ATT 2 - ACFR and Independent Auditor's Reports — Mountain View City Council, December 12, 2023

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Attachment 2
Mission Statement:

The City of Mountain View provides quality services
and facilities that meet the needs of a caring and diverse community in a financially responsible manner.

CITY OF MOUNTAIN VIEW, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Prepared by the
FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
i
Table of Contents
INTRODUCTORY SECTION Exhibit
Letter of Transmittal ............................................................................................................................................ 1 City Officials .......................................................................................................................................................... 2 City Government Organization ............................................................................................................................ 3 GFOA Certificate of Achievement for Excellence in Financial Reporting........................................................... 4 FINANCIAL SECTION Page
Independent Aud
itor’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, 2023
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
Financi
al 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, 2023
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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Exhibit 1

OFFICE OF THE CITY MANAGER
500 Castro Street, P.O. Box 7540
Mountain View, CA 94039‐7540
650‐903‐6301 | MountainView.gov

November 27, 2023

Honorable Mayor, City Council, and Members of the Mountain View Community:

I submit for your information and consideration the Annual Comp rehensive Financial Report (ACFR) of the City of Mountain View (City) for the fiscal year ended June 30, 2023.

FACTORS AFFECTING FINANCIAL CONDITION

Over the past year, the City has emerged from the COVID‐19 pand emic and is back in business and more resilient than ever. Thanks to the leadership of the City Council and through the support and hard work of the Executive Leadership team and our outstanding City employees, we have provided an exceptional level of service to our communi ty while maintaining fiscal stability.

While we welcome the return to normalcy, we are cautiously opti mistic about future fiscal growth. The economy proved to be much more resilient in 2023 t han economists expected.

However, 2024 is expected to be weaker. Economists are predicting that rising unemployment and disinflation will lead to a reduction in the Federal funds rate in late 2024 to reduce further economic weakening.

The current General Operating Fund Forecast indicates sufficient financial resources to maintain the Mountain View of today, but building the Mountain View of t omorrow will require that we continue to enhance and diversify the City’s revenue streams to maintain ongoing fiscal stability and accomplish bold initiatives the City is advancing.

This includes exploring additional funding via a revenue measure in 2024 for necessary Citywide enhancements, which may include addressing aging facilities and Citywide infrastructure, building new parks and open spaces, implementing ambitious decarbonization and sustainability programs, and building more affordable housing.

Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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FINANCIAL INFORMATION

As we move ahead, I am pleased to present the City’s Annual Com prehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. 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.

Though the audit is conducted by an independent certified public accounting firm, City management assumes full responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures. 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 a ctivity 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 activities and status.

To provide a basis for making these representations, City management has established a comprehensive internal control framework that is designed 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 books, financial records, and 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 objective of the independen t audit is to provide reasonable assurance that the financial statements of the City and related entities are free of material misstatement. The independent auditor concluded, based upon their audit, that there was a reasonable basis for rendering an unmodified “clean” opinion on the City’s basic financial statements as of, and for, the fiscal year ended June 30, 2023, and they are fairly presented in conformity with GAAP. The independent auditor’s report is presented at the beginni ng of the financial section of this report, on Page 1.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in a section titled Ma nagement’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 imme diately following the report of the independent auditors. The notes to the financial statement s are provided in the financial Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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section and are considered essential to fair presentation and a dequate disclosure. The ACFR is divided into the following sections:

The Introductory Section includes this letter of transmittal, a n overview of the organizational structure of the City, and prior awards received.

The Financial Section includes the following:

• Independent Auditor’s Report.

• Management’s Discussion and Analysis.

• Basic Financial Statements—Includes the government‐wide finan cial statements that p r e s e n t a n o v e r v i e w o f t h e C i t y ’ s e n t i r e f i n a n c i a l o p e r a t i o n s and the fund financial statements that present financial information for each of the C ity’s major funds as well as other governmental, proprietary, and custodial funds.

• Notes to Basic Financial Statements—The notes provide additio nal information that is essential to a full understanding of the data provided in the government‐wide and fund financial statements.

• Required Supplementary Informa tion—Includes schedules required to be presented, showing information related to the City’s pension plans and Other Post‐Employment Benefits plan.

• Other Supplementary Information —Includes the Budgetary Schedule of the Park Land Dedication Capital Projects Fund, Combining Statements and Sche dules of the nonmajor governmental funds, internal service funds, and custodial funds.

The Statistical Section includes tables containing historical f inancial 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 expenditure information as well as 10 years of net position/fund balance information.

This ACFR includes the results of financial activities of the primary government, which encompasses several enterprise activities as well as all 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.

Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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PROFILE OF THE GOVERNMENT

The City was incorporated on November 7, 1902. The City Charte r 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 t hat are staggered so three or 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 83,600 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 manag ement, 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, performin g arts, and golf course); and

• The City also provides water, wastewater, and solid waste uti lity 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 sev en‐member City Council serves as the governing body of the Mountain View Shoreline Regional Park Community and the City of Mountain View Capital Improvements Financing Authority, although these agencies are legal entities separate from the City. These two agencies are co nsidered 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.

Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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No other agencies or activities associated with the City, or ut ilizing 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 bud get by June 30 to be in effect for the ensuing fiscal year, which begins July 1. Budgets are appr oved 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 project s must be submitted to the 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.

The local economy continues to e xperience a rebound from the CO VID‐19 pandemic, primarily due to higher‐than‐expected reven ues, specifically transient oc cupancy taxes (TOT), sales tax, and use of money and property (investment and rental income). TOT revenue increased from $4.4 million in Fiscal Year 2021‐22 to $9.5 million in Fiscal Year 2022‐23, an increase of 114.6%.

The addition of two new hotels and overall increases in occupancy rates and daily room rates have led to the large increase in TOT revenue. It is anticipat ed that business travel will not experience any additional growth in the near future; therefore, TOT revenue is projected to remain at the same level for Fiscal Year 2023‐24.

Even though the City has experienced an increase in General Fun d revenues, the local business community continues to see lasting impacts from the COVID‐19 pandemic. As businesses grapple with hybrid and remote workforce strategies, commercial real es tate vacancy rates continue to increase. Office vacancy rates in Silicon Valley were estimated to be 19.8% between July and September 2023, with Mountain View estimated to be 26.6% for the same time period, according to Colliers, a commercial real estate firm.

Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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Another indicator of the local economy’s health is unemployment . The unemployment rate in Mountain View in September 2023 was estimated to be 2.8% compared to the prior‐year rate of

1.8% for the same month, reflecting the relative continued strength of employment in the local region. Unemployment rates in the area are expected to continu e to increase as corporate layoffs continue.

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 rating reflec ts the City’s sizeable property tax base, substantial revenue generated annually by the numerous commercial and residential leases in which the City is the lessor, and a positive financial position supported by strong reserve levels and a very modest debt burden.

The economic vitality of the City relies upon a strong and diversified business community that is flexible enough to withstand economic challenges. As part of the City’s economic development efforts, the City works to attract and retain companies with growth potential and make the City a desirable location for the cor porate community. As a result, Mountain View continues to be recognized as a prime location in Silicon Valley in which to li ve 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 businesses, especially start‐up

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Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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companies, because of the diverse number of retailers, restaura nts, 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 fis cal planning, has allowed the City to increase resources where needed and to pay down pension and other postemployment benefit obligations. It has also allowed for the maintenance o f adequate reserves for times of economic downturn.

General Fund revenues totaled $234.0 million in Fiscal Year 2022‐23 compared to $213.2 million in Fiscal Year 2021‐22, an increase of $20.8 million, or 9.8%. Growth in property taxes, use of money and property, sales taxes, other taxes, and grant funding received have primarily driven the increase in General Fund revenue for Fiscal Year 2022‐23.

Property Tax

Property tax accounts for 33.8% of total General Fund revenues and is a key indicator of the City’s economic outlook. Property tax revenue in the General Fund totaled $79.0 million in Fiscal Year 2022‐23 compared to $72.3 m illion in Fiscal Year 2021‐22, an increase of $6.7 million, or

9.3%. Even though property tax revenue is projected to experience a moderate increase in Fiscal Year 2023‐24, near double‐digit growth is not expected to be achieved again in the near future.

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Property Tax Revenue ‐ General Fund
(in millions)
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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The median sales price of single family residences was $2.5 million for the quarter ended June 30, 2023. As can be seen in the chart below, this price has remained relatively stable since decreasing from a high of $2.9 million for the quarter ended March 31, 2022.

Source: HdL Coren & Cone

As median sales prices hover around $2.5 million and 30‐year fi xed mortgage rates hit 8%, the number of home sales in the local housing market continue to slow. There were 227 single family home sales in Fiscal Year 2022‐23, compared to 340 in Fiscal Year 2021‐22, a decrease of 113, or

33.2%.

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Mountain View Detached Single Family Residential Full Value Sales Median Price Average Price
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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Use of Money and Property

Use of money and property, which consists primarily of lease revenue and investment earnings, is an important source of Gene ral Fund revenue and accounts for 20.3% of total General Fund revenues. This revenue source generated $47.5 million in Fiscal Year 2022‐23, an increase of $9.8 million, or 26.0%, when compa red to Fiscal Year 2021‐22. Use of Money and Property revenue is projected to experience a moderate increase in Fisca l Year 2023‐24 as the City’s investment portfolio earns higher investment returns.

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Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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Sales Tax

Sales tax is another important source of General Fund revenue a s it accounts for 10.9% of total General Fund revenues. Sales tax revenue in the General Fund t otaled $25.4 million in Fiscal Year 2022‐23 compared to $23.5 m illion in Fiscal Year 2021‐22, an increase of $1.9 million, or

8.1%. Sales tax revenue is projected to stay relatively flat for Fiscal Year 2023‐24.

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.

As part of the Fiscal Year 2023‐24 Adopted Budget, a Five‐Year Financial Forecast (Forecast) was developed for Fiscal Years 2023‐24 through 2027‐28. 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 t he revenue sources and their connection to regional, State, national, and international econ omic 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.

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Sales Tax Revenue ‐ General Fund
(in millions)
Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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The General Fund Forecast projects positive ending operating balances for Fiscal Years 2023‐24 through 2027‐28. Fiscal Years 2023‐24 and 2024‐25 are projecte d to achieve modest positive operating balances, with smaller positive balances projected fo r Fiscal Years 2025‐26 through Fiscal Year 2027‐28. Operating and emergency reserves are also maintained at levels to withstand possible future economic downturns.

In summary, overall revenues are expected to continue to grow a t a modest level during the forecast period due to the continued growth in property and oth er taxes as well as from future anticipated new development projects in the City that will add to the tax base over an extended period of time.

RELEVANT FINANCIAL POLICIES

The City Council has established a financial and budgetary poli cy framework which is reviewed and updated as necessary by the Ci ty Council. A comprehensive and consistent set of financial and budgetary policies provides a basis for sound financial pla nning, 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.

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Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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APPROPRIATIONS LIMIT

Article XIIIB of the California State Constitution, which became effective in Fiscal Year 1979‐80, and which was modified (by Pro position 111) in November 1989, e stablishes, by formula, an appropriation limit for governmental agencies. Using the appropriations of Fiscal Year 1978‐79 as the base year, the limit is modified by the growth in inflat ion and population during each fiscal year. Inflation is measured as the year‐over‐year growt h in per‐capita personal income, while population growth is based on a weighted growth measure t hat blends growth in the civilian population with growth in K‐12 and community college a verage daily attendance.

Article XIIIB also sets the guidelines as to what is to be included in the appropriation limits.

The City’s appropriation limit for Fiscal Year 2022‐23 was $342 ,417,977; the City’s actual appropriations subject to the limit were $119,596,661, far below the limit. The Fiscal Year 2022‐23 appropriation limit increased from $315,571,679 in Fiscal Year 2021‐22 due primarily to the increase of 7.55% in California per‐capita personal income over the prior year, one of the factors used in calculating the change in the appropriation limit.

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Honorable Mayor, City Council, and
Members of the Mountain View Community
November 27, 2023

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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, 2022. This was the 33rd consecutive year the City has received this prestigious award. In order to be awarded a Certificate of Ach ievement, the City had to publish an easily readable and efficiently organized ACFR that satisfie d both GAAP and applicable legal requirements. The GFOA award is valid for a one‐year period only. I 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 Bu dget Presentation Award for the City’s annual budget document for Fiscal Year 2022‐23. 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.

Special recognition is extended to Arn Andrews, Assistant City Manager; Derek Rampone, Finance and Administrative Services Director; Grace Zheng, Assistant Finance and Administrative Services Director; and the entire staff of the Finance and Administrativ e Services Department for their dedication to all City departments, residents, and customers on a daily basis. The preparation of this report could not have been achieved without the skillful, dedicated, and efficient services of the entire staff of the Finance and Administrative Services Department. In particular, Helen He, Accounting Manager; Janet Shum, Se nior Accountant; and Marichi Valle, Accountant, were instrumental in preparing the ACFR accurately and in a timely m anner. Every member of the department deserves recognition a n d t h a n k s f o r t h e i r c o m m i t m e n t to the City and their profession. I would also like to thank the members of the City Council and Council Finance Committee for their leadership and policy guidance in managing the financial operations of the City in a fiscally responsible manner that continues to serve in the best interests of the residents of the City.

Respectfully submitted,

Kimbra McCarthy
City Manager

City of Mountain View
California
City Officials
City Council
Mayor - Alison Hicks
Vice Mayor - Pat Showalter
Margaret Abe-Koga
Ellen Kamei
Lisa Matichak
Lucas Ramirez
Emily Ann Ramos
Executive Staff
City Manager - Kimbra McCarthy
City Attorney - Jennifer Logue
City Clerk - Heather Glaser
Assistant City Manager - Audrey Seymour Ramberg
Assistant City Manager - Arn Andrews
Assistant City Manager/Community Development Director - Aarti Shrivastava CID/Information Technology Director - Roger Jensen
Community Services Director - John Marchant
Finance and Administrative Services Director - Derek Rampone Fire Chief - Juan Diaz
Housing Director - Wayne Chen
Human Resources Director - Sue Rush
Library Services Director - Tracy Gray
Police Chief - Michael Canfield
Public Works Director - Dawn Cameron
Exhibit 2

CITY GOVERNMENT ORGANIZATION

MOUNTAIN VIEW RESIDENTS
I

CITY COUNCIL
I
CITY ATTORNEY ) CITY MANAGER CITY CLERK CITY AUDITOR*
I I

I I I I I

COMMUNITY COMMUNITY CITY MANAGER'S FINANCE AND INFORMATION ADMINISTRATIVE DEVELOPMENT SERVICES OFFICE TECHNOLOGY SERVICES I I 7 r r---- I

HUMAN LIBRARY HOUSING PUBLIC FIRE POLICE RESOURCES WORKS KEY: C==> ELECTED
C=:> APPOINTED BY COUNCIL
� APPOINTED BY CITY MANAGER

CITY BOARDS, COMMISSIONS, AND COMMITTEES
Charter Non-Charter
I I "'
Environmental Planning Commission Bicycle/Pedestrian Advisory Committee Board of Library Trustees Downtown Committee
Parks and Recreation Commission Human Relations Commission Rental Housing Committee 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 as appointed by City Council.

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, 2022
Executive Director/CEO
Exhibit 4
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 activities, 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, 202 3, and the related notes 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, 2023, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, the Shoreline Regional Park Community Fund, and the Ho using 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 generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As discussed in Note 1 to the financial statements, as of July 1, 2022, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

2 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements 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 h igh 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 m aterial misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

• exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, 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 responsibility of management and, although not a part of the basic financial statements, is required by the GASB who considers it to be an essential p art 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of th e basic financial 3 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 applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the individual and combining fund financial statements and schedules is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report.

The other information comprises the introductory section, statistical section, and component unit financial 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 other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists 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 27, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Walnut Creek, California
November 27, 2023

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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, 2023

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, 2023. We encourag e readers to consider the info rmation presented here in conjunction with additional information that has been furnished in our Letter of Transmittal and Basic Financial Statements and to recognize that the financial statements focus on past results compared to the City’s operating budget, which focuses on future goals and allocation of resources.

FINANCIAL HIGHLIGHTS

Key financial highlights for the fiscal year are outlined below . Details can be found in the Government‐Wide Financial Analysis the Financial Analysis of th e City’s Funds sections of this MD&A.

• The assets and deferred outflows of resources of the City exc eeded its liabilities and deferred inflows of resources at the close of the fiscal year e nded June 30, 2023 by $1.5 billion (net position). Of this amount, $241.6 million represents unrestricted net position, which may be used to meet the City’s ongoing obligations.

• The City’s total net position increased by $112.0 million com pared to the increase of $172.9 million in the prior fiscal year, a decrease of 35.2% in the current fiscal year when compared to the prior fiscal year. Of this amount, $89.8 million was generated by governmental activities and $22.2 million by business‐type activities.

• The City’s total outstanding long‐term debt was unchanged in the current fiscal year, primarily due to increases in landfill containment and claims liabilities, offset by scheduled debt service payments.

• The City’s net pension liabilities and net other post‐employment benefit (OPEB) liabilities increased by $128.8 million a nd $36.4 million, respectively. T he increase in the liabilities was primarily driven by negative investment earnings and signif icant interest costs that decreased the plans’ fiduciary net position during the measurement year.

• The City’s governmental funds r eported total fund balances of $967.4 million, an increase of $37.5 million, or 4.0% from the prior fiscal year.

• Total fund balance of the General Fund was $236.6 million, an increase of $39.3 million, or

19.9% from the prior fiscal yea r. Approximately $127.1 million of this amount, or 53.7%, represents unassigned fund balance which is available to meet the City’s current and future 6 needs. This unassigned fund balance has been designated for future one‐time expenditures, one‐time payments toward unfunded liabilities, and emergency funds, and is

69.2% of total General Fund expenditures for the fiscal year en ded June 30, 2023. This is an increase from 56.5% of total General Fund expenditures in the prior fiscal year.

• The City implemented Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription‐Based Information Technology Arrangements (SBITA), effective fiscal year ended June 30, 2023. See Note 12 in the Notes to Basic Financial Statements for details.

OVERVIEW OF THE FINANCIAL STATEMENTS

This Discussion and Analysis document is 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 st atements; (2) fund financial st atements; and (3) notes to the basic financial statements. This report also contains required and other supplementary 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, w ith the difference between 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 th e 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 pertai ning to uncollected taxes and expenses pertaining to earned, but unused, vacation and sick leave.

Both of the government‐wide financial statements distinguish fu nctions 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 safet y, public works, community deve lopment, and culture and recreation. The business‐type activities of the City include w ater, wastewater, and solid waste operations (enterprise funds).

7 The government‐wide financial statements include not only the City itself (known as the primary government) but also two legally separate entities for which th e 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 Ci ty and because of their financial relationship with the City. In addition, separate fi nancial statements for the Shoreline Community component unit are included within the City’s ACFR.

Fund Financial Statements

The fund financial statements are designed to report informatio n about groupings of related accounts, which are used to maintain control over resources tha t 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 categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the g overnment‐wide financial statem ents. However, unlike the government‐wide financial statements, governmental fund financi al 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 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 f or governmental funds with similar information presented for governmental activities in th e 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 governmen tal 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 City maintains several individual governmental funds organi zed according to their type (special revenue, debt service, and capital projects funds). I nformation 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 Capital Projects Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated prese ntation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

8 The City adopts an annual appropriated budget for most of its funds except 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‐ty pe activities in the government‐wide financial statements. The City uses enterp rise 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 City 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 fun ds 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.

Fiduciary 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. These are comprised of custodial funds, which are not required to be repo rted in pension (and other employee benefit) trust funds, investment trust funds, or private‐purpose trust funds and include custodial balances and activities of the City’s labor unions, f lexible benefits, and Center for Performing Arts. 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 the Basic Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government‐wide and fund financial statements.

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 statemen ts and schedules of the nonmajor governmental funds, internal service funds, and custodial funds. 9 GOVERNMENT‐WIDE FINANCIAL ANALYSIS

The City presents its financial statements under the reporting model required by accounting principles generally 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.

Analysis of Net Position

A condensed summary of the City’s net position for governmental and business‐type activities is as follows:

2023 2022 2023 2022 2023 2022
Assets:

Current and other assets $ 1,826,047 1,850,693 164,903 147,098 1,990,950 1,997,791 Capital assets 580,981 527,671 101,943 97,965 682,924 625,636 Total assets 2,407,028 2,378,364 266,846 245,063 2,673,874 2,623,427 Deferred outflows of resources:

Pension items 82,144 32,990 7,164 3,051 89,308 36,041 OPEB Items 28,388 9,332 344 341 28,732 9,673 Total deferred outflows of resources 110,532 42,322 7,508 3,392 118,040 45,714 Liabilities:

Current and other liabilities 75,282 77,398 6,245 5,343 81,527 82,741 Noncurrent liabilities 401,032 270,818 34,352 2 6,320 435,384 297,138 Total liabilities 476,314 348,216 40,597 31,663 516,911 379,879 Deferred inflows of resources:

Pension items 998 66,174 2 35 5,523.00 1,233 71,697 OPEB items 11,125 31,674 ‐ ‐ 11,125 31,674 Leases 746,114 781,366 ‐ ‐ 746,114 781,366 Total deferred inflows of resources 758,237 879 ,214 235 5,523 758,472 884,737 Net position:

Net investment in capital assets         555,678          502,73 7 92,486 87,218 648,164 589,955 Restricted         626,817          624,062                ‐                       ‐    626,817 624,062 Unrestricted         100,514            66,457 141,036 124,051 241,550 190,508 $  1,283,009 1,193,256 233,522 211,269 1,516,531 1,404,525 Condensed Statement of Net Position
(Dollars in Thousands)
TotalGovernmental Activities Business‐Type Activities
The largest portion (42.8%) of the City’s net position, or $648.2 million, reflects its investment in capital assets (e.g., land, build ings, 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, these assets are not available for future spending.  Although the City’s investment in its capital assets is reported net of rela ted 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 liquidate d for these liabilities.  An addi tional 41.3% of the City’s net position, or $626.8 million, represents resources that are subject to external restrictions on how 1 0
they may be used.  The last portion of the City’s net position, $241.6 million (15.9%), represents unrestricted net position.

The City’s total noncurrent liabilities increased by $138.2 million, compared with the prior fiscal year, primarily due to an increase of net pension liability of $128.8 million resulting from lower investment returns and higher interest cost on the total pension liability during the measurement year.

The City implemented GASB 96, Subscription‐Based Information Technology Arrangements (SBITAs) as of July 1, 2022, which resulted in an increase of SBITA assets of $1.1 million and SBITA liability of $1.1 million, having no effect on City’s beginning net position. At June 30, 2023, the City reported net SBITA assets of $1.5 million and a SBITA liability of $1.3 million.

Analysis of Statement of Activities

The changes in net position for governmental and business‐type activities are as follows:

2023 2022 2023 2022 2023 2022
Revenues:

Program Revenues:

Charges for services 79,004$ 85,260 82,418 78,687 161,422 163,947 Operating grants and contributions 15,452 20,073 4 546 15,456 20,619 Capital grants and contributions 35,641 94,132 10,987 9,465 46,628 103,597 General Revenues:

Property taxes 143,153 128,861 ‐ ‐ 143,153 128,861 Sales taxes 25,394 23,456 ‐ ‐ 25,394 23,456 Transient occupancy tax 9,522 4,437 ‐ ‐ 9,522 4,437 Utility users tax 9,672 8,717 ‐ ‐ 9,672 8,717 Nonregulatory franchise and business 11,789 11,784 ‐ ‐ 11,789 11,784 Intergovernmental revenue 270 281 ‐ ‐ 270 281 Investment income 23,594 (14,108) 783 (2,230) 24,377 (16,338) Total revenues 353,491 362,893 94,192 86,468 447,683 449,361 Expenses:

General government 57,508 50,952 ‐ ‐ 57,508 50,952 Public safety 87,425 62,335 ‐ ‐ 87,425 62,335 Public works 51,273 42,119 ‐ ‐ 51,273 42,119 Community development 21,303 15,726 ‐ ‐ 21,303 15,726 Culture and recreation 40,854 33,840 ‐ ‐ 40,854 33,840 Interest on long‐term debt 4,303 4,179 ‐ ‐ 4,303 4,179 Water ‐ ‐ 35,284 32,425 35,284 32,425 Wastewater ‐ ‐ 22,472 22,359 22,472 22,359 Solid Waste ‐ ‐ 15,255 12,543 15,255 12,543 Total expenses 262,666 209,151 73,011 67,327 335,677 276,478 Change in net position before transfers 90,825 153,742 21,181 19,14 1 112,006 172,883 Transfers, net (1,072) 47 1,072 (47) 00 Change in net position 89,753 153,789 22,253 19,094 112,006 172,883 Beginning net position 1,193,256 1,039,467 211,269 192,175 1,404,525 1,231,642 Ending net position 1,283,009$ 1,193,256 233,522 211,269 1,516,531 1,404,525 Total
(Dollars in Thousands)
Governmental Activities Business‐Type Activities

1 1

Charges for Services

22.3%
Operating Grants and
Contributions

4.4%
Capital Grants and
Contributions

10.1%
Property Taxes

40.5%
Sales Taxes

7.2%
Transient Occupancy Tax

2.7%
Utility Users Tax

2.7%
Nonregulatory Franchise
and Business

3.3%
Intergovernmental
Revenue

0.1%
Investment
Income

6.7%
Governmental Activities
Revenues by Source
General Government

21.9%
Public Safety

33.3%
Public Works

19.5%
Community Development

8.1%
Culture and Recreation

15.6%
Interest on
Long‐term Debt

1.6%
Governmental Activities
Expenses by Type
1 2
The City’s overall net position increased by $112.0 million during the current fiscal year.

Governmental activities increased the City’s net position by $89.8 million compared to $153.8 million for the prior fiscal year. The significant key factors are as follows:

• Total revenues decreased to $353.5 million, $9.4 million or 2 .6% lower than the prior fiscal year. Capital grants and contributions decreased by $58.5 mill ion, primarily related to a one‐time public benefit in‐lieu fee of $22.9 million and develo per fee of $25.6 million collected for the Google Landings Office Development Project in Fiscal Year 2021‐22. The total decreases in revenue in th e above‐mentioned areas are off set by a $37.7 million increase in investment income and a $14.3 million increase in property taxes. The investment income increased in Fiscal Year 2022‐23, mainly due to the lower unrealized loss on investments than that of the prior year and the higher interest earnings resulting from the higher interest rate. Property taxes increased over the prior fiscal year as the residential and commercial real estate markets continued to exp erience strong growth in assessed values.

• Total expenses increased to $262.7 million in the current fis cal year, a $53.5 million increase, or 25.6%, compared to the prior fiscal year. The inc rease is mainly due to increases in salaries and benefits that include pension and OPE B expenses related to adjustments required by GASB Statements Nos. 68 and 75. Salaries and benefits are higher in the current fiscal year as a result of an increase in authorized positions, Council approved cost of living adjustments, and merit increases for employees. Pension and OPEB expenses have increased primarily due to lower investment returns that h ave decreased the plans’ fiduciary net position during the measurement year, and significant interest costs, which have all resulted in higher pension and OPEB expenses.

Business‐type activities increased the City’s net position by $22.3 million. The significant key factors are as follows:

• Water net position increased by $6.1 million, primarily due to net operating income of $1.9 million and capital contributions of $3.3 million.

• Wastewater net position increased by $15.5 million, primarily due to net operating income of $7.8 million and developer capital contributions of $4.7 million.

• Solid waste net position increased by $0.7 million, primarily due to net operating income of $0.4 million.

1 3
FINANCIAL ANALYSIS OF THE CITY’S FUNDS

As noted earlier, the City uses fund accounting to ensure and d emonstrate compliance with finance‐related legal requirements.

Governmental Funds—The focus of the City’s governmental funds is to account for t he near‐ term inflows, outflows, and balances of resources that are available for spending. This information is useful in assessing the City’s financing require ments. 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 the City include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds.

At June 30, 2023, the City’s gove rnmental funds reported combin ed ending fund balances of $967.4 million, an increase of $37.5 million compared to the pr ior fiscal year. The components for the change are increases of $39.3 million in the General Fund, $10.3 million in the Shoreline Regional Park Community Fund, $0.6 million in the Housing Fund, and $6.9 million in the Capital Projects fund, offset by a decrease of $11.3 million in the Par k Land Dedication Capital Projects Fund and $8.3 million in Other Governmental Funds.

For the General Fund, revenues co ntinued to exceed expenditures due, in large part, to the growth in property taxes, sales taxes, other taxes, use of money and property, and grant funding received exceeding the increase in expenditures. The increase in the Shoreline Regional Park Community Fund is due primarily to growth in property taxes. The Housing Fund’s revenues and expenditures both decreased, resulting in a minimal increase of ending fund balance. Increases in the General Capital Projects Fund are due to increased inter fund transfers from other funds and a decrease in transfers out to other funds. The decreases in the Park Land Dedication Capital Projects Fund are primarily due to transfers out to other funds for capital projects exceeding revenues and transfers in from other funds.

Total fund balance is comprised of an unassigned fund balance of $127.1 million that is available for spending at the City’s discretion. The remainder of the fund balance is nonspendable ($2.0 million), restricted ( $696.5 million), committed ($135.2 million), and assigned ($6.5 million), none of which are available for new discretiona ry spending. The restricted fund balance virtually stayed at the same level as the prior fiscal year with only a $0.4 million decrease.

