Paso Robles City Council
February 4, 2025

101
$ 500,553 $ 29,780,631 $ 36,711,108 $ 112,319,507
- 2,080,103 428,669 11,031,111
- - - 4,138,350
3,030 - 930,444 2,745,245
- - 3,162,489 6,597,213
- - - 2,620
- - - 254,297
- - - 2,594,313
503,583 31,860,734 41,232,710 139,682,656
1,036,551 - 88,363 1,124,914
1,036,551 - 88,363 1,124,914
$ 1,540,134 $ 31,860,734 $ 41,321,073 $ 140,807,570
$ - $ 1,925,357 $ 294,436 $ 6,066,705
- - 3,836 712,923
1,036,551 - 88,363 1,124,914
- - - 6,507,233
1,817,652 - 153,222 1,970,874
2,854,203 1,925,357 539,857 16,382,649
- - - 3,888,920
- - 3,871,311 8,653,027
- - 3,871,311 12,541,947
- - - 3,098,040
- - 37,138,643 37,138,643
- - - 20,592,455
- 29,935,377 - 34,882,466
(1,314,069) - (228,738) 16,171,370
(1,314,069) 29,935,377 36,909,905 111,882,974
$ 1,540,134 $ 31,860,734 $ 41,321,073 $ 140,807,570
Total
Governmental
Funds
Specific Plans
Fund
Capital Projects
Fund
Nonmajor
Governmental
Funds
Attachment 1

THIS PAGE IS INTENTIONALLY LEFT BLANK
Attachment 1

City of El Paso de Robles

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
June 30, 2024
Total fund balances - governmental funds $ 111,882,974
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets at historical cost $ 378,930,925
Accumulated depreciation (146,856,511)
Right-to-use leased assets 1,054,110
Accumulated amortization (793,544)
Net capital assets 232,334,980
7,528,113
(479,452)
Compensated absences 3,155,312
Financed purchases 71,858
Subscription liability 227,285
Leases payable 42,401
General obligation bonds 7,623,991
Loans payable 1,597,737
Accrued landfill closure costs 4,859,578
Net OPEB liability 3,984,926
Net pension liability 43,955,382
Total long-term liabilities (65,518,470)
195,683
12,562,797
8,885,361
Total net position - governmental activities $ 307,391,986 Internal service funds are used to charge activities involved with rendering services to departments within the City.

Assets and liabilities of the internal service funds not mentioned above are:

Capital assets are not current financial resources and, therefore, are not reported in the governmental funds. In the Statement of Net Position, all assets, including capital and right-to-use leased assets, and accumulated depreciation and amortization are reported.

Certain revenues in the governmental receivables are unavailable because they cannot be used to meet current financial obligations. In the Statement of Net Position, revenues are recognized when earned.

Interest expense on long-term debt is recognized in the period in which it matures and is paid in governmental funds.

However, in the Statement of Net Position, it is recognized in the period that it is incurred.

Long-term liabilities are applicable to future periods and, therefore, are not reported in governmental funds. In the Statement of Net Position, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities consist of:

The deferred loss on refunding of bonds is applicable to future periods and, therefore, is not reported in governmental funds. In the Statement of Net Position, the deferred loss on refunding of bonds is reported.

Deferred outflows and inflows of resources relating to pensions and other post-employment benefits are applicable to future periods and, therefore, are not reported in governmental funds. In the Statement of Net Position, deferred outflows and inflows of resources related to pensions and other post-employment benefits are reported. The difference between deferred outflows of resources of $ 17,037,184 and deferred inflows of $ 4,474,387 is:

The notes to financial statements are an integral part of this statement.

Attachment 1

City of El Paso de Robles

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Governmental Funds
For the Fiscal Year Ended June 30, 2024
REVENUES 103 111
Taxes $ 48,964,531 $ 13,509,741 $ -
Licenses and permits 1,423,225 - -
Fines and forfeitures 189,950 - -
Use of money and property 4,248,234 731,176 233,852
Intergovernmental revenues 663,216 394,030 1,291,956
Charges for current services 3,036,047 - -
Other revenues 210,130 4,096 -
Total revenues 58,735,333 14,639,043 1,525,808

EXPENDITURES
Current:

Ge General government 8,944,912 - -
Pu Public safety 24,369,656 7,145,509 -
Hi Highways and streets 5,780,566 143,005 -
SaSanitation 640,730 - -
He Health and welfare - - -
CuCulture-recreation 7,095,926 - -
Ur Urban redevelopment and housing (142,435) - 388,500
Ec Economic development and assistance 668,530 - -
Capital outlay 529,089 87,508 -
Debt service:

IntInterest 54,996 - -
Pr Principal 150,473 - -
Ag Agent fees - - -
Total expenditures 48,092,443 7,376,022 388,500
10,642,890 7,263,021 1,137,308

OTHER FINANCING SOURCES (USES)
Transfers in 919,475 - -
Transfers out (10,783,494) (1,259,818) (985,204)
Total other financing sources (uses) (9,864,019) (1,259,818) (985,204) Net change in fund balances (deficits) 778,871 6,003,203 152,104 Fund balances (deficits) - July 1 24,828,331 14,589,252 - Fund balances (deficits) - June 30 $ 25,607,202 $ 20,592,455 $ 152,104 Excess (deficiency) of revenues over (under)
expenditures
General Fund
Measure J-20
Supplemental
Sales Tax Fund
American Rescue
Plan Act Fund
The notes to financial statements are an integral part of this statement.

Attachment 1

101
$ - $ - $ 4,372,101 $ 66,846,373
- - - 1,423,225
- - - 189,950
21,822 - 1,626,380 6,861,464
- 5,122,722 154,961 7,626,885
39,055 - 3,530,031 6,605,133
1,215 584,838 - 800,279
62,092 5,707,560 9,683,473 90,353,309
- 245,557 2,250 9,192,719
- - - 31,515,165
- 855,452 646,561 7,425,584
- - 103,975 744,705
- - 15,512 15,512
- 328,593 2,058,257 9,482,776
- - - 246,065
- - - 668,530
- 9,351,780 250,970 10,219,347
-
- - 715,391 770,387
- - 1,536,109 1,686,582
- - 1,780 1,780
- 10,781,382 5,330,805 71,969,152
62,092 (5,073,822) 4,352,668 18,384,157
- 11,989,467 1,239,689 14,148,631
- - (192,551) (13,221,067)
- 11,989,467 1,047,138 927,564
62,092 6,915,645 5,399,806 19,311,721
(1,376,161) 23,019,732 31,510,099 92,571,253
$ (1,314,069) $ 29,935,377 $ 36,909,905 $ 111,882,974
Capital Projects
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Specific Plans
Fund
Attachment 1

City of El Paso de Robles

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2024
Total net change in fund balances - governmental funds $ 19,311,721 Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlay $ 11,861,460
Depreciation (7,530,468)
Amortization (281,638)
Total 4,049,354
47,528
301,381
1,984,313
(65,231)
(178,720)
(306,828)
230,545
Continued
Landfill closure and post-closure costs reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in the governmental funds.

In governmental funds, other post-employment benefit costs are recognized when employer contributions are made.

In the Statement of Activities, other post-employment benefit costs are recognized when incurred. This amount is the net change in net OPEB liability and deferred inflows of resources.

In governmental funds, compensated absences are measured by the amount of financial resources used (essentially the amount paid). In the Statement of Activities, these items are measured by the amounts earned during the fiscal year. This fiscal year, compensated absences earned exceeded the amounts used by:

In governmental funds, capital outlays are reported as expenditures. However, in the Statement of Activities, the cost of those assets and right-to-use leased assets are allocated over their estimated useful lives as depreciation or amortization expense. This is the amount by which capital outlay and capital contributions exceed depreciation/amortization expense during the current fiscal period.

In governmental funds, loan receivables and accrued interest are unavailable because they cannot be used to meet current financial obligations. In the Statement of Activities, revenues are recognized when earned. This amount is the net change in loan proceeds and accrued interest and the repayments made in the fiscal year.

In governmental funds, interest on long-term debt is recognized in the period that it becomes due. In the Statement of Activities, it is recognized in the period that it is incurred. Unmatured interest owed at the end of the period, less matured interest paid during the period but owing from the prior period was:

In governmental funds, proceeds and repayments of long-term debt are reported as other financing sources and uses, respectively. In the Statement of Activities, proceeds and repayments of long-term debt are reported as increases and decreases in liabilities, respectively. This is the amount of repayments of debt made in the period.

In governmental funds, the impacts of premiums, discounts, and losses on refunding of debt are reported at the issuance of debt. In the Statement of Activities, those amounts are amortized over the life of the debt. This amount represents the amortization of a loss on refunding.

The notes to financial statements are an integral part of this statement.

Attachment 1

City of El Paso de Robles

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES (continued) For the Fiscal Year Ended June 30, 2024
$ (133,242)
280,249
2,798,273
Change in net position - governmental activities $ 28,319,343 Concluded
In governmental funds, pension costs are recognized when employer contributions are made. In the Statement of Activities, pension costs are recognized when incurred. This amount is the net change in net pension liability, deferred outflows of resources and deferred inflows of resources.

In governmental funds, lease expenses are recognized when payments are made. In the Statement of Activities, payments are reported as decreases in leases payable. This is the net amount of repayments of debt made and incurred in the period.

Internal service funds are used to charge the cost of activities involved in rendering services to departments within the City. This amount is the net revenue of the internal service funds is reported with governmental activities.

The notes to financial statements are an integral part of this statement.

Attachment 1

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Attachment 1

PROPRIETARY FUNDS FINANCIAL STATEMENTS
The City maintains two different types of Proprietary Funds: Enterprise Funds and Internal Service Funds. Enterprise Funds are used when the City charges customers for the services it provides, whether to outside customers or to other units of the City. An internal service fund is used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government. Both Enterprise and Internal Service Funds are generally reported as proprietary funds. Proprietary fund statements, like the government-wide statements, provide short-term and long-term financial information about the activities the City operates like businesses, such as utility services which are operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The concept of major funds established by GASB Statement No. 34 extends to proprietary funds. The City has identified the funds below as major proprietary funds in the current fiscal year. GASB Statement No. 34 does not provide for the disclosure of budget versus actual comparisons regarding proprietary funds.

For the Proprietary Fund Financial Statements, the internal service funds are combined in a single column. Individual internal service funds may be found in the Individual Fund Financial Statements and Schedules.

Water Fund
This fund is used to account for the operation and maintenance of the City's water treatment, production, transmission, and distribution system, and includes accounting for water connections and the Nacimiento water project.

Wastewater Fund
This fund is used to account for the operation and maintenance of the City's sewer collection and treatment system as well as sewer connections.

Airport Fund
This fund is used to account for the operation, maintenance, and capital improvements of the City's airport.

Transit Fund
This fund is used to account for the operation and maintenance of the City's dial-a-ride and fixed route transit systems funded from Transportation Development Act funds.

Parking Fund
This fund is used to account for the operation and maintenance of the City’s Downtown Parking program.

Attachment 1

City of El Paso de Robles

STATEMENT OF NET POSITION
Proprietary Funds
June 30, 2024
Water Wastewater Airport
ASSETS
Current assets:

Ca Cash and investments $ 17,617,662 $ 10,608,044 $ 2,874,871 Ac Accounts receivable 2,066,286 1,400,564 43,089
Int Interest receivable 145,159 278,235 17,441
Pr Prepaid items 1,721 1,721 -
DeDeposits 218 - -
InvInventory 449,197 - -
0 Total current assets 20,280,243 12,288,564 2,935,401
0 Noncurrent assets:

Le Leases receivable - - 13,605,259
Lo Loans receivable 339,949 579,457 -
Capital assets:

NoNoNondepreciable capital assets 4,143,206 10,390,795 10,601,257 Ne Net depreciable capital assets 38,276,700 70,269,362 5,486,023 Ne Ne Net intangible right-to-use assets - - -
0 Total noncurrent assets 42,759,855 81,239,614 29,692,539 Total assets 63,040,098 93,528,178 32,627,940

DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits (OPEB) 22,436 24,359 3,016 Deferred pensions outflows 1,203,320 960,798 109,367
Total deferred outflows of resources 1,225,756 985,157 112,383

LIABILITIES
Current liabilities:

Ac Accounts payable 1,818,698 555,996 196,408
Ac Accrued payroll expenses 59,006 60,941 8,785
Ad Advances payable - - -
Int Interest payable 41,135 504,642 4,490
Cu Customer deposits 236,111 - -
Un Unearned revenue - - 26,838
Co Compensated absences due within one year 42,907 43,989 5,959 Su Subscriptions due within one year - - -
De Debt due within one year 506,627 2,884,055 37,493
Total current liabilities 2,704,484 4,049,623 279,973
Noncurrent liabilities:

Co Compensated absences 128,721 131,975 17,874
Su Subscription liability - - -
Ne Net OPEB liability 429,193 465,996 57,690
Ne Net pension liability 4,313,503 3,213,800 392,043
De Debt due after one year 5,266,712 40,193,087 258,980 Total noncurrent liabilities 10,138,129 44,004,858 726,587 Total liabilities 12,842,613 48,054,481 1,006,560
Enterprise Funds
The notes to financial statements are an integral part of this statement.

Attachment 1

Transit Parking Total
207 238
$ 5,576,081 $ 1,239 $ 36,677,897 $ 10,388,756
- 8,556 3,518,495 146,184
33,768 4 474,607 63,058
- - 3,442 631,091
- 250 468 -
- - 449,197 -
5,609,849 10,049 41,124,106 11,229,089
- - 13,605,259 -
- - 919,406 -
- - 25,135,258 660,240
714,884 115,678 114,862,647 8,231,787
- - - 47,051
714,884 115,678 154,522,570 8,939,078
6,324,733 125,727 195,646,676 20,168,167
- - 49,811 7,279
- - 2,273,485 414,597
- - 2,323,296 421,876
- 70,126 2,641,228 127,274
- - 128,732 26,798
- 623,439 623,439 -
- 7,311 557,578 2,406
- - 236,111 -
- - 26,838 -
- 995 93,850 26,112
- - - 24,648
- - 3,428,175 84,178
- 701,871 7,735,951 291,416
- 2,982 281,552 78,337
- - - 17,753
- - 952,879 148,204
- - 7,919,346 1,484,517
- - 45,718,779 -
- 2,982 54,872,556 1,728,811
- 704,853 62,608,507 2,020,227
Continued
Total Internal
Service Funds
Enterprise Funds
Attachment 1

City of El Paso de Robles
STATEMENT OF NET POSITION (continued)
Proprietary Funds
June 30, 2024
Water Wastewater Airport

DEFERRED INFLOWS OF RESOURCES
Deferred leases $ - $ - $ 12,494,631
Deferred OPEB 348,314 378,181 46,819
Deferred pensions inflows 38,573 30,799 3,506
Total deferred inflows of resources 386,887 408,980 12,544,956

NET POSITION
Net investment in capital assets 36,646,567 37,583,015 15,790,807 Restricted for debt service - 2,647,831 -
Unrestricted 14,389,787 5,819,028 3,398,000
Total net position $ 51,036,354 $ 46,049,874 $ 19,188,807 Net position of business-type activities
Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time
Enterprise Funds
The notes to financial statements are an integral part of this statement.

Attachment 1

Transit Parking Total
$ - $ - $ 12,494,631 $ -
- - 773,314 120,276
- - 72,878 13,275
- - 13,340,823 133,551
714,884 115,678 90,850,951 8,812,499
- - 2,647,831 -
5,609,849 (694,804) 28,521,860 9,623,766
$ 6,324,733 $ (579,126) 122,020,642 $ 18,436,265
3,830,711
$ 125,851,353
Concluded
Total Internal
Service Funds
Enterprise Funds
Attachment 1

City of El Paso de Robles

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Water Wastewater Airport

OPERATING REVENUES
Charges for current services $ 17,765,029 $ 13,513,925 $ 222,270 Rents and leases - - 1,115,682
Operating grants and contributions 148,438 99,346 -
Other revenues 16,918 26,408 1,069
Total operating revenues 17,930,385 13,639,679 1,339,021

OPERATING EXPENSES
Salaries and benefits 3,409,717 3,140,784 404,385
Maintenance and operations 9,665,674 3,493,456 774,436
Depreciation and amortization 2,111,775 3,849,928 447,830 Total operating expenses 15,187,166 10,484,168 1,626,651 Operating income (loss) 2,743,219 3,155,511 (287,630)

NONOPERATING REVENUES (EXPENSES)
Taxes - - 89,898
Investment income (loss) 776,339 428,177 507,490
Gain/(loss) on disposal of capital asset - - -
Interest expense (171,583) (790,445) (12,882)
604,756 (362,268) 584,506
3,347,975 2,793,243 296,876
Capital grants and contributions - 3,500,000 465,388
Transfers out (483,980) (373,357) (44,949)
Change in net position 2,863,995 5,919,886 717,315
Net position - July 1 48,172,359 40,129,988 18,471,492
Net position - June 30 $ 51,036,354 $ 46,049,874 $ 19,188,807 - - -
Change in net position of business-type activities
Total nonoperating revenues (expenses)
Enterprise Funds
Adjustment for the net effect of the current year activity between the internal service funds and the enterprise
funds
Income before capital contributions and transfers
The notes to financial statements are an integral part of this statement.

Attachment 1

Transit Parking Total
$ - $ 416,738 $ 31,917,962 $ 10,668,015
- - 1,115,682 -
671,364 - 919,148 -
- - 44,395 24,184
671,364 416,738 33,997,187 10,692,199
- (107,665) 6,847,221 1,214,848
- 278,697 14,212,263 3,778,046
33,136 38,559 6,481,228 1,274,836
33,136 209,591 27,540,712 6,267,730
638,228 207,147 6,456,475 4,424,469
- - 89,898 -
242,868 12 1,954,886 499,129
- - - 179,178
- (26,557) (1,001,467) (6,421)
242,868 (26,545) 1,043,317 671,886
881,096 180,602 7,499,792 5,096,355
- - 3,965,388 -
- (25,278) (927,564) -
881,096 155,324 10,537,616 5,096,355
5,443,637 (734,450) 13,339,910
$ 6,324,733 $ (579,126) $ 18,436,265
- - -
1,222,817
$ 11,760,433
Total Internal
Service Funds
Enterprise Funds
Attachment 1

City of El Paso de Robles

STATEMENT OF CASH FLOWS
Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Water Wastewater Airport

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and other agencies $ 17,839,511 $ 13,627,922 $ 886,412 Payments to employees (2,980,452) (2,917,631) (371,200) Payments to suppliers (8,180,271) (3,373,240) (724,329) Net cash provided (used) by operating activities 6,678,788 7,337,051 (209,117)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers out to other funds (483,980) (373,357) (44,949) Tax revenue received - - 89,898
(483,980) (373,357) 44,949
Grant revenues received - 3,500,000 465,388
Proceeds from issuance of debt - 1,546,598 -
Purchase of capital assets (4,436,011) (6,082,537) (1,354,598) Lease payments made - - -
Debt payments made (492,491) (2,797,442) (36,038)
Interest payments made (175,092) (826,605) (13,427)
Net proceeds from interfund advances - - -
Proceeds from sale of capital assets - - -
(5,103,594) (4,659,986) (938,675)

CASH FLOWS FROM INVESTING ACTIVITIES
Net investment income received 715,556 368,255 502,125
Net cash provided by investing activities 715,556 368,255 502,125 1,806,770 2,671,963 (600,718)
Cash and cash equivalents - beginning of fiscal year 15,810,892 7,936,081 3,475,589 Cash and cash equivalents - end of fiscal year $ 17,617,662 $ 10,608,044 $ 2,874,871 17,617,662 10,608,044 2,874,871
- - -
Net cash provided (used) by noncapital financing
activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Enterprise Funds
Net cash provided (used) by capital and related
financing activities
Net increase in cash and cash equivalents
The notes to financial statements are an integral part of this statement.

Attachment 1

Transit Parking Total
$ 671,364 $ 447,706 $ 33,472,915 $ 10,654,961
- (240,661) (6,509,944) (1,374,392)
- (239,271) (12,517,111) (4,106,525)
671,364 (32,226) 14,445,860 5,174,044
- (25,278) (927,564) -
- - 89,898 -
- (25,278) (837,666) -
- - 3,965,388 -
- - 1,546,598 -
- - (11,873,146) (2,043,882)
- - - (70,936)
- - (3,325,971) (107,651)
- (19,246) (1,034,370) (6,421)
- 77,666 77,666 -
- - - 179,178
- 58,420 (10,643,835) (2,049,712)
225,356 8 1,811,300 461,773
225,356 8 1,811,300 461,773
896,720 924 4,775,659 3,586,105
4,679,361 315 31,902,238 6,802,651
$ 5,576,081 $ 1,239 $ 36,677,897 $ 10,388,756
5,576,081 1,239 36,677,897 Continued
- - -
Total Internal
Service Funds
Enterprise Funds
Attachment 1

City of El Paso de Robles
STATEMENT OF CASH FLOWS (continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Water Wastewater Airport
Operating income (loss) $ 2,743,219 $ 3,155,511 $ (287,630) Adjustments to reconcile operating activities:

Depreciation and amortization expense 2,111,775 3,849,928 447,830 Accounts receivable (106,053) (11,908) (24,372)
Prepaid items (74) (74) -
Deposits (218) - -
Inventory 45,798 - -
Loans receivable - 151 -
Leases receivable - - (6,521)
Deferred outflows of resources for pensions (92,728) 146,939 3,389 Deferred outflows of resources for OPEB (21,283) (23,051) (2,890) Accounts payable 1,439,897 120,290 50,107
Accrued payroll expenses 9,833 5,970 2,910
Customer deposits 15,179 - -
Unearned revenue - - (16,009)
Compensated absences 22,267 (15,126) 4,014
Net OPEB liability (14,291) (37,708) 9,289
Net pension liability 440,679 75,295 (1,155)
Deferred inflows of resources for leases - - (405,707)
Deferred inflows of resources for pensions 2,614 (5,068) (145) Deferred inflows of resources for OPEB 82,174 75,902 17,773 Net cash provided (used) by operating activities $ 6,678,788 $ 7,337,051 $ (209,117) 6,678,788 7,337,051 (209,117)
Non-cash activity: - - -
Amortization of premium on refunding bonds $ - $ 24,750 $ - Changes in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:

Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Enterprise Funds
The notes to financial statements are an integral part of this statement.

Attachment 1

Transit Parking Total
$ 638,228 $ 207,147 $ 6,456,475 $ 4,424,469
33,136 38,559 6,481,228 1,274,836
- 30,968 (111,365) (37,238)
- - (148) (66,314)
- - (218) -
- - 45,798 -
- - 151 -
- - (6,521) -
- 98,941 156,541 64,096
- 129 (47,095) (6,795)
- 39,426 1,649,720 (262,165)
- (4,883) 13,830 2,905
- - 15,179 -
- - (16,009) -
- (15,039) (3,884) (3,160)
- (49,526) (92,236) (38,082)
- (345,023) 169,796 (184,768)
- - (405,707) -
- (3,204) (5,803) (2,224)
- (29,721) 146,128 8,484
$ 671,364 $ (32,226) $ 14,445,860 $ 5,174,044
671,364 (32,226) 5,174,044
- - -
$ - $ - $ 24,750 $ -
Total Internal
Service Funds
Enterprise Funds
Attachment 1

THIS PAGE IS INTENTIONALLY LEFT BLANK
Attachment 1

FIDUCIARY FUNDS

Fiduciary Funds Financial Statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. These funds are used to account for assets held by the City for individuals, private organizations, other governmental units, and/or other funds, and therefore, they cannot be used to support the government's own programs.

For the Fiduciary Fund Financial Statements, the custodial funds are combined in a single column. Individual custodial funds may be found in the Individual Fund Financial Statements and Schedules.

Private-Purpose Trust Fund
This fund is to account for the financial activities of the Successor Agency (the former and dissolved Redevelopment Agency) of the City.

Pension Trust Fund
This fund was established to prefund the City’s outstanding pension obligation and can only be used to offset CalPERS pension costs.

Attachment 1

City of El Paso de Robles

STATEMENT OF FIDUCIARY NET POSITION
June 30, 2024
ASSETS 403
Ca Cash and cash equivalents $ 3,947,118 $ - $ 127,701
Investments held in mutual funds - 10,491,434 -
Interest receivable 590,640 - 688
Loans receivable 3,020,000 - -
Total assets 7,557,758 10,491,434 128,389

LIABILITIES
Accounts payable - - 15,155
Unearned revenue 1,114,264 - -
Interest payable 274,016 - -
Bonds payable 8,970,747 - -
Total liabilities 10,359,027 - 15,155

NET POSITION
Restricted in trust for:

Individuals, organizations, and other governments - - 113,234 (2,801,269) - -
Pension benefits - 10,491,434 -
Total net position $ (2,801,269) $ 10,491,434 $ 113,234 Pension Trust Fund
Total Custodial
Funds
Successor Agency to the former
Redevelopment Agency
Private-Purpose
Trust Fund
The notes to financial statements are an integral part of this statement.

Attachment 1

City of El Paso de Robles

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Fiscal Year Ended June 30, 2024

ADDITIONS
Property taxes $ 712,027 $ - $ -
Use of money and property 185,431 1,123,198 5,025
Custodial fund contributions - - 21,383
Contributions from the City of Paso Robles - 556,900 -
Total additions 897,458 1,680,098 26,408

DELETIONS
Administration 8,624 - -
Interest and fiscal agent fees 551,940 - -
Beneficiary payments - - 21,383
Total deletions 560,564 - 21,383
Change in net position 336,894 1,680,098 5,025
Net position - July 1 (3,138,163) 8,811,336 108,209
Net position - June 30 $ (2,801,269) $ 10,491,434 $ 113,234 Pension Trust Fund
Total Custodial
Funds
Private-Purpose
Trust Fund
The notes to financial statements are an integral part of this statement.

Attachment 1

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of El Paso de Robles (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies for the City are described below:

A. Reporting Entity
The accompanying annual comprehensive financial report includes the financial activities of the City and its component unit, El Paso de Robles Public Financing Authority (Authority). The financial activities of the foregoing entity have been aggregated and merged (termed “blended”) with those of the City in the accompanying financial statements, as it meets the criteria for inclusion as set forth in the GASB Statement No. 14, as amended by GASB Statements No. 39, No. 61, and No. 80.

The City was incorporated in 1889 and operates under the State of California City Council-Manager form of government.

The governing body consists of a five-member City Council: the Mayor, elected at large by voters of the City; and four councilmembers elected by-district elections. The City also elects one City Treasurer at large; the City Clerk is an appointed position. The City is a “full-service” municipality providing public safety (e.g., police and fire and emergency services), library, recreation, planning, zoning, streets and road maintenance, public improvements, water, sewer, airport operations, and general administrative services.

The City Council members, in separate sessions, serve as the governing board of the Authority and, as such, this entity is presented as a blended component unit. The Authority was formed by the City as a conduit for long-term debt financing and is governed by the City Council. The Authority exists and acts as a separate public entity and has the power to acquire, purchase, construct, finance, lease, and/or sell public facilities and appurtenances necessary or convenient for the public purposes of the City. The Authority has no assets of its own. All capital assets acquired by the City under the Authority are included in the financial statements.

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

Government-Wide Financial Statements: The Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

Fund Financial Statements: The Fund Financial Statements provide information about the City’s funds, including fiduciary funds and the blended component unit. Separate statements for each fund category (governmental, proprietary, and fiduciary) are presented. The emphasis of the Fund Financial Statements is on major individual funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

Proprietary funds operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, depreciation, and amortization on capital assets. All expenses not meeting this definition are reported as nonoperating expenses.

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C. Major Funds
The City reported the following major governmental funds in the accompanying financial statements:

General Fund – The general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Measure J-20 Supplemental Sales Tax Fund – Accounts for and reports the financial resources generated by the voterapproved Measure J-20, a one-cent supplemental sales tax approved by voters in 2020. The City Council approved Resolution 20-118, committing these revenues to Fire/Emergency and Police services and Streets Repair and Maintenance. These commitments remain in effect until replaced by future Resolutions.

American Rescue Plan Act (ARPA) Fund – Accounts for receipts and expenditures of money appropriated by the American Rescue Plan Act, a COVID-19 federal stimulus relief package signed by President Biden in 2021.

Specific Plans Fund – Accounts for development impact fees assessed and collected for certain permits constructed within the Borkey, Union/46, Chandler Ranch, and Olsen Beechwood specific plans. Funds are to be used for public facilities and infrastructure in those specific areas.

Capital Projects Fund – Accounts for and reports the financial resources that are restricted, committed or assigned to expenditures for major capital outlays including the acquisition or construction of capital equipment, facilities, and infrastructure.

The City reported all enterprise funds as major proprietary funds in the accompanying financial statements:

Water Fund – Accounts for the operation and maintenance of the City’s water production, transmission, and distribution system which is necessary to provide water service to the residents of the City.

Wastewater Fund – Accounts for the operation and maintenance of the City’s sewer collection, treatment, and recycled water system which is necessary to provide sewer services to the residents of the City.

Airport Fund – Accounts for the operation and maintenance activities of the City’s airport.

Transit Fund – Accounts for the operation and maintenance activities for the City’s transit system, including both demand response and fixed route services as well as funding contributions to the regional transit system.

Parking Fund – Accounts for the operation and maintenance activities for the City’s parking program.

The City reports the following internal service funds as proprietary funds:

Information Technology Fund – Accounts for the maintenance and replacement of business equipment used by City departments.

