Pacifica City Council
February 10, 2025

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2024

CITY OF PACIFICA

CALIFORNIA
www.cityofpacifica.org
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CITY OF PACIFICA, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Prepared by:

Finance Department
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City of Pacifica
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents
Page
i

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ..................................................................................................................................................... v GFOA Certificate of Achievement ............................................................................................................................. xi Organization Chart...................................................................................................................................................... xii City Executive Staff .................................................................................................................................................... xiii

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................... 1 Management’s Discussion and Analysis ................................................................................................................. 7 Basic Financial Statements:

Government-Wide Financial Statements:

Government-Wide Statement of Net Position .................................................................................................. 28 Government-Wide Statement of Activities ....................................................................................................... 29 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ...................................................................................................................................................... 32 Reconciliation of the Governmental Funds - Balance Sheet to the Government-Wide Statement of Net Position ................................................................................. 33 Statement of Revenues, Expenditures and Changes in Fund Balances ..................................................... 34 Reconciliation of the Net Change in Fund Balances -
Total Governmental Funds with the Statement of Activities ................................................................... 36 Proprietary Fund Financial Statements:

Statement of Net Position ................................................................................................................................. 38 Statement of Revenues, Expenses and Changes in Fund Net Position ...................................................... 39 Statement of Cash Flows ................................................................................................................................... 40 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ............................................................................................................... 42 Statement of Changes in Fiduciary Net Position .......................................................................................... 43 Notes to Basic Financial Statements ...................................................................................................................... 47 City of Pacifica
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents, Continued
Page
ii
FINANCIAL SECTION, Continued
Required Supplementary Information:

Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous ................................. 100 Schedule of Contributions - Miscellaneous ..................................................................................................... 102 Schedule of Proportionate Share of Net Pension Liability and Related Rations As of the Measurement Date – Safety Plan ................................................................................................... 104 Schedule of Contributions – Safety Plan.......................................................................................................... 106 Schedule of Changes in Net Pension Liability and Related Rations PARS ................................................ 108 Schedule of Contributions - PARS .................................................................................................................... 110 Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................................... 112 Schedule of OPEB Contributions ...................................................................................................................... 114 Notes to Required Supplementary Information ............................................................................................. 115 Budgetary Comparison Schedule:

General Fund .................................................................................................................................................... 116 Supplementary Information:

Budgetary Comparison Schedule:

General Capital Improvement – Capital Projects Fund .................................................................................. 120 Nonmajor Governmental Funds:

Combining Balance Sheet .................................................................................................................................. 124 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 130 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ........................................................................................................................................... 135 Internal Service Funds:

Combining Statement of Net Position ............................................................................................................. 159 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................................. 160 Combining Statement of Cash Flows ............................................................................................................... 161 Statistical Section:

Financial Trends:

Net Position by Component .............................................................................................................................. 164 Changes in Net Position ..................................................................................................................................... 166 Fund Balances in Governmental Funds ........................................................................................................... 168 Changes in Fund Balances of Governmental Funds ...................................................................................... 170 City of Pacifica
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents, Continued
Page
iii
Statistical Section, Continued:

Revenue Capacity:

Taxable Sales by Category ................................................................................................................................. 172 Direct and Overlapping Sales Tax Rates ......................................................................................................... 173 Tax Revenues by Source .................................................................................................................................... 174 Assessed Valuation, Tax Rate and Tax Levies ................................................................................................ 175 Direct and Overlapping Property Tax Rates ................................................................................................... 176 Principal Property Taxpayers ............................................................................................................................ 177 Property Tax Levies and Collections ................................................................................................................ 178 Debt Capacity:

Outstanding Debt by Type – Governmental ................................................................................................... 179 Ratios of Outstanding Debt by Type – Business-Type .................................................................................. 180 Direct and Overlapping Governmental Activities Debt ................................................................................ 181 Legal Debt Margin Information ........................................................................................................................ 182 Wastewater Obligations Pledged Revenue Coverage ................................................................................... 183 Demographic and Economic Information:

Demographic and Economic Statistics ............................................................................................................. 184 Principal Employers ........................................................................................................................................... 185 Operating Information:

Full Time Equivalent Employees by Function/Program .............................................................................. 186 Operating Indicators by Function/Program ................................................................................................... 187 Capital Asset Statistics by Function/Program ............................................................................................... 188 Sewer Rates .......................................................................................................................................................... 189 iv
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February 5, 2025
Honorable Mayor, Members of the City Council, and Citizens of the City of Pacifica, California:

We are pleased to submit the City of Pacifica's Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024. The purpose of this report is to provide the City Council, City Staff, residents of Pacifica, and other interested parties with accurate, complete, and fair data and helpful information concerning the City's operations and financial position.

The report is prepared in accordance with Generally Accepted Accounting Principles (GAAP) as set by the Governmental Accounting Standards Board (GASB) and audited in accordance with generally accepted auditing standards by an independent firm of certified public accountants. This report conforms to GASB Statement 34 financial reporting standards, including dual-perspective financials showing both an entity-wide view of all governmental and business-type activities and a detailed focus on the financial position and operating results of the City's major funds.

We believe the report contains all disclosures necessary for the reader to understand the City's financial affairs. State law requires every general-purpose government to publish a complete set of audited financial statements. Professional standards encourage this report to be published within sufficient time to allow the government to remedy any deficiencies while minimizing negative impacts. This report is issued to fulfill that requirement for the fiscal year ended June 30, 2024.

Management assumes full responsibility for the completeness and reliability of the information contained in the ACFR based upon a comprehensive framework of internal control that it has established for this purpose.

Stewardship and Internal Control
This report consists of management's representations concerning the finances of the City of Pacifica and promotes accountability. Consequently, responsibility for both the accuracy of the data and the fairness of this presentation, including all disclosures, rests with City management.

To provide a reasonable basis for making these representations, management has established a comprehensive framework of internal control designed to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of financial statements in conformity with GAAP to:
 Safeguard City assets from loss or unauthorized use or disposal.  Provide reliable financial records for preparing internal and external financial reports and for maintaining accountability over City Assets.
 Ensure compliance with applicable Federal and State laws and regulations related to programs for which the City receives assistance.

CITY OF PACIFICA
170 Santa Maria Avenue • Pacifica, California 94044-2506 www.cityofpacifica.org
MAYOR
Sue Beckmeyer

MAYOR PRO TEM
Mary Bier

COUNCIL
Christine Boles
Mayra Espinosa
Scenic Pacifica Greg Wright
Incorporated November
22, 1957
v
As the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable rather than an absolute assurance that the financial statements are free of any material misstatements.

Management believes that the City's internal controls reasonably safeguard assets, assure that financial transactions are properly recorded and reported, and ensure compliance with applicable Federal and State laws and regulations. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to represent fairly the financial position and results of operation of the City's various funds. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included.

State statutes require an annual audit by independent certified public accountants. The purpose of the audit is to provide reasonable assurance that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework. The City's independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The City's independent auditor, Badawi & Associates, a firm of licensed certified public accountants, has issued an unmodified ("clean") opinion on the City of Pacifica's financial statements for the fiscal year ended June 30, 2024. The independent auditor's report is located at the front of the financial section of this report.

In addition to meeting the requirements set forth by State law, the audit is also designed to meet the requirements of the Single Audit Act of 1984 and 2 CFR part 200, subpart F. The standards governing Single Audit engagements require the auditor to report on the City's internal controls and compliance with certain legal requirements with special emphasis on the administration of federal awards. These reports are available in the City's separately issued Single Audit Report.

The ACFR report is presented in three sections:
 The Introduction section includes this letter of transmittal, the City's organizational chart, and certificates of achievement.
 The Financial section includes the report of the independent auditors; Management's Discussion and Analysis (MD&A); the basic financial statements, including governmentwide financial statements; and the accompanying notes. Required supplementary information other than the MD&A is also included in the financial section.  The Statistical section includes selected financial and demographic information presented on a multi-year basis.

The notes to the financial statements are provided in the financial section and are considered essential to fair presentation and adequate disclosure. The notes include the summary of significant accounting policies for the City and other necessary disclosure of important matters relating to the City's financial position. The notes are an integral part of the financial statements and should be read in conjunction with them.

GAAP and the Governmental Accounting Standards Board require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors.

City of Pacifica Profile
The City of Pacifica is a full-service city located on the Pacific Coast in San Mateo County, south of San Francisco. Situated within the Bay Area Peninsula, it is framed by the ridges of the Coast Range on the east, the Montara Mountains on the south, and the Pacific Ocean on the west. The vi
City of Pacifica encompasses roughly 12.6 square miles (of which approximately one-half is publicly owned and protected open space) and serves a population of approximately 37,000. A combination of residential, office, and commercial retail businesses, and natural open space, comprise the makeup of the City. The City of Pacifica, while located in the midst of a major metropolitan region, is a unique family-oriented coastal community that prides itself on fostering a "small town" feel. The City's geographic setting, its proximity to San Francisco and the San Francisco International Airport, along with its natural open space and coastal beauty, make it a desirable place to live and work.

The City of Pacifica is a General Law City incorporated in 1957 and operates under the CouncilManager form of government. Legislative authority is vested in a five-member City Council elected by district for four-year overlapping terms. The Mayor is selected each year by a majority vote of the Council members. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing advisory commissions/committees, and hiring both the City Manager and City Attorney, who are retained on a contract basis. The City Manager, in turn, appoints the directors of the various City departments.

The City provides a range of services to its residents, including but not limited to public safety (police and fire), streets, wastewater and stormwater infrastructure, parks, beaches, and recreation, planning and zoning, and overall leadership through general administrative services.

Water, gas, and electric utilities, social services, garbage and recycling are provided directly through other agencies not under City operations.

The City performed certain infrastructure construction and economic development activities through a separate Redevelopment Agency until its dissolution on February 1, 2012. The City accepted the role of Successor Agency to the Redevelopment Agency per Council action on January 23, 2012.

Budget Process
The City maintains budgetary controls, the objective of which is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City's governing body.

Activities of the general fund, special revenue funds, enterprise funds, debt service funds, and internal service funds are included in the annual appropriated budget. The Capital Improvement Projects budget reflects existing projects that do not lapse at year-end but are carried forward until completion of the project.

The City's budget process goals are to identify necessary and/or desirable service-level options, which are all combined to reach a balanced and sustainable budget. Each City department is provided with a base budget with certain inflationary increases and is given an opportunity to request additional funding if needed. The City Manager, Assistant City Manager, Administrative Services and Finance Director, and Deputy Finance Director meet with each department individually to discuss and finalize the proposed budget recommendations. The City Manager then presents the proposed budget to the Council for review prior to the end of May every year. The Council holds a public hearing on the proposed budget and is required to adopt a final budget by no later than the end of June, the close of the City's fiscal year.

The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is maintained at the department level by tracking expenditures and budget authority. Unexpended budget appropriations lapse at the end of the fiscal year with the exception of capital improvement projects. The City Manager is responsible for the preparation of the budget, and along with the Assistant City Manager and Administrative Services Director, is responsible for monitoring the budget for legal compliance.

The annual budget serves as the foundation for the City of Pacifica's financial planning and control.

The budget is prepared by fund, and by department (e.g., Police, Fire, Planning, Parks, Beaches and Recreation, Public Works, Administration). The City Manager may transfer resources within a vii
department as he sees fit. Transfers of appropriations between funds need special approval from the Council. City Council may amend the budget by resolution during the fiscal year. The Fiscal Year ("FY") 2023-24 Mid-Year Budget Adjustments were adopted by Council via Resolution No. 32-2023 on March 27, 2024. Budgets are adopted on accrual basis consistent with GAAP. Budgetto-actual comparisons are presented in the supplementary section of the accompanying financial statements for each governmental fund for which an appropriated annual budget has been adopted.

Economic Factors and Financial Outlook
The section below provides outlooks at the national, state and local levels; historically, economic trends at the local level generally follow national and state trends.

National Level Economic Outlook
At the national level, the economy continues to expand at a moderate rate, with Gross Domestic Product (GDP) increasing at an annual rate of 3.0 percent for the second quarter of 2024. As the Federal Open Market Committee continues to focus on returning the inflation rate to 2 percent, they voted at the December 2024 meeting to lower the target range for the federal funds rate by a ¼ percentage point. According to the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers increased at an annual rate of 3.3 percent as of the twelve months ended on June 30, 2024, up from the June 30, 2023, 12-month increase in overall prices of 3.0 percent.

The U.S. Census Bureau and U.S. Department of Housing and Urban Development jointly reported that housing starts in June 2024 decreased 3.0 percent from May 2024 and were 4.4 percent below the June 2023 level. Permits for new construction, a sign of future demand, have increased

3.4 percent from May to June 2024 but are 3.1 percent below the June 2023 level.

Active housing listings increased 36.7 percent nationally over the last year, according to a report from Realtor.com, while the total inventory of unsold homes increased by 22.4 percent. The median price of homes for sale remained stable compared with last year however, the median price per square foot grew by 3.4%, indicating that the inventory of smaller and more affordable homes has grown in share. The typical home spent 45 days on the market in June 2024, compared to nearly identical average of 44 days during June 2023.

According to the Bureau of Labor Statistics, the national unemployment rate increased to 4.3 percent in June 2024, when compared to the 3.6 percent unemployment rate from June 2023. The number of jobs added to nonfarm payroll from May 2024 to June 2024 was 206,000. Notable employment gains in June 2024 occurred in government, healthcare, social assistance, and construction.

State Budget and Economic Outlook
According to the September 20, 2024, report from the California Employment Development Department (EDD), California’s seasonally adjusted unemployment rate moved to 5.3% after three consecutive months at 5.2%. In related data that figures into the state’s unemployment rate, there were 381,123 people certifying for unemployment insurance benefits during the June 2024 sample week, this is up 1,707 from June 2023 claims.

A report from the California Association of Realtors showed that in June 2024 the statewide median home price was $900,720, an increase of 7.5 percent over the last year’s $838,260. An expected decrease in mortgage rates at the tail end of home buying season may influence previously sidelined buyers to reenter the market.

As of January 10, 2025, California's budget outlook has a slight surplus of $363 million for the 2025-26 budget process. This comes after two consecutive years of state budget deficits. The governor’s proposal would draw down $7.1 billion in reserves and projects $16.5 billion in additional revenue compared to estimates from last June, which is majorly comprised of a $12.6 billion increase in projected personal income tax revenue. The $229 billion General Fund spending plan would protect investments made in prior years such as $7.1 billion to support current childcare viii
and development programs and $2.7 billion in climate action programs but does not propose any significant new investments such as those to address affordability challenges confronting millions of Californians or major tax policy changes to increase state revenues.

Local Economy
According to the California Employment Development Department, as of June 2024, there were an estimated 435,600 jobs in San Mateo County, a decrease of 7,300 jobs from June 2023. The unemployment rate in San Mateo County has increased slightly from 3.1% in June 2023 to 3.5% in June 2024. This is 1-2% lower comparatively with an unadjusted unemployment rate of 5.2% for California and 4.3% for the nation during the same period. As of June 2024, there were 1,025,300 jobs reported in Santa Clara County, an area to which our economic fortunes are closely linked. This represents a decrease of about 7,000 jobs from one year earlier. Santa Clara County’s unemployment rate has increased from 3.7% in June 2023 to 4.2% in June 2024.

Similar to the State level economics, the local economy has experienced job growth and an overall improvement in economically sensitive revenue sources such as transient occupancy tax, on-theground retail sales tax and online sales. In addition, the City's largest revenue source, property tax, has also been positively impacted by rising prices, but will be relatively flat for the next few years given the slow down in home sales and the slight decline in values as a result of the increase in mortgage interest rates.

In April 2021, San Mateo County was the first county in California where the median sales price for single-family homes exceeded $2 million. According to data from the California Association of Realtors, the median price of a single-family home in San Mateo County increased by 5.4% from $2.04 million in June 2023 to $2.15 million in June 2024. In Pacifica, the median price of a singlefamily home stayed stable as over the last year at $1.2 million in June 2024.

Fund Balance and Long-Term Financial Planning
The City of Pacifica has continued to be fiscally conservative in financial investments, as well as with the development of a Long-Term Financial Plan. The long-term financial plan of the City includes cost containment strategies and a comprehensive cost recovery program, both designed to ensure the long-term financial health of the City. The forecast considers current revenue and expenditure trends at the base budget and projected forward and does not assume ongoing contributions to the capital improvement program, nor does it take into account any future potential revenue measures. The last LongTerm Financial Plan was presented to the City Council on May 13, 2024, and it projected that the City's Operating Budget covering ongoing services to the Community will remain in balance during FY2024-25. However, the May 13, 2024, financial plan also projected a structural deficit starting in FY2026-27 and continuing until FY 2030-31 (projected payoff timeline of the Pension Obligation Bonds). Additionally, it forecasted that by FY 2028-29, the unassigned fund balance would fall below the GFOA-recommended guidelines of two months of operating expenditures. It is important to note that the deficit could occur as early as the upcoming year if the state does not follow through on its VLF In-Lieu Backfill obligations.

The City remains vigilant in its efforts to continue to provide essential City services while maintaining sufficient levels of fiscal control and accountability. The next update to the Long-Term Financial Plan is expected after the mid-year budget review.

The City's total Fund Balance in the General Fund is $18.7 million as of June 30, 2024. The Fund Balance is comprised of four components; a Non-spendable portion of $8 thousand; an Assigned portion of $5.7 million which includes the Budget Shortfall Reserve amount of $4.7 million; a ix
Restricted portion of $0.3 million for Pension Trust; leaving an Unassigned portion of $12.6 million.

The Unassigned portion of the General Fund totals 30.6% of total general fund expenditures and is in addition to the minimum policy guideline of 10 percent of total general fund operating expenditures set by the Council for budgetary shortfall policy and planning purposes.

Acknowledgments
Government Finance Officers Association of the United States and Canada (“GFOA”) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report (“Annual Report”) for the fiscal year ended June 30, 2024. This was the third year that the City has achieved this prestigious award in recent history. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Annual Report. The report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that the current Annual Report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

Our goal is to publish financial information that is helpful to policy leaders and the public.

Preparation of the Annual Comprehensive Financial Report was made possible by the dedicated service of the entire staff of the City of Pacifica Finance Division. We sincerely appreciate all who contributed to the fiscal year-end audit and dedicated their continuing efforts to improving the quality of this report. We would like to take an opportunity to acknowledge the extraordinary efforts and hard work of Marisol Gómez, Administrative Services and Finance Director, Lucy Xie, Deputy Finance Director, Spencer Tseng, Senior Accountant, Stephanie Coy, Financial Analyst, and Accounting Consultant Matt Pressey, for their dedicated work coordinating and executing the yearend closure and preparation for the audit, as well as commitment to continue improving the City's financial management and reporting.

We also commend the audit team from Badawi and Associates for their professional work, dedication, competence, and diligence in ongoing assistance during the audit process and throughout the year. Finally, we would like to express our appreciation to the City Council for their attention and unfailing support of maintaining the highest standards of professionalism in managing the City's finances in a responsible and conservative manner in the best interests of the citizens of Pacifica with the emphasis on transparency, ethics, and fiscal responsibility.

Respectfully submitted,
Kevin Woodhouse Yulia Carter
City Manager Assistant City Manager
x
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pacifica
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
xi
Planning
Commission
Open Space &
Parkland
Advisory
Committee
Economic
Development
Committee
Beautification
Advisory
Committee
Library
Advisory
Committee
Emergency
Preparedness &
Safety
Commission
Parks,
Beaches &
Recreation
Commission
Measure Y
Citizens'
Oversight
Committee
City Manager City Attorney
General
Government
Administrative
Services
Community
Development Police Fire Parks, Beaches
and Recreation Public Works
City Manager's
Office Finance Planning Juvenile Services
Emergency
Services Administration Engineering
City Clerk Human
Resources Building Investigation Services
Non Emergency
Services
Community
Center Field Services
Economic
Development
Information
Technology
Code
Enforcement
Narcotics Task
Force
Paramedic
Services
School Age
Recreation
Waste Water
Treatment Plant
Risk
Management Records Special Events
Waste Water
Collection
System
Disaster
Prepardness Senior Services
Patrol Services Aquatics
Traffic Safety Child Care
Crime
Prevention
Divisions
City Council
Residents of Pacifica
City of Pacifica Organization Chart
Departments
xii

SUE VATERLAUS
MAYOR

SUE BECKMEYER

MAYOR PRO TEM

MARY BIER

TYGARJAS BIGSTYCK

CHRISTINE BOLES

MEMBERS OF THE COUNCIL
* * * * *

KEVIN WOODHOUSE

CITY MANAGER
* * * * *

MICHELLE MARCHETTA KENYON

CITY ATTORNEY
* * * * *
OTHER ADMINISTRATIVE OFFICERS:

YULIA CARTER ASSISTANT CITY MANAGER

VACANT DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES

VACANT DIRECTOR OF COMMUNITY DEVELOPMENT

RON MYERS FIRE CHIEF

MARIA SARASUA POLICE CHIEF

SCOTT LESLIE INTERIM DIRECTOR OF PARKS, BEACHES &

RECREATION

LISA PETERSON DIRECTOR OF PUBLIC WORKS

SARAH COFFEY CITY CLERK
* * * * * * * * * * *

OFFICIAL COMMISSIONS AND COMMITTEES

BEAUTIFICATION ADVISORY COMMITTEE

CLIMATE ACTION AND ADAPTATION TASK FORCE

ECONOMIC DEVELOPMENT COMMITTEE

EMERGENCY PREPAREDNESS & SAFETY COMMISSION

LIBRARY ADVISORY COMMITTEE

OPEN SPACE AND PARKLAND ADVISORY COMMITTEE

PARKS, BEACHES AND RECREATION COMMISSION

PLANNING COMMISSION
MEASURE Y CITIZENS’ OVERSIGHT COMMITTEE
xiii
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Pacifica
Pacifica, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pacifica (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

To the Honorable Mayor and Members of the City Council
of the City of Pacifica
Pacifica, California

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund, and the required pension and OPEB schedules on pages 7-22 and 100–117 be presented to supplement the basic financial statements.

Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, 2 To the Honorable Mayor and Members of the City Council of the City of Pacifica
Pacifica, California

which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund statements, and the budgetary comparison schedules for the General Capital Improvement Fund and nonmajor governmental funds are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund statements, and the budgetary comparison schedules for the General Capital Improvement Fund and nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund statements, and the budgetary comparison schedules for the General Capital Improvement Fund and nonmajor governmental funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections included in the annual comprehensive financial report but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 5, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The 3 To the Honorable Mayor and Members of the City Council of the City of Pacifica
Pacifica, California

purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
February 5, 2025
4 5
MANAGEMENT’S DISCUSSION

AND ANALYSIS
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City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
7 The City of Pacifica (City) management staff offers readers of the City’s financial statements this narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2024. It has been designed in accordance with standards established by the Governmental Accounting Standards Board. We encourage readers to consider the information presented here in conjunction with the accompanying letter of transmittal and financial statements.

FINANCIAL HIGHLIGHTS
CITY-WIDE:
 Total City assets decreased by $1.2 million to $247,082,908, of which $153,466,905 represented governmental assets and $93,616,003 represented business-type assets.  City deferred outflows related to pension, other post-employment benefits (“OPEB”), and deferred losses on debt refunding decreased by $3,042,156 to $28,883,863, of which $26,520,040 represented governmental deferred outflows pertaining to pension and other post-employment benefits and $1,592,838 represented business-type deferred outflows related to pension and other post-employment benefits.
 Total City liabilities decreased by $726,796 to $164,441,636, of which $104,519,451 million were governmental liabilities and $59,922,185 million were business-type liabilities.  Total City deferred inflows of resources decreased by $4,143,937 to $6,039,778, of which $5,321,486 were governmental deferred inflows related to pension and other post-employment benefits, and $718,292 were business-type deferred inflows pertaining to pension and other postemployment benefits.  The City’s assets and deferred outflows of resources exceeded the liabilities and deferred inflows by $105,485,357 (“net position”), which increased by $3,357,983 compared with the prior year’s restated balance of $102,127,374. This comes from a detailed combination of factors: an increase of $11,762,732 in net investment in capital assets that is not available for future appropriations as a result of capitalization of the Civic Center Renovation Project, Beach Blvd Seawall Reconstruction Project, Linda Mar Pump Station Rebuild and Ultra Violet Disinfection Project, an increase of $1,261,479 in restricted net position, and an increase of $9,666,228 in the unrestricted negative net position to negative $41,080,755. The large negative unrestricted net position stems from implementing GASB Statements No. 68 and 75, accounting for Pension and OPEB liabilities, since 2014-2015. Please see Notes 6 and 7 for related disclosures.  Citywide revenues were $77,811,431, of which, excluding interfund transfers, $56,953,471 were generated by governmental activities, which decreased by $5,156,918. Revenue declined yearover-year due to the prior year’s ARPA funding not recurring with the first payment in FY2022 and the second (and final) payment in FY2023, and $20,857,960 were generated by business-type activities, which also decreased by $315,189.
 Citywide expenses were $74,453,448, of which $55,522,760 were incurred by governmental activities, an increase of $11,252,492 compared with the fiscal year 2022-23, primarily due to accrued pension-related expense increase of $6 million to Public Safety and $18,930,688 were incurred by business-type activities, an increase of $401,373, primarily due to two big projects:

Linda Mar Pump Station and Ultra Violet Disinfection Project, after accounting for capitalization and depreciation.

City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
8 FUND LEVEL:
 The City’s governmental funds reported combined fund balances of $40,551,281, a decrease of $2,655,337 compared to restated prior year balance of $43,206,618 primarily as a result of the Civic Center Renovation project. The Enterprise Funds’ net position increased by $948,572 to $34,733,188 from the restated prior year of $33,784,616, and the Internal Service Funds' net position decreased by $343,703 to $4,006,949 from $4,350,652 in the prior year as restated (Note 13B).
 The General Fund's assets exceeded its liabilities, resulting in an ending fund balance of $18,740,450, a decrease of $1.8 million from the prior year's revenues, because the City received the final installment of the American Rescue Plan Act (ARPA) funds last year. Of the ending fund balance, $8,287 is non-spendable, which consists solely of prepaid items, the restricted fund balance of $375,291 is from the Pension Trust, $5,728,467 is assigned, which includes fund balance reserve requirement of $4,728,876 and other fund balance requirements per council for specific purposes. The remaining unassigned portion of the fund balance of $12,628,405 is available and may be used to meet the government’s ongoing obligations to citizens and creditors.  The total assets of the Business-type activities – Enterprise Funds (Sewer and Beach Parking Funds) of the City exceeded its total liabilities by $34,733,188, an increase of $948,572 from the restated prior fiscal year of $33,784,616, primarily due to a $1.2 million increase to investment earnings.
 The net position of internal service funds was $4,006,949, a decrease of $343,703 from the restated prior year’s balance of $4,350,652, primarily due to an increase in insurance costs net of transfers to cover most of the increase.

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This comprehensive annual financial report comprises of six parts to help the readers develop a complete understanding of the City’s financial activities:
1) Introductory section, which includes the Transmittal Letter, city council organization chart, and city executive staff.
2) Management’s Discussion and Analysis (this section). 3) Basic Financial Statements which include the Government-wide and the Fund financial statements along with the Notes to these financial statements 4) Required Supplementary Information.
5) Other supplementary Information.
6) Statistical Information.

The Basic Financial Statements consist of three components: 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to the basic financial statements.

The Government-Wide Financial Statements – These statements include the Statement of Net Position and Statement of Activities. These statements provide a broad overview of the City’s finances, presented in a manner similar to private-sector companies.

The Statement of Net Position presents complete information on the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. Changes in the net position that occur over time may serve as an indicator of the City’s financial position, whether it is improving or deteriorating.

City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
9 The Statement of Activities presents information showing how the City’s net position changed during the current fiscal year. All changes in net position are reported using the “accrual basis of accounting.” Changes are reported when the underlying event giving rise to the changes occurs, regardless of the timing of the related cash flows. Thus, revenue and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods, such as revenues related to uncollected taxes or earned but unused vacation leave.

The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The City's governmental activities consist of general government, public safety, public works, parks, beaches and recreation, and community development. The businesstype activities of the City include sewer utility and beach parking. The government–wide financial statements are prepared on an accrual basis, which means they measure the flow of all economic resources of the City as a whole.

The Fund Financial Statements – A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal and accounting requirements. The City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. Unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources and balances of spendable resources available at the end of the fiscal year.

Such information may be useful in evaluating the City’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, comparing the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements is useful. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions.

Both the Governmental Funds Balance Sheet and the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental activities and governmental funds.

