C I T Y O F
M O U N T A I N V I E W
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Attachment 2
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CITY OF MOUNTAIN VIEW, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Prepared by the
DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES
Jesse Takahashi, Finance and Administrative Services Director Helen He, Accounting Manager
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
i
Table of Contents
INTRODUCTORY SECTION Exhibit
Letter of Transmittal ............................................................................................................................................ 1 Directory of City Officials ..................................................................................................................................... 2 City Government Organization ............................................................................................................................ 3 GFOA Certificate of Achievement for Excellence in Financial Reporting........................................................... 4
FINANCIAL SECTION Page
Independent Auditor’s Report ........................................................................................................................... 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) .................... 5
Basic Financial Statements:
Government‐wide Financial Statements:
Statement of Net Position ............................................................................................................. 21 Statement of Activities ................................................................................................................... 22
Fund Financial Statements:
Governmental Funds:
Balance Sheet ................................................................................................................................. 24 Reconciliation of the Balance Sheet of Governmental Funds to the Government‐ wide Statement of Net Position – Governmental Activities ................................................... 27 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................ 28 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government‐wide Statement of Activities ‐ Governmental Activities .................................................................................... 31 Statements of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
General Fund ..................................................................................................................... 33 Shoreline Regional Park Community Fund ....................................................................... 34 Housing Fund .................................................................................................................... 35
Proprietary Funds:
Statement of Net Position ............................................................................................................. 36 Statement of Revenues, Expenses, and Changes in Net Position .................................................. 38 Statement of Cash Flows ............................................................................................................... 40
Custodial Funds:
Statement of Fiduciary Net Position .............................................................................................. 42 Statement of Changes in Fiduciary Net Position ........................................................................... 43 CITY OF MOUNTAIN VIEW, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
ii
Table of Contents
Page
FINANCIAL SECTION (Continued)
Notes to Basic Financial Statements .................................................................................................... 45
Required Supplementary Information:
Schedule of Changes in Net Pension Liability and
Related Ratios – Miscellaneous Plan ................................................................................................. 101 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ..................................... 102 Schedule of Employer Pension Contributions – Miscellaneous and Safety Plans .................................. 103 Schedule of Changes in Net OPEB Liability and Related Ratios ............................................................... 104 Schedule of Employer OPEB Contributions .............................................................................................. 105
Other Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Park Land Dedication Capital Projects Fund ............................................... 107
Nonmajor Governmental Funds:
Combining Balance Sheet ................................................................................................................... 110 Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances ..................................... ....................................................................... 114 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ............................ ................................................................. 118
Internal Service Funds:
Combining Statement of Net Position ................................................................................................ 126 Combining Statement of Revenues, Expenses, and Changes in Net Position .................................... 128 Combining Statement of Cash Flows .................................................................................................. 130
Custodial Funds:
Combining Statement of Fiduciary Net Position .......................................................................... 134 Combining Statement of Changes in Fiduciary Net Position ..... .................................................. 135
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ................................................................................ 138 Changes in Net Position – Last Ten Fiscal Years ....................................................................................... 140 Fund Balances of Governmental Funds – Last Ten Fiscal Years .............................................................. 144 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................................... 146
CITY OF MOUNTAIN VIEW, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
iii
Table of Contents
Page
STATISTICAL SECTION (Continued)
Revenue Capacity:
Assessed Value of Taxable Property – Last Ten Fiscal Years ................................................................... 148 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ........................................................ 150 Principal Property Tax Payers – Current Year and Nine Years Ago ......................................................... 151 Property Tax Levies and Collections – Last Ten Fiscal Years .................................................................... 153
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ..................................................................... 154 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years ....................................................... 156 Direct and Overlapping Governmental Activities Debt ........................................................................... 157 Legal Debt Margin Information – Last Ten Fiscal Years ........................................................................... 158 Debt Pledged–Revenue Coverage – Last Ten Fiscal Years ....................................................................... 160
Demographic and Economic Information:
Demographic Statistics – Last Ten Fiscal Years ........................................................................................ 164 Principal Employers – Current Year and Nine Years Ago ......................................................................... 165
Operating Information:
Full‐Time Equivalent City Government Employees by
Function – Last Ten Fiscal Years ................................................................................................................ 166 Operating Indicators by Function/Program – Last Ten Fiscal Years ........................................................ 168 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ..................................................... 170
COMPONENT UNIT FINANCIAL STATEMENTS SECTION
Mountain View Shoreline Regional Park Community .............................................................................. 173
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FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT
500 Castro Street, P.O. Box 7540
Mountain View, CA 94039-7540
650-903-6316 | MountainView.gov
November 18, 2022
Honorable Mayor, City Council, and Members of the Mountain View Community:
Despite challenges brought about from the COVID-19 pandemic, the City of Mountain View (City) has reaffirmed its commitment to bring relief to the community by dedicating resources for a variety of programs and services to help mitigate the negative effects of the pandemic on the most vulnerable members of our community. Emphasis was placed on providing resources and implementing programs for low-income residents, the homeless and unstably housed individuals, those at risk of losing their homes due to the inability to pay their rent, and small businesses. The City dedicated the first half of a $15.7 million Federal award of Federal American Rescue Plan Act (ARPA) funds received during the year in a variety of ways, including direct assistance to residents in need through establishing a Guaranteed Basic Income pilot pr ogram and by providing direct relief funding to the Mountain View Solidarity Fund and Community Services Agency. In addition, funds were also used for utility bill relief, small business gr ants, development of an economic vitality strategy, nonprofit agencies, technology to support Ci t y o p e r a t i o n a l e f f i c i e n c i e s a n d remote work, funding for City employees, and for facility improvements and supplies required to maintain the health and safety of employees and the public. Th e City partnered with various community-based organizations to assist in the implementation o f these programs to help numerous residents in the Mountain View community cope with the effects from the past years of the pandemic.
As the City began to return to normal operations, attention turned to addressing a growing staff workload as the business economy also continued to recover and see increased activity. In the first half of the year, the City experienced a higher-than-usual amount of turnover and vacancies resulting from both the impacts of the pandemic over the past c ouple of years and a higher number of retirements stemming from generational demographics. This put a strain on the City’s timing and ability to deliver all the projects and initiatives currently in process. Nevertheless, City leadership remains committed to providing exceptional service to the community and has been taking steps to enhance our ability to retain current employees while also attracting new talent.
A study was also completed on the development review process wh ich focused on streamlining and improving the review process for private development projects. As a result of the study, the C i t y i s i n t h e p r o c e s s o f i m p l e m e n t i n g m a n y o f t h e r e c o m m e n d a t ions that were made and is developing an enhanced and easier process for applicants as wel l as technology improvements.
In addition, all City departments worked tirelessly to reintegr ate their operations with the “new normal” postpandemic environment in which we now find ourselves.
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Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
As we move ahead, we are pleased to present the City’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. The ACFR has been prepared in conformity with the principles and standards for financial reporting set forth by the Governmental Accounting Standards Board (GASB) and in compliance with the City Charter Section 1106.
Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with City management. We believe the data, as presented, is accurate in all material respects, that its presentation fairly shows the financial position and the results of the City’s operations as measured by the financial activity of the City’s various funds , and, in conjunction with the included notes , will provide the reader with an understanding of the City’s financial status.
To provide a basis for making these representations, City management has established a comprehensive internal control framework that is designed both to protect the government’ s assets from loss, theft , or misuse and to compile sufficiently reliable information for the preparation of the City’s financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Because the cost of internal controls should not outweigh its benefits, the City ’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement.
The City ’s financial statements have been audited by Macias Gini & O’Connell LLP, a firm of independent licensed certified public accountants, selected by and reporting to the City Council.
The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022 are free of material misstatement.
The independent auditor issued a “clean” opinion that the City ’s financial statements for the fiscal year ended June 30, 2022 are fairly presented in conformity with GAAP. The independent auditor’s report is presented at the beginning of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview , and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City ’s MD&A can be found immediately following the report of the independent auditors.
The ACFR is divided into the following sections:
The Introductory Section in
cludes this letter of transmittal, an overview of the organizational structure of the City, and prior awards received.
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
The Financial Section i
ncludes the following:
• Independent Auditor’s Report.
• Management’s Discussion and Analysis.
• Basic Financial Statements —Includes the government -wide financial statements that present an overview of the City’s entire financial operations and the fund financial statements that present financial information for each of the City’s major funds as well as other governmental, proprietary, and custodial funds.
• Notes to Basic Financial Statements —The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements.
• Required Supplementary Information—I ncludes schedules required to be presented, showing information related to the City’s pension plan and other postemployment benefits plan.
• Other Supplementary Information —Includes the Budgetary Schedule of the Park Land Dedication Capital Projects Fund, Combining Statements and Schedules of the nonmajor governmental funds, internal service funds, and custodial funds.
The Statistical Section in
cludes tables containing historical financial data, debt statistics, and miscellaneous social and economic data of the City that may be of interest to potential investors in the City’s bonds and to other readers. The data includes 10 -year revenue and e xpenditure information as well as 10 years of net position/fund balance information.
T
his A CFR includes the results of financial activities of the primary government , which encompasses several enterprise activities as well as all of its component units: the Mountain View Shoreline Regional Park Community (Shoreline Community) and the City of Mountain View Capital Improvements Financing Authority (Financing Authority). Separate financial statements for the Shoreline Community are included following the Statistical Section . There is no legal requirement for a separate component unit report for the Financing Authority.
PROFILE OF THE GOVERNMENT
The City was incorporat ed on November 7, 1902. The City Charter was originally approved by voters in 1952 and requires the City to operate under a Council -Manager form of government.
Seven Councilmembers are elected at -large for four- year terms that are staggered so three or Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
four seats are filled at the general municipal election in November of every even-numbered year.
Continuous service on the City Council is limited to two consecutive terms. Each year, in January, Council elects one of its members as Mayor and another as Vice Mayor.
With a population of approximately 83,900 and occupying just over 12 square miles, Mountain View is situated in Silicon Valley, about 36 miles southeast of the City of San Francisco and 15 miles northwest of the City of San Jose.
The City provides the following full range of municipal services, which are reflected in this report:
• General government ( city management, legal, human resources , information technology, and financial activities);
• Public safety (police and fire services);
• Public works (engineering, design, and utility maintenance);
• Community development (land use , development review, inspections, and affordable housing);
• Culture and recreation (library, parks, recreation, performing arts, and golf course); and
• The City also provides water, wastewater , and solid waste utility enterprise activities , and the financial information regarding these activities is included in this report.
The financial reporting entity includes all funds of the primary government (i.e., the City) as well as its component units. The Shoreline Community and Financing Authority are component units of the City and are blended in the reporting entity. However, this does not mean the City assumes the obligations or liabilities of these entities, and they are budgeted and accounted for separately from the City.
No other agencies or activities associated with the City , or utilizing a name similar to the City , meet the established criteria for inclusion in the reporting entity and, accordingly, are excluded from this report.
The City Council is required by the City Charter to adopt a budget by June 30 to be in effect for the ensuing fiscal year, which begins Ju ly 1. Budgets are approved at the fund and department level (legal level of control) and may not be exceeded without City Council approval. Transfers and adjustments between funds, departments , and capital projects must be submitted to the Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
City Council for approval. The City Charter requires approval by five votes of the seven-member City Council to amend the budget.
LOCAL ECONOMY
The City is centrally located in Silicon Valley and is serviced by several major freeways (U.S. 101, Interstate 280, State Route 85, and State Route 237) connecting the City to three international airports, shipping, and rail lines in the Bay Area. Mountain View is also a regional transportation hub and has transit stops for the Caltrain commuter train and Santa Clara Valley Transportation Authority (VTA) light rail system.
Effects of the COVID -19 pandemic continued to subside during the past year as the economy began to return to more normal activities. Many businesses brought employees back to the office as they ret urned to full operation and utilized some combination of in -person and work-from-home scheduling. Office vacancy rates in Silicon Valley , which were much higher during the pandemic, were approximately 10% at June 2022.
Another indicator of the local economy ’s health is unemployment. T he unemployment rate in Mountain View at September 2022 was 1.6 % compared to the prior-year rate of 2.4 % for the same month, reflecting the relative strength of employment in the local region . In spite of the various challenges that have been presented to the City , the City has a history of maintaining prudent fiscal practices and budget discipline that have enabled the City to consistently maintain its AAA credit rating.
The economic vitality of the City relies upon a strong and diversified business community that is flexible enough to withstand economic cha llenges. As part of the City’s economic development efforts, the City works to attract and retain companies with gro wth potential and make the City a desirable location for the corporate community . As a result, Mountain View continues to be recognized as a prime location in Silicon Valley in which to live and work . Mountain View’s innovation economy includes major technology companies, including Google, Intuit, LinkedIn, Microsoft, NortonLifeLock, Omnicell, Pure Storage, Samsung, Siemens Medical Solutions, and Synopsys. Downtown Mountain View is a key location for b usinesses, especially start -up companies, because of the diverse number of retailers and restaurants and convenient access to public transportation.
The City is also committed to preserving its existing services and programs while investing in the future through prudent budgeting and infrastructure development. During the past decade, the City experienced a strong economy that, together with sound fiscal planning, has allowed the City to increase resources where needed and to pay down pension and other postemployment Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
benefit obligations. It has also allowed for the maintenance of adequate reserves for times of economic downturn.
LONG-TERM FINANCIAL PLANNING
The City annually prepares a five -year forecast for its General Operating Fund and , periodically, a Long-Range Financial Forecast to project revenue and expenditure trends for the next 10 years.
A Five -Year Financial Forecast (Forecast) was developed for Fiscal Y ears 2022-23 through 2026-27. A financial forecast, even with fluctuating economic variables, can assist with the identification of long-term financial trends, causes of fiscal imbalances, future fiscal challenges, opportunities, and potential requirements, all of which may assist in keeping the City on a continuing path of fiscal sustainability. While it is challenging to accurately forecast revenues due to the variable nature of the revenue sources and their connection to regional, State, national, and international economic conditions, it is possible to identify reasonable financial trends and provide a conceptual financial picture that will be useful to the City’s decision-making.
The Forecast guides the City as it continues to confront the need to balance expenditures and revenues.
The General Fund Forecast shows positive ending balances for Fiscal Years 2022-23 through 2026-27. Operating and emergency reserves are also maintained at levels to withstand future economic downturns.
In summary, overall revenues are expected to continu e to grow during the forecast period due to the continued growth in property and other taxes as well as from future anticipated new development projects in the City that will add to the tax base over time.
RELEVANT FINANCIAL POLICIES
The City Council has established a financial and budgetary policy framework which is reviewed and updated as necessary by the City Council. A comprehensive and consistent set of financial and budgetary policies provides a basis for sound financial planning, identifies appropriate directions for service -level developments, aids budgetary decision- making, and serves as an overall framework to guide financial management and operations of the City.
The City’s adoption of financial policies also promotes public confidence and increases the City’s credibility in the eyes of bond-rating agencies and potential investors. Such policies also provide the resources to react to potential financial emergencies in a prudent manner.
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
MAJOR INITIATIVES
In June 2021, the City adopted a Strategic Roadmap Action Plan (Action Plan) that focused on seven key priorities : ( 1) Intentional Development and Housing Options ; ( 2) Mobility and Connectivity; ( 3) Sustainability and Climate Resiliency ; ( 4) Livability and Quality of Life ; ( 5) Economic Vitality; (6) Organizational Strength and Good Governance; and (7) Community for All.
The Action Plan included 42 projects covering all categories with an initial two-year work plan. A number of the projects have been completed in the first year with the remaining ones in various stages of completion.
Below is a selection of accomplishments from the past year, including some that are related directly to the Action Plan:
• Expanded the Eviction Prevention Center into the Housing and Eviction Help Center to facilitate access to rent relief, legal services, and affordable housing.
• Approved the City’s first two S enate Bill (SB) 35 affordable housing projects —Lot 12 and 1100 La Avenida.
• Developed an ordinance requiring the safe storage of firearms in residences and vehicles in Mountain View.
• Secured Project Homekey funding to redevelop the Crestview Hotel into permanent affordable housing and selected a developer.
• Facilitated the process to implement a new Strategic Roadmap for the City, including a new vision statement, seven new Strategic Priorities, and a Council work plan with projects and initiatives supporting the Strategic Priorities.
• Collaborated with the Cities of Los Altos and Palo Alto to receive $2 million in Federal funding in support of developing alternative responses to mental health crises, as advanced by Congresswoman Anna Eshoo.
• Collaborated with State Senator John Becker to secure $8 million in State funding for the City-owned Lot 12 affordable housing project.
• Launched a new and improved Safe Routes to School program, with the first major training events on April 7, 2022 at Graham Middle School for 800 students, April 26 and 27, 2022 at Edith Landels Elementary School for 3 30 students, and May 25 , 2022 at Benjamin Bubb Elementary School for 380 students.
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
• Developed a Memorandum of Understanding with the County of Santa Clara to secure Measure A funds in the amount of $80 million for Mountain View affordable housing developments to build up to 200 units of permanent supportive housing/rapid rehousing.
• Expanded the Crisis Negotiations Team (including the addition of four Spanish -speaking officers) to provide patrol teams with officers trained and experienced with advanced deescalation and tactical communication abilities to engage with community members experiencing a mental health crisis.
• Continued the Behavioral Services Unit (BSU) p ilot program, staffed by a team of Officers with over 80 hours of specialized crisis training and a Community Services Officer who is an Associate Licensed Professional Clinical Counselor/Marriage and Family Therapist, to review and follow up on mental health -related calls, provide resources and referrals, and serve as a liaison with the Santa Clara County’s Mobile Crisis Response Team to reduce or eliminate the need for further Police Officer contact.
• Completed the Ph.D. Research Fellow assessment of Mountain View Police Department Traffic Stop Data and presented it to the Public Safety Advisory Board, in conjunction with the Police Department.
• Created a Threat Assessment team to help Police Department staff evaluate and address an increase in the number of threats made via social media related to local businesses, dignitaries, and events.
• Took new investigative steps in 10 unsolved cold-case homicides, closing two cases in 2021 and solving a 30-year-old homicide case in 2022.
• Supported COVID-19 testing at the Mountain View Community Center and the Mountain View Center for Performing Arts in conjunction with the County of Santa Clara, with over 24,000 COVID-19 tests completed at City sites since May 2020 and over 7,000 completed in Fiscal Year 2021-22.
• Supported the County of Santa Clara’s COVID -19 vaccination clinic site at the Community Center to provide vaccinations to the public, including booster shots and vaccinations for youth, with 137,561 vaccinations completed from January 22, 2021 through April 30, 2022 and over 58,000 completed in Fiscal Year 2021-22.
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
• Engaged with Audubon Society and GreenSpacesMV volunteers to establish and maintain a biodiverse pollinator habitat with native plants and sustainable landscaping at Cuesta Park.
• Transitioned the administration of the Below-Market-Rate (BMR) housing program to a new administrator who is able to implement Phase 2 modifications, which includes a homeowners association (HOA) reserve to help lower- income BMR households with increases in HOA fees.
• Completed construction and hosted a grand opening for Mora Park.
• Celebrated the graduation of the first person to complete the Library’s Career Online High School program, with the graduate finishing the 18-month course in only 12 months.
• Created the City’s first Human Services Division.
• Conducted the City’s first Chinese Language Civic Leadership Academy.
• Conducted a Spanish Language Civic Leadership Academy.
• Adopted a Downtown Parking Strategy to improve the efficiency of existing parking, implement parking technology, support transportation demand management and multi-modal transportation goals, and identify and develop policies to increase parking supply.
• Incorporated American Sign Language (ASL) into story -time programming to increase accessibility.
• Reopened facilities for in -person programs and facility rentals for Recreation, Shoreline, and Center for the Performing Arts divisions, including, but not limited to, aquatics programs, after- school programs, senior programming, ParkStage and Main Stage performances, barbecue reservations, athletic field reservations, Rengstorff House reservations, summer camps, and youth and adult classes.
• Implemented in -person City special events with the return of the Concert on the Plaza Series, Summer Outdoor Movie Night Series, Monster Bash, Community Tree Lighting Ceremony, Multicultural Festival, KidStock, and more.
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
• Developed agreements and worked with the Mountain View Solidarity Fund and Los Altos Mountain View Community Foundation to provide $1 million in City funds for them to disburse one-time financial assistance to extremely low-income residents.
• Continued operation of the COVID-19 mobile vaccination program in coordination with the Santa Clara County Public Health Department, administering vaccinations and booster shots to elderly and homebound Mountain View residents.
• Adopted the Food Service Ware Ordinance update requiring compostable fiber single -use food and beverage containers to advance the City’s Zero Waste Plan initiative, Food Ware Packaging Reduction Plan Phase 1.
• Launched a return to in-person programs with weekly outdoor story times in Pioneer Park, a Jazz in the Park concert, and monthly Drop-In Bike Clinics.
• Launched Common Core -aligned virtual field trips that incorporate the Library’s History Center and other local history information for elementary students.
• Launched a second cohort of Cool Block neighborhood teams to help residents adopt sustainable practices, build community, and be more disaster-prepared and resilient.
• Developed an e-bike rebate program focused on low-income residents.
• Began construction of a new Rengstorff Aquatics Center.
• Adopted the Mandatory Organic Waste Disposal Reduction Ordinance for residents and businesses in compliance with SB 1383 to lower greenhouse gas emissions from methane , which is produced when organic material is landfilled.
• Provided essential services for unhoused and unstably housed residents.
• Streamlined the business license application process to reduce the wait time to receive a business license.
• Developed and implemented a refreshed City visual identity with a new City logo, colors, font, and other elements to reflect the City’s vision and enhance community communications.
• Redesigned The View newsletter to provide enhanced access to relevant and timely City information to every household in Mountain View.
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
• Completed the 2021 Sea Level Study Update.
• Completed the Bonny/Beatrice Open Space Improvements project, which included the installation of a 6’ asphalt walking path, over 150 plants, new irrigation lines , and new mulch.
• Partnered with a Stanford University neuroscience researcher to study the effects of critical decision-making as it relates to situational and physiological factors to help inform the most effective ways to train Officers for critical incidents.
• Celebrated California Arbor Day at Eagle Park with the planting of five 24 ” box flowering cherry trees and one 24” box valley oak tree.
• Approved 97 Mountain View small b usiness grants totaling $485,000 to support the recovery of the local economy.
• Implemented nine of the 10 Small Business Action Plan items to assist the City’s small businesses during the pandemic economic crisis and strengthen their resilience for the longer term.
• Completed a cybersecurity threat assessment.
• Implemented a network and server monitoring system to identify and respond to cyberattacks.
• Developed new Firerun maps for the Fire Department, which provide fire -specific information, such as hydrants, road blockages, and buildings’ Fire Department Connections.
• Started selling landfill gas to Google/Bloom Energy to generate power at their fuel cell system.
• Created an eLibrary card to provide access to the digital Libr ary, Library computers, and study rooms.
• Approved the acquisition of 0.63 acre at 711 Calderon Avenue for a new mini-park.
• Offered in-person free tax preparation assistance to low -income members of the public in collaboration with United Way Bay Area.
• Installed additional touchless pedestrian push buttons at traffic signals.
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 18, 2022
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. This was the 32nd consecutive year the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City had to publish an easily readable and efficiently organized AC FR that satisfied both GAAP and applicable legal requirements. The GFOA award is valid for a one-year period only. We believe our current ACFR continues to meet the program ’s requirements , and we are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the City also received the GFOA’s Distinguished Budget Presentation Award for the City’s annual budget document for Fiscal Year 2021-22. In order to qualify for this Distinguished Budget Presentation Award, the government’s budget document had to be judged proficient as a policy document, a financial plan, an operations guide, and a communication device.
The preparation of the ACFR was made possible b y the dedication of the entire Finance and Administrative Services Department staff, in particular Janet Shum, Acting Accounting Manager, and Marichi Valle, Accountant . Every member of the Department deserves recognition and thanks for their commitment to the City and their profession. We would also like to thank the members of the City Council for their leadership and policy guidance in managing the financial operations of the City in a fiscally responsible manner.
Respectfully submitted,
Jesse Takahashi Kimbra McCarthy
Finance and Administrative City Manager
Services Director
JT-KM/GZ/4/FIN
546-11-18-22L
Exhibit 2
City of Mountain View
California
City Officials
City Council
Mayor — Lucas Ramirez
Vice Mayor — Aliso
n Hicks
Margaret Abe‐Koga
Ellen Kamei
Sally Lieber
Lisa Matichak
Pat Showalter
Executive Staff
City Manager — Kimbra McCarthy
City Attorney — Jennifer Logue
City Clerk — Heather Glaser
Assistant City Manager/Chief Operating Officer — Audrey Seymour Ramberg Human Resources Director — Sue Rush
CIO/Information Technology Director — Roger R. Jensen
Finance and Administrative Services Director — Jesse Takahashi Assistant City Manager/Community Development Director — Aarti Shrivastava Public Works Director — Dawn Cameron
Community Services Director — John Marchant
Library Ser
vices Director — Tracy Gray
Fire Chief — Juan Diaz
Police Chief — Chris Hsiung
CITY GOVERNMENT ORGANIZATION
CITY BOARDS, COMMISSIONS, AND COMMITTEES
Charter Non-Charter
COMMUNITY
SERVICES
LIBRARY
CITY COUNCIL
MOUNTAIN VIEW RESIDENTS
CITY ATTORNEY
CITY AUDITOR*
CITY CLERK
CITY MANAGER
KEY: ELECTED
APPOINTED BY COUNCIL
APPOINTED BY CITY MANAGER
Environmental Planning Commission
Library Board
Parks and Recreation Commission
Rental Housing Committee
Bicycle/Pedestrian Advisory Committee
Downtown Committee
Human Relations Commission
Performing Arts Committee
Public Safety Advisory Board
Senior Advisory Committee
Tennis Advisory Board
Visual Arts Committee
Youth Advisory Committee
* Finance and Administrative Services Director serves as City Auditor.
OFFICE
INFORMATION
TECHNOLOGY
FINANCE AND
ADMINISTRATIVE
SERVICES
COMMUNITY
DEVELOPMENT PUBLIC WORKS FIRE POLICE
HUMAN
RESOURCES
Exhibit 3
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Mountain
View
California
For its Annual
Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
Exhibit 4
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`
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
1 Independent Auditor’s Report
Honorable Mayor and Members
of the City Council
City of Mountain View, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental ac tivities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Mountain View, California (City), as of and for the year ended June 30, 2022, and the related not es to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position an d, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, the Shoreline Regional Park Co mmunity Fund, and the Housing Fund 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 ge nerally 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 r esponsibilities 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 requi rements 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.
Emphasis of Matter
As discussed in Note 1 to the financial statements, as of July 1, 2021, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for t he preparation and fair presenta tion 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.
2 In preparing the financial statements, management is required t o evaluate whether there are conditions or events, considered in the aggregate, that raise substantial dou bt 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 as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from erro r, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substan tial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• exercise professional judgment and maintain professional skep ticism 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 a udit in order to design audit procedures that are appropriate in the circumstances, but not for the purp ose 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 th e overall presentation of the financial statements.
• conclude whether, in our judgment, there are conditions or ev ents, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governan ce regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States o f America require that the management’s discussion and analysis, the schedules of changes in net pension liability and related ratios, the schedule of employer pension contributions, the schedule of changes in net OPEB liability and related ratios, and the schedule of employer OPEB contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibil ity of management and, although not a part of the basic financial statements, is required by the GASB who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the i nformation and comparing
3 the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplemental Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The individual and combining fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures appli ed in the audit of the basic financial statements and certain additional procedures, including compari ng 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 individual and combining fund financial statements and schedules is fairly stated, in al l material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report.
The other information comprises the introductory section, statistical section, and component unit f inancial statements section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the oth er information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of t he basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exist s between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated November 18, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regula tions, contracts, and grant agreements and other matters. The purpose of t hat report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s inte rnal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Walnut Creek, California
November 18, 2022
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5 CITY OF MOUNTAIN VIEW, CALIFORNIA
Management’s Discussion and Analysis (MD&A) (Unaudited) For the Fiscal Year Ended June 30, 2022
This section of the City of Mountain View’s (City) Annual Comprehensive Financial Report (ACFR) presents a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022. We encourage
readers to consider the information presented here in conjunction with additional information that has been furnished in our letter of transmittal and to recognize that the financial statements focus on past results compared to the City’s operating budget that focuses on future goals and allocation of resources.
FINANCIAL HIGHLIGHTS
The following are some of the key financial highlights for the fiscal year:
• The assets and
deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the fiscal year ended June 30, 2022 by $1.40 billion (net position).
• The City’s total net position increased by $172.9 million (excluding the impact of restatement) compar
ed to the $68.0 million increase in the prior fiscal year. This is primarily attributable to higher charges for services, additional grants and contributions, increased property taxes, sales taxes, and other taxes. Most of these increases are due to recovery from the COVID‐19 pandemic as normal
activities gradually return. Property tax increases
resulted from the continued strength in the residential and commercial real estate markets as evidenced by another year of strong growth in assessed values. • Total revenues for governmental funds are $368.2 million, an increase of $82.8 million or
29.0% over the prior fiscal year.
Revenue increases are primarily due to increases in charges for services, intergovernmental revenue, and various tax revenue offset by a decrease in use of money and property revenue resulted from the impact of fair‐value adjustments to the City’s investments upon the increase in interest rates toward the end of the year. • Expenditures
for governmental funds totaled $279.3 million, an increase of $59.5 million or
27.1% over the prior fiscal year, primarily related to an increase in capital outlay expenditures for capital improvement projects.
• Overall, governmental fund revenues exceeded expenditures by $88.9 million, excluding transfers. More details are discussed below.
6 • As of June 30, 2022, the City’s governmental funds reported combined ending fund balances of $929.9 million. Approximately 10.0% of this amount, $93.4 million, represents General Fund unassigned fund balance that is available to meet the City’s current and future needs. It is designated for future one‐time expenditures, one‐time payments toward unfunded liabilities, and emergency funds and is 56.5% of to tal General Fund expenditures
for the fiscal year ended June 30, 2022, an increase of 37.8% over the prior fiscal year. • The City’s total current and other liabilities decreased by $100.9 million compared with the prior fiscal year primality due to a decreas e of net pension liability of $99.0 million, resulting from higher investment returns during the measurement year. • The City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases (GASB 87), as of July 1, 2021, which resulted in a reduction of the beginning net position of governmental activities and fund balance of the General Fund of $2.2 million. At June 30, 2022, the City, as a lessor, reported $794.5 million of lease receivables and $781.4 million of related de
ferred inflow of resources, while the City, as a
lessee, reported right‐to‐use leased assets of $6.5 million and lease liability of $6.5 million.
OVERVIEW OF THE FINANCIAL STATEMENT
S
This discussion and analysis are
intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components:
(1) government‐wide financial statements; (2) fund financial statements; and (3) notes to the basic financial statements. This report also contains required and other supplementar y information in addition to the basic financial statements themselves.
Government‐Wide Financial Statements
The government‐wide financial statements
are designed to provide readers with a broad
overview of the City’s finances in a manner similar to a private‐sector business.
The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference b etween them reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the overall financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net positio n are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to earned, but unused, vacation and sick leave. 7 Both of the government‐wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business‐type activities). The governmental activities of the City include general government, public safety, public works, community development, and culture and recreation. The business‐type activities of the City include water, wastewater, and solid waste operations (enterprise funds).
The government‐wide financial statements include not only the City itself (known as the primary government) but also two legally separate entities for which the City is financially accountable:
(1) Mountain View Shoreline Regional Park Community (Shoreline Community or SRPC); and
(2) City of Mountain View Capital Improvements Financing Authority (Financing Authority).
Although legally separate from the City, these component units are blended with the primary government because they have the same governing board as the City and because of their financial relationship with the City. In addition, separate financial statements for the Shoreline Community component unit is included within the City’s ACFR.
Fund Financial Statements
The fund financial statements are
designed to report information about groupings of related accounts, which are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other State and local governments, uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. All of the funds of the City can be divided into the following three cate gories: governmental funds,
proprietary funds, and custodial funds.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government‐wide financial statements. However, unlike the government‐wide financial statements, governmental fund financial statements focus on near‐ term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in determining what financial re
sources are available in the near future to finance the City’s programs.
Because the focus of governmental funds is narrower than that of the government‐wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government‐wide financial statements. By doing so, readers may better understand the long‐term impa ct of the
government’s near‐term financing decisions. Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
8 The City maintains several individual governmental funds organized according to their type (special revenue, debt service, and capital projects funds). Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Shoreline Regional Park Community Fund, Housing Fund, General Capital Projects Fund, and Park Land Dedication Capita l
Projects Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its major funds exce pt the General Capital
Projects Fund, which is budgeted on a project basis. Budgetary comparison statements and schedules have been provided for these funds to demonstrate compliance with budgets.
Proprietary funds are generally used to account for services for which the City charges customers, either external customers or internal customers or departments of the City. Proprietary funds provide the same type of information as shown in the government‐wide financial statements, only in more detail. The City maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business‐type activities in the government‐wide financial statements. The City uses enterpr ise funds to account for its
water, wastewater, and solid waste operations, all of which are considered to be major funds of the City.
Internal service funds are used to accumulate and allocate costs internally among the City’s various functions. The Cit
y uses internal service funds to account for its equipment maintenance and replacement, Retirees’ Health Plan, Employee Benefits Plan, and various other self‐insurance liability programs. Because these services predominantly benefit governmental rather than business‐type functions, they have been included within governmental activities in the government‐wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.
Custodial funds are used to account for fiduciary activities and resources held for the benefit of individuals, organizations, or other governments that are not part of the City. Since the resources of these funds are not available to support the City’s own programs, they are not reflected in the government‐wide financial statements.
Notes to Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government‐wide and fund financial statements. 9 Other
Required Supplementary Information includes schedules required to be presented showing information related to the City’s pension plans and other postemployment benefits plan.
Other Supplementary Information includes the combining statements and schedules of the nonmajor governmental funds, internal service funds, and custodial funds.
GOVERNMENT‐WIDE FINANCIAL ANALYSIS
The City presents its financial statements under the reporting model required by accounting principles ge
nerally accepted in the United States of America. Two fiscal years of financial information and a comparative analysis of government‐wide data are included in this MD&A. 10 Analysis of Net Position
A condensed summary of the City’s net position for governmental and business‐type activities is
as follows:
2022 2021 2022 2021 2022 2021
Assets:
Current and other assets 1,056,206 $ 953,609 147,098 134,655 1,203,304 1,088,264 Lease receivables 794,487 ‐ ‐ ‐ 794,487 ‐ Capital assets 527,671 485,944 97,965 96,581 625,636 582,525 Total assets 2,378,364 1,439,553 245,063 231,236 2,623,427 1,670,789 Deferred outflows of resources:
Pension items 32,990 35,692 3,051 3,478 36,041 39,170 OPEB Items 9,332 9,426 341 329 9,673 9,755 Total deferred outflows of resources 42,322 45,118 3,392 3,807 45,714 48,925 Liabilities:
Current and other liabilities 1
86,640 276,795 16,747 26,647 203,387 303,442
Noncurrent liabilities 161,576 156,335 14,916 16,221 176,492 172,556 Total liabilities 348,216 433,130 31,663 42,868 379,879 475,998 Deferred inflows of resources:
Pension items 66,174 ‐ 5,523 ‐ 71,697 ‐ OPEB items 31,674 9,869 ‐ ‐ 31,674 9,869 Leases 781,366 ‐ ‐ ‐ 781,366 ‐
Total deferred inflows of resources 879,214 9,869 5,523 ‐ 884,737 9,869 Net position:
Net investment in capital assets 502,737 467,855 87,218 86,020 589,955 553,875 Restricted 624,062 562,840 ‐ ‐ 624,062 562,840 Unrestricted 66,457 10,977 124,051 106,155 190,508 117,132 1,193,256$ 1,041,672 211,269 192,175 1,404,525 1,233,847 Condensed Statement of Net Position
(Dollars in Thousands)
Governmental Activities Business ‐Type Activities Total The largest portion (44.4%) of the City’s net position, or $624.1 million, represents resources that are
subject to external restrictions on how they may be used. An additional 42.0% of the City’s net position, or $590.0 million, reflects its investment in capital assets (e.g., land, buildings, other improvements, etc.) less any related debt used to acquire those assets that is still outstanding.
The City uses these capital assets to provide services to its residents and, therefore, thes e assets
are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be liquidated for thes e
liabilities. The last portion of the City’s net position, $190.5 million (13.6%), represents unrestricted net position.
Total expenses
Change in net position before transfers
Transfers, net
Change in net position
Beginning net position, as previously reported
Change in accounting principles
Beginning net position, as restated
Ending net position
11 The City’s total current and liabilities decreased by $100.9 million, compared with the prior fiscal year, primarily due to a decrease of net pension liability of $99.0 million resulting from higher investment returns during the measurement year.
The City implemented GASB 87 as of July 1, 2021, which resulted in a reduction of the beginning net position of gove
rnmental activities of $2.2 million. At June 30, 2022, the City’s governmental activities, as a lessor, reported $794.5 million of lease receivables and $781.4 million of related deferred inflow of resources, while the City, as a lessee, reported right‐to‐use leased assets of $6.5 million and lease liability of $6.5 million.
Analysis of Statement of Activities
The changes in net position for governmental and business‐type activities are as follows:
2022 2021 2022 2021 2022 2021
Revenues:
Program Revenues:
Charges for services 85,260$ 65,311 78,687 75,898 163,947 141,209 Operating grants and contributions 20,073 4,572 546 ‐ 20,619 4,572 Capital grants and contributions 94,132 56,217 9,465 5,033 103,597 61,250 General Revenues:
Property taxes 128,861 119,678 ‐ ‐ 128,861 119,678 Sales taxes 23,456 18,284 ‐ ‐ 23,456 18,284 Transient occupancy tax 4,437 1,918 ‐ ‐ 4,437 1,918 Utility users tax 8,717 7,654 ‐ ‐ 8,717 7,654 Nonregulatory franchise and business 11,784 9,408 ‐ ‐ 11,784 9,408 Intergovernmental revenue 281 242 ‐ ‐ 281 242 Investment income (14,108) 1,056 (2,230) (24) (16,338) 1,032 Total revenues 362,893 284,340 86,468 80,907 449,361 365,247 Expenses:
General government 50,952 51,531 ‐ ‐ 50,952 51,531
Public safety 62,335 77,385 ‐ ‐ 62,335 77,385
Public works 42,119 39,487 ‐ ‐ 42,119 39,487
Community development 15,726 17,143 ‐ ‐ 15,726 17,143 Culture and recreation 33,840 35,164 ‐ ‐ 33,840 35,164 Interest on long‐term debt 4,179 4,176 ‐ ‐ 4,179 4,176 Water ‐ ‐ 32,425 36,982 32,425 36,982
Wastewater ‐ ‐ 22,359 21,847 22,359 21,847
Solid Waste ‐ ‐ 12,543 13,573 12,543 13,573
209,151 224,886 67,327 72,402 276,478 297,288
153,742 59,454 19,141 8,505 172,883 67,959
47 (9) (47) 9 ‐ ‐
153,789 59,445 19,094 8,514 172,883 67,959
1,041,672 982,227 192,175 183,661 1,233,847 1,165,888
(2,205) ‐ ‐ ‐ (2,205) ‐
1,039,467 982,227 192,175 183,661 1,231,642 1,165,888
1,193,256$ 1,041,672 211,269 192,175 1,404,525 1,233,847 Condensed Statement of Activities
(Dollars in Thousands)
Governmental Activities Business ‐Type Activities Total 12 Charges for Services
22.6%
Operating Grants
and Contributions
5.3%
Capital Grants and
Contributions
25.0%
Property Taxes
34.2%
Sales Taxes
6.2%
Transient Occupancy Tax
1.2%
Utility Users Tax
2.3%
Nonregulatory Franchise
and Business
3.1% Intergovernmental
Revenue
0.1%
Governmental Activities
Revenues by Source
General Government
24.4%
Public Safety
29.8%
Public Works
20.1%
Community
Development
7.5%
Culture and Recreation
16.2%
Interest on Long‐term Debt
2.0%
Governmental Activities
Expenses by Type
13 The City’s overall net position increased by $172.9 million during the current fiscal year, excluding the impact of restatement of $2.2 million.
Governmental activities increased the City’s net position by $153.8 million compared to $59.4 million for the prior fiscal year. Key factors are as follows:
• Total revenues increased to $362.9 million, $78.6 million or 27.6% higher than the prior fiscal year. Charges for services increased by $19.9 million, primarily due to the $21.6 million overall increase in lease revenue upon the implementation of GASB 87.
Operating grants and
contributions increased $15.5 million, primarily due to $7.8 million funding received under the American Rescue Plan Act of 2021 and an $8.0 million in State funding received. Capital grants and contributions increased $37.9 million, primarily related to a one‐time public benefit in‐lieu fee of $20.4 million and increases in developer fees collected. Property taxes increased by $9.2 million over the prior fiscal year as the
residential and commercial real estate markets continued to experience strong growth in assessed values. Sales taxes and transient occupancy tax increased $5.2 million and $2.5 million, respectively, over the prior fiscal year, showing recovery from the impact of the COVID‐19 pandemic.
The total increase in revenue in the above‐mentioned areas is offset by a $15.2 million decrease in investment income, mainly due to the impact of fair‐ value adjustments to the City’s investments upon the increase in interest rates toward the end of the year.
• Total
expenses decreased to $209.2 million, $15.7 million or 7.0% lower than the prior fiscal year, primarily due to higher investment returns from the California Public Employees’ Retirement System (CalPERS) pension plans, resulting in significantly lower pension expenses for the year.
Business‐type activities increase d the City’s net position by $19.1 million. Key factors for this increase are as follows:
• Water net position increased by $9.4 million, primarily due to net operating income of $4.2 million and developer capital contribution of $5.6 million. • Wastewater net position increased by $7.8 million, primarily due to net operating income of $5.3 million and developer capital contribution of $2.4 million. • Solid waste net position increase
d by $1.9 million, primarily due to net operating income of $2.4 million.
14 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance‐related legal requirements.
Governmental Funds—The focus of the City’s governmental funds is to account for the near‐ term inflows, outflows, and balances of resources that are available for spending. This information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. Types of governmental funds reported by th e City include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds.
At June 30, 2022, the City’s governmental funds reported combined ending fund balances of $929.9 million, an increase of $101.3 million compared to the prior fiscal year, excluding the impact of restatement. The components for the change are increases of $39.5 million in the General Fund, $22.0 million in the Shoreline Regional Park Community Fund, $32.6 million in the Housing Fund, and $28.5 million in Other Governmental Funds, offset by a decrease of $2.5 million in the General Capital Projects Fund and $18.8 million in the Park Land Dedication Capital Projects Fund.
For the General Fund, revenues continued
to exceed expenditures due, in large part, to the growth in property taxes, sales taxes and other taxes, and grant funding received. The increase in the Shoreline Regional Park Community Fund is due primarily to growth in property taxes and increase in developer fees and contributions. The increase in the Housing Fund resulted from fees generated from development‐related activities. The decrease in the General Capital Projects Fund is due to increased capital expenditures as well as decreased use of money and property revenue. The decrease in the Park La nd Dedication Capital Projects Fund was due to a one‐time development‐related fee collected in the prior fiscal year and increased transfer out to other funds for capital projects.
Total fund balance is comprised of an unassigned fund balance of $93.4 million that is available for spending at the City
’s discretion. The remainder of the fund balance is nonspendable ($0.9 million), restricted ($696.9 million), committed ($132.8 million), and assigned ($5.9 million), none of which are available for new discretionary spending. The restricted fund balance increased to $696.9 million, or $63.6 million over the prior fiscal year, mainly as a result of the restricted fund balances increases in
the Shoreline Regional Park Community Fund and the Housing Fund due to factors mentioned above.
Total revenues for governmental funds were $368.2 million, representing an increase of $82.8 million from the prior fiscal year. This increase was primarily related to higher property taxes, sales taxes, other taxes, intergovernmental revenues, and developer fees and contributions, offset in part by a decrease in use of money and property reve nue. Total
expenditures for governmental funds were $279.3 million, an increase of $59.5 million from the prior fiscal year. The increase was primarily due to $28.5 million in capital outlay expenditures 15 for Plymouth Street Realignment Property Acquisition. Revenues for governmental funds exceeded expenditures by $88.9 million.
The General Fund is used to account for all revenues and expenditures necessary to carry out basic government activities of the City that is not accounted for through other funds.
At June 30, 2022, the unassigned fund balance of $93.4 million was $25.6 million higher than the prior fiscal year.
As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance of
$93.4 million represents 47.3% of total fund balance, 56.5% of fund expenditures of $165.2 million, while total fund balance represents 119.4% of that same amount.
The fund balance of the City’s General Fund increased by $37.3 million during the current fiscal year.
Total General Fund revenues increased to $213.2 million, an increase of $47.6 million over the prior fiscal year. The increase is primarily due to increases in property taxes, sales taxes, other taxes, intergovernmental revenues, and lease revenue upon the implementation of GASB 87.
