Agenda packet — San Bruno City Council, January 11, 2022 (part 1 of 2)

"The City with a Heart"
Rico Medina, Mayor
Marty Medina, Vice Mayor
Tom Hamilton, Councilmember
Linda Mason, Councilmember
Michael Salazar, Councilmember
AB361
CORONAVIRUS COVID19
On September 16, 2021, the Governor of California signed AB361 suspending certain provisions of the Ralph M.

Brown Act in order to allow for local legislative bodies to conduct their meetings telephonically or by other electronic means. Purusant to the CDC’s social distancing guidelines which discourage large public gatherings, the San Bruno City Council meetings are being conducted electronically. The meeting is not available for in person attendance. Members of the public may attend the meeting by video or phone linked in this agenda or watch by livestream at www.youtube.com/user/cityofsanbruno . CityNet Services Channel 1 will air the meeting live and the recorded meeting will be made available for viewing on the City’s YouTube channel after the meeting has concluded.

If you would like to make a Public Comment on an item not on the agenda, or comment on a particular agenda item, please email [email protected] . Emails received before the special or regular meeting start time will be forwarded to the City Council, posted on the City’s website and will become part of the public record for that meeting. If emailed comments are received after the meeting start time, or after the meeting ends, they will be forwarded to the City Council and filed with the agenda packet becoming part of the public record for that meeting. Emails received will not be read aloud during the meeting.

Individuals who require special assistance of a disabilityrelated modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the agenda, agenda packet or other writings that may be distributed at the meeting, should contact Melissa Thurman, City Clerk 48 hours prior to the meeting at (650) 6197070 or by email at [email protected] . Notification in advance of the meeting will enable the City of San Bruno to make reasonable arrangements to ensure accessibility to this meeting, the materials related to it, and your ability to comment.

AGENDA
SAN BRUNO CITY COUNCIL
January 11, 2022
7:00 PM
Zoom Meeting Details
https://sanbrunocagov.zoom.us/j/81871530679?pwd=bUxwU0N4aitKTURVSnd4ZVlzY25SQT09 Webinar or Meeting ID: 818 7153 0679 (audio only)
Participant ID: #
Webinar or Meeting Password: 145317
Zoom Phone Line: 16699009128 (same webinar ID and password as above) City Council meetings are conducted in accordance with Roberts Rules of Order. All regular Council meetings are recorded and televised on CityNet Services Channel 1 and replayed the following Thursday, at 2:00 pm.

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

4. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Individuals allowed three minutes. It is the Council’s policy to refer matters raised in this forum to staff for investigation and/or action where appropriate. The Brown Act prohibits the Council from discussing or acting upon any matter not agendized pursuant to State Law.

5. ANNOUNCEMENTS/PRESENTATIONS
Note: Public comment will be requested after each topic in this section a. Receive Presentation and Annual Report from the Planning Commission. b. Receive Presentation on the New City Website

6. CONSENT CALENDAR
All items are considered routine or implement an earlier Council action and may be enacted by one motion; there will be no separate discussion, unless requested by a Councilmember.

Note: There will be a single public comment period for all items in this section unless a Councilmember requests to pull an item for a separate vote. a. Approve Accounts Payable for December 13, December 20, December 27, 2021.
b. Accept Payroll for December 5, 2021 and December 19, 2021. c. Approve Investment Report and Reconciliation of General Ledger to Bank Report dated November 30, 2021
d. Receive Written Update on the City’s Response Efforts to COVID19 e. Adopt Resolution Authorizing the City Manager to Execute a Contract Amendment with Zero Turn Power Washing to Provide Monthly Downtown Sidewalk Pressure Washing Services in an Amount Not to Exceed $28,100 for the Remainder of FY 202122 and Increase the FY 202122 Stormwater Fund Budget by $28,100
f. Adopt a Resolution authorizing the City Manager to increase the contract amount by $25,000 to a new, revised total of $212,000 for Bear Cloud Technologies’ migration of the City of San Bruno’s telephony services from on premise Cisco Call Manager to Cisco Hybrid Cloud Calling and purchase compatible telephone handsets.
g. Adopt Resolution Appropriating $72,572 from the General Fund to the Community Services Library Division Budget to Restore Public Hours of Operation to Prepandemic Levels

7. CONDUCT OF BUSINESS
Note: Public comment will be requested after each topic in this section a. Approve Letter to Cure Alleged Brown Act Violations Alleged by the San Mateo Union High School District Regarding December 14, 2021 Meeting Agenda Item Related to General Plan Policy OSR8, Regarding Former Crestmoor High School Site at 300 Piedmont Avenue, San Bruno CA
b. Adopt Resolution Confirming that General Plan Open Space and Recreation Policy OSR8 Requires Dedication of Approximately 12 Acres of Playing Fields at the Former Crestmoor High School Site at 300 Piedmont Avenue, San Bruno CA
c. Accept the City’s Annual Comprehensive Financial Report, the Measure A and W Fund Reports, and the Memorandum on Internal Controls and Required Communications for the Fiscal Year Ended June 30, 2021
d. Adopt Resolution Appropriating $72,333 from the General Fund to the Community Services Department Recreation Division to fund a Deputy Director and Unfreeze a Recreation Services Coordinator
e. Receive Report and Confirm Appointment of City Councilmembers: • To City Council Subcommittees; • As Liaisons to the City’s Citizen Advisory Commissions, Boards and Committees; and • As Representatives and Alternates to San Mateo County and other Regional Agencies

8. COMMENTS FROM COUNCIL MEMBERS
Note: Public comment will be requested after each topic in this section

9. ADJOURNMENT – The next Regular City Council Meeting will be held on January 25, 2022 at 7:00 PM.
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"The City with a Heart"
Rico Medina, Mayor
Marty Medina, Vice Mayor
Tom Hamilton, Councilmember
Linda Mason, Councilmember
Michael Salazar, Councilmember
AB361
CORONAVIRUS COVID19
On September 16, 2021, the Governor of California signed AB361 suspending certain provisions of the Ralph M.

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COMMENTS FROM COUNCIL MEMBERS
Note: Public comment will be requested after each topic in this section

9. ADJOURNMENT – The next Regular City Council Meeting will be held on January 25, 2022 at 7:00 PM.
2 of 299
"The City with a Heart"
Rico Medina, Mayor
Marty Medina, Vice Mayor
Tom Hamilton, Councilmember
Linda Mason, Councilmember
Michael Salazar, Councilmember
AB361
CORONAVIRUS COVID19
On September 16, 2021, the Governor of California signed AB361 suspending certain provisions of the Ralph M.

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COMMENTS FROM COUNCIL MEMBERS
Note: Public comment will be requested after each topic in this section

9. ADJOURNMENT – The next Regular City Council Meeting will be held on January 25, 2022 at 7:00 PM.
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO

DATE: December 28, 2021

TO: Honorable Mayor and Members of the City Council

FROM: Jovan D. Grogan, City Manager

PREPARED BY: Benjie Lin, Management Analyst

SUBJECT: Payroll Acceptance

City Council acceptance of the City payroll distributed December 10, 2021 is recommended. The Labor Summary report reflecting the total payroll amount of $1,866,009.28 for bi-weekly pay period ending December 5, 2021 by fund is shown below:

Fund Amount

Fund: 001 - GENERAL FUND $1,372,962.43
Fund: 006 - AMERICAN RESCUE PLAN ACT 53,435.06
Fund: 122 - SOLID WAIST/RECYCL. 2,279.32
Fund: 132 - AGENCY ON AGING 243.78
Fund: 137 - DEVELOPER PROJECT CONTRIBUTIONS 6,849.96
Fund: 201 - PARKS AND FACILITIES CAPITAL 1,922.58
Fund: 203 - STREET IMPROVE. PROJECTS 4,500.32
Fund: 611 - WATER FUND 107,508.14
Fund: 621 - STORMWATER FUND 24,043.31
Fund: 631 - WASTEWATER FUND 85,740.26
Fund: 641 - CITYNET SERVICES FUND 122,115.18
Fund: 701 - CENTRAL GARAGE 16,401.55
Fund: 702 - FACILITY MAINT.FUND 36,672.82
Fund: 707 - TECHNOLOGY DEVELOPMENT 23,005.36
Fund: 711 - SELF INSURANCE 8,329.21

Total: $1,866,009.28

___________________________
Qianyu Sun, Finance Director Date
12/20/2021
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO

DATE: January 11, 2021

TO: Honorable Mayor and Members of the City Council

FROM: Jovan D. Grogan, City Manager

PREPARED BY: Benjie Lin, Management Analyst

SUBJECT: Payroll Acceptance

City Council acceptance of the City payroll distributed December 24, 2021 is recommended. The Labor Summary report reflecting the total payroll amount of $1,634,160.90 for bi-weekly pay period ending December 19, 2021 by fund is shown below:

Fund Amount

Fund: 001 - GENERAL FUND $1,185,618.63
Fund: 006 - AMERICAN RESCUE PLAN ACT 53,704.71
Fund: 122 - SOLID WAIST/RECYCL. 2,111.06
Fund: 132 - AGENCY ON AGING 1,103.23
Fund: 137 - DEVELOPER PROJECT CONTRIBUTIONS 7,993.43
Fund: 201 - PARKS AND FACILITIES CAPITAL 3,434.94
Fund: 203 - STREET IMPROVE. PROJECTS 5,639.73
Fund: 611 - WATER FUND 97,482.56
Fund: 621 - STORMWATER FUND 26,555.43
Fund: 631 - WASTEWATER FUND 81,818.58
Fund: 641 - CITYNET SERVICES FUND 102,970.87
Fund: 701 - CENTRAL GARAGE 14,637.09
Fund: 702 - FACILITY MAINT.FUND 29,446.31
Fund: 707 - TECHNOLOGY DEVELOPMENT 14,644.91
Fund: 711 - SELF INSURANCE 6,999.42

Total: $1,634,160.90

___________________________
Qianyu Sun, Finance Director Date
1/3/2022
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO

DATE: January 11, 2022

TO: Honorable Mayor and Members of the City Council

FROM: Qianyu Sun, Finance Director

PREPARED BY: Esther Garibay-Fernandes, Financial Services Manag er

SUBJECT: Monthly Investment Report – November 2021

The table below summarizes the investment portfolio’s total book value by Investment type.

Investment Type Total Book Value
TriCounties Ban k $16 ,470 ,267
Local Agency Investment Fund 39 ,645 ,261
San Mateo County Pool 26,215 ,192
Government Agency Investments 52 ,474 ,937
Muni cip al Bonds 14,835 ,465
Certificat e of Depo sit 50 0,000
Money Market Investments (2,644 )
Total Investments $150 ,138 ,478

Respectfully submitted,

__________
Finance Director Date
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City of San Bruno
567 El Camino Real
San Bruno, CA 94066
Investments
Coupon
Rate CUSIP Book Value Market Value YTM Maturity Date
% of
Portfolio
Short Term Investments
TriCounties Bank Cash Balance 16,470,267 16,470,267 0.00% N/A 11% Pooled Investments
Local Agency Investment Fund 36,355,745 36,355,745 0.20% NA 24% Glenview Fire Local Agency Investment Fund 3,289,516 3,289,516 0.20% NA 2% Total LAIF 39,645,261 39,645,261
San Mateo County Pool 26,215,192 26,215,192 0.87% 17% Money Market Investments
U.S. Government Money Market 31846V567 (2,644) (2,644) 0.02% NA 0% Total Money Market Investments (2,644) (2,644) Certificate of Deposit
Morgan Stanley Bank Brokered CD 1.95% 61690UPF1 250,00 0 257,760 1.84% November 29, 2024 0.17% Morgan Stanley Private Bank Brokered CD 1.90% 61760A3 L1 250,000 257,390 1.80% November 29, 2024 0.17% Total Certificate of Deposit 500,000 515,150 Total Short Term Investments 82,828,076 82,843,226 Municipal Bonds
Riverside Community College Non-Callable GO 3.61% 76886PFF5 1,080,380 1,071,540 0.70% August 1, 2024 1% California St Federally Taxable Var 3.38% 13063DGB8 1,105,910 1,077,010 0.69% April 1, 2025 1% California St Federally Taxable Var 3.38% 13063DGB8 1,466,885 1,437,808 0.65% April 1, 2025 1% University Calif Revs Taxable Gen Bds 0.88% 91412HGE7 1,513,455 1,487,430 0.65% May 15, 2025 1% Los Angeles Calif Comm Coll Dist GOB Unlimited Tax 0.77% 54438CYK2 2,000,000 1,975,220 0.77% August 1, 2025 1% California St Taxable Various GOB 2.65% 13063DMA3 1,068,690 1,060,260 1.07% April 1, 2026 1% Pasadena USD non-callable GOB 2.07% 702282QD9 1,043,920 1,036,220 1.09% May 1, 2026 1% Los Angeles Unified SD non-callable 1.46% 544547FC9 2,009,340 2,013,900 1.35% July 1, 2026 1% Cupertino UHSD Taxable non-callable GOB 2.15% 231237P28 1,057,240 1,039,790 0.96% August 1, 2026 1% Santa Monica CCD taxable non-callable GOB 1.04% 802385RR7 755,235 742,058 0.90% August 1, 2026 1% Los Angeles Calif Comm Coll Dist GOB Unlimited Tax 1.17% 54438CYL0 998,010 994,380 1.22% August 1, 2026 1% California St Taxable BID non-callable 2.38% 13063DRD2 736,400 735,168 1.28% October 1, 2026 0% Total Municipal Bonds Investments 14,835,465 14,670,784

CITY OF SAN BRUNO
Portfolio Summary
November 30, 2021
 
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City of San Bruno
567 El Camino Real
San Bruno, CA 94066
Investments
Coupon
Rate CUSIP Book Value Market Value YTM Maturity Date
% of
Portfolio
US Treasuries & Agencies
U.S. Treasury Notes (WIT) 0.50% 91282CDM0 999,398 998,950 0.53% November 30, 2023 1% U.S. Treasury Notes 0.38% 91282CCL3 1,981,406 1,980,860 0.73% July 15, 2024 1% U.S. Treasury Notes 1.25% 912828YE4 1,013,750 1,012,850 0.75% August 31, 2024 1% U.S. Treasury Notes 0.38% 91282CCX7 1,991,563 1,977,340 0.52% September 15, 2024 1% U.S. Treasury Notes 1.50% 912828YM6 3,611,016 3,568,075 0.54% October 31, 2024 2% U.S. Treasury Notes 2.25% 912828G38 2,115,000 2,082,960 0.53% November 15, 2024 1% U.S. Treasury Notes 1.75% 912828YY0 2,081,563 2,054,380 0.58% December 31, 2024 1% U.S. Treasury Notes 1.38% 912828Z52 2,055,313 2,030,620 0.60% January 31, 2025 1% U.S. Treasury Notes 1.13% 912828ZC7 2,036,016 2,013,680 0.63% February 28, 2025 1% U.S. Treasury Notes 0.50% 912828ZF0 1,989,219 1,972,260 0.64% March 31, 2025 1% U.S. Treasury Notes 0.25% 912828ZW3 1,963,750 1,948,600 0.71% June 30, 2025 1% U.S. Treasury Notes 0.25% 91282CAB7 1,305,746 1,289,238 0.60% July 31, 2025 1% U.S. Treasury Notes 0.25% 91282CAJ0 1,958,750 1,943,120 0.75% August 31, 2025 1% U.S. Treasury Notes 0.25% 91282CAM3 1,967,446 1,942,260 0.63% September 30, 2025 1% U.S. Treasury Notes 0.26% 91282CAT8 1,465,547 1,454,235 0.76% October 31, 2025 1% U.S. Treasury Notes 0.38% 91282CAZ4 1,962,891 1,945,860 0.78% November 30, 2025 1% U.S. Treasury Notes 0.38% 91282CBC4 1,971,878 1,944,140 0.69% December 31, 2025 1% U.S. Treasury Notes 0.38% 91282CBH3 970,234 970,860 1.10% January 31, 2026 1% U.S. Treasury Notes 1.57% 912828P46 2,075,391 2,044,460 0.84% February 15, 2026 1% U.S. Treasury Notes 0.51% 91282CBQ3 1,966,172 1,950,540 0.85% February 28, 2026 1% U.S. Treasury Notes 0.75% 91282CBT7 1,884,859 1,871,576 0.91% March 31, 2026 1% U.S. Treasury Notes 0.75% 91282CBW0 1,987,813 1,968,600 0.88% April 30, 2026 1% U.S. Treasury Notes 1.63% 912828R36 1,456,000 1,430,842 0.80% May 15, 2026 1% Federal Home Loan Bank 0.88% 3130AN4T4 1,148,747 1,134,176 0.90% June 12, 2026 1% U.S. Treasury Notes 0.63% 91282CCP4 992,773 976,680 0.77% July 31, 2026 1% U.S. Treasury Notes 0.75% 91282CCW9 1,997,813 1,963,900 0.77% August 31, 2026 1% U.S. Treasury Notes 1.63% 912828YG9 1,034,219 1,023,090 0.92% September 30, 2026 1% U.S. Treasury Notes (WIT) 0.88% 91282CCZ2 997,227 987,110 0.93% September 30, 2026 1% U.S. Treasury Notes (WIT) 1.13% 91282CDG3 995,391 998,590 1.22% October 31, 2026 1% U.S. Treasury Notes (WIT) 1.13% 91282CDG3 996,367 998,590 1.20% October 31, 2026 1% U.S. Treasury Notes (WIT) 1.25% 91282CDK4 1,501,684 1,506,675 1.23% November 30, 2026 1% Total U.S. Treasuries & Agencies 52,474,937 51,985,117 45% TOTAL PORTOFLIO 150,138,478 149,499,127 0.565% 100% TOTAL INVESTMENTS, EXCLUDING BANK BALANCE 133,668,211 133,028,860 0.635% There is adequate cash flow and maturity of investm ents to meet the City's needs for the next six mont hs.

Prepared By: 12/10/2021
Reviewed By:

November 30, 2021

CITY OF SAN BRUNO
Portfolio Summary
 
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Monthly Portfolio Allocation by Investment
Sector ($Millions)
Dec 2019 Jan 2020 Feb 2020 Mar-20 Apr-20 May-20 Jun-20 Jul -20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct21 Nov-21 TriCounties Bank $7.2 $5.4 $7.2 $7.5 $8.3 $4.0 $8.7 $15.5 $1 5.9 $15.5 $17.8 $22.3 $16.4 $14.5 $22.9 $7.8 $10.3 $17.1 $12. 8 $14.9 $16.6 $16.4 $21.5 $16.5 Local Agency Investment Fund - Pooled 24.4 24.5 24.5 19 .5 27.6 27.6 28.6 28.7 28.7 28.7 28.7 28.8 56.8 64.8 64.8 74.8 7 4.9 74.9 54.9 53.5 49.5 44.4 41.3 39.6 San Mateo County Pool 34.4 37.3 37.5 38.0 43.2 43.3 49.5 49 .8 50.4 50.7 46.5 41.9 43.9 35.8 31.4 31.9 33.8 30.2 27.4 24.5 2 4.9 25.1 25.7 26.2 Government Agency Investments 31.0 31.0 29.0 25.0 23.0 21 .0 13.0 11.0 11.0 7.0 2.0 2.0 1.0 0.0 0.0 9.4 9.3 12.2 35.9 37.0 3 8.0 44.0 44.0 52.5 Municipal Bond Investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 .0 0.0 0.0 0.0 0.0 0.0 0.0 1.1 1.1 2.6 4.6 6.1 7.9 8.9 11.1 14.8 US Treasury Bills 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 .0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Certificates of Deposit 2.5 2.5 2.5 1.5 1.5 1.0 0.8 0.8 0.8 0 .8 0.8 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Money Market 3.0

3.1 5.1 10.2 2.3 4.8 8.2 2.2 2.2 6.2 11.3 11.5 0.5 6.5 6.5 0.1 0.1 0.0 1.2 0.0 2.0 0.0 2.9 0.0 Total $102.5 $103.8 $105.8 $101.7 $105.9 $101.7 $108.7 $108.0 $10 8.9 $108.9 $107.1 $107.0 $119.1 $122.1 $126.1 $125.6 $130.0 $137.5 $137.3 $136.5 $139.4 $139.3 $147.0 $150.1 Average Rate of Return 1.98% 1.97% 1.97% 1.87% 1.94% 1.85 % 1.66% 1.60% 1.56% 1.48% 1.35% 1.09% 0.95% 0.57% 0.51% 0.55% 0.50% 0.44% 0.50% 0.49% 0.51% 0.51% 0.50% 0.55% November 30, 2021
Portfolio Summary Metrics

CITY OF SAN BRUNO
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Dec 2019
Feb 2020
Ap r-20
Ju n -20
Au g-20
Oct-20
Dec-20
Feb-21
Ap r-21
Ju n -21
Au g-21
Oct21
Monthly Portfolio
Allocation by Investment
Sector ($Millions)
TriC ou nt ies Bank
Mo ney Market
C er tifica t es of Depo sit
US Trea s ur y B ills
Mu nicip a l B on d In vestmen ts
Go ver nm en t A g en cy I n vestmen ts
San Mateo Co un ty P oo l
Lo ca l A g en cy I n vestm en t Fu nd - P o oled

0. 00%

0. 50%

1. 00%

1. 50%

2. 00%

2. 50%
Dec 2019 Jan 2020 Feb 2020 Mar-20 Ap r-20 May -20 Ju n -20 Ju l -20 Au g-20 Sep -20 Oct-20 Nov-20 Dec-20 Jan -21 Feb-21 Mar-21 Ap r-21 May -21 Ju n -21 Ju l-21 Au g-21 Sep -21 Oct21 Nov-21 Investment Portfolio - Average Rate of Return
 
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Cash Fund Total
2,747,711.85 2,804,987.57
11,640,517.62 11,640,517.62
388,655.38 388,655.38
9,167,816.98 9,167,816.98
1,928,580.31 1,928,580.31
3,879,059.34 3,879,059.34
1,333,592.41 1,333,592.41
1,612,261.66 1,612,261.66
183,237.09 183,237.09
644,660.70 644,660.70
631,241.54 631,241.54
195,649.60 195,649.60
(47,145.85) (4 7,145.85)
313,576.78 31 3,576.78
124,007.76 124,007.76
10,413,635.59 10,413,635.59
97,762.64 97,762.64
2,400,715.33 2,400,715.33
2,817,455.70 2,817,455.70
1,206,957.10 1,206,957.10
75,000.00 75,000.00

0.00 0.00
700,648.55 700,648.55
1,924,567.30 1,924,572.25
913,260.44 913,260.44
5,384,532.34 5,384,532.34
4,516,867.34 4,516,867.34
414,482.82 414,482.82
20,345.54 140,383.04
45,173,766.81 45,173,803.55
556,699.11 556,699.11
44,393,360.92 44,452,671.56
(14,978,340.37) (14,978,340.37)
123,225.46 12 3,225.46
582,574.48 582,574.48
3,637,745.85 3,637,745.85
362,126.81 362,126.81
535,949.11 627,067.61
364,435.79 364,435.79
146,381,197.83 * 146,708,981.88
* Reconciliation of Pooled Cash & Investments to Portfolio Book Value In
vestment Portfolio Value 133,668,210.30
Cash on hand - Checking Account 16,470,267.01
Payroll and Accounts Payable Outstanding Checks (3,412,862.55) Deposits in Transit (344,416.93)
General Ledger Cash Balance as of November 30, 2021 146,381,197.83 Prepared By: 1 /5/2022
Reviewed By:

Page: 1
8 91 RECOLOGY SAN BRUNO 0.00
Grand Total: 327,784.05
Totals are through period: 5
707 TECHNOLOGY DEVELOPMENT 0.00
711 SELF INSURANCE 91,118.50
702 FACILITY MAINT.FUND 0.00
703 GENERAL EQUIPMENT REVOLVING 0.00
641 CITYNET SERVICES FUND 0.00
701 CENTRAL GARAGE 0.00
621 STORMWATER FUND 0.00
631 WASTEWATER FUND 59,310.64
302 LEASE DEBT SERVICE 120,037.50
611 WATER FUND 36.74
203 STREET IMPROVE. PROJECTS 0.00
207 TECHNOLOGY CAPITAL 0.00
190 DISASTER RECOVERY FUND 0.00
201 PARKS AND FACILITIES CAPITAL 0.00
152 CITY OF SB AS SUCCESSOR HOUSING AGENCY 0.00
153 RDA OBLIGATION RETIREMENT FUND 4.95
140 DEVELOPER IN-LIEU UNDERGROUNDING 0.00
151 SUCCESSOR AGENCY TO THE SB RDA - OPS 0.00
136 EMERGENCY DISASTER RESERVE 0.00
137 DEVELOPER PROJECT CONTRIBUTIONS 0.00
132 AGENCY ON AGING 0.00
133 RESTRICTED REVENUES 0.00
130 IMPACT FEES 0.00
131 IN-LIEU FEES 0.00
121 FEDERAL/STATE GRANTS 0.00
122 SOLID WASTE/RECYCL. 0.00
111 POLICE ASSET FORFEITURE 0.00
113 POLICE SPECIAL REVENUE 0.00
103 STREET SPECIAL REVENUE 0.00
104 MEASURE W TRANSPORTATION TAX 0.00
101 GAS TAX 0.00
102 MEASURE A TRANSPORTATION TAX 0.00
005 MEASURE G DISTRICT SALES TAX 0.00
006 AMERICAN RESCUE PLAN ACT 0.00
003 ONE-TIME REVENUE 0.00
004 CAP IMPROV/ONE-TIME INITIATIVE RSRV 0.00
Investments
001 GENERAL FUND 57,275.72
002 GENERAL FUND RESERVE 0.00
glCashInv.rpt Cash and Investments Report Page: 1
1/5/2022 2:55:57PM
City of San BrunoThrough period: 5
Through November 2021
1/5/2022
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:January 11, 2022
TO:Honorable Mayor and Members of the City Council
FROM:Jovan Grogan, City Manager
PREPARED BY:Jennifer Dianos, Assistant to the City Manager SUBJECT: Receive Written Update on the City’s Response Efforts to COVID- 19 BACKGROUND:

This report is to provide an update on the City’s response efforts to COVID-19, while the Emergency Operations Center (EOC) is activated. The information provided in this report is as of the time it was produced and may be subject to change.

DISCUSSION:

San Mateo County Health provides regular COVID-19 statistic dashboards through their website, smchealth.org. The City has continually used the statistics provided through the dashboards to provide a consistent reporting mechanism of COVID-19 related statistical data within San Mateo County and within the City of San Bruno. San Mateo County Health reports as of Dec. 30, 2021 there are a total of 296 cases within the last 30 days in the City of San Bruno; and as of Jan. 4, 2022 approximately 92.7% of San Bruno residents age 5+ are vaccinated. Additional statistics are attached to this report.

The Emergency Operations Center (EOC) team reviews City operations on a regular basis to ensure the existing operations are in compliance with the State/County guidelines. In an abundance of caution, the City decided to temporarily close three customer service counters: CityNet Services public counter; Finance/Utility Billing public counter; and, City Clerk’s Office public counter. The identified public counters will remain closed through January 17, 2022, and will be reassessed before then, should there be an opportunity to reopen them to the public. Members of the public can continue to conduct business with City staff remotely:

CityNet Services:
Payments can be dropped off at the outdoor payment drop box located at the CityNet Services Office, 398 El Camino Real, San Bruno
Payments can be made online at www.sanbruno.ca.gov/CityNetServices 22 of 299
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6 Contact customer support by email, [email protected] or by phone, (650) 616-3100
24/7 technical support is available by phone, (877) 646-6407 Finance/Utility Billing:
Payments can be dropped off at the outdoor payment drop box located at the rear entrance to City Hall, 570 Linden Avenue, San Bruno Payments can be made online at www.onlinebiller.com/sanbruno Contact customer support by email, [email protected] or by phone:
oUtilities - (650) 616-7086
oBusiness License – (650) 273-4371
oGeneral Finance – (650) 616-7080
City Clerk’s Office:
General information, including elections, fireworks stand permit, public records request and general claims, is available online at
www.sanbruno.ca.gov/CityClerk
Contact the Clerk’s Office by email, [email protected] or by phone, (650) 616-7061
Public service counters that provide development permits and plan reviews will remain open at a reduced capacity to support active and planned construction activity.

Operational modifications to other city services and work units will be implemented through January 14, however, no public service impacts are anticipated. Police, fire, and other emergency responses services will not be affected.

In an effort to continue to support the San Bruno community, the City of San Bruno has partnered with Curative to offer residents, employees and the general public COVID-19 testing. The PCR tests are self-collected, shallow nasal tests with no out-of-pocket costs. Those with insurance will have their test reimbursed by their insurance provider and those who are uninsured will have the cost of their test covered by the Federal CARES Act. The test results are generally provided within 1-2 days from receipt of the sample at the Curative lab. As of Jan. 10, 2022, the site will be located at San Bruno City Hall – Narita Plaza, from 8:30 a.m. to 4:30 p.m. Monday through Friday, excluding holidays. Due to high testing demand at this time, appointments are required until further notice, and can be made at curative.com or by calling (888) 702-9042. A flyer is attached to this report for reference, and was produced in English and Spanish for distribution, as well as other promotional messages for social media. Over the last nearly two years, the City of San Bruno has operated COVID-19 testing sites staffed and supported by City staff in their disaster service worker role. While partnering with 23 of 299
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6 Curative, Curative will provide full staff, support and logistics of the site. The City of San Bruno remains committed to supporting the community as we continue to navigate the familiar and unfamiliar COVID-19 territories.

Lastly, the California Department of Public Health and San Mateo County Health Department continue to recommend precautionary actions to take help prevent the spread of COVID-19 and to protect themselves and others:
Get vaccinated – Not yet vaccinated? Schedule an appointment online at myturn.ca.gov or call 1 (833) 422-4255.
Wear a mask – Local mask mandate remains in effect.
Get tested if you are feeling sick – Need to get tested for COVID-19? Visit smcgov.org/Testing to find a site and book an appointment. Stay home if you are feeling sick
The more we do collectively as a community to help decrease the spread of COVID-19, the better we protect the capacity of hospitals and essential workers to treat those that need care as well as the many other essential operations. Thank you for doing your part to protect the San Bruno community, loved ones, friends and neighbors alike.

FISCAL IMPACT:

There is no fiscal impact.

ENVIRONMENTAL IMPACT:

There is no environmental impact.

RECOMMENDATION:

Receive Written Update on the City’s Response Efforts to COVID-19 ALTERNATIVES:

The City of San Bruno’s Emergency Operations Center remains activated and there are no alternatives proposed at this time.

ATTACHMENTS:

1. San Mateo County Health Department COVID-19 Data Dashboard

2. Curative Testing Flyer (English / Spanish)
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Source: https://www.smchealth.org/data-dashboards
ATTACHMENT 1
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32 of 299
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:January 11, 2022
TO:Honorable Mayor and Members of the City Council
FROM:Jovan Grogan, City Manager
PREPARED BY:Matthew Lee, Public Works Director
SUBJECT: Adopt Resolution Authorizing the City Manager to Execute a Contract Amendment with Zero Turn Power Washing to Provide Monthly Downtown Sidewalk Pressure Washing Services in an Amount Not to Exceed $28,100 for the Remainder of FY 2021-22 and Increase the FY 2021-22 Stormwater Fund Budget by $28,100
BACKGROUND:

In order to provide a clean, inviting, and safe experience for residents and visitors in San Bruno’s downtown business district, the City manages several maintenance programs including street sweeping, trash removal, and sidewalk cleaning. Cleaning of the downtown sidewalks is provided by a private pressure washing contractor and coordinated by the Public Works Streets and Stormwater Division. The contractor removes gum, heavily soiled or miscellaneous stains from the sidewalks using only hot, pressurized water without chemicals or cleaning agents.

City crews supplement cleaning of the downtown San Mateo Avenue business district with daily street sweeping and on-sidewalk sweeping using the smaller “green machine” vehicle. Street and sidewalk sweeping provide only a surface level of cleaning and removal of loose debris. Without regular pressure washing, the sidewalks of San Mateo Avenue and the surrounding side streets accumulate gum and get heavily soiled from constant foot traffic.

DISCUSSION:

The City Council approved a five-year contract for sidewalk pressure washing cleaning services with Zero Turn Power Washing of San Carlos, California on April 14, 2020. Downtown sidewalks are cleaned every two months, or six (6) times a year. The current pressure washing schedule is tentatively scheduled during February, April, June, August, October, and December during the hours of 5:30am to 10:30am, Monday to Friday. The contractor cleans both sides of the sidewalk along San Mateo Avenue between El Camino Real and Huntington Avenue and adjacent alleys and street segments. There is typically no impact to nearby parking. Work is also scheduled early in the morning to minimize impacts to nearby businesses. Attachment 2 includes a location map.

Following requests from members of the City Council and the community for more frequent sidewalk cleanings, staff is proposing to increase the cleaning schedule from six to twelve 33 of 299
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1 annual cleanings.

An amendment to the existing contract is required to increase the scope of work. The length of the contract (contract term) and all other original requirements remain the same.

FISCAL IMPACT:

The cost for three additional cleanings through the end of June 2022 is $28,100, increasing the FY 2020-21 contract amount of $56,200 for six cleanings to an updated total of $84,300 for nine cleanings. Staff is requesting to increase the FY 2021-22 Stormwater Fund budget by $28,100 The additional expenditure will likely increase the deficit in the Stormwater Fund. Deficits in the enterprise funds are essentially supported by the General Fund. The expected cost for 12 cleanings in FY 2022-23 will be $112,400.

ENVIRONMENTAL IMPACT:

There is no environmental impact.

RECOMMENDATION:

Adopt Resolution authorizing the City Manager to execute a contract amendment with Zero Turn Power Washing to provide monthly downtown sidewalk pressure washing services in an amount not to exceed $28,100 for the remainder of FY 2021-22 and increase the FY 2021-22 Stormwater Fund budget by $28,100.

ALTERNATIVES:

1. Maintain the current bi-monthly (6 times a year) sidewalk cleaning schedule.

2. Delay the enhanced cleaning schedule until the beginning of July 2022 following development of the upcoming annual budget or some later date.

ATTACHMENTS:

1. Resolution

2. Location Map
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1 RESOLUTION NO. 2022- ___

ADOPT RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE A CONTRACT AMENDMENT WITH ZERO TURN POWER WASHING TO

PROVIDE MONTHLY DOWNTOWN SIDEWALK PRESSURE WASHING SERVICES IN AN AMOUNT NOT TO EXCEED $28,100 FOR THE REMAINDER OF FY 2021-22 AND TO INCREASE FY2021-22 STORMWATER FUND BUDGET BY $28,100
WHEREAS, following approval of the contract at the April 14, 2020 City Council Meeting, the City utilizes Zero Turn Power Washing of San Carlos, California, to pressure wash and clean the City’s downtown sidewalks along San Mateo Avenue between El Camino Real and Huntington Avenue and adjacent side streets; and WHEREAS, project work includes, but not limited to, removing gum, heavily soiled or miscellaneous stains from the sidewalks using only hot, pressurized water and without chemicals or cleaning agents, and reclaiming the cleaning water instead of passing the used water directly into the stormwater system; and

WHEREAS, following community requests for more frequent sidewalk cleanings, staff is proposing to increase the cleaning schedule from six to twelve annual cleanings, or from every other month to a monthly schedule; and
WHEREAS, an amendment to the existing contract is required to increase the scope of work, with the term of the contract and all other original requirements remaining the same; and
WHEREAS, the cost for three additional cleanings through the end of June 2022 is $28,100, increasing the original annual contract amount of $56,200 to an updated total amount of $84,300 for FY 2021-22; and
WHEREAS, an increase to the FY2021-22 Stormwater Fund budget by $28,1800 is requested to fund the enhanced cleaning schedule through June 2022; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Bruno to adopt resolution authorizing the City Manager to execute a contract amendment with Zero Turn Power Washing to provide monthly downtown sidewalk pressure washing services in an amount not to exceed $28,100 for the remainder of FY 2021-22 and to increase the FY 2021- 22 Stormwater Fund budget by $28,100.

Dated: January 11, 2022
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2 ATTEST:

Melissa Thurman, City Clerk
-o0o-
I, Melissa Thurman, City Clerk, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Bruno this 11th day of January 2022 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT:Councilmembers:
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CITY OF SAN BRUNO
Pressure Washing Services Request for Proposals
Location Map Page 1 of 1
ATTACHMENT 4

Location Map

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:January 11, 2022
TO:Honorable Mayor and Members of the City Council
FROM:Jovan Grogan, City Manager
PREPARED BY:Sandeep Krishnamurthy, Director
SUBJECT: Adopt a Resolution authorizing the City Manager to increase the contract amount by $25,000 to a new, revised total of $212,000 for Bear Cloud Technologies’ migration of the City of San Bruno’s telephony services from on-premise Cisco Call Manager to Cisco Hybrid Cloud Calling and purchase compatible telephone handsets.

BACKGROUND:

The City Council approved $187,000 on 24 August 2021 to migrate the City’s existing on- premise Cisco Call Manager to Cisco WebEx Cloud calling.

After Council’s approval, the Information Technology Department began contract finalization and additional due diligence with BearCloud. In these discussions the need for additional security as it related to the City’s public safety function was identified. To resolve this need, BearCloud revised their proposal to include a hybrid solution which will satisfy the needs of the City’s public safety functions. The hybrid solution identified entails an additional expenditure of $19,592 for payment per the new proposal and a 28% contingency on the additional amount requested to cover any potential upward revision to the revised quote.

DISCUSSION:

Public Safety Needs:

The nature of Public Safety’s daily functions involves the processing and exchange of confidential and sensitive information, making the need for a secure communications infrastructure an extremely high priority. The original design proposed by BearCloud, although very secure, and in use by innumerable customers in both the public and private sector, does not have the same level of control and auditability as an on-premise solution. To provide the highest level of security, BearCloud revised their proposal to include an on-premise component, which will provide the level of control necessary to meet the needs of San Bruno’s public safety departments.

Features & Functionality:

There will be no substantive differences in functionality with the new hybrid solution for users compared to the original proposal. The new proposal does offer an easy migration to a complete cloud calling in 18 to 24 months, which is when Cisco is expected to introduce a cloud solution with the equivalent level of security and auditability as their on-premise solution.

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8 FISCAL IMPACT:

If approved, the increase in the project’s cost by $25,000 will raise the project’s total first year’s cost to $212,000 from $187,000. This new total will be included in the approved 2021-22 Technology Fund Capital Improvement Project.

ENVIRONMENTAL IMPACT:

There is no environmental impact.

RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to increase the contract amount by $25,000 to a new, revised total of $212,000 for Bear Cloud Technologies’ migration of the City of San Bruno’s telephony services from on-premise Cisco Call Manager to Cisco Hybrid Cloud Calling and purchase compatible telephone handsets.

ALTERNATIVES:

1. Direct changes to the proposed agreement with BearCloud for design and implementation of Cisco Hybrid Cloud Calling.

2. Provide alternative direction on the topic of the replacing the City’s Cisco Telephone System.

ATTACHMENTS:

1. Resolution
39 of 299
1 5
1 RESOLUTION NO. 2022 - XXX

ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO INCREASE THE CONTRACT AMOUNT BY $25,000 TO A NEW, REVISED TOTAL OF $212,000 FOR BEAR CLOUD TECHNOLOGIES’ MIGRATION OF THE CITY OF SAN BRUNO’S TELEPHONY

SERVICES FROM ON-PREMISES CISCO CALL MANAGER TO CISCO HYBRID CLOUD CALLING AND PURCHASE COMPATIBLE TELEPHONE HANDSETS.

WHEREAS, the manufacturer of the City’s Cisco Unified Communications Manager (CallManager), which is the foundation the City’s telephone system, has declared End-of-Sale and End-of-Life for the current model; and
WHEREAS, an upgrade to the current supported on-premise version of Cisco Unified Communications Manager (CallManager) and purchase of compatible replacement of telephone sets is estimated to cost over $600,000; and
WHEREAS, the City had previously negotiated a thirty-six-month service agreement for a Cisco WebEx Cloud Calling solution and compatible telephone handsets with Bear Cloud Technologies, for an amount not to exceed $187,000; and WHEREAS, a revised hybrid Cisco Hybrid Cloud Calling solution that meets the requirements of San Bruno’s public safety functions will entail an additional expenditure of $19,592 for payment per the revised proposal from Bearcloud; and
WHEREAS, an additional $5,408 (a twenty-eight percent (28%) contingency on the additional amount of requested amount of $19,592) will cover any future potential upward revision to the revised quote; and
WHEREAS, the FY 2021-22 Information Technology Division’s Capital Improvement Plan includes $212,000 (original $187,000 plus additional $19,592 for hybrid solution plus $5,408 contingency) for the implementation and cost for this project; and..

NOW, THEREFORE, BE IT RESOLVED that the that the San Bruno City Council authorizes the City Manager to execute a contract with BearCloud Technologies to migrate the on-premises Cisco Call Manager to Cisco Hybrid Cloud Calling and purchase compatible telephone handsets, in an amount not to exceed $212,000.
-oOo-
I, Melissa Thurman, City Clerk, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Bruno this 11th day of January 2022 by the following vote:

AYES: COUNCILMEMBERS: ____________________________________ NOES: COUNCILMEMBERS: ____________________________________ ABSENT: COUNCILMEMBERS: ____________________________________ ATTEST:
_________________________________
Melissa Thurman, MMC
City Clerk
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:January 11, 2022
TO:Honorable Mayor and Members of the City Council
FROM:Jovan Grogan, City Manager
PREPARED BY:Ann Mottola, Director
SUBJECT: Adopt Resolution Appropriating $72,572 from the General Fund to the Community Services Library Division Budget to Restore Public Hours of Operation to Pre-pandemic Levels
BACKGROUND:

The current Community Services, Library Division budget for FY 2021-22 includes 38 public hours of operation per week. As visitors and circulation numbers continue to increase since re-opening to the public on April 1, 2021, Staff is requesting a budget increase to allow hiring of part time staff to increase the Library’s public hours from 38 hours per week to the pre-pandemic service level of 55 hours per week. Additionally, the usage trends of the Library will require an increase in the Books and Materials budget so it can restore the collection to pre-pandemic levels.

