Pacific Grove City Council
April 2, 2025

Formerly
Major Fund
Capital
CDBG Improvement ASBS Nonmajor Total
General RSTP Grant Projects Grant Governmental Governmental Fund Fund Fund Fund Fund Funds Funds
REVENUES:

Taxes:

Property taxes 10,001,561 $ - $ -$ -$ $ 10,001,561 - $
Sales and use taxes 5,975,031 - - - 1,171,904 7,146,935 Franchise and other taxes 1,635,968 - - - 46,594 1,682,562 Transient occupancy taxes 6,820,365 - - - 555,504 7,375,869 Utility users taxes 2,118,068 - - - 2,118,068 -
Business license tax 607,647 - - - 37,264 644,911
Other taxes 177,881 - - - 177,881 -
Intergovernmental 278,308 69,450 110,948 - 1,282,243 1,740,949 Licenses, permits, and impact fees 1,322,285 - - - 1,322,285 - Fines and forfeitures 314,242 - - - 314,242 -
Charges for services 1,737,498 - - - 176,440 1,913,938
Interest, rents, and concessions 1,125,585 50,381 - 12,533 482,585 1,671,084 Contributions - - - - - -
Other revenues 1,135,321 - 91 1 134,238 1,269,651
Total revenues 33,249,760 69,450 50,472 123,482 3,886,772 37,379,936 EXPENDITURES:

Current:

General government 5,305,657 - 1,528 - 617,055 5,924,240 Public safety:

Police 7,850,494 - - - 775,380 8,625,874
Fire 4,508,537 - - - 4,514,064 5,527
Public works 4,399,770 - - - 328,648 4,728,418
Recreation 1,224,512 - - - 99,059 1,323,571
Library - 1,129,218 - - 77,029 1,206,247
Museum - 346,494 - - 346,494 -
Community development 2,908,796 5,131 - - 538,213 3,452,140 Capital outlay 291,690 378,644 534,384 - 1,381,539 2,586,257 Debt service:

Principal retirement 576,256 - - - 60,287 636,543
Interest 930,396 - - - 2,013 932,409
Total expenditures 378,644 29,471,820 5,131 535,912 3,884,750 34,276,257

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (309,194) 3,777,940 45,341 (412,430) 2,022 3,103,679 OTHER FINANCING SOURCES (USES):

Transfers in 3,359 - 750,000 - 322,000 1,075,359
Transfers out (1,252,510) - - - (10,349) (1,262,859)
Proceeds from sale of assets 6,800 - - - 6,800 -
Inception of subscription liabilities 20,846 - - - 20,846 - Total other financing sources (uses) - (1,221,505) 750,000 - 311,651 (159,854)

NET CHANGES IN
FUND BALANCES 2,556,435 (309,194) 45,341 337,570 313,673 2,943,825 FUND BALANCES (DEFICIT):

Beginning of year, previously reported 15,025,353 1 - ,279,642 22,626 23,629 8 25 ,656,893 ,008,143 Change with financial reporting
entity (major and non-major fund
classification) (Note 16) - (40,122) - - (23,629) - 63,751 Beginning of year, as restated (Note 16) 15,025,353 1 (40,122) ,279,642 - 8 22,626 ,720,644 25,008,143 End of year $ 17,581,788 $ 1 (349,316) $ 360 ,324,983 $ - ,196 $ 9 $ 27 ,034,317 $ ,951,968 Major Funds
City of Pacific Grove
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 33 PGCC 4-2-25

Net change in fund balances - total governmental funds: $ 2,943,825 Amounts reported for governmental activities in the Statement of Activities are different because:
2,535,606
The net effect of disposal of capital assets. (6,400)
(1,829,016)
(1,227)
127,709
(2,940)
(2,477,311)
Principal repayments of long-term debt 1,562,944
Accreted interest accrued in pension obligation bond (459,626) Inception of subscription liabilities 1,082,472 (20,846) 662,758
414,788
Change in net position of governmental activities $ 3,450,264 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The net revenue of the internal service funds was reported with governmental activities.

Unavailable revenue is not recognized as revenue in the governmental funds since the revenue is not available to fund expenditures of the current year.

The fund financial statements record interest expenditures on the current financial resources measurement focus whereas the Government-Wide financial statements recognize interest expense on the accrual basis.

The reconciling amount was the change in accrued interest from the prior year.

Proceeds from long-term debt provided current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position. Repayment of bond principal was an expenditure in the governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Depreciation and amortization expenses on capital and lease assets were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, depreciation and amortization expenses were not reported as an expenditure in the governmental funds.

Long-term compensated absences expense was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. Therefore, the change in long-term compensated absences was not reported as an expenditure in the governmental funds.

Other postemployment benefits and pension expenses were reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. Therefore, the increase in other postemployment benefits liability and net pension liabilities were not reported as an expenditure in the governmental funds.

OPEB expense net of contribution made after measurement date reported in deferred outflows of resources in the Government-Wide Statement of Net Position but reported as OPEB expenditures in the governmental fund
Pension expense net of contribution made after measurement date reported in deferred outflows of resources in the Government-Wide Statement of Net Position but reported as pension expenditures in the governmental funds
Capital outlay ($50,651 of capital outlay expenditures were for current public works expenditures for repairs and maintenance and therefore, were not capitalized).

City of Pacific Grove
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of For the Year Ended June 30, 2024
Acquisition of capital assets was reported as expenditures in the governmental funds. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over the estimated useful lives as depreciation expense. The following was the amount of capital assets recorded in the current period:

Activities and Changes in Net Position
See accompanying Notes to the Basic Financial Statements. 34 PGCC 4-2-25

35 City of Pacific Grove, California
Proprietary Fund Financial Statements
Cemetery Fund - accounts for revenue from cemetery site sales and the Little Chapel lease. The City operates and maintains the El Carmelo Cemetery. Expenditures reflect staffing, maintenance, and equipment costs.

Local Water Project Fund - accounts for revenues and expenses related to the reclamation plant’s operation, treatment, and sale of recycled water.

Sewer Fund - accounts for revenues and expenses of the City's sewer operations.

Golf Course Fund - accounts for revenues related to concessionaire leases for the golf course driving range, club house, pro shop, and restaurant; and any agreed upon expenses, property improvement costs, and debt service.

Perkins Park
PGCC 4-2-25

Governmental
Local Activities
Cemetery Water Sewer Golf Course Internal
Fund Project Fund Fund Fund Total Service Funds
ASSETS
Current assets:

Cash and investments $ 1,105,693 $ 8,300,501 - $ $ 826,023 $ 1,441,565 10,232,217 $ Restricted cash and investments - 296,448 - - 296,448 70,237 Accounts receivable, net - 306,388 1,299,499 79,555 1,685,442 14,079 Interest receivable - - - 2,250 2,250 -
Loans receivable, due within one year - 40,513 - - 40,513 - Leases receivable, due within one year - - - 366,388 366,388 - Prepaid items - - - - - -
Total current assets 1,105,693 306,388 9,936,961 1,274,216 12,623,258 1,525,881 Noncurrent assets:

Advances to other funds - - 350,000 - 350,000 -
Leases receivable, due in more than one year - - - 1,327,494 1,327,494 - Capital assets
Capital assets, not depreciated 20 983,414 362,953 1,346,387 - - Capital assets, depreciated, net 386,128 5,897,764 16,583,263 4,270,528 27,137,683 - Total capital assets 386,148 5,897,764 17,566,677 4,633,481 28,484,070 - Total noncurrent assets 386,148 5,897,764 17,916,677 5,960,975 30,161,564 - Total assets 1,491,841 6,204,152 27,853,638 7,235,191 42,784,822 1,525,881

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 62,192 269,428 - - 331,620 111,369
Related to OPEB 7,137 17,582 - - 24,719 1,741
Total deferred outflows of resources 69,329 287,010 - - 356,339 113,110 (Continued)
City of Pacific Grove
Statement of Net Position
Proprietary Funds
June 30, 2024
Business-Type Activities
See accompanying Notes to the Basic Financial Statements. 36 PGCC 4-2-25

Governmental
Local Activities
Cemetery Water Sewer Golf Course Internal
Fund Project Fund Fund Fund Total Service Funds

LIABILITIES
Current liabilities:

Accounts payable 5,075 319,985 12,570 1,057,315 1,394,945 18,274 Payroll and related liabilities 13,407 - 4,471 - 17,878 - Interest payable - 18,274 4,805 27,664 50,743 -
Due to other funds - 28,103 - 28,103 - -
Claims payable, due within one year - - - - - 156,505
Compensated absences, due within one year 966 - 39,180 - 40,146 83 Long-term debt, due within one year - 162,592 70,044 207,941 440,577 - Total OPEB liability, due within one year 3,315 - 8,164 - 11,479 805 Total current liabilities 22,763 528,954 1,183,979 248,175 1,983,871 175,667 Noncurrent liabilities:

Advances from other funds - 350,000 - 350,000 - -
Claims payable, due in more than one year - - - - - 317,926 Compensated absences, due in more than one year 2,896 - 117,539 - 120,435 250 Long-term debt, due in more than one year - 4,223,069 503,660 1,318,327 6,045,056 - Total OPEB liability, due in more than one year 64,989 160,097 - - 225,086 15,853 Net pension liability 170,867 - 740,227 - 911,094 305,975 Total noncurrent liabilities 238,752 4,573,069 1,521,523 1,318,327 7,651,671 640,004 Total liabilities 261,515 5,102,023 2,705,502 1,566,502 9,635,542 815,671

DEFERRED INFLOWS OF RESOURCES
Related to leases - - - 1,615,537 1,615,537 -
Related to pensions 11,912 - 51,606 - 63,518 21,332
Related to OPEB 42,127 - 103,776 - 145,903 10,273
Total deferred inflows of resources 54,039 - 155,382 1,615,537 1,824,958 31,605

NET POSITION
Net investment in capital assets 386,148 1,512,103 16,246,982 3,107,213 21,252,446 - Restricted:

Debt service - - 296,448 - 296,448 -
Insurance reserve - - - - - 70,237
Unrestricted (deficit) 859,468 (409,974) 8,736,334 945,939 10,131,767 721,478 Total net position $ 1,245,616 $ 25,279,764 1,102,129 $ 4,053,152 $ 31,680,661 $ 791,715 $ (Concluded)
Business-Type Activities
June 30, 2024
City of Pacific Grove
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 37 PGCC 4-2-25

38 PGCC 4-2-25

Governmental
Local Activities
Cemetery Water Sewer Golf Course Internal
Fund Project Fund Fund Fund Total Service Funds
OPERATING REVENUES:

Charges for services $ 716,931 $ 1,026,820 $ 3,829,192 $ 745,216 $ 6,318,159 $ 2,014,597 Total operating revenues 716,931 1,026,820 3,829,192 745,216 6,318,159 2,014,597 OPERATING EXPENSES:

Contractual services and utilities 346,514 848,691 1,167,934 206,971 2,570,110 1,140,257 Personnel 16,935 - 267,721 - 284,656 31,869
Supplies and materials 48,076 20,428 70,364 15,948 154,816 216,150 Depreciation 40,745 310,409 515,887 182,867 1,049,908 - Total operating expenses 452,270 1,179,528 2,021,906 405,786 4,059,490 1,388,276 OPERATING INCOME (LOSS) 264,661 (152,708) 1,807,286 339,430 2,258,669 626,321 NONOPERATING REVENUES (EXPENSES):

Investment earnings 47,725 3,111 368,224 92,410 511,470 45,683 Interest expense - (44,796) (20,349) (62,981) (128,126) (9,246) Total nonoperating revenues (expenses) 47,725 (41,685) 347,875 29,429 383,344 36,437 INCOME (LOSS) BEFORE TRANSFERS 312,386 (194,393) 2,155,161 368,859 2,642,013 662,758 TRANSFERS:

Transfers in - 187,500 - 187,500 - -
Total transfers - 187,500 - - 187,500 -
CHANGES IN NET POSITION 312,386 (6,893) 2,155,161 368,859 2,829,513 662,758 NET POSITION:

Beginning of year 933,230 1,109,022 23,124,603 3,684,293 28,851,148 128,957 End of year $ 1,102,129 1,245,616 $ $ 25,279,764 $ 4,053,152 $ 791,715 31,680,661 $ Business-Type Activities
City of Pacific Grove
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 39 PGCC 4-2-25

Governmental
Local Activities
Cemetery Water Sewer Golf Course Internal
Fund Project Fund Fund Fund Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users $ 716,931 $ 792,315 $ 3,174,763 $ 688,058 $ 5,372,067 $ 2,189,327 Payments to suppliers (403,218) (627,168) (695,274) (254,996) (1,980,656) 791,891 Payments to employees (177,837) - (973,524) - (1,151,361) (339,319) Cash paid for insurance claims - - - - - (1,778,843)
Net cash provided by operating activities 135,876 165,147 1,505,965 433,062 2,240,050 863,056

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers from/(to) other funds - 28,103 187,500 - 215,603 - Interfund transactions - - - - - (108,002)
Net cash provided by (used in)
noncapital financing activities 28,103 - 187,500 - 215,603 (108,002)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - - (1,002,281) - (1,002,281) - Principal payments on long-term debt (160,982) - (199,183) (65,925) (426,090) - Interest paid on long-term debt (45,466) - (20,901) (66,591) (132,958) - Net cash used in capital
and related financing activities - (206,448) (1,089,107) (265,774) (1,561,329) - CASH FLOWS FROM INVESTING ACTIVITIES:

Payment on bank fees - - - - - (9,246)
Investment income received 47,725 3,111 368,224 92,410 511,470 45,683 Net cash provided by investing activities 47,725 3,111 368,224 92,410 511,470 36,437 Net change in cash and investments 183,601 (10,087) 972,582 259,698 1,405,794 791,491 CASH AND INVESTMENTS:

Beginning of year 922,092 10,087 7,624,367 566,325 9,122,871 720,311 End of year $ - 1,105,693 $ 8,596,949 $ $ 826,023 $ 10,528,665 $ 1,511,802 CASH AND CASH EQUIVALENTS:

Cash and investments $ - 1,105,693 $ 8,300,501 $ $ 826,023 $ 10,232,217 $ 1,441,565 Restricted cash and investments - - 296,448 - 296,448 70,237 Total cash and cash equivalents $ - 1,105,693 $ 8,596,949 $ $ 826,023 $ 10,528,665 $ 1,511,802 (Continued)
Proprietary Funds
City of Pacific Grove
Statement of Cash Flows
Business-Type Activities
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 40 PGCC 4-2-25

Governmental
Local Activities
Cemetery Water Sewer Golf Course Internal
Fund Project Fund Fund Fund Total Service Funds

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

Operating income (loss) $ 264,661 $ 1,807,286 (152,708) $ $ 339,430 $ 2,258,669 $ 626,321 Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation and amortization expenses 40,745 310,409 515,887 182,867 1,049,908 - Change in operating assets, liabilities, and deferred items:

Accounts receivable (234,505) - (654,429) (46,649) (935,583) 174,730 Prepaid items - - - - - 733,298
Loan receivable - - - - - -
Leases receivable - - - 350,079 350,079 178,917
Pension deferred outflows 99,913 - 432,841 - 532,754 1,207 OPEB deferred outflows 4,946 - 12,183 - 17,129 (10,291) Accounts payable (8,628) 241,951 543,024 (32,077) 744,270 - Payroll and related liabilities 13,407 - 4,471 - 17,878 (363,843) Claim payable - - - - - (425,484)
Net pension liability (237,603) - (1,029,344) - (1,266,947) (5,825) Total OPEB liability (23,879) - (58,824) - (82,703) (8,120) Compensated absences (12,965) - (11,163) - (24,128) -
Lease deferred inflows - - (360,588) - (360,588) (42,487) Pension deferred inflows (23,723) - (102,778) - (126,501) 4,633 OPEB deferred inflows 19,002 - 46,811 - 65,813 -
Total adjustments (128,785) 317,855 (301,321) 93,632 (18,619) 236,735 Net cash provided by operating activities $ 165,147 135,876 $ 1,505,965 $ 433,062 $ 2,240,050 $ 863,056 $ (Concluded)
Proprietary Funds
Business-Type Activities
For the Year Ended June 30, 2024
City of Pacific Grove
Statement of Cash Flows (Continued)
See accompanying Notes to the Basic Financial Statements. 41 PGCC 4-2-25

42 PGCC 4-2-25

43 City of Pacific Grove, California
Notes to the Basic Financial Statements
PGCC 4-2-25

44 PGCC 4-2-25

City of Pacific Grove
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
45 Page
Note 1 – Summary of Significant Accounting Policies ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 47 Note 2 – Cash and Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 57 Note 3 – Loans Receivable ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 61 Note 4 – Leases Receivable and Lease-Related Deferred Inflows of Resourcesꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 61 Note 5 – Interfund Transactionsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 63 Note 6 – Available For Sale Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 64 Note 7 – Capital Assetsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 65 Note 8 – Long-Term Debt ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 67 Note 9 – Compensated Absencesꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 70 Note 10 – Risk Managementꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 70 Note 11 – Defined Benefit Pension Plan ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 72 Note 12 – Other Post-Employment Benefits (OPEB)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 77 Note 13 – Commitments and Contingenciesꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 80 Note 14 – Stewardship, Compliance and Accountability ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 81 Note 15 – Net Investment in Capital Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 82 Note 16 – Changes to or within the Financial Reporting Entity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 82 PGCC 4-2-25

46 PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
47 Note 1 – Summary of Significant Accounting Policies
A. Description of the Reporting Entity
The basic financial statements of the City of Pacific Grove, California, (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant policies:

The City is primarily a residential community located at the tip of the Monterey Peninsula on the Central California coast. The community was founded as a Methodist Church summer retreat, and was incorporated as a city on July 16, 1889. It was granted a charter by the State on April 22, 1927. The City operates under a council-manager form of government. The seven-member City Council appoints a City manager, who is the administrative head of the municipal government. City amenities include a library, natural history museum, a community center, a youth center, a senior center, a golf course, a cemetery, sewer services, a monarch butterfly sanctuary and habitat preserve and general administration services.

As required by U.S. GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City Council acts as the governing board. In addition, the City staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize their legal separateness from the City. The City had no component units as of June 30, 2024.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government–Wide Financial Statements
The City Government–Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City, the primary government, accompanied by a total column. Fiduciary 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 liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
48 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government–Wide Financial Statements (Continued)
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 as prescribed by GASB Statement No. 34 in regard to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. 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
 Transfers in/out
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences between fund balance as presented in these statements to the net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures 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.

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.

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

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
49 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

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 in the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

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

C. Cash and Investments
The City pools its available cash for investment purposes. Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value.

U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

The three levels of the fair value measurement hierarchy are described below:

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

Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets and 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 and liabilities at the measurement date.

A statement of cash flows is presented for proprietary fund types. For purposes of reporting cash flows, the City considers all highly liquid investments with maturities of three months or less when purchased and cash and investments maintained in the City’s pool to be cash equivalents.

Disclosures for deposits and investment risks, as required and applicable, have been provided in Note 2:
 Interest Rate Risk
 Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
50 Note 1 – Summary of Significant Accounting Policies (Continued) D. Receivables
Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. The Sewer customers are billed every other month by a separate government agency which forwards the collections to the City. Revenues earned but not collected by year-end are accrued. No allowance for uncollectible accounts receivable has been provided as management has determined that uncollectible accounts have historically been immaterial and the direct write-off method does not result in a material difference from the allowance method.

E. Loans Receivable
Under the City’s housing assistance program, loans are made to qualified individuals and businesses within prescribed project areas for the purpose of housing acquisition, housing rehabilitation and/or economic development. The majority of these loans are on a deferred payback program. Repayments of the outstanding loans will be deducted from the loan receivable balance in the applicable funds. The City also offers Sewer Lateral Replacement Loans to homeowners. The disbursement of loans are recorded as addition of the loan receivable balance at the time of a loan and the repayment of principal will be added into loan receivable balance.

F. Prepaid Items
Prepaid items are payments made to vendors for services that will benefit periods beyond the fiscal year ended using purchase method.

G. Leases Receivable
The City is a lessor for leases of buildings and 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 receivable 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 the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses the average of the Local Agency Investment Fund (“LAIF”) rate and the incremental borrowing rate (IBR) provided by the City’s financial institution 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 lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
51 Note 1 – Summary of Significant Accounting Policies (Continued) H. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available.

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

Buildings and other improvements 100 years
Machinery and equipment 5 years
Infrastructure 10-50 years
In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34 which requires the inclusion of infrastructure capital assets in local governments’ basic financial statements. In accordance with GASB Statement No. 34, the City has included all infrastructure into the current Basic Financial Statements.

The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, storm drains, and park equipment. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

For all infrastructure systems, the City has elected to use the basic approach for infrastructure reporting.

I. Subscription-Based Information Technology Arrangements (SBITAs) The City has a policy to recognize a subscription liability and a right‐to‐use subscription asset (subscription asset) in the financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more with a subscription term greater than one year. Variable payments based on future performance of the City, usage of the underlying IT asset, or number of user seats are not included in the measurement of the subscription liability, rather, those variable payments are recognized as outflows of resources (expenses) in the period the obligation for those payments is incurred.

At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made.

Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, less any payments made to the SBITA vendor before the commencement of the subscription term, and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.
 Preliminary Project Stage: Outlays are expensed as incurred.  Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset.

Upon adoption, the City elected to exclude the capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage that were incurred prior to the implementation of this Statement in the measurement of subscription assets as of July 1, 2022.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
52 Note 1 – Summary of Significant Accounting Policies (Continued) I. Subscription-Based Information Technology Arrangements (SBITAs) (Continued) Subscription assets are reported within capital assets and subscription liabilities are reported with long-term liabilities on the statement of net position. Subscription assets are amortized using the straight-line method over the shorter of the subscription term or the useful life of the underlying IT asset, unless the subscription contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the subscription asset is amortized over the useful life of the underlying IT asset.

Key estimates and judgments related to SBITA include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.  The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITA.
 The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

J. Compensated Absences
Compensated absences comprise of unpaid vacation and the vested portion of sick leave, which are accrued as earned. The City's liability for the compensated absences is recorded in various Governmental funds or Proprietary funds as appropriate. The liability for compensated absence is determined annually. For all governmental funds, amounts expected to be paid out of current financial resources are recorded in fund liabilities. The long-term portion is recorded in the Statement of Net Position and represents a reconciling item between the fund and governmentwide presentations.

K. Pension
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance 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 liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and inflows of sources related to pensions and are to be recognized in further pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over five years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
53 Note 1 – Summary of Significant Accounting Policies (Continued) L. Other Postemployment Benefits Liability (OPEB)
For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense, information about the City's OPEB plan have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

OPEB
Valuation Date June 30, 2023
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
M. Deferred Outflows/Inflows of Resources
The statement of financial net position and balance sheet-governmental funds reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent outflows of resources represent a consumption of net assets that applies to future periods, therefore, will not be recognized as an expense until that time. The City reports pension contributions after the measurement date and deferred losses related to pensions and OPEB in this category.

Deferred Inflows of Resources represent inflows of resources represent an acquisition of net assets that applies to future periods, and that, therefore, are not recognized as revenue until that time. The City reports lease related inflows, unavailable revenues and deferred gains related to pensions and OPEB in this category.

N. Long-Term Obligations
In the Government-Wide Financial Statements, the long-term obligations are reported as liabilities in the appropriate funds. The Fund Financial Statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

O. Net Position
In governmental-wide and proprietary fund financial statements, net positions are categorized as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation/amortization, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and retention payable.

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

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

When expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first, then unrestricted net position as they are needed.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
54 Note 1 – Summary of Significant Accounting Policies (Continued) P. Fund Balance
In the Fund Financial Statements, fund balances are in classifications that comprise a hierarchy based primarily on the extent to which government is bound to observe constraints imposed upon the use of resources reported in the governmental funds. Fund balances are classified in the following categories:

Nonspendable – Items that cannot be spent because they are not in spendable form, such as prepaid items, inventories, and loans receivable, items that are legally or contractually required 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 through resolutions and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City.

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. The City Council has by resolution authorized the City Manager to assign fund balance. The City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriation in the subsequent year’s appropriated budget.

Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories.

The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental fund other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balance first. Further, when the components of unrestricted fund balance can be used for the same purpose, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned. The description of each fund balance category is listed in the City’s adopted Governmental Fund Balance Policy.

Q. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
55 Note 1 – Summary of Significant Accounting Policies (Continued) R. Property Taxes
County tax assessments include secured and unsecured property taxes and special assessments. "Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the property being taxed.

Monterey County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is January 1 of each year.

Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year end. Property tax on the unsecured roll are due on the January 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual.

The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00 per $100 of full cash value.

S. Budgetary Information
In accordance with applicable sections of the California Government Code and the Pacific Grove Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds.

Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during May of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.

All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered.

T. Encumbrances
Under encumbrance accounting, purchase orders, contract and other commitments for expenditures are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all funds. All appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re-appropriated and become part of the subsequent year’s budget pursuant to state regulations.

U. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental fund financial statements, receivables associated with non- exchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unavailable revenue.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
56 Note 1 – Summary of Significant Accounting Policies (Continued) V. Interfund Balances
Advances to and advances from other funds represent interfund loans in the fund financial statements. Advances between funds are offset by a fund balance reservation or by unearned revenue in the applicable governmental funds to indicate that they are not available financial resources. Any unpaid interest due to lack of funds in the borrowing fund increases the principal owed and is reported in the lending fund as unearned revenue. All other outstanding balances between funds are reported as due to and due from other funds. These are generally repaid within the following fiscal year. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” W. Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, and death or in an emergency as defined by the Plan. The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries.

Since the assets held under these plans are not the City's property and are not subject to City control, they have been excluded from these financial statements.

X. Implementation of New GASB Pronouncements
GASB Statement No. 100 - In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Implementation of this Statement had a moderate effect on the City’s financial statements for the fiscal year ended June 30, 2024.

Y. New GASB Pronouncements
The City is currently evaluating its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:
 In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.  In December 2023, GASB issued Statement 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. That objective is achieved by requiring governments to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact.

The statement also requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. Application of this statement is effective for the City’s fiscal year ending June 30, 2025. Earlier application is encouraged.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
57 Note 1 – Summary of Significant Accounting Policies (Continued) Y. New GASB Pronouncements (Continued)
 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.  In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible rightto-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 those three types to be disclosed separately 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 City maintains a cash and investment pool for all funds. Certain restricted funds, which are held and invested by independent outside custodians through contractual agreements, are not pooled. These restricted funds are reported as cash with fiscal agents.

The following is a summary of pooled cash and investments at June 30, 2024:

Governmental Business-Type
Activities Activities Total
Cash and investments 27,411,424 $ $ 10,232,217 $ 37,643,641 Restricted cash and investments 70,237 296,448 366,685
Total cash and investments $ 27,481,661 $ 10,528,665 $ 38,010,326 Government-Wide Financial Statement
Cash and investments as of June 30, 2024, consist of the following:

Cash:

Petty cash 685 $
Demand deposits 1,766,684
Total cash and cash equivalents 1,767,369
Investments:

U.S. Treasury Notes 957,708
U.S. Government Bonds 4,162,451
Certificates of Deposit 11,822,159
Money Market Mutual Funds 10,749,138
Local Agency Investment Fund 8,551,501
Total investments 36,242,957
Total cash and investments $ 38,010,326
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
58 Note 2 – Cash and Investments (Continued)
A. Deposits
At June 30, 2024, the carrying amount of the City’s deposits was $1,766,684 and the bank balance was $2,539,490.

The total bank balance was covered by federal depository insurance or by collateral held by the City’s agent in the City’s name.