Total revenues for governmental funds were $350.8 million, representing a decrease of $17.4 million from the prior fiscal year. Revenue decreases are primarily due to decreases in developer fees and contributio ns ($56.0 million) and other reve nues ($8.0 million) offset by increases in property tax revenue ($14.3 million) and use of money and property ($35.9 million).

Total expenditures for governmental funds were $312.9 million, an increase of $33.6 million from the prior fiscal year. The increase was primarily due to $18.8 million in capital outlay expenditures for the 909 and 917 San Rafael Avenue Property Acq uisition and $12.9 million in capital outlay expenditures for the 87 East Evelyn Avenue Prope rty Acquisition. Revenues for governmental funds exceeded expenditures by $37.9 million. 1 4

The General Fund is used to accou nt for all revenues and expend itures necessary to carry out b a s i c g o v e r n m e n t a c t i v i t i e s o f t h e C i t y t h a t a r e n o t a c c o u n t e d for through other funds.

At June 30, 2023, the unassigned fund balance of $127.1 million was $33.7 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 $127.1 million represents 53.7% of total fund balance, 69.2% of fund expenditures of $183.6 million, while total fund balance represents 128.9% of that same amount.

The fund balance of the City’s General Fund increased by $39.3 million during the current fiscal year. Total General Fund revenues increased to $234.0 million, an increase of $20.8 million over the prior fiscal year. The increase is primarily due to increa ses in property taxes, sales taxes, other taxes, intergovernmental r evenues, lower unrealized losses on investments, and higher interest earnings. Property taxes increased primarily due to new development, chan ge in ownership, and 2.0% increase in assessed value as a result of t he positive California Consumer P r i ce I n d ex . O t h er L o ca l Ta xes i n cr ea s ed p r i m a r i l y d u e t o h i g her transient occupancy tax revenues as a result of two new hotels and overall increases in occupancy rates and daily room rates.

The Shoreline Regional Park Community Fund receives property ta xes on property within the Shoreline Community. The fund accounts for the revenues and ex penditures of the Shoreline Community.

Revenues were $64.4 million for the fiscal year ended June 30, 2023, a decrease of $4.8 million over the prior fiscal year. Revenues decreased primarily due t o a one‐time developer fee of $14.4 million collected for the Google Landings Office Developm ent Project in Fiscal Year 2021‐

22. The decrease is partially offset by higher property taxes and higher investment earnings.

Expenditures were $28.5 million compared to $26.8 million in th e prior fiscal year. Of this amount, $22.6 million was expended on general government and $4 .2 million on culture and recreation, which are only slightly higher when compared to the prior fiscal year.

In addition, $27.7 million was transferred out for capital improvement projects and debt service payments compared to $21.5 million in the prior fiscal year. The fund balance as of June 30, 2023 of $86.3 million is restricted for expenditures of the Shoreline Community.

The Housing Fund accounts for fees paid by developers to provid e for increasing and improving the supply of extremely low‐, very low‐, low‐, and moderate‐income housing (affordable housing).

Revenues were $10.6 million for the fiscal year ended June 30, 2023, a decrease of $12.4 million from the prior fiscal year. This was primarily due to one‐time developer fees related to the 1 5
Google Landings Office Development Project collected in the prior fiscal year. The fund balance of $177.5 million is restricted for future affordable housing projects.

The General Capital Projects Fund accounts for all general capital improvements not funded from proprietary funds.

Revenues were $3.0 million for the fiscal year ended June 30, 2023, an increase of $12.0 million from the prior fiscal year’s negative revenue, primarily due to lower unrealized losses that resulted from the impact of fair‐value adjustments to the City’s investments.

Expenditures were $85.7 million, which was $18.9 million more than the prior fiscal year. These funds were expended on capital outlay projects, including: 909 and 917 San Rafael Avenue property acquisition, 87 East Evelyn Avenue lot acquisition, and Rengstorff Park Aquatics Center Replacement Design. The fund ba lance of $279.0 million is available to fund approved capital projects.

The Park Land Dedication Capital Projects Fund accounts for rev enues derived from fees on residential subdivisions used for park and recreation projects.

Revenues were $17.7 million for the fiscal year ended June 30, 2023, a decrease of $1.1 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 fun d balance of $68.4 million is available for park and recreation projects.

Proprietary Funds—The City’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 $63.0 million, $62.6 million, and $15.4 million, respectively. The total increase in net position for the enterprise funds from the prior fiscal year is $22.3 million. The net operating income of the Water Fund ($1.9 million) and Solid Waste Fund ($0.4 million) decreased by $2.3 million and $2.0 million, respectively, when compared to the prior year. The Wastewater Fund’s net operating income ($7.8 million) increased by $2.5 mi llion over the prior year, the Water Fund’s and Solid Waste Fund’s decreases are due to higher payroll expenditures and higher cost of sales and services while revenues remained at th e same level as the prior year.

The Wastewater Fund’s increase is due to higher service charge revenue. Factors concerning the finances of the enterprise funds have also been addressed previ ously in the discussion of the City’s business‐type activities. The internal service funds ha ve an unrestricted net position of $36.4 million at June 30, 2023.

Fiduciary Funds—The City maintains fiduciary funds for fiduciary activities and assets held by the City in custodial capacity for t he benefit of agencies outside of the City or employees. As of June 30, 2023, the assets of the custodial funds totaled $0.5 million, comparable to the prior year.

1 6
GENERAL FUND BUDGETARY HIGHLIGHTS

General Fund differences between the original Fiscal Year 2022‐23 budget and the final amended budget resulted in an increase of $2.1 million in budgeted revenue (primarily related to Charges for Services and Other Revenues) and a $14.2 million increase i n expenditure appropriations.

Approximately $8.4 million of the adjustment in expenditure app ropriations is related to prior year encumbrances that carry forward at the beginning of the fiscal year as specified in the City Charter. An additional $2.5 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 paid by developers. An additional $1.9 m illion of appropriations was established for the payment of compensated absences. The balance of adjustments was made in February 2023 as part of the midyear budget update and were for various operational needs not anticipated at budget adoption and grants or reimbursements received during the fiscal year.

General Fund actual revenues are $40.5 million or 21.0% higher than the final amended budget for the fiscal year. The variance is primarily due to the following revenues coming in higher than budgeted amounts:
 Investment and lease interest income ‐ $18.7 million higher (primarily noncash mark‐to‐ market accounting adjustments for unrealized portfolio losses)  Property tax revenues ‐ $9.8 million higher
 Transient occupancy tax revenues ‐ $5.2 million higher  Sales tax revenues ‐ $3.4 million higher
 Intergovernmental revenue ‐ $2.0 million higher

Also contributing to the large variance is the City’s practice of analyzing and projecting revenues throughout the fiscal year, but not typically adjusting the ori ginal revenue budget to match projections. In addition, the City does not generally budget for uncertain or one‐time revenues, such as excess ERAF and reimbursements, including adjusting the budget after receiving the revenue. Both of these practices can result in budgeted amounts that are much lower than actual amounts.

Actual expenditures for the General Fund are $22.7 million lower than the final amended budget for the fiscal year. The variance is primarily due to continued salary and benefit savings incurred from vacant positions and budgeted amounts for limited‐period funding, one‐time programs, and non‐department costs being included in the final amended budget amounts, yet these types of costs are not typically fully expended within one year. It is anticipated that as the City ramps up recruitment of newly authorized positions and recently vacated existing positions, actual costs of salary and benefits will be more in line with budget amounts.

As a result of the higher than expected or budgeted revenues and expenditure budgets not being fully expended, the General Fund has experienced a positive budget vs. actual variance.

1 7
CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The City’s capital assets for its governmental and business‐type activities as of June 30, 2023 was $682.9 million (net of accumulated depreciation and amortization). Capital assets include land, leased assets, construction in progress, buildings, improvements other than buildings, machinery and equipment, subscription‐based IT arrangement (SBITA) assets, and infrastructure. The total net increase in the City’s capital assets as of June 30, 2023 is $57.3 million or 9.2%.

The change in capital assets, net of depr eci a tion, for th e governmental and business‐type activities are as follows:

2023
2022
(As restated*) 2023 2022 2023
2022
(As restated*)
Land $ 178,935 138,782 220 220 179,155 139,002 Leased assets ‐ Land ‐ 6 ,549 ‐ ‐ ‐ 6,549 Construction in progress 101,558 80,481 16,483 21,793 118,041 102,274 Buildings 188,468 188,468 8,748 8,748 197,216 197,216 Improvements other than buildings 240,460 227,032 186,900 169,890 427,360 396,922 Machinery and equipment 40,389 39,14 4 8,860 8,655 49,249 47,799 Traffic signals 16,035 15,513 ‐ ‐ 16,035 15,513 Streetlights 12,764 10,942 ‐ ‐ 12,764 10,942 Bridges and culverts 18,440 18,440 ‐ ‐ 18,440 18,440 Sidewalks, curbs and gutters 116,386 116,0 41 ‐ ‐ 116,386 116,041 Streets and roads 286,273 284,304 ‐ ‐ 286,273 284,304 Less accumulated depreciation (623,944) (598,025) (119,268) (111,341) (743,212) (709,366) Lease assets 3,826 ‐ ‐ ‐ 3,826 ‐ Less accumulated armortization (94) ‐ ‐ ‐ (94) ‐ SBITA assets 2,047 1,083 ‐ ‐ 2,047 1,083 Less accumulated armortization (562) ‐ ‐ ‐ (562) ‐ $ 580,981 528,754 101,943 97,965 682,924 626,719 * 2022 SBITA assets balances are restated due to the implementation of GASB Statement No. 96.

Governmental Activities Business‐Type Activities
Capital Assets
(Dollars in Thousands)
Total

Major capital asset activities during the current fiscal year included the following:

• Total capital assets increased by $57.3 million due to a net increase in assets of $91.8 million, offset by a $34.5 million net increases in accum ulated depreciation and amortization.

• Construction in progress increased by $15.8 million. Some of the major projects worked on and/or completed during the year included: 909 and 917 San Raf ael Avenue property acquisition, 87 East Evelyn Avenue lot acquisition, and Rengsto rff Park Aquatics Center Replacement Design.
1 8
Additional information about the City’s capital assets is discussed in Note 6 to the financial statements.

Debt Administration

As of June 30, 2023, the City had $163.9 million of outstanding noncurrent liabilities related to governmental activities and $13.6 million related to business‐type activities, for a total of $177.5 million. Noncurrent liabilities outstanding as of June 30, 2023, with a comparison to prior year and the net change, are as follows:

2023 2022 (As restated *) Net Change
Revenue bonds $ 89,885 91, 252 (1,367) Compensated absences 11,258 11,260 (2) Landfill containment 46,297 43,268 3,029 Claims liabilities 11,343 9,297 2,046 Lease liabilities 3,817 6,499 (2,682) SBITA liabilties 1,308 1,083 225 Total governmental activities debt 163,908 162,659 1,249 Business‐type activities 13,648 14,916 (1,268) Total $ 177,556 177,575 (19) * 2022 SBITA assets balances are restated due to the implementation of GASB Statement No. 96.

Debt Outstanding
(Dollars in Thousands)

The increases to noncurrent liabilities were primarily due to the increase in Landfill Containment and claims liabilities and the addition of SBITA liabilities in the current fiscal year upon the implementation of GASB 96 offset by the reduction of lease liabilities and scheduled debt service payments.

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, 2023 and has maintai ned its underlying “AAA” issuer credit rating from Standard & Poor’s since July 2014.

Additional information regarding the City’s noncurrent liabilit ies is discussed in Note 7 to the financial statements.

1 9
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES

• The City’s revenues performed better than projected as the re covery from the COVID‐19 pandemic continued. Except for the Business License and Utility Users Tax, major revenues are projected to increase and exceed pre‐pandemic levels.

• Overall, property taxes for the City are expected to increase in the upcoming fiscal year based on increases 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.

• Sales tax revenue is expected to be about the same as the cur rent fiscal year. However, a moderate increase is projected for future years.

• Business License revenue is projected to experience a 14.9% d ecline compared to the current fiscal year due to known and potential layoffs. Utilit y Users Tax is projected to be slightly lower than Fiscal Year 2022‐23, primarily from lower collections for energy services.

Transient Occupancy Tax is projected to be essentially the same as the current year because business travel has stabilized and is expected to remain stable in the near future.

• Average increases in potable water, wastewater, and solid was te rates of 8.0%, 6.0%, and

7.0%, respectively, have been a dopted for Fiscal Year 2023‐24 t o recover the costs of providing those services. All of the rate increases were effective starting July 1, 2023.

All of these factors were considered in preparing the City’s budget for Fiscal Year 2023‐24.

Although the local economy has stabilized from the past couple of years, current developments around the world and continued high inflation contribute to inc reased uncertainty about the future of the economy. The City remains cautiously optimistic about future fiscal growth and continues to promote sound fiscal practices and budget discipli ne that allows the City to be prepared for fiscal challenges that may arise in the upcoming years.

REQUESTS FOR INFORMATION

These financial statements are intended to provide residents, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions conc erning 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 Stre et, P.O. Box 7540, Mountain View, California, 94039‐7540, or [email protected].

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CITY OF MOUNTAIN VIEW
Statement of Net Position
June 30, 2023
(Dollars in Thousands)
Business‐
Governmental type
Activities Activities Total
Assets:

Cash and investments 879,603$ 94,040 973,643 Restricted cash and investments 71,047 3,120 74,167 Receivables:

Accounts 3,939 14,235 18,174 Taxes 6,903 ‐ 6,903 Interest 4,665 801 5,466 Loans and notes 112,130 ‐ 112,130 Leases 777,815 ‐ 777,815 Internal balances (52,707) 52,707 ‐ Inventory 742 ‐ 742 Deposits and prepaid items 21,910 ‐ 21,910 Capital assets:

Nondepreciable 280,493 16,703 297,196 Depreciable, net of accumulated depreciation 300,488 85,240 385,728 Total assets 2,407,028 266,846 2,673,874 Deferred outflows of resources:

Pension items 82,144 7,164 89,308 OPEB items 28,388 344 28,732 Total deferred outflows of resources 110,532 7,508 118,040 Liabilities:

Accounts payable and accrued liabilities 26,648 4,280 30,928 Interest payable 1,703 ‐ 1,703 Refundable deposits 7,409 459 7,868 Unearned revenue 30,700 ‐ 30,700 Noncurrent and other liabilities:

Due within one year:

Long‐term liabilities 8,822 1,506 10,328 Due in more than one year:

Long‐term liabilities 155,086 12,142 167,228 Net pension liability 235,680 21,866 257,546 Net OPEB liability 10,266 344 10,610

Total liabilities 476,314 40,597 516,911 Deferred inflows of resources:

Pension items 998 235 1,233 OPEB items 11,125 ‐ 11,125 Leases 746,114 ‐ 746,114 Total deferred inflows of resources 758,237 235 758,472 Net position:

Net investment in capital assets 555,678 92,486 648,164 Restricted for:

Capital projects 285,074 ‐ 285,074 Debt service 45 ‐ 45 Low and moderate income housing 190,280 ‐ 190,280 Shoreline Regional Park Community 85,380 ‐ 85,380 Grants and regulations 66,038 ‐ 66,038 Unrestricted 100,514 141,036 241,550 Total net position 1,283,009$ 233,522 1,516,531 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
3 (Dollars in Thousands)
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Function/Program Activities:

Primary government:

Governmental activities:

General government 57,508 $ 54,643 10,447 ‐ Public safety 87,425 1,038 321 ‐ Public works 51,273 2,333 4,066 6,959 Community development 21,303 13,149 430 12,447 Culture and recreation 40,854 7,841 188 16,235 Interest on long‐term debt 4,303 ‐ ‐ ‐ Total governmental activities 262,666 79,004 15,452 35,641 Business‐type activities:

Water 35,284 36,760 3 3,309 Wastewater 22,472 29,965 1 7,678 Solid Waste 15,255 15,693 ‐ ‐ Total business‐type activities 73,011 82,418 4 10,987 Total primary government 335,677 $ 161,422 15,456 46,628

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 yea
r
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
7,582 ‐ 7,582 (86,066) ‐ (86,066) (37,915) ‐ (37,915) 4,723 ‐ 4,723 (16,590) ‐ (16,590) (4,303) ‐ (4,303) (132,569) ‐ (132,569) ‐ 4,788 4,788 ‐ 15,172 15,172 ‐ 438 438 ‐ 20,398 20,398 (132,569) 20,398 (112,171) 143,153 ‐ 143,153 25,394 ‐ 25,394 9,522 ‐ 9,522 9,672 ‐ 9,672 11,789 ‐ 11,789 270 ‐ 270 23,594 783 24,377 (1,072) 1,072 ‐ 222,322 1,855 224,177 89,753 22,253 112,006 1,193,256 211,269 1,404,525 1,283,009$ 233,522 1,516,531 See accompanying notes to the financial statements. 23
CITY OF MOUNTAIN VIEW
Governmental Funds
Balance Sheet
June 30, 2023
(Dollars in Thousands)
Shoreline
Regional
Park
General Community Housing
Cash and investments 228,016 $ 90,092 100,550 Restricted cash and investments ‐ 948 ‐ Receivables:

Accounts 1,477 116 9 Taxes 6,903 ‐ ‐ Interest 1,485 969 568 Loans and notes 2,377 ‐ 82,270 Leases 777,815 ‐ ‐ Inventory 667 ‐ ‐ Deposits and prepaid items 4,293 ‐ ‐ Total assets 1,023,033 $ 92,125 $ 183,397 $ Liabilities, deferred inflows of resources
and fund balances:

Accounts payable and accrued liabilitie
s 9,180$ 5,629 12 Refundable deposits 6,035 52 919 Unearned revenue 25,124 116 4,984 Advances from other funds ‐ ‐ ‐ Total liabilities 40,339 5,797 5,915 Leases 746,114 ‐ ‐ Nonspendable 1,960 ‐ ‐ Restricted 445 86,328 177,482 Committed 100,554 ‐ ‐ Assigned 6,479 ‐ ‐ Unassigned 127,142 ‐ ‐ Total fund balances 236,580 86,328 177,482 Total liabilities, deferred inflows of resources
and fund balances 1,023,033$ 92,125 183,397 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
278,899 50,977 85,882 834,416 63,287 ‐ 5,987 70,222

‐ ‐ 652 2,254 ‐ ‐ ‐ 6,903 ‐ 547 822 4,391 ‐ ‐ 27,483 112,130 ‐ ‐ ‐ 777,815 ‐ ‐ 75 742 ‐ 17,000 271 21,564 342,186$ 68,524 $ 121,172 1,830,437 10,493 ‐ 825 26,139 ‐ 53 350 7,409 ‐ 50 426 30,700 52,707 ‐ ‐ 52,707 63,200 103 1,601 116,955 ‐ ‐ ‐ 746,114 ‐ ‐ 75 2,035 278,986 68,421 84,862 696,524 ‐ ‐ 34,634 135,188 ‐ ‐ ‐ 6,479 ‐ ‐ ‐ 127,142
278,986 68,421 119,571 967,368 342,186 68,524 121,172 1,830,437 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, 2023
(Dollars in Thousands)
Fund balances ‐ total governmental funds 967,368$
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets including leased and SBITA assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 580,981 Internal service funds are used to charge the costs of management of 36,375
Interest payable on long‐term debt does not require the use of current (1,703)
Deferred outflows and inflows of resources for pension and OPEB Deferred outflows of resources 110,532
Deferred inflows of resources (12,123)
Noncurrent liabilities, including bonds payable, are not due Net pension liability (235,680)$
Net OPEB liability (10,266)
Bonds and loans payable (89,885)
Lease liabilities (3,817)
SBITA liabilities (1,308)
Landfill containment (46,297)
Compensated absences (11,168) (398,421)
Net position of governmental activities 1,283,009 $
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, 2023
(Dollars in Thousands)
Shoreline
Regional
Park
General Communit
y Housing
Revenues:

Property taxes 79,030 $ 62,947 ‐ Sales taxes 25,394 ‐ ‐ Other taxes 25,189 ‐ ‐ Licenses, permits and fees 11,545 ‐ ‐ Fines and forfeitures 506 ‐ ‐ Use of money and property 47,528 1,278 850 Intergovernmental 10,918 ‐ ‐ Charges for services 26,362 85 123 Developer fees and contributions 1,080 ‐ 9,554 Other 6,442 52 28 Total revenues 233,994 64,362 10,555 Expenditures:

Current:

General government 32,834 22,556 ‐ Public safety 78,233 111 ‐ Public works 21,999 1,234 ‐ Community development 16,528 399 1,390 Culture and recreation 25,081 4,169 ‐ Capital outlay 8,272 ‐ ‐ Debt service:

Principal 604 ‐ 41 Interest and fiscal charges 17 ‐ 150 Total expenditures 183,568 28,469 1,581 Excess (deficiency) of revenues
over (under) expenditures 50,426 35,893 8,974 Other financing sources (uses):

Issuance of bonds ‐                             ‐                             ‐ Payment to bonds refunding escrow ‐                             ‐                             ‐ Lease and SBITA financing 4,790                         ‐                             ‐ Transfers in 3,994                         2,061                         2,304 Transfers out (19,915)                      (27,688)
(10,661)
Total other financing sources (uses) (11,131)                      (25,627)                      (8,357) Net change in fund balances 39,295                       10,266                       617 Fund balances, beginning of year,
as previously reported 197,285                     76,062                        176,865 Cumulative effect of change in accounting principles ‐                             ‐                              ‐ Fund balances, beginning of year, as restated 197,285                     76,062                        176,865 Fund balances, end of year 236,580$                   86,328                        177,482 See accompanying notes to the financial statements. 28
Park Land
General Dedication Other Total
Capital Capital Governmental Governmental
Projects Projects Funds Funds
‐                             ‐                              1,176                          143,153 ‐                             ‐                             ‐                             25,394 ‐                             ‐                             4,119                         29,308 ‐                             ‐                             290                             11,835 ‐                             ‐                             ‐                             506 1,898                         1,503                         1,215                         54,272 277                             ‐                             5,275                         16,470 ‐                             ‐                             6,294                         32,864 ‐                             16,235                       2,690                         29,559 820                             ‐                             145                             7,487 2,995                         17,738                       21,204                       350,848 ‐                             ‐                             174                             55,564 ‐                             ‐                             212                             78,556 ‐                             ‐                             106                             23,339 ‐                             ‐                             2,988                         21,305 ‐                             ‐                             3,969                         33,219 85,580                       ‐                             90                               93,942 143                             ‐                             1,615                         2,403 10                               ‐                             4,422                         4,599 85,733                       ‐                             13,576                       312,927 (82,738)                      17,738                       7,628                         37,921

‐ ‐ 21,565 21,565 ‐ ‐ (21,100) (21,100) ‐ ‐ ‐ 4,790 104,454 1,631 16,716 131,160 (14,827) (30,637) (33,107) (136,835) 89,627 (29,006) (15,926) (420) 6,889 (11,268) (8,298) 37,501

272,097 79,689 127,869 929,867 ‐ ‐ ‐ ‐ 272,097 79,689 127,869 929,867 278,986 68,421 119,571 967,368 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, 2023
(Dollars in Thousands)
Net change in fund balances ‐ total governmental funds 37,501 $ 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 thei r
estimated useful lives and reported as depreciation expense.

Capital assets additions 80,165$
Donated assets received 1,878
Capital assets retirements (128)
Depreciation of capital assets (27,273) 54,642
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. 34,912 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
. (36,844)
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 and SBITA assets addition 4,790
Lease and SBITA liabilities addition (4,790)
Amortization of lease and SBITA assets (656)
Lease assets retirement due to modification (6,549)
Lease liabilities retirement due to modificatio
n 6,459 (746)
Issuance of long‐term debt and refinancing are reported as other financing sources/uses in governmental funds and thus contribute to the change in fund balances. However, these activities change long‐term liabilities in the statement of net position and do not affect the statement of activities .

Issuance of bonds (21,565)
Payment to bonds refunding escrow 21,100 (465)
The repayment of the principal of long‐term debt and lease and SBITA liabilities consume the current financial resources of governmental funds. 2,403 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 79
Change in landfill containment (3,029)
Change in compensated absences (54) (2,787) 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
. 1,137
Change in net position of governmental activities 89,753 $ See accompanying notes to the financial statements. 31

32 This page intentionally left blank

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, 2023
(Dollars in Thousands)

Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:

Property taxes 69,232 $ 69,232 79,030 9,798 Sales taxes 21,960 21,960 25,394 3,434 Other taxes 19,124 19,124 25,189 6,065 Licenses, permits and fees 14,284 14,284 11,545 (2,739) Fines and forfeitures 264 264 506 242 Use of money and propert
y 28,876 28,876 47,528 18,652 Intergovernmental 8,903 8,904 10,918 2,014 Charges for services 23,645 24,710 26,362 1,652 Developer fees and contributions 600 600 1,080 480 Other 4,456 5,506 6,442 936 Total revenues 191,344 193,460 233,994 40,534 Expenditures:

Current:

General government:

City council 457 470 305 165 City clerk 1,323 1,351 1,093 258 City attorney 2,868 3,173 2,458 715 City manager 9,492 12,379 7,491 4,888 Human services 4,007 6,097 5,086 1,011 Information technology 8,228 8,602 6,108 2,494 Finance and administrative services 12,735 12,392 10,293 2,099 Public safety:

Fire 31,697 32,130 31,728 402 Police 48,731 49,315 46,505 2,810 Public works 25,012 26,244 21,999 4,245 Community development 16,668 20,203 16,528 3,675 Culture and recreation:

Community services 20,653                    21,103                  18,455                    2,648 Library services 7,861                      8,185                    6,626                      1,559 Capital outlay 2,386                      4,632                    8,272                      (3,640) Debt service
Principal ‐                           ‐                        604                         (604) Interest and fiscal charges ‐                           ‐                        17                            (17) Total expenditures 192,118                 206,276               183,568                 22,708 Excess (deficiency) of revenues
over (under) expenditures (774)                       (12,816)                50,426                    63,242 Other financing sources (uses):

Lease and SBITA financing ‐ ‐ 4,790 4,790 Transfers in 2,288 2,288 3,994 1,706 Transfers out (15,063) (20,936) (19,915) 1,021 Total other financing sources (uses) (12,775) (18,648) (11,131) 7,517 Net change in fund balance (13,549)$ (31,464) 39,295 70,759 Fund balance, beginning of year, as restated 197,285
Fund balance, end of year 236,580$
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, 2023
(Dollars in Thousands)

Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:

Property taxes 56,777 $ 56,777 62,947 6,170 Use of money and propert
y 1,821 1,821 1,278 (543) Charges for services 55 55 85 30 Other 40 40 52 12 Total revenues 58,693 58,693 64,362 5,669 Expenditures:

Current:

General government:

City attorney 10 24 ‐ 24 Finance and administrative services 22,045 22,592 22,556 36 Public safety:

Fire 173 187 71 116 Police 40 40 40 ‐ Public works 1,529 1,560 1,234 326 Community development 715 767 399 368 Culture and recreation:

Community services 4,802 4,936 4,169 767 Capital outlay 59 64 ‐ 64 Total expenditures 29,373 30,170 28,469 1,701 Excess of revenues over expenditures 29,320 28,523 35,893 7,370 Other financing sources (uses):

Transfers in ‐ ‐ 2,061 2,061 Transfers out (19,511) (28,673) (27,688) 985 Total other financing sources (uses) (19,511) (28,673) (25,627) 3,046 Net change in fund balance 9,809$ (150) 10,266 10,416 Fund balance, beginning of year,
as previously reported 76,062
Prior period adjustments ‐
Fund balance, beginning of year 76,062
Fund balance, end of year 86,328$
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, 2023
(Dollars in Thousands)

Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:

Use of money and propert
y 1,139$ 1,139 850 (289) Intergovernmental ‐ ‐ ‐ ‐ Charges for services 150 150 123 (27) Developer fees and contributions ‐ ‐ 9,554 9,554 Other ‐ ‐ 28 28 Total revenues 1,289 1,289 10,555 9,266 Expenditures:

Current:

General government:

Finance and administrative services 300 300 ‐ 300 Community development 18,187 75,984 1,390 74,594 Debt service:

Principal ‐ ‐ 41 (41) Interest and fiscal charges ‐ ‐ 150 (150) Total expenditures 18,487 76,284 1,581 74,703 Excess (deficiency) of revenues
over (under) expenditures (17,198) (74,995) 8,974 83,969 Other financing uses:

Transfers in 646 646 2,304 1,658 Transfers out (7) (7) (10,661) (10,654) Total other financing uses 639 639 (8,357) (8,996) Net change in fund balance (16,559)$ (74,356) 617 74,973 Fund balance, beginning of year 176,865
Fund balance, end of year 177,482$
See accompanying notes to the financial statements. 35
CITY OF MOUNTAIN VIEW
Proprietary Funds
Statement of Net Position
June 30, 2023
(Dollars in Thousands)
Water Wastewater Solid Waste
Assets:

Current assets:

Cash and investments 38,247 $ 39,057 16,736 Restricted cash and investments 2 3,118 ‐ Receivables:

Accounts 5,653 4,679 3,903 Interest 378 331 92 Due from other funds ‐ ‐ ‐ Deposits and prepaid items ‐ ‐ ‐ Total current assets 44,280 47,185 20,731 Advance to other funds 29,409 22,996 302 Capital assets:

Nondepreciable 9,502 6,345 856 Depreciable, net of accumulated depreciation 49,083 33,783 2,374 Total noncurrent assets 87,994 63,124 3,532 Total assets 132,274 110,309 24,263 Pension items 3,579 2,091 1,494 OPEB items 97 88 159 Total deferred outflows of resources 3,676 2,179 1,653 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 2,143 61 2,076 Due to other funds ‐ ‐ ‐ Refundable deposits 459 ‐ ‐ Unearned revenue ‐ ‐ ‐ Current portion of accrued compensated absences 76 59 42 Current portion of accrued self‐insurance costs ‐ ‐ ‐ Current portion of revenue bonds 480 ‐ ‐ Current portion of loans payable 250 599 ‐ Total current liabilities 3,408 719 2,118 Noncurrent liabilities:

Noncurrent portion of accrued compensated absences 404 253 239

Noncurrent portion of accrued self‐insurance costs ‐ ‐ ‐ Noncurrent portion of revenue bonds 2,755 ‐ ‐ Noncurrent portion of loans payable 1,250 7,241 ‐ Net pension liability 11,031 6,133 4,702 Net OPEB liability 97 88 159 Total liabilities 18,945 14,434 7,218 Pension items 120 63 52 Net position:

Net investment in capital assets 53,850 35,406 3,230 Restricted ‐ ‐ ‐ Unrestricted 63,035 62,585 15,416 Total net position 116,885$ 97,991 18,646 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
94,040                               45,187
3,120                                 825
14,235                               1,685
801                                     274
‐                                     1,287
‐                                     346
112,196                            49,604
52,707                               ‐
16,703                               ‐
85,240                               ‐
154,650                            ‐
266,846                            49,604
7,164                                 ‐
344                                     ‐
7,508                                 ‐
4,280                                 509
‐                                     1,287
459                                     ‐
‐                                     ‐
177                                     25
‐                                     3,467
480                                     ‐
849                                     ‐
6,245                                 5,288
896                                     65
‐                                     7,876
2,755                                 ‐
8,491                                 ‐
21,866                               ‐
344                                     ‐
40,597                               13,229
235                                     ‐
92,486                               ‐
‐                                     ‐
141,036                            36,375
233,522
36,375
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, 2023
(Dollars in Thousands)
Water Wastewater Solid Waste
Operating revenues:

Charges for services 34,890$ 29,129 15,477 Other 1,870 836 216 Total operating revenues 36,760 29,965 15,693 Operating expenses:

Salaries and related expenses 7,464 4,255 3,076 Insurance claims and premiums ‐ ‐ ‐ Cost of sales and services 18,892 11,418 9,422 General and administrative 3,767 3,101 2,356 Depreciation 4,734 3,425 401 Total operating expenses 34,857 22,199 15,255 Operating income (loss) 1,903 7,766 438 Nonoperating revenues (expenses):

Investment income 489 142 152 Interest expense (214) (272) ‐ Intergovernmental revenue 3 1 ‐ Loss on disposal of capital assets (213) (1) ‐ Total nonoperating revenues (expenses) 65 (130) 152 Income (loss) before contributions and transfers 1,968 7,636 590 Capital contributions ‐ developer fees 1,741 4,652 ‐ Capital contributions ‐ other 1,568 3,026 ‐ Transfers in 1,256 697 238 Transfers out (438) (503) (178) Change in net position 6,095 15,508 650 Net position, beginning of year,
as previously reported 110,790 82,483 17,996 Change in accounting principles ‐ ‐ ‐ Net position, beginning of year 110,790 82,483 17,996 Net position, end of year 116,885$ 97,991 18,646

Business‐type Activities ‐ Enterprise Funds
See accompanying notes to the financial statements. 38

Business‐type Governmental
Activities ‐ Activities ‐
Enterprise Funds Internal
Total Service Funds
79,496                             12,769
2,922                                1,937
82,418                             14,706
14,795                             7,127
‐                                    7,550
39,732                             ‐
9,224                                4,260
8,560                                ‐
72,311                             18,937
10,107                             (4,231)
783                                   765
(486)                                  ‐
4                                       ‐
(214)                                  ‐
87                                     765
10,194                             (3,466)
6,393                                ‐
4,594                                ‐
2,191                                4,868
(1,119)                              (265)
22,253                             1,137
211,269                           35,238
‐                                    ‐
211,269                           35,238
233,522                           36,375
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, 2023
(Dollars in Thousands)
Water Wastewater Solid Waste
Cash flows from operating activities:

Cash receipts from customers 35,633 $               29,086                  15,838 Cash paid to suppliers for goods and services (22,405)                 (14,498)                 (11,165) Cash paid to employees for services (7,470)                   (4,314)                   (3,061) Claims paid ‐                             ‐                             ‐ Other receipts 1,851                    836                        216 Net cash provided by (used in) operating activities 7,609                    11,110                  1,828 Cash flows from noncapital financing activities
Transfers in 1,256                    697                        238 Transfers out (438)                      (503)                      (178) Advances received from other funds ‐                             ‐                             410 Advances paid to other funds (6,857)                   (3,060)                   ‐ Intergovernmental revenue received 3                            1                            ‐ Net cash provided by (used in) noncapital
financing activities (6,036)                   (2,865)                   470 Cash flows from capital and related financing activities:

Cash receipt from direct financing arrangement ‐ ‐ ‐ Principal payment on capital debt (460) ‐ ‐ Principal payment on loan payable (300) ‐ ‐ Principal payment on direct financing arrangement ‐ (579) ‐ Interest paid (164) (272) ‐ Acquisition of capital assets (3,792) (3,771) (595) Contributions from developers 1,741 4,652 ‐ Net cash provided by (used in) capital and
related financing activities (2,975) 30 (595) Cash flows from investing activities:

Interest received (loss) 354 (10) 121 Net increase (decrease) in cash and cash equivalents (1,048) 8,265 1,824 Cash and cash equivalents, beginning of year 39,297 33,910 14,912 Cash and cash equivalents, end of year 38,249$ 42,175 16,736 Reconciliation of cash and cash equivalents:

Cash and investments 38,247$ 39,057 16,736

Restricted cash and investments 2 3,118 ‐ Total cash and cash equivalents 38,249$ 42,175 16,736 Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities:

Operating income (loss) 1,903$ 7,766 438 Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Depreciation 4,734 3,425 401 Changes in assets and liabilities:

Accounts receivable 743                       (43)                        361 Deposits and prepaid items ‐                            ‐                            ‐ Accounts payable and accrued liabilities 254                       21                         613 Refundable deposits (19)                        ‐                            ‐ Accrued compensated absences 29                         (38)                        30 Accrued self‐insurance costs ‐                            ‐                            ‐ Deferred outflows of resources ‐ pension items (2,039)                  (1,186)                  (888) Increase (decrease) in deferred inflows
Deferred inflows of resources ‐ pension items (2,576)                  (1,650)                  (1,062) Net pension liabilit
y 4,580                   2,815                    1,935 Deferred outflows of resources ‐ OPEB items
Deferred outflows of resources ‐ OPEB items 69                          (16)                         (56) Net OPEB liability (69)                         16                          56 Net cash provided by (used in) operating activities 7,609 $                 11,110                  1,828 Supplemental disclosure of noncash capital and related
financing activities:

Receipt of capital assets contribution
s 1,568$ 3,026 ‐
Business‐type Activities ‐ Enterprise Funds
See accompanying notes to the financial statements. 40

Business‐type Governmental
Activities ‐ Activities ‐
Enterprise Funds Internal
Total Service Funds
80,557                             13,986
(48,068)                            (8,242)
(14,845)                            (7,183)
‐                                        (1,532)
2,903                               ‐
20,547                             (2,971)
2,191                               4,868
(1,119)                              (265)
410                                   ‐
(9,917)                              ‐
4                                       ‐
(8,431)                              4,603

‐                                        ‐
(460)                                 ‐
(300)                                 ‐
(579)                                 ‐
(436)                                 ‐
(8,158)                              ‐
6,393                               ‐

(3,540)                              ‐
465                                   702
9,041                               2,334
88,119                             43,678
97,160                             46,012
94,040                             45,187
3,120                               825
97,160                             46,012
10,107                             (4,231)
8,560                               ‐
1,061                               (720)
‐                                        (346)
888                                   336
(19)                                    ‐
21                                     (56)
‐
2,046
(4,113)                              ‐
(5,288)                              ‐
9,330                               ‐
(3)                                      ‐
3                                       ‐
20,547                             (2,971)
4,594                               ‐
See accompanying notes to the financial statements. 41
CITY OF MOUNTAIN VIEW
Custodial Funds
Statement of Fiduciary Net Position
June 30, 2023
(Dollars in Thousands)
Assets:

Cash and investments 4 $
Restricted cash and investments 535
Due from other funds 10
Total assets 549
Liabilities:

Due to other funds 10
Restricted for others 539 $
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, 2023
(Dollars in Thousands)
Additions:

Fees and others collected 668 $
Distribution to others 570
Change in net position 98
441
539$
Deductions:

Net position, beginning of year
Net position, end of year
See accompanying notes to the financial statements. 43

44 This page intentionally left blank
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

45 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Mountain View (City) was incorporated in 1902 and i s a charter city, having had its charter granted by the State of Califor nia 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, and 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 co mponent units, which are described below, are all blended.

The Mountain View Shoreline Regional Park Community (Shoreline Community) is a separate 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 funds. Separate financial statements for the Shoreline Community are also included as a c omponent 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 to the City, and a financial benefit/burden relationship exists between the City and the Fin ancing Authority. Its financial activities have been blended in the accompanying financial stat ements 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 statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental 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.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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 statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have bee n 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 financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct 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 particular function. Program 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 cont ributions 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 category ‐ governmental, proprietary, and fiduciary ‐ are prese nted. 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 combin ed 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 governm ental 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, 2023

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 all 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 t he operation, maintenance and capital outlay required to supply, distribute a nd meter water. The City has agreements with the San Francisco Public Utilities Commission and 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 services. The City has an agreement with the City of Palo Alto to purchase treatment capa city 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 out lay 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 Transfer (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 provi ded 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, 2023

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

The government‐wide, proprietary fund, and fiduciary fund finan cial 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 availabl e if the revenues are collecte d within sixty days after fiscal year end. A ninety‐day availability period is used for sales ta xes in order to include the State of California (State) final distribution of sales taxes revenue fo r 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 i n 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, gran ts, entitlements and donations.

On the accrual basis, revenues from property taxes are recogniz ed in the fiscal year for which the taxes are levied. Revenues from grants, entitlements and do nations 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 revenue. 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 e ligibility 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 finance 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, 2023

49 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Certain indirect costs are included in program expenses reporte d 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) capital 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 principal 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 n ew customers to the system.

Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital 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). Inventori es of the General Fund consist of expendable supplies held for consu mption. 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 amount 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, 2023

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 than real estate, land and buildings and are secured by liens on the property owner. Prop erty 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 proprietar y 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 app lies 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 B alance Sheets report a separate section for deferred inflows of resources. This separate finan cial 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 OPEB liability, deferred outflows/inflows of resources related to pension and OPEB, 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 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 in the period in which the contributions are due. Investments a re 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, 2023

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 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) related note disclosure.

Implementation of this statement did not have a significant imp act on the City’s financial statements for the fiscal year ended 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, m aintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange‐like transaction.

Implementation of this statement did not have a significant imp act on the City’s financial statements for the fiscal year ended 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 (SBI TAs) 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 not e disclosures regarding a SBITA. The requirements of this statement are effective for th e City’s fiscal year ended June 30, 2023. Implementation of this statement has a significant impact on the City’s financial statements and footnote disclosure for the year ended June 30, 2023. See Note 12.

 In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (a) practice issues that been identified during implementation and application of certain GASB Statements and (b) accounting and financial reporting for financial guarantees. T he requirements related to leases, public‐private partnerships (PPPs), and SBITAs are effective for the City’s fiscal year ended June 30, 2023. Implementation of these requirements did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2023.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

52 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The City is currently analyzing its accounting practices to ide ntify the potential impact on the financial statements for the GASB statements as follows:

 In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 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 this statement is to better meet the information needs of finan cial 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 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 United States of America (GAAP) requires manage ment 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 financial statements and the reported amounts of revenues and expenditures/expenses during the reporting peri od. Actual results could differ from those estimates.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

53 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 Assessments Fund.

No annual budgets are adopted for the Debt Service Funds. Repayment 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 time 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 reappropriated 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 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 portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration. Encumbrances outstanding at fiscal year‐end are au tomatically 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, 2023

54 NOTE 3 – CASH AND INVESTMENTS

The City pools cash from all sources and all funds, except restricted 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 se parate 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 fisca l year end and the effects of these 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 classifi ed 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, 2023. Cash and investments are as follows (dollars in thousands):

Governmental Business‐Type Fiduciary
Activities Activities Funds Total
Cash and investments 879,603$ 94,040 4 973,647 Restricted cash and investments 71,047 3,120 535 74,702 Total cash and investments 950,650$ 97,160 539 1,048,349

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

55 NOTE 3 – CASH AND INVESTMENTS (Continued)

Cash and investments as of June 30, 2023 consist of the following (dollars in thousands):

Cash on hand 14$
Deposits with financial institutions 7,216
Investments 1,041,119
Total cash and investments 1,048,349$

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 issu ers 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 Inv estment 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 Cod e 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
Maturity
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 policy requires a minimum of 25 percent of the total portfolio to be invested in U.S. Treasury Obligations. The policy does not specify a maximum for this type of investment. (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, 2023

56 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 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

E. Interest Rate Risk

Interest rate risk is the risk t hat changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of a n 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 ri sk is by purchasing a combinati on 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 meas ure 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, 2023
57 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 52,916$        N/A
U.S. Treasury Obligations 528,736     2.17
U.S. Agency Securities 239,409     1.36
Medium‐Term Notes 74,182     2.77
Supranational Securities 42,038     3.00
Municipal Bonds ‐ Shoreline Regional Park Community
2018 Revenue Bonds 3,064    3.22
Money Market Mutual Funds 31,066     N/A
Held by Bond Trustee:

Money Market Mutual Funds 24,706     N/A
U.S. Agency Securities 6,695    *
U.S. Treasury Obligations 38,307     **
Total investments 1,041,119$
* Maturity date:  12/28/2023.
** Maturity date:  $20,998 on 9/30/2023 and $17,309 on 3/15/2024.

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 duratio n of its investment portfolio to within 15.0 percent of the modified duration of a benchmark portfolio as defined in the Investment Policy. As of June 30, 2023, the allowed modified duration ranged from 1.54 to 2.08 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 2018 Revenue Bonds. The balance as of June 30, 2023, 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 is 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 $178.4 billion as of June 30, 2023. Of that amount, 97.22 percent was invested in nonderivative financial products and 2.78 percent in structured notes and asset backed securities. As of June 30, 2023, LAIF had an average maturity of 260 days.

Mutual Money Market Funds investments are available for withdrawal on demand and as of June 30, 2023, 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, 2023

58 NOTE 3 – CASH AND INVESTMENTS (Continued)

F. Credit Risk

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 org anization. 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, 2023, the City’s investment in money market mutual funds, and supranational securities are rated AAA by Standard & Poor’s. U.S. agency securities are rated AA by Standard & Poor’s. The medium‐term notes are rated between A and AA by Standard & Poor’s. The U.S. Treasury obligations ar e exempt from credit rating disclosure. The Municipal Bonds ‐ Shoreline Regional Park Commu nity 2018 Revenue Bonds are rated A+ by Standard & Poor’s. The Local Agency Investment Fun d was not rated as of June 30, 2023.

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 con centration of 5.0 percent or mo re of investments in any one issuer other than U.S. Treasury obligations, money market mutual funds and external investment pools. As of June 30, 2023, those investments held b y the City consisted of the following (dollars in thousands):

Issuer Investment Type Amount
Federal Home Loan Bank Federal Agency Securities 117,771$ Federal National Mortgage Association Federal Agency Securities 6 7,524 Federal Home Loan Mortgage Association Federal Agency Securities 54,114

As of June 30, 2023, those investments held by bond trustee consisted of Federal Home Loan Bank federal agency securities of $6,695,000.

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 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 observable inputs; and Level 3 inputs are significant unobservable inputs. As of June 30, 2023, All of the City’s investments are measured using level 2 inputs, except for investments in LAIF and money market mutua l 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 b y 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, 2023

59 NOTE 4 – LOANS AND NOTES RECEIVABLE

As of June 30, 2023, the City’s loans and notes receivable are as follows (dollars in thousands):

CDBG Rehabilitation 95$
Mid‐Peninsula Support network 55
Ginzton Terrace 761
Project Match 132
Central Park Apartments 3,210
Sierra Vista Apartments Affordance Housing 238
Stoney Pine Charities 124
HomeSafe 100
San Antonio Place LP 5,465
Tyrella Gardens 1,590
Bill Wilson Center 133
San Veron Park 779
SR Fountains LP 1,462
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 22,773
Housing Trust Silicon Valley 5,000
MV Lot 12 Housing Partners 1,045
La Avenida 4,013
Montecito L.P. 755
Employee Homebuyer Program 2,377
Total 112,129 $

The City engages in programs designed to encourage construction or improvement of housing for persons with extremely low to moderate income or other such pro jects. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. The City does not ex pect to collect these loans in the near term, and most of the loan terms are deferred to the future. A ny 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.

These loan programs are funded by Community Development Block Grants (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 loans were transferred to the Housing Successor Special Revenue Fund (Housing Successor) of the City.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

60 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)

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, 2023.

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 t he purpose of providing temporary shelter for battered parents and their children. The loan was funded by CDBG funds and 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 b y a first deed of trust. As of June 30, 2023, the amount of the loan outstanding is $55,000.

C. Ginzton Terrace

On December 11, 1991, the City loaned $380,000 to the Mid‐Peninsula 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 r epaid by January 31, 2066 and January 31, 2071, respectively, with zero percent interest.

As of June 30, 2023, the total outstanding amount of all loans related to Ginzton Terrace is $761,000.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

61 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)

D. Project Match

On May 1, 1997, the City loaned $132,000 to Project Match for t he acquisition of the house located at 1675 South Wolfe Road , Sunnyvale, to provide afforda ble 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, 2023, 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 known as Central Park Apartments at 90 Sierra Vista Avenue to be used to provide hous ing for very‐low‐ to low‐ income seniors. The entire project was initially funded by three 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 to be repaid over 36 years 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 f or the rehabilitation of the

Central Park Apartments. The loan was funded by CDBG funds to b e 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 fu nds 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. As of June 30, 2023, the outstanding HOME loan balance is $182,000.

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, 2023, 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, 2023

62 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, 2023, the total outstanding balance of all loans related to Central Park apartments is $3.2 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 a nd renovation of a 34‐unit affordable apartment complex to low and moderate income familie s 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 inter 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 loa 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, 2023, 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 provid e affordable housing for very low income persons with developmental disabilities. The lo an was funded by $9,000 of CDBG funds and $115,000 of HOME grant funds. The loans bear simple interest at 3.0 percent, but repayment of interest and principal is deferred for 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, 2023, 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 Real, 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 transferred. The loan is collateralized by a first deed of trust. As of June 30, 2023, 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, 2023

63 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 of 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 of the rights and 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 the Housing Successor funds. The loan is provided at zero percent interest with repayment deferred for 55 years unless the San Antonio Place LP no longer meets the terms and conditions of the agreement. As of June 30, 2023, 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 MP Tyrella Associates for the development and renovation of an affordable apartment compl ex to low and moderate income families to be located at 449 Tyrella Avenue. The loan was funded by CDBG funds with

3.0 percent interest and a term of 55 years.

On April 22, 2014, the City awarded MP Tyrella Associates addit ional loans of $172,000 from CDBG funds and $653,000 from HOM E funds to rehabilitate 56 exis ting rental units. The loan agreement for CDBG funds was executed on July 1, 2015, with 3.0 percent simple interest and is due in 50 years. The loan agreement from HOME funds was execut ed on July 1, 2015, with 3.0 percent simple interest and is due in 43 years.

On August 1, 2022, the City entered into an amended and restate d secured promissory note agreement with MP Tyrella Associates and the loan funded by CDBG funds and HOME funds were amended to $819,000 and $771,000, respectively. The loan has a 3.0 percent interest and a term of 55 years. As of June 30, 2023, the total
outstanding balance of all loans related to Tyrella
Gardens is $1.6 million.

K. Bill Wilson Center

On December 5, 2008, the City loaned $133,000 to The Bill Wilson 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 interest. As of June 30, 2023, the amount of the loan outstandi ng 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. As of June 30, 2023, 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, 2023

64 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)

M. SR Fountains LP

On December 1, 2009, the City approved to loan up to $255,000 t o SR Fountains Limited Partnership for the rehabilitat ion of 124 existi ng units at The Fountains Apartments property located at 2005 San Ramon Avenue. The loan was funded by HOME g rant 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.

As of June 30, 2023, the total outstanding balance of all loans related to SR Fountains LP is $1.5 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 le ase 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 wa s 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, 2023, 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, 2023, 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, 2023

65 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 with 3.0 percent interest and a term of 55 years. As of June 30, 2023, 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, 2023, the amount of the loan outstanding is $8.0 milli on.

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 Avenue. 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, 2023, the amount of the l oan 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 t he amounts of $421,000, $96,000, and $7.6 million, respectively. The term of the loan is 3.0 percent interest for 55 years. As of June 30, 2023, 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 $22.8 million and was funded by Housing funds. The loan has a 55‐year term with 3.0 percent simple interest rate.

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 req uired to holdback loan proceed of $4.7 million and deposit into a segregated bank account. Du ring Fiscal Year 2022‐23, the holdback loans proceed was disbursed to 950 ECR. As of June 30, 2023, the amount of the loan outstanding is $22.8 million.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

66 NOTE 4 – LOANS AND NOTES RECEIVABLE (Continued)

U. Housing Trust Silicon Valley

On May 26, 2022, the City entered into an assignment and assumption 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 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 January 31, 2025, with 1.5 percent interest rate payable semi‐annually. As of June 30, 2023, the amount of the loan outstanding is $5.0 million.

V. MV Lot 12 Housing Partners

On March 2, 2023, the City entered into a predevelopment loan agreement of $1.3 million with MV Lot 12 Housing Partners, L.P. for funding of predevelopment activities on a 1.5‐acre real property 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, 2023, the amount of the loan outstanding is $1.0 million.

W. La Avenida

On December 8, 2020, the City Council approved a prefunding of $1.3 million from Housing funds for use in predevelopment activities related to affordable housing developments at 1188 Armand Drive. The City entered into an affordable housing loan agreement, effective as of December 1, 2022, with Avenida Armand, L.P. to provide construction/permanent loan to the developer in the amount of $15.0 million. The term of the loan is 3.0 percent interest for 55 years. As of June 30, 2023, the amount of the loan outstanding is $4.0 million.

X. Montecito L.P.

On June 22, 2021, the City Council approved a prefunding of $1.3 million from Housing funds for use in predevelopment activities related to affordable housing developments at 1265 Montecito Ave. The City executed a predevelopment loan agreement on July 1, 2022 with Montecito, L.P.

The term of the loan is no interest and matures on the earlier of i) December 31, 2024, and ii) the date of closing for any construction/permanent loan provided by the City. As of June 30, 2023, the amount of the loan outstanding is $755,000.

Y. 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 Fund and the notes have terms of thirty years and interest based on applicable federal rate. Payment is deducted from the employee’s biweekly paycheck. As of June 30, 2023, there are two employee loans and the outstanding balance is $2.4 million.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

67 NOTE 5 – INTERFUND TRANSACTIONS

A. Current Interfund Balances

Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2023, the Retirees’ Health Plan Internal Service Fund owed Equipment Maintenance & Replacement Internal Service Fund $1,287,000 while the Fire Union Custodial Fund owed Flexible benefits Plan Custodial Fund $10,000.

B. Interfund Advances

Advances are not expected to be repaid within the next fiscal y ear. As part of the City’s capital projects budgeting and funding process, resources from enterpri se funds are advanced to the General Capital Projects Fund where the project costs are budgeted 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, 2023, the General Capital Projects Fund has outstanding advances of $ 29.4 million, $23.0 million, and $302,000 from the Water, Wastewater, and Solid Waste enterprise funds, respectively.

C. 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.

D. 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 repayment. L ess 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, 2023

68 NOTE 5 – INTERFUND TRANSACTIONS (Continued)

Transfers between funds during the fiscal year ended June 30, 2 023, are as follows (dollars in thousands):

Funds Receiving Transfers Funds Making Transfers
Amount
Transferred
Funding
Purpose
General Fund Shoreline Regional Park Community 140$             C Housing 5                    C
General Capital Projects 2,148            B
Nonmajor Governmental 1,481            C
Water 220               C
3,994
Shoreline Regional Park Community General Capital Projects 2,061            B Housing General Fund 626               C
General Capital Projects 1,678            B
2,304
General Capital Projects General Fund 15,047          C Shoreline Regional Park Community 22,529          C
Housing 10,653          C
Park Land Dedication Capital Projects 30,637          C Nonmajor Governmental 25,588          C
104,454
Park Land Dedication Capital Projects General Capital Projects 1,631            B Nonmajor Governmental Shoreline Regional Park Community 4,879            A General Capital Projects 6,036            B
Nonmajor Governmental 5,801            D
16,716
Water General Fund 311               E
General Capital Projects 700               B
Internal Service 245               C
1,256
Wastewater General Fund 211               E
General Capital Projects 466               B
Internal Service 20                  C
697
Solid Waste General Fund 224               E
General Capital Projects 14                  B
238
Internal Service Funds General Fund 3,496            C
Shoreline Regional Park Community 140               C
Housing 3                    C
General Capital Projects 93                  B
Nonmajor Governmental 237               C
Water 218               C
Wastewater 503               C
Solid Waste 178               C
4,868
Total Interfund Transfers 138,219$

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

69 NOTE 5 – INTERFUND TRANSACTIONS (Continued)

The purposes for these transfers are as follows:

A. To fund debt service payments.

B. To transfer remaining balances on completed capital improvement projects, interest back to original funding source, and other funds.

C. Recurring transfers for capital, operating costs, or equipment replacement.

D. To transfer debt service reserve funds.

E. To transfer unpaid utility billing assist program funds.

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 cost 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

Major outlays for capital assets and improvements are capitalized as projects are constructed.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

70 NOTE 6 – CAPITAL ASSETS (Continued)

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 3, is as follows (dollars in thousands):

Balance
June 30, 2022 Balance
(as restated *) Additions Retirements Transfers June 30, 2023 Governmental activities
Capital assets not being depreciated:

Land $ 138,782 40,153 ‐ ‐ 178,935 Lease assets ‐ land (Note 11) 6,549 ‐ (6,549) ‐ ‐ Construction in progress 80,481 38,446 (76) (17,293) 101,558 Total capital assets not being depreciated 225,812 78,599 (6,625) (17,293) 280,493 Capital assets being depreciated:

Buildings 188,468 ‐ ‐ ‐ 188,468 Improvements other than buildings 227,032 ‐ ‐ 13,428 240,460 Machinery and equipment 39,144 1,566 (1,186) 865 40,389 Traffic signals 15,513 ‐ ‐ 522 16,035 Streetlights 10,942 1,289 ‐ 533 12,764 Bridges and culverts 18,440 ‐ ‐ ‐ 18,440 Sidewalks, curbs and gutters 116,041 466 (121) ‐ 116,386 Streets and roads 284,304 123 (99) 1,945 286,273 Total capital assets being depreciated 899,884 3,444 (1,406) 17,293 919,215 Less accumulated depreciation for:

Buildings (105,289) (4,987) ‐ ‐ (110,276) Improvements other than buildings (177,766) (8,477) ‐ ‐ (186,243) Machinery and equipment (29,028) (2,647) 1,186 ‐ (30,489) Traffic signals (9,077) (620) ‐ ‐ (9,697) Streetlights (7,090) (114) ‐ ‐ (7,204) Bridges and culverts (6,494) (309) ‐ ‐ (6,803) Sidewal
ks, curbs and gutters (78,956) (2,815) 91 ‐ (81,680) Streets and roads (184,325) (7,304) 77 ‐ (191,552) Total accumulated depreciation (598,025) (27,273) 1,354 ‐ (623,944) Net capital assets being depreciated 301,859 (23,829) (52) 17,293 295,271 Lease assets being amortized (Note 11):

Lease assets ‐ 3,826 ‐ ‐ 3,826 Less accumulated amortization ‐ ‐ (94) ‐ (94) Net lease assets being amortized ‐ 3,826 (94) ‐ 3,732 SBITA assets being amortized (Note 12):

SBITA assets 1,083 964 ‐ ‐ 2,047 Less accumulated amortization ‐ ‐ (562) ‐ (562) Net SBITA assets being amortized 1,083 964 (562) ‐ 1,485 302,942 (19,039) (708) 17,293 300,488 Governmental activities capital assets, net 528,754$ 59,560 (7,333) ‐ 580,981 Total capital assets, lease assets, and
SBITA assets, net

* Beginning balances are restated due to the implementation of GASB Statement No. 96.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

71 NOTE 6 – CAPITAL ASSETS (Continued)

Balance Balance
June 30, 2022 Additions Retirements Transfers June 30, 2023 Business‐type activities
Capital assets not being depreciated:

Land $ 220 ‐ ‐ ‐ 220 Construction in progress 21,793 7,887 ‐ (13,197) 16,483 Total capital assets not being depreciated 22,013 7,887 ‐ (13,197) 16,703 Capital assets being depreciated:

Buildings 8,748 ‐ ‐ ‐ 8,748 Improvements other than buildings 169,890 4,594 (781) 13,197 186,900 Machinery and equipment 8,655 271 (66) ‐ 8,860 Total capital assets being depreciated 187,293 4,865 (847) 13,197 204,508 Less accumulated depreciation for:

Buildings (8,557) (6) ‐ ‐ (8,563) Improvements other than buildings (96,216) (8,174) 567 ‐ (103,823) Machinery and equipment (6,568) (380) 66 ‐ (6,882) Total accumulated depreciation (111,341) (8,560) 633 ‐ (119,268) Net capital assets being depreciated 75,952 (3,695) (214) 13,197 85,240 Business‐type activities capital assets, net 97,965$ 4,192 (214) ‐ 101,943

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, 2023, are as follows (dollars in thousands):

Governmental Activities:

General government 1,746 $
Public safety 1,851
Public works 15,464
Community development 304
Culture and recreation 7,908
Total 27,273 $
Business‐type Activities:

Water 4,734 $
Wastewater 3,425
Solid Waste 401
Total 8,560 $

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

72 NOTE 6 – CAPITAL ASSETS (Continued)

C. Construction Commitments

The City has active construction projects that include land; im provements other than buildings; buildings; infrastructure; and water, wastewater, and solid waste improvements. Commitments for construction, as of June 30, 2023, are as follows (dollars in thousands):

Spent Remaining
to Date Commitment
Governmental activities:

Land ‐ $ 203
Improvements other than buildings 57,821 8,743
Buildings 19,210 12,778
Infrastructure 24,527 5,674
Total governmental activities 101,558 $ 27,398
Business‐type activities:

Water projects 9,295$          6,355
Wastewater projects 6,332             4,544
Solid Waste projects 856                13
Total business‐type activities 16,483 $        10,912

Commitments are funded from 1) revenues received directly by th e capital projects fund and 2) general fund, special revenue fund and enterprise fund reven ues 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 approximately 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 recreational purposes with the City. The remaining 2.0‐acre open space (Open Space Park) is 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.