DISCUSSION:

Pre-pandemic, the number of visitors to the Library averaged 17,154 per month. When the Library reopened in April 2021 for 20 hours per week, the average number of monthly visitors through June was 2,036. When the Library increased hours to 38 per week in July 2021, monthly visits immediately increased to 5,825 in that first month. There were 8,098 visits in October 2021. This was the peak number of visitors since reopening as there is typically a decline in Library visitors Thanksgiving through New Year’s.

Restoring public hours to 55 hours per week will require hiring an additional part-time Library Page, Senior Clerk, and Librarian, and increasing existing part-time employee hours. Staff estimates it will take several months to recruit staff and anticipates hours of operation can be restored no later than April 1, 2022. The annual budget to increase public hours is $74,600. The amount needed this fiscal year if the increase begins April 1, 2022, is $18,650.

Staff is requesting this budget increase to allow hiring of part time staff to increase the Library’s public hours from 38 hours per week to the pre-pandemic service level of 55 hours per week. The table below illustrates the public hours of operation from the pre-pandemic level of 55 hours per week through the current operational level of 38 hours per week. The requested funding will restore public hours to that of 2018-19.

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4 SAN BRUNO PUBLIC LIBRARY PUBLIC HOURS
Day FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22

Open
Hours
# of
hrs.

Open
Hours
(Jul‘19-
Mar ‘20)
# of
hrs.

Open
Hours
(May ’21-
Jun ’21)
# of
hrs.

Open
Hours
# of
hrs.

Sunday N/A 0 N/A 0 N/A 0 N/A 0
Monday 10a-8p 10 10a-8p 10 11a-1p/4p-6p 4 1p-8p 7
Tuesday 10a-8p 10 10a-8p 10 11a-1p/4p-6p 4 12p-6p 6
Wednesday 10a-8p 10 10a-8p 10 11a-1p/4p-6p 4 12p-6p 6
Thursday 10a-8p 10 10a-8p 10 11a-1p/4p-6p 4 12p-6p 6
Friday 10a-6p 8 10a-6p 8 11a-1p/4p-6p 4 12p-6p 6
Saturday 10a-5p 7 10a-5p 7 N/A 0 10a-5p 7
Total #
Hours
55 55 20 38
Additionally, due to the usage trends of the Library collection, staff is also requesting that the Book and Materials budget be restored to pre-pandemic levels. Library collections are not static. Books need to be replaced due to wear and tear. Books also must be replaced when information changes to ensure that the community has confidence that the information found in the Library’s collection is accurate. For example, a fifth grader who has an assignment on the solar system will be provided incorrect information if the Library only has older books that state that Pluto is a planet.

The fiscal year 2019-20 Books and Materials budget was $161,922. Shortly after the Bay Area counties stay-at-home order in March 2020, Library Staff ceased all book ordering for the remainder of the fiscal year resulting in 1,930 items not purchased. The Library had expended $132,125 of its $161,922 budget. In the FY2020-21 budget, the Books and Materials budget was reduced to $108,000, a reduction of 33%. This funding reduction resulted in the Library purchasing 3,600 fewer items than it would have under a normal budget. Together, these reductions translated into 5,530 fewer books purchased, or a 6% loss of the 86,933-item collection. The FY 2021-22 budget was held at $108,000, meaning the Library will experience a loss in its collection if not increased. Given the robust use of the Library, even during the pandemic with the implementation of curbside pickup, Staff is requesting an additional $53,922 so that the Library’s Books and Materials budget be restored to pre-pandemic levels of $161,922.

The average monthly circulation of the Library collection pre-pandemic was 29,417. This includes both physical books and e-books. (Physical books typically out-pace eBooks 10:1) The June 2021 average was 19,436. When public hours increased in July, that number increased to 23,166. In October, the number of materials checked out was 23,839.

FISCAL IMPACT:

The total cost for restoring public operations to pre-pandemic levels is $72,572. This includes $18,650 in part time staffing costs and $53,922 to restore the Books and Materials Budget.

Funding will be provided by the General Fund balance.

ENVIRONMENTAL IMPACT:

There is no environmental impact.

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4 RECOMMENDATION:

Adopt Resolution Appropriating $72,572 from the General Fund to the Community Services Library Division Budget to Restore Public Hours of Operation to Pre-pandemic Levels.

ALTERNATIVES:

Do not move forward the General Fund appropriation and maintain Library public operations at 38 hours per week and continue to maintain Library collection at a reduced level.

ATTACHMENTS: 1. Resolution
43 of 299
RESOLUTION NO. 2022 - ___
RESOLUTION APPROPRIATING $72,572 FROM THE GENERAL FUND TO THE

COMMUNITY SERVICES LIBRARY DIVISION BUDGET TO RESTORE PUBLIC

HOURS OF OPERATION TO PRE-PANDEMIC LEVELS
WHEREAS, in June 2021, City Council approved the FY 2021-22 budget including funding for the Library to allow 38 hours;
WHEREAS, the increase in visitors and circulation of Library materials indicates a demand for these services; and
WHEREAS, Library staff has determined the increase of hours would require hiring additional part time staff with a cost of $18,650 for the remainder of FY 2021-22 with an April 1, 2022, date of restored hours; and
WHEREAS, Staff has determined the Books and Materials budget requires an increase of $53,922 in order to restore the collection to pre-pandemic levels after two years of reduced funding in the Books and Materials budget;
NOW, THEREFORE, BE IT RESOLVED that the City Council authorizes an appropriation of $72,572 from General Fund to the Community Services Library Division budget to restore the public hours of operation from 38 hours per week to the pre-pandemic level of 55 hours per week.

Dated:

ATTEST:

Melissa Thurman, MMC
City Clerk
-o0o-
I, Melissa Thurman, City Clerk, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Bruno this 11th day of January 2022 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT:Councilmembers:
44 of 299
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:January 11, 2022
TO:Honorable Mayor and Members of the City Council
FROM:Jovan Grogan, City Manager
PREPARED BY:Pamela Wu, Director
SUBJECT: Approve Letter to Cure Alleged Brown Act Violations Alleged by the San Mateo Union High School District Regarding December 14, 2021 Meeting Agenda Item Related to General Plan Policy OSR-8, Regarding Former Crestmoor High School Site at 300 Piedmont Avenue, San Bruno CA BACKGROUND:

Park and Recreation Policy OSR-8, contained in the City’s General Plan, requires that the approximately 12-acre playing fields on the former Crestmoor High School site be preserved.

On December 14, 2021, the City Council, at its regular meeting, adopted a resolution regarding Policy OSR-8. The resolution was listed on the meeting agenda as Consent Calendar Item "n" with the following description: "Adopt Resolution Regarding Open Space and Recreation Policy OSR-8." Prior to the meeting, the San Mateo Union High School District submitted a letter regarding the matter. At the meeting, two individuals representing the San Mateo Union High School District provided public comment on Item "n." Thereafter, the City Council unanimously approved the Consent Calendar, including Item "n."
On December 22, 2021, the City received a letter from the District's legal counsel alleging that the City Council had violated the Ralph M. Brown Act (Government Code section 54950 et seq.) at the December 14 meeting. The District's letter alleged that the following violations of the Brown Act had occurred with respect to Consent Calendar Item "n":

1. The agenda description for Consent Calendar Item "n" failed to adequately describe the action that would be taken by the City Council, in violation of Government Code § 54954.2(a)(1); and

2. The City Council had failed to allow public comment on consent calendar items, including Item "n," in violation of Government Code § 54954.3(a).

The District's letter demanded that the City Council cease and desist from these Brown Act violations and take the following steps to cure the violations: (1) re-agendize Item "n" with a complete description of the subject matter and action to be taken; (2) agendize the item as a regular business item, not a consent calendar item; (3) allow public comment on the item; and (4) separately discuss the item prior to a vote.

Although the City does not agree that any of its actions violated the Brown Act, to avoid the possibility of unnecessary litigation and the associated expenditure of public resources, staff recommends that the City Council move to unconditionally commit to ceasing, desisting and not repeating the actions described in the District's letter. 45 of 299
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2 DISCUSSION:

The Brown Act requires local government business to be conducted at open and public meetings, except in certain limited situations.

Of relevance here, the Brown Act requires that the City post an agenda "containing a brief general description of each item of business to be transacted and discussed at the meeting." The brief description typically need not be more than 20 words. As a general principle, agenda descriptions should provide enough information to permit a member of the public to make an informed decision about whether they want to attend or participate in a discussion on the issue.

The agenda must also provide an opportunity for members of the public to address the legislative body on any item of interest to the public, "before or during the legislative body's consideration of the item."
The video recording of the City Council’s December 14 meeting demonstrates that the Mayor twice asked for public comment on the consent calendar, which included the item regarding Policy OSR-8, first at the time general public comment was requested and a second time when the consent calendar was considered. District representatives did in fact speak on the item in response to the Mayor’s request. The Brown Act places no limitations on which items of business may be placed on the consent calendar (except that this item may not be placed on consent), nor does it require that each item on consent be separately discussed. The agenda description provided adequate information to permit a member of the public to comment on the item. The City does not believe that any of its actions violated the Brown Act.

Nonetheless, to avoid the potential for unnecessary litigation and the resulting expenditure of public resources, the Brown Act provides an opportunity for the City to cure any alleged violations. Within 30 days after the receipt of a written demand, the City Council may either cure or correct the challenged action and inform the party who filed the demand of its correcting actions or inform the demanding party that it does not intend to cure or correct. If the City Council makes an unconditional commitment within 30 days to cease and desist from, and not repeat the past action that allegedly violated the Brown Act, litigation cannot be sustained, and the complaining party is not entitled to attorneys’ fees. The unconditional commitment must be approved by the City Council in open session at a regular or special meeting as a separate item of business not on the consent calendar, and the City must provide a letter in substantially the form set forth by the Brown Act that is signed by the chairperson of the entity To prevent the further litigation and the unnecessary expenditure of public funds, staff recommends that the City Council, without admitting any violation of the Brown Act, provide the District with a notice of unconditional commitment to cease and desist from, and not repeat, the actions alleged as Brown Act violations in the District's December 22nd letter. The proposed notice, which substantially comports with the form set forth in the Brown Act, is attached to this staff report as Exhibit A.

In the letter, the City has agreed to take the following actions:

1. Re-agendize the item as a separate business item with a description comporting with the requirements of the Brown Act;

2. Take public comment on the item, as it did before; and 46 of 299
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1 1
2 3. Separately discuss the item.

The item has been re-agendized for this meeting in conformance with these requirements.

FISCAL IMPACT:

The recommended action will avoid unnecessary litigation and the resulting expenditure of public funds.

ENVIRONMENTAL IMPACT:

Under Public Resources Code Section 21065 and CEQA Guidelines Section 15378, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, in that agreeing to re-agendize an item has no potential for resulting in a physical change in the environment, either directly or indirectly.

RECOMMENDATION:

Approve Letter to Cure Alleged Brown Act Violations Alleged by the San Mateo Union High School District Regarding December 14, 2021 Meeting Agenda Item Related to General Plan Policy OSR-8, Regarding Former Crestmoor High School Site at 300 Piedmont Avenue, San Bruno CA
ALTERNATIVES:

Take no action. The Brown Act would permit the District to file suit against the City for the alleged Brown Act violations should the City choose not to act.

DISTRIBUTION:

1. Kevin Skelly, Superintendent, San Mateo Union High School District

2. Harold Freiman, Lozano Smith Attorneys at Law

3. Elaine Breeze, Senior Vice President of Development, SummerHill Apartment Communities / SummerHill Homes
ATTACHMENTS:

1. Letter to legal counsel for San Mateo Union High School District 47 of 299

CITY OF SAN BRUNO
Rico E. Medina OFFICE OF THE MAYOR
Mayor
January 11, 2022
Via U.S. Mail & Electronic Mail
Harold M. Freiman

LOZANO SMITH
2001 North Main Street, Suite 500
Walnut Creek, CA 94596
Email: [email protected]
Re: Unconditional Commitment to Cease and Desist from Brown Act Violations Alleged in Letter of December 22, 2021 Letter to City of San Bruno City Clerk Dear Mr. Freiman:

The City of San Bruno City Council ("City Council") has received your cease and desist letter, dated December 22, 2021 ("December 22nd Letter"), submitted on behalf of your client, the San Mateo Union High School District, alleging that the following described actions of the City Council violated the Ralph M. Brown Act:

1. The City’s description of Consent Calendar Item "n": "Adopt Resolution Regarding Open Space and Recreation Policy OSR-8" failed to adequately describe the subject matter or action being taken by the City Council, in violation of Gov. Code § 54954.2(a)(1).

2. At the December 14, 2021 meeting, the City Council failed to provide an opportunity for public comment on the Consent Calendar (Item 6), including Item "n," in violation of Gov.

Code § 54954.3(a).

In order to avoid unnecessary litigation and without admitting any violation of the Brown Act, the City Council hereby unconditionally commits that it will cease, desist from and not repeat the challenged past action as described above. In particular, the City has taken the actions demanded in your letter of December 22:

1. Re-agendized Item “n” for its meeting of January 11, 2022 with a description of the subject matter and action to be taken;

2. Agendized the item as a regular business item, not a consent calendar item;

3. Allowed public comment on the item (note that public comment was previously allowed on Item “n”); and
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3 4. Separately discussed the item prior to a vote.

The City Council may rescind this commitment only by a majority vote of its membership taken in open session at a regular meeting and noticed on its posted agenda as “Rescission of Brown Act Commitment.” You will be provided with written notice, sent by any means or media you provide in response to this message, to whatever address or addresses you specify, of any intention to consider rescinding this commitment at least 30 days before any such regular meeting. In the event that this commitment is rescinded, you will have the right to commence legal action pursuant to subdivision (a) of Section 54960 of the Government Code. That notice will be delivered to you by the same means as this commitment or may be mailed to an address that you have designated in writing.

Respectfully,
Rico E. Medina
Mayor, City of San Bruno
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:January 11, 2022
TO:Honorable Mayor and Members of the City Council
FROM:Jovan Grogan, City Manager
PREPARED BY:Pamela Wu, Director
SUBJECT: Adopt Resolution Confirming that General Plan Open Space and Recreation Policy OSR-8 Requires Dedication of Approximately 12 Acres of Playing Fields at the Former Crestmoor High School Site at 300 Piedmont Avenue, San Bruno CA
BACKGROUND:

The San Mateo Union High School District ("District") has solicited proposals from developers to reuse Crestmoor High School, although no application has yet been submitted to the City.

General Plan Policy OSR-8, along with other General Plan policies, requires that the approximately 12-acre playing fields on the site be preserved. Staff recommends that the City Council adopt the attached resolution to confirm this General Plan requirement.

The City Council initially adopted the attached resolution at its December 14, 2021 meeting. At that meeting, the Mayor requested public comments on the consent calendar twice, once immediately after the request for public comments for items not on the agenda and again during consideration of the consent calendar. The School District submitted a letter in advance of the meeting, and two representatives presented their views during the public comment period.

Nevertheless, on December 22, 2021 the City received a letter from the District alleging that the City’s action did not conform with the Brown Act. The City does not believe that the initial action violated the Brown Act, and agenda item 8.a. addresses those allegations. Nonetheless, to avoid the possibility of unnecessary litigation and the associated expenditure of public resources, this item is before the City Council again for adoption of a resolution to confirm that General Plan Policy OSR-8 requires dedication of approximately 12 acres of playing fields.

DISCUSSION:

The Crestmoor High School playing fields, depicted in the map attached to the resolution as Exhibit A, were developed by the School District, used extensively by the public, and have been maintained with public funds. Since 1987, when the high school closed, the playing fields have been maintained and managed by the City, remained open to the public for active and continuous use, and provided an important recreational resource for the community. Crestmoor High School is identified in the City's General Plan as providing 12 acres of recreational opportunities for San Bruno residents. (See Open Space and Recreation Element, Table 5-3.) Clearly the preservation of the playing fields is a matter of broad public policy. 50 of 299
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1 1
3 The City's General Plan Policy OSR-8 states that the existing playing fields should be preserved, as follows:

OSR-8: During reuse of the former Crestmoor High School site (designated for single-family residential development), preserve the existing playing fields for recreational use per direction of the General Plan Update Committee.

This policy requires preservation of the playing fields on the Crestmoor High School property.

The Merriam-Webster dictionary defines “preserve” as "to keep (something) in its original state or in good condition". The Cambridge Dictionary defines “preserve” as "to keep something as is, especially in order to prevent it from decaying or being damaged or destroyed".

Other parts of the General Plan support the requirement to preserve the playing fields:

Housing Element Program 2-D: "Allow the redevelopment of the Crestmoor site to utilize clustering of new housing units to facilitate the preservation of open space and playgrounds according to General Plan Policy OSR-8 while not reducing the overall number of units achievable on the site." (emphasis added)
OSR-4: "Undertake a program to add 20 acres of parkland to the City system over the next 20 years. Seize opportunities to develop and/or maintain parks and recreation facilities within existing residential neighborhoods through acquisition or preservation of former school facilities."
LUD-1: "Promote development of single-family housing on former school sites owned by public school districts. Retain existing recreation facilities for resident use, whenever possible." The City's zoning code was adopted to protect and promote the public health, safety, comfort, convenience and general welfare of the City and additionally serves to "provide a precise guide to the physical development of the city in order to achieve the land uses and open spaces described in the General Plan". (San Bruno Municipal Code Section 12.76.030.A.) Projects must conform with the General Plan to be approved.

Lastly, the California Environmental Quality Act (CEQA) Environmental Impact Report (EIR) for the City's general plan relied on Policy OSR-8, among other open space and recreation element policies, to reduce impacts to parks to a less than significant impact. The analysis states that projected increases in housing and population would result in the need for additional parkland, or significant improvements to existing parkland to fully serve the City's residents with recreational facilities and programs. It concludes that with implementation of the open space and recreation policies, including OSR-8, the park impacts will be reduced to a less than significant level. The playing fields at Crestmoor High School are an existing recreational facility which the General Plan and General Plan EIR contemplated would be preserved to meet the needs of the existing and projected population of the City.

Preservation of the playing fields requires not only that they be physically preserved in their present location, but also that they continue to be open to the public and dedicated to the City. This has been the City’s consistent determination regarding the requirements of Policy OSR-8. The purpose of the attached resolution is to reiterate and 51 of 299
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3 confirm that determination. The attached resolution is consistent with existing General Plan policies and does not make any amendments to the City's General Plan.

FISCAL IMPACT:

The City Council action is confirming an existing General Plan policy. There is no fiscal impact of this action.

ENVIRONMENTAL IMPACT:

Under Public Resources Code Section 21065 and CEQA Guidelines Section 15378, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, in that confirming the application of an existing General Plan policy has no potential for resulting in a physical change in the environment, either directly or indirectly, and therefore does not require environmental review.

RECOMMENDATION:

Adopt Resolution Confirming that General Plan Open Space and Recreation Policy OSR-8 Requires Dedication of Approximately 12 Acres Of Playing Fields at the Former Crestmoor High School.

ALTERNATIVES:

No action. Policy OSR-8 is part of the General Plan and requires preservation of the playing fields regardless of the City's action.

DISTRIBUTION:

1. Kevin Skelly, Superintendent, San Mateo Union High School District

2. Harold Freiman, Lozano Smith Attorneys at Law

3. Elaine Breeze, Senior Vice President of Development, SummerHill Apartment Communities / SummerHill Homes
ATTACHMENTS:

1. Resolution No. 2022-xx, a Resolution of the City Council of the City of San Bruno Confirming that General Plan Open Space and Recreation Policy OSR-8 Requires Dedication of Approximately 12 Acres of Playing Fields at the Former Crestmoor High School 52 of 299
RESOLUTION NO. 2022 - xx

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO CONFIRMING THAT GENERAL PLAN OPEN SPACE AND RECREATION POLICY OSR-8 REQUIRES DEDICATION OF APPROXIMATELY 12 ACRES OF PLAYING FIELDS AT THE FORMER CRESTMOOR HIGH SCHOOL

WHEREAS, the City's 2009 General Plan contains policy OSR-8 which states: "During reuse of the former Crestmoor High School site (designated for single-family residential development), preserve the existing playing fields for recreational use per direction of the General Plan Update Committee"; and

WHEREAS, the word "preserve" , as defined in dictionaries , has the following relevant definitions:

1. to keep something as it is, especially in order to prevent it from decaying or being damaged or destroyed. (Cambridge English Dictionary).

2. To keep (something) in its original state or in good condition ; to keep safe from injury, harm or destruction; to keep intact; maintain (Merriam-Webster); and

WHEREAS, from 1987 to 2021, the playing fields at the former Crestmoor High School were open to the public for use as playing fields and were maintained and managed by the City of San Bruno, and the use of the playing fields is a matter of broad public policy; and

WHEREAS, other General Plan Policies support the requirement to preserve the public use of the playing fields on the former Crestmoor High School site, including but not limited to:

1. Policy LUD-1: Promote development of single-family housing on former school sites owned by public school districts. Retain existing recreation facilities [on former school sites] for resident use, whenever possible.

2. Table 5-3, Open Space and Recreation Element , designates approximately 12 acres at the former Crestmoor High School as an “additional recreation facility in San Bruno.”

3. Policy OSR-4: Undertake a program to add 20 acres of parkland to the City system over the next 20 years. Seize opportunities to develop and/or maintain parks and recreation facilities…through acquisition or preservation of former school facilities.

4. Housing Element Policy 4-D: Allow the redevelopment of the Crestmoor site to utilize clustering of new housing units to facilitate the preservation of open space and playgrounds according to General Plan Policy OSR -8 while not reducing the overall number of units achievable on the site; and

WHEREAS, through this resolution, the City intends to reiterate and confirm that Policy OSR-8 requires that the playing fields on the former Crestmoor High School site remain in their present location and available for public use.

NOW, THEREFORE, BE IT RESOLVED, that the San Bruno City Council hereby:

1. Confirms and declares that , if a plan is proposed for the reuse of the former Crestmoor High School site, Policy OSR -8 of the City’s General Plan requires that the approximately 12- acre area occupied by the playing fields shall be made available for public use through dedication to the City of San Bruno and shall be kept intact in its present condition. Exhibit A, attached hereto and incorporated herein by this reference, illustrates the location of the playing fields; and

2. Directs the Community Development Director to attach this resolution to the City’s General Plan; and

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3. Finds this action does not constitute a "project" within the meaning of the California Environmental Quality Act, Public Resources Code Section 21065 and Guidelines Section 15378, in that it has no potential to cause either a direct physical change in the environment , or a reasonably foreseeable indirectly physical change in t he environment, in that confirming the application of an existing General Plan policy has no potential for resulting in a physical change in the environment, either directly or indirectly, and therefore does not require environmental review.

---oOo---

I hereby certify that foregoing Resolution No. 2022 -
was adopted by the San Bruno City Council at a regular meeting on January 11, 2022 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST:

_________________________________
Melissa Thurman, MMC
City Clerk

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Crestmoor Site Field Areas

Entire Site

40.32 acres
Playing Fields

12.4 acres
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:January 11, 2022
TO:Honorable Mayor and Members of the City Council
FROM:Jovan Grogan, City Manager
PREPARED BY:Qianyu Sun, Director
SUBJECT: Accept the City’s Annual Comprehensive Financial Report, the Measure A and W Fund Reports, and the Memorandum on Internal Controls and Required Communications for the Fiscal Year Ended June 30, 2021 BACKGROUND:

The City’s independent auditor, Maze & Associates, completed the audit of the City’s financial statements and provided the auditor’s reports for the fiscal year ended June 30, 2021. The Finance Department prepares the City’s financial statements in the form required of the Annual Comprehensive Financial Report (ACFR) as specified in the City’s municipal code Section

2.28.030(b). The Government Accounting Standards Board (GASB) recommends the elements for the ACFR format. The ACFR and the related financial statements fully disclose the financial condition of the City and other reporting units of the City.

The following statements for the year ended June 30, 2021 are presented for the City Council’s review:

1. Annual Comprehensive Financial Report

2. Measure A Funds, Report on Compliance with the Agreement for Distribution of San Mateo County Measure A Funds for Local Transportation Purposes

3. Measure W Funds, Report on Compliance with the Agreement for Distribution of San Mateo County Measure A Funds for Local Transportation Purposes

4. Memorandum on Internal Controls and Other Communications (MOIC) The ACFR shows the total of all financial accounting for the fiscal year. As a guide to reading the ACFR, it is made up of three primary sections:

Introductory Section: provides general information of the City which includes the letter of transmittal, list of principal officials, and organizational chart.

Financial Section: provides the overall financial information of the City which includes the report of the independent auditor, management’s discussion and analysis (MD&A), the basic financial statements, notes to the financial statements, required supplementary information, and other supplementary schedules and statements.

Statistical Section: provides a broad range of operational, economic, and historical data that provides a context for assessing the City’s economic condition. This section provides information about the City’s general financial trends, revenue capacity, debt capacity, economic and demographic trends, and operating information.
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0 The format of the ACFR is designed to serve the needs of the following three primary users: the City Council and other governmental oversight bodies, the public, and agencies assessing the City’s creditworthiness.

For a consecutive year, the City’s ACFR for the year ended June 30, 2020 was awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officer’s Association (GFOA) of the United States and Canada. The Certificate of Achievement is the highest form of recognition for excellence in state and local government reporting and confirms that the published ACFR is an efficiently organized and readable annual financial report.

The City is responsible for complying with the Agreement for Distribution of San Mateo County Measure A and Measure W Funds for Local Transportation Purposes between the City and the San Mateo County Transportation Authority entered into on August 18, 1989 and September 24, 2019, respectively. This agreement requires an annual compliance audit by an external audit firm of the City’s allocation of Measure A and Measure W funds. That report is attached to this staff report, as well as the Memorandum on Internal Controls and Required Communications (MOIC).

DISCUSSION:

Maze & Associates completed audits of the City’s financial statements, Measure A and Measure W sales tax special revenue, and prepared the Memorandum on Internal Control and Required Communications (MOIC). Maze & Associates found the general-purpose financial statements present fairly, in all material ways, the City’s financial position as of June 30, 2021 (Independent Auditors’ Report, Opinions). The audited financial statements include the statement of net position, statement of activities and changes in net position, balance sheets, statements of revenues, expenditures, and changes in fund balances, and statements of cash flows.

Key financial highlights for fiscal year ending June 30, 2021 are as follows:

General Fund
At the end of the fiscal year, total fund balance increased by $8 million to $35.4 million. This increase was mainly contributed by revenue increases while expenditures totally just below the previous fiscal year.

General Fund revenues totaled $56.2 million in FY 2020-21, about $9.9 million more than the previous fiscal year. Sales taxes were the biggest contributors of the increase. Bradley-Burns local sales and use tax increased by $5.7 million after the City completed a sales tax sharing agreement with a major tax payer in San Bruno. Measure G sales tax took effect in April 2020 and the City received a full year of revenue in FY 2020-21, hence an increase of $2.8 million from the previous year. Other taxes, such as property tax and card room tax saw moderate increases, about 3%. Two types of tax revenues experienced significant decreases from the previous year: transient occupancy taxes fell by $1.4 million due to the impact of the Coronavirus pandemic, and motor vehicle in-lieu tax from the State of California decreased by $1.8 million when more school districts in the San Mateo County converted from non-basic aid to basic aid school districts. Nevertheless, shortfalls in these two taxes were more than made up by other revenue categories. General Fund revenues were also boosted by the increase in license and permits and community benefit contributions as development activities picked up. 57 of 299
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0 Compared to FY 2019-20 actual expenditures, General Fund overall expenditures decreased slightly by $0.2 million. This was a concerted effort from the entire city to keep expenditures under control when revenue outlooks dimmed during the pandemic. Overall expenditures were over $1.6 million below the final budget. Compared with the previous fiscal year, Community Services Department had the most decrease in expenditures, $1.2 million, as a result of service reductions during the Coronavirus outbreak.

Reserves
The City Council adopted a reserve policy in 2013 to ensure financial stability and sustainability of operations during times of fiscal constraint and emergencies. The City’s General Fund reserve fund balances as of June 30, 2021 are listed in the table below. The General Fund Reserve fund balance was slightly below the target, 25% of the budgeted General Fund Expenditures. The General Fund Contingency Fund and Capital Improvement /One-Time Initiative Reserve Funds were both above the policy targets when actual revenue received exceeded expectations. In April, Council appropriated the $290,000 from the Emergency Disaster Reserve Fund to support the San Mateo County Strong Restaurant, Brewery and Winery Relief Program. The reserve has been replenished with the receipt of the American Rescue Plan Act (ARPA) funding.

General Fund Reserves and Re Balances Reserve Policy Target FY2020-21
Actual Fund
Balance
1 General Fund Reserve
25% of annual
expenditures (or $12.4
Million)
$12.3 Million
2 General Fund Contingency Fund $1.5 Million $5.5 Million 3 Emergency Disaster Reserve Fund $3.0 Million $2.0 Million 4 Capital Improvement/One-Time Initiative
Reserve $5.0 Million Goal $9.9 Million
Sub-Total – General Fund Reserves $22.1 Million $29.7 Million 5 General Fund Equipment Reserve $0 $3.7 Million
5 Measure G District Sales Tax $0 $1.2 Million
Total $22.1 Million $34.6 Million
Enterprise Funds
Water Fund net position increased by $5.4 million to $65.3 million as a result of planned rate increases approved by City Council in 2017, which will be used to implement a number of critical infrastructure improvement projects in the coming years. A five-year rate plan was established and provides for annual 5% rate increases through June 30, 2022.

Wastewater Fund net position increased by $5.9 million to $66.4 million as a result of planned rate increases approved by City Council in 2017, which will be used to implement a number of critical infrastructure improvement projects in the coming years. A five-year rate plan was established and provides for annual 5% rate increases through June 30, 2022.

Stormwater Fund net position decreased by $0.6 million to $5 million due to operating expenses 58 of 299
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1 0
0 exceeding revenues and transfers in. The long-range financial forecast projects that, without any additional dedicated revenue to support the enterprise, the Stormwater Fund will yield a negative fund balance in FY 2021-22 and sink into deficit further each year thereafter. To keep the Stormwater Enterprise operation afloat, Council appropriated $1 million transfer from APRA to the Stormwater Fund. It is in the best interest of the City to explore other funding sources, such as increase of stormwater related property assessment, state and federal aid on infrastructural improvements, etc., to sustain Stormwater operations and capital improvements in the future.

CityNet Fund net position decreased by $0.9 million to $(17.9) million. This decline is primarily a result of operating expenses exceeding operating revenues. CityNet Enterprise made a valiant effort to cut expenditures and total operating expenses were $1.1 million lower than the previous year. Nevertheless, the enterprise’s financial deficit continued to grow and its borrowing from the General Fund has accumulated to $14.1 million.

The City’s external auditor, Maze and Associates, points out in MOIC that CityNet Enterprise fund advance balance and net deficit are material weaknesses. The auditors have commented on this issue since 2018. It is possible that, if CityNet is not able to turn its finances around and begin paying back the General Fund, the auditors will at some point no longer allow the General Fund to count the amount owed by CityNet as part of General Fund reserves. Without the advance to CityNet, the General Fund’s reserve balance would be $15.7 million as of June 30, 2021.

The City is reviewing whether implementing fiber to the homes (FTTH) would be a viable investment that, if made, could return CityNet to solvency and allow a payback of the General Fund loan over time. The investment for FTTH is approximately $12 million and would allow CityNet to offer more streaming and internet-based services to subscribers, thereby potentially increasing the customer base and the monthly subscriptions.

Pension Costs and Net Pension Liability
The City continues to experience significant impacts from increasing costs for retirement benefits through the CalPERS system. Employee retirement benefits totaled $10.6M in FY2020-21, which was a 9% increase, or $0.9M, over the prior fiscal year.

GASB 68 was first implemented in the City’s FY2014-15 financial statements and requires the City’s net pension liability (NPL) to be recognized on the Statement of Net Position. The net pension liability is the difference between the total pension liability (the present value of projected benefit payments to employees based on their past service) and the assets (mostly investments reported at fair value) set aside to pay benefits to current employees, retirees, and their beneficiaries. The NPL has increased from $94.8M in FY2019-20 to $102.5M in FY2020-

21. The table below lists the NPL for the Miscellaneous and Safety plans for fiscal years ending June 30, 2020 and 2021 and the year over year change. CalPERS provides the City with detailed actuarial reports that identify the NPL for financial reporting purposes and fluctuate based on the amount of projected benefit payments, employer and employee contributions, the discount rate, among other factors.

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0 Net Pension Liability Miscellaneous Safety Total
June 30, 2020 $45,902,570 48,942,165 $94,844,735
June 30, 2021 48,847,544 53,531,797 102,479,341
Change – Increase (Decrease) $3,044,974 $4,589,632 $7,634,606 Measure A and Measure W Funds Report
Maze & Associates completed the audit on the San Mateo County Measure A and Measure W Funds for Local Transportation Purposes and issued an opinion that all requirements of the funding were met for the fiscal year ending June 30, 2021.

The Measure A fund has $1.1M of assets at June 30, 2021. Total revenues of $1M were received in FY2021, and $2.4M was appropriated on a variety of transportation programs including the street rehabilitation program, street medians, traffic calming measures, sidewalk repairs and accessible pedestrian ramps, among other projects.

The Measure W fund has $0.5M of assets at June 30, 2021. Total revenue of $0.5M was received in FY2021 and $0.4M was spent on street rehabilitation projects.

FISCAL IMPACT:

There is no fiscal impact.

ENVIRONMENTAL IMPACT:

There is no environmental impact.

RECOMMENDATION:

Accept the City’s Annual Comprehensive Financial Report, the Measure A and W Fund Reports, and the Memorandum on Internal Controls and Required Communications for the Fiscal Year Ended June 30, 2021

ALTERNATIVES:

No alternative is offered.

ATTACHMENTS:

1. Resolution

2. Comprehensive Annual Financial Report for Fiscal Year Ending on June 30, 2021

3. Measure A Funds, Report on Compliance with the Agreement for Distribution of San Mateo County Measure A Funds for Local Transportation Purposes

4. Measure W Funds, Report on Compliance with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes

5. Memorandum of Internal Controls and other Communications (MOIC) 60 of 299
RESOLUTION NO. 2022 - ____
RESOLUTION ACCEPTING CITY’S COMPREHENSIVE ANNUAL FINANCIAL REPORT,

REPORT ON MEASURE A AND MEASURE W FUNDS, AND MEMORANDUM OF INTERNAL CONTROLS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
WHEREAS, the independent audit provides an annual report on the financial condition of the City in accordance with Municipal Code Section 2.28.030, and; WHEREAS, the City retained the firm of Maze & Associates to audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City for the fiscal year ended June 30, 2021; and WHEREAS, the audit was conducted in accordance with generally accepted auditing standards in the United States and standards applicable to financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the United States; and WHEREAS, the City applies all applicable Government Accounting Standards Board (GASB) pronouncements as well as the following pronouncements issued on or before November 30, 1989 to the business-type activities, unless those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) of the Committee of Accounting Procedure. The City applies all applicable FASB Statements and Interpretations issued after November 30, 1989, except those that conflict with or contradict GASB pronouncements; and
WHEREAS, the financial statements include the statement of net position, statement of activities and changes in net position, balance sheets, statements of revenues, expenditures, and changes in fund balances, and statements of cash flows; and WHEREAS, the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020 has been reviewed by the City Council; and WHEREAS, the Measure A and Measure W Funds, Report on Compliance with the Agreement for the Distribution of San Mateo County Measure A and Measure W Funds for Local Transportation Purposes for the fiscal year ended June 30, 2021 has been reviewed by the City Council; and WHEREAS, the Memorandum of Internal Controls and Other Communications (MOIC) has been reviewed by the City Council.

NOW THEREFORE, the City Council of the City of San Bruno hereby resolves to accept the following reports of the City’s independent auditors for the year ended June 30, 2021:

1. Comprehensive Annual Financial Report

2. Measure A Funds, Report on Compliance with the Agreement for the Distribution of San Mateo County Measure A Funds for Local Transportation Purposes

3. Measure W Funds, Report on Compliance with the Agreement for the Distribution of San Mateo County Measure W Funds for Local Transportation Purposes

4. Memorandum of Internal Controls and other Communications (MOIC) 61 of 299
2 1
3 0
---oOo---
I hereby certify that foregoing Resolution No. 2022 -
was introduced and adopted by the San Bruno City Council at a regular meeting on January 11, 2022, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_________________________________
Melissa Thurman, MMC
City Clerk
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City of San Bruno, California

Annual Comprehensive Financial Report
For the fiscal year ended June 30, 2021
(with comparative totals for the Fiscal Year Ended June 30, 2020)

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CITY OF SAN BRUNO, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2021

PREPARED BY:

FINANCE DEPARTMENT

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CITY OF SAN BRUNO, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021

Table of Contents

INTRODUCTORY SECTION

Letter of Transmittal ................................................................................................................................................... i

Organization Chart .................................................................................................................................................... iv

Directory of Officials ................................................................................................................................................. v

Certificate of Achievement ....................................................................................................................................... vi

FINANCIAL SECTION

Independent Auditor’s Report ................................................................................................................................. 1

Management’s Discussion and Analysis ................................................................................................................ 5

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................... .................... 25

Statement of Activities ........................................................................................................................... 26

Fund Financial Statements:

Balance Sheet – Governmental Funds ......................................................................................... ...... 30

Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position ...................................................................................... .............. 31

Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ....................................................................................................... .................. 32

Reconciliation of the Statement of Re venues, Expenditures and Change in Fund Balances of Governmental Fund s to the Statement of Activities ........................................ 33

Statement of Net Position – Proprietary Funds ..................................................................................... 36

Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds ......................... 38

Statement of Cash Fl ows – Proprietary Funds ...................................................................................... 40

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CITY OF SAN BRUNO, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021

Table of Contents

FINANCIAL SECTION (Continued)

Statement of Net Posi tion – Fiduciary Funds ........................................................................................ 44

Statement of Changes in Fiduciary Net Position – Fiduciary Funds .................................................... 45

Notes to Basic Financial Statements .......................................................................................... ................... 47

Required Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund ................................................................................................ 90

Schedule of Changes in the Net Pension Li ability and Related Ratios – Agent Multiple- Employer Defined Pension Plan ................................................................................................... 91

Schedule of Contributions – Agent Multiple-Employer Defined Pension Plan ................................ 92

Schedule of Changes in the City’s Proportionate Share of Net Pension Liability and Related Ratios – Cost Sharing Defined Benefit Pension Plan .................................................................. 93

Schedule of Contributions – Cost Sharing Defined Benefit Pension Plan ......................................... 94

Supplementary Information

General Fund Combining Balance Sheet .............................................................................................. 96

General Fund Combining Schedule of Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................................................................................ 97

General Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual .......................................................................................................................... 98

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Street Impr ovement Capital Project Fund ................................................. 100

Non-major Gove rnmental Funds:

Combining Balance Sheet ..................................................................................................... ............... 102

Combining Statement of Revenues, Expe nditures and Changes in Fund Balances ........................... 106

Combining Statement of Revenues, Expe nditures and Changes in Fund Balances – Budget and Actual ....................................................................................................................... 110

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CITY OF SAN BRUNO, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
Table of Contents
FINANCIAL SECTION (Continued)
Internal Service Funds:

Combining Statement of Net Position ........................................................................................................ 118 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................ 120 Combining Statement of Cash Flows ......................................................................................................... 122

STATISTICAL SECTION
Net Position by Component ........................................................................................................................ 127 Changes in Net Position .............................................................................................................................. 128 Fund Balances of Governmental Funds ................................................................................................ 130 Changes in Fund Balance of Governmental Funds .................................................................................... 131 Assessed Value and Estimated Actual Value of Taxable Property............................................................ 132 Direct and Overlapping Property Tax Rates ............................................................................................... 133 Principal Property Taxpayers ...................................................................................................................... 134 Schedule of Top 40 Business License Taxpayers ...................................................................................... 135 Property Tax Levies and Collection ............................................................................................................ 136 Ratios of Outstanding Debt by Type........................................................................................................... 137 Direct and Overlapping Governmental Activities Debt ............................................................................. 138 Legal Debt Margin Information .................................................................................................................. 139 Pledged Revenue Coverage ..................................................................................................... .................... 140 Demographic and Economic Statistics ....................................................................................................... 141 Principal Employers .......................................................................................................... .......................... 142 69 of 299

CITY OF SAN BRUNO, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
Table of Contents
STATISTICAL SECTION (Continued)
Full Time Equivalent City Employees by Function/Program .................................................................... 143 Operating Indicators by Function/Program ................................................................................................ 144 Capital Asset Statistics by Function/Program ............................................................................................ 145 70 of 299

INTRODUCTORY SECTION
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December 21, 2021

Honorable Mayor and Members of the City Council
City of San Bruno
San Bruno, CA 94066

Dear Mayor and Members of the City Council:

The Annual Comprehensive Financial Report (ACFR) for the City of San Bruno is submitted for the fiscal year ended June 30, 2021. The City compiles and assists in the preparation of the annual financial report covering the financial condition and results of operations for the City. Responsibility for the accuracy of the data and fairness of presentation, including all footnotes and disclosures, rests with the City.

City management has established an internal control framework designed to protect the City’s assets from loss, theft, or misuse and to compile necessary information for preparing the City’s financial statements in conformity with Generally Accepted Accounting Principles (GAAP). The City’s comprehensive framework of internal control has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. City management asserts that to the best of its knowledge this financial report is complete and reliable in all material respects.

The City’s financial statements have been audited by the certified public accounting firm of Maze & Associates. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial presentation. The independent audit provides reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2021 are free of material misstatements.

Maze & Associates concluded there is a reasonable basis for rendering an unmodified (“clean”) opinion that the City’s financial statements for the fiscal year ended June 30, 2021 are fairly presented in conformity with GAAP. The Independent Auditor’s Report is presented as the first component of the Financial Section of this report.

Management has provided a narrative introduction, overview, and analysis accompanying the basic financial statements in the Management’s Discussion and Analysis (MD&A). This letter of transmittal complements the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the Independent Auditor’s Report.

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City Profile

San Bruno is located on the San Francisco Peninsula in San Mateo County, approximately 12 miles south of San Francisco, and lies immediately adjacent to the San Francisco International Airport. The total land area of San Bruno is 5.5 square miles and serves a residential population of 44,936.