All pooled certificates of deposit and bank balances are entirely insured or collateralized. The California Government Code requires California banks and savings and loan associations to secure an agency’s deposits by pledging government securities as collateral. The fair value of the pledged securities must equal at least 110% of an agency’s deposits. California law also allows financial institutions to secure local agency deposits by pledging first trust deed mortgage notes having a value of 150% of a local agency’s deposits. The City may waive collateral requirements for deposits which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC).

B. Authorized Investments
Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:
• Certificates of Deposit - Non-Negotiable Certificates of Deposits will be made only in FDIC or FSLIC insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with Government Code 53652 and/or 53651 (m) (1). Investment in these instruments shall be limited to financial institutions that in the Treasurer’s judgment are of high quality, and shall not have a term exceeding five years from the date of purchase.
• Securities of the U.S. Government or its Agencies - Includes obligations issued by Federal Home Loan Banks, Government National Mortgage Association, Farm Credit System, the Federal Home Loan Bank, Federal Home Loan Mortgage Association, Federal National Mortgage Association, or obligations or other instruments of or issued by a federal agency or a United States Government sponsored enterprise. Investment in these instruments shall not have a term exceeding five years from the date of purchase. • Treasury Bills and Notes - U.S. Treasury Bills, Notes, Bonds, or Certificates of Indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest. The term of such securities shall not exceed five years from the date of purchase. • Local Agency Investment Fund (LAIF) - Investment of funds in the California LAIF which allows the State Treasurer to invest through the Pooled Money Investment Account (PMIA). Maximum investment is subject to state regulation. LAIF investments are available for City use. • Repurchase Agreements - A purchase of securities by the City pursuant to an agreement by which the seller will repurchase such securities on or before a specified date, or on demand of either party, and for a specified amount.

Investments in repurchase agreements will be used solely as short-term investments not to exceed 30 days. • Other - Other investments that are, or may become, legal investments through the State of California Government Code, only with prior approval of the City Council.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
59 Note 2 – Cash and Investments (Continued)
C. Investments Authorized by Debt Agreement
Investments held by bond fiscal agents (trustees) are governed by the provisions of the underlying indenture agreements rather than the general provisions of the City’s investment policy or California Government Code.

The indenture agreements do identify the following permitted investments:

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio * One Issuer U.S. Treasury Obligations None None None
U.S. 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 None None None
Certificates of Deposits 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund N/A None None
Municipal Bonds None None None
D. Investment 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 $8,551,501 invested in LAIF.

LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

E. Risks Disclosures
Interest Rate Risk: As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy provides that final maturities of securities cannot exceed five years. Specific maturities of investments depend on liquidity needs. At June 30, 2024, the City’s investments had the following maturities:

Investment Type Total Less Than 1 Year 1 to 2 Years 2 to 5 Years U.S. Treasury Notes $ 957,708 $ - $ 490,130 $ 467,578
U.S. Government Bonds 4,162,451 - 4,162,451 -
Certificates of Deposit 11,822,159 248,781 3,192,446 8,380,932 Money Market Mutual Funds 10,749,138 10,749,138 - -
Local Agency Investment Fund 8,551,501 8,551,501 - -
Total $ 36,242,957 $ 19,549,420 $ 3,682,576 $ 13,010,961 Investment Maturities (in Years)
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
60 Note 2 – Cash and Investments (Continued)
E. Risks Disclosures (Continued)
Credit Risk: Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, the City's investment policy, or debt agreements, and the actual Moody’s rating as of year-end for each investment type.

Minimum
Investment Type Total Legal Rating
U.S. Treasury Notes 957,708 $ AA/AAA
U.S. Government Bonds 4,162,451 AA/AAA
Certificates of Deposit 11,822,159 Not Rated
Money Market Mutual Funds 10,749,138 Not Rated
Local Agency Investment Fund 8,551,501 Not Rated
Total $ 36,242,957
Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

F. Investment Valuation
At June 30, 2024, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2024:

Investment Type Level 1 Level 2 Uncategorized Total
U.S. Treasury Notes $ 957,708 $ - $ - $ 957,708
U.S. Government Bonds - 4,162,451 - 4,162,451
Certificates of Deposit - 11,822,159 - 11,822,159
Money Market Mutual Funds - - 10,749,138 10,749,138
Local Agency Investment Fund - - 8,551,501 8,551,501
Total $ 957,708 $ 15,984,610 $ 19,300,639 $ 36,242,957
Measurement Input
Federal Agency Securities and corporate bonds categorized as Level 2 are valued based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
61 Note 3 – Loans Receivable
Housing Assistance Loans
The City engages in programs designed to encourage construction or improvement in low-to-moderate income housing.

Under these programs, loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City's terms. Terms include interest rates of three to five percent and deferral of principal and interest payment until the property changes hands. All loans are secured by a deed of trust on the property. The balance of the loans receivable arising from these programs was $1,131,177 as of June 30, 2024.

Sewer Lateral Replacement Loans
The City has a Sewer Lateral Repair/Replacement Loan Program to improve sewer lateral lines connected to homeowners' residences. These loans carry an interest rate of three percent per annum. Repayment on loan principal and interest are deferred until the property is sold. All loans are secured by a deed of trust on the property. The balance of these loans receivables from this program was $40,513 as of June 30, 2024.

Note 4 – Leases Receivable and Lease-Related Deferred Inflows of Resources The City leases various types of property including land and buildings. Leases receivable consist of agreements with other entities for the “right–to–use” the underlying assets at various locations owned by the City. The remaining terms of the agreements range from 1 to 30 years. The interest rates used calculated the net present value of the lease receivable ranged is 3%.

For the fiscal year ended June 30, 2024, the City recognized $421,117 in lease revenue and $99,334 in interest revenue, and the outstanding net present value of the lease receivable amounts are $1,490,488 and $1,693,882 for governmental and business-type activities, respectively.

A. Governmental Activities
At June 30, 2024, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2025 $ 61,719 $ 37,075 $ 98,794
2026 29,616 35,691 65,307
2027 21,237 35,118 56,355
2028 22,651 34,538 57,189
2029 26,149 33,898 60,047
2030 - 2034 158,959 158,094 317,053
2035 - 2039 222,952 134,076 357,028
2040 - 2044 303,984 101,681 405,665
2045 - 2049 406,404 58,835 465,239
2050 - 2053 236,817 12,336 249,153
Total $ 1,490,488 $ 641,342 $ 2,131,830
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
62 Note 4 – Leases Receivable and Lease-Related Deferred Inflows of Resources (Continued) A. Governmental Activities (Continued)
At June 30, 2024, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30,
2025 91,192 $
2026 51,987
2027 48,423
2028 48,423
2029 48,423
2030-2034 242,116
2035-2039 242,116
2040-2044 242,116
2045-2049 242,116
2050 - 2053 130,117
Total $ 1,387,028
B. Business-Type Activities
At June 30, 2024, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2025 $ 366,388 $ 49,858 $ 416,246
2026 327,151 39,289 366,440
2027 318,740 30,010 348,750
2028 333,302 20,448 353,750
2029 348,301 10,449 358,750
Total $ 1,693,882 $ 150,054 $ 1,843,936
At June 30, 2024, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30,
2025 $ 360,589
2026 313,345
2027 289,724
2028 289,724
2029 289,724
2030 72,431
Total $ 1,615,537
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
63 Note 5 – Interfund Transactions
A. Due From and To Other Funds
At June 30, 2024, the City has the following due from and to other funds:

Due From Other Funds
Due To Other Funds General Fund
Governmental Funds:

Local Water Project Fund 28,103 $
RSTP Fund 290,809
Nonmajor Governmental Funds 42,646
Total $ 361,558
These interfund balances represent routine short-term cash flow assistance.

B. Advances From and To Other Funds
As of June 30, 2024, advances to and from other funds consisted of the following:

Advances to Other Funds
Advances from Other Funds Sewer Fund
Local Water Project Fund $ 350,000
C. Transfers In and Out
During the year ended June 30, 2024, the City had the following transfers in and transfers out:

Capital Local Water
General Improvements Nonmajor Project
Transfers Out Fund Fund Governmental Fund Total
Governmental Funds:

General Fund $ 1,010 $ 750,000 $ 314,000 $ 187,500 $ 1,252,510 Nonmajor Governmental Funds 2,349 - 8,000 - 10,349
Total $ 3,359 $ 750,000 $ 322,000 $ 187,500 $ 1,262,859 Transfers In
Governmental Funds Enterprise Funds
The significant transfers are as follows:

The $750,000 transfer from the General Fund to Capital Improvement Fund was for approved capital projects and funding for future projects.

The $187,500 transfers from the General fund to Local Water Project Fund was to support interfund debt repayment.

The $314,000 transfers from the General fund to Nonmajor Governmental Fund was to support 911 services paid to Monterey County.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
64 Note 6 – Available For Sale Assets
The Pacific Grove Local Water Project (PGLWP) began producing recycled water in January 2018. The PGLWP treats wastewater from surrounding homes and businesses; and produces non-potable water to primarily irrigate the City's golf course and cemetery. This new, alternative water source reduced the City's demand for potable water from the California American Water Company (Cal-Am). On January 27, 2016, the Monterey Peninsula Water Management District (MPWMD) approved Ordinance No. 168 to establish the City's water entitlement of 47.88 acre/ft based on the potable water saved by the project. On May 15, 2019, the City adopted Resolution 19-014 to direct the City Manager to sell the 47.88 AF of water entitlements; and reserve 11.5 AF of the entitlement amount for affordable housing. This resolution also authorized a 30% discount to the water entitlement price shown on the City's Master Fee Schedule through June 30, 2024.

The water entitlements were shown on the fee schedule at $250,000 per AF or $25,000 for 0.10 AF. This rate was established based on a local market comparison. When the 30% discount is applied to the stated fee, the amount is reduced to $175,000 an acre foot or $17,500 for 0.10 AF. The total value of these assets at the 30% discount was $8,380,400; and was recorded as an intangible asset in the Governmental Activities section of the Statement of Net Position. In Fiscal Year 2020, the City sold approximately 1.26 AF of water entitlements at a value of $221,201. In Fiscal Year 2021, the City sold approximately 1.78 AF of water entitlements at a value of $312,798. In Fiscal Year 2022, the City sold approximately 3.29 AF of water entitlements at a value of $577,840. In Fiscal Year 2023, the City sold approximately 2.53 AF of water entitlements at a value of $443,475. In Fiscal Year 2024, the City sold approximately

3.31 AF of water entitlements at a value of $579,659 which was reported in the General Fund as other revenue. The remaining value of the water entitlements reported in the government-wide statement of net position as available for sale assets at June 30, 2024 was $6,245,427. These assets are not used to provide services and therefore are not capital in nature.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
65 Note 7 – Capital Assets
Summary of changes of capital assets for governmental activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated:

Land $ 2,338,270 $ - $ - $ 2,338,270 - $
Construction in progress 5,603,986 1,005,803 (1,085,150) - 5,524,639 Total capital assets, not being depreciated 7,942,256 1,005,803 - (1,085,150) 7,862,909 Capital assets, being depreciated:

Buildings/structures and improvements 18,230,631 94,293 - 18,324,924 - Infrastructure: 39,467,060 1,142,285 1,085,150 - 41,694,495 Machinery and equipment 5,051,925 272,379 (6,400) 5,317,904 - Total capital assets, being depreciated 62,749,616 1,508,957 1,085,150 (6,400) 65,337,323 Less accumulated depreciation:

Buildings/structures and improvements (9,389,597) (486,862) - (9,876,459) - Infrastructure: (14,775,801) (1,008,393) - (15,784,194) - Machinery and equipment (4,252,957) (181,454) - (4,434,411) - Total accumulated depreciation (28,418,355) (1,676,709) - (30,095,064) - Total capital assets, being depreciated, net 34,331,261 (167,752) 1,085,150 (6,400) 35,242,259 Subscription assets, being amortized 544,544 20,846 (39,640) 525,750 - Less: accumulated amortization (114,947) (152,307) 39,640 (227,614) - Total subscription assets, net 429,597 (131,461) - 298,136 - Governmental activities capital assets, net $ 42,703,114 $ 706,590 $ (6,400) $ 43,403,304 - $ Depreciation/amortization expense was charged to the various governmental activities as follows:

Depreciation Amortization
General government 338,695 $ 30,766 $
Public safety 781,346 70,974
Public works 247,147 22,450
Recreation 66,733 6,062
Library 62,877 5,712
Museum 19,282 1,752
Community development 160,629 14,591
Total depreciation/amortization expense $ 1,676,709 $ 152,307 PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
66 Note 7 – Capital Assets (Continued)
Summary of changes of capital assets for business-type activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated:

Land $ 362,973 $ - $ - $ 362,973 - $
Construction in progress 436,247 880,638 - (333,471) 983,414 Total capital assets, not being depreciated 799,220 880,638 - (333,471) 1,346,387 Capital assets, being depreciated:

Buildings and improvements 10,160,437 - - 10,160,437 -
Infrastructure/sewer 29,251,709 121,643 - 333,471 29,706,823 Machinery and equipment 1,477,671 - - 1,477,671 -
Total capital assets, being depreciated 40,889,817 121,643 - 333,471 41,344,931 Less accumulated depreciation:

Buildings and improvements (5,346,586) (205,559) - (5,552,145) - Infrastructure/sewer (6,792,888) (778,742) - (7,571,630) - Machinery and equipment (1,017,866) (65,607) - (1,083,473) - Total accumulated depreciation (13,157,340) (1,049,908) - (14,207,248) - Total capital assets, being depreciated, net 27,732,477 (928,265) - 333,471 27,137,683 Total capital assets, being depreciated, net 27,732,477 (928,265) - 333,471 27,137,683 Business-type activities capital assets, net $ 28,531,697 $ (47,627) $ - $ 28,484,070 - $ Depreciation expense was charged to the business-type activities as follows:

Depreciation
$ 40,745
310,409
515,887
Cemetery
Local Water Project
Sewer
Golf Course 182,867
Total depreciation expense $ 1,049,908
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
67 Note 8 – Long-Term Debt
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities 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 Publicly Offered:

Taxable Pension Obligation Bonds 2,671,688 $ $ (478,599) - $ $ 2,193,089 $ 464,276 $ 1,728,813 Accreted Interest 4,731,877 459,626 (926,401) 4,265,102 985,725 3,279,377 Subtotal 7,403,565 459,626 (1,405,000) 6,458,191 1,450,001 5,008,190 Direct Borrowing:

PG&E Loan 51,451 - (20,048) 31,403 12,562 18,841
SBITA Liability 317,788 20,846 (137,896) 200,738 105,745 94,993 Total $ 7,772,804 $ 480,472 $ (1,562,944) $ 6,690,332 $ 1,568,308 $ 5,122,024 Taxable Pension Obligation Bonds
On June 1, 2006, the City issued Taxable Pension Obligation Bonds in the principal amount of $19,365,355. The bonds were part of the California Statewide Communities Development Authority Taxable Pension Obligation Bonds Program. The purpose of the bonds are to provide monies to meet the unfunded accrued actuarial liability ("UAAL") to the California Public Employee's Retirement System ("PERS"). Semi-annual payments are due on June 1 and December 1. Interest on the bonds ranges from 5.67% to 6.12% and will mature on June 1, 2029.

The annual debt service requirements were as follows for the Pension Obligation Bonds:

Fiscal Year Principal Interest Total
2025 $ 464,276 $ 985,724 $ 1,450,000
2026 451,350 1,048,650 1,500,000
2027 437,699 1,107,301 1,545,000
2028 425,418 1,169,582 1,595,000
2029 414,346 1,235,652 1,649,998
Total $ 2,193,089 $ 5,546,909 $ 7,739,998
PG&E Loan
The City benefited from the on-bill financing program offered by PG&E, which is a non-interest bearing, reimbursement basis loan to install energy-efficient equipment. Individual PG & E loans have been issued for various City locations. All loans mature beginning on February 15, 2022 and conclude on December 15, 2026.

The original loan was $152,900 with future debt service payments as follows:

Fiscal Year Principal Total
2025 12,562 $ $ 12,562
2026 12,562 12,562
2027 6,279 6,279
Total $ 31,403 $ 31,403
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
68 Note 8 – Long-Term Debt (Continued)
A. Governmental Activities(Continued)
Subscription Payable
The City entered into subscription agreements with various vendors for software. The terms of the agreements are ranging from 24 months to 130 months. The calculated interest rates range from 1.85% to 3.25%. As of June 30, 2024, the capitalized right-to-use assets related to SBITAs were $298,136 and the total subscription liability was $200,738, of which $105,745 is reported as a current liability representing the amount due within the next fiscal year.

The future subscription payments are as follows:

Fiscal Year Principal Interest Total
2025 $ 105,745 $ 7,185 $ 112,930
2026 18,843 4,481 23,324
2027 12,117 9,540 21,657
2028 12,341 7,255 19,596
2029 12,570 5,130 17,700
2030-2032 39,122 4,164 43,286
Total $ 200,738 $ 37,755 $ 238,493
B. Business-Type Activities
A summary of changes in long-term liabilities for business-type activities 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 Publicly Offered:
2013 Wastewater Revenue
Refunding Bond $ 639,629 $ (65,925) - $ $ 573,704 $ 70,044 $ 503,660 Direct Borrowing:

Clean Water Revolving Fund Loan 4,546,643 (160,982) - 4,385,661 162,592 4,223,069 2014 Golf Course Site Lease 1,725,451 (199,183) - 1,526,268 207,941 1,318,327 Total $ 6,911,723 $ (426,090) - $ $ 6,485,633 $ 440,577 $ 6,045,056 Clean Water State Revolving Fund Loan
In November 2015, the City secured State Water Resources Control Board ("SWRCB") funding for the construction of a recycled water treatment plant, sewer diversion structure, waste pump and force main station, user connections and site retrofits. The SWRCB reimbursed the City for project-related expenditures, as incurred, totaling $5,328,076. The loan will be repaid with interest at 1% per annum. The loan matures on February 1, 2048.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
69 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
Clean Water State Revolving Fund Loan (Continued)
The annual debt service requirements were as follows for the Clean Water State Revolving Fund Loan:

Fiscal Year Principal Interest Total
2025 $ 162,592 $ 43,857 $ 206,449
2026 164,218 42,231 206,449
2027 165,860 40,589 206,449
2028 167,518 38,930 206,448
2029 169,194 37,255 206,449
2030-2034 871,686 160,554 1,032,240
2035-2039 916,152 116,089 1,032,241
2040-2044 962,887 69,356 1,032,243
2045-2048 805,554 20,239 825,793
Total $ 4,385,661 $ 569,100 $ 4,954,761
2014 Golf Course Site Lease
The City entered into a $3,130,505 Site Lease dated September 1, 2014 with Umpqua Bank to Refund the 2014 Golf Course Certificate of Participation. The lease bears interest at 4.35% with debt service payments due on February 1st and August 1st through 2030. The lease is secured by the transfer of property rights to Umpqua Bank.

The annual debt service requirements were as follows for the 2014 Golf Course Site Lease:

Fiscal Year Principal Interest Total
2025 $ 207,941 $ 64,156 $ 272,097
2026 217,085 55,012 272,097
2027 226,631 45,466 272,097
2028 236,597 35,500 272,097
2029 247,000 25,096 272,096
2030-2031 391,014 17,131 408,145
Total $ 1,526,268 $ 242,361 $ 1,768,629
2013 Wastewater Revenue Refunding Bond
On May 6, 2013, the City issued the 2013 Wastewater Revenue Refunding Bonds in the principal amount of $1,220,588. The purpose of the bond is to refinance the California State Community Development Authority Series 2001B Revenue Bonds. Semi-annual interest payments are due on April 1 and October Repayments are secured by future sewer service revenues. Interest on the bonds is 3.35% and matures on October 1, 2031.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
70 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
2013 Wastewater Revenue Refunding Bond (Continued)
The annual debt service requirements were as follows for the 2013 Wastewater Revenue Refunding Bond:

Fiscal Year Principal Interest Total
2025 $ 70,044 $ 18,645 $ 88,689
2026 71,550 16,264 87,814
2027 72,937 13,876 86,813
2028 76,789 11,400 88,189
2029 78,018 8,795 86,813
2029-2032 204,366 10,418 214,784
Total $ 573,704 $ 79,398 $ 653,102
Note 9 – Compensated Absences
The changes in compensated absences of governmental and business-type activities for the year ended June 30, 2024 are as follows:

Balance Balance Due Within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Governmental activities 1,334,882 $ $ 1,063,224 $ (1,199,053) $ 1,199,053 $ 299,763 $ 899,290 Business-type activities 184,709 136,453 (160,581) 160,581 40,146 120,435 Classification
Note 10 – Risk Management
Risk Pool Membership
The City is a member of the California Joint Powers Insurance Authority (the “Authority”). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The Authority arranges and administers programs for the pooling of self-insured losses, purchases excess insurance and reinsurance, and arranges for group purchased insurance for property and other lines of coverage.

The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Authority’s Board of Directors. The Board operates through a nine-member Executive Committee.

Excess Liability Program
Liability coverage includes auto liability, employment practices liability, public officials’ errors and omissions, bodily injury, personal injury, third party property damage, advertising injury, and employee benefit administration liability.

The City has a retained limit of $150,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. The coverage structure is composed of a combination of pooled selfinsurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
71 Note 10 – Risk Management (Continued)
Excess Workers’ Compensation Program
The City has a retained limit of $150,000 per occurrence for workers’ compensation claims. The Authority’s pooled retention is $1 million per occurrence with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

Estimated reserves for all claims are recorded in internal service funds. No claim settlement has exceeded the coverage amounts in place for any of the years shown. The amount of claims due in one year from June 30, 2024, is estimated to total $156,505.

Purchased Insurance
The City also participates in the following coverage programs provided by the Authority:

All-Risk Property Protection Program. This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the Authority.

The total insured value of scheduled City property is $87,706,300. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Pollution Legal Liability Insurance Program. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Crime Insurance Program. Formerly called Blanket Fidelity Bond, this policy covers faithful performance, depositor’s forgery, theft of money and securities, and computer fraud related to the transfer of money. The policy limit is $1,000,000, and the deductible is $2,500.

Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage during the fiscal year ended June 30, 2024.

Changes in the balances of the City’s claims liabilities during the years ended June 30, 2024, 2023, and 2022 were as follows:

Expenses and
Beginning Changes in Claims Ending Due within Due in more Balance Estimates Payments Balance One Year than One Year 2021-2022 $ 762,850 $ 236,367 $ (289,406) $ 709,811 $ 236,367 $ 473,444 2022-2023 709,811 378,974 (250,511) 838,274 267,243 681,769 2023-2024 838,274 198,076 (561,919) 474,431 156,505 317,926 PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
72 Note 11 – Defined Benefit Pension Plan
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous and Safety Employee Pension Plans (the Plans); cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS’ audited financial statements are publicly available reports that can be obtained at the CalPERS website under Forms and Publications.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. The cost-of-living adjustments for the Plans are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect as of the June 30, 2023 measurement date, are summarized as follows:

Tier 1 PEPRA Tier 1 PEPRA
Hire date Before 1/1/2013 1/1/2013 Before 1/1/2013 1/1/2013 Benefit formula 2% @ 55 2% @ 62 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 55 62 50 50
Benefit per year of service, as a percentage of salary 2.0% to 2.5% 2.0% 3.0% 2.0% to 2.7% Employer Contribution Rate 12.47% 7.68% 27.11% 13.54%
Employee Contribution Rate 7.00% 6.75% 9.00% 13.00%
Miscellaneous Safety
Employees Covered
As of the June 30, 2023, the measurement date, the following employees were covered by the benefit terms for the Plan:

Miscellaneous Safety Total
Active employees 67 22 89
Transferred and terminated employees 101 32 133
Retired Employees and Beneficiaries 155 117 272
Total 323 171 494
Plans
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
73 Note 11 – Defined Benefit Pension Plan (Continued)
A. General Information about the Pension Plan (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2024, the employer contributions for the miscellaneous plan and the safety plan, were in amounts of $1,936,437 and $2,946,588, respectively.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2023, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plans as of June 30, 2023 and 2022 was as follows:

Miscellaneous Plan Safety Plan Total
June 30, 2022 0.179512% 0.273228% 0.452740%
June 30, 2023 0.175349% 0.265691% 0.441040%
Change - Increase (Decrease) -0.004163% -0.007537% -0.011700% Actuarial Methods and Assumption Used to Determine Total Pension Liability The June 30, 2022 valuation was rolled forward to determine the June 30, 2023, measurement date total pension liability, based on following actuarial methods and assumptions:

Actuarial Cost Method
Amortization method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Remaining Amortization Periods
Mortality
Post-retirement benefit increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
Entry Age Normal

6.90%

2.30%
Varies by category, entry age, and service
Differs by employer rate plan but not more than 28 years Derived using CalPERS’ Membership Data for all Funds. The mortality table was developed based on CalPERS-specific data.

The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries.

Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
74 Note 11 – Defined Benefit Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of 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, CalPERS took into account both short-term and long term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses and are summarized as follows:

Asset Class
Assumed Asset
Allocation
Real Return
Years 1 - 101,2
Global Equity - Cap-weighted 30.00% 4.54%
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%
100.00%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-22 Asset Liability Management study.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
75 Note 11 – Defined Benefit Pension Plan (Continued)
C. Changes in the Net Pension Liability
Proportionate Share of Net Pension Liability and Pension Expense The following table shows the City’s Miscellaneous and Safety Plan’s proportionate share of the risk pool collective net pension liability over the measure period.

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 (Valuation Date) $ 64,446,220 $ 43,711,078 $ 20,735,142 Balance at June 30, 2023 (Measurement Date) 66,781,879 44,906,337 21,875,542 Net Changes during 2022-2023 2,335,659 1,195,259 1,140,400 Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability (asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 (Valuation Date) $ 83,282,066 $ 51,722,014 $ 31,560,052 Balance at June 30, 2023 (Measurement Date) 85,890,366 52,744,213 33,146,153 Net Changes during 2022-2023 2,608,300 1,022,199 1,586,101 Increase (Decrease)
Miscellaneous Plan
Safety Plan
Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool.
(1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2022). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2022). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2022 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2021-2022).
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of market value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
76 Note 11 – Defined Benefit Pension Plan (Continued)
C. Changes in the Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the plans as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.9%) Rate (6.9%) (7.9%)
Miscellaneous Plan 30,907,507 $ $ 21,875,542 $ 14,441,459 Safety Plan $ 44,928,783 $ 33,146,153 $ 23,513,015
Plan's Net Pension Liability (asset)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Pension Expenses and Deferred Outflows and Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City recognized pension expense of $2,469,207 and $3,741,381, for the Miscellaneous and Safety plans, respectively. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the pension plan from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Pension contribution made after measurement date 1,936,437 $ $ - Changes of assumptions 1,320,725 -
Difference between expected and actual experience 1,117,521 (173,354) Net difference between projected and actual earning on
pension plan investments 3,541,847 -
Adjustment due to differences in proportions (1,021,296) - Difference between City contributions and
proportionate share of contributions 45,737 (330,448)
Total $ 7,962,267 $ (1,525,098)
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contribution made after measurement date $ 2,946,588 $ - Changes of assumptions 1,934,454 -
Difference between expected and actual experience 2,433,539 (208,337) Difference between projected and actual earnings on
pension plan investments 4,536,042 -
Adjustment due to differences in proportions - (475,700) Difference between City contributions and
proportionate share of contributions 575,527 (589,022)
Total $ 12,426,150 $ (1,273,059)
Miscellaneous Plan
Safety Plan
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
77 Note 11 – Defined Benefit Pension Plan (Continued)
D. Pension Expenses and Deferred Outflows and Inflows of Resources Related to Pensions (Continued) The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the miscellaneous and the safety risk pool for the 2022-23 measurement period is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired).