Fleet and Equipment Fund – Accounts for the operations, maintenance, and replacement of the City’s fleet of vehicles and related equipment.

Risk Management Fund – Accounts for liability, property, and workers’ compensation insurance.

Attachment 1

The City also reports the following fiduciary funds:

Private-Purpose Trust Fund – The Successor Agency to the Former Redevelopment Agency is a private-purpose trust fund to account for the financial activities of the dissolved Redevelopment Agency (RDA). Private-purpose trust funds are used to report all trust arrangements (other than pension and investment trust funds) “under which principal and income benefit individuals, private organizations, or other governments.” Pension Trust Fund – The Section 115 Pension Trust was established to prefund the City’s outstanding pension obligation and can only be used to offset California Public Employees’ Retirement System pension costs.

Custodial Funds – 1) Accounts for funds to provide scholarships to graduated local high school students who undertake courses in the medical field; scholarships are awarded by the Paso Robles Joint Unified School District, and 2) Accounts for funds collected for the Business Improvement Area to be used by the Downtown Mainstreet Association to provide various improvements in the downtown core.

D. Basis of Accounting and Measurement Focus
The Government-Wide, Proprietary, and Fiduciary Funds Financial Statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. These statements are presented on an economic resources measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources are included in the accompanying Statement of Net Position. This includes capital assets, infrastructure assets, and long-term liabilities. 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. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.

Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to inter-fund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, those transactions between governmental and business-type activities have not been eliminated.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty (60) days after the fiscal yearend. Expenditures are recorded when the related fund liability is incurred, except for the principal and interest on longterm debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds and proceeds of long-term debt and acquisitions under financed purchases are reported as other financing sources.

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

Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services.

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 cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program Attachment 1

expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. Certain indirect costs are included in program expenses reported for individual functions and activities.

E. Budgeting and Budgetary Accounting
The City has four primary priorities in budget development: long-term well-being and economic strength of the community; long-term fiscal stability of the City; nature and scope of the services the City provides; and overall well-being of the organization and its employees, given that the City is a service-based organization that relies heavily on its human capital to provide services to the community. The City must find the path that best promotes all four working together.

The operating budget is prepared in the context of a ten-year financial plan with operating expenditures and revenues being balanced over the term of the ten-year financial plan. The City typically adopts a two-year budget, except in special situations (as in the case of the COVID-19 pandemic) which may call for a one-year budget. The intent is that the ten-year financial plan be updated every two years, during the mid-cycle of the biennial budget. The process for updating the twoyear budget is generally described as follows: Administrative Services prepares base budget schedules consisting of maintenance and operations, personnel services, operating capital, revenue estimating forms and forms for submitting budgetary requests for new and/or expanded services, as well as requests for operating capital not already provided for on various pre-authorized replacement schedules. These schedules are distributed to all executive managers for affirmation and/or completion. Upon affirmation and return of new request forms, Administrative Services compiles and publishes the draft budget. Executive managers meet to review the draft budget and prepare specific recommendations to balance the budget should resources not cover budgetary requests. The draft budget and executive manager recommendations are then reviewed by the City Council and then formally adopted in June. The budget preparation, review, and approval process take place in the context of and with the objective of addressing the goals established by the City Council during a goal setting workshop held just prior to the process noted above.

This approved budget covers substantially all City expenditures including re-budgeted items. All appropriated amounts are as originally adopted or as amended by the City Council and lapse at fiscal year-end. The City Manager is authorized to transfer budget amounts between objects within the same fund. Transfers of appropriations between funds may be made only by the City Council. Total departmental expenditures in excess of the total departmental budgeted amounts are discouraged and executive managers are held accountable accordingly. Formal budgetary integration is employed as a management control tool during the fiscal year for all funds including enterprise funds. All budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Furthermore, it is City policy to prepare periodic financial reports for review by the City Council.

F. Cash and Investments
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market valuation data provided by Zions Bancorporation is used as fair value for those securities for which market quotations are readily available. The City’s investments with fiscal agents required by bond indentures are stated at cost, which approximates fair value.

The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in Structured Notes and Asset-Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.

For purposes of the Statement of Cash Flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All cash and investments of the proprietary fund types are pooled with the City’s pooled cash and investments.

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G. Inventories and Prepaid Items
Inventory is recorded using the purchases method and cost is recorded as an expenditure at the time individual inventory items are purchased. Inventory held in the Water Department is valued at cost using the first in, first out (FIFO) inventory method. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.

H. Leases Receivable
Leases receivable are recognized at the commencement of the lease term, with certain exceptions for leases of assets held as investments, certain regulated leases, short‐term leases, leases below the capitalization threshold of $5,000, and leases that transfer ownership of the underlying asset. A lessor does not derecognize the assets underlying the lease. The lease receivable is measured at the present value of lease payments expected to be received during the lease term. The present value of the future lease payments to be received are discounted based on the interest rate the City charges the lessee or Consumer Price Index (CPI) rate. The City uses the interest rate identified in the contract as the discount rate. If no interest rate is specified, the City uses its implicit rate as the discount rate. The lease term includes the noncancelable period of the lease and extensions the City is reasonably certain to exercise. The City monitors changes in circumstances that are expected to significantly affect the amount of a lease receivable that may require a remeasurement of its lease.

I. Capital Assets
In accordance with GASB Statement No. 34, the City is required to report the inclusion of capital assets including infrastructure capital assets in the local governments’ basic financial statements. Capital assets are defined as property, plant, equipment, and infrastructure assets (roads, sidewalks, bridges, drainage systems, lighting systems, etc.). The City’s policy is to capitalize all assets with costs exceeding certain minimum thresholds, $5,000 for machinery and equipment and $25,000 for buildings, improvements, and infrastructure, all with useful lives exceeding two years. Capital assets are reported in the applicable governmental or business-type activities columns in the Government-Wide Financial Statements. All capital assets including infrastructure are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair value on the date contributed.

Donated capital assets, donated works of art, and service concession arrangements are reported at acquisition value rather than fair value.

For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property as of June 30, 2002, and has completed an internal update as of June 30, 2021. This appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition.

When actual cost information was not available, current replacement cost was estimated and trended back to the date of acquisition by using either the Bureau of Labor Statistics; Consumer Price Index for All Urban Consumers, Los AngelesRiverside-Orange County, not seasonally adjusted for all items; or the Construction Cost Index compiled by Engineering News Record (ENR), revised in June 2002. The Consumer Price Index was used for traffic signals and streetlights. The Construction Cost Index was used for all other infrastructure assets. The book value was then computed by deducting the accumulated depreciation from the original cost.

Depreciation Expense: The purpose of depreciation is to spread the cost of capital assets equitably among all users over the useful life of these assets. The City utilizes the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. See Note 3 for further detail.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of asset are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

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J. Right-to-Use Leased Assets
In accordance with GASB Statement No. 87, the City is required to report the inclusion of right-to-use leased assets in the local governments’ basic financial statements. Right-to-use leased assets are recognized at the lease commencement date and represent the City's right to use an underlying asset for the lease term. Right-to-use leased assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to place the leased asset into service. Right-to-use leased assets are amortized over the shorter of the lease term or useful life of the underlying asset using the straight-line method.

K. Compensated Absences
Employees are paid 100% of their accumulated vacation pay and compensatory time when they terminate their employment with the City. As a result, the City accounts for the cost of annual vacation, compensatory time, and fringe benefits as earned in accordance with the GASB Statement No. 101, Compensated Absences, in that, accumulated unpaid vacation leave and compensatory time is accrued when incurred in the proprietary Government-Wide Financial Statements. Employees may accumulate sick leave without limitation but accumulated sick pay, under no circumstances, is paid to employees at any time. Employees retiring from the City may convert their unused sick leave to service credit.

As such, it is assumed that sick leave is more likely than not to be settled through conversion to defined benefit postemployment benefits and is not included in a liability for compensated absences.

L. Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at fiscal year-end are referred to as “due to/due from other funds.” In some cases, “due to/due from other funds” represents the short-term transfer of cash resources at fiscal year-end to eliminate negative cash balances that are temporary in nature. Cash resources have been loaned from one fund to another to provide resources to prepare a “specific plan,” a planning/development tool, until fees generated from the specific plan area repay the loan.

Proprietary fund receivables are shown net of any allowance for uncollectible accounts. Utility customers are billed monthly, and the value of services provided have been included in the accompanying financial statements.

M. Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognizes deferred outflows and inflows of resources.

In addition to assets, the City will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is defined as a consumption of net assets or fund balance that applies to future periods. The Statement of Net Position has three items which qualify for reporting in this category: loss on refunding bonds, pensions, and other post-employment benefits (OPEB). The Governmental Funds Balance Sheet has one item which qualifies for reporting in this category, deferred interest expense.

In addition to liabilities, the City will sometimes report a separate section for deferred inflows of resources. A deferred inflow of resources is defined as an acquisition of net assets or fund balance by the City that applies to future periods. The Statement of Net Position has three items which qualify for reporting in this category: leases, pensions, and other postemployment benefits (OPEB). The Governmental Funds Balance Sheet has two items which qualifies for reporting in this category: leases and unavailable revenue.

Refer to Note 7 for further details on the deferred inflows and outflows of resources the City has recognized.

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N. Fund Balances and Net Position
Fund balance is the difference between the assets added to deferred outflows of resources and liabilities added to deferred inflows of resources reported in governmental funds. In compliance with GASB Statement No. 54, the City has established the following fund balance classifications:

Nonspendable – The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in a spendable form or (b) legally or contractually required to be maintained intact.

Restricted – The restricted fund balance classification includes amounts with constraints placed on the use of resources (other than nonspendable items) that are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.

Committed – The committed fund balance classification includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. Those committed amounts cannot be used for any other purpose unless the City removes or changes the specified use by taking the same type of action (legislation, resolution, ordinance, etc.) it employed to previously commit those amounts. Committed fund balance should also incorporate contractual obligations to the extent that existing resources in the fund have specifically committed for use in satisfying those contractual requirements.

Assigned – The assigned fund balance classification includes amounts that are constrained by the City’s intent to be used for specific purposes, but that are neither restricted nor committed. Such intent is to be established by (a) the City Council itself or (b) the City Manager to whom the City Council has delegated the authority to assign amounts to be used for specific purposes.

Unassigned – The unassigned fund balance classification includes amounts that do not fall into one of the above four categories. The General Fund is the only fund that should report this category of fund balance other than other governmental funds that report a negative fund balance if there is an over-spending for specific purposes for which amounts have been restricted, committed, or assigned.

GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified in the following categories:

Net Investment in Capital Assets – Net position that is the net investment in capital assets consists of capital assets, net of accumulated depreciation and amortization, and reduced by outstanding debt directly attributed to the acquisition, construction, or improvement of the assets.

Restricted – The restricted net position is the portion of net position that has external constraints placed on it by external creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislations.

Unrestricted – The unrestricted net position classification is the amount remaining that does not fall into one of the above two categories.

When an expense is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to spend restricted fund balance first followed by committed, then assigned, and if applicable, unassigned.

To address unanticipated emergency and contingency needs, and to secure the continued financial well-being of the City, the City Council has established fiscal policies where unrestricted General Fund reserves shall be maintained at no less Attachment 1

than 30% of the actual 10-year revenue trend. For the Water and Wastewater Funds, reserves shall be maintained at 25% of operating expenditures, plus $1.0 million.

O. Property Taxes
Property taxes are assessed, collected, and allocated by the County of San Luis Obispo throughout the fiscal year according to the following property tax calendar:

Secured Taxes Unsecured Taxes
Lien Date January 1 January 1
Levy Date July 1 July 1
Due Date – Secured Taxes 1st Installment, November 1
2nd Installment, February 1 June 30
Collection Date 1st Installment, December 10
2nd Installment, March 10 August 31
Under California law, property taxes are assessed and collected by counties up to 1 percent of assessed value, plus other increases approved by the voters. Under Proposition 13, adopted by the voters in a statewide ballot in 1978, assessed valuation is increased annually by a cost-of-living index not to exceed 2% except for those properties that changed ownership during the twelve-month period since the lien date. In these cases, the property is re-assessed at current value.

The property taxes go into a pool and are then allocated to the cities based on a complex formula prescribed by the state statute. Accordingly, the City recognizes property tax revenues when it becomes both measurable and available to finance expenditures of the current period.

Beginning with fiscal year 1993-94, the County of San Luis Obispo, for those taxing agencies desirous of participating on a volunteer basis, converted the property tax collection and distribution system to the “Teeter Plan.” The City chose to participate in the “Teeter Plan” wherein the City receives 100% of the property tax levy during the fiscal year without deduction for property tax payment delinquencies. Accordingly, the County of San Luis Obispo keeps all property tax penalties collected.

P. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) Miscellaneous and Safety Plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Q. Other Post-Employment Benefits
For purposes of measuring the net other post-employment benefits (OPEB) liability, deferred outflows and inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan, the assets of which are held by Mission Square Retirement, and additions to/deductions from the OPEB plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

R. Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America, as prescribed by GASB and the American Institute of Certified Public Accountants, require management to make assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates.

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S. Future Governmental Accounting Standards Board Pronouncements GASB
Statement
No. Title Effective Date
102 Certain Risk Disclosures Fiscal years beginning after June 15, 2024 103 Financial Reporting Model
Improvements Fiscal years beginning after June 15, 2024 104 Disclosure of Certain Capital Assets Fiscal years beginning after June 15, 2025 NOTE 2 – CASH AND INVESTMENTS
The composition of cash and investments as of June 30, 2024, is as follows:

Cash in bank and on hand $ (414,633)
Cash and investments held with fiscal agent 2,578,981
Cash and investments held by pension trust 10,491,435
Investments 161,296,630
Total $ 173,952,413
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of the City’s debt instruments or agency’s agreements:

Cash and investments, statement of net position $ 159,386,160 Cash and investments, statement of fiduciary net position 14,566,253 Total $ 173,952,413
A. Investment Policy
Cash balances from all funds are combined and invested pursuant to the City Council’s adopted Investment Policy and State Government Code Section 53647. Authorized investments include U.S. Treasury Obligations, U.S. Agency Notes, U.S.

Agency Mortgaged Backed Securities, Banker’s Acceptances, Commercial Paper, Corporate Notes, Certificates of Deposit, Municipal Bonds issued by the State of California, Municipal Bonds issued by California Local Agency, Municipal Bonds issued by Other 49 States, Negotiable Certificates of Deposit, Money Market Funds, Local Government Investment Pools, Asset-Backed Securities, Supranationals, LAIF, and the California Asset Management Program. The earnings from these investments are allocated monthly to each fund based upon the closing balance of each fund at month end. Funds held by outside fiscal agents under the provisions of bond indentures that are maintained separately, and interest income earned on said funds, are credited directly to the bond fund or reported as if the interest were credited directly to said funds.

At no time during the fiscal year did the City borrow funds through the use of reverse purchase agreements.

The table below identifies the investment types that are specifically authorized by the City’s Investment Policy and identifies certain provisions of the City’s Investment Policy that address interest rate risk and concentration of credit risk per GASB Statement No. 40. It does not address investments of debt proceeds held by bond trustees that are governed by the provisions of the debt agreement between the City and the trustee nor does it address investments held by the Section 115 Trust as those provisions are governed by the post-employment benefits trust agreement. Any investment type not listed is either prohibited by California Government Code, prohibited by the City’s Investment Policy, or not specifically addressed by the City’s Investment Policy.

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Investment Types Authorized by Law & Policy
Maximum
Maturity
Maximum
Percent of
Portfolio
Maximum in
One Issuer
U.S. Treasury Obligations 7 years None None
U.S. Agency Notes 7 years None None
U.S. Agency Mortgaged Backed Securities 5 years None None Banker’s Acceptances 180 days 40% 5%
Commercial Paper 270 days 25% 5%
Corporate Notes 5 years 30% 5%
Certificates of Deposit (CD’s) 5 years 30% 5%
Municipal Bonds Issued by State of California 5 years 25% 5% Municipal Bonds Issued by California Local Agency 5 years 25% 5% Municipal Bonds Issued by Other 49 States 5 years 25% 5% Negotiable Certificates of Deposit 5 years 30% 5%
Money Market Funds 5 years 20% 5%
Local Government Investment Pools 5 years None 5%
Asset-Backed Securities 5 years 20% 5%
Supranationals 5 years 30% 5%
Local Agency Investment Fund (LAIF) None None $75 million California Asset Management Program (CAMP) None None $75 million Note: Only 15% of the aggregate total of 60% may be invested between 5 and 7 years.

B. Collateral and Categorization Requirements
The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. This collateral for cash deposits is considered to be held in the City’s name. The fair value of the pledged securities must equal at least 110% of the City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The collateral for certificates of deposit is generally held in safekeeping by the Federal Home Loan Bank in San Francisco as the third-party trustee. The securities are physically held in an undivided pool for all California public agency depositors. The State Public Administrative Office for public agencies and the Federal Home Loan Bank maintain detailed records of the security pool that are coordinated and updated weekly. The City Treasurer, at their discretion, may waive the collateralization requirement for deposits that are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC).

C. Disclosures Relating to Interest Risk
Per GASB Statement No. 40, 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, there is a greater sensitivity of its fair value to changes in market interest rates. One of the ways 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 cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity. For purposes of the table shown below, any callable securities are assumed to be held to maturity and all investments are shown at fair value.

Remaining Maturity (in months)
Investments Total
12 Months or
Less
13 to 24
Months
25 to 60
Months
More Than 60
Months
U.S. Agency Notes $ 10,439,585 $ 6,658,594 $ 3,780,991 $ - $ - U.S. Treasuries 81,851,301 3,714,767 25,820,494 52,316,040 - Attachment 1

Remaining Maturity (in months)
Investments Total
12 Months or
Less
13 to 24
Months
25 to 60
Months
More Than 60
Months
Collateralized Mortgage
Obligations $ 588,237 $ - $ - $ 588,237 $ -
Corporate Notes 17,298,238 2,527,400 2,092,777 12,678,061 - Supranationals 860,270 860,270 - - -
Certificates of Deposit 1,407,889 599,974 - 807,915 -
LAIF 18,523,816 18,523,816 - - -
CAMP 30,321,279 30,321,279 - - -
Money Market Funds 6,015 6,015 - - -
Held in Pension Trust: 0 0 0 0
Money Market Funds 35,575 35,575 - - -
Mutual Funds 10,455,860 10,455,860 - - -
Held by Bond Trustee: 0 0 0 0
Money Market Funds 2,578,981 2,578,981 - - -
Total Investments $ 174,367,046 $ 76,282,531 $ 31,694,262 $ 66,390,253 $ - D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City investments did not include any investments that are highly sensitive to interest rate fluctuations (to a degree other than already indicated in the information provided above).

E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that the 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 year-end for each investment type.

Rating as of Fiscal Year-End
Investments Total
Minimum
Legal Rating
Exempt from
Disclosure AAA AA A Not Rated
U.S. Agency Notes $ 10,439,585 N/A $ - $ - $ 10,439,585 $ - $ - U.S. Treasuries 81,851,301 N/A - - 81,851,301 - -
Collateralized Mortgage
Obligations 588,237 AA 588,237
Corporate Notes 17,298,238 A - 1,401,337 4,812,257 11,084,644 - Supranationals 860,270 AA - 860,270 - - -
Certificates of Deposit 1,407,889 A - - - - 1,407,889
LAIF 18,523,816 N/A - - - - 18,523,816
CAMP 30,321,279 N/A - 30,321,279 - - -
Money Market Funds 6,015 N/A - - - - 6,015
Held in Pension Trust: 00 0 0
Money Market Funds 35,575 N/A 35,575 - - - -
Mutual Funds 10,455,860 N/A 10,455,860 - - - -
Held by Bond Trustee: 00 0 0
Money Market Funds 2,578,981 N/A 2,578,981 - - - -
Total Investments $174,367,046 $ 13,070,416 $ 32,582,886 $ 97,691,380 $ 11,084,644 $ 19,937,720 F. Concentrations of Credit Risk
The Investment Policy of the City contains limitations that are, in some cases, more restrictive than those stipulated by the California Government Code. In some cases, the Investment Policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities and external investment pools) that represent 5% or more of the total City investments are as follows:

Issuer Amount
Federal Home Loan Bank $ 547,829
Federal Home Loan Mortgage Corporation 3,792,415
Attachment 1

Issuer Amount
Federal National Mortgage Association $ 6,099,341
Total $ 10,439,585
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 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., brokerdealer) 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.

H. Marking Investments to Fair Value
GASB Statement No. 31 requires that the City’s investments be carried at fair value instead of cost. The City must adjust the book value of its investments to reflect their fair value at each fiscal year-end, and it must include the effects of these adjustments in income for that fiscal year.

GASB Statement No. 31 applies to all the City’s investments, even if they are held to maturity and redeemed at full face value. Since typically the City holds all investments until maturity or until fair value equals or exceeds cost, the fair value adjustments required by GASB Statement No. 31 result in accounting gains or losses (called “recognized” or “unrealized” gains or losses) which do not reflect actual sales of the investments (called “realized” gains or losses). Thus, recognized gains or losses on an investment purchased at par will now reflect changes in value at each succeeding fiscal year-end, but these recognized gains or losses will net to zero if the investment is held to maturity. By following GASB Statement No. 31, the City is reporting the amount of available resources that would actually have been available if it had been required to liquidate all its investments at fiscal year-end. The fair value is provided by Zions Bancorporation, the City’s safekeeping custodial institution.

GASB Statement No. 72 addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is 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. GASB Statement No. 72 also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements.

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 the fair value of the asset and has three tiers.
• Level 1: Investments reflect prices quoted in active markets. • Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in the markets that are not considered active. • Level 3: Investments reflect prices based upon unobservable sources.

Attachment 1

The City had the following recurring fair value measurements as of June 30, 2024:

Investments by Fair Value Total
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs (Level 3)
U.S. Agency Notes $ 10,439,585 $ - $ 10,439,585 $ -
U.S. Treasuries 81,851,301 - 81,851,301 -
Collateralized Mortgage Obligations 588,237 - 588,237 - Corporate Notes 17,298,238 - 17,298,238 -
Supranationals 860,270 - 860,270 -
Certificate of Deposit 1,407,889 1,407,889
Mutual Funds 10,455,860 - 10,455,860 -
Total investments measured at fair value 122,901,380 $ - $ 122,901,380 $ - Investments by Fair Value
Investments measured at amortized cost
LAIF 18,523,816
CAMP 30,321,279
Money Market Funds 2,620,571
Total Investments $ 174,367,046
I. Investment in State Investment Pool
The City is a voluntary participant in LAIF which is regulated by the California Government Code under the oversight of the California State Treasury. Each governmental agency may invest up to $75,000,000 for each account in the fund.

Investments in LAIF are highly liquid, as deposits can be converted to cash within twenty-four hours without loss of interest or principal. The full faith and credit of the State of California secure investments in LAIF.

NOTE 3 – CAPITAL ASSETS
A. Governmental Activities
Capital asset activity for the City’s governmental activities for the fiscal year ended June 30, 2024, is as follows:

Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Nondepreciable capital assets
Land $ 20,997,495 $ - $ - $ 20,997,495
Construction in progress 40,826,011 10,907,632 14,519,836 37,213,807 Total nondepreciable capital assets 61,823,506 10,907,632 14,519,836 58,211,302 Depreciable capital assets
Building and improvements 68,942,482 1,051,612 - 69,994,094 Equipment 17,290,947 2,885,864 87,302 20,089,509
Infrastructure 219,099,832 11,536,188 - 230,636,020
Total depreciable capital assets 305,333,261 15,473,664 87,302 320,719,623 Accumulated depreciation
Building and improvements 28,122,323 1,609,347 - 29,731,670 Equipment 9,470,250 1,143,574 87,302 10,526,522
Infrastructure 101,820,772 4,777,547 - 106,598,319
Total accumulated depreciation 139,413,345 7,530,468 87,302 146,856,511 Net depreciable capital assets 165,919,916 7,943,196 - 173,863,112

Attachment 1

Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Amortized right-to-use assets
Leased buildings and improvements $ 878,213 $ - $ - $ 878,213 Subscriptions 175,897 - - $ 175,897
Total amortized right-to-use assets 1,054,110 - - 1,054,110 Accumulated amortization
Leased buildings and improvements 451,624 213,073 - 664,697 Subscriptions 60,282 68,565 - 128,847
Total accumulated amortization 511,906 281,638 - 793,544 Net amortized right-to-use assets 542,204 (281,638) - 260,566 Net capital and right-to-use assets $ 228,285,626 $ 18,569,190 $ 14,519,836 $ 232,334,980 B. Business-Type Activities
Capital asset activity for the City’s business-type activities for the fiscal year ended June 30, 2024, is as follows:

Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Nondepreciable capital assets
Land $ 8,562,314 $ - $ - $ 8,562,314
Construction in progress 5,974,158 11,561,623 872,861 16,662,920 Total nondepreciable capital assets 14,536,472 11,561,623 872,861 25,225,234 Depreciable capital assets
Buildings and improvements 2,488,110 - - 2,488,110
Equipment 7,600,367 607,527 134,077 8,073,817
Infrastructure 199,809,165 872,861 - 200,682,026
Total depreciable capital assets 209,897,642 1,480,388 134,077 211,243,953 Accumulated depreciation
Buildings and improvements 940,051 56,296 - 996,347
Equipment 4,438,721 543,569 134,077 4,848,214
Infrastructure 82,325,400 6,251,489 - 88,576,889
Total accumulated depreciation 87,704,172 6,851,355 134,077 94,421,450 Net depreciable capital assets 122,193,470 (5,370,967) - 116,822,503

Net capital assets $ 136,729,942 $ 6,190,657 $ 872,861 $ 142,047,737 C. Depreciation Expense
Depreciation expense is charged to functions and programs based on their usage of related assets. The amounts allocated to each function or program is presented below:

Function/Program
Governmental
Activities
Business-Type
Activities Total
General government $ 730,509 $ - $ 730,509
Public safety 876,962 - 876,962
Highways and streets 4,947,931 - 4,947,931
Sanitation 5,003 - 5,003
Culture-recreation 970,063 - 970,063
Water - 2,309,680 2,309,680
Wastewater - 3,976,581 3,976,581
Airport - 481,526 481,526
Transit - 33,136 33,136
Parking - 50,432 50,432
Total $ 7,530,468 $ 6,851,355 $ 14,381,823
Attachment 1

D. Amortization Expense
Amortization expense is charged to functions and programs based on their usage of related assets. The amounts allocated to each function or program are presented below:

Function/Program
Total
Governmental
Activities
General government $ 153,098
Public safety 9,431
Culture-recreation 119,109
Total $ 281,638
NOTE 4 – LEASES RECEIVABLE
On December 9, 1999, the City entered into a 55-year lease with Depot Associates for the use of property and improvements located on Pine Street, between 7th and 8th Streets (also known as the “Historic Paso Robles Train Station Depot”). An initial lease receivable was recorded on July 1, 2021, in the amount of $544,819, and as of June 30, 2024, the value of the lease receivable is $528,823. The lessee is required to make monthly fixed payments of $1,567 and carries an interest rate of

2.5830%. The value of the deferred inflow of resources as of June 30, 2024, was $514,079; the City recognized lease revenue of $10,247 during the fiscal year.

On September 22, 2017, the City entered into a 60-month lease with New Cingular Wireless PCS, LLC (now Octagon Towers, LLC), to install a cellular tower on City-owned property located at 9000 East Highway 46 (also known as the “Landfill”). The initial lease receivable was recorded on July 1, 2021, in the amount of $1,184,137, and as of June 30, 2024, the value of the lease receivable is $1,060,663. The lessee is required to make monthly fixed payments of $4,400 and carries an interest rate of

1.0590%. The value of the deferred inflow of resources as of June 30, 2024, was $1,007,984; the City recognized lease revenue of $58,718 during the fiscal year. The lessee has four extension options, each for 60 months, with a lease escalation of 15% per extension.

On March 1, 2020, the City entered into an 8-year lease with the California Department of Air Resources, for the use of building and improvements located at 235 Santa Fe Avenue. An initial lease receivable was recorded on July 1, 2021, in the amount of $9,059, and as of June 30, 2024, the value of the lease receivable is $5,784. The lessee is required to make monthly fixed payments of $100 and carries an interest rate of 1.4510%. The value of the deferred inflow of resources as of June 30, 2024, was $5,662; the City recognized lease revenue of $1,132 during the fiscal year.

On November 3, 2020, the City purchased the leasehold agreement entered into by Greater California Financial, Inc. for the use of a building located at 4301 Second Wind Way. The original lease was for 10 years, expiring on May 31, 2027. The City recorded an initial lease receivable on July 1, 2021, in the amount of $1,675,450, and as of June 30, 2024, the value of the lease receivable is $1,195,086. The lessee is required to make monthly fixed payments of $14,164 and carries an interest rate of

1.2170%. The value of the deferred inflow of resources as of June 30, 2024, was $1,111,747; the City recognized lease revenue of $187,901 during the fiscal year. The lessee has one extension option for 36 months.

On August 24, 2021, the City entered into a 59-month lease with G3 Enterprises, Inc. for the use of a building located at 4309 Second Wind Way. An initial lease receivable was recorded on July 1, 2021, in the amount of $2,723,386 and as of June 30, 2024, the value of the lease receivable is $1,232,720. The lessee is required to make a monthly fixed payments of $45,612 on average over the term of the lease; the lease has an interest rate of 0.9010%. The value of the deferred inflow of resources as of June 30, 2024, was $1,134,744; the City recognized lease revenue of $544,677 during the fiscal year.

