investigations will be on file at the Wastewater Division office when completed. A decision tree informing CCTV reinspection after initial inspection is provided below in Figure 4-2:
Figure 4-2 CCTV Grades above based on NASSCO defect ranking codes
4.3.2 Line Cleaning
The City implements a seven (7) year schedule to clean the entire system. Staff is dedicated to cleaning the system 2 days per week and documents line cleaning conditions on a Routine Sewer Line Cleaning and Manhole Inspection form.
The City evaluates the frequency at which the entire system is cleaned based on the results of sewer line cleaning logs, sewer spill history and the results of CCTV data. Changes in sewer line cleaning and prioritization of sewer repairs based on sewer line cleaning observations follow the following protocol in Figure 4-3 belowl:
Sewer System Management Plan – Revision 02
Element 4 – Operation and Maintenance Program
City of Salinas
May 2025
Figure 4-3: Sewer Line Cleaning Flow Chart
4.3.3 Manhole Inspection
City manholes are inspected in conjunction with routine sewer line cleaning activities and as part of the High Priority List inspections. The City utilizes the Manhole Inspection Form for routine documentation of manhole conditions. When significant issues are observed during these routine manhole inspections, a more detailed inspection and assessment is conducted by maintenance staff. Relevant information from these sheets is maintained in the City CMMS for consideration in future rehabilitation and/or CIP.
Sewer System Management Plan – Revision 02
Element 4 – Operation and Maintenance Program
City of Salinas
May 2025
4.3.4 High Priority Areas
The Departments goal is to service high priority problem areas 3 days of each week. The City’s Wastewater Supervisor maintains “high priority” lists of problem areas needing additional maintenance and cleaning. This list, developed over several years, identifies problem locations for blockages that may potentially lead to overflows. This list was developed and is based on the required frequency of maintenance to avoid blockages. Currently, monthly and quarterly high priority maintenance lists are maintained. These lists are based on sewer spill data and staff field observations. These lists have been effective to minimize sanitary sewer spills. The locations on both lists are grouped by area – East Salinas, West Salinas, North Salinas and South Salinas. The current lists provided are for example purposes only as they are dynamic and revised as needed. The lists show specific locations to be serviced, and the length of pipe.
These documents are maintained at the Wastewater Division office. The current High Priority Lists are provided in Appendix 4A.
4.3.5 Lift Station Operation and Maintenance
As previously mentioned in the introduction to this SSMP Element, the City operates ten (10) City-owned lift stations, and one (1) City maintained lift station within the City service area.
Stations are provided with duplex and triplex pumping systems depending on the size of the station for redundancy and reliability. This redundant system allows for continued operation of a lift station in the event of pump failure. Several of the City’s lift stations have backup generator power. In addition, the City maintains 5 portable (towable) diesel powered generators to provide emergency power to those stations not equipped with permanent on-site electrical generators.
This gives effective coverage of all sanitary lift stations and reduces the potential for overflows during power outages. To ensure redundancy in the system, City lift stations are equipped with receptacles for mobile generator hookups in the unlikely event of a permanent generator failure.
Stations are monitored remotely through a SCADA system which contacts “on-call” staff in the event of an emergency. Operational parameters and alarms for each station can be adjusted manually as necessary. Technical Information for these lift stations is included in the City’s Lift Station Spill Emergency Response Plans on file at the City’s Wastewater Division office.
The four (4) highest flow sewer lift stations (Carpenter Hall, Lake Street, Santa Rita, and TP2) are inspected daily. All other sewer lift stations are inspected weekly. The City has a pump maintenance mechanic logbook to identify maintenance activity at the sewer lift stations and also keeps records on a laptop for use in the field. Routine maintenance includes but is not limited to:
o inspection of electrical panels,
o pump and level controls,
o air compressors,
o wet well and dry well conditions, and
o pump motor operation.
Site visits for maintenance activities are logged in the Lift Station Log kept on file at the City’s Wastewater Division office. In the absence of the pump mechanic other maintenance personnel are cross trained to address any lift station problems.
Air relief valves, vacuum relief valves and bridge and aerial crossings of gravity and force main lines are visually inspected on a quarterly basis. The findings of these inspections and any necessary preventive maintenance are logged in the CMMS system.
Sewer System Management Plan – Revision 02
Element 4 – Operation and Maintenance Program
City of Salinas
May 2025
Table 4-2 lists City-owned and private lift stations that discharge to the City collection and conveyance system.
Table 4-2 Lift Stations
City Owned or Operated Lift Stations
Airport (Moffett) De La Torre Lake Street Mill Lake
Carpenter Hall Harkins Road Las Casitas Santa Rita
Spicer TP2
Private Lift Stations Discharging to City
Salinas Adult School 11 Harris Place 1121 Alamo Way Sherwood Hall 150 Sherwood Drive Natividad Hospital 58 Natividad Road Northridge Mall Oregon & Sanborn Street 115 San Juan Grade Road
Figure 4-2 identifies the locations of City and Private lift stations.
Sewer System Management Plan – Revision 02
Element 4 – Operation and Maintenance Program
City of Salinas
May 2025
Figure 4-2 Lift Station Locations
A summary of all City owned or maintained lift station and force main attributes is located in Appendix 4B.
4.3.6 Customer Requests/Complaints
The City utilizes Q-Alert reporting system a work order (Daily Sanitary Sewer Work Order) to document customer requests and complaints and to address routine work requests within the system. Staff investigates and completes associated sewer related tasks as appropriate and generates a work order based on the nature of the investigation. Completed Q-Alerts are electronically stored in a Q-Alert database. If staff investigations result in significant discoveries in the field (E.g. sewer line restriction or spill) relevant data is reported to the Wastewater Division Manager for follow-up.
Sewer System Management Plan – Revision 02
Element 4 – Operation and Maintenance Program
City of Salinas
May 2025
4.4 Training
Training programs include formal classroom, tailgate training and on-the-job training. Training is facilitated by both City staff and outside training workshops. On-the-job cross training is pursued to ensure staff has a proficient working knowledge of the sanitary sewer system and that critical tasks can be performed without interruption. Task proficiency is a requirement for all job positions and promotions. Operations and Maintenance (O&M) related training is conducted on an ongoing and as needed basis. O&M staff are initially trained in the proper operation and maintenance of all major new mobile equipment and facilities by the respective contractor or manufacturer. Written operation and maintenance manuals are used as resource material for equipment start-up training and new staff training. In addition to these resource materials, the City has developed the following Operations and Maintenance Standard Operating Procedures applicable to the wastewater collection and conveyance system:
o SOP -01 Annual Collection System Cleaning
o SOP-02 Sewer Line Cleaning & Safety Guides for Vac-Con Truck o SOP-03 Lift Stations
o SOP-08 Vac-Con 692 Hydro Truck
o SOP-11 Confined Space Written Program
o SOP-13 Generator Operation
o WATCH Traffic Control Manual
The City also conducts regular training in the following areas:
o The requirements of General Order WQ 2022-0103-DWQ;
o Spill Emergency Response Plan procedures and practice drills; o Estimation of spill volume and spill response/mitigation; and o Electronic CIWQS reporting procedures for staff submitting data.
Training records are maintained by the Wastewater Division Manager at the Public Works Office.
4.5 Equipment and Replacement Parts Inventory
Equipment and replacement parts inventories are provided as discussed below.
4.5.1 Critical Parts and Equipment
The City maintains an inventory of critical parts and equipment which are utilized for both routine and emergency operations. A critical parts and equipment list is maintained in the office of the Wastewater Division Manager. In the event of an emergency, local retailers and contractors are available to supply additional equipment and parts on short notice.
Sewer System Management Plan – Revision 02
Element 5 – Design and Performance Provisions
City of Salinas
May 2025
ELEMENT 5 - DESIGN AND PERFORMANCE PROVISIONS
The standards and specifications for new construction and repair of the existing sanitary sewer system described in this SSMP Element are utilized to ensure a high quality, well designed, and functioning sanitary sewer system.
5.1 Regulatory Requirements
WDR Order No. 2022-0103-DWQ Section D 5 states that the SSMP must identify:
(a) Updated design criteria, and construction standards and specifications, for the construction, installation, repair, and rehabilitation of existing and proposed system infrastructure components, including but not limited to pipelines, pump stations, and other system appurtenances. If existing design criteria and construction standards are deficient to address the necessary component - specific hydraulic capacity as specified in section 8 (System Evaluation, Capacity Assurance and Capital Improvements), the procedures must include component- specific evaluation of the design criteria.;
(b) Procedures, and standards for the inspection and testing of newly constructed, newly installed, repaired, and rehabilitated system pipelines, pumps, and other equipment and appurtenances
5.2 Design and Construction Standards and Specifications In 2008, the City adopted Standard Specifications, Design Standards and Standard Plans for sewer mains to provide minimum standards for the design, methods of construction, kinds and uses of materials, and the preparation of plans for construction, sewerage, road repair and facilities within the City service area.
Where any portion of such improvement is to be offered to the City for operation and/or maintenance, 2008 Design Standards include:
o Part I Standard Specifications, Section 71 Sewers
This section cover provides requirements for:
▪ acceptable materials,
▪ acceptable conditions for installation,
▪ repairs,
▪ fittings & joints,
▪ installation requirements,
▪ field inspection,
▪ field testing requirements,
▪ acceptable sizing for pipelines and manholes
▪ Lift Stations (Pumping Plant Equipment) are referenced in Section 74 and identified as utilizing State Standard Specifications. Staff reports that Lift Stations are designed by Licensed Professional Engineers to meet existing conditions in the field.
o Part II: Sanitary Sewer Design
Sewer System Management Plan – Revision 02
Element 5 – Design and Performance Provisions
City of Salinas
May 2025
▪ A. Design: provides direction on acceptable peak flow rates and slopes ▪ B. Depth of Sewers: provides direction on acceptable sewer depths for mains and laterals
▪ C. Connections to Sewers: provides direction on acceptable wye connections to sewer mains.
o Part III: Standard Plans
▪ Standard Plan 16: Trench Backfill and Surface Restoration ▪ Standard Plan 25: Type A & Type B Manholes
▪ Standard Plan 26: Type C Manhole (Shallow Type)
▪ Standard Plan 27: Manhole Frame and Cover
▪ Standard Plan 28: Manhole Frame and Cover Adjustment
▪ Standard Plan 29: Sewer Saddle Connection
▪ Standard Plan 30: Flushing Inlet Frame and Cover Flushing Inlet ▪ Standard Plan 31: Flushing Inlet
▪ Standard Plan 32: Sewer Lateral (VCP)
All work must be completed based on the above standards. Any alterations to this must be approved by the City Engineer.
The City 2008 Standard Specifications, Design Standards, and Standard Plans are located on the City Website: https://www.cityofsalinas.org/Your-Government/Departments/Public- Works/Development-Engineering
A hard copy of City Standard Specifications, Design Standards, and Standard Plans is also on file at City offices.
5.3 Inspection and Testing Procedures and Standards
Procedures and standards for the acceptance testing and inspection of new and repaired sewer mains are specified in:
o Part I Standard Specifications, Section 71 Sewers
This section cover provides requirements for:
▪ acceptable materials,
▪ acceptable conditions for installation,
▪ repairs,
▪ fittings & joints,
▪ installation requirements,
▪ field inspection,
▪ field testing requirements,
▪ acceptable sizing for pipelines and manholes
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
ELEMENT 6 - SPILL EMERGENCY RESPONSE PLAN
Sanitary Sewer Spills (Spills can occur due to unforeseen accidents, unusual equipment failures, or other events not controllable by the City. A Spill Emergency Response Plan is maintained by the City Wastewater Division for City maintenance personnel to use as guidance in responding to Spills. The Spill Emergency Response Plan defines procedures to:
▪ protect public health and the environment
▪ comply with local, state, and federal regulatory agency requirements ▪ protect City personnel, the wastewater collection system, and private and public properties
The Spill Emergency Response Plan (SERP) is summarized in this SSMP Element. The City has developed a comprehensive Spill Emergency Response Plan to address emergency response and follow activities for Spills experienced in the City’s collection and conveyance system located in on the City’s website: https://www.cityofsalinas.org/Your- Government/Find-a-Department/Public-Works/PW-Maintenance-Services/Environmental- Maintenance-Services/Sanitary-Sewer-Maintenance. The City also maintains a separate Emergency Response Plans for the individual lift stations. These response plans are kept on file at the City Wastewater Division Office.. These documents are the primary references for staff to use during all Spills.
6.1 Regulatory Requirements
WDR Order No. 2022-0103-DWQ Attachment D 6 states:
The Plan must include an up-to-date Spill Emergency Response Plan to ensure prompt detection and response to spills to reduce spill volumes and collect information for prevention of future spills. The Spill Emergency Response Plan must include procedures to:
a) Notify primary responders, appropriate local officials, and appropriate regulatory agencies of a spill in a timely manner;
b) Notify other potentially affected entities (for example, health agencies, water suppliers, etc.) of spills that potentially affect public health or reach waters of the State;
c) Comply with the notification, monitoring and reporting requirements of this General Order, State law and regulations, and applicable Regional Water Board Orders;
d) Ensure that appropriate staff and contractors implement the Spill Emergency Response Plan and are appropriately trained;
e) Address emergency system operations, traffic control and other necessary response activities;
f) Contain a spill and prevent/minimize discharge to waters of the State or any drainage conveyance system;
g) Minimize and remediate public health impacts and adverse impacts on beneficial uses of waters of the State;
h) Remove sewage from the drainage conveyance system;
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
i) Clean the spill area and drainage conveyance system in a manner that does not inadvertently impact beneficial uses in the receiving waters;
j) Implement technologies, practices, equipment, and interagency coordination to expedite spill containment and recovery;
k) Implement pre-planned coordination and collaboration with storm drain agencies and other utility agencies/departments prior, during, and after a spill event;
l) Conduct post-spill assessments of spill response activities;
m) Document and report spill events as required in this General Order; and
n) Annually, review and assess effectiveness of the Spill Emergency Response Plan, and update the Plan as needed.
6.2 Initial Spill Notification Procedures
If a member from the public witnesses a Spill, they contact City on call staff by way of the City office at (831) 758-7233 during normal business hours. Calls to the City after hours or on weekends and holidays are directed to the 911 and County Dispatch which contacts staff responsible for “on-call” duty.
6.2.1 The City Staff as the First Responder
If City staff are contacted during normal business hours Monday through Friday, excluding legal holidays, administrative staff at the City office, calls the Wastewater Crew Supervisor or the next available Wastewater Staff to investigate the situation utilizing the contact information found in the SERP. If City staff need assistance responding to the Spill, the first responder calls additional senior wastewater staff utilizing the contact information found in Table 6-1.
Table 6-1: Maintenance Staff Contact Information
Title Contact Number
Wastewater Division
Manager Gary Gabriel (831) 970-7629
Maintenance Staff / On Call
Responder
On Call Phone (831) 970-7634
Ray Lerma (Wastewater Crew
Supervisor)
(831) 970-8287
Matthew Bates (Wastewater Crew
Supervisor)
(831) 737-3010
Albert Aries (831) 208-4862
Robert Reyna (831) 970-7621
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
If City staff are contacted after normal business hours, on a holiday, or during the weekend, on-call maintenance staff are contacted by dialing the City office or 911. The call will be routed to County Dispatch who contacts the City on-call phone, and staff respond accordingly.
After normal operating hours, one member of the Wastewater staff is on-call as a primary on- call wastewater emergency responder.
Figure 6-1 illustrates the chain of command, which must be observed and followed when a Spill occurs.
Figure 6-1: Spill Response Chain of Command
6.3 Spill Response Program
The City SERP documents provide a comprehensive Emergency Response Program consisting of the following:
o Spill Detection and Notification
o Spill Response Procedures
o Spill Recovery and Cleanup
o Water Quality Monitoring/Sampling
o Private Property Spill Response Procedures
o Notification, Reporting and Record Keeping Requirements o Post Spill Debriefing
o Failure Analysis Investigation
After-hours
Contacts
Observer
Notifies City Office
(831) 758-7233
After Hours
Observer directed
to Call 911
Emergency Phone #
911
Wastewater Staff
Responds
On Call Staff is
contacted
Wastewater Staff
Mitigates Spill
Wastewater Manager
(831) 970-7629
Compile CIWQS
Data:
On Call Staff and
Wastewater Manager
Spill Notification & Reporting to
Appropriate Agencies
If additional
resources are
necessary
If no
additional
resources
are
necessary
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
o Spill Response Training (training records maintained at City office) o Spill Response Workbook
o Lift Station Emergency Response Procedures
6.4 Spill Notification and Reporting Procedures
This section of the SERP ensures proper notification and reporting of Spills, which occur in the City’s sanitary sewer system, to protect public and environmental health.
An overview of the notification and reporting process is listed in Table 6-1. This overview is not inclusive of all the notification and reporting requirements and procedures. The following section of this SSMP Element correspond to each Spill category for notifications and reporting that must be referenced and followed.
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
Spill Category 1:
Spills to Surface Waters and/or SW Conveyance System
Spill
Requirement Schedule Method
Notification
Within two (2) hours of the Enrollee’s knowledge of a
Category 1 spill of 1,000 gallons or greater, discharging or threatening to discharge to surface waters:
Notify the California Office of Emergency
Services and obtain a notification control
number.
California
Office of
Emergency
Services at:
(800) 852-
7550
Reporting
• Submit Draft Spill Report within three (3) business
days of the Enrollee’s knowledge of the spill;
• Submit Certified Spill Report within 15 calendar
days of the spill end date;
• Submit Technical Report within 45 calendar days after the spill end date for a Category 1 spill in which 50,000 gallons or greater discharged to surface waters; and
• Submit Amended Spill Report within 90 calendar days after the spill end date.
CIWQS
Spill Category 2:
Spills of 1,000 Gallons of Greater That Do Not Discharge to Surface Waters Spill
Requirement Schedule Method
Notification
Within two (2) hours of the Enrollee’s knowledge of a
Category 2 spill of 1,000 gallons or greater, discharging or threatening to discharge to waters of the State:
Notify California Office of Emergency Services and obtain a notification control number.
California Office
of Emergency
Services at:
(800) 852-7550
Reporting
• Submit Draft Spill Report within three (3) business
days of the Enrollee’s knowledge of the spill;
• Submit Certified Spill Report within 15 calendar
days of the spill end date; and
• Submit Amended Spill Report within 90 calendar
days after the spill end date.
CIWQS
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
Spill Category 3:
Spills of Equal or Greater than 50 Gallons and Less than 1,000 Gallons That Does Not Discharge to Surface Waters
Spill
Requirement Schedule Method
Notification
Not Applicable
Not Applicable
Reporting
• Submit monthly Certified Spill Report to the online
CIWQS Sanitary Sewer System Database within 30
calendars days after the end of the month in which
the spills occur; and
• Submit Amended Spill Reports within 90 calendar
days after the Certified Spill Report due date.
CIWQS
Spill Category 4:
Spills Less Than 50 Gallons That Do Not Discharge to Surface Waters Spill
Requirement Schedule Method
Notification
Not Applicable
Not Applicable
Reporting
• If, during any calendar month, Category 4 spills occur, certify monthly, the estimated total spill volume exiting the sanitary sewer system, and the total number of all
Category 4 spills into the online CIWQS Sanitary
Sewer System Database, within 30 days after the end
of the calendar month in which the spills occurred.
• Upload and certify a report, in an acceptable digital format, of all Category 4 spills to the online CIWQS
Sanitary Sewer System Database, by February 1st
after the end of the calendar year in which the spills
occur.
CIWQS
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
Enrollee Owned and/or Operated Lateral Spills That Do Not Discharge to Surface Waters Spill
Requirement Schedule Method
Notification
Within two (2) hours of the Enrollee’s knowledge of a spill of 1,000 gallons or greater, from an enrollee- owned and/or operated lateral, discharging or threatening to discharge to waters of the State:
Notify California Office of Emergency Services and
obtain a notification control number.
Not applicable to a spill of less than 1,000 gallons.
California
Office of
Emergency
Services at:
(800) 852-
7550
Reporting
• Upload and certify a report, in an acceptable digital format, of all lateral spills (that do not discharge to a surface water) to the online CIWQS Sanitary Sewer
System Database, by February 1st after the end of the
calendar year in which the spills occur.
• Report a lateral spill of any volume that discharges to a surface water as a Category 1 spill.
CIWQS
Table 6-1: Spill Notification and Reporting Overview
6.4.1 Spill Notification Procedure
Spill notification procedures vary based on whether the Spill is classified as a Category 1, Category 2, Category 3, Category 4 or Enrollee Owned Lateral and are included in the SERP:
Spill Notification section.
Notification of Spills of 1,000 Gallons or Greater to the California Office of Emergency Services
Per Water Code section 13271, for a spill that discharges in or on any waters of the State, or discharges or is deposited where it is, or probably will be, discharged in or on any waters of the State, the City shall notify the California Office of Emergency Services and obtain a California Office of Emergency Services Control Number as soon as possible but no later than two (2) hours after:
• The City has knowledge of the spill; and
• Notification can be provided without substantially impeding cleanup or other emergency measures.
The notification requirements in this section apply to individual spills of 1,000 gallons or greater, from an Enrollee-owned and/or operated laterals, to a water of the State.
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
Spill Notification Information
The Enrollee shall provide the following spill information to the California Office of Emergency Services before receiving a Control Number, as applicable:
• Name and phone number of the person notifying the California Office of Emergency Services;
• Estimated spill volume (gallons);
• Estimated spill rate from the system (gallons per minute); • Estimated discharge rate (gallons per minute) directly into waters of the State or indirectly into a drainage conveyance system; • Spill incident description:
o Brief narrative of the spill event, and
o Spill incident location (address, city, and zip code) and closest cross streets and/or landmarks;
• Name and phone number of contact person on-scene;
• Date and time the Enrollee was informed of the spill event; • Name of sanitary sewer system causing the spill;
• Spill cause or suspected cause (if known);
• Amount of spill contained;
• Name of receiving water body receiving or potentially receiving discharge; and
• Description of water body impact and/ or potential impact to beneficial uses.
Notification of Spill Report Updates
Following the initial notification to the California Office of Emergency Services and until such time that the Enrollee certifies the spill report in the online CIWQS Sanitary Sewer System Database, the Enrollee shall provide updates to the California Office of Emergency Services regarding substantial changes to:
• Estimated spill volume (increase or decrease in gallons initially estimated);
• Estimated discharge volume discharged directly into waters of the State or indirectly into a drainage conveyance system (increase or decrease in gallons initially estimated); and
• Additional impact(s) to the receiving water(s) and beneficial uses.
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
6.4.1.1 Category 1 Spills (Spills to Surface Waters)
Within two (2) hours of the City’s knowledge of a Category 1 spill of 1,000 gallons or greater, discharging or threatening to discharge to surface waters:
o Notify the California Office of Emergency Services and obtain a notification control number.
Table 6-2: Regulatory Agency Notification Information for a Spill to Surface Water
Regulatory Agency Contacts
California Office of
Emergency
Services (Cal OES)
Within two (2) hours of the City’s knowledge of a Category 1 spill of 1,000 gallons or greater, discharging or threatening to discharge to surface waters notify the California Office of Emergency Services and obtain a notification control number at (800) 852-7550.
Regional Water
Quality Control
Board (RWQCB)
Optional – If spill is over 1,000 gallons, reaches waterway, or occurred in area with likely public contact, call (805) 549-3147.
Monterey County
Environmental
Health
Optional- If spill reaches waterway, call (800) 253-2687. Give the spill information.
California
Department of Fish
and Wildlife
Optional -If spill reaches waterway, call State office (831) 649- 2870.
6.4.1.2 Category 2 Spills
(Spills of 1,000 Gallons or Greater That Do Not Discharge to Surface Waters) Within two (2) hours of the City’s knowledge of a Category 2 spill of 1,000 gallons or greater, discharging or threatening to discharge to waters of the State:
o Notify California Office of Emergency Services and obtain a notification control number.
6.4.1.3 Category 3 Spills
(Spills of Equal or Greater than 50 Gallons and Less than 1,000 Gallons That Does Not Discharge to Surface Waters)
o Not Applicable
6.4.1.4 Category 4 Spills
(Spills Less Than 50 Gallons That Do Not Discharge to Surface Waters) o Not Applicable
6.4.1.5 Enrollee Owned and or Operated Lateral Spills that do not Discharge to Surface Waters
Within two (2) hours of the City’s knowledge of a spill of 1,000 gallons or greater, from an enrollee- owned and/or operated lateral, discharging or threatening to discharge to waters of the State:
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
o Notify California Office of Emergency Services and obtain a notification control number.
o Not applicable to a spill of less than 1,000 gallons.
6.4.2 Spill Reporting Procedure
Spill reporting procedures vary based on whether the Spill is classified as Category 1, Category 2, Category 3, Category 4 or City Owned Lateral. A full description of Spill reporting requirements is found in the City SERP.
Category 1 Spills
• Submit Draft Spill Report within three (3) business days of the City’s knowledge of the spill;
• Submit Certified Spill Report within 15 calendar days of the spill end date; • Submit Technical Report within 45 calendar days after the spill end date for a Category 1 spill in which 50,000 gallons or greater discharged to surface waters; and • Submit Amended Spill Report within 90 calendar days after the spill end date.
Spill Technical Report
Category 2 Spills
• Submit Draft Spill Report within three (3) business days of the City’s knowledge of the spill;
• Submit Certified Spill Report within 15 calendar days of the spill end date; and • Submit Amended Spill Report within 90 calendar days after the spill end date.
Category 3 Spills
• Submit monthly Certified Spill Report to the online CIWQS Sanitary Sewer System Database within 30 calendars days after the end of the month in which the spills occur; and
• Submit Amended Spill Reports within 90 calendar days after the Certified Spill Report due date.
Category 4 Spills
• If, during any calendar month, Category 4 spills occur, certify monthly, the estimated total spill volume exiting the sanitary sewer system, and the total number of all Category 4 spills into the online CIWQS Sanitary Sewer System Database, within 30 days after the end of the calendar month in which the spills occurred.
Sewer System Management Plan – Revision 02
Element 6 – Overflow Emergency Response Plan
City of Salinas
May 2025
• Upload and certify a report, in an acceptable digital format, of all Category 4 spills to the online CIWQS Sanitary Sewer System Database, by February 1st after the end of the calendar year in which the spills occur.
Enrollee Owned and/or Operated Lateral Spills That Do Not Discharge to Surface Waters
• Upload and certify a report, in an acceptable digital format, of all lateral spills (that do not discharge to a surface water) to the online CIWQS Sanitary Sewer System Database, by February 1st after the end of the calendar year in which the spills occur. • Report a lateral spill of any volume that discharges to a surface water as a Category 1 spill.
6.5 SERP Training
The City implements a formal training program which includes annual training of City staff on this SSMP Element and SERP. The City also requires contractor personnel to train on and follow SERP through their contracts. The City maintains a log of SERP Training as training is completed.
6.6 Spill Impact Mitigation Program
The Spill Mitigation Program is comprised of the mitigation practices contained in the SERP, which is on file at the City Department of Public Works Wastewater Division Office.
The SERP includes Water Quality Monitoring, Beneficial Uses Identification and Spill Impact Mitigation section providing information to post water body warning and closure signs in the event that a spill reaches a surface water, and City Department of Public Works conducts water quality sampling for the spill impact assessment.
6.7 Spill Coordination with Stormwater Management Agencies and Public Water Systems
City Stormwater Compliance Division of Public Works manages the MS4 Stormwater Program which includes the entire City service area. Maps of the stormwater collection and conveyance system are available to City staff which allows them to isolate any areas impacted by a sewer spill, recover wastewater and return it to the sewer system. Municipal water system contacts are identified for notification of spills that may occur within 1000 ft of a surface water intake in the City SERP.
6.8 Post Spill Investigations
The City conducts Post Spill Investigations for Category 1, 2, and 3 spills as warranted.
Sewer System Management Plan – Revision 02
Element 7 – Fats, Oils and Grease Control Program
City of Salinas
May 2025
ELEMENT 7 – PIPE BLOCKAGE CONTROL PROGRAM
The City of Salinas has identified a significant number of commercial facilities that contribute fats, oils and grease (FOG) into the City’s sewer system. FOG has been a contributing factor in sanitary sewer spills and requires the City to conduct additional maintenance. Roots and disposable wipes have also been identified as pipe blocking sources.
7.1 Regulatory Requirements
WDR Order No. 2022-0103-DWQ Attachment D 7 states:
The Sewer System Management Plan must include procedures for the evaluation of the Enrollee’s service area to determine whether a sewer pipe blockage control program is needed to control fats, oils, grease, rags and debris. If the Enrollee determines that a program is not needed, the Enrollee shall provide justification in its Plan for why a program is not needed. The procedures must include, at minimum:
(a). An implementation plan and schedule for a public education outreach program that promotes proper disposal of pipe blocking substances; (b). A plan and schedule for the disposal of FOG generated within the sanitary sewer system service area. This may include a list of acceptable disposal facilities and/or additional facilities needed to adequately dispose of FOG generated within a sanitary sewer system service area;
(c). The legal authority to prohibit discharges to the system and identify measures to prevent spills and blockages;
(d). Requirements to install grease removal devices (such as traps or interceptors) and the development of design standards for such devices, maintenance requirements, BMP requirements, record keeping and reporting requirements; (e). Authority to inspect grease producing facilities, enforcement authorities, and whether the City has sufficient staff to inspect and enforce the FOG ordinance; (f). An identification of sewer system sections subject to FOG blockages and establishment of a cleaning maintenance schedule for each section; and Implementation of source control measures for all sources of fats, oils, and grease reaching the sanitary sewer system for each section identified above
7.2 Pipe Blockage Control Program Public Education and Outreach The City of Salinas currently has approximately 286.7.25 miles of sanitary sewer pipelines.
The service area includes a variety of residential, commercial and industrial facilities. The focus of an effective Pipe Blockage Control Program include s residential customers, commercial and industrial facilities and commercial and industrial food service/preparation facilities.
The City participates in the Southern Monterey Bay Dischargers Group (Group) partnering with Monterey One Water and other local agencies on a Pipe Blockage Control Program and continued participation in an effective public outreach program. The City of Salinas continues to utilize the Group to assist in developing a regional public education program for users of the system for the purpose of reducing FOG problems in the collection system.
Sewer System Management Plan – Revision 02
Element 7 – Fats, Oils and Grease Control Program
City of Salinas
May 2025
The education campaign typically includes newspaper ads (three in English, one in Spanish), radio ads on two local stations and theaters ads in a major Salinas movie outlet. The Southern Monterey Bay Discharges Group directed resources to a multi -agency web site which was completely updated in 2018 for fats, oils and grease information at https://www.clogbusters.org/ . The regional program is modified yearly as conditions warrant.
The City of Salinas continues to participate by funding approximately 52% of the costs for the regional grease source control education program. The City’s participation is critical to the regional effort as the program is prohibitively expensive for the other participants to finance the program independently.
In addition to the City’s Pipe Blockage Control Program outreach through ClogBusters, the City has independently developed outreach materials for other pipe blocking materials such as “disposable” wipes and any other consumer items that do not belong in the sewer through a flyer labeled “Toilets Are Not Trashcans”.
The City provides the following outreach and education materials that consist of the following:
o Residential and commercial outreach on proper Disposal of Wipes - “Toilets are not Trashcans” flyer,
o Residential Fats Oils and Grease Disposal outreach,
o Residential Door Hangers – FOG Program,
o Residential FOG Program - Lateral Graphic,
o Commercial FOG Program - Best Management Practices
o Commercial FOG Program - List of Licensed FOG Haulers Copies of educational outreach documents for food service establishments are posted and available on the City’s website https://www.cityofsalinas.org/Your-Government/Find-a- Department/Public-Works/PW-Maintenance-Services/Environmental-Maintenance- Services/Sanitary-Sewer-Maintenance. The City refers the appropriate businesses to the available information, to assist them with FOG compliance. .
7.3 FOG Disposal Facilities
The City does not own nor operate a FOG disposal facility; however, licensed FOG hauling contractors are identified as part of the City’s FOG Pipe Blockage Control Program, and the City provides a list of these licensed haulers to each food service establishment (FSE). Monterey One Water (M1W), located in Marina CA accepts hauled FOG for disposal.
A list of grease trap and interceptor vendors, pumping and waste hauling contractors in Monterey County that haul FOG to facilities such as M1W for disposal is available in the City’s Sanitary Sewer website link identified above and is also provided below:
Sewer System Management Plan – Revision 02
Element 7 – Fats, Oils and Grease Control Program
City of Salinas
May 2025
7.4 Discharge Prohibition Legal Authority and Spill Prevention Measures The City’s Source Control Program is run in cooperation with the Monterey One Water Source Control Program and relies heavily on Monterey One Water ordinances and requirements. The City’s current Municipal Code expressly incorporates all Monterey One Water regulations, including those related to requirements for grease and fats, source control and pretreatment requirements.
Monterey One Water’s authority for the Regional Grease Program is derived from Ordinance 2008-1. The City of Salinas City Code Chapter 36 expressly requires that all users within the City comply with all Monterey One Water regulations.
• Sec. 36-12.2. Compliance with discharge requirements of Monterey One Water. All dischargers into the sanitary sewer shall comply with all the discharge requirements of Monterey One Water. (Ord. No. 2102 (NCS).)
• Section 36-1 acknowledges that the City’s sanitary sewer collection system is tributary to the Monterey One Water treatment facility. It states that Monterey One Water implements a pretreatment program for its member jurisdictions (including the City of Salinas).
• Section 36-11 requires that all private sewage disposal systems conform with the City plumbing code currently in effect.
• Section 36-12 requires that a City permit be issued for all connection to or use of the public sanitary sewer system.
• Sections 36-12.1 and 36-12.2 state that final approval for a sanitary sewer permit is contingent upon compliance with the requirements of Monterey One Water and that all Grease Haulers in Monterey County
*Sites that accept FOG for disposal, recycling or rendering All Valley Environmental, Inc. (559) 498-8378
Ameriguard Maintenance Services (800) 347-7876 x 14
Bay Pumping (831) 422-6436
Greenline Liquid Waste Company (831) 422-2298
P.S.T.S (Peninsula Septic Tank Service) (831) 574-2958
Pioneer Liquid Transport (408) 287-5800
*Mahoney Environmental (800) 892-9392
*Monterey One Water (831) 424-1108
Sewer System Management Plan – Revision 02
Element 7 – Fats, Oils and Grease Control Program
City of Salinas
May 2025
dischargers into the sanitary sewer must comply with all discharge requirements of Monterey One Water.
• Section 36-16 requires that design and construction of building sewers conform to the requirements of the city plumbing code and the City Design Standards and Standard Specifications currently in effect at the time of installation. (Elsewhere in the City Code, the California Plumbing Code is adopted by reference.)
7.5 Requirements to Install Grease Removal Devices
The City’s Municipal Code expressly incorporates all Monterey One Water regulations, including those related to requirements for grease and fats, source control and pretreatment requirements. The City has adopted and incorporates the requirements of the California Uniform Plumbing Code. The City of Salinas City Code Chapter 36, Section 36-31 states:
Requires that grease traps (grease, oil, wax and sand interceptors) be provided when, in the opinion of the director, they are necessary for the proper handling of liquid wastes, sand or other harmful ingredients. All interceptors must be of a type and capacity approved by the director and located so as to be readily and easily accessible for cleaning and inspection. Failure by the owner to clean and maintain the interceptors is sufficient cause for punitive action as provided in the chapter, or for disconnection from the industrial sewer.
7.6 FOG Control Program Inspection, Enforcement, and Staffing The City of Salinas utilizes in-house inspection staff for food service facility inspection in conjunction with the City Storm Water Program. The Monterey County Department of Environmental Health is the designated authority as the City’s Health Officer, to inspect for any Health and Safety issues. Monterey One Water source control inspectors also have inspection authority for grease control equipment and wastewater related issues if necessary.
Both the City and Monterey One Water have inspection and enforcement authority regarding discharges to the sanitary sewer collection system. Authority to inspect is embedded in:
• Monterey One Water Ordinance No. 2008-01 - An Ordinance Establishing Regulations For The Interception, Treatment And Disposal Of Sewage And Wastewater; Providing For And Requiring Charges And Fees Therefore; And Fixing Penalties For The Violation Of Said Regulations
• Article 4 – discharge reports, wastewater discharge permits, notification, reporting requirements and administration.
• Section (§) 4.07 Inspection and Sampling – The Agency shall inspect the facilities of any user to ascertain whether the purpose of this Ordinance are being met and all requirements are being complied with. Persons or occupants of premises where wastewater is created or discharged shall allow the Agency's representative ready access at all reasonable times to all parts of the premises for the purposes of inspection or sampling or in the performance of any of their duties. The Agency shall have the right Sewer System Management Plan – Revision 02
Element 7 – Fats, Oils and Grease Control Program
City of Salinas
May 2025
to set up on the user's property such devices as are necessary to conduct sampling or metering operations. Where a user has security measures in force which would require proper identification and clearance before entry into their premises, the user shall make necessary arrangements with their security guards, that upon presentation of suitable identification, personnel from the Agency will be permitted to enter without delay for the purpose of performing their specific responsibilities.
7.7 Problem Area Identification and Sewer Cleaning
Locally, grease from both residential areas and food preparation facilities have been found to be contributing factors to grease related blockages in the sanitary sewer system. System blockages are generally attributable to issues of grease, roots or an accumulation of system solids and debris.
The City has a proactive maintenance program to meet the WDR requirement to identify sections of the sewer system subject to grease blockages and establish a cleaning maintenance schedule for these locations.
The Wastewater Division of the Maintenance Services Department performs daily maintenance activities to the system. The City has developed a proactive maintenance program with the goal of performing routine maintenance two days each week and priority locations three days each week. Priority, when required due to staffing shortage or availability of maintenance equipment, is given to servicing high priority locations over routine maintenance.
The “Sewer Maintenance High Priority List” referenced in Element 4 is the maintenance schedule that the City of Salinas Wastewater Division uses for ongoing maintenance of areas that have a history of blockages, buildup or overflows. The list is a dynamic document that changes as problems in some pipeline sections and other sections are identified for additional maintenance. The list consists of both monthly and quarterly maintenance locations to prevent the potential for sanitary sewer spills. The criteria for being on the list varies depending on the history of grease buildup, root intrusion, hydraulic deficiencies or other causes. Each location/pipe segment has been placed on a schedule of monthly or quarterly cleaning based on spill history or other system problems.
Other maintenance activities include routine maintenance to sewer lines, manhole inspections and system repairs when needed. The city also operates a pipeline inspection video truck to assist with identifying system problems.
7.8 Other Source Control Measures
The City’s source control efforts to reduce or eliminate pipe blocking materials and related problems in the pipeline sections identified in the ‘High Priority’ maintenance list are addressed through the actions previously described in this Element. Additionally, the City provides outreach and education to residential customers through the ClogBusters campaign and through the City website previously referenced in this Element. The education campaign typically includes newspaper ads, radio ads, and theaters ads in a major Salinas movie outlet.
The Southern Monterey Bay Discharges Group has directed resources to a multi-agency web site for pipe blocking material information at (https://www.clogbusters.org/). The regional program is modified yearly as conditions warrant. Additionally, the City has programs to Sewer System Management Plan – Revision 02
Element 7 – Fats, Oils and Grease Control Program
City of Salinas
May 2025
eliminate roots and an outreach program to encourage members of the public to keep other pipe clogging materials out of the sewer system.
Sewer System Management Plan – Revision 01
Element 8 – System Evaluation and Capacity Assurance Plan
City of Salinas
May 2025
ELEMENT 8 SYSTEM EVALUATION, CAPACITY ASSURANCE AND
CAPITAL IMPROVEMENT PLAN
8.1 Regulatory Requirements
Attachment D 8 states:
The Plan must include procedures and activities for:
• Routine evaluation and assessment of system conditions; • Capacity assessment and design criteria;
• Prioritization of corrective actions; and
• A capital improvement plan.
(a). System Evaluation & Condition Assessment: The Plan must include procedures to:
o Evaluate the sanitary sewer system assets utilizing the best practices and technologies available;
o Identify and justify the amount (percentage) of its system for its condition to be assessed each year;
o Prioritize the condition assessment of system areas that:
▪ Hold a high level of environmental consequences if vulnerable to collapse, failure, blockage, capacity issues, or other system deficiencies; ▪ Are located in or within the vicinity of surface waters, steep terrain, high groundwater elevations, and environmentally sensitive areas; o Are within the vicinity of a receiving water with a bacterial-related impairment on the most current Clean Water Act section 303(d) List;
o Assess the system conditions using visual observations, video surveillance and/or other comparable system inspection methods;
o Utilize observations/evidence of system conditions that may contribute to exiting of sewage from the system which can reasonably be expected to discharge into a water of the State;
o Maintain documents and recordkeeping of system evaluation and condition assessment inspections and activities; and
o Identify system assets vulnerable to direct and indirect impacts of climate change, including but not limited to: sea level rise; flooding and/or erosion due to increased storm volumes, frequency, and/or intensity; wildfires; and increased power disruptions.
Sewer System Management Plan – Revision 01
Element 8 – System Evaluation and Capacity Assurance Plan
City of Salinas
May 2025
(b). Capacity Assessment & Design Criteria: The Plan must include procedures to identify system components that are experiencing or contributing to spills caused by hydraulic deficiency and/or limited capacity, including procedures to identify the appropriate hydraulic capacity of key system elements for:
o Dry-weather peak flow conditions that cause or contributes to spill events; o The appropriate design storm(s) or wet weather events that causes or contributes to spill events;
o The capacity of key system components; and
o Identify the major sources that contribute to the peak flows associated with sewer spills.
o The capacity assessment must consider:
▪ Data from existing system condition assessments, system inspections, system audits, spill history, and other available information; ▪ Capacity of flood-prone systems subject to increased infiltration and inflow, under normal local and regional storm conditions;
▪ Capacity of systems subject to increased infiltration and inflow due to larger and/or higher-intensity storm events as a result of climate change; ▪ Increases of erosive forces in canyons and streams near underground and above- ground system components due to larger and/or higher-intensity storm events;
▪ Capacity of major system elements to accommodate dry weather peak flow conditions, and updated design storm and wet weather events; and ▪ Necessary redundancy in pumping and storage capacities. (c). Prioritization of Corrective Action: The findings of the condition assessments and capacity assessments must be used to prioritize corrective actions. Prioritization must consider the severity of the consequences of potential spills. (d). Capital Improvement Plan: The capital improvement plan must include the following items:
o Project schedules including completion dates for all portions of the capital improvement program;
o Internal and external project funding sources for each project; and o Joint coordination between operation and maintenance staff, and engineering staff/consultants during planning, design, and construction of capital improvement projects; and Interagency coordination with other impacted utility agencies.
8.2 System Evaluation & Condition Assessment
In 2023 the City completed the Sanitary Sewer Master Plan Update (SSMPU) was completed that included evaluation of the entire City sanitary sewer system. The condition assessment consisted of the following:
Sewer System Management Plan – Revision 01
Element 8 – System Evaluation and Capacity Assurance Plan
City of Salinas
May 2025
o Survey of manhole rim and invert elevations on each sewer manhole included in sewer model,
o Evaluations of the City’s eleven lift stations to establish signs of corrosion and recommendations based on structural investigation of the wet wells. Evaluation of the condition of piping and internal components, documentation of the size of the wet well/pumping station, approximate depth and size of inverts, perform a pump draw down test and determine approximate flow from each pump, full load amperage and Meg-ohm readings on each motor, verification of automation of controls, evaluation of the electrical system deficiencies/code violations, documentation of pumps and motors make/model number, inspection of pumps for signs of wear and tear including inspecting pump seals and fittings, electrical components for code violations, evaluation of pump seals, fittings, and overall condition, and pump tests to determine approximate flow, and measure amperage/power draws to check for signs of pump motor concerns. Evaluation of the system’s ability to meet existing and future demands based on the pumping capacity and lift station upgrade recommendations.
o Updates to the City’s GIS system to include new developments and upgrades to the City sewer system.
o City staff observations and recommendations for sewer system repairs. o The condition assessment includes CCTV data for approximately 5,300 linear feet (0.3%) of the City sewer system. The City is in the process of conducting CCTV inspections to have the entire system televised and assessed over the course of the next ten (10) years. Manhole inspections will be included as part of the CCTV investigations.
Capital improvement projects were identified as part of the condition assessment. These projects are identified in Section 8.5 of this Element.
The SSMPU is on the City website: https://www.cityofsalinas.org/Your- Government/Find-a-Department/Public-Works/PW-Maintenance- Services/Environmental-Maintenance-Services/Sanitary-Sewer-Maintenance
8.3 Capacity Evaluation & Design Criteria
The City’s collection system consists of 292 miles of gravity pipes, which vary in diameter from 6-inch to 54- inches, and eleven (11) lift stations, providing service throughout the City and a portion of Bolsa Knolls near Rogge Road. The main trunk sewer system was analyzed using the Innovyze InfoSWMM Version 14.7 hydraulic modeling program to evaluate performance of the wastewater collection system under both existing and future flow conditions.
Design criteria, as shown in Table 8-1 below, were applied in the analysis of the trunk sewer collection model. Gravity pipe performance was analyzed based on maximum percent full depth over diameter (d/D) ratio, defines as the depth of flow in a pipe divided by the diameter of the pipe.
Sewer System Management Plan – Revision 01
Element 8 – System Evaluation and Capacity Assurance Plan
City of Salinas
May 2025
Table 8-1: Hydraulic Criteria for Existing Systems
Standard Criteria
Velocity
Minimum: 2.0 ft/s for peak flows; 1.75 ft/s at
average
rate of flow
Maximum: 8.0 ft/sec
Minimum
Slope
6-inch: 1.0%
8-inch: 0.40%
10-inch: 0.26%
12-inch & above: 0.20%
Friction
Factor
Manning’s n (gravity)=0.013 for Vitrified Clay Pipe
(VCP)
0.011 for Polyvinyl Chloride (PVC)
Hazen-Williams C (pressure)=100 to 120 depending
on pipe size, material, and age
Minimum
Pipe Size 8-inch
Maximum
Allowable
Flow Depth
10-inch or less: d/D=0.67
12-inch to 24-inch: d/D=0.80
27-inch or greater: d/D=0.90
Surcharging Allowed as long as the Hydraulic Grade Line (HGL) remains at least 5-Feet Below the rim elevation
Forcemain
Hydraulics
Minimum: 2.0 ft/s
Maximum: 5.0 ft/s
Where improvements were recommended to the collection system, worst case d/D values were provided for reference. These d/D values represent a snapshot of the system under either;
o existing conditions, or
o proposed conditions with all improvements in place.
Through the digital sewer model, maximum d/D was analyzed for the system as a whole, ensuring that recommended updates did not trigger additional downstream or upstream improvements.
Inline flow monitoring was completed to capture dry and wet weather hydraulic conditions and evaluate hydraulic conditions through projected City build out.
Sewer System Management Plan – Revision 01
Element 8 – System Evaluation and Capacity Assurance Plan
City of Salinas
May 2025
Capital improvement projects were identified as part of this hydraulic evaluation for existing and future conditions. Projects are included in Section 8.5 of this Element.
8.4 Prioritization of Corrective Actions
The SSMPU identified capital improvement projects which included staff O&M based projects, hydraulic deficient projects, lift station improvement projects and CCTV data.
The City prioritized these projects based on the following criteria:
o Overflow to Waters of the State
o Ability to meet Design Criteria
o O&M Hot Spots
o Community Impacts
o Surcharge
Each of these categories was provided a weighted importance factor and each project received an overall ranking score. The importance factor was multiplied by the overall score of the project and then these two (2) factors were added together for a final score/ranking. The City reviews these projects to assess if rankings require adjustment regularly.
Lift Station CIP Ranking
Lift Station CIPs have been categorized in two separate ways: one based on improvements needed at each lift station as a whole and the other based on improvement project type for all lift stations.
Appendix 8A, Table 7-3 ranks each individual lift station based on eight categories:
o overflow to a water body,
o inspection frequency,
o existing pumping capacity deficiencies,
o peak hour emergency response time,
o if bypassing capabilities are needed,
o if an onsite generator with automatic transfer switch is needed, o if control system upgrades are needed, and
o potential impact to the community.
Although not included in the scoring, Table 7-3 also shows if the lift station would be impacted by future development.
Sewer System Management Plan – Revision 01
Element 8 – System Evaluation and Capacity Assurance Plan
City of Salinas
May 2025
Hydraulic and Maintenance Repair CIP Ranking
Appendix 8B, Table 7-2 ranks each sewer pipeline project based on the type of project (Hydraulic Deficiency or O&M Project) and five (5) ranking criteria:
o Overflow to Water Body of the State (0-10 Points)
o Meets Design Standards (0 – 10 Points)
o Maintenance Hot Spot (0-10 Points)
o Community Impact/Population (0-10 Points)
o Surcharge Near City Manhole Monitor (0-5 Points)
o Impacted by Future Development (also considered but no points were assigned)
8.5 Capital Improvement Plan
The City developed a ranked Capital Improvement List which is included in Appendix 8C.
There are two (2) tables that identify Pipeline/Manhole CIP (Table 7-4 & 7-6) and one (1) table that identifies Lift Station CIP (Table 7-5).
Funding for Projects and Future Investigations
The City recently completed a revenue rate study and is planning to move forward with Proposition 218 rate increase for all sewer users. This revenue plan would provide for the following:
o $2 million per year for sewer system repairs
o $1.1 million per year for ongoing CCTV investigations o $154K per year for manhole inspections
The City is also in the process of completing projects funded by the American Rescue Plan Act (ARPA) which has a deadline for spending December 31, 2026.
Operations and Maintenance staff work with Engineering staff to develop and rank Capital Projects.
The status of these projects is shown in Appendix 8D with current and anticipated sources of funding. Full project descriptions are provided in the 2023 SSMPU.
In addition to the funding sources identified in Appendix 8D, grant programs from the EDA Public Works and Economic Development Program, the State Water Resources Control Board, and others are the preferred sources for additional funding for sewer upgrades. If grant funding proves to be unavailable other potential funding options may also include:
• User rates
• Connection fees
Sewer System Management Plan – Revision 01
Element 8 – System Evaluation and Capacity Assurance Plan
City of Salinas
May 2025
• Municipal bonds
• Special assessment districts
• Public/private partnerships
• California Infrastructure and Economic Development Bank: infrastructure state revolving fund program; industrial development bonds
• California State loans and grants: State Revolving Fund (SRF); direct state appropriations
• Federal grants and loans: EDA Public Works and Economic Development Program; direct federal appropriations
The City continues to evaluate additional sources of funding for Capital Projects and will amend project information pertaining to schedules and sources of funding included in Appendix 8D.
8.6 Additional WDR Requirements
The City plans to conduct a Vulnerability Assessment to address the following WDR requirements:
o Prioritize the condition assessment of system areas that:
▪ Hold a high level of environmental consequences if vulnerable to collapse, failure, blockage, capacity issues, or other system deficiencies; ▪ Are located in or within the vicinity of surface waters, steep terrain, high groundwater elevations, and environmentally sensitive areas; o Are within the vicinity of a receiving water with a bacterial-related impairment on the most current Clean Water Act section 303(d) List;
o Assess the system conditions using visual observations, video surveillance and/or other comparable system inspection methods;
o Utilize observations/evidence of system conditions that may contribute to exiting of sewage from the system which can reasonably be expected to discharge into a water of the State;
o Identify system assets vulnerable to direct and indirect impacts of climate change, including but not limited to: sea level rise; flooding and/or erosion due to increased storm volumes, frequency, and/or intensity; wildfires; and increased power disruptions. o Outline how capacity assessment considers:
▪ Data from existing system condition assessments, system inspections, system audits, spill history, and other available information; ▪ Capacity of flood-prone systems subject to increased infiltration and inflow, under normal local and regional storm conditions;
▪ Capacity of systems subject to increased infiltration and inflow due to larger and/or higher-intensity storm events as a result of climate change; ▪ Increases of erosive forces in canyons and streams near underground and above- ground system components due to larger and/or higher-intensity storm events;
Sewer System Management Plan – Revision 01
Element 8 – System Evaluation and Capacity Assurance Plan
City of Salinas
May 2025
o Capital Improvement Plan that includes:
▪ Project schedules including completion dates for all portions of the capital improvement program;
▪ Internal and external project funding sources for each project; and ▪ Joint coordination between operation and maintenance staff, and engineering staff/consultants during planning, design, and construction of capital improvement projects; and Interagency coordination with other impacted utility agencies.
The Vulnerability Assessment is planned for completion by 2027. Capital Projects associated with this Vulnerability Assessment will be incorporated into the Capital Projects list included in Appendix 8.
Sewer System Management Plan – Revision 02
Element 9 – Monitoring, Measurement, and Program Modifications
City of Salinas
May 2025
ELEMENT 9 - MONITORING, MEASUREMENT & PROGRAM MODIFICATIONS The City monitors the implementation of the SSMP elements in order to measure the effectiveness of the City’s SSMP in reducing sewer spills. The manner in which each SSMP element is monitored and evaluated and the schedule with which the City completes this monitoring and evaluation is described in this SSMP Element.