The City has four major governmental funds: General, Disaster Accounting, General Capital Improvement, and Debt Service Fund. Information is presented separately in the Governmental Funds Balance Sheet and the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for these funds. Financial information for the remaining governmental funds is combined into a single, aggregated presentation called Other Governmental Funds.

Individual fund data for these non-major governmental funds is provided by combining statements located elsewhere in the report.

Proprietary funds are used to account for services and activities for which a fee is charged to customers in exchange for city-provided goods or services. Proprietary funds use the “economic resources” measurement focus, concentrating on how transactions and events have affected the fund’s total economic resources. The City maintains two different types of proprietary funds.

City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
10 Enterprise Funds: These funds are used to report business-type activities in the government-wide financial statements. The City has two enterprise funds: Sewer and Beach Parking.

Internal Service Funds: These funds are used to allocate costs internally among the City’s functions.

The City uses internal service funds to account for the maintenance and replacement of its fleet and rolling stock, general liability, worker’s compensation, and dental. These funds are included in governmental activities of the government-wide financial statements because their activities support governmental programs. The internal service funds are then combined into a single, aggregated presentation in the proprietary fund financial statements. Individual data for the internal services funds is provided in the form of combining statements.

Fiduciary funds are used to account for financial resources held for the benefit of parties outside the City government. The City holds these funds in a custodial capacity or as an agent for individuals, private organizations, or other governmental units. Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support the City’s governmental activities.

The Successor Agency to the City of Pacifica Redevelopment Agency Trust Fund was created as a result of the California Supreme Court decision on December 29, 2011, upholding ABx1 26, which eliminated all redevelopment agencies in California and created a process for winding down their operations. Trust funds report an “income statement,” referred to as a Statement of Changes in Fiduciary Net Position.

Notes to the Financial Statements – The notes provide additional details essential to a complete understanding of the information provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found following the fund financial statements in this report.

Required Supplementary Information section of the report provides a budgetary comparison for the major governmental funds. Pension-related schedules can be found here, too.

Other supplementary information section contains the combining and individual fund statements and schedules, which provide information for non-major governmental funds and internal service funds, all of which are presented immediately after the required supplementary information.

Finally, the Statistical information provides readers with the last ten fiscal years' information, such as net position, change in net position, fund balance in governmental funds, assessed values, direct and overlapping property taxes, principal property taxpayers the City of Pacifica has, demographic and economic statistics, principal employers, operating indicators, and capital assets by function.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position may serve over time as a valuable indicator of the City’s financial position. As noted earlier in the financial highlights, Pacifica’s total net position as of June 30, 2024, was $105,485,357, representing an increase of $3,357,983 over the prior year of $102,127,374, as restated. This increase resulted from the following factors: 1) an increase in total assets of $2.3 million; 2) a decrease of $3 million in the deferred outflows of resources related to OPEB and Pension over the prior year; 3) a decrease of $.7 million in liabilities which is primarily the payment of long term City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
11 obligations; 4) A decrease of $4.1 million in deferred inflows of resources from OPEB and Pension based on most recent actuarial reports.

Total assets and deferred outflows of resources were $275,966,771 as of June 30, 2024, reflecting a 2% decrease from the prior year of $280,206,399. Total liabilities and deferred inflows were $170,481,414 as of June 30, 2024, compared with $175,352,147 as of June 30, 2023, reflecting a decrease of 3% (Table 1).

As of June 30, 2024, the City reported positive balances in all categories of net position for the government as a whole except for unrestricted net position that remains negative due to the implementation of GASB Statements No 68 and 75 in the fiscal year 2014-15 that started recording the City’s unfunded liabilities related to pension and OPEB in the annual financial statement.

The largest portion of the city’s net position is its net investment in capital assets, which totals $124.3 million. Capital assets are the aggregate value of land, buildings, and improvements used to provide services and are reported net of any related debt used to acquire those still outstanding assets.

Consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay these debts must be provided from other sources since the capital assets cannot be used to liquidate these liabilities.

The City’s restricted net assets of $22.3 million represent resources subject to external restrictions on how the funds may be used, such as constructing specified capital projects, debt service, or other community programs.

The remaining balance in the unrestricted net position of negative $41.1 million is primarily due to implementing GASB Statements No. 68, 71, and 75 pension and other post-employment benefits related to liability accruals. It is important to note that these long-term obligations are based on actuarial estimates and do not represent a liability due and payable immediately. Please refer to Note City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
12 6 and Note 7 to basic financial statements for more information about the impact of implementing these statements.

Statement of Activities
The Statement of Activities provides information about the City’s revenue and expenses, with an emphasis on measuring net revenues or expenses in each program, explaining in detail the change in Net Position for the year.

The City’s total net position is $105.5 million. The City’s governmental activities' net position increased by $2.4 million to a total net position of $70.8 million at the end of the fiscal year primarily due to property tax growth and overall revenues and transfers in being greater than expenses. Business type activities net position also increased by $0.9 million to a total net position of $34.7 million at the end of the fiscal year, primarily due to improved investment earnings. (Table 2) The City’s total revenues were $77.8 million as of June 30, 2024, a decrease of $5.5 million from the previous fiscal year, with Governmental and Business-Type activities decreasing by $5.2 million and $0.3 million, respectively. Program revenue for both Governmental and Business-type activities City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
13 decreased by $6.5 million from $39.9 million to $33.4 million, with a decrease of $5.4 million in operating contributions and grants in Governmental activities and a decrease of $1.6 million in Business-Type activities, due to a $1.6 million one-time insurance settlement in FY2023 not repeating in FY2024. Revenues from all taxes increased by $0.5 million from $35.9 million to $36.4 million, which includes increases of $3.8 million in property taxes, $1.9 million in sales tax, including an increase of $2.0 million for Measure Y, a decrease of $0.1million in transient occupancy tax, $0.6 million decrease in utility user taxes, an increase in Franchise Tax Revenue by $0.5 million. Motor Vehicle in lieu revenue decreased by $2.0 million because a larger backfill received in the prior year from the State temporarily diverting these funds to cover an ERAF shortfall three years prior (FY2021) and then paying it back two years later (FY2023). The backfill received in FY2023 was $2.0 versus the backfill in FY2024 was only 0.7. It is worth noting that the interest allocation revenue increased by $2.1 million from $1,218,988 in FY2023 to $3,296,838 in FY2024 due to the Finance Department’s efforts to renegotiate new banking contracts that included higher interest rates.

The City’s total program expenses were $74.5 million, an increase of $11.7 million or 18.6% over the prior fiscal year of $62.8 million. The Governmental activities expenses increased by $11.3 million.

The Business-Type activities expenses increased by $0.4 million. Sewer operation included a $0.7 million increase in personnel services, $0.5 decrease in supplies, $0.8 decrease in insurance, $0.6 increase in utility expenses, and a $0.4 increase in depreciation expense. Other categories stayed fairly consistent with the prior year (Table 2).

Governmental Activities Sources of Revenues. In FY2024, the City received nearly 64% of its revenue from taxes, including 35% from property taxes, 16% from other taxes, 10% from sales tax, and 3% from franchise taxes. The City also received 13% in charges for services, 8% from operating contributions and grants, 4% from capital grants, and 7% from Motor Vehicle in Lieu.

Governmental Activities Use of Resources. In FY2024, 82% of expenditures were attributable to direct municipal services such as Public Safety, Public Works, Parks, Beaches and Recreation, and Community Development with 41%, 22%, 12%, and 7%, respectively. This was an increase City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
14 compared with 78% in the prior year. Total expenditures were $55.5 million in FY2024, which was $11.3 million more than $44.2 million for the previous year.

The majority of these governmental activities are financed from City taxes. However, funds collected in program revenues for these various activities served to offset the departmental spending associated with some services. Governmental expenditures totaling $55.5 million were partially offset by program revenues for governmental activities of $14.4 million, a decrease of $5.0 million from $19.4 in the prior year (Table 3). These program revenues included $7.5 million in service charges, $4.4 million in operating grants and contributions, and $2.5 million in capital grants and contributions.

Charges for services include traffic safety fines, plan check fees, building inspection fees, other charges related to new construction, and fees charged for parks, beaches, and recreational events.

Operating grants and contributions include amounts that can only go toward operations-related expenses, while capital grants and contributions are required to go toward capital investments. (Table 2)
City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
15 Business-type Activities
The net position of the City’s business-type activities increased by $0.9 million from a beginning net position, as restated at $33.8 million to $34.7 million. Total revenues were $20.9 million. As mentioned above, the increase is primarily due to an increase of $1.3 million in interest allocation for a total interest revenue of $1.8 million in FY2023-24. It is important to note that the sewer utility rate increase of 3.5% did not result in a projected revenue increase because of the lower residential water usage, leading to a $0.1 million increase in sewer revenues from $18.3 million in FY2023 to $18.4 million in FY2023-24. (Table 2 and Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position)
Business-type expenses totaled $18.9 million at the end of the fiscal year compared to $18.5 million in FY2022-23, which is a $0.4 million or 2.2% increase. Sewer had a $0.7 million increase in personnel services, a $0.5 decrease in supplies, $0.8 decrease in insurance, $0.6 increase in utility expenses, and a $0.4 increase in depreciation expense, and $0.2 million in other operating increases. Beach parking remained relatively flat (Table 2 and Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position)
Sewer Utility Fund also made a transfer-out of $978,700 to the General Liability internal service fund to cover its share of insurance premiums.

Unlike governmental activities, program revenues in business-type activities cover the total cost of operations with no contribution from City taxes. The City periodically reviews and adjusts sewer and parking rates to sufficiently cover expenditures and future liabilities. The adopted five-year annual

3.5% rate increase schedule will be implemented through FY2026-27.

FINANCIAL ANALYSIS OF THE CITY’S MAJOR FUNDS
Governmental funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the financial requirements and stability of the City. Unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

In FY2023-24, the City’s governmental funds reported total fund balances of $40.6 million, a decrease of $2.6 million from restated $43.2 million in the prior fiscal year. The decrease is a result of the following factors: an increase of $1.8 million in the General Fund, a decrease of $4.9 million in the General Capital Improvement Fund for projects like Civic Center Renovation and others, and an increase of $0.4 million in all other governmental funds. The Disaster Accounting Fund and the Debt Service Fund were moved from a major fund to a non-major fund and their change in fund balance is now included with the Other Governmental Fund classification. (Table 4) The General Fund and General Capital Improvement Fund are considered major funds and are reported separately in the basic Financial Statements. As of FY2024, the Disaster Accounting Fund and Debt Service Fund qualify as Nonmajor Governmental Funds and information on these types of funds can be found in the Supplementary Information section of the ACFR.

City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
16 General Fund
The General Fund is the City’s primary operating fund. General Fund revenues totaled $46.5 million in the current fiscal year compared to $49.0 million in the prior fiscal year. The $2.5 million or 5.1% decrease is a result of the following factors: an increase of $0.2 million in property tax, increase of $1.9 million in sale tax due to the new Measure Y passed by Pacifica’s voters, a decrease in the transient occupancy tax (TOT) and utility user tax of $0.1 million and $0.6 million respectively, an increase of $1.5 million from VLF backfill payment, as well as a $0.6 million decrease in charges for services, and an increase of $.5 million in franchise taxes. The Intergovernmental category had the largest decrease from the prior year due to nearly $5.0 million of one-time ARPA funds received in the previous year.

Expenditures totaled $41.2 million, a $1.7 million or 4% decrease from the $42.9 million in the prior year. General government expenditures decreased by $2.1 million from $9.1 million in FY2023, mainly from non-departmental expenses such as a $0.4 million decrease in retirement health; and a budget reporting change in the workers’ compensation and general liability insurance. Workers’ compensation and general liability insurance premiums were previously reported as a nondepartmental expense of the General Fund but are now a transfer out of the General Fund to the Internal Services Risk Management Funds. The police department incurred an increase of $0.5 million primarily due to an increase in personnel cost in patrol services as a result of the implementation of the new MOU provisions and an increase in overtime due to staffing challenges.

The fire department’s expenditures decreased by $0.3 million. Planning department expenditures increased by $0.4 million in contractual services. The Public Works department’s expenditure saw a decrease of $0.3 million, mainly from a decrease in Engineering Services. Parks, Beaches, and Recreation department saw an increase of $0.2 million in department expenditures, mainly due to the budgeted increased cost of instructional classes.

The General Fund also received transfers of $1.3 million from various funds, including the Measure A Street Construction Fund, Gas Tax Fund, and NPDES stormwater Fund, to offset the cost of salaries and benefits for staff directly working in these programs. The General Fund also transferred $4.7 million as this year’s contribution towards the Streets Improvements and other Capital Improvement Projects, the Debt Service Fund to pay city obligations, the General Liability Fund for Insurance premiums, and the Internal Service Fund to fund future replacements and fire equipment City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
17 purchases in the motor pool. Additional information related to these transfers can be found in the Interfund Transactions section - Note 9B in the Notes to the Basic Financial Statements.

The General Fund balance of $18.7 million as of June 30, 2024, showed an increase of $1.8 million from the prior fiscal year’s restated balance of $16.9 million. The City Council assigned $5.7 million in reserves for specific purposes, as further described in Note 10b of the Notes to the Basic Financial Statements. A total of $12.6 million of the General Fund balance remains unassigned, showing a positive increase of $1.5 million from the prior year of $11.1 million.

General Capital Improvement Fund
The General Capital Improvement Fund accounts for funds used for capital improvements and significant maintenance projects. The City’s equipment capitalization policy is on the cost basis of at least $5,000, and the estimated useful life is more than one year. Structures, improvements, and infrastructure are also capitalized upon the projects’ notice of completion. All capital assets are valued at historical cost. For more information on capital assets, please refer to Note 4 on the Notes to the Basic Financial Statement.

The General Capital Improvement Fund incurred expenditures of $8.0 million in accordance with the City’s approved CIP Program. About $5.5 million of this cost was related to the Civic Center project.

Other expenditures included $0.8 million on the Beach Blvd Seawall, and repairs of $0.4 million on the Community Center Roof project. Other notable projects include $0.2 million for Sharp Park Pedestrian Improvement Design, $0.3 million for the Anza/Arguello Interim Storm Drain project, and $0.1 million for the Frontierland Park Parking project. The General Capital Fund received a transfer of $2.6 million from other funds for newly approved projects for the fiscal year. This includes a transfer of $0.7 million from the General Fund for the Civic Center project, and $1.5 million from the Disaster Accounting Fund towards the above-mentioned projects, except the Frontierland Park Parking project, which was funded with the Frontierland Remediation Fund. The negative $4.8 million net change is drawn from the use of fund balance for the previously approved projects in prior years that were launched this year. The General Capital Fund is restricted to the ongoing construction of capital projects. (Table 4)
Proprietary Funds
The City’s proprietary fund statements provide the same information found in the government-wide financial statements. The City’s enterprise funds include the Sewer Utility fund and Beach parking fund, while the Internal Service funds include Self Insurance Dental, Workers’ Compensation, General Liability, Motor Pool Operations, Motor Pool Replacement, and Fire Equipment Replacement Funds. Table 5 shows the change in Net Position for the proprietary funds.

City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
18 Sewer Utility Enterprise Fund
The Sewer Utility Enterprise Fund accounts for the operation and maintenance of the City’s wastewater system, including the operating costs of the wastewater collection system and water recycling plant. It is a major enterprise fund in the proprietary funds.

The fund’s total revenue decreased by $1.6 million from the prior year’s $20.2 million, mainly from a one-time insurance settlement payment of $1.6 million for the Anza Pump station emergency repairs project received in FY2022-23. Despite the budgeted 3.5% sewer rate increase, the actual sewer revenues increased only 0.5% or by $0.1 million due to lower residential water usage.

Total operating expenses of the Sewer Utility Fund increased by $0.5 million, primarily due to a $0.7 million increase in personnel services as a result of new MOU provisions, $0.5 million decrease in supplies, $0.8 million decrease in insurance because of moving it into transfer out category, $0.6 million increase in utility expenses, and a $0.4 million increase in depreciation expense.

The non-operating expenses decreased by $1.4 million to negative $0.2 million from negative $1.6 million in the prior fiscal year. Interest revenue increased by $1.2 million. Interest expense decreased by $0.2 million as a result of a lower principal balance.

The Sewer Utility Fund showed an increase of $1.1 million in the fund’s overall net position of $34.7 million compared to the prior year’s restated $33.6 million. A large portion of the net position is related to the City’s investment in capital assets, resulting in the unrestricted net position of a negative $2.8 million. Sewer Utility Fund uses the full accrual basis of accounting where unfunded OPEB and pension liabilities are recorded, resulting in a negative unrestricted net position.

Internal Service Funds
The Internal Service Funds represent funds to cover employee dental expenses and insurance deductibles for general liability and worker’s compensation. In addition, funds are also set aside to support replacement purchases and the day-to-day operation and maintenance of city vehicles and equipment. The internal service funds experienced a decrease in net position of $0.3 million from the prior year primarily due to an increase in insurance cost. (Table 5).

City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
19 GENERAL FUND BUDGETARY HIGHLIGHTS
Detailed information on budget variances can be found in the Budgetary Comparison Schedule General Fund notes. The Adopted Fiscal Year 2023-24 General Fund budget conservatively assumed slow revenue growth. The ongoing budgeted expenditures were also contained mainly at the same service level within the forecasted revenue to maintain a structurally balanced budget.

Total General Fund revenues were $46.5 million, which is $1.1 million more than the amended budget of $45.4 million. Total expenditures were $41.2 million, $2.7 million less than the amended budget of $43.9 million.

The most significant differences between estimated and actual results were as follows:
 General Fund total revenues exceeded budget by $1.1 million with unbudgeted FEMA reimbursements for the 2023 Winter Storms, a one-time grant for the Child Care program, as well as OES reimbursement for Fire Overtime.
 Intergovernmental revenues exceeded the budget by $0.9 million, primarily due to the state catching up in making payments to the Child Care grant program.  Charges for current services didn’t materialize as expected. The actual revenue receipts were under budget by $0.9 million, mainly due to higher budget assumptions related to costreimbursable Planning application fees, consultant fees, and legal fees that were not realized.

There was also a corresponding decrease in the expenditure budget for Planning costreimbursable services.  General fund total expenditures were under budget by $2.7 million. This favorable variance is mainly due to the delay in cost-reimbursable Planning services for private development, as mentioned in the revenue variance note above. Expenditures in general government were under budget by $1.2 million, primarily due to a timing issue in processing the City Attorney’s invoices for the legal services. This resulted in an artificial decrease, with approximately $0.7 million in budget variance not accrued in time.
 Expenditures in public safety were over budget by $0.4 million primarily because of an increase in salaries, benefits, and overtime costs as a result of the implementation of the new MOU provisions.
 Expenditures in other operating departments, such as Public Works, were under budget by $0.3 million, primarily due to salary savings resulting from the challenging recruitment market and many positions remaining vacant.
 Expenditures for Parks, Beaches, and Recreation aligned with the budget.

CAPITAL ASSETS AND LONG-TERM DEBT ADMINISTRATION
Capital Assets
As reported in the Statement of Net Position, capital assets for the governmental and business-type activities totaled $167.5 million on June 30, 2024, showing an increase of $7.2 million from $160.3 million in the prior fiscal year. The investment in capital assets includes land, construction in progress, buildings, improvements, machinery and equipment, and infrastructure. The City records its capital City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
20 assets at historical cost or estimated historical cost if actual historical cost is unavailable. The City depreciates all capital assets on a straight-line basis over their estimated useful life. The City’s capital assets are summarized in Table 6. Additional information on capital assets may be found in Note 4 in the Notes to the Basic Financial Statements.

Governmental activity's capital assets increased by $7.4 million from the prior year’s $96.3 million to the current year’s $103.8 million. Business Type activities capital assets decreased by $0.2 million from the last fiscal year of $63.9 million to $63.7 million in the current fiscal year.

Long Term Debt
On June 30, 2024, the City’s long-term debt obligations totaled $76.2 million. Governmental Activities had an outstanding debt of approximately $23.7 million, and the business-type activities had an outstanding $52.6 million. Overall, the City-wide total debt decreased from the prior year by $5.1 million in FY2024 due to normal debt service scheduled payments. Additional information on longterm debt activity may be found in Note 5 of the Notes to the Basic Financial Statements.

FY24 FY23 FY24 FY23 FY24 FY23
2016 Certificate of Participation $ 14,378,309 13,503,430 $ - $ $ - $ 14,378,309 13,503,430 $ 2021 Civic Center Debt 3,950,000 4,000,000 - - 3,950,000 4,000,000 2019 Pension Obligation Refunding Bond 7,058,742 6,216,833 798,167 906,258 7,015,000 7,965,000 2014 Wastewater Revenue
Refunding Bond - - 3,921,553 5,635,176 3,921,553 5,635,176 2017 Wastewater Revenue Bond - - 23,801,067 24,612,965 23,801,067 24,612,965 2012 Loan Agreement - - 3,423,802 3,741,239 3,423,802 3,741,239 2023 Ibank Notes Payable - - 20,629,305 21,000,000 20,629,305 21,000,000 Total Debt Outstanding $ 25,437,051 23,670,263 $ 52,573,894 $ 55,895,638 $ 76,244,157 $ 81,332,689 $ Total
Table 7
Outstanding Debt at June 30, 2024
Governmental
Activities
Business-type
Activities
City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
21 ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The City's economic conditions and major initiatives for the coming year are discussed in the accompanying Transmittal Letter.

Development of the Fiscal Year 2024-25 included the current Long-Term Financial Plan that was presented to the City Council on May 13, 2024. With the May 2024 updates, the City's Operating Budget covering ongoing services to the Community will remain in balance during FY2024-25 and the following fiscal year. However, the financial model projected structural deficits starting in FY2026-27, that continued through FY 2030-31 with the projected payoff of the Pension Obligation Bonds in subsequent years.

Overall, the San Francisco Bay Area economy has recovered from the pandemic, exceeding pre-pandemic figures in many economic sectors. According to the 2024 Joint Venture Silicon Valley Index report, the previously reported outmigration over the past few years, which signified the highest on record since the dot-com bust, has finally slowed, and migration into the area is positive for the first time since 2015, however, there is no longer a significant influx of people from other places. Even with these new trends, the Bay Area’s economy continues to grow despite last year’s rounds of layoffs in the tech industry. Inflation has taken off since March 2021, with a high of 8.93% in June 2022, and steadily slowed to 3.3% as of June 2024.

Below are some key points and assumptions applied to the FY2024-2025 budget (additional information can be found in the FY2024-25 Adopted budget document, also available on the city website).

FY2024-25 General Fund Revenue Assumptions
Revenue estimates are based on the most current information from department feedback, external sources, and further analysis. The following revenue assumptions were included in the preparation of the base budget:
 Property Tax is the City's largest revenue source. Historically, Pacifica's property tax base has only very slowly expanded. For the FY 2024-25 Budget, property taxes comprise approximately 35% of City General Fund revenues. Both secured and unsecured property taxes are levied based on the assessed accurate property valuation (the basis for property tax levy) as of January 1, 2024. The FY25 property tax revenues are projected at $16.7 million based on the information provided by the County and HdL, the City's property tax consultant.
 Charges for Services are the second largest revenue category at 15%, which includes building, planning, other permits, recreation revenues and rentals, fines, and reimbursements. The building and planning revenues are projected to increase based on the current activity level and CPI factors. This category shows a decrease of $0.6 million, or 7%.

City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
22  Sales Tax is the City's third-largest revenue category. Based on discussions with the City's sales tax advisor and sales tax projections prepared by HdL, the local sales activities forecast is expected to stay relatively flat, projecting only a 1% or $48,200 increase over the amended FY24 budget.
 Measure Y is included in the Sale Tax category and is a ½ cent Transaction & Use Tax that the voters passed in the City of Pacifica in November 2022. The tax became effective April 1, 2023, and FY 2023-24 was the first full year of collections. HdL projects this revenue to stay flat at $2.5 million in FY 2024-25.
 Motor Vehicle in Lieu (Vehicle License Fee (VLF) is the fourth largest revenue category at 7% of revenues. Through the State, there has been insufficient ERAF to fund the VLF in Lieu allocation for FY 2019-20 through FY 2023-24. Staff has previously reported to the Council a projected loss (delay) of this major revenue stream currently owed to the City by the State.

The projected shortfall for FY2024-25 is unknown at this time. However, the FY2022-23 VLF shortfall of $1.5 million, which is due and payable in FY 2025-26, is not anticipated to be included in the State’s budget at this time, creating an upcoming threat to the City’s financial sustainability. Additionally, the future consistency of this annual revenue stream is uncertain at this time.

FY2025 General Fund Expenditure Assumptions
 Salary and benefits projections include funding for 200.75 full-time equivalent (FTE) positions citywide and include all current MOU provisions. Consistent with the budget strategy approved by the Council, the Base budget includes built-in salary savings in the amount of $1.2 million or 5% of the total salaries and benefits projections. This is the first time in recent years that the budget does not fully fund salaries and benefits. Current recruitment and retention challenges, coupled with ongoing needs to increase organizational capacity and a lack of available funds to do so, call for this new approach, which will likely become an ongoing city strategy moving forward unless the City’s revenue base increases. Funding for part-time positions remains consistent with the prior year's allocation.  FY 2024-25 PERS retirement rates are budgeted as CalPERS provides for classic miscellaneous and safety members and Public Employees' Pension Reform Act (PEPRA) rates for miscellaneous and safety employees without prior municipal experience or who have had a break in service.
 PERS Unfunded Accrued Liability (UAL) payment is budgeted at $5.7 million for Safety and Miscellaneous employees, an increase of approximately $0.9 million or 20%. An additional contribution to the 115 trust administered by Public Agency Retirement Services (PARS) of $167,500 is included to help fund the City's pension obligations in accordance with the Pension Funding Policy. A continuing contribution of $283,750 to PARS is budgeted to fund OPEB's unfunded liability, consistent with the Council funding strategy approved in April 2022.

City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
23  Most Professional Services contractual obligations were increased by 2% over the FY 2023- 24 Revised Budget to account for regular inflationary increases unless the further cost increase was noted and factored into the Budget by operating departments. The General Liability expenses have been moved to the General Liability Internal Service Fund, with a corresponding increase in transfer out to the General Liability Insurance Fund.  Similarly, most Material, Supplies, and Maintenance categories assume a modest 1% increase.
 The Adopted Budget includes a list of service enhancement requests with a total estimated General Fund cost of $1.6 million. These enhancements are further detailed in the FY 2024- 25 Budget document.

Overall, the Adopted FY 2024-25 Budget is balanced and reflects the City Council’s strategic vision, direction, and priorities. Fiscal sustainability remains a top priority as the City continues to deliver quality programs and services in a financially sustainable manner. City staff looks forward to collaborating with the City Council and the community to ensure Pacifica remains a desirable place to live, work, and play.

REQUEST FOR INFORMATION
This report is designed to provide citizens, taxpayers, investors, and creditors with a general overview of the City's finances and show its accountability for the money it receives.

Questions concerning any of the information provided in this report or requests for additional financial information should be directed to:

City of Pacifica
Finance Department
Attn: Marisol Gómez, Administrative Services and Finance Director 170 Santa Maria Avenue, Pacifica, California 94044.

An electronic version of this financial report is available at the City’s website at http://www.cityofpacifica.org.