The Shoreline Regional Park Community Fund receives property taxes on property within the Shoreline Community. The fund accounts for the revenues and expenditures of the Shoreline Community.
Revenues were $69.1 million for the fiscal year ended June 30, 2022, an increase of $16.2 million over the prior fiscal year. Revenues increased due to higher property taxes and developer fees collected for the Google Landings Office Development Project.
Expenditures were $26.8 million compared to $24.9 million in the prior fiscal year. Of this amount, $21.3 million was expended on general government and $3.9 million on culture and recreation, which are comparable to the prior fiscal year.
In addition, $21.5 million was transferred out for capital improvement projects and debt service payments. The fund balance as of June 30, 2022 of $76.1 million may be used only for expenditures of the Shoreline Community.
The Housing Fund accounts for fees paid by developers to prov ide for increasing and improving
the supply of extremely low‐, very low‐, low‐, and moderate‐income housing (affordable housing).
Revenues were $23.0 million for the fiscal year ended June 30, 2022, an increase of $11.9 million from the prior fiscal year. This was primarily due to higher development‐related fees related to the Google Landings Office Develop ment Project. The fund balance of $176.9 million is available for increasing the supply of affordable housing.
16 The General Capital Projects Fund accounts for all general capital improvements not funded from proprietary funds.
Revenues were a negative $9.1 million for the fiscal year ended June 30, 2022, a decrease of $11.5 million from the prior fiscal year, primarily due to decreased used of money and property revenue that resulted from the impact of fair‐value adjustments to the City’s investments upon the increase in interest rates toward the end of the year.
Expenditures
were $66.8 million, which was $37.7 million more than the prior fiscal year. These funds were expended on capital outlay projects, including: Plymouth Street Realignment Property Acquisition, Fire Department Fleet Replacement, South Whisman Park Construction, and Civic Center Infrastructure, Phase I. The fund balance of $272.1 million is available to fund capital projects.
The Park Land Dedication Capital Projects Fund accounts for revenues derived from fees on residential subdivisions used for park and recreation projects.
Revenues were $18.9 million for the fiscal year ended June 30, 2022, a decrease of $12.7 million from the prior fiscal year. The decrease was primarily due to decreased developer contributions.
There was no expenditure incurred in the current year. The fund balance of $79.7 million is available for park and recreation projects.
Proprietary Funds—The Cit
y’s proprietary funds statements provide the same type of information found in the government‐wide financial statements but in more detail.
At the end of the fiscal year, the unrestricted net positions for the Water, Wastewater, and Solid Waste Funds are $58.1 million, $51.0 million, and $15.0 million, respectively. The total increase in net position for the enterprise funds from the prior fiscal year is $19.1 million. The net operating income of the Water Fund ($4.2 million), Wastewater Fund ($5.3 million), and Solid Waste Fund ($2.4 million) increased by $2.4 million, $3.8 million, and $1.3 million, respectively, when compared to the prior year. The Water Fund’s increase is due to lower expenses resulting from the San Francisco Public Utilities Commissi
on waiving the City’s minimum water purchase
requirement due to drought water conservation mandates. The Wastewater Fund’s increase is due to higher service charge revenue and Solid Waste Fund’s increase is due to higher savings in operating expenditures. The internal service funds have an unrestricted net position of $35.2 million at June 30, 2022. Factors concerning the finances of the ente rprise funds have also
been addressed previously in the discussion of the City’s business‐type activities.
Custodial Funds—The City maintains custodial funds for fiduciary activities and assets held by the City in custodial capacity for the benefit of agencies outside of the City or employees. As of June 30, 2022, the assets of the custodial funds totaled $0.4 million, comparable to the prior year. 17 GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund differenc
es between the original Fiscal Year 2021‐22 budget and the final amended budget resulted in an increase of $2.2 million in budgeted revenue related to Other Revenues and Charges for Services and a $13.3 million increase in expenditure appropriations.
Approximately $7.9 million of the adjustment in expenditure appropriations is related to prio r‐ year encumbrances that carry forward at the beginning of the fiscal year as specified in the City Charter. An additional $1.2 million of appropriations was established for the payment for building inspection and fire plan checking contract services related to development activity, which are cost‐recovered by fees from developers. An additional $3.3 million of appropriations was established for the payment of compensated absences. The balance of adjustments was made midy
ear for various operational needs not anticipated during budget adoption and grants or reimbursements received during the fiscal year.
General Fund actual revenues are $30.0 million or 16.4% higher than the final amende d budget for the fiscal year. The variance is primarily due to higher‐than‐budgeted tax revenues, lease revenue upon the implementation of GASB 87, and other revenues. Actual expenditures for the General Fund are $29.4 million lower than the final amended budget for the fiscal year. Most of the departments’ expenditures are lower than budget due to salary and benefit savings incurred
from vacant positions as the City experienced higher‐than‐usual turnover driven by a considerable number of retirements and resignations. The effect of the higher revenues and the underutilization of appropriations contributed to the positive net change in fund balances compared to budget for the fiscal year.
CAPITAL ASSETS AND DE
BT ADMINISTRATION
Capital Assets
The City’s capital assets for its govern
mental and business‐type activities as of June 30, 2022 was $625.6 million (net of accumulated depreciation). Capital assets include land, leased assets, construction in progress, buildings, improvements other than buildings, machinery and equipment, and infrastructure. The total net increase in the City’s capital assets as of June 30, 2022 is $43.1 million or 7.4%.
18 The change in capital assets, net of depreciation, for the governmental and business‐type activities are as follows:
2022 2021 2022 2021 2022 2021
Land $ 138,782 110,311 220 220 139,002 110,531 Leased assets ‐ Land 6,549 ‐ ‐ ‐ 6,549 ‐ Construction in progress 80,481 61,465 21,793 17,859 102,274 79,324 Buildings 188,468 188,468 8,748 8,748 197,216 197,216 Improvements other than buildings 227,032 220,007 169,890 164,640 396,922 384,647 Machinery and equipment 39,144 41,540 8,655 8,516 47,799 50,056 Traffic signals 15,513 15,378 ‐ ‐ 15,513 15,378 Streetlights 10,942 10,535 ‐ ‐ 10,942 10,535 Bridges and culverts 18,440 18,440 ‐ ‐ 18,440 18,440 Sidewalks, curbs and gutters 116,041 115,170 ‐ ‐ 116,041 115,170 Streets and roads 284,304 278,714 ‐ ‐ 284,304 278,714 Less accumulated depreciation (598,025) (574,084) (111,341) (103,402) (709,366) (677,486) $ 527,671 485,944 97,965 96,581 625,636 582,525 Capital Assets
(Dollars in Thousands)
Governmental Activities Business ‐Type Activities Total Major capital asset activities during
the current fiscal year included the following:
• Total capital assets increased by $43.1 million due to a net increase in assets of $75.0 million, offset by a $31.9 million net increase in accumulated depreciation. • Construction in progress increased by $23.0 million. Some of the major projects worked on and/or comp
leted during the year included: Plymouth Street Realignment Property Acquisition, Fire Department Fleet Replacement, South Whisman Park Construction, and Civic Center Infrastructure, Phase I.
Additional information about the City’s capital assets is discussed in Note 6 to the financial statements.
19 Debt Administration
As of June 30, 2022, the City had $161.6 million of outstanding noncurrent liabilities relat ed to
governmental activities and $14.9 million related to business‐type activities, for a total of $176.5 million. Noncurrent liabilities outstanding as of June 30, 2022, with a comparison to prior year and the net change, are as follows:
2022 2021 Net Change
Revenue bonds $ 91,252 93,554 (2,302)
Compensated absences 11,260 12,765 (1,505)
Landfill containment 43,268 41,564 1,704
Claims liabilities 9,297 8,452 845
Lease liabilities 6,499 ‐ 6,499
Total governmental activities debt 161,576 156,335 5,241 Business‐type activities 14,916 16,221 (1,305) Total $ 176,492 172,556 3,936
Noncurrent Liabilities
(Dollars in Thousands)
The increase
s to noncurrent liabilities were primarily due to the addition of a lease in the current fiscal year upon the implementation of GASB 87 offset by the scheduled retirement of long‐term debt during the normal course of business.
The City Charter limits bonded indebtedness for General Obligation bonds to 15.0% of the total assessed valuation of all real and
personal property within the City. The City has no general obligation debt outstanding as of June 30, 2022 and has maintained its underlying “AAA” issuer credit rating from Standard & Poor’s since July 2014.
Additional information regarding the City’s noncurrent liabilities is discussed in Note 7 to the financial statements.
ECONOMIC FACTORS AND NEXT
YEAR’S BUDGET AND RATES
• The City’s revenues performed better than projected as the recovery from the COVID‐19 pandemic continued. Except for the Transit Occupancy Tax, major revenues are projected
to be higher and return to prepandemic levels.
• Overall, property taxes for the City are expected to increase in the upcoming fiscal year based on incr
eases in property taxes from new development, change in ownership, and the
2.0% increase in assessed value due to the positive California Consumer Price Index. 20 • Sales tax revenue is expected to be slightly lower than the current fiscal year. However, a moderate increase is forecasted for future years.
• Business License revenue is estimated to be about the same as the current fiscal year, and Utility Users Tax is projected to be about 8.0% higher than Fiscal Year 2021‐22, primarily from higher collections for energy ser
vices. Transient Occupancy Tax is projected to be slightly lower than the current year because business travel is still slowly recovering from the pandemic.
• Average increases in potable water, wastewater, and solid waste rates of 12.0%, 8.0%, and
6.0%, respectively, have been ado pted for Fiscal Year 2022‐23 to recover the costs of providing those services. All of the rate increases are effective starting July 1, 2022.
All of these factors were considered in preparing the City’s budget for Fiscal Year 2022‐23.
Although the level economy has stabilized from the past couple years, current developments around the world and recent inflation have contributed to increased uncertainty about the future of the economy. The City continues to promote sound fiscal practices and budget discipline to allow the City to be prepared for fiscal challenges that may arise in the upcoming years.
REQUESTS FOR INFORMATION
These financial statemen
ts are intended to provide residents, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be directed to the Finance and Administrative Services Department, 500 Castro Street, P.O. Box 7540, Mountain View, California, 94039‐7540, or [email protected].
CITY OF MOUNTAIN VIEW
Statement of Net Position
June 30, 2022
(Dollars in Thousands)
Business‐
Governmental type
Activities Activities Total
Assets:
Cash and investments 847,981$ 85,002 932,983 Restricted cash and investments 78,390 3,117 81,507 Receivables:
Accounts 3,282 15,296 18,578 Taxes 5,435 ‐ 5,435 Interest 3,198 483 3,681 Loans and notes 102,665 ‐ 102,665 Leases 794,487 ‐ 794,487 Internal balances (43,200) 43,200 ‐ Inventory 839 ‐ 839 Deposits and prepaid items 31,521 ‐ 31,521 Net OPEB asset 26,095 ‐ 26,095 Capital assets:
Nondepreciable 225,812 22,013 247,825 Depreciable, net of accumulated depreciatio
n 301,859 75,952 377,811 Total assets 2,378,364 245,063 2,623,427 Deferred outflows of resources:
Pension items 32,990 3,051 36,041 OPEB items 9,332 341 9,673 Total deferred outflows of resources 42,322 3,392 45,714 Liabilities:
Accounts payable and accrued liabilities 22,489 3,392 25,881 Interest payable 1,782 ‐ 1,782 Refundable deposits 7,147 478 7,625 Unearned revenue 39,048 ‐ 39,048 Noncurrent and other liabilities:
Due within one year:
Long‐term liabilities 6,932 1,473 8,405 Due in more than one year:
Long‐term liabilities 154,644 13,443 168,087 Net pension liability 116,174 12,536 128,710 Net OPEB liability ‐ 341 341 Total liabilities 348,216 31,663 379,879 Deferred inflows of resources:
Pension items 66,174 5,523 71,697 OPEB items 31,674 ‐ 31,674 Leases 781,366 ‐ 781,366 Total deferred inflows of resources 879,214 5,523 884,737 Net position:
Net investment in capital assets 502,737 87,218 589,955 Restricted for:
Capital projects 285,928 ‐ 285,928 Debt service 45 ‐ 45 Low and moderate income housing 189,548 ‐ 189,548 Shoreline Regional Park Community 76,062 ‐ 76,062 Grants and regulations 72,479 ‐ 72,479 Unrestricted 66,457 124,051 190,508 Total net position 1,193,256 $ 211,269 1,404,525 Primary Government
See accompanying notes to the financial statements. 21
CITY OF MOUNTAIN VIEW
Statement of Activities
For the Fiscal Year Ended June 30, 202
2 (Dollars in Thousands)
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Function/Program Activities:
Primary government:
Governmental activities:
General government 50,952 $ 59,868 6,497 150 Public safety 62,335 823 1,912 ‐ Public works 42,119 3,553 3,624 14,430 Community development 15,726 14,352 7,745 58,283 Culture and recreation 33,840 6,664 295 21,269 Interest on long‐term debt 4,179 ‐ ‐ ‐ Total governmental activities 209,151 85,260 20,073 94,132 Business‐type activities:
Water 32,425 36,373 353 6,086 Wastewater 22,359 27,347 193 3,379 Solid Waste 12,543 14,967 ‐ ‐ Total business‐type activities 67,327 78,687 546 9,465 Total primary government 276,478 $ 163,947 20,619 103,597
General revenues:
Property taxes
Sales taxes
Transient occupancy tax
Utility users tax
Nonregulatory franchise and business, unrestricted
Intergovernmental ‐ Not restricted to specific programs Investment income
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year, as previously reported Cumulative effect of change in accounting principles
Net position, beginning of year, as restated
Net position, end of year
Program Revenues
See accompanying notes to the financial statements. 22
Net (Expense) Revenue and Changes in Net Position
Business‐
Governmental type
Activities Activities Total
15,563 ‐ 15,563 (59,600) ‐ (59,600) (20,512) ‐ (20,512) 64,654 ‐ 64,654 (5,612) ‐ (5,612) (4,179) ‐ (4,179) (9,686) ‐ (9,686) ‐ 10,387 10,387 ‐ 8,560 8,560 ‐ 2,424 2,424 ‐ 21,371 21,371 (9,686) 21,371 11,685 128,861 ‐ 128,861 23,456 ‐ 23,456 4,437 ‐ 4,437 8,717 ‐ 8,717 11,784 ‐ 11,784 281 ‐ 281 (14,108) (2,230) (16,338) 47 (47) ‐ 163,475 (2,277) 161,198 153,789 19,094 172,883 1,041,672 192,175 1,233,847 (2,205) ‐ (2,205) 1,039,467 192,175 1,231,642 1,193,256$ 211,269 1,404,525 See accompanying notes to the financial statements. 23
CITY OF MOUNTAIN VIEW
Governmental Funds
Balance Sheet
June 30, 2022
(Dollars in Thousands)
Shoreline
Regional
Park
General Community Housing
Cash and investments 215,187 $ 80,585 100,059 Restricted cash and investments ‐ ‐ 4,714 Receivables:
Accounts 1,272 57 154 Taxes 5,435 ‐ ‐ Interest 1,054 588 388 Loans and notes 2,377 ‐ 72,323 Leases 794,487 ‐ ‐ Due from other funds 292 ‐ ‐ Inventory 767 ‐ ‐ Deposits and prepaid items 3,068 ‐ 10,844 Total assets 1,023,939 $ 81,230 188,482 Liabilities, deferred inflows of resource
s
and fund balances:
Accounts payable and accrued liabilities 11,592 $ 5,002 33 Due to other funds ‐ ‐ ‐ Refundable deposits 5,154 40 1,600 Unearned revenue 28,542 126 9,984 Advances from other funds ‐ ‐ ‐ Total liabilities 45,288 5,168 11,617 Leases 781,366 ‐ ‐ Nonspendable 835 ‐ ‐ Restricted 436 76,062 176,865 Committed 96,704 ‐ ‐ Assigned 5,920 ‐ ‐ Unassigned 93,390 ‐ ‐ Total fund balances 197,285 76,062 176,865 Total liabilities, deferred inflows of resources
and fund balances 1,023,939$ 81,230 188,482 Assets:
Liabilities:
Deferred inflows of resources:
Fund balances:
See accompanying notes to the financial statements. 24
Park Land
General Dedication Other Total
Capital Capital Governmental Governmental
Projects Projects Funds Funds
254,449 62,213 92,659 805,152 66,317 ‐ 6,510 77,541
140 ‐ 694 2,317 ‐ ‐ ‐ 5,435 ‐ 476 481 2,987 ‐ ‐ 27,965 102,665 ‐ ‐ ‐ 794,487 ‐ ‐ ‐ 292 ‐ ‐ 72 839 ‐ 17,000 609 31,521 320,906 79,689 128,990 1,823,236 5,609 ‐ 80 22,316 ‐ ‐ 292 292 ‐ ‐ 353 7,147 ‐ ‐ 396 39,048 43,200 ‐ ‐ 43,200 48,809 ‐ 1,121 112,003 ‐ ‐ ‐ 781,366 ‐ ‐ 72 907 272,097 79,689 91,730 696,879 ‐ ‐ 36,067 132,771 ‐ ‐ ‐ 5,920 ‐ ‐ ‐ 93,390 272,097 79,689 127,869 929,867 320,906 79,689 128,990 1,823,236 See accompanying notes to the financial statements. 25
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CITY OF MOUNTAIN VIEW
Reconciliation of the Balance Sheet of Governmental Funds to the Government‐wide Statement of Net Position ‐ Governmental Activities June 30, 2022
(Dollars in Thousands)
Fund balances ‐ total governmental funds 929,867$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets including leased assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 527,671 Internal service funds are used to charge the costs of management of 35,238
Interest payable on long‐term debt does not require the use of current (1,782)
Deferred outflows and inflows of resources for pension and OPEB Deferred outflows of resources 42,322
Deferred inflows of resources (97,848)
Noncurrent liabilities, including bonds payable, are not due Net pension liability (116,174)$
Net OPEB asset (liability) 26,095
Bonds and loans payable (91,252)
Lease liabilities (6,499)
Landfill containment (43,268)
Compensated absences (11,114) (242,212)
Net position of governmental activities 1,193,256 $
equipment maintenance and replacement, insurance, retirees' health plan and employee benefits plan and related billings to other City departments and individual funds. The assets and liabilities are included in governmental activities in the statement of net position.
financial resources and, therefore, interest payable is not accrued as a liability in the balance sheet of governmental funds.
items in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.
and payable in the current period and therefore are not reported in the governmental funds.
See accompanying notes to the financial statements. 27
CITY OF MOUNTAIN VIEW
Governmental Funds
Statement of Revenues, Expenditures, and
Changes in Fund Balance
s
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Shoreline
Regional
Park
General Communit
y Housing
Revenues:
Property taxes 72,256 $ 55,486 ‐ Sales taxes 23,456 ‐ ‐ Other taxes 19,431 ‐ ‐ Licenses, permits and fees 11,867 ‐ ‐ Fines and forfeitures 316 ‐ ‐ Use of money and property 37,672 (901) (1,690) Intergovernmental 8,072 ‐ ‐ Charges for services 26,520 76 150 Developer fees and contributions 1,223 14,428 24,396 Other 12,419 53 150 Total revenues 213,232 69,142 23,006 Expenditures:
Current:
General government 32,181 21,287 ‐ Public safety 74,924 90 ‐ Public works 20,093 1,126 ‐ Community development 14,086 289 959 Culture and recreation 23,253 3,913 ‐ Capital outlay 672 62 6,549 Debt service:
Principal ‐ ‐ 50 Interest and fiscal charges ‐ ‐ 106 Total expenditures 165,209 26,767 7,664 Excess (deficiency) of revenues
over (under) expenditures 48,023 42,375 15,342 Other financing sources (uses):
Lease financing ‐ ‐ 6,549 Transfers in 2,415 1,120 11,789 Transfers out (10,966) (21,537) (1,086) Total other financing sources (uses) (8,551) (20,417) 17,252 Net change in fund balances 39,472 21,958 32,594 Fund balances, beginning of year,
as previously reported 160,018 54,104 144,271 Cumulative effect of change in accounting principles (2,205) ‐ ‐ Fund balances, beginning of year, as restated 157,813 54,104 144,271 Fund balances, end of year 197,285$ 76,062 176,865 See accompanying notes to the financial statements. 28
Park Land
General Dedication Other Total
Capital Capital Governmental Governmental
Projects Projects Funds Funds
‐ ‐ 1,118 128,860 ‐ ‐ ‐ 23,456 ‐ ‐ 10,308 29,739 ‐ ‐ ‐ 11,867 ‐ ‐ ‐ 316 (12,994) (2,400) (1,328) 18,359 1,405 ‐ 12,602 22,079 ‐ ‐ 5,749 32,495 ‐ 21,269 24,269 85,585 2,537 ‐ 289 15,448 (9,052) 18,869 53,007 368,204 ‐ ‐ 137 53,605 ‐ ‐ 229 75,243 ‐ ‐ 26 21,245 ‐ ‐ 2,647 17,981 ‐ ‐ 3,418 30,584 66,799 ‐ 26 74,108 ‐ ‐ 2,085 2,135 ‐ ‐ 4,333 4,439 66,799 ‐ 12,901 279,340 (75,851) 18,869 40,106 88,864 ‐ ‐ ‐ 6,549 89,653 1,636 7,800 114,413 (16,308) (39,273) (19,383) (108,553) 73,345 (37,637) (11,583) 12,409 (2,506) (18,768) 28,523 101,273
274,603 98,457 99,346 830,799 ‐ ‐ ‐ (2,205) 274,603 98,457 99,346 828,594 272,097 79,689 127,869 929,867 See accompanying notes to the financial statements. 29
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CITY OF MOUNTAIN VIEW
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government‐wide Statement of Activities ‐ Governmental Activities For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Net change in fund balances ‐ total governmental funds 101,273 $ Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Capital assets additions 62,610 $
Donated assets received 1,244
Capital assets retirements (348)
Depreciation (28,325) 35,181
Revenues recognized in the governmental funds that were earned and recognized in previous years are reported as beginning net position in the statement of activities. Revenues earned in the current year that did not meet the revenue recognition criteria for governmental funds are reported as revenues in the statement of activities. (5,016)
Pension and OPEB contributions made subsequent to the measurement date are expenditures in the governmental funds, but reported as deferred outflows of resources in the government‐wide financial statements. 34,125 Pension and OPEB expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (2,838) Lease financing are reported as other financing sources and capital outlay in governmental funds and thus contribute to the change in fund balances.
However, lease financing change long‐term liabilities and capital assets in the statement of net position and do not affect the statement of activities.
Lease liabilities addition (6,549)
Lease assets addition 6,549 ‐
The repayment of the principal of long‐term debt and lease liabilities consume the current financial resources of governmental funds. 2,135 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of bond premium 217
Change in accrued interest payable 43
Change in landfill containment (1,704)
Change in compensated absences 1,509 65
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service funds is reported with governmental activities. (11,136) Change in net position of governmental activities 153,789$ See accompanying notes to the financial statements. 31
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CITY OF MOUNTAIN VIEW
General Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance ‐ Budget and Actual
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:
Property taxes 66,108 $ 66,108 72,256 6,148 Sales taxes 18,477 18,477 23,456 4,979 Other taxes 16,775 16,775 19,431 2,656 Licenses, permits and fees 14,168 14,168 11,867 (2,301) Fines and forfeitures 665 665 316 (349) Use of money and propert
y 27,140 27,140 37,672 10,532 Intergovernmental 8,930 8,930 8,072 (858) Charges for services 23,747 24,574 26,520 1,946 Developer fees and contributions 800 800 1,223 423 Other 4,215 5,608 12,419 6,811 Total revenues 181,025 183,245 213,232 29,987 Expenditures:
Current:
General government:
City council 424 445 256 189 City clerk 985 985 896 89 City attorney 2,625 2,841 2,309 532 City manager 9,095 10,184 5,378 4,806 Human services 3,298 6,805 6,445 360 Information technology 8,080 8,368 6,709 1,659 Finance and administrative services 14,174 14,706 10,188 4,518 Public safety:
Fire 29,691 30,808 30,709 99 Police 46,618 47,051 44,215 2,836 Public works 21,919 24,304 20,093 4,211 Community development 14,776 17,195 14,086 3,109 Culture and recreation:
Community services 19,480 19,784 17,147 2,637 Library services 7,138 7,469 6,106 1,363 Capital outlay 3,026 3,674 672 3,002 Total expenditures 181,329 194,619 165,209 29,410 Excess (deficiency) of revenues
over (under) expenditures (304) (11,374) 48,023 59,397 Other financing sources (uses):
Transfers in 1,931 1,931 2,415 484 Transfers out (8,573) (11,936) (10,966) 970 Total other financing sources (uses) (6,642) (10,005) (8,551) 1,454 Net change in fund balance (6,946)$ (21,379) 39,472 60,851 Fund balance, beginning of year,
as previously reported 160,018
Cumulative effect of change in accounting principles (2,205) Fund balance, beginning of year, as restated 157,813
Fund balance, end of year 197,285$
See accompanying notes to the financial statements. 33
CITY OF MOUNTAIN VIEW
Shoreline Regional Park Community Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance ‐ Budget and Actual
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:
Property taxes 49,074 $ 49,074 55,486 6,412 Use of money and propert
y 1,807 1,807 (901) (2,708) Charges for services 55 55 76 21 Developer fees and contributions ‐ ‐ 14,428 14,428 Other 34 34 53 19 Total revenues 50,970 50,970 69,142 18,172 Expenditures:
Current:
General government:
City attorney 10 20 6 14 Finance and administrative services 20,740 21,310 21,281 29 Public safety:
Fire 169 173 50 123 Police 40 40 40 ‐ Public works 1,378 1,440 1,126 314 Community development 536 537 289 248 Culture and recreation:
Community services 4,479 4,572 3,913 659 Capital outlay 67 67 62 5 Total expenditures 27,419 28,159 26,767 1,392 Excess of revenues over expenditures 23,551 22,811 42,375 19,564 Other financing sources (uses):
Transfers in ‐ ‐ 1,120 1,120 Transfers out (20,005) (21,540) (21,537) 3 Total other financing sources (uses) (20,005) (21,540) (20,417) 1,123 Net change in fund balance 3,546$ 1,271 21,958 20,687 Fund balance, beginning of year 54,104
Fund balance, end of year 76,062$
See accompanying notes to the financial statements. 34
CITY OF MOUNTAIN VIEW
Housing Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance ‐ Budget and Actual
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:
Use of money and propert
y 1,236$ 1,236 (1,690) (2,926) Charges for services ‐ ‐ 150 150 Developer fees and contributions ‐ ‐ 24,396 24,396 Other ‐ ‐ 150 150 Total revenues 1,236 1,236 23,006 21,770 Expenditures:
Current:
Community development 5,794 24,547 959 23,588 Capital outlay ‐ ‐ 6,549 (6,549) Debt service:
Principal ‐ ‐ 50 (50) Interest and fiscal charges ‐ ‐ 106 (106) Total expenditures 5,794 24,547 7,664 16,883 Excess (deficiency) of revenues
over (under) expenditures (4,558) (23,311) 15,342 38,653 Other financing uses:
Lease financing ‐ ‐ 6,549 6,549 Transfers in 624 624 11,789 11,165 Transfers out (1,086) (1,086) (1,086) ‐ Total other financing uses (462) (462) 17,252 17,714 Net change in fund balance (5,020)$ (23,773) 32,594 56,367 Fund balance, beginning of year 144,271
Fund balance, end of year 176,865$
See accompanying notes to the financial statements. 35
CITY OF MOUNTAIN VIEW
Proprietary Funds
Statement of Net Position
June 30, 2022
(Dollars in Thousands)
Water Wastewater Solid Waste
Assets:
Current assets:
Cash and investments 39,297 $ 30,793 14,912 Restricted cash and investments ‐ 3,117 ‐ Receivables:
Accounts 6,396 4,636 4,264 Interest 243 179 61 Due from other funds ‐ ‐ ‐ Total current assets 45,936 38,725 19,237 Advance to other funds 22,552 19,936 712 Capital assets:
Nondepreciable 13,107 8,056 850 Depreciable, net of accumulated depreciation 45,065 28,701 2,186 Total noncurrent assets 80,724 56,693 3,748 Total assets 126,660 95,418 22,985 Pension items 1,540 905 606 OPEB items 166 72 103 Total deferred outflows of resources 1,706 977 709 Liabilities:
Current liabilities:
Accounts payable and accrued liabilitie
s 1,889 40 1,463 Due to other funds ‐ ‐ ‐ Refundable deposits 478 ‐ ‐ Current portion of accrued compensated absences 76 65 43 Current portion of accrued self‐insurance costs ‐ ‐ ‐ Current portion of revenue bonds 460 ‐ ‐ Current portion of loans payable 250 579 ‐ Total current liabilities 3,153 684 1,506 Noncurrent liabilities:
Noncurrent portion of accrued compensated absences 375 285 208 Noncurrent portion of accrued self‐insurance costs ‐ ‐ ‐ Noncurrent portion of revenue bonds 3,235 ‐ ‐ Noncurrent portion of loans payable 1,500 7,840 ‐ Net pension liability 6,451 3,318 2,767 Net OPEB liability 166 72 103 Total liabilities 14,880 12,199 4,584 Pension items 2,696 1,713 1,114 Net position:
Net investment in capital assets 52,727 31,455 3,036 Unrestricted 58,063 51,028 14,960 Total net position 110,790$ 82,483 17,996 Business‐type Activities ‐ Enterprise Funds
Noncurrent assets:
Deferred outflows of resources:
Deferred inflows of resources:
See accompanying notes to the financial statements. 36
Business‐type Governmental
Activities ‐ Activities ‐
Enterprise Funds Internal
Total Service Funds
85,002 42,829
3,117 849
15,296 965
483 211
‐ 546
103,898 45,400
43,200 ‐
22,013 ‐
75,952 ‐
141,165 ‐
245,063 45,400
3,051 ‐
341 ‐
3,392 ‐
3,392 173
‐ 546
478 ‐
184 24
‐ 3,180
460 ‐
829 ‐
5,343 3,923
868 122
‐ 6,117
3,235 ‐
9,340 ‐
12,536 ‐
341 ‐
31,663 10,162
5,523 ‐
87,218 ‐
124,051 35,238
211,269 35,238
See accompanying notes to the financial statements. 37
CITY OF MOUNTAIN VIEW
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Water Wastewater Solid Waste
Operating revenues:
Charges for services 34,618$ 26,582 14,621 Other 1,755 765 346 Total operating revenues 36,373 27,347 14,967 Operating expenses:
Salaries and related expenses 6,049 3,390 2,436 Insurance claims and premiums ‐ ‐ ‐ Cost of sales and services 17,957 12,739 7,430 General and administrative 3,501 2,944 2,248 Depreciation 4,649 2,993 429 Total operating expenses 32,156 22,066 12,543 Operating income (loss) 4,217 5,281 2,424 Nonoperating revenues (expenses):
Investment income (962) (870) (398) Interest expense (233) (291) ‐ Intergovernmental revenue 353 193 ‐ Loss on disposal of capital assets (36) (2) ‐ Total nonoperating revenues (expenses) (878) (970) (398) Income (loss) before contributions and transfers 3,339 4,311 2,026 Capital contributions ‐ developer fees 5,587 2,365 ‐ Capital contributions ‐ other 499 1,014 ‐ Transfers in 392 305 65 Transfers out (417) (230) (162) Change in net position 9,400 7,765 1,929 Net position, beginning of year 101,390 74,718 16,067 Net position, end of year 110,790$ 82,483 17,996 Business‐type Activities ‐ Enterprise Funds
See accompanying notes to the financial statements. 38
Business‐type Governmental
Activities ‐ Activities ‐
Enterprise Funds Internal
Total Service Funds
75,821 12,115
2,866 1,222
78,687 13,337
11,875 6,941
‐ 5,855
38,126 ‐
8,693 4,322
8,071 3
66,765 17,121
11,922 (3,784)
(2,230) (1,539)
(524) ‐
546 ‐
(38) ‐
(2,246) (1,539)
9,676 (5,323)
7,952 ‐
1,513 ‐
762 3,308
(809) (9,121)
19,094 (11,136)
192,175 46,374
211,269 35,238
See accompanying notes to the financial statements. 39
CITY OF MOUNTAIN VIEW
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Water Wastewater Solid Waste
Cash flows from operating activities:
Cash receipts from customers 34,503 $ 26,476 14,464 Cash paid to suppliers for goods and services (23,576) (15,691) (9,476) Cash paid to employees for services (7,114) (4,076) (2,872) Claims paid ‐ ‐ ‐ Other receipts 1,853 765 346 Net cash provided by (used in) operating activities 5,666 7,474 2,462 Cash flows from noncapital financing activities
Transfers in 392 305 65 Transfers out (417) (230) (162) Advances received from other funds ‐ ‐ 215 Advances paid to other funds (127) (2,458) ‐ Intergovernmental revenue received 353 193 ‐ Net cash provided by (used in) noncapital
financing activities 201 (2,190) 118 Cash flows from capital and related financing activities:
Principal payment on capital debt (440) ‐ ‐ Principal payment on loan payable (300) ‐ ‐ Principal payment on direct financing arrangement ‐ (560) ‐ Interest paid (185) (293) ‐ Acquisition of capital assets (4,098) (3,297) (585) Contributions from developers 5,587 2,365 ‐ Net cash provided by (used in) capital and
related financing activities 564 (1,785) (585) Cash flows from investing activities:
Interest received (loss) (981) (887) (400) Net increase (decrease) in cash and cash equivalents 5,450 2,612 1,595 Cash and cash equivalents, beginning of year 33,847 31,298 13,317 Cash and cash equivalents, end of year 39,297$ 33,910 14,912
Reconciliation of cash and cash equivalents:
Cash and investments 39,297$ 30,793 14,912 Restricted cash and investments ‐ 3,117 ‐ Total cash and cash equivalents 39,297$ 33,910 14,912 Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities:
Operating income (loss) 4,217$ 5,281 2,424 Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 4,649 2,993 429 Changes in assets and liabilities:
Accounts receivable (115) (106) (157) Accounts payable and accrued liabilities (2,118) (8) 202 Refundable deposits 98 ‐ ‐ Accrued compensated absences (7) (40) (8) Accrued self‐insurance costs ‐ ‐ ‐ Deferred outflows of resources ‐ pension items 262 80 85 Deferred inflows of resources ‐ pension items 2,696 1,713 1,114 Net pension liability (4,016) (2,439) (1,627) Deferred outflows of resources ‐ OPEB items 12 25 (49) Net OPEB liability (12) (25) 49 Net cash provided by (used in) operating activities 5,666 $ 7,474 2,462 Supplemental disclosure of noncash capital and related
financing activities:
Receipt of capital assets contributions 499$ 1,014 ‐ Business‐type Activities ‐ Enterprise Funds
See accompanying notes to the financial statements. 40
Business‐type Governmental
Activities ‐ Activities ‐
Enterprise Funds Internal
Total Service Funds
75,443 12,372
(48,743) (7,927)
(14,062) (6,937)
‐ (1,307)
2,964 ‐
15,602 (3,799)
762 3,308
(809) (9,121)
215 ‐
(2,585) ‐
546 ‐
(1,871) (5,813)
(440) ‐
(300) ‐
(560) ‐
(478) ‐
(7,980) ‐
7,952 ‐
(1,806) ‐
(2,268) (1,533)
9,657 (11,145)
78,462 54,823
88,119 43,678
85,002 42,829
3,117 849
88,119 43,678
11,922 (3,784)
8,071 3
(378) (965)
(1,924) 98
98 ‐
(55) 4
‐ 845
427 ‐
5,523 ‐
(8,082) ‐
(12) ‐
12 ‐
15,602 (3,799)
1,513 ‐
See accompanying notes to the financial statements. 41
CITY OF MOUNTAIN VIEW
Custodial Funds
Statement of Fiduciary Net Position
June 30, 2022
(Dollars in Thousands)
Assets:
Cash and investments 38 $
Restricted cash and investments 403
Total assets 441
Restricted for others 441 $
Net Position:
See accompanying notes to the financial statements. 42
CITY OF MOUNTAIN VIEW
Custodial Funds
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Additions:
Fees and others collected 522 $
Distribution to others 587
Change in net position (65)
506
441$
Deductions:
Net position, beginning of year
Net position, end of year
See accompanying notes to the financial statements. 43
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
45 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Mountain View (City) was incorporated in 1902 and is a charter city, having had its charter granted by the State of California in 1952. The City operates under the Council‐Manager form of government and provides the following services: public safety (police, fire, and paramedic), public works, utilities (water, wastewater, a nd solid waste), community devel opment, cultural and recreation services and administration and support services.
A. Reporting Entity
The accompanying basic financial statements present the financial activities of the City, which is the primary government presented, along with the financial activities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial statements. The City’s component units, which are described below, are all blended.
The Mountain View Shoreline Regional Park Community (Shoreline Community) i s a s e p a r a t e government entity created for the purpose of developing approximately 1,550 acres of bayfront lands. The Shoreline Community’s governing board is the same as the City and the City’s management has operational respo nsibility for the Shoreline Com munity. Its financial activities have been blended in the accompanying financial statements in the Shoreline Regional Park Community Special Revenue Fund and the nonmajor debt service fu nds. Separate financial statements for the Shoreline Community are also included as a component of the City’s Annual Comprehensive Financial Report.
The City of Mountain View Capital Improvements Financing Authority (Financing Authority) is a separate government entity whose purpose is to assist with the financing or refinancing of certain public capital improvements within the City. The Financing Authority’s governing board is the same as the City, the Financing Authority provides services solely t o the City, and a financial benefit/burden relationship exists between the City and the Financing Authority. Its financial activities have been blended in the accompanying financial statements in the nonmajor debt service funds. Separate financial statements for the Financing Authority are not required and therefore, not issued.
B. Basis of Presentation
The City’s basic financial state ments are prepared in conformit y with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for esta blishing accounting and financial reporting standards followed by governmental entities. These standards require that the financial statements described below be presented.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
46 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Government‐wide Statements ‐ The Statement of Net Position and the Statement of Activitie s display information about the primary government (the City and its component units). These s t a t e m e n t s i n c l u d e t h e f i n a n c i a l a c t i v i t i e s o f t h e o v e r a l l C i t y government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities.
These statements distinguish between the governmental and business‐type activities of the City.
Governmental activities generally are financed through taxes, i ntergovernmental revenues and other nonexchange transactions. Business‐type activities are fi nanced in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direc t expenses and program revenues for each segment of the business‐type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a p a r t i c u l a r f u n c t i o n . P r o g r a m revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that arise from mandatory and volu ntary nonexchange transactions with other governments, organizations, or individuals that are restricted for use in a particular program, and (c) grants and contributions of capital assets or resources that are restricted for capital purposes. Revenues that are not classified as program r evenues, including all taxes, are presented as general revenues.
Fund Financial Statements ‐ The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. Separate statements for each fund c a t e g o r y ‐ g o v e r n m e n t a l , p r o p r i e t a r y , a n d f i d u c i a r y ‐ a r e p r e s ented. The emphasis of fund financial statements is on major individual governmental and en terprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as contributions and investment income, result from nonexc hange transactions or ancillary activities.
C. Major Funds
Major funds are defined as funds that have either assets combined with deferred outflow of resources, liabilities combined with deferred inflow of resources, revenues or expenditures/expenses equal to 10.0 percent of their fund‐type total and 5.0 percent of the grand total of governmental and enterprise funds. Major governmental and business‐type funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund‐type. The General Fund is always a major fund, and the City may select ot her funds it believes should be presented as major funds.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
47 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City reports major governmental funds in the basic financial statements as follows:
General Fund ‐ This is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounte d for in another fund.
Shoreline Regional Park Community Fund (Special Revenue) ‐ This fund receives property tax revenues on properties within the Shoreline Community. The fund accounts for the revenues and expenditures of the Shoreline Community.
Housing Fund (Special Revenue) ‐ This fund accounts for fees paid by developers to provide for increasing and improving the supply of extremely low, very low, low, and moderate income housing (affordable housing).
General Capital Projects Fund (Capital Projects) ‐ This fund accounts for a ll capital improvement projects activities not funded from proprietary funds.
Park Land Dedication Capital Projects Fund (Capital Projects) ‐ This fund accounts for revenues derived from fees on residential subdivisions used for park and recreation projects.
The City reports all of its enterprise funds as major funds in the accompanying financial statements:
Water Fund – This fund accounts for the revenues and expenses related to the operation, maintenance and capital outlay required to supply, distribute and meter water. The City has agreements with the San Francisco Public Utilities Commission a nd the Santa Clara Valley Water District for the supply of wholesale water.
Wastewater Fund – This fund accounts for the revenues and expenses related to t he operation, maintenance and capital outlay required to provide wastewater s ervices. The City has an agreement with the City of Palo Alto to purchase treatment capacity at the Palo Alto Regional Water Quality Control Plant (Treatment Plant).
Solid Waste Fund – This fund accounts for the revenues and expenses related to disposal services, recycling operations, other solid waste operations, capital outlay and certain costs related to maintenance of the closed landfill sites. Collection operations are provided by an outside private contractor. The City has an agreement with the Cities of Palo Alto and Sunnyvale for disposal transfer capacity at the Sunnyvale Materials and Recovery Trans fer (SMaRT ®) Station.
The City also reports the following fund types:
Internal Service funds – These funds account for equipment maintenance and replacement, workers’ compensation insurance, unemployment self‐insurance, liability self‐insurance, retirees’ health plan, and employee benefits plan, all of which are provided to other funds on a cost‐ reimbursement basis.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
48 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Custodial funds – These funds are fiduciary funds used to report fiduciary act ivities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private purpose trust funds. These include custodial balances and activities of the labor unions, flexible benefits, and Center for Performing Arts. The financial activities of these funds are excluded from the government‐wide financial statements, but are presented in separate fiduciary fund financial statements.
D. Basis of Accounting
T h e g o v e r n m e n t ‐ w i d e , p r o p r i e t a r y f u n d , a n d f i d u c i a r y f u n d f i n a ncial statements are reported using the economic resources measurement focus and the full accrual basis of accounting .
Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues, except sales taxes, reported in the governmental funds to be available if the revenues are collected within sixty days after fiscal year end. A ninety days availability period is used for sales t axes in order to include the State of California (State) final distribution of sales taxes revenue for the fiscal year. Expenditures are recorded when the related fund liability is incurred, except fo r principal and interest on long‐ term debt, claims and judgments, landfill containment costs and compensated absences, which are recognized as expenditures to the extent they have matured and are due and payable at year end. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds from long‐term debt issuance and leases financing are reported as other financing sources.
Non‐exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements and donations.
On the accrual basis, revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligibility requirements have been sat isfied.
Those revenues susceptible to accrual are property taxes, sales taxes, certain intergovernmental revenues, transient occupancy taxes, utility user taxes, earned grant entitlements, special assessments due within the current fiscal year and investment r evenue. All other revenue items are considered to be measurable and available only when c ash is received.
Grant revenues are recognized in the fiscal year in which all eligibility requirements are met.
Under the terms of grant agreements, the City may fund certain programs with a combination of cost‐reimbursement grants, categorical block grants and general revenues. Thus, both restricted and unrestricted net position may be available to fi nance program expenditures.
The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
49 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Certain indirect costs are included in program expenses reported for individual functions and activities.
As a general rule, the effect of interfund activity has been el iminated in the preparation of the government‐wide financial statements. Exceptions to this general rule are charges between the government’s business‐type activities and various other functions of the government. Elimination of these charges would distort the direct costs and program rev enues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods or services, 2) operating grants and contributions and 3) capit al grants and contributions, including special assessments. Internally dedicated resources a nd taxes are reported as general revenues rather than as program revenues.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s princi pal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of connection fees intended to recover the cost of connecting new customers to the system.
Operating expenses for enterprise funds and internal service fu nds include the cost of sales and services, administrative expenses and depreciation on capit al assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
E. Inventory
Inventories are valued at cost (first in, first out). Inventories of the General Fund consist of expendable supplies held for consumption. The cost is recorded as expenditures at the time individual inventory items are consumed. Inventories of the Sho reline Golf Links Nonmajor Special Revenue Fund consist of merchandise held for resale to consumers. The cost is recorded as expenditures at the time individual inventory items are sold.
F. Property Taxes
The County of Santa Clara (County) assesses properties and it bills, collects and distributes property taxes to the City. The County remits to the City the entire amo unt levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on July 1 for the fiscal year.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
50 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Secured property tax becomes a lien on January 1 and is due in two installments, on November 1 and February 1. It becomes delinquent after December 10 and April 10, respectively.
Unsecured property tax bills are distributed in July and are due upon receipt, and become delinquent after August 31. Collection of delinquent accounts is the responsibility of the County, which retains all penalties.
The term “unsecured” refers to taxes on personal property other t h a n r e a l e s t a t e , l a n d a n d buildings and are secured by liens on the property owner. Property tax revenues are recognized by the City in the fiscal year they are levied, provided they become available as defined above.
