In preparing the financial statements, management is re quired to evaluate wheth e r there are conditions or events, considered in the aggregate, that raise subs tantial 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.
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 issu e an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolu te assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may in volve 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, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstat ement of the financial statements, whether due to fraud or error, and design and pe rform 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 circ umstances, but not for the purpose of expressing an opinion on the effectiveness of the Shoreline Community’s inter nal control. Accordingly, no such opinion is expressed.
Evaluate the appropria teness of accounting polic ies used and the reasonableness of significant accounting estimates made by management, as we ll 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 Shoreline Community’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant au dit findings, and certain internal control–related matters that we identified during the audit.
202
To the Board of Directors
of the Mountain View Shoreline Regional Park Community
Mountain View, California
Required Supplementary Information
Accounting principles generally acce pted in the United Stat es of America require that the management’s
discussion and analysis and the required pension and OPEB schedules, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for pl acing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of managem ent about the methods of preparing the information and comparing the information for consistency with ma nagement’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assuranc e on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming op
inions on the financial statements that collectively
comprise the Shoreline Community’s basic financial statements. The Shoreline Regional Park Community Fund combining fund statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The Shoreline Regional Park Community Fund combin ing fund statements are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financ ial 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 acco rdance with auditing standards generally accepted in the United States of America. In our opinion, the Shoreline Regional Park Community Fund combining fund statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 203
To the Board of Directors
of the Mountain View Shoreline Regional Park Community
Mountain View, California
Other Reporting Required by Governmen t Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 22, 2024 on our consideration of the Shoreline Community’s inte rnal control over financial reporting and on our tests of its compliance with certain provisions of l aws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Shoreline Community’s internal control over financial reporting and compliance.
Badawi & Associates, CPAs
Berkeley, California
November 22, 2024
204
Mountain View Shoreline Regional Park Community
Management’s Discussion and Analysis (MD&A) (Unaudited) for the Fiscal Year Ended June 30, 2024
This section of the Mountain View Shoreline Regional Park Community’s (Shoreline Community or SRPC) basic financial statements presents a narrative overview and analysis of the financial activities of the Shoreline Community for the fiscal year ended June 30, 2024. We encourage readers to co
nsider the information presented here in conjunction with additional information that has been furnished in the financial statements and our transmittal letter for the financial statements of the City of Mountain View (City).
FINANCIAL HIGHLIGHTS
The Shoreline Community’s principal revenue sou
rce 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 2023‐24, property taxes increased by $8.2 million or
13.0%. Fiscal Year 2023‐24 financial highlights include the following:
• The Shoreline Community’s assets and defe
rred outflows of resources exceeded its
liabilities and deferred inflows of resources for the fiscal year ended June 30, 2024 by $124.8 million (net position). Of this amount, $25.8 million reflects its net investment in capital assets, $100.6 million is restricted for Shoreline Community indebtedness, and negative $1.6 million is unrestricted.
• The Shoreline Community’s total net position inc
reased by $26.2 million during the fiscal
year compared to the prior fiscal year increase of $15.8 million. The change is primarily due to an $8.2 million increase in property revenues and a $6.1 million rise in investment earnings.
• Revenues of $84.0 million, including program revenues and general revenues , excluding net
transfers, are $10.3 million more than the prior fiscal year. As mentioned in the above paragraph, the change is primarily due to higher property tax revenues and higher investment earnings, partially offset by a $4.1 million decrease in capital contributions from the City.
• Shoreline Community expenses are $39.2 million, an increas e of $2.7 million over the prior
fiscal year.
• Governmental fund balances for the fiscal year ended June 30, 2024 increased $23.0 million to $115.3 million, primarily due to higher property tax revenues, higher investment earnings as a result of unrealized gains, and
excess of revenues over expenditures.
205
• Governmental fund revenues are $78.9 million for the fiscal year ended June 30, 2024, an increase of $14.4 million from the prior fiscal year, primarily from the reasons stated above. • Governmental fund expenditures are $37.4 million for the fiscal year ended June 30, 2024, an increase of $2.9 million from the prior fiscal year’s expenditures of $34.5 million. • The Shoreline Community’s total no
ncurrent liabilities decreased by $2.3 million compared with the prior fiscal year, primarily due to the annual principal payment of bonds.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Shoreline
Community’s component unit basic financial statements. The Shoreline Community’s component unit basic financial statements comprise three components: (1) government‐wide financial statements; (2) fund financial statements; and (3) notes to the basic financial 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 decrease s in net position may serve as a useful
indicator of whether the financial position of the Shoreline Community is improving or deteriorating.
The Statement of Activities presents information showing how the Shoreline Community’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.
Fund Financial Statements
The fund financial statements are designed to report information about groupings of related
accounts, which are used to maintain control over resources that have been segregated for specific activities or objectives. The Shoreline Community, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements.
Governmental funds are used to account for essential ly the same functions reported as
governmental activities in the government‐wide financial statements. However, unlike the 206
government‐wide financial statements, governmental fund financial statements focus on near‐ term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in determining what financial resources are available in the near future to finance the Shoreline Community’s programs.
Because the focus of governmental funds is narrower than that of the government‐wi de financial
statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government‐wide financial statements. By doing so, readers may better understand the long‐term impact of the government’s near‐term financing decisions
. Both the governmental funds Balance Sheet and
the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Shoreline Community has three individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and
in the governmental funds Statement
of Revenues, Expenditures, and Changes in Fund Balances for the SRPC Fund, SRPC 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
The Shoreline Community has presented its financial statements under the reporting model required acco
unting 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.
207
Analysis of Net Position
A summary of the Shoreline Community’s net position is as follows:
2024 2023
Assets:
Current and other assets $ 121,805 $ 98,102
Capital assets 102,487 101,468
Total assets 224,292 199,570
Deferred outflows of resources:
Pension items 2,116 2,050
OPEB items 44 58
Total deferred outflows of resources 2,160 2,108 Liabilities:
Current and other liabilities 10,037 7,500 Noncurrent liabilities 85,714 89,885 Net pension liability 5,850 5,582 Net OPEB liability 44
58 Total liabilities 101,645 103,025
Deferred inflows of resources:
Deferred inflows related to pension 29 56 Net Position:
Net investment in capital assets 25,838 18,508 Restricted for Shoreline Community indebtedness 100,585 71,086 Unrestricted (1,645) 9,003
Total net position $ 124,778 $ 98,597
Condensed Statement of Net Position
(Dollars in Thousands )
208
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 $124.8 million at the end of the fiscal year. The components of net position are as follows:
• Net investment in capital assets was $25.8 million, which was an increase of $7.3 million compared to the prior
fiscal year. This increase was mainly due to increased capital assets and decreased debt outstanding during the current fiscal year. • Another significant component of the Shoreline Community’s net position is $100.6 million in Restricted for Shoreline Commu
nity Indebtedness, which may be used to meet the Shoreline Community’s current and future obligations. The balance increased by $29.5 million from the prior fiscal year.
The Shoreline Community’s current and other assets increased $23.7 million while net position increased $26.2 million compared to the prior fiscal year, primarily due to revenues exceeding expenses by $44.8 million, offset partially by net transfers out to the City of $18.6 million. 209
Statement of Activities
A summary of the Shoreline Community’s changes in
net position is as follows:
2024 2023
Revenues:
Program revenues $ 498 $ 433 General revenues:
Taxes 71,154 62,947
Capital contributions 5,064 9,212 Investment income 7,288 1,152 Total revenues 84,004 73,744
Expenses:
General government 25,438 22,585 Public safety 133 151
Public works 2,219 2,191
Community development 517 461
Culture and recreation 7,143 7,054 Interest on long‐term debt 3,795 4, 126 Total ex
penses 39,245 36,568
Increase in net position before transfers 44,759 37,176 Transfers (net) (18,578) (20,748) Transfer of capital assets
to the City of Mountain View ‐ (599)
Change in net position 26,181 15,829 Beginning net position 98,597 82,768 Ending net position $ 124,778 $ 98,597
Condensed Statement of Activities
(Dollars in Thousands)
210
The major component of the Shoreline Community’s current fiscal year revenues is $71.2 million of property taxes. This is an increase of $8,2 million when compared to the prior fiscal year due to increases in assessed property values. Program revenues were $498,000, consistent with the prior fiscal year. Capital contributions decreased by $4.1 million, primar ily due to the significant $2.3 million expenditure on the Shoreline Lake Improvement Project in the prior fiscal year.