On February 22, 2023, the City entered into a 24-month lease with U.S. Representative Jimmy Panneta for use of a regional office building located at 800 Pine Street. An initial lease receivable was recorded in the amount of $27,693 and as of June 30, 2024, the value of the lease receivable is $8,481. The lessee is required to make monthly fixed payments of $1,222 and carries an interest rate of 2.56%. The value of deferred inflows of resources as of June 30, 2024, was $8,320; the City recognized lease Attachment 1

revenue of $14,262 during the fiscal year. The lessee cannot extend the term of the lease beyond January 2, 2025, which is the end of the constitutional term of the Congress to which the lessee was elected.

On February 21, 2024, the City entered into a 24-month lease with Earthtones Gifts and Gallery/Center for Healing for use of the other part of the building located at 800 Pine Street. An initial lease receivable was recorded in the amount of $113,164 and as of June 30, 2024, the value of the lease receivable is $106,793. The lessee is required to make monthly fixed payments of $1,690 per month and carries an interest rate of 2.58%. The value of deferred inflows of resources as of June 30, 2024, was $106,384; the City recognized lease revenue of $6,779 during the fiscal year. The lessee has two extension options, each for 24 months, with a lease escalation of 15% per extension.

The City leases its facilities to private and corporate companies and aircraft users for office space, airport hangar and land leases at and around the City’s municipal airport. The lease terms vary from 2 to 85 years, including the noncancelable period of the lease and extensions the City is reasonably certain to exercise and vary with each contract. Agreements typically allow for Consumer Price Index (CPI) annual increases to the lease payments. Where applicable, the actual CPI as of the measurement date was applied throughout the term of the lease. During the fiscal year, the City recognized $405,707 in lease revenue and $378,291 in interest income related to these agreements. On June 30, 2023, the City recorded $13.6 million in lease receivables for these arrangements. Also, the City has a deferred inflows of resources associated with these leases that will be recognized as revenue over the lease terms. As of June 30, 2024, the balance of deferred inflows of resources was $12.5 million.

A summary of lease receivable for year ended June 30, 2024, is as follows:

Fund
Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
General Fund $ 4,818,892 $ 113,164 $ 793,706 $ 4,138,350 Airport Fund 13,598,738 143,734 137,213 13,605,259
Total leases receivable $ 18,417,630 $ 256,898 $ 930,919 $ 17,743,609 Future minimum rental receipts on the leases mentioned above are as follows:

Fiscal Year Ending
June 30 Principal Interest Total
2025 $ 892,301 $ 400,719 $ 1,293,020
2026 931,286 391,759 1,323,045
2027 411,425 384,329 795,754
2028 389,077 379,616 768,693
2029 417,930 374,140 792,070
2030-2034 1,069,219 1,771,457 2,840,676
2035-2039 1,205,968 1,662,995 2,868,963
2040-2044 1,208,256 1,548,394 2,756,650
2045-2049 1,337,404 1,420,975 2,758,379
2050-2054 344,228 1,316,470 1,660,698
2055-2059 532,763 1,254,127 1,786,890
2060-2064 315,899 1,178,254 1,494,153
2065-2069 444,266 1,120,953 1,565,219
2070-2074 110,767 1,060,934 1,171,701
2075-2079 32,770 1,050,098 1,082,868
2080-2084 267,164 1,032,025 1,299,189
2085-2089 587,378 978,145 1,565,523
2090-2094 1,009,787 876,665 1,886,452
2095-2099 1,560,375 712,797 2,273,172
2100-2104 2,271,148 468,024 2,739,172
2105-2108 2,404,198 129,203 2,533,401
Total $ 17,743,609 $ 19,512,079 $ 37,255,688
Attachment 1

Regulated Leases Excluded by GASB Statement No. 87: A significant portion of the City’s revenue comes from regulated leases of which the City is the lessor. Regulated leases as defined by the Department of Transportation and the Federal Aviation Administration and outlined in GASB Statement No. 87 paragraphs 42 and 43 are specially excluded.

The City leases buildings, land, hangars to various businesses and individuals with month-to-month arrangements or under long-term leases with terms from 1 to 55 years for aeronautical-related purposes. Rental revenues from regulated leases excluded by GASB Statement No. 87, including month-to-month leases, were $267,549 for the fiscal year ended June 30, 2024.

Future minimum rental receipts on regulated leases excluded by GASB Statement No. 87 are as follows:

Fiscal Year Ending
June 30 Amount
2025 $ 284,636
2026 358,512
2027 379,570
2028 371,887
2029 373,876
2030-2034 1,540,079
2035-2039 1,195,670
2040-2044 871,974
2045-2049 569,611
2050-2054 511,194
2055-2059 511,194
2060-2064 465,829
Total $ 7,434,032
NOTE 5 – LOANS RECEIVABLE
The Community Development Block Grant (CDBG) Fund and Cal Home Loan Program Fund include various loans to individuals that qualify under the programs’ guidelines that include items such as refurbishing a home for a quadriplegic person, or blighted homes within the RDA project area that the owner is unable to address due to personal financial issues. The total amount outstanding for CDBG loans as of June 30, 2024, was $737,690 and Cal Home loan was $103,900.

On January 31, 2013, the City entered into a fee deferral agreement with Oak Park 1, LP, to construct 39 new low-income residential units as part of Phase I of the Oak Park Housing Project. Commencing on the date of the note, and continuing throughout the term of the note, the outstanding principal balance of deferred fees accrues at a compounded interest rate of

3.75% per year. A portion of the residual receipts received from the rental income shall be made to the City but is due and payable in full upon the 30th anniversary of this note. The total amount outstanding as of June 30, 2024, was $776,351.

On February 7, 2014, the City entered into a fee deferral agreement with Oak Park 2, LP, to construct 41 new low-income residential units as part of Phase II of the Oak Park Housing Project. Commencing on the date of the note, and continuing throughout the term of the note, the outstanding principal balance of deferred fees accrues at a simple interest rate of 3.75% per year. A portion of the residual receipts received from the rental income shall be made to the City but is due and payable in full upon the 30th anniversary of this note. The total amount outstanding as of June 30, 2024, was $679,218.

On November 15, 2017, the City entered into a fee deferral agreement with Oak Park 3, LP, to construct 33 new low-income residential units as part of Phase III of the Oak Park Housing Project. Commencing on the date of the note, and continuing throughout the term of the note, the outstanding principal balance of deferred fees accrues at a simple interest rate of 3.75% per year. A portion of the residual receipts received from the rental income shall be made to the City but is due and payable in full upon the 30th anniversary of this note. The total amount outstanding as of June 30, 2024, was $792,114.

On November 16, 2018, the City entered into a fee deferral agreement with Oak Park 4, LP, to construct 57 new low-income residential units as part of Phase IV of the Oak Park Housing Project. Commencing on the date of the note, and continuing Attachment 1

throughout the term of the note, the outstanding principal balance of deferred fees accrues at a simple interest rate of 3.75% per year. A portion of the residual receipts received from the rental income shall be made to the City but is due and payable in full upon the 30th anniversary of this note. The total amount outstanding as of June 30, 2024, was $1,428,679.

On May 16, 2023, the City entered into an agreement with Sunrise Villas, LP to construct 69 new low-income multi-family residential units located on Lot A of Chandler Ranch development. Commencing on the date of the note, and continuing throughout the term of the note, the outstanding principal balance of deferred fees accrues at a simple interest rate of 3.75% per year. A portion of the residual receipts received from the rental income shall be made to the City but is due and payable in full upon the 30th anniversary of this note. The total amount outstanding as of June 30, 2024, was $1,729,488.

On May 16, 2023, the City entered into an agreement with River Walk Terrace, LP to construct 79 new low-income multi-family residential units located near the Woodland Shopping Plaza. Commencing on the date of the note, and continuing throughout the term of the note, the outstanding principal balance of deferred fees accrues at a simple interest rate of 3.75% per year. A portion of the residual receipts received from the rental income shall be made to the City but is due and payable in full upon the 30th anniversary of this note. The total amount outstanding as of June 30, 2024, was $1,239,179.

On June 7, 2022, the City Council established a Lateral Police Officer Hiring Incentive Program (“Program”), for the purposes of attracting well qualified and seasoned officers to fill current and future police officer positions. On September 5, 2023, the City entered into a Loan Agreement with Officer Michael Muscutt which provided $30,000 for a home purchased in San Luis Obispo County. The term of the loan is 15 years and accrues at an interest rate of 2% per year. Payment begins on the thirteenth month following the effective date. The total amount outstanding as of June 30, 2024, was $30,000.

Fund
Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
General Fund $ 3,404,724 $ - $ - $ 3,404,724
Measure J-20 Fund - 30,000 - 30,000
CDBG Fund 737,690 - - 737,690
Cal Home Loan Fund 103,900 - - 103,900
Transportation Facilities Fund 1,147,762 - - 1,147,762
Public Safety Facilities Fund 85,739 - 6,123 79,616
General Government Facilities Fund 475,381 - - 475,381
Parks and Recreation Facilities Fund 464,778 - - 464,778 Library Facilities Fund 153,362 - - 153,362
Water Fund 339,949 - - 339,949
Wastewater Fund 579,608 - 151 579,457
Total loans receivable $ 7,492,893 $ 30,000 $ 6,274 $ 7,516,619 NOTE 6 – INTERFUND TRANSACTIONS
A. Advances Receivable and Payable
On November 2, 1993, the City entered into an agreement where General Fund resources were loaned to the Chandler Ranch and Olsen Beechwood Specific Plan Fund. Total amount outstanding as of June 30, 2024, for Chandler Ranch was $1,130,537 and Olsen Beechwood was $687,115.

On August 3, 2004, the City entered into an agreement where the General Fund resources were loaned to the Airport Road Project Study Report (PSR) Fund to review improvements to the intersection of Airport Road and Highway 46 East. Total amount outstanding as of June 30, 2024, was $153,222.

On October 1, 2019, the City Council approved Resolution 19-106 where General Fund resources were loaned to the Parking Fund in an amount not-to-exceed $1.0 million to cover the initial start-up costs and infrastructure of the parking program (i.e., pay stations, parking signage, and vehicle license recognitions equipment and software). Total amount outstanding on June 30, 2024, was $623,439.

Attachment 1

B. Transfers Between Funds
With City Council approval, resources may be transferred from one City fund to another. Typically, these transfers are broken down into three categories: miscellaneous transfers, capital transfers, and cost allocation transfers. The main purpose of miscellaneous transfers is to charge one fund for services provided by another fund. Capital transfers are utilized to keep capital projects in a central fund. And lastly, cost allocation transfers are utilized to charge enterprise funds for central services provided by the General Fund. Transfers are identified below:

Miscellaneous Transfers Capital Transfers Cost Allocation Transfers Transfer In Transfer Out Transfer In Transfer Out Transfer In Transfer Out Major Governmental Funds:

General Fund $ - $ 1,231,600 $ 17,189 $ 9,551,894 $ 902,286 $ - Measure J-20 SST Fund - - - 1,259,818 - -
ARPA Fund - - - 985,204 - -
Capital Projects Fund - - 11,989,467 - - -
Nonmajor Governmental
Funds:

L&L District Fund 1,051,600 - - - - -
Landfill Closure Fund 180,000 - - - - -
TIF Fund - - - 166,370 - -
General Gov’t Facilities Fund - - 8,089 - - -
Parks and Rec Facilities Fund - - - 26,181 - -
Enterprise Funds:

Water Fund - - - - - 483,980
Wastewater Fund - - - - - 373,357
Airport Fund - - - - - 44,949
Parking Fund - - - 25,278 - -
Total $ 1,231,600 $ 1,231,600 $ 12,014,745 $ 12,014,745 $ 902,286 $ 902,286 NOTE 7 – DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
On June 30, 2024, deferred outflows and inflows of resources, reported in the governmental fund financial statements, consisted of the following:

Deferred
Outflows of
Resources Deferred Inflows of Resources
Deferred
Interest
Expense
Unavailable
Revenues Leases Total
Major Governmental Funds:

General Fund $ - $ 4,751,716 $ 3,888,920 $ 8,640,636
Measure J-20 Fund - 30,000 - 30,000
Specific Plan Fund 1,036,551 - - -
Nonmajor Governmental Funds: 0
Community Development Block Grant Fund - 890,690 - 890,690 Cal Home Loan Program Fund - 170,740 - 170,740
Transportation Facilities Fund - 1,345,180 - 1,345,180
Public Safety Facilities Fund - 103,704 - 103,704
General Government Facilities Fund - 594,626 - 594,626
Parks and Recreation Facilities Fund - 574,537 - 574,537 Library Facilities Fund - 191,834 - 191,834
Airport Road PSR Fund 88,363 - - -
Total $ 1,124,914 $ 8,653,027 $ 3,888,920 $12,541,947
Attachment 1

On June 30, 2024, deferred outflows and inflows of resources, reported on the Statement of Net Position, consisted of the following:

Governmental
Activities
Business-Type
Activities
Deferred Outflows of Resources:

Deferred loss of refunding bonds $ 195,683 $ -
Deferred OPEB 208,304 51,664
Deferred pensions 16,828,880 2,391,612
Total deferred outflows of resources $ 17,232,867 $ 2,443,276 Deferred Inflows of Resources:

Deferred leases $ 3,888,920 $ 12,494,631
Deferred OPEB 3,233,987 802,099
Deferred pensions 1,240,400 76,664
Total deferred inflows of resources $ 8,363,307 $ 13,373,394 NOTE 8 – LONG-TERM DEBT
A. Compensated Absences
City employees accumulate earned, but unused vacation and other leave pay benefits, which can be converted to cash at termination of employment. Since no means exist to reasonably estimate the amounts that might be liquidated with current available financial resources, if any, they are reported as long-term debt on the Statement of Net Position. No expenditure is reported for these amounts in the fund statements. However, in the Statement of Activities the expenditure is allocated to each function based on usage. The balance of these benefits (payable in accordance with various collective bargaining agreements) on June 30, 2024, totals $3,155,312 for governmental activities and $401,139 for business-type activities.

B. Financed Purchases
On September 12, 2014, the City entered into a lease purchase agreement for the acquisition of multiple pieces of equipment, including a mower, utility trailer, aerator, vehicles, etc., for a total of $864,464. Principal and interest payments are due semi-annually beginning March 12, 2015, with the last payment due September 12, 2024. In accordance with the City’s lease purchase agreement, in any event of default, the equipment would be repossessed. Total amount outstanding on June 30, 2024, was $25,727.

In 2015, the City entered into a $527,000 lease purchase agreement for the purchase of a new Fire Engine, with an annual payment of $59,841 for 10 years, with the first payment beginning on August 15, 2015, and the last payment due August 15, 2024. In accordance with the City’s lease purchase agreement, in any event of default, the equipment would be repossessed. Total amount outstanding on June 30, 2024, was $58,451.

The future minimum payment obligations for each financed purchase is as follows:

Fiscal Year Ending June 30 Equipment
Fire
Engine Total
2025 $ 26,032 $ 59,841 $ 85,873
Total 26,032 59,841 85,873
Less: amount representing interest 305 0 1,390 0 1,695
Present value of net minimum
payment $ 25,727 0 $ 58,451 0 $ 84,178
C. General Obligation Bonds Payable
On February 1, 2019, the City issued $13,095,000 of General Obligation (GO) Bonds with an interest rate of 5% to refund prior GO Bonds with interest rates ranging from 3.5% to 5.0% and par value of $17,320,000. The prior GO Bonds matured annually on August 1 between 2008 and 2028 and were called on March 1, 2019. The current GO Refunding Bonds were issued at a premium of $1,888,198 and, after paying issuance costs of $144,874 and the underwriter’s discount of $42,559, Attachment 1

the net proceeds were $14,795,765. The net proceeds from the issuance of the GO Bonds were deposited into an irrevocable trust with an escrow agent. The current refunding met the requirements of an in-substance defeasance, and the GO Bonds were moved from the City’s Government-Wide financial statements. As a result of the current refunding, the City reduced its total debt service requirements by $5,301,431 which results in an economic gain (difference between the present value of the debt service payments on the old and new debt) of $4,890,150. In accordance with the City’s bond documents, in any event of default, the trustee may upon notice in writing to the City declare the principal of all the 2019 bonds then outstanding, and the interest accrued on the 2019 bonds to be due and payable immediately.

On September 28, 2001, the City issued $6,999,603 in GO Bonds, Series B Capital Appreciation and Term Bonds (2001) for the purpose of providing construction funds for a variety of citywide projects. The outstanding bonds bear a net interest cost of 5.09% and are due in annual installments ranging from $297,970 to $615,806 through January 1, 2028. These bonds are payable from ad valorem taxes levied against all taxable real property in the City (except for certain classes of personal property). In accordance with the City’s bond documents, in any event of default, the trustee may upon notice in writing to the City declare the principal of all the 2001 bonds then outstanding, and the interest accrued on the 2001 bonds to be due and payable immediately.

The annual requirements to amortize general obligation bonds payable are as follows:

Fiscal Year Ending
June 30 Principal Interest Total
2025 $ 1,597,320 $ 653,430 $ 2,250,750
2026 1,660,312 591,188 2,251,500
2027 1,727,352 521,273 2,248,625
2028 1,799,809 0 447,066 0 2,246,875
Total $ 6,784,793 0 $ 2,212,957 0 $ 8,997,750
D. Wastewater Revenue Refunding Bonds Payable
On April 24, 2012, the City issued $6,355,000 of Wastewater Revenue Refunding Bonds with interest rates ranging from

2.0% to 5.0% to refund prior Wastewater Revenue Bonds with interest rates ranging from 3.5% to 5.0% and a par value of $6,895,000. The purpose of the bonds was the retrofitting of the City’s 50-year-old wastewater treatment plant. The prior Wastewater Revenue Bonds matured annually on June 1 between 2012 and 2032. The prior Wastewater Revenue Bonds were called on April 30, 2012. The current Wastewater Revenue Refunding Bonds were issued at a premium of $494,996 and, after paying issuance costs of $123,631 and the underwriter’s discount of $68,538, the net proceeds were $6,657,827.

The net proceeds from the issuance of the Wastewater Revenue Bonds were deposited into an irrevocable trust with an escrow agent who called the bonds on April 30, 2012. The current refunding met the requirements of an in-substance defeasance, and the Wastewater Revenue Bonds were removed from the City’s Government-Wide financial statements.

As a result of the current refunding, the City reduced its total debt service requirements by $1,172,865 which resulted in an economic gain (difference between the present value of the debt service payments on the old and new debt) of $837,029. In accordance with the City’s bond documents, in any event of default, the trustee may upon notice in writing to the City declare the principal of all the 2012 bonds then outstanding, and the interest accrued on the 2012 bonds to be due and payable immediately. The annual requirements to amortize revenue refunding bonds payable are as follows:

Fiscal Year Ending
June 30 Principal Interest Total
2025 $ 355,000 0 $ 119,825 0 $ 474,825
2026 370,000 102,075 472,075
2027 380,000 90,050 470,050
2028 395,000 76,750 471,750
2029 405,000 62,925 467,925
2030-2032 1,300,000 0 98,625 0 1,398,625
Total $ 3,205,000 0 $ 550,250 0 $ 3,755,250
Attachment 1

E. Water Revenue Bond Payable
On March 1, 2019, the City issued $8,118,000 Water Revenue Bonds with an interest rate of 2.85% for the purpose of providing funds for the replacement of the 21st Street Reservoir, an approximately four-million-gallon water storage tank.

The water revenue bonds were issued at par and, after paying issuance costs of $111,173, the net proceeds were $8,006,827. Principal and interest payments are due March 1 and September 1, each year, beginning on September 1, 2019. In accordance with the City’s bond documents, in any event of default, the trustee may upon notice in writing to the City declare the principal of all the 2019 bonds then outstanding, and the interest accrued on the 2019 bonds to be due and payable immediately. The annual requirements to amortize the water revenue bonds payable are as follows:

Fiscal Year Ending
June 30 Principal Interest Total
2025 $ 506,627 $ 160,956 $ 667,583
2026 521,169 146,414 667,583
2027 536,128 131,455 667,583
2028 551,516 116,067 667,583
2029 567,346 0 100,237 0 667,583
2030-2034 3,090,553 0 247,361 0 3,337,914
Total $ 5,773,339 0 $ 902,490 0 $ 6,675,829
F. Landfill Closure, Post-Closure, and Corrective Action State Financial Assurance Mechanism regulations require landfill operators to set aside funds, or provide alternative funding mechanisms, to fund the closure, post-closure, and corrective action maintenance of landfills. Closure, postclosure and corrective action care costs include, but are not limited to, such items as final cover, groundwater monitoring, well installations and landfill gas monitoring systems. The funding must be completed prior to the final date of closure.

These regulations apply to solid waste landfills that have been or will be operated on or after January 1, 1988.

The City currently has one landfill that is subject to State and Federal regulations. Total permitted capacity for this landfill is 4,701,338 tons. As of June 30, 2024, the remaining permitted capacity was at 3,007,004 tons with the actual capacity filled during the fiscal year at 1,694,384 tons. The estimated year of closure is currently set at 2062.

The annually inflated landfill closure, post-closure and corrective action care cost estimates of $5,905,629, $7,387,893 and $190,321, respectively, for a total of $13,483,843, are based upon the most recently submitted Closure, Post-Closure and Corrective Action Maintenance Plan documents filed with the State permitting agencies. If, at some future date, these closure cost estimates are adjusted (due to change in inflation, technology, regulations, etc.), the City is required to make corresponding changes in the amount of funds deposited for closure.

Each fiscal year a portion of the landfill’s estimated closure and post-closure cost is recognized as an expense and liability based upon the amount of capacity used during the fiscal year. As of June 30, 2024, the cumulative liability recorded by the City based upon landfill capacity usage is $4,859,578. The remaining $8,624,265 of estimated closure, post-closure and corrective action costs will be recorded and funded as landfill capacity is used.

G. Loans Payable
On March 12, 2013, the City entered into an installment sale agreement with the State Water Resource Control Board for the construction of the Wastewater Treatment Plant. Annual installments, including accrued interest, began on September 1, 2016, one year after completion of construction. In the event a default has occurred, the City may be required, upon demand, immediately to do each of the following: 1) return to the State Water Board any grant or principal forgiveness amounts received pursuant to this Agreement; 2) accelerate the payment of any principal owed under this Agreement, all of which shall be immediately due and payable; 3) pay interest at the highest legal rate on all of the foregoing; and 4) pay any additional payments. The current balance on June 30, 2024, is $29,214,404.

On December 11, 2013, the City entered into a loan agreement with the State of California, Department of Transportation (DOT) for the Airport Fuel Facility project, with an annual payment of $49,465 for 17 years, with the first payment beginning Attachment 1

on January 30, 2015, and the last payment due January 30, 2031. In the event a default has occurred, the State can take one or more of the following actions: 1) declare the entire outstanding principal amount of the loan and all accrued interest thereon immediately due and payable; 2) notify the City that they may ineligible for future financing under this program.

The current balance on June 30, 2024, is $296,473.

On March 7, 2017, the City entered into an installment sale agreement with the State Water Resources Control Board for the construction of Tertiary Treatment Facilities at the Wastewater Treatment Plant in the amount of $14.4 million. Annual installments, including accrued interest, began on December 19, 2019, one year after completion of construction. This project, by way of producing recycled water, was eligible for a loan forgiveness grant in the amount of $4.0 million. In the event a default has occurred, the City may be required, upon demand, immediately to do each of the following: 1) return to the State Water Board any grant or principal forgiveness amounts received pursuant to this Agreement; 2) accelerate the payment of any principal owed under this Agreement, all of which shall be immediately due and payable; 3) pay interest at the highest legal rate on all of the foregoing; and 4) pay any additional payments. The current balance on June 30, 2024, is $8,913,143.

On June 9, 2017, the City entered into a loan agreement with Siemens Industry, Inc., Building Technologies Division for the replacement and upgrade of lighting, heating, ventilation, and air conditioning units on a number of City facilities including City Hall, Library, Public Safety Center, Centennial Park, and Senior and Veterans Center. Annual payments, including interest, are $205,469 per year for the next 15 years, with the first payment beginning on September 9, 2018, and the last payment due June 9, 2033. The debt payments will be offset, in part, by energy savings generated by the upgrade equipment. In accordance with the purchase agreement, in any event of default, the equipment would be repossessed.

The current balance on June 30, 2024, is $1,597,737.

On April 11, 2023, the City entered into an installment sale agreement with the State Water Resources Control Board for the construction of the Paso Robles Recycled Water Distribution System in the amount of $22.1 million. Annual installments, including accrued interest, will be begin one year after completion of construction. On June 30, 2024, the project is still in progress and as such, an amortization schedule has not been finalized. Loan disbursed as of June 30, 2024, was $1,546,598.

The future minimum payment obligations for loans payable are shown below:

Fiscal Year Ending June 30
Wastewater
Treatment
Plant
Airport Fuel
Facility
Tertiary
Treatment
Facilities
HVAC &
Lighting Total
2025 $ 2,711,858 $ 49,465 440,615 205,469 3,407,407
2026 2,711,858 49,465 440,615 205,469 3,407,407
2027 2,711,858 49,465 440,615 205,469 3,407,407
2028 2,711,858 49,465 440,615 205,469 3,407,407
2029 2,711,858 49,465 440,615 205,469 3,407,407
2030-2034 13,559,289 98,929 2,203,075 821,874 16,683,167 2035-2039 5,423,717 - 2,203,075 - 7,626,792
2040-2044 - - 2,203,075 - 2,203,075
2045-2049 - - 2,203,075 - 2,203,075
Total 32,542,296 346,254 11,015,375 1,849,219 45,753,144 Less: amount representing interest 3,327,892 0 49,781 2,102,232 0 251,482 0 5,731,387 Present value of net minimum
payment $29,214,404 0 $ 296,473 0 $ 8,913,143 0 $ 1,597,737 0 $40,021,757 H. Net Other Post-Employment Benefits Liability
In accordance with GASB Statement No. 75, the City is required to measure and report liabilities associated with OPEB. The City’s estimated net OPEB liability on June 30, 2024, was $4,973,273. See Note 12 for further detail.

Attachment 1

I. Net Pension Liability
In accordance with GASB Statement No. 68, the City is required to measure and report liabilities associated with its pension liability. Pension expense is charged to functions and programs based on their proportionate share of total payroll cost.

The City’s estimated net pension liability on June 30, 2024, was $52,297,388. See Note 11 for further detail.

J. Changes in Long-Term Liabilities
Long-term liability activity for the fiscal year ended June 30, 2024, is as follows:

Governmental Activities
Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Due Within
One Year
Compensated absences $ 2,976,592 $ 178,720 $ - $ 3,155,312 $ 788,828 Financed purchases 159,789 - 87,931 71,858 71,858
General obligation bonds payable 8,320,902 - 1,536,109 6,784,793 1,597,320 Premium on GO bonds 1,048,998 - 209,800 839,198 209,800 Landfill closure, post-closure costs 4,552,750 306,828 - 4,859,578 - Loans payable 1,748,210 - 150,473 1,597,737 155,424
Net OPEB liability 4,532,762 1,164,860 1,712,696 3,984,926 - Net pension liability 39,202,830 16,675,959 11,923,407 43,955,382 - Total $ 62,542,833 $ 18,326,367 $ 15,620,416 $ 65,248,784 $ 2,823,230 Business-Type Activities
Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Due Within
One Year
Compensated absences $ 409,191 $ - $ 8,052 $ 401,139 $ 100,285 Financed purchases 32,037 - 19,717 12,320 12,320
Wastewater bonds payable 3,540,000 - 335,000 3,205,000 355,000 Premium on wastewater bonds 222,747 - 24,750 197,997 24,750 Water bonds payable 6,265,830 - 492,491 5,773,339 506,627 Loans payable 40,922,501 1,546,598 2,498,481 39,970,618 2,541,798 Net OPEB liability 1,095,212 288,913 395,778 988,347 -
Net pension liability 8,232,055 2,637,286 2,527,335 8,342,006 - Total $ 60,719,573 $ 4,472,797 $ 6,301,604 $ 58,890,766 $ 3,540,780 K. Legal Debt Margin
California Government Code Section 43605 establishes a legal debt limit of 15% of gross assessed valuation for municipalities. However, this provision was enacted when assessed valuation was established based on 25% of market value. Effective in fiscal year 1981-82, taxable property is assessed at 100% of market value. Although the debt limit provision has not been amended by the State since this change, the percentage has been proportionately modified to

3.75% for the purposes of this calculation for consistency with the original intent of the State's limit.

For fiscal year 2023-24, the total assessed valuation was $6,562,639,642, for a total debt limit of $246,098,987. The total amount of debt subject to this limit was $8,455,905, resulting in a legal debt margin of $237,643,082.

NOTE 9 – NACIMIENTO WATER PROJECT
The City entered into a contract with the San Luis Obispo County Financing Authority (SLO Authority). The SLO Authority was created on August 15, 2000, to issue bonds for the purpose of financing part or all of the costs of the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible property. On September 26, 2007, the SLO Authority issued $196,410,000 of revenues bonds for the Nacimiento Water Project. On May 7, 2018, the SLO Authority refunded said bonds.

