Pacifica City Council
February 23, 2026

FOR THE FISCAL YEAR ENDED
JUNE 30, 2025
FINANCIAL REPORT Annual Comprehensive

CALIFORNIA

CITY OF PACIFICA
170 Santa Maria Ave
Pacifica, CA 94044
650-738-7300
www.cityofpacifica.org

CITY OF PACIFICA, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Prepared by:

Finance Department
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City of Pacifica
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
Page

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

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 ................................................................... 35 Proprietary Fund Financial Statements:

Statement of Net Position ................................................................................................................................. 37 Statement of Revenues, Expenses and Changes in Fund Net Position ...................................................... 38 Statement of Cash Flows ................................................................................................................................... 39 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ............................................................................................................... 40 Statement of Changes in Fiduciary Net Position .......................................................................................... 41 Notes to Basic Financial Statements ...................................................................................................................... 45 i
City of Pacifica
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued
Required Supplementary Information:

Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan .......................... 98 Schedule of Contributions – Miscellaneous Plan ........................................................................................... 100 Schedule of Proportionate Share of Net Pension Liability and Related Rations as of the Measurement Date – Safety Plan .................................................................................................... 102 Schedule of Contributions – Safety Plan.......................................................................................................... 104 Schedule of Changes in Net Pension Liability and Related Ratios – PARS ............................................... 106 Schedule of Contributions – PARS ................................................................................................................... 108 Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................................... 110 Schedule of OPEB Contributions ...................................................................................................................... 112 Notes to Required Supplementary Information ............................................................................................. 113 Budgetary Comparison Schedule:

General Fund .................................................................................................................................................... 114 Disaster Accounting Fund – Special Revenue Fund ................................................................................... 116 Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet .................................................................................................................................. 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.................................. 128 Combining Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ........................................................................................................................................... 133 Internal Service Funds:

Combining Statement of Net Position ............................................................................................................. 158 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................................. 159 Combining Statement of Cash Flows ............................................................................................................... 160 Statistical Section:

Financial Trends:

Net Position by Component .............................................................................................................................. 162 Changes in Net Position ..................................................................................................................................... 164 Fund Balances in Governmental Funds ........................................................................................................... 166 Changes in Fund Balances of Governmental Funds ...................................................................................... 168 ii
City of Pacifica
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents, Continued
Page
Statistical Section, Continued:

Revenue Capacity:

Taxable Sales by Category ................................................................................................................................. 170 Direct and Overlapping Sales Tax Rates ......................................................................................................... 171 Revenues by Source ............................................................................................................................................ 172 Assessed Valuation, Tax Rate and Tax Levies ................................................................................................ 173 Direct and Overlapping Property Tax Rates ................................................................................................... 174 Principal Property Taxpayers ............................................................................................................................ 175 Property Tax Levies and Collections ................................................................................................................ 176 Debt Capacity:

Outstanding Debt by Type – Governmental ................................................................................................... 177 Ratios of Outstanding Debt by Type – Business-Type .................................................................................. 178 Direct and Overlapping Governmental Activities Debt ................................................................................ 179 Legal Debt Margin Information ........................................................................................................................ 180 Wastewater Obligations Pledged Revenue Coverage ................................................................................... 181 Demographic and Economic Information:

Demographic and Economic Statistics ............................................................................................................. 182 Principal Employers ........................................................................................................................................... 183 Operating Information:

Full Time Equivalent Employees by Function/Program .............................................................................. 184 Operating Indicators by Function/Program ................................................................................................... 185 Capital Asset Statistics by Function/Program ............................................................................................... 186 Sewer Rates .......................................................................................................................................................... 187 iii
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January 16, 2026
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, 2025. 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, 2025.

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.

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

MAYOR PRO TEM
Greg Wright

COUNCIL
Sue Beckmeyer
Mary Bier
Scenic Pacifica Mayra Espinosa
Incorporated November
22, 1957
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 Ensure compliance with applicable Federal and State laws and regulations related to programs for which the City receives assistance.

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, 2025. 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 Introductory 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 for 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. vi
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 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 37,217. A combination of residential, office, and commercial retail businesses, and natural open space, comprises 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 which extends to social services such as childcare and senior services, code enforcement, planning and zoning, and overall leadership through general administrative services. The City coordinates garbage and recycling services through a franchise agreement, while water, gas, and electric utilities, and other social services are provided 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, or make recommendations for expenditure containment, if needed. The City Manager, Assistant City Manager, Director of Finance and Administrative Services, Deputy Finance Director, and Financial Analyst 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 fund level by tracking expenditures and budget vii
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 Finance 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 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 2024-25 Mid-Year Budget Adjustments were adopted by Council via Resolution No. 26-2025 on March 24, 2025. Budgets are adopted on accrual basis consistent with GAAP. Budget-to-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 4.3 percent for the third quarter of 2025. As the Federal Open Market Committee continues to focus on returning the inflation rate to 2 percent, they voted at the December 2025 meeting to lower the target range for the federal funds rate by a ¼ percentage point to 3 ½ percent. According to the U.S. Bureau of Labor Statistics as of the latest data, the Consumer Price Index for All Urban Consumers (CPI-U), increased at an annual rate of

2.7 percent as of the twelve months ended on November 2025.

According to the Bureau of Labor Statistics, the national unemployment rate increased to 4.6 percent in November 2025, when compared to the 4.2 percent unemployment rate from November 2024. The number of jobs added to nonfarm payroll rose by 64,000 in November, with employment gains in healthcare and construction, while federal government employment declined by about 6,000, following a loss of 162,000 in October.

The U.S. Census Bureau and U.S. Department of Housing and Urban Development jointly reported that housing starts in August 2025 decreased 8.5 percent from July 2025 and were 6.0 percent below the August 2024 level. Permits for new construction, a leading indicator of future demand, have increased 3.7 percent from July to August 2025 but were still 11.1 percent below the August 2024 level. Monthly housing data releases were delayed following the 2025 federal government shutdowns, and some scheduled reports were not published on their usual timetable.

Active US housing listings increased 12.1 percent nationally over the last year, according to the December 2025 housing report from Realtor.com, with the West and South regions showing the fastest growth. Median asking home prices were modestly lower on a year-over-year basis, continuing a trend of flat to slightly declining prices as supply expanded. However, price per square foot increased from 1% to 4% varying by region. Homes also tended to remain on the market longer than a year earlier. The typical home spent 73 days on the market in December, 4 days longer than the same time last year indicating a slower sales pace.

State Budget and Economic Outlook
Due to impacts of the federal government shutdown, available data for October and November 2025 are tentatively scheduled to be released January 2026. However, using the December 2025 report analyzing September’s 2025 data, according to the California Employment Development Department (EDD), California’s seasonally adjusted unemployment rate moved to 5.6% after two consecutive months at 5.5%. In related data that figures into the state’s unemployment rate, there viii
were 359,565 people certifying for unemployment insurance benefits during the September sample week, which is up 145 claims from prior year.

A report from the California Association of Realtors showed that in November 2025 the statewide median home price was $852,680, essentially staying flat compared to the previous year. Median time on the market is lower than the national average at 32 days, but that is up 23.1 percent year over year.

At this same time last year, California's budget outlook had projected a $363 million surplus for the 2025-26 budget cycle. However, by May the projections shifted to a $12 billion deficit, attributed to the wildfire-related costs, Med-Cal caseload and cost increases, economic volatility, associated with tariff uncertainty, and reductions in Federal funding for infrastructure and homelessness response. As part of the State’s budget-balancing efforts, the vehicle license fee (VLF) in-lieu funds were withheld, which had a direct impact on the City of Pacifica; additional detail is provided in the MD&A section of this report. Looking ahead, the Legislative Analyst’s Office (LAO) is currently projecting an $18 billion deficit for the next budget cycle, the Governor’s budget preview is expected in early spring, followed by a May revision, with final review and adoption by Legislature by June 15th.

Local Economy
According to the California Employment Development Department, as of September 2025, there were an estimated 421,900 jobs in San Mateo County, a decrease of 16,400 jobs from September 2024. The unemployment rate in San Mateo County has increased year over year from 3.5% to 4%. This is .6 – 1.6% lower comparatively with an unadjusted unemployment rate of 5.6% for California and 4.6% for the nation during the same period as stated in the previous sections. As of the same period, there were 1,036,800 jobs reported in Santa Clara County, an area to which our economic fortunes are closely linked, with similar unemployment rate of 4.5%.

Similar to broader statewide economic trends, the local economy in San Mateo County continues to navigate a mixed environment characterized by modest job market shifts and resilient revenue performance in key taxable activities. The County’s largest revenue source, property tax, remains fundamentally strong due to rising assessed values, as evidenced by a record-high local property assessment roll that grew by nearly 4.8% for the 2025-26 fiscal year, reflecting sustained real estate valuation.

San Mateo County remains one of the most expensive housing markets in California, with median home prices well above $1 million. According to data from the California Association of Realtors, the median sale price of a single-family home in San Mateo County increased by 10 percent from $1.73 million in December 2024 to $1.9 million in December 2025. This pattern suggests a shift in the composition of homes sold, with relatively larger or higher-value properties accounting for a greater share of transactions, while more moderately priced homes remained constrained in supply. In Pacifica, the median price of a single-family home has stayed stable over the last year at $1.3 million in December 2025, however price per square foot has decreased from $862 to $816.

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 Forecast (LTFF). 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 most recent Long Term Financial Forecast, presented to the City Council on November 10, 2025 during the Revenue Generation Study Session, identified a projected structural imbalance in the General Fund beginning in FY 2026-27. The forecast ix
estimated a deficit of approximately $3.1 million (5.74% of revenues) in FY 2026-27, with deficits persisting throughout the forecast period. The structural gap was projected to peak at approximately $6.6 million (12.22% of revenues) in FY 2027-28 and remain elevated, with an estimated $5.4 million deficit (9.06% of revenues) in FY 2031-32, reflecting the expiration of Measure Y revenues at the end of its term. Additionally, the LTFF displayed that if the deficit were to remain unaddressed by FY 2026-27, the unassigned fund balance would fall below the GFOArecommended guidelines of two months of operating expenditures, with full depletion of reserves projected by FY 2028-29 without corresponding revenue increases or expenditure reductions.

At the November 10 study session, the Council directed City Manager to assess the feasibility of a parcel tax with a public safety focus, as well as assess the feasibility of an infrastructure measure for roads, for future Council consideration of whether to place a revenue measure on the November 2026 ballot.

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 LTFF is expected after the mid-year budget review in March.

The City's total Fund Balance in the General Fund is $22.6 million as of June 30, 2025. The Fund Balance is comprised of four components; a Non-spendable portion of $23 thousand; an Assigned portion of $5.6 million which includes the Budget Shortfall Reserve amount of $4.7 million and other requirements per Council decision for specific purposes; a Restricted portion of $0.5 million for Pension Trust; leaving an Unassigned portion of $16.4 million. The Unassigned portion of the General Fund totals 36.13% 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.

While the City’s General Fund balance remains strong as of June 30, 2025, the projected structural deficit identified in the Long-Term Financial Forecast represents a growing concern that will require ongoing monitoring and policy action.

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, 2025. This was the fourth 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, Director of Finance and Administrative Services, Lucy Xie, Deputy Finance Director, Spencer Tseng, Senior Accountant, and Stephanie Coy, Financial Analyst, for their dedicated work coordinating and executing the year-end 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 x
throughout the year. Finally, we would like to express our appreciation to the City Council for their attention and unfailing support in 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
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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, 2024
Executive Director/CEO
xiii
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
Preparedness Senior Services
Patrol Services Aquatics
Traffic Safety Child Care
Crime
Prevention
Divisions
City Council
Residents of Pacifica
City of Pacifica Organization Chart
Departments
xiv

SUE BECKMEYER
MAYOR

MARY BIER

MAYOR PRO TEM

CHRISTINE BOLES

MAYRA ESPINOSA

GREG WRIGHT

MEMBERS OF THE COUNCIL
* * * * *

KEVIN WOODHOUSE

CITY MANAGER
* * * * *

MICHELLE MARCHETTA KENYON

CITY ATTORNEY
* * * * *
OTHER ADMINISTRATIVE OFFICERS:

YULIA CARTER ASSISTANT CITY MANAGER
MARISOL GÓMEZ DIRECTOR OF ADMINISTRATIVE SERVICES AND FINANCE

SAMANTHA UPDEGRAVE DIRECTOR OF COMMUNITY DEVELOPMENT

RON MYERS FIRE CHIEF

MARIA SARASUA POLICE CHIEF

SCOTT LESLIE DIRECTOR OF PARKS, BEACHES & RECREATION

MELISSA TIGBAO 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
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xvi
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, 2025, 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, 2025, 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:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  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.
 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.  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.
 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 Disaster Accounting Special Revenue Fund, and the required pension and OPEB schedules on pages 7-24 and 98-116 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 2 To the Honorable Mayor and Members of the City Council of the City of Pacifica
Pacifica, California

standards generally accepted in the United States of America, 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 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 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 Disaster Accounting 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.
3 To the Honorable Mayor and Members of the City Council of the City of Pacifica
Pacifica, California

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 16, 2026 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 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
Emeryville, California
January 16, 2026
4 MANAGEMENT’S DISCUSSION

AND ANALYSIS
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6 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
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, 2025. 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
This Financial Highlights section is a high level summary of key year-to-year changes, with further details provided in the Statement of Net Position section which discusses the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, the Statement of Activities section which breaks down information by sources of revenues and uses of resources for governmental and proprietary funds, as well as the Financial Analysis of the City’s Major Funds section which explains the activity at the major fund level in more detail.

CITY-WIDE:
 Total City assets increased by $11.9 million to $259,027,913 of which $166,913,010 represented governmental assets and $92,114,903 represented business-type assets, driven primarily by capital and infrastructure investments in the Sewer Utility Fund. The City’s capital assets are summarized in Table 6.
 City deferred outflows related to pension, other post-employment benefits (“OPEB”), and deferred losses on debt refunding decreased by $8,471,300 to $20,412,563 of which $19,243,353 represented governmental deferred outflows pertaining to pension and other post-employment benefits and $1,169,210 represented business-type deferred outflows related to pension and other post-employment benefits.
 Total City liabilities decreased by $4,731,755, largely due to the payment of long-term obligations, to $159,709,881, of which $101,719,893 was governmental liabilities and $57,989,988 was business-type liabilities.
 Total City deferred inflows of resources decreased by $556,214 to $5,483,564, of which $4,713,156 was governmental-type deferred inflows related to pension and other postemployment benefits, and $770,408 was business-type deferred inflows pertaining to pension and other post-employment benefits.
 The City’s assets and deferred outflows of resources exceeded the liabilities and deferred inflows by $114,247,031 (“net position”), which increased by $8,967,950 compared with the restated prior year’s balance of $105,279,081. This comes from a detailed combination of factors: 1) an increase of $20,528,317 in net investment in capital assets that is not available for future appropriations as a result of capitalization of the Esplanade/Palmetto Bike Pathway Project, Sharp Park construction project, Linda Mar Pump Station Rebuild and Ultraviolet Disinfection Project. The City also capitalized significant pavement resurfacing projects to continue addressing longstanding infrastructure needs, as the City’s pavement condition remains among the lowest statewide, 2) a decrease of $1,952,313 in restricted net position, for governmental activities decreases in restricted net position reflect progress on capital projects, 3) The unrestricted net position further declined by $9,814,330 to $(50,895,085) at the end of FY 2025, most of this decline was in the business-type activities as unrestricted balances shifted to capital investments, and 4) the net prior period adjustment of $206,276 due to a correction of CIP and implementation of GASB 101 (Note 13). The large negative unrestricted net position stems from implementing 7 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
GASB Statements No. 68 and 75, accounting for Pension and OPEB liabilities since FY 2014-15.

Please see Notes 6 and 7 for related disclosures.
 Citywide revenues were $86,837,588, an increase of $9,026,157 over prior year’s total of $77,811,431. For FY 2025 $64,763,907 was generated by governmental activities, and $22,073,681 was generated by business-type activities, excluding interfund transfers. (Table 2)  Citywide expenses were $77,869,638, an increase of $3,416,190 over prior year’s total of $74,453,448. For FY 2025 $57,416,589 was incurred by governmental activities, and $20,453,049 was incurred by business-type activities, excluding interfund transfers. (Table 2) FUND LEVEL:
 The City’s governmental funds reported combined fund balances of $45,184,471, an increase of $4,633,190 compared to restated prior year balance of $40,551,281, primarily as a result of the improvement in the General Fund balance by $3,895,197 from slightly higher-than anticipated revenues and reduced expenditures, including salary savings due to vacancies. (Table 4)  The General Fund's assets exceeded its liabilities, resulting in an ending fund balance of $22,635,647. Of the ending fund balance, $23,188 is non-spendable, which consists solely of prepaid items, the restricted fund balance of $582,633 is from the Pension Trust, $5,583,698 is assigned, which includes a fund balance reserve requirement of $4,684,107 and other fund balance requirements per Council for specific purposes. The remaining unassigned portion of the fund balance of $16,446,128 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 resulting in a net position of $34,523,717, a decrease of $132,168 from the restated prior fiscal year net position of $34,655,885. (Note 13A)  The net position of internal service funds was $4,416,830, an increase of $411,350 from the restated prior year’s balance of $4,005,480, primarily attributable to capitalization of the several big vehicle acquisition costs. (Note 13)

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This Annual Comprehensive Financial Report is presented in three sections: the Introductory, Financial, and Statistical Sections. These sections consist of six major components designed to provide a complete understanding of the City’s financial position and operations:
1) Introductory Section, which includes the Transmittal Letter, City Council Organizational 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 the 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. 8 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
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.

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 flow. 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 two major governmental funds: General and Disaster Accounting. 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 9 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
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.

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, Statistical Information section 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.
10 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025

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, 2025, was $114,247,031, representing an increase of $8,967,950 over the prior year of $105,279,081, as restated. This increase resulted from the following factors: 1) an increase in total assets of $11.9 million as a result of delivery and capitalization of major capital projects; 2) a decrease of $8.5 million in the deferred outflows of resources related to OPEB and Pension over the prior year, reflecting updates from the most recent actuarial valuations and the City’s ongoing pre-funding strategy through an irrevocable trust with Public Agency Retirement Services (PARS); 3) a decrease of $4.7 million in liabilities which is primarily the payment of long term obligations; 4) A decrease of $0.5 million in deferred inflows of resources from OPEB and Pension based on most recent actuarial reports; 5) Restated net change of $0.2 million from a correction of CIP and implementation of GASB 101.

Total assets and deferred outflows of resources were $279,440,476 as of June 30, 2025, reflecting a

1.0% increase from the prior year of $275,966,771. Total liabilities and deferred inflows were $165,193,445 as of June 30, 2025, compared with $170,481,414 as of June 30, 2024, reflecting a decrease of 3% (Table 1).

As of June 30, 2025, 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 $144.8 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.
11 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
The City’s restricted net assets of $20.3 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. For governmental activities, decreases in restricted net position reflect progress on capital projects.

The remaining balance of net position is in the unrestricted category, which as of June 30, 2025, is reporting a deficit balance of $(50.9) million. The decline in unrestricted was primarily driven by business-type activities, as unrestricted balances were applied toward capital investments, which corroborates why business-type net investments in capital assets increased. As stated earlier, the deficit (negative) balance in unrestricted net position is 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 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 citywide total net position is $114.2 million at the end of the fiscal year. The City’s governmental activities' net position of $79.7 million, an increase of $9.0 million compared to the prior year. The increase is primarily driven by increased program revenue, most notably Childcare program grant receipts, a one-time $2.0 million settlement refund from the State, and a transfer in of $1.8 million for cost reimbursements from other funds. Business-type activities ended the fiscal year with a net position of $34.5 million, reflecting a $0.1 million decrease from the prior year (Table 2) FY25 FY24 FY25 FY24 FY25 FY24
Cash and investments $ 40,617,617 $ 42,597,502 $ 22,833,444 $ 29,396,958 $ 63,451,061 $ 71,994,460 Other assets 14,593,997 7,095,193 (5,808,110) 495,796 8,785,887 7,590,989 Capital assets 111,701,396 103,774,210 75,089,569 63,723,249 186,790,965 167,497,459 Total assets 166,913,010 153,466,905 92,114,903 93,616,003 259,027,913 247,082,908 Deferred Outflows of Resources 19,243,353 27,126,201 1,169,210 1,757,662 20,412,563 28,883,863 Current liabilities 12,010,491 8,915,117 7,946,641 5,545,290 19,957,132 14,460,407 Non-current liabilities 89,709,402 95,604,334 50,043,347 54,376,895 139,752,749 149,981,229 Total liabilities 101,719,893 104,519,451 57,989,988 59,922,185 159,709,881 164,441,636 Deferred Inflows of Resources 4,713,156 5,321,486 770,408 718,292 5,483,564 6,039,778 Net Position
Net Investment in
Capital Assets 95,522,509 86,677,910 49,270,531 37,586,813 144,793,040 124,264,723 Restricted 20,349,076 22,301,389 - - 20,349,076 22,301,389 Unrestricted (36,148,271) (38,227,130) (14,746,814) (2,853,625) (50,895,085) (41,080,755) Total net position $ 79,723,314 $ 70,752,169 $ 34,523,717 $ 34,733,188 $ 114,247,031 $ 105,485,357 Business-Type
Activities Totals
Table 1
Comparative Statement of Net Position
Activities
Governmental
12 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
The citywide total revenues were $86.8 million as of June 30, 2025, an increase of $9.0 million from the previous fiscal year, with Governmental and Business-Type activities increasing by $7.8 million and $1.2 million, respectively. Program revenue for both Governmental and Business-type activities increased by $5.2 million from $33.4 million to $38.6 million, with an increase of $2.3 million in capital grants in Governmental activities and an increase of $1.6 million in charges for services. Revenues from all taxes increased by $1.2 million from $36.4 million to $37.6 million, which includes increases of $0.4 million in property taxes and $0.8 million in all other taxes. Motor Vehicle in-Lieu (VLF) revenue increased by $1.0 million in FY 2025 to $4.8 million. The timing of this source of funding is dependent on the State’s budgeting and the remittance process.