Investment earnings were $7.3 million, an increase of $6.1 million compared to the prior fiscal year, driven by a rise in the fair market value of the investment portfolio and higher interest income due to elevated intere
st rates.
Expenses totaling $39.2 million increased $2.7 million when compared to the prior fiscal year.
This was attributable primarily to increases in general government.
The change in net position is an increase of $26.2 million compared to the prior fiscal year increase of $15.8 million. The difference is due to the items mentioned above, notably th e increases in property tax revenues and investment earnings.
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, 2024, the Shoreline Community’s funds report ed combined fund balances of
$115.3 million, an increase of $23.0 million from the prior fiscal year. The Committed Fund Balance decreased by $10.5 million while the Restricted Fund Balance increased by $33.5 million when compared to the prior fiscal year. The increas e in the Restricted Fund Balance is mainly due to higher property tax revenues, which exceed expenditures as previously noted.
Revenues for the fiscal year ended June 30, 2024 totaled $78.9 million, an increase of $14.4 million, or 22.3%, when compared to the prior fiscal year. The increase is primarily due to increases in property tax revenues and investment
earnings during the fiscal year. Expenditures
totaling $37.4 million were $2.9 million higher compared to the prior fiscal year.
The SRPC Fund receives tax revenues on properties within the Shoreline Community. The fund accounts for the revenues and expenditures of the Shoreline Community. At the end of the fiscal year, its fund balance was $109.1 million. As a measure of the SRPC Fund’s liquidity, it may be useful to compare the total fund balance to total fund expenditures. The total fund balance represents 349.3% of the total fund expenditures of $31.2 million. 211
The fund balance of the SRPC Fund increased by $22.8 million during the current fiscal year. Key factors contributing to this increase are as follows:
• Total revenues are $78.6 million in the current fiscal year, an increase of $14.2 million from the prior fiscal year. The increase is primarily attributable to higher property tax revenues and unrealized gains on investment portfolio.
• Expenditures of $31.2 m
illion is moderately higher compared to the prior fiscal year. • The transfer out to the City increased by $4.9 million, primarily due to increased transfers to the City for capital projects. The transfer in from the City increased by $7.0 million, primarily due to increas
ed refunds from General Capital Projects fund for completed CIP projects.
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 $1.0 million in principal retirement and $3.0 million in interest and fiscal charges for the fiscal year ended June 30, 2024. Both the principal repayment and the interest charges are comparable to the prior fiscal year.
The SRPC 2022 Revenue Bonds Fund was created in Fiscal Year 2022‐23 and accounts 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 included $1.1 million in principal retirement and $1.0 million in interest and fiscal charges for the fiscal year ended June 30, 2024. There was no principal retirement in the prior fiscal yea r. 212
CAPITAL ASSETS
A summary of Shoreline Community’s capital assets is as follows:
2024 2023
Land 48,225$ 44,331$
Construction in progress 24,017 24,741
Buildings 23,908 23,908
Improvements other than buildings 107,657 105,824 Machinery and equipment 2,331 2,314
Traffic signals 1,500 1,500
Streetlights 1,070 1,009
Less accumulated depreciation (106,221) (102,159) Total 102,487$ 101,468$
Capital Assets
(Dollars in Thousands)
For the fiscal year ended June 30, 2024, capital assets, net of accumulated depreciation, totaled
$102.5 million, a moderate increase of $1.0 million compared to prior fiscal year. At June 30, 2024, construction commitments were $4.6 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, 2024, the Shoreline Community has $87.6 million of outstanding noncurrent liabilities.
During the fiscal year, the Shoreline Community’s total long‐term debt decreased by $2.3 million compared with the prior fiscal year, primarily due to the scheduled principal retirement of $2.3 million. Standard & Poor’s (S&P) raised the Shoreline Community’s underlying credit rating from “A” to “A+” in November 2018.
The Shoreline Community’s noncurrent
liabilities are discussed in Note 7 to the Basic Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
Property taxes for the Shoreline Community are expected to increase for th e upcoming fiscal
year, compared to the July 1, 2023 tax roll, due to the 2.0 CCPI applied to secured property and expected new development added to the tax roll. Property values are rising due to the high development demand in the community, but there are also pending appeals filed by owners of property in the Shoreline Community that could impact future property tax revenues if successful.
213
REQUESTS FOR INFORMATION
These financi
al statements are intended to provide citizens, taxpayers, investors, and creditors with a general overview of the Shoreline Community’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be directed to the Finance and Administrative Services Department, 500 Castro Street, P.O. Box 7540, Mountain View, California, 94039‐7540, or [email protected]. 214
BASIC
FINANCIAL STATEMENTS
215
216
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GOVERNMENT‐WIDE
FINANCIAL STATEMENTS
217
218
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Mountain View Shoreline Regional Park Community
Statement of Net Position
June 30, 2024
(Dollars in Thousands)
ASSETS
Current assets:
Cash and investments 109,693$
Restricted cash and investments 10,930
Receivables:
Accounts 109
Interest 1,073
Total current assets 121,805
Noncurrent assets:
Capital assets:
Nondepreciable 72,242
Depreciable 136,466
Less accumulated depreciation (106,221)
Total capital assets 102,487
Total noncurrent assets 102,487
Total assets 224,292
DEFERRED OUTFLOWS OF RESOURCES
Pension items 2,116
OPEB items 44
Total deferred outflows of resources 2,160
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 6,359
Interest payable 1,666
Refundable deposits 53
Unearned revenue 99
Long‐term debt ‐ current portion 1,860
Total current liabilities 10,037
Noncurrent liabilities:
Net pension liability 5,850
Net OPEB liability 44
Long‐term debt 85,714
Total noncurrent liabilities 91,608
Total liabilities 101,645
DEFERRED INFLOWS OF RESOURCES
29 Pension items
Total deferred inflows of resources 29
NET POSITION
Net investment in capital assets 25,838
Restricted for:
Shoreline community indebtedness 100,585
Total restricted 100,585
Unrestricted (1,645)
Total net position 124,778$
219
See accompanying Notes to the Basic Financial Statements.
Mountain View Shoreline Regional Park Community
Statement of Activities
For the year ended June 30, 2024
(Dollars in Thousands)
Net (Expense)
Operating Capital Revenue and
Charges for Grants and Grants and Changes in
Functions/Programs Expenses Services Contributions Contributions Net Position Governmental activities:
General government 25,438$ ‐$ ‐$ ‐$ (25,438)$ Public safety 133 ‐ ‐ ‐ (133)
Public works 2,219 ‐ ‐ ‐ (2,219)
Community development 517 ‐ ‐ ‐ (517)
Culture and recreation 7,143 498 ‐ ‐ (6,645)
Interest on long‐term debt 3,795 ‐ ‐ ‐ (3,795)
Total governmental activities 39,245$ 498$ ‐$ ‐$ (38,747) General Revenues:
Property taxes 71,154
Capital contributions
from the City of Mountain View 5,064
Investment income (loss) 7,288
Transfers:
Transfers from the City of Mountain View 9,103
Transfers to the City of Mountain View (27,681)
Total general revenues and transfers 64,928
Change in net position 26,181
Net position ‐ beginning of year 98,597
Net position ‐ end of year 124,778$
Program Revenues
220
See accompanying Notes to the Basic Financial Statements.