9.1 Regulatory Requirements
WDR Order No. 2022-0103-DWQ Section D 9 states:
The Plan must include an Adaptive Management section that addresses Plan- implementation effectiveness and the steps for necessary Plan improvement, including:
(a). Maintaining relevant information, including audit findings, to establish and prioritize appropriate Plan activities;
(b). Monitoring the implementation and measuring the effectiveness of each Plan Element;
(c). Assess the success of the preventative maintenance activities; (d). Updating Plan procedures and activities, as appropriate, based on results of monitoring and performance evaluations; and
(e). Identifying and illustrating spill trends, including spill frequency, locations and estimated volumes.
9.2 Data Management
The City manages, schedules, and tracks preventative maintenance activities through GIS based Computerized Maintenance and Management System. The system covers the following:
o Sewer Line Cleaning
o High Priority Area Cleaning and Inspections
o Manhole Inspections and Maintenance
o Lift Station Inspection and Maintenance
o Customer Complaints
o Work Orders
o CCTV Inspections
o FOG Inspections
Triennial SSMP Audit Reports are maintained at the City’s Wastewater Division office.
Corrective actions from audit reports are generally addressed in updates of the City’s SSMP.
More immediate actions are completed in accordance with the recommended corrective action schedule in each triennial audit.
9.3 Establishing and Prioritizing SSMP Activities
Table 9-1 outlines the relevant information maintained by the City to establish and prioritize appropriate sewer collection system activities and the City staff who are responsible for monitoring implementation and measuring the effectiveness of each element, when appropriate.
Sewer System Management Plan – Revision 02
Element 9 – Monitoring, Measurement, and Program Modifications
City of Salinas
May 2025
Table 9-1: SSMP Implementation Management
SSMP Element SSMP Relevant Information Responsible Party
1. Goal This SSMP Element contains the City’s goals for the operation, maintenance, and management of
the sanitary sewer collection system, which
provide focus to reduce Spills and mitigate Spills
that do occur.
Wastewater Division
Manager
2. Organization A table containing names, job titles, roles, responsibilities, and contact information is
contained in this SSMP Element, which identifies
the most knowledgeable person for each aspect
of the SSMP Program. An organizational chart
identifies the lines of authority.
Wastewater Division
Manager
3. Legal Authority Web links in this SSMP Element contain the sections of City Policies and Ordinances
governing the sewer collection and conveyance
system.
Wastewater Division
Manager and City Legal
Counsel
4. Operation and
Maintenance
Program
Information in this SSMP Element document the
sanitary sewer system operation and maintenance
activities.
Wastewater Division
Manager
5. Design and
Performance
Provisions
City website links in this SSMP Element include
City Design Standards and Specifications that
include Testing requirements.
Wastewater Division
Manager and Engineering
Staff
6. Spill Emergency
Response Plan
The City updated a Spill Emergency Response
Plan in 2023 which include staff contact
information, mandatory Spill reporting information,
and response and mitigation programs.
Wastewater Division
Manager
7. Pipe Blockage
Control Program
Monitor any changes in the program that may
require updates to this Element..
Wastewater Division
Manager
8. System Evaluation,
Capacity
Assurance, and
Capital
Improvements Plan
The City will review and update this SSMP
Element as applicable to update project
schedules, status of projects and sources of
funding for associated projects.
Wastewater Division
Manager and Engineering
Staff
9. Monitoring,
Measurement, and
Program
Modifications
This SSMP Element will be updated annually with
the data in Tables 9-2 and 9-3 in a calendar year.
Wastewater Division
Manager
10. SSMP Program
Audits
SSMP Audit Reports are required triennially.
Corrective actions are implemented and tracked.
Wastewater Division
Manager
11. Communication
Program
Examples of public outreach materials and
pertinent City website links provided, as well as
meeting agendas, pertinent City Council reports
and minutes are found on the City’s website and
City offices.
Wastewater Division
Manager
Sewer System Management Plan – Revision 02
Element 9 – Monitoring, Measurement, and Program Modifications
City of Salinas
May 2025
9.4 Preventative Maintenance Program Assessment
The City’s Preventative Maintenance Program includes CCTV inspection, line cleaning, visual manhole inspection, lift station maintenance, high priority area identification and maintenance.
The City will review these operation and maintenance practices annually and compare them with annual Spill records. A summary of the performance metrics identified in Table 9-2 will be developed annually.
Table 9-2: Sanitary System Performance Metrics for Monitoring and Measurement Performance Measure Source
System Statistics Total miles of gravity sewer Atlas Maps Total miles of pressure sewer Atlas Maps
Total number of manholes Atlas Maps
Total number of sewer lift stations Atlas Maps
Operations and
Maintenance
Linear feet of sewer line cleaned CMMS/GIS & Work
Order Requests or Staff
Field Notes
Linear feet of high priority lines cleaned CMMS/GIS & Work Order Requests or Staff
Field Notes
Number of blockages/backups not
resulting in sewer spill
CMMS/GIS & Work
Order Requests or Staff
Field Notes
Linear feet of CCTV CMMS/GIS & Work
Order Requests or Staff
Field Notes
Number of manholes inspected CMMS/GIS & Work
Order Requests or Staff
Field Notes
Lift station inspections CMMS/GIS & Work
Order Requests or Staff
Field Notes
FOG inspections. Number of inspections
and reinspection’s
CMMS/GIS & Work
Order Requests or Staff
Field Notes
Root control linear feet CMMS/GIS & Work
Order Requests or Staff
Field Notes
Measures Based on Number and percentage of dry weather vs. CIWQS Sewer System Management Plan – Revision 02
Element 9 – Monitoring, Measurement, and Program Modifications
City of Salinas
May 2025
Performance Measure Source
Sewer Spill Numbers wet weather spills
Number of spills by cause (operational,
capacity, system, other)
CIWQS
Number of spills per 100 miles per Year CIWQS
Total volume of spills CIWQS
Average spill volume CIWQS
Total volume recovered and percentage of
overall total Spill Volume
CIWQS
Net volume of spills (total minus
recovered) and percentage of overall total
spill volume
CIWQS
Total volume reaching storm drainage
channel and not recovered or reaching
surface waters and percentage of overall
total spill volume.
CIWQS
Spill Response Time Average response time during business hours
CIWQS
Average response time outside of
business hours.
CIWQS
Condition
Assessment,
Rehabilitation, and I/I
Control
Amount of CCTV inspection performed
(linear feet)
CCTV Reports
Number of manholes inspected CMMS/GIS & Work
Order Requests or Staff
Field Notes
Number of inflow sources detected and
corrected.
CMMS/GIS & Work
Order Requests or Staff
Field Notes
Capital Projects Summary of short- and long-term projects, sources of funding and status of each
project.
Capital Projects
Schedule
Outreach Pipe Blockage Control Program summary
of outreach efforts.
ClogBusters outreach
and City Outreach
Goals Summary of how goals are being met and
areas of improvement where goals have
not been achieved.
Element 1 Goals and
Supporting data to
demonstrate
performance.
Sewer System Management Plan – Revision 02
Element 9 – Monitoring, Measurement, and Program Modifications
City of Salinas
May 2025
Performance Measure Source
Training Summary of training to meet Element 4
training requirements and other City
training programs.
Training Records
9.5 SSMP Updates
The City will use the SSMP for management, training, planning and regular maintenance of the collection system. As the management plan is utilized, any deficiencies or discrepancies will be corrected. Program elements will be updated based on performance evaluations, organizational, operational, and maintenance changes, new regulatory requirements, repairs, replacements, and upgrades made to the collection system.
At a minimum, the City will review and revise the SSMP annually as warranted. The Wastewater Division Manager is responsible for revising and maintaining the SSMP.
A revision record will be maintained to track changes.
9.6 Sewer Spill Trends
The trends in City sewer spill history should be tracked for a three-year period utilizing the criteria in Table 9-3. The cause categories identified in Table 9-3 are the causes available for use in the Sewer Spill Report provided in California Integrated Water Quality System (CIWQS).
City Staff are responsible for determining which cause category is appropriate for each Spill when the Spill is reported in CIWQS.
Table 9-3 City of Salinas per Indicator per Year
Criteria Indicator
Spills No. of Spills
Multiple Spills at Same
Location # of Locations with Multiple Spills
Spill Volume (gal)
Volume
Volume Recovered
Volume Reached Surface Water
Spill Causes
Debris - Construction
Debris – General
Debris – Rags
Flow Exceeded Capacity
FOG
Sewer System Management Plan – Revision 02
Element 9 – Monitoring, Measurement, and Program Modifications
City of Salinas
May 2025
Criteria Indicator
Operator Error
Other
Pipe Structural Problem/Failure
Pump Station Failure
Rainfall Exceeded Design
Root Intrusion
Vandalism
Comparison with
Regional and State
Averages
Average Spill Volume
Average # of Spills
The City will continue to plan and adjust operation and maintenance practices so that the number of Spills experienced on an annual basis remains low.
Sewer System Management Plan – Revision 02
Element 10 – Sewer System Management Plan Program Audits
City of Salinas
May 2025
ELEMENT 10 - SEWER SYSTEM MANAGEMENT PLAN PROGRAM AUDITS SSMP audits are required to identify and correct deficiencies in the most current revision of the City’s SSMP and provide a schedule to correct identified deficiencies. This SSMP Element outlines the audit process and identifies staff responsible for conducting or participating in SSMP audits and generating the required SSMP Audit Report.
10.1 Regulatory Requirements
WDR Order No. 2022-0103-DWQ Section D 10 requires:
The Plan shall include internal audit procedures, appropriate to the size and performance of the system. Additionally, the General Order requires;
The internal audit shall be appropriately scaled to the size of the system(s) and the number of spills. The Enrollee’s sewer system operators must be involved in completing the audit. At minimum, the audit must:
o Evaluate the implementation and effectiveness of the Enrollee’s Sewer System Management Plan in preventing spills;
o Evaluate the Enrollee’s compliance with this General Order; o Identify Sewer System Management Plan deficiencies in addressing ongoing spills and discharges to waters of the State; and
o Identify necessary modifications to the Sewer System Management Plan to correct deficiencies.
The Enrollee shall submit a complete audit report that includes:
o Audit findings and recommended corrective actions;
o A statement that sewer system operators’ input on the audit findings has been considered; and
o A proposed schedule for the Enrollee to address the identified deficiencies.
10.2 SSMP Program Audits
The Wastewater Manager (LRO) or their designee is responsible for assuring the SSMP audit is conducted and complete based on the schedule outlined on the SWRCB lookup website which requires audits to be conducted at a three-year interval from the prior audit. Audits should be conducted with the cooperation of the City staff responsible for sewer system operations and maintenance, administrative staff, and engineering staff. When conducting the SSMP audit, City staff must evaluate the effectiveness of each SSMP Element. A comprehensive, effective review of the City’s SSMP must be documented in a SSMP Audit Report.
10.2.1 Summary of Procedure:
1. Gather appropriate documents using the SSMP Audit Data & Records Request, which is provided in Appendix 10A.
2. Interview City staff responsible for the administration, operations, maintenance and engineering associated with system performance information.
Sewer System Management Plan – Revision 02
Element 10 – Sewer System Management Plan Program Audits
City of Salinas
May 2025
3. Develop Audit Report and reference all documents reviewed and used as evidence of compliance with the WDR. Create a plan and schedule for updates to the SSMP based on changes in operational strategies or deficiencies found in the SSMP.
4. Evaluate the effectiveness of the City’s SSMP and compliance with each WDR requirement using the ranking methodology outlined in Table 10-1.
Table 10-1: SSMP Audit Ranking Criteria
Ranking Ranking Basis
In Compliance All requirements specified in the element are met.
Substantial Compliance The majority of requirements in the element are met.
Partial Compliance Half of the requirements in the element are met.
Marginal Compliance Less than half of the requirements in the element are met.
Out of Compliance None of the requirements in the element are met.
The SSMP Audit Report must be signed and certified by the Legally Responsible Official (LRO).
The SSMP Audit Report must be certified using the language provided below:
“I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations.”
Subsequent SSMP audits must be conducted continuously on a three-year interval following the schedule outlined below which is based on the dates required by the 2022 WDR:
• SSMP Audit Period: May 2, 2024 - May 2, 2027 (Audit report due 11/2/27) • SSMP Update: Update due 5/2/31.
Additional SSMP Audit and SSMP Update regulatory schedules required after the dates shown above should be identified in the following link:
https://www.waterboards.ca.gov/water_issues/programs/sso/lookup/ To assist in the audit process, the City should consider quarterly or semiannual reviews and revisions to specific SSMP Elements and associated supporting documents. These reviews and revisions will help ensure current operational practices and procedures are reflected in the Sewer System Management Plan – Revision 02
Element 10 – Sewer System Management Plan Program Audits
City of Salinas
May 2025
SSMP and documentation of these activities is readily available during an audit by the Regional Water Quality Control Board, and/or State Water Resources Control Board.
SSMP Audit Reports must be kept on file and submitted to the online CIWQS Sanitary Sewer Database within six (6) months after the end of the 3-year audit period.
Sewer System Management Plan – Revision 2
Element 11 – Communication Program
City of Salinas
May 2025
ELEMENT 11 - COMMUNICATION PROGRAM
Communicating the objectives of the SSMP and the importance of sanitary sewer system management practices to the public is essential. An informed public can assist and support the City by reducing customer caused blockages, which will potentially decrease ewer spills.
11.1 Regulatory Requirements
WDR Order No. 2022-0103-DWQ Section D 11 states:
The Plan must include procedures for the Enrollee to communicate with:
o The public for:
▪ Spills and discharges resulting in closures of public areas, or that enter a source of drinking water, and
▪ The development, implementation, and update of its Plan, including opportunities for public input to Plan implementation and updates.
o Owners/operators of systems that connect into the Enrollee’s system, including satellite systems, for:
▪ System operation, maintenance, and capital improvement-related activities.
11.2 Communication Program
The purpose of the City sanitary sewer system communication program is to educate stakeholders, which include residential and commercial users of the collection system, about the SSMP. Public awareness of different components of the SSMP is accomplished through different mediums and may reach different audiences. The following are activities that the City practices to increase awareness and education about the importance of having a properly constructed, maintained, and operated sewer collection system.
Table 11-1: City Communication Program Overview
Activity Frequency Stakeholders
City Website: www.cityofsalinas.org Year-round All
City Council Meetings Tuesdays @ 4:00 pm All
Social Media – Facebook,
Instagram and GovDelivery Year-round All
City Office Year-round All
11.2.1 City Website
Information is posted on the City website, www.cityofsalinas.org and includes reports, documents, maps, links, City meeting minutes and agendas, educational material and public service announcements. The City SSMP can be found on the City website. Sewer spill emergency contact information is also provided on the City website.
Sewer System Management Plan – Revision 2
Element 11 – Communication Program
City of Salinas
May 2025
Updates and revisions to the SSMP will be posted and maintained on the City website when completed.
11.2.2 City Council Meetings
City Council Meetings are generally held on alternating Tuesdays of each month at the City Hall Rotunda. Utility sewer operation, Sewer Spill Reports, SSMP updates, significant revisions, audits and SSMP status reports are presented at the Council meetings to receive input.
11.2.3 Social Media
The City uses social media (Facebook and Instagram and GovDelivery) to post information about utility projects, public education and outreach, and highlight items on the Council agenda.
11.2.4 City Public Works Office
The City Office located at 200 Lincoln Avenue, has copies of educational material, public service announcements, and staff that provide assistance and education to the public. Office hours are Monday- Friday from 8:00am to 5:00pm.
11.2.5 Public Notices for Spills – Public Areas
The public is notified of spills and discharges that result in closures of public areas (including streets and surface waters) by erecting cones and barricades, and by posting warning signs in accordance with the Spill Emergency Response Plan. The necessary equipment and signage are kept in the City’s emergency response vehicles.
11.2.6 Public Notices for Spills – Public Areas
The City has identified two water purveyors who would be notified in the event of a sewer spill in the vicinity of a source of drinking water. These purveyors are listed below:
o Alisal Water Service (ALCO)
249 Williams Road, Salinas CA 93905
(831) 424-0441
[email protected]
o California Water Service (Salinas Valley Region)
254 Commission Street, Salinas CA 93901
Business Hours (831) 757-3644 or
After Hours (831) 757-3644
11.3 Satellite and Tributary Systems
The wastewater collection system of the unincorporated community of Boronda to the northwest of Salinas is tributary to the Salinas sanitary sewer system. The County of Monterey Public Works Department is responsible for the operation and maintenance of this system.
Communication with the Boronda area is conducted on an as needed basis when conditions are warranted. Typical scenarios that require communication are:
o FOG Control Program (administered by the City of Salinas) o Capital Improvement Projects
o Sewer Spills
o Required Sewer System Maintenance
Sewer System Management Plan – Revision 02
Appendix 0A
City of Salinas
May 2025
Appendix 0A Placeholder – Meeting Minutes Adopting 2025 SSMP, Revision 2 Sewer System Management Plan – Revision 02
Appendix 2A
City of Salinas
May 2025
Appendix 2A Cover Sheet – City Organization Chart
City of Salinas
Maintenance Services Department Organization Chart
426 Work Street, Salinas, Ca. 93901
Administration: (831) 758‐7233
water
Sewer System Management Plan – Revision 02
Appendix 4A
City of Salinas
May 2025
Appendix 4A Cover Sheet – Hot Spot List
Page #1
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm
CITY OF SALINAS
Wastewater Division
Sewer Maintenance High Priority List
Revised December 20, 2016
Monthly:
No Street From To Lin Ft Ser
East Salinas Area
1 .
2 Murphy St M.H. @ E. Alisal & Murphy Shoot to M.H. on Murphy & also shoot towards R.R. tracks
3 E. Alisal St M.H. @ 347 E. Alisal St
4 E Alisal St M.H. @ intersection of E.
Alisal & Griffin
Shoot to Prader St
5 E. Alisal St Griffin St Shoot to Rianda St
6 E. Alisal St Turn pocket @ E. Alisal &
Kern
Shoot to Roosevelt & also to
Madeira Ave
7 E. Market St King St Shoot tot N. Madeira Ave.
8 King St. Intersection King & Roosevelt Shoot to M.H. on E Market St 9 E. Alisal St (M.H. @ fast Lane) King St Shoot towards Roosevelt 10 N. Wood St M.H. @ 24 N. Wood St Shoot towards M.H. @ Pearl St & Shoot with flow to La Paz Park
11 Roosevelt St M.H. @ 530 Roosevelt St Shoot towards building complex 12 N. Madeira Ave. From middle intersection N.
Madeira and Roosevelt
Shoot towards M.H. @ 31 N.
Madeira
13 N. Madeira Ave M.H. across 31 N. Madeira Ave
@ sidewalk
Shoot towards building
14 N. Madeira Ave & Roosevelt St M.H. closest to curb Shoot to M.H. on sidewalk at 31 N.
Madeira & also shoot towards
building complex
Page #2
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
15 E. Alisal St M.H. @ Intersection of Wood
& E. Alisal
Shoot to F.I. @ 548 E Alisal St, the
radio station
16 San Benito St M.H. @ Wood St & San Benito Shoot to E. Alisal & also shoot to S.
Madeira Ave
17 S. Wood St Second M.H. @ Wood St &
San Benito St
Shoot under trees to Pearl St
18 S. Wood St. Santa Maria Ave Shoot towards F.I. on Santa Maria & also to E. Alisal
19 S. Wood St James St Shoot towards F.I. on James St
20 S. Madeira Ave M.H. @ 75 S. Madeira Ave Shoot towards Santa Maria & shoot down F.I. on James & also shoot
with flow to Apartments
21 John St John St (north bound off ramp) Shoot to Santa Maria & shoot with flow to T.P.2
22 John St M.H. @ grass area @ 535 John Shoot to M.H. @ end of San Benito in ice plant
23 John St M.H. @ Parking lot @ 535
John St
Shoot to Hwy 101 M.H. @ grass
area & also shoot with flow to T.P.2
24 S. Hebbron Ave Prince Pl Shoot all Prince Pl
25 E. Alisal St Hebbron Ave Shoot towards Prince Pl & to E.
Market St
26 Garden Wy M.H. @ 933 Garden Wy Shoot to Filice St
27 John St Magnolia Ave Shoot to Hebbron Ave
28 S. Filice St M.H. @ John St Shoot to F.I. on Filice
29 E. Market St M.H. @ 101 bridge Shoot to Kern
30 N. Madeira Ave Terrace St Shoot to F.I. on terrace
31 E. Market St Carr St Shoot tow F.I. on Carr St & also with flow to Hebbron Ave
32 Carr St Terrace St Shoot to F.I. on Terrace
33 Carr St Fremont St Shoot to F.I. on Fremont
34 Elton Pl M.H. @ Elton & Hebbron Shoot to F.I. on Elton Pl 35 N. Hebbron Ave M.H. @ Hebbron & Fremont Shoot to Elton Pl. Lower Pressure Toilet Blown out
36 E. Market St M.H. @ E. Market & Hebbron Shoot to Fremont & also shoot to Page #3
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
37 E. Market St Division St Shoot with flow down Division St 38 Mayfair Dr M.H. @ 335 Mayfair Dr Shoot to F.I. on Mayfair Dr 39 S. Sanborn Rd M.H. on Island at Sanborn Rd Shoot under houses towards Magnolia Dr and Meadow
40 Fairview Dr Beverly Dr Shoot to M.H. on Beverly to Barbara Pl & also shoot with the flow to
M.H. across 101 @ Ice plants
41 S. Sanborn Rd M.H. @ Sanborn 101 on ramp Shoot south to the Ice plants 42 Terven Ave Vertin Ave Shoot to dead end on Vertin
43 Terven Ave 1057 Terven Ave Shoot to Vertin
44 Hilltop Dr M.H. at 1215 Hilltop Dr Shoot all 3 directions one with flow to Circle Pl
45 St George M.H. across 588 St. George Shoot all 3 directions one with flow 46 St. Thomas St. George Shoot to St. Edwards
47 Towt St First St Shoot to M.H. at 1248 First St
48 E. Market St Kenneth St Shoot to E. Laurel Dr
49 E. Market St First St Shoot to F.I. on First St
50 Cedar Pl Top Pl Shoot to F.I. on Top Pl
51 Kentucky St Valencia St Shoot to F.I. on Valencia
52 Washington Dr M.H. @ 101 Washington Dr Shoot to F.I. on Washington Dr 53 Cooper St M.H. @ 1458 Cooper St Shoot to F.I. on E. Laurel 54 E. Laurel Dr M.H. @ 1020 E. Laurel Dr Shoot to down St & also shoot to Sanborn Rd
55 Oregon St M.H. @ 105 Oregon St Shoot towards Laurel Dr 56 Fairhaven St First St Shoot to Williams & follow it to Towt St
Call 772-0407 Esperanza
Perez 1209 Fairhaven
57 Grandhaven First St Shoot to Williams & follow it to Towt St
58 Bellehaven St First St Shoot to Williams Rd & shoot to St.
Joseph cir and also follow it to Towt
59 Alma Ave Second Ave Shoot to Williams & shoot to Towt St
60 Garner Ave Towt St Shoot to Williams & also @
Page #4
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
intersection of Garner & Second
shoot to Alma
61 Acosta St Machado Ave /E. Sanborn Shoot to Beech St
62 Montana St Sanborn Rd Shoot to Beech St
63 Kimmel St Sanborn Rd Shoot to Beech St
64 916 Acosta Plaza M.H. @ 916 Acosta Plaza Shoot to Gee St & also shoot with flow to tree
65 66 Wiren St Williams Rd Shoot to F.I. on Wiren St
67 Rider St Holly St Shoot to F.I. on Holly St
68 Elm St F.I. @ dead end of Elm St Shoot to Rider Ave
69 Rider Ave Garner Ave Shoot to Alamo & shoot to Gee St & shoot to Charro Ave
70 Williams Rd E. Laurel Dr Shoot to all the way to Garner Ave 71 New Deal Del Monte Ave Shoot to Cortez St
72 Cortez St M.H. @ intersection Mae &
Cortez
Shoot to Town Houses @ Cortez
73 Mae Ave Del Monte Ave Shoot to Cortez
74 Del Monte Ave Williams Rd Shoot to Sanborn Rd all the streets in between both side
75 Green St M.H. @ Garner Ave Shoot to F.I. on Green St 76 Sunrise St M.H. @ Garner Ave Shoot to F.I. on Sunrise St 77 Mae Ave M.H. @ Garner Ave Shoot to F.I. on Mae Ave
78 C St M.H. @ Mae Ave Shoot to F.I. on C St
79 D St M.H. @ Mae Ave Shoot to F.I. on D St
80 81 Elkington Ave M.H. @ Del Monte Ave Shoot to F.I. on Elkington Ave 82 Pacific Ave M.H. @ Del Monte Ave Shoot to F.I. on Pacific Ave 83 Pacific Ave Sieber St Shoot to Del Monte Ave
84 Sieber St M.H. @ 1028 Sieber St Shoot to Pacific Ave 85 Garner Ave Sieber St Shoot to M.H. @ 1028 Sieber St & shoot to F.I. on Garner to Pacific
86 Garner Ave Pacific Ave Shoot to F.I. on Pacific Ave Page #5
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
87 Rider Ave M.H. @ 1234 Rider Ave Shoot under houses to Caoba 88 Paseo Grande M.H. @ Sanborn Rd Shoot to Estrella Wy
89 Towt St M.H. in from of 769 Towt St Shoot under house 90 Cross Ave M.H. @ E. Market St Shoot to Bardin Rd
91 Dennis Ave Tampa St Shoot to Bardin Rd
92 Toro Ave Tampa St Shoot to Bardin Rd
93 Afton Rd Ct Sycamore St Shoot to Margaret St Call First Mrs. Moreno at 155 Sycamore #758-9046
Lower Pressure Toilet
Blown out
94 Tampa St Paloma Ave Shoot to Sycamore
95 Avis Sycamore St Shoot to F.I. on Avis Ct
96 Paloma Ave Quilla Ave Shoot to Tampa St
97 Cross St E. Paloma Shoot to East Market Street
98 E. Alisal St E. Market St Shoot to Margaret St
99 Afton St. Sycamore St. Avis St.
100 Rider Ave M.H.@ Rider Ave & Las
Casitas
Shoot to F.I. on Hawaii Pl
101 Rider Ave @ Las casitas Rider Ave Shoot to F.I. on Las Casitas (not force Main)
102 La Honda/ Alamo Wy Lift Station @ Las Casitas Shoot to all Ranchero & to La Honda and also pull to F.I west on Alamo
103 Vista Nueva lift station All the streets to lift station 104 Bison St Eagle Dr Shoot to Bison Wy
105 Eagle Dr M.H. @ 1048 Eagle Dr Shoot to east on Eagle & with flow to Freedom
106 Rider Ave Buckhorn Dr Shoot to Chamise Dr
107
108
109 John St M.H. @ 1219 John St M.H. at corner of fence, side of nursery
110
111 Paloma St. Paloma &Sycamore St. Afton St.
Page #6
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
112 Paloma St. Paloma &Sycamore St. Margaret St.
113 East Alisal St. East Alisal & Tampa Paloma
114 Toro Ave. Toro & Tampa Paloma
115 Garner Ave. Garner & Towt St. F.I On Towt St.
116 Sanborn St. Sanborn & Mohar Beech St.
117 Division St. Division & East Market St. East Sanborn 118 Bridge At Ford Dealer (Elvee) Parking Lot Manhole in the Field 119 Orchard St. Orchard & Seiber Delmonte Ave.
120 Sanborn St. Sanborn & East Market St. Both ways to Cedar 121 Manhole at Sanborn & E. Acosta Manhole at Sanborn & E.
Acosta
Shoot Three Ways Am List
122 Acosta St. Second Ave F.I towards Towt
123 St. Charles Way St. Edwards/ St. Augustine N. Madiera 124 Dewey St. Beech St. F.I On Towt Street
125 Second St. E. Laurel Drive Acosta St.
126 Midway St. E. Market St. E. Laurel Dr.
127 East Laurel Dr. Towt St. Midway St.
128 Sanborn Rd M.H @Laurel and Sanborn Shoot all directions Am List 129 Sanborn Rd Sanborn and E. Alisal St. Shoot to Towt Am List
Page #7
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
North Salinas Area:
1 Truman St M.H. @ Eisenhower St Shoot to Fillmore St
2 Eisenhower St M.H. @ Arthur St &
Eisenhower St
Shoot to F.I. on Eisenhower to
Barkley Dr & Also shoot to F.I. on
Eisenhower to Truman & shoot to
F.I. on Arthur
3 Hoover St Souza St Shoot to Arthur St
4 Souza St Lenny St Shoot both ways
5 Lenny St M.H. @ 18802 Lenny St Shoot to F.I. on Lenny St/ Souza – F.I From Souza
6 Louise St M.H. @ 13220 Louise St Shoot to Lenny St & shoot under houses to Arthur St
7 Louise St M.H. @ 13170 Louise St Shoot to Lenny St & also with flow to Van Buren
8 Jackson St M.H. @ Van Buren & Jackson Shoot to F.I. on Jackson to Swaner 9 Van Buren St M.H. @ intersection Van Buren
& Bolivar
Shoot to Jackson st
10 Bolivar St M.H. @ 207 Bolivar St Shoot to Van Buren St 11 Bolivar St M.H. @ Bolivar & Soto Pl Shoot to Santa Rita & also shoot with flow to Lift Station Shoot To
Prado
12 Prado St M.H. @ 108 Prado St Shoot to F.I. on Prado & also to N.
Main St
13 San Juan Grade Rd M.H. @ 33 San Juan Grade Rd Shoot to Boronda Rd 14 Madrid St M.H. @ Madrid St/ Madrid Cir Shoot to dead end 15 Madrid St M.H. @ Cherokee & Madrid Shoot to Segovia Cir 16 Cherokee Dr M.H. @ Cherokee & Seville
Wy
Shoot both ways
17 Seville Wy M.H. @ Seville St & Seville Shoot to Cherokee Dr Page #8
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
18 Seville St M.H. @ 1606 Seville St Shoot to Seville Wy / To F.I @ 1655 19 Seville St M.H. @ 1501 Duran St Shoot to 1606 Seville St 20 Douglas Ave M.H. @ N. First St & Douglas Shoot to F.I. on Douglas Ave 21 N. First St M.H. @ Curtis St & N. First St Shoot to Douglas St Lower Pressure Toilet Blown out
22 Adams St M.H. @ Adams St & Tulane St Shoot to Crescent Wy 23 Rochex St M.H. @ Rochex & N. Four @
cross walk
Shoot to Parkside St & shoot with
flow to Laurel Dr
24 W. Laurel Dr. M.H. @ W. Laurel Dr &
Baldwin St
Shoot to F.I. on Baldwin St
25 Polk St M.H. @ Polk St & Monroe Shoo to F.I. towards W. Laurel Dr 26 W. Laurel Dr M.H. in front of black bear
restaurant @ Parking lot
Shoot towards Laurel Inn sign
27 Iris Alley M.H. @ Iris Dr & Iris Alley Shoot both ways let restaurant know before servicing
28 Iris Dr M.H. @ Iris Dr & Lupin Dr Shoot to Iris Alley 29 Lupin Dr M.H. @ Lupin & Gardenia Cir Shoot to Iris Dr 30 Gardenia Cir M.H. @ Gardenia Cir &
Gardenia Dr
Shoot to Lupin & with flow to M.H.
@ Heather Apartment M.H. Ice plant
31 Iris Dr. M.H. @ 350 Iris Dr Shoo to Heather Apartment to M.H. @ Ice plant
32 Iris Dr M.H. @ Heather Apt. driveway Shoot to Skyline Care Center around parking lot towards kitchen area &
also shoot with flow to Heather cir
33 Heather Cir M.H. in front of 939 Heather
cir
Shoot to Iris Dr
34 Columbia Dr Heather Dr Shoot under houses to Parkside 35 Columbia Dr Heather Dr Shoot to Lupin Dr
36 N. Main St M.H. @ N. Main St & Navajo Shoot to Alvin Dr 37 N. Main St M.H. @ 1339 N. Main @
Wendy’s
Shoot to Navajo
38 N. Main St M.H. @ N. Main & Curtis St Shoot to Wendy’s & also shoot to N.
First St
Page #9
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
39 N. Main St M.H. @ N. Main & Rochex St Shoot to Curtis St & also shoot to Parkside St
40 N. Main St M.H. @ 1165 N. Main St Shoot to Rochex
41 N. Main St M.H. @ 1111 N. Main St Shoot to M.H. @ 1165 N. Main St
42 N. Main St M.H. @ 1045 N. Main St
Goodwill Store
Shoot to M.H. @ 1111 N. Main St
43 N. Main St M.H. @ Iris & N. Main Shoot to M.H. @ 1045 N. Main St 44 N. Main St M.H. on N. Main @ Clear
Channel billboard Sherwood
Garden Shopping center
Shoot to Iris Dr
45 N. Main St M.H. @ N. Main & Bernal Shoot to Sherwood garden shopping center & shoot with flow to Santa
Clara St
46 N. Main St M.H. @ 500 N. Main St Shoot to Hwy 101 underpass 47 N. Main St M.H. @ N. Main St & Deer St Shoot to F.I. on Deer St & also shoot to Bernal Dr
48 N. Main St M.H. @ North east corner of
Alvin/ N. Main St
Shoot to Wheeler M.H center along
sidewalk to Julia St.
49 50 Julia St M.H. @ 45 Julia St Shoot under house to N. Main St 51 Calaveras Dr M.H. @ 680 Calaveras Dr @
Dead end
Shoot to Klamath & with flow to
Natividad Rd
52 Donner Wy M.H. @ Emerald Dr Shoot to Humboldt
53 Tahoe Dr M.H. @ 1741 Tahoe Dr Shoot to Donner Wy
54 Tahoe Dr M.H. @ 1752 Tahoe Dr Shoot to 1741 Tahoe & with flow to Natividad Rd
55 Pescadero Dr Los Coches Shoot to El Sur Ave
56 Natividad Rd M.H. on island at Natividad &
Millbrae
Shoot to Mexican Restaurant
57 Marin Ave M.H. @ E. Alvin & Marin Ave Shoot to Mariposa St 58 Rainier Dr M.H. @ Rainier & Lassen Shoot to Linwood
59 Rainier Dr M.H. @ Rainier & Tampico Shoot to Lassen 60 Rainier Dr M.H. @ Rainier & Marin Shoot to Tampico & shoot with flow Page #10
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
to Natividad Rd
61 Tampico Ave M.H. @ Tampico & Elwood Shoot to Linwood & also shoot to Chaparral Dr
62 Chaparral Dr M.H. @ 411 Chaparral Dr Shoot under house 63 Maryal Dr M.H. @ Chaparral & Maryal Shoot to F.I. on Chaparral to Noice & also shoot to North Salinas High
64 Maryal Dr M.H. @ Maryal & Reata Shoot to Chaparral Dr 65 Reata St M.H. Reata & Dororo Shoot to Maryal Dr
66 Dororo St M.H. @ Tapadero & Dororo Shoot to Reata St Lower Pressure Toilet Blown out
67 E. Laurel Dr M.H. 13 E. Laurel Dr @ Laurel
Square shopping center
Shoot under property line to Curtis
St & also shoot to Tapadero St
68 N. Main St M.H. @ old Lucky,s Parking
lot
Shoot with flow to sport complex
69 @ Muni Parking Lot F.I. next to restrooms Shoot with flow towards entrance to ball park
70 @ Muni Parking Lot M.H. inside entrance @ muni
ball park
Shoot towards snack bar& with flow
towards sports complex maint. shed
71 @ muni M.H. @ entrance to soft ball
fields @ Sport complex
Shoot to Maint. shed
72 Bernal Dr M.H. @ Bernal Dr & Alpine St Shoot to M.H. in park next to swimming pool
73 Bernal Dr M.H. next to Tennis Court Shoot to Park
74 Bernal Dr M.H @ Dirt Road Shoot to F.I. @ 10 Bernal
75 E. Rossi St M.H. @ E. Rossi & California Shoot to 150 Sherwood Dr 76 77 M.H. @ Kmart Parking Lot M.H. @ Kmart Parking Lot Shoot to Sherman Dr 78 Sherman Dr M.H.@ Sherman Dr/Sherman
Cir
Shoot with flow to wall & also to
Alvarado Dr
79 Natividad Rd. Rainer St. Marin St.
80 Nantucket Whittman De Cunha Ct.
81 Newport Dr. M.H @1642 Newport Shoot Both Ways
82 Imperial way M.H @ Sutter Manhole shoot to Napa way Page #11
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
South Salinas Area:
1 Villa St M.H. @ villa & Kirkwood Shoot to Wilson
2 Villa St M.H. in front of Bus Station Shoot M.H. @ Villa & Kirkwood 3 Wilson St M.H. @ villa St Shoot to Catalina Ave
4 Riker St M.H. @ Central Ave Shoot to Park St
5 Anne St Alexander St Shoot to F.I. on Anne St
6 W. Market St Capitol St Shoot to Stone St & also shoot to Riker
Low Pressure Call 424-
1928 American Supply
Caroline or Perry
7 Capitol St M.H. @ Archer (2 M.H.) Shoot both M.H. to W. Market St 8 Station Pl M.H. @ W. Market St Shoot to Station building 9 W. Market St Stone St Shoot to Station Pl
10 Stone St Central Ave Shoot to W. Market St
11 Central St Capitol St Shoot to Stone St
12 Capitol St M.H. @ intersection Gabilan &
Capitol
Shoot to Archer
13 Capitol St M.H. @ W. Alisal St Shoot to W. Gabilan St 14 California Alley M.H. @ E. Alisal St Shoot both ways 15 Gonzales Alley M.H. @ E. Alisal St Shoot both ways
16 Greenfield Alley M.H. @ E. Alisal St Shoot both ways & shoot to front St & also with flow to Pajaro St
17 18 Harmony Ln M.H. @ E. Alisal St Shoot to E. San Luis St & also shoot to Monterey St
19 Melody Ln M.H. @ E. Alisal St Shoot both ways (need to open M.H. at Gabilan to keep smell & overflowing
in restaurant)
20 Howard St M.H. @ Lincoln St Shoot to F.I. on Howard to Salinas St 21 W. Alisal St M.H. @ Lincoln & W. Alisal St Shoot to San Luis St & shoot to Howard St & also shoot to Salinas St
Am List
22 Lacey Ln M.H. @ E. Gabilan St Shoot to Lacey Alley
Page #12
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
23 E. Gabilan St M.H. @ intersection of
Gabilan/Monterey
Shoot to Lacey Ln
24 Lodge Alley M.H. @ Gabilan St Shoot to Market St
25 W. Alisal St Capitol St Shoot to Lorimer St
26 Central Ave San Gabriel Shoot to National St & also shoot to College Dr
27 San Gabriel Cir M.H. @ dead end on San
Gabriel
Shoot to Central & also shoot with
flow to W. Alisal St
28 W. Alisal St M.H.@ 623 W. Alisal St Shoot to San Gabriel 29 Riker St M.H. @ intersection Clay &
Riker
Shoot to Lang St & shoot to F.I. on
Clay St to Homestead ( low pressure)
30 Geil St M.H. @ 247 Geil St Shoot to Riker
31 Geil St M.H @ Iverson/Geil Shoot to Riker St
32 Iverson St M.H. @ 805 Iverson Shoot to Geil St
33 College Dr M.H. @ intersection Marion &
College
Shoot to Iverson
34 Lincoln Ave M.H. @ intersection Clay &
Lincoln
Shoot to F.I. on Lincoln to Avenue A
35 Lincoln Ave M.H. @ 500 Lincoln Ave Shoot under parking lot to S. Main St 36 Lincoln Ave M.H. @ intersection San Luis
St & Lincoln
Shoot to Clay St
37 South Main St. M.H @ John St. Shoot both Ways Am List 38 John St M.H. @ Monterey & John St Shoot to S. Main St Am List 39 John St M.H. @ intersection Pajaro &
John
Shoot to San Luis St & also shoot
Main St.
Am List
40 Pajaro St M.H. @ 427 Pajaro St Shoot to San Luis St (big line) Am List 41 Pajaro St San Luis St Shoot to John St
42 Abbott St M.H. @ intersection John St &
Abbott St
Shoot to Summer St (done A.M. due to
traffic)
Am List
43 John St M.H. @ intersection Front &
John St
Shoot to Abbott St Am List
44 Abbott St M.H. @ slow lane on Sanborn
@ Chevron Gas station side
Shoot all the way to537 Abbott St
(acme car wash)
Am List
45 Abbott Pl M.H. Bet. Fire Station #3 & gas Shoot to R.R. tracks Page #13
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
Station
46 S. Main St M.H. @ intersection San
Joaquin & S. Main St
Shoot to Plaza Cir & also shoot to
Pajaro St
47 Woodside St Briarwood St Shoot to Baywood
48 Sierra Madre St M.H. @ Santa Monica & Sierra
Madre
Shoot under homes to Blanco Rd
49 Palma St M.H. @ W. Alisal St & Palma Shoot to Carmelita St 50 Carmelita St Palma St Shoot to F.I on Carmelita St
51 San Blanco Ct M.H. @ San Blanco Las Cruces
Wy
Shoot 3 directions one with flow under
houses
52 Kipling St M.H. @ Kipling & Shelley Wy Shoot to F.I. on Shelley Wy 53 S. Main St M.H. @ Stephanie/S. Main Shoot south to Hwy 68 Am List 54 Stephanie Dr M.H.@ 76 Stephanie Dr Shoot to S. Main St Am List
55 532 Capital Street From M.H on Clay Street to F.I on Capital 56 W. Alisal Street Homestead Ave. Lorimer Street Am List 57 Monterey St. M.H @ East Alisal Shoot to Pajaro and East Gabilan Am List 58 W. Market St. Uni Kool Buis.
Park
M.H in back of property Villa St.
59 W. Market St. Mission Linen M.H in back of property Shoot towards Villa St. 60 Clark st. M.H in school bus proprty Shoot towards Villa St.
Page #14
\\wlg-fs01\projects\0886-0046 SSMP Update\06 - Reports and Calculations\Drafts\Appendix\hot spots monthlynew.doc.03/07/25.8:22 AM.tm Monthly:
No Street From To Lin Ft Ser
AM Manholes
1 2 S. Main St M.H. @ intersection John & S.
Main
Shoot both ways
3 John St M.H. @ Monterey & John St Shoot to S. Main St 4 John St M.H. @ intersection Pajaro &
John
Shoot to San Luis St & also shoot
Main St.
5 W. Alisal St M.H. @ Lincoln & W. Alisal St Shoot to San Luis St & shoot to Howard St & also shoot to Salinas St
6 Pajaro St San Luis St Shoot to John St
7 W. Alisal St M.H. @ intersection
Homestead & Alisal st
Shoot to Lorimer St
8 Abbott St M.H. @ intersection John St &
Abbott St
Shoot to Summer St (done A.M. due to
traffic)
9 Abbott St M.H. @ slow lane on Sanborn
@ Chevron Gas station side
Shoot all the way to537 Abbott St
(acme car wash)
10 Tervin St M.H. @ intersection Tervin &
Sanborn Pl
Shoot to Vertin St
11 S. Main St M.H. @ Stephanie/S. Main Shoot south to Hwy 68 12 Stephanie Dr M.H.@ 76 Stephanie Dr Shoot to S. Main St 13 E. Market St M.H. @ Sanborn & Market Shoot to both ways & shoot Market St to Cedar st
14 E. Alisal St M.H. @ Sanborn & Alisal Shoot to Towt St 15 Sanborn Rd M.H. @ intersection Laurel &
Sanborn
Shoot both ways
16 Sewer Hot Spot List
Revised 12/10/2024
Quarterly
No Street From To Lin Ft Ser
East Salinas Area: Serviced Every ---Feb. – May – Aug. – Nov. 1 Kern St. E. Alisal and Griffen St. F.I. on Kern St. 500 2 S. Madiera St. James St. M.H. near apts on John St. 300 3 Mayfair St. Sanborn Rd. 800 ft. on Mayfair 900
4 Meadow Dr. Island on Sanborn Rd. Meadow and Magnolia Dr. 600 5 Hwy 101 on ramp at 101 and
SanbornRd.
101 on Ramp at Sanborn Rd. Fairview Dr. heading East under Freeway
800
6 Airport Blvd. M.H. on Airport Blvd. Across
Smuckers
M.H. near Hanson St. and Airport
Blvd.
900
7 Kimmel St. N. Sanborn Rd. F.I. on Kimmel St. 1150
8 Sunrise St. Garner Ave. F.I. on Sunrise St. 1070
9 Towt St. Del Monte Ave. F.I. at end of Towt 900
10 Wiren St. Williams Rd. F.I. end of Wiren St. 1000
11 Pacific St. Del Monte Ave. F.I. on Pacific St. 800
12 Acosta Plaza Apts. M.H. near tree M.H. in upper parking lot 800 13 New Deal St. Del Monte Ave. Cortez St. 800
14 Valencia St. Kentucky Ave. F.I. on Valencia St. 500
15 Garner Ave. Towt St. F.I. near Williams Rd. 1500
16 Pacific St. Seiber St. Del Monte Ave. 900
17 Pacific Del Monte F.I. on Pacific 800
18 Sewer Hot Spot List
Revised 12/10/2024
Quarterly
No Street From To Lin Ft Ser
North Salinas Area: Serviced Every – Feb. – May – Aug. – Nov.
1 Calveras Dr. Klamath Dr. Yreka Dr. 900
2 Dororo Dr. Tapadero Dr. Reata Dr. 1100
3 Kammen Park Laurel Dr. In Park Area Rochex Dr. 620
4 N. Main St. Navajo St. M.H. just beyond Bernal Dr. head South
6600
5 Deer St. N. Main St. F.I. On Deer St. 320
6 M.H. at Bernal Dr. and N.Main
St.
M.H. at Bernal Dr. and N. Main
St.
M. H. at Santa Clara St. 500
7 Columbine St. M.H. at Columbine St. and
Heather Dr.
M.H. at basketball Court near fence off
of Parkside Dr. in rear of Apts.
580
8 E. Laurel Dr. M.H. at N. Main St. and E.
Laurel Dr. head East
800 East of Noice St. On East Laurel
Dr.
800
9 E. Laurel Dr. N. Main St. on Eastside of N.
Main St.
M.H. in Old Lucky’s Parking Lot near
fence at Rodeo Grounds
350
10 Lucky Parking Lot near fence at
Rodeo Grounds
Lucky Parking Lot near fence
at Rodeo Grounds
Identify Locations when servicing
M.H. to M.H. out to Bernal
????????????
11 Muni – Ball Park Stadium 500
12 Carpenter’s Hall Rec Ditch Bunkers at Carpenter’s Hall Ditch – Northside
Bunkers just South of Main Rec Ditch
1665
300
13 33 San Juan Rd. Manhole bet. N.Main and
Boronda
400
14 Boronda Rd. MH-E4-003 MH-E4-002 281.57
West Salinas Area: Serviced Every – Feb. – May – Aug. – Nov.
1 Harmony Alley W. Alisal St. E. San Luis St. 800
2 Capitol St. W. Alisal St. Gabilan St. 800
Sewer Hot Spot List
Revised 12/10/2024
Quarterly
No Street From To Lin Ft Ser
3 Riker Terrace St. W. Alisal St. and Riker Terrace F.I. on Riker Terrace 1000 4 W. Alisal St. Lorimer St. 800’ To Capitol St. 1000
5 Lincolin St. Clay St. M.H. South of Liquor Store 600
6 Monterey St. E. Alisal St. Gabilan St. 700
7 Lacey Lane Gabilan St.. Market St. 600
8 Gabilan St. Monterey St. Lacey Lane 200
9 Lodge Alley Gabilan St. Market St. 700
10 150 Sherwood Dr. Service line from Rossi at
California St. heading North
through empty lot next to PGE
If you can’t get through line from
Rossi and California than go to F.I.
500
South Salinas Area: Serviced Every – Feb. – May – Aug.- Nov.
1 Sierra Madre Dr. Santa Monica Dr. Service with flow to Blanco St. 200 2 San Juaquin St. S. Main St. F.I. on San Juaquin St. 700 3 S. Main St. F.I. near Winham St. M.H. at John St. and Pajaro St. 800 4 S. Main St. SanJuaquin St. F.I. on S. Main St. 500
5 John St. Pajaro St. S. Main St. 800
6 Pajaro St. San Luis John St. 800
Sewer System Management Plan – Revision 02
Appendix 8
City of Salinas
May 2025
Appendix 8 Cover Sheet - CIP
8A – Lift Station Ranking Matrix
8B – CIP Ranking Matrix
8C1 – Existing CIP
8C2 – Existing Lift Station CIP
8C3 – Future CIP
8D – Capital Projects Schedule
TABLE 7-3
CITY OF SALINAS SSMPU
EXISTING LIFT STATION CIP RANKING MATRIX
Importance Factor 5 4 3 3 2 2 2 1
Overflow to Water
Bo
dy of the State Inspection Frequency
Existing Pumping
Capacity Deficiencies
Peak Hour Emergency Response
Time Bypass Required?
Onsite Generator with Automatic
Transfer Switch Required?
Critical Control/Electronic
Upgrades Required? Community Impact
Impacted By Future
Development
Yes - 10
No - 0
Emergency Callouts-10
Daily Inspections-5
Weekly Inspections-0
Yes-10
No-0
0-15 minutes-10
15-30 minutes-5
Greater than 30 minutes-0
Yes-5
No-0
Yes-5
Replace Generator-3
No-0
Yes-5
No-0
< 5,000 - 0
5,001 to 10,000 - 5
>10,000 - 10 Yes/No
Lake St Lift Station 10 10 10 10 0 3 5 10
Ye
s, Target Area V, East
Alisal Street/East Market
Street, Central Area and
East Area Specific Plans,
and East Area FGA
Pumps must be upsized
for future flows.
176 1
Santa Rita Lift Station 10 10 0 10 5 3 5 5
Bolsa Knolls Septic
Conversion & Target Area
K 151 2
Carpenter Hall Lift Station 10 5 0 10 5 3 0 10
Yes, North Boronda FGA
and Targe Areas K & V 126 3
De La Torre Lift Station 10 10 0 0 5 5 5 0
Possible, Southeast FGA
Pumps may need to be
upsized for future flows 120 4
Spicer Lift Station 10 10 0 0 5 5 5 0 No 120 5
Mill Lake Lift Station 10 5 0 10 5 0 5 0 No 120 6
Vista Nueva Lift Station 10 10 0 0 0 0 0 0 No 90 7
Las Casitas Lift Station 10 0 0 10 0 0 5 0 No 90 8
TP2 Lift Station 10 0 0 0 5 3 0 10
Yes, East Alisal
Street/East Market Street
and East FGA.
Pumps must be upsized
for future flows. 76 9
Harkins Lift Station 0 10 0 0 5 5 5 0
Yes, Salinas Ag-
Industrial Center
Pumps must be upsized
for future flows 70 10
Airport Lift Station 10 0 0 0 0 0 0 0 Yes, Southeast FGA 50 11 Project Name
Sc
ore =
Importance
Factor X Points Ranking
7-7
TABLE 7-2
CITY OF SALINAS SSMPU
EXISTING HYDRAULIC AND MAINTENANCE REPAIR CIP RANKING MATRIX Importance Factor 5 4 3 2 1
Overflow to Water
Bo
dy of the State Design Standard Maintenance Hot Spot Community Impact Near City Manhole Monitor Impacted By Future Development Yes - 10
No - 0
Meets Design Standard - 0
Doesn't Meet Design Standards - 2
Surcharging - 5
Overflowing - 10
Not Critical - 0
Yearly Check - 5
Weekly or Monthly Checks - 10
< 5,000 - 0
5,001 to 10,000 - 5
>10,000 - 10
Yes-5
No-0 Yes/No
Cesar Chavez Park
(includes North Madeira Avenue Repairs) Hydraulic Deficiency 10 5 5 10 0 Yes, East Alisal Redevelopment 105 1 Upper Carr Lake Repairs O&M 10 0 10 10 0 Yes, North Boronda FGA 100 2 Upstream TP2 Diversion Hydraulic Deficiency 10 5 0 10 0 No 90 3 Northridge Mall Hydraulic Deficiency 10 5 0 10 0 Yes, Target area K 90 4 East Market and Upstream of Lake Street Repairs O&M 10 0 5 5 0 No 75 5 Louis & Van Buren Repairs O&M 10 0 5 0 5 No 70 6
West Market at Davis Overcrossing O&M 10 0 5 0 0 Yes, West Boronda FGA 65 7 Cherokee Dr Hydraulic Deficiency 0 5 0 10 5 Yes, Target Area K 45 8 Malarin St and Wilgart Way Repairs O&M 0 5 5 5 0 No 45 9 Romie Lane Repairs & Reconfiguration Analysis O&M 0 0 10 5 0 No 40 10 King Street Repairs O&M 0 0 10 0 5 No 35 11
Del Monte and Mae Repairs O&M 0 0 10 0 5 No 35 12
Riker Street Repair O&M 0 0 10 0 5 No 35 13
West Market Street Repairs O&M 0 0 10 0 5 No 35 14
Johnson Place Repairs O&M 0 5 5 0 0 No 35 15
N Main St Hwy 101 Underpass Bunker Repair O&M 0 0 10 0 0 Yes, Target area V 30 16 Donner Way Repair O&M 0 0 10 0 0 No 30 17
San Miguel Ave Repair O&M 0 0 10 0 0 No 30 18
Noice Drive/Tyler Street Hydraulic Deficiency 0 5 0 5 0 No 30 19 Natividad Rd or Alternative Natividad Consolidation Hydraulic Deficiency 0 5 0 5 0 Yes, Target area V, north boronda FGA 30 20 Acacia, Bautista, Woodside Repairs O&M 0 0 5 0 5 No 20 21 Comanche, Polk, and North First Repairs O&M 0 0 5 0 5 Yes, Target area K 20 22 Sherwood Dr Repairs O&M 0 0 5 0 5 Yes, Target area V 20 23 East Laurel and Williams Repairs O&M 0 0 5 0 0 No 15 24 Hoover Street Repair O&M 0 0 5 0 0 No 15 25
Project Name
Sc
ore =
Importance
Factor X Points RankingType of Project
7-5
TABLE 7-2
CITY OF SALINAS SSMPU
EXISTING HYDRAULIC AND MAINTENANCE REPAIR CIP RANKING MATRIX Importance Factor 5 4 3 2 1
Overflow to Water
Body of the State Design Standard Maintenance Hot Spot Co mmunity Impact Near City Manhole Monitor Impacted By Future Development Yes - 10
No - 0
Meets Design Standard - 0
Doesn't Meet Design Standards - 2
Surcharging - 5
Overflowing - 10
Not Critical - 0
Yearly Check - 5
Weekly or Monthly Checks - 10
< 5,000 - 0
5,001 to 10,000 - 5
>10,000 - 10
Yes-5
No-0 Yes/NoPr oject Name
Score =
Importance
Factor X Points RankingTy pe of Project
Katherine Ave & Pajaro St Repairs O&M 0 0 5 0 0 No 15 26 Wood Street Reconfiguration Analysis O&M 0 0 5 0 0 No 15 27 Inflow/Infiltration Evaluation Hy draulic
-- -- -- - - -- -- --
Dependent on
si
gnificant wet
weather year
CCTV Inspection Program O&M -- -- -- - - -- -- -- Annual Program Brick Manhole Inspection & Replacement O&M -- -- -- - - -- -- -- Ongoing Inspection Flushing Inlet (Cleanout) Inspection & Replacement O&M - - -- -- - - -- -- -- Ongoing Inspection 7-6
TABLE 7-4.