G. Compensated Absences
Compensated absences, representing earned but unused vacation, sick leave pay and related costs, are reported in the Statement of Net Position. All compensated absences and related costs are accrued when incurred in the government‐wide and proprietary fund financial statements.
A liability for these amounts is reported in the governmental f unds only if they become due and payable. The City uses the vesting method for the calculation o f compensated absences.
H. Deferred Outflows and Inflows of Resources
In addition to assets, the Statement of Net Position and Balance Sheets 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 Net Position and Balance Sheets 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.
I. Pension and Other Postemployment Benefits (OPEB) Items
For purposes of measuring the net pension liability and net OPE B liability, deferred outflows/inflows of resources related to pension and OPEB, pens ion and OPEB expenses, information about the fiduciary net position of the City’s Pens ion and OPEB plans, and additions to/deductions from the plans’ fiduciary net positions have been determined on the same basis as they are reported by the California Public Employees’ Retirement System (CalPERS) and the California Employer’s Retiree Benefit Trust (CERBT) Fund Program, respectively. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. CalPERS plan member contributions are recognized i n t h e p e r i o d i n w h i c h t h e c o n t r i b u t i o n s a r e d u e . I n v e s t m e n t s are reported at fair value. The governmental activities’ share of net pension liability and net OPEB liability are typically liquidated by the General Fund.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
51 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. Effects of New GASB Pronouncements
As of July 1, 2021, the City implemented the following GASB Statements:
In June 2017, the GASB issued Statement No. 87, Leases. The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The purpose of this Statement is to increase the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classifi ed as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accoun ting based on the foundational principle that leases are financings of the right to use an und erlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right‐to‐use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of i nformation about governments’ leasing activities. Implementation of this statement resulted in the reduction of $2.2 million for the fund balance of the General Fund as of June 30, 2021, from $160.0 million to $157.8 million, and the reduction of $2.2 million fo r the net position of governmental activities as of June 30, 2021, from $1,041.7 million to $1,039.5 million. The $2.2 million restated amount is comprised of the addition of lease receivables of $805.4 million, addition of deferred inflow of resources of $810.5 million, and reduction of unearned revenue of $2.9 million. Further discussion on the City’s leases is included in Note 11.
In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. The objectives of this statement are 1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period, and 2) to si mplify accounting for interest cost incurred before the end of a construction period. Implementation of this statement did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2022.
In January 2020, the GASB issued Statement No. 92, Omnibus 2020 . The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GAS B Statements.
I m p l e m e n t a t i o n o f t h i s s t a t e m e n t d i d n o t h a v e a s i g n i f i c a n t i m pact on the City’s financial statements for the fiscal year ended June 30, 2022.
In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates .
The objective of this Statement is to address those and other a ccounting and financial reporting implications that result from the replacement of an i nterbank offered rate.
I m p l e m e n t a t i o n o f t h i s s t a t e m e n t d i d n o t h a v e a s i g n i f i c a n t i m pact on the City’s financial statements for the fiscal year ended June 30, 2022.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
52 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Se ction 457 Deferred C o m p e n s a t i o n P l a n s – a n A m e n d m e n t o f G A S B S t a t e m e n t s N o . 1 4 a n d No. 84, and a Supersession of GASB Statement No 32 . The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not h ave a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 p l a n s ) t h a t m e e t t h e definition of a pension plan and for benefits provided through those plans. Implementation of this statement did not have a significant impact on the City ’s financial statements for the fiscal year ended June 30, 2022.
In April 2022, the GASB issued Statement No. 99, Omnibus 2022. T h e o b j e c t i v e s o f t h i s statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (a) p ractice issues that been identified during implementation and application of certain GAS B Statements and (b) accounting and financial reporting for financial guarantees. The requirements related to the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statements No. 53 and No. 63 are effective upon issuance. Implementation of these requirements did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2022.
The City is currently analyzing its accounting practices to identify the potential impact on the financial statements for the GASB statements as follows:
In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in pract ice associated with 1) commitme nts extended by issuers, 2) arrangements associated with conduit debt obligations, and 3) r elated note disclosure. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2023.
In March 2020, the GASB issued Statement No. 94, Public‐Private and Public‐Public Partnerships and Availability Payment Arrangements . The objective of this Statement is to improve financial reporting by addressing issues related to pub lic‐private and public‐public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs ). As defined in this Statement, an APA is an arrangement in which a government compe nsates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlyi
ng nonfinancial asset for a period of time in an exchange or exchange‐like transaction.
The requirements of this statement are effective for the City’s fiscal year ending June 30, 2023.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
53 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In May 2020, the GASB issued Statement No. 96, Subscription‐Based Information Technology Arrangements. This Statement provides guidance on the accounting and finan cial reporting for subscription‐based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) es tablishes that a SBITA results in a right‐to‐use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2023.
In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The requirements related to leases, public‐private partnerships (PPPs), and SBITAs are effective for the City’s fiscal year ending June 30, 2023. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Sta tement No. 53 are effective for the City’s fiscal year ending June 30, 2024.
In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections – An Amendment of GASB Statement No. 62 . The primary objective of this statement is to enhance accounting and financial reporting requirements for acc ounting changes and error corrections to provide more understandable, reliable, relevant consistent, and comparable information for making decisions or assessing accountability. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2024.
In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of t h i s s t a t e m e n t i s t o b e t t e r m e e t t h e i n f o r m a t i o n n e e d s o f f i n a ncial statement users by updating the recognition and measurement guidance for compensat ed absences. That objective is achieved by aligning the recognition and measureme nt guidance under a unified model and by amending certain previously required disclosures. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2025.
K. Use of Estimates
The preparation of financial statements in conformity with acco unting principles generally accepted in the Unit ed St ate s of Am er ica (GAAP) requires management to make estimates and assumptions that affect the rep orted amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
54 NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING
A. Budgets and Budgetary Accounting
The City adopts an annual budget on or before June 30 for the ensuing fiscal year for the General Fund and all Special Revenue Funds except for the Deferred Asse ssments Fund.
No annual budgets are adopted for the Debt Service Funds. Repay ment of the debt is authorized by the adoption of the indenture provisions for the life of the debt.
The Storm Drain Construction and Park Land Dedication Capital Projects Funds are budgeted annually. All other Capital Projects Funds are budgeted on a project basis. Such budgets are based on a project time frame, rather than a fiscal year operating ti me frame, whereby unused appropriations continue until project completion.
Budget appropriations become effective on each July 1. The City Council may amend the budget during the fiscal year. The legal level of budgetary control h as been established at the fund and department level. Appropriations lapse at the end of the fisca l year to the extent they have not been expended or encumbered.
All Governmental Fund Type annual budgets are presented on a ba sis consistent with the basic financial statements prepared in accordance with GAAP.
Budgeted revenue amounts represent the original budget modified by adjustments authorized during the fiscal year. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the fiscal year and reap propriated amounts for encumbrances, grants, and donations outstanding at the end of each prior fiscal year.
The City Council must approve appropriation increases to departmental budgets; however, management may transfer Council‐approved budgeted amounts withi n fund and departmental expenditure classifications. Judgments, settlements and certain accrual entries are not subject to budgetary control and expenditures exceeding budget due to t hese items do not constitute a violation of budget policy or control. Supplemental appropriations were approved during the course of the fiscal year as needed.
B. Encumbrance Accounting
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that por tion of the applicable appropriation. Encumbrance accounting is employed as an extensi on of formal budgetary integration. Encumbrances outstanding at fiscal year end are automatically reappropriated for inclusion in the following fiscal year’s budget.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
55 NOTE 3 – CASH AND INVESTMENTS
The City pools cash from all sources and all funds, except Rest ricted Cash and Investments, so the pool of funds can be invested consistent with goals for safety and liquidity, while maximizing yield. Cash is pooled so individual funds can make expenditures at any time.
A. Policies
For custodial credit risk, California Law requires banks and savings and loan institutions to pledge government securities with a fair value of 110.0 percent of the City’s cash on deposit, or first trust deed mortgage notes with a fair value of 150.0 percent of the deposit, as collateral for these deposits. Under California Law, this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of gen eral creditors of the institution.
The City invests in individual investments and in investment po ols. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the trust department of a bank as the custodian of certain City managed investments, regardless of their form.
The City’s investments are carried at fair value. The carrying value of these investments are periodically adjusted to reflect their fair value at each fiscal y e a r e n d a n d t h e e f f e c t s o f t h e s e adjustments are included as income or expense for that fiscal year.
Investment income is allocated among funds on the basis of average daily cash and investment balances in each fund, unless there are specific legal or contractual requirements to do otherwise.
Cash and investments with an original maturity of three months or less are considered to be cash equivalents in the proprietary fund Statements of Cash Flows because these assets are highly liquid and are expended to liquidate liabilities arising during the fiscal year.
B. Classification
Cash and investments are classified in the financial statements, based on whether or not their use is restricted under the terms of debt instruments. Investme nts are carried at fair value as of June 30, 2022. Cash and investments are as follows (dollars in thousands):
Governmental Business‐Type Fiduciary
Activities Activities Funds Total
Cash and investments 847,981$ 85,002 38 933,021 Restricted cash and investments 78,390 3,117 403 81,910 Total cash and investments 926,371$ 88,119 441 1,014,931
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
56 NOTE 3 – CASH AND INVESTMENTS (Continued)
Cash and investments as of June 30, 2022 consist of the following (dollars in thousands):
Cash on hand 14$
Deposits with financial institutions 9,011
Investments 1,005,906
Total cash and investments 1,014,931$
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The California Government Code and the City’s Investment Policy authorize the investment types in the following table, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maximum maturities are not exceeded. The table also identifies certain provisions of the California Government Code, or the City’s Investment Policy where the City’s Investment Policy is more restrictive, that addresses interest rate risk, credit risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s Investment Policy.
The City’s Investment Policy and the California Government Code allow the City to invest in the following:
Authorized Investment Type
Maximum
Maturi ty
Maximum
Percentage
of Portfolio
Maximum
Investment
in One Issuer
U.S. Treasury Obligations 5 years (A) No limit
U.S. Agency Securities 5 years 50% 25%
U.S. Agency Mortgage‐backed Securities 5 years 20% 25%
Callable Securities (Treasuries, Agencies, Corp. Notes) 5 years 1 0% 5% Commercial Paper 180 days 15% 5%
Banker's Acceptances 180 days 20% 5%
Medium‐term Notes Issued by U.S. Corporations 5 years 15% 5% Mutual Funds Invested in U.S Government Securities N/A 10% 5% Certificates of Deposit:
FDIC Insured Time Deposits 2 years 10% 5%
Collateralized Time Deposits 2 years 10% 5%
Negotiable Time Deposits 2 years 10% 5%
Municipal Bonds Issued by the City or any of its
Component Units (B) (B) (B)
Local Agency Investment Fund (LAIF) N/A 20% N/A
Supranational Securities 5 years 10% 5%
(A) The polic y re quire s a minimum of 25 percent of the tota l portfolio to be inve ste d in U. S. Treasury Obligations.
(B) The policy allows only municipal bonds issued by the City of Mountain View or its component units at limits and maturities as approved by the City Council.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
57 NOTE 3 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. 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 investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements, rather than the general provisions of the Californi a Government Code or the City’s Investment Policy. These debt agreements do not address interes t rate, credit, and concentration of credit risks.
The investment types that are authorized for investments held by bond trustee are as follows:
Authorized Investment Type
Maximum
Maturity
U.S. Treasury Obligations No Limit
U.S. Agency Securities No Limit
Deposit Accounts, Federal Funds and Banker's
Acceptances 360 days
FDIC Insured Certificates of Deposit No Limit
Commercial Paper 270 days
Money Market Mutual Funds No Li mi t
State and Local Agency Bonds No Limit
Insurer Approved Investment Contracts No Limit
Insurer Approved Other Forms of Investments
Including Repurchase Agreements No Limit
Local Agency Investment Fund (LAIF) No Limit
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so 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. The City monitors the interest rate risk inherent in its portfolio by measuring the modified duration (modified duration is a measure of a fixed income’s cash flows using present values, weighted for cash flows as a percentage of the investments’ full price) of its portfolio. The City monitors interest rate risk inherent in investments held by the trustee by using specific identification.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
58 NOTE 3 – CASH AND INVESTMENTS (Continued)
The City’s interest rate risk by investment type and fair value is as follows (dollars in thousands):
Fair Value Modified Duration
Amount (in years)
Held by the City:
LAIF 148,275$ N/A
U.S. Treasury Obligations 461,041 2.23 U.S. Agency Securities 202,956 2.11 Medium‐Term Notes 69,172 2.60 Supranational Securities 42,583 2.56 Municipal Bonds ‐ Shoreline Regional Park Community
2011 and 2018 Revenue Bonds 8,816 1.50 Money Market Mutual Funds 250 N/A The modified duration of the City's portfolio as of
June 30, 2022 1.88
The modified duration of the City's portfolio as of
June 30, 2022, excluding Shoreline Regional Park
Community 2011 and 2018 Revenue Bonds 1.89
Held by Bond Trustee:
Money Market Mutual Funds 16,970 N/A U.S. Treasury Obligations 55,843 * Total investments 1,005,906$
* Maturity date: $12,487 on 9/30/2022, $12,963 on 12/15/2022, $11,318 on 3/31/2023, and $19,075 on 6/15/2023.
Investment Type
Through the City’s Investments Policy, the City manages its exp osure to fair value losses arising from increasing interest rates by limiting the modified duration of its investment portfolio to within 15.0 percent of the modified duration of a benchmark por tfolio as defined in the Investment Policy. As of June 30, 2022, the allowed modified du ration ranged from 1.60 to 2.16 years and the actual is within this range.
Investments in municipal bonds shown above represent the City’s investment in the Shoreline Regional Park Community 2011 and 2018 Revenue Bonds. The balan ce as of June 30, 2022, is stated at amortized cost, which approximates fair value.
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance available for withdrawal i s based on the accounting records maintained by the State, which are recorded on an amortized cost basis. LAIF is part of the State’s Pooled Money Investment Account (PMIA). The total balance of the PMIA is approximately $234.5 billion as of June 30, 2022. Of that amount, 98.12 percent was invested in nonderivative financial products and 1.88 percent in structured notes and asset backed securities. As of June 30, 2022, LAIF had an average maturity of 311 days.
Mutual Money Market Funds investments are available for withdrawal on demand and as of June 30, 2022, have an average maturity of less than 60 days.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
59 NOTE 3 – CASH AND INVESTMENTS (Continued)
F. Credit Risk
Generally, credit risk is the risk that an issuer of an investm ent will not fulfill its obligation to the holder of the investment. This i s measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s Investment Policy is to apply the prudent investor’s standard in managing the overall portfolio. The standard states that investments shall not be made for speculation but shall be made with judgme nt and care, which investors of prudence, discretion and intelligence exercise considering the safety of principal, liquidity, and return on investment in this priority order. As of June 30, 2022, the City’s investment in Money Market Mutual Funds, and Supranational Securities are rated AAA by Standard & Poor’s. U.S.
A g e n c y S e c u r i t i e s a r e r a t e d A A b y S t a n d a r d & P o o r ’ s . T h e M e d i um‐Term Notes are rated between A and AA by Standard & Poor’s. The U.S. Treasury Obliga tions are exempt from credit rating disclosure. The Municipal Bonds ‐ Shoreline Regional Park Community 2011 and 2018 Revenue Bonds are rated A+ by Standard & Poor’s. The Local Agency Investment Fund were not rated as of June 30, 2022.
G. Concentration of Credit Risk
The City’s Investment Policy regarding the amount that can be invested in any one issuer is stipulated by the California Government Code. However, the City is required to disclose investments that represent a concentration of 5.0 percent or more of investments in any one issuer other than U.S. Treasury obligations, money market mutua l funds and external investment pools. As of June 30, 2022, those investments held by the City consisted of the following (dollars in thousands):
Issuer Investment Type Amount
Federal National Mortgage Association Federal Agency Securities 7 7,351$ Federal Home Loan Bank Federal Agency Securities 70,982 Federal Home Loan Mortgage Association Federal Agency Securities 54,623
H. Fair Value Hierarchy
The City categorizes its fair value measurements within the fai r value hierarchy established by generally accepted accounting principles. The hierarchy is bas ed on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. All of the investments are measured using l e v e l 2 i n p u t s , e x c e p t f o r investments in LAIF and money market mutual funds, which are not subject to the fair value hierarchy. Investments measured using level 2 inputs are valued using prices determined by the use of matrix pricing techniques maintained by the pricing vendors for these investments. Matrix pricing is used to value investments based on the investments’ relationship to benchmark quoted prices.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
60 NOTE 4 – LOANS AND NOTES RECEIVABLE
As of June 30, 2022, the City’s loans and notes receivable are as follows (dollars in thousands):
CDBG Rehabilitation 95$
Mid‐Peninsula Support network 55
Ginzton Terrace 892
Project Match 132
Central Park Apartments 3,583
Sierra Vista Apartments Affordance Housing 238
Stoney Pine Charities 124
HomeSafe 100
San Antonio Place LP 5,465
Tyrella Gardens 1,215
Bill Wilson Center 133
San Veron Park 779
SR Fountains LP 1,816
Franklin Street Family Apartments 12,547
El Camino West Affordable Studios 3,452
Rengstorff Affordable Housing 8,166
Palo Alto Housing 8,000
East Evelyn Affordable Housing 21,700
North Shoreline Housing 8,157
El Camino Real 18,059
Housing Trust Silicon Valley 5,000
MV Lot 12 Housing Partners 580
Employee Homebuyer Program 2,377
Total 102,665$
The City engages in programs designed to encourage construction or improvement of housing for persons with extremely low to moderate income or other such projects. Under these programs, grants or loans a r e p r o v i d e d u n d e r f a v o r a b l e t e r m s t o h o m e o w n e r s o r d e v e l o p e r s who agree to spend these funds in accordance with the City’s terms. The City does not expect to collect these loans in t h e n e a r t e r m , a n d most of the loan terms are deferred to the future. Any proceeds collected are restricted by grant requirements and thus these balances have been offset by a restriction of fund balance in the fund
financial statements. Due to the nature of the repayment structures of the City’s housing loans, the City is not accruing interest on these loans. Interest revenue is recognized upon receipt.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
61 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)
These loan programs are funded by Community Development Block G rants (CDBG) funds, Home Investment Partnership Act (HOME) grant funds, Housing Fund, General Fund, and former Mountain View Revitalization Authority (Authority). With the dissolution of the Authority effective January 31, 2012, the City became the Housing Successor Agency. The balances of the l oans were transferred to the Housing Successor Special Revenue Fund (Housing Successor) of the City.
A. CDBG Rehabilitation
The City administers a housing rehabilitation loan program initially funded with CDBG funds. Under this program, individuals with incomes below a stated level are eligible to receive low‐interest loans for rehabilitation work on their home. These loans are secured by deeds of trust, which may be subordinated with the prior written consent of the City. The loan repayments may be amortized over the life of the loans, deferred to maturity or a combination of both. There are three such loans outstanding totaling $95,000 as of June 30, 2022.
B. Mid‐Peninsula Support Network
On December 23, 1980, the City loaned $55,000 to Mid‐Peninsula Support Network for the acquisition and rehabilitation of a residential structure for the purpose of providing temporary shelter for battered parents and their children. The loan was f unded by CDBG funds a n d becomes payable upon demand by the City upon failure to comply with the terms of the loan agreement. The loan carries a 12.0 percent annual interest rate and shall accrue beginning 30 days following the date of demand. The loan is collateralized by a first deed of trust. As of June 30, 2022, the amount of the loan outstanding is $55,000.
C. Ginzton Terrace
On December 11, 1991, the City loaned $380,000 to the Mid‐Penin sula Housing Coalition (Coalition) for predevelopment and land acquisition costs related to the development of a 107‐ unit affordable senior housing complex located at 375 Oaktree Drive. On May 1, 1993, the City amended the loan agreement and loaned the Coalition an additional $215,000 for the purpose of paying park and recreation fees required prior to occupancy of the land. On February 12, 1996, excess funds not used were returned to the City in the amount of $78,000. The loan balance of $517,000 was funded by CDBG funds.
On May 21, 2013, the City
approved another modification to extend the loan term to May 31, 2038, reducing the annual simple interest rate from 6.0 percent to 3.0 percent effective June 1, 2013, and restructured the repayment to be based on 50.0 percent of the residual receipts. The loan balance and accrued interest will become payable on May 31 , 2038.
On April 21, 2015, the City awarded $340,000 in CDBG funds and $185,000 in HOME funds for rehabilitation activities. The CDBG and HOME loans are to be repaid by January 31, 2066 and January 31, 2071, respectively, with zero percent interest.
During Fiscal Year 2021‐22, $114,000 was repaid and as of June 30, 2022, the total outstanding amount of all loans related to Ginzton Terrace is $892,000.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
62 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)
D. Project Match
On May 1, 1997, the City loaned $132,000 to Project Match for the acquisition of the house located at 1675 South Wolfe Road, Sunnyvale, to provide affordable housing for low‐income seniors. The loan was funded by HOME grant funds. The loan is to be repaid over a 30‐year period at 3.0 percent annual simple interest. Interest and prin cipal amounts are deferred.
The loan is collateralized by a second deed of trust. As of June 30, 2022, the amount of the loan outstanding is $132,000.
E. Central Park Apartments
On July 1, 1998, the City and Ho using Successor funds loaned $2.2 million to the Coalition for the acquisition and rehabilitation of a 149‐unit apartment complex k n o w n a s C e n t r a l P a r k Apartments at 90 Sierra Vista Avenue to be used to provide housing for very‐low‐ to low‐ income seniors. The entire project was initially funded by thre e loans: $388,000 from Housing set aside funds to be repaid over nine years, commencin g in Fiscal Year 1998‐99 and bearing 3.0 percent annual interest; $1.2 million of CDBG funds t o b e r e p a i d o v e r 3 6 y e a r s commencing in Fiscal Year 2012‐13 and bearing 3.0 percent annual interest; and $612,000 from HOME grant funds to be repaid over 21 years commencing in Fisca l Year 2004‐05 and bearing
3.0 percent annual interest.
On August 19, 2004, the City loaned $498,000 to the Coalition for the rehabilitation of the
Central Park Apartments. The loan was funded by CDBG funds to be repaid over 16 years commencing in Fiscal Year 2017‐18 and bearing 1.2 percent annual interest.
On April 17, 2006, the City approved a $748,000 loan to the Coa lition for the construction of
the New Central Park Apartments. The loan was funded by CDBG funds with zero percent interest and repayment is deferred until January 1, 2054, or upon the repayment of the $1.3 million HOME loans described below.
On June 1, 2007, the City approved a loan of $1.3 million to fu nd the development cost of 104 apartments. The loan was funded by HOME grant funds with zero percent interest and repayment is deferred until the later of January 1, 2041, or upon repayment of the $851,000 Housing Successor’s loan. During Fiscal Year 2021‐22, $315,000 was repaid and as of June 30, 2022, the outstanding HOME loan balance is $494,000.
On July 24, 2007, the City approved a $405,000 loan to the Coalition for the development of the New Central Park Apartments. The loan was funded by CDBG funds with zero percent interest and final payment is deferred until July 1, 2063. As of June 3 0, 2022, the amount of this CDBG loan is $367,000.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
63 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)
On April 23, 2013, the City approved an additional loan of $275,000 from CDBG funds to the Coalition. The loan was used to upgrade the utilities and install energy‐efficient hot water heaters in the original 149‐unit apartmen t complex. The loan bears annu al interest at 1.5 percent, with repayment deferred until calendar year 2034 or upon repayment of the $498,000 CDBG loan.
As of June 30, 2022, the total outstanding balance of all loans related to Central Park apartments is $3.6 million.
F. Sierra Vista Apartment Affordable Housing
On February 1, 1999, the City approved to loan up to $100,000 to Sierra Vista I Limited Partnership/Charities Housing Corporation for the development and renovation of a 34‐unit affordable apartment complex to low and moderate income families to be located at 1909 Hackett Avenue. An additional loan in the amount of $255,000 was approved on January 16, 2007. The loans were funded by CDBG funds with 6.0 percent inte r e s t a n d a t e r m o f September 2019 and January 2032, respectively.
On September 24, 2013, the City approved an amendment to the lo a n a g r e e m e n t s w i t h
Charities Housing Corporation. This CDBG loan funding will bear interest at 3.3 percent, compound annually on September 1. The term of the loan will be 57 years, maturing on October 1, 2070. As of June 30, 2022, the amount of the loans outstanding is $238,000.
G. Stoney Pine Charities
On August 16, 2000, the City loaned $124,000 to the Stoney Pine Charities Housing Corporation for the construction of a 23‐unit apartment complex at 212 North Mathilda Avenue and 271‐283 West California Avenue, Sunnyvale, to provide affordable housing for very low income persons with developmental disabilities. The loan was funded by $9,000 of CDBG funds and $115,000 of HOME grant funds. The loans bear sim ple interest at 3.0 percent, but repayment of interest and principal is deferred fo r 40 years. The loans and accumulated interest remain deferred unless during the term of the loan, or after 40 years, the apartments no longer meet the affordability test for very low income persons with developmental disabilities, or if the property is sold or transferred. The loan is collateralized
by a second deed of trust. As of June 30, 2022, the amount of the loan outstanding is $124,000.
H. HomeSafe
On February 21, 2001, the City loaned $100,000 to the HomeSafe Santa Clara L.P. for the construction of a 25‐unit apartment complex at 611 El Camino Re al, Santa Clara, to provide affordable housing for women and children who are victi ms of domestic violence. The loan was funded by $100,000 of HOME grant funds. The loan bears simple interest at 3.0 percent, but repayment of interest and principal is deferred for 55 years unless during the term of the loan, the apartments no longer meet the affordability te st for very‐low to low‐income victims of domestic violence, or if the property is sold or tra nsferred. The loan is collateralized by a first deed of trust. As of June 30, 2022, the amount of the loan outstanding is $100,000.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
64 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)
I. San Antonio Place LP (Charities Housing Development Corporation)
On April 25, 2002, the City approved an agreement to loan up to $5.3 million to Charities Housing Development Corporation (Corporation) for development o f an efficiency studios housing project to provide affordable housing for very‐low to l ow‐income persons. On July 1, 2004, the Corporation assigned to the San Antonio Place LP all o f t h e r i g h t s a n d obligations under the agreements. The loan amount was amended to loan up to $5.5 million on December 1, 2006, which would be funded by $2.5 million of CDBG funds, $2.2 million of HOME grant funds and $809,000 of t he Housing Successor funds. The loan is provided at zero percent interest with repayment deferred for 55 years unle ss the San Antonio Place LP no longer meets the terms and conditions of the agreement. As of June 30, 2022, the amount of the loan outstanding is $5.5 million.
J. Tyrella Gardens
On May 20, 2003, the City approved to loan up to $390,000 to Mi d‐Peninsula Tyrella Associates for the development and renovation of an affordable apartment complex to low and moderate income families to be located at 449 Tyrella Avenue. T he loan was funded by CDBG funds with 3.0 percent interest and a term of 55 years.
On April 22, 2014, the City awarded Mid‐Peninsula Tyrella Associates additional loans of $172,000 from CDBG funds and $653,000 from HOME funds to rehabilitate 56 existing rental units. The loan agreement for CDBG funds w as executed on July 1, 2015, with 3.0 percent simple interest and is due in 50 years. The loan agreement from HOME funds was executed on July 1, 2015, with
3.0 percent simple interest and is due in 43 years.
As of June 30, 2022, the total
outstanding balance of all loans related to Tyrella Gardens is $1.2 million.
K. Bill Wilson Center
On December 5, 2008, the City loaned $133,000 to The Bill Wilso n Center, a nonprofit corporation, for the acquisition and operation of a youth and c ounseling services shelter. The loan was funded by CDBG funds and is due in 30 years and has a term of 3.0 percent simple i n t e r e s t . A s o f J u n e 3 0 , 2 0 2 2 , t h e a m o u n t o f t h e l o a n o u t s t a n d ing is $133,000.
L. San Veron Park
On December 1, 2009, the City amended an agreement with San Veron Corporation to loan up to $898,000 to renovate one hundred twenty‐four affordable Town home units for very‐low and low‐ income households. The loan was funded by HOME grant funds , however, the construction did not occur until Fiscal Year 2012‐13. On July 1, 2013, the City approved and authorized the provision of increasing the loan amount to $1.1 million, and to be drawn from the HOME grant funds. During Fiscal Year 2021‐22, $308,000 was repaid and as of June 30, 2022, the amount of the loan outstanding is $779,000.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
65 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)
M. SR Fountains LP
On December 1, 2009, the City approved to loan up to $255,000 to SR Fountains Limited Partnership for the rehabilitation of 124 existing units at The Fountains Apartments property located at 2005 San Ramon Avenue. The loan was funded by HOME grant funds with zero percent interest and repayment is deferred until December 1, 2019. In 2010 and 2012, the City approved an additional $466,000 and $305,000, respectively, loa n to SR Fountains Limited Partnership.
On April 19, 2016, the City authorized an additional $675,000 l oan from CDBG funds. This loan bears no interest and repayment is deferred until December 31, 2026. Subsequently on May 2, 2017, the City awarded an additional $450,000 in CDBG funding, increasing this deferred loan to a total of $1.1 million. An amendment to the loan agreement was entered on June 1, 2018, with no changes to the key loan terms.
During Fiscal Year 2021‐22, $206,000 was repaid and as of June 30, 2022, the total outstanding balance of all loans related to SR Fountains LP is $1.8 million.
N. Franklin Street Family Apartments
On April 18, 2011, the City approved an agreement to loan up to $1.3 million to ROEM Development Corporation (ROEM) to acquire a long‐term ground lease of property known as 135 Franklin Street. The loan was funded by CDBG funds at 4.0 p ercent interest and a term of 55 years.
On April 18, 2011, the City approved an agreement to loan up to $10.6 million to ROEM for the development of an affordable family rental housing development to be located at the property mentioned above. The loan was funded by Housing Successor funds with 4.0 percent interest and a term of 55 years.
On April 18, 2011, the City approved an agreement to loan up to $646,000 from the Housing fund to ROEM for the same project mentioned above. The loan was funded with 4.0 percent interest and a term of 55 years.
On November 1, 2011, the full lo an was assigned to Franklin Str eet Family Apartments. As of June 30, 2022, the total outstanding balance of all loans related to Franklin Street Family
Apartments is $12.5 million.
O. El Camino West Affordable Studios
On January 22, 2013, the City approved an agreement to loan up to $3.5 million to First Community Housing to acquire 0.48 acre of property located at 1581‐1585 El Camino Real West.
The loan was funded by HOME grant funds and Housing funds for t he amounts of $920,000 and $2.5 million, respectively. The term of the loan is 3.0 percent interest for 55 years. As of June 30, 2022, the amount of the loan outstanding is $3.5 mi llion.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
66 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)
P. Rengstorff Affordable Housing
On June 3, 2013, the City approved an agreement to loan up to $9.0 million to ROEM for the development of an affordable family rental housing development to be located at 819 North Rengstorff Avenue. The loan was funded by Housing funds w ith 3.0 percent interest and a term of 55 years. As of June 30, 2022, the amount of the loa n outstanding is $8.2 million.
Q. Palo Alto Housing
On December 20, 2015, the City entered into a predevelopment funding agreement with Palo Alto Housing Corporation for predevelopment activities at 1701 West El Camino Real. This prefunding loan of $1.0 million was funded from Housing funds. On April 3 , 2017, the City entered into a permanent loan agreement with 1701 ECR, LP where the outstandin g principal balance of the predevelopment loan was rolled over into the permanent loan. T he approved total amount of loan funded by Housing funds for this housing development was $ 8.0 million, with 3.0 percent simple interest rate commencing upon City’s issuance of a final certificate of occupancy. As of June 30, 2022, the amount of the loan outstanding is $8.0 million.
R. East Evelyn Affordable Housing
On May 31, 2016, the City entered into a loan agreement with Evelyn Avenue Family Apartments, LP for an affordable housing development at 779 East Evelyn Ave nue. The total loan amount is $21.7 million and was funded by Housing funds. The loan has a 55‐year term with 3.0 percent simple interest rate. As of June 30, 2022, the amount of the loan outstanding is $21.7 million.
S. North Shoreline Housing
On April 1, 2019, the City entered into an agreement to loan up to $8.2 million to MP Shorebreeze Associates, L.P. for the development of an affordable multi‐family residential rental development to be located at 460 North Shoreline Boulevard. The $8.2 million loan was funded by HOME grant funds, CDBG grants funds, and Housing funds for the amounts of $421,000, $96,000, and $7.6 million, respectively. The term of the loan i s 3.0 percent interest for 55 years. As of June 30, 2022, the amount of the loan outstanding is $8.2 million.
T. El Camino Real
On June 1, 2020, the City entered into a loan agreement with 950 El Camino Real, L.P. (950 ECR) for an affordable housing development at 950 West El Camino Rea l. The total loan amount is $22.7 million and was funded by Housing funds. The loan has a 55‐year term with 3.0 percent simple interest rate. As of June 30, 2022, the amount of the loan outstanding is $18.1 million.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
67 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)
During the year ended June 30, 2020, 950 ECR entered into a loan agreement with a third party.
The City’s loan is subordinate to the third party loan. 950 ECR, the third party, and the City entered into a subordination agreement in which the City is required to holdback loan proceeds of $4.7 million and deposit into a segregated bank account. As of June 30, 2022, the holdback balance of $4.7 million was held in a segregated bank account and reported as restricted cash and investments.
U. Housing Trust Silicon Valley
On June 20, 2019, the City entered into an assignment and assumption agreement with LinkedIn Corporation and accepted the assignment of a promissory note of $10.0 million with Housing Trust Silicon Valley. LinkedIn Corporation assigned the promissory note to the City as payment for the housing impact fees related to its development projects . The note has a final maturity date of April 30, 2022, with 1.5 percent interest rate payable semi‐annually. During Fiscal Year 2021‐22, the outstanding loan balance of $10.0 million was paid off.
On May 26, 2022, the City entered into an assignment and assump tion agreement with Google LLC and accepted the assignment of a promissory note of $5.0 million with Housing Trust Silicon Valley. Google LLC assigned the p romissory note to the City as payment for the housing impact fees related to its development projects. The note has a final maturity date of January 31, 2025, with 1.5 percent interest rate payable semi‐annually. As of June 30, 2022, the amount of the loan outstanding is $5.0 million and is considered unearned.
V. MV Lot 12 Housing Partners
On March 2, 2022, the City entered into a predevelopment loan ag r e e m e n t w i t h M V L o t 1 2 Housing Partners, L.P. for funding of predevelopment activities o n a 1 . 5 ‐ a c r e r e a l p r o p e r t y bounded by California, Bryant, and Mercy Streets. The loan was funded by Housing funds, and the term of the loan is 3.0 percent simple interest and matures on the earlier of i) March 2, 2026, and ii) the date of closing for any construction/permanent loan provided by the City. As of June 30, 2022, the amount of the loan outstanding is $580,000.
W. Employee Homebuyer Program
The City has an Employee Homebuyer Program to provide home buying and relocation assistance to eligible City employees. The program was funded by General F und and the notes have terms o f t h i r t y y e a r s a n d i n t e r e s t b a s e d o n a p p l i c a b l e f e d e r a l r a t e . P a y m e n t i s d e d u c t e d f r o m t h e e m p l o y e e ’ s b i w e e k l y p a y c h e c k . A s o f J u n e 3 0 , 2 0 2 2 , t h e r e a r e two employee loans and the outstanding balance is $2.4 million.
NOTE 5 – INTERFUND TRANSACTIONS
A. Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to allocate resources from the fund that receives them to the fund where they will be spent without a requirement for repayme nt. Less often, a transfer may
be made to open or close a fund.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
68 NOTE 5 – INTERFUND TRANSACTIONS (Continued)
Transfers between funds during the fiscal year ended June 30, 2022, are as follows (dollars in thousands):
Funds Re ce iving T ransfe rs Funds Making T ransfe rs
Amount
Transferred
Funding
Purpose
General Fund Shoreline Regional Park Community 89$ C Housing 7 C
General Capital Projects 484 B
Nonmajor Governmental 1,615 C
Water 220 C
2,415
Shoreline Regional Park Community General Capital Projects 1,120 B Housing General Fund 654 C
General Capital Projects 11,135 B
11,789
General Capital Projects General Fund 7,858 C Shoreline Regional Park Community 14,905 C
Housing 1,076 C
Park Land Dedication Capital Projects 39,273 C Nonmajor Governmental 17,541 C
Internal Service 9,000 C
89,653
Park Land Dedication Capital Projects General Capital Projects 1,636 B Nonma j or Governmenta l Genera l Fund 107 C Shorel i ne Regi onal Park Communi ty 6,416 A General Capital Projects 1,277 B
7,800
Wa ter Genera l Ca pi ta l Proj ects 331 B Internal Service 61 C
392
Wa s tewa ter Genera l Ca pi ta l Proj ects 296 B Internal Service 9 C
305
Sol i d Wa s te Genera l Ca pi ta l Proj ects 14 B Internal Service 51 C
65 Internal Service Funds General Fund 2,347 C Shorel i ne Regi onal Park Communi ty 127 C Housing 3 C
General Capital Projects 15 B
Nonmajor Governmental 227 C
Water 197 C
Was tewater 230 C
Solid Waste 162 C
3,308
Total Interfund Transfers 118,483$
The reasons for these transfers are as follows:
A. To fund debt service paym ents.
B. To transfer remaining balances on completed capital improvement projects, i nter est back to original funding source, and other funds.
C. Recu rrin g transfers for capital, operating costs, or equipm ent replacem ent.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
69 NOTE 5 – INTERFUND TRANSACTIONS (Continued)
B. Current Interfund Balances
Current interfund balances arise in the normal course of busine ss and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2022, the Mobile Home Rent Stabilization Nonmajor Special Revenue Fund owed General Fund $292,000 while the Retirees’ Health Plan Internal Service Fund owed Equipment Maintenance & Replacement I n t e r n a l S e r v i c e F u n d $546,000.
C. Interfund Advances
Advances are not expected to be r epaid within the next fiscal y ear. As part of the City’s capital projects budgeting and funding process, resources from enterprise funds are advanced to the General Capital Projects Fund where the project costs are budge ted for and incurred. These advances are reduced as funds are expended on enterprise fund projects. Any unspent advances will be repaid to the enterprise fund upon the completion of th e projects. As of June 30, 2022, the General Capital Projects Fund has outstanding advances of $ 22.6 million, $19.9 million, and $712,000 from the Water, Wastewater, and Solid Waste enterprise funds, respectively.
D. Internal Balances
Internal balances are presented only in the government‐wide financial statements. They represent the net receivables and payables remaining after the elimination of all such balances within governmental and business‐type activities.
NOTE 6 – CAPITAL ASSETS
All capital assets, including intangible assets, are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets , donated works of art and similar items, and capital assets received in a service concession arrangement are valued at their acquisition value. The City defines capital assets as assets with an initial individual cos t of more than $100,000 for land and infrastructure, $25,000 for buildings and improvements other than buildings, and $5,000 for others, and an estimated useful life in excess of two years.
Depreciation is provided using the straight‐line method, which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each fiscal year until the asset is fully depreciated. The City has assigned the useful lives to capital assets as follows:
Buildings 25 to 50 years
Improvements other than buildings 5 to 50 years
Machinery and equipment 3 to 20 years
Traffic signals 20 years
Streetlights 50 years
Bridges and culverts 60 years
Sidewalks, curbs, and gutters 40 years
Streets and roads 40 years
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
70 NOTE 6 – CAPITAL ASSETS (Continued)
Major outlays for capital assets and improvements are capitalized as projects are constructed.
A. Capital Asset Activities
C a p i t a l a s s e t s a c t i v i t y f o r t h e f i s c a l y e a r e n d e d J u n e 3 0 , 2 0 2 2, is as follows (dollars in thousands):
Balance Balance
June 30, 2021 Additions Retirements Transfers June 30, 2022 Governmental activities
Capi tal ass ets not bei ng depreci ated:
Land $ 110,311 28,471 ‐ ‐ 138,782 Lease assets ‐ land (Note 11) ‐ 6 ,549 ‐ ‐ 6,549 Construction in progress 61,465 32,770 ‐ (13,754) 80,481 Total capi tal as s ets not bei ng depreci ated 171,776 67,790 ‐ (13,754) 225,812 Capi tal ass ets bei ng depreci ated:
Buildings 188,468 ‐ ‐ ‐ 188,468 Improvements other than buildings 220,007 ‐ (60) 7,085 227,032 Machinery and equipment 41,540 1,635 (4,031) ‐ 39,144 Traffic signals 15,378 ‐ (46) 181 15,513 Streetlights 10,535 109 (20) 318 10,942 Bridges and culverts 18,440 ‐ ‐ ‐ 18,440 Sidewalks, curbs and gutters 115,170 605 (229) 495 116,041 Streets and roads 278,714 264 (349) 5,675 284,304 Total capi tal as s ets bei ng depreci ated 888,252 2,613 (4,735) 13,754 899,884 Less accumulated depreciation for:
Buildings (100,131) (5,158) ‐ ‐ (105,289) Improvements other than buildings (168,643) (9,123) ‐ ‐ (177,766) Machinery and equipment (30,023) (2,964) 3,959 ‐ (29,028) Traffic signals (8,363) (714) ‐ ‐ (9,077) Streetlights (6,997) (93) ‐ ‐ (7,090) Bridges and culverts (6,185) (309) ‐ ‐ (6,494) Sidewalks, curbs and gutters (76,327) (2,795) 166 ‐ (78,956) Streets and roads (177,415) (7,172) 262 ‐ (184,325) T ot al accum ulat e d de pre ciat ion (574,084) (28,328) 4,387 ‐ (598,025) Net capi tal as sets bei ng depreci ated 314,168 (25,715) (348) 13,754 301,859 Governmental activities capital assets, net 485,944$ 42,075 (348) ‐ 527,671
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
71 NOTE 6 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2021 Additions Retirements Transfers June 30, 2022 Business‐type activities
Capital assets not being depreciated:
Land $ 220 ‐ ‐ ‐ 220 Construction in progress 17,859 7,801 ‐ (3, 867) 21,793 Total capi tal as s ets not bei ng depreci ated 18,079 7,801 ‐ (3, 867) 22,013 Capital assets being depreciated:
Buildings 8,748 ‐ ‐ ‐ 8,748 Improvements other than buildings 164,640 1,513 (121) 3,858 169,890 Machinery and equipment 8,516 179 (49) 9 8,655 Total capital assets being depreciated 181,904 1,692 (170) 3,867 187,293 Less accumulated depreciation for:
Buildings (8,543) (14) ‐ ‐ (8,557) Improvements other than buildings (88,612) (7,687) 83 ‐ (96,216) Machinery and equipment (6,247) (370) 49 ‐ (6,568) Total accumulated depreciation (103,402) (8,071) 132 ‐ (111,341) Net capi tal as sets bei ng depreci ated 78,502 (6,379) (38) 3,867 75,952 Business‐type activities capital asse ts, net 96,581$ 1,422 (38) ‐ 97,965
B. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function for the fiscal year ended June 30, 2022, are as follows (dollars in thousands):
Governmental Activities:
General government 2,092 $
Public safety 1,749
Public works 16,430
Community development 335
Culture and recreation 7,719
Internal services funds 3
Total 28,328 $
Business‐type Activities:
Water 4,649$
Wastewater 2,993
Solid Waste 429
Total 8,071$
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
72 NOTE 6 – CAPITAL ASSETS (Continued)
C. Construction Commitments
The City has active construction projects that include land; improvements other than buildings; buildings; infrastructure; and water, wastewater, and solid waste improvements. Commitments for construction, as of June 30, 2022, are as follows (dollars in thousands):
Spent Remaining
to Date Commitment
Governmental activities:
Land ‐ $ 59
Improvements other than buildings 53,668 9,753
Buildings 6,042 24,266
Infrastructure 20,771 12,031
Total governmental activities 80,481 $ 46,109
Business‐type activities:
Water projects 12,900 $ 2,507
Wastewater projects 8,043 966
Solid Waste projects 850 122
Total business‐type activities 21,793 $ 3,595
Commitments are funded from 1) revenues received directly by the capital projects fund and 2) general fund, special revenue fund and enterprise fund revenues transferred to the capital projects fund.
D. Joint Use Open Space and Recreational Facilities at a Future School Site
The Los Altos School District (LASD) intended to acquire an app roximately 11.65‐acre site (Property) within the City for the construction of a new school facility. Of the total site, 9.65‐acre of the property (School Site) will be retained by LASD to develop as a school site and for joint use r e c r e a t i o n a l p u r p o s e s w i t h t h e C i t y . T h e r e m a i n i n g 2 . 0 ‐ a c r e o p e n s p a c e ( O p e n S p a c e P a r k ) i s planned to be developed into a community park and recreational facilities. On December 11, 2018, the City Council authorized a contribution of $43.0 milli on toward the site acquisition, of which $23.0 million is for the School Site and $20.0 million is for the Open Space Park.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
73 NOTE 6 – CAPITAL ASSETS (Continued)
On July 16, 2019, the City executed a funding and joint use agr eement with LASD outlining the City’s involvement in the development of the School Site and the opportunities for use of certain joint use recreational facilities during non‐school days and no n‐school hours serving the community. During the year ended June 30, 2020, LASD acquired the Property and the City contributed $23.0 million to LASD.