The City is considered a participating agency of the SLO Authority and the City’s share of the Nacimiento Water Project is based upon the City’sshare of the quantity of water to be distributed by the SLO Authority from Nacimiento Lake. The City is obligated to pay for the debt service of the SLO Authority based on its water share. The City is further obligated to make contract payments until September 2040. The future minimum contract payments for the debt service are shown as follows:

Attachment 1

Fiscal Year Ending
June 30
Net Annual Debt
Service
2025 $ 4,163,664
2026 4,164,954
2027 4,166,842
2028 4,164,352
2029 4,169,413
2030-2034 20,833,110
2035-2039 20,822,776
2040-2041 8,170,739
Total $ 70,655,850
NOTE 10 – LEASES PAYABLE AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY AGREEMENTS On August 1, 2017, the City entered into a 60-month lease agreement (City as lessee) for the use of building and improvements located at 821 Pine St, Unit A (also known as the “City Hall Annex”). On August 1, 2022, the term of the lease was extended for an additional two years. An initial lease liability was recorded on July 1, 2021, in the amount of $127,327 and as of June 30, 2024, with the additional term extension, the value of the lease liability is $217,286. The City is required to make monthly fixed payments of $8,005 and has an interest rate of 2.445%. The interest rate was determined by using the City’s incremental borrowing rate which uses municipal bond yields at the time the City entered into this agreement. The building’s estimated useful life exceeds the lease contract term, so the lease term was used to determine amortization expense. The value of the right-to-use leased asset as of June 30, 2024, was $426,701, with accumulated amortization of $307,371, resulting in a net value of $119,330. See Note 3 – Capital Assets for further detail.

On April 25, 2021, the City entered into a 24-month lease agreement (City as lessee) for the use of building and improvements located at 625 Riverside Avenue (also known as the “Corporation Yard”). An initial lease liability was recorded on July 1, 2021, in the amount of $367,252 and as of June 30, 2024, the value of the lease liability is $9,999. The City is required to make monthly fixed payments of $10,000 and has an interest rate of 0.3160%. The interest rate was determined by using the City’s incremental borrowing rate which uses municipal bond yields at the time the City entered into this agreement. The building’s estimated useful life exceeds the lease contract term, so the lease term was used to determine amortization expense. The value of the right-to-use leased asset as of June 30, 2024, was $367,252, with accumulated amortization of $357,327, resulting in a net value of $9,925. City has one option to extend for an additional 12-months. See Note 3 – Capital Assets for further detail.

On July 15, 2021, the City entered into a 24-month subscription agreement for the use of ArcGIS, a geographic information mapping and analysis solution. An initial subscription liability was recorded on July 1, 2022, in the amount of $63,490 and as of June 30, 2024, the value of the lease liability is $0. The City is required to make annual payments of $38,500 and has an interest rate of 2.0237%. The interest rate was determined by using the City’s incremental borrowing rate which uses municipal bond yields at the time the City entered into this agreement. The value of the right-to-use subscription as of June 30, 2024, was $63,490, with accumulated amortization of $62,364, resulting in a net value of $1,126. See Note 3 – Capital Assets for further detail.

On June 30, 2022, the City entered into a 48-month subscription agreement for the use of eScribe, a City Council agenda preparation software solution. An initial subscription liability was recorded on July 1, 2022, in the amount of $63,909 and as of June 30, 2024, the value of the lease liability is $35,173. The City is required to make annual payments of $18,090 and has an interest rate of 1.902%. The interest rate was determined by using the City’s incremental borrowing rate which uses municipal bond yields at the time the City entered into this agreement. The value of the right-to-use subscription as of June 30, 2024, was $63,909, with accumulated amortization of $31,954, resulting in a net value of $31,955. See Note 3 – Capital Assets for further detail.

On August 22, 2022, the City entered into a 36-month subscription agreement for the use of Desigo Software, an HVAC-related building management solution. An initial subscription liability was recorded on September 1, 2022, in the amount of $35,923 and as of June 30, 2024, the value of the lease liability $7,228. The City is required to make annual payments of $7,385 and has an interest rate of 2.1843%. The interest rate was determined by using the City’s incremental borrowing rate which uses Attachment 1

municipal bond yields at the time the City entered into this agreement. The value of the right-to-use subscription as of June 30, 2024, was $35,923, with accumulated amortization of $21,953, resulting in a net value of $13,970. See Note 3 – Capital Assets for further detail.

A summary of the leases and subscription payable for the fiscal year ended June 30, 2024, is as follows:

Governmental Activities
Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Due Within
One Year
Leases payable $ 438,969 $ - $ 211,684 $ 227,285 $ 107,184 Subscriptions payable 113,337 - 70,936 42,401 24,648
Total $ 552,306 $ - $ 282,620 $ 269,686 $ 131,832
The future minimum right-to-use lease and subscription payments are shown below:

Leases Payable Subscriptions Payable
Fiscal Year Ending
June 30 Principal Interest Total Principal Interest Total 2025 $ 107,184 $ 4,236 $ 111,420 $ 24,648 $ 827 $ 25,475 2026 102,660 1,796 104,456 17,753 337 18,090
2027 17,441 53 17,494 - - -
Total $ 227,285 0 $ 6,085 0 $ 233,370 $ 42,401 $ 1,164 $ 43,565 NOTE 11 – DEFINED BENEFIT PENSION PLANS
A. General Information about the Pension Plans
Plan Description: The City participates in two separate types of employer plans where all qualified permanent and probationary employees are eligible to participate, depending on the employee classification: 1) Miscellaneous Employee Pension Plan, an agent multiple-employer defined benefit plan or 2) Safety Employee Pension Plan, a cost-sharing employer defined pension plan. Both 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 Miscellaneous and Safety 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 (https://www.calpers.ca.gov). CalPERS does not, however, provide separate reports for the City's Safety and Miscellaneous Plans.

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 nonduty 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 Miscellaneous and Safety Plans’ provisions and benefits in effect on June 30, 2024, are summarized below:

Miscellaneous Employee Plan
Tier I Tier II1 Tier III (PEPRA)
Hire date Prior to
May 27, 2012
On or after
May 27, 2012
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payment Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-63 52-67
Monthly benefits, as a % of eligible
compensation 2.00% to 2.70% 1.43% to 2.42% 1.00% to 2.50% Attachment 1

Miscellaneous Employee Plan
Tier I Tier II1 Tier III (PEPRA)
Final average compensation period One year Three year Three year Required employee contribution rate 8.000% 7.000% 7.750% Required employer normal cost rate 10.370% 10.370% 10.370% Required employer payment of UAL2 |--------------------------------------$2,129,057--------------------------------------| Police Safety Employee Plan
Tier I Tier II1 Tier III (PEPRA)
Hire date Prior to
May 27, 2012
On or after
May 27, 2012
On or after
January 1, 2013
Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payment Monthly for life Monthly for life Monthly for life Retirement age 50 50-55 50-57
Monthly benefits, as a % of eligible
compensation 3.00% 2.40% to 3.00% 2.00% to 2.70%
Final average compensation period One year Three year Three year Required employee contribution rate 9.000% 9.000% 13.750% Required employer normal cost rate 27.110% 22.830% 13.540% Required employer payment of UAL $936,170 $ - $362
Fire Safety Employee Plan
Tier I Tier II1 Tier III (PEPRA)
Hire date Prior to
May 27, 2012
On or after
May 27, 2012
On or after
January 1, 2013
Benefit formula 3.0% @ 55 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payment Monthly for life Monthly for life Monthly for life Retirement age 50 50-55 50-57
Monthly benefits, as a % of eligible
compensation 3.00% 2.40% to 3.00% 2.00% to 2.70%
Final average compensation period One year Three year Three year Required employee contribution rate 9.000% 9.000% 13.750% Required employer normal cost rate 24.150% 22.830% 13.540% Required employer payment of UAL $399,666 $ - $1,123
Note to table above:
1- Second tier will only apply to employees transferring from another CalPERS agency or one with reciprocity on or after May 27, 2012. 2- The Miscellaneous Plan’s required employer payment of the Unfunded Actuarial/Accrued Liability (UAL) was calculated for the entire plan and is not allocated by Tier.

Employees Covered: On June 30, 2024, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Miscellaneous
Plan
Inactive employees or beneficiaries currently receiving benefits 172 Inactive employees entitled to but not yet receiving benefits 121 Active employees 135
Total 428
Contributions: Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the fiscal year, with an additional amount to finance any unfunded accrued liability.

Attachment 1

The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

B. Pension Liability, Pension Expense, and Deferred Outflows and Inflows of Resources Related to Pensions Net Pension Liability: The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the plan’s fiduciary net position. On June 30, 2024, the City reported a net pension liability of $30,592,989 for the Miscellaneous Plan.

The City’s net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. On June 30, 2024, the City reported a net pension liability of $21,704,399 for the Safety Plan. 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 proportionate share of the net pension liability for the Safety Plan as of June 30, 2022 and 2023 was as follows:

Safety
Plan
Proportion – June 30, 2022 0.1891%
Proportion – June 30, 2023 0.1705%
Increase (decrease) in proportion - 0.0186%
The net pension liability of both the Miscellaneous and Safety Plans are measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Pension Expense: For the fiscal year ended June 30, 2024, the City recognized pension expense in the amount of $4,441,121 for the Miscellaneous Plan and $2,058,878 for the Safety Plan. Pension expense represents the change in the net pension liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method, and plan benefits.

Actuarial Assumptions: The total pension liabilities actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous and Safety Plans
Valuation date June 30, 2022
Measurement date June 30, 2023
Actuarial cost method Entry age normal
Actuarial assumptions:

Inflation 2.300%
Salary increases Varies by entry age and service
Payroll growth 2.75%
Investment rate of return 6.90% net pension plan investment and administrative expense; includes inflation
Retirement age The probabilities of retirement are based on the 2021 CalPERS’ Experience Study for the period from 1997 to 2015.

Mortality
The probabilities of mortality are based on the 2021 CalPERS’ Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. 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, combined with risk estimates, and are used to project compound (geometric) returns over the long-term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In Attachment 1

addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS’ Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.

Discount Rate: The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Long-Term Expected Rate of Return: The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows:

Asset Class
Assumed Asset
Allocation
Real Return
Years 1-101,2
Global Equity – cap-weighted 30.00% 4.45%
Global Equity – non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage Backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Note to table above
1 – An expected inflation of 2.30% used for this period. 2 – Figures are based on the 2021 Asset Liability Management Study.

Changes in Net Pension Liability: The changes in net pension liability for the Miscellaneous Plan are shown below:

Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balance on July 1, 2023 $ 94,087,615 $ 64,810,279 $ 29,277,336 Changes in the fiscal year:

Service cost 1,998,150 - 1,998,150
Interest on total pension liability 6,462,524 - 6,462,524 Changes of benefit terms 109,086 - 109,086
Differences between expected and actual experience 1,054,411 - 1,054,411 Contributions – employer - 3,107,204 (3,107,204)
Contributions – employee - 1,228,259 (1,228,259)
Net investment income/(loss) - 4,020,713 (4,020,713)
Benefit payments, including refunds of employee
contributions (5,180,804) (5,180,804) -
Administrative expenses - (47,658) 47,658
Net change in fiscal year 4,443,367 3,127,714 1,315,653 Attachment 1

Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balance on June 30, 2024 $ 98,530,982 $ 67,937,993 $ 30,592,989 Sensitivity of the Net Pension Liability to Changes in the Discount Rate: The following represents the City’s proportionate share of the net pension liability calculated using the discount rate of 6.90 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90 percent) or 1- percentage point higher (7.90 percent) than the current rate:

Net pension liability
Discount
Rate -1%
(5.90%)
Current
Discount
Rate (6.90%)
Discount
Rate +1%
(7.90)
Miscellaneous Plan $ 43,202,188 $ 30,592,989 $ 20,123,752 Safety Plan 33,809,427 21,704,399 11,807,677
Total $ 77,011,615 $ 52,297,388 $ 31,931,429
Pension Plans’ Fiduciary Net Position: Detailed information about the Miscellaneous and Safety Plans’ fiduciary net position is available in the separately issued CalPERS’ financial reports.

Deferred Outflows and Inflows of Resources Related to Pensions: On June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to Miscellaneous and Safety Plans pension from the following sources:

Miscellaneous Plan Safety Plan
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 3,300,108 $ - $ 2,823,911 $ - Changes of assumptions 1,313,490 - 1,293,996 -
Differences between expected and actual experiences 559,694 - 1,488,484 - Net difference between projected and actual earnings
on pension plan investments $ 3,087,531 $ - $ 3,034,252 $ - Differences in proportions - - 2,045,232 -
Differences in actual contributions and proportionate
share of contributions - - - (1,043,483)
Total $ 8,260,823 $ - $ 10,685,875 $ (1,043,483)
The reported deferred outflows of resources related to pensions in the amount of $3,300,108 and $2,823,911 resulting from City contributions subsequent to the measurement date will be recognized as a reduction in net pension liability in the 2024-25 fiscal year. The additional amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as pension expense as shown below:

Fiscal Year Ending
June 30
Miscellaneous
Plan
Safety
Plan
2024 $ 1,447,458 $ 2,181,027
2025 1,094,919 1,165,755
2026 2,335,059 3,384,007
2027 83,279 84,692
Total $ 4,960,715 $ 6,818,481
C. Payable to the Pension Plans
The City had no amount outstanding for contributions to the pension plans for the fiscal year ended June 30, 2024.

Attachment 1

NOTE 12 – OTHER POST-EMPLOYMENT BENEFITS
A. General Information about Other Post-Employment Benefits Plan Description: The City provides other post-employment benefits (OPEB), a single employer contribution plan, in accordance with State statutes, to all employees retiring from the City and enrolled in an insurance program under the California Public Employees’ Medical and Hospital Care Act (PEMHCA). Providing healthcare benefits under the City’s group health plan may provide benefits at a substantially lower cost than if the retirees purchased their own individual benefits.

For the fiscal year ending June 30, 2024, the City contracted with Total Compensation Systems, Inc. to prepare the GASB Statement No. 75 Actuarial Valuation Report. This report was prepared in compliance with the requirements set forth in GASB Statement No. 75, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other than Pensions. The report can be viewed on the City’s website.

Benefits Provided: The City is required to contribute the PEMHCA minimum to CalPERS on behalf of annuitants eligible for, and participating in, CalPERS health insurance. The City joined the CalPERS health program in 2015, contracting for the “unequal” minimum contribution amount to annuitants. The unequal minimum contribution increases annually by the number of years an agency contracts multiplied by 5% of the current monthly contribution for active employees, for 20 years, at which point it becomes 100% and equal. A history of the full minimum required contribution and the City’s partial minimum required contribution is presented below:

Calendar Year
Full Minimum Required
Contribution
City’s Minimum Required
Contribution
2015+ $122 $1.00
2016+ $125 $6.25
2017+ $128 $12.80
2018+ $133 $19.95
2019+ $136 $27.20
2020_ $139 $34.75
2021_ $143 $42.90
2022_ $149 $52.15
2023_ $151 $60.40
2024_ $157 $70.65
2025+ Adjusted annually to reflect
medical portion of Consumer
Price Index (CPI)
Adjusted annually to reflect
medical portion of CPI & years of
participation
In addition to the City’s contributions under PEMHCA stated above, the City has agreed to provide the following retiree medical reimbursement:
• Retirees in the Management, Police, Fire and Service Employees International Union (SEIU) labor groups that were hired before January 1, 2012, and who have a minimum of 10 years of service with the City, are eligible for medical reimbursements up to $500 per month (including PEMHCA minimum) with no age limitation.
• Retirees in the Management, Police, Fire and SEIU labor groups that were hired on or after January 1, 2012, and who have a minimum of 20 years of service with the City, are eligible for medical reimbursements up to $500 per month (including the PEMHCA minimum) until the Medicare eligible age of 65.

Employees Covered: On June 30, 2024, the following current and former employees were covered by the benefit terms under the plan membership:

Attachment 1

Inactive employees or beneficiaries currently receiving benefits 119 Inactive employees entitled to but not yet receiving benefits - Active employees 244
Total 363
Contributions: The City’s OPEB plan is established by agreements with the applicable employee labor groups and may be amended by agreements between the City and the labor groups. The City is not required to fund based on the actuarially determined contribution; however, the City has established an employer investment program with Mission Square investments to prefund OPEB obligations. For the fiscal year ended June 30, 2024, the City’s cash contributions were $349,500 in payments to this trust.

B. OPEB Liability, OPEB Expense, and Deferred Inflows and Outflows of Resources Related to OPEB Net Other Post-Employment Benefit Liability: The City’s net OPEB liability is measured as the total OPEB liability, less the plan’s fiduciary net position. On June 30, 2024, the City reported a net OPEB liability of $4,973,273.

OPEB Expense: For the fiscal year ended June 30, 2024, the City recognized other post-employment benefit expense in the amount of $250,149. Other post-employment benefit expense represents the change in net OPEB liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or methods, and plan benefits.

Actuarial Assumptions: The City’s net OPEB liability is based on the following actuarial methods and assumptions:

Valuation date June 30, 2024
Measurement date June 30, 2024
Measurement period July 1, 2023 to June 30, 2024
Actuarial cost method Entry age normal
Actuarial assumptions:

Funding practice
The City does not currently have a pre-funding policy but has been making annual contributions of $349,500 to the trust. The projection of cash flows used to determine the discount rate assumed future pre-funding contributions of $349,500 are made to the trust.

Asset return 6.20% per annum
Discount rate 5.43% per annum, net of expenses
Inflation 2.50% per annum
Payroll increases 2.75% per annum, plus merit scale increases Pre-retirement turnover According to the termination rates under the most recent CalPERS pension plan valuations.

Mortality 2017 CalPERS Mortality for Safety, Miscellaneous and Schools Employees Retirement age According to the retirement rates under the most recent CalPERS pension plan valuation.

Participation rates
100% of eligible active employees are assumed to elect medical coverage at retirement. Future retirees are assumed to elect similar coverage as current retirees. Actual plan coverage is used for current retirees.

Spouse coverage
80% of future retirees are assumed to elect coverage for their spouse.

Male spouses are assumed to be three years older than female spouses.

Actual spouse coverage and spouse ages are used for current retirees.

Dependent coverage Not explicitly valued.

Claim cost development
The valuation claim costs are based on the premiums paid for medical insurance coverage. The City participates in CalPERS, a community rated plan. An implicit rate subsidy can exist when the non-Medicare rates for retirees are the same as for active employees. Since non-Medicare eligible Attachment 1

retirees are typically much older than active employees, their actual medical costs are typically higher than for active employees. The current valuation contains an estimate of the implicit rate subsidy.

Medical trends
Assumed 4.00% per year. Long-term trend assumption is based on the conclusion that, while medical trend will continue to be cyclical, the average increase over time cannot continue to outstrip general inflation by a wide margin. Trend increases in excess of general inflation result in dramatic increases in unemployment, the number of uninsured and the number of underinsured. These effects are nearing a tipping point which will inevitably result in fundamental changes in health care finance and/or delivery which will bring increases in health care costs more closely in line with general inflation. As a result, it is reasonable to project historical trend vs. inflation differences several decades into the future.

Medicare participation 100%
Minimum contributions The minimum required contribution increases each year based on medical portion of CPI. The assumed increase is 4% per year.

Maximum contributions The City’s maximum contribution is assumed to remain constant in all future years.

Actuarial value of assets Eligible plan assets will be valued on a market value basis.

Discount Rate: The long-term expected rate of return of OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of June 30, 2024, are summarized in the following table:

Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
All Equities 78.0% 7.25%
All Fixed Income 16.0% 4.25%
Other 6.0% 7.25%
Total 100.0%
Long-term expected rate of return is 6.2%.

The discount rate used to measure the total OPEB liability was 5.43%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at a rate of $349,500 per year, reduced by future employees’ normal costs. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in Net OPEB Liability: The changes in the net OPEB liability for the City are as follows:

Total OPEB
Liability
Plan Fiduciary
Net Position Net OPEB Liability
Balance on July 1, 2023 $ 14,844,782 $ 9,216,808 $ 5,62,7974 Changes in the fiscal year:

Service cost 502,442 - 502,442
Interest on total OPEB liability 783,558 - 783,558
Differences between expected and actual experience 167,773 - 167,773 Changes of assumptions (181,983) - (181,983)
Employer contributions - 491,528 (491,528)
Attachment 1

Total OPEB
Liability
Plan Fiduciary
Net Position Net OPEB Liability
Net investment income/(loss) $ - $ 1,434,963 $ (1,434,963) Benefit payments (790,203) (790,203) -
Net change in fiscal year 481,587 1,136,288 (654,701)
Balance on June 30, 2024 $ 15,326,369 $ 10,353,096 $ 4,973,273 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate: The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower and one percentage point higher than the current rate, for the measurement period ending on June 30, 2024:

Discount Rate
-1% (4.43%)
Current
Discount Rate
(5.43%)
Discount Rate
+1% (6.43%)
Net OPEB liability $ 6,690,050 $ 4,973,273 $ 3,517,604
Sensitivity of the Net OPEB Liability to Changes in Health Care Cost Trend Rates: The following represents the net OPEB liability of the City if it were calculated using healthcare cost trend rates that are one percentage point lower and one percentage point higher than the current rate, for measurement period ending on June 30, 2024:
1% Decrease
(3.0%)
Current
Healthcare
Cost Trend
Rates (4.00%)
1% Increase
(5.0%)
Net OPEB liability $ 4,245,874 $ 4,973,273 $ 5,890,223
OPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan’s fiduciary net position is shown below:

Assets June 30, 2024
Investments:

Balanced funds $ 10,336,380
Stable value 16,716
Total assets 10,353,096
Net position restricted for OPEB $ 10,353,096
Additions
Employer contributions $ 491,528
Net investment income/(loss) 1,434,963
Total additions 1,926,491
Deletions
Benefit payments 790,203
Total deletions 790,203
Change in net position 1,136,288
Net position restricted for OPEB
Beginning of fiscal year 9,216,808
End of fiscal year $ 10,353,096
Recognition of Deferred Outflows and Deferred Inflows of Resources: Gains and losses related to changes in net OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and Attachment 1

deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period for all sources is five (5) years.

Deferred Outflows and Inflows of Resources Related to OPEB: On June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of assumptions $ 520,795 $ (3,828,172)
Difference between expected and actuarial experience in measurement of the total OPEB liability 368,307 (108,340) Difference between projected and actual earnings on
OPEB plan investments - (728,709)
Total $ 889,102 $ (4,665,221)
Amounts reported as deferred inflows and outflows of resources related to OPEB will be recognized as expense as follows:

Fiscal Year Ending
June 30
Deferred
Inflows and
Outflows of
Resources
2024 $ (803,647)
2025 (405,686)
2026 (756,551)
2027 (645,133)
2028 (470,577)
Thereafter (694,525)
Total $ (3,776,119)
NOTE 13 – OTHER EMPLOYEE BENEFITS
A. Deferred Compensation Plan
City employees may defer a portion of their compensation under one separate, optional City-sponsored deferred compensation plan, ICMA-RC, created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death, or in an emergency as defined by the plan.

Effective January 1, 1998, the law governing deferred compensation plan assets now requires plan assets to be held for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under this new plan are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements.

In accordance with adopted wage and benefit agreements and memorandums of understanding, the City makes contributions to City-sponsored deferred compensation plan for all employees. For employees in the unrepresented confidential, professional and management group (MGMT), the City contributes $5,000 annually with no matching required from the employee. Executive managers, a sub-group of MGMT employees, are eligible to receive up to an additional $2,500 in contributions with a one-to-one matching requirement. For employees in the Service Employees International Union (SEIU), the City will match employee contributions to a maximum of $25 per pay period, or $650 per year. For the fiscal year ended June 30, 2024, the total City contribution on behalf of eligible employees was $322,329.

Attachment 1

B. Section 125 Benefit Plan
The City has a Section 125-benefit plan established pursuant to Section 125 of the IRS code. Under this plan, eligible employees may elect to contribute pre-tax dollars into any combination of the following two benefit categories: 1) unreimbursed medical spending account; 2) dependent day care spending account.

Under no circumstances may an employee direct more than $5,000 annually into the Dependent Day Care Spending Account and more than $3,200 into the Unreimbursed Medical Spending Account. All regular full-time employees employed on a regular and continuous basis, including certain contractual employees, are eligible to participate in this plan. Temporary and casual employees are not eligible. The plan year adopted by the City begins on January 1 and ends on December 31. To obtain reimbursement of expenses incurred within a plan year within the spending accounts, employees must submit claims within 90 days of the end of the plan year or within 30 days from separation of service from the City. Funds unclaimed after 90 days of the close of the plan year are then remitted to the City.

NOTE 14 – FUND BALANCES AND DEFICITS
Fund balance is the difference between the assets added to deferred outflows of resources and liabilities added to deferred inflows of resources reported in governmental funds. In compliance with GASB Statement No. 54, the composition of the City’s fund balance is shown below:

General
Fund
Measure J-20
Supplemental
Sales Tax
Fund
American
Rescue Plan
Act Fund
Specific
Plans Fund
Capital
Projects
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Nonspendable:

Advances receivable $ 2,594,313 $ - $ - $ - $ - $ - $ 2,594,313 Prepaid items 254,297 - - - - - 254,297
Restricted for:

Aquatic facility expansion - - - - - 461,093 461,093
Bike and pedestrian expansion - - - - - 546,386 546,386 Debt service - - - - - 2,863,334 2,863,334
Disability access and
compliance - - - - - 121,249 121,249
Health and welfare - - - - - 454,405 454,405
Landfill maintenance - - - - - 4,959,059 4,959,059
Landscape and lighting
maintenance - - - - -

$1,772,181

$1,772,181
Library facility expansion - - - - - 2,238,239 2,238,239 Park development - - - - - 4,611,896 4,611,896
Public, education, government
access - - - - - 426,213 426,213
Public facility expansion - - - - - 9,693,459 9,693,459 Public safety facility expansion - - - - - 1,479,351 1,479,351 Road maintenance - - - - - 4,327,931 4,327,931
Storm drain development - - - - - 123,610 123,610
Transportation facilities - - - - - 3,060,237 3,060,237 Committed to:

Fire, Police, or Street Repair - 20,592,455 - - - - 20,592,455 Assigned for:

Art in public places 694 - - - - - 694
Building repair and replacement 4,480,295 - - - - - 4,480,295 Capital projects - - 152,104 - 10,221,654 - 10,373,758
Economic development 313,996 - - - - - 313,996
Street and road capital projects - - - - 19,713,723 - 19,713,723 Unassigned 17,963,607 - - (1,314,069) - (228,738) 16,438,300 Total fund balances (deficits) $ 25,607,202 $ 20,592,455 $ 152,104 $ (1,314,069) $ 29,935,377 $ 36,909,905 $111,882,974 As of June 30, 2024, the Specific Plans, CDBG, and Airport Road PSR funds had a fund deficit in the amount of $1,314,069, 75,516, and $153,222, respectively. For the Specific Plans and Airport Road PSR funds, the funds will begin to have positive fund balance once development occurs. For the CDBG Fund, the fund will begin to have a positive fund balance when grant revenues are received.

Attachment 1

NOTE 15 – FUNDS WITH EXPENDITURES EXCEEDING APPROPRIATIONS The following funds had expenditures exceeding appropriations during the fiscal year:

Nonmajor Governmental Funds:

Transportation Facilities Capital Project Fund $ 16,150 Total $ 16,150
NOTE 16 – SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill IX 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 that previously had reported a Redevelopment Agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a Redevelopment Agency, either the City or another unit of local government will agree to serve as the “Successor Agency” to hold the assets until they are distributed to other units of state and local government.

One January 17, 2012, the City Council elected to become the Successor Agency for the former Redevelopment Agency in accordance with the Bill as part of City Resolution Number 12-005.

After enactment of the law, which occurred on June 28, 2011, Redevelopment Agencies in the State of California could not enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, Successor Agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former Redevelopment Agency until all enforceable obligations of the prior Redevelopment Agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between Redevelopment Agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the Successor Agency by the Bill.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011), all Redevelopment Agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012.

A. Notes Receivable
On May 4, 2004, the RDA, subsequently the Successor Agency to the former Redevelopment Agency of Paso Robles, entered into an agreement with Canyon Creek Limited Partnership, to defer certain development related fees in order to construct a multi-family residential housing project consisting of 68 residential units, 49% of which (33 units) are rented to qualified low-income persons and families. The amount of fees deferred total $300,000. Total outstanding balance as of June 30, 2024, including accrued interest, was $480,752.

In 2007, the RDA, subsequently the Successor Agency to the former Redevelopment Agency of Paso Robles, entered into a long-term, zero-interest, forgivable loan agreement with Chet Dotter Senior Housing for the construction of a 40-unit senior housing project within the project area. The balance on June 30, 2024, remains at $1,720,000.

On June 10, 2010, the RDA, subsequently the Successor Agency to the former Redevelopment Agency of Paso Robles, entered into an agreement with South River Road Associates, LP to construct Hidden Creek Village, an 81-unit low-income apartment complex in the amount of $1,000,000. Total outstanding balance as of June 30, 2024, including accrued interest, was $1,399,226.

Attachment 1

B. Tax Allocation Bonds Payable
On September 16, 1996, $3,630,000 Tax Allocation Refunding Bonds were issued by the Redevelopment Agency to refund bonds originally issued in 1991 to repay advances and loans received by the Redevelopment Agency from the City. The outstanding bonds bear a net interest cost of 5.50% and are due in annual installments ranging from $70,000 to $255,000 through January 1, 2022. These bonds were refunded with the 2009 Tax Allocation Bonds.