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24 BASIC

FINANCIAL STATEMENTS
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26 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
27 City of Pacifica
Statement of Net Position
June 30, 2024
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 35,121,941 $ 3,922,491 $ 39,044,432 Cash and investments with fiscal agents 4,397,917 25,474,467 29,872,384 Restricted cash and investments 3,077,644 - 3,077,644
Receivables:

Accounts receivable, net of allowance 6,895,401 14,672 6,910,073 Interest receivable 77,597 90,630 168,227
Prepaid costs 122,195 390,494 512,689
Total current assets 49,692,695 29,892,754 79,585,449
Noncurrent assets:

Capital assets:

Nondepreciable 59,267,647 6,032,930 65,300,577
Depreciable 89,277,355 140,245,916 229,523,271
Less accumulated depreciation (44,770,792) (82,555,597) (127,326,389) Total capital assets 103,774,210 63,723,249 167,497,459 Total noncurrent assets 103,774,210 63,723,249 167,497,459 Total assets 153,466,905 93,616,003 247,082,908

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding of debt 606,161 164,824 770,985 Related to pension 25,513,053 1,371,792 26,884,845
Related to OPEB 1,006,987 221,046 1,228,033
Total deferred outflows of resources 27,126,201 1,757,662 28,883,863

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 5,177,605 1,564,622 6,742,227 Interest payable 317,524 596,356 913,880
Refundable deposits 669,992 - 669,992
Compensated absences - current 980,498 189,215 1,169,713 Claims payable - current 34,985 - 34,985
Long-term debt - current portion 1,734,513 3,195,097 4,929,610 Total current liabilities 8,915,117 5,545,290 14,460,407 Noncurrent liabilities:

Compensated absences 739,674 131,489 871,163
Claims payable 139,938 - 139,938
Net pension liability 69,306,354 4,102,132 73,408,486
Net OPEB liability 3,482,618 764,477 4,247,095
Long-term debt 21,935,750 49,378,797 71,314,547
Total noncurrent liabilities 95,604,334 54,376,895 149,981,229 Total liabilities 104,519,451 59,922,185 164,441,636

DEFERRED INFLOWS OF RESOURCES
Related to pension 2,339,845 63,785 2,403,630
Related to OPEB 2,981,641 654,507 3,636,148
Total deferred inflows of resources 5,321,486 718,292 6,039,778

NET POSITION
Net investment in capital assets 86,677,910 37,586,813 124,264,723 Restricted for:

Construction of capital assets 6,167,697 - 6,167,697
Streets, highways, and other related purposes 3,883,157 - 3,883,157 Parks, beaches, and recreation 4,554,438 - 4,554,438
Stormwater operations 183,452 - 183,452
Public safety 7,512,645 - 7,512,645
Total restricted 22,301,389 - 22,301,389
Unrestricted (38,227,130) (2,853,625) (41,080,755)
Total net position $ 70,752,169 $ 34,733,188 $ 105,485,357 Primary Government
See accompanying Notes to Basic Financial Statements
28 City of Pacifica
Statement of Activities
For the year ended June 30, 2024
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities:

General government $ 9,174,410 $ 434,405 $ 217,512 $ - $ (8,522,493) $ - $ (8,522,493) Public safety 22,844,505 868,883 541,618 - (21,434,004) - (21,434,004) Community development 3,952,730 2,225,969 -- (1,726,761) - (1,726,761) Public works 12,285,498 1,322,542 463,314 2,524,729 (7,974,913) - (7,974,913) Parks, beaches and recreation 6,479,952 2,652,638 3,152,068 - (675,246) - (675,246) Interest on long-term debt 785,665 - - - (785,665) - (785,665) Total governmental activities 55,522,760 7,504,437 4,374,512 2,524,729 (41,119,082) (41,119,082) - Business-type Activities:

Sewer 18,317,572 18,575,262 - - - 257,690 257,690
Beach parking 613,116 467,587 - - - (145,529) (145,529) Total business-type activities 18,930,688 19,042,849 - - - 112,161 112,161 Total primary government $ 26,547,286 74,453,448 $ 4,374,512 $ 2,524,729 $ (41,119,082) 112,161 (41,006,921) General Revenues:

Taxes:

Property taxes 19,777,305 - 19,777,305
Sales and use taxes 5,766,170 - 5,766,170
Franchise taxes 1,732,040 - 1,732,040
Other taxes 9,125,779 - 9,125,779
Total taxes - 36,401,294 36,401,294
Motor vehicle in lieu, unrestricted 3,823,616 - 3,823,616 Investment earnings 1,481,727 1,815,111 3,296,838
Gain on sale of capital assets 212,187 - 212,187
Miscellaneous 630,969 - 630,969
Transfers 978,700 (978,700) -
Total general revenues and transfers 836,411 43,528,493 44,364,904 Change in net position 948,572 2,409,411 3,357,983
Net position - beginning of year 33,226,694 71,627,558 104,854,252 Restatements 557,922 (3,284,800) (2,726,878)
Net position - beginning of year, as restated 33,784,616 68,342,758 102,127,374 Net position - end of year $ 34,733,188 70,752,169 $ 105,485,357 $ and Changes in Net Position
Net (Expense) Revenue
Program Revenues
See accompanying Notes to Basic Financial Statements.
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30 FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
31 City of Pacifica
Balance Sheet
Governmental Funds
June 30, 2024
Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments 19,624,366 $ - $ $ 12,741,412 $ 32,365,778 Cash and investments with fiscal agents - 4,132,923 264,994 4,397,917 Restricted cash and investments 375,291 - 2,702,353 3,077,644 Receivables:

Accounts receivables 4,435,405 209,379 2,250,617 6,895,401 Interest receivables 77,597 - - 77,597
Due from other funds 24,185 - 5,187,035 5,211,220
Prepaid items 8,287 - 113,908 122,195
Total assets $ 24,545,131 $ 4,342,302 $ 23,260,319 $ 52,147,752

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 644,000 3,519,636 $ $ 893,293 $ 5,056,929 Due to other funds - 3,256,429 998,068 4,254,497
Refundable deposits 669,992 - - 669,992
Total liabilities 4,189,628 3,900,429 1,891,361 9,981,418 Deferred Inflows of Resources
Unavailable revenue 1,615,053 - - 1,615,053
Total deferred inflows of resources 1,615,053 - - 1,615,053 Fund Balances:

Nonspendable 8,287 - - 8,287
Restricted 375,291 4,132,923 18,168,466 22,676,680
Assigned 5,728,467 - 4,140,951 9,869,418
Unassigned 12,628,405 (3,691,050) (940,459) 7,996,896
Total fund balances 18,740,450 441,873 21,368,958 40,551,281 Total liabilities, deferred inflows of
resources and fund balances $ 24,545,131 $ 4,342,302 $ 23,260,319 $ 52,147,752 General Fund
General Capital
Improvement
Capital Projects
Fund
See accompanying Notes to Basic Financial Statements.
32 Total Fund Balances - Total Governmental Funds $ 40,551,281 Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

GovernmentWide Statement
of Net Position
Internal Service
Funds Total
Nondepreciable 59,267,647 (258,774) 59,008,873
Depreciable, net 44,506,563 (2,456,493) 42,050,070
Total capital assets $ 103,774,210 $ (2,715,267) 101,058,943 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government-Wide Statement of Net Position. 4,006,949 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 1,615,053 Deferred charge on refunding, net of accumulated amortization, has not been reported in the governmental funds. This was capitalized and amortizd over the life of the new or old debt whichever is shorter in the Government-Wide Statement of Net Position. 606,161
In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

GovernmentWide Statement
of Net Position
Internal Service
Funds
Deferred outflows of resources related to pension 1,006,987 1,006,987 - Deferred outflows of resources related to OPEB 25,513,053 25,513,053 - Deferred inflows of resources related to pension (2,981,641) (2,981,641) - Deferred inflows of resources related to OPEB (2,339,845) (2,339,845) - Long-term liabilities were not due and payable in the current period.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

GovernmentWide Statement
of Net Position
Internal Service
Funds Total
Compensated absences - due within one year (980,498) 78,558 (901,940) Claims payable - due within one year (34,985) 34,985 -
Interest payable (317,524) 316 (317,208)
Long-term debt - due within one year (1,734,513) 19,285 (1,715,228) Compensated absences (739,674) - (739,674)
Claims payable (139,938) 139,938 -
Long-term debt (21,935,750) 114,000 (21,821,750)
Net pension liability (69,306,354) - (69,306,354)
Net OPEB liability - (3,482,618) (3,482,618)
Total long-term liabilities $ 387,082 (98,671,854) $ (98,284,772) Net Position of Governmental Activities $ 70,752,169
City of Pacifica
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
33 City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
REVENUES:

Taxes 30,402,958 $ - $ $ - $ -
Licenses and permits 1,435,267 - 12,105 -
Fines and forfeitures 125,418 - - -
Use of money and property 956,441 - 197,191 -
Intergovernmental 7,380,288 - 287,040 -
Charges for services 2,866,464 - - -
Recreation programs 714,534 - - -
Other 2,611,902 - 75,000 -
Total revenues 46,493,272 - 571,336 -
EXPENDITURES:

Current:

General government 7,006,669 - - -
Public safety 20,114,338 - - -
Community development 3,459,001 - 52,685 -
Public works 4,737,311 - 115,855 -
Parks, beaches, and recreation 5,826,972 - - -
Capital outlay 70,693 - 7,830,504 -
Debt service:

Principal ----
Interest and fiscal charges ----
Total expenditures 41,214,984 - 7,999,044 -

REVENUES OVER (UNDER)
EXPENDITURES 5,278,288 - (7,427,708) -
OTHER FINANCING SOURCES (USES):

Transfers in 1,291,900 - 2,553,000 -
Transfers out (4,714,200) ---
Total other financing sources (uses) (3,422,300) - 2,553,000 - Net change in fund balances 1,855,988 - (4,874,708) -
FUND BALANCES:

Beginning of year 20,547,470 7,472,999 5,316,581 2,699,165 Restatement (3,663,008) (7,472,999) - (2,699,165)
Beginning of year, as restated 16,884,462 - 5,316,581 - End of year $ 18,740,450 $ - $ 441,873 $ -
General Fund Debt Service Fund
General Capital
Improvement
Capital Projects
Fund
Disaster Accounting
Special Revenue
Fund
See accompanying Notes to Basic Financial Statements.
34 Nonmajor Total
Governmental Governmental
Funds Funds
$ 38,422,009 8,019,051 $
29,755 1,477,127
- 125,418
500,940 1,654,572
411,294 8,078,622
361,832 3,228,296
- 714,534
291,398 2,978,300
56,678,878 9,614,270
339 7,007,008
113,446 20,227,784
127,693 3,639,379
3,864,124 8,717,290
93,767 5,920,739
2,008,888 9,910,085
1,633,859 1,633,859
844,171 844,171
57,900,315 8,686,287
927,983 (1,221,437)
3,966,121 7,811,021
(4,530,721) (9,244,921)
(1,433,900) (564,600)
(2,655,337) 363,383
10,833,411 46,869,626
10,172,164 (3,663,008)
21,005,575 43,206,618
$ 21,368,958 $ 40,551,281
See accompanying Notes to Basic Financial Statements.
35 City of Pacifica
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2024
Net Change in Fund Balances - Total Governmental Funds $ (2,655,337) Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 9,085,393
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (2,519,197) Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. (250,171) Repayments of long-term debt are recognized as expenditures in the governmental funds. In the governmentwide statements, repayments of long-term liabilities are reported as reductions of liabilities. Expenditures for repayment of principal portion of long-term debt were. 1,633,859 Current year employer pension contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 7,093,034
Pension expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (10,251,018) Current year employer OPEB contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 447,667
OPEB expense (income) is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. 43,784 Some expenses reported in the statement of activities do not require the use of current financial resources and therefor are ont reported as expenditures in governmental funds Change in unavailable revenue 62,406
Change in accrued interest payable 21,787
Change in deferred loss on refunding (73,972)
Change in unamortized discount/premium 114,879
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. (343,703)
Change in Net Position of Governmental Activities $ 2,409,411 Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
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37 City of Pacifica
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities -
Internal Service
Totals Funds
ASSETS
Current Assets:

Cash and investments $ 79,57 3,842,920 $ 1 $ 3,922,491 $ 2,756,163 Cash and investments with fiscal agents 25,474,467 - 25,474,467 - Receivables:

Accounts receivables 5,618 9,054 14,672 -
Interest receivables 90,630 - 90,630 -
Prepaid items 390,494 - 390,494 -
Total current assets 29,804,129 88,625 29,892,754 2,756,163 Noncurrent:

Capital assets:

Capital assets, not being depreciated 6,032,930 - 6,032,930 258,774 Capital assets, being depreciated 140,133,867 112,049 140,245,916 10,455,754 Accumulated depreciation (82,492,798) (62,799) (82,555,597) (7,999,261) Net capital assets 63,673,999 49,250 63,723,249 2,715,267 Total noncurrent assets 63,673,999 49,250 63,723,249 2,715,267 Total assets 93,478,128 137,875 93,616,003 5,471,430

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 164,824 - 164,824 -
Related to pension 1,371,792 - 1,371,792 -
Related to OPEB 221,046 - 221,046 -
Total deferred outflows of resources 1,757,662 - 1,757,662 -

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,541,474 23,148 1,564,622 120,676 Interest payable 596,356 - 596,356 316
Due to other funds - - - 956,723
Compensated absences - current 148,199 41,016 189,215 78,558 Claims payable - current - - - 34,985
Long-term debt - current portion 3,195,097 - 3,195,097 19,285 Total current liabilities 5,481,126 64,164 5,545,290 1,210,543 Noncurrent liabilities:

Compensated absences 102,986 28,503 131,489 -
Claims payable - - - 139,938
Net pension liability 4,102,132 - 4,102,132 -
Net OPEB liability 764,477 - 764,477 -
Long-term debt 49,378,797 - 49,378,797 114,000
Total noncurrent liabilities 54,348,392 28,503 54,376,895 253,938 Total liabilities 59,829,518 92,667 59,922,185 1,464,481

DEFERRED INFLOWS OF RESOURCES
Related to pension 63,785 - 63,785 -
Related to OPEB 654,507 - 654,507 -
Total deferred inflows of resources 718,292 - 718,292 -

NET POSITION
Net investment in capital assets 37,537,563 49,250 37,586,813 2,715,267 Unrestricted (2,849,583) (4,042) (2,853,625) 1,291,682
Total net position $ 34,687,980 $ 45,208 $ 34,733,188 $ 4,006,949 Business-Type Activities
Sewer Utility
Beach Parking
(Non-Major)
See accompanying Notes to Basic Financial Statements.
38 City of Pacifica
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2024
Governmental
Activities -
Internal Service
Totals Funds
OPERATING REVENUES:

Charges for services $ 467,587 18,453,938 $ $ 18,921,525 $ 1,457,510 Other operating income 121,324 - 121,324 1,171,592
Total operating revenues 18,575,262 467,587 19,042,849 2,629,102 OPERATING EXPENSES:

Personnel services 5,301,407 456,645 5,758,052 670,800
Administration 1,349,977 47,532 1,397,509 32,860
Supplies and materials 1,550,400 70,488 1,620,888 777,885 Insurance expense - - - 2,970,610
Outside contractors 175,581 - 175,581 18,610
Maintenance 584,623 24,100 608,723 132,730
Insurance claims - - - 174,845
Depreciation 4,537,454 14,351 4,551,805 815,064
Utilities 2,790,949 - 2,790,949 -
Total operating expenses 16,290,391 613,116 16,903,507 5,593,404 Operating income (loss) 2,284,871 (145,529) 2,139,342 (2,964,302) NONOPERATING REVENUES (EXPENSES):

Investment earnings 1,810,673 4,438 1,815,111 -
Gain on sale of capital assets - - - 212,187
Interest and fiscal charges (2,005,178) - (2,005,178) (4,188) Amortization (22,003) - (22,003) -
Total nonoperating revenues (expenses) (216,508) 4,438 (212,070) 207,999 Income before contributions and transfers 2,068,363 (141,091) 1,927,272 (2,756,303) CONTRIBUTIONS AND TRANSFERS:

Transfers in - - - 2,412,600
Transfers out (978,700) - (978,700) -
Total contributions and transfers (978,700) - (978,700) 2,412,600 Change in net position 1,089,663 (141,091) 948,572 (343,703) NET POSITION:

Beginning of year 33,040,395 186,299 33,226,694 4,405,015 Restatements 557,922 - 557,922 (54,363)
Beginning of year, as restated 33,598,317 186,299 33,784,616 4,350,652 End of year $ 34,687,980 $ 45,208 $ 34,733,188 $ 4,006,949 Business-Type Activities
Sewer Utility
Beach Parking (NonMajor)
See accompanying Notes to Basic Financial Statements.
39 City of Pacifica
Combining Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
Governmental
Activities -
Internal Service
Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $ 18,661,811 $ 465,832 $ 19,127,643 $ 2,629,102 Payments to suppliers (6,623,469) (134,876) (6,758,345) (1,040,422) Payments for claims --- (3,273,533)
Payments to and on behalf of employees (5,297,759) (461,952) (5,759,711) (615,954) Net cash provided by (used in) operating activities 6,740,583 (130,996) 6,609,587 (2,300,807) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund payments (681,361) - (681,361) -
Interfund receipts - - - 3,369,323
Net cash provided by (used in)
noncapital financing activities (681,361) - (681,361) 3,369,323 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Purchase of capital assets (3,765,363) - (3,765,363) (934,588) Proceeds from sale of capital assets --- (602,877)
Principal paid on long term debt (3,046,223) - (3,046,223) (18,050) Interest paid (2,275,098) - (2,275,098) (4,224)
Net cash provided by (used in)
capital and related financing activities (9,086,684) - (9,086,684) (1,559,739) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 1,720,053 4,438 1,724,491 -
Net cash provided by (used in) investing activities 1,720,053 4,438 1,724,491 - Net cash flows (1,307,409) (126,558) (1,433,967) (491,223) CASH AND INVESTMENTS - Beginning of year 30,624,796 206,129 30,830,925 3,247,386 CASH AND INVESTMENTS - End of year $ 29,317,387 $ 79,571 $ 29,396,958 $ 2,756,163

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

Operating income (loss) $ 2,284,871 $ (145,529) $ 2,139,342 $ (2,964,302) Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 4,537,454 14,351 4,551,805 815,064
(Increase) decrease in accounts receivable 86,549 (1,755) 84,794 - (Increase) decrease in prepaid items (5,714) - (5,714) - Increase (decrease) in accounts payable (166,225) 7,244 (158,981) (78,337) Increase (decrease) in claims payable --- (128,078)
Increase (decrease) in net pension liability 150,130 - 150,130 - Increase (decrease) in deferred pension related items 83,651 - 83,651 - Increase (decrease) in OPEB liability (30,529) - (30,529) - Increase (decrease) in deferred OPEB related items (77,351) - (77,351) 54,846 Increase (decrease) in compensated absences (122,253) (5,307) (127,560) - Net cash provided by (used in) operating activities $ (130,996) 6,740,583 $ 6,609,587 $ (2,300,807) $ NONCASH TRANSACTIONS:

Amortization of loss on refunding of bonds $ (22,003) $ - $ - $ - Amortization of bond premium 275,521 -- -
Business-Type Activities
Sewer Utility
Beach Parking
(Non-Major)
See accompanying Notes to Basic Financial Statements.
40 This page intentionally left blank
41 City of Pacifica
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2024
Private Purpose
Trust Fund
Successor
Agency of the
Former RDA
ASSETS
Cash and investments 30,683 $
Cash and investments with fiscal agents 242,887
Total assets 273,570

LIABILITIES
Interest payable 22,836
Long-term liabilities:

Long-term debt - due within one year 80,000
Long-term debt - due in more than one year 715,000
Total liabilities 817,836

NET POSITION
Restricted for:

Held in trust for private purposes (544,266)
Total Net Position $ (544,266)
See accompanying Notes to Basic Financial Statements.
42 City of Pacifica
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
For the year ended June 30, 2024
Private Purpose
Trust Fund
Successor
Agency of the
Former RDA
ADDITIONS:

Investment revenue $ 5,932
Taxes and assessments 176,093
Total additions 182,025
DEDUCTIONS:

Interest expense 48,136
Community development expense 15,926
Total deductions 64,062
Change in net position 117,963
NET POSITION:

Beginning of year (4,325,237)
Restatements 3,663,008
Beginning of year, as restated (662,229)
End of year (544,266) $
See accompanying Notes to Basic Financial Statements.
43 This page intentionally left blank
44 NOTES TO BASIC

FINANCIAL STATEMENTS
45 This page intentionally left blank.
46 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Pacifica (City) have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Boards (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant accounting principles are described below.

A. Financial Reporting Entity
The City of Pacifica was incorporated November 22, 1957 under the general laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City operates under a Council-Manager form of government. There are five Council Members who serve overlapping terms of four years, and the Council, in turn, elects one of the Council Members to serve as Mayor for one year. This legislative body selects a City Manager to administer the affairs of the City. The City provides the following services: public safety (police, fire, and civil defense), highways and streets, sanitation, health and social services, culture- recreation, public improvements, planning and zoning, and general administrative services.

As required by accounting principles generally accepted in the United States of America, the accompanying financial statements include the financial activities of the City.

The City of Pacifica Financing Authority is a separate government entity whose purpose is to assist with the financing certain public capital facilities for the City through the issuance of bonds or other forms of debt. The Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Authority. The Authority is a blended component unit of the City and does not issue separate financial statements.

There are no other entities which meet criteria under generally accepted accounting principles for blended or discrete disclosure within these financial statements.

B. Basis of Presentation
The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the acknowledged standard-setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

The City’s government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental activities and business-type activities for the City, accompanied by a total column. These financial statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities are financed generally through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed generally through user fees.
47 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Government-wide and Fund Financial Statements
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and therefore are clearly identifiable to a particular function.

Program revenues include three categories: (1) charges for services, (2) operating grants and contributions and (3) capital grants and contributions. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Interfund services provided and used are not eliminated in the process of consolidation on the Statement of Activities.

Certain eliminations have been made as prescribed by generally accepted accounting principles in regard to interfund activities, payables and receivables.

D. Financial Statements
The fund financial statements provide information about the City’s funds. Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major individual funds, each of which is displayed in a separate column. All remaining funds are aggregated and reported as nonmajor funds. All fiduciary funds are considered nonmajor.

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 non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balance as presented in these statements to the net position presented in the government-wide financial statements.

Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Net Position, and a Statement of Cash Flows for all proprietary funds. The internal service funds are also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government-wide financial statements.

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

Fiduciary Fund Financial Statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. Fiduciary funds represent private-purpose trust funds, which the City serves as a trustee for the Successor Agency. Fiduciary funds are accounted for on an economic resources measurement focus and full accrual basis of accounting. The City has one fiduciary fund, the RDA Successor Agency private-purpose trust fund.
48 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Major Funds
Generally accepted accounting principles define major funds and require that the City’s major governmental funds be identified and presented separately in the Fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fundtype. Major funds are defined as funds which have either assets and deferred outflows, liabilities and deferred inflows, revenues or expenditures/expenses equal to or greater than ten percent of their fund-type total and five percent of the grand total of all fund types, excluding fiduciary. The general fund is always a major fund. The major funds of the City are:
• General Fund – The General Fund is used to account for the resources to carry out basic governmental activities of the City such as general government, public safety, public works, community development, and parks, beaches, and recreation, which are not required to be accounted for in another fund.
• General Capital Improvement Capital Projects Fund – This fund is used to account for revenues derived from fees and apportionments from General Fund to be used for the acquisition, construction, and improvement of major capital facilities of the City.

The City reports the following major enterprise fund:
• The Sewer Utility Enterprise Fund – This fund accounts for the operation and maintenance of the City’s wastewater collection system including operating costs of the wastewater collection system and water recycling plant.

Additionally, the City reports the following fund types:
• The Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units on a cost reimbursement basis. The City has three internal service funds, the Motor Pool Fund, the Self Insurance Fund and the Fire Equipment Replacement Fund. The Motor Pool Fund accounts for the City’s central garage, the Self Insurance Fund accounts for the employee dental, workers’ compensation, general liability, property, and automobile liability insurance, and the Fire Equipment Replacement Fund accounts for the funding and replacement of fire equipment for the Fire Department.
• The RDA Successor Agency Private-Purpose Trust Fund accounts for the former Redevelopment Agency activities.
49 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Basis of Accounting
The government-wide, proprietary funds, and fiduciary funds financial statements are required by generally accepted accounting principles to be reported using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and deferred outflows, liabilities and deferred inflows, including capital 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 regardless of when the related cash flows take place.

The governmental fund financial statements are reported using the current financial resources measurement focus, and the modified accrual basis of accounting. Accordingly, only current assets and liabilities (except for long-term advances from the City) are included in the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present 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 City considers all revenues reported in the governmental funds to be available if the revenue is collected within ninety days after fiscal year end. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales taxes, intergovernmental revenues, other taxes and investment earnings. Expenditures are recorded in the accounting period in which the related fund liability is incurred, except for principal and interest on long-term debt, including lease liabilities, subscription liabilities, and compensated absences, which are recognized as expenditures to the extent that they have matured. Capital asset acquisitions, including entering into contracts giving the City the right to use leased assets and right-to-use subscription assets, are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under lease financings and subscription liabilities are reported as other financing sources.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving value in exchange, include taxes, grants, entitlements and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of costreimbursement grants, categorical block grants and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. 50 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Cash and Cash Equivalents
The City considered cash and cash equivalents (investments with maturities of three months or less at the time of purchase) as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling the cash of all funds, including the City’s Enterprise and Internal Service Funds. For purposes of the statement of cash flows, the City’s proprietary funds consider their demand deposits and all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

H. Investments
Investments are reported at fair value, except for investments that are not transferable and have terms that are not affected by change in market rates are reported at cost.

Changes in fair value that occur during a fiscal year are recognized as revenues from use of money reported for that fiscal year. Revenues from use of money include interest earnings, change in fair value, gains or losses realized upon the liquidation, maturity, or sale of investment and rental income.

Changes in the fair value of investments during this fiscal year were calculated and booked.

I. Receivables and Payables
All accounts, grants, tax, and note receivables are shown net of an allowance for uncollectible accounts if applicable, and estimated refunds due.

J. Inventories and Prepaid Items
General fund inventories are recorded as expenditures when consumed, rather than when purchased.

These inventories are stated at cost, using the first-in, first-out (FIFO) method. Inventories in the proprietary funds are stated at the lower of cost or market, and consist of expendable materials and supplies.

Certain payments to vendors reflect costs applicable to future accounting periods, and are recorded as prepaid items in both the government-wide and fund financial statements.

Inventories and prepaid items, as reported in the fund financial statements, are offset by nonspendable fund balance for noncurrent assets in governmental funds, to indicate that they do not constitute resources available for appropriation.
51 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Encumbrances
The City uses encumbrances to control expenditure commitments for the year. Encumbrances represent commitments related to executor contracts not yet performed and purchase orders not yet filled.

Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year end are not accounted for as expenditures and liabilities, but as restricted, assigned or unassigned fund balance.

L. Compensated Absences
City employees accrue vacation, sick, holiday, and compensatory time off benefits. An employee may accumulate vacation time equal to an amount as stipulated in their contracts. No cash compensation is payable for accrued vacation until the employee terminates employment. Sick leave is compensated in cash only upon an employee's retirement. Maximum limit per employee is $3,000 or one quarter of employee's sick leave credit, whichever is lower. Two employee groups have elected to participate in a retirement health savings program and have directed vacation and limited sick leave cash out to separation of this program. It is the City’s policy to allow employees to accumulate compensatory time within set limits instead of drawing overtime. This accumulation may subsequently be exchanged into cash or time taken.

All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only when they have matured (such as vacation time, estimated to be paid upon retirement by the end of the fiscal year with expendable available financial resources). Each fiscal year, an adjustment to the liability is made based on pay rate changes and adjustments for the current portion. The General Fund is primarily responsible for the repayment of the governmental portion of compensated absences.

Changes in compensated absences for the year ended June 30, 2024, were as follows:
52 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Property Tax Revenues
California Constitution Article XIII A limits the combined property tax rate to one percent of a property’s assessed valuation. Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property’s fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership occurs. The County of San Mateo collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to adjustments for voter-approved debt. The City receives property taxes pursuant to an arrangement with the County known as the “Teeter Plan,” whereby the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues (including tax increment revenues) to the extent of each year’s tax allocation received or to be received within 60 days after the end of each fiscal year.

The County assesses properties, bills for, collects, and distributes property taxes per the following schedule:

The term “Unsecured” refers to taxes on personal property other than real estate, land, and buildings.

These taxes are secured by liens on property being taxed.

N. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.

O. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
53 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. Fair Value Measurements, Continued
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

P. Leases
A lease is defined as a contract that conveys control of the right to use another entity's nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City recognizes lease receivables or liabilities with an initial, individual value of $150,000 or more, based on the future lease payments remaining at the start of the lease.

The City has no leases subject to being recorded as of June 30, 2024.

Q. Subscription-Based Information Technology Arrangements A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. The City recognizes SBITA assets/liabilities with an initial, individual value of $150,000 or more.

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 contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets.

Key estimates and judgments related to SBITAs 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 as follows:
54 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Subscription-Based Information Technology Arrangements, Continued • The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription.

The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

Subscription assets are reported with other capital assets and subscription liabilities are reported on the statement of net position. The City did not have any SBITAs that met the criteria for capitalization as of June 30, 2024.

R. New Funds
During the year ended June 30, 2024, the City established the following funds:

Housing Action Fund – This fund was established to account for unrestricted ERAF revenues allocated towards housing programs by Council policy.

Hotel Business Improvement Fund – This fund was established to account for assessments levied annually on all hotels, motels, inns at a flat rate of $1.00 per room and per day of occupancy and used to promote lodging within the Hotel Business Improvement District and support operation of a visitor center. The Pacifica Hotel Business Improvement District was established by the Pacifica City Council Ordinance No. 714-C.S. pursuant to California Streets and Highways Code sections 36500 et. seq.