On November 19, 2019, the City entered into a property transfer agreement where LASD agrees to transfer the title of the Open Space Park to the City upon the acquisition of the Property and the completion of pre‐transfer due diligence activities. As of June 30, 2022, pre‐transfer due diligence activities are not completed and the $20.0 million pa yment made by the City for the Open Space Park was reported as deposits and prepaid items.
NOTE 7 – NONCURRENT LIABILITIES
The City generally incurs long‐term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt. The City’s debt issues and other liability transactions are summarized below and discussed in detail thereafter.
A. Composition and Changes
Noncurrent liabilities activities for the fiscal year ended Jun e 30, 2022, are as follows (dollars in thousands):
Original Due
Issue Balance Balance Wit hin
Amount June 30, 2021 Additions Retirements June 30, 2022 One Year Governmental Activities:
Revenue Bonds:
Shoreline Regional Park Community
2011 Revenue Refunding Bonds
2.0% to 5.75%, due Fiscal Year 2040‐41 $ 39,030 23,880 ‐ (2,085) 21,795 695 Shoreline Regional Park Community
2018 Revenue Bonds Series A
5.0%, due Fiscal Year 2048‐49 53,485 53,485 ‐ ‐ 53,485 ‐ Add unamortized premium 6,416 5,874 ‐ (217) 5,657 217 Subtotal 2018 Revenue Bonds Series A 59,901 59,359 ‐ (217) 59,142 217 Shoreline Regional Park Community
2018 Revenue Bonds Series B
3.36% to 4.24%, due Fiscal Year 2031‐32 10,315 10,315 ‐ ‐ 10,315 920 Total Revenue Bonds 109,246 93,554 ‐ (2,302) 91,252 1,832 Compensated Absences ‐ 12,765 10 (1, 515) 11,260 1,877 Landfill Containment ‐ 41,564 1,704 ‐ 43,268 ‐ Lease Liabilities (Note 11) ‐ ‐ 6,549 (50) 6,499 43 Claims liabilities ‐ 8,452 2,152 (1,30 7) 9,297 3,180 Total governmental activities $ 109,246 156,335 10,415 (5,174) 161,5 76 6,932
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
74 NOTE 7 – NONCURRENT LIABILITIES (Continued)
Original Due Wit hin
Issue Balance Balance One
Amount June 30, 2021 Additions Retirements June 30, 2022 Year Business‐type activities:
Water Revenue Bonds .
2004 Series A
3.0%‐4.5%, due Fiscal Year 2028‐29 9,700 $ 4,135 ‐ (440) 3,695 460 City of Palo Alto Loan
0%, due Fiscal Year 2028‐29 6,000 2,400 ‐ (300) 2,100 300 Less unamortized discount (1,000) (400) ‐ 50 (350) (50) Wastewater Direct Financing Arrangement
3.4%, due Fiscal Year 2033‐34 10,100 8,979 ‐ (560) 8,419 579 Compensated Absences ‐ 1,107 95 (150) 1,052 184 Total business‐type activities 24,800$ 16,221 95 (1,400) 14,916 1,473
B. Descriptions of Noncurrent Liabilities
2011 Revenue Bonds Shoreline Regional Park Community ‐ On July 19, 2011, the Shoreline Community issued $39.0 million of 2011 Revenue Bonds, Series A. Proceeds from the bonds were used to call the outstanding Shoreline Community’s Tax Allocation Bonds, 1996 Series A and provide funds to acquire and construct certain capital improvements of benefit to the Shoreline Community. The 2011 Bonds are special obligations of the Shoreline Community and are secured by a portion of all taxes levied upon all taxable p roperty within the Shoreline Community. Principal payments are payable annually on August 1 and interest payments semi‐ annually on August 1 and February 1 from property tax revenues generated within the Shoreline Community. The Shoreline Community is considered to be in defau lt if the Shoreline Community fails to pay the principal of and interest on the outstanding b onds when they become due and payable. If an event of default has occurred and is continuing , the trustee may, and if requested i n w r i t i n g b y t h e o w n e r s o f a m a j o r i t y i n a g g r e g a t e p r i n c i p a l amount of the bonds then outstanding, declare the principal of the bonds, together with the accrued interest, to be due and payable immediately.
2018 Revenue Bonds Shoreline Regional Park Community ‐ On December 19, 2018, the Shoreline Community issued 2018 Revenue Bonds, Series A (Tax‐Exempt) and Series B (Taxable) (2018 Bonds) of $53.5 million a nd $10.3 million, respectively. Proceeds from the 2018 Bonds were used to provide funds to acquire and construct certain capital improvements of benefit to the Shoreline Community. The 2018 Bonds are special obligations of the Shoreline Community and are secured by a portion of all taxes levied upon all taxable property within the Shoreline Community. Principal payments are payable annually on August 1 and interest payments semi‐ annually on August 1 and February 1 from property tax revenues generated within the Shoreline Community. The Shoreline Community is considered to be in default if the Shoreline Community fails to pay the principal of and interest on the outstanding b onds when they become due and payable. If an event of default has occurred and is continuing , the trustee may, and if requested i n w r i t i n g b y t h e o w n e r s o f a m a j o r i t y i n a g g r e g a t e p r i n c i p a l amount of the bonds then outstanding, declare the accreted value and principal of the bonds, together with the accrued interest, to be due and payable immediately.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
75 NOTE 7 – NONCURRENT LIABILITIES (Continued)
Compensated Absences ‐ Compensated absences are liquidated by the fund that has rec orded the liability. The long‐term portion of governmental activities compensated absences is liquidated by contributions from various funds, but primarily the General Fund.
Landfill Containment ‐ The City is responsible for managing and controlling methane g a s a n d containment of leachate at three former City‐operated landfill sites.
Pursuant to a Postclosure Maintenance Plan filed with the State, the City is obligated for additional postclosure care costs for two of its landfill sites . The estimated costs of postclosure care are subject to changes such as the effects of inflation, r evision of laws and other variables.
The estimated amount of this obligation as of June 30, 2022, is approximately $43.3 million.
Annual revenues from the Solid Waste Enterprise Fund will fund the postclosure care costs. In accordance with a State‐mandated Financial Assurance Mechanism (FAM), the City has pledged Solid Waste Enterprise Fund revenues in the amount of $2.8 million as of June 30, 2022, for postclosure care costs on these two landfill sites. A third landfill site maintained by the City did not require a FAM to be established for the closure of the site and the City’s postclosure care cost is not estimable.
Claims Liabilities – The City has established various self‐insurance programs to account for and finance its uninsured risks of loss. Estimated liabilities are recorded for claims when it is probable that a loss has occurred and the amount of the loss can be reasonably determined. Further discussion on the City’s claim liabilities and Risk Management is included in Note 10.
2004 Water Revenue Bonds ‐ On September 29, 2004, the City issued $9.7 million of 2004 Water Revenue Bonds, 2004 Series A, to fund the construction of Graham Reservoir. Water fund revenues are pledged to pay the debt service on the bonds. Principal payments are payable annually on June 1 and interest payments semi‐annually on June 1 and December 1 from Water Fund Revenues. The City is considered to be in default if the C ity fails to pay the principal of and interest on the outstanding bonds when they become due and payable and such default has continued for a period of thirty days. Upon the occurrence and during the continuance of any event of default, the trustee may, and upon written notice from t h e o w n e r s o f a m a j o r i t y i n aggregate principal amount of the bonds then outstanding, decla re the principal of the bonds, together with the accrued interest, to be due and payable immediately.
City of Palo Alto Loan – The Cities of Palo Alto and Mountain View began a joint project to construct a reclaimed water pipeline (Project) in 2004. In October 2007, the City of Palo Alto approved a $9.0 million loan agreement with the State Water Res ources Control Board (SWRCB) to finance a portion of the Project. Under the terms of the loa n agreement, the Project received $7.5 million in proceeds. The additional $1.5 million due on the loan represents in‐substance interest. Payments are due annually on the loan for twenty years following the completion of the construction. The City agreed to repay the City of Palo Alt o a $6.0 million share of this loan to finance $5.0 million of the costs of the Project within the City under the same terms as the original loan agreement with SWRCB. The City will pay $300,000 annually for twenty years.
The project has been completed and payments on the loan commenced on June 30, 2010. There are no acceleration provisions in the event of a payment default for this loan.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
76 NOTE 7 – NONCURRENT LIABILITIES (Continued)
Wastewater Direct Financing Arrangement – On November 1, 2018, the City executed an Installment Sale Agreement between the City and the Financing Authority and an Assignment A g r e e m e n t b e t w e e n t h e F i n a n c i n g A u t h o r i t y a n d O p u s B a n k t o p r o v i d e f u n d s f o r W a s t e w a t e r i n f r ast r u c tu re c ap it al p r oj e c t s. Th e f i nan c i n g ar r ang e m e nt i s for up to $10.1 with a maximum term of 15 years. Wastewater fund revenues are pledged to pay the debt service on the direct financing arrangement. Principal payments are payable annually on December 1 and interest payments semi‐annually on June 1 and December 1 from Wastewater Fund Revenues. The City is considered to be in default if the City fails to pay the installment payments when they become due and payable. If an event of default has occurred and is co ntinuing, the lender has the right to declare all unpaid installment payments, principal and accrued interest, to be due and payable immediately.
C. Debt Service Requirements
The pledge of future tax increment revenues ends upon repayment of the $156.8 million in remaining debt service on the Shoreline Community’s Revenue Bon ds, which is scheduled to occur in Fiscal Year 2048‐49. For the fiscal year ended June 30 , 2022, tax increment revenues amounted to $55.5 million, which represented coverage of 8.6 over the $6.4 million in debt service.
The pledge of future water fund revenues ends upon repayment of the $6.5 million in remaining debt service on the Water Revenue Bonds and City of P alo Alto Loan, which are both scheduled to occur in Fiscal Year 2028‐29. For the fiscal year ended June 30, 2022, Water Fund revenues including operating revenues, non‐operating interest e arnings, capital contributions – developer fees, and transfers in amounted to $41.4 million and operating expenses, excluding depreciation or amortization amounted to $27.5 million. Net Revenues available for debt service amounted to $13.9 million, which represented coverage of 15.0 over the $925,000 in debt service.
The pledge of future wastewater fund revenues ends upon repayment of the $10.2 million in remaining debt service on the Wastewater Direct Financing Arran gement, which are scheduled to occur in Fiscal Year 2033‐34. For the fiscal year ended June 30, 2022, Wastewater Fund revenues including operating revenues, non‐operating interest e arnings, capital contributions – developer fees, and transfers in amounted to $29.2 million and operating expenses, excluding depreciation or amortization amounted to $19.1 million. Net Revenues available for debt service amounted to $10.1 million, which represented coverage of 11.8 over the $853,000 in debt service.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
77 NOTE 7 – NONCURRENT LIABILITIES (Continued)
Annual debt service requirements to maturity are as follows (dollars in thousands):
For the Fiscal Year
Ending June 30 Principal Interest Principal Interest Principal Intere st 2023 $ 1,615 4,243 760 166 579 273 2024 1,680 4,175 780 146 599 253 2025 1,750 4,103 805 124 619 233 2026 1,825 4,026 825 101 641 212 2027 1,905 3,945 850 77 663 189 2028‐2032 10,830 18,297 1, 775 80 3, 669 594 2033‐2037 13,895 15,193 ‐ ‐ 1, 649 56 2038‐2042 18,010 10,969 ‐ ‐ ‐ ‐ 2043‐2047 23,130 5,743 ‐ ‐ ‐ ‐ 2048‐2049 10,955 554 ‐ ‐ ‐ ‐ Total $ 85,595 71,248 5,795 694 8,419 1,810 Wastewater Direct
Financing ArrangementGovernmental Activities
Business‐type Activities
(Excluding Wastewater
Direct Financing
Arrangement)
There are a number of limitations, covenants and restrictions contained in the various bond indentures. The City is in compliance with all material limitations, covenants and restrictions.
NOTE 8 – PENSION PLANS
A. General Information about the Pension Plans
Plan Descriptions – All qualified regular and probationary employees are eligible to participate in either the City’s Miscellaneous (all other) or Safety (polic e and fire) plans (Plans), agent multiple‐employer defined benefit pension plans administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.
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, a g e a t r e t i r e m e n t a n d compensation. The cost‐of‐living adjustments for the CalPERS pl ans are applied as specified by the Public Employees’ Retirement Law. The California Public Employees’ Pension Reform Act (PEPRA), which became effective in January 2013, changes the way CalPERS retirement and health benefits are applied, and places compensation limits on members . A s s u c h , m e m b e r s w h o established CalPERS membership on or after January 1, 2013 are known as “PEPRA” members.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
78 NOTE 8 – PENSION PLANS (Continued)
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50+ 52+
Required employee contribution rates 8.00% 7.00%
Required employer contribution rates 34.99% 34.99% (A)
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50+ 50+
Required employee contribution rates 9.00% 11.25%
Required employer contribution rates 51.98% 51.98% (A)
Miscellaneous
Safety
(A) The minimum employer contribution rate under PEPRA is the great er of the required employer rate cost or the employer normal costs.
Employees Covered – Employees covered by the benefit terms for each Plan as of June 30, 2021, the most recent actuarial valuations information available, are as follows:
Miscellaneous Safety
Inactive employees or beneficiaries currently
receiving benefits 719 320
Inactive employees entitled to but not yet
receiving benefits 543 103
Active employees 454 153
Total 1,716 576
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires the employer contribution rates for all public employers to be determined on an annual basis by the CalPERS actuary and shall be effective on the July 1 fol lowing notice of a change in the rate. The actuarially determined rate is the projected amount n ecessary to finance the costs of benefits earned by employees during the year, with an additiona l amount to finance any unfunded accrued liability. The City is required to contribute the difference between the
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
79 NOTE 8 – PENSION PLANS (Continued)
actuarially determined rate and the contribution rate of employees. For the purpose of increasing the funded status of the Plans, the City contributed $2.2 million and $1.4 million in excess of the actuarially determined contributions for the Miscellaneous and Safety Plans, respectively, during the fiscal year ended June 30, 2022.
B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions – The total pension liabilities in the June 30, 2020 actuarial valuations were determined using actuarial assumptions as follows:
Miscellaneous and Safety Plans
Valuation Date June 30, 2020
Measurement Date June 30, 2021
A ct uarial Cost Me t hod E nt ry‐A ge N orm al Cost Me t hod Actua ri a l As s umpti ons :
Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase Varies by Entry Age and Service Post Retirement Benefit Increase The lessor of contract COL A or 2.50% until Purchasing Power Protection Allowance Floor on
purchasing power applies, 2.50% thereafter.
Mortality Derived using CalPERS Membership Data
for all Funds (1)
(1) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre‐retirement and post‐retirement mortality rates includes 15 years of projected mortality improvements using 90 percent of Scale MP‐2016 published by the Society of Actuaries. For more details on this table, please refer to the 2017 CalPERS E xperience Study available on the CalPERS website.
All other actuarial assumptions used in the June 30, 2020 actuarial valuation were based on the 2017 CalPERS Experience Study for the period from 1997 to 2015, including updates to salary increase, mortality and retireme nt rates. Further details of th e 2017 CalPERS Experience Study can be found on the CalPERS website under Forms and Publications.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
80 NOTE 8 – PENSION PLANS (Continued)
Discount Rate – The discount rate used to me asure the total pension liabilit y was 7.15 percent for each Plan. The projection of cash flows used to determine the discount rate assumed that the contributions from employers will be made at current member contribution rates and that contributions from employers will be made at statutorily requir ed rates, actuarially determined.
Based on those assumptions, the Plan’s fiduciary net position w as projected to be available to make all projected future benefit payments of current plan memb ers. Therefore, the long‐term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long‐term expected rate of return, 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, expec ted compound ( geometric) returns were calculated over the short‐term (first 10 years) an d the long‐term (11+ 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 rounded single equivalent expected retur n that arrived at the same present value of benefits for cash flows as the one calculated using both short‐term and long‐ term returns. The expected rate of return was then set equal to the single equivalent rate calculated and adjusted to account for assumed administrative expenses.
The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The long‐term expected real rate of return by asset class and the target allocation adopted by the CalPERS Board effective on July 1, 2020, are as follows:
As s et Cl a s s
Current
Target
Al l oca ti on
Real Return
Years 1 ‐ 10 1
Real Return
Years 11+ 2
Global Equity 50.0% 4.80% 5.98%
Global Fixed Income 28.0 1.00 2.62
Inflation Sensitive 0.0 0.77 1.81
Pri vate Equi ty 8.0 6.30 7.23
Real Estate 13.0 3.75 4.93
Liquidity 1.0 0.00 (0.92)
(1) An expected i nf l ati on rate of 2.00 percent is used for thi s peri od. (2) An expected i nf l ati on rate of 2.92 percent is used f or thi s peri od.
On November 17, 2021, the CalPERS Board adopted a new strategic asset allocation. The new a s s e t a l l o c a t i o n a l o n g w i t h t h e new capital market assumptions, economic assumptions and administrative expenses assumption support a discount rate of 6 .90% (net of investment expenses but without a reduction for administrative expense) fo r financial reporting purposes.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
81 NOTE 8 – PENSION PLANS (Continued)
This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates o f s a l a r y i n c r e a s e s t h a t w e r e a d o p t e d b y t h e C a l P E R S B o a r d . T hese new assumptions will be reflected in the accounting valuation reports for the June 30, 2022 measurement date.
C. Changes in the Net Pension Liability
The changes in the net pension liability for each Plan are as follows (dollars in thousands):
Miscellaneous Plan:
Total Pension
Liability
Plan Fiduciary
Net Position
Net Position
Liability
Balance at June 30, 2020 464,397$ 347,566 116,831 Changes during the measurement period:
Service cost 8,642 ‐ 8,642 Interest on the total pension liability 32,778 ‐ 32,778 Differences between expected and actual experience 1,435 ‐ 1,435 Contributions ‐ employer ‐ 15,273 (15,273) Contributions ‐ employee ‐ 5,489 (5,489) Investment income ‐ 78,758 (78,758) Administrative expenses ‐ (347) 347 Benefit payments, including refunds of employee
contributions (23,432) (23,432) ‐ Net changes 19,423 75,741 (56,318) Balance at June 30, 2021 483,820$ 423,307 60,513 Safety Plan:
Total Pension
Liability
Plan Fiduciary
Net Position
Net Position
Liability
Balance at June 30, 2020 399,718$ 288,837 110,881 Changes during the measurement period:
Service cost 7,933 ‐ 7,933 Interest on the total pension liability 28,366 ‐ 28,366 Differences between expected and actual experience 2,993 ‐ 2,993 Contributions ‐ employer ‐ 12,508 (12,508) Contributions ‐ employee ‐ 4,329 (4,329) Investment income ‐ 65,428 (65,428) Administrative expenses ‐ (289) 289 Benefit payments, including refunds of employee
contributions (19,902) (19,902) ‐ Net changes 19,390 62,074 (42,684)
Balance at June 30, 2021 419,108$ 350,911 68,197 Total Net Pension Liability ‐ All Plans at June 30, 2021 902,928$ 774,218 128,710 Increase (Decrease)
Increase (Decrease)
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
82 NOTE 8 – PENSION PLANS (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The net pension liability of the City for each Plan, calculated using the discount rate f or each Plan, as well as what the City’s net pension liability would be if it were calculated usi ng a discount rate that is one percentage point lower or one percentage point higher than the current rate are as follows (dollars in thousands):
Discount Rate
‐1% (6.15%)
Current
Discount Rate
(7.15%)
Discount Rate
+1% (8.15%)
Miscellaneous Plan 121,694$ 60,513 9,714 Safety Plan 122,816 68,197 22,943 Total 244,510$ 128,710 32,657
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the fiscal year ended June 30, 2022, the City recognized pension expense of $2.4 million and $4.5 million for the Miscellaneous and Safety Plans, respec tively.
The City reported deferred outflows of resources related to pensions by sources for the fiscal year ended June 30, 2022 as follo ws (dollars in thousands):
Miscellaneous Plan: Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date $ 17,342 ‐ Differences between expected and actual experience 2,197 ‐ Net differences between projected and actual earnings
on plan investments ‐ 39, 241 Total $ 19,539 39,241 Safety Plan: Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date $ 13,748 ‐ Differences between expected and actual experience 2,754 ‐ Net differences between projected and actual earnings
on plan investments ‐ 32, 456 Total $ 16,502 32,456 Total ‐ All Plans 36,041 $ 71,697
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
83 NOTE 8 – PENSION PLANS (Continued)
As of June 30, 2022, the City reported $17.3 million and $13.7 million as deferred outflows of resources related to contributions subsequent to the measuremen t date for the Miscellaneous and Safety Plans, respectively, which will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2023. Net amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense are as fo llows (dollars in thousands):
Fiscal Year
Ending June 30,
Misce llane ous
Plan Safe ty Plan Total
2023 (8,093) $ (6,396) (14,489)
2024 (8,704) (6,516) (15,220)
2025 (9,433) (7,807) (17,240)
2026 (10,814) (8,983) (19,797)
Total (37,044) $ (29,702) (66,746)
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS
A. General Information about the OPEB Plan
Plan Descriptions – By Council resolution and through agreements with its labor units, the City provides certain health care benefits for retirees (spouse and dependents are not included for CalPERS Miscellaneous employees, but are included for CalPERS Safety employees in the CalPERS Health Program governed by the Public Employees’ Medical and Hospital Care Act (PEHMCA)) under a single employer defined benefit OPEB plan. In December 2008, the City entered into an agreement with CalPERS to participate in the CERBT, an agent multiple‐employer other postemployment benefits plan, to fund the City’s OPEB. CERBT, administrated by CalPERS, is managed by an appointed board not under the control of the City Council. CERBT issues a publicly available financial report that can be found on the CalPERS website at www.calpers.ca.gov.
The City also offers a Defined Contribution (DC) Plan to eligible miscellaneous employees. If an employee elects to participate in the DC Plan, the City makes contributions on behalf of the employee into a Health Savings Account (HSA). Employees who have elected the DC Plan are not included in the City’s actuarial valuation for OPEB.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
84 NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Benefits Provided – The City provides medical and vision OPEB benefits. The City provided OPEB by group and eligibility is as follows:
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
85 NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Employees Covered – Employees covered by the benefit terms as of June 30, 2021, t he most recent actuarial valuations information available, are as follows:
Inactive employees or beneficiaries currently
receiving benefits 435
Active employees 364
Total 799
Contributions – The City’s OPEB funding policy is to contribute 100 percent or more of the actuarially determined contribution each year. For the year ended June 30, 2022, the City’s contributions totaled $5.8 million. For the purpose of increasi ng the funded status of the OPEB Plan, the City contributed $2.7 million in excess of the a ctuarially determined contributions during the fiscal year ended June 30, 2022.
B. Net OPEB Liability (Asset)
The City’s net OPEB liability (asset) is measured as the total OPEB liability, less the OPEB plan’s fiduciary net position. The net OPEB liability (asset) is measu red as of June 30, 2021 using an annual actuarial valuation as of June 30, 2021. The table below shows how the net pension liability (asset) are of June 30, 2022 are distributed:
Govenmental activities (26,095)$
Bus i nes s ‐type acti vi ti es 341
Total (25,754)$
Actuarial Assumptions – The total OPEB liability in the June 30, 2021 actuarial valuation were determined using actuarial assumptions as follows:
Valuation Date June 30, 2021
Measurement Date June 30, 2021
A ct uarial Cost Me t hod E nt ry‐A ge N orm al Cost Me t hod A ct uarial A ssum pt ions:
Discount Rate 6.00%
Inflation 2.50%
Projected Salary Increase 3.00%
Post Retirement Benefit Increase For medical plan premiums: 5.70% for the year beginning January 1, 2022 and graded down until 4.00%
ul ti ma te ra te i s rea ched.
For vision premiums: 3.00%
Mortality Derived using CalPERS Membership Data
for all Funds (1)
(1) Demographic actuarial assumpt i o n s u s e d a r e b a s e d o n t h e 2 017 CalPERS Experience Study for the period from 1997 to 2015 , except for the MacLeod Watts Scale 2018 applied generationall y from 2015 as the basis to project future morality improvements. The representative mortality rates were those published by CalPERS, adjusted to back out 15 years of Scale MP‐2016 to central year 2015.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
86 NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Change in Assumptions – During the measurement period 2021, the discount rate was re duced from 6.25 percent to 6.00 percent. Inflation rate was reduced from 2.75 percent to 2.50 percent.
Other assumptions including projected salary increase, post retirement benefit increase, and other demographic assumptions were also changed.
Discount Rate – The discount rate used to measure the total OPEB liability is 6.00 percent. The projection of cash flows used to determine the discount rate assumed that the City’s contribution will be made equal to the actuarially determined contribution. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long‐term expected rate of r e t u r n o n O E P B p l a n i n v e s t m e n t s i s a p p l i e d t o a l l p e r i o d s o f p rojected benefit payments to determine the total OPEB Liability.
The long‐term expected rate of return for OPEB plan investments is 6.00 percent. Using historical returns of all the funds’ asset classes, expected compound geometric returns were calculated over the short‐term (first 10 years) and the long‐term (11+ years) using a building‐block approach.
The long‐term expected real rate of return by asset class and t he target allocation are as follows:
A sse t Class
Current
Target
Al l ocati on
Real Return
Years 1‐10 1
Real Return
Yea rs 11+ 2
Global Equity 40.0% 4.80% 5.98%
Fixed Income 43.0 1.10 2.62
REITS 8.0 3.20 5.00
TIPS 5.0 0.25 1.46
Commodities 4.0 1.50 2.87
(1) An expected i nf l ati on rate of 2.00 percent is used for thi s peri od. (2) An expected i nf l ati on rate of 2.92 percent is used f or thi s peri od.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
87 NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
C. Changes in the Net OPEB Liability (Asset)
The changes in the net OPEB liability (asset) are as follows (dollars in thousands):
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
(Asset)
Balance at June 30, 2020 151,256 $ 145,880 5,376 Changes during the measurement period:
Service cost 3,428 ‐ 3,428 Interest on the total OPEB liability 9,456 ‐ 9,456 Changes in assumptions 4,921 ‐ 4,921 Differences between expected and actual experience (13,543) ‐ (13,543) Contributions ‐ employer ‐ 6,772 (6,772) Investment income ‐ 28,673 (28,673) Administrative expenses ‐ (53) 53 Benefit payments (6,772) (6,772) ‐ Net changes (2,510) 28,620 (31,130) Balance at June 30, 2021 148,746 $ 174,500 (25,754) Increase (Decrease)
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate – The net OPEB liability (asset) of the City, calculated using the discount rate of 6.00 percent, as well as what the City’s net OPEB (asset) liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate are as follows (dollars in thousands):
Discount Rate
‐1% (5.00%)
Current
Discount Rate
(6.00%)
Discount Rate
+1% (7.00%)
(5,457)$ (25,754) (42,394)
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rates – The net OPEB liability (asset) of the City, as well as what the City’s net OPEB liability (asset) would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current rate are as follow s (dollars in thousands):
Healthcare
Cost Trend
Rate ‐1%
Healthcare
Cost Trend
Current Rate
Healthcare
Cost Trend
Rate +1%
(43,485)$ (25,754) (4,004)
OPEB Plan Fiduciary Net Position – Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued CERBT financial report.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
88 NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
E. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2022, the City recognized OPEB income of $3.4 million.
The City reported deferred outflows of resources and deferred i nflows of resources related to OPEB by sources for the fiscal year ended June 30, 2022 are as follows (dollars in thousands):
Deferred
Outflows
Deferred Inflows
of Resources
OPEB contributions subsequent to measurement date $ 5,848 ‐ Differences between expected and actual experience ‐ 16, 332 Changes in assumptions 3,825 301 Net differences between projected and actual
earnings on plan investments ‐ 15, 041 Total $ 9,673 31, 674
As of June 30, 2022, the City reported $5.8 million as deferred outflows of resources related to contributions for OPEB subsequent to the measurement date, whic h will be recognized as a reduction (addition) of the net OPEB liability (asset) in the f iscal year ending June 30, 2023. Net amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense are as follows (dollars in thousands):
Fiscal Year
Ending June 30,
2023 (8,083) $
2024 (8,201)
2025 (6,713)
2026 (4,852)
Total (27,849) $
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
89 NOTE 10 – RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, errors and omissions, injuries to employees or others, unemployment and certain health care benefits of emp loyees. The City has established various self‐insurance programs to account for and finance its uninsured risks of loss. Under the self‐ insurance programs, the City retains the risk of loss up to a m aximum of $1.0 million for general liability claims, $750,000 for workers' compensation claims with statutory excess insurance and actual costs incurred for unemployment and certain healthcare benefits.
For general liability claims, the City has excess liability coverage through the Authority for California Cities Excess Liabilities (ACCEL) to cover the risk of loss for claims in excess of $1.0 million per incident.
ACCEL is a joint powers authority of medium‐sized California municipalities, which pools catastrophic general liability, automobile liability and public officials’ e rrors and omissions losses. Amounts of settlements have not exceeded insurance coverage in the past three years.
Charges to the General Fund and other insured funds are determi ned from an analysis of self‐ insured claims costs and reserve requirements and are recorded as opera ting expenditures or expenses of such funds and operating revenues of the various internal service funds.
Estimated liabilities are recorded for claims in cases where such amounts are reasonably determinable and where the liability is likely for claims which are incurred through the end of the fiscal year but not reported until after that date. The estimated liability is determined based upon historical claims data discounted at 2.0% annually and independently determined estima tes of the amounts needed to pay prior and current year claims.
Changes in accrued self‐insurance claims for the fiscal year en ded June 30 are as follows (dollars in thousands):
2021 2022
Beginning Balance 10,205 $ 8,452
Liability for current and change in prior fiscal year
claims and claims incurred but not reported (IBNR) 791 2,152 Claims paid (2,544) (1,307)
Ending Balance 8,452 $ 9,297
Current portion 2,837 $ 3,180
T h e C i t y h a s n o t s i g n i f i c a n t l y r e d u c e d i t s i n s u r a n c e c o v e r a g e from the prior fiscal year. Furthermore, settlements have not exceeded insurance coverage for the past three fiscal years.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
90 NOTE 11 – LEASES
The City entered into various lease agreements as either a lessor or lessee for land, equipment, and other asset classes. As a lessee, the City is required to recognize a lease liability and an intangible right‐to‐use l e a s e a s s e t . A s a l e s s o r , t h e C i t y i s r e q u i r e d t o r e c o g n i z e a lease receivable and a deferred inflow of resources. The City defines leases as balances with an initial individual value of more than $200,000.
A. City as Lessor
As a lessor, the City entered in to lease agreements with lease terms ranging from 1 to 65 years.
Most leases include periodic adjustments to the lease amount at determined intervals. For the year ended June 30, 2022, the City received an immaterial amount of variable and other payments from the lease arrangements.
Information about lease revenues and interest revenues recogniz ed during the year ended June 30, 2022, as well as lease receivable and lease related deferred inflows of resources as of June 30, 2022 are as follows (dollars in thousands):
General Governmental
Fund Activities
Lease revenue for the year 29,160 $ 29,16 0
Lease interest revenue for the year 12,402 12,402 Lease receivable at year‐end 794,487 794,487 Deferred inflow of resources at year‐end 781,366 781,366
The annual lease receipt schedule for the lease receivables is as follows (dollars in thousands):
For the Fiscal Year
Ending June 30 Principal Interest Total
2023 $ 10,741 13,391 24,132
2024 11,706 13,237 24,943
2025 12,729 13,068 25,797
2026 12,438 12,884 25,322
2027 12,127 12,695 24,822
2028‐2032 73,256 60,113 133,369 2033‐2037 94,227 53,134 147,361 2038‐2042 128,149 43,660 171,809
2043‐2047 174,114 30,773 204,887
2048‐2052 169,742 14,421 184,163
2053‐2057 34,168 6,793 40,961 2058‐2062 41,454 3,560 45,014 2063‐2067 13,953 942 14,895 2068‐2070 5,683 140 5,823 Total $ 794,487 278,811 1,073,298
Governmental Activities
General Fund/
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
91 NOTE 11 – LEASES (Continued)
B. City as Lessee
As a lessee, during the year ended June 30, 2022, the City ente red into a lease agreement with a lease term of 65 years for a land owned by the lessor. The City has an option to purchase the land and is reasonably certain to exercise the option. Thus, the leased asset is not amortized. For the year ended June 30, 2022, the City had not paid any variable an d other payments for the lease arrangement. At June 30, 2022, the leased asset balance was $6.5 million.
The annual debt service requirement for leases liability is as follows (dollars in thousands):
For the Fiscal Year
Ending June 30 Principal Interest Total
2023 $ 43 157 200 2024 44 156 200 2025 45 155 200 2026 46 154 200 2027 47 153 200 2028‐2032 251 749 1,000 2033‐2037 285 715 1,000 2038‐2042 321 679 1,000 2043‐2047 363 637 1,000 2048‐2052 410 590 1,000 2053‐2057 463 537 1,000 2058‐2062 522 478 1,000 2063‐2067 590 410 1,000 2068‐2072 666 334 1,000 2073‐2077 752 248 1,000 2078‐2082 849 151 1,000 2083‐2087 802 43 845 Total $ 6,499 6,346 12,845
Governmental Activities
C. Significant Lease Arrangements
SFX Entertainment, Inc. ‐ On May 10, 2006, the City, the Shoreline Community and SFX Entertainment, Inc. (SFX), wholly owned by Live Nation, entered into an Amended and Restated Amphitheatre Ground Lease Agreemen t (Agreement) for the period from March 15, 2006 through December 31, 2020. SFX excised the first five‐year opt ion to extend the lease with an expiration date of December 31, 2025. A second five‐year option is at the discretion of the City.
The lessee is required to pay annual base rent to the City, due in nine equal installments in the months of April through December. Beginning March 15, 2018, the lease payment shall increase
2.0 percent annually. At June 30, 2022, the amount of lease receivable is $17.7 million.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
92 NOTE 11 – LEASES (Continued)
Google LLC. (Google) ‐ On March 7, 1995, the City, as lessor, entered into a 55‐year lease with Silicon Graphics, Inc. (SGI), an entity not affiliated with the City (1995 Lease). This lease provides for the rental of City land located within the Shoreline Community upon which SGI constructed a 500,000 square foot corporate campus. On December 12, 1996, the City, as lessor, entered into another 55‐year lease with SGI (1997 Lease). This lease provide s for the rental of City land located within the Shoreline Community upon which SGI constructed a second 556,000 square foot facility. On April 19, 2001, SGI assigned the two lease ag reements described above to Goldman Sachs, Inc., an entity not affiliated with SGI or the City. Goldman Sachs assigned the agreements to WXIII/Crittenden Realty C, LLC on May 22, 2001, w hich assigned the agreements to Google on June 29, 2006. The 1995 Lease and 1997 Lease provide for rent increases of 4.0 percent per annum and the rent is to be adjust ed every 10 years to the greater of 6.0 percent of the then fair value of the property or the in itial base rent. At June 30, 2022, the amount of lease receivable for the 1995 Lease and 1997 Lease are $270.5 million and $295.4 million, respectively.
On August 31, 2007, the City, as lessor, entered into a 55‐year lease with Google (2007 Lease).
The lease provides for rent increases of 3.0 percent per annum and the rent is to be adjusted every 10 years to the greater of 7.0 percent of the then fair value of the property or the initial base rent. The revalued monthly rent shall not exceed 165.0 percent of the monthly rent payable during the initial year of the prior escalation period. At June 30, 2022, the amount of lease receivable for the 2007 Lease is $109.5 million.
On April 1, 2011, the City, as lessor, entered into a 52‐year lease with Google (termination to coincide with the 2007 Lease). Google advanced the rent for the 52‐year lease term in the amount of $30.0 million to the City. At June 30, 2022, the amou nt of lease receivable is $17.0 million.
In Fiscal Year 2017‐18, the City Council approved the developme nt for the Charleston East site and approved the sublease of Parking Lots C & D between Google and SFX through December 31, 2025 to provide temporary parking space during the Charleston E ast Site construction. In exchange for the City’s consent to accept the sublease between Google and SFX, starting January 1, 2021, the City receives payment of $2.3 million annually with annual adjustments of 4% through December 31, 2025. At June 30, 2022, the amount of lease receivable is $8.7 million.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
93 NOTE 11 – LEASES (Continued)
MV 101 Development, LLC ‐ On April 1, 2015, the City, as lessor, entered into a DDA and a 55‐year ground lease with MV 101 Development, LLC, (MV 101), an entity not affiliated with the City. The DDA provides for the development of 6.69 acres of land owned by the City, at 750 Moffett Boulevard, commonly referred to as Ameswell (formerly Moffett G ateway) in conjunction with adjacent land formerly owned by Caltrans and acquired by MV 101 , with a hotel, office building and joint parking structure. The ground lease provides for the rental of the City land for 55 years with four 10‐year extensions. The agreement also provides for office building minimum rent upon the issuance of a building permit at $140 per buildable square foot at 5.0 percent of the fair value of the land, with increases of 3.0 percent per annum. Commencin g with the 16th operating year and every 10 years thereafter, the building minimum base rent shall be increased or decreased to the current market rate based on 5.0 percent of the then current fair value of the property or the initial base rent, whichever is higher and adjusted thereafter by the annual CPI. At June 30, 2022, the amount of lease receivable is $62.7 million.
NOTE 12 – NET POSITION AND FUND BALANCES
A. Net Position
Net position is the excess of all assets and deferred outflows of resources over all liabilities and deferred inflows of resources, regardless of fund. Net position is divided into three captions on the Statement of Net Position. These captions apply only to net position, which is determined at the Government‐wide level and proprietary funds and are described as follows:
Net investment in capital assets – This caption groups all capital assets, including infrastructur e, into one component of net position. Accumulated depreciation a nd the outstanding balances of debt, including debt related deferred outflows and inflows of resources that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
Restricted ‐ T h i s c ap t i on r e p r e se n t s ne t p osition, which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, grant funds, funds restricted for debt service, and funds restricted to low and moderate income housing purposes.
Unrestricted – This caption represents net position of the City not restricte d f o r a n y p r o j e c t o r purpose.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
94 NOTE 12 – NET POSITION AND FUND BALANCES (Continued)
B. Fund Balances
Governmental fund balances represent the assets and deferred outflows of resources less the liabilities and deferred inflows of resources of each fund. Governmental funds report fund balance in classifications based primarily on the extent to whic h t h e C i t y i s b o u n d t o h o n o r constraints on how specific amounts in the funds can be spent. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned and Unassigned. Each category in the follow ing hierarchy is ranked according to the degree of spending constraint as follows:
Nonspendable fund balances are amounts that cannot be spent because they are either (a) not in spendable form; or (b) legally or contractually required to be maintained intact.
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 a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by resolution of the City Council, which may only be altered by resolution of the City Council. Nonspendable amounts subject to Council commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City’s intent to be u s e d f o r a s p e c i f i c purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designees and may be changed at the discretion of the City Council or its designees. The City Council has not delegated the authority to make assignments of fund balance. This category also includes residual fund balances of Special Revenue, Capital Projects and Debt Service Funds, which have not been restricted or committed.
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.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
95 NOTE 12 – NET POSITION AND FUND BALANCES (Continued)
Detailed classifications of the City’s Fund Balances, as of June 30, 2022, are as follows (dollars in thousands):
Fund Balance Classifications General
Shoreline
Regional
Park
Community Housing
General
Capital
Projects
Park
La nd
Dedication
Capital
Projects
Other
Governmental Total
Nonspendable:
Inventory $ 767 ‐ ‐ ‐ ‐ 72 839 Deposits and prepaid costs 68 ‐ ‐ ‐ ‐ ‐ 68 Total Nonspendable 835 ‐ ‐ ‐ ‐ 72 907 Restricted:
Shorel i ne Regi ona l Pa rk Communi ty ‐ 66,062 ‐ ‐ ‐ ‐ 66,062 Landfill Containment ‐ 10,000 ‐ ‐ ‐ ‐ 10,000 Housing ‐ ‐ 176,865 ‐ ‐ ‐ 176,865 General Capital Projects ‐ ‐ ‐ 272,097 ‐ ‐ 272,097 Park Land Dedication Fees ‐ ‐ ‐ ‐ 79,689 ‐ 79,689 Gas Tax ‐ ‐ ‐ ‐ ‐ 2,384 2,384 Other Streets and Transportation ‐ ‐ ‐ ‐ ‐ 668 668 Construction & Conveyance Tax ‐ ‐ ‐ ‐ ‐ 15,919 15,919 Devel opment Servi ces ‐ ‐ ‐ ‐ ‐ 2,181 2,181 CSFRA/Rental Housing Committee ‐ ‐ ‐ ‐ ‐ 1,514 1,514 M
obile Hom e Re nt St abilizat ion ‐ ‐ ‐ ‐ ‐ 239 239 Housing Successor ‐ ‐ ‐ ‐ ‐ 12,683 12,683 Downtown Benefi t As s es s ment Di s tri ct ‐ ‐ ‐ ‐ ‐ 20,701 20,701 Pol i ce As s et Forfei tures ‐ ‐ ‐ ‐ ‐ 481 481 Grants ‐ ‐ ‐ ‐ ‐ 26,766 26,766 Cable Television ‐ ‐ ‐ ‐ ‐ 800 800 De fe rre d A sse ssm e nt s ‐ ‐ ‐ ‐ ‐ 390 390 Debt Service ‐ ‐ ‐ ‐ ‐ 6,545 6,545 Storm Drain Construction ‐ ‐ ‐ ‐ ‐ 459 459 Minor Estate Trust 436 ‐ ‐ ‐ ‐ ‐ 436 Total Restricted 436 76,062 176,865 272,097 79,689 91,730 696,879 Committed:
Development Services 22,107 ‐ ‐ ‐ ‐ 35,760 57,867 Budget Contingency 12,359 ‐ ‐ ‐ ‐ ‐ 12,359 Ea rned Leas e Revenue 8,286 ‐ ‐ ‐ ‐ ‐ 8,286 Property Mana gement 1,577 ‐ ‐ ‐ ‐ ‐ 1,577 Graham Site Maintenance 655 ‐ ‐ ‐ ‐ ‐ 655 Transportation 7,841 ‐ ‐ ‐ ‐ ‐ 7,841 Capital Improvement 17,229 ‐ ‐ ‐ ‐ ‐ 17,229 Open Space Acquisition 6,456 ‐ ‐ ‐ ‐ ‐ 6,456 Strategic Property Acquisition 14,140 ‐ ‐ ‐ ‐ ‐ 14,140 Childcare Com m it m e nt 292 ‐ ‐ ‐ ‐ ‐ 292 Com pe nsat e d A bse nce s 5,762 ‐ ‐ ‐ ‐ ‐ 5,762 G e ne ral Spe cial Purpose ‐ ‐ ‐ ‐ ‐ 244 244 Shorel i ne Gol f Li nks ‐ ‐ ‐ ‐ ‐ 63 63 Total Committed 96,704 ‐ ‐ ‐ ‐ 36,067 132,771 Assigned:
Contractual Obligations 5,920 ‐ ‐ ‐ ‐ ‐ 5,920 Unassigned: 93,390 ‐ ‐ ‐ ‐ ‐ 93,390 Total Fund Balances $ 197,285 76,062 176,865 272,097 79,689 127,869 929,867
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
96 NOTE 12 – NET POSITION AND FUND BALANCES (Continued)
C. Committed Fund Balances
The City Council adopted reserve policies and additional counci l actions which includes commitments of fund balances as follows:
1. The Development Services fund balances shall be used to fund th e future obligations of the City’s development activity.
2. The General Fund Budget Contingency Reserve shall be used to pr ovide one‐time financial resources during uncertain economic conditions. This reserve may be used for such things as the transitioning of positions to be eliminated, the phasing out of certain expenditures, smoothing of employee benefit changes, or anticipated or unanticipated revenue declines, as approved by City Council.
3. The General Fund Earned Lease Revenue Reserve Shall be used to accumulate the rent from the ground lease of a portion of the City’s Charleston East pro perty to Google LLC (Google).
Google prepaid $30.0 million as rent for the initial approximat ely 52‐year lease term. The i n t e n t i s f o r t h i s r e s e r v e t o a c c u m u l a t e t h e r e n t , a s i t i s e a rned, so that the $30.0 million principal balance will be available at the end of the initial lease term.
4. The General Fund Property Management Reserve shall be used to p rovide a source of funds for obligations, which could arise from the City's leasing of property including legal services, certain responsibilities identified in land leases, environmental testing, or other costs normally incurred by a lessor.