San Bruno is a general law city incorporated in 1914 that operates under the council-manager form of government. Policy-making and legislative authorities are vested in the City Council consisting of the mayor and four other members. City Council members are elected at large for staggered four-year terms, and the Mayor is elected for a two-year term. The governing council is responsible for passing ordinances, adopting the budget, appointing committees, and appointing the City Manager and City Attorney.

The City Manager is responsible for carrying out the policies and ordinances of the City Council, overseeing day-to-day operations, and appointing department directors. The City provides a full range of services including police, fire, public works services including streets, water, sewer, and stormwater, community services including parks maintenance, recreation, senior, and library services. The City’s CityNet enterprise provides cable television, internet, streaming services, and telephone services . General government activities include city administration, legal services, finance, human resources, and technology. The City employs 265 full-time equivalent positions.

The annual operating and capital budget serves as the foundation for the City’s financial planning and control. All departments and divisions are required to submit requests for appropriations to the City Manager.

These requests are used as the starting point for developing a proposed operating and capital budget. The City Manager and Finance Director then present the proposed budget for the City Council’s review. The City Council is required to hold a public hearing on the proposed budget and adopt a final budget no later than June 30, the last day of the fiscal year.

The City Council exercises budgetary control at the fund level. Quarterly financial reports are presented to the City Council to assess and evaluate budget variances during the year. Budget amendments requiring a change in appropriations require approval by the City Council and are submitted as needed during the course of the fiscal year.

Local Economy and Financial Overview

The City’s geographic location significantly impacts its economic position. The City is located at the intersection of three major interstate freeways (Highway 101, Interstate 380, and Interstate 280), making the City easily accessible from San Francisco to the north and from Silicon Valley to the south. The City also has Bay Area Rapid Transit (BART) and Caltrain stations located within its limits, making it readily accessible via public transportation. In addition, the San Francisco International Airport is immediately adjacent to the City making it a popular destination for business travelers and tourists.

This geography makes San Bruno a well-liked location for residents and businesses. Home prices continued to rise during COVID, while the commercial real estate market languished when many people worked from home. Consumer confidence and spending have been strong throughout the pandemic. The hospitality industry is recovering, indicating an improvement in transient occupancy taxes (TOT). Labor markets are tight and the unemployment rate has fallen to the level similar to pre-COVID. Wages are on the rise and supply chain disruptions have triggered rising global inflation. San Bruno’s local economy usually trends the macroeconomic development nationally and globally.

Financial Policies and Planning

The City’s long-term financial policies place an emphasis on sufficient reserves ensuring the City has adequate funds available to meet future needs. Through its prudent fiscal management and use of budgetary controls, the City has managed to grow its reserves during the past several years in compliance with the City Council adopted reserve policy. The City has a formal policy to limit the use of one-time/non-recurring 74 of 299
iii

revenues to balance the budget and directs these funds to reserves whenever feasible. For fiscal year 2020-21, major budget reductions were needed to keep the budget in balance due to the COVID pandemic. Some budget reductions were restored in FY 2021-22 with funding from the American Rescue Plan Act. When more Americans get vaccinated and the overall economy improves, the City’s financial status will follow suit.

Every year, the City develops a five-year Capital Improvement Program (CIP) plan detailing specific budgeted capital projects. Each of the projects are consistent with the overall goals and principles of the City Council. Numerous capital projects were in process or completed during the fiscal year improving the City’s facilities, parks, stormwater drainage, water and wastewater infrastructure, and maintenance of streets.

Awards

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for the ACFR for the fiscal year ended June 30, 2020. The Certificate of Achievement is a national award recognizing conformance with the highest standards for preparation of state and local government financial reports. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. The report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements.

Acknowledgments

I would like to express my appreciation for the collective effort that was required for the preparation of this Annual Comprehensive Financial Report. I would like to thank the City Council for its interest and policy oversight on the various fiscal issues addressed during the year. In addition, the City Manager’s Office and the City’s Department Directors should be acknowledged for their continued attention to planning and conducting the City financial and procurement operations in a responsible and progressive manner. I would also like to thank the dedicated members of the Finance Department who worked diligently to support all aspects of this audit and on-going operations and projects of the City. Finally, I thank Maze & Associates for their assistance in conducting the audit.

Respectfully submitted,

Qianyu Sun
Finance Director
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CITY OF SAN BRUNO ORGANIZATION CHART
Citizens of San Bruno
Mayor/City Council
City Manager City Attorney
Fire Chief
Public Works
DirectorFinance Director
Chief of Police
Assistant City
Manager
CityNet Services
Director
Community
Services Director
Community &
Economic
Development
Director
Boards &
Commissions
City Clerk
iv
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Directory of Officials

Elected Officials
Rico E. Medina Mayor
Marty Medina Vice Mayor
Linda Mason Council Member
Tom Hamilton Council Member
Michael Salazar Council Member

Administrative Personnel

Jovan D. Grogan City Manager
Jennifer Brizel Assistant City Manager
Marc Zafferano City Attorney
Qianyu Sun Finance Director
Pamela Wu Community & Economic Development Director Ann Mottola Community Services Director
Ari Delay Fire Chief
Ryan Johansen Police Chief
Vacant Public Works Director
Sandeep Krishnamurthy CityNet Services Director
Melissa Thurman City Clerk

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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Bruno
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
vi
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FINANCIAL SECTION

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INDEPENDENT AUDITORS' REPORT

To the Honorable Members of the City Council
City of San Bruno, California

Report on the Financial Statements

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 San Bruno, California, as of and for the years ended June 30, 2021, and the related notes to th e financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing stan dards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair pr esentation of the financial statements 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, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used a nd the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Opinions

In our opinion, the financial statements referred to above present fairly, in all mate rial 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, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with acc ounting principles generally accepted in the United States of America.

Change in Accounting Principles

Management adopted the provisions of Governmental Accounting Standards Board Statement No. 84 – Fiduciary Activities, which became effective during the year ended June 30, 2021 and established the new fund type, Custodial Funds, and eliminated the fund type of Agency Funds as discussed in Note 1 to the financial statements.

Management early adopted the provisions of Governmental Accounting Standards Board Statement No. 98 – The Annual Comprehensive Financial Report which changes the name of the Comprehensive Annual Financial Report to Annual Comprehensive Financial Report.

Emphasis of a Matter

CityNet Services Enterprise Fund – Operating Loss and Deficit Net Position

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of American, which contemplate the continuation of the City as a going concern. The CityNet Services Enterprise Fund has an operating loss of $906,808 and a deficit net position of $17,878,960 for the year ending June 30, 2021. The CityNet Services fund has interfund balances due to negative cash in the amount of $14,091,008. If deficit spending continues in the CityNet Services fund and it continues to borrow from the General Fund, it reduces the likelihood that the CityNet Services fund will be able to continue as a going concern.

The emphasis of this matter does not constitute a modification to our opinions.

Report on Summarized Comparative Information

We have previously audited the City’s June 30, 2021 financial statements, an d we expressed an unmodified audit opinion on those audited financial statements in our report dated January 15, 2021. In our opinion, the summarized comparative information presented herein as of and for th e year ended June 30, 2021 is consistent, in all material respects, with the audited financial statements from which it has been derived.

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O
ther Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplemen tary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Ac counting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary in formation 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 information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obt ained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other 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 Introductory Section, Supplementary Information, and Statistical Section listed in the Table of Contents are pres ented for purposes of addi tional analysis and are not a required part of the basic financial statements.

The Supplementary 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. Such information has been subjected to the auditing procedures ap plied in the audit of the basic financ ial statements and certain additional procedures, including comparing and reconciling such information directly to the unde rlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated December 21, 2021 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations , contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on in ternal 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.

Pleasant Hill, California
December 21, 2021
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MANAGEMENT’S DISCUSSION AND ANALYSIS
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CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

The Management’s Discussion and Analysis (MD&A) provides an overview of the City of San Bruno’s activities for the fiscal year ended June 30, 2021.

The intent of this discussion and an alysis is to present a full picture of the City’s financial performance. Readers should review the discussion and analysis in conjunction with the basic financial statements, as well as the notes to the financial statements to enhance their overall understanding.

Financial Highlights for Fiscal Year 2020-21
Entity-wide:
 The City’s assets and deferred outflow of resources exceeded its liabilities an d deferred inflow of resources at June 30, 2021 by $161.8 million (net position). The City’s net position increased $14.9 million, or 10.2%, from the previous fiscal year.
 The City’s governmental activities program and general revenues of $63.6 million exceeded expenses of $58.3 million by $5.4 million. Afte r transfers to other funds of $0.2 million, governmental net position increased by $5.2 million to $41.5 million.
 The City’s business-type activities program revenu es and general revenues from the four enterprise operations of $46.4 million were greater than expenses of $36.9 million by $9.5 million. After transfers in from other funds of $0.2 million, business-type ac tivities net position increased by $9.7 million to $120.3 million.

Fund level:
 At the close of the fiscal year, the City’s governmental funds reported combined fund balances of $58.1 million, an increase of $8.7 million compared to the prior year. Of this amount, $14.4 million, is
nonspendable, $22.8 million is restricted, $30.4 million is assigned, and $(9.5) million is unassigned.  Revenues for governmental funds exceeded expenditures by $9.0 million. Tax revenue grew $7.6 million, or 25.3%, from the prior year. Expenditures for go vernmental funds decreased $1.7 million, or 3.1%, from the prior year mainly due to reduced capital outlay spending.

Detailed analysis can be found under the Government-wide Financial Analysis Section and Financial Analysis of the City’s Funds Section
Overview of Financial Statements
This discussion and analysis serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financ ial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements.

Government-wide financial statements are designed to provide readers a br oad overview of the City finances

in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the City ’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the di fference between the two reported as net position. Over time, increases or decreases in net position may serve as an indicator of whether the financial position of the City is improving or deteriorating.
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CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

The Statement of Activities presents info rmation showing how the City’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenu es (governmental activities) from other functions that are intended to recover all or a significant portion of their costs thr ough user fees and charges (business-type activities). The governmental activities of the City consist of general government, public safety, public works, streets, parks and recreation, library and community and economic development. The business-t ype activities of the City include water, stormwater, wastewater, and cable television.

The government-wide financial statements can be found on pages 25 and 26 of this report.

Fund financial statements. A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financ ial statements. Unlike government-wide financial statements, governmental fund financial statements fo cus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for govern mental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains nineteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, which is considered to be a major fund. Data from the other governmental funds are combined into a single, aggregated present ation. Individual fund data for each of these non-major governmental funds are provided in the form of combined statements in the Supplementary Information section of this report.

The City adopts an annual appropriated budget for its general fund and most governmental funds. A budgetary comparison statement has been provided for all majo r and non-major funds (with adopted budgets) in governmental activities to demonstrate compliance with this budget.

The governmental fund financial statements can be found on page 30 of this report.

Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for water, stormwater, wastewater, and CityNet services. CityNet is a municipally owned and operated enterprise for cable television, internet and other services. 7 87 of 299

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The
City uses internal service funds to account for its central garage, self-insurance, technology development, and facilities maintenance activities. B ecause these services predominantly benefit governmental rather than business-type functions, it has been include d within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, but in more detail. The proprietary fund financial statements provid e separate information for all of the City’s proprietary funds as they are all considered to be major funds by the City. Conversely, the internal service fund is combined into a single, aggregated presentation in the proprietary financial statements. More detailed information for the internal service funds is provided in the form of combined statements elsewhere in the report.

The proprietary fund financial statements can be found on page 36 of this report.

Fiduciary funds. Trust and custodial funds are fiduciary funds that account for assets held by the City in a purely custodial capacity. The reporting entity includes the Recology San Bruno Custodial Fund to account for funds billed, collected, and remitted to the company for waste management services within the City. In addition to the custodial fund, the Successor Agency to the San Bruno Redevelopment Agency Trust Fund was created as a result of the California Supreme Court decision on Decembe r 29, 2011 upholding ABx1 26, which eliminated all redevelopment agencies in California and created a process for winding down their operations. Both funds report a ”balance sheet” referred to as a statement of fiduciary net position and an “income statement” referred to as a statement of changes in fiduciary net position.

The fiduciary fund financial statements can be found on page 44 of this report.

Notes to the Basic Financial Statements. The notes provide additional information essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found starting on page 47 of this report.

Required and Other Information. In addition to the basic financial st atements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pensi on benefits to its employees. Required s upplementary information can be found on page 90 of this report.

The combining statements referred to earlier in connec tion with non-major governmental funds and internal service and fiduciary funds are presented immediately following the required supplementary information.

Combining and individual fund statements and schedules can be found on page 96 of this report. 8 88 of 299

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. Assets and deferred outflows exceeded liabilities and deferred inflows by $161.8 million at the close of fiscal year 2020-21.

By far the largest portion of the City’s net position reflects its investment in capital assets (e.g. land, infrastructure, buildings, machinery, equipment, and vehicles) less any rela ted debt used to acquire those assets that are still outstanding. The City uses these capital assets ($127.6 million) to provide services to its citizens. Consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets cannot be used to liquidate these liabilities.

An additional portion of the City’s net position ($26.9 million) represents re sources that are subject to external restrictions on how the funds may be used, such as constr ucting specified capital projects, debt service, or other community programs. The remaining balance in unrestricted net position amounts to $7.3 million. This amount may be used at the City’s discretion to meet ongoing obligations to citizens and creditors. 2021 2020 2021 2020 2021 2020
Current assets 72,767,674 $ 56,825,673 $ 80,520,946 $ 77,706,210 $ 153,288,620 $ 134,531,883 $ Capital assets, net 69,544,443 70,520,860 105,046,800 101,999,056 174,591,243 172,519,916 Total assets 142,312,117 127,346,533 185,567,746 179,705,266 327,879,863 307,051,799 Deferred outflows of resources 16,656,156 15,162,787 2,270,964 1,907,290 18,927,120 17,070,077 Current liabilities 15,582,710 10,233,615 6,567,338 8,759,572 22,150,048 18,993,187 Noncurrent liabilities 99,502,943 92,473,665 60,927,054 61,961,827 160,429,997 154,435,492 Total liabilities 115,085,653 102,707,280 67,494,392 70,721,399 182,580,045 173,428,679 Deferred inflows of resources 2,389,141 3,480,503 - 287,190
2,389,141 3,767,693
Net Position
Net investment in capital assets 68,788,202 69,271,484 58,800,601 53,787,761 127,588,803 123,059,245 Restricted 22,782,488 22,102,576 4,123,199 15,720,390 26,905,687 37,822,966 Unrestricted (
50,077,211) (55,052,523) 57,420,518 41,095,816 7,343,307 (13,956,707) Total net position 41,493,479$ 36,321,537$ 120,344,318$ 110,603,967$ 161,837,797$ 146,925,504$ Statement of Net Position
G over nmental Business-T ype
Activities Activities Totals
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CITY OF SAN BRUNO, CALIFORNIA

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

The City’s overall net position increased by $14.9 million, or 10.2%, from the prior fiscal year. Key elements of these changes are as follows:

2021 2020 2021 2020 2021 2020
Revenues:

Program revenues:

Charge for services 10,585,312$ 10,039,023$ 45,921,393$ 45,121,825$ 56,506,705$ 55,160,848$ Operating grants and contributions 3,022,800 2,231,014 - - 3,022,800 2,231,014 Capital grants and contributions 7,808,476 7,735,245 - - 7,808,476 7,735,245 General revenues:

Property taxes 12,618,447 12,212,891 - - 12,618,447 12,212,891 Transient occupancy taxes 1,247,467 2,617,524 - - 1,247,467 2,617,524 Franchise taxes 1,798,673 1,861,256 - - 1,798,673 1,861,256 Sales taxes 17,780,042 9,281,920 - - 17,780,042 9,281,920 Cardroom taxes 2,035,009 1,974,980 - - 2,035,009 1,974,980 Other taxes 2,045,462 1,972,392 - - 2,045,462 1,972,392 State motor vehicle in-lieu tax 3,180,581 5,013,326 - - 3,180,581 5,013,326 State gasoline tax 1,852,026 1,844,231 - - 1,852,026 1,844,231 Use of money and property (341,249) 2,130,318 498,412 1,413,655 157,163 3,543,973 Total revenues 63,633,046 58,914,120 46,419,805 46,535,480 110,052,851 105,449,600 Expenses:

General government 8,441,787 9,606,933 - - 8,441,787 9,606,933 Public safety 32,515,036 31,788,329 - - 32,515,036 31,788,329 Public works 3,131,204 1,566,728 - - 3,131,204 1,566,728 Streets 4,081,082 4,224,797 - - 4,081,082 4,224,797 Parks and recreation 4,814,770 5,817,710 - - 4,814,770 5,817,710 Library 2,298,623 2,458,480 - - 2,298,623 2,458,480 Community and economic
development 2,652,300 3,057,191 - - 2,652,300 3,057,191 Interest expense 324,944 373,262 - - 324,944 373,262 Water - - 12,697,845 12,137,204 12,697,845 12,137,204 Stormwater - - 1,375,960 2,287,138 1,375,960 2,287,138 Wastewater - - 12,879,291 12,926,033 12,879,291 12,926,033 CityNet - - 9,927,716 11,053,095 9,927,716 11,053,095 Total expenses 58,259,746 58,893,430 36,880,812 38,403,470 95,140,558 97,296,900 Increase (decrease) in net position
before transfers 5,373,300 20,690 9,538,993 8,132,010 14,912,293 8,152,700 Transfers (201,358) (1,269,703) 201,358 1,269,703 - - Increase (decrease) in net position 5,171,942 (1,249,013) 9,740,351 9,401,713 14,912,293 8,152,700 Net position - beginning 36,321,537 37,570,550 110,603,967 101,202,254 146,925,504 138,772,804 Net position - ending 41,493,479$ 36,321,537$ 120,344,318$ 110,603,967$ 161,837,797$ 146,925,504$ Statement of Activities
Governmental Business-Type
Activities Activities Totals

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CITY OF SAN BRUNO, CALIFORNIA

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

Governmental Activities

Governmental activities increased the City’s net position by $5.2 million, with a total net position of $41.5 million at the end of the fiscal year. Overal l, revenues increased by $4.7 million to $63.6 million over the prior year.

Robust sales tax revenues mitigated decreases in other tax categories like transient occupancy tax and State motor vehicle license in-lieu revenues. Sale s tax grew by $8.5 million, 91.6%, af ter the City entered into a Revenue Participation Agreement with a major taxpayer in October 2020. In add ition, the City report ed a full year of Measure G transaction and use tax revenue. Measure G was approved on November 3, 2019 and became effective on April 1, 2020. The City’s second largest tax category, property taxes, increased by $0.4 million, 3.13%, while State revenues from motor vehicle in-lieu tax decreased by $1.8 million, 36.6%. The reduction in the number of non-basic aid school districts in San Mateo County resulted in less available property tax revenues to fund the vehicle license fee revenue. Transient occupancy taxes decreased by $1.4 million, 52.3%, as leisure and business travel continued to contract as a result of the ongoing COVID-19 pandemic. Operating grants and contributions increased $0.8 million, 35.5%, mainly due to receipt of federal funds rela ted to COVID-19 and responding to mutual aid events during fire season. Expenses decreased $0.6 million, 1. 1%, after the City cut expenditures judiciously on concerns over the pandemic.

The cost of all governmental activities this year was $5 8.3 million. As shown in th e statement of activities, the amount that taxpayers paid for these activities with general revenues was $42.2 million because some of the costs were paid by those specifically benefiting from the programs ($10.6 million), by other governments and organizations subsidizing programs with grants, and contributions ($10.8 million) for operations and capital improvement.

11 91 of 299

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

The City’s programs include general government, public safety, public works, streets, parks and recreation, library, and community and economic development. Each program’s net cost (total cost less revenues generated by the activities) is presented below. The net cost sh ows the financial burden that was placed on the City’s taxpayers by each of these functions.

Operating resources (program revenues) and operating expenses are depicted graphically as follows:
2021 2020 2021 2020 2021 2020
Gove rnme ntal activitie s:

General government 10,895,714 $ 4,274,900 $ 8,441,787 $ 9,606,933 $ 2,453,927 $ (5,332,033) $ Public safety 3,241,085 2,911,875 32,515,036 31,788,329 (29,273,951) (28,876,454) Public works 808,585 525,924 3,131,204 1,566,728 (2,322,619) (1,040,804) Streets 803,462 1,365,190 4,081,082 4,224,797 (3,277,620) (2,859,607) Parks & recreation 2,695,724 4,616,011 4,814,770 5,817,710 (2,119,046) (1,201,699) Library 49,853 79,395 2,298,623 2,458,480 (2,248,770) (2,379,085) Community & economic development 2,922,165 6,231,987 2,652,300 3,057,191 269,865 3,174,796 Interest expense - -
324,944 373,262 (324,944) (373,262) Total governmental activities 21,416,588$ 20,005,282$ 58,259,746$ 58,893,430$ (36,843,158)$ (38,888,148)$ Net Revenue (Expense)
and Change
Oper a ting Revenues Oper a ting Expenses in Net Position 12 92 of 299

CITY OF SAN BRUNO, CALIFORNIA

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

Business-type Activities

The City’s business-type activities include water, st ormwater, wastewater, and CityNet. While water and wastewater are true enterprise funds that pay for their services through us er fees, both stormwater and CityNet require funding from the General Fund, as user fees do not cover all operating or capital costs. The results for the current fiscal year were positive in that overall net position increased to reach an ending balance of $120.3 million.

The total increase in net position for business-type activities was $9.7 million. The Water and Wastewater Funds directly contributed to the growth because of an annual 5% rate increase to maintain utility infrastructure. Charges for services of $17.8 million and $18.5 million covered expenses of $12.7 million and $12.9 million, respectively.

Stormwater charges for services of $0.7 million continued to be insufficient to support expenses of $1.4 million.

CityNet charges for services of $9.0 million also continued to be insufficient to support expenses of $9.9 million.

Total resources available during the year to finance bus iness-type activities were $46.6 million consisting of program revenues, investment income, and transfers. Total business-type activities expenses during the year were $36.9 million.

Operating revenues and expenses are depicted graphically as follows:

13 93 of 299

CITY OF SAN BRUNO, CALIFORNIA

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

Each program’s net cost (total cost less revenues genera ted by the activities) is pres ented below. The net cost shows the financial burden placed on City’s taxpayers by each of these functions.

Financial Analysis of the City’s Funds

Governmental Funds:

The City uses fund accounting, which focuses on current financial resources affecting near-term liquidity. It is also a management tool for segregating certain resources for specific activities or objectives in accordance with special regulations, restrictions, or limitations.

At June 30, 2021, governmental funds reported combined fund balances of $58.1 million, an increase of $8.7 million, 3.7%, over the prior year. Of this amount, $14.4 million is non-spendable as the funds were advanced to CityNet services for the Shelter Creek Fiber to the Home project, $0.3 million, and for the negative cash balance in the fund, $14.1 million. The City is developing a plan to reduce the net operating loss and repay the General Fund the balance due. The remainder of the fund balance is either restricted, assigned, or unassigned to indicate that it is (1) restricted for particular purposes, $22.8 million; or (2) assigned for particular purposes, $30.4 million; or (3) unassigned and available at the City’s discretion, $(9.5) million.

Analysis of Major Funds

The General Fund is the main operating fund of the City. For financial statement presentation purposes, the General Fund includes the operating fund, reserve funds, Measure G fund, American Rescue Plan Act fund, and Developer Project Contributions fund. Revenues totaled $56.2 million, which is an increase of $9.9 million,

21.3%, from the prior year. This was mainly due to gr owth from sales tax, property tax, licenses and permit revenue, and receipt of community benefit funds from YouTube and G.W. Williams. Expenditures totaled $48.2 million, which decreased slightly by $0.2 million, 0.5%, from the prior year. The decline can be attributed to unspent consultant services that will be carried over to next fiscal year and sala ry savings from the Community and Economic Development Department and unspent oper ating supplies and salary savings from the Streets Division. At the end of the fiscal year, total fund balance increased by $8.0 million to $35.4 million.

The Street Improvement Capital Project s Fund provides for the rehabilitation of the City’s streets, sidewalks, streetlights, traffic signals, and street medians. While expenditures of $1.5 million were the same as the prior year, grant revenues totaled $0.7 million, which is a de crease of $0.6 million, -44.8%, from the prior year. The main funding source is transfers from other funds of $5.0 million. At the end of the fiscal year, total fund balance increased by $3.3 million because transfers in exceeded transfers out by $4.1 million, which offset expenditures exceeding revenue of $0.8 million. Transfers in from various transporta tion, streets, and road improvement funding sources were made for numerous projects in cluding: Pedestrian Safety and Traffic Calming Improvements at San Bruno Avenue and Cherry Avenue, $1.1 million, 20-21 St reet Rehabilitation Project, $1.7 million, and Streetlight Pole Replacement Program, $0.4 million. 2021 2020 2021 2020 2021 2020
Business-type activities:

Water 17,777,900 $ 16,936,737 $ 12,697,845 $ 12,137,204 $ 5,080,055 $ 4,799,533 $ Stormwater 655,608 650,555 1,375,960 2,287,138 (720,352) (1,636,583) Wastewater 18,470,837 18,230,960 12,879,291 12,926,033 5,591,546 5,304,927 CityNet 9,017,048 9,303,573 9,927,716 11,053,095 (910,668) (1,749,522) Total business-type activities 45,921,393$ 45,121,825 $ 36,880,812 $ 38,403,470 $ 9,040,581 $ 6,718,355 $ Net (Expense)
and Change
Operating Revenues Operating Expenses in Net Position
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CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
Proprietary F
unds:

The City’s proprietary funds provides the same type of information found in the business-type activities portion of the government-wide financial statements, but in more detail.

Water Fund net position increased by $5.4 million to $65.3 million as a result of planned rate increases approved by City Council in 2017, which will be used to implement a number of critical infrastructure improvement projects in the coming years. A five-year rate plan was established and provides for annual 5% rate increases through June 30, 2022. To lessen the financial burden on residents in the era of COVID-19, the City Council decided not to increase the water rate in FY 2021-22.

Wastewater Fund net position increased by $5.9 milli on to $66.4 million as a result of planned rate increases approved by City Council in 2017, wh ich will be used to implement a number of critical infrastructure improvement projects in the coming years. A five-year rate plan was established and provides for annual 5% rate increases through June 30, 2022. To lessen the financial burden on residents in the era of COVID-19, the City Council decided not to increase the wastewater rate in FY 2021-22.

Stormwater Fund net position decreased by $0.6 mill ion to $5.0 million due to operating expenses exceeding revenues and transfers in. The long-range financial forecast, without any additional dedicated revenue to support the enterprise, is projected to yield a negative fund balance beginning in FY2021-22 with the negative fund balance each year thereafter. The few stormwater system capital improvement projects are projected to be funded through General Fund reserves due to the lack of dedicated stormwater fees. The City held a mail ballot property- owner election to increase Storm Drainage and Flood Protection Fee on June 15, 2021. The initiative was rejected by voters overwhelmingly and the City is exploring alternative options to address much needed stormwater system improvements.

CityNet Fund net position decreased by $0.9 million to $(17.9) million. This decline is primarily a result of operating expenses exceeding operating revenues. Depreciation expense of $0.4 million and the impact of reflecting the GASB 68 pension expense in the fund of $0.1 million also contributed to the net position decrease.

With the adoption and implementation of the new, internet focused business plan in 2019, accompanied by a new rate structure and continuously impl emented vendor cost controls, progress has been made annually in reducing the net operating loss since 2018. As long as the enterprise remains in a financial deficit position, the impact falls on the City’s General Fund to backfill the CityNet Fund shortfall.

General Fund Budgetary Highlights
The budget comparison information presented on page 90, as Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual shows the initial adopted and final budgets for the General Fund. In this financial statement, the General Fund is comprised of the General Operating fund, reserve funds, Measure G fund, American Rescue Plan Act fund, and Developer Project Contributions fund. 15 95 of 299

CITY OF SAN BRUNO, CALIFORNIA

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

Original Budget Compared to Final Budget:

The City was hit hard by the pandemic recession during FY 2020-21. Due to economic uncertainty, the original budget was modified significantly during the year.

The most significant differences between original and final revenue estimates were as follows:

Revenues Orig Budget Final Budget Variance Percent
Change
Sales Tax $6,333,926 $9,333,926 $3,000,000 47.4%
Transient Occupancy Tax 2,125,467 950,000 (1,175,467) -55.3% Subtotal - Significant Tax Source 8,459,393 10,283,926 1,824,533 21.6% Licenses and permits 4,267,477 4,942,887 675,410 15.8%
Intergovernmental 5,134,141 4,621,728 (512,413) -10.0%
Charges for services 2,818,072 1,909,176 (908,896) -32.3% Other revenues 4,840,318 9,315,355 4,475,037 92.5%

Sales tax revenue estimates were increased to $3.0 million, 47.4%, to account for the receipts from the Revenue Participation Agreement with a majo r vendor. Transient Occupancy tax estimates were revised down by $1.2 million, -55.3%, to account for the projected drop off in leisure and business travel. Licenses and permits estimate increased by $0.7 million, 15.8%, to account for additional receipts from encroachment permits, plan check fees, and business license permit revenues. Intergovernmenta l revenue estimates decreased by $0.5 million, -10.0%.

The reduction in the number of non- basic aid school districts in San Ma teo County resulted in less available property tax revenues to fund the vehicle license fee re venue. Charges for services estimates decreased by $0.9 million, -32.3%, as a result of extende d closure of recreation and senior pr ograms. Other revenues estimates increased by $4.5 million, 92.5%, to account for receipt of community benefit funds from YouTube.

The most significant differences between original and final expenditure budgets were as follows:

Expenditures Orig Budget Final Budget Variance Percent
Change
General government $6,171,897 $6,851,656 $679,759 11.0% Public works 1,252,093 1,537,934 285,841 22.8%
Parks and recreation 6,008,640 4,783,934 (1,224,706) -20.4% Library 2,070,741 1,942,291 (128,450) -6.2%
Community and economic
development 2,506,727 3,057,510 550,783 22.0%
Capital outlay 355,735 848,615 492,880 138.6%

General government appropriations increased by $0.7 million, 11%, to account for federal Coronavirus Relief Funds utilized for necessary expenditures incurred due to the COVID-19 public health emergency and consultant services to support various City initiatives. Public Works appropri ations and Community and Economic Development appropriations had combined increases of $0.8 million, 22.3%, for additional staff support and consultant services to support various City initiatives . Parks, Recreation, and Library Services Divisions appropriations had combined decreases of $1.4 million, -16.7%, to account for extended program closures.

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CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
Final Budget Compared to Actual Results:

The most significant differences between estimated and actual revenues were as follows:

Revenues Final Budget Actual
Revenues Variance Percent
Change
Sales Tax $12,244,943 $16,176,868 $3,931,925 32.1%
Property Tax 11,131,981 11,292,918 160,937 1.4%
Transient Occupancy Tax 950,000 1,247,467 297,467 31.3% Subtotal - Significant Tax Source 24,326,924 28,717,253 4,390,329 18.0% Charges for services 1,909,176 2,093,216 184,040 9.6%
Fines and forfeitures 1,049,200 722,685 (326,515) -31.1% Other revenues 9,315,355 9,964,869 649,514 7.0%
Tax revenues saw increases in sales tax, property tax, and transient occupancy tax.

The largest increase came
from sales tax because the City received additional sales tax revenue by entering into a Revenue Participation Agreement with a major taxpayer in Oc tober 2020. In addition, the City repor ted a full year of Measure G half- cent transactions and use tax. By fiscal year end, sales tax revenue came in $3.9 million, 32.1%, over budget.

Property tax increased modestly and came in $0.2 milli on, 1.4%, over budget due to increased property values.

Although transient occupancy tax came in $0.3 million, 31.3% , over budget, it was still significantly lower compared with receipts prior to the COVID-19 pandemic. The charges for services category are made up of various program revenues primarily from the Police Department and Recreation Services Division. By fiscal year end, charges for services came in close to $0.2 millio n, 9.6%, more than estimated. The final budget was a conservative estimate due to programming uncertainty during the COVID-19 pandemic. Fines and forfeitures came in $0.3 million, 31.1%, below budge t as a result of a decrease in police and parking fine collections. The other revenues category exceeded the budget by $0.6 million, 7%, because the City recorded additional overhead revenue from capital improvement program projects, Mills Park community benefit funds from G.W. Williams, and San Bruno Community Foundation reimbursement for a mobile command vehicle.

The most significant differences between the final budget and actual expenditures were as follows:

Expenditures Final Budget Actual
Expenditures Variance Percent
Change
Streets $2,028,381 $1,570,931 $457,450 22.6%
Community and economic
development 3,057,510 2,516,995 540,515 17.7%
The challenges that arose from the start of the COVID-19 pandemic continued into FY2020-21. Consistent with prior years’ practice and the City Council’s on-going budget policy, the budget reflects efforts across all departments and operating programs to control and contain costs at the lo west responsible levels to allow uninterrupted service delivery. As a result, total expe nditures were $48.2 million, ab out $1.6 million, or 3% under budget. Streets Division expenditures were $0.5 million, 22.6%, belo w budget due to salary savings from
vacant positions and savings in street light and traffic signal supplies, othe r operating supplies, and contractual services. Community and Economic Development Depa rtment expenditures were $0 .5 million, 17.7%, below budget due to salary savings from vacant positions and unspent professional services funds which will be carried over to next fiscal year.
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CITY OF SAN BRUNO, CALIFORNIA

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021

Cash Management

The City employs a pooled cash system (Reference Note 2 in the notes to the basic financial statements). To maintain flexibility in cash management under the pooled cash concept, the City invests the cash of all funds with maturities planned to coincide with cash needs. Idle cash is invested in el igible securities as defined by the California Government Code and further authorized by the City's Investment Policy. The goals of the City's Investment Policy are safety, liquidity, and yield in that order of priority.

Capital Assets

The capital assets of the City are those assets used in the performance of the City’s functions including infrastructure assets. At June 30, 2021, net capital asse ts of the governmental activities totaled $69.5 million.

Depreciation on capital assets is recognized in the gove rnment-wide financial statements. During the 2020-21 fiscal year, net capital assets for governmental activities decreased by $1.0 million due to depreciation in excess of additions. For business-type activities, capital asse ts increased by $3.0 millio n to $105.0 million due to additions in excess of depreciation. Detailed informati on about capital assets can be found in Note 4 to the financial statements.

2021 2020 2021 2020 2021 2020
Land 4,649,235 $ 4,649,235 $ 576,842 $ 576,842 $ 5,226,077 $ 5,226,077 $ Construction in Progress 7,964,654 5,429,970 12,334,468 12,827,848 20,299,122 18,257,818 Infrastructure 45,291,885 47,702,507 - - 45,291,885 47,702,507 Sewer Plant - - 12,170,648 11,845,873 12,170,648 11,845,873 Buildings & Structures 6,897,115 7,412,166 72,854,125 68,474,433 79,751,240 75,886,599 Machinery & Equipment 4,741,554 5,326,982 7,110,717 8,274,060 11,852,271 13,601,042 Total 69,544,443$ 70,520,860$ 105,046,800$ 101,999,056$ 174,591,243$ 172,519,916$ G over nmental Business-Type
Activities Activities Totals
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CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
Debt Administration
The City and Successor Agency to the Former Redevelopment Agency debt obligations are in the form of capital leases, pension obligation bond, loans payable to South San Francisco, and revenue bonds. A summary of the City’s outstanding debt follows:

Additional information about long-term debt can be found in Note 5 to the financial statements.

Economic Factors and Next Year’s Budgets and Rates
The City Council and management consid ered the following economic factors in preparation of the fiscal year 2021-22 budget:

General Fund revenues
 Total General Fund revenues of $49.8 million projected for FY2021-22 are flat compared to the FY2020-21 Amended Budget amounts.
 Property Taxes - Compared to other cities throughout California, San Bruno receives a relatively low amount of the total property tax collected in the City. San Bruno only receives about 12 1/2 cents from every property tax dollar paid in San Bruno. An additional 2 cents of property tax revenue have come to the City in rece nt
years from the Educational Revenue Augmentation Fund, or ERAF, but this is not a consistent or reliabl e revenue source to fund on-going operations in the long term. The remainder of property taxes paid by property owners in the City goes to San Mateo County, school districts, and special districts. The housing industry and home sales boomed when more and more people worked from home because of Coronavirus and stay-at- home directives. Property Tax revenue is expected to show a slight increase of about 3% over the prior fiscal year budget primarily due to higher property reassessment anticipated to occur. 2021 2020
Governmental Activities
2017 Capital Lease Obligation 90,522$ 269,032$ 2018 Capital Lease Obligation 665,719 980,344
2013 Pension Obligation Bond 6,062,892 6,948,374
Subtotal Governmental Activities Debt 6,819,133 8,197,750 Business-Type Activities
Due to South San Francisco - 1997 Loan 1,134,660 1,680,517 Due to South San Francisco - 2007 Loan 2,129,976 2,525,314 2013 Wastewater Revenue Refunding Bond 5,184,508 5,512,383 2017 Wastewater Revenue Bond 25,693,415 26,235,949 2017 Water Revenue Bond 12,191,979 12,448,534
Subtotal Business-Type Activities Debt 46,334,538 48,402,697 Fiduciary Activitie s
2019 Lease Revenue Bonds 4,579,220 4,956,642
Subtotal Fiduciary Activities Debt 4,579,220 4,956,642 Total Long-Term Debt Obligations 57,732,891$ 61,557,089$ Summary of
Long-Term Debt
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CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
 Sales Tax of 9.75% is assessed on every taxable sale in San Bruno. Of the 9.75%, the City receives 1.5% or about 15% of the total tax. For FY2021-22 total Sale s Tax revenue is anticipated to increase by 13% from the prior year’s receipts. One of the contributing factors to the increase is that the City will collect a full year worth of sales tax according to a Revenue Participatio n Agreement for the first time. Additionally, more businesses will gradually return to normal operations a nd lead to sales recovery. One negative factor to the sales tax is the pending sale of Tanforan Mall. At this time, staff is not able to accurately assess the potential impact of the pending sale. Therefore, the sales tax projection for FY 2021-22 will be updated when more information becomes available.
 Transient Occupancy Tax (TOT) in the amount of 14% is collected on the cost of each room rental at each of the 12 lodging establishments in the City. COVID-19 will continue to have an impact on hotel operators in San Bruno and across the state. Occupancy declined more than 75% during th e pandemic. Significant business travel reductions will have long-lasting implications for TOT revenue for years to come. Staff are projecting a recovery of 82% in TOT
revenue in FY2021-22 to $1.7 million for the year. However, compared with pre-COVID era, TOT will be significantly lower for some time.  Business license tax is an annual tax based on prior year gross receipts. The pandemic devastated many sectors of San Bruno’s business community and in most cases gross receipts are flat.  Departmental Revenue - Total depart mental revenues are projected to increase by 37% compared to the FY2020-21 budget. Almost 77% of departmental revenues for FY 2021-22 will be from the Police Department and the Building Division of the Community and Ec onomic Development Department (CED). Polic e Department collects traffic and park ing violation fines. The Building Di vision in CED expects more permit applications after delays caused by the pandemic, resu lting in higher permit fee revenues. The City Council approved user fee increases effective September 1, 2 021 and the increases are included in the FY 2021-22 departmental revenues forecast.

General Fund expenditures
 Regular and Part-Time Salaries - Salaries for all full time and part time staff is the single largest category of expenditures in the operating budget at approximate ly 45% of total General Fund expenditures. The total budget for regular, part-time, and overtime salaries across all General Fund departments is $23 million.  PERS Retirement - Employee retirement benefits tota l $9.5 million, or 18.6% of the General Fund expenditures. This amount represents an increase of approximately $600,000 co mpared to the FY2020-21 budget. The City continues to experience significant impacts from increasing co sts for retirement benefits through the CalPERS system.
 Employee Insurance Premiums - Employee insurance benefits (medical , life and long-term disability) are provided through the Teamster’s Health and Welfare Trust and amount to $4.8 million in FY2021-22. The Trust notifies the City of the projected premium increase at the end of each calendar year. 20 100 of 299

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
Enterprise Funds
 The City completed a comprehensive review of operat
ing and capital needs in the Water and Wastewater
Enterprises and established a new multi-year utility rate schedule in April 2017. Th e rate analysis included careful evaluation of all operatio nal costs and the planned schedule and costs for delivery of capital improvement projects necessary to replace and rehab ilitate the City’s aging water and wastewater system infrastructure. The multi-year Water and Wastewater rate program adopted by the City Council in May 2017 provides for an annual 5% rate in crease through FY2021-22. To lessen th e financial burden on residents in the era of COVID-19, the City Council decided not to increase water and wastewater rate in FY 2021-22.  The Stormwater Enterprise is responsible for maintain ing the stormwater conveyance system as well as adhering to the requirements outlined in the National Pollutant Discharg e Elimination System (NPDES).

Stormwater fees are collected through the County propert y tax, and a minimum of $46.16 per assessor parcel
number (APN) is assessed for most properties in San Br uno. These fees have been in place since 1994 and are inadequate to fund ongoing operations and necessar y equipment and capital investments to meet federal requirements. The City has not been able to collect sufficient revenue to replace/repair the aging stormwater system. The City held a mail ballot property-owner election to increase Storm Drainage and Flood Protection Fee on June 15, 2021. The initiative was rejected by voters overwhelmingly and the City is exploring alternative options to address much needed stormwater system improvements.  CityNet Fund – CityNet made great strides in FY2020
-21 to control expenses a nd focus on higher margin
business. The spread of Coronavirus caused some cust omers to fall behind on th eir payments and CityNet downgraded customers who could not bring their accounts up to date to lo wer rate subscriptions. In the long-
range financial forecast, the negative fund balance is ex pected to grow to $14.9 million in FY2022-23 and decrease gradually in the years after. CityNet is pos itioned to stabilize operations, implement technological improvements to serve existing cust omers and attract new customers, an d become fiscally solvent in the coming years.

Capital Improvement Program and Debt Service
 The FY2021-22 Capital Improvement Program identi fies more than 100 funded and underfunded projects/programs organized in 9 categories. $238.2 million in capital investment is programmed through the 5-year CIP to assure rehabilitation, replacement, and improvement of City facilities and infrastructure. $142.4 million of this amount is the expected cost of sche duled improvements to the City’s water and wastewater systems.
 A total of $6.0 million is set-aside to meet debt service obligations.

Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, custom ers, investors, and creditors with a general overview of the City’s finan ces and to show the City’s accountab ility for the revenues it received.

