National City City Council
December 2, 2025

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City of National City
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

43 NOTE DESCRIPTION PAGE

1 Reporting Entity and Summary of Significant Accounting Policies 45

2 Cash and Investments 57

3 Leases Receivable and Related Deferred Inflows of Resources 62

4 Loans Receivable 63

5 Interfund Balances and Transactions 66

6 Capital Assets 68

7 Long-Term Debt 69

8 Compensated Absences 74

9 Other Required Disclosures 75

10 Self-Insurance Accrued Liabilities 76

11 Pension Plans 77

12 Other Postemployment Benefits 85

13 Commitments and Contingencies 88

14 Classification of Fund Balances 90

15 Net Investment in Capital Assets 91

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City of National City
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

45 Note 1 – Reporting Entity and Summary of Significant Accounting Policies

The basic financial statements of the City of National City, California (the “City”) have been prepared in conformity with accounting principles generally accepted of the United States of America (“US GAAP”) as applied to governmental agencies. The Governmental Accounting St andards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial re porting principles. The more significant of the City’s accounting policies are described below.

A. Reporting Entity

The City was incorporated September 17, 1887 under the general laws of the State of California. The City operates under a Council-Manager form of government and provides basic local governmental services including public safety (police and fire), maintenance and constr uction of public improvements, cultural, recreation, planning, zoning, transportation, health services and gene ral administration. In addition, the City operates the Community Development Commission (which formerly included the Morgan Towe rs and Kimball Towers Enterprise Funds). The City sold Kimball Towers and Morgan Towers to two not-for-profit organizations on March 28, 2019. The sale was intended to ensure th e feasibility of the renovation, since not-for-profit organizations have financing sources that are unavailable to a developer such as a City.

In evaluating how to define the City for financial re porting purposes, management has considered all potential component units. The primary criteria for including a poten tial component unit within the reporting entity are the governing body’s financial accountability and a financial benefit or burde n relationship and whether it is misleading to exclude. A primary govern ment is financially accountable and shares a financial benefit or burden relationship if it appoints a voting majority of an organization’s governing body and it is able to impose its will on the organization, or if there is a potential for the organi zation to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally depende nt on the primary government regardl ess of whether the organization has a separately elected governing board, a governing board appo inted by a higher level of government, or a jointly appointed board, and there is a potential for the organizati on to provide specific financ ial benefits to, or impose specific financial burdens on the primary government.

Blended Component Units

The financial reporting entity consists of the primary government, the City, and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be othe r organizations for which the primary government is accountable and their exclusion would cause the reporting en tity’s financial statements to be misleading or incomplete.

Blended component units, although legally separate entities, are, in substance part of the government’s operation and so data from these units are combined with data of the primary government. Discretely presents component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government.

Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substan tially the same as the City’s and there is a financial benefit or burden relationshi p between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclus ively, benefits the City, even though it does not provide services directly to it.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

46 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

A. Reporting Entity (Continued)

Blended Component Units (Continued)

National City Joint Powers Financing Authority

The National City Joint Powers Financing Authority (the “NCJPFA”) was created pursuant to a joint exercise of powers agreement entered into by and between the City and the CDC on April 16, 1991. The purpose of such agreement was to provide for the financing and construction of a new police facility and a new community center.

The NCJPFA is administered by a commission consisti ng of the members of the City Council and all voting power of the NCJPFA resides in th e commission. The NCJPFA exclusivel y benefits the City. In 2017 the NCJPFA facilitated the lease financing of the 2017 Ener gy Savings Project. There are no separate financial statements available.

Parking Authority of the City of National City

In July 1977, the Parking Authority of the City of Nati onal City (the “Parking Authority”) was activated pursuant to the Parking Law of 1949 for the fi nancing and construction of the Plaza Bon ita Parking Facility. Currently it is used to account for the City’s parking enforcement activ ities and developing solutions to demand for parking in various sections of the City. The City Council is the governing board of th e Authority. The Authority exclusively benefits the City. The capital assets of the Parking Au thority have been include d in the Government-Wide Financial Statements. There are no separate financial statements available.

Community Development Commission of the City of National City

The National City Redevelopment Agency (the “RDA”), pursuant to provisions of the California Health and Safety Code, was established in April 1967 to undertake a nd carry out the redevelopment of certain areas within the City that were determined to be blighted. In 1975 , the City formed the Housing Authority and concurrently established the Community Development Commission (the “CDC”) to oversee both the RDA and the Housing Authority. In 2012, redevelopment agencies throughout th e state of California were dissolved, including the National City RDA. The CDC remains as an active entity with respect to its Housing Authority functions. The City Council is the Governing Board of the CDC. There are no separate financial statements available.

The following specific criteria were used in determining the status of these component units:

 Members of the City Council also act as the governin g body of the NCJPFA, the Parking Authority, and the CDC;

 The City, the NCJPFA, the Parking Authority, and the CDC are financially interdependent;

 The NCJPFA, the Parking Authority, and the CDC are managed by employees of the City, who provide various support functions including financial reporting and investment decisions.

B. Basis of Accounting and Measurement Focus

The accounts of the City are organized on the basis of f unds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by pr oviding a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues a nd expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended pur pose and is used to aid ma nagement in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

47 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

The Statement of Net Position and Balance Sheet – Govern mental Funds report separate sections for deferred outflows of resources, and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent outflows of resources (consumption of net assets that applies to future periods) that apply to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent inflows of resources (acquisition of net assets that applies to future periods) that apply to future periods and that, therefore, are not recognized as revenue until that time.

Government - Wide Financial Statements

The City’s Government-Wide Financial Statements incl ude a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduc iary activities of the City are not included in these statements.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and lia bilities, including capital asset s, as well as infrastructure assets, and long-term liabilities, are included in the acco mpanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrua l basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues for the City in three categories:

 Charges for services;
 Operating grants and contributions;
 Capital grants and contributions

Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those repr esenting balances between the governmental activities and the business-type activities, wh ich are presented as internal balances and eliminated in the total primary government column. In the Statemen t of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business- type activities have not been eliminated. The following interfund activities have been eliminated:

 Due to/from other funds;
 Advances to/from other funds;
 Transfers in/out

Governmental Fund Financial Statements

Governmental Fund Financial Statements include a Ba lance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governme ntal funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explai n the differences in net position as presented in these statements to the net position presented in the Governme nt-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

48 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

Governmental Fund Financial Statements (Continued)

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expend itures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recognized as soon as they are both “measura ble” and “available”. Revenues are considered to be available when they are collectible within the current period or as soon en ough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary reve nue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergove rnmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.

The City reports the following major governmental funds:

General Fund - This is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund.

Housing Asset Special Revenue Fund - This fund was established in 2012 pursuant to the redevelopment agency dissolution legislation to account for the assets and activities of the former RDA’s Low-and- Moderate-Income Housing Fund.

Housing Choice Voucher Program (“Section 8”) Special Revenue Fund - This fund is used to account for the activities of Housing Assistance Program. The progr am provides rental assistance to low-income families by subsidizing a portion of the rent directly to land lords on behalf of low-income households. The major revenue source for this fund is Housing Assistance Payments and Administrative Fees.

Sewer Service Special Revenue Fund - This fund is used to account for the collection of sewer connection fees and sewer service charges billed and paid via the County’s annual property tax collection system which are used for the construction and maintenance of the C ity’s sewer system. The major revenue source for this fund is the sewer service charge.

ARPA Special Revenue Fund - This fund is used to account for the proceeds and expenditures of the American Recovery Plan Act funding received by the City.

Other Special Revenue Fund - This represents a combination of minor and less active funds that the City has combined for reporting purposes. The major revenue s ources consist of intergovernmental revenues, user- charge fees, franchise fees, and development impact fees.

Housing Authority Special Revenue Fund - This fund is used to account for the activities of the development of a viable urban comm unity by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons with low and moderate incomes.

POB Debt Service Fund - This fund is used to account for the sources and uses of and debt service on the 2021 Pension Obligation Bonds.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

49 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

Proprietary Fund Financial Statements

Proprietary Fund Financial Statements include a Statemen t of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Fl ows. All of the City’s proprietary funds are internal service funds. A column representing internal service funds is presented in these statements. Internal service fund balances and activities have been combined with the gove rnmental activities in the Government-Wide Financial Statements. The City’s internal service funds include sev en individual funds which provide services directly to other City funds. These areas of service include Facilities Maintenance, Liability Insurance, Information Systems Maintenance, Office Equipment Depreciation, Tel ecommunications, Vehicle Replacement, and Vehicle Maintenance.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses a nd Changes in Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under th e accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are rec ognized in the period in which the liability is incurred.

In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Operating revenues in the proprietary funds are those re venues that are generated fro m the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

The City reports the following proprietary funds (all are internal service funds) that are funded by user departments on a cost reimbursement basis:

Facilities Maintenance Fund - This fund is used to account for the cost of maintaining all City-owned buildings in a clean, safe, workable, and pleasant condition.

Liability Insurance Fund - This fund is used to account for the co sts of maintaining the City’s Worker’s Compensation and liability insurance programs.

Information Systems Maintenance Fund - This fund is used to account for the costs to maintain and replace City information technology software and hardware and related equipmen t as well as pay for the City staff that provide support to other City departments on a daily basis.

Office Equipment Depreciation Fund - This fund is used to account fo r the costs to replace City office equipment.

Telecommunications Revolving Fund - This fund is used to account for the costs of maintaining the City’s telecommunication systems.

Motor Vehicle Service Fund - This fund is used to account for the C ity’s costs of preventative maintenance and repairs for its fleet, including police, fire, ge neral administrative, park, sewer, and public works equipment.

Vehicle Replacement Fund - This fund is used to account for the costs to lease or purchase new or replacement City fleet vehicles and related equipment.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

50 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

Fiduciary Fund Financial Statements

Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent cu stodial funds and private purpose trust funds. Both the custodial funds and the private purpose trust funds use the economic resources measurement focus and are accounted for on the full accrual basis of accounting.

Fiduciary fund types are accounted fo r according to the nature of the fund. The City’s Custodial funds (Cobra Insurance and Miscellaneous Developer’s Deposits) are pur ely custodial in nature. These funds are used to account for money and property held by the City as trustee or custodian.

The City has one active private purpose trust fund, the Redevelopment Obligations Retirement Fund, which is used to report the assets, liabilities, and activities of the Successor Agency to the former redevelopment agency.

The Successor Agency to the Community Development Co mmission as the National City Redevelopment Agency (the “Successor Agency”) was created by the City Council of National City (City Council) in January 2012. It was established pursuant to Assembly Bill X1 26. Its purpose is to expeditiously wind down the affairs of the dissolved Redevelopment Agency. The governing body of the Successor Agency is comprised of the members of the City Council. Certain actions of th e Successor Agency Board are subject to review by the Countywide Oversight Board and the California State Depa rtment of Finance. The Successor Agency has been included in the accompanying basic fina ncial statements as a private purpose tr ust fund. Its results of operations are presented on the Statement of Changes in Fiduciary Net Position.

C. Cash, Cash Equivalents and Investments

The City pools its available cash for investment pur poses. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.

Highly liquid market investments with maturities of one y ear or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Fair value is used as fair valu e for those securities for which market quotations are readily available.

The statement of cash flows requires presentation of “cash and cash equivalents”. For the purposes of the statement of cash flows, the City considers all proprie tary fund pooled cash and i nvestments as “cash and cash equivalents”, as such funds are available to the various funds as needed.

Certain disclosure requirements, if applicable, for deposit and investment risks in the following areas:

 Interest rate risk
 Credit risk
- Overall
- Custodial credit risk
- Concentration of credit risk
 Foreign currency risk

In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

51 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

D. Fair Value Measurement

U.S. GAAP defines fair value, establishes a framework for measuring fair value, and establishes disclosures about fair value measurement. Investments, unless otherwise specif ied, are recorded at fair value in the Statements of Net Position and are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quot ed prices for identical assets or liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

Investments that don’t fit into one of the three levels of inputs are described as “uncategorized.”

E. Leases

The City is a lessor for leases of land and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. Subsequently, the lease rece ivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over th e life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City dete rmines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

 The City uses the average of the Local Agency Investment Fund (“LAIF”) rate and the incremental borrowing rate (“IBR”) provided by the City’s financial institutions at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.
 The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
 Lease receipts included in the measurement of the l ease receivable is composed of fixed payments from the lessee.

The City monitors changes in circum stances that would require a remeasureme nt of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that ar e expected to significantly affect the amount of the lease receivable.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

52 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

F. Inventories and Prepaid items

Inventories are valued on an average-cost basis which is adjusted to annual physical counts or estimates under the consumption method of accounting and are recorded in the internal service funds. Prepaid items are items the City has paid in advance and will receive future benefit from.

G. Restricted Assets

Fiscal agents acting on behalf of the City hold investme nt funds placed in irrevocable IRS Section 115 pension and OPEB trusts. These funds are restricted by the trust ag reements and are to be used only for pension and/or OPEB contributions or benefit payments.

H. Interfund Transactions

Activity between funds that are representative of lending/ borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” or “advances to/from other funds” (i.e., the current portion of interfund loans). Any residual balances out standing between the governmental activities and business- type activities are reported in the Governmental-Wide Financial Statements as “internal balances.”

I. Capital Assets

Capital assets are valued at historical cost or estimated hi storical cost if actual historical cost was not available.

Donated capital assets are valued at their estimated acquis ition value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $5, 000 (including infrastructure assets). Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Buildings and improvements 10 - 50 years
Machinery and equipment 2 - 20 years
Infrastructure 25 - 75 years
Radio rights 20 years

For all infrastructure systems, the City elected to use the basic approach for infrastructure reporting. The City defines infrastructure as the basic physi cal assets that allow the City to f unction. The assets include the streets, water purification and distribution system, sewer collecti on and treatment system, parks and recreation, lands and improvements, storm water conveyance system, and buildi ngs combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major in frastructure system can be divided into subsystems. For example, the street syst em can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devic es (signs, signals and pavement markings), landscaping and land.

These subsystems were not delineated in the basic fina ncial statements. The appropr iate operating department maintains information regarding the subsystems.

The governmental fund financial statements do not pr esent capital assets but capital assets are shown in the Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

53 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

J. Land Held for Resale

Land held for resale is valued at the lower of cost or net realizable value. The reported amount is classified as nonspendable net position in the General Fund and in the Housing Special Revenue Fund.

K. Compensated Absences

In government-wide financial statements and the propri etary fund financial statements, compensated absences are recorded as expenses and liabilities as incurred.

In governmental fund financial statements, compensated absences are recorded as expe nditures in the years paid, and it is the City’s policy to liquida te any unpaid vacation, sick leave, or compensatory time at year-end from future resources rather than currently available and e xpendable resources. The General Fund and internal service funds are typically used to liquidate compensated absences.

L. Long-Term Debt

Government-Wide Financial Statements

Long-term debt and other financial obligations are reported as liabilities in the appropriate funds.

Bond premiums and discounts are deferre d and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are expensed when incurred.

Fund Financial Statements

The fund financial statements do not present long-term de bt, but long-term debt is s hown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

M. Property Taxes

Property taxes are payable by property owners in two installments: November 1 and February 1 of each year.

Property taxes become delinquent on December 10 an d April 10, for the first and second installments, respectively. The lien date is January 1. The County of San Diego, California (County) bills and collects property taxes and remits them to the City according to a payment schedule established by the County.

Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the taxes are received within 60 days after the end of the fiscal year. Property taxes receive d after this date are not considered available as a resource that can be used to finance the current year operations of the City and, therefore, are not recorded as revenue until collected. No allowance for doubtful accounts w as considered necessary because the City participates in the California T eeter Plan whereby local agencies receive 100% of their current secured and unsecured tax levy in exchange for allowing the sponsoring c ounty to retain all inter est and penalties on any late property tax payments.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

54 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

N. Unearned Revenue

Unearned revenue recorded in the Go vernment-Wide Statement of Net Pos ition for governmental activities and the governmental fund financial statem ents consists of federal and stat e capital grants, representing voluntary non-exchange transactions, for which advance payments have been received from the provider for which eligibility requirements, other than timing requirements, have not been satisfied.

Unearned revenue recorded in the Government-Wide Stat ement of Net Position for business-type activities and the proprietary fund financial statemen ts generally consist of program fees collected from customers prior to the statement of net position date for recreation programs that be gin in the next fiscal year or donations for capital or work projects, for which the related expenses have not yet been incurred.

O. Pensions

For purposes of measuring the net pens ion liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pens ion expense, information about the fi duciary net position of the pension plans and additions to/deductions from the plans’ fiduci ary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accord ance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting:

CalPERS:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023

Gains and losses related to changes in total pension liab ility and fiduciary net position are recognized in pension expense systematically over time. The first amortized am ounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categor ized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expe nse. The amortization period differs depending on the source of the gain or loss. The diff erence between projected and actual earnings is amortized straight-line over five years. All other amounts are amorti zed 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.

P. Other Postemployment Benefits

For purposes of measuring the total OPEB liability, defe rred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, informa tion about the fiduciary net position of the plan and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by the plan.

The following timeframes are used for OPEB reporting:

Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

55 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

Q. Net Position

In government-wide and proprietary fund financial statements, net position is categorized as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation and amortization, plus defe rred outflows of resources attributable to their acquisition, reduced by the outstanding balances of debt th at are attributable to the acquisition, construction, or improvement of those assets and deferred inflows of resources attributable to their acquisition.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted – This component of net positi on is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of res ources that are not included in the de termination of net investment in capital assets or the restricted component of net position.

R. Fund Balances

In governmental fund financial statements, fund balances are categorized as follows:

Nonspendable – Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, or items that are legally or contractually re quired to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body and that remain binding unless removed in the same manner. Adoption of a resolution by the City Council is required to commit resources or rescind the commitment. The action that constitutes the most binding constraint (i.e. ordinan ce) of the City’s highest level of decision-making authority, the City Council, commits fund balance for specific purposes. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. Th e City Council has authorized the City Manager to determine and define the amount of assigned fund balances.

Unassigned – This amount is for any portion of the fund ba lances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive un assigned fund balance amount because all of the fund balance is assumed to be either nons pendable, restricted, committed, or assigned for the purposes of the respective funds. However, in other govern mental funds, if expenditures incurred for specific purposes exceed the amounts that are restricted, co mmitted, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

56 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

S. Spending Policy

Government-Wide Financial Statements and the Proprietary Fund Financial Statements

When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.

Governmental Fund Financial Statements

When expenditures are incurred for purposes where only unrest ricted fund balances are av ailable, the City uses the unrestricted resources in accord ance with the City’s budget and the purposes for which the committed, assigned, and unassigned balances have been reported.

T. Use of Estimates

The preparation of basic financial statements in conf ormity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts a nd disclosures. Actual results could differ from these estimates and assumptions.

U. Accounting Changes

New Governmental Accounting Standards Implemented for the Year Ended June 30, 2024

GASB Statement No. 100

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Co rrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understanda ble, reliable, relevant, consistent, and comparable information for making d ecisions or assessing accountability. Application of this statement did not have a significant effect on the City’s financial reporting fiscal year ending June 30, 2024.

Upcoming Governmental Accounting Standards Implementation

GASB Statement No. 101

In June 2022, GASB issued Statement No. 101, Compensated Absences . The objective of this Statement is to better meet the information needs of financial stat ement users by updating the recognition and measurement guidance for compensated absences. Th at objective is achieved by aligni ng the recognition and measurement guidance under a unified model and by amending certain pr eviously required disclosures. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.

GASB Statement No. 102

In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

57 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)

U. Accounting Changes (Continued)

Upcoming Governmental Accounting Standards Implementation (Continued)

GASB Statement No. 103

In April 2024, GASB issued Statement No. 103, Financial Reporting Model Improvements . The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 104

In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires certain types of capital assets to be disclosed sep arately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public -Public Partnerships and Availability Payment Arrangements , should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription- Based Information Technology Arrangements , also should be separately disclosed. In addition, this Statement requires intangible assets other than th ose three types to be disclosed separ ately by major class. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

Note 2 – Cash and Investments

The following is a summary of pooled cash and investment s, including cash and investments with fiscal agents at June 30, 2024.

Fiduciary Funds
Governmental Statement of
Activities Net Position Total
Cash and investments 137,608,414 $ 6,982,132 $ 144,590,546 $ Restricted cash and investments:

Section 115 pension trust 7,222,427 - 7,222,427 Section 115 OPEB trust 3,539,380 - 3,539,380 Held by fiscal agent 10,334 26,464 36,798 Total restricted cash and investments 10,772,141 26,464 10,798,605 Total cash and investments 148,380,555$ 7,008,596 $ 155,389,151 $

Cash, cash equivalents and investments consisted of the following at June 30, 2024:

Petty cash 4,211 $
Deposits with financial institutions 27,702,486
Investments 116,883,849
Section 115 pension trust 7,222,427
Section 115 OPEB trust 3,539,380
Investments held by bond trustee 36,798
Total cash and investments 155,389,151$

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

58 Note 2 – Cash and Investments (Continued)

A. Deposits

The carrying amount of the City’s cash deposits was $27,702,486 at June 30, 2024. Bank balances before reconciling items were $30,932,507 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 fi rst trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive colla teral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. In terest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund.

