National City City Council
November 19, 2024

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
58 Note 2 – Cash and Investments (Continued)
A. Deposits
The carrying amount of the City’s cash deposits were $19,830,759 at June 30, 2023. Bank balances before reconciling items were $24,250,814 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 collateral. 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 fair 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 first 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. Interest 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 policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Authorized Maximum 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 Million** 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. Page 1010 of 1135 City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
59 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.

Maximum Maximum
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
Money Market Mutual 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, 2023, the City’s investments had the following recurring fair value measurements:

Percent of
Investment Type Level 2 Uncategorized Total Total
LAIF - $ 46,493,222 $ 46,493,222 $ 35.89%
Money market funds - 43,730 43,730 0.03%
San Diego County Investment Pool - 37,209,041 37,209,041 28.72% Supranational 1,520,252 - 1,520,252 1.17%
Asset-backed Securities 1,265,673 - 1,265,673 0.98%
US Corporate 9,267,721 - 9,267,721 7.15%
US Treasury obligations 17,135,456 - 17,135,456 13.23%
US Agency Securities 5,941,440 - 5,941,440 4.59%
Collateralized mortgage obligations 697,657 - 697,657 0.54% Subtotal 35,828,199 83,745,993 119,574,192 92.30%
Held by fiscal agent:

Section 115 pension trust - 6,668,501 6,668,501 5.15%
Section 115 OPEB trust - 3,267,926 3,267,926 2.52%
Money market funds - 36,797 36,797 0.03%
Subtotal - 9,973,224 9,973,224 7.70%
Total Investments $ 93,719,217 35,828,199 $ 129,547,416 $ 100.00%

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
60 Note 2 – Cash and Investments (Continued)
C. Fair Value Measurement (Continued)
Debt and equity securities classified in Level 1 (where applicable) 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 securities, U.S. agency securities, supranationals, commercial paper, and collateralized mortgage obligations: 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, 2023, the City had the following investments and maturities:

Investment Type Fair Value 1 year or less 1 to 2 years 2-3 years LAIF 46,493,222 $ 46,493,222 $ - $ - $
Money market funds 43,730 43,730 - -
San Diego County Investment Pool 37,209,041 37,209,041 - - Supranational 1,520,252 - 1,520,252 -
Asset-backed securities 1,265,673 - 493,385 772,288
US Corporate 9,267,721 2,158,128 1,573,473 5,536,120
US Treasury obligations 17,135,456 624,889 1,985,935 14,524,632 US Agency Securities 5,941,440 3,123,587 1,474,085 1,343,768 Collateralized mortgage obligations 697,657 697,657
Subtotal 119,574,192 90,350,254 7,047,130 22,176,808
Held by fiscal agent:

Section 115 pension trust 6,668,501 6,668,501 - -
Section 115 OPEB trust 3,267,926 3,267,926 - -
Money market funds 36,797 36,797 - -
Subtotal 9,973,224 9,973,224 - -
Total Investments $ 100,323,478 129,547,416 $ 7,047,130 $ 22,176,808 $ Investment Maturities
The weighted average maturity of the portfolio was 0.77 years.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
61 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 fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to receive City money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal 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:

Standard
Fair Value Moody's & Poor's
LAIF 46,493,222 $ not rated not rated
Money Market Funds 43,730 Aaa AAA
San Diego County Investment Pool 37,209,041 not rated not rated Supranational 1,520,252 Aaa AAA
Asset-backed Securities 1,265,673 Various Various
US Corporate 9,267,721 Various Various
US Treasury obligations 17,135,456 n/a n/a
US Agency securities 5,941,440 Aaa AA+
Collateralized mortgage obligations 697,657 not rated not rated Investment in Section 115 pension trust 6,668,501 not rated not rated Investment in Section 115 OPEB trust 3,267,926 not rated not rated Investments held by bond trustee 36,797 not rated not rated $ 129,547,416
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 securities 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) $ 35.89% 46,493,222 San Diego County Investment Pool 28.72% 37,209,041
US Treasury obligations 13.23% 17,135,456
PARS pension trust Investment in Section 115 pension trust 6,668,501 5.15% US Corporate Corporate Medium Term Notes 7.15% 9,267,721 Issuer Investment Type
US Treasury Obligations
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, 2023
62 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 Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2023 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) depend 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, 2023, the City had $46,493,222 invested in LAIF, which had invested 2.78% 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 quotations are readily available and based on amortized cost or best estimate for those securities where fair value is not readily available. The City valued its investments in LAIF as of June 30, 2023, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The fair value 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, 2023.

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, 2023, the City had $37,209,041 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 realized 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.

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, 2023, the City recognized $462,488 in lease revenue and $84,323 in interest revenue, and the outstanding receivable amount is $3,155,223.

A summary of changes in leases receivable for the fiscal year ended June 30, 2023 is as follows:

Amounts Amounts
Balance due within due in more
July 1, 2022 Additions Reductions June 30, 2023 one year than one year $ - 3,559,741 $ (404,518) $ 3,155,223 $ 420,457 $ 2,734,766 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
63 Note 3 – Leases Receivable and Related Deferred Inflows of Resources (Continued) As of June 30, 2023, the required payments for these leases, including interest, are:

Year Ending Leases
June 30 Receivable Interest Total
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 336,454 35,440 371,894
2029-2033 1,099,441 70,203 1,169,644
2034-2038 98,190 7,550 105,740
2039-2043 36,735 2,342 39,077
$ 351,832 3,155,223 $ 3,507,055 $
As of June 30, 2023, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:

Year Ending
June 30 Total
2024 453,004 $
2025 410,530
2026 380,192
2027 369,073
2028 313,480
2029-2033 986,196
2034-2038 87,002
2039-2043 30,021
$ 3,029,498
Note 4 – Loans Receivable
A. Government-Wide Financial Statements
At June 30, 2023, the City had the following loans receivable, including principal and accrued interest:

Morgan Tower Housing Associates, LP 14,881,415 $
Kimball Tower Housing Associates, LP 19,617,422
Copper Hills Apartments, LP 7,132,674
Plaza City Apartments, LP 3,422,000
Home Improvement Loan Program 23,199
First Time Home Buyers Program 2,723,653
Owner Occupied Loan Program 368,601
Rental Rehabilitation Loan Program 3,332,500
Paradise Creek, LP 5,774,496
Subtotal 57,275,960
Less: allowance for doubtful accounts (12,017,829)
Total $ 45,258,131

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
64 Note 4 – Loans Receivable (Continued)
A. Government-Wide Financial Statements (Continued)
Morgan Tower Housing Associates, LP
On March 28, 2019, the Community Development Commission- 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 Housing Associates, L.P., for $33,800,000. The CDC-HA sold only the improvements and retained fee-simple ownership of the land through a 99 year-ground lease. The CDCHA provided a seller carryback note totaling $15,106,284. The note carries a 55-year term with interest compounding annually at 2.91% and has a mandatory annual 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, 2023, the outstanding balance was $14,881,415.

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 lowincome senior households located at 1317 D Avenue, National 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, 2023, the outstanding balance was $19,617,422.

Copper Hills Apartment, LP
In 1999, the Community Development Commission of the City of National City (CDC) entered into several loan agreements with Copper Hills Apartments, LP. CDC Residual Receipts Note dated February 19, 1999 disclosed a loan of $2,400,000 with 3% interest per annum for 55 years, funded by the HOME Program and Low-andModerate-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 Rehabilitation Note with 3% interest per annum for 55 years and funded by the Low-and-Moderate-Income 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 following rehabilitation and renovation. At June 30, 2023, the outstanding balance was $7,132,674 with an associated contractual allowance of $2,367,995.

Plaza City Apartments, LP
The CDC of the City of National City 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 September 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, demolition and development of certain real property located at 1535 Plaza Blvd., National City, CA. At June 30, 2023, the outstanding balance 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 Block Grant funds. The loan program provided loans to owners of singlefamily residences that wished to rehabilitate their property, providing for safe, decent, and sanitary housing throughout National City. The loan program provided favorable terms of repayment and stopped issuing loans in 2002. At June 30, 2023, the outstanding balance of the loans made was $23,199. Page 1016 of 1135 City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
65 Note 4 – Loans Receivable (Continued)
A. Government-Wide Financial Statements (Continued)
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 ModerateIncome Housing Set-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 borrowers. At June 30, 2023, the outstanding balance of the loans made was $2,723,653 with an allowance for doubtful accounts of $2,723,653.

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 the loans provided is deferred for 30 years. At June 30, 2023, the outstanding balance of the loans made was $368,601 with an allowance for doubtful accounts of $330,043.

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 financing to developers for the rehabilitation of multi-family complexes and also provides for long-term rental assistance to deed-restricted units. At June 30, 2023, the outstanding balance of loans made was $3,332,500 with an allowance for doubtful accounts of $3,174,138.

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 201-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, 2023, the note receivable amount is $5,774,496. 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, 2023, the Agency had the following loans receivable, including principal and accrued interest:

National City Mile of Cars 282,147 $
First Time Home Buyers Program 2,500,000
Subtotal 2,782,147
Less: allowance for doubtful accounts (2,500,000)
Total $ 282,147

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
66 Note 4 – Loans Receivable (Continued)
B. Fiduciary Fund Financial Statements (Continued)
National City Mile of Cars
In July 20, 2010, the Community Development Commission 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 improvements constituting the signage. The Commission agreed to loan to the Participant the amount of $675,000 for said improvements. As of June 30, 2023, the note receivable amount was $282,147. The Participant agreed to execute a promissory note to repay 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- and Moderate-Income Housing Set-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 borrowers. At June 30, 2023, the outstanding balance of the loans made was $2,500,000 with an allowance for doubtful accounts applied for the full balance.

Note 5 – Interfund Balances and Transactions
A. Due to/Due from other funds
At June 30, 2023, interfund receivables and payables were as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund Other Special Revenue Fund 6,845,085 $ Overdrawn Cash General Fund Non-Major Governmental Funds 1,162,581 Overdrawn Cash Total $ 8,007,666
Current interfund balances arise in the normal course of operations 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, 2023, interfund transfers were as follows:

Transfers In Transfers Out Amount Purpose
Other Special Revenue Fund General Fund 386,814 $ Operating subsidy Library Fund General Fund 1,184,150 Operating subsidy
Parks Maintenance Fund General Fund 838,345 Operating subsidy Nutrition Fund General Fund 157,901 Operating subsidy
Subtotal 2,567,210
General Fund ARPA 2,000,000 Operating subsidy
Vehicle Replacement Reserve ARPA 430,293 Vehicle purchases Subtotal 2,430,293
General Fund Other Special Revenue Fund 5,500 Overhead allocation Nutrition Fund Library Fund 61 Miscellaneous
Facilities Maintenance Nutrition 48,000 Maintenance
Nutrition Fund Housing Authority Special Revenue Fund 545,073 Operating subsidy Total $ 5,596,137

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
67 Note 6 – Capital Assets
A. Governmental Activities
A summary of changes in capital assets for governmental activities for the year ended June 30, 2023 is as follows:

Balance Transfers/ Balance
July 1, 2022 Additions Deletions Reclassifications June 30, 2023 Capital assets, not being depreciated/amortized:

Land 25,597,009 $ - $ - $ - $ 25,597,009 $
Right of way 4,245,088 - - - 4,245,088
Construction in progress 28,806,065 9,431,248 - - 38,237,313 Total capital assets, not being depreciated/amortized 9,431,248 58,648,162 - - 68,079,410 Capital assets, being depreciated/amortized:

Buildings and improvements 63,269,402 - - - 63,269,402
Machinery and equipment 23,818,498 905,678 - - 24,724,176 Infrastructure 162,363,681 4,560,304 (86,410) - 166,837,575 Right-to-use lease assets 598,752 - - - 598,752
Radio rights 1,270,763 - - - 1,270,763
Subtotal 5,465,982 251,321,096 (86,410) - 256,700,668
Less accumulated depreciation/amortization
Buildings and improvements (39,250,820) (2,190,873) - - (41,441,693) Machinery and equipment (17,213,413) (1,448,266) - - (18,661,679) Infrastructure (81,824,326) (3,552,428) 86,410 - (85,290,344) Right-to-use lease assets (437,432) (59,875) - - (497,307) Radio rights (381,228) (63,538) - - (444,766)
Subtotal (7,314,980) (139,107,219) 86,410 - (146,335,789) Total capital assets, being depreciated/amortized (1,848,998) 112,213,877 - - 110,364,879 Total capital assets, net $ 7,582,250 170,862,039 $ - $ - $ 178,444,289 $ Depreciation and amortization expense was charged to functions/programs as follows:

General government 991,261 $
Public safety 1,179,119
Transportation 3,554,894
Community development 19,875
Culture and leisure 599,378
Internal service funds 970,453
Total depreciation/amortization expense $ 7,314,980

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
68 Note 7 – Long-Term Debt
A. Governmental Activities
A summary of changes in governmental activities long-term debt for the year ended June 30, 2023 is as follows:

Balance Debt Debt Balance Due within Due in More
June 30, 2022 Issued Retired June 30, 2023 One Year Than One Year Long-term debt:

Public offerings:
2012 General Obligation Bonds 2,490,000 $ - $ (315,000) $ 2,175,000 $ 330,000 $ 1,845,000 $ Bond premium 9,628 - (1,605) 8,023 - 8,023
Section 108 Bonds 1,170,000 - (565,000) 605,000 605,000 - 2017 Clean Energy Bonds 1,800,000 - - 1,800,000 84,635 1,715,365 2017 Lease Revenue Bonds 2,933,781 - (190,720) 2,743,061 120,936 2,622,125 2021 Pension Obligation Bonds 83,895,000 - (2,565,000) 81,330,000 3,655,000 77,675,000 Bond discount (142,838) - 7,142 (135,696) - (135,696)
Private placements:

Notes payable 550,588 - (132,019) 418,569 135,702 282,867 Lease liabilities 479,639 - (153,267) 326,372 159,172 167,200 Total long-term debt $ - 93,185,798 $ (3,915,469) $ 89,270,329 $ 5,090,445 $ 84,179,884 $ Classification
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 Obligation 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 the 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, 2023, the outstanding balance is $2,175,000.

The annual debt service requirements for the 2012 General Obligation Refunding Bonds outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
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 385,000 20,563 405,563
2029 395,000 6,913 401,913
Total $ 229,476 2,175,000 $ 2,404,476 $
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 through 2024 in the amount ranging from $170,000 to $635,000 beginning in 2005. The interest on the bonds is payable semi-annually on each February 1 and August 1, commencing February 1, 2004. As of June 30, 2023, the outstanding balance is $605,000.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
69 Note 7 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Section 108 Bonds (Continued)
The annual debt service requirements for the Section 108 Bonds outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
2024 605,000 $ 8,470 $ 613,470 $
Total $ 8,470 605,000 $ 613,470 $
2017 Clean Energy Bonds and 2017 Lease Revenue Bonds
In July 2017, the National City Joint Powers Financing Authority (“NCJPFA”), pursuant 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 Energy 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. At June 30, 2023, the outstanding balances were $1,800,000 and $2,743,061 for the 2017 Clean Energy Bonds and the 2017 Lease Revenue Bonds, respectively.

The annual debt service requirements for the 2017 Clean Energy Bonds outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
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 108,846 67,588 176,434
2029-2033 650,641 251,118 901,759
2034-2037 667,195 74,677 741,872
Total $ 711,018 1,800,000 $ 2,511,018 $
The annual debt service requirements for the 2017 Lease Revenue Bonds outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
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 161,712 59,842 221,554
2029-2033 991,058 224,208 1,215,266
2034-2037 1,047,756 67,523 1,115,279
Total $ 630,609 2,743,061 $ 3,373,670 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
70 Note 7 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2021 Pension Obligation Bonds
On November 16, 2021, the City issued the 2021 Taxable Pension Obligation Bonds in the amount of $83,895,000 with an original issue discount of $142,838. The purpose of the bonds was to refinance a portion of the City’s unfunded actuarial accrued liability with respect to its payment obligations to CalPERS. The bonds accrue interest rates between 0.384% and 3.423%. Interest on the bonds is payable semiannually 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 November 1, 2042. The balance at June 30, 2023, was $81,330,000.

The annual debt service requirements for the 2021 Pension Obligation Bonds outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
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 3,695,000 1,951,580 5,646,580
2029-2033 18,925,000 8,480,865 27,405,865
2034-2038 20,160,000 5,718,662 25,878,662
2039-2043 23,860,000 2,222,211 26,082,211
Total $ 26,739,628 81,330,000 $ 108,069,628 $
Notes Payable
San Diego County Regional Communication System
In 2017, the County of San Diego (the “County”) and certain local governments, 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 regional 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 operations. The RCS includes the following subsystems: a trunked voice system, microwave 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.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
71 Note 7 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Notes Payable (Continued)
San Diego County Regional Communication System (Continued) The annual debt service requirements for the San Diego County RCS Notes Payable outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
2024 135,702 $ 11,678 $ 147,380 $
2025 139,488 7,892 147,380
2026 143,379 4,001 147,380
Total $ 23,571 418,569 $ 442,140 $
Lease Liabilities
Balance Debt Debt Balance Due within Due in More
July 1, 2022 Issued Retired June 30, 2023 One Year Than One Year Honeywell Lease 477,904 $ - $ (151,532) $ 326,372 $ 159,172 $ 167,200 $ Fleet Vehicle Lease - general 1,735 - (1,735) - - -
Total $ - 479,639 $ (153,267) $ 326,372 $ 159,172 $ 167,200 $ Classification
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 Center), boiler replacement (Civic Center and Police Station), VFD (Police Station), and rooftop package unit replacement (Public Works, Police Station and MLK Community Center). Quarterly payments in arrears of principal and interest are $43,101 and imply a 3.45% interest rate. The final payment will be made in 2025. The balance at June 30, 2023 on this contract was $326,372.

The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2023, are as follows:

Year Ending
June 30, Principal Interest Total
2024 159,172 $ 13,232 $ 172,404 $
2025 167,200 5,205 172,405
Total $ 18,437 326,372 $ 344,809 $
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-year payment plan. The balance at June 30, 2023 was $0.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
72 Note 7 – Long-Term Debt (Continued)
B. Fiduciary Funds
A summary of changes in fiduciary funds long-term debt for the year ended June 30, 2023 is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2022 Issued Retired June 30, 2023 One Year Than One Year 2017A Tax Allocation
Refunding Bonds 34,075,000 $ - $ (2,996,000) $ 31,079,000 $ 3,065,000 $ 28,014,000 $ 2017B Tax Allocation
Refunding Bonds 1,861,000 - (212,000) 1,649,000 221,000 1,428,000 Total $ - 35,936,000 $ (3,208,000) $ 32,728,000 $ 3,286,000 $ 29,442,000 $ Classification
2017 Series A and B Tax Allocation Refunding Bonds
In September 2017, the Successor Agency to the Community Development Commission as the National City Redevelopment Agency issued $45,874,000 in Tax Allocation Refunding Bonds, Series 2017A, and $2,669,000 in Tax Allocation Refunding Bonds, Series 2017B, to redeem the 2005B and 2011 Tax Allocation Bonds and the 1999 Tax Allocation Housing Bonds, respectively. The 2017 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 payable annually on August 1 for both series of bonds. Interest is payable semiannually 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, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
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 15,469,000 1,387,092 16,856,092
2029-2033 3,241,000 40,389 3,281,389
Total $ 3,903,899 31,079,000 $ 34,982,899 $
The annual debt service requirements for the 2017 Series B Tax Allocation Bonds outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
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 240,000 14,584 254,584
2029-2030 498,000 11,826 509,826
Total $ 139,630 1,649,000 $ 1,788,630 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
73 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 Redevelopment Property Tax Trust Fund (RPTTF) for the Successor Agency that is maintained by the County of San Diego Auditor and Controller. The amounts so allocated are those that would have been allocated to the RDA had the RDA not been dissolved. The Auditor and Controller (A&C) then distributes RPTTF revenues to the Successor Agency 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 payment 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 2023, property tax revenue in the amount of $28,110,407 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 $21,563,146. The actual amount of RPTTF revenue authorized by the State Department of Finance to be distributed to the Successor Agency was $4,199,028.

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 obligation. Total debt service for all Tax Allocation Refunding Bonds (TARBs) in fiscal year 2023 was $4,060,660, 20% of the RPTTF revenue available for distribution to the Successor Agency. Beyond fiscal year 2023 and through final maturity 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 growth 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, 2023 is as follows:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Compensated Absences 3,983,713 $ 2,911,052 $ (2,422,575) $ 4,472,190 $ 2,422,575 $ 2,049,615 $ Total $ 2,911,052 3,983,713 $ (2,422,575) $ 4,472,190 $ 2,422,575 $ 2,049,615 $ Classification
The City’s liability for vested and unpaid compensated absences (accrued vacation, sick leave, and compensatory time) was $4,472,190 at June 30, 2023. For the governmental activities, compensated absences are generally liquidated by the General Fund.

Compensated absences at June 30, 2023 are obligations of the following funds:

General Fund 4,330,738 $
Facilities Maintenance 43,101
Liability Insurance 6,134
Information Systems Maintenance 42,640
Motor Vehicle Services 49,577
Total $ 4,472,190

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
74 Note 9 – Other Required Fund Disclosures
At June 30, 2023, the following funds had deficit fund balances/net position:

Fund Type Funds Deficit
Capital Projects
Fund Proposition A $ (875,705)
Fiduciary Fund Successor Agency To the Community Development Commission of National City Private-Purpose Trust Fund $ (23,881,388) Proposition A Capital Projects Fund – The Proposition A Capital Projects Fund had a deficit of $(875,705) resulting from capital expenses for the year ended June 30, 2023 exceeding revenues. The deficit will be eliminated via future transfers in from other funds and receipt of additional Proposition A funding.

The Successor Agency to the Community Development Commission as the National City Redevelopment Agency (the “Successor Agency”) Private-Purpose Trust Fund - The Successor Agency to the Community Development Commission as the National City Redevelopment Agency Private-Purpose Trust Fund had an accumulated deficit of $(23,881,388). 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, 2023, the City had an unrestricted net position deficit of $(40,208,465) on the Statement of Activities. This deficit incorporates the calculations resulting from the implementation of GASB Statement 68 (Net Pension Liability) in fiscal year 2015 and 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 anticipated 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.

Excess Expenditures Above Appropriations
For the year ended June 30, 2023, the following funds had expenditures that exceeded appropriations:

Excess
Expenditures
Above
Funds Appropriations
Housing Asset Special Revenue Fund 2,672 $
Housing Choice Voucher Program Special Revenue Fund 215,480 Library Special Revenue Fund 68,399
Asset Forfeiture Special Revenue Fund 1,732
Library Bonds Debt Service Fund 1,559

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
75 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 premium 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 1st, 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 $250,000 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 amount 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 selfinsured retention level of $500,000 and $5,000,000 are covered by PRISM which is reinsured by Great American.

Claims in excess of $5,000,000 up to $50,000,000 are covered by PRISM which is reinsured by ACE American Insurance Company. Any statutory benefit in excess of $50,000,000 is covered 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, 2023, the City had an accrued amount of $10,966,000 of workers’ compensation and general liability claims representing estimates of amounts to be paid for actual and incurred but not reported 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 through June 30, 2023 is dependent on future developments, based upon information from the City Attorney, outside counsel and others involved with the administration of the programs, City management believes that the aggregate accrual is adequate to cover such 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:
2023 2022 2021
Claims liabilities - beginning balance 10,966,000 $ 11,948,000 $ 11,356,000 $ 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 2,326,747 57,029 2,207,426 Payments on claims attributable to events of both
the current fiscal year and prior fiscal years (2,000,747) (1,039,029) (1,615,426) Claims liabilities - ending balance 11,292,000 $ 10,966,000 $ 11,948,000 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
76 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 17,146,025 $
Safety Plan 28,405,638
Total $ 45,551,663
Deferred Outflows of Resources
Deferred Outflows of Resources are reported in the accompanying Statement of Net Position as follows:

Net difference
Deferred employer between projected
pension contributions Differences and actual earnings Total made after Changes in between expected and on pension plan pension-related measurement date assumptions actual experience investments deferred outflows Miscellaneous Plan 2,443,327 $ 2,699,412 $ 181,863 $ 7,231,824 $ 12,556,426 $ Safety Plan 4,872,529 6,089,132 506,652 11,763,342 23,231,655 Total $ 8,788,544 7,315,856 $ 688,515 $ 18,995,166 $ 35,788,081 $ Deferred Inflows of Resources
Deferred Inflows of Resources are reported in the accompanying Statement of Net Position as follows:

Differences Total
between expected and pension-related
actual experience deferred inflows
Miscellaneous Plan 1,181,559 $ 1,181,559 $
Safety Plan 3,012,194 3,012,194
Total $ 4,193,753 4,193,753 $
Pension Expense
Pension expenses are included in the accompanying Statement of Revenues, Expenses, and Changes in Net Position as follows:

Pension
Expense
Miscellaneous Plan 4,796,775 $
Safety Plan 8,820,314
Total $ 13,617,089

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
77 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 Agent 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 employers. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement 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 cost-of-living adjustments, and death benefits to plan members and beneficiaries. A classic CalPERS member or PEPRA Safety member becomes 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 attainment 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 compensation. 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 retirement 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 miscellaneous employees. The City provides industrial disability retirement benefit to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50% of final compensation.

An employee's beneficiary may receive the basic death benefit 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 death 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 monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one-time lump sum payment 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 adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by two percent. Page 1029 of 1135
City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
78 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Benefits Provided (Continued)
Employees Covered – At June 30, 2021, the valuation date, the following employees were covered by the benefit terms for each plan:

Miscellaneous Safety
Active employees 178 122
Transferred and terminated employees 246 81
Retired employees and beneficiaries 319 241
Contributions – Section 20814(c) of the California Public Employees’ 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 valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees 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, 2022, the average active miscellaneous and safety employee contribution rates were 8% and 9% of annual pay, respectively, and the employer’s normal cost contribution rates were 11.52% and 21.37% of miscellaneous and safety employee annual payroll, respectively. The employer pays the annual amount required to address the plan’s unfunded accrued liability.

For the year ended June 30, 2023, the employer contributions, including for the unfunded accrued liability, were:

Aggregate
Miscellaneous Safety Total
Contributions - employer 2,443,327 $ 4,872,529 $ 7,315,856 $ Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
79 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Net Pension Liability (Continued)
Actuarial Assumptions – The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.50%
Payroll growth 2.75%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return
Mortality Rate
Post Retirement Benefit Increase

7.00% net of pension plan investment and administrative expenses; includes Inflation
Based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

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, 2021 valuations were based on the results of a January 2015 actuarial experience 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 6.90% for the 2021 actuarial valuation date.

Discount Rate – The discount rate used to measure the total pension liability was 6.90 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 discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 6.90 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 6.90 percent is applied to all plans in the Public Employees’ Retirement Fund (PERF).

The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress 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.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
80 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 determining the long-term expected rate of return, staff took into account both short-term and long-term market return 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 calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each 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 determine 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 for the measurement period ended June 30, 2022 was as follows:

New Strategic
Allocation Real Return
Global equity - cap-weighted 30.00% 4.45%
Global equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment-grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100%
Asset Class

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
81 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, 2021 (Valuation Date) 147,018,442 $ 122,973,221 $ 24,045,221 $ Changes in the year:

Service cost 2,219,469 - 2,219,469
Interest on the total pension liability 10, - 119,206 10,119,206 Changes of assumptions 4,386,544 - 4,386,544
Differences between expected and actual experience (1,920,034) - (1,920,034) Benefit payments, including refunds of members contributions (7,879,058) (7,879,058) - Plan to plan resource movement - - -
Contributions - employer - 31,300,395 (31,300,395)
Contributions - employees - 914,564 (914,564)
Net investment income - (10,433,973) 10,433,973
Administrative expenses - (76,605) 76,605
Net changes 6,926,127 13,825,323 (6,899,196)
Balance at June 30, 2022 (Measurement Date) 153,944,569 $ 136,798,544 $ 17,146,025 $ Miscellaneous Plan
Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2021 (Valuation Date) 230,957,845 $ 177,354,909 $ 53,602,936 $ Changes in the year:

Service cost 4,670,573 - 4,670,573
Interest on the total pension liability 16,009,462 - 16,009,462 Changes of assumptions 8,736,580 - 8,736,580
Differences between expected and actual experience (4,319,836) - (4,319,836) Benefit payments, including refunds of members contributions (11,377,372) (11,377,372) - Plan to plan resource movement - - -
Contributions - employer - 64,869,673 (64,869,673)
Contributions - employees - 1,591,842 (1,591,842)
Net investment income - (16,056,956) 16,056,956
Administrative expenses - (110,482) 110,482
Net changes 13,719,407 38,916,705 (25,197,298)
Balance at June 30, 2022 (Measurement Date) 244,677,252 $ 216,271,614 $ 28,405,638 $ Safety Plan

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
82 Note 11 – Pension Plans (Continued)
B. CalPERS Pension Plans (Continued)
Changes in the Net Pension Liability (Continued)
Sensitivity of the Aggregate Net Pension Liability to Changes in the Discount Rate - The following presents the City’s net pension liability, calculated using the discount 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%
(5.90%) Rate (6.90%) (7.90)
$ 17,146,025 37,364,341 $ 458,990 $
$ 28,405,638 62,444,974 $ 630,264 $
Aggregate Total $ 45,551,663 99,809,315 $ 1,089,254 $
Safety Plan
Miscellaneous Plan
Plan's Aggregate Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position – Detailed information about each pension 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, 2023, the City recognized pension expense in the amounts of $4,796,775 and $8,820,314, 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-line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.

The Expected Average Remaining Service Lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSLs for the Miscellaneous and Safety plans, respectively, for the 2021-22 measurement period are 2.6 and 3.3 years, respectively, which was obtained by dividing the total service years of 1,945 and 1,453, respectively, (the sum of remaining service lifetimes of the active employees) by 734 and 444, 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, 2023
83 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, 2023 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Contributions after measurement date 2,443,327 $ - $
Changes of assumptions 2,699,412 -
Difference between expected and actual experience 181,863 (1,181,559) Difference between projected and actual earning on
pension plan investments 7,231,824 -
Total 12,556,426 $ (1,181,559) $
Deferred outflows Deferred inflows
of Resources of Resources
Contributions after measurement date 4,872,529 $ - $
Changes of assumptions 6,089,132 -
Difference between expected and actual experience 506,652 (3,012,194) Difference between projected and actual earning on
pension plan investments 11,763,342 -
Total 23,231,655 $ (3,012,194) $
Deferred outflows Deferred inflows
of Resources of Resources
Contributions after measurement date 7,315,856 $ - $
Changes of assumptions 8,788,544 -
Difference between expected and actual experience 688,515 (4,193,753) Difference between projected and actual earning on
pension plan investments 18,995,166 -
Total 35,788,081 $ (4,193,753) $
Miscellaneous Plan
Safety Plan
Aggregate Totals

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
84 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 Safety Plan, $2,443,327 and $4,872,529, respectively, were reported as deferred 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, 2024. 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
2024 2,423,401 $ 3,988,051 $ 6,411,452 $
2025 1,774,601 3,440,962 5,215,563
2026 784,848 1,882,759 2,667,607
2027 3,948,690 6,035,160 9,983,850
2028 - - -
Thereafter - - -
$ 15,346,932 8,931,540 $ 24,278,472 $
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 101 retirees. In addition, 350 employees are currently working and earning service credit for eligibility for a City contribution for retiree health benefits. To be eligible for a City contribution, an employee must retire from the City and commence pension benefits under CalPERS on or after age 50 with at least 20 years of service (five years for management and executive employees) with the City. The City provides a fixed dollar monthly 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. The City’s contribution is payable until Medicare eligibility, except management and executive employees are eligible for the City’s contribution during their lifetime. There are no plan assets accumulated in a GASB-compliant trust.

Eligibility
Membership of the plan consisted of the following at June 30, 2023, the date of the latest actuarial valuation:

Active plan members 350
Retirees 101
Total 451

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
85 Note 12 – Other Postemployment Benefits (Continued)
Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2023. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023. The total OPEB liability at June 30, 2023 was:

Total OPEB liability 4,832,170 $
Total OPEB liability 4,832,17 $ 0
Actuarial Assumptions
The total OPEB liability in the June 30, 2022 actuarial valuation was determined using 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, Termination, and Disability
Mortality Improvement Scale
Pre-retirement turnover
Healthcare Trend Rate
Modified MP-2014, which converge to ultimate mortality improvement rates in 2022.

4.13%

2.50%

2.80%
n/a
CalPERS 1997-2014
Ranging from 0.01% to 17.42% based on termination 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, 2023 valuation 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 total OPEB liability was 4.13 percent at the measurement date of June 30, 2023.

It was changed from 4.09 percent at the measurement dated of June 30, 2021. This discount 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, 2023
86 Note 12 – Other Postemployment Benefits (Continued)
Change in the Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2022 4,786,498 $
Changes Recognized for the Measurement Period:

Service Cost 163,178
Interest on the total OPEB liability 196,473
Changes of benefit terms -
Difference between expected and actual experience (2,960) Changes of assumptions (16,218)
Contributions from the employer -
Net investment income -
Administrative expenses -
Benefit payments (294,801)
Net Changes during July 1, 2022 to June 30, 2023 45,672 Balance at June 30, 2023 (Measurement Date) 4,832,170 $ 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 that is 1-percentage-point lower (3.13 percent) or 1-percentage- point higher (5.13 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(3.13%) Rate (4.13%) (5.13%)
$ 4,832,170 5,264,325 $ 4,452,394 $
Plan's Total OPEB Liability
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 are 1-percentage-point lower (5.75 percent decreasing to 3.5 percent) or 1-percentage-point higher (7.75 percent decreasing to 5.5 percent) than the current healthcare cost trend rates:

Discount Rate - 1% Healthcare Cost Discount Rate + 1%
Trend Rates
(5.75% decreasing (6.75% decreasing (7.75% decreasing
to 3.5%) to 4.5%) to 5.5%)
$ 4,832,17 4,830,687 $ 4,833,21 0 $ 0
Plan's Total OPEB Liability

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
87 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-yougo basis (i.e., as medical insurance premiums become due). For fiscal year 2023, the City contributed $294,801 to the plan for current premiums. In fiscal year 2021, the City established an IRS Section 115 OPEB trust. The balance at June 30, 2023 is $3,267,926. 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, 2023, the City recognized OPEB expense of $258,341.

At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience - $ 347,442 $ Changes of assumptions 349,084 913,156
Total 349,084 $ 1,260,598 $
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Measurement Period Deferred Outflows/
Ended June 30, (Inflows) of Resources
2024 (101,310) $
2025 (101,310)
2026 (94,650)
2027 (69,510)
2028 (69,514)
Thereafter (475,220)
$ (911,514)
Note 13 – Commitments and Contingencies
Litigation
The City is presently involved in certain matters of litigation 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.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
88 Note 13 – Commitments and Contingencies (Continued)
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 Transportation, 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, 2023, the City had a total of 392 contractual commitments with a remaining balance of $74,652,141. The following table represents the City’s contractual commitments by contract type.

Construction 16,285,771 $
Consulting services 51,230,116
Legal services 1,069,258
Professional services 6,066,996
Total contractual commitments 74,652,141 $
Encumbrances
At June 30, 2023, the amount of encumbrances within the governmental funds that are expected to be honored upon performance by the vendor in the next year were as follows:

General Fund 3,449,464 $
Housing Asset Fund 105,834
Housing Choice Voucher Program Fund 17,842
Sewer Service Fund 2,153,308
ARPA Fund 2,261,859
Other Special Revenue Fund 6,488,944
Housing Authority Fund 462,287
Aggregate non-major funds 4,730,534
Total encumbrances 19,670,072 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
89 Note 14 – Classification of Fund Balances
The City classifies fund balances, as shown on the Balance Sheet – Governmental Funds as of June 30, 2023 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 4,021,182 $ - $ - $ - $ - $ - $ - $ - $ - $ 4,021,182 $ Inventories and prepaid items 73,336 - - - - - 25,805 - - 99,141 Total nonspendable - 4,094,518 - - - - 25,805 - - 4,120,323 Restricted
Housing - 12,378,082 631,113 - - 2,319,042 49,788,434 - - 65,116,671 Debt service - - - - - - - 11,201 947,723 958,924
Community development 20,000 - - - - - - - 1,467,620 1,487,620 Public safety - - - - - - - - 208,446 208,446
Transportation - - - - - - - - 1,305,265 1,305,265
General services - - - 26,281,997 - - - - 1,981,242 28,263,239 Section 115 OPEB trust 3,267,926 - - - - - - - - 3,267,926 Section 115 pension trust 6,668,501 - - - - - - - - 6,668,501 Total restricted 12,378,082 9,956,427 631,113 26,281,997 - 2,319,042 49,788,434 11,201 5,910,296 107,276,592 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 4,330,737 - - - - - - - - 4,330,737 Community development 650,900 - - - - - - - - 650,900
Public safety 43,435 - - - - - - - - 43,435
Transportation 1,646,522 - - - - - - - - 1,646,522
General Services 2,932,462 - - - - - - - - 2,932,462
Total assigned - 9,604,056 - - - - - - - 9,604,056
Unassigned (deficit) - 23,040,220 - - - - - - (875,705) 22,164,515 Total fund balances $ 12,378,082 62,375,221 $ 631,113 $ 26,281,997 $ - $ 2,319,042 $ 49,814,239 $ 11,201 $ 5,034,591 $ 158,845,486 $ Major Funds
Categorization of Reserves under Adopted City Policies
The City has a policy that governs the accumulation and maintenance of reserves 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, 2023 was $6,668,501. 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, 2023 was $3,267,926.
3) Economic Contingency Reserve – represents funds that are set-aside for use only in exceptional circumstances such as catastrophic events that could negatively impact the financial condition of the City. The targeted funding level is 20% of a single year’s budgeted General Fund operating expenditures. 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, 2023 was $12,800,000 and is equal to the target level. 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 three 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, 2023 was $2,880,000 and is equal to the target level.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
90 Note 14 – Classification of Fund Balances (Continued) Categorization of Reserves under Adopted City Policies (Continued) 5) Unassigned Fund Balance – The City’s policy is to maintain an unassigned fund balance equal to 10% of a single year’s budgeted General Fund operating expenditures. Amounts in excess of the target level will be used to increase or replenish other reserves (with priority given to the Economic Contingency and Facilities Maintenance reserves), to set aside resources for specific 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, 2023, the unassigned fund balance was $23,040,220 which is above the target level of $6.1 million.

Note 15 – Net Investment in Capital Assets
At June 30, 2023, the net investment in capital assets category of net position for the governmental-activities was calculated as follows:

Net Investment
in Capital Assets
Non-depreciable/amortizable capital assets 68,079,410 $ Depreciable/amortizable capital assets, net 110,364,879 Deferred loss on refunding 21,000
2012 General Obligation Bonds (2,175,000)
Bond premium (8,023)
Section 108 Bonds (605,000)
2017 Clean Energy Bonds (1,800,000)
2017 Lease Revenue Bonds (2,743,061)
Notes payable (418,569)
Lease liabilities (326,372)
Total net investment in capital assets $ 170,389,264
Note 16 – Subsequent Events
In Fiscal Year 2023, the City received $97,242.64 in settlement funds from the opioid distributor class action lawsuits.

The City received a further $379,707.50 in settlement funds in Fiscal Years 2024 and 2025 ($485,421.37 to date). The funds are administered by the State’s Department of Health Care Services (DHCS). The State mandates that the funds are spent on opioid and substance use disorder (SUD) remediation activities, but does not have a deadline for the City to fully expend the funds. The Finance Department submits annual reporting to the State to detail expenditures and their role in SUD remediation activities.

The City has not expended or committed any of the funds to date. The Finance Department is currently working closely with Community Development and the City’s Homeless Outreach Team to develop a plan to use the funds to enhance existing outreach activities and complement grant funding available to the City to remediate SUD in the local community. The current timeline is to bring a plan forward to the Council for approval sometime this fall, with implementation in early 2025. When spending does begin, the expenditures will be tracked in a separate expenditure account and reported to the State for annual review.

91 REQUIRED SUPPLEMENTARY

INFORMATION
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92 This page intentionally left blank

City of National City
Required Supplementary Information (Unaudited)
Budgetary Information
For the Year Ended June 30, 2023
93 The City follows these procedures in establishing the budgetary 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 employed 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 Fund, special revenue funds, and debt service funds are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America. 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 proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State 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 portion 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, 2023
94 Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 57,690,453 $ 57,690,453 $ 59,337,020 $ 1,646,567 $ Licenses and permits 821,924 1,189,924 1,049,372 (140,552) Fines and forfeitures 518,300 518,300 773,260 254,960
Use of money and property 949,399 949,399 2,101,683 1,152,284 Intergovernmental 1,025,558 1,025,558 951,725 (73,833)
Charges for services 3,038,052 3,529,080 3,658,791 129,711 Other revenues 795,891 810,889 1,930,299 1,119,410
Total revenues 65,713,603 64,839,577 69,802,150 4,088,547 EXPENDITURES:

Current:

General government 8,852,727 9,647,309 8,616,076 1,031,233 Public safety 42,410,936 42,669,570 43,438,266 (768,696) Transportation 4,032,032 5,373,283 4,660,171 713,112
Community development 537,172 537,172 229,335 307,837
Culture and leisure 4,111,068 4,366,408 3,863,018 503,390 Capital outlay 1,985,000 7,348,930 2,405,227 4,943,703
Debt service:

Principal 322,738 322,738 324,474 (1,736)
Interest and fiscal charges 392,256 392,256 392,255 1
Total expenditures 70,657,666 62,643,929 63,928,822 6,728,844

REVENUES OVER
(UNDER) EXPENDITURES (4,944,063) 2,195,648 5,873,328 10,817,391

OTHER FINANCING SOURCES (USES)
Transfers in - - 2,005,500 2,005,500
Transfers out - - (2,567,210) (2,567,210)
Total other financing sources (uses) - - (561,710) (561,710) Net change in fund balance $ (4,944,063) 2,195,648 $ 5,311,618 10,255,681 $ Fund Balance:

Beginning of year 57,063,603
End of year $ 62,375,221
Budgeted Amounts

City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Housing Asset Special Revenue Fund For the Year Ended June 30, 2023
95 Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property 125,000 $ 125,000 $ 161,449 $ 36,449 $ Total revenues 125,000 125,000 161,449 36,449
EXPENDITURES:

Current:

Community development 185,222 225,884 228,556 (2,672)
Total expenditures 225,884 185,222 228,556 (2,672)
Net change in fund balance $ (100,884) (60,222) $ (67,107) 33,777 $ Fund Balance:

Beginning of year 12,445,189
End of year $ 12,378,082
Budgeted Amounts

City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Housing Choice Voucher Program Special Revenue Fund For the Year Ended June 30, 2023
96 Actual Variance with
Orginal Final Amounts Final Budget
REVENUES:

Fines and forfeitures 30,000 $ 30,000 $ 17,880 $ (12,120) $ Use of money and property 150 150 2,605 2,455
Intergovernmental 15,021,492 15,021,492 14,137,120 (884,372) Total revenues 15,051,642 15,051,642 14,157,605 (894,037) EXPENDITURES:

Current:

Community development 14,705,841 14,855,841 14,790,361 (65,480) Capital outlay - 150,000 - (150,000)
Interest and fiscal charges 9,000 9,000 9,000 -
Total expenditures 15,014,841 14,714,841 14,799,361 (215,480) Net change in fund balance $ 36,801 336,801 $ (641,756) (678,557) $ Fund Balance:

Beginning of year 1,272,869
End of year $ 631,113
Budgeted Amounts

City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Sewer Special Revenue Fund For the Year Ended June 30, 2023
97 Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 134,480 $ 134,480 $
Charges for services 9,931,785 11,669,873 13,242,543 1,572,670 Total revenues 9,931,785 11,669,873 13,377,023 1,707,150 EXPENDITURES:

Current:

General government - 92,003 - (92,003)
Health 8,995,569 9,296,458 8,959,853 336,605
Capital outlay 2,000,000 5,582,546 498,174 5,084,372
Debt service:

Interest and fiscal charges - - 21,300 (21,300)
Total expenditures 14,971,007 10,995,569 9,481,786 5,310,133 Net change in fund balance $ (3,301,134) (1,063,784) $ 3,895,237 7,196,371 $ Fund Balance:

Beginning of year 22,386,760
End of year $ 26,281,997
Budgeted Amounts

City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – ARPA Special Revenue Fund For the Year Ended June 30, 2023
98 Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 9,005,454 $ 9,005,454 $ 4,328,333 $ (4,677,121) $ Total revenues 9,005,454 9,005,454 4,328,333 (4,677,121) EXPENDITURES:

Current:

General government 2,500,000 3,557,020 1,361,982 2,195,038 Public safety - 69,706 56,561 13,145
Capital outlay - 5,315,440 479,497 4,835,943
Total expenditures 8,942,166 2,500,000 1,898,040 7,044,126

REVENUES OVER
(UNDER) EXPENDITURES 63,288 6,505,454 2,430,293 2,367,005 OTHER FINANCING (USES):

Transfers out - - (2,430,293) (2,430,293)
Total other financing (uses) - - (2,430,293) (2,430,293) Net change in fund balance $ 63,288 6,505,454 $ - (63,288) $ Fund Balance:

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, 2023
99 Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 491,036 $ 491,036 $ 474,719 $ (16,317) $
Licenses and permits 227,000 227,000 494,729 267,729
Fines and forfeitures 24,600 24,600 67,314 42,714
Use of money and property - - 23,452 23,452
Intergovernmental 609,685 1,063,936 8,689,658 7,625,722 Charges for services 41,000 41,000 131,446 90,446
Other revenues 1,500 1,500 750 (750)
Total revenues 1,849,072 1,394,821 9,882,068 8,032,996
EXPENDITURES:

Current:

General government 1,360,000 7,079,914 1,633,163 5,446,751 Public safety 1,020,660 1,721,152 1,353,245 367,907
Community development - 119,110 83,946 35,164
Health 208,796 224,335 226,672 (2,337)
Culture and leisure 169,665 256,586 193,522 63,064
Capital outlay - 22,018,258 4,457,540 17,560,718
Total expenditures 31,419,355 2,759,121 7,948,088 23,471,267

REVENUES OVER
(UNDER) EXPENDITURES (29,570,283) (1,364,300) 1,933,980 31,504,263 OTHER FINANCING SOURCES (USES):

Transfers in - - 386,814 386,814
Transfers out - - (5,500) (5,500)
Total other financing sources (uses) - - 381,314 381,314 Net change in fund balance $ (29,570,283) (1,364,300) $ 2,315,294 31,885,577 $ Fund Balance:

Beginning of year 3,748
End of year $ 2,319,042
Budgeted Amounts

100
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City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Housing Authority Special Revenue Fund For the Year Ended June 30, 2023
101
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property 770,073 $ 770,073 $ 1,333,745 $ 563,672 $ Intergovernmental - 10,476,527 171,396 (10,305,131)
Other revenues 86,000 86,000 305,402 219,402
Total revenues 11,332,600 856,073 1,810,543 (9,522,057) EXPENDITURES:

Current:

Community development 1,016,566 1,716,929 814,788 902,141 Capital outlay 217,950 500,711 194,161 306,550
Total expenditures 2,217,640 1,234,516 1,008,949 1,208,691

REVENUES OVER
(UNDER) EXPENDITURES 9,114,960 (378,443) 801,594 (8,313,366) OTHER FINANCING (USES):

Transfers out - - (545,073) (545,073)
Total other financing (uses) - - (545,073) (545,073)
Net change in fund balance $ 9,114,960 (378,443) $ 256,521 (8,858,439) $ Fund Balance:

Beginning of year 49,557,718
End of year $ 49,814,239
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, 2023
102
City Miscellaneous Plan
Total pension liability 2021-2022 2020-2021 2019-2020 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Service cost 2,219,469 $ 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 pension liability 10,119,206 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 4,386,544 - - - (953,437) 7,027,519 - (1,944,963) - Differences between expected and actual experience (1,920,034) 909,313 1,074,893 147,608 371,057 (1,231,712) (975,368) (1,691,529) - Changes in benefit terms - - - - - - - - -
Benefit payments, including refunds of employee contributions (7,879,058) (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 6,926,127 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 141,289,184 147,018,442 135,429,195 130,108,693 125,492,182 114,645,070 110,779,998 109,614,331 104,747,721 Total pension liability - ending (a) $ 147,018,442 153,944,569 $ 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 31,300,395 $ 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 914,564 859,274 944,908 1,041,592 933,458 858,901 820,175 895,912 767,784 Investment income (net of administrative expenses) (10,433,973) 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 (7,879,058) (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 (76,605) (102,218) (140,408) (67,699) (406,601) (122,207) (51,483) (94,900) - Net change in plan fiduciary net position 20,646,435 13,825,323 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 102,326,786 122,973,221 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) $ 122,973,221 136,798,544 $ 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 17,146,025 $ 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 88.86% 83.64% 72.42% 73.54% 73.15% 71.72% 72.20% 76.25% 77.32% Covered payroll 11,215,102 $ 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 percentage of coveredemployee payroll 152.88% 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 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 2023, the discount rate was reduced from 7.15% to 6.90%. 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 Changes in the Net Pension Liability and Related Ratios (Continued) Last Ten Fiscal Years *
For the Year Ended June 30, 2023
103
City Safety Plan
Total pension liability 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Service cost 4,670,573 $ 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 16,009,462 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 8,736,580 - - - (922,226) 10,998,755 - (3,049,086) - Differences between expected and actual experience (4,319,836) 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 (11,377,372) (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 13,719,407 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 220,732,894 230,957,845 212,133,287 201,696,572 190,667,560 173,168,265 168,165,277 166,345,539 159,054,536 Total pension liability - ending (a) $ 230,957,845 244,677,252 $ 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 64,869,673 $ 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 1,591,842 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) (16,056,956) 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 (11,377,372) (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 (110,482) (145,755) (198,201) (95,127) (567,286) (169,427) (71,013) (131,164) - Net change in plan fiduciary net position 31,444,682 38,916,705 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 145,910,227 177,354,909 140,592,304 133,738,191 125,576,309 114,754,281 116,520,861 116,575,309 101,654,589 Plan fiduciary net position - ending (b) $ 177,354,909 216,271,614 $ 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 28,405,638 $ 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 88.39% 76.79% 66.10% 66.28% 66.31% 65.86% 66.27% 69.29% 70.08% Covered payroll 14,296,213 $ 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 coveredemployee payroll 198.69% 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 2023, the discount rate was reduced from 7.15% to 6.90%. 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, 2023
104
Measurement Period 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially determined contribution 2,443,327 $ 4,487,300 $ 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 (31,300,395) (2,443,327) (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 payroll 2, 3 $ 11,215,102 11,523,517 $ 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 21.20% 279.09% 35.50% 34.49% 29.11% 24.85% 26.62% 23.38% 21.11% 19.85% 3 Payroll from prior year, $11,215,102, was assumed to increase by the 2.75% payroll growth assumption.

Notes to Schedule
Valuation date: 6/30/2021 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 Age Normal
Amortization method/period For details, see June 30, 2017 Funding Valuation Report Asset valuation method Market 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 2.75%
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 2017 CalPERS Experience study for the period from 1997 to 2015.

M ortality
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 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 Miscellaneous Plan - 172
1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
2 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total payroll of employees that are provided pensions through the pension plan.

Accordingly, if pensionable earnings are different than total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

City of National City
Required Supplementary Information (Unaudited) (Continued) Schedules of Pension Contributions (Continued)
Last Ten Fiscal Years
For the Year Ended June 30, 2023
105
Measurement Period 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially determined contribution 4,872,529 $ 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) (4,872,529) (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 payroll 2, 3 $ 14,296,213 14,689,359 $ 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 33.17% 453.75% 58.33% 54.34% 49.75% 45.26% 48.15% 44.62% 39.75% 38.38% Notes to Schedule
Valuation date: 6/30/2021 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 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.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age 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 2.75%
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 2017 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. 1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
2 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total payroll of employees that are provided pensions through the pension plan.

Accordingly, if pensionable earnings are different than total earnings for covered-employees, the employer 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, $14,296,213, was assumed to increase by the 2.75% payroll growth assumption.

City of National City
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Total OPEB Liability and Related Ratios Last Ten Fiscal Years 1
For the Year Ended June 30, 2023
106
Measurement period, year ending: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB liability
Service cost 163,178 $ 243,592 $ 215,583 $ 190,082 $ 201,904 $ 196,023 $ 189,577 $ Interest 196,473 134,422 153,536 169,175 187,984 177,753 170,970 Changes of benefit terms - - - - - - -
Differences between expected and actual experience (2,960) (283,064) (70,912) - (131,753) - - Changes of assumptions (16,218) (1,070,116) 301,024 267,125 (25,433) (53,296) - Benefit payments, including refunds of member contributions (294,801) (264,043) (258,237) (244,418) (198,069) (168,761) (166,220) Net change in total OPEB liability (1,239,209) 45,672 340,994 381,964 34,633 151,719 194,327 Total OPEB liability - beginning 6,025,707 4,786,498 5,684,713 5,302,749 5,268,116 5,116,397 4,922,070 Total OPEB liability - ending (a) $ 4,786,498 4,832,170 $ 6,025,707 $ 5,684,713 $ 5,302,749 $ 5,268,116 $ 5,116,397 $ OPEB fiduciary net position
Contributions - employer 294,801 $ 264,043 $ 258,237 $ 244,418 $ 198,069 $ 168,761 $ 166,220 $ Net investment income - - - - - - -
Benefit payments, including refunds of member contributions (294,801) (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 4,832,170 $ 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% 0.00% Covered-employee payroll $ 24,976,459 25,675,800 $ 24,723,720 $ 24,062,015 $ 23,361,180 $ 23,316,000 $ 23,316,000 $ Plan total OPEB liability as a percentage of covered-employee payroll 18.82% 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.

There are no assets accumulated in a trust that meets GASB criteria to pay related benefits for the OPEB plan.

SUPPLEMENTARY INFORMATION
107 Page 1059 of 1135
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BASIC FINANCIAL STATEMENTS
108 Page 1060 of 1135

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.
109 Page 1061 of 1135
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BASIC FINANCIAL STATEMENTS
110 Page 1062 of 1135

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 from 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. 111 Page 1063 of 1135
Library
Parks Capital
Library Maintenance Outlay Gas Tax CDBG
ASSETS
Cash and investments 588,890 $ 413,783 $ 1,021,134 $ 1,349,764 $ 40,908 $ Receivables:

Accounts - - - - -
Taxes 8,759 10,206 9,139 377,737 -
Interest - - - 1,640 -
Loans - - - - 23,199
Total assets $ 423,989 597,649 $ 1,030,273 $ 1,729,141 $ 706,404 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 9,323 $ 77,681 $ 2,247 $ 519,335 $ 124,439 $ Accrued liabilities 47,867 50,457 - 38,200 9,117
Due to other funds - - - - 541,281
Unearned revenue - - - - -
Total liabilities 128,138 57,190 2,247 557,535 674,837
Fund Balances (deficit):

Restricted 540,459 295,851 1,028,026 1,171,606 31,567
Unassigned (deficit) - - - - -
Total fund balances 295,851 540,459 1,028,026 1,171,606 31,567 Total liabilities, deferred inflows of
resources, and fund balances $ 423,989 597,649 $ 1,030,273 $ 1,729,141 $ 706,404 $ (Continued)
City of National City
Combining Balance Sheet
Special Revenue
Non-Major Governmental Funds
June 30, 2023
112 Page 1064 of 1135
Debt Service Capital Projects
HOME Asset Library STP Local/
Program Forfeiture Nutrition Bonds TransNet
ASSETS
Cash and investments 1,104,926 $ 208,202 $ 66,726 $ 947,517 $ - $ Receivables:

Accounts - - 105,153 - 13
Taxes - - - 1,015 -
Interest 1,320 244 - 1,192 -
Loans 406,809 - - - -
Total assets $ 208,446 1,513,055 $ 171,879 $ 949,723 $ 13 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 70,355 $ - $ 44,335 $ 2,000 $ - $
Accrued liabilities 5,559 - 64,597 - -
Due to other funds - - - - -
Unearned revenue 1,088 - - - -
Total liabilities - 77,002 108,932 2,000 -
Fund Balances (deficit):

Restricted 1,436,053 208,446 62,947 947,723 13
Unassigned (deficit) - - - - -
Total fund balances 208,446 1,436,053 62,947 947,723 13 Total liabilities, deferred inflows of
resources, and fund balances $ 208,446 1,513,055 $ 171,879 $ 949,723 $ 13 $ (Continued)
City of National City
Combining Balance Sheet (Continued)
June 30, 2023
Non-Major Governmental Funds
Special Revenue
113 Page 1065 of 1135
Permanent
Total
Non-major
State-Local Library Governmental
Proposition A Partnership Endowment Funds
ASSETS
Cash and investments - $ 133,491 $ 53,878 $ 5,929,219 $ Receivables:

Accounts - - - 105,166
Taxes - - - 406,856
Interest - 168 68 4,632
Loans - - - 430,008
Total assets $ 133,659 - $ 53,946 $ 7,518,177 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 254,405 $ - $ - $ 1,104,120 $
Accrued liabilities - - - 215,797
Due to other funds 621,300 - - 1,162,581
Unearned revenue - - - 1,088
Total liabilities - 875,705 - 2,483,586
Fund Balances (deficit):

Restricted - 133,659 53,946 5,910,296
Unassigned (deficit) (875,705) - - (875,705)
Total fund balances 133,659 (875,705) 53,946 5,034,591
Total liabilities, deferred inflows of
resources, and fund balances $ 133,659 - $ 53,946 $ 7,518,177 $ (Concluded)
Capital Projects
City of National City
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2023
114 Page 1066 of 1135
Library
Parks Capital
Library Maintenance Outlay Gas Tax CDBG
REVENUES:

Taxes 977,800 $ 1,139,386 $ 168,623 $ 2,940,548 $ - $
Fines and forfeitures - - - - -
Use of money and property - - - 14,145 -
Intergovernmental 3,016 5,346 - - 1,464,386
Charges for services - - - - -
Other revenues 5,213 - 12,326 63,661 -
Total revenues 1,144,732 986,029 180,949 3,018,354 1,464,386 EXPENDITURES:

Current:

Public safety - - - - -
Transportation - - - 1,430,116 -
Community development - - - - 633,833
Health - 47,017 - - -
Culture and leisure 2,239,821 1,661,271 48,805 - -
Capital outlay - - - 1,619,746 -
Debt service:

Principal - - - - 565,000
Interest and fiscal charges - 45,700 - - 23,861
Total expenditures 1,753,988 2,239,821 48,805 3,049,862 1,222,694

REVENUES OVER
(UNDER) EXPENDITURES (609,256) (1,253,792) 132,144 (31,508) 241,692 OTHER FINANCING SOURCES:

Transfers in 1,184,150 838,345 - - -
Transfers out (61) - - - -
Total other financing sources 838,345 1,184,089 - - -
CHANGES IN FUND BALANCES 229,089 (69,703) 132,144 (31,508) 241,692 FUND BALANCES (DEFICIT):

Beginning of year 610,162 66,762 895,882 1,203,114 (210,125) End of year $ 295,851 540,459 $ 1,028,026 $ 1,171,606 $ 31,567 $ (Continued)
Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances City of National City
For the Year Ended June 30, 2023
Non-Major Governmental Funds
115 Page 1067 of 1135
Debt Service Capital Projects
HOME Asset Library STP Local/
Program Forfeiture Nutrition Bonds TransNet
REVENUES:

Taxes - $ - $ - $ 373,306 $ - $
Fines and forfeitures - 16,566 - - -
Use of money and property 29,822 1,873 - 5,749 -
Intergovernmental 364,736 - 383,954 - -
Charges for services - - 9,957 - -
Other revenues - - 56,555 - -
Total revenues 18,439 394,558 450,466 379,055 -
EXPENDITURES:

Current:

Public safety - 16,021 - - -
Transportation - - - - -
Community development 377,541 - - - -
Health - - 69,186 - -
Culture and leisure - - 990,763 - -
Capital outlay - - - - -
Debt service:

Principal - - - 315,000 -
Interest and fiscal charges - - - 79,209 -
Total expenditures 16,021 377,541 1,059,949 394,209 -

REVENUES OVER
(UNDER) EXPENDITURES 2,418 17,017 (609,483) (15,154) -
OTHER FINANCING SOURCES:

Transfers in - - 703,035 - -
Transfers out - - (48,000) - -
Total other financing sources - - 655,035 - -
CHANGES IN FUND BALANCES 2,418 17,017 45,552 (15,154) - FUND BALANCES (DEFICIT):

Beginning of year 1,419,036 206,028 17,395 962,877 13
End of year $ 208,446 1,436,053 $ 62,947 $ 947,723 $ 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, 2023
116 Page 1068 of 1135
Permanent
Total
Non-Major
State-Local Library Governmental
Proposition A Partnership Endowment Funds
REVENUES:

Taxes $ - - $ - $ 5,599,663 $
Fines and forfeitures - - - 16,566
Use of money and property 22,643 1,008 - 75,240
Intergovernmental - - 407 2,221,845
Charges for services - - - 9,957
Other revenues - - - 137,755
Total revenues 1,008 22,643 407 8,061,026
EXPENDITURES:

Current:

Public safety - - - 16,021
Transportation - - - 1,430,116
Community development - - - 1,011,374
Health - - - 116,203
Culture and leisure - - - 4,940,660
Capital outlay 2,213,991 - - 3,833,737
Debt service:

Principal - - - 880,000
Interest and fiscal charges - - - 148,770
Total expenditures - 2,213,991 - 12,376,881

REVENUES OVER
(UNDER) EXPENDITURES 1,008 (2,191,348) 407 (4,315,855)
OTHER FINANCING SOURCES:

Transfers in - - - 2,725,530
Transfers out - - - (48,061)
Total other financing sources - - - 2,677,469
CHANGES IN FUND BALANCES 1,008 (2,191,348) 407 (1,638,386) FUND BALANCES (DEFICIT):

Beginning of year 1,315,643 132,651 53,539 6,672,977
End of year $ 133,659 (875,705) $ 53,946 $ 5,034,591 $
(Concluded)
For the Year Ended June 30, 2023
City of National City
Capital Projects
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
117 Page 1069 of 1135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 959,075 $ 959,075 $ 977,800 $ 18,725 $
Intergovernmental 4,197 4,197 3,016 (1,181)
Other Revenues - - 5,213 5,213
Total revenues 963,272 963,272 986,029 22,757
EXPENDITURES:

Current:

Culture and leisure 2,147,422 2,171,422 2,239,821 (68,399) Total expenditures 2,171,422 2,147,422 2,239,821 (68,399)

REVENUES OVER
(UNDER) EXPENDITURES (1,208,150) (1,184,150) (1,253,792) (45,642) OTHER FINANCING SOURCES:

Transfers in - - 1,184,150 1,184,150
Transfers out - - (61) (61)
Total other financing sources - - 1,184,089 1,184,089
CHANGE IN FUND BALANCE $ (1,208,150) (1,184,150) $ (69,703) 1,138,447 $ FUND BALANCE:

Beginning of year 610,162
End of year $ 540,459
For the Year Ended June 30, 2023
Library Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
118 Page 1070 of 1135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 1,125,871 $ 1,125,871 $ 1,139,386 $ 13,515 $
Intergovernmental 5,754 5,754 5,346 (408)
Total revenues 1,131,625 1,131,625 1,144,732 13,107
EXPENDITURES:

Current:

Health 47,517 47,517 47,017 500
Culture and leisure 1,876,753 1,876,753 1,661,271 215,482 Debt Service:

Interest and fiscal charges 45,700 45,700 45,700 -
Total expenditures 1,969,970 1,969,970 1,753,988 215,982

REVENUES OVER
(UNDER) EXPENDITURES (838,345) (838,345) (609,256) 229,089 OTHER FINANCING SOURCES:

Transfers in - - 838,345 838,345
Total other financing sources - - 838,345 838,345
CHANGE IN FUND BALANCE $ (838,345) (838,345) $ 229,089 1,067,434 $ FUND BALANCE:

Beginning of year 66,762
End of year $ 295,851
For the Year Ended June 30, 2023
Parks Maintenance Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
119 Page 1071 of 1135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 150,000 $ 150,000 $ 168,623 $ 18,623 $
Other revenues 10,000 10,000 12,326 2,326
Total revenues 160,000 160,000 180,949 20,949
EXPENDITURES:

Current:

General government - 17,379 - (17,379)
Culture and leisure 51,900 51,900 48,805 3,095
Capital outlay - 5,975 - 5,975
Total expenditures 75,254 51,900 48,805 26,449
CHANGE IN FUND BALANCE $ 84,746 108,100 $ 132,144 47,398 $ FUND BALANCE:

Beginning of year 895,882
End of year $ 1,028,026
For the Year Ended June 30, 2023
Library Capital Outlay Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
120 Page 1072 of 1135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 3,269,653 $ 3,269,653 $ 2,940,548 $ (329,105) $
Use of money and property - - 14,145 14,145
Other revenues - - 63,661 63,661
Total revenues 3,269,653 3,269,653 3,018,354 (251,299)
EXPENDITURES:

Current:

Transportation 1,703,505 1,908,505 1,430,116 478,389
Capital outlay 1,430,342 3,252,981 1,619,746 1,633,235
Total expenditures 5,161,486 3,133,847 3,049,862 2,111,624 CHANGE IN FUND BALANCE $ (1,891,833) 135,806 $ (31,508) 1,860,325 $ FUND BALANCE:

Beginning of year 1,203,114
End of year $ 1,171,606
For the Year Ended June 30, 2023
Gas Tax Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
121 Page 1073 of 1135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 710,043 $ 710,043 $ 1,464,386 $ 754,343 $ Total revenues 710,043 710,043 1,464,386 754,343
EXPENDITURES:

Current:

Community development 313,786 856,705 633,833 222,872
Debt service:

Principal 565,000 565,000 565,000 -
Interest and fiscal charges 23,861 23,861 23,861 -
Total expenditures 1,445,566 902,647 1,222,694 222,872
CHANGE IN FUND BALANCE $ (735,523) (192,604) $ 241,692 977,215 $ FUND BALANCE (DEFICIT):

Beginning of year (210,125)
End of year $ 31,567
For the Year Ended June 30, 2023
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
122 Page 1074 of 1135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 29,822 $ 29,822 $
Intergovernmental 400,681 400,681 364,736 (35,945)
Total revenues 400,681 400,681 394,558 (6,123)
EXPENDITURES:

Current:

Community development 259,273 915,045 377,541 537,504
Culture and leisure - 323,129 - 323,129
Total expenditures 1,238,174 259,273 377,541 860,633
CHANGE IN FUND BALANCE $ (837,493) 141,408 $ 17,017 854,510 $ FUND BALANCE:

Beginning of year 1,419,036
End of year $ 1,436,053
For the Year Ended June 30, 2023
HOME Program Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
123 Page 1075 of 1135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Fines and forfeitures - $ - $ 16,566 $ 16,566 $
Use of money and property - - 1,873 1,873
Total revenues - - 18,439 18,439
EXPENDITURES:

Current:

Public safety - 14,289 16,021 (1,732)
Total expenditures 14,289 - 16,021 (1,732)
CHANGE IN FUND BALANCE $ (14,289) - $ 2,418 16,707 $
FUND BALANCE:

Beginning of year 206,028
End of year $ 208,446
For the Year Ended June 30, 2023
Asset Forfeiture Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
124 Page 1076 of 1135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 341,000 $ 341,000 $ 383,954 $ 42,954 $ Charges for services - - 9,957 9,957
Other revenues 72,600 72,600 56,555 (16,045)
Total revenues 413,600 413,600 450,466 36,866
EXPENDITURES:

Current:

Health - - 69,186 (69,186)
Culture and leisure 1,064,835 1,143,958 990,763 153,195 Total expenditures 1,143,958 1,064,835 1,059,949 84,009

REVENUES OVER
(UNDER) EXPENDITURES (730,358) (651,235) (609,483) 120,875 OTHER FINANCING SOURCES:

Transfers in - - 703,035 703,035
Transfers out - - (48,000) (48,000)
Total other financing sources - - 655,035 655,035
CHANGE IN FUND BALANCE $ (730,358) (651,235) $ 45,552 775,910 $ FUND BALANCE:

Beginning of year 17,395
End of year $ 62,947
For the Year Ended June 30, 2023
Nutrition Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
125 Page 1077 of 1135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 393,815 $ 393,815 $ 373,306 $ (20,509) $
Use of money and property - - 5,749 5,749
Total revenues 393,815 393,815 379,055 (14,760)
EXPENDITURES:

Debt Service:

Principal 315,000 315,000 315,000 -
Interest and fiscal charges 77,650 77,650 79,209 (1,559) Total expenditures 392,650 392,650 394,209 (1,559)
CHANGE IN FUND BALANCE $ 1,165 1,165 $ (15,154) (16,319) $ FUND BALANCE:

Beginning of year 962,877
End of year $ 947,723
For the Year Ended June 30, 2023
Library Bonds Debt Service Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
126 Page 1078 of 1135

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.
127 Page 1079 of 1135
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
ASSETS
Current assets:

Cash and investments 75,307 $ 17,162,460 $ 1,665,809 $ 584,996 $ Accounts receivable - 61,565 - -
Prepaid items and deposits 43,101 - 37,520 -
Total current assets 118,408 17,224,025 1,703,329 584,996 Noncurrent assets:

Restricted cash and investments with fiscal agents 10,334 - - - Capital assets, net 443,985 - 30,319 33,322
Total noncurrent assets 454,319 - 30,319 33,322
Total assets 17,224,025 572,727 1,733,648 618,318

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 188,395 247,300 221,755 934 Salaries payable 8,870 1,274 10,037 -
Interest payable 5,914 - - -
Leases payable - due within one year 159,172 - - -
Compensated absences - due within one year 43,101 6,134 42,640 - Claims payable - due within one year - 2,000,747 - -
Total current liabilities 405,452 2,255,455 274,432 934 Noncurrent liabilities:

Leases payable - due in more than one year 167,200 - - - Claims payable - due within one year - 9,291,253 - -
Total noncurrent liabilities 167,200 9,291,253 - -
Total liabilities 11,546,708 572,652 274,432 934

NET POSITION
Net investment in capital assets 117,613 - 30,319 33,322 Restricted for debt service 10,334 - - -
Unrestricted (deficit) (127,872) 5,677,317 1,428,897 584,062 Total net position (deficit) $ 5,677,317 75 $ 1,459,216 $ 617,384 $ June 30, 2023
All Internal Service Funds
Combining Statement of Net Position
City of National City
128 Page 1080 of 1135
Tele- Motor Vehicle
communications Vehicle Replacement
Revolving Services Reserve Total
ASSETS
Current assets:

Cash and investments 14,623 $ 936,771 $ 5,507,575 $ 25,947,541 $ Accounts receivable - - - 61,565
Prepaid items and deposits - - - 80,621
Total current assets 14,623 936,771 5,507,575 26,089,727 Noncurrent assets:

Restricted cash and investments with fiscal agents - - - 10,334 Capital assets, net - - 3,885,615 4,393,241
Total noncurrent assets - - 3,885,615 4,403,575
Total assets 936,771 14,623 9,393,190 30,493,302

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities - 76,052 400,548 1,134,984 Salaries payable - 1,845 - 22,026
Interest payable - - - 5,914
Leases payable - due within one year - - - 159,172
Compensated absences - due within one year - 49,577 - 141,452 Claims payable - due within one year - - - 2,000,747
Total current liabilities - 127,474 400,548 3,464,295
Noncurrent liabilities:

Leases payable - due in more than one year - - - 167,200 Claims payable - due within one year - - - 9,291,253
Total noncurrent liabilities - - - 9,458,453
Total liabilities 127,474 - 400,548 12,922,748

NET POSITION
Net investment in capital assets - - 3,885,615 4,066,869 Restricted for debt service - - - 10,334
Unrestricted (deficit) 14,623 809,297 5,107,027 13,493,351 Total net position (deficit) $ 809,297 14,623 $ 8,992,642 $ 17,570,554 $ City of National City
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2023
129 Page 1081 of 1135
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
OPERATING REVENUES:

Charges for services 3,072,029 $ 4,106,086 $ 2,733,891 $ - $ Other - 31,592 - -
Total operating revenues 4,137,678 3,072,029 2,733,891 - OPERATING EXPENSES:

Operations and administration 1,023,522 4,023,891 1,026,414 16,045 Maintenance 1,714,062 79,961 1,794,080 -
Depreciation and amortization 150,749 - 63,899 2,339
Total operating expenses 4,103,852 2,888,333 2,884,393 18,384 Operating income (loss) 33,826 183,696 (150,502) (18,384) NONOPERATING REVENUES (EXPENSES):

Intergovernmental 21,020 - - -
Interest expense (21,344) - - -
Total nonoperating revenues (expenses) - (324) - -
Income (loss) before transfers 33,826 183,372 (150,502) (18,384) TRANSFERS:

Transfers in 48,000 - - -
Total transfers - 48,000 - -
Changes in net position 33,826 231,372 (150,502) (18,384) NET POSITION (DEFICIT):

Beginning of year (231,297) 5,643,491 1,609,718 635,768 End of year $ 5,677,317 75 $ 1,459,216 $ 617,384 $
For the Year Ended June 30, 2023
All Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position City of National City
130 Page 1082 of 1135
Tele- Motor Vehicle
communications Vehicle Replacement
Revolving Services Reserve Total
OPERATING REVENUES:

Charges for services - $ 1,366,307 $ 1,518,080 $ 12,796,393 $ Other - - - 31,592
Total operating revenues 1,366,307 - 1,518,080 12,827,985 OPERATING EXPENSES:

Operations and administration - 330,821 658,940 7,079,633 Maintenance - 947,721 20,364 4,556,188
Depreciation and amortization - - 753,466 970,453
Total operating expenses 1,278,542 - 1,432,770 12,606,274 Operating income (loss) 87,765 - 85,310 221,711
NONOPERATING REVENUES (EXPENSES):

Intergovernmental - - - 21,020
Interest expense - - - (21,344)
Total nonoperating revenues (expenses) - - - (324)
Income (loss) before transfers 87,765 - 85,310 221,387
TRANSFERS:

Transfers in - - 430,293 478,293
Total transfers - - 430,293 478,293
Changes in net position 87,765 - 515,603 699,680
NET POSITION (DEFICIT):

Beginning of year 14,623 721,532 8,477,039 16,870,874
End of year $ 809,297 14,623 $ 8,992,642 $ 17,570,554 $ 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, 2023
131 Page 1083 of 1135
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from other funds 3,072,029 $ 4,106,086 $ 2,733,891 $ - $ Cash payments for goods and services (3,008,230) (3,707,820) (2,768,411) (15,111) Other operating revenues - 31,592 - -
Net cash provided by (used in)
operating activities 429,858 63,799 (34,520) (15,111)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Principal paid on capital lease (151,532) - - -
Acquisition of capital assets - - - (35,661)
Net cash (used in) capital and
related financing activities - (172,875) - (35,661)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Amounts received from other agencies 21,020 - - -
Transfers in 48,000 - - -
Net cash provided by (used in) noncapital
financing activities - 69,020 - -
Net change in cash and cash equivalents 429,858 (40,056) (34,520) (50,772) CASH AND CASH EQUIVALENTS:

Beginning of year 125,697 16,732,602 1,700,329 635,768
End of year $ 17,162,460 85,641 $ 1,665,809 $ 584,996 $

RECONCILIATION TO STATEMENT OF
NET POSITION:

Cash and investments 75,307 $ 17,162,460 $ 1,665,809 $ 584,996 $ Restricted cash and investments with fiscal agents 10,334 - - - Total cash and cash equivalents $ 17,162,460 85,641 $ 1,665,809 $ 584,996 $ For the Year Ended June 30, 2023
All Internal Service Funds
Combining Statement of Cash Flows
City of National City
132 Page 1084 of 1135
Tele- Motor Vehicle
communications Vehicle Replacement
Revolving Services Reserve Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from other funds - $ 1,366,307 $ 1,518,080 $ 12,796,393 $ Cash payments for goods and services - (1,276,261) (525,376) (11,301,209) Other operating revenues - - - 31,592
Net cash provided by (used in)
operating activities 90,046 - 992,704 1,526,776

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Principal paid on capital lease - - - (151,532)
Acquisition of capital assets - - (401,384) (437,045)
Net cash (used in) capital and
related financing activities - - (401,384) (609,920)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Amounts received from other agencies - - - 21,020
Transfers in - - 430,294 478,294
Net cash provided by (used in) noncapital
financing activities - - 430,294 499,314
Net change in cash and cash equivalents 90,046 - 1,021,614 1,416,170 CASH AND CASH EQUIVALENTS:

Beginning of year 14,623 846,725 4,485,961 24,541,705
End of year $ 936,771 14,623 $ 5,507,575 $ 25,957,875 $

RECONCILIATION TO STATEMENT OF
NET POSITION:

Cash and investments 14,623 $ 936,771 $ 5,507,575 $ 25,947,541 $ Restricted cash and investments with fiscal agents - - - 10,334 Total cash and cash equivalents $ 936,771 14,623 $ 5,507,575 $ 25,957,875 $ City of National City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2023
133 Page 1085 of 1135
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) 183,696 $ 33,826 $ (150,502) $ (18,384) $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation and amortization 150,749 - 63,899 2,339
Changes in operating assets and liabilities:

Prepaids and deposits (43,101) - - -
Accounts payable and accrued liabilities (229,241) 69,741 47,752 934 Salaries payable (10,265) (781) 26 -
Compensated absences 11,961 1,072 4,305 -
Claims payable - 326,000 - -
Total adjustments (119,897) 396,032 115,982 3,273
Net cash provided by (used in)
operating activities $ 429,858 63,799 $ (34,520) $ (15,111) $ For the Year Ended June 30, 2023
City of National City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
134 Page 1086 of 1135
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) - $ 87,765 $ 85,310 $ 221,711 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation and amortization - - 753,466 970,453
Changes in operating assets and liabilities:

Prepaids and deposits - - - (43,101)
Accounts payable and accrued liabilities - (6,477) 153,928 36,637 Salaries payable - (5,763) - (16,783)
Compensated absences - 14,521 - 31,859
Claims payable - - - 326,000
Total adjustments - 2,281 907,394 1,305,065
Net cash provided by (used in)
operating activities $ 90,046 - $ 992,704 $ 1,526,776 $ For the Year Ended June 30, 2023
City of National City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
135 Page 1087 of 1135
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BASIC FINANCIAL STATEMENTS
136 Page 1088 of 1135

STATISTICAL SECTION
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CITY OF NATIONAL CITY, CALIFORNIA

STATISTICAL SECTION
JUNE 30, 2023
Financial Trends Page
Net Position by Component 140
Changes in Net Position 142
Fund Balances of Governmental Funds 146
Changes in Fund Balances of Government Funds 148
Revenue Capacity
Assessed Value and Actual Value of Taxable Property 150 2022/23 Use Category Summary 152
Property Tax Dollars Breakdown Pie Chart 153
Taxable Property Values 155
Taxable Sales by Category 156
Property Tax Levies and Collections 158
Direct and Overlapping Property Tax Rates 160
Principal Property Tax Payers 162
Single Family Residential Full Value Sales 163
Top 25 Sales Tax Producers 165
Debt Capacity
Ratios of Outstanding Debt by Type 166
Direct and Overlapping Debt 168
Net Taxable Assessed Value History 169
Legal Debt Margin Information 170
Pledged Revenue Coverage 172
Demographic and Economic Information
Demographic and Economic Statistics 175
Operating Information
Full-time Equivalent City Government Employees by Function/Program 176 Operating Indicators by Function/Program 178
Capital Asset Statistics by Function/Program 180
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. 139 Page 1091 of 1135
2014 2015 2016 2017 2018
Governmental Activities:

Net Investment in
Capital Assets 108,881,192 $ 120,377,947 $ 134,444,245 $ 140,128,868 $ 141,748,074 $ Restricted for:

General Services 25,690,372 24,671,923 29,511,338 17,830,592 16,441,482 Community Development 4,522,562 5,348,413 3,448,959 1,413,792 283,394 Public Safety - - - 1,566,498 1,472,665
Transportation - - - 2,279,981 1,985,811
Housing - - - 8,450,433 8,980,034
Debt Service 1,691,931 1,676,222 1,845,117 1,753,076 1,681,688 Capital projects 2,769,086 2,193,169 942,285 840,156 721,171 Investment in Section 115 trust - - - - -
Unrestricted (deficit) 40,409,653 (34,896,708) (26,157,042) (31,330,173) (33,783,858) Total governmental activities net position 183,964,796 $ 119,370,966 $ 144,034,902 $ 142,933,223 $ 139,530,461 $ Business-type Activities:

Net Investment in
Capital Assets 4,725,523 $ 4,926,410 $ 4,905,110 $ 4,995,791 $ 5,003,945 $ Restricted
Community Development - - - - -
Public Safety - - - 1,422,433 1,514,475
Transportation - - - - -
Culture and Leisure - - - - -
Housing - - - - -
Debt Service 2,121,988 1,876,125 2,031,385 763,085 818,678 Unrestricted 4,502 98,698 99,478 (13,016) 22,571
Total business-type activities net position 6,852,013 $ 6,901,233 $ 7,035,973 $ 7,168,293 $ 7,359,669 $ Primary Government:

Net Investment in
Capital Assets 113,606,715 125,304,357 139,349,355 145,124,659 146,752,019 Restricted 36,795,939 35,765,852 37,779,084 36,320,046 33,899,398 Unrestricted 40,414,155 (34,798,010) (26,057,564) (31,343,189) (33,761,287) Total primary government net position 190,816,809 $ 126,272,199 $ 151,070,875 $ 150,101,516 $ 146,890,130 $ City of National City
Net Position by Component
Fiscal Year
Last Ten Fiscal Years
(accrual basis of accounting)
Source: City of National City Annual Comprehensive Financial Reports or financial statements 140 Page 1092 of 1135
2019 2020 2021 2022 2023
Governmental Activities:

Net Investment in
Capital Assets 147,820,375 $ 155,530,504 $ 161,450,929 $ 161,453,603 $ 170,589,264 $ Restricted for:

General Services 17,345,785 20,040,951 20,231,609 23,905,988 25,656,844 Community Development 169,573 19,999 20,000 20,000 20,000 Public Safety 1,296,186 221,853 231,802 206,028 208,446 Transportation 1,157,623 13 1,245,013 13 13
Housing 74,709,334 75,199,504 75,139,133 63,427,755 66,552,724 Debt Service 1,667,147 1,630,317 1,025,150 962,877 958,924 Capital projects 1,743,976 2,039,987 2,336,049 2,775,920 3,035,942 Investment in Section 115 trust 1,749,740 1,749,740 10,813,351 9,526,733 9,936,427 Unrestricted (deficit) (41,622,749) (48,893,956) (57,801,974) (41,476,853) (40,208,465) Total governmental activities net position 206,036,990 $ 207,538,912 $ 214,691,062 $ 220,802,064 $ 236,750,119 $ Business-type Activities:

Net Investment in
Capital Assets - $ - $ - $ - $ - $
Restricted
Community Development - - - - -
Public Safety - - - - -
Transportation - - - - -
Culture and Leisure - - - - -
Housing - - - - -
Debt Service - - - - -
Unrestricted - - - - -
Total business-type activities net position - $ - $ - $ - $ - $ Primary Government:

Net Investment in
Capital Assets 147,820,375 155,530,504 162,111,040 161,453,603 170,589,264 Restricted 99,839,364 100,902,364 111,040,107 100,825,314 106,369,320 Unrestricted (41,622,749) (48,893,956) (57,801,974) (41,476,853) (40,208,465) Total primary government net position 206,036,990 $ 207,538,912 $ 215,349,173 $ 220,802,064 $ 236,750,119 $ Fiscal Year
City of National City
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Source: City of National City Annual Comprehensive Financial Reports or financial statements 141 Page 1093 of 1135
2014 2015 2016 2017 2018
Expenses:

Governmental Activities:

General government 5,240,947 $ 6,299,372 $ 6,237,858 $ 7,379,307 $ 15,307,497 $ Public safety 29,045,583 31,522,488 31,293,361 34,007,632 39,597,743 Transportation 6,315,524 6,737,292 8,605,631 8,925,351 8,076,078 Community development 11,669,866 11,603,528 11,812,563 13,560,523 12,884,161 Health 7,026,857 7,416,697 7,499,719 8,102,830 7,467,338 Culture and leisure 6,712,036 6,349,578 7,188,896 8,129,529 8,521,220 Interest and fiscal charges 439,367 407,194 308,808 243,832 414,353 Depreciation expense (unallocated) - - - - -
Total governmental activities expenses 66,450,180 $ 70,336,149 $ 72,946,836 $ 80,349,004 $ 92,268,390 $ Business-type Activities:

Transportation Development Act1 $ - - $ - $ - $ - $
Community development commission - - - - -
Kimball Towers 1,356,385 1,251,377 1,160,095 1,166,521 1,187,232 Morgan Towers 1,130,218 1,078,546 1,113,885 1,141,607 1,102,742 Total business-type activities expenses 2,486,603 $ 2,329,923 $ 2,273,980 $ 2,308,128 $ 2,289,974 $ Total primary government expenses 68,936,783 $ 72,666,072 $ 75,220,816 $ 82,657,132 $ 94,558,364 $ Program Revenue:

Government Activities:

Charges for services:

General government 2,371,861 $ 3,101,468 $ 5,081,812 $ 2,697,690 $ 2,543,350 $ Public safety 3,150,630 3,807,824 2,681,493 2,704,952 3,393,625 Transportation 2,195,535 1,863,599 1,344,988 1,218,156 1,640,930 Community development 2,994,274 3,260,501 1,908,755 2,105,289 3,320,354 Health 7,534,320 9,522,136 8,363,190 8,819,322 8,624,774 Culture and leisure 199,493 353,740 306,675 631,597 676,015 Operating grants and contributions 15,818,335 12,508,517 13,295,661 15,280,776 14,306,662 Capital grants and contributions 6,284,789 11,399,349 7,299,398 3,878,546 6,414,610 Total governmental activities program revenue 40,549,237 $ 45,817,134 $ 40,281,972 $ 37,336,328 $ 40,920,320 $ Business-type Activities:

Charges for services:

Transportation Development Act - $ - $ - $ - $ - $
Community development commission - - - - -
Kimball Towers 1,096,559 1,101,514 1,124,578 1,130,543 1,127,607 Morgan Towers 1,244,129 1,260,181 1,266,441 1,289,180 1,329,610 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities program revenue 2,340,688 $ 2,361,695 $ 2,391,019 $ 2,419,723 $ 2,457,217 $ Total primary government program revenue 42,889,925 $ 48,178,829 $ 42,672,991 $ 39,756,051 $ 43,377,537 $ Net Revenues (Expenses):

Governmental activities (25,900,943) (24,519,015) (32,664,864) (43,012,676) (51,348,070) Business-type activities (145,915) 31,772 117,039 111,595 167,243 Total Net Revenues (Expenses) (26,046,858) $ (24,487,243) $ (32,547,825) $ (42,901,081) $ (51,180,827) $ (accrual basis of accounting)
City of National City
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Source: City of National City Annual Commprehensive Financial Reports or financial statements 142 Page 1094 of 1135
2019 2020 2021 2022 2023
Expenses:

Governmental Activities:

General government 14,474,787 $ 13,745,988 $ 10,868,545 $ 20,793,460 $ 12,467,497 $ Public safety 41,216,052 45,669,420 46,808,349 38,710,643 50,093,848 Transportation 8,479,861 8,262,579 8,503,284 8,358,045 9,619,556 Community development 13,521,091 15,463,076 16,056,965 16,113,804 17,168,341 Health 8,160,870 8,229,336 8,167,924 7,726,217 9,301,026 Culture and leisure 7,686,697 7,617,459 8,795,715 8,428,049 9,651,503 Interest and fiscal charges 380,597 398,181 528,873 2,298,786 3,367,717 Depreciation expense (unallocated) - - - - -
Total governmental activities expenses 93,919,955 $ 99,386,039 $ 99,729,655 $ 102,429,004 $ 111,669,488 $ Business-type Activities:

Transportation Development Act1 $ - - $ - $ - $ - $
Community development commission - - - - -
Kimball Towers 945,180 - - - -
Morgan Towers 787,266 - - - -
Total business-type activities expenses 1,732,446 $ - $ - $ - $ - $ Total primary government expenses 95,652,401 $ 99,386,039 $ 99,729,655 $ 102,429,004 $ 111,669,488 $ Program Revenue:

Government Activities:

Charges for services:

General government 1,811,719 $ 1,633,484 $ 2,035,702 $ 6,476,152 $ 14,084,900 $ Public safety 2,911,464 4,588,977 3,833,783 3,455,987 3,577,172 Transportation 2,556,059 2,559,252 2,559,581 2,796,202 2,983,306 Community development 4,461,949 5,390,111 3,885,598 3,235,575 3,216,282 Health 8,551,905 11,046,138 10,557,839 11,814,786 13,905,625 Culture and leisure 477,370 613,722 484,207 577,948 320,066 Operating grants and contributions 14,908,491 16,658,135 17,685,441 18,456,671 18,456,518 Capital grants and contributions 4,201,520 4,465,126 6,109,734 3,514,394 7,090,261 Total governmental activities program revenue 39,880,477 $ 46,954,945 $ 47,151,885 $ 50,327,715 $ 63,634,130 $ Business-type Activities:

Charges for services:

Transportation Development Act - $ - $ - $ - $ - $
Community development commission - - - - -
Kimball Towers 1,256,346 - - - -
Morgan Towers 1,017,766 - - - -
Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities program revenue 2,274,112 $ - $ - $ - $ - $ Total primary government program revenue 42,154,589 $ 46,954,945 $ 47,151,885 $ 50,327,715 $ 63,634,130 $ Net Revenues (Expenses):

Governmental activities (54,039,478) (52,431,094) (52,577,770) (52,101,289) (48,035,358) Business-type activities 541,666 - - - -
Total Net Revenues (Expenses) (53,497,812) $ (52,431,094) $ (52,577,770) $ (52,101,289) $ (48,035,358) $ Fiscal Year
City of National City
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Source: City of National City Annual Commprehensive Financial Reports or financial statements 143 Page 1095 of 1135
2014 2015 2016 2017 2018
General Revenue and Other Changes in Net Position:

Governmental Activities:

Taxes:

Property taxes 9,908,109 $ 10,301,592 $ 10,293,634 $ 11,948,882 $ 12,721,058 $ Sales taxes 25,586,661 27,095,666 29,170,512 29,284,869 30,084,675 Franchise taxes 1,718,023 1,902,082 1,922,723 1,856,039 1,910,053 Motor vehicle license 27,056 - - - -
Transient occupancy taxes 1,082,339 1,383,793 1,611,788 1,597,957 1,660,800 Utilities tax 825,388 818,820 867,488 886,455 711,635
Investment earnings 459,019 304,655 553,184 361,077 836,038 Other miscellaneous revenues - - 1,864 - 21,049
Gain (loss) on sale of assets (268,224) - - - -
Transfer to Successor Agency - - (826,577) - -
Special items - - 13,734,184 - -
Total governmental activities 39,338,371 $ 41,806,608 $ 57,328,800 $ 45,935,279 $ 47,945,308 $ Business-type Activities:

Investment earnings 2,520 $ 2,579 $ 3,678 $ 5,621 $ 9,390 $ Other misc 15,353 14,869 14,023 15,464 14,743
Total business-type activities 17,873 $ 17,448 $ 17,701 $ 21,085 $ 24,133 $ Total primary government 39,356,244 $ 41,824,056 $ 57,346,501 $ 45,956,364 $ 47,969,441 $ Changes in Net Position:

Governmental activities 13,437,428 17,287,593 24,663,936 2,922,603 (3,402,762) Business-type activities (128,402) 49,220 134,740 132,320 191,376 Total Primary Government 13,309,026 $ 17,336,813 $ 24,798,676 $ 3,054,923 $ (3,211,386) $ Fiscal Year
(accrual basis of accounting)
City of National City
Changes in Net Position (Continued)
Last Ten Fiscal Years
Source: City of National City Annual Comprehensive Financial Reports or financial statements 144 Page 1096 of 1135
2019 2020 2021 2022 2023
General Revenue and Other Changes in Net Position:

Governmental Activities:

Taxes:

Property taxes 14,340,418 $ 15,975,053 $ 16,266,505 $ 16,753,096 $ 17,559,333 $ Sales taxes 33,196,667 31,268,711 36,415,641 40,777,746 38,678,895 Franchise taxes 1,966,728 2,330,697 2,104,436 2,131,159 2,490,691 Motor vehicle license - - - - -
Transient occupancy taxes 1,774,843 1,522,714 1,600,549 1,862,718 2,488,614 Utilities tax 708,451 678,663 737,435 793,653 935,316
Investment earnings 2,297,242 2,344,528 2,339,978 (3,007,949) 1,358,614 Other miscellaneous revenues 45,017 65,010 156,976 97,010 194,882 Gain (loss) on sale of assets - - - - -
Transfer to Successor Agency - - - - -
Special items - - - - -
Total governmental activities 54,329,366 $ 54,185,376 $ 59,621,520 $ 59,407,433 $ 63,706,345 $ Business-type Activities:

Investment earnings 10,038 $ - $ - $ - $ - $
Other misc 11,378 - - - -
Total business-type activities 21,416 $ - $ - $ - $ - $ Total primary government 54,350,782 $ 54,185,376 $ 59,621,520 $ 59,407,433 $ 63,706,345 $ Changes in Net Position:

Governmental activities 66,506,529 1,501,832 7,043,751 7,383,212 15,670,987 Business-type activities (7,359,669) - - - -
Total Primary Government 59,146,860 $ 1,501,832 $ 7,043,751 $ 7,383,212 $ 15,670,987 $ Fiscal Year
(accrual basis of accounting)
City of National City
Changes in Net Position (Continued)
Last Ten Fiscal Years
Source: City of National City Annual Comprehensive Financial Reports or financial statements 145 Page 1097 of 1135
2014 2015 2016 2017 2018
General Fund:

Nonspendable 4,952,830 $ 4,963,916 $ 10,766,098 $ 9,963,816 $ 9,966,729 $ Restricted 611,780 590,998 754,913 616,253 555,168
Committed 9,085,066 9,085,066 11,585,066 11,585,066 11,085,066 Assigned 15,042,191 16,065,736 14,792,381 14,325,683 15,772,642 Unassigned 7,797,176 10,266,365 12,166,732 11,903,272 12,731,293 Total General Fund 37,489,043 $ 40,972,081 $ 50,065,190 $ 48,394,090 $ 50,110,898 $ All Other Governmental Funds:

Nonspendable 7,926,759 7,927,027 - 1,636,570 129,469
Restricted 31,713,774 31,005,844 36,333,305 32,015,860 30,928,607 Committed - - - - -
Assigned 733,384 706,558 - - -
Unassigned (deficit) (8,165,223) (5,368,938) (821,959) (985,588) (1,910,674) Total all other governmental funds 32,208,694 $ 34,270,491 $ 35,511,346 $ 32,666,842 $ 29,147,402 $ (modified accrual basis of accounting)
Fiscal Year
City of National City
Fund Balances of Government Funds
Last Ten Fiscal Years
Source: City of National City Annual Comprehensive Financial Reports or financial statements 146 Page 1098 of 1135
2019 2020 2021 2022 2023
General Fund:

Nonspendable 5,010,267 $ 3,926,499 $ 3,964,435 $ 3,966,629 $ 4,094,518 $ Restricted 2,304,908 2,304,908 10,833,351 9,546,733 9,956,427 Committed 15,150,517 15,150,517 14,945,000 15,680,000 15,680,000 Assigned 12,865,120 12,865,120 7,193,969 8,400,718 9,604,056 Unassigned 13,673,543 14,433,312 13,956,296 19,392,455 23,040,220 Total General Fund 49,004,355 $ 48,680,356 $ 50,893,051 $ 56,986,535 $ 62,375,221 $ All Other Governmental Funds:

Nonspendable 25,805 - 1,270,805 1,270,805 25,805
Restricted 97,534,456 98,597,366 98,961,756 91,278,581 97,320,165 Committed - - -
Assigned - - -
Unassigned (deficit) (21,761) (45,744) (747,514) (210,125) (875,705) Total all other governmental funds 97,538,500 $ 98,551,622 $ 99,485,047 $ 92,339,261 $ 96,470,265 $ Fiscal Year
(modified accrual basis of accounting)
City of National City
Fund Balances of Government Funds (Continued)
Last Ten Fiscal Years
Source: City of National City Annual Comprehensive Financial Reports or financial statements 147 Page 1099 of 1135
2014 2015 2016 2017 2018
Revenues:

Taxes 41,386,311 $ 43,573,589 $ 45,474,959 $ 47,058,901 $ 48,968,671 $ Licenses and permits 1,099,929 1,567,617 1,122,139 1,280,675 1,879,379 Fines and forfeitures 1,111,961 885,722 646,370 642,972 663,205 Interest and rents - - - -
Use of money and property 1,122,149 1,073,543 1,417,606 1,035,112 1,393,733 Intergovernmental 23,571,850 26,791,254 21,381,584 20,051,795 22,671,850 Charges for services 9,531,741 10,024,879 10,734,789 11,721,905 11,010,813 Other revenues 1,651,370 4,387,660 3,925,718 2,552,556 2,675,725 Total revenues 79,475,311 $ 88,304,264 $ 84,703,165 $ 84,343,916 $ 89,263,376 $ Expenditures:

Current:

General government 5,062,227 $ 5,403,805 $ 6,986,812 $ 5,673,456 $ 8,755,798 $ Public safety 27,687,841 29,100,717 31,785,904 34,754,008 37,535,638 Transportation 3,673,470 3,941,747 4,546,976 4,687,611 4,731,634 Community development 11,235,322 11,173,792 11,752,502 12,909,844 16,801,816 Health 6,994,103 7,179,865 7,587,801 8,227,149 7,544,106 Culture and leisure 6,057,037 5,306,518 6,239,067 7,351,974 4,186,345 Capital outlay 20,361,948 17,176,753 16,737,745 12,938,379 14,560,697 Debt service:

Principal 1,376,871 1,142,186 1,150,824 1,310,893 1,552,162 Interest and fiscal charges 477,061 427,209 364,723 243,329 387,857 Cost of issuance - - - - -
Total expenditures 82,925,880 $ 80,852,592 $ 87,152,354 $ 88,096,643 $ 96,056,053 $ Excess (deficiency) of revenues
over (under) expenditures (3,450,569) 7,451,672 (2,449,189) (3,752,727) (6,792,677) Other Financing Sources (uses)
Issuance of long-term debt - $ 554,604 $ - $ - $ 5,523,602 $ Proceeds from sale of property 7,052,194 - - 58,474 -
Proceeds from debt issuance - - - - -
Gain on sale of land held for resale - - - 65,966 -
Discount on debt issuance - - - - -
Cost of debt issuance - - - - -
Pass-through payments to other agencies - - - (705,115) - Transfers in 5,131,249 1,765,336 4,903,988 2,932,166 6,913,968 Transfers out (4,671,639) (4,277,182) (3,078,442) (3,114,366) (7,447,525) Transfers to Successor Agency - - (826,577) - -
Total other financing sources (uses) 7,511,804 $ (1,957,242) $ 998,969 $ (762,875) $ 4,990,045 $ Extraordinary/Special Items - - 11,784,182 - -
Net change in fund balances 4,061,235 $ 5,494,430 $ 10,333,962 $ (4,515,602) $ (1,802,632) $ Debt services as a percentage of
noncapital expenditures 2.96% 2.46% 2.15% 2.07% 2.38%
Fiscal Year
City of National City
Changes in Fund Balances of Government Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: City of National City Annual Comprehensive Financial Reports or financial statements 148 Page 1100 of 1135
2019 2020 2021 2022 2023
Revenues:

Taxes 53,534,414 $ 53,675,932 $ 59,011,168 $ 63,926,579 $ 65,411,402 $ Licenses and permits 1,527,378 2,730,712 1,118,924 1,565,077 1,544,101 Fines and forfeitures 3,006,250 3,008,937 520,640 1,199,213 875,020 Interest and rents
Use of money and property 3,125,731 3,623,029 3,628,887 129,417 3,846,605 Intergovernmental 20,790,012 22,985,841 26,719,202 27,831,520 30,500,077 Charges for services 10,630,010 12,927,695 13,650,614 14,870,478 22,772,165 Other revenues 1,045,184 2,241,100 1,417,104 1,002,913 2,374,206 Total revenues 93,658,979 $ 101,193,246 $ 106,066,539 $ 110,525,197 $ 127,323,576 $ Expenditures:

Current:

General government 10,353,580 $ 10,719,672 $ 11,352,261 $ 38,261,566 $ 11,613,971 $ Public safety 37,352,792 39,308,683 42,319,159 98,713,134 44,864,093 Transportation 5,068,343 4,746,320 5,050,345 4,933,856 6,092,746 Community development 13,557,554 14,192,654 16,081,378 16,107,479 17,158,360 Health 8,158,082 8,168,245 8,227,352 7,874,798 9,302,728 Culture and leisure 7,066,530 7,029,297 8,216,927 7,880,999 8,997,200 Capital outlay 9,059,110 13,561,929 9,245,317 18,407,406 11,868,336 Debt service:

Principal 1,060,732 1,077,616 1,066,163 1,128,518 3,769,474 Interest and fiscal charges 385,960 419,868 534,570 539,829 3,735,753 Cost of issuance - - - - -
Total expenditures 92,062,683 $ 99,224,284 $ 102,093,472 $ 193,847,585 $ 117,402,661 $ Excess (deficiency) of revenues
over (under) expenditures 1,596,296 1,968,962 3,973,067 (83,322,388) 9,920,915 Other Financing Sources (uses)
Issuance of long-term debt - $ - $ - $ - $ - $
Proceeds from sale of property - (589,700) 3,890 - -
Proceeds from debt issuance - - - 83,895,000 -
Gain on sale of land held for resale - - - - -
Discount on debt issuance - - - (142,838) -
Cost of debt issuance - - - (492,162) -
Pass-through payments to other agencies - (631,285) - (2,017) - Transfers in 73,514,649 2,045,690 2,623,099 2,529,757 5,117,844 Transfers out (7,826,390) (2,050,691) (3,336,851) (3,440,586) (5,596,137) Transfers to Successor Agency - - - - -
Total other financing sources (uses) 65,688,259 $ (1,225,986) $ (709,862) $ 82,347,154 $ (478,293) $ Extraordinary/Special Items
Net change in fund balances 67,284,555 $ 742,976 $ 3,263,205 $ (975,234) $ 9,442,622 $ Debt services as a percentage of
noncapital expenditures 1.74% 1.75% 1.72% 0.95% 7.11%
City of National City
Changes in Fund Balances of Government Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
Source: City of National City Annual Comprehensive Financial Reports or financial statements 149 Page 1101 of 1135
Category 2014 2015 2016 2017 2018
Secured:

Residential Property 1,547,773,659 $ 1,665,406,317 $ 1,717,835,128 $ 1,805,981,573 $ 2,005,909,205 $ Commercial Property 971,070,608 992,982,224 1,026,863,991 1,082,223,930 1,141,618,921 Industrial Property 372,617,155 360,527,549 345,186,211 351,325,363 366,288,263 Institutional Property 46,107,183 46,316,498 47,648,063 48,280,512 50,276,110 Recreational Property 25,828,782 25,827,429 24,799,504 28,998,288 30,262,982 Vacant Land 61,320,039 60,685,749 66,017,188 66,452,827 69,545,186 Total Secured 3,024,717,426 3,151,745,766 3,228,350,085 3,383,262,493 3,663,900,667 Unsecured 224,847,953 197,869,900 208,192,396 200,687,180 209,840,073 Cross Reference - - - - -
SBE Nonunitary 5,224,473 5,224,473 4,088,740 4,088,640 4,088,640 Total Taxable Assessed Value 3,254,789,852 $ 3,354,840,139 $ 3,440,631,221 $ 3,588,038,313 $ 3,877,829,380 $ Total Direct Tax Rate 0.24559 0.20747 0.20813 0.19685 0.19587 Note: Exempt values not included in totals.

Fiscal Year
City of National City
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
Source: HdL, San Diego County Assessor 1999/00- 2013/14 Combined Tax Rolls 150 Page 1102 of 1135
Category 2019 2020 2021 2022 2023
Secured:

Residential Property 2,124,432,627 $ 2,247,520,548 $ 2,430,438,477 $ 2,580,200,605 $ 2,771,754,153 $ Commercial Property 1,177,390,190 1,235,674,912 1,285,966,353 1,274,713,181 1,317,168,871 Industrial Property 370,233,052 293,358,933 301,374,562 320,252,647 352,597,712 Institutional Property 50,172,874 51,166,295 52,189,614 53,238,122 55,083,915 Recreational Property 30,008,253 6,115,328 6,133,095 7,224,152 7,696,478 Vacant Land 72,360,079 74,595,548 90,641,736 91,897,780 98,768,253 Total Secured 3,824,597,075 3,908,431,564 4,166,743,837 4,327,526,487 4,603,069,382 Unsecured 228,175,189 233,956,577 244,900,101 203,990,721 238,648,256 Cross Reference - 132,191,188 191,677,047 167,408,698 136,003,676 SBE Nonunitary 4,429,496 4,429,496 4,429,496 4,429,496 3,238,280 Total Taxable Assessed Value 4,057,201,760 $ 4,279,008,825 $ 4,607,750,481 $ 4,703,355,402 $ 4,980,959,594 $ Total Direct Tax Rate 0.19462 0.19792 0.19269 0.19630 0.19222 Note: Exempt values not included in totals.

Fiscal Year
City of National City
Assessed Value and Actual Value of Taxable Property (Continued) Last Ten Fiscal Years
Source: HdL, San Diego County Assessor 1999/00- 2013/14 Combined Tax Rolls 151 Page 1103 of 1135
City of National City
2022/23 Use Category Summary
(Percentages)
Source: San Diego County Assessor 2022/23 Combined Tax Rolls 152 Page 1104 of 1135
Source: HdL, San Diego County Assessor 2022/23 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
153 Page 1105 of 1135
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154 Page 1106 of 1135
Secured Nonunitary Utilities Unsecured
Parcels 9,725 4 1,471
TRAs 40 2 20
Values
Land 2,232,567,725 $ 3,238,280 $ - $
Improvements 2,879,350,481 - 89,118,046
Personal Property 2,738,715 - 157,473,162
Fixtures - - -
Aircraft - - -
Total Value 5,114,656,921 $ 3,238,280 $ 246,591,208 $
Exemptions
Real Estate 375,584,403 $ - $ 1,088,838 $
Personal Property - - 6,854,114
Fixture - - -
Aircraft - - -
Homeowners 27,483,917 - 168,000
Total Exemptions 375,584,403 $ - $ 7,942,952 $
Total Net Value $ 3,238,280 4,739,072,518 $ 238,648,256 $ Combined Values Total
Total Values 5,364,486,409 $
Total Exemptions 383,527,355 $
Net Total Values 4,980,959,054 $
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 2022/23 Combined Tax Rolls City of National City
2022/23 Roll Summary
Taxable Property Values
Source: San Diego County Assessor 2013/14 Combined Tax Rolls 155 Page 1107 of 1135
2013 2014 2015 2016 2017
Apparel Stores 133,242 $ 134,000 $ 137,438 $ 143,686 $ 146,387 $ General Merchandise 164,508 170,460 176,092 176,709 174,132 Food Stores 21,288 21,765 20,902 20,898 20,535
Eating and Drinking Places 139,756 149,337 164,434 176,118 182,938 Building Materials 31,812 38,945 57,163 68,846 92,298
Auto Dealers and Supplies 547,221 578,386 626,557 637,721 614,432 Service Stations 77,680 83,541 75,550 68,862 73,382
Other Retail Stores 152,666 160,718 168,234 171,814 172,705 All Other Outlets 289,955 95,148 104,666 107,171 113,387 Total 1,558,128 $ 1,432,300 $ 1,531,036 $ 1,571,825 $ 1,590,196 $ 2022 is the most current data set available for disclosure as of FY 2023 Calendar Year
(in thousands of dollars)
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.

City of National City
Taxable Sales by Category
Last Ten Calendar Years
Source: State of California Board of Equalization and The HdL Companies 156 Page 1108 of 1135
2018 2019 2020 2021 2022
Apparel Stores 150,713 $ 149,154 $ 92,392 $ 162,570 $ 159,423 $ General Merchandise 178,618 182,483 149,742 188,799 203,173 Food Stores 20,645 20,790 24,039 25,362 27,054
Eating and Drinking Places 201,294 218,605 185,031 237,049 259,799 Building Materials 102,775 80,121 93,025 123,588 124,013 Auto Dealers and Supplies 605,750 630,327 609,087 738,145 731,760 Service Stations 90,116 100,164 71,225 98,728 133,316
Other Retail Stores 168,929 167,150 146,043 185,196 177,684 All Other Outlets 105,250 128,427 100,646 572,471 593,645 Total 1,624,090 $ 1,677,221 $ 1,471,230 $ 2,331,908 $ 2,409,867 $ 2022 is the most current data set available for disclosure as of FY 2023 (in thousands of dollars)
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.

City of National City
Taxable Sales by Category (Continued)
Last Ten Calendar Years
Source: State of California Board of Equalization and The HdL Companies 157 Page 1109 of 1135
2014 2015 2016 2017 2018
Current Year Tax Levy $ 3,240,544 3,099,715 $ 3,205,191 $ 3,335,753 $ 3,619,238 $ Current Tax Collections 3,227,793 3,087,464 3,195,983 3,333,476 3,601,115 Percent of Levy Collected 99.60% 99.61% 99.71% 99.93% 99.50% Delinquent Tax Receivable 19,758 19,203 17,764 16,226 10,737 Delinquent Tax Collections 1,312 1,542 1,564 1,465 2,008 Total Tax Collections 3,089,006 $ 3,229,105 $ 3,197,547 $ 3,334,941 $ 3,603,123 $ Percent of Total Tax
Collections To Tax Levy 99.65% 99.65% 99.76% 99.98% 99.55% Outstanding Delinquent Taxes $ 31,197 29,912 $ 25,408 $ 17,038 $ 26,852 $ Percent of Delinquent Taxes
To Tax Levy 0.96% 0.96% 0.79% 0.51% 0.74%
City of National City
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Year
Source: San Diego County Property Tax Services
158 Page 1110 of 1135
2019 2020 2021 2022 2023
Current Year Tax Levy $ 3,896,676 3,687,359 $ 4,096,739 $ 4,233,369 $ 4,200,548 $ Current Tax Collections 3,890,504 3,667,444 4,082,104 4,221,118 4,191,427 Percent of Levy Collected 99.46% 99.84% 99.64% 99.71% 99.78% Delinquent Tax Receivable 16,741 16,840 16,816 16,976 18,734 Delinquent Tax Collections 1,868 1,948 2,650 2,256 2,205 Total Tax Collections 3,669,393 $ 3,892,372 $ 4,084,754 $ 4,223,374 $ 4,193,632 $ Percent of Total Tax
Collections To Tax Levy 99.51% 99.89% 99.71% 99.76% 99.84% Outstanding Delinquent Taxes $ 21,044 34,807 $ 28,801 $ 26,971 $ 25,650 $ Percent of Delinquent Taxes
To Tax Levy 0.94% 0.54% 0.70% 0.64% 0.61%
City of National City
Property Tax Levies and Collections (Continued)
Last Ten Fiscal Years
Fiscal Year
Source: San Diego County Property Tax Services
159 Page 1111 of 1135
Agency 2014 2015 2016 2017 2018
Basic Levy¹ 1.00000 1.00000 1.00000 1.00000 1.00000
Chula Vista Elementary 0.04631 0.04753 0.04301 0.04323 0.03594 Gen Bond National City-Prop N 11/04/14 Ser 2014A 0.00000 0.00000 0.03055 0.02867 0.02629 Metropolitan Water District 0.00000 0.00000 0.00000 0.00000 0.00000 National City Gen. Obligation Bonds 2002 Series A 0.01190 0.00960 0.00920 0.00880 0.00790 San Diego Community College Bond 0.04760 0.04381 0.03939 0.03912 0.03447 Southwestern Community College 0.03675 0.03582 0.03961 0.03856 0.04981 Sweetwater High Bond 0.05823 0.05407 0.05169 0.05162 0.05156 Total Direct & Overlapping² Tax Rates 1.20429 1.19433 1.21695 1.21350 1.20947 City's Share of 1% Levy Per Prop 13³ 0.17720 0.17720 0.17720 0.17720 0.17720 General Obligation Debt Rate 0.01190 0.00960 0.00920 0.00880 0.00880 Voter Approved City Debt Rate 0.01190 0.00960 0.00920 0.00880 0.00790 Redevelopment Authority Rate4 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rate5 0.24559 0.20747 0.20813 0.19685 0.19685 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. 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.

Fiscal Year
(Rate Per $100 of Taxable Value)
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.

City of National City
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Source: HdL, San Diego County Assessor 2004/05-2013/14 Tax Rate Tables 160 Page 1112 of 1135
Agency 2019 2020 2021 2022 2023
Basic Levy¹ 1.00000 1.00000 1.00000 1.00000 1.00000
Chula Vista Elementary 0.03917 0.03743 0.06455 0.06279 0.05049 Gen Bond National City-Prop N 11/04/14 Ser 2014A 0.01449 0.00000 0.00000 0.05092 0.05834 Metropolitan Water District 0.01022 0.00000 0.00000 0.00350 0.00350 National City Gen. Obligation Bonds 2002 Series A 0.00730 0.03129 0.03064 0.00000 0.05834 San Diego Community College Bond 0.03941 0.03801 0.03700 0.03699 0.03526 Southwestern Community College 0.04671 0.04482 0.02792 0.04854 0.04215 Sweetwater High Bond 0.05283 0.05159 0.04880 0.04611 0.06911 Total Direct & Overlapping² Tax Rates 1.21363 1.20664 1.21241 1.24885 1.25885 City's Share of 1% Levy Per Prop 13³ 0.17720 0.17720 0.17720 0.17720 0.17720 General Obligation Debt Rate 0.00730 0.00880 0.00000 0.00000 0.00000 Voter Approved Debt Rate 0.00730 0.00670 0.00590 0.00590 0.00572 Redevelopment Authority Rate4 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rate5 0.19462 0.19792 0.19269 0.19630 0.19222 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. 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. (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.

City of National City
Direct and Overlapping Property Tax Rates (Continued)
Last Ten Fiscal Years
Source: HdL, San Diego County Assessor 2004/05-2013/14 Tax Rate Tables 161 Page 1113 of 1135
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 275,066,424 $ 1 5.52% - - -
PASHA AUTOMOTIVE SERVICES 82,051,294 2 1.65% - - -
P V H R LLC 66,050,779 3 1.33% - - -
H G FENTON PROPERTY COMPANY 57,134,099 4 1.15% - - -
NATIONAL CITY INVESTMENT LP 46,753,363 5 0.94% - - -
COSTCO WHOLESALE CORPORATION 45,694,010 6 0.92% - - -
C A HAFFLEY INDUSTRIAL PARK (DE) LLC 43,500,000 7 0.87% - - - M G P X I U S PROPERTIES LLC 39,261,850 8 0.79% - - -
MPT OF PARADISE VALLEY LP 35,685,746 9 0.72% - - -
619 D AVENUE PARADISE LLC 31,955,375 10 0.64% - - -
CENTERMARK PROPERTIES INC - - - $ 1 8.42% 274,137,710
PASHA AUTOMOTIVE SERVICES - - - 2 3.17% 1,032,168,894
COSTCO WHOLESALE CORPORATION - - - 3 1.85% 60,158,236
P V H R LLC - - - 4 1.67% 54,274,656
ROIC CALIFORNIA LLC - - - 5 1.16% 37,768,000
MPT OF PARADISE VALLEY LP - - - 6 0.94% 30,753,071
DIXIELINE LUMBER COMPANY - - - 7 0.94% 30,715,583
FENTON N C PLLC - - - 8 0.93% 30,370,500
SWEETWATER ASSOCIATES LP - - - 9 0.74% 23,937,455
WALMART REAL ESTATE BUSINESS TRUST - - - 10 0.73% 23,780,746

WILLIAMS G W COMPANY
Top Ten Total 723,152,940 $ 14.52% 669,112,851 $ 20.56% City Total 4,980,959,054 $ 3,254,789,852 $
City of National City
Principal Property Tax Payers
Current Year and Nine Years Ago
2022/23 2013/14
Source: HdL, San Diego County Assessor 2013/14- 2022/2023 Combined Tax Rolls and the SBE Non Unitary Tax Rolls 162 Page 1114 of 1135
Year Full Value Sales Average Price Median Price Median % Change 2021 258 524,948 $ 550,000 $ 18.03%
2022 222 596,068 $ 621,250 $ 12.95%
2023 80 566,219 $ 588,500 $ -5.27%
City of National City
Sales Value History
Single Family Residential Full Value Sales (1/1/2021-6/30/2023) Source: San Diego County Recorder
163 Page 1115 of 1135
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164 Page 1116 of 1135
2022-23 2013-14
Business Name Business Category Business Name Business Category Arco Service Stations Arco Service Stations
Ball Mitsubishi New Motor Vehicle Dealers Arco AM PM Service Stations Burlington Family Apparel Ball Mitsubishi New Motor Vehicle Dealers Calportland Company Contractors Frank Hyundai New Motor Vehicle Dealers Chevron Circle K Service Stations Frank Subaru New Motor Vehicle Dealers Coronado Beach Harley Davidson Boats/Motorcycles 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 Mor Furniture 4 Less Home Furnishings Hd Supply White Cap Building Materials Mossy Nissan New Motor Vehicle Dealers JC Penny Department Stores Nordstrom Rack Department Stores Macys Department Stores One Source Distributors Electrical Equipment Mossy Nissan New Motor Vehicle Dealers Perry Chrysler Dodge Jeep Ram New Motor Vehicle Dealers Nordtrom Rack Department Stores 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 2022-23 total paid by top 25 accounts = 50.44 Percent of 2013-14 total paid by top 25 accounts = 52.99% * Firms listed alphabetically * Firms listed alphabetically City of National City
Top 25 Sales Tax Producers
For 2022-23 & 2013-14
Source: Hinderliter, de Llamas Associates, State Board of Equalization 165 Page 1117 of 1135
2014 2015 2016 2017 2018
Governmental Activities:

NCJPFA Lease Revenue Refunding Bond 1,870,000 $ 1,425,000 $ 965,000 $ 490,000 $ - $ Tax Allocation Bonds - - - - -
General Obligation Bonds 4,613,668 4,371,263 4,123,858 3,917,653 3,635,000 Bond Premium 22,468 20,863 19,258 17,653 16,048
2017 Clean Energy Bonds - - - - 1,800,000
2017 Lease Revenue Bonds - - - - 3,530,497
2021 Pension Obligation Bonds - - - - -
Bond discount - - - - -
Notes payable - - - 1,158,837 1,043,788
HUD 108 Bond 2003 A 4,450,000 4,140,000 3,805,000 3,440,000 3,050,000 Total Bonded Debt 10,956,136 $ 9,957,126 $ 8,913,116 $ 9,024,143 $ 13,075,333 $ Per Capita 5,440 $ 5,437 $ 146 $ 128 $ 6,479 $
Percent of Taxable Assessed Values 267.41% 243.02% 217.53% 0.19% 271.26% Other Governmental Activities Debt
Lease liabilities 1,571,831 1,948,686 1,723,764 1,494,160 1,264,425 Business-Type Activities:

Notes Payable-Deed of Trust 1,576,533 1,311,137 1,027,967 725,833 403,464 Total Primary Government 14,104,500 $ 13,216,949 $ 11,664,847 $ 11,244,136 $ 14,743,222 $ Percent of Personal Income 1.43% 1.35% 1.14% 0.96% 1.27% Per Capita 237 $ 223 $ 192 $ 164 $ 220 $
Fiscal Year
City of National City
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Source: City of National City financial statements / notes to the financial statements 166 Page 1118 of 1135
2019 2020 2021 2022 2023
Governmental Activities:

NCJPFA Lease Revenue Refunding Bond - $ - $ - $ - $ - $ Tax Allocation Bonds - 2,175,000 1,690,000 1,170,000 605,000 General Obligation Bonds 3,360,000 3,080,000 2,790,000 2,490,000 2,175,000 Bond Premium 14,443 12,838 11,233 9,628 8,023
2017 Clean Energy Bonds 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 2017 Lease Revenue Bonds 3,407,479 3,273,024 3,110,214 2,933,781 2,743,061 2021 Pension Obligation Bonds - - - 83,895,000 81,330,000 Bond discount - - - (142,838) (135,696)
Notes payable 925,530 803,972 679,023 550,588 418,569
HUD 108 Bond 2003 A 2,630,000 - - - -
Total Bonded Debt 12,137,452 $ 11,144,834 $ 10,080,470 $ 92,706,159 $ 88,943,957 $ Per Capita 6,012 $ 179 $ 4,990 $ 1,477 $ 1,459 $
Percent of Taxable Assessed Values 252.79% 0.22% 2.11% 2.00% 1.79% Other Governmental Activities Debt
Lease liabilities 1,001,185 768,283 627,547 479,639 326,372 Business-Type Activities:

Notes Payable-Deed of Trust - - - - -
Total Primary Government 13,138,637 $ 11,913,117 $ 10,708,017 $ 93,185,798 $ 89,270,329 $ Percent of Personal Income 1.06% 0.96% 0.87% 8.02% 7.70% Per Capita 196 $ 179 $ 162 $ 1,487 $ 1,427 $
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Fiscal Year
City of National City
Source: City of National City financial statements / notes to the financial statements 167 Page 1119 of 1135
2022-23 Assessed Valuation: $4,752,648,535
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable¹ 6/30/2023 Metropolitan Water District 19,215,000 $ 0.137% 26,325 $ San Diego Community College District 1,283,967,601 0.002% 25,679 Southwestern Community College District 758,359,345 6.919% 52,470,883 Chula Vista City School District 109,173,285 1.256% 1,371,216 Chula Vista City School District School Facilities Improvement District No. 1 76,540,000 2.141% 1,638,721 National School District 93.096% 33,117,971 35,574,000
Sweetwater Union High School District 617,301,738 8.204% 50,643,435 Sweetwater Union High School District Community Facilities Districts 2,775,680 23.372% # 648,732 City Overlapping Tax and Assessment Debt Subtotal 139,942,962 City of National City 100% 2,175,000 2,175,000
City Tax and Assessment Debt Subtotal 2,175,000 2,175,000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 142,117,962 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Diego County General Fund Obligations 229,680,000 $ 0.759% 1,743,271 $ San Diego County Pension Obligation Bonds 277,990,000 0.759% 2,109,944 San Diego County Superintendent of Schools Obligations 6,935,000 0.759% 52,637 Southwestern Community College District General Fund Obligations 260,000 6.919% 17,989 Sweetwater Union High School District Certificates of Participation 770,000 8.204% 63,171 Chula Vista City School District Certificates of Participation 179,945,000 1.256% 2,260,109 City of National City General Fund Obligations 4,543,061 100.000% 4,543,061 City of National City Pensions Obligation Bonds 81,330,000 100.000% 81,330,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT - $ 92,120,182 $ Overlapping Tax Increment Debt (Successor Agency) 32,731,000 $ 100% 32,731,000 $ COMBINED TOTAL DEBT $ 266,969,144 - $
Total Direct Debt $ 88,048,061
Total Overlapping Debt 178,921,083
Combined Total Debt2 $ 266,969,144
Ratios to 2022-23 Assessed Valuation:

Direct Debt ($2,175,000) 0.04%
Total Direct and Overlapping Tax and Assessment Debt 2.85% Total Direct Debt ($88,048,061) 1.77%
Combined Total Debt 5.36%
Ratios to Redevelopment Successor Agency Incremental Valuation ($2,646,578,581):

Total Overlapping Tax Increment Debt 1.24%
City of National City
Direct and Overlapping Debt
As of June 30, 2023
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 capital lease obligations.

Source: California Municipal Statistics, Inc.
168 Page 1120 of 1135
Year Secured Unsecured SBE Nonunitary Net Total AV % Change 2013/14 3,024,717,426 $ 224,847,953 $ 5,224,473 $ 3,254,789,852 $ 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% 2022/23 4,739,072,518 $ 238,648,256 $ 3,238,280 $ 4,980,959,054 $ 5.90% City of National City
Net Taxable Assessed Value History
2013/14 - 2022/23
Source: San Diego County Assessor 2004/05-2013/14 Combined Tax Rolls 169 Page 1121 of 1135
2014 2015 2016 2017 2018
Assessed Valuation 3,440,631,221 $ 3,354,840,139 $ 3,440,631,221 $ 3,588,038,313 $ 3,877,829,380 $ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 860,157,805 $ 838,710,035 $ 860,157,805 $ 897,009,578 $ 969,457,345 $ Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 129,023,671 $ 125,806,505 $ 129,023,671 $ 134,551,437 $ 145,418,602 $ Total Debt (due more than one year) 20,857,367 $ 20,579,839 $ 19,496,761 $ 19,090,044 $ 22,603,785 $ Less: Non Bonded Debt
Claims Payable (5,466,746) (5,580,594) (6,112,318) (6,416,518) (7,089,594) Compensated Absences (1,421,472) (1,632,485) (1,821,032) (2,023,755) (1,372,764) Capitalized Lease Obligation (1,362,172) (1,723,765) (1,494,160) (1,249,932) (1,001,185) Notes Payable (1,311,137) (1,027,967) (725,833) (403,465) - Total Applicable to Limitation 11,295,840 10,615,028 9,343,418 8,996,374 13,140,242 Legal Debt Margin 117,727,831 $ 115,191,477 $ 119,680,253 $ 125,555,063 $ 132,278,360 $ Total debt applicable to the limit as
a percentage of debt limit 9% 8% 7% 7% 9%
Source: City of National City financial statements / notes to the financial statements City of National City
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
Source: City of National City financial statements / notes to the financial statements 170 Page 1122 of 1135
2019 2020 2021 2022 2023
Assessed Valuation 4,057,201,760 $ 4,279,008,825 $ 4,523,039,978 $ 4,703,355,402 $ 4,980,959,594 $ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 1,014,300,440 $ 1,069,752,206 $ 1,130,759,995 $ 1,175,838,851 $ 1,245,239,899 $ Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 152,145,066 $ 160,462,831 $ 169,613,999 $ 176,375,828 $ 186,785,985 $ Total Debt (due more than one year) 22,569,433 $ 27,024,384 $ 26,503,876 $ 108,135,511 $ 105,034,519 $ Less: Non Bonded Debt
Claims Payable (8,262,594) (11,356,000) (11,948,000) (10,966,000) (11,292,000) Compensated Absences (1,622,476) (3,755,267) (3,847,859) (3,983,713) (4,472,190) Capitalized Lease Obligation (768,962) (768,283) (627,547) (479,639) (326,372) Notes Payable - - - - -
Total Applicable to Limitation 11,915,401 11,144,834 10,080,470 92,706,159 88,943,957 Legal Debt Margin 140,229,665 $ 149,317,997 $ 159,533,529 $ 83,669,669 $ 97,842,028 $ Total debt applicable to the limit as
a percentage of debt limit 8% 7% 6% 53% 48%
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
Source: City of National City financial statements / notes to the financial statements 171 Page 1123 of 1135
2014 2015 2016 2017 2018
Revenue
Property Tax Gross Incremental Revenue 13,608,368 $ 12,705,481 $ 11,558,679 $ 7,740,998 $ 8,921,732 $ Debt Service Requirements
Principal 4,290,000 5,230,000 2,070,000 2,220,000 3,163,000 Interest and Fiscal Charges 3,589,747 3,484,532 3,078,878 2,980,532 1,166,000 Pass-through Payments - - - - -
$ 8,714,532 7,879,747 $ 5,148,878 $ 5,200,532 $ 4,329,000 $ Debt Coverage 1.73 1.46 2.24 1.49 2.06
Fiscal Year
City of National City
Pledged Revenue Coverage
Last Ten Fiscal Years
Source: City of National City Comprehensive Annual Financial Reports or financial statements 172 Page 1124 of 1135
2019 2020 2021 2022 2023
Revenue
Property Tax Gross Incremental Revenue 5,185,031 $ 1,204,954 $ 2,687,984 $ 3,485,844 $ 4,199,028 $ Debt Service Requirements
Principal 3,113,000 3,113,000 3,194,000 3,131,000 3,208,000 Interest and Fiscal Charges 1,088,084 1,088,084 1,009,785 931,307 852,589 Pass-through Payments - - - - -
$ 4,201,084 4,201,084 $ 4,203,785 $ 4,062,307 $ 4,060,589 $ Debt Coverage 1.23 0.29 0.64 0.86 1.03
Fiscal Year
City of National City
Pledged Revenue Coverage (Continued)
Last Ten Fiscal Years
Source: City of National City Comprehensive Annual Financial Reports or financial statements 173 Page 1125 of 1135
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174 Page 1126 of 1135
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
2013 59,381 1.9% 0.7% 32 3.40 67.9% 12.7% 11.9% $ 16,538 982,043 $ 2014 59,235 1.9% 0.5% 31.5 3.41 69.8% 12.5% 8.1% $ 16,504 977,614 $ 2015 60,768 1.8% 2.6% 31.9 3.41 70.8% 12.7% 6.6% $ 16,797 1,020,729 $ 2016 61,210 1.8% 0.7% 32.2 3.40 72.3% 12.9% 5.9% $ 17,132 1,048,669 $ 2017 62,257 1.9% 1.7% 32.5 3.4 72.4% 14.2% 5.0% $ 17,329 1,078,906 $ 2018 62,307 1.9% 0.1% 32.5 3.4 73.5% 14.6% 4.4% $ 18,550 1,155,824 $ 2019 62,099 1.9% -0.3% 33.6 3.39 74.2% 14.9% 4.1% $ 20,796 1,291,429 $ 2020 62,749 1.9% 1.0% 34.2 3.3 74.9% 14.2% 12.6% $ 21,481 1,347,968 $ 2021 61,471 1.9% -2.0% 33.9 3.4 75.4% 15.8% 9.3% $ 23,077 1,418,597 $ 2022 60,974 2.8% -0.8% 36.8 3.14 74.0% 15.0% 4.6% $ 21,577 1,315,680 $ * 2023 information not available.
1 Dollar values are inflation-adjusted
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
175 Page 1127 of 1135
2014 2015 2016 2017 2018
Function/Program
General Government
City Clerk 3.00 3.00 3.00 3.00 3.00
City Manager 8.00 8.00 8.00 8.00 7.00
Risk Management 1.00 1.00 1.00 1.00 1.00
Management Information Systems 3.00 3.50 4.00 4.00 4.00 Finance 14.48 14.77 15.77 14.29 14.29
Purchasing 2.48 1.48 1.48 1.48 1.48
City Attorney 3.50 4.00 3.50 4.00 4.00
Human Resources 3.00 3.00 5.00 5.00 4.00
Community Development 19.34 15.01 — — —
Planning 3.00 3.00 4.00 4.00 5.00
Building 4.00 4.00 5.00 5.00 5.00
Engineering 10.00 11.00 13.00 13.00 13.00
Redevelopment 3.20 ————
Housing & Economic Development 14.00 15.00 15.00 16.00 15.00 Neighborhood Services 10.00 10.00 11.00 11.00 11.00
Public Works 42.00 45.00 45.00 46.50 46.50
Community Services 19.35 15.01 17.98 18.98 18.98
Nutrition Center 10.00 10.00 10.00 10.00 9.00
Library 56.30 20.35 21.35 21.85 21.85
Public Safety
Police 125.38 129.50 129.50 126.98 126.98
Fire 43.00 43.00 47.00 47.00 47.00
Fiscal Year
City of National City
Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Source: City of National City Annual Adopted Budgets
176 Page 1128 of 1135
2019 2020 2021 2022 2023
Function/Program
General Government
City Clerk 3.00 3.00 2.00 2.00 3.00
City Manager 7.00 7.00 11.00 5.00 7.00
Risk Management 1.00 1.00 1.00 1.00 1.00
Management Information Systems 4.00 4.00 4.00 4.00 3.00 Finance 14.29 14.29 15.29 14.50 12.50
Purchasing 1.48 1.00 1.00 1.00 1.00
City Attorney 5.00 5.00 5.00 4.00 4.00
Human Resources 3.00 4.00 4.00 4.50 5.00
Community Development — ————
Planning 5.00 5.00 5.00 5.00 6.00
Building 4.00 4.00 4.00 4.00 4.00
Engineering 13.00 10.60 11.00 11.00 11.00
Redevelopment — ————
Housing & Economic Development 15.00 15.00 14.00 15.00 15.00 Neighborhood Services 11.00 12.00 12.00 10.00 12.00
Public Works 46.50 49.90 51.00 49.00 50.00
Community Services 18.98 17.00 18.98 11.50 6.00
Nutrition Center 9.00 9.00 10.00 7.25 6.00
Library 21.85 22.85 22.85 7.50 8.00
Public Safety
Police 128.98 128.98 129.94 123.00 128.00
Fire 47.00 51.00 47.00 52.00 52.00
Fiscal Year
City of National City
Full-time Equivalent City Government Employees by Function/Program (Continued) Last Ten Fiscal Years
Source: City of National City Annual Adopted Budgets
177 Page 1129 of 1135
2014 2015 2016 2017 2018
Function/Program
Police
Physical Arrests 3,167 3,484 3,418 3,078 2,733
Parking Violations 11,283 7,434 8,659 7,958 8,693
Traffic Violations 2,158 1,801 1,561 1,563 1,772
Fire
Emergency Responses 6,264 7,815 8,228 8,403 8,815
Fires Extinguished 149 121 141 125 138
Inspections 1,583 1,316 900 837 914
Other Public Works
Street Resurfacing (miles) - 2 - - 2
Parks and Recreation
Athletic Field Permits Issued 9 18 26 28 28
Community Center Admissions¹ 54,520 18,138 42,762 43,396 45,342 Library
Volumes in Collection 246,299 238,114 233,109 231,683 233,086 Total Volumes Borrowed 215,955 189,145 129,762 111,271 110,023 Wastewater
Average Daily Sewage Treatment
(million gallons per day) 4 4 4 4 4
1 Excludes Nutrition Center admissions.

Fiscal Year
City of National City
Operating Indicators by Function/Program
Last Ten Fiscal Years
Sources: Various City departments
178 Page 1130 of 1135
2019 2020 2021 2022 2023
Function/Program
Police
Physical Arrests 2,567 1,693 1,654 1,393 1,446
Parking Violations 7,348 2,541 9,573 9,135 7,299
Traffic Violations 1,987 1,119 1,030 929 1,149
Fire
Emergency Responses 8,463 7,784 7,914 8,222 8,068
Fires Extinguished 120 149 199 249 245
Inspections 820 599 1,035 1,112 933
Other Public Works
Street Resurfacing (miles) 34 2 1 1 3
Parks and Recreation
Athletic Field Permits Issued 13 11 6 10
Community Center Admissions¹ 56,988 54,906 31,661 30,734 46,536 Library
Volumes in Collection 206,210 204,284 229,019 214,289 215,984 Total Volumes Borrowed 103,594 68,061 16,203 37,038 49,857 Wastewater
Average Daily Sewage Treatment
(million gallons per day) 4 4 4 4 4
1 Excludes Nutrition Center admissions.

City of National City
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
Fiscal Year
Sources: Various City departments
179 Page 1131 of 1135
2014 2015 2016 2017 2018
Function/Program
Police
Stations 11111
Zone Offices 11100
Patrol Units 34 38 45 45 45
Fire Stations 22222
Other Public Works
Streets (miles) 101 101 101 108 108
Highways (miles) 66699
Streetlights 1,730 1,730 1,730 1,995 1,995
Traffic Signals 74 74 75 74 80
Parks and Recreation
Acreage 84 84 75 80 80
Playgrounds 44555
Baseball/Softball Diamonds 55555
Soccer/Football Fields 11111
Community Centers 55111
Wastewater
Sanitary Sewers (miles) 97 97 97 104 104
Storm Sewers (miles) 45.0 45.0 45.0 96.0 96.0
Treatment Capacity (million gallons per day) 7.20 7.20 7.20 7.20 7.20 NA: Not available.

Sources: Various City departments
Fiscal Year
City of National City
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Sources: Various City departments
180 Page 1132 of 1135
2019 2020 2021 2022 2023
Function/Program
Police
Stations 11111
Zone Offices 11111
Patrol Units 60 60 60 69 60
Fire Stations 22333
Other Public Works
Streets (miles) 108 108 108 108 108
Highways (miles) 99999
Streetlights 2,731 2,731 2,731 848 NA
Traffic Signals 80 82 82 80 80
Parks and Recreation
Acreage 80 80 92 92 92
Playgrounds 55555
Baseball/Softball Diamonds 55555
Soccer/Football Fields 11111
Community Centers 51555
Wastewater
Sanitary Sewers (miles) 104 104 104 104 104
Storm Sewers (miles) 96.0 96.0 96.0 96 96
Treatment Capacity (million gallons per day) 7.20 7.20 7.20 7 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
Sources: Various City departments
181 Page 1133 of 1135
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182 Page 1134 of 1135