FUND
FINANCIAL STATEMENTS
221
222
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Mountain View Shoreline Regional Park Community
Balance Sheet
Governmental Funds
June 30, 2024
(Dollars in Thousands)
Total
Governmental
Funds
ASSETS
Cash and investments 109,693$ ‐$ ‐$ 109,693$
Restricted cash and investments 4,723 6,197 10 10,930 Receivables:
Accounts 109 ‐ ‐ 109
Interest 1,073 ‐ ‐ 1,073
Total assets 115,598$ 6,197$ 10$ 121,805$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 6,353$ 3$ 3$ 6,359$ Refundable deposits 53 ‐ ‐ 53
Unearned revenue 99 ‐ ‐ 99
Total liabilities 6,505 3 3 6,511
Deferred Inflows of Resources
Total deferred inflows of resources ‐ ‐ ‐ ‐
Fund Balances:
Restricted 105,307 6,194 7 111,508
Committed 3,786 ‐ ‐ 3,786
Total fund balances 109,093 6,194 7 115,294
Total liabilities, deferred inflows of
resources and fund balances 115,598$ 6,197$ 10$ 121,805$ Shoreline Regional
Park Community
Shoreline Regional
Park Community 2018
Revenue Bonds
Shoreline Regional
Park Community 2022
Revenue Bonds
223
See accompanying Notes to the Basic Financial Statements. (Dollars in Thousands)
Total Fund Balances ‐ Total Governmental Funds 115,294$ Capital assets net of depreciation have not been included as financial resources in governmental fund activity.
Nondepreciable 72,242
Depreciable, net 30,245
Interest payable on long‐term debt does not require the use of current financial resources and, therefore, interest payable is not accrued as a liability in the balance sheet of governmental funds. (1,666)
Deferred outflows and inflows of resources for pension and OPEB items in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.
Deferred outflows of resources 2,160
Deferred inflows of resources (29)
Noncurrent liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the governmental funds.
Net pension liability (5,850)
Net OPEB liability (44)
Bonds and loans payable (87,574)
Net Position of Governmental Activities 124,778$
Mountain View Shoreline Regional Park Community
Reconciliation of the Governmental Funds Balance Sheet
to the Government‐Wide Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the statement of net position are different 224
See accompanying Notes to the Basic Financial Statements.
Mountain View Shoreline Regional Park Community
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
(Dollars in Thousands)
Total
Governmental
Funds
REVENUES:
Property taxes 71,154$ ‐$ ‐$ 71,154$
Use
of money and property 7,375 312 2 7,689
Charges for services 39 ‐ ‐ 39
Other 58 ‐ ‐ 58
Total revenues 78,626 312 2 78,940
EXPENDITURES:
Current:
General government 25,405 ‐ ‐ 25,405
Public safety 93 ‐ ‐ 93
Public works 1,162 ‐ ‐ 1,162
Community development 442 ‐ ‐ 442
Culture and recreation 4,107 ‐ ‐ 4,107
Capital outlay 21 ‐ ‐ 21
Debt
service:
Principal ‐ 950 1,145 2,095
Interest and fiscal charges ‐ 3,031 1,017 4,048
Total expenditures 31,230 3,981 2,162 37,373
REVENUES OVER (UNDER)
EXPENDITURES 47,396 (3,669) (2,160) 41,567
OTHER FINANCING SOURCES (USES):
Transfers in ‐ 3,895 2,158 6,053
Transfers out (6,053) ‐ ‐ (6,053)
Transfers from the City of Mountain View 9,103 ‐ ‐ 9,103 Transfers to
the City of Mountain View (27,681) ‐ ‐ (27,681)
Total other financing sources (uses) (24,631) 3,895 2,158 (18,578) Net change in fund balances 22,765 226 (2) 22,989
FUND BALANCES:
Beginning of year 86,328 5,968 9 92,305
End of year 109,093$ 6,194$ 7$ 115,294$
Shoreline Regional
Park Community
Shoreline Regional
Park Community 2018
Revenue Bonds
Shoreline Regional
Park Community 2022
Revenue Bonds
225
See accompanying Notes to the Basic Financial Statements.
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government‐Wide Statement of Activities For the year ended June 30, 2024
(Dollars in Thousands)
Net Change in Fund Balances ‐ Total Governmental Funds 22,989$ 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 asset additions ‐ contributions from the City of Mountain View 5,084 Depreciation (4,065)
Transfer of capital assets to the City of Mountain View 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. 901
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. (1,076)
The repayment of principal of long‐term debt consumes the current financial resources of governmental funds. 2,095
Some expenses reported inthe
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 36
Change in Net Position of Governmental Activities 26,181$ Amounts reported for governmental activities in the Government‐Wide Statement of Activities were different because:
Mountain View Shoreline Regional Park Community
226
See accompanying Notes to the Basic Financial Statements.
Mountain View Shoreline Regional Park Community
Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual Shoreline Regional Park Community Fund
For the year ended June 30, 2024
(Dollars in Thousands)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes 64,557$ 64,557$ 71,154$ 6,597$
Use of money and property 3,576 3,576 7,375 3,799
Charges for services 55 55 39 (16)
Other 40 40 58 18
Total revenues 68,228 68,228 78,626 10,398
EXPENDITURES:
Current:
General government
City attorney 20 44 ‐ 44
Finance and administrative services 23,822 25,479 25,405 74 Public safety
Fire 179 191 58 133
Police 40 40 35 5
Public works 1,695 1,703 1,162 541
Community development 698 716 442 274
Culture and
recreation
Community services 5,077 5,128 4,107 1,021
Capital outlay 43 64 21 43
Total expenditures 31,574 33,365 31,230 2,135
REVENUES OVER (UNDER)
EXPENDITURES 36,654 34,863 47,396 12,533
OTHER FINANCING SOURCES (USES):
Transfers out (6,147) (6,147) (6,053) 94
Transfers from the
City of Mountain View ‐ ‐ 9,103 9,103
Transfers to the City of Mountain View (22,304) (27,681) (27,681) ‐ Total other financing sources (uses) (28,451) (33,828) (24,631) 9,197 Net change in fund balances 8,203$ 1,035$ 22,765 21,730$ FUND BALANCES:
Beginning of year 86,328
End of year 109,093$
Budgeted Amounts
227
See accompanying Notes to the Basic Financial Statements. 228
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NOTES TO BASIC
FINANCIAL STATEMENTS
229
230
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Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Mountain View Shoreline Region
al Park Community (Shoreline Community) was established in 1969 pursuant to the provisions of the Mountain View Shoreline Regional Park Community Act (Act). The purpose of the Shoreline Community is to provide for the development of approximately 1,550 acres of Bayfront lands.
The Shoreline Communi
ty is an integral part of the City of Mountain View (City). The Shoreline Community's Board (Board) is comprised of the same members as the City Council and the City's management has operational responsibility of the Shoreline Community. Therefore, the Shoreline Community is considered a blended component unit of th
e City and its financial activities are included within the City's annual comprehensive financial report.
The Shoreline Community's primary source of revenue is property taxes, which are computed and allocated to the Shoreline Community as follows:
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 Community designated the fiscal year ended 1977‐78 as the base year.
Increments in property taxes resulting from any increase in assessed values after the adoption of the Shoreline Community are allocated to the Shoreline Commun ity; all property taxes on the "frozen"
assessed valuation of the property are allocated to the City and other taxing entities receiving taxes within the Shoreline Community's boundaries.
The Shoreline Community has no power to levy or collect taxes. Any legislative property tax reduction would lower the amount of tax revenues that would otherwise be available to pay principal and interest on debt or loans from the City and any increase in the tax rate or assessed valuation or any elimination of present exemptions would increase the amount of tax revenues available for this purpose. The Shoreline Commu nity is also authorized to finance the North Bayshore Plan from other sources, including assistance from the City, the State and federal governments, interest income and the issuance of Shoreline Community debt.
A. Basis of presentation
The Shoreline Community's basic financial statements are prepared in conformity with accounting pri nciples generally accepted in the United States of America (GAAP). 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.
Government‐wide Statements ‐ The Statement of Net Position and the Statement of A ctivities 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. 231
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Basis of presentation (Continued)
The Stateme
nt of Activities presents a comparison between direct expenses and program revenues for each function of the Shoreline Community's activities. Direct expenses are those that are specifically associated with a program or function and, 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, and (b) grants and contributions of capital assets or resources that are restricted for capital purposes. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Fi
nancial 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 Fund (General) ‐ This fund receives property tax revenues on properties within the Shoreline Community. The fund accounts for the revenues and expenditures of the Shoreline Community . This is the operating fund of the Shoreline Community .
Shoreline Regional Park 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 (Series A and Series B) as they become due.