B. Investments

Investments Authorized by the California Government Code and the City’s Investment Policy

The table below identifies the investment types that ar e authorized for the City by the California Government Code (or the City’s investment policy, where more restri ctive). The table also identifies certain provisions of the California Government Code (or the City ’s investment policy, where more rest rictive) that address interest rate risk, credit risk, and concentration of credit risk. This ta ble does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agre ements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Ma x i m um Ma x i m um
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.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

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.

Ma x i m um Ma x i m um
Authorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio One Issuer
US Treasury Obligations None None None
US Agency Securities None None None
Banker’s Acceptances 180 days None None
Commercial Paper 270 days None None
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, 2024, the City’s investments had the following recurring fair value measurements:

Percent of
Investment Type Level 2 Uncategorized Total Total
LAIF - $ 40,739,153$ 40,739,153 $ 31.91% Money market funds - 166,561 166,561 0.13% San Diego County Investment Pool - 39,011,179 39,011,179 30.55% Supranational 1,594,294 - 1,594,294 1.25% Asset-backed Securities 991,933 - 991,933 0.78% US Corporate 10,082,830 - 10,082,830 7.90% US Treasury obligations 17,456,067 - 17,456,067 13.67% US Agency Securities 6,841,832 - 6,841,832 5.36% Subtotal 36,966,956 79,916,893 116,883,849 91.54% Held by fiscal agent:

Section 115 pension trust - 7,222,427 7,222,427 5.66% Section 115 OPEB trust - 3,539,380 3,539,380 2.77% Money market funds - 36,798 36,798 0.03% Subtotal - 10,798,605 10,798,605 8.46% Total Investments 36,966,956$ 90,715,498 $ 127,682,454 $ 100.00%

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

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 secur ities cannot exceed five years, except as otherwise stated in the investment policy. Specific maturities of investments depend on liquidity needs.

As of June 30, 2024, the City had the following investments and maturities:

Investment Type Fair Value 1 year or less 1 to 2 years 2-3 years 3-4 years 4-5 years LAIF 40,739,153 $ 40,739,153 $ - $ - $ - $ - $ Money market funds 166,561 166,561 - - - - San Diego County Investment Pool 39,011,179 39,011,179 - - - - Supranational 1,594,294 795,830 - - - 798,464 Asset-backed securities 991,933 - 214,608 216,153 - 561,172 US Corporate 10,082,830 1,421,443 1,240,458 2,980,137 1,672,433 2,768,359 US Treasury obligations 17,456,067 - 5,674,001 4,581,709 4,355,130 2,845,227 US Agency Securities 6,841,832 909,067 425,304 721,273 2,763,753 2,022,435 Subtotal 116,883,849 83,043,233 7,554,371 8,499,272 8,791,316 8,995,657 Held by fiscal agent:

Section 115 pension trust 7,222,427 7,222,427 - - - - Section 115 OPEB trust 3,539,380 3,539,380 - - - - Money market funds 36,798 36,798 - - - - Subtotal 10,798,605 10,798,605 - - - - Total Investments 127,682,454$ 93,841,838 $ 7,554,371 $ 8,499,272 $ 8,791,316 $ 8,995,657 $ Investment Maturities

The weighted average maturity of the portfolio was 1.74 years.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

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 fu lfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to receive City money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an ove rall rating of not less than "satisfactory" in its most recent evaluation by the appropriate fede ral financial supervisory agency of its record of meeting the credit needs of California's communities, including low-and-moderate-income neighborhoods.

The City’s investments are rated by the nationally recognized statistical rating organizations as follows:

Stand ar d
Fair Value Moody's & Poor's
LAIF 40,739,153 $ not rated not rated
Money Market Funds 166,561 Aaa AAA
San Diego County Investment Pool 39,011,179 not rated not rated Supranational 1,594,294 Aaa AAA
Asset-backed Securities 991,933 Various Various US Corporate 10,082,830 Various Various
US Treasury obligations 17,456,067 n/a n/a
US Agency securities 6,841,832 Aaa AA+
Investment in Section 115 pension trust 7,222,427 not rated not rated Investment in Section 115 OPEB trust 3,539,380 not rated not rated Investments held by bond trustee 36,798 not rated not rated 127,682,454$
Investment Type

Custodial Credit Risk

Custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be able to recover the value of its investments or collateral secur ities that are in the possession of an outside party. All securities, with the exception of LAIF and other pooled investments, are held by a third-party custodian (BNY Western Trust). BNY is a registered member of the Federal Reserve Bank.

Concentration of Credit Risk

The City’s investment policy contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5% or more of total City’s investments are as follows:

Fair Value Percentage
Local Agency Investment Fund (LAIF) 40,739,153$ 31.91% San Diego County Investment Pool 39,011,179 30.55% US Treasury obligations 17,456,067 13.67%
PARS pension trust Investment in Section 115 pension trust 7,222,427 5.66% US Corporate 10,082,830 7.90%Corporate Medium Term Notes 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, 2024

62 Note 2 – Cash and Investments (Continued)

E. Investments in Local Agency Investment Fund (LAIF)

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. As of June 30, 2024, the City had $40,739,153 invested in LAIF. LAIF determines fair value on its investment por tfolio based on market qu otations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

F. Investments in San Diego County Investment Pool

The City also participates in the San Diego County Treasu rer’s Pooled Money Fund which is administered by the Treasurer-Tax Collector’s Office. At June 30, 2024, the City had $39,011,179 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 portf olio (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 au thorizes 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 pa rticipants’ average daily balances. The County’s annual financial report for the Pool can be obtained from th e 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 consis t 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, 2024, the City r ecognized $453,004 in lease revenue and $74,108 in interest revenue, and the outstanding receivable amount is $2,734,766.

A summary of changes in leases receivable for the fiscal year ended June 30, 2024 is as follows:

Amounts Amounts
Balance Balance due within due in more
July 1, 2023 Additions Reductions June 30, 2024 one year than one year 3,155,223$ - $ (420,457)$ 2,734,766 $ 395,183 $ 2,339,583 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

63 Note 3 – Leases Receivable and Related Deferred Inflows of Resources (Continued)

As of June 30, 2024, the required payments for these leases, including interest, are:

Year Ending Leases
June 30 Receivable Interest Total
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 345,491 26,845 372,336 2030-2034 825,408 45,847 871,255 2035-2039 33,842 5,898 39,740 2040-2043 29,625 1,505 31,130 2,734,766$ 277,724 $ 3,012,490 $

As of June 30, 2024, the amounts re ported as deferred inflows of resources will be recognized as lease revenue as follows:

Year Ending
June 30 Total
2025 410,530 $
2026 380,192
2027 369,073
2028 313,480
2029 308,326
2030-2034 740,448
2035-2039 30,530
2040-2043 23,915
2,576,494$

Note 4 – Loans Receivable

A. Government-Wide Financial Statements

At June 30, 2024, the City had the following loans receivable balances outstanding:

Morgan Tower Housing Associates, LP 15,035,315 $
Kimball Tower Housing Associates, LP 19,873,308
Vista Del Sol 7,096,654
Plaza City Apartments, LP 3,422,000
Home Improvement Loan Program 23,199
First Time Home Buyers Program 2,692,453
Owner Occupied Loan Program 308,601
Rental Rehabilitation Loan Program 3,332,500
Paradise Creek, LP 5,721,547
Subtotal 57,505,577
Less: allowance for doubtful accounts (11,905,971)
Total 45,599,606$

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

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 f ee-simple ownership of the land thro ugh a 99 year-ground lease. The CDC- HA 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 mandatory annual payments, the fi rst of which was $222,000. That payment increases by 3.50% per year following the base year . In years when the operating statement for Morgan Tower shows a positive cash flow, an additional payment is required in the amount of 50% of residual receipts. At June 30, 2024, the outstanding balance was $15,035,315.

Kimball Tower Housing Associates, LP

On March 28, 2019, the CDC-HA sold 151 units (149 affo rdable units and 2 manager’s units) of housing for low- income senior households located at 1317 D Avenue, Nationa l City to Kimball Tower Housing Associates, L.P., for $28,800,000. The CDC-HA sold only the improvements and retained fee-simple ownership of the land through a 99 year-ground lease. The CDC-HA provided a seller carryback note totaling $19,374,337. The note carries a 55-year term with interest compounding annually at 2.91% and has mandatory annual payments, the first of which was $253,000. That paymen t increases by 3.50% per year following the base year. In years where the operating statement for Kimball Tower shows a positive cash flow, an additional payment is required in the amount of 50% of residual receipts. At June 30, 2024, the outstanding balance was $19,873,308.

Vista Del Sol (formerly Copper Hills Apartment, LP)

In 1999, the Community Development Commission of the C ity of National City (CDC) entered into several loan agreements with Copper Hills Apartments, LP. CDC Residua l 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-and- Moderate-Income Housing Funds. A second and junior to the CDC Residual Receipts Note was made on June 3, 1999 for $4,400,000, referred to as CDC Rehabilitation Note w ith 3% interest per annum for 55 years and funded by the Low-and-Moderate-Income Housing Fund (currently Housing Asset Fund). These loans were made to acquire, develop, rehabilitate and operate the multi-fam ily apartments located at “Q” Avenue in the City that included 132 apartment dwelling units. In December 2017 , Vista Del Sol Apartments, LP acquired the property and assumed the rights and obligations of Copper Hills Apartments, LP. The two original loans were consolidated into a single note of $7,407,795 based on the amount of the outstanding prin cipal and accrued interest on the two original loans. At June 30, 2024, the outstanding balance was $7,096,654 with an associated contractual allowance of $2,459,018.

Plaza City Apartments, LP

The CDC of the City of National Ci ty entered into a Loan Agreement with Plaza City Apartments, LP on November 1, 2005 in the amount of $2,700,000 with 3% interest per annum for 55 years. It was amended per Resolution No. 2006-202 dated September 19, 2006 which increased the loan amount by $722,000 for a total of $3,422,000. This loan was to be used by the borrower to pay the balance of the purchase price and additional costs relating to the acquisition, demoliti on and development of certain real property located at 1535 Plaza Blvd., National City, CA. At June 30, 2024, the outstanding ba lance of loans made was $3,422,000 with an associated contractual allowance of $3,422,000.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

65 Note 4 – Loans Receivable (Continued)

A. Government-Wide Financial Statements (Continued)

Home Improvement Loan Program

The City of National City Home Improvement Loan Pr ogram was administered by the Housing Authority and funded with Community Development Bl ock Grant funds. The loan program pr ovided loans to owners of single- family residences that wished to rehabilitate their property, providing for safe, decent, and sanitary housing throughout National City. The loan program provided favor able terms of repayment and stopped issuing loans in 2002. At June 30, 2024, the outstanding balance of the loans made was $23,199.

First Time Home Buyers Program

The City of National City First-Time Homebuyer Assi stance Program is currently funded through HUD HOME Investment Partnerships Program and previously was also funded with the State of California Low- and Moderate-Income Housing Set-Aside funds. The Program is currently ad ministered 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, 2024, the outstanding balance of the loans made was $2,692,453 with an allowance for doubtful accounts of $2,692,453.

Owner Occupied Loan Program

The City of National City Owner Occupied Loan Progr am is administered by the Housing Authority. The program provides loans to owners of single-family reside nces that wish to rehabilitate their property, providing for safe, decent, and sanitary housing throughout Nationa l City. Principal payment on the loans provided is deferred for 30 years. At June 30, 2024, the outstanding balance of the loans made was $308,601.

Rental Rehabilitation Program

The City of National City Rental Rehabilitation Loan Pr ogram is administered by the Housing Authority and funded through HUD HOME Investment Partnerships Pr ogram and the Low- and Moderate-Income Housing Asset Fund. The program offers gap fi nancing to developers for the rehab ilitation of multi-family complexes and also provides for long-term rental assistance to deed-restri cted units. At June 30, 2024, the outstanding balance of loans made was $3,332,500 with an allowance for doubtful accounts of $3,332,500.

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 “Devel oper”) 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 E nhancement 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, 2024, the note receivable amount is $5,721,547. The Developer will repay the loan with residual receipt s to the Community Development Commission-Housing Authority of the City of National City (“CDC-HA”).

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

66 Note 4 – Loans Receivable (Continued)

B. Fiduciary Fund Financial Statements

At June 30, 2024, the Agency had the following loans receivable, including principal and accrued interest:

National City Mile of Cars 244,424 $
Constellation Property Group 2,500,000
Subtotal 2,744,424
Less: allowance for doubtful accounts (2,500,000)
Total 244,424$

National City Mile of Cars

In July 20, 2010, the Community Development Commissi on of the City of National City (“Commission”), and Mile of Cars Association (“Partic ipant”) entered into an agreemen t (Freeway Sign Rehabilitation Loan Agreement) for the rehabilitation of existing equi pment and improvements constituting the signage. The Commission agreed to loan to the Participant the amount of $675,000 for said improvements. The Participant agreed to execute a promissory note to repay the Co mmission the full amount of the rehabilitation loan plus interest. As of June 30, 2024, the note receivable amount was $244,424.

Constellation Property Group (A Ave) LP

The CDC of the City entered into a loan agreemen t with Constellation Propert y Group (A Avenue), LP, a Delaware limited partnership, on D ecember 13, 2007, for the amount of $2 ,500,000 with interest of 10%, non- compounded, requiring no interim paym ent of principal and interest and maturing on December 13, 2010. The purpose of the loan was to assist w ith the development of the Centro Condominium project on A Avenue in National City – a 91,199 square foot, four story c ondominium project housing 61 residential units and 108 parking spaces. As of June 30, 2011, an allowance was a established for the entire amount of the note outstanding as collection of this note was not expected. At June 30, 2024, 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, 2024, interfund receivables and payables were as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund Other Special Revenue Fund 5,858,438 $ Overdrawn cash General Fund Non-Major Governmental Funds 1,798,727 Overdrawn cash Total 7,657,165$

Current interfund balances arise in the normal course of op erations to cover cash shortages and are expected to be repaid shortly after the end of the fiscal year.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

67 Note 5 – Interfund Balances and Transactions (Continued)

B. Transfers In/Out

For the year ended June 30, 2024, interfund transfers were as follows:

Transfers In Transfers Out Amount Purpose
General Fund ARPA 2,000,000 $ Operating subsidy
General Fund Other Special Revenue Fund 5,500 Operating subsidy Sub total 2,005,500
Other Special Revenue Fund General Fund 397,571 Operating subsidy POB Debt Service Fund General Fund 5,261,173 Debt service POB Debt Service Fund Housing Authority Special Revenue Fund 56,457 Debt service POB Debt Service Fund Sewer Special Revenue Fund 99,142 Debt service POB Debt Service Fund Other Special Revenue Fund 13,981 Debt service POB Debt Service Fund Library Special Revenue Fund 72,019 Debt service POB Debt Service Fund Nutrition Special Revenue Fund 43,901 Debt service POB Debt Service Fund Parks Maintenance Special Revenue Fund 102,510 Debt service POB Debt Service Fund Motor Vehicle Internal Service Fund 38,534 Debt service POB Debt Service Fund Info Systems Maintenance Internal Service Fund 46,034 Debt service POB Debt Service Fund Liability Insurance Internal Service Fund 5,927 Debt service POB Debt Service Fund Facilities Maintenance Internal Service Fund 66,789 Debt service Sub total 5,806,467
Library Special Revenue Fund General Fund 1,333,616 Operating subsidy Parks Maintenance Special Revenue Fund General Fund 1,060,499 Operating subsidy Nutrition Special Revenue Fund General Fund 227,900 Operating subsidy Nutrition Special Revenue Fund Housing Authority Special Revenue Fund 564,151 Operating subsidy Sub total 792,051
Facilities M aintenance Intenal Service Fund Nutrition Special Revenue Fund 48,000 Maintenance Vehicle Replacement Reserve IS Fund Nutrition Special Revenue Fund 155,486 Vehicle purchases Vehicle Replacement Reserve IS Fund Other Special Revenue Fund 450,000 Vehicle purchases Sub total 605,486
Total 12,049,190$

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

68 Note 6 – Capital Assets

Governmental Activities

A summary of changes in capital assets for governmental activities for the year ended June 30, 2024 is as follows:

Balance Transfers/ Balance
July 1, 2023 Additions Deletions Reclassifications June 30, 2024 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 38,237,313 8,271,278 - (1,948,471) 44,560,120 Total capital assets, not being depreciated/amortized 68,079,410 8,271,278 - (1,948,471) 74,402,217 Capital assets, being depreciated/amortized:

Buildings and improvements 63,269,402 - - - 63,269,402 Machinery and equipment 24,724,176 2,481,469 - - 27,205,645 Infrastructure 166,837,575 4,860,512 - 1,948,471 173,646,558 Right-to-use lease assets 598,752 - - - 598,752 Radio rights 1,270,763 - - - 1,270,763 Subtotal 256,700,668 7,341,981 - 1,948,471 265,991,120 Less accumulated depreciation/amortization:

Buildings and improvements (41,441,693) (1,982,379) - - (43,424,072) Machinery and equipment (18,661,679) (1,793,694) - - (20,455,373) Infrastructure (85,290,344) (3,398,382) - - (88,688,726) Right-to-use lease assets (497,307) - - - (497,307) Radio rights (444,766) (63,538) - - (508,304) Subtotal (146,335,789) (7,237,993) - - (153,573,782) Total capital assets, being depreciated/amortized 110,364,879 103,988 - 1,948,471 112,417,338 Total capital assets, net 178,444,289$ 8,375,266 $ - $ - $ 186,819,555$

Depreciation and amortization expense was charged to functions/programs as follows:

General government 696,462 $
Public safety 1,053,827
Transportation 3,648,698
Community development 16,379
Culture and leisure 584,748
Internal service funds 1,237,879
Total depreciation/amortization expense 7,237,993$

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

69 Note 7 – Long-Term Debt

A. Governmental Activities

A summary of changes in governmental activities long-term debt for the year ended June 30, 2024 is as follows:

Balance Debt Debt Balance Due within Due in More
June 30, 2023 Issued Retired June 30, 2024 One Year Than One Yea r Long-term debt:

Public offerings:
2012 General Obligation Bonds 2,175,000$ - $ (330,000)$ 1,845,000 $ 340,000 $ 1,505,000 $ Bond premium 8,023 - (1,605) 6,418 - 6,418 Section 108 Bonds 605,000 - (605,000) - - - 2017 Clean Energy Bonds 1,800,000 - (84,635) 1,715,365 90,313 1,625,052 2017 Lease Revenue Bonds 2,743,061 - (120,936) 2,622,125 130,427 2,491,698 2021 Pension Obligation Bonds 81,330,000 - (3,655,000) 77,675,000 3,680,000 73,995,000 Bond discount (135,696) - 7,142 (128,554) - (128,554) Priv ate placements:

Notes payable 418,569 - (135,702) 282,867 139,488 143,379 Lease liabilities 326,372 - (158,702) 167,670 167,670 - Total lon g-term debt 89,270,329$ - $ (5,084,438)$ 84,185,891 $ 4,547,898 $ 79,637,993 $ 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 Obligati on Bonds. No 2002 General Obligation Bonds remain outstanding. The bonds mature annually through Augus t 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 prov isions. As of June 30, 2 024, the outstanding balance is $1,845,000.

The annual debt service requirements for the 2012 Ge neral Obligation Refunding Bonds outstanding at June 30, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
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 1,845,000$ 163,001 $ 2,008,001 $

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, 2024, the outstanding balance was paid in full.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

70 Note 7 – Long-Term Debt (Continued)

A. Governmental Activities (Continued)

2017 Clean Energy Bonds and 2017 Lease Revenue Bonds

In July 2017, the National City Joint Powers Financi ng Authority (“NCJPFA”), pursuant to a facilities lease and facilities sublease with the City of National City, issu ed $1,800,000 of taxable clean renewable energy bonds under Section 54C(a) of the Internal Re venue 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 Agreemen t 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 se mi-annually on each December 1 and June 1, commencing December 1, 2017. At June 30, 2024, the outstanding balances were $1,715,365 a nd $2,622,125 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, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
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 115,554 62,250 177,804
2030-2034 688,621 219,236 907,857
2035-2037 513,661 44,309 557,970 Total 1,715,365$ 625,095 $ 2,340,460 $

The annual debt service requirements for the 2017 Lease Revenue Bonds outstanding at June 30, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
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 173,142 55,285 228,427
2030-2034 1,056,690 196,303 1,252,993 2035-2037 808,982 40,143 849,125 Total 2,622,125$ 555,458 $ 3,177,583 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

71 Note 7 – Long-Term Debt (Continued)

A. Governmental Activities (Continued)

2021 Pension Obligation Bonds

On November 16, 2021, the City issued the 2021 Ta xable 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. Princi pal 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, 2024, was $77,675,000.