5. The Graham Site Maintenance Reserve shall be used to fund the maintenance obligations, per the agreement with the school district, of the Graham Sport s Complex, including the playing field at Graham Middle School beneath which the City has a reservoir.
6. The Transportation Reserve shall be used for the funding of major priority transportation projects to mitigate traffic congestion, improve infrastructure, and meet the needs of the City, as authorized by the City Council.
7. The General Fund Capital Improvement Reserve shall be used for the funding of unanticipated priority capital improvement projects authorized by the City Council. To the extent possible, General Fund carryovers remaining from the end of the fiscal year, not assigned or committed for other purposes, may be applied to this reserve.
8. The General Fund Open Space Acquisition Reserve shall be used f or the purpose of acquiring open space to meet the needs of the City as authorized by the City Council. Proceeds from excess City‐owned properties shall fund this reserve as directed by City Council.
9. The General Fund Strategic Property Acquisition Reserve shall be used for the purpose of setting aside specific funds for the City to use for the acquisition of strategic property(ies).
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
97 NOTE 12 – NET POSITION AND FUND BALANCES (Continued)
10. The Childcare Commitment Reserve shall be used to fund low‐inco me subsidies.
11. The Compensated Absences Reserve shall fund the disbursements o f terminated or retired employees for accrued vacation and sick leave or other accrued leave as applicable.
12. The General Special Purpose Reserve shall be used to replace trees when a developer is unable to plant the required trees.
13. The Shoreline Golf Links Reserve shall be used to fund Shorelin e Golf Links and related golf course operations and improvements.
D. Minimum Fund Balance / Net Position Policies
The City’s Financial and Budgetary Policy requires the City to strive to maintain the following fund balances/net position:
1. The General Fund Reserve at 20 to 25 percent of General Fund appropriations.
2. The General Fund Capital Improvement Reserve to be funded with a goal of a minimum balance of $5.0 million.
3. The Compensated Absences Reserve shall be funded at a minimum 8 0 percent of the liabilities of the City for compensated absences such as vacation and vested sick leave.
4. The Shoreline Regional Park Community Special Revenue Fund shall maintain a reserve of 25 percent of operating budget for three months of operating expenditures; the landfill reserve shall be incrementally increased to accumulate funds to rebuild the landfill system, which is initially estimated at approximately $12.0 million, in case of a catastrophic event; and the sea level rise reserve is to be incrementally increased to $30. 0 million for flood protection projects necessary to protect public and private investments wi thin the Shoreline Community identified in the Sea Level Rise Study.
5. The Enterprise Fund Reserves sha ll maintain a minimum 10 percent of operating budget for emergency, a minimum of 5 percent operating budget for contingency and a goal of 10 percent of operating budget for rate stabilization.
6. The Equipment Replacement Reserve shall be maintained to fund the replacement of capital equipment.
7. The Workers’ Compensation Self‐Insurance Reserve shall include at a minimum provision to cover projected liabilities and two catastrophic losses at the City's current level of self‐ insured retention.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
98 NOTE 12 – NET POSITION AND FUND BALANCES (Continued)
8. The Liability Self‐Insurance Reserve shall be maintained at a minimum level of $2.0 million plus expected claims settlements.
9. The Unemployment Self‐Insurance Reserve and the Employee Benefit Plan Reserve shall be maintained at a level adequate to meet estimated benefit liabilities.
E. Landfill Containment Reserve
In 2013, CalRecycle regulations required the City to create a reserve, in whole or incrementally, for potential corrective actions associated with a non‐water release event at the landfill site.
The estimated costs of the corrective actions are adjusted annu ally by an inflation factor approved by CalRecycle. On June 25, 2013, the City Council appr oved to restrict funds for landfill containment in the Landfill reserve of the Shoreline Community Fund. The City estimated the costs for the corrective actions to be $1.1 million for the fiscal year ended June 30, 2022, and $12.0 million to rebuild a new landfill system. As of June 30, 2022, the City restricted $10.0 million for landfill containment and planned to increase the balance by $1.0 million annually until $12.0 million is reached.
NOTE 13 – COMMITMENTS AND CONTINGENCIES
A. Encumbrances
The City’s outstanding encumbrances as of June 30, 2022, are as follows (dollars in thousands):
Fund Balance
Amount Classification
General Fund 2,468$ Committed
General Fund 5,920 Assigned
Shoreline Regional Park Community 295 Restricted Housing 5,711 Restricted
General Capital Projects 75,763 Restricted
Nonmajor Governmental Funds 903 Restricted
Total 91,060$
B. Litigation
The City is a defendant in several lawsuits and other matters arising in the normal course of operations. The City's management and legal counsel are of the opinion the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial position of the City.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
99 NOTE 13 – COMMITMENTS AND CONTINGENCIES (Continued)
C. City of Palo Alto Regional Water Quality Control Plant
The City transmits its wastewater for treatment to a system of transmission, treatment and disposal of wastewater (the “Joint System” or “Treatment Plant”) owned and administered by the City of Palo Alto. The Joint System is governed by an agreemen t between the City of Palo Alto, the City of Mountain View, and the City of Los Altos (the Partners) for the acquisition, construction and maintenance of the Joint System (Agreement). As part of the Agreement, the City purchases treatment capacity at the Treatment Plant. The Agreement provi des that the City will purchase capacity through December 31, 2060, and for the City of Palo Alto to set service charges annually with quarterly billings based on estimated use. A reconciliati on of actual to estimated charges is completed annually. For the fiscal year ended June 30, 2022, t hese costs totaled $11.7 million, w h i c h i s i n c l u d e d a s a c o m p o n e n t o f c o s t o f s a l e s a n d s e r v i c e s expenses in the Wastewater Enterprise Fund.
The Agreement has been supplemented or amended from time to tim e. Addenda include provisions for improvements to the Joint System for which debt was issued by the City of Palo Alto and the Partners agreed to pay their share of debt based o n capacity rights. Each Partner’s share of debt is included in the annual budget provided by the City of Palo Alto and is billed through the quarterly billings. For the fiscal year ended June 30, 2022, the City’s share of debt services totaled to $1.0 million.
D. Sunnyvale Material Recovery and Transfer (SMaRT
®) Station
During Fiscal Year 1992‐93, the City entered into a Memorandum of Understanding (MOU) with the City of Sunnyvale to obtain solid waste and recycling services at the SMaRT® Station. The MOU provides that the City has capacity share of 23.45 percent of this facility for 30 years which expired during Fiscal Year 2021‐22. The City entered into a n e w M O U w i t h t h e C i t y o f Sunnyvale with an effective date of January 1, 2022 and termination date of December 31, 2036.
Annual service charges are determined based on actual per‐ton charges. For the fiscal year ended June 30, 2022, these costs totaled $6.7 million.
E. Education Enhancement Reserve Joint Powers Agreement (JPA)
On June 30, 2013, the Shoreline Community entered into an Education Enhancement JPA with the Mountain View Los Altos Unified High School District (MVLAU HSD) and the Mountain View Whisman School District (MVWSD) effective July 1, 2013, for a period of 10 years, superseding any prior agreements. The agreement provides for minimum annua l payments commencing with the fiscal year ended June 30, 2014 of $1.8 million and $2.9 million to MVLAUHSD and MVWSD, respectively. Each subsequent fiscal year increases based on the growth in property tax revenues in the preceding fiscal year. For the fiscal year ended June 30, 2022, the Shoreline Community paid a total of $8.2 million in contributions to the school districts.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
100
NOTE 13 – COMMITMENTS AND CONTINGENCIES (Continued)
F. Tax Revenue Sharing
Pu r su an t t o an ag r e em e nt be t w ee n t he Ci t y , t he Sh or e l i n e Com m u nity, and the County dated June 22, 2005, the Shoreline Community is annually obligated to pay the County from tax revenues, an amount equal to the County’s total retirement tax override levies and pass‐through an additional amount of taxes that would have been allocated to the County in the absence of the existence of the Shoreline Community. For the fiscal year ended June 30, 2022, $1.9 million and $2.6 million in retirement tax override levies and pass‐through payments, respectively, were paid to the County.
G. Bay Area Water Supply and Conservation Agency Revenue Bonds Surcharge
The City contracts with the City and County of San Francisco for the purchase of water from the Hetch Hetchy System operated by the San Francisco Public Utilities Commission (SFPUC). The City is also a member of the Bay Area Water Supply and Conservation Agency (BAWSCA), which represents the interests of all the 24 cities and water distric ts, as well as two private utilities, that purchase wholesale water from the SFPUC.
Under the 2009 25‐ year agreement with the SFPUC, a minimum wate r delivery level is included. On June 21, 2017, the City entered an agreement to permanently transfer all rights, title and interest of 1.0 MGD of annual Individual Supply Guarantee to the City of East Palo Alto (EPA).
After SFPUC approved the agreement, the City received a one‐time payment of $5.0 million in Fiscal Year 2017‐18 from EPA for the 1.0 MGD water rights.
For the fiscal year ended June 30, 2022, the City did not make any payment for the minimum water purchase requirement due to the SFPUC waiving the requirement based on the Governor’s July 8, 2021 Drought Executive Order.
In addition, under the agreement, the SFPUC issues revenue bonds and the debt service (which also includes an interest component) is paid for through rates over the life of the bonds. Prior assets under the previous agreement were transferred to the new agreement and assigned a life with an agreed upon rate of return of 5.13 percent.
BAWSCA issued Revenue Bonds (Bonds) in the principal amount of $335.8 million in January 2013 to prepay the capital cost recovery payment obligation and fund a stabilization fund. The Bonds mature in October 2034 and are secured by surcharges to the monthly water purchase charges imposed upon the participating members. The Bonds are not a debt obligation of any member, and BAWSCA’s failure to pay its Bonds would not constitute a default by any participating member.
The City paid its surcharge of $1.4 million during the fiscal year ended June 30, 2022, which is included as a component of cost of sales and services expenses in the Water Enterprise Fund. The surcharge for Fiscal Year 2022‐23 is estimated to be $1.5 million. 2022 2021 2020 2019 2018 2017 2016 2015
Measurement period 2021 2020 2019 2018 2017 2016 2015 2014 Total pension liability
Service cost $ 8,642 8,622 8,342 7,669 7,473 6,675 6,412 6,218 Interest on the total pension liability 32,778 31,427 29,850 28,405 27,198 26,269 25,058 23,873 Changes of assumptions ‐ ‐ ‐ (2,554) 22,221 ‐ (6,028) ‐ Differences between expected and actual experience 1,435 4,461 2,677 2,350 (2,154) (577) (568) ‐ Benefit payments, including refunds of
employee contributions (23,432) (21,764) (19,708) (18,056) (17,303) (15,518) (14,861) (13,823) Net change in total pension liability 19,423 22,746 21,161 17,814 37,435 16,849 10,013 16,268 Total pension liability, beginning 464,397 441,651 420,490 402,676 365,241 348,392 338,379 322,111 Total pension liability, ending $ 483,820 464,397 441,651 420,490 402,676 365,241 348,392 338,379 Plan fiduciary net position
Contributions, employer $ 15,273 18,696 17,514 17,917 12,413 11,318 8,673 7,796 Contributions, employee 5,489 3,959 3,549 3,513 3,121 3,065 3,148 3,147 Plan to plan resource movement ‐ ‐ ‐ (1) ‐ ‐ ‐ ‐ Investment income 78,758 16,690 20,477 24,062 29,071 1,328 5,709 38,300 Benefit payments, including refunds of
employee contributions (23,432) (21,764) (19,708) (18,056) (17,303) (15,518) (14,861) (13,823) Administrative expenses (347) (466) (219) (1,277) (378) (156) (288) ‐ Net change in plan fiduciary net position 75,741 17,115 21,613 26,158 26,924 37 2,381 35,420 Plan fiduciary net position, beginning 347,566 330,451 308,838 282,680 255,756 255,719 253,338 217,918 Plan fiduciary net position, ending $ 423,307 347,566 330,451 308,838 282,680 255,756 255,719 253,338 Plan net pension liability $ 60,513 116,831 111,200 111,652 119,996 109,485 92,673 85,041 Plan fiduciary net position as a percentage
of the total pension liability 87.5% 74.8% 74.8% 73.4% 70.2% 70.0% 73.4% 74.9% Covered payroll 47,644$ 46,084 43,994 40,657 39,034 38,450 36,233 34,163 Plan net pension liability as a percentage
of covered payroll 127.0% 253.5% 252.8% 274.6% 307.4% 284.7% 255.8% 248.9% Note to schedule:
*
Benefit Changes ‐ The figures above do not include any liability impact that may have resulted from plan changes, which occurred after the June 30, 2020 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Change in assumptions ‐ During measurement period 2014, the discount rate was 7.50%. During measurement period 2015, the discount rate was increased from 7.50 percent to 7.65 percent. There is no change in discount rate during measurement period 2016. During measurement period 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. During measurement period 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There are no change in assumptions during measurement periods 2019, 2020, and 2021.
Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only eight years of information is shown.
CITY OF MOUNTAIN VIEW
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios ‐ Miscellaneous Plan (Dollar in Thousands)
Fiscal Year Ended June 30,
101
2022 2021 2020 2019 2018 2017 2016 2015
Measurement period 2021 2020 2019 2018 2017 2016 2015 2014 Total pension liability
Service cost $ 7,933 7,613 7,066 6,677 6,857 5,945 6,061 6,311 Interest on the total pension liability 28,366 27,043 25,815 24,593 23,599 22,704 21,792 20,641 Changes of assumptions ‐ ‐ ‐ (1,385) 19,688 ‐ (5,345) ‐ Differences between expected and actual experience 2,993 2,235 2,998 1,416 (157) (1,633) 1,234 ‐ Benefit payments, including refunds of
employee contributions (19,902) (18,711) (17,734) (16,998) (15,977) (14,765) (13,721) (12,416) Net change in total pension liability 19,390 18,180 18,145 14,303 34,010 12,251 10,021 14,536 Total pension liability, beginning 399,718 381,538 363,393 349,090 315,080 302,829 292,808 278,272 Total pension liability, ending $ 419,108 399,718 381,538 363,393 349,090 315,080 302,829 292,808 Plan fiduciary net position
Contributions, employer $ 12,508 15,569 14,385 14,872 10,572 9,904 8,139 7,244 Contributions, employee 4,329 3,345 2,951 2,965 2,709 2,697 2,656 2,924 Plan to plan resource movement ‐ ‐ ‐ (1) ‐ ‐ 32 ‐ Investment income 65,428 13,769 17,013 20,199 24,545 1,117 4,852 32,936 Benefit payments, including refunds of
employee contributions (19,902) (18,711) (17,734) (16,998) (15,977) (14,765) (13,721) (12,416) Administrative expenses (289) (388) (184) (1,079) (321) (133) (246) ‐ Net change in plan fiduciary net position 62,074 13,584 16,431 19,958 21,528 (1,180) 1,712 30,688 Plan fiduciary net position, beginning 288,837 275,253 258,822 238,864 217,336 218,516 216,804 186,116 Plan fiduciary net position, ending $ 350,911 288,837 275,253 258,822 238,864 217,336 218,516 216,804 Plan net pension liability $ 68,197 110,881 106,285 104,571 110,226 97,744 84,313 76,004 Plan fiduciary net position as a percentage
of the total pension liability 83.7% 72.3% 72.1% 71.2% 68.4% 69.0% 72.2% 74.0% Covered payroll 27,301$ 26,188 24,248 22,764 23,263 22,493 22,547 23,051 Plan net pension liability as a percentage
of covered payroll 249.8% 423.4% 438.3% 459.4% 473.8% 434.6% 373.9% 329.7% Note to schedule:
* Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only eight years of information is shown.
CITY OF MOUNTAIN VIEW
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios ‐ Safety Plan (Dollar in Thousands)
Benefit Changes ‐ The figures above do not include any liability impact that may have resulted from plan changes, which occurred after the June 30, 2020 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Change in assumptions ‐ During measurement period 2014, the discount rate was 7.50%. During measurement period 2015, the discount rate was increased from 7.50 percent to 7.65 percent. There is no change in discount rate during measurement period 2016. During measurement period 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. During measurement period 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There are no change in assumptions during measurement periods 2019, 2020, and 2021.
Fiscal Year Ended June 30,
102
Miscellaneous Plan
2022 2021 2020 2019 2018 2017 2016 2015 2014
Actuarially determined contributions (ADC) $ 15,114 14,159 14,207 12,769 11,289 9,925 8,806 8,073 7,796 Contributions in relation to the ADC (17,342) (15,273) (18,696) (17,514) (17,917) (12,413) (11,318) (8,673) (7,796) Contribution deficiency (excess) $ (2,228) (1,114) (4,489) (4,745) (6,628) (2,488) (2,512) (600) ‐ Covered payroll $ 48,654 47,644 46,084 43,994 40,657 39,034 38,450 36,233 34,163 Contributions as a percentage of
covered payroll 35.6% 32.1% 40.6% 39.8% 44.1% 31.8% 29.4% 23.9% 22.8% Safety Plan
2022 2021 2020 2019 2018 2017 2016 2015 2014
Actuarially determined contributions $ 12,341 11,752 11,682 10,277 9,112 8,915 8,229 7,739 7,244 Contributions in relation to the ADC (13,748) (12,508) (15,569) (14,385) (14,872) (10,572) (9,904) (8,139) (7,244) Contribution deficiency (excess) $ (1,407) (756) (3,887) (4,108) (5,760) (1,657) (1,675) (400) ‐ Covered payroll $ 27,648 27,301 26,188 24,248 22,764 23,263 22,493 22,547 23,051 Contributions as a percentage of
covered payroll 49.7% 45.8% 59.5% 59.3% 65.3% 45.4% 44.0% 36.1% 31.4% ADC for fiscal year June 30, 2022
Actuarial valuation date June 30, 2019
Actuarial cost method Entry‐Age Normal Cost Method
Asset valuation method Actuarial value of assets
Inflation 2.50%
Salary increases Varies by entry age and services
Payroll growth 2.75%
Investment rate of return
Retirement age
Mortality
*
Fiscal Year Ended June 30,
Fiscal Year Ended June 30,
CITY OF MOUNTAIN VIEW
Required Supplementary Information (Unaudited)
Schedule of Employer Pension Contributions ‐ Miscellaneous and Safety Plans (Dollar in Thousands)
7.00%, net of pension plan investment and administrative expenses, includes inflation.
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period 1997 to 2015.
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2022 were as follows:
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre‐retirement and post‐retirement mortality rates includes 15 years of projected mortality improvements using 90% of Scale MP‐2016 published by the Society of Actuaries.
Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only nine years of information is shown. 103
2022 2021 2020 2019 2018
Measurement period 2021 2020 2019 2018 2017
Total OPEB liability
Service cost $ 3,428 3,320 3,336 3,231 3,054 Interest on the total OPEB liability 9,456 9,079 9,857 9,392 8,820 Changes of assumptions 4,921 ‐ (670) ‐ 15,660 Differences between expected and actual experience (13,543) ‐ (12,915) ‐ (9,020) Benefit payments, including refunds of
employee contributions (6,772) (6,183) (5,729) (5,459) (5,044) Net change in total OPEB liability (2,510) 6,216 (6,121) 7,164 13,470 Total pension OPEB, beginning 151,256 145,040 151,161 143,997 130,527 Total OPEB liability, ending $ 148,746 151,256 145,040 151,161 143,997 Plan fiduciary net position
Contributions, employer $ 6,772 8,497 8,014 13,233 12,424 Investment income 28,673 7,384 8,797 6,858 7,065 Benefit payments, including refunds of
employee contributions (6,772) (6,183) (5,729) (5,459) (5,044) Administrative expenses (53) (67) (27) (206) (51) Net change in plan fiduciary net position 28,620 9,631 11,055 14,426 14,394 Plan fiduciary net position, beginning 145,880 136,249 125,194 110,768 96,374 Plan fiduciary net position, ending $ 174,500 145,880 136,249 125,194 110,768 Plan net OPEB liability (asset) $ (25,754) 5,376 8,791 25,967 33,229 Plan fiduciary net position as a percentage
of the total OPEB liability 117.3% 96.4% 93.9% 82.8% 76.9% Covered payroll 49,104$ 50,838 49,135 46,799 44,181 Plan net OPEB liability (asset) as a percentage
of covered payroll (52.4%) 10.6% 17.9% 55.5% 75.2%
Note to schedule:
* Fiscal year ended June 30, 2018 was the first year of implementation of GASB Statement No. 75, therefore only five years of information is shown.
CITY OF MOUNTAIN VIEW
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios (Dollar in Thousands)
Change in assumptions ‐ During measurement period 2019, the discount rate was reduced from 6.50 percent to 6.25 percent. Demographic assumptions were change in accordance to the 2017 CalPERS Experience Study. There is no change in assumptions during measurement period 2020. During the measurement period 2021, the discount rate was reduced from 6.25 percent to 6.00 percent. Inflation rate was reduced from 2.75 percent to 2.50 percent. Other assumptions including projected salary increase, post retirement benefit increase, and other demographic assumptions were also changed.
Fiscal Year Ended June 30,
104
2022 2021 2020 2019 2018 2017
Actuarially determined contributions (ADC) $ 3,123 4,151 6,068 5,334 5,639 5,577 Contributions in relation to the ADC (5,848) (6,772) (8,497) (8,014) (13,233) (12,424) Contribution deficiency (excess) $ (2,725) (2,621) (2,429) (2,680) (7,594) (6,847) Covered payroll $ 49,418 49,104 50,838 49,135 46,799 44,181 Contributions as a percentage of
covered payroll 11.8% 13.8% 16.7% 16.3% 28.3% 28.1%
ADC for fiscal year June 30, 2022
Actuarial valuation date June 30, 2021
Actuarial cost method Entry‐Age Normal Cost Method
Asset valuation method Actuarial value of asset s
Inflation 2.50%
Projected salary increases 3.00%
Investment rate of return
Post Retirement Benefit Increase
Mortality
*
Fiscal Year Ended June 30,
CITY OF MOUNTAIN VIEW
Required Supplementary Information (Unaudited)
Schedule of Employer OPEB Contributions
(Dollar in Thousands)
Fiscal year ended June 30, 2018 was the first year of implementation of GASB Statement No. 75, therefore only six years of information is shown.
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2022 were as follows:
6.00%
For medical plan premiums: 5.70% for the year beginning January 1, 2022 and graded down until 4.00% ultimate rate is reached.
For vision premiums: 3.00%
Derived using CalPERS Membership Data for all Funds. Demographic actuarial assumptions used are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015, except for the MacLeod Watts Scale 2018 applied generationally as the basis to project future morality improvements. The representative mortality rates were those published by CalPERS, adjusted to back out 15 years of Scale MP‐2016 to central year 2015. 105
106
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CITY OF MOUNTAIN VIEW
Park Land Dedication Capital Projects Fund
Schedule of Revenues, Expenditures, and
Changes in Fund Balance ‐ Budget and Actual
For the Fiscal Year Ended June 30, 202
2 (Dollars in Thousands)
Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:
Use of money and property 1,460$ 1,460 (2,400) (3,860) Developer fees and contributions ‐ ‐ 21,269 21,269 Total revenues 1,460 1,460 18,869 17,409 Other financing sources (uses):
Transfers in ‐ ‐ 1,636 1,636 Transfers out (7,478) (39,273) (39,273) ‐ Total other financing sources (uses) (7,478) (39,273) (37,637) 1,636 Net change in fund balance (6,018) $ (37,813) (18,768) 19,045 Fund balance, beginning of year 98,457
Fund balance, end of year 79,689$
107
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2022
108
SPECIAL REVENUE FUNDS
The Gas Tax Fund accounts for gas tax revenues received from the State and expended for c onstruction and maintenance of City streets.
The Other Streets and Transportation Fund (Formerly Vehicle Registration Fees Fund) accounts for fees that voters approved to collect from vehicle registrations accounts for voters approved vehicle registrations fees and sales taxes used to fund local road improvements and repairs, and enhance transit, highways, expressways and active transportation.
The Construction and Conveyance Tax Fund accounts for revenues from taxes on real property transferred in the City. These revenues are used for acquisitio n, improvement, maintenance, expansion or implementation of the Capital Improvements Program.
The Other Developer Fees Fund accounts for revenues to be used to encourage development and rejuvenation of areas served by transit facilities.
The CSFRA / Rental Housing Committee Fund accounts for the activities related to stabilize rents and provide just cause eviction protections for certain rental units in the City.
The Mobile Home Rent Stabilization Ordinance Fund accounts for the activities related to stabilize rents and protect the rights for both the mobile home residents and the mobile park owners in the City.
The Housing Successor Fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Revitalization Authority. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.
The Shoreline Golf Links Fund accounts for revenues from user fees at Shoreline Golf Links and related golf course operations and improvements.
The Downtown Benefit Assessment District Fund accounts for revenue received for offstreet parking, fees paid in‐lieu of providing parking in the District and for annual ad valorem rate and direct assessments levied against the property owners within the District.
The General Special Purpose Fund accounts for fees paid for replacement trees and the CASp train ing program.
The Police Asset Forfeitures Fund accounts f o r f u n d s d e r i v e d f r o m c r i m i n a l a s s e t s s e i z e d b y p o l i c e , primarily from illegal narcotics sales activity.
The Grants Fund accounts for grants received, including Community Development Block Grants, Home Investment Partnership Act Grants, the Local Law Enforcement Bl ock Grant Program, the Supplemental Law Enforcement Services Grants and Traffic Safety grants.
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2022
109
The Cable Television Fund accounts for Public, Education and Government (PEG) fees colle cted by the cable providers and restricted for PEG channel support. The City passes a portion of these funds through to a third party to provide public, governmental and educational access television services.
The Deferred Assessments Fund accounts for a program which allows certain property owners to defer up to 100 percent of any special assessment levied on their property. The assessment becomes due upon certain specified occurrences.
DEBT SERVICE FUNDS
The Shoreline Regional Park Community 2011 Revenue Bonds Fund accounts for the resources used for the purpose of paying the principal, interest and related costs on the Shoreline Regional Park Community 2011 Revenue Bonds as they become due.
The Shoreline Regional Park Community 2018 Revenue Bonds Fund accounts for the resources used for the purpose of paying the principal, interest and related costs on the Shoreline Regional Park Community 2018 Revenue Bonds Series A and Series B as they become due.
The Special Assessments Fund a c c o u n t s f o r r e s o u r c e s f i n a n c e d b y s p e c i a l a s s e s s m e n t s l e v i e d against property receiving special benefits, contributions from other funds for general benefits and certain reserve requirements.
CAPITAL PROJECTS FUND
The Storm Drain Construction Fund accounts for revenues derived from off‐site drainage fees used for storm drain projects in the Capital Improvements Program.
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2022
(Dollars in Thousands)
Other Construction & Other
Streets and Conveyance Developer
Gas Tax Transportation Tax Fees
Cash and investments 1,902 $ 629 15,751 37,809 Restricted cash and investments ‐ ‐ ‐ ‐ Receivables:
Accounts 448 26 ‐ ‐ Interest 34 13 168 132 Loans and notes ‐ ‐ ‐ ‐ Inventory ‐ ‐ ‐ ‐ Deposits and prepaid items ‐ ‐ ‐ ‐ Total assets 2,38
4$ 668 15,919 37,941 Liabilities, deferred inflows of resources
and fund balances:
Accounts payable and accrued liabilities ‐ ‐ ‐ ‐ Due to other funds ‐ ‐ ‐ ‐ Refundable deposits ‐ ‐ ‐ ‐ Unearned revenue ‐ ‐ ‐ ‐ Total liabilities ‐ ‐ ‐ ‐ Nonspendable ‐ ‐ ‐ ‐ Restricted 2,384 668 15,919 2,181 Committed ‐ ‐ ‐ 35,760 Total fund balances 2,384 668 15,919 37,941 Total liabilities, deferred inflows of resources
and fund balances 2,384$ 668 15,919 37,941 SPECIAL REVENUE FUNDS
Assets:
Liabilities:
Fund balances:
110
Mobile Downtown
CSFRA / Rental Home Rent Benefit
Housing Stabilization Housing Shoreline Assessment
Committee Ordinance (MHRSO) Successor Golf Links District 1,371 535 1,273 416 20,635 ‐ ‐ ‐ 10 ‐ 175 ‐ ‐ 45 ‐ 6 1 ‐ 1 86 ‐ ‐ 11,410 ‐ ‐ ‐ ‐ ‐ 72 ‐ ‐ ‐ ‐ ‐ ‐ 1,552 536 12,683 544 20,721 38 5 ‐ 9 18 ‐ 292 ‐ ‐ ‐ ‐ ‐ ‐ 4 2 ‐ ‐ ‐ 396 ‐ 38 297 ‐ 409 20 ‐ ‐ ‐ 72 ‐ 1,514 239 12,683 ‐ 20,701 ‐ ‐ ‐ 63 ‐ 1,514 239 12,683 135 20,701 1,552 536 12,683 544 20,721 (Continued)
SPECIAL REVENUE FUNDS
111
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2022
(Dollars in Thousands)
General Police
Special Asset Cable
Purpose Forfeitures Grants Television
Cash and investments 590 481 9,578 800 Restricted cash and investments ‐ ‐ ‐ ‐ Receivables:
Accounts ‐ ‐ ‐ ‐ Interest 2 ‐ 33 ‐ Loans and notes ‐ ‐ 16,555 ‐ Inventory ‐ ‐ ‐ ‐ Deposits and prepaid items ‐ ‐ 609 ‐ Total assets 592 481 26,775 800 Liabilities, deferred inflows of resources
and fund balances:
Accounts payable and accrued liabilities 1 ‐ 9 ‐ Due to other funds ‐ ‐ ‐ ‐ Refundable deposits 347 ‐ ‐ ‐ Unearned revenue ‐ ‐ ‐ ‐ Total liabilities 348 ‐ 9 ‐ Nonspendable ‐ ‐ ‐ ‐ Restricted ‐ 481 26,76 6 800
Committed 244 ‐ ‐ ‐ Total fund balances 244 481 26,766 800 Total liabilities, deferred inflows of resources
and fund balances 592 481 26,775 800 Assets:
SPECIAL REVENUE FUNDS
Liabilities:
Fund balances:
112
SPECIAL CAPITAL
REVENUE FUNDS PROJECTS FUND
Shoreline Shoreline Total
Regional Park Regional Park Nonmajor
Deferred Community 2011 Community 2018 Special Storm Drain Governmental Assessments Revenue Bonds Revenue Bonds Assessments Construction Funds 390 ‐ ‐ 45 454 92,659 ‐ 6,500 ‐ ‐ ‐ 6,510
‐ ‐ ‐ ‐ ‐ 694 ‐ ‐ ‐ ‐ 5 481 ‐ ‐ ‐ ‐ ‐ 27,965 ‐ ‐ ‐ ‐ ‐ 72 ‐ ‐ ‐ ‐ ‐ 609 390 6,500 ‐ 45 459 128,990 ‐ ‐ ‐ ‐ ‐ 80 ‐ ‐ ‐ ‐ ‐ 292 ‐ ‐ ‐ ‐ ‐ 353 ‐ ‐ ‐ ‐ ‐ 396 ‐ ‐ ‐ ‐ ‐ 1,121 ‐ ‐ ‐ ‐ ‐ 72 390 6,500 ‐ 45 459 91,73 0 ‐ ‐ ‐ ‐ ‐ 36,067 390 6,500 ‐ 45 459 127,869 390 6,500 ‐ 45 459 128,990 DEBT SERVICE FUNDS
113
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Other Construction & Other
Streets and Conveyance Developer
Gas Tax Transportation Tax Fees
Revenues:
Property taxes ‐ $ ‐ ‐ ‐ Other taxes ‐ ‐ 10,292 ‐ Use of money and property (32) 42 (270) (537) Intergovernmental 3,624 765 ‐ ‐ Charges for services ‐ ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ 24,099 Other ‐ ‐ ‐ ‐ Total revenues 3,592 807 10,022 23,562 Expenditures:
Current:
General government ‐ ‐ ‐ ‐ Public safety ‐ ‐ ‐ ‐ Public works ‐ 26 ‐ ‐ Community development ‐ ‐ ‐ ‐ Culture and recreation ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ Debt service:
Principal ‐ ‐ ‐ ‐ Interest and fiscal charges ‐ ‐ ‐ ‐ Total expenditures ‐ 26 ‐ ‐ Excess (deficiency) of revenues
over (under) expenditures 3,592 781 10,022 23,562 Other financing sources (uses):
Transfers in 89 62 937 181 Transfers out (2,938) (1,102) (6,666) (7,800) Total other financing sources (uses) (2,849) (1,040) (5,729) (7,619) Net change in fund balances 743 (259) 4,293 15,943 Fund balances, beginning of year 1,641 927 11,626 21,998 Fund balances, end of year 2,384$ 668 15,919 37,941 SPECIAL REVENUE FUNDS
114
Mobile Downtown
CSFRA / Rental Home Rent Benefit
Housing Stabilization Housing Shoreline Assessment
Committee Ordinance (MHRSO) Successo r Golf Links District ‐ ‐ ‐ ‐ 1,118 ‐ ‐ ‐ ‐ ‐ (38) (5) 171 (12) (632) ‐ ‐ ‐ ‐ 3 1,487 292 ‐ 3,783 206 ‐ ‐ ‐ ‐ 170 ‐ ‐ ‐ 51 ‐ 1,449 287 171 3,822 865 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,453 155 250 ‐ 483 ‐ ‐ ‐ 3,418 ‐ 26 ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,479 155 250 3,418 483 (30) 132 (79) 404 382 ‐ 107 ‐ ‐ ‐ (11) ‐ ‐ (373) (111) (11) 107 ‐ (373) (111) (41) 239 (79) 31 271 1,555 ‐ 12,762 104 20,430 1,514 239 12,683 135 20,701 (Continued)
SPECIAL REVENUE FUNDS
115
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
General Police
Special Asset Cable
Purpose Forfeitures Grants Television
Revenues:
Property taxes ‐ ‐ ‐ ‐ Other taxes 16 ‐ ‐ ‐ Use of money and property (19) (1) 15 ‐ Intergovernmental ‐ 2 8,208 ‐ Charges for services (19) ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ ‐ Other ‐ ‐ ‐ 180 Total revenues (22) 1 8,223 180 Expenditures:
Current:
General government ‐ ‐ ‐ 137 Public safety ‐ 26 203 ‐ Public works ‐ ‐ ‐ ‐ Community development 13 ‐ 293 ‐ Culture and recreation ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ Debt service:
Principal ‐ ‐ ‐ ‐ Interest and fiscal charges ‐ ‐ ‐ ‐ Total expenditures 13 26 496 137 Excess (deficiency) of revenues
over (under) expenditures (35) (25) 7,727 43 Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐ Transfers out ‐ ‐ (350) ‐ Total other financing sources (uses) ‐ ‐ (350) ‐ Net change in fund balances (35) (25) 7,377 43 Fund balances, beginning of year 279 506 19,389 757 Fund balances, end of year 244 481 26,766 800 SPECIAL REVENUE FUNDS
116
SPECIAL CAPITAL
REVENUE FUNDS PROJECTS FUND
Shoreline Shoreline Total
Regional Park Regional Park Nonmajor
Deferred Community 2011 Community 201 8 Special Storm Drain Governmental Assessments Revenue Bond s Revenue Bonds Assessments Construction Funds ‐ ‐ ‐ ‐ ‐ 1,118 ‐ ‐ ‐ ‐ ‐ 10,308 ‐ 2 ‐ ‐ (12) (1,328) ‐ ‐ ‐ ‐ ‐ 12,602 ‐ ‐ ‐ ‐ ‐ 5,749 ‐ ‐ ‐ ‐ ‐ 24,269 ‐ ‐ ‐ ‐ 58 289 ‐ 2 ‐ ‐ 46 53,007 ‐ ‐ ‐ ‐ ‐ 137 ‐ ‐ ‐ ‐ ‐ 229 ‐ ‐ ‐ ‐ ‐ 26 ‐ ‐ ‐ ‐ ‐ 2,647 ‐ ‐ ‐ ‐ ‐ 3,418 ‐ ‐ ‐ ‐ ‐ 26
‐ 2,085 ‐ ‐ ‐ 2,085 ‐ 1,254 3,079 ‐ ‐ 4,333 ‐ 3,339 3,079 ‐ ‐ 12,901 ‐ (3,337) (3,079) ‐ 46 40,106 ‐ 3,337 3,079 ‐ 8 7,800 ‐ ‐ ‐ ‐ (32) (19,383) ‐ 3,337 3,079 ‐ (24) (11,583) ‐ ‐ ‐ ‐ 22 28,523 390 6,500 ‐ 45 437 99,346 390 6,500 ‐ 45 459 127,869 DEBT SERVICE FUNDS
117
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ‐ Budget and Actual
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Final Final
Budget Actual Variance Budget Actual Variance
Revenues:
Property taxes ‐ $ ‐ ‐ ‐ ‐ ‐ Other taxes ‐ ‐ ‐ ‐ ‐ ‐ Licenses, permits and fee
s ‐ ‐ ‐ ‐ ‐ ‐ Use of money and property 79 (32) (111) 38 42 4 Intergovernmental 3,690 3,624 (66) 2,455 765 (1,690) Charges for services ‐ ‐ ‐ ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ ‐ ‐ ‐ Other ‐ ‐ ‐ ‐ ‐ ‐ Total revenues 3,769 3,592 (177) 2,493 807 (1,686) Expenditures:
Current:
General government:
City manager ‐ ‐ ‐ ‐ ‐ ‐ Public safety:
Police ‐ ‐ ‐ ‐ ‐ ‐ Public works ‐ ‐ ‐ 340 26 314 Community development ‐ ‐ ‐ ‐ ‐ ‐ Culture and recreation:
Community services ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ 340 26 314 Excess (deficiency) of revenues
over (under) expenditures 3,769 3,592 (177) 2,153 781 (1,372) Other financing sources (uses):
Transfers in ‐ 89 89 ‐ 62 62 Transfers out (2,938) (2,938) ‐ (2,322) (1,102) 1,220 Total other financing sources (uses) (2,938) (2,849) 89 (2,322) (1,040) 1,282 Net change in fund balances 831$ 743 (88) (169) (259) (90) Fund balances, beginning of year 1,641 927 Fund balances, end of year 2,384$ 668 $
Gas Tax Other Streets and Transportation
118
Final Final Final
Budget Actual Variance Budget Actual Variance Budget Actual Variance
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,004 10,292 6,288 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 486 (270) (756) 307 (537) (844) 18 (38) (56) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,525 1,487 (38) ‐ ‐ ‐ ‐ 24,099 24,099 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,490 10,022 5,532 307 23,562 23,255 1,543 1,449 (94)
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 42 ‐ 42 1,991 1,453 538 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 160 26 134 ‐ ‐ ‐ 42 ‐ 42 2,151 1,479 672 4,490 10,022 5,532 265 23,562 23,297 (608) (30) 578 ‐ 937 937 ‐ 181 181 ‐ ‐ ‐ (6,666) (6,666) ‐ (7,800) (7,800) ‐ (11) (11) ‐ (6,666) (5,729) 937 (7,800) (7,619) 181 (11) (11) ‐ (2,176) 4,293 6,469 (7,535) 15,943 23,478 (619) (41) 578 11,626 21,998 1,555
15,919$ 37,941$ 1,514$
Construction & Conveyance Tax Other Developer Fees CSFRA / Rental Housing Committee 119
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ‐ Budget and Actual
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Final Final
Budget Actual Variance Budget Actual Variance
Revenues:
Property taxes ‐ ‐ ‐ ‐ ‐ ‐ Other taxes ‐ ‐ ‐ ‐ ‐ ‐ Licenses, permits and fee
s ‐ ‐ ‐ ‐ ‐ ‐ Use of money and property ‐ (5) (5) 22 171 149 Intergovernmental ‐ ‐ ‐ ‐ ‐ ‐ Charges for services ‐ 292 292 ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ ‐ ‐ ‐ Other ‐ ‐ ‐ ‐ ‐ ‐ Total revenues ‐ 287 287 22 171 149 Expenditures:
Current:
General government:
City manager ‐ ‐ ‐ ‐ ‐ ‐ Public safety:
Police ‐ ‐ ‐ ‐ ‐ ‐ Public works ‐ ‐ ‐ ‐ ‐ ‐ Community development 399 155 244 259 250 9 Culture and recreation:
Community services ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ ‐ ‐ Total expenditures 399 155 244 259 250 9 Excess (deficiency) of revenues
over (under) expenditures (399) 132 531 (237) (79) 158 Other financing sources (uses):
Transfers in 107 107 ‐ ‐ ‐ ‐ Transfers out ‐ ‐ ‐ ‐ ‐ ‐ Total other financing sources (uses) 107 107 ‐ ‐ ‐ ‐ Net change in fund balances (292) 239 531 (237) (79) 158 Fund balance, beginning of year ‐ 12,762 Fund balance, end of year 239$ 12,683 $
Mobile Home Rent Stabilization Ordinance
(MHRSO) Housing Successor
120
Final Final Final
Budget Actual Variance Budget Actual Variance Budget Actual Variance
‐ ‐ ‐ 1,099 1,118 19 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 16 16 ‐ ‐ ‐ 156 ‐ (156) ‐ ‐ ‐ 5 (12) (17) 275 (632) (907) 9 (19) (28) ‐ ‐ ‐ 3 3 ‐ ‐ ‐ ‐ 3,892 3,783 (109) 223 206 (17) 50 (19) (69) ‐ ‐ ‐ ‐ 170 170 ‐ ‐ ‐ 15 51 36 ‐ ‐ ‐ ‐ ‐ ‐ 3,912 3,822 (90) 1,756 865 (891) 59 (22) (81)
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 713 483 230 156 13 143 3,555 3,418 137 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,555 3,418 137 713 483 230 156 13 143 357 404 47 1,043 382 (661) (97) (35) 62 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (373) (373) ‐ (111) (111) ‐ ‐ ‐ ‐ (373) (373) ‐ (111) (111) ‐ ‐ ‐ ‐ (16) 31 47 932 271 (661) (97) (35) 62 104 20,430 279
135$ 20,701$ 244$
Shoreline Golf Links Downtown Benefit Assessment District General Special Purpose 121
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ‐ Budget and Actual
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Final Final
Budget Actual Variance Budget Actual Variance
Revenues:
Property taxes ‐ ‐ ‐ ‐ ‐ ‐ Other taxes ‐ ‐ ‐ ‐ ‐ ‐ Licenses, permits and fee
s ‐ ‐ ‐ ‐ ‐ ‐ Use of money and property ‐ (1) (1) ‐ 15 15 Intergovernmental 2 2 ‐ 1,076 8,208 7,132 Charges for services ‐ ‐ ‐ ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ ‐ ‐ ‐ Other ‐ ‐ ‐ ‐ ‐ ‐ Total revenues 2 1 (1) 1,076 8,223 7,147 Expenditures:
Current:
General government:
City manager ‐ ‐ ‐ ‐ ‐ ‐ Public safety:
Police 497 26 471 203 203 ‐ Public works ‐ ‐ ‐ ‐ ‐ ‐ Community development ‐ ‐ ‐ 5,401 293 5,108 Culture and recreation:
Community services ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay 11 ‐ 11 ‐ ‐ ‐ Total expenditures 508 26 482 5,604 496 5,108 Excess (deficiency) of revenues
over (under) expenditures (506) (25) 481 (4,528) 7,727 12,255 Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐ ‐ ‐ Transfers out ‐ ‐ ‐ (350) (350) ‐ Total other financing sources (uses) ‐ ‐ ‐ (350) (350) ‐ Net change in fund balances (506) (25) 481 (4,878) 7,377 12,255 Fund balances, beginning of year 506 19,389 Fund balances, end of year 481 26,766
Police Asset Forfeitures Grants
122
Final Final Final
Budget Actual Variance Budget Actual Variance Budget Actual Variance
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 13 (12) (25) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 180 180 ‐ ‐ ‐ ‐ 10 58 48 180 180 ‐ ‐ ‐ ‐ 23 46 23
248 137 111 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 248 137 111 ‐ ‐ ‐ ‐ ‐ ‐ (68) 43 111 ‐ ‐ ‐ 23 46 23 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 8 8 ‐ ‐ ‐ ‐ ‐ ‐ (32) (32) ‐ ‐ ‐ ‐ ‐ ‐ ‐ (32) (24) 8 (68) 43 111 ‐ ‐ ‐ (9) 22 31 757 390 437
800 390 459
Deferred Assessments Storm Drain Construction Cable Television 123
124
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Internal Service Funds
For the Fiscal Year Ended June 30, 2022
125
The Equipment Maintenance and Replacement Fund accounts for equipment maintenance services provided to other funds and the replacement of certain equipment.
The Workers' Compensation Insurance Fund accounts for the City's self‐insurance program for workers' compensation benefits and for the administration of safety and loss prevention programs.
The Unemployment Self‐Insurance Fund accounts for State and Federal‐mandated unemployment insurance benefits for employees.