Shoreline Regional Park Community 2022 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 2022 Refunding Revenue Bonds Series A as they become due.
C. Basis of Accounting
The government‐wide, proprietary fund, and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accoun ting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
The Shoreline Community considers all revenues reported in the governmental funds to be available if the
revenues are collected within sixty days after fiscal 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 expenditur es to the extent they have matured and are due
and payable at year end. Capital asset acquisitions are reported as expenditures in governmental funds.
Proceeds from long‐term debt issuance and acquisitions under capital leases are reported as other financing sources.
232
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Accounting (Continued)
Non‐
exchange transactions, in which the Shoreline Community gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements and donations. On the accrual basis, revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Reven
ues 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 programs 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 progra
ms 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 Shoreline Community the entire amount levied above the frozen base and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on July 1 for the fiscal year.
Secured property tax becomes a lien on January 1 and is due in two installments, on Nov ember 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. Unsecured may also include the property taxes paid in lieu on leased property. Property tax revenues are recognized by the Shoreline Community in the fiscal year they are levied, provided they becom
e available as defined above.
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 applies to a future period(s) and so will not be recogni zed 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 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.
233
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Pension and Other Postemployment Be
nefits (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 Pension and OPEB plans and additions to/deductions from th e plans' fiduciary net positions have been determined on the same basis as they are reported by the California Public Employees' Retirement System (CalPERS) and the California Employer's Retiree Benefit (CERBT) Trust Fund, respectively.
For this purpose, benefit payments (including refunds of employee contribution s) 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 are reported at fair value. The Shoreline Community's financial statements reflect its proportionate share of the Pension and OPEB liabilities, deferred outflows/inflows of resources and expenses .
G. Effects of New GASB Pronouncements
The City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements in Fiscal Year 2023‐24:
1. In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this statement are to enhance comparability in accou
nting 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. Implementation of these requirements did not have a significant impact on the City’s financial sta
tements for the fiscal year ended June 30, 2024.
2. 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 accoun ting 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 did not have a significant impact on the City's financial statements for the fiscal year ended June 30, 2024.
The City is currently analyzing it s accounting practices to identify the potential impact on the financial statements for the GASB statements as follows:
1. 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 measurem
ent 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 going to be effective for the City’s fiscal year ending June 30, 2025.
2. In December 2023, the GASB issued Stateme nt No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this statement are going to be effective for the City’s fiscal year ending June 30, 2025. 234
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Effects of New GASB Pronouncement
s (Continued)
3. In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this statement are going to be effective for the City’s fiscal year ending June 30, 2026.
H. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported am
ounts 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 established at the fund and department level.
Appropriations generally lapse at the end of the fiscal year to the extent they have not been expended or encumbered.
The Shoreline Regional Park Community Fund's annual budget is presented 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. Budge
ted 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. Supplemental appropriations were approved during the course of the fiscal year as needed.
B. Encumbrance Accounting
Under encumbrance accou
nting, purchase orders, contracts and other 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 ye ar's budget. 235
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2024.
Cash and investments are as follows (dollars in thousands):
The Shoreline Comm
unity's cash and investments of $110.0 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 Policy
The City Council is responsible for the regulatory oversight of the City's cash and in vestments 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 agency 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, neg
otiable certificates of deposit, municipal bonds issued by the City or any of its component units, the Local Agency Investment Fund (LAIF), and Supranational securities.
As of June 30, 2024, the City's cash and investments pool was comprised primarily of investments in securities issued by the U.S. Government and its agencies, me dium term notes, supranational securities, LAIF, bonds issued by the Shoreline Community, and money market mutual funds. The City's cash and investments pool is unrated and has a modified duration of 1.88 years. Additional information regarding the interest rate, credit, concentration of credit risks and fair value hierarchy of the City's cash and investments pool can be found in the notes to the City's basic financial statements.
C. Investments Held by Bond Trustee
The Shoreline Community must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of its debt issues. These funds are pled ged as reserves to be used if the Shoreline Community fails to meet its obligations under these debt issues. The investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City ' s Investment Policy. Thes e debt agreements do not address interest rate, credit and concentration of credit risks.
Ca s h and i nves tments 109,693$
Restricted cas h and i nves tments 10,930
Total cas h and i nves tments 120,623$
236
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 3 CASH AND INVESTMENTS (Conti
nued)
C. Investments Held by Bond Trustee (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 investment, 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 durati
on (modified duration is a measure of a fixed income's cash flows using present values, weighted for cash flows as a percentage of the investments' full price) of its portfolio. The City monitors interest rate risk inherent in investments held by the trustee by using specific identification.
The S
horeline Community's investments in money market mutual funds are available for withdrawal on demand and as of June 30, 2024, have an average maturity of less than 60 days.
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 organization. As of June 30, 2024, the Shoreline Community's investments in money market mutual funds are rated A+ 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 market funds and external investment pools. As of June 30, 2024, none of the Shoreline Community's investments are subject to concentration of credit risk disclosure.
237
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 3 CASH AND INVESTMENTS (Conti
nued)
D. Fair Value Hierarchy
The Shoreline Community categorizes its fair value measurements within the fair 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 inpu
ts; and Level 3 inputs are significant unobservable inputs. The Shoreline Community's investment in the U.S. Treasury Obligations are measured using level 2 inputs, while investment in the City's cash and investments pool and money market mutual funds are not subject to fair value hi
erarchy. Investments measured using level 2 inputs are valued using prices determined by the use of matrix pricing techniques maintained by the pricing vendors for these investments. Matrix pricing is used to value investments based on the investments' relationship to benchmark quoted prices.
NOTE 4 INTERFUND TRANSACTIONS
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, 20 24, Shoreline Regional Park Community Fund transferred $3.9 million, and $2.2 million, to the Shoreline Regional Park Community 2018 Revenue Bonds Fund, and Shoreline Regional Parking Community 2022 Revenue Bonds Fund, respectively, to fund debt service payments.
NOTE 5 TRANSACTIONS WITH THE CITY
Transfers Between the Shoreline Community and the City
The City expends funds on capital projects on behalf of the Shore line 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, 2024, the Sho reline Community transferred to the City $25.8 million to fund capital projects, $1.9 million for equipment replacements, and $55,000 for operating costs. The City transferred $9.1 million to the Shoreline Community to return 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 Com munity 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.
238
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 6 CAPITAL ASSE
TS (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 expense each fiscal year until the asset is fully depreciated. The City has assigned the useful lives to capital assets as follows:
Major outlays for capital assets and im
provements are capitalized as projects are constructed.
A. Capital Asset Activities
Capital assets activity for the fiscal year ended June 30, 2024, is as follows (dollars in thousands):
During the fiscal year ended June 30, 2024, the Shoreline Comm unity transferred certain infrastructure including bridges and culverts; sidewalks, curbs and gutters; and streets and roads funded by the Shoreline Community totaling $14,000 to the City in accordance with the Act.
Buildings 25 to 50 years
Improvements other than buildings 5 to 50 years
Machinery and equipment 3 to 20 years
Traffic signals 20 years
Streetlights 50 years
Balance Balance
Governmental Acti vi ti es June 30, 20 23 Additions Retir ements Tr ansfer s June 30, 2024 Ca pi ta l asset s not being depreciated:
La nd 44,331$ ‐$ ‐$ 3,894$ 48,225$ Cons tructi on in Progre s s 24,741 5,078 ‐ (5,802) 24,017 Tota l ca pi ta l asset s not being depreciated 69,072 5,078 ‐ (1,908) 72,242 Ca pi ta l asset s being depreciated:
Buildings 23,908 ‐ ‐ ‐ 23,908
Impr ov ements other tha n buildings 105,824 ‐ ‐ 1,833 107,657 Ma chi ne ry and equipment 2,314 21 (4) ‐ 2,3 31 Traffic signals 1 , 5 0 0 ‐ ‐ ‐ 1,500 Str eetlights 1,0 09 ‐ ‐ 61 1,070 Tota l ca pi ta l asset s being depreciated 134,555 21 (4) 1,894 136,466 Les s a ccumul a ted depreciation:
Buildings (13,197) (537) ‐ ‐ (13,734)
Impr ov ements other tha n buildings (85,381) (3,397) ‐ ‐ (88,778) Ma chi ne ry and equipment (1,990) (72) 3 ‐ (2,059) Traffic s i gna l s (921) (38) ‐ ‐ (959)
Str eetlights (6 70 ) (21) ‐ ‐ (691)
Tota l a ccumul a ted de pr eciation (102,159) (4,065) 3 ‐ (106,221) Net ca pi ta l asset s being depreciated 32,396 (4,044) (1) 1,894 30,245 Total Capital Assets, Net 101,468$ 1,034$ (1)$ (14)$ 102,487$ 239
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 6 CAPITAL ASSETS (Con
tinued)
B. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each governmental activity function for the fiscal year ended June 30, 2024 are as follows (dollars in thousands):
C. Construction Commitments
The Shoreline Community has active construction projects that include land; im provements other than buildings; and infrastructure. Commitments with contractors for construction, as of June 30, 2024, are as follows (dollars in thousands):
NOTE 7 NONCURRENT LIABILITIES
The Shoreline Community generally incurs long‐term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related de
bt. The Shoreline Community's debt issues and transactions are summarized below and discussed in detail thereafter.