The annual debt service requirements for the 2021 Pension Obligation Bonds outstanding at June 30, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
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 3,715,000 1,876,729 5,591,729
2030-2034 19,125,000 7,993,071 27,118,071
2035-2039 20,475,000 5,074,059 25,549,059
2040-2043 19,630,000 1,477,880 21,107,880
Total 77,675,000$ 24,588,160 $ 102,263,160 $

Notes Payable

San Diego County Regional Communication System

In 2017, the County of San Diego (the “County”) and certa in 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 syst em, microwave backhaul network, and a conventional voice system. The City entered into a financing agreemen t with the County of San Diego to pay for a share of backbone infrastructure cost of the new system. The am ount financed for this project was $1,270,762 at an annual interest rate of 2.79% for a to tal 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, 2024

72 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, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
2025 139,488$ 7,892 $ 147,380 $
2026 143,379 4,001 147,380
Total 282,867$ 11,893 $ 294,760 $

Lease Liabilities

Honeywell Lease

A fifteen-year contract was entered into on March 16, 20 10 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 (Pub lic Works, Police Station and MLK Community Center). Quarterly payments in arr ears 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, 2024 on this contract was $167,670.

The future minimum lease obligation and the net presen t value of these minimum lease payments as of June 30, 2024, are as follows:

Year Ending
June 30, Principal Interest Total
2025 167,670 $ 5,205 $ 172,875 $ Total 167,670$ 5,205 $ 172,875 $

B. Fiduciary Funds

A summary of changes in fiduciary funds long-term debt for the year ended June 30, 2024 is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2023 Issued Retired June 30, 2024 One Year Than One Year 2017A Tax Allocation
Refunding Bonds 31,079,000 $ - $ (3,065,000)$ 28,014,000 $ 3,139,000 $ 24,875,000 $ 2017B Tax Allocation
Refunding Bonds 1,649,000 - (221,000) 1,428,000 224,000 1,204,000 Total 32,728,000$ - $ (3,286,000)$ 29,442,000 $ 3,363,000 $ 26,079,000 $ Classification

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

73 Note 7 – Long-Term Debt (Continued)

B. Fiduciary Funds (Continued)

2017 Series A and B Tax Allocation Refunding Bonds

In September 2017, the Successor Agen cy to the Community Developmen t Commission as the National City Redevelopment Agency issued $45,874,000 in Tax A llocation Refunding Bonds, Series 2017A, and $2,669,000 in Tax Allocation Refunding Bonds, Series 2017B, to re deem 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 paya ble annually on August 1 for both seri es of bonds. Interest is payable semi- annually for both series of bonds on Febr uary 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 pr esent 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, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
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 2,934,000 1,387,092 4,321,092
2029 2,998,000 355,571 3,353,571
2030-2033 12,778,000 642,485 13,420,485
Total 28,014,000$ 4,125,783 $ 32,139,783 $

The annual debt service requirements for the 2017 Series B Tax Allocation Bonds outs tanding at June 30, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
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 246,000 8,851 254,851
2030 252,000 2,975 254,975
Total 1,428,000$ 103,322 $ 1,531,322 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

74 Note 7 – Long-Term Debt (Continued)

B. Fiduciary Funds (Continued)

Pledged Revenues

The Successor Agency has pledged tax revenues to the repayment of the RDA’s debts transferred to it on February 1, 2012 through the final maturity of the Bonds, or early retirement of the Bonds, whichever comes first.

Tax revenues consist of property tax revenues allocated to the Redevelopm ent Property Tax Trust Fund (RPTTF) for the Successor Agency that is maintained by the County of San Die go Auditor and Controller. The amounts so allocated are those that would have been allocated to the RDA had the R DA not been dissolved. The Auditor and Controller (A&C) then distributes RPTTF revenues to the Successor Agency based on Recognized Obligation Payment Schedules (ROPS) as approved by the Californi a State Department of Finance (DOF) and after deducting amounts for A&C administrative costs and amount s 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 2024, property tax revenue in the am ount of $30,226,305 was deposited to the RPTTF for the Successor Agency. After deductions for County admini strative fees and pass-through payments, the RPTTF revenue available for distribution to the Successor Agency was $23,169,298. The actual amount of RPTTF revenue authorized by the State Department of Finance to be distributed to the Successor Agency was $3,950,251.

This distribution took into account previously allocated , but unspent RPTTF in previous ROPS periods and did not affect the ability of the Successor Ag ency to meet its debt service obligation. Total debt service for all Tax Allocation Refunding Bonds (TARBs) in fiscal year 2024 was $4,058,091, 20% of th e RPTTF revenue available for distribution to the Successor Agency . Beyond fiscal year 2024 and through final maturity in fiscal year 2033, these annual payments will gradually d ecline from $4.1 million in fiscal year 2023 to $3.3 million in fiscal year 2033. The percentage of available R PTTF 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, 2024 is as follows:

Balance Balance Due within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Compensated Absences 4,472,190$ 2,936,902 $ (2,711,493) $ 4,697,599 $ 2,711,493 $ 1,986,106 $ Total 4,472,190$ 2,936,902 $ (2,711,493) $ 4,697,599 $ 2,711,493 $ 1,986,106 $ Classification

The City’s liability for vested and unpa id compensated absences (accrued vaca tion, sick leave, and compensatory time) was $4,697,599 at June 30, 2024. For the gove rnmental activities, compen sated absences are generally liquidated by the General Fund.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

75 Note 8 – Compensated Absences (Continued)

Compensated absences at June 30, 2024 are obligations of the following funds:

General Fund 4,535,871 $
Facilities Maintenance 50,726
Liability Insurance 6,569
Information Systems Maintenance 47,285
Motor Vehicle Services 57,148
Total 4,697,599$

Note 9 – Other Required Disclosures

At June 30, 2024, the following funds had deficit fund balances/net position:

Fund Type Funds Deficit
Capital Projects Fund Proposition A (1,838,608)$
Fiduciary Fund Successor Agency To the Community Development Commission of National City Private-Purpose Trust Fund (21,235,250)$

Proposition A Capital Projects Fund – The Proposition A Capital Projects Fund had a deficit of $(1,838,608) resulting from capital expenses for the year ended June 30, 2024 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 Comm ission as the National City Redevelopment Agency (the “Successor Agency”) Private-Purpose Trust Fund – The Successor Agency to th e Community Development Commission as the National City Redevelopment Agency Pr ivate-Purpose Trust Fund had an accumulated deficit of $(21,235,250). The deficit w ill 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, 2024, the City had an unrestrict ed net position deficit of $(44,032,534) on the Statement of Activities. This deficit incorporates th e calculations resulting from the implementation of GASB Statement 68 (Net Pension Liability) in fiscal year 2015 and the implementation of GASB Statement 75 (Total OPEB Liability) in 2017. The City is addr essing the portion of the deficit attr ibutable to the GASB 68 reporting requirements through meeting its annu al 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 approx imately $83,260,000 of the City’s anticip ated unfunded liability. The City is addressing the OPEB liability by establishing an IRS Section 115 OPEB trust for approximately half of the liability while continuing to budget and pay for annual OPEB costs out of current resources.

Excess Expenditures Above Appropriations

For the year ended June 30, 2024, the following funds had expenditures that exceeded appropriations:

Excess
Expenditures
Above
Funds Appropriations
Housing Asset Special Revenue Fund 68,977 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

76 Note 10 – Self-Insurance Accrued Liabilities

The City is exposed to various risks of loss related to tort s; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and workers’ compensation clai ms. 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 pr emium expenses, self-insurance losses and other operating expenses.

The San Diego Pooled Insurance Program Authority (SANDPIPA) a joint powers authority (JPA), of which the City was a member, ceased operations on June 30, 2016. On July 1 st, 2016 the City became self-insured for General
Liability claims up to $250,000. This m eans that the City pays all claims up to $250,000 directly from City funds.

Claims between the self-insured retention (SIR) of $250,0 00 up to $5,000,000 are covered by Public Risk Innovation, Solutions and Management (formerly California State A ssociation 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 tota l amount of coverage for the Genera l Liability Program is $50,000,000.

PRISM is located in Folsom, California. All the coverages are administered by PRISM.

The City is completely self-insured for unemployment claims.

The City is self-insured for Workers’ Compensation claims up to $500,000 per occurrence. Claims between the self- insured retention level of $500,000 and $5,000,000 are c overed by PRISM which is reinsured by Great American.

Claims in excess of $5,000,000 up to $50,000,000 are c overed by PRISM which is reinsured by ACE American Insurance Company. Any statutory benefit in excess of $50,000,000 is covere d by Liberty Insurance Corporation.

There is no statutory limit for benefits paid on Workers’ Compensation claims.

During the current year, there were no significant reductions in insurance coverage from the prior year. For each of the past three fiscal years, the settlements have not exceeded the City’s insurance coverage.

At June 30, 2024, the City had an accr ued amount of $12,933,0 00 of workers’ compensation and general liability claims representing estimates of amounts to be paid for act ual and incurred but not reported claims based upon past experience, modified for current trends and information. Allocated claim adjustment e xpenses are included in claim liabilities. While the ultimate amount of losses incurred throu gh June 30, 2024 is dependent on future developments, based upon information from the City Attorney, outside c ounsel and others involved with the administration of the programs, City management believes that the aggregate accr ual 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:

2024 2023 2022
Claims liabilities - beginning balance 11,292,000 $ 10,966,000 $ 11,948,000 $ 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 4,182,967 2,326,747 57,029 Payments on claims attributable to events of both
the current fiscal year and prior fiscal years (2,541,967) (2,000,747) (1,039,029) Claims liabilities - ending balance 12,933,000 $ 11,292,000 $ 10,966,000 $

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

77 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 19,613,847$
Safety Plan 32,647,085
Total 52,260,932$

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 1,755,191$ 1,012,280 $ 665,787 $ 6,757,858 $ 10,191,116 $ Safety Plan 3,826,756 3,441,684 1,424,454 10,973,767 19,666,661 Total 5,581,947$ 4,453,964 $ 2,090,241 $ 17,731,625 $ 29,857,777 $

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 443,084 $ 443,084 $ Safety Plan 1,701,754 1,701,754
Total 2,144,838$ 2,144,838 $

Pension Expense

Pension expenses are included in the accompanying Stat ement of Revenues, Expenses, and Changes in Net Position as follows:

Pension
Expense
Miscellaneous Plan 5,864,126$
Safety Plan 10,311,513
Total 16,175,639$

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

78 Note 11 – Pension Plans (Continued)

B. CalPERS Pension Plans

Plan Description

Substantially all City employees working the equivalent of 1,000 hours or mo re 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 Retiremen t Law. CalPERS issues publicly available reports that include a full description of the pension plans regard ing 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 beco mes eligible for Service Retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainme nt of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the pr oduct 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 comp ensation. Retirement benef its 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 fi nal 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 misce llaneous employees. The City provides industrial disability retirement benefit to safety employees. The industrial disab ility retirement benefit is a monthly allowance equal to 50% of final compensation.

An employee's beneficiary may receive the basic death be nefit if the employee dies while actively employed. The employee must be actively employed with the City to be e ligible for this benefit. An employee's survivor who is eligible for any other pre-retirement d eath benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per y ear, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximu m 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 paym ent of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.

Benefit terms provide for annual cost-o f-living adjustments to each employ ee’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.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

79 Note 11 – Pension Plans (Continued)

B. CalPERS Pension Plans (Continued)

Benefits Provided (Continued)

Employees Covered – At June 30, 2022, the valuation date, the following employees were covered by the benefit terms for each plan:

Miscellaneous Safety
Active employees 172 123
Transferred and terminated employees 259 85
Retired employees and beneficiaries 335 243

Contributions – Section 20814(c) of the California Public Em ployees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following no tice of a change in the rate. The tota l 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 employ ees during the year (the “normal cost” rate), with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined normal cost rate and the contribution rate of employees. For the measurement period ended June 30, 2023, the average active miscella neous and safety employee contribution rates were 8% and 9% of annual pay, respectively, and the employer’s normal cost contribution rates were 12.40% and 22.51% 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, 2024, the employer contributions, including for the unfunded accrued liability, were:

Aggregate
Miscellaneous Safety Total
Contributions - employe r 1,755,191$ 3,826,756 $ 5,581,947 $

Net Pension Liability

The City’s net pension liability is m easured as the total pension liability, l ess the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

80 Note 11 – Pension Plans (Continued)

B. CalPERS Pension Plans (Continued)

Net Pension Liability (Continued)

Actuarial Assumptions – The total pension liabilities in the June 30, 2022 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
M ortality 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 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, 2022 valuations were based on the results of a 2021 CalPERS Experience Study. Further details of the Experience Study can be found on the CalPERS website.

Changes of Assumptions

There were no changes of assumptions for the measurement period ended June 30, 2023.

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 di scount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets woul d 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 applie d 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 Crossove r Testing Report” that can be obt ained 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, 2024

81 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-te rm market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical return s of all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and two cost-s haring 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 nom inal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at th e same present value of benefits for cash flows as the one calculated using both short-term and long- term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest quarter of one percent.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determin e the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

The long-term expected rate of return by asset class for the measurement period ended June 30, 2023 was as follows:

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, 2024

82 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, 2022 (valuation date) 153,944,569 $ 136,798,544 $ 17,146,025 $ Changes in the year:

Service cost 2,153,323 - 2,153,323 Interest on the total pension liability 10,502,049 - 10,502,049 Changes of benefit terms 211,120 - 211,120 Changes of assumptions - - - Differences between expected and actual experience 1,109,645 - 1,109,645 Benefit payments, including refunds of members contributions (8,276,791) (8,276,791) - Plan to plan resource movement - (1,212) 1,212 Contributions - employer - 2,457,605 (2,457,605) Contributions - employees - 920,837 (920,837) Net investment income - 8,231,680 (8,231,680) Administrative expenses - (100,595) 100,595 Net changes 5,699,346 3,231,524 2,467,822 Balance at June 30, 2023 (measurement date) 159,643,915 $ 140,030,068 $ 19,613,847 $ Miscellaneous Plan

Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2022 (valuation date) 244,677,252 $ 216,271,614 $ 28,405,638 $ Changes in the year:

Service cost 4,803,289 - 4,803,289 Interest on the total pension liability 16,786,459 - 16,786,459 Changes of benefit terms 124,164 - 124,164 Changes of assumptions - - - Differences between expected and actual experience 1,977,698 - 1,977,698 Benefit payments, including refunds of members contributions (11,797,447) (11,797,447) - Plan to plan resource movement - 1,212 (1,212) Contributions - employer - 4,861,285 (4,861,285) Contributions - employees - 1,770,960 (1,770,960) Net investment income - 12,975,742 (12,975,742) Administrative expenses - (159,036) 159,036 Net changes 11,894,163 7,652,716 4,241,447 Balance at June 30, 2023 (measurement date) 256,571,415 $ 223,924,330 $ 32,647,085 $ Safety Plan

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

83 Note 11 – Pension Plans (Continued)

B. CalPERS Pension Plans (Continued)

Changes in the Net Pension Liability (Continued)

Sensitivity of the Aggregate Net Pension Li ability to Changes in the Discount Rate – The following presents the City’s net pension liability, calculated using the disc ount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90)
40,161,758$ 19,613,847 $ 2,647,376 $ 68,133,761$ 32,647,085 $ 3,684,406 $ 108,295,519$ 52,260,932 $ 6,331,782 $ Aggregate Total Safety Plan
Miscellaneous Plan
Plan's Aggregate Net Pension Liability/(Asset)

Pension Plan Fiduciary Net Position – Detailed information about each pens ion plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2024, the City recogni zed pension expense in the amounts of $5,864,126 and $10,311,513, for the Miscellaneous and Safety plans, respectively.

The amortization period differs depending on the source of th e gain or loss. The difference between projected and actual earnings is amortized over five years straight-lin e. All other amounts are amortized straight-line over the average expected remaining service lives of all members th at are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.

The Expected Average Remaining Serv ice Lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, in active, and retired) in the risk pool. The EARSLs for the Miscellaneous and Safety plans, respectively, for th e 2022-2023 measurement period are 2.5 and 3.3 years, respectively, which was obtained by dividing the total service years of 1,902 and 1,490, respectively, (the sum of remaining service lifetimes of the active employees) by 766 and 451, 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, 2024

84 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, 2024 the City reported deferred outflows of resources and defe rred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Contributions after measurement date 1,755,191 $ - $ Changes of assumptions 1,012,280 - Difference between expected and actual experience 665,787 (443,084) Difference between projected and actual earning on
pension plan investments 6,757,858 - Total 10,191,116$ (443,084) $
Deferred outflows Deferred inflows
of Resources of Resources
Contributions after measurement date 3,826,756 $ - $ Changes of assumptions 3,441,684 - Difference between expected and actual experience 1,424,454 (1,701,754) Difference between projected and actual earning on
pension plan investments 10,973,767 - Total 19,666,661$ (1,701,754) $
Deferred outflows Deferred inflows
of Resources of Resources
Contributions after measurement date 5,581,947 $ - $ Changes of assumptions 4,453,964 - Difference between expected and actual experience 2,090,241 (2,144,838) Difference between projected and actual earning on
pension plan investments 17,731,625 - Total 29,857,777$ (2,144,838) $
Miscellaneous Plan
Safety P lan
Aggregate Totals

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

85 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, $1,755,191 a nd $3,826,756, 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 liab ility in the year ended J une 30, 2025. 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
2025 2,423,188 $ 4,390,483 $ 6,813,671 $ 2026 1,211,506 2,832,280 4,043,786 2027 4,153,419 6,565,171 10,718,590 2028 204,728 350,217 554,945 2029 - - - Thereafter - - - 7,992,841$ 14,138,151 $ 22,130,992 $ Deferred Outflows/ (Inflows) of Resources

Note 12 – Other Postemployment Benefits

Plan Description

The City provides postemployment health benefits through a single-employer de fined benefit plan administered by the City. The City provides a fixed dollar contribution towa rds retiree health benefits for approximately 101 retirees.

In addition, 350 employees are currently working and earning service credit for e ligibility for a City contribution for retiree health benefits. To be eligible for a City contri bution, an employee must retir e from the City and commence pension benefits under CalPERS on or afte r age 50 with at least 20 years of service (five years for management and executive employees) with the City. Th e City provides a fixed dollar monthl y contribution equal to $10 ($20 for management, executive, and safety employees) times years of service. Employees may receive the contribution to use towards non-City health insurance, if evidence of coverage is provided. Th e City’s contribution is payable until Medicare eligibility, except management 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, 2024, the date of the latest actuarial valuation:

Active plan members 398
Retirees 68
Total 466

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

86 Note 12 – Other Postemployment Benefits (Continued)

Total OPEB Liability

The City’s total OPEB liability was measu red as of June 30, 2024. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valua tion as of June 30, 2024. The total OPEB liability at June 30, 2024 was:

Total OPEB liability 4,982,760 $
Total OPEB liability 4,982,760 $

Actuarial Assumptions

The total OPEB liability in the June 30, 2024 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
M ortality, Termination, and Disability
M ortality Improvement Scale
Pre-retirement turnover
Healthcare Trend Rate
Modi fi e d MP-2021

4.21%

2.50%

2.80%
n/a
CalPERS 2021
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, 2024 valuati on were based on the results of an actuarial experience study for the period July 1, 2007 through June 30, 2014.

Discount Rate

The discount rate used to measure the total OPEB lia bility was 4.21 percent at the measurement date of June 30, 2024. It was changed from 4.13 percent at the measure ment date of June 30, 2023 . 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, 2024

87 Note 12 – Other Postemployment Benefits (Continued)

Change in the Total OPEB Liability

Total OPEB
L iability
Balance at June 30, 2023 4,832,170 $
Changes Recognized for the Measurement Period:

Service Cost 166,431
Interest on the total OPEB liability 200,253
Changes of benefit terms -
Difference between expected and actual experience 166,264 Changes of assumptions (79,598)
Contributions from the employer -
Net investment income -
Administrative expenses -
Benefit payments (302,760)
Net Changes during July 1, 2023 to June 30, 2024 150,590 Balance at June 30, 2024 (Measurement Date) 4,982,760 $

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 C ity’s total OPEB liability would be if it were calculated using a discount rate th at is 1-percentage-point lower (3.21 percent) or 1-percentage- point higher (5.21 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(3.21%) Rate (4.21%) (5.21%)
5,426,302$ 4,982,760 $ 4,993,896 $ Plan's Total OPE B L iability

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 C ity’s total OPEB liability would be if it were calculated using healthcare cost trend rates that ar e 1-percentage-point lower (7.0 percent decreasing to 3.5 percent) or 1-percentage-point higher (9.0 percent decreasi ng to 5.5 percent) than the current healthcare cost trend rates:

Healthcare Cost
Discount Rate - 1% Trend Rates Discount Rate + 1%
(7.0% decreasing (6.75% decreasing (9.0% decreasing
to 3.5%) to 4.5%) to 5.5%)
4,975,137$ 4,982,760 $ 4,988,994 $ Plan's Total OPE B L iability

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

88 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 Counc il and labor agreement requirements is based on a pay-as-you- go basis (i.e., as medical insurance premiums become due). For fiscal year 2024, the City contributed $302,760 to the plan for current premiums. In fiscal y ear 2021, the City established an IRS S ection 115 OPEB trust. The balance at June 30, 2024 is $3,539,380. 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, 2024, the City recognized OPEB expense of $273,253.