On October 3, 2000, $4,090,000 Tax Allocation Bonds were issued by the Redevelopment Agency to repay advances and loans received by the Redevelopment Agency from the City and provide funds for the widening of Niblick Bridge from two to four lanes. The outstanding bonds bear a net interest cost of 5.25% and are due in annual installments ranging from $20,000 to $485,000 through January 1, 2028. These bonds are payable from property tax increment revenues.

On August 4, 2009, the Redevelopment Agency of the City issued $9,330,000 of 2009 Series A Tax Allocation Bonds, and $2,785,000 of 2009 Series B with interest rates ranging from 4.75% to 6.50% to refund prior 1996 Tax Allocation Bonds with interest rates ranging from 5.25% to 5.625% and a par value of $2,320,000. The 1996 Tax Allocation Bonds mature annually on July 1 between 2010 and 2021. The 1996 Tax Allocation Bonds were called on September 4, 2009. The 2009 Tax Allocation Bonds were issued at a discount of $(105,005) and, after paying issuance costs of $134,771 and the underwriter’s discount of $94,935, the net proceeds were $8,995,289. A portion of the net proceeds from the issuance of the 2009 Tax Allocation Bonds was used to purchase U.S. Government securities and those securities were deposited in an irrevocable trust with an escrow agent to provide debt service payments until the 1996 Tax Allocation Bonds were called on September 4, 2009. The current refunding met the requirements of an in-substance defeasance. As a result of the refunding, the Redevelopment Agency restructured its total debt service which resulted in a savings on interest costs. As of June 30, 2024, the bond discount was $54,253.

The future minimum payment obligations for the Tax Allocation Bonds payable are as follows:

Fiscal Year Ending
June 30 Principal Interest Total
2025 $ 840,000 0 $ 524,025 0 $ 1,364,025
2026 865,000 0 477,775 0 1,342,775
2027 895,000 428,319 1,323,319
2028 925,000 376,975 1,301,975
2029 410,000 338,744 748,744
2030-2034 2,295,000 0 1,295,366 0 3,590,366
2035-2039 2,795,000 0 461,337 0 3,256,337
Total $ 9,025,000 0 $ 3,902,541 0 $ 12,927,541
NOTE 17 – LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Insurance Authority). The Insurance Authority is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Insurance Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The Insurance Authority began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board of Directors operates through a nine-member Executive Committee.

B. Primary Self-Insurance Programs of the Insurance Authority Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Attachment 1

Primary Liability Program - Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million are distributed based on the outcome of cost allocation within the first and second loss layers.

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

Workers’ Compensation - Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For fiscal year 2023-24 the Insurance Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and employer’s liability losses from $5 million to $10 million are pooled among members.

C. Purchased Insurance
Pollution Legal Liability Insurance – The City participates in the pollution legal liability insurance program which is available through the Insurance Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The Insurance Authority has an aggregate limit of $20 million.

Property Insurance – The City participates in the all-risk property protection program of the Insurance Authority. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the Insurance Authority. City property currently has all-risk property insurance protection in the amount of $208,528,297. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.

Crime Insurance – The City purchases crime insurance coverage in the amount of $5,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Insurance Authority.

Special Event Tenant User Liability Insurance – The City further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is facilitated by the Insurance Authority.

Attachment 1

D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in fiscal year 2023-24.

E. Self-Insurance
The City retains the risk for workers’ compensation losses incurred prior to joining the Insurance Authority. Several member agencies of the now dissolved Central Coast Cities Self-Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance. The participating agencies share a set of common guidelines and annually set aside premiums to pay their individual losses within their self-insured retentions.

Losses are debited and investment income is credited to specific member accounts. The City has not incurred any losses in excess of insurance coverage. Claims liabilities in the governmental funds are generally liquidated by the General Fund.

The last actuarial study to determine the undiscounted outstanding liabilities was completed for the fiscal year ended June 30, 2024. The liability was estimated based on the actuarial study and considered claims asserted and paid, and the time limitation for filing claims. There are no amounts estimated for claims incurred but not reporting because the time limit for filing claims has elapsed. The estimated asset (liability) on June 30, 2024, and the change in those balances are shown below:

Cash, investments, and current assets $ 627,371
Estimated claims liability (23,335)
Unpaid claims asset $ 604,036
Unpaid claims asset on July 1, 2023 $ 564,777
Revenues 27,758
Claim payments and related expenditures (11,135)
Change in fair value 7,994
Change in estimated claims liability 14,642
Unpaid claims asset on June 30, 2024 $ 604,036
NOTE 18 – LITIGATION AND CONTINGENCIES
The City generally follows the practice of recording liabilities resulting from claims and legal actions only when they become fixed or determined in amount. While the City is a defendant in a number of lawsuits arising out of the normal course of business, their outcomes cannot be predicted. In the opinion of the City Attorney, these actions, when finally adjudicated, will not have a material adverse impact on the financial position of the City.

NOTE 19 – SUBSEQUENT EVENTS
A subsequent event is an event that occurs after a reporting period, but before the financial statements for that period have been issued or are available to be issued. There were no subsequent events for the fiscal year ending June 30, 2024.

NOTE 20 – CONSTRUCTION AND OTHER COMMITMENTS
The City had the following significant open purchase orders for construction projects or other commitments as of June 30, 2024:

Vendor Project Description
Obligated
Amount as
of June 30,
2024
Granite Construction Company Creston Road Street and Sewer Rehabilitation Phase 1 $ 6,863,682 GHD, INC. 101/46 West roundabout Project Specifications and Estimates 2,259,320
Attachment 1

Vendor Project Description
Obligated
Amount as
of June 30,
2024
Cannon Corporation Recycled Water Distribution Construction Management $ 1,994,699 Renewell Fleet Service Fire Aerial Ladder Truck 1,845,870 Quaglino Roofing Public Safety Center Roof Repair 1,181,600 Leo Tidwell Excavating Corporation Paso Fiber Connect Network Fiber Installation 1,150,181 Renewell Fleet Service Fire Pierce Engine 1,084,527
Total Outstanding Commitments $16,379,879
Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Note to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2024
NOTE 1 – BUDGETARY BASIS OF ACCOUNTING
Through the budget, the City Council sets the direction of the City, allocates its resources and established its priorities. The annual budget assures the efficient and effective use of the City’s economic resources, and ensures that the City’s highest priority objectives are accomplished.

The City develops and adopts a two-year budget, including a capital improvement plan, in which the City Council has the responsibility for adoption of the City’s budget which serves as the City’s legally adopted expenditure document. Annual operating and capital improvement expenditures are adopted by resolution which constitutes the authorized expenditures for the fiscal year. The second year of the two-year budget is updated and adopted for that year. Budgets are prepared on the modified accrual basis of accounting, consistent with the generally accepted accounting principles (GAAP).

The City Council generally reauthorizes appropriations for continuing projects and activities. The City Council has the legal authority to amend the budget of any fund, at any time during the fiscal year. The budgetary legal level of control (the level on which expenditures may not legally exceed appropriations) is generally at the fund level. Budgeted expenditures may be reallocated within a fund by the City Manager, and within a department by the department director, but any inter-fund transfers or reallocation, must be approved by resolution of the City Council.

Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - General Fund
For the Fiscal Year Ended June 30, 2024
Original Final Actual Variance

REVENUES
Taxes $ 48,569,300 $ 48,569,300 $ 48,964,531 $ 395,231
Licenses and permits 880,000 880,000 1,423,225 543,225
Fines and forfeitures 100,000 100,000 189,950 89,950
Use of money and property 1,660,100 2,443,200 4,248,234 1,805,034 Intergovernmental revenues 293,000 891,765 663,216 (228,549) Charges for current services 2,426,000 2,426,000 3,036,047 610,047 Other revenues 83,600 87,950 210,130 122,180
Total revenues 54,012,000 55,398,215 58,735,333 3,337,118

EXPENDITURES
Current:

GeGeneral government 14,025,800 15,044,465 8,944,912 (6,099,553) PuPublic safety 21,781,400 22,633,565 24,369,656 1,736,091 Hi Highways and streets 5,040,700 5,323,300 5,780,566 457,266 SaSanitation 565,600 565,600 640,730 75,130
CuCulture-recreation 6,425,800 6,719,255 7,095,926 376,671 Ur Urban redevelopment and housing 251,000 306,500 (142,435) (448,935) Ec Economic development and assistance 555,200 714,200 668,530 (45,670) Capital outlay 60,700 1,342,214 529,089 (813,125)
Debt service:

IntInterest 54,900 54,900 54,996 96
Pr Principal 150,600 150,600 150,473 (127)
Total expenditures 48,911,700 52,854,599 48,092,443 (4,762,156) Revenues over expenditures 5,100,300 2,543,616 10,642,890 8,099,274

OTHER FINANCING SOURCES (USES)
Transfers in 1,692,600 1,692,600 919,475 (773,125)
Transfers out (13,454,500) (17,374,082) (10,783,494) 6,590,588 Total other financing sources (uses) (11,761,900) (15,681,482) (9,864,019) 5,817,463 Net change in fund balance $ (6,661,600) $ (13,137,866) 778,871 $ 13,916,737 Fund balance - July 1 24,828,331
Fund balance - June 30 $ 25,607,202
Budget Amounts
See accompanying note to the required supplementary information.

Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - Measure J-20 Supplemental Sales Tax Fund For the Fiscal Year Ended June 30, 2024
Original Final Actual Variance

REVENUES
Taxes $ 13,480,300 $ 13,480,300 $ 13,509,741 $ 29,441
Use of money and property 8,000 8,000 731,176 723,176
Intergovernmental revenues 283,300 283,300 394,030 110,730 Other revenues - 16,500 4,096 (12,404)
Total revenues 13,771,600 13,788,100 14,639,043 850,943

EXPENDITURES
Current:

PuPublic safety 10,344,700 10,373,200 7,145,509 (3,227,691) Hi Highways and streets 160,300 160,300 143,005 (17,295) Capital outlay 30,900 235,999 87,508 (148,491)
Total expenditures 10,535,900 10,769,499 7,376,022 (3,393,477) Revenues over expenditures 3,235,700 3,018,601 7,263,021 4,244,420

OTHER FINANCING SOURCES (USES)
Transfers out (4,037,300) (14,351,820) (1,259,818) 13,092,002 Total other financing sources (uses) (4,037,300) (14,351,820) (1,259,818) 13,092,002 Net change in fund balance $ (801,600) $ (11,333,219) 6,003,203 $ 17,336,422 Fund balance - July 1 14,589,252
Fund balance - June 30 $ 20,592,455
Budget Amounts
See accompanying note to the required supplementary information.

Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - American Rescue Plan Act Fund For the Fiscal Year Ended June 30, 2024
Original Final Actual Variance

REVENUES
Use of money and property $ - $ - $ 233,852 $ 233,852
Intergovernmental revenues - 5,313,949 1,291,956 (4,021,993) Total revenues - 5,313,949 1,525,808 (3,788,141)

EXPENDITURES
Current:

Ur Urban redevelopment and housing - 500,000 388,500 (111,500) Total expenditures - 500,000 388,500 (111,500)
Revenues over expenditures - 4,813,949 1,137,308 (3,676,641)

OTHER FINANCING SOURCES (USES)
Transfers out - (4,886,537) (985,204) 3,901,333
Total other financing sources (uses) - (4,886,537) (985,204) 3,901,333 Net change in fund balance $ - $ (72,588) 152,104 $ 224,692 Fund balance - July 1 -
Fund balance - June 30 $ 152,104
Budget Amounts
See accompanying note to the required supplementary information.

Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - Specific Plans Fund
For the Fiscal Year Ended June 30, 2024
Original Final Actual Variance

REVENUES
Use of money and property $ 5,700 $ 5,700 $ 21,822 $ 16,122 Charges for current services 6,000 6,000 39,055 33,055
Other revenues - - 1,215 1,215
Total revenues 11,700 11,700 62,092 50,392
Net change in fund deficit $ 11,700 $ 11,700 62,092 $ 50,392 Fund deficit - July 1 (1,376,161)
Fund deficit - June 30 $ (1,314,069)
Budget Amounts
See accompanying note to the required supplementary information.

Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in the Net Other Post-Employment Benefit (OPEB) Liability and Related Ratios Last Ten Fiscal Years1
The following table provides the changes in the City's OPEB plan net OPEB liability and related ratios:
2017-18 2018-19 2019-20
Total OPEB Liability
Service cost $ 579,776 $ 594,575 $ 653,372
Interest on total OPEB liability 537,631 566,498 566,388 Changes of assumptions (99,964) 512,103 1,995,683
Differences between expected and actual experience - - (574,832) (458,739) (570,200) (674,080)
Net change in total OPEB liability 558,704 1,102,976 1,966,531 Total OPEB liability - beginning of fiscal year 13,329,764 13,888,468 14,991,444 Total OPEB liability - end of fiscal year [A] $ 13,888,468 $ 14,991,444 $ 16,957,975 Plan Fiduciary Net Position
Contributions - employer $ 130,500 $ 455,146 $ 447,814
Net investment income (loss) 653,066 381,914 216,352
Benefit payments (458,739) (570,200) (674,080)
Net change in plan fiduciary net position 324,827 266,860 (9,914) Total plan fiduciary net position - beginning of fiscal year 6,945,139 7,269,966 7,536,826 Total plan fiduciary net position - end of fiscal year [B] $ 7,269,966 $ 7,536,826 $ 7,526,912 Net OPEB liability - ([A]-[B]) $ 6,618,502 $ 7,454,618 $ 9,431,063

52.35% 50.27% 44.39%
Covered payroll $ 15,438,342 $ 16,553,818 $ 19,263,105
Net OPEB liability as a percentage of covered payroll 42.87% 45.03% 48.96% Notes to Schedule
1 - Fiscal year 2017-18 was the 1st year of implementation, therefore only seven fiscal years are shown.

Benefit payments, including refunds of member
contributions
Plan fiduciary net position as a percentage of the total OPEB liability
See accompanying note to the required supplementary information.

Attachment 1

2020-21 2021-22 2022-23 2023-24
$ 884,773 $ 909,104 $ 631,164 $ 502,442
526,097 495,284 673,127 783,558
818,395 (3,077,668) (2,052,895) (181,983)
(116,693) 324,697 (43,681) 167,773
(616,900) (732,681) (735,316) (790,203)
1,495,672 (2,081,264) (1,527,601) 481,587
16,957,975 18,453,647 16,372,383 14,844,782
$ 18,453,647 $ 16,372,383 $ 14,844,782 $ 15,326,369
$ 447,814 $ 466,846 $ 529,697 $ 491,528
2,436,434 (1,174,648) 1,068,650 1,434,963
(616,900) (732,681) (735,316) (790,203)
2,267,348 (1,440,483) 863,031 1,136,288
7,526,912 9,794,260 8,353,777 9,216,808
$ 9,794,260 $ 8,353,777 $ 9,216,808 $ 10,353,096
$ 8,659,387 $ 8,018,606 $ 5,627,974 $ 4,973,273

53.07% 51.02% 62.09% 67.55%
$ 19,948,309 $ 22,080,455 $ 24,888,251 $ 28,644,838

43.41% 36.32% 22.61% 17.36%
Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18 2018-19
Total Pension Liability
Service cost $ 1,364,965 $ 1,261,727 $ 1,343,291 $ 1,559,000 $ 1,534,064 Interest on total pension liability 4,495,074 4,692,922 4,968,592 5,100,788 5,222,297 Changes of assumptions - (1,109,451) - 4,094,234 (369,228) Differences between expected and actual experience - (622,439) 630,371 (882,446) (1,118,930) (2,490,534) (2,840,331) (3,204,224) (3,277,298) (3,642,194) Net change in total pension liability 3,369,505 1,382,428 3,738,030 6,594,278 1,626,009 Total pension liability - beginning of fiscal year 60,497,088 63,866,593 65,249,021 68,987,051 75,581,329 Total pension liability - end of fiscal year [A] $ 63,866,593 $ 65,249,021 $ 68,987,051 $ 75,581,329 $ 77,207,338 Plan Fiduciary Net Position
Plan to plan resource movement $ - $ - $ - $ - $ (123)
Contributions - employer 1,519,929 1,868,439 2,000,742 3,823,624 2,124,416 Contributions - employee 707,207 628,654 643,082 658,337 770,706 Net investment income (loss) 6,488,346 1,010,263 225,131 4,883,679 4,222,464 Benefit payments (2,490,534) (2,840,331) (3,204,224) (3,277,298) (3,642,194) Administrative expense - (49,448) (26,776) (64,333) (224,056) Other miscellaneous income/(expense)1 - - - - -
Net change in plan fiduciary net position 6,224,948 617,577 (362,045) 6,024,009 3,251,213 Total plan fiduciary net position - beginning of fiscal year 37,093,083 43,318,031 43,935,608 43,573,563 49,597,572 Total plan fiduciary net position - end of fiscal year [B] $ 43,318,031 $ 43,935,608 $ 43,573,563 $ 49,597,572 $ 52,848,785 Net pension liability - end of fiscal year ([A]-[B]) $ 20,548,562 $ 21,313,413 $ 25,413,488 $ 25,983,757 $ 24,358,553

67.83% 67.34% 63.16% 65.62% 68.45%
Covered payroll $ 7,695,579 $ 7,659,829 $ 8,396,093 $ 8,780,225 $ 9,316,302 Net pension liability as a percentage of covered payroll 267.02% 278.25% 302.68% 295.93% 261.46% Summary of Changes of Benefits or Assumptions
The following table provides the changes in the miscellaneous plan's net pension liability and related ratios - agent multiple-employer defined benefit pension plan:

Benefit payments, including refunds of employee
contributions
Plan fiduciary net position as a percentage of the total pension liability
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred after the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: In 2023, the accounting discount rate was reduced from 7.15% to 6.90%. 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, combined with risk estimates, and are used to project compound (geometric) returns over the long-term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.

See accompanying note to the required supplementary information.

Attachment 1

2019-20 2020-21 2021-22 2022-23 2023-24
$ 1,581,663 $ 1,609,566 $ 1,606,255 $ 1,829,087 $ 1,998,150 5,548,346 5,765,245 6,004,538 6,161,948 6,462,524
- - - 2,696,110 -
1,547,644 (40,299) 337,397 (561,548) 1,054,411
(3,893,155) (4,247,061) (4,480,541) (4,584,918) (5,180,804) 4,784,498 3,087,451 3,467,649 5,540,679 4,334,281
77,207,338 81,991,836 85,079,287 88,546,936 94,087,615
$ 81,991,836 $ 85,079,287 $ 88,546,936 $ 94,087,615 $ 98,421,896 $ - $ - $ - $ - $ -
3,489,963 2,483,632 2,519,880 2,716,313 3,107,204
883,924 972,201 1,005,499 1,120,973 1,228,259
3,485,150 2,853,716 13,251,050 (5,394,575) 4,020,713
(3,893,155) (4,247,061) (4,480,541) (4,584,918) (5,180,804) (37,714) (80,042) (58,697) (44,227) (47,658)
123 - - - -
3,928,291 1,982,446 12,237,191 (6,186,434) 3,127,714
52,848,785 56,777,076 58,759,522 70,996,713 64,810,279
$ 56,777,076 $ 58,759,522 $ 70,996,713 $ 64,810,279 $ 67,937,993 $ 25,214,760 $ 26,319,765 $ 17,550,223 $ 29,277,336 $ 30,483,903

69.25% 69.06% 80.18% 68.88% 69.03%
$ 9,678,132 $ 9,851,522 $ 10,014,148 $ 11,020,579 $ 13,117,161 260.53% 267.16% 175.25% 265.66% 232.40%
Notes to Schedule
1 - During fiscal year 2017-18, as a result of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions , CalPERS reported its proportionate share of activity related to post-employment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB Statement No. 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and, during fiscal year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions.

Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Pension Contributions - Agent Multiple-Employer Defined Benefit Pension Plan Last Ten Fiscal Years
The following table provides the contributions to the miscellaneous plan - agent multiple-employer defined benefit pension plan:
2014-15 2015-16 2016-17 2017-18 2018-19
Actuarially determined contribution $ 1,765,370 $ 1,931,256 $ 2,527,005 $ 2,370,405 $ 2,299,277 (1,868,439) (1,998,114) (4,150,823) (2,370,405) (3,531,703) Contribution deficiency (excess) $ (103,069) $ (66,858) $ (1,623,818) $ - $ (1,232,426) Covered payroll $ 7,659,829 $ 8,396,093 $ 8,780,225 $ 9,316,302 $ 9,678,132 Contributions as a percentage of covered payroll 24.39% 23.80% 47.27% 25.44% 36.49% Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2023 Funding Valuation Report.

Asset Valuation Method
Inflation 2.630%
Salary Increases Varies by entry age and service
Payroll Growth 2.880%
Investment Rate of Return
Retirement Age
Mortality
Contribution in relation to the actuarially determined
contribution
Fair Value of Assets. For details, see June 30, 2023 Funding Valuation The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2023 The probabilities of mortality are based on the 2017 CalPERS' Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

6.90% Net of Pension Plan Investments and Administrative Expenses; The probabilities of Retirement are based on the 2017 CalPERS' Experience Study for the period from 1997 to 2015.

See accompanying note to the required supplementary information.

Attachment 1

2019-20 2020-21 2021-22 2022-23 2023-24
$ 2,483,632 $ 2,519,880 $ 2,716,313 $ 3,107,204 $ 3,300,108 (2,483,632) (2,519,880) (2,716,313) (3,107,204) (3,300,108) $ - $ - $ - $ - $ -
$ 9,851,522 $ 10,014,148 $ 11,020,579 $ 13,117,161 $ 15,303,306

25.21% 25.16% 24.65% 23.69% 21.56%
Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Plan's Proportionate Share of Net Pension Liability Last Ten Fiscal Years
The following table provides the City's proportionate share of net pension liability of the safety plan - cost-sharing defined benefit pension plan:
2014-15 2015-16 2016-17 2017-18 2018-19
Proportion of the net pension liability 0.17637% 0.17196% 0.16700% 0.15545% 0.15490% Proportionate share of the net pension liability $ 10,974,469 $ 11,802,834 $ 14,446,625 $ 15,416,576 $ 14,949,927 Covered payroll $ 5,103,941 $ 4,965,806 $ 4,996,867 $ 5,232,842 $ 5,250,491 215.02% 237.68% 289.11% 294.61% 284.73%
Plan's total pension liability (in billions) $ 30.83 $ 31.77 $ 33.36 $ 37.16 $ 38.00 Plan's fiduciary net position (in billions) $ 24.61 $ 24.91 $ 24.71 $ 27.24 $ 28.35

79.82% 78.41% 74.07% 73.30% 74.61%
Summary of Changes of Benefits or Assumptions
Proportionate share of the net pension liability as a
percentage of covered payroll
Plan fiduciary net position as a percentage of the total pension liability
Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes). Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employerspecific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2020 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Changes of Assumptions: In 2023, the accounting discount rate was reduced from 7.15% to 6.90%. 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, combined with risk estimates, and are used to project compound (geometric) returns over the long-term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

See accompanying note to the required supplementary information.

Attachment 1

2019-20 2020-21 2021-22 2022-23 2023-24

0.15260% 0.14840% 0.08960% 0.18910% 0.17050%
$ 16,081,854 $ 16,434,399 $ 7,383,530 $ 18,157,549 $ 21,704,399 $ 5,842,756 $ 5,835,684 $ 7,370,100 $ 8,270,629 $ 8,001,693 275.24% 281.62% 100.18% 219.54% 271.25%
$ 40.90 $ 43.18 $ 45.65 $ 48.87 $ 51.77
$ 30.36 $ 32.11 $ 37.41 $ 39.27 $ 39.04

74.23% 74.36% 81.95% 80.36% 75.41%
Attachment 1

City of El Paso de Robles

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Pension Contributions - Cost-Sharing Defined Benefit Pension Plan Last Ten Fiscal Years
The following table provides the contributions to the safety plan - cost-sharing defined benefit pension plan:
2014-15 2015-16 2016-17 2017-18 2018-19
$ 1,540,704 $ 1,664,994 $ 1,742,385 $ 1,783,390 $ 1,723,623 (1,700,202) (1,629,321) (2,618,567) (1,783,390) (2,491,197) Contribution deficiency (excess) $ (159,498) $ 35,673 $ (876,182) $ - $ (767,574) Covered payroll $ 4,965,806 $ 4,996,867 $ 5,232,842 $ 5,250,491 $ 5,842,756

34.24% 32.61% 50.04% 33.97% 42.64%
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB Statement No. 68 Actuarial Assumptions:

Discount rate 6.90%
Inflation 2.50%
Salary increases Varies by entry age and service
Mortality table2 Derived using CalPERS membership data for all funds Post retirement benefit increase
Notes to Schedule
Contributions as a percentage of covered payroll
The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on the following actuarial methods and assumptions:

The lesser of contract cost-of-living (COLA) or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter 1 - The mortality table used was developed based on CalPERS'-specific data. The probabilities of mortality are based on the 2017 CalPERS' Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS' Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS' website.

Contractually required contribution (actuarially
determined)
Contribution in relation to the actuarially determined
contributions
See accompanying note to the required supplementary information.

Attachment 1

2019-20 2020-21 2021-22 2022-23 2023-24
$ 1,986,673 $ 2,174,025 $ 2,268,023 $ 2,803,778 $ 2,823,911 (1,986,673) (2,174,025) (2,268,023) (2,803,778) (2,823,911) $ - $ - $ - $ - $ -
$ 5,835,684 $ 7,370,100 $ 8,270,629 $ 8,001,693 $ 6,016,041

34.04% 29.50% 27.42% 35.04% 46.94%
Attachment 1

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Special revenue funds are used to account for revenues that are restricted by law or administrative actions to expenditures for specified purposes. Nonmajor special revenue funds used by the City are listed below:

Citizens Option Public Safety Fund - to account for State Assembly Bill (AB) 3229 funds. Funds must be held in an interest bearing account until utilized to provide the City's matching share of Federal Citizens Option Public Safety grant.

Street Fund - to account for receipts and expenditures of money apportioned under Streets and Highway Code Sections 2105, 2106, 2107, and 2107.5 of the State of California.

Transportation Development Act Non-Transit Fund - to account for the receipt and expenditure of the 1/4% sales tax levied statewide for local transportation purposes. In 1971, the 6% sales tax levy was extended to gasoline purchases and is divided into two categories; Article 8a, which is used for streets and roads, and Article 8c, which is restricted for transit purposes.

Road Maintenance and Rehabilitation Account Fund - to account for the receipt and expenditure of the Senate Bill (SB) 1 funds and is an additional gas tax to be used toward local roads, bridges and other street-related repair and maintenance.

Voluntary Certified Access Specialist Program Fund – The Certified Access Specialist program (CASp) was created by Senate Bill 262 and is designed to meet the public’s need for experienced, trained, and tested individuals who can inspect buildings and sites for compliance with applicable state and federal construction-related accessibility standards.

Community Development Block Grant Fund - to account for Federal grant funds received from the Department of Housing and Urban Development for the rehabilitation of low- and moderate-income housing and the elimination of blight in the City.

Cal Home Loan Program Fund – to account for the funds disbursed to low- and moderate-income households for firsttime home buying and/or home improvements.

Landscape and Lighting District Fund – to account for the City’s benefit assessment district which was established to finance the ongoing maintenance and operational cost of street lighting and landscaped medians, parkways, etc.

Public, Educational, and Governmental Fund – to account for the public, educational and governmental (PEG) funds received and expended for the purpose of video production and programming of City government.

Landfill Closure, Post-Closure, and Corrective Action Fund - State Financial Assurance Mechanism regulations require landfill operators to set aside funds, or provide alternative funding mechanisms, to fund the closure, post-closure, and corrective action maintenance of landfills. The funding must be completed prior to the final date of closure.

Attachment 1

NONMAJOR GOVERNMENTAL FUNDS

CAPITAL PROJECTS FUNDS
Capital project funds are restricted, committed, or assigned funds to account for capital outlay including the acquisition or construction of capital facilities and other capital assets. Nonmajor capital projects funds used by the City are listed below:

Transportation Facilities Fund - This development impact fee fund is used to assist in the funding of construction and improvements of the City’s transportation system, including bike and pedestrian path and storm drains, sufficient to accommodate future traffic demand generated by new development.

Public Safety Facilities Fund - This development impact fee fund is used to assist in funding the construction and improvements of new law enforcement and fire service facilities and equipment used to protect life and property.

General Government Facilities Fund – This development impact fee fund is used to assist in the construction and development of facilities used by the City to provide basic governmental services such as public meetings and City Hall.

Parks and Recreation Facilities Fund - This development impact fee fund is used to assist in the construction and development of public facilities which improve neighborhood and community parklands as well as an aquatics center needed to serve new development.

Library Facilities Fund - This development impact fee fund is used to assist in funding the construction and improvements of the library facility sufficient to accommodate future demand generated by new development.

Airport Road PSR Fund - to account for expenditures associated with the Project Study Report (PSR) for the intersection of Highway 46 East and Airport Road.

DEBT SERVICE FUND
Debt service funds are restricted funds that are to be used towards accumulating resources in anticipation of debt service payments, to fulfill either legal or contractual obligations. Nonmajor debt service funds used by the City are listed below:

Measure D General Obligation Bond Fund – This fund accounts for long-term debt service transactions relating to a variety of infrastructure projects funded by the voter approved Measure D General Obligation Bonds.