The City reported $1,936,437 and 2,946,588 for the Miscellaneous and Safety Plans, respectively, reported as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows/ Deferred Outflows/
Year (Inflows) of Resources (Inflows) of Resources
Ended June 30 Miscellaneous Plan Safety Plan
2025 1,119,903 $ $ 2,346,829
2026 866,972 1,747,923
2027 2,412,226 3,985,142
2028 101,631 126,609
2029 - -
Thereafter - -
$ 4,500,732 $ 8,206,503
Note 12 – Other Post-Employment Benefits (OPEB)
A. General Information about the OPEB Plan
Plan Description
The City of Pacific Grove Retiree Healthcare Plan (Plan) is a single employer defined benefit healthcare plan administered by the City. The City contributes the minimum amount provided under Government Code Section 22825 of the Public Employees Medical and Hospital Care Act (PEMHCA) for medical benefits. All employees become eligible for postretirement medical benefits after five years of employment, meet qualifications for CalPERS retirement, and reach the age of 50. This lifetime benefit is available to all employees and their surviving spouses who elect to buy insurance through any of the available CalPERS medical plans. Retirees must contribute any premium amounts in excess of the City contribution amounts.

The City’s previous employee agreements contained a provision to also pay an additional $150 per month for the first five years after retirement, or until age 65 or date of death, whichever was sooner. Police officers were required to have 20 years of service to receive the five-year benefit. The additional $150 monthly retirement benefit was terminated for all employees, with the exception of miscellaneous employees who retired prior to January 1, 2017; and Safety employees who retired prior to July 1, 2018.

The City does not currently contribute to an OPEB Trust PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
78 Note 12 – Other Post-Employment Benefits (OPEB) (Continued) A. General Information about the OPEB Plan (Continued)
Employees Covered
At June 30, 2023 (the valuation date), the most recent valuation date, the following current and former employees were covered by the benefit terms under the Plan:

Inactives currently receiving benefits 56
Inactives entitled to benefit payments 74
Active employees 89
Total 219
Contributions
The City makes contributions based on a pay-as-you go basis as approved by the authority of the City’s Board.

Total benefit payments included in the measurement period were $188,543, while actual contributions for the fiscal year were $188,543. Employees are not required to contribute to the plan. There have been no assets accumulated in a trust to provide for the benefits of this plan.

B. Total OPEB Liability
Significant Actuarial Assumptions Used for Total OPEB Liability (Asset) The following summarized the actuarial assumptions for the OPEB plan included in this fiscal year:

Actuarial Cost Method
Amortization Period: 20 years
Asset Valuation Method:

Actuarial Assumptions:

Actuarial Valuation Date June 30, 2023
Discount Rate 3.65%
Inflation
Salary Increases
Medical Trend
PEMHCA Minimum Increase
Healthcare Participation at Retirement
Notes:

Discount rate increased from 3.54% to 3.65%.

Entry-Age Level Percent of Pay

2.50%
Level percentage of payroll, closed

2.75%
Actives - 60%
Retirees - 100% if covered, 0% if waived

3.50% annually
Non-Medicare - 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076.

Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076 Discount Rate
The discount rate was based on the Bond Buyer 20-bond General Obligation Index.

Change of Assumptions
Discount rate was updated based on municipal bond rate as of the measurement date. The medical trend, and PEMHCA minimum trend were updated.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
79 Note 12 – Other Post-Employment Benefits (OPEB) (Continued) B. Total OPEB Liability (Continued)
Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2023 (measurement date) and was determined by an actuarial valuation as of June 30, 2023 (valuation date) for the fiscal year ended June 30, 2024 (reporting date).

Changes in the Total OPEB Liability
The following summarizes the changes in the total OPEB liability during the year ended June 30, 2024:

Total OPEB
Liability
Balance at June 30, 2023 $ 4,305,622
Changes recognized for the measurement period:

Service Cost 215,865
Interest on the total pension liability 156,724
Differences between expected and actual experience (1,085,337) Changes in assumptions (214,044)
Benefits payments (188,543)
Net changes during July 1, 2023 to June 30, 2024 (1,115,335) Balance at June 30, 2024 $ 3,190,287
The City’s plan is nonfunded, meaning there have not been assets placed into an irrevocable trust, therefore the plan fiduciary net position is zero.

Sensitivity to Changes in the Discount Rate
The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher, is as follows:

Discount Rate - 1% Current Discount Discount Rate + 1%
(2.65%) Rate (3.65%) (4.65%)
$ 3,623,055 $ 3,190,287 $ 2,833,996
Plan's Net OPEB Liability
Sensitivity to Changes in the Healthcare Cost Trend Rates The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates, is as follows:
1% Decrease Current Trend 1% Increase
$ 2,796,288 $ 3,190,287 $ 3,677,871
Plan's Net OPEB Liability
PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
80 Note 12 – Other Post-Employment Benefits (OPEB) (Continued) C. Deferred Inflows and Outflows of Resources
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience 1,525 $ $ (1,037,964) Changes in assumptions 175,310 (929,659)
Employer contributions made subsequent to
the measurement date 156,521 -
Total $ 333,356 $ (1,967,623)
For the year ended June 30, 2024, the City recognized OPEB expense of $159,714. Of the total amount reported as deferred outflows of resources related to OPEB, $156,521 resulting from City contributions subsequent to the measurement date and before the end of the fiscal year will be included as a reduction of the net OPEB liability in the year ended June 30, 2025.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Deferred Outflows/
Ended June 30 (Inflows) of Resources
2025 $ (218,107)
2026 (377,761)
2027 (386,352)
2028 (368,825)
2029 (286,871)
Thereafter (152,872)
$ (1,790,788)
Note 13 – Commitments and Contingencies
A. Lawsuits
City management believes, based upon consultation with the City Attorney, that litigation, in the aggregate, are not expected to result in a material adverse financial impact on the City and that insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

B. Federal and State Grant Programs
The City participates in Federal and State grant programs that are audited by the City's independent accountants if required by and in accordance with the provisions of the Uniform Guidance and applicable State requirements. For Federal programs, the City did not reach the level of qualifying expenditures during the current fiscal year that would require a single audit. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
81 Note 13 – Commitments and Contingencies (Continued)
C. Capital Commitments
The City had the following capital commitments outstanding as of June 30, 2024:

Capital Commitments
Outstanding
Amount
Street Improvements $ 785,877
Facility Improvements 52,014
Park Improvements 8,131
$ 846,022
Note 14 – Stewardship, Compliance and Accountability
A. Fund Balance/Net Position Deficits
The City’s governmental activities had an unrestricted net position (deficit) of $(29,485,067) as of June 30, 2024.

This is mainly due to reporting of net pension liability of $(54,110,601) as required under GASB Statement No. 68 (Note 11) and reporting of Total OPEB liability of $(2,953,722) as required under GASB Statement No. 75 (Note 12).

At June 30, 2024, the following funds had a fund balances (deficit) or unrestricted net position (deficit):

Fund Fund Type Deficit
RSTP Special Revenue Fund $ (349,316)
Operating Grants Fund Special Revenue Fund (1,651)
Special Revenue Funds
A net deficit exists in the RSTP Fund and Operating Grants Fund. These funds deficit is a result of the timing of grant reimbursements. This net deficit will be eliminated during the upcoming fiscal year.

B. Expenditures Exceeding Appropriations
For the year ended June 30, 2024, there is no fund that expenditures exceeded appropriations.

PGCC 4-2-25

City of Pacific Grove
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
82 Note 15 – Net Investment in Capital Assets
Net Investment in Capital Assets at June 30, 2024 consisted of the following:

Governmental Business-Type
Activities Activities
Net investment in capital assets:

Capital assets, nondepreciable 7,862,909 $ 1,346,387 $
Capital assets, depreciable/amortizable, net 35,540,395 27,137,683 Account payable related to construction (460,941) (745,991) Retention payable (39,555) -
Long-term debt:

PG&E Loan (31,403) -
2013 Wastewater Revenue
Refunding Bond - (573,704)
Clean Water State Loan - (4,385,661)
2004 Golf Course Project - (1,526,268)
Subscription Payable (200,738) -
Total net investment in capital assets $ 42,670,667 $ 21,252,446 Note 16 ‒ Changes to or within the Financial Reporting Entity The ASBS Grant Special Revenue Fund was previously reported as a major fund, but due to the City expending the majority of remaining ASBS Grant fund, the fund no longer meets the quantitative threshold requiring the fund to be reported as a major fund for the fiscal year ended June 30, 2024. The RSTP Special Revenue Fund was previously reported as a nonmajor fund, but due to the City receiving more funds, the fund now meets the quantitative threshold requiring the fund to be reported as a major fund for the fiscal year ended June 30, 2024. The changes to or within the financial reporting entity resulted in adjustments to and restatements of beginning fund balance, as follows:

June 30,2023 Change to or with the June 30, 2023
As Previously Reported Financial Reporting Entity As Restated Governmental Funds
Major Funds
General Fund 15,025,353 $ - $ $ 15,025,353
ASBS Grant 23,629 (23,629) -
CDBG Grant fund 1,279,642 - 1,279,642
Capital improvement projects 22,626 - 22,626
RSTP fund - (40,122) (40,122)
Non-major Governmental Funds 8,656,893 63,751 8,720,644 Total Governmental Funds $ 25,008,143 $ - $ 25,008,143
PGCC 4-2-25

83 City of Pacific Grove, California
Required Supplementary Information
Note that the schedules in this section are unaudited
El Carmelo Cemetery
Chautaqua Hall
PGCC 4-2-25

84 PGCC 4-2-25

85 City of Pacific Grove
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2024
Note 1 – Budgetary Control and Accounting Policy
The City’s budgetary records are maintained on a modified accrual basis. Revenues are recorded when measurable and available; and expenditures are recorded when goods and services are received or the liability incurred. The City produces an annual budget, which serves as the foundation for the City’s financial planning and control. Based on the City Budget’s Policy 400-6 Budget and Financial Management Policy, the City is required to maintain a balanced operating budgeted; along with using one-time revenues to fund nonrecurring expenditures. In the budget development process, the City Council and staff reference Council’s adopted Community Goals and Work Plan Focused Priority Areas, while also establishing annual Department Operational Goals.

In accordance with the City’s Budget and Financial Management Policy, the City Manager recommends the budget to the City Council in May. After public input and discussion is received, the City Council may request modifications to the budget or introduce an ordinance adopting the budget. Expenditures authorized in the final budget ordinance are appropriated at the Fund level, and in the case of the General Fund, at the department or program level. The Council may adopt an ordinance to amend the budget during the year to reflect changing Council priorities or staff recommendations. The City Manager has the authority to transfer funds within a given fund and between department appropriations to ensure that programmatic budgets may adapt throughout the year to evolving circumstances.

All governmental, enterprise, and internal service funds are appropriated annually. The governmental funds include General, special revenue, capital project and permanent funds.

Additional information on the City’s budget and encumbrance accounting can be found in Note 1S-Budgetary Information and Note 1T-Encumbrances.

PGCC 4-2-25

86 PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes
Property taxes $ 9,609,000 $ 9,881,000 $ 10,001,561 $ 120,561 Sales and use taxes 5,957,000 6,039,000 5,975,031 (63,969) Franchise and other taxes 1,585,000 1,625,000 1,635,968 10,968 Transient occupancy taxes 6,562,000 6,840,000 6,820,365 (19,635) Utility users taxes 2,005,000 2,003,000 2,118,068 115,068 Business license tax 370,000 385,000 607,647 222,647
Other taxes 187,000 182,000 177,881 (4,119)
Intergovernmental 41,000 234,000 278,308 44,308
Licenses, permits, and impact fees 885,000 1,318,000 1,322,285 4,285 Fines and forfeitures 530,000 394,000 314,242 (79,758)
Charges for services 1,643,000 1,783,000 1,737,498 (45,502) Interest, rents, and concessions 436,750 603,057 1,125,585 522,528 Other revenues 1,362,787 1,001,100 1,135,321 134,221
Total revenues 31,173,537 32,288,157 33,249,760 961,603 EXPENDITURES:

Current:

General government 5,322,421 5,673,734 5,305,657 368,077 Public safety:

Police 8,305,755 8,116,264 7,850,494 265,770
Fire 4,425,400 4,521,532 4,508,537 12,995
Public works 4,967,832 4,998,854 4,399,770 599,084
Recreation 1,101,418 1,403,404 1,224,512 178,892
Library 1,143,910 1,172,182 1,129,218 42,964
Museum 337,400 343,400 346,494 (3,094)
Community development 3,006,773 3,881,283 2,908,796 972,487 Capital outlay 215,000 366,722 291,690 75,032
Debt service:

Principal retirement 1,428,466 1,428,416 576,256 852,160 Interest and fiscal charges - - 930,396 (930,396)
Total expenditures 30,254,375 31,905,791 29,471,820 2,433,971

EXCESS OF REVENUES OVER
EXPENDITURES 919,162 382,366 3,777,940 3,395,574
OTHER FINANCING USES:

Transfers in - - 3,359 3,359
Transfers out (1,789,187) (1,597,500) (1,252,510) 344,990 Proceeds from sale of assets 5,000 1,000 6,800 5,800
Proceeds from debt issuance - - 20,846 20,846
Total other financing uses (1,784,187) (1,596,500) (1,221,505) 374,995 NET CHANGE IN FUND BALANCE $ (865,025) $ (1,214,134) 2,556,435 $ 3,770,569 FUND BALANCE:

Beginning of year 15,025,353
End of year $ 17,581,788
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund
For the Year Ended June 30, 2024
87 PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes
Other taxes $ - $ - $ 69,450 $ 69,450
Intergovernmental 750,000 1,082,602 - (1,082,602)
Total revenues 750,000 1,082,602 69,450 (1,013,152)
EXPENDITURES:

Current:

Community development - - 378,644 (378,644)
Capital outlay 750,000 1,029,500 1,029,500 -
Total expenditures 750,000 1,029,500 378,644 650,856
NET CHANGE IN FUND BALANCE $ - $ 53,102 (309,194) $ (362,296) FUND BALANCE (DEFICIT):

Beginning of year (40,122)
End of year $ (349,316)
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual RSTP Special Revenue Fund
For the Year Ended June 30, 2024
88 PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 7,500 $ 30,000 $ 50,381 $ 20,381 Other revenues - 45,000 91 (44,909)
Total revenues 7,500 75,000 50,472 (24,528)
EXPENDITURES:

Current:

Community development 520,000 520,000 5,131 514,869
Total expenditures 520,000 520,000 5,131 514,869
NET CHANGE IN FUND BALANCE $ (512,500) $ (445,000) 45,341 $ 490,341 FUND BALANCE:

Beginning of year 1,279,642
End of year $ 1,324,983
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CDBG Grant Special Revenue Fund
For the Year Ended June 30, 2024
89 PGCC 4-2-25

2014-151 2015-16 2016-17 2017-18 2018-19
Proportion of Net Pension Liability 0.3730% 0.3824% 0.3994% 0.3977% 0.4118% Proportionate Share of Net Pension Liability $ 26,535,640 23,123,343 $ 34,564,209 $ 39,440,944 $ 39,679,281 $ Covered payroll $ 5,714,952 5,543,503 $ 6,248,635 $ 5,873,761 $ 7,328,064 $ Net Pension Liability
as a % of Covered Payroll 417.13% 464.32% 553.15% 671.48% 541.47% Plan's Fiduciary Net Position
as a % of the TPL 81.99% 78.40% 74.06% 73.31% 75.26%
City of Pacific Grove
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of Net Pension Liability For the Year Ended June 30, 2024
Last Ten Fiscal Years
90 PGCC 4-2-25

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Proportion of Net Pension Liability 0.4169% 0.4226% 0.6037% 0.4527% 0.4410% Proportionate Share of Net Pension Liability $ 42,724,135 $ 45,982,402 $ 32,650,197 $ 52,295,194 $ 55,021,695 Covered payroll $ 8,120,599 8,029,195 $ 7,539,260 $ 8,361,384 $ 8,989,993 $ Net Pension Liability
as a % of Covered Payroll 532.11% 566.24% 433.07% 625.44% 612.03% Plan's Fiduciary Net Position
as a % of the TPL 75.26% 75.10% 88.29% 76.68% 76.21%
City of Pacific Grove
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of Net Pension Liability (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
91 PGCC 4-2-25

2014-15 2015-16 2016-17 2017-18 2018-19
Actuarially determined contribution $ 837,801 $ 1,784,443 $ 1,995,457 $ 2,392,372 $ 2,857,889 Contributions in relation to
the actuarially determined contribution1 (837,801) (1,784,443) (1,995,457) (2,392,372) (2,857,889) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 5,714,952 $ 6,248,635 $ 5,873,761 $ 7,328,064 $ 8,029,195 Contributions as a percentage of covered payroll 14.66% 28.56% 33.97% 32.65% 35.59% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method
Remaining Amortization PeriodsDiffers by employer rate plan but not more than 28 years Asset valuation method Market value of assets
Inflation 2.30%
Salary increases Varies by category, entry age, and service Discount Rate 6.80% (net of investment and administrative expenses) Mortality Derived using CalPERS’ Membership Data for all Funds.

The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 80 percent of Scale MP-2020
Varies by date established and source. May be level dollar or level percent of pay and may include direct rate
City of Pacific Grove
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2024
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report..

Last Ten Fiscal Years
1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 92 PGCC 4-2-25

2019-20 2020-21 2021-22 2022-23 2023-24
Actuarially determined contribution $ 3,404,853 $ 3,760,395 $ 4,332,824 $ 4,811,828 $ 2,946,588 Contributions in relation to
the actuarially determined contribution1 (3,760,395) (3,404,566) (4,332,824) (4,811,828) (2,946,588) Contribution deficiency (excess) $ 287 $ - $ - $ - $ -
Covered payroll $ 8,120,599 $ 7,539,260 $ 8,361,384 $ 8,989,993 $ 9,367,731 Contributions as a percentage of covered payroll 41.93% 49.88% 51.82% 53.52% 31.45% Last Ten Fiscal Years
City of Pacific Grove
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2024
93 PGCC 4-2-25

Fiscal year 2017-181 2018-19 2019-20 2020-21 2021-22
Total OPEB liability
Service cost 194,311 $ 168,509 $ 162,418 $ 227,721 $ 312,533 $ Interest 119,338 139,246 150,001 149,231 118,772
Changes of benefit terms - - (10,980) - -
Changes of assumptions (415,636) (152,945) 172,969 814,841 (188,228) Differences between expected and actual experience - - 7,390 - (203,234) Benefit payments, including refunds (171,120) (168,800) (156,858) (162,898) (169,211) Administrative expense - - 1,112 - -
Net change in total OPEB liability (273,107) (13,990) 326,052 1,028,895 (129,368) Total OPEB liability - beginning of the year 4,078,542 3,805,435 3,791,445 4,117,497 5,146,392 Total OPEB liability - end of the year (a) $ 3,791,445 3,805,435 $ 4,117,497 $ 5,146,392 $ 5,017,024 $ Covered-employee payroll $ 7,915,595 7,678,127 $ 8,673,911 $ 8,151,351 $ 9,186,311 $ Plan total OPEB liability as a percentage of
covered-employee payroll 49.56% 47.90% 47.47% 63.14% 54.61% Notes to Schedule:

Changes of benefit terms: There were no changes of benefit terms in 2024.

There are no assets in the accumulated trust.

Changes of assumptions: discount rates decreased from 3.87% to 3.5% in 2019, then to 2.21% in 2020, 2.16% in 2021, 3.54% in 2022 and increase to 3.65% at June 30, 2023.
1 Historical information is presented for measurement periods after GASB 75 implementation in 2017-18. Additional years' information will be displayed as it becomes available.

City of Pacific Grove
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
Retiree Healthcare Plan
94 PGCC 4-2-25

Fiscal year 2022-23 2023-24
Total OPEB liability
Service cost $ 215,865 288,848 $
Interest 156,724 112,491
Changes of benefit terms - -
Changes of assumptions (916,826) (214,044)
Differences between expected and actual experience (1,085,337) - Benefit payments, including refunds (195,915) (188,543) Administrative expense - -
Net change in total OPEB liability (711,402) (1,115,335) Total OPEB liability - beginning of the year 5,017,024 4,305,622 Total OPEB liability - end of the year (a) $ 3,190,287 4,305,622 $ Covered-employee payroll $ 10,192,805 9,226,324 $
Plan total OPEB liability as a percentage of
covered-employee payroll 46.67% 31.30%
Retiree Healthcare Plan
City of Pacific Grove
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
95 PGCC 4-2-25

96 PGCC 4-2-25

97 City of Pacific Grove, California
Supplementary Information
Ed Ricketts Lab
Asilomar Conference Grounds
PGCC 4-2-25

98 PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ - $ 213,854 $ 110,948 $ (102,906)
Interest, rents, and concessions - - 12,533 12,533
Other revenues - 471,652 1 (471,651)
Total revenues - 685,506 123,482 (562,024)
EXPENDITURES:

Current:

General government - - 1,528 (1,528)
Capital outlay 850,000 1,285,506 534,384 751,122
Total expenditures 850,000 1,285,506 535,912 749,594

EXCESS OF REVENUES OVER
EXPENDITURES (850,000) (600,000) (412,430) 187,570
OTHER FINANCING USES:

Transfers in 850,000 750,000 750,000 -
Total other financing uses 850,000 750,000 750,000 -
NET CHANGE IN FUND BALANCE $ - $ 150,000 337,570 $ 187,570 FUND BALANCE:

Beginning of year 22,626
End of year $ 360,196
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Improvement Projects Fund
For the Year Ended June 30, 2024
99 PGCC 4-2-25

100
PGCC 4-2-25

101
City of Pacific Grove, California
Nonmajor Governmental Funds

SPECIAL REVENUE FUNDS
These funds account for revenue sources that are restricted for specific purposes (other than those resources to be expended solely for the construction of major capital facilities).

Carillion Fund - The Carillon Fund accounts for donations designated for the maintenance of the tower clock and chimes system at City Hall.

Environmental Enhancement Fund - The Environmental Enhancement Fund accounts for revenues associated with Coastal Area Planning grants, coastal area land use, and Environmental Impact Report deposit funds.

State Franchise PEG Fund - Receives funding from the City's cable franchisee to support Public, Educational and Governmental (PEG) programming on local Public Access television. The fund supports equipment expenditures to aid in broadcasting based on the terms of the Digital Infrastructure and Video Competition Act of 2006.

Library Building & Equipment Fund - The Library Building and Equipment Fund accounts for donations designated for improvements and equipment for the City Library.

Museum Improvement Fund - The Museum Improvement Fund accounts for donations designated for improvements to the Museum of Natural History.

Downtown Business District Fund - Provides for the collection of self-assessed fees from businesses within the Business Improvement District and the payment of those fees to the Pacific Grove Chamber of Commerce. Businesses within the BID remit these fees to the City upon the annual renewal of their business licenses.

Hospitality Improvement District Fund - Records the collection and distribution of self-assessed fees by the hotels. Half of the collected funds are remitted to the Pacific Grove Chamber of Commerce, while the other half, Monterey County Tourism Improvement District (MCTID) is remitted to the Monterey County Convention and Visitor's Bureau.

Library Book Fund - The Library Book Fund receives donations and contributions are for the specific purpose of purchasing books for the City Library.

Fire Emergency Equipment Fund - The Fire Emergency Equipment Fund accounts are for grants, fees, and donations in support of Fire Department safety programs.

American Rescue Plan Act Fund (ARPA) - Receives funds from the American Rescue Plan Act and records expenditures that are applied against the granted funds.

Local Streets and Roads Fund - Monterey County voters approved Measure X, which authorized the Transportation Agency of Monterey County (TAMC) to impose and administer a three-eighths cent transaction and use tax. This fund receives tax proceeds to pay for pedestrian and vehicular transportation projects and programs.

Gas Tax Fund - The Gas Tax Fund accounts for State shared gasoline tax revenues that are utilized for street-related operating and capital project costs.

Chautauqua Hall Fund - Chautauqua Hall was built in 1881 and was designated a State Historical Landmark. The Chautauqua Hall Fund accounts for funds from the Chautauqua Hall Preserve that are used to support building repairs and maintenance.

Lighthouse Maintenance & Improvement Fund - Receipts admission fees, gift shop sales, and donations to support operations at the Point Pinos Lighthouse visitor's center and gift shop. Expenditures include staffing, maintenance, supplies, and improvements.

Senior Housing Fund - The Senior Housing Fund accounts for donations and other revenues to develop and maintain senior housing opportunities.

CalHOME Reuse Fund - Funding from the California Department of Housing and Community Development that is administered by the City. Funds provide loans to low and very low-income households for down payment assistance and home rehabilitation. The loans are payable on sale or transfer of homes or when they cease to be owner occupied, or at maturity.

PGCC 4-2-25

102
City of Pacific Grove, California
Nonmajor Governmental Funds (Continued)
SPECIAL REVENUE FUNDS (Continued)
Small Business Grants Fund - In Fiscal Year 20/21, the City established a Small Business Grant Fund to assist small businesses in recovering from the COVID-19 pandemic. This fund was established with a $50,000 transfer from the General Fund. This fund may be used in the future for further small business assistance programs.

General Plan Maintenance Fee Fund - The General Plan Maintenance Fund accounts for fees collected to maintain the City’s General Plan. These fees will be expended to maintain and monitor the General Plan.

Poetry Promotion Fund - The Fund receives income from donations and a bequest to support the promotion of poetry.

Yount Income Fund - The Yount Income Fund accounts for the expendable portion of the Yount Trust Fund which is to be used for beautification of the city and for minor improvements to educational and/or recreational facilities.

Public Safety Augmentation Fund - The Public Safety Augmentation Fund accounts for revenue from Proposition 172 public safety sales tax and interfund transfers to pay for a contract with Monterey County Emergency Communications for 911 emergency dispatch services.

Supplemental Law Enforcement Fund - Receives Supplemental Law Enforcement Services Funds (SLESF) to partially fund the costs of the Department’s School Resource Officer (SRO), training expenses, supplies and equipment. Revenues also include funding from the PG Unified School District to partially fund the SRO position.

Vehicle Abandonment Fund - The City receives a $1 tax on vehicle registrations and is reimbursed based on each abandoned vehicle marked, ticketed, and/or towed. Funds are used in the Police Department's abatement program for training, supplies, and equipment.

Strong Disbursements Fund - Accounts for expenditures of income received from the Bertha Strong private foundation held for the benefit of the City Pacific Grove for civic improvements. Revenue is the greater of net income or the required minimum distribution from the corpus of the foundation as governed by the IRS.

Housing Fund - The Housing Fund accounts are for the administration of housing loan activities.

Coastal Conservency Grant Fund - Grant proceeds from the Coastal Conservency to fund coastal conservency related projects and plans that maintain and improve beaches and coastal parks.

Operating Grant Fund - The Operating Donations Fund accounts for grants from federal, state and local agencies to support a variety of public services including police, fire, community development, parks, recreation, and museum facilities.

RMRA Fund - Receipts funding from the Road Repair and Accountability Act of 2017, which include increased gas tax, diesel excise and sales tax; and a zero-emission vehicle registration fee for local transportation projects. Funding allocations are project specific and require a maintenance of effort (MOE) requirement.

Traffic Cong Relief Fund - To supports street-related projects that are supported by the state or federal government.

McIndoo Donation Fund - The McIndoo Donation Fund accounts for the receipt of a donation from the Jeanette J. Mclndoo Trust for beautification and enhancement of public facilities and grounds.

RSTP Fund - This fund receives federal and state transportation funding through the Transportation Agency for Monterey County (TAMC). TAMC allocates these funds to local agencies and are used for bicycle and pedestrian projects, local roads, and transit.

PERMANENT FUNDS
Library Endowment Trust Fund - Retains donations and bequeaths for the benefit of Library materials and collections.