2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary information
The City operates under the general law of the State of California, and annually adopts a budget to be effective July 1 for the ensuing fiscal year. The City Manager submits a Preliminary Budget to the City Council on or about May 15 each year. This Preliminary Budget is the fiscal plan for the ensuing twelve months starting July 1, and includes proposals for expenditures for operations and capital improvement, and the resources to meet them. City Council conducts public hearings in the Council Chambers before adopting the budget. The Council approves total appropriations at the department level in the General Fund, and at the fund level in other funds. The Budget is adopted by City resolution prior to June 30.

The appropriated budget is prepared by fund, function, and department. The City Manager is authorized to transfer budget appropriations within departments in conformance with the adopted policies set by the City Council. All other transfers must be approved by the City Council. Any revisions that alter the total expenditures of any department must be approved by the City Council. 55 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY, Continued A. Budgetary information, Continued
Expenditures are budgeted at, and may not legally exceed, the department level for the General Fund and the fund level for Special Revenue, Debt Service, Capital Projects and Internal Service Funds.

Budgeted amounts shown are as originally adopted, or as amended by the City Council during the fiscal year. During the fiscal year, several supplementary appropriations were necessary.

Budgets for General, Special Revenue, Debt Service, Capital Projects, and Internal Service Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America (US GAAP). Except for Capital Project Funds, appropriations lapse at fiscal year-end and are re-budgeted for the coming year. The following capital projects funds are not budgeted annually:

Aircraft Noise Project Fund and Pacific Library Fund. The Housing In- Lieu, Parking In-lieu and Housing Successor Special Revenue Funds are only budgeted when the need for expenditures arise.

The Measure W, Street Improvement and Tree Preservation Special Revenue Funds were newly established during fiscal year 2023 and not included in the annual budget.

Encumbrances represent commitments related to unperformed contracts for goods or services.

Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the governmental funds. Encumbrances outstanding at fiscal year-end are recorded as restricted, committed, or assigned fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent fiscal year.

B. Expenditures in Excess of Appropriations
The following funds incurred departmental or fund expenditures in excess of appropriations:
56 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY, Continued B. Expenditures in Excess of Appropriations, Continued
Except for the General Capital Improvement and Gas Tax Funds, sufficient resources were available in each fund to finance these excess amounts.

C. Deficit Fund Balance
As of June 30, 2024, the following funds had deficit fund balances:
x Gas Tax Special Revenue Fund $ 390,167
x Tree Preservation Special Revenue Fund $ 51,167
x Manor Drive Improvement Capital Projects Fund $ 499,125 The deficit in these governmental funds is due to the City incurring expenditures in advance of receiving revenues. The deficit is going to be repaid once reimbursements are received from the funding source, and if there is an outstanding deficit after the repayments, if needed, the General Fund would cover the deficit.

3. CASH AND INVESTMENTS
Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:
57 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
A. Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
58 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
B. Investments Authorized by Debt Agreements
Investment of debt proceeds held by trustees is governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

C. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to change in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flows and liquidity needed for operations. 59 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
C. Interest Rate Risk, Continued
Information about the sensitivity of the fair values of the City’s investments and those held by trustees to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Money market mutual funds are available for withdrawal on demand at June 30, 2024, and have an average maturity of 38 days.

The City does not hold any specific investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

D. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

Investment in the California Local Agency Investment Fund and money market mutual funds are classified as exempt in the fair value hierarchy, as it is valued at amortized cost, which is exempt from being classified under the fair value hierarchy.

Investment Type
12 Months
or less Total
California Local Agency Investment Fund 16,483,677 $ 16,483,677 $ Non-Negotiable Certificate of Deposit 2,702,353 2,702,353 Held by Trustees:

Money Market Funds 25,982,349 25,982,349
Negotiable Certificate of Deposit 4,132,922 4,132,922
Pension Trust 375,291 375,291
Total Investments 49,676,592 49,676,592
Cash in Banks 22,587,993
Petty Cash 3,445
Total Cash in Banks and On Hand 22,591,438
Total Cash and Investments 72,268,030 $
Remaining Maturity (in Months)
60 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
E. 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 (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

F. Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer. The City has no investments in any one issuer (other than money market funds and an external investment pool) that represent 5% or more of total City investments.

G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker- dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another 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 deposits or investments, other than the following provision for deposits. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
61 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
G. Custodial Credit Risk, Continued
As of June 30, 2024, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts.

H. Investment in State Investment Pool
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, using a fair value factor of 0.996316042 as of June 30, 2024. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to a one‐ time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other assetbacked securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. On June 30, 2024, LAIF’s investments in structured notes and asset-backed securities were 3.00% of the total LAIF balance as compared to 2.78% in the prior year.

The City established an irrevocable Section 115 Pension Trust administered by Public Agency Retirement Services (PARS) in the fiscal year 2021. The Trust is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. Investments of funds held in Trust are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with PARS, rather than the general provisions of the California Government Code or the City’s investment policy. This trust will assist the City in mitigating the CalPERS contribution rate volatility. The City elected a discretionary investment approach, which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’s risk tolerance, under the Balanced Index PLUS investment option. This pension trust is a secondary trust to the City’s CalPERS Pension Plan; therefore, the assets are reported in the City’s Pension Stabilization Internal Service Fund. The assets in the Trust will eventually be used to fund pension plan obligations.

As of June 30, 2024, the trust had a balance of $375,291 PARS’ policy for the allocation of invested assets is established as:
62 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

4. CAPITAL ASSETS
All capital assets are valued at historical cost or estimated cost if actual historical cost is not available.

Donated capital assets and those received in a service concession arrangement are recorded at acquisition value at the date of donation. Acquisition value is the price that would be paid to acquire an asset with equivalent service potential on the date of the donation. Generally accepted accounting principles requires that all capital assets with limited useful lives be depreciated over their estimated useful lives. The purpose of the depreciation is to spread the cost of the capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro-rata share of the cost of the capital assets. Depreciation is provided using the straight–line method over its expected useful life. Capital assets with a value of $5,000 or more are capitalized.

The City has assigned the following useful lives to capital assets: Buildings and improvements (25-30 years); Police Vehicles (4 years); Other Vehicles (5-25 years); Machinery and Equipment (5-15 years); Collection System (20 years); and Infrastructure (15-30 years).

The following is a summary of capital assets for governmental activities as of June 30, 2024:
63 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

4. CAPITAL ASSETS, Continued
Depreciation expense for governmental activities was charged to functions as follows:

The following is a summary of capital assets for business-type activities as of June 30, 2024:

Depreciation expense for business-type activities was charged to enterprise funds as follows:
64 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

5. LONG TERM DEBT
The City generally incurs debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt. The City’s debt issues and transactions related to both governmental and business-type activities are summarized below and discussed in detail subsequently.

Governmental Activities:

Business-type Activities:

Balance Balance Due within
July 1, 2023 Retirements June 30, 2024 One Year
Certificates of Participation:
2016 COP $ 12,770,000 $ (760,000) $ 12,010,000 $ 760,000 Premium 1,608,309 (114,879) 1,493,430 -
Sub-total COP 14,378,309 (874,879) 13,503,430 760,000
Financed Purchase (Direct borrowing):
2021 Civic Center 4,000,000 (50,000) 3,950,000 75,000
Sub-total financed purchases 4,000,000 (50,000) 3,950,000 75,000 Pension Obligation Bonds:
2019 Pension obligation refunding bond
(88.622%) 7,058,742 (841,909) 6,216,833 899,513
Total Governmental Activities $ 25,437,051 $ (1,766,788) $ 23,670,263 $ 1,734,513 Balance Balance Due within
July 1, 2023 Retirements June 30, 2024 One Year
Revenue bonds:
2014 Wastewater Revenue Refunding 5,220,000 $ $ (1,595,000) $ 3,625,000 $ 1,675,000 Net Premium 415,176 (118,623) 296,553 -
2017 Wastewater Revenue Bonds 21,475,000 (655,000) 20,820,000 690,000 Net Premium 3,137,965 (156,898) 2,981,067 -
Sub-total Revenue bonds: 30,248,141 (2,525,521) 27,722,620 2,365,000 Pension Obligation bonds:
2019 Pension obligation bond
(11.378%) 906,258 (108,091) 798,167 115,487
Notes payable (Direct Borrowing):

Loan and Installment Agreement 3,741,239 (317,437) 3,423,802 328,865 IBank Loan 21,000,000 (370,695) 20,629,305 385,745
Total notes payable 24,741,239 (688,132) 24,053,107 714,610 Total Business-Type Activities: $ 55,895,638 $ (3,321,744) $ 52,573,894 $ 3,195,097 65 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

5. LONG TERM DEBT, Continued
A. Governmental Activities Debt
2021 Civic Center Campus Improvement Project Financed Purchase (Direct Borrowing): On November 22, 2021, the City adopted a Resolution of the Board of Directors of the City of Pacifica Financing Authority approving financing in the aggregate amount of $4 million to finance a portion of the construction of the Civic Center Campus Improvement Project. Sterling National Bank was chosen from seven financial institutions who responded to the request for proposal. The loan is a 15- year loan at 1.97% and the bank committed to providing the City with an additional $1 million within a 24- month period if the City chooses to increase the borrowing amount. Payments are payable semiannually on July 1 and January 1. The financed purchase ends on July 1, 2036.

Annual debt service requirements, to maturity, for the 2021 Civic Center are as follows:
2016 Certificates of Participation: On October 5, 2016, the City of Pacifica Financing Authority issued Certificates of Participation (COP) in the amount of $14,680,000 (par value) payable annually beginning January 1, 2021 and with interest rates ranging from 3.000% to 5.000%, payable each July 1 and January 1, beginning January 1, 2017. The COP matures on January 1, 2037. The purpose of the COP is to (i) prepay and defease certain outstanding certificates of participation which were executed and delivered in 2008 for the purpose of financing and refinancing various municipal improvements of the City, and (ii) pay certain costs of executing and delivering the Certificates.

Accounting gains or losses resulting from advance refunding of long-term debt is deferred and amortized over the shorter of the life of the new debt or refunded debt. The deferred charge on refunding balance at June 30, 2024 was $357,130 for the 2016 COP.

The 2016 COP are general obligations of the City, payable solely by the City. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. No such events occurred during the fiscal year ending June 30, 2024. 66 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

5. LONG TERM DEBT, Continued
A. Governmental Activities Debt, Continued
Annual debt service requirements, to maturity, for the 2016 Certificates of Participation are as follows:
2019 Taxable Pension Obligation Refunding Bonds: During September 2019, the City of Pacifica issued $9,685,000 of Pension Obligation Refunding Bonds (POBs) bearing interest between 2.243% and

3.060% and payable semiannually on June 1 and December 1 each year, commencing June 1, 2020. The bonds mature on June 1, 2030. These bonds were issued to refund in full the 2010 taxable pension obligation bonds outstanding principal amount of $8,995,000 and pay costs of issuance of the bonds.

Approximately 88.622% of the bond proceeds were allocated to governmental activities (including

1.52% to the Motor Pool internal service fund).

Accounting gains or losses resulting from advance refunding of long-term debt is deferred and amortized over the shorter of the life of the new debt or refunded debt. The deferred charge on refunding balance at June 30, 2024 was $249,031 for the 2019 POBs.

The 2019 POBs are general obligations of the City, payable solely by the City. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. No such events occurred during the fiscal year ending June 30, 2024. 67 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

5. LONG TERM DEBT, Continued
A. Governmental Activities Debt, Continued
Annual debt service requirements, to maturity, for the 2019 Pension Obligation Refunding Bonds (governmental portion) are as follows:

B. Business Type Activities Debt
Loan and Installment Agreement (Direct Borrowing): On August 27, 2012, the City of Pacifica entered into a loan and installment agreement with the City of Pacifica Financing Authority in the amount of $6,402,594 payable annually beginning July 1, 2013 at an interest rate of 3.6%, payable each July 1 and January 1, beginning January 1, 2013. The agreement matures on July 1, 2032. The purpose of this agreement is to (i) fund an escrow to cause the mandatory tender of the outstanding 2001B Wastewater Revenue Bonds (ii) provide funds relating to the Equalization Basin Project, the Collection System Capacity Improvement Projects, and the Collection System Repair, Rehabilitation, and Replacement Projects, (iii) fund certain costs relating to the defeasance of the 2001B Wastewater Revenue Bonds, (iv) fund or provide for satisfaction of the Reserve Fund Requirement, and (vi) pay the costs incurred in connection with the execution of the Loan and Installment Sale.

Accounting gains or losses resulting from advance refunding of long-term debt is deferred and amortized over the shorter of the life of the new debt or refunded debt. The deferred charge on refunding balance at June 30, 2024 was $146,899 for the Loan and Installment Sale.

The defeased 2001B Wastewater Revenue Bonds have been paid off. Annual debt service requirements, to maturity, for the Loan and Installment Agreement are as follows:
68 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

5. LONG TERM DEBT, Continued
B. Business Type Activities Debt, Continued
2019 Taxable Pension Obligation Refunding Bonds: During September 2019, the City of Pacifica issued $9,685,000 of Pension Obligation Refunding Bonds (POBs) bearing interest between 2.243% and

3.060% and payable semiannually on June 1 and December 1 each year, commencing June 1, 2020. The bonds mature on June 1, 2030. These bonds are being issued to refund in full the 2010 taxable pension obligation bonds outstanding principal amount of $8,995,000 and pay costs of issuance of the bonds.

Approximately 11.378% of the bond proceeds were allocated to business-type activities.

The 2019 POBs are general obligations of the City, payable solely by the City. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. No such events occurred during the fiscal year ending June 30, 2024.

Annual debt service requirements, to maturity, for the 2019 Pension Obligation Refunding Bonds (business portion) are as follows:
2014 Wastewater Revenue Refunding Bonds: In November 2014, the City issued $6,470,000 in 2014 Wastewater Revenue Refunding Bonds (2014 bonds) with interest rates ranging from 5% to 5.25%. The proceeds were used to advance refund the 2004 Wastewater Revenue Refunding Bonds.

Net proceeds of $9.3 million (including a $1.4 million premium and other city funds) were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded bonds. As a result, the 2004 Wastewater Revenue Refunding Bonds are considered defeased and the liability for those bonds was removed. The reacquisition price totaled to the net carrying amount of the refunded bonds. The refunded bonds were called in November 2014.

Interest on the 2014 bonds is payable semiannually on April 1 and October 1 each year, commencing April 1, 2015. Principal payments which are due each October 1, commencing October 1, 2022, with the last payment due on October 1, 2026. The bonds are paid from and secured by the net revenues of the wastewater collection system of the City on parity with the Loan and Installment Agreement, 2017 Wastewater Revenue Bonds and the IBank Loan.
69 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

5. LONG TERM DEBT, Continued
B. Business Type Activities Debt, Continued
Accounting gains or losses resulting from advance refunding of long-term debt is deferred and amortized over the shorter of the life of the new debt or refunded debt. The deferred charge on refunding balance at June 30, 2024was $17,925 for the Refunding Bonds.

The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. No such events occurred during the fiscal year ending June 30, 2024.

Annual debt service requirements, to maturity, for the 2014 Wastewater Revenue Refunding Bonds are as follows:
2017 Wastewater Revenue Bonds: In June 2017, the City issued $22,100,000 in 2017 Wastewater Revenue Refunding Bonds (2017 bonds) at an interest rate of 5%. The proceeds were used to fund the acquisition, construction, and installation of certain improvements to the Wastewater system.

Net proceeds of $26.2 million (including a $4 million premium and other city funds) were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded bonds.

Interest on the 2017 bonds is payable semiannually on April 1 and October 1 each year, commencing October 1, 2017. Principal payments which are due each October 1, commencing October 1, 2022, with the last payment due on October 1, 2042. The bonds are paid from and secured by the net revenues of the wastewater collection system of the City on parity with the Loan and Installment Agreement, 2014 Wastewater Revenue Refunding Bonds and the IBank Loan.

The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. No such events occurred during the fiscal year ending June 30, 2024.
70 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

5. LONG TERM DEBT, Continued
B. Business Type Activities Debt, Continued
Annual debt service requirements, to maturity, for the 2017 Wastewater Revenue Refunding Bonds are as follows:

California Infrastructure and Economic Development Bank (IBank) Loan (Direct Borrowing): In May 2023, the City entered into an installment sale agreement with the IBank in the amount of $21,000,000 at an interest rate of 4.06%. The loan also bears the IBank Annual Fee year in an amount equal to three tenths of one percent (0.3%) of the outstanding principal balance. The proceeds will be used to fund the acquisition, construction, and installation of repair and replacement of the Wastewater system in the Lower Linda Mar neighborhood and of the system’s UV Disinfection facility.

Interest on the IBank Loan is payable semiannually on April 1 and October 1 each year, commencing October 1, 2023. Principal payments which are due each October 1, commencing October 1, 2023, with the last payment due on October 1, 2052. The bonds are paid from and secured by the net revenues of the wastewater collection system of the City, on parity with the Loan and Installment Agreement, 2014 Wastewater Revenue Refunding Bonds and the 2017 Wastewater Revenue Bonds.

The loan agreement contains events of default that require the principal and unpaid interest to become due and payable immediately as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments of the IBank Loan or other parity debt; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. No such events occurred during the fiscal year ending June 30, 2024.

Fiscal year ended Principal Interest Total
2025 690,000 $ 980,350 $ 1,670,350 $
2026 725,000 944,975 1,669,975
2027 760,000 907,850 1,667,850
2028 800,000 868,850 1,668,850
2029 840,000 827,850 1,667,850
2030 - 2034 4,895,000 3,456,575 8,351,575
2035 - 2039 6,055,000 2,289,375 8,344,375
2040 - 2043 6,055,000 624,625 6,679,625
Total 20,820,000 $ 10,900,450 $ 31,720,450 $
71 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

5. LONG TERM DEBT, Continued
B. Business Type Activities Debt, Continued
Annual debt service requirements to maturity, including the annual fee, for the IBank Loan are as follows:

Pledge of Sewer Utility Enterprise Fund Revenues: The City has pledged future wastewater customer revenues, net of specified operating expenses, to repay the Loan and Installment Agreement, 2014 Wastewater Revenue Refunding Bonds, 2017 Wastewater Revenue Bonds and IBank Loan through 2053. The Sewer Utility Enterprise Fund’s total principal and interest remaining to be paid on the loans and bonds is $75,405,879. The Sewer Utility Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $5,117,912 and $8,517,470, respectively.

6. OTHER POST-EMPLOYMENT BENEFITS (OPEB)
A. Plan Description
The City provides medical benefits through the CalPERS medical program under the City’ agent multiple-employer defined benefit health care plan. Employees in the following bargaining groups who retire from the City and receive a CalPERS pension are eligible to receive City contributions towards the costs of their OPEB coverage:
x Department Directors
x Battalion Chiefs
x Firefighters
x Management Unit
x Police Officers
x Police Supervisors
x Police Management
x Wastewater Treatment Plant
x Miscellaneous Employees
72 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

6. OTHER POST-EMPLOYMENT BENEFITS (OPEB)
A. Plan Description, Continued
In general, employees in the above groups may choose to receive their medical benefits from Union Trust Plans (except Public Safety – Firefighters and Police) or enroll in any of the CalPERS medical plans. For the retirees who do not participate in the CalPERS medical programs, the City does not make a contribution toward the cost of postemployment healthcare benefits.

B. Funding Policy
Under its arrangement with the CalPERS medical program, the City contributes the minimum amount provided under Government Code Section 22825 of the Public Employees Medical and Hospital Care Act (PEHMCA). The PEHMCA minimum for calendar year 2024 was $157 per month. Retirees must contribute any premium amounts in excess of the City contribution.

Retired Department Directors, retired Management Unit employees, unrepresented managers, and confidential employees receive an additional $100 monthly benefit.

Prior to July 1, 2021, the City’s policy was to contribute an amount sufficient to pay the current year’s minimum employer contribution only.

On September 2, 2020, the City adopted the Public Agencies Post-Employment Benefits Trust (PARS) to prefund other post-employment benefits (OPEB), and the City began making contributions to the trust during fiscal year 2022. The Trust is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. Investments of funds held in Trust are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with PARS, rather than the general provisions of the California Government Code or the City’s investment policy.

The City elected a discretionary investment approach, which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’s risk tolerance, under the Capital Appreciation HighMark PLUS investment option. The City’s intent is to pay for retiree healthcare expenses on a pay- as-you-go basis from the City’s general asset and deposit the difference between the Actuarially Determined Contribution and the retiree healthcare expenses to the Trust. 73 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

6. OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued
C. Net OPEB Liability
Actuarial Methods and Assumptions: The City’s total OPEB liability was measured as of June 30, 2023 and was determined by an actuarial valuation as of June 30, 2022 to determine the total OPEB liability as of June 30, 2024, based on the following actuarial methods and assumptions:

Discount Rate: The expected long-term real rate of return of the OPEB Trust is 6.50% as of June 30, 2023 as provided by the City’s investment advisor. This rate of return was determined using a building-block method that projects economic and corporate profit growth and takes into consideration the fundamental factors driving long-term real economic growth, expectations for inflation, productivity and labor force growth. The City’s expected future real rates of return by asset class is as shown below.

Changes in Actuarial Assumptions – There were no changes of assumptions for the Plan from the measurement date June 30, 2022 to the measurement date June 30, 2023. 74 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

6. OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued
D. Changes in Net OPEB Liability
The changes in the net OPEB Liability follows:

The General Fund is typically used to liquidate the liabilities for OPEB.

E. Sensitivity of the Net OPEB Liability
The following presents 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 1-percentage-point lower or 1- percentagepoint higher than the current discount rate:

The following presents 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 healthcare cost trend rate that is 1-percentage- point lower or 1- percentage-point higher than the current healthcare cost trend rate:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance as of June 30, 2023:
(Measurement date 6/30/22) $ 4,585,660 $ 168,961 $ 4,416,699 Changes Recognized for the Measurement Period:

Service cost 178,873 178,873
Interest 301,717 301,717
Benefit changes - -
Differences between expected and actual experience (10,282) (10,282) Changes of assumptions - -
Contributions from the employer 612,991 (612,991)
Benefit payments (245,491) (245,491) -
Net investment income 27,932 (27,932)
Administrative expenses (1,011) 1,011
Net changes 224,817 394,421 (169,604)
Balance as of June 30, 2024:
(Measurement date 6/30/23) $ 4,810,477 $ 563,382 $ 4,247,095 Increase (Decrease)
75 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

6. OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued
F. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized an OPEB expense (credit) of ($151,664). As of the fiscal year ended June 30, 2024, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

The contributions made after the measurement date of the net OPEB liability but before the end of the City’s reporting period will be recognized as a reduction of the net OPEB liability in the subsequent fiscal year rather than in the current fiscal year. Therefore, $447,667 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2025. Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Year
Ended June 30
Annual
Amortization
2025 ($526,211)
2026 (453,172)
2027 (489,304)
2028 (680,019)
2029 (705,248)
Thereafter (1,828)
Total ($2,855,782)
76 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS
A. General Information about the Pension Plans
The City has pension plans with the California Public Employees Retirement System (CalPERS) and Public Agency Retirement Services (PARS). Information about the pension plans follows.

California Public Employees Retirement System (CalPERS) Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s defined benefit pension plans as follows:
x Miscellaneous (agent multiple-employer plan)
x Safety Police (cost-sharing multiple-employer plan)
x PEPRA Safety Police (cost-sharing multiple-employer plan) x Safety Fire (cost-sharing multiple-employer plan)
x PEPRA Safety Fire (cost-sharing multiple-employer plan) These plans are administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers.

Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

At June 30, 2024, the City reported the following amounts related to the pension plans:

B. Miscellaneous Plan
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. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

Miscellaneous Plan
Agent-Multiple Safety Plan
Employer Cost-Sharing PARS REP Total
Net pension liabilities 24,130,183 $ 46,998,326 $ 2,279,977 $ 73,408,486 $ Deferred outflows of resources 8,069,362 18,789,032 26,451 26,884,845 Deferred inflows of resources 375,204 2,028,426 - 2,403,630 Pension expense 4,318,662 7,087,841 182,688 11,589,191
Employer Contributions
(measurement period) 3,179,278 4,545,479 161,855 7,886,612 77 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
B. Miscellaneous Plan, Continued
The Plan’s provisions and benefits in effect at June 30, 2024, are summarized as follows:

The following employees were covered by the benefit terms for the Plan as of the most recent actuarial valuation date of June 30, 2022:

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers to be determined on an annual basis by the actuary and be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is 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. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

Net Pension Liability – The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 and methods used to determine the net pension liability is shown below. 78 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
B. Miscellaneous Plan, Continued
Changes in the Net Pension Liability – The changes in the Net Pension Liability for the Miscellaneous Plan are as follows:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the Miscellaneous Plan, calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:
79 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
B. Miscellaneous Plan, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions – For the year ended June 30, 2024, the City recognized pension expense of $4,318,662. At June 30, 2024, the City reported deferred outflows of resources related to pensions for the Plan from the following sources:

The contributions made after the measurement date of the net pension liability but before the end of the City’s reporting period will be recognized as a reduction of the net pension liability in the subsequent fiscal year rather than in the current fiscal year. Therefore, $2,936,528 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized as pension expense as follows:

Contributions, Actuarial assumptions and information regarding the discount rate are discussed in Note 7E below.
80 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
C. Safety Plan
Generally accepted accounting principles indicate that the long-term expected rate of return should be determined net of pension plan investment expense, but without reduction for pension plan administrative expense. The discount rate of 6.90% used for the June 30, 2023 measurement date is without reduction of pension plan administrative expense.

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. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Safety Plan’s provisions and benefits in effect at June 30, 2024, are summarized as follows:

Contributions, actuarial assumptions and information regarding the discount rate are discussed in Note 7E below.
81 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
C. Safety Plan, Continued
As of June 30, 2024, the City reported net pension liabilities for its proportionate shares of the net pension liability of the Safety Plan as $46,998,326.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the Safety Plan, calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions – For purposes of measuring the net pension liability and deferred outflows/inflows or resources related to pensions, and pension expense, information about the fiduciary net position of the Safety Plan and additions to/deductions from the Safety Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

The City’s net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Safety Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. 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 plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Safety Plan as of June 30, 2023 and 2022 was as follows:
82 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
C. Safety Plan, Continued
For the year ended June 30, 2024, the City recognized pension expense of $7,087,841. At June 30, 2024, the City reported deferred outflows of resources related to pensions for the Safety Plan from the following sources:

The contributions made after the measurement date of the net pension liability but before the end of the City’s reporting period will be recognized as a reduction of the net pension liability in the subsequent fiscal year rather than in the current fiscal year. Therefore, $4,655,716 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized as pension expense as follows:

D. PARS Plan
Plan Description – The City’s Agent Multiple-Employer PARS Retirement Enhancement Plan (REP) was implemented July 1, 2003 and closed to new participants hired after January 1, 2012. Eligibility to participate in REP is for the following positions: City Attorney, Administrative Services Director, nonsafety Department Director or non-safety management employee of the City on or after July 1, 2003.

Participants receiving the benefits are non-safety Management Group Employees. This plan is separate from CalPERS and is established as a 401(a) Defined Benefit Plan. The REP is administered by PARS. 83 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
D. PARS Plan, Continued
The Retirement Enhancement Plan (REP) provides a benefit equal to 0.5% of final average compensation for City management service earned after plan inception (July 1, 2003). In addition, any City employee in a covered management position as of the date of plan inception will receive up to an additional 10 years of service for any City service (management or non-management) prior to July 1, 2003.

Eligibility for an immediate benefit is defined as reaching age 55, completing five years of full- time City management service, and retiring concurrently from both the City and CalPERS after leaving City employment.

Employees Covered – At June 30, 2024, the following employees covered by the benefit terms of the plan.

Changes in the Net Pension Liability – The net pension liability of the REP is measured as of June 30, 2024, using an annual actuarial valuation as of June 30:
84 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
D. PARS Plan, Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the PARS Plan, calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions – For the year ended June 30, 2024, the City recognized pension expense of $182,688. At June 30, 2024, the City reported deferred outflows of resources related to pensions for the Plan from the following sources:

The REP Measurement Date is the same as the fiscal year end date, therefore, the fiscal year 2024 contribution of $161,855 was recognized as part of the pension expense during the current year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized as pension expense as follows:

Contributions, Actuarial assumptions and information regarding the discount rate are discussed in Note 7E below.
85 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
E. Information Common to the Miscellaneous, Safety and PARS Plans CalPERS collects employer contributions for the cost-sharing plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund. The dollar amounts are billed on a monthly basis. The City’s required contributions for the unfunded liability in the Miscellaneous and Safety Plans were $1,523,386 and $3,077,626 respectively.