Attachment 1

City of El Paso de Robles

COMBINING BALANCE SHEET
Nonmajor Governmental Funds
June 30, 2024
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 117 200 206 209 Assets:

Cash and investments $ 727,999 $ 1,751,149 $ 421,839 $ 2,339,564 Accounts receivable - 76,242 - 141,048
Interest receivable 4,346 10,640 2,561 13,869
Loans receivable - - - -
Total assets 732,345 1,838,031 424,400 2,494,481
Deferred outflows of resources:

Deferred interest expense - - - -
Total deferred outflows of resources - - - -
Total assets and deferred outflows of resources $ 732,345 $ 1,838,031 $ 424,400 $ 2,494,481 Liabilities:

Accounts payable $ - $ 4,581 $ - $ -
Accrued payroll expenses - - - -
Interest payable - - - -
Advances payable - - - -
Total liabilities - 4,581 - -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund balances (deficits):

Restricted 732,345 1,833,450 424,400 2,494,481
Unassigned - - - -
Total fund balances (deficits) 732,345 1,833,450 424,400 2,494,481 $ 732,345 $ 1,838,031 $ 424,400 $ 2,494,481
Road Maintenance
and Rehabilitation
Account
Special Revenue Funds

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND

FUND BALANCES (DEFICITS)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Citizens Option
Public Safety Street
Transportation
Development Act -
Non-Transit
Attachment 1

210 227 233 308 409 611
$ 121,597 $ 30,365 $ 451,642 $ 1,807,577 $ 410,114 $ 4,941,593 - 95,848 - 30,872 13,618 -
722 153,279 69,603 10,741 2,481 30,100
- 737,690 103,900 - - -
122,319 1,017,182 625,145 1,849,190 426,213 4,971,693
- - - - - -
- - - - - -
$ 122,319 $ 1,017,182 $ 625,145 $ 1,849,190 $ 426,213 $ 4,971,693 $ 1,070 $ 202,008 $ - $ 73,173 $ - $ 12,634
- - - 3,836 - -
- - - - - -
- - - - - -
1,070 202,008 - 77,009 - 12,634
- 890,690 170,740 - - -
- 890,690 170,740 - - -
121,249 - 454,405 1,772,181 426,213 4,959,059
- (75,516) - - - -
121,249 (75,516) 454,405 1,772,181 426,213 4,959,059
$ 122,319 $ 1,017,182 $ 625,145 $ 1,849,190 $ 426,213 $ 4,971,693 Community
Development
Block Grant
Landscape and
Lighting District
Landfill Closure,
Post-closure, and
Corrective Action
Voluntary Certified
Access Specialist
Program
Cal Home Loan
Program
Public,
Educational, and
Governmental
Special Revenue Funds
Attachment 1

City of El Paso de Robles

COMBINING BALANCE SHEET
Nonmajor Governmental Funds
June 30, 2024

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Assets:

Cash and investments $ 3,286,774 $ 742,499 $ 9,634,624 $ 5,042,168 Accounts receivable - - - -
Interest receivable 217,447 28,595 178,080 140,580
Loans receivable 1,147,762 79,616 475,381 464,778
Total assets 4,651,983 850,710 10,288,085 5,647,526
Deferred outflows of resources:

Deferred interest expense - - - -
Total deferred outflows of resources - - - -
Total assets and deferred outflows of resources $ 4,651,983 $ 850,710 $ 10,288,085 $ 5,647,526 Liabilities:

Accounts payable $ 970 $ - $ - $ -
Accrued payroll expenses - - - -
Interest payable - - - -
Advances payable - - - -
Total liabilities 970 - - -
Deferred inflows of resources:

Unavailable revenue 1,345,180 103,704 594,626 574,537
Total deferred inflows of resources 1,345,180 103,704 594,626 574,537 Fund balances (deficits):

Restricted 3,305,833 747,006 9,693,459 5,072,989
Unassigned - - - -
Total fund balances (deficits) 3,305,833 747,006 9,693,459 5,072,989 $ 4,651,983 $ 850,710 $ 10,288,085 $ 5,647,526
Transportation
Facilities
Public Safety
Facilities
General
Government
Facilities
Parks and
Recreation
Facilities

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND

FUND BALANCES (DEFICITS)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Capital Projects Funds
Attachment 1

223 235 506
$ 2,224,663 $ - $ 2,776,941 $ 36,711,108
- - 71,041 428,669
52,048 - 15,352 930,444
153,362 - - 3,162,489
2,430,073 - 2,863,334 41,232,710
- 88,363 - 88,363
- 88,363 - 88,363
$ 2,430,073 $ 88,363 $ 2,863,334 $ 41,321,073
$ - $ - $ - $ 294,436
- - - 3,836
- 88,363 - 88,363
- 153,222 - 153,222
- 241,585 - 539,857
191,834 - - 3,871,311
191,834 - - 3,871,311
2,238,239 - 2,863,334 37,138,643
- (153,222) - (228,738)
2,238,239 (153,222) 2,863,334 36,909,905
$ 2,430,073 $ 88,363 $ 2,863,334 $ 41,321,073
Total Nonmajor
Governmental
Funds
Debt Service Fund
Airport Road PSR
Capital Projects Funds
Library Facilities
Measure D G.O.

Bond
Attachment 1

City of El Paso de Robles

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
REVENUES 117 200 206 209
Taxes $ - $ 884,338 $ - $ 809,329
Use of money and property 31,097 74,394 18,482 96,689
Intergovernmental revenues 101,000 - 38,453 -
Charges for current services - - - -
Total revenues 132,097 958,732 56,935 906,018

EXPENDITURES
Current:

Ge General government - - - -
Hi Highways and streets - 630,411 - -
SaSanitation - - - -
He Health and welfare - - - -
CuCulture-recreation - - - -
Capital outlay - 33,892 - -
Debt service:

IntInterest - - - -
Pr Principal - - - -
Ag Agent fees - - - -
Total expenditures - 664,303 - -
132,097 294,429 56,935 906,018

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances (deficits) 132,097 294,429 56,935 906,018 Fund balances (deficits) - July 1 600,248 1,539,021 367,465 1,588,463 Fund balances (deficits) - June 30 $ 732,345 $ 1,833,450 $ 424,400 $ 2,494,481 Special Revenue Funds
Citizens Option
Public Safety Street
Transportation
Development Act -
Non-Transit
Road Maintenance
and Rehabilitation
Account
Excess (deficiency) of revenues over (under)
expenditures
Attachment 1

210 227 233 308 409 611
$ - $ - $ - $ - $ - $ -
5,125 4,165 20,170 68,217 17,800 219,133
- 15,508 - - - -
15,824 - - 2,246,225 55,472 -
20,949 19,673 20,170 2,314,442 73,272 219,133
- - - - - -
- - - - - -
- - - - - 103,975
- 15,512 - - - -
- - - 2,058,257 - -
- 206,120 - - - -
- - - - - -
- - - - - -
- - - - - -
- 221,632 - 2,058,257 - 103,975
20,949 (201,959) 20,170 256,185 73,272 115,158
- - - 1,051,600 - 180,000
- - - - - -
- - - 1,051,600 - 180,000
20,949 (201,959) 20,170 1,307,785 73,272 295,158
100,300 126,443 434,235 464,396 352,941 4,663,901
$ 121,249 $ (75,516) $ 454,405 $ 1,772,181 $ 426,213 $ 4,959,059 Special Revenue Funds
Landfill Closure,
Post-closure, and
Corrective Action
Voluntary Certified
Access Specialist
Program
Community
Development
Block Grant
Cal Home Loan
Program
Landscape and
Lighting District
Public,
Educational, and
Governmental
Attachment 1

City of El Paso de Robles

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024

REVENUES
Taxes $ - $ - $ - $ -
Use of money and property 188,539 34,448 430,890 233,534 Intergovernmental revenues - - - -
Charges for current services 501,563 177,396 442,019 37,019 Total revenues 690,102 211,844 872,909 270,553

EXPENDITURES
Current:

Ge General government - - - -
Hi Highways and streets 16,150 - - -
SaSanitation - - - -
He Health and welfare - - - -
CuCulture-recreation - - - -
Capital outlay - 10,958 - -
Debt service: -
IntInterest - - - -
Pr Principal - - - -
Ag Agent fees - - - -
Total expenditures 16,150 10,958 - -
673,952 200,886 872,909 270,553

OTHER FINANCING SOURCES (USES)
Transfers in - - 8,089 -
Transfers out (166,370) - - (26,181)
Total other financing sources (uses) (166,370) - 8,089 (26,181) Net change in fund balances (deficits) 507,582 200,886 880,998 244,372 Fund balances (deficits) - July 1 2,798,251 546,120 8,812,461 4,828,617 Fund balances (deficits) - June 30 $ 3,305,833 $ 747,006 $ 9,693,459 $ 5,072,989 Capital Projects Funds
Excess (deficiency) of revenues over (under)
expenditures
Transportation
Facilities
Public Safety
Facilities
General
Government
Facilities
Parks and
Recreation
Facilities
Attachment 1

223 235 506
$ - $ - $ 2,678,434 $ 4,372,101
99,287 - 84,410 1,626,380
- - - 154,961
54,513 - - 3,530,031
153,800 - 2,762,844 9,683,473
- - 2,250 2,250
- - - 646,561
- - - 103,975
- - - 15,512
- - - 2,058,257
- - - 250,970
- - 715,391 715,391
- - 1,536,109 1,536,109
- - 1,780 1,780
- - 2,255,530 5,330,805
153,800 - 507,314 4,352,668
- - - 1,239,689
- - - (192,551)
- - - 1,047,138
153,800 - 507,314 5,399,806
2,084,439 (153,222) 2,356,020 31,510,099
$ 2,238,239 $ (153,222) $ 2,863,334 $ 36,909,905
Capital Projects Funds Debt Service Fund
Airport Road PSR
Measure D G.O.

Bond
Total
Governmental
Library Facilities Funds
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
Budget Actual Variance

REVENUES
Intergovernmental revenues $ 28,363,298 $ 5,122,722 $ (23,240,576) Other revenues 3,509,338 584,838 (2,924,500)
Total revenues 31,872,636 5,707,560 (26,165,076)

EXPENDITURES
Current:

Ge General government 918,498 245,557 (672,941)
Hi Highways and streets 3,886,536 855,452 (3,031,084)
CuCulture-recreation 323,663 328,593 4,930
Capital outlay 107,670,151 9,351,780 (98,318,371)
Total expenditures 112,798,848 10,781,382 (102,017,466) Revenues (under) expenditures (80,926,212) (5,073,822) 75,852,390

OTHER FINANCING SOURCES (USES)
Transfers in 59,993,570 11,989,467 (48,004,103)
Total other financing sources (uses) 59,993,570 11,989,467 (48,004,103) Net change in fund balance $ (20,932,642) 6,915,645 $ 27,848,287 Fund balance - July 1 23,019,732
Fund balance - June 30 $ 29,935,377
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Citizens Option Public Safety Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 60,900.00 $ 31,097.00 $ (29,803.00) Intergovernmental revenues 160,000 101,000 (59,000)
Total revenues 220,900 132,097 (88,803)
Net change in fund balance $ 220,900 132,097 $ (88,803) Fund balance - July 1 600,248
Fund balance - June 30 $ 732,345
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Street Fund Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Taxes $ 980,000 $ 884,338 $ (95,662)
Use of money and property 5,000 74,394 69,394
Total revenues 985,000 958,732 (26,268)

EXPENDITURES
Current:

Hi Highways and streets 1,407,933 630,411 (777,522)
Capital outlay - 33,892 33,892
Total expenditures 1,407,933 664,303 (743,630)
Revenues over expenditures (422,933) 294,429 717,362

OTHER FINANCING SOURCES (USES)
Transfers out (500,000) - 500,000
Total other financing sources (uses) (500,000) - 500,000 Net change in fund balance $ (922,933) 294,429 $ 1,217,362 Fund balance - July 1 1,539,021
Fund balance - June 30 $ 1,833,450
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Transportation Development Act - Non-Transit Special Revenue Fund For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 11,400 $ 18,482 $ 7,082
Intergovernmental revenues 30,000 38,453 8,453
Total revenues 41,400 56,935 15,535
Net change in fund balance $ 41,400 56,935 $ 15,535
Fund balance - July 1 367,465
Fund balance - June 30 $ 424,400
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Road Maintenance and Rehabilitation Account Special Revenue Fund For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Taxes $ 770,000 $ 809,329 $ 39,329
Use of money and property 5,000 96,689 91,689
Total revenues 775,000 906,018 131,018
Net change in fund balance $ 775,000 906,018 $ 131,018
Fund balance - July 1 1,588,463
Fund balance - June 30 $ 2,494,481
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Voluntary Certified Access Specialist Program Special Revenue Fund For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 2,900 $ 5,125 $ 2,225
Charges for current services 14,000 15,824 1,824
Total revenues 16,900 20,949 4,049
Net change in fund balance $ 16,900 20,949 $ 4,049
Fund balance - July 1 100,300
Fund balance - June 30 $ 121,249
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Community Development Block Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ - $ 4,165 $ 4,165
Intergovernmental revenues 228,531 15,508 (213,023)
Total revenues 228,531 19,673 (208,858)

EXPENDITURES
Current:

He Health and welfare 2,080 15,512 13,432
Capital outlay 245,705 206,120 (39,585)
Total expenditures 247,785 221,632 (26,153)
Net change in fund balance (deficit) $ (19,254) (201,959) $ (182,705) Fund balance - July 1 126,443
Fund balance (deficit) - June 30 $ (75,516)
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Cal Home Loan Program Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 7,600 $ 20,170 $ 12,570
Total revenues 7,600 20,170 12,570
Net change in fund balance $ 7,600 20,170 $ 12,570
Fund balance - July 1 434,235
Fund balance - June 30 $ 454,405
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Landscape and Lighting District Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 10,000 $ 68,217 $ 58,217
Charges for current services 2,230,700 2,246,225 15,525 Total revenues 2,240,700 2,314,442 73,742

EXPENDITURES
Current:

CuCulture-recreation 2,243,050 2,058,257 (184,793)
Total expenditures 2,243,050 2,058,257 (184,793)
Revenues over expenditures (2,350) 256,185 258,535

OTHER FINANCING SOURCES (USES)
Transfers in 1,051,600 1,051,600 -
Total other financing sources (uses) 1,051,600 1,051,600 - Net change in fund balance $ 1,049,250 1,307,785 $ 258,535 Fund balance - July 1 464,396
Fund balance - June 30 $ 1,772,181
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Public, Educational, and Governmental Special Revenue Fund For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 11,000 $ 17,800 $ 6,800
Charges for current services 61,500 55,472 (6,028)
Total revenues 72,500 73,272 772
Net change in fund balance $ 72,500 73,272 $ 772
Fund balance - July 1 352,941
Fund balance - June 30 $ 426,213
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Landfill Closure, Post-Closure, and Corrective Action Special Revenue Fund For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 144,800 $ 219,133 $ 74,333
Total revenues 144,800 219,133 74,333

EXPENDITURES
Current:

SaSanitation 184,443 103,975 (80,468)
Total expenditures 184,443 103,975 (80,468)
Revenues over expenditures (39,643) 115,158 154,801

OTHER FINANCING SOURCES (USES)
Transfers in 180,000 180,000 -
Total other financing sources (use) 180,000 180,000 -
Net change in fund balance $ 140,357 295,158 $ 154,801
Fund balance - July 1 4,663,901
Fund balance - June 30 $ 4,959,059
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Transportation Facilities Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 80,000 $ 188,539 $ 108,539
Charges for current services 703,500 501,563 (201,937)
Total revenues 783,500 690,102 (93,398)

EXPENDITURES
Current:

Hi Highways and streets - 16,150 16,150
Total expenditures - 16,150 16,150
Revenues over expenditures 783,500 673,952 (109,548)

OTHER FINANCING SOURCES (USES)
Transfers out (9,922,408) (166,370) 9,756,038
Total other financing sources (uses) (9,922,408) (166,370) 9,756,038 Net change in fund balance $ (9,138,908) 507,582 $ 9,646,490 Fund balance - July 1 2,798,251
Fund balance - June 30 $ 3,305,833
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Public Safety Facilities Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 1,700 $ 34,448 $ 32,748
Charges for current services 124,000 177,396 53,396
Total revenues 125,700 211,844 86,144

EXPENDITURES
Capital outlay 134,303 10,958 (123,345)
Total expenditures 134,303 10,958 (123,345)
Net change in fund balances $ (8,603) 200,886 $ 209,489 Fund balance - July 1 546,120
Fund balance - June 30 $ 747,006
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL General Government Facilities Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 168,000 $ 430,890 $ 262,890 Charges for current services 250,000 442,019 192,019
Total revenues 418,000 872,909 454,909

OTHER FINANCING SOURCES (USES)
Transfers in - 8,089 8,089
Transfers out (4,989,400) - 4,989,400
Total other financing sources (uses) (4,989,400) 8,089 4,997,489 Net change in fund balance $ (4,571,400) 880,998 $ 5,452,398 Fund balance - July 1 8,812,461
Fund balance - June 30 $ 9,693,459
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Parks and Recreation Facilities Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 68,700 $ 233,534 $ 164,834
Charges for current services 100,000 37,019 (62,981)
Total revenues 168,700 270,553 101,853

OTHER FINANCING SOURCES (USES)
Transfers out (374,523) (26,181) 348,342
Total other financing sources (uses) (374,523) (26,181) 348,342 Net change in fund balance $ (205,823) 244,372 $ 450,195 Fund balance - July 1 4,828,617
Fund balance - June 30 $ 5,072,989
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Library Facilities Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Use of money and property $ 34,700 $ 99,287 $ 64,587
Charges for current services 40,000 54,513 14,513
Total revenues 74,700 153,800 79,100
Net change in fund balance $ 74,700 153,800 $ 79,100
Fund balance - July 1 2,084,439
Fund balance - June 30 $ 2,238,239
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Airport Road PSR Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Taxes $ - $ - $ -
Total revenues - - -
Net change in fund deficit $ - - $ -
Fund deficit - July 1 (153,222)
Fund deficit - June 30 $ (153,222)
Attachment 1

City of El Paso de Robles

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL Measure D G.O. Bond Debt Service Fund
For the Fiscal Year Ended June 30, 2024
Final Budget Actual Variance

REVENUES
Taxes $ 2,250,000 $ 2,678,434 $ 428,434
Use of money and property 5,000 84,410 79,410
Total revenues 2,255,000 2,762,844 507,844

EXPENDITURES
Current:

Ge General government 3,000 2,250 (750)
Debt service: - -
IntInterest 715,400 715,391 (9)
Pr Principal 1,536,100 1,536,109 9
Ag Agent fees 2,000 1,780 (220)
Total expenditures 2,256,500 2,255,530 (970)
Net change in fund balance $ (1,500) 507,314 $ 508,814
Fund balance - July 1 2,356,020
Fund balance - June 30 $ 2,863,334
Attachment 1

INTERNAL SERVICE FUNDS
An internal service fund is used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government. The City uses Internal Service Funds to allocate fleet maintenance and replacement, information technology maintenance and replacement, and risk management functions. Like Enterprise Funds, Internal Service Funds are generally reported as proprietary funds. Incorporating internal services funds allows for better transparency as to what the total cost of IT, fleet maintenance, and risk management functions are, as well as how much of each fund is contributing towards these services.

Information Technology Internal Service Fund
This fund is used to account for the operation of the City's Information Technology department and maintenance and replacement of information technology equipment.

Fleet and Equipment Internal Service Fund
This fund is used to account for the operation of the City's Fleet Maintenance Department and maintenance and replacement of the City’s vehicles and equipment.

Risk Management Internal Services Fund
This fund is used to account for the operation of the City’s Risk Management Department.

Attachment 1

City of El Paso de Robles

COMBINING STATEMENT OF NET POSITION
Internal Service Funds
June 30, 2024
ASSETS 112 125 128
Current assets:

Ca Cash and investments $ 1,634,765 $ 8,661,172 $ 92,819 $ 10,388,756 Ac Accounts receivable - 123,578 22,606 146,184
Int Interest receivable 8,984 53,483 591 63,058
Pr Prepaid items 27,055 - 604,036 631,091
0 Total current assets 1,670,804 8,838,233 720,052 11,229,089 0 Noncurrent assets:

Capital assets:

NoNoNondepreciable capital assets 23,671 636,569 - 660,240 Ne Net depreciable capital assets 1,663,378 6,568,409 - 8,231,787 Ne Ne Net intangible right-to-use assets 47,051 - - 47,051 0 Total noncurrent assets 1,734,100 7,204,978 - 8,939,078 Total assets 3,404,904 16,043,211 720,052 20,168,167

DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits (OPEB) 4,341 2,938 - 7,279 Deferred pensions outflows 284,932 129,197 468 414,597
Total deferred outflows of resources 289,273 132,135 468 421,876

LIABILITIES
Current liabilities:

Ac Accounts payable 13,943 113,331 - 127,274
Ac Accrued payroll expenses 16,124 8,940 1,734 26,798
Int Interest payable - 2,406 - 2,406
Co Compensated absences due within one year 16,013 10,099 - 26,112 Su Subscriptions due within one year 24,648 - - 24,648
De Debt due within one year - 84,178 - 84,178
Total current liabilities 70,728 218,954 1,734 291,416
Noncurrent liabilities:

Co Compensated absences 48,041 30,296 - 78,337
Su Subscription liability 17,753 - - 17,753
Ne Net OPEB liability 83,054 56,198 8,952 148,204
Ne Net pension liability 1,021,388 463,129 - 1,484,517
De Debt due after one year - - - -
Total noncurrent liabilities 1,170,236 549,623 8,952 1,728,811 Total liabilities 1,240,964 768,577 10,686 2,020,227

DEFERRED INFLOWS OF RESOURCES
Deferred OPEB 67,403 45,608 7,265 120,276
Deferred pensions inflows 9,134 4,141 - 13,275
Total deferred inflows of resources 76,537 49,749 7,265 133,551

NET POSITION
Net investment in capital assets 1,691,699 7,120,800 - 8,812,499 Unrestricted 684,977 8,236,220 702,569 9,623,766
Total net position $ 2,376,676 $ 15,357,020 $ 702,569 $ 18,436,265 Total
Fleet and
Equipment Risk Management
Information
Technology
Attachment 1

City of El Paso de Robles

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Internal Service Funds
For the Fiscal Year Ended June 30, 2024

OPERATING REVENUES
Charges for current services $ 3,011,050 $ 5,570,265 $ 2,086,700 $ 10,668,015 Other revenues - - 24,184 24,184
Total operating revenues 3,011,050 5,570,265 2,110,884 10,692,199

OPERATING EXPENSES
Salaries and benefits 647,242 472,744 94,862 1,214,848
Maintenance and operations 1,072,622 756,405 1,949,019 3,778,046 Depreciation and amortization 364,356 910,480 - 1,274,836 Total operating expenses 2,084,220 2,139,629 2,043,881 6,267,730 Operating income 926,830 3,430,636 67,003 4,424,469

NONOPERATING REVENUES (EXPENSES)
Investment income (loss) 71,785 421,818 5,526 499,129
Gain/(loss) on disposal of capital asset - 179,178 - 179,178 Interest expense (2,153) (4,268) - (6,421)
69,632 596,728 5,526 671,886
Change in net position 996,462 4,027,364 72,529 5,096,355 Net position - July 1 1,380,214 11,329,656 630,040 13,339,910 Net position - June 30 $ 2,376,676 $ 15,357,020 $ 702,569 $ 18,436,265 Total nonoperating revenues (expenses)
Risk Management Total
Fleet and
Equipment
Information
Technology
Attachment 1

City of El Paso de Robles

COMBINING STATEMENT OF CASH FLOWS
Internal Service Funds
For the Fiscal Year Ended June 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and other agencies $ 3,011,050 $ 5,475,417 $ 2,168,494 $ 10,654,961 Payments to employees (818,848) (460,372) (95,172) (1,374,392) Payments to suppliers (1,196,885) (876,897) (2,032,743) (4,106,525) Net cash provided by operating activities 995,317 4,138,148 40,579 5,174,044 Purchase of capital assets (42,034) (2,001,848) - (2,043,882) Lease payments made (70,936) - - (70,936)
Debt payments made - (107,651) - (107,651)
Interest payments made (2,153) (4,268) - (6,421)
Proceeds from sale of capital assets - 179,178 - 179,178 (115,123) (1,934,589) - (2,049,712)

CASH FLOWS FROM INVESTING ACTIVITIES
Net investment income received 65,721 390,926 5,126 461,773 Net cash provided by investing activities 65,721 390,926 5,126 461,773 945,915 2,594,485 45,705 3,586,105
Cash and cash equivalents - beginning of fiscal year 688,850 6,066,687 47,114 6,802,651 Cash and cash equivalents - end of fiscal year $ 1,634,765 $ 8,661,172 $ 92,819 $ 10,388,756 1,634,765 8,661,172 92,819 10,388,756
- - - -
Risk Management Total
Fleet and
Equipment
Information
Technology
Net cash used by capital and related financing
activities
Net increase in cash and cash equivalents

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Attachment 1

City of El Paso de Robles
COMBINING STATEMENT OF CASH FLOWS (continued)
Internal Service Funds
For the Fiscal Year Ended June 30, 2024
Operating income $ 926,830 $ 3,430,636 $ 67,003 $ 4,424,469 Adjustments to reconcile operating activities:

Depreciation and amortization expense 364,356 910,480 - 1,274,836 Accounts receivable - (94,848) 57,610 (37,238)
Prepaid items (27,055) - (39,259) (66,314)
Deferred outflows of resources for pensions 73,743 (9,179) (468) 64,096 Deferred outflows of resources for OPEB (4,079) (2,742) 26 (6,795) Accounts payable (97,208) (120,492) (44,465) (262,165)
Accrued payroll expenses 959 1,822 124 2,905
Compensated absences 364 (3,524) - (3,160)
Net OPEB liability (17,687) (19,217) (1,178) (38,082)
Net pension liability (229,374) 44,606 - (184,768)
Deferred inflows of resources for pensions (2,479) 255 - (2,224) Deferred inflows of resources for OPEB 6,947 351 1,186 8,484 Net cash provided by operating activities $ 995,317 $ 4,138,148 $ 40,579 $ 5,174,044 Risk Management Total
Fleet and
Equipment
Information
Technology
Changes in assets, deferred outflows of
resources, liabilities and deferred inflows of
resources:

Reconciliation of operating income to net cash
provided by operating activities:

Attachment 1

CUSTODIAL FUNDS

Custodial Funds are reported using the economic resources measurement focus and the full accrual basis of accounting.

Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. These funds are used to account for assets held by the City for individuals, private organizations, other governmental units, and/or other funds, and therefore, they cannot be used to support the government's own programs.

War Memorial Hospital Scholarship Fund
This fund accounts for funds to provide scholarships to graduated local high school students who undertake courses in the medical field; scholarships are awarded by the Paso Robles Joint Unified School District.

Business Improvement Area Fund
This fund was established to account for funds collected for the Business Improvement Area to be used by the Downtown Mainstreet Association to provide various improvements in the downtown core.

Attachment 1

City of El Paso de Robles

COMBINING STATEMENT OF FIDUCIARY NET POSITION
Custodial Funds
Total
ASSETS 402 405
Cash and cash equivalents $ 112,546 $ 15,155 $ 127,701
Interest receivable 688 - 688
Total assets 113,234 15,155 128,389
0 LIABILITIES
Accounts payable - 15,155 15,155
Total liabilities - 15,155 15,155

NET POSITION
Restricted for:

Individuals, organizations, and other governments 113,234 - 113,234 Total net position $ 113,234 $ - $ 113,234
June 30, 2024
War Memorial
Hospital
Scholarship
Business
Improvement Area
Attachment 1

City of El Paso de Robles

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION Custodial Funds
For the Fiscal Year Ended June 30, 2024

ADDITIONS
Use of money and property $ 5,025 $ - $ 5,025
Custodial fund contributions - 21,383 21,383
Total additions 5,025 21,383 26,408

DELETIONS
Beneficiary payments - 21,383 21,383
Total deletions - 21,383 21,383
Change in net position 5,025 - 5,025
Net position - July 1 108,209 - 108,209
Net position - June 30 $ 113,234 $ - $ 113,234
- -
Total
War Memorial
Hospital
Scholarship
Business
Improvement Area
Attachment 1

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Attachment 1

Statistical Section
This part of the 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.

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

Revenue Capacity Data These schedules contain trend information to help the reader assess the City’s most significant local revenue source, the sales, property, and transient occupancy taxes.

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

Demographic and Economic
Information These schedules offer demographic and economic indicators to help the reader understand the environment within the City’s financial activities take place.