Cemetery Endowment Trust Fund - Accounts for revenues paid for the El Carmelo Cemetery endowment care, perpetual expenses; and the general preservation of burial sites, grounds, walking paths, roadways, boundaries, and structures.

Yount Trust Fund - Receives interest income from non-expendable trust fund. The actual interest earned is transferred to the Yount Income Fund to support beautification of the City and minor improvements to education or recreational facilities.

PGCC 4-2-25

State Library
Environmental Franchise Building &
Carillion Enhancement PEG Equipment
Fund Fund Fund Fund
ASSETS
Cash and investments $ 10,421 $ 119,676 $ 104,627 $ 74,071 Receivables:

Accounts - - 11,550 -
Taxes - - - -
Loans - - - -
Interest - - - -
Total assets $ 10,421 $ 119,676 $ 116,177 $ 74,071
Liabilities:

Accounts payable $ - $ - $ - $ 1,725
Due to other funds - - - -
Total liabilities - - - 1,725
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable:

Permanent funds - - - -
Restricted:

Social service programs - - - -
Public safety - - - -
Community development 10,421 119,676 116,177 72,346
Lost revenue recovery - - - -
Street improvements - - - -
Unassigned (deficit) - - - -
Total fund balances 10,421 119,676 116,177 72,346
Total liabilities, deferred inflows of
resources, and fund balances $ 10,421 $ 119,676 $ 116,177 $ 74,071 (Continued)

RESOURCES AND FUND BALANCES
City of Pacific Grove
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES, DEFERRED INFLOWS OF
Special Revenue Funds
103
PGCC 4-2-25

Downtown Hospitality
Museum Business Improvement Library
Improvement District District Book
Fund Fund Fund Fund
ASSETS
Cash and investments $ 344,823 $ 27,602 $ 105,372 $ 50,671 Receivables:

Accounts - - - -
Taxes - 2,483 39,432 -
Loans - - - -
Interest - - - -
Total assets $ 344,823 $ 30,085 $ 144,804 $ 50,671
Liabilities:

Accounts payable $ - $ - 143,418 $ $ 11,362
Due to other funds - - - -
Total liabilities - - 143,418 11,362
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable:

Permanent funds - - - -
Restricted:

Social service programs - - - 39,309
Public safety - - - -
Community development 344,823 30,085 1,386 -
Lost revenue recovery - - - -
Street improvements - - - -
Unassigned (deficit) - - - -
Total fund balances 344,823 30,085 1,386 39,309
Total liabilities, deferred inflows of
resources, and fund balances $ 344,823 $ 30,085 $ 144,804 $ 50,671 (Continued)
Special Revenue Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
June 30, 2024
Nonmajor Governmental Funds
Combining Balance Sheet (Continued)
City of Pacific Grove
104
PGCC 4-2-25

Fire American Local
Emergency Rescue Plan Streets and Gas
Equipment Act (ARPA) Roads Tax
Fund Fund Fund Fund
ASSETS
Cash and investments $ 195,633 $ 1,002,957 $ 983,804 $ 270,293 Receivables:

Accounts - - - -
Taxes - - 196,581 34,178
Loans - - - -
Interest - - - -
Total assets $ 195,633 $ 1,002,957 $ 1,180,385 $ 304,471 Liabilities:

Accounts payable $ - $ 107,788 $ 143,495 $ 43,350
Due to other funds - - - -
Total liabilities - 107,788 143,495 43,350
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable:

Permanent funds - - - -
Restricted:

Social service programs - - - -
Public safety - 195,633 - -
Community development - - - -
Lost revenue recovery 895,169 - - -
Street improvements - - 1,036,890 261,121
Unassigned (deficit) - - - -
Total fund balances 195,633 895,169 1,036,890 261,121
Total liabilities, deferred inflows of
resources, and fund balances $ 195,633 $ 1,002,957 $ 1,180,385 $ 304,471 (Continued)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Pacific Grove
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
105
PGCC 4-2-25

Lighthouse
Chautauqua Maintenance & Senior CalHOME
Hall Improvement Housing Reuse
Fund Fund Fund Fund
ASSETS
Cash and investments $ 16,022 $ 231,984 $ 11,194 $ 267,470 Receivables:

Accounts - 2,334 - -
Taxes - - - -
Loans - - - 242,888
Interest - - - -
Total assets $ 16,022 $ 234,318 $ 11,194 $ 510,358
Liabilities:

Accounts payable $ - $ 10,348 $ - $ -
Due to other funds - - - -
Total liabilities - 10,348 - -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable:

Permanent funds - - - -
Restricted:

Social service programs - - 11,194 510,358
Public safety - - - -
Community development 16,022 223,970 - -
Lost revenue recovery - - - -
Street improvements - - - -
Unassigned (deficit) - - - -
Total fund balances 16,022 223,970 11,194 510,358
Total liabilities, deferred inflows of
resources, and fund balances $ 16,022 $ 234,318 $ 11,194 $ 510,358 (Continued)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Pacific Grove
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
106
PGCC 4-2-25

Small General Plan
Business Maintenance Poetry Yount
Grants Fee Promotion Income
Fund Fund Fund Fund
ASSETS
Cash and investments $ - $ 8,230 $ 149,336 $ 16,408
Receivables:

Accounts - - - -
Taxes - - - -
Loans - - - -
Interest - - - -
Total assets $ - $ 8,230 $ 149,336 $ 16,408
Liabilities:

Accounts payable $ - $ - $ 740 $ -
Due to other funds - - - -
Total liabilities - - 740 -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable:

Permanent funds - - - -
Restricted:

Social service programs - - 148,596 -
Public safety - - - -
Community development - 8,230 - 16,408
Lost revenue recovery - - - -
Street improvements - - - -
Unassigned (deficit) - - - -
Total fund balances - 8,230 148,596 16,408
Total liabilities, deferred inflows of
resources, and fund balances $ - $ 8,230 $ 149,336 $ 16,408 (Continued)
City of Pacific Grove
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
107
PGCC 4-2-25

Public Supplemental
Safety Law Vehicle Strong
Augmentation Enforcement Abandonment Disbursements
Fund Fund Fund Fund
ASSETS
Cash and investments $ 45,106 $ 105,276 $ 29,686 $ 14,946 Receivables:

Accounts 28,620 16,667 10,105 -
Taxes - - - -
Loans - - - -
Interest - - - -
Total assets $ 73,726 $ 121,943 $ 39,791 $ 14,946
Liabilities:

Accounts payable $ - $ 73,029 $ - $ -
Due to other funds - - - -
Total liabilities - 73,029 - -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable:

Permanent funds - - - -
Restricted:

Social service programs - - - -
Public safety 48,914 73,726 39,791 -
Community development - - - 14,946
Lost revenue recovery - - - -
Street improvements - - - -
Unassigned (deficit) - - - -
Total fund balances 73,726 48,914 39,791 14,946
Total liabilities, deferred inflows of
resources, and fund balances $ 73,726 $ 121,943 $ 39,791 $ 14,946 (Continued)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Pacific Grove
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
108
PGCC 4-2-25

Coastal
Conservency Operating
Housing Grant Grants RMRA
Fund Fund Fund Fund
ASSETS
Cash and investments $ 385,127 $ 89,483 $ - $ 577,924
Receivables:

Accounts - - 155,634 -
Taxes - - - 67,286
Loans 143,550 - - -
Interest - - - -
Total assets $ 528,677 $ 89,483 $ 155,634 $ 645,210
Liabilities:

Accounts payable $ 3,125 $ - $ 71,211 $ -
Due to other funds - - 20,602 -
Total liabilities 3,125 - 91,813 -
Deferred inflows of resources:

Unavailable revenue - - 65,472 -
Total deferred inflows of resources - - 65,472 -
Fund Balances:

Nonspendable:

Permanent funds - - - -
Restricted:

Social service programs 525,552 - - -
Public safety - - - -
Community development - 89,483 - -
Lost revenue recovery - - - -
Street improvements - - - 645,210
Unassigned (deficit) - - (1,651) -
Total fund balances 525,552 89,483 (1,651) 645,210
Total liabilities, deferred inflows of
resources, and fund balances $ 528,677 $ 89,483 $ 155,634 $ 645,210 (Continued)
City of Pacific Grove
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
109
PGCC 4-2-25

Permanent Funds
Traffic Library
Congestion McIndoo ASBS Endowment
Relief Donation Grant Trust
Fund Fund Fund Fund
ASSETS
Cash and investments $ - $ 22,133 $ 26,137 $ 565,637
Receivables:

Accounts - - - -
Taxes - - - -
Loans - - - -
Interest - - - -
Total assets $ - $ 22,133 $ 26,137 $ 565,637
Liabilities:

Accounts payable $ - $ - $ - $ -
Due to other funds - - - -
Total liabilities - - - -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable:

Permanent funds - - - 565,637
Restricted:

Social service programs - - 26,137 -
Public safety - - - -
Community development - 22,133 - -
Lost revenue recovery - - - -
Street improvements - - - -
Unassigned (deficit) - - - -
Total fund balances - 22,133 26,137 565,637
Total liabilities, deferred inflows of
resources, and fund balances $ - $ 22,133 $ 26,137 $ 565,637 (Continued)
City of Pacific Grove
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Special Revenue Funds
110
PGCC 4-2-25

Cemetery Total
Endowment Yount Nonmajor
Trust Trust Governmental
Fund Fund Funds
ASSETS
Cash and investments $ 2,145,254 $ 801,399 $ 8,798,702
Receivables:

Accounts - - 224,910
Taxes - - 339,960
Loans - - 386,438
Interest - 2,016 2,016
Total assets $ 2,145,254 $ 803,415 $ 9,752,026
Liabilities:

Accounts payable $ - $ - $ 609,591
Due to other funds - 22,044 42,646
Total liabilities - 22,044 652,237
Deferred inflows of resources:

Unavailable revenue - - 65,472
Total deferred inflows of resources - - 65,472
Fund Balances:

Nonspendable:

Permanent funds 2,145,254 781,371 3,492,262
Restricted:

Social service programs - - 1,261,146
Public safety - - 358,064
Community development - - 1,086,106
Lost revenue recovery - - 895,169
Street improvements - - 1,943,221
Unassigned (deficit) - - (1,651)
Total fund balances 2,145,254 781,371 9,034,317
Total liabilities, deferred inflows of
resources, and fund balances $ 2,145,254 $ 803,415 $ 9,752,026 (Concluded)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Pacific Grove
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Permanent Funds
111
PGCC 4-2-25

State Library
Environmental Franchise Building &
Carillion Enhancement PEG Equipment
Fund Fund Fund Fund
REVENUES:

Taxes:

Sales and use taxes - $ $ - $ - $ -
Franchise and other taxes - - 46,594 -
Transient occupancy taxes - - - -
Business license tax - - - -
Intergovernmental - - - -
Charges for services - - - -
Interest, rents, and concessions 796 5,879 4,517 4,953
Other revenues - - - 2,570
Total revenues 796 5,879 51,111 7,523
EXPENDITURES:

Current:

General government - - 26,000 -
Public safety:

Police - - - -
Fire - - - -
Public works - - - -
Recreation - - - -
Library - - - 17,424
Community development - - - -
Capital outlay - - - 53,986
Debt service:

Principal retirement - - - -
Interest - - - -
Total expenditures - - 26,000 71,410

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 796 5,879 25,111 (63,887)
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Inception of subscription liability - - - -
Total other financing sources (uses) - - - -
NET CHANGES IN FUND BALANCES 796 5,879 25,111 (63,887)
FUND BALANCES (DEFICIT):

Beginning of year, as previously reported 9,625 113,797 91,066 136,233 Change with financial reporting entity
(major and non-major fund classification) (Note 16) - - - - Beginning of year, as restated (Note 16) 9,625 113,797 91,066 136,233 End of year $ 10,421 $ 119,676 $ 116,177 $ 72,346
(Continued)
Special Revenue Funds
City of Pacific Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2024
112
PGCC 4-2-25

Downtown Hospitality
Museum Business Improvement Library
Improvement District District Book
Fund Fund Fund Fund
REVENUES:

Taxes:

Sales and use taxes $ - $ - $ - $ -
Franchise and other taxes - - - -
Transient occupancy taxes - - 555,504 -
Business license tax - 37,264 - -
Intergovernmental - - - -
Charges for services - - - -
Interest, rents, and concessions 16,939 1,751 4,155 4,886 Other revenues - - - 47,033
Total revenues 16,939 39,015 559,659 51,919
EXPENDITURES:

Current:

General government - 19,404 567,201 -
Public safety:

Police - - - -
Fire - - - -
Public works - - - -
Recreation - - - -
Library - - - 45,985
Community development - - - -
Capital outlay - - - -
Debt service:

Principal retirement - - - -
Interest - - - -
Total expenditures - 19,404 567,201 45,985

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 19,611 16,939 (7,542) 5,934
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Inception of subscription liability - - - -
Total other financing sources (uses) - - - -
NET CHANGES IN FUND BALANCES 16,939 19,611 (7,542) 5,934 FUND BALANCES (DEFICIT):

Beginning of year, as previously reported 327,884 10,474 8,928 33,375 Change with financial reporting entity
(major and non-major fund classification) (Note 16) - - - - Beginning of year, as restated (Note 16) 10,474 327,884 8,928 33,375 End of year $ 344,823 $ 30,085 $ 1,386 $ 39,309
(Continued)
Special Revenue Funds
City of Pacific Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
113
PGCC 4-2-25

Fire American Local
Emergency Rescue Plan Streets and Gas
Equipment Act (ARPA) Roads Tax
Fund Fund Fund Fund
REVENUES:

Taxes:

Sales and use taxes $ - $ - $ 785,820 $ -
Franchise and other taxes - - - -
Transient occupancy taxes - - - -
Business license tax - - - -
Intergovernmental - - - 396,720
Charges for services - - - -
Interest, rents, and concessions 9,527 49,418 40,135 12,364 Other revenues 20,203 - - -
Total revenues 29,730 49,418 825,955 409,084
EXPENDITURES:

Current:

General government - 4,450 - -
Public safety:

Police - - - -
Fire 5,527 - - -
Public works - - - 328,648
Recreation - - - -
Library - - - -
Community development - - - -
Capital outlay - 223,963 943,822 -
Debt service:

Principal retirement - - - -
Interest - - - -
Total expenditures 5,527 228,413 943,822 328,648

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (178,995) 24,203 (117,867) 80,436
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Inception of subscription liability - - - -
Total other financing sources (uses) - - - -
NET CHANGES IN FUND BALANCES 24,203 (178,995) (117,867) 80,436 FUND BALANCES (DEFICIT):

Beginning of year, as previously reported 171,430 1,074,164 1,154,757 180,685 Change with financial reporting entity
(major and non-major fund classification) (Note 16) - - - - Beginning of year, as restated (Note 16) 1,074,164 171,430 1,154,757 180,685 End of year $ 195,633 $ 895,169 $ 1,036,890 $ 261,121
(Continued)
City of Pacific Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
114
PGCC 4-2-25

Lighthouse
Chautauqua Maintenance & Senior CalHOME
Hall Improvement Housing Reuse
Fund Fund Fund Fund
REVENUES:

Taxes:

Sales and use taxes $ - $ - $ - $ -
Franchise and other taxes - - - -
Transient occupancy taxes - - - -
Business license tax - - - -
Intergovernmental - - - -
Charges for services - 96,211 - -
Interest, rents, and concessions 1,224 8,980 855 35,274 Other revenues - 22,806 - -
Total revenues 1,224 127,997 855 35,274
EXPENDITURES:

Current:

General government - - - -
Public safety:

Police - - - -
Fire - - - -
Public works - - - -
Recreation - 99,059 - -
Library - - - -
Community development - - - -
Capital outlay - - - -
Debt service:

Principal retirement - - - -
Interest - - - -
Total expenditures - 99,059 - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,224 28,938 855 35,274
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Inception of subscription liability - - - -
Total other financing sources (uses) - - - -
NET CHANGES IN FUND BALANCES 1,224 28,938 855 35,274
FUND BALANCES (DEFICIT):

Beginning of year, as previously reported 14,798 195,032 10,339 475,084 Change with financial reporting entity
(major and non-major fund classification) (Note 16) - - - - Beginning of year, as restated (Note 16) 195,032 14,798 10,339 475,084 End of year $ 16,022 $ 223,970 $ 11,194 $ 510,358
(Continued)
City of Pacific Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
115
PGCC 4-2-25

Small General Plan
Business Maintenance Poetry Yount
Grants Fee Promotion Income
Fund Fund Fund Fund
REVENUES:

Taxes:

Sales and use taxes - $ $ - $ - $ -
Franchise and other taxes - - - -
Transient occupancy taxes - - - -
Business license tax - - - -
Intergovernmental - - - -
Charges for services - 6,013 - -
Interest, rents, and concessions 134 2,217 42,502 1,068 Other revenues - - - -
Total revenues 134 8,230 42,502 1,068
EXPENDITURES:

Current:

General government - - - -
Public safety:

Police - - - -
Fire - - - -
Public works - - - -
Recreation - - - -
Library - - 13,620 -
Community development - 32,550 - -
Capital outlay - - - -
Debt service:

Principal retirement - - - -
Interest - - - -
Total expenditures - 32,550 13,620 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 134 (24,320) 28,882 1,068
OTHER FINANCING SOURCES (USES):

Transfers in - - - 8,000
Transfers out (1,753) - - -
Inception of subscription liability - - - -
Total other financing sources (uses) (1,753) - - 8,000
NET CHANGES IN FUND BALANCES (1,619) (24,320) 28,882 9,068 FUND BALANCES (DEFICIT):

Beginning of year, as previously reported 1,619 32,550 119,714 7,340 Change with financial reporting entity
(major and non-major fund classification) (Note 16) - - - - Beginning of year, as restated (Note 16) 1,619 32,550 119,714 7,340 End of year $ - $ 8,230 $ 148,596 $ 16,408
(Continued)
City of Pacific Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
116
PGCC 4-2-25

Public Supplemental
Safety Law Vehicle Strong
Augmentation Enforcement Abandonment Disbursements
Fund Fund Fund Fund
REVENUES:

Taxes:

Sales and use taxes $ - $ - $ - $ -
Franchise and other taxes - - - -
Transient occupancy taxes - - - -
Business license tax - - - -
Intergovernmental 175,516 195,322 15,655 -
Charges for services - - - -
Interest, rents, and concessions - 5,869 2,198 14,459
Other revenues - - - -
Total revenues 175,516 201,191 17,853 14,459
EXPENDITURES:

Current:

General government - - - -
Public safety:

Police 479,452 174,774 - -
Fire - - - -
Public works - - - -
Recreation - - - -
Library - - - -
Community development - - - -
Capital outlay - 13,439 - 25,500
Debt service:

Principal retirement - 60,287 - -
Interest - 2,013 - -
Total expenditures 250,513 479,452 - 25,500

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (49,322) (303,936) 17,853 (11,041) OTHER FINANCING SOURCES (USES):

Transfers in 314,000 - - -
Transfers out - - - -
Inception of subscription liability - - - -
Total other financing sources (uses) - 314,000 - -
NET CHANGES IN FUND BALANCES 10,064 (49,322) 17,853 (11,041) FUND BALANCES (DEFICIT):

Beginning of year, as previously reported 63,662 98,236 21,938 25,987 Change with financial reporting entity
(major and non-major fund classification) (Note 16) - - - - Beginning of year, as restated (Note 16) 98,236 63,662 21,938 25,987 End of year $ 73,726 $ 48,914 $ 39,791 $ 14,946
(Continued)
City of Pacific Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
117
PGCC 4-2-25

Coastal
Conservency Operating
Housing Grant Grants RMRA
Fund Fund Fund Fund
REVENUES:

Taxes:

Sales and use taxes $ - $ - $ - $ 386,084
Franchise and other taxes - - - -
Transient occupancy taxes - - - -
Business license tax - - - -
Intergovernmental - - 496,522 -
Charges for services - - - -
Interest, rents, and concessions 42,799 6,839 (9,102) 21,394 Other revenues 25,936 - - -
Total revenues 68,735 6,839 487,420 407,478
EXPENDITURES:

Current:

General government - - - -
Public safety:

Police - - 121,154 -
Fire - - - -
Public works - - - -
Recreation - - - -
Library - - - -
Community development 137,063 - 368,600 -
Capital outlay - - - 103,442
Debt service:

Principal retirement - - - -
Interest - - - -
Total expenditures - 137,063 489,754 103,442

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 6,839 (68,328) (2,334) 304,036
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Inception of subscription liability - - - -
Total other financing sources (uses) - - - -
NET CHANGES IN FUND BALANCES (68,328) 6,839 (2,334) 304,036 FUND BALANCES (DEFICIT):

Beginning of year, as previously reported 593,880 82,644 683 341,174 Change with financial reporting entity
(major and non-major fund classification) (Note 16) - - - - Beginning of year, as restated (Note 16) 82,644 593,880 683 341,174 End of year $ 525,552 $ 89,483 $ (1,651) $ 645,210
(Continued)
Special Revenue Funds
City of Pacific Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
118
PGCC 4-2-25

Permanent Funds
Traffic Library
Congestion McIndoo ASBS Endowment
Relief Donation Grant Trust
Fund Fund Fund Fund
REVENUES:

Taxes:

Sales and use taxes $ - $ - $ - $ -
Franchise and other taxes - - - -
Transient occupancy taxes - - - -
Business license tax - - - -
Intergovernmental - - 2,508 -
Charges for services - - - -
Interest, rents, and concessions - 2,664 - 27,506
Other revenues - - - 15,690
Total revenues - 2,664 2,508 43,196
EXPENDITURES:

Current:

General government - - - -
Public safety:

Police - - - -
Fire - - - -
Public works - - - -
Recreation - - - -
Library - - - -
Community development - - - -
Capital outlay - 17,387 - -
Debt service:

Principal retirement - - - -
Interest - - - -
Total expenditures - 17,387 - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (14,723) 2,508 43,196
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (596) - - -
Inception of subscription liability - - - -
Total other financing sources (uses) (596) - - -
NET CHANGES IN FUND BALANCES (596) (14,723) 2,508 43,196 FUND BALANCES (DEFICIT):

Beginning of year, as previously reported 596 36,856 - 522,441 Change with financial reporting entity
(major and non-major fund classification) (Note 16) - - 23,629 - Beginning of year, as restated (Note 16) 596 36,856 23,629 522,441 End of year $ - $ 22,133 $ 26,137 $ 565,637
(Continued)
Special Revenue Funds
City of Pacific Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
119
PGCC 4-2-25

Special Revenue
Funds
Cemetery Total
Endowment Yount Nonmajor
Trust Trust RSTP Governmental
Fund Fund Fund Funds
REVENUES:

Taxes:

Sales and use taxes $ - $ - $ 1,171,904
Franchise and other taxes - - 46,594
Transient occupancy taxes - - 555,504
Business license tax - - 37,264
Intergovernmental - - 1,282,243
Charges for services 74,216 - 176,440
Interest, rents, and concessions 103,711 16,674 482,585 Other revenues - - 134,238
Total revenues 177,927 16,674 3,886,772
EXPENDITURES:

Current:

General government - - 617,055
Public safety:

Police - - 775,380
Fire - - 5,527
Public works - - 328,648
Recreation - - 99,059
Library - - 77,029
Community development - - 538,213
Capital outlay - - 1,381,539
Debt service:

Principal retirement - - 60,287
Interest - - 2,013
Total expenditures - - 3,884,750

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 16,674 177,927 2,022
OTHER FINANCING SOURCES (USES):

Transfers in - - 322,000
Transfers out - (8,000) (10,349)
Inception of subscription liability - - -
Total other financing sources (uses) - (8,000) 311,651
NET CHANGES IN FUND BALANCES 177,927 8,674 313,673
FUND BALANCES (DEFICIT):

Beginning of year, as previously reported 1,967,327 772,697 (40,122) 8,656,893 Change with financial reporting entity
(major and non-major fund classification) (Note 16) - - 40,122 63,751 Beginning of year, as restated (Note 16) 772,697 1,967,327 - 8,720,644 End of year $ 2,145,254 $ 781,371 $ 9,034,317 - $
(Concluded)
Permanent Funds
City of Pacific Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
120
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 100 $ 100 $ 796 $ 696 Total revenues 100 100 796 696
NET CHANGE IN FUND BALANCE $ 100 $ 100 796 $ 696
FUND BALANCE:

Beginning of year 9,625
End of year $ 10,421
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Carillion Special Revenue Fund
For the Year Ended June 30, 2024
121
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 800 $ 800 $ 5,879 $ 5,079 Total revenues 800 800 5,879 5,079
NET CHANGE IN FUND BALANCE $ 800 $ 800 5,879 $ 5,079
FUND BALANCE:

Beginning of year 113,797
End of year $ 119,676
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Environmental Enhancement Special Revenue Fund
For the Year Ended June 30, 2024
122
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes
Franchise and other taxes $ 51,000 $ 47,000 $ 46,594 $ (406) Interest, rents, and concessions 1,500 2,000 4,517 2,517 Total revenues 52,500 49,000 51,111 2,111
EXPENDITURES:

Current:

General government 71,000 71,000 26,000 45,000
Capital outlay 10,000 10,000 - 10,000
Total expenditures 81,000 81,000 26,000 55,000
NET CHANGE IN FUND BALANCE $ (28,500) $ (32,000) 25,111 $ 57,111 FUND BALANCE:

Beginning of year 91,066
End of year $ 116,177
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Franchise PEG Special Revenue Fund
For the Year Ended June 30, 2024
123
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 1,000 $ 1,000 $ 4,953 $ 3,953 Other revenues 2,570 2,000 2,570 570
Total revenues 3,570 3,000 7,523 4,523
EXPENDITURES:

Current:

Library 68,589 88,589 17,424 71,165
Capital outlay - 12,619 53,986 (41,367)
Total expenditures 68,589 101,208 71,410 29,798
NET CHANGE IN FUND BALANCE $ (65,019) $ (98,208) (63,887) $ 34,321 FUND BALANCE:

Beginning of year 136,233
End of year $ 72,346
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Library Building & Equipment Special Revenue Fund
For the Year Ended June 30, 2024
124
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 3,000 $ 3,000 $ 16,939 $ 13,939 Total revenues 3,000 3,000 16,939 13,939
EXPENDITURES:

Capital outlay - 113,800 - 113,800
Total expenditures - 113,800 - 113,800
NET CHANGE IN FUND BALANCE $ 3,000 $ (110,800) 16,939 $ 127,739 FUND BALANCE:

Beginning of year 327,884
End of year $ 344,823
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Museum Improvement Special Revenue Fund
For the Year Ended June 30, 2024
125
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes
Business license tax $ 33,000 $ 33,000 $ 37,264 $ 4,264 Interest, rents, and concessions 350 350 1,751 1,401
Total revenues 33,350 33,350 39,015 5,665
EXPENDITURES:

Current:

General government 33,000 33,000 19,404 13,596
Total expenditures 33,000 33,000 19,404 13,596
NET CHANGE IN FUND BALANCE $ 350 $ 350 19,611 $ 19,261
FUND BALANCE:

Beginning of year 10,474
End of year $ 30,085
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Downtown Business District Special Revenue Fund
For the Year Ended June 30, 2024
126
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes
Transient occupancy taxes $ 588,000 $ 662,000 $ 555,504 $ (106,496) Interest, rents, and concessions 1,400 1,900 4,155 2,255 Total revenues 589,400 663,900 559,659 (104,241)
EXPENDITURES:

Current:

General government 488,000 662,000 567,201 94,799
Total expenditures 488,000 662,000 567,201 94,799
NET CHANGE IN FUND BALANCE $ 101,400 $ 1,900 (7,542) $ (9,442) FUND BALANCE:

Beginning of year 8,928
End of year $ 1,386
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Hospitality Improvement District Special Revenue Fund
For the Year Ended June 30, 2024
127
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 500 $ 3,000 $ 4,886 $ 1,886 Other revenues 40,000 49,000 47,033 (1,967)
Total revenues 40,500 52,000 51,919 (81)
EXPENDITURES:

Current:

Library 40,000 46,492 45,985 507
Total expenditures 40,000 46,492 45,985 507
NET CHANGE IN FUND BALANCE $ 500 $ 5,508 5,934 $ 426
FUND BALANCE:

Beginning of year 33,375
End of year $ 39,309
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Library Book Special Revenue Fund
For the Year Ended June 30, 2024
128
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 2,400 $ 3,200 $ 9,527 $ 6,327 Other revenues 19,500 20,203 20,203 -
Total revenues 21,900 23,403 29,730 6,327
EXPENDITURES:

Current:

Public safety:

Fire 22,000 22,000 5,527 16,473
Total expenditures 22,000 22,000 5,527 16,473
NET CHANGE IN FUND BALANCE $ (100) $ 1,403 24,203 $ 22,800 FUND BALANCE:

Beginning of year 171,430
End of year $ 195,633
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Fire Emergency Equipment Special Revenue Fund
For the Year Ended June 30, 2024
129
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 3,000 $ 15,000 $ 49,418 $ 34,418 Total revenues 3,000 15,000 49,418 34,418
EXPENDITURES:

Current:

General government - - 4,450 (4,450)
Capital outlay 81,325 1,063,136 223,963 839,173
Total expenditures 81,325 1,063,136 228,413 834,723
NET CHANGE IN FUND BALANCE $ (78,325) $ (1,048,136) (178,995) $ 869,141 FUND BALANCE:

Beginning of year 1,074,164
End of year $ 895,169
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual American Rescue Plan Act Special Revenue Fund
For the Year Ended June 30, 2024
130
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes
Sales and use taxes $ 753,178 $ 828,000 $ 785,820 $ (42,180) Interest, rents, and concessions 7,500 7,500 40,135 32,635 Total revenues 760,678 835,500 825,955 (9,545)
EXPENDITURES:

Capital outlay 786,088 1,806,924 943,822 863,102
Total expenditures 786,088 1,806,924 943,822 863,102
NET CHANGE IN FUND BALANCE $ (25,410) $ (971,424) (117,867) $ 853,557 FUND BALANCE:

Beginning of year 1,154,757
End of year $ 1,036,890
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Local Streets and Roads Special Revenue Fund
For the Year Ended June 30, 2024
131
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 415,317 $ 415,317 $ 396,720 $ (18,597) Interest, rents, and concessions 1,000 1,000 12,364 11,364 Total revenues 416,317 416,317 409,084 (7,233)
EXPENDITURES:

Current:

Public works 436,308 440,233 328,648 111,585
Capital outlay - 799 - 799
Total expenditures 436,308 441,032 328,648 112,384
NET CHANGE IN FUND BALANCE $ (19,991) $ (24,715) 80,436 $ 105,151 FUND BALANCE:

Beginning of year 180,685
End of year $ 261,121
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024
132
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 150 $ 150 $ 1,224 $ 1,074 Total revenues 150 150 1,224 1,074
NET CHANGE IN FUND BALANCE $ 150 $ 150 1,224 $ 1,074
FUND BALANCE:

Beginning of year 14,798
End of year $ 16,022
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Chautauqua Hall Special Revenue Fund
For the Year Ended June 30, 2024
133
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Charges for services $ 95,000 $ 85,000 $ 96,211 $ 11,211 Interest, rents, and concessions - - 8,980 8,980
Other revenues 2,000 2,000 22,806 20,806
Total revenues 97,000 87,000 127,997 40,997
EXPENDITURES:

Current:

Recreation 90,716 109,723 99,059 10,664
Capital outlay - 57,950 - 57,950
Total expenditures 90,716 167,673 99,059 68,614
NET CHANGE IN FUND BALANCE $ 6,284 $ (80,673) 28,938 $ 109,611 FUND BALANCE:

Beginning of year 195,032
End of year $ 223,970
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Lighthouse Maintenance & Improvement Special Revenue Fund For the Year Ended June 30, 2024
134
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 100 $ 500 $ 855 $ 355 Total revenues 100 500 855 355
NET CHANGE IN FUND BALANCE $ 100 $ 500 855 $ 355
FUND BALANCE:

Beginning of year 10,339
End of year $ 11,194
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Senior Housing Special Revenue Fund
For the Year Ended June 30, 2024
135
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 2,000 $ 28,000 $ 35,274 $ 7,274 Total revenues 2,000 28,000 35,274 7,274
NET CHANGE IN FUND BALANCE $ 2,000 $ 28,000 35,274 $ 7,274 FUND BALANCE:

Beginning of year 475,084
End of year $ 510,358
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CalHOME Reuse Special Revenue Fund
For the Year Ended June 30, 2024
136
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ - $ - $ 134 $ 134
Total revenues - - 134 134

EXCESS OF REVENUES OVER
EXPENDITURES - - 134 134
OTHER FINANCING USES:

Transfers out - - (1,753) (1,753)
Total other financing uses - - (1,753) (1,753)
NET CHANGE IN FUND BALANCE $ - $ - (1,619) $ (1,619)
FUND BALANCE:

Beginning of year 1,619
End of year $ -
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Small Business Grants Special Revenue Fund
For the Year Ended June 30, 2024
137
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Charges for services $ 10,000 $ 10,000 $ 6,013 $ (3,987) Interest, rents, and concessions - 600 2,217 1,617
Total revenues 10,000 10,600 8,230 (2,370)
EXPENDITURES:

Current:

Community development - 32,550 32,550 -
Total expenditures - 32,550 32,550 -
NET CHANGE IN FUND BALANCE $ 10,000 $ (21,950) (24,320) $ (2,370) FUND BALANCE:

Beginning of year 32,550
End of year $ 8,230
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Plan Maintenance Fee Special Revenue Fund
For the Year Ended June 30, 2024
138
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 35,620 $ 35,620 $ 42,502 $ 6,882 Total revenues 35,620 35,620 42,502 6,882
EXPENDITURES:

Current:

Library 14,700 19,700 13,620 6,080
Total expenditures 14,700 19,700 13,620 6,080
NET CHANGE IN FUND BALANCE $ 20,920 $ 15,920 28,882 $ 12,962 FUND BALANCE:

Beginning of year 119,714
End of year $ 148,596
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Poetry Promotion Special Revenue Fund
For the Year Ended June 30, 2024
139
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 1,000 $ 1,000 $ 1,068 $ 68 Total revenues 1,000 1,000 1,068 68

EXCESS OF REVENUES OVER
EXPENDITURES 1,000 1,000 1,068 68
OTHER FINANCING USES:

Transfers in 15,000 8,000 8,000 -
Total other financing uses 15,000 8,000 8,000 -
NET CHANGE IN FUND BALANCE $ 16,000 $ 9,000 9,068 $ 68
FUND BALANCE:

Beginning of year 7,340
End of year $ 16,408
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Yount Income Special Revenue Fund
For the Year Ended June 30, 2024
140
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 150,000 $ 150,000 $ 175,516 $ 25,516 Interest, rents, and concessions 2,000 2,000 - (2,000)
Total revenues 152,000 152,000 175,516 23,516
EXPENDITURES:

Current:

Public safety:

Police 463,860 482,000 479,452 2,548
Total expenditures 463,860 482,000 479,452 2,548

EXCESS OF REVENUES OVER
EXPENDITURES (311,860) (330,000) (303,936) 26,064
OTHER FINANCING USES:

Transfers in 314,000 314,000 314,000 -
Total other financing uses 314,000 314,000 314,000 -
NET CHANGE IN FUND BALANCE $ 2,140 $ (16,000) 10,064 $ 26,064 FUND BALANCE:

Beginning of year 63,662
End of year $ 73,726
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Safety Augmentation Special Revenue Fund
For the Year Ended June 30, 2024
141
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 247,000 $ 247,000 $ 195,322 $ (51,678) Interest, rents, and concessions 750 1,318 5,869 4,551
Total revenues 247,750 248,318 201,191 (47,127)
EXPENDITURES:

Current:

Public safety:

Police 277,470 273,756 174,774 98,982
Capital outlay - - 13,439 (13,439)
Debt service:

Principal retirement - - 60,287 (60,287)
Interest and fiscal charges - - 2,013 (2,013)
Total expenditures 277,470 273,756 250,513 23,243
NET CHANGE IN FUND BALANCE $ (29,720) $ (25,438) (49,322) $ (23,884) FUND BALANCE:

Beginning of year 98,236
End of year $ 48,914
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Supplemental Law Enforcement Special Revenue Fund
For the Year Ended June 30, 2024
142
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 13,000 $ 13,000 $ 15,655 $ 2,655
Interest, rents, and concessions 200 200 2,198 1,998
Total revenues 13,200 13,200 17,853 4,653
NET CHANGE IN FUND BALANCE $ 13,200 $ 13,200 17,853 $ 4,653 FUND BALANCE:

Beginning of year 21,938
End of year $ 39,791
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Vehicle Abandonment Special Revenue Fund
For the Year Ended June 30, 2024
143
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 1,000 $ 1,000 $ 14,459 $ 13,459 Other revenues 40,000 40,000 - (40,000)
Total revenues 41,000 41,000 14,459 (26,541)
EXPENDITURES:

Capital outlay - 26,550 25,500 1,050
Total expenditures - 26,550 25,500 1,050
NET CHANGE IN FUND BALANCE $ 41,000 $ 14,450 (11,041) $ (25,491) FUND BALANCE:

Beginning of year 25,987
End of year $ 14,946
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Strong Disbursements Special Revenue Fund
For the Year Ended June 30, 2024
144
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 5,000 $ 46,695 $ 42,799 $ (3,896) Other revenues - 47,300 25,936 (21,364)
Total revenues 5,000 93,995 68,735 (25,260)
EXPENDITURES:

Current:

Community development 203,666 208,054 137,063 70,991
Total expenditures 203,666 208,054 137,063 70,991
NET CHANGE IN FUND BALANCE $ (198,666) $ (114,059) (68,328) $ 45,731 FUND BALANCE:

Beginning of year 593,880
End of year $ 525,552
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Special Revenue Fund
For the Year Ended June 30, 2024
145
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 1,200 $ 1,200 $ 6,839 $ 5,639 Total revenues 1,200 1,200 6,839 5,639
NET CHANGE IN FUND BALANCE $ 1,200 $ 1,200 6,839 $ 5,639 FUND BALANCE:

Beginning of year 82,644
End of year $ 89,483
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Coastal Conservency Grant Special Revenue Fund
For the Year Ended June 30, 2024
146
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ - $ - $ 496,522 $ 496,522
Interest, rents, and concessions - - (9,102) (9,102)
Total revenues - - 487,420 487,420
EXPENDITURES:

Current:

Public safety:

Police - 64,375 121,154 (56,779)
Community development 591,896 445,263 368,600 76,663
Total expenditures 591,896 509,638 489,754 19,884
NET CHANGE IN FUND BALANCE $ (591,896) $ (509,638) (2,334) $ 507,304 FUND BALANCE (DEFICIT):

Beginning of year 683
End of year $ (1,651)
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Operating Grant Special Revenue Fund
For the Year Ended June 30, 2024
147
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes
Sales and use taxes $ 369,839 $ 369,839 $ 386,084 $ 16,245 Interest, rents, and concessions 2,500 2,500 21,394 18,894 Total revenues 372,339 372,339 407,478 35,139
EXPENDITURES:

Capital outlay 505,049 608,491 103,442 505,049
Total expenditures 505,049 608,491 103,442 505,049
NET CHANGE IN FUND BALANCE $ (132,710) $ (236,152) 304,036 $ 540,188 FUND BALANCE:

Beginning of year 341,174
End of year $ 645,210
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual RMRA Special Revenue Fund
For the Year Ended June 30, 2024
148
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
OTHER FINANCING USES:

Transfers out - - (596) (596)
Total other financing uses - - (596) (596)
NET CHANGE IN FUND BALANCE $ - $ - (596) $ (596)
FUND BALANCE:

Beginning of year 596
End of year $ -
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Congestion Relief Special Revenue Fund
For the Year Ended June 30, 2024
149
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 500 $ 500 $ 2,664 $ 2,164 Total revenues 500 500 2,664 2,164
EXPENDITURES:

Capital outlay - 17,387 17,387 -
Total expenditures - 17,387 17,387 -
NET CHANGE IN FUND BALANCE $ 500 $ (16,887) (14,723) $ 2,164 FUND BALANCE:

Beginning of year 36,856
End of year $ 22,133
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual McIndoo Donation Special Revenue Fund
For the Year Ended June 30, 2024
150
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ - $ - $ 2,508 $ 2,508
Total revenues - - 2,508 2,508
NET CHANGE IN FUND BALANCE $ - $ - 2,508 $ 2,508
FUND BALANCE:

Beginning of year 23,629
End of year $ 26,137
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ASBS Grant Special Revenue Fund
For the Year Ended June 30, 2024
151
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 10,000 $ 10,000 $ 27,506 $ 17,506 Other revenues - 1,000 15,690 14,690
Total revenues 10,000 11,000 43,196 32,196
NET CHANGE IN FUND BALANCE $ 10,000 $ 11,000 43,196 $ 32,196 FUND BALANCE:

Beginning of year 522,441
End of year $ 565,637
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Library Endowment Trust Permanent Fund
For the Year Ended June 30, 2024
152
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Charges for services $ 75,000 $ 75,000 $ 74,216 $ (784) Interest, rents, and concessions 35,000 36,900 103,711 66,811 Total revenues 110,000 111,900 177,927 66,027
NET CHANGE IN FUND BALANCE $ 110,000 $ 111,900 177,927 $ 66,027 FUND BALANCE:

Beginning of year 1,967,327
End of year $ 2,145,254
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Cemetery Endowment Trust Permanent Fund
For the Year Ended June 30, 2024
153
PGCC 4-2-25

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest, rents, and concessions $ 15,000 $ 8,000 $ 16,674 $ 8,674 Total revenues 15,000 8,000 16,674 8,674

EXCESS OF REVENUES OVER
EXPENDITURES 15,000 8,000 16,674 8,674
OTHER FINANCING USES:

Transfers out (15,000) (8,000) (8,000) -
Total other financing uses (15,000) (8,000) (8,000) -
NET CHANGE IN FUND BALANCE $ - $ - 8,674 $ 8,674
FUND BALANCE:

Beginning of year 772,697
End of year $ 781,371
City of Pacific Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Yount Trust Permanent Fund
For the Year Ended June 30, 2024
154
PGCC 4-2-25

155
City of Pacific Grove, California
Internal Service Funds
The Internal Service Fund accounts for financing of goods and services provided by one department to other departments of the City on a cost-reimbursement basis.

Internal Service Funds include:

Employee Benefit Fund - Accumulates contributions from departmental payroll processes and internal service charge transfers to fund and pay for a variety of employee benefit costs such as retiree health, dental, unemployment insurance, life/disability insurance, and temporary employee social security replacement costs.

Workers' Compensation Fund - Gathers workers compensation rates from employee payroll records, along with claim reimbursements. Any annual excess or deficiencies are charged through a separate internal service charge. This fund supports workers comp. program administration costs, insurance premiums, claims expense, IIPP costs.

Liability Insurance Fund - Accounts for contributions from departmental budgets to cover the cost of general liability claims, related legal costs, and annual insurance premiums.

Berwick Park and Whale Statue
PGCC 4-2-25

156
PGCC 4-2-25

Employee Workers' Liability
Benefit Compensation Insurance
Fund Fund Fund Total
ASSETS
Current assets:

Cash and investments 172,136 $ 676,305 $ 593,124 $ 1,441,565 $ Restricted cash and investments - 55,151 15,086 70,237
Accounts receivable, net - 14,079 - 14,079
Total current assets 172,136 745,535 608,210 1,525,881
Total assets 172,136 745,535 608,210 1,525,881

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions - 44,976 66,393 111,369
Related to OPEB - 1,044 697 1,741
Total deferred outflows of resources - 46,020 67,090 113,110

LIABILITIES
Current liabilities:

Accounts payable 12,616 658 5,000 18,274
Due to other funds - - - -
Claims payable, due within one year - 146,014 10,491 156,505 Compensated absences, due within one year - 83 - 83
Long-term debt, due within one year - - - -
Total OPEB liability, due within one year - 480 325 805 Total current liabilities 12,616 147,235 15,816 175,667 Noncurrent liabilities:

Claims payable, due in more than one year - 292,467 25,459 317,926 Compensated absences, due in more than one year - 250 - 250 Total OPEB liability, due in more than one year - 9,515 6,338 15,853 Net pension liability - 123,566 182,409 305,975
Total noncurrent liabilities - 425,798 214,206 640,004
Total liabilities 12,616 573,033 230,022 815,671

DEFERRED INFLOWS OF RESOURCES
Related to pensions - 8,615 12,717 21,332
Related to OPEB - 6,164 4,109 10,273
Total deferred inflows of resources - 14,779 16,826 31,605

NET POSITION
Restricted:

Insurance reserve - 55,151 15,086 70,237
Unrestricted 159,520 148,592 413,366 721,478
Total net position $ 203,743 159,520 $ 428,452 $ 791,715 $ City of Pacific Grove
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
157
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158
PGCC 4-2-25

Employee Workers' Liability
Benefit Compensation Insurance
Fund Fund Fund Total
OPERATING REVENUES:

Charges for services 341,319 $ 535,846 $ 1,137,432 $ 2,014,597 $ Total operating revenues 535,846 341,319 1,137,432 2,014,597 OPERATING EXPENSES:

Contractual services and utilities - 749,959 390,298 1,140,257 Personnel 273,212 (98,917) (142,426) 31,869
Supplies and materials - - 216,150 216,150
Total operating expenses 273,212 651,042 464,022 1,388,276 OPERATING INCOME (LOSS) 68,107 (115,196) 673,410 626,321 NONOPERATING REVENUES (EXPENSES):

Investment earnings (loss) 7,002 32,673 6,008 45,683
Interest expense and bank charges (9,246) - - (9,246)
Total nonoperating revenues (expenses) (2,244) 32,673 6,008 36,437

INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS 65,863 (82,523) 679,418 662,758 CHANGES IN NET POSITION 65,863 (82,523) 679,418 662,758 NET POSITION (DEFICIT):

Beginning of year 93,657 286,266 (250,966) 128,957
End of year $ 159,520 $ 203,743 $ 428,452 $ 791,715
City of Pacific Grove
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2024
159
PGCC 4-2-25

Employee Workers' Liability
Benefit Compensation Insurance
Fund Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users $ 710,576 341,319 $ 1,137,432 $ 2,189,327 $ Payments to suppliers - 322,013 469,878 791,891
Payments to employees (267,278) (32,977) (39,064) (339,319) Cash paid for insurance claims - (910,801) (868,042) (1,778,843) Net cash provided by operating activities 74,041 88,811 700,204 863,056

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund transactions - - (108,002) (108,002)
Net cash (used in)
noncapital financing activities - - (108,002) (108,002) CASH FLOWS FROM INVESTING ACTIVITIES:

Receipts from (payments on) loans receivable
Payment on the bank fee (9,246) - - (9,246)
Investment income received 7,002 32,673 6,008 45,683
Net cash provided by (used in) investing activities (2,244) 32,673 6,008 36,437 Net change in cash and investments 71,797 121,484 598,210 791,491 CASH AND CASH INVESTMENTS:

Beginning of year 100,339 609,972 10,000 720,311
End of year $ 172,136 $ 731,456 $ 608,210 $ 1,511,802
City of Pacific Grove
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
160
PGCC 4-2-25

Employee Workers' Liability
Benefit Compensation Insurance
Fund Fund Fund Total

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

Operating income (loss) 68,107 $ (115,196) $ 673,410 $ 626,321 $ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Change in operating assets, liabilities, and deferred items:

Accounts receivable - 174,730 - 174,730
Prepaid items - 271,972 461,326 733,298
Pension deferred outflows - 72,254 106,663 178,917
OPEB deferred outflows - 725 482 1,207
Accounts payable 5,934 (10,861) (5,364) (10,291)
Payroll and related liabilities - - - -
Claims payable - (110,801) (253,042) (363,843)
Net pension liability - (171,829) (253,655) (425,484)
Total OPEB liability - (3,495) (2,330) (5,825)
Compensated absences - (4,310) (3,810) (8,120)
Pension deferred inflows - (17,158) (25,329) (42,487)
OPEB deferred inflows - 2,780 1,853 4,633
Total adjustments 5,934 204,007 26,794 236,735
Net cash provided by operating activities $ 88,811 74,041 $ 700,204 $ 863,056 $ Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2024
City of Pacific Grove
161
PGCC 4-2-25

162
PGCC 4-2-25

Contents Pages
Financial Trends
164-173
Revenue Capacity
174-179
Debt Capacity
180-187
Demographic and Economic Information
188-190
Operating Information
191-192
City of Pacific Grove, California
These tables offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place.

These tables contain service and infrastructure data to help the reader understand how the information in the city's financial report relates to the services the city provides and the activities it performs.

Sources:

Statistical Section
This part of the City of Pacific Grove's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health. In contrast to the Financial Section, the Statistical Section is not subject to independent audit.

These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Unless otherwise noted, the information in these tables is derived from the annual comprehensive financial reports for the relevant year.

These schedules contain information to help the reader assess the city's most significant local revenue sources, including property, sales and transient occupancy taxes.

These tables present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future. 163
PGCC 4-2-25

City of Pacific Grove
Net Position By Component
Last Ten Fiscal Years
2015 2016 2017 2018 2019
Governmental activities:

Net investment in capital assets 22,263,317 $ $ 22,741,849 $ 25,668,607 $ 27,258,794 $ 27,964,295 Restricted 6,023,419 6,193,527 6,430,258 6,880,621 9,308,564 Unrestricted (deficit) (28,355,257) (36,999,457) (35,892,155) (37,782,965) (37,369,113) Total governmental activities net position $ (68,521) $ (8,064,081) $ (3,793,290) $ (3,643,550) $ (96,254) Business-type activities:

Net investment in capital assets $ 12,181,977 $ 12,525,066 $ 13,220,660 $ 16,268,992 $ 16,984,023 Restricted 295,090 296,448
Unrestricted 6,059,829 5,640,007 6,398,946 6,136,327 6,500,790 Total business-type activities net position $ 18,241,806 $ 18,165,073 $ 19,619,606 $ 22,700,409 $ 23,781,261 Primary government:

Net investment in capital assets $ 34,445,294 $ 35,266,915 $ 38,889,267 $ 43,527,786 $ 44,948,318 Restricted 6,023,419 6,193,527 6,430,258 7,175,711 9,605,012 Unrestricted (deficit) (22,295,428) (31,359,450) (29,493,209) (31,646,638) (30,868,323) Total primary government net position $ 18,173,285 $ 10,100,992 $ 15,826,316 $ 19,056,859 $ 23,685,007 Notes:

Source: City of Pacific Grove Finance Department
Fiscal Year Ended June 30
The Unrestricted net position is net of the City's pension obligation, which has grown steadily over the years. $22 $23
$26 $27 $28
$33
$38 $40 $42 $43
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Investment in Fixed Assets - Governmental Activities (In Millions) 164
PGCC 4-2-25

City of Pacific Grove
Net Position By Component (Continued)
Last Ten Fiscal Years
2020 2021 2022 2023 2024
Governmental activities:

Net investment in capital assets 32,572,615 $ $ 37,925,984 $ 39,813,126 $ 42,333,875 $ 42,670,667 Restricted 8,377,320 7,628,868 7,759,547 10,055,437 10,470,523 Unrestricted (deficit) (41,445,942) (42,610,612) (48,074,964) (32,183,453) (29,485,067) Total governmental activities net position $ (496,007) $ 2,944,240 $ (502,291) $ 20,205,859 $ 23,656,123 Business-type activities:

Net investment in capital assets $ 17,471,699 $ 21,623,880 $ 21,515,536 $ 21,619,974 $ 21,252,446 Restricted 296,448 296,448 296,448 298,348 296,448
Unrestricted 6,746,442 3,834,349 5,298,729 6,932,826 10,131,767 Total business-type activities net position $ 24,514,589 $ 25,754,677 $ 27,110,713 $ 28,851,148 $ 31,680,661 Primary government:

Net investment in capital assets $ 50,044,314 $ 59,549,864 $ 61,328,662 $ 63,953,849 $ 63,923,113 Restricted 8,673,768 7,925,316 8,055,995 10,353,785 10,766,971 Unrestricted (deficit) (34,699,500) (38,776,263) (42,776,235) (25,250,627) (19,353,300) Total primary government net position $ 24,018,582 $ 28,698,917 $ 26,608,422 $ 49,057,007 $ 55,336,784 Fiscal Year Ended June 30
$12 $13 $13
$16 $17 $17
$22 $22 $22 $21
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Investment in Fixed Assets - Proprietary Activities (In Millions) 165
PGCC 4-2-25

City of Pacific Grove
Changes in Net Position
Last Ten Fiscal Years
2015 2016 2017 2018 2019
Expenses
Governmental activities:

General government $ 2,320,217 $ 2,768,729 $ 2,738,294 $ 3,025,245 $ 3,580,752 Public safety 8,675,956 7,144,172 10,117,543 10,133,896 10,713,679 Public works 3,357,831 4,057,715 4,136,425 4,110,946 4,246,913 Recreation 439,368 586,436 684,848 737,279 924,517
Library 844,521 662,076 988,284 920,946 1,166,226
Museum 195,868 258,591 277,538 255,915 319,386
Community Development 2,246,289 3,512,657 3,086,903 2,897,897 2,834,404 Interest and fiscal charges on long-term debt 1,323,094 1,209,972 1,068,271 963,134 854,804 Total governmental activities expenses 17,688,915 21,914,577 23,098,106 23,045,258 24,640,681 Business-type activities:

Cemetery 295,388 231,261 293,068 370,747 436,338
Sewer 1,761,965 1,703,290 1,751,842 2,367,950 2,080,696 Local Water Project - - - 190,977 425,525
Golf 811,666 420,788 349,811 371,646 894,206
Total business-type activities expenses 2,804,892 2,419,466 2,394,721 3,301,320 3,836,765 Total primary government expenses $ 20,493,807 $ 24,334,043 $ 25,492,827 $ 26,346,578 $ 28,477,446 Program Revenues
Governmental activities:

Charges for services:

General government $ 874,861 $ 1,398,707 $ 1,338,655 $ 1,596,481 $ 1,505,113 Public safety 10,405 9,552 11,222 33,363 37,570
Public works 35,743 45,792 32,993 43,434 17,860
Recreation 322,363 295,341 377,778 403,889 417,437
Library 17,601 18,810 19,925 16,364 13,177
Community Development 564,954 578,575 664,133 544,275 745,737 Operating grants and contributions 960,553 2,354,025 4,105,908 856,196 824,805 Capital grants and contributions 104,677 36,050 96,383 424,950 347,095 Total governmental activities program revenues 2,891,513 4,736,496 6,646,997 3,918,952 3,908,794 Business-type activities:

Charges for services:

Cemetery 191,497 200,527 288,712 452,283 459,761
Local Water Project - - - 192,787 484,603
Sewer 2,908,507 2,967,074 3,139,222 3,244,931 3,317,734 Golf 405,552 386,916 354,093 333,534 426,839
Operating grants and contributions - - - - -
Capital grants and contributions 48,405 152,830 - 2,353,823 - Total business-type activities program revenues 3,562,991 3,698,317 3,782,027 6,577,358 4,688,937 Total primary government program revenues 6,454,504 8,434,813 10,429,024 10,496,310 8,597,731 Net (expense)/revenue:

Governmental activities (14,797,402) (17,178,081) (16,451,109) (19,126,306) (20,731,887) Business-type activities 758,099 1,278,851 1,387,306 3,276,038 852,172 Total primary government net (expense)/revenue (14,039,303) $ $ (15,899,230) $ (15,063,803) $ (15,850,268) $ (19,879,715) Source: City of Pacific Grove Finance Department
Fiscal Year Ended June 30
166
PGCC 4-2-25

City of Pacific Grove
Changes in Net Position (Continued)
Last Ten Fiscal Years
2020 2021 2022 2023 2024
Expenses
Governmental activities:

General government $ 4,128,554 $ 3,957,697 $ 5,800,659 $ 3,241,604 $ 6,440,878 Public safety 12,447,605 12,345,886 16,706,460 7,895,196 15,217,138 Public works 5,105,747 4,916,879 6,611,056 2,809,143 5,230,431 Recreation 894,381 765,613 1,117,468 554,042 1,562,919
Library 864,956 1,496,673 1,437,706 741,061 1,248,197
Museum 340,375 262,137 431,708 223,551 360,431
Community Development 3,150,193 3,340,137 4,075,001 1,426,245 3,666,942 Interest and fiscal charges on long-term debt 726,958 676,055 580,350 470,144 476,107 Total governmental activities expenses 28,290,486 27,129,360 36,760,408 17,360,986 34,203,043 Business-type activities:

Cemetery 498,927 533,247 610,773 469,815 452,270
Sewer 2,474,580 2,178,853 2,842,577 1,045,865 1,224,324 Local Water Project 957,886 881,378 1,048,075 2,136,404 2,042,255 Golf 286,074 342,872 281,320 282,177 468,767
Total business-type activities expenses 4,251,787 3,902,030 4,782,745 3,934,261 4,187,616 Total primary government expenses $ 32,542,273 $ 31,031,390 $ 41,543,153 $ 21,295,247 $ 38,390,659 Program Revenues
Governmental activities:

Charges for services:

General government $ 1,435,262 $ 1,474,806 $ 1,720,294 $ 1,439,808 $ 1,210,812 Public safety 25,410 31,040 31,244 593,308 599,859
Public works 323 1,649 2,646 21,550 1,639
Recreation 337,926 295,233 390,314 452,660 599,573
Library 34,477 18,506 34,443 2,132 2,374
Community Development 660,429 939,297 882,556 1,134,102 1,406,529 Operating grants and contributions 891,298 1,200,286 2,526,917 2,689,705 1,803,700 Capital grants and contributions 1,976,852 4,715,110 2,248,708 1,109,485 474,137 Total governmental activities program revenues 5,351,636 8,686,268 7,837,122 9,958,525 6,098,623 Business-type activities:

Charges for services:

Cemetery 634,039 481,915 800,923 773,195 716,931
Local Water Project 524,040 597,835 598,195 597,011 1,026,820 Sewer 3,407,708 3,501,697 3,565,896 3,693,156 3,829,192 Golf 287,603 361,704 611,397 791,881 745,216
Operating grants and contributions - 9,800 - - -
Capital grants and contributions - - - - -
Total business-type activities program revenues 4,701,266 5,105,075 5,576,411 5,855,243 6,318,159 Total primary government program revenues 10,052,902 13,791,343 13,413,533 13,297,993 12,416,782 Net (expense)/revenue:

Governmental activities (22,938,850) (18,443,092) (28,923,286) (9,918,236) (28,104,420) Business-type activities 449,479 1,203,045 793,666 1,920,982 2,130,543 Total primary government net (expense)/revenue (22,489,371) $ $ (17,240,047) $ (28,129,620) $ (7,997,254) $ (25,973,877) Fiscal Year Ended June 30
167
PGCC 4-2-25

City of Pacific Grove
Changes in Net Position (Continued)
Last Ten Fiscal Years
2015 2016 2017 2018 2019
General Revenues and Other Changes in Net Assets
Governmental activities:

Taxes
Property taxes $ 5,836,174 $ 6,226,267 $ 6,557,824 $ 6,851,928 $ 7,306,184 Sales and use taxes 3,534,495 3,325,809 4,159,401 4,075,744 5,139,045 Franchise taxes 975,090 1,041,653 915,094 1,082,574 1,226,524 Transient occupancy taxes 4,998,885 5,364,317 5,829,610 6,656,849 6,796,087 Utility users taxes 1,428,360 1,594,143 1,593,887 1,688,876 1,641,172 Business license tax 359,408 341,071 402,881 381,810 370,655 Other taxes 102,627 146,945 125,487 121,192 110,554
Unrestricted Investment earnings 257,602 253,846 74,222 142,104 628,116 Miscellaneous or Other revenues 837,458 947,392 984,164 552,320 1,060,846 Transfers - 5,301 - 356,016 -
Total governmental activities 18,330,099 19,246,744 20,642,570 21,909,413 24,279,183 Business-type activities:

Unrestricted Investment earnings 26,693 67,318 9,754 42,764 206,178 Miscellaneous or Other revenues 102,878 113,560 57,473 118,017 22,502 Transfers - (5,301) - (356,016) -
Total business-type activities 129,571 175,577 67,227 (195,235) 228,680 Total primary government $ 18,459,670 $ 19,422,321 $ 20,709,797 $ 21,714,178 $ 24,507,863 Change in Net Position
Governmental activities $ 3,532,697 $ 2,068,663 $ 4,191,461 $ 2,783,107 $ 3,547,296 Business-type activities 887,670 1,454,428 1,454,533 3,080,803 1,080,852 Total primary government $ 4,420,367 $ 3,523,091 $ 5,645,994 $ 5,863,910 $ 4,628,148 Source: City of Pacific Grove Finance Department
Fiscal Year Ended June 30
$5.8 $6.2 $6.6 $6.9 $7.3 $7.6 $8.2 $8.6 $9.3 $10.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Property Tax Revenues - In Millions
168
PGCC 4-2-25

City of Pacific Grove
Changes in Net Position (Continued)
Last Ten Fiscal Years
2020 2021 2022 2023 2024
General Revenues and Other Changes in Net Assets
Governmental activities:

Taxes
Property taxes $ 7,632,399 $ 8,191,673 $ 8,573,969 $ 9,330,981 $ 10,001,561 Sales and use taxes 4,765,472 5,000,873 5,630,320 6,734,940 7,146,935 Franchise taxes 1,176,215 1,392,700 1,489,888 1,620,136 1,682,562 Transient occupancy taxes 5,310,063 3,978,577 6,821,183 7,105,256 7,375,869 Utility users taxes 1,643,614 1,858,652 1,940,677 2,097,934 2,118,068 Business license tax 396,533 361,674 371,310 425,691 644,911 Other taxes 110,823 222,242 231,389 165,613 177,881
Unrestricted Investment earnings 555,482 22,612 (402,304) 345,550 1,443,592 Miscellaneous or Other revenues 942,680 854,336 1,400,243 1,143,687 1,150,805 Transfers (18,676) - - (162,500) (187,500)
Total governmental activities 22,514,605 21,883,339 26,056,675 28,807,288 31,554,684 Business-type activities:

Unrestricted Investment earnings 259,560 4,852 (18,409) 151,223 511,470 Miscellaneous or Other revenues 5,613 32,191 - - -
Transfers 18,676 - - 162,500 187,500
Total business-type activities 283,849 37,043 (18,409) 147,810 698,970 Total primary government $ 22,798,454 $ 21,920,382 $ 26,038,266 $ 28,955,098 $ 32,253,654 Change in Net Position
Governmental activities (424,245) $ $ 3,440,247 $ (2,866,611) $ 19,736,527 $ 3,450,264 Business-type activities 733,328 1,240,088 775,257 2,068,792 2,829,513 Total primary government $ 309,083 $ 4,680,335 $ (2,091,354) $ 21,805,319 $ 6,279,777 Fiscal Year Ended June 30
$5.0 $5.4 $5.8 $6.7 $6.8
$5.3
$4.0
$6.8 $7.1 $7.4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Transient Occupancy Tax Revenues - In Millions
169
PGCC 4-2-25

City of Pacific Grove
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2015 2016 2017 2018 2019
General Fund
Nonspendable
Prepaid assets 25,878 $ 27,904 $ $ - $ 31,373 210,824 $ Leases Receivable / Permanent Funds - - - - -
Assigned / Committed 240,922 261,771 279,660 286,638 268,962 Unassigned 7,956,937 9,632,848 11,352,442 11,365,650 11,230,241 Total General Fund $ 8,223,737 $ 9,922,523 $ 11,632,102 $ 11,863,112 $ 11,530,576 All other governmental funds
Unreserved, undesignated, reported in:

Nonspendable
Prepaid assets $ 4,215 $ - $ - $ - $ -
Leases Receivable - - - - -
Loans Receivable - - - - -
Permanent funds 2,643,651 2,761,263 2,855,521 2,899,737 3,029,024 Restricted
Social service programs 507,885 622,022 549,372 704,968 832,061 Public safety 377,053 482,400 772,241 908,239 842,518
Community development 1,801,999 1,786,526 2,057,868 2,120,819 3,414,820 Lost revenue recovery - - - - -
Street improvements 179,252 570 104,510 223,651 1,190,141 Debt service 63,579 90,746 90,746 23,207 -
Assigned
Capital projects - - - - -
Unassigned (32,658) 157,765 19,306 (57,994) (86,180)
Total all other governmental funds $ 5,544,976 $ 5,901,292 $ 6,449,564 $ 6,822,627 $ 9,222,384 Source: City of Pacific Grove Finance Department
Fiscal Year Ended June 30
$8.2 $9.9 $11.6 $11.9 $11.5 $9.8 $10.0
$12.2
$15.0
$17.6
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Available General Fund Reserves (In Millions)
170
PGCC 4-2-25

City of Pacific Grove
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Continued)
2020 2021 2022 2023 2024
General Fund
Nonspendable
Prepaid assets $ - $ - $ - $ 18,486 $ 17,099
Leases Receivable / Permanent Funds - - 19,762 - -
Assigned / Committed 100,398 97,042 85,816 - 12,033,000 Unassigned 9,713,336 9,910,606 12,129,809 15,006,867 5,531,689 Total General Fund $ 9,813,734 $ 10,007,648 $ 12,235,387 $ 15,025,353 $ 17,581,788 All other governmental funds
Unreserved, undesignated, reported in:

Nonspendable
Prepaid assets $ - $ - $ 26,300 $ - $ -
Leases Receivable - - 792 - -
Loans Receivable - - - 1,313,168 -
Permanent funds 3,129,132 3,190,775 3,166,699 3,262,465 3,492,262 Restricted
Social service programs 723,787 748,183 610,617 732,292 1,261,146 Public safety 808,626 764,767 418,637 355,266 358,064
Community development 2,424,125 1,632,662 1,630,814 1,586,315 2,411,089 Lost revenue recovery - - 293,369 1,074,164 895,169
Street improvements 1,291,650 1,292,481 1,604,411 1,676,616 1,943,221 Debt service - - - - -
Assigned
Capital projects - - - 22,626 360,196
Unassigned (9,020) (8,349) (22,553) (40,122) (350,967)
Total all other governmental funds $ 8,368,300 $ 7,620,519 $ 7,729,086 $ 9,982,790 $ 10,370,180 Fiscal Year Ended June 30
$5.5 $5.9 $6.4 $6.8
$9.2 $8.4 $7.6 $7.7
$10.0 $10.4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Designated Reserves Other Govt Funds (In Millions)
171
PGCC 4-2-25

City of Pacific Grove
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
2015 2016 2017 2018 2019
Revenues
Taxes $ 17,235,039 $ 19,584,184 18,040,205 $ 20,858,973 $ 22,590,221 $ Intergovernmental revenues 786,672 4,109,269 2,129,066 1,191,898 1,049,471 Licenses, permits, and impact fees 440,403 576,779 481,304 521,403 547,193 Fines and forfeitures 49,714 110,665 127,740 282,841 169,534 Charges for services 1,062,829 1,689,714 1,454,936 1,734,163 1,854,406 Interest, rents, and concessions 489,037 297,620 467,624 371,272 852,787 Contributions - - - - -
Other revenues 901,452 1,181,216 803,453 943,496 1,073,162 Total revenues 20,965,146 23,882,091 27,171,684 25,904,046 28,136,774 Expenditures
General government 2,317,327 2,453,176 2,522,818 2,964,942 3,442,825 Public safety
Police 4,960,868 6,097,399 5,345,441 6,599,789 6,955,766 Fire 2,296,708 2,998,969 2,647,804 3,354,865 3,345,523
Public works 2,951,525 3,294,064 3,298,160 3,521,686 3,463,725 Recreation 413,832 594,636 516,486 678,454 837,231
Library 677,900 895,836 781,275 916,031 1,138,981
Museum 190,271 229,053 241,227 251,422 308,156
Community development 2,319,204 2,798,269 3,258,093 2,882,752 2,763,667 Capital Outlay 952,906 3,525,129 1,148,160 2,426,177 1,985,711 Debt Service
Principal 1,264,632 1,250,399 1,170,427 1,097,822 960,277 Interest and fiscal charges 765,673 924,034 834,601 962,049 1,014,752 Total expenditures 19,110,846 21,832,290 24,993,166 25,655,989 26,216,614 Excess of revenues
over (under) expenditures 1,854,300 2,049,801 2,178,518 248,057 1,920,160 Other financing sources (uses)
Loans Received - - - 147,061 -
Transfers in 753,277 906,787 621,455 989,603 2,423,254
Transfers out (753,277) (901,486) (621,455) (633,587) (2,423,254) Proceeds from sale of assets - - - - -
Inception of subscription liabilities - - - - -
Total other financing sources (uses) 5,301 - 356,016 - 147,061 Net change in fund balances $ 1,854,300 $ 2,055,102 $ 2,178,518 $ 604,073 $ 2,067,221 Total Expenditures $ 19,110,846 $ 21,832,290 $ 24,993,166 $ 25,655,989 $ 26,216,614 Capitalized Portion of Capital Outlay 1,411,285 1,006,089 3,525,129 2,350,159 1,984,274 Total Non-Capitalized Expenditures $ 17,699,561 $ 20,826,201 $ 21,468,037 $ 23,305,830 $ 24,232,340 Debt Service: Principal & Interest $ 2,030,305 $ 2,085,000 $ 2,094,461 $ 2,059,871 $ 1,975,029 Debt service as a % of noncapital expenditures 11% 10% 10% 9% 8% Source: City of Pacific Grove Finance Department
Fiscal Year Ended June 30
172
PGCC 4-2-25

City of Pacific Grove
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (Continued)
2020 2021 2022 2023 2024
Revenues
Taxes 21,035,119 $ 21,006,391 $ 25,058,736 $ 27,480,551 $ 29,147,787 $ Intergovernmental revenues 1,111,037 5,320,214 4,419,951 3,228,593 1,740,949 Licenses, permits, and impact fees 576,735 873,727 913,160 1,083,985 1,322,285 Fines and forfeitures 179,797 36,984 37,397 460,058 314,242 Charges for services 1,609,729 1,617,182 1,964,792 1,825,889 1,913,938 Interest, rents, and concessions 781,062 260,008 (125,810) 602,777 1,671,084 Contributions 1,728,705 333,646 271,527 - -
Other revenues 799,307 1,267,634 1,614,435 2,571,845 1,269,651 Total revenues 27,821,491 30,715,786 34,154,188 37,253,698 37,379,936 Expenditures
General government 3,518,628 3,452,693 4,162,716 4,882,900 5,924,240 Public safety
Police 7,098,044 6,959,934 7,999,969 8,350,094 8,625,874 Fire 3,512,675 3,823,118 3,979,967 4,392,833 4,514,064
Public works 3,731,449 3,511,330 4,047,910 4,420,912 4,728,417 Recreation 707,073 596,413 738,660 857,570 1,323,571
Library 1,268,508 766,742 1,044,945 1,166,219 1,206,247 Museum 290,661 227,862 309,764 336,814 346,494
Community development 2,721,348 2,967,534 2,959,804 2,494,641 3,452,141 Capital Outlay 5,876,584 6,863,582 3,616,520 4,579,757 2,586,257 Debt Service
Principal 951,114 924,776 900,041 1,046,576 636,543
Interest and fiscal charges 1,052,927 1,175,669 1,270,374 1,394,056 932,409 Total expenditures 30,729,011 31,269,653 31,030,670 33,922,372 34,276,257 Excess of revenues
over (under) expenditures (2,907,520) (553,867) 3,123,518 3,331,326 3,103,679 Other financing sources (uses)
Loans Received - - - - -
Transfers in 2,787,200 899,862 2,255,675 1,624,700 1,075,359 Transfers out (2,475,098) (899,862) (3,043,587) (1,787,200) (1,262,859) Proceeds from sale of assets - - - 391 6,800
Inception of subscription liabilities - - - 491,285 20,846 Total other financing sources (uses) 312,102 (787,912) - 329,176 (159,854) Net change in fund balances $ (2,595,418) $ (553,867) $ 2,335,606 $ 3,660,502 $ 2,943,825 Total Expenditures $ 30,729,011 $ 31,269,653 $ 31,030,670 $ 33,922,372 $ 34,276,257 Capitalized Portion of Capital Outlay 5,873,015 6,901,135 3,563,999 4,594,854 2,586,257 Total Non-Capitalized Expenditures $ 24,855,996 $ 24,368,518 $ 27,466,671 $ 29,327,518 $ 31,690,000 Debt Service: Principal & Interest $ 2,004,041 $ 2,100,445 $ 2,170,415 $ 2,440,632 $ 1,568,952 8% 9% 8% 8% 5%
Fiscal Year Ended June 30
Debt service as a % of noncapital expenditures
173
PGCC 4-2-25

City of Pacific Grove
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
Sales Transient Utility Business Other
Property and Use Franchise Occupancy Users License Taxes Total $ 5,836,174 $ 3,534,495 $ 975,090 $ 4,998,885 $ 1,428,360 $ 359,408 $ 102,627 $ 17,235,039 3,325,809 6,226,267 1,041,653 5,364,317 1,594,143 341,071 146,945 18,040,205 6,557,824 4,159,401 915,094 5,829,610 1,593,887 402,881 125,487 19,584,184 6,851,928 4,075,744 1,082,574 6,656,849 1,688,876 381,810 121,192 20,858,973 7,306,184 5,139,045 1,226,524 6,796,087 1,641,172 370,655 110,554 22,590,221 7,632,399 4,765,472 1,176,215 5,310,063 1,643,614 396,533 110,823 21,035,119 8,191,673 5,000,873 1,392,700 3,978,577 1,858,652 361,674 222,242 21,006,391 8,573,969 5,630,320 1,489,888 6,821,183 1,940,677 371,310 231,389 25,058,736 9,330,981 6,734,940 1,620,136 7,105,256 2,097,934 425,691 165,613 27,480,551 10,001,561 7,146,935 1,682,562 7,375,869 2,118,068 644,911 177,881 29,147,787 Notes/Analysis:

Source: City of Pacific Grove Finance Department
2023
2016
2017
2018
2019
2020
2021
2024
The City's property tax revenues have increased at a steady pace over the past ten years primarily related to changes in ownership and annual increases allow under the State's Proposition 13 which governs growth in property taxes. 2015
Fiscal Year
Ended
June 30
2022
$17.2
$18.0
$19.6
$20.9
$22.6
$21.0
$21.0
$25.1
$27.5
$29.1
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
General Governmental Tax Revenue by Year (In Millions)
174
PGCC 4-2-25

City of Pacific Grove
General Fund Revenues by Source
Last Ten Fiscal Years
Fiscal Year
Ended June
30 Taxes
Intergovernmental
Licenses
Permits &
Impact Fees
Fines and
Forfeitures
Charges for
Services
Interest, Rents
& Concessions
Other
Revenues Total
2015 $ 16,532,093 $ 163,543 $ 440,403 $ 49,714 $ 983,061 $ 433,491 $ 589,932 $ 19,192,237 2016 17,358,914 229,671 481,304 127,740 1,367,494 355,293 20,814,062 893,646 2017 18,805,809 111,092 576,779 110,665 1,545,556 265,903 21,977,796 561,992 2018 19,754,218 87,478 521,403 282,841 1,643,238 259,883 22,919,219 370,158 2019 21,018,950 92,206 547,193 169,534 1,585,098 553,032 24,364,830 398,817 2020 19,741,066 171,317 576,735 179,797 1,456,261 523,280 23,356,876 708,420 2021 19,679,908 116,159 873,727 36,984 1,538,638 213,705 23,368,297 909,176 2022 23,412,682 150,517 913,160 37,397 1,877,203 1,215,986 (1,805) 27,605,140 2023 25,799,639 146,946 1,083,985 460,058 1,678,855 390,656 1,949,182 31,509,321 2024 27,336,521 278,308 1,322,285 314,242 1,737,498 1,125,585 1,135,321 33,249,760 Source: City of Pacific Grove Finance Department
e
$19.2
$20.8
$22.0
$22.9
$24.4
$23.4
$23.4
$27.6
$31.5
$33.2
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
General Fund Revenue by Year (In Millions)
175
PGCC 4-2-25

City of Pacific Grove
Net Assessed Value of Taxable Property
Last Ten Fiscal Years
Total Total
Personal Assessed Direct Tax
Residential Commercial Other Total Property Value Rate
$ 2,438,540,047 $ 229,888,967 $ 35,379,902 $ 2,703,808,916 $ 38,757,828 $ 16.2% 2,742,566,744 2,582,410,785 238,447,123 33,362,264 2,854,220,172 40,617,474 2,894,837,646 16.2% 2,747,369,747 246,883,728 36,894,923 3,031,148,398 41,950,516 3,073,098,914 15.9% 2,918,531,066 265,910,702 30,645,309 3,215,087,077 42,996,800 3,258,083,877 15.9% 3,112,639,411 265,486,441 48,587,979 3,426,713,831 42,749,505 3,469,463,336 15.9% 3,307,434,783 274,948,202 53,236,808 3,635,619,793 46,292,980 3,681,912,773 15.9% 3,484,607,327 279,870,522 58,693,772 3,823,171,621 46,589,365 3,869,760,986 15.9% 3,670,449,106 281,994,698 58,996,880 4,011,440,684 43,436,617 4,054,877,301 15.9% 3,981,692,067 318,373,164 65,800,233 4,365,865,464 45,441,570 4,411,307,034 15.9% 4,254,675,761 322,149,604 137,205,601 4,714,030,966 43,183,029 4,757,213,995 16.1% Notes / Analysis:

Rates are based on a $100 of taxable value. Exempt values are not included in Total.

Source: Monterey County Assessor Combined Tax Rolls, HdL Companies, Coren & Cone Fiscal Year
Ended Real Property
June 30
With the passage of a constitutional amendment (Proposition 13) and subsequently enacted State legislation, property is assessed according to a base year rather than on a % of market value. Accordingly, a reliable estimate of actual value of taxable property within the City is not possible.
2020
2021
2022
2023
2024
2015
2016
2017
2018
2019
$2.7 $2.9 $3.0 $3.2 $3.4 $3.6 $3.8 $4.0
$4.4
$4.7
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Assessed Value of Real Property (In Billions)
176
PGCC 4-2-25

City of Pacific Grove
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Taxable Value)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Direct Rates:
$ 0.0040$ 0.0035 0.0030 $ $ - - $ $ - $ - $ - $ - -$
Total Direct Rate 0.0030 0.0040 0.0035 - - - - - - -
Overlapping Rates 1
:

County 2 1.000 1.000 1.000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Monterey Peninsula College 0.0230 0.0223 0.0217 0.0325 0.0212 0.0205 0.0202 0.0320 0.0303 0.0289 Pacific Grove Unified 0.0829 0.0855 0.0651 0.0729 0.0619 0.0634 0.0776 0.0769 0.0624 0.0647 Total Overlapping Rate 1.1059 1.1053 1.0868 1.1078 1.0831 1.0839 1.0978 1.1089 1.0927 1.0936 Total Direct and Overlapping Rate 1.1083 $ 1.1099$ 1.1113$ 1.0868 $ 1.0831 $ 1.0839$ 1.0978$ 1.1089$ 1.0927$ 1.0936 $ City Share of 1% Levy per Prop. 13 (3) $ 0.1607$ 0.1607$ 0.1607 0.1607 $ 0.1607 $ 0.1607$ 0.1607$ 0.1607$ 0.1607$ 0.1607 $ Voter Approved City Debt Rate 0.0030 $ 0.0040$ 0.0035 $ - $ -$ -$ -$ -$ -$ -$ Total Direct Rate $ 0.1624$ 0.1620$ 0.1586 0.1613 $ 0.1588 $ 0.1588$ 0.1589$ 0.1590$ 0.1591$ 0.1591 $ Notes/Analysis:
1 2
3 Source: Monterey County Assessors Tax Tables, HdL Companies, Coren & Cone The gross City of Share of the 1% levy per Prop. 13 is $0.1976. This amount included the Educational Revenue Augmentation Fund (ERAF) share of the Pacific Grove General Fund property taxes that is deducted by the State. This amount was approximately $0.0369.

For Fiscal Year Ended June 30
General Obligation Bonds
School Districts
Overlapping rates are those of entities that apply to property owners within the City of Pacific Grove. Not all overlapping rates apply to all property owners (e.g., the rates for school districts apply only to the proportion of the city's property owners whose property is located within the geographic boundaries of the school district).

The passage of a constitutional amendment (Proposition 13) in June 1978 limits the property tax rate to a base of $1.00 per $100. The $1.00 rate is levied by the County and apportioned to local agencies according to a formula prescribed by the California legislature. $1.108 $1.110 $1.111
$1.087 $1.083 $1.084
$1.098
$1.109
$1.093 $1.094
$1.060
$1.070
$1.080
$1.090
$1.100
$1.110
$1.120
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Direct and Overlapping Tax Rate (Per $100 of Tax Value) 177
PGCC 4-2-25

City of Pacific Grove
Principal Property Tax Owners
Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
Assessed Assessed Assessed Assessed
Tax Owner Valuation Rank Valuation Valuation Rank Valuation Monarch Pines HOA $ 31,153,119 1 0.65% $ 11,648,754 6 0.42% ROIC California LLC 27,465,676 2 0.58% 23,310,348 1 0.00% Rutherford 17 Mile LP ET AL 23,870,592 3 0.50% $ - 0.85% Sequoia Equities - PG Et Al - 0.00% 19,695,518 2 0.72%
PG Home Sweet Home LLC 22,545,163 4 0.47% - 0.00%
PG Senior Living LLC 19,871,758 5 0.42% - 0.00%
Aramark Sports Entertainment 19,068,918 6 0.40% 14,252,366 4 0.52% WGA Grove Acres LP 17,262,241 7 0.36% 14,629,731 3 0.53% Foursome Development Co. 13,095,920 8 0.28% 11,135,017 7 0.41% Pacifica Lighthouse LLP 11,920,396 9 0.25% 10,033,778 8 0.37% Vishnu Hospitality Inc. 11,453,816 10 0.24% - 0.00%
Green Valley Corporation - 0.00% 9,600,807 9 0.35%
Zimmerman and Foux - 0.00% 8,964,890 10 0.33%
David H. Dornsfife Trust - 0.00% 12,158,282 5 0.45%
Totals $ 4.16% 135,429,491 197,707,599 $ 4.95%
Total assessed value $ 2,742,566,744 4,757,213,995 $
Notes/Analysis:

Tax owners and values presented in this table reflect the County's Assessment Roll Reports.