The Liability Self‐Insurance Fund accounts for the City's general liability self‐insurance and property insurance programs.
The Retirees' Health Plan Fund accounts for the health plan contributions for retirees of the City and the funds set aside for future retirees' benefits.
The Employee Benefits Plan Fund accounts for the City's self‐insurance vision and other benefit s for City employees.
CITY OF MOUNTAIN VIEW
Internal Service Funds
Combining Statement of Net Position
June 30, 2022
(Dollars in Thousands)
Equipment Workers'
Maintenance & Compensation Unemployment
Replacement Insurance Self‐Insurance
Assets:
Current assets:
Cash and investments 26,186$ 12,348 504 Restricted cash and investments ‐ 33 ‐ Receivables:
Accounts ‐ ‐ ‐ Interest 138 52 2 Due from other funds 546 ‐ ‐ Total assets 26,870 12,433 506 Liabilities:
Current liabilities:
Accounts payable and accrued liabilities
74 28 ‐
Due to other funds ‐ ‐ ‐ Current portion of accrued compensated absences 24 ‐ ‐ Current portion of accrued self‐insurance costs ‐ 2,376 ‐ Total current liabilities 98 2,404 ‐ Noncurrent liabilities:
Noncurrent portion of accrued compensated absences 122 ‐ ‐ Noncurrent portion of accrued self‐insurance costs ‐ 5,490 ‐ Total liabilities 220 7,894 ‐ Net position:
Unrestricted 26,650 4,539 506 Total net position 26,650$ 4,539 506 126
Total
Liability Retirees' Employee Internal
Self‐Insurance Health Plan Benefits Plan Service Funds 3,320 ‐ 471 42,829 816 ‐ ‐ 849 ‐ 965 ‐ 965 17 ‐ 2 211 ‐ ‐ ‐ 546 4,153 965 473 45,400 70 ‐ 1 173 ‐ 546 ‐ 546 ‐ ‐ ‐ 24 804 ‐ ‐ 3,180 874 546 1 3,923 ‐ ‐ ‐ 122 627 ‐ ‐ 6,117 1,501 546 1 10,162 2,652 419 472 35,238 2,652 419 472 35,238 127
CITY OF MOUNTAIN VIEW
Internal Service Funds
Combining Statement of Revenues, Expenses, and
Changes in Net Position
For the Fiscal Year Ended June 30, 202
2 (Dollars in Thousands)
Equipment Workers'
Maintenance & Compensation Unemployment
Replacement Insurance Self‐Insurance
Operating revenues:
Charges for services 2,791 $ 2,142 50 Other 149 78 ‐ Total operating revenues 2,940 2,220 50 Operating expenses:
Salaries and related expenses 1,436 200 ‐ Insurance claims and premiums ‐ 2,692 27 General and administrative 2,479 152 ‐ Depreciation 3 ‐ ‐ Total operating expenses 3,918 3,044 27 Operating income (loss) (978) (824) 23 Nonoperating revenues:
Investment income (1,037) (380) (16) Income (loss) before transfers (2,015) (1,204) 7 Transfers in 3,308 ‐ ‐ Transfers out (9,121) ‐ ‐ Change in net position (7,828) (1,204) 7 Net position, beginning of year 34,478 5,743 499 Net position, end of year 26,650$ 4,539 506 128
Total
Liability Retirees' Employee Internal
Self‐Insurance Health Plan Benefits Plan Service Funds
2,809 4,273 50 12,115 ‐ 995 ‐ 1,222 2,809 5,268 50 13,337 ‐ 5,266 39 6,941 3,136 ‐ ‐ 5,855 1,660 28 3 4,322 ‐ ‐ ‐ 3 4,796 5,294 42 17,121 (1,987) (26) 8 (3,784) (117) 28 (17) (1,539) (2,104) 2 (9) (5,323) ‐ ‐ ‐ 3,308 ‐ ‐ ‐ (9,121) (2,104) 2 (9) (11,136) 4,756 417 481 46,374 2,652 419 472 35,238 129
CITY OF MOUNTAIN VIEW
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Equipment Workers'
Maintenance & Compensation Unemployment
Replacement Insurance Self‐Insurance
Cash flows from operating activities:
Cash receipts from customers 2,940 $ 2,220 50 Cash paid to suppliers for goods and services (2,455) (681) (27) Cash paid to employees for services (1,432) (200) ‐ Claims paid ‐ (1,168) ‐ Net cash provided by (used in) operating activitie
s (947) 171 23 Cash flows from noncapital financing activities:
Transfers in 3,308 ‐ ‐ Transfers out (9,121) ‐ ‐ Borrowing received from (paid to) other funds (546) ‐ ‐ Net cash provided by (used in) noncapital
financing activities (6,359) ‐ ‐ Cash flows from investing activities:
Interest received (loss) (1,036) (383) (16) Net increase (decrease) in cash and cash equivalents (8,342) (212) 7 Cash and cash equivalents, beginning of year 34,528 12,593 497 Cash and cash equivalents, end of year 26,186$ 12,381 504 Reconciliation of cash and cash equivalents:
Cash and investments 26,186$ 12,348 504 Restricted cash and investments ‐ 33 ‐ Total cash and cash equivalents 26,186$ 12,381 504 Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities:
Operating income (loss) (978)$ (824) 23 Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 3 ‐ ‐ Changes in assets and liabilities:
Decrease (increase) in accounts receivable ‐ ‐ ‐ and accrued liabilities 24 11 ‐ Increase (decrease) in accrued
compensated absences 4 ‐ ‐ Increase (decrease) in accrued
self‐insurance costs ‐ 984 ‐ Net cash provided by (used in) operating activities (947)$ 171 23 130
Total
Liability Retirees' Employee Internal
Self‐Insurance Health Plan Benefits Plan Service Funds
2,809 4,303 50 12,372 (4,732) (28) (4) (7,927) ‐ (5,266) (39) (6,937) (139) ‐ ‐ (1,307) (2,062) (991) 7 (3,799) ‐ ‐ ‐ 3,308 ‐ ‐ ‐ (9,121) ‐ 546 ‐ ‐ ‐ 546 ‐ (5,813) (113) 30 (15) (1,533) (2,175) (415) (8) (11,145) 6,311 415 479 54,823 4,136 ‐ 471 43,678 3,320 ‐ 471 42,829 816 ‐ ‐ 849 4,136 ‐ 471 43,678 (1,987) (26) 8 (3,784) ‐ ‐ ‐ 3 ‐ (965) ‐ (965) 64 ‐ (1) 98 ‐ ‐ ‐ 4 (139) ‐ ‐ 845 (2,062) (991) 7 (3,799) 131
132
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Custodial Funds
For the Fiscal Year Ended June 30, 2022
133
The Fire Union Custodial Fund accounts for money received on behalf of the Fire Union used fo r union activities.
The Police Union Custodial Fund accounts for money received on behalf of the Police Union used for union activities.
The Flexible Benefits Plan Custodial Fund accounts for money received from employees for the employer's flexible benefits plan established under Internal Revenue Code Section 125.
The Center for the Performing Arts Custodial Fund accounts for money received by the Center for the Performing Arts on behalf of the event organizers.
CITY OF MOUNTAIN VIEW
Custodial Funds
Combining Statement of Fiduciary Net Position
June 30, 2022
(Dollars in Thousands)
Flexible Center For the
Fire Police Benefits Performing
Union Union Plan Arts Total
Assets:
Cash and investments 9$ 29 ‐ ‐ 38 Restricted cash and investments ‐ ‐ 143 260 403 Total assets 9 29 143 260 441 Restricted for others 9$ 29 143 260 441 Net Position:
134
CITY OF MOUNTAIN VIEW
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Flexible Center For the
Fire Police Benefits Performing
Union Union Plan Arts Total
Additions:
Fees and others collected 43$ 29 107 343 522 Distribution to others 76 29 100 382 587 Change in net position (33) ‐ 7 (39) (65) 42 29 136 299 506 9$ 29 143 260 441 Deductions:
Net position, beginning of year
Net position, end of year
135
136
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Statistical Section
For the Fiscal Year Ended June 30, 2022
137
This section of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.
Financial Trends
These schedules contain trend in formation to help the reader un derstand how the City’s financial performance and well‐being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess t he City’s most significant local revenue source, the property tax.
Debt Capacity
These schedules 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.
Demographic and Economic Information
These schedules offer demographic and economic indicators to he lp the reader understand the environment within which the City’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.
Sources
Unless otherwise noted, the information in these schedules is d erived from the Annual Comprehensive Financial Reports for the relevant year.
Schedule 1
Fiscal Year Ended June 30,
2013 2014 2015 2016
Governmental activities
Net investment in capital assets $433,059 456,410 454,939 450,011 Restricted 148,253 171,881 194,850 256,471 Unrestricted 134,551 (13,764) (1) (3,057) (11,492) Total governmental activities net position $715,863 614,527 646,732 694,990 Business‐type activities
Net investment in capital assets $83,040 82,850 84,170 82,555 Unrestricted 41,971 30,417 32,410 38,244 Total business‐type activities net position $125,011 113,267 116,580 120,799 Primary government
Net investment in capital assets $516,099 539,260 539,109 532,566 Restricted 148,253 171,881 194,850 256,471 Unrestricted 176,522 16,653 (1) 29,353 26,752 Total primary government net position $840,874 727,794 763,312 815,789 (1) The Unrestricted Net Position since fiscal year ended June 30, 2014 decreased due to the implementation of GASB No. 68.
(2) The Unrestricted Net Position decreased in fiscal year ended June 30, 2018 due to the implementation of GASB No. 75.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Net Position by Component
Last Ten Fiscal Years
(Dollars in Thousands)
138
Schedule 1
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
446,280 450,851 466,424 467,378 467,855 502,737 319,980 382,993 463,224 516,825 562,840 624,062 20,918 (42,935) (2) (31,615) (1,976) 10,977 66,457 787,178 790,909 898,033 982,227 1,041,672 1,193,256 80,809 79,783 86,332 89,969 86,020 87,218 51,586 78,278 82,193 93,692 106,155 124,051 132,395 158,061 168,525 183,661 192,175 211,269 527,089 530,634 552,756 557,347 553,875 589,955 319,980 382,993 463,224 516,825 562,840 624,062 72,504 35,343 (2) 50,578 91,716 117,132 190,508 919,573 948,970 1,066,558 1,165,888 1,233,847 1,404,525 0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
($ 000)
CITY OF MOUNTAIN VIEW, CALIFORNIA
Net Position by Component
Primary Government
Net investment in capital assets Restricted Unrestricted 139
Schedule 2
Fiscal Year Ended June 30,
2013 2014 2015 2016
Expenses
Governmental activities
General government 31,825 $ 32,517 33,782 35,510 Public safety 50,818 51,719 51,946 53,538
Public works 26,967 13,264 30,630 31,052
Community development 8,134 15,013 10,501 11,991
Culture and recreation 29,703 30,623 30,083 30,105
Interest on long term debt 3,368 2,998 2,178 1,860
Total governmental activities expenses 150,815 146,134 159,120 164,056 Business‐type activities
Water 26,199 24,168 26,001 27,809
Wastewater 14,167 13,962 15,433 17,332
Solid Waste 10,989 12,124 11,199 11,945
Total business‐type activities expenses 51,355 50,254 52,633 57,086 Total primary government expenses 202,170 $ 196,388 211,753 221,142 Program Revenues
Governmental activities
Charges for services
General government 25,966 $ 24,584 26,852 28,846 Public safety 1,952 1,988 1,849 1,643
Public works 10,753 10,276 10,122 3,911
Community development 13,117 14,483 10,487 11,941
Culture and recreation 4,631 5,023 5,313 5,106
Operating grants and contributions 4,643 4,507 4,756 4,297 Capital grants and contributions 20,293 21,859 21,895 31,291 Total government activities program revenues 81,355 82,720 81,274 87,035 Business‐type activities
Charges for services:
Water 25,823 28,887 26,914 27,953
Wastewater 14,558 15,367 15,925 19,730
Solid Waste 11,445 11,864 12,462 13,125
Operating grants and contributions ‐ ‐ ‐ ‐ Capital grants and contributions 776 187 552 385
Total business‐type activities program revenues 52,602 56,305 55,853 61,193 Total primary government program revenues 133,957 $ 139,025 137,127 148,228 Net (Expense) Revenue
Governmental activities (69,460) $ (63,414) (77,846) (77,021) Business‐type activities 1,247 6,051 3,220 4,107
Total primary government net expense (68,213) $ (57,363) (74,626) (72,914) CITY OF MOUNTAIN VIEW, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(Dollars in Thousands)
140
Schedule 2
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
38,460 44,602 46,797 48,167 51,531 50,952 57,759 66,688 70,435 76,853 77,385 62,335 29,541 36,057 35,195 40,789 39,487 42,119 13,564 18,206 18,859 20,423 17,143 15,726 31,275 35,698 35,619 58,221 35,164 33,840 1,732 1,633 3,971 4,278 4,176 4,179 172,331 202,884 210,876 248,731 224,886 209,151 30,459 35,101 35,868 37,522 36,981 32,425 18,250 17,294 19,526 20,109 21,848 22,359 11,762 13,235 13,682 15,077 13,573 12,543 60,471 65,630 69,076 72,708 72,402 67,327 232,802 268,514 279,952 321,439 297,288 276,478 34,198 39,415 53,704 39,191 43,087 59,868 1,205 1,333 1,407 1,270 801 823 3,165 3,546 3,906 2,916 3,397 3,553 14,055 20,485 18,266 15,229 13,123 14,352 5,057 5,315 5,741 4,993 4,903 6,664 3,902 3,265 5,111 6,637 4,572 20,073 68,541 68,479 62,861 81,176 56,217 94,132 130,123 141,838 150,996 151,412 126,100 199,465 33,847 40,571 34,844 38,092 38,205 36,373 22,818 22,369 23,513 25,850 22,962 27,347 14,053 14,870 15,588 15,837 14,731 14,967 ‐ ‐ ‐ ‐ ‐ 546 2,443 12,761 2,636 5,014 5,033 9,465 73,161 90,571 76,581 84,793 80,931 88,698 203,284 232,409 227,577 236,205 207,031 288,163 (42,208) (61,046) (59,880) (97,319) (98,786) (9,686) 12,690 24,941 7,505 12,085 8,529 21,371 (29,518) (36,105) (52,375) (85,234) (90,257) 11,685 141
Schedule 2
Fiscal Year Ended June 30,
2013 2014 2015 2016
General Revenues and Other Changes in Net Position
Governmental activities
Taxes:
Property taxes 58,515 $ 62,601 64,954 71,563
Sales taxes 16,744 16,935 19,773 21,401
Transient occupancy tax 4,668 5,595 6,559 6,591
Utility users tax 7,954 7,335 7,988 9,898
Nonregulatory franchise and business 4,241 4,633 4,793 4,954 Intergovernmental revenue 222 209 209 211
Investment income 966 3,870 4,944 8,551
Other ‐ 1,091 575 1,724
Transfers 510 739 256 386
Total government activities 93,820 103,008 110,051 125,279 Business‐type activities
Investment income 22 394 349 498
Transfers (510) (739) (256) (386)
Total business‐type activities (488) (345) 93 112
Total primary government 93,332$ 102,663 110,144 125,391 Change in Net Position
Change in net position before extraordinary
and special items:
Governmental activities 24,360$ 39,594 32,205 48,258 Business‐type activities 759 5,706 3,313 4,219
Total primary government 25,119 45,300 35,518 52,477 Special items:
Capital assets contributed from Successor Agency ‐ 16,679 ‐ ‐ Land held contributed from Successor Agency ‐ 6,250 ‐ ‐ Change in net position 25,119$ 68,229 35,518 52,477
CITY OF MOUNTAIN VIEW, CALIFORNI
A
Changes in Net Position
Last Ten Fiscal Years
(Dollars in Thousands)
142
Schedule 2
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
86,373 92,478 95,420 107,192 119,678 128,861 21,829 20,713 25,058 19,792 18,284 23,456 7,043 7,057 7,051 5,602 1,918 4,437 8,573 8,136 7,850 7,870 7,654 8,717 4,997 5,364 5,549 7,886 9,408 11,784 219 228 219 245 242 281 1,314 1,459 26,411 33,613 1,056 (14,108) 2,859 ‐ ‐ ‐ ‐ ‐ 1,189 (588) (554) (687) (9) 47 134,396 134,847 167,004 181,513 158,231 163,475 95 137 2,405 2,364 (24) (2,230) (1,189) 588 554 687 9 (47) (1,094) 725 2,959 3,051 (15) (2,277) 133,302 135,572 169,963 184,564 158,216 161,198 92,188 73,801 107,124 84,194 59,445 153,789 11,596 25,666 10,464 15,136 8,514 19,094 103,784 99,467 117,588 99,330 67,959 172,883 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 103,784 99,467 117,588 99,330 67,959 172,883 143
Schedule 3
Fiscal Year Ended June 30,
2013 2014 2015 2016
General Fund
Nonspendable 5,828 $ 3,276 1,847 523 Restricted ‐ ‐ ‐ ‐ Committed 42,626 47,771 53,622 53,399 Assigned 1,222 1,498 1,294 1,860
Unassigned 35,150 36,880 44,395 52,459
Total General Fund 84,826 $ 89,425 101,158 108,241 All Other Governmental Funds
Nonspendable 76 $ 67 69 57
Restricted 191,843 218,699 228,910 256,281
Committed ‐ ‐ 930 4,149 Unassigned ‐ (18) (18) (3) Total all other governmental funds 191,919$ 218,748 229,891 260,484 CITY OF MOUNTAIN VIEW, CALIFORNIA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Dollars in Thousands)
144
Schedule 3
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
541 407 519 3,757 4,292 835 410 420 424 430 437 436 58,655 68,483 74,881 83,827 83,453 96,704 2,094 2,202 2,819 4,604 4,044 5,920 56,979 55,913 64,539 59,394 67,792 93,390 118,679 127,425 143,182 152,012 160,018 197,285 64 60 72 17,051 17,060 72 318,281 382,132 532,282 586,008 632,852 696,443 17,027 10,553 8,175 13,318 20,869 36,067 ‐ (55) (128) ‐ ‐ ‐ 335,372 392,690 540,401 616,377 670,781 732,582 0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
($ 000)
CITY OF MOUNTAIN VIEW, CALIFORNIA
Fund Balance for General Fund
Nonspendable Restricted Committed Assigned Unassigned
145
Schedule 4
2013 2014 2015 2016 2017
Revenues
Taxes 93,385 $ 98,806 107,135 116,783 131,921
Licenses, permits and fees 22,482 23,677 31,421 28,136 12,554 Fines and forfeitures 1,043 1,068 920 697 872
Use of money and property 10,659 14,878 14,932 19,730 17,508 Intergovernmental 7,200 7,840 6,255 6,415 4,590
Charges for services 36,221 33,810 24,323 27,882 27,330 Developer fees and contributions ‐ ‐ ‐ ‐ 57,628 (1) Other 4,415 3,212 5,091 7,681 6,233
Total Revenues 175,405 183,291 190,077 207,324 258,636
Expenditures
Current:
General government 29,653 30,475 31,714 34,269 37,379
Public safety 49,474 50,517 52,457 54,790 56,893
Public works 8,736 9,340 10,098 11,924 12,852
Community development 8,316 14,494 10,275 11,941 13,304 Culture and recreation 21,072 21,904 22,899 23,979 24,707 Capital outlay 15,493 14,148 28,080 17,914 16,495
Debt service:
Principal 5,103 5,296 5,535 7,187 4,782
Interest and fiscal charges 2,872 2,895 2,056 1,936 1,782 Total Expenditures 140,719 149,069 163,114 163,940 168,194 Excess (deficiency) of revenues
over (under) expenditures 34,686 34,222 26,963 43,384 90,442 Other Financing Sources (Uses)
Sale of capital assets ‐ 1,469 1,910 1,950 2,894 Issuance of bond
s ‐ 12,135 ‐ ‐ ‐ Bond premium ‐ ‐ ‐ ‐ ‐ Payment to refund bond escrow agent ‐ (12,035) ‐ ‐ ‐ Lease financing ‐ ‐ ‐ ‐ ‐ Transfers in 32,211 34,028 33,286 42,300 57,452
Transfers (out) (35,017) (38,391) (39,283) (49,958) (65,462) Total other financing sources (uses) (2,806) (2,794) (4,087) (5,708) (5,116) Net Change in fund balances
before extraordinary items 31,880 31,428 22,876 37,676 85,326 Extraordinary Items:
Assets transferred to/liabilities assumed b
y
Successor Agency, net of LAIF rate remeasurement (9,299) ‐ ‐ ‐ ‐ Net Change in fund balances 22,581 $ 31,428 22,876 37,676 85,326 Debt service as a percentage of
noncapital expenditures 6.4% 6.2% 5.6% 6.1% 4.3%
(1) Beginning the fiscal year ended June 30, 2017, the City reclassified Developer fees & contributions from various revenu e line items. The City elected not to reclassify prior years' balances.
Fiscal Year Ended June 30,
(Dollars in Thousands)
Last Ten Fiscal Years
Changes in Fund Balances of Governmental Funds
CITY OF MOUNTAIN VIEW, CALIFORNIA
146
Schedule 4
.
2018 2019 2020 2021 2022
136,206 146,048 149,433 160,404 182,055 17,202 14,688 12,368 12,521 11,867 912 979 768 312 316 20,228 45,389 52,008 22,833 18,359 5,706 7,062 6,397 8,251 22,079 30,077 32,594 30,479 27,642 32,495 60,239 52,291 66,709 45,890 85,585 7,055 17,052 6,903 7,509 15,448 277,625 316,103 325,065 285,362 368,204 43,432 44,284 46,303 49,541 53,605 65,276 65,968 69,665 71,579 75,243 16,229 16,400 16,875 18,548 21,245 18,099 17,988 20,062 16,828 17,981 29,257 28,315 52,912 27,192 30,584 32,688 39,817 24,490 29,699 74,108 3,355 3,453 1,927 1,997 2,135 1,673 2,847 4,533 4,437 4,439 210,009 219,072 236,767 219,821 279,340 67,616 97,031 88,298 65,541 88,864 1,821 ‐ ‐ ‐ ‐ ‐ 63,800 ‐ ‐ ‐ ‐ 6,416 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6,549 96,599 82,995 143,720 58,910 114,413 (99,972) (86,774) (147,212) (62,041) (108,553) (1,552) 66,437 (3,492) (3,131) 12,409 66,064 163,468 84,806 62,410 101,273 ‐ ‐ ‐ ‐ ‐ 66,064 163,468 84,806 62,410 101,273
2.8% 3.5% 3.0% 3.3% 3.0%
Fiscal Year Ended June 30,
147
Schedule 5
Real Property
Fiscal Residential Commercial Industrial
Year Property Property Property Other
2012‐13 9,844,690$ 2,737,949 2,498,708 384,514
2013‐14 10,803,722 3,029,020 2,586,574 358,677
2014‐15 11,604,492 3,392,658 2,671,439 925,685
2015‐16 12,697,503 3,633,892 3,381,658 1,016,306
2016‐17 14,015,191 4,794,158 3,420,298 1,125,702 2017‐18 15,613,793 5,376,731 3,676,616 1,072,122 2018‐19 16,641,242 6,027,299 3,944,104 1,087,814 2019‐20 18,323,758 6,408,156 4,373,020 1,386,810 2020‐21 20,011,424 6,971,532 4,498,546 1,936,547 2021‐22 21,255,921 7,778,649 4,680,879 2,537,478 Source: Santa Clara County Assessor
Note: Actual property value dat a not available in California. (1) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1 percent and a llocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area. The City of Mountain View encompasses more than 15 tax rate areas.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Assessed Value of Taxable Property
Last Ten Fiscal Years
(Dollars in Thousands)
148
Schedule 5
Less: Total Taxable
Tax‐Exempt Assessed Total Direct
Unsecured Property Value Tax Rate (1)
2,400,336 (521,424) 17,344,773 1.00%
2,527,347 (545,680) 18,759,660 1.00%
2,444,399 (1,011, 970) 20,026,703 1.00%
2,689,859 (993,411) 22,425,807 1.00%
2,972,482 (1,094,913) 25,232,918 1.00%
3,437,332 (1,145,258) 28,031,336 1.00%
2,830,453 (1,125,615) 29,405,297 1.00%
2,816,506 (1,400,344) 31,907,906 1.00%
2,969,624 (1,611,881) 34,775,792 1.00%
2,815,937 (1,487,267) 37,581,597 1.00%
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
($ 000)
CITY OF MOUNTAIN VIEW, CALIFORNIA
Total Taxable Assessed Value
149
Schedule 6
City Direct Rates
Fiscal Basic Total County of Special Total Direct
Year Rate (2) Direct Santa Clara School Districts Hospitals Districts and Overlapping 2012‐13 1.00 1.00 0.0439 0.0463 0.1005 0.1149 0.0129 0.0069 1.1513 1.181 2013‐14 1.00 1.00 0.0423 0.0423 0.0941 0.1059 0.0129 0.0070 1.1434 1.1681 2014‐15 1.00 1.00 0.0479 0.0479 0.0747 0.1164 0.0129 0.0065 1.1291 1.1837 2015‐16 1.00 1.00 0.0476 0.0476 0.0632 0.1174 0.0129 0.0065 1.1173 1.1844 2016‐17 1.00 1.00 0.0474 0.0474 0.0772 0.0943 0.0129 0.0092 1.1338 1.1638 2017‐18 1.00 1.00 0.0597 0.0597 0.0737 0.1052 0.0100 0.0071 1.1405 1.1820 2018‐19 1.00 1.00 0.0565 0.0565 0.1015 0.1259 0.0100 0.0060 1.1640 1.1984 2019‐20 1.00 1.00 0.0557 0.0557 0.0962 0.1158 0.0100 0.0057 1.1576 1.1872 2020‐21 1.00 1.00 0.0457 0.0457 0.1110 0.1578 0.0100 0.0052 1.1619 1.2187 2021‐22 1.00 1.00 0.0576 0.0576 0.1015 0.1392 0.0100 0.0066 1.1657 1.2134 Source: County of Santa Clara
(1) Overlapping rates are those of local and county governments that apply to property owners within the City of Mountain View. Not all overlapping rates apply to all Mountain View property owners. These are voter approved levies in addition to the 1 percent State levy. (2) The City's share of the basic state wide property tax rate can only be increased by a 2/3 vote of the City's residents.
Overlapping Rates (1)
CITY OF MOUNTAIN VIEW, CALIFORNIA
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed value)
150
Schedule 7
Fiscal Year 2021‐22 Fiscal Year 2012‐13
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Google LLC $ 5,936,256 1 15.8% $ 1,848,965 1 10.7%
Baccarat Shoreline LLC 453,500 2 1.2% ‐ ‐ ‐ Nor Cal Plymouth Realty LLC 221,145 3 0.6% ‐ ‐ ‐ Sobrato Interests 343,461 4 0.9% ‐ ‐ ‐ P A Charleston Road LLC 117,732 5 0.3% 101,018 6 0.6% Richard T. Peery Trustee 105,110 6 0.3% 132,121 4 0.8% Intuit Inc. 241,788 7 0.7% ‐ ‐ ‐ Microsoft Corporation 89,179 8 0.2% 133,582 3 0.8% MGP IX SAC II Properties LLC 473,830 9 1.3% ‐ ‐ ‐ LinkedIn Corporation 420,423 10 1.1% ‐ ‐ ‐ HCP Life Science REIT Inc. ‐ ‐ ‐ 316,862 2 1.8% Mission West Shoreline LLC ‐ ‐ ‐ 128,424 5 0.7% 400 Castro St. Inc. ‐ ‐ ‐ 55,488 7 0.3% SIC‐Mountain Bay Plaza LLC ‐ ‐ ‐ 51,487 8 0.3% Charleston Properties ‐ ‐ ‐ 55,760 9 0.3% Intuit Inc. ‐ ‐ ‐ 61,688 10 0.3% Subtotal $ 8,402,424 22.4% $ 2,885,395 16.6%
Fiscal Year 2021‐22 Total Net Assessed Valuation: $ 37,581,597 Fiscal Year 2012‐13 Total Net Assessed Valuation: $ 17,344,773 Source: Santa Clara County Assessor Fiscal Year Combined Tax Rolls.
Ranking based on Tax Revenue.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Principal Property Tax Payers
Current Year and Nine Years Ago
(Dollars in Thousands)
151
152
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Schedule 8
CITY OF MOUNTAIN VIEW, CALIFORNIA
Property Tax Levies and Collections
Last Ten Fiscal Years
(Dollars in Thousands)
Percent Delinquent Total
Fiscal Taxes Current of Levy Tax Taxes Percent
Year Levied (1) Collections (2) Collected Collections Collected of Levy 2012‐13 $ 58,515 58,515 100% ‐ 58,515 100% 2013‐14 62,601 62,601 100% ‐ 62,601 100% 2014‐15 64,954 64,954 100% ‐ 64,954 100% 2015‐16 71,563 71,563 100% ‐ 71,563 100% 2016‐17 86,373 86,373 100% ‐ 86,373 100% 2017‐18 92,478 92,478 100% ‐ 92,478 100% 2018‐19 95,420 95,420 100% ‐ 95,420 100% 2019‐20 107,192 107,192 100% ‐ 107,192 100% 2020‐21 119,678 119,678 100% ‐ 119,678 100% 2021‐22 128,860 128,860 100% ‐ 128,860 100% Source: City of Mountain View
(1) Levies include real and personal property. Amount excludes Special Assessments and the penalties and fees on delinquent Special Assessments.
(2) The City selected to participate in the "Teeter" plan offered by the County whereby cities receive 100 percent of the taxes levied in exchange for foregoing any interest and penalties collected on delinquent taxes.
The "Teeter" plan does not apply to Special Assessment Districts. 153
Schedule 9
CITY OF MOUNTAIN VIEW, CALIFORNIA
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(Dollars in Thousands)
Governmental Activities
Tax Certificates Special
Fiscal Allocation of Bank Assessment
Year Bonds Participation Loan Debt
2012‐13 52,300 $ 4,738 ‐ 274 2013‐14 36,085 3,655 12,135 241
2014‐15 34,550 2,530 9,293 208
2015‐16 32,955 ‐ 6,265 174
2016‐17 31,290 ‐ 3,187 134 2017‐18 29,555 ‐ 1,607 95 2018‐19 97,863 (3) ‐ ‐ 49 2019‐20 95,756 ‐ ‐ 12 2020‐21 93,554 ‐ ‐ ‐ 2021‐22 91,252 ‐ ‐ ‐ Sources: City of Mountain View
State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) (1) Includes the City of Palo Alto Loan. See Note 7 for additional information. (2) See Schedule 14 (Demographic Statistics) for personal income and population data. (3) Includes 2018 SRPC Revenue Bonds, Series A and Series B (2018 Bonds). (4) Personal income data for Fiscal Year 2021‐22 is not available until May of 2023. 154
Schedule 9
WasteWater Total Percentage
Water Direct Primary of Personal Per
Bonds (1) Financing Government Income (2) Capita (2)
11,115 ‐ 68,427 1.33% 0.89
10,540 ‐ 62,656 1.16% 0.81
9,955 ‐ 56,536 0.96% 0.72
9,355 ‐ 48,749 0.76% 0.61
8,740 ‐ 43,351 0.59% 0.54
8,110 ‐ 39,367 0.49% 0.49
7,470 59 105,441 1.21% 1.30
6,810 9,521 112,099 1.17% 1.36
6,135 8,979 108,668 1.05% 1.31
5,445 8,419 105,116 (4) 1.25
Business‐Type
Activities
0 20,000
40,000
60,000
80,000
100,000
120,000
2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 ($ 000)
CITY OF MOUNTAIN VIEW, CALIFORNIA
Outstanding Debt by Activity Type
Total Government Total Business
155
Schedule 10
CITY OF MOUNTAIN VIEW, CALIFORNIA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(Dollars in Thousands)
General Bonded Debt Outstanding
Percentage of
Tax Actual Taxable
Fiscal Allocation Value of Per
Year Bonds Total Property Capita (1)
2012‐13 52,300 $ 52,300 0.30% 0.68
2013‐14 36,085 36,085 0.19% 0.47
2014‐15 34,550 34,550 0.17% 0.44
2015‐16 32,955 32,955 0.15% 0.41
2016‐17 31,290 31,290 0.12% 0.39
2017‐18 29,555 29,555 0.11% 0.37
2018‐19 97,863 (2) 97,863 0.33% 1.21
2019‐20 95,756 95,756 0.30% 1.16
2020‐21 93,554 93,554 0.27% 1.13
2021‐22 91,252 91,252 0.24% 1.09
(1) Per capita numbers are restated as updated population numbe rs are available. (2) Includes 2018 SRPC Revenue B onds, Series A and Series B. 156
Schedule 11
157
CITY OF MOUNTAIN VIEW, CALIFORNIA
Direct and Overlapping Governmental Activities Debt
As of June 30, 2022
2021‐22 Assessed Valuation: $37,581,596,576 (A)
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/22 % Applicable (1) D ebt 6/30/22 Santa Clara County $1,130,850,000 6.521% $ 73,742,729 Foothill‐DeAnza Community College District 657,878,325 18.475 1 21,543,021 Fremont Union High School District 582,770,088 0.395 2,301,942 Mountain View‐Los Altos Union High School District 258,658,320 58.082 150,233,925 Los Altos School District 145,755,000 17.357 25,298,695 Mountain View School District 1,695,000 88.045 1,492,363 Sunnyvale School District 236,555,820 0.873 2,065,132 Mountain View‐Whisman School District 271,195,000 92.199 250,03 9,078 Whisman School District 5,835,258 98.514 5,748,546
El Camino Hospital District 111,240,000 32.987 36,694,739 Midpeninsula Regional Open Space District 84,575,000 10.632 8,9 92,014 Shoreline Regional Park Community 85,595,000 100.000 85,595,000 Santa Clara Valley Water District Benefit Assessment District 48,150,000 6.521 3,139,862 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $766,887,046
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Santa Clara County General Fund Obligations $1,210,694,365 6.521% $ 78,949,380 Santa Clara County Pension Obligation Bonds 335,638,470 6.521 2 1,886,985 Santa Clara County Board of Education Certificates of Participation 1,820,000 6.521 118,682 Foothill‐DeAnza Community College District Certificates of Participation 21,380,000 18.475 3,949,955 Mountain View‐Los Altos Union High School District General Fund Obligations 2,154,552 58.082 1,251,407 Los Altos School District Certificates of Participation 1,711,634 17.357 297,088 City of Mountain View 0 100.000 0
Midpeninsula Regional Park District General Fund Obligations 99,705,600 10.632 10,600,699 Santa Clara County Vector Control District Certificates of Participation 1,505,000 6.521 98,141 TOTAL OVERLAPPING GENERAL FUND DEBT $117,152,337
Less: Santa Clara County supported obligations 1,178 ,916 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $115,973 ,421
TOTAL DIRECT DEBT $91,251,629 (3)
TOTAL GROSS OVERLAPPING DEBT $884,039,383
TOTAL NET OVERLAPPING DEBT $882,860,467
GROSS COMBINED TOTAL DEBT $889,696,012(2) (3)
NET COMBINED TOTAL DEBT $888,517,096(2) (3)
(1) The percentage of overlapping debt applicable to the city i s estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non‐bonded capital lease obligations.
(3) Includes unamortized premi um for direct debt $5,656,629.
Ratios to 2021‐22 Assessed Valuation:
Total Overlapping Tax and Assessment Debt ..................................... 2.04% Total Direct Debt ......................................................................... 0.24% Gross Combined Total Debt .............................................................. 2.37% Net Combined Total Debt ................................................................. 2.36%
Source: California Municipal Statistics, Inc.
(A) The assessed valuation number provided by Santa Clara County Assessor.
Schedule 12
2012‐13 2013‐14 2014‐15 2015‐16
Debt limit $ 2,601,716 2,813,949 3,004,005 3,363,871
Total net debt applicable to limit ‐ ‐ ‐ ‐ Legal debt margin $ 2,601,716 2,813,949 3,004,005 3,363,871 Total net debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
(1) Source: Santa Clara County Assessor.
(2) The legal debt margin for the City of Mountain View, California, is calculated using a debt limit of 15 percent of the assessed value of property within the city limits.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollars in Thousands)
Fiscal Year
158
Schedule 12
Legal Debt Margin Calculation for Fiscal Year 2021‐22
Assessed value (net) ‐ June 30, 2022 (1) $ 37,581,597
Debt limit: 15% of assessed value 5,637,240
Less total bonded debt, general obligation ‐
Legal debt margin (2) $ 5,637,240
2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22
3,784,938 4,204,700 4,410,795 4,786,186 5,216,369 5,637,240 ‐ ‐ ‐ ‐ ‐ ‐ 3,784,938 4,204,700 4,410,795 4,786,186 5,216,369 5,637,240
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year
159
Schedule 13
Less: Net
Fiscal Gross Operating Available
Year Revenues Costs Revenues Principal Interest Coverage 2012‐13 29,060$ 22,322 6,738 310 316 10.8
2013‐14 29,183 21,505 7,678 325 304 12.2
2014‐15 27,504 21,671 5,833 335 291 9.3
2015‐16 28,479 23,472 5,007 350 277 8.0
2016‐17 36,005 25,894 10,111 365 263 16.1
2017‐18 48,005 30,746 17,259 380 248 27.5
2018‐19 37,520 31,425 6,095 390 234 9.8
2019‐20 42,135 32,544 9,591 410 219 15.2
2020‐21 40,978 31,733 9,245 425 202 14.7
2021‐22 41,390 27,507 13,883 440 185 22.2
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Gross revenues include developer capital contribution fees, non‐operating interest earnings and transfers in.
Operating costs exclude depreciation or amortization. Interest also includes fiscal charges and other related costs.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Debt Pledged‐Revenue Coverage
Last Ten Fiscal Years
(Dollars in Thousands)
Water Revenue Bonds
Debt Service
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
($ 000)
Water Revenue Bonds
Net Revenue
Debt Service
160
Schedule 13
CITY OF MOUNTAIN VIEW, CALIFORNIA
Debt Pledged‐Revenue Coverage
Last Ten Fiscal Years
(Dollars in Thousands)
Special
Fiscal Assessment
Year Collections (1) Principal Interest Coverage
2012‐13 50 $ 32 19 1.0
2013‐14 52 33 17 1.0
2014‐15 46 33 15 1.0
2015‐16 50 34 12 1.1
2016‐17 48 39 11 1.0
2017‐18 51 40 8 1.1
2018‐19 40 46 5 0.8
2019‐20 13 37 2 0.3
2020‐21 ‐ 12 2 0.0
2021‐22 ‐ ‐ ‐ 0.0 Note: Current fiscal year debt service is paid from prior year collections. (1) Collections include interest payments from property owners.
Special Assessment Bonds
Debt Service
$0
$10
$20
$30
$40
$50
$60
($ 000)
Special Assessment Bonds
Revenue
Debt Service
161
Schedule 13
Tax
Fiscal Increment
Year Revenues Principal Interest (2) Coverage
2012‐13 29,825$ 4,030 2,680 4.4
2013‐14 30,972 4,180 2,746 4.5
2014‐15 28,821 4,377 1,953 4.6
2015‐16 31,304 4,623 1,884 4.8
2016‐17 41,635 4,743 1,771 6.4
2017‐18 42,100 3,315 1,665 8.5
2018‐19 40,219 3,407 1,917 7.6
2019‐20 46,565 1,890 4,531 7.3
2020‐21 51,943 1,985 4,435 8.1
2021‐22 55,486 2,085 4,333 8.6
(1) Comprised of Shoreline Regional Park Community 2011 Revenue Bonds, 2014 Bank Loan, and 2018 Revenue Bonds.
(2) Includes other fiscal charges.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Debt Pledged‐Revenue Coverage
Last Ten Fiscal Years
(Dollars in Thousands)
Revenue Bonds‐Shoreline Regional Park Community (1)
Debt Service
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
($ 000)
Revenue Bonds ‐ Shoreline Regional Park Community
Revenue Debt Service
162
Schedule 13
Less: Net
Fiscal Gross Operating Available
Year Revenues Costs Revenues Principal Interest Coverage 2018‐19 25,394$ 17,434 7,960 ‐ 1 7,960.0 2019‐20 29,452 17,847 11,605 579 35 18.9
2020‐21 26,380 19,300 7,080 542 311 8.3
2021‐22 29,147 19,073 10,074 560 293 11.8
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Gross revenues include developer capital contribution fees, non‐operating interest earnings and transfers in.
Operating costs exclude depreciation or amortization. Interest also includes fiscal charges and other related costs.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Debt Pledged‐Revenue Coverage
Last Ten Fiscal Years
(Dollars in Thousands)
Wastewater Direct Financing Arrangement
Debt Service
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
($ 000)
Wastewater Direct Financing Arrangement
Net Revenue
Debt Service
163
Schedule 14
CITY OF MOUNTAIN VIEW, CALIFORNIA
Demographic Statistics
Last Ten Fiscal Years
(Dollars in Thousands)
Population Per Capita
Fiscal Density Personal Personal School Unemployment
Year Population (1) (Sq. Mile) (2) Income (3) Income (3) Enrollment Rate (%) (3) 2012‐13 76,739 6,290 $5,141,513 $67 7,524 6.8%
2013‐14 77,052 6,316 5,393,640 70 7,535 5.4%
2014‐15 78,564 6,440 5,892,300 75 7,552 3.9%
2015‐16 79,429 6,511 6,433,749 81 7,577 4.0%
2016‐17 79,966 6,555 7,356,872 92 7,620 3.5%
2017‐18 80,104 6,566 8,010,400 100 7,678 2.9%
2018‐19 80,986 6,638 8,746,488 108 7,719 2.6%
2019‐20 82,376 6,752 9,555,616 116 7,511 9.3%
2020‐21 83,128 6,814 10,307,872 124 7,427 4.8%
2021‐22 83,864 6,874 (4) (4) 7,294 2.3%
Sources: Santa Clara County Office of Education.
State of California, Department of Finance.
U.S. Census Bureau.
(1) Population numbers are provisional estimates as of January 1st, revised annually. (2) Population Density per square mile calculations are restated from 11.7 to 12.2 square miles in Fiscal Year 2015‐16. All prior years' numbers are restat ed. (3) Per capita personal income and unemployment rate are for Santa Clara County.
Personal income is the product of the countywide per capi ta amount and the City's population. (4) Personal income data for Fiscal Year 2021‐22 is not available until May of 2023. 164
Schedule 15
Fiscal Year 2021‐22 Fiscal Year 2012‐13
Estimated Percentage Estimated Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Google LLC 26,900 1 20.8% 11,332 1 9.7% El Camino Hospital 2,900 2 2.2% 2,630 4 2.2% Microsoft Corporation 2,600 3 2.0% 1,700 6 1.4% Intuit Inc. 2,600 3 2.0% 1,707 5 1.5% Waymo LLC 1,800 5 1.4% ‐ ‐ ‐ Pure Storage 1,400 6 1.1% ‐ ‐ ‐ Synopsys Inc. 1,000 7 0.8% 1,031 8 0.9% Nuro, Inc. 700 8 0.5% ‐ ‐ ‐ City of Mountain View 700 8 0.5% ‐ ‐ ‐ Samsung Info Systems America 500 10 0.4% ‐ ‐ ‐ Symantec/Verisign ‐ ‐ ‐ 3,444 2 2.9% LinkedIn ‐ ‐ ‐ 3,000 3 2.6% Palo Alto Medical Foundation ‐ ‐ ‐ 1,034 7 0.9% Omnicell ‐ ‐ ‐ 500 9 0.4% Alcatel‐Lucent ‐ ‐ ‐ 419 10 0.4% Subtotal 41,100 31.7% 26,797 22.9%
Total City Daytime Population 129,500 117,000
Sources: City of Mountain View Business License Data
Silicon Valley Business Journal
Company Representatives
CITY OF MOUNTAIN VIEW, CALIFORNIA
Principal Employers
Current Year and Nine Years Ago
165
Schedule 16
CITY OF MOUNTAIN VIEW, CALIFORNIA
Full‐Time Equivalent City Government Employees by Function Last Ten Fiscal Years
Adopted for Fiscal Year Ended June 30,
2013 2014 2015 2016
Function
General government 73.75 74.75 74.75 75.40
Public safety:
Fire:
Firefighters and Safety Officers 74.00 74.00 74.00 74.00 Civilians 5.60 5.60 5.60 5.60
Police:
Sworn Police 96.00 96.00 96.00 96.00
Civilians 44.00 44.00 44.00 44.00
Public works 53.05 54.05 54.55 56.20
Community development 32.00 34.00 34.00 38.75
Culture and recreation:
Community Services 81.75 81.75 82.75 83.75
Library 30.00 30.00 30.00 30.00
Water 38.15 37.65 37.50 38.25
Wastewater 21.50 21.50 21.45 21.60
Solid Waste 14.95 14.95 14.65 14.70
Total Regular Positions 564.75 568.25 569.25 578.25
Limited‐Period Positions 3.50 6.25 10.00 12.25
Total 568.25 574.50 579.25 590.50
Source: City of Mountain View
166
Schedule 16
.