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 non‐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.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

73 NOTE 6 – CAPITAL ASSETS (Continued)

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, 2023, pre‐transfer due diligence activities were not completed and the $20.0 million payment 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 issu es 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, 2023, are as follows (dollars in thousands):

Original Balance Due
Issue June 30, 2022 Balance Within
Amount (as restated *) Additions Retirements June 30, 2023 One Year Governmental Activities:

Revenue Bonds:

Shoreline Regional Park Community
2011 Revenue Bonds

2.0% to 5.75%, due Fiscal Year 2040‐41 $ 39,030 21,795 ‐ (21, 795) ‐ ‐ 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 5,657 ‐ (217) 5,440 217 Subtotal 2018 Revenue Bonds Series A 59,901 59,142 ‐ (217) 58,925 217 Shoreline Regional Park Community
2018 Revenue Bonds Series B

3.36% to 4.24%, due Fiscal Year 2031‐32 10,315 10,315 ‐ (920) 9,395 950 Shoreline Regional Park Community
2022 Refunding Revenue Bonds Series A

4.83%, due Fiscal Year 2039‐40 21,565 ‐ 21,565 ‐ 21,565 1,145 Total Revenue Bonds 130,811 91,252 21,565 (22,932) 89,885 2,312 Compensated Absences ‐ 11,260 62 (64) 11,258 1,905 Landfill Containment ‐ 43,268 3,029 ‐ 46,297 ‐ Lease Liabilities (Note 11) ‐ 6,499 3,826 (6,50 8) 3,817 366 SBITA Liabilities (Note 12) ‐ 1,083 964 (739) 1,308 772 Claims liabilities ‐ 9,297 3,578 (1,53 2) 11,343 3,467 Total governmental activities $ 130,811 162,659 33,024 (31, 775) 163,908 8,822

* Beginning balances are restated due to the implementation of GASB Statement No. 96.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

74 NOTE 7 – NONCURRENT LIABILITIES (Continued)

Original Due Within
Issue Balance Balance One
Amount June 30, 2022 Additions Retirements June 30, 2023 Year Business‐type activities:

Water Revenue Bonds .
2004 Series A

3.0%‐4.5%, due Fiscal Year 2028‐29 9,700 $ 3,695 ‐ (460) 3,235 480 City of Palo Alto Loan
0%, due Fiscal Year 2028‐29 6,000 2,100 ‐ (300) 1,800 300 Less unamortized discount (1,000) (350) ‐ 50 (300) (50) Wastewater Direct Financing Arrangement

3.4%, due Fiscal Year 2033‐34 10,100 8,419 ‐ (579) 7,840 599 Compensated Absences ‐ 1,052 90 (69) 1,073 177 Total business‐type activities 24,800$ 14,916 90 (1,358) 13,648 1,506

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 (2011 Bonds). 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 taxab le 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 2011 Bonds were fully refunded through the issuance of 2022 Refunding Revenue Bonds, Series A (2022 Bonds) during the year ended June 30, 2023.

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 cap ital 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 taxab le 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 bo nds, 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, 2023

75 NOTE 7 – NONCURRENT LIABILITIES (Continued)

2022 Refunding Revenue Bonds Shoreline Regional Park Community ‐ On November 22, 2022, the Shoreline Community issued the 2022 Bonds of $21.6 million through private placement. Proceeds from the 2022 Bonds were used to fully refund the outstanding 2 011 Bonds of $21,100,000. The 2022 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 refunding resulted in net present value savings of $1.1 million. 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 they 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 outstanding, declare the accreted value and principal of the bonds, together with the accrued interest, to be due and payable immediately.

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 gas and 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, 2023, is approximately $46.3 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 $2.9 mill ion as of June 30, 2023, for postclosure care costs on these two landfill sites. A third lan dfill 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 reas onably 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 paya ble 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 the owners of a majority in 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 MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

76 NOTE 7 – NONCURRENT LIABILITIES (Continued)

City of Palo Alto Loan – The Cities of Palo Alto and Mountain View began a joint proje ct to construct a reclaimed water pipeline (Project) in 2004. In Octo ber 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 year s following the completion of the construction. The City agreed to repay the City of Palo Alto 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.

Wastewater Direct Financing Arrangement – On November 1, 2018, the City executed an Installment Sale Agreement between the City and the Financing A uthority and an Assignment Agreement between the Financing Authority and Opus Bank to provide funds for Wastewater infrastructure capital projects. The financing arrangement is 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 $148.9 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 , 2023, tax increment revenues amounted to $62.9 million, which represented coverage of 10.7 o ver the $5.9 million in debt service.

The pledge of future water fund revenues ends upon repayment of the $5.6 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, 2023, Water Fund revenues including operating revenues, non‐operating interest e arnings, capital contributions – developer fees, and transfers in amounted to $40.2 million and operating expenses, excluding depreciation or amortization amounted to $30.1 million. Net Revenues available for debt service amounted to $10.1 million, which represented coverage of 11.0 over the $924,000 in debt service.

The pledge of future wastewater fund revenues ends upon repayme nt of the $9.4 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, 2023, Wastewater Fund revenues including operating revenues, non‐operating interest e arnings, capital contributions – developer fees, and transfers in amounted to $35.5 million and operating expenses, excluding depreciation or amortization amounted to $18.8 million. Net Revenues available for debt service amounted to $16.7 million, which represented coverage of 19.6 over the $851,000 in debt service.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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 2024 $ 2,095 4,042 780 146 599 253 2025 1,860 3,959 805 124 619 233 2026 1,940 3,878 825 101 641 212 2027 2,025 3,793 850 78 663 190 2028 2,105 3,703 875 53 685 167 2029‐2033 11,970 16,975 900 27 3,795 468 2034‐2038 15,200 13,723 ‐ ‐ 838 14 2039‐2043 17,350 9,721 ‐ ‐ ‐ ‐ 2044‐2048 24,290 4,558 ‐ ‐ ‐ ‐ 2049 5,610 140 ‐ ‐ ‐ ‐ Total $ 84,445 64,492 5,035 529 7,840 1,537 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 (police 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 participatin g member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that i nclude a full description of t he 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 Emp loyees’ 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 . As such, members who 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, 2023

78 NOTE 8 – PENSION PLANS (Continued)

The Plans’ provisions and benefits in effect at June 30, 2023, 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 35.12% 35.12% (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 53.51% 53.51% (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, 2022, the most recent actuarial valuations information available, are as follows:

Miscellaneous Safety
Inactive employees or beneficiaries currently
receiving benefits 756 329
Inactive employees entitled to but not yet
receiving benefits 534 104
Active employees 468 150
Total 1,758 583

Contributions – Section 20814(c) of the California Public Employees’ Retireme nt 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 additional 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, 2023

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 $1.29 million and $1.1 million in excess of the actuarially determined contributions for the Miscellaneous and Safety Plans, respectively, during the fiscal year ended June 30, 2023.

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, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022 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, 2021 actuarial valuations were determined using actuarial assumptions as follows:

Miscellaneous and Safety Plans
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by Entry Age and Service Post Retirement Benefit Increase The lessor of contract COL A or 2.30% until Purchasing Power Protection Allowance Floor on
purchasing power applies, 2.30% thereafter.

Mortality Derived using CalPERS Membership Data
for all Funds (1)

(1) The mortality table used was developed based on CalPERS’ specif ic data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre‐ retirement and Post‐retirement mortality rates include generational mortality improvement using 80% of Scale MP‐2020 published by the Society of Actuaries. For more details on the table, refer to the 2021 CalPERS experience study report available on the CalPERS website.

All other actuarial assumptions used in the June 30, 2021 actua rial valuation were based on the 2021 CalPERS Experience Study for the period from 2001 to 2019, including updates to salary increase, mortality and retirement rates. Further details of th e 2021 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, 2023

80 NOTE 8 – PENSION PLANS (Continued)

Change of Assumptions – During measurement period 2022, the discount rate was reduced from

7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study.

Discount Rate – The discount rate used to measure the total pension liability was 6.90 percent.

The projection of cash flows used to determine the discount rate assumed that the contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required 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, th e 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 r eturn on pension plan investmen ts was determined using a building‐block method in which expected future real rates of re turn (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 expe ctations. Using historical retu rns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building‐block approach. The expected rate of return was then a djusted to account for assumed administrative expense of 10 basis points. The expected real rates of return by asset class are as follows:

Asset Class:

Assumed
Asset
Allocation Real Return 1, 2
Global Equity ‐ Cap‐Weighted 30.0% 4.54%
Global Equity ‐ Non‐Cap‐Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage‐Backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage ‐5.0% ‐0.59%
(1) An expected inflation of 2.30% used for this period (2) Figures are based on the 2021 Asset Liability Management study.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

81 NOTE 8 – PENSION PLANS (Continued)

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, 2021 483,820 $ 423,307 60,513 Changes during the measurement period:

Service cost 9,639 ‐ 9,639 Interest on the total pension liability 33,695 ‐ 33,695 Changes in assumptions 14,543 ‐ 14,543 Differences between expected and actual experience (1,882) ‐ (1,882) Contributions ‐ employer ‐ 17,345 (17,345) Contributions ‐ employee ‐ 5,666 (5,666) Investment income ‐ (31,970) 31,970 Administrative expenses ‐ (264) 264 Benefit payments, including refunds of employee
contributions (25,927) (25,927) ‐ Net changes 30,068 (35,150) 65,218 Balance at June 30, 2022 513,888 $ 388,157 125,731 Safety Plan:

Total Pension
Liability
Plan Fiduciary
Net Position
Net Position
Liability
Balance at June 30, 2021 419,108 $ 350,911 68,197 Changes during the measurement period:

Service cost 8,910                ‐                        8,910 Interest on the total pension liability 29,621              ‐                        29,621 Changes in assumptions 16,330              ‐                        16,330 Differences between expected and actual experience 74                     ‐                        74 Contributions ‐ employer ‐                        13,748             (13,748) Contributions ‐ employee ‐                        4,295               (4,295) Investment income ‐                        (26,507)            26,507 Administrative expenses ‐                        (219)                 219 Benefit payments, including refunds of employee
con
tributions (21,344)            (21,344)            ‐
Net changes 33,591             (30,027)            63,618 Balance at June 30, 2022 452,699$         320,884           131,815 Total Net Pension Liability  ‐ All Plans at June 30, 2022 966,587$         709,041           257,546 Increase (Decrease)
Increase (Decrease)

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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% (5.90%)
Current
Discount Rate
(6.90%)
Discount Rate
+1% (7.90%)
Miscellaneous Plan 192,698$ 125,731 70,395 Safety Plan 191,846 131,815 82,277 Total 384,544$ 257,546 152,672

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, 2023, the City recognized pe nsion expense of $17.3 million and $20.2 million for the Miscellaneous and Safety Plans, respectively.

The City reported deferred outflows of resources related to pensions by sources for the fiscal year ended June 30, 2023 as follows (dollars in thousands):

Miscellaneous Plan: Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to  measurement date $                           17,837                                         ‐ Differences between expected and actual experience 410                                                                      1,233 Changes in assumptions 9,529                                                                          ‐ Net differences between projected and actual earnings
on plan investments 19,464                                                                       ‐ Total $                           47,240                                  1,233 Safety Plan: Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to  measurement date $                           14,581                                         ‐ Differences between expected and actual experience                                  1,047                                          ‐ Changes in assumptions 10,282                                                                       ‐ Net differences between projected and actual earnings
on plan investments 16,158                                                                      ‐ Total $                           42,068                                         ‐ Total ‐ All Plans 89,308$                            1,233

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

83 NOTE 8 – PENSION PLANS (Continued)

As of June 30, 2023, the City reported $17.8 million and $14.6 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 rec ognized as a reduction of the net pension liability in the fiscal year ending June 30, 2024. Net amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense are as follows (dollars in thousands):

Fiscal Year
Ending June 30,
Miscellaneous
Plan Safety Plan Total
2024 7,868 $               9,675          17,543
2025 6,703                 6,562          13,265
2026 1,393                 1,133          2,526
2027 12,206               10,117       22,323
Total 28,170$            27,487       55,657

NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS

A. General Information about the OPEB Plan

Plan Descriptions – By Council resolution and through agreements with its labor u nits, 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 eligib le 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.

Employees Covered – Employees covered by the benefit terms as of June 30, 2021, the most recent actuarial valuations information available, are as follows:

Inactive employees or beneficiaries currently
receiving benefits 435
Active employees 364
Total 799

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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, 2023

85 NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)

Contributions – The City’s OPEB funding policy is to contribute 100 percent o r more of the actuarially determined contribution each year. For the year en ded June 30, 2023, the City’s contributions totaled $5.4 million. For the purpose of increasi ng the funded status of the OPEB Plan, the City contributed $2.4 million in excess of the actuarially determined contributions during the fiscal year ended June 30, 2023.

B. Net OPEB Liability

The City’s net OPEB liability is measured as the total OPEB liability, less the OPEB plan’s fiduciary net position. The net OPEB liability is measured as of June 30, 2022 using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022 using standard update procedures.

Actuarial Assumptions – The total OPEB liability as of June 30, 2022 were determined using actuarial assumptions as follows:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 5.60%
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 2021 CalPERS Experience Study for the period from 1997 to 2019, except for using the MacLeod Watts Scale 2020 applied generationally from 2015 as the basis to project future morality improvements.

Change in Assumptions – During the measurement period 2022, the discount rate was reduced from 6.00 percent to 5.60 percent.

Discount Rate – The discount rate used to measure the total OPEB liability is 5.60 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 availabl e to make all projected OPEB payments for current active and inactive employees. Therefore, the long‐term expected rate of return on OEPB plan investments is applied to all periods of pr ojected benefit payments to determine the total OPEB Liability.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

86 NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)

The long‐term expected rate of return for OPEB plan investments is 5.60 percent. Using historical returns of all the funds’ asset classes, expected compound geom etric returns were calculated over the short‐term (1‐5 years) and the long‐term (6‐20 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 1‐5 1
Real Return
Years 6‐20 2
Global Equity 34.0% 6.80% 6.80%
Fixed Income 41.0 1.40 4.50
REITS 17.05 .406 .20
TIPS 5.0 0.60 3.60
Commodities 3.0 3.20 3.50

(1) An expected inflation rate of 2.40 percent is used for this period. (2) An expected inflation rate of 2.30 percent is used for this period.

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, 2021 148,746 $ 17 4,500 (2 5,754) Changes during the measurement period:

Service cost 3,474 ‐ 3,474 Interest on the total OPEB liability 8,929 ‐ 8,929 Changes in assumptions 7,823 ‐ 7,823 Contributions ‐ employer ‐ 5,848 ( 5,848) Investment income ‐ (2 1,942) 2 1,942 Administrative expenses ‐ (44) 44 Benefit payments (6,820) ( 6,820) ‐ Net changes 13,406 (2 2,958) 3 6,364 Balance at June 30, 2022 162,152 $ 15 1,542 1 0,610 Increase (Decrease)

Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate – The net OPEB liability of the City, calculated using the discount rate of 5. 60 percent, as well as what the City’s 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% (4.60%)
Current
Discount Rate
(5.60%)
Discount Rate
+1% (6.60%)
33,138$ 10,610 (7,850)

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

87 NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)

Sensitivity of the Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rates – The net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current rate are as follows (dollars in thousands):

Healthcare
Cost Trend
Rate ‐1%
Healthcare
Cost Trend Current
Rate
Healthcare
Cost Trend
Rate +1%
(8,719)$ 10,610 34,321

OPEB Plan Fiduciary Net Position – Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued CERBT financial report.

E. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 2023, the City recognized OP EB income of $2.1 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, 2023 are as follows (dollars in thousands):

Deferred
Outflows
Deferred Inflows
of Resources
OPEB contributions subsequent to measurement date $ 5,387 ‐ Differences between expected and actual experience ‐ 10,947 Changes in assumptions 8,810 178 Net differences between projected and actual
earnings on plan investments 14,535 ‐ Total $ 28,732 11,125

As of June 30, 2023, the City reported $5.4 million as deferred outflows of resources related to contributions for OPEB subsequent to the measurement date, whic h will be recognized as a reduction of the net OPEB liability in the fiscal year ending June 30, 2024. Net amounts reported as deferred outflows of resource s and deferred inflows of resou rces related to OPEB will be recognized as OPEB expense are as follows (dollars in thousands):

Fiscal Year
Ending June 30,
2024 18$
2025 1,506
2026 3,366
2027 7,330
Total 12,220$

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

88 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 employees. 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.

ACCEL is a joint powers authority of medium‐sized California mu nicipalities, which pools catastrophic general liability, automobile liability and public officials’ errors 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 operating 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 dete rmined based upon historical claims data discounted at 2.5% 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 ended June 30 are as follows (dollars in thousands):

2022 2023
Beginning Balance 8,452 $         9,297
Liability for current and change in prior fiscal year
claims and claims incurred but not reported (IBNR) 2,152            3,578 Claims paid (1,307)          (1,532)
Ending Balance 9,297            11,343
Current portion 3,180 $         3,467

The City has not significantly reduced its insurance coverage f rom 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, 2023

89 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 lease asset. As a lessor, the City is required to recognize 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 into lease agreements with various lease terms. Most leases include periodic adjustments to the lease amount at determined interval s. For the year ended June 30, 2023, the City received an immate rial 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, 2023, as well as lease receivable and lease related deferred inflows of resources as of June 30, 2023 are as follows (dollars in thousands):

General Governmental
Fund Activities
Lease revenue for the year 29,046 $ 29,046
Lease interest revenue for the year 13,403 13,403 Lease receivable at year‐end 777,815 777,815 Deferred inflow of resources at year‐end 746,114 746,114

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
2024 9,840$        13,201         23,041
2025 10,449        13,386         23,835
2026 11,325        12,844         24,169
2027 11,845        12,657         24,502
2028 13,060        12,523         25,583
2029‐2033 76,313        59,100         135,413
2034‐2038 100,204      51,516         151,720
2039‐2043 136,47 0      41,391         177,861
2044‐2048 184,623      27,696         212,319
2049‐2053 134,750      11,774         146,524
2054‐2058 35,489         6,195           41,684
2059‐2063 39,961         2,843           42,804
2064‐2068 9,838           75 0              10,58 8
2069‐2070 3,648           58                 3,706
Total 777,815 $   265,934       1,043,749
Governmental Activities
General Fund/

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

90 NOTE 11 – LEASES (Continued)

B. City as Lessee

As a lessee, the City entered into lease agreements with various lease terms. For the year ended June 30, 2023, the City had not paid any variable and other payments for the lease arrangement.

At June 30, 2023, the leased asset balance was $3.7 million.

The annual debt service requirement for the leases liabilities is as follows (dollars in thousands):

For the Fiscal Year
Ending June 30 Principal Interest Total
2023 366$            82                 448
2024 504              85                 589
2025 587              71                 658
2026 628              55                 683
2027 575              38                 613
2028‐2031 1,157          56                 1,213
Total 3,817$        387               4,204
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 Agreement (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, 2023, the amount of lease receivable is $16.0 million.

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 construct ed a second 556,000 square foot facility. On April 19, 2001, SGI assigned the two lease agreements described above to Goldman Sachs, Inc., an entity not affiliated with SGI or the C ity. Goldman Sachs assigned the agreements to WXIII/Crittenden Realty C, LLC on May 22, 2001, which 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 initial base rent. At June 30, 2023, the amount of lease receivable for the 1995 Lease and 1997 Lease are $267.9 million and $293.1 million, respectively.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

91 NOTE 11 – LEASES (Continued)

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 Jun e 30, 2023, the amount of lease receivable for the 2007 Lease is $109.3 million.

On April 1, 2011, the City, as lessor, entered into a 52‐year l ease with Google (termination to coincide with the 2007 Lease). G oogle advanced the rent for the 52‐year lease term in the amount of $30.0 million to the City. At June 30, 2023, the amou nt of lease receivable is $16.7 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. On June 29, 2023, an amendment was signed an d starting July 1, 2023, the City receives payment of $930,000 annually with annual adjustme nts of 2% through December 31, 2025. At June 30, 2023, the amount of lease receivable is $2.3 million.

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. Commencing 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, 2023, the amount of lease receivable is $62.4 million.

92 CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 12 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA) The City entered into various agreements for SBITA. The City is required to recognize a SBITA liability and an intangible right‐to‐use SBITA asset. The City defines SBITA as balances with an initial individual value of more than $200,000.

For the year ended June 30, 2023, the City had not paid any var iable and other payments for the SBITA.

At June 30, 2023, the SBITA asset balance was $1.5 million.

The annual debt service requirement for the SBITA liabilities is as follows (dollars in thousands):

For the Fiscal Year
Ending June 30 Principal Interest Total
2024 $         772 9 781
2025 536   28 564
Total $       1,308   37 1,345
Governmental Activities
NOTE 13 –
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 and 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 – This caption represents net position, which is restricted as t o 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 restrict ed for any project or purpose.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

93 NOTE 13 – NET POSITION AND FUND BALANCES (Continued)

B. Fund Balances

Governmental fund balances represent the assets and deferred ou tflows of resources less the liabilities and deferred inflows of resources of each fund. Go vernmental funds report fund balance in classifications based primarily on the extent to whi ch the City is bound to honor 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 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.

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 constr ained by the City’s intent to b e used for a specific purpose, but are neither restricted nor committed. Intent is ex pressed by the City Council or its designees and may be changed at the discretion of the City Coun cil 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 an d 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, 2023

94 NOTE 13 – NET POSITION AND FUND BALANCES (Continued)

Detailed classifications of the City’s fund balances, as of Jun e 30, 2023, are as follows (dollars in thousands):

Fund Balance Classifications General
Shoreline
Regional
Park
Community Housing
General
Capital
Projects
Park
Land
Dedication
Capital
Projects
Other
Governmental Total
Nonspendable:

Inventory $ 667 ‐ ‐ ‐ ‐ 75 742 Deposits and prepaid costs 1,293 ‐ ‐ ‐ ‐ ‐ 1, 293 Total Nonspendable 1,960 ‐ ‐ ‐ ‐ 75 2,035 Restricted:

Shoreline Regional Park Community ‐ 75,328 ‐ ‐ ‐ ‐ 75, 328 Landfill Containment ‐ 11,000 ‐ ‐ ‐ ‐ 11, 000 Housing ‐ ‐ 177,482 ‐ ‐ ‐ 177,482 General Capital Projects ‐ ‐ ‐ 278,986 ‐ ‐ 278,986 Park Land Dedication Fees ‐ ‐ ‐ ‐ 68,421 ‐ 68, 421 Gas Tax ‐ ‐ ‐ ‐ ‐ 3,016 3,016 Other Streets and Transportation ‐ ‐ ‐ ‐ ‐ 487 487 Construction & Conveyance Tax ‐ ‐ ‐ ‐ ‐ 6,894 6, 894 Development Services ‐ ‐ ‐ ‐ ‐ 3,295 3, 295 CSFRA/Rental Housing Committee ‐ ‐ ‐ ‐ ‐ 1,518 1, 518 Mobile Home Rent Stabilization ‐ ‐ ‐ ‐ ‐ 321 321 Housing Successor ‐ ‐ ‐ ‐ ‐ 12,798 12, 798 Downtown Benefit Assessment District ‐ ‐ ‐ ‐ ‐ 21,246 21, 246 Police Asset Forfeitures ‐ ‐ ‐ ‐ ‐ 427 427 Grants ‐ ‐ ‐ ‐ ‐ 27,204 27, 204 Cable Television ‐ ‐ ‐ ‐ ‐ 795 795 Deferred Assessments ‐ ‐ ‐ ‐ ‐ 390 390 Debt Service ‐ ‐ ‐ ‐ ‐ 6,022 6, 022 Storm Drain Construction ‐ ‐ ‐ ‐ ‐ 449 449 Minor Estate Trust 445 ‐ ‐ ‐ ‐ ‐ 445 Total Restricted 44 5 86, 328 177,482 278,986 68,421 84,862 696,524 Committed:

Development Services 14,316 ‐ ‐ ‐ ‐ 34,358 48, 674 Budget Contingency 17,234 ‐ ‐ ‐ ‐ ‐ 17, 234 Earned Lease Revenue 7,087 ‐ ‐ ‐ ‐ ‐ 7, 087 Property Management 1,577 ‐ ‐ ‐ ‐ ‐ 1, 577 Graham Site Maintenance 615 ‐ ‐ ‐ ‐ ‐ 615 Transportation 11,084 ‐ ‐ ‐ ‐ ‐ 11, 084 Capital Improvement 18,129 ‐ ‐ ‐ ‐ ‐ 18, 129 Open Space Acquisition 6,456 ‐ ‐ ‐ ‐ ‐ 6, 456 Strategic Property Acquisition 15,560 ‐ ‐ ‐ ‐ ‐ 15, 560 Childcare Commitment 262 ‐ ‐ ‐ ‐ ‐ 262 Compensated Absences 8,234 ‐ ‐ ‐ ‐ ‐ 8, 234 General Special Purpose ‐ ‐ ‐ ‐ ‐ 236 236 Shoreline Golf Links ‐ ‐ ‐ ‐ ‐ 40 40 Total Committed 100,554 ‐ ‐ ‐ ‐ 34,634 135,188 Assigned:

Contractual Obligations 6,479 ‐ ‐ ‐ ‐ ‐ 6, 479 Unassigned: 127,142 ‐ ‐ ‐ ‐ ‐ 127,142 Total Fund Balances $ 236,580 86,328 177,482 278,986 68,421 119,571 967,368

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

95 NOTE 13 – NET POSITION AND FUND BALANCES (Continued)

C. Committed Fund Balances

The City Council adopted reserve policies and additional council 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 ou t 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 intent is for this reserve to accumulate the rent, as it is ear ned, 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 provide a source of funds for obligations, which could arise from the City's leasin g of property including legal services, certain responsibilities identified in land leases, e nvironmental testing, or other costs normally incurred by a lessor.

5. The Graham Site Maintenance Reserve shall be used to fund the m aintenance 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 maj or 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 for the purpose of acquiring open space to meet the needs of the City as authorized by the C ity 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 b e 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, 2023

96 NOTE 13 – NET POSITION AND FUND BALANCES (Continued)

10. The Childcare Commitment Reserve shall be used to fund low‐income 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 ap propriations.

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 within the Shoreline Community identified in the Sea Level Rise Study.

5. The Enterprise Fund Reserves shall maintain a minimum 10 percent of operating budget for emergency, a minimum of 5 percent operating budget for continge ncy 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, 2023

97 NOTE 13 – 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 re lease event at the landfill site.

The estimated costs of the corrective actions are adjusted annually by an inflation factor approved by CalRecycle. On June 25, 2013, the City Council approved 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 $1.2 million for the fiscal year ended June 30, 2023, and $12.0 million to rebuild a new landfill system. As of June 30, 2023, the City restricted $11.0 million for landfill containment and planned to increase the balance by $1. 0 million annually until $12.0 million is reached.