Questions about this report should be directed to the Finance Department at [email protected] or 567 El Camino Real, San Bruno, CA 94066. This report as well as other financial reports can be viewed on the City of San Bruno’s website at www.sanbruno.ca.gov.
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STATEME

NT OF NET POSITION AND

STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Ac tivities summarize the City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets and all its liabilities, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City’s transactions is take n into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the C ity’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances.

The City’s Business-type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increase s and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.

The format of the Statement of Activities presents the C ity’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Pr ogram revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to a rrive at the net expense of each governmental and business-type program. The City’s ge neral revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate , and the Change in Net Position is computed and reconciled with the Statement of Net Position.

These financial statements along with the fund financial statements and footnotes are called Basic Financial Statements.
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Governmental Business-Type
Activities Activities 2021 2020
ASSETS
Current assets:

Cash and investments $49,935,896 $83,336,857 $133,272,753 $106,608,703 Cash and investments with fiscal agen
t 141,620 4,123,199 4,264,819 15,862,006
Receivables (net):

Taxes 6,437,389 9,544 6,446,933 1,865,429
Accounts 34,682 6,022,163 6,056,845 5,520,465
Interest 139,501 139,501 296,236
Loans 775,862 775,862 791,087
Other 2,331,907 2,331,907 3,587,957
Internal balances 12,970,817 (12,970,817)
Total current assets 72,767,674 80,520,946 153,288,620 134,531,883 Noncurrent assets:

Capital assets not being depreciated:

Land 4,649,235 576,842 5,226,077 5,226,077
Construction in progress 7,964,654 12,334,468 20,299,122 18,257,818 Capital assets net of accumulated
depreciation:

Buildings and improvements 6,897,115 72,854,125 79,751,240 75,886,599 Machinery, improvements and equipment 4,741,554 7,110,717 11,852,271 13,601,042 Infrastructure 45,291,885 45,291,885 47,702,507
Sewer plant 12,170,648 12,170,648 11,845,873
Total capital assets (net) 69,544,443 105,046,800 174,591,243 172,519,916 Total noncurrent assets 69,544,443 105,046,800 174,591,243 172,519,916 Total assets 142,312,117 185,567,746 327,879,863 307,051,799

DEFERRED OUTFLOW OF RESOURCES
Deferred amount on pensions 16,656,156 2,182,625 18,838,781 16,974,376 Deferred amount on refunding 88,339 88,339 95,701
Total deferred outflows of resources 16,656,156 2,270,964 18,927,120 17,070,077

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 5,830,939 2,782,167 8,613,106 11,226,566 Interest payable 41,966 864,468 906,434 947,393
Deposits payable 6,997,390 6,997,390
Unearned revenue 870,468 695,807 1,566,275 1,691,533
Compensated absences - curren
t 504,314 102,661 606,975 554,293
Long-term debt - current 1,337,633 2,122,235 3,459,868 3,446,776 Claims payable - current 1,072,204 1,072,204 1,126,626
Total current liabilities 16,654,914 6,567,338 23,222,252 18,993,187 Noncurrent liabilities:

Compensated absences - non-current 2,365,713 479,140 2,844,853 2,627,712 Long-term debt - non-current 5,481,500 44,212,303 49,693,803 53,153,671 Claims payable - non-current 4,339,796 4,339,796 3,809,374 Net pension liability 86,243,730 16,235,611 102,479,341 94,844,735 Total noncurrent liabilities 98,430,739 60,927,054 159,357,793 154,435,492 Total liabilities 115,085,653 67,494,392 182,580,045 173,428,679

DEFERRED INFLOW OF RESOURCES
Deferred amount on pensions 2,389,141 2,389,141 3,767,693 Total deferred inflows of resources 2,389,141 2,389,141 3,767,693

NET POSITION
Net investment in capital assets 68,788,202 58,800,601 127,588,803 123,059,245 Restricted for:

Capital projects 7,615,283 4,123,199 11,738,482 18,710,882 Debt service 5 5 1
Measure A 1,106,230 1,106,230 2,486,151
Community services 14,060,970 14,060,970 16,625,932
Unrestricted (50,077,211) 57,420,518 7,343,307 (13,956,707) Total net position $41,493,479 $120,344,318 $161,837,797 $146,925,504 See accompanying notes to financial statements
Totals

CITY OF SAN BRUNO
Statement of Net Position
June 30, 2021
(with comparative totals for June 30, 2020)
25 105 of 299
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:

Governmental activities:

General government $8,441,787 $4,735,876 $1,035,143 $5,124,695 Public safety 32,515,036 2,134,812 1,106,273
Public works 3,131,204 708,024 100,561
Streets 4,081,082 17,900 95,766 689,796
Parks and recreation 4,814,770 283,124 418,615 1,993,985 Library 2,298,623 772 49,081
Community and economic development 2,652,300 2,704,804 217,361 Interest expense 324,944
Total governmental activities 58,259,746 10,585,312 3,022,800 7,808,476 Business-type activities:

Water 12,697,845 17,777,900
Stormwater 1,375,960 655,608
Wastewater 12,879,291 18,470,837
Cable television 9,927,716 9,017,048
Total business-type activities 36,880,812 45,921,393
Total primary government $95,140,558 $56,506,705 $3,022,800 $7,808,476 General revenues:

Taxes:

Property taxes, levied for general purposes
Transient occupancy tax
Franchise tax
Sales tax, including subvention
Cardroom taxes
Other taxes
Intergovernmental, unrestricted:

State motor vehicle in-lieu tax, including subvention
State highway user tax
Use of money and property
Transfers
Total general revenues and transfers
Change in net position
Net position - Beginning
Net position - Ending
See accompanying notes to financial statements
Program Revenues

CITY OF SAN BRUNO
Statement of Activities
For the year ended June 30, 2021
(with comparative totals for the year ended June 30, 2020) 26 106 of 299
Governmental Business-Type
Activities Activities 2021 2020
$2,453,927 $2,453,927 ($5,332,033)
(29,273,951) (29,273,951) (28,876,454)
(2,322,619) (2,322,619) (1,040,804)
(3,277,620) (3,277,620) (2,859,607)
(2,119,046) (2,119,046) (1,201,699)
(2,248,770) (2,248,770) (2,379,085)
269,865 269,865 3,174,796
(324,944) (324,944) (373,262)
(36,843,158) (36,843,158) (38,888,148)
$5,080,055 5,080,055 4,799,533
(720,352) (720,352) (1,636,583)
5,591,546 5,591,546 5,304,927
(910,668) (910,668) (1,749,522)
9,040,581 9,040,581 6,718,355
(36,843,158) 9,040,581 (27,802,577) (32,169,793)
12,618,447 12,618,447 12,212,891
1,247,467 1,247,467 2,617,524
1,798,673 1,798,673 1,861,256
17,780,042 17,780,042 9,281,920
2,035,009 2,035,009 1,974,980
2,045,462 2,045,462 1,972,392
3,180,581 3,180,581 5,013,326
1,852,026 1,852,026 1,844,231
(341,249) 498,412 157,163 3,543,973
(201,358) 201,358
42,015,100 699,770 42,714,870 40,322,493
5,171,942 9,740,351 14,912,293 8,152,700
36,321,537 110,603,967 146,925,504 138,772,804
$41,493,479 $120,344,318 $161,837,797 $146,925,504
Totals
Net (Expense) Revenue and
Changes in Net Position
27 107 of 299
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108 of 299
FUND

FINANCIAL STATEMENTS
Fund Financi
al Statements are presented by individual major funds, while non-major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year.

MAJOR GOVERNMENTAL FUNDS
The funds
described below were determined to be Major Funds by the City. Individual non-major funds may be found in the Supplemental section.

GENERAL FUND
The General Fund is the primary operating fund of the C ity, accounting for all activities except those legally or administratively required to be accounted for in other fund s. The General Fund includes activities such as public safety, parks and recreation services, community a nd economic development, public works and streets maintenance, legal and administrative services. The General Fund also accounts for reserves, Measure G funds, American Rescue Plan Act funds, and developer contributions.

STREET IMPROVEMENT CAPITAL PROJECT FUND
The Street Improvement Capital Project Fund accounts for funds expended for transportation infrastructure such as street rehabilitation, streetlights, traffic signals and street medians. 29 109 of 299
Street Improvement Non Major
General Capital Projects Governmental
Fund Fund Funds 2021 2020
ASSETS
Cash and investments $21,888,196 $4,683,864 $20,770,396 $47,342,456 $35,623,423 Cash and investments with fiscal agent 50,496 5 50,501 50,497 Receivables:

Taxes 6,161,557 275,832 6,437,389 1,865,429
Interest 137,168 2,333 139,501 296,236
Loans 775,862 775,862 791,087
Other 1,407,317 313,214 611,376 2,331,907 3,587,957
Due from other funds 27,135 27,135
Advances to other funds 14,415,651 14,415,651 14,092,938 Total assets $44,863,382 $4,997,078 $21,659,942 $71,520,402 $56,307,567

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $5,117,831 $277,523 $5,395,354 $5,902,650 Due to other funds 27,135 27,135
Deposits payable 3,504,872 3,492,518 6,997,390
Unearned revenue 859,418 11,050 870,468 937,518
Total liabilities 9,482,121 3,808,226 13,290,347 6,840,168 Deferred Inflows of Resources:

Unavailable revenue 83,234 83,234
Total deferred inflows of resources 83,234 83,234
Fund balances:

Nonspendable 14,415,651 14,415,651 13,600,209
Restricted $4,997,078 17,785,410 22,782,488 22,102,576
Committed 21,109,020
Assigned 30,408,528 30,408,528 611,383
Unassigned (9,442,918) (16,928) (9,459,846) (7,955,789) Total fund balances 35,381,261 4,997,078 17,768,482 58,146,821 49,467,399 Total liabilities, deferred inflows of
resources and fund balances $44,863,382 $4,997,078 $21,659,942 $71,520,402 $56,307,567 See accompanying notes to financial statements
Totals

CITY OF SAN BRUNO
Balance Sheet
Governmental Funds
June 30, 2021
(with comparative totals for June 30, 2020)
30 110 of 299
Total fund balances - total governmental funds $58,146,821 Amounts reported for governmental activities in the Statement of Net Position are different because:

CAPITAL ASSETS
Capital assets used in governmental activities are not
current financial resources and therefore are not reported in the governmental funds balance sheet. 69,539,138

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal Services funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal Service funds are:

Cash and investments 2,593,440
Cash and investments with trustee 91,119

Accounts receivable
34,682
Capital Assets
5,305
Accounts payable
(435,585)
Liability for claims (5,412,000)
Compensated absences (82,317)
Net amount allocated to business-type activities (1,444,834)

LONG-TERM ASSETS AND LIABILITIES
The asset and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:

Pension obligation bonds (6,062,892)
Leases payable (756,241)
Accrued interest payable (41,966)
Unavailable revenue 83,234
Compensated absences
(2,787,710)
Net pension liability (86,243,730)
Deferred outflows of resources related to pensions 16,656,156 Deferred inflows of resources related to pensions (2,389,141) Net position of governmental activities $41,493,479

CITY OF SAN BRUNO
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
at June 30, 2021
See accompanying notes to financial statements
31 111 of 299

CITY OF SAN BRUNO
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2021
(with comparative totals for the year ended June 30, 2020) Street Improvement Non Major
General Capital Projects Governmental Totals
Fund Fund Funds 2021 2020
REVENUES:

Taxes $34,081,291 $3,315,905 $37,397,196 $29,841,240
Licenses and permits 4,914,700 220,832 5,135,532 3,850,848 Intergovernmental 4,755,748 $689,796 709,074 6,154,618 6,809,578 Charges for services 2,093,216 2,093,216 2,918,239
Fines and forfeitures 722,685 101,781 824,466 1,115,456 Use of money and property (347,948) 97,912 (250,036) 2,349,974 Other revenues 9,964,869 2,229,951 12,194,820 12,481,391 Total revenues 56,184,561 689,796 6,675,455 63,549,812 59,366,726 EXPENDITURES:

Current:

General government 7,012,591 42,464 7,055,055 6,526,050 Public safety 28,143,174 539,122 28,682,296 27,536,184
Public works 1,540,457 1,540,457 1,447,402
Streets 1,570,931 73,236 1,644,167 1,928,545
Parks and recreation 4,645,159 193,349 4,838,508 5,844,760 Library 1,930,827 26,706 1,957,533 2,105,201
Community and economic development 2,516,995 132,793 2,649,788 3,043,416 Capital outlay 800,041 1,533,565 2,164,396 4,498,002 6,172,424 Debt service:

Principal 1,398,135 1,398,135 1,358,246
Interest and fiscal charges 315,091 315,091 356,404
Total expenditures 48,160,175 1,533,565 4,885,292 54,579,032 56,318,632

REVENUES OVER (UNDER)
EXPENDITURES 8,024,386 (843,769) 1,790,163 8,970,780 3,048,094 OTHER FINANCING SOURCES (USES):

Transfers in 3,138,051 5,011,006 4,021,725 12,170,782 10,231,738 Transfers out (3,145,999) (865,287) (8,450,854) (12,462,140) (11,501,441) Total other financing sources (uses) (7,948) 4,145,719 (4,429,129) (291,358) (1,269,703) Net change in fund balances 8,016,438 3,301,950 (2,638,966) 8,679,422 1,778,391 FUND BALANCES:

Beginning of year 27,364,823 1,695,128 20,407,448 49,467,399 47,689,008 End of year $35,381,261 $4,997,078 $17,768,482 $58,146,821 $49,467,399 See accompanying notes to financial statements
32 112 of 299
Net change in fund balances- total governmental funds $8,679,422 Amounts reported for governmental activities in the Statement of Activities are different because of the following:

CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

The capital outlay asset addition expenditures are therefore added back to fund balance 4,498,002 Amounts charged to Public Works (1,571,739)
Retirements are deducted from fund balance (28,991)
Depreciation expense is deducted from the fund balance
(Depreciation expense is net of internal service fund depreciation of $3,979 which has already been allocated to internal service funds.) (3,869,710)

LONG TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.

Capital lease obligation principal payments 493,135
Pension obligation bond principal payments 905,000
Amortization of premium on long-term debt (19,518)

ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):

Interest payable 9,665
Unavailable revenue 83,234
Compensated absences (155,767)
Net pension liability, deferred inflows and deferred outflows (4,039,873)

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.

Change in Net Position - All Internal Service Funds 189,082

CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
$5,171,942
See accompanying notes to financial statements

CITY OF SAN BRUNO
Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balances of Governmental Funds
For the year ended June 30, 2021
to the Statement of Activities
33 113 of 299
This Page Left Intentionally Blank
114 of 299
PRO

PRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business
enterprise. The intent of the City is that the cost of providi ng goods and services be fi nanced primarily through user charges.

The City has identified the funds below as major proprietary funds in fiscal year 2021.

WATER
To account for water services provided to the citizens of San Bruno. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvement, and billing and collections.

STORMWATER FUND
To account for storm drain system maintenance, street sw eeping and other related activities to the citizens of San Bruno. Funding comes from customers connected to the City's sewer system, due to extensive infiltration and intrusion to the City's sewer system and street sweeping charges.

WASTEWATER FUND
To account for sanitary sewer services provided to the citizens of San Bruno. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, treatment and capital improvement.

CITYNET FUND
To account for operating and capital improvement costs to provide a full suite of video, data and voice services to residential and business customers.
35 115 of 299
Water Stormwater Wastewater
ASSETS
Current assets:

Cash and investments $41,826,760 $719,837 $40,790,260
Cash and investments with fiscal agent/trustee 1,094,662 3,028,537 Receivables (net):

Taxes 9,544
Accounts 2,787,126 6,600 2,279,792
Total current assets 45,708,548 735,981 46,098,589
Noncurrent assets:

Non-depreciable capital assets 6,411,059 490,059 5,510,192 Depreciable capital assets 31,132,007 4,466,052 54,943,287 Total noncurrent assets 37,543,066 4,956,111 60,453,479 Total assets 83,251,614 5,692,092 106,552,068

DEFERRED OUTFLOW OF RESOURCES
Deferred amount on pension 697,255 94,209 628,281
Deferred amount on refunding 88,339
Total deferred outflows of resources 697,255 94,209 716,620

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 868,080 30,710 1,251,023 Interest payable 230,825 633,643
Unearned revenue
Compensated absences - current 21,293 6,167 18,969
Liability for claims - current
Long term debt - due within one year 261,555 1,860,680
Total current liabilities 1,381,753 36,877 3,764,315
Noncurrent liabilities:

Advances from other funds
Interfund balances
Compensated absences - noncurrent 121,271 47,930 100,089 Long term debt - due in more than one year 11,930,425 32,281,878 Liability for claims - non-current
Net pension liability 5,186,581 700,782 4,673,513
Total noncurrent liabilities 17,238,277 748,712 37,055,480 Total liabilities 18,620,030 785,589 40,819,795

DEFERRED INFLOW OF RESOURCES
Deferred amount on pension
Total deferred inflows of resources
Net Position
Net investment in capital assets 25,351,086 4,956,111 26,399,260 Restricted for capital projects 1,094,662 3,028,537
Unrestricted (deficit) 38,883,091 44,601 37,021,096
Total net position $65,328,839 $5,000,712 $66,448,893
Reconciliation to government-wide statement of net position:

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds $810,899 $84,367 ($225,117) Net position of business-type activities $66,139,738 $5,085,079 $66,223,776 See accompanying notes to financial statements

CITY OF SAN BRUNO
Statement of Net Position
Proprietary Funds
June 30, 2021
(with comparative totals for June 30, 2020)
Business Type Activities - Enterprise Funds
36 116 of 299
CityNet 2021 2020 2021 2020
$83,336,857 $69,100,227 $2,593,440 $1,885,053
4,123,199 15,720,390 91,119 91,119
9,544
$948,645 6,022,163 5,520,232 34,682 233
948,645 93,491,763 90,340,849 2,719,241 1,976,405
500,000 12,911,310 13,404,690
1,594,144 92,135,490 88,594,366 5,305 9,284
2,094,144 105,046,800 101,999,056 5,305 9,284
3,042,789 198,538,563 192,339,905 2,724,546 1,985,689
762,880 2,182,625 1,811,589
88,339 95,701
762,880 2,270,964 1,907,290
632,354 2,782,167 4,955,621 435,585 368,295
864,468 895,762
695,807 695,807 754,015
56,232 102,661 86,014 21,275 16,439
1,072,204 1,126,626
2,122,235 2,068,160
1,384,393 6,567,338 8,759,572 1,529,064 1,511,360
14,415,651 14,415,651 492,729
13,600,209
209,850 479,140 401,681 61,042 45,928
44,212,303 46,334,537
4,339,796 3,809,374
5,674,735 16,235,611 15,225,609
20,300,236 75,342,705 76,054,765 4,400,838 3,855,302
21,684,629 81,910,043 84,814,337 5,929,902 5,366,662
287,190
287,190
2,094,144 58,800,601 53,692,060 5,305 9,284
4,123,199 15,720,390
(19,973,104) 55,975,684 39,733,218 (3,210,661) (3,390,257) ($17,878,960) $118,899,484 $109,145,668 ($3,205,356) ($3,380,973) $774,685 $1,444,834 $1,458,299
($17,104,275) $120,344,318 $110,603,967
Governmental Activities -
Business Type Activities - Enterprise Funds Internal Service Funds Totals Totals
37 117 of 299

CITY OF SAN BRUNO
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the year ended June 30, 2021
(with comparative totals for the year ended June 30, 2020) Water
Stormwater Wastewater
OPERATING REVENUES:

Charges for services:

Water sales $17,602,299
Sewer service charges $18,298,857
Cable television charges
Other service charges 175,601 $561,761 171,980
Other operating revenue 93,847
Total operating revenues 17,777,900 655,608 18,470,837
OPERATING EXPENSES:

Water supply 10,443,967
Distribution 1,145,558
Treatment 8,990,002
Cable operations
Central garage
Insurance expenses
Technology support
Facilities maintenance
Depreciation and amortization 1,827,153 225,857 2,689,597 Total operating expenses 12,271,120 1,371,415 11,679,599 OPERATING INCOME (LOSS) 5,506,780 (715,807) 6,791,238
NONOPERATING REVENUES (EXPENSES):

Investment income 253,539 5,305 239,568
Interest and debt service expenses (424,520) (1,196,837) Total non-operating revenues (expenses), net (170,981) 5,305 (957,269) NET INCOME (LOSS) BEFORE OPERATING TRANSFERS 5,335,799 (710,502) 5,833,969 Transfers in 25,000 450,000 25,000
Transfers out (298,642)
CHANGE IN NET POSITION 5,360,799 (559,144) 5,858,969
NET POSITION:

Beginning of year 59,968,040 5,559,856 60,589,924
End of year $65,328,839 $5,000,712 $66,448,893
Reconciliation to government-wide statement of activities:

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds ($2,205) ($4,545) ($2,855)
Change in net position of business-type activities - End of year $5,358,594 ($563,689) $5,856,114 See accompanying notes to financial statements
Business Type Activities - Enterprise Funds
38 118 of 299
CityNet 2021 2020 2021 2020
$17,602,299 $16,866,271
18,298,857 18,087,342
$9,003,534 9,003,534 9,241,855
10,243 919,585 801,646 $6,238,413 $5,497,561
3,271 97,118 124,711
9,017,048 45,921,393 45,121,825 6,238,413 5,497,561
10,443,967 9,715,615
1,145,558 2,081,748
8,990,002 8,955,800
9,513,308 9,513,308 9,950,746
732,601 600,771
2,853,629 3,472,788
966,026 898,329
1,596,561 1,341,795
408,365 5,150,972 5,593,868 3,979 3,979
9,921,673 35,243,807 36,297,777 6,152,796 6,317,662
(904,625) 10,677,586 8,824,048 85,617 (820,101)
498,412 1,413,655
(2,183) (1,623,540) (1,682,320)
(2,183) (1,125,128) (268,665)
(906,808) 9,552,458 8,555,383 85,617 (820,101)
500,000 1,319,703 90,000
(298,642) (50,000)
(906,808) 9,753,816 9,825,086 175,617 (820,101)
(16,972,152) 109,145,668 99,320,582 (3,380,973) (2,560,872) ($17,878,960) $118,899,484 $109,145,668 ($3,205,356) ($3,380,973) ($3,860) ($13,465) ($423,373)
($910,668) $9,740,351 $9,401,713
Governmental Activities -
Internal Service Funds
Totals Totals
Business Type Activities - Enterprise Funds
39 119 of 299

CITY OF SAN BRUNO
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
(with comparative totals for the year ended June 30, 2020) Water Stormwater Wastewater
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from interfund services provided
Cash receipts from customers $17,298,827 $655,608 $18,491,853 Cash payments to suppliers for goods and services (12,290,429) (1,280,271) (9,340,503) Cash (payments) receipts to employees for services 112,527 39,775 122,891 Net cash provided by (used by) operating activities 5,120,925 (584,888) 9,274,241 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Advance repayments to other funds
Transfers received from other funds 25,000 450,000 25,000 Transfers paid to other funds (298,642)
Net cash provided by noncapital financing activities 25,000 151,358 25,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Proceeds from bond issue
Acquisition and construction of capital assets (3,971,131) (76,723) (4,150,862) Principal payments on long-term debt (215,000) (1,706,195) Interest paid on long-term debt (427,745) (1,322,952)
Net cash (used) by capital and related financing activities (4,613,876) (76,723) (7,180,009) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (expense) 253,539 5,305 239,567
Net cash provided by investing activities 253,539 5,305 239,567 Net increase (decrease) in cash and cash equivalents 785,588 (504,948) 2,358,799 CASH AND CASH EQUIVALENTS:

Beginning of year 42,135,834 1,224,785 41,459,998
End of year $42,921,422 $719,837 $43,818,797
Reconciliation of Cash and Cash Equivalents to
Statement of Net Position
Cash and investments $41,826,760 $719,837 $40,790,260
Cash and investments held by trustees 1,094,662 3,028,537 Total Cash and Cash Equivalents, End of Year $42,921,422 $719,837 $43,818,797 Reconciliation of income (loss) from operations to net
cash provided by (used for) operating activities:

Operating income (loss) $5,465,225 ($715,807) $6,791,238 Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 1,827,153 225,857 2,689,597 (Increase) decrease in current assets:

Taxes receivable (9,544)
Accounts receivable (479,073) 21,016
Due from other funds
(Increase) decrease in deferred outflows of resources (118,530) (16,015) (106,805) Increase (decrease) in liabilities:

Accounts payable and accrued liabilities (1,804,907) (125,169) (350,501) Due to other funds
Unearned revenue
Compensated absences 150 24,591 21,630
Net Pension liability 322,652 43,595 290,735
Increase (decrease) in claims liability - noncurrent
Increase (decrease) in deferred inflows of resources (91,745) (12,396) (82,669) Net cash provided by (used for) operating activities $5,120,925 ($584,888) $9,274,241

NON-CASH ACTIVITIES
Amortization of bond premiums $41,555 $105,409
Amortization of deferred amount of refunding (7,362)
Total non-cash activities $41,555 $98,047
See accompanying notes to financial statements
Business Type Activities - Enterprise Funds
40 120 of 299
CityNet 2021 2020 2021 2020
($13,600,209) ($13,600,209) $972,259 $6,258,363 $5,473,374 8,914,966 45,361,254 44,966,360
(9,406,185) (32,317,388) (31,833,010) (5,639,976) (5,638,824) 170,689 445,882 1,027,071
(13,920,739) (110,461) 15,132,680 618,387 (165,450)
13,922,922 13,922,922 (167,207)
500,000 1,319,703
(298,642) (50,000) 90,000
13,922,922 14,124,280 1,102,496 90,000
(8,198,716) (14,319,192)
(1,921,195) (1,991,809)
(1,750,697) (1,719,708)
(11,870,608) (18,030,709)
(2,183) 496,228 1,410,591
(2,183) 496,228 1,410,591
2,639,439 (384,942) 708,387 (165,450)
84,820,617 85,205,559 1,976,172 2,141,622
$87,460,056 $84,820,617 $2,684,559 $1,976,172
$83,336,857 $69,100,227 $2,593,440 $1,885,053
4,123,199 15,720,390 91,119 91,119
$87,460,056 $84,820,617 $2,684,559 $1,976,172
($904,625) $10,636,031 $8,824,048 $85,617 ($820,101)
408,365 5,150,972 5,593,868 3,979 3,979
(9,544) (34,682)
(43,874) (501,931) (164,961) 233 (233)
(129,686) (371,036) 163,245
107,123 (2,173,454) (1,129,101) 67,290 151,092
(13,600,209) (13,600,209) 972,259
(58,208) (58,208) 9,496
47,735 94,106 86,412 19,950 (24,187)
353,020 1,010,002 805,372
476,000 524,000
(100,380) (287,190) (27,958)
($13,920,739) ($110,461) $15,132,680 $618,387 ($165,450) Internal Service Funds
Governmental Activities -
TotalsTotals
Business Type Activities - Enterprise Funds
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FI

DUCIARY FUNDS
Fiduciary funds are used
to report assets held for fi duciary activities, which may be carried out by primary governments or their component units. Fiduciary funds ma y be (1) held for legally established trust funds or similar arrangements, or (2) held outside of a trust exclus ively for the benefit of individuals or organizations and used for activities that meet the criteria to be treated as fiduciary activities.

REDEVELOPMENT AGENCY OBLIGATION RETIREMENT TRUST FUND
To account for the assets, liabilities and activities of the form er Redevelopment Agency of the City in a trustee capacity to pay for enforceable oblig ations of the former Redevelopmen t Agency. In accordance with Assembly Bill (AB) X1 26 and AB 1484, the San Bruno Redevelopment Agency was dissolved February 1, 2012.

RECOLOGY SAN BRUNO CUSTODIAL FUND
To account for funds billed, collected, and remitted to Recology San Bruno for waste management services within the City.
43 123 of 299
2021 2020 2021 2020
ASSETS
Cash and investments $2,207,987 $1,807,935 $531,720 $457,248 Cash and investments with
fiscal agent/trustee 5
Accounts receivable 790,645 618,845
Total assets $2,207,992 $1,807,935 $1,322,365 $1,076,093

DEFERRED OUTFLOW OF RESOURCES
Deferred loss on refunding 44,573 $44,573
Total deferred outflows of resources 44,573 44,573

LIABILITIES
Accounts payable $197,595 $194,226 $1,320,570 $1,073,670 Interest payable 28,608 30,775
Other liabilities 1,795 2,423
Bonds Payable - due in one year 392,422 377,422
Bonds Payable - due in more than one year 4,186,798 4,579,220 Total liabilities $4,805,423 $5,181,643 $1,322,365 $1,076,093

NET POSITION
Restricted net position held in trust ($2,552,858) ($3,329,135) Redevelopment
Agency Obligation
Retirement Trust Fund Custodial Fund
See accompanying notes to financial statements
Recology San Bruno

CITY OF SAN BRUNO
Statement of Net Position
Fiduciary Funds
June 30, 2021
(with comparative totals for June 30, 2020)
44 124 of 299
2021 2020 2021 2020

ADDITIONS
Administration allowance $23,861 $19,124
Taxes 1,099,226 680,258
Charges for services $8,577,163 $8,620,463
Other revenues 5 113
TOTAL ADDITIONS 1,123,092 699,495 8,577,163 8,620,463

DEDUCTIONS
Community development 216,754 236,389
Franchise fees to City 866,069 861,467
AB939 fees to City 86,607 86,147
Remittances to Recology 7,624,487 7,672,849
Interest and fiscal charges 130,061 156,432
TOTAL DEDUCTIONS 346,815 392,821 8,577,163 8,620,463
CHANGES IN NET POSITION 776,277 306,974
NET POSITION - Beginning of the year (3,329,135) (3,636,109) NET POSITION - End of the year ($2,552,858) ($3,329,135) See accompanying notes to financial statements
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2021
(with comparative totals for June 30, 2020)

CITY OF SAN BRUNO
Recology San Bruno
Custodial Fund
Redevelopment
Agency Obligation
Retirement Trust Fund
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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Reporting Entit
y
The financial reporting entity consists of (a) the pr imary government, the City of San Bruno (City), (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

Related Organization
The San Bruno Community Foundation (Foundation) is a California nonprofit corporation which was organized in 2013 as a public benefit 501(c)(3) nonprofit corporation and has been determined to be a Type I supporting organization under Section 509(a)(3) of the Internal Revenue Code. Pursuant to the settlement agreement dated March 12, 2012, between Pacific Gas & Electric Compa ny (PG&E) and the City of San Bruno, both parties agreed to resolve and settle all claims arising out of the September 9, 2010 pipeline incident. The terms required PG&E to contribute a total of $70 mil lion to the City, which comprised of 1) five vacant plots of land in the Glenview (Crestmoor) neighborhood, whic h had a total fair market value of $1,250,000 and 2) $68,750,000 in cash, to transfer to a tax-exempt, nonprofit public pur pose entity. Hence, the Foundation was created from the Settlement Agreement. The Foundation engages primarily in the administration of PG&E restitution funds. The election of the Foundation’s Board is controlled by the C ity. Separate financial st atements for the Foundation may be obtained by contacting the San Bruno Community Foundation, 901 Sneath Lane, Ste. 209, San Bruno, CA 94066.

Basis of Presentation
Government-Wide Financial Statements
The statement of net position and statement of activities di splay information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Gove rnmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services.

Fund Financial Statements
Fund financial statements of the reporting entity are organi zed into funds each of which is considered to be a separate accounting entity. Each fund is accounted fo r by providing a separate set of self-balancing accounts, which constitute its assets, liabilities, fund balance/net position, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises – where the in tent of the City Council is that the costs of providing goods or services to the general public on a continuing ba sis be financed or recovered primar ily through user charges or where the City Council has decided that periodic determination of net income is appropriate for accountability purposes 47 127 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A fund is con
sidered major if it is the primary operating fund of the City or meets the following criteria:
a. Total assets, deferred outflows of resources, liabiliti es, deferred inflow of res ources, revenues, or expenditures/expenses of that individua
l governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and, b. Total assets, deferred outflows of resources, liabiliti es, deferred inflow of res ources, revenues, or expenditures/expenses of the indi
vidual governmental fund or enterprise fund ar e at least 5 percent of the correspondi
ng total for all governmental a nd enterprise funds combin ed. However, some funds are reported as majo
r funds due to the significance to the users of the financial statements.

The major funds of the fi
nancial reporting entity are described below:

Governmental Activities
General Fund – The General Fund is the City’s primary operatin g fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund.

Street Improvement Capital Project Fund – The Street Improvement Capital Projects Fund accounts for funds expended for transportation infrastructure such as street rehabilitation, streetlights, traffic signals, and street medians.

Business-type Activities
The City reported all its enterprise funds as major funds in the accompanying financial statements:

Water Fund – Accounts for water services provided to the citizens of San Bruno. All activities necessary to provide such services are accounted for in this fund, in cluding, but not limited to, administration, operations, maintenance, capital improvement, and billing and collections.

Stormwater Fund – Accounts for storm drain system maintenance, st reet sweeping and other related activities to the citizens of San Bruno. Funding comes from customers connected to the City's sewer system, due to extensive infiltration and intrusion to the City's sewer system and street sweeping charges.

Wastewater Fund – A ccounts for sanitary sewer services provided to the citizens of San Bruno. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, treatment.

CityNet Fund – Accounts for operating costs associated with administering the cable television franchise. 48 128 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City also reports the following fund
types:

Internal Service Funds – The Internal Service Funds are used to account for financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis. The internal service funds are used to account for central garage, insurance programs, technology development, and facility maintenance. These funds are eliminated as part of the reconciliation process and treated as governmental activities, since these are the primary funds served.

Fiduciary Funds – These funds include: Redevelopment Agency Obligation Retirement Trust Fund – which accounts for the assets, liabilities and ac tivities of the former Redevelopment Agency of the City in a trustee capacity to pay for enforceable obligations of the former Redevelopment Agency; and Recology San Bruno Custodial Fund – which accounts for funds billed, collected, and remitted to Recology San Bruno for waste management services within the City.

Measurement Focus
Measurement focus is a term used to describe how transactions are reco rded within the various financial statements.

On the government-wide Statement of Net Position a nd the Statement of Activities, both governmental and business-type activities are presented using the economic resources measurement focus as defined in item b below.

In the fund financial statements, the “current fina ncial resources” measurement focus or the “economic resources” measurement focus is used as appropriate:
a.

All governmental funds utilize a “current financia l resources” measurement focus. Only current financial assets and liabilities are general
ly included on their balance sheets. Their operating statements present sources and uses of available sp
endable financial resources during a given period. These funds use fund bala
nce as their measure of available spendable financial resources at the end of the period. b.

The enterprise and interna l service funds utilize an “economic resources” measurement focus. The accounting objectives of t
his measurement focus are th e determination of net income, financial position, and cash flows. All assets and liabilities (whether cu rrent or noncurrent) associated with their activities are reported. Enterprise and internal service fund equity is classified as net position. c.

Fiduciary funds are accounted for using the flow of economic resources measurement focus and th e accrual basi
s of accounting. Fiduciary funds ar e excluded from the government-wide financial statements because they do not represent resources of the City. 49 129 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Basis of Accounting

In the government-wide Statement of Net Position and Statement of Activities both governmental and business- type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are reco rded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulti ng from exchange and exchange-like transactions are recognized when the exchange takes place.

In the fund financial statements, governmental funds are presented on the modified accr ual basis of accounting.

Under this modified accrual basis of accounting, reve nues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably es timate the amount. Available means collectible within the current period, considered to be 60 days, or soon enough thereafter to pay current liabilities. Major revenue sources meeting this criterion are property taxes, sales ta xes, grants and interest. Expenditures (including capital outlay) are recorded when the related fund liability is incurred.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributi ons, and 3) capital grants a nd contributions. Internally dedicated resources are reported as general revenues rather than program revenues. Likewise, general revenues include all taxes.

The enterprise, internal service and ag ency funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expe nses are recorded when the liability is incurred or economic asset used. Operating revenues in the proprietary fund are those revenues that are generated from the primary operations of the fund. All other revenues ar e reported as non-operating reve nues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non- operating expenses.

50 130 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, and Equity

Cash Deposits and Investments

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

The City pools cash and investments from all funds fo r the purpose of increasing income through investment activities. Highly liquid money market investments with ma turities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools . Market value is used as fair value for those securities for which market quotations are readily available.

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

Interfund Receivables and Payables

During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds.” Short-term interfund loans are reported as “interfund receivables and payables.” Long-term interfund loans (noncurrent portion) are reported as “advances from and to other funds.”

Interfund receivables and payables between funds within go vernmental activities are eliminated in the Statement of Net Position. See Note 3 for details of interfund transactions, including receivables and payables at year-end.

Receivables

In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received.

Allowances of uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for the gove rnmental activities include property taxes, sales and use taxes, franchise taxes, intergovernmental subventi ons, interest earnings, parame dic service, and expense reimbursements.

51 131 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Business-type activities r
eport service charges and expense re imbursements as its major re ceivables. In the fund financial statements, significant receivables in governmental funds include revenue accruals such as property tax, sales tax, transient occupancy tax, franchise tax, and intergovernmental subventions since they are usually both measurable and available. Non-exchange transactions collectible but not available are deferred in the fund financial statements in accordance with the modified accrual basis, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available.

Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Customer and intergovernmental accounts receivable comprise the majority of proprietary fund receivables.

Inventories
The cost of other consumable materials and supplies on ha nd are immaterial to the financial statements, and the City has therefore chosen to report these items as expenditures/expenses at the time of purchase.

Capital Assets
The City's assets are capitalized at historical cost or estim at ed historical cost if actual is available. Policy has set the capitalization threshold for reporting capital assets at $10,000. Contributed capital assets are valued at their estimated acquisition value on the date contributed. Dona ted works of art and similar items and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value. Public domain (infrastructure) capital assets include roads, bri dges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems and are capitalized at $100,000.

The accounting treatment of property, plant and equi pment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fu nd operations and whether they are reported in the government-wide or fund financial statements.

Government-Wide Statements
Prior to July 1, 2003, governmental funds’ infrastruct ure assets were not capitalized. These assets (back to July 1, 1980) have been valued at estimated historical cost.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in th e Statement of Activities, with accumulated depreciation reflected in the Statemen t of Net Position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows:

Infrastructure 25 – 40 years
Buildings and improvements 20 – 30 years
Machinery and equipmen
t 3 – 15 years
Water 5 – 40 years
Stormwater
Wastewater
Cable
television
5 – 40 years
5 – 40 years
5 – 40 years
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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fund Financial Statements

In the fund financial statements, cap ital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements.

Long-Term Debt

The accounting treatment of long-term debt depends on whether the asset s are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

All long-term debt to be repaid from governmental a nd business-type resources is reported as a liability in the government-wide statements. The long-term debt consis ts of bonds, capital leases, compensated absences and a liability for claims.

Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as revenue and payment of principa l and interest reported as expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government-wide statements.

Compensated Absences

The City’s policies regarding vacation time and compen satory time permit employees to accumulate earned but unused leave. The current portion of th is debt is estimated based on histori cal trend and funded in the individual fund generating the liability with the long-term portion shown as a long-term liability.

The changes of the compensated absences were as follows:

G overnm ental
Activities
Business-Type
Activities Total
Beginning Balance $2,694,310 $487,695 $3,182,005
Additions 650,707 131,514 782,221
Payments (474,990) (37,408) (512,398)
Ending Balance $2,870,027 $581,801 $3,451,828
Current Portion $504,314 $102,661 $606,975

Pensions

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

53 133 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Defe
rred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet reports a separate s ection for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acqui sition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Revenues, Expenditures, and Expenses
Property Tax
Under California law, property taxes are assessed and coll ected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are receivable from the county within sixty days after year end.

Lien Date January 1
Levy Date
Due Dates
July 1
November 1 and February 1
Delinquent Date December 10 and April 10
Property taxes attach annually as an enforceable lien as of January 1. Taxes are levied on July 1, are payable in two installments, and are delinquent at December 10 and Ap ril 10. All general property taxes are then allocated by the San Mateo County Controller’s O ffice to the various taxing entities in accordance with Proposition 13.

Property tax revenues are recognized when levied to the ex tent that they are measurable and that they will be received in 60 days. Since the County utilizes the Teeter system of allocation, all property tax revenue is allocated to the City and accounted for as revenue in the fiscal year that it is levied.

Expenditures/Expenses
In the government-wide financial statements, expenses are classified by function for both governmental and business-type activities.

In the fund financial statements, expenditures are classified as follows:

Governmental funds – by character
Current (further classified by function)
Capital outlay
Debt service
In the fund financial statements, governmental funds report expenditures of current financial resources. 54 134 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Interfund Transfers

Resources are reallocated between funds by reporting them as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between i ndividual governmental funds ha ve been eliminated with internal balances (between governmental and business-type activities) remaining on the statement of net position.

Prior Year Comparative Financial Information

The basic financial statements included certain prior-year summarized compar ative information. This information has been included for comparison purposes and does not represent a complete presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the City’s prior year financial statements, from which this selected data was derived. Certain minor reclassifications of prior year data may have been made in order to enhance their comparability with current year figures.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assu mptions that affect the reported amounts of assets, liabilities, revenues and expenditures/expenses during the repo rting period. Actual results could differ from those estimates.

Budgetary Policies

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Public meetings are conducted to obtain public comments. The City Council annually adopts the budget for the ensuing fiscal year prior to July 1
st.

2. Legally adopted budgets and formal budgetary integration is em ployed as a management control device during the year for all Governmental, Proprietary and Fiduciary fund types.

3. Budgets for the General, Special Revenue, and Capital Project Funds are adopted on a basis consistent with accounting principles genera lly accepted in the United States of America (GAAP).

4. Under Article XIII B of the California Constitu tion (the GANN Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, th e excess must either be refunded to the State Controller, returned to the taxpayers through revi sed tax rates or revised fees schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2021 based on the calculations by C ity Management, proceeds of taxes did not exceed the appropriations limit.

5. Budgeted revenue and expenditure amounts represent the original budget modified by adjustments authorized during the year.

55 135 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

6. Appropriations, except for those encumbered under pu rchase orders, lapse at the end of the fiscal year. Encumbered amounts are then carried over for the coming year.