The citywide total expenses were $77.9 million, an increase of $3.4 million or 5% over the prior fiscal year of $74.4 million. The Governmental activities expense increased by $1.9 million. The BusinessType activities expenses increased by $1.5 million. Sewer operation included a $1.1 million increase in depreciation expense and $0.4 million increase in transfer out to motor pool for equipment purchase. Other categories stayed fairly consistent with the prior year. (Table 2) 13 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
Governmental Activities Sources of Revenues. In FY 2025, the City Governmental Activities received nearly 58% of its revenue from taxes, including 31% from property taxes, 15% from other taxes, 9% from sales taxes, and 3% from franchise taxes. The city also received 14% in charges for services, 6% from operating contributions and grants, 7% from capital grants, and 7% from Motor Vehicle in-Lieu. Investment earnings take 3% of the total revenue and represent an increase of $0.4 million over the prior fiscal year.

Governmental Activities Use of Resources. In FY 2025, 80% of the City’s expenditure from Governmental Activities was attributable to direct municipal services such as Public Safety, Public Works, Parks, Beaches and Recreation, and Community Development with 45%, 15%, 12%, and 8%, respectively. This decreased compared with 82% in the prior year. Total expenditures were $57.4 million in FY 2025, an increase of $1.9 million compared to $55.5 million in the prior fiscal year. While Public Works expenditures decreased by $3.4 million, this reduction was offset by increased spending in General Government ($1.8 million), Public Safety ($2.9 million), Community Development ($0.5 million), and Parks, Beaches and Recreation ($0.1 million). 14 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
The majority of these governmental activities are financed through City taxes. However, program revenues generated by specific services help offset a portion of related departmental expenditures.

In FY 2025 governmental expenditures totaled $57.4 million and were partially offset by $17.9 million in program revenues, an increase of $3.5 million from $14.4 in the prior year. (Table 3) These program revenues of $17.9 million included $9.1 million in charges for services, $4.0 million in operating grants and contributions, and $4.8 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 associated with parks, beaches, and recreational programs and events.

Operating grants and contributions are restricted for operations-related expenditures, while capital grants and contributions are required for capital investments purposes. (Table 2) General
Government,
Public Safety, 19%
45%
Community
Development,
8% Public
Works, 15% Parks,
Beaches and
Recreation,
12%
Interest on
Long-term
Debt, 1%
Governmental Activities - Use of Resources
FY 2025
$57.4 M
15 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
Business-type Activities
The net position of the City’s business-type activities decreased by $0.1 million from a beginning net position, as restated at $34.6 million to $34.5 million at the end of the fiscal year. Total revenues for business-type activities were $22.1 million, an increase of $1.2 million compared to the prior fiscal year, driven by a $1.7 million increase in charges for services, partially offset by a decrease of $0.5 million in interest earnings. (Table 2 and Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position)
Business-type activity expenses totaled $20.4 million at the end of the fiscal year, an increase of $1.5 million, or 8 percent, compared to $18.9 million in the prior fiscal year. The increase was driven primarily by higher depreciation expense and transfers out to the Motor Pool Fund for vehicle purchases for the Sewer Enterprise Fund. Additional increases in expenses are attributable to the implementation of GASB Statement No. 101 related to the recognition of sick leave liabilities. (Table 2 and Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position) Unlike governmental activities, program revenues from business-type activities fully cover the cost of operations without reliance on City taxes. The City periodically reviews and adjusts sewer and parking rates to ensure revenues are sufficient to cover operating costs and long-term liabilities. In recent years, the Beach Parking Fund has experienced declines in certain sources, including parking fees and related fines and forfeitures. This fund will be analyzed in more detail during the budget cycle.

The Sewer Enterprise Fund has initiated the sewer rate study for the next 5-year cycle, which is anticipated to take effect in FY 2027-28 upon adoption by the City Council.

FINANCIAL ANALYSIS OF THE CITY’S MAJOR FUNDS
In government accounting, the major vs. non-major fund test determines which funds are significant enough to be reported separately in financial statements, using a two-part quantitative rule (10% of its fund type total AND 5% of combined governmental/enterprise totals for assets, liabilities, revenues, or expenditures), plus qualitative judgment, with the General Fund always being major, to provide clarity to users. Non-major funds are then aggregated into a single column and found in the Supplementary Information section of the ACFR, allowing the City’s larger and more significant funds to be highlighted more clearly.

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 FY 2024-25, the City’s Governmental Funds reported total fund balances of $45.1 million, which is an increase of $4.6 million from restated $40.5 million in the prior fiscal year. The net change consists of a $3.9 million increase in the General Fund fund balance, an increase of $2.9 million in Disaster Accounting Fund, and a $2.3 million decrease in combined fund balances of the City’s remaining governmental funds. The Disaster Accounting Fund was reclassified as a major fund this year as a result of the major vs. non-major fund test. (Table 4)
The General Fund and the Disaster Accounting Fund are considered major funds and are reported separately in the basic Financial Statements. As of FY 2025, the General Capital Improvement Fund 16 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
qualifies as a Nonmajor Governmental Fund, and information on these types of funds can be found in the Supplementary Information section of the ACFR.

General Fund
The General Fund is the City’s primary operating fund. General Fund revenues totaled $50.6 million in the current fiscal year compared to $46.5 million in the prior fiscal year. This $4.1 million, or 8.8%, increase is a result of the following main factors: an increase of $1.3 million in property tax, an increase of $1.5 million in intergovernmental receipts, an increase of $1.0 million in charges for services, and a modest increase of $0.1 million in recreational program revenues.

General Fund expenditures totaled $45.5 million, an increase of $4.3 million or 10.4%, compared to $41.2 million in the prior year. General Government expenditures increased by $1.1 million from $7.0 million in FY 2024, driven mainly by higher personnel costs ($0.4 million), and increased legal, litigation-related activities ($0.6 million). Public Safety expenditures increased as well, with Police Department costs rising by $0.7 million due to higher personnel costs associated with the implementation of new memorandum of understanding (MOU) provisions and increased overtime resulting from staffing challenges. Fire Department expenditures increased by $1.0 million, due to higher emergency response and increased overtime costs of $0.7 million, and $0.3 million increase in retirement costs. The Community Development Department expenditures increased by $0.8 million primarily due to higher contractual services in the Planning Division. Public Works expenditures increased by $0.2 million, mainly due to an increase in Engineering Services. Parks, Beaches, and Recreation expenditures rose by $0.5 million, primarily due to filling vacancies and other program increases.

During the fiscal year, the General Fund received $1.4 million in transfers from various funds, including the Measure A Street Construction Fund, Gas Tax Fund, and NPDES Stormwater Fund, to offset salaries and benefits for staff directly supporting those programs. The General Fund also transferred out $2.6 million to support street improvements and other capital improvement projects, fund General Liability insurance premiums, and contribute to Internal Service Funds for future fire equipment replacements and Motor Pool vehicle purchases.

Fund Balance Fund Balance Net change in
FY25 FY24 Fund Balance
General Fund $ 22,635,647 $ 18,740,450 $ 3,895,197
Disaster Accounting Fund 10,095,537 7,103,135 2,992,402 Other Governmental Funds 12,453,287 14,707,696 (2,254,409) Total Governmental Funds $ 45,184,471 $ 40,551,281 $ 4,633,190 Table 4
Total Governmental Funds
17 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
The Debt Service transfer out from the General Fund was temporarily paused in FY 2025 as the Debt Service Fund had enough balance to cover the debt services payments. 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 $22.6 million as of June 30, 2025, showed an increase of $3.9 million from the prior fiscal year’s restated balance of $18.7 million. The City Council assigned $5.6 million in reserves for specific purposes, as described in Note 10 of the Notes to the Basic Financial Statements. A total of $16.4 million of the General Fund balance remains unassigned, showing a positive increase of $3.8 million from the prior year of $12.6 million.

Disaster Accounting Fund
The Disaster Accounting Fund, with a fund balance of $10 million, holds funds used for emergencies and disaster events. It has a net change of $3.0 million in FY 2025. This fund was reclassified to a major fund as noted above. The revenue received is mainly from Excess ERAF (education revenue augmentation fund) revenues (1.7 million in FY25), strategically set aside for emergencies.

Additionally, a one-time refund of a legal deposit in the amount of $2.0 million and $0.3 million FEMA reimbursement from the 2023 Winter Storm further increased the balance of the fund. The total expenditures of $1.0 million were mostly for small emergency contractual services payments and included almost $0.6 million transfer out to General Capital Improvements for various 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.

FY25 FY24 FY25 FY24
Operating revenues $ 20,712,909 $ 19,042,849 $ 2,177,293 $ 2,629,102 Operating expenses 18,121,595 16,903,507 6,104,917 5,593,404 Operating income (loss) 2,591,314 2,139,342 (3,927,624) (2,964,302) Non-operating revenues (expenses) (970,682) (212,070) 76,574 207,999 Net income (loss) before
contributions and transfers 1,620,632 1,927,272 (3,851,050) (2,756,303) Transfers in (out) (1,752,800) (978,700) 4,262,400 2,412,600 Change in net position $ (132,168) $ 948,572 $ 411,350 $ (343,703) Table 5
Change in Fund Net Position - Proprietary Funds for the year ended June 30, 2025 Total Enterprise Funds Total Internal Service Funds
18 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
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 increased by $1.7 million from the prior year’s $18.6 million to current year of $20.3 million, mainly from a one-time insurance settlement payment of $1.1 million for the Anza Pump station emergency repairs project received in FY 2024-25. The sewer service charges increased by $0.6 million over the last fiscal year.

Total operating expenses of the Sewer Utility Fund increased by $1.3 million, primarily due to a $1.1 million increase in depreciation expense, and $0.3 million payment increase for construction services.

The non-operating revenue/expenses decreased by $0.7 million: Interest revenue decreased by $0.4 million because of a reduction in the interest received, and interest expense increased by $0.3 million as a result of accruals and interest payment per the debt service schedule.

During FY 2025, the fund transferred out $1,752,800, an increase of $774,100 compared to the prior year. The transfer primarily covers Wastewater’s share of general liability, and insurance costs, as well as Motor Pool equipment purchases.

The Sewer Utility Fund reported a total net position of approximately $34.6 million as of fiscal yearend, which remained relatively flat compared to the prior year, with a change in net position of $37,798. A significant portion of the net position, $49.2 million, is related to the City’s net investment in capital assets, resulting in the unrestricted net position of a negative $14.6 million. The Sewer Utility Fund uses the full accrual basis of accounting, under which unfunded pension and other postemployment benefits (OPEB) liabilities are recorded, contributing to the negative unrestricted net position.

Internal Service Funds
The Internal Service Funds represent funds to cover employee dental expenses and risk management funds, including general liability and the worker’s compensation programs. Additionally, the Motor Pool Fund supports the day-to-day operation and maintenance, and replacement purchases of city vehicles and equipment. The Internal Service Funds experienced an increase in net position of $0.4 million, compared to the prior year, primarily due to capitalization of the vehicle purchases. (Table 5)

GENERAL FUND BUDGETARY HIGHLIGHTS
Detailed information on budget variances can be found in the Budgetary Comparison Schedule, and General Fund notes as required supplementary information. The Adopted Fiscal Year 2024-25 General Fund budget conservatively assumed slow revenue growth. The ongoing budgeted expenditures were also contained mainly at the same service level, and within the forecasted revenue to maintain a structurally balanced budget.

Total General Fund revenues were $50.6 million, exceeding the amended budget of $46.8 million by $3.8 million. Total expenditures remain consistent with the prior year at $45.5 million, only $0.1 million less than the amended budget of $45.6 million.
19 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
The most significant differences between amended final budget and actual results were as follows:
 Total Sales Tax revenue were right on target, only exceeding the budget by $0.1 million in Measure Y.
 Utility Users Tax (UUT) revenues exceeded budget by approximately $0.4 million, contributing to an overall $0.8 million favorable variance in General Fund other tax revenues, which also included higher Transient Occupancy Tax (TOT) receipts.
 Use of money and property revenues exceeded the final budget by a modest $0.1 million as a result of higher rental income and investment earnings due to timely rent collection and close monitoring of investment activities.
 Intergovernmental revenues exceeded the final budget by $1.3 million, primarily due to slightly higher vehicle license fees of $0.2 million and Childcare program grant reimbursement of $1.1 million that was received from the State for the prior years’ reimbursement.  Charges for services exceeded the final budget by $0.7 million, mainly due to several OES reimbursements for Fire services related to the Bridge Fire in September 2024, the Park Fire in November 2024, and the Palisades Fire in January 2025.
 Other miscellaneous revenues exceeded budget by $0.7 million, largely due to the Childcare program receipts from non-state grant-related fees, along with insurance settlements.  General Government total expenditures were under budget by $1.3 million, mainly due to operating and salary savings and delays in some budgeted initiatives and projects.  Expenditures in Public Safety were over budget by $1.6 million. The Police Department’s expenditures were over budget by $0.5 million, mostly because of personnel benefits and payouts related to retirements. Fire Department’s expenditures exceeded the budget by $1.1 million in personnel cost, primarily due to overtime associated with OES responses, most of which is reimbursable.
 Community Development Department expenditures were under budget by about $0.5 million, mostly due to the timing of reimbursable expenses.
 Public Works expenditures exceeded the final budget by $0.1 million, primarily due to the allocation of retirement contributions related to the Unfunded Actuarial Liability (UAL) across various divisions.
 Expenditures for Parks, Beaches, and Recreation were very much aligned with the final budget as a whole.

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 $186.8 million on June 30, 2025, showing an increase of $19.3 million from $167.5 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 assets at historical cost or estimated historical cost if actual historical cost is unavailable. The City 20 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
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.

The Governmental portion of capital assets increased by $8.0 million from the prior year’s total of $103.7 million to the current year’s total of $111.7 million due to the capitalization of projects such as the Esplanade/Palmetto Bike Pathway project and Sharp Park construction project. Capital assets for business-type activities increased by $11.4 million, from $63.7 million in the prior fiscal year to $75.1 million in the current fiscal year, mainly from capitalization of two Wastewater projects: Lower Linda Mar wastewater collection systems and Ultraviolet Disinfection System.

Long-Term Debt
On June 30, 2025, the City’s long-term debt obligations totaled $70.9 million. Governmental Activities had an outstanding debt of approximately $21.8 million, and the Business-Type activities had an outstanding $49.1 million. Overall, the citywide total debt decreased from the prior year by $5.3 million in FY 2025 due to normal debt service scheduled payments. Additional information on long-term debt activity may be found in Note 5 of the Notes to the Basic Financial Statements. 21 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The San Francisco Bay Area is at the center of a dynamic and innovative region with a long track record of creating jobs and opportunities, lasting social and cultural impacts, and tools and ideas that are used worldwide. San Francisco also stands to benefit from an “AI Gold Rush” with anticipated tech expansion that will help boost the downtown area. San Mateo County’s economy remains robust and affluent, underpinned by high professional incomes and expanding property values. Employment is improving, with the unemployment rate reaching a high of 5% in July 2025, but steadily decreasing to 4.6% in September, data in the remaining months will not be published by the BLS due to the government shutdown, however San Francisco County has speculated closer to a 4.2% current unemployment rate. But, housing affordability remains a critical issue: construction hasn't kept pace with demand, while property tax income is rising, stagnant population growth and lack of housing expansion may limit long-term revenue potential.

The City's economic conditions and major initiatives for the coming year are discussed in the accompanying Transmittal Letter authored by the City Manager, Kevin Woodhouse.

Development of the Fiscal Year 2025-26 Budget included an update to the Long Term Financial Forecast (LTFF), and was presented to the City Council on April 14, 2025. With the April 2025 updates, the City's Budget was adopted as a balanced budget, but not considered structurally balanced, as one-time mechanisms were used to achieve the results. The financial model at that time projected structural deficits starting in FY 2026-27 in the amount of $2.7 million. The LTFF was later updated for the Revenue Generation Council Study Session on November 10th, 2025, however the assumptions below are what was used for budget adoption thus included here.

Below are some key points and assumptions applied to the FY2025-2026 budget (additional information can be found in the FY2025-26 Adopted budget document, also available on the City’s website https://www.cityofpacifica.org/departments/administrative-services/finance).

FY 2025-26 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 biggest revenue category. Based on the current collection trends, consistent with the anticipated increases in the assessed market value and information provided by the County and HdL, the City’s property tax consultant, these revenues assume a 3% increase for the upcoming year and annually thereafter.
 Vehicle License Fees (VLF) are tied to property-assessed value growth and a corresponding growth in tax revenue. Utilizing the estimates from San Mateo County, VLF assumes a 6.6% increase year over year, however the State has been unable to fulfill its payments in the year due, causing a shortfall each year. The shortfall becomes an estimate to be received two years later, which is referenced as a backfill. The FY 2025-26 Adopted Budget includes the projected shortfall in the current year of $2.8 million, which will be due in FY 2028. The preliminary assumptions included backfill to be received in the current year owed from FY 2024, in the amount of $2.3 million. After the State of California adopted its budget, the VLF backfill was reduced by 1/3, a reduction of $775k. This has caused a budget deficit to be addressed through the mid-year process. The base annual VLF has been reduced 22 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
by the projected shortfall each year going forward, as well as increased by the projected two-year backfill. This revenue is in constant jeopardy, depending on the State’s budget situation, and the County of San Mateo will be filing a writ of mandate for the wrongfully withheld 1/3 of funds.  Sales Tax assumes a modest increase of 2% for three years based on the most recent projections by HdL (the City’s Sales Tax consultant), followed by a 2.5% increase for the next seven years to consider the cyclical nature of these revenues driven by the local economy.  Measure Y is the new ½ % voter-approved Transaction and Use Tax that went into effect on April 1, 2023. The same projection method is applied to Measure Y as the other regular 1% of Bradley Burns Local Sales and Use Tax mentioned above, assuming 2% increase for FY 2026 through FY 2028 and

2.5% for the future years. Measure Y Transaction and Use Tax measure is scheduled to sunset in 2031, however for the financial forecast, it is carried through the entirety of the ten-year forecast.  Transient Occupancy Tax assumes a 2.5% increase for FY 2026 through FY 2028 and a normal inflation change of 3% thereafter for the subsequent seven years. Unfortunately, due to the Council’s recent ordinance changes related to short-term rental (STR) regulations, the forecast incorporates a reduction of almost $1.5 million over the next three years.  Utility Users' Taxes (UUT) also assume a uniform 2% increase for all ten years, consistent with current collections trends.
 Other Taxes include business license tax, cannabis operations tax, and franchise tax. A modest

2.5% increase is projected for these tax categories in future years. However, this category was also affected by the Council’s recent ordinance changes related to STR regulations and a slight decrease in business license activity was incorporated.
 For FY 2025-26, the General Fund received 100% of the Excess Educational Revenue Augmentation Fund (ERAF) revenues projected. This is a one-time change from the Council Policy of allocating only $145K of ERAF to the General Fund and splitting the rest of the ERAF funding, by 50% each, between the Disaster Accounting Fund (Fund 238) and the Housing In lieu Fund (Fund 224). For FY 2027 through FY 2035, the financial forecast reverts to just the $145k General Fund allocation.

 Departmental or Program Revenues include building, planning, and other permits, recreation revenues, grants, and rentals. In FY 2026 through FY 2028, this category includes a 2% increase, and a 3.5% increase thereafter based on the anticipated continuation of the current service activity level, plus inflationary adjustments to the Wastewater Fund administrative service fee and an anticipated increase in investment income. However, this category was also affected by the Council’s recent ordinance changes related to STR regulations and a slight decrease in STR permits was incorporated.
 Operating Transfers in remains flat. This category mainly includes the cost recovery reimbursements from Fund 216 (NPDES), Fund 210 (Gas Tax) and Fund 209 (Measure A).

FY 2025-26 General Fund Expenditure Assumptions
 Salaries and Benefits (S&B) The FY 2025-26 adopted budget includes a full-time equivalent count of 201.75 citywide. FY 2026 through FY 2028 include projections for changes to recently amended 23 City of Pacifica
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2025
labor contracts, as well as a projected 5% in salary savings. During the budget process Council made a one-time policy decision of not allocating $214k to the pension trust for FY 2025-26. The remaining years include a 4.0% increase annually thereafter to account for increases related to cost of medical, dental, and vision benefits, PERS rates, and unfunded pension liability payments, merit, and other labor-related increases, with no salary savings factor, and include contributions to both the pension and OPEB trusts.
 Contractual Services category assumes an annual increase of 2.0% for most City contracts to account for inflation and regular CPI increases in existing contracts.  Materials, Supplies, and Maintenance category assumes a modest 1.5% increase each year to account for inflation.
 Operating Transfers Out Debt Service category is projected to be in accordance with the City’s updated debt service schedule for each projected year. These are the major debt service obligations included in financing: 2016 COP, 2019 POB, 2021 Civic Center, and the new 2023 Fire Equipment Lease. A reduction of the debt payment starting with FY 2031 is related to the projected payoff for the Pension Obligation Bond.
 Operating Transfers Out Allocations category accounts for transfers to Internal Service Funds, including the Risk Management funds for General Liability and Worker's Compensation insurance premiums and Motor Pool funds to cover motor pool operating expenditures. Also included in this category is an ongoing allocation to the motor pool vehicle replacement fund in order build up fund balance for future fleet replacement. The forecast shows a modest 1.5% increase each year to account for rising insurance premiums.
 Capital Transfers Out category contains the approved allocation of $50k for the FY 2025-26 budget year. The forecast incorporates a minimal ongoing contribution to capital in future years.

Overall, the Adopted FY 2025-26 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.