NOTE 14 – COMMITMENTS AND CONTINGENCIES
A. Encumbrances

The City’s outstanding encumbrances as of June 30, 2023, are as follows (dollars in thousands):

Fund Balance
Amount Classification
General Fund 1,235 $      Committed
General Fund 6,479         Assigned
Shoreline Regional Park Community 165            Restricted Housing 12,203       Restricted
General Capital Projects 66,573       Restricted
Nonmajor Governmental Funds 5,878         Restricted
Total 92,533 $

B. Litigation

The City is a defendant in several lawsuits and other matters a rising 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, 2023

98 NOTE 14 – 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 reconciliation of actual to estimated charges is completed annually. For the fiscal year ended June 30, 2023, t hese costs totaled $10.4 million, which is included as a component of cost of sales and services 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, 2023, 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 new MOU wit h the City of 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, 2023, these costs totaled $7.0 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 (MVLAUHSD) and the Mountain View Whisman School District (MVWSD) effective July 1, 2013, for a p eriod of 10 years, superseding any prior agreements dating back to the first such agreement in 2006. The purpose of the Education Enhancement JPA is to create an Education Enhancement Reserve in which funds provided by the Shoreline Community are used to enhance the edu cational and technology capacity of students in the districts, which will contribute to the availability of a local technology workforce to further the objectives of the Shoreline Community. The agreement provides for minimum annual payments, which commenced with the fiscal year ended June 30, 2014, and have increased annually based on growth in property tax revenues in the preceding fiscal year. Each subsequent fiscal year increases based on growth in property tax revenues in the preceding fiscal year. For the fiscal year ended June 30, 2023, the Shoreline Community paid a total of $8.8 million in contributions to the school districts, including $5.4 millio n to MVWSD and $3.4 million to MVLAUHSD.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

99 NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)

A one‐year successor agreement was executed in June 2023 for the period of July 1, 2023 through June 30, 2024. The Shoreline Co mmunity and school districts ar e currently negotiating a long‐ term successor agreement which could alter future payments to the school districts.

F. Tax Revenue Sharing

Pursuant to an agreement between the City, the Shoreline Commun ity, 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, 2023, $2.2 million and $2.7 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 fo r 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 districts, 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 th e 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, 2023, 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 bond s 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 mon thly water purchase charges imposed upon the participating members. The Bonds are not a deb t obligation of any member, and BAWSCA’s failure to pay its Bonds would not constitute a de fault by any participating member.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

100
NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)

The City paid its surcharge of $1.3 million during the fiscal y ear ended June 30, 2023, which is included as a component of cost of sales and services expenses in the Water Enterprise Fund. The surcharge for Fiscal Year 2023‐24 is estimated to be $1.3 million.

H. Education Revenue Augmentation Fund

In 1992, as a way of solving its own budget shortfalls, the State enacted legislation that shifted partial financial responsibility for funding K‐14 education to local government. Property tax revenues belonging to cities, counties, and special districts were shifted to the Education Revenue Augmentation Fund (ERAF). When the State shifts more local pro perty tax than required, these funds are returned to cities, counties and special districts and are known as excess ERAF.

In November 2021, the County notified cities that the California School Boards Association and its Education Legal Alliance filed a lawsuit against the Controller of the State of California, disputing the calculation and disbursement of excess ERAF funds. As a re sult, the County estimates that 20% to 30% of ERAF disbursed to all cities over three years is subject to litigation. The County encouraged each agency to reserve 22% of the Excess ERAF distribution on an ongoing basis and going back to Fiscal Year 2020‐21. With the 22% calculation, the City estimated the amount at risk is approximately $5.1 million. Excess ERAF revenue for Fiscal Year 2023‐24 has been projected at $7.1 million, $2.0 million more than the at‐risk amount. There fore, the City did not record the $5.1 million as a liability at June 30, 2023. The City will co ntinue to evaluate this issue and will determine at each fiscal year‐end if a payable should be recorded for the litigation.

2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement period 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total pension liability
Service cost $             9,639 $             8,642                 8,622                 8,342                 7,669                 7,473                 6,675                 6,412                 6,218 Interest on the total pension liability               33,695               32,778               31,427               29,850               28,405               27,198               26,269               25,058               23,873 Changes of assumptions               14,543                          ‐                        ‐                             ‐                (2,554)               22,221                        ‐                   (6,028)                          ‐ Differences between expected and actual experience                (1,882)                 1,435                 4,461                 2,677                 2,350                (2,154)                   (577)                   (568)                          ‐ Benefit payments, including refunds of
employee contributions              (25,927)              (23,432)              (21,764)              (19,708)              (18,056)              (17,303)              (15,518)              (14,861)              (13,823) Net change in total pension liability               30,068               19,423               22,746               21,161               17,814               37,435               16,849               10,013               16,268 Total pension liability, beginning             483,820             464,397             441,651             420,490             402,676             365,241             348,392             338,379             322,111 Total pension liability, ending $         513,888 $         483,820             464,397             441,651             420,490             402,676             365,241             348,392             338,379 Plan fiduciary net position
Contributions, employer $           17,345 $           15,273               18,696               17,514               17,917               12,413               11,318                 8,673                 7,796 Contributions, employee                 5,666                 5,489                 3,959                 3,549                 3,513                 3,121                 3,065                 3,148                 3,147 Plan to plan resource movement                          ‐                          ‐                        ‐                           ‐                          (1)                        ‐                           ‐                             ‐                          ‐ Investment income              (31,970)               78,758               16,690               20,477               24,062               29,071                 1,328                 5,709               38,300 Benefit payments, including refunds of
employee contributions              (25,927)              (23,432)              (21,764)              (19,708)              (18,056)              (17,303)              (15,518)              (14,861)              (13,823) Administrative expenses                   (264)                   (347)                   (466)                   (219)                (1,277)                   (378)                   (156)                   (288)                          ‐ Net change in plan fiduciary net position              (35,150)               75,741               17,115               21,613               26,158               26,924                       37                 2,381               35,420 Plan fiduciary net position, beginning             423,307             347,566             330,451             308,838             282,680             255,756             255,719             253,338             217,918 Plan fiduciary net position, ending $         388,157 $         423,307             347,566             330,451             308,838             282,680             255,756             255,719             253,338 Plan net pension liability $         125,731 $           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 75.5% 87.5% 74.8% 74.8% 73.4% 70.2% 70.0% 73.4% 74.9% Covered payroll 49,915$            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 251.9% 127.0% 253.5% 252.8% 274.6% 307.4% 284.7% 255.8% 248.9% Note to schedule:
*
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 percen t. During measurement period 2018, demographic assumptions and inflation rate were changed in accordance to the 2017 CalPERS Experience Study.  There are no change in assumptions during measurement periods 2019, 2020, and 2021.  During measurement period 2022, the discount rate was reduced from 7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study.

Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only night years of information is shown.

Benefit Changes ‐ The figures above do not include any liability impact that may have resulted from plan changes, which occurred after the June 30, 2021 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

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
2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement period 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total pension liability
Service cost $             8,910                 7,933                 7,613                 7,066                 6,677                 6,857                 5,945                 6,061                 6,311 Interest on the total pension liability               29,621               28,366               27,043               25,815               24,593               23,599               22,704               21,792               20,641 Changes of assumptions               16,330                          ‐                        ‐                           ‐                   (1,385)               19,688                        ‐                   (5,345)                          ‐ Differences between expected and actual experience                       74                 2,993                 2,235                 2,998                 1,416                   (157)                (1,633)                 1,234                          ‐ Benefit payments, including refunds of
employee contributions             (21,344)             (19,902)             (18,711)             (17,734)             (16,998)             (15,977)             (14,765)             (13,721)             (12,416) Net change in total pension liability               33,591               19,390               18,180               18,145               14,303               34,010               12,251               10,021               14,536 Total pension liability, beginning             419,108             399,718             381,538             363,393             349,090             315,080             302,829             292,808             278,272 Total pension liability, ending $         452,699 $         419,108             399,718             381,538             363,393             349,090             315,080             302,829             292,808 Plan fiduciary net position
Contributions, employer $           13,748 $           12,508               15,569               14,385               14,872               10,572                 9,904                 8,139                 7,244 Contributions, employee                 4,295                 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             (26,507)               65,428               13,769               17,013               20,199               24,545                 1,117                 4,852               32,936 Benefit payments, including refunds of
employee contributions             (21,344)             (19,902)             (18,711)             (17,734)             (16,998)             (15,977)             (14,765)             (13,721)             (12,416) Administrative expenses                   (219)                   (289)                   (388)                   (184)                (1,079)                   (321)                   (133)                   (246)                          ‐ Net change in plan fiduciary net position             (30,027)               62,074               13,584               16,431               19,958               21,528                (1,180)                 1,712               30,688 Plan fiduciary net position, beginning             350,911             288,837             275,253             258,822             238,864             217,336             218,516             216,804             186,116 Plan fiduciary net position, ending $         320,884 $         350,911             288,837             275,253             258,822             238,864             217,336             218,516             216,804 Plan net pension liability $         131,815 $           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 70.9% 83.7% 72.3% 72.1% 71.2% 68.4% 69.0% 72.2% 74.0% Covered payroll 27,611$            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 477.4% 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 night 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)
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 2017 CalPERS Experience Study. There are no change in assumptions during measurement periods 2019, 2020, and 2021. During measurement period 2022, the discount rate was reduced from

7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study.

Fiscal Year Ended June 30,
102
Miscellaneous Plan
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Actuarially determined contributions (ADC) $ 15,909 15,117 14,159 14,207 12,769 11,289 9,925 8,806 8,073 7,796 Contributions in relation to the ADC (17,837) (17,345) (15,273) (18,696) (17,514) (17,917) (12,413) (11,318) (8,673) (7,796) Contribution deficiency (excess) $ (1,928) (2,228) (1,114) (4,489) (4,745) (6,628) (2,488) (2,512) (600) ‐ Covered payroll $ 50,300 49,915 47,644 46,084 43,994 40,657 39,034 38,450 36,233 34,163 Contributions as a percentage of
covered payroll 35.5% 34.7% 32.1% 40.6% 39.8% 44.1% 31.8% 29.4% 23.9% 22.8% Safety Plan
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Actuarially determined contributions $ 13,456 12,341 11,752 11,682 10,277 9,112 8,915 8,229 7,739 7,244 Contributions in relation to the ADC (14,581) (13,748) (12,508) (15,569) (14,385) (14,872) (10,572) (9,904) (8,139) (7,244) Contribution deficiency (excess) $ (1,125) (1,407) (756) (3,887) (4,108) (5,760) (1,657) (1,675) (400) ‐ Covered payroll $ 28,823 27,611 27,301 26,188 24,248 22,764 23,263 22,493 22,547 23,051 Contributions as a percentage of
covered payroll 50.6% 49.8% 45.8% 59.5% 59.3% 65.3% 45.4% 44.0% 36.1% 31.4% ADC for fiscal year June 30, 2023
Actuarial valuation date June 30, 2020
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, 2023 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. 103
2023 2022 2021 2020 2019 2018
Measurement period 2022 2021 2020 2019 2018 2017
Total OPEB liability
Service cost $                      3,474 $                      3,428                          3,320                          3,336                          3,231                          3,054 Interest on the total OPEB liability                          8,929                          9,456                          9,079                          9,857                          9,392                          8,820 Changes of assumptions                          7,823                          4,921                                 ‐                              (670 )                                 ‐                          15,660 Differences between expected and actual experience                                   ‐                      (13,543)                                 ‐                        (12,915 )                                 ‐                          (9,020 ) Benefit payments, including refunds of
employee contributions                        (6,820)                        (6,772)                        (6,183)                        (5,729)                        (5,459)                        (5,044) Net change in total OPEB liability                        13,406                        (2,510)                          6,216                        (6,121)                          7,164                        13,470 Total pension OPEB, beginning                      148,746                      151,256                      145,040                      151,161                      143,997                      130,527 Total OPEB liability, ending $                 162,152                      148,746                      151,256                      145,040                      151,161                      143,997 Plan fiduciary net position
Contributions, employer $                      5,848                          6,772                          8,497                          8,014                        13,233                        12,424 Investment income                      (21,942)                        28,673                          7,384                          8,797                          6,858                          7,065 Benefit payments, including refunds of
employee contributions                        (6,820)                        (6,772)                        (6,183)                        (5,729)                        (5,459)                        (5,044) Administrative expenses                              (44)                              (53)                              (67)                              (27)                            (206)                              (51) Net change in plan fiduciary net position                      (22,958)                        28,620                          9,631                        11,055                        14,426                        14,394 Plan fiduciary net position, beginning                      174,500                      145,880                      136,249                      125,194                      110,768                        96,374 Plan fiduciary net position, ending $                 151,542                      174,500                      145,880                      136,249                      125,194                      110,768 Plan net OPEB liability (asset) $                    10,610                      (25,754)                          5,376                          8,791                        25,967                        33,229 Plan fiduciary net position as a percentage
of the total OPEB liability 93.5% 117.3% 96.4% 93.9% 82.8% 76.9% Covered payroll 49,318$                    49,104$                    50,838                      49,135                      46,799                      44,181 Plan net OPEB liability (asset) as a percentage
of covered payroll 21.5% (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 six 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. During the measurement period 2022, the discount rate was reduced from 6.00 percent to 5.60 percent.

Fiscal Year Ended June 30,
104
2023 2022 2021 2020 2019 2018 2017
Actuarially determined contributions (ADC) $ 3,014 3,123 4,151 6,068 5,334 5,639 5,577 Contributions in relation to the ADC (5,387) (5,848) (6,772) (8,497) (8,014) (13,233) (12,424) Contribution deficiency (excess) $ (2,373) (2,725) (2,621) (2,429) (2,680) (7,594) (6,847) Covered payroll $ 51,730 49,318 49,104 50,838 49,135 46,799 44,181 Contributions as a percentage of
covered payroll 10.4% 11.9% 13.8% 16.7% 16.3% 28.3% 28.1% ADC for fiscal year June 30, 2023
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 Increas
e
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 seven years of information is shown.

The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2023 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 2021 CalPERS Experience Study for the period from 1997 to 2019, except for using the MacLeod Watts Scale 2020 applied generationally from 2015 as the basis to project future morality improvements.
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
3 (Dollars in Thousands)

Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:

Use of money and property 1,394 1,394 1,503 109 Developer fees and contributions ‐ ‐ 16,235 16,235 Total revenues 1,394 1,394 17,738 16,344 Other financing sources (uses):

Transfers in ‐ ‐ 1,631 1,631 Transfers out (3,850) (30,637) (30,637) ‐ Total other financing sources (uses) (3,850) (30,637) (29,006) 1,631 Net change in fund balance (2,456) $ (29,243) (11,268) 17,975 Fund balance, beginning of year 79,689
Fund balance, end of year 68,421$
107
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023

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. Th e 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 for funds derived from criminal assets seized by police, 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, 2023

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 Shoreline Regional Park Community 2022 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 2022 Refunding Revenue Bonds Series A as they become due.

The Special Assessments Fund accounts for resources financed by special assessments levied against property receiving special benefits, contributions from other f unds 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, 2023
(Dollars in Thousands)
Other Construction & Other
Streets and Conveyance Developer
Gas Tax Transportation Tax Fees
Cash and investments 2,448 $ 466 7,336 37,335 Restricted cash and investments ‐ ‐ ‐ ‐ Receivables:

Accounts 511 ‐ ‐ ‐ Interest 57 21 239 318 Loans and notes ‐ ‐ ‐ ‐ Inventory ‐ ‐ ‐ ‐ Deposits and prepaid items ‐ ‐ ‐ ‐ Total assets 3,016 $ 487 7,575 37,653 Liabilities, deferred inflows of resources
and fund balances:

Accounts payable and accrued liabilities ‐ $                          ‐                             681                            ‐ Refundable deposits ‐                             ‐                             ‐                             ‐ Unearned revenue ‐                             ‐                             ‐                             ‐ Total liabilities ‐                             ‐                             681                            ‐ Nonspendable ‐                             ‐                             ‐                             ‐ Restricted 3,016                         487                            6,89 4                        3,295
Committed ‐                            ‐                            ‐                            34,358 Total fund balances 3,016                        487                           6,894                        37,653 Total liabilities, deferred inflows of resources
and fund balances 3,016$                     487                           7,575                        37,653 Liabilities:

Fund balances:

SPECIAL REVENUE FUNDS
Assets:
110
Mobile Downtown
CSFRA / Rental Home Rent Benefit General
Housing Stabilization Housing Shoreline Assessment Special Committee Ordinance (MHRSO) Successor Golf Links District Purpose 1,428 323 1,388 505 21,143 582 ‐ ‐ ‐ 10 ‐ ‐ 82 ‐ ‐ 19 ‐ ‐ 9 2 ‐ 1 122 3 ‐ ‐ 11,410 ‐ ‐ ‐ ‐ ‐ ‐ 75 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,519 325 12,798 610 21,265 585 1 4 ‐ 68 17 2 ‐ ‐ ‐ 1 2 347 ‐ ‐ ‐ 426 ‐ ‐ 1 4 ‐ 495 19 349 ‐ ‐ ‐ 75 ‐ ‐ 1,518 321 12,798 ‐ 21,246 ‐ ‐ ‐ ‐ 40 ‐ 236 1,518 321 12,798 115 21,246 236 1,519 325 12,798 610 21,265 585 (Continued)
SPECIAL REVENUE FUNDS
111
CITY OF MOUNTAIN VIEW
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
(Dollars in Thousands)
Police
Asset Cable Deferred
Forfeitures Grants Television Assessments
Cash and investments 427 10,828 795 390 Restricted cash and investments ‐ ‐ ‐ ‐ Receivables:

Accounts ‐ 40 ‐ ‐ Interest ‐ 44 ‐ ‐ Loans and notes ‐ 16,073 ‐ ‐ Inventory ‐ ‐ ‐ ‐ Deposits and prepaid items ‐ 271 ‐ ‐ Total assets 427 27,25
6 795 390 Liabilities, deferred inflows of resources
and fund balances:

Accounts payable and accrued liabilities ‐ 52 ‐ ‐ Refundable deposits ‐ ‐ ‐ ‐ Unearned revenue ‐ ‐ ‐ ‐ Total liabilities ‐ 52 ‐ ‐ Nonspendable ‐ ‐ ‐ ‐ Restricted 427 27,204 795 390 Committed ‐ ‐ ‐ ‐ Total fund balances 427 27,204 795 390 Total liabilities, deferred inflows of resources
and fund balances 427 27,256 795 390 Liabilities:

Fund balances:

Assets:

SPECIAL REVENUE FUNDS
112

‐ ‐ ‐ ‐ ‐ 652 ‐ ‐ ‐ ‐ 6 822 ‐ ‐ ‐ ‐ ‐ 27,483 ‐ ‐ ‐ ‐ ‐ 75 ‐ ‐ ‐ ‐ ‐ 271 ‐ 5,968 9 45 449 121,172 ‐ ‐ ‐ ‐ ‐ 825 ‐ ‐ ‐ ‐ ‐ 350 ‐ ‐ ‐ ‐ ‐ 426 ‐ ‐ ‐ ‐ ‐ 1,601 ‐ ‐ ‐ ‐ ‐ 75 ‐ 5,968 9 45 449 84,862 ‐
‐ ‐ ‐ ‐ 34,634 ‐ 5,968 9 45 449 119,571 ‐ 5,968 9 45 449 121,172 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, 2023
(Dollars in Thousands)
Other Construction & Other
Streets and Conveyance Developer
Gas Tax Transportation Tax Fees
Revenues:

Property taxes ‐ $ ‐ ‐ ‐ Other taxes ‐ ‐ 4,104 ‐ Licenses, permits and fees ‐ ‐ ‐ ‐ Use of money and property 5 (54) 267 (99) Intergovernmental 3,969 687 ‐ ‐ Charges for services ‐ ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ 2,629 Other ‐ ‐ ‐ ‐ Total revenues 3,974 633 4,371 2,530 Expenditures:

Current:

General government ‐ ‐ ‐ ‐ Public safety ‐ ‐ ‐ ‐ Public works ‐ 106 ‐ ‐ Community development ‐ ‐ ‐ ‐ Culture and recreation ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ Debt service:

Principal ‐ ‐ ‐ ‐ Interest and fiscal charges ‐ ‐ ‐ ‐ Total expenditures ‐ 106 ‐ ‐ Excess (deficiency) of revenues
over (under) expenditures 3,974 527 4,371 2,530 Other financing sources (uses):

Issuance of bonds ‐ ‐ ‐ ‐ Payment to bonds refunding escrow ‐ ‐ ‐ ‐ Transfers in 162 69 1,358 4,412 Transfers out (3,504) (777) (14,754) (7,230) Total other financing sources (uses) (3,342) (708) (13,396) (2,818) Net change in fund balances 632 (181) (9,025) (288) Fund balances, beginning of year 2,384 668 15,919 37,941 Fund balances, end of year 3,016$ 487 6,894 37,653 SPECIAL REVENUE FUNDS
114
Mobile Downtown
CSFRA / Rental Home Rent Benefit General
Housing Stabilization Housing Shoreline Assessment Special Committee Ordinance (MHRSO) Successo r Golf Links District Purpose ‐ ‐ ‐ ‐ 1,176 ‐ ‐ ‐ ‐ ‐ ‐ 15 ‐ ‐ ‐ ‐ 290 ‐ 22 ‐ 115 8 286 10 ‐ ‐ ‐ ‐ 3 ‐ 1,497 349 ‐ 4,237 202 9 ‐ ‐ ‐ ‐ 61 ‐ ‐ ‐ ‐ (44) 20 ‐ 1,519 349 115 4,201 2,038 34 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,490 266 ‐ ‐ 400 42 ‐ ‐ ‐ 3,969 ‐ ‐ 10 ‐ ‐ 22 ‐ ‐

‐ ‐
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,500 266 ‐ 3,991 400 42 19 83 115 210 1,638 (8) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 19 ‐ (15) (1) ‐ (230) (1,112) ‐ (15) (1) ‐ (230) (1,093) ‐ 4 82 115 (20) 545 (8) 1,514 239 12,683 135 20,701 244 1,518 321 12,798 115 21,246 236 (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, 2023
(Dollars in Thousands)
Police
Asset Cable Deferred
Forfeitures Grants Television Assessments
Revenues:

Property taxes ‐ ‐ ‐ ‐ Other taxes ‐ ‐ ‐ ‐ Licenses, permits and fees ‐ ‐ ‐ ‐ Use of money and property 1 477 ‐ ‐ Intergovernmental 3 613 ‐ ‐ Charges for services ‐ ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ ‐ Other ‐ ‐ 169 ‐ Total revenues 4 1,090 169 ‐ Expenditures:

Current:

General government ‐ ‐ 174 ‐ Public safety ‐ 212 ‐ ‐ Public works ‐ ‐ ‐ ‐ Community development ‐ 790 ‐ ‐ Culture and recreation ‐ ‐ ‐ ‐ Capital outlay 58 ‐ ‐ ‐ Debt service:

Principal ‐ ‐ ‐ ‐ Interest and fiscal charges ‐ ‐ ‐ ‐ Total expenditures 58 1,002 174 ‐ Excess (deficiency) of revenues
over (under) expenditures (54) 88 (5) ‐ Other financing sources (uses)
:

Issuance of bonds ‐ ‐ ‐ ‐ Payment to bonds refunding escrow ‐ ‐ ‐ ‐ Transfers in ‐ ‐ ‐ ‐ Transfers out ‐ 350 ‐ ‐ Total other financing sources (uses) ‐ 350 ‐ ‐ Net change in fund balances (54) 438 (5) ‐ Fund balances, beginning of year 481 26,766 800 390 Fund balances, end of year 427 27,20 4 795 390 SPECIAL REVENUE FUNDS
116

CAPITAL
PROJECTS FUND
Shoreline Shoreline Shoreline Total
Regional Park Regional Park Regional Park Nonmajor
Community 2011 Community 201 8 Community 2022 Special Storm Drain Governmental Revenue Bonds Revenue Bonds Revenue Bonds Assessments Construction Funds ‐ ‐ ‐ ‐ ‐ 1,176 ‐ ‐ ‐ ‐ ‐ 4,119 ‐ ‐ ‐ ‐ ‐ 290 3 167 ‐ ‐ 7 1,215 ‐ ‐ ‐ ‐ ‐ 5,275 ‐ ‐ ‐ ‐ ‐ 6,294 ‐ ‐ ‐ ‐ ‐ 2,690 ‐ ‐ ‐ ‐ ‐ 145 3 167 ‐ ‐ 7 21,204 ‐ ‐ ‐ ‐ ‐ 174 ‐ ‐ ‐ ‐ ‐ 212 ‐ ‐ ‐ ‐ ‐ 106 ‐ ‐ ‐ ‐ ‐ 2,988 ‐ ‐ ‐ ‐ ‐ 3,969 ‐ ‐ ‐ ‐ ‐ 90 695 920 ‐ ‐ ‐ 1,615 1,004 3,063 355 ‐ ‐ 4,422 1,699 3,983 355 ‐ ‐ 13,576 (1,696) (3,816) (355) ‐ 7 7,628 21,401 ‐ 164 ‐ ‐ 21,565 (21,100) ‐ ‐ ‐ ‐ (21,100) 696 9,784 200 ‐ 16 16,716 (5,801) ‐ ‐ ‐ (33) (33,107) (4,804) 9,784 364 ‐ (17) (15,926) (6,500) 5,968
9 ‐ (10) (8,298) 6,500 ‐ ‐ 45 459 127,869 ‐ 5,968 9 45 449 119,571 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, 2023
(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 95 5 (90) 39 (54) (93) Intergovernmental 4,097 3,969 (128) 3,134 687 (2,447) Charges for services ‐ ‐ ‐ ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ ‐ ‐ ‐ Other ‐ ‐ ‐ ‐ ‐ ‐ Total revenues 4,192 3,974 (218) 3,173 633 (2,540) Expenditures:

Current:

General government:

City manager ‐ ‐ ‐ ‐ ‐ ‐ Public safety:

Police ‐ ‐ ‐ ‐ ‐ ‐ Public works ‐ ‐ ‐ 281 106 175 Community development ‐ ‐ ‐ ‐ ‐ ‐ Culture and recreation:

Community services ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ 281 106 175 Excess (deficiency) of revenues
over (under) expenditures 4,192 3,974 (218) 2,892 527 (2,365) Other financing sources (uses):

Transfers in ‐ 162 162 ‐ 69 69 Transfers out (3,504) (3,504) ‐ (3,163) (777) 2,386 Total other financing sources (uses) (3,504) (3,342) 162 (3,163) (708) 2,455 Net change in fund balances 688$ 632 (56) (271) (181) 90 Fund balances, beginning of year 2,384 668 Fund balances, end of year 3,016$ 487
Gas Tax Other Streets and Transportation
118
Final Final Final
Budget Actual Variance Budget Actual Variance Budget Actual Variance

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,504 4,104 (1,400) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 512 267 (245) 364 (99) (463) 15 22 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,435 1,497 62 ‐ ‐ ‐ ‐ 2,629 2,629 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6,016 4,371 (1,645) 364 2,530 2,166 1,450 1,519 69

‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐
‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    2,019               1,490               529 ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    107                  10                    97 ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    2,126              1,500              626 6,016              4,371              (1,645)             364                  2,530              2,166              (676)                19                    695 ‐                    1,358               1,358              ‐                    4,412               4,412              ‐                    ‐                    ‐ (14,754)           (14,754)           ‐                    (7,230)             (7,230)             ‐                    (15)                   (15)                   ‐ (14,754)           (13,396)           1,358              (7,230)             (2,818)             4,412              (15)                   (15)                   ‐ (8,738)             (9,025)             (287)                (6,866)             (288) 6,578              (691)                4                      695 15,919            37,941            1,514
6,894              37,653            1,518
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, 2023
(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) 19 115 96 Intergovernmental ‐ ‐ ‐ ‐ ‐ ‐ Charges for services 639 349 (290) ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ ‐ ‐ ‐ Other ‐ ‐ ‐ ‐ ‐ ‐ Total revenues 640 349 (291) 19 115 96 Expenditures:

Current:

General government:

City manager ‐ ‐ ‐ ‐ ‐ ‐ Public safety:

Police ‐ ‐ ‐ ‐ ‐ ‐ Public works ‐ ‐ ‐ ‐ ‐ ‐ Community development 349 266 83 1,000 ‐ 1,000 Culture and recreation:

Community services ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ ‐ ‐ Total expenditures 349 266 83 1,000 ‐ 1,000 Excess (deficiency) of revenues
over (under) expenditures 291 83 (208) (981) 115 1,096 Other financing sources (uses):

Transfers in ‐ ‐ ‐ ‐ ‐ ‐ Transfers out (293) (1) 292 ‐ ‐ ‐ Total other financing sources (uses) (293) (1) 292 ‐ ‐ ‐ Net change in fund balances (2) 82 84 (981) 115 1,096 Fund balance, beginning of year 239 12,683 Fund balance, end of year 321 12,798
Mobile Home Rent Stabilization Ordinance
(MHRSO) Housing Successor
120
Final Final Final
Budget Actual Variance Budget Actual Variance Budget Actual Variance

‐ ‐ ‐ 1,095 1,176 81 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 15 15 ‐ ‐ ‐ 156 290 134 ‐ ‐ ‐ ‐ 8 8 260 286 26 8 10 2 ‐ ‐ ‐ 3 3 ‐ ‐ ‐ ‐ 4,410 4,237 (173) 223 202 (21) 50 9 (41) ‐ ‐ ‐ ‐ 61 61 ‐ ‐ ‐ 20 (44) (64) ‐ 20 20 ‐ ‐ ‐ 4,430 4,201 (229) 1,737 2,038 301 58 34 (24)

‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐
‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    596                  400                  196                  132                  42                    90 4,070               3,969               101                  ‐                    ‐                    ‐                    ‐                    ‐                    ‐ 22                    22                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ 4,092              3,991              101                  596                  400                  196                  132                  42                    90 338                  210                  (128)                1,141              1,638              497                  (74)                   (8)                     66 ‐                    ‐                    ‐                    ‐                    19                    19                    ‐                    ‐                    ‐ (380)                (230)                150                  (1,112)             (1,112)             ‐                    ‐                    ‐                    ‐ (380)                (230)                150                  (1,112)             (1,093)             19                    ‐                    ‐                    ‐ (42)                   (20)                   22                    29                    545 516                  (74)                   (8)                     66 135                  20,701            244
115                  21,246            236
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, 2023
(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 ‐ 477 477 Intergovernmental 3 3 ‐ 2,065 613 (1,452) Charges for services ‐ ‐ ‐ ‐ ‐ ‐ Developer fees and contributions ‐ ‐ ‐ ‐ ‐ ‐ Other ‐ ‐ ‐ 200 ‐ (200) Total revenues 3 4 1 2,265 1,090 (1,175) Expenditures:

Current:

General government:

City manager ‐ ‐ ‐ ‐ ‐ ‐ Public safety:

Police 428 ‐ 428 212 212 ‐ Public works ‐ ‐ ‐ ‐ ‐ ‐ Community development ‐ ‐ ‐ 16,542 790 15,752 Culture and recreation:

Community services ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay 58 58 ‐ ‐ ‐ ‐ Total expenditures 486 58 428 16,754 1,002 15,752 Excess (deficiency) of revenues
over (under) expenditures (483) (54) 429 (14,489) 88 14,577 Other financing sources (uses):

Transfers in ‐ ‐ ‐ ‐ ‐ ‐ Transfers out ‐ ‐ ‐ ‐ 350 350 Total other financing sources (uses) ‐ ‐ ‐ ‐ 350 350 Net change in fund balances (483) (54) 429 (14,489) 438 14,927 Fund balances, beginning of year 481 26,766 Fund balances, end of year 427 27,204
Police Asset Forfeitures Grants
122
Final Final Final
Budget Actual Variance Budget Actual Variance Budget Actual Variance

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 7 (7) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 180 169 (11) ‐ ‐ ‐ 10 ‐ (10) 180 169 (11) ‐ ‐ ‐ 24 7 (17)

239                  174                  65                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐
‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ 239                  174                  65                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐ (59)                   (5)                     54                    ‐                    ‐                    ‐                    24                    7                      (17) ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    16                    16 ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    (33)                   (33)                   ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐                    (33)                   (17)                   16 (59)                   (5)                     54                    ‐ ‐                    ‐                    (9)                     (10)                   (1) 800                  390                  459
795                  390                  449
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, 2023

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 pr operty 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 benefits for City employees.