7. Budgeted appropriations for the va rious governmental funds become effective each July 1. The City Council may amend the budget during the fiscal year. The legal level of budgetary control has been established at the fund level.

8. Budgets are adopted on a basis consistent w ith generally accepted accounting principles (GAAP) for all governmental funds.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy establishe d by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniqu es used to measure fair valu e into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

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

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

Fund Reclassification

In January 2017, GASB issued GASB Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accoun ting and financial reporting purposes and how those activities should be reported. This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial funds. Cust odial funds generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. The provisions of this Statement were implemented during fiscal year 2021. As part of th e implementation of this Statement, it was determined that the Recology San Bruno Fund, previously reported as an Agency Fund, be accounted for and reported as a Custodial Fund.

Closed Fund

The Project Development Fund, previously reported as an Agency Fund, was closed as of June 30, 2021.

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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 2 - CASH AND INVESTMENTS
The City pools cash from
all sources and all funds, ex cept certain specific investments within funds and cash with fiscal agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time.

The City and its fiscal agents invest in individua l investments and in investment pools. Individual investments are evidenced by specifi c identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by the City’s fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form.

The City’s investments are carried at fair value, as required by generally accepted accounting principles.

The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end.

A. Cla
ssification
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements.

Cash and investments as of June 30, 2021, consist of the following:

Statement of Net Position Am ount
Cash and investments $133,272,753
Restricted cash and investments held by fiscal agents 4,264,819 Total cash and investm ents in prim ary governm ent 137,537,572 Statements of Fiduciary Net Position
Cash and investm ents:

Private Purpose Trust Funds 2,207,987
Custodial Funds 531,720
Restricted cash and investments held by fiscal agents 5 Total cash and investm ents in fiduciary 2,739,712
Total cash and investments $140,277,284
Cash and investments with original maturities of thre e months or less are treate d as cash and equivalents for the purpose of preparing Proprie tary Fund statements of cash flows. Also, each Proprietary Funds’ portion of the City’s overall cash and investment pool is treated as cash and equivalents since these amounts are in substance demand deposits.
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NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 2 - CASH AND INVESTMENTS (Continued)
B.

Investments Authorized by the California Government Code and the City’s Investment Policy Investments are reported at fair value. California statutes authorize cities to invest idle or surplus funds in a variety o
f credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Finan
cial Affairs. The table below identifies the investment types that are authorized for the City by the Califo
rnia Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, and concentration of credit risk.

During th
e year ended June 30, 2021, the City’s permissible investment s included the following instruments:

Minimum Maximum
Maximum Credit Percentage of Investment in Authorized Investment Type Maturity Quality Portfolio One Issuer U.S. Treasury obligations
5 years None None None
U.S. Agency securities 5 years None None None Non-negotiable certificates of deposit 1 years None 15% None LAIF N/A None 24% None
Local government investment pools N/A None 38% None During the year ended June 30, 2021 , the City’s permissible investments for debt service fiscal agents included the following instruments:

Minimum
Maximum
Maximum
Credit Investment in
Authorized Investment Type
Maturity Quality One Issuer
U.S. Treasury obligations
None None None
U.S. Agency securities None None None
Non-negotiable certificates of deposit 1 years None None

L A I F N
/ A N o n e N o n e
Bankers acceptances 1 year P1/A1 None
Local government securities None Highest None
Commercial paper None
P1
None
Investment agreements None None None
Certificates of deposits, savings account, and
Deposit accounts None None None
Money market accounts None Aaa, Aa1 None
Municipal Bonds None A None
The City complied with the provisions of California G overnment Code (or the City’s investment policy, where more restrictive) pertaining to the types of in vestments held, institutions in which deposits were made and security requirements. The City will continue to monitor compliance with applicable statutes pertaining to public deposits and investments.
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NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 2 - CASH AND INVESTMENTS (Continued)

C. Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates whic h will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value is to changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, one of the ways the C ity manages its exposure to interest rate risk is by purchasing a combination of shorter and longer term i nvestments. This allows the City to time cash flows from maturities so that a portion of the portfo lio is maturing or coming close to maturing evenly over time as necessary to provide the cash flow and liquidity needed for operations. The City also manages its interest rate risk by holding most investments to maturity , thus reversing unrealized market gains and losses.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:

C ash and Investm ents 12 Months or less 25 to 60 Months Total U.S. Treasuries & Agencies $35,838,731 $35,838,731
Municipal Bonds 4,585,635 4,585,635
Local Agency Investment Fund $54,890,121 54,890,121
San Mateo County Investment Pool 27,563,003 27,563,003
Certificate of Deposit 526,351 526,351
Money Market Funds 5,214,579 5,214,579
Subtotal Investm ents $87,667,703 $40,950,717 128,618,420 Cash in bank and on hand 11,658,864
Total Cash and Investments $140,277,284

The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are U.S. Treasuries, Federa l Agency obligations, ti me deposits, negotiable certificates of deposits, commercial paper, corporate bonds, and security loans. At June 30, 2021, these investments had a weighted average maturity of 291 days.

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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 2 - CASH AND INVESTMENTS (Continued)

The City invests in the San Mateo County Pooled Investment Fund (SMCPIF), an external investment pool. The pool determines fair value on its invest ment portfolio based on market quotations for those securities where market quotations are readily availabl e, and valuations are based on amortized cost or best estimate for those securities wh ere market value is not readily available. The responsibility for managing the SMCPIF resides with the County Treasurer. The County Board of Supervisors, in consultation with the Treasurer, establishes an eight member County Treasury Oversight Committee pursuant to California Government Code Section 27130. The investment program is supervised within the guidelines set forth in the investment policy de veloped by the Treasurer, reviewed and approved annually by the County Treasury Oversight Committee and the County Board of Supervisors.

The SMCPIF fair value factor is determined by dividing all SMCPIF participants’ total aggregate fair value by total aggregate amortized cost resulting in a factor of 1.0037. The financial statements for the San Mateo County are available in the San Mateo County website at www.co.sanmateo.ca.us.

D. Fair Value Hierarchy

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

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2021:

Investments by Fair Value Level: Level 2 Total
U.S. Treasuries & Agencies $35,838,731 $35,838,731
Municipal Bonds 4,585,635 4,585,635
Certificate of Deposit 526,351 526,351
Money Market Mutual Fund 5,214,579 5,214,579
Totals $526,351 46,165,296
Investments Measured at Amortized Cost:

Local Agency Investment Fund (LAIF) 54,890,121
San Mateo County Investment Pool 27,563,003
Totals 82,453,124
Total Investments $128,618,420

Federal Agency Securities, classified in Level 2 of the fair value hierarchy are valued using a quoted price in a non-active market for an identical asset. Municipal Bonds, classified in Level 2 of the fair value hierarchy are valued using yield to maturity quoted price. These prices are obtained from various pricing sources by the custodian bank. The California Local Agency Investment Fund (LAIF) and San Mateo County Investment Pool are classified as exempt in the fair value hierarchy, as they are valued at amortized cost, which is exempt from being classifi ed under GASB 72. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian bank.
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NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 2 - CASH AND INVESTMENTS (Continued)
E. Credit
Risk
Credit risk is the risk that an issu er of an investment will not fulfill its obligation to the holder of th e investment. This is measured by
the assignment of a rating by a nationally recognized statistical rating organization.

As disclosed in Note 2B, State la w and the City’s investment Policy limit the City’s investments to certain minimum credit ratings. Mi nimal credit ratings are also established by the bond indentures in
the case of cash and investments held by fiscal agents. Presented below is the actual rating as of June 30, 2021, for each investment type as provided by Moody’s inv estment rating system:

Investment Type Aaa/Aaa-mf Aa2 Total
U.S. Treasuries & Agencies $35,838,731 $35,838,731
Municipal Bonds 1,985,880 $2,599,755 4,585,635
Money Market Funds 5,214,579 5,214,579
Totals $43,039,190 $2,599,755 45,638,945
Not Rated:

Certificate of Deposit 526,351
Local Agency Investment Fund (LAIF) 54,890,121
San Mateo County Investment Pool 27,563,003
Total Investments $128,618,420
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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 3 - INTERFUND TRANSACTIONS
A. Transfers
Among Funds
With Council approval, resources may be transferred from one City fund to another. Transfers between funds during the fiscal year ended June 30, 2021, were as follows:

Am ount
Fund Receiving Transfers Fund Making Transfers Transferred G eneral Fund Non-Major G overnm ental Funds $2,739,409 (A) & (B) Street Improvement Capital Projects Fund 100,000 (B)
Stormwater Enterprise Fund 298,642 (B)
Street Improvement Capital Projects Fund General Fund 200,450 (C) Non-Major Governmental Funds 4,810,556 (C)
Water Enterprise Fund Non-Major Governmental Funds 25,000 (B) Stormwater Enterprise Fund General Fund 450,000 (C)
Wastewater Enterprise Fund Non-Major Governmental Funds 25,000 (B) Non-Major G overnm ental Funds G eneral Fund 2,405,549 (C) & (D) Street Improvement Capital Projects Fund 765,287 (B)
Non-Major Governmental Funds 850,889 (B) & (C)
Facilities Maintenance Internal Service Fund General Fund 90,000 (A) Total Interfund Transfers $12,760,782
(A) Augm ent various City Services
(B) Defund capital projects
(C) Capital project funding
(D) Fund debt service ex penditure
B. Int
erfund Balances
Interfund balances arise in the normal course of business. Amounts due to or due from other funds reflect interfund balances fo
r services rendered or short-term loans expected to be repaid in the next fiscal year. At June 30, 2021, interfund balances comprised the following:

Due To Other Funds Due From Other Funds Am ount
G eneral Fund FederalState G rant Special Revenue Fund 27,135 C. Int
erfund Advances
Am ount of
Fund Receiving Advance Fund Making Advance Advance
CityNet Services Enterprise Fund General Fund $14,415,651 During
fiscal year 2016, the General Fund loaned th e CityNet Services Enterprise Fund $1,170,000 for a Fiber to Home project at the Shelter Creek Condominiums. The advance accrues interest at a .525% annual interest rate for seven years. At June 30, 2021, the balance of the adva nce was $324,643. For multiple fiscal years, CityNet Services Enterprise Fund has ha d a negative cash balance. The City is developing a plan to reduce the net operating loss and repay the General Fund the balance due. At June 30, 2021, the cash balance due to the General Fund was $14,091,008.
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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 4 - CAPITAL ASSETS

A. Capital Asset Additions and Retirements

Capital assets as of June 30, 2021 comprise:

Balance Balance
July 1, 2020 Additions Retirements Transfers June 30, 2021 Governmental activities
Capital assets not being depreciated:

Land $4,649,235 $4,649,235
Construction in progress 5,429,970 $2,534,684 7,964,654 Total capital assets not being depreciated 10,079,205 2,534,684 12,613,889 Capital assets being depreciated:

Buildings and improvements 16,603,403 16,603,403
Machinery, improvements and equipment 17,198,512 391,579 ($111,782) $24,975 17,503,284 Infrastructure 99,188,781 99,188,781
Total capital assets being depreciated 132,990,696 391,579 (111,782) 24,975 133,295,468 Less accumulated depreciation for:

Buildings and improvements 9,191,237 515,051 9,706,288
Machinery, improvements and equipment 11,871,530 948,016 (82,791) 24,975 12,761,730 Infrastructure 51,486,274 2,410,622 53,896,896
Total accumulated depreciation 72,549,041 3,873,689 (82,791) 24,975 76,364,914 Net governmental-type activities
Capital assets being depreciated 60,441,655 (3,482,110) (28,991) 56,930,554 Governmental activity capital assets, net $70,520,860 ($947,426) ($28,991) $69,544,443

Balance Balance
July 1, 2020 Additions Transfers June 30, 2021
Business-type activities:

Capital assets not being depreciated:

Land $576,842 $576,842
Construction in progress 12,827,848 $6,813,865 ($7,307,245) 12,334,468 Total capital assets not being depreciated 13,404,690 6,813,865 (7,307,245) 12,911,310 Capital assets being depreciated:

Buildings and improvements 95,953,796 59,115 7,307,245 103,320,156 Machinery, improvements and equipment 33,466,120 24,975 33,491,095 Sewer plant 27,942,170 1,325,736 29,267,906
Total capital assets being depreciated 157,362,086 1,384,851 7,332,220 166,079,157 Less accumulated depreciation for:

Buildings and improvements 27,479,363 2,986,668 30,466,031 Machinery, improvements and equipment 25,192,060 1,163,343 24,975 26,380,378 Sewer plant 16,096,297 1,000,961 17,097,258
Total accumulated depreciation 68,767,720 5,150,972 24,975 73,943,667 Net capital assets being depreciated 88,594,366 (3,766,121) 7,307,245 92,135,490 Business-type activity capital assets, net $101,999,056 $3,047,744 $105,046,800

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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 4 - CAPITAL ASSETS (Continued)
B. Depreciation
Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allo
cated to each function or program are as follows:

Governmental Activities Amount
General government $549,468
Public safety 502,252
Public works 28,735
Streets 2,393,270
Parks and recreation 370,873
Library 14,680
Community and economic development 10,432
Internal service funds 3,979
Total $3,873,689
Business-Type Activities Amount
Water $1,827,153
Stormwater 225,857
Wastewater 1,688,636
SSF Sewer Plant 1,000,961
CityNet 408,365
Total $5,150,972
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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 5 - LONG-TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.

The City’s Long-Term Debt
The following is a summary of long-term debt transactions for the year ended June 30, 2021:

Amount
Balance Ba
lance due
within
June 30, 2020 Retirements June 30, 2021 one year
Governmental Activity - Bonds:
2013 Pension Obligation Bond $7,085,000 ($905,000) $6,180,000 $940,000 Discount on Pension Obligation Bond (136,626) 19,518 (117,108) (19,518) Total Governmental Activities - Bonds 6,948,374 (885,482) 6,062,892 920,482 Governmental Activity - Direct Borrowings:
2017 Capital Lease Obligation 269,032 (178,510) 90,522 90,522 2018 Capital Lease Obligation 980,344 (314,625) 665,719 326,629 Total Governmental Activities - Direct Borrowings 1,249,376 (493,135) 756,241 417,151 Total Governmental Activities $8,197,750 ($1,378,617) $6,819,133 $1,337,633 Amount
Balance Ba
lance due
within
Business-Type Activity - Bonds: June 30, 2020 Retirements June 30, 2021 one year 2017 Water Revenue Bond $11,285,000 ($215,000) $11,070,000 $220,000 Premium of Revenue Bond 1,163,534 (41,555) 1,121,979 41,555 2017 Wastewater Revenue Bond 23,785,000 (455,000) 23,330,000 470,000 Premium on Revenue Bond 2,450,949 (87,534) 2,363,415 87,534 2013 Wastewater Refunding Revenue Bond 5,280,000 (310,000) 4,970,000 320,000 Premium on Refunding Bond 232,383 (17,875) 214,508 17,875 Total Business-Type Activities - Bonds 44,196,866 (1,126,964) 43,069,902 1,156,964 Business-Type Activity - Direct Borrowing:

Due to City of South San Francisco
1997 Loan 1,680,517 (545,857) 1,134,660 560,050
2007 Loan 2,525,314 (395,338) 2,129,976 405,221
Total Business-Type Activities - Direct Borrowings 4,205,831 (941,195) 3,264,636 965,271 Total Business-Type Activities $48,402,697 ($2,068,159) $46,334,538 $2,122,235 A. Governmental Activities:
2013 Pension Obligation Bonds
During Janua
ry 2013 the City issued $13,175,000 in Series 2013 Pension Obligation Bonds in order to pay-off amounts owed for the City’s CalPERS “side-fund.” Principal payments are due annually on June 1 while interest payments are due
semi-annually on June 1 and December 1. True interest cost is 4.05%.

The Pension Obligation Bond debt repr
esents a refunding of a debt that the City owed to CalPERS. The issuance of the Pension O
bligation Bonds reduced the interest rate on this debt from 7.5% to just ov er 4%
. The debt service payments are funded through savings achieved in the City’s employer contribution rate, which decreased from 36.604% to 24.706% after th e payoff of the side fund. Payments are made out of t
he debt service fund.
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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 5 - LONG-TERM DEBT (Continued)

The Bonds are payable from any source of legally available funds of the City. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the co nditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or co mpetent jurisdiction shall assume custody or control of the City. During fiscal year 2020-21, the City made principal and interest pa yments totaling $905,000 and $271,750, respectively. The bonds mature on June 1, 2027.

The annual debt service requirement on the bonds is as follows:

For The Year
Ending June 30 Principal Interest Total
2022 $940,000 $240,075 $1,180,075
2023 970,000 207,175 1,177,175
2024 1,005,000 170,800 1,175,800
2025 1,045,000 130,600 1,175,600
2026 1,090,000 88,800 1,178,800
2027 1,130,000 45,200 1,175,200
Subtotal 6,180,000 882,650 7,062,650
Less Discount (117,108) (117,108)
Total $6,062,892 $882,650 $6,945,542
2013 Pension Obligation Bonds

Capital Lease Obligations

During April 2017, the City entered into a $1,873,846 capital lease-purchase agreement with JP Morgan Chase Bank, N.A. to finance a fire engine and a fire truck. Principal and interest payments are due semi- annually on April 28 and October 28 with an interest rate of 1.89%. Payments are made out of the debt service fund. During fiscal year 2020-21, the City made principal and interest payments totaling $178,510 and $4,245, respectively. The lease purchase agreement was paid in full on October 28, 2021.

The annual debt service requirement on the capital lease obligation is as follows:

For The Y ear
Ending June 30 Principal Interest Total
2022 $90,522 $855 $91,377
Total $90,522 $855 $91,377
2017 Capital Lease Obligation

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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 5 - LONG-TERM DEBT (Continued)
During October 2018, the
City entered into a $1, 630,339 capital lease-purchase agreement with Key Government Finance, Inc., to purchase router e quipment for the Cable Enterprise Fund. Principal payments are due annually on November 26 with an interest rate of 3.75%. The debt payments are made by the General Fund until the Cable Fund recogni zes adequate revenue to pay for the annual lease- purchase payments. During fiscal year 2020-21, the City made principal and inte rest payments totaling $314,625 and $37,401, respectively. The lease-purchase agreement will be paid in full on November 26, 2022.

The annual debt service requirement on the capital lease obligation is as follows:

For The Y ear
Ending June 30 Principal Interest Total
2022 $326,629 $25,398 $352,027
2023 339,090 12,937 352,027
Total $665,719 $38,335 $704,054
2018 Capital Lease Obligation
B. Busines
s-Type Activities:
2017 Water Revenue Bonds
In December 2017, the San Bruno Public Financi ng Authority issued $11.62 million princi pal amount of Series 2017 Water Rev
enue Bonds to finance the construction of certain improvements to the Water System. Principal payments commence on July
1, 2018 and are payable annually on July 1 thereafter.

Interest payments are payable on July
1st and January 1st of each year, commencing July 1, 2018.

The Bonds are payable solely from the
Net Revenues of the Water System. The bond covenants contain events of default that require the revenue of the Ci ty to be applied by the Trustee as speci fied in the terms of the agreement if any of the following cond i
tions occur: default on debt service payments; th e
failure of the
City to observe or perform the cond itions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or comp etent jurisdiction shall assume custody or control of the City. During fiscal year 2020-21,
the City made principal and interest payments totaling $215,000 and $46
1,650, respectively. The bonds mature on July 1, 2047. 67 147 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 5 - LONG-TERM DEBT (Continued)

The annual debt service requirement on the bonds is as follows:

For The Y ear
Ending June 30 Principal Interest Total
2022 $220,000 $452,850 $672,850
2023 230,000 443,650 673,650
2024 240,000 434,050 674,050
2025 250,000 421,550 671,550
2026 260,000 408,550 668,550
2027-2031 1,525,000 1,821,500 3,346,500
2032-2036 1,930,000 1,405,350 3,335,350
2037-2041 2,315,000 1,012,200 3,327,200
2042-2046 2,815,000 491,200 3,306,200
2047-2048 1,285,000 26,200 1,311,200
Subtotal 11,070,000 6,917,100 17,987,100
Plus Premium: 1,121,979 1,121,979
Total $12,191,979 $6,917,100 $19,109,079
2017 Water Revenue

2017 Wastewater Revenue Bonds

In December 2017, the San Bruno Public Financing Au thority issued $24.47 million principal amount of Series 2017 Wastewater Revenue Bonds to finance the construction of certain improvements to the Wastewater System. Principal payments commence on July 1, 2018 and are payable annually on July 1 thereafter. Interest payments are payable on July 1 st and January 1 st of each year, commencing July 1, 2018.

The Bonds are payable solely from Net Revenues of the Wastewater System. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the co nditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or co mpetent jurisdiction shall assume custody or control of the City. During fiscal year 2020-21, the City made principal and interest payments totaling $455,000 and $972,850, respectively. The bonds mature on July 1, 2047.

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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 5 - LONG-TERM DEBT (Continued)

The annual debt service requirement on the bonds is as follows:

For The Y ear
Ending June 30 Principal Interest Total
2022 $470,000 $954,050 $1,424,050
2023 485,000 934,650 1,419,650
2024 505,000 914,450 1,419,450
2025 525,000 888,200 1,413,200
2026 550,000 860,700 1,410,700
2027-2031 3,205,000 3,838,250 7,043,250
2032-2036 4,065,000 2,962,300 7,027,300
2037-2041 4,880,000 2,133,600 7,013,600
2042-2046 5,930,000 1,035,800 6,965,800
2047-2048 2,715,000 55,400 2,770,400
Subtotal 23,330,000 14,577,400 37,907,400
Plus Premium: 2,363,415 2,363,415
Total $25,693,415 $14,577,400 $40,270,815
2017 Wastewater Revenue

2013 Wastewater Revenue Refunding Bonds

In August 2013, the City paid off the remaining balance or $7.56 million of 2002 Certificates of Participation by placing the proceeds of new Wastew ater Revenue Refunding Bonds in an irrevocable trust to provide for all future debt service paymen ts on the old bonds. All of the amounts held in the escrow fund were applied to pay the prepayment pri ce of the 2002 certificates and, therefore, the 2002 Certificates of Participation were paid-off as of June 30, 2014.

The Bonds are payable solely from Net Revenues of the Wastewater System. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the c onditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or comp etent jurisdiction shall assume custody or control of the City. During fiscal year 2020-21, the City made principal and interest payments totaling $310,000 and $222,600 respectively. The bonds mature on July 1, 2032.

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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 5 - LONG-TERM DEBT (Continued)

The annual debt service requirement on the bonds is as follows:

For The Y ear
Ending June 30 Principal Interest Total
2022 $320,000 $211,800 $531,800
2023 335,000 196,726 531,726
2024 345,000 179,476 524,476
2025 365,000 161,224 526,224
2026 380,000 142,224 522,224
2027-2031 2,210,000 426,725 2,636,725
2032-2033 1,015,000 23,400 1,038,400
Subtotal 4,970,000 1,341,575 6,311,575
Plus Premium: 214,508 214,508
Total $5,184,508 $1,341,575 $6,526,083
2013 Wastewater Revenue Refunding

City of South San Francisco Sewer Plant Agreement

The City entered into a joint-ownership agreement with the City of South San Francisco (SSF) to operate a water quality control plant and appurtenant fac ilities to service both communities. The agreement was entered into in January 1947 and has numerous sub sequent amendments that detail various aspects in sharing the capital investment (including related debt service) and operating expenses related to the joint sewage plant. Operating costs of the enterprise are shared in accordance with a formula and division of operation and maintenance cost set forth in an agreement dated April 3, 1972. The most recent arrangement indicates that the City shares in 25.82% of the plant capacity. There are no separately issued financial statements for this agreement.

To finance the expansion of the water quality cont rol plant, the State Water Resources Control Board issued loans directly to SSF totaling $81,253,444 ($8.8 million in October 1994, $50.6 million in August 2003 and $21.9 million in April 2 007). Loan proceeds were disbur sed as the projects progressed and debt service payments commenced one year after proj ect completion. As a result of the joint ownership agreement, the City is obligated to SSF for its portio n of the loans. The City’s portion that was financed through this agreement totaled $19,170,177 depreciable and payable over a 25-year period. During fiscal year 2020-21, the City made principal and inte rest payments totaling $941,195, and $106,826, respectively. The loans will be paid in full on August 1, 2022 and April 30, 2026.

70 150 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 5 - LONG-TERM DEBT (Continued)

The City’s annual debt service requirements on the loans are as follows:

For The Year
Ending June 30 Principal Interest Total
2022 $560,050 $29,501 $589,551
2023 574,610 14,939 589,549
Total $1,134,660 $44,440 $1,179,100
1997 Loan South San Francisco

For The Year
Ending June 30 Principal Interest Total
2022 $405,221 $53,250 $458,471
2023 415,352 43,119 458,471
2024 425,736 32,735 458,471
2025 436,379 22,092 458,471
2026 447,288 11,182 458,470
Total $2,129,976 $162,378 $2,292,354
2007 Loan South San Francisco

C. Fiduciary Funds:

The following is a summary of the Redevelopm ent Obligation Retirement Fund’s long-term debt transactions for the year ended June 30, 2021:

Amount
Balance Balance due within
June 30, 2020 Retirements June 30, 2021 one year
2019 Lease Revenue Bonds $4,380,000 $325,000 $4,055,000 $340,000 Premium on Refunding Bond 576,642 52,422 524,220 52,422 Total Fiduciary Activity $4,956,642 $377,422 $4,579,220 $392,422

2019 Lease Revenue Bonds

In 2000, the City issued City of San Bruno Certif icates of Participation, Series 2000 (Police Facility Financing) in the original principal amount of $9,6 00,000 to fund the construction of the Police Facility.

In March 2019, the City paid off the remaining balance or $6 million of 2000 Certificates of Participation by placing the proceeds of the new Lease Revenue Bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. All of the amounts held in the escrow fund were applied to pay the prepayment price of the 2000 Cer tificates and, therefore, the 2000 Certificates of Participation were paid off as of June 30, 2019.

Principal payments are due annually on May 1 and interest payments are due semi-annually on May 1 and November 1. Interest rates range from 4.00% to 5.00%. During fiscal year 2020-21, the City made principal and interest payments totaling $325,000, and $184,650, respectively.

71 151 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 5 - LONG-TERM DEBT (Continued)
The Bonds a
re payable from any source of availabl e funds of the City. The bond covenants contain events of default that require the revenue of the C ity to be applied by the Trustee as specified in the terms of the agreement if any of the following cond itions occur: default on debt service payments; the failure of the City to observe or perform the cond itions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or co mpetent jurisdiction shall assume custody or control of the City.

For The Year 2019 Lease Revenue Bonds
Ending June 30 Principal Interest Total
2022 $340,000 $171,650 $511,650
2023 350,000 158,050 508,050
2024 365,000 144,050 509,050
2025 375,000 129,450 504,450
2026 395,000 114,450 509,450
2027-2031 2,230,000 317,450 2,547,450
Subtotal 4,055,000 1,035,100 5,090,100
Add Premium 524,220 524,220
Total $4,579,220 $1,035,100 5,614,320
NOT
E 6 – NET POSITION AND FUND BALANCES
Net Po
sition is measured on the full accrual basis while Fund Balance is measured on the modified accrual basis.

A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows, if any, over all its liabilities and deferred inflows, if any, regardless of fund. Net Po sition is divided into three captions. These captions apply only to Net Position, which is de
termined only at the Government-wide level, and are described below:

Net Invest
ment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the out standing balance of any debt issued to finance these assets.

Restrict
ed describes the portion of Net Position which is r estricted as to use by the terms and conditions of agreements with outside parties, governmental regul
ations, laws, or other restrictions which the City
cannot unilat
erally alter.

Unrestri
cted describes the portion of Net Position which is not restricted to use. 72 152 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 6 – NET POSITION AND FUND BALANCES (Continued)
B. Fund Balances
The City’s fund balances are classified i
n accordance with Governmental Acco unting Standards Board Statement Number 54 (GA
SB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in th e following
order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendabl
es represents balances set aside to indicate items that do not represent available, spendable resources even though they are a component of assets. F und balances required to be maintained intact, such as Permanent Funds, and assets
not expected to be converted to cash, such as prepaids, notes receivable, and land held for resale are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restrict
ed fund balances have external restrictions impo sed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires th e resources to be used only for a specific purpose.

Nonspendabl
e amounts subject to restrictions are included along with spendable resources.

Committed fund balances have constraints imposed by r esolution of the City Council which may be altered only
by resolution of the City Council. Nonspendable amounts subject to council commitments are included along with spendable resources.

Assigned fund balances are amounts constrained by the City ’s intent to be used for a specific purpose, but are neithe
r restricted nor committed. Intent is expressed by the City Council or its designe e and may be changed a
t the discretion of the City Council or its designee. This cate gory includes encu mbrances; Nonspendables, when it i
s the City’s intent to use proceeds or collections for a specifi c purpose, and residual fund balances, if
any, of Special Revenue, Capital Projects and Debt Service Funds which have not been rest
ricted or committed. Through a Coun cil Resolution, the City Council has de signated the City Manager to determine the amount of assigned fund balances.

Unassigned f
und balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual General Fund bala nce and residual fund deficits, if any, of other governmental funds.

C. Spending Order Policy
When an expenditure is incurred fo r purposes for which both restricted a nd unrestricted fund balance i s
available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assi
gned, or unassigned fund balances are available, the City considers amounts to have been spent first out
of committed funds, then assigned funds, and finall y unassigned funds, as needed, unless the City Council has provided ot
herwise in its commitment or assignment actions.
73 153 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 6 – NET POSITION AND FUND BALANCES (Continued)
D. Encumbranc
es
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Encumbrance accounting is utilized to the extent necessary to ensure effective budgetary control and accountability and to facilitate effective cash pla nning and control. Unexpended appropriations lapse at year-end and must be re-appropriated
in the following year. At year end, the amount of encumbrances expected to b
e honored upon performance by the vendor in the next year were as follows:

Governmental Funds Amount
Major Funds:

General Fund $693,197
Street Improvement Capital Projects 145,816
Total Major Funds 839,013
Non-Major Funds:

Parks and Facilities Capital Improvement 3,318,963
Other non-major funds 76,607
Total Non-Major Funds 3,395,570
Total $4,234,583
74 154 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 6 – NET POSITION AND FUND BALANCES (Continued)

Detailed classifications of the City’s fund balances, as of June 30, 2021, are below:

Street Improv ement Other
General Capital Projects Gov ernmental
Fund Balance Classifications Fund Fund Funds Total
Nonspendables:

Advances to other funds $14,415,651 $14,415,651
Total Nonspendable Fund Balances 14,415,651 14,415,651
Restricted for:

Di saster recovery $913,261 913,261
Special Revenue Program s 13,360,321 13,360,321
Capital Projects $4,997,078 2,811,174 7,808,252
Affordable Housing Activities 700,649 700,649
Debt Service 55
Total Restricted Fund Balances 4,997,078 17,785,410 22,782,488 Assigned to:

G eneral Fund Reserve 12,338,243 12,338,243
G eneral Fund Contingency 5,485,682 5,485,682
Emergency Disaster Reserve 2,026,454 2,026,454
Capital Im provem ent/One-Tim e
Initiative Reserve 9,864,953 9,864,953
Encumbrances 693,196 693,196
Total Assigned Fund Balances 30,408,528 30,408,528
Unas s i g ne d (9,442,918) (16,928) (9,459,846)
Total Unassigned Fund Balances (9,442,918) (16,928) (9,459,846) Total Fund Balances $35,381,261 $4,997,078 $17,768,482 $58,146,821

75 155 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 6 – NET POSITION AND FUND BALANCES (Continued)
E. Fund Balance Policies
The City established a rese
rve policy in January 2013 by resolution. The policy, based on a risk analysis specific to the City and other considerations such as the size of the City, bu dget practices, and debt levels, establi
shes targeted levels for the General Fund Reserve (25% of budgeted expenditures), General Fund Contingency (minim um $1,500,000) and Capital Improve ment/One-Time Initiati ve Reserve (minimum $5,000,000).

The actual reserve levels are adopted by resolution with each annual budget, or as recommended by the Finance Director based upon an up date of the City’s fiscal needs. As the City Council and
management can only use reserves for pur poses consistent with the pur poses described in the policy, t
hese reserve amounts are reported as assignments of the General Fund’s balance.

The aggregate balance of the General F
und’s assigned fund balance was $30,408,528 as of June 30, 2021.

The breakdown is shown below:

The General
Fund Reserve can only be utilized throu gh resolution of the City Council. Appropriations of these funds are res
erved for the following situatio ns: A decrease in revenues in excess of 5% of total budgeted Ge
neral Fund revenues within one year, th e loss of revenues from another govern ment entity, and one-time, non-recurring initiatives of the City Counc il deemed of significant importance to the City.

The balance at June 30,
2021 was $12,338,243.

The General
Fund Continency Reserve can be u tilized through resolution for a budget appropriation deemed appropriate by City Council. The balance at June 30, 2021 was $5,485,682.

The Emergency Disaster Reserve is intended to be ut ilized in the event of a declaration of emergency that requires the expenditure of funds outside of the adopted budget. The Emergency Disast er Reserve can only be utilized through resoluti
on of the City Council declaring an emergency. Upon such declaration, it would be the intent of the City to utilize the Emergency Disaster Reserve for all costs associated with the City’s response to the em ergency situation prior to any other reserve funds. The
balance at June 30, 2021 was $2,026,454.

The Capital
Improvement/One-Time Initiative Reserve Fund is available for the capital improvement program projects
and initiatives of significant impor tance to the City that have no other dedicated funding source. These projects include improvements to City facilities, parks, and technology. Th e balance at Ju
ne 20, 2021 was $9,864,953.

Encumbrances represent commitments related to contracts not yet performed and purchase orders not yet filled. The total encumbrances at June 30, 2021 was $693,196.

F. Net Position Deficits
The City has
a deficit net position of $17,878,960 in the CityNet Services Enterprise Fund, which will be funded through additional revenues ex
pected from offe ring higher margin cable and internet packages and expense reductions. T
he City also has deficit net positions of $3,953,068 in th e Self Insurance Internal Service Fund and $16,
928 in the Federal/Sta te Grants Special Revenue Fund, whic h will be funded b
y future cost allocations from other funds and future revenues, respectively. 76 156 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 7 - RISK MANAGEMENT
The City par
ticipates in the PLAN JP A, a joint powers authority establis hed to provide liability insurance coverage, claims, risk management, and legal defense to its participating members. PLAN JPA provides $5,000,000 per occurrence of general liability and automobile coverage, $25,000,000 excess liability coverage per occurrence, $5,000,000 of catastrophic liability coverage, and is responsible for paying the claims in excess of the City’s $100,000 self-insurance retention. PLAN JPA also provides for property coverage up to $1 billion per occurrence subject to lower categorical sub-limits in excess of the City’s self-insurance retention of $5,000 or property and vehicle loss.

The retained earnings/net position of the Self-Insurance Fund, which is categorized as part of Governmental Activities, represent amounts set aside for possible additional losses after providing for actuarially determined liabilities for claims including claims adjustment expenses.

No claim settlement exceeded either this self-insured amount or the insurance coverage for any of the past three years. As of June 30, 2021, claims payable are as follows:

Beginning balance of claims payable $4,936,000
Changes to estimated claims liability 1,329,576
Claims paid (853,576)
Ending balance of claims payable $5,412,000
Current Portion $1,072,204
NOTE 8
- PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
General Info
rmation about the Pension Plans and Summary of Balances by Plan The City participates in the following Pension Plan s administered by the California Public Employees Retirement System (CalPERS):

1. Agent Multiple-Employer Defined Benefit Pensio n Plans (Agent Multiple) for its Miscellaneous employees.

An agent multiple-employer plan is one in which the assets of the partic ipating government employers ar
e pooled for investment purposes but separate accounts are maintained for each indivi
dual employer.

2. Cost-Sharing Multiple-Employer Def ined Benefit Pension Plan (Cost Sharing) for its Safety employees.

A cost-shari
ng multiple-employer defined benefit pe nsion plan is a plan in which the pension obligations to the employees of more than one
employer are pooled and pension plan assets can be
used to pay benefits of the employees of any employer that provides pensions through the plan. 77 157 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 8 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (Continued)

Actuarial Assumptions and Discount Rate

Actuarial Assumptions – For the measurement peri od ended June 30, 2020, the total pension liabilities were determined by rolling forward the June 30, 2019 total pension liability. The June 30, 2020 tota l pension liabilities were based on the following actuarial methods and assumptions:

V aluation Date
Measurement Date
Actuarial Cos t Method
Actuarial Ass umptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table
Post Retirement Benefit Increase
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study an Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

All CalPERS Plans
6/30/2019
6/30/2020
Entry-Age Norm al Cost Method

7.15%
The lesser of contract COLA or 2.5% until
Purchasing Power Protection Allowance Floor
on Purchasing Power applies, 2.5% thereafter

2.50%
V aries by Entry Age and Service
Derived using CalPERS' Mem bership Data for all
Funds (1)

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation were based on the results of a December 2017 actuarial experience study for the pe riod 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website at www.calpers.ca.gov.

Discount Rate - The discount rate used to measure the to tal pension liability for each Plan was 7.15%. The projection of cash fl ows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fu nd (PERF) will be made at the current member contribution rates and that contribution s from employers will be made at st atutorily required rates, actuarially determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefits payments to determine the total pension liability for each Plan.

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.

78 158 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 8 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (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 pe nsion fund cash flows. Using historical and forecasted information for all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single rounded 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 ra te calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class.

Asset Class(a)
Current Target
Allocation
Real Return Years
1 - 10(b)
Real Return Years
11+(c)
Global Equity 50% 4.80% 5.98%
Fixed Income 28% 1.00% 2.62%
Inflation Assets 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real assets 13% 3.75% 4.93%
Liquidity 1% -0.92%
Total 100%
(a) In the CalPERS Annual Comprehensive Financial Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) An expected inflation of 2.0% is used this period.
(c) An expected inflation of 2.92% is used this period.

For purposes of measuring the net pension liability and deferred outflows/inflow s of resources related to pensions and pension expense, information about the fiduciary net position of the plan and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 79 159 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOTE
8 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (Continued)
Below is a
summary of the deferred outflows of res ources, net pension liabilities and deferred inflows of resources, and pension expense by plan:

Deferred Outflows
of Resources
Net Pension
Liability/P roportionate
Share of the Net
P ension Liability
Deferred Inflows
of Resources Pension Expense
Miscellaneous $6,580,234 $48,947,544 $6,043,126
Safety 12,258,547 53,531,797 $2,389,141 8,813,114
Total $18,838,781 $102,479,341 $2,389,141 $14,856,240
A summary of the changes in net pension liability
by plan type as of June 30, 2020 and June 30, 2021 are as follows:

Net P ension Liability Miscellaneous Safety Total - Both P lans 6/30/2020 $45,902,570 $48,942,165 $94,844,735
6/30/2021 48,947,544 53,531,797 102,479,341
Change - Increase (Decrease) $3,044,974 $4,589,632 $7,634,606 CalPERS Miscellaneous
Plan Descrip
tions – All qualified permanent and pr obationary employees are eligible to participate in the City’s Miscellaneous 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 the City’s 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.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who mu st be public employees and be neficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 80 160 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 8 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (Continued)

The Plans provisions and benefits in effect at June 30, 2021, are summarized as follows:

Mi s ce l l ane ous
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit paym ents m onthly for life m onthly for life
Retirement age 50 - 67 52 - 67
Monthly benefits, as a % of eligible com pensation 2.0% to 2.7% 1.0% to 2.5% Required em ployee contribution rates 8% 6.25%
Required em ployer contribution rates 11.686% 11.686%

Beginning in fiscal year 2016, CalPERS collects empl oyer contributions for the miscellaneous plan as a percentage of the payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis or can be prepaid in full no later than July 31. The City’s required contri bution for the unfunded liability in the Miscellaneous Plan was $3,307,713 in fiscal year 2021.

Employees Covered – At June 30, 2021, the following employees were covered by the benefit terms for each Plan:

Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 243 Inactive employees entitled to but not yet receiving benefits 179 Active employees 150
Total 572

Contributions - Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annu al basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by em ployees during the year, with an additional amount to finance any unfunded accrued liability. The City is require d to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Net Pension Liability - The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions a nd methods used to determin e the net pension liability is shown below.

81 161 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOTE 8
- PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (Continued)
Changes in Net Pen
sion Liability – The changes in Net Pension Liabil ity for the Miscellaneous Plan are as follows:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2019 (Measurement Date) $146,063,544 $100,160,974 $45,902,570 Changes in the year:

Service cost 2,514,610 2,514,610
Interest on the total pension liability 10,324,053 10,324,053 Changes of benefit terms
Changes in assumptions
Differences between actual and expected experience 856,075 856,075 Plan to plan resource movement
Contribution - employer 4,630,765 (4,630,765)
Contribution - employee 1,144,051 (1,144,051)
Net investment income 5,016,150 (5,016,150)
Benefit payments, including refunds of employee
contributions (7,569,113) (7,569,113)
Administrative expense (141,202) 141,202
Other Miscellaneous Income/Expense
Net changes 6,125,625 3,080,651 3,044,974
Balance at June 30, 2020 (Measurement Date) $152,189,169 $103,241,625 $48,947,544 Sensitivity of the Proportionate Share of the Net
Pension Liability to Changes in the Discount Rate – The following presents the City’s proporti onate share of the net pension liability, as well as what the City’s proportionate share of the net pension liability would be if it were calculate d using a discount rate that is one- percentage point lower or one-percentage point higher than the current rate:

Miscellaneous
1% Decrease 6.15%
Net Pension Liability $69,133,063
Current Discount Rate 7.15%
Net Pension Liability $48,947,544
1% Increase 8.15%
Net Pension Liability $32,292,966
82 162 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 8 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (Continued)

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2021, the City recognized pension expense of $6,0 43,126. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to m easurem ent date $4,982,588 Differences between actual and ex pected ex perience 851,018 Changes in assum ptions
Net differences between projected and actual earnings on plan investm ents 746,628
Total $6,580,234 $0

A total of $4,982,588 reported as deferred outflows of resources related to contribu tions subsequent to the measurement date will be recognized as a reduction of the ne t pension liability in the year ended June 30, 2022.