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, Director of Finance and Administrative Services 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.
24 BASIC

FINANCIAL STATEMENTS
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26 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
27 City of Pacifica
Statement of Net Position
June 30, 2025
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 37,378,748 $ 200 $ 37,378,948
Cash and investments with fiscal agents 245,179 22,459,032 22,704,211 Restricted cash and investments 2,993,690 374,212 3,367,902 Receivables:

Accounts receivable, net of allowance 7,944,162 403,998 8,348,160 Interest receivable 351,924 62,615 414,539
Prepaid costs 23,188 - 23,188
Internal balances 6,274,723 (6,274,723) -
Total current assets 55,211,614 17,025,334 72,236,948
Noncurrent assets:

Capital assets:

Nondepreciable 63,684,728 5,795,317 69,480,045
Depreciable 95,863,926 157,527,464 253,391,390
Less accumulated depreciation (47,847,258) (88,233,212) (136,080,470) Total capital assets 111,701,396 75,089,569 186,790,965 Total noncurrent assets 111,701,396 75,089,569 186,790,965 Total assets 166,913,010 92,114,903 259,027,913

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding of debt 532,189 142,526 674,715 Related to pension 17,884,609 845,245 18,729,854
Related to OPEB 826,555 181,439 1,007,994
Total deferred outflows of resources 19,243,353 1,169,210 20,412,563

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 7,262,595 3,872,971 11,135,566 Interest payable 283,619 502,636 786,255
Refundable deposits 1,095,137 - 1,095,137
Compensated absences - current 1,422,103 226,042 1,648,145 Claims payable - current 74,919 - 74,919
Long-term debt - current portion 1,872,118 3,344,992 5,217,110 Total current liabilities 12,010,491 7,946,641 19,957,132 Noncurrent liabilities:

Compensated absences 1,072,814 170,523 1,243,337
Claims payable 299,674 - 299,674
Net pension liability 66,069,477 3,605,559 69,675,036
Net OPEB liability 2,318,684 508,980 2,827,664
Long-term debt 19,948,753 45,758,285 65,707,038
Total noncurrent liabilities 89,709,402 50,043,347 139,752,749 Total liabilities 101,719,893 57,989,988 159,709,881

DEFERRED INFLOWS OF RESOURCES
Related to pension 1,351,576 32,500 1,384,076
Related to OPEB 3,361,580 737,908 4,099,488
Total deferred inflows of resources 4,713,156 770,408 5,483,564

NET POSITION
Net investment in capital assets 95,522,509 49,270,531 144,793,040 Restricted for:

Construction of capital assets 2,783,389 - 2,783,389
Streets, highways, and other related purposes 2,153,963 - 2,153,963 Parks, beaches, and recreation 4,704,527 - 4,704,527
Stormwater operations 51,156 - 51,156
Public safety 10,656,041 - 10,656,041
Total restricted 20,349,076 - 20,349,076
Unrestricted (36,148,271) (14,746,814) (50,895,085)
Total net position $ 79,723,314 $ 34,523,717 $ 114,247,031 Primary Government
See accompanying Notes to Basic Financial Statements
28 City of Pacifica
Statement of Activities
For the year ended June 30, 2025
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities:

General government $ 10,957,811 $ 617,718 $ 45,632 $ - $ (10,294,461) $ - $ (10,294,461) Public safety 25,748,245 791,310 1,446,568 - (23,510,367) - (23,510,367) Community development 4,507,251 2,564,423 - - (1,942,828) - (1,942,828) Public works 8,882,635 2,344,175 152,428 4,838,010 (1,548,022) - (1,548,022) Parks, beaches and recreation 6,644,401 2,794,861 2,352,367 - (1,497,173) - (1,497,173) Interest on long-term debt 676,246 - - - (676,246) - (676,246) Total governmental activities 57,416,589 9,112,487 3,996,995 4,838,010 (39,469,097) (39,469,097) - Business-type Activities:

Sewer 19,945,597 20,299,827 - - - 354,230 354,230
Beach parking 507,452 413,082 - - - (94,370) (94,370)
Total business-type activities 20,453,049 20,712,909 - - - 259,860 259,860 Total primary government $ 77,869,638 $ 29,825,396 $ 3,996,995 $ 4,838,010 (39,469,097) 259,860 (39,209,237) General Revenues:

Taxes:

Property taxes 20,258,891 - 20,258,891
Sales and use taxes 5,684,487 - 5,684,487
Franchise taxes 1,825,303 - 1,825,303
Other taxes 9,905,254 - 9,905,254
Total taxes 37,673,935 37,673,935 -
Motor vehicle in lieu, unrestricted 4,832,135 - 4,832,135 Investment earnings 1,894,228 1,360,772 3,255,000
Gain on sale of capital assets 80,329 - 80,329
Miscellaneous 2,335,788 - 2,335,788
Transfers 1,752,800 (1,752,800) -
Total general revenues and transfers 48,569,215 (392,028) 48,177,187 Change in net position 9,100,118 (132,168) 8,967,950
Net position - beginning of year 70,752,169 34,733,188 105,485,357 Restatements (128,973) (77,303) (206,276)
Net position - beginning of year, as restated 70,623,196 34,655,885 105,279,081 Net position - end of year $ 79,723,314 $ 34,523,717 $ 114,247,031 and Changes in Net Position
Net (Expense) Revenue
Program Revenues
See accompanying Notes to Basic Financial Statements.
29 This page intentionally left blank
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, 2025
Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 18,230,808 $ 4,914,763 $ 11,675,875 $ 34,821,446 Cash and investments with fiscal agents - - 245,179 245,179 Restricted cash and investments 582,633 - 2,411,057 2,993,690 Receivables:

Accounts receivables 2,734,518 3,008,951 2,200,693 7,944,162 Interest receivables 351,924 - - 351,924
Due from other funds 6,361,145 2,181,374 - 8,542,519
Prepaid items 23,188 - - 23,188
Total assets $ 28,284,216 $ 10,105,088 $ 16,532,804 $ 54,922,108

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 4,496,095 $ 9,551 $ 2,664,055 $ 7,169,701 Due to other funds - - 1,415,462 1,415,462
Refundable deposits 1,095,137 - - 1,095,137
Total liabilities 5,591,232 9,551 4,079,517 9,680,300
Deferred Inflows of Resources
Unavailable revenue 57,337 - - 57,337
Total deferred inflows of resources 57,337 - - 57,337
Fund Balances:

Nonspendable 23,188 - - 23,188
Restricted 582,633 10,095,537 10,253,539 20,931,709
Assigned 5,583,698 - 3,142,907 8,726,605
Unassigned 16,446,128 - (943,159) 15,502,969
Total fund balances 22,635,647 10,095,537 12,453,287 45,184,471 Total liabilities, deferred inflows of
resources and fund balances $ 28,284,216 $ 10,105,088 $ 16,532,804 $ 54,922,108 General Fund
Disaster Accounting
Special Revenue
Fund
See accompanying Notes to Basic Financial Statements.
32 Total Fund Balances - Total Governmental Funds $ 45,184,471 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:

Government-Wide
Statement of Net
Position
Internal Service
Funds Total
Nondepreciable 63,684,728 (258,774) 63,425,954
Depreciable, net 48,016,668 (3,059,889) 44,956,779
Total capital assets $ 111,701,396 $ (3,318,663) 108,382,733 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.
4,416,830
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. 57,337 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. 532,189
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.

Government-Wide
Statement of Net
Position
Internal Service
Funds
Deferred outflows of resources related to pension 826,555 - 826,555 Deferred outflows of resources related to OPEB 17,884,609 - 17,884,609 Deferred inflows of resources related to pension (3,361,580) - (3,361,580) Deferred inflows of resources related to OPEB (1,351,576) - (1,351,576) Long-term liabilities were not due and payable in the current period.

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

Government-Wide
Statement of Net
Position
Internal Service
Funds Total
Compensated absences - due within one year (1,422,103) 14,273 (1,407,830) Claims payable - due within one year (74,919) 74,919 -
Interest payable (283,619) 275 (283,344)
Long-term debt - due within one year (1,872,118) 20,520 (1,851,598) Compensated absences (1,072,814) 10,766 (1,062,048)
Claims payable (299,674) 299,674 -
Long-term debt (19,948,753) 93,480 (19,855,273)
Net pension liability (66,069,477) - (66,069,477)
Net OPEB liability (2,318,684) - (2,318,684)
Total long-term liabilities $ (93,362,161) $ 513,907 (92,848,254)

Net Position of Governmental Activities $ 79,723,314
City of Pacifica
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
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, 2025
Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes $ 31,734,756 $ 1,725,757 $ 6,370,004 - $ $ 39,830,517 Licenses and permits 1,288,816 - - 14,302 1,303,118
Fines and forfeitures 128,747 - - - 128,747
Use of money and property 1,046,600 - - 1,029,717 2,076,317 Intergovernmental 8,931,388 347,485 - 1,220,937 10,499,810 Charges for services 3,911,194 - - 1,557,530 5,468,724
Recreation programs 818,375 - - - 818,375
Other 2,711,308 2,103,400 - 1,300,978 6,115,686
Total revenues 50,571,184 4,176,642 11,493,468 - 66,241,294 EXPENDITURES:

Current:

General government 8,144,521 - - - 8,144,521
Public safety 21,816,150 - - 89,677 21,905,827
Community development 4,270,147 - - 491 4,270,638
Public works 4,937,157 - - 1,326,493 6,263,650
Parks, beaches, and recreation 6,342,220 - - 97,074 6,439,294 Capital outlay 3,192 524,440 - 9,084,452 9,612,084
Debt service:

Principal - - - 1,715,228 1,715,228
Interest and fiscal charges - - - 747,262 747,262
Total expenditures 45,513,387 524,440 13,060,677 - 59,098,504

REVENUES OVER (UNDER)
EXPENDITURES 5,057,797 3,652,202 (1,567,209) - 7,142,790 OTHER FINANCING SOURCES (USES):

Transfers in 1,422,000 - - 1,425,473 2,847,473
Transfers out (2,584,600) (659,800) - (2,112,673) (5,357,073) Total other financing sources (uses) (1,162,600) (659,800) (687,200) - (2,509,600) Net change in fund balances 3,895,197 2,992,402 (2,254,409) - 4,633,190 FUND BALANCES:

Beginning of year 18,740,450 - 441,873 21,368,958 40,551,281 Restatement - 7,103,135 (441,873) (6,661,262) -
Beginning of year, as restated 18,740,450 7,103,135 - 14,707,696 40,551,281 End of year $ 22,635,647 $ 10,095,537 $ - $ 12,453,287 $ 45,184,471 General Fund
General Capital
Improvement
Capital Projects
Fund
Disaster
Accounting
Special Revenue
Fund
See accompanying Notes to Basic Financial Statements.
34 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, 2025
Net Change in Fund Balances - Total Governmental Funds $ 4,633,190 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. 9,475,421
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. (2,482,907) 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. (369,484) 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. 1,715,228 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. 8,184,528
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. (11,587,826) 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. 510,696
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. 92,867 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 (1,557,716)
Change in accrued interest payable 33,864
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.
411,350

Change in Net Position of Governmental Activities $ 9,100,118 Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
35 This page intentionally left blank
36 City of Pacifica
Statement of Net Position
Proprietary Funds
June 30, 2025
Governmental
Activities -
Internal Service
Totals Funds
ASSETS
Current Assets:

Cash and investments $ 200 $ - $ 200 $ 2,557,302
Cash and investments with fiscal agents 22,459,032 - 22,459,032 - Restricted cash and investments 374,212 - 374,212 -
Receivables:

Accounts receivables 399,790 4,208 403,998 -
Interest receivables 62,615 - 62,615 -
Total current assets 23,295,849 4,208 23,300,057 2,557,302 Noncurrent:

Capital assets:

Capital assets, not being depreciated 5,795,317 - 5,795,317 258,774 Capital assets, being depreciated 157,415,415 112,049 157,527,464 11,652,709 Accumulated depreciation (88,157,570) (75,642) (88,233,212) (8,592,820) Net capital assets 75,053,162 36,407 75,089,569 3,318,663 Total noncurrent assets 75,053,162 36,407 75,089,569 3,318,663 Total assets 98,349,011 40,615 98,389,626 5,875,965

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 142,526 - 142,526 -
Related to pension 845,245 - 845,245 -
Related to OPEB 181,439 - 181,439 -
Total deferred outflows of resources 1,169,210 - 1,169,210 -

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 3,848,444 24,527 3,872,971 92,894 Interest payable 502,636 - 502,636 275
Due to other funds 6,235,349 39,374 6,274,723 852,334
Compensated absences - current 209,203 16,839 226,042 14,273 Claims payable - current - - - 74,919
Long-term debt - current portion 3,344,992 - 3,344,992 20,520 Total current liabilities 14,140,624 80,740 14,221,364 1,055,215 Noncurrent liabilities:

Advances from other funds - - - -
Compensated absences 157,820 12,703 170,523 10,766
Claims payable - - - 299,674
Net pension liability 3,605,559 - 3,605,559 -
Net OPEB liability 508,980 - 508,980 -
Long-term debt 45,758,285 - 45,758,285 93,480
Total noncurrent liabilities 50,030,644 12,703 50,043,347 403,920 Total liabilities 64,171,268 93,443 64,264,711 1,459,135

DEFERRED INFLOWS OF RESOURCES
Related to pension 32,500 - 32,500 -
Related to OPEB 737,908 - 737,908 -
Total deferred inflows of resources 770,408 - 770,408 -

NET POSITION
Net investment in capital assets 49,234,124 36,407 49,270,531 3,318,663 Unrestricted (14,657,579) (89,235) (14,746,814) 1,098,167 Total net position $ 34,576,545 $ (52,828) $ 34,523,717 $ 4,416,830 Business-Type Activities
Sewer Utility
Beach Parking
(Non-Major)
See accompanying Notes to Basic Financial Statements.
37 City of Pacifica
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2025
Governmental
Activities -
Internal Service
Totals Funds
OPERATING REVENUES:

Charges for services $ 19,065,185 $ 413,082 $ 19,478,267 $ 1,368,196 Other operating income 1,234,642 - 1,234,642 809,097
Total operating revenues 20,299,827 413,082 20,712,909 2,177,293 OPERATING EXPENSES:

Personnel services 5,298,069 413,954 5,712,023 647,413
Administration 1,298,255 42,958 1,341,213 3,090
Supplies and materials 1,716,477 13,397 1,729,874 678,956 Insurance expense - - - 3,357,109
Outside contractors 522,153 - 522,153 4,069
Maintenance 658,921 24,300 683,221 199,093
Insurance claims - - - 290,553
Depreciation 5,664,772 12,843 5,677,615 924,634
Utilities 2,455,496 - 2,455,496 -
Total operating expenses 17,614,143 507,452 18,121,595 6,104,917 Operating income (loss) 2,685,684 (94,370) 2,591,314 (3,927,624) NONOPERATING REVENUES (EXPENSES):

Investment earnings 1,360,772 - 1,360,772 -
Gain on sale of capital assets - - - 80,329
Interest and fiscal charges (2,331,454) - (2,331,454) (3,755) Total nonoperating revenues (expenses) (970,682) - (970,682) 76,574 Income before contributions and transfers 1,715,002 (94,370) 1,620,632 (3,851,050) CONTRIBUTIONS AND TRANSFERS:

Transfers in - - - 4,262,400
Transfers out (1,752,800) - (1,752,800) -
Total contributions and transfers (1,752,800) - (1,752,800) 4,262,400 Change in net position (37,798) (94,370) (132,168) 411,350 NET POSITION:

Beginning of year 34,687,980 45,208 34,733,188 4,006,949 Restatements (73,637) (3,666) (77,303) (1,469)
Beginning of year, as restated 34,614,343 41,542 34,655,885 4,005,480 End of year $ 34,576,545 $ (52,828) $ 34,523,717 $ 4,416,830 Business-Type Activities
Sewer Utility
Beach Parking (NonMajor)
See accompanying Notes to Basic Financial Statements.
38 City of Pacifica
Combining Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
Governmental
Activities -
Internal Service
Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $ 19,905,655 $ 417,928 $ 20,323,583 $ 2,177,293 Payments to suppliers (3,953,838) (79,276) (4,033,114) (912,990) Payments for claims - - - (3,447,992)
Payments to and on behalf of employees (5,389,668) (457,597) (5,847,265) (702,401) Net cash provided by (used in) operating activities 10,562,149 (118,945) 10,443,204 (2,886,090) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund payments (1,752,800) (1,752,800) - -
Interfund receipts - - - 4,158,011
Due to other funds 6,235,349 39,374 6,274,723 -
Net cash provided by (used in)
noncapital financing activities 4,482,549 39,374 4,521,923 4,158,011 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Purchase of capital assets (17,043,935) (17,043,935) - (603,396) Proceeds from sale of capital assets - - - (844,305)
Principal paid on long term debt (3,195,096) (3,195,096) - (19,285) Interest paid (2,678,397) (2,678,397) - (3,796)
Net cash provided by (used in)
capital and related financing activities (22,917,428) (22,917,428) - (1,470,782) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 1,388,787 - 1,388,787 -
Net cash provided by (used in) investing activities 1,388,787 - 1,388,787 - Net cash flows (6,483,943) (79,571) (6,563,514) (198,861) CASH AND INVESTMENTS - Beginning of year 29,317,387 79,571 29,396,958 2,756,163 CASH AND INVESTMENTS - End of year $ 22,833,444 $ 22,833,444 - $ $ 2,557,302

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

Operating income (loss) $ 2,685,684 $ (94,370) $ 2,591,314 $ (3,927,624) Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 5,664,772 12,843 5,677,615 924,634
(Increase) decrease in accounts receivable (394,172) 4,846 (389,326) - (Increase) decrease in prepaid items 390,494 - 390,494 - Increase (decrease) in accounts payable 2,306,970 1,379 2,308,349 (27,782) Increase (decrease) in claims payable - - - 199,670
Increase (decrease) in net pension liability (496,573) - (496,573) - Increase (decrease) in deferred pension related items 495,262 - 495,262 - Increase (decrease) in OPEB liability (255,497) - (255,497) - Increase (decrease) in deferred OPEB related items 123,008 - 123,008 (54,988) Increase (decrease) in compensated absences 42,201 (43,643) (1,442) - Net cash provided by (used in) operating activities $ 10,562,149 $ (118,945) $ 10,443,204 $ (2,886,090) NONCASH TRANSACTIONS:

Amortization of loss on refunding of bonds $ (22,298) $ - (22,298) $ - Amortization of bond premium 275,521 - 275,521 -
Sewer Utility
Beach Parking
(Non-Major)
Business-Type Activities
See accompanying Notes to Basic Financial Statements.
39 City of Pacifica
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2025
Private Purpose
Trust Fund
Successor
Agency of the
Former RDA
ASSETS
Cash and investments $ 98,318
Cash and investments with fiscal agents 252,656
Total assets 350,974

LIABILITIES
Interest payable 20,556
Long-term liabilities:

Long-term debt - due within one year 85,000
Long-term debt - due in more than one year 630,000
Total liabilities 735,556

NET POSITION
Restricted for:

Private purposes (384,582)
Total Net Position $ (384,582)
See accompanying Notes to Basic Financial Statements.
40 City of Pacifica
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
For the year ended June 30, 2025
Private Purpose
Trust Fund
Successor
Agency of the
Former RDA
ADDITIONS:

Investment revenue $ 7,049
Taxes and assessments 236,512
Total additions 243,561
DEDUCTIONS:

Interest expense 43,476
Community development expense 40,401
Total deductions 83,877
Change in net position 159,684
NET POSITION:

Beginning of year (544,266)
End of year $ (384,582)
See accompanying Notes to Basic Financial Statements.
41 This page intentionally left blank
42 NOTES TO BASIC

FINANCIAL STATEMENTS
43 This page intentionally left blank.
44 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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.
45 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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.
46 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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.
• Disaster Accounting Fund – This fund is used to account for all revenues and expenditures incurred due to natural and man-made disasters.

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.
47 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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. 48 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 using the consumption method. Under this method, prepaid items are recorded as expenditures when used rather than when purchased.

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.
49 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, with a maximum limit per employee of $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.

The City's liability for compensated absences is recorded in the government-wide statement of net position and proprietary fund financial statements. Liabilities for leave are assumed to be accrued using the last in, first out method, meaning the most recently earned leave is used first. The City recognizes a liability for compensated absences, including sick leave, that is more likely than not to be used as time off or settled in cash. The liability is measured at the base salary rate plus applicable employer costs. A liability for compensated absences is reported in the governmental funds only when they have matured (such as amounts estimated to be paid upon retirement or termination 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.

Changes in compensated absences for the year ended June 30, 2025, were as follows:

Governmental Business-Type
Activities Activities Total
Balance as of June 30, 2024,
as restated $ 2,180,420 $ 398,007 $ 2,578,427
Changes (net) 314,497 (1,442) 313,055
Balance as of June 30, 2025 2,494,917 396,565 2,891,482 Current Portion 1,422,103 226,042 1,648,145
Non-current Portion $ 1,072,814 $ 170,523 $ 1,243,337
50 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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.

Secured Unsecured
Valuation dates January 1 January 1
Lien/levy dates July 1 July 1
Due dates 50% on November l July 1
50% on February 1
Delinquent as of December 10 August 31
April 10
51 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025.

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:
52 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025.

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 funds and departments as deemed necessary to meet the City's operational needs. The legal budgetary control of the City Council is at the fund level, this is the level where City management cannot overspend the Budget without approval from the City Council.

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. 53 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY, Continued A. Budgetary information, Continued
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.

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:

Fund/Department
Excess of
Expenditures
Over
Appropriations
Major Funds:

General Fund:

Public Safety $ 1,649,889
Non-Major Special Revenue Funds:

Gas Tax 52,502
NPDES Stormwater 127,172
Street Construction Fund 144,038
Street Improvement 707,865
Tree Preservation 6,700
General Capital Improvement Fund 1,319,059
Manor Drive Improvement 541,389
Parks and Playfield 3,392
Planned Local Drainage 342
Frontierland Remediation 1,787
54 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, the following funds had deficit fund balances:
 Gas Tax Special Revenue Fund $ 322,366
 Tree Preservation Special Revenue Fund $ 55,867
 General Capital Improvement Fund $ 564,926
 Beach Parking $ 52,828
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, 2025 are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments $ 37,378,948
Cash and investments with fiscal agents 22,704,211
Restricted cash and investments 3,367,902
Statement of fiduciary net position:

Cash and investments 98,318
Cash and investments with fiscal agents 252,656
Total cash and investments $ 63,802,035
55 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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.