PARS Retirement Enhancement Plan (REP) – The City makes all contributions necessary to fund the benefits available under the REP. Employees are not permitted to make any contributions.

Actuarial Assumptions – For the measurement period ended June 30, 2023, for CalPERS, the total pension liabilities were determined by rolling forward the June 30, 2022 total pension liability. The PARS REP total pension liability for the measurement period ended June 30, 2024, was determined by an actuarial valuation as of that date. The June 30, 2024 total pension liabilities were based on the following actuarial methods and assumptions:

CalPERS PARS REP
Valuation Date June 30, 2022 June 30, 2023
Measurement Date June 30, 2023 June 30, 2024
Actuarial Cost Method Entry-Age Normal in accordance with the requirements of GASB 68
Actuarial Assumptions:

Discount Rate 6.90% 6.30%
Inflation 2.30% 2.30%
Payroll Growth 2.80% 2.80%
Projected Salary Increase Varied by Entry Age and Service 2021 CalPERS Merit Salary Increases Investment Rate of Return 6.90% (1) 6.30%
Mortality Derived using CalPERS' Membership Data
for all Funds(2)
Derived using CalPERS' Membership Data
for all Funds(2)
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance
floor on purchasing power applies, 2.30%
thereafter.

Retirement rates of 30% per year starting at
age 55 with required years of service.
(1) Net of pension plan investment expenses, including inflation (2) The mortality table used was developed based on CalPERS-specific data. The rates incorporate generational mortality to capture ongoing mortatility improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details, please refer to the 2021 CalPERS Experience Study that can be found on the CalPERS website. 86 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
E. Information Common to the Miscellaneous, Safety and PARS Plans, Continued CalPERS
Discount Rate – The discount rate used to measure the total pension liability for each Plan was 6.90%.

The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and the contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term expected rate of return on plan investments was applied to all period of projected benefit payments to determine the total pension liability for each Plan.

In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the longterm projected portfolio return.

The expected real rates of return by asset class are as follows:
87 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. PENSION PLANS, Continued
E. Information Common to the Miscellaneous, Safety and PARS Plans, Continued PARS Retirement Enhancement Plan (REP)
The REP’s range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation as follows:

Changes of Assumptions – The discount rate increased from 6.18% to 6.3% for the June 30, 2024 REP.

Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position with CalPERS and PARS are available in the separately issued CalPERS financial report with CalPERS and City of Pacifica, respectively.

8. RISK MANAGEMENT
A. Workers’ Compensation
The City is a member of the Municipal Pooling Authority of Northern California, which pools risks under the terms of a joint-powers agreement with 31 other cities and governmental agencies. The City has no workers’ compensation deductible for claims and the Authority covers claims up to $500,000.

The Authority purchases excess insurance from $500,000 to the statutory limit. The City paid premiums of $868,934 during fiscal year end June 30, 2024 for workers’ compensation and excess workers’ compensation coverage.

The Authority is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the Authority, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board.

The City’s deposits with the Authority are in accordance with formulas established by the Authority.

Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. 88 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. RISK MANAGEMENT, Continued
A. Workers’ Compensation, Continued
Audited financial statements can be obtained from Municipal Pooling Authority, 1911 San Miguel Drive #100, Walnut Creek, CA 94596.

B. General Liability
On July 1, 1986, the City became a member of the Association of Bay Area Governments (ABAG) Pooled Liability Assurance Network (PLAN). PLAN is a not-for-profit organization established to provide certain levels of liability insurance coverage, claims and risk management services, and legal defense to thirty- one San Francisco Bay Area cities. PLAN is governed by a Board of Directors comprised of officials appointed by each participating member and is administered by the Association of Bay Area Governments (ABAG). Complete financial statements for ABAG PLAN may be obtained from their offices at the following address: ABAG PLAN Corporation, Finance Department, 375 Beale Street, Ste 700, San Francisco, CA 94105- 2066.

The City paid premiums of $2,011,935 during fiscal year end June 30, 2024 for general liability and property coverage in excess of the City’s self-insured retention. Members may receive rebates when declared by ABAG or, in the event excess liability claims against ABAG exceed available resources, may be required to make additional contributions.

The City is self-insured for the first $50,000 of general liability for each occurrence, and the excess (up to $35,000,000 for each occurrence and annual aggregate) is covered through the City’s participation in the ABAG PLAN.

The City maintains an internal service fund to account for these insurance programs. Claims expenses and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported.

Changes in the total reported liability resulted from the following:
89 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

9. INTERFUND TRANSACTIONS
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as interfund receivables/interfund payables (i.e., the current portion of interfund loans) or advances to/from other funds (the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as interfund receivables or interfund payables. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as internal balances.

A. Internal Balances
Internal balances are presented in the entity-wide financial statements only. They represent the net interfund receivables and payables after the elimination of all such balances within governmental and business-type activities.

B. Transfers
Resources may be transferred from one City/District fund to another. The purpose of the majority of transfers is to move resources from one fund to another. Less often, a transfer may be made to open or close a fund.

The following is a summary of transfers for the fiscal year ended June 30, 2024:

General Fund – The General Fund transferred money to other funds for capital projects and to the Internal Service Funds to pay for its share of costs in those funds.

Non-Major Governmental Funds – These funds transferred money to the General Fund to support the Public Works Department in street and stormwater maintenance and projects. The transfers to the General Capital Improvement Fund were for streets-related and other capital improvement projects.

Transfers among the non-major governmental funds were to pay for debt service as well as to repay streets-related funds for prior expenditures.

Sewer Utility – Transfers from this fund were to pay for a portion of insurance costs. 90 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

9. INTERFUND TRANSACTIONS, Continued
B. Interfund Receivables and Payables
The composition of interfund balances as of June 30, 2024 is as follows:

10. NET POSITION AND FUND BALANCES
A. Net Position
Net position is measured on the full accrual basis, while Fund Balance is measured on the modified accrual basis.

Net position is divided into three captions. These captions apply only to net position as determined at the government-wide level, and are described below:

Net Investment in Capital Assets describes the portion of net position, which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include capital projects, revolving loan programs, and other various grant programs.

Unrestricted describes the portion of net position which is not restricted as to use.

When both restricted and unrestricted net position is available, restricted resources are depleted first before the unrestricted resources are used.

B. Fund Balances
Fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows:
91 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

10. NET POSITION AND FUND BALANCES, Continued
B. Fund Balances, Continued
Nonspendable – The nonspendable fund balance category includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact.

The “not in spendable form” criterion includes items that are not expected to be converted to cash. It also includes the long-term amount of interfund loans.

Restricted – Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation (City ordinance).

Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandate payment of resources (from external resource providers) and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. Legal enforceability means that the City can be compelled by an external party-such as citizens, public interest groups, or the judiciary to use resources created by enabling legislation only for the purposes specified by the legislation.

Committed – The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action (ordinance) of City Council. Those committed amounts cannot be used for any other purpose unless City Council removes or changes the specified use by taking the same type of action (ordinance) it employed to previously commit those amounts. In contrast to fund balance that is restricted by enabling legislation, committed fund balance classification may be redeployed for other purposes with appropriate due process. Constraints imposed on the use of committed amounts are imposed by City Council, separate from the authorization to raise the underlying revenue; therefore, compliance with these constraints is not considered to be legally enforceable. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned – Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In the General Fund, assigned amounts represent intended uses established by City Council or a City official delegated that authority by City ordinance (City Manager).

Unassigned – Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

The City applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. 92 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

10. NET POSITION AND FUND BALANCES, Continued
B. Fund Balances, Continued
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

The constraints placed on fund balance for the major governmental funds and all other governmental funds at June 30, 2024 are as follows:

General
Capital Non-Major Total
General Improvement Governmental Governmental
Fund Fund Fund Funds
Nonspendable:

Prepaid Items 8,287 $ - $ - $ 8,287 $
Subtotal - 8,287 - 8,287
Restricted for:

PARS Pension Trust 375,291 - 375,291 -
Supplemental law enforcement - 409,510 - 409,510
Trust activities - 2,397,961 - 2,397,961
Catastrophic events - 7,103,135 - 7,103,135
Streets and roads - 3,618,163 - 3,618,163
Housing - 638,215 - 638,215
Parking - 126,465 - 126,465
Debt services - 264,994 - 264,994
Stormwater operations - 183,452 - 183,452
Parks, beaches, and recreation - 2,030,012 - 2,030,012
Capital projects 4,132,923 - 1,396,559 5,529,482
Subtotal 375,291 4,132,923 18,168,466 22,676,680
Assigned for: -
Fund Balance Reserve 4,728,876 - 4,728,876 -
Facility Main & Replace Reserve 205,000 - 205,000 -
Compensated Absences Reserve 200,000 - 200,000 -
Child Care Reserve 494,591 - 494,591 -
Legal Reserve 100,000 - 100,000 -
Debt services - 2,393,081 - 2,393,081
Housing - 1,747,870 - 1,747,870
Capital projects - - - -
Subtotal 5,728,467 4,140,951 - 9,869,418
Unassigned: 12,628,405 (3,691,050) (940,459) 7,996,896
Total $ 18,740,450 $ 441,873 $ 21,368,958 $ 40,551,281
93 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

10. NET POSITION AND FUND BALANCES, Continued
C. Net Investment in Capital Assets
The Net Investment in Capital Assets are calculated as below:

11. CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the Federal Government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

The City is a party to litigative matters in the normal course of conducting City business. Two such matters have resulted in judgements that the City considers reasonably possible:

Eminent Domain - In February 2024, the trial court entered judgment in an eminent domain action awarding the property owner $2 million as just compensation plus $467,126 in prejudgment interest, attorneys’ fees, expert fees, and costs. The City appealed and on December 18, 2024, the Court of Appeal affirmed the Judgment in its entirety. The City is now considering its options, which include (1) completing the condemnation; (2) seeking review by the California Supreme Court; or (3) abandoning the eminent domain action.

CEQA - Petitioners filed action against a project approval challenging CEQA procedures the City performed, as well as another party involved. On March 6, 2024, the judge signed and entered an Order awarding Petitioners a total of $1,286,145. Of that amount the City is jointly and severally liable for $998,445 with the other parties in the litigation. The City and other parties have appealed the fees. Estimated loss is $0-$998,445.

12. SUCCESSOR AGENCY TO FORMER REDEVELOPMENT AGENCY ACTIVITIES On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Pacifica that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. On January 23, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City resolution number 01- 2012.
94 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. SUCCESSOR AGENCY TO FORMER REDEVELOPMENT AGENCY ACTIVITIES, Continued Long Range Property Management Plan – On December 10, 2015, the Successor Agency received confirmation from the California Department of Finance that it had reviewed and approved the Successor Agency’s Long Range Property Management Plan (LRPMP).

Long-term Debt – Long-term debt of the Successor Agency as of June 30, 2024, consisted of the following:
2004 Tax Allocation Bonds: In August 2004, the former Redevelopment Agency (Agency) issued $1,725,000 in Rockaway Beach Redevelopment Project 2004 Tax Allocation Bonds at interest rates ranging from 2.9% to 5.75%. The net proceeds of the bonds were issued to refinance redevelopment activities by repaying a portion of the loan made by the City to the Agency and to establish a reserve fund. Interest on the bonds is payable semiannually on January 1 and July 1 each year, commencing January 1, 2005. The bonds mature on July 1, 2031. The bonds are payable exclusively from pledged tax revenues to be derived from the project area and from the amounts on deposits in certain funds and accounts, including the reserve account and the revenue account.

The Bonds are general obligations of the Agency payable by the Agency. The bond covenants contain events of default that require the revenue of the Agency to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the Agency to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the Agency; or if any court or competent jurisdiction shall assume custody or control of the Agency. No such events occurred during the fiscal year ending June 30, 2024.

Annual debt service requirements, to maturity, for the 2004 Tax Allocation Bonds are as follows:
95 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

13. PRIOR PERIOD ADJUSTMENTS
A. Correction of an Error in Previously Issued Financial Statements (Column A on the table) During fiscal year 2024, the City determined errors had occurred in prior year financial statements and made the following corrections:
x General Fund and Private Purpose Trust Fund
o To remove the liability in the Successor Agency to the General Fund as it was no longer an allowable liability per the State of California’s Department of Finance. The change corrected an overstatement in fiscal year 2022-23 of loans receivable in the General Fund and loans payable in the Successor Agency fund in the amount of $3,663,008. x Sewer Utility Fund
o To capitalize projects that were not capitalized in fiscal year 2022-23. Capital assets in the prior year were understated by $557,922 in the Sewer Utility Fund. x Internal Service Funds
o To adjust capital assets for depreciation that had been missed in the prior year.

Depreciation expense was understated by $54,363, and total capital assets were overstated by the same amount in fiscal year 2022-23.
x Governmental Activities (increase in beginning Net Position of $432,571) o To adjust deferred charges on debt that were historically misstated due to the deferred charges not being recorded when the 2019 Pension Obligation Refunding Bonds were refunded in the fiscal year ended June 30, 2020. Deferred Charges on Refunding of Debt was understated by the following amounts and fiscal years:

B. Prior Period Adjustments Reconciliation
The table on the following page displays the prior fund balances and net positions at June 30, 2023, and the changes made as a result of both:
x error corrections;
x changes in reporting unit for funds moving from major to nonmajor. 96 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

13. PRIOR PERIOD ADJUSTMENTS, Continued
B. Prior Period Adjustments Reconciliation, Continued
June 30, 2023,
as previously
reported
Change from
major to
nonmajor fund
Error
correction
(Column A)
June 30, 2023,
as restated
Governmental Funds:

Major Governmental Funds
General Fund 20,547,470 $ - $ (3,663,008) $ 16,884,462 $ Disaster Accounting 7,472,999 (7,472,999) - -
Capital Improvement 5,316,581 - - 5,316,581
Debt Service 2,699,165 (2,699,165) - -
Nonmajor Governmental Funds 10,833,411 10,172,164 - 21,005,575 Total Governmental Funds 46,869,626 $ - $ (3,663,008) $ 43,206,618 $ Proprietary Funds:

Major Enterprise Funds
Sewer Utility Fund 33,040,395 $ - $ 557,922 $ 33,598,317 $ Non-major Enterprise Funds 186,299 - - 186,299
Total Enterprise Funds 33,226,694 $ - $ 557,922 $ 33,784,616 $ Internal Service Funds $ - 4,405,015 $ (54,363) $ 4,350,652 $ Government-Wide:

Governmental Activities 71,627,558 $ - $ (3,284,800) $ 68,342,758 $ Business-Type Activities 33,226,694 - 557,922 33,784,616 Total Primary Government 104,854,252 $ - $ (2,726,878) $ 102,127,374 $ 97 This page intentionally left blank
98 REQUIRED

SUPPLEMENTARY INFORMATION
99 City of Pacifica
Required Supplementary Information
For the year ended June 30, 2024
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan - Last 10 Years Schedule of Changes in Net Pension Liability and Related Ratios Measruement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017

TOTAL PENSION LIABILITY
Service cost $ 1,445,205 $ 1,427,162 $ 1,495,380 $ 1,631,204 Interest 5,862,583 6,123,624 6,346,516 6,501,283
Differences between expected and actual
experience (328,078) - (755,420) (1,136,322)
Changes in assumptions (1,478,509) - - 5,308,829
Changes in benefits - - - -
Benefit payments, including refunds of employee
contributions (3,440,758) (3,784,383) (4,047,332) (4,185,238) Net change in the total pension liability $ 3,867,030 1,959,816 3,039,144 8,119,756 Total pension liability - beginning $ 79,165,549 83,032,579 84,992,395 88,031,539 Total pension liability - ending (a) $ 83,032,579 $ 84,992,395 $ 88,031,539 $ 96,151,295

PLAN FIDUCIARY NET POSITION
Contributions - employer $ 993,077 $ 1,081,227 $ 1,256,738 $ 1,459,527 Contributions - employee 622,734 622,660 685,119 711,067 Net investment income 11,283,773 1,641,405 382,638 7,967,324 Administrative expense (83,654) (45,303) - (107,140)
Benefit payments, including refunds of employee
contributions (3,440,758) (3,784,383) (4,047,332) (4,185,238) Net Plan to Plan Resource Movement - - - -
Other Miscellaneous Income/(Expense) - - - -
Net change in plan fiduciary net position 9,458,826 (522,745) (1,768,140) 5,845,540 Plan fiduciary net position - beginning 65,398,696 74,857,522 74,334,777 72,566,637 Plan fiduciary net position - ending (b) $ 74,857,522 $ 74,334,777 $ 72,566,637 $ 78,412,177 Net pension liability - ending (a) - (b) $ 8,175,057 $ 10,657,618 $ 15,464,902 $ 17,739,118 Plan fiduciary net position as a percentage of the
total pension liability 90.15% 87.46% 82.43% 81.55%
Covered employee payroll $ 7,982,929 $ 8,049,221 $ 8,463,442 $ 9,007,097 Net pension liability as a percentage of covered
payroll 102.41% 132.41% 182.73% 196.95%
Notes to the Schedule:

Benefit changes - The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions - In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, 2018, 2019, 2020 and 2021, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from

7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. 100
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 $ 1,756,360 1,716,353 $ 1,869,810 $ 1,748,773 $ 2,027,984 $ 2,115,178 $ 7,042,527 6,687,032 7,404,044 7,659,792 7,695,427 7,985,544 (407,869) 1,371,619 1,330,180 (230,958) (2,876,564) 436,408 (739,131) - - 3,375,679 - -
- - - - 140,626 -
(4,675,098) (4,971,021) (5,288,206) (5,522,755) (5,775,851) (6,503,043) 2,581,287 5,199,485 5,315,828 3,654,852 4,446,675 4,174,713 96,151,295 98,732,582 103,932,067 109,247,895 112,902,747 117,349,422 $ 98,732,582 $ 103,932,067 $ 109,247,895 $ 112,902,747 $ 117,349,422 $ 121,524,135 $ 1,571,937 $ 1,896,427 $ 2,217,115 $ 2,515,162 $ 2,878,445 $ 3,179,278 749,462 733,521 769,486 782,756 780,752 856,956
6,524,986 5,347,965 4,206,783 19,473,439 (7,840,411) 5,827,606 (122,188) (58,680) (120,079) (86,870) (64,863) (69,199) (4,675,098) (4,971,021) (5,288,206) (5,522,755) (5,775,851) (6,503,043) (191) - - - - -
(232,037) 191 - - - -
3,816,871 2,948,403 1,785,099 17,161,732 (10,021,928) 3,291,598 78,412,177 82,229,048 85,177,451 86,962,550 104,124,282 94,102,354 $ 82,229,048 $ 85,177,451 $ 86,962,550 $ 104,124,282 $ 94,102,354 $ 97,393,952 $ 16,503,534 $ 18,754,616 $ 22,285,345 $ 8,778,465 $ 23,247,068 $ 24,130,183

83.28% 81.95% 79.60% 92.22% 80.19% 80.14%
$ 9,138,180 $ 9,754,931 $ 11,058,613 $ 10,084,809 $ 10,091,313 $ 10,575,260 180.60% 192.26% 201.52% 87.05% 230.37% 228.18%
101
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2024
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan - Last 10 Years Schedule of Contributions
Fiscal Year Ended 2015 2016 2017 2018
Actuarially determined contribution 1,081,226 $ 1,256,739 $ $ 1,454,468 $ 1,571,900 Contributions in relation to actuarially
determined contributions (1,081,226) (1,256,739) (1,454,468) (1,571,900) Contribution deficiency (excess) $ - $ - $ - $ -
Covered employee payroll $ 8,049,221 $ 8,463,442 $ 9,007,097 $ 9,138,180 Contributions as a percentage of
covered employee payroll 13.43% 14.85% 16.15% 17.20%
Notes to Schedule
Valuation date June 30, 2013 June 30, 2014 June 30, 2015 June 30, 2016 Actuarial cost method Entry age normal
Amortization method Level percentage of payroll
Asset valuation method Market Value of Assets
Inflation
Salary increases Varies by entry age and service
Payroll growth 2.75%
Investment rate of return
Retirement age
Mortality

2.75% for 2015 to 2019, 2.625% for 2020, 2.50% for 2021, 2.375% for 2022, and 2.50% for 2023 and 2024

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, 7.125% for 2021, and 7.00% for 2022 & 2023, net of pension plan investment expense and administrative expenses, includes inflation The probabilities of retirement are based on the CalPERS Experience Study
The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019- 2023, pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP2016 published by the Society of Actuaries. 102
2019 2020 2021 2022 2023 2024
$ 1,896,427 $ 2,217,115 $ 2,515,162 $ 2,691,698 $ 3,179,278 $ 2,936,528 (1,896,427) (2,217,115) (2,515,162) (2,691,698) (3,179,278) (2,936,528) $ - $ - $ - $ - $ - $ -
$ 9,754,931 $ 11,058,613 $ 10,084,809 $ 10,091,313 $ 10,575,260 $ 11,082,416

19.44% 20.05% 24.94% 26.67% 30.06% 26.50%
June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 103
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2024
Safety Cost Sharing Multiple-Employer Defined Benefit Pension Plan Schedule of proportionate share of the net pension liability and related ratios as of the measurement date - Last 10 Years Safety
Measurement Date 6/30/2014 6/30/2015 6/30/2016
Plan's proportion of the net pension liability 0.50100% 0.30470% 0.31736% Plan's proportionate share of the net pension liability 18,808,357 $ 20,914,148 $ $ 27,461,120 Plan's covered payroll $ 6,019,600 $ 5,843,663 $ 5,928,087 Plan's proportionate share of the net pension liability as percentage of covered payroll 312.45% 357.89% 463.24% Fiduciary net position as a percentage of the total
pension liability 79.82% 78.40% 74.06%
104
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023

0.31884% 0.33291% 0.33907% 0.34935% 0.70282% 0.38120% 0.37673% $ 31,620,401 $ 32,079,854 $ 34,744,594 $ 38,010,670 $ 24,515,482 $ 44,031,142 $ 46,998,326 $ 6,058,030 $ 5,988,447 $ 6,575,368 $ 4,398,589 $ 7,147,760 $ 7,319,572 $ 7,451,755 521.96% 535.70% 528.41% 864.16% 342.98% 601.55% 630.70%

73.31% 75.26% 75.26% 75.10% 88.29% 76.68% 76.21%
105
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2024
Cost Sharing Multiple-Employer Defined Benefit Pension Plan - Last 10 Fiscal Years Schedule of contributions
Safety
Fiscal Year Ended 2015 2016 2017 2018
Actuarially determined contribution $ 1,437,730 $ 1,900,131 $ 2,158,037 $ 2,398,015 Contributions in relation to actuarially
deemed contributions (1,437,730) (1,900,131) (2,158,037) (2,398,015) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 5,843,663 $ 5,928,087 $ 6,058,030 $ 5,988,447 Contributions as a percentage of
covered payroll 24.60% 23.02% 35.62% 40.04%
106
2019 2020 2021 2022 2023 2024
$ 2,830,926 $ 3,301,555 $ 3,724,131 $ 4,160,867 $ 4,545,479 $ 4,655,716 (2,830,926) (3,301,555) (3,724,131) (4,160,867) (4,545,479) (4,655,716) $ - $ - $ - $ - $ - $ -
$ 6,575,368 $ 4,398,589 $ 7,147,760 $ 7,319,572 $ 7,451,755 $ 7,627,310

43.05% 75.06% 52.10% 56.85% 61.00% 61.04%
107
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2024
PARS REP Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Changes in Net Pension Liability and Related Ratios 6/30/2015 6/30/2016 6/30/2017
Total Pension Liability
Service cost $ 97,626 $ 55,073 $ 56,725
Interest 218,058 228,048 238,515
Differences between expected and actual experience - (136,732) - Effect of economic/demographic gains or losses - 143,356 196,706 Effect of assumptions changes or inputs ---
Benefit payments, including refunds of employee
contributions (126,197) (144,782) (149,371)
Net change in the total pension liability 189,487 144,963 342,575 Total pension liability - beginning 2,972,061 3,161,548 3,306,511 Total pension liabilty - ending (a) 3,161,548 3,306,511 3,649,086 Plan Fiduciary Net Position
Contribution - employer 159,573 127,848 123,391
Net investment income 36,034 7,840 172,456
Other changes - - -
Benefit payments, including refunds of employee
contributions (126,197) (144,782) (149,371)
Administrative expenses (8,448) (9,150) (8,664)
Net change in plan fiduciary net position 60,962 (18,244) 137,812 Plan fiduciary net position - beginning 1,994,520 2,055,482 2,037,238 Plan fiduciary net position - ending (b) 2,055,482 2,037,238 2,175,050 Net pension liability/asset - ending (a) - (b) $ 1,106,066 $ 1,269,273 $ 1,474,036 Plan fiduciary net position as a percentage of the total pension liability 65.02% 61.61% 59.61%
Covered-employee payroll 1,485,442 $ 1,530,005 $ 1,303,994 $ Net pension liability as percentage of covered payroll 74.46% 82.96% 113.04% Notes to Schedule:

Benefit changes - The figures above do not include any liability impact that may have resulted from plan changes which occurred after the actuarial valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions - In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, and 2021, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2024, amounts reported were based on the 7.5% discount rate. 108
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 $ 47,461 $ 48,885 $ 35,933 $ 36,921 $ 20,726 $ 21,296 $ 15,270 244,298 247,550 253,625 263,809 267,267 271,109 271,346 (78,177) - 12,653 - - 205,177 25,322
- - 57,961 - 24,928 - -
- - 8,541 - - 174,017 (53,493)
(157,202) (176,795) (210,707) (227,211) (239,609) (269,603) (312,994) 56,380 119,640 158,006 73,519 73,312 401,996 (54,549)
3,649,086 3,705,466 3,825,106 3,983,112 4,056,631 4,129,943 4,531,939 3,705,466 3,825,106 3,983,112 4,056,631 4,129,943 4,531,939 4,477,390 121,576 98,849 96,419 97,888 97,904 143,054 161,855
133,898 136,800 65,576 492,499 (337,585) 143,671 247,324 - - - - - (14,253) -
(157,202) (176,795) (210,707) (227,211) (239,609) (269,603) (312,994) (9,009) (9,066) (9,143) (9,559) (9,848) (8,951) (13,415) 89,263 49,788 (57,855) 353,617 (489,138) 8,171 68,517
2,175,050 2,264,313 2,314,101 2,256,246 2,609,863 2,120,725 2,128,896 2,264,313 2,314,101 2,256,246 2,609,863 2,120,725 2,128,896 2,197,413 $ 1,441,153 $ 1,511,005 $ 1,726,866 $ 1,446,768 $ 2,009,218 $ 2,403,043 $ 2,279,977

61.11% 60.50% 56.65% 64.34% 51.34% 46.98% 49.08%
$ 1,351,614 $ 988,068 $ 1,015,240 $ 630,037 $ 647,363 $ 322,533 $ 331,564 106.62% 152.93% 170.09% 229.63% 310.37% 745.05% 687.64% 109
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2024
PARS Retirement Enhance Plan (REP) Defined Benefit Pension Agent Multiple-Employer Plan Schedule of Contributions - Last 10 Fiscal Years
Fiscal Year Ended June 30, 2015 2016 2017 2018
Actuarially determined contribution 220,169 $ $ 134,581 $ 159,218 $ 161,606 Contributions in relation to the actuarially
determined contribution (159,573) (127,848) (123,391) (121,576) Contribution deficiency (excess) $ 60,596 $ 6,733 $ 35,827 $ 40,030 Covered employee payroll $ 1,485,442 $ 1,530,005 $ 1,303,994 $ 1,351,614 Contributions as a percentage of
covered employee payroll 10.74% 8.36% 9.46% 8.99%
Notes to Schedule
Valuation date: 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry-Age Normal
Amortization method Level dollar of payroll, closed
Amortization period 15 years as of June 30, 2017
Asset valuation method None
Inflation 2.30%
Salary increases
Investment rate of return 6.18%
Retirement
Mortality
Consistent with the rates used to value the Miscellaneous Agency CalPERS Pension Plans (Entry Age 30)
Retirement rates of 30% per year starting at age 55 with required years of service.