Operating Information These schedules contain service and infrastructure data to help the read understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

Attachment 1

Attachment 1

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Attachment 1

City of El Paso de Robles

NET POSITION BY COMPONENT
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18
Governmental Activities
Net investment in capital assets $ 155,232,979 $ 158,677,706 $ 164,498,515 $ 165,217,272 Restricted 35,972,834 36,178,938 37,112,951 13,360,698
Unrestricted (9,272,248) (680,702) 4,551,023 21,387,579 Total governmental activities net position $ 181,933,565 $ 194,175,942 $ 206,162,489 $ 199,965,549 Business-Type Activities
Net investment in capital assets $ 75,041,798 $ 75,463,778 $ 77,831,910 $ 80,955,731 Restricted - - 9,394,686 9,790,196
Unrestricted 18,805,916 18,211,973 8,093,552 2,452,843
Total business-type activities net position $ 93,847,714 $ 93,675,751 $ 95,320,148 $ 93,198,770 Primary Government
Net investment in capital assets $ 230,274,777 $ 234,141,484 $ 242,330,425 $ 246,173,003 Restricted 35,972,834 36,178,938 46,507,637 23,150,894
Unrestricted 9,533,668 17,531,271 12,644,575 23,840,422 Total primary government $ 275,781,279 $ 287,851,693 $ 301,482,637 $ 293,164,319 Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 170,523,910 $ 176,101,123 $ 190,141,957 $ 200,336,981 $ 216,455,421 $ 222,920,340 22,417,524 21,351,434 30,096,396 30,895,914 31,663,321 40,530,502 15,201,334 16,237,074 5,477,801 32,476,707 30,953,901 43,941,144 $ 208,142,768 $ 213,689,631 $ 225,716,154 $ 263,709,602 $ 279,072,643 $ 307,391,986 $ 71,858,414 $ 71,858,414 $ 87,809,962 $ 87,509,379 $ 85,746,827 $ 92,888,464 9,526,934 9,526,934 8,522,563 3,152,473 3,152,473 2,647,831 10,549,846 10,549,846 1,951,785 14,827,689 25,191,621 30,315,058 $ 91,935,194 $ 91,935,194 $ 98,284,310 $ 105,489,541 $ 114,090,921 $ 125,851,353 $ 242,382,324 $ 247,959,537 $ 277,951,919 $ 287,846,360 $ 302,202,248 $ 315,808,804 31,944,458 30,878,368 38,618,959 34,048,387 34,815,794 43,178,333 25,751,180 26,786,920 7,429,586 47,304,396 56,145,522 74,256,202 $ 300,077,962 $ 305,624,825 $ 324,000,464 $ 369,199,143 $ 393,163,564 $ 433,243,339 Attachment 1

City of El Paso de Robles

CHANGES IN NET POSITION
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18

PRIMARY GOVERNMENT EXPENSES
Governmental activities:

General government $ 3,871,197 $ 5,633,775 $ 5,397,984 $ 4,775,437 Public safety 13,726,955 14,314,322 14,706,318 16,999,236 Public works 10,961,768 11,566,256 7,488,142 8,948,531
Highways and streets - - - -
Sanitation - - - -
Health and welfare - - - -
Library and recreation services 2,382,435 2,479,480 - - Culture-recreation - - - -
Urban redevelopment and housing - - - -
Community services - - 7,890,550 8,158,759
Community development 2,415,910 2,242,176 3,149,976 3,100,227 Economic development and assistance - - - -
Interest expense on long-term debt 2,613,862 1,646,147 1,423,147 1,256,079 Intergovernmental - - - -
Total governmental activities expenses 35,972,127 37,882,156 40,056,117 43,238,269 Business-type activities:

Water operations 7,557,436 11,926,648 11,655,073 14,104,846 Wastewater operations 7,572,147 8,245,447 7,769,493 10,295,996 Airport operations 806,321 806,362 645,795 1,136,258
Transit operations 13,134 14,082 16,080 38,022
Parking operations - - - -
Total business-type activities 15,949,038 20,992,539 20,086,441 25,575,122 Total primary government expenses $ 51,921,165 $ 58,874,695 $ 60,142,558 $ 68,813,391

PRIMARY GOVERNMENT PROGRAM REVENUES
Governmental activities:

Charges for services:

General government $ 312,563 $ 501,011 $ 745,517 $ 468,888 Public safety 310,790 341,437 1,079,294 1,123,683
Public works 1,167,920 1,469,761 3,009,284 1,062,987
Highways and streets - - - -
Sanitation - - - -
Health and welfare - - - -
Library and recreation services 393,824 451,606 - -
Culture-recreation - - - -
Community services - - 1,159,914 584,777
Community development 149,905 293,142 1,211,108 881,984 Economic development and assistance - - - -
Operating grants and contributions 2,926,438 3,284,350 683,988 862,329 Capital grants and contributions 1,814,700 3,675 1,934,046 1,436,669 Total governmental activities program revenues 7,076,140 6,344,982 9,823,151 6,421,317 Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 5,784,275 $ 7,127,551 $ 8,760,152 $ 4,255,252 $ 8,296,909 $ 9,981,790 17,474,064 19,350,278 21,295,400 18,873,101 32,518,993 27,936,473 8,031,210 8,458,603 - - - -
- - 8,360,549 9,437,822 10,714,433 12,416,189
- - 469,600 486,619 937,337 1,065,977
- - 174,247 21,118 83,774 15,512
- - - - - -
- - 7,495,360 8,944,983 9,258,774 10,342,825
- - - - 169,869 246,065
9,381,723 9,127,658 - - - -
3,464,646 3,997,039 - - - -
- - 244,485 632,370 919,319 679,788
1,454,855 1,025,335 722,692 728,305 1,133,573 324,439
- - 138,763 - - -
45,590,773 49,086,464 47,661,248 43,379,570 64,032,981 63,009,058 14,974,560 13,263,669 14,872,130 13,916,471 14,052,151 14,613,298 10,094,911 9,931,389 9,644,890 10,051,515 9,518,425 10,883,990 921,562 962,924 1,139,219 1,384,856 1,016,792 1,540,919 33,136 33,136 33,136 33,136 33,136 33,136
115,946 525,625 314,373 481,163 769,332 248,020
26,140,115 24,716,743 26,003,748 25,867,141 25,389,836 27,319,363 $ 71,730,888 $ 73,803,207 $ 73,664,996 $ 69,246,711 $ 89,422,817 $ 90,328,421 $ 764,611 $ 542,318 $ 1,091,835 1,300,883 1,493,058 $ 1,093,363 1,123,335 1,089,338 2,301,599 2,804,134 3,018,408 3,194,434 1,990,874 291,312 - - - -
- - 855,280 1,335,911 3,626,819 3,200,961
- - - - - 190,000
- - - - 15,896 -
- - - - - -
- - 2,111,646 3,250,250 1,271,674 539,550
729,478 293,677 - - - -
1,188,949 1,397,003 - - - -
- - - 7,884 - -
2,676,055 4,181,472 2,907,433 2,384,482 1,422,500 1,072,754 1,531,307 2,274,289 778,919 7,046,952 1,057,737 6,554,131 10,004,609 10,069,409 10,046,712 18,130,496 11,906,092 15,845,193 Continued
Attachment 1

City of El Paso de Robles
CHANGES IN NET POSITION (continued)
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18
PRIMARY GOVERNMENT PROGRAM REVENUES - continued
Business-type activities:

Charges for services:

Water operations $ 9,413,872 $ 8,770,194 $ 11,890,095 $ 13,925,852 Wastewater operations 7,554,595 8,530,227 10,785,883 9,646,029 Airport operations 613,523 698,523 833,242 728,473
Transit operations - - - -
Parking operations - - - -
Operating grants and contributions 1,881,513 347,283 215,201 252,609 Capital grants and contributions 1,873,174 2,626,726 538,688 1,517,668 21,336,677 20,972,953 24,263,109 26,070,631
Total primary government program revenues $ 28,412,817 $ 27,317,935 $ 34,086,260 $ 32,491,948 Net revenue (expense)
Governmental activities $ (28,895,987) $ (31,537,174) $ (30,232,966) $ (36,816,952) Business-type activities 5,387,639 (19,586) 4,176,668 495,509 Total primary government net expense $ (23,508,348) $ (31,556,760) $ (26,056,298) $ (36,321,443) Governmental activities:

Taxes:

Property taxes $ 14,179,631 $ 13,478,558 $ 13,771,455 $ 14,616,915 Sales and use taxes 13,130,906 14,416,282 14,499,567 15,393,096 Transient occupancy taxes 4,249,068 4,740,344 5,417,254 5,619,769 Other taxes 2,067,684 3,259,467 4,494,011 4,518,023
From other agencies 248,787 141,414 - -
Licenses and permits 1,022,893 1,322,970 - -
Use of money and property 3,775,572 2,621,958 483,455 396,343 Other revenues 2,582,644 4,184,392 1,065,848 262,935
Transfers 195,024 936,278 1,144,479 1,332,870
Total governmental activities 41,452,209 45,101,663 40,876,069 42,139,951 Business-type activities:

Property taxes 1,441 544 53,749 61,526
From other agencies - 330,511 - -
Use of money and property 1,096,015 452,846 46,082 (92,178) Other revenues - - 18,791 13,377
Transfers (195,024) (936,278) (1,144,479) (1,058,488)
Total business-type activities 902,432 (152,377) (1,025,857) (1,075,763) $ 42,354,641 $ 44,949,286 $ 39,850,212 $ 41,064,188

CHANGE IN NET POSITION
Governmental activities $ 12,556,222 $ 13,564,489 $ 10,643,103 $ 5,322,999 Business-type activities 6,290,071 (171,963) 3,150,811 (580,254) Total primary government $ 18,846,293 $ 13,392,526 $ 13,793,914 $ 4,742,745 Total business-type activities program revenues

GENERAL REVENUES AND OTHER CHANGES IN NET

POSITION
Total primary government general revenues and
other changes in net position
Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 14,422,756 $ 15,374,288 $ 17,048,741 $ 17,616,104 $ 17,792,089 $ 17,765,029 10,028,654 9,650,927 9,667,716 12,269,500 13,374,038 13,513,925 774,954 793,374 938,252 912,473 1,070,782 1,337,952
- - - - - -
5,430 50,197 95,890 408,640 635,777 416,738
385,686 564,753 839,916 1,441,502 1,161,862 919,148
119,973 4,056,160 39,518 1,584,698 166,029 3,965,388
25,737,453 30,489,699 28,630,033 34,232,917 34,200,577 37,918,180 $ 35,742,062 $ 40,559,108 $ 38,676,745 $ 52,363,413 $ 46,106,669 $ 53,763,373 $ (35,586,164) $ (39,017,055) $ (37,614,536) $ (25,249,074) $ (52,126,889) $ (47,163,865) (402,662) 5,772,956 2,626,285 8,365,776 8,810,741 10,598,817 $ (35,988,826) $ (33,244,099) $ (34,988,251) $ (16,883,298) $ (43,316,148) $ (36,565,048) $ 13,548,133 $ 14,247,879 $ 14,012,627 $ 14,765,732 $ 15,779,797 $ 16,888,628 15,918,181 15,114,426 20,948,802 33,540,805 33,546,372 33,899,432 6,248,573 5,110,558 7,132,691 9,803,368 9,824,200 9,946,197 4,653,114 4,589,221 4,928,368 5,125,133 5,972,504 6,112,116 - - - - - -
- - - - - -
3,068,936 3,622,862 878,321 (1,241,190) 1,885,763 6,908,992 680,588 579,318 210,487 408,299 19,996 800,279
1,673,574 1,299,654 1,529,763 840,375 802,286 927,564
45,791,099 44,563,918 49,641,059 63,242,522 67,830,918 75,483,208 64,571 65,132 61,505 70,482 84,111 89,898
- - - - - -
715,384 660,700 (50,046) (415,414) 452,761 1,954,886
32,705 10,943 31,058 24,762 56,053 44,395
(1,673,574) (1,299,654) (1,529,763) (840,375) (802,286) (927,564) (860,914) (562,879) (1,487,246) (1,160,545) (209,361) 1,161,615 $ 44,930,185 $ 44,001,039 $ 48,153,813 $ 62,081,977 $ 67,621,557 $ 76,644,823 $ 10,204,935 $ 5,546,863 $ 12,026,523 $ 37,993,448 $ 15,704,029 $ 28,319,343 (1,263,576) 5,210,077 1,139,039 7,205,231 8,601,380 11,760,432 $ 8,941,359 $ 10,756,940 $ 13,165,562 $ 45,198,679 $ 24,305,409 $ 40,079,775 Concluded
Attachment 1

City of El Paso de Robles

FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18

GENERAL FUND
Nonspendable $ 3,319,043 $ 3,018,269 $ 2,979,382 $ 4,267,691 Restricted - 605,304 - -
Committed - - - 13,248,022
Assigned 2,992,638 4,934,805 5,363,864 7,758,170
Unassigned 12,435,755 20,173,754 21,276,546 11,358,370
Total general fund $ 18,747,436 $ 28,732,132 $ 29,619,792 $ 36,632,253

ALL OTHER GOVERNMENTAL FUNDS
Restricted $ 30,517,230 $ 27,919,739 $ 29,510,502 $ 14,110,859 Committed - - - -
Assigned 148,067 - - -
Unassigned (2,123,938) (2,193,048) (2,202,969) (6,067,600) Total all other governmental funds $ 28,541,359 $ 25,726,691 $ 27,307,533 $ 8,043,259 Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 4,962,449 $ 3,210,275 $ 3,298,817 $ 2,751,041 $ 2,711,916 $ 3,098,040 - - - - - -
- - - - - -
3,075,786 9,650,317 5,135,554 632,738 1,096,967 4,794,985 16,586,068 17,818,746 23,460,887 27,029,740 21,019,448 17,714,177 $ 24,624,303 $ 30,679,338 $ 31,895,258 $ 30,413,519 $ 24,828,331 $ 25,607,202 $ 30,535,097 $ 29,426,566 $ 30,096,396 $ 30,895,914 $ 31,663,321 $ 37,138,643 8,757,368 13,970,888 - - 14,589,252 20,592,455
2,138,484 934,809 11,525,382 26,199,337 23,019,732 30,087,481 (1,567,062) (1,904,461) 147,012 (1,538,139) (1,523,383) (1,542,807) $ 39,863,887 $ 42,427,802 $ 41,768,790 $ 55,557,112 $ 67,748,922 $ 86,275,772 Attachment 1

City of El Paso de Robles

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18

REVENUES
Taxes $ 33,627,289 $ 35,894,651 $ 38,178,013 $ 40,147,803 Licenses and permits 1,022,893 1,322,970 819,308 564,337 Fines and forfeitures 206,714 199,613 179,672 177,138
Use of money and property 3,775,572 1,286,290 422,948 365,053 Intergovernmental revenues 4,989,926 3,240,667 2,291,741 2,023,313 Charges for current services 2,335,003 3,034,954 6,310,411 2,790,306 Other revenues 946,980 1,692,254 1,155,848 262,935
Total revenues 46,904,377 46,671,399 49,357,941 46,330,885

EXPENDITURES
Current:

General government 5,109,719 3,306,703 5,124,207 3,959,465 Public safety 13,206,909 13,474,420 15,829,754 14,536,296 Public works 6,577,973 6,683,735 2,639,375 3,225,024
Highways and streets - - - -
Sanitation - - - -
Health and welfare - - - -
Library and recreation services 1,980,504 1,995,032 - - Culture-recreation - - - -
Community services - - 7,290,008 7,360,489
Community development 2,379,236 2,220,585 3,082,615 3,065,976 Urban redevelopment and housing - - - -
Economic development and assistance - - - -
Capital outlay 12,433,112 11,061,482 8,285,208 7,206,662 Debt service:

IntInterest 2,552,381 1,585,657 1,415,934 1,295,230
Pr Principal 2,101,496 2,356,341 4,683,266 2,406,070
Bond issuance costs - - - -
Agent fees 755 4,302 1,820 3,631
Intergovernmental - - - -
Total expenditures 46,342,085 42,688,257 48,352,187 43,058,843 562,292 3,983,142 1,005,754 3,272,042

OTHER FINANCING SOURCES (USES)
Transfers in 12,881,982 8,821,167 2,410,797 7,969,427
Transfers out (12,686,958) (7,884,889) (1,263,557) (6,910,939) Proceeds of general capital asset dispositions - - - -
Issuances of debt 1,704,811 1,935,101 - 2,354,218
Contribution from/(to) Successor Agency 984,202 315,507 315,508 275,685 Total other financing sources (uses) 2,884,037 3,186,886 1,462,748 3,688,391 Net change in fund balances 3,446,329 7,170,028 2,468,502 6,960,433 Fund balances - July 1 $ 49,985,051 $ 47,288,795 $ 54,458,823 $ 56,927,325 Prior period adjustments (6,142,585) - - 142,680
Fund balances - June 30 $ 47,288,795 $ 54,458,823 $ 56,927,325 $ 64,030,438 Debt service as a percentage of non-capital
expenditures 13.72% 12.46% 15.22% 10.32%
Excess (deficiency) of revenues over (under)
expenditures
Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 40,368,001 $ 39,062,084 $ 47,022,488 $ 63,235,038 $ 65,122,873 $ 66,846,373 563,948 648,309 561,801 786,474 1,217,859 1,423,225
131,892 106,595 134,811 97,187 180,488 189,950
2,969,510 3,472,355 725,318 (1,228,424) 1,871,570 6,861,464 2,516,651 4,673,079 3,686,352 3,248,448 2,480,237 7,626,885 5,625,843 4,741,426 5,825,230 7,947,112 8,165,807 6,605,133 683,400 579,318 210,487 346,820 238,658 800,279
52,859,245 53,283,166 58,166,487 74,432,655 79,277,492 90,353,309 6,649,678 5,883,567 9,249,253 11,502,346 7,591,761 9,192,719 16,634,327 16,119,175 18,744,982 20,392,515 26,157,755 31,515,165 2,100,697 1,718,555 - - - -
- - 2,687,268 3,249,620 5,239,811 7,425,584
- - 309,561 437,239 505,383 744,705
- - 174,247 17,359 83,774 15,512
- - - - - -
- - 6,302,906 7,377,255 8,043,906 9,482,776
8,286,830 7,612,302 - - - -
3,396,257 3,627,041 - - - -
- - - - 3,138,536 246,065
- - 223,818 591,765 931,366 668,530
8,316,414 11,430,869 20,825,742 11,039,500 18,673,772 10,219,347 1,456,073 1,017,744 974,105 915,111 858,542 770,387
19,738,749 2,683,538 1,999,853 1,844,839 1,912,508 1,686,582 144,874 - - - - -
1,655 2,060 1,815 - 1,054 1,780
- - 138,763 1,902 - -
66,725,554 50,094,851 61,632,313 57,369,451 73,138,168 71,969,152 (13,866,309) 3,188,315 (3,465,826) 17,063,204 6,139,324 18,384,157 20,332,023 10,846,287 21,979,343 15,051,559 26,430,454 14,148,631 (18,658,449) (9,546,633) (20,449,580) (19,808,180) (25,628,168) (13,221,067) 1,925,855 120,478 2,492,971 - - -
14,940,639 - - - - -
- (205,504) - - - -
18,540,068 1,214,628 4,022,734 (4,756,621) 802,286 927,564 4,673,759 4,402,943 556,908 12,306,583 6,941,610 19,311,721 $ 64,030,438 $ 68,704,197 $ 73,107,140 $ 73,107,140 $ 85,970,631 $ 92,571,253 - - - - (340,988) -
$ 68,704,197 $ 73,107,140 $ 73,664,048 $ 85,413,723 $ 92,571,253 $ 111,882,974

36.29% 9.57% 7.29% 5.96% 5.09% 3.98%
Attachment 1

THIS PAGE IS INTENTIONALLY LEFT BLANK
Attachment 1

City of El Paso de Robles

TAX REVENUE BY SOURCE - GENERAL FUND
Last Ten Fiscal Years
2014-15 $ 10,732,191 $ 11,212,291 $ 4,249,068 $ 2,541,327 $ 455,078 $ 547,870 $ 29,737,825 2015-16 11,009,178 12,538,443 4,740,344 2,674,453 502,777 585,014 32,050,209 2016-17 9,734,032 14,499,567 5,417,254 3,078,175 502,091 677,749 33,908,868 2017-18 10,457,497 15,393,096 5,619,769 3,373,843 550,122 594,058 35,988,385 2018-19 10,927,284 15,918,181 6,248,573 3,476,769 576,013 600,332 37,747,152 2019-20 11,788,206 15,114,426 5,110,558 3,456,846 507,722 624,653 36,602,411 2020-21 11,723,491 17,868,738 7,132,691 3,728,157 537,074 663,137 41,653,288 2021-22 12,317,409 20,398,804 9,803,368 3,722,574 554,943 847,616 47,644,714 2022-23 13,165,625 20,218,493 9,824,200 2,900,266 646,001 853,812 47,608,397 2023-24 14,210,193 20,389,691 9,946,197 3,033,683 581,644 803,123 48,964,531 Notes:

All Other Taxes Total
1 - Due to passage of Proposition 13, the maximum property tax rate is set at 1% of assessed valuation unless otherwise approved by vote of the electorate. Except for general obligation bond override approved by voters in 1998, there are no general use property tax overrides authorized. The growth in property tax revenues is due to significant growth in assessed valuations arising from new residential and commercial development and property ownership turnover.
2 - The growth in sales tax revenues is attributable to growth in retail sales as well as the 1/2 cent sales tax initiative approved by voters in 2012. Sales tax generated from Measure J-20 one cent sales tax is accounted for in a stand alone fund and is not part of the activity above.

Fiscal Year Property Taxes1
Sales & Use
Tax2
Transient
Occupancy Tax
Franchise
Revenues
Business
License
Attachment 1

City of El Paso de Robles
ASSESSED VALUE OF TAXABLE PROPERTY1
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18
Residential $ 2,683,554,929 $ 2,818,066,533 $ 2,978,363,819 $ 3,151,469,801 Commercial 701,807,742 737,169,745 774,054,769 848,668,308 Industrial 168,073,030 176,171,430 188,201,454 194,185,968 Dry Farm 20,038,012 21,212,316 26,033,859 28,610,732
Government Owned - 164,006 - -
Institutional 1,942,089 1,969,504 1,966,745 2,501,775
Irrigated 10,982,772 10,769,227 10,554,633 10,736,555
Miscellaneous 5,234,266 5,354,379 6,607,050 8,589,969
Recreational 34,712,216 44,846,704 42,568,667 49,115,737 Vacant 139,716,912 161,534,728 172,579,985 169,648,990
SBE Nonunitary 162,043 162,043 162,043 155,000
Unsecured 210,454,029 215,545,627 224,084,154 209,853,159 Unknown - - - -
Total $ 3,976,678,040 $ 4,192,966,242 $ 4,425,177,178 $ 4,673,535,994 Total Direct Rate2 0.22480 0.22162 0.20800 0.20737
Notes:
2 - Exempt values are not included in total direct rate.

Data Source:

San Luis Obispo County Assessor Combined Tax Rolls
Category
1 - In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 3,324,175,748 $ 3,529,219,031 $ 3,692,309,077 $ 3,813,052,237 $ 4,053,872,050 $ 4,316,319,068 942,828,626 675,241,513 713,832,621 1,010,624,089 1,069,530,492 1,135,279,949 225,071,006 244,672,504 266,365,168 272,676,203 281,791,157 296,297,226 8,821,779 17,357,137 17,614,048 5,219,603 4,281,200 4,365,422 554,977 1,980,641 2,020,253 2,041,180 2,129,758 3,678,669 2,201,041 5,057,410 4,174,945 7,629,776 23,548,769 23,706,479 11,997,805 12,237,742 12,744,994 12,907,255 12,464,645 12,746,420 9,917,588 7,568,989 8,189,258 10,580,981 14,048,812 10,810,271 47,571,173 34,175,060 38,709,333 58,387,095 69,314,076 73,248,514 151,993,493 409,747,446 398,294,394 257,810,894 279,293,487 331,270,859 155,000 155,000 555,000 555,000 598,400 598,400
234,626,655 243,605,442 247,137,563 248,923,911 285,812,712 349,705,776 - 66,104,168 90,974,281 - - 4,612,589
$ 4,959,914,891 $ 5,247,122,083 $ 5,492,920,935 $ 5,700,408,224 $ 6,096,685,558 $ 6,562,639,642

0.20434 0.19719 0.19131 0.19311 0.19024 0.18556
Attachment 1

City of El Paso de Robles

NET TAXABLE ASSESSED VALUE HISTORY
Last Ten Fiscal Years
2014-15 $ 3,766,061,968 $ 210,454,029 $ 162,043 3,976,678,040 - 2015-16 3,977,258,572 215,545,627 162,043 4,192,966,242 5.44% 2016-17 4,200,930,981 224,084,154 162,043 4,425,177,178 5.54% 2017-18 4,463,527,835 209,853,159 155,000 4,673,535,994 5.61% 2018-19 4,725,133,236 234,626,655 155,000 4,959,914,891 6.13% 2019-20 5,003,361,641 243,605,442 155,000 5,247,122,083 5.79% 2020-21 5,245,228,372 247,137,563 555,000 5,492,920,935 4.68% 2021-22 5,450,929,313 248,923,911 555,000 5,700,408,224 3.78% 2022-23 5,810,274,446 285,812,712 598,400 6,096,685,558 6.95% 2023-24 6,212,335,466 349,705,776 598,400 6,562,639,642 7.64% Average % Change 6.50%
Data Source:

San Luis Obispo County Assessor - Combined Tax Rolls
Fiscal Year Secured Unsecured SBE Nonunitary % Change
Net Total Assessed
Value
Attachment 1

City of El Paso de Robles

PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Rate per $100 of Taxable Value
Last Ten Fiscal Years
2014-15 1.00000% 0.06630% 0.00000% 0.01190% 0.00400% 0.05800% 1.14020% 2015-16 1.00000% 0.06430% 0.01925% 0.01190% 0.00374% 0.05800% 1.15719% 2016-17 1.00000% 0.05160% 0.01925% 0.01190% 0.00400% 0.05800% 1.14475% 2017-18 1.00000% 0.05160% 0.01925% 0.01190% 0.00400% 0.05800% 1.14475% 2018-19 1.00000% 0.04940% 0.01925% 0.06043% 0.00400% 0.05800% 1.19108% 2019-20 1.00000% 0.04250% 0.01925% 0.06043% 0.00400% 0.05800% 1.18418% 2020-21 1.00000% 0.03630% 0.01925% 0.06043% 0.00400% 0.05800% 1.17798% 2021-22 1.00000% 0.04010% 0.01925% 0.06043% 0.00400% 0.05800% 1.18178% 2022-23 1.00000% 0.03720% 0.01925% 0.06043% 0.00400% 0.05800% 1.17888% 2023-24 1.00000% 0.03450% 0.01925% 0.05810% 0.00363% 0.05800% 1.17348% Notes:

Data Source:

San Luis Obispo County Assessor Tax Rate Table
Templeton
Unified
School
District
Total Direct
and
Overlapping
Tax Rates2
1 - In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. The 1.00% is shared by all taxing agencies within which the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 2 - Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.

Fiscal Year
San Luis
Obispo
County Tax
Rate1
General
Obligation
Debt Service
Cuesta
Community
College
Paso Robles
Joint Unified
School
District
State Water
Board
Attachment 1

City of El Paso de Robles

PRINCIPAL PROPERTY TAXPAYERS
Current Fiscal Year and Nine Fiscal Years Ago
Taxpayer
Firestone Walker LLC Commercial $ 107,312,938 1 1.64%
Blue Oak TIC Owner I LLC Residential 76,417,439 2 1.16% Justin Vineyards and Winery LLC Commercial 68,866,781 3 1.05% PDOF Paso LLC Commercial 62,460,935 4 0.95%
Ayres - Paso Robles LP Commercial 36,149,997 5 0.55%
Paso Golden Hill LLC Commercial 34,288,136 6 0.52%
Sun Paso Robles RV LLC Vacant 31,188,169 7 0.48%
SGS Holding Company LLC Commercial 30,950,000 8 0.47%
Riboli Paso Robles LLC Commercial 28,697,362 9 0.44%
Vina Robles Inc Commercial 26,839,900 10 0.41%
DS Paso Crossing LLC Commercial - - -
Dry Creek Apartments LP Residential - - -
John Stephenson Trust Industrial - - -
Probitas Properties Ramada LLC Industrial - - -
Pacific Coast Hotel Properties LLC Commercial - - -
Specialty Silicone Fabricators Inc Unsecured - - -
Tri-W Enterprises, Inc Commercial - - -
Totals $ 503,171,657 7.67%
Data Source:

San Luis Obispo County Assessor Combined Tax Rolls and SBE Nonunitary Tax Roll Fiscal Year 2023-24
Type of Business Assessed Valuation Rank
Percentage of Total
Taxable Assessed
Valuation
Attachment 1

$ 27,256,192 4 0.69%
- - -
30,303,713 3 0.76%
- - -
- - -
30,470,586 2 0.77%
- - -
- - -
- - -
- - -
36,886,697 1 0.93%
21,313,906 5 0.54%
18,006,137 6 0.45%
15,000,000 7 0.38%
14,413,387 8 0.36%
14,079,694 9 0.35%
13,500,727 10 0.34%
$ 221,231,039 5.57%
Fiscal Year 2014-15
Assessed Valuation Rank
Percentage of Total
Taxable Assessed
Valuation
Attachment 1

THIS PAGE IS INTENTIONALLY LEFT BLANK
Attachment 1

City of El Paso de Robles

PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Fiscal Year Tax Levy
2014-15 $ 6,159,163 $ 6,159,163 100.00% $ - $ 6,159,163 100.00% 2015-16 6,220,706 6,220,706 100.00% - 6,220,706 100.00% 2016-17 6,687,239 6,687,239 100.00% - 6,687,239 100.00% 2017-18 7,187,246 7,187,246 100.00% - 7,187,246 100.00% 2018-19 7,461,972 7,461,972 100.00% - 7,461,972 100.00% 2019-20 8,129,560 8,129,560 100.00% - 8,129,560 100.00% 2020-21 8,001,494 8,001,494 100.00% - 8,001,494 100.00% 2021-22 8,362,181 8,362,181 100.00% - 8,362,181 100.00% 2022-23 9,144,084 9,144,084 100.00% - 9,144,084 100.00% 2023-24 9,585,017 9,585,017 100.00% - 9,585,017 100.00% Note:

Data Source:

San Luis Obispo County Auditor-Controller
The City has elected the Teeter Plan method of property tax collection, whereby the County remits 100% of taxes levied and pursues collection and retains any delinquent taxes and related penalties and interest.