CITY OF SALINAS EXISTING CAPITAL IMPROVEMENT PROGRAM (CIP) Project # Title Description Tributary
Area
Length
(Ft)
Old
Diameter
(in)
New
Diameter
(in)
Street Location Upstream Manhole
Number
Downstream Manhole
Number
Construction Cost
($)
Soft
Cost
($)*
Total Project Cost
($)**
Lake St 2,100 15 18 Acosta Plz Garner Ave to E Laurel
Dr J7-007 K7-017
Lake St 3,000 21 24 Open Space/Park E Laurel Dr to near Circle Dr K7-017 L6-001
Lake St 3,500 24 27 Open Space/Park Circle Dr to Longbow Way L6-001 K5-007
New sewer main Lake St 70 -- 24 Open Space/Park Near Yorkshire Way K5-007 K5-014
1.1 Mark Thomas 2017 Findings
Minor defects, needs new frame and cover, lining
interior of manhole (Garde:10) (K5-001); Visible
agregate and broken frame, needs new frame & cover,
lining interior of manhole (Grade: 3) (K5-003); Pipe
(Grade:4),WLS of 0.6, encrustations
Lake St 380 24 24 N Madeira Ave
N Madeira north of
Cesar Chavez park
between St Helen Way
and Terrace St
K5-001 K5-003 $438,000 $175,200 $613,200
Mark Thomas 2017 Findings
New MH frame and cover, install marker (Grade:5)
(MH I6-004); expose and raise MH- curently buried
(Grade:10) (I6-006); New MH frame and cover, install
marker (Grade:10) (I6-005); (I6-004 to I6-006) Pipe
WLS =0.35, root ball, (Grade: 3); (I6-006 to I6-005)
(Grade:2)
Lake St 410 21 21 Laurel Dr. Bike Trail Near
Veteran's Way I6-004 I6-005 $396,500 $158,600 $555,100
Mark Thomas 2017 Findings
New MH frame & cover w/ PCC collar, line in 5 yrs
(Grade:3) (J6-001); New frame & cover w/ PCC collar,
line in 5 yrs (Grade:3) (J6-002);Pipe d/D: 0.75, grease deposits (Grade: 10)
Lake St 300 27 27 Trail around Upper
Carr Lake
Off of E Laurel Dr near
Veteran's Way J6-001 J6-002 $406,000 $162,400 $568,400
$802,500 $321,000 $1,123,500
3 Upstream TP2 Diversion Weir Construction TP2 -- -- -- East Alisal St South Sanborn Rd M6-012 -- $45,000 $18,000 $63,000 Upsize sewer main -- 2,300 15 18 North Main St
From East Boronda
Road to San Juan
Grade Road
E4-007 F4-011
Sewer Main Connection/Realignment -- 320 -- 18 North Main St From Big 5 Sporting Goods to Harden Pkwy F4-007 F4-031
Northridge Mall4
Upper Carr Lake Repairs
$1,916,000
Upsize sewer mainCesar Chavez Park
$766,400 $2,682,400
2 $3,347,600 $11,716,600$8,369,0001
CCTV evaulation noted pipe encrustations and manholes need new frames, covers, and lining in a portion of the Cesar Chavez Park CIP. These repairs are noted below and should be replaced if Cesar Chavez Park CIP is not constructed in the near term.
Total Repair Project Costs
7-8
TABLE 7-4.
CITY OF SALINAS EXISTING CAPITAL IMPROVEMENT PROGRAM (C IP) Project # T itle Description Tributary
Area
Length
(Ft)
Old
Diameter
(in)
New
Diameter
(in)
Street Location Upstream Manhole
Number
Downstream Manhole
Number
Construction Cost
($)
Soft
Cost
($)*
Total Project Cost
($)**
Mark Thomas 2017 Findings
Expose and raise MH to grade, buried (Grade:10) (K5-
008)
Lake St -- -- -- Yorshire Way
Yorkshire Way, between
Longbow Way and
Doncaster Pl
K5-008 -- $5,900 $2,360 $8,260
Mark Thomas 2017 Findings
Expose and raise MH to grade, buried (Grade:10) (K5-
010); Pipe broken, encrustations (Grade:5)
Lake St 150 24 24 Longbow Way Long bow Way and Kern
St K5-009 K5-010 $169,400 $67,760 $237,160
Mark Thomas 2017 Findings
Replace frame & cover w PCC collar, reline, Corroded
f
rame & chimney (Grade: 10) (K5-012); Replace
Frame & cover w PCC collar, install marker, corrosion , grease and surcharge (Grade:10) (K5-021); Pipe
cracks, grease deposits, (Grade:3); Replace frame &
cover w PCC collar, install marker, corroded frame and
aggregate (Grade:3) (K5-019); Replace frame & cover,
install ecc. Cone for fence, corroded frame & heavy
grease & surch. (Grade:10) (K5-020); Pipe WLS:
0.25,d/D:0.9, grease deposits (Grade:2)
Lake St 840 24 & 30 24 & 30 East of Sun St Between Sun St and HW
Y 101 K5-012, K5-019 K5-020, K5-021 $1,125,100 $450,040 $1,575, 140 Mark Thomas 2017 Findings
New frame & cover, lining interior of manhole
(Grade:10) (L4-002 and L4-004)
Lake St -- -- -- E Market St E Market St, between
Su
n St and Peach Dr L4-002 L4-004 $23,800 $9,520 $33,320
$1,324,200 $529,680 $1,853,880
Pipe sags, surcharging manholes Santa Rita 260 8 8 Louise St Louise St, between Le
nny St and Louise Ct D5-001 D4-003 $149,000 $59,600 $208,600 Pipe sags, surcharging manholes Santa Rita 70 8 8 Van Bure n Ave near East Bolivar St D4-007 D4-055 $63,500 $25,400 $88,900 $212,500 $85,000 $297,500
7 West Market at Davis
Overcrossing Bunker doors on Large Trunk line need replacement -- - - -- -- West Market St N Davis Road Ov
ercrossing J2-045 K2-038 $13,350 $5,340 $18,690
8 Cherokee Drive Upsize sewer main -- 1,600 18 24 Cherokee Dr From Seminole Way to Tu
lane Street G3-008 H3-009 $1,920,000 $768,000 $2,688,000 Pipe issue joints, roots -- 380 8 8 Wilgart Way Wilgart Way, E Romie Ln
to FI O4-050 O4-011 $171,000 $68,400 $239,400
Mark Thomas 2017 Findings
Heavy corrosion, reline manhole (Grade:4) -- -- -- -- Near Railroad Between Work St and
Br
unken Ave, near
railroad
N5-003 -- $9,300 $3,720 $13,020
Mark Thomas 2017 Findings
Grease deposits and surcharging, recommend PCC
collar to prevent I/I, new bench and rechannelize
(Grade:10)
-- -- -- -- Los Palos Dr
Near intersection of Los
Pa
los Dr and Fairmont
Dr
O5-019 -- $6,300 $2,520 $8,820
$186,600 $74,640 $261,240
10 Romie Lane Repairs &
Reconfiguration Analysis
Hydrogen Sulfide damage, MH rings and lids need
replacement. Concrete in roadway. Recommended
reconfiguration analysis before repairs.
4,030 18 18 Romie Lane Near Los Palos Drive to
So
uth Main Street O4-007 N3-002 -- $100,000 $100,000
11 King Street Repairs Major pipe sags TP2 1,170 8 10 King St King St, E Market to E Al
isal L5-033 L5-039 $585,000 $234,000 $819,000
Trough pipe missing in MH Lake St -- -- -- C Street On C St, Galindo St to Ma
e Ave -- K8-012 $16,000 $6,400 $22,400
Pipe sags, needs replacement Lake St 820 8 8 Del Monte Ave D el Monte Ave, Mae Av
e to Green St K8-011 J8-020 $369,000 $147,600 $516,600
Total Louise and Van Buren St Repair Project Costs
5 9
The Louis and Van Buren maintenance repairs are alon g the future San Juan Grade CIP. These segments should be replaced if the future San Juan Grade CIP is not constructed in the near term. 12 Del Monte and Mae Repairs
Total Repair Project Costs
East Market and Upstream
of Lake Street Repairs
Total Repair Project Costs
Louise and Van Buren
Street Repair6
Malarin St and Wilgart Way
Repairs
7-9
TABLE 7-4.
CITY OF SALINAS EXISTING CAPITAL IMPROVEMENT PROGRAM (C IP) Project # T itle Description Tributary
Area
Length
(Ft)
Old
Diameter
(in)
New
Diameter
(in)
Street Location Upstream Manhole
Number
Downstream Manhole
Number
Construction Cost
($)
Soft
Cost
($)*
Total Project Cost
($)**
Pipe sags, broken pipe, trough and pipe are gone Lake St 830 6 6 Mae Ave Mae Ave, D St to Del Mo
nte J8-008 K8-013 $332,000 $132,800 $464,800
$717,000 $286,800 $1,003,800
13 Riker Street Repair Pipe has damage and missing sections at manhole -- 20 6 6 Riker Street Lang Street -- M3-035 $8,000 $3,200 $11,200 Pipe has major sags, consider re-alignment of section.
Concrete in roadway. -- 450 8 8 Villa Street At Villa St and Kirkwood Av
e L2-016 K3-016 $231,750 $92,700 $324,450
Both F.I.'s are blown out -- -- -- -- West Market St Near E l Cerrito Market L3-043 L3-010 $32,000 $12,800 $44,800 Pipe sags. Concrete in roadway. -- 840 6 6 Capitol St Capitol St, W Market St to
Archer St L3-013 L3-040 $336,000 $134,400 $470,400
Pipe sags. Concrete in roadway. Replace F.I. with new
manhole. -- 710 6 6 Capitol St Capitol St, Archer St to F.
I. L3-041 F.I $346,150 $138,460 $484,610
$945,900 $378,360 $1,324,260
15 Johnson Place Repairs Pipe damage, sags, spidering under tracks, ongoing backups, MH O5-005 has settled, always surcharging -- 1,470 12 12 Johnson Pl Johnson Pl Abbott Pl to ra
ilroad tracks N5-011 O5-005 $839,200 $335,680 $1,174,880 16 N Main St Hwy 101
Underpass Bunker Repair
Bunker damage to pipe, pipe missing at bunker on
both sides, clogging -- 50 10 10 N Main St N Main St at Hwy 101 J4-012 J4-013 $25, 000 $10,000 $35,000 17 Donner Way Pipe damages, sags, etc. Carpenter Hall 280 8 8 Donner Wa y T ruckee Way to Em
erald Dr G6-037 G6-060 $126,000 $50,400 $176,400
18 San Miguel Ave Repair Pipe Damage; broken pipe 10-feet from manhole -- 10 8 8 Pa jaro St Pajaro St and San Mi
guel 04-025 O3-038 $4,500 $1,800 $6,300
Upsize sewer main -- 2,100 8 12 Noice Dr From Chaparral Street to
East Laurel Drive G4-015 H4-011
Reconstruct manhole -- -- -- -- E Laurel Dr East Laurel Drive near N Main Street H4-012 --
New sewer main -- 60 -- 12 E Laurel Dr East Laurel Drive to No
rth Main Street H4-006 H4-001
Upsize sewer main -- 3,300 12 15 Tyler Street West Laurel Drive down to
HWY 101 H3-023 I3-001
Upsize sewer main Carpenter Hall 2,700 12 15 Natividad Rd From near Sausal Drive to
East Alvin Drive G6-002 H6-003
Weir Construction Carpenter Hall -- -- -- Natividad Rd East Alvin Drive H6-003 -- Carpenter Hall 3,600 15 18 Natividad Rd East Alvin Drive to near Ea
st Laurel Drive H6-003 I5-007
Carpenter Hall 305 12 15 Off of Sherwood Dr
From Sherwood Drive
to
ward East Bernal
Drive
J5-003 J5-005
Carpenter Hall 2,000 15 18 Parallel to E Bernal
Dr and N Main St
From near Sherwood Dr
to
Santa Clara Ave J5-005 J4-010
-- 2,400 15 21 Natividad Rd East Alvin Drive to
Pa
checo St H6-003 I5-011
-- 5,000 15 24 Natividad Rd to Sherwood Park on
Ea
st Bernal Drive I5-011 J4-022
-- 1,100 21 30 Easement Portion along Alpine Dr J4-022 J4-01 1 -- 620 21 30 J4-011 K4-002
Total Repair Project Costs
14 $3,400,000 $4,760,000
West Market Street Repairs
Under Highway 101
$9,120,000Alternative Natividad
Consolidation Upsize sewer main
Upsize sewer main
$6,090,000 $2,436,000 $8,526,000
20 $1,360,000Noice Drive/Tyler Street19
$
3,648,000 $12,768,000
Natividad Rd
Total Repair Project Costs
7-10
TABLE 7-4.
CITY OF SALINAS EXISTING CAPITAL IMPROVEMENT PROGRAM (C IP) Project # T itle Description Tributary
Area
Length
(Ft)
Old
Diameter
(in)
New
Diameter
(in)
Street Location Upstream Manhole
Number
Downstream Manhole
Number
Construction Cost
($)
Soft
Cost
($)*
Total Project Cost
($)**
Pipe Sags, replace F.I. with new manhole -- 130 8 8 Acacia Circle North W Acacia St F.I. N3-039 $74,500 $29,800 $104,300 Pipe Sags -- 280 8 8 Woodside Dr Woodside Dr, Teakwood
Pl to Riker St O3-016 O3-015 $126,000 $50,400 $176,400
Pipe Sags -- 490 8 8 Bautista Dr Bautista Dr, W Romie
Ln
to Orange Dr N3-014 N3-060 $220,500 $88,200 $308,700
Pipe issue joints, roots, offsets, replace F.I. with new manhole -- 230 8 8 Bautista Dr Bautista Dr, F.I to W
Ac
acia F.I N3-029 $119,500 $47,800 $167,300
$540,500 $216,200 $756,700
Pipe issue, joints, replace F.I. with new manhole -- 69 0 6 6 Comanche Way Shawnee Way to Ch
erokee Dr F.I. G3-010 $292,000 $116,800 $408,800
Pipe issue joints, roots, replace F.I. with new manho le -- 490 8 8 Polk St Polk St, Monroe St to W La
urel Dr F.I. I3-045 $236,500 $94,600 $331,100
Pipe sags -- 640 8 8 N 1st St N 1st St, Boeing Ave, W
Cu
rtis St H4-061 H4-054 $288,000 $115,200 $403,200
$816,500 $326,600 $1,143,100
23 Sherwood Dr Repairs Pipe cracks at 220-ft mark downstream from K4-052.
Obstruction (possibly old water line) in K4-076 Lake St 840 12 12 Sherwood Dr Near Sioux Dr to E Ro
ssi St K4-052 K4-076 $486,400 $194,560 $680,960
Pipe sags, broken pipe -- 450 10 10 Easement E Laurel Dr at 105 Or
egon St K7-011 K7-014 $225,000 $90,000 $315,000
Pipe sags -- 1,080 8 8 Williams Rd Williams Rd, E Market St
to Quilla St L7-009 M7-006 $486,000 $194,400 $680,400
$711,000 $284,400 $995,400
25 Hoover Street Repair F.I. repair blown out Santa Rita -- -- -- Hoover Street 18 8 5 Hoover Street -- -- $16,000 $6,400 $22,400 Mark Thomas 2017 Findings
Exposed aggregate & heavy corrosion,fiberglass
peeling, weld cover, recommend reline manhole, new
bench, and rechannelize (Grade:10) (O4-001);
Welded/broken cover, recommend new frame & cover
(Grade:10), (O4-002); Pipe d/D 0.85 (Grade: 1)
-- -- -- -- Katherine Ave Katherine Ave and
Al
ameda Ave O4-001 O4-002 $16,800 $6,720 $23,520
Mark Thomas 2017 Findings
Corrosion, broken cover, rechannel, needs new
manhole (Grade:10)
-- -- -- -- Pajaro St Pajaro St near Katherine
Ave O4-006 NA $14,600 $5,840 $20,440
$31,400 $12,560 $43,960
27 Wood Street
Reconfiguration Analysis
Pipe sags, always plugs, can't CCTV
Entire area needs reconfiguration Lake St 1,820 -- -- Easement Between Wood and Ro
osevelt Street L5-029 L5-034 -- $50,000 $50,000
-- CCTV Program CCTV inspection of 20% (approximately 58 miles) of the collection system each year All -- -- -- -- -- -- -- -- $9,392,000 $9,392,000 -- Inflow/Infiltration
Evaluation
Conduct full I/I evaluation of the entire collection
s
ystem (during significant wet weather year) and
update the sewer model
All -- -- -- -- -- -- -- -- $140,000 $140,000
Coat: $432,000 Coat: $172,800 Coat: $604,800
New Manhole: $1,728,000 New Manhole: $691,200 New Manhole: $2,419,200 Inspection Port: $4,910,500 Inspection Port: $1,964,2 0 0 Inspection Port: $6,874,700 New Manhole: $22,448,000 New Manhole: $8,979,200 New Manhole: $31,427,200 $59-$90 millionEXISTING SEWER PROJECT CIP TOTAL COSTS
Total Repair Project Costs
Total Repair Project Costs
-- --
-- --
--
Brick Manhole Inspection &
Coat/New Manhole
Replacement
Inspect and replace brick manholes
(108 based on field survey and City input) All -- -- -- -- -- --
Flushing Inlet (Cleanout)
Inspection & Port/New
Manhole Replacement
Inspect and replace flushing inlets/cleanouts
(1,403 based on City GIS) All -- --
Acacia, Bautista, Woodside
Repairs21
-- -- --
*Soft costs include a 40% escalation of the construct ion costs for planning, engineering, CM, legal/admin. **All CIP costs are expressed in May 2022 dollars, using McGraw-Hill ENR Construction Cost Index of 13004, and will need to be escalated to the year or years scheduled for the work.
East Laurel and Williams
Repairs24
Total Repair Project Costs
Total Repair Project Costs
26 Katherine Ave & Pajaro St
Repairs
22 Comanche, Polk, and North
First Repairs
7-11
TABLE 7-5.
CITY OF SALINAS EXISTING LIFT STATIONS CAPITAL IMPROVEMENT PROGRAM (CIP) Project # Title Description Tributary
Area (Acres)
PHDW
Flow
(gpm)
Firm
Capacity Street Location Upstream Manhole
Number
Downstream Manhole
Number
Construction
Cost
($)
Soft
Cost
($)*
Total Project
Cost
($)**
1 Lake Street Lift Station Full lift station replacement/relocation, see cutsheet for summary 4,108 6,375 -13% 146 East Rossi
Street
Intersection of E Lake St
and E Rossi St across
from Monterey County
Housing Alliance
K4-022 K4-019 9,500,000 3,800,000 13,300,000
2 Santa Rita Lift Station Full lift station replacement, see cutsheet for summary 348 670 112% 2021 Sucre Court Behind the parking lot of Salinas Valley Motel D4-019 -- 3,500,000 1,400,000 4,900,000 3 Spicer Lift Station Full lift station replacement, see cutsheet for summary 79 99 107% 59 Spicer St On Spicer street near A & S Metals N5-009 N5-007 2,200,000 880,000 3,080,000
4 Mill Lake Lift Station Full lift station replacement, see cutsheet for summary 43 132 287% 81 Gardenia Dr Off of Heather Circle J4-020 I3-001 2,750,000 1,100,000 3,850,000 5 Carpenter Hall Lift
Station
Lift station rehabilitation, see cutsheet for
summary 508 1,226 31% 516 North Main St Behind the Coast Auto Insurance parking lot J4-011 K4-002 1,050,000 420,000 1,470,000 6 De La Torre Lift
Station
Full lift station replacement, see cutsheet for
summary 10 7 4845% 1200 De La Torre
St
Across De La Torre St
from Inns of California
Salinas
O7-001 N7-009 1,200,000 480,000 1,680,000
7 Vista Nueva Lift
Station
Full lift station replacement, see cutsheet for
summary 6 41 408% 704 Garner Ave Off Garner Ave near
Natividad Creek J7-034 J7-014 2,200,000 880,000 3,080,000 8 Harkins Road Lift
Station
Full lift station replacement, see cutsheet for
summary 146 135 175% 1200 Harkins Rd
Intersection of Dayton St
and Harkins Rd Q6-001 Q6-009 1,300,000 520,000 1,820,000 9 Las Casitas Lift
Station
Lift station rehabilitation, see cutsheet for
summary 38 137 189% 721 Las Casitas Dr
Near intersection of
Ranchero Dr and Las
Casitas Dr
I7-001 -- 650,000 260,000 910,000
10 TP2 Lift Station Full lift station replacement, see cutsheet for summary 136 279 99% 650 Elvee Dr
Across Alisal Creek from
Fleet Service Center N5-006 N5-022 2,500,000 1,000,000 3,500,000 11 Airport Lift Station Lift station rehabilitation, see cutsheet for summary 584 60 960% 730 La Guardia St
South west corner of the
Ramco Enterprise LP
parking lot
O8-004 O8-005 800,000 320,000 1,120,000
38,710,000EXISTING LIFT STATION CIP TOTAL PROJECT COSTS *Soft costs include a 40% escalation of the construction costs for planning, engineering, CM, legal/admin. **All CIP costs are expressed in May 2022 dollars, using McGraw-Hill ENR Construction Cost Index of 13004, and will need to be escalated to the year or years scheduled for the work. 7-12
TABLE 7-6.
CITY OF SALINAS FUTURE CAPITAL IMPROVEMENT PROGRAM (CIP) Title Description Tributary
Area
Length
(Ft)
Old
Diameter
(in)
New
Diameter
(in)
Street Location Upstream Manhole
Number
Downstream Manhole
Number
Construction
Cost
($)
Soft
Cost
($)*
Total Project
Cost
($)**
San Juan Grade Upsize sewer main Santa Rita 3,800 8 and 10 12 San Juan Grade Road From Russell Rd to Van Buren Ave C5-008 D4-055 $2,370,000 $948,000 $3,318,000
-- 240 18 24 Tulane Street Between Cherokee Dr
and US HWY 101 H3-009 H3-013
-- 1,700 24 30 N Davis Rd HWY 101 to Calle del
Adobe H3-013 H2-002
-- 3,400 30 32 Parallel to N Davis Rd
Calle del Adobe to
intersect with N Davis
Rd near Rossi Rico
Parkway
H2-002 J2-047
West Laurel Drive Upsize sewer main -- 1,550 12 15 W Laurel Dr From N Main St to near Laurel Park H4-001 H3-023 $1,020,000 $408,000 $1,428,000 Victor Street Upsize sewer main -- 1,600 15 18 Victor St From Ashby Way to W Rossi St J3-012 J2-007 $1,250,000 $500,000 $1,750,000
Lake St 2,025 10 15 Freedom Parkway From Estrella Way to N Sanborn Rd J9-005 J9-001
Lake St 2,725 12 18 Freedom Parkway From N Sanborn Rd to Nogal Dr J9-001 I8-013
Lake St 230 18 21 Natividad Creek Park
Crossing Freedom
Parkway to Natividad
Creek Park
H8-002 H8-004
Carpenter Hall 3,800 24 27 Natividad Creek Park
Natividad Creek Park to
Twin Creeks Golf
Course
H8-004 I7-005
-- 5,400 15 18 E Alisal St From Bardin Rd to
Williams Rd M8-010 M7-009
Part in TP2 2,200 18 21 E Alisal St From Williams Rd to S Sanborn Rd M7-009 M6-012
-- 1,300 12 15 Abbott St From Harris Rd Q7-001 Q7-004
-- 850 12 15 Abbott St To Harkins Rd P6-015 P6-006
-- 700 15 18 Harkins Rd From Abbot St toward
Schilling Pl P6-006 after P6-003
(no City ID)
$1,836,000
$768,000
$2,312,000Upsize sewer mainEast Alisal Street
North Davis Road
Freedom Parkway Upsize sewer main
Upsize sewer main $8,430,000 $11,802,000$3,372,000
$1,312,000$3,280,000 $4,592,000
$2,688,000
$6,426,000Upsize sewer mainNatividad Creek Park $4,590,000 $5,780,000
Abbott Street Upsize sewer main $1,920,000
$8,092,000
7-13
TABLE 7-6.
CITY OF SALINAS FUTURE CAPITAL IMPROVEMENT PROGRAM (CIP) Title Description Tributary
Area
Length
(Ft)
Old
Diameter
(in)
New
Diameter
(in)
Street Location Upstream Manhole
Number
Downstream Manhole
Number
Construction
Cost
($)
Soft
Cost
($)*
Total Project
Cost
($)**
Increase Overflow
Elevation TP2 -- -- 65.09 ft
(elevation) S Sanborn Rd S Sanborn at E Alisal St -- M6-012 -- 4,365 18 21 S Sanborn Rd From E Alisal St to
Pellet Ave M6-012 O6-006
-- 500 21 24 S Sanborn Rd From Pellet Ave to
Industrial St O6-006 O6-008
-- 1,500 24 27 S Sanborn Rd From Industrial St to
near Abbott St O6-008 O5-002
$48,468,000
*Soft costs include a 40% escalation of the construction costs for planning, engineering, CM, legal/admin. **All CIP costs are expressed in May 2022 dollars, using McGraw-Hill ENR Construction Cost Index of 13004, and will need to be escalated to the year or years scheduled for the work. $2,392,000
Upsize Sewer Main
South Sanborn Road $5,980,000 $8,372,000
7-14
Sewer System Management Plan – Revision 02
Appendix 8D
City of Salinas
May 2025
City of Salinas Capital Projects
Last Updated 3/7/25: Projects Identified as Planned are contingent on 2025 Prop 218 Funding which had not been approved at the time the SSMP was developed.
Lift Stations
Ranking Title Description Project
Status
Source of
Funding
1 Lake Street Lift
Station
Full lift station
replacement/relocation
Planned for
Completion
2029
Sewer Enterprise
Fund
2 Santa Rita Lift
Station Full lift station replacement
Planned for
Completion
2029
Sewer Enterprise
Fund
3 Spicer Lift Station Full lift station replacement
Planned for
Completion
2030
Sewer Enterprise
Fund
4 Mill Lake Lift
Station Full lift station replacement
Planned for
Completion
2029
Sewer Enterprise
Fund
5 Carpenter Hall Lift
Station Lift station rehabilitation
Planned for
Completion
2030
Sewer Enterprise
Fund
6 De La Torre Lift
Station Full lift station replacement
Planned for
Completion
2032
Sewer Enterprise
Fund
7 Vista Nueva Lift
Station Full lift station replacement
Planned for
Completion
2029
Sewer Enterprise
Fund
8 Harkins Road Lift
Station Full lift station replacement
No Funding
Currently for
project
Sewer Enterprise
Fund
9 Las Casitas Lift
Station Lift station rehabilitation
No Funding
Currently for
project
Sewer Enterprise
Fund
10 TP2 Lift Station Full lift station replacement
No Funding
Currently for
project
Sewer Enterprise
Fund
Sewer System Management Plan – Revision 02
Appendix 8D
City of Salinas
May 2025
11 Airport Lift Station Lift station rehabilitation
Planned for
Completion
2032
Sewer Enterprise
Fund
Pipelines and Manholes
Ranking Title Description Summary Project Status Source of Funding
1 Cesar Chavez
Park
Upsize sewer main & section of
new sewer main.
Planned for
Completion
2029
Sewer Enterprise
Fund
Development
Fees
2 Upper Carr Lake
Repairs Manhole Repairs
Planned for
Completion
2026
Sewer Enterprise
Fund
3 Upstream TP2
Diversion Weir Construction
Planned for
Completion
2028
Sewer Enterprise
Fund
4 Northridge Mall
Upsize sewer main and sewer
main realignment
Planned for
Completion
2027
Sewer Enterprise
Fund
Development
Fees
5 East Market and
Upstream of Lake
Street Repairs
Manhole Repairs, repairs to
broken pipe
No Funding
Currently for
project
Sewer Enterprise
Fund
6 Louise and Van
Buren Street
Repair
Repair pipe sags and surcharging
manhole
Planned for
Completion
2033
Sewer Enterprise
Fund
7 West Market at
Davis
Overcrossing
Bunker doors on Large Trunk
line need replacement
In Progress
Under
Construction
Spot Repair
Project
ARPA Funded
8 Cherokee Drive Upsize sewer main
Planned for
Completion
2028
Sewer Enterprise
Fund
Development
Fees
Sewer System Management Plan – Revision 02
Appendix 8D
City of Salinas
May 2025
9 Malarin St and
Wilgart Way
Repairs
Pipe joint repairs and manhole
repairs
No Funding
Currently for
project
Sewer Enterprise
Fund
10 Romie Lane
Repairs &
Reconfiguration
Analysis
Hydrogen Sulfide damage, MH
rings and lids need replacement.
Concrete in roadway.
Recommended reconfiguration
analysis before repairs.
Planned for
Completion
2032 Sewer Enterprise
Fund
11 King Street
Repairs Major pipe sags
No Funding
Currently for
project
Sewer Enterprise
Fund
12 Del Monte and
Mae Repairs Pipe sags and manhole repairs
In Progress
Under
Construction
Spot Repair
Project
ARPA Funded
13 Riker Street
Repair
Pipe has damage and missing
sections at manhole
In Progress
Under
Construction
Spot Repair
Project
ARPA Funded
14 West Market
Street Repairs
Pipe sags, F. I. s are blown out,
possible realignment
Planned for
Completion
2026
Sewer Enterprise
Fund
15 Johnson Place
Repairs
Pipe damage, sags, spidering
under tracks, ongoing backups,
MH O5-005 has settled, always
surcharging
No Funding
Currently for
project
Sewer Enterprise
Fund
16 N Main St Hwy
101 Underpass
Bunker Repair
Bunker damage to pipe, pipe
missing at bunker on both sides,
clogging
In Progress
Under
Construction
Spot Repair
Project
ARPA Funded
17 Donner Way Pipe damage, sags, etc.
In Progress
Under
Construction
Spot Repair
Project
ARPA Funded
Sewer System Management Plan – Revision 02
Appendix 8D
City of Salinas
May 2025
18 San Miguel Ave
Repair
Pipe Damage; broken pipe 10-
feet from manhole
In Progress
Under
Construction
Spot Repair
Project
ARPA Funded
19 Noice Drive/Tyler
Street
Upsize sewer mains and manhole
repairs
Planned for
Completion
2033
Sewer Enterprise
Fund
Development
Fees
Outside
of
SSMPU
identified
projects
Villa Street/Wilson Pipe Repair
In Progress
Under
Construction
Spot Repair
Project
ARPA Funded
20 Natividad Rd Upsize sewer mains and weir
construction
No Funding
Currently for
project
Sewer Enterprise
Fund
Development
Fees
21 Acacia, Bautista,
Woodside Repairs
Pipe sags and new manhole, joint
repairs
No Funding
Currently for
project
Sewer Enterprise
Fund
22 Comanche, Polk,
and North First
Repairs
Pipe sags manhole replacement,
joint repairs
No Funding
Currently for
project
Sewer Enterprise
Fund
23 Sherwood Dr
Repairs
Pipe cracks at 220-ft mark
downstream from K4-052.
Obstruction (possibly old water
line) in K4-076
No Funding
Currently for
project
Sewer Enterprise
Fund
24 East Laurel and
Williams Repairs
Pipe sags and broken pipe
No Funding
Currently for
project
Sewer Enterprise
Fund
25 Hoover Street
Repair F.I. repair blown out
No Funding
Currently for
project
Sewer Enterprise
Fund
26 Katherine Ave &
Pajaro St Repairs
New manholes
No Funding
Currently for
project
Sewer Enterprise
Fund
Sewer System Management Plan – Revision 02
Appendix 8D
City of Salinas
May 2025
27 Wood Street
Reconfiguration
Analysis
Pipe sags, always plugs, can't
CCTV, Entire area needs
reconfiguration
No Funding
Currently for
project
Sewer Enterprise
Fund
Future Projects (contingent of future development)
Title Description Summary Project Status Source of Funding San Juan Grade Upsize sewer main
Planned for Completion
2029
Sewer Enterprise
Fund Development
Fees
North Davis Road Upsize sewer main Planned for Completion 2030
Sewer Enterprise
Fund Development
Fees
West Laurel Drive Upsize sewer main
No Funding Currently
for project
Sewer Enterprise
Fund Development
Fees
Victor Street Upsize sewer main
No Funding Currently
for project
Sewer Enterprise
Fund Development
Fees
Freedom
Parkway
Upsize sewer main
Planned for Completion
2029
Sewer Enterprise
Fund Development
Fees
Natividad Creek
Park
Upsize sewer main
Planned for Completion
2027
Sewer Enterprise
Fund Development
Fees
East Alisal Street
Upsize sewer main
Planned for Completion
2029
Sewer Enterprise
Fund Development
Fees
Abbott Street Upsize sewer main
Planned for Completion
2026
Sewer Enterprise
Fund Development
Fees
South Sanborn
Road
Increase overflow elevation and
upsize sewer main
Planned for Completion
2034
Sewer Enterprise
Fund Development
Fees
Sewer System Management Plan – Revision 02
Appendix 10A
City of Salinas
May 2025
Appendix 10A Cover Sheet – SSMP Audit Data and Records Request Template
SSMP AUDIT DATA & RECORDS REQUEST
A. SSMP ADMINISTRATIVE YES LOCATED
WHERE? NO N/A COMMENTS
A1 a. Has your agency enrolled in the State-wide GWDR and designated the responsible or authorized representative (LRO)?
b. Provide a copy of the SSMP Certification in CIWQS.
c. Provide a copy of the CIWQS print-out for all LROs and Data Submitters.
d. Provide a copy of your Operational Report(s) from CIWQS. e.
Does the SSMP include a narrative that discusses; summary of plan and associated schedules, sewer system asset overview, updated maps?
A2 a. Has your agency adopted a SSMP?
b. Provide a copy of the SSMP.
c. Provide a copy of the Meeting Minutes for the agency governing body's meeting during which the SSMP was adopted.
A3 a. Does your agency have a copy of the GWDRs available to agency staff? Where is it kept?
A4 a.
How does agency ensure revenues and expenditures related to sanitary sewer system are available to; comply with General Order, fully implement the SSMP, conduct O&M and necessary repairs, ensure proper spill response?
WG SSMP Audit Data Records Request
06/17/2024 Page 1 of 11
SSMP AUDIT DATA & RECORDS REQUEST
B. GOALS YES LOCATED
WHERE? NO N/A COMMENTS
B1 a. Has your agency developed SSMP and Spill reduction goals? b.
Provide documentation that your agency has made progress toward meeting these goals.
C. ORGANIZATION YES LOCATED
WHERE? NO N/A COMMENTS
C1 a. Does your SSMP clearly identify the names and job titles the LROs? C2 a. Does your SSMP have an organizational chart or table showing individual roles and responsibilities for implementation of the SSMP? b. Are names, titles, and telephone numbers provided in this chart or table?
C3 a. Is the chain of communication for reporting Spills included in the SSMP?
b. Are names, titles, and telephone numbers provided in this chain of communication?
WG SSMP Audit Data Records Request
06/17/2024 Page 2 of 11
SSMP AUDIT DATA & RECORDS REQUEST
D. LEGAL AUTHORITY YES LOCATED
WHERE? NO N/A COMMENTS
D1 a.
Provide the sanitary sewer system use ordinances, service agreements, or other legally binding procedures or documents, which demonstrates the agency's legal authority:
b. Prohibit illicit discharges
c.
Collaborate w/ Stormwater Agencies for sewer spill response and prevent cross connections of sanitary sewer and storm sewer infrastructure.
c. Require that sewers and connections be properly designed and constructed
d. Ensure access for maintenance, inspection, or repairs for portions of the lateral owned or maintained by the Public Agency e. Limit the discharge of fats, oils, and grease and other debris that may cause blockages and/or sewer spills
f. Enforce any violation of its sewer ordinances
E. OPERATIONS AND MAINTENANCE (O&M) YES LOCATED
WHERE? NO N/A COMMENTS
E1 a. Provide the following documents:
b. An updated map of the agency's sanitary sewer system and storm drain system.
c. A schedule for maintenance and cleaning of the sanitary sewer system.
WG SSMP Audit Data Records Request
06/17/2024 Page 3 of 11
SSMP AUDIT DATA & RECORDS REQUEST
d. How do O&M and R&R schedules enhance System Resilience? e. Documentation for maintenance and cleaning of the sanitary sewer system.
f. Documentation for scheduled and conducted activities, such as work orders and/or reports and invoices from contractors. g. The O&M contract if the agency's collection system is operated and maintained by a contract operations firm.
h. The agency's Rehabilitation and Replacement Plan
i. » Summary of the agency's CCTV program and schedule.
Include samples of inspections and summary of findings. j. » List of current and planned projects
k. » Time schedule for planned projects
l. » Schedule for developing the funds needed for rehabilitation and replacement projects
m. Standard Operating Procedures for Sewer System Operations and Maintenance activities.
n.
Training records for staff operations and maintenance activities and contractor operations and maintenance activities. Training records for CIWQS reporting, Spill volume estimation, Spill response training.
WG SSMP Audit Data Records Request
06/17/2024 Page 4 of 11
SSMP AUDIT DATA & RECORDS REQUEST
o. » All applicable licenses and certifications required for agency or contract staff. Provide documents stating this requirement. p. Assessment of O&M Staff "Core Competencies" (Skills, Knowledge and Abilities)
q. Equipment and replacement part inventories, including identification of critical replacement parts.
r.
» If critical replacement parts are not kept in stock, identify and provide method in which these parts are acquired when needed (List of emergency contractors and/or suppliers). s. » If critical replacement parts are not kept in stock, provide applicable mutual aid agreements.
q. Equipment and replacement part inventories, including identification of critical replacement parts.
r.
» If critical replacement parts are not kept in stock, identify and provide method in which these parts are acquired when needed (List of emergency contractors and/or suppliers). s. » If critical replacement parts are not kept in stock, provide applicable mutual aid agreements.
F. DESIGN & PERFORMANCE PROVISIONS YES LOCATED
WHERE? NO N/A COMMENTS
F1 a. Provide the following documents:
b. Design and construction standards and specifications for:
c. » the installation of new sanitary sewer systems
WG SSMP Audit Data Records Request
06/17/2024 Page 5 of 11
SSMP AUDIT DATA & RECORDS REQUEST
d. » pump stations and other appurtenances specific to the agency's collection and conveyance system
e. » the rehabilitation and repair of existing sanitary sewer systems
f.
Procedures and standards for inspecting and testing the installation of new sewers, pumps, and other appurtenances specific to the agency's collection and conveyance system and for rehabilitation and repair projects.
WG SSMP Audit Data Records Request
06/17/2024 Page 6 of 11
SSMP AUDIT DATA & RECORDS REQUEST
G. SPILL EMERGENCY RESPONSE PLAN YES LOCATED
WHERE? NO N/A COMMENTS
G1 a. Provide the agency's Spill Emergency Response Plan b.
Notification procedures ensuring that the primary responders, regulatory agencies, and potentially affected entities are informed of all Spills in accordance with the Monitoring and Reporting Program, Order No. 2022-0103.
c. A program to ensure an appropriate response to all spills. d.
Procedures to ensure that appropriate staff and contractor personnel are aware of and follow the Spill Emergency Response Plan and are appropriately trained.
e. Procedures to address emergency operations, such as traffic and crowd control and other necessary response activities.
f. Procedures to address spill volume estimation.
g.
A program to ensure that all reasonable steps are taken to contain and prevent the discharge of untreated and partially treated wastewater to waters of the United States.
h.
A program to ensure that all reasonable steps are taken to minimize or correct any adverse impact on the environment resulting from the Spills, including such accelerated or additional monitoring as may be necessary to determine the nature and impact of the discharge.
i.
Plan to coordinate with storm drain agencies and other impacted utilities in the event of a Spill. Plan to conduct Post Spill Assessments.
WG SSMP Audit Data Records Request
06/17/2024 Page 7 of 11
SSMP AUDIT DATA & RECORDS REQUEST
H. SEWER PIPE BLOCKAGE CONTROL PROGRAM YES LOCATED
WHERE? NO N/A COMMENTS
H1 a. Public Education and Outreach Program for pipe blocking substances. b. Disposal facilities for pipe blocking substances.
c. Ordinance demonstrating the agency's legal authority to prohibit discharges to the sewer system and prevent spills and blockages. d.
Requirements to install grease removal devices, design standards for these devices, maintenance requirements, BMPs, recordkeeping and reporting requirements.
e. Ordinance demonstrating the agency's legal authority to prohibit FOG discharges to the system and inspect FOG producing facilities. f. Evidence of FOG Control Program inspection and enforcement activities.
g. Documentation of hot spots in the collection system, which are caused by FOG.
I. SYSTEM EVALUATION, CAPACITY ASSURANCE, AND CIP YES LOCATED WHERE? NO N/A COMMENTS
I1 a. Provide procedures to evaluate the sanitary sewer system assets. b. Percentage of system assessed annually and rationale for this frequency.
WG SSMP Audit Data Records Request
06/17/2024 Page 8 of 11
SSMP AUDIT DATA & RECORDS REQUEST
c.
Provide information that demonstrates condition assessment prioritizes areas that: 1) Have high level of environmental consequences if vulnerable to failure or are deficient for any reason; 2) Are located in or within the vicinity of surface waters, steep terrain, high groundwater elevations, and environmentally sensitive areas; 3) Are within the vicinity of a receiving water with a bacterial-related impairment on the most current Clean Water Act section 303(d) List
d.
Provide information demonstrating system is assessed using visual observations, video surveillance and/or other comparable system inspection methods.
e.
Provide information demonstrating corrective actions for areas that may contribute to exiting of sewage from the system which can reasonably be expected to discharge into a water of the State. f.
Provide information that demonstrates you have identified system assets vulnerable to direct and indirect impacts of climate change, including but not limited to: sea level rise; flooding and/or erosion due to increased storm volumes, frequency, and/or intensity; wildfires; and increased power disruptions
g.
Provide analysis and procedures to identify system components that are experiencing or contributing to spills caused by hydraulic deficiency and/or limited capacity, including procedures to identify the appropriate hydraulic capacity of key system elements for:
• Dry-weather peak flow conditions that cause or contributes to spill events;
• The appropriate design storm(s) or wet weather events that causes or contributes to spill events;
• The capacity of key system components; and
• Identify the major sources that contribute to the peak flows associated with sewer spills.
WG SSMP Audit Data Records Request
06/17/2024 Page 9 of 11
SSMP AUDIT DATA & RECORDS REQUEST
h.
Information that demonstrates the capacity assessment considers:
• Data from existing system condition assessments, system inspections, system audits, spill history, and other available information;
· Capacity of flood-prone systems subject to increased infiltration and inflow, under normal local and regional storm conditions; · Capacity of systems subject to increased infiltration and inflow due to larger and/or higher-intensity storm events as a result of climate change;
· Increases of erosive forces in canyons and streams near underground and above- ground system components due to larger and/or higher-intensity storm events;
· Capacity of major system elements to accommodate dry weather peak flow conditions, and updated design storm and wet weather events; and
· Necessary redundancy in pumping and storage capacities. i.
Demonstrate how corrective actions are prioritized based on these condition assessments based on the severity of the consequences of potential spills.
j.
Capital Improvement Plans: based on the results of these condition assessments provide the following:
1) project schedules, including completion dates for all rehabilitation and replacement projects or CIP;
2) Internal and External project funding sources for each project; 3) Information demonstrating coordination between operations and maintenance staff, engineering staff, and consultants during the planning, design and construction of CIP.
If other utility agencies are impacted, document coordination efforts.
WG SSMP Audit Data Records Request
06/17/2024 Page 10 of 11
SSMP AUDIT DATA & RECORDS REQUEST
J. MONITORING, MEASUREMENT & PROGRAM MODIFICATIONS YES LOCATED WHERE? NO N/A COMMENTS
J1 a. Adaptive Management strategies
b. · Provide relevant information, including audit findings, to establish and prioritize appropriate Plan activities;
c. · Provide relevant information demonstrating the implementation and measuring the effectiveness of each Plan Element;
d. · Provide relevant information demonstrating the success of the preventive operation and maintenance activities;
e.
· Provide relevant information demonstrating update of plan procedures and activities, as appropriate, based on results of monitoring and performance evaluations;
f. Identification of Spill trends.
K. SSMP PROGRAM AUDITS YES LOCATED
WHERE? NO N/A COMMENTS
K1 a. Provide historical SSMP Program Audit Reports.
L. COMMUNICATION PROGRAM YES LOCATED
WHERE? NO N/A COMMENTS
L1 a. Provide the agency's Communication Program and evidence of its implementation.
WG SSMP Audit Data Records Request
06/17/2024 Page 11 of 11
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-089, Version: 1
2024 Annual Comprehensive Financial Report
Approve a Resolution receiving and accepting the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2024.
City of Salinas Printed on 4/18/2025Page 1 of 1
powered by Legistar™
Page | 1
CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: APRIL 22, 2025
DEPARTMENT: FINANCE
FROM: SELINA ANDREWS, FINANCE DIRECTOR
TITLE: 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT
RECOMMENDED MOTION:
A motion to r eceive the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2024.
EXECUTIVE SUMMARY:
The Annual Comprehensive Financial Report (ACFR) serves as a comprehensive financial document that provides an in -depth account of a government entity's financial performance, position, and cash flows over a specific fiscal year. It provides transparency, accountability, and insight into the City of Salinas’ (City) financial health, enabling stakeholders, including City Council, residents of Salinas, creditors, investors, and other interested parties, to make informed decisions.
BACKGROUND:
The City contracts with an independent certified public accountant to examine the books, records, inventories, and reports of all officers and employees who receive, handle, or disburse public funds each fiscal year (FY) . The FY 202 3-24 audit was performed by Pun and Associates, LLP , an experienced firm that specializes in audit services for California public agencies. The information contained in the ACFR provides detailed financial information which the Salinas community and others can use to better understand the fiscal standing of the City.
In addition, the financial information contained in the document is one element that the credit rating agencies review annually to affix a credit rating for the City’s outstanding debt obligations.
The annual audited financial statements are also required by continuing disclosure agreements for the outstanding bonds issued by the City.
In 2022, the City contracted with Pun and Associates, LLC (Auditors), a firm of Certified Public Accountants licensed to practice in the State of California, to perform the City’s annual independent audit for the Fiscal Years ended June 30, 20 22, June 30, 20 23, and June 30, 20 24, with two one-year options to extend audit services through Fiscal Year ending June 30, 2026.
Page | 2
The ACFR is prepared by the Accounting Division of the Finance Department and represents the culmination of a concerted team effort by the Finance Department staff along with significant involvement of other City Departments. The ACFR is submitted to the City Council for consideration and acceptance, and to provide the residents of Salinas, creditors, investors, taxpayers, and other interested parties an overview of the relevant financial information contained in the ACFR.
Independent Auditor’s Report
The auditor has given the City’s financial statements a “clean” audit opinion for the year ended June 30, 202 4 giving reasonable assurance that the financial statements are “free of material misstatement” (Attachment 1).
Management’s Discussion and Analysis (MD&A)
The MD&A section of the report summari zes for the City on an entity-wide basis and fund type basis. Information is provided in this section with a year -to-year view, explaining how fund balances have changed between fiscal years ending June 30, 2023, and June 30, 2024. Information is also presented on the adopted General Fund budget to actuals and any significant budget adjustments made during FY 2023-24.
Statement of Net Position
The Statement of Net Position serves as a useful indicator of a government’s financial position.
The City had net assets of $241.7 million at fiscal year-end as compared to $245.7 million the prior year, an overall decrease of $4.0 million over the prior fiscal year. The decrease was a result of a variety of factors, including an increase in current liabilities. The largest portion of the net assets, $267.5 million, represents the City’s investment in its capital assets and infrastructure. Restricted assets of $90.0 million are resources that are subject to external restrictions on how they may be used. As of June 30, 2024, unrestricted net position is ($115.4) million compared to ($96.3) million the prior year. This means that future revenues will be needed to make up past revenue shortfalls.
Basic Financial Statements
This section contains basic financial statements, including the “entity -wide” Statement of Net Position for Governmental Funds (such as the General Fund), Proprietary Funds, and the Private Purpose Trust Funds (Fiduciary Funds). The footnotes section provides details on significant items such as the City’s cash and investments (Note 3), its long-term obligations (Certificates of Participation) related to bonded debt (Note 13), the net pension liability for both the City’s miscellaneous and safety pension plans (Note 1 7), and a discussion of the City’s other post - employment benefit plan (Note 18).
Required Supplementary Information
The Schedules of Pension Plan Contributions are provided in this section.
Page | 3
Supplementary Information
This section provides budget to actual information for “major” and “non -major’’ Governmental Funds.
Conclusion
As noted in the auditor’s opinion, the ACFR fairly presents the fiscal year ending June 30, 2024 financial activity for the City of Salinas.
CEQA CONSIDERATION:
Not a Project . The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
The audited financial statements are part of upholding the Council Goal of Operational Efficiencies.
DEPARTMENTAL COORDINATION:
This staff report was coordinated with the City Attorney’s Office and Administration.
FISCAL AND SUSTAINABILITY IMPACT:
There is no direct fiscal impact associated with receiving the report.
Fund
Appropriation
Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
n/a n/a n/a n/a n/a n/a n/a
ATTACHMENTS:
2024 ACFR
Resolution
City of Salinas
California
Basic Financial Statements
Fiscal Year Ended June 30, 2024
This page is intentionally left blank.
Basic Financial Statements
Fiscal Year Ended June 30, 2024
PREPARED BY
THE FINANCE DEPARTMENT
Selina Andrews
Finance Director
AUDITORS
The Pun Group, LLP
Accountants & Advisors
200 E. Sandpointe Avenue, Suite 600
Santa Ana, CA 92707
This page is intentionally left blank.