CITY OF MOUNTAIN VIEW
Internal Service Funds
Combining Statement of Net Position
June 30, 2023
(Dollars in Thousands)
Equipment Workers'
Maintenance & Compensation Unemployment
Replacement Insurance Self‐Insurance
Assets:

Current assets:

Cash and investments 28,311 $ 12,551 546 Restricted cash and investments ‐ 273 ‐ Receivables:

Accounts ‐ ‐ ‐ Interest 178 70 3 Due from other funds 1,287 ‐ ‐ Deposits and prepaid items ‐ ‐ ‐ Total current assets 29,776 12,894 549 Total assets 29,776 12,894 549 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 407 44 ‐ Due to other funds ‐ ‐ ‐ Current portion of accrued compensated absences 25 ‐ ‐ Current portion of accrued self‐insurance costs ‐ 2,656 ‐ Total current liabilities 432 2,700 ‐ Noncurrent liabilities:

Noncurrent portion of accrued compensated absences 65 ‐ ‐ Noncurrent portion of accrued self‐insurance costs ‐ 7,461 ‐ Total liabilities 497 10,161 ‐ Net position:

Unrestricted 29,279 2,733 549 Total net position 29,279 $ 2,733 $ 549 $ 126
Total
Liability Retirees' Employee Internal
Self‐Insurance Health Plan Benefits Plan Service Funds
3,298 ‐ 481 45,187 552 ‐ ‐ 825 ‐ 1,685 ‐ 1,685 20 ‐ 3 274 ‐ ‐ ‐ 1,287 346 ‐ ‐ 346 4,216 1,685 484 49,604 4,216 1,685 484 49,604 52 3 3 509 ‐ 1,287 ‐ 1,287 ‐ ‐ ‐ 25 811 ‐ ‐ 3,467 863 1,290 3 5,288 ‐ ‐ ‐ 65 415 ‐ ‐ 7,876 1,278 1,290 3 13,229 2,938 395 481 36,375 2,938$ 395$ 481$ 36,375$ 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
3 (Dollars in Thousands)
Equipment Workers'
Maintenance & Compensation Unemployment
Replacement Insurance Self‐Insurance
Operating revenues:

Charges for services 2,967 $ 2,271 55 Other 180 29 ‐ Total operating revenues 3,147 2,300 55 Operating expenses:

Salaries and related expenses 1,602 ‐ ‐ Insurance claims and premiums ‐ 4,124 18 General and administrative 2,815 156 ‐ Total operating expenses 4,417 4,280 18 Operating income (loss) (1,270) (1,980) 37 Nonoperating revenues:

Investment income 546 174 6 Income (loss) before transfers (724) (1,806) 43 Transfers in 3,618 ‐ ‐ Transfers out (265) ‐ ‐ Change in net position 2,629 (1,806) 43 Net position, beginning of year 26,650 4,539 506 Net position, end of year 29,279$ 2,733 549 128
Total
Liability Retirees' Employee Internal
Self‐Insurance Health Plan Benefits Plan Service Funds
3,633 3,793 50 12,769 22 1,706 ‐ 1,937 3,655 5,499 50 14,706 ‐ 5,488 37 7,127 3,408 ‐ ‐ 7,550 1,272 11 6 4,260 4,680 5,499 43 18,937 (1,025) ‐ 7 (4,231) 61 (24) 2 765 (964) (24) 9 (3,466) 1,250 ‐ ‐ 4,868 ‐ ‐ ‐ (265) 286 (24) 9 1,137 2,652 419 472 35,238 2,938 395 481 36,375 129
CITY OF MOUNTAIN VIEW
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 2023
(Dollars in Thousands)
Equipment Workers'
Maintenance & Compensation Unemployment
Replacement Insurance Self‐Insurance
Cash flows from operating activities:

Cash receipts from customers 3,147 $ 2,300 55 Cash paid to suppliers for goods and services (2,482) (686) (18) Cash paid to employees for services (1,658) ‐ ‐ Claims paid ‐ (1,327) ‐ Net cash provided by (used in) operating activitie
s (993) 287 37 Cash flows from noncapital financing activities:

Transfers in 3,618 ‐ ‐ Transfers out (265) ‐ ‐ Borrowing received from (paid to) other funds (741) ‐ ‐ Net cash provided by (used in) noncapital
financing activities 2,612 ‐ ‐ Cash flows from investing activities:

Interest received (loss) 506 156 5 Net increase (decrease) in cash and cash equivalents 2,125 443 42 Cash and cash equivalents, beginning of year 26,186 12,381 504 Cash and cash equivalents, end of year 28,311$ 12,824 546 Reconciliation of cash and cash equivalents:

Cash and investments 28,311$ 12,551 546 Restricted cash and investments ‐ 273 ‐ Total cash and cash equivalents 28,311$ 12,824 546 Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities:

Operating income (loss) (1,270)$ (1,980) 37 Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Changes in assets and liabilities:

Decrease (increase) in accounts receivable ‐                              ‐                              ‐ Decrease (increase) in deposits and prepaid items ‐                              ‐                              ‐ Increase (decrease) in accounts payable
and accrued liabilities 333                         16                            ‐ Increase (decrease) in accrued
compensated absences (56)                         ‐                              ‐ Increase (decrease) in accrued
self‐insurance costs ‐                              2,251                     ‐ Net cash provided by (used in) operating activities (993)$                     287                          37 Supplemental disclosure of noncash capital and related financing activities:

Receipt of capital assets contributions ‐$ ‐ ‐ Transfer of capital assets ‐$ ‐ ‐ 130

Total
Liability Retirees' Employee Internal
Self‐Insurance Health Plan Benefits Plan Service Funds
3,655 4,779 50 13,986 (5,044) (8) (4) (8,242) ‐ (5,488) (37) (7,183) (205) ‐ ‐ (1,532) (1,594) (717) 9 (2,971) 1,250 ‐ ‐ 4,868 ‐ ‐ ‐ (265) ‐ 741 ‐ ‐ 1,250 741 ‐ 4,603 58 (24) 1 702 (286) ‐ 10 2,334 4,136 ‐ 471 43,678 3,850 ‐ 481 46,012 3,298 ‐ 481 45,187 552 ‐ ‐ 825 3,850 ‐ 481 46,012 (1,025) ‐ 7 (4,231) ‐ (720) ‐ (720) (346) ‐ ‐ (346) (18) 3 2 336 ‐ ‐ ‐ (56)

(205) ‐ ‐ 2,046 (1,594) (717) 9 (2,971) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 131

132

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CITY OF MOUNTAIN VIEW, CALIFORNIA
Custodial Funds
For the Fiscal Year Ended June 30, 2023

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 a c c o u n t s f o r m o n e y r e c e i v e d f r o m e m p l o y e e s f o r t h e 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, 2023
(Dollars in Thousands)
Flexible Center For the
Fire Police Benefits Performing
Union Union Plan Arts Total
Assets:

Due from other funds ‐$ 4 ‐ ‐ 4 Restricted cash and investments ‐ ‐ 157 378 535 Due from other funds ‐ ‐ 10 ‐ 10 Total assets ‐ 4 167 378 549 Liabilities:

Due to other funds 10 ‐ ‐ ‐ 10 Restricted for others (10)$ 4 167 378 539 Net Position:
134
CITY OF MOUNTAIN VIEW
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended June 30, 2023
(Dollars in Thousands)
Flexible Center For the
Fire Police Benefits Performing
Union Union Plan Arts Total
Additions:

Fees and others collected 45 $ 15 65 543 668 Distribution to others 64 40 41 425 570 Change in net position (19) (25) 24 118 98 9 29 143 260 441 (10)$ 4 167 378 539 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, 2023

137
This section of the City’s Annual Comprehensive Financial Repor t 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 help 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,
2014 2015 2016 2017
Governmental activities
Net investment in capital assets 456,410 $    454,939       450,011       446,280 Restricted 171,881       194,850       256,471       319,980 Unrestricted (13,764)       (1) (3,057)          (11,492)        20,918 Total governmental activities net position 614,527       646,732       694,990       787,178 Business‐type activities
Net investment in capital assets 82,850 $      84,170          82,555          80,809 Unrestricted 30,417          32,410          38,244          51,586 Total business‐type activities net position 113,267       116,580       120,799       132,395 Primary government
Net investment in capital assets 539,260$    539,109      532,566       527,089 Restricted 171,881       194,850       256,471       319,980 Unrestricted 16,653         (1) 29,353          26,752          72,504 Total primary government net position 727,794$    763,312      815,789       919,573 (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.
(3) The Unrestricted Net Position restated in fiscal year ended June 30, 2021 due to the implementation of GASB No. 87.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Net Position by Component
Last Ten Fiscal Years
(Dollars in Thousands)
138
Schedule 1
Fiscal Year Ended June 30,
2018 2019 2020
2021
2022 2023
450,851      466,424       467,378        467,855         502,737           555,678 382,993      463,224       516,825        562,840         624,062           626,817 (42,935)       (2) (31,615)        (1,976)            8,772               (3) 66,457             100,514 790,909      898,033        982,227        1,039,467      1,193,256        1,283,009 79,783         86,332          89,969           86,020           87,218             92,486 78,278         82,193          93,692          106,155         124,051           141,036 158,061      168,525       183,661        192,175         211,269           233,522 530,634      552,756       557,347        553,875         589,955           648,164 382,993      463,224       516,825        562,840         624,062           626,817 35,343         (2) 50,578          91,716           114,927          190,508            241,550 948,970      1,066,558     1,165,888     1,231,642      1,404,525        1,516,531 0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
($ 000)
CITY OF MOUNTAIN VIEW, CALIFORNIA
Net Position by Component
Primary Government
Net investment in capital assets Restricted Unrestricted (as restated)
139
Schedule 2
Fiscal Year Ended June 30,
2014 2015 2016 2017
Expenses
Governmental activities
General government 32,517 $       33,782         35,510         38,460 Public safety 51,719 51,946 53,538 57,759
Public works 13,264 30,630 31,052 29,541
Community development 15,013 10,501 11,991 13,564
Culture and recreation 30,623 30,083 30,105 31,275
Interest on long term debt 2,998 2,178 1,860 1,732
Total governmental activities expenses 146,134 159,120 164,056 172,331 Business‐type activities
Water 24,168 26,001 27,809 30,459
Wastewater 13,962 15,433 17,332 18,250
Solid Waste 12,124 11,199 11,945 11,762
Total business‐type activities expenses 50,254 52,633 57,086 60,471 Total primary government expenses 196,388 $     211,753       221,142       232,802 Program Revenues
Governmental activities
Charges for services
General government 24,584 $       26,852         28,846         34,198 Public safety 1,988 1,849 1,643 1,205
Public works 10,276 10,122 3,911 3,165
Community development 14,483 10,487 11,941 14,055
Culture and recreation 5,023 5,313 5,106 5,057
Operating grants and contributions 4,507 4,756 4,297 3,902 Capital grants and contributions 21,859 21,895 31,291 68,541 Total government activities program revenues 82,720 81,274 87,035 130,123 Business‐type activities
Charges for services:

Water 28,887 26,914 27,953 33,847
Wastewater 15,367 15,925 19,730 22,818
Solid Waste 11,864 12,462 13,125 14,053
Operating grants and contributions ‐                     ‐                    ‐                    ‐ Capital grants and contributions 187 552 385 2,443
Total business‐type activities program revenues 56,305 55,853 61,193 73,161 Total primary government program revenues 139,025 $     137,127       148,228       203,284 Net (Expense) Revenue
Governmental activities (63,414) $      (77,846)        (77,021)        (42,208) Business‐type activities 6,051 3,220 4,107 12,690
Total primary government net expense (57,363) $      (74,626)        (72,914)        (29,518) (1) California Water and Wastewater Arrearage Payment Program funding received in Fiscal Year 2021‐22 applied to delinquent water and wastewater bills during the COVID‐19 pandemic.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(Dollars in Thousands)
140
Schedule 2
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023
44,602 46,797 48,167 51,531 50,952 57,508 66,688 70,435 76,853 77,385 62,335 87,425 36,057 35,195 40,789 39,487 42,119 51,273 18,206 18,859 20,423 17,143 15,726 21,303 35,698 35,619 58,221 35,164 33,840 40,854 1,633 3,971 4,278 4,176 4,179 4,303 202,884 210,876 248,731 224,886 209,151 262,666 35,101 35,868 37,522 36,981 32,425 35,284 17,294 19,526 20,109 21,848 22,359 22,472 13,235 13,682 15,077 13,573 12,543 15,255 65,630 69,076 72,708 72,402 67,327 73,011 268,514 279,952 321,439 297,288 276,478 335,677 39,415 53,704 39,191 43,087 59,868 54,643 1,333 1,407 1,270 801 823 1,038 3,546 3,906 2,916 3,397 3,553 2,333 20,485 18,266 15,229 13,123 14,352 13,149 5,315 5,741 4,993 4,903 6,664 7,841 3,265 5,111 6,637 4,572 20,073 15,452 68,479 62,861 81,176 56,217 94,132 35,641 141,838 150,996 151,412 126,100 199,465 130,097 40,571 34,844 38,092 38,205 36,373 36,760 22,369 23,513 25,850 22,962 27,347 29,965 14,870 15,588 15,837 14,731 14,967 15,693 ‐ ‐ ‐ ‐ 546 (1) 4 12,761 2,636 5,014 5,033 9,465 10,987 90,571 76,581 84,793 80,931 88,698 93,409 232,409 227,577 236,205 207,031 288,163 223,506 (61,046) (59,880) (97,319) (98,786) (9,686) (132,569) 24,941 7,505 12,085 8,529 21,371 20,398 (36,105) (52,375) (85,234) (90,257) 11,685 (112,171) 141
Schedule 2
Fiscal Year Ended June 30,
2014 2015 2016 2017
General Revenues and Other Changes in Net Position
Governmental activities
Taxes:

Property taxes 62,601 $      64,954 71,563 86,373
Sales taxes 16,935 19,773 21,401 21,829
Transient occupancy ta
x 5,595 6,559 6,591 7,043
Utility users tax 7,335 7,988 9,898 8,573
Nonregulatory franchise and business 4,633 4,793 4,954 4,997 Intergovernmental revenue 209 209 211 219
Investment income 3,870 4,944 8,551 1,314
Other 1,091           575 1,724 2,859
Transfers 739 256 386 1,189
Total government activities 103,008 110,051 125,279 134,396 Business‐type activities
Investment income 394 349 498 95
Transfers (739) (256) (386) (1,189)
Total business‐type activities (345) 93 112 (1,094)
Total primary government 102,663$   110,144      125,391       133,302 Change in Net Position
Change in net position before extraordinary
and special items:

Governmental activitie
s 39,594$ 32,205 48,258 92,188
Business‐type activities 5,706 3,313 4,219 11,596
Total primary government 45,300 35,518 52,477 103,784 Special items:

Capital assets contributed from Successor Agenc
y 16,679 ‐ ‐ ‐ Land held contributed from Successor Agency 6,250 ‐ ‐ ‐ Change in net position 68,229$ 35,518 52,477 103,784 CITY OF MOUNTAIN VIEW, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(Dollars in Thousands)
142
Schedule 2
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023
92,478 95,420 107,192 119,678 128,861 143,153 20,713 25,058 19,792 18,284 23,456 25,394 7,057 7,051 5,602 1,918 4,437 9,522 8,136 7,850 7,870 7,654 8,717 9,672 5,364 5,549 7,886 9,408 11,784 11,789 228 219 245 242 281 270 1,459 26,411 33,613 1,056 (14,108) 23,594 ‐ ‐ ‐ ‐ ‐ ‐ (588) (554) (687) (9) 47 (1,072) 134,847 167,004 181,513 158,231 163,475 222,322 137 2,405 2,364 (24) (2,230) 783 588 554 687 9 (47) 1,072 725 2,959 3,051 (15) (2,277) 1,855 135,572 169,963 184,564 158,216 161,198 224,177 73,801 107,124 84,194 59,445 153,789 89,753 25,666 10,464 15,136 8,514 19,094 22,253 99,467 117,588 99,330 67,959 172,883 112,006 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 99,467 117,588 99,330 67,959 172,883 112,006 143
Schedule 3

Fiscal Year Ended June 30,
2014 2015 2016 2017
General Fund
Nonspendable 3,276 $         1,847            523               541 Restricted ‐                     ‐                     ‐                     410 Committed 47,771          53,622          53,399          58,655 Assigned 1,498            1,294            1,860            2,094 Unassigned 36,880 44,395 52,459 56,979
Total General Fund 89,425 $       101,158        108,241        118,679 All Other Governmental Funds
Nonspendable 67 $              69 57 64
Restricted 218,699 228,910 256,281 318,281
Committed ‐                     930              4,149 17,027 Unassigned (18)                (18) (3) ‐
Total all other governmental funds 218,748$    229,891       260,484        335,372 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,
2018 2019 2020 2021 2022 2023
407              519               3,757           4,292            835              1,960 420              424               430               437               436               445 68,483         74,881          83,827          83,453          96,704         100,554 2,202           2,819            4,604            4,044            5,920            6,479 55,913         64,539          59,394          67,792          93,390         127,142 127,425       143,182        152,012        160,018        197,285        236,580 60                 72                 17,051         17,060         72                 75 382,132       532,282        586,008        632,852        696,443        696,079 10,553         8,175            13,318         20,869          36,067          34,634 (55)               (128)             ‐                     ‐                     ‐                     ‐ 392,690       540,401        616,377        670,781        732,582        730,788 0 50,000
100,000
150,000
200,000
250,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
($ 000)
CITY OF MOUNTAIN VIEW, CALIFORNIA
Fund Balance for General Fund
Nonspendable Restricted Committed Assigned Unassigned
145
Schedule 4

2014 2015 2016 2017 2018
Revenues
Taxes 98,806 $ 107,135 116,783 131,921 136,206 Licenses, permits and fees 23,677 31,421 28,136 12,554 17,202 Fines and forfeitures 1,068 920 697 872 912 Use of money and property 14,878 14,932 19,730 17,508 20,228 Intergovernmental 7,840 6,255 6,415 4,590 5,706 Charges for services 33,810 24,323 27,882 27,330 30,077 Developer fees and contributions ‐ ‐ ‐ 57,628 (1) 60,239 Other 3,212 5,091 7,681 6,233 7,055
Total Revenues 183,291 190,077 207,324 258,636 277,625
Expenditures
Current:

General government 30,475 31,714 34,269 37,379 43,432 Public safety 50,517 52,457 54,790 56,893 65,276 Public works 9,340 10,098 11,924 12,852 16,229 Community development 14,494 10,275 11,941 13,304 18,099 Culture and recreation 21,904 22,899 23,979 24,707 29,257 Capital outlay 14,148 28,080 17,914 16,495 32,688 Debt service:

Principal 5,296 5,535 7,187 4,782            3,355
Interest and fiscal charges 2,895 2,056 1,936 1,782            1,673 Total Expenditures 149,069 163,114 163,940 168,194 210,009 Excess (deficiency) of revenues
over (under) expenditures 34,222 26,963 43,384 90,442 67,616 Other Financing Sources (Uses)
Sale of capital assets 1,469            1,910 1,950 2,894            1,821 Issuance of bond
s 12,135          ‐                    ‐                    ‐                    ‐ Bond premium ‐                    ‐                    ‐                    ‐                    ‐ Payment to refund bond escrow agent (12,035)        ‐                    ‐                    ‐                    ‐ Lease and SBITA financing ‐                    ‐                    ‐                    ‐                    ‐ Transfers in 34,028 33,286 42,300 57,452          96,599 Transfers (out) (38,391) (39,283) (49,958) (65,462)        (99,972) Total other financing sources (uses) (2,794) (4,087) (5,708) (5,116) (1,552) Net Change in fund balances 31,428 $      22,876 37,676 85,326 66,064 Debt service as a percentage of
noncapital expenditures 6.2% 5.6% 6.1% 4.3% 2.8%
(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
.
2019 2020 2021 2022 2023
146,048       149,433       160,404       182,055       197,855 14,688          12,368          12,521          11,867          11,835 979               768               312               316               506 45,389          52,008          22,833          18,359          54,272 7,062            6,397            8,251            22,079          16,470 32,594          30,479          27,642          32,495          32,864 52,291          66,709          45,890          85,585          29,559 17,052          6,903            7,509            15,448          7,487 316,103       325,065       285,362       368,204       350,848 44,284          46,303          49,541          53,605          55,564 65,968          69,665          71,579          75,243          78,556 16,400          16,875          18,548          21,245          23,339 17,988          20,062          16,828          17,981          21,305 28,315          52,912          27,192          30,584          33,219 39,817          24,490          29,699          74,108          93,942 3,453            1,927            1,997            2,135            2,403 2,847            4,533            4,437            4,439            4,599 219,072       236,767
219,821       279,340       312,927
97,031          88,298          65,541          88,864          37,921 ‐                    ‐                    ‐                    ‐                    ‐ 63,800          ‐                    ‐                    ‐                    21,565 6,416            ‐                    ‐                    ‐                    ‐ ‐                    ‐                    ‐                    ‐                    (21,100) ‐                    ‐                    ‐                    6,549            4,790 82,995          143,720       58,910          114,413       131,160 (86,774)        (147,212)      (62,041)        (108,553)      (136,835) 66,437          (3,492)          (3,131)          12,409          (420) 163,468       84,806          62,410          101,273       37,501

3.5% 3.0% 3.3% 3.0% 3.0%
Fiscal Year Ended June 30,
147
Schedule 5
Real Property
Fiscal Residential Commercial Industrial
Year Property Property Property Other
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 2022‐23 23,103,147         8,136,153 5,125,851 3,454,199 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)
2,527,347 (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 (1,487,266)          37,581,597 1.00%
2,873,920 (1,643,803)          41,049,467 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
45,000,000
($ 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 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 2022‐23 1.00 1.00 0.0559 0.0559 0.0854 0.1479 0.0090 0.0057 1.1470 1.2185 Source:  County of Santa Clara
(1) Overlapping rates are those of local and county governments that apply to property owners within th e
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 2022‐23 Fiscal Year 2013‐14
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 $ 6,969,098 1 17.0% $ 1,870,460 1 10.0% Baccarat Shoreline LLC 462,570 2 1.1% ‐ ‐ Nor Cal Plymouth Realty LLC 225,568 3 0.5% ‐ ‐ Sobrato Interests 351,323 4 0.9% ‐ ‐ Microsoft Corporation 164,653 5 0.4% 130,595 5 0.7% P A Charleston Road LLC 120,087 6 0.3% 103,487 6 0.5% Richard T. Peery Trustee 117,359 7 0.3% 134,762 4 0.7% Intuit Inc. 306,277 8 0.7% 121,337 8 0.6% Orion V Sac Village Office Property LLC 509,648 9 1.2% ‐ ‐ LinkedIn Corporation 513,650 10 1.3% ‐ ‐ HCP Life Science REIT Inc. ‐ ‐ 331,389 2 1.8% Mission West Shoreline LLC ‐ ‐ 183,896 3 1.0% Richard M. & Beverly Salado Trustee ‐ ‐ 77,013 7 0.4% 400 Castro St. Inc. ‐ ‐ 56,598 9 0.3% SIC‐Mountain Bay Plaza LLC ‐ ‐ 52,517 10 0.3% Subtotal $ 9,740,233 23.7% $ 3,062,054 16.3%

Fiscal Year 2022‐23 Total Net Assessed Valuation: $ 41,049,467 Fiscal Year 2013‐14 Total Net Assessed Valuation: $ 18,759,660 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 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% 2021‐22 128,861 128,861 100% ‐ 128,861 100% 2022‐23 143,153 143,153 100% ‐ 143,153 100% 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 Lease Assessment
Year Bonds Participation Loan Liabilities Debt
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            ‐                   ‐                  6,499            ‐ 2022‐23 89,885            ‐                   ‐                  3,817            ‐ 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 2022‐23 is not available until May of 2024. 154
Schedule 9
WasteWater Total Percentage
Water Direct Primary of Personal Per
Bonds (1) Financing Government Income (2) Capita (2)
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 1.13% 1.31
5,445 8,419           105,116 0.90% 1.25
4,735 7,840           102,460 (4) 1.23
Business‐Type
Activities
0 20,000
40,000
60,000
80,000
100,000
120,000
2013‐14 2015‐16 2017‐18 2019‐20 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)
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
2022‐23 89,885            89,885 0.22% 1.08
(1) Per capita numbers are restated as updated population numbers are available. (2) Total bonds outstanding increased due to issuance of 2018 SRPC Revenue Bonds, Series A and Series B.
156
Schedule 11

CITY OF MOUNTAIN VIEW, CALIFORNIA
Direct and Overlapping Governmental Activities Debt
As of June 30, 2023
2022‐23 Assessed Valuation:  $41,049,466,869 (A)
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/23 % Applicable (1) D ebt 6/30/23 Santa Clara County $1,041,125,000 6.632% $  69,047,410 Foothill‐DeAnza Community College District 603,653,754 18.810 1 13,547,271 Fremont Union High School District 771,685,088 0.459 3,542,035 Mountain View‐Los Altos Union High School District 250,148,487 58.212 145,616,437 Los Altos School District 134,380,000 17.353 23,318,961 Mountain View School District 1,105,000 87.013 961,494 Sunnyvale School District 258,790,820 1.010 2,613,787 Mountain View‐Whisman School District 361,720,000 91.724 331,78 4,053 Whisman School District 4,377,383 98.638 4,317,763
El Camino Hospital District 105,480,000 33.174 34,991,935 Midpeninsula Regional Open Space District 82,680,000 10.775 8,9 08,770 Shoreline Regional Park Community 84,445,000 100.000 84,445,000 Santa Clara Valley Water District Benefit Assessment District 38,900,000 6.632     2,579,848 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $825,674,764

DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Santa Clara County General Fund Obligations $1,120,404,570 6.632% $  74,305,231 Santa Clara County Pension Obligation Bonds 329,741,844 6.632 2 1,868,479 Santa Clara County Board of Education Certificates of Participation 935,000 6.632 62,009 Foothill‐DeAnza Community College District Certificates of Participation 20,645,000 18.810 3,883,325 Mountain View‐Los Altos Union High School District General Fund Obligations 1,810,475 58.212 1,053,914 Los Altos School District Certificates of Participation 1,457,4 88 17.353 252,918 City of Mountain View 0 100.000 0
Midpeninsula Regional Park District General Fund Obligations 91 ,570,600 10.775 9,866,732 Santa Clara County Vector Control District Certificates of Participation 1,230,000 6.632          81,574 TOTAL OVERLAPPING GENERAL FUND DEBT $111,374,182
Less:  Santa Clara County supported obligations        69 7,701 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $110,676 ,481

TOTAL DIRECT DEBT $93,702,464 (3) (4)
TOTAL GROSS OVERLAPPING DEBT $937,048,946
TOTAL NET OVERLAPPING DEBT $936,351,245

GROSS COMBINED TOTAL DEBT $942,488,708 (2) (3)
NET COMBINED TOTAL DEBT $941,791,007 (2) (3)

(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non‐bonded capital lease obligations.
(3) Includes unamortized premium for direct debt $5,439,762. (4) Includes lease liabilities

Ratios to 2022‐23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt ......................... 2.01% Total Direct Debt ............................................................. 0.23% Gross Combined Total Debt ................................................... 2.30% Net Combined Total Debt ...................................................... 2.29%

Source: California Municipal Statistics, Inc.
(A)The assessed valuation number provided by Santa Clara County Assessor.