Adopted for Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
78.65 80.65 83.65 91.65 95.15 99.15
74.00 73.00 73.00 71.00 71.00 71.00
4.60 5.60 7.60 8.60 8.60 8.60
95.00 95.00 95.00 96.00 96.00 95.00
45.50 46.00 46.00 47.50 47.50 47.50
57.70 62.40 63.90 66.90 68.90 69.90
41.75 49.00 51.00 52.00 54.00 55.00
84.25 84.50 88.50 90.50 90.50 90.50
29.75 29.75 30.75 30.75 30.75 30.75
38.25 38.35 37.35 37.35 37.85 37.85
21.60 21.70 21.70 22.70 22.70 22.70
14.70 14.80 14.80 14.80 14.80 14.80
585.75 600.75 613.25 629.75 637.75 642.75
17.50 19.00 22.50 20.00 23.50 19.50
603.25 619.75 635.75 649.75 661.25 662.25
0 100
200
300
400
500
600
700
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
FTE's
CITY OF MOUNTAIN VIEW, CALIFORNIA
Employees by Function
General government Public safety Public works
Community development Culture and recreation Water
Wastewater Solid Waste Limited‐Period
167
Schedule 17
Function/Program 2013 2014 2015 2016
Public safety:
Fire:
Fire calls for service 5,196 5,526 5,703 5,955
Primary fire inspections conducted 999 957 (1) 1,857 (2) 2,844 (3) Environmental safety inspections conducted 1,593 1,851 1,769 1,641 Police:
Communication Center calls answere
d 79,662 85,175 90,559 91,826
Police calls for service 72,318 61,525 63,093 48,875 (4) Law violations:
Part I and Part II crime
s 4,465 4,384 4,369 4,901
Physical arrests (adult and juvenile) 2,706 2,320 2,262 1,978 Traffic violations 18,908 13,411 13,745 11,821
Parking violations 4,120 8,235 5,990 6,733
Public works
Street resurfacing (miles) 1.20 1.49 ‐ (5) 2.40
Potholes repaired (square feet) 1,102 821 1,439 1,800
Culture and recreation:
Community Services:
Recreation class participant
s 7,020 8,558 9,438 8,697
Performing Arts Center performances 340 399 394 399
Library:
Volumes in Collection (thousands
) 331 337 337 326
Total Volumes Borrowed (thousands) 1,747 1,685 1,564 1,416 Water
Water service connections 17,636 17,781 17,858 17,516
Water main breaks 6895
Average daily consumption (thousands of gallons) 10,520 10,475 8,713 6,917 Wastewater
Storm drain inlets 2,776 2,776 2,829 3,030
Sewer service connections 17,373 17,377 17,461 16,906 (6) Sewer main blockages 6 5 15 4
Average daily treatment (thousands of gallons) 7,608 6,980 6,750 6,235 Solid Waste
Landfilled (tons per year) 46,894 44,878 46,865 (8) 40,961 Recyclables Processed (tons per year) 28,136 30,411 35,465 40,499 Source: City of Mountain View
(1) Lower due to vacancy and turnover in personnel, resulting in reduced staffing. (2) Beginning in the Fiscal Year ended June 30, 2015, included total fire inspections completed by Fire Suppression Line Personnel (918). Previously included only those completed by the Fire & Environmental Protection Division (FEPD). (3) Beginning in the Fiscal Year ended June 30, 2016, includes total multi‐family housing inspections completed by FEPD not previously accounted for.
(4) For the Fiscal Year ended June 30, 2016, Police calls for service number is restated. Number of calls have decreased due to the different way the new CAD system records some activities. (5) The City was unable to advertise and bid the surface project and therefore street resurfacing project was delayed. (6) Methodology to estimate number of sewer connections changed to reflect more accurate count. (7) Fiscal Year ended June 30, 2018 was restated due to incorrect figures reflected for the year. (8) Fiscal Year ended June 30, 2015 was restated in Fiscal Year ended June 30, 2016 due to incorrect calculations. (9) Includes curbside, multi‐family, commercial and school recycling, yard waste, debris box recycling, MV Recycling Center, and recyclables recovered from refuse at the SMaRT station. (10)
Variance, unless otherwise noted, due to the COVID‐19 public health crisis and Shelter‐in‐Place restrictions.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Operating Indicators by Function/Program
Last Ten Fiscal Years
Fiscal Year Ended June 30,
168
Schedule 17
2017 2018 2019 2020 (10) 2021 (10) 2022
6,117 6,049 6,188 6,120 5,604 6,741
1,972 (1) 1,520 (1) 2,262 2,498 1,401 1,321
1,572 1,613 1,363 1,718 1,605 1,841
91,782 92,011 83,400 73,201 93,101 107,424
48,515 44,188 44,725 40,254 34,953 39,194
4,689 4,914 5,335 4,873 4,241 4,488
2,218 2,119 1,970 1,732 1,147 841
8,233 3,563 4,270 3,073 1,307 1,131
8,149 12,506 12,144 6,761 559 2,019
6.80 2.97 3.93 9.62 2.25 ‐
(5)
3,271 1,071 3,724 2,025 780 684
8,412 8,501 9,023 2,606 2,356 8,709
437 555 504 276 274 396
329 302 308 305 283 273
1,339 1,177 1,253 961 742 1,232
18,004 18,199 18,341 18,572 18,747 18,838
10 2 8 7 15 8
7,807 8,395 8,341 8,823 8,950 8,265
3,086 3,086 3,086 3,086 3,242 3,242
16,906 16,863 (7) 16,990 17,373 17,373 17,373
366 6 98
6,285 7,005 7,295 7,598 6,400 6,130
40,092 41,320 47,578 (9) 42,667 35,067 31,506
41,649 41,381 42,248 36,751 35,961 34,484
Fiscal Year Ended June 30,
169
Schedule 18
2013 2014 2015 2016
Function/Program
Public safety:
Fire stations 5555
Police stations 1111
Police patrol units 38 38 38 38
Public works
Miles of streets 140.2 140.2 140.2 140.2
Street lights 4,117 4,117 4,117 4,120
Traffic Signals 83 83 83 83
Culture and recreation:
Community services:
City parks (2) 37 39 41 42
City parks acreage (2) 195.7 196.35 199.12 212.32
(3)
Playgrounds (2) 30 30 30 30
City trails (2) 5555
City trails miles (2) 9.35 9.26 (4) 9.26 9.26
Roadway landscaping acreage 120.25 120.25 120.25 120.25 Regional park acreage (including trails) (2) 796.63 796.13 (6) 796.13 784.13 (3) Regional park facilities:
Golf courses (18 holes
) 1111
Boathouse 1111
Sailing lake acreage 50 50 50 50
Clubhouse and banquet facility 1111
Historic Buildings 1111
Community gardens 2222
Community centers 1111
Senior centers 1111
Teen Center 0000
Sports centers 2222
Performing arts centers 1111
Swimming pools 2222
Tennis courts 35 35 35 35
Baseball/softball diamonds 6668
Soccer/football fields 14 14 14 16
Library:
City Libraries 1111
Water
Miles of water mains 176 176 176 176
Fire hydrants 2,072 2,074 2,091 2,118
Storage capacity (thousands of gallons) 38,530 38,530 38,530 38,530 Wastewater
Miles of sanitary sewers 158 158 158 158
Miles of storm sewers 108 109 109 109
Number of treatment plants (10) 0000
Treatment capacity (thousands of gallons) 15,100 15,100 15,100 15,100 Source: City of Mountain View
(1) The miles of streets are based on the certified report dated May 22, 2019 derived from the updated database. (2) Includes assets not owned by the City but maintained by the City. (3) Shoreline Athletic Fields converted 12 acres of Regional park acreage to City parks acreage in Fiscal Year ended June 30, 2016.
(4) The total length of the trails adjusted due to more precise Geographic Information Systems measurement. (5)
Additions of Permanente Creek Trail Rock St to Middlefield Rd and Hetch‐Hetchy Trail between N Whisman Rd and Tyrella Ave.
(6) No longer includes the Dog Park and Charleston Park. (7)
Separate category to reflect Adobe Building and Immigrant House beginning Fiscal Year ended June 30, 2017 (8) Reflects Teen Center as a separate category beginning Fiscal Year ended June 30, 2017 (9) The miles of sanitary sewers are updated based on correction by GIS due to mischaracterization (10) The City of Mountain View owns treatment capacity at the Palo Alto Treatment Plant.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year Ended June 30,
170
Schedule 18
.
2017 2018 2019 2020 2021 2022
555 555
111 111
38 38 38 38 38 38
140.2 140.2 140.1 (1) 140.1 140.1 140.1
4,120 4,120 4,270 4,270 4,270 4,270
83 85 85 86 87 88
42 42 42 42 42 44
212.32 212.32 212.32 212.32 212.59 215.80
30 30 30 30 33 35
555 555
9.26 9.71 (5) 9.71 9.71 9.71 9.71
120.25 120.25 120.25 120.25 120.25 120.25
784.13 784.13 784.13 784.13 784.13 784.13
111 111
111 111
50 50 50 50 50 50
111 111
3 (7) 33 333
223 333
111 111
111 111
1 (8) 11 111
222 222
111 111
222 222
35 35 35 35 35 35
888 888
16 16 16 16 16 16
111 111
177 188 188 188 188 188
2,118 2,136 2,136 2,136 2,117 2,117
38,530 38,530 38,530 38,530 38,530 38,530
158 158 157
(9) 157 157 157
109 109 109 109 114 114
000 000
15,100 15,100 15,100 15,100 15,100 15,100
Fiscal Year Ended June 30,
171
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MOUNTAIN VIEW
SHORELINE REGIONAL PARK COMMUNITY
(A Component Unit of the City of Mountain View, California)
Basic Financial Statements
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Prepared by the
DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES
Jesse Takahashi, Finance and Administrative Services Director Helen He, Accounting Manager
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MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
For the Fiscal Year Ended June 30, 2022
175
Table of Contents
Page
Independent Auditor’s Report ....................................................................................................................... 177
Management’s Discussion and Analysis (Required Supplementary Information ‐ Unaudited) ................ 181
Basic Financial Statements:
Government‐wide Financial Statements:
Statement of Net Position .................................................................................................................. 191 Statement of Activities ....................................................................................................................... 192
Fund Financial Statements:
Governmental Funds:
Balance Sheet ..................................................................................................................................... 193 Reconciliation of the Balance Sheet of Governmental Funds to the Government‐wide Statement of Net Position ‐ Governmental Activities ................................................................. 194 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................ 195 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government‐wide Statement of Activities ‐ Governmental Activities .............................................................................................................. 196 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Shoreline Regional Park Community Fund .................................................................... 197
Notes to Basic Financial Statements .................................................................................................. 199
Required Supplementary Information – Unaudited:
Schedule of the Shoreline Community’s Proportionate Share of the Net Pension Liability ................................................................................................................ 225 Schedule of the Shoreline Community Pension Contributions ............................................................... 226 Schedule of the Shoreline Community’s Proportionate Share of the Net OPEB Liability .................................................................................................................... 227 Schedule of the Shoreline Community OPEB Contributions ................................................................... 228
Other Supplementary Information:
Shoreline Regional Park Community Fund:
Combining Balance Sheet ................................................................................................................... 230 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................... 231
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........................................................ 233
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www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
177
Independent Auditor’s Report
Board of Directors of the
Mountain View Shoreline Regional Park Community
City of Mountain View, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental ac tivities and each major fund of the Mountain View Shoreline Regional Park Community (Shoreline Community), a component unit of the City of Mountain View, California (City), as of and for the year end ed June 30, 2022, and the related notes to the financial statements, which collectively comprise the Shoreline Community’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Shoreline Community as of June 30, 2022, and the respective changes in financial position thereof and the respective budgetary comparison for the Shoreline Regional Park Community Fund 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 ge nerally 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 r esponsibilities 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 Shoreline Community and to meet our other ethical responsibilities, in accord ance with the relevant ethic al requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for t he preparation and fair presenta tion of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required t o evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Shoreline Community’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.
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatem ent when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from erro r, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of i nternal control. Misstatements are considered material if there is a substantial likelihood that, individuall y or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• exercise professional judgment and maintain professional skep ticism 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 a udit in order to design audit procedures that are appropriate in the circumstances, but not for the purp ose of expressing an opinion on the effectiveness of the Shoreline Co mmunity’s internal control. Ac cordingly, 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 th e overall presentation of the financial statements.
• conclude whether, in our judgment, there are conditions or ev ents, considered in the aggregate, that raise substantial doubt about the Shoreline Community’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governan ce regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States o f America require that the management’s discussion and analysis, the schedule of the Shoreline Communit y’s proportionate share of the net pension liability, the schedule of the Shoreline Community pension contributions, the schedule of the Shoreline Community’s proportionate share of the net OPEB liability, and the schedule of the Shoreline Community OPEB contributions as listed in the table of contents, be prese nted to supplement the basic financial statements. Such information is the responsibility of managemen t and, although not a part of the basic financial statements, is requi red by the Government Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic fin ancial statements in an appropriate operational, economic, or historical context. We have applied certain limite d procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of prepa ring the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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Supplemental Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Shoreline Community’s basic financial statements. The Shoreline Regional Park Community Fund combining fund financial statements are presented for purposes of additional anal ysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedure s, including comparing and reconciling such information directly to the unde rlying accounting and other rec ords 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 Shoreline Regional Park Community Fund combining fund financial statements are fai rly 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 November 18, 2022, on our consid eration of the Shoreline Community’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is sol ely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Shoreline Community’s inter nal control over financial reporting or on compliance. That report is an integral part of an audit perform ed in accordance with Government Auditing Standards in considering the Shoreline Community’s internal control over financial reporting and compliance.
Walnut Creek, California
November 18, 2022
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Mountain View Shoreline Regional Park Community
Management’s Discussion and Analysis (MD&A) (Unaudited) for the Fiscal Year Ended June 30, 2022
This section of the Mountain View Shoreline Regional Park Community ’s (Shoreline Community or SRPC) basic financial statements presents a narrative overview and analysis of the financial activities of the Shoreline Community for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in con junction with additional information that has been furnished in the financial statements and our transmittal letter for the financial statements of the City of Mountain View (City).
FINANCIAL HIGHLIGHTS
The Shoreline Community ’s principal revenue source is property taxes , which have historically fluctuated due to economic conditions that have resulted in changes in the commercial vacancy rate and assessed value s. For Fiscal Year 2021-22, property taxes increased by 6.8%. Fiscal Year 2021-22 financial highlights include the following:
• The Shoreline Community ’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources for the fiscal year ended June 30, 2022, by $82.8 million (net position). Of this amount, $12.1 million reflects its net investment in capital assets, $61.3 million is restricted for Shoreline Community indebtedness , and $9.4 million is unrestricted.
• The Shoreline Community ’s total net position increased by $54.5 million during the fiscal year compared to the prior fiscal year increase of $19.6 million. The significant change is primarily due to increases in property taxes, capital grants and contributions, and capital contributions from the City.
• Revenues of $103.4 million, including program revenues and general revenues, excluding net transfers, are $44.6 million more than the prior fiscal year. The change is primarily due to increases in property taxes, capital grants and contributions, and capital contributions from the City during the fiscal year.
• Shoreline Community expenses are $34.5 million, an increase of $0.6 million over the prior fiscal year.
• Governmental fund balances for the fiscal year ended June 30, 2022 increased $22.0 million to $82.6 million, primarily due to higher revenue resulting from higher property taxes and the one -time developer fee s of $14.4 million collected for the Google Landings Office Development Project.
182
• Governmental fund revenues are $69.1 million for the fiscal year ended June 30, 2022, an increase of $16.2 million from the prior fiscal year, primarily from the reasons stated above. • Governmental fund expenditures are $33.2 million for the fiscal year ended June 30, 2022, an increase of $1.8 million from the prior fiscal year’s expenditures of $31.4 million. • The Shoreline Community’s total noncurrent liabilities decreased by $2.3 million compared with the prior fiscal year, primarily due to the annual principal payment of bonds.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Shoreline Community’s component unit basic financial statements. The Shoreline Community ’s component unit basic financial statements comprise three components: (1) government-wide fin
ancial statements; (2) fund financial statements; and (3) notes to the basic financial statements. This report also contains required and other supplementary information.
Gove
rnment-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the Shoreline Community’s finances in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the Shoreline Community ’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Shoreline Community is improving or deteriorating.
The Statement of Activities presents information showing how the Shoreline Community’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.
Fund Financial Statements
The fund financial statements are designed to report information about groupings of related accounts, which are u
sed to maintain control over resources that have been segregated for specific activities or objectives. The Shoreline Community, like other State and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds are u sed to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the 183
government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in determining what financial resources are available in the near future to finance the Shoreline Community ’s programs.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Shoreline Community has three individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the SRPC Fund, SRPC 2011 Revenue Bonds Fund, and SRPC 2018 Revenue Bonds Fund, all of which are reported as major funds.
The Shoreline Community adopts an annual appropriated budget for the SRPC Fund. A budgetary comparison statement has been provided for this fund to demonstrate compliance with budget.
Notes to Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Other
Required Supplementary Information includes schedules required to be presented showing information related to the SRPC’s cost-sharing arrangement with the City’s pension and other postemployment benefits (OPEB) plans.
Other Supplementary Information includes the Combining Statements of the SRPC Fund.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The Shoreline Community has presented its financial statements under the reporting model required accounting principles generally accepted in the United States of America. Two years of financial information and a comparative analysis of government-wide data are included in this MD&A.
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Analysis of Net Position
A summary of the Shoreline Community’s net position is as follows:
2022 2021
Assets:
Current and other assets $ 87,730 65,187
Capital assets 96,851 67,321
Total assets 184,581 132,508
Deferred outflows of resources:
Pension items 869 1,002
OPEB items 127 112
Total deferred outflows of resources 996 1,114 Liabilities:
Current and other liabilities 6,950 6,408
Noncurrent liabilities 91,252 93,554
Net pension liability 2,788 5,268
Net OPEB liability 127 112
Total liabilities 101,117 105,342
Deferred inflows of resources:
Pension items 1,692 -
Net Position :
Net investment in capital assets 12,099 (17,469)
Restricted for Shoreline Community indebtedness 61,254 48,881 Unrestricted 9,415 (3,132)
Total net position $ 82,768 28,280
Condensed Statement of Net Position
(Dollars in Thousands)
185
As noted earlier, net position may serve as a useful indicator of a government’s financial position.
For the Shoreline Community, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $ 82.8 million at the end of the fiscal year. The components of net position are as follows:
• Net investment in capital assets was $12.1 million, which was an increase of $29.6 million compared to the prior fiscal year. This increase was mainly due to increased capital assets and decreased debt outstanding during the current fiscal year. • Another significant component of the Shoreline Community’s net position is $61.3 million in R estricted for Shoreline Community Indebtedness, which may be used to meet the Shoreline Community ’s current and future obligations. The balance increased by $12.4 million from the prior fiscal year.
The Shoreline Community’s current and other assets increased $ 22.5 million while net position increased $54.5 million compared to the prior fiscal year , primarily due to revenues exceeding expenses by $68.9 million and net transfers out to the City of $14.0 million. 186
Statement of Activities
A summary of the Shoreline Community’s changes in net position is as follows:
2022 2021
Revenues:
Program revenues $ 14,855 326
General revenues:
Taxes 55,486 51,943
Capital contributions 34,262 5,904
Investment income (1,197) 663
Total revenues 103,406 58,836
Expenses:
General government 21,335 19,893
Public safety 130 201
Public works 1,926 2,044
Community development 311 327
Culture and recreation 6,744 7,260
Interest on long-term debt 4,073 4,175
Total expenses 34,519 33,900
Increase in net position before transfers 68,887 24,936 Transfers (net) (14,001) (5,250)
Transfer of capital assets
to the City of Mountain View (398) (49)
Change in net position 54,488 19,637
Beginning net position 28,280 8,643
Ending net position $ 82,768 28,280
Condensed Statement of Activities
(Dollars in Thousands)
187
The major component of the Shoreline Community’s current fiscal year revenues is $55.5 million of property taxes. This is an increase of $3.5 million when compared to the prior fiscal year due to changes in the commercial vacancy rate and assessed values . Program revenues we re $14.9 million, an increase of $14.5 million from the prior fiscal year . This increase was due primarily to one-time developer fees and contributions of $14.4 million received during the fiscal year for the Google Landings Office Development Project . Capital contributions increased by $28.4 million when compared to the prior fiscal year due to property acquisition for the Plymouth Street Realignment capital project. Investment earnings were negative $1.2 million, a decrease of $1.9 million compared to the prior fiscal year, due to a reduction in fair value of the investment portfolio.
Expenses totaling $34.5 million increased $619,000 when compared to the prior fiscal year. This was attributable p
rimarily to increases in general government, offset by decreases in all other governmental operations.
The change in net position is an increase of $54.5 million compared to the prior fiscal year increase of $19.6 million. The difference is due to the items mentioned above, notably the increase in property taxes, capital grants and contributions, and capital contributions from the City occurring in the current fiscal year.
FINANCIAL ANALYSIS OF THE SHORELINE COMMUNITY’S FUNDS
As noted earlier, the Shoreline Communit y uses fund accounting t o ensure and demonstrate compliance with finance-related legal requirements.
The focus of the Shoreline Community ’s governmental funds is to provide information on near- term inflows, outflows, and balances of resources that are available for spending. Such information is useful in assessing the Shoreline Community’s financing requirements.
As of June 30, 2022, the Shoreline Community ’s funds reported combined fund balances of $82.6 million, an increase of $22.0 million from the prior fiscal year . The Committed Fund Balance increased by $11.8 million while the Restricted Fund Balance increased by $10.1 million when compared to the prior fiscal year. The increase in the Restricted Fund Balance is mainly due to higher property tax revenues and developer fees which exceed expenditures as previously noted.
Revenues for the fiscal year ended June 30, 202 2 totaled $69.1 million, an increase of $
16.2 million, or 30.6%, when compared to the prior fiscal year. The increase is primarily due to increases in property taxes and one-time developer fees and contributions during the fiscal year.
Expenditures totaling $33.2 million were $1.8 million higher compared to the prior fiscal year.
The SRPC Fund receives t ax revenues on property within the Shoreline Community. The fund accounts for the revenues and expenditures of the Shoreline Community. At the end of the fiscal year, its fund balance was $7 6.1 million. As a measure of the SRPC Fund’s liquidity, it may be 188
useful to compare the total fund balance to total fund expenditures. The total fund balance represents 284.2% of the total fund expenditures of $26.8 million.
The fund balance of the SRPC Fund increased by $22.0 million during the current fiscal year. Key factors contributing to this increase are as follows:
• Total revenues are $69.1 million in the current fiscal year, an increase of $16.2 million from the prior fiscal year. The increase is primarily due to increases in property tax es and developer fees and contributions , offset by decreases in use of money and property revenues.
• Expenditures of $26.8 million are comparable to the prior fiscal year. • Net transfers out to the City were $14.0 million for the fiscal year ended June 30, 2022 compared to net transfers out of $ 5.3 million in the prior fiscal year. The increase was primarily related to increased transfers to the City for capital projects.
The SRPC 2011 Revenue Bond s Fund accounts for resources used for the purpose of paying the principal, interest, and related costs on the SRPC 2011 Revenue Bonds as they become due.
Debt service expenditures included $ 2.1 million in principal retirement and $ 1.3 million in interest and fiscal charges for the fiscal year ended June 30, 2022, comparable to the prior fiscal year.
The SRPC 2018 Revenue Bonds Fund accounts for the resources used for the purpose of paying the principal, interest, and related costs on the SRPC 2018 Revenue Bonds as they become due.
Debt service expenditures included $ 3.1 million in interest and fiscal charges for the fiscal year ended June 30, 2022, comparable to the prior fiscal year. 189
CAPITAL ASSETS
A summary of Shoreline Community’s capital assets is as follows:
2022 2021
Land 44,331$ 15,860
Construction in progress 17,869 13,647
Buildings 23,908 23,908
Improvements other than buildings 104,126 102,924 Machinery and equipment 2,271 2,240
Traffic signals 1,500 1,546
Streetlights 1,009 1,029
Less accumulated depreciation (98,163) (93,833) Total 96,851$ 67,321
Capital Assets
(Dollars in Thousands)
For the fiscal year ended June 30, 2022, capital assets, net of accumulated depreciation, totaled $96.9 million, an increase of $29.5 million compared to prior fiscal year. This increase is primarily due to land acquisition for
street realignment projects. The Shoreline Community transferred capital assets of $398,000 to the City. At June 30, 2022, construction commitments were $17.9 million. Additional information about the Shoreline Community’s capital assets is discussed in Note 6 to the Basic Financial Statements.
DEBT ADMINISTRATION
As of June 30, 2022, the Shoreline Community has $91.3 million of outstanding noncurrent liabilities. During the fiscal year, the Shoreline Community’s total long -term debt decreased by $2.3 million compared with the prior fiscal year, primarily due to the scheduled principal retirement of $2.1 million. Standard & Poor’s raised the Shoreline Community’s underlying credit rating from “A” to “A+” in November 2018. The Shoreline Community’s noncurrent liabilities are discussed in Note 7 to the Basic Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
Property taxes for the Shoreline Community are expected to increase for the upcoming fiscal year, compared to the July 1, 2021 tax roll, due to the 2.0 CCPI applied to secured property and expected new development added to the tax roll. Property values are rising due to the high development demand in the community, but there are also pending appeals filed by owners of property in the Shoreline Community that could impact future property tax revenues if successful.
190
REQUESTS FOR INFORMATION
These financial statements are intended to provide citizens, taxpayers, investors, and creditors with a general overview of the Shoreline Community’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be directed to the Finance and Administrative Services Department, 500 Castro Street, P.O. Box 7540, Mountain View, California, 94039-7540, or [email protected].
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Statement of Net Position ‐ Governmental Activities
June 30, 2022
(Dollars in Thousands)
Assets:
Cash and investments 80,585 $
Restricted cash and investments 6,500
Receivables:
Accounts 57
Interest 588
Capital assets:
Nondepreciable 62,200
Depreciable, net of accumulated depreciation 34,651
Total assets 184,581
Deferred outflows of resources:
Pension items 869
OPEB items 127
Total deferred outflows of resources 996
Liabilities:
Accounts payable and accrued liabilities 5,002
Interest payable 1,782
Refundable deposits 40
Unearned revenue 126
Noncurrent liabilities:
Due within one year 1,832
Due in more than one year 89,420
Net pension liability 2,788
Net OPEB liability 127
Total liabilities 101,117
Deferred inflows of resources:
Pension items 1,692
Net position:
Net investment in capital assets 12,099
Restricted for:
Shoreline Community indebtedness 61,254
Unrestricted 9,415
Total net position 82,768 $
See accompanying notes to the financial statements. 191 MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Statement of Activities ‐ Governmental Activities
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Program Revenues Net (Expense)
Capital Revenue and
Charges for Grants and Changes in
Expenses Services Contributions Net Position
Function/Program Activities:
General government 21,335 $ ‐ ‐ (21,335) Public safety 130 ‐ ‐ (130) Public works 1,926 ‐ ‐ (1,926) Community development 311 ‐ 14,428 14,117 Culture and recreation 6,744 427 ‐ (6,317) Interest on long‐term debt 4,073 ‐ ‐ (4,073) Total governmental activities 34,519 $ 427 14,428 (19,664) General revenues:
Property taxes 55,486
Capital contributions from the City of Mountain View 34,262 Investment income (1,197)
Transfers:
Transfers from the City of Mountain View 1,120
Transfers to the City of Mountain View (15,121)
Transfer of capital assets to the City of Mountain View (398) Total general revenues and transfers 74,152
Change in net position 54,488
Net position, beginning of year 28,280
Net position, end of yea
r 82,768$
See accompanying notes to the financial statements. 192 MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Governmental Funds
Balance Sheet
June 30, 2022
(Dollars in Thousands)
Shoreline Shoreline Shoreline
Regional Regional Park Regional Park
Park Community 2011 Community 2018
Community Revenue Bonds Revenue Bonds Total
Cash and investments 80,585 $ ‐ ‐ 80,585 Restricted cash and investments ‐ 6,500 ‐ 6,500 Receivables:
Accounts 57 ‐ ‐ 57 Interest 588 ‐ ‐ 588 Total assets 81,230 $ 6,500 ‐ 87,730 Liabilities and fund balances:
Accounts payable and accrued liabilities 5,002 $ ‐ ‐ 5,002 Refundable deposits 40 ‐ ‐ 40 Unearned revenue 126 ‐ ‐ 126 Total liabilities 5,168 ‐ ‐ 5,168 Restricted 61,254 6,500 ‐ 67,754 Committed 14,808 ‐ ‐ 14,808 Total fund balances 76,062 6,500 ‐ 82,562 Total liabilities and fund balances 81,230 $ 6,500 ‐ 87,730 Assets:
Liabilities:
Fund Balances:
See accompanying notes to the financial statements. 193 MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Reconciliation of the Balance Sheet of Governmental Funds to the Government‐wide Statement of Net Position ‐ Governmental Activities
June 30, 2022
(Dollars in Thousands)
Fund balances ‐ total governmental funds 82,562$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets net of depreciation, used in governmental activities are not financial resources and, therefore, are not reported in the funds. 96,851 Interest payable on long‐term debt does not require the use of current (1,782)
Deferred outflows and inflows of resources for pension and OPEB items Deferred outflows of resources 996
Deferred inflows of resources (1,692)
Noncurrent liabilities, including bonds payable, are not due and Net pension liability (2,788)
Net OPEB liability (127)
Bonds and loans payable (91,252)
Net position of governmental activities 82,768$
financial resources and, therefore, interest payable is not accrued as a liability in the balance sheet of governmental funds.
payable in the current period and therefore are not reported in the governmental funds.
in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.
See accompanying notes to the financial statements. 194 MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Shoreline Shoreline Shoreline
Regional Regional Park Regional Park
Park Community 2011 Community 2018
Community Revenue Bonds Revenue Bonds Total
Revenues:
Property taxes 55,486 $ ‐ ‐ 55,486 Use of money and property (901) 2 ‐ (899) Charges for services 76 ‐ ‐ 76 Developer fees and contributions 14,428 ‐ ‐ 14,428 Other 53 ‐ ‐ 53 Total revenues 69,142 2 ‐ 69,144 Expenditures:
Current:
General government 21,287 ‐ ‐ 21,287 Public safety 90 ‐ ‐ 90 Public works 1,126 ‐ ‐ 1,126 Community development 289 ‐ ‐ 289 Culture and recreation 3,913 ‐ ‐ 3,913 Capital outlay 62 ‐ ‐ 62 Debt service:
Principal ‐ 2,085 ‐ 2,085 Interest and fiscal charges ‐ 1,254 3,079 4,333 Total expenditures 26,767 3,339 3,079 33,185 Excess (deficiency) of revenues
over (under) expenditures 42,375 (3,337) (3,079) 35,959 Other financing sources (uses):
Transfers in ‐ 3,337 3,079 6,416 Transfers out (6,416) ‐ ‐ (6,416)
Transfers from the City of Mountain View 1,120 ‐ ‐ 1,120 Transfers to the City of Mountain View (15,121) ‐ ‐ (15,121) Total other financing sources (uses) (20,417) 3,337 3,079 (14,001) Net change in fund balances 21,958 ‐ ‐ 21,958
Fund balances, beginning of year 54,104 6,500 ‐ 60,604 Fund balances, end of year 76,062$ 6,500 ‐ 82,562 See accompanying notes to the financial statements. 195 MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government‐wide Statement of Activities ‐ Governmental Activities For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Net change in fund balances ‐ total governmental funds 21,958 $ Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Capital assets additions ‐ Contributions from the City of Mountain View 34,262$ Capital assets additions ‐ Capital outlay 62
Capital assets retirements (66)
Depreciation (4,330)
Transfer of capital assets to the City of Mountain View (398) 29,530 Pension and OPEB contributions made subsequent to the measurement date are expenditures in the governmental funds, but reported as deferred outflows of resources in the government‐wide financial statements. 888 Pension and OPEB expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (233)
The repayment of the principal of long‐term debt consumes the current financial resources of governmental funds. 2,085
Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of bond premium 217
Change in accrued interest payable 43 260 Change in net position of governmental activities 54,488$ See accompanying notes to the financial statements. 196 MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Shoreline Regional Park Community Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance ‐ Budget and Actual For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:
Property taxes 49,074 $ 49,074 55,486 6,412 Use of money and property 1,807 1,807 (901) (2,708) Charges for services 55 55 76 21 Developer fees and contributions ‐ ‐ 14,428 14,428 Other 34 34 53 19 Total revenues 50,970 50,970 69,142 18,172 Expenditures:
Current:
General government:
City attorney 10 20 6 14 Finance and administrative services 20,740 21,310 21,281 29 Public safety:
Fire 169 173 50 123 Police 40 40 40 ‐ Public works 1,378 1,440 1,126 314 Community development 536 537 289 248 Culture & recreation:
Community services 4,479 4,572 3,913 659 Capital outlay 67 67 62 5 Total expenditures 27,419 28,159 26,767 1,392 Excess of revenues over expenditures 23,551 22,811 42,375 19,564 Other financing sources (uses):
Transfers out (6,421) (6,421) (6,416) 5 Transfers from the City of Mountain View ‐ ‐ 1,120 1,120
Transfers to the City of Mountain View (13,584) (15,119) (15,121) (2) Total other financing sources (uses) (20,005) (21,540) (20,417) 1,123 Net change in fund balances 3,546$ 1,271 21,958 20,687 Fund balance, beginning of year 54,104
Fund balance, end of year 76,062$
See accompanying notes to the financial statements. 197
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MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
199
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Mountain View Shoreline Regi onal Park Community (Shoreline Community) was established in 1969 pursuant to the provisions of the Mountain View Shoreline Regional Park Community Act (Act). The purpose of the Shoreline Community is to provide for the develo pment of approximately 1,550 acres of Bayfront lands.
The Shoreline Community is an integral part of the City of Mountain View (City). The Shoreline C o m m u n i t y ’ s B o a r d ( B o a r d ) i s c o m p r i s e d o f t h e s a m e m e m b e r s a s the City Council and the City’s management has operational responsibility of the Shoreline Comm unity. Therefore, the Shoreline Community is considered a blended component unit of the City and its financial activities are included within the City’s annual comprehensive financial report.
The Shoreline Community’s primary source of revenue is property taxes, which are computed and allocated to the Shoreline Community as follows:
a. The assessed valuation of all property within the Shoreline Com munity’s boundaries is determined and “frozen” for allocation purposes on the date of adoption by the Shoreline Community of a designation of a “base year” assessment roll. Sh oreline Community designated the fiscal year ended 1977‐78 as the base year.
b. Increments in property taxes resulting from any increase in assessed values after the adoption of the Shoreline Community are allocated to the Shoreline Commu nity; all property taxes on the “frozen” assessed valuation of the property are allocated to the City and other taxing entities receiving taxes within the Shoreline Community’s boundaries.
The Shoreline Community has no power to levy or collect taxes. Any legislative property tax reduction would lower the amount of tax revenues that would otherwise be available to pay principal and interest on debt or loans from the City and any increase in the tax rate or assessed valuation or any elimination of present exemptions would increase the amount of tax revenues available for this purpose. The Shoreline Community is also authorized to finance the North Bay shore Plan from other sources, including assistance from the Ci ty, the State and federal gover nments, interest income and the issuance of Shoreline Community debt.
A. Basis of Presentation
The Shoreline Community’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ( G A A P ) . T h e G o v e r n m e n t a l Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities. These standards require that the financial statements described below be presented.
Government‐wide Statements ‐ T h e S t a t e m e n t o f N e t P o s i t i o n a n d t h e S t a t e m e n t o f A c t i v i t i es display information about the financial activities of the primary government (the Shoreline Community). Eliminations have been made to minimize the double counting of internal activities.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
200
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Statement of Activities presents a comparison between direc t expenses and program revenues for each function of the Shoreline Community’s activities. Direct expenses are those that are specifically associated with a program or function and, the refore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributi ons of capital assets or resources that are restricted for capital purposes. Revenues that are no t classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements ‐ The fund financial statements provide information about the Shoreline Community’s funds. The emphasis of fund financial sta tements is on major individual funds, each of which is displayed in a separate column.
B. Major Funds
The Shoreline Community reports major governmental funds in the basic financial statements as follows:
Shoreline Regional Park Community Fund (Special Revenue) ‐ This fund receives property tax revenues on properties within the Shoreline Community. The fund accounts for the revenues and expenditures of the Shoreline Community. This is the operating fund of the Shoreline Community.
Shoreline Regional Park Commu nity 2011 Revenue Bonds Fund (Debt Service) – This fund accounts for the resources used for the purpose of paying the principal, interest and related costs on the Shoreline Regional Park Community 2011 Revenue Bonds as they become due.
Shoreline Regional Park Commu nity 2018 Revenue Bonds Fund (Debt Service) – This fund accounts for the resources used for the purpose of paying the principal, interest and related costs on the Shoreline Regional Park Community 2018 Revenue Bonds (Se ries A and Series B) as they become due.
C. Basis of Accounting
The government‐wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting . Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The Shoreline Community considers all revenues reported in th e governmental funds to be available if the revenues are collected within sixty days after fiscal year
end. Expenditures are recorded when the related fund liab ility is incurred, except for principal and interest on general long‐term debt which are reco gnized as expenditures to the extent they have matured and are due and payable at year end. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds from long‐term debt issuance and acquisitions under capital leases are reported as other financing sources.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
201
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Non‐exchange transactions, in which the Shoreline Community gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements and donations. On the accrual basis, revenues from property taxes are recognized in the fiscal y e a r f o r w h i c h t h e t a x e s a r e l e v i e d . R e v e n u e s f r o m g r a n t s , e n t itlements and donations are recognized in the fiscal year in which all eligibility requirem ents have been satisfied.
Those revenues susceptible to accrual are property taxes, earned grant entitlements, and investment revenue. All other revenue items are considered to be measurable and available only when cash is received.
The Shoreline Community may receive funding for specific program s t h a t i s r e s t r i c t e d t o t h e operations of these programs. The Shoreline Community also receives unrestricted revenues from different funding sources. When restricted program expenses are i n c u r r e d , i t i s t h e S h o r e l i n e Community’s policy to first apply revenues from the restricted sources to these programs and then apply unrestricted general revenue.
Certain indirect costs are included in program expenses reported for individual functions and activities.
D. Property Taxes
The County of Santa Clara (County) assesses properties and it bills, collects and distributes property taxes to the Shoreline Community. The County remits to the Shoreline Community the entire amount levied above the frozen base and handles all delinquencies, retaining interest and penalties.
Secured and unsecured property taxes are levied on July 1 for the fiscal year.
Secured property tax becomes a lien on January 1 and is due in two installments, on November 1 and February 1. It becomes delinquent after December 10 and April 10, respectively.
Unsecured property tax bills are distributed in July and are due upon receipt, and become delinquent after August 31. Collection of delinquent accounts is the responsibility of the County, which retains all penalties.
The term “unsecured” refers to taxes on personal property other than real estate, land and buildings and are secured by liens on the property owner. Unsec u r e d may al so i n c lud e t h e property taxes paid in lieu on leased property. Property tax revenues are recognized by the Shoreline Community in the fiscal year they are levied, provide d they become available as defined above.
E. Deferred Outflows and Inflows of Resources
In addition to assets, the Statement of Net Position reports a s e p a r a t e s e c t i o n f o r d e f e r r e d outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that app lies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
202
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In addition to liabilities, the Statement of Net Position reports a separate section for deferred inflows of resources. This separate financial statement elemen t, 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.
F. Pension and Other Postemployment Benefits (OPEB) Items
For purposes of measuring the ne t pension liability and net OPE B liability, deferred outflows/inflows of resources related to pension and OPEB, and pension and OPEB expenses, information about the fiduciary net position of the City’s Pens ion and OPEB plans and additions to/deductions from the plans’ fiduciary net positions have been determined on the same basis as they are reported by the California Public Employees’ Retiremen t System (CalPERS) and the California Employer’s Retiree Benefit (CERBT) Trust Fund, respe ctively. For this purpose, benefit payments (including refunds of employee contributions) are reco gnized when due and payable in accordance with the benefit terms. CalPERS plan member contributions are recognized in the period in which the contributions are due. Investments are repo rted at fair value. The Shoreline Community’s financial statements reflect its proportionate shar e o f t h e P e n s i o n a n d O P E B liabilities, deferred outflows/inflows of resources and expenses.
G. Effects of New GASB Pronouncements
As of July 1, 2021, the Shoreline Community implemented the following GASB Statement:
In June 2017, the GASB issued Statement No. 87, Leases. The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The purpose of this Statement is to increase the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classifi ed as operating leases and recognized as inflows of resources or outflows of resources bas ed on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an und erlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right‐to‐use lease a s s e t , a n d a l e s s o r i s r e q u i r e d t o r e c o g n i z e a l e a s e r e c e i v a b l e and a deferred inflow of resources, thereby enhancing the relevance and consistency of i nformation about governments’ leasing activities. Implementation of this statement did not have a significant impact on the Shoreline Community’s financial statements for th e fiscal year ended June 30, 2022.
In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the
End of a Construction Period. The objectives of this statement are 1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period, and 2) to simplify accounting for interest cost incurred before the end of a construction period. Implementation of this statement did not have a significant impact on the Shoreline Community’s financial statements for the fiscal year ended June 30, 2022.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
203
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I n J an u a r y 2 0 2 0 , t h e G A S B i s s u e d S t a t e m e n t N o . 9 2 , Omnibus 2020. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing pract ice issues that have been identified during implementation and application of certain GAS B Statements.
I m p l e m e n t a t i o n o f t h i s s t a t e m e n t d i d n o t h a v e a s i g n i f i c a n t i m pact on the Shoreline Community’s financial statements for the fiscal year ended June 30, 2022.
In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates .
The objective of this Statement is to address those and other a ccounting and financial reporting implications that result from the replacement of an i nterbank offered rate.
I m p l e m e n t a t i o n o f t h i s s t a t e m e n t d i d n o t h a v e a s i g n i f i c a n t i m pact on the Shoreline Community’s financial statements for the fiscal year ended June 30, 2022.
In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Se ction 457 Deferred Compensation Plans – an Amendment of GASB Statements No. 14 and N o . 8 4 , a n d a Supersession of GASB Statement No 32 . The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing boa rd typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance t he relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet t he definition of a pension plan and for benefits provided through those plans. Implementation of this statement did not have a significant impact on the City’s financial statements fo r the fiscal year ended June 30, 2022.
In April 2022, the GASB issued Statement No. 99, Omnibus 2022. T h e o b j e c t i v e s o f t h i s statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (a) practice issues that been identified during implementation and application of certain GASB Statements and (b) accounting and financial reporting for financial guarantees. The requirements related to the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statements No. 53 and No. 63 are effective upon issuance. Implementation of these requirements did not have a signifi cant impact on the
Shoreline Community’s financial statements for the fiscal year ended June 30, 2022.
The Shoreline Community is currently analyzing its accounting p ractices to identify the potential impact on the financial statements for the GASB statements as follows:
In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
204
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
and eliminate diversity in practice associated with 1) commitments extended by issuers, 2) arrangements associated with conduit debt obligations, and 3) r elated note disclosure. The requirements of this statement are effective for the Shoreline Community’s fiscal year ending June 30, 2023.
In March 2020, the GASB issued Statement No. 94, Public‐Private and Public‐Public Partnerships and Availability Payment Arrangements. T h e o b j e c t i v e o f t h i s S t a t e m e n t i s t o improve financial reporting by addressing issues related to public‐private and public‐public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange‐like transaction. The requirements of this statement are effective for the Shoreline Community’s fiscal year ending June 30, 2023.
In May 2020, the GASB issued Statement No. 96, Subscription‐Based Information Technology Arrangements. This Statement provides guidance on the accounting and finan cial reporting for subscription‐based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right‐to‐use subscription asset—an intangible asset—and a cor responding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA.
The requirements of this statement are effective for the Shoreline Community’s fiscal year ending June 30, 2023.
In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The requirements related to leases, public‐private partnerships (PPPs), and SBITAs are effective for the Shoreline Community’s fiscal year ending J une 30, 2023. The requirements related to financial guarantees and the classification and reporting of derivative i nstruments within the scope of Statement No. 53 are effective for the Shoreline Community’s fiscal year ending June 30, 2024.
In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections – An Amendment of GASB Statement No. 62 . The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant consistent, and comparable information for making decisions or assessing accountability. The requirements of this statement are effective for the Shoreline Community’s fiscal year ending June 30, 2024.
In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved
by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this statement are effective for the Shoreline Community’s fiscal year ending June 30, 2025.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
205
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Use of Estimates
The preparation of financial sta tements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financi al statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING
A. Budgets and Budgetary Accounting
The Shoreline Community adopts an annual budget on or before Ju ne 30 for the ensuing fiscal year for the Shoreline Regional Park Community Fund.