Consistent with the Non-Industrial rates used to value the Miscellaneous CalPERS Pension Plans.
110
2019 2020 2021 2022 2023 2024
$ 159,968 $ 164,367 $ 152,028 $ 152,028 $ 238,078 $ 337,762 (98,849) (96,419) (97,888) (97,904) (143,054) (161,855) $ 61,119 $ 67,948 $ 54,140 $ 54,124 $ 95,024 $ 175,907
$ 988,068 $ 1,015,240 $ 630,037 $ 647,363 $ 322,533 $ 331,564

10.00% 9.50% 15.54% 15.12% 44.35% 48.82%
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 111
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2024
Single Employer Other Post-Employment Benefits Plan
Schedule of Changes in Net OPEB Liability and Related Ratios - Last 10 Years* Measurement Date 6/30/2018 6/30/2019 6/30/2020
Total OPEB Liability (1)
Service cost $ 328,27 303,274 $ 7 $ 368,174
Interest 233,437 234,697 239,312
Differences between expected and actual
experience (527,075) - 254,368
Changes of assumptions (320,279) 345,836 1,192,492
Benefit payments (173,450) (167,371) (184,166)
Net change in the total OPEB liability (484,093) 741,439 1,870,180 Total OPEB liability - beginning 6,304,041 5,819,948 6,561,387 Total OPEB liabilty - ending (a) $ 5,819,948 $ 6,561,387 $ 8,431,567 Plan Fiduciary Net Position
Contribution - employer
Benefit payments
Net investment income
Administrative expenses
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net OPEB liability/asset - ending (a) - (b)
Plan fiduciary net position as a percentage of the
total OPEB liability
Covered-employee payroll $ 18,617,151 $ 16,078,058 $ 16,614,061 Net OPEB liability as percentage of covered payroll 31.26% 40.81% 50.75% Notes to Schedule:
(1) No assets were accumulated in a trust that meets the criteria in paragraph 4 of Governmental Accounting Standards Board Statement No. 75 until the fiscal year ended June 30, 2022. * Fiscal year 2018 was the first year of implementation 112
6/30/2021 6/30/2022 6/30/2023
$ 524,816 $ 552,648 $ 178,873
195,445 203,996 301,717
- (1,097,576) (10,282)
72,300 (3,856,679) -
(225,411) (215,446) (245,491)
567,150 (4,413,057) 224,817
8,431,567 8,998,717 4,585,660
$ 8,998,717 $ 4,585,660 4,810,477
415,446 504,300
(215,446) (136,800)
(30,177) 27,932
(862) (1,011)
168,961 394,421
- 168,961
168,961 563,382
$ 4,416,699 $ 4,247,095

3.68% 11.71%
$ 17,232,569 $ 16,464,771 $ 15,911,780

52.22% 26.83% 26.69%
113
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2024
Single Employer Other Post-Employment Benefits Plan
Schedule of OPEB Contributions - Last 10 Fiscal Years*
Fiscal Year Ended June 30, 2023 2024
Actuarially determined contribution 510,394 $ $ 525,706 Contributions in relation to the actuarially
determined contribution (504,300) (447,667)
Contribution deficiency (excess) $ 6,094 $ 78,039
Covered employee payroll $ 15,911,780 $ 16,286,643
Contributions as a percentage of
covered employee payroll 3.17% 2.75%
Notes to Schedule
Valuation date: 6/30/2022 6/30/2022
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry-Age Normal
Amortization method Level dollar of payroll, closed
Amortization period 20 years as of June 30, 2022
Inflation 2.50%
Salary increases 2.80%
Investment rate of return 7.50%
Mortality
* Fiscal year 2023 was the first year an actuarially determined contribution was calculated.

Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board. 114
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2024

1. BUDGET BASIS OF ACCOUNTING
The City prepares a budget for each fiscal year on or before June 30. Budgeted expenditures are enacted into law through the passage of an Appropriation Resolution. This resolution mandates the maximum authorized expenditures for the fiscal year and cannot be exceeded except by subsequent amendments to the budget by the City Council.

From the effective date of the budget, which is adopted and controlled at the department level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The legal level of control is the department. The City Council may amend the budget by resolution during the fiscal year.

Formal budgetary integration is employed as a management control device during the fiscal year for the General fund and Special Revenue and Capital Project Funds. The General Fund budget and Special Revenue and Capital Project Fund budgets are adopted on a basis consistent with accounting principles generally accepted in the United States (US GAAP) and are consistent with the basis used for financial reporting.

Accordingly, actual revenues and expenditures can be compared with related budget amounts without any reconciliation.
115
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes
Property $ 16,265,800 $ 16,265,800 $ 16,281,566 $ 15,766 Sales 6,201,000 5,731,000 5,766,170 35,170
Franchise 1,236,200 1,236,200 1,324,720 88,520
Other 6,669,500 6,969,500 7,030,502 61,002
Licenses and permits 1,389,800 1,337,800 1,435,267 97,467 Fines and forfeitures 183,600 133,600 125,418 (8,182)
Use of money and property 656,300 886,300 956,441 70,141 Intergovernmental 8,015,000 6,390,500 7,380,288 989,788 Charges for services 4,521,800 3,771,800 2,866,464 (905,336) Recreation programs 549,600 720,600 714,534 (6,066)
Other 1,960,600 1,960,600 2,611,902 651,302
Total revenues 47,649,200 45,403,700 46,493,272 1,089,572 EXPENDITURES:

General Government
City Council 213,400 213,400 197,641 15,759
City Manager 2,256,605 2,256,605 2,066,828 189,777
Human Resources 902,394 902,394 887,543 14,851
City Attorney 1,320,400 1,320,400 601,825 718,575
Finance 2,338,742 2,338,742 2,143,644 195,098
Non-departmental 1,139,400 1,139,400 1,109,189 30,211
Public Safety
Police 12,003,588 12,003,588 12,146,108 (142,520)
Fire 7,687,367 7,687,367 7,968,230 (280,863)
Community development --
Planning 5,831,717 5,031,717 3,459,001 1,572,716
Public Works
Engineering Services 1,276,252 1,312,752 1,264,815 47,937 Street and traffic maintenance 1,782,402 1,877,402 1,529,559 347,843 Building maintenance and improvement 578,544 578,544 724,052 (145,508) Fishing pier/rest stop maintenance 420,579 420,579 330,842 89,737 City parks and playfields 843,245 843,245 888,043 (44,798) Budgeted Amounts
(continued)
116
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund, Continued
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Parks, Beaches, and Recreation
Parks, beaches, and recreation 313,556 313,556 296,863 16,693 Community center programs 260,280 260,280 292,928 (32,648) Cultural arts - - 377 (377)
Elementary age recreation 169,228 169,228 229,630 (60,402) Teens and j-teens recreation 62,647 62,647 73,689 (11,042) Adult sports - - 8,752 (8,752)
Senior 279,181 279,181 281,141 (1,960)
Instructional class 114,417 114,417 332,955 (218,538)
Recreation swimming 402,385 402,385 323,786 78,599
Swim Team 68,213 68,213 43,895 24,318
Special community recreation 113,131 113,131 164,511 (51,380) Special projects 4,079,588 4,079,588 3,778,444 301,144
Capital outlay 123,800 123,800 70,693 53,107
Total expenditures 44,581,061 43,912,561 41,214,984 2,697,577

REVENUES OVER (UNDER)
EXPENDITURES 3,068,139 1,491,139 5,278,288 3,787,149
OTHER FINANCING SOURCES (USES):

Transfers in 1,291,900 1,291,900 1,291,900 -
Transfers out (4,026,200) (4,714,200) (4,714,200) -
Total other financing sources (uses) (2,734,300) (3,422,300) (3,422,300) - Net change in fund balances $ 333,839 $ (1,931,161) 1,855,988 $ 3,787,149 FUND BALANCES:

Beginning of year 20,547,470
Restatement (3,663,008)
Beginning of year, as restated 16,884,462
End of year $ 18,740,450
Budgeted Amounts
117
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118

SUPPLEMENTARY INFORMATION
119
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Capital Improvement Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Licenses and permits $ 25,000 $ 25,000 $ 12,105 $ (12,895) Use of money and property 1,000 1,000 197,191 196,191
Intergovernmental 2,500,000 2,500,000 287,040 (2,212,960) Other -- 75,000 75,000
Total revenues 2,526,000 2,526,000 571,336 (1,954,664)
EXPENDITURES:

Current:

Community development 197,000 197,000 52,685 144,315
Public Works - - 115,855 (115,855)
Capital outlay 4,415,000 5,155,600 7,830,504 (2,674,904) Total expenditures 4,612,000 5,352,600 7,999,044 (2,646,444)

REVENUES OVER (UNDER)
EXPENDITURES (2,086,000) (2,826,600) (7,427,708) (4,601,108) OTHER FINANCING SOURCES (USES):

Transfers in 1,865,000 2,553,000 2,553,000 -
Total other financing sources (uses) 1,865,000 2,553,000 2,553,000 - Net change in fund balances $ (221,000) $ (273,600) (4,874,708) $ (4,601,108) FUND BALANCES:

Beginning of year 5,316,581
End of year $ 441,873
Budgeted Amounts
120
City of Pacifica
Nonmajor Governmental Funds
Year Ended June 30, 2024
Special Revenue Funds
Special Revenue Funds are created in accordance with Federal, State, or City regulations which require that monies apportioned from these specific funds be spent only for certain designated purposes. Funds included in this fund category are:

Gas Tax Special Revenue Fund
This fund was established to receive and expend the City’s allocation of the State Gasoline Taxes. Each City is allocated funds on a population basis in accordance with Section 2103, 2105, 2106, 2107 and 2107.5 of the California Street and Highway Code. Population is determined by the latest Federal Census or survey requested and certified by the Cities and conducted by the State Department of Finance. Expenditures may be made for construction or purchasing of right-of-way on minor streets. Expenditures of money apportioned under Section 2107 may be made for any street purpose. Under Section 2107.5 a flat allocation of $6,000 per year is granted the City for street engineering.

Davies Trust Special Revenue Fund
This fund was established to account for a donation by a private individual which is restricted for specific purposes.

The funds are to be used to help acquire, build, remodel, improve, support, and maintain the equipment, buildings, grounds, yard, gardens, and landscaped areas of the various parks, beaches, and recreational area located in Pacifica, to conduct related educational and recreational programs for the benefit of the general public.

Supplemental Law Enforcement Services Fund
This fund was created to account for revenues and expenditures associated with money allocated by the legislature to all cities and counties throughout the state to supplement front line law enforcement services NPDES Stormwater Fund
The NPDES (National Pollution Discharge Elimination System) Stormwater Fund was established in fiscal year 1994- 95 to account for revenues and expenditures associated with Federal and State mandated stormwater operations.

Housing In-Lieu Fund
This fund was established to account for receipts from fees imposed on developers to provide for improvements.

Parking In-Lieu Fund
This fund was established to account for receipts and expenditures from fees imposed on developers to provide for parking facilities improvements.

Street Construction Fund
This fund was established to account for Measure A and the transportation related local funding and other grant funding for streets and roads.

Parks, Beaches And Recreation Fund
This fund was established to account for various donations specifically designated for Park, Beaches and Recreation activities.
121
City of Pacifica
Nonmajor Governmental Funds
Year Ended June 30, 2024
Special Revenue Funds
Housing Successor Fund
This fund accounts for the assets and activities to the dissolved former Redevelopment Agency low and moderate income housing fund.

Measure W Fund
This fund was established to account for the City’s portion of the special half cent sales tax (Measure W) receipts restricted for street expenditures.

Street Improvement Special Revenue Fund
This fund was established to account for miscellaneous funding for local streets and roads that are not from Measure A and Measure W.

Tree Preservation Special Revenue Fund
This fund was established to account for funding for the preservation of trees in Pacifica.

Disaster Accounting Fund
This fund was established to account for all revenues and expenditures incurred due to natural and man-made disasters.

Housing Action Fund
This fund was established to account for unrestricted ERAF revenues allocated towards housing programs by Council policy.

Hotel Business Improvement
This fund was established to account for assessments levied annually on all hotels, motels, inns at a flat rate of $1.00 per room and per day of occupancy and used to promote lodging within the Hotel Business Improvement District and support operation of a visitor center.

Capital Projects Funds
Capital Projects Funds are established to account for financial resources to be used for the acquisition, construction, and improvement of major capital facilities of the City. Appropriations are made from the funds annually.

Highway 1 Improvement Fund
This fund is financed by traffic impact mitigation fees as outlined in the Pacifica Municipal Code (Section 8-15.01 to Section 8-15.06).
122
City of Pacifica
Nonmajor Governmental Funds
Year Ended June 30, 2024
Capital Projects Funds
Manor Drive Improvement Fund
This fund was established to account for the Manor Drive/Palmetto Avenue/Oceana Boulevard intersection construction and is financed by traffic impact mitigation fees as outlined in the Pacifica Municipal Code (Section 8-

18.01 to Section 8- 18.06)
Aircraft Noise Project Fund
This fund was established to record the financial transactions of an Aircraft Noise Abatement Project funded with Federal and San Francisco Airport grants.

Parks And Playfield Fund
This fund was financed by Parkland Dedication Fees as outlined in the Pacifica Municipal Code (Section 8-19.01 to Section 8-19.03).

Planned Local Drainage Fund
Revenues are derived from fees levied on new construction in local districts. Funds can be utilized only for the drainage system in those particular districts.

Pacifica Library Fund
This fund was established to account for grants and other sources for the construction of Pacifica’s library.

Frontierland Remediation Fund
This fund was established to account for remediation fees and remediation costs related to the closed landfill site at the Frontierland Park location. Recology of the Coast, the City’s recyclable/organic materials and solid waste collection franchisee pays the City a remediation fee of $6,250 per month ($75,000 annually).

Debt Service Funds
Debt Service Fund
This fund was established to account for the payment and principal and interest on general long-term debt for the City. This fund does not include any of the enterprise or internal service long-term debt, which are accounted for in those funds directly.
123
City of Pacifica
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments $ - $ - $ 422,783 $ 210,430
Cash and investments with fiscal agents ----
Restricted cash and investments - 2,702,353 - -
Receivables:

Accounts 265,770 10,319 - 7,555
Due from other funds ----
Prepaid items ----
Total assets $ 265,770 $ 2,712,672 $ 422,783 $ 217,985

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 225,996 $ - $ 13,273 $ 34,533 Due to other funds 429,941 314,711 --
Total liabilities 655,937 314,711 13,273 34,533
Fund Balances:

Restricted - 2,397,961 409,510 183,452
Assigned ----
Unassigned (390,167) ---
Total fund balances (390,167) 2,397,961 409,510 183,452 Total liabilities, deferred inflows of
resources and fund balances $ 265,770 $ 2,712,672 $ 422,783 $ 217,985 Gas Tax Davies Trust
Supplemental Law
Enforcement
Services NPDES Stormwater
124
$ 126,465 265,702 $ 1,494,075 $ 2,035,750 $ 372,513 $ 529,085 $ ------
------
- - 96,739 - - 98,179
------
------
$ 265,702 $ 126,465 $ 1,590,814 $ 2,035,750 $ 372,513 $ 627,264 $ - $ - $ 159,192 $ 5,738 $ - $ 3,930
------
- - 159,192 5,738 - 3,930
265,702 126,465 1,431,622 2,030,012 372,513 623,334
------
------
265,702 126,465 1,431,622 2,030,012 372,513 623,334
$ 265,702 $ 126,465 $ 1,590,814 $ 2,035,750 $ 372,513 $ 627,264 Special Revenue Funds
Housing In-Lieu Parking In-Lieu
Street Construction
Fund
Parks, Beaches And
Recreation Housing Sucessor Measure W
125
City of Pacifica
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments $ - 1,587,972 $ $ 1,928,614 $ -
Cash and investments with fiscal agents ----
Restricted cash and investments ----
Receivables:

Accounts - - - 1,772,055
Due from other funds - - 5,187,035 -
Prepaid items ----
Total assets $ 1,587,972 $ - $ 7,115,649 $ 1,772,055

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 24,765 $ 40,367 $ 12,514 $ - Due to other funds - 10,800 - 24,185
Total liabilities 24,765 51,167 12,514 24,185
Fund Balances:

Restricted 1,563,207 - 7,103,135 -
Assigned - - - 1,747,870
Unassigned - (51,167) --
Total fund balances 1,563,207 (51,167) 7,103,135 1,747,870 Total liabilities, deferred inflows of
resources and fund balances $ 1,587,972 $ - $ 7,115,649 $ 1,772,055 Disaster Accounting
Special Revenue Funds
Housing Action
Street Improvement Tree Preservation Fund
126
Special Revenue Funds
$ 649,829 89,866 $ - $ 448 $ 244,458 $ 309,785 $
------
------
------
------
------
$ 89,866 $ 649,829 $ - $ 448 $ 244,458 $ 309,785
$ 89,866 $ 1,321 $ 280,694 $ - $ - $ -
- - 218,431 ---
1,321 89,866 499,125 - - -
- 648,508 - 448 244,458 309,785
------
- - (499,125) ---
648,508 - (499,125) 448 244,458 309,785
$ 649,829 89,866 $ - $ 448 $ 244,458 $ 309,785 $
Hotel Business
Improvement
Capital Projects Funds
Highway 1
Improvement
Manor Drive
Improvement
Aircraft Noise
Project Parks and Playfield
Planned Local
Drainage
127
City of Pacifica
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Debt Service Fund
Total Nonmajor
Governmental
Funds
ASSETS
Cash and investments $ 54,467 $ 139,997 $ 2,279,173 $ 12,741,412 Cash and investments with fiscal agents - - 264,994 264,994 Restricted cash and investments - - - 2,702,353
Receivables:

Accounts - - - 2,250,617
Due from other funds - - - 5,187,035
Prepaid items - - 113,908 113,908
Total assets $ 54,467 $ 139,997 $ 2,658,075 $ 23,260,319

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 1,104 $ - $ - $ 893,293 Due to other funds - - - 998,068
Total liabilities 1,104 - - 1,891,361
Fund Balances:

Restricted 53,363 139,997 264,994 18,168,466
Assigned - - 2,393,081 4,140,951
Unassigned - - - (940,459)
Total fund balances 53,363 139,997 2,658,075 21,368,958 Total liabilities, deferred inflows of
resources and fund balances $ 54,467 $ 139,997 $ 2,658,075 $ 23,260,319 Debt Service Fund
Capital Projects Funds
Frontierland
Remediation
Pacifica Library
Fund
128
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129
City of Pacifica
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
REVENUES:

Taxes 2,061,771 $ $ - $ - $ 177,989
Licenses and permits ----
Use of money and property - 50,078 23,584 11,551
Intergovernmental 225,135 - 186,159 -
Charges for services - - - 17,612
Other 26 201,432 - -
Total revenues 2,286,932 251,510 209,743 207,152
EXPENDITURES:

Current:

General Government - 339 - -
Public Safety - - 113,446 -
Community development ----
Public Works 1,432,997 - - 172,657
Parks, Beaches, and Recreation ----
Capital outlay 10,313 594,086 6,064 -
Debt service:

Principal ----
Interest and fiscal charges ----
Total expenditures 1,443,310 594,425 119,510 172,657

REVENUES OVER (UNDER)
EXPENDITURES 843,622 (342,915) 90,233 34,495
OTHER FINANCING SOURCES (USES):

Transfers in 130,000 - - -
Transfers out (1,220,100) (130,000) - (132,100)
Total other financing sources (uses) (1,090,100) (130,000) - (132,100) Net change in fund balances (246,478) (472,915) 90,233 (97,605) FUND BALANCES:

Beginning of year (143,689) 2,870,876 319,277 281,057
Restatement ----
Beginning of year, as restated (143,689) 2,870,876 319,277 281,057 End of year $ (390,167) $ 2,397,961 $ 409,510 $ 183,452 Special Revenue Funds
Gas Tax Davies Trust
Supplemental Law
Enforcement
Services NPDES Stormwater
130
$ - - $ 1,302,166 $ - $ - $ 574,066 $
- - 29,755 - - -
14,821 7,055 80,676 113,558 - 29,513
------
- - 27,041 ---
- - (52) ---
14,821 7,055 1,439,586 113,558 - 603,579
------
------
------
- - 767,842 - - 272,250
- - - 93,767 - -
------
------
------
- - 767,842 93,767 - 272,250
14,821 7,055 671,744 19,791 - 331,329
------
- - (1,183,521) ---
- - (1,183,521) - - -
14,821 7,055 (511,777) 19,791 - 331,329
250,881 119,410 1,943,399 2,010,221 372,513 292,005
------
250,881 119,410 1,943,399 2,010,221 372,513 292,005
$ 265,702 $ 126,465 $ 1,431,622 $ 2,030,012 $ 372,513 $ 623,334 Special Revenue Funds
Housing In-Lieu Parking In-Lieu
Street Construction
Fund
Parks, Beaches And
Recreation Housing Sucessor Measure W
131
City of Pacifica
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
REVENUES:

Taxes 407,320 $ - $ 1,747,869 $ 1,747,870 $
Licenses and permits ----
Use of money and property 91,247 - - -
Intergovernmental ----
Charges for services 161,806 - - -
Other - 150 88,812 -
Total revenues 150 660,373 1,836,681 1,747,870
EXPENDITURES:

Current:

General Government ----
Public Safety ----
Community development ----
Public Works 1,131,796 53,065 2,226 -
Parks, Beaches, and Recreation ----
Capital outlay - - 619,319 -
Debt service: --
Principal ----
Interest and fiscal charges ----
Total expenditures 53,065 1,131,796 621,545 -

REVENUES OVER (UNDER)
EXPENDITURES (52,915) (471,423) 1,215,136 1,747,870
OTHER FINANCING SOURCES (USES):

Transfers in 1,400,000 - - -
Transfers out - - (1,585,000) -
Total other financing sources (uses) - 1,400,000 (1,585,000) - Net change in fund balances (52,915) 928,577 (369,864) 1,747,870 FUND BALANCES:

Beginning of year 634,630 1,748 - -
Restatement - - 7,472,999 -
Beginning of year, as restated 634,630 1,748 7,472,999 - End of year $ (51,167) 1,563,207 $ 7,103,135 $ 1,747,870 $ Disaster Accounting
Special Revenue Funds
Street Improvement Tree Preservation
Housing Action
Fund
132
Special Revenue Fund
$ - - $ - $ - $ - $ - $
------
- 36,249 - 25 13,636 17,280
------
- 12,540 - - 142,833 -
- - 1,030 - - -
48,789 - 1,030 25 156,469 17,280
------
------
- - - - 127,693 -
- 28,923 - - - 2,368
------
- - 752,208 - - -
-
------
------
28,923 - 752,208 - 127,693 2,368
19,866 - (751,178) 25 28,776 14,912
------
------
- - - - - -
19,866 - (751,178) 25 28,776 14,912
- 628,642 252,053 423 215,682 294,873
------
- 628,642 252,053 423 215,682 294,873
$ 648,508 - $ (499,125) $ 448 $ 244,458 $ 309,785 $
Capital Projects Funds
Highway 1
Improvement
Manor Drive
Improvement
Aircraft Noise
Project Parks and Playfield
Planned Local
Drainage
Hotel Business
Improvement
133
City of Pacifica
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
Debt Service Fund
Total Nonmajor
Governmental
Funds
REVENUES:

Taxes $ - $ - $ - $ 8,019,051
Licenses and permits - - - 29,755
Use of money and property 3,038 7,810 819 500,940
Intergovernmental - - - 411,294
Charges for services - - - 361,832
Other - - - 291,398
Total revenues 3,038 7,810 819 9,614,270
EXPENDITURES:

Current:

General Government - - - 339
Public Safety - - - 113,446
Community development - - - 127,693
Public Works - - - 3,864,124
Parks, Beaches, and Recreation - - - 93,767
Capital outlay 26,898 - - 2,008,888
Debt service:

Principal - - 1,633,859 1,633,859
Interest and fiscal charges - - 844,171 844,171
Total expenditures 26,898 - 2,478,030 8,686,287

REVENUES OVER (UNDER)
EXPENDITURES (23,860) 7,810 (2,477,211) 927,983
OTHER FINANCING SOURCES (USES):

Transfers in - - 2,436,121 3,966,121
Transfers out - (280,000) - (4,530,721)
Total other financing sources (uses) - (280,000) 2,436,121 (564,600) Net change in fund balances (23,860) (272,190) (41,090) 363,383 FUND BALANCES:

Beginning of year 77,223 412,187 - 10,833,411
Restatement - - 2,699,165 10,172,164
Beginning of year, as restated 77,223 412,187 2,699,165 21,005,575 End of year $ 53,363 $ 139,997 $ 2,658,075 $ 21,368,958 Debt Service Fund
Frontierland
Remediation
Pacifica Library
Fund
Capital Projects Funds
134
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 2,065,900 $ 2,065,900 $ 2,061,771 $ (4,129)
Intergovernmental 180,000 150,000 225,135 75,135
Other -- 26 26
Total revenues 2,245,900 2,215,900 2,286,932 71,032
EXPENDITURES:

Current:

Public Works 522,400 702,400 1,432,997 (730,597)
Capital outlay 20,600 20,600 10,313 10,287
Total expenditures 543,000 723,000 1,443,310 (720,310)

REVENUES OVER (UNDER)
EXPENDITURES 1,702,900 1,492,900 843,622 (649,278)
OTHER FINANCING SOURCES (USES):

Transfers in - 130,000 130,000 -
Transfers out (1,220,100) (1,220,100) (1,220,100) -
Total other financing sources (uses) (1,220,100) (1,090,100) (1,090,100) - Net change in fund balances $ 482,800 $ 402,800 (246,478) $ (649,278) FUND BALANCES:

Beginning of year (143,689)
End of year $ (390,167)
Budgeted Amounts
135
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Davies Trust
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 50,078 $ 50,078
Other -- 201,432 201,432
Total revenues - - 251,510 251,510
EXPENDITURES:

Current:

General Government 300 300 339 (39)
Capital outlay 5,100 45,100 594,086 (548,986)
Total expenditures 5,400 45,400 594,425 (549,025)

REVENUES OVER (UNDER)
EXPENDITURES (5,400) (45,400) (342,915) (297,515)
OTHER FINANCING SOURCES (USES):

Transfers out (130,000) (130,000) (130,000) -
Total other financing sources (uses) (130,000) (130,000) (130,000) - Net change in fund balances $ (135,400) $ (175,400) (472,915) $ (297,515) FUND BALANCES:

Beginning of year 2,870,876
End of year $ 2,397,961
Budgeted Amounts
136
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Services
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 23,584 $ 23,584
Intergovernmental 130,000 130,000 186,159 56,159
Total revenues 130,000 130,000 209,743 79,743
EXPENDITURES:

Current:

Public Safety 68,800 68,800 113,446 (44,646)
Capital outlay 59,500 59,500 6,064 53,436
Total expenditures 128,300 128,300 119,510 8,790

REVENUES OVER (UNDER)
EXPENDITURES 1,700 1,700 90,233 88,533
Net change in fund balances $ 1,700 1,700 $ 90,233 88,533 $ FUND BALANCES:

Beginning of year 319,277
End of year $ 409,510
Budgeted Amounts
137
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual NPDES Stormwater
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 188,000 $ 188,000 $ 177,989 $ (10,011)
Use of money and property -- 11,551 11,551
Charges for services 15,000 15,000 17,612 2,612
Total revenues 203,000 203,000 207,152 4,152
EXPENDITURES:

Current:

Public Works 202,500 202,500 172,657 29,843
Total expenditures 202,500 202,500 172,657 29,843

REVENUES OVER (UNDER)
EXPENDITURES 500 500 34,495 33,995
OTHER FINANCING SOURCES (USES):

Transfers out (132,100) (132,100) (132,100) -
Total other financing sources (uses) (132,100) (132,100) (132,100) - Net change in fund balances $ (131,600) (131,600) $ (97,605) 33,995 $ FUND BALANCES:

Beginning of year 281,057
End of year $ 183,452
Budgeted Amounts
138
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing In-Lieu
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 1,665,250 $ (1,665,250) $ - $ 1,665,250
Use of money and property -- 14,821 14,821
Total revenues (1,665,250) 1,665,250 14,821 1,680,071
Net change in fund balances $ 1,665,250 $ (1,665,250) 14,821 $ 1,680,071 FUND BALANCES:

Beginning of year 250,881
End of year $ 265,702
Budgeted Amounts
139
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parking In-Lieu
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 7,055 $ 7,055
Total revenues - - 7,055 7,055
Net change in fund balances $ - $ - 7,055 $ 7,055
FUND BALANCES:

Beginning of year 119,410
End of year $ 126,465
Budgeted Amounts
140
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Construction Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 1,223,000 $ 1,223,000 $ 1,302,166 $ 79,166
Licenses and permits -- 29,755 29,755
Use of money and property -- 80,676 80,676
Charges for services 200,000 - 27,041 27,041
Other 40,000 - (52) (52)
Total revenues 1,223,000 1,463,000 1,439,586 216,586
EXPENDITURES:

Current:

Public Works 1,375,000 1,375,000 767,842 607,158
Capital outlay 5,200 5,200 - 5,200
Total expenditures 1,380,200 1,380,200 767,842 612,358

REVENUES OVER (UNDER)
EXPENDITURES 82,800 (157,200) 671,744 828,944
OTHER FINANCING SOURCES (USES):