157
Schedule 12
2013‐14 2014‐15 2015‐16 2016‐17
Debt limit $ 2,813,949 3,004,005 3,363,871 3,784,938
Total net debt applicable to limit ‐                       ‐                       ‐                       ‐ Legal debt margin $ 2,813,949 3,004,005 3,363,871 3,784,938 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, 2023 (1) $ 41,049,467
Debt limit: 15% of assessed value 6,157,420
Less total bonded debt, general obligation ‐
Legal debt margin (2) $ 6,157,420
2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23
4,204,700 4,410,795 4,786,186 5,216,369 5,637,240 6,157,420 ‐ ‐ ‐ ‐ ‐ ‐ 4,204,700 4,410,795 4,786,186 5,216,369 5,637,240 6,157,420

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 (1) Costs (2) Revenues Principal Interest Coverage 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 13,883 440 184 22.2
2022‐23 40,246            30,123 10,123 460 166 16.2
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Gross revenues include developer capital contribution fees, non‐operating interest earnings and transfers in. (2) Operating costs exclude depreciation or amortization.

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
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 2022‐23 ‐                              ‐                       ‐                      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 (1) Coverage
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
2022‐23 62,947              1,615 4,422 10.4
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Includes other fiscal charges and other related costs.

CITY OF MOUNTAIN VIEW, CALIFORNIA
Debt Pledged‐Revenue Coverage
Last Ten Fiscal Years
(Dollars in Thousands)
Revenue Bonds‐Shoreline Regional Park Community
Debt Service
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
($ 000)
Revenue Bonds ‐ Shoreline Regional Park Community
Revenue Debt Service
162
Schedule 13
Less: Net
Fiscal Gross Operating Available
Year Revenues (1) Costs (2) 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 10,074 560 292 11.8
2022‐23 35,456            18,774 16,682 579 273 19.5
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Gross revenues include developer capital contribution fees, non‐operating interest earnings and transfers in. (2) Operating costs exclude depreciation or amortization.

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
$14,000
$16,000
$18,000($ 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) 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 83,856 6,873 11,655,984 139 7,294 2.3%
2022‐23 83,601 6,853 (4) (4) 7,146 3.9%
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 restated. (3) Per capita personal income and unemployment rate are for Santa Clara County.

Personal income is the product of the countywide per capita amount and the City's population. (4) Personal income data for Fiscal Year 2022‐23 is not available until May of 2024. 164
Schedule 15

Fiscal Year 2022‐23 Fiscal Year 2013‐14
Estimated Percentage Estimated Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Google LLC 30,600 1 22.8% 11,332 1 10.1% El Camino Hospital 3,200 2 2.4% 2,630 4 2.4% Intuit Inc. 3,060 3 2.3% 1,707 5 1.5% LinkedIn 2,500 4 1.9% 3,000 3 2.7% Microsoft Corporation 2,300 5 1.7% 1,700 6 1.5% Pure Storage, Inc. 1,600 6 1.2% ‐ ‐ Nuro, Inc. 1,000 7 0.7% ‐ ‐ Waymo LLC 900 8 0.7% ‐ ‐ Synopsys Inc. 900 8 0.7% 1,031 8 0.9% MV Whisman School District 600 10 0.4% ‐ ‐ Symantec/Verisign ‐ ‐ 3,444 2 3.1% Palo Alto Medical Foundation ‐ ‐ 1,034 7 0.9% City of Mountain View ‐ ‐ 568 9 0.5% Omnicell ‐ ‐ 500 10 0.5% Subtotal 46,660 34.8% 26,946 24.1%
Total City Daytime Population 134,100 112,000

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,
2014 2015 2016 2017
Function
General government 74.75 74.75 75.40 78.65
Public safety:

Fire:

Firefighters and Safety Officers 74.00 74.00 74.00 74.00 Civilians 5.60 5.60 5.60 4.60
Police:

Sworn Police 96.00 96.00 96.00 95.00
Civilians 44.00 44.00 44.00 45.50
Public works 54.05 54.55 56.20 57.70
Community development 34.00 34.00 38.75 41.75
Culture and recreation:

Community Services 81.75 82.75 83.75 84.25
Library 30.00 30.00 30.00 29.75
Water 37.65 37.50 38.25 38.25
Wastewater 21.50 21.45 21.60 21.60
Solid Waste 14.95 14.65 14.70 14.70
Total Regular Positions 568.25 569.25 578.25 585.75
Limited‐Period Positions 6.25 10.00 12.25 17.50
Total 574.50 579.25 590.50 603.25
Source: City of Mountain View
166
Schedule 16
.

Adopted for Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023

80.65 83.65 91.65 95.15 99.15 104.60

73.00 73.00 71.00 71.00 71.00 71.00

5.60 7.60 8.60 8.60 8.60 8.60

95.00 95.00 96.00 96.00 95.00 95.00

46.00 46.00 47.50 47.50 47.50 47.50

62.40 63.90 66.90 68.90 69.90 77.00

49.00 51.00 52.00 54.00 55.00 60.00

84.50 88.50 90.50 90.50 90.50 91.25

29.75 30.75 30.75 30.75 30.75 31.75

38.35 37.35 37.35 37.85 37.85 39.70

21.70 21.70 22.70 22.70 22.70 23.50

14.80 14.80 14.80 14.80 14.80 16.10
600.75 613.25 629.75 637.75 642.75 666.00

19.00 22.50 20.00 23.50 19.50 13.25
619.75 635.75 649.75 661.25 662.25 679.25
0 100
200
300
400
500
600
700
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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 2014 2015 2016 2017
Public safety:

Fire:

Fire calls for service 5,526 5,703 5,955 6,117
Primary fire inspections conducted 957 1,857 (1) 2,844 (2) 1,972 (3) Environmental safety inspections conducted 1,851 1,769 1,641 1,572 Police:

Communication Center calls answere
d 85,175 90,559 91,826 91,782
Police calls for service 61,525 63,093 48,875 (4) 48,515 Law violations:

Part I and Part II crime
s 4,384 4,369 4,901 4,689
Physical arrests (adult and juvenile) 2,320 2,262 1,978 2,218 Traffic violations 13,411 13,745 11,821 8,233
Parking violations 8,235 5,990 6,733 8,149
Public works
Street resurfacing (miles) 1.49 ‐ (5) 2.40 6.80
Potholes repaired (square feet) 821 1,439 1,800 3,271
Culture and recreation:

Community Services:

Recreation class participant
s 8,558 9,438 8,697 8,412
Performing Arts Center performances 399 394 399 437
Library:

Volumes in Collection (thousands
) 337 337 326 329
Total Volumes Borrowed (thousands) 1,685 1,564 1,416 1,339 Water
Water service connections 17,781 17,858 17,516 18,004
Water main breaks 895 1 0
Average daily consumption (thousands of gallons) 10,475 8,713 6,917 7,807 Wastewater
Storm drain inlets 2,776 2,829 3,030 3,086
Sewer service connections 17,377 17,461 16,906 (6) 16,906 Sewer main blockages 51 5 4 3
Average daily treatment (thousands of gallons) 6,980 6,750 6,235 6,285 Solid Waste
Landfilled (tons per year) 44,878 46,865 (8) 40,961 40,092 Recyclables Processed (tons per year) 30,411 35,465 40,499 41,649 Source: City of Mountain View
(1) 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). (2) Beginning in the Fiscal Year ended June 30, 2016, includes total multi‐family housing inspections completed by FEPD not previously accounted for.
(3) Lower due to vacancy and turnover in personnel, resulting in reduced staffing. (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 in Fiscal Year ended June 30, 2019 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

2018 2019 2020 (10) 2021 (10) 2022 (10) 2023
6,049 6,188 6,120 5,604 6,741 7,979
1,520 (1) 2,262 2,498 1,401 1,321 1,288
1,613 1,363 1,718 1,605 1,841 1,540
92,011 83,400 73,201 93,101 107,424 110,453
44,188 44,725 40,254 34,953 39,194 41,151
4,914 5,335 4,873 4,241 4,488 4,416
2,119 1,970 1,732 1,147 841 1,125
3,563 4,270 3,073 1,307 1,131 1,280
12,506 12,144 6,761 559 2,019 6,047

2.97 3.93 9.62 2.25 ‐
(5) ‐ (5)
1,071 3,724 2,025 780 684 4,617
8,501 9,023 2,606 2,356 8,709 11,159
555 504 276 274 396 397
302 308 305 283 273 260
1,177 1,253 961 742 1,232 1,310
18,199 18,341 18,572 18,747 18,838 18,920
2871 5 8 1 3
8,395 8,341 8,823 8,950 8,265 7,574
3,086 3,086 3,086 3,242 3,242 3,253
16,863 (7) 16,990 17,373 17,373 17,373 17,428
666 9 85
7,005 7,295 7,598 6,400 6,130 6,471
41,320 47,578 (9) 42,667 35,067 31,506 28,314
41,381 42,248 36,751 35,961 34,484 34,185
Fiscal Year Ended June 30,
169
Schedule 18
2014 2015 2016 2017
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 4,120 4,120
Traffic Signals 83 83 83 83
Culture and recreation:

Community services:

City parks (2) 39 41 42 42
City parks acreage (2) 196.35 199.12 212.32 (3) 212.32
Playgrounds (2) 30 30 30 30
City trails (2) 5555
City trails miles (2) 9.26 (4) 9.26 9.26 9.26
Roadway landscaping acreage 120.25 120.25 120.25 120.25 Regional park acreage (including trails) (2) 796.13 (6) 796.13 784.13 (3) 784.13 Regional park facilities:

Golf courses (18 holes
) 1111
Boathouse 1111
Sailing lake acreage 50 50 50 50
Clubhouse and banquet facility 1111
Historic Buildings 1113 (7)
Community gardens 2222
Community centers 1111
Senior centers 1111
Teen Center 0001 (8)
Sports centers 2222
Performing arts centers 1111
Swimming pools 2222
Tennis courts 35 35 35 35
Baseball/softball diamonds 6688
Soccer/football fields 14 14 16 16
Library:

City Libraries 1111
Water
Miles of water mains 176 176 176 177
Fire hydrants 2,074 2,091 2,118 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 109 109 109 109
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)
Includes 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
.
2018 2019 2020 2021 2022 2023
555555
111111
38 38 38 38 38 38
140.2 140.1 (1) 140.1 140.1 140.1 140.1
4,120 4,270 4,270 4,270 4,270 4,270
85 85 86 87 88 91
42 42 42 42 44 44
212.32 212.32 212.32 212.59 215.80 215.80
30 30 30 33 35 35
555555

9.71 (5) 9.71 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
111111
111111
50 50 50 50 50 50
111111
333333
233333
111111
111111
111111
222222
111111
222222
35 35 35 35 35 35
888888
16 16 16 16 16 16
111111
188 188 188 188 188 188
2,136 2,136 2,136 2,117 2,117 2,118
38,530 38,530 38,530 38,530 38,530 38,530
158 157
(9) 157 157 157 157
109 109 109 114 114 114
000000
15,100 15,100 15,100 15,100 15,100 15,100
Fiscal Year Ended June 30,
171
172
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173
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, 2023
Prepared by the
FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT

174
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MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
For the Fiscal Year Ended June 30, 2023
175
Table of Contents
Page
Indep
endent 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 .......................................................................................................... 223 Schedule of the Shoreline Community Pension Contributions .......................................................... 224 Schedule of the Shoreline Community’s Proportionate Share of the Net OPEB Liability .............................................................................................................. 225 Schedule of the Shoreline Community OPEB Contributions .............................................................. 226 Other Supplementary Information:

Shoreline Regional Park Community Fund:

Combining Balance Sheet ................................................................................................................... 228 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................... 229 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........................................................ 231

176
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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 st atements 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 ended June 30, 2023, 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, 2023, 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 (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are requi red to be independent of the Shoreline Community and to meet our other ethical responsibilities, in ac cordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the 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 to 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.

178
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 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 events, 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.

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 management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and co mparing the information for con sistency with management’s responses to our inquiries, the basic financial statements, and other knowle dge we obtained during our audit of the basic financial statements. We do not express an opinion or provide a ny assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

179
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 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 s ubjected 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 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 GAAS.

In our opinion, the Shoreline Regional Park Community Fun d combining fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by
Government Auditing Standards
In
accordance with Government Auditing S tandards, we have also issued our report dated November 27, 2023, on our consideration 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 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 Shoreline Community’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Shoreline Community’s internal control over financial
reporting and compliance.

Walnut Creek, California
November 27, 2023

180
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181
Mountain View Shoreline Regional Park Community
Management’s Discussion and Analysis (MD&A) (Unaudited) for the Fiscal Year Ended June 30, 2023

This section of the Mountain View Shoreline Regional Park Commu nity’s (Shoreline Community or SRPC) basic financial statements presents a narrative overvi ew and analysis of the financial activities of the Shoreline Community for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjuncti on with additional information that has been furnished in the financial statements and our tra nsmittal 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 values. For Fiscal Year 2022‐23, property ta xes increased by $7.5 million or

13.4%. Fiscal Year 2022‐23 financial highlights include the following:

• The Shoreline Community’s asse ts and deferred outflows of resources exceeded its liabilities and deferred inflows of resources for the fiscal ye ar ended June 30, 2023, by $98.6 million (net position). Of this amount, $18.5 million re flects its net investment in capital assets, $71.1 million is restricted for Shoreline Community indebtedness, and $9.0 million is unrestricted.

• The Shoreline Community’s total net position increased by $15 .8 million during the fiscal year compared to the prior fiscal year increase of $54.5 millio n. The significant change is primarily due to one‐time developer fees collected for Google Landings Office Development project in the prior fiscal year and less capital contributions from the City in this year.

• Revenues of $73.7 million, incl uding program revenues and general revenues, excluding net transfers, are $29.7 million less than the prior fiscal year. The change is primarily due to less capital contributions from the City during the fiscal year and one‐time developer fees collected in the prior fiscal year, offset by higher property taxes revenue.

• Shoreline Community expenses are $36.6 million, an increase o f $2.0 million over the prior fiscal year.

• Governmental fund balances for the fiscal year ended June 30, 2023 increased $9.7 million to $92.3 million, primarily due to higher property tax revenues and excess of revenues over expenditures.

• Governmental fund revenues are $64.5 million for the fiscal y ear ended June 30, 2023, a decrease of $4.6 million from the prior fiscal year, primarily from the reasons stated above. 182

• Governmental fund expenditure s are $34.5 million for the fiscal year ended June 30, 2023, an increase of $1.3 million from the prior fiscal year’s expenditures of $33.2 million.

• The Shoreline Community’s total noncurrent liabilities decrea sed by $1.4 million compared with the prior fiscal year, primarily due to the annual principal payment of bonds.

OVERVIEW OF THE BASIC FINANCIAL STATEMENTS

T h i s d i s c u s s i o n a n d a n a l y s i s a r e i n t e n d e d t o s e r v e a s a n i n t r o duction to the Shoreline Community’s component unit basic financial statements. The Shoreline Community’s component unit basic financial st atements comprise three components: (1) government‐wide financial statements; (2) fund financial statements; and (3) not e s t o t h e b a s i c f i n a n c i a l statements. This report also contains required and other supplementary information.

Government‐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 th e 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 informatio n about groupings of related accounts, which are used to maintain control over resources tha t 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 used to account for essentially the same functions reported as governmental activities in the g overnment‐wide financial statem ents. However, unlike the government‐wide financial statements, governmental fund financi al statements focus on near‐ term inflows and outflows of spendable resources as well as on balances of spendable resources 1 83
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.

The Shoreline Community has three individual governmental funds . Information is presented separately in the governmental funds Balance Sheet and in the g overnmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the SRPC Fund, SRPC 2011 Revenue Bonds Fund, SRPC 2018 Revenue Bonds Fund, and SRPC 2022 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
T
he 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.
184
Analysis of Net Position

A summary of the Shoreline Community’s net position is as follows:

2023 2022
Assets:

Current and other assets $       98,102       87,730
Capital assets         101,468       96,851
Total assets         199,570     184,581
Deferred outflows of resources:

Pension items             2, 050            869
OPEB items                  58            127
Total deferred outflows of resources             2, 108            996 Liabilities:

Current and other liabilities 7, 500 6,950 Noncurrent liabilities 89,885 91,252
Net pension liability 5, 582 2,788 Net OPEB liability 58 127 Total liabilities 103,025 101,117
Deferred inflows of resources:

Deferred inflows related to pension 56 1,692 Net Position:

Net investment in capital assets 18,508 12,099 Restricted for Shoreline Community indebtedness 71,086 61, 254 Unrestricted 9, 003 9,415
Total net position $ 98,597 82,768
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 $98.6 million at the end of th e fiscal year. The components of net position are as follows:

• Net investment in capital assets was $18.5 million, which was an increase of $6.4 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 ne t position is $71.1 million in Restricted for Shoreline Co mmunity Indebtedness, which may b e used to meet the Shoreline Community’s current and future obligations. The balance increased by $9.8 million from the prior fiscal year.

The Shoreline Community’s current and other assets increased $10.4 million while net position increased $15.8 million compared to the prior fiscal year, prim arily due to revenues exceeding expenses by $37.2 million and net transfers out to the City of $20.7 million.

186
Statement of Activities

A summary of the Shoreline Community’s changes in net position is as follows:

2023 2022
Revenues:

Program revenues $ 433 14,855
General revenues:

Taxes 62,947 55,486
Capital contributions 9,212 34,262 Investment income 1,152 (1,197) Total revenues 73,744 103,406
Expenses:

General government             22,585           21,335 Public safety                  151                130
Public works               2,191             1,926
Community development                  461                311 Culture and recreation               7,054             6,744 Interest on long‐term debt               4,126             4,073 Total expenses             36,568           34,519
Increase in net position before transfers             37,176            68,887 Transfers (net)            (20,748)          (14,001)
Transfer of capital assets
to the City of Mountain View                 (599)                (398) Change in net position             15,829           54,488 Beginning net position             82,768           28,280 Ending net position $         98,597           82,768 Condensed Statement of Activities
(Dollars in Thousands)

1 87
The major component of the Shoreline Community’s current fiscal year revenues is $62.9 million of property taxes. This is an increase of $7.5 million when compared to the prior fiscal year due to changes in the commercial vacancy rate and assessed values. Program revenues were $433,000 , a decrease of $14.4 million from the prior fiscal year. This decrease was due primarily to one‐time developer fees and contributions of $14.4 million received during the prior fiscal year for the Google Landings Office Development Project. Capital co ntributions decreased by $25.1 million due to property acquisition for the Plymouth Street Rea lignment capital project in the prior fiscal year. Investment earnings were $1.2 million, an increase of $2.3 million compared to the prior fiscal year, due to an increase in fair value of the investment portfolio.

Expenses totaling $36.6 million increased $2.1 million when com pared to the prior fiscal year.

This was attributable primarily to increases in general government.

The change in net position is an increase of $15.8 million comp ared to the prior fiscal year increase of $54.5 million. The difference is due to the items mentioned above, notably the decreases in developer fees collected 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 Community uses fund accounting to 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, 2023, the Shoreli ne Community’s funds reported c ombined fund balances of $92.3 million, an increase of $9.7 million from the prior fiscal year. The Committed Fund Balance decreased by $514,000 while the R estricted Fund Balance increased by $10.2 million when compared to the prior fiscal year. The increase in the Restric ted Fund Balance is mainly due to higher property tax revenues which exceed expenditures as previously noted.

Revenues for the fiscal year ended June 30, 2023 totaled $64.5 million, a decrease of $4.6 million, or 6.7%, when compared to the prior fiscal year. The decrease is primarily due to decreases in developer fees collected offset by increases in property taxes during the fiscal year. Expenditures totaling $34.5 million were $1.3 million higher compared to the prior fiscal year.

The SRPC Fund receives tax revenues on property within the Shor eline Community. The fund accounts for the revenues and expenditures of the Shoreline Community. At the end of the fiscal year, its fund balance was $86.3 million. As a measure of the SRPC Fund’s liquidity, it may be useful to compare the total fund balance to total fund expendit ures. The total fund balance represents 303.2% of the total fund expenditures of $28.5 million. 188
The fund balance of the SRPC Fund increased by $10.3 million during the current fiscal year. Key factors contributing to this increase are as follows:

• Total revenues are $64.4 million in the current fiscal year, a decrease of $4.7 million from the prior fiscal year. The decrease is primarily due to decrea ses in developer fees and contributions, offset by increases in property taxes.

• Expenditures of $28.5 million are comparable to the prior fis cal year.

• Net transfers out to the City were $20.7 million for the fisc al year ended June 30, 2023 compared to net transfers out of $14.0 million in the prior fis cal year. The increase was primarily related to increased transfers to the City for capital projects.

The SRPC 2011 Revenue Bonds Fund accounts for resources used fo r the purpose of paying the principal, interest, and related costs on the SRPC 2011 Revenue Bonds as they become due. The 2011 Bonds were fully refunded through the issuance of 2022 Refunding Revenue Bonds Series A (2022 Bonds) during the year ended June 30, 2023.

Debt service expenditures included $0.7 million in principal retirement and $1.0 million in interest and fiscal charges for the fiscal year ended June 30, 2023, 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 $0.9 million in principal retirement and $3.1 million in interest and fiscal charges for the fiscal year ended June 30, 2023. There was no principal repayment in the prior fiscal year. The Interest charges are comparable to the prior fiscal year.

The SRPC 2022 Revenue Bonds Fund was created this year and acco unts for the resources used for the purpose of paying the principal, interest, and related costs on the SRPC 2022 Revenue Bonds as they become due.

Debt service expenditures include d $355,000 in interest and fis cal charges for the fiscal year ended June 30, 2023.

189
CAPITAL ASSETS

A summary of Shoreline Community’s capital assets is as follows:

2023 2022
Land 44,331$         44,331
Construction in progress 24,741           17,869
Buildings 23,908           23,908
Improvements other than buildings 105,824         104,126 Machinery and equipment 2,314             2,271
Traffic signals 1,500             1,500
Streetlights 1,009             1,009
Less accumulated depreciation (102,159)        (98,163) Total 101,468$       96,851
Capital Assets
(Dollars in Thousands)

For the fiscal year ended June 30, 2023, capital assets, net of accumulated depreciation, totaled $101.5 million, an increase of $4.6 million compared to prior fiscal year. This increase is primarily due to Shoreline Sailing Lake improvement project. The Shoreline Community transferred capital assets of $599,000 to the City. A t June 30, 2023, construction commitments were $3.9 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, 2023, the Shore line Community has $89.9 million of outstanding noncurrent liabilities. During the fiscal year, the Shoreline Community’s total long‐term debt decreased by $1.4 million compared with the prior fiscal year, primarily due to the scheduled principal retirement of $920,000. The full repayment of 2011 Revenue Bond of $21.8 million and the issuance of 2022 Refunding Revenue Bonds of 21.6 million also resulted in a decrease of $230,000 of long‐term debt balance. 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 incr ease for the upcoming fiscal year, compared to the July 1, 2022 tax roll, due to the 2.0 CCP I applied to secured property and expected new development added to the tax roll. Property value s are rising due to the high 190
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.

REQUESTS FOR INFORMATION
These financial statements are intended to provide the community, 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, 2023
(Dollars in Thousands)
Assets:

Cash and investments 90,092$
Restricted cash and investments 6,925
Receivables:

Accounts 116
Interest 969
Capital assets:

Nondepreciable 69,072
Depreciable, net of accumulated depreciation 32,396
Total assets 199,570
Deferred outflows of resources:

Pension items 2,050
OPEB items 58
Total deferred outflows of resources 2,108
Liabilities:

Accounts payable and accrued liabilities 5,629
Interest payable 1,703
Refundable deposits 52
Unearned revenue 116
Noncurrent liabilities:

Due within one year 2,312
Due in more than one year 87,573
Net pension liability 5,582
Net OPEB liability 58
Total liabilities 103,025
Deferred inflows of resources:

Pension items 56
Net position:

Net investment in capital assets 18,508
Restricted for:

Shoreline Community indebtedness 71,086
Unrestricted 9,003
Total net position 98,597$
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, 2023
(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 22,585$ ‐ ‐ (22,585) Public safety 151 ‐ ‐ (151) Public works 2,191 ‐ ‐ (2,191) Community development 461 ‐ ‐ (461) Culture and recreation 7,054 433 ‐ (6,621) Interest on long‐term debt 4,126 ‐ ‐ (4,126) Total governmental activities 36,568$ 433 ‐ (36,135) General revenues:

Property taxes 62,947
Capital contributions from the City of Mountain View 9,212 Investment income (loss) 1,152
Transfers:

Transfers from the City of Mountain View 2,061
Transfers to the City of Mountain View (22,809)
Transfer of capital assets to the City of Mountain View (599) Total general revenues and transfers 51,964
Change in net position 15,829
Net position, beginning of year 82,768
Net position, end of yea
r 98,597$
See accompanying notes to the financial statements. 192 MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Governmental Funds
Balance Sheet
June 30, 2023
(Dollars in Thousands)
Shoreline Shoreline Shoreline Shoreline
Regional Regional Park Regional Park Regional Park
Park Community 2011 Community 2018 Community 2022
Community Revenue Bonds Revenue Bonds Revenue Bonds Total Cash and investments 90,092 $ ‐ ‐ ‐ 90,092 Restricted cash and investments 948 ‐ 5,968 9 6,925 Receivables:

Accounts 116 ‐ ‐ ‐ 116 Interest 969 ‐ ‐ ‐ 969 Total assets 92,125 $ ‐ 5,968 9 98,102 Liabilities and fund balances:

Accounts payable and accrued liabilities 5,629 $ ‐ ‐ ‐ 5,629 Refundable deposits 52 ‐ ‐ ‐ 52 Unearned revenue 116 ‐ ‐ ‐ 116 Total liabilities 5,797 ‐ ‐ ‐ 5,797 Restricted 72,034 ‐ 5,968 9 78,011 Committed 14,294 ‐ ‐ ‐ 14,294 Total fund balances 86,328 ‐ 5,968 9 92,305 Total liabilities and fund balances 92,125 $ ‐ 5,968 9 98,102 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, 2023
(Dollars in Thousands)
Fund balances ‐ total governmental funds 92,305$
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. 101,468 Interest payable on long‐term debt does not require the use of current (1,703)
Deferred outflows and inflows of resources for pension and OPEB items Deferred outflows of resources 2,108
Deferred inflows of resources (56)
Noncurrent liabilities, including bonds payable, are not due and Net pension liability (5,582)
Net OPEB liability (58)
Bonds and loans payable (89,885)
Net position of governmental activities 98,597$
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, 2023
(Dollars in Thousands)
Shoreline Shoreline Shoreline Shoreline
Regional Regional Park Regional Park Regional Park
Park Community 2011 Community 2018 Community 2022
Community Revenue Bonds Revenue Bonds Revenue Bonds Total Revenues:

Property taxes 62,947$ ‐ ‐ ‐ 62,947 Use of money and property 1,278 3 167 ‐ 1,448 Charges for services 85 ‐ ‐ ‐ 85 Other 52 ‐ ‐ ‐ 52 Total revenues 64,362 3 167 ‐ 64,532 Expenditures:

Current:

General government 22,556 ‐ ‐ ‐ 22,556 Public safety 111 ‐ ‐ ‐ 111 Public works 1,234 ‐ ‐ ‐ 1,234 Community development 399 ‐ ‐ ‐ 399 Culture and recreation 4,169 ‐ ‐ ‐ 4,169 Debt service:

Principal ‐ 695 920 ‐ 1,615 Interest and fiscal charges ‐ 1,004 3,063 355 4,422 Total expenditures 28,469 1,699 3,983 355 34,506 Excess (deficiency) of revenues
over (under) expenditures 35,893 (1,696) (3,816) (355) 30,026 Other financing sources (uses):

Issuance of bonds ‐ 21,401 ‐ 164 21,565 Payment to bond refunding escrow ‐ (21,100) ‐ ‐ (21,100)
Transfers in ‐ 696 9,784 200 10,680 Transfers out (4,879) (5,801) ‐ ‐ (10,680) Transfers from the City of Mountain View 2,061 ‐ ‐ ‐ 2,061 Transfers to the City of Mountain View (22,809) ‐ ‐ ‐ (22,809) Total other financing sources (uses) (25,627) (4,804) 9,784 364 (20,283) Net change in fund balances 10,266 (6,500) 5,968 9 9,743

Fund balances, beginning of year 76,062 6,500 ‐ ‐ 82,562 Fund balances, end of year 86,328$ ‐ 5,968 9 92,305 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, 2023
(Dollars in Thousands)
Net change in fund balances ‐ total governmental funds 9,743 $ 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 9,212$ Depreciation (3,996)
Transfer of capital assets to the City of Mountain View (599) 4,617 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. 826 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. (803)
The issuance of bonds are reported as other financing sources in governmental funds and thus contribute to the change in fund balances. However, bonds issuance change long‐term liabilities in the statement of net position and do not affect the statement of activities.