Other amounts reported as deferred inflows of resources rela ted to pensions will be recognized as a reduction to pension expense as follows:

Y ear Ended Annual
June 30 Am ortization
2022 $202,790
2023 470,403
2024 511,063
2025 413,390

CalPERS Safety

The City’s Safety Plan is part of the public agency cost-sharing multiple-e mployer defined benefit pension plan (PERF C), which is administered by CalPERS. PERF C c onsists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of i ndividual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employe r defined benefit pension plan regardless of the number of rate plans the employer sponso rs. The City sponsors two rate plans (two police) within the safety risk pool.

Plan Description - All qualified permanent and probationary empl oyees are eligible to participate in the City’s Safety Employee Pension Plans, a cost-sharing multiple employer defined benefit pens ion plan administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plan are established by State statute and the City’s resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions an d membership information that can be found on the CalPERS website.
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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOTE 8
- PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (Continued)
Benefits Provided - Ca
lPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who mu st be public employees and beneficiaries. Benefits are based on years of credited service, equa l to one year of full time employment. Members with five years of total service are eligible to retire at age 50 or 52, depending on hire date, with statutorily reduced benefits. All members are eligible for non-duty disability benefits afte r 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan provisions and benefits in effect at June 30, 2021, are summarized as follows:

Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit paym ents m onthly for life m onthly for life
Retirement age 50 - 55 50 - 57
Monthly benefits, as a % of eligible com pensation 3.0% 2.0%-2.7% Required em ployee contribution rates 9.0% 12.0%
Required employer contribution rates 23.674% 13.044%
Safety
CalPERS collects employer contribut
ions for the cost-sharing plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis or can be prepai d in full no later than July 31. The City’s required contribution for the unfunded liability for the Safety Plan was $3,308,094 in fiscal year 2021.

For the year ended June 30, 2021, contributions to the Safety Plan were as follows:

Safety Plans
Contributions - employer $5,482,002
Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions –
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (includi ng refunds of employee contributions) are recognized when currently due and paya ble in accordance with the benefit terms. Investments are reported at fair value.
84 164 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOTE 8
- PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (Continued)
At June 30, 2021, the City reported ne t
pension liabilities for its proportionate shares of the net pension liability of the Plan as follows:

Proportionate Share
of Net Pension Liability
Safety Plans $53,531,797
Total Net Pension Liability $53,531,797
The City’s net pension liability is measu
red as the proportionate share of each Plan’s net pension liability. The net pension liability is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valua tion as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability was based on the City’s share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability as of June 30, 2019 and 2020 was as follows:

Safety Plans
Proportion - June 30, 2019 0.78401%
Proportion - June 30, 2020 0.80350%
Change - Increase (Decrease) 0.01949%
For the year
ended June 30, 2021, the City recognized pension expense of $8,813,114 for the Safety Plan. On June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to m easurem ent date $5,482,002 Differences between actual and ex pected ex perience 4,151,119 Changes in assumptions ($178,315)
Net differences between projected and actual earnings
on plan investm ents 1,163,471
Differences between actual contributions and
proportional contributions (2,210,826)
Adjustm ent due to differences in proportion 1,461,955
Total $12,258,547 ($2,389,141)
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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 8 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (Continued)

A total of $5,482,002 reported as deferred outflows of resources related to contribu tions subsequent to the measurement date will be recognized as a component of pe nsion expense in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and defe rred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amortization
2022 $895,051
2023 1,676,055
2024 1,233,334
2025 582,964

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability, as well as what the City’s proportionate share of the net pension lia bility would be if it were calculated using a discount rate that is one- percentage point lower or one-percentage point higher than the current rate:

Safety
1% Decrease 6.15%
Net Pension Liability $78,413,678
Current Discount Rate 7.15%
Net Pension Liability $53,531,797
1% Increase 8.15%
Net Pension Liability $33,113,859

Pension Plan Fiduciary Net Position – Detailed information about the pens ion plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 9 – DEFINED CONTRIBUTION POST-EMPLOYMENT HEALTHCARE PLAN Plan Description
: The City of San Bruno contracts with the Teamsters Local #856 Hea lth and Welfare Trust Fund to provide health benefits to both active and retir ed employees as a defined contribution plan. The City provides no direct financial contribution towards retiree h ealth benefits; however, due to the fact that retirees and active employees are insured in the same pool it indir ectly subsidizes their premiums through payments for current employees. At this time, the City has not established a trust for the purpose of holding assets accumulated for plan benefits.

Eligibility: Employees (and their dependents) are eligible for retiree health benefits if they retire from the City on or after age 55 with at least 10 years of service (with 12 continuous months prior to date of retirement) and are eligible for a CalPERS pension. Membership of the plan consisted of the following at June 30, 2021:

Current retirees 107
Active employees 226
Total 333
City’s Fundi
ng Policy: The Teamsters Local #856 Health and Welf are Trust Fund determine the contribution requirements of the City. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). For fiscal year 2020-21 the City’s actual contribution to the Teamster s Local #856 Health and Welfare Fund was $6,302,612, which includes the calculated benefit cost for the City’s retirees and the cost of implicit subsidies where applicable.

Annual OPEB Cost and Net OPEB Obligation: The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC) . The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.

It was determined during fiscal year 2016 the City’s participation in a multi-employer health trust should disclose annual trust contributions rather than a Other Post-Employment Benefit (OPEB) liability.

NOTE 10 - CONTINGENCIES
The City participates in a number of Federal, State
and County programs that are fully or partially funded by grants received from other governmental units. Expenditu res financed by grants are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grantor program regulations, the City may be required to reimburse the grantor government. As of June 30, 2021, some amounts of grant expenditures have not been audited, but the City believes that disallowed expe nditures, if any, based on subsequent audits will not have a material effect on a ny individual governmental f unds or the overall financial condition of the City.
87 167 of 299

CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
NOT
E 11 - LITIGATION
The City is a defendant in a number
of lawsuits which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the City Attorney, these acti ons, when finally adjudicated, do not ap pear to have a materially adverse effect on the financial condition of the City.

NOTE 12 – SUBSEQUENT EVENT
Reduction of
CalPERS Discount Rate
In July 2021, CalPERS reported a preliminary 21.3% ne t return on investments for the 12-month period that ended June 30, 2021. Under the Funding Risk M itigation Policy, approved by the CalPERS Board of Administration in 2015, the 21.3% net return will tri gger a reduction in the discount rate used to calculate employer and Public Employees' Pens ion Reform Act (PEPRA) member contributions. The Funding Risk Mitigation Policy seeks to reduce CalPERS funding risk ov er time, in which CalPERS investment performance that significantly outperforms the discount rate will trigger adjustments to the discount rate, expected investment return, and strategic asset allocation targets. This is th e first time it has been triggered. The discount rate, or assumed rate of return, will drop to 6.8%, from its current level of 7%.

Based on these preliminary fiscal year returns, the CalPERS has announced the funded status of the overall Public Employees Retirement Fund (PERF) is an estimated 82%. This estimate is based on a 7% discount rate. Under the new 6.8% discount rate, however, CalPERS indicated the f unded status of the overall PERF drops to 80%. This is because existing assets are assumed to grow at a slightly sl ower rate annually into th e future. As intended under the Funding Risk Mitigation Policy, the lower discount ra te increases the likelihood that CalPERS can reach its target over the longer term. The CalPERS Board of Admi nistration will continue to review the discount rate through its Asset Liability Management process during the rest of the calendar year.

CalPERS' final fiscal year 2021 investment performance will be calculated based on audited figures and will be reflected in contribution levels for contracting cities, counties, and special districts in fiscal year 2024. 88 168 of 299

REQUIRED SUPPLEMENTARY INFORMATION
169 of 299
Variance with
Original Final Final
Budget Budget Actual Budget
REVENUES:

Taxes $27,719,452 $29,383,985 $34,081,291 $4,697,306
Licenses and permits 4,267,477 4,942,887 4,914,700 (28,187) Intergovernmental 5,134,141 4,621,728 4,755,748 134,020 Charges for services 2,818,072 1,909,176 2,093,216 184,040 Fines and forfeitures 1,049,200 1,049,200 722,685 (326,515) Use of money and property 777,520 777,520 (347,948) (1,125,468) Other revenues 4,840,318 9,315,355 9,964,869 649,514
Total revenues 46,606,180 51,999,851 56,184,561 4,184,710 EXPENDITURES:

Current:

General government 6,171,897 6,851,656 7,012,591 (160,935) Public safety 28,186,117 28,716,660 28,143,174 573,486
Public works 1,252,093 1,537,934 1,540,457 (2,523)
Streets 2,051,197 2,028,381 1,570,931 457,450
Parks and recreation 6,008,640 4,783,934 4,645,159 138,775 Library 2,070,741 1,942,291 1,930,827 11,464
Community and economic development 2,506,727 3,057,510 2,516,995 540,515 Capital outlay 355,735 848,615 800,041 48,574
Total expenditures 48,603,147 49,766,981 48,160,175 1,606,806

REVENUES OVER (UNDER)
EXPENDITURES (1,996,967) 2,232,870 8,024,386 5,791,516
OTHER FINANCING SOURCES (USES):

Transfers in 3,150,524 3,181,276 3,138,051 (43,225)
Transfers out (2,676,681) (3,066,681) (3,145,999) (79,318) Total other financing sources (uses) 473,843 114,595 (7,948) (122,543) Net change in fund balances (1,523,124) 2,347,465 8,016,438 5,668,973 FUND BALANCES:

Beginning of year 27,364,823 27,364,823 27,364,823
End of year $25,841,699 $29,712,288 $35,381,261 $5,668,973

CITY OF SAN BRUNO
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund
For the year ended June 30, 2021
90 170 of 299

CITY OF SAN BRUNO

REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021
Mis cellaneous Plan, an Agent Multiple-Employer Defined Pens ion Plan As of fiscal year ending June 30, 2021
Las t 10 Years*

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS M e a s u r e m e n t D a t e 2 0 1 42 0 1 52 0 1 62 0 1 72 0 1 82 0 1 92 0 2 0 Total Pension Liab ility
Service Cost $2,202,577 $2,097,851 $2,139,755 $2,531,862 $2,492,070 $2,432,199 $2,514,610 Interest 7,873,939 8,305,341 8,778,896 9,108,648 9,431,890 9,905,673 10,324,053 Changes of benefit term s
Differences between ex pected and actual
experience 505,056 934,779 (667,604) (431,451) 1,352,032 856,075 Changes in assumptions (2,047,078) 7,626,708 (862,136) Benefit payments, including refunds of
employee contributions (4,768,345) (5,034,556) (5,302,771) (5,571,094) (6,041,230) (7,198,215) (7,569,113) Net change in total p ension liab ility 5,308,171 3,826,614 6,550,659 13,028,520 4,589,143 6,491,689 6,125,625 Total p ension liab ility - b eginning 106,268,748 111,576,919 115,403,533 121,954,192 134,982,712 139,571,855 146,063,544 Total p ension liab ility - end ing (a) $111,576,919 $115,403,533 $121,954,192 $134,982,712 $139,571,855 $146,063,544 $152,189,169 Plan fiduciary net position
Contributions - employer $2,379,268 $2,511,337 $2,864,024 $3,286,539 $3,493,382 $4,025,948 $4,630,765 Contributions - employee 1,401,279 968,827 995,641 1,021,113 1,025,190 1,014,107 1,144,051 Net investment income 12,458,355 1,866,002 415,562 9,203,409 7,685,495 6,290,148 5,016,150 Net plan to plan resource m ovem ent (223)
Benefit payments, including refunds of
employee contributions (4,768,345) (5,034,556) (5,302,771) (5,571,094) (6,041,230) (7,198,215) (7,569,113) Administration expense (94,139) (50,953) (121,842) (140,779) (68,577) (141,202) Other changes in Fiduciary net position (4)
(
1,791) (
267,342) 223
Net change in plan fiduciary net position 11,470,557 217,467 (1,080,288) 7,818,125 5,754,493 4,063,634 3,080,651 Plan fiduciary net position - beginning 71,916,986 83,387,543 83,605,010 82,524,722 90,342,847 96,097,340 100,160,974 Pl
an fiduciary net position - ending (b) $83,387,543 $83,605,010 $82,524,722 $90,342,847 $96,097,340 $100,160,974 $103,241,625 Net pension liability - ending (a)-(b) $28,189,376 $31,798,523 $39,429,470 $44,639,865 $43,474,515 $45,902,570 $48,947,544 Plan fiduciary net position as a percentage
of the total pens ion liability 74.74% 72.45% 67.67% 66.93% 68.85% 68.57% 67.84% Covered payroll $11,820,838 $11,798,276 $12,099,264 $13,151,844 $13,518,084 $14,298,470 $14,077,430 Net pension liability as percentage of
covered payroll 238.47% 269.52% 325.88% 339.42% 321.60% 321.03% 347.70% Notes to Schedule:
* Fiscal year 2015 was the first year of implementation, additional years will be pres ented as the information becomes available.

Changes in assum p tions.

In 2017, the accounting discount rate rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, and 2020, there were no changes. In 2015, amounts reported reflect an adjus tment of the discount rate from 7.5% (net of adm inistrative ex pense) to 7.65% (without a reduction for pension plan admiistrative ex pense). In 2014, amounts were baed on the 7.5% discount rate.

Benefit changes.

The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30. This applies for voluntary benefit changes as well as any offers of Two Y ears Additional Service Credit (a.k.a. G olden Handshakes). 91 171 of 299

CITY OF SAN BRUNO

REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021
Miscellaneous Plan, an Agent Multiple-Employer Defined Pension Plan As of Fiscal Year ending June 30, 2021
Last 10 Years*

SCHEDULE OF CONTRIBUTIONS
Fiscal year ended, 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Actuarially determined
contribution $2,379,268 $2,751,860 $3,140,457 $3,493,688 $4,025,948 $4,629,604 $4,982,588 Contributions in relation to the
actuarially determined
contributions (2,379,268) (2,751,860) (3,140,457) (3,493,688) (4,025,948) (4,629,604) (4,982,588) Contribution deficiency (excess)
Covered payroll $11,798,276 $12,099,264 $13,151,844 $13,518,083 $14,298,470 $14,077,430 $14,311,191 Contributions as a percentage of
covered payroll 20.17% 22.74% 23.88% 25.84% 28.16% 32.89% 34.82% Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age
Amortization method Level percentage of payroll, closed Remaining amortization period 15 Years as of valuation date Asset valuation method 5-year smoothed market
Inflation 2.75% for 2015 to 2019, 2.625% for 2020, and 2.50% for 2021 Salary increases Varies by entry age and service
Investment rate of return 7.50%, for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and 7.00% for 2021, net of pension plan inve stment expense, including inflation.

Retirement age The probabilities of Retirement are based on the CalPERS Experience Study.

Mortality The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019, 2020, and 2021, pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. * Fiscal year 2015 was the first year of implementation, additional years will be presented as the information becomes available. 92 172 of 299

CITY OF SAN BRUNO

REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021
Cost-Sharing Defined Benefit Pension Plan
As of fiscal year end ing June 30, 2021
L ast 10 Y ears*

SCHEDULE OF CHANGES IN THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 2014 2015 2016 2017 2018 2019 2020
Plan's Proportion of the Net Pension
Liability/Ass et 0.40726% 0.72742% 0.74853% 0.74621% 0.77063% 0.78401% 0.80350% Plan's Proportionate Share of the Net Pension
Liability/(As set) $25,341,888 $29,972,747 $38,768,137 $44,587,859 $45,216,872 $48,942,165 $53,531,797 Plan's Covered Payroll 8,296,958 8,733,422 9,215,379 9,360,496 8,768,759 9,259,344 9,977,457 Plan's Proportionate Share of the Net Pension
Liability/(As set) as a Percentage of it's
Covered Payroll 305.44% 343.20% 420.69% 476.34% 515.66% 528.57% 536.53% Plan's Proportionate Share of the Net Pension
Liability/(As set) as a Percentage of the Plan's
Total Pens ion Liability 81.42% 21.72% 26.71% 26.71% 26.92% 27.76% 29.22% * Fiscal year 2015 was the first year of im plem entation. 93 173 of 299

CITY OF SAN BRUNO

REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021
Cost-Sharing Defined Benefit Pension Plan
As of fiscal year ending June 30, 2021
Last 10 Years*

SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Actuarially determined contribution $2,600,052 $1,681,684 $3,203,722 $3,682,068 $4,282,040 $4,978,130 $5,482,002 Contributions in relation to the
actuarially determined contributions (2,600,052) (1,681,684) (3,203,722) (3,682,068) (4,282,040) (4,978,130) (5,482,002) Contribution deficiency (excess)
Covered payroll $8,733,422 $9,215,379 $9,360,496 $8,768,759 $9,259,344 $9,977,457 $9,800,218 Contributions as a percentage of
covered payroll 29.77% 18.25% 34.23% 41.99% 46.25% 49.89% 55.94% Notes to Schedule
* Fiscal year 2015 was the first year of implementation, additionals years will be presented as the information becomes available. 94 174 of 299

SUPPLEMENTARY INFORMATION
175 of 299
General Fund General
Operating and Fund
Reserves Measure G Totals
ASSETS
Cash and investments $21,369,395 $518,801 $21,888,196
Cash and investments with fiscal agent 50,496 50,496
Receivables:

Taxes 5,461,496 700,061 6,161,557
Interest 137,168 137,168
Loans 775,862 775,862
Other 1,407,317 1,407,317
Prepaid items
Interfund balances 27,135 27,135
Advances to other funds 14,415,651 14,415,651
Total assets $43,644,520 $1,218,862 $44,863,382

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $5,117,831 $5,117,831 Due to other funds
Other liability 3,504,872 3,504,872
Unearned revenue 859,418 859,418
Total liabilities 9,482,121 9,482,121
Fund balances:

Nonspendable
Restricted
Committed
Assigned 30,408,528 30,408,528
Unassigned 3,753,871 $1,218,862 4,972,733
Total fund balances 34,162,399 1,218,862 35,381,261
Total liabilities, deferred inflows of
resources and fund balances $43,644,520 $1,218,862 $44,863,382

CITY OF SAN BRUNO
Combining Balance Sheet
General Fund
June 30, 2021
96 176 of 299

CITY OF SAN BRUNO
Combining Schedule of Statement of Revenues, Expenditures, and Changes in Fund Balances General Fund
For the year ended June 30, 2021
General Fund Intra-Fund General
Operating and Transactions Fund
Reserves Measure G Elimination Totals
REVENUES:

Taxes $30,800,734 $3,280,557 $34,081,291
Licenses and permits 4,914,700 4,914,700
Intergovernmental 4,755,748 4,755,748
Charges for services 2,093,216 2,093,216
Fines and forfeitures 722,685 722,685
Use of money and property (347,948) (347,948)
Other revenues 9,964,869 9,964,869
Total revenues 52,904,004 3,280,557 56,184,561
EXPENDITURES:

Current:

General government 7,012,591 7,012,591
Public safety 28,143,174 28,143,174
Public works 1,540,457 1,540,457
Streets 1,570,931 1,570,931
Parks and recreation 4,645,159 4,645,159
Library 1,930,827 1,930,827
Community and economic development 2,516,995 2,516,995
Capital outlay 800,041 800,041
Total expenditures 48,160,175 48,160,175

REVENUES OVER (UNDER)
EXPENDITURES 4,743,829 3,280,557 8,024,386
OTHER FINANCING SOURCES (USES):

Transfers in 5,288,051 ($2,150,000) 3,138,051
Transfers out (2,740,999) (2,555,000) 2,150,000 (3,145,999) Total other financing sources (uses) 2,547,052 (2,555,000) (7,948) Net change in fund balances 7,290,881 725,557 8,016,438 FUND BALANCES:

Beginning of year 26,871,518 493,305 27,364,823
End of year $34,162,399 $1,218,862 $35,381,261
97 177 of 299
Original Final
Budget Budget Actual Variance
REVENUES:

Taxes $24,808,435 $26,472, 968 $30,800,734 $4,327,766
Licenses and permits 4,267,477 4,942,887 4,914,700 (28,187) Intergovernmental 5,134,141 4,621,728 4,755,748 134,020 Charges for services 2,818,072 1,909,176 2,093,216 184,040 Fines and forfeitures 1,049,200 1,049,200 722,685 (326,515) Use of money and property 777,520 777,520 (347,948) (1,125,468) Other revenues 4,840,318 9,315,355 9,964,869 649,514
Total revenues 43,695,163 49,088,834 52,904,004 3,815,170 EXPENDITURES:

Current:

REVENUES OVER (UNDER)
EXPENDITURES (4,907,984) (678,147) 4,743,829 5,421,976
OTHER FINANCING SOURCES (USES):

Transfers in 5,300,524 5,331,276 5,288,051 (43,225)
Transfers out (2,271,681) (2,661,681) (2,740,999) (79,318) Total other financing sources (uses) 3,028,843 2,669,595 2,547,052 (122,543) Net change in fund balances (1,879,141) 1,991,448 7,290,881 5,299,433 FUND BALANCES:

Beginning of year 26,871,518 26,871,518 26,871,518
End of year $24,992,377 $28,862,966 $34,162,399 $5,299,433 General Fund Operating and Reserves

CITY OF SAN BRUNO
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund
For the year ended June 30, 2021
98 178 of 299
Intrafund
Eliminations
Original Final Original Final
Budget Budget Actual Variance Act ual Budget Budget Actual Variance $2,911,017 $2,911,017 $3,280,557 $369,540 $27,719,452 $29,383,985 $34,081,291 $4,697,306 4,267,477 4,942,887 4,914,700 (28,187)
5,134,141 4,621,728 4,755,748 134,020
2,818,072 1,909,176 2,093,216 184,040
1,049,200 1,049,200 722,685 (326,515)
777,520 777,520 (347,948) (1,125,468)
4,840,318 9,315,355 9,964,869 649,514
2,911,017 2,911,017 3,280,557 369,540 46,606,180 51,999,851 56,184,561 4,184,710 6,171,897 6,851,656 7,012,591 (160,935)
28,186,117 28,716,660 28,143,174 573,486
1,252,093 1,537,934 1,540,457 (2,523)
2,051,197 2,028,381 1,570,931 457,450
6,008,640 4,783,934 4,645,159 138,775
2,070,741 1,942,291 1,930,827 11,464
2,506,727 3,057,510 2,516,995 540,515
355,735 848,615 800,041 48,574
48,603,147 49,766,981 48,160,175 1,606,806
2,911,017 2,911,017 3,280,557 369,540 (1,996,967) 2,232,870 8,024,386 5,791,516 ($2,150,000) 3,150,524 3,181,276 3,138,051 (43,225)
(2,555,000) (2,555,000) (2,555,000) 2,150,000 (2,676,681) (3,066,681) (3,145,999) (79,318) (2,555,000) (2,555,000) (2,555, 000) 473,843 114,595 (7,948) (122,543) 356,017 356,017 725,557 369,540 (1,523,124) 2,347,465 8,016,438 5,668,973 493,305 493,305 26,871,518 27,364,823 27,364,823
$356,017 $849,322 $1,218,862 $369,540 $25,348,394 $29,712,288 $35,381,261 $5,668,973 Measure G General Fund Totals
99 179 of 299
Variance with
Original Final Final
Budget Budget Actual Budget
REVENUES:

Intergovernmental $248,929 $320,929 $689,796 $368,867
Other revenues 400,000 400,000 (400,000)
Total revenues 648,929 720,929 689,796 (31,133) EXPENDITURES:

Current:

Capital outlay 7,581,384 7,812,439 1,533,565 6,278,874 Total expenditures 7,581,384 7,812,439 1,533,565 6,278,874

REVENUES OVER (UNDER)
EXPENDITURES (6,932,455) (7,091,510) (843,769) (6,247,741) OTHER FINANCING SOURCES (USES):

Transfers in 2,801,000 3,331,576 5,011,006 1,679,430 Transfers out (199,171) (793,459) (865,287) (71,828) Total other financing sources (uses) 2,601,829 2,538,117 4,145,719 1,607,602 Net change in fund balances (4,330,626) (4,553,393) 3,301,950 (4,640,139) FUND BALANCES:

Beginning of year 1,695,128 1,695,128 1,695,128
End of year ($2,635,498) ($2,858,265) $4,997,078 ($4,640,139)

CITY OF SAN BRUNO

STREET IMPROVEMENT CAPITAL PROJECT FUND
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the year ended June 30, 2021
100
180 of 299
NO

N-MAJOR GOVERNMENTAL FUNDS
SPECIA

L REVENUE FUNDS
In Lieu – Accounts for funds received to substitute for standard fees utilized for particular purposes.

Agency on Aging – Accounts for funds for senior services.

Federal/State Grants – Accounts for activities for the City’s grants.

Gas Tax – Accounts for funds received and expended for st reet maintenance purposes as defined in sections 2103, 2105, 2106, 2107, 2107.5 of the Streets and Highway Code.

Library – Accounts for funds received for Library programs and operations.

Police Asset Seizure – Accounts for state augmentation funds to be used for safety programs.

Police – Accounts for Police revenues to be used on special law enforcement programs.

SB322 Recycling/Litter Clean-up – Accounts for SB322 funds to be used on recycling and litter clean-up programs.

Restricted Revenues – Accounts for donations and fees collected for specific purposes.

Streets – Accounts for funds dedicated to street improvement and mitigation.

City of San Bruno as Successor Housing Agency – Accounts for housing assets and functions previously performed by the former Redevelopment Agency.

Impact Fees – Accounts for funds from new development to pa y for public facilities and infrastructure needed to accommodate growth in the City.

Measure A Transportation Tax – Accounts for funds received to be used for local transportation purposes. The revenues consist primarily of revenues received from Measure A sales tax passed to the City by San Mateo County.

Disaster Recovery – Accounts for funds from Pacific Gas and Electric Company (PG&E) Trust to rebuild the Crestmoor/Glenview neighborhood.

Measure W Transportation Tax – Accounts for funds received to be used for local transportation purposes.

The revenues consist primarily of revenues received from Measure W sales tax passed to the City by San Mateo County.

CAPITAL PROJECT FUNDS
Parks and Facilities Capital Improvement – Accounts for funds expended on the improvement and development of the City’s facilities, infrastructure, ma jor equipment and technological upgrades used to deliver services to the community. Funding comes from the General Fund, grants, and other sources.

DEBT SERVICE FUND
General – Accounts for funds related to the 2011 and 20 17 fire apparatus lease purchase, 2013 Pension Obligation Bond, and 2018 router lease purchase principal and interest payments. 101
181 of 299

CITY OF SAN BRUNO
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
(with comparative totals for June 30, 2020)
Agency on Federal/State
In-Lieu Aging Grants Gas Tax
ASSETS
Cash and investments $10,441,838 $815,847
Cash and investments with fiscal agents
Receivables:

Taxes 180,233
Interest
Loans
Other $112,413 $112,401
Total assets $10,441,838 $112,413 $112,401 $996,080

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $14,776 $7,910 Due to other funds 27,135
Deposits payable $3,492,518
Unearned revenue 11,050
Total liabilities 3,492,518 14,776 46,095
Deferred Inflows of Resources:

Unavailable revenue 83,234
Total deferred inflows of resources 83,234
Fund Balances:

Restricted 6,949,320 97,637 $996,080
Unassigned (16,928)
Total fund balances (deficits) 6,949,320 97,637 (16,928) 996,080 Total liabilities, deferred inflows of
resources and fund balances $10,441,838 $112,413 $112,401 $996,080 Special Revenue Funds
102
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Library Police SB 322
Special Asset Recycling/Litter Restricted
Revenue Seizure Police Clean-up Revenues Streets
$714,992 $183,004 $317,708 $2,180,816 $258,190
2,333
- - 3,000
$714,992 $183,004 $317,708 $2,186,149 $258,190
$77,321 $3,085
77,321 3,085
637,671 $183,004 $317,708 2,183,064 $258,190
637,671 183,004 317,708 2,183,064 258,190
$714,992 $183,004 $317,708 $2,186,149 $258,190
(Continued)
Special Revenue Funds
103
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CITY OF SAN BRUNO
Combining Balance Sheet
Nonmajor Governmental Funds, Continued
June 30, 2021
(with comparative totals for June 30, 2020)

Measure A Disaster
City as Successor Impact Transportation Recovery
Housing Agency Fees Tax Fund
ASSETS
Cash and investments $700,649 $118,576 $1,106,230 $913,261 Cash and investments with fiscal agents
Receivables:

Taxes
Interest
Loans
Other
Total assets $700,649 $118,576 $1,106,230 $913,261

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities
Due to other funds
Deposits payable
Unearned revenue
Total liabilities

DEFERRED INFLOW OF RESOURCES
Unavailable revenue
Total deferred inflows of resources
Fund Balances:

Restricted $700,649 $118,576 $1,106,230 $913,261
Total fund balances (deficits) 700,649 118,576 1,106,230 913,261 Total liabilities, deferred inflows of
resources and fund balances $700,649 $118,576 $1,106,230 $913,261 104
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Capital Projects Funds Debt Service Fund
Measure W
Parks and
Transportation Facilities
Tax Capital Improvemen t General 2021 2020
$417,242 $2,602,043 $20,770,396 $19,813,155
$5 51
95,599 275,832 208,251
2,333
383,562 611,376 1,636,261
$512,841 $2,985,605 $5 $21,659,942 $21,657,668
$174,431 $277,523 $1,250,220
27,135
3,492,518
11,050
174,431 3,808,226 1,250,220
83,234
83,234
$512,841 2,811,174 $5 17,785,410 20,407,448
(16,928)
512,841 2,811,174 5 17,768,482 20,407,448
$512,841 $2,985,605 $5 $21,659,942 $21,657,668
Totals
Non-major funds
105
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Agency on Federal/State
In-Lieu Aging Grants Gas Tax
REVENUES:

Taxes $1,852,026
Licenses and permits
Use of money & property $55,271 $294 $372 5,982
Intergovernmental 270,937 269,936
Charges for services
Fines and forfeitures
Other revenues 60,026
Total revenues 55,271 331,257 270,308 1,858,008
EXPENDITURES:

Current:

General government
Public safety 202,935
Streets 2,211
Parks and recreation 31,140 153,036
Library 8,951
Community and economic development 30,000 87,577
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures 61,140 153,036 299,463 2,211

REVENUES OVER (UNDER)
EXPENDITURES (5,869) 178,221 (29,155) 1,855,797
OTHER FINANCING SOURCES (USES):

Transfers in 51,192
Transfers out (175,000) (115,333) (1,733,500)
Total other financing
sources and uses (175,000) (115,333) (1,682,308)
Net change in fund balances (180,869) 62,888 (29,155) 173,489 FUND BALANCES:

Beginning of year 7,130,189 34,749 12,227 822,591
End of
year $6,949,320 $97,637 ($16,928) $996,080
Special Revenue Funds

CITY OF SAN BRUNO
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2021
(with comparative totals for the year ended June 30, 2020) 106
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Library Police SB 322
Special Asset Recycling/Litter Restricted
Revenue Seizure Police Clean-up Revenues Streets
$214,200
$5,051 $1,349 $2,480 16,027 $1,611
156,727 11,474
101,781
86,607 86,055
106,832 158,076 100,561 316,282 1,611
42,460
231,209 104,978
71,025
9,173
17,755
15,216
231,209 71,025 189,582
(124,377) 158,076 29,536 126,700 1,611
10,889
($12,697) (272,000) (200,000) (130,000) (743,000) (150,000) (12,697) (272,000) (200,000) (130,000) (732,111) (150,000) (12,697) (396,377) (41,924) (100,464) (605,411) (148,389) 12,697 1,034,048 224,928 418,172 2,788,475 406,579
$637,671 $183,004 $317,708 $2,183,064 $258,190
(Continued)
Special Revenue Funds
107
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CITY OF SAN BRUNO
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds, Continued
For the year ended June 30, 2021
(with comparative totals for the year ended June 30, 2020) Measure A
City as Successor Impact
Transportation Disaster Recovery
Housing Agency Fees Tax Fund
REVENUES:

Taxes $997,205
Licenses and permits $6,632
Use of money & property 738 5,835
Intergovernmental
Charges for services
Fines and forfeitures
Other revenues $3,278
Total revenues 7,370 1,003,040 3,278
EXPENDITURES:

Current:

General government 4
Public safety
Streets
Parks and recreation
Library
Community and economic development
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures 4

REVENUES OVER (UNDER)
EXPENDITURES 7,370 1,003,040 3,274
OTHER FINANCING SOURCES (USES):

Transfers in 793,420
Transfers out (3,176,381)
Total other financing
sources and uses (2,382,961)
Net change in fund balances 7,370 (1,379,921) 3,274
FUND BALANCES:

Beginning of year $700,649 111,206 2,486,151 909,987
End of
year $700,649 $118,576 $1,106,230 $913,261
108
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Capital Projects Funds
Debt Service Fund
Measure W Parks and
Transportation Facilities
Tax Capital Improvement
General 2021 2020
$466,674 $3,315,905 $3,338,155
220,832 219,429
2,896 $6 97,912 258,558
709,074 409,437
101,781 365,917
$1,993,985 2,229,951 7,221,300
469,570 1,993,985 6 6,675,455 11,812,796
42,464 55,882
539,122 204,370
73,236 91,111
193,349 179,279
26,706 15,013
132,793 167,088
2,164,396 2,164,396 3,972,714
1,398,135 1,398,135 1,358,246
315,091 315,091 356,404
2,164,396 1,713,226 4,885,292 6,400,107
469,570 (170,411) (1,713,220) 1,790,163 5,412,689
1,453,000 1,713,224 4,021,725 3,549,517
(400,000) (1,342,943) (8,450,854) (4,843,676)
(400,000) 110,057 1,713,224 (4,429,129) (1,294,159)
69,570 (60,354) 4 (2,638,966) 4,118,530
443,271 2,871,528 1 20,407,448 16,288,918
$512,841 $2,811,174 $5 $17,768,482 $20,407,448
Totals
Non-major funds
109
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Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Taxes
Licenses and permits
Use of money & property $40,000 $55,271 $15,271 $200 $294 $94 Intergovernmental 167,270 270,937 103,667
Charges for services
Fines and forfeitures
Other revenues 36,500 60,026 23,526
Total revenues 40,000 55,271 15,271 203,970 331,257 127,287 EXPENDITURES:

Current:

General government
Public safety
Public works
Streets
Parks and recreation 30,000 31,140 167,137 153,036 14,101 Library
Community and economic development 42,350 30,000 12,350 Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures 72,350 61,140 12,350 167,137 153,036 14,101

REVENUES OVER (UNDER)
EXPENDITURES (32,350) (5,869) 26,481 36,833 178,221 141,388 OTHER FINANCING SOURCES (USES):

Transfers in
Transfers out (175,000) (175,000) (36,500) (115,333) (78,833) Total other financing
sources and uses (175,000) (175,000) (36,500) (115,333) (78,833) Net change in fund balances (207,350) (180,869) 26,481 333 62,888 62,555 FUND BALANCES:

Beginning of year 7,130,189 7,130,189 34,749 34,749
End of year $6,922,839 $6,949,320 $26,481 $35,082 $97,637 $62,555 For the year ended June 30, 2021
Budget and Actual

CITY OF SAN BRUNO
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds

SPECIAL REVENUE FUNDS
In-Lieu Agency on Aging
110
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Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,510,448 $1,852,026 $341,578
$372 $372 4,000 5,982 1,982
$405,261 269,936 (135,325)
405,261 270,308 (134,953) 1,514,448 1,858,008 343,560
155,261 202,935 (47,674)
2,200 2,211 (11)
20,000 8,951 11,049
230,000 87,577 142,423
405,261 299,463 105,798 2,200 2,211 (11)
(29,155) (240,751) 1,512,248 1,855,797 343,571
45,000 51,192 (6,192)
(1,933,500) (1,733,500) (200,000) ($12,624) ($12,697) $73 (1,888,500) (1,682,308) (206,192) (12,624) (12,697) 73
(29,155) (240,751) (376,252) 173,489 137,379 (12,624) (12,697) 73 12,227 12,227 822,591 822,591 12,697 12,697
$12,227 ($16,928) ($240,751) $446,339 $996,080 $137,379 $73 $73 (Continued)
Library Special Revenue

SPECIAL REVENUE FUNDS
Federal/State Grants Gas Tax
111
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Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Taxes
Licenses and permits
Use of money & property $4,000 $5,051 $1,051 $1,600 $1,349 ($251) Intergovernmental 130,000 156,727 26,727
Charges for services
Fines and forfeitures 113,000 101,781 (11,219)
Other revenues
Total revenues 117,000 106,832 (10,168) 131,600 158,076 26,476 EXPENDITURES:

Current:

General government
Public safety 482,882 231,209 251,673
Public works
Streets
Parks and recreation
Library
Community and economic development
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures 482,882 231,209 251,673

REVENUES OVER (UNDER)
EXPENDITURES (365,882) (124,377) (261,841) 131,600 158,076 26,476 OTHER FINANCING SOURCES (USES):

Transfers in
Transfers out (272,000) (272,000) (200,000) (200,000)
Total other financing
sources and uses (272,000) (272,000) (200,000) (200,000) Net change in fund balances (637,882) (396,377) (261,841) (68,400) (41,924) 26,476 FUND BALANCES:

Beginning of year 1,034,048 1,034,048 224,928 224,928
End of year $396,166 $637,671 ($261,841) $156,528 $183,004 $26,476

SPECIAL REVENUE FUNDS

CITY OF SAN BRUNO
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2021
Budget and Actual
Police Asset Seizure Police Special Revenue
112
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Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $70,000 $214,200 $144,200
$2,500 $2,480 ($20) 27,000 16,027 (10,973) $1,611 $1,611 11,300 11,474 174
84,379 86,607 2,228 65,000 86,055 21,055
98,179 100,561 2,382 162,000 316,282 154,282 1,611 1,611 78,600 42,460 36,140
98,954 104,978 (6,024)
85,604 71,025 14,579
14,125 9,173 4,952
8,100 17,755 (9,655)
39,216 15,216 24,000
85,604 71,025 14,579 238,995 189,582 49,413
12,575 29,536 (12,197) (76,995) 126,700 104,869 1,611 1,611 10,889 10,889
(130,000) (130,000) (755,146) (743,000) 12,146 ($150,000) (150,000) (130,000) (130,000) (744,257) (732,111) 12,146 (150,000) (150,000) (117,425) (100,464) (12,197) (821,252) (605,411) 117,015 (150,000) (148,389) 1,611 418,172 418,172 2,788,475 2,788,475 406,579 406,579
$300,747 $317,708 $1,967,223 $2,183,064 $117,015 $256,579 $258,190 $1,611 (Continued)
StreetsSB 322 Recycling/Litter Clean-up Restricted Revenues

SPECIAL REVENUE FUNDS
113
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SPECIAL REVENUE FUNDS
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Taxes
Licenses and permits $75,000 $6,632 ($68,368)
Use of money & property 500 738 238
Intergovernmental
Charges for services
Fines and forfeitures
Other revenues
Total revenues 75,500 7,370 (68,130)
EXPENDITURES:

Current:

General government
Public safety
Public works
Streets
Parks and recreation
Library
Community and economic development
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures

REVENUES OVER (UNDER)
EXPENDITURES 75,500 7,370 (68,130)
OTHER FINANCING SOURCES (USES):

Transfers in
Transfers out
Total other financing
sources and uses
Net change in fund balances 75,500 7,370 (68,130)
FUND BALANCES:

Beginning of year $700,649 $700,649 $111,206 111,206
End of year $700,649 $700,649 $186,706 $118,576 ($68,130) Impact Fees
Nonmajor Governmental Funds
For the year ended June 30, 2021
City as Housing Agency
Budget and Actual

CITY OF SAN BRUNO
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 114
194 of 299
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $816,327 $997,205 $180,878 $241,462 $466,674 $225,212
15,000 5,835 (9,165) 500 2,896 2,396 $3,278 $3,278
831,327 1,003,040 171,713 3,278 3,278 241,962 469,570 227,608 $41,618 4 41,614
41,618 4 41,614
831,327 1,003,040 171,713 (41,618) 3,274 44,892 241,962 469,570 227,608 648,459 793,420 144,961
(1,296,951) (3,176,381) (1,879,430) (400,000) (400,000) (648,492) (2,382,961) (1,734,469) (400,000) (400,000)
182,835 (1,379,921) (1,562,756) (41,618) 3,274 44,892 (158,038) 69,570 227,608 2,486,151 2,486,151 909,987 909,987 443,271 443,271
$2,668,986 $1,106,230 ($1,562,756) $868,369 $913,261 $44,892 $285,233 $512,841 $227,608 (Continued)
Disaster RecoveryMeasure A Transportation Tax Measure W Transportation Tax

SPECIAL REVENUE FUNDS
115
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Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Taxes
Licenses and permits
Use of money & property $6 $6
Intergovernmental
Charges for services
Fines and forfeitures
Other revenues $15,123,438 $1,993,985 ($13,129,453)
Total revenues 15,123,438 1,993,985 (13,129,453) 6 6
EXPENDITURES:

Current:

General government
Public safety
Public works
Streets
Parks and recreation
Library
Capital outlay 24,931,328 2,164,396 22,766,932
Debt service:

Principal $1,398,134 1,398,135 (1)
Interest and fiscal charges 315,097 315,091 6
Total expenditures 24,931,328 2,164,396 22,766,932 1,713,231 1,713,226 5

REVENUES OVER (UNDER)
EXPENDITURES (9,807,890) (170,411) 9,637,479 (1,713,231) (1,713,220) 11 OTHER FINANCING SOURCES (USES):

Transfers in 1,453,000 1,453,000 1,713,231 1,713,224 (7) Transfers out (1,501,501) (1,342,943) 158,558
Total other financing
sources and uses (48,501) 110,057 158,558 1,713,231 1,713,224 (7) Net change in fund balances (9,856,391) (60,354) 9,796,037 4 4 FUND BALANCES:

Beginning of year 2,871,528 2,871,528 1 1
End of year ($6,984,863) $2,811,174 $9,796,037 $1 $5 $4 Community and economic development
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2021

CITY OF SAN BRUNO

DEBT SERVICE FUND
Budget and Actual
General

CAPITAL PROJECTS FUND
Parks and Facilities Capital Improvement
116
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INTERNAL SERVICE FUNDS

Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.

The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of each internal service fund is eliminated by netting them against the operations of the other City de partments, which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

Internal service funds are still presented separately in the Fund financial statements, including the funds below.

Central Garage – To account for the cost of vehicle acquisition and disposal, preventative maintenance and repair, and support services for the City’s fleet.