General government 32 $
P ublic safet y 4 0
P ublic works 1,015
Community development 59
Cul ture and recrea ti on 2,919
Total 4,065$
Spent Remaining
to Date Commitment
Improv ements other than bui l di ngs 10,996$ 901$ Buildings 1 ,8 3 6 1,810
Infras tructure 11,185 1,880
Total 24,017$ 4,591$
240
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 7 NONCURRENT LIABILITIES (Continued)
A. Composition and Changes
Noncurrent liabilities activities for the fiscal
year ended June 30, 2024, are as follows (dollars in thousands):
B. Descriptions of Noncurrent Liabilities
2018 Revenue Bonds Shoreline Regional Park Community ‐ On December 19, 2018, the Shoreline Community issued 2018 Revenue Bonds, Series A (Tax‐Exempt) and Series B (Taxable) (2018 Bonds) of $53.5 million and $10.3
million, respectively. Proceeds from the 2018 Bonds were used to provide funds to acquire and construct certain capital improvements of benefit to the Shoreline Community. The 2018 Bonds are special obligations of the Shoreline Community and are secured by a portion of all taxes levied up on all taxable property within the Shoreline Community Principal payments are payable annually on August 1 and interest payments semi‐annually on August 1 and February 1 from property tax revenues generated within the Shoreline Community. The Shoreline Community is considered to be in default if the Shoreline Community f
ails 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 outstandi ng, declare the accreted value and principal of the bonds, together with the accrued interest, to be due and payable immediately.
Or iginal
Issue Balance Balance Due within
Amount June 30, 2023 Addi ti ons Reti rements June 30, 2024 one ye a r Revenue Bonds:
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 5,440 ‐ (217) 5,223 ‐ Subtotal 2018 Revenue Bonds Series A 59,901 58,925 ‐ (217) 58,708 ‐ Shoreline Regional Park Community 2018
Reven
ue Bonds Series B
3.36% to 4.24%, due Fiscal Year 2031‐32 10,315 9,395 ‐ (950) 8,445 985 Shoreline Regional Park Community 2022
Refunding Revenue Bonds Series A
4.83%, due Fiscal Year 2039‐40 21,565 21,565 ‐ (1,144) 20,421 875 Total non‐current liabilities 91,781$ 89,885$ ‐$ (2,311)$ 87,574$ 1,860$ 241
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 7 NONCURRENT LIABILITIES (Continued)
B. Descriptions of Noncurren
t 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 2011 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 refu
nding 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 re
quested 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 ple
dge of future tax increment revenues ends upon repayment of the $142.8 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, 2024, tax increment revenues amounted to $71.2 million, which represented coverage of 11.7 over th
e $6.1 million in debt service.
Annual debt service requirements to maturity are as follows (dollars in thousands):
For the Fiscal Year
Ending June 30 Principal Interest Total
2025 1,860$ 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 2,205 3,607 5,812
2030‐2034 12,520 16,404 28,924
2035‐2039 15,950 12,957 28,907
2040‐2044 18,240 8,836 27,076
2045‐2049 25,506 3,313 28,819
Total 82,351$ 60,450$ 142,801$
242
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8 PENSION PLANS
A. General Information about th
e Pension Plans
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 System (CalPERS), which acts as a common investment and administrative
agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.cal pers.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.
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, age at retirement and compensation. The cost‐of‐living adjustments for the CalPERS plans are applied as spec ified by the Public Employees' Retirement Law. The California Public Employees' Pension Reform Act (PEPRA), which became effective in January 2013, changes the way CalPERS retirement and health benefits are applied, and places compensation limits on members. As such, members who established CalPERS membership on or after January 1, 2013, are known as "PEPRA" memb ers.
The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:
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 actuar y and shall be effective on the July 1 following notice of a change in the rate. The actuarially determined rate is the projected amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Shoreline Community is required to contribute its proportionate share of the difference be tween the actuarially determined rate and the
contribution rate of employees. For Fiscal Year 2023‐24, the Shoreline Community recognized $857,000 as contributions for pension.
Pri or to On or after
Hire Date January 1, 2013 Ja nua ry 1, 2013
Benefit formula 2.7% 55 2.0% @ 62
Benefit ve s ti ng sc hedule 5 ye a rs ser v ic e 5 ye a rs ser v ic e Benefit payment Monthl y for life M onthly for life Retirement age 50+ 52+
Required employ ee contribution ra tes 8.00% 7.00%
Required employ er contribution ra tes 12.18% 12.18%
Mi s cel l a neous
243
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8 PENSION PLANS (Continued)
B. Net Pension Liability
The Shoreline Community's net pensio
n liability in the Plan is measured as the proportionate share of the City's net pension liability. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was det ermined by an actuarial valuation as of June 30, 2022 using standard update procedures. The Shoreline Community's proportion of the net pension liability was based on the projection of the Shoreline Community's long‐term share of contributions to the pension plan relative to the projected contributions of all participating City fund s, actuarially determined.
The change in the Shoreline Community's proportionate share of the net pension liability as of June 30, 2024 and 2023, (measurement dates of June 30, 2023 and 2022, respectively) for the Plan are as follows (dollars in thousands):
Actuarial Assumptions – The total pension liabilities in the June 30, 2022 actuarial valuations were determined using actuarial assumptions as follows:
Proportion ‐ M easurement date June 30, 2023 5,850$ 4.41% Proportion ‐ M easurement date June 30, 2022 5,582 4.44% Cha nge 268 $ ‐0.03%
Proportion of
the Ci ty's
M isc ellaneous
Pl a n
Net Pens i on
L iability
M isc e llaneous Pl a n
Valuation Date June 30, 2022
Mea s ureme nt Date June 30, 2023
Actua ria l Cos t Method Entry‐Age Normal Cos t Method Actua ria l Assumpt ions:
Discount Ra te 6.90%
Infl a ti on 2.30%
Projected Salary Increase Varies by Entry Age and Service Pos t Retirement Benefit Increase The lessor of contra ct COLA or 2.30% until Purcha s i ng Power Protection Allowance Floor on
purchasing power applies, 2.30% thereafter.
M or tality Der iv ed using Ca l PERS Membe rs hi p Data for all Fun d
s (1)
(1) The mortality table used was developed based on Ca l PERS’ spec ific data. The pr obabilities of mor tality ar e based on the 2021 Ca l PERS Experience Study and Review of Actuarial A ssumpt ions. Morta l i ty ra tes inc or por ate full generational mor tality improv ement using 80% of Scale MP‐2020 published by the Society of Actua ries . For mor e details on this ta ble, please refer to the 2021 experience st udy report from November 2021 that ca n be found on the Ca l PERS website. 244
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8 PENSION PLANS (Continued)
B. Net Pension Liability (Continued)
All other actuarial assumptions used
in the June 30, 2022 actuarial 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 C alPERS website under Forms and Publications.
Change of Assumptions – There were no assumption changes in measurement period 2023.
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 as sumed 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 bene fit payments of current plan members. Therefore, the long‐term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which expe
cted future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long‐term expected rate of return, CalPERS took into account both short‐term and long‐ term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were cal
culated 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 rates of return by asset class are as follows:
Assumed Asset
As s et Cl a s s Allocation Real Return
(1, 2)
Global Equity ‐ ca p‐wei ghted 30.00% 4.54%
Global Equity ‐ non ‐ca p‐wei ghted 12.00% 3.84%
Pri va te Equi ty 13.00% 7.28%
Trea s ury 5.00% 0.27%
Mortgage ‐backed Securi ti es 5.00% 0.50%
Inv estment Grade Corpora tes 10.00% 1.56%
High Yi el d 5.00% 2.27%
Emerging Ma rke t Debt 5.00% 2.48%
Pri va te Debt 5.00% 3.57%
Real As s ets 15.00% 3.21%
Levera ge ‐5.00% ‐0.59%
Tota l 100%
(1) ‐ An expected inflation of 2.30% used for this period. (2) ‐ Figures ar e based on the 2021 Asset L iability Ma na ge me nt study . 245
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8 PENSION PLANS (Continued)
B. Net Pension Liability (Continued)
Sensitivity of the Net Pe
nsion Liability to Changes in the Discount 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 calc ulated 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):
C. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the fiscal year ended June 30, 2024, the Shoreline Community recognized pension expense of $1,030,000. The Shoreline Community
reported deferred outflows of resources related to pensions by sources for the fiscal year ended June 30, 2024 are as follows (dollars in thousands):
As of June 30, 2024, the Shoreline Community reported $857,000 as deferred outflows of resources related to contribu
tions subsequent to the measurement date which will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2025. 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):
Curre nt
Discount Rate
‐1% (5.90%)
Discount Rate
(6.90%)
Discount Rate
+1% (7.90%)
Shoreline Community's proportionate
shar e of the Ci ty's M isc ellaneous Pl a n
net pension liabilit y 8 , 9 4 0 $ 5,850$ 3,299$ De fe rre d De fe rre d
Outfl ows of Inflows of
Resour c es Resour c es
Pe ns i on contri buti ons subsequent to measurement da te 857$ ‐$ Differences between ac t ual and ex pected ex per ience 2 8 1 (29) Cha nge s in assumpt ions 1 8 8 ‐
Net differences between projected and ac t ual ear nings on plan i nve s tments 790 ‐
Tota l 2,116$ (29)$
Year Ending
June 30 Total
2025 425 $
2026 204
2027 530
2028 71
Total 1,230$
247
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 9 OTHER POSTEMPLOYME
NT BENEFITS
A. General Information about the OPEB Plan
Plan Descriptions – By Council resolution and through agreements with its labor units, the City provides certain health care benefits for retirees (spouse and dependents are not included for CalPERS Miscellaneous employees, but are included for CalPERS Safety employees in the CalPERS Health Program governed by the Public Employees' Medical and Hospital Care Act (PEHMCA)) under a single employer defined benefit OPEB plan. In December 2008, the City entered into an agreement with CalPERS to participate in CERBT, an agent multiple‐employer other postemployment benefits plan, to fund the City's OPEB. CERBT is administrated by CalPERS, is managed by an appointed board
not under the control of the City Council. CERBT issues a publicly available financial report that can be found on the CalPERS website at www.calpers.ca.gov. The Shoreline Community participates in a cost‐sharing arrangement in the City's OPEB plan and a proportionate share of OPEB balanc
es are allocated to the Shoreline Community.
The City also offers a Defined Contribution (DC) Plan to eligible miscellaneous employees. If an employee elects to participate in the DC Plan, the City makes contributions on behalf of the employee into a Health Savings Account (HSA). Employees who have elected the DC Plan are not in cluded in the City's actuarial valuation for OPEB.
Benefits Provided – The City provides medical and vision OPEB benefits. Additional information regarding the benefits provided for the City's OPEB plan can be found in the notes to the City's basic financial statements.
Contribut
ions – The City's OPEB funding policy is to contribute 100 percent or more of the actuarially determined contribution each year. For the fiscal year ended June 30, 2024, the Shoreline Community's contributions totaled $44,000.
B. Net OPEB Liability
The Shoreline Community's net OPEB liability in the City's OPEB Plan is measured as the proportionate share of the City's net OPEB l
iability. The City's net OPEB liability is measured as of June 30, 2023 was determined by an actuarial valuation as of June 30, 2023 using standard update procedures. The Shoreline Community's proportion of the net OPEB liability was based on the projection of the Shoreline Comm unity's long‐term share of contributions to the OPEB plan relative to the projected contributions of all participating City funds, actuarially determined.
The change in the Shoreline Community's proportionate share of the net OPEB liability as of June 30, 2024 and 2023 (measurement dates of June 30, 2023 and 2022, respectively) for the OP EB Plan is as follows (dollars in thousands):
Net OPEB
Liability
Proportion of
the Ci ty's OPEB
Pl a n
Proportion ‐ M easurement date June 30, 2023 44$ 0.52% Proportion ‐ M easurement date June 30, 2022 58 0.55% Cha nge (14)$ ‐0.03%
247
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability (Continued)
Actuarial Assumptions – The total OPEB liability as of June 30, 2023 were determined using actuarial assumptions as follows:
Change in Assumptions – During the measurement period 2023, the healthcare cos trend rates were changed to 6.5 percent in 2025, fluctuating down to 3.9 percent by 2075, Mortality was changed to based on 2021 CalPERS Experience Study, and Mortality Improvement was changed to based on MW Scale 2022.
Discount Rate ‐ The discount rate used to measure the total OPEB liability is 5.6 percent. The projection of cash flows used to determine the discount rate assumed that the City's contribution will be made equal to the actuarially determined contribution. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long‐term expected rate of return on OEPB plan investments is applied to all periods of projected benefit payments to determine the total OPEB Liability.
The long‐term expected rate of return for OPEB plan investments is 5.6 percent. Using historical returns of all the funds' asset classes, expected compound geometric 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:
Valuation Date June 30, 2023
Measurement Date June 30, 2023
Actuaria l Cos t Method Entry‐Age Normal Cos t Me thod Actuaria l A ssumpt ions:
Discount Ra te 5.60%
Inflation 2.50%
Projected Salary Increa s e 3.00%
Healthcare cos t trend ra tes 6.5% in 2025, fluctuating down to 3.9% by 2075 2 0 2 1 Ca l PERS Experience StudyMortali ty
Mortali ty Improv ement M W Scale 2022
(1) Demographic actuar ial assumptions used ar e based on the 2021 Ca l PERS Experience Study for the period from 1997 to 2019, ex cept for using the Ma cLe od Wa tts Scale 2020 applied gener ationally from 2015 as the basis to project future mor ality improv ements.
Current
Target Real Return Real Return
Asset Cl a s s Alloc ation Years 1‐5
(1)
Years 6‐20
(2)
Global Equi ty 34.00% 6.80% 6.80%
Fixed Income 41.0 1.40 4.50
REITS 17.0 5.40 6.20
TIPS 5.0 0.60 3.60
Commodi ti es 3.0 3.20 3.50
To derive the ex pected future trus t return specifically for the Ci ty, we first adjust ed Ca l PERS' future return ex pectations to align with the 2.5% general inflation assumpt ion used in this report.
Then apply ing the plan spec ific benefit payments (as determined from the June 30, 2023, v aluation) to Ca l PERS' bifurcated return ex pectation, we determined the single equiv alent long ‐term ra te of return to be 5.60%.
248
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate – The Shoreline Community ' s proportionate share of the net OPEB liability, calculated using the discount rate of 5.6 percent, as well as what the net OPEB liability would be if it were calc ulated 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):
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):
C. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the Shoreline Community recognized OPEB expense of $44,000. As of June 30, 2024, the Shoreline Community reported $44,000 as deferred outflows of resources related to contributions for OPEB subsequent to the measurement date, which will be recognized as a r eduction of the net OPEB liability in the fiscal year ending June 30, 2025.
NOTE 10 RISK MANAGEMENT
The Shoreline Community is covered under the City's insurance program and therefore contributes its proportionate share of cost. The City is exposed to various risks of loss related to torts, errors and omissions, injuries to employees or others, and unemployment. 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 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.
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 $1.0 million per incident. ACCEL is a joint powers authority of mediu
m‐sized California municipalities, which pools catastrophic general liability, automobile liability and public officials' errors and omissions losses.
Additional information regarding the City's insurance program can be found in the notes to the City's basic financial statements
Current
Discount Rate
‐1% (4.60%)
Discount Rate
(5.60%)
Discount Rate
+1% (6.60%)
158.00$ 44$ (50)$ Healthcare Healthcare Healthcare
Cos t Trend Cost Trend Current Cos t Trend
Rate ‐1% Ra te Ra te +1%
(56)$ 44$ 166$ 249
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 position, which is determined at the Governme nt‐wide level and are described as follows:
Net investment in capital assets ‐ This caption groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt, 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 ne
t position of the Shoreline Community not restricted for any project or purpose.
B. Fund Balances
Governmental fund balances represent the assets and deferred outflows of resources less the liabilities and deferred inflows of resources of each fund. Governmental funds report fund balance in classifications based primarily on the ext
ent to which the Shoreline Community is bound to honor constraints on how specific amounts in the funds can be spent. For programs with multiple funding sources, the Shoreline Community prioritizes and expends funds in the following order: Restricted, Committed, Assigned and Unassigned. Each category in the following hierarchy is ranked a
ccording to the degree of spending constraint as follows:
Nonspendable fund balances are amounts that cannot be spent because they are either (a) not in spendable form; or (b) legally or contractually required to be maintained intact.
Restricted fund balances have external restrictions imposed by creditors, grantors, contr ibutors, 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, 2024, the Shoreline Community has restricted fund balances of $105.0 million for Shoreline Community indebt
edness and $6.2 million for debt service.
Committed fund balances have constraints imposed by resolution of the Board, which may only be altered by resolution of the Board. Nonspendable amounts subject to Board commitments are included along with spendable resources. As of June 30, 2024, the Shoreline Community has committed fund balances of $3.8 million for capital projects.
250
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 11 NET POSITION AND FUND BALANCES (Co
ntinued)
B. Fund Balances (Continued)
Assigned fund balances are amounts constrained by the Board's intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the Board or its designees and may be changed at the discretion of the Board or its designees. The Board has not delegated the authority to make assignments of fund balance. Th
is category 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 Shoreline Regional Park Communi ty Special Revenue Fund shall maintain a reserve of 25 percent of operating expenditures; the landfill reserve shall be incrementally increased to accumulate funds to rebuild the landfill system based on the most recent Landfill Master Plan. The reserve shall have adequate balance to rebuild the landfill system, in case of a catastrophic event; and th e sea level rise reserve is to be incrementally increased to accumulate funds for projects identified in the most recent Shoreline Sea Level Rise Study. The contributed amount shall be determined annually based on the available resources, timeline of the projects, and results of the Shoreline 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 CalRecycl e. 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 $1.3 million for the fiscal year ended June 30, 2024, and $12.0 million to rebuild a new landf ill system. As of June 30, 2024, the City restricted $12.0 million for landfill containment and planned to increase the balance to accumulate funds to rebuild the landfill system based on the most recent Landfill Master Plan.
NOTE 12 COMMITMENTS AND CONTINGENCIES
A. Encumbrances
The Shoreline Community's outstandin
g encumbrances as of June 30, 2024, are $332,000 recorded as part of restricted fund balance.
251
Mountain View Shoreline Regional Park Community
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 12 COMMITMENTS AND CONTINGENCIES (Continued)
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, supersed ing 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 educational and technology capacity of students in the districts, which will con tribute 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 subseque nt fiscal year increases based on growth in property tax revenues in the preceding fiscal year. For the fiscal year ended June 30, 2024, the Shoreline Community paid a total of $10.7 million in contributions to the school districts, including $6.5 million to MVWSD and $4.2 million to MVLAUHSD.
A one‐
year successor agreement was executed in June 2023 for the period of July 1, 2023 through June 30, 2024. An amendment was subsequently executed in Oct 2024, extending the agreement through June 30, 2027.
C. Tax Revenue Sharing
Pursuant to an agreement between the City, the Shoreline Community, and the County dated June 22, 2005, the Shoreline Community is annually obligated to pay the County from tax revenues, an amount equal to the County’s total retirement tax override levies and pass‐through an additional amount of taxes that would have been allocated to the County in the absence of the existence of the Shoreline Commu nity. For the fiscal year ended June 30, 2024, $2.4 million and $3.1 million in retirement tax override levies and pass‐through payments, respectively, were paid to the County.
252
REQUIRED
SUPPLEMENTARY INFORMATION
253
Mountain View Shoreline Regional Park Community
Required Supplementary Information
For the year ended June 30, 2024
(Dollars in Thousands)
Schedule of the Shoreline Community Pension Contributions Fiscal Year Ended June 30, 2015 2016 2017
Contractually required
contributions (actuarially determined) (CRC) 359$ 509$ 565$ Contributions in relation to the CRC (359) (509) (565) Contribution deficiency (excess) ‐$ ‐$ ‐$
Covered payroll 1,520$ 1,622$ 1,797$ Contributions as a percentage of
covered payroll 23.6% 31.4% 31.4%
ADC for fiscal year June 30, 2024
Actuarial valuation date June 30, 2021
Actuarial cost
method Entry‐Age Normal Cost Method
Asset valuation method Actuarial value of assets
Inflation 2.30%
Salary increases Varies by entry age and services
Payroll growth 2.80%
Investment rate of return
Retirement age
Mortality improvement
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2024 were as follows:
4.50%, net of pension plan investment and
administrative expenses, includes inflation.
The probabilities of retirement are based on the
2021 CalPERS Experience Study.
The probabilities of mortality are based on the
2021 CalPERS Experience Study.
254
2018 2019 2020 2021 2022 2023 2024
819$ 779$ 847$ 680$ 761$ 768$ 857$ (819) (779) (847) (680) (761) (768) (857)
‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$
1,907$ 2,009$ 2,037$ 2,149$ 2,301$ 2,233$ 2,760$
42.9% 38.8% 41.6% 31.6% 33.1% 34.4% 31.1%
255
Mountain View Shoreline Regional Park Community
Required Supplementary Information
For the year ended June 30, 2024
(Dollars in Thousands)
Schedule of the Shoreline Community's Proportionate Share of the Net OPEB Liability Fiscal Year Ended June 30, 2018 2019 2020
Measurement Period 2017 2018 2019
Shoreline Community's proportion of the net OPEB liability (NOPEBL) 3.3% 1.1% 6.8%
Shoreline Community's proportionate share of the NOPEBL 1,085$ 290$ 602$ Shoreline Community's covered payroll 1,797 1,907 2,009 Shoreline Community's proportionate share of the NOPEBL as a percentage of its covered payroll 60.4% 15.2% 30%
City
OPEB Plan's fiduciary net position as a percentage
of the City OPEB Plan's total OPEB liability 76.9% 82.8% 93.9% Note to schedule:
*Fiscal year ended June 30, 2018 was the first year of implementation of GA5B Statement No. 75, therefore only SEVEN years of information is shown.
Change In assumptions‐ During measurement period 2019, the discount rate was reduced from 6.50% to 6.25%.
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% to 6.00%. Inflation rate was reduced from 2.75% to 2.50%. 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% to 5.60%. During the measurement period 2023, the healthcare cos trend rates were changed to 6.5% in 2025, fluctuating down to 3.9% by 2075, Mortality was changed to based on 2021 CalPERS Experience Study, and Mortality Improvement was changed to based on MW Scale 2022.
