42 This page intentionally left blank
City of National City
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
43 NOTE DESCRIPTION PAGE
1 Reporting Entity and Summary of Significant Accounting Policies 45
2 Cash and Investments 58
3 Leases Receivable and Related Deferred Inflows of Resources 64
4 Loans Receivable 65
5 Interfund Balances and Transactions 68
6 Capital Assets 69
7 Long-Term Debt 70
8 Compensated Absences 76
9 Other Required Fund Disclosures 77
10 Self-Insurance Accrued Liabilities 78
11 Pension Plans 79
12 Other Postemployment Benefits 87
13 Commitments and Contingencies 91
14 Classification of Fund Balances 92
15 Prior Period Adjustments 93
16 Net Investment in Capital Assets 94
17 Subsequent Events 94
44 This page intentionally left blank
City of National City
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
45 Note 1 – Reporting Entity and Summary of Significant Accounting Policies
The basic financial statements of the City of National City, California (the “City”) have be en prepared in conformity with accounting principles generally accepted of the Un ited States of America (“US GAAP”) as applied to governmental agencies. The Governmental Accounting Sta ndards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial re porting principles. The more significant of the City’s accounting policies are described below.
A. Reporting Entity
The City was incorporated September 17, 1887 under the general laws of the State of California. The City operates under a Council-Manager form of government and provi des basic local governmental services including public safety (police and fire), maintenance and construction of public improvements, cultural, recreation, planning, zoning, transportation, health services and general administration. In additi on, the City operates the Community Development Commission (which formerly included the Morgan Towers and Ki mball Towers Enterprise Funds).
The City sold Kimball Towers and Mo rgan Towers to two not-for-profit organizations on March 28, 2019. The sale was intended to ensure the feasibility of the renova tion, since not-for-profit organizations have financing sources that are unavailable to a developer such as a City.
In evaluating how to define the City for financial re porting purposes, management has considered all potential component units. The primary criteria for including a pot ential component unit within the reporting entity are the governing body’s financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship if it appoints a voting majority of an organi zation’s governing body and it is able to impose its will on the organization, or if there is a potential for the organi zation to provide specific fina ncial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of wh ether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organiza tion to provide specific financ ial benefits to, or impose specific financial burdens on the primary government.
Blended Component Units
The financial reporting entity consists of the primary government, the City , and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government is accountable and their exclusion would cause the reporting en tity’s financial statements to be misleading or incomplete.
Blended component units, although legally separate entities, ar e, in substance part of the government’s operation and so data from these units are combined with data of the primary government. Discretely presents component units, on the other hand, are reported in a separate column in the combined financial st atements to emphasize that they are legally separate from the government.
Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substan tially the same as the City’s and there is a financial benefit or burden relationship between the City and the co mponent unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclus ively, benefits the City, even though it does not provide services directly to it.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
46 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
A. Reporting Entity (Continued)
Blended Component Units (Continued)
National City Joint Powers Financing Authority
The National City Joint Powers Financ ing Authority (the “NCJPFA”) was created pursuant to a joint exercise of powers agreement entered into by and between the City and the CDC on April 16, 1991. The purpose of such agreement was to provide for the financing and construc tion of a new police facility and a new community center.
The NCJPFA is administered by a commission consisting of the members of the City Council and all voting power of the NCJPFA resides in the commission. The NCJPFA exclusively benefits the City. In 2017 the NCJPFA facilitated the lease financing of the 2017 Energy Savings Project. There are no separate financial statements available.
Parking Authority of the City of National City
In July 1977, the Parking Authority of the City of Nati onal City (the “Parking Authority”) was activated pursuant to the Parking Law of 1949 for the financing and construc tion of the Plaza Bonita Parking Facility. Currently it is used to account for the City’s parking enforcement activ ities and developing solutions to demand for parking in various sections of the City. The City Council is the gove rning board of the Authority. The Authority exclusively benefits the City. The capital assets of the Parking Au thority have been included in the Government-Wide Financial Statements. There are no separate financial statements available.
Community Development Commission of the City of National City
The National City Redevelopment Agency (the “RDA”), pursuant to provisions of the California Health and Safety Code, was established in April 1967 to undertake a nd carry out the redevelopment of certain areas within the City that were determined to be blighted. In 1975 , the City formed the Housing Authority and concurrently established the Community Development Commission (the “CDC”) to oversee both the RDA and the Housing Authority. In 2012, redevelopment agencies throughout the state of California were dissolved, including the National City RDA. The CDC remains as an active entity with respect to its Housing Authority functions. The City Council is the Governing Board of the CDC. There are no separate financial statements available.
The following specific criteria were used in determining the status of these component units:
Members of the City Council also act as the governing body of the NCJPFA, the Parking Authority, and the CDC;
The City, the NCJPFA, the Parking Authority, and the CDC are financially interdependent;
The NCJPFA, the Parking Authority, and the CDC are managed by employees of the City, who provide various support functions including financial reporting and investment decisions.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
47 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contr actual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.
The Statement of Net Position and Balance Sheet – G overnmental Funds report separate sections for deferred outflows of resources, and deferred inflows of resources, when applicable.
Deferred Outflows of Resources represent outflows of resources (consump tion of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time.
Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time.
Government - Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduc iary activities of the City are not included in these statements.
These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and lia bilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accomp anying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those repr esenting balances between the governmental activities and the business-type activities, whic h are presented as internal balances and eliminated in the total primary government column. In the Statemen t of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however , those transactions between governmental and business- type activities have not been eliminated. The following interfund activities have been eliminated:
Due to/from other funds
Advances to/from other funds
Transfers in/out
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
48 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Bala nce Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds a ggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the Government -Wide Financial Statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expend itures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expend itures and other financing u ses) in net current assets.
Under the modified accrual basis of ac counting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recognized as soon as they are both “measura ble” and “available”. Revenues are considered to be available when they are collectible w ithin the current period or as soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
The Reconciliation of the Fund Financial Statements to th e Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds:
General Fund – This is the primary operating fund of the C ity. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund.
Housing Asset Special Revenue Fund – This fund was established in 2012 pursuant to the redevelopment agency dissolution legislation to account for the assets and activities of the former RDA’s Low-and-Moderate- Income Housing Fund.
Housing Choice Voucher Program (“Section 8”) Special Revenue Fund - This fund is used to account for the activities of Housing Assistance Program. The progr am provides rental assistance to low-income families by subsidizing a portion of the rent directly to landl ords on behalf of low-income households. The major revenue source for this fund is Housing Assistance Payments and Administrative Fees.
Sewer Service Special Revenue Fund - This fund is used to account for the collection of sewer connection fees and sewer service charges billed and paid via th e County’s annual property tax collection system which are used for the construction and maintenance of the C ity’s sewer system. The major revenue source for this fund is the sewer service charge.
ARPA Special Revenue Fund – This fund is used to account for the proceeds and expenditures of the American Recovery Plan Act funding received by the City.
Other Special Revenue Fund - This represents a combination of minor a nd less active funds that the City has combined for reporting purposes. The major revenue s ources consist of intergovernmental revenues, user- charge fees, franchise fees, and development impact fees.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
49 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
Housing Authority Special Revenue Fund - This fund is used to account for the activities of the development of a viable urban community by providing decent hous ing, a suitable living environment, and expanding economic opportunities, principally for persons with low and moderate incomes.
POB Debt Service Fund - This fund is used to account for the sources and uses of and debt service on the 2021 Pension Obligation Bonds.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statemen t of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Fl ows. All of the City’s proprietary funds are internal service funds. A column representing internal service funds is presented in these statements. Internal service fund balances and activities have been comb ined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include sev en individual funds which provide services directly to other City funds. These areas of service include Facilities Maintenance, Liability Insurance, Information Systems Maintenance, Office Equipment Depreciation, Telecommunications, Vehicle Re placement, and Vehicle Maintenance.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurre nt) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which th e liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
The City reports the following proprietary funds (all are internal service funds) that are funded by user departments on a cost reimbursement basis:
Facilities Maintenance Fund —This fund is used to account for the cost of maintaining all City-owned buildings in a clean, safe, workable, and pleasant condition.
Liability Insurance Fund —This fund is used to account for the costs of maintaining the City’s Worker’s Compensation and liability insurance programs.
Information Systems Maintenance Fund —This fund is used to account for the costs to maintain and replace City information technology software and hardware and related equipment as well as pay for the City staff that provide support to other City departments on a daily basis.
Office Equipment Depreciation Fund —This fund is used to account for the costs to replace City office equipment.
Telecommunications Revolving Fund —This fund is used to account for th e costs of maintaining the City’s telecommunication systems.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
50 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
Motor Vehicle Service Fund —This fund is used to account for the C ity’s costs of preventative maintenance and repairs for its fleet, including police, fire, ge neral administrative, park, sewer, and public works equipment.
Vehicle Replacement Fund —This fund is used to account for the costs to lease or purchase new or replacement City fleet vehicles and related equipment.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements in clude a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent agency funds and private purpose trust funds. Both the agency funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.
Fiduciary fund types are accounted for according to the na ture of the fund. The City ’s Custodial funds (Cobra Insurance and Miscellaneous Developer’s Deposits) are purely custodial in nature. These funds are used to account for money and property held by the City as trustee or custodian.
The City has one active private purpose trust fund, the Redevelopment Obligations Retirement Fund, which is used to report the assets, liabilities, and activities of the Successo r Agency to the former redevelopment agency. The Successor Agency to the Community Development Commissi on as the National City Redevelopment Agency (the “Successor Agency”) was created by the City Council of National City (City Council) in January 2012. It was established pursuant to Assembly Bill X1 26. Its purpose is to expeditiously wind down the affairs of the dissolved Redevelopment Agency. The governing body of the Successor Ag ency is comprised of the members of the City Council. Certain actions of the Successor Agency Board are subject to review by the Countywide Oversight Board and the California State Department of Finance. The Successor Agency has been in cluded in the accompanying basic financial statements as a private purpose trust fund. Its results of operations are presented on the Statement of Changes in Fiduciary Net Position.
C. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purpo ses. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.
Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Mark et value is used as fair valu e for those securities for which market quotations are readily available.
The statement of cash flows requires presentation of “cash and cash equivalents”. For the purposes of the statement of cash flows, the City considers all proprietary fund pooled cash and inv estments as “cash and cash equivalents”, as such funds are available to the various funds as needed.
Certain disclosure requirements, if applicable, for deposit and investment risks in the following areas:
Interest rate risk
Credit risk
- Overall
- Custodial credit risk
- Concentration of credit risk
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
C. Cash, Cash Equivalents and Investments (Continued)
Foreign currency risk
In addition, other disclosures are speci fied including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.
D. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair valu e, and establishes disclosures about fair value measurement. Investments, unless otherwise specified, are recorded at fair value in the Statements of Net Position, and are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The levels of inputs are as follows:
Level 1 – Inputs are unadjusted, quoted prices for iden tical assets or liabilities in active markets at the measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.
Investments that don’t fit into one of the three levels of inputs are described as “uncategorized.”
E. Leases
The City is a lessor for leases of land and recognizes lea ses receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.
At the commencement of a lease, the lease receivable is meas ured at the present value of payments expected to be received during the lease term. Subsequently, the lease r eceivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencemen t date. Subsequently, the deferred inflows of resources are recognized as revenue over th e life of the lease term in a systematic and rational method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses the average of the LAIF rate and the incremental borrowing rate (IBR) provided by the City’s financial institutions at July 1, 2021 for exis ting leases or the current rate at the time a new lease is executed.
The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
Lease receipts included in the measurement of the l ease receivable is composed of fixed payments from the lessee.
The City monitors changes in circum stances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
52 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
F. Inventories and Prepaid items
Inventories are valued on an average-cost basis which is adjusted to annual physical counts or estimates under the consumption method of accounting and are recorded in the internal service funds. Prepaid items are items the City has paid in advance and will receive future benefit from.
G. Restricted Assets
Fiscal agents acting on behalf of the City hold investment funds placed in irrevocable IRS Section 115 pension and OPEB trusts. These funds are restricted by the trust agreem ents and are to be used only for pension and/or OPEB contributions or benefit payments.
H. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” or “advances to/from other funds” (i.e., the current portion of interfund loans). Any residual balances outst anding between the governmental activities and business- type activities are reported in the Governmental-Wide Financial Statements as “internal balances.”
I. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available.
Donated capital assets are valued at their estimated acquis ition value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $5, 000 (including infrastructure assets). Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Buildings and improvements 10 -50 years
Machinery and equipment 2 -20 years
Infrastructure 25 -75 years
Radio rights 20 years
For all infrastructure systems, the City elected to use the basic approach for infrastructure reporting. The City defines infrastructure as the basic physi cal assets that allow the City to f unction. The assets include the streets, water purification and distribution system, sewer collecti on and treatment system, parks and recreation, lands and improvements, storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major in frastructure system can be divided into subsystems. For example, the street syst em can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land.
These subsystems were not delineated in the basic fina ncial statements. The appropriate operating department maintains information regarding the subsystems.
The governmental fund financial statements do not present capital assets but capital assets are shown in the Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
J. Land Held for Resale
Land held for resale is valued at the lower of cost or net realizable value. The reported amount is classified as nonspendable net position in the General Fund and in the Housing Special Revenue Fund.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
K. Compensated Absences
In government-wide financial statements and the propriet ary fund financial statements, compensated absences are recorded as expenses and liabilities as incurred.
In governmental fund financial statements, compensated ab sences are recorded as expend itures in the years paid, and it is the City’s policy to liquidate any unpaid vacation, sick leave, or compensatory time at year-end from future resources rather than currently available and e xpendable resources. The Genera l Fund and internal service funds are typically used to liquidate compensated absences.
L. Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other financial obligations are reported as liabilities in the appropriate funds.
Bond premiums and discounts are deferred and amortized ove r the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable premium or discount. Issuan ce costs are expensed when incurred.
Fund Financial Statements
The fund financial statements do not present long-term de bt but long-term debt is shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
M. Property Taxes
Property taxes are payable by property owners in two installments: November 1 and February 1 of each year.
Property taxes become delinquent on December 10 and April 10, for the first and second installments, respectively.
The lien date is January 1. The County of San Diego, California (County) bills and collects property taxes and remits them to the City according to a payment schedule established by the County.
Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the taxes are received within 60 days after the end of the fiscal year. Pr operty taxes received after this date are not considered available as a resource that can be used to finance the current year operations of the City and, therefore, are not recorded as revenue until collected. No allowance for doubtful accounts was considered necessary because the City participates in the California Teeter Plan where by local agencies receive 100% of their current secured and unsecured tax levy in exchange for allowing the sponsoring co unty to retain all interest and penalties on any late property tax payments.
N. Unearned Revenue
Unearned revenue recorded in the Government-Wide Statement of Net Position for governmental activities and the governmental fund financial statements consists of fe deral and state capital grants, representing voluntary non- exchange transactions, for which adva nce payments have been received fro m the provider for which eligibility requirements, other than timing requirements, have not been satisfied.
Unearned revenue recorded in the Government-Wide Statement of Net Position for business-type activities and the proprietary fund financial statements generally consist of program fees collected from customers prior to the statement of net position date for recreation programs that begin in the next fiscal year or donations for capital or work projects, for which the related expenses have not yet been incurred.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
54 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
O. Pensions
For purposes of measuring the net pension liability, de ferred outflows of resources and deferred inflows of resources related to pensions, and pens ion expense, information about the fi duciary net position of the pension plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benef it payments (including refunds of employee contributions) are recognized when due and payable in accordance with bene fit terms. Investments are reported at fair value. The following timeframes are used for pension reporting:
CalPERS:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Gains and losses related to changes in total pension lia bility and fiduciary net positi on are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amorti zation period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over five years. All other amounts are amortized straight-line over the average expect ed remaining service lives of all members that are provided with benefits (active, inac tive, and retired) as of the beginning of the measurement period.
P. Other Postemployment Benefits
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plan and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by the plan (Note 12).
The following timeframes are used for OPEB reporting:
Valuation Date June 30, 2022
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
Q. Net Position
In government-wide and proprietary fund financial statements, net position is categorized as follows:
Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, plus deferre d outflows of resources attributable to their acquisition, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and deferred inflows of resources attributable to their acquisition.
Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
R. Fund Balances
In governmental fund financial statements, fund balances are categorized as follows:
Nonspendable – Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, or items that are legally or contractually re quired to be maintained int act, such as principal of an endowment or revolving loan funds.
Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restricti ons by creditors, such as through debt covenants, grantors, contributors, la ws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.
Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body and that remain binding unless removed in the same manner. Adoption of a resolution by the City Council is required to commit resources or rescind the commitment. The action that constitutes the most binding constraint (i.e. ordinance) of the City’s highest level of decision-making authority, the City Council, commits fund balance for specific pur poses. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally.
Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. Th e City Council has authorized the City Manager to determine and define the amount of assigned fund balances.
Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that re ports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount because all of the fund balance is assumed to be either nonspendable, restricted, committed, or assigned for the purposes of the respective funds. However, in other governmental funds, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
S. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements
When an expense is incurred for purposes for which both restricted and un restricted net position are available, the City’s policy is to apply restricted net position first.
Governmental Fund Financial Statements
When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in accordance with the City’s budge t and the purposes for which the committed, assigned, and unassigned balances have been reported.
T. Use of Estimates
The preparation of basic financial statements in conformity with US GAAP requi res management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from these estimates and assumptions.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
56 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
U. Accounting Changes
New Governmental Accounting Standards Implemented for the Year Ended June 30, 2022
GASB Statement No. 87
In June 2017, GASB issued Statement No. 87, Leases. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain leased assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and co nsistency of information about governments’ leasing activities. Application of this statement had a significant effect on the City’s financial reporting. See Note 3.
GASB Statement No. 89
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement establishes accounting requirement s for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of para graphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Stat ement requires that interest cost incu rred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a r esult, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. Application of this statement did not have a significant effect on the City’s financial reporting.
GASB Statement No. 92
In January 2020, GASB issued Statement No. 92, Omnibus 2020. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve c onsistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. Application of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.
GASB Statement No. 93
In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changi ng fallback provisions related to the reference rate. The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Application of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
57 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
U. Accounting Changes (Continued)
New Governmental Accounting Standards Implemented for the Year Ended June 30, 2022 (Continued)
GASB Statement No. 97
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Def erred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically w ould perform; (2) mitigate co sts associated with the reporting of certain defined contribu tion pension plans, defined contri bution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the de finition of a pension plan and for benefits provided through those plans. Application of this statement did not have a significant effect on the City’s financial reporting.
Upcoming Governmental Accounting Standards Implementation
GASB Statement No. 91
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obl igations by issuers and eliminate diversity in practice associated with (1) commitments extende d by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt ob ligation is not a liability of the issuer; establishing standards for accounting and financia l reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures.
Application of this statement is effective for the City’s fiscal year ending June 30, 2023.
GASB Statement No. 94
In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and pub lic-public partnership arrangements (PPPs ). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by c onveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.
GASB Statement No. 96
In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and fina ncial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization crite ria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requi res note disclosures regarding a SBITA. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
58 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
U. Accounting Changes (Continued)
Upcoming Governmental Accounting Standards Implementation (Continued)
GASB Statement No. 99
In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for fi nancial guarantees. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.
GASB Statement No. 100
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62 . The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understanda ble, reliable, relevant, consistent, and comparable information for making d ecisions or assessing accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2024.
GASB Statement No. 101
In June 2022, GASB issued Statement No. 101, Compensated Absences . The objective of this Statement is to better meet the information needs of financial stat ement users by updating the r ecognition and measurement guidance for compensated absences. Th at objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain pr eviously required disclosures. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.
Note 2 – Cash and Investments
The following is a summary of pooled cash and investment s, including cash and investments with fiscal agents at June 30, 2022.
Fiduciary Funds
Governmental Statement of
Activities Net Position Total
Cash and investments 119,229,655 $ 6,710,681 $ 125,940,336 $ Restricted cash and investments:
Section 115 pension trust 6,393,549 - 6,393,549 Section 115 OPEB trust 3,133,184 - 3,133,184 Held by fiscal agent 10,333 1,464 11,797 Total restricted cash and investments 9,537,066 1,464 9,538,530 Total cash and inv estments 128,766,721$ 6,712,145 $ 135,478,866 $
Cash, cash equivalents and investments consisted of the following at June 30, 2022:
Petty cash 4,310$
Deposits with financial institutions 26,904,702
Investments 99,031,324
Section 115 pension trust 6,393,549
Section 115 OPEB trust 3,133,184
Investments held by bond trustee 11,797
Total cash and inv estments 135,478,866$
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59 Note 2 – Cash and Investments (Continued)
A. Deposits
The carrying amount of the City’s cash deposits were $26,904,702 at June 30, 2022. Bank balances before reconciling items were $28,869,633 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collat eral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging fi rst trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. In terest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances.
Interest income from cash and investments with fiscal agents is credited directly to the related fund.
B. Investments
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment polic y, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This ta ble does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agre ements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
Ma x i m u m Ma x i m u m
Authorized M aximum Percentage of Investment in
Investment Type Maturity Portfolio* One Issuer
Bankers' Acceptances 180 days 40% 5%
Negotiable Certificates of Deposits 5 years 30% 5%
Commercial Paper 270 days 25% 5%
State and Local Agency Bond Issues 5 years None 10%
US Treasury Obligations 5 years None None
US Agency Securities 5 years None None
Repurchase Agreement 90 days None 10%
Reverse-Purchase Agreements 92 days 20% 10%
Medium-Term Corporate Notes 5 years 30% 10%
Federally Insured Time Deposits 5 years None 10%
Money Market Mutual Funds N/A 20% 10%
Local Agency Investment Fund (LAIF) N/A None $50 M illion** Investment Trust of California (CalTrust) N/A None 10%
San Diego County Pool Money Fund None None None
Asset-Backed Securities 5 years 20% 20%
Supranationals 5 years 30% 10%
* Excluding amounts held by bond trustee that are not subject to California Government Code restriction. ** Maximum is $50 million per account.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
60 Note 2 – Cash and Investments (Continued)
B. Investments (Continued)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreement rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Ma x i m um Ma x i m um
Authorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio One Issuer
US Treasury Obligations None None None
US Agency Securities None None None
Banker’s Acceptances 180 days None None
Commercial Paper 270 days None None
Mone y Ma rke t Mutua l Funds N/ A None None
Investment Contracts 30 years None None
Certificates of Deposit None None None
Repurchase Agreements None None None
Mortgage Pass-Through Securities None None None
State Bonds or Notes None None None
Municipal Bonds or Notes None None None
San Diego County Pool Money Fund None None None
Asset-Backed Securities 5 years 20% 20%
C. Fair Value Measurement
As of June 30, 2022, the City’s investments had the following recurring fair value measurements:
Percent of
Investment Type Level 2 Uncategorized Total Total
LAIF - $ 27,717,499$ 27,717,499 $ 25.53% Money market funds - 422,084 422,084 0.39% San Diego County Investment Pool - 35,690,692 35,690,692 32.87% Supranational 1,521,635 - 1,521,635 1.40% Asset-Backed Securities 2,240,299 - 2,240,299 2.06% US Corporate 7,992,698 - 7,992,698 7.36% US Treasury Obligations 15,416,450 - 15,416,450 14.20% US Agency Securities 8,029,967 - 8,029,967 7.40% Subtotal 35,201,049 63,830,275 99,031,324 91.21% Held by fiscal agent:
Section 115 pension trust - 6,393,549 6,393,549 5.89% Section 115 OPEB trust - 3,133,184 3,133,184 2.89% Money market funds - 11,797 11,797 0.01% Subtotal - 9,538,530 9,538,530 8.79% Total Investments 35,201,049$ 73,368,805 $ 108,569,854 $ 100.00%
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61 Note 2 – Cash and Investments (Continued)
C. Fair Value Measurement (Continued)
Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities.
Debt and equity securities classified in Level 2 are valued using the following approaches:
• U.S. Treasury Obligations, U.S. Corporate, U.S. Agency Securities, Supranationals, and Commercial Paper:
quoted prices for identical securities in markets that are not active; • Medium term notes: quoted prices for similar securities in active markets
D. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity, the greater the sensitivity its fair value is to changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy provides that final maturities of securities cannot exceed five years, except as otherwise stated in the investment policy. Specific maturities of investments depend on liquidity needs.
As of June 30, 2022, the City had the following investments and maturities:
Investment Type Fair Value 1 year or less 1 to 2 years 2-3 years 3-4 years 4-5 years LAIF 27,717,499$ 27,717,499$ -$ -$ -$ -$ Money market funds 422,084 422,084 - - - - San Diego County Investment Pool 35,690,692 35,690,692 - - - - Supranational 1,521,635 - - 1,521,635 - - Asset-backed securities 2,240,299 - 189,433 1,395,205 564,911 90,750 US Corporate 7,992,698 1,218,644 2,241,390 1,686,520 1,293,003 1,553,141 US Treasury Obligations 15,416,450 - 2,820,559 2,102,437 6,489,519 4,003,935 US Agency Securities 8,029,967 1,833,981 4,460,033 1,590,968 144,985 - Subtotal 99,031,324 66,882,900 9,711,415 8,296,765 8,492,418 5,647,826 Held by fiscal agent:
Section 115 pension trust 6,393,549 6,393,549 - - - - Section 115 OPEB trust 3,133,184 3,133,184 - - - - Money market funds 11,797 11,797 - - - - Subtotal 9,538,530 9,538,530 - - - - Total Investments 108,569,854$ 76,421,430$ 9,711,415$ 8,296,765$ 8,492,418$ 5,647,826$ Investment Maturities
The weighted average maturity of the portfolio was 1.80 years.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
62 Note 2 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fu lfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to recei ve City money, a bank, savings associa tion, federal association, or federally insured industrial loan company shall have received an ove rall rating of not less than "satisfactory" in its most recent evaluation by the appropriate fede ral financial supervisory agency of its record of meeting the credit needs of California's communities, including low-and-moderate-income neighborhoods.