Transfers out (1,246,700) (1,246,700) (1,183,521) 63,179 Total other financing sources (uses) (1,246,700) (1,246,700) (1,183,521) 63,179 Net change in fund balances $ (1,163,900) $ (1,403,900) (511,777) $ 892,123 FUND BALANCES:

Beginning of year 1,943,399
End of year $ 1,431,622
Budgeted Amounts
141
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parks, Beaches And Recreation
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 113,558 $ 113,558
Total revenues - - 113,558 113,558
EXPENDITURES:

Current:

Parks, Beaches, and Recreation 83,883 83,883 93,767 (9,884) Capital outlay 116,700 116,700 - 116,700
Total expenditures 200,583 200,583 93,767 106,816

REVENUES OVER (UNDER)
EXPENDITURES (200,583) (200,583) 19,791 220,374
Net change in fund balances $ (200,583) $ (200,583) 19,791 $ 220,374 FUND BALANCES:

Beginning of year 2,010,221
End of year $ 2,030,012
Budgeted Amounts
142
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Sucessor
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Net change in fund balances $ - $ - - $ -
FUND BALANCES:

Beginning of year 372,513
End of year $ 372,513
Budgeted Amounts
143
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure W
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 560,000 $ 560,000 $ 574,066 $ 14,066
Use of money and property -- 29,513 29,513
Total revenues 560,000 560,000 603,579 43,579
EXPENDITURES:

Current:

Public Works 550,000 550,000 272,250 277,750
Total expenditures 550,000 550,000 272,250 277,750

REVENUES OVER (UNDER)
EXPENDITURES 10,000 10,000 331,329 321,329
Net change in fund balances $ 10,000 $ 10,000 331,329 $ 321,329 FUND BALANCES:

Beginning of year 292,005
End of year $ 623,334
Budgeted Amounts
144
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Improvement
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 421,000 $ 421,000 $ 407,320 $ (13,680)
Use of money and property -- 91,247 91,247
Charges for services -- 161,806 161,806
Total revenues 421,000 421,000 660,373 239,373
EXPENDITURES:

Current:

Public Works 1,610,000 1,685,000 1,131,796 553,204
Total expenditures 1,610,000 1,685,000 1,131,796 553,204

REVENUES OVER (UNDER)
EXPENDITURES (1,189,000) (1,264,000) (471,423) 792,577
OTHER FINANCING SOURCES (USES):

Transfers in 1,400,000 1,400,000 1,400,000 -
Total other financing sources (uses) 1,400,000 1,400,000 1,400,000 - Net change in fund balances $ 211,000 $ 136,000 928,577 $ 792,577 FUND BALANCES:

Beginning of year 634,630
End of year $ 1,563,207
Budgeted Amounts
145
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Tree Preservation
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Other $ - - $ $ 150 $ 150
Total revenues - - 150 150
EXPENDITURES:

Current:

Public Works - - 53,065 (53,065)
Total expenditures - - 53,065 (53,065)

REVENUES OVER (UNDER)
EXPENDITURES - - (52,915) (52,915)
Net change in fund balances $ - $ - (52,915) $ (52,915) FUND BALANCES:

Beginning of year 1,748
End of year $ (51,167)
Budgeted Amounts
146
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Disaster Accounting
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 1,665,250 $ 1,665,250 $ 1,747,869 $ 82,619
Other -- 88,812 88,812
Total revenues 1,665,250 1,665,250 1,836,681 171,431
EXPENDITURES:

Current:

Public Works -- 2,226 (2,226)
Capital outlay - 496,300 619,319 (123,019)
Total expenditures 496,300 - 621,545 (125,245)

REVENUES OVER (UNDER)
EXPENDITURES 1,168,950 1,665,250 1,215,136 46,186
OTHER FINANCING SOURCES (USES):

Transfers out (1,455,000) (1,585,000) - 1,585,000
Capital contributions -- (1,585,000) (1,585,000)
Total other financing sources (uses) (1,585,000) (1,455,000) (1,585,000) - Net change in fund balances $ 210,250 $ (416,050) (369,864) $ 46,186 FUND BALANCES:

Beginning of year -
Restatement 7,472,999
Beginning of year, as restated 7,472,999
End of year $ 7,103,135
Budgeted Amounts
147
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Action Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - $ 3,330,500 $ 1,747,870 $ (1,582,630)
Total revenues - 3,330,500 1,747,870 (1,582,630)
Net change in fund balances $ - $ 3,330,500 1,747,870 $ (1,582,630) FUND BALANCES:

Beginning of year -
End of year $ 1,747,870
Budgeted Amounts
148
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Hotel Business Improvement Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Net change in fund balances $ - $ - - $ -
FUND BALANCES:

Beginning of year -
End of year $ -
Budgeted Amounts
149
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Highway 1 Improvement
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 36,249 $ 36,249
Charges for services 29,500 4,500 12,540 8,040
Total revenues 29,500 4,500 48,789 44,289
EXPENDITURES:

Current:

Public Works 33,696 33,696 28,923 4,773
Capital outlay 26,100 26,100 - 26,100
Total expenditures 59,796 59,796 28,923 30,873

REVENUES OVER (UNDER)
EXPENDITURES (30,296) (55,296) 19,866 75,162
Net change in fund balances $ (30,296) $ (55,296) 19,866 $ 75,162 FUND BALANCES:

Beginning of year 628,642
End of year $ 648,508
Budgeted Amounts
150
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Manor Drive Improvement
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Other $ 2,700,000 2,700,000 $ $ 1,030 $ (2,698,970)
Total revenues 2,700,000 2,700,000 1,030 (2,698,970)
EXPENDITURES:

Capital outlay 3,060,000 3,060,000 752,208 2,307,792
Total expenditures 3,060,000 3,060,000 752,208 2,307,792

REVENUES OVER (UNDER)
EXPENDITURES (360,000) (360,000) (751,178) (391,178)
Net change in fund balances $ (360,000) $ (360,000) (751,178) $ (391,178) FUND BALANCES:

Beginning of year 252,053
End of year $ (499,125)
Budgeted Amounts
151
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Aircraft Noise Project
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 25 $ 25
Total revenues - - 25 25
Net change in fund balances $ - $ - 25 $ 25
FUND BALANCES:

Beginning of year 423
End of year $ 448
Budgeted Amounts
152
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parks and Playfield
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 13,636 $ 13,636
Charges for services -- 142,833 142,833
Other 120,000 - - -
Total revenues 120,000 - 156,469 156,469
EXPENDITURES:

Current:

Community development - 20,400 127,693 (107,293)
Total expenditures 20,400 - 127,693 (107,293)

REVENUES OVER (UNDER)
EXPENDITURES (20,400) 120,000 28,776 49,176
Net change in fund balances $ 120,000 $ (20,400) 28,776 $ 49,176 FUND BALANCES:

Beginning of year 215,682
End of year $ 244,458
Budgeted Amounts
153
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Planned Local Drainage
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ 2,000 $ 2,000 $ 17,280 $ 15,280 Charges for services 25,000 25,000 - (25,000)
Other 450,000 - - -
Total revenues 477,000 27,000 17,280 (9,720)
EXPENDITURES:

Current:

Public Works 2,100 2,100 2,368 (268)
Total expenditures 2,100 2,100 2,368 (268)

REVENUES OVER (UNDER)
EXPENDITURES 474,900 24,900 14,912 (9,988)
Net change in fund balances $ 474,900 $ 24,900 14,912 $ (9,988) FUND BALANCES:

Beginning of year 294,873
End of year $ 309,785
Budgeted Amounts
154
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Pacifica Library Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 3,038 $ 3,038
Intergovernmental 34,000 34,000 - (34,000)
Total revenues 34,000 34,000 3,038 (30,962)
EXPENDITURES:

Capital outlay 34,700 34,700 26,898 7,802
Total expenditures 34,700 34,700 26,898 7,802

REVENUES OVER (UNDER)
EXPENDITURES (700) (700) (23,860) (23,160)
Net change in fund balances $ (700) $ (700) (23,860) $ (23,160) FUND BALANCES:

Beginning of year 77,223
End of year $ 53,363
Budgeted Amounts
155
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Frontierland Remediation
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 7,810 $ 7,810
Other 75,000 75,000 - (75,000)
Total revenues 75,000 75,000 7,810 (67,190)
OTHER FINANCING SOURCES (USES):

Transfers out (280,000) (280,000) (280,000) -
Total other financing sources (uses) (280,000) (280,000) (280,000) - Net change in fund balances $ (205,000) (205,000) $ (272,190) (67,190) $ FUND BALANCES:

Beginning of year 412,187
End of year $ 139,997
Budgeted Amounts
156
City of Pacifica
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ 500 $ 500 $ 819 $ 319
Total revenues 500 500 819 319
EXPENDITURES:

Debt service:

Principal 1,602,000 1,602,000 1,633,859 (31,859)
Interest and fiscal charges 897,800 897,800 844,171 53,629 Total expenditures 2,499,800 2,499,800 2,478,030 21,770

REVENUES OVER (UNDER)
EXPENDITURES (2,499,300) (2,499,300) (2,477,211) 22,089 OTHER FINANCING SOURCES (USES):

Transfers in 2,499,300 2,499,300 2,436,121 (63,179)
Total other financing sources (uses) 2,499,300 2,499,300 2,436,121 (63,179) Net change in fund balances $ - $ - (41,090) $ (41,090) FUND BALANCES:

Beginning of year -
Restatement 2,699,165
Beginning of year, as restated 2,699,165
End of year $ 2,658,075
Budgeted Amounts
157
City of Pacifica
Internal Service Funds
For the Year Ended June 30, 2024
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis.

Motor Pool Fund
The City operates a central garage, which provides services to various City departments on a cost reimbursement basis. Revenues for the fund are derived from rentals to the departments for usage of the equipment. The fund can be used only for the operation and replacement of the equipment.

Self Insurance Fund
The City established Self Insurance Funds to cover Employee Dental Insurance, Workers' Compensation, General Liability, Property, and Automobile Liability Insurance. Expenses are restricted to payments of claims, the premium for umbrella insurance, administration costs, and expenditures relating to the Safety Committee.

Fire Equipment Replacement Fund
The City established this fund to fund and replace fire equipment for the Fire Department. 158
City of Pacifica
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Totals
ASSETS
Current Assets:

Cash and investments 512,148 $ $ 2,169,163 $ 74,852 $ 2,756,163 Total current assets 512,148 2,169,163 74,852 2,756,163 Noncurrent:

Capital assets:

Capital assets, not being depreciated 258,774 - - 258,774 Capital assets, being depreciated 10,455,754 - - 10,455,754 Accumulated depreciation (7,999,261) -- (7,999,261)
Net capital assets 2,715,267 - - 2,715,267
Total noncurrent assets 2,715,267 - - 2,715,267
Total assets 3,227,415 2,169,163 74,852 5,471,430

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 104,939 15,737 - 120,676 Interest payable 316 - -316
Due to other funds 956,723 - - 956,723
Compensated absences - current 78,558 - - 78,558
Claims payable - current - 34,985 - 34,985
Long-term debt - current portion 19,285 - - 19,285
Total current liabilities 1,159,821 50,722 - 1,210,543
Noncurrent liabilities:

Claims payable - 139,938 - 139,938
Long-term debt 114,000 - - 114,000
Total noncurrent liabilities 114,000 139,938 - 253,938
Total liabilities 1,273,821 190,660 - 1,464,481

NET POSITION
Net investment in capital assets 2,715,267 - - 2,715,267 Unrestricted (761,673) 1,978,503 74,852 1,291,682
Total net position $ 1,953,594 $ 1,978,503 $ 74,852 $ 4,006,949 Motor Pool
Fire Equipment
Self Insurance Replacement Fund
159
City of Pacifica
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the year ended June 30, 2024
Totals
OPERATING REVENUES:

Charges for services $ 1,203,000 $ 254,510 $ - $ 1,457,510 Other operating income - 1,171,592 - 1,171,592
Total operating revenues 1,203,000 1,426,102 - 2,629,102 OPERATING EXPENSES:

Personnel services 581,628 89,172 - 670,800
Administration 32,860 - - 32,860
Supplies and materials 418,692 370 358,823 777,885
Insurance expense - 2,970,610 - 2,970,610
Outside contractors - 18,610 - 18,610
Maintenance 132,730 - - 132,730
Insurance claims - 174,845 - 174,845
Depreciation 815,064 - - 815,064
Total operating expenses 1,980,974 3,253,607 358,823 5,593,404 Operating income (loss) (777,974) (1,827,505) (358,823) (2,964,302) NONOPERATING REVENUES (EXPENSES):

Gain on sale of capital assets 212,187 - - 212,187
Interest and fiscal charges (4,188) - - (4,188)
Total nonoperating revenues (expenses) 207,999 - - 207,999 Income before contributions and transfers (569,975) (1,827,505) (358,823) (2,756,303) CONTRIBUTIONS AND TRANSFERS:

Transfers in 100,000 2,030,300 282,300 2,412,600
Total contributions and transfers 100,000 2,030,300 282,300 2,412,600 Change in net position (469,975) 202,795 (76,523) (343,703) NET POSITION:

Beginning of year 2,477,932 1,775,708 151,375 4,405,015 Restatements (54,363) - - (54,363)
Beginning of year, as restated 2,423,569 1,775,708 151,375 4,350,652 End of year $ 1,953,594 $ 1,978,503 $ 74,852 $ 4,006,949 Motor Pool Self Insurance
Fire Equipment
Replacement Fund
160
City of Pacifica
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2024
Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $ 1,426,102 1,203,000 $ - $ $ 2,629,102 Payments to suppliers (673,381) (8,218) (358,823) (1,040,422) Payments for claims - (3,273,533) - (3,273,533)
Payments to and on behalf of employees (526,782) (89,172) - (615,954) Net cash provided by (used in) operating activities 2,837 (1,944,821) (358,823) (2,300,807) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund receipts 1,056,723 2,030,300 282,300 3,369,323 Net cash provided by (used in)
noncapital financing activities 1,056,723 2,030,300 282,300 3,369,323 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Purchase of capital assets (934,588) -- (934,588)
Proceeds from sale of capital assets (602,877) -- (602,877) Principal paid on long term debt (18,050) -- (18,050)
Interest paid (4,224) -- (4,224)
Net cash provided by (used in)
capital and related financing activities (1,559,739) - - (1,559,739) Net cash provided by (used in) investing activities - - - - Net cash flows (500,179) 85,479 (76,523) (491,223)
CASH AND INVESTMENTS - Beginning of year 1,012,327 2,083,684 151,375 3,247,386 CASH AND INVESTMENTS - End of year $ 512,148 $ 2,169,163 $ 74,852 $ 2,756,163

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

Operating income (loss) $ (777,974) $ (1,827,505) $ (358,823) $ (2,964,302) Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 815,064 - - 815,064
Increase (decrease) in accounts payable (89,099) 10,762 - (78,337) Increase (decrease) in claims payable - (128,078) - (128,078) Increase (decrease) in compensated absences 54,846 - - 54,846 Net cash provided by (used in) operating activities $ 2,837 $ (1,944,821) $ (358,823) $ (2,300,807) Fire Equipment
Motor Pool Self Insurance Replacement Fund
161
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162
Financial Trends
Debt Capacity
Revenue Capacity
Demographic and Economic Information
Operating Information
Property Tax Information
Note: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for relevant years.

City of Pacifica
Statistical Section
For the Year Ended June 30, 2024
This part of the City's Annual Comprehensive 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.

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

These schedules contain information to help the reader assess the City's most significant local revenue sources.

These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

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

These schedules contain information to help the reader assess the City's property tax sources and changes. 163

CITY OF PACIFICA
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018
Governmental activities
Net investment in capital assets $ 56,431,400 $ 56,878,228 $ 56,601,988 $ 59,589,114 Restricted 11,517,455 13,808,573 17,256,904 16,314,865
Unrestricted (46,030,272) (39,126,535) (37,204,436) (40,387,356) Total governmental activities net position 21,918,583 31,560,266 36,654,456 35,516,623 Business-type activities
Net investments in capital assets 15,266,626 15,985,969 15,985,969 15,985,969 Unrestricted 9,163,991 9,672,252 9,812,211 8,612,543
Total business-type activities net position 24,430,617 25,658,221 25,798,180 24,598,512 Primary government
Net investment in capital assets 71,698,026 72,864,197 72,587,957 75,575,083 Restricted 11,517,455 13,808,573 17,256,904 16,314,865
Unrestricted (36,866,281) (29,454,283) (27,392,225) (31,774,813) Total primary government net position $ 46,349,200 $ 57,218,487 $ 62,452,636 $ 60,115,135 164
2019 2020 2021 2022 2023 2024
$ 67,691,252 $ 85,689,643 $ 71,472,901 $ 69,492,549 $ 78,197,042 $ 86,677,910 12,119,087 16,166,941 17,244,941 23,043,731 21,039,910 22,301,389 (33,917,809) (52,525,473) (42,880,812) (39,248,843) (27,609,394) (38,227,130) 45,892,530 49,331,111 45,837,030 53,287,437 71,627,558 70,752,169 15,985,969 13,000,844 25,086,051 26,098,298 34,304,949 37,586,813 9,935,338 11,042,102 2,469,140 4,984,562 (1,078,255) (2,853,625) 25,921,307 24,042,946 27,555,191 31,082,860 33,226,694 34,733,188 83,677,221 98,690,487 96,558,952 95,590,847 112,501,991 124,264,723 12,119,087 16,166,941 17,244,941 23,043,731 21,039,910 22,301,389 (23,982,471) (41,483,371) (40,411,672) (34,264,281) (28,687,649) (41,080,755) $ 71,813,837 $ 73,374,057 $ 73,392,221 $ 84,370,297 $ 104,854,252 $ 105,485,357 165

CITY OF PACIFICA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018
Expenses
Governmental activities:

General government $ 4,324,645 $ 4,604,299 $ 5,196,272 $ 7,156,065 Public safety 13,997,209 15,859,890 14,310,434 17,194,894 Community Development 1,089,881 1,629,555 1,964,355 2,329,479 Public Works 5,757,332 4,714,402 5,698,841 7,409,411
Parks, Beaches & Recreation 3,894,017 4,329,044 4,938,859 4,963,552 Interest on Long-term Debt 2,072,272 1,667,485 2,442,966 1,896,665 Total Governmental Activities Expenses 31,135,356 32,804,675 34,551,727 40,950,066 Business-type activities:

Sewer 11,897,495 10,816,732 11,893,663 12,922,459
Beach Parking 515,915 532,102 502,373 562,426
Total Business-Type Activities Expenses 12,413,410 11,348,834 12,396,036 13,484,885 Total Primary Government Expenses 43,548,766 44,153,509 46,947,763 54,434,951 Program Revenues
Governmental activities:

Charges for services:

General Government 29,769 126,156 74,899 109,145
Public Safety 938,379 1,043,155 987,163 1,141,995
Community Development 1,922,976 3,638,027 2,333,796 2,216,407 Public Works 743,700 786,000 743,700 743,700
Parks, Beaches & Recreation 2,107,720 2,220,263 2,231,797 2,486,816 Operating Grants and Contributions 4,321,012 3,923,126 4,124,499 3,541,903 Capital Grants and Contributions 4,709,960 4,912,145 2,458,959 3,759,417 Total Governmental Activities Program Revenues 14,773,516 16,648,872 12,954,813 13,999,383 Business-Type Activities:

Charges for services:

Sewer 13,721,346 12,959,708 12,715,024 13,761,816
Beach Parking 537,192 533,952 493,850 543,919
Total Business-Type Activities Program Revenues 14,258,538 13,493,660 13,208,874 14,305,735 Total Primary Government Program Revenues 29,032,054 30,142,532 26,163,687 28,305,118 Net Revenues (Expenses)
Governmental activities (16,361,840) (16,155,803) (21,596,914) (26,950,683) Business-type activities 1,845,128 2,144,826 812,838 820,850 Total Net Revenues (Expenses) (14,516,712) (14,010,977) (20,784,076) (26,129,833) General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property taxes 12,200,335 12,445,509 12,679,059 13,780,294 Sales Taxes 1,754,568 1,983,930 2,374,505 2,350,478
Franchise Tax 1,697,972 1,736,620 1,748,266 1,722,343
Other Taxes 3,529,485 3,710,615 3,749,159 4,904,111
Motor vehicle in lieu - unrestricted 3,320,316 3,543,953 3,731,337 3,973,622 Investment earnings 29,979 (44,457) 743,630 151,887
Gain on sale of captal assets - - - -
Miscellaneous 259,197 1,481,757 846,648 505,076
Transfers (150) 939,559 818,500 98,343
Total Governmental Activities 22,791,702 25,797,486 26,691,104 27,486,154 Business-type activities:

Investment Earnings 16,123 22,337 145,621 442,917
Miscellaneous - - - 204,939
Transfers 150 (939,559) (818,500) (98,343)
Total Business-Type Activities 16,273 (917,222) (672,879) 549,513 Total Primary Government 22,807,975 24,880,264 26,018,225 28,035,667 Changes in Net Position:

Governmental Activities 6,429,862 9,641,683 5,094,190 535,471 Business-type Activities 1,861,401 1,227,604 139,959 1,370,363 Total Primary Government $ 8,291,263 $ 10,869,287 $ 5,234,149 $ 1,905,834 166
2019 2020 2021 2022 2023 2024
$ 5,709,625 $ 6,334,939 $ 7,118,502 $ 7,481,370 $ 8,606,518 $ 9,174,410 18,784,090 18,649,308 21,096,292 18,632,393 17,048,970 22,844,505 2,731,034 2,984,755 2,972,473 3,243,238 3,184,443 3,952,730 2,534,274 6,980,889 7,713,891 9,326,203 9,052,066 12,285,498 5,392,377 5,586,758 5,441,842 4,928,418 5,418,584 6,479,952 706,918 1,364,573 961,257 969,550 959,687 785,665
35,858,318 41,901,222 45,304,257 44,581,172 44,270,268 55,522,760 14,927,925 18,794,726 12,884,968 16,258,603 17,983,716 18,317,572 536,423 468,537 715,783 620,511 545,599 613,116
15,464,348 19,263,263 13,600,751 16,879,114 18,529,315 18,930,688 51,322,666 61,164,485 58,905,008 61,460,286 62,799,583 74,453,448 77,871 108,746 86,009 135,929 151,145 434,405
852,591 788,489 844,530 773,713 857,381 868,883
2,318,892 2,100,634 2,673,577 2,520,754 2,463,602 2,225,969 804,110 795,505 892,456 1,059,275 1,237,884 1,322,542
2,588,014 1,902,841 831,914 1,859,921 2,672,621 2,652,638 3,853,971 2,892,136 3,491,531 8,598,184 9,802,306 4,374,512 4,606,092 5,683,998 2,305,188 2,374,222 2,179,965 2,524,729 15,101,541 14,272,349 11,125,205 17,321,998 19,364,904 14,403,678 14,802,705 16,591,415 15,760,525 18,965,244 20,158,923 18,575,262 675,689 485,883 822,510 559,195 455,028 467,587
15,478,394 17,077,298 16,583,035 19,524,439 20,613,951 19,042,849 30,579,935 31,349,647 27,708,240 36,846,437 39,978,855 33,446,527 (20,756,777) (27,628,873) (34,179,052) (27,259,174) (24,905,364) (41,119,082) 14,046 (2,185,965) 2,982,284 2,645,325 2,084,636 112,161 (20,742,731) (29,814,838) (31,196,768) (24,613,849) (22,820,728) (41,006,921) 14,731,311 13,030,713 15,087,028 14,445,541 15,983,214 19,777,305 2,611,801 2,570,334 2,848,681 3,136,433 3,877,828 5,766,170 1,661,717 1,647,467 1,706,107 1,754,500 1,197,067 1,732,040 5,340,307 8,572,837 9,026,832 10,385,735 14,868,245 9,125,779 4,199,391 4,253,924 2,643,981 4,355,327 5,870,043 3,823,616 254,481 341,064 9,364 100,562 659,790 1,481,727
- - - - 9,310 212,187
2,384,463 571,114 204,939 324,910 279,988 630,969
272,500 80,000 (250,000) 499,600 500,000 978,700
31,455,971 31,067,453 31,276,932 35,002,608 43,245,485 43,528,493 415,825 387,604 296,784 286,486 559,198 1,815,111
- - - - - -
(272,500) (80,000) 250,000 (499,600) (500,000) (978,700) 143,325 307,604 546,784 (213,114) 59,198 836,411
31,599,296 31,375,057 31,823,716 34,789,494 43,304,683 44,364,904 10,699,194 3,438,580 (2,902,120) 7,743,434 18,340,121 2,409,411 157,371 (1,878,361) 3,529,068 2,432,211 2,143,834 948,572 $ 10,856,565 $ 1,560,219 $ 626,948 $ 10,175,645 $ 20,483,955 $ 3,357,983 167

CITY OF PACIFICA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2015 2016 2017 2018
General Fund
Non Spendable $ 3,996,158 $ 3,947,951 $ 4,021,024 $ 4,003,847 Committed - - -
Assigned 904,240 904,240 904,240 1,407,541
Unassigned 1,893,507 4,960,039 5,404,857 7,142,843
Total General Fund 6,793,905 9,812,230 10,330,121 12,554,231 All Other Governmental Funds:

Non Spendable
Restricted 11,503,439 13,808,573 17,256,904 18,219,942
Committed - - - -
Assigned 14,016 - - -
Unassigned (1,312,645) (2,410,718) (3,518,187) (6,077,744) Total All Other Governmental Funds 10,204,810 11,397,855 13,738,717 12,142,198 Total Governmental Funds $ 16,998,715 $ 21,210,085 $ 24,068,838 $ 24,696,429 168
2019 2020 2021 2022 2023 2024
$3,911,023 $ 3,783,486 $ 3,864,704 $ 3,768,557 3,528,523 8,287 - - 200,755 342,510 185,519 375,291
3,499,121 4,693,187 4,441,015 4,803,631 5,777,214 5,728,467 7,548,938 8,026,175 7,994,899 7,377,526 11,056,214 12,628,405 14,959,082 16,502,848 16,501,373 16,292,224 20,547,470 18,740,450 89,400
11,784,231 19,732,457 20,533,315 29,424,185 24,995,596 22,301,389 - - - - - -
4,803,631 - - - 1,380,849 4,140,951
1,943,978 - (188,655) (619,786) (143,689) (4,631,509)
18,531,840 19,732,457 20,344,660 28,804,399 26,322,156 21,810,831 $ 33,490,922 $ 36,235,305 $ 36,846,033 $ 45,096,623 46,869,626 40,551,281 169

CITY OF PACIFICA
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(in thousands)
2015 2016 2017 2018
Revenues
Taxes 21,216 $ 22,294 $ 22,411 $ 23,768 $
683 827 812 1,036
Fines and forfeitures 153 150 161 190
Use of money and property 459 1,663 980 311
Intergovernmental revenues 8,567 7,439 6,605 7,637
Charges for Services 2,219 2,829 2,722 2,778
Recreation Programs 897 898 845 989
Other Revenues 4,163 3,690 4,283 4,662
Total Revenues: 38,357 39,790 38,819 41,371
Expenditures
Current:
3,899 4,332 4,538 4,444
14,199 14,555 15,452 16,192
1,318 1,814 1,907 2,110
4,259 3,707 4,597 4,041
3,988 4,333 4,419 4,158
Capital outlay 3,077 3,393 1,952 6,701
Debt service:
1,918 2,046 1,667 971
1,777 1,686 1,957 1,335
Bond issuance cost - - 293 -
Total Expenditures 34,435 35,866 36,782 39,952
Excess (deficiency) of revenues
over (under) expenditures 3,922 3,924 2,037 1,419
Other Financing Sources (Uses)
Transfers in 1,924 2,614 6,191 2,412
Transfers out (2,304) (2,327) (5,665) (3,203)
Refunded to debt escrow agent - - (16,794) -
Issuance of Debt - - 17,092 -
Total other financing sources (uses) (380) 287 824 (791) Net change in fund balances $ 3,542 $ 4,211 $ 2,861 $ 628 Debt service as a percentage of
noncapital expenditures 11.5% 11.4% 11.1% 6.50%
Principal retirement
Interest and Other Chares
Licenses and permits
General government
Public safety
Community Development
Public Works
Parks, Beaches & Recreation
170
2019 2020 2021 2022 2023 2024
$ 25,847 $ 27,399 $ 30,227 $ 31,398 $ 37,731 $ 38,422
838 969 1,197 1,079 1,107 1,477
193 182 174 168 198 125
386 338 103 224 746 1,655
6,672 8,312 5,102 11,223 12,552 8,079
2,899 2,358 3,588 3,700 3,378 3,228
904 495 373 456 688 715
8,510 5,411 1,880 3,577 4,975 2,978
46,249 45,464 42,644 51,825 61,375 56,679
5,160 5,628 6,094 7,243 9,131 7,007
16,621 16,352 17,165 18,658 19,959 20,228
2,442 2,579 2,432 3,073 3,463 3,639
4,622 5,917 6,841 8,143 7,818 8,717
4,792 4,886 4,433 4,811 5,838 5,921
5,603 1,585 2,535 3,163 10,700 9,910
1,017 111 611 1,597 1,547 1,634
1,339 1,272 941 947 912 844
- 212 - - - -
41,596 38,542 41,052 47,635 59,368 57,900
4,653 6,922 1,592 4,190 2,007 (1,221)
13,059 3,451 3,821 8,292 11,445 7,811
(13,721) (3,341) (4,211) (7,938) (11,678) (9,245)
- 8,436 - - - -
- (7,920) - 4,000 - -
(662) 626 (390) 4,354 (233) (1,434)
$ 3,991 $ 7,548 $ 1,202 $ 8,544 $ 1,773 $ (2,656)

7.4% 3.9% 4.2% 5.8% 5.0% 5.1%
171

CITY OF PACIFICA

TAXABLE SALES BY CATEGORY
LAST TEN YEARS (IN $000's)
Annual Years
Categories 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Food Stores 23,722 $ 23,543 $ 24,727 $ 27,139 $ 27,696 $ 28,115 $ 30,462 $ 27,471 $ 28,765 $ 28,662 $ Eating & Drinking Places 45,750 49,770 50,616 53,219 56,013 60,071 45,853 63,241 73,506 73,468 Building Materials 3,795 3,933 3,839 4,173 3,900 4,210 5,955 5,544 5,163 5,333 Auto Dealers & Supplies 4,646 4,482 4,532 4,804 4,778 5,134 4,728 4,758 5,131 5,209 Service Stations 52,412 44,660 38,899 42,139 46,839 44,942 29,641 39,074 49,439 44,525 Other Retail Stores 38,653 39,861 42,987 43,499 44,111 45,830 52,880 56,624 65,325 63,595 All Other Outlets 40,072 40,297 48,841 50,643 55,023 61,978 75,620 77,040 83,374 80,198 Total 209,050 $ 206,546 $ 214,441$ 225,616 $ 238,360 $ 250,280 $ 245,139 $ 273,752 $ 310,703 $ 300,990 $ Notes:

Due to confidentiality issues, the names of the ten largest revenue payers are not available.