City of Salinas
Basic Financial Statements
For the Year Ended June 30, 2024
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................................... i Organizational Chart ................................................................................................................................................ vii List of City Officials ............................................................................................................................................... viii
FINANCIAL SECTION
Independent Auditors’ Report ................................................................................................................................ 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ....................... 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .......................................................................................................................... 20 Statement of Activities .............................................................................................................................. 22
Fund Financial Statements:
Governmental Funds:
Balance Sheet ...................................................................................................................................... 28 Reconciliation of the Governmental Funds Balance Sheet to the Government- Wide Statement of Net Position ................................................................................................... 31 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................. 32 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position ........................................................................................ 34
Proprietary Funds:
Statement of Net Position ................................................................................................................... 36 Statement of Revenues, Expenses, and Changes in Fund Net Position .............................................. 38 Statement of Cash Flows ....................................................................................................... ............. 40
Fiduciary Funds:
Statement of Fiduciary Net Position ................................................................................................... 47 Statement of Changes in Fiduciary Net Position ................................................................................ 48
Notes to the Basic Financial Statements ............................................................................................................... 55
City of Salinas
Basic Financial Statements
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Budgetary Information ................................................................................................................................... 135 Budgetary Comparison Schedules
General Fund ........................................................................................................................................... 138 American Rescue Plan Act Special Revenue Fund ................................................................................. 139 Housing and Urban Development Grants Special Revenue Fund ........................................................... 140 Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plans ........................... 141 Schedule of Pension Plan Contributions – Miscellaneous Plan ..................................................................... 142 Schedule of Changes in Net Pension Liability and Related Ratios – City Police Plans ................................ 143 Schedule of Pension Plan Contributions – City Police Plans ........................................................................ 144 Schedule of Changes in Net Pension Liability and Related Ratios – City Fire Plans .................................... 145 Schedule of Pension Plan Contributions – City Fire Plans ............................................................................ 146 Schedule of Changes in Net Pension Liability and Related Ratios – Single Employer Plan......................... 147 Schedule of Pension Plan Contributions – Single Employer Plan ................................................................. 148 Schedule of Changes in Net OPEB Liability and Related Ratios .................................................................. 149 Schedule of OPEB Contributions .................................................................................................................. 150
Supplementary Information:
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet Nonmajor Governmental Funds ............................................................. 153 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds .......................................................................... 154
Nonmajor Special Revenue Funds:
Special Revenue Funds Header
Combining Balance Sheet Special Revenue Funds .......................................................................... 157 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds ....................................................................................... 161
Nonmajor Debt Service Funds:
Debt Service Funds Header
Combining Balance Sheet Nonmajor Debt Service Funds ............................................................... 166 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Debt Service Funds ............................................................................ 168
Nonmajor Capital Projects Funds:
Capital Projects Funds Header
Combining Balance Sheet Nonmajor Capital Projects Funds .......................................................... 173 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Projects Funds ........................................................................ 174 City of Salinas
Basic Financial Statements
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued):
Internal Service Funds:
Description of Internal Service Funds ............................................................................................... 175 Combining Statement of Net Position ............................................................................................... 177 Combining Statement of Revenues, Expenses, and
Changes in Net Position ............................................................................................................... 179 Combining Statement of Cash Flows ................................................................................................ 180
Fiduciary Funds:
Description of Fiduciary Funds ......................................................................................................... 183 Private Purpose Trust Funds:
Combining Statement of Fiduciary Net Position ........................................................................ 185 Combining Statement of Changes in Fiduciary Net Position ..................................................... 186
Custodial Funds:
Description of Custodial Funds ......................................................................................................... 187 Combining Statement of Fiduciary Net Position ............................................................................... 189 Combining Statement of Changes in Fiduciary Net Position ............................................................ 190
General Fund:
Combining Balance Sheet – General, Measure E, & Measure G Funds ........................................... 191 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – General, Measure E, & Measure G Funds .................................................................................................. 192 Budgetary Comparison Schedule - Measure E .................................................................................. 193 Budgetary Comparison Schedule - Measure G ................................................................................. 194
Other Information (Unaudited):
Claims Development – Internal Service Funds – General Liability Insurance ........................................ 196 Claims Development – Internal Service Funds – Workers Compensation Insurance ............................. 198
This page intentionally left blank.
i
March 31, 2025
Honorable Mayor and Members of the City Council
City of Salinas, California
We are pleased to present the City of Salinas ’s (City) Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024. Although formally submitted to the Mayor and City Council (Council), the ACFR is also intended to provide relevant financial information to the residents of Salinas, taxpayers, creditors, investors, and other interested parties.
This letter of transm ittal provides a non-technical summar y of City fina nces, services, achievements, and economic prospects. We ask that readers who wish a more detailed discussion of the City’s financial results refer to the Mana gement’s Discussion & Analysis contained in the Financial Section of the ACFR.
City Administration is responsible for the accuracy of the information contained in this report, the adequacy of its disclosures, and the fairness of its presentation. We believe this ACFR to be complete and reliable in all ma terial respects. To provide a reasonable basis for making this representation, we have establis hed a comprehensive sy stem of internal co ntrols designed to protect City assets from loss, to identify and record transactions accurately, and to compile the information necessary to produce financial statem ents in conformity with generally accepted accounting principles.
The City contracted with The Pun Group, LLP, a firm of Certified Public Accountants licensed to practice in the State of California, to perform the annual independent audit. The auditors expressed an opinion that the City’s fina ncial statements for Fiscal Y ear 2023-2024 (FY 23-24) are fairly stated in conformity with accounting principles generally accepted in the United States. This is the most favorable conclusion and is commonly known as an “unmodi fied” or “clean” opinion. The independent auditors’ report is included in the Financial Section of this report.
In addition, The Pun Group LLP performs an audit of the City’s major pr ogram expenditures of federal funds for compliance with the requirement s described in the U.S. Office of Management and Budget’s OMB Compliance Supplement, and the standards applicable to financial audits contained in Government Auditing Standards is sued by the Comptroller General of the United States. The report of the Single Audit is pub lished separately from this ACFR and, when completed, can be obtained from the City of Salinas’ website at https://www.cityofsalinas.org/Your-Government/Departments/Finance/Annual-Comprehensive- Financial-Reports-ACFR.
ii
This ACFR is organized into two sections:
I. The Introductory Section includes the table of contents, letter of transmittal, listing of elected officials, C ity administrative personnel, and an organization chart delineating organizational structure.
II. The Financial Section includes the Independe nt Auditors’ opinion, the MD&A, the basic financial statements, notes to the financial statements, combining statements of non-major funds, and required supplemental information.
The Reporting Entity and Its Services
In defining the reporting entity, there are no other governmental units over which the City Council has financial accountability. Under new state law, the Salinas Redevelopment Agency, which was a component unit of the City, ceased to exist as of February 1, 2012, and therefore the assets and activities of the dissolved redevelopment agency are reported in a Fiduciary Fund (private purpose trust fund) in the financial statements of the City.
The City was incorporated as a charter City on March 4, 1874 and opera tes under the Council- Manager form of government. The City is governed by a six-member Council elected by districts for four-year alternating terms and a Mayor elected at large for a two-year term. The Council appoints the City Attorney and the City Manager, who is responsible for day-to-day administration of the City under the policy direction of the Council.
The City is the “county seat” of Monterey County and is located in the Central Coast region of California, 17 miles inland from the Monterey Bay, 325 miles north of Los Angeles and 106 miles south of San Francisco. Salinas is a charter City providing all typical City services: Public safety - police and fire, Public Works - maintenance services (streets, lighting, signals, facilities, parks and trees), development and perm it services, current and adva nced planning and traffic and facilities engineering, Library, Recreation and General administrative services. Business-type City services include a Municipal Airport, Industrial Waste system, Sanitary Sewer, Water Utility and a Parking District. The State Department of Finance reports the City’s population at 162,037 as of January 1, 2024. The City FY 2023-24 budget includes 647.50 positions authorized on a full-time equivalent basis.
Three elementary school districts, a unified high school district and several private schools at both the primary and secondary level operate in the City of Salinas. Hartnell College, a State Community College, offers two-year degrees and occupational certificate programs. California State University, Monterey Bay is located less than 15 miles away on the former Fort Ord site.
Graduate studies through Golden Gate University , Monterey Institute of International Studies and Chapman College are available nearby. Also in the area are Moss Landing Marine Laboratory, Monterey College of Law, Stanford University’s Hopkins Marine Station and San Jose State University.
Salinas has extensive health and medical services with two of Monterey County's four hospitals located within the City. The City also offe rs skilled nursing and convalescent homes and residential retirement facilities for seniors, as well as over 220 practicing physicians.
iii
Fire protection and basic and adva nced life support are provided by the City's full-service Fire Department. Advanced life support services are provided by the Fire Department’s paramedic program. The City of Salinas has a Police Department and receives additional support, as required, from the Monterey County Sheriff's Office and other regional, state and federal agencies.
The City's moderate climate encourages year-round use of its 550 plus acres of municipal parks, which include golf courses, tennis courts a nd swimming pools. The Salinas Community Center regularly hosts symphonies, ballets, concerts and conventions. Salinas is host to the annual Steinbeck Festival, the California Rodeo, and the California International Airshow. Salinas has a modern California Sports Comp lex and the National Steinbeck Center. Surrounding Salinas are diverse recreational opportunities including beauti ful beaches and the world famed golf courses of the Monterey Bay Peninsula.
As the retail hub of the Central Co ast, Salinas enjoys a wide selection and diversity in its stores.
Northridge Shopping Center contains over 120 specialty shops and four major department stores – Macy’s, Sears, Best Buy and J.C. Penney. Harden Ranch Plaza includes Wal-Mart, Target, Safeway, specialty stores, restaurants, and bank ing institutions. The Westridge Shopping Center is home to Costco, Wal-Mart, Office Max, Dick’s Sporting Goods and a variety of national chain restaurants. The Salinas Auto Center houses nine local dealers and its retail area hosts Home Depot, Beverages and More (BevMo ), Kohl’s, and other specialty stores. Additionally, Salinas' location allows quick access to the Monterey Peninsula, as well as the San Jose area.
The City utilizes various Boards and Commissions in the conduct of its affairs. Commissions and Committees established by City Ordinance are:
Airport Commission
Library and Community Services Commission
Traffic and Transportation Commission
Planning Commission
Public Art Commission
Measure G Oversight Committee
Measure E Oversight Committee
Boards and Committees established by Resolution of the City Council are:
Police Community Advisory Committee
Grievance Advisory Board
Historical Resources Board
Subcommittees of Council are:
Housing & Land Use Committee
Finance Committee
iv
ECONOMIC CONDITIONS AND FISCAL OUTLOOK
While Salinas Valley continues to show overall positive economic performance, several potential indicators of a future economic weakening have begun. These economic indicators include a slow- down in the local real estate market and unemployment rates. Unemployment rates in the area are expected to continue to increase as corporate layoffs continue to occur. In addition, a tight labor market can also push the unemployment rate up. According to the Anderson forecast, “labor force decline is attributable to reti rements, migration out- of-state, and individu als choosing to spend their time in nonmarket activities, such as child-raising.
The unemployment rate for the county and Salinas Metropolitan 1 area for June 2024 was 5.7%, which was lower than the 5.8% in May 2024 and lower than the prior year unemployment rate of
7.0%. However, the June 2024 Salinas Metropolitan Statistical Area unemployment rate continued to be higher than the unadjusted unemployment rate for the State (5.3%) and the nation (4.1%)2.
The City closed FY 23-24 with a net $9.0 million General Fund surplus due to a variety of factors discussed in the MD&A. General Fund revenues (not including transfers in) increased 3.7% from the prior year. Sales tax revenues remain the la rgest and most consiste nt source of support for General Fund operations, comprising approximately 50.8% of General Fund revenues in FY 23-
24. For FY 23-24, sales tax receipts of $90.9 million were $0.7 million lower than the prior year’s collection. The City’s Measures E and G Sales and Use Tax continued to perform well as the economy rebounds from the effects of COVID-19.
The City also relies heavily on property ta x revenues to support General Fund operations, comprising approximately 21.5% of General Fund revenues in FY 23-24. For FY 23-24, property tax receipts of $38.4 million were $1.3 million higher than the prior year’s collection. Property tax revenues were supported by the continued desirability of the City, its environment, and culture.
In addition to the City’s revenue sources, the Ci ty benefited from the Federal American Rescue Plan Act (ARPA). The Act allocated $51,567,313 to the City over a two-year period. The City has received both payments a nd expended $26.0 mill ion and encumbered $11.3 million at June 30, 2024.
As with most municipalities, serv ices are provided directly by employees to the City’s residents, businesses, and visitors. As a serv ice delivery enterprise, the cost of salaries and benefits are a significant portion of the City’s expenditures. Sa laries are largely dictat ed by regional market forces as evidenced by fierce competition for workforce in the San Francisco Bay Area, and inflationary pressures nationwide. During FY 23-24, the City successfully completed negotiations with seven labor groups. While im portant for consistent delivery of high-quality services for the City, these actions further contribute to the structural deficit between revenues and expenditures.
The City also continues to adjust and prepare for pension employer costs to continue to be a primary expense in conjunction with salaries.
1 State of California, Employment Development Department, Labor Market Information Division 2 Monthly EDD Press Release
v
The City’s pension plans over the past several de cades, like all other CalPERS participants, have experienced changes in actuarial assumptions, demographic changes, and volatile investment returns which have outweighed any positive plan experiences. The outcome of these unfavorable economic and demographic conditions is the creation of unfunded pens ion and Other Post- Employment Benefits (OPEB) obligations for the City. According to the 2023 accounting valuation reports, the net pension liability was $244.3 million and the net OPEB liability was $12.9 million as of June 30, 2023.
To address the escalation in OPEB costs, current and previous Councils have worked to curb cost escalation in Other Post-Employment Benefits (O PEB). In 2020, the City initiated prefunding of retiree healthcare benefits and has since established approximately $11 million in OPEB assets as of June 30, 2024.
For detailed information about the City employees’ retirement plan, please refer to Note 17 of the Notes to Basic Financial Statem ents Section. For detailed info rmation about the City OPEB obligations please refer to Note 18 of the Notes to Basic Financial Statements Section.
Despite revenue constraints a nd increasing costs associated with unfunded federal and state mandates, the City has managed to maintain hi gh service levels and ba lanced budgets through prudent fiscal management.
MAJOR CAPITAL PROJECT INITIATIVES
The City maintains a multi-yea r forecasting model for operating revenues and expenditures and also produces a six-year capital plan. The multi-year forecast is regularly updated to reflect current revenue and expenditure assumptions and is presented to the City Council during the budget process for the next fiscal year.
Major capital asset and infrastructure initiatives we re once again the priority for the fiscal year.
Approximately $18.3 million in City infrastructure and other capital asset improvements and contributions were invested in FY 23-24, in cluding $5.0 million in land acquisition and $2.5 million in equipment. In addition, $9.7 million was invested in construction in progress including, roads, storm drains, park, building improvements, fire apparatus equipment, and City revitalization efforts.
Additional infrastructure improvements are schedul ed in accordance with the City’s approved Capital Improvement Plan and will continue into future years. All of these improvements are funded either through grants, appropriations car ried over from prio r years, and/or new appropriations during the budget development process as approved by City Council policy
Single Audit
As a recipient of federal, state and county funding, the City is responsible for providing assurance that adequate internal controls are in place to ensure compliance with applicable laws and regulations relating to these awar d programs. Internal controls ar e subject to periodic evaluation by management and the City’s external independent auditors.
YL
$VSDUWRIWKH&LW\¶VVLQJOHDXGLWSURFHGXUHVWHVWVDUHSHUIRU PHGWRDVVHVVWKHHIIHFWLYHQHVVRILWV LQWHUQDOFRQWUROVRYHUPDMRUIHGH UDODZDUGSURJUDPVDQGWKH&LW \¶VFRPSOLDQFHZLWKDSSOLFDEOH ODZVDQGUHJXODWLRQVUHODWHGWRWKHVHDZDUGSURJUDPV
$FFRXQWLQJ6\VWHPDQG%XGJHWDU\&RQWURO
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
7KH&LW\PDLQWDLQVEXGJHWDU\FRQWUROVWKURXJK&LW\&RXQFLODGRS WLRQRIDQDQQXDODSSURSULDWLRQ RUGLQDQFH DQG E\ PDLQWDLQLQJ DQ HQFXPEUDQFH DFFRXQWLQJ V\VWHP ([SHQGLWXUHV IRU &LW\ RSHUDWLRQVDQGRWKHUSXUSRVHVLGHQWLILHGLQWKHDQQXDOEXGJHWFDQQRWOHJDOO\H[FHHGWKHEXGJHWHG DPRXQWVDSSURYHGE\WKH&LW\&RXQFLO
$QDQQXDORSHUDWLQJEXGJHWILYH\HDUEXGJHWIRUHFDVWDQGVL[ \HDUFDSLWDOLPSURYHPHQWSODQLV DGRSWHGE\WKH&LW\&RXQFLOFRQVLVWHQWZLWKJHQHUDOO\DFFHSWHG DFFRXQWLQJSULQFLSOHV$OOEXGJHW DSSURSULDWLRQV PXVW EH DSSURYHG E\ &LW\ &RXQFLO GXULQJ WKH ILVFDO \HDU 7KH &LW\ 0DQDJHU LV DXWKRUL]HGWRWUDQVIHUDSSURSULDWLRQVZLWKLQWKHVDPHIXQGLQJVRXUFH$SSURSULDWLRQVDUHYDOLGIRU HDFKILVFDO\HDUDQGODSVHDW\HDUHQG
$FNQRZOHGJHPHQWV
7KHSUHSDUDWLRQRIWKLVUHSRUWZRXOGQRWKDYHEHHQSRVVLEOHZLWKRXWWKHVNLOOHIIRUWDQGGHGLFDWLRQ RI WKH HQWLUH )LQDQFH 'HSDUWPHQW VWDII ,Q DGGLWLRQ VWDII LQ D OO &LW\ GHSDUWPHQWV VKRXOG EH UHFRJQL]HGIRUUHVSRQGLQJVRSRVLWLYHO\WRWKHUHTXHVWVIRUGHW DLOHGLQIRUPDWLRQWKDWDFFRPSDQLHV HDFKDQQXDODXGLW
,Q DGGLWLRQ ZH ZLVK WR H[SUHVV RXU VLQFHUH DSSUHFLDWLRQ WR WKH 0D\RU DQG &LW\ &RXQFLO IRU SURYLGLQJ SROLF\ GLUHFWLRQ DQGD ILUP IRXQGDWLRQ RI VXSSRUW IRU WKH SXUVXLW RI H[FHOOHQFH LQ DOO UHDOPV RI SURIHVVLRQDO HQGHDYRUV HVSHFLDOO\ WKHLU UROH LQ JXLGLQJ WKH &LW\ WR D VHFXUH ILQDQFLDO FRQGLWLRQWKDWDVVXUHVUHVRXUFHVDUHDYDLODEOHWRSURYLGHFRUHVHUYLFHVWRWKHFRPPXQLW\ 5HVSHFWIXOO\VXEPLWWHG
6HOLQD$QGUHZV
)LQDQFH'LUHFWRU
vii
City of Salinas
Organization Chart
YLLL
&LW\RI6DOLQDV
/LVWRI3ULQFLSDO2IILFLDOV
&DUOD9LYLDQD*RQ]DOH] 2UODQGR2VRUQLR
&RXQFLOPHPEHU &RXQFLOPHPEHU
'LVWULFW 'LVWULFW
7RQ\%DUUHUD $QGUHZ 6DQGRYDO
&RXQFLOPHPEHU &RXQFLOPHPEHU
'LVWULFW 'LVWULFW
6WHYH0F6KDQH $QWKRQ\5RFKD
&RXQFLOPHPEHU &RXQFLOPHPEHU
'LVWULFW 'LVWULFW
-LP3LD 'DYLG-DFREV
$VVLVWDQW&LW\0 DQDJHU 3XEOLF:RUNV'LUHFWRU
.ULV WDQ/XQGTXLV W /LV D%ULQWRQ
/LEUDU\DQG&RPPXQLW\ &RPPXQLW\
6HUYLFHV'LUHFWRU 'HYHORS PHQW'LUHFWRU
-RKQ0XUUD\ 6DP.OHPHN
$FWLQJ&KLHIRI3ROLFH )LUH&KLHI
6HOLQD$QGUHZ V 0DULQD+RUWD*DOOHJRV
)LQDQFH'LUHFWRU +XPDQ5HVRXUFHV
'LUHFWRU
.LPEOH\&UDLJ
0D \R U
5HQH0HQGH] &KULVWRSKHU$&DOOLKDQ
&LW\0 DQDJHU &LW\$WWRUQH\
FINANCIAL SECTION
This page intentionally left blank.
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members
of the City Council of the City of Salinas
Salinas, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Salinas, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the basic financial statements , which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting prin ciples generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accept ed in the United States of America (“GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the prep aration and fair presentation of the fi nancial statements in accordance with accounting principles generally accepted in the United Stat es of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate wh ether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
To the Honorable Mayor and Members
of the City Council of the City of Salinas
Salinas, California
2 Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whet her the financial statements as a whole are free from material misstatement, whether due to fraud or error, a nd to issue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with ge nerally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The ri sk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they w ould influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we
exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-re lated matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Sc hedules, Schedules of Changes in Net Pension Liability a nd Related Ratios, Schedules of Proportionate Share of the Net Pension Liability and Related Ratios, Schedules of Pension Contributions, Schedule of Changes in Net OPEB Liability and Related Ratios, and Schedule of OPEB Contributions be presented to supplement the basic financial statements. Such information is the responsibility of mana gement and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the b asic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the inform ation and comparing the information for consistency with management’s responses to our inquiries, the basic financia l statements, and other knowledge we obtained during our audit of the basic financial statements. We do not expr ess an opinion or provide any assurance on the information because the limited procedures do not provide us with su fficient evidence to express an opinion or provide any assurance.
To the Honorable Mayor and Members
of the City Council of the City of Salinas
Salinas, California
3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Comb ining and Individual Fund Statements and Schedules are presented for purposes of additional analysis and are not a re quired part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The informa tion has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information direc tly to the underlying accounting and othe r records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Fund Statements and Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the othe r information included in the annual report. The other information comprises the Introductory Section and the Claims Development for Internal Service Funds Schedules but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basi c financial statements, our responsibility is to read the other information and consider whether a material inconsistenc y exists between the other information and the basic financial statements, or the other information otherwise appears to be materially mi sstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our repor t dated March 31, 2025, on our consideration of the City’s internal control over financia l reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreemen ts and other matters. The purpose of that report is solely to describe the scope of our testing of internal control ove r financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Santa Ana, California
March 31, 2025
4 This page intentionally left blank.
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited)
Fiscal Year Ended June 30, 2024
5 This section of the City of Salinas (City) Annual Comprehensive Financial Report provides an overview of the City’s financial activities for th e fiscal year ended June 30, 2024. Readers are encouraged to consider the information presen ted here in conjunction with the accompanying letter of transmittal, the basic financial statemen ts, and the accompanying notes to the financial statements.
A. FINANCIAL HIGHLIGHTS
On June 30, 2024, the City’s net position (excess of assets over liabilities) was $241.7 million.
Of this amount, $267.5 million is invested in capital assets and restricted assets, which is offset by a deficit of $115.4 million of unrestricted assets.
During the fiscal year ended June 30, 2024, th e City’s total net position decreased by $4 million from $245.7 million to $241.7 million.
During the fiscal year, fund balances i n creased $7.2 million to $182.5 million for governmental funds, of which $182.7 million is either nonspendable, restricted, committed, or assigned, leaving a $(0.2) million as unassigned.
During the fiscal year the General Fund, Meas ure E, and Measure G fund balance increased by $9 million to $94.4 million of which $85.4 m illion is either nonspendable, restricted, committed, or assigned. Unassigned General Fund, Measure E & Measure G fund balance was $10.2 million.
The City’s total capital assets increased $2.9 million from $398.1 million to $401 million.
B. OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements, which is comprised of three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Basic Financial Statements.
The basic financial statements include the City (primary government) and all legally separate entities (component units) for which the g overnment is financially accountable.
This report also contains other supplementary information in addition to the basic financial statements for further information and analysis.
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
6 Government-Wide Financial Statements
The Government-Wide Financial Statements present the financial picture of the City and provide readers with a broad view of the City’s finances. These statements present governmental activities and business-type activities separately and include all assets of the City (including infrastructure) as well as all liabilities (including long-term debt ). Additionally, certain interfund receivables, payables and other interfund activity have been eliminated as prescribed by GASB Statement No.
34. The Statement of Net Position and the Statement of Activities and Changes in Net Position report information about the City as a whole and about its activities. These statements include all assets and liabilities of the City using the accr ual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when cash is received or paid.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, changes in net position may serve as a useful indicator of whether the fi nancial position of the City is improving or deteriorating.
The Statement of Activities and Changes in Net Position presents information showing how the City’s net position changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of timing of related cash flows.
In the Statement of Net Position and the Statement of Activities and Changes in Net Position, we separate the City activities as follows:
Governmental Activities—All of the City’s basic services are reported in this category, including general government, public safety, community development, public works, recreation, and library. Property taxes, sales ta xes, user fees, interest income, franchise fees, state grants and federal grants finance these activities. The City’s insurance programs (health, worker’s compensation, liability and property damage) are accounted for in internal service funds, but are reported as part of governmental activities since these programs are used primarily for governmental activities.
Business-Type Activities—The City charges a fee to customers to cover all or most of the costs of certain services it provides. The Ci ty’s Industrial Wastewater System, Airport, Sanitary Sewer, Permit Service, and Parking District are reported as business-type activities.
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
7 Fund Financial Statements
The Fund Financial Statements provide detailed information about the City’s major funds — not the City as a whole. Some funds are required to be established by State law and by bond covenants.
However, management establishes many other fu nds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other money.
The Fund Financial Statements include statements for each of the three categories of activities – governmental, proprietary and fiduciary. The governmental funds are prepared using the current financial resources measurement focus and modified accrual basis of acc ounting. The proprietary funds are prepared using the economic resources measurement focus and the accrual basis of accounting. The fiduciary funds are agency funds, pension trust funds and private purpose trust funds, which only report assets and liabilities and do not have a measurement focus.
Governmental Funds - The Governmental Funds are used to account for essentially the same functions reported as governmental activities in the Government-Wide Financial Statements. However, unlike the Government-Wide Financial Statements, Governmental Funds Financial Statements focus on current financial resources, which emphasize near-term inflows and outflows of expendable resources as well as balances of expendable resources at the end of the fiscal year. This information is essential in evaluating the City’s near-term financial requirements.
In order to better understand the City’s long-term and short-term requirements, it is useful to compare the City’s Governmental Funds Statements with the governmental activities in the Government-Wide Financial Statements. A reconciliation is provided for the Governmental Fund Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances to facilitate this comparison.
The major governmental funds include the General, Measure E and Measure G Funds, Development Fees Special Revenue Fund, and the Special Construction Assistance Special Revenue Fund, which are reported in detail in the Governmental Fund Financial Statements. All other funds are shown in the aggregate as other non-major governmental funds.
Individual fund data for other non-major gov ernmental funds is provided in the form of supplementary information elsewhere in the report.
Proprietary Funds - The City maintains two types of proprietary funds, enterprise funds and internal service funds. Enterprise funds are used to report the same func tions presented as business-type activities in the Government-Wide Financial Statements. The City uses enterprise funds to account for its Airport, Industrial Wastewater System, Sanitary Sewer, Permit Services and Parking activities. Internal service funds are an accoun ting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its general city insurance operations. Because these services predominantly benefit the governmental rather than business- type activities, they have been included within governmental activities in the Government-Wide Financial Statements.
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
8 Proprietary funds provide the same type of information as the Government-Wide Financial Statements, only in more detail. A ll enterprise funds are presented in detail as major enterprise funds. The internal service fund s are combined into a single aggregated presentation in the proprietary fund financial statem ents. Individual fund data for th e internal serv ice funds is provided in the form of supplementary information elsewhere in the report.
Fiduciary Funds - The City is the trustee, or fiduciary, for certain funds held on behalf of external parties. The City’s fiduciary activities are reported in separate Statements of Fiduciary Net Position. These activities are excluded from the C ity’s other financial statements because the resources of these funds are not available to support the City’s own programs. The City is responsible for ensuring that these funds are used for their intended purpose.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements.
Required Supplementary Information
In addition to the basic financial statements , this report also presents certain Required Supplementary Information including the City’s budgetary comparison schedules for the General, Measure E and Measure G Funds and the Development Fees major special revenue fund, and information concerning the progre ss in funding its obligation to pr ovide pension benefits to its employees.
Other Supplementary Information
Combining statements for the other non-major governmental funds, Internal Service Funds, Fiduciary Funds and General, Measure E and Measure G Funds are presented immediately following the Required Supplementary Information as supplementary information.
C. GOVERNMENT-WIDE FINANCIAL ANALYSIS
The Management Discussion and Analysis (MD&A) includes comparative data for analysis.
Statement of Net Position
Net position is a good indicator of the City’s financial position. Du ring this fiscal year, the net position of the City decreased $4 million (2.9%) over the prior year from $245.7 to $241.7 million.
At June 30, 2024, the largest portion of net position c onsists of the City’s investment in capital assets net of related debt. This component is the tota l amount of funds requi red to acquire those assets less any related outstanding debt used for such acquisition. The City uses these capital assets to provide services to residents. The capital asse ts of the City are not sources of income for repayment of debt as most assets are not reve nue generating and generall y are not liquidated to repay debt. Debt service payments are funded from other resources available to the City.
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
9 A condensed Statement of Net Position shown below totals $241,661,060 as of June 30, 2024.
Percent
2024 2023 2024 2023 2024 2023 of Total
Assets:
Current assets 269,809,855 $ 270,896,188$ 16,750,781$ 13,490,935$ 286,560,636$ 284,387,123$ 41.1 % Other assets 5,818,489 6,683,630 4,502,468 4,732,209 10,320,957 11,415,839 1.5 % Capital assets, net 335,763,944 334,557,660 65,238,853 67,974,348 401,002,797 402,532,008 57.5 % Total assets 611,392,288 612,137,478 86,492,102 86,197,492 697,884,390 698,334,970 100.0 % Deferred outflows of resources
Related to pension and OPEB 69,327,178 81,956,802 2,179,156 2,111,334 71,506,334 84,068,136 99.2 % Loss on refunding of debt 459,631 486,668 85,877 94,464 545,508 581,132 0.8 % Total deferred outflow s of resources 69,786,809 82,443,470 2,265,033 2,205,798 72,051,842 84,649,268 100.0 % Liabilities:
Current liabilities 17,863,112 13,246,052 1,060,528 1,484,650 18,923,640 14,730,702 3.8 % Other liabilities 41,756,548 53,124,477 - - 41,756,548 53,124,477 8.3 % LTD - due in one year 19,145,030 18,315,045 1,729,000 1,796,577 20,874,030 20,111,622 4.2 % Long-term liabilities 394,195,005 391,904,153 26,140,774 26,814,267 420,335,779 418,718,420 83.8 % Total liabilities 472,959,695 476,589,727 28,930,302 30,095,494 501,889,997 506,685,221 100.0 % Deferred inflows of resources
Re
lated to pension, OPEB and leases 21,006,643 24,758,990 5,378,532 5,871,700 26,385,175 30,630,690 100.0 % G ain on refunding of debt - - - - - - - Total deferred inflow s of resources 21,006,643 24,758,990 5,378,532 5,871,700 26,385,175 30,630,690 100.0 % Net Position:
Net investment in capital assets 223,199,988 212,511,725 44,273,730 45,330,812 267,473,718 257,842,537 110.7 % Restricted 89,559,884 84,106,986 - - 89,559,884 84,106,986 37.1 % Unrestricted (deficit) (125,547,113) (103,386,480) 10,174,571 7,105,284 (115,372,542) (96,281,196) (47.7)% Total Net Position 187,212,759$ 193,232,231$ 54,448,301$ 52,436,096$ 241,661,060$ 245,668,327$ 100.0 % G overnmental Activities Business-type Activities Total
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
10 Below is a table of the current and prior fiscal year recap of the changes in net position. The entire Statement of Activities can be reviewed on pages 22-23.
2024 2023 2024 2023 2024 2023
Revenues
Program Revenues:
Charges for S ervices 9,951,057$ 12,222,052$ 14,078,424$ 11,454,936$ 24,029,481$ 23,676,988$ Operating G rants & Contributions 39,160,212 26,805,202 - - 39,160,212 26,805,202 Capital G rants & Contributions 11,642,670 10,065,411 - - 11,642,670 10,065,411 G eneral Revenues:
Taxes 164,923,983 161,520,871 - - 164,923,983 161,520,871 Unrestricted Investment Earnings 11,203,141 6,345,564 925,646 503,455 12,128,787 6,849,019 G ain on Disposal of Assets 5,690 (47,200) (12,058) (2,402,411) (6,368) (2,449,611) Payment from Fiduciary Fund - - 950,640 949,242 950,640 949,242 Miscellaneous 991,325 262,754 2,143,902 866,357 3,135,227 1,129,111 Total Revenues 237,878,078 217,174,654 18,086,554 11,371,579 255,964,632 228,546,233 Ex pe n s e s
G eneral G overnment 51,050,717 26,298,588 3,690,327 3,250,011 54,741,044 29,548,599 Public S afety 124,000,360 101,997,548 - - 124,000,360 101,997,548 Public Works 45,984,671 43,345,510 11,110,167 11,733,626 57,094,838 55,079,136 Recreation 12,661,489 11,112,292 - - 12,661,489 11,112,292 Library 6,781,311 6,177,286 - - 6,781,311 6,177,286 I
nterest 4,063,122 4,371,939 629,735 671,380 4,692,857 5,043,319 Total Expenses 244,541,670 193,303,163 15,430,229 15,655,017 259,971,899 208,958,180 Increase (decrease) in Net Position
before Contributions and
Transfers (6,663,592) 23,871,491 2,656,325 (4,283,438) (4,007,267) 19,588,053 Transfers 644,120 (500,615) (644,120) 500,615 - - 644,120 (500,615) (644,120) 500,615 - - Increase (decrease) in Net Position (6,019,472) 23,370,876 2,012,205 (3,782,823) (4,007,267) 19,588,053 Net Position - Beginning of Year 193,232,231 169,861,355 52,436,096 56,218,919 245,668,327 226,080,274 Net Position - Ending 187,212,759$ 193,232,231$ 54,448,301$ 52,436,096$ 241,661,060$ 245,668,327$ G overnmental Activities Business-type Activities Total
Total revenues increased from the prior year by $27.4 million, or 12% and total expenses increased by $54 million from prior year, or 25.8%. Further an alysis is provided within the governmental and business-type activities sections.
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
11 Governmental Activities
Governmental activities resour ces total $237.9 million. The City ’s governmental activities decreased net position by $9 million. The following charts highlight the sources of revenues and purpose of expenses:
Total expenses for governmental activities, ex cluding transfers and contributions, were $244.5 million including interest on long-term debt of $4.1 million.
Public Works
18%
Public Safety
51%
General
Government
21%
Recreation
5%
Library
3%
Interest
2%
Governmental Activities
Expenses by Function/Program
For the Year Ended June 30, 2024
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
12 The below table represents the total cost of each of the City’s governmental and business-type activities as well as each activity’s net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost shows the financial commitment that was placed on the City’s taxpayers by each of these functions.
Total Cost of
Services Percent
Net Cost of
Services Percentage
General government 51,050,717$ 20.9 % 17,369,526$ 9.5 % Public safety 124,000,360 50.7 % 117,533,527 64.0 % Public works 45,984,671 18.8 % 26,409,016 14.4 % Recreation 12,661,489 5.2 % 11,985,675 6.5 % Library 6,781,311 2.8 % 6,426,865 3.5 % Interest 4,063,122 1.7 % 4,063,122 2.2 % Total 244,541,670$ 100 % 183,787,731$ 100 %
Public safety continues to be the single highest expense for the City followed by public works. Net cost of services, after subtracting fees and grant revenues, total $186.7 million.
Business-Type Activities
The City’s business-type activities net position was $54.5 million, an increase of $2.1 million for the fiscal year. Total revenues for business-type activities were $14.1 million. Total expenses for the business-type activities were $14.8 million during FY 2023-24.
Airport Industrial
Waste
Sanitary
Sewer
Downtown
Parking
Permit
Services
Revenue $2.13 $2.08 $3.54 $0.45 $5.88
Expense $2.51 $2.37 $4.20 $2.03 $3.69
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
$5.5
$6.0
$6.5
Business -Type Activities
Revenues, Expenses (in millions)
For the Year Ended June 30, 2024
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
13 D. FUND FINANCIAL STATEMENT ANALYSIS
The City uses fund accounting to ensure and dem onstrate compliance with finance-related legal requirements.
Governmental Funds
The focus of the City’s governmental funds is to provide information on short-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $182.4 million. Of the tota l fund balance, $4.2 million was nonspendable and indicates the resources are nonspendable loans, notes, land and property held for resale and are not anticipated to be liquidated in the near-term. Of the total fund balance, $98.4 million was restricted fund balance, the use of which is constrained by external parties, resource providers, or enabling legislations. Fund balance of $38.2 million was committed by City Council for specific purposes.
The remainder of the restrictions are listed in the Fund Balance footnote.
The General Fund is the chief operating fund of th e City. The General, Measure E and Measure G Funds’ fund balance increased by $9 million in FY 2023-24 to $94.4 million, of which $2.8 million was nonspendable and indi cates the resources are nonspe ndable advances and are not anticipated to be liquidated in the near-term. The $39.9 million committed fund balance is committed for capital projects and is limited to specific purposes as defined in the City Charter or through a formal budgetary action of the City Council occurring through adoption of an ordinance or resolution. Assigned fund balance totaled $31.5 million has been allocated by the City Council for specific capital and operationa l needs while $10.0 million is cat egorized as restricted. The remaining fund balance of $10.2 million is unassigned.
Proprietary Funds
The City’s proprietary funds provide the same type of information found in the government-wide financial statements but in more detail. Factors concerning these funds have been addressed in the discussion of Government-Wide Financial Analysis.
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
14 E. GENERAL FUND BUDGE TARY HIGHLIGHTS
The final amended General, Measure E, and Measure G Fund revenue budget, including transfers in, totaled $176.9 million and the expenditure budget totaled $220.3 million including transfers out. Transfers out are budgeted mo stly for capital projects a nd the funds are already on-hand.
Transfers out to the Capital Projects Fund will occur over multiple years.
Significant Appropriations Increases/Decreases
Appropriations during the year were adjust ed upward by $33.7 million, of which $29.1 million were related to transfers for capital projects and $4.6 million in operational changes. Estimated revenues were increased by $1.2 million.
F. CAPITAL ASSETS AND LONG-TERM OBLIGATIONS
Capital Assets Including Infrastructure
The following is a summary of the City’s capital assets as of June 30, 2024 and 2023:
2024 2023 2024 2023 2024 2023
Land 37,953,126$ 32,983,126$ 3,630,695$ 3,630,695$ 41,583,821$ 36,613,821$ Buildings 134,749,588 135,129,108 25,888,821 25,888,821 160,638,409 161,017,929 Improvements 50,903,966 50,677,352 15,970,700 15,970,700 66,874,666 66,648,052 Equipment 50,518,200 49,191,952 7,871,497 7,796,234 58,389,697 56,988,186 Infrastructure 434,605,116 422,055,987 102,709,198 102,709,198 537,314,314 524,765,185 Rig ht-to-u se assets 960,749 960,749 - - 960,749 960,749 Construction in Progress 25,235,279 28,032,297 2,291,239 1,621,929 27,526,518 29,654,226 734,926,024 719,030,571 158,362,150 157,617,577 893,288,174 876,648,148 Accumulated
Depreciation/Amortizati
on (399,162,080) (384,472,911) (93,123,297) (89,643,229) (492,285,377) (474,116,140) 335,763,944$ 334,557,660$ 65,238,853$ 67,974,348$ 401,002,797$ 402,532,008$ G overnmental Activities Business-type Activities Totals
Capital assets, including infrastructure assets of the City, are those assets which are used in the performance of the City’s functions. At June 30 , 2024, net capital assets of the Governmental Activities totaled $335.8 million and the net capital assets of the Business-type Activities totaled $65.2 million. Finance Department staff maintains and updates the Capital Assets inventory by recording all assets acquired or retired at the e nd of every fiscal year and performs rotating spot inventories each year. The City has elected to report and depreciate all infrastructures.
Further details on the City of Salinas’ capital a ssets can be found in Note 11 to the financial statements.
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
15 Long-Term Obligations
As of June 30, 2024, the City had $441.2 million in long-term debt. 2024 2023 2024 2023 2024 2023
Annual Leave 12,035,252$ 11,945,666$ 552,230$ 517,316$ 12,587,482$ 12,462,982$ Insurance Claims 37,242,708 31,977,619 - - 37,242,708 31,977,619 Lease and subscription liabilities 46,818,865 51,685,223 7,788,000 8,413,000 54,606,865 60,098,223 Loans and Notes - - 518,000 1,015,000 518,000 1,015,000 Revenue Bonds - - 12,745,000 13,310,000 12,745,000 13,310,000 Certificates of
Participation 53,720,000 56,590,000 - - 53,720,000 56,590,000 Assessm ent Di stri ct
Bonds 7,110,000 7,715,000 - - 7,110,000 7,715,000 Unam ortized Bond
Premium 5,679,241 6,373,471 - - 5,679,241 6,373,471 Unam ortized Bond
Discount (304,519) (317,759) - - (304,519) (317,759) Subtotal 162,301,547 165,969,220 21,603,230 23,255,316 183,904,777 189,224,536 Net OPEB Liability 12,171,211 14,555,540 786,950 974,677 12,958,161 15,530,217 Net Pension Liability 238,867,277 229,694,438 5,479,594 4,380,851 244,346,871 234,075,289 Total outstanding debt 413,340,035$ 410,219,198$ 27,869,774$ 28,610,844$ 441,209,809$ 438,830,042$ G overnmental Activities Business-type Activities Totals
Further details on the City of Salinas’ long-term debt can be found in Notes 13, 16, and 18, to the financial statements.
G. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The FY 2024-25 Budget projections were based on economic trends and forecasts specific to the local economy. These estimates, informed by data from the County of Monterey Assessor’s Office and the City’s consultants such as Hinderliter, de Llamas & Asso ciates (HdL) help forecast the most impactful revenue sources, such as sales and property taxes. Expe nditures are carefully reviewed by Finance Department and are incorp orated into the budget with a vacancy savings factor of 5%, reflecting the City’s historical trend of not fully expending predicted salaries and benefit costs.
The City continues to work towards a structurally balanced budget. However, increasing the City’s financial position is significantly influenced by market interest rate fluctuations, liability payments (including pension costs), and operational and capital expenditures. Additionally, accounting standards do not account for future capital cost s beyond depreciation, mean ing deferred capital needs could substantially impact future financia l performance. Controlling the main cost drivers of wages, pension, health insurance, and work ers’ compensation contin ues to be the key to managing future expenditure growth. Rising costs in key City operations and contracted services also pose challenges that could outpace revenue growth.
CITY OF SALINAS
Management’s Discussion and Analysis (Unaudited) (Continued) Fiscal Year Ended June 30, 2024
16 Despite the City balancing its budget in the coming years, maintaining this stability will require fiscal prudence and foresight to address potential future challenges.
Additionally, the position of the nation, state and local econo my, and any recessi onary factors, could influence future budgets. The City continues to work on the Salinas Plan and hopes to achieve savings in those recommendations that have been implemented or are in progress.
The Salinas Plan and Fiscal Sustainability
The Salinas Plan is a Ten-Year Plan designed to provide the City with a path toward maintaining a long-term balanced budget while preserving City services and addressing the affordable housing crisis. The plan provides 32 recommended initiatives. The 32 recommended initiatives are now in various stages of progress and are described in more detail in the Salinas Plan.
Major Projects and Funding
Amid challenges, the City continues deploying funds for various projects City-wide. The City appropriated $51.6 million in Ameri can Rescue Plan Act (ARPA) funds for 19 projects in the following four areas: public facility improvements, public infrastructure, investments in water and sewer, and to address homelessness and housing issues. At June 30, 2024, the City has expended $26.0 million and encumbered $11.3 million of the total appropriation, leaving a balance of $14.3 million.
H. REQUEST FOR INFORMATION
This financial report is designed to provide our residents, taxpayers, customers, and investors and creditors with a general overview of the City ’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, c ontact the City of Salinas Financ e Department, 200 Lincoln Avenue, Salinas, California 93901.
BASIC FINANCIAL STATEMENTS
17 This page intentionally left blank.
18 GOVERNMENT-WIDE FINANCIAL STATEMENTS
19 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 227,738,627 $ 19,581,004$ 247,319,631$ Receivables, net of allowance:
Accounts receivable, net 2,161,026 1,073,685 3,234,711 Taxes receivable 17,893,324 - 17,893,324 Assessments receivable 7,110,000 - 7,110,000 Due from other agencies 7,956,182 - 7,956,182 Leases receivable 539,560 274,125 813,685 Interest receivable 1,981,823 251,280 2,233,103 Internal balances:
Due from (to) other funds 1,644,313 (1,644,313) - Advances to (from) other funds 2,785,000 (2,785,000) - Total current assets 269,809,855 16,750,781 286,560,636 Noncurrent assets:
Receivables, net of allowance:
Loans receivable 59,746 - 59,746 Leases receivable 4,378,743 4,502,468 8,881,211 Land and properties held for resale 1,380,000 - 1,380,000 Capital assets:
Non-depreciable/amortizable 63,188,405 5,921,934 69,110,339 Depreciable/amortizable, net 272,575,539 59,316,919 331,892,458 Total capital assets 335,763,944 65,238,853 401,002,797 Total noncurrent assets 341,582,433 69,741,321 411,323,754 Total assets 611,392,288 86,492,102 697,884,390
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 65,514,703 1,932,653 67,447,356 Related to OPEB 3,812,475 246,503 4,058,978 Loss on refunding of debt 459,631 85,877 545,508 Total deferred outflows of resources 69,786,809 2,265,033 72,051,842
June 30, 2024
Statement of Net Position
City of Salinas
Primary Government
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable 17,266,136 781,339 18,047,475 Interest payable 543,949 230,973 774,922 Deposits payable 53,027 48,216 101,243 Unearned revenue 41,756,548 - 41,756,548 Long-term debt - due within one year 8,024,919 1,729,000 9,753,919 Compensated absences - due within one year 2,407,049 110,445 2,517,494 Insurance claims payable - due within one year 8,748,167 - 8,748,167 Total current liabilities 78,799,795 2,899,973 81,699,768 Noncurrent liabilities:
Long-term debt - due in more than one year 104,998,668 19,322,000 124,320,668 Compensated absences - due in more than one year 9,628,203 441,785 10,069,988 Insurance claims payable - due in more than one year 28,494,541 - 28,494,541 Net pension liability 238,867,277 5,479,594 244,346,871 Net OPEB liability 12,171,211 786,950 12,958,161 Total noncurrent liabilities 394,159,900 26,030,329 420,190,229 Total liabilities 472,959,695 28,930,302 501,889,997
DEFERRED INFLOWS OF RESOURCES
Related to pensions 4,101,558 134,793 4,236,351 Related to OPEB 12,294,807 794,941 13,089,748 Related to leases 4,610,278 4,448,798 9,059,076 Total deferred inflows of resources 21,006,643 5,378,532 26,385,175
NET POSITION
Net investment in capital assets 223,199,988 44,273,730 267,473,718 Restricted for:
Housing 5,981,340 - 5,981,340 Capital projects 10,864,543 -
10,864,543
Public safety 2,797,063 - 2,797,063 Highways and streets 32,091,378 - 32,091,378 Debt service 2,890,088 - 2,890,088 Special programs 34,935,472 - 34,935,472 Total restricted 89,559,884 - 89,559,884 Unrestricted (deficit) (125,547,113) 10,174,571 (115,372,542) 187,212,759$ 54,448,301$ 241,661,060$ Total net position Primary Government
City of Salinas
Statement of Net Position (Continued)
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 21 Operating Capital
Charges for Grants an d Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:
Governmental activities:
General government 48,105,622$ 4,336,632 $ 28,068,617 $ 1,275,942 $ 33,681,191 $ Public safety 126,945,455 1,960,817 4,085,208 420,808 6,466,833 Public works 45,984,671 3,192,447 6,477,368 9,905,840 19,575,655 Recreation 12,661,489 435,453 200,281 40,080 675,814 Library 6,781,311 25,708 328,738 - 354,446 Interest on long-term debt 4,063,122 - - - - Total governmental activities 244,541,670 9,951,057 39,160,212 11,642,670 60,753,939 Business-type activities:
Airport 2,511,276 2,129,000 - - 2,129,000 Industrial Waste 2,371,161 2,077,267 - - 2,077,267 Sanitary Sewer 4,201,439 3,537,796 - - 3,537,796 Downtown Parking District 2,026,291 450,082 - - 450,082 Permit Services 3,690,327 5,884,279 - - 5,884,279 Total business-type activities 14,800,494 14,078,424 - - 14,078,424 Total primary government 259,342,164$ 24,029,481$ 39,160,212$ 11,642,670$ 74,832,363$
City of Salinas
Statement of Activities
For the Year Ended June 30, 2024
Program Revenues
See accompanying Notes to the Basic Financial Statements. 22 Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:
Governmental activities:
General government (14,424,431)$ - $ (14,424,431)$ Public safety (120,478,622) - (120,478,622) Public works (26,409,016) - (26,409,016) Recreation (11,985,675) - (11,985,675) Library (6,426,865) - (6,426,865) Interest on long-term debt (4,063,122) (629,735) (4,692,857) Total governmental activities (183,787,731) (629,735) (184,417,466) Business-type activities:
Airport - (382,276) (382,276) Industrial Waste - (293,894) (293,894) Sanitary Sewer - (663,643) (663,643) Downtown Parking District - (1,576,209) (1,576,209) Permit Services - 2,193,952 2,193,952 Total business-type activities - (722,070) (722,070) Total primary government (183,787,731) (1,351,805) (185,139,536) General Revenues and Transfers:
General revenues:
Taxes:
Sales taxes 91,312,258 - 91,312,258 Property taxes 38,927,142 - 38,927,142 Motor vehicle in lieu 199,582 - 199,582 Utility user tax 14,050,246 - 14,050,246 Franchise tax 10,043,832 - 10,043,832 Business tax 7,481,659 - 7,481,659 Transient occupancy tax 2,906,219 - 2,906,219 Other taxes 3,045 - 3,045 Total taxes 164,923,983 - 164,923,983 Revenue from Fiduciary Funds - 950,640 950,640 Investment earnings 11,203,141 925,646 12,128,787 Gain (loss) on sale of capital assets 5,690 (12,058) (6,368) Miscellaneous revenue 991,325 2,143,902 3,135,227 Transfers 644,120 (644,120) -
Total general revenues and transfers 177,768,259 3,364,010 181,132,269 Change in net position (6,019,472) 2,012,205 (4,007,267) Net Position:
Beginning of year 193,232,231 52,436,096 245,668,327 End of year 187,212,759$ 54,448,301$ 241,661,060$
For the Year Ended June 30, 2024
Statement of Activities (Continued)
City of Salinas
Net (Expense) Revenue
and Changes in Net Position
See accompanying Notes to the Basic Financial Statements. 23 This page intentionally left blank.
24 FUND FINANCIAL STATEMENTS
25 This page intentionally left blank.
26 GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
General Fund - This fund accounts for all financial resources necessary to carry out basic governmental activities of the City that are not accounted for in another fund. This fund supports essential City services such as police and fire protection, street maintenance, libraries, parks, and open space maintenance.
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes. The following funds have been classified as major special revenue funds:
American Rescue Plan Act (ARPA) Special Revenue Fund - On March 11, 2021, President Biden signed the American Rescue Plan Act, which will provide the City with approximately $51 million in relief funds. This fund accounts for the revenues and expenditures of ARPA proceeds.
Housing and Urban Development Grant Special Revenue Fund - This fund accounts for the use of Community Development Block Grant funds received from the federal government. Other revenues in this fund include repayments of commercial and residential loans and rental income from City property. Funds are used for programs or projects that increase affordable housing and benefit people with special needs such as senior and handicapped citizens.
CAPITAL PROJECTS FUNDS
Capital Projects Fund - This fund accounts for all capital project expenditures. Funds are transferred in from various other funds after expenditures are made. This revolving fund was established with $2,000,000 and is used to advance capital project expenditures prior to reimbursement of Federal, State, and other construction grants and bond financing.
DEBT SERVICE FUNDS
2019 Special Tax Bond Monte Bella - This fund is used to accumulate monies for the principal and interest payments for the 2019 Special Tax Bonds to finance the acquisition and/or construction of certain public facilities and improvements within the Community Facilities District No. 2016-1 (Monte Bella) Area No. 1-3. The annual levy of special taxes on that area would be used to pay for principal and interest payments on the bonds. 27 American Housing 2019 Special
Rescue Plan Act and Urban Tax Bond
(ARPA) Development Grant Capital Monte Bella
General Special Revenue Special Revenue Projects Debt Service Fund Fund Fund Fund Fund
ASSETS
Cash and investments 89,532,506$ 27,452,050$ 9,878,634$ 8,490,096$ 936,816$ Receivables, net:
Accounts 1,852,265 - - - - Taxes 17,893,324 - - - - Interest 563,740 - 4,397 - - Due from other agencies 125,638 - 1,927,488 - - Assessments - - - - 7,020,000 Leases 1,365,941 - - - - Due from other funds 10,279,600 - - 4,293,201 - Advances to other funds 2,785,000 - - - - Loans and notes receivable, net of allowance - - 43,175 - - Land and properties held for resale - - - - - Total assets 124,398,014$ 27,452,050$ 11,853,694$ 12,783,297$ 7,956,816$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 9,639,488$ 1,885,238$ 554,423$ 4,293,202$ 3,563$ Due to other funds 19,037,328 - 2,199,922 - - Deposits payable 53,027 - - - - Unearned revenues - 25,566,812 8,223,567 - 7,020,000 Total liabilities 28,729,843 27,452,050 10,977,912 4,293,202 7,023,563
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 932,557 - - Lease-related deferred inflows 1,306,482 - - - - Total deferred inflows of resources 1,306,482 - 932,557 - -
Fund Balances (Deficit):
Nonspendable 2,785,000 - 43,175 - - Restricted 10,000,000 - - - 933,253 Committed 39,909,826 - - 8,490,095 - Assigned 31,490,364 - - - - Unassigned (deficit) 10,176,499 - (99,950) - - Total fund balances (deficit) 94,361,689 - (56,775) 8,490,095 933,253 Total liabilities, deferred inflows of
resources, and fund balances 124,398,014$ 27,452,050$ 11,853,694$ 12,783,297$ 7,956,816$ Major Funds
City of Salinas
Balance Sheet
Governmental Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 28 Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments 81,757,285$ 218,047,387 $
Receivables, net:
Accounts 308,761 2,161,026
Taxes - 17,893,324
Interest 1,386,137 1,954,274
Due from other agencies 5,903,056 7,956,182
Assessments 90,000 7,110,000
Leases 3,552,362 4,918,303
Due from other funds - 14,572,801 Advances to other funds - 2,785,000 Loans and notes receivable, net of allowance 16,571 59,746 Land and properties held for resale 1,380,000 1,380,000 Total assets 94,394,172$ 278,838,043 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 434,846$ 16,810,760 $
Due to other funds 8,522,700 29,759,950
Deposits payable - 53,027
Unearned revenues 946,169 41,756,548
Total liabilities 9,903,715 88,380,285
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 2,463,610 3,396,167
Lease-related deferred inflows 3,303,796 4,610,278 Total deferred inflows of resources 5,767,406 8,006,445
Fund Balances (Deficit):
Nonspendable 1,396,571 4,224,746
Restricted 87,481,987 98,415,240
Committed 141,985 48,541,906
Assigned - 31,490,364
Unassigned (deficit) (10,297,492) (220,943)
Total fund balances (deficit) 78,723,051 182,451,313 Total liabilities, deferred inflows of
resources, and fund balances 94,394,172$ 278,838,043$ City of Salinas
Balance Sheet (Continued)
Governmental Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 29 This page intentionally left blank.
30 Total Fund Balances - Total Governmental Funds 182,451,313$ Capital assets used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.
Non-depreciable/amortizable 63,188,405
Depreciable/amortizable, net 272,575,539
Total capital assets 335,763,944
Deferred inflows resulting from revenues that are not available to pay for current period expenditures are reported as unavailable in the Governmental Funds Balance Sheet. 3,396,167 Long-ter
m liabilities are not due andpayable in the currentperiod and therefore were not reported in the Governmental Funds Balance Sheet.
Compensated absences - due within one year, net of $35,105 reported in the Internal Service Funds (2,371,944) Compensated absences - due in more than one year, net of $140,418 reported in the Internal Service Funds (9,487,785) Insurance claims payable - due in more than one year, net of $35,977,633 reported in the Internal Service Funds (1,265,075) Long-term debt - due within one year (8,024,919)
Long-term debt - due in more than one year (104,998,668) Total long-term liabilities (126,148,391)
Governmental funds report the effects of debt refundings and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities for the following:
Deferred loss on refunding of debt 459,631
Total 459,631
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds. (543,949)
Net pension liability and total OPEB liability used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.
Net pension liability, net of $1,826,395 reported in the Internal Service Funds (237,040,882) Net OPEB liability, net of $266,549 reported in the Internal Service Funds (11,904,662) Total net pension liability and net OPEB liability (248,945,544) Deferre
d outflows of resources related to OPEB andpensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.
Deferred outflows of resources related to pensions, net of $644,169 reported in the Internal Service Funds 64,870,534 Deferred outflows of resources related to OPEB, net of $83,493 reported in the Internal Service Funds 3,728,982 Total deferred outflows of resources 68,599,516
Deferred inflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.
Deferred inflows of resources related to pensions, net of $44,927 reported in the Internal Service Funds (4,056,631) Deferred inflows of resources related to OPEB, net of $269,257 reported in the Internal Service Funds (12,025,550) Total deferred inflows of resources (16,082,181)
Internal service funds are used by management to charge the cost of information technology, vehicle replacement, fleet management and infrastructure to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position. (11,737,747) Net Position of Governmental Activities 187,212,759$
Amounts reported for Governmental Activities in the Statement of Net Position were different because:
City of Salinas
Reconciliation of the Governmental Funds Balance Sheet
To the Government-Wide Statement of Net Position
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 31 American Housing 2019 Special
Rescue Plan Act and Urban Tax Bond
(ARPA) Development Grant Capital Monte Bella
General Special Revenue Special Revenue Projects Debt Service Fund Fund Fund Fund Fund
REVENUES:
Taxes 153,358,523$ -$ -$ -$ -$ Taxes - special assessments - - - - 502,376 Licenses and permits 11,128,716 - - - - Intergovernmental 1,334,064 16,616,053 10,401,835 - - Charges for services 4,907,765 - - - - Investment income (loss) 6,118,498 - 72,109 - 18,972 Rental income 504,533 - - - - Fines and forfeitures 298,460 - - - - Miscellaneous 1,134,412 - 290,938 - - Total revenues 178,784,971 16,616,053 10,764,882 - 521,348
EXPENDITURES:
Current:
General government 25,194,416 5,045,610 8,980,249 2,977,863 21,375 Public safety 89,058,716 178,712 23,038 68,796 - Public works 14,580,082 2,924,499 81,713 6,759,161 - Recreation 8,025,592 172,359 50,000 1,001,042 - Library 5,347,594 - - 619 - Capital outlay 761,438
8,294,873 1,005,291 21,309,732 - Debt service:
Principal 1,078,740 - - 771,116 155,000 Interest and fiscal charges 197,764 - - 44,085 307,569 Total expenditures 144,244,342 16,616,053 10,140,291 32,932,414 483,944
REVENUES OVER (UNDER) EXPENDITURES 34,540,629 - 624,591 (32,932,414) 37,404 OTHER FINANCING SOURCES (USES):
Transfers in 2,835,335 - - 30,422,509 - Transfers out (28,373,037) - (1,076,979) - - Total other financing sources (uses) (25,537,702) - (1,076,979) 30,422,509 - NET CHANGE IN FUND BALANCES 9,002,927 - (452,388) (2,509,905) 37,404 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 85,358,762 - 395,613 2,000,000 895,849 Restatement (Note 23) - - - 9,000,000 - Beginning of year, as restated 85,358,762 - 395,613 11,000,000 895,849 End of year 94,361,689$ -$ (56,775)$ 8,490,095$ 933,253$ Major Funds
City of Salinas
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 32 Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:
Taxes 612,629$ 153,971,152$
Taxes - special assessments 276 502,652 Licenses and permits 180,870 11,309,586
Intergovernmental 21,032,063 49,384,015
Charges for services 1,142,612 6,050,377
Investment income (loss) 3,673,777 9,883,356
Rental income 307,497 812,030
Fines and forfeitures 413,135 711,595
Miscellaneous 2,040,293 3,465,643
Total revenues 29,403,152 236,090,406
EXPENDITURES:
Current:
General government 1,021,486 43,240,999
Public safety 3,888,889 93,218,151
Public works 1,614,111 25,959,566
Recreation 1,008,962 10,257,955
Library 307,670 5,655,883
Capital outlay 316,783 31,688,117
Debt service:
Principal 6,336,502 8,341,358
Interest and fiscal charges 4,224,603 4,774,021
Total expenditures 18,719,006 223,136,050
REVENUES OVER (UNDER) EXPENDITURES 10,684,146 12,954,356 OTHER FINANCING SOURCES (USES):
Transfers in 11,954,292 45,212,136
Transfers out (21,478,000) (50,928,016)
Total other financing sources (uses) (9,523,708) (5,715,880)
NET CHANGE IN FUND BALANCES 1,160,438 7,238,476
FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 77,562,613 166,212,837 Restatement (Note 23) - 9,000,000 Beginning of year, as restated 77,562,613 175,212,837 End of year 78,723,051$ 182,451,313$
City of Salinas
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 33 Net Change in Fund Balances - Total Governmental Funds 7,238,476$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position the cost of those assets was allocated over their estimated useful lives as depreciation expenses. This is the amount of capital assets recorded in the current period. 17,511,351 Depreciation and amortization expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position, but they did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the Governmental Funds. (16,310,757) Retirement of capital assets created a loss on the Government-Wide Statement of Activities and Changes in Net Position. 5,690 Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.
Principal payment of long-term debt 8,341,358
Amortization of bond premiu
m 680,990
Amortization of deferred amount on refunding was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. (27,037) Interest expense on long-term debt was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. This amount represented the changes in accrued interest from prior year. 56,946 Compensated absences expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (60,305) Claims payable expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (63,467) Revenues in the Government-Wide Statement of Activities that do not provide current financial resources and are not reported as revenue in the governmental funds. 1,397,162 Certain pension credits reported in the Government-Wide Statement of Activities do not provide current financial resources and therefore, are not reported as expenditures in governmental funds. (16,669,804) Certain OPEB expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds. 636,203 The internal service funds are used by management to charge the costs of fleet maintenance, facilities maintenance, and technology to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. (8,756,278)
Chan
ge in Net Position of Governmental Activities (6,019,472)$ Amounts reported for Governmental Activities in the Statement of Net Position were different because:
City of Salinas
Reconciliation of the Governmental Funds Statement of Revenues, Statement of Activities and Changes in Net Position
For the Year Ended June 30, 2024
Expenditures, and Changes in Fund Balances to the Government-Wide See accompanying Notes to the Basic Financial Statements. 34 PROPRIETARY FUNDS FINANCIAL STATEMENTS
Proprietary Funds are used to account for a government’s business-type activities (activities supported, at least in part, by fees or charges). Proprietary funds are segregated into Enterprise Funds and Internal Service Funds. Enterprise Funds are used to report business-type activities for which a fee is charged to external users for goods or services. Internal Service Funds on the other hand, are used primarily for services provided to internal users.
The City reports the following enterprise funds:
Airport Fund - This fund is used to account for the enterprise operations of the City-owned airport.
Industrial Waste Fund - This fund is used to account for the enterprise operations of the City-operated Industrial Wastewater Treatment Facility.
Sanitary Sewer Fund - This fund is used to account for the maintenance of the City's sanitary sewer collection system, which is funded by user fees and by the Monterey Regional Water Pollution Control Agency sewer user fees.
Downtown Parking District Fund - This fund was established to account for revenues, operating expenses and debt service associated with the City’s parking facilities. The City’s paid parking facilities include the Monterey Street Parking Structure, the Salinas Street Garage and four parking lots.
Permit Services Fund - This fund is used to account for the revenues and expenditures associated with providing permitting services to the community.
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis.
35 Downtown
Industrial Sanitar y Parkin g
Airport Waste Sewer District
ASSETS
Current assets:
Cash and cash equivalents 2,766,867$ 9,288,494$ 757,255$ 552,630$ Receivables, net:
Accounts 289,063 - 619,349 165,273 Accrued interest 201,746 31,408 2,243 - Excess insurance receivable - - - - Leases receivable 274,125 - - - Prepaid bond insurance - - - - Due from other funds - - - - Total current assets 3,531,801 9,319,902 1,378,847 717,903 Noncurrent assets:
Restricted cash and investments - - - - Leases receivable, long term 4,502,468 - - - Capital assets:
Non-depreciable 2,273,017 2,682,882 959,335 6,700 Depreciable, net 12,871,169 12,461,262 27,778,733 6,120,032 Total capital assets 15,144,186 15,144,144 28,738,068 6,126,732 Total noncurrent assets 19,646,654 15,144,144 28,738,068 6,126,732 Total assets 23,178,455 24,464,046 30,116,915 6,844,635
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 276,135 230,040 598,219 - Related to OPEB 31,214 31,579 83,940 2,557 Loss on refunding of debt - - - 85,877 Total deferred outflows of resources 307,349 261,619 682,159 88,434
LIABILITIES
Current liabilities:
Accounts payable 81,204 195,722 128,467 122,857 Interest payable - 6,084 121,948 102,941 Due to other funds - 84,772 45,371 1,512,247 Deposits payable 48,216 - - - Compensated absences - due within one year 11,955 16,916 32,044 2,576 Long-term debt - due within one year - 518,000 565,000 646,000 Total current liabilities 141,375 821,494 892,830 2,386,621 Noncurrent liabilities:
Advances from other funds - - - 2,785,000 Compensated absences - due in more than one year 47,819 67,666 128,176 10,306 Long term debt - due in more than one year - - 12,180,000 7,142,000 Insurance claims payable - due in more than one year - - - - Net pension liability 782,917 652,225 1,696,114 - Net OPEB liability 99,648 100,814 267,975 8,165 Total noncurrent liabilities 930,384 820,705 14,272,265 9,945,471 Total liabilities 1,071,759 1,642,199 15,165,095 12,332,092
DEFERRED INFLOWS OF RESOURCES
Related to pensions 19,259 16,044 41,723 - Related to OPEB 100,660 101,838 270,696 8,248 Related to leases 4,448,798 - - - Total deferred inflows of resources 4,568,717 117,882 312,419 8,248
NET POSITION (DEFICIT)
Net investment in capital assets 15,144,186 14,626,144 15,993,068 (1,575,391) Unrestricted (deficit) 2,701,142 8,339,440 (671,508) (3,831,880) Total net position (deficit) 17,845,328$ 22,965,584 $ 15,321,560 $ (5,407,271)$ Major Enterprise Funds
City of Salinas
Statement of Net Position
Proprietary Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 36 Governmental
Non-Major Activities
Permit Internal
Services Total Service Funds
ASSETS
Current assets:
Cash and cash equivalents 6,215,758$ 19,581,004$ 9,691,240$ Receivables, net:
Accounts - 1,073,685 -
Accrued interest 15,883 251,280 27,549 Excess insurance receivable - - - Leases receivable - 274,125 - Prepaid bond insurance - - - Due from other funds - - 16,831,462 Total current assets 6,231,641 21,180,094 26,550,251 Noncurrent assets:
Restricted cash and investments - - - Leases receivable, long term - 4,502,468 - Capital assets:
Non-depreciable - 5,921,934 - Depreciable, net 85,723 59,316,919 -
Total capital assets 85,723 65,238,853 - Total noncurrent assets 85,723 69,741,321 - Total assets 6,317,364 90,921,415 26,550,251
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 828,259 1,932,653 644,169 Related to OPEB 97,213 246,503 83,493 Loss on refunding of debt - 85,877 - Total deferred outflows of resources 925,472 2,265,033 727,662
LIABILITIES
Current liabilities:
Accounts payable 253,089 781,339 455,376 Interest payable - 230,973 - Due to other funds 1,923 1,644,313 - Deposits payable - 48,216 - Compensated absences - due within one year 46,954 110,445 35,105 Long-term debt - due within one year - 1,729,000 - Total current liabilities 301,966 4,544,286 9,238,648 Noncurrent liabilities:
Advances from other funds - 2,785,000 - Compensated absences - due in more than one year 187,818 441,785 140,418 Long term debt - due in more than one year - 19,322,000 - Insurance claims payable - due in more than one year - - 27,229,466 Net pension liability 2,348,338 5,479,594 1,826,395 Net OPEB liability 310,348 786,950 266,549 Total noncurrent liabilities 2,846,504 28,815,329 29,462,828 Total liabilities 3,148,470 33,359,615 38,701,476
DEFERRED INFLOWS OF RESOURCES
Related to pensions 57,767 134,793 44,927 Related to OPEB 313,499 794,941 269,257 Related to leases - 4,448,798 - Total deferred inflows of resources 371,266 5,378,532 314,184
NET POSITION (DEFICIT)
Net investment in capital assets 85,723 44,273,730 - Unrestricted (deficit) 3,637,377 10,174,571 (11,737,747) Total net position (deficit) 3,723,100$ 54,448,301 $ (11,737,747)$ City of Salinas
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 37 Downtown
Industrial Sanitary Parking
Airport Waste Sewer District
OPERATING REVENUES:
Fees 143,233 $ 2,077,267 $ 3,537,796 $ - $ Licenses and permits - - - 450,082 Rental income 1,985,767 - - - Total operating revenues 2,129,000 2,077,267 3,537,796 450,082 OPERATING EXPENSES:
Personnel services 948,768 997,118 2,040,603 72,830 Administration 50,000 50,000 100,000 100,787 Contractual services 385,076 675,152 377,390 1,234,574 Supplies 138,009 87,453 166,959 7,612 Insurance 21,366 32,389 55,138 11,541 Insurance claims - - - - Depreciation 955,744 493,957 1,439,016 562,622 Other 12,313 35,092 22,333 36,325 Total operating expenses 2,511,276 2,371,161 4,201,439 2,026,291
OPERATING INCOME (382,276) (293,894) (663,643) (1,576,209) NONOPERATING REVENUES (EXPENSES):
Investment income (loss) 378,256 375,000 19,893 - Interest expense - (16,001) (296,355) (317,379) Other nonoperating revenues (expenses) 323,454 508,735 (2,176) 909,209 Total nonoperating revenues (expenses) 701,710 867,734 (278,638) 579,772 INCOME (LOSS) BEFORE TRANSFERS 319,434 573,840 (942,281) (996,437) TRANSFERS:
Transfers in - 1,078,834 - 393,000 Transfers out (120,522) (1,168,573) (501,271) (33,808) Transfers from fiduciary funds - - - 950,640 Total transfers (120,522) (89,739) (501,271) 1,309,832 Changes in net position 198,912 484,101 (1,443,552) 313,395 NET POSITION (DEFICIT):
Beginning of year, as originally reported 17,646,416 22,481,483 16,765,112 (5,720,666) Restatement (Note 23) - - - - Beginning of year, as restated 17,646,416 22,481,483 16,765,112 (5,720,666) End of year 17,845,328$ 22,965,584$ 15,321,560$ (5,407,271)$ Major Funds
City of Salinas
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 38 Governmental
Non-Major Activities
Permit Internal
Services Total Service Funds
OPERATING REVENUES:
Fees 4,246,126$ 10,004,422$ 6,500,476$
Licenses and permits 1,638,153 2,088,235 - Rental income - 1,985,767 - Total operating revenues 5,884,279 14,078,424 6,500,476 OPERATING EXPENSES:
Personnel services 2,734,890 6,794,209 2,668,352 Administration 56,653 357,440 -
Contractual services 725,405 3,397,597 137,217 Supplies 24,020 424,053 894,681
Insurance 114,376 234,810 5,711,253 Insurance claims - - 12,097,093 Depreciation 28,729 3,480,068 -
Other 6,254 112,317 187,807
Total operating expenses 3,690,327 14,800,494 21,696,403
OPERATING INCOME 2,193,952 (722,070) (15,195,927) NONOPERATING REVENUES (EXPENSES):
Investment income (loss) 152,497 925,646 384,820 Interest expense - (629,735) - Other nonoperating revenues (expenses) 404,680 2,143,902 (305,171) Total nonoperating revenues (expenses) 557,177 2,427,755 79,649 INCOME (LOSS) BEFORE TRANSFERS 2,751,129 1,705,685 (15,116,278) TRANSFERS:
Transfers in - 1,471,834 8,610,000 Transfers out (291,780) (2,115,954) (2,250,000) Transfers from fiduciary funds - 950,640 - Total transfers (291,780) 306,520 6,360,000 Changes in net position 2,459,349 2,012,205 (8,756,278) NET POSITION (DEFICIT):
Beginning of year, as originally reported 1,263,751 52,436,096 6,018,531 Restatement (Note 23) - - (9,000,000) Beginning of year, as restated 1,263,751 52,436,096 (2,981,469) End of year 3,723,100$ 54,448,301$ (11,737,747)$ City of Salinas
Statement of Revenues, Expenses, and Changes in Fund Net Position (Continued) Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 39 Downtown
Industrial Sanitary Parking
Airport Waste Sewer District
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users 2,062,501 $ 2,338,383 $ 3,685,566 $ 557,521 $ Payments to suppliers (588,689) (1,326,562) (700,306) (1,418,624) Payments to employees for services (939,752) (769,873) (1,902,661) (74,969) Payments to claimants - - - - Other (12,313) (35,092) (22,333) (36,325) Net cash provided (used) by operating activities 521,747 206,856 1,060,266 (972,397)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Borrowing from other funds - - 11,595 - Repayment to other funds (28,535) (58,622) - (281,370) Other 323,454 508,735 (2,176) 909,209 Transfers from other funds - 1,078,834 - 1,343,640 Transfers to other funds (120,522) (1,168,573) (501,271) (33,808) Net cash provided by (used in) noncapital financing activities 174,397 360,374 (491,852) 1,937,671
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (363,418) (384,626) - - Proceeds from the sale of assets - - - 3,471 Payment on capital debt and loans payable - (497,000) (565,000) (625,000) Interest paid on capital debt and borrowings - (21,721) (297,533) (329,111) Net cash (used in) capital and related financing activities (363,418) (903,347) (862,533) (950,640) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (loss) 210,495 411,612 25,642 - Activity from leases (96,316) - - - Net cash provided by investing activities 114,179 411,612 25,642 - Net change in cash and cash equivalents 446,905 75,495 (268,477) 14,634 CASH AND CASH EQUIVALENTS:
Beginning of year 2,319,962 9,212,999 1,025,732 537,996 End of year 2,766,867$ 9,288,494$ 757,255$ 552,630$
RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO STATEMENT OF NET POSITION:
Cash and cash investments 2,766,867$ 9,288,494$ 757,255$ 552,630$ Total cash and cash equivalents 2,766,867$ 9,288,494$ 757,255$ 552,630$ City of Salinas
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Major Funds
See accompanying Notes to the Basic Financial Statements. 40 Governmental
Non-Major Activities
Permit Internal
Services Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users 5,884,781$ 14,528,752$ 6,500,476$ Payments to suppliers (782,344) (4,816,525) (2,426,901) Payments to employees for services (2,247,975) (5,935,230) (2,318,103) Payments to claimants - - (10,973,058) Other (6,254) (112,317) (187,807) Net cash provided (used) by operating activities 2,848,208 3,664,680 (9,405,393)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Borrowing from other funds - 11,595 - Repayment to other funds (1,377) (369,904) (781,837) Other 404,680 2,143,902 (305,171)
Transfers from other funds - 2,422,474 8,610,000 Transfers to other funds (291,780) (2,115,954) (2,250,000) Net cash provided by (used in) noncapital financing activities 111,523 2,092,113 5,272,992
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets - (748,044) - Proceeds from the sale of assets - 3,471 - Payment on capital debt and loans payable - (1,687,000) - Interest paid on capital debt and borrowings - (648,365) - Net cash (used in) capital and related financing activities - (3,079,938) - CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (loss) 159,525 807,274 422,627 Activity from leases - (96,316) - Net cash provided by investing activities 159,525 710,958 422,627 Net change in cash and cash equivalents 3,119,256 3,387,813 (3,709,774) CASH AND CASH EQUIVALENTS:
Beginning of year 3,096,502 16,193,191 22,401,014 End of year 6,215,758$ 19,581,004 $ 18,691,240 $
RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO STATEMENT OF NET POSITION:
Cash and cash investments 6,215,758 $ 19,581,004 $ 9,691,240 $ Total cash and cash equivalents 6,215,758$ 19,581,004 $ 9,691,240 $ City of Salinas
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 41 Downtown
Industrial Sanitary Parking
Airport Waste Sewer District
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Operating income (382,276) $ (293,894) $ (663,643) $ (1,576,209) $ Adjustments to reconcile operating income to net
cash provided by (used in) operating activities:
Depreciation/amortization 955,744 493,957 1,439,016 562,622 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:
Accounts receivable, net (60,160) 261,116 147,770 107,439 Deferred outflows - related to pensions 21,321 (81,235) 46,347 - Deferred outflows - related to OPEB 10,638 9,753 24,354 1,915 Accounts payable 5,762 (481,568) (819) (64,110) Deposits payable (6,339) - - - Insurance claims payable - - - - Compensated absences (42,057) 29,181 16,087 3,525 Net pension liability 52,901 287,028 114,224 - Net OPEB liability (25,370) (22,651) (55,519) (5,192) Deferred inflows - related to pensions (9,529) 1,643 (20,658) - Deferred inflows - related to OPEB 1,112 3,526 13,107 (2,387) Total adjustments 904,023 500,750 1,723,909 603,812 Net cash provided by (used in) operating activities 521,747$ 206,856$ 1,060,266$ (972,397)$ Major Funds
City of Salinas
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 42 Governmental
Non-Major Activities
Permit Internal
Services Total Service Funds
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Operating income 2,193,952$ (722,070)$ (15,195,927)$ Adjustments to reconcile operating income to net
cash provided by (used in) operating activities:
Depreciation/amortization 28,729 3,480,068 - Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:
Accounts receivable, net 502 456,667 - Deferred outflows - related to pensions (134,040) (147,607) (49,102) Deferred outflows - related to OPEB 33,125 79,785 16,275 Accounts payable 138,110 (402,625) 238,663 Deposits payable - (6,339) - Insurance claims payable - - 5,201,622 Compensated absences 28,178 34,914 29,281 Net pension liability 644,590 1,098,743 365,985 Net OPEB liability (78,995) (187,727) (31,476) Deferred inflows - related to pensions (9,420) (37,964) (12,663) Deferred inflows - related to OPEB 3,477 18,835 31,949 Total adjustments 654,256 4,386,750 5,790,534 Net cash provided by (used in) operating activities 2,848,208$ 3,664,680$ (9,405,393)$ City of Salinas
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 43 This page intentionally left blank.
44 Fiduciary Funds Financial Statements
Fiduciary Funds are used to account for assets held in a trustee or agency capacity for others and therefore cannot be used to support the government’s own programs. The City maintains the following Fiduciary Funds:
PRIVATE PURPOSE TRUST FUNDS
These funds are used to account for any trust arrangement not properly reported in a pension trust fund under which principal and income benefit individuals, private organizations, or other governments. This fund also accounts for the Successor Agency of the former Redevelopment Agency which was dissolved on January 31, 2012 pursuant to state law.
PENSION TRUST FUNDS
These funds are used to account for resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, or other employee benefit plans. The City’s only pension trust fund is the Deferred Compensation Fund; which allows City employees to invest in trust deeds that are managed by the City with the oversight of an investment committee that is made up of representatives from each of the bargaining units.
CUSTODIAL FUNDS
These funds are used to account for assets held in an agent capacity by the City for individuals, private organizations, other governments and/or other funds that are not required to be reported in pension trust funds, investment trust funds, or private-purpose trust funds.
45 This page intentionally left blank.
46 Fiduciary
Private Purpose Pension Trust Custodial Funds
Trust Funds Fund Funds Total
ASSETS
Cash and investments 3,098,793 $ 13,646,453 $ 206,270 $ 16,951,516 $ Restricted cash and investments held by fiscal agent - 523,700 - 523,700 Receivables, net:
Accounts 68,828 - - 68,828 Interest 6,999 13,730 - 20,729 Loans and notes receivable 6,999 - - 6,999 Land and properties held for resale - 1,039,000 - 1,039,000 Total assets 3,181,619 15,222,883 206,270 18,610,772
LIABILITIES
Accounts payable 129,313 - 173,940 303,253 Deposits payable 354,153 - - 354,153 Unearned revenue 812,539 - - 812,539 Long-term debt:
Due in more than one year 157,500 - - 157,500 Total liabilities 1,453,505 - 173,940 1,627,445
NET POSITION
Restricted for:
Pensions - 15,222,883 - 15,222,883 Individuals and organizations 1,885,015 - 32,330 1,917,345 Total net position 1,885,015$ 15,222,883 $ 32,330 $ 17,140,228$ City of Salinas
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 47 Total
Private Purpose Pension Custodial Fiduciary
Trust Funds Trust Fund Funds Funds
ADDITIONS:
Taxes 4,005,146 $ - $ 446,664$ 4,451,810 $ Contributions:
Plan members - - 342,320 342,320 Employer - 1,208,193 - 1,208,193 Private donations 1,798,599 - - 1,798,599 Investment earnings (loss) 118,575 1,642,568 - 1,761,143 Total additions 5,922,320 2,850,761 788,984 9,562,065 DEDUCTIONS:
Expenses 480,896 - 216,131 697,027 Benefit payments - 1,586,100 - 1,586,100 Payments on behalf of trustees 1,810,357 - - 1,810,357 Contributions to other agencies 2,914,434 - - 2,914,434 Payments to City 950,640 - - 950,640 Assessments disbursed to other governments - - 446,664 446,664 Total deductions 6,156,327 1,586,100 662,795 8,405,222 Change in net position (234,007) 1,264,661 126,189 1,156,843 NET POSITION (DEFICIT):
Beginning of year 2,119,022 12,919,222 (93,859) 14,944,385 End of year 1,885,015 $ 14,183,883 $ 32,330 $ 16,101,228$ City of Salinas
Statement of Change in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 48 49
NOTES TO THE BASIC FINANCIAL STATEMENTS
50 This page intentionally left blank.
City of Salinas
Index to the Notes of the Basic Financial Statements
For the Year Ended June 30, 2024
51 Note 1 – Summary of Significant Accounting Policies ............................................................................................. 55
A. Financial Reporting Entity ......................................................................................................................... 55 B. Basis of Presentation, Accounting and Measurement Focus ..................................................................... 56 C. Cash, Cash Equivalents, and Investments .................................................................................................. 60 D. Restricted Cash and Investments ............................................................................................................... 61 E. Fair Value Measurement ............................................................................................................................ 61 F. Interfund Transactions ............................................................................................................................... 61 G. Receivables ................................................................................................................................................ 62 H. Leases ......................................................................................................................................................... 62 I. Subscription-Based Information Technology Arrangements (SBITAs) .................................................... 62 J. Special Assessment Districts ..................................................................................................................... 63 K. Prepaid Bond Insurance, Original Issue Discounts and Premiums, Gain/Loss on Refunding ................... 63 L. Capital Assets ............................................................................................................................................. 64 M. Land and Properties Held for Resale ........................................................................................... .............. 64 N. Restricted Assets ........................................................................................................................................ 64 O. Claims Payable ........................................................................................................................................... 64 P. Compensated Absences .............................................................................................................................. 65 Q. Long-Term Debt and Other Long-Term Obligations ................................................................................. 65 R. Unearned Revenue ..................................................................................................................................... 66 S. Deferred Outflows and Inflows of Resources ............................................................................................ 66 T. Net Position and Fund Balance .................................................................................................................. 66 U. Property Taxes ........................................................................................................................................... 67 V. Pensions ...................................................................................................................... ............................... 68 W. Other Postemployment Benefits (OPEB) .................................................................................................. 68 X. Encumbrances ............................................................................................................................................ 69 Y. Use of Accounting Estimates ..................................................................................................................... 69 Z. Self-Insurance ............................................................................................................................................ 69 AA. Implementation of New GASB Pronouncements For the Year Ended June 30, 2024 ............................. 70 BB. Upcoming GASB Pronouncements ........................................................................................................... 70
Note 2 – Stewardship, Compliance, and Accountability .......................................................................................... 71
A. Budgeting ................................................................................................................................................... 71 B. Deficit Fund Balances and Net Position .................................................................................................... 71 C. Debt Compliance................................................................................................................ ........................ 72
Note 3 – Cash and Investments ................................................................................................. ................................. 73
A. Demand Deposits ....................................................................................................................................... 73 B. Investments ................................................................................................................................................ 74 C. Risk Disclosures ......................................................................................................................................... 75 D. Fair Value Measurement ............................................................................................................................ 76
Note 4 – Restricted Assets ........................................................................................................................................... 78
Note 5 – Taxes Receivable ........................................................................................................................................... 78
Note 6 – Assessments Receivable ................................................................................................................................ 78
Note 7 – Due from Other Agencies ............................................................................................................................. 79 City of Salinas
Index to the Notes of the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
52 Note 8 – Leases Receivable .................................................................................................... ..................................... 79
Note 9 – Loans and Notes Receivable ........................................................................................... ............................. 80
Note 10 – Interfund Receivables, Payables, and Transfers ...................................................................................... 82
A. Due From and To Other Funds .................................................................................................................. 82 B. Long-Term Advances ............................................................................................................ .................... 82 C. Transfers ..................................................................................................................... ............................... 83
Note 11 – Capital Assets .............................................................................................................................................. 84
A. Governmental Activities ............................................................................................................................ 84 B. Business-Type Activities ........................................................................................................................... 85
Note 12 – Land and Properties Held for Resale ........................................................................................................ 85
Note 13 – Long-Term Debt ......................................................................................................................................... 86
A. Governmental Activities ............................................................................................................................ 86 B. Business-Type Activities ........................................................................................................................... 99 C. Conduit Debt ............................................................................................................................................ 101 D. Fiduciary Activities .................................................................................................................................. 102
Note 14 – Compensated Absences ............................................................................................................................ 103
Note 15 – Risk Management ..................................................................................................................................... 103
Note 16 – Unearned Revenue and Deferred Inflows of Resources ........................................................................ 105
Note 17 – Retirement Programs ............................................................................................................................... 105
A. Summary .................................................................................................................................................. 105 B. California Public Employees Retirement System Agent Multiple-Employer Plans ................................ 107 C. California Public Employees Retirement System Cost-Sharing Multiple-Employer Plan ...................... 113 D. New York Life Single Employer Retirement Plan .................................................................................. 117 E. ICMA Retirement Corporation Defined Contribution Plan ..................................................................... 121 F. Deferred Compensation Plans .................................................................................................................. 122
Note 18 – Other Postemployment Benefits .............................................................................................................. 123
A. General Information about the OPEB Plan .............................................................................................. 123 B. Net OPEB Liability,
OPEB Expense, and Deferred Outflows/Inflows
of Resources Related to OPEB ....................................................................................................... 126
Note 19 – Net Position and Fund Balances .............................................................................................................. 128
A. Government-Wide Financial Statements ................................................................................................. 128 B. Fund Financial Statements ....................................................................................................................... 128 C. Encumbrances .......................................................................................................................................... 129
City of Salinas
Index to the Notes of the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
53 Note 20 – Other Required Disclosures ..................................................................................................................... 130
A. Expenditures Exceeding Appropriations .................................................................................................. 130 B. Net Position Deficit and Restrictions ....................................................................................................... 130
Note 21 – Joint Venture – Salinas Valley Solid Waste Authority ................................................................ ......... 130
Note 22 – Commitments and Contingencies ............................................................................................................ 131
Note 23 – Prior Period Adjustments ........................................................................................................................ 131
54 This page intentionally left blank.
City of Salinas
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
55 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Salinas, California (City) have been prepared in conformity with accounting principles generally accepted in the United States of Am erica (GAAP) as applied to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The most significant of the City’s accounting policies are described below:
A. Financial Reporting Entity
The City was incorporated as a chapter City on March 4, 1874. The City operates under a Council Manager form of government and proves the following services as authori zed: Public Safety, Public Works, Recreation Parks, Library and General Government Administrative Services. The City also operates as Airport, a Downtown Parking District, a Sanitary Sewer System, a Water Utility, a Storm Sewer System, and an Industrial Waste Facility.
The basic financial statements of the City, include the financial activities of the City (the primary government) and its component unit. The component unit discussed below is included in the City’s reporting entity because of the significance of their operational or financial relationship with the City. The blended component unit, although a legally separate entity, is, in substance, part of the City’s operations and so data from this unit is combined with data of the primary government. The City has no discrete ly presented component units. The City and its blended component unit have June 30 year ends.
Blended Component Unit
The financial reporting entity consists of the primary government, the City , and its component unit. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government is accountable and their exclusion would cause the reporting en tity’s financial statements to be misleading or incomplete.
Blended component units, although legally separate entities, are, in substance part of the government’s operation and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government.
Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substan tially the same as the City’s and there is a financial benefit or burden relationshi p between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclus ively, benefits the City, even though it does not provide services directly to it.
The Salinas Public Financing Authority (Authority) – The Authority was established October 6, 1992 pursuant to a Joint Exercise of Powers Agreement by and between the City and the City of Salinas Redevelopment Agency, which is now the Salinas Successor Agency to the former Redevelopment Agency. It was established to refund Central City Revitalization Project tax allocation bonds. The Authority’s pur pose is to assist with financing or refinancing of certain public capital facilities within the City.
The Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Authority. The financial activities of the Authority are included in the City’s Debt Service and Enterprise Funds. A financial report is not issued by the Authority.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
56 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation, Accounting and Measurement Focus
The accounts of the City are organized on the basis of f unds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by pr oviding a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions.
The minimum number of funds is maintained in accordance with legal and managerial requirements.
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduc iary activities of the City are not included in these statements.
These financial statements are presented on an “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital asset s, as well as infrastructure assets, and long-term liabilities, are included in the acco mpanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accr ual 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. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expe nses, gains, losses, assets, deferred outflows of resources, liabilities and deferred inflows of resources resulting from non-exchange transactions are recognized in accordance with the requirements of U.S. GAAP.
Program revenues include charges for ser vices, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Program revenues for the City are classified in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated exce pt those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activiti es and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
Due to/from other funds
Advances to/from other funds
Transfers in/out
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
57 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation, Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances. An accompanying schedule is presented to reconcile and explain the differences in Net Position as presented in these statements to the net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expend itures of the current period. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be availa ble to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days for all revenues except grants, which use a six-month availability period.
Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in-lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all c onsidered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected with in the availability period.
Other revenue items are considered to be measurable and available when cash is received by the government.
Revenue recognition is subject to the measurable and av ailable criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place.
Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions have been recognized as revenues when all applicable eligibility requirements have been met.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds:
General Fund is the City’s primary operating fund. It acc ounts for all financial resources of the general government, except those required to be accounted for in any other funds.
American Rescue Plan Act (ARPA)Special Revenue Fund On March 11, 2021, President Biden signed the American Rescue Plan Act, which will provide the City with approximately $51 million in relief funds. This fund accounts for the revenues and expenditures of ARPA proceeds.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
58 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation, Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
Housing and Urban Developmen t Grant Special Revenue Fund accounts for the use of Community Development Block Grant funds received from the fede ral government. Other revenues in this fund include repayments of commercial and residential loans and re ntal income from City prope rty. Funds are used for programs or projects that increase affordable housing and benefit people with special needs such as senior and handicapped citizens.
Capital Projects Fund accounts for all capital project expenditures. Funds are transferred in from various other funds after expenditures are made. This revolving fund was established with $2,000,000 and is used to advance capital project expenditures prior to reimbursement of Fede ral, State, and other cons truction grants and bond financing.
2019 Special Tax Bond Monte Bella Debt Service Fund is used to accumulate m onies for the principal and interest payments for the 2019 Special Tax Bonds to finance the acquisition and/or construction of certain public facilities and improvements within the Commun ity Facilities District No. 2016-1 (Monte Bella) Area No. 1-3. The annual levy of special taxes on that area would be used to pay for principal and interest payments on the bonds.
Proprietary Fund Financial Statements
Proprietary funds are accounted for using the “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrua l basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Proprietary funds distinguish opera ting revenues and expenses from nonopera ting items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
A separate column representing internal service funds is also presented in these statem ents. However, internal service balances and activities have been combined with the governmental activities and business-type activities in the Government-Wide Financial Statements.
The City reports the following major enterprise funds:
Airport Fund is used to account for the enterprise operations of the City-owned airport.
Industrial Waste Fund is used to account for the enterprise operations of the City-operated Industrial Wastewater Treatment Facility.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
59 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation, Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
Sanitary Sewer Fund is used to account for the maintenance of the City's sanitary sewer collection system, which is funded by user fees and by the Monterey Regional Water Pollution Control Agency sewer user fees.
Downtown Parking District Fund is used to account for revenues, operating expenses and debt service associated with the City’s parking facilities. The City’s paid parking facilities include the Monterey Street Parking Structure, the Salinas Street Garage and four parking lots.
The City’s internal service funds include five individual funds which provide services directly to other City funds.
These areas of service include risk management, general in surance, workers’ compensation, general liability, and fleet maintenance. The Internal Service Funds account for financing of goods and services provided by one department to other departments of the City on a cost-reimbursement basis.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent private purpose trust funds, pension trust funds, and custodial funds. These funds are accounted for on the full accrual basis of accounting.
Fiduciary fund types are accounted for according to the nature of the fund.
Private Purpose Trust Funds are a fiduciary fund type u sed to account for resources held and administrated under trust or similar arrangement for the benefits of individua ls, private organizations, or other governments. The City reports the following private purpose trust funds:
Successor Agency Redevelopment Obligation Retirement Fund was created to serve as a custodian for the assets and to wind down the affairs of the RDA on Februa ry 1, 2012, pursuant to Assembly Bill x1 26. Its purpose is to expeditiously wind down the affairs of the dissolved Community Development Commission of the City of Rohnert Park (Commission) subject to the direction of a seven-member Oversight Board. This fund accounts for the receipt of property tax revenues pursuant to the Redevelopment Dissolution Act and the assets transferred from the Commission. The Succes sor Agency’s assets can only be used to pay enforceable obligations in existence at the date of dissolution pursuant to the Recognized Obligation Payment Schedules approved by the California Department of Finance (DOF) under the Redevelopment Dissolution Act.
Successor Agency Administration – This fund accounts for the administrative activities of the Successor Agency to the former Salinas Rede velopment Agency which was dissolved on February 1, 2012 in accordance with AB 1x26 (enacted June 28, 2011).
Other Private Purpose Trust Funds – These funds are used to account for other trust arrangements not properly reported in a pension trust fund under whic h principal and income benefit individuals, private organizations, or other governments. The City acco unts for the following trust funds: Community Center, Monterey Regional Water Pollution Control Agency (MRWPCA) Fees, Sales Tax, Payroll Taxes, Developer Deposits, Evidence Room, Construction Bonds, Mont erey County Tourism Improvement District, Leadership Salinas, and miscellaneous.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
60 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation, Accounting and Measurement Focus (Continued)
Fiduciary Fund Financial Statements (Continued)
Pension Trust Fund is used to account for resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, or other employee benefit plans. The City’s only pension trust fund is the Deferred Compensation Fund; which allows City employees to invest in trust deeds that are managed by the City with the oversight of an investment committee that is made up of representatives from each of the bargaining units.
Custodial Funds are used to account for assets held in an agent capacity by the City for individuals, private organizations, other governments and/or other funds that are not required to be repor ted in pension trust funds, investment trust funds, or private-purpose trust funds.
C. Cash, Cash Equivalents, and Investments
Cash and Cash Equivalents - Cash and cash equivalents are considered to be amounts in demand deposits, and short-term investments with original, maturity of three months or less from the date of acquisition. For purposes of both the balance sheet and statements of cash flows, cash and cash equivalents include not only currency on hand, but deposits in the City’s cash and investment pool . These deposits have the same characteristics for the participating funds as demand deposit accounts, in that the funds may deposit additional cash at any time and also effectively withdraw cash at any time without prior noti ce or penalty. Cash and cash equivalents also include restricted cash and money market funds held by fiscal agents. For purposes of cash flow s, the City considers all liquid market investments with maturities of one year or less at time of purchase to be cash equivalents. All other investments are stated at fair value. Market value is used as fair valu e for those securities for which market quotations are readily available.
The City pools cash resources from all funds in order to facilitate and maximize the management of cash. The balance in the pooled cash account is available to meet cu rrent operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other fixed income investments with varying terms. Interest earned on investments is allocated to all funds based on average cash and investment balances.
Investments are presented at fair value except as noted below. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Money market investments (such as short–term , highly liquid debt instruments including bankers’ acceptances) and securities (notes, bills, and obligations of the U.S. government and its agencies), and participating interest-earning investment contracts (such as negotiabl e certificates of deposit and repurchase agreements) that have a remaining maturity at the time of purchase of one year or less, are reported at amortized cost, which approximates fair value.
For purposes of the statement of cash fl ows, amounts reported as cash and cas h equivalents, include amounts on deposit in the City pool and any short-term, highly liqui d investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
61 Note 1 – Summary of Significant Accounting Policies (Continued)
C. Cash, Cash Equivalents, and Investments (Continued)
Investment held in Local Agency Investment Fund - The City participates in the Local Agency Investment Fund (“LAIF”), an investment pool managed by the State of Califor nia. LAIF has invested portions of the pool funds in structured notes and asset-backed securiti es. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these inv estments. In addition, these structured notes and asset- backed securities are subject to market risk as a result of changes in interest rates.
LAIF determines fair value on its investments portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available.
The City valued its investments in LAIF as of June 30, 2024, by multiplying its account balance with LAIF times a fair value factor determined by LAIF for all LAIF participants by total aggregate amortized cost.
Other Investments - Investments in nonparticipating interest earning contracts (certificate of deposits) are reported at cost, and all other investments are reported at fair va lue. Fair value is defined as the amount the City could reasonably expect to receive for an investment in a current sale between a willing buyer and seller and is generally measured by quoted market prices.
Deferred Compensation - The Deferred Compensation Plan is invested in deeds of trust secured by real or personal property and in real estate holdings. The trust deeds are considered nonparticipating interest earning investments and are reported at fair market value.
D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents or the City for the redemption of bonded debt and for acquisition and construction of certain capital projects.
E. Fair Value Measurement
U.S. GAAP establishes a framework for measuring fair value, and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
F. Interfund Transactions
Interfund transactions are reflected as loans, services pr ovided, reimbursements and/or transfers. Loans and balances related to unsettled service transactions are reported as receivables and payables as appropriate, are subject to elimination upon consolidation of similar fund types, and are referred to as either “due to/from other funds,” i.e., the current portion of interfund loans and unsettled service transactions, or “advances to/from other funds,” i.e., the noncurrent portion of interfund loans. Any residual bala nces outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances.”
Services provided are deemed to be at market or near market rates and are treated as revenues and expenditures/expenses. Reimbursements are defined as wh en one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
62 Note 1 – Summary of Significant Accounting Policies (Continued)
G. Receivables
All receivables are reported at their gross value and, wh ere appropriate, are reduced by the estimated portion that is expected to be uncollectible. Invoices that remain unpaid after 90 days may be referred to collections. An invoice sent to collection is written off.
H. Leases
The City is a lessor for leases of land and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.
At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. Subsequently, the lease rece ivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses the average of the LAIF rate and the incremental borrowing rate (IBR) provided by the City’s financial institution at the current rate at the time a new lease is executed.
The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
I. Subscription-Based Information Technology Arrangements (SBITAs)
The City has a policy to recognize a SBITA liability and a right ‐to‐use subscription asset (SBITA asset) in our financial statements with an initial, individual value of $5 ,000 or more with a subscription term greater than one year.
At the commencement of a subscription, when the subscription asset is placed into service, the SBITA liability is measured at the present value of payments expected to be made during the subscription term. Future subscription payments are discounted using the City 's incremental borrowing rate and the City recognizes amortization of the discount on the subscription liability as interest expense in subsequent financial reporting periods.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
63 Note 1 – Summary of Significant Accounting Policies (Continued)
I. Subscription-Based Information Technology Arrangements (SBITAs) (Continued)
SBITA assets are measured as the sum of the initial subscription liability, payments made to the SBITA vendor before the commencement of the lease term, and capita lizable implementation costs less any incentives received from the SBITA vendor at or before the commencement of the subscription term. Subscription assets are amortized using the straight-line method over the subscription term.
Key estimates and judgments re lated to SBITAs include how the City de termines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
The City uses the interest rate charged by the SBIT A vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.
The subscription term includes the period during whic h the City has a noncancelable right to use the underlying IT asset. The subscription term also includes periods covered by an option to extend if it is reasonably certain to be exercised.
Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option years th at the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a reme asurement of a subscription and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Right-to-use subscription assets are reported along with other capital assets and subscription liabilities are reported as long-term debt on the statement of net position.
J. Special Assessment Districts
Special assessments are recorded as receivables when they become a lie n on property. Special assessments not considered available are recorded as receivables and offset by unearned reve nues. In general, special assessments and special tax bonds are fully secured by liens against the privately owned properties benefited by the improvement for which the bonds were issued. There is no reserve for delinquent receivables since priority liens exist against the related properties and hence the City’s management believes value will ultimately be received by the City.
K. Prepaid Bond Insurance, Original Issue Discounts and Premiums, Gain/Loss on Refunding
Prepaid bond insurance costs are amortized using the straight-line method over the life of the bonds. Amortization of these balances are recorded as a component of operating expenses.
In the government-wide, proprietary fund and fiduciary fund financial statements, long-term debt and other long- term obligations are reported as liabilities in the app licable governmental activities, business-type activities, proprietary fund and fiduciary fund financial statements. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Original issue premiums are amortized using the straight-line method over the life of the bonds. Gains or losses from refunding of debt are reported as deferred inflows or out flows of resources and amortized over the shorter of the life of the refunded debt or new refunding debt. Amortiza tion of these balances are recorded as a component of interest expense.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
64 Note 1 – Summary of Significant Accounting Policies (Continued)
K. Prepaid Bond Insurance, Original Issue Discounts and Premiums, Gain/Loss on Refunding (Continued)
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. Issuance costs, whether or not w ithheld from the actual debt proceeds received, are reported as debt service expenditures.
L. Capital Assets
Capital assets include land, buildings, improvements, vehicles and equipment, infrastructure, and all other tangible and intangible assets that are used in operations and that have initial useful lives in excess of one year. Capital assets are reported in the applicable governmental or business-type activity columns in the government-wide financial statements, the proprietary funds' statement of net position, and the private-purpose trust fund. Capital assets are defined as assets with an initial individual cost of more than $10,000 for general capital assets and $100,000 for major infrastructure assets, and an estimated useful life in excess of one year.
Such assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value, market based entry price at the time of contribution. Capital outlay is recorded as expenditures of the governmental funds and as assets in the government- wide financial statements to the extent the City's capitalization threshold is met. Amortization of assets ac quired under capital leases is based on the shorter of the lease term or the estimated useful life of the asset and is included in depreciation and amortization.
Buildings, improvements, infrastructure, vehicles and equi pment, and furniture and fixtures are depreciated using the straight-line method (depreciation is calculated starting with the month following the date the asset was placed in service) over the following estimated useful lives:
Asset Type Years
Buildings and improvements 20-50
Other improvements 15-45
Infrastructure 10-50
M achinery and equipment 5-20
M. Land and Properties Held for Resale
Land and properties held for resale is being carried at cost, but no greater than the net realizable value. In the fund financial statements, this amount is recorded as a restricted portion of f und balance due to externally imposed grantor restrictions.
N. Restricted Assets
Assets that are restricted for specific uses by bonded debt requirements, grant provisions or other requirements are classified as restricted because their use is limited by applicable bond covenants or agreements.
O. Claims Payable
Claims and judgments are recognized as expenditures when it is probable that the liability has been incurred and the amount of the loss can be reasonably estimated. This liability is recorded in the internal service fund that accounts for the City’s self-insurance activities.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
65 Note 1 – Summary of Significant Accounting Policies (Continued)
P. Compensated Absences
Vacation, compensatory time, and related benefits are accr ued as determined by the agreement between the City and the respective employees' collective bargaining group. For governmental funds, compensated absence obligations are recorded in the appropriate governmental funds when due. The portion not currently due is recorded in the government-wide financial statements. For propr ietary funds, compensated ab sences are expensed when earned by employees. At year-end, the accrued but unpaid compensated absence obligations are recorded as current and non-current liabilities in the appropriate proprietary funds.
Eligible employees may accrue a maximum of 600 annual leave hours (75 days). Any hours accumulated in excess of 600 hours are paid at the employee’s adjusted hourly rate of pay. For the Firefighter group the maximum is 840 hours for 56 hour shift employees and 600 for 40 hour shif t employees. Employees with fewer than 20 years of service may request pay in lieu of annual leave up to a maximum of 10 days. Employees with more than 20 years of service may request a maximum of 15 days’ pay in lieu of annual leave.
Government-Wide Financial Statements
For governmental and business-type activities, compensated absences are recorded as expenses when earned.
Governmental Fund Financial Statements
For governmental funds, compensated absences are recorded as expenditures in the year paid. The General Fund is typically used to liquidate compensated absences. In proprietary funds, comp ensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund.
Q. Long-Term Debt and Other Long-Term Obligations
Government-Wide Financial Statements and Proprietary Fund Financial Statements
In the Government-Wide Financial Statements and the propr ietary fund types in the Fund Financial Statements, long-term debt and other obligations are reported as liabilities in the applicab le governmental activities, business- type activities, or proprietary fund statement of net positions. Bond premiums and discounts are deferred and amortized over the life of the bonds using effective interest methods. Bonds payable are reported net of the applicable bond premium or discount. In the governmental funds statement of revenue, expenditures and changes in fund balance, issuance of debt is recorded as another financing source (use) in the respective fund. Issuance costs and payment of principal are reported as debt service expenditures.
Governmental Fund Financial Statements
The governmental fund financial statements do not present long-term debt but are show n in the Reconciliation of the Governmental Funds Balance Sheet to the Governme nt-Wide Statement of Net Position. Governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Debt issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
66 Note 1 – Summary of Significant Accounting Policies (Continued)
R. Unearned Revenue
Unearned revenues arise when the City receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures or when monies are received before the related services are performed. In subsequent periods, when both revenue recognition criteria are met or when the City has a legal claim to the resources, the liability for unearned revenue is removed from the balance sheet and revenue is recognized.
S. Deferred Outflows and Inflows of Resources
The Statement of Net Position and Balance Sheet – Governmental Funds reports separate sections for Deferred Outflows of Resources, and Deferred In flows of Resources, when applicable.
Deferred Outflows of Resources – represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.
Deferred Inflows of Resources – represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
T. Net Position and Fund Balance
Net Position Classifications
In the government-wide financial statements, net position is classified in three categories:
Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and amortization, outstanding balances of debt and any debt- related deferred outflows and inflows of resources that are attributable to the acquisition, construction, or improvement of these assets reduce the balance of this category.
Restricted Net Position – This category consists of restricted asse ts reduced by liabilities and deferred inflows of resources related to those assets. Enabling legislation auth orizes the City to assess, levy, charge, or otherwise mandate payment of resources and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation.
Unrestricted Net Position – This category represents net position of the City that is not restricted for any project or purpose and does not meet the criteria for “net investment in capital assets.”
The City first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available.
Fund Balances Classifications
As prescribed by U.S. GAAP, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the following:
Nonspendable Fund Balance – 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. The “not in spendable form” criterion includes items that are not expected to be converted to cash, fo r example: prepaid items and long-term loans and notes receivable.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
67 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Net Position and Fund Balance (Continued)
Fund Balances Classifications (Continued)
Restricted Fund Balance – includes amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governm ents; or (b) imposed by law through constitutional provisions or enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.
Committed Fund Balance – includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making aut hority. The City Council is the highest level of decision- making authority for the City that can, by adoption of an ordinance, commit fund balances. Commitments may be changed or lifted only by the City Council taking the sam e formal actions that imposed the original constraint occurring no later than the close of the reporting period.
Assigned Fund Balance – includes amounts intended to be used by the City for specific purposes through budgetary actions or delegation of authority by the City Council. Intent is expressed by the City Council or an official to whom the City Council has delegated the authority (generally, the City Manager) to assign amounts to be used for specific purposes. This is also the classification for residual funds in the governmental funds other than General Fund.
Unassigned Fund Balance – includes the residual classification for fund balance, which includes all amounts not reported as nonspendable, restricted, committed, or assigne d. The General Fund may report either a positive or negative unassigned fund balance. Unassigned amounts are av ailable for any purpose. Other governmental funds may report only negative unassigned fund balances if expenditures incurred for specific purposes exceeded amounts restricted, committed or assigned for those purposes. Other governmental funds may not report positive unassigned fund balances.
In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance categories, fund balance is depleted in the order of restricted, committed, assigned, and unassigned.
U. Property Taxes
Property taxes are collected on behalf of and remitted to the City by the County of Monterey (the “County”). The amount of property tax levies is restricted by Article 13 A of the California State Constitution (commonly referred to as Proposition 13). The County assesses property values, le vies, bills, and collects the related property taxes as follows:
Secured Unsecured
Lien Dates January 1 January 1
Levy Dates January 1 January 1
Due Dates 50% on November 1 July 1
50% on February 1
Delinquent after December 10 (for November) August 31
April 10 (for February)
The City does not have the ability to control the levy rate or the amount of property taxes remitted by the County because these are governed by State law.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
68 Note 1 – Summary of Significant Accounting Policies (Continued)
U. Property Taxes (Continued)
The City has not elected to participate in the “Teeter Plan” offered by the County whereby cities receive 100% of secured property and supplemental propert y taxes levied in exchange for foregoing any interest and penalties collected on the related delinquent taxes. The City retain s the right to any interest and penalties collected on the related delinquent taxes. Accordingly, property tax revenues are recognized in the fiscal period for which they are levied and collected, adjusted for any amounts deemed unco llectible and amounts expected to be collected more than 60 days after the fiscal year.
General property taxes are based on either a flat 1% rate applied to the fiscal year 1976 full value of the property or on 1% of the sales price of the property on sales tran sactions and construction that occur after the fiscal year 1976 valuation. Assessed values on properties (exclusive of increases related to sales and construction) can rise at a maximum of 2% per year depending on increases in the consumer price index.
V. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiducia ry net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
CalPERS Pension Plans
Valuation date June 30, 2022
Measurement date June 30, 2023
Measurement period July 1, 2022 to June 30, 2023
NY Life Pension Plan
Valuation date September 1, 2023
Measurement date August 31, 2023
Measurement period September 1, 2022 to August 31, 2023
Gains and losses related to changes in total pension liab ility and fiduciary net position are recognized in pension expense systematically over time. The first amortized am ounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be r ecognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactiv e, and retired) as of the beginning of the measurement period.
W. Other Postemployment Benefits (“OPEB”)
For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, informati on about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investment s are reported at fair value, except for money market investments, which are reported at amortized cost.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
69 Note 1 – Summary of Significant Accounting Policies (Continued)
W. Other Postemployment Benefits (“OPEB”) (Continued)
The following timeframes are reported OPEB reporting:
OPEB
Valuation date June 30, 2023
Measurement date June 30, 2023
Measurement period July 1, 2022 to June 30, 2023
Gains and losses related to changes in total OPEB liab ility and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between project ed and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a st raight-line basis over the av erage expected remaining service lives of all members that are provided with benefits (active, inactive, and retir ed) at the beginning of the measurement period.
X. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General, Spec ial Revenue, and Capital Projects Funds. Encumbrances outstanding at year-end are reported as reservations of fund balance since they do not constitute expenditures or liabilities.
Y. Use of Accounting Estimates
The preparation of the basic financial statements in c onformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of revenues and expenses. Actual results could differ from these estimates and assumptions.
Z. Self-Insurance
The City is self-insured for workers’ compensation, ge neral, automobile, and public liability claims. The City’s estimated liability for claims as of June 30, 2024 is based on the claim manager’s estimate of probable losses plus an amount estimated for incurred but not reported claims. An Internal Service Fund is used to account for the collection of premiums from various City departments related to workers’ compensation claims and general claims liabilities. Premiums are established based on historical cl aims experience. Additionally, the City contracts with third party administrators for claims management.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
70 Note 1 – Summary of Significant Accounting Policies (Continued)
AA. Implementation of New GASB Pronouncements For the Year Ended June 30, 2024
During fiscal year ended June 30, 2024, the City implemented the following new GASB Pronouncements:
GASB Statement No. 100 – In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62 . The primary objective of this Statement is to enhance accounting and financial reporting requir ements for accounting changes and e rror corrections to provide more understandable, reliable, relevant, consistent, and comparable inform ation for making decisions or assessing accountability. Application of this statement did not have a significant effect on the City’s financial reporting for the fiscal year ended June 30, 2024.
BB. Upcoming GASB Pronouncements
In the next two years, the City will implement the following GASB Pronouncements:
GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information n eeds of financial statement users by updating the recognition and measurement guidance for compensat ed absences. That objective is achie ved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.
GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. This Statement requires a government to assess whether a concen tration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vuln erable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.
GASB Statement No. 103 – In December 2023, GASB issued Statement No. Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. Application of this statemen t is effective for the City’s fiscal year ending June 30, 2026.
GASB Statement No. 104 – In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires certain types of capital asset s to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets re cognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscripti on assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements , also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
71 Note 2 – Stewardship, Compliance, and Accountability
A. Budgeting
The Budget is prepared by the City Manager and adopt ed by City Council. Formal budgetary integration was employed as a management control device during the fiscal year for the General Fund, Special Revenue Funds, and Capital Projects Funds. The City Manager may transfer budget appropriations between departments and Department Directors may transfer appropriations between program s and accounts within their individual departments and divisions, but only the Council by resolution may appropriate funds from reserves or fund balances.
Budgets for General, Special Revenue and Capital Projects Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Reserves for future lease commit ments have been established for accounting purposes and the fund balance is reserved for the total lease commitment consistent with budget policies.
Budget policy excludes taxes, interest, and accounts receiva ble assets, which are not currently available resources for budget purposes, and condemnation deposits which are returned upon right of way acquisition.
Expenditures may not legally exceed bu dgeted appropriations at the governme nt level. Budgeted amounts shown are as originally adopted or as amended by the City Council during the year. Additional supplementary appropriations were adopted during the mid-year review.
Appropriations lapse at fiscal year end and then are re-budgeted for the coming year. Project-length financial plans are adopted for all capital projects funds and appropriati ons are carried forward until project completion. Grant funds are carried forward until the grant expires.
Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applic able appropriation, is employed as an extension of formal budgetary integration in the governmental funds. Encumbrances outstanding at year-end are recorded as reservations of fund balance and do not constitute e xpenditures or liabilities becau se the commitments will be honored during the subsequent year.
For additional information on budgetary policy and control see Required Supplementary Information.
B. Deficit Fund Balances and Net Position
At June 30, 2024, the governmental activities had an unrestricted net position deficit of $(125,547,113).
At June 30, 2024, the following funds had a deficit fund balance or deficit net position:
Fund Type Fund Deficit
Governmental Housing and Urban Development Grant (56,775)$ Governmental Emergency Medical Services (145,658)
Governmental Traffic Safety (32,506)
Governmental Grants (14,395)
Governmental Assessment District Debt Service (666,354) Governmental Assessment District Administration (2,178) Enterprise Downtown Parking District Fund (5,407,271)
Internal Service Fund Workers Compensation (8,465,842)
Internal Service Fund General Liability (3,112,425)
Internal Service Fund Fleet Maintenance (547,611)
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
72 Note 2 – Stewardship, Compliance, and Accountability
B. Deficit Fund Balances and Net Position (Continued)
Nonmajor Governmental Funds
The deficit fund balance in the Housing and Urban Developm ent Grant Fund of $56,775 is a result of an increase in Community Development and related Housing reimbursable grants in Emergency Shelter Grants related to COVID-19 mitigation program and relate d expenditures. This deficit will decline as claims are submitted for reimbursement to state and federal agencies and becomes available. The deficit fund balances in the special revenue funds Emergency Medical Services fund of $145,658 is due to increased expenditures in emergency equipment and supplies. The deficit fund balance in the Traffic Safety special revenue fund of $32,506 is a result of increased services in vehicle code violations provided by Monterey County. The deficit fund balance in the Grants special revenue fund of $51,632 is due to temporary cash shortfalls experienced while waiting for grant reimbursement.
These deficits will decline as claims are submitted for reimbursement to state and federal agencies and unavailable funds become available. The deficit fund balance in the Debt Service Funds Assessment District debt service fund of $666,354 is due to amounts owed to the General Fund . The deficit fund balance in the Assessment District Administration debt service fund of $2,178 is due to amounts owed to the General Fund.
Enterprise Funds – Downtown Parking District Fund
The deficit net position in the Downtown Parking District Fund of $5,407,274 is a result of historical operating costs in excess of operating revenue. This deficit will continue to decline over time as revenues outpace expenses.
Internal Service Funds
The deficit net position in the General Liability and Workers Compensation internal service funds of $8,465,842 and $3,112,425, respectively, are the result of insurance costs exceeding charges for services in the funds. The City is reevaluating their internal service fund allocations in order to ensure that charges for services in internal service funds are sufficient to cover the costs of providing se rvices moving forward. The deficit net position in the Fleet Maintenance internal service fund is the result of the City moving $9,000,000 of cash held as a replacement reserve back into the City Capital Projects Fund.
C. Debt Compliance
There are a number of limitations and restrictions contained in the various bond indentures. The City believes it is in compliance with all significant limitations and restrictions.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
73 Note 3 – Cash and Investments
Cash and investments are presented in the accompanying financial statements at June 30, 2024 as follows:
Fiduciary Funds
Governmental Business-T yp e Statement of
Activities Activities Total Net Position Total
Cash and investments 227,738,627$ 19,581,004$ 247,319,631$ 16,951,516$ 264,271,147$ Restricted cash and investments - - - 523,700 523,700 Total cash and inv estments 227,738,627$ 19,581,004$ 247,319,631$ 17,475,216$ 264,794,847$ Government-Wide Statement of Net Position
Cash and investments at June 30, 2024, consisted of the following:
Cash and Cash Equivalents:
Cash on hand 35,000$
Demand accounts at banks 9,670,816
Money market 35,000,509
Deposits held in trust by fiscal agent 6,437,636
Money market held in trust by fiscal agent 385,589
Local Agency Investment Fund 9,775,571
Total cash and cash equiv alents 61,305,121
Investments:
Investments held by fiscal agent 201,927,026
Deferred compensation 1,562,700
Total inv estments 203,489,726
Total cash and inv estments 264,794,847$
A. Demand Deposits
The carrying amounts of the City’s demand deposits we re $9,670,816 at June 30, 2024. Bank balances were $16,019,333 at that date. The total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name is discussed below.
The California Government Code requir es California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as co llateral. This Code states that colla teral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is consider ed to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash de posits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The C ity may waive collateral requirements for cash deposits; however, the City has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. In terest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances.
Interest income from cash and investments with fiscal agents is credited directly to the related fund.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
74 Note 3 – Cash and Investments (Continued)
B. Investments
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code that address interest rate risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provision of the California Government Code or the City’s investment policy:
Ma x i m um Ma x i m um
Ma x i m um Percentage Investment in
Authorized Investment Types Maturity of Portfolio One Issuer* Certificates of deposit 5 years None None
Repurchase agreements 5 years None None
Bankers' acceptances 5 years None None
Guaranteed investment contracts 5 years None None
U.S. Treasury bills and notes 5 years None None
State of California Local Agency Investment Fund N/A None None Government agency securities 5 years None None
Passbook savings accounts 5 years None None
Mutual funds 5 years Non e None
Interest bearing checking accounts N/A None None
Commercial paper 5 years None None
* Based on state law requirements or City investment policy requirements, whichever is more restrictive.
The Deferred Compensation Plan is permitted by City resolu tion to invest in deeds of trust secured by real or personal property.
In accordance with Section 53651 of the California Governme nt Code, the City cannot invest in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages, or in any security that could result in zero interest accrual if held to maturity. The limitation does not apply to investments in shares of beneficial interest issued under the Investment Company Act of 1940 that are authorized investments under Section 53601 of the California Government Code. A five-year maximum matu rity for each investment is allowed unless approved by the City Council.
Investment income from cash and invest ments held by fiscal agents are credit ed directly to the related funds.
California Local Agency Investment Fund (LAIF) – The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2024, the City had $9,775,571 invested in LAIF . LAIF determines fair value on its investment portfolio based on market quotations for those securities where ma rket quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
75 Note 3 – Cash and Investments (Continued)
C. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
As a means of limiting exposure to fair value losses from rising interest rates, the City’s investment policy limits the maturity of investments in accordance with Government Code Sections 53601(a)-(n) and 53636(a)-(m). It is the City’s policy to ladder investments so that there are always investments coming due to meet cash flow requirements.
Because the Local Agency Investment Fund as of June 30, 2024 had an average life of 290 days, it was presented as a cash equivalent with a maturity of 0-12 months. However, LAIF allows the City to make withdrawals of any amount within 24 hours.
At June 30, 2024, the City had the following investment maturities:
Investment Type Total 1 year or fewer 1 to 5 years
Investment agreements - BNY 193,375,813$ 123,722,539$ $69,653,274 New York Life Pension 8,551,213 8,551,213 - Trust deeds - deferred compensation 1,562,700 1,562,700 - Total inv estments 203,489,726$ 133,836,452$ 69,653,274$ Investment Maturities
For deposits, custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. For an i nvestment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer), the City will no t be able to recover the value of its investments or collateral securities that are in the possession of an outside party.
The City’s investment policy limits safekeeping of investments to third-party custody. All of the City’s deposits are either insured by the Federal Depository Insurance Corpor ation (“FDIC”) up to $250,00 0 or collateralized with pledge securities held in the trust department of the financial institution in the City’s name.
Disclosures Relating to Concentration of Credit Risk
The City places no limit on the amount the City may invest in any one issu er. However, the City’s investment policy calls for portfoli o diversification by avoiding over concentrat ion in a specific maturi ty sector or specific investments. The City’s portfolio is detailed below:
Investment TypeV alue S&P Moody's % of Total
Investment agreements:
US Treasuries 126,417,572$ A Aaa 62.12%
FHLB 20,039,428 AA+ Aaa 9.85%
FHLMC 938,780 AA+ Aaa 0.46%
FNMA 3,087,104 AA+ Aaa 1.52%
FFCB 7,503,214 AA+ Aaa 3.69%
Corporate bonds 24,701,234 AA+ to A- Aaa to A1 12.14% Trust deeds - deferred compensation 1,562,700 NR NR 0.77% Money market funds:
Investment agreements 1,011,784 AAAm Aaa-mf 0.50% Wilmington Trust, NA 9,676,697 A- A2 4.76%
New York Life Fixed Dollar Account 8,551,213 NR NR 4.20% Total investments 203,489,726$ 100.00%
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
76 Note 3 – Cash and Investments (Continued)
D. Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuati on inputs used to measure the fair value of the asset.
The hierarchy gives the highest priority to unadjusted quoted prices in active market s for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows:
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the City has the ability to access.
Level 2 – Inputs to the valuation methodology include:
• Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.
The asset’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used, need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable requires judgment by the City’s management. City management consider s observable data to be that market data, which is readily available, regularly distributed or updated, reliable, and verifi able, not proprietary, and pr ovided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observab ility of the inputs to its fair value measurement and does not necessarily correspond to City management’s perceived risk of that investment.
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety ar e categorized based on the lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.
Deposits and withdrawals in governmental investment pool s, such as LAIF, are made on the basis of $1 and not fair value. Accordingly, the City’s measured fair value of its proportionate share in these types of investments is based on uncategorized inputs not defined as a Level 1, Le vel 2, or Level 3 input. N on-negotiable FDIC-insured bank certificates of deposit are priced at par.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
77 Note 3 – Cash and Investments (Continued)
D. Fair Value Measurement (Continued)
The City had the following recurring fair value measurements as of June 30, 2024:
Inve stme nts me asure d by fai r val ue l e ve l : June 30, 2024 L ev el 1 L ev el 2 L ev el 3 Investment agreements:
Municipal bonds -$ -$ -$ -$ US Treasuries 126,417,572 126,417,572 - - FHLB 20,039,428 20,039,428 - - FHLM C 938,780 938,780 - - FNMA 3,087,104 3,087,104 - - FFCB 7,503,214 7,503,214 - - Corporate bonds 24,701,234 24,701,234 - - Trust deeds - deferred compensation 1,562,700 - - 1,562,700 Total inv estments by fair v alue lev el 184,250,032 182,687,332$ -$ 1,562,700$ Inv estments not subject to the fair v alue hierarchy:
Money market funds:
Fidelity Investment MM Gov 1,011,784
Wilmington Trust, NA 9,676,697
New York Life Fixed Dollar Account 8,551,213
Total investments not subject to the fair value hierarchy 19,239,694 Total investments 203,489,726$
The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of its investments:
• Investments classified within Level 1 of the fair va lue hierarchy are valued using quoted prices in active markets when available.
• The City held one type of investment that is me asured using Level 3 inputs, Trust Deeds. The City administers a Trust Deposit Fund that includes a De ferred Compensation Plan funded solely by the voluntary salary reductions. Trust Deed notes secured by pr operty taken back in foreclosure and held for resale, are valued by independent real estate profes sionals (market approach), and trust deed notes are valued at their present value (income approach). The valuations are considered Level 3. The value of properties held for resale are reduced for cost of sales. The notes (loans) are valued based on amounts investors would likely pay for notes with interest rates ranging from 6% to 11% discounted to provide loan to values ranging from 50% to 70% depending on property type and condition, borrowers payment history, and term remaining on note.
There have been no changes in the methods and assumptions used at June 30, 2024. The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.
City management believes its valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
78 Note 4 – Restricted Assets
Certain cash and investments are reported as restricted assets at June 30, 2024 as follows:
Fiduciary Funds:
Pension Trust Fun d 523,700$
Total restricted assets - fiduciary funds 523,700$
Note 5 – Taxes Receivable
Taxes receivable recorded in the General Fund of $17,893,324 represent amounts due for the quarter ended June 30, 2024 for the following taxes:
Sales tax 6,832,694$
Measure E transaction and use tax 3,068,350
Measure G transaction and use tax 6,160,504
Utility users tax 954,440
Transient occupancy tax 696,302
Cannabis tax 181,034
17,893,324$
Note 6 – Assessments Receivable
Debt Service Funds – Assessments receivable recorded in the 2019 Special Tax Bond Monte Bella Debt Service Fund and Assessment District Debt Service Fund in the amounts of $7,020,000 and $90,000, respectively, at June 30, 2024, will be collected from property owners to retire outsta nding bond principal issued for improvements in special assessment districts.
Assessment receivables in the amount of $7,020,000 are not expected to be collected within the subsequent year.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
79 Note 7 – Due From Other Agencies
At June 30, 2024, amounts due from other agencies consisted of the following:
Federal State Other Total
Governmental Activities:
General Fund:
California Office of Emergency Services -$ 45,491$ -$ 45,491$ County of Monterey - - 80,146 80,146 Special Rev enue Funds:
Association of M onterey Bay Area Govts. - - 72,104 72,104 Board of State & Community Corrections - 1,214,943 - 1,214,943 CA Emergency Solutions & Housing - 222,957 - 222,957 CA Highway Users Tax - 456,530 - 456,530 CA Housing & Community Development - 358,608 - 358,608 Cable Franchise - - 32,168 32,168 CDBG Improvement Program $897,906 - - 897,906 Coalition of Homeless Services Providers - - 72,111 72,111 County of Monterey - - 440,590 440,590 Emergency Shelter Grant 143,355 - - 143,355 FEMA - Assistance to Firefighters Grant 21,639 - - 21,639 HOME Investment Program 160,448 - - 160,448 Pedestrian Bike & Safety Program - 107,624 - 107,624 SB1 Road Maintenance & Rehab - 336,340 - 336,340 STEP Grant State of California - 33,248 - 33,248 Transportation Agency for M onterey County - - 1,462,927 1,462,927 U.S. Department of Justice 236,888 - - 236,888 Capital Projects Funds:
CA Dept. of Transportation - 869,994 - 869,994 California State Water Resources Control Board - 347,027 - 347,027 Federal Aviation Administration 52,000 - - 52,000 M onterey County - RSTP - - 291,138 291,138 Primary government total 1,512,236$ 3,992,762$ 2,451,184$ 7,956,182$
Note 8 – Leases Receivable
The City leases land and easements to third parties. Leases receivable consist of agreements with third parties for the “right-to-use” the underlying assets owned by the City. The remaining terms of the agreements range from one to 28 years. The calculated interest rates used match the City’s incremental borrowing rate at July 1, 2021.
For fiscal year ended June 30, 2024, the City recognized $1,162,821 in lease revenue and $363,066 in interest revenue, and the outstanding receivable amount at June 30, 2024 is $9,694,896.
A summary of changes in the leases receivable for the fiscal year ended June 30, 2024 is as follows:
Amounts Amounts
Balance Balance due within due in more
July 1, 2023 Additions Reductions June 30, 2024 one year than one year Governmental activities 5,484,333$ -$ (566,030)$ 4,918,303$ 539,560$ 4,378,743$ Business-type activities 5,154,316 - (377,723) 4,776,593 274,125 4,502,468 Total 10,638,649$ -$ (943,753)$ 9,694,896$ 813,685$ 8,881,211$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
80 Note 8 – Leases Receivable (Continued)
Future lease payments are as follows as of June 30, 2024:
Year Ending Lease
June 30 Receivable Interest Total
2025 813,685$ 334,209$ 1,147,894$ 2026 711,687 307,723 1,019,410 2027 587,282 284,785 872,067 2028 609,890 263,951 873,841 2029 529,203 243,760 772,963 2030-2034 2,861,001 935,911 3,796,912 2035-2039 2,359,313 402,480 2,761,793 2040-2044 791,305 131,442 922,747 2045-2049 411,740 40,020 451,760 2050 19,790 120 19,910 Total 9,694,896$ 2,944,401$ 12,639,297$
As of June 30, 2024, the amounts re ported as deferred inflows of resources will be recognized as lease revenue as follows:
Year Ending
June 30 Total
2025 990,183$
2026 842,795
2027 728,387
2028 699,114
2029 587,216
2030-2034 2,646,530
2035-2039 1,719,456
2040-2044 548,361
2045-2049 284,551
2050 12,483
Total 9,059,076$
Note 9 – Loans and Notes Receivable
At June 30, 2024, loans and notes receivable of the City's major individual funds and nonmajor funds taken in aggregate, including the applicable allowance for uncollectible accounts are as follows:
Housing and
Urban Affordable Total
Development Housing Governmental Fiduciary
Fund Fund Activities Funds
Loans funded by federal grants: 20,797,675$ -$ 20,797,675$ -$ Economic development real estate
developer and other loans - 10,445,107 10,445,107 163,900 Less: allowance for uncollectibles (20,754,500) (10,428,536) (31,183,036) - Total loans, net 43,175$ 16,571$ 59,746$ 163,900$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
81 Note 9 – Loans and Notes Receivable (Continued)
The City uses funds generated from the former Agency Housing Loans as well as other state and federal funding sources to offer financial assistance to qualif ied developers, individuals, and famili es by providing loans at “below market” interest rates.
Typical loans and related terms are summarized as follows:
Loan Type Interest Rates Due
Affordable housing 0 - 4% up to 55 years
Multi-unit rental rehabilitation 3% 5 or more years
First time home buyer 3% 7 to 40 years
Home improvement 3 - 6% 1 to 30 years
Loans are secured by first or second in lien-property deeds of trust except for first time homebuyer loans, which are all secured by second deeds of trust. Interest and principal are typically due in installments, except for first time homebuyer, which do not require payments until their maturity dates.
The City has also invested in multi-family rental housing projects serving low to moderate income individuals through subordinate loans with terms of up to 55 years. Generally, th ese loans are to be repaid th rough fixed payments or net cash flow payments from project operations and the term and potential risk of each loan varies. Because of the net cash flow feature of these subordinate loans, there is greater risk of variability in the timing of payments and, potentially, a lower probability of eventual repayment on these subordinate loans than on other loan types.
Accordingly, for financial statement purposes, the City has established an allowance account for these loans receivable due to the contingent nature of the repayment schedules of these loans.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
82 Note 10 – Interfund Receivables, Payable, and Transfers
A. Due From and To Other Funds
At June 30, 2024, the balances of due from and to other funds were as follows:
Receivable Fund Payable Fund Amount Purpose
General Fund Grants Special Revenue Fund 2,388,135$ Cash overdraft General Fund Housing and Urban Development Special Revenue Fund 1,791,227 Cash overdraft General Fund Downtown Parking District Enterprise Fund 1,512,247 Cash overdraft General Fund Emergency Medical Services Special Revenue Fund 78,480 Cash overdraft General Fund Development Fees Special Revenue Fund 269 Cash overdraft General Fund Lighting, Landscape, and Maintenance Dist Special Revenue Fund 51,188 Cash overdraft General Fund Special Construction Assistance Capital Projects Fund 3,587,464 Cash overdraft General Fund Traffic Safety Special Revenue Fund 64,576 Cash overdraft General Fund Assessment District Debt Service Debt Service Fund 803,836 Cash overdraft General Fund Assessment District Administration Debt Service Fund 2,178 Cash overdraft 10,279,600
Capital Projects Capital Projects Fund General Fund 2,205,866 Capital projects Capital Projects Capital Projects Fund Lighting, Landscape and Maintenance Special Revenue Fund 1,607 Capital projects Capital Projects Capital Projects Fund Special Construction Assistance Capital Projects Fund 1,145,577 Capital projects Capital Projects Capital Projects Fund Special Aviation Capital Projects Fund 22,283 Capital projects Capital Projects Capital Projects Fund Housing and Urban Development Special Revenue Fund 408,695 Capital projects Capital Projects Capital Projects Fund Gas Tax Special Revenue Fund 132,794 Capital projects Capital Projects Capital Projects Fund Development Fees Special Revenue Fund 1,734 Capital projects Capital Projects Capital Projects Fund Measure X Special Revenue Fund 184,917 Capital projects Capital Projects Capital Projects Fund Industrial Waste Enterprise Fund 84,772 Capital projects Capital Projects Capital Projects Fund Permit Services Enterprise Fund 1,923 Capital projects Capital Projects Capital Projects Fund Sanitary Sewer Enterprise Fund 45,371 Capital projects Capital Projects Capital Projects Fund SB1 Road Maintenance & Rehab Special Revenue Fund 57,662 Capital projects 4,293,201
Workers Compensation Internal Service Fund General Fund 16,831,462 Claims Total 31,404,263$
B. Long-Term Advances
At June 30, 2024, the balances of long-term advances were as follows:
Adv ances Due To
Governmental
Activities
General Fund
Adv ances Due From
Business-Type Activities:
Downtown Parking 2,785,000 $
Total business-type activities 2,785,000
Total primary government 2,785,000$
Advances from the General Fund to the Do wntown Parking District Fund total $2,785,000 at June 30, 2024. The advances helped subsidize operations in the Downtown Parking District Fund as program needs, including sources and uses, were established. As the Do wntown Parking District becomes fully self-sufficient, a plan will be established to pay back the advance from the General Fund over time.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
83 Note 10 – Interfund Receivables, Payable, and Transfers (Continued)
C. Transfers
Interfund transfers during the year ended June 30, 2024, consisted of the following:
Transfers In Transfers Out Amount Purpose
General Fund Gas Tax Special Revenue Fund 1,800,000$ Capital projects/debt service General Fund Traffic Safety Special Revenue Fund 200,000 Capital projects/debt service General Fund Special Construction Assistance Capital Projects Fund 85,335 Operating costs General Fund Risk M anagement Internal Service Fund 750,000 Operating costs Subtotal General Fund 2,835,335
Capital Projects Capital Projects Fund General Fund 9,168,877 Capital projects Capital Projects Capital Projects Fund Lighting, Landscape and Maintenance Special Revenue Fund 527,530 Capital projects Capital Projects Capital Projects Fund Development Fees Special Revenue Fund 142,435 Capital projects Capital Projects Capital Projects Fund Gas Tax Special Revenue Fund 1,034,890 Capital projects Capital Projects Capital Projects Fund Measure X Special Revenue Fund 2,701,162 Capital projects Capital Projects Capital Projects Fund SB1 Road Maintenance & Rehab Special Revenue Fund 6,022,143 Capital projects Capital Projects Capital Projects Fund Housing and Urban Development Special Revenue Fund 1,076,979 Capital projects Capital Projects Capital Projects Fund Special Aviation Capital Projects Fund 433,551 Capital projects Capital Projects Capital Projects Fund Special Construction Assistance Capital Projects Fund 7,487,153 Capital projects Capital Projects Capital Projects Fund Airport Enterprise Fund 40,629 Capital projects Capital Projects Capital Projects Fund Industrial Waste Enterprise Fund 1,093,781 Capital projects Capital Projects Capital Projects Fund Sanitary Sewer Enterprise Fund 401,599 Capital projects Capital Projects Capital Projects Fund Permit Services Enterprise Fund 291,780 Capital projects Subtotal Capital Projects Capital Projects Fund 30,422,509 COP 2018B T.R.I.P. Debt Service Fund Measure X Special Revenue Fund 378,767 Debt service 2018 Lease El Gabilan Library Debt Service Fund General Fund 787,459 Debt service 2018 Lease-PS Building Police Debt Service Fund General Fund 4,474,340 Debt service COP 1999 & 2004 Debt Service Fund General Fund 227,099 Debt service 2020A Refunding SVSWA Debt Service Fund General Fund 642,656 Debt service Industrial Waste Enterprise Fund General Fund 413,800 Capital projects/debt service Industrial Waste Enterprise Fund Special Construction Assistance Capital Projects Fund 665,034 Capital projects Downtown Parking District Enterprise Fund General Fund 393,000 Debt service Emergency Medical Services Enterprise Fund General Fund 1,600,000 Operating subsidy Vehicle Abatement Special Revenue Fund General Fund 50,000 Operating subsidy Grants Special Revenue Fund General Fund 93,470 Operating subsidy Rent Stabilization Special Revenue Fund General Fund 143,000 Operating subsidy Local Housing Trust Special Revenue Fund General Fund 2,000,000 Operating subsidy 2020A Refunding Energy Debt Service Fund General Fund 1,269,336 Debt service 2020A Refunding Energy Debt Service Fund Airport Enterprise Fund 79,893 Debt service 2020A Refunding Energy Debt Service Fund Industrial Waste Enterprise Fund 74,792 Debt service 2020A Refunding Energy Debt Service Fund Sanitary Sewer Enterprise Fund 99,672 Debt service 2020A Refunding Energy Debt Service Fund Downtown Parking District Enterprise Fund 33,808 Debt service Subtotal 2020A Refunding Energy Debt Service Fund 1,557,501 General Insurance Internal Service Fund General Fund 1,400,000 Operating subsidy General Liabiilty Internal Service Fund General Fund 3,410,000 Operating subsidy General Liabiilty Internal Service Fund Risk M anagement Internal Service Fund 1,000,000 Operating subsidy General Liabiilty Internal Service Fund General Insurance Internal Service Fund 500,000 Operating subsidy Fleet Maintenance Internal Service Fund General Fund 2,300,000 Operating subsidy Total 55,293,970$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
84 Note 11 – Capital Assets
A. Governmental Activities
The summary of changes in governmental activities capital assets for the year ended June 30, 2024, is as follows:
Balance Adjustments/ Balance
Gove rnme ntal Acti vi ti e s: July 1, 2023 Additions Retirements Transfers June 30, 2024 Non-depreciable/amortizable assets:
Land 32,983,126$ 4,970,000$ -$ -$ 37,953,126$ Construction in progress 28,032,297 9,001,248 - (11,798,266) 25,235,279 Total non-depreciable/amortizable assets 61,015,423 13,971,248 - (11,798,266) 63,188,405 Depreciable/amortizable assets
Buildings and improvements 135,129,108 171,480 (551,000) - 134,749,588 Improvements other than buildings 50,677,352 226,614 - 50,903,966 M achinery and equipment 49,191,952 2,391,146 (1,064,898) - 50,518,200 Infrastructure 422,055,987 750,863 - 11,798,266 434,605,116 Rig ht-to-use assets - leases 550,536 - - - 550,536 Rig ht-to-use assets - subscriptions 410,213 - - - 410,213 Total depreciable/amortizable assets 658,015,148 3,540,103 (1,615,898) 11,798,266 671,737,619 Accumulated depreciation/amortization
Buildings and improvements (26,869,469) (2,701,320) 499,780 - (29,071,009) Improvements other than buildings (24,988,180) (1,659,828) - - (26,648,008) Machinery and equipment (37,719,187) (3,103,707) 1,048,300 - (39,774,594) Infrastructure (294,494,747) (8,584,588) - - (303,079,335) Rig ht-to-use assets - leases (374,120) (124,576) - 73,508 (425,188) Right-to-use assets - subscriptions (27,208) (136,738) - - (163,946) Total accumulated depreciation/amortization (384,472,911) (16,310,757) 1,548,080 73,508 (399,162,080) Total depreciable/amortizable assets, net 273,542,237 (12,770,654) (67,818) 11,871,774 272,575,539 Governmental activities
capital assets, net 334,557,660$ 1,200,594$ (67,818)$ 73,508$ 335,763,944$
Depreciation and amortization expense was charged to the functions/programs of the governmental activities as follows:
Gove rnme ntal Acti vi ti e s:
General government 483,370$
Police 2,355,998
Fire 903,873
Public works, including infrastructure 11,545,304
Recreation and parks 837,430
Library 184,782
Total depreciation/amortization expense - governmental activities 16,310,757$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
85 Note 11 – Capital Assets (Continued)
B. Business-Type Activities
The summary of changes in business-type activities capital assets for the year ended June 30, 2024, is as follows:
Balance Balance
Business-Type Activities: July 1, 2023 Additions Retirements Transfers June 30, 2024 Nondepreciable assets:
Land 3,630,695$ -$ -$ -$ 3,630,695$ Construction in progress 1,621,929 681,368 (12,058) - 2,291,239 Total nondepreciable assets 5,252,624 681,368 (12,058) - 5,921,934 Depreciable assets
Buildings and improvements 25,888,821 - - - 25,888,821 Improvements other than buildings 15,970,700 - - - 15,970,700 Machinery and equipment 7,796,234 75,263 - - 7,871,497 Infrastructure 102,709,198 - - - 102,709,198 Total depreciable assets 152,364,953 75,263 - - 152,440,216 Accumulated depreciation:
Buildings and improvements (16,594,963) (685,775) - - (17,280,738) Improvements other than buildings (6,645,741) (764,994) - - (7,410,735) Machinery and equipment (5,462,163) (324,423) - - (5,786,586) Infrastructure (60,940,362) (1,704,876) - - (62,645,238) Total accumulated depreciation (89,643,229) (3,480,068) - - (93,123,297) Total depreciable assets, net 62,721,724 (3,404,805) - - 59,316,919 Business-type activities
capital assets, net 67,974,348$ (2,723,437)$ (12,058)$ -$ 65,238,853$
Depreciation expense was charged to the functions/programs of the business-type activities as follows:
Business-type Activities:
Airport 955,744$
Industrial Waste 493,957
Sanitary Sewer 1,439,016
Downtown Parking 562,622
Permit Services 28,729
Total depreciation expense - business-type activities 3,480,068$
Note 12 – Land and Properties Held For Resale
Land and properties held for resale at June 30, 2024 consisted of the following:
Special Revenue Fund
137, 145, & 151 Division Street 584,419$
Deferred Compensation-Trust Deed
Magallan, Jose; Monterra Ranch Properties-Lot 155 1,039,000 Affordable Housing Fund - Sunset Avenue Merged Housing
115 Division Street 230,981
123 Division Street 206,265
923 E. Market Street 358,335
795,581
Total land and properties held for resale 2,419,000$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
86 Note 13 – Long-Term Debt
A. Governmental Activities
A summary of changes in long-term debt for governmental activities for the year ended June 30, 2024 is as follows:
Amount due Amount due in
Balance Balance within one more than one
July 1, 2023 Additions Retirements June 30, 2024 year year Governmental Activities
Direct borrowings - leases 51,197,454$ -$ (4,610,633)$ 46,586,821$ 4,547,875$ 42,038,946$ Direct borrowings - minor leases 216,965 - (121,997) 94,968 94,968 - Direct borrowings - subscriptions 270,804 - (133,728) 137,076 137,076 - total direct borrowings 51,685,223 - (4,866,358) 46,818,865 4,779,919 42,038,946 Certificates of Participation:
TRIP 2018B 34,620,000 - (800,000) 33,820,000 850,000 32,970,000 Series 2020A-Twin Creeks 1,610,000 - (380,000) 1,230,000 395,000 835,000 Series 2020B Fairways 3,720,000 - (120,000) 3,600,000 135,000 3,465,000 Series 2020A-Energy (2014) 13,850,000 - (1,005,000) 12,845,000 1,080,000 11,765,000 Series 2020A-SVSWA (2015B) 2,790,000 - (565,000) 2,225,000 585,000 1,640,000 Bond premium/(discount):
TRIP 2018B 2,864,727 - (312,350) 2,552,377 - 2,552,377 TRIP 2018B (317,759) - 13,240 (304,519) - (304,519) Series 2020A-Twin Creeks 181,389 - (45,347) 136,042 - 136,042 Series 2020A-Energy (2014) 2,484,712 - (248,471) 2,236,241 - 2,236,241 Series 2020A-SVSWA (2015B) 350,777 - (70,155) 280,622 - 280,622 Total Certificates of Participation: 62,153,846 - (3,533,083) 58,620,763 3,045,000 55,575,763 Assessment District Bonds:
Assessment District 2017 Act Bonds 540,000 - (450,000) 90,000 45,000 45,000 CFD Monte Bella-2019 #1 2,520,000 - (55,000) 2,465,000 55,000 2,410,000 CFD Monte Bella-2019 #2 2,010,000 - (45,000) 1,965,000 45,000 1,920,000 CFD Monte Bella-2019 #3 2,645,000 - (55,000) 2,590,000 55,000 2,535,000 Bond premium/(discount):
CFD Monte Bella-2019 #1 67,440 - (2,498) 64,942 - 64,942 CFD Monte Bella-2019 #2 189,856 - (7,032) 182,824 - 182,824 CFD Monte Bella-2019 #3 234,570 - (8,377) 226,193 - 226,193 Total Assessment District Bonds 8,206,866 - (622,907) 7,583,959 200,000 7,383,959 Total governmental activities 122,045,935$ -$ (9,022,348)$ 113,023,587$ 8,024,919$ 104,998,668$
Direct Borrowing – Leases
Annual debt service requirements to maturity for the City’s major leases are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 4,547,875$ 1,896,706$ 6,444,581$
2026 4,633,821 1,688,306 6,322,127
2027 4,280,125 1,473,154 5,753,279
2028 4,199,000 1,265,597 5,464,597
2029 4,412,000 1,052,583 5,464,583
2030-2034 14,809,000 2,823,621 17,632,621 2035-2039 2,645,000 1,638,378 4,283,378 2040-2044 3,190,000 1,088,188 4,278,188 2045-2049 3,870,000 393,463 4,263,463 Total 46,586,821$ 13,319,995$ 59,906,816$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
87 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Direct Borrowing – Leases (Continued)
Pierce Pumper & Tiller
On March 6, 2015, the City, using lease purchase financing, purchased a Pierce Pumper and Tiller for a total of $1,628,839. The City will make ten annual payments beginning on March 6, 2016 and ending March 6, 2025 at
2.51% interest. Debt payable of $122,082 is recorded as Governmental Activities at June 30, 2024.
If any event of default occurs, and if the lessee agrees to pay, the lessor may require the lessee to pay all amounts currently due and all remaining rent payments due during th e fiscal year in effect when the default occurs with interest at the highest lawful rate from the date of th e lessor’s demand for such payment. Also included in this scenario are additional out-of-pocket expenses incurred by the lessor including a ttorney fees, repossession, safekeeping, storage, repair, reconditioning, and disposition costs. Alternatively, the lessor can require the lessee to return all equipment for the purpose of lease, sale, or otherwise disposition by the lessor.
Debt service requirements to maturity for the Pierce Pumper & Tiller are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 122,082$ 3,060$ 125,142$
Total 122,082$ 3,060$ 125,142$
2014 Lease/Purchase Agreement
The City of Salinas 2014 Lease/Purchase Agreement was issued by the Sali nas Facilities Financing Authority on January 29, 2014. The financing was issued to refund the Animal Shelter COP Series A-1999 ($2,812,000) and the Monterey Street Parking Structure COP Series A-2004 ($13,253,000). The Animal Shelter portion of the financing was issued for 19 years (ending September 1, 2032), at an average interest rate of 4.02%. Maximum annual debt service is $278,646. Debt payable of $1,310,000 is recorded as Governmental Activities at June 30, 2024.
Upon the occurrence of an event of default, the trustee may pursue any available remedy by law or pursuant to the lease agreement to enforce payment of the outstanding amounts. However, there shall be no right under any circumstance to accelerate the lease payments or otherwi se declare any lease payments not then in default to be immediately due and payable. After the occurrence of an event of default, the City will surrender possession of the property to the financing authority, if requested to do so.
Debt service requirements to maturity for 2014 Lease/Purchase Agreement are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 179,000$ 49,064$ 228,064$
2026 191,000 41,627 232,627
2027 120,000 35,376 155,376
2028 124,000 30,472 154,472
2029 127,000 25,427 152,427
2030-2034 569,000 46,974 615,974 Total 1,310,000$ 228,939$ 1,538,939$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
88 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Direct Borrowing – Leases (Continued)
Public Safety Building 2018A
The City of Salinas 2018A Capital Lease was issued by Salinas Public Facilities, Inc. in the amount of $48,825,000 on June 28, 2018. The purpose of this financing was to ra ise funds for the construction of a new Public Safety Building (Police Department) within City limits. The City started making semi-a nnual payments beginning on December 1, 2018 and ending December 1, 2034 at an aver age interest rate of 3.375%. Maximum annual debt service is $4,799,181. Debt payable of $29,805,000 is recorded as Governmental Activities at June 30, 2024.
In the event of an event of default, the trustee shall be entitled to declar e the principal of all the bonds then outstanding, and the interest accrued thereon, to be due and payable immediately. Upon such declaration, anything in the indenture or in the bonds contained to the contrary notwithstanding, shall also be due and payable immediately, and interest on the bonds shall cease to accrue on the date of such declaration.
Debt service requirements to maturity for Public Safety Building 2018A are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 3,210,000$ 1,258,194$ 4,468,194$
2026 3,370,000 1,093,694 4,463,694
2027 3,540,000 920,944 4,460,944
2028 3,715,000 739,569 4,454,569
2029 3,905,000 549,069 4,454,069
2030-2034 12,065,000 663,034 12,728,034 Total 29,805,000$ 5,224,503$ 35,029,503$
El Gabilan Library 2018B
The City of Salinas 2018B Capital Lease was issued by Salinas Public Facilities, Inc. in the amount of $19,830,000 on June 28, 2018. The purpose of this financing was to raise funds for the construction of a new Public Library (El Gabilan) within City limits. The City started making semi-annual payments beginni ng on December 1, 2018 and ending December 1, 2048 at an average interest rate of 3.900%. Maximum annual debt service is $1,152,781. Debt payable of $13,460,000 is recorded as Governmental Activities at June 30, 2024.
In the event of an event of default, the trustee shall be entitled to declar e the principal of all the bonds then outstanding, and the interest accrued thereon, to be due and payable immediately. Upon such declaration, anything in the indenture or in the bonds contained to the contrary notwithstanding, shall also be due and payable immediately, and interest on the bonds shall cease to accrue on the date of such declaration.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
89 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Direct Borrowing – Leases (Continued)
El Gabilan Library 2018B (Continued)
Debt service requirements to maturity for El Gabilan Library 2018B are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 240,000$ 539,119$ 779,119$
2026 255,000 526,744 781,744
2027 345,000 512,213 857,213
2028 360,000 495,556 855,556
2029 380,000 478,088 858,088
2030-2034 2,175,000 2,113,613 4,288,613 2035-2039 2,645,000 1,638,378 4,283,378 2040-2044 3,190,000 1,088,188 4,278,188 2045-2049 3,870,000 393,463 4,263,463 Total 13,460,000$ 7,785,360$ 21,245,360$
Police/Fire Radios & PW Equipment
The City of Salinas Motorola radios and public works equipment lease was issued by Banc of America Public Capital Corporation in the amount of $3,500,000 on August 17, 2018. This equipment replaces old manufactured models and will make Police, Fire, and Public Work operations more efficien t. The lease consists of 84 payments, beginning on August 17, 2019 and ending on August 17, 2025 at an average interest rate of 3.120%. Debt payable of $1,077,926 is recorded as Governmental Activities at June 30, 2024.
Upon the occurrence of an event of default, legal title and physical position of the equipment shall pass to the Lessor, and the City shall have no further interest therein.
Debt service requirements to maturity for Police/Fire Radios & PW Equipment are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 530,684$ 33,631$ 564,315$
2026 547,242 17,074 564,316
Total 1,077,926$ 50,705$ 1,128,631$
2021 Pierce Enforcer Pumpers
In fiscal year 2022, the City, using lease purchase financing, purchased a Pierce Enforcer Pumper fire engine for a total of $1,330,913. The City w ill make six annual payments of $279, 747, beginning on December 17, 2021 and ending December 17, 2026 at 1.68% interest. Debt payable of $811,813 is recorded as Governmental Activities at June 30, 2024.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
90 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Direct Borrowing – Leases (Continued)
2021 Pierce Enforcer Pumpers (Continued)
If any event of default occurs, and if the lessee agrees to pay, the lessor may require the lessee to pay all amounts currently due and all remaining rent payments due during th e fiscal year in effect when the default occurs with interest at the highest lawful rate from the date of th e lessor’s demand for such payment. Also included in this scenario are additional out-of-pocket expenses incurred by the lessor including a ttorney fees, repossession, safekeeping, storage, repair, reconditioning, and disposition costs. Alternatively, the lessor can require the lessee to return all equipment for the purpose of lease, sale, or otherwise disposition by the lessor.
Debt service requirements to maturity for the 2021 Pierce Enforcer Pumper are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 266,109$ 13,638$ 279,747$
2026 270,579 9,168 279,747
2027 275,125 4,622 279,747
Total 811,813$ 27,428$ 839,241$
Minor Leases
The City has entered into various minor leases for equipmen t such as copiers, etc. that were subject to GASB 87 Leases implementation in fiscal year 2024.
Debt service requirements to maturity for these leases are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 94,968$ 3,190$ 98,158$
Total 94,968$ 3,190$ 98,158$
Certificates of Participation Bonds
Series 2018B – TRIP
On July 18, 2108, the California Statewide Communities Development Authority Transportation Revenue issued City of Salinas Certificates of Participation, Series 2018B totaling $37,500,000 at various interest rates plus premium and discounts. The purpose of this financing was to provide expedited funding for the design, acquisition, and construction of local roadway and street improvement projects within the jurisdiction of the City. Debt payable of $33,820,000 plus premiums and discounts of $2,552,3 77 and ($304,519), respectively, are recorded as Governmental Activities at June 30, 2024.
In the event of an event of default, the trustee shall be entitled to exercise the remedies provided under the agreement to collect the outstanding payments in full, with no grace period permitted.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
91 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Certificates of Participation Bonds (Continued)
Series 2018B – TRIP (Continued)
The annual debt service requirements to maturity for the certificates are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 850,000$ 1,481,575$ 2,331,575$
2026 890,000 1,442,525 2,332,525
2027 925,000 1,406,225 2,331,225
2028 950,000 1,363,975 2,313,975
2029 1,010,000 1,314,975 2,324,975
2030-2034 5,815,000 5,787,350 11,602,350 2035-2039 7,395,000 4,161,750 11,556,750 2040-2044 9,410,000 2,127,650 11,537,650 2045-2049 6,575,000 350,613 6,925,613 Total 33,820,000$ 19,436,638$ 53,256,638$
Certificates of Participation Bonds
Series 2020A Twin Creeks
On March 16, 1999, the Salinas Public Financing Authority issued City of Salinas Certificates of Participation (Certificates) Series A-1999 totaling $14,315,000. A portion of the Certificates was allocated for the construction of an animal shelter, $1,250,338, and the balance of the Certificates, $13,064,662 was allocated for construction of the new Twin Creeks (9-hole) Golf Course. On August 24, 2004, the City entered into a sublease agreement with the Monterey Peninsula Foundation and its related foundation, Future Citizen s Foundation, dba the First Tee of Monterey County providing for the lease of Twin Creeks golf course to Future Citizens Foundation. As a condition of the lease, the City repaid the portion of the 1999 Certificates attributable to the Twin Creeks golf course facility (about 57.5% of the lease payments of $575,000) and refinanced that golf course portion with a new Refunding issue of Certificate of Participation. On September 14, 2005, the Salinas Public Financing Authority issued City of Salinas Refunding Certificates of Participation Series 2005A, in the amount of $8,005,000, to refund the portion of the 1999 Certificates attributed to Twin Creeks. Refunding Certificates Series 2005A we re issued for 24 years at
4.22% and were secured by a lien on Twin Creeks golf course. The net value expense of the funding was $117,298.
The refunding was completed to issue qualified 501 (c) 3 bonds to provide for the operation of Twin Creeks golf course by First Tee of Monterey County. Annual debt ser vice for the 2005A Certificates ($572,308) was paid by the annual lease payments ($575,000) from Future Citizens Foundation and guaranteed by the Monterey Peninsula Foundation. At the request of First Tee of Monterey Count y, on December 6, 2011, the City approved a sublease payment reduction from $575,000 to $125,000 (an annual re duction of $450,000). This request was the result of First Tee’s significant golf course operating losses. With the goal of maintaining a quality of level of service to the thousands of golf youth participants and as the most co st-effective alternative, the City Council approved the General Fund support through fiscal year 2015-16 to offset the reduced amount of the sublease to the First Tee of Monterey County.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
92 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Certificates of Participation Bonds (Continued)
Series 2020A Twin Creeks (Continued)
On September 1, 2015, the City issued Refunding Cer tificates of Participation Series 2015, in the amount of $11,440,000 at a 2.53% interest rate, to refund the outstanding portion of the 2005A Certificates of Participation (Twin Creeks) and the 2005B Certificates of Participation (Capital Improvements). Bond started September 1, 2015 and will end after 12 years on September 1, 2027.
On August 19, 2020, the Salinas Public Financing Authority issued City of Salinas Certif icates of Participation, Series 2020A totaling $2,715,000. The Advance Refunding Certificates were issued to refund the 2015A Twin Creeks Golf Project. Bond started November 1, 2020 and will end after 6 years on November 1, 2026. The advance refunding of the 2015A Twin Creeks Golf Project reduced total debt service payments over the next 6 years by $134,501. This results is an economic gain (difference between the present values of the debt service payments on the old and new debt) of $222,408. Debt payable of $1,2 30,000 is recorded in the governmental activities at June 30, 2024.
In the event of an event of default, the Trustee may and, at the direction of the owners of not less than a majority of the aggregate principal amount of bonds then outstanding, and upon being indemnified to its reasonable satisfaction therefore, shall, upon notice in writing to the City and the Salinas Financing Authority, exercise any of the remedies granted to the Salinas Financing Authority under the lease agreement and, in addition, take whatever action at law or in equity may appear necessary or desirable to enforce its rights as assignee pursuant to the Assignment Agreement or to protect and enforce any of the rights vested in the Trustee or the owners, either at law or in equity bankruptcy or otherwise, whether for specific enforcement of any covenant or agreement or for the enforcement of any other legal or equitable right.
The annual debt service requirements to maturity for the certificates are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 395,000$ 41,300$ 436,300$
2026 410,000 25,200 435,200
2027 425,000 8,500 433,500
Total 1,230,000$ 75,000$ 1,305,000$
Series 2020B Fairways
On August 2008, the City of Salinas was issued Refunding Certificates of Participation Series 2008, in the amount of $4,660,000 at a variable interest rate, to refund the outstanding portion of the 1999 Certificate pertaining to the Fairways Golf Project. Bond started September 1, 2008 and will end after 30 years on September 1, 2038. Following the execution and delivery of the Certificates of Participa tion Series 2008, the 1999 Certificates, attributed to the animal shelter, will remain outstanding.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
93 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Certificates of Participation Bonds (Continued)
Series 2020B Fairways (Continued)
On August 19, 2020, the Salinas Public Financing Authority issued City of Salinas Certif icates of Participation, Series 2020B totaling $4,040,000. The Advance Refunding Ce rtificates were issued to refund the 2008 COP Fairways Golf Project. Bond started November 1, 2020 and will end after 18 years on November 1, 2038. The advance refunding of the 2008 COP Fairways Golf Project reduced total debt service payments over the next 18 years by $1,311,557. This results is an economic loss (difference between th e present values of the debt service payments on the old and new debt) of $222,581. Debt paya ble of $3,600,000 is recorded in the governmental activities at June 30, 2024.