Maximum
Maximum Minimum Credit Maximum % Investment
Authorized Investment Type Maturity Quality of Portfolio in One Issuer U.S. Treasury Bills, Bonds and Notes 5 years None None None Federal Agency or U.S. Government-
Sponsored Enterprise Obligations 5 years Aa/AA None None Commercial Paper 270 days P-1/A-1+ 25% 5%
Negotiable CD's 1 year P-2/A-1 25% None
Banker's Acceptances 180 days A 25% 5%
State of California Obligations and
Obligations of the other 49 States 2 years Aa/AA 25% None Money market funds or money market
mutual funds N/A Highest Ranking None None
State of California Local Agency
Investment Fund (State Pool) N/A None
Statutory
Limit
Statutory
Limit
Shares of Beneficial Interest issued by a
Joint Powers Authority, such as
California Asset Management Program
(CAMP) and CalTrust N/A AAAm 25% None
Medium Term Corporate Notes 5 years
A for 3 years or less
AA for over 3 years 25% 5%
Non-Negotiable Certificates of Deposit
(FDIC insured) 5 years None None None
Repurchase Agreements 180 days None 25% None
56 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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.

Maximum Minimum Credit
Authorized Investment Type Maturity Quality
Municipal Bonds None AAA
Commercial Paper 270 days A-1
U.S. Treasury Obligations None None
U.S. Agency Securities None None
Time Deposits (Unsecured) 30 days A-1
Money Market Funds None AAAm
Investment Contracts None AALocal Agency Investment Fund None None Certificates of Deposit 1 year A-1+
Bankers Acceptances 1 year A-1+
Pre-refunding Municipal Bonds None AAA
State and Municipal Bonds None Two Highest Categories
57 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, and have an average maturity of 42 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 $ 27,345,640 $ 27,345,640 Non-Negotiable Certificate of Deposit 2,411,057 2,411,057 Held by Trustees:

Money Market Funds 22,956,867 22,956,867
Escrow Retention 374,212 374,212
Pension Trust 582,633 582,633
Total Investments $ 53,670,409 $ 53,670,409
Cash in Banks 10,128,381
Petty Cash 3,245
Total Cash in Banks and On Hand 10,131,626
Total Cash and Investments $ 63,802,035
Remaining Maturity (in Months)
58 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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.

Investment Type AAAm Not Rated Total
California Local Agency Investment Fund $ 27,345,640 - $ $ 27,345,640 Non-Negotiable Certificate of Deposit 2,411,057 - 2,411,057 Held by Trustees:

Money Market Funds 22,956,867 22,956,867 - Escrow Retention 374,212 - 374,212 Pension Trust 582,633 - 582,633
Total Investments $ 22,956,867 $ 30,713,542 $ 53,670,409 Cash in Banks 10,128,381
Petty Cash 3,245
Total Cash in Banks and On Hand 10,131,626
Total Cash and Investments $ 63,802,035
Rating as of Fiscal Year End
59 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. CASH AND INVESTMENTS, Continued
G. Custodial Credit Risk, Continued
As of June 30, 2025, 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 1.001198310 as of June 30, 2025. 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, 2025, LAIF’s investments in structured notes and asset-backed securities were 3.81% of the total LAIF balance as compared to 3.00% 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, 2025, the trust had a balance of $582,633 PARS’ policy for the allocation of invested assets is established as:

Asset Class Target Allocation
Global Equity 20-40%
Fixed Income 50-80%
Cash 0-20%
60 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025:

Balance Balance
July 1, 2024 Adjustment Additions Deletions Transfers June 30, 2025 Capital assets not being depreciated:

Land $ 40,445,580 $ - $ - $ - $ 40,445,580 - $
Construction in progress 18,822,067 331,275 9,475,422 (5,389,616) - 23,239,148 Total capital assets not being depreciated 59,267,647 331,275 9,475,422 (5,389,616) - 63,684,728 Capital assets being depreciated:

Buildings & improvements 16,949,742 - - 1,385,102 - 18,334,844 Vehicles 9,755,681 1,516,610 - (327,733) 10,944,558 - Machinery and equipment 3,574,970 - 11,420 (3,342) 3,583,048 - Infrastructure 58,996,962 - - 4,004,514 - 63,001,476 Total capital assets being depreciated 89,277,355 1,528,030 - (331,075) 5,389,616 95,863,926 Less accumulated depreciation for:

Buildings & improvements (12,595,214) (459,371) - - (13,054,585) - Vehicles (7,427,138) (910,880) - 327,733 (8,010,285) - Machinery & equipment (3,486,160) (70,722) - 3,342 (3,553,540) - Infrastructure (21,262,280) (1,966,568) - - (23,228,848) - Total accumulated depreciation, as restated (44,770,792) (3,407,541) - 331,075 (47,847,258) - Depreciable capital assets, net, as restated 44,506,563 (1,879,511) - 5,389,616 - 48,016,668 Total capital assets, net, as restated $ 103,774,210 $ 331,275 $ 7,595,911 $ - $ 111,701,396 - $ 61 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025:

Depreciation expense for business-type activities was charged to enterprise funds as follows:

General government $ 58,291
Public safety 551,225
Public works 2,727,189
Parks, beaches, and recreation 58,682
Internal Service Fund 12,154
Total Governmental Activities $ 3,407,541
Balance Balance
July 1, 2024 Additions Transfers June 30, 2025
Capital assets not being depreciated:

Land $ 4,014,412 $ - $ 4,014,412 - $
Construction in progress 2,018,518 17,016,478 (17,254,091) 1,780,905 Total capital assets not being depreciated, as
restated 6,032,930 17,016,478 (17,254,091) 5,795,317
Depreciable capital assets:

Buildings & improvements 77,911,158 27,457 5,222,385 83,161,000 Collection system 58,052,230 12,031,706 - 70,083,936
Machinery and equipment 4,282,528 - 4,282,528 - Total capital assets being depreciated 140,245,916 27,457 17,254,091 157,527,464 Less accumulated depreciation for:

Buildings & improvements (62,711,524) (2,445,893) (65,157,417) - Collection system (16,895,292) (2,948,527) (19,843,819) - Machinery & equipment (2,948,781) (283,195) (3,231,976) - Total accumulated depreciation (82,555,597) (5,677,615) (88,233,212) - Depreciable capital assets, net 57,690,319 (5,650,158) 17,254,091 69,294,252 Total capital assets, net, as restated $ 63,723,249 $ 11,366,320 $ 75,089,569 - $ Sewer Utility $ 5,664,772
Beach Parking 12,843
Total Business Activities $ 5,677,615
62 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2024 Retirements June 30, 2025 One Year
Certificates of Participation:
2016 COP $ 12,010,000 $ (760,000) $ 11,250,000 $ 815,000 Premium 1,493,430 (114,879) 1,378,551
Sub-total COP 13,503,430 (874,879) 12,628,551 815,000
Financed Purchase (Direct borrowing):
2021 Civic Center 3,950,000 (75,000) 3,875,000 100,000
Sub-total financed purchases 3,950,000 (75,000) 3,875,000 100,000 Pension Obligation Bonds:
2019 Pension obligation refunding bond
(88.622%) 6,216,833 (899,513) 5,317,320 957,118
Total Governmental Activities $ 23,670,263 $ (1,849,392) $ 21,820,871 $ 1,872,118 Balance Balance Due within
July 1, 2024 Retirements June 30, 2025 One Year
Revenue bonds:
2014 Wastewater Revenue Refunding $ 3,625,000 $ (1,675,000) $ 1,950,000 $ 1,755,000 Net Premium 296,553 (118,623) 177,930 - 2017 Wastewater Revenue Bonds 20,820,000 (690,000) 20,130,000 725,000 Net Premium 2,981,067 (156,898) 2,824,169 - Sub-total Revenue bonds: 27,722,620 (2,640,521) 25,082,099 2,480,000 Pension Obligation bonds:
2019 Pension obligation bond
(11.378%) 798,167 (115,486) 682,681 122,882
Notes payable (Direct Borrowing):

Loan and Installment Agreement 3,423,802 (328,865) 3,094,937 340,704 IBank Loan 20,629,305 (385,745) 20,243,560 401,406
Total notes payable 24,053,107 (714,610) 23,338,497 742,110 Total Business-Type Activities: $ 52,573,894 $ (3,470,617) $ 49,103,277 $ 3,344,992 63 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025 was $324,664 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, 2025.

Fiscal year ended Principal Interest Total
2026 $ 100,000 $ 75,353 $ 175,353
2027 311,000 71,304 382,304
2028 317,000 65,118 382,118
2029 323,000 58,814 381,814
2030 329,000 52,392 381,392
2031 - 2035 1,747,000 161,038 1,908,038
2036 - 2037 748,000 14,814 762,814
Total $ 3,875,000 $ 498,833 $ 4,373,833
64 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025 was $207,525 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, 2025.

Fiscal year ended Principal Interest Total
2026 $ 815,000 $ 490,350 $ 1,305,350
2027 790,000 449,600 1,239,600
2028 870,000 410,100 1,280,100
2029 895,000 366,600 1,261,600
2030 875,000 321,850 1,196,850
2031 - 2035 4,915,000 942,020 5,857,020
2036 - 2037 2,090,000 93,900 2,183,900
Total $ 11,250,000 $ 3,074,420 $ 14,324,420
65 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025 was $130,577 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:

Fiscal year ended Principal Interest Total
2026 $ 957,118 $ 154,046 $ 1,111,164
2027 1,028,015 128,559 1,156,574
2028 1,094,482 99,157 1,193,639
2029 1,165,379 67,308 1,232,687
2030 1,072,326 32,813 1,105,139
Total $ 5,317,320 $ 481,883 $ 5,799,203
Fiscal year ended Principal Interest Total
2026 $ 340,704 $ 105,285 $ 445,989
2027 352,970 92,799 445,769
2028 365,677 79,864 445,541
2029 378,841 66,462 445,303
2030 392,479 52,578 445,057
2031 - 2033 1,264,266 69,343 1,333,609
Total $ 3,094,937 $ 466,331 $ 3,561,268
66 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025.

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.

Fiscal year ended Principal Interest Total
2026 $ 122,882 $ 19,778 $ 142,660
2027 131,985 16,505 148,490
2028 140,519 12,731 153,250
2029 149,621 8,642 158,263
2030 137,674 4,213 141,887
Total $ 682,681 $ 61,869 $ 744,550
67 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025 was $11,949 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, 2025.

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, 2025.

Fiscal year ended Principal Interest Total
2026 $ 1,755,000 $ 53,625 $ 1,808,625
2027 195,000 4,875 199,875
Total $ 1,950,000 $ 58,500 $ 2,008,500
68 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025.

Fiscal year ended Principal Interest Total
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 885,000 784,725 1,669,725
2031 - 2035 5,110,000 3,238,850 8,348,850
2036 - 2040 6,355,000 1,990,125 8,345,125
2041 - 2043 4,655,000 356,875 5,011,875
Total $ 20,130,000 $ 9,920,100 $ 30,050,100
69 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 $70,496,302. The Sewer Utility Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $5,208,279 and $9,711,228 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:
 Department Directors
 Battalion Chiefs
 Firefighters
 Management Unit
 Police Officers
 Police Supervisors
 Police Management
 Wastewater Treatment Plant
 Miscellaneous Employees
Fiscal year ended Principal Total
2026 $ 401,406 $ 874,471 $ 1,275,877
2027 417,703 856,639 1,274,342
2028 434,662 838,082 1,272,744
2029 452,309 818,773 1,271,082
2030 470,673 798,679 1,269,352
2031 - 2035 2,656,003 3,662,254 6,318,257
2036 - 2040 3,240,765 3,022,412 6,263,177
2041 - 2045 3,954,274 2,241,697 6,195,971
2046 - 2049 4,824,872 1,289,095 6,113,967
2051 - 2053 3,390,893 230,772 3,621,665
Total $ 20,243,560 $ 14,632,874 $ 34,876,434
Interest and
Annual Fee
70 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 2025 was $158 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.

Active employees 190
Inactive employees receiving benefit payments 56
Inactive employees entitled to but not yet receiving benefit payments 0 Total 246
71 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2024 and was determined by an actuarial valuation as of June 30, 2024 to determine the total OPEB liability as of June 30, 2025, based on the following actuarial methods and assumptions:

Discount Rate: The expected long-term real rate of return of the OPEB Trust is 7.10% as of June 30, 2024 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 – The assumptions for the Plan changed from the measurement date June 30, 2021 to the measurement date June 30, 2022 as follows:
 Discount Rate increased from 6.50% as of June 30, 2023, to 7.10% as of June 30, 2024.  Health care trend rates were updated as follows based on the updated Getzen Model of LongRun Medical Cost Trend and publicly available healthcare trend rate surveys and medical inflation data:
o Pre-Medicare trend rate from 6.50% that decreases gradually to an ultimate rate of

3.73% by FYE 2076, to 6.80% that trends down to 4.04% by FYE 2075.

Measurement Date June 30, 2024
Actuarial Valuation Date June 30, 2024
Contribution Policy Entry Age Normal Level Percentage of Pay Discount Rate 7.10%
Inflation 2.30%
Payroll Growth 2.80%
Based on 2022 Getzen model that reflects actual
premium changes from 2022 to 2023 followed by
Helathcare Trend Rates 6.50% in 2023, increasing to 6.80% in 2024, trending down gradually to 4.04% over 51 years
Target Expected Long-Term
Asset Classes Allocation Real Rates of Return
Domestic Equity 57.5% 7.50%
International Developed Equity 10.3% 7.10%
Emerging Markets Equity 5.3% 7.40%
REITs 2.0% 7.00%
Short-Term Bonds 3.0% 3.70%
Core Fixed Income 16.0% 4.70%
High Yield 1.0% 6.80%
Cash 5.0% 2.70%
100%
72 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2024:
(Measurement date 6/30/23) $ 4,810,477 $ 563,382 $ 4,247,095 Changes Recognized for the Measurement Period:

Service cost 183,881 - 183,881
Interest 316,584 - 316,584
Benefit changes - - - Differences between expected and actual experience (340,158) - (340,158) Changes of assumptions (1,046,433) - (1,046,433)
Contributions from the employer - 447,667 (447,667)
Benefit payments (247,667) (247,667) - Net investment income - 88,945 (88,945) Administrative expenses - (3,307) 3,307
Net changes (1,133,793) 285,638 (1,419,431)
Balance as of June 30, 2025:
(Measurement date 6/30/24) $ 3,676,684 $ 849,020 $ 2,827,664 Increase (Decrease)
Discount Rate -1% Current Discount Rate Discount Rate +1%

6.10% 7.10% 8.10%
$ 3,186,208 $ 2,827,664 $ 2,517,274
Net OPEB Liability/(Asset)
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase

5.80% 6.80% 7.80%
$ 2,674,373 $ 2,827,664 $ 3,005,463
Net OPEB Liability
73 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, the City recognized an OPEB expense (credit) of ($225,356). As of the fiscal year ended June 30, 2025, 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, $510,696 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, 2026. Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made
subsequent to the measurement date $ 510,696 $ - Differences between actual and expected experience 75,236 (937,833) Changes in assumptions or other inputs 422,062 (3,136,507) Net differences between projected and actual earnings on OPEB plan investment - (25,148)
Total $ 1,007,994 $ (4,099,488)
Year
Ended June 30
Annual
Amortization
2026 $ (613,076)
2027 (649,208)
2028 (839,923)
2029 (865,149)
2030 (152,126)
Thereafter (482,708)
Total $ (3,602,190)
74 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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:
 Miscellaneous (agent multiple-employer plan)
 Safety Police (cost-sharing multiple-employer plan)
 PEPRA Safety Police (cost-sharing multiple-employer plan)  Safety Fire (cost-sharing multiple-employer plan)
 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, 2025, 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 $ 21,209,164 $ 46,418,082 $ 2,047,790 $ 69,675,036 Deferred outflows of resources 4,972,030 13,757,824 18,729,854 - Deferred inflows of resources 191,175 1,147,549 45,352 1,384,076 Pension expense (income) 3,423,982 8,954,062 (71,966) 12,306,078 Employer Contributions
(measurement period) 2,994,067 4,655,716 88,418 7,738,201 75 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. PENSION PLANS, Continued
B. Miscellaneous Plan, Continued
The Plan’s provisions and benefits in effect at June 30, 2025, 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, 2023:

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, 2024, using an annual actuarial valuation as of June 30, 2023 and methods used to determine the net pension liability is shown below.

Miscellaneous
Benefit formula 2.5% @ 55
2% @ 55
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 50-55
Monthly benefits, as a % of eligible compensation 2-2.5% Required employee contribution rates 8.00%
Required employer contribution rates 12.60%
Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 228
Inactive employees entitled to but not yet receiving
benefits 209
Active employees 126
Total 563
76 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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:

Total Pension Plan Fiduciary Total Pension
Liability Net Position Liability
Balance at June 30, 2023 Measurement Date $ 121,524,135 $ 97,393,953 $ 24,130,182 Changes in the year:

Service cost 2,316,562 - 2,316,562
Interest on the total pension liability 8,212,400 - 8,212,400 Changes of Benefit Terms - - - Changes of assumptions - - - Difference between expected and actual experience (338,233) (338,233) Contributions - employer - 2,994,067 (2,994,067)
Contributions - employees - 937,444 (937,444)
Net investment income - 9,259,487 (9,259,487)
Benefit payments, including refunds of employee
contributions (6,647,767) (6,647,767) - Administrative expenses - (79,251) 79,251 Balance at June 30, 2024 Measurement Date $ 125,067,097 $ 103,857,933 $ 21,209,164 Increase (Decrease)
Miscellaneous
1% Decrease 5.90%
Net Pension Liability $ 37,264,209
Current Discount Rate 6.90%
$ 21,209,164
1% Increase 7.90%
Net Pension Liability $ 7,975,276
77 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, the City recognized pension expense of $3,423,982. At June 30, 2025, 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, $3,374,159 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, 2026. 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.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 3,374,159 $ - Differences between actual and expected experience 56,922 (191,175) Changes in assumptions - - Net differences between projected and actual earnings on plan investments 1,540,949 - Total $ 4,972,030 $ (191,175) Miscellaneous
Year Ended
June 30
Annual
Amortization
2026 $ (183,384)
2027 2,531,442
2028 (413,358)
2029 (528,004)
2030 - Thereafter - $ 1,406,696
78 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2024 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, 2025, are summarized as follows:

Contributions, actuarial assumptions and information regarding the discount rate are discussed in Note 7E below.

Safety-Police Police PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50-57
Monthly benefits, as a % of eligible compensation 3% 2% - 2.7% Required employee contribution rates 9.00% 13.75%
Required employer contribution rates 27.32% 13.76%
Safety-Fire Fire PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 50-57
Monthly benefits, as a % of eligible compensation 2.4% - 3% 2% - 2.7% Required employee contribution rates 9.00% 13.75%
Required employer contribution rates 24.33% 13.76%
79 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. PENSION PLANS, Continued
C. Safety Plan, Continued
As of June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net pension liability of the Safety Plan as $46,418,082.

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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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, 2024 and 2023 was as follows:

Safety
1% Decrease 5.90%
Net Pension Liability $ 67,271,704
Current Discount Rate 6.90%
Net Pension Liability $ 46,418,082
1% Increase 7.90%
Net Pension Liability $ 29,362,750
Proportion - June 30, 2023 0.37673%
Proportion - June 30, 2024 0.38275%
Change - Increase (Decrease) 0.00602%
80 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. PENSION PLANS, Continued
C. Safety Plan, Continued
For the year ended June 30, 2025, the City recognized pension expense of $8,954,062. At June 30, 2025, 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, $5,383,976 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, 2026. 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.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement
date
$ 5,383,976 $ - Differences between actual and expected experience
3,788,129 (123,168)
Changes in assumptions 1,143,646 - Net differences between projected and actual earnings on plan investments
2,243,639 - Differences between actual contributions and proportionate share of contributions
789,202 (462,476)
Change in proportion 409,232 (561,905)
Total $ 13,757,824 $ (1,147,549)
Safety
Year Ended Annual
June 30 Amortization
2026 $ 2,771,836
2027 5,239,260
2028 (17,127)
2029 (767,670)
2030 - Thereafter - $ 7,226,299
81 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, 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, 2025, using an annual actuarial valuation as of June 30:

REP
Inactive employees or beneficiaries currently receiving benefits 24 Inactive employees entitled to but not yet receiving benefits - Active employees - Total 24 Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 $ 4,477,390 $ 2,197,413 $ 2,279,977 Changes in the year:

Service cost - - - Interest on the total pension liability 272,061 - 272,061 (126,574) (126,574) - Effect of assumptions chages or inputs (80,966) - (80,966) Net investment income 201,395 - (201,395)
Contributions - employer - 88,418 (88,418)
Benefit payments (317,932) (317,932) - Administrative expenses - (9,663) 9,663 Other changes - 16,558 (16,558)
Net changes (253,411) (21,224) (232,187)
Balance at June 30, 2025 $ 4,223,979 $ 2,176,189 $ 2,047,790 Increase (Decrease)
Difference between expected and
actual experience
82 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, the City recognized pension expense (credit) of ($71,966). At June 30, 2025, 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 2025 contribution of $88,418 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.