The City’s investments are rated by the nationally recognized statistical rating organizations as follows:
Stand ar d
Fair Value Moody's & Poor's
LAIF 27,717,499$ Not Rated Not Rated
Money Market Funds 422,084 Aaa AAA
San Diego County Investment Pool 35,690,692 Not Rated Not Rated Supranational 1,521,635 Aaa AAA
Asset-backed Securities 2,240,299 Various Various US Corporate 7,992,698 Various Various
US Treasury Obligations 15,416,450 n/a n/a
US Agency Securities 8,029,967 Aaa AA+
Investment in Section 115 pension trust 6,393,549 Not Rated Not Rated Investment in Section 115 OPEB trust 3,133,184 Not Rated Not Rated Investments held by bond trustee 11,797 Not Rated Not Rated 108,569,854$
Investment Type
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be able to recover the value of its investments or collateral secur ities that are in the possession of an outside party. All securities, with the exception of LAIF and other pooled investments, are held by a third-party custodian (BNY Western Trust). BNY is a registered member of the Federal Reserve Bank.
Concentration of Credit Risk
The City’s investment policy contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5% or more of total City’s investments are as follows:
Fair Value Percentage
Local Agency Investment Fund (LAIF) 27,717,499$ 25.53% US Agency Securities 8,029,967 7.40%
San Diego County Investment Pool 35,690,692 32.87% US Treasury Obligations 15,416,450 14.20%
PARS Pension Trust Investment in Section 115 pension trust 6,393,549 5.89% US Corporate 7,992,698 7.36%Corporate Medium Term Notes Issuer Investment Type
US Treasury Obligations
Federal Agency Securities
California Pooled Investment Fund
San Diego County Pooled Investment Fund
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
63 Note 2 – Cash and Investments (Continued)
E. Investments in Local Agency Investment Fund
The City is a participant in LAIF which is regulated by California Government C ode Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2022 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:
Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) de pend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2022, the City had $27,717,499 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market qu otations are readily available and based on amortized cost or best estimate for those secur ities where market value is not readil y available. The City valued its investments in LAIF as of June 30, 2022, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determ ined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The fair va lue of the City’s position in the pool is the same as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2022.
F. Investments in San Diego County Investment Pool
The City also participates in the San Diego County Treasurer’s Pooled Money Fund which is administered by the Treasurer-Tax Collector’s Office. At June 30, 2022, the City had $35,690,692 invested in the pool. The fair value of Commission’s investment in the pool is reported at amounts based upon the City’s pro-rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to the amortized cost of that portfolio). Earnings realized on investments based on amortized cost are distributed to Investment Pool participants. Section 27013 of the California Government Code authorizes the Treasurer’s Office to deduct administrative fees related to investments. The net rea lized earnings on investments are apportioned to the Investment Pool participants quarterly, based on the participants’ average daily balances. The County’s annual financial report for the Pool can be obtained from the Treasurer-Tax Collector at 1600 Pacific Highway, Room 162, San Diego, California, 92101 and can also be accessed at http://www.sdtreastax.com.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
64 Note 3 – Leases Receivable and Related Deferred Inflows of Resources
The City leases land to third parties. Leases receivable consist of agreements with third parties for the “right–to–use” the underlying asset at various locations owned by the City . The remaining terms of the agreements range from one to 21 years. The calculated interest rates used match the City’s incremental borrowing rate at July 1, 2021.
For the fiscal year ended June 30, 2022, the City r ecognized $509,912 in lease revenue and $86,593 in interest revenue, and the outstanding receivable amount is $3,559,741.
A summary of changes in leases receivable for the fiscal year ended June 30, 2022 is as follows:
Balance Am ounts Amounts
July 1, 2021 due within due in more
(as restated) Additions Reductions June 30, 2022 one year than one year 4,001,898$ -$ (442,157)$ 3,559,741$ 404,518$ 3,155,223$
As of June 30, 2022, the required payments for these leases, including interest, are:
Y ear Ending Leases
June 30 Receivable Interest Total
2023 404,518 $ 84,323 $ 488,841 $ 2024 420,457 74,108 494,565 2025 395,183 63,629 458,812 2026 381,226 54,154 435,380 2027 387,537 44,406 431,943 2028-2032 1,360,346 101,242 1,461,588 2033-2037 166,803 10,937 177,740 2038-2042 36,475 3,265 39,740 2043-2047 7,196 90 7,286 3,559,741$ 436,154 $ 3,995,895 $
As of June 30, 2022, the amounts reported as deferred infl ows of resources will be rec ognized as lease revenue as follows:
Y ear Ending
June 30 Total
2023 462,488 $
2024 453,004
2025 410,530
2026 380,192
2027 369,073
2028-2032 1,231,965
2033-2037 148,607
2038-2042 30,530
2043-2047 5,597
3,491,986$
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
65 Note 4 – Loans Receivable
A. Government-Wide Financial Statements
At June 30, 2022, the City had the following loans receivable, including principal and accrued interest:
Morgan Tower Housing Associates, LP 14,801,109$
Kimball Tower Housing Associates, LP 19,342,929
Copper Hills Apartments, LP 7,234,762
Plaza City Apartments, LP 3,422,000
Home Improvement Loan Program 31,215
First Time Home Buyers Program 2,935,297
Owner Occupied Loan Program 369,601
Rental Rehabilitation Loan Program 3,332,500
Paradise Creek, LP 5,819,113
Subtotal 57,288,526
Less: allowance for doubtful accounts (12,017,819)
Total 45,270,707$
Morgan Tower Housing Associates, LP
On March 28, 2019, the Community Development Commissi on- Housing Authority of the City of National City sold 152 units (151 affordable units and 1 manager’s unit) of housing for low-income senior households located at 1415 D Avenue in National City to Morgan Tower Hous ing Associates, L.P., for $33,800,000. The CDC-HA sold only the improvements and retained fee-simple owners hip of the land through a 99 year-ground lease. The CDC- HA provided a seller carryback note totaling $15,106,28 4. The note carries a 55-year term with interest compounding annually at 2.91% and has a mandatory annua l payment of $222,000 that increases by 3.50% per year following the base year. An additional annual payment will be made from 50% of residual receipts. At June 30, 2022, the outstanding balance was $14,801,109.
Kimball Tower Housing Associates, LP
On March 28, 2019, the CDC-HA sold 151 units (149 affordable units and 2 manager’s units) of housing for low- income senior households located at 1317 D Avenue, Nationa l City to Kimball Tower Housing Associates, L.P., for $28,800,000. The CDC-HA sold only the improvements and retained fee-simple ownership of the land through a 99 year-ground lease. The CDC-HA provided a seller carryback note totaling $19,374,337. The note carries a 55- year term with interest compounding annually at 2.91% and has a mandatory annual payment of $253,000 that increases by 3.50% per year following the base year. An additional annual payment will be made from 50% of residual receipts. At June 30, 2022, the outstanding balance was $19,342,929.
Copper Hills Apartment, LP
In 1999, the Community Development Commission of the C ity of National City (CDC) entered into several loan agreements with Copper Hills Apartm ents, LP. CDC Residual Receipts Note dated February 19, 1999 disclosed a loan of $2,400,000 with 3% interest per annum fo r 55 years, funded by the HOME Program and Low-and- Moderate-Income Housing Funds. A second and junior to the CDC Residual Receipts Note was made on June 3, 1999 for $4,400,000, referred to as CDC Rehabilitati on Note with 3% interest per annum for 55 years and funded by the Low-and-Moderate-Inco me Housing Fund (currently Housing Fund). These loans were made to acquire, develop, rehabilitate and operate the multi-family apartments located at “Q” Avenue in National City, CA.
This project will contain 134 apartment dwelling units follo wing rehabilitation and renova tion. At June 30, 2022, the outstanding balance was $7,234,762 with an associated contractual allowance of $2,367,995.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
66 Note 4 – Loans Receivable (Continued)
A. Government-Wide Financial Statements (Continued)
Plaza City Apartments, LP
The CDC of the City of National Ci ty entered into a Loan Agreement with Plaza City Apartments, LP on November 1, 2005 in the amount of $2,700,000 with 3% interest per annum for 55 years. It was amended per Resolution No. 2006-202 dated Septembe r 19, 2006 which increased the loan amount by $722,000 for a total of $3,422,000. This loan will be used by the borrower to pay the balance of the purchase price and additional costs relating to the acquisition, demoliti on and development of certain real property located at 1535 Plaza Blvd., National City, CA. At June 30, 2022, the outstanding ba lance of loans made was $3,422,000 with an associated contractual allowance of $3,422,000.
Home Improvement Loan program
The City of National City Home Improvement Loan Program was administered by the Housing Authority and funded with Community Development Bl ock Grant funds. The loan program provided loans to owners of single- family residences that wish ed to rehabilitate their property, providing for safe, decent, and sanitary housing throughout National City. The loan program provided favor able terms of repayment and stopped issuing loans in 2002. At June 30, 2022, the outstanding balance of the loans made was $31,215.
First Time Home Buyers program
The City of National City First-Time Homebuyer Assistance Program is currently funded through HUD HOME Investment Partnerships Program and previously was also funded with the State of California Low- and Moderate- Income Housing Set-Aside funds. The Program is curre ntly administered by Community Housing Works, a 501(c)3 affordable housing agency that offers equity share deferred home gap fi nancing loans to qualified borrowers. At June 30, 2022, the outstanding balance of the loans made was $2,935,297 with an allowance for doubtful accounts of $2,935,297.
Owner Occupied Loan program
The City of National City Owner Occupied Loan Program is administered by the Housing Authority. The program provides loans to owners of single-family residences that wish to rehabilitate their property, providing for safe, decent, and sanitary housing throughout National City. Principal payment on th e loans provided is deferred for 30 years. At June 30, 2022, the outstanding balance of th e loans made was $369,601 with an allowance for doubtful accounts of $118,389.
Rental Rehabilitation program
The City of National City Rental Rehabilitation Loan Program is administered by the Housing Authority and funded through HUD HOME Investment Partnerships Program and the Low- and Moderate-Income Housing Asset Fund. The program offers gap financin g to developers for the rehabilitation of multi-family complexes and also provides for long-term rental assistance to deed-restricted units. At June 30, 2022, the outstanding balance of loans made was $3,332,500 with an allowance for doubtful accounts of $3,174,138.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
67 Note 4 – Loans Receivable (Continued)
A. Government-Wide Financial Statements (Continued)
Paradise Creek, LP
On June 21, 2011, the Community Development Commission of the City of National City (“Commission”), and Paradise Creek Housing Partners, L.P. (the “Developer”) entered into an agreement (Disposition and Development Agreement) for the development of 2 01-unit affordable housing as Phase I and II of the Transit-Oriented Infill Affordable Housing and Paradise Creek Enhancement Project (the “Project”). The Commission, in order to make the Project financially feasible, agreed to make a loan to Developer for the amount of $6,000,000 for Phase I of the Project. During 2016, the loan receivable was transferred from the Successor Agency to the City and was recorded as a special item. As of June 30, 2022, the note recei vable amount is $5,819,113. The Developer will repay the loan with ground lease income and residual receipts to the Community Development Commission-Housing Authority of the City of National City (“CDC-HA”).
B. Fiduciary Fund Financial Statements
At June 30, 2022, the Agency had the following loans receivable, including principal and accrued interest:
National City Mile of Cars 326,402$
First Time Home Buyers Program 2,500,000
Subtotal 2,826,402
Less: allowance for doubtful accounts (2,500,000)
Total 326,402$
National City Mile of Cars
In July 20, 2010, the Community Development Commissi on of the City of National City (“Commission”), and Mile of Cars Association (“Participant”) entered into an agreement (Freeway Sign Rehabilitation Loan Agreement) for the rehabilitation of existing equipment and improveme nts constituting the signage. The Commission agreed to loan to the Participant the amount of $675,000 for said improvements. As of June 30, 2022, the note receivable amount was $326,402. The Participant agreed to execute a promissory note to re pay the Commission the full amount of the rehabilitation loan plus interest.
First Time Home Buyers program
The Commission’s First-Time Homebuyer Assistance Program was funded through the HUD HOME Investment Partnerships Program and State of California Low- a nd Moderate-Income Housing Se t-Aside funds. The Program is currently administered by Community Housing Works, a 501(c)3 affordable housing agency that offers equity share deferred home gap financing loans to qualified borro wers. At June 30, 2022, the outstanding balance of the loans made was $2,500,000 with an allowance for doubtful accounts applied for the full balance.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
68 Note 5 – Interfund Balances and Transactions
A. Due to/Due from other funds
At June 30, 2022, interfund receivables and payables were as follows:
Receivable Fund Payable Fund Amount Purpose
General Fund Other Special Revenue Fund 5,665,091$ Overdrawn Cash General Fund Non-Major Governmental Funds 202,394 Overdrawn Cash Total 5,867,485$
Current interfund balances arise in the normal course of op erations to cover cash shortages and are expected to be repaid shortly after the end of the fiscal year.
B. Transfers In/Out
For the year ended June 30, 2022, interfund transfers were as follows:
Transfers In Transfers Out Amount Purpose
Other Special Revenue Fund General Fund 631,317$ Operating subsidy Library Fund General Fund 903,737 Operating subsidy Parks Maintenance Fund General Fund 430,963 Operating subsidy CDBG Fund General Fund 12,143 Operating subsidy Vehicle Replacement Reserve General Fund 910,829 Vehicle purchases Subtotal 2,888,989
General Fund Other Special Revenue Fund 24,956 Overhead allocation Nutrition Fund Housing Authority Special Revenue Fund 526,641 Operating subsidy Total 3,440,586$
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69 Note 6 – Capital Assets
A. Governmental Activities
A summary of changes in capital assets for governmental activities for the year ended June 30, 2022 is as follows:
Prior Period
Balance Adjustments Transfers/ Balance
July 1, 2021 (Note 15) Additions Deletions Reclassifications June 30, 2022 Capital assets, not being depreciated:
Land 25,147,009 $ 450,000$ -$ -$ -$ 25,597,009$ Right of way 4,245,088 - - - - 4,245,088 Construction in progress 23,730,673 - 6,422,794 - (1,347,402) 28,806,065 Total capital assets, not b eing depreciated 53,122,770 450,000 6,422,794 - (1,347,402) 58,648,162 Capital assets, being depreciated:
Buildings and improvements 62,469,402 800,000 - - - 63,269,402 Machinery and equipment 23,479,189 - 938,061 - - 24,417,250 Infrastructure 163,596,968 (2,388,142) - (192,547) 1,347,402 162,363,681 Radio rights 1,270,763 - - - - 1,270,763 Sub tota l 250,816,322 (1,588,142) 938,061 (192,547) 1,347,402 251,321,096 Less accumulated depreciation
Buildings and improvements (36,013,167) (800,000) (2,437,653) - - (39,250,820) Machinery and equipment (16,237,002) - (1,413,843) - - (17,650,845) Infrastructure (78,496,687) - (3,520,186) 192,547 - (81,824,326) Radio rights (317,690) - (63,538) - - (381,228) Sub tota l (131,064,546) (800,000) (7,435,220) 192,547 - (139,107,219) Total capital assets, being depreciated 119,751,776 (2,388,142) (6,497,159) - 1,347,402 112,213,877 Total capital assets, net 172,874,546$ (1,938,142)$ (74,365)$ -$ -$ 170,862,039$
Depreciation expense was charged to functions/programs as follows:
General government 1,080,594$
Public safety 1,053,827
Transportation 3,648,698
Community development 16,379
Culture and leisure 584,748
Internal service funds 1,050,974
Total depreciation expense 7,435,220$
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
70 Note 6 – Capital Assets (Continued)
B. Fiduciary Funds Financial Statements
A summary of changes in capital assets for fiduciary funds for the year ended June 30, 2022 is as follows:
Prior Period
Balance Adjustment Balance
July 1, 2021 (Note 15) Additions Deletions June 30, 2022 Capital asse ts, not be ing depreciated:
Land 450,000$ (450,000)$ -$ -$ -$ Total capital assets, not being depreciated 450,000 (450,000) - - - Capital asse ts, being depreciate d:
Buildings 800,000 (800,000) - - - Subtotal 800,000 (800,000) - - - Less accumulate d depreciation
Buildings (800,000) 800,000 - - - Subtotal (800,000) 800,000 - - - Total capital assets, being depreciated - - - - - Total capital assets, net 450,000$ (450,000)$ -$ -$ -$
Depreciation expense for fiduciary fund financial statements for the year ended June 30, 2022 was $0.
Note 7 – Long-Term Debt
A. Governmental Activities
A summary of changes in governmental activities long-term debt for the year ended June 30, 2022 is as follows:
Balance Debt Debt Balance Due within Due in More
June 30, 2021 Issued Retired June 30, 2022 One Year Than One Yea r Long-term de bt:
Public offerings:
2012 General Obligation Bonds 2,790,000$ - $ (300,000)$ 2,490,000 $ 315,000 $ 2,175,000 $ Bond premium 11,233 - (1,605) 9,628 - 9,628 Section 108 Bonds 1,690,000 - (520,000) 1,170,000 565,000 605,000 2017 Clean Energy Bonds 1,800,000 - - 1,800,000 - 1,800,000 2017 Lease Revenue Bonds 3,110,214 - (176,433) 2,933,781 190,720 2,743,061 2021 Pension Obligation Bonds - 83,895,000 - 83,895,000 2,565,000 81,330,000 Bond discount - (142,838) - (142,838) - (142,838) Priv ate placements:
Notes payable 679,023 - (128,435) 550,588 132,019 418,569 Lease liabilities 627,547 - (147,908) 479,639 153,267 326,372 Total long-term debt 10,708,017$ 83,752,162$ (1,274,381)$ 93,185,798$ 3,921,006$ 89,264,792$ Classification
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
71 Note 7 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2012 General Obligation Refunding Bonds
The City issued $4,885,000 of general obligation bonds, 2012 General Obligation Refunding Bonds, on August 1, 2012 to refund the 2002 General Obligati on Bonds. No 2002 General Obligation Bonds remain outstanding. The bonds mature annually through August 1, 2028 in the amounts ranging from $235,000 to $395,000 beginning August 1, 2003. The interest of th e bonds is payable semi-annually on each February 1 and August 1, commencing February 1, 2004. The interest rate of the bonds ranges from 2.00% to 3.500%. The bonds are payable solely from and secured by ad valorem taxes of all property subject to taxation by the City. The bonds are subject to optional and mandatory early redemption provisions. As of June 30, 2022, the outstanding balance is $2,490,000.
The annual debt service requirements for the 2012 General Obligation Refunding Bonds outstanding at June 30, 2022 are as follows:
Year Ending
June 30, Principal Interest Total
2023 315,000$ 76,150 $ 391,150 $
2024 330,000 66,475 396,475
2025 340,000 56,425 396,425
2026 355,000 45,556 400,556
2027 370,000 33,544 403,544
2028-2029 780,000 27,476 807,476 Total 2,490,000$ 305,626 $ 2,795,626 $
Section 108 Bonds
The City issued $6,900,000 of HUD 108 Bonds, Series A on August 7, 2003 to provide funds for the construction of a fire station. The bonds mature annually throug h 2024 in the amount ranging from $170,000 to $635,000 beginning in 2005. The interest on the bonds is paya ble semi-annually on each Fe bruary 1 and August 1, commencing February 1, 2004. As of June 30, 2022, the outstanding balance is $1,170,000.
The annual debt service requirements for the Section 108 Bonds outstanding at June 30, 2022 are as follows:
Year Ending
June 30, Principal Interest Total
2023 565,000$ 23,861$ 588,861$
2024 605,000 8,470 613,470
Total 1,170,000$ 32,331$ 1,202,331$
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
72 Note 7 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2017 Clean Energy Bonds and 2017 Lease Revenue Bonds
In July 2017, the National City Joint Powers Financing Authority (“NCJPFA”), pursu ant to a facilities lease and facilities sublease with the City of National City, issued $1,800,000 of taxable clean renewable energy bonds under Section 54C(a) of the Internal Revenue Code and $3,723,602 of tax-exempt bonds to finance the cost of an energy efficiency and renewable energy program under an Ener gy Services Agreement with Ameresco, Inc. The bonds were purchased by Banc of America Leasing & Capital, LLC . Principal and interest payments on the bonds are the responsibility of the City and are payable semi-annually on each December 1 and June 1, commencing December 1, 2017.
The annual debt service requirements for the 2017 taxable Clean Energy Bonds outstanding at June 30, 2022 are as follows:
Year Ending
June 30, Principal Interest Total
2023 - $ 86,940$ 86,940 $
2024 84,635 85,923 170,558
2025 90,313 81,767 172,080
2026 95,961 77,334 173,295
2027 102,409 72,611 175,020
2028-2032 614,178 281,221 895,399
2033-2037 812,504 112,162 924,666
Total 1,800,000$ 797,958 $ 2,597,958 $
The annual debt service requirements for the 2017 Lease Revenue Bonds outstanding at June 30, 2022 are as follows:
Year Ending
June 30, Principal Interest Total
2023 190,720$ 79,954 $ 270,674 $
2024 120,936 75,151 196,087
2025 130,427 71,735 202,162
2026 140,375 68,055 208,430
2027 150,797 64,095 214,892
2028-2032 928,329 250,354 1,178,683 2033-2037 1,272,197 101,219 1,373,416 Total 2,933,781$ 710,563 $ 3,644,344 $
2021 Pension Obligation Bonds
On November 16, 2021, the City issued the 2021 Taxa ble Pension Obligation Bonds in the amount of $83,895,000 with an original issue discount of $142,838. The purpo se of the bonds was to refinance a portion of the City’s unfunded actuarial accrued liability with respect to its pa yment obligations to CalPERS. The bonds accrue interest rates between 0.384% and 3.423%. Interest on the bonds is payable sem iannually on each May 1 and November 1, commencing November 1, 2022. Principal is payable in annual installments ranging from $2,565,000 to $6,220,000, commencing November 1, 2022 through Nove mber 1, 2042. The balance at June 30, 2022, was $83,895,000.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
73 Note 7 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2021 Pension Obligation Bonds (Continued)
The annual debt service requirements for the 2021 Pension Obligation Bonds outstanding at June 30, 2022 are as follows:
Year Ending
June 30, Principal Interest Total
2023 2,565,000$ 3,164,428 $ 5,729,428 $
2024 3,655,000 2,151,469 5,806,469
2025 3,680,000 2,120,767 5,800,767
2026 3,675,000 2,075,778 5,750,778
2027 3,680,000 2,018,296 5,698,296
2028-2032 18,755,000 8,931,693 27,686,693
2033-2037 19,870,000 6,331,574 26,201,574
2038-2042 21,795,000 3,003,597 24,798,597
2043 6,220,000 106,455 6,326,455
Total 83,895,000$ 29,904,057 $ 113,799,057 $
Notes Payable
San Diego County Regional Communication System
In 2017, the County of San Diego and certain local governme nts, including the City, entered into an agreement for the implementation, governance, and cost for the Next Generation Regional Communication System (“RCS”). The NGRCS replaces, modernizes, and updates the old regiona l communication system, and provides effective and reliable voice radio communications for routine intra- and inter-agency operations as well as inter-agency communications throughout the region during mutual aid and disaster operati ons. The RCS includes the following subsystems: a trunked voice system, mi crowave backhaul network, and a conventional voice system. The City entered into a financing agreement with the County of San Diego to pay for a share of backbone infrastructure cost of the new system. The amount financed for this project was $1,270,762 at an annual interest rate of 2.79% for a total cost of $1,473,799. Beginning June 1, 2017, and each year thereafter for ten years, the City will make an annual payment of $147,380 to the County.
The annual debt service requirements for the San Diego County RCS Notes Payable outstanding at June 30, 2022 are as follows:
Ye ar Ending
June 30, Principal Interest Total
2023 132,019$ 15,361$ 147,380$
2024 135,702 11,678 147,380
2025 139,488 7,892 147,380
2026 143,379 4,001 147,380
Total 550,588$ 38,932$ 589,520$
Lease Liabilities
Balance Deb t Deb t Balance Due within Due in More
July 1, 2021 Issued Retired June 30, 2022 One Year Than One Year Honeywell Lease 622,162$ -$ (144,258)$ 477,904$ 151,532$ 326,372$ Fleet Vehicle Lease - general 5,385 - (3,650) 1,735 1,735 - Total 627,547$ -$ (147,908)$ 479,639$ 153,267$ 326,372$ Classification
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
74 Note 7 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Lease Liabilities (Continued)
Honeywell Lease
A fifteen-year contract was entered into on March 16, 2010 for various energy efficiency improvements, such as the installation of a new cooling tower with variable speed fans (Civic Cent er), boiler replacement (Civic Center and Police Station), VFD (Police Station), and rooftop package unit replacement (Public Works, Police Station and MLK Community Center). Quarterly paym ents in arrears of principal and interest are $43,101. The final payment will be made in 2025. The balance at June 30, 2022 on this contract was $477,904.
The future minimum lease obligation and the net pr esent value of these minimum lease payments as of June 30, 2022, are as follows:
Year Ending
June 30, Principal Interest Total
2023 151,532$ 20,873$ 172,405$
2024 159,172 13,232 172,404
2025 167,200 5,205 172,405
Total 477,904$ 39,310$ 517,214$
Enterprise Car Lease
A ten-year contract was entered into during 2015 with Enterprise Fleet Management, Inc. to lease approximately 74 vehicles for City-use with each vehicle having a five-y ear payment plan. The balance at June 30, 2022 was $1,735.
The future minimum lease obligation and the net pr esent value of these minimum lease payments as of June 30, 2022, are as follows:
Year Ending
June 30, Principal Interest Total
2023 1,735$ 32$ 1,767
Total 1,735$ 32$ 1,767$
B. Fiduciary Funds
A summary of changes in fiduciary funds long-term debt for the year ended June 30, 2022 is as follows:
Balance Debt Debt Balance Due within Due in More
July 1, 2021 Issued Retired June 30, 2022 One Year Than One Yea r 2017A Tax Allocation
Refunding Bonds 36,998,000 $ - $ (2,923,000)$ 34,075,000 $ 2,996,000 $ 31,079,000 $ 2017B Tax Allocation
Refunding Bonds 2,069,000 - (208,000) 1,861,000 212,000 1,649,000 Total 39,067,000$ -$ (3,131,000)$ 35,936,000$ 3,208,000$ 32,728,000$ Classification
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75 Note 7 – Long-Term Debt (Continued)
B. Fiduciary Funds (Continued)
2017 Series A and B Tax Allocation Refunding Bonds
In September 2017, the Successor Agen cy to the Community Developmen t Commission as the National City Redevelopment Agency issued $45,874,000 in Tax Allo cation Refunding Bonds, Series 2017A, and $2,669,000 in Tax Allocation Refunding Bonds, Series 2017B, to red eem the 2005B and 2011 Tax Allocation Bonds and the 1999 Tax Allocation Housing Bonds, respectively. The 201 7 Series A bonds mature on August 1, 2032, and bear an interest rate of 2.49% per annum. The 2017 Series B bonds mature on August 1, 2029, and bear an interest rate of 2.36% per annum. Principal is paya ble annually on August 1 for both series of bonds. Interest is payable semi- annually for both series of bonds on February 1 and August 1. The aggregate debt service payments of the new debt are $9,877,886 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and the new debt service payments) of approximately $9,497,037.
The annual debt service requirements for the 2017 Series A Tax Allocation Bonds outstanding at June 30, 2022 are as follows:
Year Ending
June 30, Principal Interest Total
2023 2,996,000$ 811,242 $ 3,807,242 $
2024 3,065,000 735,783 3,800,783
2025 3,139,000 658,543 3,797,543
2026 3,216,000 579,423 3,795,423
2027 2,949,000 502,669 3,451,669
2028-2032 15,469,000 1,387,092 16,856,092
2033 3,241,000 40,389 3,281,389
Total 34,075,000$ 4,715,141 $ 38,790,141 $
The annual debt service requirements for the 2017 Series B Tax Allocation Bonds outstanding at June 30, 2022 are as follows:
Year Ending
June 30, Principal Interest Total
2023 212,000$ 41,418 $ 253,418 $
2024 221,000 36,308 257,308
2025 224,000 31,057 255,057
2026 232,000 25,677 257,677
2027 234,000 20,178 254,178
2028-2030 738,000 26,410 764,410
Total 1,861,000$ 181,048 $ 2,042,048 $
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
76 Note 7 – Long-Term Debt (Continued)
B. Fiduciary Funds (Continued)
Pledged Revenues
The Successor Agency has pledged tax revenues to the repayment of the RDA’s debts transferred to it on February 1, 2012 through the final maturity of the Bonds, or early retirement of the Bonds, whichever comes first.
Tax revenues consist of property tax revenues allocated to the Redevelopm ent Property Tax Trust Fund (RPTTF) for the Successor Agency that is main tained by the County of San Diego A uditor and Controller. The amounts so allocated are those that would have been allocated to the RDA had the R DA not been dissolved. The Auditor and Controller (A&C) then distributes RPTTF revenues to the Successor Agen cy based on Recognized Obligation Payment Schedules (ROPS) as approved by the California State Department of Finance (DOF) and after deducting amounts for A&C administrative costs and amounts required to be paid under tax-sharing agreements unless the payment of such amounts has been subordinated to paym ent of debt services on the Bonds. Each ROPS covers a one fiscal year period and includes the applicable debt service payments on the Bonds.
In fiscal year 2022, property tax revenue in the am ount of $25,844,720 was deposited to the RPTTF for the Successor Agency. After deductions for County administrative fees and pass-through payments, the RPTTF revenue available for distribution to the Successor Agency was $19,837,688. Th e actual amount of RPTTF revenue authorized by the State Department of Finance to be distributed to the Successor Agency was $3,485,844.
This distribution took into account previously allocated, but unspent RPTTF in previous ROPS periods and did not affect the ability of the Successor Agency to meet its debt service obliga tion. Total debt service for all Tax Allocation Refunding Bonds (TARBs) in fiscal year 2022 was $4,062,237, 20 % of the RPTTF revenue available for distribution to the Successor Agency. Beyond fiscal year 2022 and through final matu rity in fiscal year 2033, these annual payments will gradually decline from $4.1 million in fiscal year 2023 to $3.3 million in fiscal year 2033. The percentage of available RPTTF required for debt service will also gradually drop as total payments decrease and the amount of available RPTTF increases because of expected grow th in assessed values attributable to the former redevelopment area.
Note 8 – Compensated Absences
A summary of changes in compensated absences for the year ended June 30, 2022 is as follows:
Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Compensated Absences 3,847,861$ 1,963,250$ (1,827,398)$ 3,983,713$ 1,827,398$ 2,156,315$ Total 3,847,861$ 1,963,250$ (1,827,398)$ 3,983,713$ 1,827,398$ 2,156,315$ Classification
The City’s liability for vested and unpaid compensated absences (accrued vacation, sick leave, and compensatory time) was $3,983,713 at June 30, 2022. For the governmental activities compensated absences are generally liquidated by the General Fund.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
77 Note 8 – Compensated Absences (Continued)
Compensated absences at June 30, 2022 are obligations of the following funds:
General Fund 3,874,120$
Facilities Maintenance 31,140
Liability Insurance 5,062
Information Systems Maintenance 38,335
Motor Vehicle Services 35,056
Total 3,983,713$
Note 9 – Other Required Fund Disclosures
At June 30, 2022, the following funds had deficit fund equity:
Fund Type Funds Deficit
Special Revenue
Fund CDBG (210,125)$
Internal Service
Fund Facilities M aintenance (231,297)$
Fiduciary Fund Successor Agency To the Community Development Commission of National City Private-Purpose Trust Fund (26,678,866)$
CDBG Special Revenue Fund – The CDBG Special Revenue Fund had a deficit of $(210,125) resulting from program expenses for the year ended June 30, 2021 exceeding revenues. The defi cit has decreased in 2022 and will be eliminated via future funding drawdowns from HUD/CDBG programs.
Facilities Maintenance Internal Service Fund – The Facilities Maintenance Internal Service Fund had a deficit of $(231,297) resulting from a loss of $475,961 for the year ended June 30, 2022. The deficit will be eliminated via increased charges for services in future years.
The Successor Agency to the Community Development Co mmission as the National City Redevelopment Agency (the “Successor Agency”) Private-Purpose Trust Fund - The Successor Agency to th e Community Development Commission as the National City Redevelopment Agency Private-Purpose Trust Fund had an accumulated deficit of $(26,678,866). The deficit will be eliminated over the next ten years through revenues received from the RPTTF to pay for debt service on the 2017 Series A and B Tax Allocation Refunding Bonds.
Governmental Activities - At June 30, 2022, the City had an unrestrict ed net position deficit of $(41,399,785) on the Statement of Activities. This deficit incorporates th e calculations resulting from the implementation of GASB Statement 68 (Net Pension Liability) in fiscal year 2015 an d the implementation of GASB Statement 75 (Total OPEB Liability) in 2017. The City is addressing the portion of the deficit attributable to the GASB 68 reporting requirements through meeting its annual required pension contributions to CalPERS and has established an IRS Section 115 pension trust. In addition, in November 2021, the City issued pension obligation bonds and delivered the proceeds to CalPERS to pay off approximately $83,260,000 of the City’s anticip ated unfunded liability. The City is addressing the OPEB liability by establishing an IRS Section 115 OPEB trust for approximately half of the liability while continuing to budget and pay for annual OPEB costs out of current resources.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
78 Note 10 – Self-Insurance Accrued Liabilities
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and workers’ compensation claims. A self-insurance (internal service) fund is used to account for the City’s insurance programs. Operating revenues of this fund represent payments from other City funds and are based upon estimated umbrella insurance prem ium expenses, self-insurance losses and other operating expenses.
The San Diego Pooled Insurance Program Authority (SANDPIPA) a joint powers authority (JPA), of which the City was a member, ceased operations on June 30, 2016. On July 1 st, 2016 the City became self-insured for General
Liability claims up to $250,000. This means that the City pays all claims up to $250,000 directly from City funds.
Claims between the self-insured retention (SIR) of $250,0 00 up to $5,000,000 are covered by Public Risk Innovation, Solutions and Management (formerly California State Association of Counties - Excess Insurance Authority). The next layer of coverage is the Excess Layer which provides $20,000,000 and the final layer of coverage is the Optional Layer which provides $25,000,000. The total am ount of coverage for the General Liability Program is $50,000,000. PRISM is located in Folsom, California. All the coverages are administered by PRISM.
The City is completely self-insured for unemployment claims.
The City is self-insured for Workers’ Compensation claims up to $500,000 per occurrence. Claims between the self- insured retention level of $500,000 and $5,000,000 are c overed by PRISM which is reinsured by Great American.
Claims in excess of $5,000,000 up to $50,000,000 are c overed by PRISM which is re insured by ACE American Insurance Company. Any statutory benefit in excess of $50,000,000 is covere d by Liberty Insurance Corporation.
There is no statutory limit for benefits paid on Workers’ Compensation claims.
During the current year, there were no significant reductions in insurance coverage from the prior year. For each of the past three fiscal years, the settlements have not exceeded the City’s insurance coverage.
At June 30, 2022, the City had an accr ued amount of $10,966,000 of worker s’ compensation and general liability claims representing estimates of amounts to be paid for actual and incurred but not reporte d claims based upon past experience, modified for current trends and information. Allocated claim adjustment expenses are included in claim liabilities. While the ultimate amount of losses incurred throug h June 30, 2022 is depende nt on future developments, based upon information from the City Attorney, outside coun sel and others involved with the administration of the programs, City management believes that the aggregate accr ual is adequate to cover su ch losses. For the past three years, no settlements or claims payments have exceeded the amount of the applicable coverage. For the past two fiscal years, the changes in the City’s liability for claims payable are summarized as follows:
The aggregate change in the balance of claims payable as recorded in the Governmental Activities were as follows:
2022 2021 2020
Claims liabilities - beginning balance 11,948,000$ 11,356,000$ 10,568,000$ Incurred claims, representing the total of a provision
for events of the current fiscal year and any change
in the provision for events of prior fiscal years 57,029 2,207,426 4,567,696 Payments on claims attributable to events of both
the current fiscal year and prior fiscal years (1,039,029) (1,615,426) (3,779,696) Claims liabilities - ending balance 10,966,000$ 11,948,000$ 11,356,000$
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
79 Note 11 – Pension Plans
A. Summary
Net Pension Liability
Aggregate Net Pension Liability is reported in the accompanying Statement of Net Position as follows:
Net Pension
Liability
Miscellaneous Plan 24,045,221$
Safety Plan 53,602,936
Total 77,648,157$
Deferred Outflows of Resources
Deferred Outflows of Resources are reported in the accompanying Statement of Net Position as follows:
Deferred employer
pension contributions Total
made after Changes in pension-related
measurement date experience deferred outflows
M iscellaneous Plan 31,299,368$ 793,641 $ 32,093,009 $ Safety Plan 64,869,673 1,078,100 65,947,773 Total 96,169,041$ 1,871,741 $ 98,040,782 $
Deferred Inflows of Resources
Deferred Inflows of Resources are reported in the accompanying Statement of Net Position as follows:
and actual earnings Differences Total
on pension plan between expected and pension-related
investments actual experience deferred inflows
Miscellaneous Plan 11,466,525$ -$ 11,466,525$ Safety Plan 16,574,828 8,401 16,583,229 Total 28,041,353$ 8,401$ 28,049,754$
Pension Expense
Pension expenses are included in the accompanying Stat ement of Revenues, Expenses, and Changes in Net Position as follows:
Pension
Expense
Miscellaneous Plan 1,352,172$
Safety Plan 4,149,870
Total 5,502,042$
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
80 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans
Plan Description
Substantially all City employees working the equivalent of 1,000 hours or more per fiscal year are eligible to participate in the Safety Plan and Miscellaneous Plan Ag ent multiple-employer defined benefit plans administered by California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employe rs. Benefit Provisions under th e Plans are established by State statutes within the Public Employee’s Retiremen t Law. 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. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.
Benefits Provided
CalPERS provides retirement and disability benefits, annual co st-of-living adjustments, and death benefits to plan members and beneficiaries. A classic CalPERS member or PEPRA Safety member beco mes eligible for Service Retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainme nt of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 or 12 consecutive months' fulltime equivalent monthly pay. Retirement benefits for classic miscellaneous employees are calculated as 2% to 2.7% of the average final 12 months compen sation. Retirement benefits for PEPRA miscellaneous employees are calculated as 2% of the average final 36 months compensation. Retirement benefits for classic safety employees are calculated as 3% of the average final 12 months compensation. Retirement benefits for PEPRA safety employees are calculated as 2%-3% of the average final 36 months compensation.
Participants are eligible for non-industrial disability retiremen t if they become disabled and have at least five years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service.
Industrial disability benefits are not offered to misce llaneous employees. The City provides industrial disability retirement benefit to safety employees. The industrial disab ility retirement benefit is a monthly allowance equal to 50% of final compensation.
An employee's beneficiary may receive the basic death be nefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement d eath benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year , plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthl y full-time rate of compensation during the 12 months preceding death.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
81 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Benefits Provided (Continued)
Upon the death of a retiree, a one-time lump sum paymen t of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.
Benefit terms provide for annual cost-of-living adjustme nts to each employee’s retirem ent allowance. Beginning the second calendar year after the year of retirement, retir ement and survivor allowances will be annually adjusted on a compound basis by two percent.
Employees Covered – At June 30, 2020, the valuation date, the fo llowing employees were covered by the benefit terms for each plan:
Miscellaneous Safety
Active employees 179 116
Transferred and terminated employees 242 81
Retired employees and beneficiaries 313 244
Contributions – Section 20814(c) of the California Public Em ployees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valu ation process. The actuarially determ ined rate is the estimated amount necessary to finance the costs of benefits earned by employ ees during the year (the “normal cost” rate), with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined normal cost rate and the contribution rate of employees. For the measurement period ended June 30, 2021, the average active miscellaneous and safety employee contribution rates were 8% and 9% of annual pay, respectively, a nd the employer’s normal cost contribut ion rates were 11.52% and 21.37% of miscellaneous and safety employee annual payroll, respec tively. The employer pays the annual amount required to address the plan’s unfunded accrued liability.
For the year ended June 30, 2022, the employer contributions, including for the unfunded accrued liability, were:
Aggregate
Miscellaneous Safety Total
Contributions - employer 31,299,368$ 64,869,673 $ 96,169,041 $
Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the pens ion plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 usi ng standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
82 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Net Pension Liability (Continued)
Actuarial Assumptions – The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:
Actuarial Cost Method Entry Ag e Normal
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.500%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return
M ortality Rate Table
Post Retirement Benefit Increase
7.00% net of pension plan investment and administrative expenses; includes Inflation
Derived using CalPERS’ Membership Data for all Funds. The mortality table used was developed based on CalPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.
Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter.
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuations were based on the results of a January 2015 actuarial e xperience study for the period 1997 to 2014. Further details of the Experience Study can be found on the CalPERS website.
Change of Assumption
In accordance with GASB 68, the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate was changed from 7.5% (net of administrative expense in 2014) to 7. 65% as of the June 30, 2015 measurement date to correct the adjustment which previously reduced the discount rate for administrative expenses. The discount rate was also changed from 7.65% as of the June 30, 2015 measurement date to 7.15% as of the June 30, 2016 measurement date. The CalPERS Board has approved reducing the discount rate to 7.00% for the 2021 actuarial valuation date.
Discount Rate – The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a di scount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to a ll plans in the Public Employees’ Retirement Fund (PERF).
The cash flows used in the testing were developed assu ming that both members and employers will make their required contributions on time and as sch eduled in all future years. The st ress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS website under the GASB 68 section. In November 2021, the CalPERS Board approved a 6.8% discount rate to go into effect for actuarial valuations and determination of actuarially determined contributions on July 1, 2021.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
83 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Net Pension Liability (Continued)
The long-term expected rate of return on pension plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determ ining the long-term expected rate of return, staff took into account both short-term and long-term market retu rn expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calcula ted over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nom inal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determin e the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.
The long-term expected rate of return by asset class fo r the measurement period ended June 30, 2021 was as follows:
New Strateg ic Real Return Real Return
Allocation Years 1-101 Years 11+2
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
100%
1An expected inflation of 2.0% used for this period
2An expected inflation of 2.92% used for this period
Asset Class
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
84 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period:
Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2020 (Valuation Date) 141,289,184$ 102,326,786$ 34,932,328$ Changes in the year:
Service cost 2,104,183 - 2,104,183 Interest on the total pension liability 9,982,628 - 9,982,628 Differences between ex pected and actual ex perience 909,313 - 909,313 Benefit payments, including refunds of members contributions (7,266,866) (7,266,866) - Contributions - em ployer - 4,120,557 (4,120,557) Contributions - em ployees - 859,274 (859,274) Net investm ent incom e - 23,035,688 (23,035,688) Adm inistrative ex penses - (102,218) 102,218 Net changes 5,729,258 20,646,435 (14,917,177) Balance at June 30, 2021 (Measurement Date) 147,018,442$ 122,973,221$ 24,045,221$ Miscellaneous Plan
Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2020 (Valuation Date) 220,732,894 $ 145,910,227 $ 67,958,381 $ Changes in the year:
Service cost 4,028,937 - 4,028,937 Interest on the total pension liability 15,639,864 - 15,639,864 C hanges of assum ptions - - - Differences between expected and actual experience 1,427,840 - 1,427,840 Benefit payments, including refunds of members contributions (10,871,690) (10,871,690) - Plan to plan resource m ovem ent - - - Contributions - em ployer - 7,850,354 (7,850,354) Contributions - em ployees - 1,488,276 (1,488,276) Net investm ent incom e - 33,123,497 (33,123,497) Adm inistrative ex penses - (145,755) 145,755 Net changes 10,224,951 31,444,682 (21,219,731) Balance at June 30, 2021 (Measurement Date) 230,957,845 $ 177,354,909 $ 53,602,936 $ Safety P lan
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
85 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Changes in the Net Pension Liability (Continued)
Sensitivity of the Aggregate Net Pension Li ability to Changes in the Discount Rate - The following presents the City’s net pension liability, calculated using the disc ount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15)
42,792,978$ 24,045,221$ 8,503,393$ 84,816,902$ 53,602,936$ 27,997,749$ 127,609,880$ 77,648,157$ 36,501,142$ Aggregate Total Safety P lan
Miscellaneous Plan
Plan's Aggregate Net Pension L iability/(Asset)
Pension Plan Fiduciary Net Position – Detailed information about each pens ion plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense in the amounts of $1,352,172 and $4,149,870, for the Miscellaneous and Safety plans, respectively.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over five years straight-lin e. All other amounts are amortized straight-line over the average expected remaining service liv es of all members that are provided w ith benefits (active, inactive and retired) as of the beginning of the measurement period.
The Expected Average Remaining Service Lifetime (“EAR SL”) is calculated by dividing the total future service years by the total number of plan participants (active, in active, and retired) in the ri sk pool. The EARSLs for the Miscellaneous and Safety plans, respectively, for th e 2020-21 measurement period are 2.5 and 3.1 years, respectively, which was obtained by dividing the total ser vice years of 1,827 and 1,365, respectively, (the sum of remaining service lifetimes of the active employees) by 734 and 441, respectively, (the total number of participants: active, inactive, and retired).
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
86 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
At June 30, 2022 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred outflows Deferred inflows
of Re sources of Resources
Contributions after measurement date 31,299,368$ -$ Changes of assumptions - (11,466,525) Difference between expected and actual experience 793,641 - Total 32,093,009$ (11,466,525)$
Miscellaneous Plan
Deferred outflows Deferred inflows
of Re sources of Resources
Contributions after measurement date 64,869,673 $ - $ Changes of assumptions - (16,574,828) Difference between expected and actual experience 1,078,100 (8,401) Total 65,947,773 $ (16,583,229) $
Safety Plan
Deferred outflows Deferred inflows
of Re sources of Resources
Contributions after measurement date 96,169,041 $ - $ Changes of assumptions - (28,041,353) Difference between expected and actual experience 1,871,741 (8,401) Total 98,040,782 $ (28,049,754) $
Aggregate Totals
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
87 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the Miscellaneous Plan and Sa fety Plan, $31,299,368 and $64,869,673 (including contributions from proceeds of 2021 Pension Obligation Bonds), respectively, were reported as de ferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended June 30, Miscellaneous Safety Total
2023 (2,291,817) $ (3,633,087) $ (5,924,904) $ 2024 (2,473,944) (3,385,515) (5,859,459) 2025 (2,743,283) (3,932,604) (6,675,887) 2026 (3,163,840) (4,553,923) (7,717,763) 2027 - - - Thereafter - - - (10,672,884)$ (15,505,129) $ (26,178,013) $ Deferred Outflows/ (Inflows) of Resources
Note 12 – Other Postemployment Benefits
Plan Description
The City provides postemployment health benefits through a single-employer defined benefit plan administered by the City. The City provides a fixed dollar contribution towards retiree health benefits for approximately 70 retirees. In addition, 294 employees are currently working and earning service credit for e ligibility for a City contribution for retiree health benefits. To be eligible for a City contri bution, an employee must retire from the City and commence pension benefits under CalPERS on or afte r age 50 with at least 20 years of service (five years for management and executive employees) with the City. Th e City provides a fixed dollar monthl y contribution equal to $10 ($20 for management, executive, and safety employees) times years of service. Employees may receive the contribution to use towards non-City health insurance, if evidence of coverage is provided. Th e City’s contribution is payable until Medicare eligibility, except management a nd executive employees are eligible for the City’s contribution during their lifetime.
Eligibility
Membership of the plan consisted of the following at June 30, 2022, the date of the latest actuarial valuation:
Active plan m em bers 286
Retirees 96
Total 382
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
88 Note 12 – Other Postemployment Benefits (Continued)
Total OPEB Liability
The City’s total OPEB liability was measu red as of June 30, 2022. The total O PEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022. Th e total OPEB liability at June 30, 2022 was:
Total OPEB liability 4,786,498$
Total OPEB liability 4,786,498$
Actuarial Assumptions
The total OPEB liability in the June 30, 2021 actuarial valuation was determined us ing the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Discount Rate
Inflation
Aggregate payroll increases
Expected long-term investment rate of return
Mortality, Term ination, and Disability
Mortality Im provem ent Scale
Pre-retirement turnover
Healthcare Trend Rate
Modified MP-2014, which converge to ultim ate m ortality im provem ent rates in 2022.
4.09%
2.50%
2.75%
n/a
CalPERS 1997-2014
Ranging from 0.01% to 17.42% based on term ination rates under the CalPERS pension plan.
An annual healthcare cost trend rate of 7.0% initially reduced by decrements to an ultimate of 4.5% thereafter.
The actuarial assumptions used in the June 30, 2022 valuati on were based on the results of an actuarial experience study for the period July 1, 2007 through June 30, 2014.
Discount Rate
The discount rate used to measure the to tal OPEB liability was 4.09 percent at th e measurement date of June 30, 2022.
It was changed from 2.19 percent at the measurement dated of June 30, 2021. This disco unt rate is the mid-point, rounded to five basis points, of the range of 3-20 year municipal bond rate indices; S&P Municipal bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, and Fidelity GO AA 20 Year Bond Index.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
89 Note 12 – Other Postemployment Benefits (Continued)
Change in the Total OPEB Liability
Total OPEB
Liab ility
Balance at June 30, 2021 6,025,707 $
Changes Recognized for the Measurement Period:
Service Cost 243,592
Interest on the total OPEB liability 134,422
Changes of benefit term s -
Difference between expected and actual experience (283,064) Changes of assumptions (1,070,116)
Contributions from the employer -
Net investment income -
Adm inistrative ex penses -
Benefit payments (264,043)
Net Changes during July 1, 2021 to June 30, 2022 (1,239,209) Balance at June 30, 2022 (Measurement Date) 4,786,498$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate th at is 1-percentage-point lower (3.09 pe rcent) or 1-percentage- point higher (5.09 percent) than the current discount rate:
Discount Rate - 1% Current Discount Discount Rate + 1%
(3.09%) Rate (4.09%) (5.09%)
5,219,008$ 4,786,498 $ 4,406,591 $ Plan's Total OPE B Liab ility
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that ar e 1-percentage-point lower (6.0 percent decreasing to 3.5 percent) or 1-percentage-point higher (8.0 percent decre asing to 5.5 percent) than the current healthcare cost trend rates:
Discount Rate - 1% Healthcare Cost Discount Rate + 1%
Trend Rates
(6.0% decreasing (7.0% decreasing (8.0% decreasing
to 3.5%) to 4.5%) to 5.5%)
4,785,852$ 4,786,498$ 4,786,949$ Plan's Total OPE B Liab ility
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
90 Note 12 – Other Postemployment Benefits (Continued)
Contributions
The contribution requirements of plan members and the City are established by and may be amended by City Council.
The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you- go basis (i.e., as medical insurance premiums become due). For fiscal year 2022, the City contributed $264,043 to the plan for current premiums. In fiscal year 2021, the City established an IRS Section 115 OP EB trust. The balance at June 30, 2022 is $3,133,184. This balance is not included in the calculation of the total OPEB liability.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $278,447.
At June 30, 2022, the City reported de ferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflow s Deferred Inflow s
of Resources of Resources
Difference between ex pected and actual ex perience -$ 400,322$ Changes of assumptions 412,212 1,005,536 Total 412,212$ 1,405,858$
Amounts reported as deferred outflows of resources and defe rred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Measurement Period Deferred Outflow s/
Ended June 30, (Inflow s) of Resources
2023 (99,567) $
2024 (99,567)
2025 (99,567)
2026 (92,907)
2027 (67,767)
Thereafter (534,271)
(993,646)$
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
91 Note 13 – Commitments and Contingencies
Litigation
The City is presently involved in certain matters of litigati on that have risen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City’s insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.
Grants
The City participates in a number of federally assisted grant programs, including those from HUD, US Department of Justice, US Department of Treasury, US Department of Tran sportation, and the US Department of Education. Receipts from these grant programs are subject to audit to determine if the monies were expended in accordance with appropriate statues, grant terms and regulations. The City believes no significant liabilities will result should any audits be performed.
Contractual Commitments
The City has contractual and regulatory commitments that will result in expenses in future fiscal years. These include operating and capital contractual commitments. As of June 30, 2022, the City had a total of 449 contractual commitments with a remaining balan ce of $75,532,184. The following table represents the City’s contractual commitments by contract type.
Construction 17,367,495$
Consulting services 50,748,481
Legal services 2,257,027
Professional services 5,159,181
Total contractual commitments 75,532,184$
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
92 Note 14 – Classification of Fund Balances
The City classifies fund balances, as shown on the Balance Sheet – Governmental Funds as of June 30, 2022 as follows:
Housing Choice Housing Other
Voucher Sewer ARPA Other Authority POB Debt Governmental General Housing Program Service Special Revenue Special Revenue Special Revenue Service Funds Total Nonspendable
Land held for resale 3,909,182$ 1,245,000$ -$ -$ -$ -$ -$ -$ -$ 5,154,182$ Inventories and prepaid items 57,447 - - - - - 25,805 - - 83,252 Total nonspendable 3,966,629 1,245,000 - - - - 25,805 - - 5,237,434 Restricted
Housing - 11,200,189 1,272,869 - - 3,748 49,531,913 - - 62,008,719 Debt service - - - - - - - - 962,877 962,877 Community development 20,000 - - - - - - - 1,419,036 1,439,036 Public safety - - - - - - - - 206,028 206,028 Transportation - - - - - - - - 1,335,765 1,335,765 General services - - - 22,386,760 - - - - 2,959,396 25,346,156 Section 115 OPEB trust 3,133,184 - - - - - - - - 3,133,184 Section 115 pension trust 6,393,549 - - - - - - - - 6,393,549 Total restricted 9,546,733 11,200,189 1,272,869 22,386,760 - 3,748 49,531,913 - 6,883,102 100,825,314 Committed
Facilities maintenance 2,880,000 - - - - - - - - 2,880,000 Economic contingency 12,800,000 - - - - - - - - 12,800,000 Total committed 15,680,000 - - - - - - - - 15,680,000 Assigned
Accrued employee benefits 3,882,541 - - - - - - - - 3,882,541 Pension stabilization - - - - - - - - - - Post-employment benefits - - - - - - - - - - Community development 679,490 - - - - - - - - 679,490 Public safety 33,138 - - - - - - - - 33,138 Transportation 1,106,714 - - - - - - - - 1,106,714 General Services 2,698,835 - - - - - - - - 2,698,835 Public health - - - - - - - - - - Total assigned 8,400,718 - - - - - - - - 8,400,718 Unassigned (deficit) 19,469,523 - - - - - - - (210,125) 19,259,398 Total fund balances 57,063,603$ 12,445,189$ 1,272,869$ 22,386,760$ -$ 3,748$ 49,557,718$ -$ 6,672,977$ 149,402,864$ Major Funds
Categorization of Reserves under Adopted City Policies
The City has a policy that governs the accumulation and maintenance of r eserves for various purposes. Amounts for some of the General Fund reserves are reflected in the schedule above and are described as follows:
1) Section 115 Pension Trust – represents funds that may be used only for pension-related costs and only upon the direction of City Council. The target level for this reserve is an amount equal to two years of unfunded liability payments as determined by the most recent CalPERS valuation reports. The amount in the Section 115 Pension Trust reserve as of June 30, 2022 was $6,393,549.
2) Section 115 OPEB Trust – represents funds that may be used only for other post-employment benefit (OPEB)-related costs and only upon the direction of City Council. The target level for this reserve is an amount equal to 80% of the total net OPEB liability of the City’s OPEB plan. The amount in the Section 115 OPEB Trust reserve as of June 30, 2022 was $3,133,184.
3) Economic Contingency Reserve – represents funds that are set-aside for use only in exceptional circumstances such as catastrophic events that could negativ ely impact the financial condition of the City . The targeted funding level is 20% of a single year’s budgeted Gene ral Fund operating expenditu res. City Policy requires approval of the City Council by resolution to authorize draws on this reserve or to increase the amount. The amount of the contingency reserve as of June 30, 2022 was $12,800,000 and is equal to the target level.
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
93 Note 14 – Classification of Fund Balances (Continued)
Categorization of Reserves under Adopted City Policies (Continued)
4) Facilities Maintenance Reserve – represents funds that are set aside for extraordinary major maintenance costs that cannot be met within the annual budgeted amount and for which no other funding source is available. The targeted reserve level represents th ree times the annual amount to be budgeted for major maintenance projects. City Council approval is required for all additions to or transfers and expenditures from this reserve. The amount of the Facilities Maintenance Reserve as of June 30, 2022 was $2,880,000 and is equal to the target level.
5) Unassigned Fund Balance – The City’s policy is to maintain an un assigned fund balance equal to 10% of a single year’s budgeted General Fund ope rating expenditures. Amounts in excess of the target level will be used to increase or replenish other reserves (with priority given to th e Economic Contingency and Facilities Maintenance reserves), to set aside resources for spec ific one-time uses, or as a funding source for one-time expenditures included in the annual budget or for needs that arise subsequent to budget adoption. As of June 30, 2022, the unassigned fund balance was $19,469,523 which is above the target level of $6.1 million.
Note 15 – Prior Period Adjustments
The City recorded the following prior period adjustments in order to transfer capital assets from the Successor Agency Private Purpose Trust Fund to the Governmental Activiti es and to remove infrastructure assets that were double- counted.
Suc c essor
Agency
Private Purpose
Governmental Trust
Activities Fund
Beginning net position, as previously reported 215,434,062 $ (28,189,011) $ Prior period adjustments:
To transfer capital assets from the Successor Agency 450,000 (450,000) To remove double-counted infrastructure (2,388,142) - Beginning net position, as restated 213,495,920 $ (28,639,011) $
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
94 Note 16 – Net Investment in Capital Assets
At June 30, 2022, the net investment in capital assets cat egory of net position for th e governmental-activities was calculated as follows:
Net Investment
in Capital Assets
Non-depreciable capital assets 58,648,162 $
Depreciable capital assets, net 112,213,877
Deferred loss on refunding 25,200
2012 General Obligation Bonds (2,490,000)
Bond premium (9,628)
Section 108 Bonds (1,170,000)
2017 Clean Energy Bonds (1,800,000)
2017 Lease Revenue Bonds (2,933,781)
Notes payable (550,588)
Lease liabilities (479,639)
Total net inv estment in capital assets 161,453,603$
Note 17 – Subsequent Events
American Rescue Plan Act Funding
As part of its budget process, the U.S. Department of the Treasury allocated $18,010,907 of American Rescue Plan Act (ARPA) funds to the City. Allocations to the City starte d July 2021 when the City r eceived $9,005,454 in the first tranche. The Department of Treasury allocated the second tranche of $9,005,454 in ARPA funding to the City in July of 2022.
95 REQUIRED SUPPLEMENTARY
INFORMATION
This page intentionally left blank
96 This page intentionally left blank
City of National City
Required Supplementary Information (Unaudited)
Budgetary Information
For the Year Ended June 30, 2022
97 The City follows these procedures in establishing the b udgetary data reflected in the required supplementary information and other supplementary information budgetary comparison schedules:
The City Council annually adopts a budget for operating and capital project expenditures. The annual budget includes all proposed expenditures and inter-fund transfers, and the means of financing them. The City Council also approves any amendments to appropriations throughout the year, generally at the mid-year budget review in February. The legal level of budgetary control is the fund level. The budget figures used in the required supplementary information are both original and final budgeted amounts. The final budget amount includes the original budget plus any amendments adopted during the year and any amounts encumbered from the prior year for capital projects or outstanding purchase orders.
Formal budgetary integration is employ ed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Appropriations which are unencumbered lapse at year end.
Budgets for the General and special revenue funds are a dopted on a basis substantially consistent with accounting principles generally accepted in the United States of Americ a. Accordingly, actual revenue and expenditures can be compared with related budgeted amounts without any significant reconciling items.
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceed s of taxes, and if proceed s of taxes exceed allowed appropriations, the excess must either be refunded to the Stat e Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. Further, Section 5 of Article XIIIB allows the City to designate a por tion of fund balance for general contingencies to be used in future years without limitation.
City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – General Fund
For the Year Ended June 30, 2022
98 Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Taxes 50,699,860$ 50,699,860$ 58,055,986$ 7,356,126$ Licenses and permits 808,454 808,454 1,027,101 218,647 Fines and forfeitures 461,000 461,000 1,118,543 657,543 Use of money and property 800,200 800,200 (622,905) (1,423,105) Intergovernmental 226,000 1,010,824 1,650,917 640,093 Charges for services 3,341,562 3,341,562 3,499,318 157,756 Other revenues 790,891 807,691 827,561 19,870 Total revenues 57,127,967 57,929,591 65,556,521 7,626,930 EXPENDITURES :
Current:
General government 7,733,844 9,190,147 6,354,312 2,835,835 Public safety 39,722,837 41,386,717 40,793,529 593,188 Transportation 3,736,122 4,203,561 3,249,445 954,116 Community development 231,175 231,978 184,148 47,830 Culture and leisure 3,922,540 4,104,671 3,500,623 604,048 Capital outlay 2,866,930 7,186,581 1,791,456 5,395,125 Debt service:
Principal 304,868 304,868 293,127 11,741 Interest and fiscal charges 348,945 348,945 358,823 (9,878) Total expenditures 58,867,261 66,957,468 56,525,463 10,432,005
REVENUES OVER
(UNDER) EXPENDITURES (1,739,294) (9,027,877) 9,031,058 18,058,935
OTH E R F I NA NCI NG SOU R CE S (U SE S)
Pass-through payment to other agencies - - (2,017) (2,017) Transfers in - - 24,956 24,956 Transfers out - - (2,883,445) (2,883,445) Total other financing sources (uses) - - (2,860,506) (2,860,506) Net change in fund balance (1,739,294)$ (9,027,877)$ 6,170,552 15,198,429$ Fund Balance:
Beginning of year 50,893,051
End of year 57,063,603$
Budgeted Amounts
City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Housing Special Revenue Fund For the Year Ended June 30, 2022
99 Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Use of money and property 250,000$ 250,000$ 270,303$ 20,303$ Other revenues - - 3,982 3,982 Total revenues 250,000 250,000 274,285 24,285 EXPENDITURES :
Current:
Community development 186,161 313,007 145,893 167,114 Total expenditures 186,161 313,007 145,893 167,114 Net change in fund balance 63,839$ (63,007)$ 128,392 191,399$ Fund Balance:
Beginning of year 12,316,797
End of year 12,445,189$
Budgeted Amounts
City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Housing Choice Vouchers Special Revenue Fund For the Year Ended June 30, 2022
100
Actual Variance with
Orginal Final Amounts Final Budget
REVENUES :
Fines and forfeitures 16,000$ 16,000$ 28,748$ 12,748$ Use of money and property 110 110 363 253 Intergovernmental 14,199,000 14,199,000 14,255,356 56,356 Other revenues - - - - Total revenues 14,215,110 14,215,110 14,284,467 69,357 EXPENDITURES :
Current:
Community development 14,060,275 14,094,991 13,969,798 (125,193) Capital outlay 150,000 150,000 - (150,000) Interest and fiscal charges 4,000 4,000 4,000 - Total expenditures 14,214,275 14,248,991 13,973,798 (275,193) Net change in fund balance 835$ (33,881)$ 310,669 344,550$ Fund Balance:
Beginning of year 962,200
End of year 1,272,869$
Budgeted Amounts
City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Sewer Special Revenue Fund For the Year Ended June 30, 2022
101
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Licenses and permits -$ -$ 67,550$ 67,550$ Use of money and property - - (274,903) (274,903) Charges for services 9,599,525 9,599,525 11,055,251 1,455,726 Total revenues 9,599,525 9,599,525 10,847,898 1,248,373 EXPENDITURES :
Current:
General Government - 92,003 - (92,003) Health 8,336,502 8,405,015 7,626,002 779,013 Capital outlay 2,000,000 3,608,804 26,258 3,582,546 Debt service:
Interest and fiscal charges - - 21,300 (21,300) Total expenditures 10,336,502 12,105,822 7,673,560 4,248,256
REVENUES OVER
(UNDER) EXPENDITURES (736,977) (2,506,297) 3,174,338 5,496,629 OTH E R F I NA NCI NG SOU R CE S (U SE S):
Transfers out - - (25,000) (25,000) Total other financing sources (uses) - - (25,000) (25,000) Net change in fund balance (736,977)$ (2,506,297)$ 3,149,338 5,655,635$ Fund Balance:
Beginning of year 19,237,422
End of year 22,386,760$
Budgeted Amounts
City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – ARPA Special Revenue Fund For the Year Ended June 30, 2022
102
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental -$ -$ 3,525,586$ 3,525,586$ Total revenues - - 3,525,586 3,525,586 EXPENDITURES :
Current:
General Government - 1,540,000 3,341,026 (1,801,026) Capital outlay - 6,750,000 184,560 6,565,440 Total expenditures - 8,290,000 3,525,586 4,764,414
REVENUES OVER
(UNDER) EXPENDITURES - (8,290,000) - 8,290,000 OTH E R F I NA NCI NG (U SE S):
Transfers out - - - - Total other financing (uses) - - - - Net change in fund balance -$ (8,290,000)$ - 8,290,000$ Fund Balance (deficit):
Beginning of year -
End of year -$
Budgeted Amounts
City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Other Special Revenue Fund For the Year Ended June 30, 2022
103
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Taxes 487,036$ 487,036$ 471,007$ (16,029)$ Licenses and permits 217,860 217,860 470,426 252,566 Fines and forfeitures 50,000 50,000 49,250 (750) Use of money and property - - (40,200) (40,200) Intergovernmental 10,057,650 30,526,083 4,707,139 (25,818,944) Charges for services 35,000 35,000 315,909 280,909 Other revenues - - 350 350 Total revenues 10,847,546 31,315,979 5,973,881 (25,342,098) EXPENDITURES :
Current:
General Government 300,000 2,163,000 1,753,133 409,867 Public Safety 924,972 1,677,209 1,463,088 214,121 Community Development 5,100 145,687 108,935 36,752 Health 207,860 242,652 189,407 53,245 Culture and Leisure 195,133 245,133 204,096 41,037 Capital outlay 100,000 25,824,461 3,806,201 22,018,260 Total expenditures 1,733,065 30,298,142 7,524,860 22,773,282
REVENUES OVER
(UNDER) EXPENDITURES 9,114,481 1,017,837 (1,550,979) (2,568,816) OTH E R F I NA NCI NG SOU R CE S (U SE S):
Transfers in - - 631,317 631,317 Transfers out - - (5,500) (5,500) Total other financing sources (uses) -
- 625,817 625,817 Net change in fund balance 9,114,481$ 1,017,837$ (925,162) (1,942,999)$ Fund Balance:
Beginning of year 928,910
End of year 3,748$
Budgeted Amounts
104
This page intentionally left blank
City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Housing Authority Special Revenue Fund For the Year Ended June 30, 2022
105
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Use of money and property 175,000$ 175,000$ 833,268$ 658,268$ Other revenues 86,543 136,543 70,344 (66,199) Total revenues 261,543 910,257 903,612 (6,645) EXPENDITURES :
Current:
Community Development 1,221,786 1,586,907 1,040,814 546,093 Capital outlay 11,662,000 12,035,532 10,739,542 1,295,990 Total expenditures 12,883,786 13,622,439 11,780,356 1,842,083
REVENUES OVER
(UNDER) EXPENDITURES (12,622,243) (12,712,182) (10,876,744) 1,835,438 OTHER FINANCING (US ES ):
Transfers out - - (526,641) (526,641) Total other financing (uses) - - (526,641) (526,641) Net change in fund balance (12,622,243)$ (12,712,182)$ (11,403,385) 1,308,797$ Fund Balance:
Beginning of year 60,961,103
End of year 49,557,718$
Budgeted Amounts
City of National City
Required Supplementary Information (Unaudited) (Continued) Schedules of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years*
For the Year Ended June 30, 2022
106
City Miscellaneous Plan
Total pension liability 2020-2021 2019-2020 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Service cost 2,104,183 $ 2,086,122 $ 2,212,767 $ 2,282,129 $ 2,118,219 $ 1,825,480 $ 1,811,929 $ 1,937,067 $ Interest on total p ension liability 9,982,628 9,588,327 9,170,414 8,802,231 8,488,639 8,268,915 7,985,539 7,748,026 Changes in assumptions - - - (953,437) 7,027,519 - (1,944,963) - Differences between exp ected and actual exp erience 909,313 1,074,893 147,608 371,057 (1,231,712) (975,368) (1,691,529) - Chang es in benefit terms - - - - - - - - Benefit payments, including refunds of employee contributions (7,266,866) (6,889,353) (6,210,287) (5,885,469) (5,555,553) (5,253,955) (4,995,309) (4,818,483) Net change in total pension liability 5,729,258 5,859,989 5,320,502 4,616,511 10,847,112 3,865,072 1,165,667 4,866,610 Total pension liability - beginning 141,289,184 135,429,195 130,108,693 125,492,182 114,645,070 110,779,998 109,614,331 104,747,721 Total pension liability - ending (a) 147,018,442$ 141,289,184 $ 135,429,195 $ 130,108,693 $ 125,492,182 $ 114,645,070 $ 110,779,998 $ 109,614,331 $ Plan fiduciary net position
Contributions - employer 4,120,557 $ 3,888,994 $ 3,370,946 $ 2,953,421 $ 2,854,739 $ 2,367,548 $ 2,056,706 $ 1,956,344 $ Contributions - employee 859,274 944,908 1,041,592 933,458 858,901 820,175 895,912 767,784 Investment income (net of administrative expenses) 23,035,688 4,925,312 6,286,416 7,575,282 9,198,616 415,274 1,859,184 12,778,105 Benefit payments (7,266,866) (6,889,353) (6,210,287) (5,885,469) (5,555,553) (5,253,955) (4,995,309) (4,818,483) Plan to plan resource movement - - - (221) - (135) - - Administrative expenses (102,218) (140,408) (67,699) (406,601) (122,207) (51,483) (94,900) - Net change in plan fiduciary net position 20,646,435 2,729,453 4,420,968 5,169,870 7,234,496 (1,702,576) (278,407) 10,683,750 Plan fiduciary net position - beginning 102,326,786 99,597,333 95,176,365 90,006,495 82,771,999 84,474,575 84,752,982 74,069,232 Plan fiduciary net position - ending (b) 122,973,221$ 102,326,786$ 99,597,333$ 95,176,365$ 90,006,495$ 82,771,999$ 84,474,575$ 84,752,982$ Net pension liability - ending (a )-(b) 24,045,221$ 38,962,398$ 35,831,862$ 34,932,328$ 35,485,687$ 31,873,071$ 26,305,423$ 24,861,349$ Plan fiduciary net position as a percentage of the
total pension liability 83.64% 72.42% 73.54% 73.15% 71.72% 72.20% 76.25% 77.32% Covered payroll 11,606,086$ 11,276,333$ 11,582,137$ 11,885,467$ 10,724,047$ 10,126,926$ 9,742,081$ 9,853,337$ Net pension liability as a percentag e of covered-
employee payroll 207.18% 345.52% 309.37% 293.91% 330.90% 314.74% 270.02% 252.31% Notes to Schedule:
Historical information is presented only for measurement periods for which GASB 68 is implemented.
Benefit changes: the figures above do not include any liability imp act that may have resulted from plan changes which occurred after June 30, 2014. This applies for voluntary benefit changes as well as any offers of Two Years of Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions: In 2018, demographic assump tions and inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expenses) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
City of National City
Required Supplementary Information (Unaudited) (Continued) Schedules of Changes in the Net Pension Liability and Related Ratios (Continued) Last Ten Fiscal Years *
For the Year Ended June 30, 2022
107
City Safety Plan
Total pension liability 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Service cost 4,028,937 $ 4,127,384 $ 4,023,972 $ 4,006,475 $ 3,730,242 $ 3,143,806 $ 3,185,323 $ 3,249,200 $ Interest on total pension liability 15,639,864 14,940,058 14,344,993 13,628,845 12,890,015 12,491,615 12,122,308 11,761,448 Changes in assumptions - - - (922,226) 10,998,755 - (3,049,086) - Differences between expected and actual experience 1,427,840 (22,405) 1,773,685 3,413,390 (1,384,693) (2,263,779) (2,416,366) - Changes in benefit terms - - - - - - - - Benefit payments, including refunds of employee contributions (10,871,690) (10,445,430) (9,705,935) (9,097,472) (8,735,024) (8,368,654) (8,022,441) (7,719,645) Net change in total pension liability 10,224,951 8,599,607 10,436,715 11,029,012 17,499,295 5,002,988 1,819,738 7,291,003 Total pension liability - beginning 220,732,894 212,133,287 201,696,572 190,667,560 173,168,265 168,165,277 166,345,539 159,054,536 Total pension liability - ending (a) 230,957,845$ 220,732,894$ 212,133,287$ 201,696,572$ 190,667,560$ 173,168,265$ 168,165,277$ 166,345,539$ Plan fiduciary net position
Contributions - employer 7,850,354$ 7,377,465$ 6,484,462$ 5,838,406$ 5,748,626$ 4,978,090$ 4,463,726$ 4,190,264$ Contributions - employee 1,488,276 1,492,776 1,371,743 1,357,948 1,238,443 1,109,955 1,047,676 983,295 Investment income (net of administrative expenses) 33,123,497 7,091,313 8,798,970 10,630,597 12,739,410 584,907 2,587,755 17,466,806 Benefit payments (10,871,690) (10,445,430) (9,705,935) (9,097,472) (8,735,024) (8,368,654) (8,022,441) (7,719,645) Plan to plan resource movement - - - (311) - 135 - - Administrative expenses (145,755) (198,201) (95,127) (567,286) (169,427) (71,013) (131,164) - Net change in plan fiduciary net position 31,444,682 5,317,923 6,854,113 8,161,882 10,822,028 (1,766,580) (54,448) 14,920,720 Plan fiduciary net position - beginning 145,910,227 140,592,304 133,738,191 125,576,309 114,754,281 116,520,861 116,575,309 101,654,589 Plan fiduciary net position - ending (b) 177,354,909$ 145,910,227$ 140,592,304$ 133,738,191$ 125,576,309$ 114,754,281$ 116,520,861$ 116,575,309$ Net pension liability - ending (a)-(b) 53,602,936$ 74,822,667$ 71,540,983$ 67,958,381$ 65,091,251$ 58,413,984$ 51,644,416$ 49,770,230$ Plan fiduciary net position as a percentage of the
total pension liability 76.79% 66.10% 66.28% 66.31% 65.86% 66.27% 69.29% 70.08% Covered payroll 13,456,702$ 13,576,921$ 13,034,797$ 12,898,732$ 11,939,450$ 11,157,745$ 11,228,972$ 10,916,911$ Net pension liability as a percentage of covered-
employee payroll 398.34% 551.10% 548.85% 526.86% 545.18% 523.53% 459.92% 455.90% Notes to Schedule:
Historical information is presented only for measurement periods for which GASB 68 is implemented.
Benefit changes: the figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2014. This applies for voluntary benefit changes as well as any offers of Two Years of Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expenses) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
City of National City
Required Supplementary Information (Unaudited) (Continued) Schedules of Pension Contributions
Last Ten Fiscal Years *
For the Year Ended June 30, 2022
108
Measurement Period 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially determined contribution 4,486,273$ 4,120,557$ 3,888,994$ 3,371,801$ 2,953,694$ 2,854,739$ 2,367,548$ 2,056,706$ 1,956,344$ Contributions in relation to the actuarially determined contributions (31,299,368) (4,120,557) (3,888,994) (3,371,801) (2,953,694) (2,854,739) (2,367,548) (2,056,706) (1,956,344) Contribution deficiency (excess) (26,813,095)$ - $ - $ - $ - $ - $ - $ - $ - $ Covered payrol l 2, 3 11,925,253$ 11,606,086$ 11,276,333$ 11,582,137$ 11,885,467$ 10,724,074$ 10,126,926$ 9,742,081$ 9,853,337$ Contributions as a percentage of covered
payroll 3 262.46% 35.50% 34.49% 29.11% 24.85% 26.62% 23.38% 21.11% 19.85% Notes to Schedule
Valuation date: 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Ag e Normal
Amortization method/period For details, see June 30, 2017 Funding Valuation Report Asset valuation method M arket value of assets. For details, see the June 30, 2017 Funding Valuation Report.
Inflation 2.625%
Salary increases Varies by entry age and service
Payroll growth 2.750%
Investment rate of return 7.00%, net of pension plan investment and administrative expenses, including inflation Retirement age
M ortality
City Miscellaneous Plan - 172
Historical inform ation is required only for m easurem ent periods for which G ASB 68 is im plem ented. 1 Em ployers are assum ed to m ake contributions equal to the actuarially determ ined contributions. However, som e em ployers m ay choose to m ake additional contributions towards their unfunded liability. Em ployer contributions for such plans ex ceed the actuarially determined contributions. 2 Covered Payroll represented above is based on pensionable earnings provided by the em ployer. However, G ASB 68 defines covered-em ployee payroll as the total payroll of em ployees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered-em ployees, the em ployer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios. 3 Payroll from prior year, $11,606,086, was assum ed to increase by the 2.75% payroll growth assum ption.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2014-15 were from the June 30, 2012 public agency valuations.
The probabilities of retirement are based on the 2014 CalPERS Experience study for the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
City of National City
Required Supplementary Information (Unaudited) (Continued) Schedules of Pension Contributions (Continued)
Last Ten Fiscal Years *
For the Year Ended June 30, 2022
109
Measurement Period 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially determined contribution 8,422,768$ 7,849,867$ 7,377,465$ 6,484,462$ 5,838,406$ 5,748,626$ 4,978,090$ 4,463,726$ 4,190,264$ Contributions in relation to the actuarially determined contributions (64,869,673) (7,849,867) (7,377,465) (6,484,462) (5,838,406) (5,748,626) (4,978,090) (4,463,726) (4,190,264) Contribution deficiency (excess) (56,446,905)$ - $ - $ - $ - $ - $ - $ - $ - $ Covered payrol l 2, 3 13,826,761$ 13,456,702$ 13,576,921$ 13,034,797$ 12,898,732$ 11,939,450$ 11,157,745$ 11,228,972$ 10,916,911$ Contributions as a percentage of covered
payroll 3 469.16% 58.33% 54.34% 49.75% 45.26% 48.15% 44.62% 39.75% 38.38% Notes to Schedule
Valuation date: 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Ag e Normal
Amortization method/period For details, see June 30, 2017 Funding Valuation Report Asset valuation method M arket value of assets. For details, see the June 30, 2017 Funding Valuation Report.
Inflation 2.625%
Salary increases Varies by entry age and service
Payroll growth 2.750%
Investment rate of return 7.00%, net of pension plan investment and administrative expenses, including inflation Retirement age The probabilities of retirement are based on the 2014 CalPERS Experience study for the period from 1997 to 2015.
M ortality
City Safety Plan - 4923
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
Historical inform ation is required only for m easurem ent periods for which G ASB 68 is im plem ented. 1 Em ployers are assum ed to m ake contributions equal to the actuarially determ ined contributions. However, som e em ployers m ay choose to m ake additional contributions towards their unfunded liability. Em ployer contributions for such plans ex ceed the actuarially determined contributions. 2 Covered Payroll represented above is based on pensionable earnings provided by the em ployer. However, G ASB 68 defines covered-em ployee payroll as the total payroll of em ployees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered-em ployees, the em ployer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios. 3 Payroll from prior year, $13,456,702, was assum ed to increase by the 2.75% payroll growth assum ption.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2014-15 were from the June 30, 2012 public agency valuations.
City of National City
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Fiscal Years 1
For the Year Ended June 30, 2022
110
M easurement p eriod, year ending: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPE B liability
Service cost 243,592 $ 215,583 $ 190,082 $ 201,904 $ 196,023 $ 189,577 $ Interest 134,422 153,536 169,175 187,984 177,753 170,970 Changes of benefit terms - - - - - - Differences between expected and actual experience (283,064) (70,912) - (131,753) - - Changes of assumptions (1,070,116) 301,024 267,125 (25,433) (53,296) - Benefit payments, including refunds of member contributions (264,043) (258,237) (244,418) (198,069) (168,761) (166,220) Net change in total OPE B liab ility (1,239,209) 340,994 381,964 34,633 151,719 194,327 Total OPE B liability - b eginning 6,025,707 5,684,713 5,302,749 5,268,116 5,116,397 4,922,070 Total OPE B liability - ending (a) 4,786,498$ 6,025,707 $ 5,684,713 $ 5,302,749 $ 5,268,116 $ 5,116,397 $ OPEB fiduciary net position
Contributions - employer 264,043$ 258,237$ 244,418$ 198,069$ 168,761$ 166,220$ Net investment income - - - - - - Benefit payments, including refunds of member contributions (264,043) (258,237) (244,418) (198,069) (168,761) (166,220) Administrative expense - - - - - - Net change in plan fiduciary net position - - - - - - Plan fiduciary net position - beginning - - - - - - Plan fiduciary net position - ending (b) - - - - - - Plan net OPEB liability - ending (a) - (b) 4,786,498$ 6,025,707$ 5,684,713$ 5,302,749$ 5,268,116$ 5,116,397$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered payroll 24,976,459$ 24,723,720$ 24,062,015$ 23,361,180$ 23,316,000$ 23,316,000$ Plan net OPEB liability as a percentage of covered payroll 19.16% 24.37% 23.63% 22.70% 22.59% 21.94% 1 Historical information is presented only for periods for which GASB 75 is implemented.
SUPPLEMENTARY INFORMATION
111Page 898 of 1017
This page intentionally left blank.
BASIC FINANCIAL STATEMENTS
112Page 899 of 1017
NON-MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
Library Fund - This fund is used to account for the operation of the National City Library.
Parks Maintenance Fund - This fund is used to account for operating and maintaining the City's parks.
Library Capital Outlay Fund - This fund is used to account for revenues from real property transfer taxes set aside to finance capital outlay and capital improvement expenditures of the National City Library.
Gas Tax Fund - This fund is used to account for the City's share of state gas tax revenue restricted for street improvement and maintenance.
Community Development Block Grant (CDBG) Fund - This fund is used to account for federal funds received from HUD – Community Development Block Program.
HOME Program Fund - This fund is used to account for federal funds received from HUD HOME Program.
Asset Forfeiture Fund - This fund is used to account for the receipt and expenditure of funds provided by the federal government’s asset seizure fund to be used exclusively for law enforcement purposes.
Nutrition Fund - This fund is used for reporting the operations of the Nutrition program that is funded by a combination of grants funds from the County, a transfer from the Housing Authority, and voluntary payments from those who receive meals through the program.
113Page 900 of 1017
This page intentionally left blank.
BASIC FINANCIAL STATEMENTS
114Page 901 of 1017
NON-MAJOR
GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS:
Library Bonds Debt Service Fund - This fund is used to account for the property taxes collected for and debt service payments made on the bonds that were issued for construction of the library.
CAPITAL PROJECT FUNDS:
STP Local/TransNet Highway Fund - This fund is used to account for funds received from the San Diego Association of Governments (“SANDAG”) for TransNet projects.
Proposition “A ” Capital Projects Fund - This fund is used to account for funds received fro m the San Diego Association of Governments (“SANDAG”) for TransNet projects. Projects are funded by a one-half cent transactions and use tax approved by the voters in San Diego County.
State-Local Partnership Fund - This fund is used to account for the receipt and expenditures of funds provided by the State under the State-Local Transportation Partnership Program.
PERMANENT FUNDS:
Library Endowment Fund - This fund is used to account for a financial endowment made to the Library. Only interest earned on the principal can be used to purchase books and other library materials. 115Page 902 of 1017
Library
Parks Capital
Library Maintenance Outlay Gas Tax CDBG
ASSETS
Cash and investments 683,676$ 132,308$ 881,048$ 947,071$ -$ Receivables:
Accounts - - - - - Taxes 7,330 8,541 18,874 331,450 - Interest - - - 2,418 - Loans - - - - 31,215 Due from other funds - - - - - Total assets 691,006$ 140,849$ 899,922$ 1,280,939$ 31,215$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 28,668$ 12,570$ 4,040$ 58,822$ 64,260$ Accrued liabilities 52,176 61,517 - 19,003 2,934 Due to other funds - - - - 174,146 Unearned revenue - - - - - Total liabilities 80,844 74,087 4,040 77,825 241,340 Fund Balances (deficit):
Restricted 610,162 66,762 895,882 1,203,114 - Unassigned (deficit) - - - - (210,125) Total fund balances 610,162 66,762 895,882 1,203,114 (210,125) Total liabilities, deferred inflows of
resources, and fund balances 691,006$ 140,849 $ 899,922 $ 1,280,939 $ 31,215 $ (Continued)
City of National City
Combining Balance Sheet
Special Revenue
Non-Major Governmental Funds
June 30, 2022
116Page 903 of 1017
Debt Service Capital Projects
HOME Asset Library STP Local/
Program Forfeiture Nutrition Bonds TransNet
ASSETS
Cash and investments 830,778 $ 221,681 $ 25,223 $ 959,749 $ - $ Receivables:
Accounts 9,794 - 99,354 - 13 Taxes - - - 1,095 - Interest 1,794 466 - 2,034 - Loans 620,780 - - - - Due from other funds - - - - - Total assets 1,463,146$ 222,147$ 124,577$ 962,877$ 13$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 33,949$ 16,119$ 14,217$ -$ -$ Accrued liabilities 9,073 - 64,717 - - Due to other funds - - 28,248 - - Unearned revenue 1,088 - - - - Total liabilities 44,110 16,119 107,182 - - Fund Balances (deficit):
Restricted 1,419,036 206,028 17,395 962,877 13 Unassigned (deficit) - - - - - Total fund balances 1,419,036 206,028 17,395 962,877 13 Total liabilities, deferred inflows of
resources, and fund balances 1,463,146$ 222,147 $ 124,577 $ 962,877 $ 13 $ (Continued)
City of National City
Combining Balance Sheet (Continued)
June 30, 2022
Non-Major Governmental Funds
Special Revenue
117Page 904 of 1017
Permanent
Total
Other
State-Local Library Governmental
Proposition A Partnership Endowment Funds
ASSETS
Cash and investments 1,398,981 $ 132,372 $ 53,426 $ 6,266,313 $ Receivables:
Accounts - - - 109,161 Taxes - - - 367,290 Interest 2,962 279 113 10,066 Loans - - - 651,995 Due from other funds - - - - Total assets 1,401,943$ 132,651$ 53,539$ 7,404,824$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 86,300$ -$ -$ 318,945$ Accrued liabilities - - - 209,420 Due to other funds - - - 202,394 Unearned revenue - - - 1,088 Total liabilities 86,300 - - 731,847 Fund Balances (deficit):
Restricted 1,315,643 132,651 53,539 6,883,102 Unassigned (deficit) - - - (210,125) Total fund balances 1,315,643 132,651 53,539 6,672,977 Total liabilities, deferred inflows of
resources, and fund balances 1,401,943$ 132,651 $ 53,539 $ 7,404,824 $ (Concluded)
Capital Projects
City of National City
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
118Page 905 of 1017
Library
Parks Capital
Library Maintenance Outlay Gas Tax CDBG
REVENUES:
Taxes 923,627 $ 1,076,260 $ 307,039 $ 2,752,580$ -$ Fines and forfeitures - - - - - Use of money and property - - - (13,622) - Intergovernmental 4,822 5,619 - - 1,491,072 Charges for services - - - - - Other revenues - - 11,531 811 3,320 Total revenues 928,449 1,081,879 318,570 2,739,769 1,494,392 EXPENDITURES:
Current:
General government - - - - - Public safety - - - - - Transportation - - - 1,684,411 - Community development - - - - 406,708 Health - - - - - Culture and leisure 1,808,229 1,403,124 40,948 - 5,546 Capital outlay - - - 981,084 - Debt service:
Principal - - - - 535,391 Interest and fiscal charges - 45,700 - - 21,501 Total ex
penditures 1,808,229 1,448,824 40,948 2,665,495 969,146
REVENUES OVER
(UNDER) EXPENDITURES (879,780) (366,945) 277,622 74,274 525,246 OTHER FINANCING SOURCES:
Transfers in 903,737 430,963 - - 12,143 Total other financing sources 903,737 430,963 - - 12,143 CHANGES IN FUND BALANCES 23,957 64,018 277,622 74,274 537,389 FUND BALANCES (DEFICIT):
Beginning of year 586,205 2,744 618,260 1,128,840 (747,514) End of yea
r 610,162$ 66,762$ 895,882$ 1,203,114$ (210,125)$ (Continued)
Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances City of National City
For the Year Ended June 30, 2022
Non-Major Governmental Funds
119Page 906 of 1017
Debt Service Capital Projects
HOME Asset Library STP Local/
Program Forfeiture Nutrition Bonds TransNet
REVENUES:
Taxes - $ - $ - $ 340,080$ -$ Fines and forfeitures - 2,672 - - - Use of money and property 12,902 (2,715) - (11,848) - Intergovernmental 396,007 - 333,159 - - Charges for services - - - - - Other revenues 20,382 - 64,632 - - Total revenues 429,291 (43) 397,791 328,232 - EXPENDITURES:
Current:
General government - - - - - Public safety - 9,612 - - - Transportation - - - - - Community development 251,183 - - - - Health - - 59,389 - - Culture and leisure - - 918,433 - - Capital outlay - 16,119 - - - Debt service:
Principal - - - 300,000 - Interest and fiscal charges - - - 88,505 - Total ex
penditures 251,183 25,731 977,822 388,505 -
REVENUES OVER
(UNDER) EXPENDITURES 178,108 (25,774) (580,031) (60,273) - OTHER FINANCING SOURCES:
Transfers in - - 526,641 - - Total other financing sources - - 526,641 - - CHANGES IN FUND BALANCES 178,108 (25,774) (53,390) (60,273) - FUND BALANCES (DEFICIT):
Beginning of year 1,240,928 231,802 70,785 1,023,150 13 End of yea
r 1,419,036$ 206,028 $ 17,395$ 962,877$ 13$ (Continued)
Special Revenue
City of National City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2022
120Page 907 of 1017
Permanent
Total
Other
State-Local Library Governmental
Proposition A Partnership Endowment Funds
REVENUES:
Taxes -$ - $ - $ 5,399,586$ Fines and forfeitures - - - 2,672 Use of money and property (19,596) (1,630) - (36,509) Intergovernmental 1,462,500 - (657) 3,692,522 Charges for services - - - - Other revenues - - - 100,676 Total revenues 1,442,904 (1,630) (657) 9,158,947 EXPENDITURES:
Current:
General government - - - - Public safety - - - 9,612 Transportation - - - 1,684,411 Community development - - - 657,891 Health - - - 59,389 Culture and leisure - - - 4,176,280 Capital outlay 862,186 - - 1,859,389 Debt service:
Principal - - - 835,391 Interest and fiscal charges - - - 155,706 Total ex
penditures 862,186 - - 9,438,069
REVENUES OVER
(UNDER) EXPENDITURES 580,718 (1,630) (657) (279,122) OTHER FINANCING SOURCES:
Transfers in - - - 1,873,484 Total other financing sources - - - 1,873,484 CHANGES IN FUND BALANCES 580,718 (1,630) (657) 1,594,362 FUND BALANCES (DEFICIT):
Beginning of year 734,925 134,281 54,196 5,078,615 End of yea
r 1,315,643$ 132,651 $ 53,539$ 6,672,977$ (Concluded)
For the Year Ended June 30, 2022
City of National City
Capital Projects
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
121Page 908 of 1017
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Taxes 852,770 $ 852,770 $ 923,627 $ 70,857 $ Intergovernmental - - 4,822 4,822 Total revenues 852,770 852,770 928,449 75,679 EXPENDITURES:
Current:
Culture and leisure 1,756,506 1,840,431 1,808,229 32,202 Total expenditures 1,756,506 1,840,431 1,808,229 32,202
REVENUES OVER
(UNDER) EXPENDITURES (903,736) (987,661) (879,780) 107,881 OTHER FINANCING SOURCES:
Transfers in - - 903,737 903,737 Total other financin
g sources - - 903,737 903,737 CHANGE IN FUND BALANCE (903,736)$ (987,661)$ 23,957 1,011,618$ FUND BALANCE:
Beginning of year 586,205
End of year 610,162$
For the Year Ended June 30, 2022
Library Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
122Page 909 of 1017
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Taxes 993,683 $ 993,683 $ 1,076,260 $ 82,577 $ Intergovernmental - - 5,619 5,619 Total revenues 993,683 993,683 1,081,879 88,196 EXPENDITURES:
Current:
Health 500 500 - 500 Culture and leisure 1,618,209 1,661,187 1,403,124 258,063 Debt Service:
Interest and fiscal charges 45,700 45,700 45,700 - Total expenditures 1,664,409 1,707,387 1,448,824 258,563
REVENUES OVER
(UNDER) EXPENDITURES (670,726) (713,704) (366,945) 346,759 OTHER FINANCING SOURCES:
Transfers in - - 430,963 430,963 Total other financin
g sources - - 430,963 430,963 CHANGE IN FUND BALANCE (670,726)$ (713,704)$ 64,018 777,722$ FUND BALANCE:
Beginning of year 2,744
End of year 66,762$
For the Year Ended June 30, 2022
Parks Maintenance Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
123Page 910 of 1017
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Taxes 136,000 $ 136,000 $ 307,039 $ 171,039 $ Other revenues 20,000 20,000 11,531 (8,469) Total revenues 156,000 156,000 318,570 162,570 EXPENDITURES:
Current:
General Government - 17,379 - (17,379) Culture and leisure 51,400 51,400 40,948 10,452 Capital outlay - 5,975 - 5,975 Total expenditures 51,400 74,754 40,948 33,806 CHANGE IN FUND BALANCE 104,600$ 81,246 $ 277,622 196,376 $ FUND BALANCE:
Beginning of year 618,260
End of yea
r 895,882$
For the Year Ended June 30, 2022
Library Capital Outlay Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
124Page 911 of 1017
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Taxes 2,511,939 $ 2,511,939 $ 2,752,580 $ 240,641 $ Use of money and property 45,662 45,662 (13,622) (59,284) Other revenues - - 811 811 Total revenues 2,557,601 2,557,601 2,739,769 182,168 EXPENDITURES:
Current:
Transportation 1,562,272 1,838,738 1,684,411 154,327 Capital outlay 1,218,000 2,803,726 981,084 1,822,642 Total ex
penditures 2,780,272 4,642,464 2,665,495 1,976,969 CHANGE IN FUND BALANCE (222,671)$ (2,084,863) $ 74,274 2,159,137 $ FUND BALANCE:
Beginning of year 1,128,840
End of year 1,203,114$
For the Year Ended June 30, 2022
Gas Tax Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
125Page 912 of 1017
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 733,391 $ 733,391 $ 1,491,072 $ 757,681 $ Other revenues - - 3,320 3,320 Total revenues 733,391 733,391 1,494,392 761,001 EXPENDITURES:
Current:
Community development 406,181 957,440 406,708 550,732 Culture and leisure 13,750 13,750 5,546 8,204 Capital outlay 515,000 - - - Debt service:
Principal 520,000 520,000 535,391 (15,391) Interest and fiscal charges 36,893 36,893 21,501 15,392 Total ex
penditures 1,491,824 1,528,083 969,146 558,937 CHANGE IN FUND BALANCE (758,433)$ (794,692) $ 537,389 1,332,081 $ FUND BALANCE (DEFICIT):
Beginning of year (747,514)
End of year (210,125)$
For the Year Ended June 30, 2022
Community Development Block Grant (CDBG) Special Revenue Fund Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
126Page 913 of 1017
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Use of money and property - $ - $ 12,902$ 12,902 $ Intergovernmental 328,323 328,323 396,007 67,684 Other revenues - - 20,382 20,382 Total revenues 328,323 328,323 429,291 100,968 EXPENDITURES:
Current:
Community development 71,929 563,024 251,183 311,841 Culture and leisure - 323,129 - 323,129 Total ex
penditures 71,929 886,153 251,183 634,970 CHANGE IN FUND BALANCE 256,394$ (557,830) $ 178,108 735,938 $ FUND BALANCE:
Beginning of year 1,240,928
End of year 1,419,036$
For the Year Ended June 30, 2022
HOME Program Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
127Page 914 of 1017
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Fines and forfeitures - $ - $ 2,672$ 2,672 $ Use of money and property - - (2,715) (2,715) Total revenues - - (43) (43) EXPENDITURES:
Current:
Public safety - 3,000 9,612 (6,612) Capital outlay - 20,494 16,119 (4,375) Total ex
penditures - 23,494 25,731 (2,237) CHANGE IN FUND BALANCE -$ (23,494)$ (25,774) (2,280) $ FUND BALANCE:
Beginning of year 231,802
End of year 206,028$
For the Year Ended June 30, 2022
Asset Forfeiture Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
128Page 915 of 1017
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 340,898 $ 340,898 $ 333,159 $ (7,739) $ Other revenues 72,600 72,600 64,632 (7,968) Total revenues 413,498 413,498 397,791 (15,707) EXPENDITURES:
Current:
Health - - 59,389 (59,389) Culture and leisure 1,044,523 1,059,770 918,433 141,337 Total ex
penditures 1,044,523 1,059,770 977,822 81,948
REVENUES OVER
(UNDER) EXPENDITURES (631,025) (646,272) (580,031) 66,241 OTHER FINANCING SOURCES:
Transfers in - - 526,641 526,641 Total other financin
g sources - - 526,641 526,641 CHANGE IN FUND BALANCE (631,025)$ (646,272)$ (53,390) 592,882$ FUND BALANCE:
Beginning of year 70,785
End of year 17,395$
For the Year Ended June 30, 2022
Nutrition Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
129Page 916 of 1017
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Taxes 385,375 $ 385,375 $ 340,080 $ (45,295) $ Use of Money and Property - - (11,848) (11,848) Total revenues 385,375 385,375 328,232 (57,143) EXPENDITURES:
Debt Service:
Principal 300,000 300,000 300,000 - Interest and fiscal charges 85,375 85,375 88,505 (3,130) Total ex
penditures 385,375 385,375 388,505 (3,130)
REVENUES OVER
(UNDER) EXPENDITURES - - (60,273) (60,273) CHANGE IN FUND BALANCE -$ - $ (60,273) (60,273) $ FUND BALANCE:
Beginning of year 1,023,150
End of yea
r 962,877$
For the Year Ended June 30, 2022
Library Bonds Debt Service Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
130Page 917 of 1017
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis.
Facilities Maintenance Fund - This fund is used to account for the costs of maintaining all City-owned buildings in a clean, safe, workable, and pleasant condition.
Liability Insurance Fund - This fund is used to account for the costs of maintaining the City’s workers’ compensation and liability insurance programs.
Vehicle Replacement Reserve Fund - This fund is used to account for the costs of acquiring City vehicles and related equipment and for building a reserve for their future replacement.
Motor Vehicle Services Fund - This fund is used to account fort the City’s costs of preventative maintenance and repairs for all City vehicles including police, fire, general administrative, park, sewer and public works equipment.
Telecommunications Revolving Fund - This fund is used to account for the costs of maintaining the City’s telecommunications system.
Office Equipment Depreciation Fund - This fund is used to account for the costs to replace City office equipment.
Information Systems Maintenance Fund - This fund is used to account for the costs of maintaining the City’s computer-related information systems.
131Page 918 of 1017
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
ASSETS
Current assets:
Cash and investments 115,363 $ 16,732,602 $ 1,700,329 $ 635,768 $ Accounts receivable - 61,565 - - Prepaid items and deposits - - 37,520 - Total current assets 115,363 16,794,167 1,737,849 635,768 Noncurrent assets:
Restricted cash and investments with fiscal agents 10,334 - - - Capital assets, net 594,735 - 94,218 - Total noncurrent assets 605,069 - 94,218 - Total assets 720,432 16,794,167 1,832,067 635,768
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 417,636 177,559 174,003 - Salaries payable 19,135 2,055 10,011 - Interest payable 5,914 - - - Leases payable - due within one year 151,532 - - - Compensated absences - due within one year 31,140 5,062 38,335 - Claims payable - due within one year - 1,039,029 - - Total current liabilities 625,357 1,223,705 222,349 - Noncurrent liabilities:
Leases payable - due in more than one year 326,372 - - - Claims payable - due within one year - 9,926,971 - - Total noncurrent liabilities 326,372 9,926,971 - - Total liabilities 951,729 11,150,676 222,349 -
NET POSITION
Net investment in capital assets 116,831 - 94,218 - Restricted for debt service 10,334 - - - Unrestricted (deficit) (358,462) 5,643,491 1,515,500 635,768 Total net position (deficit) (231,297)$ 5,643,491 $ 1,609,718 $ 635,768 $ June 30, 2022
All Internal Service Funds
Combining Statement of Net Position
City of National City
132Page 919 of 1017
Tele- Motor Vehicle
communications Vehicle Replacement
Revolving Services Reserve Total
ASSETS
Current assets:
Cash and investments 14,623$ 846,725$ 4,485,961$ 24,531,371$ Accounts receivable - - - 61,565 Prepaid items and deposits - - - 37,520 Total current assets 14,623 846,725 4,485,961 24,630,456 Noncurrent assets:
Restricted cash and investments with fiscal agents - - - 10,334 Capital assets, net - - 4,237,698 4,926,651 Total noncurrent assets - - 4,237,698 4,936,985 Total assets 14,623 846,725 8,723,659 29,567,441
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities - 82,529 246,620 1,098,347 Salaries payable - 7,608 - 38,809 Interest payable - - - 5,914 Leases payable - due within one year - - - 151,532 Compensated absences - due within one year - 35,056 - 109,593 Claims payable - due within one year - - - 1,039,029 Total current liabilities - 125,193 246,620 2,443,224 Noncurrent liabilities:
Leases payable - due in more than one year - - - 326,372 Claims payable - due within one year - - - 9,926,971 Total noncurrent liabilities - - - 10,253,343 Total liabilities - 125,193 246,620 12,696,567
NET POSITION
Net investment in capital assets - - 4,237,698 4,448,747 Restricted for debt service - - - 10,334 Unrestricted (deficit) 14,623 721,532 4,239,341 12,411,793 Total net position (deficit) 14,623$ 721,532 $ 8,477,039 $ 16,870,874 $ City of National City
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2022
133Page 920 of 1017
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
OPERATING REVENUES:
Charges for services 2,796,928 $ 3,896,200 $ 2,425,979 $ - $ Other - 540,165 - - Total operating revenues 2,796,928 4,436,365 2,425,979 - OPERATING EXPENSES:
Operations and administration 1,023,178 2,667,989 738,093 - Maintenance 2,072,600 79,766 1,411,071 - Depreciation 150,749 - 166,198 - Total o
perating expenses 3,246,527 2,747,755 2,315,362 - Operating income (loss) (449,599) 1,688,610 110,617 - NONOPERATING REVENUES (EXPENSES):
Interest expense (26,362) - - - Total nono
perating revenues (expenses) (26,362) - - - Income (loss) before transfers (475,961) 1,688,610 110,617 - TRANSFERS:
Transfers in - - - - Total transfer
s - - - - Changes in net position (475,961) 1,688,610 110,617 - NET POSITION (DEFICIT):
Beginning of year 244,664 3,954,881 1,499,101 635,768 End of yea
r (231,297)$ 5,643,491 $ 1,609,718 $ 635,768 $ For the Year Ended June 30, 2022
All Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position City of National City
134Page 921 of 1017
Tele- Motor Vehicle
communications Vehicle Replacement
Revolving Services Reserve Total
OPERATING REVENUES:
Charges for services -$ 1,185,009$ 1,283,245$ 11,587,361$ Other - - - 540,165 Total operating revenues - 1,185,009 1,283,245 12,127,526 OPERATING EXPENSES:
Operations and administration - 398,270 846,433 5,673,963 Maintenance - 863,031 - 4,426,468 Depreciation - - 734,027 1,050,974 Total o
perating expenses - 1,261,301 1,580,460 11,151,405 Operating income (loss) - (76,292) (297,215) 976,121 NONOPERATING REVENUES (EXPENSES):
Interest expense - - - (26,362) Total nono
perating revenues (expenses) - - - (26,362) Income (loss) before transfers - (76,292) (297,215) 949,759 TRANSFERS:
Transfers in - - 910,829 910,829 Total transfer
s - - 910,829 910,829 Changes in net position - (76,292) 613,614 1,860,588 NET POSITION (DEFICIT):
Beginning of year 14,623 797,824 7,863,425 15,010,286 End of yea
r 14,623$ 721,532 $ 8,477,039 $ 16,870,874 $ City of National City
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) All Internal Service Funds
For the Year Ended June 30, 2022
135Page 922 of 1017
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from other funds 2,796,928 $ 3,896,200 $ 2,425,979 $ - $ Cash payments for goods and services (2,774,361) (3,704,249) (2,225,069) - Other operating revenues - 540,165 - - Net cash provided by (used in)
operating activities 22,567 732,116 200,910 -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Principal paid on capital lease (144,258) - - - Acquisition of capital assets - - - - Interest paid (28,147) - - - Net cash (used in) capital and
related financing activities (172,405) - - -
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Amounts received from (paid to) other funds (187,362) (18,058) (172,356) - Transfers in - - - - Net cash provided by (used in) noncapital
financing activities (187,362) (18,058) (172,356) - Net change in cash and cash equivalents (337,200) 714,058 28,554 - CASH AND CASH EQUIVALENTS:
Beginning of year 462,897 16,018,544 1,671,775 635,768 End of yea
r 125,697$ 16,732,602 $ 1,700,329 $ 635,768 $
RECONCILIATION TO STATEMENT OF
NET POSITION:
Cash and investments 115,363 $ 16,732,602 $ 1,700,329 $ 635,768 $ Restricted cash and investments with fiscal agents 10,334 - - - Total cash and cash equivalents 125,697$ 16,732,602 $ 1,700,329 $ 635,768 $ For the Year Ended June 30, 2022
All Internal Service Funds
Combining Statement of Cash Flows
City of National City
136Page 923 of 1017
Tele- Motor Vehicle
communications Vehicle Replacement
Revolving Services Reserve Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from other funds -$ 1,185,009$ 1,283,245$ 11,587,361$ Cash payments for goods and services - (1,209,853) (738,131) (10,651,663) Other operating revenues - - - 540,165 Net cash provided by (used in)
operating activities - (24,844) 545,114 1,475,863
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Principal paid on capital lease - - - (144,258) Acquisition of capital assets - - - - Interest paid - - - (28,147) Net cash (used in) capital and
related financing activities - - - (172,405)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Amounts received from (paid to) other funds - (96,102) - (473,878) Transfers in - - 910,830 910,830 Net cash provided by (used in) noncapital
financing activities - (96,102) 910,830 436,952 Net change in cash and cash equivalents - (120,946) 1,455,944 1,740,410 CASH AND CASH EQUIVALENTS:
Beginning of year 14,623 967,671 3,030,017 22,801,295 End of yea
r 14,623$ 846,725 $ 4,485,961 $ 24,541,705 $
RECONCILIATION TO STATEMENT OF
NET POSITION:
Cash and investments 14,623 $ 846,725 $ 4,485,961 $ 24,531,371 $ Restricted cash and investments with fiscal agents - - - 10,334 Total cash and cash equivalents 14,623$ 846,725 $ 4,485,961 $ 24,541,705 $ City of National City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2022
137Page 924 of 1017
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Operating income (loss) (449,599)$ 1,688,610$ 110,617$ -$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 150,749 - 166,198 - Changes in operating assets and liabilities:
Accounts payable and accrued liabilities 301,815 20,930 (102,673) - Salaries payable (6,068) (101) (7,356) - Compensated absences 25,670 4,677 34,124 - Claims payable - (982,000) - - Total adjustments 472,166 (956,494) 90,293 - Net cash
provided by (used in)
operating activities 22,567$ 732,116 $ 200,910 $ - $ For the Year Ended June 30, 2022
City of National City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
138Page 925 of 1017
Tele- Motor Equipment
communications Vehicle Replacement
Revolving Services Reserve Total
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Operating income (loss) -$ (76,292)$ (297,215)$ 976,121$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation - - 734,027 1,050,974 Changes in operating assets and liabilities:
Accounts payable and accrued liabilities - 20,089 108,302 348,463 Salaries payable - (2,724) - (16,249) Compensated absences - 34,083 - 98,554 Claims payable - - - (982,000) Total adjustments - 51,448 842,329 499,742 Net cash
provided by (used in)
operating activities -$ (24,844)$ 545,114 $ 1,475,863 $ For the Year Ended June 30, 2022
City of National City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
139Page 926 of 1017
This page intentionally left blank.
BASIC FINANCIAL STATEMENTS
140Page 927 of 1017
STATISTICAL SECTION
141Page 928 of 1017
This page intentionally left blank.
142Page 929 of 1017
CITY OF NATIONAL CITY, CALIFORNIA
STATISTICAL SECTION
JUNE 30, 2020
Financial Trends Page
Net Position by Component 144
Changes in Net Position 146
Fund Balances of Government Funds 150
Changes in Fund Balances of Government Funds 152
Revenue Capacity
Assessed Value and Actual Value of Taxable Property 154 2021/22 Use Category Summary 156
Property Tax Dollars Breakdown Pie Chart 157
Taxable Property Values 159
Taxable Sales by Category 160
Property Tax Levies and Collections 162
Direct and Overlapping Property Tax Rates 164
Principal Property Tax Payers 166
Single Family Residential Full Value Sales 167
Top 25 Sales Tax Producers 169
Debt Capacity
Ratios of Outstanding Debt by Type 170
Direct and Overlapping Debt 172
Net Taxable Assessed Value History 173
Legal Debt Margin Information 174
Pledged Revenue Coverage 176
Demographic and Economic Information
Demographic and Economic Statistics 179
Operating Information
Full-Time Equivalent City Government Employees by Function/Program 180 Operating Indicators by Function/Program 182
Capital Asset Statistics by Function/Program 184
These schedules present information to help readers understand the City's operations and resources.
Statistical Section
Financial Presentations included in the Statistical Section provide data and information on the financial, physical, and economic characteristics of the City of National City. The following schedules cover multiple fiscal years and provide readers with a broader and more complete understanding of the City and its financial affairs and economic condition. They also present detailed information as a context for understanding this year's financial statements, note disclosure, and required supplementary information.
These schedules contain trend information to help readers understand and assess how the City's financial position has changed over time.
These schedules contain information to help readers understand and assess the City's local revenue sources.
These schedules present information to help readers understand and assess the City's debt burden and its ability to service current debt and to issue additional debt in the future.
These schedules present economic and demographic indicators to help readers understand the environment within which the City's financial activities take place. 143Page 930 of 1017
2013 2014 2015 2016 2017
Governmental Activities:
Net Investment in
Capital Assets 99,343,176$ 108,881,192$ 120,377,947$ 134,444,245$ 140,128,868$ Restricted for:
General Services1 - 25,690,372 24,671,923 29,511,338 17,830,592 Community Development 535,026 4,522,562 5,348,413 3,448,959 1,413,792 Public Safety - - - - 1,566,498 Transportation - - - - 2,279,981 Culture and Leisure/General Services - - - - - Housing - - - - 8,450,433 Debt Service 472,988 1,691,931 1,676,222 1,845,117 1,753,076 Capital projects 2,332,408 2,769,086 2,193,169 942,285 840,156 Investment in Section 115 trust
Unrestricted 71,462,265 40,409,653 (34,896,708) (26,157,042) (31,330,173) Total governmental activities net position 174,145,863$ 183,964,796$ 119,370,966$ 144,034,902$ 142,933,223$ Business-type Activities:
Net Investment in
Capital Assets 4,760,761$ 4,725,523$ 4,926,410$ 4,905,110$ 4,995,791$ Restricted
Community Development - - - - - Public Safety - - - - 1,422,433 Transportation - - - - - Culture and Leisure - - - - - Housing - - - - - Debt Service 1,953,838 2,121,988 1,876,125 2,031,385 763,085 Unrestricted 265,456 4,502 98,698 99,478 (13,016) Total business-type activities net position 6,980,055$ 6,852,013$ 6,901,233$ 7,035,973$ 7,168,293$ Primary Government:
Net Investment in
Capital Assets 104,103,937 113,606,715 125,304,357 139,349,355 145,124,659 Restricted 5,294,260 36,795,939 35,765,852 37,779,084 36,320,046 Unrestricted 71,727,721 40,414,155 (34,798,010) (26,057,564) (31,343,189) Total primary government net position 181,125,918$ 190,816,809$ 126,272,199$ 151,070,875$ 150,101,516$ 1 General Services category added in 2014
Source: City of National City Annual Comprehensive Financial Reports or financial statements (accrual basis of accounting)
City of National City
Net Position by Component
Last Ten Fiscal Years
Fiscal Year
144Page 931 of 1017
2018 2019 2020 2021 2022
Governmental Activities:
Net Investment in
Capital Assets 141,748,074$ 147,820,375$ 155,530,504$ 161,450,929$ 161,453,603$ Restricted for:
General Services1 16,441,482 17,345,785 20,040,951 20,231,609 23,905,988 Community Development 283,394 169,573 19,999 20,000 20,000 Public Safety 1,472,665 1,296,186 221,853 231,802 206,028 Transportation 1,985,811 1,157,623 13 1,245,013 13 Culture and Leisure/General Services - - - - - Housing 8,980,034 74,709,334 75,199,504 75,139,133 63,427,755 Debt Service 1,681,688 1,667,147 1,630,317 1,023,150 962,877 Capital projects 721,171 1,743,976 2,039,987 2,336,049 2,775,920 Investment in Section 115 trust 1,749,740 1,749,740 10,813,351 9,526,733 Unrestricted (33,783,858) (41,622,749) (48,893,956) (57,801,974) (41,476,853) Total governmental activities net position 139,530,461$ 206,036,990 $ 207,538,912 $ 214,689,062 $ 220,802,064 $ Business-type Activities:
Net Investment in
Capital Assets 5,003,945 $ - $ - $ - $ - $ Restricted
Community Development - - - - - Public Safety 1,514,475 - - - - Transportation - - - - - Culture and Leisure - - - - - Housing - - - - - Debt Service 818,678 - - - - Unrestricted 22,571 - - - - Total business-type activities net position 7,359,669$ -$ -$ -$ -$ Primary Government:
Net Investment in
Capital Assets 146,752,019 147,820,375 155,530,504 162,195,929 161,453,603 Restricted 33,899,398 99,839,364 100,902,364 111,040,107 100,825,314 Unrestricted (33,761,287) (41,622,749) (48,893,956) (57,801,974) (41,399,785) Total primary government net position 146,890,130$ 206,036,990$ 207,538,912$ 215,434,062$ 220,879,132$ 1 General Services category added in 2014
Source: City of National City Annual Comprehensive Financial Reports or financial statements City of National City
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
145Page 932 of 1017
2013 2014 2015 2016 2017
Expenses:
Governmental Activities:
General government 443,592$ 5,240,947$ 6,299,372$ 6,237,858$ 7,379,307$ Public safety 28,024,676 29,045,583 31,522,488 31,293,361 34,007,632 Transportation 3,061,647 6,315,524 6,737,292 8,605,631 8,925,351 Community development 11,991,339 11,669,866 11,603,528 11,812,563 13,560,523 Health 8,477,778 7,026,857 7,416,697 7,499,719 8,102,830 Culture and leisure 5,784,578 6,712,036 6,349,578 7,188,896 8,129,529 Interest and fiscal charges 633,338 439,367 407,194 308,808 243,832 Depreciation expense (unallocated) 4,423,669 - - - - Total governmental activities expenses 62,840,617$ 66,450,180$ 70,336,149$ 72,946,836$ 80,349,004$ Business-type Activities:
Transportation Development Act1 -$ - $ -$ -$ -$ Community development commission - - - - - Kimball Towers 1,089,698 1,356,385 1,251,377 1,160,095 1,166,521 Morgan Towers 1,177,596 1,130,218 1,078,546 1,113,885 1,141,607 Total business-type activities expenses 2,267,294$ 2,486,603$ 2,329,923$ 2,273,980$ 2,308,128$ Total primary government expenses 65,107,911$ 68,936,783$ 72,666,072$ 75,220,816$ 82,657,132$ Program Revenue:
Government Activities:
Charges for services:
General government 1,258,710$ 2,371,861$ 3,101,468$ 5,081,812$ 2,697,690$ Public safety 3,018,064 3,150,630 3,807,824 2,681,493 2,704,952 Transportation 1,549,092 2,195,535 1,863,599 1,344,988 1,218,156 Community development 2,079,578 2,994,274 3,260,501 1,908,755 2,105,289 Health 7,414,151 7,534,320 9,522,136 8,363,190 8,819,322 Culture and leisure 246,880 199,493 353,740 306,675 631,597 Operating grants and contributions 14,732,996 15,818,335 12,508,517 13,295,661 15,280,776 Capital grants and contributions 1,006,059 6,284,789 11,399,349 7,299,398 3,878,546 Total governmental activities program revenue 31,305,530$ 40,549,237$ 45,817,134$ 40,281,972$ 37,336,328$ Business-type Activities:
Charges for services:
Community development commission -$ -$ -$ -$ -$ Kimball Towers 1,073,082 1,096,559 1,101,514 1,124,578 1,130,543 Mor
gan Towers 1,241,253 1,244,129 1,260,181 1,266,441 1,289,180 Operating grants and contributions - - - - - Capital grants and contributions - - - - - Total business-type activities program revenue 2,314,335$ 2,340,688$ 2,361,695$ 2,391,019$ 2,419,723$ Total primary government program revenue 33,619,865$ 42,889,925$ 48,178,829$ 42,672,991$ 39,756,051$ Net Revenues (Expenses):
Governmental activities (31,535,087) (25,900,943) (24,519,015) (32,664,864) (43,012,676) Business-type activities 47,041 (145,915) 31,772 117,039 111,595 Total Net Revenues (Expenses) (31,488,046)$ (26,046,858)$ (24,487,243)$ (32,547,825)$ (42,901,081)$ Source: City of National City Annual Comprehensive Financial Reports or financial statements (accrual basis of accounting)
City of National City
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
146Page 933 of 1017
2018 2019 2020 2021 2022
Expenses:
Governmental Activities:
General government 15,307,497$ 14,474,787$ 13,745,988$ 10,868,545$ 20,793,460$ Public safety 39,597,743 41,216,052 45,669,420 46,808,349 38,710,643 Transportation 8,076,078 8,479,861 8,262,579 8,503,284 8,358,045 Community development 12,884,161 13,521,091 15,463,076 16,056,965 16,113,804 Health 7,467,338 8,160,870 8,229,336 8,167,924 7,726,217 Culture and leisure 8,521,220 7,686,697 7,617,459 8,795,715 8,428,049 Interest and fiscal charges 414,353 380,597 398,181 528,873 2,298,786 Depreciation expense (unallocated) - - Total governmental activities expenses 92,268,390$ 93,919,955$ 99,386,039$ 99,729,655$ 102,429,004$ Business-type Activities:
Transportation Development Act1 -$ - $ -$ -$ -$ Community development commission - - - - - Kimball Towers 1,187,232 945,180
Morgan Towers 1,102,742 787,266
Total business-type activities expenses 2,289,974$ 1,732,446$ -$ -$ -$ Total primary government expenses 94,558,364$ 95,652,401$ 99,386,039$ 99,729,655$ 102,429,004$ Program Revenue:
Government Activities:
Charges for services:
General government 2,543,350$ 1,811,719$ 1,633,484$ 2,035,702$ 6,476,152$ Public safety 3,393,625 2,911,464 4,588,977 3,833,783 3,455,987 Transportation 1,640,930 2,556,059 2,559,252 2,559,581 2,796,202 Community development 3,320,354 4,461,949 5,390,111 3,885,598 3,235,575 Health 8,624,774 8,551,905 11,046,138 10,557,839 11,814,786 Culture and leisure 676,015 477,370 613,722 484,207 577,948 Operating grants and contributions 14,306,662 14,908,491 16,658,135 17,685,441 18,533,739 Capital grants and contributions 6,414,610 4,201,520 4,465,126 6,109,734 3,514,394 Total governmental activities program revenue 40,920,320$ 39,880,477$ 46,954,945$ 47,151,885$ 50,404,783$ Business-type Activities:
Charges for services:
Community development commission -$ -$ -$ -$ -$ Kimball Towers 1,127,607 1,256,346 - - - Morgan Towers 1,329,610 1,017,766 - - - O
perating grants and contributions - - - - - Capital grants and contributions - - - - - Total business-type activities program revenue 2,457,217$ 2,274,112$ -$ -$ -$ Total primary government program revenue 43,377,537$ 42,154,589$ 46,954,945$ 47,151,885$ 50,404,783$ Net Revenues (Expenses):
Governmental activities (51,348,070) (54,039,478) (52,431,094) (52,577,770) (52,024,221) Business-type activities 167,243 541,666 - - - Total Net Revenues (Expenses) (51,180,827)$ (53,497,812)$ (52,431,094)$ (52,577,770)$ (52,024,221)$ Source: City of National City Annual Comprehensive Financial Reports or financial statements (accrual basis of accounting)
Fiscal Year
City of National City
Changes in Net Position (Continued)
Last Ten Fiscal Years
147Page 934 of 1017
2013 2014 2015 2016 2017
General Revenue and Other Changes in Net Position:
Governmental Activities:
Taxes:
Property taxes 4,724,959$ 9,908,109$ 10,301,592$ 10,293,634$ 11,948,882$ Sales taxes 23,757,635 25,586,661 27,095,666 29,170,512 29,284,869 Franchise taxes 1,602,891 1,718,023 1,902,082 1,922,723 1,856,039 Motor vehicle license - 27,056 - - - Transient occupancy taxes 5,154,530 1,082,339 1,383,793 1,611,788 1,597,957 Utilities tax 815,136 825,388 818,820 867,488 886,455 Investment earnings 1,873,896 459,019 304,655 553,184 361,077 Other miscellaneous revenues - - - 1,864 - Rent - - - - - Transfers - - - - - Gain (loss) on sale of assets 151,879 (268,224) - - - Transfer to Successor Agency - - - (826,577) - Special items - - - 13,734,184 - Total governmental activities 38,080,926$ 39,338,371$ 41,806,608$ 57,328,800$ 45,935,279$ Business-type Activities:
Investment earnings 3,685$ 2,520$ 2,579$ 3,678$ 5,621$ Other misc 14,776 15,353 14,869 14,023 15,464 Rent - - - - - Transfers - - - - - Total business-type activities 18,461$ 17,873$ 17,448$ 17,701$ 21,085$ Total primary government 38,099,387$ 39,356,244$ 41,824,056$ 57,346,501$ 45,956,364$ Changes in Net Position:
Governmental activities 6,545,839 13,437,428 17,287,593 24,663,936 2,922,603 Business-type activities 65,502 (128,042) 49,220 134,740 132,320 Total Primary Government 6,611,341$ 13,309,386$ 17,336,813$ 24,798,676$ 3,054,923$ Source: City of National City Annual Comprehensive Financial Reports or financial statements (accrual basis of accounting)
Fiscal Year
City of National City
Changes in Net Position (Continued)
Last Ten Fiscal Years
148Page 935 of 1017
2018 2019 2020 2021 2022
General Revenue and Other Changes in Net Position:
Governmental Activities:
Taxes:
Property taxes 12,721,058$ 14,340,418$ 15,975,053$ 16,266,505$ 16,753,096$ Sales taxes 30,084,675 33,196,667 31,268,711 36,415,641 40,777,746 Franchise taxes 1,910,053 1,966,728 2,330,697 2,104,436 2,131,159 Motor vehicle license - -
Transient occupancy taxes 1,660,800 1,774,843 1,522,714 1,600,549 1,862,718 Utilities tax 711,635 708,451 678,663 737,435 793,653 Investment earnings 836,038 2,297,242 2,344,528 2,339,978 (3,007,949) Other miscellaneous revenues 21,049 45,017 65,010 156,976 97,010 Rent - - - - - Transfers - - - - - Gain (loss) on sale of assets - - - - - Transfer to Successor Agency - - - - - Special items - - - - - Total governmental activities 47,945,308$ 54,329,366$ 54,185,376$ 59,621,520$ 59,407,433$ Business-type Activities:
Investment earnings 9,390$ 10,038$ -$ -$ -$ Other misc 14,743 11,378 - - - Rent - - - - - Transfers - - - - - Total business-type activities 24,133$ 21,416$ -$ -$ -$ Total primary government 47,969,441$ 54,350,782$ 54,185,376$ 59,621,520$ 59,407,433$ Changes in Net Position:
Governmental activities (3,402,762) 66,506,529 1,501,832 7,043,751 7,383,212 Business-type activities 191,376 (7,359,669) - - - Total Primary Government (3,211,386)$ 59,146,860$ 1,501,832$ 7,043,751$ 7,383,212$ Source: City of National City Annual Comprehensive Financial Reports or financial statements Fiscal Year
City of National City
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
149Page 936 of 1017
2013 2014 2015 2016 2017
General Fund:
Nonspendable 10,162$ 4,952,830$ 4,963,916$ 10,766,098$ 9,963,816$ Restricted 707,262 611,780 590,998 754,913 616,253 Committed 9,085,066 9,085,066 9,085,066 11,585,066 11,585,066 Assigned 6,787,396 15,042,191 16,065,736 14,792,381 14,325,683 Unassigned 6,995,075 7,797,176 10,266,365 12,166,732 11,903,272 Total general fund 23,584,961$ 37,489,043$ 40,972,081$ 50,065,190$ 48,394,090$ All Other Governmental Funds:
Nonspendable 8,164,235 $ 7,926,759$ 7,927,027$ -$ 1,636,570$ Restricted 33,122,400 31,713,774 31,005,844 36,333,305 32,015,860 Committed - - - - - Assigned 740,177 733,384 706,558 - - Unassigned 24,729 (8,165,223) (5,368,938) (821,959) (985,588) Total all other governmental funds 42,051,541$ 32,208,694$ 34,270,491$ 35,511,346$ 32,666,842$ Source: City of National City Annual Comprehensive Financial Reports or financial statements (modified accrual basis of accounting)
Fiscal Year
City of National City
Fund Balances of Government Funds
Last Ten Fiscal Years
150Page 937 of 1017
2018 2019 2020 2021 2022
General Fund:
Nonspendable 9,966,729$ 5,010,267$ 3,926,499$ 3,964,435$ 3,966,629$ Restricted 555,168 2,304,908 2,304,908 10,833,351 9,546,733 Committed 11,085,066 15,150,517 15,150,517 14,945,000 15,680,000 Assigned 15,772,642 12,865,120 12,865,120 7,193,969 8,400,718 Unassigned 12,731,293 13,673,543 14,433,312 13,956,296 19,469,523 Total general fund 50,110,898$ 49,004,355$ 48,680,356$ 50,893,051$ 57,063,603$ All Other Governmental Funds:
Nonspendable 129,469 $ 25,805$ -$ 1,270,805$ 1,270,805$ Restricted 30,928,607 97,534,456 98,597,366 98,961,756 91,278,581 Committed - - - - - Assigned - - - - - Unassigned (1,910,674) (21,761) (45,744) (747,514) (210,125) Total all other governmental funds 29,147,402$ 97,538,500$ 98,551,622$ 99,485,047$ 92,339,261$ Source: City of National City Annual Comprehensive Financial Reports or financial statements Fiscal Year
City of National City
Fund Balances of Government Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
151Page 938 of 1017
2013 2014 2015 2016 2017
Revenues:
Taxes 38,837,279$ 41,386,311$ 43,573,589$ 45,474,959$ 47,058,901$ Licenses and permits 1,225,571 1,099,929 1,567,617 1,122,139 1,280,675 Fines and forfeitures 1,044,422 1,111,961 885,722 646,370 642,972 Use of money and property 768,612 1,122,149 1,073,543 1,417,606 1,035,112 Intergovernmental 15,803,886 23,571,850 26,791,254 21,381,584 20,051,795 Charges for services 10,080,029 9,531,741 10,024,879 10,734,789 11,721,905 Other revenues 757,913 1,651,370 4,387,660 3,925,718 2,552,556 Total revenues 68,517,712$ 79,475,311$ 88,304,264$ 84,703,165$ 84,343,916$ Expenditures:
Current:
General government 5,349,464$ 5,062,227$ 5,403,805$ 6,986,812$ 5,673,456$ Public safety 28,156,246 27,687,841 29,100,717 31,785,904 34,754,008 Transportation 2,957,941 3,673,470 3,941,747 4,546,976 4,687,611 Community development 10,529,246 11,235,322 11,173,792 11,752,502 12,909,844 Health 8,559,588 6,994,103 7,179,865 7,587,801 8,227,149 Culture and leisure 5,797,227 6,057,037 5,306,518 6,239,067 7,351,974 Capital outlay 3,749,471 20,361,948 17,176,753 16,737,745 12,938,379 Debt service:
Principal 1,068,801 1,376,871 1,142,186 1,150,824 1,310,893 Interest and fiscal charges 547,580 477,061 427,209 364,723 243,329 Total expenditures 66,715,564$ 82,925,880$ 80,852,592$ 87,152,354$ 88,096,643$ Excess (deficiency) of revenues
over (under) expenditures 1,802,148 (3,450,569) 7,451,672 (2,449,189) (3,752,727) Other Financing Sources (Uses)
Issuance of long-term debt 4,885,000$ -$ 554,604$ -$ -$ Premium on debt issuance 25,678 - - - - Payment to bond escrow agent (4,760,000) - - - - Original discount on issuance (150,678) - - - - Costs of debt issuance - - - - - Proceeds from sale of property - 7,052,194 - - 58,474 Proceeds from lease - - - - - Proceeds from sale of land - - - - - Gain on sale of land held for resale - - - - 65,966 Pass-through payments to other agencies - (705,115) Transfers in 3,085,535 5,131,249 1,765,336 4,903,988 2,932,166 Transfers out (2,514,688) (4,671,639) (4,277,182) (3,078,442) (3,114,366) Transfers to Successor Agency - - - (826,577) - Total other financing sources (uses) 570,847$ 7,511,804$ (1,957,242)$ 998,969$ (762,875)$ Extraordinary/Special Items - - - 11,784,182 - Net change in fund balances 2,372,995$ 4,061,235$ 5,494,430$ 10,333,962$ (4,515,602)$ Debt services as a percentage of
noncapital expenditures 2.57% 2.96% 2.46% 2.15% 2.07%
Source: City of National City Annual Comprehensive Financial Reports or financial statements Fiscal Year
(modified accrual basis of accounting)
City of National City
Changes in Fund Balances of Government Funds
Last Ten Fiscal Years
152Page 939 of 1017
2018 2019 2020 2021 2022
Revenues:
Taxes 48,968,671$ 53,534,414$ 53,675,932$ 59,011,168$ 63,926,579$ Licenses and permits 1,879,379 1,527,378 2,730,712 1,118,924 1,565,077 Fines and forfeitures 663,205 3,006,250 3,008,937 520,640 1,199,213 Use of money and property 1,393,733 3,125,731 3,623,029 3,628,887 129,417 Intergovernmental 22,671,850 20,790,012 22,985,841 26,719,202 27,831,520 Charges for services 11,010,813 10,630,010 12,927,695 13,650,614 14,870,478 Other revenues 2,675,725 1,045,184 2,241,100 1,417,104 1,002,913 Total revenues 89,263,376$ 93,658,979$ 101,193,246$ 106,066,539$ 110,525,197$ Expenditures:
Current:
General government 8,755,798$ 10,353,580$ 10,719,672$ 11,352,261$ 38,261,566$ Public safety 37,535,638 37,352,792 39,308,683 42,319,159 98,713,134 Transportation 4,731,634 5,068,343 4,746,320 5,050,345 4,933,856 Community development 16,801,816 13,557,554 14,192,654 16,081,378 16,107,479 Health 7,544,106 8,158,082 8,168,245 8,227,352 7,874,798 Culture and leisure 4,186,345 7,066,530 7,029,297 8,216,927 7,880,999 Capital outlay 14,560,697 9,059,110 13,561,929 9,245,317 18,407,406 Debt service:
Principal 1,552,162 1,060,732 1,077,616 1,066,163 1,128,518 Interest and fiscal charges 387,857 385,960 419,868 534,570 539,829 Total expenditures 96,056,053$ 92,062,683$ 99,224,284$ 102,093,472$ 193,847,585$ Excess (deficiency) of revenues
over (under) expenditures (6,792,677) 1,596,296 1,968,962 3,973,067 (83,322,388) Other Financing Sources (Uses)
Issuance of long-term debt 5,523,602$ -$ -$ -$ 83,895,000$ Premium on debt issuance - - - - - Payment to bond escrow agent - - - - - Original discount on issuance - - - - (142,838) Costs of debt issuance - - - - (492,162) Proceeds from sale of property - - (589,700) 3,890 - Proceeds from lease - - - - - Proceeds from sale of land - - - - - Gain on sale of land held for resale -
Pass-through payments to other agencies - (631,285) - (2,017) Transfers in 6,913,968 73,514,649 2,045,690 2,623,099 2,529,757 Transfers out (7,447,525) (7,826,390) (2,104,544) (3,336,851) (3,440,586) Transfers to Successor Agency - - - - - Total other financing sources (uses) 4,990,045$ 65,688,259$ (1,279,839)$ (709,862)$ 82,347,154$ Extraordinary/Special Items -
Net change in fund balances (1,802,632)$ 67,284,555$ 689,123$ 3,263,205$ (975,234)$ Debt services as a percentage of
noncapital expenditures 2.38% 1.74% 1.75% 1.72% 0.95%
Source: City of National City Annual Comprehensive Financial Reports or financial statements Fiscal Year
City of National City
Changes in Fund Balances of Government Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
153Page 940 of 1017
Category 2013 2014 2015 2016 2017
Secured:
Residential Property 1,503,553,951$ 1,547,773,659$ 1,665,406,317$ 1,717,835,128$ 1,805,981,573$ Commercial Property 915,142,395 971,070,608 992,982,224 1,026,863,991 1,082,223,930 Industrial Property 370,755,962 372,617,155 360,527,549 345,186,211 351,325,363 Institutional Property 45,384,698 46,107,183 46,316,498 47,648,063 48,280,512 Irrigated Property - - - - - Recreational Property 29,056,094 25,828,782 25,827,429 24,799,504 28,998,288 Unknown - - - - - Vacant Land 57,090,009 61,320,039 60,685,749 66,017,188 66,452,827 Dry Farm - - - - - Total Secured 2,920,983,109$ 3,024,717,426$ 3,151,745,766$ 3,228,350,085$ 3,383,262,493$ Unsecured 183,790,343 224,847,953 197,869,900 208,192,396 200,687,180 Cross Reference - - - - - SBE Nonunitary 5,195,618 5,224,473 5,224,473 4,088,740 4,088,640 Total Taxable Assessed Value 3,109,969,070$ 3,254,789,852$ 3,354,840,139$ 3,440,631,221$ 3,588,038,313$ Total Direct Tax Rate 0.54683 0.24559 0.20747 0.20813 0.19685 Note: Exempt values not included in totals.
Source: HdL, San Diego County Assessor 2021/22 Combined Tax Rolls Fiscal Year
City of National City
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
154Page 941 of 1017
Category 2018 2019 2020 2021 2022
Secured:
Residential Property 2,005,909,205$ 2,124,432,627$ 2,247,520,548$ 2,566,312,533$ 2,580,200,605$ Commercial Property 1,141,618,921 1,177,390,190 1,235,674,912 1,301,454,818 1,274,713,181 Industrial Property 366,288,263 370,233,052 293,358,933 302,185,033 320,252,647 Institutional Property 50,276,110 50,172,874 51,166,295 106,965,729 53,238,122 Irrigated Property - - - - - Recreational Property 30,262,982 30,008,253 6,115,328 6,794,156 7,224,152 Unknown - - - - - Vacant Land 69,545,186 72,360,079 74,595,548 92,551,033 91,897,780 Dry Farm - - - - - Total Secured 3,663,900,667$ 3,824,597,075$ 3,908,431,564$ 4,376,263,302$ 4,703,355,402$ Unsecured 209,840,073 228,175,189 233,956,577 249,918,298 203,990,721 Cross Reference - - 132,191,188 214,750,927 167,408,698 SBE Nonunitary 4,088,640 4,429,496 4,429,496 4,429,496 4,429,496 Total Taxable Assessed Value 3,877,829,380$ 4,057,201,760$ 4,279,008,825$ 4,845,362,023$ 4,971,595,486$ Total Direct Tax Rate 0.19587 0.19462 0.19792 0.19792 0.19630 Note: Exempt values not included in totals.
Source: HdL, San Diego County Assessor 2021/22 Combined Tax Rolls Fiscal Year
City of National City
Assessed Value and Actual Value of Taxable Property (Continued) Last Ten Fiscal Years
155Page 942 of 1017
City of National City
2021/22 Use Category Summary
(Percentages)
Source: San Diego County Assessor 2013/14 Combined Tax Rolls 156Page 943 of 1017
Source: HdL, San Diego County Assessor 2021/22 Annual Tax Increment Tables City of National City
Property Tax Dollar Breakdown
(Percentages)
0.02523
0.0476
0.1355
0.1493
0.1766
0.1772
0.2886
Property Tax Breakdown
General Elementary National
National City General Fund
High Sweetwater Union
County General
Educational Revenue Augmentation Fund
National City General Fund
Other
157Page 944 of 1017
This page intentionally left blank.
158Page 945 of 1017
Secured Nonunitary Utilities Unsecured
Parcels 9,715 7 1,437
TRAs 39 3 19
Values
Land 2,065,805,305 $ 4,429,496$ -$ Improvements 2,687,484,829 - 80,020,327 Personal Property 1,887,674 - 131,967,855 Fixtures - - - Aircraft - - - Total Value 4,755,177,808$ 4,429,496$ 211,988,182$ Exemptions
Real Estate 260,242,623$ -$ 913,434$ Personal Property - - 7,084,027 Fixture - - - Aircraft - - - Homeowners 27,844,998 - 181,280 Total Exemptions 288,087,621$ -$ 8,178,741$ Total Net Value 4,467,090,187$ 4,429,496$ 203,809,441$ Combined Values Total
Total Values 4,971,595,486$
Total Exemptions 296,266,362$
Net Total Values 4,675,329,124$
Net Aircraft Values -$
Notes: Homeowner Exemptions are not included in Total Exemptions.
Totals do not Include Aircraft Values or Exemptions.
Source: HdL, San Diego County Assessor 2021/22 Combined Tax Rolls City of National City
2021/22 Roll Summary
Taxable Property Values
159Page 946 of 1017
2012 2013 2014 2015 2016
Apparel Stores 133,160 $ 133,242 $ 134,000 $ 134,821 $ 143,054 $ General Merchandise 163,078 164,508 170,253 176,099 176,345 Food Stores 22,033 21,288 21,765 20,902 20,894 Eating and Drinking Places 133,597 139,756 149,098 163,289 175,979 Building Materials 29,483 31,812 37,814 55,846 67,098 Auto Dealers and Supplies 505,241 547,221 579,153 626,680 635,242 Service Stations 85,842 77,680 79,502 71,620 65,266 Other Retail Stores 142,972 152,666 165,052 172,337 175,744 All Other Outlets 255,744 289,955 299,613 321,120 349,438 Total 1,471,150 $ 1,558,128 $ 1,636,250 $ 1,742,714 $ 1,809,060 $ Data for 2022 not available as of the date of issuance of this report.
Source: State of California Board of Equalization and The HdL Companies City of National City
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
Calendar Year
Notes: Due to confidentiality requirements, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. 160Page 947 of 1017
2017 2018 2019 2020 2021
Apparel Stores 146,205$ 150,030$ 149,017$ 91,964$ 162,075$ General Merchandise 173,652 178,412 182,062 149,628 188,801 Food Stores 20,619 20,914 21,129 23,738 25,160 Eating and Drinking Places 181,540 198,204 211,898 182,171 236,302 Building Materials 90,491 98,577 78,449 92,363 123,582 Auto Dealers and Supplies 608,019 602,370 629,203 602,536 738,260 Service Stations 69,443 84,634 100,148 70,752 97,047 Other Retail Stores 176,398 172,842 164,994 144,412 184,575 All Other Outlets 360,770 368,099 424,315 534,711 570,338 Total 1,827,137$ 1,874,082$ 1,961,215$ 1,892,275$ 2,326,140$ Data for 2022 not available as of the date of issuance of this report.
Source: State of California Board of Equalization and The HdL Companies City of National City
Taxable Sales by Category (Continued)
Last Ten Calendar Years
(in thousands of dollars)
Calendar Year
Notes: Due to confidentiality requirements, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. 161Page 948 of 1017
2013 2014 2015 2016 2017
Current Year Tax Levy 3,348,632$ 3,099,715$ 3,240,544$ 3,205,191$ 3,335,753$ Current Tax Collections 3,330,941 3,087,464 3,227,793 3,195,983 3,333,476 Percent of Levy Collected 99.47% 99.60% 99.61% 99.71% 99.93% Delinquent Tax Receivable 19,089 19,203 19,758 17,764 16,226 Delinquent Tax Collections 1,781 1,542 1,312 1,564 1,465 Total Tax Collections 3,332,722$ 3,089,006$ 3,229,105$ 3,197,547$ 3,334,941$ Percent of Total Tax
Collections To Tax Levy 99.52% 99.65% 99.65% 99.76% 99.98% Outstanding Delinquent Taxes 34,999$ 29,912$ 31,197$ 25,408$ 17,038$ Percent of Delinquent Taxes
To Tax Levy 1.05% 0.96% 0.96% 0.79% 0.51%
Source: San Diego County Property Tax Services. Tax/Revenue Accountability Report No. 12 Property Tax and Levy Report
Fiscal Year
City of National City
Property Tax Levies and Collections
Last Ten Fiscal Years
162Page 949 of 1017
2018 2019 2020 2021 2022
Current Year Tax Levy 3,619,238$ 3,687,359$ 3,896,676$ 4,096,739$ 4,233,369$ Current Tax Collections 3,601,115 3,667,444 3,890,504 4,082,104 4,221,118 Percent of Levy Collected 99.50% 99.46% 99.84% 99.64% 99.71% Delinquent Tax Receivable 10,737 16,840 16,741 16,816 16,976 Delinquent Tax Collections 2,008 1,948 1,868 2,650 2,256 Total Tax Collections 3,603,123$ 3,669,393$ 3,892,372$ 4,084,754$ 4,223,374$ Percent of Total Tax
Collections To Tax Levy 99.55% 99.51% 99.89% 99.71% 99.76% Outstanding Delinquent Taxes 26,852$ 34,807$ 21,044$ 28,801$ 26,971$ Percent of Delinquent Taxes
To Tax Levy 0.74% 0.94% 0.54% 0.70% 0.64%
Source: San Diego County Property Tax Services. Tax/Revenue Accountability Report No. 12 Property Tax and Levy Report
Fiscal Year
City of National City
Property Tax Levies and Collections (Continued)
Last Ten Fiscal Years
163Page 950 of 1017
Agency 2013 2014 2015 2016 2017
Basic Levy¹ 1.00000 1.00000 1.00000 1.00000 1.00000
Chula Vista Elementary 0.02526 0.04631 0.04753 0.04301 0.04323 Gen Bond National City-Prop N 11/04/14 Ser 2014A 0.00000 0.00000 0.00000 0.03055 0.02867 Gen Bond National City-Prop N 11/04/14 Ser 2014B 0.00000 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 National City Gen. Obligation Bonds 2002 Series A 0.01320 0.01190 0.00960 0.00920 0.00880 San Diego Community College Bond 0.03636 0.04760 0.04381 0.03939 0.03912 Southwestern Community College 0.03753 0.03675 0.03582 0.03961 0.03856 Sweetwater High Bond 0.05862 0.05823 0.05407 0.05169 0.05162 Total Direct & Overlapping² Tax Rates 1.17447 1.20429 1.19433 1.21695 1.21350 City's Share of 1% Levy Per Prop 13³ 0.17720 0.17720 0.17720 0.17720 0.17720 General Obligation Debt Rate 0.01320 0.01190 0.00960 0.00920 0.00880 Voter Approved City Debt Rate 0.01320 0.01190 0.00960 0.00920 0.00880 Redevelopment Authority Rate4 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rate5 0.54683 0.24559 0.20747 0.20813 0.19685 Source: HdL, San Diego County Assessor 2011/12-2020/21 Tax Rate Tables City of National City
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate Per $100 of Taxable Value)
Fiscal Year
¹ In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 5 Total Direct Rate is the weighted average of all individual direct rates applied by the City/agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purpose of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue. ² Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
³ City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where knowns. 4 Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The Approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. 164Page 951 of 1017
Agency 2018 2019 2020 2021 2022
Basic Levy¹ 1.00000 1.00000 1.00000 1.00000 1.00000
Chula Vista Elementary 0.03594 0.03917 0.03743 0.06455 0.06279 Gen Bond National City-Prop N 11/04/14 Ser 2014A 0.02629 0.01449 0.00000 0.00000 0.05092 Gen Bond National City-Prop N 11/04/14 Ser 2014B 0.00000 0.01022 0.00000 0.00000 0.00350 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00000 National City Gen. Obligation Bonds 2002 Series A 0.00790 0.00730 0.03129 0.03064 0.00000 San Diego Community College Bond 0.03447 0.03941 0.03801 0.03700 0.03699 Southwestern Community College 0.04981 0.04671 0.04482 0.02792 0.04854 Sweetwater High Bond 0.05156 0.05283 0.05159 0.04880 0.04611 Total Direct & Overlapping² Tax Rates 1.20947 1.21363 1.20664 1.21241 1.24885 City's Share of 1% Levy Per Prop 13³ 0.17720 0.17720 0.17720 0.17720 0.17720 General Obligation Debt Rate 0.00880 0.00730 0.00880 0.00000 0.00000
0.00790 0.00730 0.00670 0.00590 0.00590
Redevelopment Authority Rate4 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rate5 0.19685 0.19462 0.19792 0.19269 0.19630 Source: HdL, San Diego County Assessor 2012/13-2021/22 Tax Rate Tables City of National City
Direct and Overlapping Property Tax Rates (Continued)
Last Ten Fiscal Years
(Rate Per $100 of Taxable Value)
Fiscal Year
¹ In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 5 Total Direct Rate is the weighted average of all individual direct rates applied by the City/agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purpose of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue. ² Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
³ City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where knowns. 4 Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The Approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. 165Page 952 of 1017
Taxable Percentage of Taxable Percentage of
Assessed Value Net Assessed Value Net
(Secured and Assessed (Secured and Assessed
Taxpayer (Parcels) Unsecured) Rank Value Unsecured) Rank Value PLAZA BONITA LLC 270,026,104$ 1 6.04% - - - PASHA AUTOMOTIVE SERVICES 79,401,071 2 1.72% - - - FAIRFIELD PARK VILLAS LP 73,625,434 3 1.58% - - - P V H R LLC 65,834,099 4 1.43% - - - H G FENTON PROPERTY COMPANY 56,013,849 5 1.20% - - - COSTCO WHOLESALE CORPORATION 48,533,901 6 1.08% - - - NATIONAL CITY INVESTMENT LP 45,836,633 7 0.98% - - - M G P X I U S PROPERTIES LLC 38,492,023 8 0.83% - - - MRT OF NATIONAL CITY CALIF-SNF 36,196,560 9 0.79% - - - MPT OF PARADISE VALLEY LP 34,986,050 10 0.75% - - - CENTERMARK PROPERTIES INC - - - 243,385,916$ 1 7.96% P V H R LLC - - - 58,630,445 2 1.92% PASHA AUTOMOTIVE SERVICES - - - 102,620,376 3 1.48% COSTCO WHOLESALE CORPORATION - - - 43,656,318 4 1.04% MPT OF PARADISE VALLEY LP - - - 30,150,096 5 0.99% SWEETWATER ASSOCIATES LP - - - 23,468,112 6 0.77% WILLIAMS G W COMPANY - - - 23,306,145 7 0.76% PRIME HEALTHCARE SERVICES FOUNDATION INC - - - 22,350,338 8 0.73% MARINA GATEWAY DEVELOPMENT COMPANY LLC - - - 21,956,397 9 0.73% WALMART REAL ESTATE BUSINESS TRUST - - - 21,814,669 10 0.72% Top Ten Total 748,945,724$ 15.92% 591,338,812$ 19.01% City Total 4,703,355,402$ * 3,109,969,070$ *
* Value includes outer TRA's
Source: HdL, San Diego County Assessor 2012/13- 2021/22 Combined Tax Rolls and the SBE Non Unitary Tax Rolls City of National City
Principal Property Tax Payers
Current Year and Nine Years Ago
2021/22 2012/13
166Page 953 of 1017
Year Full Value Sales Average Price Median Price Median % Change 2019 225 420,640$ 439,000$
2020 210 448,512$ 466,000$ 6.15 2021 258 524,948$ 550,000$ 18.03 2022 162 602,420$ 634,000$ 15.27 City of National City
Sales Value History
Single Family Residential Full Value Sales (1/1/2020-8/31/2022) Source: San Diego County Recorder
167Page 954 of 1017
This page intentionally left blank.