Total Taxable Value includes State Unitary
Source: Monterey County Assessor data, HDL, Coren and Cone 2024 2015
$31.2
$27.5
$23.9
$22.5
$19.9
$19.1
$17.3
$13.1
$11.9
$11.5
Monarch Pines HOA
ROIC California LLC
Rutherford 17 Mile LP ET AL
PG Home Sweet Home LLC
PG Senior Living LLC
Aramark Sports Entertainment
WGA Grove Acres LP
Foursome Development Co.

Pacifica Lighthouse LLP
Vishnu Hospitality Inc.

Top Ten Property Owner Valuations - In Millions
178
PGCC 4-2-25

City of Pacific Grove
Property Tax Levies and Collections
Last Ten Fiscal Years
Percent Supplemental Delinquent
Total Tax Current Tax of Levy Tax Tax Total
Levy
1 Collections 2 Collected Collections Collections 3 Collections $ 4,505,763 $ 4,404,126 97.7% $ 83,785 $ 64,142 $ 4,552,053 4,817,299 4,691,501 97.4% 100,936 74,690 4,867,127
5,087,208 4,954,066 97.4% 93,055 70,203 5,117,324
5,279,399 5,155,609 97.7% 106,153 64,907 5,326,669
5,509,161 5,412,231 98.2% 125,259 80,007 5,617,497
5,847,982 5,688,427 97.3% 101,049 58,108 5,847,584
6,148,663 6,100,480 99.2% 131,177 80,338 6,311,994
6,446,038 6,396,517 99.2% 158,152 75,837 6,630,506
7,017,507 6,983,282 99.5% 180,974 52,430 7,216,686
7,644,843 7,427,063 97.2% 172,887 117,025 7,716,975
Notes/Analysis:
1 2
3 Source: County of Monterey Auditor-Controller's Office City of Pacific Grove Finance Department
The amounts listed in this column represent prior year secured, prior year secured, unsecured, and unitary taxes. 2015
2016
2017
2018
2019
2020
2021
2022
2023
The Monterey County Auditor-Controller's Office does not list the total assessed value. This amount is calculated referencing the assessed values of properties and the total direct tax rate and general obligation rate for the City of Pacific Grove.

Monterey County reports collections as current period, irregardless of original level year. 2024
Fiscal Collected within the Fiscal Year of Levy
Year
Ended
June 30
$4.6 $4.9 $5.1 $5.3 $5.6 $5.8
$6.3 $6.6
$7.2
$7.7
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Property Tax Collections (In Millions)
179
PGCC 4-2-25

City of Pacific Grove
Ratios of Outstanding Debt By Type
Last Ten Fiscal Years
2015 2016 2017 2018 2019
Governmental Activities:

General obligation bonds $ 257,439 $ 175,057 $ 89,194 $ - $ - Pension obligation bonds 17,431,558 16,625,139 15,712,560 14,680,804 13,522,530 Capital leases 200,761 82,534 16,787 - -
PG & E Loan - - - - 145,110
SBITA Liability - - - - -
Total Governmental Activities 17,889,758 16,882,730 15,818,541 14,680,804 13,667,640 Business-type Activities:

Revenue bonds - Wastewater refunding bonds 1,103,096 1,052,184 999,045 943,812 886,575 Site Lease - Golf course 3,044,767 2,903,599 2,756,223 2,602,366 2,441,744 Loan- Local water project construction, State loan - 960,522 6,308,658 5,328,076 5,174,788 Loan - PG & E Loan - - - - 7,791
Total Business-type Activities 4,916,305 4,147,863 10,063,926 8,874,254 8,510,898 Total Primary Government $ 22,037,621 $ 21,799,035 $ 25,882,467 $ 23,555,058 $ 22,178,538 Personal income1 $ 717,389,000 675,827,000 $ 740,117,000 $ 766,209,000 $ 759,116,000 $ Debt as percentage of personal income 3.26% 3.04% 3.50% 3.07% 2.92% Population2, A 15,352 15,394 15,498 15,660 15,883
Debt per capita 1,432 1,420 1,670 1,504 1,396
Assessed value3 3,073,098,914 2,894,837,646 3,073,098,914 3,258,083,877 3,469,463,336 Debt as percentage of assessed value 0.76% 0.71% 0.84% 0.72% 0.64% Notes:

A Decrease in 2022 population due to change in Census 2020 benchmark.

Source:
2 California Department of Finance 3 HdL Companies and Avenu Insights and Analytics City of Pacific Grove Finance Department
Fiscal Year Ended June 30
1 US Department of Commerce, Bureau of Economic Analysis (refer to Table 16). $17.4 $16.6 $15.7 $14.7 $13.5 $12.2 $10.8 $9.2 $7.4 $6.5 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Pension Obligation Bonds Outstanding (In Millions)
180
PGCC 4-2-25

City of Pacific Grove
Ratios of Outstanding Debt By Type (Continued)
Last Ten Fiscal Years
2020 2021 2022 2023 2024
Governmental Activities:

General obligation bonds $ - $ - $ - $ - $ -
Pension obligation bonds 12,228,861 10,785,885 9,179,235 7,403,565 6,458,191 Capital leases - - - - -
PG & E Loan 121,696 98,281 74,866 51,451 31,403
SBITA Liability - - - 317,788 200,738
Total Governmental Activities 12,350,557 10,884,166 9,254,101 7,772,804 6,690,332 Business-type Activities:

Revenue bonds - Wastewater refunding bonds 827,487 766,573 703,945 639,629 573,704 Site Lease - Golf course 2,274,059 2,099,001 1,916,244 1,725,451 1,526,268 Loan- Local water project construction, State loan 5,020,088 4,863,840 4,706,030 4,546,643 4,385,661 Loan - PG & E Loan 4,869 1,947 - - -
Total Business-type Activities 8,126,503 7,731,361 7,326,219 6,911,723 6,485,633 Total Primary Government $ 20,477,060 $ 18,615,527 $ 16,580,320 $ 14,684,527 $ 13,175,965 Personal income1 $ 795,868,000 776,384,000 $ 816,648,000 $ 832,496,000 $ 971,497,000 $ Debt as percentage of personal income 2.64% 2.34% 2.03% 1.76% 1.36% Population2, A 15,536 15,265 14,761 14,741 14,966
Debt per capita 1,341 1,198 1,123 996 880
Assessed value3 3,869,760,986 3,681,912,773 4,054,877,301 4,411,307,034 4,757,213,995 Debt as percentage of assessed value 0.56% 0.48% 0.41% 0.33% 0.28% Fiscal Year Ended June 30
$4.6 $5.2
$10.2 $8.9 $8.7 $8.2 $7.8 $7.4 $7.3 $6.7
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Other Outstanding Debt - Excluding Pensions (In Millions) 181
PGCC 4-2-25

City of Pacific Grove
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Less: Amount
Year General Available Percentage Debt
Ended Obligation in Debt of Assessed Per Assessed
June 30 Bonds Service Fund Total Value Capita Value1 Population2, A 2015 257,439 $ $ 63,579 $ 193,860 0.01% 13 $ 2,742,566,744 15,394 2016 175,057 90,746 84,311 0.00% 5 2,894,837,646 15,352 2017 89,194 110,052 (20,858) 0.00% (1) 3,073,098,914 15,498 2018 23,207 - (23,207) 0.00% (1) 3,258,083,877 15,660
2019 - - - 0.00% - 3,469,463,336 15,883
2020 - - - 0.00% - 3,681,912,773 15,265
2021 - - - 0.00% - 3,869,760,986 15,536
2022 - - - 0.00% - 4,054,877,301 14,761
2023 - - - 0.00% - 4,411,307,034 14,741
2024 - - - 0.00% - 4,757,213,995 14,966
Notes: A Decrease in 2022 population due to change in Census 2020 benchmark.

Source: 1 HdL Companies and Avenu Insights and Analytics 2 California Department of Finance
City of Pacific Grove Finance Department
15,394
15,352
15,498
15,660
15,883
15,265
15,536
14,761
14,741
14,966
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
City Population
182
PGCC 4-2-25

City of Pacific Grove
Computation of Direct and Overlapping Debt
June 30, 2024
Total Percentage Amount
Debt Applicable Applicable
Outstanding to City (1) to City
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:

Monterey County Water Resources Agency Zone 2C $ 17,895,000 5.353% $ 957,919 Monterey Peninsula Community College District 185,055,022 9.613% 17,789,339 Pacific Grove Unified School District 41,973,000 62.606% 26,277,616 Total Direct and Overlapping Tax and Assessment Debt $ 244,923,022 $ 45,024,875 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Monterey County General Fund Obligations 109,815,000 5.301% 5,821,293 Monterey County Board of Education Certificates of Participation 4,292,000 5.301% 227,519 Monterey County Water Resources Agency General Fund Obligations 18,755,000 5.301% 994,203 City of Pacific Grove Pension Obligation Bonds 6,458,191 100% 6,458,191 City of Pacific Grove (PG) Pacific Gas and Electric (PG & E) Loan 31,403 100% 31,403 PG Subscription Based Information Technology Agreements (SBITA) 200,738 100% 200,738 Total Gross Direct and Overlapping General Fund Debt $ 139,552,332 13,733,347 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 58,758,222 2023-2024 ASSESSED VALUATION $ 4,757,213,995
Notes / Analysis:
(1)
Ratios to Assessed Valuation:

Total Direct and Overlapping Tax and Assessment Debt 0.96% Total Direct Debt ($2,723,241) 0.05%
Gross Combined Total Debt 1.13%
Source: California Municipal Statistics
The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. $132,862,000
$6,690,332
$185,055,022
$41,973,000 Debt by Entity
Monterey County
City of Pacific Grove
Monterey Peninsula Community College District
Pacific Grove Unified School District
183
PGCC 4-2-25

184
PGCC 4-2-25

City of Pacific Grove
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year Ended
June 30 Debt limit
Total net debt applicable
to the limit Legal debt margin
Total net debt applicable
to the limit
2015 $ 411,385,012 $ 193,860 $ 411,191,152 0.05%
2016 434,225,647 84,311 434,141,336 0.02%
2017 460,964,837 - 460,964,837 0.00%
2018 488,712,582 - 488,712,582 0.00%
2019 520,419,500 - 520,419,500 0.00%
2020 552,286,916 - 552,286,916 0.00%
2021 580,464,148 - 580,464,148 0.00%
2022 608,231,595 - 608,231,595 0.00%
2023 661,696,055 - 661,696,055 0.00%
2024 713,582,099 - 713,582,099 0.00%
Legal Debt Margin Calculation:

Total assessed value $ 4,757,213,995
Debt limit (15% of total assessed value) 713,582,099
Debt applicable to limit:

General obligation bonds (reported at accreted value)
Less: Amount available in debt service fund
for repayment of bonds
Total net debt applicable to limit -
Legal debt margin $ 713,582,099
Notes:

State Code, Section 43605, sets the debt limit at 15% of the total assessed valuation of all real personal property within the City Source: County of Monterey Auditor-Controller's Office, HDL, Coren and Cone City of Pacific Grove Finance Department
$411 $434 $461 $489 $520 $552 $580 $608 $662 $714
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Legal Debt Margin (In Millions)
185
PGCC 4-2-25

City of Pacific Grove
Pledged-Revenue Coverage
Last Ten Fiscal Years
2015 2016 2017 2018 2019
Wastewater Revenue Bonds:

Wastewater charges and other $ 2,986,640 $ 3,208,150 $ 3,151,928 $ 3,304,277 $ 3,536,772 Less: operating expenses 1,438,459 1,371,609 1,388,706 1,985,232 1,679,991 Net available revenue 1,548,181 1,836,541 1,763,222 1,319,045 1,856,781 Debt service:

Principal 47,793 50,062 53,138 55,233 57,238
Interest 37,764 36,117 34,353 33,021 31,132
Total 85,557 86,179 87,491 88,254 88,370
Coverage 18 21 20 15 21
Certificates of Participation
Golf course charges and other $ 406,968 $ 393,009 $ 354,856 $ 334,015 $ 428,831 Less: operating expenses 485,069 124,775 53,142 75,276 141,108 Net available revenue (78,101) 268,234 301,714 258,739 287,723 Debt service:

Principal 85,000 - - - -
Interest 183,426 - - - -
Total 268,426 - - - -
Coverage0.45 - - - -
Source:

City of Pacific Grove Finance Department
Fiscal Year Ended June 30
$3.0
$3.2
$3.2
$3.3
$3.5
$3.7
$3.5
$3.5
$3.8
$3.8
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Wastewater Revenues - In Millions
186
PGCC 4-2-25

City of Pacific Grove
Pledged-Revenue Coverage (Continued)
Last Ten Fiscal Years
2020 2021 2022 2023 2024
Wastewater Revenue Bonds:

Wastewater charges and other $ 3,533,090 3,659,651 $ 3,477,534 $ 3,759,102 $ 3,829,192 $ Less: operating expenses 1,748,013 2,043,805 2,181,430 1,640,102 1,506,019 Net available revenue 1,615,846 1,785,077 1,296,104 2,119,000 2,323,173 Debt service:

Principal 59,088 60,914 62,628 64,316 65,925
Interest 29,220 27,203 25,168 23,035 20,349
Total 88,308 88,117 87,796 87,351 86,274
Coverage 18 20 15 24 27
Certificates of Participation
Golf course charges and other $ 368,064 294,320 $ $ 692,304 $ 868,062 $ 745,216 Less: operating expenses 15,728 92,524 31,296 101,521 222,919 Net available revenue 278,592 275,540 661,008 766,541 522,297 Debt service:

Principal - - - - -
Interest - - - - -
Total - - - - -
Coverage- - - - -
Notes / Analysis:

Refunded 2001B Wastewater Bonds with Series 2013 Refunding Wastewater Revenue Loan Fiscal Year Ended June 30
Details regarding the city's outstanding debt can be found in the notes to the financial statements.

Operating expenses do not include interest or depreciation. $1.4
$1.4
$1.4
$2.0
$1.7
$2.0
$1.7
$2.2
$1.6
$1.5
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Wastewater Expenses - In Millions
187
PGCC 4-2-25

City of Pacific Grove
Demographic and Economic Statistics
Last Ten Fiscal Years
Total Personal Per Capita % of Population % of Population Unemployment Income Personal Median 25+ with High 25+ with Population 1,6 Rate 2 (In thousands) Income 3 Age 4 School Diploma 5 Bachelor's Degree 5 2015 15,394 5.7% 675,827 $ $ 43,902 49.3 96% 50%
2016 15,352 5.1% 717,389 46,729 49.3 95% 50%
2017 15,498 4.7% 740,117 47,756 48.8 96% 52%
2018 15,660 4.9% 766,209 48,928 49.0 96% 53%
2019 15,883 4.6% 759,116 47,794 49.0 96% 51%
2020 15,265 5.1% 776,384 50,860 48.5 96% 53%
2021 15,536 8.6% 795,868 51,227 48.9 97% 54%
2022 14,761 9.1% 816,648 55,325 48.3 96% 55%
2023 14,741 5.9% 832,496 56,475 48.0 96% 55%
2024 14,966 7.0% 971,497 64,914 49.2 96% 57%
Notes / Analysis / Sources:

A For calendar year ending during the fiscal year.

B Total Personal Income is presented in thousands.
1 California Department of Finance and HdL Companies
2 California Employment Development Department and HdL Companies 3 U.S. Department of Commerce, Bureau of Economic Analysis and HdL Companies, for years 2010-2017 4 U.S. Census, American Fact Finder for 2009, and HdL Companies 5 California Board of Equalization and HdL Companies
6 Decrease in 2022 population due to change in Census 2020 benchmark Fiscal Year
Ended
June 30

5.7%

5.1% 4.7% 4.9% 4.6%

5.1%

8.6%

9.1%

5.9%

7.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
County Unemployment Rate
188
PGCC 4-2-25

City of Pacific Grove
Employees by Industry
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
69 68 68 69 71 38 72 68 74 74
12 11 12 13 13 12 7 13 20 12
26 26 27 27 26 25 25 25 26 26
5 5 5 5 5 5 5 5 5 5
14 13 13 14 15 13 16 14 16 15
Educational & Health Services 18 19 19 20 21 19 20 21 23 24 25 24 25 25 28 20 23 24 27 26
32 31 33 35 36 32 33 36 36 34
14 17 14 11 5 4 9 4 6 6
Totals 213 216 216 219 220 168 210 210 233 222
Analysis: Employment in the agriculture and leisure/hospitality areas have grown over the ten year period, except for 2020 due to the impacts of COVID.

Source: Employment Development Department, Labor Market Information (LMI) Salinas MSA Note: GASB Statement No. 44 allows for employment by industry in lieu of Principal Employers For Fiscal Year Ended June 30
Other
Agriculture
Construction, Mining, Manufacturing
Trade, Transportation & Utilities
Information & Financial Activities
Professional & Business Services
Industry
Leisure & Hospitality
Government
213
216
216
219
220
168
210
210
233
222
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Employees in County (In Thousands)
189
PGCC 4-2-25

City of Pacific Grove
Number of City Employees by Department (1)
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Departments:

General Government (2) 14 14 17 16 17 17 17 14 18 18
Public Safety 34 34 37 34 34 34 33 34 34 34
Public Works 20 20 21 23 23 23 20 22 20 20
Recreation (3) 14 14 14 14 14 15 3 5 7 10
Library (3) 12 12 12 12 11 10 5 8 8 9
Community Development 8 8 8 8 10 9 8 8 8 8
Business-type Activities:

Cemetery 1 1 2 2 2 2 2 2 3 2
Sewer 4 5 5 5 5 5 5 5 5 6
Total 107 110 110 112 116 115 95 99 102 105
Analysis/Notes:
1 Reflects the authorized positions in each budget year. This number includes both regular and part-time staff. 2 Includes 3.5 FTE's for Council Members and Mayor
3 Source: City of Pacific Grove Budget Document
The counts for Recreation and Library Departments exclude part-time, on-call and seasonal staff.

Note that the Museum and Golf Course are operated on a contract basis without City employees For Fiscal Year Ended June 30
110
107
110
112
116
115
95 99
102
105
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total Number of City Employees (PT/FT)
190
PGCC 4-2-25

City of Pacific Grove
Operating Indicators By Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function:

Police
Calls for service 17,627 21,521 18,032 15,359 20,350 18,902 15,875 19,266 12,284 13,214 Fire
Calls for service 1,584 1,764 1,694 1,604 1,877 1,740 1,772 2,033 2,257 1,948 Inspections 177 182 703 484 1,006 197 62 201 109 668
Recreation
Park reservations (1) 318 348 328 299 645 273 90 2,166 878 1,502 Special events (1) 14 18 16 18 24 18 - 3 21 26
Recreation program registrations (1) N/A N/A N/A N/A N/A 667 414 1,168 1,653 2,009 Public Works
Potholes patched 100 121 58 108 75 N/A 100 116 108 103
Work orders completed 1,594 1,406 1,630 1,620 1,606 1,216 1,198 1,681 1,579 1,803 Tree Permits Issued 96 354 329 360 434 363 276 508 295 218 Library
Circulation of materials (thousands) 283 289 291 288 328 188 84 180 223 283 Reference questions (thousands) (1) 25 26 21 15 19 29 5 13 34 18 Community Development
Building Permits 525 576 429 429 520 1,095 1,203 1,278 1,040 1,054 Analysis/Notes:
(1) Due to COVID-19 restrictions, some indicators related to Recreation, Library, and Special Events were limited in prior years.

Source: City of Pacific Grove Finance Department
For Fiscal Year Ended June 30
1,406
1,594 1,620 1,630 1,606
1,216 1,198
1,681 1,579
1,803
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Work Orders Completed
191
PGCC 4-2-25

City of Pacific Grove
Capital Asset Statistics By Function
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function:

General Government
Number of buildings 1 1 1 1 1 1 1 1 1 1
Public Safety
Police stations 1 1 1 1 1 1 1 1 1 1
Fire stations 1 1 1 1 1 1 1 1 1 1
Public Works
Miles of paved streets 55 55 55 55 55 55 55 55 55 55
Street lights 699 699 699 699 699 699 699 699 699 699
Fleet Vehicles (City-wide) 121 123 121 121 93 95 95 95 90 119 Recreation
Parks 19 19 19 19 19 19 19 19 19 19
Playgrounds 4 4 4 4 4 4 4 4 4 4
Community centers / facilities 4 4 4 4 4 4 4 4 4 4
Swimming pools 1 1 1 1 1 1 1 1 1 1
Tennis courts 5 5 5 5 5 5 5 5 5 5
Other City Facilities
Library facilities 1 1 1 1 1 1 1 1 1 1
Museum facilities 1 1 1 1 1 1 1 1 1 1
Cemetery facilities 1 1 1 1 1 1 1 1 1 1
Historic lighthouse 1 1 1 1 1 1 1 1 1 1
Golf courses 1 1 1 1 1 1 1 1 1 1
Sewer
Miles of sanitary sewers 58 58 58 58 58 58 58 58 58 58
Number of storm drains 332 332 332 332 332 332 332 332 332 332 Source:City of Pacific Grove Departments
#
For Fiscal Year Ended June 30
192
PGCC 4-2-25

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors’ Report
To the Honorable Mayor and Members of the City Council
of the City of Pacific Grove
Pacific Grove, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pacific Grove, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the basic financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated January 20, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

PGCC 4-2-25

To the Honorable Mayor and Members of the City Council
of the City of Pacific Grove
Pacific Grove, California

194
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
January 20, 2025
PGCC 4-2-25

City of Pacific Grove
California Popular Annual Financial Report
For the Fiscal Year Ended June 30, 2024
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
www.cityofpacificgrove.org
PGCC 4-2-25

Matthew Mogensen
City Manager
Table of Contents
City Profile and Overview ......................................3 Departmental Achievements ................................. 4 Local Economy.......................................................5 Management Discussion and Analysis ..................6
Financial Analysis of Funds...................................12 Capital Assets.......................................................15 Debt, OPEB and Pension Obligations ...................16 Economic Factors / Next Year’s Budget................17 Mission and Vision
 Mission: To deliver quality professional public
services in the City and region
 Vision: To thoughtfully grow as an inclusive
community, protecting its character
Core Values
 Leadership: Uphold the highest work ethic
 Inclusiveness: Cultivate an environment of trust
 Integrity: Safeguard public trust
 Collaboration: Promote transparent engagement
 Stewardship: Protect our natural environment
Focused Priority Areas and Goals
 Recreation: Robust and accessible activities
 Infrastructure: Maintain community assets
 Stewardship: Implement sustainable practices
 Housing: Diversity affordable opportunities
City Council FY 2023-24
Mayor: Bill Peake
Councilmembers: Joe Amelio
Debby Beck
Luke Coletti
Lori McDonnell
Chaps Poduri
Nick Smith
The City of Pacific Grove
presents its Popular Annual
Financial Report (PAFR) for the
Fiscal Year ended June 30th.

The PAFR is designed to
present the City’s financial
condition in a concise, easy to
read format for all users.

Summary of Annual Report
This report summarizes the
Annual Comprehensive Financial
Report (ACFR), containing more
detailed financial information.

Certain disclosures required by
generally accepted accounting
principles (GAAP) are omitted.

Audit Opinion / Awards for Excellence
The City has received a “clean” unmodified audit
opinion for its ACFR, and a Certificate of
Achievement for Excellence in Financial
Reporting (COA) from the Government Finance
Officers Association (GFOA). In addition, the City
has received awards for excellence for its
operating budget from GFOA and the California
Society of Municipal Finance Officers. These
awards focus on providing quality documents
that are easy to understand by the public.

Social Media for the City
Website: cityofpacificgrove.org
Facebook: CityofPacificGrove
X/Twitter: @PacificGrove
Welcome Message
From the
City Manager
City of
Pacific Grove PAFR
Fiscal Year 2023-24
PGCC 4-2-25

City Profile
The City of Pacific Grove is a small coastal community located in Monterey County that occupies just under three square miles, with a population of approximately 15,000 residents, with 56% of the adults having college degrees, and almost half of the population over the age of 50, with an average household income of approximately $120K. The City is situated on a peninsula which is bordered by Monterey, Pebble Beach, the Pacific Ocean, and the Monterey Bay with a County unemployment rate of approximately 7%. Pacific Grove has a very temperate climates all year round, with temperatures ranging from the 70’s in the late summer to the mid 40’s in the winter. Pacific Grove has over 1,300 registered historical homes built prior to 1926. The school district includes schools ranked as the highest in the Monterey area.

The City is home to many attractions and seasonal events, including:
• Point Pinos Lighthouse • Pacific Grove Golf Links • Good Old Days • Monarch Butterfly Sanctuary • Hopkins Marine Station • Big Sur Half Marathon • Asilomar State Beach • Pacific Grove Natural Museum • Christmas at the Inns • Lovers Point Park and Beach • Butterfly House • Butterfly Days City Government Structure and Services
Pacific Grove is a Charter City which was incorporated in 1889. The City operates under the Council-City Manager form of government with a sevenmember City Council elected by the citizens. The Mayor is directly elected to serve a two-year term and Council members are elected to alternating four-year terms. The Council has the authority to establish all laws and regulations, subject only to the limits of the City Municipal Code and State legislation. The City Council appoints a City Manager to serve as the City’s chief administrative officer. The City Manager provides direction to all City departments; and ensures that all Council policies are implemented.

The City provides police protection, street, park and facility maintenance, recreational, planning, zoning, economic development, library, administrative and financial services for Pacific Grove. Fire protection services are provided through a contract with the City of Monterey. Additional services include sewer operations, a municipal golf course, cemetery, and a local water reclamation facility.

Long-Term Forecast
The City uses a five-year forecast to facilitate long-term fiscal planning. The City’s conservative forecast for the next five fiscal years should assist in navigating future economic challenges. To assist with long-term planning, the City incorporates a Pavement Management Study, an Information Technology Master Plan, and a Sewer Master Plan. Additional plans for future
improvements include a Facility Asset Management Study, and a Streets Policy. The fiscal policy of the General Fund recommends maintaining reserves of at least 35% of its annual expenditures.

PGCC 4-2-25

Departmental Achievements
Despite the limited resources available, the City has developed an ambitious two year workplan for 2023-2025, including the following which address the City’s mission and vision noted on a previous page.

City Council
• Developed the City’s long-term goals.
• Protected the environment and quality of life for the City. • Adopted the annual operating and capital improvement budget.

City Manager
• Completed with IT Laserfiche Documents Management System implementation project. • Implemented several provisions of the recruitment and retention plan. • Negotiated successor MOUs for the General Employee and Management Employee Association.

Administrative Services
• Received an unmodified or “clean” opinions on various mandated audit reports. • Completed an updated cost allocation plan and development impact fee study. • Received awards for the City’s Annual Comprehensive Financial Statements and Budget.

Community Development
• Continued efforts on Housing Element, General Plan, and Zoning Amendments Update. • Updated the Community Development website to receive online applications for permits. • Continued code enforcement to protect health and offered next day building inspection services.

Economic Development
• Worked with the Chamber to assist on local business initiatives. • Facilitated meetings for the Economic Development Commission. • Oversaw the Façade Improvement Program.

Library
• Implemented with IT a new “Self-Checkout” system at the library. • Created monthly poetry programs.
• Increased outreach for seniors and schools with a new Outreach Vehicle.

Fire and Police
• Completed a Community Wildfire Protection Plan.
• Hosted two Citizen Police Academies.
• Implemented the FLOCK Camera System.

Public Works
• Substantially completed the FY 23/24 Street Rehabilitation projects. • Performed a substantial amount of road rehabilitation and repair. • Planted more than 150 trees throughout the City.

Recreation and Museum
• Reestablished Youth Center Afterschool Program for youth. • Implemented Youth Soccer Clinics, Soccer League and Track and Field. • Improved and streamlined the park and facility reservation process.