REP
1% Decrease 5.50%
Net Pension Liability $ 2,480,827
Current Discount Rate 6.50%
Net Pension Liability $ 2,047,790
1% Increase 7.50%
Net Pension Liability $ 1,679,756
Deferred Outflows Deferred Inflows
of Resources of Resources
$ - $ (45,352)
Total $ - $ (45,352)
REP
Net differences between projected and
actual earnings on plan investments
Year Ended Annual
June 30 Amortization
2026 $ 57,099
2027 (44,641)
2028 (41,078)
2029 (16,732)
2030 - Therafter - $ (45,352)
83 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 $1,923,242 and $3,768,681 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, 2024, for CalPERS, the total pension liabilities were determined by rolling forward the June 30, 2023 total pension liability. The PARS REP total pension liability for the measurement period ended June 30, 2025, was determined by an actuarial valuation as of that date. The June 30, 2025 total pension liabilities were based on the following actuarial methods and assumptions:

CalPERS PARS REP
Valuation Date June 30, 2023 June 30, 2025
Measurement Date June 30, 2024 June 30, 2025
Actuarial Cost Method Entry-age normal in accordance with the requirements of GASB 68
Entry-age normal, level percent of pay
Actuarial Assumptions:

Discount Rate 6.90% 6.50%
Inflation 2.30% 2.30%
Payroll Growth 2.80% 0.00%
Projected Salary Increase Varied by entry age and service 2021 CalPERS merit salary increases Investment Rate of Return 6.80% (1) 6.50%
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 probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website. 84 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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:

Asset Class
Assumed Asset
Allocation Real Return (1),(2)
Global Equity-Cap Weighted 30.0% 4.54%
Global Equity-Non-Cap Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study. 85 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 6.30% to 6.50% for the June 30, 2025 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 $1,042,994 during fiscal year end June 30, 2025 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.

Long-term Expected
Asset Class Target Allocation Real Rate of Return
Domestic Equity 57.5% 7.50%
International Developed Equity 10.3% 7.10%
Emerging Markets Equity 5.2% 7.40%
Real Estate 2.0% 7.00%
Short-Term Bonds 3.0% 3.70%
Core Fixed Income 16.0% 4.70%
High-Yield 1.0% 6.80%
Cash 5.0% 2.70%
Total 100%
86 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 $2,314,115 during fiscal year end June 30, 2025 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:
2024 2025
July 1 Liability $ 303,001 $ 174,923
Claims and changes in estimates 213,296 240,878
Payments for claims (341,374) (41,208)
June 30 Liability $ 174,923 $ 374,593
Fiscal Year ended in June 30,
87 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025:

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. Transfers among the nonmajor governmental funds were to pay for debt service as well as to repay streets-related funds for prior expenditures and other capital improvement projects.

Sewer Utility – Transfers from this fund were to pay for a portion of insurance costs.

Non-Major Internal
General Governmental Service
Transfers Out Fund Funds Funds Total
Major Funds:

General Fund -$ 75,000$ 2,509,600$ $ 2,584,600
Disaster Accounting - 659,800 - 659,800 Non-Major Governmental Funds 1,422,000 690,673 - 2,112,673 Major Enterprise Funds:

Sewer Utility - - 1,752,800 1,752,800
Total 1,422,000$ 1,425,473$ 4,262,400$ $ 7,109,873
Transfers In
88 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

9. INTERFUND TRANSACTIONS, Continued
B. Interfund Receivables and Payables
The composition of interfund balances as of June 30, 2025 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:

Due to/from other funds:

Receivable Fund Payable Fund Amount
General Fund Non-Major Governmental Funds 86,422 $
General Fund Sewer Utility 6,235,349
General Fund Non-Major Enterprise Fund 39,374
Disaster Accounting Non-Major Governmental Funds 1,329,040 Disaster Accounting Internal Service Funds 852,334 Total $ 8,542,519
89 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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. 90 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025 are as follows:

Disaster Non-Major Total
General Accounting Governmental Governmental
Fund Fund Fund Funds
Nonspendable:

Prepaid Items $ 23,188 $ - $ 23,188 - $
Subtotal 23,188 - 23,188 - Restricted for:

PARS Pension Trust 582,633 - 582,633 - Supplemental law enforcement - 560,504 - 560,504 Trust activities - 2,448,609 - 2,448,609
Catastrophic events 10,095,537 - 10,095,537 - Streets and roads - 1,908,784 - 1,908,784 Housing - 663,479 - 663,479
Parking - 138,490 - 138,490
Debt services - 245,179 - 245,179
Stormwater operations - 51,156 - 51,156
Parks, beaches, and recreation - 2,117,428 - 2,117,428
Capital projects - 2,119,910 - 2,119,910
Subtotal 582,633 10,095,537 10,253,539 20,931,709
Assigned for: - Fund Balance Reserve 4,684,107 - 4,684,107 - Facility Main & Replace Reserve 205,000 - 205,000 - Compensated Absences Reserve 200,000 - 200,000 - Child Care Reserve 494,591 - 494,591 - Debt services - 434,273 - 434,273 Housing - 2,708,634 - 2,708,634
Subtotal 5,583,698 3,142,907 - 8,726,605
Unassigned: - - General Fund 16,446,128 (943,159) - 15,502,969 Total Unassigned 16,446,128 (943,159) - 15,502,969
Total $ 22,635,647 $ 10,095,537 $ 12,453,287 $ 45,184,471 91 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 2019, the City filed an eminent domain action. In 2023, the trial court awarded the property owner $2 million as just compensation plus $361,266 in prejudgment interest, attorneys’ fees, expert fees, and costs. In early 2025, the City Council decided to abandon the eminent domain action and not to acquire the property. On February 11, 2025, the City filed a notice of abandonment and on June 4, 2025, the trial court denied the Motion to Set Aside the Abandonment. On June 23, 2025, the City adopted a resolution rescinding the Resolution of Necessity that had authorized the filing of this action in the first instance. On July 17, 2025, the trial court granted the property owner’s Motion for attorneys' fees and costs. In August 2025, the City paid the property owner $610,220 in attorneys' fees and costs. The sole remaining issue is the compensation, if any, that the City owes the property owner for having taken prejudgment possession of the Property between March 18, 2019 and February 11, 2025. The City wants to resolve the issue via settlement but negotiations are currently on hold with the property owner.

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.

Governmental
Activities
Business-Type
Activities Total
Capital Assets, net of accumulated depreciation 111,701,396 $ $ 75,089,569 $ 186,790,965 Less: Capital debt (16,503,551) (48,420,596) (64,924,147) Plus: Deferred outflows of resources related to capital debt 324,664 142,526 467,190 Plus: Unspent bond proceeds 22,459,032 - 22,459,032
Net Investment in Capital Assets 95,522,509 $ $ 49,270,531 $ 144,793,040 92 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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.

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, 2025, 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, 2025.

Annual debt service requirements, to maturity, for the 2004 Tax Allocation Bonds are as follows:

Balance Balance Due in
July 1, 2024 Retirements June 30, 2025 One Year
2004 Tax allocation bonds 795,000 $ $ (80,000) $ 715,000 $ 85,000 Fiscal year
ended Principal Interest Total
2026 $ 85,000 $ 38,669 $ 123,669
2027 90,000 33,638 123,638
2028 95,000 28,319 123,319
2029 100,000 22,713 122,713
2030 110,000 16,675 126,675
2031-2032 235,000 13,656 248,656
Total $ 715,000 $ 153,669 $ 868,669
93 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

13. RESTATEMENTS OF FUND BALANCE AND NET POSITION
A. Prior Period Adjustments due to implementation of GASB Statement 101 – Compensated Absences Effective for fiscal year 2025, the City implemented GASB Statement No. 101, Compensated Absences, which updates the recognition and measurement guidance for compensated absences. Under GASB 101, the City now recognizes a liability for sick leave that is more likely than not to be used as time off or settled in cash, in addition to vacation and compensatory time. The City restated the beginning balances for the Governmental Activities, Motor Pool Fund, Sewer Utility Fund, and Beach Parking Fund to account for estimated future usage and settlement of sick leave. The implementation of GASB 101 resulted in a prior period adjustment to decrease beginning net position by $460,248 in Governmental Activities and $77,303 in Business-Type Activities.

B. Correction of an Error in Previously Issued Financial Statements During fiscal year 2024-25, the City made a correction to prior year financial statements related to capital assets. The City adjusted capital assets' beginning balance for construction in progress (CIP) related to capital expenditure additions that had been omitted in the prior year. Governmental CIP and total capital assets were understated by $331,275 in fiscal year 2023-24, resulting in an increase to beginning Net Position of $331,275 in Governmental Activities.

C. Major Fund Designation Changes
In the fiscal year ended June 30, 2025, the Disaster Accounting Fund met the criteria for major fund reporting and is now reported as a major fund. The General Capital Improvement Fund no longer met the criteria for major fund reporting and is now reported as a nonmajor governmental fund.

D. Prior Period Adjustments & Restatements Reconciliation The table on the following page displays the prior fund balances and net positions at June 30, 2024, and the changes made as a result of both:
 Implementation of GASB 101 – Compensated Absences,
 Correction of capital assets,
 Changes in reporting unit for funds moving from major to nonmajor.

Please see the following page for the effect on fund balance and net position for these changes. 94 City of Pacifica
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

13. RESTATEMENTS OF FUND BALANCE AND NET POSITION, Continued Fund Statements
Government-wide Statements

14. SUBSEQUENT EVENTS
Loss of Vehicle License Fee Revenue
Subsequent to June 30, 2025, San Mateo County adopted a budget to withhold one-third of Vehicle License Fee (VLF) funds from cities within the County. This action is expected to reduce the City's VLF revenue by approximately $771,000 in fiscal year 2025-26. A budget contingency was incorporated into the FY 2025-26 adopted budget to mitigate the impact to operations of this anticipated revenue reduction.

Short-Term Rental Regulation Changes
On August 11, 2025, the City Council adopted a new Short-Term Rental Ordinance (Ordinance No. 901-C.S.) where the City amended its Short-Term Rental regulations. The City has experienced a significant reduction in short-term rental permit renewals due to the stricter regulations. This is expected to reduce transient occupancy tax revenues by approximately $730,000 and short-term rental permit and business license tax revenues by approximately $130,000 in fiscal year 2025-26. This projected revenue reduction is slightly above what was incorporated into the FY 2025-26 adopted budget in anticipation of the ordinance changes.

Disaster
Accounting
General
Capital
Improvement Sewer Utility
Beach Parking
(Non-Major)
Internal
Service Funds
Nonmajor
Governmental
June 30, 2024, as previously reported $ 441,873 - $ $ 34,687,980 $ 45,208 $ 4,006,949 $ 21,368,958 Change from major to nonmajor fund 7,103,135 (441,873) - - (6,661,262) - Implementation of GASB 101 - - (73,637) (3,666) (1,469) - June 30, 2024, as restated $ 7,103,135 $ 34,614,343 - $ $ 41,542 $ 4,005,480 $ 14,707,696 Governmental
Activities
Business-type
Activities
June 30, 2024, as previously reported $ 70,752,169 $ 34,733,188 Implementation of GASB 101 (460,248) (77,303)
Correction of capital assets 331,275 -
June 30, 2024, as restated $ 70,623,196 $ 34,655,885
95 This page intentionally left blank
96 REQUIRED

SUPPLEMENTARY INFORMATION
97 City of Pacifica
Required Supplementary Information
For the year ended June 30, 2025
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan - Last 10 Years Schedule of Changes in Net Pension Liability and Related Ratios Measurement Date 6/30/2015 6/30/2016 6/30/2017 6/30/2018

TOTAL PENSION LIABILITY
Service cost $ 1,427,162 $ 1,495,380 $ 1,631,204 $ 1,716,353 Interest 6,123,624 6,346,516 6,501,283 6,687,032
Differences between expected and actual experience (328,078) (755,420) (1,136,322) (407,869) Changes in assumptions (1,478,509) 5,308,829 - (739,131) Changes in benefits - - - -
Benefit payments, including refunds of employee
contributions (3,784,383) (4,047,332) (4,185,238) (4,675,098) Net change in the total pension liability 1,959,816 3,039,144 8,119,756 2,581,287 Total pension liability - beginning 83,032,579 84,992,395 88,031,539 96,151,295 Total pension liability - ending (a) $ 84,992,395 $ 88,031,539 $ 96,151,295 $ 98,732,582

PLAN FIDUCIARY NET POSITION
Contributions - employer $ 1,081,227 $ 1,256,738 $ 1,459,527 $ 1,571,937 Contributions - employee 622,660 685,119 711,067 749,462 Net investment income 1,641,405 382,638 7,967,324 6,524,986 Administrative expense (83,654) (45,303) (107,140) (122,188) Benefit payments, including refunds of employee
contributions (3,784,383) (4,047,332) (4,185,238) (4,675,098) Net Plan to Plan Resource Movement - - - (191)
Other Miscellaneous Income/(Expense) - - (232,037) -
Net change in plan fiduciary net position (522,745) (1,768,140) 5,845,540 3,816,871 Plan fiduciary net position - beginning 74,857,522 74,334,777 72,566,637 78,412,177 Plan fiduciary net position - ending (b) $ 74,334,777 $ 72,566,637 $ 78,412,177 $ 82,229,048 Net pension liability - ending (a) - (b) $ 10,657,618 $ 15,464,902 $ 17,739,118 $ 16,503,534 Plan fiduciary net position as a percentage of the total pension liability 87.46% 82.43% 81.55% 83.28%
Covered payroll $ 8,147,296 $ 8,573,443 $ 8,585,737 $ 9,088,448 Net pension liability as a percentage of covered payroll 130.81% 180.38% 206.61% 181.59% 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 - There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15 percent to 6.90 percent. 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.
98 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 $ 1,756,360 $ 1,869,810 $ 1,748,773 $ 2,027,984 $ 2,115,178 $ 2,316,562 7,042,527 7,404,044 7,659,792 7,695,427 7,985,544 8,212,400 1,371,619 1,330,180 (230,958) (2,876,564) 436,408 (338,233) - - 3,375,679 - - -
- - - 140,626 - -
(4,971,021) (5,288,206) (5,522,755) (5,775,851) (6,503,043) (6,647,767) 5,199,485 5,315,828 3,654,852 4,446,675 4,174,713 3,542,962 98,732,582 103,932,067 109,247,895 112,902,747 117,349,422 121,524,135 $ 103,932,067 $ 109,247,895 $ 112,902,747 $ 117,349,422 $ 121,524,135 $ 125,067,097 $ 1,896,427 $ 2,217,115 $ 2,515,162 $ 2,878,445 $ 3,179,278 $ 2,994,067 733,521 769,486 782,756 780,752 856,956 937,444
5,347,965 4,206,783 19,473,439 (7,840,411) 5,827,606 9,259,487 (58,680) (120,079) (86,870) (64,863) (69,198) (79,251)
(4,971,021) (5,288,206) (5,522,755) (5,775,851) (6,503,043) (6,647,767) - - - - - -
191 - - - - -
2,948,403 1,785,099 17,161,732 (10,021,928) 3,291,599 6,463,980 82,229,048 85,177,451 86,962,550 104,124,282 94,102,354 97,393,953 $ 85,177,451 $ 86,962,550 $ 104,124,282 $ 94,102,354 $ 97,393,953 $ 103,857,933 $ 18,754,616 $ 22,285,345 $ 8,778,465 $ 23,247,068 $ 24,130,182 $ 21,209,164

81.95% 79.60% 92.22% 80.19% 80.14% 83.04%
$ 9,203,795 $ 9,919,416 $ 9,598,095 $ 9,994,993 $ 10,497,162 $ 11,496,588 203.77% 224.66% 91.46% 232.59% 229.87% 184.48%
99 City of Pacifica
Required Supplementary Information
For the year ended June 30, 2025
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan - Last 10 Years Schedule of Contributions
Fiscal Year Ended 2016 2017 2018 2019
Actuarially determined contribution $ 1,256,738 $ 1,459,527 $ 1,571,937 $ 1,896,427 Contributions in relation to actuarially
determined contributions (1,256,738) (1,459,527) (1,571,937) (1,896,427) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 8,573,443 $ 8,585,737 $ 9,088,448 $ 9,203,795 Contributions as a percentage of
covered employee payroll 14.66% 17.00% 17.30% 20.60%
Notes to Schedule
Valuation date June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017 Actuarial cost method Entry age normal
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation
Salary increases Varies by entry age and service
Payroll growth 2.80%
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 2016 to 2018, 7.375% for 2019, 7.25% for 2020, 7.125% for 2021, 7.00% for 2022 & 2023, and 6.80% for 2024, 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 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. 100
2020 2021 2022 2023 2024 2025
$ 2,217,115 $ 2,515,162 $ 2,878,445 $ 3,179,278 $ 2,994,067 $ 3,374,159 (2,217,115) (2,515,162) (2,878,445) (3,179,278) (2,994,067) (3,374,159) $ - $ - $ - $ - $ - $ -
$ 9,919,416 $ 9,598,095 $ 9,994,993 $ 10,497,162 $ 11,496,588 $ 11,183,451

22.35% 26.20% 28.80% 30.29% 26.04% 30.17%
June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 101
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2025
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 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Plan's proportion of the net pension liability 0.30470% 0.31736% 0.31884% 0.33291% Plan's proportionate share of
the net pension liability $ 20,914,148 $ 27,461,120 $ 31,620,401 $ 32,079,854 Covered payroll $ 5,843,663 $ 5,928,087 $ 6,058,030 $ 5,988,447 Plan's proportionate share of the net pension liability as percentage of covered payroll 357.89% 463.24% 521.96% 535.70% Fiduciary net position as a percentage of the total
pension liability 79.47% 74.09% 72.89% 73.46%
102
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024

0.33907% 0.34935% 0.70282% 0.38120% 0.37673% 0.38275%
$ 34,744,594 $ 38,010,670 $ 24,515,482 $ 44,031,142 $ 46,998,326 $ 46,418,082 $ 6,575,368 $ 4,398,589 $ 7,147,760 $ 7,306,572 $ 7,516,077 $ 7,781,632 528.41% 864.16% 342.98% 602.62% 625.30% 596.51%

72.38% 71.10% 81.87% 69.22% 68.21% 69.59%
103
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2025
Cost Sharing Multiple-Employer Defined Benefit Pension Plan - Last 10 Fiscal Years Schedule of Contributions
Safety
Fiscal Year Ended 2016 2017 2018 2019
Actuarially determined contribution 1,900,131 $ $ 2,158,037 $ 2,398,015 $ 2,830,926 Contributions in relation to actuarially
deemed contributions (1,900,131) (2,158,037) (2,398,015) (2,830,926) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 5,928,087 $ 6,058,030 $ 5,988,447 $ 6,575,368 Contributions as a percentage of
covered payroll 32.05% 35.62% 40.04% 43.05%
104
2020 2021 2022 2023 2024 2025
$ 3,301,555 $ 3,724,131 $ 4,160,867 $ 4,545,479 $ 4,655,716 $ 5,383,976 (3,301,555) (3,724,131) (4,160,867) (4,545,479) (4,655,716) (5,383,976) $ - $ - $ - $ - $ - $ -
$ 4,398,589 $ 7,147,760 $ 7,306,572 $ 7,516,077 $ 7,781,632 $ 8,601,866

75.06% 52.10% 56.95% 60.48% 59.83% 62.59%
105
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2025
PARS Retirement Enhancement Plan (REP) Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Changes in Net Pension Liability and Related Ratios 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Total Pension Liability
Service cost $ 55,073 $ 56,725 $ 47,461 $ 48,885
Interest 228,048 238,515 244,298 247,550
Differences between expected and actual experience
(136,732) (78,177) - -
Effect of economic/demographic gains or losses 143,356 196,706 - - Effect of assumptions changes or inputs - - - -
Benefit payments, including refunds of employee
contributions (144,782) (149,371) (157,202) (176,795)
Net change in the total pension liability 144,963 342,575 56,380 119,640 Total pension liability - beginning 3,161,548 3,306,511 3,649,086 3,705,466 Total pension liabilty - ending (a) 3,306,511 3,649,086 3,705,466 3,825,106 Plan Fiduciary Net Position
Contribution - employer 127,848 123,391 121,576 98,849
Net investment income 7,840 172,456 133,898 136,800
Other changes - - - -
Benefit payments, including refunds of employee
contributions (144,782) (149,371) (157,202) (176,795)
Administrative expenses (9,150) (8,664) (9,009) (9,066) Net change in plan fiduciary net position (18,244) 137,812 89,263 49,788 Plan fiduciary net position - beginning 2,055,482 2,037,238 2,175,050 2,264,313 Plan fiduciary net position - ending (b) 2,037,238 2,175,050 2,264,313 2,314,101 Net pension liability/asset - ending (a) - (b) $ 1,269,273 $ 1,474,036 $ 1,441,153 $ 1,511,005 Plan fiduciary net position as a percentage of the
total pension liability 61.61% 59.61% 61.11% 60.50%
Covered payroll $ 1,530,005 $ 1,303,994 $ 1,343,114 $ 988,068 Net pension liability as percentage of covered
payroll 82.96% 113.04% 107.30% 152.93%
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 2014, amounts reported were based on the 7.5% discount rate. 106
6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 $ 35,933 $ 36,921 $ 20,726 $ 21,296 $ 15,270 $ -
253,625 263,809 267,267 271,109 271,346 272,061
12,653 - 205,177 - 25,322 (126,574)
57,961 - 24,928 - - -
8,541 - - 174,017 (53,493) (80,966)
(210,707) (227,211) (239,609) (269,603) (312,994) (317,932) 158,006 73,519 73,312 401,996 (54,549) (253,411)
3,825,106 3,983,112 4,056,631 4,129,943 4,531,939 4,477,390 3,983,112 4,056,631 4,129,943 4,531,939 4,477,390 4,223,979 96,419 97,888 97,904 143,054 161,855 88,418
65,576 492,499 (337,585) 143,671 247,324 201,395
- - - (14,253) - 16,558
(210,707) (227,211) (239,609) (269,603) (312,994) (317,932) (9,143) (9,559) (9,848) (8,951) (13,415) (9,663)
(57,855) 353,617 (489,138) 8,171 68,517 (21,224)
2,314,101 2,256,246 2,609,863 2,120,725 2,128,896 2,197,413 2,256,246 2,609,863 2,120,725 2,128,896 2,197,413 2,176,189 $ 1,726,866 $ 1,446,768 $ 2,009,218 $ 2,403,043 $ 2,279,977 $ 2,047,790

56.65% 64.34% 51.34% 46.98% 49.08% 51.52%
$ 1,015,240 $ 630,037 $ 647,363 $ 322,533 $ 331,564 $ - 170.09% 229.63% 310.37% 745.05% 687.64% n/a
107
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2025
PARS Retirement Enhancement Plan (REP) Defined Benefit Pension Agent Multiple-Employer Plan Schedule of Contributions - Last 10 Fiscal Years
Fiscal Year Ended June 30, 2016 2017 2018 2019
Actuarially determined contribution $ 134,581 $ 159,218 $ 161,606 $ 159,968 Contributions in relation to the actuarially
determined contribution (127,848) (123,391) (121,576) (98,849) Contribution deficiency (excess) $ 6,733 $ 35,827 $ 40,030 $ 61,119 Covered payroll $ 1,530,005 $ 1,303,994 $ 1,343,114 $ 988,068 Contributions as a percentage of
covered employee payroll 8.36% 9.46% 9.05% 10.00%
Notes to Schedule
Valuation date: 6/30/2015 6/30/2016 6/30/2017 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 6.50%
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.
108
2020 2021 2022 2023 2024 2025
$ 164,367 $ 152,028 $ 152,028 $ 238,078 $ 337,762 $ 392,665 (96,419) (97,888) (97,904) (143,054) (161,855) (88,418) $ 67,948 $ 54,140 $ 54,124 $ 95,024 $ 175,907 $ 304,247 $ 1,015,240 $ 630,037 $ 647,363 $ 322,533 $ 331,564 $ -

9.50% 15.54% 15.12% 44.35% 48.82% n/a
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 109
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2025
Single Employer Other Post-Employment Benefits Plan
Schedule of Changes in Net OPEB Liability and Related Ratios - Last 10 Years* Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total OPEB Liability (1)
Service cost $ 351,865 $ 303,274 $ 328,277 $ 368,174
Interest 197,538 233,437 234,697 239,312
Differences between expected and actual
experience (527,075) - 254,368 -
Changes of assumptions (739,259) (320,279) 345,836 1,192,492 Benefit payments (170,926) (173,450) (167,371) (184,166) Net change in the total OPEB liability (360,782) (484,093) 741,439 1,870,180 Total OPEB liability - beginning 6,664,823 6,304,041 5,819,948 6,561,387 Total OPEB liabilty - ending (a) $ 6,304,041 $ 5,819,948 $ 6,561,387 $ 8,431,567 Plan Fiduciary Net Position
Contribution - employer 170,926 173,450 167,371 184,166 Benefit payments (170,926) (173,450) (167,371) (184,166) 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) $ 6,304,041 $ 5,819,948 $ 6,561,387 $ 8,431,567 Plan fiduciary net position as a percentage of the
total OPEB liability
Covered-employee payroll $ 18,704,543 $ 18,617,151 $ 16,078,058 $ 16,614,061 Net OPEB liability as percentage of covered payroll 33.70% 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 110
6/30/2021 6/30/2022 6/30/2023 6/30/2024
$ 524,816 $ 552,648 $ 178,873 $ 183,881
195,445 203,996 301,717 316,584
(1,097,576) - (10,282) (340,158)
72,300 (3,856,679) - (1,046,433)
(225,411) (215,446) (245,491) (247,667)
567,150 (4,413,057) 224,817 (1,133,793)
8,431,567 8,998,717 4,585,660 4,810,477
$ 8,998,717 $ 4,585,660 $ 4,810,477 $ 3,676,684
225,411 415,446 612,991 447,667
(225,411) (215,446) (245,491) (247,667)
(30,177) - 27,932 88,945
- (862) (1,011) (3,307)
- 168,961 394,421 285,638
- - 168,961 563,382
- 168,961 563,382 849,020
$ 8,998,717 $ 4,416,699 $ 4,247,095 $ 2,827,664

3.68% 11.71% 23.09%
$ 17,232,569 $ 16,464,771 $ 15,911,780 $ 18,977,691

52.22% 26.83% 26.69% 14.90%
111
City of Pacifica
Required Supplementary Information
For the year ended June 30, 2025
Single Employer Other Post-Employment Benefits Plan
Schedule of OPEB Contributions - Last 10 Fiscal Years*
Fiscal Year Ended June 30, 2023 2024 2025
Actuarially determined contribution $ 510,394 - $ $ 525,706 Contributions in relation to the actuarially
determined contribution (612,991) (447,667) (510,696)
Contribution deficiency (excess) $ (612,991) $ 62,727 $ 15,010 Covered employee payroll $ 15,911,780 $ 18,977,691 $ 19,509,066 Contributions as a percentage of
covered employee payroll 3.85% 2.36% 2.62%
Notes to Schedule
Valuation date: 6/30/2022 6/30/2022 6/30/2024
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry-Age Normal, level percent of pay Amortization method Level percent of pay, closed period Amortization period 20 years as of June 30, 2022
Inflation 2.30%
Salary increases 2.80%
Investment rate of return 7.10%
Mortality
* Fiscal year 2024 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.
112
City of Pacifica
Notes to Required Supplementary Information
For the year ended June 30, 2025

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.
113
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes
Property $ 16,851,000 $ 16,851,000 $ 16,714,907 $ (136,093) Sales 5,791,200 5,590,490 5,684,487 93,997
Franchise 1,300,000 1,300,000 1,404,093 104,093
Other 7,208,000 7,148,000 7,931,269 783,269
Licenses and permits 1,294,000 1,294,000 1,288,816 (5,184) Fines and forfeitures 135,000 135,000 128,747 (6,253)
Use of money and property 898,100 898,100 1,046,600 148,500 Intergovernmental 7,166,000 7,598,077 8,931,388 1,333,311 Charges for services 3,222,800 3,222,800 3,911,194 688,394 Recreation programs 817,200 817,200 818,375 1,175
Other 1,963,000 1,963,000 2,711,308 748,308
Total revenues 46,646,300 46,817,667 50,571,184 3,753,517 EXPENDITURES:

General Government
City Council 215,200 215,200 197,946 17,254
City Manager 2,578,386 2,577,386 2,210,383 367,003
Human Resources 1,328,522 1,328,522 1,104,408 224,114
City Attorney 1,346,700 1,346,700 550,467 796,233
Finance 2,379,421 2,379,421 2,285,508 93,913
Non-departmental 1,641,850 1,642,850 1,795,809 (152,959) Public Safety
Police 12,175,197 12,276,197 12,810,554 (534,357)
Fire 7,890,064 7,890,064 9,005,596 (1,115,532)
Community development
Planning 4,439,250 4,741,250 4,270,147 471,103
Public Works
Engineering Services 1,214,798 1,214,798 1,528,990 (314,192) Street and traffic maintenance 1,279,733 1,279,733 1,322,715 (42,982) Building maintenance and improvement 1,020,043 1,020,043 1,063,471 (43,428) Fishing pier/rest stop maintenance 393,115 393,115 251,222 141,893 City parks and playfields 919,902 919,902 770,758 149,144 Budgeted Amounts
(continued)
114
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund, Continued
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Parks, Beaches, and Recreation
Parks, beaches, and recreation 324,457 324,457 423,994 (99,537) Community center programs 489,275 489,275 316,220 173,055 Elementary age recreation 173,191 173,191 233,101 (59,910) Teens and j-teens recreation 63,714 63,714 62,810 904
Adult sports - - 211 (211)
Senior 288,183 288,183 231,142 57,041
Instructional class 146,076 146,076 147,625 (1,549)
Recreation swimming 415,096 415,096 557,416 (142,320)
Swim Team 75,268 75,268 94,485 (19,217)
Special community recreation 117,791 117,791 145,380 (27,589) Special projects 4,209,639 4,209,639 4,129,837 79,802
Capital outlay 125,000 125,000 3,192 121,808
Total expenditures 45,249,871 45,652,871 45,513,387 139,484

REVENUES OVER (UNDER)
EXPENDITURES 1,396,429 1,164,796 5,057,797 3,893,001
OTHER FINANCING SOURCES (USES):

Transfers in 1,422,000 1,422,000 1,422,000 -
Transfers out (1,662,600) (2,014,600) (2,584,600) (570,000) Total other financing sources (uses) (240,600) (592,600) (1,162,600) (570,000) Net change in fund balances $ 1,155,829 $ 572,196 3,895,197 $ 3,323,001 FUND BALANCES:

Beginning of year 18,740,450
End of year $ 22,635,647
Budgeted Amounts
115
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Disaster Accounting
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 1,650,000 $ 1,650,000 $ 1,725,757 $ 75,757
Intergovernmental - - 347,485 347,485
Other - - 2,103,400 2,103,400
Total revenues 1,650,000 1,650,000 4,176,642 2,526,642
EXPENDITURES:

Current:

Public Works 8,655 8,655 - 8,655
Capital outlay - 1,390,000 524,440 865,560
Total expenditures 8,655 1,398,655 524,440 874,215

REVENUES OVER (UNDER)
EXPENDITURES 1,641,345 251,345 3,652,202 3,400,857
OTHER FINANCING SOURCES (USES):

Transfers out (659,800) (659,800) (659,800) -
Total other financing sources (uses) (659,800) (659,800) (659,800) - Net change in fund balances $ 981,545 $ (408,455) 2,992,402 $ 3,400,857 FUND BALANCES:

Beginning of year -
Restatement 7,103,135
Beginning of year, as restated 7,103,135
End of year $ 10,095,537
Budgeted Amounts
116

SUPPLEMENTARY INFORMATION
117
City of Pacifica
Nonmajor Governmental Funds
Year Ended June 30, 2025
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.
118
City of Pacifica
Nonmajor Governmental Funds
Year Ended June 30, 2025
Special Revenue Funds, Continued
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.

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.

General Capital Improvement 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. 119
City of Pacifica
Nonmajor Governmental Funds
Year Ended June 30, 2025
Capital Projects Funds, Continued
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).

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.
120
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121
City of Pacifica
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments $ - $ 37,552 $ 561,058 $ 26,429
Cash and investments with fiscal agents - - - -
Restricted cash and investments - 2,411,057 - -
Receivables:

Accounts 278,996 - - 32,790
Total assets $ 278,996 $ 2,448,609 $ 561,058 $ 59,219

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 130,066 $ - $ 554 $ 8,063 Due to other funds 471,296 - - -
Total liabilities 601,362 - 554 8,063
Fund Balances:

Restricted - 2,448,609 560,504 51,156
Assigned - - - -
Unassigned (322,366) - - -
Total fund balances (322,366) 2,448,609 560,504 51,156
Total liabilities, deferred inflows of
resources and fund balances $ 278,996 $ 2,448,609 $ 561,058 $ 59,219 Special Revenue Funds
Gas Tax Davies Trust
Supplemental Law
Enforcement
Services NPDES Stormwater
122
$ 290,966 $ 138,490 $ 1,036,671 $ 2,124,802 $ 372,513 $ 827,836 - - - - - -
- - - - - -
- - 103,666 - - 95,535
$ 290,966 $ 138,490 $ 1,140,337 $ 2,124,802 $ 372,513 $ 923,371 $ - $ - $ 595,943 $ 7,374 $ - $ 807,411
- - - - - -
- - 595,943 7,374 - 807,411
290,966 138,490 544,394 2,117,428 372,513 115,960
- - - - - -
- - - - - -
290,966 138,490 544,394 2,117,428 372,513 115,960
$ 290,966 $ 138,490 $ 1,140,337 $ 2,124,802 $ 372,513 $ 923,371 Special Revenue Funds
Parking In-Lieu
Street Construction
Fund
Parks, Beaches And
Housing In-Lieu Recreation Housing Sucessor Measure W
123
City of Pacifica
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments $ 1,248,430 $ - $ 2,254,999 $ 100,641 Cash and investments with fiscal agents - - - -
Restricted cash and investments - - - -
Receivables:

Accounts - - 865,635 -
Total assets $ 1,248,430 $ - $ 3,120,634 $ 100,641

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ - $ - $ 412,000 $ 100,641 Due to other funds - 55,867 - -
Total liabilities - 55,867 412,000 100,641
Fund Balances:

Restricted 1,248,430 - - -
Assigned - - 2,708,634 -
Unassigned - (55,867) - -
Total fund balances 1,248,430 (55,867) 2,708,634 -
Total liabilities, deferred inflows of
resources and fund balances $ 1,248,430 $ - $ 3,120,634 $ 100,641 Housing Action
Street Improvement Tree Preservation Fund
Hotel Business
Improvement
Special Revenue Funds
124
$ 100,000 $ 713,216 $ 266,060 $ 448 $ 594,866 $ 336,837 - - - - - -
- - - - - -
824,071 - - - - -
$ 924,071 $ 713,216 $ 266,060 $ 448 $ 594,866 $ 336,837 $ 600,698 $ 1,305 $ - $ - $ - $ -
888,299 - - - - -
1,488,997 1,305 - - - -
- 711,911 266,060 448 594,866 336,837
- - - - - -
(564,926) - - - - -
(564,926) 711,911 266,060 448 594,866 336,837
$ 924,071 $ 713,216 $ 266,060 $ 448 $ 594,866 $ 336,837 General Capital
Improvement
Capital Projects Funds
Highway 1
Improvement
Manor Drive
Improvement
Aircraft Noise
Project Parks and Playfield
Planned Local
Drainage
125
City of Pacifica
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
Debt Service Fund
Total Nonmajor
Governmental
Funds
ASSETS
Cash and investments $ 58,437 $ 151,351 $ 434,273 $ 11,675,875 Cash and investments with fiscal agents - - 245,179 245,179 Restricted cash and investments - - - 2,411,057
Receivables:

Accounts - - - 2,200,693
Total assets $ 58,437 $ 151,351 $ 679,452 $ 16,532,804

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ - $ - $ - $ 2,664,055 Due to other funds - - - 1,415,462
Total liabilities - - - 4,079,517
Fund Balances:

Restricted 58,437 151,351 245,179 10,253,539
Assigned - - 434,273 3,142,907
Unassigned - - - (943,159)
Total fund balances 58,437 151,351 679,452 12,453,287
Total liabilities, deferred inflows of
resources and fund balances $ 58,437 $ 151,351 $ 679,452 $ 16,532,804 Debt Service Fund
Capital Projects Funds
Frontierland
Remediation
Pacifica Library
Fund
126
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127
City of Pacifica
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
REVENUES:

Taxes $ 2,148,630 $ - $ - $ 227,823
Licenses and permits - - - -
Use of money and property - 150,648 48,715 2,295
Intergovernmental 152,428 - 194,663 -
Charges for services - - - 30,758
Other - - - -
Total revenues 2,301,058 150,648 243,378 260,876
EXPENDITURES:

Current:

Public Safety - - 89,677 -
Community development - - - -
Public Works 672,655 - - 147,209
Parks, Beaches, and Recreation - - - -
Capital outlay 1,052,602 - 2,707 99,963
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 1,725,257 - 92,384 247,172

REVENUES OVER (UNDER)
EXPENDITURES 575,801 150,648 150,994 13,704
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (508,000) (100,000) - (146,000)
Total other financing sources (uses) (508,000) (100,000) - (146,000) Net change in fund balances 67,801 50,648 150,994 (132,296) FUND BALANCES:

Beginning of year (390,167) 2,397,961 409,510 183,452
Restatement - - - -
Beginning of year, as restated (390,167) 2,397,961 409,510 183,452 End of year $ (322,366) $ 2,448,609 $ 560,504 $ 51,156
Special Revenue Funds
Gas Tax Davies Trust
Supplemental Law
Enforcement
Services NPDES Stormwater
128
$ - $ - $ 1,281,123 $ - $ - $ 565,461
- - - - - -
25,264 12,025 90,011 184,490 - 71,878
- - 19,000 - - -
- - - - - -
- - 40,452 - - -
25,264 12,025 1,430,586 184,490 - 637,339
- - - - - -
- - - - - -
- - 93,966 - - 193,691
- - - 97,074 - -
- - 973,122 - - 951,022
- - - - - -
- - - - - -
- - 1,067,088 97,074 - 1,144,713
25,264 12,025 363,498 87,416 - (507,374)
- - - - - -
- - (1,250,726) - - -
- - (1,250,726) - - -
25,264 12,025 (887,228) 87,416 - (507,374)
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
$ 290,966 $ 138,490 $ 544,394 $ 2,117,428 $ 372,513 $ 115,960 Special Revenue Funds
Housing In-Lieu Parking In-Lieu
Street Construction
Fund
Parks, Beaches And
Recreation Housing Sucessor Measure W
129
City of Pacifica
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
REVENUES:

Taxes $ 421,210 $ - $ - $ 1,725,757
Licenses and permits - - - -
Use of money and property 108,397 - - -
Intergovernmental - - - -
Charges for services 1,211,783 2,000 - -
Other - - - -
Total revenues 1,741,390 2,000 - 1,725,757
EXPENDITURES:

Current:

Public Safety - - - -
Community development - - - -
Public Works 110 6,700 - -
Parks, Beaches, and Recreation - - - -
Capital outlay 1,948,110 - - 764,993
Debt service: - -
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 1,948,220 6,700 - 764,993

REVENUES OVER (UNDER)
EXPENDITURES (206,830) (4,700) - 960,764
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (107,947) - - -
Total other financing sources (uses) (107,947) - - -
Net change in fund balances (314,777) (4,700) - 960,764 FUND BALANCES:

Beginning of year 1,563,207 (51,167) 7,103,135 1,747,870 Restatement - - (7,103,135) -
Beginning of year, as restated 1,563,207 (51,167) - 1,747,870 End of year $ 1,248,430 $ (55,867) $ - $ 2,708,634
Disaster Accounting
Special Revenue Funds
Street Improvement Tree Preservation
Housing Action
Fund
130
$ - $ - $ - $ - $ - $ - $ -
- 14,302 - - - - -
- 150,714 61,926 23,101 - 51,650 29,247
- 837,624 17,222 - - - -
- - 10,592 - - 302,150 247
- 85,000 - 1,175,526 - - -
- 1,087,640 89,740 1,198,627 - 353,800 29,494
- - - - - - -
- 491 - - - - -
- 184,038 26,337 - - - -
- - - - - - -
- 2,744,710 - 541,389 - 3,392 2,442
-
- - - - - - -
- - - - - - -
- 2,929,239 26,337 541,389 - 3,392 2,442
(1,841,599) - 63,403 657,238 - 350,408 27,052
- 834,800 - 107,947 - - -
- - - - - - -
- 834,800 - 107,947 - - -
(1,006,799) - 63,403 765,185 - 350,408 27,052
- - 648,508 (499,125) 448 244,458 309,785
- 441,873 - - - - -
- 441,873 648,508 (499,125) 448 244,458 309,785
$ - $ (564,926) $ 711,911 $ 266,060 $ 448 $ 594,866 $ 336,837 Special Revenue
Funds
Highway 1
Improvement
Manor Drive
Improvement
Aircraft Noise
Project
Parks and
Playfield
Planned Local
Drainage
Hotel Business
Improvement
General Capital
Improvement
Capital Projects Funds
131
City of Pacifica
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
Debt Service Fund
Total Nonmajor
Governmental
Funds
REVENUES:

Taxes $ - $ - $ - $ 6,370,004
Licenses and permits - - - 14,302
Use of money and property 5,074 13,141 1,141 1,029,717
Intergovernmental - - - 1,220,937
Charges for services - - - 1,557,530
Other - - - 1,300,978
Total revenues 5,074 13,141 1,141 11,493,468
EXPENDITURES:

Current:

Public Safety - - - 89,677
Community development - - - 491
Public Works - 1,787 - 1,326,493
Parks, Beaches, and Recreation - - - 97,074
Capital outlay - - - 9,084,452
Debt service:

Principal - - 1,715,228 1,715,228
Interest and fiscal charges - - 747,262 747,262
Total expenditures - 1,787 2,462,490 13,060,677

REVENUES OVER (UNDER)
EXPENDITURES 5,074 11,354 (2,461,349) (1,567,209)
OTHER FINANCING SOURCES (USES):

Transfers in - - 482,726 1,425,473
Transfers out - - - (2,112,673)
Total other financing sources (uses) - - 482,726 (687,200) Net change in fund balances 5,074 11,354 (1,978,623) (2,254,409) FUND BALANCES:

Beginning of year 53,363 139,997 2,658,075 21,368,958
Restatement - - - (6,661,262)
Beginning of year, as restated 53,363 139,997 2,658,075 14,707,696 End of year $ 58,437 $ 151,351 $ 679,452 $ 12,453,287
Debt Service Fund
Frontierland
Remediation
Pacifica Library
Fund
Capital Projects Funds
132
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 2,062,000 $ 2,062,000 $ 2,148,630 $ 86,630
Intergovernmental 380,000 380,000 152,428 (227,572)
Total revenues 2,442,000 2,442,000 2,301,058 (140,942)
EXPENDITURES:

Current:

Public Works 530,600 582,955 672,655 (89,700)
Capital outlay 1,089,800 1,089,800 1,052,602 37,198
Total expenditures 1,620,400 1,672,755 1,725,257 (52,502)

REVENUES OVER (UNDER)
EXPENDITURES 821,600 769,245 575,801 (193,444)
OTHER FINANCING SOURCES (USES):

Transfers out (508,000) (508,000) (508,000) -
Total other financing sources (uses) (508,000) (508,000) (508,000) - Net change in fund balances $ 313,600 $ 261,245 67,801 $ (193,444) FUND BALANCES:

Beginning of year (390,167)
End of year $ (322,366)
Budgeted Amounts
133
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Davies Trust
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 150,648 $ 150,648
Total revenues - - 150,648 150,648
EXPENDITURES:

Current:

General Government 100,300 100,300 - 100,300
Total expenditures 100,300 100,300 - 100,300