At June 30, 2024, the City reported de ferred 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 151,149 $ 291,602 $ Changes of assumptions 285,956 876,920 Total 437,105$ 1,168,522 $

Amounts reported as deferred outflows of resources and de ferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

M easurement Period Deferred Outflows/
Ended June 30, (Inflows) of Resources
2025 (93,431) $
2026 (86,771)
2027 (61,631)
2028 (61,635)
2029 (91,312)
Thereafter (336,637)
(731,417)$

Note 13 – Commitments and Contingencies

Litigation

The City is presently involved in certain matters of litiga tion 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 program s 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, 2024

89 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 a nd regulations. The City believes no si gnificant liabilities will result should any audits be performed.

Contractual Commitments

The City has contractual and regulatory commitments that w ill result in expenses in future fiscal years. These include operating and capital contractual commitments. As of June 30, 2024, the City had a total of 444 contractual commitments with a remaining balance of $87,444,927. The following table represents the City’s contractual commitments by contract type.

Construction 15,846,686 $
Consulting services 64,076,821
Legal services 730,223
Professional services 6,791,197
Total contractual commitments 87,444,927$

Encumbrances

At June 30, 2024, the amount of encu mbrances within the governmental funds th at are expected to be honored upon performance by the vendor in the next year were as follows:

General Fund 1,685,937 $
Housing Asset Fund 3,500
Housing Choice Voucher Program Fund 7,377
Sewer Service Fund 1,071,163
ARPA Fund 130,501
Other Special Revenue Fund 2,613,535
Housing Authority Fund 26,565
Aggregate non-major funds 1,817,867
Total encumbrances 7,356,445$

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

90 Note 14 – Classification of Fund Balances

The City classifies fund balances, as shown on the Balance Sheet – Governmental Funds as of June 30, 2024 as follows:

Housing Choice Housing Other
Voucher S ewer ARPA O ther 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 64,684 - - - - - 25,805 - - 90,489 Total nonspendable 4,085,866 - - - - - 25,805 - - 4,111,671 Restricted
Housing - 12,310,205 875,349 - - 78,684 51,304,983 - - 64,569,221 Debt service - - - - - - - 9,699 955,211 964,910 Community development 20,000 - - - - - - - 1,080,509 1,100,509 Public safety - - - - - - - - 320,086 320,086 Transportation - - - - - - - - 2,418,362 2,418,362 General services - - - 29,355,250 - - - - 2,456,393 31,811,643 Section 115 OPEB trust 3,539,380 - - - - - - - - 3,539,380 Section 115 pension trust 7,222,427 - - - - - - - - 7,222,427 Total restricted 10,781,807 12,310,205 875,349 29,355,250 - 78,684 51,304,983 9,699 7,230,561 111,946,538 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 4,535,871 - - - - - - - - 4,535,871 Culture and leisure 639,967 - - - - - - - - 639,967 Public safety 31,100 - - - - - - - - 31,100 Transportation 1,964,550 - - - - - - - - 1,964,550 General services 3,525,525 - - - - - - - - 3,525,525 Total assigned 10,697,013 - - - - - - - - 10,697,013 Unassigned (deficit) 26,654,907 - - - - - - - (1,838,608) 24,816,299 Total fund balances 67,899,593$ 12,310,205 $ 875,349 $ 29,355,250 $ - $ 78,684$ 51,330,788$ 9,699 $ 5,391,953$ 167,251,521 $ Major Funds

Categorization of Reserves under Adopted City Policies

The City has a policy that governs the accumulation and ma intenance 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 th is 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, 2024 was $7,497,713.

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, 2024 was $3,539,380.

3) Economic Contingency Reserve – represents funds that are set-aside for use only in exceptional circumstances such as catastrophic events that could negatively im pact the financial condition of the City .

The targeted funding level is 20% of a single yea r’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, 2024 w as $12,800,000 and is equal to the target level.

City of National City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024

91 Note 14 – Classification of Fund Balances (Continued)

Categorization of Reserves under Adopted City Policies (Continued)

4) Facilities Maintenance Reserve – represents funds that are set aside for extraordinary major maintenance costs that cannot be met within the annual budgete d amount and for which no other funding source is available. The targeted reserve level represents th ree times the annual amount to be budgeted for major maintenance projects. City Council approval is required for all additions to or transfers and expenditures from this reserve. The amount of the Facilities Maintenan ce Reserve as of June 30, 2024 was $2,880,000 and is equal to the target level.

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 expenditu res. Amounts in excess of the target level will be used to increase or replenish other reserves (with prio rity given to the Economic Contingency and Facilities Maintenance reserves), to set aside resources for speci fic 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, 2024, the unassigned fund balance was $26,654,907 which is above the target level of $6.1 million.

Note 15 – Net Investment in Capital Assets

At June 30, 2024, the net investment in capital assets cat egory of net position for the governmental-activities was calculated as follows:

Net Investment
in Capital Assets
Non-depreciable/amortizable capital assets 74,402,217$
Depreciable/amortizable capital assets, net 112,417,338 Deferred loss on refunding 16,800
2012 General Obligation Bonds (1,845,000)
Bond premium (6,418)
2017 Clean Energy Bonds (1,715,365)
2017 Lease Revenue Bonds (2,622,125)
Notes payable (282,867)
Lease liabilities (167,670)
Total net inv estment in capital assets 180,196,910$

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93 REQUIRED SUPPLEMENTARY

INFORMATION

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City of National City
Required Supplementary Information (Unaudited)
Budgetary Information
For the Year Ended June 30, 2024

95 The City follows these procedures in establishing the bud getary 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, ge nerally 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 en cumbered from the prior y ear for capital projects or outstanding purchase orders.

Formal budgetary integration is employe d as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded dur ing 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, a nd 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 C onstitution (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 Stat e Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year.

Further, Section 5 of Article XIIIB allows the City to d esignate 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, 2024

96 Actual Variance with
Original Final Amounts Final Budget
REVENUES :

Taxes 59,347,680 $ 59,347,680 $ 62,178,442 $ 2,830,762 $ Licenses and permits 868,804 868,804 994,198 125,394 Fines and forfeitures 731,198 731,198 560,697 (170,501) Use of money and property 1,516,936 1,516,936 5,505,978 3,989,042 Intergovernmental 1,235,516 1,235,516 934,022 (301,494) Charges for services 3,608,852 3,687,588 3,295,758 (391,830) Other revenues 802,591 802,591 500,534 (302,057) Total revenues 68,111,577 68,190,313 73,969,629 5,779,316 EXPENDITURES :

Current:

General government 11,514,687 11,667,405 9,781,914 1,885,491 Public safety 43,208,928 43,529,117 40,982,897 2,546,220 Transportation 4,633,703 5,754,954 4,858,238 896,716 Community development 289,232 289,232 227,624 61,608 Culture and leisure 4,700,277 4,852,508 3,850,661 1,001,847 Capital outlay 3,310,000 8,600,671 1,939,247 6,661,424 Debt service:

Principal 324,738 324,738 356,664 (31,926) Interest and fiscal charges 182,256 182,256 172,753 9,503 Total expenditures 68,163,821 75,200,881 62,169,998 13,030,883

REVENUES OVER
(UNDER) EXPENDITURES (52,244) (7,010,568) 11,799,631 18,810,199

OTHER FINANCING SOURCES (USES)
Transfers in 2,005,500 2,005,500 2,005,500 - Transfers out (2,999,446) (3,272,946) (8,280,759) (5,007,813) Total other financing sources (uses) (993,946) (1,267,446) (6,275,259) (5,007,813) Net change in fund balance (1,046,190)$ (8,278,014) $ 5,524,372 13,802,386 $ Fund Balance:

Beginning of year 62,375,221
End of year 67,899,593$
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, 2024

97 Actual Variance with
Original Final Amounts Final Budget
REVENUES :

Use of money and property 162,981 $ 162,981 $ 269,931 $ 106,950 $ Total revenues 162,981 162,981 269,931 106,950 EXPENDITURES:

Current:

Community development 162,997 268,831 337,808 (68,977) Total expenditures 162,997 268,831 337,808 (68,977) Net change in fund balance (16)$ (105,850)$ (67,877) 37,973 $ Fund Balance:

Beginning of year 12,378,082
End of year 12,310,205$
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, 2024

98 Actual Variance with
Original Final Amounts Final Budget
REVENUES :

Fines and forfeitures 30,000 $ 30,000 $ - $ (30,000)$ Use of money and property - - 3,671 3,671 Intergovernmental 15,553,578 15,553,578 18,091,824 2,538,246 Total revenues 15,583,578 15,583,578 18,095,495 2,511,917 EXPENDITURES:

Current:

Community development 15,579,947 15,579,947 17,846,636 2,266,689 Capital outlay 5,000 172,843 4,623 (168,220) Total expenditures 15,584,947 15,752,790 17,851,259 2,098,469 Net change in fund balance (1,369)$ (169,212) $ 244,236 413,448 $ Fund Balance:

Beginning of year 631,113
End of year 875,349$
Budgeted Amounts

City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Sewer Special Revenue Fund For the Year Ended June 30, 2024

99 Actual Variance with
Original Final Amounts Final Budget
REVENUES :

Use of money and property - $ - $ 1,151,945$ 1,151,945 $ Charges for services 11,812,000 11,812,000 12,236,588 424,588 Total revenues 11,812,000 11,812,000 13,388,533 1,576,533 EXPENDITURES:

Current:

Health 10,183,175 10,234,232 8,618,475 1,615,757 Capital outlay 3,000,000 8,176,375 1,597,663 6,578,712 Total expenditures 13,183,175 18,410,607 10,216,138 8,194,469 Net change in fund balance (1,371,175)$ (6,598,607) $ 3,073,253 9,671,860 $ Fund Balance:

Beginning of year 26,281,997
End of year 29,355,250$
Budgeted Amounts

City of National City
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – ARPA Special Revenue Fund For the Year Ended June 30, 2024

100
Actual Variance with
Original Final Amounts Final Budget
REVENUES :

Intergovernmental 2,000,000 $ 2,000,000 $ 4,056,132 $ 2,056,132 $ Total revenues 2,000,000 2,000,000 4,056,132 2,056,132 EXPENDITURES :

Current:

General government - 125,329 - 125,329 Capital outlay - 7,905,652 2,056,132 5,849,520 Total expenditures - 8,030,981 2,056,132 5,974,849

REVENUES OVER
(UNDER) EXPENDITURES 2,000,000 (6,030,981) 2,000,000 8,030,981 OTHER FINANCING (USES):

Transfers out (2,000,000) (2,000,000) (2,000,000) - Total other financing (uses) (2,000,000) (2,000,000) (2,000,000) - Net change in fund balance -$ (8,030,981)$ - 8,030,981$ 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, 2024

101
Actual Variance with
Original Final Amounts Final Budget
REVENUES :

Taxes 492,413 $ 492,413 $ 476,716 $ (15,697) $ Licenses and permits 487,000 487,000 390,686 (96,314) Fines and forfeitures 35,000 35,000 95,627 60,627 Use of money and property - - 159,635 159,635 Intergovernmental 586,957 6,351,162 4,784,679 (1,566,483) Charges for services 55,000 55,000 178,373 123,373 Total revenues 1,656,370 7,420,575 6,085,716 (1,334,859) EXPENDITURES:

Current:

General government 360,000 360,000 396,043 (36,043) Public safety 926,457 2,368,201 1,298,438 1,069,763 Community development - 156,522 107,762 48,760 Health 203,729 459,166 284,383 174,783 Culture and leisure 170,220 220,108 157,835 62,273 Capital outlay 2,000,000 34,342,982 6,009,703 28,333,279 Total expenditures 3,660,406 37,906,979 8,254,164 29,652,815

REVENUES OVER
(UNDER) EXPENDITURES (2,004,036) (30,486,404) (2,168,448) 28,317,956 OTH E R F I NA NCI NG SOU R CE S (U SE S):

Transfers in 377,431 377,431 397,571 20,140 Transfers out (455,500) (455,500) (469,481) (13,981) Total other financing sources (uses) (78,069) (78,069) (71,910) 6,159 Net change in fund balance (2,082,105)$ (30,564,473) $ (2,240,358) 28,324,115 $ Fund Balance:

Beginning of year 2,319,042
End of year 78,684$
Budgeted Amounts

102

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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, 2024

103
Actual Variance with
Original Final Amounts Final Budget
REVENUES :

Use of money and property 775,151 $ 775,151 $ 1,843,068 $ 1,067,917 $ Intergovernmental - 362,727 869,870 507,143 Other revenues 86,430 86,430 169,908 83,478 Total revenues 861,581 1,224,308 2,882,846 1,658,538 EXPENDITURES :

Current:

Community development 1,076,327 11,829,861 745,689 11,084,172 Total expenditures 1,076,327 11,829,861 745,689 11,084,172

REVENUES OVER
(UNDER) EXPENDITURES (214,746) (10,605,553) 2,137,157 12,742,710 OTHER FINANCING (USES):

Transfers out (564,151) (564,151) (620,608) (56,457) Total other financing (uses) (564,151) (564,151) (620,608) (56,457) Net change in fund balance (778,897)$ (11,169,704) $ 1,516,549 12,686,253 $ Fund Balance:

Beginning of year 49,814,239
End of year 51,330,788$
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, 2024

104
City Miscellaneous Plan
Total pension liability 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Service cost 2,153,323 $ 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 10,502,049 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 1,109,645 (1,920,034) 909,313 1,074,893 147,608 371,057 (1,231,712) (975,368) (1,691,529) - Changes in benefit terms 211,120 - - - - - - - - - Benefit payments, including refunds of employee contributions (8,276,791) (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 5,699,346 6,926,127 5,729,258 5,859,989 5,320,502 4,616,511 10,847,112 3,865,072 1,165,667 4,866,610 Total pension liability - beginning 153,944,569 147,018,442 141,289,184 135,429,195 130,108,693 125,492,182 114,645,070 110,779,998 109,614,331 104,747,721 Total pension liability - ending (a) 159,643,915$ 153,944,569 $ 147,018,442 $ 141,289,184 $ 135,429,195 $ 130,108,693 $ 125,492,182 $ 114,645,070 $ 110,779,998 $ 109,614,331 $ Plan fiduciary net position
Contributions - employer 2,457,605 $ 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 920,837 914,564 859,274 944,908 1,041,592 933,458 858,901 820,175 895,912 767,784 Investment income (net of administrative expenses) 8,231,680 (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 (8,276,791) (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 (1,212) - - - - (221) - (135) - - Administrative expenses (100,595) (76,605) (102,218) (140,408) (67,699) (406,601) (122,207) (51,483) (94,900) - Net change in plan fiduciary net position 3,231,524 13,825,323 20,646,435 2,729,453 4,420,968 5,169,870 7,234,496 (1,702,576) (278,407) 10,683,750 Plan fiduciary net position - beginning 136,798,544 122,973,221 102,326,786 99,597,333 95,176,365 90,006,495 82,771,999 84,474,575 84,752,982 74,069,232 Plan fiduciary net position - ending (b) 140,030,068$ 136,798,544 $ 122,973,221 $ 102,326,786 $ 99,597,333 $ 95,176,365 $ 90,006,495 $ 82,771,999 $ 84,474,575 $ 84,752,982 $ Net pension liability - ending (a)-(b) 19,613,847$ 17,146,025 $ 24,045,221 $ 38,962,398 $ 35,831,862 $ 34,932,328 $ 35,485,687 $ 31,873,071 $ 26,305,423 $ 24,861,349 $ Plan fiduciary net position as a percentage of the
total pension liability 87.71% 88.86% 83.64% 72.42% 73.54% 73.15% 71.72% 72.20% 76.25% 77.32% Covered payroll 10,975,144 $ 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 covered-
employee payroll 178.71% 152.88% 207.18% 345.52% 309.37% 293.91% 330.90% 314.74% 270.02% 252.31% Notes to Schedule:

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 o n 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, 2024

105
City S afety Plan
Total pension liability 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Service cost 4,803,289 $ 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 16,786,459 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 1,977,698 (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 124,164 - - - - - - - - - Benefit payments, including refunds of employee contributions (11,797,447) (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 11,894,163 13,719,407 10,224,951 8,599,607 10,436,715 11,029,012 17,499,295 5,002,988 1,819,738 7,291,003 Total pension liability - beginning 244,677,252 230,957,845 220,732,894 212,133,287 201,696,572 190,667,560 173,168,265 168,165,277 166,345,539 159,054,536 Total pension liability - ending (a) 256,571,415$ 244,677,252 $ 230,957,845 $ 220,732,894 $ 212,133,287 $ 201,696,572 $ 190,667,560 $ 173,168,265 $ 168,165,277 $ 166,345,539 $ Plan fiduciary net position
Contributions - employer 4,861,285 $ 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 1,770,960 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) 12,975,742 (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 (11,797,447) (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 1,212 - - - - (311) - 135 - - Administrative expenses (159,036) (110,482) (145,755) (198,201) (95,127) (567,286) (169,427) (71,013) (131,164) - Net change in plan fiduciary net position 7,652,716 38,916,705 31,444,682 5,317,923 6,854,113 8,161,882 10,822,028 (1,766,580) (54,448) 14,920,720 Plan fiduciary net position - beginning 216,271,614 177,354,909 145,910,227 140,592,304 133,738,191 125,576,309 114,754,281 116,520,861 116,575,309 101,654,589 Plan fiduciary net position - ending (b) 223,924,330$ 216,271,614 $ 177,354,909 $ 145,910,227 $ 140,592,304 $ 133,738,191 $ 125,576,309 $ 114,754,281 $ 116,520,861 $ 116,575,309 $ Net pension liability - ending (a )-(b) 32,647,085$ 28,405,638 $ 53,602,936 $ 74,822,667 $ 71,540,983 $ 67,958,381 $ 65,091,251 $ 58,413,984 $ 51,644,416 $ 49,770,230 $ Plan fiduciary net position as a percentage of the
total pension liability 87.28% 88.39% 76.79% 66.10% 66.28% 66.31% 65.86% 66.27% 69.29% 70.08% Covered payroll 14,958,858 $ 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 covered-
employee payroll 218.25% 198.69% 398.34% 551.10% 548.85% 526.86% 545.18% 523.53% 459.92% 455.90% Notes to Schedule:

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 report ed 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, 2024

106
Measurement Period 2023-24 2022-23 2021-22 2020- 21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contribution 1,755,191 $ 2,457,605 $ 4,487,300 $ 4,120,557 $ 3,888,994 $ 3,371,801 $ 2,953,694 $ 2,854,739 $ 2,367,548 $ 2,056,706 $ Contributions in relation to the actuarially determined contributions (1,755,191) (2,457,605) (31,300,395) (4,120,557) (3,888,994) (3,371,801) (2,953,694) (2,854,739) (2,367,548) (2,056,706) Contribution deficiency (excess) -$ - $ (26,813,095)$ - $ - $ - $ - $ - $ - $ - $ Covered payroll 2, 3 11,276,960$ 10,975,144 $ 11,215,102 $ 11,606,086 $ 11,276,333 $ 11,582,137 $ 11,885,467 $ 10,724,074 $ 10,126,926 $ 9,742,081 $ Contributions as a percentage of covered
payroll 3 15.56% 22.39% 279.09% 35.50% 34.49% 29.11% 24.85% 26.62% 23.38% 21.11% 3 Payroll from prior year, $10,975,144, was assumed to increase by the 2.75% payroll growth assumption.

Notes to Schedule
Valuation date: 6/30/2022 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 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 2021 CalPERS Experience study.

Morta l i ty
City Miscellaneous Plan - 172
1 E m ployers are assum ed to m ake contributions equal to the actuarially determ ined contributions. However, som e em ployers m ay choose to m ake addition al contributions towards their unfunded liability. Em ployer contributions for such plans ex ceed the actuarially determined contributions. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, G ASB 68 defines covered-employee payroll as t he total payroll of em ployees that are provided pensions through the pension plan.

Accordingly, if pensionable earnings are different than total earnings for covered-em ployees, the em ployer should display in the disclosure footn otes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

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 2021 CalPERS Experience Study. 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.

Measurement Period 2023-24 2022-23 2021-22 2020 -21 2019-20 2018-19 2017- 18 2016-17 2015-16 2014-15 Actuarially determined contribution 3,826,756 $ 4,861,285 $ 8,422,768 $ 7,849,867 $ 7,377,465 $ 6,484,462 $ 5,838,406 $ 5,748,626 $ 4,978,090 $ 4,463,726 $ Contributions in relation to the actuarially determined contributions (3,826,756) (4,861,285) (64,869,673) (7,849,867) (7,377,465) (6,484,462) (5,838,406) (5,748,626) (4,978,090) (4,463,726) Contribution deficiency (excess) -$ - $ (56,446,905)$ - $ - $ - $ - $ - $ - $ - $ Covered payroll 2, 3 15,370,227$ 14,958,858 $ 14,296,213 $ 13,456,702 $ 13,576,921 $ 13,034,797 $ 12,898,732 $ 11,939,450 $ 11,157,745 $ 11,228,972 $ Contributions as a percentage of covered
payroll 3 24.90% 32.50% 453.75% 58.33% 54.34% 49.75% 45.26% 48.15% 44.62% 39.75% Notes to Schedule
Valuation date: 6/30/2022 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 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 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 2021 CalPERS Experience study.