Self-Insurance – To account for the City’s coverage for Workers’ Compensation and General Liability insurance.

Technology Development – To account for the cost of maintaining the C ity’s IT infrastructure, network and data security, business applications and management, and providing a centralized service desk.

Facilities Management – To account for the cost of custodial services, facility management and preventative maintenance, and repair services for the City’s facilities.

117
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CITY OF SAN BRUNO
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
(with comparative totals for June 30, 2020)
Central Self- Technology Facilities
Garage Insurance Development Maintenance
ASSETS
Current assets:

Cash and investments $95,807 $1,502,709 $448,302 $546,622 Cash and investments held by trustees 91,119
Receivables (net):

Accounts 34,682
Loans receivable
Total current assets 95,807 1,593,828 448,302 581,304 Noncurrent assets:

Capital assets (net) 5,305
Total noncurrent assets 5,305
Total assets $95,807 $1,593,828 $448,302 $586,609

LIABILITIES
Liabilities:

Current liabilities:

Accounts payable $25,601 $134,896 $161,020 $114,068
Compensated absences 3,521 8,283 9,471
Liability for claims 1,072,204
Total current liabilities 29,122 1,207,100 169,303 123,539 Noncurrent liabilities:

Compensated absences 7,419 22,587 31,036
Liability for claims 4,339,796
Total noncurrent liabilities 7,419 4,339,796 22,587 31,036 Total liabilities 36,541 5,546,896 191,890 154,575

NET POSITION
Invested in capital assets, net of related debt 5,305
Unrestricted net position 59,266 (3,953,068) 256,412 426,729 Total net position 59,266 (3,953,068) 256,412 432,034 Total liabilities and net position $95,807 $1,593,828 $448,302 $586,609 118
198 of 299
2021 2020
$2,593,440 $1,885,053
91,119 91,119
34,682
233
2,719,241 1,976,405
5,305 9,284
5,305 9,284
$2,724,546 $1,985,689
$435,585 $368,295
21,275 16,439
1,072,204 1,126,626
1,529,064 1,511,360
61,042 45,928
4,339,796 3,809,374
4,400,838 3,855,302
5,929,902 5,366,662
5,305 9,284
(3,210,661) (3,390,257)
(3,205,356) (3,380,973)
$2,724,546 $1,985,689
Totals
119
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CITY OF SAN BRUNO
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the year ended June 30, 2021
(with comparative totals for the year ended June 30, 2020) Central Self- Technology Facilities
Garage Insurance Development Maintenance
OPERATING REVENUES:

Charges for services $575,178 $2,846,554 $1,058,000 $1,724,000 Other revenue 34,681
Total operating revenues 575,178 2,846,554 1,058,000 1,758,681 OPERATING EXPENSES:

Central garage 732,601
Insurance premiums, claims and administration 2,853,629 Technology 966,026
Facilities 1,596,561
Depreciation 3,979
Total operating expenses 732,601 2,853,629 966,026 1,600,540 OPERATING INCOME (LOSS) (157,423) (7,075) 91,974 158,141 Transfers from other funds 90,000
Total transfers 90,000
CHANGE IN NET POSITION (157,423) (7,075) 91,974 248,141 NET POSITION:

Beginning of year 216,689 (3,945,993) 164,438 183,893
End of year $59,266 ($3,953,068) $256,412 $432,034
120
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2021 2020
$6,203,732 $5,403,554
34,681 94,007
6,238,413 5,497,561
732,601 600,771
2,853,629 3,472,788
966,026 898,329
1,596,561 1,341,795
3,979 3,979
6,152,796 6,317,662
85,617 (820,101)
90,000
90,000
175,617 (820,101)
(3,380,973) (2,560,872)
($3,205,356) ($3,380,973)
Totals
121
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CITY OF SAN BRUNO
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2021
(with comparative totals for the year ended June 30, 2020) Central Self- Technology Facilities
Garage Insurance Development Maintenance
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from other funds for services $578,149 $2,846,554 $1,061,187 $1,772,473 Cash payments to suppliers for goods and services (729,107) (2,978,168) (828,154) (1,580,547) Cash reimbursements for loss claims 476,000
Net cash provided (used) by operating activities (150,958) 344,386 233,033 191,926

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Advance repayments from fiduciary funds
Transfers received from other funds 90,000
Net cash provided by noncapital financing activities 90,000 Net increase in cash and cash equivalents (150,958) 344,386 233,033 281,926 CASH AND CASH EQUIVALENTS:

Beginning of year 246,765 1,249,442 215,269 264,696 End of year $95,807 $1,593,828 $448,302 $546,622
Reconciliation of income (loss) from operations to net
cash provided (used) by operating activities:

Income (loss) from operations ($157,423) ($7,075) $91,974 $158,141 Adjustments to reconcile income (loss) from operations
to net cash provided (used) by operating activities:

Depreciation 3,979
(Increase) decrease in current assets:

Accounts receivable (34,682)
Loans receivable 233
Increase (decrease) in liabilities:

Accounts payable and accrued liabilities 3,494 (124,772) 137,872 50,696 Compensated absences 2,971 3,187 13,792
Increase (decrease) in claims liability - current & noncurrent 476,000 Net cash provided (used) by operating activities ($150,958) $344,386 $233,033 $191,926 Presentation in Statement of Net Position:

Cash and investments $95,807 $1,502,709 $448,302 $546,622 Cash and investments held by trustees 91,119
Total Cash and Cash Equivalents, End of Year $95,807 $1,593,828 $448,302 $546,622 122
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2021 2020
$6,258,363 $5,473,374
(6,115,976) (6,162,824)
476,000 524,000
618,387 (165,450)
90,000
90,000
708,387 (165,450)
1,976,172 2,141,622
$2,684,559 $1,976,172
$85,617 ($820,101)
3,979 3,979
(34,682)
233 (233)
67,290 151,092
19,950 (24,187)
476,000 524,000
$618,387 ($165,450)
$2,593,440 $1,885,053
91,119 91,119
$2,684,559 $1,976,172
Totals
123
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STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclo sures, and requir ed supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These
schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time:

1. Net Po sition by Component

2. Changes in Net Position

3. Fund Balances of Governmental Fund
s

4. Chang
es in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

1. A
ssessed Value and Actual Va lue of Taxable Property

2. Direct and Overlapping Property Tax Rates

3. Prin
cipal Property Taxpayers

4. Sch
edule of Top 40 Business License Taxpayers

5. Property
Tax Levies and Collections
Debt Capacity
These sch
edules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:

1. Ratio of Ou tstanding Debt by Type

2. Co
mputation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin

4. Bonded Debt Pledg
ed Revenue Coverage:
a. Wastew
ater Certificates of Participation
b. 2013
Wastewater Revenue Refunding Bonds
c. 2017
Wastewater Revenue Refunding Bonds
d. 2017 Water Revenu
e Refunding Bonds
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:

1. De
mographic and Economic Statistics

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

1. Full-Time Equivalent City Government Employees by Function/Program

2. Operating Ind
icators by Function/Program

3. Cap
ital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year. Th e City implemented GASB Statemen t 34 in 2002; schedules presenting government-wide information include information beginning in that year. 125
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2012 2013 2014 2015 2016
Governmental activities
Net investments in capital assets 48,151,315$ 49,191,126$ 50,124,094$ 47,667,730$ 50,836,407$ Restricted 12,461,795 10,637,770 10,612,672 16,592,413 12,444,902 Unrestricted 6,089,202 (5,227,689) (3,967,832) (35,591,299) (34,557,594) Total governmental activities net position 66,702,312$ 54,601,207$ 56,768,934$ 28,668,844$ 28,723,715$ Business-type activities
Net investments in capital assets 32,968,582$ 36,842,785$ 46,715,688$ 57,076,442$ 67,316,388$ Restricted - - - - -
Unrestricted 18,311,018 19,519,379 24,822,052 11,218,527 7,002,450 Total business-type activities net position 51,279,600$ 56,362,164$ 71,537,740$ 68,294,969$ 74,318,838$ Primary government
Net investments in capital assets 67,688,185$ 86,033,911$ 96,839,782$ 104,744,172$ 118,152,795$ Restricted 15,666,900 10,637,770 10,612,672 16,592,413 12,444,902 Unrestricted 21,431,254 14,291,690 20,854,220 (24,372,772) (27,555,144) Total primary government net position 104,786,339$ 110,963,371$ 128,306,674$ 96,963,813$ 103,042,553$ 2017 2018 2019 2020 2021
Governmental activities
Net investments in capital assets 54,014,157$ 59,084,356$ 66,352,484$ $69,271,484 68,788,202$ Restricted 15,727,642 18,264,533 18,534,689 22,102,576 22,782,488 Unrestricted (42,133,843) (41,778,351) (47,316,623) (55,052,523) (50,077,211) Total governmental activities net position 27,607,956$ 35,570,538$ 37,570,550$ 36,321,537$ 41,493,479$ Business-type activities
Net investments in capital assets 70,539,432$ 37,167,066 $ 42,964,412 $ 53,787,761 $ 58,800,601 $ Restricted 40,979,572 $ 27,693,026 15,720,390 4,123,199 Unrestricted 14,463,523 12,485,588 30,544,816 41,095,816 57,420,518 Total business-type activities net position 85,002,955$ 90,632,226 $ 101,202,254 $ 110,603,967 $ 120,344,318 $ Primary government
Net investments in capital assets 124,553,589$ 96,251,422$ 109,316,896$ 123,059,245$ 127,588,803$ Restricted 15,727,642 18,264,533 46,227,715 37,822,966 26,905,687 Unrestricted (27,670,320) (29,292,763) (16,771,807) (13,956,707) 7,343,307 Total primary government net position 112,610,911$ 85,223,192$ 138,772,804$ 146,925,504$ 161,837,797$ * Restated for the elimination of the Other Post-Employment Benefits (OPEB).

CITY OF SAN BRUNO
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
127
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CITY OF SAN BRUNO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General government 9,136,147$ 10,461,109$ 12,129,370$ 10,813,390$ $ 6,632,727 $ 7,944,081 $ 8,186,106 $ 8,429,310 $ 9,606,933 8,441,787$ Public safety 19,129,330 20,016,150 19,836,376 21,206,573 24,334,371 25,201,102 27,448,567 29,772,551 31,788,329 32,515,036 Public works 952,496 954,150 850,759 863,706 929,223 1,032,599 1,797,113 2,332,672 1,566,728 3,131,204 Highways and streets 3,967,555 3,647,648 2,891,219 3,009,303 3,450,979 4,001,200 3,512,681 3,505,727 4,224,797 4,081,082 Parks and recreation 4,698,243 4,819,878 4,717,561 5,562,181 5,611,296 5,929,836 6,156,634 6,147,260 5,817,710 4,814,770 Library 1,693,611 1,695,581 1,685,455 1,731,305 1,799,797 1,937,465 2,094,990 2,093,683 2,458,480 2,298,623 Community development 1,951,941 1,556,777 1,888,260 2,265,895 2,526,383 2,791,309 2,887,538 2,955,685 3,057,191 2,652,300 Interest expense 455,313 931,179 267,977 416,914 403,839 387,374 380,311 388,594 373,262 324,944 Total governmental activities expenses 41,984,636 44,082,472 44,266,977 45,869,267 45,688,615 49,224,966 52,463,940 55,625,482 58,893,430 58,259,746 Water 8,444,001 9,237,239 8,770,677 9,378,993 10,098,091 9,717,392 11,416,387 11,290,539 12,137,204 12,697,845 Stormwater 446,020 661,493 739,512 905,074 607,817 606,627 1,011,466 1,677,767 2,287,138 1,375,960 Wastewater 8,755,063 9,220,142 9,427,956 10,265,939 10,921,203 12,033,285 12,380,908 11,781,728 12,926,033 12,879,291 Cable Television 10,709,142 10,100,602 10,508,595 11,002,694 11,240,247 11,655,651 12,492,354 12,183,104 11,053,095 9,927,716 Total business-type activities expenses 28,354,226 29,219,476 29,446,740 31,552,700 32,867,358 34,012,955 37,301,115 36,933,138 38,403,470 36,880,812 Total primary government expenses 70,338,862$ 73,301,948$ 73,713,717$ 77,421,967$ 78,555,973$ 83,237,921$ 89,765,055$ 92,558,620$ 97,296,900$ 95,140,558$ General government 3,171,610$ 2,704,082$ 2,923,789$ 2,837,224$ 3,468,619$ 3,534,173$ 3,693,098$ 3,713,293$ 3,859,492 4,735,876$ Public safety 1,719,551 1,670,163 1,632,659 1,637,659 1,906,214 2,019,187 2,275,753 2,551,241 2,120,724 2,134,812 Public works 205,501 135,283 104,982 86,752 165,037 475,379 308,461 301,330 421,557 708,024 Highways and streets 9,474 14,649 19,985 17,977 17,204 16,500 17,092 17,228 17,474 17,900 Parks and recreation 1
,182,386 1,194,216 1,359,079 1,471,537 1,490,268 1,533,722 1,482,588 1,683,629 742,258 283,124 Library 132,216 94,866 92,227 96,969 86,593 92,709 93,014 26,855 17,101 772 Com
munity development 1,793,825 969,707 988,285 1,759,620 1,547,278 1,832,185 1,847,569 2,635,631 2,860,417 2,704,804 10,364,539 9,190,570 9,527,246 11,433,248 3,053,574 7,352,434 13,445,214 6,440,037 2,231,014 3,022,800
1,897,433 1,143,765 88,658 391,523 227,381 133,241 1,408,402 1,936,614 7,735,245 7,808,476
Total governmental activities program revenues 20,476,535 20,476,535 16,736,910 19,732,509 11,962,168 16,989,530 24,571,191 19,305,858 20,005,282 21,416,588 Water 10,601,609 11,725,402 15,041,156 12,304,017 12,688,039 14,251,650 15,312,217 17,037,634 16,936,737 17,777,900 Stormwater 612,325 611,886 1,474,221 839,852 652,195 1,035,641 645,507 648,323 650,555 655,608 Wastewater 11,294,768 12,233,209 15,470,139 15,016,113 15,879,501 15,803,116 16,748,382 17,732,648 18,230,960 18,470,837 Cable Television 10,192,578 9,651,598 9,329,485 9,288,345 9,253,900 9,880,781 9,983,780 9,739,499 9,303,573 9,017,048 Total business-type activities program revenues 32,701,280 34,222,095 41,315,001 37,448,327 38,473,635 40,971,188 42,689,886 45,158,104 45,121,825 45,921,393 Total primary government program revenues 53,177,815$ 54,698,630$ 58,051,911$ 57,180,836$ 50,435,803$ 57,960,718$ 67,261,077$ 64,463,962$ 65,127,107$ 67,337,981$ Governmental activities (21,508,101)$ (23,605,937)$ (27,530,067)$ (26,136,758)$ (33,726,447)$ (32,235,436)$ (27,892,749)$ (36,319,624)$ (38,888,148)$ (36,843,158)$ Business-type activities 4,347,054 5,002,619 11,868,261 5,895,627 5,606,277 6,958,233 5,388,771 8,224,966 6,718,355 9,040,581 Total net revenues (expenses) (17,161,047)$ (18,603,318)$ (15,661,806)$ (20,241,131)$ (28,120,170)$ (25,277,203)$ (22,503,978)$ (28,094,658)$ (32,169,793)$ (27,802,577)$ Operating grants and contributions
Capital grants and contributions
Charges for services:

Net Revenues (Expenses)
Business-type activities:

Expenses
Program Revenues
Charges for services:

Governmental activities:

Business-type activities:

Governmental activities:
128
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CITY OF SAN BRUNO
Changes in Net Position
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Property taxes, levied for general purposes 5,641,633 $ 6,752,943 $ 8,197,205 $ 8,844,431 $ 9,500,264$ 9,968,404$ 10,515,309$ 11,846,367$ 12,212,891$ 12,618,447$ Property taxes, tax increment for redevelopment purposes 3,607,372 - -
-
-
-
-
- - -
Transient occupancy tax 2
,183,947 2,412,368 2,790,395 3,162,479 3,316,369 3,286,913 3,424,660 3,628,979 2,617,524 1,247,467 Franchise tax 1,941,385 1,973,837 1,957,795 2,125,938 1,960,997 1,823,810 1,835,943 1,839,359 1,861,256 1,798,673 Sales tax, including subvention 6,861,036 7,345,212 8,547,806 8,556,002 8,377,896 8,777,377 8,332,044 8,764,449 9,281,920 17,780,042 Cardroom taxes 1,572,708 1,616,868 1,652,904 1,694,580 1,735,696 1,781,208 1,843,532 1,904,512 1,974,980 2,035,009 Other taxes 2,028,635 2,251,707 3,267,636 2,867,616 2,514,851 2,492,886 2,607,258 2,213,593 1,972,392 2,045,462 Intergovernmental:

State motor vehicle in-lieu tax, including subvention 3,255,434 3,158,217 3,503,097 3,764,990 4,016,571 4,329,287 4,576,283 4,909,295 5,013,326 3,180,581 State highway user tax - - 1,370,767 1,270,588 976,525 887,258 1,243,782 1,811,108 1,844,231 1,852,026 1,788,884 1,263,400 1,678,676 1,596,447 1,640,673 1,248,861 1,159,121 2,121,974 2,130,318 (341,249) 1,328,242 (11,968,561) (204,035) 274,320 - - - - - - (29,493) 58,075 (3,064,452) (1,768,413) (258,524) (3,476,327) 317,399 (720,000) (1,269,703) (201,358) Total governmental activities 30,179,783 14,864,066 29,697,794 32,388,978 33,781,318 31,119,677 35,855,331 38,319,636 37,639,135 42,015,100 147,344 138,020 242,863 174,855 159,068 249,557 557,899 1,625,062 1,413,655 498,412 29,493 (58,075) 3,064,452 1,768,413 258,524 3,476,327 (317,399) 720,000 1,269,703 201,358 Total business-type activities 176,837 79,945 3,307,315 1,943,268 417,592 3,725,884 240,500 2,345,062 2,683,358 699,770 Total primary government 30,356,620$ 14,944,011$ 33,005,109$ 34,332,246$ 34,198,910$ 34,845,561$ 36,095,831$ 40,664,698$ 40,322,493$ 42,714,870$ Change in Net Position
Governm
ental activities 8,671,682$ (8,741,871)$ 2,167,727$ 6,252,220$ 54,871$ (1,115,759)$ 7,962,582$ 2,000,012$ (1,249,013)$ 5,171,942$ Business-type activities 4,523,891 5,082,564 15,175,576 7,838,895 6,023,869 10,684,117 5,629,271 10,570,028 9,401,713 9,740,351 Total primary government 13,195,573$ (3,659,307)$ 17,343,303$ 14,091,115$ 6,078,740$ 9,568,358$ 13,591,853$ 12,570,040$ 8,152,700$ 14,912,293$ Use of money and property
Transfers
Governmental activities:

Taxes:

Use of money and property
Miscellaneous and extraordinary items
Transfers
Business-type activities:

General Revenues and Other Changes in Net Position
129
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2012 2013 2014 2015 2016
General Fund
Nonspendable 624,274$ 548,075$ 586,650$ 690,344$ 3,529,925$ Restricted - - - - - Committed - - - - 19,639,289 Assigned 110,049 238,060 254,698 188,263 2,130,681
Unassigned 12,998,096 8,848,896 10,096,649 11,023,626 3,552,485 Total general fund 13,732,419$ 9,635,031$ 10,937,997$ 11,902,233$ 28,852,380$ All Other Governmental Funds
Nonspendable -$ -$ -$ -$ 90,000$ Restricted 12,532,914 11,120,226 10,612,672 14,762,188 12,444,902 Committed - 8,093,269 10,689,500 10,240,271 3,059,683 Unassigned (71,119) (27,028) (42,705) (80,929) -
Total all other governmental funds 12,461,795$ 19,186,467$ 21,259,467$ 24,921,530$ 15,594,585$ 2017 2018 2019 2020 2021
General fund:

Nonspendable 2,749,851$ 1,657,895$ -$ -$ 14,415,651$ Restricted - - - - - Committed 15,726,434 20,306,330 21,462,554 21,109,020 - Assigned 265,888 143,505 1,101,021 611,383 30,408,528
Unassigned 5,833,164 6,050,669 6,590,744 5,644,420 (9,442,918) Total general fund 24,575,337$ 28,158,399$ 29,154,319$ 27,364,823$ 35,381,261$ All other governmental funds:

Non-spendable 90,000$ -$ -$ -$ -$ Restricted 15,727,642 18,264,533 18,501,668 22,102,576 22,782,488 Committed 3,082,506 3,216,534 - - - Unassigned - (719) - - (16,928) Total all other governmental funds 18,900,148$ 21,480,348$ 18,501,668$ 22,102,576$ 22,765,560$ Fiscal year June 30,

CITY OF SAN BRUNO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year June 30,
130
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CITY OF SAN BRUNO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes 24,265,039$ 22,433,688$ 24,954,783$ 26,085,900$ 26,272,319$ 26,952,603$ 27,836,907$ 30,183,994$ 29,841,240$ 37,397,196$ 3,674,707 2,834,980 4,255,588 3,691,818 3,451,841 3,981,683 3,893,645 4,807,519 3,850,848 5,135,532 Intergovernmental 4,811,636 4,416,017 4,009,117 4,574,638 4,787,432 5,061,978 5,441,457 6,193,125 6,809,578 6,154,618 Charges for services 4,648,073 3,120,324 2,826,577 3,134,354 3,398,555 3,405,255 3,301,524 3,689,192 2,918,239 2,093,216 Fines and Forfeitures 759,985 676,421 654,000 605,704 698,463 1,132,649 7,009,636 1,345,048 1,115,456 824,466 Use of money and property 1,788,884 1,263,400 1,678,676 1,618,634 1,674,729 1,272,582 1,189,135 2,277,193 2,349,974 (250,036) Other revenues 9,409,245 9,147,023 11,324,450 10,489,406 8,467,574 10,445,009 11,436,819 9,396,817 12,481,391 12,194,820 Total revenues: 49,357,569 43,891,853 49,703,191 50,200,454 48,750,913 52,251,759 60,109,123 57,892,888 59,366,726 63,549,812 Expenditures
7,659,751 8,683,516 8,955,056 8,091,630 5,966,987 6,256,661 6,220,529 6,151,598 6,526,050 7,055,055 19,200,997 19,687,555 19,851,466 21,894,204 22,978,100 23,159,049 24,877,089 26,538,743 27,536,184 28,682,296 954,550 876,159 856,559 1,028,427 895,218 852,334 984,844 1,255,226 1,447,402 1,540,457 3,420,294 2,804,070 3,689,780 1,736,206 1,537,442 1,700,057 1,494,003 1,605,936 1,928,545 1,644,167 4,245,171 4,310,157 4,453,981 5,493,030 5,301,162 4,967,433 5,717,215 5,795,227 5,844,760 4,838,508 1,635,242 1,628,841 1,631,084 1,724,112 1,758,937 1,841,983 2,038,896 2,067,693 2,105,201 1,957,533 1,903,573 1,504,058 1,872,127 2,268,181 2,509,152 2,690,910 2,856,118 2,934,136 3,043,416 2,649,788 Capital outlay 2,154,326 1,161,609 360,076 225,737 5,137,379 7,844,120 8,675,937 12,649,502 6,172,424 4,498,002 Debt service:

Principal 365,592 386,409 807,336 818,289 829,272 1,939,282 1,035,038 1,411,245 1,358,246 1,398,135 Interest 219,706 542,606 410,689 399,660 386,635 368,929 363,591 343,660 356,404 315,091 Total expenditures 41,759,202 41,584,980 42,888,154 43,679,476 47,300,284 51,620,758 54,263,260 60,752,966 56,318,632 54,579,032 Reconciliation of Government Revenues
Less expenditures to fund equity
Revenues over (under) expenditures 7,598,367 2,306,873 6,815,037 6,520,978 1,450,629 631,001 5,845,863 (2,860,078) 3,048,094 8,970,780 Extraordinary item (6,591,758) - - - - - - - - - Other financing sources (Transfer in) 2,572,024 9,588,612 7,977,407 7,893,696 24,558,269 6,354,831 8,730,402 8,404,503 10,231,738 12,170,782 Other financing sources (Transfer out) (2,870,183) (9,268,201) (11,416,478) (9,788,375) (18,385,696) (9,831,158) (8,413,003) (9,124,503) (11,501,441) (12,462,140) Other financing sources (Capital lease) - - - - - 1,873,846 - 1,630,339 - - Other financing sources (uses):

Proceeds of debt issued (refunds) - - - - - - - - - - Total other financing sources (uses) - - - - - - - - - - Net change in fund balances (3) 708,450$ 2,627,284$ 3,375,966$ 4,626,299$ 7,623,202$ (971,480)$ 6,163,262$ (1,949,739)$ 1,778,391$ 8,679,422$ Debt service as a percentage of noncapital expenditures 1.5% 2.3% 2.9% 2.8% 2.9% 5.3% 3.1% 3.6% 3.4% 3.4% Licenses and permits
Library
Community Development
General Government
Public safety
Public works
Highways and streets
Parks and recreation
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Assessed Value and Estimated Actual Value of Taxable Property For the last ten fiscal years
Total Total Estimated Total
Fiscal Residential Commercial Industrial Other Secured Unsecured Total Full Market Direct Year End Property (a) Property (a) Property (a) Property (a) Property Property Assessed (b) Value (b) Tax Rate (c)
2012 4,070,537,434$ 891,421,347$ 51,219,994$ 58,079,327$ 5,071,258,102$ 149,424,723$ 5,220,682,825$ 5,220,682,825$ 1.0000 2013 4,174,398,109 866,171,661 54,657,760 37,746,851 5,132,974,381 147,540,815 5,280,515,196 5,280,515,196 1.0000 2014 4,364,835,817 945,331,190 55,708,482 61,925,552 5,427,801,041 188,968,984 5,616,770,025 5,616,770,025 1.0000 2015 4,706,427,833 1,030,026,318 57,511,431 63,017,548 5,856,983,130 191,476,425 6,048,459,555 6,048,459,555 1.0000 2016 5,014,371,175 1,104,091,897 58,749,109 63,704,550 6,240,916,731 186,926,223 6,427,842,954 6,427,842,954 1.0000 2017 5,359,750,309 1,226,598,661 75,276,105 68,634,181 6,730,259,256 209,798,255 6,940,057,511 6,940,057,511 1.0000 2018 5,646,827,286 1,357,155,853 77,211,922 72,559,603 7,153,754,664 212,376,474 7,366,131,138 7,366,131,138 1.0000 2019 6,036,268,674 1,503,692,754 78,754,420 77,125,479 7,695,841,327 193,402,416 7,889,243,743 7,889,243,743 1.0000 2020 6,402,789,888 1,635,452,776 81,593,747 93,290,564 8,213,126,975 191,580,394 8,404,707,369 8,404,707,369 1.0000 2021 6,805,415,098 1,810,368,170 83,857,367 134,679,313 8,834,319,948 144,575,709 8,978,895,657 8,978,895,657 1.0000 Source: California Municipal Statistics and County Assessor Data (a) Other property assessed value included residential, commercial and industrial property before 2008 (b) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. (c) California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area. 132
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Direct and Overlapping Property Tax Rates
For the last ten fiscal years
(rate per $100 of assessed value)
Total
Total School Special Tax
Fiscal Year Basic Rate Direct Districts Districts Rate
2012 1.0000 1.0000 0.0909 0.0000 1.0909
2013 1.0000 1.0000 0.0905 0.0000 1.0905
2014 1.0000 1.0000 0.0864 0.0000 1.0864
2015 1.0000 1.0000 0.0983 0.0000 1.0983
2016 1.0000 1.0000 0.0929 0.0000 1.0929
2017 1.0000 1.0000 0.0910 0.0000 1.0910
2018 1.0000 1.0000 0.0900 0.0000 1.0900
2019 1.0000 1.0000 0.0801 0.0000 1.0801
2020 1.0000 1.0000 0.1148 0.0000 1.1148
2021 1.0000 1.0000 0.1112 0.0000 1.1112
Source: California Municipal Statistics
Direct Rates Overlapping Rates
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Principal Property Taxpayers
Current Year and Nine Years Ago
% of % of
Property Owner Primary Land Use Assessed Valuation Rank Total(1) Property Owner Primary Land Use Assessed Valuation Rank Total(2) Google Inc. Office Building 735,979,711$ 1 8.33% ASN Tanforan Crossing I LLC Apartments 165,384,369$ 1 3.26% Crystal Springs Associates Apartments 191,388,713 2 2.17% The Gap Inc. Office Building 125,359,142 2 2.47% Shops at Tanforan Associates LLC Shopping Center 167,301,360 3 1.89% Tanforan Park Shopping Center Shopping Center 119,821,426 3 2.36% ASN Tanforan Crossing I LLC Apartments 158,682,747 4 1.80% Bayhill Four Associates Office Building 116,497,773 4 2.30% Walmart Stores Inc Office Building 135,628,418 5 1.54% SNK SB Crossing LLC Apartments 60,850,010 5 1.20% Benringer Harvard Acappella LP Apartments 119,125,800 6 1.35% Behringer Harvard Acappella LP Apartments 55,000,000 6 1.08% San Bruno III Financing LP Apartments 97,199,259 7 1.10% CREA-San Bruno LLC Office Building 43,500,000 7 0.86% Seritage SRC Financial LLC Shopping Center 95,690,253 8 1.08% Landmark Towne Center LLC Shopping Center 40,979,776 8 0.81% Welch Family Partnership Commercial 68,048,422 9 0.77% Crystal Springs Associates Apartments 31,824,121 9 0.63% Aimco San Bruno Apartments Partners LP Apartments 61,531,019 10 0.70% Aimco San Bruno Apartments Partn Apartments 30,829,263 10 0.61% Subtotal 1,830,575,702 $ 20.72% 790,045,880 $ 15.58% Total Local Secured Assessed Valuation:
(1) Fiscal Year 2020-21 8,834,319,948
(2) Fiscal Year 2011-12 5,071,258,102
Source(s): Financial Statements and California Municipal Statistics, Inc. 2020-21 2011-2012
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Schedule of Top 40 Business License Taxpayers
(Listed in Alphabetical Order)
For the year ended June 30, 2021
Name
All Shores 135 El Camino Real
Apex Systems, Inc. 1111 Bayhill Dr Ste 240
Automotive Workwear Inc 881 Sneath Ln Ste 113
Best Buy Store#1896 1250 El Camino Real #111
Century Theaters Inc.#494 1188 El Camino Real
Clapp, Moroney, Bellagamba, & Vucinich 1111 Bayhill Dr Ste 300 Courtyard By Marriott San Francisco Airp 1050 Bayhill Dr Crestmoor Auto Center 2901 San Bruno Ave
CVS/Pharmacy#9807 10 Bayhill Shopping CTR
Dynamic Signal Inc. 1111 Bayhill Dr Ste 125
El Camino Velero-Gas 800 El Camino Real
Enterprise Rent A Car Co. of San Francisco 734 San Bruno Ave E J.C. Penney Corp. Inc 1122 El Camino Real
Lucky #748 1322 El Camino Real
Lunardi's Market 2801 San Bruno Ave W
Marken Brokerae Services LLC 1051 Sneath Ln
Marshall's #492 1268 El Camino Real
Melody Toyota 750 El Camino Real
Melody Toyota 222 San Bruno Ave E
Mollie Stones's Market 851 Cherry Ave Ste 22
Providence San Bruno 890 El Camino Real
Recology San Bruno 101 Tanforan Ave
RMC Motorcars 444 El Camino Real
Rollingwood Chevron 2001 Rollingwood Dr
S.Mckenna Roofing Inc. 320 Palomar Ct
Sam's Club.Com/Walmart Stores Inc. 950 Elm Ave
San Bruno Kwik Serv 2101 San Bruno Ave W
San Bruno Shell-Gas Station 798 El Camino Real
San Bruno Town Center San Bruno Town Center
Shops At Tanforan LLC 1150 El Camino Real Ste 17
Specialty Tobacco Outlet 1230 El Camino Real Ste L
Tanforan Shell 1199 El Camino Real
Target Store T1054 1150 El Camino Real
The Permanente Medical Group 901 El Camino Real
The Permanente Medical Group Tax Dept. 801 Traeger Ave
Victory Honda of San Bruno 345 El Camino Real
Vince's Shell Fish Co.Inc. 1063 Montgomery Ave
Walgreens#2939 333 El Camino Real
You Tube 999 Bayhill Dr
YouTube Inc. 901 Cherry Ave
Source : City of San Bruno Business Tax
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Property Tax Levies and Collections
For the last ten fiscal years
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy 2012 4,594,121 $ 4,594,121 $ 100% -
4,594,121$ 100%
2013 4,821,711 4,821,711 100% -
4,821,711
100%
2014 5,057,412 5,057,412 100% -
5,057,412
100%
2015 5,477,246 5,477,246 100% -
5,477,246
100%
2016 5,812,961 5,812,961 100% -
5,812,961
100%
2017 6,241,601 6,241,601 100% -
6,241,601
100%
2018 6,783,529 6,783,529 100% -
6,783,529
100%
2019 7,059,221 7,059,221 100% -
7,059,221
100%
2020 7,609,212 7,609,212 100% -
7,609,212
100%
2021 8,003,597 8,003,597 100% -
8,003,597
100%
Source: City financial records
Note: Amounts reported and collected under the Teeter Plan in which all taxes are distributed to the City in the year of the levy with the County of San Mateo retaining any interest or penalties on uncollected balances.

Collected within the
Fiscal Year of the Levy Total Collections to Date
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Ratios of Outstanding Debt by Type
For the last ten fiscal years
Fiscal
Year Pension Fire Apparatus
Ended Obligation 2017 Cable Router
June 30, Capital Leases Bonds Capital Lease Capital Lease Subtotal 2012 240,306$ -$ -$ 240,306$
2013
208,898 12,549,749 - 12,758,647
2014 176,562 11,791,267 - 11,967,829
2015 143,273 11,025,785 - 11,169,058
2016 109,001 10,250,302 - 10,359,303
2017 73,719 9,454,820 784,846 10,313,385 2018 37,395 8,644,338 616,132 9,297,865 2019 - 7,808,856 444,214 1,283,408 9,536,478 2020 -
6,948,374 269,031 980,344 8,197,750
2021 -
6,062,892 90,522 665,719 6,819,133
Fiscal Debt As
Year Wastewater Wastewater Cable TV City of South Total Percent of Ended Certificates of Revenue Wastewater Water Capital Lease San Francisco Primary Debt Per Personal June 30, Participation Refunding
Bond
Revenue
Bonds
Revenue
Bonds Obligation Sewer Plant
Loan Subtotal Government Population Capita Income
2012 8,035,000$ - $
-$
-$
874,252$ 11,315,552$ 20,224,804$ 20,465,110$ 42,451 482.09 1.4% 2013 7,800,000 - - - 467,213 10,360,416 18,627,629 31,386,276 42,828 732.84 2.1% 2014 - 7,294,634 - -
36,946 9,380,027 16,711,607 28,679,436 42,355 677.12 1.9% 2015 - 6,986,758 - - -
8,571,181 15,557,939 26,726,997 44,409 601.84 2.3% 2016 - 6,708,883 - - -
7,741,648 14,450,531 24,809,834 45,360 546.95 1.5% 2017 - 6,426,008 - - -
6,890,896 13,316,904 23,630,289 45,295 521.70 1.4% 2018 - 6,128,132 27,096,017 12,861,644 -
6,018,384 52,104,177 61,402,042 46,085 1,332.37

3.3%
2019 - 5,825,258 26,763,483 12,700,089 -
5,123,552 50,412,382 59,948,860 45,257 1,324.63

3.1%
2020 - 5,512,381 26,235,949 12,448,534 -
4,205,832 48,402,697 56,600,446 45,454 1,245.22 2.8% 2021 - 5,184,508 25,693,415 12,191,979 -
3,264,636 46,334,538 53,153,671 45,454 1,169.39

2.5%
Fiscal
Year
Ended Certificates of 2019 Lease
June 30, Participation Revenue Bonds
2012 7,680,000$ -$
2013
7,430,000 -
2014 7,170,000 -
2015 6,895,000 -
2016 6,610,000 -
2017 6,310,000 -
2018 5,995,000 -
2019 - 5,299,064
2020 -
4,956,642
2021 -
4,579,220
Source: City financial records
Governmental Activities
Business-type Activities
Fiduciary Funds
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Direct and Overlapping Governmental Activities Debt
June 30, 2021
2020-21 Assessed Valuation: 8,978,895,657$
Total Debt City's Share of
Overlapping Tax and Assessment Debt: 6/30/21 % Applicable (1) Debt 6/30/21 San Mateo Community College District 761,305,961$ 3.507% 26,699,000$ South San Francisco Unified School District 163,485,887 1.019 1,665,921 San Mateo Union High School District 680,210,648 9.839 66,925,926 San Bruno Park School District 51,781,252 93.021 48,167,438 Millbrae School District 49,459,527 2.857 1,509,999
Total overlapping tax and assessment debt 144,968,284$
Ratios to 2020-21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.61%
Direct and Overlapping General Fund Debt:

San Mateo County General Fund Obligations 487,114,345$ 3.507% 17,083,100$ San Mateo County Board of Education Certificates of Participation 6,840,000 3.507 239,879 San Mateo County Flood Control District Certificates of Participation 15,425,000 6.472 998,306 South San Francisco Unified School District Certificates of Participation 3,185,000 1.019 32,455 San Bruno Park School District Lease Revenue Bonds 2,485,000 93.021 2,311,572 City of San Bruno Fire Apparatus 2017 Lease 269,031 100.00 90,522 City of San Bruno Pension Obligation Bonds 6,948,374 100.00 6,062,892 City of San Bruno CATV Router Lease 980,344 100.00 665,719 Total direct and overlapping general fund debt 27,484,445 Total Direct Debt 6,819,133
Total Overlapping Debt 165,633,596
Combined Total Debt (2) 172,452,729$ (2)
Ratios to Adjusted Assessed Valuation:

Total Direct Debt ($6,819,133) 0.08%
Combined Total Debt 1.92%
State School Building Aid Repayable as of 6/30/21 -$
Source: California Municipal Statistics & City Financial Statement (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation bonds and non-bonded capital lease obligations.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
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Legal Debt Margin Information
Last Ten Fiscal Years
(in thousands of dollars)
Legal Debt Margin Calculation for Fiscal Year 2021 (1)
Gross Assessed Valuation 8,978,895,657$
Bonded Debt Limit (3.75% of Assessed Value) 336,708,587 Less Amount of Debt Applicable to Limit -
Legal Bonded Debt Margin 336,708,587$
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Debt limit 782,820$ 798,292 $ 842,892 $ 906,586$ 967,607 $ 260,349 $ 275,518 $ 295,778 $ 315,178 $ 336,709 $ Total net debt applicable to limit 00 00 0 0 0 0 0 0
Legal debt margin 782,820$ 798,292 $ 842,892 $ 906,586 $ 967,607 $ 260,349 $ 275,518 $ 295,778 $ 315,178 $ 336,709 $ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Note:
(1) California Government Code, Section 43605 sets the debt limit at 15% of gross assessed valuation. The Code section was enacted when assessed valuations were based on 25% of full market value.

This has since changed to 100% of full market value. Thus, the limit shown is 3.75%(one-fourth the limit of 15%).

FY2016-17 and onwards, the debt limit is at 3.75%.