Issuance of bonds (21,565)
Payment to bond refunding escrow 21,100 (465) The repayment of the principal of long‐term debt consumes the current financial resources of governmental funds. 1,615
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 79 296 Change in net position of governmental activities 15,829$ 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, 2023
(Dollars in Thousands)
Original Final Actual Variance with
Budget Budget Amounts Final Budget
Revenues:

Property taxes 56,777$ 56,777 62,947 6,170 Use of money and property 1,821 1,821 1,278 (543) Charges for services 55 55 85 30 Other 40 40 52 12 Total revenues 58,693 58,693 64,362 5,669 Expenditures:

Current:

General government:

City attorney 10 24 ‐ 24 Finance and administrative services 22,045 22,592 22,556 36 Public safety:

Fire 173 187 71 116 Police 40 40 40 ‐ Public works 1,529 1,560 1,234 326 Community development 715 767 399 368 Culture & recreation:

Transfers out (5,864) (5,864) (4,879) 985 Transfers from the City of Mountain View ‐ ‐ 2,061 2,061 Transfers to the City of Mountain View (13,647) (22,809) (22,809) ‐ Total other financing sources (uses) (19,511) (28,673) (25,627) 3,046
Net change in fund balances 9,809$ (150) 10,266 10,416 Fund balance, beginning of year 76,062
Fund balance, end of year 86,328$
See accompanying notes to the financial statements. 197

198

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MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

199
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Mountain View Shoreline Regional Park Community (Shoreline Community) was established in 1969 pursuant to the provisions of the Mountain View Shoreline Regio nal 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 Com m u n i t y ’s Boar d (Boar d ) i s c om p r ise d of t h e sam e m e mb er s as th e Ci ty Cou n c i l and th e Ci t y ’s management has operational responsibility of the Shoreline Community. Therefore, the Shoreline Community is considered a blended component unit of the City an d 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 Community’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. Shoreline Communi ty 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 Communit y; all property taxes on the “frozen” assessed valuation of the property are allocated to th e City and other taxing entities receiving taxes within the Shoreline Community’s boundaries.

The Shoreline Community has no po wer 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 Bayshore Plan from other sources, including assistance from the City, the State and federal governments, interest incom e a n d t h e i s s u a n c e o f S h o r e l i n e 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 ‐ The Statement of Net Position and the Statement of Activitie s 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, 2023

200
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Shorelin e Community’s activities. Dire ct expenses are those that are specifically associated with a program or function and, therefo re, 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 statements 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 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 Community 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.

Shoreline Regional Park Community 2022 Revenue Bonds Fund (Debt S e r v i c e) – This fund accounts for the resources used for the purpose of paying the principal, interest and related costs on the Shoreline Regional Park Community 2022 Refunding Revenue Bonds Series A 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.

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

201
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

year end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long‐term debt 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 deb t issuance and acquisitions under capital leases are reported as other financing sources.

Non‐exchange transactions, in which the Shoreline Community giv es or receives value without directly receiving or giving equal value in exchange, include p roperty 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 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 progra ms that is restricted to the operations of these programs. The Shoreline Community also receives unrestricted revenues from different funding sources. When restricted program expenses are incurred, it is the Shoreline 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 bills, collects, and distributes property taxes to the Shoreline Community. The County remits to the Shor eline 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 rec eipt, and become delinquent after August 31. Collection of delinquent accounts is the responsibi lity 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. Unsecured may also include the property taxes paid in lieu on leased property. Property tax revenues a re recognized by the Shoreline Community in the fiscal year they are levied, provided they become available as defined above.

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

202
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

E. Deferred Outflows and Inflows of Resources

In addition to assets, the Statement of Net Position reports 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 app lies 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 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 net pension liability and net OPEB 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 recognized when due and payable in accordance with the benefit terms. CalPERS plan member contribu tions 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 share 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:

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, 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 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.

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

203
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 (SBI TAs) 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 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.

 In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (a) practice issues that been identified during implementation and application of certain GASB Statement s and (b) accounting and financial reporting for financial guarantees. The requirements related to leases, public‐private partnerships (PPPs), and SBITAs are effective for the Shoreline Community’s fiscal year ended June 30, 2023. Implementation of these requirements did not have a significant impact on the Shoreline Community’s financial statements for the fiscal year ended June 30, 2023.

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 April 2022, the GASB issued Statement No. 99, Omnibus 2022. The requirements related to financial guarantees and the classification and reporting of de rivative instruments 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. 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 absenc es. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending cer
tain previously required disclosures. The requirem ents 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, 2023

204
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

H. Use of Estimates

The preparation of financial statements 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 financial 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 June 30 for the ensuing fiscal year for the Shoreline Regional Park Community Fund.

No annual budgets are adopted for the Shoreline Community’s Debt 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 esta blished 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 reappropriated amounts for encumbrances and donations outstanding at the end of each prior fiscal year.

The Shoreline Community’s Board must approve appropriation increases to departmental budgets; however, management may transfer Board‐approved budgeted amounts within fund and departmental expenditure classifications. Judgments, settlements 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. Supplementa l 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 portion of the applicable appropriation. Encumbrance accounting is employed as an extension 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, 2023

205
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. Investments are carried at fair value as of June 30, 2023. Cash and investments are as follows (dollars in thousands):

Cash and investments 90,092$
Restricted cash and investments 6,925
Total cash and investments 97,017$

The Shoreline Community’s cash and investments of $90.0 million are invested in the City’s cash and investments pool. Restricted cash and investments are held by bond trustee and are invested in money market mutual funds.

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, negotiable certificates of deposit, municipal bonds issued by the City or any of its co mponent units, the Local Agency Investment Fund (LAIF), and Supranational securities.

As of June 30, 2023, the City’s cash and investments pool was comprised 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 1.86 years. Additional information regarding the interes t r a t e , c r e d i t , c o n c e n t r a t i o n 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 t he California Government Code o r 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, 2023

206
NOTE 3 – CASH AND INVESTMENTS (Continued)

The investment types that are authorized for investments held by bond trustee are as follows:

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 inve stment, the greater the sensitivity of its fair value to changes in market interest rates. The City monitors the interest rate risk inherent in its portfolio by measuring the modified duration (modified d uration is a measure of a fixed income’s cash flows using present values, weighted for cash flow s a s a p e r c e n t a g e o f t h e investments’ full price) of its portfolio. The City monitors interest rate risk inherent in investments held by the trustee by using specific identification. The Shore line Community’s investments in money market mutual funds are available for withdrawal on demand and as of June 30, 2023, have an average maturity of less than 60 days.

C r e d i t R i s k

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 is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2023, the Shor eline Community’s investments in money market mutual funds are rated AAA by Standard & Poor’s.

Concentration of Credit Risk

The Shoreline Community 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 m a r k e t f u n d s a n d e x t e r n a l i n v e s t m e n t p o o l s . As of June 30, 2023, 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, 2023

207
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 inv estment 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 are not subject to fair valu e hierarchy. Investments measured using level 2 inputs are valued using prices determine d 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, 2023, Shoreline Regional Park Community Fund transferred $0.7 million, $4.0 million, and $0,2 million, to the Shoreline Regional Park Community 2011 Revenue Bonds Fund, Shoreline Regional Park Comm unity 2018 Revenue Bonds Fund, and Shoreline Regional Parking Community 2022 Revenue Bonds Fund, respectively, to fund debt service payments. The Shoreline Regional Park Community 2011 Revenue B onds Fund also transferred reserve fund of $5.8 million to the Shoreline Regional Park Community 2018 Revenue Bonds.

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 Sho reline 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, 2023, the Shoreline Community transferred to the City $22.5 million to fund capital projects, $140,000 for equipment replacements, and $140,000 for operating costs. The City transferred $2.1 million to the Shoreline Community to ret urn interest earnings on available capital projects balances and unspent funds on completed capital projects.

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 Shoreline Community defines capital assets as assets with an initial individual cost 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.

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

208
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, 2023 is as follows (dollars in thousands):

Balance Balance
June 30, 2022 Additions Retirements Transfers June 30, 2023 Capital assets not being depreciated:

Land $ 44,331 ‐ ‐ ‐ 44,331 Construction in progress 17,869 9,20 6 ‐ (2,334) 24,741 Total capital assets not being depreciated 62,200 9,206 ‐ (2,334) 69,072 Capital assets being depreciated:

Buildings 23,908 ‐ ‐ ‐ 23,908 Improvements other than buildings 104,126 ‐ ‐ 1,698 105,824 Machinery and equipment 2,271 6 ‐ 37 2,314 Traffic signals 1,500 ‐ ‐ ‐ 1,500 Streetlights 1,009 ‐ ‐ ‐ 1,009 Total capital assets being depreciated 132,814 6 ‐ 1,735 134,555 Less accumulated depreciation for:

Buildings (12,660) (537) ‐ ‐ (13,197) Improvements other than buildings (82,056) (3,325) ‐ ‐ (85,381) Machinery and equipment (1,915) (75) ‐ ‐ (1,990) Traffic signals (882) (39) ‐ ‐ (921) Streetlights (650) (20) ‐ ‐ (670) Total accumulated depreciation (98,163) (3,996) ‐ ‐ (102,159) Net capital assets being depreciated 34,651 (3,990) ‐ 1,735 32,396 Total capital assets, net 96,851$ 5,216 ‐ (599) 101,468

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

209
NOTE 6 – CAPITAL ASSETS (Continued)

During the fiscal year ended June 30, 2023, the Shoreline Community transferred certain infrastructure including bridges and culverts; sidewalks, curbs and gutters; and streets and roads funded by the Shoreline Community totaling $599,000 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 fun ction for the fiscal year ended June 30, 2023 are as follows (dollars in thousands):

General government 29$
Public safety 40
Public works 962
Community development 64
Culture and recreation 2,901
Total 3,996$

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, 2023, are as follows (dollars in thousands):

Spent Remaining
to Date Commitment
Land ‐ $                   6
Improvements other than buildings 9,861              1,307 Buildings 1,160              2,294
Infrastructure 13,720 295
Total 24,741 $        3,902

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

210
NOTE 7 – NONCURRENT LIABILITIES

The Shoreline Community generally incurs long‐term debt to fina nce 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, 2023, are as follows (dollars in thousands):

Original Balance Balance Due
Issue June 30, June 30, Within
Amount 2022 Additions Retirements 2023 One Year
Revenue Bonds:

Shoreline Regional Park Community
2011 Revenue Bonds

2.0% to 5.75%, due Fiscal Year 2040‐41 $ 39,030 21,795 ‐ (21,795) ‐ ‐ Shoreline Regional Park Community
2018 Revenue Bonds Series A

3.36% to 4.24%, due Fiscal Year 2031‐32 10,315 10,315 ‐ (920) 9,39 5 950 Shoreline Regional Park Community
2022 Refunding Revenue Bonds

4.83%, due Fiscal Year 2039‐40 21,565 ‐ 21,565 ‐ 21,565 1,145 Total noncurrent liabilities $ 130,811 91,252 21,565 (22,932) 89,885 2,312

B. Descriptions of Noncurrent Liabilities

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 wi thin the Shoreline Community.

The 2011 Bonds were fully refunded through the issuance of 2022 Refunding Revenue Bonds, Series A (2022 Bonds) during the year ended June 30, 2023.

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

211
NOTE 7 – NONCURRENT LIABILITIES (Continued)

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 wi thin 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 int erest, to be due and payable immediately.

2022 Refunding Revenue Bonds Shoreline Regional Park Community ‐ On November 22, 2022, the Shoreline Community issued the 2022 Bonds of $21.6 million through private placement.

Proceeds from the 2022 Bonds were used to fully refund the 2011 Bonds. The 2022 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 Aug ust 1 and February 1 from property tax revenues generated within the Shoreline Community. The refunding resulted in net present value savings of $1.1 million. 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 they become due and payable. If an event of default has occurr ed 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 outstanding, declare the accreted value and principal of the bonds, together with the accrued interest, to be due and payable immediately.

C. Debt Service Requirements

The pledge of future tax increment revenues ends upon repayment of the $148.9 million in remaining debt service on the Shoreline Community’s Revenue Bonds, which is scheduled to occur in Fiscal Year 2048‐49. For the fiscal year ended June 30, 2023, tax increment revenues amounted to $62.9 million, which represented coverage of 11.4 over the $5.5 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
2024 2,095 $ 4,042 6,137
2025 1,860 3,959 5,819
2026 1,940 3,878 5,818
2027 2,025 3,793 5,818
2028 2,105 3,703 5,808
2029 - 2033 11,970 16,975 28,945
2034 - 2038 15,200 13,723 28,923
2039 - 2043 17,350 9,721 27,071
2044 - 2048 24,290 4,558 28,848
2049 5,610 140 5,750
Total 84,445$ 64,492 148,937
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

212
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 defined benefit pension plan administered by the California Public Employees’ Retirement Sys tem (CalPERS), which acts as a common investment and administrative agent for its participatin g member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that i nclude a full description of t he 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 allocated to the Shoreline Community.

The cost‐of‐living adjustments for the CalPERS plans 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 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, 2023, are summarized as follows:

(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, 2023

213
NOTE 8 – PENSION PLAN (Continued)

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 following notice of a change in the rate. The actuarially determined rate is the projected amount necessary t o 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 its 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 $768,000 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, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, 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 cont ributions 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, 2023 and 2022, (measurement dates of June 30, 2022 and 2021, 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, 2022 5,582$ 4.44% Proportion ‐ Measurement date June 30, 2021 2,788 4.61% Change 2,794$ ‐0.17%

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

214
NOTE 8 – PENSION PLAN (Continued)

Actuarial Assumptions – The total pension liability fo r the Plan in the June 30, 2021 actuarial valuation was determined using actuarial assumptions as follows:

Miscellaneous Plan
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions:

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 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre‐retirement and Post‐retirement mortality rates include generational mortality improvement using 80% of Scale MP‐ 2020 published by the Society of Actuaries. For more details on the table, refer to the 2021 CalPERS experience study report available on the CalPERS website.

All other actuarial assumptions used in the June 30, 2021 actua rial valuation were based on the 2021 CalPERS Experience Study for the period from 2001 to 2019, including updates to salary increase, mortality and retirement rates. Further details of the 2021 CalPERS Experience Study can be found on the CalPERS website under Forms and Publications.

Change of Assumptions – During measurement period 2022, the discount rate was reduced from

7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study.

Discount Rate – The discount rate used to meas ure the total pension liability was 6.90 percent.

The projection of cash flows used to determine the discount rat e assumed that the contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required 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, th e 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 re turn (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, 2023

215
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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building‐ block approach. The expected rate of return was then adjusted to account for assumed administrative expense of 10 basis points. The expected real r ates of return by asset class are as follows:

Asset Class:

Assumed Asset
Allocation Real Return 1, 2
Global Equity ‐ Cap‐Weighted 30.0% 4.54%
Global Equity ‐ Non‐Cap‐Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage‐Backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage ‐5.0% ‐0.59%

(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.

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 6.90 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 point lower or one percentage point higher than the current rate are as follows (dollars in thousands):

Discount Rate
‐1% (5.90%)
Current
Discount Rate
(6.90%)
Discount Rate
+1% (7.90%)
8,556$ 5,582 3,126
Shoreline Community's proportionate
share of the City's Miscellaneous Plan
net pension liability

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

216
NOTE 8 – PENSION PLAN (Continued)

C. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the fiscal year ended June 30, 2023, the Shoreline Community recognized pension expense of $747,000. The Shoreline Community reported deferred outflows of resources related to pensions by sources for the fiscal year ended June 30, 2023 are as follows (dollars in thousands):

Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Pension contributions subsequent to
measurement date $                     768                            ‐ Differences between expected and
actual experience                           18                            56 Changes in assumptions                         423                            ‐ Net differences between projected and actual
earnings on plan investments                         841                            ‐ Total $                 2,050                           56

As of June 30, 2023, the Shoreline Community reported $768,000 as deferred outflows of resources related to contributions subsequent to the measurement date whi ch will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2024. Net amounts reported as deferred outflows of resources and deferred inflows of resou rces related to pensions will be recognized as pension expense are as follows (dollars in thousands):

Fiscal Year Ending
June 30, Amount
2024 (349)$
2025 (298)
2026 (62)
2027 (517)
Total (1,226)$

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

217
NOTE 9 – OTHER POST‐EMPLOYMENT BENEFITS

A. General Information about the OPEB Plan

Plan Descriptions – By Council resolution and through agreements with its labor u nits, 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 Ho spital Care Act (PEHMCA)) under a single employer defined benefit OPEB plan. In December 2008, the City entered into an agreement with CalPERS to partic ipate in CERBT, an agent multip le‐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 web site 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 eligib le miscellaneous employees. If an employee elects to participate in the DC Plan, the City makes c ontributions on behalf of the employee into a Health Savings Account (HSA). Employees who hav e 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, 2023, the Shoreline Community’s contributions totaled $58,000.

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, 2022 was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update pro cedures. The Shoreline Commu nity’s proportion of the net OPEB liability was based on the projection of the Shoreline Community’s long‐term share of contributions to the OPEB plan relative to the projected contributions of all participating City funds, actuarially determined.

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

218
NOTE 9 – OTHER POST‐EMPLOYMENT BENEFITS (Continues)

The change in the Shoreline Community’s proportionate share of the net OPEB liability as of June 30, 2023 and 2022 (measurement dates of June 30, 2022 and 2021, 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, 2022 58$ 0.55% Proportion ‐ Measurement date June 30, 2021 127 ‐0.49% Change (69)$ 1.04%

Actuarial Assumptions – The total OPEB liability for the City’s OPEB plan were determ ined using actuarial assumptions as follows:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions:

For vision premiums: 3.00%
Mortality Derived using CalPERS Membership Data
for all Funds (1)

Change in Assumptions – During the measurement period 2022, the discount rate was re duced from 6.00 percent to 5.60 percent.

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

219
NOTE 9 – OTHER POST‐EMPLOYMENT BENEFITS (Continued)

The long‐term expected rate of return for OPEB plan investments is 5.60 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:

(1) An expected inflation rate of 2.40 percent is used for this period. (2) An expected inflation rate of 2.30 percent is used for this period.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate – The Shoreline Community’s proportionate share of the net OPEB liability, calculated using the discount rate of 5.60 percent, as well as what the net OPEB liability would be if it were calcula ted 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% (4.60%)
Current
Discount Rate
(5.60%)
Discount Rate
+1% (6.60%)
58$ 58 58

Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates – The Shoreline Community’s proportionate share of the net OPEB liability, as w ell as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current rate are as follows (dollars in thousands):

Healthcare
Cost Trend
Rate ‐1%
Healthcare
Cost Trend
Current Rate
Healthcare
Cost Trend
Rate +1%
58$ 58 58

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

220
NOTE 9 – OTHER POST‐EMPLOYMENT BENEFITS (Continued)

C. OPEB Expenses and Deferred Outflows of Resources Related to OPEB

For the fiscal year ended June 30, 2023, the Shoreline Communit y recognized OPEB expense of $58,000. As of June 30, 2023, the Shoreline Community reported $58,000 as deferred outflows of resources related to contributions for OPEB subsequent to the m easurement date, which will be recognized as a reduction of the net OPEB liability in the fiscal year ending June 30, 2024.

NOTE 10 – RISK MANAGEMENT

The Shoreline Community is covered under the City’s insurance p rogram and therefore contributes its proportionate share of cost. The City is exposed to various ri sks of loss related to torts, errors and omissions, injuries to employees or others, unemployment and certain health care benefits of employees.

The City has established various self‐insurance programs to acc ount 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 unemployment 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 municipalit ies, which pools catastrophic general liability, automobile liability and public officials’ errors 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. These captions apply only to net pos ition, which is determined at the Government‐wide level and are described as follows:

Net investment in capital assets – This caption groups all capital a ssets, including infrastructure, 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 ‐ 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 Communi ty not restricted for any project or purpose.

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

221
NOTE 11 – NET POSITION AND FUND BALANCES (Continued)

B. Fund Balances

Governmental fund balances represent the assets and deferred ou tflows 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 S horeline 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 expend s funds in the following order:

Restricted, Committed, Assigned and Unassigned. Each category i n 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 rest rictions 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, 2023, the Shoreline Community has res tricted fund balances of $72.0 million for Shoreline Community indebtedness and $6.0 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 subjec t to Board commitments are included along with spendable resources. As of June 30, 2023, the Shoreline Community has committed fund balances of $14.3 million for capital projects.

Assigned fund balances are amounts constr ained 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 catego ry also includes residual fund balances which have not been restricted or committed.

Unassigned fund balance represents residual fund deficits.

C. Minimum Fund Balance / Net Position Policies

The City’s Financial and Budgetary Policy requires the Shoreline 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 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 annually by an inflation factor approved by

MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

222
NOTE 11 – NET POSITION AND FUND BALANCES (Continued)

CalRecycle. On June 25, 2013, the City Council and the Board ap proved to set‐aside funds for landfill containment in the landfill reserve of the Shoreline R egional Park Community Fund. The City estimated the costs for the corrective actions to be $1.2 million for the fiscal year ended June 30, 2023 and $12.0 million to rebuild a new landfill system. As of June 30, 2023, the Shoreline Regional Park Community Fund has reported $11.0 million for the landfill containment as part of restricted fund balance and planned to increase the balance 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, 2023, are $165,000 recorded as part of restricted fund balance.

B. 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 (MVLAUHSD) and the Mountain View Whisman School District (MVWSD) effective July 1, 2013, for a period of 10 years, superseding any prior agreements dating back to the first such agreement in 200 6. The purpose of the Education Enhancement JPA is to create an Education Enhancement Reserve in which funds provided by the Shoreline Community are used to enhance the educational and technology capacity of students in the districts, which will contribute to the availability of a local technology workforce to further the objectives of the Shoreline Community. The agreement provides for minimum annual payments, which commenced with the fiscal year ended June 30, 2014, and have increased annually based on growth in property tax revenues in the preceding fiscal year. Each subsequent fiscal year increases based on growth in property tax revenues in the preceding fisca l year. For the fiscal year ended June 30, 2023, the Shoreline Community paid a total of $8.8 million in contributions to the school districts, including $5.4 million to MVWSD and $3.4 million to MVLAUHSD.

A one‐year successor agreement was executed in June 2023 for the period of July 1, 2023 through June 30, 2024. The Shoreline Community and school districts are currently negotiating a long‐term successor agreement which could alter future payments to the school districts.

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 th e County in the absence of the existence of the Shoreline Community. For the fiscal year ended June 30, 2023, $2.2 million and $2.7 million in retirement tax override levies and pass‐through payments, respectively, were paid to the County.

2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement period 2022 2021 2020 2019 2018 2017 2016 2015 2014 Shoreline Community's proportion of the net pension liability (NPL) 4.4% 4.6% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% Shoreline Community's proportionate share of the NPL $ 5,582 2,788 5,268 5,032 5,038 5,431 4,948 4,177 3,783 Shoreline Community's covered payroll $ 2,301 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 242.6% 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 75.5% 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, 2021 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. During measurement period 2022, the discount rate was reduced from 7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study.

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.

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,
223
Fiscal Year Ended June 30 2023 2022 2021 202 0 2019 2018 2017 2016 2015 201 4 Contractually required
contributions (actuarially determined) (CRC) $ 768 761 680 847 779 819 565 509 359 284 Contributions in relation to the CRC (768) (761) (680) (847) (779) (819) (565) (509) (359) (284) Contribution deficiency (excess) $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Covered payroll $ 2,233 2,301 2,149 2,037 2,009 1,907 $ 1,797 $ 1,622 $ 1,520 1,429 Contributions as a percentage of
covered payroll 34.4% 33.1% 31.6% 41.6% 38.8% 42.9% 31.4% 31.4% 23.6% 19.9% Actuarially determined contribution for fiscal year June 30, 2023 Actuarial valuation date June 30, 2020
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

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, 2023 were as follows:

Fiscal Year Ended June 30,
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNIT
Y
Required Supplementary Information (Unaudited)
Schedule of the Shoreline Community Pension Contributions (Dollar in Thousands)
224
2023 2022 2021 2020 2019 2018
Measurement period 2022 2021 2020 2019 2018 2017
Shoreline Community's proportion of the net OPEB liability (NOPEBL) 0.5% ‐0.5% 2.1% 6.8% 1.1% 3.3% Shoreline Community's proportionate share of the NOPEBL $ 58 $ 127 $ 112 $ 602 $ 290 $ 1,085 Shoreline Community's covered payroll $ 2,301 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 2.5% 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 93.5% 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. During the measurement period 2022, the discount rate was reduced from 6.00 percent to 5.60 percent.

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.

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,
225
Schedule of the Shoreline Community OPEB Contributions
Fiscal Year Ended June 30 2023 2022 2021 2020 2019 2018 2017 Actuarially determined contributions (ADC) $ 58 127 112 602 290 1,085 1,014 Contributions in relation to the ADC (58) (127) (112) (602) (290) (1,085) (1,014) Contribution deficiency (excess) $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Covered payroll $ 2,233 2,301 2,149 2,037 2,009 1,907 1,797 Contributions as a percentage of
covered payroll 2.6% 5.5% 5.2% 29.6% 14.4% 56.9% 56.4%
ADC for fiscal year June 30, 2023
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 COMMUNIT
Y
Fiscal year ended June 30, 2018 was the first year of implementation of GASB Statement No. 75, therefore only seven 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.

The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2023 were as follows:

Fiscal Year Ended June 30,
Required Supplementary Information (Unaudited)
(Dollar in Thousands)
226
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Shoreline Regional Park Community Fund
For the Fiscal Year Ended June 30, 2023

227
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 recei ved 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, 2023
(Dollars in Thousands)
Shoreline Shoreline
Regional Regional North
Park Park Bayshore
Community Community Impact
Administrative Special Fee Total
Cash and investments 71,800 $ 4,139 14,153 90,092 Restricted cash and investments 948 ‐ ‐ 948 Receivables:

Accounts 116 ‐ ‐ 116 Interest 828 ‐ 141 969 Total assets 73,692$ 4,139 14,294 92,125 Liabilities and fund balances:

Accounts payable and accrued liabilities 5,629$ ‐ ‐ 5,629 Refundable deposits 52 ‐ ‐ 52 Unearned revenue 116 ‐ ‐ 116 Total liabilities 5,797 ‐ ‐ 5,797 Restricted 67,895 4,139 ‐ 72,034 Committed ‐ ‐ 14,294 14,294 Total fund balances 67,895 4,139 14,294 86,328 Total liabilities and fund balances 73,692 4,139 14,294 92,125 Assets:

Liabilities:

Fund Balances:
228
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, 2023
(Dollars in Thousands)
Shoreline Shoreline
Regional Regional North
Park Park Bayshore
Community Community Impact Interfund
Administrative Special Fee Elimination Total
Revenues:

Property taxes ‐ $ 62,947 ‐ ‐ 62,947 Use of money and property 1,621 36 (379) ‐ 1,278 Charges for services 85 ‐ ‐ ‐ 85 Other 52 ‐ ‐ ‐ 52 Total revenues 1,758 62,983 (379) ‐ 64,362 Expenditures:

Current:

General government 22,556 ‐ ‐ 22,556 Public safety 111 ‐ ‐ ‐ 111 Public works 1,234 ‐ ‐ ‐ 1,234 Community development 399 ‐ ‐ ‐ 399 Culture and recreation 4,169 ‐ ‐ ‐ 4,169 Total expenditures 28,469 ‐ ‐ ‐ 28,469 Excess (deficiency) of revenues
over (under) expenditures (26,711) 62,983 (379) ‐ 35,893 Other financing sources (uses):

Transfers in 57,715 ‐ ‐ (57,715) ‐ Transfers out ‐ (62,594) ‐ 57,715 (4,879) Transfers from the City of Mountain View 1,811 ‐ 250 ‐ 2,061 Transfers to the City of Mountain View (22,424) ‐ (385) ‐ (22,809)

Total other financing sources (uses) 37,102 (62,594) (135) ‐ (25,627) Net change in fund balances 10,391 389 (514) ‐ 10,266

Fund balances, beginning of year 57,504 3,750 14,808 ‐ 76,062 Fund balances, end of year 67,895$ 4,139 14,294 ‐ 86,328 229

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www.mgocpa.com Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
231
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements
Perfor
med in Accordance With Gove rnment 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 generally a ccepted in the United States of America and the standards applicable to financial audits c ontai ned in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards ), t he financial state
ments of the governmental activities and each major fund o f 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 ended June 30, 2023, and the rel ated notes to the financial statements, which collectively
comprise the Shoreline Community’s basic financial statements, and have issued our report thereon dated November 27, 2023.

Report on Internal Control Over Financial Reporting
In
planning and performing our audit of the financial statements, we considered the Shoreline Community’s internal contr
ol 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 effectivene ss of the Shoreline Community’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Shoreline Community’s internal control.

A deficiency i
n internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely b asis. 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 thos e charged with governance.

Our
consideration of internal control w as for the limited purpose described in the first paragraph of this section and was not designed to iden tify 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 Co
mpliance 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 co mpliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance wit h which could have a direct and material effect
on the financial statements. However, providing an opinion on compliance with tho se 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.
232
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 27, 2023

Mountain View City CouncilDecember 12, 2023

Mountain View City Council
December 12, 2023