Mor ta l i ty
City Safety Plan - 4923
1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make addition al contributions towards their unfunded liability. Em ployer contributions for such plans ex ceed the actuarially determined contributions. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, G ASB 68 defines covered-employee payroll as t he 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 footn otes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.
3 Payroll from prior year, $14,958,858, was assumed to increase by the 2.75% payroll growth assumption.

The probabilities of mortality are based on the 2021 CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

City of National City
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Total OPEB Liability and Related Ratios Last Ten Fiscal Years 1
For the Year Ended June 30, 2024

107
M easurement period, year ending: 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPE B liab ility
Service cost 166,431 $ 163,178 $ 243,592 $ 215,583 $ 190,082 $ 201,904 $ 196,023 $ 189,577 $ Interest 200,253 196,473 134,422 153,536 169,175 187,984 177,753 170,970 Differences between expected and actual experience 166,264 (2,960) (283,064) (70,912) - (131,753) - - Changes of assumptions (79,598) (16,218) (1,070,116) 301,024 267,125 (25,433) (53,296) - Benefit payments, including refunds of member contributions (302,760) (294,801) (264,043) (258,237) (244,418) (198,069) (168,761) (166,220) Net change in total OPE B liability 150,590 45,672 (1,239,209) 340,994 381,964 34,633 151,719 194,327 Total OPE B liab ility - b eginning 4,832,170 4,786,498 6,025,707 5,684,713 5,302,749 5,268,116 5,116,397 4,922,070 Total OPEB liability - ending (a) 4,982,760$ 4,832,170 $ 4,786,498 $ 6,025,707 $ 5,684,713 $ 5,302,749 $ 5,268,116 $ 5,116,397 $ OPEB fiduciary net position
Contributions - employer 302,760 $ 294,801 $ 264,043 $ 258,237 $ 244,418 $ 198,069 $ 168,761 $ 166,220 $ Benefit payments, including refunds of member contributions (302,760) (294,801) (264,043) (258,237) (244,418) (198,069) (168,761) (166,220) 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) 4,982,760$ 4,832,170 $ 4,786,498 $ 6,025,707 $ 5,684,713 $ 5,302,749 $ 5,268,116 $ 5,116,397 $ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered-employee payroll 32,858,171$ 25,675,800 $ 24,976,459 $ 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 15.16% 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 p ay related benefits for the OPEB p lan.

108

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SUPPLEMENTARY INFORMATION
109Page 756 of 860
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BASIC FINANCIAL STATEMENTS
110Page 757 of 860

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.
111Page 758 of 860
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BASIC FINANCIAL STATEMENTS
112Page 759 of 860

NON-MAJOR

GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS:

Library Bonds Debt Service Fund - This fund is used to account for the property taxes collected for and debt service payments made on the bonds that were issued for construction of the library.

CAPITAL PROJECT FUNDS:

STP Local/TransNet Highway Fund - This fund is used to account for funds received from the San Diego Association of Governments (“SANDAG”) for TransNet projects.

Proposition “A ” Capital Projects Fund - This fund is used to account for funds received fro m the San Diego Association of Governments (“SANDAG”) for TransNet projects. Projects are funded by a one-half cent transactions and use tax a
pproved 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. 113Page 760 of 860
Library
Parks Capital
Library Maintenance Outlay Gas Tax CDBG
ASSETS
Cash and investments 536,953 $ 794,598 $ 1,134,639 $ 2,169,901 $ 4,190 $ Receivables:

Accounts - - - - - Taxes 7,595 8,850 7,421 273,627 - Interest - - - 12,969 - Loans - - - - 23,199 Due from other governments - - - - 60,925 Total assets 544,548$ 803,448 $ 1,142,060 $ 2,456,497 $ 88,314 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 6,358 $ 50,826 $ 1,831 $ 136,005 $ 11,231 $ Accrued liabilities 63,140 31,290 - 41,590 7,697 Due to other funds - - - - 22,428 Unearned revenue - - - - - Total liabilities 69,498 82,116 1,831 177,595 41,356 Fund Balances (deficit):

Restricted 475,050 721,332 1,140,229 2,278,902 46,958 Unassigned (deficit) - - - - - Total fund balances 475,050 721,332 1,140,229 2,278,902 46,958 Total liabilities and fund balances 544,548$ 803,448 $ 1,142,060 $ 2,456,497 $ 88,314 $ (Continued)
City of National City
Combining Balance Sheet
Special Revenue
Non-Major Governmental Funds
June 30, 2024
114Page 761 of 860
Debt Service Capital Projects
HOME Asset Library STP Local/
Program Forfeiture Nutrition Bonds TransNet
ASSETS
Cash and investments 823,782 $ 318,471 $ 79,746 $ 949,391 $ - $ Receivables:

Accounts - - 97,686 - - Taxes - - - 1,067 - Interest 4,133 1,615 - 4,753 - Loans 308,601 - - - - Due from other governments - - - - - Total assets 1,136,516$ 320,086 $ 177,432 $ 955,211 $ - $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 98,868 $ - $ 36,983$ - $ - $ Accrued liabilities 3,009 - 76,953 - - Due to other funds - - - - - Unearned revenue 1,088 - - - - Total liabilities 102,965 - 113,936 - - Fund Balances (deficit):

Restricted 1,033,551 320,086 63,496 955,211 - Unassigned (deficit) - - - - - Total fund balances 1,033,551 320,086 63,496 955,211 - Total liabilities and fund balances 1,136,516$ 320,086 $ 177,432 $ 955,211 $ - $ (Continued)
City of National City
Combining Balance Sheet (Continued)
June 30, 2024
Non-Major Governmental Funds
Special Revenue
115Page 762 of 860
Permanent
Total
Non-major
State-Local Library Governmental
Proposition A Partnership Endowment Funds
ASSETS
Cash and investments - $ 138,766$ 56,006 $ 7,006,443 $ Receivables:

Accounts - - - 97,686 Taxes - - - 298,560 Interest - 694 280 24,444 Loans - - - 331,800 Due from other governments - - - 60,925 Total assets -$ 139,460$ 56,286 $ 7,819,858 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 62,309 $ - $ - $ 404,411$ Accrued liabilities - - - 223,679 Due to other funds 1,776,299 - - 1,798,727 Unearned revenue - - - 1,088 Total liabilities 1,838,608 - - 2,427,905 Fund Balances (deficit):

Restricted - 139,460 56,286 7,230,561 Unassigned (deficit) (1,838,608) - - (1,838,608) Total fund balances (1,838,608) 139,460 56,286 5,391,953 Total liabilities and fund balances -$ 139,460$ 56,286 $ 7,819,858 $ (Concluded)
Capital Projects
City of National City
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2024
116Page 763 of 860
Library
Parks Capital
Library Maintenance Outlay Gas Tax CDBG
REVENUES:

Taxes 1,006,130 $ 1,172,398 $ 128,554 $ 3,124,084 $ - $ Fines and forfeitures - - 13,120 - - Use of money and property - - - 74,798 - Intergovernmental 4,346 5,064 - - 718,540 Charges for services - - - - - Other revenues - 25 - - - Total revenues 1,010,476 1,177,487 141,674 3,198,882 718,540 EXPENDITURES:

Current:

Public safety - - - - - Transportation - - - 1,239,927 - Community development - - - - 105,070 Culture and leisure 2,337,482 1,709,995 29,471 - - Capital outlay - - - 851,659 - Debt service:

Principal - - - - 589,609 Interest and fiscal charges - - - - 8,470 Total ex
penditures 2,337,482 1,709,995 29,471 2,091,586 703,149

REVENUES OVER
(UNDER) EXPENDITURES (1,327,006) (532,508) 112,203 1,107,296 15,391 OTHER FINANCING SOURCES:

Transfers in 1,333,616 1,060,499 - - - Transfers out (72,019) (102,510) - - - Total other financing sources 1,261,597 957,989 - - - CHANGES IN FUND BALANCES (65,409) 425,481 112,203 1,107,296 15,391 FUND BALANCES (DEFICIT):

Beginning of year 540,459 295,851 1,028,026 1,171,606 31,567 End of year 475,050$ 721,332 $ 1,140,229 $ 2,278,902 $ 46,958 $ (Continued)
Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances City of National City
For the Year Ended June 30, 2024
Non-Major Governmental Funds
117Page 764 of 860
Debt Service Capital Projects
HOME Asset Library STP Local/
Program Forfeiture Nutrition Bonds TransNet
REVENUES:

Taxes - $ - $ - $ 368,853$ - $ Fines and forfeitures - 105,580 - - - Use of money and property 65,791 9,469 - 36,168 - Intergovernmental 36,514 - 599,964 - - Charges for services - - 50,109 - - Other revenues - 2,284 8,207 - - Total revenues 102,305 117,333 658,280 405,021 - EXPENDITURES:

Current:

Public safety - 5,693 - - - Transportation - - - - 13 Community development 504,807 - - - - Culture and leisure - - 1,202,395 - - Capital outlay - - - - - Debt service:

Principal - - - 330,000 - Interest and fiscal charges - - - 67,533 - Total ex
penditures 504,807 5,693 1,202,395 397,533 13

REVENUES OVER
(UNDER) EXPENDITURES (402,502) 111,640 (544,115) 7,488 (13) OTHER FINANCING SOURCES:

Transfers in - - 792,051 - - Transfers out - - (247,387) - - Total other financing sources - - 544,664 - - CHANGES IN FUND BALANCES (402,502) 111,640 549 7,488 (13) FUND BALANCES (DEFICIT):

Beginning of year 1,436,053 208,446 62,947 947,723 13 End of year 1,033,551$ 320,086 $ 63,496 $ 955,211 $ - $ (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, 2024
118Page 765 of 860
Permanent
Total
Non-Major
State-Local Library Governmental
Proposition A Partnership Endowment Funds
REVENUES:

Taxes -$ - $ - $ 5,800,019$ Fines and forfeitures - - - 118,700 Use of money and property - 5,801 2,340 194,367 Intergovernmental - - - 1,364,428 Charges for services - - - 50,109 Other revenues - - - 10,516 Total revenues - 5,801 2,340 7,538,139 EXPENDITURES:

Current:

Public safety - - - 5,693 Transportation - - - 1,239,940 Community development - - - 609,877 Culture and leisure - - - 5,279,343 Capital outlay 962,903 - - 1,814,562 Debt service:

Principal - - - 919,609 Interest and fiscal charges - - - 76,003 Total ex
penditures 962,903 - - 9,945,027

REVENUES OVER
(UNDER) EXPENDITURES (962,903) 5,801 2,340 (2,406,888) OTHER FINANCING SOURCES:

Transfers in - - - 3,186,166 Transfers out - - - (421,916) Total other financing sources - - - 2,764,250 CHANGES IN FUND BALANCES (962,903) 5,801 2,340 357,362 FUND BALANCES (DEFICIT):

Beginning of year (875,705) 133,659 53,946 5,034,591 End of year (1,838,608)$ 139,460 $ 56,286 $ 5,391,953 $ (Concluded)
For the Year Ended June 30, 2024
City of National City
Capital Projects
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
119Page 766 of 860
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 1,002,176 $ 1,002,176 $ 1,006,130 $ 3,954 $ Intergovernmental 4,410 4,410 4,346 (64) Total revenue
s 1,006,586 1,006,586 1,010,476 3,890 EXPENDITURES:

Current:

Culture and leisure 2,358,040 2,358,040 2,337,482 20,558 Total expenditures 2,358,040 2,358,040 2,337,482 20,558

REVENUES OVER
(UNDER) EXPENDITURES (1,351,454) (1,351,454) (1,327,006) 24,448 OTHER FINANCING SOURCES:

Transfers in - - 1,333,616 1,333,616 Transfers out - - (72,019) (72,019) Total other financing sources - - 1,261,597 1,261,597 CHANGE IN FUND BALANCE (1,351,454)$ (1,351,454) $ (65,409) 1,286,045 $ FUND BALANCE:

Beginning of year 540,459
End of year 475,050$
For the Year Ended June 30, 2024
Library Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
120Page 767 of 860
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 1,167,036 $ 1,167,036 $ 1,172,398 $ 5,362 $ Intergovernmental 5,145 5,145 5,064 (81) Other revenues - - 25 25 Total revenue
s 1,172,181 1,172,181 1,177,487 5,306 EXPENDITURES:

Culture and leisure 2,232,782 2,232,782 1,709,995 522,787 Total expenditures 2,232,782 2,232,782 1,709,995 522,787

REVENUES OVER
(UNDER) EXPENDITURES (1,060,601) (1,060,601) (532,508) 528,093 OTHER FINANCING SOURCES:

Transfers in - - 1,060,499 1,060,499 Transfers out - - (102,510) (102,510) Total other financing sources - - 957,989 957,989 CHANGE IN FUND BALANCE (1,060,601)$ (1,060,601) $ 425,481 1,486,082 $ FUND BALANCE:

Beginning of year 295,851
End of year 721,332$
For the Year Ended June 30, 2024
Parks Maintenance Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
121Page 768 of 860
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 170,000 $ 170,000 $ 128,554 $ (41,446) $ Fines and Forfeitures 10,000 10,000 13,120 3,120 Total revenues 180,000 180,000 141,674 (38,326) EXPENDITURES:

Current:

Culture and leisure 48,900 48,900 29,471 19,429 Capital outlay 5,000 28,354 - 28,354 Total expenditures 53,900 77,254 29,471 47,783

REVENUES OVER
(UNDER) EXPENDITURES 126,100 102,746 112,203 9,457 CHANGE IN FUND BALANCE 126,100$ 102,746 $ 112,203 9,457 $ FUND BALANCE:

Beginning of year 1,028,026
End of year 1,140,229$
For the Year Ended June 30, 2024
Library Capital Outlay Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
122Page 769 of 860
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 3,286,920 $ 3,286,920 $ 3,124,084 $ (162,836) $ Use of money and property - - 74,798 74,798 Total revenue
s 3,286,920 3,286,920 3,198,882 (88,038) EXPENDITURES:

Current:

Transportation 1,314,272 1,314,272 1,239,927 74,345 Capital outlay 1,519,578 3,146,409 851,659 2,294,750 Total expenditures 2,833,850 4,460,681 2,091,586 2,369,095 CHANGE IN FUND BALANCE 453,070$ (1,173,761) $ 1,107,296 2,281,057 $ FUND BALANCE:

Beginning of year 1,171,606
End of year 2,278,902$
For the Year Ended June 30, 2024
Gas Tax Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
123Page 770 of 860
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 715,046 $ 715,046 $ 718,540 $ 3,494 $ Total revenue
s 715,046 715,046 718,540 3,494 EXPENDITURES:

Current:

Community development 126,184 105,070 105,070 - Debt service:

Principal 605,000 605,000 589,609 15,391 Interest and fiscal charges 23,861 8,470 8,470 - Total expenditures 755,045 718,540 703,149 15,391 CHANGE IN FUND BALANCE (39,999)$ (3,494) $ 15,391 18,885 $ FUND BALANCE (DEFICIT):

Beginning of year 31,567
End of year 46,958$
For the Year Ended June 30, 2024
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
124Page 771 of 860
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 65,791$ 65,791 $ Intergovernmental 400,681 400,681 36,514 (364,167) Total revenue
s 400,681 400,681 102,305 (298,376) EXPENDITURES:

Current:

Community development 226,761 856,495 504,807 351,688 Total expenditures 226,761 856,495 504,807 351,688 CHANGE IN FUND BALANCE 173,920$ (455,814) $ (402,502) 53,312 $ FUND BALANCE:

Beginning of year 1,436,053
End of year 1,033,551$
For the Year Ended June 30, 2024
HOME Program Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
125Page 772 of 860
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Fines and forfeitures - $ - $ 105,580$ 105,580 $ Use of money and property 1,500 1,500 9,469 7,969 Other revenues - - 2,284 2,284 Total revenues 1,500 1,500 117,333 115,833 EXPENDITURES:

Current:

Public safety 17,500 23,688 5,693 17,995 Capital outlay 50,000 50,000 - (50,000) Total expenditures 67,500 73,688 5,693 67,995 CHANGE IN FUND BALANCE (66,000)$ (72,188) $ 111,640 183,828 $ FUND BALANCE:

Beginning of year 208,446
End of year 320,086$
For the Year Ended June 30, 2024
Asset Forfeiture Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
126Page 773 of 860
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 341,000 $ 546,905 $ 599,964 $ 53,059 $ Charges for services - - 50,109 50,109 Other revenues 72,600 72,600 8,207 (64,393) Total revenue
s 413,600 619,505 658,280 38,775 EXPENDITURES:

Current:

Culture and leisure 1,138,501 1,449,176 1,202,395 246,781 Total expenditures 1,138,501 1,449,176 1,202,395 246,781

REVENUES OVER
(UNDER) EXPENDITURES (724,901) (829,671) (544,115) 285,556 OTHER FINANCING SOURCES:

Transfers in - - 792,051 792,051 Transfers out (48,000) (216,730) (247,387) (30,657) Total other financing sources (48,000) (216,730) 544,664 761,394 CHANGE IN FUND BALANCE (772,901)$ (1,046,401) $ 549 1,046,950$ FUND BALANCE:

Beginning of year 62,947
End of year 63,496$
For the Year Ended June 30, 2024
Nutrition Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
127Page 774 of 860
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 399,605 $ 399,605 $ 368,853 $ (30,752) $ Use of money and property - - 36,168 36,168 Total revenue
s 399,605 399,605 405,021 5,416 EXPENDITURES:

Debt Service:

Principal 330,000 330,000 330,000 - Interest and fiscal charges 67,605 67,605 67,533 72 Total expenditures 399,605 399,605 397,533 2,072 CHANGE IN FUND BALANCE -$ - $ 7,488 7,488 $ FUND BALANCE:

Beginning of year 947,723
End of year 955,211$
For the Year Ended June 30, 2024
Library Bonds Debt Service Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City of National City
Budgeted Amounts
128Page 775 of 860

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.
129Page 776 of 860
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
ASSETS
Current assets:

Cash and investments 108,944 $ 17,329,014 $ 1,921,351 $ 573,214 $ Accounts receivable - 60,318 - - Prepaid items and deposits 43,101 - 37,520 - Total current assets 152,045 17,389,332 1,958,871 573,214 Noncurrent assets:

Restricted cash and investments with fiscal agents 10,334 - - - Capital assets, net 293,236 - 107,789 26,189 Total noncurrent assets 303,570 - 107,789 26,189 Total assets 455,615 17,389,332 2,066,660 599,403

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 160,241 189,597 271,002 249 Salaries payable - 2,037 14,332 - Interest payable 2,069 - - - Leases payable - due within one year 167,670 - - - Compensated absences - due within one year 50,726 6,569 47,285 - Claims payable - due within one year - 2,541,967 - - Total current liabilities 380,706 2,740,170 332,619 249 Noncurrent liabilities:

Claims payable - due within one year - 10,391,033 - - Total noncurrent liabilities - 10,391,033 - - Total liabilities 380,706 13,131,203 332,619 249

NET POSITION
Net investment in capital assets 125,566 - 107,789 26,189 Restricted for debt service 10,334 - - - Unrestricted (deficit) (60,991) 4,258,129 1,626,252 572,965 Total net position 74,909$ 4,258,129 $ 1,734,041 $ 599,154 $ June 30, 2024
All Internal Service Funds
Combining Statement of Net Position
City of National City
130Page 777 of 860
Tele- Motor Vehicle
communications Vehicle Replacement
Revolving Services Reserve Total
ASSETS
Current assets:

Cash and investments 14,623 $ 1,378,540 $ 4,849,831 $ 26,175,517 $ Accounts receivable - - - 60,318 Prepaid items and deposits - - - 80,621 Total current assets 14,623 1,378,540 4,849,831 26,316,456 Noncurrent assets:

Restricted cash and investments with fiscal agents - - - 10,334 Capital assets, net - - 5,130,140 5,557,354 Total noncurrent assets - - 5,130,140 5,567,688 Total assets 14,623 1,378,540 9,979,971 31,884,144

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities - 48,054 79,085 748,228 Salaries payable - 7,832 - 24,201 Interest payable - - - 2,069 Leases payable - due within one year - - - 167,670 Compensated absences - due within one year - 57,148 - 161,728 Claims payable - due within one year - - - 2,541,967 Total current liabilities - 113,034 79,085 3,645,863 Noncurrent liabilities:

Claims payable - due within one year - - - 10,391,033 Total noncurrent liabilities - - - 10,391,033 Total liabilities - 113,034 79,085 14,036,896

NET POSITION
Net investment in capital assets - - 5,130,140 5,389,684 Restricted for debt service - - - 10,334 Unrestricted (deficit) 14,623 1,265,506 4,770,746 12,447,230 Total net position 14,623$ 1,265,506 $ 9,900,886 $ 17,847,248 $ City of National City
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2024
131Page 778 of 860
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
OPERATING REVENUES:

Charges for services 3,252,619 $ 4,420,955 $ 3,143,086 $ - $ Other 558 - 32 - Total o
perating revenues 3,253,177 4,420,955 3,143,118 - OPERATING EXPENSES:

Operations and administration 953,586 5,759,795 721,288 11,098 Maintenance 2,045,831 74,421 2,028,494 - Depreciation and amortization 150,751 - 72,477 7,132 Total operating expenses 3,150,168 5,834,216 2,822,259 18,230 Operating income (loss) 103,009 (1,413,261) 320,859 (18,230) NONOPERATING REVENUES (EXPENSES):

Interest expense (9,386) - - - Total nonoperating revenues (expenses) (9,386) - - - Income (loss) before transfers 93,623 (1,413,261) 320,859 (18,230) TRANSFERS:

Transfers in 48,000 - - - Transfers out (66,789) (5,927) (46,034) - Total transfers (18,789) (5,927) (46,034) - Changes in net position 74,834 (1,419,188) 274,825 (18,230) NET POSITION:

Beginning of year 75 5,677,317 1,459,216 617,384 End of year 74,909$ 4,258,129 $ 1,734,041 $ 599,154 $ For the Year Ended June 30, 2024
All Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position City of National City
132Page 779 of 860
Tele- Motor Vehicle
communications Vehicle Replacement
Revolving Services Reserve Total
OPERATING REVENUES:

Charges for services - $ 1,614,405$ 1,731,754 $ 14,162,819 $ Other - 81,459 - 82,049 Total o
perating revenues - 1,695,864 1,731,754 14,244,868 OPERATING EXPENSES:

Operations and administration - 337,424 394,915 8,178,106 Maintenance - 863,697 26,562 5,039,005 Depreciation and amortization - - 1,007,519 1,237,879 Total operating expenses - 1,201,121 1,428,996 14,454,990 Operating income (loss) - 494,743 302,758 (210,122) NONOPERATING REVENUES (EXPENSES):

Interest expense - - - (9,386) Total nonoperating revenues (expenses) - - - (9,386) Income (loss) before transfers - 494,743 302,758 (219,508) TRANSFERS:

Transfers in - - 605,486 653,486 Transfers out - (38,534) - (157,284) Total transfers - (38,534) 605,486 496,202 Changes in net position - 456,209 908,244 276,694 NET POSITION:

Beginning of year 14,623 809,297 8,992,642 17,570,554 End of year 14,623$ 1,265,506 $ 9,900,886 $ 17,847,248 $ 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, 2024
133Page 780 of 860
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from other funds 3,252,619 $ 4,422,202 $ 3,143,086 $ - $ Cash payments for goods and services (3,028,816) (4,249,721) (2,691,595) (11,783) Other operating revenues 558 - 32 - Net cash
provided by (used in)
operating activities 224,361 172,481 451,523 (11,783)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Principal paid on capital lease (158,702) - - - Acquisition of capital assets - - (149,947) 1 Interest paid (13,233) - - - Net cash (used in) capital and
related financing activities (171,935) - (149,947) 1

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers in 48,000 - - - Transfers (out) (66,789) (5,927) (46,034) - Net cash provided by (used in) noncapital
financing activities (18,789) (5,927) (46,034) - Net change in cash and cash equivalents 33,637 166,554 255,542 (11,782) CASH AND CASH EQUIVALENTS:

Beginning of year 85,641 17,162,460 1,665,809 584,996 End of year 119,278$ 17,329,014 $ 1,921,351 $ 573,214 $

RECONCILIATION TO STATEMENT OF
NET POSITION:

Cash and investments 108,944 $ 17,329,014 $ 1,921,351 $ 573,214 $ Restricted cash and investments with fiscal agents 10,334 - - - Total cash and cash equivalents 119,278$ 17,329,014 $ 1,921,351 $ 573,214 $ For the Year Ended June 30, 2024
All Internal Service Funds
Combining Statement of Cash Flows
City of National City
134Page 781 of 860
Tele- Motor Vehicle
communications Vehicle Replacement
Revolving Services Reserve Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from other funds - $ 1,614,405$ 1,731,754 $ 14,164,066 $ Cash payments for goods and services - (1,215,561) (742,940) (11,940,416) Other operating revenues - 81,459 - 82,049 Net cash
provided by (used in)
operating activities - 480,303 988,814 2,305,699

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Principal paid on capital lease - - - (158,702) Acquisition of capital assets - - (2,252,045) (2,401,991) Interest paid - - - (13,233) Net cash (used in) capital and
related financing activities - - (2,252,045) (2,573,926)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers in - - 605,487 653,487 Transfers (out) - (38,534) - (157,284) Net cash provided by (used in) noncapital
financing activities - (38,534) 605,487 496,203 Net change in cash and cash equivalents - 441,769 (657,744) 227,976 CASH AND CASH EQUIVALENTS:

Beginning of year 14,623 936,771 5,507,575 25,957,875 End of year 14,623$ 1,378,540 $ 4,849,831 $ 26,185,851 $

RECONCILIATION TO STATEMENT OF
NET POSITION:

Cash and investments 14,623 $ 1,378,540 $ 4,849,831 $ 26,175,517 $ Restricted cash and investments with fiscal agents - - - 10,334 Total cash and cash equivalents 14,623$ 1,378,540 $ 4,849,831 $ 26,185,851 $ City of National City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2024
135Page 782 of 860
Information Office
Facilities Liability Systems Equipment
Maintenance Insurance Maintenance Depreciation

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:

Operating income (loss) 103,009 $ (1,413,261) $ 320,859 $ (18,230) $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation and amortization 150,751 - 72,477 7,132 Changes in operating assets and liabilities:

Accounts receivable - 1,247 - - Accounts payable and accrued liabilities (28,154) (57,703) 49,247 (685) Salaries payable (8,870) 763 4,295 - Compensated absences 7,625 435 4,645 - Claims payable - 1,641,000 - - Total adjustments 121,352 1,585,742 130,664 6,447 Net cash
provided by (used in)
operating activities 224,361$ 172,481 $ 451,523 $ (11,783) $ For the Year Ended June 30, 2024
City of National City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
136Page 783 of 860
Tele- Motor Equipment
communications Vehicle Replacement
Revolving Services Reserve Total

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:

Operating income (loss) - $ 494,743$ 302,758 $ (210,122) $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation and amortization - - 1,007,519 1,237,879 Changes in operating assets and liabilities:

Accounts receivable - - - 1,247 Accounts payable and accrued liabilities - (27,998) (321,463) (386,756) Salaries payable - 5,987 - 2,175 Compensated absences - 7,571 - 20,276 Claims payable - - - 1,641,000 Total adjustments - (14,440) 686,056 2,515,821 Net cash
provided by (used in)
operating activities -$ 480,303$ 988,814 $ 2,305,699 $ For the Year Ended June 30, 2024
City of National City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
137Page 784 of 860
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BASIC FINANCIAL STATEMENTS
138Page 785 of 860

STATISTICAL SECTION
139Page 786 of 860
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140Page 787 of 860

CITY OF NATIONAL CITY, CALIFORNIA

STATISTICAL SECTION
JUNE 30, 2024
Financial Trends Page
Net Position by Component 142
Changes in Net Position 144
Fund Balances of Governmental Funds 148
Changes in Fund Balances of Government Funds 150
Revenue Capacity
Assessed Value and Actual Value of Taxable Property 152 2023/24 Use Category Summary 154
Property Tax Dollar Breakdown 155
2023/24 Roll Summary Taxable Property Values 157
Taxable Sales by Category 158
Property Tax Levies and Collections 160
Direct and Overlapping Property Tax Rates 162
Principal Property Tax Payers 164
Sales Value History Single Family Residential Full Value Sales 165 Top 25 Sales Tax Producers 167
Debt Capacity
Ratios of Outstanding Debt by Type 168
Direct and Overlapping Debt 170
Net Taxable Assessed Value History 171
Legal Debt Margin Information 172
Pledged Revenue Coverage 174
Demographic and Economic Information
Demographic and Economic Statistics 177
Operating Information
Full-time Equivalent City Government Employees by Function/Program 178 Operating Indicators by Function/Program 180
Capital Asset Statistics by Function/Program 182
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 an d demographic indicators to help readers understan d the environment within which the City's financial activities take place. 141Page 788 of 860
2015 2016 2017 2018 2019
Governmental Activities:

Net Investment in
Capital Assets 120,377,947$ 134,444,245$ 140,128,868$ 141,748,074$ 147,820,375$ Restricted for:

General Services 24,671,923 29,511,338 17,830,592 16,441,482 17,345,785 Community Development 5,348,413 3,448,959 1,413,792 283,394 169,573 Public Safety - - 1,566,498 1,472,665 1,296,186 Transportation - - 2,279,981 1,985,811 1,157,623 Culture and Leisure/General Services - - - - - Housing - - 8,450,433 8,980,034 74,709,334 Debt Service 1,676,222 1,845,117 1,753,076 1,681,688 1,667,147 Capital projects 2,193,169 942,285 840,156 721,171 1,743,976 Investment in Section 115 trust - - - - 1,749,740 Unrestricted (deficit) (34,896,708) (26,157,042) (31,330,173) (33,783,858) (41,622,749) Total governmental activities net position 119,370,966$ 144,034,902$ 142,933,223$ 139,530,461$ 206,036,990$ Business-type Activities:

Net Investment in
Capital Assets 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 1,876,125 2,031,385 763,085 818,678 - Unrestricted 98,698 99,478 (13,016) 22,571 - Total business-type activities net position 6,901,233$ 7,035,973$ 7,168,293$ 7,359,669$ -$ Primary Government:

Net Investment in
Capital Assets 125,304,357$ 139,349,355$ 145,124,659$ 146,752,019$ 147,820,375$ Restricted 35,765,852 37,779,084 36,320,046 33,899,398 99,839,364 Unrestricted (34,798,010) (26,057,564) (31,343,189) (33,761,287) (41,622,749) Total primary government net position 126,272,199$ 151,070,875$ 150,101,516$ 146,890,130$ 206,036,990$ Business-type activities for the City ceased operations after fiscal year 2018.

Fiscal Year
City of National City
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Source: City of National City Annual Comprehensive Financial Reports or financial statements 142Page 789 of 860
2020 2021 2022 2023 2024
Governmental Activities:

Net Investment in
Capital Assets 155,530,504$ 161,450,929$ 161,453,603$ 170,589,264$ 180,196,910$ Restricted for:

General Services 20,040,951 20,231,609 23,905,988 25,656,844 27,775,884 Community Development 19,999 20,000 20,000 20,000 20,000 Public Safety 221,853 231,802 206,028 208,446 320,086 Transportation 13 1,245,013 13 13 - Culture and Leisure/General Services - - - - - Housing 75,199,504 75,139,133 63,427,755 66,552,724 65,602,772 Debt Service 1,630,317 1,025,150 962,877 958,924 964,910 Capital projects 2,039,987 2,336,049 2,775,920 3,035,942 4,615,513 Investment in Section 115 trust 1,749,740 10,813,351 9,526,733 9,936,427 10,761,807 Unrestricted (deficit) (48,893,956) (57,801,974) (41,476,853) (40,208,465) (42,490,000) Total governmental activities net position 207,538,912$ 214,691,062$ 220,802,064$ 236,750,119$ 247,767,882$ 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 155,530,504$ 162,111,040$ 161,453,603$ 170,589,264$ 180,196,910$ Restricted 100,902,364 111,040,107 100,825,314 106,369,320 110,060,972 Unrestricted (48,893,956) (57,801,974) (41,476,853) (40,208,465) (42,490,000) Total primary government net position 207,538,912$ 215,349,173$ 220,802,064$ 236,750,119$ 247,767,882$ Business-type activities for the City ceased operations after fiscal year 2018.

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 143Page 790 of 860
2015 2016 2017 2018 2019
Expenses:

Governmental Activities:

General government 6,299,372$ 6,237,858$ 7,379,307$ 15,307,497$ 14,474,787$ Public safety 31,522,488 31,293,361 34,007,632 39,597,743 41,216,052 Transportation 6,737,292 8,605,631 8,925,351 8,076,078 8,479,861 Community development 11,603,528 11,812,563 13,560,523 12,884,161 13,521,091 Health 7,416,697 7,499,719 8,102,830 7,467,338 8,160,870 Culture and leisure 6,349,578 7,188,896 8,129,529 8,521,220 7,686,697 Interest and fiscal charges 407,194 308,808 243,832 414,353 380,597 Depreciation expense (unallocated) - - - - - Total governmental activities expenses 70,336,149$ 72,946,836$ 80,349,004$ 92,268,390$ 93,919,955$ Business-type Activities:

Kimball Towers 1,251,377$ 1,160,095$ 1,166,521$ 1,187,232$ 945,180$ Morgan Towers 1,078,546 1,113,885 1,141,607 1,102,742 787,266 Total business-type activities expenses 2,329,923$ 2,273,980$ 2,308,128$ 2,289,974$ 1,732,446$ Total primary government expenses 72,666,072$ 75,220,816$ 82,657,132$ 94,558,364$ 95,652,401$ Program Revenue:

Government Activities:

Charges for services:

General government 3,101,468$ 5,081,812$ 2,697,690$ 2,543,350$ 1,811,719$ Public safety 3,807,824 2,681,493 2,704,952 3,393,625 2,911,464 Transportation 1,863,599 1,344,988 1,218,156 1,640,930 2,556,059 Community development 3,260,501 1,908,755
2,105,289 3,320,354 4,461,949
Health 9,522,136 8,363,190 8,819,322 8,624,774 8,551,905 Culture and leisure 353,740 306,675 631,597 676,015 477,370 Operating grants and contributions 12,508,517 13,295,661 15,280,776 14,306,662 14,908,491 Capital grants and contributions 11,399,349 7,299,398 3,878,546 6,414,610 4,201,520 Total governmental activities program revenue 45,817,134$ 40,281,972$ 37,336,328$ 40,920,320$ 39,880,477$ Business-type Activities:

Charges for services:

Kimball Towers 1,101,514$ 1,124,578$ 1,130,543$ 1,127,607$ 1,256,346$ Morgan Towers 1,260,181 1,266,441 1,289,180 1,329,610 1,017,766 Total business-type activities program revenue 2,361,695$ 2,391,019$ 2,419,723$ 2,457,217$ 2,274,112$ Total primary government program revenue 48,178,829$ 42,672,991$ 39,756,051$ 43,377,537$ 42,154,589$ Net Revenues (Expenses):

Governmental activities (24,519,015) (32,664,864) (43,012,676) (51,348,070) (54,039,478) Business-type activities 31,772 117,039 111,595 167,243 541,666 Total Net Revenues (Expenses) (24,487,243)$ (32,547,825)$ (42,901,081)$ (51,180,827)$ (53,497,812)$ Business-type activities for the City ceased operations after fiscal year 2018.

Fiscal Year
City of National City
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Source: City of National City Annual Comprehensive Financial Reports or financial statements 144Page 791 of 860
2020 2021 2022 2023 2024
Expenses:

Governmental Activities:

General government 13,745,988$ 10,868,545$ 20,793,460$ 12,467,497$ 15,511,130$ Public safety 45,669,420 46,808,349 38,710,643 50,093,848 49,930,158 Transportation 8,262,579 8,503,284 8,358,045 9,619,556 9,528,332 Community development 15,463,076 16,056,965 16,113,804 17,168,341 19,932,582 Health 8,229,336 8,167,924 7,726,217 9,301,026 9,004,358 Culture and leisure 7,617,459 8,795,715 8,428,049 9,651,503 9,920,765 Interest and fiscal charges 398,181 528,873 2,298,786 3,367,717 1,177,548 Depreciation expense (unallocated) - - - - - Total governmental activities expenses 99,386,039$ 99,729,655$ 102,429,004$ 111,669,488$ 115,004,873$ Business-type Activities:

Kimball Towers -$ -$ -$ -$ -$ Morgan Towers - - - - - Total business-type activities expenses -$ -$ -$ -$ -$ Total primary government expenses 99,386,039$ 99,729,655$ 102,429,004$ 111,669,488$ 115,004,873$ Program Revenue:

Government Activities:

Charges for services:

General government 1,633,484$ 2,035,702$ 6,476,152$ 14,084,900$ 2,814,908$ Public safety 4,588,977 3,833,783 3,455,987 3,577,172 3,774,597 Transportation 2,559,252 2,559,581 2,796,202 2,983,306 3,526,439 Community development 5,390,111 3,885,598
3,235,575 3,216,282 171,785
Health 11,046,138 10,557,839 11,814,786 13,905,625 12,572,073 Culture and leisure 613,722 484,207 577,948 320,066 358,516 Operating grants and contributions 16,658,135 17,685,441 18,456,671 18,456,518 29,396,626 Capital grants and contributions 4,465,126 6,109,734 3,514,394 7,090,261 218,889 Total governmental activities program revenue 46,954,945$ 47,151,885$ 50,327,715$ 63,634,130$ 52,833,833$ Business-type Activities:

Charges for services:

Kimball Towers -$ -$ -$ -$ -$ Morgan Towers - - - - - Total business-type activities program revenue -$ -$ -$ -$ -$ Total primary government program revenue 46,954,945$ 47,151,885$ 50,327,715$ 63,634,130$ 52,833,833$ Net Revenues (Expenses):

Governmental activities (52,431,094) (52,577,770) (52,101,289) (48,035,358) (62,171,040) Business-type activities - - - - - Total Net Revenues (Expenses) (52,431,094)$ (52,577,770)$ (52,101,289)$ (48,035,358)$ (62,171,040)$ Business-type activities for the City ceased operations after fiscal year 2018.

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 Comprehensive Financial Reports or financial statements 145Page 792 of 860
2015 2016 2017 2018 2019
General Revenue and Other Changes in Net Position:

Governmental Activities:

Taxes:

Property taxes 10,301,592$ 10,293,634$ 11,948,882$ 12,721,058$ 14,340,418$ Sales taxes 27,095,666 29,170,512 29,284,869 30,084,675 33,196,667 Franchise taxes 1,902,082 1,922,723 1,856,039 1,910,053 1,966,728 Transient occupancy taxes 1,383,793 1,611,788 1,597,957 1,660,800 1,774,843 Business license taxes 818,820 867,488 886,455 711,635 708,451 Investment earnings 304,655 553,184 361,077 836,038 2,297,242 Other miscellaneous revenues - 1,864 - 21,049 45,017 Transfer to Successor Agency - (826,577) - - - Special items1 - 13,734,184 - - - Total governmental activities 41,806,608$ 57,328,800$ 45,935,279$ 47,945,308$ 54,329,366$ Business-type Activities:

Investment earnings 2,579$ 3,678$ 5,621$ 9,390$ 10,038$ Other misc 14,869 14,023 15,464 14,743 11,378 Total business-type activities 17,448$ 17,701$ 21,085$ 24,133$ 21,416$ Total primary government 41,824,056$ 57,346,501$ 45,956,364$ 47,969,441$ 54,350,782$ Changes in Net Position:

Governmental activities 17,287,593 24,663,936 2,922,603 (3,402,762) 66,506,529 Business-type activities 49,220 134,740 132,320 191,376 (7,359,669) Total Primary Government 17,336,813$ 24,798,676$ 3,054,923$ (3,211,386)$ 59,146,860$ 1 Special item related to a transfer of assets from the Successor Agency to the City.