Source: California Municipal Statistics
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Pledged Revenue Coverage
For the last ten fiscal years
Fiscal
Year Less: Net
Ended Gross Operating Available
June 30, Revenues (1) Expenses (2) Revenue Principal Interest Coverage 2012 11,341,256$ 6,539,668 $ 4,801,588 $ 225,000 $ 392,915 $ 7.77 2013 12,279,292 6,950,728 5,328,564 235,000 383,515 8.62 2014 (3) 15,549,816 6,748,392 8,801,424 245,000 - 35.92 2014 (3) 15,549,816$ 6,748,392 $ 8,801,424 $ - $ 257,968$ 34.12 2015 15,087,098 7,947,063 3,248,307 290,000 285,188 5.65 2016 15,954,642 8,355,894 7,598,748 260,000 277,388 14.14 2017 15,923,694 9,305,503 6,618,191 265,000 268,775 12.40 2018 17,032,182 8,431,394 8,600,788 280,000 258,975 15.96 2019 18,643,453 8,039,977 10,603,476 285,000 247,575 19.91 2020 18,947,384 8,955,800 9,991,584 295,000 235,775 18.82 2021 18,710,405 8,990,002 9,720,403 310,000 222,600 18.25 2018 17,032,182$ 8,431,394$ 8,600,788$ -$ 573,459$ 15.00 2019 18,643,453 8,039,977 10,603,476 245,000 999,700 8.52 2020 18,947,384 8,955,800 9,991,584 440,000 986,500 7.00 2021 18,710,405 8,990,002 9,720,403 455,000 972,850 6.81 2018 15,561,896$ 8,819,147$ 6,742,749$ -$ 272,194$ 24.77 2019 17,721,522 9,032,331 8,689,191 120,000 474,400 14.62 2020 17,614,884 9,715,615 7,899,269 210,000 468,100 11.65 2021 18,031,439 10,443,967 7,587,472 215,000 461,650 11.21 Note:
(1) Gross revenues include nonoperating interest income (2) Operating expenses do not include interest, depreciation, or amortization expenses. (3) In Fiscal Year 2013-14, the City authorized the sale of Wastewater Revenue Refunding Bonds to refinance the outstanding 2002 Certificates of Participation
Source: City financial records
2017 Wastewater Revenue Bonds
2017 Water Revenue Bonds
2013 Wastewater Revenue Refunding Bonds
Debt Service
Business-type Activities
Wastewater Certificates of Participation
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Demographic and Economic Statistics
Last ten calendar years
Per
Total Capita County City
Personal Personal Median **School Unemployment Unemployment Year Population
(1) Income (2) Income (2) Age(3) Enrollment Rate(4) Rate(4) 2012 42,451 1,447,664,002$ 34,102 $ 37.3 3,747 7.1% N/A 2013 42,828 1,516,154,028 35,401 38.8 3,790 6.7% 5.8% 2014 42,355 1,521,349,245 35,919 38.7 3,888 5.4% 4.7% 2015 44,409 1,165,025,706 26,234 38.5 3,900 3.2% 3.1% 2016 45,360 1,609,096,610 36,458 38.7 3,833 3.4% 3.3% 2017 45,295 1,730,857,835 38,213 39.2 3,774 3.0% 2.9% 2018 46,085 1,873,078,740 40,644 39.2 3,854 2.2% 2.3% 2019 45,257 1,940,212,847 42,871 39.3 3,692 1.7% 1.8% 2020 45,454 2,026,702,952 44,588 39.6 3,679 11.1% 13.4% 2021 44,936 2,162,634,872 48,127 39.3 3,462 6.9% 8.1% Source: 2011-12 and prior, previously published ACFR Report Source: Avenu Insights & Analytics
1) Population projections are provided by the State Department of Finance Projections. 3) Median age reflects the U.S. Census data estimation table **School enrollment reflects the total number of students enrolled in Capuchino High & San Bruno Park 4) Unemployment rates are provided by the EDD, Labor Market Information Division San Mateo County
San Mateo County
2) Income data is provided by the U.S. Census Bureau, 2010 American Community Survey 141
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Principal Employers
Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
Employer Employees Rank Employment Employees Rank Employment You Tube, Inc* 2,565 1 9.87% 558 2.27%
Walmart eCommerce Corporate Office 2,000 1 7.69%
Skyline College** 402 3 1.55%
Artichoke Joe's Casino 384 4 1.48%
City of San Bruno 232 5 0.89%
San Bruno Park School District** 215 6 0.83%
Target Store 208 7 0.80% 258 1.05%
Lucky Supermarkets 188 8 0.72%
Lowe's HIW, Inc. 170 9 0.65% 146 0.59%
Church of the Highlands 100 10 0.38%
Cisco Ironport Systems, Inc
Lash Group, Inc 332 1.35%
Sears, Roebuck & Co*** 264 1.07%
CBR Systems Inc 152 0.62%
Lunardi's Market 77 0.31%
Davita RX 74 0.30%
Melody Toyota 71 0.29%
Vantagepoint Venture Partners 45 0.18%
Total Top Employers 6,464 24.86% 1,977 8.04% Total City Labor (1) 26,000 24,600
Source: Avenu Insights & Analytics
2011-12: Previously published CAFR Report
Results based on direct correspondence with city's local businesses. (1) Total City Employment provided by EDD Labor Force Data. *Includes FT, TVCs and Interns
**Includes both full and part time employees
***Employers were ranked base on the City's business license gross, not by number of employees 2020-21 2011-12***
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Full-time Equivalent City Employees by Function/Program Last Ten Fiscal Years
(Fiscal year ended June 30)
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Fund
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 City Clerk 1.75 1.75 1.75 1.75 1.75 1.75 1.75 2.00 2.00 2.00 City Treasurer 1.00 1.00 1.00 1.00 1.00 1.00 0.50 - - - Legal Services 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 City Manager 2.00 2.00 3.00 3.00 3.00 3.00 3.00 4.00 4.00 4.00 Human Resources 1.75 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 Finance
Administration 5.00 4.50 5.00 5.00 5.00 5.50 5.50 5.00 5.00 5.00 Revenue Services 6.00 6.00 5.00 5.00 5.00 4.50 4.50 5.00 5.00 5.00 Police 59.00 60.00 61.50 62.50 62.50 64.00 65.00 68.00 69.00 72.00 Fire 32.50 32.75 32.75 33.30 33.40 35.00 35.00 35.00 36.00 36.00 PublicWorks
Admin. & Engineering 6.75 6.75 6.70 6.70 6.70 6.70 6.70 6.70 6.70 5.65 Streets Maintenance 5.05 5.05 5.10 5.70 5.80 5.80 5.80 5.70 5.70 5.65 Community Development
Planning 1.75 3.50 4.50 4.50 4.25 5.75 5.25 5.25 5.25 5.25 Building 4.25 6.50 6.50 7.50 7.75 8.25 8.75 8.75 10.75 7.75 Parks & Recreation Services
Recreation 4.05 4.00 4.00 4.75 4.90 4.90 4.90 4.90 4.90 4.95 Parks Maintenance 13.35 13.80 13.80 14.30 13.05 13.05 13.05 15.05 15.05 14.85 Senior Services 1.25 3.35 3.35 3.45 3.75 3.65 3.65 3.65 3.65 3.90 Library Services 8.75 7.65 7.65 7.55 7.75 7.85 7.85 7.85 7.85 7.80 Subtotal 160.45 167.10 170.10 174.50 174.10 179.20 179.70 185.35 189.35 188.30 Special Revenues
Solid Waste 0.35 0.35 0.35 0.35 0.45 0.45 0.45 0.45 0.45 0.45 RDA Operation 3.60 - - - - - - - - - Successor Agency to SB RDA N/A 1.00 - - - - - - - - RDA Low/Mod Housing 1.90 - - - - - - - - - Subtotal 5.85 1.35 0.35 0.35 0.45 0.45 0.45 0.45 0.45 0.45 Internal Services
Central Garage 2.85 2.85 2.35 2.35 2.35 2.35 2.35 2.35 2.35 2.60 Buildings and Facilities 6.10 5.70 5.70 6.45 7.05 7.05 7.05 8.05 8.05 8.85 Technology Support 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Self-Insurance 1.00 1.00 0.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Subtotal 12.95 12.55 11.55 12.80 13.40 13.40 13.40 14.40 14.40 15.45 Enterprise Funds
Water Enterprise 17.30 17.30 16.95 17.45 17.45 17.95 17.95 17.95 17.95 17.95 Stormwater Enterprise 3.65 3.65 3.75 4.15 3.95 3.95 3.95 4.05 6.05 6.05 Wastewater Enterprise 15.55 15.55 15.80 16.30 16.30 16.80 16.80 16.80 16.80 16.80 Cable Enterprise 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Subtotal 56.50 56.50 56.50 57.90 57.70 58.70 58.70 58.80 60.80 60.80 Glenview Funds
Crestmoor (Glenview) Recovery 5.00 4.25 3.70 3.70 2.00 0.50 - - - Subtotal N/A 5.00 4.25 3.70 3.70 2.00 0.50 - - - Total Positions (all funds) 235.75 242.50 242.75 249.25 249.35 253.75 252.75 259.00 265.00 265.00 Source: Adopted City Budget
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Operating Indicators by Function/Program
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police
Calls for Service 23,242 24,405 30,131 32,610 36,144 31,333 42,057 47,429 44,684 41,406 Physical arrests 1,371 989 1,071 1,224 1,280 1,311 1,087 1,627 1,240 845 Parking violations** 11,683 11,559 8,710 8,794 11,675 15,525 14,205 18,252 9,848 13,396 Traffic collisions 387 380 369 464 452 384 325 338 237 233 Moving citations 2,128 1,422 2,659 2,144 2,221 2,225 2,424 2,447 2,199 1,953 Fire
Number of stations 2222222222
Number of calls answered 3,809 3,916 3,148 3,159 3,574 4,288 3,874 4,006 4,236 4,092 Number of inspection conducted** 1,381 1,358 1,326 1,375 1,420 1,360 1,307 1,415 1,621 1,444

Public Works
Street repair (sq. ft.) 4,304 3,923 4,792 14,697 861,150 145,204 539,343 816,331 80,999 29,457 Potholes repaired 1,016 2,311 2,670 2,185 1,618 2,333 1,442 1,905 2,546 2,735 Sidewalk repair (sq. ft) 2,215 896 11,625 14,980 651 262 119,922 3,624 8,001 2,003 Sidewalk curb&gutter repair (ft) 62 85 927 1,397 109 886 26,041 700 1,269 1,234 Street light poles replaced 6 14 9 13 65 44 50 10
Community Development:

Plans checks 384 340 340 527 553 445 549 688 622 162
Permits Issued 1,375 1,284 1,283 1,339 1,622 1,500 1,468 1,455 1,276 1,471 Parks & recreation:

Picnic rentals 813 673 934 954 859 842 888 820 532 107
Number of trees planted * * 63 120 75 100 100 100 71 100 Linear miles of medians maintained * * 7.35 7.35 7.35 7.35 7.35 7.35 7.35 7.35 Library:

Library circulation 372,162 388,066 358,362 354,047 329,210 337,671 334,711 353,015 294,333 165,059 Library visits 239,649 228,835 248,563 219,343 182,263 179,150 190,466 205,851 161,907 10,813 Water
New service connections 271 265 442 263 285 363 243 282 238 299 Gallons purchased(millions of gallons) 796 725 600 477 507 948 950 1,102 907 2,647 Stormwater
Number of curb miles swept * * 5,540 5,540 5,540 5,540 5,540 5,540 5,540 5,540 Number of catch basins cleaned and inspected * * 1,223 1,223 1,223 1,223 1,550 2,120 2,680 2,680 Cable
Number of Internet service subscribers * * 6,085 6,111 6,337 6,460 6,600 7,260 7,109 7,300 Number of new customer installations *
* 953 1,121 1,208 1,031 1,200 1,500 1,112 1,112 * Historical data is not available
**Calendar year as of October 31
Source: Various City department records. Started tracking by function in 2011 144
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City of San Bruno, California
Capital Asset Statistics by Function/Program
Last Seven Fiscal Years
(Fiscal year ended June 30)
Function/Program 2015 2016 2017 2018 2019 2020 2021
Public Safety
Number of police stations 1 1 1 1 1 1 1 Number of fire stations 2 2 2 2 2 2 2 Public Works
Miles of streets 89 89 89 89 89 89 89 Average Citywide Pavement Condition Index (PCI) Score 65 64 62 61 66 62 65 Miles of Sidewalk 178 178 178 178 178 178 178 Number of street lights * * * * 1,909 1,909 1,909 Number of traffic signals 17 17 17 17 17 17 17 Number of street signs * * * * 4,943 5,240 5,245 Water
Miles of water mains * * * * 120 120 120 Number of fire hydrants * * * * 949 949 950 Number of water wells 4 4 4 4 4 4 4 Number of pump stations 8 8 8 8 8 8 8 Number of water tanks 8 8 8 8 8 8 8 Number of pressure regulator stations 26 26 26 26 26 26 26 Wastewater/Sewer
Miles of sanitary sewers main * * * * 89 89 89 Miles of sewer lift (pump) stations 6 6 6 6 6 6 6 Stormwater
Number of storm sewer main 36 36 36 36 36 36 36 Number of trash capture devices 55 55 55 55 277 284 287 Leisure and Culture
Number of parks 18 18 18 18 18 18 19 Acres of maintained landscaped areas 96 96 96 96 97 97 97 Acres of open space 128 128 128 128 128 128 128 Number of trees * 4,700 6,300 6,300 6,777 6,777 6,777 Number of libraries 1 1 1 1 1 1 1 Number of senior centers 1 1 1 1 1 1 1 Number of recreation center facilities 1 1 1 1 1 1 1 Note:
* Historical data is not available
Source: City of San Bruno
145
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City of San Bruno
Measure A Funds

Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes

For the Year Ended June 30, 2021

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INDEPENDENT AUDITOR'S REPORT ON MANAGEMENT’S ASSERTION

Honorable Mayor and Members of City Council of the
City of San Bruno, California

We have examined management’s assertion, included in acco mpanying Management’s Report on Compliance with the Agreement for Distribution of San Mateo C ounty Measure A Funds for Local Transportation Purposes (the Agreement) between the City of San Bruno and the San Mateo County Transportation Authority dated March 10, 2009, that the City complied with the requirements of the Agreement during the year ended June 30, 2021. Mana gement is responsible for that assertion. Our responsibility is to express an opinion on management’s assertion about the City’s compliance based upon our examination.

Our examination was conducted in acc ordance with the attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether management’s assertion that the City complied with the requirements of the Agreement is fairly stated, in al l material respects. The na ture, timing and extent of procedures selected depend on our judgment, including an assessment of the risks of material misstatement of management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide legal determination of the City’s compliance with specified requirements.

In our opinion, management’s assertion that the City complied with the requirements of the Agreement for the year ended June 30, 2021 is fairly stated, in all material respects.

This communication is intended solely for the information and use of management and the City Council and is not intended to be and should not be used by anyone other than these specific parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.

Pleasant Hill, California
December 15, 2021

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Measure A
. Transportation
Tax
Fund
ASSETS:

Cash and investments $1,106,230
Total assets $1,106,230
FUND BALANCES:

Restricted $1,106,230
Total fund balances 1,106,230
Total liabilities and fund balances $1,106,230

CITY OF SAN BRUNO

SCHEDULE OF MEASURE A FUNDS

BALANCE SHEET
JUNE 30, 2021
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Measure A
Transportation
Tax
Fund
REVENUES:

Measure A Sales Tax $997,205
Investment Income 5,835
Total revenues 1,003,040

REVENUES OVER (UNDER)
EXPENDITURES 1,003,040
OTHER FINANCING SOURCES (USES):

Transfers in to return funding for completed street improvement capital projects 793,420 Transfers out for Street Improvement Capital Projects:

Streetlight Pole Replacement Program (209,875)
Scott Street Grade Separation (85,830)
I-380 Congestion Improvement (17,500)
Downtown Parking Lot Condition Evaluation (98,459)
Traffic Safety and Parking Committee Studies (50,000)
2019-20 Slurry Seal (342,205)
2019-20 Sidewalk Repair Project (82,765)
2020-21 Street Rehabilitation Project (615,000)
Huntington/San Antonio Bicycle Corridor (100,000)
Huntington Avenue Bicycle & Pedestrian Improvements (60,000) Transit Corridor Pedestrian Connection Improvement - ECR/Angus Avenue (65,993) Accessible Pedestrian Ramps (142,420)
Safe Routes to School Plan (32,251)
Huntington/San Antonio Street Rehabilitation (85,000)
Pedestrian Safety & Traffic Calming Program (1,109,758) Transfers out for General Fund Projects:

Emergency Traffic Signal Pole Replacement (79,325)
Total other financing sources (uses) (2,382,961)
Net change in fund balances (1,379,921)
FUND BALANCES:

Beginning of year 2,486,151
End of year 1,106,230$

SCHEDULE OF REVENUES, EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2021

AND CHANGES IN FUND BALANCE

CITY OF SAN BRUNO

SCHEDULE OF MEASURE A FUNDS
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CITY OF SAN BRUNO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the City of San Bruno’s Measure A Fund conform to accounting principles generally accepted in the United States of Ameri ca as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants.

Scope of Presentation

The accompanying schedule presents the Balance Sheet and Schedule of Revenues, Expenditures and Changes in Fund Balance of the Measure A Fund of the City of San Bruno that represent funds received according to the agreement between the City of San Bruno and San Mateo County Transportation Authority for Local Transportation Purposes dated March 10, 2009.

Basis of Accounting

Basis of accounting refers to when revenues and ex penditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the tim ing of measurement made, regardless of the measurement focus applied.

The Schedule of Revenues, Expendi tures and Change in Fund Balance of the Measure A Fund is accounted for using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basi s of accounting, revenues are recognized in the accounting period in which they become both measurab le and available to finance expenditures of the current fiscal period. Expenditures are recognized in the accounting period in which the liability is incurred.

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FINANCE DEPARTMENT
567 El Camino Real, San Bruno, CA 94066-4299
Voice: (650) 616-7080  Fax: (650) 876-0256
http://sanbruno.ca.gov
December 15, 2021

San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070

Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure A Funds for Local Transportation Purpose

The City of San Bruno is responsible for complying with the Agreement for Distribution of San Mateo County Measure A Funds for Local Transportation Purposes (the Agreement) between the City and the San Mateo County Transportation Authority entered into on March 10, 2009. The Agreement states that in return for receiving an annual allocation of a specified portion of the retail transactions and use tax approved by Measure A – San Mateo County Transportation Expenditure Plan (the Measure), the City agrees that funds, “shall not be used to replace funds previously provided by property tax or other local revenues for public transportation purposes, and that City will limit the use of funds provided pursuant to this Agreement to the improvement and maintenance of local transportation, including streets and road improvements.”

With respect to compliance with the Agreement, management attests to the following for the year ended June 30, 2021:

 Management is responsible for establishing and maintaining an effective internal control structure with respect to compliance with the Agreement;

 Management is responsible for complying with the Agreement;

 Management has evaluated the City’s compliance with the requirements of the Agreement;

 All transactions, as summarized in the preceding Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance for the Year Ended June 30, 2021, are in compliance with the Agreement.

__________________________ ________________________
Finance Director Accounting Manager

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City of San Bruno
Measure W Funds

Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for
Local Transportation Purposes in Accordance
with the San Mateo County Congestion Relief Plan

For the Year Ended June 30, 2021

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INDEPENDENT AUDITOR'S REPORT ON MANAGEMENT’S ASSERTION

Honorable Mayor and Members of City Council of the
City of San Bruno, California

We have examined management’s assertion, included in accompanying Management’s Report on Compliance with the Agreement for Distribution of San Mateo C ounty Measure W Funds for Local Transportation Purposes in Accordance with the San Mateo C ounty Congestion Relief Plan (the Agreement) between the City of San Bruno and the San Mateo County Transportation Authority dated September 24, 2019, that the City complied with the requirements of the Agreement during the year ended June 30, 2021. Management is responsible for that assertion. Our responsibility is to express an opinion on management’s assertion about the City’s compliance based upon our examination.

Our examination was conducted in acc ordance with the attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether management’s assertion that the City complied with the requirements of the Agreement is fairly stated, in al l material respects. The nature, timing and extent of procedures selected depend on our judgement, including an assessment of the risks of material misstatement of management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide legal determination of the City’s compliance with specified requirements.

In our opinion, management’s assertion that the City complied with the requirements of the Agreement for the year ended June 30, 2021 is fairly stated, in all material respects.

This report is intended solely for the information and use of management and the City Council and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.

Pleasant Hill, California
December 15, 2021

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Measure W
. Transportation
Tax Fund
ASSETS:

Cash and investments $417,242
Taxes receivables 95,599
Total assets $512,841
FUND BALANCES:

Restricted for transportation $512,841
Total fund balances $512,841

CITY OF SAN BRUNO

SCHEDULE OF MEASURE W FUNDS

BALANCE SHEET
JUNE 30, 2021
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Measure W
Transportation
Tax Fund
REVENUES:

Measure W Sales Tax $466,674
Investment Income 2,896
Total revenues 469,570
TRANSFERS OUT:

Capital Improvements Projects:
2020-21 Street Rehabilitation Project 400,000
Total transfers out 400,000
Net Change in Fund Balance 69,570
FUND BALANCES:

Beginning of year 443,271
End of year $512,841

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2021

CITY OF SAN BRUNO

SCHEDULE OF MEASURE W FUNDS
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CITY OF SAN BRUNO

FINANCE DEPARTMENT
567 El Camino Real, San Bruno, CA 94066-4299
Voice: (650) 616-7080  Fax: (650) 876-0256
http://sanbruno.ca.gov
December 15, 2021

San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070

Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes in accordance with the San Mateo County Congestion Relief Plan

The City of San Bruno is responsible for complying with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes in Accordance with the San Mateo County Congestion Relief Plan (the Agreement) between the City and the San Mateo County Transportation Authority entered into on September 24, 2019. The Agreement states that in return for receiving an annual allocation of a specified portion of the retail transactions and use tax approved by Measure W – San Mateo County Transportation Expenditure Plan (the Measure), the City agrees that funds shall not be used to replace funds previously provided for public transportation investments, and that City will limit the use of funds provided pursuant to this Agreement to invest in major arterial and local roadway improveme nts in key congested
areas throughout the County, focusing on improving safety, reducing congestion, and supporting all modes of travel on the County's roadway system.

W
ith respect to compliance with the Agreement, management attests to the following for the year ended June 30, 2021:

 Management is responsible for establishing and maintaining an effective internal control structure with respect to compliance with the Agreement;

 Management is responsible for complying with the Agreement;

 Management has evaluated the City’s compliance with the requirements of the Agreement;

 All transactions, as summarized in the preceding Balance Sheet and Schedule of Revenues, Expenditures and Changes in Fund Balance for the Year Ended June 30, 2021, are in compliance with the Agreement.

__________________________ ________________________
Finance Director Accounting Manager

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C

ITY OF SAN BRUNO

MEMORANDUM ON INTERNAL CONTROL
AND

REQUIRED COMMUNICATIONS
F
OR THE YEAR ENDED JUNE 30, 2021
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CITY OF SAN BRUNO

MEMORANDUM ON INTERNAL CONTROL
AND

REQUIRED COMMUNICATIONS

For The Year Ended June 30, 2021

Table of Contents

Page

Memorandum on Internal Control ...................................................................................................... 1

Schedule of Material Weaknesses .............................................................................................. 3

Schedule of Other Matters .......................................................................................................... 5

Required Communications ................................................................................................................. 15

Significant Audit Matters:

Accounting Policies .......................................................................................................... ........ 15

Unusual Transactions, Controversial or Emerging Areas ...................................................... 17

Accounting Estimates ............................................................................................................... 17

Disclosures ................................................................................................................................ 18

Difficulties Encountered in Performing the Audit ................................................................. 18

Corrected and Uncorrected Misstatements ............................................................................. 18

Disagreements with Management............................................................................................ 18

Management Representations ................................................................................................... 18

Management Consultations with Other Independent Accountants ........................................ 18

Other Audit Findings or Issues ............................................................................................... .. 19

Other Information Accompanying the Financial Statements ....................................................... 19

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MEMORANDUM ON INTERNAL CONTROL

To the City Council of
the City of San Bruno, California

In planning and performing our audit of the basic financial statements of the City of San Bruno (City), California, as of and for the year ended June 30, 2021 in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore material weaknesses or significant deficiencies may exist that were not identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. However, as discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct , misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected , on a timely basis. We consider the deficiencies in internal control included on the Schedule of Material Weaknesses to be material weaknesses.

Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.

Management’s written responses included in this report have not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.

This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass -through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
December 21, 2021
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MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF MATERIAL WEAKNESSES
20 21-01: CityNet Enterprise Fund Advance Balance and Net Deficit Cri
teria: When one fund provides a loan to another fund, the repayment of that loan should be reasonably certain and within a specific time.

C
ondition: The General Fund has an advance loan with the CityN et Enterprise fund in the amount of $14.1 million for various capital improvements. This is an increase of $491,000 over last year. In the five fiscal years, the CityNet Enterprise fund has shown the following net operating losses and deficit Net Position:

Th
is issue was first commented in fiscal 2018 and has been repeated since.

Ca
use: The CityNet Enterprise fund customer base declined further in fiscal year 2020-21. Additional operating loss was attributable to uncollected subscriber revenues as a result of the COVID moratorium on disconnections.

Effe
ct: The CityNet Enterprise fund might not be able to accumulate enough funds to pay back the General Fund within a reasonable time.

Reco
mmendation: The City should examine its business plan for the fund and determine at what point repayment of this money will commence and to make sure that the enterprise fund is sustainable.

M
anagement’s Response : Management concurs with this recommendation and steps have been taken this year to improve revenue collections and subscription margins. With the adoption and implementation of the new, internet focused business plan in 2019, accompanied by a new rate structure and continuously implemented vendor cost controls, progress has been made annually in reducing the net operating loss since 2018. Management expects continued reduction of operating losses and improvement of subscription margins going forward, supported by the launch of asset l ight, state of the art, internet delivered TV in the second half of fiscal 2020 -21. To accelerate repayment of the interfund loan and implement a repayment timeline, an improvement is necessary to the Enterpri se’s aging internet and TV delivery technology to make the Enterprise fully competitive and attract more customers. This improvement would be accomplished by the rollout of fiber technology. Financial options to fund the rollout are being assessed.

Fiscal Year
Ending
Net Operating
Loss
Ending Net
P osition
2021 ($904,625) ($17, 878,960)
2020 (1,746,354) (16,972,152)
2019 (2,420,476) (15,222,735)
2018 (2,461,627) (12,798,321)
2017 (1,717,008) (10,275,885)
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MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS

NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE T
he following comment represents new pronouncements taking affect in the next few years. We cite them here to keep you informed of developments:

E
FFECTIVE FISCAL YEAR 2021/22:

GASB 87 – Leases
T
he objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

A l
ease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange -like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meets this definition should be accounted for under the leases guidance, unless specifically excluded in this Statement.

GASB 89 – Accounting for Interest Cost Incurred before the End of a Construction Period Th
e objectives of this Statem ent are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period.

Th
is Statement e stablishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5 –22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in t he historical cost of a capital asset reported in a business-type activity or enterprise fund.

T
his Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. 5 250 of 299

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 92 – Omnibus 2020
T
he objectives of this Statement are to enhance comparability in accounting and financial repo rting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about the following:
• T
he effective date of Statement No. 87, Leases, and Implementation Guide No. 2019 -3, Leases, for interim financial reports
• Reporting of intra -entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan
• The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certai n
P
rovisions of GASB Statements 67 and 68 , as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans , as amended, to reporting assets accumulated for postemployment benefits
• The applicability of certain requirements of Statement No. 84, Fiduciary Activities , to postemployment benefit arrangements
• Measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a gove
rnment acquisition
• Reporting by public ent ity risk pools for amounts that are recoverable from reinsurers or excess insurers
• Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature
• Terminology used to refer to derivative instruments.

GASB 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans–An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 T
he primary objectives of t his Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans.
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MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Sect ion 457 Deferred Compensation Plans —An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 (Continued) T
his Statement requires that for purposes of determining whether a primary government is financially accountable for a potential component unit, except for a potential component unit that is a defined contribution pension plan, a defined contribution OPEB plan, or an other employee benefit plan (for example, certain Section 457 plans), the absence of a governing boa rd should be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform.

Th
is Statement also requires that the financial burden criterion in pa ragraph 7 of Statement No. 84, Fiduciary Activities, be applicable to only defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement No. 67, Financial Reporting for Pension Plans, or paragraph 3 of Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, respectively.

T
his Statement (1) requires that a Section 457 plan be classified as either a pension plan or an other employee benefit plan depending on whether the plan meets the definition of a pension plan and (2) clarifies that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those arrangements should be reported as fiduciary activities.

T
his Statement supersedes the remaining provisions of Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, as amended, regarding investment valuation requirements for Section 457 plans. As a result, investments of all Section 457 plans should be measured as of the end of the plan’s reporting period in all circumstances.

H
ow the Changes in this Statement will Improve Financial Reporting T
he requirements of thi s Statement will result in more consistent financial reporting of defined contribution pension plans, defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs associated with reporting those plans. The requirements also will enhance the relevance, consistency, and comparability of (1) the information related to Section 457 plans that meet the definition of a pension plan and the benefits provided through those plans and (2) investment information for all Section 457 plans.
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MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
E
FFECTIVE FISCAL YEAR 2022/23:

GASB 91 – Conduit Debt Obligations
T
he primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and im proving required note disclosures.

A
conduit debt obligation is defined as a debt instrument having all of the following characteristics:
• There are at least three parties involved:
(1) an
issuer
(2) a
third-party obligor, and
(
3) a
debt holder or a debt trustee.
• The issuer and the third-party obligor are not within the same financial reporting entity. • The debt obligation is not a parity bond of the issuer, nor is it cross -collateralized with other debt of the issuer.
• The third-party obligor or its ag ent, not the issuer, ultimately receives the proceeds from the debt issuance.
• The third -party obligor, not the issuer, is primarily obligated for the payment of all amounts associated with the debt obligation (debt service payments).

A
ll conduit debt obl igations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so.

A
n issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstan ding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the i ssuer to reevaluate its willingness or ability to support the obligor’s debt service through a voluntary commitment.
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MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 91 – Conduit Debt Obligations (Continued)
T
his Statement also addresses arrangements—often characterized as leases —that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third-party obligors in the course of their activities.

Payments from third -party obligor s are intended to cover and coincide with debt service payments.

During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements.

I
ssuers should not report those arrangements as leases, nor should they recognize a liability for the related conduit debt obligations or a receivable for the payments related to those arrangements. In addition, the following provisions apply:
• If the title passes to the third -party obligor at the end of the arrangement, an issuer should not recognize a capital asset.
• If the title does not pass to the third -party obligor and the third party has exclusive use of the entire capital asset during the arrangement, the issuer should not recognize a capital asset until the ar
rangement ends.
• If the title does not pass to the third- party obligor and the third party has exclusive use of only portions of the capital asset during the arrangement, the issuer, at the inception of the arrangement, shoul d recognize the entire capital asset and a deferred inflow of resources. Th e
d
eferred inflow of resources should be reduced, and an inflow recognized, in a systematic and rational manner over the term of the arrangement.

T
his Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers’ conduit debt obligations and a description of each type of commitment. Issuers that re cognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period.

H
ow the Changes in this Statement will Improve Financial Reporting Th
e requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations.
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MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements T
he primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definiti on of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement.

T
his Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange -like transaction.

PPPs
– This Statement require s that PPPs that meet the definition of a lease apply the guidance in Statement No. 87, Leases, as amended, if existing assets of the transferor that are not required to be improved by the operator as part of the PPP arrangement are the only underlying PPP assets and the PPP does not meet the definition of an SCA. This Statement provides accounting and financial reporting requirements for all other PPPs: those that either (1) meet the definition of an SCA or (2) are not within the scope of Statement 87, as amended (as clarified by this Statement). The PPP term is defined as the period during which an operator has a noncancelable right to use an underlying PPP asset, plus, if applicable, certain periods if it is reasonably certain, based on all relevant factors, that the transferor or the operator either will exercise an option to extend the PPP or will not exercise an option to terminate the PPP.

A t
ransferor generally should recognize an underlying PPP asset as an asset in financial statements prepared using the economic resources measurement focus. However, in the case of an underlying PPP asset that is not owned by the transferor or is not the underlying asset of an SCA, a transferor should recognize a receivable measured based on the operator’s estimated carrying value of the underlying PPP asset as of the expected date of the transfer in ownership. In addition, a transferor should recognize a receivable for installment payments, if any, to be received from the operator in relation to the PPP.

Measurement of a receivable for installment payments should be at the present value of the payments expected to be received during the PPP term. A transferor also should recognize a deferred inflow of resources for the consideration received or to be received by the transferor as part of the PPP. Revenue should be recognized by a transferor in a systematic and rational manner over the PPP term.

T
his Statement requires a transferor to recognize a receivable for installment payments and a deferred inflow of resources to account for a PPP in financial statements prepared using the current financial resources measurement focus. Governmental fund revenue would be recognized in a systematic and rational manner over the PPP term.
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MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements (Continued)
T
his Statement also provides specific guidance in financial statements prepared using the economic resources measurement focus for a government that is an operator in a PPP that either (1) meets the definition of an SCA or (2) is not within the scope of Statement 87, as amended (as clarified in this Statement). An operator should report an intangible right -to-use asset related to an underlying PPP asset that either is owned by the transferor or is the underlying asset of an SCA. Measurement of the right -to- use asset should be the amount of consideration to be provided to the transferor, plus any payments made to the transferor at or before the commencement of the PPP term, and certain direct costs. For an underlying PPP asset that is not owned by the transferor and is not the underlying asset of an SCA, an operator should recognize a liability measured based on the estimated carrying value of the underlying PPP asset as of the expected date of the transfer in ownership. In addition, an operator should recognize a liability for installment payments, if any, to be made to the transferor in relation to the PPP. Measurement of a liability for installment payments should be at the present value of t he payments expected to be made during the PPP term. An operator also should recognize a deferred outflow of resources for the consideration provided or to be provided to the transferor as part of the PPP. Expense should be recognized by an operator in a systematic and rational manner over the PPP term.

T
his Statement also requires a government to account for PPP and non-PPP components of a PPP as separate contracts. If a PPP involves multiple underlying assets, a transferor and an operator in certain cases should account for each underlying PPP asset as a separate PPP. To allocate the contract price to different components, a transferor and an operator should use contract prices for individual components as long as they do not appear to be unreasonable based on professional judgment or use professional judgment to determine their best estimate if there are no stated prices or if stated prices appear to be unreasonable. If determining the best estimate is not practicable, multiple components in a PPP should be accounted for as a single PPP.

Th
is Statement also requires an amendment to a PPP to be considered a PPP modification, unless the operator’s right to use the underlying PPP asset decreases, in which case it should be considered a partial or full PPP te rmination. A PPP termination should be accounted for by a transferor by reducing, as applicable, any receivable for installment payments or any receivable related to the transfer of ownership of the underlying PPP asset and by reducing the related deferred inflow of resources. An operator should account for a termination by reducing the carrying value of the right -to-use asset and, as applicable, any liability for installment payments or liability to transfer ownership of the underlying PPP asset. A PPP modification that does not qualify as a separate PPP should be accounted for by remeasuring PPP assets and liabilities.

AP
As – An APA that is related to designing, constructing, and financing a nonfinancial asset in which ownership of the asset transfers by the end of the contract should be accounted for by a government as a financed purchase of the underlying nonfinancial asset. This Statement requires a government that engaged in an APA that contains multiple components to recognize each component as a sepa rate arrangement. An APA that is related to operating or maintaining a nonfinancial asset should be reported by a government as an outflow of resources in the period to which payments relate. 11 256 of 299

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 96 – Subscription-Based Information Technology Arrangements T
his Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) d
efines a SBITA; (2) establishes that a SBITA results in a right-to -use subscription asset —an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.

A S
BITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.

T
he subscription term includes the period during which a government has a noncancelable right to use the underlying IT assets. The subscription term also includes periods covered by an option to extend (if it is reasonably certain that the government or SB ITA vendor will exercise that option) or to terminate (if it is reasonably certain that the government or SBITA vendor will not exercise that option).

U
nder this Statement, a government generally should recognize a right -to-use subscription asset —an intangible asset —and a corresponding subscription liability. A government should recognize the subscription liability at the commencement of the subscription term, —which is when the subscription asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to be made during the subscription term. Future subscription payments should be discounted using the interest rate the SBITA vendor charges the government, which may be implicit, or the government’s incremental borrowing rate if the interest rate is not readily determinable. A government should recognize amortization of the discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent financial reporting periods.

T
he subscription asset should be initially measured as the sum of (1) the initial subscription liability amount, (2) payments made to the SBITA vendor before commencement of the subscription term, and (3) capitalizable implementation costs, less any incentives received from the SBITA vendor at or before the commencement of the subscription term. A government should recognize amortization of the subscription asset as an outflow of resources over the subscription term.

A
ctivities associated with a SBITA, other than making subscription payments, should be grouped into the following three stages, and their costs should be accounted for accordingly:
• Pr
eliminary Project Stage, including activities such as evaluating alternatives, determining needed technology, and selecting a SBITA vendor. Outlays in this stage should be expensed as incurred. • Initial Implementation Stage, including all ancillary charges necessary to place the subscription asset into service. Outlays in this stage generally should be capitalized as an addition to th e
su
bscription asset.
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MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 96 – Subscription-Based Information Technology Arrangements (Continued) • Op
eration and Additional Implementation Stage, including activities such as subsequent implementation activities, maintenance, and other activities for a government’s ongoing operations related to a SBITA. Outlays in this stage should be expensed as incurred unless they meet specific capitalization criteria.

I
n classifying certain outlays into the appropriate stage, the nature of the activity should be the determining factor. Training costs should be expensed as incurred, regardless of the stage in which they are incurred.

I
f a SBITA contract contains multiple components, a government should account for each component as a separate SBITA or nonsubscription component and allocate the contract price to the different components. If it is not practicable to determine a best estimate for price allocation for some or all components in the contract, a government should account for those components as a single SBITA.

T
his Statement provides an exception for short -term SBITAs. Short-term SBITAs have a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Subscription payments for short -term SBITAs should be recognized as outflows of resources.

Th
is Statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, su ch as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information.

H
ow the Changes in this Statement will Improve Financial Reporting T
he requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice.

Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs. 13 258 of 299
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is Page Left Intentionally Blank
259 of 299
RE

QUIRED COMMUNICATIONS
To
the City Council of
the City of San Bruno, California
W
e have audited the basic financial statements of the City of San Bruno for the year ended June 30, 2021.

Professional standards require that we communicate to you the following information related to our audit under generally accepted auditing standards and Government Auditing Standards.

Significant Audit Matters
A
ccounting Policies
M
anagement is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year, except as follows:

GASB 84 – Fiduciary Activities
T
he objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.

T
his Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities.

A
n activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. An exception t o that requirement is provided for a business -type activity that normally expects to hold custodial assets for three months or less.

T
his Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private -purpose trust funds, and (4) custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria.

A fi
duciary component unit, when reported in the fiduciary fund financial statements of a primary government, should combine its information with its component units that are fiduciary component units and aggregate that combined information with the primary government’s fiduciary funds.
15 260 of 299
T
his Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. Events that compel a government to di sburse fiduciary resources occur when a demand for the resources has been made or when no further action, approval, or condition is required to be taken or met by the beneficiary to release the assets.

T
he pronouncement became effective and is disclosed in Note 1 to the financial statements.

GASB 90 – Majority Equity Interests (an amendment of GASB Statements No. 14 and No. 61)
T
he primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment . A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special -purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value.

Fo
r all other holdings of a majority equity interest in a legally separate organization, a government should report the lega lly separate organization as a component unit, and the government or fund that holds the equity interest should report an asset related to the majority equity interest using the equity method. This Statement establishes that ownership of a majority equity interest in a legally separate organization results in the government being financially accountable for the legally separate organization and, therefore, the government should report that organization as a component unit.

T
his Statement also requires that a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. Transactions presented in flows statements of the component unit in that circumstance should include only transactions that occurred subsequent to the acquisition.

T
he pronouncement became effective, but did not have a material effect on the financial statements.

GASB 98 – The Annual Comprehensive Financial Report
Th
is Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive ann ual financial report and its acronym in generally accepted accounting principles for state and local governments.
16 261 of 299
T
his Statement was developed in response to concerns raised by stakeholders that the common pronunciation of the acronym for comprehensive annual financial report sounds like a profoundly objectionable racial slur. This Statement’s introduction of the new term is founded on a commitment to promoting inclusiveness.

T
he pronouncement is not effective until June 30, 2022, but management has early implemented it. This statement did not have a material effect on the financial statements.

U
nusual Transactions, Controversial or Emerging Areas
W
e noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

A
ccounting Estimates
Acco
unting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Es
timated Net Pension Liabilities and Pension -Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of resources are disclosed in Note 8 to the financial statements and are based on actuarial studies determined by a consultant, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

E
stimated Fair Value of Investments: As of June 30, 2021 , the City held approximately $140.3 million of cash and investments as measured by fair value as disclosed in Note 2 to the financial statements. Fair value is essentially market pricing in effect as of June 30, 2021 . These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2021.

E
stimate of Depreciation: Management’s estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 1 to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

E
stimate of Compensated Absences: Accrued compensated absences which are comprised of accrued vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1 to the financial statements. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.
17 262 of 299
Es
timated Claims Liabilities: Management’s estimate of the claims liabilities payable is disclosed in Note 7 to the financial statements and is based on actuarial studies determined by a consultant, which are based on the claims experience of the City. We evaluated the key factors and assumptions used to develop the es timate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Di
sclosures
T
he financial statement disclosures are neutral, consistent, and clear.

D
ifficulties Encountered in Performing the Audit
W
e encountered no significant difficulties in dealing with management in performing and completing our audit.

C
orrected and Uncorrected Misstatements
P
rofessional standards require us to accumulate all kn own and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

P
rofessional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council.

Di
sagreements with Management
F
or purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

M
anagement Representations
W
e have requested certain representations from management that are included in a management representation letter dated December 21, 2021.

M
anagement Consultations with Other Independent Accountants I
n some cases, management may decide to consult with other accountan ts about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. 18 263 of 299
O
ther Audit Findings or Issues
W
e generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Information Accompanying the Financial Statements W
e applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information.

W
e were engaged to report on the supplementary information which accompany the financial statements, but are not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

W
e were not engaged to report on the Introductory and Statistical Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
****
**
T
his information is intended solely for the use of City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties.

Ple
asant Hill, California
December 21, 2021
19 264 of 299
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is Page Left Intentionally Blank
265 of 299
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:January 11, 2022
TO:Honorable Mayor and Members of the City Council
FROM:Jovan Grogan, City Manager
PREPARED BY:Ann Mottola, Director
SUBJECT: Adopt Resolution Appropriating $72,333 from the General Fund to the Community Services Department Recreation Division to fund a Deputy Director and Unfreeze a Recreation Services Coordinator BACKGROUND:

Staff is requesting a mid-year budget adjustment for the Community Services Recreation Division to unfreeze a vacant Recreation Services Coordinator position and add a new Community Services Deputy Director. Both positions are necessary for successful day-to-day operation of the Department, and essential to the preparation, implementation, and ongoing operation of the new Recreation and Aquatic Center. The proposed adjustment includes 4 months of funding in FY 2021-22, anticipating an immediate recruitment and start date in March 2022.

DISCUSSION:

The Recreation and Seniors Services Division currently consists of 3 Coordinators, 1 Supervisor, and 1 Superintendent. One of the coordinators is on extended leave due to an injury. The loss of this team member has revealed an operational vulnerability within the Division as there is not adequate staffing to maintain the programs it offers. With programs returning to normal, the Recreation and Senior Services Division is struggling to manage day-to-day program operations.

In FY 2020-21, the Community Services Department had two vacant positions that were frozen in response to the impact of revenue loss due to COVID. The positions are a Recreation Services Supervisor and a Recreation Services Coordinator. Staff is requesting that the Recreation Services Coordinator position is unfrozen to allow distribution of duties to manage the Division workload. To offset the cost of the Recreation Services Coordinator, the Accounting and Customer Service Representative will be left vacant until the full staffing model for the Recreation and Aquatics Facility is developed.

There is also a need for a Deputy Director position given the current staffing deficiencies within the Recreation and Senior Services Division, and in the context of the Department as a whole.

Time is of the essence to onboard additional senior management experience in the Community Services Department to focus on the complex work required to develop the foundational documents, processes, policies, and networks that are essential to the success of the Recreation and Aquatic Center.

Attachment 2 is a memo sent to Council on June 16, 2021, re: Justification for Community Services Deputy Director Position. The ability to achieve all the objectives specified in that document in preparation of the Recreation and Aquatic Center opening in Fall 2023 requires an 266 of 299
Honorable Mayor and Members of the City Council
January 11, 2022

Page 2 of 3 ends

San Bruno City CouncilJanuary 11, 2022

San Bruno City Council
January 11, 2022