In the event of an event of default, the Trustee may and, at the direction of the owners of not less than a majority of the aggregate principal amount of bonds then outstanding, and upon being indemnified to its reasonable satisfaction therefore, shall, upon notice in writing to the City and the Salinas Financing Authority, exercise any of the remedies granted to the Salinas Financing Authority under the lease agreement and, in addition, take whatever action at law or in equity may appear necessary or desirable to enforce its rights as assignee pursuant to the Assignment Agreement or to protect and enforce any of the rights vested in the Trustee or the owners, either at law or in equity bankruptcy or otherwise, whether for specific enforcement of any covenant or agreement or for the enforcement of any other legal or equitable right.
The annual debt service requirements to maturity for the certificates are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 135,000$ 92,537$ 227,537$
2026 155,000 90,619 245,619
2027 165,000 88,184 253,184
2028 185,000 85,126 270,126
2029 200,000 81,354 281,354
2030-2034 1,205,000 323,484 1,528,484 2035-2039 1,555,000 121,425 1,676,425 Total 3,600,000$ 882,729$ 4,482,729$
Series 2020A Energy (2014)
On November 1, 2014, the City entered into a lease agreement funded through private placement in the amount of $21,908,000. The project will install LED lighting on streetlights and parking lots in addition to building solar PV installations at the Hitchcock Road Animal Shelter, the Industrial Waste Treatment Plant, the Salinas Municipal Airport, the Permit Center, Sherwood Hall, and the Sewer Lift Station site off Work Street. The Debt Service repayment were set to be over a 17-year period at 3.03% interest beginning May 1, 2016 and ending November 1, 2032. Maximum annual debt service was $2,005,124.
On August 19, 2020, the Salinas Public Financing Authority issued City of Salinas Certif icates of Participation, Series 2020A totaling $16,190,000. The Advance Refunding Certificates were issued to refund the 2014 Energy Improvement Lease. Bond started Novemb er 1, 2020 and will end after 12 years on November 1, 2032. The advanced refunding of the 2014 Energy Lease reduced tota l debt service payments over the next 12 years by $1,513,227. This results is an econom ic gain (difference between the presen t values of the debt service payments on the old and new debt) of $1,425,483. Debt payable of $12,845,000 is recorded as Governmental Activities at June 30, 2024.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
94 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Certificates of Participation Bonds (Continued)
Series 2020A Energy (2014) (Continued)
In the event of an event of default, the Trustee may and, at the direction of the owners of not less than a majority of the aggregate principal amount of bonds then outstanding, and upon being indemnified to its reasonable satisfaction therefore, shall, upon notice in writing to the City and the Salinas Financing Authority, exercise any of the remedies granted to the Salinas Financing Authority under the lease agreement and, in addition, take whatever action at law or in equity may appear necessary or desirable to enforce its rights as assignee pursuant to the Assignment Agreement or to protect and enforce any of the rights vested in the Trustee or the owners, either at law or in equity bankruptcy or otherwise, whether for specific enforcement of any covenant or agreement or for the enforcement of any other legal or equitable right.
The annual debt service requirements to maturity for the certificates are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 1,080,000$ 509,250$ 1,589,250$
2026 1,155,000 464,550 1,619,550
2027 1,235,000 416,750 1,651,750
2028 1,320,000 365,650 1,685,650
2029 1,410,000 311,050 1,721,050
2030-2033 6,645,000 595,725 7,240,725 Total 12,845,000$ 2,662,975$ 15,507,975$
Series 2020A SVSWA (2015B)
On October 24, 1997, the Salinas Public Financing Authority issued City of Salinas Certificates of Participation (Certificates) Series A-1997 totaling $11,960,000. The purpo se of this financing was to raise money for capital improvement projects and to refund the Authority’s Variab le Rate Lease Revenue Bonds , which were issued to purchase the 65 W. Alisal Building. The Variable Ra te Lease Revenue Bonds Series A-1997 and Series B-1997 were fully retired on November 20, 1997. The outstanding Certificates were secured by liens on City owned assets that included City Hall; Public Safety Building; Steinbeck Library, and 65 W. Alisal Building.
On September 14, 2005, the Salinas Public Financing Authority issued City of Salinas Refunding Certificates of Participation Series 2005B (1997 Capital Improvement Projects). The Refunding Certificates were issued to refund Series A-1997 Certificates. Series 2005B Refunding Certificat es were issued in the amount of $11,705,000 for 24 years at 4.22%. The Refunding Certificates were secure d by a lien on the Salinas Community Center with an appraised value of $13,415,000. With these refunding, liens were removed from the City’s Public Safety Building, 65 West Alisal Building and Steinbeck Library.
On September 1, 2015, the City issued Refunding Cer tificates of Participation Series 2015, in the amount of $11,440,000 at a 2.53% interest rate, to refund the outstanding portion of the 2005A Certificates of Participation (Twin Creeks) and the 2005B Certificates of Participation (Capital Improvements). Bond started September 1, 2015 and will end after 12 years on September 1, 2027.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
95 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Certificates of Participation Bonds (Continued)
Series 2020A SVSWA (2015B) (Continued)
On August 19, 2020, the Salinas Public Financing Authority issued City of Salinas Certif icates of Participation, Series 2020A totaling $4,440,000. The Advance Refunding Ce rtificates were issued to refund the 2015B Salinas Valley Solid Waste Authority Bonds. Bond started N ovember 1, 2020 and will end after 7 years on November 1, 2027. The advance refunding of the 2015B Salinas Valley Solid Waste Authority advance refunding reduced total debt service payments over the next 7 years by $241,953. This results is an economic gain (difference between the present values of the debt service payments on the old and new debt) of $244,664. Debt payable of $2,225,000 is recorded as Governmental Activities at June 30, 2024.
In the event of an event of default, the Trustee may and, at the direction of the owners of not less than a majority of the aggregate principal amount of bonds then outstanding, and upon being indemnified to its reasonable satisfaction therefore, shall, upon notice in writing to the City and the Salinas Financing Authority, exercise any of the remedies granted to the Salinas Financing Authority under the lease agreement and, in addition, take whatever action at law or in equity may appear necessary or desirable to enforce its rights as assignee pursuant to the Assignment Agreement or to protect and enforce any of the rights vested in the Trustee or the owners, either at law or in equity bankruptcy or otherwise, whether for specific enforcement of any covenant or agreement or for the enforcement of any other legal or equitable right.
The annual debt service requirements to maturity for the certificates are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 585,000$ 77,300$ 662,300$
2026 610,000 53,400 663,400
2027 630,000 28,600 658,600
2028 400,000 8,000 408,000
Total 2,225,000$ 167,300$ 2,392,300$
Assessment District Bonds
At June 30, 2024, outstanding Assessment District Bonds totaled $7,110,000 plus bond premiums of $473,959.
Bonds issued for improvements in special assessment districts are liabilities of the property owners and are secured by liens against the assessed property. In the case of default, the City has the authority to advance bonds payments from the special reserve fund and to foreclosure on delinquent property. The bonds are secured by a pledge of the net revenue of the Assessment District and may not be u sed for any other purpose. The total Assessment District Reserve Fund balance was $1,942,362 at June 30, 2024.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
96 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Assessment District Bonds (Continued)
Assessment District 2017 Act Bonds
On July 28, 2017, the City issued $4,555,000 in bonds to refinance the following special assessment district debt:
1998 AD 98-1 – Bella Vista III Refunding ($2,665,000) 2000 AD 96-2 – Acacia Park Refunding ($340,000)
2002 RADA – Bella Vista Refunding ($1,365,000)
2002 RADB – Bella Vista Refunding ($185,000)
The refunding of the assessment districts debt reduced total debt service payments over 9 years by $937,889. This resulted in an economic gain (difference between the pr esent values of the debt service payments on the old and new debt) of $318,303. Maximum debt service is $882,065, including interest ranging from 2.3% to 2.7% for 9 years. Debt payable of $90,000 is recorded in governmental activities at June 30, 2024.
Upon the occurrence of an event of default, the trustee shall be entitled to exercise the remedies provided under the agreement to compel the City to perfo rm and carry out their duties under the 1913 Act, the 1915 Act, or the 1984 Act and their agreements with the owners provided in the Bond agreement.
Annual debt service requirements to maturity for Assessment District 2017 Act Bonds are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 45,000$ 1,823$ 46,823$
2026 45,000 608 45,608
Total 90,000$ 2,430$ 92,430$
CFD Monte Bella-2019 – Community Facilities District No . 2016-1 (Monte Bella) of the City of Salinas 2019 Special Tax Bonds (Improvement Area No. 1)
On February 21, 2019, the Bond Purchase Agreement was si gned in the amount of $2,675,000 at various interest rates to finance the acquisition and/or construction of certain public facilities and improvements within Community Facilities District (CFD) No. 2016-1 Improvement Area No. 1 of the district. Debt payable net of premiums of $2,529,942 is recorded as Governmental Activities at June 30, 2024.
Upon the occurrence of an event of default, the trust ee may pursue any available remedy by law to enforce the payment of principal, premium and interest on the outstanding bonds.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
97 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Assessment District Bonds (Continued)
CFD Monte Bella-2019 – Community Facilities District No . 2016-1 (Monte Bella) of the City of Salinas 2019 Special Tax Bonds (Improvement Area No. 1) (Continued)
Annual debt service requirements to maturity CFD Monte Bella-2019 #1 bonds are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 55,000$ 102,534$ 157,534$
2026 55,000 100,575 155,575
2027 60,000 97,700 157,700
2028 60,000 94,700 154,700
2029 65,000 91,575 156,575
2030-2034 370,000 411,694 781,694 2035-2039 440,000 340,169 780,169 2040-2044 535,000 240,000 775,000 2045-2049 675,000 100,125 775,125 2050-2054 150,000 3,000 153,000 Total 2,465,000$ 1,582,072$ 4,047,072$
CFD Monte Bella-2019 #2 – Community Facilities District No. 2016-1 (Monte Bella) of the City of Salinas 2019 Special Tax Bonds (Improvement Area No. 2)
On December 1, 2019, the Bond Purchase Agreement was si gned in the amount of $2,090,000 at various interest rates to finance the acquisition and/or construction of certain public facilities and improvements within Community Facilities District (CFD) No. 2016- Improvement Area 2 of the district. Debt payable net of premiums of $2,147,824 is recorded as Governmental Activities at June 30, 2024.
Upon the occurrence of an event of default, the trust ee may pursue any available remedy by law to enforce the payment of principal, premium and interest on the outstanding bonds.
Annual debt service requirements to maturity CFD Monte Bella-2019 #2 bonds are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 45,000$ 84,050$ 129,050$
2026 45,000 82,250 127,250
2027 50,000 80,350 130,350
2028 50,000 78,350 128,350
2029 50,000 76,350 126,350
2030-2034 295,000 348,250 643,250 2035-2039 355,000 288,950 643,950 2040-2044 420,000 217,500 637,500 2045-2049 530,000 100,500 630,500 2050-2054 125,000 3,125 128,125 Total 1,965,000$ 1,359,675$ 3,324,675$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
98 Note 13 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Assessment District Bonds (Continued)
CFD Monte Bella-2019 #3 – Community Facilities District No. 2016-1 (Monte Bella) of the City of Salinas 2019 Special Tax Bonds (Improvement Area No. 3)
On December 20, 2020, the Bond Purchase Agreement was signed in the amount of $2,695,000 at various interest rates to finance the acquisition and/or construction of certain public facilities and improvements within Community Facilities District (CFD) No. 2016- Improvement Area 3 of the District. Debt payable net of premiums of $2,816,193 is recorded as Governmental Activities at June 30, 2024.
Upon the occurrence of an event of default, the trust ee may pursue any available remedy by law to enforce the payment of principal, premium and interest on the outstanding bonds.
Annual debt service requirements to maturity CFD Monte Bella-2019 #3 bonds are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 55,000$ 102,500$ 157,500$
2026 55,000 100,300 155,300
2027 60,000 98,000 158,000
2028 60,000 95,600 155,600
2029 65,000 93,100 158,100
2030-2034 365,000 423,900 788,900 2035-2039 440,000 343,400 783,400 2040-2044 540,000 245,400 785,400 2045-2049 650,000 127,000 777,000 2050-2054 300,000 12,200 312,200 Total 2,590,000$ 1,641,400$ 4,231,400$
Subscription-Based Information Technology Arrangements – SBITAs
The City has contracted for the “rig ht-to-use” certain subscription-based in formation technology software in the governmental activities. The arrangements have interest rates between 2.75% and 3.5%. The value of the right-to- use subscription assets as of the end of the current fiscal year was $246,267. Subscriptions payable outstanding at June 30, 2024 were $137,076.
Annual debt service requirements to maturity on subscription liabilities are as follows:
Fiscal Year Principal Interest Total
2025 137,076$ 3,431$ 140,507$
Total 137,076$ 3,431$ 140,507$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
99 Note 13 – Long-Term Debt (Continued)
B. Business-Type Activities
A summary of changes in long-term debt for business-type activities for the year ended June 30, 2024 is as follows:
Amount due Amount due in
Balance Balance within one more than one
July 1, 2023 Additions Retirements June 30, 2024 year year Business-type Activities
Direct borrowings and placements:
Monterey Parking Garage 2014 lease 8,413,000$ -$ (625,000)$ 7,788,000$ 646,000$ 7,142,000$ HUD Section 108 loan 1,015,000 (497,000) 518,000 518,000 - Total direct borrowings and placements 9,428,000 - (1,122,000) 8,306,000 1,164,000 7,142,000 Revenue Bonds:
Wastewater 2020A 13,310,000 - (565,000) 12,745,000 565,000 12,180,000 Total Revenue Bonds 13,310,000 - (565,000) 12,745,000 565,000 12,180,000 Total business-type activities 22,738,000$ -$ (1,687,000)$ 21,051,000$ 1,729,000$ 19,322,000$
2014 Lease/Purchase Agreement
The 2014 Lease/Purchase Agreement was issued by the Salinas Facilities Financing Authority on January 29, 2014.
The financing was issued to refund the Animal Shelte r COP Series A-1999 ($2,812,000) and the Monterey Street Parking Structure COP Series A-2004 ($13,253,000). The Monterey Street Parking Structure portion of the financing was issued for 20 years (ending September 1, 203 3), at an average interest rate of 4.02%. Maximum annual debt service is $963,518. Debt payable of $7,788,000 is recorded in the Downtown Parking District Enterprise Fund at June 30, 2024 and reported is reported as business-type activities.
Upon the occurrence of an event of default, the trustee may pursue any available remedy by law or pursuant to the lease agreement to enforce payment of the outstanding amounts. However, there shall be no right under any circumstance to accelerate the lease payments or otherwi se declare any lease payments not then in default to be immediately due and payable. After the occurrence of an event of default, the City will surrender possession of the property to the financing authority, if requested to do so.
Debt service requirements to maturity is as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 646,000$ 300,093$ 946,093$
2026 674,000 273,561 947,561
2027 700,000 245,944 945,944
2028 731,000 217,181 948,181
2029 756,000 187,292 943,292
2030-2034 4,281,000 443,788 4,724,788 Total 7,788,000$ 1,667,858$ 9,455,858$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
100
Note 13 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
Direct Placement Debt
HUD Section 108 Loan
On March 28, 2015, the City entered into a contract fo r Loan Guarantee Assistance with the Housing and Urban Development Department (HUD), pursuant to which the City will derive funds fo r the purposes permitted under the agreement, and executed one or more City Notes in the maximum aggregate principal amount of up to $9,390,000. The City executed a note numbered as B-12-MC-06-0005 (Community and Economic Development Fund – Industrial Wastewater Conveyance System Project) in the principal amount of $4,000,000. The City has pledged current and future Community Development Block Grant (CDBG) funds as principal security for the loan.
The loan carries a variable interest rate of 20 points (0.2%) above the applicable LIBOR rate. Debt payable of $518,000 is recorded in the Industrial Waste Enterprise Fund at June 30, 2024 and is reported as business-type activities.
Upon the event of default, the custodian may take any action available by law, subject to the sections of the agreement, to pursue payment of the outstanding amount , including any additional fees, costs, and expenses incurred by the custodian in connection therewith.
Debt service requirements to maturity is as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 518,000$ 7,382$ 525,382$
Total 518,000$ 7,382$ 525,382$
2020A Wastewater Revenue Refunding Bonds – Series 2020A
On February 8, 2012, the City of Salinas issued Sanitary Sewer System Revenue Bonds, Series 2012 in the amount of $17,995,000 to provide funds for the current refunding of the City’s Sanitary Sewer System Revenue Bonds, Series 1998 and to finance capital replacement of existing sewer mains and other sewer related capital replacement.
Maximum annual debt service is $1,022,406, including interest ranging from 1.0% to 4.4% for 30 years. The City is authorized under Chapter 36, Article II, Division 5 of the Salinas City Code, to levy a sewer fee for the purpose of paying sanitary sewer related expenses of the City. On January 10, 2012, the City Council approved adjustments to wastewater collection fees effective February 1, 2012 to reflect the cost of wastewater conveyance through the Enterprise and an amount to cover debt service. The fee is billed by the Monterey Regional Water Pollution Control Agency.
On December 20, 2020, the Salinas Public Financing Authority issued City of Salinas Certificates of Participation, Series 2020A totaling $14,425,000. The Advance Refunding Certificates were issued to refund the 2012 Sewer Bonds. Bond started August 1, 2021 a nd will end after 21 years on August 1, 2042. The advance refunding of the 2012 Sewer Bonds reduced total debt se rvice payments over the next 21 years by $3,764,601. This resulted is an economic gain (difference between the present values of th e debt service payments on the old and new debt) of $1,346,741. Debt payable of $12,745,000 is recorded as Business-type Activities at June 30, 2024.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
101
Note 13 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
Direct Placement Debt
2020A Wastewater Revenue Refunding Bonds – Series 2020A (Continued)
In the event of an event of default, the trustee shall, at written direction of the owners of not less than a majority in aggregate principal amount of the bonds at the time out standing, in each case, upon written notice to the City, declare the principal of all the bonds then outstanding, and the interest accr ued thereon, to be due and payable immediately.
Debt service requirements and maturity are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 565,000$ 293,504$ 858,504$
2026 565,000 288,233 853,233
2027 580,000 281,693 861,693
2028 585,000 273,693 858,693
2029 590,000 264,021 854,021
2030-2034 3,145,000 1,135,826 4,280,826 2035-2039 3,520,000 728,801 4,248,801 2040-2044 3,195,000 191,386 3,386,386 Total 12,745,000$ 3,457,157$ 16,202,157$
C. Conduit Debt
In June 1999, the City of Salinas issued Multifamily Housing Revenue Bonds, Series 1999A ($5,310,000 tax- exempt) and 1999A-T ($390,000 taxable) for the constr uction of a 132-unit senior apartment project. Twenty percent (20%) of the project is designated to be affordable to seniors. As of June 30, 2024, the total conduit debt outstanding related to these bonds is $2,590,000.
On June 2007, the City of Salinas issued Economi cs Development Revenue Bonds, Series 2007A ($18,655,000 tax-exempt) and 2007B ($1,570,000 taxable) for the acquisition of a building located at 1000 Main Street in Salinas.
The building is currently leased in part to the County of Monterey Department of Social Services. The project intends to provide monthly rental at below the market value rates to the County of Monterey, a one-million-dollar premise improvement allowance to the Department of So cial Services to renovate and upgrade its space in the building and to generate charitable support for the County’s residents. The debt was refinanced in 2016 as series 2016A and 2016B. As of June 30, 2024, total conduit de bt outstanding related to the Economic Development Revenue Bonds is $11,040,000.
Pursuant to the bond purchase agreements, the City of Sa linas has no obligation related to the repayment of these bonds. Accordingly, the bonds are not reported as liabilities in the City’s financial statements.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
102
Note 13 – Long-Term Debt (Continued)
D. Fiduciary Activities
A summary of changes in long-term debt for fiduciary activities for the year ended June 30, 2024 is as follows:
Amount due Amount due in
Balance Balance within one more than one
July 1, 2023 Additions Retirements June 30, 2024 year year Fiduciary Activities
Direct borrowings and placements:
Homeless Shelter loan payable 157,500$ -$ -$ 157,500$ -$ 157,500$ Total direct borrowings and placements 157,500 - - 157,500 - 157,500 Tax Allocation Refunding Bonds:
1996 Series A 1,360,000 - (1,360,000) - - - Bond premium/(discount):
1996 Series A (8,916) - 8,916 - - - Total Tax Allocation Refunding Bonds 1,351,084 - (1,351,084) - - - Total fiduciary activities 1,508,584$ -$ (1,351,084)$ 157,500$ -$ 157,500$
Loans and Notes Payable
Homeless Shelter Loan – Green Gold Inn
On March 7, 1995, the Salinas Redevelopment Agency – Central Agency Revitalization Project entered into a funding agreement and received a loan from the City of Salinas Community Development Block Grant Fund for the acquisition of property, Green Gold Inn at 28-32 Sole dad Street, to establish a homeless center/shelter. The Agency agreed that the property woul d be used solely for a homeless center/shelter for a period not less than ten years. If the Agency or the organization holding title to the property disposes of the property or alters the use of the property prior to expiration of the ten year period, the Agency will reimburse the City the full amount of the current fair market value less improvement costs.
Upon completion of the ten-year period, one half of the debt, $157,500, was forgiven. Upon cessation of the homeless center/shelter operations, the City will be reimbursed the fair market value of the property less the portion of the loan paid and improvement costs.
Debt service requirements for Green Gold Inn homeless center/shelter no interest loan are as follows:
Fiscal Year
Ending June 30: Principal Interest Total
2025 -$ -$ -$ 2026 - - - 2027 - - - 2028 - - - 2029 - - - 2030-2034 - - - 2035-2039 - - - 2040-2044 157,500 - 157,500 Total 157,500$ -$ 157,500$ City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
103
Note 13 – Long-Term Debt (Continued)
D. Fiduciary Activities (Continued)
Commitment to Monterey Street Parking Structure
In November 2001, the City Council and the Agency en tered into a Disposition and Development Agreement (DDA) with Maya Cinema Holding Company LLC for the development of a 14-Screen, 2,916-seat multiplex movie theater complex on the 100 block of Main Street. To serve this and other developments within the 100 blocks, the DDA committed the City/Agency to construct a five-lev el, 435-space public parking structure on the corner of Monterey Street and Market Street adjacent to the National Steinbeck Center and the Maya Cineplex Theater. The public parking garage opened in June 2005, while the Maya Cinemas Multiplex was completed and opened during July 2005. During FY 2013-14 the Certificates of Particip ation 2004 that funded the construction of the Monterey Street Parking Structure with a balance of $13,870,00 0 at January 2014, was refinanced through the Salinas Facilities Financing Authority by a direct private lease placement with Western Alliance Bancorporation. Because the debt service for the 2004 Certificates was reimbursed to the City from redevelopment tax increment, the savings from the 2004 Certificates was distri buted to affected taxing entities as apportioned by the County of Monterey, including a portion for the City, due to the dissolution of the City’s Redevelopment Agency. With this refinancing, the average annual debt service requirement was reduced by approximately $123,000.
Note 14 – Compensated Absences
Compensated absences are reported on the Government-Wid e Statements for Governmental Activities and Business- type Activities in Long-Term Debt. At June 30, 2024 the liability for all compensated absences totaled $12,587,482.
Compensated absences are reported on the financial statements in the following funds:
Due within Due in more than
July 1, 2023 Increases Decreases June 30, 2024 one year one year Governmental activities:
General Fund 9,033,799 $ 5,749,903$ (5,788,994)$ 8,994,708$ 1,798,941$ 7,195,767$ Measure E 831,067 701,396 (749,839) 782,624 156,524 626,100 Measure G 1,638,951 1,118,514 (1,109,184) 1,648,281 329,656 1,318,625 Other governmental funds 295,607 230,300 (91,791) 434,116 86,823 347,293 Internal service funds 146,242 139,845 (110,564) 175,523 35,105 140,418 Total governmental activities 11,945,666 7,939,958 (7,850,372) 12,035,252 2,407,049 9,628,203 Business-type activities
Enterprise funds 517,316 428,233 (393,319) 552,230 110,445 441,785 Total business-type activities 517,316 428,233 (393,319) 552,230 110,445 441,785 Total primary government 12,462,982$ 8,368,191$ (8,243,691)$ 12,587,482$ 2,517,494$ 10,069,988$
Note 15 – Risk Management
The City has a self-insurance program and carries excess insurance for catastrophic losses. National Casualty Company combined with Berkley National Insurance Company pr ovides General Liability cove rage up to a maximum of $15,000,000 after the self-insured retention of $1,000,000 per occurrence met. Safety National Casualty Corporation provides Worker’s Compensation excess coverage with st atutory coverage (pursuant to California Worker’s Compensation Act) after the self-insurance retention of $1,000,000 for Public Safety and $750,000 for non-Public Safety is met.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
104
Note 15 – Risk Management (Continued)
Liabilities for estimated claims payable for the self-insurance programs represent settled claims, claims incurred but not paid and claims incurred but not reported based upon past experience, modified for current trends and information.
While the ultimate amount of losses incurred through June 30, 2024 is dependent on fu ture developments, City management has determined the desired reserve level for each self-insurance program as follows and believes the estimates are adequate to cover such losses.
The Worker’s Compensation insurance liability of $33,494,000 includes $26,154,834 for claims incurred but not paid and $7,339,166 for claims incurred but not reported which is based on expected claims and past claims history. At June 30, 2024, Worker’s Compensation In surance liability is reported on the st atement of net position. The Worker’s Compensation Fund was established as an Internal Serv ice Fund on July 1, 1991. The portion of the worker’s compensation insurance liability since July 1, 1991, at June 30, 2024 is $ 32,228,925 and is repor ted in the Worker’s Compensation internal service fund and $1,265,075 is treated as general long-term debt.
General liability insurance liability at June 30, 2024 of $3,748,708 that is reported in the Internal Service Fund includes $2,507,589 for claims incurred but not paid and $1,241,119 for claims incurred but not reported which is based on expected claims and past claims history. A deficit of $3,112,425 is reported at June 30, 2024 and is short the City’s goal of reserving three times the self-insured retention plus full fundi ng of all past claims history. The City’s self-insured retention is $1,000,000 at June 30, 2024.
At June 30, 2024, the City’s insurance claims liability is recorded as follows:
Internal S ervice General
Funds Long-term Debt Total
Worker's compensation 32,228,925 $ 1,265,075$ 33,494,000$ General liability 3,748,708 - 3,748,708 Total 35,977,633$ 1,265,075$ 37,242,708$
Changes to the claims liability for fiscal year ended June 30, 2024 are as follows:
Worker's General
Compensation L iability Total
Beginning balance of claims liability 28,187,000$ 3,790,619$ 31,977,619$ Less beginning provisions for incurred
but not reported claims (1,837,241) (1,204,981) (3,042,222) Beginning provisions for incurred but
not paid claims 26,349,759 2,585,638 28,935,397 Increase (decrease) in claims incurred
and reported 9,648,343 604,064 10,252,407 Claims expenses paid (9,843,268) (682,113) (10,525,381) Ending balance provision for incurred
but not paid claims 26,154,834 2,507,589 28,662,423 Provisions for incurred but not
reported claims 7,339,166 1,241,119 8,580,285 Ending balance of claims liability 33,494,000$ 3,748,708$ 37,242,708$ Amount due within one year 6,097,000$ 2,651,167$ 8,748,167$ Amount due in more than one year 27,397,000 1,097,541 28,494,541 Total 33,494,000$ 3,748,708$ 37,242,708$ City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
105
Note 16 – Unearned Revenues and Deferred Inflows of Resources
Governmental funds report unearned re venues in connection with funds recei ved, in advance for which assets recognition criteria have been met, but for which revenue recognition criteria have not been met. Receivables for revenues not considered available to liquidate liabilities of the current period are considered unavailable revenues and reported as deferred inflows of resources on the governmenta l funds. Unearned revenues are stated at $41,756,548, in the Government-Wide Statements. Governmental funds report $41,756,548 of unearned revenues and $3,396,167 of unavailable revenues as deferred inflows of resources that are not available resources.
Unearned revenues of the governmental activities at June 30, 2024 consist of the following:
Gove rnme ntal Acti vi ti e s:
Major funds:
American Rescue Plan Act (ARPA) Fund 25,566,812$
Housing and Urban Development Grant Fund 8,223,567
2019 Special Tax Montebella 7,020,000
Nonmajor funds:
Special revenue funds:
Affordable Housing Fund 856,169
Debt service funds:
Assessment District Debt Service 90,000
Total governmental activities 41,756,548$
Unavailable revenues of the governmental activities at June 30, 2024 consist of the following:
Gove rnme ntal Acti vi ti e s: Type
Major funds:
Housing and Urban Development Grant Fund 932,557$ Housing loans Special revenue funds:
Grants Fund 987,764 Unavailable grants receivable Capital projects funds:
Special Construction Assistance Fund 1,423,846 Unavailable grants receivable Special Aviation Fund 52,000 Unavailable grants receivable Total governmental activities 3,396,167$
Note 17 – Retirement Programs
A. Summary
The City of Salinas provides defined benefit retirement program benefits through the California Public Employees’ Retirement System (“CalPERS”) and New York Life. As of June 30, 2024, the City was contributing to agent multiple-employer defined benefit pension plans and cost-sharing multiple-employer defined benefit pension plans through CalPERS, and was also contributing to a single-employer defined benefit pension plan through New York Life.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
106
Note 17 – Retirement Programs
A. Summary (Continued)
Net pension liabilities are reported in the financial statements as follows:
Governmental Business-Type
Net Pension Liability Activities Activities Total
CalPERS pension plans:
Agent multiple-employer - Miscellaneous 35,618,392$ 5,479,594$ 41,097,986$ Agent multiple-employer - Safety Police 135,418,231 - 135,418,231 Cost sharing multiple-employer - Safety Fire 66,108,004 - 66,108,004 New York Life - single employer 1,722,650 - 1,722,650 Total net pension liability 238,867,277$ 5,479,594$ 244,346,871$
Deferred outflows of resources related to pensions are reported in the financial statements as follows:
Governmental Business-Type
Deferred Outflows of Resources Activities Activities Total CalPERS pension plans:
Agent multiple-employer - Miscellaneous 12,562,607$ 1,932,653$ 14,495,260$ Agent multiple-employer - Safety Police 24,980,144 - 24,980,144 Cost sharing multiple-employer - Safety Fire 27,613,381 - 27,613,381 New York Life - single employer $358,571 - 358,571 Total deferred outflows of resources 65,514,703$ 1,932,653$ 67,447,356$
Deferred inflows of resources related to pensions are reported in the financial statements as follows:
Governmental Business-Type
Deferred Inflows of Resources Activities Activities Total CalPERS pension plans:
Agent multiple-employer - Miscellaneous 876,173$ 134,793$ 1,010,966$ Agent multiple-employer - Safety Police $976,882 - 976,882 Cost sharing multiple-employer - Safety Fire 2,248,503 - 2,248,503 New York Life - single employer - - - Total deferred inflows of resources 4,101,558$ 134,793$ 4,236,351$
Pension expense reported in the financial statements as follows:
Governmental Business-Type
Pension Expense Activities Activities Total
CalPERS pension plans:
Agent multiple-employer - Miscellaneous 7,057,661$ 1,085,763$ 8,143,424$ Agent multiple-employer - Safety Police 19,530,182 - 19,530,182 Cost sharing multiple-employer - Safety Fire 11,064,551 - 11,064,551 New York Life - single employer (20,272) - (20,272) Total pension expense 37,632,122$ 1,085,763$ 38,717,885$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
107
Note 17 – Retirement Programs (Continued)
B. California Public Employees Retirement System Agent Multiple-Employer Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City of Salinas’ separate Safety (police) and Miscellaneous (all other) Plans, agent multiple -employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS i ssues 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.
Employees Covered
At June 30, 2023, the measurement date, the following employees were covered by the benefit terms for the Plan:
Miscellaneous Safety - Police
Inactive employees or beneficiaries currently receiving benefits 229 292 Inactive employees entitled to, but not yet receiving benefits 282 124 Active employees 306 140
Total 817 556
Benefits Provided
CalPERS provides service retirement and disability benefits, a nnual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment.
The City’s provisions and benefits in effect at June 30, 2024 are summarized as follows:
Prior to On or After
January 1, 2013* January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50-55 52-67
Monthly benefits, as a % of eligible
compensation 2.0% to 2.45% 1.0% to 2.5%
Required employee contribution rates 7.00% 7.00%
Required employer contribution rates 9.73% 9.73%
Miscellaneous
Hire date
Prior to On or After
January 1, 2013* January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 52-57
Monthly benefits, as a % of eligible
compensation 3.00% 2.0% to 2.7%
Required employee contribution rates 9.00% 13.50%
Required employer contribution rates 23.56% 23.56%
Safety - Police
Hire date
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
108
Note 17 – Retirement Programs (Continued)
B. California Public Employees Retirement System Agent Multiple-Employer Plans (Continued)
Contribution Description - Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employe rs are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.
Payments made by the City to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
The contributions made by the City were as follows:
Employer Contributions
Miscellaneous 4,446,483 $
Safety - Police 6,941,602
Actuarial Methods and Assumptions used to determine Total Pension Liability - 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:
Valuation Date
M easurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Morta l i ty Ra te Ta bl e
Post Retirement Benefit Increase
June 30, 2022
June 30, 2023
Entry Ag e Actuarial Cost Method
6.90%
2.50%
Varies by Entry Age and Service
The probabilities of mortality are based on the 2021 CalPERS Experience Study. Mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
The probabilities of retirement are based on the 2021 CalPERS Experience Study.
(1) The mortality table used was developed based on Ca lPERS-specific data. The ta ble includes 15 years of mortality improvement using Society of Actuaries 90% of Scale MP-2016. For more details on this table, please refer to the December 2021 Experience Study report that can be found on the CalPERS website.
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.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
109
Note 17 – Retirement Programs (Continued)
B. California Public Employees Retirement System Agent Multiple-Employer Plans (Continued)
Benefits Provided (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short- term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long -term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected rates of return by asset class are as follows:
Asset Class Assumed Asset Allocation Real Return Years 1 - 10 1,2
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%
Total 100.00%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-22 Asset Liability Management study.
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.
Amortization of Deferred Outflows and Deferred Inflows of Resources - Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pens ion expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
110
Note 17 – Retirement Programs (Continued)
B. California Public Employees Retirement System Agent Multiple-Employer Plans (Continued)
Benefits Provided (Continued)
The amortization period differs depending on the source of the gain or loss:
Difference between projected and actual earnings on pension plan investments:
5 years straight-line amortization
All other amounts:
Straight-line amortization over the average expected re maining service lives (EARLS) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
Deferred outflows of resources and deferred inflows of resources relating to Differences between Expected and Actual Experience, Changes of Assumptions and employer-specific amounts should be amortized over the EARSL of members provided with pensions through the Plan. The EARSL for the miscellaneous and safety (police) plans for the June 30, 2023 measurement date are 4.3 and 3.1 years, respectively, which was obtained by dividing the total service years by the total number of participants (active, inactive, and retired) in the Plan. Inactive employees and retirees have remaining service lifetimes equal to zero. Total future service is based on the members' probability of decrementing due to an event other than receiving a cash refund.
Changes in Net Pension Liability - The following tables show the changes in the net pension liability for each of the City’s agent multiple-employer defined benefit pension plans recognized over the measurement period:
Total Pension Liability
Plan Fiduciary Net
Position Net Pension Liability
Balance at June 30, 2022 (Valuation Date) 151,719,779$ 113,875,517$ 37,844,262$ Changes in the year:
Service cost 3,883,129 - 3,883,129 Interest on the total pension liabilities 10,520,930 - 10,520,930 Changes of Benefit Terms 163,259 - 163,259 Changes in assumptions - - - Differences between expected and actual experience 2,096,099 - 2,096,099 Benefit payments, including refunds of members contributions (6,886,917) (6,886,917) - Plan to plan resource movement - - - Contributions - employer - 4,713,873 (4,713,873) Contributions - employee - 1,688,999 (1,688,999) Net investment income - 7,090,560 (7,090,560) Administrative expenses - (83,739) 83,739 Net changes 9,776,500 6,522,776 3,253,724 Balance at June 30, 2023 (Measurement Date) 161,496,279$ 120,398,293$ 41,097,986$ Miscellaneous Plan
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
111
Note 17 – Retirement Programs (Continued)
B. California Public Employees Retirement System Agent Multiple-Employer Plans (Continued)
Benefits Provided (Continued)
Total Pension Liability
Plan Fiduciary Net
Position Net Pension Liability
Balance at June 30, 2022 (Valuation Date) 360,247,773$ 229,014,170$ 131,233,603$ Changes in the year:
Service cost 6,485,353 - 6,485,353 Interest on the total pension liabilities 24,606,993 - 24,606,993 Changes of Benefit Terms 146,047 - 146,047 Changes in assumptions - - - Differences between expected and actual experience 2,343,505 - 2,343,505 Benefit payments, including refunds of members contributions (18,713,828) (18,713,828) - Plan to plan resource movement - - - Contributions - employer - 13,151,466 (13,151,466) Contributions - employee - 2,176,654 (2,176,654) Net investment income - 14,237,556 (14,237,556) Administrative expenses - (168,406) 168,406 Net changes 14,868,070 10,683,442 4,184,628 Balance at June 30, 2023 (Measurement Date) 375,115,843$ 239,697,612$ 135,418,231$ Safety - Police
Pension Plan Fiduciary Net Position - Detailed information about each plan’s fiduciary net position is available in the separately issued CalPERS financial report.
Sensitivity of the Net Pension Liability to Changes in th e Discount Rate - The following presents the net pension liability of the Plan as of the Measurement Date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous 63,885,823$ 41,097,986$ 22,362,879$ Safety - Police 187,469,647 135,418,231 92,993,970 Plan's Aggregate Net Pension L iability/(Asset)
Pension Expense and Deferred Outflows and Deferred Inflows of Resour ces Related to Pensions For the measurement period ending June 30, 2023 (the measurement date), the City of Salinas recognized a pension expense of $8,143,424 and $19,530,182 for the miscellaneous and safety (police) plans, respectively.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
112
Note 17 – Retirement Programs (Continued)
B. California Public Employees Retirement System Agent Multiple-Employer Plans (Continued)
For the measurement period ending June 30, 2023 (the measurement date), the City of Salinas reports other amounts for the miscellaneous and safety (police) plans as deferred outflow and deferred inflow of resources related to pensions as follows:
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 4,446,483$ -$ Difference between projected and actual
earning on pension plan investments 5,427,855 - Changes in assumptions 2,776,121 - Differences between expected and actual experience 1,844,801 (1,010,966) Total 14,495,260$ (1,010,966)$ Miscellaneous
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 6,941,602$ -$ Difference between projected and actual
earning on pension plan investments 10,880,864 - Changes in assumptions 5,570,142 - Differences between expected and actual experience 1,587,536 (976,882) Total 24,980,144$ (976,882)$
Safety - Police
$4,446,483 and $6,941,602 reported as deferred outflows of resources to contributions subsequent to the measurement date for the miscellaneous and safety police pl ans, respectively, will be recognized as a reduction of the net pension liability in the year ending June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Safety - Police
Year Ended June 30,
2025 2,530,658$ 5,879,603$ 2026 1,920,326 3,262,265 2027 4,291,961 7,632,396 2028 294,866 287,396 2029 - - Thereafter - - 9,037,811$ 17,061,660$ Deferred Outflows/
(Inflows) of Resources
Deferred Outflows/
(Inflows) of Resources
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
113
Note 17 – Retirement Programs (Continued)
C. California Public Employees Retirement System Cost-Sharing Multiple-Employer Plan
Plan Description – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety risk pool (Fire Tier 1 & Tier 2), cost -sharing multiple-employer defined benefit pension plans administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans ar e established by State statute and Local Government 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.
Employees Covered – As of June 30, 2023 (measurement date), the follo wing employees were covered by the benefit terms for the plan:
Safety - Fire
Inactive employees or beneficiaries currently receiving benefits 190 Inactive employees entitled to, but not yet receiving benefits 59 Active employees 98
Total 347
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment.
The City’s plans provisions and benefits in effect at June 30, 2024, are summarized as follows:
Prior to On or After Prior to On or After
January 1, 2013* January 1, 2013 January 1, 2013* January 1, 2013 Benefit formula 3.0% @ 50 2.7% @ 57 3.0% @ 55 2.5% @ 57 Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 52-57 55 52-57
Monthly benefits, as a % of eligible
compensation 3.00% 2.0% to 2.7% 3.00% 2.0% to 2.7%
Required employee contribution rates 9.00% 13.75% 9.00% 13.75% Required employer contribution rates 29.09% 13.75% 24.79% 13.75% Hire date
Safety - Fire
Tier 1 Tier 2
Contribution Description – Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS annual actuarial valua tion process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employe r is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
The City’s contribution for the safety fire plan were as follows:
Empl oye r Contri buti ons
Safety - Fire 7,254,285$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
114
Note 17 – Retirement Programs (Continued)
C. California Public Employees Retirement System Cost-Sharing Multiple-Employer Plan (Continued)
Pension Liabilities, Pension Expense and Deferred Outflows/Deferred Inflows of Resources Related to Pensions – As of June 30, 2024, the City reported net pension liabilities for its proportionate share of the net pension liability as of June 30, 2024 and 2023 were as follows:
Plan Total Pension Plan Fiduciary Net Plan Net Pension
L iability Position L iability/(Asset)
Balance at: 6/30/22 (Measurement date) 205,362,463$ 144,073,967$ 61,288,496$ Balance at: 6/30/23 (Measurement date) 215,981,309 149,873,305 66,108,004 Net changes during 2022-2023 10,618,846$ 5,799,338$ 4,819,508$ Increase (Decrease)
The City’s net pension liability is measured as the proportionate share of the net pension liability. The net pension liability is measured as of June 30, 2023, and the total pe nsion liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 20 22 rolled forward to June 30, 2023 using the standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long- term share of contributions to the pension plans relative to the projected contributions for all participating employers actuarially determined.
The City’s proportionate share of the net pension liability as of the June 30, 2023 and 2022 measurement dates were as follows:
Proportion June 30, 2022 0.530600%
Proportion June 30, 2023 0.529910%
Change - Increase (Decrease) -0.000690%
Percentage Share of Net Pension L iability/(Asset)
For the year ended June 30, 2024 (m easurement date June 30, 2023), the City of Salinas recognized a pension expense of $11,064,551 for the Safety Plan (Fire).
As of June 30, 2024 the City reports deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 7,254,285$ -$ Difference between projected and actual earning on
pension plan investments 9,046,862 - Adjustment due to differences in proportions 1,887,152 - Changes in assumptions 3,858,152 - Difference between actual and expected experience 4,853,546 (415,515) Difference between employer's actual contributions
and proportionate share of contributions 713,384 (1,832,988) Total 27,613,381$ (2,248,503)$
Safety - Fire
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
115
Note 17 – Retirement Programs (Continued)
C. California Public Employees Retirement System Cost-Sharing Multiple-Employer Plan (Continued)
$7,254,285 reported as deferred outflows of resources for contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expenses as follows:
Year Ended June 30,
Deferred Outflows/
(Inflows) of Resources
2025 6,065,733$
2026 4,304,464
2027 7,487,882
2028 252,514
Thereafter -
18,110,593$
Actuarial Methods and Assumptions used to determine Total Pension Liability - 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:
Valuation Date
M easurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Morta l i ty Ra te Ta bl e
June 30, 2022
June 30, 2023
Entry Age Actuarial Cost Method
6.90%
2.30%
Varies by category, entry age, and service
Derived using CalPERS’ Membership Data for all Funds.
The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 80% of the Society of Actuaries’ Scale MP-2020
Discount Rate - The discount rate used to measure the total pension liability for PERF C 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 peri ods of projected benefit paym ents 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.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
116
Note 17 – Retirement Programs (Continued)
C. California Public Employees Retirement System Cost-Sharing Multiple-Employer Plan (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short- term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as follows:
Asset Class
Assumed
Asset
Allocation
Real Return
Years 1 -
10 1,2
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%
Total 100.00%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-22 Asset Liability Management study.
Amortization of Deferred Outflows and Deferred Inflow s of Resources – The Net Difference Between Projected and Actual Investment Earnings on Pension Plan Investments is amortized over a five-year period on a straight-line basis. One-fifth is recognized in pension expense during the measurement period, and the remaining Net Difference Between Projected and Actual Investment Earnings on Pe nsion Plan Investments is amortized over the remaining amortization periods. The Net Difference Between Projected and Actual Investment Earnings on Pension Plan Investments in the Schedule of Collective Pension Amounts represents the unamortized balance relating to the current measurement period and the prior measurement periods on a net basis.
Deferred Outflows of Resources and Deferred Inflows of Resources relating to Differences Between Expected and Actual Experience and Changes of Assumptions are am ortized over the Expected Average Remaining Service Lifetime (EARSL) of members provided with pensions th rough the Plan determined as of the beginning of the related measurement period. The EARSL for PERF C for the measurement date ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total num ber of participants: active, inactiv e, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
117
Note 17 – Retirement Programs (Continued)
C. California Public Employees Retirement System Cost-Sharing Multiple-Employer Plan (Continued)
Sensitivity of Proportionate Share of Net Pension Liability (Asset) to Changes in the Discount Rate – The following presents the proportionate share of the net pension liability of the City’s Plan as of the Measurement Date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 per cent) or 1 percentage-point higher (7.90 percent) than the current rate:
Discount Rate - 1 % Current Discount Discount Rate + 1% (5.90%) Rate (6.90%) (7.90%)
95,736,797$ 66,108,004$ 41,884,358$ Plan's Aggregate Net Pension L iability/(Asset)
Pension Plan Fiduciary Net Position – Detailed information about each plan’s fiduciary net position is available in the separately issued CalPERS financial report.
D. New York Life Single Employer Retirement Plan
Plan Description – The New York Life retirement plan is a closed single-employer defined benefit pension plan that covers Non-Public Safety Employees. The plan’s benefits offers a formula of 2% @ 60 for vested employees.
The Plan was established on September 1, 1954 and has been amended and restated from time to time since that date. Prior Plan amendments eliminated the six-month service requirement for entry into the plan and credited participants with up to six-months of service from hire to plan entry prior to time change. The Plan was amended and restated effective September 1, 1996 to bring the Plan into compliance with the Internal Revenue Code and Regulations promulgated there by to provide for the City’s pick-up of em ployee eligible participants equal to the present value of vested accrued benefits. Effective June 1, 2001, the Plan amended its benefit formula to one that uses an average salary computed from the twelve-month period, replacing the old formul a that used an average salary computed from a thirty six month period. As of June 19, 1995, all new regular non-public safety employees are enrolled in CalPERS.
The City has an agreement with New York Life to hold and invest plan assets of the Retirement Plan, which covers employees other than Police and Fire. New York Life holds assets in NYL Fixed Dollar Account, NYL Mainstay Total Return Bond Fund, and NYL Guaranteed Annuity Contracts.
New York Life Guaranteed Annuity Contracts in the amount of $8,239,722 are allocated insurance contracts set up to pay benefits and accordingly are excluded from the tota l pension liability, and are not reported in the City’s financial statements.
Employees Covered – As of September 1, 2023 (valuation date), the followi ng employees were covered by the benefit terms for the single-employer defined benefit pension plan:
NY Life Plan
Inactive employees or beneficiaries currently receiving benefits 40 Inactive employees entitled to, but not yet receiving benefits 5 Active employees 4
Total 49
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
118
Note 17 – Retirement Programs (Continued)
D. New York Life Single Employer Retirement Plan (Continued)
Benefits – Non-Public Safety personnel benefits vest after five years of service. The vested benefit would be in the form of a pension beginning after attaining age 60 equal to the benefits accrued at time of termination, or for a reduced amount if an election is made to have payments commence before attaining the normal retirement age of
60. City employees who retire at or after age of 60 with five years of credited service are entitled to an annual retirement benefit payable monthly, as a straight line annu ity, as a ten year certain and life annuity, or as a lump sum, in an amount equal to 2% of the average earnings paid to the employee during the twelve consecutive months of service with the City during which their earnings were highest, multiplied by the number of years and completed months of plan participation.
The plan allows early retirement after reaching age 55 and completing five years of plan participation. The plan also provides death and survivor benefits.
Funding Policy – The contribution requirements of Plan members and the City are established and may be amended by the City Council. Prior to January 1, 1979, participants were required to make specified levels of contributions to the plan in order to accrue benefits under the Pl an. For the period commencing January 1, 1979 through December 31, 1993, there were no participants’ contributions under this Plan. Since January 1, 1994, participants are required to contribute 4.5% of their compensation to the Plan. Since September 1, 1996, participant contributions are made by the City under the employee pretax pick-up provision for government-sponsored plans allowed under the Internal Revenue Code. As establishe d in their Memorandum of Understanding document for personnel of the SEIU Blue Collar bargaining group, the C ity will contribute four and one-half percent of the employee retirement contribution.
Pension Liabilities, Pension Expense and Deferred Outflows /Inflows of Resources Related to Pensions – As of June 30, 2024 (Measurement Date - August 31, 2023) and June 30, 2023, (Measurement Date – August 31, 2022), the City reported net pension liability as follows:
Plan Total Pension Plan Fiduciary Net Plan Net Pension
L iability Position L iability/(Asset)
Balance at: 8/31/22 (measurement date) 10,058,747$ 6,349,819$ 3,708,928$ Balance at: 8/31/23 (measurement date) 9,962,372 8,239,722 1,722,650 Net changes during 2022-2023 (96,375)$ 1,889,903$ (1,986,278)$ Funded Status @ 8/31/23 measurement date 82.71%
Increase (Decrease)
The City’s net pension liability is measured as of August 31, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of September 1, 2023.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
119
Note 17 – Retirement Programs (Continued)
D. New York Life Single Employer Retirement Plan (Continued)
Changes in Net Pension Liability – The following tables show the changes in the net pension liability for the City’s Single-Employer Pension Plan recognized over the measurement period:
Total Pension
L iability
Plan Fiduciary
Net Position
Net Pension
L iability
Balance at 6/30/2023 (8/31/22 measurement date) 10,058,747 $ 6,349,819$ 3,708,928$ Changes in the year:
Service cost 91,735 - 91,735 Interest on the total pension liabilities 274,479 - 274,479 Changes in assumptions (522,172) - (522,172) Differences between expected and actual experience 398,477 - 398,477 Benefit payments, including refunds of members contributions (338,894) (338,894) - Plan to plan resource movement - - - Contributions - employer - 2,180,872 (2,180,872) Contributions - employee - 18,087 (18,087) Net investment income - 46,143 (46,143) Administrative expenses - (16,305) 16,305 Net changes (96,375) 1,889,903 (1,986,278) Balance at June 30, 2024 (8/31/23 measurement date) 9,962,372$ 8,239,722$ 1,722,650$ New York Life Plan
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the Plan as of the Measurement Date, calculated using the discount rate of 2.75 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (1.75 percent) or 1 percentage-point higher (3.75 percent) than the current rate:
Discount Rate - 1% Current Discount Discount Rate + 1%
(1.75%) Rate (2.75%) (3.75%)
2,539,601$ 1,722,650$ 1,064,752$ Sensitiv ity of Net Pension L iability/(Asset)
As of June 30, 2024, the City reports deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 153,759$ -$
Difference between projected and actual earning on pension plan investments 204,812 -
Total 358,571$ -$
New York Life Plan
$153,759 reported as deferred outflows of resources for cont ributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
120
Note 17 – Retirement Programs (Continued)
D. New York Life Single Employer Retirement Plan (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expenses as follows:
Year Ended June 30,
Deferred Outflows/
(Inflows) of Resources
2025 (14,119)$
2026 29,149
2027 163,280
2028 26,502
2029 -
Thereafter -
204,812$
Actuarial Methods and Assumptions used to Determine Total Pension Liability – For the measurement period ended August 31, 2023 (measurement date), the total pension liability was determined by using the following actuarial assumptions, applied to all periods included in the measurement:
Valuation date
M easurement date
Contribution policy
Actuarial cost method
Actuarial assumptions:
Discount rate
Long-term expected rate of return on
assets
Municipal Bond Rate (Bond Buyer 20-
Bond Index)
General Inflation
Cost of Living Increases
Morta l i ty
M ortality imp rovement
Salary Increases
Retirement
Disability, termination
Benefit form for current actives
NY Life guaranteed annuity contract
September 1, 2023
Value of payments expected to be made under contract excluded from TPL (contract assets not included in FNP)
September 1, 2023
Individual Aggregate Cost M ethod
- 2.75% at August 31, 2023
- 2.75% at August 31, 2022
- Discount rate lower of (1) expected long-term rate of return on investments, and (2) Bond Buyer 20- Bond GO Index as of the M easurement Date
2.00% annually
Aggregate - 2.5% annually; merit - CalPERS 2000-2019 Experience Study 100% retire once the retirement benefit reaches 70% of the average monthly compensation
None
City contributes full ADC
CalPERS 2000-2019 Experience Study
M ortality projected fully generational with Scale M P-2021 - Disability - n/a
- Service retirement - Lump sum for all participants, valued using UP-1984 Mortality Table with 2% interest rate without COLA
2.25% annually
- 2.75% at August 31, 2023
- 2.75% at August 31, 2022
- 3.81% at August 31, 2023
- 3.59% at August 31, 2022
Changes Since Prior Measurement Date – The following changes were applied since the prior measurement date of August 31, 2023:
Changes of assumptions - discount rate was updated based on municipal bond rate as of the measurement date.