No annual budgets are adopted for the Shoreline Community’s Deb t Service Funds. Repayment of the debt is authorized by the adoption of the indenture provisions for the life of the debt.
Budget appropriations become effective each July 1. The Board may amend the budget during the fiscal year. The legal level of budgetary control has been established at the fund and department level. Appropriations generally lapse at the end of the fiscal year to the extent they have not been expended or encumbered.
The Shoreline Regional Park Community Fund’s annual budget is p resented on a basis consistent with the basic financial statements prepared in accordance with GAAP.
Budgeted revenue amounts represent the original budget modified by adjustments authorized during the fiscal year. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the fiscal year and reap propriated amounts for encumbrances and donations outstanding at the end of each prior fiscal year.
The Shoreline Community’s Board must approve appropriation incr eases to departmental budgets; however, management may transfer Board‐approved budgeted amounts within fund and departmental expenditure classifications. Judgments, settlemen ts and accrual entries are not subject to budgetary control and expenditures exceeding budget due to these items do not constitute a violation of budget policy or control. Supplemental appropriations were approved during the course of the fiscal year as needed.
B. Encumbrance Accounting
Under encumbrance accounting, purchase orders, contracts and ot her commitments for the expenditure of monies are recorded in order to reserve that por tion of the applicable appropriation. Encumbrance accounting is employed as an extensi on of formal budgetary integration. Encumbrances outstanding at fiscal year end are automatically reappropriated for inclusion in the following fiscal year’s budget.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
206
NOTE 3 – CASH AND INVESTMENTS
A. Classification
Cash and investments are classified in the financial statements, based on whether or not their use is restricted under the terms of debt instruments. Investme nts are carried at fair value as of June 30, 2022. Cash and investments are as follows (dollars in thousands):
Cash and investments 80,585$
Restricted cash and investments 6,500
Total cash and investments 87,085$
The Shoreline Community’s cash and investments of $80.6 million are invested in the City’s cash and investments pool. Restricted cash and investments are held by bond trustee of whi ch $5.9 million and $0.6 million are invested in U.S. Treasury Obligations and Money Market Mutual Funds, respectively.
B. Investments In City’s Cash and Investment Pool
The City Council is responsible for the regulatory oversight of the City’s cash and investments pool.
The City's Investment Policy and the California Government Code permit investments in the following: Securities issued by the U.S. Government or as an ag ency of the U.S. Government, mortgage‐backed securities, commercial paper, banker’s acceptances, medium term notes issued by U.S. corporations, mutual funds invested in U.S. Government securities, certificates of deposit, municipal bonds issued by the City or any of its component unit s, the Local Agency Investment Fund (LAIF), and Supranational securities.
As of June 30, 2022, the City’s cash and investments pool was c omprised primarily of investments in securities issued by the U.S. Government and its agencies, medium term notes, supranational securities, LAIF, bonds issued by the Shoreline Community, and money market mutual funds. The City’s cash and investments pool is unrated and has a modified duration of 1.88 years. Additional information regarding the interest rate, credit, concentration of credit risks and fair value hierarchy of the City’s cash and investments pool can be found in the notes to the City’s basic financial statements.
C. Investments Held by Bond Trustee
The Shoreline Community must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of its debt issues. These funds are pledged as reserves to be used if the Shoreline Community fails to meet its obligations under these debt issues. The investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s Investment Policy. These debt agreements do not address interest rate, credit and concentration of credit risks.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
207
NOTE 3 – CASH AND INVESTMENTS (Continued)
The investment types that are authorized for investments held by bond trustee are as follows:
Authorized Investment Type
Maximum
Maturity
U.S. Treasury Obligations No Limit
U.S. Agency Securities No Limit
Deposit Accounts, Federal Funds and Banker's
Acceptances 360 days
FDIC Insured Certificates of Deposit No Limit
Commercial Paper 270 days
Money Market Mutual Funds No Limit
State and Local Agency Bonds No Limit
Insurer Approved Investment Contracts No Limit
Insurer Approved Other Forms of Investments
Including Repurchase Agreements No Limit
Local Agency Investment Fund (LAIF) No Limit
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rat es. The City monitors the interest rate risk inherent in its portfolio by measuring the modified durati on (modified duration is a measure of a fixed income’s cash flows using present values, weighted f or cash flows as a percentage of the investments’ full price) of its portfolio. The City monito rs interest rate risk inherent in investments held by the trustee by using specific identification. The Shoreline Community’s investment in the U.S. Treasury Obligations of $5.9 million has a maturity date of June 15, 2023.
C r e d i t R i s k
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 202 2, the Shoreline Community’s investments in Money Market Mutual Funds are rated AAA by Stand ard & Poor’s, while investments in U.S. Treasury Obligations are exempt from credit rating disclosure.
Concentration of Credit Risk
The Shoreline Community is required to disclose investments tha t represent a concentration of
5.0 percent or more of investments in any one issuer other than U.S. Treasury Obligations, money market funds and external investment pools. As of June 30, 2022, none of the Shoreline Community’s investments are subject to concentration of credit risk disclosure.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
208
NOTE 3 – CASH AND INVESTMENTS (Continued)
D. Fair Value Hierarchy
The Shoreline Community categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The h ierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other obse rvable inputs; and Level 3 inputs are significant unobservable inputs. The Shoreline Community’s investment in the U.S. Treasury Obligations are measured using level 2 inputs, while investment in the City’s cash and investments pool and Money Market Mutual Funds a r e n o t s u b j e c t t o f a i r v a l u e h i e r a r c h y . I n v e s t m e n t s measured using level 2 inputs are valued using prices determined by the use of matrix pricing techniques maintained by the pricing vendors for these investments. Matrix pricing is used to value investments based on the investments’ relationship to benchmark quoted prices.
NOTE 4 – INTERFUND TRANSFERS
With Board approval, resources may be transferred from one fund to another. The purpose of the majority of transfers is to allocate resources from the fund that receives them to the fund where they will be spent without a requirement for repayment. For the fiscal year ended June 30, 2022, Shoreline Regional Park Community Fund transferred $3.3 million and $3.1 million to the Shoreline Reg ional Park Community 2011 Revenue Bonds Fund and Shoreline Regional Park Community 2018 Revenue Bonds Fund, respectively, to fund debt service payments.
NOTE 5 – TRANSACTIONS WITH THE CITY
Transfers Between the Shoreline Community and the City
The City expends funds on capital projects on behalf of the Shoreline Community which transfers the required funds to the City prior to the commencement of the project. Any unspent funds are returned to the Shoreline Community upon completion of the project.
During the fiscal year ended June 30, 2022, the Shoreline Community transferred to the City $14.9 million to fund capital projects, $127,000 for equipment replacements, and $89,000 for operating costs. The City transferred $1.1 million to the Shoreline Community to return i nterest earnings on available capital projects balances and unspent funds on completed capital projec ts.
NOTE 6 – CAPITAL ASSETS
All capital assets, including intangible assets, are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets , donated works of art and similar items, and c a p i t a l a s s e t s r e c e i v e d i n a s e r v i c e c o n c e s s i o n a r r a n g e m e n t a r e valued at their acquisition value. The Shoreline Community defines capital assets as assets with an in itial individual cost of more than $100,000 for land and infrastructure, $25,00 0 f o r b u i l d i n g s a n d i m p r o v e ments other than buildings, and $5,000 for others, and an estimated useful life in excess of two years.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
209
NOTE 6 – CAPITAL ASSETS (Continued)
Depreciation is provided using the straight‐line method, which means the cost of the asset is divided by its expected useful life in years and the result is charged to expe nse each fiscal year until the asset is fully depreciated. The City has assigned the useful lives to capital assets as follows:
Buildings 25 to 50 years
Improvements other than buildings 5 to 50 years
Machinery and equipment 3 to 20 years
Traffic signals 20 years
Streetlights 50 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
A. Capital Asset Activities
Capital assets activity for the fiscal year ended June 30, 2022 is as follows (dollars in thousands):
Balance Balance
June 30, 2021 Additions Retirements Transfers June 30, 2022 Capital assets not being depreciated:
Land $ 15,860 28,471 ‐ ‐ 44,331 Construction in progress 13,647 5,822 ‐ (1,600) 17,869 Total capital assets not being depreciate d 29,507 34,293 ‐ (1,600) 62,200 Capital assets being depreciated:
Buildings 23,908 ‐ ‐ ‐ 23,908 Improvements other than buildings 102,924 ‐ ‐ 1,202 104,126 Machinery and equipment 2,240 31 ‐ ‐ 2,271 Traffic signals 1,546 ‐ (46) ‐ 1,500 Streetlights 1,029 ‐ (20) ‐ 1,009 Total capital assets being depreciated 131,647 31 (66) 1,202 132,814 Less accumulated depreciation for:
Buildings (11,952) (708) ‐ ‐ (12,660) Improvements other than buildings (78,586) (3,470) ‐ ‐ (82,056) Machinery and equipment (1,822) (93) ‐ ‐ (1,915) Traffic signals (843) (39) ‐ ‐ (882) Streetlights (630) (20) ‐ ‐ (650) Total accumulated depreciation (93,833) (4,330) ‐ ‐ (98,163) Net capital assets being depreciated 37,814 (4,299) (66) 1,202 34,651 Total capital assets, net 67,321$ 29,994 (66) (398) 96,851
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
210
NOTE 6 – CAPITAL ASSETS (Continued)
During the fiscal year ended June 30, 2022, the Shoreline Commu nity transferred certain infrastructure including bridges and culverts; sidewalks, curbs and gutters; and streets and roads funded by the Shoreline Community totaling $398,000 to the City in accordance with the Act.
B. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each governmental activity function for the fiscal year ended June 30, 2022 are as follows (dollars in thousands):
General government 48$
Public safety 40
Public works 955
Community development 64
Culture and recreation 3,223
Total 4,330$
C. Construction Commitments
The Shoreline Community has active construction projects that include land; improvements other than buildings; and infrastructure. Commitments with contractors for construction, as of June 30, 2022, are as follows (dollars in thousands):
Spent Remaining
to Date Commitment
Land ‐ $ 58
Improvements other than buildings 6,552 3,413 Buildings 500 2,763
Infrastructure 10,817 11,643
Total 17,869 $ 17,877
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
211
NOTE 7 – NONCURRENT LIABILITIES
The Shoreline Community generally incurs long‐term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt. The Shoreline Community’s debt issues and transactions are summarized below and discussed in detail thereafter.
A. Composition and Changes
Noncurrent liabilities activities for the fiscal year ended Jun e 30, 2022, are as follows (dollars in thousands):
Original Balance Balance Due
Issue June 30, June 30, Within
Amount 2021 Additions Retirements 2022 One Year
Revenue Bonds:
Shoreline Regional Park Community
2011 Revenue Refunding Bonds
2.0% to 5.75%, due Fiscal Year 2040‐41 $ 39,030 23,880 ‐ (2,085) 21,795 695 Shoreline Regional Park Community
2018 Revenue Bonds Series A
5.0%, due Fiscal Year 2048‐49 53,485 53,485 ‐ ‐ 53,485 ‐ Add unamortized premium 6,416 5,874 ‐ (217) 5,657 217 Subtotal 2018 Revenue Bonds Series A 59,901 59,359 ‐ (217) 59,142 217 Shoreline Regional Park Community
2018 Revenue Bonds Series B
3.36% to 4.24%, due Fiscal Year 2031‐32 10,315 10,315 ‐ ‐ 1 0,315 920 Total noncurrent liabilities $ 109,246 93,554 ‐ (2,302) 91,252 1,832
B. Descriptions of Noncurrent Liabilities
2011 Revenue Bonds Shoreline Regional Park Community ‐ On July 19, 2011, the Shoreline Community issued $39.0 million of 2011 Revenue Bonds, Series A. Proceeds from the bonds were used to call the outstanding Shoreline Community’s Tax Allocation Bonds, 1996 Series A and provide funds to acquire and construct certain capital impr ovements of benefit to the Shoreline Community. The 2011 Bonds are special obligations of the Shoreline Community and are secured by a portion of all taxes levied upon all taxable p roperty within the Shoreline Community. Principal payments are payable annually on August 1 and interest payments semi‐ annually on August 1 and February 1 from property tax revenues generated within the Shoreline Community. The Shoreline Community is considered to be in defa ult if the Shoreline Community fails to pay the principal of and interest on the outstanding bonds when become due and payable.
If an event of default has occurred and is continuing, the trus tee may, and if requested in writing by the owners of a majority in aggregate principal amount of the bonds then outstanding, declare the principal of the bonds, together with the accrued interest, to be due and payable immediately.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
212
NOTE 7 – NONCURRENT LIABILITIES (Continued)
2018 Revenue Bonds Shoreline Regional Park Community ‐ On December 19, 2018, the Shoreline Community issued 2018 Revenue Bonds, Series A (Tax‐Exempt) and Series B (Taxable) (2018 Bonds) of $53.5 million and $10.3 million, respectively. Proceeds from the 2018 Bonds were used to provide funds to acquire and construct certain capital improvements of benefit to the Shoreline Community. The 2018 Bonds are special obligations of the Shoreline Community and are secured by a portion of all taxes levied upon all taxable property with in the Shoreline Community.
Principal payments are payable annually on August 1 and interes t payments semi‐annually on August 1 and February 1 from property tax revenues generated within the Shoreline Community.
The Shoreline Community is considered to be in default if the Shoreline Community fails to pay the principal of and interest on the outstanding bonds when become due and payable. If an event of default has occurred and is continuing, the trustee may, and if requested in writing by the owners of a majority in aggregate principal amount of the bonds then o utstanding, declare the accreted value and principal of the bonds, together with the accrued inte r e s t , t o b e d u e a n d p a y a b l e immediately.
C. Debt Service Requirements
The pledge of future tax increment revenues ends upon repayment of the $156.8 million in remaining debt service on the Shoreline Community’s Revenue Bon ds, which is scheduled to occur in Fiscal Year 2048‐49. For the fiscal year ended June 30, 2022, tax increment revenues amounted to $55.5 million, which represented coverage of 8.6 over the $6.4 million in debt service.
Annual debt service requirements to maturity are as follows (dollars in thousands):
For the Fiscal Year
Ending June 30 Principal Interest Total
2023 $ 1,615 4,243 5,858 2024 1,680 4,175 5,855 2025 1,750 4,103 5,853 2026 1,825 4,026 5,851 2027 1,905 3,945 5,850 2028‐2032 10,830 18,297 29,127 2033‐2037 13,895 15,193 29,088 2038‐2042 18,010 10,969 28,979 2043‐2047 23,130 5,743 28,873 2048‐2049 10,955 554 11,509 Total $ 85,595 71,248 156,843
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
213
NOTE 8 – PENSION PLAN
A. General Information about the Pension Plan
Plan Descriptions – All qualified regular and probationary employees are eligible to participate in the City’s Miscellaneous Plan (Plan), agent multiple‐employer d efined benefit pension plan administered by the California Public Employees’ Retirement Sys tem (CalPERS), which acts as a common investment and administrative agent for its participating member employers. 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 plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov. The Shoreline Community participates in a cost‐sharing arrangement in the City’s Plan and a proportionate share of pension balances are a llocated to the Shoreline Community.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost‐of‐ living adjustments and death benefits to plan members, who must b e p u b l i c e m p l o y e e s a n d beneficiaries. Benefits are based on years of credited service, age at retirement and compensation.
The cost‐of‐living adjustments fo r the CalPERS plans are applie d as specified by the Public Employees’ Retirement Law. The California Public Employees’ Pension Reform Act (PEPRA), which became effective in January 2013, changes the way CalPERS retir ement and health benefits are applied, and places compensation limits on members. As such, members who established CalPERS membership on or after January 1, 2013 are known as “PEPRA” members.
The Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows:
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 + 52+
Required employee contribution rates 8.00% 7.00%
Required employer contribution rates 34.99% 34.99% (A)
Miscellaneous
(A) The minimum employer contribution rate under PEPRA is the greater of the required employer rate cost or the employer normal costs.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
214
NOTE 8 – PENSION PLAN (Continued)
Contributions – Section 20814(c) of the Califor nia Public Employees’ Retirement Law requires the employer contribution rates for all public employers to be dete rmined on an annual basis by the CalPERS actuary and shall be effective on the July 1 following notice of a change in the rate. The actuarially determined rate is the projected 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 Shoreline Community is required to contribute it s proportionate share of the difference between the actuarially determined rate and the cont ribution rate of employees. For Fiscal Year 2021‐22, the Shoreline Community recognized $761,000 as contributions for pension.
B. Net Pension Liability
The Shoreline Community’s net pension liability in the Plan is measured as the proportionate share of the City’s net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liabilit y used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, using standard update procedures. The Shoreline Community’s proportion of the net pen sion liability was based on the projection of the Shoreline Community’s long‐term share of contributions to the pension plan relative to the projected contributions of all participating City funds, actuarially determined.
The change in the Shoreline Community’s proportionate share of the net pension liability as of June 30, 2022 and 2021, (measurement dates of June 30, 2021 and 2020 , respectively) for the Plan are as follows (dollars in thousands):
Net Pension
Liability
Proportion of
the City's
Miscellaneous
Plan
Proportion ‐ Measurement date June 30, 2021 2,788 $ 4.61% Proportion ‐ Measurement date June 30, 2020 5,268 4.51% Change (2,480) $ 0.10%
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
215
NOTE 8 – PENSION PLAN (Continued)
Actuarial Assumptions – The total pension liability for the Plan in the June 30, 2020 a c t u a r i a l valuation was determined using actuarial assumptions as follows:
Misce llane ous Plan
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry‐Age Normal Cost Method
Actua ri a l As s umpti ons :
Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase Varies by Entry Age and Service Post Retirement Benefit Increase The lessor of contract COL A or 2.50% until Purchasing Power Protection Allowance Floor on
purchasing power applies, 2.50% thereafter.
Mortality Derived using CalPers Membership Data
for all Funds (1)
(1) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre‐retirement and post‐retirement mortality rates includes 15 years of projected mortality improvements using 90 percent of Scale MP‐2016 published by the Society of Actuaries. For more details on this table, please refer to the 2017 CalPERS E xperience Study available on the CalPERS website.
All other actuarial assumptions used in the June 30, 2020 actua rial valuation were based on the 2017 CalPERS Experience Study for the period 1997 to 2015, including updates to salary increase, mortality and retirement rates. Further details of the 2017 CalPERS Experience Study can be found on the CalPERS website under Forms and Publications.
Discount Rate – The discount rate used to measure the total pension liability was 7.15 percent for the Plan. The projection of cash flows used to determine th e discount rate assumed that the contributions from employers will be made at current member con tribution rates and that contributions from employers will be made at statutorily requir ed rates, actuarially determined.
Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long‐term expected r at e of r e t u rn on p l an in ve st m e nt s w as ap p l i e d t o al l p e r i od s of projected benefit payments to determine the total pension liability.
The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
216
NOTE 8 – PENSION PLAN (Continued)
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 ex pected pension fund cash flows.
Using historical returns of all the funds’ asset classes, expected compound ( geometric) returns were calculated over the short‐term (first 10 years) and the long‐term (11+ years) using a building‐ block approach. Using the expected nominal returns for both sho rt‐term and long‐term, the present value of benefits was calculated for each fund. The exp ected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using bo th short‐term and long‐term returns. The expected rate of return was then set equal to the single equivalent rate calculated and adjusted to account for assumed administrative expenses.
The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The long‐term expected real rate of return by asset class and the target allocation adopted by the CalPERS Board effective on July 1, 2020, are as follows:
Asset Class
Current
Target
Allocation
Real Return
Years 1 ‐ 10 1
Real Return
Years 11+ 2
Global Equity 50.0% 4.80% 5.98%
Global Fixed Income 28.0 1.00 2.62
Inflation Sensitive 0.0 0.77 1.81
P r i v a t e E q u i t y 8 . 06 . 3 07 . 2 3
Real Estate 13.0 3.75 4.93
Liquidity 1.0 0.00 (0.92)
(1) An expected i nf l ati on rate of 2.00 percent is used f or thi s peri od. (2) An expected inflation rate of 2.92 percent is used for this period.
On November 17, 2021, the CalPERS Board adopted a new strategic asset allocation. The new asset allocation along with the new cap ital market assumptions, economic assumptions and administrative expenses assumption support a discount rate of 6.90% (net of investment expenses but without a reduction for administrative expense) for financial reporting purposes. This includes a r e d u c t i o n i n t h e p r i c e i n f l a t i o n a s s u m p t i o n f r o m 2 . 5 0 % t o 2 . 3 0 % a s r e c o m m e n d e d i n t h e November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rate s, mortality rates and rates of salary increases that were adopted by the CalPERS Board. These new assumptions will be reflected in the accounting valuation reports for the June 30, 2022 measurement date.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
217
NOTE 8 – PENSION PLAN (Continued)
Sensitivity of the Net Pension Liability to Changes in the Disc ount Rate – The Shoreline Community’s proportionate share as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the Shoreline Community’s net pension liability would be if it were calculated using a discount rate that is one percentage po int lower or one percentage point higher than the current rate are as follows (dollars in thousands):
Discount Rate
‐1% (6.15%)
Current
Discount Rate
(7.15%)
Discount Rate
+1% (8.15%)
5,610$ 2,788 448
Shoreline Community's proportionate
share of the City's Miscellaneous Plan
net pension liability
C. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the fiscal year ended June 30, 2022, the Shoreline Community recognized pension expense of $105,000. The Shoreline Community reported deferred outflows of resources related to pensions by sources for the fiscal year ended June 30, 2022 are as follows (dollars in thousands):
Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Pension contributions subsequent to
measurement date $ 761 ‐ Differences between expected and
actual experience 108 ‐ Net differences between projected and actual
earnings on plan investments ‐ 1, 692 Total $ 869 1,692
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
218
NOTE 8 – PENSION PLAN (Continued)
As of June 30, 2022, the Shoreline Community reported $761,000 a s d e f e r r e d o u t f l o w s o f resources related to contributions subsequent to the measuremen t date which will be recognized as a reduction of the net pension liability in the f iscal year ending June 30, 2023. Net amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense are as follow s (dollars in thousands):
Fiscal Year Ending
June 30, Amount
2023 (349) $
2024 (375)
2025 (407)
2026 (453)
Total (1,584) $
NOTE 9 – OTHER POST‐EMPLOYMENT BENEFITS
A. General Information about the OPEB Plan
Plan Descriptions – By Council resolution and through agreements with its labor units, the City provides certain health care benefits for retirees (spouse and dependents are not included for CalPERS Miscellaneous employees, but are included for CalPERS Safety employees in the CalPERS Health Program governed by the Public Employees’ Medical and Hospital Care Act (PEHMCA)) under a single employer defined benefit OPEB plan. In December 2008, the City entered into an agreement with CalPERS to participate in CERBT, an agent multiple‐employer other postemployment benefits plan, to fund the City’s OPEB. CERBT is administrated by CalPERS, is managed by an appointed board not under the control of the City Council. CERBT issues a publicly available financial report that can be found on the CalPERS website at www.calpers.ca.gov. The Shoreline Community participates in a cost‐sharing arrangement in the City’s OPEB plan and a proportionate share of OPEB balances are allocated to the Shoreline Community.
The City also offers a Defined Contribution (DC) Plan to eligible miscellaneous employees. If an employee elects to participate in the DC Plan, the City makes contributions on behalf of the employee into a Health Savings Account (HSA). Employees who have elected the DC Plan are not included in the City’s actuarial valuation for OPEB.
Benefits Provided – The City provides medical and vision OPEB benefits. Additiona l information regarding the benefits provided for the City’s OPEB plan can be found in the notes to the City’s basic financial statements.
Contributions – The City’s OPEB funding policy is to contribute 100 percent or more of the actuarially determined contribution each year. For the fiscal y ear ended June 30, 2022, the Shoreline Community’s contributions totaled $127,000.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
219
NOTE 9 – OTHER POST‐EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability
The Shoreline Community’s net OPEB liability in the City’s OPEB Plan is measured as the proportionate share of the City’s net OPEB liability. The City’ s net OPEB liability is measured as of June 30, 2021 using an annual actuarial valuation as of June 30 , 2021. The Shoreline Community’s p r op or t i on of th e n et O PEB l i ab i l it y w as b ase d on th e p r oj e c t i on of the Shoreline Community’s long‐term share of contributions to the OPEB plan relative to the p r oj e c t ed con t r i b u ti on s of al l participating City funds, actuarially determined.
The change in the Shoreline Community’s proportionate share of the net OPEB liability as of June 30, 2022 and 2021 (measurement dates of June 30, 2021 and 2020, respectively) for the OPEB Plan is as follows (dollars in thousands):
Net OPEB
Liability
Proportion of
the City's
OPEB Plan
Proportion ‐ Measurement date June 30, 2021 127 $ ‐0.49% Proportion ‐ Measurement date June 30, 2020 112 2.08% Change 15 $ ‐2.57%
Actuarial Assumptions – The total OPEB liability for the City’s OPEB plan in the June 30, 2021 actuarial valuation were determined using actuarial assumptions as follows:
Valuation Date June 30, 2021
Measurement Date June 30, 2021
A ct uarial Cost Me t hod E nt ry‐A ge N orm al Cost Me t hod A ct uarial A ssum pt ions:
Discount Rate 6.00%
Inflation 2.50%
Projected Salary Increase 3.00%
Post Retirement Benefit Increase For medical plan premiums: 5.70% for the year beginning January 1, 2022 and graded down until 4.00%
ultimate rate is reached.
For vision premiums: 3.00%
Mortality Derived using CalPERS Membership Data
for all Funds (1)
(1) Demographic actuarial assumptions used are based on the 2017 Ca lPERS Experience Study for the period from 1997 to 2015, except for the MacLeod Watts Scale 20 18 applied generationally from 2015 as the basis to project future morality improvements. The representative mortality rates were those published by CalPERS, adjusted to back out 15 years of Scale MP‐2016 to central year 2015.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
220
NOTE 9 – OTHER POST‐EMPLOYMENT BENEFITS (Continued)
Change in Assumptions – During the measurement period 2021, the discount rate was re duced from 6.25 percent to 6.00 percent. Inflation rate was reduced from 2.75 percent to 2.50 percent.
Other assumptions including projected salary increase, post retirement benefit increase, and other demographic assumptions were also changed.
Discount Rate – The discount rate used to measure the total OPEB liability is 6.00 percent. The projection of cash flows used to determine the discount rate assumed that the City’s contribution will be made equal to the actuarially determined contribution. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long‐term expected rate of r e t u r n o n O E P B p l a n i n v e s t m e n t s i s a p p l i e d t o a l l p e r i o d s o f p rojected benefit payments to determine the total OPEB Liability.
The long‐term expected rate of return for OPEB plan investments is 6.00 percent. Using historical returns of all the funds’ asset classes, expected compound geometric returns were calculated over the short‐term (first 10 years) and the long‐term (11+ years) using a building‐block approach.
The long‐term expected real rate of return by asset class and the target allocation are as follows:
Asset Class
Current Target
Allocation
Real Return
Years 1‐10 1
Real Return
Years 11+ 2
Global Equity 40.0% 4.80% 5.98%
Fixed Income 43.0 1.10 2.62
REITS 8.0 3.20 5.00
TIPS 5.0 0.25 1.46
Commodities 4.0 1.50 2.87
(1) An expected i nf l ati on rate of 2.00 percent is used for thi s peri od. (2) An expected i nf l ati on rate of 2.92 percent is used f or thi s peri od.
Sensitivity of the Net OPEB Liability to Changes in the Discoun t Rate – The Shoreline Community’s proportionate share of the net OPEB liability, calc ulated using the discount rate of
6.00 percent, as well as what the net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate are as follows (dollars in thousands):
Discount Rate
‐1% (5.00%)
Current
Discount Rate
(6.00%)
Discount Rate
+1% (7.00%)
127$ 127 127
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
221
NOTE 9 – OTHER POST‐EMPLOYMENT BENEFITS (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Healthc are Cost Trend Rates – The Shoreline Community’s proportionate share of the net OPEB liabi lity, as well as what the net OPEB liability would be if it wer e calculated using healthcare c o s t t r e n d r a t e s t h a t a r e o n e percentage point lower or one percentage point higher than the current rate are as follows (dollars in thousands):
Healthcare
Cost Trend
Rate ‐1%
Healthcare
Cost Trend
Current Rate
Healthcare
Cost Trend
Rate +1%
127$ 127 127
C. OPEB Expenses and Deferred Outflows of Resources Related to OPEB
For the fiscal year ended June 30, 2022, the Shoreline Community recognized OPEB expense of $127,000. As of June 30, 2022, the Shoreline Community reported $127,000 as deferred outflows of resources related to contributions for OPEB subsequent to the measurement date, which will be recognized as a reduction of the net OPEB liability in the f iscal year ending June 30, 2023.
NOTE 10 – RISK MANAGEMENT
The Shoreline Community is covered under the City’s insurance pr o g r a m a n d t h e r e f o r e c o n t r i b u t e s i t s proportionate share of cost. The City is exposed to various risks of loss related to torts, errors and omissions, injuries to employees or others, unemployment and ce rtain health care benefits of employees. The City has established various self‐insurance prog rams to account for and finance its uninsured risks of loss. Under the self‐insurance programs, the City retains the risk of loss up to a maximum of $1.0 million for general liability claims, $750,000 for workers' compensation claims with statutory excess insurance and actual costs incurred for unempl oyment and certain health care benefits.
For general liability claims, the City has excess liability coverage through the Authority for California Cities Excess Liabilities (ACCEL) to cover the risk of loss for claims in excess of $1.0 million per incident.
ACCEL is a joint powers authority of medium‐sized California municipalities, which pools catastrophic general liability, automobile liability and public officials’ e rrors and omissions losses.
Additional information regarding the City’s insurance program can be found in the notes to the City’s basic financial statements.
NOTE 11 – NET POSITION AND FUND BALANCES
A. Net Position
Net position is the excess of all assets and deferred outflows of resources over all liabilities and deferred inflows of resources, regardless of fund. Net position is divided into three captions on the Statement of Net Position. T hese captions apply only to net position, which is determined at the Government‐wide level and are described as follows:
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
222
NOTE 11 – NET POSITION AND FUND BALANCES (Continued)
Net investment in capital assets – This caption groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt, i n c l u d i n g d e b t r e l a t e d d e f e r r e d o u t f l o w s a n d i n f l o w s o f r e s o u r ces that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
Restricted ‐ This caption represents net position, which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws or other restrictions which the Shoreline Community cannot unilaterally alter.
Unrestricted – This caption represents net position of the Shoreline Community not restricted for any project or purpose.
B. Fund Balances
Governmental fund balances represent the assets and deferred outflows of resources less the liabilities and deferred inflows of resources of each fund. Governmental funds report fund balance in classifications based primarily on the extent to which the Shoreline Community is bound to honor constraints on how specific amounts in the funds can be spent. For programs with multiple funding sources, the Shoreline Community prioritizes and expends funds in the following order:
Restricted, Committed, Assigned and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint as follows:
Nonspendable fund balances are amounts that cannot be spent because they are either (a) not in spendable form; or (b) legally or contractually required to be maintained intact.
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 a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources. As of June 30, 2022, the Shoreline Community has restricted fund balances of $61.3 million for Shoreline Community indebtedness and $6.5 million for debt service.
Committed fund balances have constraints imposed by resolution of the Board, which may only be altered by resolution of the Board. Nonspendable amounts subject to Board commitments are included along with spendable resources. As of June 30, 2022, the Shoreline Community has committed fund balances of $14.8 million for capital projects.
Assigned fund balances are amounts constrained by the Board’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the Board or its designees and may be changed at the discretion of the Board or its designees. The Board has not delegated the authority to make assignments of fund balance. This category also includes residual fund balances which have not been restricted or committed.
Unassigned fund balance represents residual fund deficits.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
223
NOTE 11 – NET POSITION AND FUND BALANCES (Continued)
C. Minimum Fund Balance / Net Position Policies
The City’s Financial and Budgetary Policy requires the Shorelin e Community to maintain a reserve of 25 percent of operating budget for three months of operating expenditures; the landfill reserve shall be incrementally increased to accumulate funds to rebuild the landfill system, which is initially estimated at approximately $12.0 million, in case of a catastro phic event; and the sea level rise reserve shall be incrementally increased to $30.0 million for flood protection projects necessary to protect public and private investments within the Shoreline Community identified in the Sea Level Rise Study.
D. Landfill Containment Reserve
In 2013, CalRecycle regulations required the City to create a r eserve, in whole or incrementally, for potential corrective actions associated with a non‐water re lease event at the landfill site.
The estimated costs of the corrective actions are adjusted annu ally by an inflation factor approved by CalRecycle. On June 25, 2013, the City Council and the Board approved to set‐aside funds for landfill containment in the landfill reserve of the Shoreline Regional Park Community Fund. The City estimated the costs for the corrective actions to be $1.1 million for the fiscal year ended June 30, 2022 and $12.0 million to rebuild a new landfill system. As of June 30, 2022, the Shoreline Regional Park Community Fund has reported $10.0 million for the landfill containment as part of restricted fund balance and planned to increase the bal ance by $1.0 million annually until $12.0 million is reached.
NOTE 12 – COMMITMENTS AND CONTINGENCIES
A. Encumbrances
The Shoreline Community’s outstanding encumbrances as of June 30, 2022, are $295,000 recorded as part of restricted fund balance.
B. Education Enhancement Rese rve Joint Powers Agreement
On June 30, 2013, the Shoreline Community entered into an Education Enhancement JPA with the Mountain View Los Altos Unified High School District (MVLAU HSD) and the Mountain View Whisman School District (MVWSD) effective July 1, 2013, for a period of 10 years, superseding any prior agreements. The agreement provides for minimum annua l payments commencing with the fiscal year ended June 30, 2014 of $1.8 million and $2.9 million to MVLAUHSD and MVWSD, respectively. Each subsequent fiscal year increases based on the growth in property tax revenues in the preceding fiscal year. For the fiscal year ended June 30, 2022, the Shoreline Community paid a total of $8.2 million in contributions to the school districts.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
224
NOTE 12 – COMMITMENTS AND CONTINGENCIES
C. Tax Revenue Sharing
Pursuant to an agreement between the City, the Shoreline Community, and the County dated June 22, 2005, the Shoreline Community is annually obligated to pay the County from tax revenues, an amount equal to the County’s total retirement tax override levies and pass‐through an additional amount of taxes that would have been allocated to the County in the absence of the existence of the Shoreline Community. For the fiscal year ended June 30, 2022, $1.9 million and $2.6 million in retirement tax override levies and pass‐through payments, respectively, were paid to the County.
2022 2021 2020 2019 2018 2017 2016 2015
Measurement period 2021 2020 2019 2018 2017 2016 2015 2014 Shoreline Community's proportion of the net pension liability (NPL) 4.6% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% Shoreline Community's proportionate share of the NPL $ 2,788 5,268 5,032 5,038 5,431 4,948 4,177 3,783 Shoreline Community's covered payroll $ 2,149 2,037 2,009 1,907 1,797 1,622 1,520 1,429 Shoreline Community's proportionate share of the NPL
as a percentage of its covered payroll 129.7% 258.6% 250.5% 264.2% 302.2% 305.1% 274.8% 264.6% City Miscellaneous Plan's fiduciary net position as a percentage of the City Miscellaneous Plan's total pension liability 87.5% 74.8% 74.8% 73.4% 70.2% 70.0% 73.4% 74.9% Note to schedule:
*
Benefit Changes ‐ The figures above do not include any liability impact that may have resulted from plan changes, which occurred after the June 30, 2020 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Change in assumptions ‐ During measurement period 2014, the discount rate was 7.50%. During measurement period 2015, the discount rate was increased from 7.50 percent to 7.65 percent. There is no change in discount rate during measurement period 2016. During measurement period 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. During measurement period 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There are no change in assumptions during measurement periods 2019, 2020, and 2021.
Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only eight years of information is shown.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Required Supplementary Information (Unaudited)
Schedule of the Shoreline Community's Proportionate Share of the Net Pension Liability (Dollar in Thousands)
Fiscal Year Ended June 30,
225
Fiscal Year Ended June 30 2022 2021 2020 2019 2018 2017 2016 2015 2014 Contractually required
contributions (actuarially determined) (CRC) $ 761 680 847 779 819 565 509 359 284 Contributions in relation to the CRC (761) (680) (847) (779) (819) (565) (509) (359) (284) Contribution deficiency (excess) $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0% ‐ Covered payroll $ 2,243 2,149 2,037 2,009 1,907 $ 1,797 $ 1,622 $ 1,520 1,429 Contributions as a percentage of
covered payroll 33.9% 31.6% 41.6% 38.8% 42.9% 31.4% 31.4% 23.6% 19.9% Actuarially determined contribution for fiscal year June 30, 2022 Actuarial valuation date June 30, 2019
Actuarial cost method Entry‐Age Normal Cost Method
Asset valuation method Actuarial value of assets
Inflation 2.50%
Salary increases Varies by entry age and services
Payroll growth 2.75%
Investment rate of return
Retirement age
Mortality
*
Fiscal Year Ended June 30,
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Required Supplementary Information (Unaudited)
Schedule of the Shoreline Community Pension Contributions (Dollar in Thousands)
7.00%, net of pension plan investment and administrative expenses, includes inflation.
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period 1997 to 2015.
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2022 were as follows:
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre‐retirement and post‐retirement mortality rates includes 15 years of projected mortality improvements using 90% of Scale MP‐2016 published by the Society of Actuaries.
Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only nine years of information is shown. 226
2022 2021 2020 2019 2018
Measurement period 2021 2020 2019 2018 2017
Shoreline Community's proportion of the net OPEB liability (NOPEBL) ‐0.5% 2.1% 6.8% 1.1% 3.3% Shoreline Community's proportionate share of the NOPEBL $ 127 $ 112 $ 602 $ 290 $ 1,085 Shoreline Community's covered payroll $ 2,149 2,037 2,009 1,907 1,797 Shoreline Community's proportionate share of the NOPEBL as a percentage of its covered payroll 5.9% 5.5% 30.0% 15.2% 60.4% City OPEB Plan's fiduciary net position as a percentage of the City OPEB Plan's total OPEB liability 117.3% 96.4% 93.9% 82.8% 76.9% Note to schedule:
*
Change in assumptions ‐ During measurement period 2019, the discount rate was reduced from 6.50 percent to 6.25 percent. Demographic assumptions were change in accordance to the 2017 CalPERS Experience Study. There is no change in assumptions during measurement period 2020. During the measurement period 2021, the discount rate was reduced from 6.25 percent to 6.00 percent. Inflation rate was reduced from 2.75 percent to 2.50 percent. Other assumptions including projected salary increase, post retirement benefit increase, and other demographic assumptions were also changed.
Fiscal year ended June 30, 2018 was the first year of implementation of GASB Statement No. 75, therefore only five years of information is shown.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNIT
Y
Required Supplementary Information (Unaudited)
Schedule of the Shoreline Community's Proportionate Share of the Net OPEB Liability (Dollar in Thousands)
Fiscal Year Ended June 30,
227
Schedule of the Shoreline Community OPEB Contributions
Fiscal Year Ended June 30 2022 2021 2020 2019 2018 2017 Actuarially determined contributions (ADC) $ 127 112 602 290 1,085 1,014 Contributions in relation to the ADC (127) (112) (602) (290) (1,085) (1,014) Contribution deficiency (excess) $ ‐ ‐ ‐ ‐ ‐ ‐ Covered payroll $ 2,243 2,149 2,037 2,009 1,907 1,797 Contributions as a percentage of
covered payroll 5.7% 5.2% 29.6% 14.4% 56.9% 56.4%
ADC for fiscal year June 30, 2022
Actuarial valuation date June 30, 2021
Actuarial cost method Entry‐Age Normal Cost Method
Asset valuation method Actuarial value of assets
Inflation 2.50%
Projected salary increases 3.00%
Investment rate of return
Post Retirement Benefit Increase
Mortality
*
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Fiscal year ended June 30, 2018 was the first year of implementation of GASB Statement No. 75, therefore only six years of information is shown.
6.00%
For medical plan premiums: 5.70% for the year beginning January 1, 2022 and graded down until 4.00% ultimate rate is reached.
For vision premiums: 3.00%
Derived using CalPERS Membership Data for all Funds. Demographic actuarial assumptions used are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015, except for the MacLeod Watts Scale 2018 applied generationally as the basis to project future morality improvements. The representative mortality rates were those published by CalPERS, adjusted to back out 15 years of Scale MP‐2016 to central year 2015.
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2022 were as follows:
Fiscal Year Ended June 30,
Required Supplementary Information (Unaudited)
(Dollar in Thousands)
228
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Shoreline Regional Park Community Fund
For the Fiscal Year Ended June 30, 2022
229
The Administrative Fund in accordance with the Act, accounts for moneys may be transfer red from the Special Fund for deposit to pay for the administrative expenses and overhead of the Shoreline Community.
The Special Fund in accordance with the Act, accounts for all tax revenues received by the Shoreline Community are deposited in the Special Fund and will be used to pay the principal of and interest on loans, advances, or other indebtedness of the Shoreline Community.
The North Bayshore Impact Fee Fund accounts for the revenues collected for fees adopted to assist with funding improvements in the Shoreline Community.
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Shoreline Regional Park Community Fund
Combining Balance Sheet
June 30, 2022
(Dollars in Thousands)
Shoreline Shoreline
Regional Regional North
Park Park Bayshore
Community Community Impact
Administrative Special Fee Total
Cash and investments 62,084 $ 3,750 14,751 80,585 Receivables:
Accounts 57 ‐ ‐ 57 Interest 531 ‐ 57 588 Total assets 62,672 $ 3,750 14,808 81,230 Liabilities and fund balances:
Accounts payable and accrued liabilities 5,002 ‐ ‐ 5,002 Refundable deposits 40 ‐ ‐ 40 Unearned revenue 126 ‐ ‐ 126 Total liabilities 5,168 ‐ ‐ 5,168 Restricted 57,504 3,750 ‐ 61,254 Committed ‐ ‐ 14,808 14,808 Total fund balances 57,504 3,750 14,808 76,062 Total liabilities and fund balances 62,672 $ 3,750 14,808 81,230 Assets:
Liabilities:
Fund Balances:
230
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Shoreline Regional Park Community Fund
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Shoreline Shoreline
Regional Regional North
Park Park Bayshore
Community Community Impact Interfund
Administrative Special Fee Elimination Total
Revenues:
Property taxes ‐ $ 55,486 ‐ ‐ 55,486 Use of money and property (962) 34 27 ‐ (901) Charges for services 76 ‐ ‐ ‐ 76 Developer fees and contributions ‐ ‐ 14,428 ‐ 14,428 Other 53 ‐ ‐ ‐ 53 Total revenues (833) 55,520 14,455 ‐ 69,142 Expenditures:
Current:
General government 21,287 ‐ ‐ 21,287 Public safety 90 ‐ ‐ ‐ 90 Public works 1,126 ‐ ‐ ‐ 1,126 Community development 289 ‐ ‐ ‐ 289 Culture and recreation 3,913 ‐ ‐ ‐ 3,913 Capital outlay 62 ‐ ‐ ‐ 62 Total expenditures 26,767 ‐ ‐ ‐ 26,767 Excess (deficiency) of revenues
over (under) expenditures (27,600) 55,520 14,455 ‐ 42,375 Other financing sources (uses):
Transfers in 49,629 ‐ ‐ (49,629) ‐
Transfers out ‐ (56,045) ‐ 49,629 (6,416) Transfers from the City of Mountain View 936 ‐ 184 ‐ 1,120 Transfers to the City of Mountain View (12,331) ‐ (2,790) ‐ (15,121) Total other financing sources (uses) 38,234 (56,045) (2,606) ‐ (20,417) Net change in fund balances 10,634 (525) 11,849 ‐ 21,958
Fund balances, beginning of year 46,870 4,275 2,959 ‐ 54,104 Fund balances, end of year 57,504$ 3,750 14,808 ‐ 76,062 231
232
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www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
233
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
Board of Directors of the
Mountain View Shoreline Regional Park Community
City of Mountain View, California
We have audited, in accordance with the auditing standards gene rally 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 fin ancial statements of the governmental activities and each major fund of the Mountain View Shoreline R egional Park Community (Shoreline Community), a component unit of the City of Mountain View, Cali fornia (City), as of and for the fiscal year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Shoreline Community’s basic financial statements, and have issued our report thereon dated November 18, 2022.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Shoreline Community’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Shoreline Community’s internal control. Accordingly, we do not express an opinion on the effe ctiveness of the Shoreline Community’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 cor rected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpo se described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations , during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Shoreline Community’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and gran t agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opin ion on compliance with those provisions was not an objective of our audit, and accordingly, we do not e xpress 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.
234
Purpose of this Report
The purpose of this report is solely to describe the scope of o ur 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.
Walnut Creek, California
November 18, 2022