REVENUES OVER (UNDER)
EXPENDITURES (100,300) (100,300) 150,648 250,948
OTHER FINANCING SOURCES (USES):

Transfers out - - (100,000) (100,000)
Total other financing sources (uses) - - (100,000) (100,000) Net change in fund balances $ (100,300) $ (100,300) 50,648 $ 150,948 FUND BALANCES:

Beginning of year 2,397,961
End of year $ 2,448,609
Budgeted Amounts
134
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Services
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 48,715 $ 48,715
Intergovernmental 150,000 150,000 194,663 44,663
Total revenues 150,000 150,000 243,378 93,378
EXPENDITURES:

Current:

Public Safety 19,000 19,000 89,677 (70,677)
Capital outlay 60,100 90,100 2,707 87,393
Total expenditures 79,100 109,100 92,384 16,716

REVENUES OVER (UNDER)
EXPENDITURES 70,900 40,900 150,994 110,094
Net change in fund balances $ 70,900 $ 40,900 150,994 $ 110,094 FUND BALANCES:

Beginning of year 409,510
End of year $ 560,504
Budgeted Amounts
135
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual NPDES Stormwater
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 178,000 $ 178,000 $ 227,823 $ 49,823
Use of money and property - - 2,295 2,295
Charges for services 15,000 15,000 30,758 15,758
Total revenues 193,000 193,000 260,876 67,876
EXPENDITURES:

Current:

Public Works 120,000 120,000 147,209 (27,209)
Capital outlay - - 99,963 (99,963)
Total expenditures 120,000 120,000 247,172 (127,172)

REVENUES OVER (UNDER)
EXPENDITURES 73,000 73,000 13,704 (59,296)
OTHER FINANCING SOURCES (USES):

Transfers out (146,000) (146,000) (146,000) -
Total other financing sources (uses) (146,000) (146,000) (146,000) - Net change in fund balances $ (73,000) $ (73,000) (132,296) $ (59,296) FUND BALANCES:

Beginning of year 183,452
End of year $ 51,156
Budgeted Amounts
136
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing In-Lieu
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 25,264 $ 25,264
Total revenues - - 25,264 25,264
Net change in fund balances $ - $ - 25,264 $ 25,264
FUND BALANCES:

Beginning of year 265,702
End of year $ 290,966
Budgeted Amounts
137
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parking In-Lieu
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 12,025 $ 12,025
Other 20,000 20,000 - (20,000)
Total revenues 20,000 20,000 12,025 (7,975)
Net change in fund balances $ 20,000 $ 20,000 12,025 $ (7,975) FUND BALANCES:

Beginning of year 126,465
End of year $ 138,490
Budgeted Amounts
138
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Construction Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 1,400,000 $ 1,400,000 $ 1,281,123 $ (118,877)
Use of money and property - - 90,011 90,011
Intergovernmental - - 19,000 19,000
Other - - 40,452 40,452
Total revenues 1,400,000 1,400,000 1,430,586 30,586
EXPENDITURES:

Current:

Public Works 203,200 438,050 93,966 344,084
Capital outlay 485,000 485,000 973,122 (488,122)
Total expenditures 688,200 923,050 1,067,088 (144,038)

REVENUES OVER (UNDER)
EXPENDITURES 711,800 476,950 363,498 (113,452)
OTHER FINANCING SOURCES (USES):

Transfers out (1,250,726) (1,250,726) (1,250,726) -
Total other financing sources (uses) (1,250,726) (1,250,726) (1,250,726) - Net change in fund balances $ (538,926) $ (773,776) (887,228) $ (113,452) FUND BALANCES:

Beginning of year 1,431,622
End of year $ 544,394
Budgeted Amounts
139
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parks, Beaches And Recreation
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 184,490 $ 184,490
Total revenues - - 184,490 184,490
EXPENDITURES:

Current:

Parks, Beaches, and Recreation 216,474 216,474 97,074 119,400 Total expenditures 216,474 216,474 97,074 119,400

REVENUES OVER (UNDER)
EXPENDITURES (216,474) (216,474) 87,416 303,890
Net change in fund balances $ (216,474) $ (216,474) 87,416 $ 303,890 FUND BALANCES:

Beginning of year 2,030,012
End of year $ 2,117,428
Budgeted Amounts
140
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Sucessor
For the year ended June 30, 2025
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
141
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure W
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 560,000 $ 560,000 $ 565,461 $ 5,461
Use of money and property - - 71,878 71,878
Total revenues 560,000 560,000 637,339 77,339
EXPENDITURES:

Current:

Public Works 205,000 829,392 193,691 635,701
Capital outlay 657,000 657,000 951,022 (294,022)
Total expenditures 862,000 1,486,392 1,144,713 341,679

REVENUES OVER (UNDER)
EXPENDITURES (302,000) (926,392) (507,374) 419,018
Net change in fund balances $ (302,000) $ (926,392) (507,374) $ 419,018 FUND BALANCES:

Beginning of year 623,334
End of year $ 115,960
Budgeted Amounts
142
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Improvement
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 485,000 $ 485,000 $ 421,210 $ (63,790)
Use of money and property - - 108,397 108,397
Charges for services 170,000 170,000 1,211,783 1,041,783 Total revenues 655,000 655,000 1,741,390 1,086,390
EXPENDITURES:

Current:

Public Works 50,000 515,355 110 515,245
Capital outlay 725,000 725,000 1,948,110 (1,223,110)
Total expenditures 775,000 1,240,355 1,948,220 (707,865)

REVENUES OVER (UNDER)
EXPENDITURES (120,000) (585,355) (206,830) 378,525
OTHER FINANCING SOURCES (USES):

Transfers out (107,947) (107,947) (107,947) -
Total other financing sources (uses) (107,947) (107,947) (107,947) - Net change in fund balances $ (227,947) $ (693,302) (314,777) $ 378,525 FUND BALANCES:

Beginning of year 1,563,207
End of year $ 1,248,430
Budgeted Amounts
143
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Tree Preservation
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ - $ - $ 2,000 $ 2,000
Total revenues - - 2,000 2,000
EXPENDITURES:

Current:

Public Works - - 6,700 (6,700)
Total expenditures - - 6,700 (6,700)

REVENUES OVER (UNDER)
EXPENDITURES - - (4,700) (4,700)
Net change in fund balances $ - $ - (4,700) $ (4,700)
FUND BALANCES:

Beginning of year (51,167)
End of year $ (55,867)
Budgeted Amounts
144
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Action Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 1,650,000 $ 1,650,000 $ 1,725,757 $ 75,757
Total revenues 1,650,000 1,650,000 1,725,757 75,757
EXPENDITURES:

Capital outlay 473,000 885,000 764,993 120,007
Total expenditures 473,000 885,000 764,993 120,007

REVENUES OVER (UNDER)
EXPENDITURES 1,177,000 765,000 960,764 195,764
Net change in fund balances $ 1,177,000 $ 765,000 960,764 $ 195,764 FUND BALANCES:

Beginning of year 1,747,870
End of year $ 2,708,634
Budgeted Amounts
145
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Hotel Business Improvement Fund
For the year ended June 30, 2025
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
146
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Capital Improvement Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Licenses and permits $ 25,000 $ 25,000 $ 14,302 $ (10,698) Use of money and property 70,000 70,000 150,714 80,714
Intergovernmental - - 837,624 837,624
Other 450,000 450,000 85,000 (365,000)
Total revenues 545,000 545,000 1,087,640 542,640
EXPENDITURES:

Current:

Community development - - 491 (491)
Public Works 119,359 119,359 184,038 (64,679)
Capital outlay 1,490,821 1,490,821 2,744,710 (1,253,889) Total expenditures 1,610,180 1,610,180 2,929,239 (1,319,059)

REVENUES OVER (UNDER)
EXPENDITURES (1,065,180) (1,065,180) (1,841,599) (776,419) OTHER FINANCING SOURCES (USES):

Transfers in 734,800 734,800 834,800 100,000
Total other financing sources (uses) 734,800 734,800 834,800 100,000 Net change in fund balances $ (330,380) $ (330,380) (1,006,799) $ (676,419) FUND BALANCES:

Beginning of year 441,873
End of year $ (564,926)
Budgeted Amounts
147
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Highway 1 Improvement
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 61,926 $ 61,926
Intergovernmental - - 17,222 17,222
Charges for services 5,000 5,000 10,592 5,592
Total revenues 5,000 5,000 89,740 84,740
EXPENDITURES:

Current:

Public Works 35,966 35,966 26,337 9,629
Total expenditures 35,966 35,966 26,337 9,629

REVENUES OVER (UNDER)
EXPENDITURES (30,966) (30,966) 63,403 94,369
Net change in fund balances $ (30,966) $ (30,966) 63,403 $ 94,369 FUND BALANCES:

Beginning of year 648,508
End of year $ 711,911
Budgeted Amounts
148
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Manor Drive Improvement
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 23,101 $ 23,101
Other - - 1,175,526 1,175,526
Total revenues - - 1,198,627 1,198,627
EXPENDITURES:

Capital outlay - - 541,389 (541,389)
Total expenditures - - 541,389 (541,389)

REVENUES OVER (UNDER)
EXPENDITURES - - 657,238 657,238
OTHER FINANCING SOURCES (USES):

Transfers in 107,947 107,947 107,947 -
Total other financing sources (uses) 107,947 107,947 107,947 - Net change in fund balances $ 107,947 $ 107,947 765,185 $ 657,238 FUND BALANCES:

Beginning of year (499,125)
End of year $ 266,060
Budgeted Amounts
149
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Aircraft Noise Project
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Net change in fund balances $ - $ - $ - $ -
FUND BALANCES:

Beginning of year 448
End of year $ 448
Budgeted Amounts
150
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parks and Playfield
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 51,650 $ 51,650
Charges for services 100,000 100,000 302,150 202,150
Total revenues 100,000 100,000 353,800 253,800
EXPENDITURES:

Capital outlay - - 3,392 (3,392)
Total expenditures - - 3,392 (3,392)

REVENUES OVER (UNDER)
EXPENDITURES 100,000 100,000 350,408 250,408
Net change in fund balances $ 100,000 $ 100,000 350,408 $ 250,408 FUND BALANCES:

Beginning of year 244,458
End of year $ 594,866
Budgeted Amounts
151
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Planned Local Drainage
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 29,247 $ 29,247
Charges for services 25,000 25,000 247 (24,753)
Total revenues 25,000 25,000 29,494 4,494
EXPENDITURES:

Current:

Public Works 2,100 2,100 - 2,100
Capital outlay - - 2,442 (2,442)
Total expenditures 2,100 2,100 2,442 (342)

REVENUES OVER (UNDER)
EXPENDITURES 22,900 22,900 27,052 4,152
Net change in fund balances $ 22,900 $ 22,900 27,052 $ 4,152 FUND BALANCES:

Beginning of year 309,785
End of year $ 336,837
Budgeted Amounts
152
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Pacifica Library Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 5,074 $ 5,074
Total revenues - - 5,074 5,074
Net change in fund balances $ - $ - 5,074 $ 5,074
FUND BALANCES:

Beginning of year 53,363
End of year $ 58,437
Budgeted Amounts
153
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Frontierland Remediation
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 13,141 $ 13,141
Other 75,000 75,000 - (75,000)
Total revenues 75,000 75,000 13,141 (61,859)
EXPENDITURES:

Current:

Public Works - - 1,787 (1,787)
Total expenditures - - 1,787 (1,787)

REVENUES OVER (UNDER)
EXPENDITURES 75,000 75,000 11,354 (63,646)
Net change in fund balances $ 75,000 $ 75,000 11,354 $ (63,646) FUND BALANCES:

Beginning of year 139,997
End of year $ 151,351
Budgeted Amounts
154
City of Pacifica
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ 500 $ 500 $ 1,141 $ 641
Total revenues 500 500 1,141 641
EXPENDITURES:

Debt service:

Principal 1,811,589 1,811,589 1,715,228 96,361
Interest and fiscal charges 711,352 711,352 747,262 (35,910) Total expenditures 2,522,941 2,522,941 2,462,490 60,451

REVENUES OVER (UNDER)
EXPENDITURES (2,522,441) (2,522,441) (2,461,349) 61,092 OTHER FINANCING SOURCES (USES):

Transfers in 482,726 482,726 482,726 -
Total other financing sources (uses) 482,726 482,726 482,726 - Net change in fund balances $ (2,039,715) $ (2,039,715) (1,978,623) $ 61,092 FUND BALANCES:

Beginning of year 2,658,075
End of year $ 679,452
Budgeted Amounts
155
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156
City of Pacifica
Internal Service Funds
For the Year Ended June 30, 2025
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. 157
City of Pacifica
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
Totals
ASSETS
Current Assets:

Cash and investments $ - $ 2,349,450 $ 207,852 $ 2,557,302 Total current assets - 2,349,450 207,852 2,557,302
Noncurrent:

Capital assets:

Capital assets, not being depreciated 258,774 - - 258,774 Capital assets, being depreciated 11,652,709 - - 11,652,709 Accumulated depreciation (8,592,820) - - (8,592,820)
Net capital assets 3,318,663 - - 3,318,663
Total noncurrent assets 3,318,663 - - 3,318,663
Total assets 3,318,663 2,349,450 207,852 5,875,965

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 80,462 12,432 - 92,894 Interest payable 275 - - 275
Due to other funds 852,334 - - 852,334
Compensated absences - current 14,273 - - 14,273
Claims payable - current - 74,919 - 74,919
Long-term debt - current portion 20,520 - - 20,520
Total current liabilities 967,864 87,351 - 1,055,215
Noncurrent liabilities:

Compensated absences 10,766 - - 10,766
Claims payable - 299,674 - 299,674
Long-term debt 93,480 - - 93,480
Total noncurrent liabilities 104,246 299,674 - 403,920
Total liabilities 1,072,110 387,025 - 1,459,135

NET POSITION
Net investment in capital assets 3,318,663 - - 3,318,663 Restricted - - - -
Unrestricted (1,072,110) 1,962,425 207,852 1,098,167
Total net position $ 2,246,553 $ 1,962,425 $ 207,852 $ 4,416,830 Motor Pool
Fire Equipment
Self Insurance Replacement Fund
158
City of Pacifica
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the year ended June 30, 2025
Totals
OPERATING REVENUES:

Charges for services $ 1,242,400 $ 125,796 $ - $ 1,368,196 Other operating income - 809,097 - 809,097
Total operating revenues 1,242,400 934,893 - 2,177,293
OPERATING EXPENSES:

Personnel services 545,423 101,990 - 647,413
Administration 3,090 - - 3,090
Supplies and materials 673,306 5,650 - 678,956
Insurance expense - 3,357,109 - 3,357,109
Outside contractors - 4,069 - 4,069
Maintenance 199,093 - - 199,093
Insurance claims - 290,553 - 290,553
Depreciation 924,634 - - 924,634
Total operating expenses 2,345,546 3,759,371 - 6,104,917 Operating income (loss) (1,103,146) (2,824,478) - (3,927,624) NONOPERATING REVENUES (EXPENSES):

Gain on sale of capital assets 80,329 - - 80,329
Interest and fiscal charges (3,755) - - (3,755)
Total nonoperating revenues (expenses) 76,574 - - 76,574 Income before contributions and transfers (1,026,572) (2,824,478) - (3,851,050) CONTRIBUTIONS AND TRANSFERS:

Transfers in 1,321,000 2,808,400 133,000 4,262,400
Total contributions and transfers 1,321,000 2,808,400 133,000 4,262,400 Change in net position 294,428 (16,078) 133,000 411,350 NET POSITION:

Beginning of year 1,953,594 1,978,503 74,852 4,006,949
Restatements (1,469) - - (1,469)
Beginning of year, as restated 1,952,125 1,978,503 74,852 4,005,480 End of year $ 2,246,553 $ 1,962,425 $ 207,852 $ 4,416,830 Motor Pool Self Insurance
Fire Equipment
Replacement Fund
159
City of Pacifica
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2025
Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $ 1,242,400 $ 934,893 $ - $ 2,177,293 Payments to suppliers (899,966) (13,024) - (912,990)
Payments for claims - (3,447,992) - (3,447,992)
Payments to and on behalf of employees (600,411) (101,990) - (702,401) Net cash provided by (used in) operating activities (257,977) (2,628,113) - (2,886,090) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund receipts 1,216,611 2,808,400 133,000 4,158,011 Net cash provided by (used in)
noncapital financing activities 1,216,611 2,808,400 133,000 4,158,011 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Purchase of capital assets (603,396) - - (603,396)
Proceeds from sale of capital assets (844,305) - - (844,305) Principal paid on long term debt (19,285) - - (19,285)
Interest paid (3,796) - - (3,796)
Net cash provided by (used in)
capital and related financing activities (1,470,782) - - (1,470,782) Net cash provided by (used in) investing activities - - - - Net cash flows (512,148) 180,287 133,000 (198,861)
CASH AND INVESTMENTS - Beginning of year 512,148 2,169,163 74,852 2,756,163 CASH AND INVESTMENTS - End of year $ - $ 2,349,450 $ 207,852 $ 2,557,302

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

Operating income (loss) $ (1,103,146) $ (2,824,478) $ - $ (3,927,624) Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 924,634 - - 924,634
Increase (decrease) in accounts payable (24,477) (3,305) - (27,782) Increase (decrease) in claims payable - 199,670 - 199,670 Increase (decrease) in compensated absences (54,988) - - (54,988) Net cash provided by (used in) operating activities $ (257,977) $ (2,628,113) $ - $ (2,886,090) Fire Equipment
Motor Pool Self Insurance Replacement Fund
160
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, 2025
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. 161
2016 2017 2018 2019
Governmental activities
Net investment in capital assets $ 56,878,228 $ 56,601,988 $ 59,589,114 $ 67,691,252 Restricted 13,808,573 17,256,904 16,314,865 12,119,087
Unrestricted (39,126,535) (37,204,436) (40,387,356) (33,917,809) Total governmental activities net position 31,560,266 36,654,456 35,516,623 45,892,530 Business-type activities
Net investments in capital assets 15,985,969 15,985,969 15,985,969 15,985,969 Unrestricted 9,672,252 9,812,211 8,612,543 9,935,338
Total business-type activities net position 25,658,221 25,798,180 24,598,512 25,921,307 Primary government
Net investment in capital assets 72,864,197 72,587,957 75,575,083 83,677,221 Restricted 13,808,573 17,256,904 16,314,865 12,119,087
Unrestricted (29,454,283) (27,392,225) (31,774,813) (23,982,471) Total primary government net position $ 57,218,487 $ 62,452,636 $ 60,115,135 $ 71,813,837

CITY OF PACIFICA
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
162
2020 2021 2022 2023 2024 2025
$ 85,689,643 $ 71,472,901 $ 69,492,549 $ 78,197,042 $ 86,677,910 $ 95,522,509 16,166,941 17,244,941 23,043,731 21,039,910 22,301,389 20,349,076 (52,525,473) (42,880,812) (39,248,843) (27,609,394) (38,227,130) (36,148,271) 49,331,111 45,837,030 53,287,437 71,627,558 70,752,169 79,723,314 13,000,844 25,086,051 26,098,298 34,304,949 37,586,813 49,270,531 11,042,102 2,469,140 4,984,562 (1,078,255) (2,853,625) (14,746,814) 24,042,946 27,555,191 31,082,860 33,226,694 34,733,188 34,523,717 98,690,487 96,558,952 95,590,847 112,501,991 124,264,723 144,793,040 16,166,941 17,244,941 23,043,731 21,039,910 22,301,389 20,349,076 (41,483,371) (40,411,672) (34,264,281) (28,687,649) (41,080,755) (50,895,085) $ 73,374,057 $ 73,392,221 $ 84,370,297 $ 104,854,252 $ 105,485,357 $ 114,247,031 163
2016 2017 2018 2019
Expenses
Governmental activities:

General government $ 4,604,299 $ 5,196,272 $ 7,156,065 $ 5,709,625 Public safety 15,859,890 14,310,434 17,194,894 18,784,090 Community Development 1,629,555 1,964,355 2,329,479 2,731,034 Public Works 4,714,402 5,698,841 7,409,411 2,534,274
Parks, Beaches & Recreation 4,329,044 4,938,859 4,963,552 5,392,377 Interest on Long-term Debt 1,667,485 2,442,966 1,896,665 706,918 Total Governmental Activities Expenses 32,804,675 34,551,727 40,950,066 35,858,318 Business-type activities:

Sewer 10,816,732 11,893,663 12,922,459 14,927,925
Beach Parking 532,102 502,373 562,426 536,423
Total Business-Type Activities Expenses 11,348,834 12,396,036 13,484,885 15,464,348 Total Primary Government Expenses 44,153,509 46,947,763 54,434,951 51,322,666 Program Revenues
Governmental activities:

Charges for services:

General Government 126,156 74,899 109,145 77,871
Public Safety 1,043,155 987,163 1,141,995 852,591
Community Development 3,638,027 2,333,796 2,216,407 2,318,892 Public Works 786,000 743,700 743,700 804,110
Parks, Beaches & Recreation 2,220,263 2,231,797 2,486,816 2,588,014 Operating Grants and Contributions 3,923,126 4,124,499 3,541,903 3,853,971 Capital Grants and Contributions 4,912,145 2,458,959 3,759,417 4,606,092 Total Governmental Activities Program Revenues 16,648,872 12,954,813 13,999,383 15,101,541 Business-Type Activities:

Charges for services:

Sewer 12,959,708 12,715,024 13,761,816 14,802,705
Beach Parking 533,952 493,850 543,919 675,689
Total Business-Type Activities Program Revenues 13,493,660 13,208,874 14,305,735 15,478,394 Total Primary Government Program Revenues 30,142,532 26,163,687 28,305,118 30,579,935 Net Revenues (Expenses)
Governmental activities (16,155,803) (21,596,914) (26,950,683) (20,756,777) Business-type activities 2,144,826 812,838 820,850 14,046 Total Net Revenues (Expenses) (14,010,977) (20,784,076) (26,129,833) (20,742,731) General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property taxes 12,445,509 12,679,059 13,780,294 14,731,311 Sales Taxes 1,983,930 2,374,505 2,350,478 2,611,801
Franchise Tax 1,736,620 1,748,266 1,722,343 1,661,717
Other Taxes 3,710,615 3,749,159 4,904,111 5,340,307
Motor vehicle in lieu - unrestricted 3,543,953 3,731,337 3,973,622 4,199,391 Investment earnings (44,457) 743,630 151,887 254,481
Gain on sale of captal assets - - - -
Miscellaneous 1,481,757 846,648 505,076 2,384,463
Transfers 939,559 818,500 98,343 272,500
Total Governmental Activities 25,797,486 26,691,104 27,486,154 31,455,971 Business-type activities:

Investment Earnings 22,337 145,621 442,917 415,825
Miscellaneous - - 204,939 -
Transfers (939,559) (818,500) (98,343) (272,500)
Total Business-Type Activities (917,222) (672,879) 549,513 143,325 Total Primary Government 24,880,264 26,018,225 28,035,667 31,599,296 Changes in Net Position:

Governmental Activities 9,641,683 5,094,190 535,471 10,699,194 Business-type Activities 1,227,604 139,959 1,370,363 157,371 Total Primary Government $ 10,869,287 $ 5,234,149 $ 1,905,834 $ 10,856,565

CITY OF PACIFICA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
164
2020 2021 2022 2023 2024 2025
$ 6,334,939 $ 7,118,502 $ 7,481,370 $ 8,606,518 $ 9,174,410 $ 10,957,811 18,649,308 21,096,292 18,632,393 17,048,970 22,844,505 25,748,245 2,984,755 2,972,473 3,243,238 3,184,443 3,952,730 4,507,251 6,980,889 7,713,891 9,326,203 9,052,066 12,285,498 8,882,635 5,586,758 5,441,842 4,928,418 5,418,584 6,479,952 6,644,401 1,364,573 961,257 969,550 959,687 785,665 676,246
41,901,222 45,304,257 44,581,172 44,270,268 55,522,760 57,416,589 18,794,726 12,884,968 16,258,603 17,983,716 18,317,572 19,945,597 468,537 715,783 620,511 545,599 613,116 507,452
19,263,263 13,600,751 16,879,114 18,529,315 18,930,688 20,453,049 61,164,485 58,905,008 61,460,286 62,799,583 74,453,448 77,869,638 108,746 86,009 135,929 151,145 434,405 617,718
788,489 844,530 773,713 857,381 868,883 791,310
2,100,634 2,673,577 2,520,754 2,463,602 2,225,969 2,564,423 795,505 892,456 1,059,275 1,237,884 1,322,542 2,344,175 1,902,841 831,914 1,859,921 2,672,621 2,652,638 2,794,861 2,892,136 3,491,531 8,598,184 9,802,306 4,374,512 3,996,995 5,683,998 2,305,188 2,374,222 2,179,965 2,524,729 4,838,010 14,272,349 11,125,205 17,321,998 19,364,904 14,403,678 17,947,492 16,591,415 15,760,525 18,965,244 20,158,923 18,575,262 20,299,827 485,883 822,510 559,195 455,028 467,587 413,082
17,077,298 16,583,035 19,524,439 20,613,951 19,042,849 20,712,909 31,349,647 27,708,240 36,846,437 39,978,855 33,446,527 38,660,401 (27,628,873) (34,179,052) (27,259,174) (24,905,364) (41,119,082) (39,469,097) (2,185,965) 2,982,284 2,645,325 2,084,636 112,161 259,860 (29,814,838) (31,196,768) (24,613,849) (22,820,728) (41,006,921) (39,209,237) 13,030,713 15,087,028 14,445,541 15,983,214 19,777,305 20,258,891 2,570,334 2,848,681 3,136,433 3,877,828 5,766,170 5,684,487 1,647,467 1,706,107 1,754,500 1,197,067 1,732,040 1,825,303 8,572,837 9,026,832 10,385,735 14,868,245 9,125,779 9,905,254 4,253,924 2,643,981 4,355,327 5,870,043 3,823,616 4,832,135 341,064 9,364 100,562 659,790 1,481,727 1,894,228
- - - 9,310 212,187 80,329
571,114 204,939 324,910 279,988 630,969 2,335,788
80,000 (250,000) 499,600 500,000 978,700 1,752,800
31,067,453 31,276,932 35,002,608 43,245,485 43,528,493 48,569,215 387,604 296,784 286,486 559,198 1,815,111 1,360,772
- - - - - -
(80,000) 250,000 (499,600) (500,000) (978,700) (1,752,800) 307,604 546,784 (213,114) 59,198 836,411 (392,028)
31,375,057 31,823,716 34,789,494 43,304,683 44,364,904 48,177,187 3,438,580 (2,902,120) 7,743,434 18,340,121 2,409,411 9,100,118 (1,878,361) 3,529,068 2,432,211 2,143,834 948,572 (132,168) $ 1,560,219 $ 626,948 $ 10,175,645 $ 20,483,955 $ 3,357,983 $ 8,967,950 165
2016 2017 2018 2019
General Fund
Non Spendable $ 3,947,951 $ 4,021,024 $ 4,003,847 $3,911,023 Committed - - - -
Assigned 904,240 904,240 1,407,541 3,499,121
Unassigned 4,960,039 5,404,857 7,142,843 7,548,938
Total General Fund 9,812,230 10,330,121 12,554,231 14,959,082 All Other Governmental Funds:

Non Spendable
Restricted 13,808,573 17,256,904 18,219,942 11,784,231
Committed - - - -
Assigned - - - 4,803,631
Unassigned (2,410,718) (3,518,187) (6,077,744) 1,943,978 Total All Other Governmental Funds 11,397,855 13,738,717 12,142,198 18,531,840 Total Governmental Funds $ 21,210,085 $ 24,068,838 $ 24,696,429 $ 33,490,922

CITY OF PACIFICA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
166
2020 2021 2022 2023 2024 2025
$ 3,783,486 $ 3,864,704 $ 3,768,557 3,528,523 8,287 23,188 - 200,755 342,510 185,519 375,291 582,633
4,693,187 4,441,015 4,803,631 5,777,214 5,728,467 5,583,698 8,026,175 7,994,899 7,377,526 11,056,214 12,628,405 16,446,128 16,502,848 16,501,373 16,292,224 20,547,470 18,740,450 22,635,647 89,400
19,732,457 20,533,315 29,424,185 24,995,596 22,301,389 20,349,076 - - - - -
- - - 1,380,849 4,140,951 3,142,907
- (188,655) (619,786) (143,689) (4,631,509) (943,159)
19,732,457 20,344,660 28,804,399 26,322,156 21,810,831 22,548,824 $ 36,235,305 $ 36,846,033 $ 45,096,623 46,869,626 40,551,281 45,184,471 167
2016 2017 2018 2019
Revenues
Taxes $ 22,294 $ 22,411 $ 23,768 $ 25,847
827 812 1,036 838
Fines and forfeitures 150 161 190 193
Use of money and property 1,663 980 311 386
Intergovernmental revenues 7,439 6,605 7,637 6,672
Charges for Services 2,829 2,722 2,778 2,899
Recreation Programs 898 845 989 904
Other Revenues 3,690 4,283 4,662 8,510
Total Revenues: 39,790 38,819 41,371 46,249
Expenditures
Current:
4,332 4,538 4,444 5,160
14,555 15,452 16,192 16,621
1,814 1,907 2,110 2,442
3,707 4,597 4,041 4,622
4,333 4,419 4,158 4,792
Capital outlay 3,393 1,952 6,701 5,603
Debt service:
2,046 1,667 971 1,017
1,686 1,957 1,335 1,339
Bond issuance cost - 293 - -
Total Expenditures 35,866 36,782 39,952 41,596
Excess (deficiency) of revenues
over (under) expenditures 3,924 2,037 1,419 4,653
Other Financing Sources (Uses)
Transfers in 2,614 6,191 2,412 13,059
Transfers out (2,327) (5,665) (3,203) (13,721)
Refunded to debt escrow agent - (16,794) - -
Issuance of Debt - 17,092 - -
Total other financing sources (uses) 287 824 (791) (662) Net change in fund balances $ 4,211 $ 2,861 $ 628 $ 3,991 Debt service as a percentage of
Noncapital expenditures 11.4% 11.1% 6.50% 7.4%

CITY OF PACIFICA
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(in thousands)
Principal retirement
Interest and Other Chares
Licenses and permits
General government
Public safety
Community Development
Public Works
Parks, Beaches & Recreation
168
2020 2021 2022 2023 2024 2025
$ 27,399 $ 30,227 $ 31,398 $ 37,731 $ 38,422 $ 39,831
969 1,197 1,079 1,107 1,477 1,303
182 174 168 198 125 129
338 103 224 746 1,655 2,076
8,312 5,102 11,223 12,552 8,079 10,500
2,358 3,588 3,700 3,378 3,228 5,469
495 373 456 688 715 818
5,411 1,880 3,577 4,975 2,978 6,116
45,464 42,644 51,825 61,375 56,679 66,241
5,628 6,094 7,243 9,131 7,007 8,145
16,352 17,165 18,658 19,959 20,228 21,906
2,579 2,432 3,073 3,463 3,639 4,271
5,917 6,841 8,143 7,818 8,717 6,264
4,886 4,433 4,811 5,838 5,921 6,439
1,585 2,535 3,163 10,700 9,910 9,612
111 611 1,597 1,547 1,634 1,715
1,272 941 947 912 844 747
212 - - - - -
38,542 41,052 47,635 59,368 57,900 59,099
6,922 1,592 4,190 2,007 (1,221) 7,143
3,451 3,821 8,292 11,445 7,811 2,847
(3,341) (4,211) (7,938) (11,678) (9,245) (5,357)
8,436 - - - - -
(7,920) - 4,000 - - -
626 (390) 4,354 (233) (1,434) (2,510)
$ 7,548 $ 1,202 $ 8,544 $ 1,773 $ (2,656) $ 4,633

3.9% 4.2% 5.8% 5.0% 5.1% 5.0%
169

CITY OF PACIFICA

TAXABLE SALES BY CATEGORY
LAST TEN YEARS (IN $000's)
Categories 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Food Stores 23,543$ 24,727$ $ 27,139 $ 27,696 $ 28,115 $ 30,462 $ 27,471 28,765$ $ 28,662 $ 28,928 Eating & Drinking Places 49,770 50,616 53,219 56,013 60,071 45,853 63,241 73,506 73,468 74,637 Building Materials 3,933 3,839 4,173 3,900 4,210 5,955 5,544 5,163 5,333 4,647 Auto Dealers & Supplies 4,482 4,532 4,804 4,778 5,134 4,728 4,758 5,131 5,209 5,015 Service Stations 44,660 38,899 42,139 46,839 44,942 29,641 39,074 49,439 44,525 43,092 Other Retail Stores 39,861 42,987 43,499 44,111 45,830 52,880 56,624 65,325 63,595 57,936 All Other Outlets 40,297 48,841 50,643 55,023 61,978 75,620 77,040 83,374 80,198 77,947 Total $ 206,546 $ 214,441 $ 225,616 $ 238,360 $ 250,280 $ 245,139 $ 273,752 $ 310,703 $ 300,990 $ 292,202 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 Companies ACFR reports
170

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
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%
2025 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 1/2 cent sales tax for Meaure Y effective 4/1/2023 Source: California 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.
171

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 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 2024-2025 39,830,517 1,303,118 128,747 2,076,317 10,499,810 5,468,724 6,934,061 66,241,294 % Change
2016-2025 78.66% 57.54% -13.92% 24.84% 41.14% 93.33% 51.12% 66.47% 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: City's Governmental Funds Financial Statements section 172

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 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 2024-2025 4,401,856 4,259,781 5,835 3,960 5,599 36,112 4,405,816 4,265,379 41,947 8,713,142 50,729 140,274 191,003 8,522,139 % Change
2015-2024 78.93% 51.29% 168.63% -3.61% -74.86% 16.30% 78.80% 50.30% 26.26% 63.31% -8.63% 113.08% 57.39% 63.45% (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 Companies report from San Mateo County Assessor 2024/25 Combined Tax Rolls.

Exemptions/Net Totals
173

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 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%
2025 1.0000% 0.0731% 0.1316% 0.0178% 1.2225% 0.1938%
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
174

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 WC LANDS END LLC $ 97,465 1 1.15%
GRI FAIRMONT LLC 42,084 2 0.50%
AIMCO ESPLANADE AVENUE APARTMENTS LLC 41,358 3 0.49% $ 21,730 5 0.39% LINDA MAR SHOPPING CENTER, LLP 41,221 4 0.49% 34,228 2 0.62% PACIFICA HORIZONS WEST LP 40,086 5 0.47% 17,067 7 0.31% CRP/PSE SEASIDE PACIFICA OWNER 28,329 6 0.33% 22,250 4 0.40% NVI RANI INC 24,282 7 0.29%
2400 SKYLINE BLVD LLC 19,498 8 0.23%
FAIRMONT PACIFICA APARTMENTS LLC 17,980 9 0.21%
BAY APARTMENT COMMUNITIES, INC. 16,951 10 0.20% 14,605 9 0.26% FPA BAF LANDS END ASSOCIATES LP 49,359 1 0.89%
PK III FAIRMONT SHOPPPING CENTER 29,716 3 0.54%
MARYMOUNT SUMMIT ,LLC 19,910 6 0.36%
TAJIRIAN INVESTMENTS LLC 16,800 8 0.30%
OCEANVIEW HOUSING ASSOCAITES LLC 14,281 10 0.26%
Total $ 369,253 4.36% $ 239,946 4.33%
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
2024/25 2015/16
175

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
2016 $ 10,090 $ 10,090 100.00% $ - $ 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%
2025 16,191 16,191 100.00% 0 16,191 100.00%
% Change 2016-2025 60% 60% 60%
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: County of San Mateo Controller's Office
Fiscal Year of the Levy
Collected within the
Total Collections to Date
176

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
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
2025 5,317,320 3,875,000 12,628,551 21,820,871
Sources: City's Annual Comprehensive Financial Reports 2016-2025 Governmental Activities
177

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 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% 2025 25,082,099 682,681 23,338,497 49,103,277 70,924,148 37,217 1,906 70,499 0.099% Sources: City's Annual Comprehensive Financial Reports
Business-Type Activities
178

CITY OF PACIFICA

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2025
$8,521,581,655
Debt Outstanding
6/30/25
%
Applicable
(1)
City Share of
Debt 06/30/25
Overlapping Tax and Assessment Debt:

San Mateo Community College District $ 655,171,697 2.617% 17,145,843 $ Jefferson Union High School District 379,274,400 27.414% 103,974,295 Jefferson School District 144,535,000 1.192% 1,722,857
Pacifica Elementary School District (Laguna Salada) 61,876,494 99.891% 61,809,049 Total Overlapping Tax and Assessment Debt $ 184,652,044 Direct and Overlappig General Fund Debt:

San Mateo County General Fund Obligations $ 530,970,772 2.617% 13,895,505 $ San Mateo County Board of Education Certificates of Participation 5,330,000 2.617% 139,486 San Mateo County Flood Control and Sea LRR District General Fund Obligations 12,200,000 0.519% 63,318 Jefferson Union High School District Certificates of Participation 46,845,000 27.414% 12,842,088 City of Pacifica Certificates of Participation 12,628,551 100.000% 12,628,551 2021 Civic Center Financed Purchase 3,875,000 100.000% 3,875,000 City of Pacifica Pension Obligation Bonds 5,317,320 100.000% 5,317,320 San Mateo County Mosquito and Vector Control District General Fund Obligations 3,185,295 2.617% 83,359 Total Direct and Overlapping General Fund Debt $ 48,844,628 Overlapping Tax Increment Debt (Successor Agency): $ 715,000 100.000% 715,000 Total Direct Debt $ 21,820,871
Total Overlapping Debt $ 212,390,801
Combined Total Direct and Overlapping Debt $ 234,211,672 (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 ……………………............. 2.17% Total Direct Debt ($21,820,871)) ……………………………………............. 0.26% Combined Total Debt …………………………………………………........... 2.75% Ratio to Redevelopment Successor Agency Incremental Valuation ($69,022,660.00):

Total Overlapping Tax Increment Debt …………………………… 1.04%
Source: California Municipal Statistics, Inc.

Ratios to 2024-2025 Assessed Valuation:

FY2024-25 Assessed Valuation:
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CITY OF PACIFICA

LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS (IN $000's)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Assessed Valuation $ 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 $8,521,582 Debt Limit 197,605 208,870 222,539 235,183 249,244 261,993 273,108 291,980 306,831 319,559 Total Net Debt
Applicable to Limit - - - - - - - - - -
Legal Debt Margin 197,605 208,870 222,539 235,183 249,244 261,993 273,108 266,543 306,831 319,559 Total Net Debt
applicable to the limit
as a percentage of
debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Notes:

Debt Limit is 3.75% of Assessed Value.

Source: City of Pacifica and San Mateo County Assessor
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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 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 3,485 419 3,904 1.75
2025 20,300 12,191 8,109 3,485 411 3,896 2.08
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's Annual Comprehensive Financial Reports
Enterprise Fund Bonds
181

CITY OF PACIFICA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
Per
Calendar Median Capita
Year Personal Personal Unemployment
Ending Population Income Income Rate %
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
2025 37,217 n/a 70,499 3.8
Source: HdL Companies, U.S. Census Bureau, California 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 1.77% 349 1 1.57%
City of Pacifica 330 2 1.55% 192 3 0.86%
Little Giant Building Maintenance, Inc. 170 3 0.80%
Fashion Apparel Service Transportation Inc. 105 4 0.49% Jefferson Union High School District 104 5 0.49% 90 4 0.41% The Roman Catholic Archbishop of San Francisco 79 6 0.37% Real Food Company, Inc. 75 7 0.35%
Mac Duff Restaurants Inc. 53 8 0.25%
Oil Changer, Inc. 50 9 0.23% 0.00%
Cal-Pacific Construction, Inc. 50 10 0.23%
Pyramid Alternatives Inc 46 11 0.22%
United States Postal Service 42 12 0.20%
Mercy Services Corporation 41 13 0.19%
Pacifica Care Center, Inc. 40 14 0.19%
Motista 36 15 0.17%
Safeway (3) 227 2 1.02%
Starbucks (3) 50 5
Recology of the Coast 33 7 0.15%
Rite Aid 37 6 0.17%
Ross Dress for Less 30 8 0.14%
North Coast County Water District 20 9 0.09%
Totals 1,598 7.50% 1,028 4.63%
Total City Labor Force 21,300 22,200
Notes:

Source: Information from California Employment Development Department 2025 2016
183

CITY OF PACIFICA

FULL TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Government
Administration 7 7 7 8 7 6 6 6.5 6.5 7.5
Finance 6.5 7.5 6.5 7.5 8 8 9 13 14 15
Parks, Beaches and Recreation 65.5 53 51 56 55 55 56 32.5 32.5 33.5 Planning & Building 7 7 7 7 8 7 8 8.75 9.75 10.75
Public Works 24 28 29 27 26 26 29 32 35.5 40
Police
Officers 29 33 37 33 34 35 33.5 35 36 38
Civilians 3 4 4 4 4 4 4 4.5 5 5
Fire
Firefighters 25 25 23 25 25 26 25 25 25 25
Civilians 1 1 1 1 1 1 1 1 1 1
Wastewater Division 24 26 27 27 25 25 25 25 25 25
Authorized Full-Time Positions 192 191.5 192.5 195.5 193 193 196.5 183.25 190.25 200.75 Notes:

Administration covers City Manager's office positions
Finance covers financial and administrative service that includes finance, HR and IT Source: City of Pacifica FY2025 Budget Book - Master Position Control 184

CITY OF PACIFICA

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Government
Building Permits Issued 1,682 1,921 1,811 1,413 1,447 1,538 1,620 1,526 1,451 1,489 Building Inspections Conducted 4,093 4,610 4,630 5,143 5,145 3,966 4,455 4,115 4,012 3,511 Police
Physical Arrests 864 702 816 890 747 693 680 861 742 635 Parking Violations 4,700 5,099 6,257 4,942 4,065 5,169 4,080 3,240 2,444 2,574 Traffic Violations 1,763 2,090 2,718 3,435 2,243 1,723 2,415 2,392 1,605 1,233 Fire
Emergency Responses 3,215 2,977 3,142 3,167 2,882 2,943 3,225 3,627 3,447 2,031 Fires Extinguished 88 77 66 59 43 46 31 32 37 43
Inspections 955 730 783 862 513 308 929 802 836 799
Other Public Works
Street Re-surfacing (miles) 0.00 0.00 0.51 1.55 0.48 0.50 11.00 8.37 8.35 8.13 Potholes Repaired 1,125 1,200 1,200 500 1,000 500 700 700 800 700 Parks, Beaches & Recreation estimated estimated estimated estimated estimated estimated estimated estimated estimated estimated Community Center Admissions 89,654 98,480 92,000 100,563 126,024 2,100 50,650 56,700 66,250 88,500 Enterprise Fund WWTP
Residential Sewer Accounts 11,480 11,470 11,479 11,913 11,916 11,923 11,920 11,916 11,210 12,552 Commercial Sewer Accounts 345 342 343 350 349 349 353 375 348 731 Total Accounts 11,825 11,812 11,822 12,263 12,265 12,272 12,273 12,291 11,558 13,283 New Connections 10 17 10 7 2 8 1 2 - 4
Avg Daily Sewage Treatment (Gallons) 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 2,855,000 Source: Various City Departments
185

CITY OF PACIFICA

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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) 165 104 104 104 104 104 104 104 104 114 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
186

CITY OF PACIFICA

SEWER RATES

LAST TEN FISCAL YEARS
Fiscal Minimum Rate per
Year Ended Annual 100
June 30 Charge Cubic Feet
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
2025 1,001.24 20.85912
Notes:

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

Source: City Records
187