PGCC 4-2-25

Local Economy
Pacific Grove’s local economy is supported by residents, regional visitors, and a strong tourism base. In Fiscal Year 24/25, the City’s three core revenues: Property Tax, Sales Tax, and Transient Occupancy Tax (TOT) are anticipated to be stable; however slower growth is projected. The projected $10.3 million in property tax receipts are anticipated to return to more traditional growth rates because of higher mortgage interest rates. Sales and Use tax is projected to be approximately $6 million, which is slower than the 23/24 Fiscal Year due to a flattening in the consumer market. TOT is expected to grow to approximately $7 million.

In November of 2022, voters approved two ballot measures related to cannabis sales. This included gauging support to allow the establishment of one cannabis storefront; and the ability to levy a tax up to 6% of gross receipts on the sale of cannabis and cannabis products. In Fiscal Year 24/25, the City continued to work to develop a cannabis licensing program, with the goal of authorizing one retail license. Cannabis taxes were initially projected to yield $300,000 annually; however, $100,000 in revenues were included in the Fiscal Year 24/25 to reflect a partial year of operation. This estimate may be modified to reflect program implementation timelines.

Economic development and revitalization of the commercial corridors, particularly the downtown, will continue to be a focus for the City. The addition of a new 100-room boutique hotel in the downtown, the P.G.

Hotel, which is proposed to be operated by the Kimpton Hotel group, promises to bring much needed additional foot traffic to the downtown.

This new hotel is anticipated to significantly increase transient occupancy tax, property tax and sales tax revenues once the project is complete and occupancy commences. The hotel developers broke ground on the project and expect a 2-year construction phase.

Over the last few years, inflation has increased significantly. These inflationary rates, combined with limited affordable housing within Monterey County, continue to impact the local economy and the ability for employers to retain an adequate workforce. The draft Housing Element, which includes the City’s Regional Housing Needs Allocation (RHNA), has indicated that the City needs to plan for 1,125 affordable housing units. Some of the potential development efforts could be challenging due to the State’s current Water Cease and Desist Order. To emphasize its importance, the Council has made affordable housing an Area of Focus.

The limited local pool of prospective employees and the regional high cost of housing have also made it difficult for the City to attract and retain highly qualified staff. To assist, compensation packages are also balanced with the need to achieve fiscal sustainability. Like most California municipalities, the City has challenges with rising CalPERS pension costs. To assist with costcontainment, employees in “classic” retirement plans have agreed to pay 3- 5% of the employer’s share of pension costs, in addition to their regular pension contributions. In Fiscal Year 24/25, the unfunded liability payment is $4.5 million, with the increase over the prior year primarily due to lower than anticipated rate of return on CalPERS investments. The estimated higher contributions have been built into the multi-year forecast.

PGCC 4-2-25

Management Discussion and Analysis
This discussion and analysis (MD&A) includes an overview of the City of Pacific Grove’s (City’s) financial activities and performance for the fiscal year ended June 30, 2024. This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which consists of three parts: (1) Government-Wide Financial Statements, (2) Fund Financial Statements, and (3) Notes to the Basic Financial Statements.

This report also contains other supplementary information in addition to the basic financial statements themselves. The financial statements presented herein include all of the activities of the City and its component units. Please read the MD&A in conjunction with the transmittal letter, the basic financial statements, and the accompanying notes to those financial statements in the Annual Comprehensive Annual Report (ACFR).

Government-Wide Financial Statements
These provide readers with a broad view of the City’s finances, using the economic resources measurement focus and accrual basis of accounting. These accounting methods are similar to those used by private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. Additionally, certain interfund receivables, payables, and interfund activity have been eliminated. An overview of the City’s functions associated with each classification is listed below.

Governmental Activities – All of the City's basic services are considered to be governmental activities. This includes general government, public safety, public works, recreation, library, museum, and community development. These services are supported by general City revenues such as taxes, and by specific program revenues such as development and recreation program fees.

Business-Type Activities – The City’s enterprise activities include cemetery, sewer, water reclamation and golf operations. Unlike governmental activities, these services are fully supported by charges paid by users based on the amount of services they use.

The Statement of Net Position presents financial information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or declining. The Statement of Activities presents information showing how the net position changed during the recent fiscal year.

Fund Financial Statements
These provide readers with additional information about the City’s major funds, how services were financed in the short term, and fund balances available for financing future projects. Most of the City’s funds, excluding the City’s General Fund and Internal Service Funds, have significant restrictions, commitments, or other limitations, which affect the availability of their fund resources for future use.

Notes to the Financial Statements / Supplementary Information These provide additional information to give the reader a better understanding of the data provided in the Government-Wide Financial Statements and Fund Financial Statements. In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary Information concerning the City’s progress in funding its obligation to provide pension and retiree health benefits to its employees. The combining statements for non-major and internal service funds are presented immediately following the required supplementary information.

PGCC 4-2-25

Financial Highlights
Statement of Net Position
• Net Position – Representing the difference between assets plus deferred outflows of resources less liabilities plus deferred inflows of resources is ↑ $6.3 million to $55.3 million, due to increased revenues from taxes and sewer fees.
• Working Capital – Representing current assets less current liabilities was ↑ $ 5.6 million to $30.9 million, due to increased revenues from taxes and sewer fees.
• Net Investment in Capital Assets – The City’s largest portion of net position reflects investments in net capital assets less any related debt that was used to acquire those assets. The ending balance was $63.9 million, reflecting the purchase of a new fire truck and completion of capital projects during the fiscal year. • Unrestricted Net Position – The City had a deficit in unrestricted net position of $19.4 million at the end of the fiscal year. Many different items comprise the unrestricted net position, including the City’s net pension liability offset.

Statement of Activities
• Change in Net Position - Was $6.3 million during the year, comprised of a net change from governmental activities of $3.5 million and from business type activities of $2.8 million. • Operating Revenues / Expenses – Operating revenues consisted of $10.1 million for Charges for Services, $1.8 million for Operating Grants and Contributions, $474K for Capital Grants and Contributions and $31.7 million for taxes and general revenues. Operating expenses consisted of $34.2 million for governmental activities and $4.1 million for business type activities.

PGCC 4-2-25

Statement of Net Position
The increase in assets and net position in the Statement of Net Position is due to increased tax receipts and sewer revenues, as well as other revenue and expense variances noted elsewhere in this document. The deficit of Net Position is net of pension related liabilities, inflows and outflows.

Current and Other Assets
This includes unrestricted cash and investments and items such as receivables, inventory and prepaid items expected to be converted into cash within one year.

Capital Assets
Consisting of land, buildings, improvements, infrastructure, vehicles, equipment, and the right-to-use assets.

These items are not available for future spending.

Current and Other Liabilities
Represents liabilities expected to be paid with cash within one year.

Long Term Liabilities
Includes the outstanding obligations for the City, including pensions, OPEB, compensated absences, leases, subscriptions, claims outstanding, and bonded debt.

Net Position
Net investment in capital assets represents the City’s capital assets net of accumulated depreciation and related debt. The restricted portion is subject to externally imposed restrictions for activities such as capital projects, debt service, and community development and is not available for general operations. The unrestricted portion is available for general operations. The deficit amount shown in Governmental Activities is due to the City’s outstanding pension obligations.
2024 2023 2024 2023 2024 2023
Assets
Current assets $ 31,536,158 $ 28,283,390 $ 12,595,155 $ 11,959,454 $ 44,131,313 $ 40,242,844 Capital and other assets 52,208,677 52,331,856 29,811,564 28,531,697 82,020,241 80,863,553 Total Assets $ 83,744,835 $ 80,615,246 $ 42,406,719 $ 40,491,151 $ 126,151,554 $ 121,106,397 Deferred Outflows of Resources $ 20,365,434 $ 20,411,891 $ 356,339 $ 906,222 $ 20,721,773 $ 21,318,113 Liabilities
Current liabilities $ 11,250,624 $ 12,065,938 $ 1,955,768 $ 1,178,517 $ 13,206,392 $ 13,244,455 Noncurrent and other liabilities 63,260,135 61,892,717 7,301,671 9,121,474 70,561,806 71,014,191 Total Liabilities $ 74,510,759 $ 73,958,655 $ 9,257,439 $ 10,299,991 $ 83,768,198 $ 84,258,646 Deferred Inflows of Resources $ 5,943,387 $ 6,862,623 $ 1,824,958 $ 2,246,234 $ 7,768,345 $ 9,108,857 Net Position
Net investment in capital assets $ 42,670,667 $ 42,333,875 $ 21,252,446 $ 21,619,974 $ 63,923,113 $ 63,953,849 Restricted 10,470,523 10,055,437 296,448 298,348 10,766,971 10,353,785 Unrestricted (deficit) (29,485,067) (32,183,453) 10,131,767 6,932,826 $ (19,353,300) (25,250,627) Total Net Position $ 23,656,123 $ 20,205,859 $ 31,680,661 $ 28,851,148 $ 55,336,784 $ 49,057,007 Summary of Net Position
Governmental Activities Business-Type Activities Totals PGCC 4-2-25

Statement of Changes in Net Position
The Statement of Changes in Net Position reflects the fact that the City’s net position increased by approximately $6.3 million in the current fiscal year. The increase in net position is due to increases in tax and sewer fee revenues received. The City’s Statements of Activities are shown below for FY 2024 and 2023:

Functions/Programs 2024 2023 2024 2023 2024 2023
Program Revenues
Charges for services $ 3,820,786 $ 3,643,560 $ 6,318,159 $ 5,855,243 $ 10,138,945 $ 9,498,803 Operating grants and contributions 1,803,700 2,689,705 - - 1,803,700 2,689,705 Capital grants and contributions 474,137 1,109,485 - - 474,137 1,109,485 Total Program Revenues 6,098,623 7,442,750 6,318,159 5,855,243 12,416,782 13,297,993 General Revenues - -
Taxes 29,147,787 27,480,551 - - 29,147,787 27,480,551
Investment earnings 1,443,592 345,550 511,470 151,223 1,955,062 496,773 Other revenues 1,150,805 1,991,162 - 1,150,805 1,991,162 Total General Revenues 31,742,184 29,817,263 511,470 151,223 32,253,654 29,968,486 Total Revenues 37,840,807 37,260,013 6,829,629 6,006,466 44,670,436 43,266,479 Expenses - -
General government 6,440,878 3,241,604 - - 6,440,878 3,241,604 Public safety 15,217,138 7,895,196 - - 15,217,138 7,895,196 Public works 5,230,431 2,809,143 - - 5,230,431 2,809,143 Recreation 1,562,919 554,042 - - 1,562,919 554,042
Library 1,248,197 741,061 - - 1,248,197 741,061
Museum 360,431 223,551 - - 360,431 223,551
Community development 3,666,942 1,426,245 - - 3,666,942 1,426,245 Interest on fiscal charges 476,107 470,144 - - 476,107 470,144 Cemetery operating - 452,270 469,815 452,270 469,815
Sewer operating - 1,224,324 2,158,900 1,224,324 2,158,900 Local water project - 2,042,255 1,107,370 2,042,255 1,107,370 Golf course - 468,767 364,089 468,767 364,089
Total Expenses 34,203,043 17,360,986 4,187,616 4,100,174 38,390,659 21,461,160 Excess / (Deficiency) before Transfers 3,637,764 19,899,027 2,642,013 1,906,292 6,279,777 21,805,319 Transfers (187,500) (162,500) 187,500 162,500 - -
Increase / (Decrease) in Net Position 3,450,264 19,736,527 2,829,513 2,068,792 6,279,777 21,805,319 Net Position, Beginning of Year 20,205,859 469,332 28,851,148 26,782,356 49,057,007 27,251,688 Net Position, End of Year $ 23,656,123 $ 20,205,859 $ 31,680,661 $ 28,851,148 $ 55,336,784 $ 49,057,007 Summary of Statement of Changes in Net Position
Governmental Activities Business-Type Activities Totals PGCC 4-2-25

Statement of Changes in Net Position (Continued)
The following represents a breakout of program revenues and expenditures by major activity:

Revenues include charges for services such as sewer charges, grants, and funding received from other organizations for the purpose of financing the operating and capital costs of special programs, and taxes, including property, sales and transaction, franchise, transient occupancy, and business license taxes.

Expenses include Administration (including City Manager, Human Resources, Finance and Information Services, Police, Fire, Public Works, Community Development (including planning, building, housing and economic development), Recreation (including the library, museum and adult and youth activities), the City’s golf course, Sewer, Cemetery and the City’s local water project.
2022 2023 2024 % of Total
Program Expenses
Governmental activities:

General government $ 5,800,659 $ 3,241,604 $ 6,440,878 16.8% Public safety 16,706,460 7,895,196 15,217,138 39.6%
Public works 6,611,056 2,809,143 5,230,431 13.6%
Recreation 1,117,468 554,042 1,562,919 4.1%
Library 1,437,706 741,061 1,248,197 3.3%
Museum 431,708 223,551 360,431 0.9%
Community Development 4,075,001 1,426,245 3,666,942 9.6% Interest and fiscal charges on long-term debt 580,350 470,144 476,107 1.2% Total governmental activities expenses 36,760,408 17,360,986 34,203,043 89.1% Business-type activities:

Cemetery 610,773 469,815 452,270 1.2%
Sewer 2,842,577 1,045,865 1,224,324 3.2%
Local Water Project 1,048,075 2,136,404 2,042,255 5.3%
Golf 281,320 282,177 468,767 1.2%
Total business-type activities expenses 4,782,745 3,934,261 4,187,616 10.9% Total primary government expenses $ 41,543,153 $ 21,295,247 $ 38,390,659 100% Program Revenues
Governmental activities:

Charges for services:

General government $ 1,720,294 $ 1,439,808 $ 1,210,812 9.8% Public safety 31,244 593,308 599,859 4.8%
Public works 2,646 21,550 1,639 0.0%
Recreation 390,314 452,660 599,573 4.8%
Library 34,443 2,132 2,374 0.0%
Community Development 882,556 1,134,102 1,406,529 11.3% Operating grants and contributions 2,526,917 2,689,705 1,803,700 14.5% Capital grants and contributions 2,248,708 1,109,485 474,137 3.8% Total governmental activities program revenues 7,837,122 9,958,525 6,098,623 49.1% Business-type activities:

Charges for services:

Cemetery 800,923 773,195 716,931 5.8%
Local Water Project 598,195 597,011 1,026,820 8.3%
Sewer 3,565,896 3,693,156 3,829,192 30.8%
Golf 611,397 791,881 745,216 6.0%
Total business-type activities program revenues 5,576,411 5,855,243 6,318,159 50.9% Total primary government program revenues 13,413,533 13,297,993 12,416,782 100% Net (expense)/revenue:

Governmental activities (28,923,286) (9,918,236) (28,104,420) Business-type activities 793,666 1,920,982 2,130,543
Total primary government net (expense)/revenue $ (28,129,620) $ (7,997,254) $ (25,973,877) Fiscal Year Ended June 30
PGCC 4-2-25

Statement of Changes in Net Position (Continued)
Governmental Activities
The total cost of services for all governmental activities in FY 23-24 was $34.2 million, with program revenues covering $6.1 million resulting in a net cost of $28.1 million. The remaining portion of governmental activities was covered by taxes (some of which can only be used for certain programs) and other revenues, such as interest and other miscellaneous revenue. The cost of services went up driven by cost escalations and the impact of negotiated labor agreements and the most recent pension actuarial.

Business Activities
The total cost of all Business-Type activities this year was $4.1 million. As shown in the Statement of Activities, these were funded by charges for services totaling $6.3 million amounts paid by users of the systems, along with interest earned on invested cash balances. Net position increased by $2.8 million for business-type activities (including investment earnings and transfers) to $31.7 million. 2022 2023 2024 % of Total
General Revenues and Other Changes in Net Assets
Governmental activities:

Taxes
Property taxes $ 8,573,969 $ 9,330,981 $ 10,001,561 31.7% Sales and use taxes 5,630,320 6,734,940 7,146,935 22.6% Franchise taxes 1,489,888 1,620,136 1,682,562 5.3%
Transient occupancy taxes 6,821,183 7,105,256 7,375,869 23.4% Utility users taxes 1,940,677 2,097,934 2,118,068 6.7%
Business license tax 371,310 425,691 644,911 2.0%
Property transfer tax 231,389 150,278 159,401 0.5%
Property taxes in lieu of motor vehicle fee - 15,335 18,480 0.1% Unrestricted Investment earnings 179,637 1,443,592 4.6% Miscellaneous or Other revenues 1,400,243 1,143,687 1,150,805 3.6% Transfers - (162,500) (187,500) -0.6%
Total governmental activities 26,056,675 28,807,288 31,554,684 100% Business-type activities:

Unrestricted Investment earnings (18,409) 151,223 511,470 Miscellaneous or Other revenues -
Transfers - 162,500 187,500
Total business-type activities (18,409) 147,810 698,970 Total primary government $ 26,038,266 $ 28,955,098 $ 32,253,654 Fiscal Year Ended June 30
PGCC 4-2-25

Financial Analysis of the City’s Governmental Funds
The Fund Financial Statements focus on individual parts of the City’s government, reporting operations in more detail than the Government-Wide Statements.

The City’s governmental funds provide information on near-term inflows, outflows and balances of spendable resources. The City’s governmental funds reported a combined fund balance at June 30, 2024 of $28 million, an increase of $2.9 million over the end of the previous fiscal year. Major changes are noted below.

The General Fund is the chief operating fund of the City and reflects an increase of $2.6 million in fund balance. due to higher than anticipated tax revenues and expenditure savings due to vacancies. Capital Projects fund balances increased by $338,000 due to the carryover of some capital projects to Fiscal Year 24-25.

CDBG Capital Other
General RSTP Grant Projects Governmental
Fund Fund Fund Fund Funds Total
Total Revenues $ 33,249,760 $ 69,450 $ 50,472 $ 123,482 $ 3,886,772 $ 37,379,936 Total Expenditures 29,471,819 378,644 5,132 535,912 3,884,750 34,276,257 Revenues Over (Under) Expenditures $ 3,777,941 $ (309,194) $ 45,340 $ (412,430) $ 2,022 $ 3,103,679 Transfers in 3,359 750,000 322,000 1,075,359
Transfers out (1,252,510) (10,349) (1,262,859)
Proceeds from sale of assets 6,800 - - - - 6,800
Inception of subscription liabilities 20,846 - - - 20,846 Net change in fund balances (deficit) $ 2,556,436 $ (309,194) $ 45,340 $ 337,570 $ 313,673 $ 2,943,825 Beginning of year Fund Balance (deficit) 15,025,352 (40,122) 1,279,643 22,626 8,720,644 25,008,143 End of year Fund Balance (deficit) $ 17,581,788 $ (349,316) $ 1,324,983 $ 360,196 $ 9,034,317 $ 27,951,968 Table 3 - Summary of Changes in Fund Balance - Governmental Funds Fund Name / Type
PGCC 4-2-25

General Fund Budgetary Highlights
Over the course of the year, the City Council revised the City’s budget with adjustments for various revenue and expenditure changes. After taking into account these adjustments, General Fund revenues were higher than the final budget by $1.0 million, which is primarily attributable to higher tax collections and an increase in return on the City’s investments, and General Fund expenditures were under budget by $2 million, due to personnel cost savings resulting from vacancies in several of the City’s departments. Significant variances are shown below:

Original Final
Functions/Programs Budget Budget Actual Variance
Revenues
Taxes
Property taxes $ 9,609,000 $ 9,881,000 $ 10,001,561 $ 120,561 Sales and use taxes 5,957,000 6,039,000 5,975,031 (63,969) Franchise and other taxes 1,585,000 1,625,000 1,635,968 10,968 Transient occupancy taxes 6,562,000 6,840,000 6,820,365 (19,635) Utility user taxes 2,005,000 2,003,000 2,118,068 115,068 Business license tax 370,000 385,000 607,647 222,647
Other taxes 187,000 182,000 177,881 (4,119)
Total Taxes 26,275,000 26,955,000 27,336,521 381,521
Intergovernmental 41,000 234,000 278,308 44,308
Licenses, permits and impact fees 885,000 1,318,000 1,322,285 4,285 Fines and Forfeitures 530,000 394,000 314,242 (79,758)
Charges for services 1,643,000 1,783,000 1,737,498 (45,502) Interest, rents and concessions 436,750 603,057 1,125,585 522,528 Other revenues 1,362,787 1,001,100 1,135,321 134,221
Total Revenues 31,173,537 32,288,157 33,249,760 961,603 Expenses
General government 5,322,421 5,673,734 5,305,657 368,077 Public safety -
Police 8,305,755 8,116,264 7,850,494 265,770
Fire 4,425,400 4,521,532 4,508,537 12,995
Public works 4,967,832 4,998,854 4,399,769 599,085
Recreation 1,101,418 1,403,404 1,224,512 178,892
Library 1,143,910 1,172,182 1,129,218 42,964
Museum 337,400 343,400 346,494 (3,094)
Community development 3,006,773 3,881,283 2,908,796 972,487 Capital Outlay 215,000 362,222 291,690 70,532
Debt Service: -
Principal retirement 498,070 498,020 576,256 (78,236)
Interest 930,396 930,396 930,396 -
Total Expenses 30,254,375 31,901,291 29,471,819 2,429,472 Other Financing Uses (Net) (1,784,187) (1,596,500) (1,221,505) (374,995) Increase / (Decrease) in Net Position (865,025) (1,209,634) 2,556,436 (3,766,070) Net Position, Beginning of Year 15,025,352
Net Position, End of Year ` $ 17,581,788
General Fund Budget Actual
PGCC 4-2-25

Financial Analysis of the City’s Proprietary Funds
These funds provide the same type of information found in the Government-Wide Financial Statements but in more detail. Factors concerning these funds have previously been addressed in the discussion of business-type activities under the Government-Wide Statements.

Governmental
Activities
Local Golf Internal
Cemetery Water Sewer Course Service
Fund Project Fund Fund Fund Total Funds
Total Operating Revenues $ 716,931 $ 1,026,820 $ 3,829,192 $ 745,216 $ 6,318,159 $ 2,014,597 Total Operating Expenses 452,270 1,179,528 2,021,906 405,786 4,059,490 1,388,276 Revenues Over (Under) Expenses $ 264,661 $ (152,708) $ 1,807,286 $ 339,430 $ 2,258,669 $ 626,321 Transfers in 187,500 187,500
Investment Earnings 47,725 3,111 368,224 92,410 511,470 45,683 Interest Expense (44,796) (20,349) (62,981) (128,126) (9,246) Net change in Net Position $ 312,386 $ (6,893) $ 2,155,161 $ 368,859 $ 2,829,513 $ 662,758 Beginning of year Net Position 933,230 1,109,022 23,124,603 3,684,293 28,851,148 128,957 End of year Net Position $ 1,245,616 $ 1,102,129 $ 25,279,764 $ 4,053,152 $ 31,680,661 $ 791,715 Ending Working Capital $ 1,086,245 $ (222,566) $ 8,761,146 $ 1,026,041 $ 10,650,866 $ 920,672 Summary of Changes in Net Position - Proprietary Funds
Business Type Activities
PGCC 4-2-25

Capital Assets
The City of Pacific Grove’s investment in capital assets as of June 30, 2024 amounts to $71.9 million (net of accumulated depreciation and amortization).

This includes net capital assets from governmental activities of $43.4 million and net capital assets from business type activities at $28.5 million. This investment in capital assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, roads, and sewer systems. The table below summarizes the City’s capital assets net of depreciation:

The City had the following capital commitments outstanding as of June 30, 2024:

Capital Commitment 2024 2025
Street Improvements $785,877 $785,877
Facility Improvements 52,014 52,014
Park Improvements 8,131 8,131
Total $846,022 $846,022
Major capital projects and capital outlay during the fiscal year included the following:
• Phase 9 Sewer Improvements
• Street Rehabilitation Project
• Street Crack and Slurry Seal
• Cedar, Sunset and Congress Intersection
• Sewer Pump Station Replacement
• Design of Sidewalk Extension for Outdoor Dining
• Backstop Replacement Municipal Ball Park
• Reconstruction Public Works Facilities
• George Washington Park Enhancements
Additional information on capital asset activity is described in the notes to the financial statements. 2024 2023 2024 2023 2024 2023 % Change
Land $ 2,338,270 $ 2,338,270 $ 362,953 $ 362,973 $ 2,701,223 $ 2,701,243 0% Construction in progress 5,524,639 5,603,986 983,414 436,247 6,508,053 6,040,233 8% Buildings and improvement 8,448,463 8,841,034 4,608,292 4,813,851 13,056,755 13,654,885 -4% Infrastructure 25,910,303 24,691,259 22,135,513 22,458,821 48,045,816 47,150,080 2% Machinery and equipment 883,493 798,968 393,898 459,805 1,277,391 1,258,773 1% Subscriptions (SBITAs)
298,136 429,597 - 298,136 429,597 100%
Total Capital Assets, Net $ 43,403,304 $ 42,703,114 $ 28,484,070 $ 28,531,697 $ 71,887,374 $ 70,805,214 2% Summary of Capital Assets at Year End
Governmental Activities Business-type Activities Totals PGCC 4-2-25

Long-Term Debt, Pension and Other Post Employment Benefit (OPEB) Obligations The City’s net pension and net OPEB obligations as of June 30, 2024 were $55.0 million and $3.0 million respectively. As of June 30, 2023, the City’s net pension obligation was 76.7% funded.

During the year, Long-Term Debt from governmental activities decreased by $0.9 million, primarily due to regular debt service payments. Long-term debt attributable to business type activities decreased by $0.4 million due to regular debt service payments on the following bond issues:

Pension Obligation Bonds
In 2006, the City issued Taxable Pension Obligation Bonds in the principal amount of $19.4 million. The bonds were part of the California Statewide Communities Development Authority Taxable Pension Obligation Bonds Program.

Clean Water State Revolving Fund Loan
In 2015, the City secured State Water Resources Control Board ("SWRCB") funding for $5.3 million to construct a recycled water treatment plant, sewer diversion structure, waste pump station, and user connections.

Golf Course COP Refunding / 2013 Wastewater Revenue Refunding Bond The City entered into a $3.1 million Site Lease with Umpqua Bank to refund its 2014 Golf Course Certificate of Participation, secured by the transfer of property rights to Umpqua Bank. - The City issued Wastewater Revenue Refunding Bonds for $1.2 million, which refinances the California State Community Development Authority Series 2001B Revenue Bonds.

The following table summarizes the City’s debt at the end of the year:

City Bond Rating / GO Bonds - Standard and Poor’s Rating Services and Moody’s Investor Services Inc., assigned a rating of SP-1+ and MIG 1, respectively, to the City’s 2006 Pension Obligation Bonds. The City has not received any updates to this rating. The City does not have any General Obligation Bonds (GO). The California Government Code, Section 43605 caps GO debt at 15% of the assessed value of all real and personal property within the City. The legal debt margin based upon the Fiscal Year 23-24 ACFR is $713 million.

Additional information on these obligations is described in the notes to the financial statements. 2024 2023 % Change Maturity Interest
Pension Obligation Bonds 6,458,191 $ 7,403,565 -12.8% 2029 5.67-6.12% PG&E Loan 31,403 51,451 -39.0% Varies Varies
SBITA Liability 200,738 317,788 -36.8% Varies Varies
Total outstanding long-term debt $ 6,690,332 $ 7,772,804 -13.9% 2024 2023 % Change Maturity Interest
2013 Wastewater Revenue Refunding Bonds 573,704 $ 639,629 -10.3% 2031 3.35% Golf Course COP Refunding 1,526,268 1,725,451 -11.5% 2030 4.35% Clean Water State Revolving Fund Loan 4,385,661 4,546,643 -3.5% 2048 1% Total outstanding long-term debt $ 6,485,633 $ 6,911,723 -6.2% Summary of Outstanding Long-Term Debt at Fiscal Year End Governmental Activities
Business-type Activities
PGCC 4-2-25