168Page 955 of 1017
2021-22 2012-13
Business Name Business Category Business Name Business Category ABC Supply Co Building Materials Arco Service Stations
Arco Service Stations Arco AM PM Service Stations
Arco AM PM Service Stations Ball Mitsubishi New Motor Vehicle Dealers Ball Mitsubishi New Motor Vehicle Dealers Frank Hyundai New Motor Vehicle Dealers Burlington Coat Factory Family Apparel Frank Subaru New Motor Vehicle Dealers Chick Fil A Quick-Service Restaurants Frank Toyota New Motor Vehicle Dealers Frank Hyundai New Motor Vehicle Dealers JC Penney Department Stores Frank Subaru New Motor Vehicle Dealers Macys Department Stores Frank Toyota New Motor Vehicle Dealers McCune Motors New Motor Vehicle Dealers Hd Supply White Cap Building Materials Mor Furniture 4 Less Home Furnishings JC Penny Department Stores Mossy Nissan New Motor Vehicle Dealers Macys Department Stores Nordstrom Rack Department Stores Mossy Nissan New Motor Vehicle Dealers Perry Chrysler Dodge Jeep Ram New Motor Vehicle Dealers National City Gas & Carwash Service Stations Perry Ford New Motor Vehicle Dealers Perry Chrysler Dodge Jeep Ram New Motor Vehicle Dealers Probuild Company Building Materials Perry Ford New Motor Vehicle Dealers Ron Baker Chevrolet New Motor Vehicle Dealers Probuild Company Building Materials Ross Family Apparel Ron Baker Chevrolet New Motor Vehicle Dealers Shell Service Stations Ross Family Apparel South Bay Volkswagen New Motor Vehicle Dealers South Bay Volkswagen New Motor Vehicle Dealers South County Buick GMC New Motor Vehicle Dealers South County Buick Gmc New Motor Vehicle Dealers Sweetwater Harley Davidson Boats/Motorcycles Target Discount Dept Stores Target Discount Dept Stores Walmart Supercenter Discount Dept Stores Univar Solutions USA Drugs/Chemicals Wescott Mazda New Motor Vehicle Dealers Walmart Supercenter Discount Dept Stores Westair Gases & Equipment Drugs/Chemicals Wescott Mazda New Motor Vehicle Dealers Percent of 2021-22 total paid by top 25 accounts = 50.92 Percent of 2012-13 total paid by top 25 accounts = 52.77 * Firms listed alphabetically * Firms listed alphabetically City of National City
Top 25 Sales Tax Producers
For 2021-22 & 2012-13
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies 169Page 956 of 1017
2013 2014 2015 2016 2017
Governmental Activities:
NCJPFA Lease Revenue Refunding Bond 2,300,000$ 1,870,000$ 1,425,000$ 965,000$ 490,000$ Tax Allocation Bonds - - - - - General Obligation Bonds 4,846,073 4,613,668 4,371,263 4,123,858 3,917,653 Bond Premium - - - - - 2017 Clean Energy Bonds - - - - - 2017 Lease Revenue Bonds - - - - - 2021 Pension Obligation Bonds - - - - - Bond discount - - - - - HUD 108 Bond 2003 A 4,965,000 4,450,000 4,140,000 3,805,000 3,440,000 Total Bonded Debt 12,111,073$ 10,933,668$ 9,936,263$ 8,893,858$ 7,847,653$ Per Capita 6,016$ 5,429$ 5,426$ 146$ 128$ Percent of Taxable Assessed Values 231.81% 267.41% 243.02% 217.53% 0.19% Other Governmental Activities Debt
Capital Lease Payable 2,147,477 1,571,831 1,948,686 1,723,764 1,494,160 Business-Type Activities:
Notes Payable-Deed of Trust 2,853,463 1,576,533 1,311,137 1,027,967 725,833 Total Primary Government 17,112,013$ 14,082,032$ 13,196,086$ 11,645,589$ 10,067,646$ Percent of Personal Income 1.78% 1.43% 1.35% 1.14% 0.96% Per Capita 291$ 237$ 223$ 192$ 164$ In 2013, the Tax Allocation Bonds became a Fiduciary responsibility Source: City of National City financial statements / notes to the financial statements Fiscal Year
City of National City
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
170Page 957 of 1017
2018 2019 2020 2021 2022
Governmental Activities:
NCJPFA Lease Revenue Refunding Bond -$ -$ -$ -$ -$ Tax Allocation Bonds - - 2,175,000 1,690,000 1,170,000 General Obligation Bonds 3,635,000 3,360,000 3,080,000 2,790,000 2,490,000 Bond Premium - - - - 9,628 2017 Clean Energy Bonds 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 2017 Lease Revenue Bonds 3,530,497 3,407,479 3,273,024 3,110,214 2,933,781 2021 Pension Obligation Bonds - - - - 83,895,000 Bond discount - - - - (142,838) HUD 108 Bond 2003 A 3,050,000 2,630,000 - - - Total Bonded Debt 12,015,497$ 11,197,479$ 10,328,024$ 9,390,214$ 92,155,571$ Per Capita 5,954$ 5,546$ 166$ 4,649$ 1,469$ Percent of Taxable Assessed Values 271.26% 252.79% 0.22% 211.99% 2.00% Other Governmental Activities Debt
Capital Lease Payable 1,264,425 1,001,185 768,283 627,547 479,639 Business-Type Activities:
Notes Payable-Deed of Trust 403,464 - 803,972 679,023 550,588 Total Primary Government 13,683,386$ 12,198,664$ 11,900,279$ 10,696,784$ 93,185,798$ Percent of Personal Income 1.27% 1.06% 0.89% 0.81% 7.97% Per Capita 220$ 196$ 166$ 151$ 1,478$ Source: City of National City financial statements / notes to the financial statements In 2013, the Tax Allocation Bonds became a Fiduciary responsibility Fiscal Year
City of National City
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
171Page 958 of 1017
2021-2022 Assessed Valuation: $4,752,648,535
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2022 % Applicable¹ 6/30/2022 Metropolitan Water District 20,175,000$ 0.140% 28,245 $ San Diego Community College District 1,344,708,217 0.002% 26,894 Southwestern Community College District 777,649,345 7.209% 56,060,741 Chula Vista City School District 125,545,285 1.302% 1,634,600 Chula Vista City School District School Facilities Improvement District No. 1 77,730,000 2.249% 1,748,148 National School District 36,641,000 93.702% 34,333,350 Sweetwater Union High School District 376,281,149 8.562% 32,217,192 Sweetwater Union High School District Community Facilities Districts 3,338,880 23.372% 780,363 City Overlapping Tax and Assessment Debt Subtotal 2,762,068,876 126,829,533 City of National City 2,490,000 100% 2,490,000 City Tax and Assessment Debt Subtotal 2,490,000 2,490,000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 2,764,558,876 $ 129,319,533 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations 245,340,000 $ 0.784% 1,923,466 $ San Diego County Pension Obligation Bonds 340,825,000 0.784% 2,672,068 San Diego County Superintendent of Schools Obligations 7,780,000 0.784% 60,995 Southwestern Community College District General Fund Obligations 375,000 7.209% 27,034 Sweetwater Union High School District Certificates of Participation 29,140,000 8.562% 2,494,967 Chula Vista City School District Certificates of Participation 192,105,000 1.302% 2,501,207 City of National City General Fund Obligations 4,733,781 100.000% 4,733,781 City of National City Pensions Obligation Bonds 83,895,000 100.000% 83,895,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT - $ 98,308,518 $ Overlapping Tax Increment Debt (Successor Agency) 35,939,000 $ 100% 35,939,000 $ COMBINED TOTAL DEBT -$ 263,567,051 $ Total Direct Debt 91,118,781$
Total Overlapping Debt 172,448,270
Combined Total Debt2
263,567,051$
Ratios to 2020-21 Assessed Valuation:
Direct Debt ($2,490,000) 0.05%
Total Direct and Overlapping Tax and Assessment Debt 2.72% Total Direct Debt ($7,700,214) 1.92%
Combined Total Debt 5.55%
Ratios to Redevelopment Successor Agency Incremental Valuation ($2,424,064,109):
Total Overlapping Tax Increment Debt 1.44%
Source: MuniServices, LLC
City of National City
Direct and Overlapping Debt
As of June 30, 2022
¹ The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is whing the boundaries of the city divided by the district's total taxable assessed value. ² Excludes tax and revenue anticipation notes; enterprise revenue, mortgage revenue, and tax allocation bonds; and non-bonded lease obligations.
Source: California Municipal Statistics, Inc.
172Page 959 of 1017
Year Secured Unsecured SBE Nonunitary Net Total AV % Change 2012/13 2,920,983,109$ 183,790,343$ 5,195,618$ 3,109,969,070$ 3.88% 2013/14 3,024,717,426$ 224,847,953$ 5,224,473$ 3,254,789,852$ 4.66% 2014/15 3,151,745,766$ 197,869,900$ 5,224,473$ 3,354,840,139$ 3.07% 2015/16 3,228,350,085$ 208,192,396$ 4,088,740$ 3,440,631,221$ 2.56% 2016/17 3,383,262,493$ 200,687,180$ 4,088,640$ 3,588,038,313$ 4.28% 2017/18 3,663,900,667$ 209,840,073$ 4,088,640$ 3,877,829,380$ 8.08% 2018/19 3,824,597,075$ 228,175,189$ 4,429,496$ 4,057,201,760$ 4.63% 2019/20 4,040,622,752$ 233,956,577$ 4,429,496$ 4,279,008,825$ 5.47% 2020/21 4,358,420,884$ 244,900,101$ 4,429,496$ 4,607,750,481$ 7.68% 2021/22 4,494,935,185$ 203,990,721$ 4,429,496$ 4,703,355,402$ 2.07% Source: HdL, San Diego County Assessor 2021/22 Combined Tax Rolls City of National City
Net Taxable Assessed Value History
2012/13 - 2021/22
173Page 960 of 1017
2013 2014 2015 2016 2017
Assessed Valuation 3,354,840,139$ 3,440,631,221$ 3,354,840,139$ 3,877,829,380$ 3,588,038,313$ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 838,710,035$ 860,157,805$ 838,710,035$ 969,457,345$ 897,009,578$ Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 125,806,505$ 129,023,671$ 125,806,505$ 145,418,602$ 134,551,437$ Total Debt (due more than one year) 21,416,534$ 20,857,367$ 20,579,839$ 19,496,761$ 19,090,044$ Less: Non Bonded Debt
Claims Payable (4,604,010) (5,466,746) (5,580,594) (6,112,318) (6,416,518) Compensated Absences (948,661) (1,421,472) (1,632,485) (1,821,032) (2,023,755) Capitalized Lease Obligation (1,571,831) (1,362,172) (1,723,765) (1,494,160) (1,249,932) Notes Payable (1,576,533) (1,311,137) (1,027,967) (725,833) (403,465) Total Applicable to Limitation 12,715,499$ 11,295,840$ 10,615,028$ 9,343,418$ 8,996,374$ Legal Debt Margin 113,091,006$ 117,727,831$ 115,191,477$ 136,075,184$ 125,555,063$ Total debt applicable to the limit as
a percentage of debt limit 10% 9% 8% 6% 7%
Source: City of National City financial statements / notes to the financial statements Fiscal Year
City of National City
Legal Debt Margin Information
Last Ten Fiscal Years
174Page 961 of 1017
2018 2019 2020 2021 2022
Assessed Valuation 3,877,829,380$ 4,057,201,760$ 4,146,817,637$ 4,523,039,978$ 4,703,355,402$ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 969,457,345$ 1,014,300,440$ 1,036,704,409$ 1,130,759,995$ 1,175,838,851$ Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 145,418,602$ 152,145,066$ 155,505,661$ 169,613,999$ 176,375,828$ Total Debt (due more than one year) 22,603,785$ 22,569,433$ 26,589,172$ 26,589,172$ 26,615,223$ Less: Non Bonded Debt
Claims Payable (7,089,594) (8,262,594) (11,356,000) (11,356,000) (11,948,000) Compensated Absences (1,372,764) (1,622,476) (3,755,267) (3,847,859) (3,983,713) Capitalized Lease Obligation (1,001,185) (768,962) (768,283) (768,283) (479,639) Notes Payable - - - - - Total Applicable to Limitation 13,140,242$ 11,915,401$ 10,709,622$ 10,617,030$ 10,203,871$ Legal Debt Margin 132,278,360$ 140,229,665$ 144,796,039$ 158,996,970$ 166,171,957$ Total debt applicable to the limit as
a percentage of debt limit 9% 8% 7% 6% 6%
Source: City of National City financial statements / notes to the financial statements Fiscal Year
City of National City
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
175Page 962 of 1017
2013 2014 2015 2016 2017
Revenue
Property Tax Gross Incremental Revenue 11,505,010$ 13,608,368$ 12,705,481$ 11,558,679$ 7,740,998$ Debt Service Requirements
Principal 4,120,000$ 4,290,000$ 5,230,000$ 2,070,000$ 2,220,000$ Interest and Fiscal Charges 3,797,907 3,589,747 3,484,532 3,078,878 2,980,532 Pass-through Payments - - - - - 7,917,907$ 7,879,747$ 8,714,532$ 5,148,878$ 5,200,532$ Debt Coverage 1.45 1.73 1.46 2.24 1.49
Source: City of National City Annual Comprehensive Financial Reports or financial statements Fiscal Year
City of National City
Pledged Revenue Coverage
Last Ten Fiscal Years
176Page 963 of 1017
2018 2019 2020 2021 2022
Revenue
Property Tax Gross Incremental Revenue 8,921,732$ 5,185,031$ 1,204,954$ 2,687,984$ 3,485,844$ Debt Service Requirements
Principal 3,163,000$ 3,113,000$ 3,113,000$ 3,194,000$ 3,131,000$ Interest and Fiscal Charges 1,166,000 1,088,084 1,088,084 1,009,785 931,307 Pass-through Payments - - - - - 4,329,000$ 4,201,084$ 4,201,084$ 4,203,785$ 4,062,307$ Debt Coverage 2.06 1.23 0.29 0.64 0.86
Source: City of National City Annual Comprehensive Financial Reports or financial statements Fiscal Year
Pledged Revenue Coverage (Continued)
City of National City
Last Ten Fiscal Years
177Page 964 of 1017
This page intentionally left blank.
178Page 965 of 1017
Year
Total
Population
Pct of SD
County
Population3
Pct
Change
from
Previous
Year
Median
Age
Avg.
Household
Size2
% High
School
Graduate
(25+)
% Bachelor's
Degree or
Higher (25%)
Unemployment
Rate
Personal
Income
(000s)1
Per Capita
Personal
Income1
2012 58,967 1.9% 2.0% 31.5 3.44 65.1% 12.6% 18.9% $933,389 $15,829 2013 58,838 1.9% -0.2% 31.7 3.40 66.8% 13.1% 13.6% $963,708 $16,379 2014 59,381 1.9% 0.5% 32.0 3.41 67.9% 12.7% 11.9% $982,043 $16,538 2015 59,235 1.8% -0.2% 31.5 3.41 69.8% 12.5% 8.1% $977,614 $16,504 2016 60,768 1.8% 2.6% 31.9 3.40 70.8% 12.7% 6.6% $1,020,729 $16,797 2017 61,210 1.8% 0.7% 32.2 3.40 72.3% 12.9% 5.9% $1,048,669 $17,132 2018 62,257 1.9% 1.7% 32.5 3.40 72.4% 14.2% 4.1% $1,078,906 $17,329 2019 62,307 1.9% 0.1% 32.5 3.39 73.5% 14.6% 4.4% $1,155,824 $18,550 2020 62,749 1.9% 0.7% 34.2 3.30 74.9% 14.2% 12.6% $1,347,968 $21,481 2021 61,471 1.9% -2.0% 33.9 3.40 75.4% 15.8% 9.3% $1,418,597 $23,077 NA: Not available.
* 2022 information not available.
1 Dollar values are inflation-adjusted to 2009
2 United States Census Bureau
3 United States Census Bureau (SD County)
City of National City
Demographic and Economic Statistics
Last Ten Fiscal Years
Educational Attainment
179Page 966 of 1017
2013 2014 2015 2016 2017
Function/Program
General Government
City Clerk 3.00 3.00 3.00 3.00 3.00
City Manager 7.05 8.00 8.00 8.00 8.00
Risk Management 1.00 1.00 1.00 1.00 1.00
Management Information Systems 3.00 3.00 3.50 4.00 4.00 Finance 14.48 14.48 14.77 15.77 14.29
Purchasing 2.48 2.48 1.48 1.48 1.48
City Attorney 3.00 3.50 4.00 3.50 4.00
Human Resources 3.00 3.00 3.00 5.00 5.00
Community Development
1 19.60 19.34 15.01 — —
Planning 3.00 3.00 3.00 4.00 4.00
Building 3.00 4.00 4.00 5.00 5.00
Engineering 9.00 10.00 11.00 13.00 13.00
Redevelopment1 3.20 3.20 0.00 0.00 0.00
Housing & Grants1,3 14.50 14.00 15.00 15.00 16.00
Neighborhood Services1 10.00 10.00 10.00 11.00 11.00
Public Works2 41.00 42.00 45.00 45.00 46.50
Community Services2 28.35 19.35 15.01 17.98 18.98
Nutrition Center 6.75 10.00 10.00 10.00 10.00
Library 56.47 56.30 20.35 21.35 21.85
Public Safety
Police 124.38 125.38 129.50 129.50 126.98
Fire 42.00 43.00 43.00 47.00 47.00
Public Works during Fiscal Year 2005
Source: City of National City Annual Adopted Budgets
Fiscal Year
City of National City
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
4Housing & Grants was changed to Housing & Economic Development in 2018 1 Prior to Fiscal Year 2007 Redevelopment, Advanced Planning / Economic Development, Housing & Grants, and Neighborhood Services were budgeted through the Community Development Commission. 2 Parks Division is no longer included under Community Services Department. It became a division of 180Page 967 of 1017
2018 2019 2020 2021 2022
Function/Program
General Government
City Clerk 3.00 3.00 3.00 2.00 2.00
City Manager 7.00 7.00 7.00 11.00 5.00
Risk Management 1.00 1.00 1.00 1.00 1.00
Management Information Systems 4.00 4.00 4.00 4.00 4.00 Finance 14.29 14.29 14.29 15.29 14.50
Purchasing 1.48 1.48 1.00 1.00 1.00
City Attorney 4.00 5.00 5.00 5.00 4.00
Human Resources 4.00 3.00 4.00 4.00 4.50
Community Development
1 — — ———
Planning 5.00 5.00 5.00 5.00 5.00
Building 5.00 4.00 4.00 4.00 4.00
Engineering 13.00 13.00 10.60 11.00 11.00
Redevelopment
1 0.00 0.00 0.00 0.00 0.00
Housing & Grants1,3 15.00 15.00 15.00 14.00 15.00
Neighborhood Services1 11.00 11.00 12.00 12.00 10.00
Public Works2 46.50 46.50 49.90 51.00 49.00
Community Services2 18.98 18.98 17.00 18.98 11.50
Nutrition Center 9.00 9.00 9.00 10.00 7.25
Library 21.85 21.85 22.85 22.85 7.50
Public Safety
Police 126.98 128.98 128.98 129.94 123.00
Fire 47.00 47.00 51.00 47.00 52.00
Public Works during Fiscal Year 2005
Source: City of National City Annual Adopted Budgets
Fiscal Year
City of National City
Full-Time Equivalent City Government Employees by Function/Program (Continued) Last Ten Fiscal Years
4Housing & Grants was changed to Housing & Economic Development in 2018 1 Prior to Fiscal Year 2007 Redevelopment, Advanced Planning / Economic Development, Housing & Grants, and Neighborhood Services were budgeted through the Community Development Commission. 2 Parks Division is no longer included under Community Services Department. It became a division of 181Page 968 of 1017
2013 2014 2015 2016 2017
Function/Program
Police
Physical Arrests 3,861 3,167 3,484 3,418 3,078
Parking Violations 9,704 11,283 7,434 8,659 7,958
Traffic Violations 3,811 2,158 1,801 1,561 1,563
Fire
Emergency Responses 6,974 6,264 7,815 8,228 8,403
Fires Extinguished 155 149 121 141 125
Inspections 1,591 1,583 1,316 900 837
Other Public Works
Street Resurfacing (miles) 0 0 2 0 0
Parks and Recreation
Athletic Field Permits Issued 9 9 18 26 28
Community Center Admissions¹ 54,520 54,520 18,138 42,762 43,396 Library
Volumes in Collection 241,921 246,299 238,114 233,109 231,683 Total Volumes Borrowed 247,608 215,955 189,145 129,762 111,271 Wastewater
Average Daily Sewage Treatment
(million gallons per day) 3.917 3.902 3.891 3.891 3.921 NA: Not available.
1 Excludes Nutrition Center admissions.
Sources: Various City departments
Fiscal Year
City of National City
Operating Indicators by Function/Program
Last Ten Fiscal Years
182Page 969 of 1017
2018 2019 2020 2021 2022
Function/Program
Police
Physical Arrests 2,733 2,567 1,693 1,654 1,393
Parking Violations 8,693 7,348 2,541 9,573 9,135
Traffic Violations 1,772 1,987 1,119 1,030 929
Fire
Emergency Responses 8,815 8,463 7,784 7,914 8,222
Fires Extinguished 138 120 149 199 249
Inspections 914 820 599 1,035 1,112
Other Public Works
Street Resurfacing (miles) 2 34 1.81 1.40 1.10
Parks and Recreation
Athletic Field Permits Issued 28 13 11 6 0
Community Center Admissions¹ 45,342 56,988 54,906 31,661 30,734 Library
Volumes in Collection 233,086 206,210 204,284 229,019 214,289 Total Volumes Borrowed 110,023 103,594 68,061 16,203 37,038 Wastewater
Average Daily Sewage Treatment
(million gallons per day) 3.921 3.921 4.000 4.000 4.000 NA: Not available.
1 Excludes Nutrition Center admissions.
Sources: Various City departments
Fiscal Year
City of National City
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
183Page 970 of 1017
2013 2014 2015 2016 2017
Function/Program
Police
Stations 1111 1
Zone Offices 1111 0
Patrol Units 38 34 38 45 45
Fire Stations 2222 2
Other Public Works
Streets (miles) 101 101 101 101 108
Highways (miles) 6666 9
Streetlights 1,730 1,730 1,730 1,730 1,995
Traffic Signals 88 74 74 75 74
Parks and Recreation
Acreage 84 84 84 75 80
Playgrounds 4445 5
Baseball/Softball Diamonds 5555 5
Soccer/Football Fields 1111 1
Community Centers 5551 1
Wastewater
Sanitary Sewers (miles) 97 97 97 97 104
Storm Sewers (miles) 25.3 45.0 45.0 45.0 96.0
Treatment Capacity (million gallons per day) 7.10 7.20 7.20 7.20 7.20 NA: Not available.
Sources: Various City departments
City of National City
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
184Page 971 of 1017
2018 2019 2020 2021 2022
Function/Program
Police
Stations 11111
Zone Offices 01111
Patrol Units 45 60 60 60 69
Fire Stations 22233
Other Public Works
Streets (miles) 108 108 108 108 108
Highways (miles) 99999
Streetlights 1,995 2,731 2,731 2,731 848
Traffic Signals 80 80 82 82 80
Parks and Recreation
Acreage 80 80 80 92
Playgrounds 55555
Baseball/Softball Diamonds 55555
Soccer/Football Fields 11111
Community Centers 15155
Wastewater
Sanitary Sewers (miles) 104 104 104 104 104
Storm Sewers (miles) 96.0 96.0 96.0 96.0 96
Treatment Capacity (million gallons per day) 7.20 7.20 7.20 7.20 7 NA: Not available.
Sources: Various City departments
Fiscal Year
City of National City
Capital Asset Statistics by Function/Program (Continued) Last Ten Fiscal Years
185Page 972 of 1017
This page intentionally left blank.
186Page 973 of 1017
AGENDA REPORT
Department: Finance
Prepared by: Paul Valadez, Budget Manager
Meeting Date: Tuesday, June 20, 2023
Approved by: Armando Vergara, Interim City Manager
SUBJECT:
Fiscal Year 2023 Third Quarter Budget Review
RECOMMENDATION:
Accept and File this Report, and Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Authorizing Various Fiscal Year 2023 3 rd Quarter Budget Adjustments.”
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
Not Applicable.
EXPLANATION:
Summary
This report provides a look at the status of the City’s fiscal year 2023 General Fund Budget through March 31, 2023 . A mid-year status report was provided on April 18, 2023. The report also recommends various budget adjustments for fiscal year 2023.
The adopted fiscal year 2023 General Fund budget was balanced with no use of unassigned fund balance for the first time in several years. In fact, budgeted revenues exceeded expenditures by $364,000, which means that if all of the budgeted expenditures and revenues were realized as adopted, $364,000 would be added to the City’s General Fund unassigned fund balance at year end. Instead, b ased on an analysis of year -to-date actual revenues and expenditures and projected financial activity through year-end, approximately $1.6 million is projected to be added to the unassigned fund balance at year end. The following sections of this report will discuss the significant factors leading to this outcome.
Revenues
For fiscal yea r 2023, General Fund revenues are expected to be greater overall than amounts budgeted by $2.0 million. The projected variances by revenue category are shown in Table A.