Changes of benefit terms - none
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
121
Note 17 – Retirement Programs (Continued)
D. New York Life Single Employer Retirement Plan (Continued)
Discount Rate – The discount rate used to measure the total pension liability was 2.75%. The discount rate is based on the expected rate of return which is lower than th e 20-year municipal bond rate. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at current contribution rates and City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the employee rate.
Based on those assumptions, the pension plan’s fiduciary net position was not projected to be available to make all projected future benefit payments of current active and inactive employees. The City’s annual contributions will be adjusted to keep the plan solvent.
E. ICMA Retirement Corporation Defined Contribution Plan
Investments are with New York Life. Expected rate of return is as follows:
Target E xpected Rate
Asset Class Allocation of Return
Fixed income 100.00% 0.78%
Assumed long-term rate of inflation 2.25%
Expected long-term rate of return, rounded 2.75%
Pension Plan Fiduciary Net Position – Detailed information about the pensi on plan’s fiduciary net position as of August 31, 2023 is as follows:
New York
Li fe
Assets:
Investments:
New York Life Mainstay Total Return Bond Fund 8,239,722$ Total investments 8,239,722
Fiduciary net position 8,239,722$
Plan Description – On June 19, 1995, the City established a qualified retirement program in accordance with Internal Revenue Code Section 401(a). This defined contribution 401(a) Money Purchase Retirement Plan was established with International City Managers Association Retirement Corporation (ICMA). Non-Public Safety Mid- Management employees that were participating in the ICMA 457 non-qualified deferred compensation plan in-lieu of participation in the New York Life Retirement Program, were required to transfer to one of the other City’s three qualified retirement plans. The City’s annual contribution to this plan is determined by the employer required contribution to the New York Life Plan Retirement Plan in accordance with Internal Revenue contribution limits.
Significant Accounting Policies
Basis of Accounting – Financial statements are prepared using the cash basis of accounting. Employer contributions are recognized in the period that the contributions are made.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
122
Note 17 – Retirement Programs (Continued)
E. ICMA Retirement Corporation Defined Contribution Plan (Continued)
Significant Accounting Policies (Continued)
Method Used to Value Investments – Participants direct their investments, without restriction, among various investments options available under the ICMA 401(a) Plan. Retirement Buyback Program During Fiscal Year 1995- 96, the City established a deferred compensation retirement buyback program for Department Directors where the City contributes a flat dollar amount based on tenure with the City. The 401(a) Money Purchase Retirement Plan is administered by the ICMA Retirement Corporation. The program requires employee-matching contributions for every dollar contributed by the City. At June 30, 2024, there were four participants receiving a total of $201,213 in this form of benefit.
F. Deferred Compensation Plans
The City has four deferred compensation plans created in accordance with Internal Revenue Code Section 457. The Small Business Job Protection Act of 1996 requires the establishment of a trust or similar vehicle to ensure that the assets of Deferred Compensation Plans under the Internal Revenue Code Section 457 are protected and used exclusively for the benefit of Plan participants and/or their beneficiaries. According to these laws the City established Employer Trust arrangements for each of the Plans before January 1, 1999.
The City has established Employer Trust agreements with ICMA Retirement Corporation, Mass Mutual Financial Group, and Central Coast Credit Union. In 1998, the City Council adopted a Resolution amending the City administered deferred compensation plans to conform to the new law protecting the plan participant assets from any claim against the City. Under the Trust arrangement, individual accounts maintained by the record-keeper used for receiving contributions and paying di stributions must be subject to the Tr ust. The existence of the Trust does little to change the Plan structure excep t to add a layer of protection for money set aside for the employee against claims of the Employer’s creditors. The law also allows an increase in the amount a participant may contribute to differ each year, based on changes in the consumer price index.
International City Manager’s Association (ICMA) Retirement Corporation
As of June 2021, the International City Manager’s A ssociation Retirement, Inc., (ICMA-RC), is now Mission Square Retirement and the Plan had 454 participants and a balance of $70,702,177 at June 30, 2024. All employees are eligible to participate through voluntary salary deduction. Some management employees participated in lieu of participation in the New York Life Retirement Program until June 19, 1995 when a qualified 401(a) retirement program was established. These assets are not reported on the City’s financial statements at June 30, 2024 pursuant to the Employer Trust established by the City with ICMA Retirement Corporation during November 1997.
Trust Deed Program
The City administers a Trust Deposit Fund that includes a deferred compensation plan funded solely by the voluntary salary reductions. The goal of the Trust Deed program is to invest participants’ funds in short-term deeds of trust (notes). This investment option is administer ed within the City of Salinas by the City’s appointed administrator of the Deferred Compen sation Plan. Loans are based on equity after obtaining a fee appraisal. All property is physically inspected and the loan package is reviewed and appr oved/disapproved by a Deferred Compensation Committee. All employees are eligible to participate. The Plan had 210 participants and a balance of $5,564,620 in net position at Ju ne 30, 2024. The balance in these plan s is available to employees only upon termination, retirement, death or unforeseen emergenc y. While the Employer Trust established by the City on December 15, 1998 protects these funds from creditors of the City, because the City ad ministers the plan assets, they are included in the City’s financial statements at June 30, 2024.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
123
Note 17 – Retirement Programs (Continued)
F. Deferred Compensation Plans (Continued)
Trust Deed Program (Continued)
The Trust Deed Program is managed on a cash basis with interest posted when received and expenditures posted when paid. Interest and expenditures are allocated to pa rticipants based on month end cash balances. Trust deed notes secured by property taken back in foreclosure, are reevaluated based on the current market value of the property. When the value of property taken back in for eclosure is less than the note secured by that property, the note is written-down to current market value (less forecl osure and sales expenses) of the property. Gains are recognized only when properties are sold. Gains or losses ar e allocated to plan participants based on month end cash balances.
As of June 30, 2024, pursuant to GAS B 72, properties held for resale were valued by independent real estate professionals (market approach) and trust deed notes were valued at their present value (income approach). The valuations are considered Level 3. Th e value of properties held for resale are reduced for cost of sales. The notes (loans) are valued based on amounts investors would likel y pay for notes with interest rates ranging from 6% for all current loans discounted to provide loan to valu es ranging from 70% to 50% depending on property type and condition, borrowers payment history and term remaining on note. The change in net realizable values are reflected in the Statement of Changes in Fiduciary Net Assets.
Mass Mutual Financial Group (Empower Retirement)
The fourth Deferred Compensation plan was established in September 2000. This retirement savings plan enables employees to defer a portion of their current compensation for payment at later date, generally retirement. Salary deferrals (or contributions) are voluntary and are made through the ease of payroll deduction. Empower Retirement former Mass Mutual offers a variety of investment vehicles that vary in risks, term and return to the investment.
These investment options are offered through a group variable annuity contract. There were 38 participants with a balance of $3,276,842 at June 30, 2024. All employees are eligible to participate through voluntary salary deductions. The assets for this plan are not reported on the City’s financial statements.
Note 18 – Other Postemployment Benefits
Items related to other postemployment benefits are recorded in the financial statements as follows:
Governmental Business-Type
Activities Activities Total
Net OPEB Liability 12,171,211$ 786,950$ 12,958,161$ Deferred outflows of resources 3,812,475 246,503 4,058,978 Deferred inflows of resources 12,294,807 794,941 13,089,748 OPEB expense (credit) (81,989) (5,301) (87,290)
A. General Information About the OPEB Plan
For purposes of measuring the net OPEB liability, deferred outflows of resources, and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis.
Generally accepted accounting principles require that th e reported results must pertain to liability and asset information within certain defined timeframes.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
124
Note 18 – Other Postemployment Benefits (Continued)
A. General Information About the OPEB Plan (Continued)
For this report, the following timeframes are used:
Valuation date June 30, 2023
Measurement date June 30, 2023
Measurement period July 1, 2022 to June 30, 2023
Fiscal year end June 30, 2024
Plan Description: The City joined the Public Employees' Medical & Hospital Care Act (PEMHCA) in 2000 for Police and Miscellaneous employees, offered through the California Public Employees’ Retirement System (CalPERS). It is an agent multiple-employer plan administered by California Public Employees’ Retirement System (CalPERS). The healthcare plan which provides medical insurance benefits to active and eligible retirees and their families in accordance with various la bor agreements. Fire employees receiv e healthcare benefits for active and retiree members from a union sponsored plan.
OPEB Trust: The City joined The California Employer s’ Retiree Benefit Trust (CERBT) in 2011 to prefund it’s OPEB liability. CERBT is an agent multiple employer defined plan for other postemployment benefits administered by CalPERS. The Plan includes participating employers of the State of California and public agencies. CalPERS is governed by a 13-member Board of Administration (the Board); two elected by CalPERS members, one elected by retired members of CalPERS, two appointed by the Gove rnor, one public representative appointed jointly by the Speaker of the Assembly and Senate Rules Committee, and four ex-officio members: State Treasurer, State Controller, Director of California Department of Human Resources, and Designee of the State Personal Board. The Board is responsible for the management and control of CalPERS, including the exclusive control of the administration and investments of the Plan.
The plan information is as follows:
Fiscal year end June 30, 2024
Plan type Agent multiple-employer
OPEB trust Yes
Special funding situations No
Nonemployer contributing entities No
Post-Employment Benefits Eligibility: The City provides post-retirement healthcare benefits to eligible employees who retire directly from the City after the age of 50 years (Age 52 for Miscellaneous PEPRA employees) and with five years of service or disability retirement. For Police a nd Fire Supervisors, the City pays 25% of retiree and spouse health insurance premium up to $100 per month plus PEMHCA AB2544 “unequal method” monthly benefit to retirees ($158 per month in 2024). The payment is made until Medicare eligibility, but no more than 10 years for non-supervisory Police retirees. For Miscellaneous employees, the City pays the PEMHCA “unequal method” monthly benefit to retirees ($158 per month in 2024). For IAFF (Fire employee), the City pays 25% of retiree and spouse health insurance premium up to $100 per month. The payment is made until Medicare eligibility.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
125
Note 18 – Other Postemployment Benefits (Continued)
A. General Information About the OPEB Plan (Continued)
Employees Covered: As of the June 30, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms under the PEMHCA and Union Sponsor Plans:
Number of
Covered
Participants
Inactive employees currently receiving benefits 155
Inactive employees entitled to, but not yet receiving benefits 315 Active employees 566
Total 1,036
Contributions: The City intends to contribute to the Trust the actuarially determined contribution (“ADC”) net of the pay-as-you-go benefits paid annually directly from employer resources. For the fiscal year ended June 30, 2024, the City’s cash contributions were $303,519 in premium payments made on behalf of retirees, implied subsidy payments of $310,957, and administrative expenses of $6,796, resulting in total payments of $621,272.
Discount Rate: The discount rate used to measure the total OPEB liability was 4.95%. The projection of cash flows used to determine the discount rate assumed that City cont ributions will be made at rates equal to the actuarially determined contribution rates. 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.
Expected Long Rate of Return: The long-term expected ra te of return on OPEB plan investments was determined using a building block method in which 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 r eal rates of return by the target asset allocation percentage and by adding expected inflation. Th e target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class
Target Allocation
CERBT-Strategy
1 Expe cte d Re al
Rate of Return
Global equity 49.00% 4.56%
Fixed income 23.00% 1.56%
TIPS 5.00% -0.08%
Commodities 3.00% 1.22%
REITs 20.00% 4.06%
100.00%
Assumed long-term rate of inflation 2.50%
Expected long-term rate of return, rounded 6.25%
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
126
Note 18 – Other Postemployment Benefits (Continued)
B. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB
Changes in the OPEB Liability: The changes in the net OPEB liability for the City Plan are as follows:
Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability
Balance at June 30, 2023 19,384,137$ 3,853,920$ 15,530,217$ Changes Recognized for the M easurement Period:
Service Cost 825,453 - 825,453 Interest on the total OPEB liability 982,077 - 982,077 Changes in benefit terms - - - Difference between expected and actual experience (2,049,364) - (2,049,364) Changes in assumptions (1,094,099) - (1,094,099) Contribution from the employer - 996,208 (996,208) Net investment income - 248,010 (248,010) Administrative expenses - (8,095) 8,095 Benefit payments (739,295) (739,295) - Net changes during July 1, 2023 to June 30, 2024 (2,075,228) 496,828 (2,572,056) Balance at June 30, 2024 17,308,909$ 4,350,748$ 12,958,161$
Discount Rate Sensitivity Analysis: The following schedul e shows the impact of the Net OPEB Liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used (3.87%) in measuring the Net OPEB Liability.
Discount Rate -1% Current Discount Rate Discount Rate +1% (4.21%) (5.21%) (6.21%)
15,089,727$ 12,958,161$ 11,172,842$ Plan's Total OPEB Liabiltiy
Healthcare Trend Sensitivity Analysis: The following presents the net OPEB liability of the City if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
Healthcare Cost
-1% Trend Rat e +1%
10,921,862$ 12,958,161$ 15,478,841$ Plan's Total OPEB Liabiltiy
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
127
Note 18 – Other Postemployment Benefits (Continued)
B. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB:
For the fiscal year ended June 30, 2024, the City recognized OPEB expense/(credit) of $(87,290).
As of fiscal year ended June 30, 2024 , the City reported deferred outflows of resources and inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Contributions made after measurement date 621,272$ -$ Differences between expected and actual experience - (6,317,422) Changes in assumptions 3,157,385 (6,772,326)
Net difference between projected and actual
earnings of OPEB Plan investments 280,321 - 4,058,978$ (13,089,748)$
Deferred outflows of resources in the amount of $621,272 related to contributions subsequent to the measurement date and will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2025.
Other amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expenses as follows:
Year Ending
June 30 Amount
2025 (1,651,412)$
2026 (1,670,658)
2027 (1,440,631)
2028 (1,492,693)
2029 (1,383,605)
Thereafter (2,013,043)
Total (9,652,042)$
Recognition of Deferred Outflows and Deferred Inflows of Resources: To smooth market volatility, gains and losses related to changes in total OPEB liability and fiduciary net position are recognized over nine and half years.
Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
128
Note 18 – Other Postemployment Benefits (Continued)
B. Net OPEB Liability, OPEB Expense, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Actuarial Methods and Assumptions Used to Determine the OPEB Liability: The City’s net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 based on the following significant actuarial methods and assumptions:
Actuarial valuation date June 30, 2023
Contribution policy City contributes $250,000 annually and pays benefit outside of trust Discount rate 5.21%
Municipal bond rate 3.65% (Bond Buyer 20-bond Index)s
Expected long-term rate of return on investment 6.25%
General inflation 2.50%
Mortality, retirement, disability, termination CalPERS 2000-2019 experience study Mortality improvement Mortality projected fully generational with Scale MP-2021 Salary increases Aggregate - 2.75% annually; merit - CalPERS 2000-2019 Experience Study M edical trend
PEM HCA minimum increases 3.50% annually
Cap increases None
Healthcare participation
Non-Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Medicare - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 100% for Safety $100 benefit
50% for PEMHCA benefit if covered as active
5% for PEMHCA benefit if waived as active
Note 19 – Net Position and Fund Balances
A. Government-Wide Financial Statements
Net Investment in Capital Assets
The following is the calculation of net investment in capital assets at June 30, 2024:
Governmental Business-type
Activities Activities Total
Capital assets, net of accumulated depreciation
and amortization 335,763,944$ 65,238,853$ 401,002,797$ Less: outstanding principal on capital related debt, net (113,023,587) (21,051,000) (134,074,587) Add: loss on refunding of debt 459,631 85,877 545,508 Net investment in capital assets 223,199,988$ 44,273,730$ 267,473,718$
B. Fund Financial Statements
Fund Balance Classification
It is the policy of the City to maintain a minimum reserve for a reasonable level of assurance that the City’s day-to- day operations will be able to continue even if circumstances occur where revenues are insufficient to cover expenditures. The minimum reserve of the General Fund is 5% of the next year’s General Fund annual budgeted operating expenditures, as calculated by the Finance Director. The minimum fund balance is shown as unassigned in the General Fund.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
129
Note 19 – Net Position and Fund Balances (Continued)
B. Fund Financial Statements (Continued)
At June 30, 2024, fund balances are classified in the governmental funds as follows:
American Housing and 2019 Special
Rescue Plan Act Urban Development Tax Bond
(ARPA) Grant Capital M onte Bella Nonmajor Total
General Special Revenue Special Revenue Projects Debt Service Governmental Governmental Fund Fund Fund Fund Fund Funds Funds
Nonspendable
Loans and notes receivable -$ -$ 43,175$ -$ -$ 16,571$ 59,746$ Advances (long-term portion) 2,785,000 - - - - - 2,785,000 Land held for resale - - - - - 1,380,000 1,380,000 Total nonspendable 2,785,000 - 43,175 - - 1,396,571 4,224,746 Restricted
Public safety - - - - - 3,323,755 3,323,755 Future development - - - - - 21,108,375 21,108,375 M aintenance districts - - - - - 10,207,026 10,207,026 Street rep airs - - - - - 32,549,140 32,549,140 Grants/sp ecial projects - - - - - 1,317,446 1,317,446 Low/moderate income housing - - - - - 5,225,963 5,225,963 115 trust reserve 10,000,000 - - - - - 10,000,000 Capital projects - - - - - 11,668,864 11,6 68,864 Debt service - - - - 933,253 2,081,418 3,014,671 Total restricted 10,000,000 - - - 933,253 87,481,987 98,415,240 Committed
Capital projects 4,549,826 - - 8,490,095 - 141,985 13,181,906 Economic contingency reserve 20,100,000 - - - - - 20,100,000 Infrastructure maintenance reserve 4,360,000 - - - - - 4,360,000 OPEB reserve 1,000,000 - - - - - 1,000,000 Facilities maintenance reserve 1,800,000 - - - - - 1,800,000 Community Center reserve 8,100,000 - - - - - 8,100,000 Total committed 39,909,826 - - 8,490,095 - 141,985 48,541,906 Assigned
Carryover appropriations 31,490,364 - - - - - 31,490,364 Total assigned 31,490,364 - - - - - 31,490,364 Unassigned (deficit) 10,176,499 - (99,950) - - (10,297,492) (220,943) Total fund balances 94,361,689$ -$ (56,775)$ 8,490,095$ 933,253$ 78,723,051$ 182,451,313$
C. Encumbrances
The City uses encumbrances to control expenditure commitments for the year and to enhance cash management.
Encumbrances represent commitments related to contract s not yet performed and purchase orders not yet filled (executor contracts; and open purchase orders). Commitments for such expenditures of monies are encumbered to reserve a portion of applicable appropriations. Encumb rances still open at year end are not accounted for as expenditures and liabilities but, rather, as restricted, committed, or assigned governmental fund balance.
As of June 30, 2024, total governmental fund encumbrance balances for the City are as follows:
General Fund 4,549,826$
Nonmajor governmental funds 13,445,940
Total encumbrances 17,995,766$
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
130
Note 20 – Other Required Disclosures
A. Expenditures Exceeding Appropriations
For the year ended June 30, 2024, the following fund s had excess expenditures over appropriations, which are expected to be covered with existing fund balance or had sufficient available revenue:
Excess Expenditures
Fund Function over Appropriations
General Fund Capital outlay (353,640)$
General Fund Interest and fiscal charges (2,384)
Measure E Public works (93)
Measure G Public safety (422,943)
HUD Grants Public safety (2,289)
B. Net Position Deficit and Restrictions
The government-wide statement of net position reports an unrestricted deficit of $(125,547,113) and $89,559,884 of restricted net position.
Note 21 – Joint Venture – Salinas Valley Solid Waste Authority
The Salinas Valley Solid Waste Authority (“Authority”) is a jo int exercise of powers authority, created pursuant to an agreement dated as of January 1, 1997 (the “Authority Ag reement) among the County of Monterey, and the cities of Salinas, Gonzales, Greenfield, Soledad, and King City (the “Members”). The Authority was established to acquire and manage the landfill assets of each member, ensure long-term landfill capacity of the Authority service area and provide a unified and coordinated solid waste management for the members.
The Authority is governed by a nine-member governing board, consisting of three members of the Salinas City Council, two members of the Monterey County Board of Supervisors, and one member from each patriating city. Pursuant to the Authority Agreement, while the City does not have unilateral control over the activities of the Authority, the affirmative vote of at least one member of the Authority Board who is a member of the Salinas City Council is required to approve Board actions.
With the formation of the Authority, each participating juri sdiction contractually agreed to its responsibilities. In addition, the Authority adopted waste delivery agreements with each Member of the Authority. Each member has committed to deliver waste generated w ithin its boundaries to the Authority’s solid waste facilities, to direct its franchise/permitted solid waste haulers to dispose of waste at these facilities, and to pay tipping fees set by the Authority to cover all Authority-related costs.
The agreement may be terminated under specific terms of withdrawal, which includes a majority vote of the City Council, repayment of all outstanding debt and funding of closure, post closure and site remediation costs upon withdrawal from or termination of the Authority. The member s have made no equity contributions or have sold their interest in their assets to the Authority, and there is no explicit, measurable equity interest in this joint venture.
The City had no measurable equity interest in the Aut hority and does not receive a share of operating results. The Authority is currently funding the closur e, post closure and site remediation co sts based on estimates of these future costs. The Annual Financial Report of the Salinas Valley Solid Waste Authority is published and available from the Authority Treasurer at the Authority’s Finance Department located at 128 Sun Street, Suite 101, Salinas, CA 93901.
City of Salinas
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
131
Note 21 – Joint Venture – Salinas Valley Solid Waste Authority (Continued)
On December 6, 2018, the City issued a notice of inte ntion to withdraw from the Jo int Powers Agreement (the “Agreement”) Pursuant to Section 19 of the Joint Powers Agreement, the notice serves as a one-year notice. The City’s notice of intent to withdraw as a member of the Authority merely served as notice to the Authority and its remaining members. The one-year term has passed without any further action from the City or the Authority. However, the City and Authority representatives are working on finding a resolution to the notice.
The City understands and acknowledges its obligation to c ontinue paying its share of the 2014 Bonds as regularly scheduled and agrees to continue paying its share of the obligation after withdrawal from the Authority, should withdrawal occur. In addition, the City understands and acknowledges its obligation to pay its share of financial liability for closure and post-closure and site remediation costs as fu rther described in Section 19(a) of the Agreement. If the City withdraws from the Authority arrangements must be made to meet this obligation.
Note 22 – Commitments and Contingencies
Claims and Litigation
The City is directly and indirectly involved in various su its relating principally to claims arising from construction contracts, personal injury, and property damage. In the opinion of the City Attorney and City’s ma nagement, potential claims against the City resulting from such litigation, not c overed by insurance, would not materially affect the basic financial statements of the City. As a result, no liability has been accrued by the City relating to these matters as of June 30, 2024.
Note 23 – Prior Period Adjustments
The July 1, 2023 fund balance/net position of the Capital Projects Fund and the Fleet Maintenance Internal Service Fund have been restated as follows because City manageme nt decided to move a general ledger vehicle replacement reserve fund from the Fleet Maintenance Internal Service Fund to the Capital Projects Fund:
Fleet
Capital Maintenance
Projects Internal Service
Fund Fund
Fund balance/net position, as previously reported, at July 1, 2023 2,000,000$ 8,892,367$ Move replacement reserve back to Capital Projects Fund 9,000,000 (9,000,000) Fund balance/net position at July 1, 2023, as restated 11,000,000$ (107,633)$
132
This page left intentionally blank.
133
REQUIRED SUPPLEMENTARY INFORMATION
134
This page left intentionally blank.
City of Salinas
Budgetary Information
For the Year Ended June 30, 2024
135
Budgetary Information
The budget is prepared by the City Manager and adopted by the City Council. The City Council approves operating appropriations at the department and fund level prior to July 1, each year and may amend the budget during the fiscal year. Budgetary control is maintained at the program level. Formal budgetary integration was employed as a management control device during the fiscal year for the Ge neral Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Enterprise Funds and Internal Service Funds.
Budgets are legally adopted for all Governmental and Proprietary Fund Types. Fiduciary Funds and Agency Funds have no adopted budgets because the City is only required to make payments to the extent funds are available. Agency Fund budgets that are approved by their respective governing boards are recorded in the City’s accounting system.
The City Manager may transfer budget appropriations between departments and Department Directors may transfer appropriations between programs and accounts within their individual departments and divisions, but only the Council may appropriate funds from reserves or fund balances.
Budget policy excludes the use of taxes, accounts receivable, interest receivable assets and long-term advances that are not currently available resources for budget purposes. Condemnation deposits, are also excluded because they are returned upon right of way acquisition.
Expenditures may not legally exceed budgeted appropriations at the department level. Budgeted amounts shown are as originally adopted and as amended by the City Council dur ing the year. During the year, Council amends the budget with the approval of supplemental appropriations and reviews and amends the budget at mid-year and at year-end.
Appropriations lapse at fiscal year end to the extent th ey have not been expended. New budget appropriations are approved for the coming year. Project-length financial plans are adopted for all capital projects funds and appropriations are carried forward until project completion. Grant funds are carried forward until the grant expires.
Encumbrances represent commitments related to unperfo rmed contracts for goods or services. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of th e applicable appropriation, is employed as an extens ion of formal budgetary integration in the governmental funds. Encumbrances outsta nding at year-end are recorded as reservations of fund balance and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year.
On November 8, 2005, the voters of Salinas approved Measure V, a 0.50% transactions and use tax. Measure V is a general tax and is reported as part of the General Fund. The tax was effective April 1, 2005 and had an original sunset of ten (10) years. Measure V was revised by the voters on November 6, 2012 eliminati ng a termination date on the imposition of the tax through Measure E. The Measure E Oversight Committee is a fundamental provision of the voter- approved tax. The Mayor and City Council each annually appoints one member of the public to serve on the Oversight Committee. The committee is responsible for and overseeing the use of Measure E funds to assure consistency with the voter approved tax and the appropriated use of Measure E funds.
On November 4, 2014, the voters of Salinas approved Measure G (For a Safer Better Salinas), a 1.00% transactions and use tax. Measure G is a general tax and is reported as part of the General Fund. The tax was effective April 1, 2015 and had a sunset date of fifteen (15) years. The Measure G Oversight Committee is a fundamental provision of the voter- approved tax. The Mayor and City Council each annually appoints one member of the public to serve on the Oversight Committee. The committees’ main responsibilities include the review of the auditor’s report of the specific uses of Measure G funds and to issue a public report to the City Co uncil regarding the use of re venue and such other matters as the City Council may assign.
City of Salinas
Budgetary Information (Continued)
For the Year Ended June 30, 2024
136
The adopted FY 2024 budget represents the financial and organizational plan by which the policies and programs approved by the City Council will be implemented. It includes: (1) the programs, projects, services and activities to be provided during the fiscal year; (2) estimated revenues availa ble to finance the operating plan; and (3) the estimated spending requirements of the operating plan. The City’s goals and objectives identified by the City Council in the Strategic Plan thru 2025 was approved on March 8, 2022, following a strategic planning session on December 4, 2021 and are as follows:
• Economic Development
• Affordable Housing
• Infrastructure and Environmental Sustainability
• Excellent Infrastructure
• Public Safety
• Youth and Seniors
• Effective and Culturally Responsive Government
On May 25, 2021, the City Council was introduced and reviewed the proposed operating budget for the City of Salinas and Successor Agency. The Salinas City Council adopted FY 2024 Annual Operating Budgets on June 13, 2023. Capital project budget is updated annually.
Annual budgets are prepared for General Governmental Funds , Internal Service, Enterprise Operations, Assessment and maintenance Districts, Block Grant and Home programs, certain Grant and City Agencies, Deferred Compensation and Retirement, Debt Service, Successor Agency and Capital Project Funds.
The annual appropriation resolution adopts the budget at an appropriation level by fund, w ith detail expenditure by departments and programs included in the budget document.
GENERAL FUND
The General Fund’s fund balance increased $3,756,478 to $39,911,844, of which $2,785,000 is nonspendable, $6,000,000 is restricted, $21,007,693 is committed, $13,254,519 is assigned and $(3,135,368) is unassigned.
General Fund reserves have been set-aside by Council for specific purposes. Under the Reserved fund balance category, the General Fund nonspendable fund balance of $2,785,000 includes advances ($2,785,000). Committed funds balance of $21,007,693 are committed for capital projects, reserves, and future encumbrances. Carryover appropriations of $13,254,519 are under the assigned fund balance category.
MEASURE E
Measure E is a general tax (discretionary) and is reported as part of the General Fund. The Measure E fund balance increased $3,203,563 to $22,282,861, of wh ich $1,320,000 is restricted, $9, 061,946 is committed for future encumbrances, $918,428 is assigned, and $10,982,487 is unassigned.
MEASURE G
Measure G is a general tax (discretionary) and is reporte d as part of the General Fund. The Measure G fund balance increased $2,042,886 to $32,166,984, of wh ich $2,680,000 is restricted, $9, 840,187 is committed for future encumbrances, $17,317,417 is assigned and $2,329,380 is unassigned.
City of Salinas
Budgetary Information (Continued)
For the Year Ended June 30, 2024
137
BUDGETARY RESULTS RECONCILED TO GAAP
The budgetary process is based upon accounting for certain transactions on a basis other than the accounting principles generally accepted in the United States (GAAP) basis. The results of operations are presented in the accompanying budget and actual comparison schedules in accordance with the budgetary process (budgetary basis) to provide a meaningful comparison with the budget. The major differences between the budgetary basis actual and GAAP basis are as follows:
• Year-end encumbrances are recognized as the equivalent of expenditures in the budgetary basis financial statements, while encumbered amounts are not rec ognized as expenditures on the GAAP basis until the equipment, supplies, or services are received.
• Certain loan transactions are recognized as expenditures for the budgetary basis but not for the GAAP basis.
When these loans are made, they are recorded as receivables for the GAAP basis and as expenditures for the budgetary basis. When loan repayments are received, they are recorded as reductions to receivables for the GAAP basis, but are recognized as revenues for the budgetary basis.
• Certain accounts such as the change in fair market value of investments included in the City’s GAAP basis amounts, for which no formal budgets are prepared, are excluded from the budgetary basis financial statements.
• Certain grant revenues received in advance are recognized on the budgetary basis financial statements, but are deferred and not recognized as revenue on the GAAP basis financial statements. This process normally creates a variance in recognized revenue from the prior year to the current year.
City of Salinas
Budgetary Comparison Schedules – General Fund
For the Year Ended June 30, 2024
138
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES :
Taxes 151,290,500$ 152,389,706$ 153,358,523$ 968,817$ Licenses and permits 11,161,000 11,161,000 11,128,716 (32,284) Intergovernmental 1,136,000 1,136,000 1,334,064 198,064 Charges for services 5,249,050 5,249,050 4,907,765 (341,285) Investment income (loss) 3,094,500 3,094,500 6,118,498 3,023,998 Rental income 325,000 325,000 504,533 179,533 Fines and forfeitures 240,200 240,200 298,460 58,260 Miscellaneous 882,200 882,200 1,134,412 252,212 Total revenues 173,378,450 174,477,656 178,784,971 4,307,315 EXPENDITURES:
Current:
General government 31,659,630 33,510,264 25,194,416 8,315,848 Public safety 89,613,056 91,665,030 89,058,716 2,606,314 Public works 18,026,250 18,547,209 14,580,082 3,967,127 Recreation 8,472,138 8,995,276 8,025,592 969,684 Library 5,970,527 5,978,293 5,347,594 630,699 Capital outlay 123,300 725,100 761,438 (353,640) Debt Service:
Principal 873,530 873,530 1,078,740 873,530 Interest and fiscal charges 195,380 195,380 197,764 (2,384) Total expenditures 154,933,811 160,490,082 144,244,342 17,007,178 REVE
NUES OVER (UNDER) EXPENDITURES 18,444,639 13,987,574 34,540,629 (12,699,863) OTH E R F I NA NCI NG SOU R CE S (U SE S):
Transfers in 6,158,630 6,303,965 2,835,335 (3,468,630) Transfers out (39,779,375) (69,529,616) (28,373,037) 41,156,579 Total other financing sources (uses) (33,620,745) (63,225,651) (25,537,702) 37,687,949 Net change in fund balance (15,176,106)$ (49,238,077)$ 9,002,927 58,241,004$ FUND BALANCE:
Beginning of y ear 85,358,762
End of year 94,361,689$
Budgeted Amounts
City of Salinas
Budgetary Comparison Schedules – ARPA Fund
Special Revenue Fund
For the Year Ended June 30, 2024
139
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES :
Intergovernmental - $ -$ 16,616,053$ 16,616,053$ Total revenues - - 16,616,053 16,616,053 EXPENDITURES:
Current:
General government - 7,655,085 5,045,610 2,609,475 Public safety - 390,310 178,712 211,598 Public works - 10,484,335 2,924,499 7,559,836 Recreation - 992,427 172,359 820,068 Capital outlay - 22,660,711 8,294,873 22,660,711 Total expenditures - 42,182,868 16,616,053 33,861,688 Net change in fund balance -$ (42,182,868)$ - 42,182,868$ FUND BALANCE:
Beginning of y ear -
End of year -$
Budgeted Amounts
City of Salinas
Budgetary Comparison Schedules – HUD Fund
Special Revenue Fund
For the Year Ended June 30, 2024
140
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES :
Intergovernmental 17,971,009 $ 23,612,250$ 10,401,835$ (13,210,415)$ Interest - - 72,109 72,109 Miscellaneous 100,000 100,000 290,938 190,938 Total revenues 18,071,009 23,712,250 10,764,882 (12,947,368) EXPENDITURES:
Current:
General government 8,266,189 22,364,703 8,980,249 13,384,454 Public safety - 20,749 23,038 (2,289) Public works - 90,641 81,713 8,928 Capital outlay 5,902,500 4,566,063 1,005,291 4,566,063 Total expenditures 14,168,689 27,042,156 10,140,291 17,907,156 REVENUES OVER (UNDER) EXPENDITURES 3,902,320 (3,329,906) 624,591 (3,954,497) OTH E R F I NA NCI NG SOU R CE S (U SE S):
Transfers out - (2,594,225) (1,076,979) 1,517,246 Total other financing sources (uses) - (2,594,225) (1,076,979) 1,517,246 Net change in fund balance 3,902,320$ (5,924,131)$ (452,388) 5,471,743$ FUND BALANCE (DEFICIT):
Beginning of year 395,613
End of year (56,775)$
Budgeted Amounts
City of Salinas
Required Supplemental Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan
141
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement Period, Year Ended June 30: 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 T otal Pension L iability
Service Cost 3,883,129$ 3,581,707$ 3,130,339$ 3,162,904$ 3,157,247$ 3,099,429$ 2,873,548$ 2,135,480$ 2,197,484$ 2,331,545$ Interest on total pension liability 10,520,930 9,882,781 9,498,842 8,959,786 8,430,817 7,806,166 7,282,974 6,801,939 6,445,778 6,154,034 Changes in benefit t erms 163,259 - - - - - - - - - Differences between expected and actual
experience 2,096,099 (1,973,792) 727,132 588,822 2,005,995 1,457,261 489,759 (996,921) (1,789,044) - Changes in assumptions - 5,420,045 - - - (752,607) 6,388,079 - (1,686,636) - Benefit payments, including refunds of
employee contributions (6,886,917) (6,365,156) (5,481,505) (5,107,076) (4,456,008) (3,952,236) (3,361,268) (3,116,204) (2,803,130) (2,673,091) Net change in total pension liability 9,776,500 10,545,585 7,874,808 7,604,436 9,138,051 7,658,013 13,673,092 4,824,294 2,364,452 5,812,488 T otal pension liability - beginning 151,719,779 141,174,194 133,299,386 125,694,950 116,556,899 108,898,886 95,225,794 90,401,500 88,037,048 82,224,560 T otal pension liability - ending (a) 161,496,279$ 151,719,779$ 1 41,174,194$ 133,299,386$ 125,694,950$ 116,556,899$ 108,898,886$ 95,225,794$ 90,401,500$ 88,037,048$ Plan fiduciary net position
Contributions - employer 4,713,873$ 4,193,288$ 4,273,977$ 7,793,322$ 3,511,716$ 3,133,948$ 3,232,477$ 2,635,818$ 2,037,528$ 2,010,590$ Contributions - employee 1,688,999 1,584,132 1,464,611 1,411,627 1,501,635 1,403,836 1,331,850 1,339,737 987,786 959,420 Net investment income 7,090,560 (9,339,092) 22,935,564 4,662,415 5,681,706 6,712,207 7,844,830 375,028 1,500,373 9,911,526 Benefit payments, including refunds of
employee contributions (6,886,917) (6,365,156) (5,481,505) (5,107,076) (4,456,008) (3,952,236) (3,361,268) (3,116,204) (2,803,130) (2,673,091) Net plan to plan resource movement - - - 383,290 - (199) - 365 - - Administrative expense (83,739) (77,170) (100,678) (129,381) (61,083) (122,563) (102,919) (41,756) (77,059) - Other miscellaneous income/expense - - - - 199 (232,749) - - - - Net change in plan fiduciary net
position 6,522,776 (10,003,998) 23,091,969 9,014,197 6,178,165 6,942,244 8,944,970 1,192,988 1,645,498 10,208,445 Plan fiduciary net position - beginning 113,875,517 123,879,515 100,787,546 91,773,349 85,595,184 78,652,940 69,707,970 68,514,982 66,869,484 56,661,039 Plan fiduciary net position - ending (b) 120,398,293$ 113,875,517$ 123,879,515$ 100,787,546$ 91,773,349$ 85,595,184$ 78,652,940$ 69,707,970$ 68,514,982$ 66,869,484$ Net pension liability - ending (a) - (b) 41,097,986$ 37,844,262$ 17,294,679$ 32,511,840$ 33,921,601$ 30,961,715$ 30,245,946$ 25,517,824$ 21,886,518$ 21,167,564$ Plan fiduciary net position as a percentage
of the total pension liability 74.55% 75.06% 87.75% 75.61% 73.01% 73.44% 72.23% 73.20% 75.79% 75.96% Covered payroll 23,750,027$ 21,667,920$ 20,799,596$ 20,946,385$ 20,634,254$ 20,051,944$ 18,618,295$ 15,300,421$ 15,513,480$ 15,831,777$ Plan net pension liability as a percentage of
covered payroll 173.04% 174.66% 83.15% 155.21% 164.39% 154.41% 162.45% 166.78% 141.08% 133.70% City Miscellaneous Plans
City of Salinas
Required Supplemental Information (Unaudited)
Schedule of Pension Plan Contributions
Miscellaneous Plan
142
Fiscal Year Ended June 30: 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined
contribution 4,446,483$ 4,713,873$ 4,193,288$ 4,273,977$ 3,857,093$ 3,511,716$ 3,133,731$ 3,231,650$ 2,635,818$ 2,037,528$ Contributions in relation to
the actuarially determined
contribution (4,446,483) (4,713,873) (4,193,288) (4,273,977) (7,793,322) (3,511,716) (3,133,731) (3,231,650) (2,635,818) (2,037,528) Contribution deficiency
(excess) -$ -$ -$ -$ (3,936,229)$ -$ -$ -$ -$ -$ Covered payroll 24,415,028$ 23,750,027$ 21,667,920$ 20,799,596$ 20,946,385$ 20,634,254$ 20,051,944$ 18,618,295$ 15,300,421$ 15,513,480$ Contributions as a percentage
of covered payroll 18.21% 19.85% 19.35% 20.55% 37.21% 17.02% 15.63% 17.36% 17.23% 13.13% Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method/period For details, see June 30, 2021 Funding V aluation Report.
Asset valuation method
Inflation
Salary increases Varies based on entry age and service Payroll grow th
Investment rate of return
Retirement age
Mortality
Other Information:
City Mis cellaneous Plans
The probabilities of retirement are based on the 2021 CalPERS Experience S tudy.
The probabilities of mortality are based on the 2021 CalPERS Experience S tudy.
Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of S cale MP-20 16 published by t he S ociety of Actuaries.
For changes to previous years’ information, refer to past G AS B 68 reports.
2.50%
2.75%
7.00% net of pension plan investment and administrative expenses The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 w ere derived fro m the June 30, 2021 funding valuation report.
Entry Age Actuarial Cost Method
Fair V alue of Assets. For details, see June 30, 2021 Funding V aluation City of Salinas
Required Supplemental Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – City Police Plans
143
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement Period, Year Ended June 30: 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 T otal Pension L iability
Service Cost 6,485,353$ 6,757,790 $ 6,086,593$ 6,156,433$ 6,076,786$ 5,603,486$ 5,171,913$ 4,462,598$ 4,440,981$ 4,932,982$ Interest on total pension liability 24,606,993 23,595,755 22,716,035 22,017,085 21,051,415 19,772,458 18,658,643 17,933,618 17,475,350 17,097,550 Changes in benefit t erms 146,047 - - - - - - - - - Differences between expected and actual
experience 2,343,505 (1,552,114) (2,364,429) 1,696,481 6,664,829 6,096,574 (2,807) (4,299,665) (5,739,808) - Changes in assumptions - 13,527,486 - - - (1,307,343) 16,117,523 - (4,436,648) - Benefit payments, including refunds of
employee contributions (18,713,828) (17,388,668) (16,317,199) (15,680,099) (15,037,162) (13,742,608) (12,772,896) (11,890,953) (11,383,179) (10,895,705) Net change in total pension liability 14,868,070 24,940,249 10,121,000 14,189,900 18,755,868 16,422,567 27,172,376 6,205,598 356,696 11,134,827 T otal pension liability - beginning 360,247,773 335,307,524 325,186,524 310,996,624 292,240,756 275,818,189 248,645,813 242,440,215 242,083,519 230,948,692 T otal pension liability - ending (a) 375,115,843$ 360,247,773$ 3 35,307,524$ 325,186,524$ 310,996,624$ 292,240,756$ 275,818,189$ 248,645,813$ 242,440,215$ 242,083,519$ Plan fiduciary net position
Contributions - employer 13,151,466$ 12,406,841$ 11,629,887$ 10,297,024$ 9,485,870$ 8,260,458$ 7,798,560$ 6,462,584$ 5,540,793$ 5,285,903$ Contributions - employee 2,176,654 2,127,269 2,305,151 1,946,146 1,993,713 1,816,971 1,625,541 1,512,655 1,350,215 1,375,826 Net investment income 14,237,556 (19,126,756) 46,981,535 9,999,235 12,630,434 15,347,329 18,439,075 800,238 3,733,737 25,664,291 Benefit payments, including refunds of
employee contributions (18,713,828) (17,388,668) (16,317,199) (15,680,099) (15,037,162) (13,742,608) (12,772,896) (11,890,953) (11,383,179) (10,895,705) Net plan to plan resource movement - - - (383,290) - (447) - 19,216 - - Administrative expense (168,406) (156,453) (206,540) (283,165) (136,963) (282,146) (245,410) (103,251) (190,690) - Other miscellaneous income/expense1 - - - - 444 (535,801) - - - - Net change in plan fiduciary net
position 10,683,442 (22,137,767) 44,392,834 5,895,851 8,936,336 10,863,756 14,844,870 (3,199,511) (949,124) 21,430,315 Plan fiduciary net position - beginning2 229,014,170 251,151,937 206,759,103 200,863,252 191,926,916 181,063,160 166,218,290 169,417,801 170,366,925 148,936,610 Plan fiduciary net position - ending (b) 239,697,612$ 229,014,170$ 251,151,937$ 206,759,103$ 200,863,252$ 191,926,916$ 181,063,160$ 166,218,290$ 169,417,801$ 170,366,925$ Net pension liability - ending (a) - (b) 135,418,231$ 131,233,603$ 84,155,587$ 118,427,421$ 110,133,372$ 100,313,840$ 94,755,029$ 82,427,523$ 73,022,414$ 71,716,594$ Plan fiduciary net position as a percentage
of the total pension liability 63.90% 63.57% 74.90% 63.58% 64.59% 65.67% 65.65% 66.85% 69.88% 70.38% Covered payroll 3 19,748,334$ 20,251,095$ 19,916,863$ 19,776,528$ 19,051,278$ 17,967,376$ 16,214,420$ 15,715,033$ 15,494,316$ 16,589,818$ Plan net pension liability as a percentage of
covered payroll 685.72% 648.03% 422.53% 598.83% 578.09% 558.31% 584.39% 524.51% 471.29% 432.29% 2Includes any beginning of year adjust ment .
City Police Plans
1During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Fina ncial Reporting for Postemployment Benefit Plans Other than Pensions (G AS B 75), CalPERS reported its proportionate share of activity related to postemployment 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 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 (G AS B 68). 3 Includes one year’s payroll grow th using 2.80% payroll grow th assumption for fiscal year ended June 30, 2024; 2.75% payroll gr ow th assumption for fiscal years ended June 30, 2018-21; 3.00% payroll grow th assumption for fiscal years ended June 30, 2014-17.
City of Salinas
Required Supplemental Information (Unaudited)
Schedule of Pension Plan Contributions
City Police Plans
144
Fiscal Year Ended June 30: 2 0242 0232 0222 0212 0202 0192 0182 0172 0162 015 Actuarially determined
contribution 6,941,602$ 13,151,466$ 12,406,841$ 11,629,887$ 10,297,024$ 9,485,870$ 8,260,458$ 7,798,560$ 6,462,584$ 5,540,793$ Contributions in relation to
the actuarially determined
contribution (6,941,602) (13,151,466) (12,406,841) (11,629,887) (10,296,552) (9,485,870) (8,260,458) (7,798,560) (6,462,584) (5,540,793) Contribution deficiency
(excess) -$ -$ -$ -$ 472$ -$ -$ -$ -$ -$ Covered payroll 20,818,126$ 20,251,095$ 20,514,369$ 19,916,863$ 19,776,528$ 19,051,278$ 17,967,376$ 16,214,420$ 15,715,033$ 15,494,316$ Contributions as a percentage
of covered payroll 33.34% 64.94% 60.48% 58.39% 52.06% 49.79% 45.97% 48.10% 41.12% 35.76% Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method/period For details, see June 30, 2021 Funding V aluation Report.
Asset valuation method
Inflation
Salary increases Varies based on entry age and service Payroll grow th
Investment rate of return
Ret irement age
Mortality
For changes to previous years’ information, refer to past GASB 68 reports.
City Police Plans
7.00% net of pension plan investment and administrative expenses The probabilities of retirement are based on the 2021 CalPERS Experience Study.
The probabilities of mortality are based on the 2021 CalPERS Experience Study. ement and post-retirement mortality rates includ e 15 years of projected mortality improvement using 90% of S cale MP-2016 published by the S ociety of Actuaries.
Other Information:
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 were derived fro m the June 30, 2021 funding valuation report.
2.50%
2.75%
Entry Age Actuarial Cost Method
Fair Value of Assets. For details, see June 30, 2021 Funding Valuation
City of Salinas
Required Supplemental Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – City Fire Plans
145
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement Period, Year Ended June 30: 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Proportion of the net pension liability 0.52990% 0.53 060% 0.61287% 0.48376% 0.46772% 0.46967% 0.58010% 0.60039% 0.64362% 0.64195% Proportionate share of the net pension
liability 66,108,004$ 61,288,496$ 33,145,570$ 52,635,552$ 47,927,704$ 45,259,034$ 57,529,594$ 51,951,899$ 44,177,449$ 39,944,785$ Covered payroll* 12,823,623$ 11,615,639$ 11,387,448$ 11,013,870$ 10,748,465$ 9,763,022$ 9,636,368$ 9,436,688$ 9,158,594$ 9,531,935$ Proportionate share of the net pension
liability as percentage of covered payroll 515.52% 527.64% 291.07% 477.90% 445.90% 463.58% 597.00% 550.53% 482.36% 419.06% Plan's fiduciary net position as percentage
of the total pension liability 76.21% 76.68% 88.29% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82% * For the year ending on the measurement date.
City Fire Plans
City of Salinas
Required Supplemental Information (Unaudited)
Schedule of Pension Plan Contributions
City Fire Plans
146
Fiscal Year Ended June 30: 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined
contribution 7,254,285$ 6,940,599$ 6,791,444$ 5,708,093$ 5,058,738$ 4,369,284$ 5,440,481$ 5,132,440$ 4,732,759$ 3,811,507$ Contributions in relation to
the actuarially determined
contribution (7,254,285) (6,940,599) (6,791,444) (5,708,093) (5,058,738) (4,369,284) (16,741,091) (5,132,440) (4,732,759) (3,811,507) Contribution deficiency
(excess) -$ -$ -$ -$ -$ -$ (11,300,610)$ -$ -$ -$ Covered payroll 13,527,689$ 12,823,623$ 11,615,639$ 11,387,448$ 11,013,870$ 10,748,465$ 9,763,022$ 9,636,368$ 9,436,668$ 9,158,594$ Contributions as a percentage
of covered payroll 53.63% 54.12% 58.47% 50.13% 45.93% 40.65% 171.47% 53.26% 50.15% 41.62% Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal cost method
Amortization method/period V aries by date established and source. May be level dollar or level percent of pay and may include di rect rate smoothing Asset valuation method
Inflation
Salar y in cr eases Varies by category, entry age, and service Mortality
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2024 w ere derived fro m the June 30, 2021 funding valuation report.
City Fire Plans
Derived using CalPERS ’ Membership Data for all Funds. The post-retirement mortality rates include 15 years of projected on-goin g mortality improvement using 80% of the S ociety of Actuaries’ S cale MP-2020.
Market value of assets
2.30%
City of Salinas
Required Supplemental Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios Single Employer Plan
147
2024 2023 2022 2021 2020 2019 2018 2017 2016
Measurement Period, Year Ended June 30: 2023 2022 2021 2020 2019 2018 2017 2016 2015 1 T otal Pension Liability
Service Cost 91,735$ 131,853$ 345,756$ 325,385$ 232,193$ 302,184$ 279,000$ 336,000$ 436,000$ Interest on total pension liability 274,479 255,632 283,983 506,095 684,730 679,330 537,000 655,000 676,000 Changes in benefit terms - - - - - - - 531,000 - Differences between expected and actual
experience 398,477 - 1,595,858 - 889,365 - 2,172,000 - - Changes in assumptions (522,172) (533,090) (37,244) 907,299 217,496 - (106,000) - - Benefit payments, including refunds of
employee contributions (338,894) (3,218,471) (2,656,129) (9,123,048) (1,305,661) (199,769) (3,508,000) (87,000) (3,139,000) Net change in total pension liability (96,375) (3,364,076) (467,776) (7,384,269) 718,123 781,745 (626,000) 1,435,000 (2,027,000) T otal pension liability - beginning 10,058,747 13,422,823 13,893,599 21,277,868 20,559,745 19,778,000 20,404,000 18,969,000 20,996,000 T otal pension liability - ending (a) 9,962,372$ 10,058,747$ 13,425,823$ 13,893,599$ 21,277,868$ 20,559,745$ 19,778,000$ 20,404,000$ 18,969,000$ Pl
an fiduciary net position
Contributions - employer 2,180,872$ 190,126$ 5,695,926$ 8,030,028$ 2,919,589$ 1,927,686$ 1,654,000$ 1,483,000$ 1,340,000$ Contributions - employee 18,087 19,012 34,635 52,751 71,806 70,043 69,000 82,000 77,000 Net investment income 46,143 (486,138) 894,536 338,833 503,893 60,254 (506,000) 84,000 (85,000) Benefit payments, including refunds of
employee contributions (338,894) (3,218,471) (2,656,129) (9,123,048) (1,305,661) (199,769) (3,508,000) (87,000) (3,139,000) Administrative expense (16,305) (17,057) (18,061) (18,582) (19,188) (54,195) (75,000) (83,000) (100,000) Net change in plan fiduciary net
position 1,889,903 (3,512,528) 3,950,907 (720,018) 2,170,439 1,804,019 (2,366,000) 1,479,000 (1,907,000) Plan fiduciary net position - beginning 6,349,819 9,862,347 5,914,440 6,634,458 4,464,019 2,660,000 5,026,000 3,547,000 5,454,000 Plan fiduciary net position - ending (b) 8,239,722$ 6,349,819$ 9,865,347$ 5,914,440$ 6,634,458$ 4,464,019$ 2,660,000$ 5,026,000$ 3,547,000$ Net pension liability - ending (a) - (b) 1,722,650$ 3,708,928$ 3,560,476$ 7,979,159$ 14,643,410$ 16,095,726$ 17,118,000$ 15,378,000$ 15,422,000$ P
lan fiduciary net position as a percentage
of the total pension liability 82.71% 63.13% 73.48% 42.57% 31.18% 21.71% 13.45% 24.63% 18.70% Covered payroll 402,079$ 437,872$ 768,725$ 1,176,879$ 1,628,432$ 1,610,679$ 1,649,359$ 1,461,000$ 1,738,432$ Plan net pension liability as a percentage of
covered payroll 428.44% 847.03% 463.17% 677.99% 899.23% 999.31% 1037.86% 1052.57% 887.12% 1Information only presented from the implementation year Single-Employer Plan