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 Comprehensive Financial Reports or financial statements 146Page 793 of 860
2020 2021 2022 2023 2024
General Revenue and Other Changes in Net Position:

Governmental Activities:

Taxes:

Property taxes 15,975,053$ 16,266,505$ 16,753,096$ 17,559,333$ 18,689,432$ Sales taxes 31,268,711 36,415,641 40,777,746 38,678,895 40,326,068 Franchise taxes 2,330,697 2,104,436 2,131,159 2,490,691 3,400,238 Transient occupancy taxes 1,522,714 1,600,549 1,862,718 2,488,614 2,042,380 Business license taxes 678,663 737,435 793,653 935,316 871,831 Investment earnings 2,344,528 2,339,978 (3,007,949) 1,358,614 7,782,297 Other miscellaneous revenues 65,010 156,976 97,010 194,882 276,557 Transfer to Successor Agency - - - - - Special items - - - - - Total governmental activities 54,185,376$ 59,621,520$ 59,407,433$ 63,706,345$ 73,388,803$ Business-type Activities:

Investment earnings -$ -$ -$ -$ -$ Other misc - - - - - Total business-type activities -$ -$ -$ -$ -$ Total primary government 54,185,376$ 59,621,520$ 59,407,433$ 63,706,345$ 73,388,803$ Changes in Net Position:

Governmental activities 1,501,832 7,043,751 7,383,212 15,670,987 11,217,763 Business-type activities - - - - - Total Primary Government 1,501,832$ 7,043,751 $ 7,383,212$ 15,670,987$ 11,217,763$ 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 Comprehensive Financial Reports or financial statements 147Page 794 of 860
2015 2016 2017 2018 2019
General Fund:

Nonspendable 4,963,916$ 10,766,098$ 9,963,816$ 9,966,729$ 5,010,267$ Restricted 590,998 754,913 616,253 555,168 2,304,908 Committed 9,085,066 11,585,066 11,585,066 11,085,066 15,150,517 Assigned 16,065,736 14,792,381 14,325,683 15,772,642 12,865,120 Unassigned 10,266,365 12,166,732 11,903,272 12,731,293 13,673,543 Total General Fund 40,972,081$ 50,065,190$ 48,394,090$ 50,110,898$ 49,004,355$ All Other Governmental Funds:

Nonspendable 7,927,027 $ -$ 1,636,570$ 129,469$ 25,805$ Restricted 31,005,844 36,333,305 32,015,860 30,928,607 97,534,456 Committed - - - - - Assigned 706,558 - - - - Unassigned (deficit) (5,368,938) (821,959) (985,588) (1,910,674) (21,761) Total all other governmental funds 34,270,491$ 35,511,346$ 32,666,842$ 29,147,402$ 97,538,500$ Fiscal Year
City of National City
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 148Page 795 of 860
2020 2021 2022 2023 2024
General Fund:

Nonspendable 3,926,499$ 3,964,435$ 3,966,629$ 4,094,518$ 4,085,866$ Restricted 2,304,908 10,833,351 9,546,733 9,956,427 10,781,807 Committed 15,150,517 14,945,000 15,680,000 15,680,000 15,680,000 Assigned 12,865,120 7,193,969 8,400,718 9,604,056 10,697,013 Unassigned 14,433,312 13,956,296 19,392,455 23,040,220 26,654,907 Total General Fund 48,680,356$ 50,893,051$ 56,986,535$ 62,375,221$ 67,899,593$ All Other Governmental Funds:

Nonspendable - $ 1,270,805$ 1,270,805$ 25,805$ 25,805$ Restricted 98,597,366 98,961,756 91,278,581 97,320,165 101,164,731 Committed - - - - - Assigned - - - - - Unassigned (deficit) (45,744) (747,514) (210,125) (875,705) (1,838,608) Total all other governmental funds 98,551,622$ 99,485,047$ 92,339,261$ 96,470,265$ 99,351,928$ Fiscal Year
City of National City
Fund Balances of Government Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: City of National City Annual Comprehensive Financial Reports or financial statements 149Page 796 of 860
2015 2016 2017 2018 2019
Revenues:

Taxes 43,573,589$ 45,474,959$ 47,058,901$ 48,968,671$ 53,534,414$ Licenses and permits 1,567,617 1,122,139 1,280,675 1,879,379 1,527,378 Fines and forfeitures 885,722 646,370 642,972 663,205 3,006,250 Interest and rents - - - - - Use of money and property 1,073,543 1,417,606 1,035,112 1,393,733 3,125,731 Intergovernmental 26,791,254 21,381,584 20,051,795 22,671,850 20,790,012 Charges for services 10,024,879 10,734,789 11,721,905 11,010,813 10,630,010 Other revenues 4,387,660 3,925,718 2,552,556 2,675,725 1,045,184 Total revenues 88,304,264$ 84,703,165$ 84,343,916$ 89,263,376$ 93,658,979$ Expenditures:

Current:

General government 5,403,805$ 6,986,812$ 5,673,456$ 8,755,798$ 10,353,580$ Public safety 29,100,717 31,785,904 34,754,008 37,535,638 37,352,792 Transportation 3,941,747 4,546,976 4,687,611 4,731,634 5,068,343 Community development 11,173,792 11,752,502 12,909,844 16,801,816 13,557,554 Health 7,179,865 7,587,801 8,227,149 7,544,106 8,158,082 Culture and leisure 5,306,518 6,239,067 7,351,974 4,186,345 7,066,530 Capital outlay 17,176,753 16,737,745 12,938,379 14,560,697 9,059,110 Debt service:

Principal 1,142,186 1,150,824 1,310,893 1,552,162 1,060,732 Interest and fiscal charges 427,209 364,723 243,329 387,857 385,960 Total expenditures 80,852,592$ 87,152,354$ 88,096,643$ 96,056,053$ 92,062,683$ Excess (deficiency) of revenues
over (under) expenditures 7,451,672 (2,449,189) (3,752,727) (6,792,677) 1,596,296 Other Financing Sources (uses)
Issuance of long-term debt 554,604$ -$ -$ 5,523,602$ -$ Proceeds from sale of property - - 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 1,765,336 4,903,988 2,932,166 6,913,968 73,514,649 Transfers out (4,277,182) (3,078,442) (3,114,366) (7,447,525) (7,826,390) Transfers to Successor Agency - (826,577) - - - Total other financing sources (uses) (1,957,242)$ 998,969$ (762,875)$ 4,990,045$ 65,688,259$ Extraordinary/Special Items - 11,784,182 - - - Net change in fund balances 5,494,430$ 10,333,962$ (4,515,602)$ (1,802,632)$ 67,284,555$ Debt services as a percentage of
noncapital expenditures 2.46% 2.15% 2.07% 2.38% 1.74%
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 150Page 797 of 860
2020 2021 2022 2023 2024
Revenues:

Taxes 53,675,932$ 59,011,168$ 63,926,579$ 65,411,402$ 68,455,177$ Licenses and permits 2,730,712 1,118,924 1,565,077 1,544,101 1,384,884 Fines and forfeitures 3,008,937 520,640 1,199,213 875,020 775,024 Interest and rents - - - - - Use of money and property 3,623,029 3,628,887 129,417 3,846,605 9,128,595 Intergovernmental 22,985,841 26,719,202 27,831,520 30,500,077 30,100,955 Charges for services 12,927,695 13,650,614 14,870,478 22,772,165 15,760,828 Other revenues 2,241,100 1,417,104 1,002,913 2,374,206 680,958 Total revenues 101,193,246$ 106,066,539$ 110,525,197$ 127,323,576$ 126,286,421$ Expenditures:

Current:

General government 10,719,672$ 11,352,261$ 38,261,566$ 11,613,971$ 10,179,457$ Public safety 39,308,683 42,319,159 98,713,134 44,864,093 42,294,843 Transportation 4,746,320 5,050,345 4,933,856 6,092,746 6,098,178 Community development 14,192,654 16,081,378 16,107,479 17,158,360 19,875,396 Health 8,168,245 8,227,352 7,874,798 9,302,728 8,902,858 Culture and leisure 7,029,297 8,216,927 7,880,999 8,997,200 9,280,024 Capital outlay 13,561,929 9,245,317 18,407,406 11,868,336 13,421,930 Debt service:

Principal 1,077,616 1,066,163 1,128,518 3,769,474 4,931,273 Interest and fiscal charges 419,868 534,570 539,829 3,735,753 2,400,225 Total expenditures 99,224,284$ 102,093,472$ 193,847,585$ 117,402,661$ 117,384,184$ Excess (deficiency) of revenues
over (under) expenditures 1,968,962 3,973,067 (83,322,388) 9,920,915 8,902,237 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 2,045,690 2,623,099 2,529,757 5,117,844 11,395,704 Transfers out (2,050,691) (3,336,851) (3,440,586) (5,596,137) (11,891,906) Transfers to Successor Agency - - - - - Total other financing sources (uses) (1,225,986)$ (709,862)$ 82,347,154$ (478,293)$ (496,202)$ Extraordinary/Special Items - - - - - Net change in fund balances 742,976$ 3,263,205$ (975,234)$ 9,442,622$ 8,406,035$ Debt services as a percentage of
noncapital expenditures 1.75% 1.72% 0.95% 7.11% 7.05%
Fiscal Year
City of National City
Changes in Fund Balances of Government Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: City of National City Annual Comprehensive Financial Reports or financial statements 151Page 798 of 860
Category 2015 2016 2017 2018 2019
Secured:

Residential Property 1,670,508,837$ 1,722,404,004$ 1,810,705,276$ 2,017,179,182$ 2,124,245,312$ Commercial Property 987,481,069 1,022,202,892 1,077,685,426 1,137,254,070 1,172,975,597 Industrial Property 240,702,935 247,911,743 252,838,086 265,989,346 270,516,787 Institutional Property 46,214,366 47,543,893 48,174,758 50,168,242 50,062,854 Recreational Property 5,582,429 5,581,148 5,616,209 6,784,336 6,101,435 Vacant Land 50,717,021 57,154,411 57,213,441 58,262,852 60,732,808 Total Secured 3,001,206,657 3,102,798,091 3,252,233,196 3,535,638,028 3,684,634,793 Unsecured 197,869,900 208,192,396 200,687,180 209,840,073 228,175,189 Cross Reference 150,539,109 125,551,994 131,029,297 128,262,639 139,962,282 SBE Nonunitary 5,224,473 4,088,740 4,088,640 4,088,640 4,429,496 Total Taxable Assessed Value 3,354,840,139$ 3,440,631,221$ 3,588,038,313$ 3,877,829,380$ 4,057,201,760$ Total Direct Tax Rate 0.019774 0.020008 0.19685 0.19587 0.19462 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 152Page 799 of 860
Category 2020 2021 2022 2023 2024
Secured:

Residential Property 2,260,439,094$ 2,451,101,924$ 2,608,851,946$ 2,798,528,116$ 2,973,323,374$ Commercial Property 1,235,674,912 1,285,966,353 1,274,713,181 1,317,168,871 1,388,528,872 Industrial Property 293,358,933 301,374,562 320,252,647 352,597,172 375,779,078 Institutional Property 51,166,295 52,189,614 53,238,122 55,083,915 62,374,562 Recreational Property 6,115,328 6,133,095 7,224,152 7,696,478 12,602,506 Vacant Land 61,677,002 69,678,289 63,246,439 71,994,290 103,091,452 Total Secured 3,908,431,564 4,166,443,837 4,327,526,487 4,603,068,842 4,915,699,844 Unsecured 233,956,577 244,900,101 203,990,721 238,648,256 265,487,094 Cross Reference 132,191,188 191,677,047 167,408,698 136,003,676 143,866,674 SBE Nonunitary 4,429,496 4,429,496 4,429,496 3,238,280 3,238,280 Total Taxable Assessed Value 4,279,008,825$ 4,607,450,481$ 4,703,355,402$ 4,980,959,054$ 5,328,291,892$ Total Direct Tax Rate 0.19792 0.19269 0.19630 0.19222 0.19123 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 153Page 800 of 860
City of National City
2023/24 Use Category Summary
(Percentages)
Source: San Diego County Assessor 2022/23 Combined Tax Rolls 154Page 801 of 860
Source: HdL, San Diego County Assessor 2023/24 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
155Page 802 of 860
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156Page 803 of 860
Secured Nonunitary Utilities Unsecured
Parcels 9,723 4 1,798
TRAs 40 2 20
Values
Land 2,411,006,634 $ 3,238,280$ -$ Improvements 3,042,109,759 - 80,196,277 Personal Property 3,213,803 - 193,101,161 Fixtures - - - Aircraft - - - Total Value 5,456,330,196$ 3,238,280$ 273,297,438$ Exemptions
Real Estate 396,763,678$ -$ 1,005,329$ Personal Property - - 6,805,015 Fixture - - - Aircraft - - - Homeowners 26,949,239 - 154,000 Total Exemptions 396,763,678$ -$ 7,810,344$ Total Net Value 5,059,566,518$ 3,238,280$ 265,487,094$ Combined Values Total
Total Values 5,732,865,914$
Total Exemptions 404,574,022$
Net Total Values 5,328,291,892$
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 2023/24 Combined Tax Rolls City of National City
2023/24 Roll Summary
Taxable Property Values
Source: San Diego County Assessor 2013/14 Combined Tax Rolls 157Page 804 of 860
2014 2015 2016 2017 2018
Apparel Stores 134,000$ 137,438$ 143,715$ 146,387$ 150,713$ General Merchandise 170,467 176,094 176,709 174,132 178,618 Food Stores 21,480 20,764 20,704 20,343 20,269 Eating and Drinking Places 149,337 164,434 176,394 182,940 201,294 Building Materials 41,883 60,619 72,864 97,253 108,053 Auto Dealers and Supplies 578,338 626,552 637,577 611,916 604,748 Service Stations 83,541 75,550 68,862 73,382 90,116 Other Retail Stores 161,279 169,083 172,552 173,533 169,920 All Other Outlets 91,982 101,009 103,110 107,858 100,162 Total 1,432,307$ 1,531,542$ 1,572,487$ 1,587,745$ 1,623,892$ 2023 is the most current data set available for disclosure as of FY 2024 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.

Calendar Year
(in thousands of dollars)
City of National City
Taxable Sales by Category
Last Ten Calendar Years
Source: State of California Board of Equalization and The HdL Companies 158Page 805 of 860
2019 2020 2021 2022 2023
Apparel Stores 149,154$ 92,393$ 162,196$ 159,131$ 157,161$ General Merchandise 182,251 149,762 188,799 203,861 202,680 Food Stores 20,320 23,442 24,791 26,468 27,506 Eating and Drinking Places 219,238 185,066 237,886 271,136 267,641 Building Materials 85,452 99,399 132,060 135,849 111,398 Auto Dealers and Supplies 629,002 609,666 738,520 729,474 680,133 Service Stations 100,164 71,225 98,728 133,320 133,178 Other Retail Stores 168,905 147,275 187,179 180,467 173,307 All Other Outlets 123,084 95,053 114,831 577,652 585,734 Total 1,677,571$ 1,473,281$ 1,884,990$ 2,417,359$ 2,338,737$

2023 is the most current data set available for disclosure as of FY 2024 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.

Calendar Year
(in thousands of dollars)
City of National City
Taxable Sales by Category (Continued)
Last Ten Calendar Years
Source: State of California Board of Equalization and The HdL Companies 159Page 806 of 860
2015 2016 2017 2018 2019
Current Year Tax Levy 3,240,544$ 3,205,191$ 3,335,753$ 3,619,238$ 3,687,359$ Current Tax Collections 3,227,793 3,195,983 3,333,476 3,601,115 3,667,444 Percent of Levy Collected 99.61% 99.71% 99.93% 99.50% 99.46% Delinquent Tax Receivable 19,758 17,764 16,226 10,737 16,840 Delinquent Tax Collections 1,312 1,564 1,465 2,008 1,948 Total Tax Collections 3,229,105$ 3,197,547$ 3,334,941$ 3,603,123$ 3,669,393$ Percent of Total Tax
Collections To Tax Levy 99.65% 99.76% 99.98% 99.55% 99.51% Outstanding Delinquent Taxes 31,197$ 25,408$ 17,038$ 26,852$ 34,807$ Percent of Delinquent Taxes
To Tax Levy 0.96% 0.79% 0.51% 0.74% 0.94%
Last Ten Fiscal Years
City of National City
Property Tax Levies and Collections
Fiscal Year
Source: San Diego County Property Tax Services
160Page 807 of 860
2020 2021 2022 2023 2024
Current Year Tax Levy 3,896,676$ 4,096,739$ 4,233,369$ 4,200,548$ 4,392,636$ Current Tax Collections 3,890,504 4,082,104 4,221,118 4,191,427 4,382,550 Percent of Levy Collected 99.84% 99.64% 99.71% 99.78% 99.77% Delinquent Tax Receivable 16,741 16,816 16,976 18,734 22,001 Delinquent Tax Collections 1,868 2,650 2,256 2,205 2,869 Total Tax Collections 3,892,372$ 4,084,754$ 4,223,374$ 4,193,632$ 4,385,419$ Percent of Total Tax
Collections To Tax Levy 99.89% 99.71% 99.76% 99.84% 99.84% Outstanding Delinquent Taxes 21,044$ 28,801$ 26,971$ 25,650$ 29,218$ Percent of Delinquent Taxes
To Tax Levy 0.54% 0.70% 0.64% 0.61% 0.67%
Last Ten Fiscal Years
City of National City
Property Tax Levies and Collections (Continued)
Fiscal Year
Source: San Diego County Property Tax Services
161Page 808 of 860
Agency 2015 2016 2017 2018 2019
Basic Levy¹ 1.00000 1.00000 1.00000 1.00000 1.00000
Chula Vista Elementary 0.04753 0.04301 0.04323 0.03594 0.03917 Gen Bond National City-Prop N 11/04/14 Ser 2014A 0.00000 0.03055 0.02867 0.02629 0.01449 Metropolitan Water District 0.00000 0.00000 0.00000 0.00000 0.01022 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 National City Gen. Obligation Bonds 2002 Series A 0.00960 0.00920 0.00880 0.00790 0.00730 San Diego Community College Bond 0.04381 0.03939 0.03912 0.03447 0.03941 Southwestern Community College 0.03582 0.03961 0.03856 0.04981 0.04671 Sweetwater High Bond 0.05407 0.05169 0.05162 0.05156 0.05283 Total Direct & Overlapping² Tax Rates 1.19433 1.21695 1.21350 1.20947 1.21363 City's Share of 1% Levy Per Prop 133 0.17720 0.17720 0.17720 0.17720 0.17720 General Obligation Debt Rate 0.00960 0.00920 0.00880 0.00880 0.00730 Voter Approved City Debt Rate 0.00960 0.00920 0.00880 0.00790 0.00730 Redevelopment Authority Rate4 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rate5 0.20747 0.20813 0.19685 0.19685 0.19462 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 162Page 809 of 860
Agency 2020 2021 2022 2023 2024
Basic Levy¹ 1.00000 1.00000 1.00000 1.00000 1.00000
Chula Vista Elementary 0.03743 0.06455 0.06279 0.05049 0.06227 Gen Bond National City-Prop N 11/04/14 Ser 2014A 0.00000 0.00000 0.05092 0.05834 0.00350 Metropolitan Water District 0.00000 0.00000 0.00350 0.00350 0.04023

0.00350 0.00350 0.00000 0.00000 0.00000
National City Gen. Obligation Bonds 2002 Series A 0.03129 0.03064 0.00000 0.05834 0.03075 San Diego Community College Bond 0.03801 0.03700 0.03699 0.03526 0.04581 Southwestern Community College 0.04482 0.02792 0.04854 0.04215 0.06460 Sweetwater High Bond 0.05159 0.04880 0.04611 0.06911 0.00000 Total Direct & Overlapping² Tax Rates 1.20664 1.21241 1.24885 1.25885 1.24716 City's Share of 1% Levy Per Prop 133 0.17720 0.17720 0.17720 0.17720 0.17720 General Obligation Debt Rate 0.00880 0.00000 0.00000 0.00000 0.00000 Voter Approved City Debt Rate 0.00670 0.00590 0.00590 0.00572 0.00518 Redevelopment Authority Rate4 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rate5 0.19792 0.19269 0.19630 0.19222 0.19123 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 (Continued)
Last Ten Fiscal Years
Source: HdL, San Diego County Assessor 2004/05-2013/14 Tax Rate Tables 163Page 810 of 860
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 280,659,918 $ 1 5.27% - - - PASHA AUTOMOTIVE SERVICES 83,681,927 2 1.57% - - - PVHR LLC 69,271,793 3 1.30% - - - H G FENTON PROPERTY COMPANY 58,276,752 4 1.09% - - - PRIME HEALTHCARE PARADISE VALLEY LLC 53,097,681 5 1.00% - - - COSTCO WHOLESALE CORPORATION 50,060,869 6 0.94% - - - 2500 B (CALIFORNIA) LP 47,797,083 7 0.90% - - - NATIONAL CITY INVESTMENT LP 47,688,427 8 0.90% - - - CALIFORNIA HAFFLEY INDUSTRIAL PARK (DE) 44,370,000 9 0.83% - - - MGPXIUS PROPERTIES LLC 40,047,068 10 0.75% - - - CENTERMARK PROPERTIES INC - - - 248,433,724$ 1 7.41% PASHA AUTOMOTIVE SERVICES - - - 105,001,256 2 3.13% PVHRLLC - - - 54,289,522 3 1.62% SUMMERCREST APARTMENTS LP - - - 46,250,000 4 1.38% COSTCO WHOLESALE CORPORATION - - - 33,216,419 5 0.99% MPT OF PARADISE VALLEY LP - - - 30,892,670 6 0.92%

DIXILINE LUMBER COMPANY -
- - 30,855,027 7 0.92%
FENTON NCP LCC - - - 30,508,368 8 0.91% TARGET CORPORATION - - - 27,989,169 9 0.83% SWEEETWATER ASSOCIATES LP - - - 24,046,115 10 0.72% Top Ten Total 774,951,518$ 14.54% 631,482,270$ 18.82% City Total 5,062,804,798$
Source: HdL Property Principal Property Tax Payer
City of National City
Principal Property Tax Payers
Current Year and Nine Years Ago
2023/24 2014/15
Source: HdL, San Diego County Assessor 2013/14- 2022/2023 Combined Tax Rolls and the SBE Non Unitary Tax Rolls 164Page 811 of 860
Year Full Value Sales Average Price Median Price Median % Change 2022 221 593,471$ 620,000$ 0.00% 2023 164 594,887 608,750 -1.81% 2024 76 603,007 606,750 -0.33% City of National City
Sales Value History
Single Family Residential Full Value Sales (1/1/2022-6/30/2024) Source: San Diego County Recorder
165Page 812 of 860
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166Page 813 of 860
Calendar Year 2023 2013-14
Business Name Business Category Business Name Business Category Austal Usa Transportation Non Auto Arco Service Stations Ball Mitsubishi New Motor Vehicle Dealers Arco AM PM Service Stations Burlington Family Apparel Ball Mitsubishi New Motor Vehicle Dealers Chevron Service Stations Frank Hyundai New Motor Vehicle Dealers Chevron Circle K Service Stations Frank Subaru New Motor Vehicle Dealers Dalton Subaru National City New Motor Vehicle Dealers Frank Toyota New Motor Vehicle Dealers Dalton Toyota National City New Motor Vehicle Dealers JC Penney Department Stores Frank Hyundai New Motor Vehicle Dealers Macys Department Stores Hd Supply White Cap Building Materials Mor Furniture 4 Less Home Furnishings Macy's Department Stores Mossy Nissan New Motor Vehicle Dealers Mossy Nissan New Motor Vehicle Dealers Nordstrom Rack Department Stores National City Volkswagon New Motor Vehicle Dealers Perry Chrysler Dodge Jeep Ram New Motor Vehicle Dealers Nordstrom 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 County Buick Gmc New Motor Vehicle Dealers South County Buick GMC New Motor Vehicle Dealers Speedway Express Service Stations Sweetwater Harley Davidson Boats/Motorcycles Stars & Stripes Service Stations T Mobile Electronics/Applicance Stores Target Discount Dept Stores Target Discount Dept Stores Walmart Supercenter Discount Dept Stores Univar Solutions USA Drugs/Chemicals Westcott 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/businesses listed alphabetically * Firms/businesses listed alphabetically 2024 information not available. 2024 information not available.