The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

Source: HdL ACFR report
172

CITY OF PACIFICA

DIRECT AND OVERLAPPING SALES TAX RATES

LAST TEN YEARS
City San Mateo City/County
State Direct County Public District
Fiscal Year End Rate Rate Rate Safety Rate Total
2015 6.00% 0.75% 1.750% 0.50% 0.00% 9.000%
2016 6.00% 0.75% 1.750% 0.50% 0.00% 9.000%
2017 5.75% 0.75% 1.750% 0.50% 0.00% 8.750%
2018 5.75% 0.75% 1.750% 0.50% 0.00% 8.750%
2019 6.00% 0.75% 2.000% 0.50% 0.00% 9.250%
2020 6.00% 0.75% 2.000% 0.50% 0.00% 9.250%
2021 6.00% 0.75% 2.125% 0.50% 0.00% 9.375%
2022 6.00% 0.75% 2.125% 0.50% 0.00% 9.375%
2023 6.00% 0.75% 2.125% 0.50% 0.50% 9.875%
2024 6.00% 0.75% 2.125% 0.50% 0.50% 9.875%
Notes:

Proposition 172 approved by the voters in 1993 provides 1/2 cent sales tax for Public Safety Augmentation.

San Mateo County Transportation Authority District is provided a 1/2 cent sales tax approved by the voters in 1989.

San Mateo County Transit District is provided a 1/2 cent sales tax approved by the voters in 1982.

Voters approved a San Mateo County Transactions and Use Tax of a 1/2 cent effective in 2013.

Voters approved half a cent for Meaure Y effective 4/1/2023 Source: State Board of Equalization & HdL Companies
Voters approved a San Mateo County Transit District Transactions and Use Tax of a 1/2 cent effective in 2019 for traffic congestion and transportation purposes.

Voters approved Measure RR which authorized an additional sales tax of 0.125 percent in San Francisco, Santa Clara and San Mateo counties for the next 30 years.
173

CITY OF PACIFICA

REVENUES BY SOURCE (GOVERNMENTAL FUNDS)

LAST TEN FISCAL YEARS
Fiscal Licenses Fines & Use of Money Inter- Current Other Year Taxes & Permits Forfeitures & Property Governmental Service Chgs. Revenues TOTAL 2014-2015 21,215,649 $ 683,517 $ 153,031 $ 458,823 $ 8,567,028 $ 2,219,356 $ 5,059,783 $ 38,357,187 $ 2015-2016 22,294,417 827,154 149,573 1,663,159 7,439,425 2,828,678 4,588,311 39,790,717 2016-2017 22,411,007 811,803 161,023 980,024 6,604,617 2,722,206 5,037,010 38,727,690 2017-2018 23,767,659 1,035,782 190,202 311,425 7,636,773 2,778,648 5,650,674 41,371,163 2018-2019 25,847,343 837,785 193,046 386,289 6,671,627 2,899,101 9,414,628 46,249,819 2019-2020 27,398,902 968,574 181,883 337,889 8,311,834 2,338,945 5,906,254 45,444,281 2020-2021 30,226,812 1,197,277 174,048 103,437 5,101,845 3,581,214 2,253,219 42,637,852 2021-2022 31,398,335 1,079,376 167,612 223,936 11,222,559 3,700,266 4,032,922 51,825,006 2022-2023 37,730,682 1,106,812 197,653 746,021 12,552,438 3,377,556 5,662,736 61,373,898 2023-2024 38,422,009 1,477,127 125,418 1,654,572 8,078,622 3,228,296 3,692,834 56,678,878 % Change
2015-2024 81.10% 116.11% -18.04% 260.61% -5.70% 45.46% -27.02% 47.77% Notes:

Above amounts include General Fund, Special Revenue Funds, Debt Service Fund, Capital Projects Funds, and Other Governmental Funds..

Above amounts exclude other financing sources.

Source: Governmental Funds Financial Statement
174

CITY OF PACIFICA, CALIFORNIA

ASSESSED VALUATION, TAX RATE, AND TAX LEVIES
(IN $000's)

LAST TEN FISCAL YEARS

LOCALLY ASSESSED TOTALS
Secured Unsecured Total Before Exemptions
Fiscal Land Personal Land Personal Land Personal Grand (1) Total Net Subject Year Value Improvements Property Value Improvements Property Value Improvements Property Total H.O.P.T.R. Other Exemptions To Tax 2014-2015 2,294,249 $ 2,647,779 $ 2,352 $ 5,041 $ 21,781 $ 22,507 $ 2,299,290 $ 2,669,560 $ 24,859 $ 4,993,709 $ 56,151 $ 61,142 $ 117,293 $ 4,876,416 $ 2015-2016 2,460,040 2,815,658 2,172 4,108 22,270 31,051 2,464,148 2,837,928 33,223 5,335,299 55,523 65,832 121,355 5,213,944 2016-2017 2,622,536 2,952,932 2,132 4,041 18,948 21,509 2,626,577 2,971,880 23,641 5,622,098 54,992 52,206 107,198 5,514,900 2017-2018 2,836,115 3,100,809 2,089 4,385 14,214 21,638 2,840,500 3,115,023 23,727 5,979,250 54,419 56,353 110,772 5,868,478 2018-2019 3,056,112 3,236,212 3,449 4,302 13,229 22,588 3,060,414 3,249,441 26,037 6,335,892 54,076 78,225 132,301 6,203,591 2019-2020 3,274,914 3,403,678 2,674 3,932 12,192 23,895 3,278,846 3,415,870 26,569 6,721,285 53,476 86,187 139,663 6,581,622 2020-2021 3,483,408 3,545,422 2,535 3,316 5,892 21,984 3,486,724 3,551,314 24,519 7,062,557 52,896 87,151 140,047 6,922,510 2021-2022 3,648,251 3,683,261 2,820 2,867 4,852 20,784 3,651,118 3,688,113 23,604 7,362,835 52,787 90,023 142,810 7,220,025 2022-2023 3,924,190 3,911,598 4,409 2,697 4,647 30,208 3,926,887 3,916,245 34,617 7,877,749 52,194 39,424 91,618 7,786,131 2023-2024 4,188,657 4,097,133 6,477 3,201 4,260 34,173 4,191,858 4,101,393 40,650 8,333,901 51,442 100,307 151,749 8,182,152 % Change
2015-2024 82.57% 54.74% 175.38% -36.50% -80.44% 51.83% 82.31% 53.64% 63.52% 66.89% -8.39% 64.06% 29.38% 67.79% (1) Homeowner's Property Tax Relief
Notes:
* California property tax assessments are "acquisition" based, rather than cyclical based. In California, the property tax system is acquisition based, meaning that a real property is assessed upon acquisition or when newly constructed, and assessed at a ratio of 100% of fair market value as of the event date. After the acquisition or new construction basis is determined, year to year increases in assessed value are limited to no more than 2%. In the event of an economic downturn, real property is assessed at the lower of its acquisition basis, increased by the maximum of 2% per year or the fair market value as of January 2, whichever is lower.

Source: HdL report from San Mateo County Assessor 2023/24 Combined Tax Rolls.

Exemptions/Net Totals
175

CITY OF PACIFICA

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
Jefferson San Mateo
San Mateo Pacifica High School Junior Total Direct Total County Elementary & Elementary College & Overlapping Direct Fiscal Year End as Distributor School School Districts & High School Tax Rates Rate 2015 1.0000% 0.0392% 0.1192% 0.0190% 1.1774% 0.1934%
2016 1.0000% 0.0250% 0.1257% 0.0250% 1.1757% 0.1934%
2017 1.0000% 0.0311% 0.1480% 0.0247% 1.2038% 0.1934%
2018 1.0000% 0.0281% 0.1479% 0.0235% 1.1995% 0.1935%
2019 1.0000% 0.0517% 0.1302% 0.0175% 1.1994% 0.1935%
2020 1.0000% 0.0505% 0.1478% 0.0266% 1.2249% 0.1936%
2021 1.0000% 0.0415% 0.1609% 0.0213% 1.2237% 0.1936%
2022 1.0000% 0.0288% 0.1253% 0.0227% 1.1768% 0.1937%
2023 1.0000% 0.0250% 0.1236% 0.0193% 1.1679% 0.1937%
2024 1.0000% 0.0570% 0.1429% 0.0190% 1.2189% 0.1937%
Notes:

Under constitutional Amendment (Proposition 13) passed by voters in the State of California in June 1978, the tax rate (excluding bonded debt) is frozen at 1% of the full market value of property. This tax is collected by the County Tax Collector and distributed on a formula determined by the State Legislature.

Local agencies levy the tax rate only for general obligation bonds, or in excess of 1% if two-thirds of the voters in the area authorize such a rate increase.

All tax levies include Homeowner's Property Tax Relief and Business Inventory Property Tax Relief.

Source: HdL Companies
School District
176

CITY OF PACIFICA

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND TEN YEARS AGO
(in $000's)
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Assessed Taxable Assessed
Taxpayer Value Rank Value Value Rank Value
FPA WD LANDS END LLC 95,596 $ 1 1.17%
GRI FAIRMONT LLC 41,259 2 0.51%
AIMCO ESPLANADE AVENUE APARTMENT 40,565 3 0.50% 50,462 $ 1 1.07% LINDA MAR SHOPPING CENTER, LLP 40,413 4 0.50% 32,905 3 0.70% PACIFICA HORIZONS WEST LP 39,305 5 0.48%
CRP/PSE SEASIDE PACIFICA OWNER 27,761 6 0.34%
750 ODDSTAD LP 25,500 7 0.31%
NVI RANI INC 22,663 8 0.28%
2400 SKYLINE BLVD LLC 19,115 9 0.23%
BAY APARTMENT COMMUNITIES, INC. 16,619 10 0.20% 14,064 7 0.30% FPA BAF LANDS END ASSOCIATES LP 47,656 2 1.01%
PK III FAIRMONT SHOPPPING CENTER 28,568 4 0.61%
MARYMOUNT SUMMIT ,LLC 19,143 5 0.41%
HARRY B. LEWIS, ET AL 14,833 6 0.32%
LBN PROPERTIES LP 13,403 8 0.29%
COMCAST OF CALIFORNIA IX INC. 10,863 10 0.23%

LINDAMAR SC LP

KIEWIT INFRASTRUCTURE WEST COMPANY
PACIFICA VIEW APARTMENTS LP 11,526 9 0.25%
Total 368,796 $ 4.52% 243,423 $ 5.19%
Notes:

This schedule serves a dual purpose of providing basic information about our jurisdiction's most significant revenue payers and highlighting the degree to which a government is dependent on a small number of payers.

Source: HdL Companies
2023/24 2014/15
177

CITY OF PACIFICA

PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS (IN $000's)
Fiscal Year Taxes Levied Collections
Ending for the Percentage of in subsequent Percentage
June 30 Fiscal Year Amount Levy Years Amount of Levy
2015 9,516 $ 9,516 $ 100.00% - $ 9,516 $ 100.00%
2016 10,090 10,090 100.00% 0 10,090 100.00%
2017 10,728 10,728 100.00% 0 10,728 100.00%
2018 12,097 12,097 100.00% 0 12,097 100.00%
2019 12,782 12,782 100.00% 0 12,782 100.00%
2020 13,442 13,442 100.00% 0 13,442 100.00%
2021 13,993 13,993 100.00% 0 13,993 100.00%
2022 14,567 14,567 100.00% 0 14,567 100.00%
2023 14,819 14,819 100.00% 0 14,819 100.00%
2024 15,707 15,707 100.00% 0 15,707 100.00%
% Change 2015-2024 65% 65% 65%
Notes:

This Statement shows the period for which the tax is levied.

Includes Homeowner's Tax Relief (HOPTR).

Under constitutional Amendment (Proposition 13) passed by voters in the State of California in June 1978, the tax rate (excluding bonded debt) is frozen at 1% of the full market value of property. This tax is collected by the County Tax Collector and distributed on a formula determined by the State Legislature. Local agencies levy the tax rate only for general obligation bonds, or in excess of 1% if two-thirds of the voters in the area authorize such a rate increase. All tax levies include Homeowner's Property Tax Relief and Business Inventory Property Tax Relief.

Sources: Office of the Controller, County of San Mateo
Fiscal Year of the Levy
Collected within the
Total Collections to Date
178

CITY OF PACIFICA

OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Total
Fiscal Pension Certificates Governmental
Year Obligation Financed Notes of Activities
Ending Bond Purchase Payable Participation Debt
2015 $ 12,712,826 $ 918,514 $ 875,378 $ 16,740,000 $ 31,246,718 2016 11,303,736 811,224 - 16,210,000 28,324,960
2017 9,748,420 699,600 - 16,977,583 27,425,603
2018 8,893,219 583,466 - 16,862,704 26,339,389
2019 7,936,101 462,641 - 16,747,825 25,146,567
2020 8,583,041 336,934 - 16,632,946 25,552,921
2021 8,583,041 208,149 - 16,038,067 24,829,257
2022 7,847,478 4,070,080 - 15,198,188 27,115,746
2023 7,058,742 4,000,000 - 14,378,309 25,437,051
2024 6,216,833 3,950,000 - 13,503,430 23,670,263
Sources: City's Annual Comprehensive Financial Reports 2015-2024 Governmental Activities
179

CITY OF PACIFICA

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Total Total Debt Per Capita Debt as a
Fiscal Year Sewer Pension Notes Business-Type Primary Per Personal Percentage of Ending Revenue Bonds Obligation Bond Payable Government Government Population Capita Income Personal Income 2015 9,736,334 $ 20,375,644 $ 30,111,978 $ 61,358,696 $ 38,315 $ 1,601 $ 43,390 $ 0.071% 2016 9,436,801 18,070,515 27,507,316 55,832,276 37,806 1,477 45,452 0.081% 2017 35,297,847 15,756,776 51,054,623 78,480,226 38,124 2,059 45,591 0.058% 2018 34,886,481 13,434,113 48,320,594 74,659,983 38,418 1,943 46,553 0.062% 2019 33,462,902 1,018,900 11,102,206 45,584,008 70,730,575 38,674 1,829 48,476 0.069% 2020 33,181,108 1,101,959 8,760,726 43,043,793 68,596,714 38,331 1,790 51,799 0.076% 2021 32,899,310 1,101,959 6,409,326 40,410,595 65,237,852 37,890 1,722 54,637 0.084% 2022 32,617,513 1,007,522 4,047,649 37,672,684 64,833,230 37,533 1,727 55,679 0.086% 2023 30,248,141 906,258 24,741,239 55,895,638 81,332,689 37,082 2,193 60,732 0.075% 2024 27,722,620 798,167 24,053,107 52,573,894 76,244,157 37,062 2,057 68,300 0.090% Sources: The City's Annual Comprehensive Financial Reports Business-Type Activities
180

CITY OF PACIFICA

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2024
$8,182,152,216
Debt Outstanding
6/30/24
%
Applicable
(1)
City Share of
Debt 06/30/24
Overlapping Tax and Assessment Debt:

San Mateo Community College District $ 682,237,216 2.658% $ 18,133,865 Jefferson Union High School District 338,312,020 28.209% 95,434,438 Jefferson School District 137,920,000 1.229% 1,695,037
Pacifica Elementary School District (Laguna Salada) 40,705,604 99.886% 40,659,200 Total Overlapping Tax and Assessment Debt $ 155,922,540 Direct and Overlappig General Fund Debt:

San Mateo County General Fund Obligations $ 554,571,645 2.658% $ 14,740,514 San Mateo County Board of Education Certificates of Participation 5,735,000 2.658% 152,436 San Mateo County Flood Control and Sea LRR District General Fund Obligations 13,065,000 0.538% 70,290 Jefferson Union High School District Certificates of Participation 46,845,000 28.209% 13,214,506 City of Pacifica Certificates of Participation 13,503,430 100.000% 13,503,430 2021 Civic Center Financed Purchase 3,950,000 100.000% 3,950,000 City of Pacifica Pension Obligation Bonds 6,216,833 100.000% 6,216,833 San Mateo County Mosquito and Vector Control District General Fund Obligations 3,404,654 2.658% 90,496 Total Direct and Overlapping General Fund Debt $ 51,938,505 Overlapping Tax Increment Debt (Successor Agency): $ 795,000 100.000% $ 795,000 Total Direct Debt $ 23,670,263
Total Overlapping Debt $ 184,985,782
Combined Total Direct and Overlapping Debt $ 208,656,045 (2) (1) Percentage of overrlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by detrmining the prortion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgate revenue and non-bonded financial lease obligations.

Total Overlapping Tax and Assessment Debt ……………………............. 1.91% Total Direct Debt ($23,670,263)) ……………………………………............. 0.29% Combined Total Debt …………………………………………………........... 2.55% Ratio to Redevelopment Successor Agency Incremental Valuation ($66,421,070.00):

Total Overlapping Tax Increment Debt …………………………… 1.20%
Source: Calmuni
Ratios to 2023-2024 Assessed Valuation:

FY2023-24 Assessed Valuation:
181

CITY OF PACIFICA

LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS (IN $000's)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Assessed Valuation 4,932,568 $ 5,269,468 $ 5,569,870 $ 5,934,385 $ 6,271,558 $ 6,646,497 $ 6,986,484 $ 7,282,869 $ 7,786,131 $ $8,182,152 Debt Limit 184,971 197,605 208,870 222,539 235,183 249,244 261,993 273,108 291,980 306,831 Total Net Debt
Applicable to Limit 31,247 28,325 27,426 26,339 25,147 25,553 24,829 27,116 25,437 23,670 Legal Debt Margin 153,724 169,280 181,444 196,200 210,036 223,691 237,164 245,992 266,543 283,160 Total Net Debt
applicable to the limit
as a percentage of
debt limit 16.89% 14.33% 13.13% 11.84% 10.69% 10.25% 9.48% 9.93% 8.71% 7.71% Notes:

Debt Limit is 3.75% of Assessed Value.

Source: City of Pacifica and San Mateo County Assessor's records 182

CITY OF PACIFICA

WASTEWATER OBLIGATIONS PLEDGED REVENUE COVERAGE
LAST TEN YEARS (IN $000's)
(1) (2) (3) (4)
Less Pledged
Operating Operating Net Bonded Debt Other Parity Total Parity Fiscal Year Revenues Expenses Revenue Service Debt Service Debt Service Coverage 2015 13,721 7,663 6,058 359 2,514 2,873 2.11
2016 12,960 7,851 5,109 337 2,514 2,851 1.79
2017 12,715 8,444 4,271 1,163 2,514 3,677 1.16
2018 13,762 8,660 5,102 1,399 2,513 3,912 1.30
2019 14,803 10,233 4,570 1,399 2,513 3,912 1.17
2020 16,591 10,219 6,372 1,399 2,513 3,912 1.63
2021 15,761 10,377 5,384 1,399 2,513 3,912 1.38
2022 18,618 10,535 8,083 1,399 2,513 3,912 2.07
2023 20,159 11,630 8,529 3,490 446 3,936 2.17
2024 18,575 11,753 6,822 3,025 419 3,444 1.98
Notes:
(1) Operating Expenses excludes depreciation, capital expenditures and debt service (2) Include the Series 2014 and the Series 2017 Wastewater Revenue Refunding Bonds (3) Includes the CSCDA 2012 Loan. State of CA water resources were paid off in FY22 Debt service on the Ibank loan begins in FY2024.
(4) The bond indentures and the 2012 Loan Agreement require minimum annual debt service coverage of 1.25x.

Source: City Financial Reports
Enterprise Fund Bonds
183

CITY OF PACIFICA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
Per
Calendar Median Capita
Year Personal Personal Unemployment
Ending Population Income Income Rate %
2015 38,315 n/a 43,390 3.9
2016 37,806 n/a 45,452 3.1
2017 38,124 n/a 45,591 2.8
2018 38,418 n/a 46,553 2.0
2019 38,674 n/a 48,476 2.3
2020 38,331 n/a 51,799 2.1
2021 37,890 n/a 54,637 7.3
2022 37,533 n/a 55,679 5.1
2023 37,082 n/a 60,732 2.6
2024 37,062 n/a 68,300 3.1
Source: HdL Companies via U.S. Census Bureau, California State Department of Finance and California Employment Development Department
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CITY OF PACIFICA

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS PRIOR
Employers Employees Rank Employment Employees Rank Employment Pacifica School District 377 1 1.63% 375 2 1.69%
City of Pacifica 254 2 1.10% 224 4 1.01%
Safeway (3) 215 3 0.93% 262 3 1.18%
Pacific Bay Christian School 174 4 0.75%
Little Giant Building Maintenance, Inc. 170 5 0.74%
Jefferson Union High School District 107 6 0.46% 489 1 2.20% Fashion Apparel Service Transportation Inc. 105 7 0.45% Real Food Company, Inc. 75 8 0.32%
The Roman Catholic Archbishop of San Francisco 72 9 0.31% Mac Duff Restaurants Inc. 53 10 0.23%
Pacifica Care Center, Inc. 50 11 0.22%
Cal-Pacific Construction, Inc. 50 12 0.22%
Oil Changer, Inc. 50 13 0.22% 90 5 0.41%
Pacifica Linda Mar, Inc. 50 14 0.22%
Recology of the Coast 49 6 0.22%
Rite Aid 42 7 0.19%
Ross Dress for Less 30 8 0.14%
North Coast County Water District 20 9 0.09%
Totals 1,802 7.80% 1,581 7.12%
Total City Labor Force 23,100 22,200
Notes:

Source: Information from EDD office which retrieved information from Dun & Bradstreet 2024 2015
185

CITY OF PACIFICA

FULL TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government
Administration 6 7 7 7 8 7 6 6 6.5 6.5
Finance 6 6.5 7.5 6.5 7.5 8 8 9 14 13
Parks 54 65.5 53 51 56 55 55 56 32.5 32.5
Planning & Building 7 7 7 7 7 8 7 8 8.75 9.75
Public Works 21 19 22 23 23 22 22 24 32 35.5
Engineering 5 5 6 6 4 4 4 5
Police
Officers 34 29 33 37 33 34 35 33.5 35 36
Civilians 4 3 4 4 4 4 4 4 4.5 5
Fire
Firefighters 25 25 25 23 25 25 26 25 25 25
Civilians 1 1 1 1 1 1 1 1 1 1
Wastewater Division 26 24 26 27 27 25 25 25 25 25
Authorized Full-Time Positions 189 192 191.5 192.5 195.5 193 193 196.5 184.25 189.25 Notes:

Administration covers city manager's office positions
Finance covers financial and administrative service that includes finance, HR and IT Source: City Financial FY2024 Budget Book - Master Position Control 186

CITY OF PACIFICA

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government
Building Permits Issued 1,587 1,682 1,921 1,811 1,413 1,447 1,538 1,620 1,526 1,451 Building Inspections Conducted 3,018 4,093 4,610 4,630 5,143 5,145 3,966 4,455 4,115 4,012 Police
Physical Arrests 923 864 702 816 890 747 693 680 861 742 Parking Violations 5,085 4,700 5,099 6,257 4,942 4,065 5,169 4,080 3,240 2,444 Traffic Violations 2,193 1,763 2,090 2,718 3,435 2,243 1,723 2,415 2,392 1,605 Fire
Emergency Responses 3,147 3,215 2,977 3,142 3,167 2,882 2,943 3,225 3,627 3,447 Fires Extinguished 106 88 77 66 59 43 46 31 32 37
Inspections 951 955 730 783 862 513 308 929 802 836
Other Public Works
Street Re-surfacing (miles) 0.90 0.00 0.00 0.51 1.55 0.48 0.50 11.00 8.37 8.35 Potholes Repaired 351 1,125 1,200 1,200 500 1,000 500 700 700 800 Parks, Beaches & Recreation estimated estimated estimated estimated estimated estimated estimated estimated estimated estimated Community Center Admissions 95,730 89,654 98,480 92,000 100,563 126,024 2,100 50,650 56,700 66,250 Enterprise Fund WWTP
Residential Sewer Accounts 11,455 11,480 11,470 11,479 11,913 11,916 11,923 11,920 11,916 11,210 Commercial Sewer Accounts 340 345 342 343 350 349 349 353 375 348 Total Accounts 11,795 11,825 11,812 11,822 12,263 12,265 12,272 12,273 12,291 11,558 New Connections 4 10 17 10 7 2 8 1 2 -
Avg Daily Sewage Treatment (Gallons) 2,240,000 2,463,000 3,230,000 2,463,000 2,463,000 2,463,000 2,463,000 2,485,000 2,986,000 2,873,000 Source: Various City Departments
187

CITY OF PACIFICA

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 12 12 12 12 12 12 12 12 12 12
Fire
Stations 2 2 2 2 2 2 2 2 2 2
Public Works
Streets (miles) 88.9 88.9 88.9 88.9 88.9 88.9 88.9 88.9 88.9 88.9 Streetlights 2,051 2,051 2,051 2,051 2,051 2,051 2,051 2,051 2,051 2,051 Traffic Signals 5 5 5 5 5 5 5 5 5 5
Parks, Beaches & Recreation
Acreage 148.13 148.13 148.13 148.13 148.13 148.13 148.13 148.13 148.13 148.13 Playgrounds 14 14 14 14 14 14 14 14 14 14
Baseball Diamonds 5 5 5 5 5 5 5 5 5 5
Soccer/Football Fields 2 2 2 2 2 2 2 2 2 2
Community Centers 1 1 1 1 1 1 1 1 1 1
Wastewater
Sanitary Sewers (miles) 165 165 104 104 104 104 104 104 104 104 Storm Sewers (miles) 90 90 90 90 90 90 90 90 90 90
Treatment Capacity (gallons) 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 Notes:

No capital asset indicators are available for the general government function.

Source: Various City Departments
188

CITY OF PACIFICA

SEWER RATES

LAST TEN FISCAL YEARS
Fiscal Minimum Rate per
Year Ended Annual 100
June 30 Charge Cubic Feet
2015 583.26 12.15128
2016 600.42 12.50867
2017 626.14 13.04476
2018 676.24 14.08834
2019 730.34 15.21541
2020 788.77 16.43264
2021 843.98 17.58293
2022 903.06 18.81373
2023 934.67 19.47221
2024 967.38 20.15374
Notes:

Sewer rates are based on water usage. The North Coast County Water District invoices customers directly for water usage.

Source: City Records
189