256
2021 2022 2023 2024
2020 2021 2022 2023
2.1% ‐0.5% 0.5% 0.5%
112$ 127$ 58$ 44$
2,037 2,149 2,301 2,233
5.5% 5.9% 2.5% 1.97%
96.4% 117.3% 93.5% 94.80%
257
Mountain View Shoreline Regional Park Community
Required Supplementary Information
For the year ended June 30, 2024
(Dollars in Thousands)
Schedule of the Shoreline Community's Proportionate Share of the Net Pension Liability Fiscal year ended 6/30/2015 6/30/2016 6/30/2017
Measurement Period 2014 2015 2016
Shoreline Community's proportion of the net pension liability (NPL) 4.5% 4.5% 4.5% Shoreline Community's proportionate share of the NPL 3,783$ 4,177$ 4,948$ Shoreline Community's covered payroll 1,429 1,520 1,622 Shoreline Community's proportionate share of the NPL
as a percentage of its covered payroll 264.6% 274.8% 305.1% City
Miscellaneous Plan's fiduciary net position as a percentage of the City Miscellaneous Plan's total pension liability 74.9% 73.4% 70.0% Note to schedule:
Benefit Changes‐ The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurre d on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.
Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68.
Change In assumptions‐ During measurement period 2014, the discount rate was 7.50%. During measurement period 2015, the discount rate was increased from 7.50% to 7.65%. There is no change in discount rate during measurement period 2016. During measurement period 2017, the discount rate was reduced from 7.65% to 7.15%. During measurement period 2018, demographic assumptions and inflation rate were changed in accordance to the 2017 CalPERS Experience Study. There were no changes in assumptions during measurement periods 2019, 2020, and 2021.
During measurement period 2022, the discount rate was reduced from 7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study. There were no changes in assumptions during measurement period 2023. 258
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 2017 2018 2019 2020 2021 2022 2023
4.5% 4.5% 4.5% 4.5% 4.6% 4.4% 4.4%
5,431$ 5,038$ 5,032$ 5,268$ 2,788$ 5,582$ 5,850$ 1,797 1,907 2,009 2,037 2,149 2,301 2,233
302.2% 264.2% 250.5% 258.6% 129.7% 242.6% 262.0%
70.2% 73.4% 74.8% 74.8% 87.5% 75.5% 75.4%
259
Mountain View Shoreline Regional Park Community
Required Supplementary Information
For the year ended June 30, 2024
(Dollars in Thousands)
Schedule of the Shoreline Community OPEB Contributions
Fiscal Year Ended June 30, 2017 2018 2019 2020
Contractually required
contributions (actuarially determined) (ADC) 1,014$ 1,085$ 290$ 602$ Contributions in relation to the ADC (1,014) (1,085) (290) (602) Contribution deficiency (excess) ‐$ ‐$ ‐$ ‐$
Covered payroll 1,797$ 1,907$ 2,009$ 2,037$ Contributions as a percentage of
covered payroll 56.4% 56.9% 14.4% 29.6%
ADC for fiscal year June 30, 2024
Actuarial
valuation date June 30, 2023
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 5.60%
Post Retirement Benefit Increase
Mortality
Mortality Improvement Based on MacLeod Watts Scale 2022 The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2023 were as follows:
For medical plan premiums: 6.50% for the year beginning, fluctuating down to 3.90% by 2075
Based on 2021 CalPERS Experience Study
*Fiscal year ended June 30, 2017 was the first year of implementation of GASB Statement No. 75, therefore only eight years of information is shown.
260
2021 2022 2023 2024
112$ 127$ 58$ 44$
(112) (127) (58) (44)
‐$ ‐$ ‐$ ‐$
2,149$ 2,301$ 2,233$ 2,760$
5.2% 5.5% 2.6% 1.6%
261
262
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OTHER SUPPLEMENTARY INFORMATION
263
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Mountain View Shoreline Regional Park Community
Shoreline Regional Park Community Fund
June 30, 2024
The Administrative Fund in accordance with the Act, accounts for moneys may be transferred from the Special Fund for deposit to pay for the administrative expenses and overhead of the Shoreline Community.
The Special Fund in accordance with the Act, accounts for all tax revenues received by the Shoreline Community are deposited in the Special Fund and will be used to pay the principal of and interest on loans, advances, or other indebtedness of the Shoreline Community.
The North Bayshore Impact Fee Fund accounts for the revenues collected for fees adopted to assist with funding improvements in the Shoreline Community.
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Mountain View Shoreline Regional Park Community
Combining Balance Sheet
Shoreline Regional Park Community Fund
June 30, 2024
(Dollars in Thousands)
Total
ASSETS
Cash and investments 102,183$ 3,859$ 3,651$ ‐$ 109,693$ Restricted cash and investments 4,723 ‐ ‐ ‐ 4,723 Receivables:
Accounts 109 ‐ ‐ ‐ 109
Interest 938 ‐ 135 ‐ 1,073
Total assets 107,953$ 3,859$ 3,786$ ‐$ 115,598$ LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 6,353$ ‐$ ‐$ ‐$ 6,353$ Refundable deposits 53 ‐ ‐ ‐ 53
Unearned revenue 99 ‐ ‐ ‐ 99
Total liabilities 6,505 ‐ ‐ ‐ 6,505
Fund Balances:
Restricted 97,662 3,859 3,786 ‐ 105,307
Committed 3,786 ‐ ‐ 3,786
Total fund balances 101,448 3,859 3,786 ‐ 109,093 Total liabilities, deferred inflows of
resources and fund balances 107,953$ 3,859$ 3,786$ ‐$ 115,598$ Shoreline Regional
Park Community
Administrative
Shoreline Regional
Park Community
Special
North
Bayshore
Impact Fee
Interfund
Elimination
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Mountain View Shoreline Regional Park Community
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Shoreline Regional Park Community Fund
For the year ended June 30, 2024
(Dollars in Thousands)
Total
REVENUES:
Property taxes ‐$ 71,154$ ‐$ ‐$ 71,154$
Use of money and property 6,576 128 671 ‐ 7,375
Charges for services 39 ‐ ‐ ‐ 39
Other 58 ‐ ‐ ‐ 58
Total revenues 6,673 71,282 671 ‐ 78,626
EXPENDITURES:
Current:
General government 25,405 ‐ ‐ ‐ 25,405
Public safety 93 ‐ ‐ ‐ 93
Public works 1,162 ‐ ‐ ‐ 1,162
Community development 442 ‐ ‐ ‐
442
Culture and recreation 4,107 ‐ ‐ ‐ 4,107
Capital outlay 21 ‐ ‐ ‐ 21
Total expenditures 31,230 ‐ ‐ ‐ 31,230
REVENUES OVER (UNDER)
EXPENDITURES (24,557) 71,282 671 ‐ 47,396
OTHER FINANCING SOURCES (USES):
Transfers in 65,509 ‐ ‐ (65,509) ‐
Transfers out ‐ (71,562) ‐ 65,509 (6,053)
Transfers from the City of Mountain View 5,654 ‐ 3,449 ‐ 9,103 Transfers
to the City of Mountain View (13,053) ‐ (14,628) ‐ (27,681) Total other financing sources (uses) 58,110 (71,562) (11,179) ‐ (24,631) Net change in fund balances 33,553 (280) (10,508) ‐ 22,765 FUND BALANCES:
Beginning of year 67,895 4,139 14,294 ‐ 86,328
End of year 101,448$ 3,859$ 3,786$ ‐$ 109,093$ Shoreline Regional
Park Community
Administrative
Shoreline Regional
Park Community
Special
North
Bayshore
Impact Fee
Interfund
Elimination
268
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
Board of Directors of the
Mountain View Shoreline Regional Park Community
City of Mountain View, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( Government Auditing Standards ), the financial statements of the governmental activities and each major fund of the Mountain View Shoreline Regional Park Community (Shoreline Community), a component unit of the City of Mountain View (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Shoreline Community’s basic financial statements, and have issued our report thereon dated November 22, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the fi nancial statements, we considered the Shoreline Community’s internal control over financial report ing (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of ex pressing an opinion on the effectiveness of the Shoreline Community’s internal control. Accord ingly, we do not express an opinion on the effectiveness of the Shoreline Community’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of perf orming their assigned func tions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the lim ited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consid er to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Board of Directors of the
Mountain View Shoreline Regional Park Community
City of Mountain View, California
Report on Compliance and Other Matters
As part of obtaining
reasonable assurance ab out whether the Shoreline Community’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financ ial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This re port 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.
Badawi & Associates, CPAs
Berkeley, California
November 22, 2024
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MountainView.gov
Celebrating the 40th Anniversary of Shoreline at Mountain View Regional Park