City of National City
Top 25 Sales Tax Producers*
For 2022-23 & 2013-14
Source: Hinderliter, de Llamas Associates, State Board of Equalization 167Page 814 of 860
2015 2016 2017 2018 2019
Governmental Activities:

NCJPFA Lease Revenue Refunding Bond 1,425,000$ 965,000$ 490,000$ -$ -$ Tax Allocation Bonds - - - - - General Obligation Bonds 4,371,263 4,123,858 3,917,653 3,635,000 3,360,000 Bond Premium 20,863 19,258 17,653 16,048 14,443 2017 Clean Energy Bonds - - - 1,800,000 1,800,000 2017 Lease Revenue Bonds - - - 3,530,497 3,407,479 2021 Pension Obligation Bonds - - - - - Bond discount - - - - - Notes payable - - 1,158,837 1,043,788 925,530 HUD 108 Bond 2003 A 4,140,000 3,805,000 3,440,000 3,050,000 2,630,000 Total Bonded Debt 9,957,126$ 8,913,116$ 9,024,143$ 13,075,333$ 12,137,452$ Per Capita 5,437$ 146$ 128$ 6,479$ 6,012$ Percent of Taxable Assessed Values 243.02% 217.53% 0.19% 271.26% 252.79% Other Governmental Activities Debt
Lease liabilities 1,948,686 1,723,764 1,494,160 1,264,425 1,001,185 Business-Type Activities:

Notes Payable-Deed of Trust 1,311,137 1,027,967 725,833 403,464 - Total Primary Government 13,216,949$ 11,664,847$ 11,244,136$ 14,743,222$ 13,138,637$ Percent of Personal Income 1.35% 1.14% 0.96% 1.27% 1.06% Per Capita 223$ 192$ 164$ 220$ 196$ 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 168Page 815 of 860
2020 2021 2022 2023 2024
Governmental Activities:

NCJPFA Lease Revenue Refunding Bond -$ -$ -$ -$ -$ Tax Allocation Bonds 2,175,000 1,690,000 1,170,000 605,000 General Obligation Bonds 3,080,000 2,790,000 2,490,000 2,175,000 1,845,000 Bond Premium 12,838 11,233 9,628 8,023 6,418 2017 Clean Energy Bonds 1,800,000 1,800,000 1,800,000 1,800,000 1,715,365 2017 Lease Revenue Bonds 3,273,024 3,110,214 2,933,781 2,743,061 2,622,125 2021 Pension Obligation Bonds - - 83,895,000 81,330,000 77,675,000 Bond discount - - (142,838) (135,696) (128,554) Notes payable 803,972 679,023 550,588 418,569 282,867 HUD 108 Bond 2003 A - - - - - Total Bonded Debt 11,144,834$ 10,080,470$ 92,706,159$ 88,943,957$ 84,018,221$ Per Capita 179$ 4,990$ 1,477$ 1,459$ 1,378$ Percent of Taxable Assessed Values 0.22% 2.11% 2.00% 1.79% 1.58% Other Governmental Activities Debt
Lease liabilities 768,283 627,547 479,639 326,372 167,670 Business-Type Activities:

Notes Payable-Deed of Trust - - - - - Total Primary Government 11,913,117$ 10,708,017$ 93,185,798$ 89,270,329$ 84,185,891$ Percent of Personal Income 0.96% 0.87% 8.02% 7.70% 7.27% Per Capita 179$ 162$ 1,487$ 1,427$ 1,348$ Fiscal Year
City of National City
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Source: City of National City financial statements / notes to the financial statements 169Page 816 of 860
2023-24 Assessed Valuation: $5,331,044,825
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2024 % Applicable (1) 6/30/2024 Metropolitan Water District 18,210,000 $ 0.138% 25,130 $ San Diego Community College District 1,306,954,859 0.002 26,139 Southwestern Community College District 739,044,345 6.894 50,949,717 Chula Vista City School District 198,022,000 1.213 2,402,007 Chula Vista City School District School Facilities Improvement District No. 1 72,395,000 2.027 1,467,447 National School District 34,637,000 93.171 32,271,639
Sweetwater Union High School District 596,765,971 8.173 48,773,683 Sweetwater Union High School District Community Facilities Districts 2,192,960 2.319 50,864 City Overlapping Tax and Assessment Debt Subtotal 137,811,626 City of National City 1,845,000 100.

City Tax and Assessment Debt Subtotal 1,845,000 - Total Direct and Overlapping Tax and Assessment Debt 137,811,626 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Diego County General Fund Obligations 374,600,000 $ 0.758% 2,839,468 $ San Diego County Pension Obligation Bonds 211,225,000 0.758 1,601,086 San Diego County Superintendent of Schools Obligations 6,050,000 0.758 45,859 Southwestern Community College District General Fund Obligations - - Sweetwater Union High School District Certificates of Participation 390,000 8.173 31,875 Chula Vista City School District Certificates of Participation 167,735,000 1.213 2,034,626 City of National City General Fund Obligations 4,337,490 100. 4,337,490 City of National City Pensions Obligation Bonds 77,675,000 100. 77,675,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT - $ 88,565,404 $ Overlapping Tax Increment Debt (Successor Agency) 29,445,000 $ 100% 29,445,000 $ COMBINED TOTAL DEBT -$ 255,822,030 $ Total Direct Debt 83,857,490$
Total Overlapping Debt 171,964,540
Combined Total Debt2 255,822,030$
Ratios to 2023-24 Assessed Valuation:

Direct Debt ($1,845,000) 0.03%
Total Direct and Overlapping Tax and Assessment Debt 2.59% Total Direct Debt ($83,857,490) 1.57%
Combined Total Debt 4.80%
Ratios to Redevelopment Successor Agency Incremental
Valuation ($2,886,194,000):

Total Overlapping Tax Increment Debt 1.02%
City of National City
Direct and Overlapping Debt
As of June 30, 2023
¹ The percentage o f overlapping debt applicable to the cit y is estimate d using taxable assesse d property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
² Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Source: California Municipal Statistics, Inc.
170Page 817 of 860
Year Secured Unsecured SBE Nonunitary Net Total AV % Change 2014/15 3,151,745,766$ 197,869,900$ 5,224,473$ 3,354,840,139$ 0.00% 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% 2023/24 5,059,566,518 265,487,094 3,238,280 5,328,291,892 6.97%

5.27%
* Net AV Changes less than two percent are in purple font. Negative Net AV percent changes are in red.

Annual Growth Rate (AGR) is calculated as the mean annualized growth rate for compounding values over a given time period.

Annual Growth Rate %
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 171Page 818 of 860
2015 2016 2017 2018 2019
Assessed Valuation 3,354,840,139 $ 3,440,631,221 $ 3,588,038,313 $ 3,877,829,380 $ 4,057,201,760 $ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 838,710,035 $ 860,157,805 $ 897,009,578 $ 969,457,345 $ 1,014,300,440 $ Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 125,806,505 $ 129,023,671 $ 134,551,437 $ 145,418,602 $ 152,145,066 $ Total Debt (due more than one year) 20,579,839$ 19,496,761 $ 19,090,044 $ 22,603,785 $ 22,569,433 $ Less: Non Bonded Debt
Claims Payable (5,580,594) (6,112,318) (6,416,518) (7,089,594) (8,262,594) Compensated Absences (1,632,485) (1,821,032) (2,023,755) (1,372,764) (1,622,476) Capitalized Lease Obligation (1,723,765) (1,494,160) (1,249,932) (1,001,185) (768,962) Notes Payable (1,027,967) (725,833) (403,465) - - Total Applicable to Limitation 10,615,028 9,343,418 8,996,374 13,140,242 11,915,401 Legal Debt Margi
n 115,191,477$ 119,680,253 $ 125,555,063 $ 132,278,360 $ 140,229,665 $ Total debt applicable to the limit as
a percentage of debt limit 8% 7% 7% 9% 8%
Source: City of National City financial statements / notes to the financial statements Fiscal Year
City of National City
Legal Debt Margin Information
Last Ten Fiscal Years
Source: City of National City financial statements / notes to the financial statements 172Page 819 of 860
2020 2021 2022 2023 2024
Assessed Valuation 4,279,008,825 $ 4,523,039,978 $ 4,703,355,402 $ 4,980,959,594 $ 5,328,291,892 $ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation 1,069,752,206 $ 1,130,759,995 $ 1,175,838,851 $ 1,245,239,899 $ 1,332,072,973 $ Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit 160,462,831 $ 169,613,999 $ 176,375,828 $ 186,785,985 $ 199,810,946 $ Total Debt (due more than one year) 27,024,384$ 26,503,876 $ 108,135,511 $ 105,034,519 $ 101,816,490 $ Less: Non Bonded Debt
Claims Payable (11,356,000) (11,948,000) (10,966,000) (11,292,000) (12,933,000) Compensated Absences (3,755,267) (3,847,859) (3,983,713) (4,472,190) (4,697,599) Capitalized Lease Obligation (768,283) (627,547) (479,639) (326,372) (167,670) Notes Payable - - - (418,569) (282,867) Total Applicable to Limitation 11,144,834 10,080,470 92,706,159 88,525,388 83,735,354 Legal Debt Margi
n 149,317,997$ 159,533,529 $ 83,669,669 $ 98,260,597 $ 116,075,592 $ Total debt applicable to the limit as
a percentage of debt limit 7% 6% 53% 47% 42%
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 173Page 820 of 860
2015 2016 2017 2018 2019
Revenue
Property Tax Gross Incremental Revenue 12,705,481$ 11,558,679$ 7,740,998$ 8,921,732$ 5,185,031$ Debt Service Requirements
Principal 5,230,000 2,070,000 2,220,000 3,163,000 3,113,000 Interest and Fiscal Charges 3,484,532 3,078,878 2,980,532 1,166,000 1,088,084 8,714,532$ 5,148,878$ 5,200,532$ 4,329,000$ 4,201,084$ Debt Coverage 1.46 2.24 1.49 2.06 1.23
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 174Page 821 of 860
2020 2021 2022 2023 2024
Revenue
Property Tax Gross Incremental Revenue 1,204,954$ 2,687,984$ 3,485,844$ 4,199,028$ 3,950,251$ Debt Service Requirements
Principal 3,113,000 3,194,000 3,131,000 3,208,000 3,286,000 Interest and Fiscal Charges 1,088,084 1,009,785 931,307 852,589 772,020 4,201,084$ 4,203,785$ 4,062,307$ 4,060,589$ 4,058,020$ Debt Coverage 0.29 0.64 0.86 1.03 0.97
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 175Page 822 of 860
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176Page 823 of 860
Year
Total
Population
Pct of SD
County
Population
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
2014 59,235 1.9% 0.5% 31.5 3.41 69.8% 12.5% 8.1% 977,614$ 16,504 $ 2015 60,768 1.8% 2.6% 31.9 3.41 70.8% 12.7% 6.6% 1,020,729 16,797 2016 61,210 1.8% 0.7% 32.2 3.40 72.3% 12.9% 5.9% 1,048,669 17,132 2017 62,257 1.9% 1.7% 32.5 3.4 72.4% 14.2% 5.0% 1,078,906 17,329 2018 62,307 1.9% 0.1% 32.5 3.4 73.5% 14.6% 4.4% 1,155,824 18,550 2019 62,099 1.9% -0.3% 33.6 3.39 74.2% 14.9% 4.1% 1,291,429 20,796 2020 62,749 1.9% 1.0% 34.2 3.3 74.9% 14.2% 12.6% 1,347,968 21,481 2021 61,471 1.9% -2.0% 33.9 3.4 75.4% 15.8% 9.3% 1,418,597 23,077 2022 60,974 1.8% -0.8% 36.8 3.14 74.0% 15.0% 4.6% 1,315,680 21,577 2023 58,555 1.8% -4.0% 36.0 2.74 75.2% 15.9% 4.8% 1,440,973 24,608 * 2024 information not available.
1 Dollar values are inflation-adjusted
2 United States Census Bureau

City of National City
Demographic and Economic Statistics
Last Ten Fiscal Years
Educational Attainment
177Page 824 of 860
2015 2016 2017 2018 2019
Function/Program
General Government
City Clerk 3.00 3.00 3.00 3.00 3.00
City Manager 8.00 8.00 8.00 7.00 7.00
Risk Management 1.00 1.00 1.00 1.00 1.00
Management Information Systems 3.50 4.00 4.00 4.00 4.00 Finance 14.77 15.77 14.29 14.29 14.29
Purchasing 1.48 1.48 1.48 1.48 1.48
City Attorney 4.00 3.50 4.00 4.00 5.00
Human Resources 3.00 5.00 5.00 4.00 3.00
Community Development 15.01 ————
Planning 3.00 4.00 4.00 5.00 5.00
Building 4.00 5.00 5.00 5.00 4.00
Engineering 11.00 13.00 13.00 13.00 13.00
Redevelopment —————
Housing & Economic Development 15.00 15.00 16.00 15.00 15.00 Neighborhood Services 10.00 11.00 11.00 11.00 11.00
Public Works 45.00 45.00 46.50 46.50 46.50
Community Services 15.01 17.98 18.98 18.98 18.98
Nutrition Center 10.00 10.00 10.00 9.00 9.00
Library 20.35 21.35 21.85 21.85 21.85
Public Safety
Police 129.50 129.50 126.98 126.98 128.98
Fire 43.00 47.00 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
178Page 825 of 860
2020 2021 2022 2023 2024
Function/Program
General Government
City Clerk 3.00 2.00 2.00 3.00 3.00
City Manager 7.00 11.00 5.00 7.00 5.00
Risk Management 1.00 1.00 1.00 1.00 1.00
Management Information Systems 4.00 4.00 4.00 3.00 4.00 Finance 14.29 15.29 14.50 12.50 13.50
Purchasing 1.00 1.00 1.00 1.00 1.00
City Attorney 5.00 5.00 4.00 4.00 4.00
Human Resources 4.00 4.00 4.50 5.00 5.00
Community Development —————
Planning 5.00 5.00 5.00 6.00 5.00
Building 4.00 4.00 4.00 4.00 4.00
Engineering 10.60 11.00 11.00 11.00 11.00
Redevelopment —————
Housing & Economic Development 15.00 14.00 15.00 15.00 15.00 Neighborhood Services 12.00 12.00 10.00 12.00 13.00
Public Works 49.90 51.00 49.00 50.00 50.00
Community Services 17.00 18.98 11.50 6.00 13.50
Nutrition Center 9.00 10.00 7.25 6.00 6.00
Library 22.85 22.85 7.50 8.00 8.00
Public Safety
Police 128.98 129.94 123.00 128.00 131.00
Fire 51.00 47.00 52.00 52.00 53.00
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
179Page 826 of 860
2015 2016 2017 2018 2019
Function/Program
Police
Physical Arrests 3,484 3,418 3,078 2,733 2,567 Parking Violations 7,434 8,659 7,958 8,693 7,348 Traffic Violations 1,801 1,561 1,563 1,772 1,987 Fire
Emergency Responses 7,815 8,228 8,403 8,815 8,463 Fires Extinguished 121 141 125 138 120 Inspections 1,316 900 837 914 820 Other Public Works
Street Resurfacing (miles) 2 - - 2 34 Parks and Recreation
Athletic Field Permits Issued 18 26 28 28 13 Community Center Admissions¹ 18,138 42,762 43,396 45,342 56,988 Library
Volumes in Collection 238,114 233,109 231,683 233,086 206,210 Total Volumes Borrowed 189,145 129,762 111,271 110,023 103,594 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
180Page 827 of 860
2020 2021 2022 2023 2024
Function/Program
Police
Physical Arrests 1,693 1,654 1,393 1,446 1,363 Parking Violations 2,541 9,573 9,135 7,299 8,111 Traffic Violations 1,119 1,030 929 1,149 1,395 Fire
Emergency Responses 7,784 7,914 8,222 8,068 8,145 Fires Extinguished 149 199 249 245 247 Inspections 599 1,035 1,112 933 1,023 Other Public Works
Street Resurfacing (miles) 2 1 1 3 2 Parks and Recreation
Athletic Field Permits Issued 11 6 10 10 Community Center Admissions¹ 54,906 31,661 30,734 46,536 46,536 Library
Volumes in Collection 204,284 229,019 214,289 215,984 217,905 Total Volumes Borrowed 68,061 16,203 37,038 49,857 577,703 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 (Continued)
Last Ten Fiscal Years
Sources: Various City departments
181Page 828 of 860
2015 2016 2017 2018 2019
Function/Program
Police
Stations 11111
Zone Offices 11001
Patrol Units 38 45 45 45 60
Fire Stations 22222
Other Public Works
Streets (miles) 101 101 108 108 108
Highways (miles) 66999
Streetlights 1,730 1,730 1,995 1,995 2,731
Traffic Signals 74 75 74 80 80
Parks and Recreation
Acreage 84 75 80 80 80
Playgrounds 45555
Baseball/Softball Diamonds 55555
Soccer/Football Fields 11111
Community Centers 51115
Wastewater
Sanitary Sewers (miles) 97 97 104 104 104
Storm Sewers (miles) 45.0 45.0 96.0 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
182Page 829 of 860
2020 2021 2022 2023 2024
Function/Program
Police
Stations 11111
Zone Offices 11111
Patrol Units 60 60 69 60 60
Fire Stations 23333
Other Public Works
Streets (miles) 108 108 108 108 0
Highways (miles) 99990
Streetlights 2,731 2,731 848 2,731 2,731
Traffic Signals 82 82 80 80 80
Parks and Recreation
Acreage 80 92 92 92 92
Playgrounds 55555
Baseball/Softball Diamonds 55555
Soccer/Football Fields 11111
Community Centers 15555
Wastewater
Sanitary Sewers (miles) 104 104 104 104 104
Storm Sewers (miles) 96.0 96.0 96 96 96
Treatment Capacity (million gallons per day) 7.20 7.20 7 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
183Page 830 of 860
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184Page 831 of 860

AGENDA REPORT

Department: Finance
Prepared by: Bruce Foltz, Director of Finance
Meeting Date: Tuesday, December 2, 2025
Approved by: Alejandro Hernandez, Acting City Manager

SUBJECT:

Fiscal Year 2025 Budget Review

RECOMMENDATION:

Accept and File this Report, and Adopt the Resolution Entitled: “Resolution of the City Council of the City of National City, California, Ratifying Various Fiscal Year 2025 Budget Adjustments.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

BACKGROUND
As part of the City of National City’s Strategic Plan objective to provide consistent financial reports, this staff report to City Council presents an update on the City’s financial operations for the fiscal year ending June 30, 2025.

DISCUSSION
Budgets are projections based on known and anticipated future revenues and expenditures.

Throughout the year, staff monitor and analyze revenues and expenditures, develop projections, and provide periodic financial reports to the City Council, City Manager, and department directors.

The totals presented herein for fiscal year 202 5 are a summary of the actual revenues and expenditures, and their impact on fund balance compared to the corresponding budgeted amounts for the year. The amounts in this report are unaudited and subject to change upon completion of the City’s Annual Comprehensive Financial Report.

Fiscal Year 2025
The fiscal year 202 5 adopted budget projected the use of $4.9 million of the General Fund’s unassigned fund balance. After a review of the fiscal year’s revenues and expenditures through June 30, 2025, the use of fund balance has increased to $5.0 million. The variances between budgeted and actual revenues and expenditures , and the impacts on fund balance are summarized below. Further, staff has determined that certain year-end budget adjustments were necessary and seeks ratification of the adjustments described in the Expenditures and Budget Adjustments section below and detailed in Exhibit A.

Revenues
The City receives revenues from various sources, some of which, such as taxes and fees, provide unrestricted cash that may be used at the City’s discretion. Other revenues are reserved for specified purposes, for example, grant funds received for capital projects. Actual General Fund revenues, including transfers from other funds, for fiscal year 202 5, listed by source in the table