Collected within the
Fiscal Year of the Levy
Collections in
Subsequent Year
Total Collections to Date
Amount
Percentage of
Levy Amount
Percentage of
Levy
Attachment 1

City of El Paso de Robles

TAXABLE SALES BY CATEGORY - ADJUSTED FOR ECONOMIC DATA
In Thousands of Dollars
Last Ten Calendar Years
2014 2015 2016 2017
Apparel Stores $ 27,497 $ 28,515 $ 30,399 $ 31,605
General Merchandise 95,985 97,031 97,750 97,860
Food Stores 26,773 27,636 28,540 29,541
Eating and Drinking Places 98,318 102,916 108,984 118,772 Building Materials 86,906 95,137 101,621 110,650
Auto Dealers and Supplies 130,496 154,461 182,551 188,529 Service Stations 108,740 102,707 93,542 108,408
Other Retail Stores 84,133 90,796 92,562 94,509
All Other Outlets 118,911 123,086 121,041 126,582
Total $ 777,759 $ 822,285 $ 856,990 $ 906,456
Note:

Data Sources:

State Board of Equalization
California Department of Taxes and Fees Administration
State Controller's Office
The HdL Companies
Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternate information regarding the sources of the City's revenue.

Attachment 1

2018 2019 2020 2021 2022 2023
$ 32,215 $ 33,163 $ 26,825 $ 41,150 $ 40,907 $ 40,902
98,726 97,447 91,715 103,517 109,384 109,471
30,422 31,724 34,700 34,856 37,041 37,613
115,954 123,009 103,489 147,156 161,044 162,049
118,296 110,225 128,168 144,119 158,500 152,929
186,794 180,485 185,671 206,734 203,264 186,359
125,238 124,954 92,649 128,973 159,991 152,569
94,657 92,247 92,215 105,150 106,457 101,252
139,601 130,977 108,586 154,750 412,069 401,425
$ 941,903 $ 924,231 $ 864,018 $ 1,066,405 $ 1,388,657 $ 1,344,569 Attachment 1

THIS PAGE IS INTENTIONALLY LEFT BLANK
Attachment 1

City of El Paso de Robles

SALES TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
Fiscal Year Total Rate
2014-15 0.75% 0.50% 6.50% 0.25% 8.00%
2015-16 0.75% 0.50% 6.50% 0.25% 8.00%
2016-172 1.00% 0.50% 6.00% 0.25% 7.75%
2017-18 1.00% 0.50% 6.00% 0.25% 7.75%
2018-19 1.00% 0.50% 6.00% 0.25% 7.75%
2019-20 1.00% 0.50% 6.00% 0.25% 7.75%
2020-21 1.00% 1.50% 6.00% 0.25% 8.75%
2021-22 1.00% 1.50% 6.00% 0.25% 8.75%
2022-23 1.00% 1.50% 6.00% 0.25% 8.75%
2023-24 1.00% 1.50% 6.00% 0.25% 8.75%
Notes:

Data Source:

State of California - Board of Equalization
1 - In 2012, City voters approved Measure E-12, a half cent supplemental sales tax; this became effective April 1, 2013. In 2020, City voters approved Measure J-20, a one cent supplemental sales tax; this became effective April 1, 2021. Both measures automatically expire twelve years after the effective date, unless extended by voters beforehand. 2 - In 2004, the State of California implemented the "Triple Flip" sales tax swap where the State swapped a quarter cent sales tax revenue from the local municipalities in exchange for the County Education Revenue Augmentation Fund (ERAF). This arrangement ended in the 2016-17 fiscal year.

City Direct Rates Overlapping Rates
City Supplemental1 State of California
County of San Luis
Obispo
Attachment 1

City of El Paso de Robles

RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Fiscal Year
2014-15 $ 25,480,026 $ 2,727,398 $ 2,460,000 $ - $ - $ 2,808,780 2015-16 23,859,064 2,517,598 2,240,000 - - 2,315,403
2016-17 22,204,529 2,307,798 1,650,099 - - 1,789,672
2017-18 20,500,487 2,097,998 1,386,639 - - 3,705,322
2018-19 14,525,636 1,888,198 1,117,474 - - 3,305,589
2019-20 12,609,724 1,678,398 843,200 - - 2,812,238
2020-21 11,227,152 1,468,598 564,375 - - 2,473,782
2021-22 9,801,293 1,258,798 286,436 - - 2,195,042
2022-23 8,320,902 1,048,998 - 438,969 113,337 1,907,999 2023-24 6,784,793 839,198 - 227,285 42,401 1,669,595
Subscription
General Bonds Payable
Premium on GO
Bonds COP All Other Debt
Governmental Activities
Leases Payable
Attachment 1

$ - $ 5,705,000 $ 420,747 $ 245,613 $ 40,923,266 $ 80,770,830 1.95% $ 2,472.22 - 5,470,000 395,997 204,496 46,227,627 83,230,185 1.92% 2,530.05 - 5,230,000 371,247 161,882 44,239,217 77,954,444 1.70% 2,371.25 - 4,980,000 346,497 130,985 46,209,040 79,356,968 1.65% 2,461.67 8,118,000 4,715,000 321,747 112,121 53,111,067 87,214,832 1.71% 2,720.68 7,662,376 4,440,000 296,997 92,805 48,165,536 78,601,274 1.43% 2,517.58 7,209,970 4,160,000 272,247 73,026 45,792,524 73,241,674 1.33% 2,357.08 6,744,579 3,860,000 247,497 52,774 43,378,422 67,824,841 1.19% 2,175.55 6,265,830 3,540,000 222,747 32,037 40,922,501 62,813,320 1.03% 2,028.57 5,773,339 3,205,000 197,997 12,320 39,970,618 58,722,546 0.89% 1,899.98 Business-Type Activities
Outstanding
Debt per Capita
Total Primary
Government
Outstanding
Debt to
Water Bonds Sewer Bonds Assessed Value
Premium on
Sewer Bonds
Financed
Purchases Loans Payable
Attachment 1

City of El Paso de Robles

RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Fiscal Year
2014-15 $ 25,480,026 $ 5,852,527 $ 19,627,499 0.49% 30,423 $ 645.15 2015-16 23,859,064 5,796,871 18,062,193 0.43% 31,398 575.27 2016-17 22,204,529 5,301,187 16,903,342 0.38% 31,745 532.47 2017-18 20,500,487 4,958,991 15,541,496 0.33% 31,559 489.57 2018-19 16,413,834 2,161,764 14,252,070 0.29% 31,244 456.15 2019-20 14,288,122 1,870,963 12,417,159 0.23% 31,221 397.72 2020-21 12,695,750 1,841,068 10,854,682 0.20% 31,073 349.33 2021-22 11,060,091 1,958,686 9,101,405 0.16% 31,176 291.94 2022-23 9,369,900 2,303,517 7,066,383 0.11% 30,692 230.24 2023-24 7,623,991 2,776,941 4,847,050 0.07% 30,907 156.83 Net Bonded Debt
per Capita
General Bonded
Debt
Less: Amount
Available in Debt
Service Funds
Net General
Bonded Debt
Ratio of Net
Bonded Debt to
Assessed Value Population
Attachment 1

City of El Paso de Robles

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
For the Fiscal Year Ended June 30, 2024
Jurisdiction
Direct and Overlapping Tax and Assessment Debt
San Luis Obispo Community College District $ 205,380,000 9.185% $ 18,864,153 Paso Robles Joint Unified School District 13,704,998 52.494% 7,194,302 Paso Robles Joint Unified School District SFID No. 1 82,495,000 62.688% 51,714,466 Templeton Unified School District 31,495,000 3.194% 1,005,950 City of Paso Robles General Obligation Bonds 7,623,991 100.000% 7,623,991 Total Direct and Overlapping Tax and Assessment Debt 86,402,862 Direct and Overlapping General Fund Debt
San Luis Obispo County Certificates of Participation 81,021,650 9.222% 7,471,817 San Luis Obispo County Pension Obligations 22,760,324 9.222% 2,098,957 City of El Paso de Robles Financed Purchases 71,858 100.000% 71,858 City of El Paso de Robles Leases Payable 227,285 100.000% 227,285 City of El Paso de Robles Subscription Payable 42,401 100.000% 42,401 City of El Paso de Robles Loans Payable 1,597,737 100.000% 1,597,737 Total Direct and Overlapping General Fund Debt 11,510,055 Overlapping Tax Increment Debt (Successor Agency) 9,025,000 100.000% 9,025,000 Total Direct Debt 9,293,586
Total Overlapping Debt 97,644,331
Total Combined Debt $ 106,937,917
Ratio to Assessed Valuation:

Direct Debt 0.12%
Total Direct and Overlapping Tax and Assessment Debt 1.32% Total Direct Debt 0.14%
Combined Total Debt 1.63%
Ratio to Redevelopment Successor Agency Incremental Valuation:

Total Overlapping Tax Increment Debt 1.06%
Note:

Data Source:

California Municipal Statistics
Net Debt
Outstanding
Percentage
Applicable to the
City1
Amount Applicable
to the City
1 - The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value.

Attachment 1

City of El Paso de Robles

LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18
Debt limit $ 149,125,427 $ 157,236,234 $ 165,944,144 $ 175,257,600 Total debt applicable to limit 30,748,806 28,414,467 25,644,300 25,592,448 Legal debt margin $ 118,376,621 $ 128,821,767 $ 140,299,844 $ 149,665,152

20.62% 18.07% 15.45% 14.60%
Data Source:

City of Paso Robles Financial Reports
Total net debt applicable to the limit as a
percentage of debt limit
Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2022-23
$ 185,996,808 $ 196,767,078 $ 205,984,535 $ 213,765,308 $ 246,098,987 $ 246,098,987 18,948,699 16,265,162 14,265,309 12,282,771 8,455,905 8,454,388 $ 167,048,109 $ 180,501,916 $ 191,719,226 $ 201,482,537 $ 237,643,082 $ 237,644,599

10.19% 8.27% 6.93% 5.75% 3.44% 3.44%
Legal Debt Margin Calculation for Fiscal Year 2023-24
Assessed value $ 6,562,639,642
Debt limit - 3.75% of total assessed value1 246,098,987 Amount of debt applicable to limit 8,454,388
Legal debt margin $ 237,644,599
Note:
1 - California Government Code Section 43605 establishes a legal debt limit of 15% of gross assessed valuation for municipalities. However, this provision was enacted when assessed valuation was established based on 25% of market value. Effective in fiscal year 1981-82, taxable property is assessed at 100% of market value. Although the debt limit provision has not been amended by the State since this change, the percentage has been proportionately modified to 3.75% for the purposes of this calculation for consistency with the original intent of the State's limit.

Attachment 1

City of El Paso de Robles

PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Fiscal Year Coverage
2014-15 $ 8,212,157 $ (5,660,957) $ 2,551,200 $ 466,725 5.47 $ - 2015-16 9,347,433 (5,370,378) 3,977,055 464,825 8.56 -
2016-17 10,792,290 (5,044,184) 5,748,106 3,174,633 1.81 - 2017-18 9,658,099 (5,780,889) 3,877,210 3,175,032 1.22 - 2018-19 10,029,524 (5,777,450) 4,252,074 3,180,032 1.34 - 2019-20 9,656,388 (5,445,678) 4,210,710 3,620,046 1.16 15,379,770 2020-21 9,680,581 (5,485,128) 4,195,453 3,614,049 1.16 17,121,936 2021-22 12,374,670 (5,133,998) 7,240,672 3,620,048 2.00 17,959,769 2022-23 13,379,936 (5,558,327) 7,821,609 3,625,048 2.16 17,827,033 2023-24 13,613,271 (6,634,240) 6,979,031 3,624,048 1.93 17,913,467 Notes:
1 - Service charges include developer connection fees.
2 - Operating expenses do not include interest, depreciation or amortization expenses.

Data Source:

City of Paso Robles Financial Reports
3 - Debt service payment includes Sewer Bonds, State Revolving Loan for treatment plant expansion and State Revolving Loan for tertiary treatment facilities.

Sewer Fund
Utility Service
Charges1
Operating
Expenses2
Net Available
Revenues Debt Service3
Utility Service
Charges1
Attachment 1

Coverage
$ - $ - $ - N/A
- - - N/A
- - - N/A
- - - N/A
- - - N/A
(11,235,705) 4,144,065 667,583 6.21
(12,417,131) 4,704,805 667,583 7.05
(12,133,925) 5,825,844 667,583 8.73
(13,456,339) 4,370,694 667,583 6.55
(13,075,391) 4,838,076 667,583 7.25
Water Fund
Operating
Expenses2
Net Available
Revenues Debt Service
Attachment 1

City of El Paso de Robles

PRINCIPAL EMPLOYERS
Current Fiscal Year and Nine Fiscal Years Ago
Employer Number of Employees Rank Percentage of Total
Paso Robles Joint Unified School District 869 1 4.51%
Firestone Walker, Inc. 286 2 1.48%
City of El Paso de Robles 274 3 1.42%
Walmart 231 4 1.20%
Allegretto Vineyard Resort 205 5 1.06%
Justin Vineyards & Winery LLC 200 6 1.04%
Trelleborg Sealing Solutions Tustin, Inc. 174 7 0.90%
Target 170 8 0.88%
Applied Technologies 162 9 0.84%
Albertson's Food Center #314 156 10 0.81%
Totals 2,727 14.14%
Total City Employment 19,272
* Data not available
Data Sources:
2 - Top Principal Employers were determined based on number of employees reported on City Business License forms.

Fiscal Year 2023-24
1 - 2023-24 Total City Employment was calculated based on 2023 Census Bureau population estimate of 31,134 and the 2018-2022 Census Bureau statistic for total percent of population age 16+ years in civilian labor force of 61.9%.

Attachment 1

Number of Employees Rank Percentage of Total
* * *
* * *
* * *
* * *
* * *
* * *
* * *
* * *
* * *
* * *
Fiscal Year 2014-15
Attachment 1

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Attachment 1

City of El Paso de Robles

DEMOGRAPHICS AND ECONOMIC STATISTICS
Last Ten Calendar Years
Calendar Year
2014 30,423 $ 843,021 $ 27,710 6.3% 35.2 85.2% 21.4%
2015 31,398 865,552 27,567 5.2% 35.1 84.0% 22.6%
2016 31,745 865,552 27,265 4.8% 36.0 83.8% 21.6%
2017 31,559 918,379 29,100 3.8% 35.4 85.2% 23.5%
2018 31,244 956,290 30,607 2.9% 36.8 84.2% 23.8%
2019 31,221 1,012,706 32,436 2.7% 38.4 84.2% 23.8%
2020 31,073 1,043,846 33,593 7.9% 38.7 85.7% 24.4%
2021 31,176 1,101,342 35,326 5.5% 39.0 88.1% 24.8%
2022 30,692 1,152,786 37,559 3.0% 38.4 88.1% 26.1%
2023 30,907 1,370,278 44,335 3.3% 39.5 88.8% 29.2%
Data Sources:
1 - Population: California State Department of Finance
2 - Unemployment Data: California Employment Development Department 3 - Income, Age and Education Data: US Census Bureau, most recent American Community Survey Percent of
Population (25+
year of age)
with Bachelor's
Population Degree
Personal
Income
(in thousands)
Per Capita
Personal
Income
County
Unemployment Rate Median Age
Percent of
Population (25+
years of age)
with High
School Degree
Attachment 1

City of El Paso de Robles
FULL-TIME EQUIVALENT1 GOVERNMENT EMPLOYEES BY FUND/DEPARTMENT Last Ten Fiscal Years2
Fund/Department 2014-15 2015-16 2016-17 2017-18
General Fund
City Manager's Office 10.00 11.00 7.84 7.56
Administrative Services 4.00 5.00 7.59 8.21
Police 46.00 49.50 50.29 53.04
Fire and Emergency Services 24.00 24.00 28.98 31.65
Public Works3 22.40 25.00 14.96 18.18
Community Services3 8.60 19.00 27.28 29.67
Community Development 11.47 12.00 11.62 11.10
Subtotal General Fund 126.47 145.50 148.56 159.41
Measure J-20 Fund
Police - - - -
Fire and Emergency Services - - - -
Public Works - - - -
Subtotal Measure J-20 Fund - - - -
Internal Service Funds4
Information Technology - - - -
Fleet and Equipment - - - -
Risk Management - - - -
Subtotal Internal Service Funds - - - -
Downtown Parking Fund - - - -
Landscape and Lighting District Fund 1.00 1.00 0.85 0.88 Water Fund 19.00 18.50 22.68 25.12
Wastewater Fund 22.00 23.00 29.79 29.90
Airport Fund 2.00 1.00 1.42 1.82
Solid Waste Fund - - - -
Recycled Water Fund - - - -
Citywide Total 170.47 189.00 203.30 217.13
Notes:

Data Source:

City of El Paso de Robles payroll records and budget reports. 1 - A full-time employee is scheduled to work 2,080 hours per year including vacation and sick leave (2,912 hours per year for shift firefighters).

Full-time equivalent is calculated by dividing total labor hours by 2,080 (or 2,912 for shift firefighters). 2 - Prior to Fiscal Year 2016-17, the City's payroll system did not track total labor hours. As such, the information provided is the authorized budgeted position for the fiscal year.
3 - Beginning in Fiscal Year 2016-17, the City reorganized the park and facility maintenance functions from Public Works Department to the Community Services Department.
4 - In Fiscal Year 2021-22, the City reorganized information technology, fleet and equipment and risk management to internal service funds. In previous years, these positions were included in their applicable General Fund department.

Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

8.71 7.91 9.92 4.51 5.64 6.13

8.56 7.49 7.34 8.61 9.14 9.03

53.23 54.71 54.92 59.78 60.49 60.18

36.98 43.94 47.22 42.45 35.63 34.00

18.64 19.16 17.70 16.25 23.63 28.69

29.16 26.90 26.13 25.45 28.77 32.62

11.97 13.27 13.89 15.59 16.98 16.47
167.25 173.38 177.12 172.64 180.28 187.12
- - 0.44 1.49 5.47 10.94
- - 0.90 5.34 14.32 17.66
- - 0.15 1.82 1.70 2.42
- - 1.49 8.65 21.49 31.02
- - - 4.59 5.02 4.77
- - - 2.34 2.83 3.24
- - - - 0.48 0.50
- - - 6.93 8.33 8.51
- 0.66 1.02 1.45 2.42 1.92

1.08 2.16 2.76 2.61 1.44 1.30

23.63 24.08 22.11 20.93 22.76 24.66

29.92 29.14 29.46 27.44 27.31 26.10

2.31 1.70 2.09 2.33 2.41 3.26
- - - - 0.17 1.02
- - - - - 0.67
224.19 231.12 236.05 242.98 266.61 285.58
Attachment 1

City of El Paso de Robles

OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2014-15 2015-16 2016-17 2017-18
Public safety
Police
Physical arrests 1,438 1,566 1,669 1,731
Parking violations 428 449 502 534
Traffic violations 1,839 2,613 2,705 2,442
Emergency services
Emergency responses 3,260 3,747 3,790 3,812
Fires extinguished 97 109 131 131
Inspections 626 416 489 756
Utilities
Water operations
New connections 50 65 54 22
Water main breaks 2 3 - 4
Average daily production1 5.59 4.43 4.70 5.34
Peak daily production1 7.50 8.45 8.67 9.42
Wastewater
Average daily sewage treatment1 2.70 2.70 2.60 2.40
Community services
Library services
Volumes in collection 68,678 79,003 67,138 60,899
Total volumes borrowed 234,730 276,938 253,644 243,572
Program Attendance N/A N/A N/A N/A
Door Count N/A N/A N/A N/A
Total Circulation N/A N/A N/A N/A
Recreation services
Athletic field permits issued 3,341 3,286 3,295 3,439
Activity admissions 25,218 35,127 37,382 48,300
Recreation programs
Number of programs N/A N/A 5,549.00 4,693
Number of program participants N/A N/A 64,467.00 58,391 Recreation programs
Athletic facilities- number of reservations N/A N/A 3,302.00 2,716 Recreation facilities- number of reservations N/A N/A 683.00 572 Number of reservation participants N/A N/A 259,296.00 249,385 Community development
Building permits issued 876 1,024 836 811
Building inspections conducted 3,543 3,907 3,131 3,064
Residential units constructed 39 153 65 244
Building commercial square footage N/A N/A N/A 105,000.00 Total Permit Valuation 33,682,000 60,561,000 45,238,000 85,944,000 Note 1: In millions of gallons
Data Source:

City of El Paso de Robles
Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
1,558 1,555 1,487 1,495 1,815 2,154
291 511 1,883 8,249 11,011 7,004
2,530 2,758 2,752 2,407 3,245 2,955
3,827 3,948 3,853 4,662 4,748 4,777
120 118 110 138 187 144
525 757 130 493 917 1,198
26 34 22 22 55 47
3 4 5 10 4 10

5.50 5.09 4.96 5.22 4.83 4.60

8.46 8.47 9.31 8.97 9.45 9.99

2.20 2.20 2.40 2.40 2.40 2.40
72,970 62,808 61,862 63,064 N/A 47,206
262,551 195,456 176,223 180,800 N/A 192,738
N/A 8,506 8,937 9,968 10,428 14,334
N/A 109,547 54,911 94,696 104,987 119,060
N/A 245,046 230,815 237,761 270,665 336,690

N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A
5,493 5,503 3,034 4,414 6,980 7,997
62,705 53,154 25,313 36,723 54,010 54,490
3,041 2,318 2,298 3,551 3,630 3,532
714 668 302 1,397 1,496 1,395
205,728 235,520 83,663 361,555 478,354 676,705
1,076 1,069 996 1,131 1,367 1,261
3,905 3,898 2,972 2,971 4,955 5,424
117 32 56 191 269 274
386,792 41,192 167,311 246,947 221,665 360,114
76,500,981 28,179,208 51,983,603 135,397,861 110,916,498 136,887,738 Attachment 1

City of El Paso de Robles

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2014-15 2015-16 2016-17 2017-18
General government
Personal computers 225 225 242 249
Public safety
Police stations 1 1 1 1
Patrol units1 14 14 14 14
Fire stations 2 2 2 2
Public works
Streets (in miles) 173.5 173.5 N/A N/A
Streets (in lane miles) N/A N/A 329.40 N/A
Streets (in center line miles, including alleys) N/A N/A N/A 160.00 Traffic signals 26 26 27 27
Bridges 4 4 4 4
Airports 1 1 1 1
Water
Fire hydrants 1,849 1,852 1,856 1,868
Storage tanks 4 4 4 4
Storage capacity (in millions of gallons) 12 12 12 12
Water mains (in miles) 174 175 175 175
Wastewater
Sanitary sewer (in miles) 140 140 140 140
Storm sewer (in miles) 15 15 15 15
Treatment capacity (in millions of gallons) 5 5 5 5
Community services
Park acreage 101 101 101 101
Pools 4 4 4 4
Playgrounds 11 11 11 12
Baseball/softball fields 11 11 11 11
Soccer/football fields 6 6 6 6
Community centers 2 2 2 2
Notes:

Data Source:

City of El Paso de Robles
1 - In FY 2020-21, total patrol units includes all vehicles capable of being used for patrol purposes. In year's past, only "black and white" patrol units and detective vehicles were counted.

Attachment 1

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
251 264 269 272 272 297
1 1 1 1 1 1
15 15 18 26 30 43
2 2 2 2 2 3

N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A
202.8 202.8 202.8 202.8 202.8 202.8
28 28 28 28 28 28
4 4 4 4 4 4
1 1 1 1 1 1
1,876 1,897 1,902 1,910 1,914 1,920
4 4 4 4 4 4
12 12 12 12 12 12
178 178 178 178 178 180
126 126 126 126 127 127
15 15 15 15 15 15
5 5 5 5 5 5
101 101 101 101 101 101
4 4 4 4 4 4
12 12 12 12 12 12
11 11 11 11 11 11
6 6 6 6 6 6
2 2 2 2 2 2
Attachment 1

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Attachment 1

Council Agenda Report
From: Ryan Cornell, Administrative Services Director/City Treasurer Subject: Second Reading and Adoption of Ordinance No. 1155 of the City Council of the City of Paso Robles, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2022-2N (Olsen/South Chandler Ranch – Services), Levying and Apportioning CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: February 4, 2025
Facts

1. The Mello-Roos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311 (the “Act”) permits public agencies, including cities, to establish a Community Facilities District (“CFD”), and to annex property thereto, which allows for financing the construction of public infrastructure and certain services.

2. CFDs impose a special tax on property owners within the CFD boundary through an annual special tax levy collected on the property tax bill. This financing mechanism allows new development to pay for public infrastructure and public service needs over time. Because the CFD special tax is added to the existing standard ad valorem property tax bill, it creates an additional tax to be paid by homeowners within CFD boundaries as opposed to those properties not located in CFD boundaries.

3. In August 2022, the City formed the City of Paso Robles Community Facilities District No. 2022-2N (Olsen/South Chandler Ranch – Services) (the “District”) for the purpose of providing certain public services in the District.

4. As a condition to development, Vindeo II, LLC (“Owner”), the owner of certain real property located in the City (the “Property”), has agreed to annex said Property into the District.

5. On November 5, 2024, City Council approved Resolution No. 24-120, declaring the intention to annex territory to CFD No. 2022-2N and approving the map of the area proposed to be annexed thereto.

6. On December 17, 2024, City Council approved Resolution 24-149 and 24-150, which, amongst other things, approved calling a special election, conducting a special election, and declaring the election results.

7. On December 17, 2024, following the special election, City Council introduced for first reading by title only Ordinance No. 1155, levying and apportioning special taxes in the territory annexed into the CFD No. 2022-2N.

Options

1. Take no action;

2. Adopt Ordinance No. 1155, levying and apportioning special taxes in the territory annexed into the Community Facilities District No. 2022-2N.; or

3. Refer back to staff for additional analysis.

Analysis and Conclusions
At the City Council meeting on November 5, 2024, the City Council initiated proceedings to annex territory to the District, known as Annexation No. 1. On December 17, 2024, City Council approved calling a special election, conducting a special election, and declaring the election results as well as introduced for first reading Ordinance No. 1155, levying and apportioning special taxes in the territory annexed into the CFD No. 2022-2N. There have been no changes to the ordinances since first reading.

Fiscal Impact
Properties within the District, including the Property if it is annexed, are subject to the proposed special tax to be collected by the County in the same manner as ad valorem property taxes, as shown in the Rate and Method of Apportionment of Special Tax attached to the Resolution. There is no termination on the special tax and no ability to prepay.

The special tax is anticipated to cover the incremental costs of providing the services described above as a result of the new development in the District and the territory to be annexed thereto. This will prevent the reduction in service to existing residents and property owners of the City.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation (Option 2)
Approve the second reading by title only and adopt Ordinance 1155 of the City Council of Paso Robles, acting in its capacity as the legislative body of Community Facilities District No. 2022-2N (Olsen/South Chandler Ranch – Services), levying and apportioning special tax liens in territory annexed into said community facilities district.

Attachments

1. Ordinance 1155 – Annexation No. 1 to Paso Robles CFD No. 2022-2N

Attachment 1
ORDINANCE 1155 N.S.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF PASO ROBLES COMMUNITY FACILITIES DISTRICT NO. 2022-2N (OLSEN/SOUTH CHANDLER RANCH - SERVICES), COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA,

AUTHORIZING THE LEVY OF SPECIAL TAXES IN SAID COMMUNITY FACILITIES DISTRICT, INCLUDING CERTAIN ANNEXATION TERRITORY IDENTIFIED AS ANNEXATION NO. 1 WHEREAS, the City Council (the “City Council”) of the City of El Paso de Robles (the “City”) has established the City of Paso Robles Community Facilities District No. 2022-2N (Olsen/South Chandler Ranch - Services) (the “District”) for the purpose of levying special taxes on parcels of taxable property therein for providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and
WHEREAS, the City has conducted proceedings to annex territory into the District and, with respect to the proceedings, following an election of the qualified electors in the territory proposed for annexation (the “Annexation Territory”) known as Annexation No. 1, the City Council, on December 17, 2024, adopted a resolution which declared the results of the special election and determined that the territory proposed to be annexed is added to and part of the District.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The above recitals are true and correct. This City Council does, by the passage of this ordinance, authorize the levy of special taxes on taxable properties located in the District, including the Annexation Territory, pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”) and pursuant to the Rate and Method of Apportionment as set forth in Appendix “A” attached hereto and incorporated herein by this reference (the “Rate and Method”).

Section 2. This City Council, acting as the legislative body of the District, is hereby further authorized to annually determine, by resolution, the special tax to be levied within the District, including the Annexation Territory, for the current tax year and all future tax years; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method. The special tax has previously been levied in the original territory of the District pursuant to Ordinance No. 1121 passed and adopted by the City Council on August 16, 2022, and the special tax is hereby levied in the District, including the Annexation Territory, in this fiscal year and each fiscal year hereafter to pay for the services for the District and the costs of administering the District
Section 3. The special taxes herein authorized to be levied, to the extent possible, shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations.