Agenda, first session — San Bruno City Council, May 23, 2023 (part 1 of 2)

"The City With a Heart"
Rico E. Medina, Mayor
Tom Hamilton, Vice Mayor
Sandy Alvarez, Councilmember, District 1
Marty Medina, Councilmember, District 4
Michael Salazar, Councilmember
AGENDA
SAN BRUNO CITY COUNCIL REGULAR MEETING
May 23, 2023
7:00 PM
City Councilmembers and members of the public may attend in person at the San Bruno Senior Center, or by teleconference, via Zoom or telephone.

IN PERSON* MEETING LOCATION
San Bruno Senior Center
1555 Crystal Springs Road
San Bruno, CA 94066
*Please turn off all electronic devices before the start of the meeting to prevent disruptions*
Zoom Link
https://sanbrunocagov.zoom.us/j/86918688395?
pwd=OXBxSm9nU3FidlIvdVpQbXBaVU56QT09
Phone Line: 16465588656
Webinar ID: 869 1868 8395
Webinar Password: 852287
PUBLIC COMMENT: In person attendees who want to provide public comment, will be asked to fill out a speaker card and turn it into the City Clerk. Virtual attendees can comment by using the “Raise Hand” feature in Zoom to request to speak. For dialin comments press *9 to “Raise Hand” and *6 to unmute. Public comment may also be emailed to [email protected] . Comments received via email will not be read aloud during the meeting.

ACCESSIBILITY: In compliance with the Americans with Disabilities Act, individuals requiring special accommodations or modifications to participate in this meeting should contact the City Clerk’s Office 48 hours prior to the meeting at (650) 6167061 or [email protected] .
*Any disclosable public writings related to an open session item on a regular meeting agenda and distributed by the City to at least a majority of the City Council less than 72 hours prior to that meeting are available for public inspection at the City Clerk's Office at City Hall located at 567 El Camino Real, San Bruno, California during normal business hours. In addition, the City may also post such documents on the City’s Website at sanbruno.ca.gov/AgendaCenter .

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
Public comment will be requested after each topic in this section a. On June 1, 2023 at 8:30 A.M., the City of San Bruno Will Raise the Progress Pride Flag in Celebration of Pride Month. Members of the Public Are Welcome to Join to Observe as the Ceremonial Flag Is Raised.
b. San Bruno Lions Club Will Hold the 81st Annual Posy Parade on Sunday June 4, 2023! The Floral Parade for Children Will Start at 11:00 AM on Linden Avenue Near San Bruno City Hall and Will Travel South to Crystal Springs Road and up Crystal Springs Road to San Bruno City Park. If You’re in the Area, Wave as the Parade Moves Along and Show Your Support of the Community’s Little Ones!
c. 82nd Annual Memorial Day Observance is Scheduled for May 29, 2023 at 11:00 A.M. at Golden Gate National Cemetery, 1300 Sneath Lane (Veterans Way) d. Issue Proclamation Declaring May 21–27, 2023 as National Public Works Week e. Presentation Update on Code Enforcement Activities

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. 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 the Draft Special Meeting Minutes for the Meetings of May 9, 2023 and May 17, 2023 and Draft Regular Meeting Minutes for the Meeting of May 9, 2023 b. Approve Accounts Payable for May 8, 2023 and May 15, 2023 c. Accept Payroll for May 7, 2023
d. Approve Reconciliation of General Ledger to Bank Report Dated March 31, 2023 e. Consider Adoption of a Resolution Approving Chief Financial Officer Job Title/Job Classification and Proposed Annual Pay Schedule of $187,365 $234,264 f. Consider Resolutions Appropriating $42,498 in REAP Grant Funding for the 20232031 Housing Element Update, and Authorizing the City Manager to Execute Contract Amendments With David J. Powers & Associates, Inc. for $8,711.76 and Good City Co. for $33,786.24 to Complete the 2023 – 2031 Housing Element Update Project
g. Consider Adoption of a Resolution:
• Rescinding the Water Shortage Emergency Declaration Adopted on June 7, 2022 • Deactivating Level 2 and Activating Level 1 of the San Bruno Water Shortage Contingency Plan; and
• Directing Staff to Continue Implementing Water Use Restrictions Consistent With the Requirements of Title 23, Sections 995 and 996 of the California Code of Regulations for the Duration of the Emergency Regulation
h. Consider Adoption of a Resolution Approving Publicly Available Pay Schedule Pursuant to the Public Employees' Retirement Law (PERL), Public Employees' Pension Reform Act of 2013 (PEPRA), and Title 2 of the California Code of Regulations (CCR) i. Consider Adoption of a Resolution Authorizing the City Manager to Execute a Memorandum of Understanding and License Agreement With the City and County of San Francisco for the Huntington Avenue Bicycle and Pedestrian Improvement Project and Finding the Action is Exempt From CEQA
j. Consider Adoption of a Resolution:
• Finding Emergency Repairs Are Needed and Authorizing the City Manager to Execute a Contract With Bothman Construction in the Amount of $293,000 to Complete Diamond 3 Repairs at City Park;
• Appropriating Funds in the Amount of $293,000 From the General Fund Capital Reserve Fund; and,
• Approving a Construction Contingency of $58,600
• Approving a Total Project Budget in the Amount Not to Exceed $351,600 • Determining the Project is Exempt Under the California Environmental Quality Act

7. CONDUCT OF BUSINESS
Public comment will be requested after each topic in this section a. Consider Adoption of a Resolution Accepting the City’s Annual Comprehensive Financial Report, the Measure A and W Fund Reports, and the Single Audit Report of Federal Awards for the Fiscal Year Ended June 30, 2022
b. Receive Annual Military Equipment Use Report, Review the Military Equipment Use Ordinance, and Adopt a Resolution Renewing the Military Equipment Use Ordinance Number 20221910

8. COUNCIL COMMITTEE REPORT OUT
Public comment will be requested after each topic in this section

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

10. ADJOURNMENT – The Next Regular City Council Meeting Will be Held on June 13, 2023 at 7:00 P.M.

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1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COUNCIL COMMITTEE REPORT OUT
Public comment will be requested after each topic in this section

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

10. ADJOURNMENT – The Next Regular City Council Meeting Will be Held on June 13, 2023 at 7:00 P.M.

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1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COUNCIL COMMITTEE REPORT OUT
Public comment will be requested after each topic in this section

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

10. ADJOURNMENT – The Next Regular City Council Meeting Will be Held on June 13, 2023 at 7:00 P.M.

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"The City With a Heart"
Rico E. Medina, Mayor
Tom Hamilton, Vice Mayor
Sandy Alvarez, Councilmember,
District 1
Marty Medina, Councilmember,
District 4
Michael Salazar,
Councilmember

MINUTES

SAN BRUNO CITY COUNCIL SPECIAL MEETING
May 9, 2023
5:30 PM

1. CALL TO ORDER
The meeting was called to order at 5:30 p.m.

2. ROLL CALL
Councilmembers Alvarez, Salazar, Vice Mayor Hamilton, and Mayor R. Medina were all present, and Councilmember M. Medina arrived at 6:32 p.m.

3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No members of the public wished to speak under Public Comment.

4. CLOSED SESSION
a. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: California Department of Tax and Fee Administration Notices of Local Tax Adjustment
No members of the public wished to speak on this item.

There was no reportable action taken.
b. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Pursuant to Government Code Section 54956.8
Property: APN 020-143-080
Agency Negotiator: City Manager
Negotiating Parties: City of San Bruno and the Cota Gail Trust No members of the public wished to speak on this item.

There was no reportable action taken.
c. Conference with labor negotiations
Agency designated representatives: City Manager
Employee Organization: San Bruno Management Employees Association No members of the public wished to speak on this item.

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There was no reportable action taken.

10. ADJOURNMENT
This meeting adjourned at 6:52 p.m. The next Regular City Council Meeting will be on Tuesday, May 9, 2023 at 7:00 p.m.

These City Council meeting minutes were prepared by Lupita Huerta, City Clerk, and presented to the City Council for approval at the regular meeting of May 23, 2023.

Lupita Huerta
City Clerk
Rico E. Medina
Mayor

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"The City With a Heart"
Rico E. Medina, Mayor
Tom Hamilton, Vice Mayor
Sandy Alvarez, Councilmember, District 1
Marty Medina, Councilmember, District 4
Michael Salazar, Councilmember

MINUTES

SAN BRUNO CITY COUNCIL SPECIAL MEETING
May 17, 2023
8:15 PM

1. CALL TO ORDER
The meeting was called to order at 8:15 p.m.

2. ROLL CALL
Councilmembers Alvarez, M. Medina, Salazar, Vice Mayor Hamilton, and Mayor R. Medina were all present.

3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No members of the public wished to speak under Public Comment.

4. CLOSED SESSION
a. PUBLIC EMPLOYEE APPOINTMENT PURSUANT TO GOVERNMENT
CODE SECTION 54957
Title: City Manager
No members of the public wished to speak on this item.

There was no reportable action taken.

10. ADJOURNMENT
This meeting adjourned at 10:42 p.m. The next Regular City Council Meeting will be on Tuesday, May 23, 2023 at 7:00 p.m.

These City Council meeting minutes were prepared by Lupita Huerta, City Clerk, and presented to the City Council for approval at the regular meeting of May 23, 2023.

Lupita Huerta
City Clerk
Rico E. Medina
Mayor

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"The City With a Heart"
Rico E. Medina, Mayor
Tom Hamilton, Vice Mayor
Sandy Alvarez, Councilmember, District 1
Marty Medina, Councilmember, District 4
Michael Salazar, Councilmember

MINUTES

SAN BRUNO CITY COUNCIL REGULAR MEETING
May 9, 2023
7:00 PM

1. CALL TO ORDER
The meeting was called to order at 7:00 p.m.

2. ROLL CALL
Councilmembers Alvarez, M. Medina, Salazar, Vice Mayor Hamilton and Mayor R.

Medina were all present.

3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No members of the public wished to speak under Public Comment.

4. ANNOUNCEMENTS/PRESENTATIONS
a. Receive Update From Recology San Bruno on the Recent Community Clean Up (Drop Off) Event Held on Saturday, April 29, 2023
Recology General Manager Kirsten Pinochi presented the item to the City Council. b. Issue Proclamation to Declare May 2023 as Asian American, Native Hawaiian and Pacific Islander Heritage Month
c. Issue Proclamation to Declare May 2023 as Jewish American Heritage Month d. Issue Proclamation to Declare May 2023 as Wildfire Awareness Month Recipient Fire Chief Ari Delay thanked council for its commitment in ensuring safety and security of residents and visitors of City of San Bruno. Proclamation highlights National Wildfire Awareness Month and designed to remind residents of California, a fire prone community that we are living in a high fire area.

Mayor R. Medina announced flags lowered at municipal facilities as a mark of respect for victims of the tragedy in Allen, TX.

No members of the public wished to speak under Announcements/Presentations.

5. CONSENT CALENDAR
a. Approve the Draft Special Meeting Minutes of June 14, 2022, November 1, 2022, November 8, 2022, November 15, 2022, November 19, 2022, November 22, 2022, November 30, 2022 and April 11, 2023 and the Draft Regular Meeting Minutes for

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the Meetings of November 8, 2022 and April 11, 2023
b. Approve Accounts Payable for April 17, 2023, April 24, 2023, and May 1, 2023 c. Accept Payroll for April 23, 2023
d. Approve Investment Report Dated March 31, 2023
e. Consider Adoption of a Resolution Amending the San Bruno City Council Policies and Procedures Regarding Closed Sessions
f. Consider Adopting a Resolution:
• Approving the Design of the 2022-23 Slurry Seal Project; • Authorizing the City Manager to Execute a Construction Contract with American Asphalt Repair & Resurfacing Company, Inc. for the 2022-23 Slurry Seal Project in an Amount Not to Exceed $909,305.41;
• Approving a Material Testing Agreement with Smith-Emery of San Francisco, Inc. in an amount not to exceed $35,000.00;
• Approving a Construction Inspection Services Agreement with Consor PMCM, Inc. in an amount not to exceed $75,000.00;
• Approving a Construction Contingency of $136,395.81; and • Determining the Project is Exempt Under the California Environmental Quality Act g. Consider Adoption of Resolution:

1. Approving the Special Event Permit With the Temporary Road Closure of Various Streets in Conjunction With the Annual Posy Parade Subject to Conditions of Approval

2. Approving the Waiver of City Fees/Costs for the Development and Implementation of a Traffic Control and Event Safety Plan and Incident Action Plan for the Event in the Total Amount of up to $96,938.23

3. Appropriating $96,938.23 From the General Fund Reserve in the Fiscal Year 2022-23 Operating Budget
h. Consider Adoption of Resolution Authorizing the Display of the LGBTQ+ Progress Pride Flag on a Designated City Facility Flagpole to Commemorate LGBTQ+ Pride Month During the Month of June 2023
i. Consider Adoption of a Resolution Accepting the City Council’s Fiscal Year 2023-24 Focus Areas and Strategic Initiatives as Prepared During the March 25, 2023 City Council Retreat
j. Update on the City’s response efforts to the late 2022 to 2023 winter storms and consider adopting a resolution terminating the local state of emergency declared by the City in response to the late 2022 to 2023 winter storms. k. Consider Adoption of a Resolution Authorizing the City Manager to Execute a Memorandum of Understanding With the County of San Mateo for the Multijurisdictional Safety Element Project in an Amount Not to Exceed $156,964 and Authorizing Payments Per Payment Option Three for the Preparation of the City of San Bruno General Plan Safety Element
No items were pulled by the City Council for a separate vote.

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Item f – Vice Mayor Hamilton stated was previously advised 2023 was going to be more of a year of planning and not so much for execution, did that change and projects will be hitting the ground?
Interim City Manager Alex D. McIntyre and Public Works Director Matt Lee answered the question.

Item g – Councilmember M. Medina disclosed he is a San Bruno Lion and Posey Parade is operating differently than in the past and important community is aware of changes, the cost and how fun it will be.

Interim City Manager introduced the item and Assistant to the City Manager Jennifer Dianos presented the item to the City Council.

Item h – Mayor R. Medina would like a raising of the flag ceremony in front of City Hall on the morning of June 1st. Specifics will be announced at the next council meeting.

Item I – Councilmember M. Medina suggested a Study Session to go through the strategic initiatives and prioritize them.

Member of the Public Joe Yanki - spoke about the last slurry seal on Elm Avenue.

M/S Salazar/Hamilton to approve the Consent Calendar. The motion passed unanimously.

6. CONDUCT OF BUSINESS
a. Consider Adoption of an Ordinance of the San Bruno City Council Amending Section

2.04.110(b) of the San Bruno Municipal Code Establishing Procedures for Selection of Vice Mayor
City Clerk Lupita Huerta presented the item to the City Council.

No members of the public wished to speak under this item.

City Attorney Trisha Ortiz answered questions.

M/S Salazar/Alvarez to request staff to come back with a modified ordinance reflecting the mayor’s desire to do a luck of the draw process for selecting the vice mayor. The motion passed unanimously.
b. Review and Provide Direction on Crestmoor Multi-Use Fields Master Plan Design Alternatives
Vice Mayor Hamilton recused himself due to location of his home causing a conflict of interest.

Interim Community Services Director Damian Sandholm introduced the item.

Consultant Brian Fletcher presented the item to the City Council.

Member of the Public Joe Meyer – spoke about concerns regarding plan; bio retention area on west of it; parking and fire mitigation concerns.

Member of the Public Rick Fern – spoke about the treatment center well for the

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stormwater and field size.

Member of the Public David Nigel – spoke about excitement of project.

Community & Economic Development Director Peter Gilli, Consultant Fletcher, Assistant City Manager Darcy Smith and Interim City Manager McIntyre answered questions.

No action taken, item will be brought back to the City Council at a future meeting.

7. COUNCIL COMMITTEE REPORT OUT
Mayor R. Medina
Airport Land Use: Attended meeting all had to do with San Carlos Airport developments around the airport, all passed but was concern over child care participating in those developments and the safety element of the planes. The Council of Cities had an event at the San Carlos Airport. Was ironic to have a meeting on that subject and then get a tour of the hangar in the facility which was impressive.

SamTrans has an opening for a public member within San Mateo County. Gets appointed by the board of directors and serves to review. Meet in-person in San Carlos at 2:00 p.m. on Wednesdays. Is a great opportunity. Can go on the SamTrans website.

Caltrain JPB: Is chair on the TOPS Ad Hoc Committee. Brought forward to award a contract for a preliminary engineering service for the South Linden and Scott Street Separation project. The ad hoc committee recommended and approved it.

Vice Mayor Hamilton
Attended first Peninsula Clean Energy Board of Directors meeting on April 27th and unanimously approved many administrative items. Will report on most interesting items.

Approved a $142 million contract for 180 megawatt hours of electric storage capacity at a storage facility near Barstow. This storage capacity is a big step toward PCE renewable energy at night. A lot of that comes from solar so having the storage capacity is gong to get them to that goal.

Also approved amended language in the PCE’s board policies to address diversity equity accessible and inclusion. Approved language for several existing policies ad gave staff direction to meet with labor and environmental justice groups to gather input on extending similar language to the rest of the policies and bring those back PCE executive committees and the full board within three months. Lastly, received a report on the CPUC’s sunsetting of NFS to install solar by allowing them to sell back excess generated energy back to the grid at rates to help them recoup the installation costs of solar. The NEM 3.0 program rolled out in April reduces these incentives to allow the incentive program to remain sustainable and under NEM 2.0 the average homeowner would recoup their solar costs in 4-5 years. Under the new rules this average extends to 8-9 years.

8. COMMENTS FROM COUNCIL MEMBERS
Mayor R. Medina
Took a group photo with some electeds and commissions in Belmont for Mental Health

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Awareness.

Hyundai had their grand opening at the mall. They are meeting and exceeding expectations.

On Monday, reached out to Mayor G from the City of Redwood City on the news of the five that was shot in Redwood City and offered our support and thoughts.

9. ADJOURNMENT
This meeting adjourned at 8:38 p.m. The next Regular City Council Meeting will be on Tuesday, May 23, 2023 at 7:00 p.m.

These City Council meeting minutes were prepared by Lupita Huerta, City Clerk, and presented to the City Council for approval at the regular meeting of May 23, 2023.

Lupita Huerta
City Clerk
Rico E. Medina
Mayor

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO

DATE: May 23, 2023

TO: Honorable Mayor and Members of the City Council

FROM: Alex McIntyre, Interim City Manager

PREPARED BY: Anh Tran, Management Analyst II

SUBJECT: Payroll Acceptance

City Council acceptance of the City payroll distributed May 12, 2023 is recommended.

The Labor Summary report reflecting the total payroll amount of $1,916,387.68 for bi- weekly pay period ending May 7, 2023 by fund is shown below:

Fund Amount

Fund: 001 - GENERAL FUND 1,398,080.55
Fund: 006 - AMERICAN RESCUE PLAN ACT 72,558.05
Fund: 121 - FEDERAL/STATE GRANTS 1,252.05
Fund: 122 - SOLID WASTE/RECYCLE 254.20
Fund: 132 - AGENCY ON AGING 899.95
Fund: 137 - DEVELOPER PROJECT CONTRIBUTIONS 7,507.56
Fund: 201 - PARKS AND FACILITIES CAPITAL 551.70
Fund: 203 - STREET IMPROVE. PROJECTS 10,987.45
Fund: 207 - TECHNOLOGY CAPITAL 3,740.62
Fund: 611 - WATER FUND 114,025.47
Fund: 621 - STORMWATER FUND 30,825.40
Fund: 631 - WASTEWATER FUND 104,487.44
Fund: 641 - CITYNET SERVICES FUND 88,245.76
Fund: 701 - CENTRAL GARAGE 16,159.28
Fund: 702 - FACILITY MAINT.FUND 43,949.76
Fund: 707 - TECHNOLOGY DEVELOPMENT 17,604.57
Fund: 711 - SELF INSURANCE 5,257.87
Total: 1,916,387.68

_________________________________
Bobby Magee, Interim Finance Director Date DocuSign Envelope ID: 48925E53-7905-4C3D-8902-576837168C29 5/15/2023

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:May 23, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Cora Dino, Chief People Officer
SUBJECT: Consider Adoption of a Resolution Approving Chief Financial Officer Job Title/Job Classification and Proposed Annual Pay Schedule of $187,365 - $234,264
BACKGROUND: The City’s Finance Director position is currently filled with an Interim Finance Director since August 2022 when the former Finance Director left. Over the past thirteen years, the average tenure of a full-time appointed Finance Director has been approximately twenty-two months. In today’s labor market, recruiting and retaining a qualified and experienced finance director with municipal government experience is challenging.

The City in partnership with an executive search firm, will begin its recruitment efforts for our next Chief Financial Officer and having a fresh and modernized job title with a salary adjustment along with competitive compensation and benefits package will aid in increasing the candidate pool.

DISCUSSION: In an effort to modernize the current job title and to attract qualified and experienced senior level finance director candidates with municipal government experience, staff recommends a job title change from Finance Director to Chief Financial Officer to oversee the City’s finance department.

In determining a competitive salary that would attract and retain talent, staff surveyed the following ten cities in the County of San Mateo: Foster City, Burlingame, San Carlos, Menlo Park, Belmont, Millbrae, Daly City, Redwood City, San Mateo, and South San Francisco. The median salary of these cities including San Bruno is $234,264 per year. This would adjust the current top step by 2.7%. As for the minimum salary, staff took the median of the minimum salaries of these cities as San Bruno’s minimum salary.

Staff reviewed the pay ranges of other department head/ director positions in the City of San Bruno and with this proposed salary adjustment, the proposed Chief Financial Officer position would fall in the middle of public safety department heads and administrative department head job classifications.

The City Manager and Chief People Officer met with the San Bruno Management Employees Association (SBMEA) to discuss the City’s proposal. SBMEA indicated support for any effort to increase the compensation of its members to more competitive levels, and expressed a desire to see this same consideration for the other department head/director positions that are already

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Honorable Mayor and Members of the City Council
May 23, 2023

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staffed by dedicated leaders in the organization, whom we wish to retain. SBMEA cares deeply about the success of the City and its executive management team and has strong desires to reduce the staff turnover rate which can have long lasting detrimental effects to City operations.

FISCAL IMPACT: There is no fiscal impact.

ENVIRONMENTAL IMPACT: There is no environmental impact.

RECOMMENDATION: Adoption of a Resolution Approving Chief Financial Officer Job Title and Proposed Annual Pay Schedule of $187,365 - $234,264.

ALTERNATIVES: Do not adopt a Resolution Approving the Chief Financial Officer Job Title and Proposed Annual Pay Schedule of $187,365 - $234,264.

ATTACHMENTS:

1. Resolution with attached Job Classification

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RESOLUTION NO. 2023 –

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO

ADOPTING A RESOLUTION APPROVING THE CHIEF FINANCIAL OFFICER

JOB TITLE/CLASS SPECIFICATION AND PROPOSED ANNUAL PAY
SCHEDULE OF $187,365 - $234,264
WHEREAS, the City’s Finance Director role is currently filled with an Interim Finance Director; and
WHEREAS, over the last thirteen years, the average tenure of a full-time appointed Finance Director has been approximately twenty-two months; and, WHEREAS, the City will begin its executive search for its next department head in charge of the finance department and desires to modernize the current job title; and
WHEREAS, to recruit and retain qualified and experienced finance director candidates, staff proposes a salary adjustment that is competitive within the external market; and
WHEREAS, staff reviewed the pay schedules of finance director positions of nearby agencies that are comparable to San Bruno; and WHEREAS, staff reviewed the pay schedules of other department heads/directors in San Bruno for internal equity; and
NOW, THEREFORE, BE IT RESOLVED, that the San Bruno City Council hereby approves the Resolution Approving the Chief Financial Officer Job Title/ Class Specification and the Annual Pay Schedule of $187,365 - $234,264. --oOo—
I hereby certify the foregoing Resolution No. _____ was introduced and adopted by the San Bruno City Council, at a regular meeting on May 23, 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
________________________________
Lupita Huerta, City Clerk

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CITY OF SAN BRUNO

CITY MANAGER
567 El Camino Real, San Bruno, CA 94066-4299
Voice: (650) 616-7056 • Fax: (650) 742-6515
http://ci.sanbruno.ca.us
Position Description

CHIEF FINANCIAL OFFICER

GENERAL PURPOSE

Performs a variety of complex supervisory, professional, administrative and technical accounting and finance functions in maintaining the fiscal records and systems of the City; coordinates assigned activities with other City departments and outside agencies; provides highly responsible and complex administrative support to the City Manager's Office; and acts as a member of the City Manager's management team. This is a Fair Labor Standard Act (FLSA) exempt position.

SUPERVISION RECEIVED

Works under the broad policy guidance and direction of the City Manager and Assistant City Manager.

SUPERVISION EXERCISED

Exercises administrative direction over professional finance staff and other support staff, part-time, contracted or seasonal personnel either directly or through subordinate supervisors. This is a Fair Labor Standards Act (FSLA) exempt position.

ESSENTIAL DUTIES AND RESPONSIBILITIES (Illustrative Only)

Oversees and manages Finance functions including general ledger, accounting, payroll, business license and other tax and revenue collection, utility billing, purchasing and accounts payable, accounts receivable, treasury, and budget.

Serves as chief financial advisor to the City Manager.

Supervises the collection of taxes, fees, utilities, and other receipts in accordance with laws and regulations.

Establishes and maintains internal control procedures and assures that state and national standard accounting procedures are maintained.

Directs the Treasury function, including managing investment portfolio, planning, managing and ensuring availability of City funds, recommending investment policies, and preparing investment reports.

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Maintains financial records.

Prepares financial reports and oversees annual independent audit of City's financial transactions.

Assures that assigned areas of responsibility are performed within budget; performs cost control activities; monitors revenues and expenditures in assigned area to assure sound fiscal control; prepares budget documents; assures effective and efficient use of budgeted funds, personnel, materials, facilities, and time.

Oversees the posting and reconciliation of ledgers and accounts.

Directs the preparation of state and Federal reports, including tax reports.

Manages and supervises assigned operations to achieve goals within available resources; plans and organizes workloads and staff assignments; trains, motivates and evaluates assigned staff; reviews progress and directs changes as needed.

Provides leadership and direction in the development of short and long range plans; gathers, interprets, and prepares data for studies, reports and recommendations; coordinates department activities with other departments and agencies as needed.

Makes presentations to supervisors, boards, commissions, civic groups and the general public.

Communicates official plans, policies and procedures to staff and the general public.

Determines work procedures, prepares work schedules, and expedites workflow; studies and standardizes procedures to improve efficiency and effectiveness of operations.

Issues written and oral instructions; assigns duties and examines work for accuracy and conformance to policies and procedures.

Prepares a variety of studies, reports and related information for decision-making purposes and to assist department heads in operating their departments in a fiscally sound manner.

Develops financial studies and plans. Forecasts, estimates, and monitors the financial condition of the City to assure the fiscal well being of the City.

Oversees the central computerized financial and management information system of the City.

Trains and develops financial staff.

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Manage the investment and withdrawal of funds; manage the City’s investment portfolio; produce monthly investment report.

Research and prepare technical and administrative reports and studies; prepare written correspondence as necessary; provide periodic reports on department activities to City Council;

Perform other duties as assigned.

PERIPHERAL DUTIES

Develops finance related ordinances and resolutions.

Represents the City at various conferences, meetings, and joint powers associations.

Performs general management duties for the City Manager as assigned.

Performs cost-of-service studies for utility rate considerations.

Attend Council and other meetings as required.

Serves as a member of various committees, and may serve as liaison to City Council sub-committees and other groups as assigned.

MINIMUM QUALIFICATIONS

Education and Experience:

(A) Graduation from an accredited four-year college or university with a degree in accounting, finance, business or public administration, or a closely related field, and five (5) years of progressively responsible municipal finance work.

Necessary Knowledge, Skills and Abilities:

(A) Considerable knowledge of modem governmental accounting theory, principles,. and practices; considerable knowledge of internal control procedures and management information systems; considerable knowledge of office automation and computerized financial applications; considerable knowledge of public finance and fiscal planning; considerable knowledge of payroll and accounts payable functions; working knowledge of budgetary, accounting and reporting systems, GAAFR, GAAP and GASB; (B) Skill in operating the listed tools and equipment;
(C) Ability to prepare and analyze complex financial reports; ability to maintain efficient and effective financial systems and procedures; ability to effectively supervise staff; ability to establish and maintain effective working relationships with employees, city officials; ability to communicate effective orally and in writing.

SPECIAL REQUIREMENTS

Ability to obtain and maintain a valid California driver's license. Must be bondable.

TOOLS AND EQUIPMENT USED

Personal computer, including word processing and spreadsheet software; mainframe computer system; 10-key calculator; phone; copy machine; fax machine.

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PHYSICAL DEMANDS

The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

While performing the duties of this job, the employee is frequently required to sit and talk or hear, use hands to finger, handle, or feel objects, tools, or controls; and reach with hands and arms. The employee is occasionally required to walk.

The employee must occasionally lift and/or move up to 25 pounds. Specific vision abilities required by this job include close vision and the ability to adjust focus.

WORK ENVIRONMENT

The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

The noise level in the work environment is usually quiet.

SELECTION GUIDELINES

Formal application, rating of education and experience; oral interview and reference check; job related tests may be required.

The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position.

The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and requirements of the job change.

Approval: Approval
Supervisor Appointing Authority

Effective Date: May 23, 2023

Revision History:

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DATE:May 23, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Peter Gilli, Community and Economic Development Director SUBJECT: Consider Adoption of a Resolution
•Approving a Budget Amendment for the FY 2022-23 Operating Budget to Accept $42,498 From a State Regional Early Action Planning Grant for the Housing Element and Appropriating the Funds to the Housing Element Updated Project, and,
•Authorizing the City Manager to Execute an Agreement Amendment With David J. Powers & Associates, Inc. for $8,711.76 and an Agreement Amendment With Good City Company for $33,786.24 to Complete the 2023 – 2031 Housing Element Update Project BACKGROUND:

Under California law, each jurisdiction in the State is required to update its Housing Element every eight years. The City Council adopted the 2023-2031 Housing Element on January 24, 2023, and the City forwarded the document to the California Housing and Community Development Department (HCD) for their review on January 31, 2023.

Due to numerous changes in State law as it relates to housing, the Statewide trend is that at least three rounds of HCD review are needed to get certification. The City received HCD’s comments on March 29, 2023. Additional work is necessary to receive formal certification of the Housing Element from HCD. The City’s next submittal will be HCD’s third review.

Of the twenty-one jurisdictions in San Mateo County, one (Redwood City) has received HCD certification (4.8%). Of the 109 jurisdictions in the Association of Bay Area Governments (ABAG), 17 have received certification (15.6%).

Budget
The Housing Element Update Project is a multi-year project, with funding provided in the FY 2021- 22 and FY 2022-23 Operating Budget. Table 1 shows the approved budget for the project, with appropriations and expenditures:

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO

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2 Table 1: Existing Housing Element Update Project Budget Funding Source Appropriation Consultant/Lead Agency Approved Expenditure
General Fund $208,000 San Mateo County $54,500
General Plan
Maintenance Fund
$12,000 Good City Company
(Planning)
$75,000
LEAP Grant $80,000 David J. Powers (DJP)
(CEQA)
$138.850
Water Study $25,000
Misc Costs $6,650
Total $300,000 Total $300,000
DISCUSSION:

Three changes to the Housing Element budget are proposed to complete the work and receive HCD certification in a timely manner.

1.Budget Amendment, Acceptance, and Appropriation for REAP Grant. The City has been awarded a REAP (Regional Early Action Planning) grant for $42,498 from the State that can be used to support housing-related work, including work to offset costs of the environmental analysis for the Housing Element. City Council acceptance of this grant, and appropriation of these funds to the Housing Element Update Project is recommended.

2.DJP Agreement Amendment. DJP completed the necessary work for the environmental analysis (CEQA) but exceeded its agreement by $8,711.76. The overage was a result of the need for additional meetings and added preparation of drafts to complete the documents necessary for the City to submit the City Council adopted Housing Element by the State’s January 31, 2023 deadline. Staff recommends City Council authorization to amend DJP’s agreement to allow the additional $8,711.76 in work that was essential to completing the environmental review.

3.Good City Agreement Amendment. Additional work for staff and Good City is necessary to respond to HCD comments to have the Housing Element formally certified by the State. Staff recommends City Council authorization to amend Good City’s agreement to add $33,786.24 for this work.

These three actions will allow staff to continue to receive consultant support to respond to HCD comments to get formal certification, and the proposed Housing Element budget is reflected in Table 2:

Table 2: Proposed Housing Element Budget
Funding Source Appropriation Consultant/Lead Agency Proposed Expenditure
Total from Table 1 $300,000 Total from Table 1 $300,000 Authorize GCC Amendment $33,786.24State REAP Grant $42,498 Authorize DJP Amendment $8,711.76
Proposed Total $342,498 Proposed Total $342,498

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2 FISCAL IMPACT:

The proposed cost of the agreement amendments will be fully offset with the revenue from the REAP grant, therefore there is no fiscal impact to this item.

ENVIRONMENTAL IMPACT:

The Resolution approving a consulting service agreement for preparation of Housing Element environmental review is not considered a “Project” by the California Environmental Quality Act (CEQA) and therefore no further environmental analysis is required.

RECOMMENDATION:

Adopt a Resolution: Approving a Budget Amendment for the FY 2022-23 Operating Budget to Accept $42,498 from a State Regional Early Action Planning Grant for the Housing Element and Appropriating the Funds to the Housing Element Updated Project, and Authorizing the City Manager to Execute an Agreement Amendment with David J. Powers & Associates, Inc. for $8,711.76 and an Agreement Amendment with Good City Company for $33,786.24 to Complete the 2023 – 2031 Housing Element Update Project.

ALTERNATIVES:

1. The City Council could choose not to accept the grant, and direct staff to return with an appropriation of General Fund or General Plan Maintenance Fund dollars to fund the agreement amendments.

2. The City Council could choose not to authorize the agreement amendments, which would require staff to complete the necessary work to respond to HCD comments, which would significantly delay HCD’s certification of the Housing Element.

ATTACHMENTS:

1. Resolution

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RESOLUTION NO. 2023-____

RESOLUTION ACCEPTING AND APPROPRIATING THE REAP GRANT AWARD FUNDING OF $42,498 TO THE 2023-2031 HOUSING ELEMENT UPDATE AND AUTHORIZING THE

CITY MANAGER TO EXECUTE AMENDMENTS TO THE CURRENT AGREEMENTS FOR CONSULTANT SERVICES WITH DAVID J. POWERS, INC., IN AN AMOUNT NOT TO EXCEED $147,561.76, FOR SERVICES RELATED TO THE ENVIRONMENTAL ANALYSIS

OF THE HOUSING ELEMENT, AND WITH GOOD CITY COMPANY, IN AN AMOUNT NOT TO EXCEED $108,786.24, TO CONTINUE WORK ON THE HOUSING ELEMENT UPDATE

PROJECT
WHEREAS, the Association of Bay Area Governments (ABAG) awarded the City of San Bruno a non-competitive Regional Early Action Planning (REAP) grant award of $42,498 to fund Housing Element activities; and
WHEREAS, the City adopted its 2023-2031 Housing Element update on January 24, 2023 and submitted it to the California Department of Housing and Community Department (HCD) for review on January 31, 2023; and
WHEREAS, HCD reviewed the City’s adopted 2023-2031 Housing Element update and on March 30, 2023 provided comments specifying that further revisions to the document were needed to receive HCD certification; and
WHEREAS, the City entered into an Agreement for Consultant Services with David J.

Powers, Inc (DJP) for $138,850 to complete a Mitigated Negative Declaration (MND) for the Housing Element update, and additional budget of $8,711.76 is required to complete the MND, for a revised total cost of $147,561.76;
WHEREAS, the City entered into an Agreement for Consultant Services with Good City Company for $75,000 to prepare the 2023-2031 Housing Element, and additional work estimated to cost $33,786.24 is necessary to achieve HCD certification, for a revised total cost of $108,786.24;
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of San Bruno hereby authorizes the acceptance and appropriation of the REAP Grant Award funding of $42,498 for the 2023-2031 Housing Element Update and authorizes the City Manager to execute amendments to current agreements for Consultant Services with David J. Powers, in an amount not to exceed $147,561.76, for services related to the environmental analysis of the Housing Element, and with Good City Company, in an amount not to exceed $108,786.24, to continue work on the Housing Element update project.

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2 1
7 4
5 Dated: May 23, 2023
-o0o-
I, Lupita Huerta, City Clerk, do hereby certify that the foregoing Ordinance was duly and regularly passed and adopted by the City Council of the City of San Bruno this 23 rd day of May 2023 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST:

Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:May 23, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Matthew Lee, P.E., Public Works Director
SUBJECT: Consider Adoption of a Resolution:
• Rescinding the Water Shortage Emergency Declaration Adopted on June 7, 2022
• Deactivating Level 2 and Activating Level 1 of the San Bruno Water Shortage Contingency Plan; and
• Directing Staff to Continue Implementing Water Use Restrictions Consistent With the Requirements of Title 23, Sections 995 and 996 of the California Code of Regulations for the Duration of the Emergency Regulation
BACKGROUND:

On November 23, 2021, the San Francisco Public Utilities Commission declared a water shortage emergency calling for a 10% voluntary reduction from July 2019 to June 2020 levels. On March 28, 2022, Governor Newsom issued an Executive Order directing the California State Water Resources Control Board and local water agencies to enact shortage response actions consistent with local drought contingency plans. On May 24, 2022, the California State Water Resources Control Board adopted emergency regulations for each urban water supplier that has submitted a water shortage contingency plan to the Department of Water Resources to implement, at a minimum, the shortage response actions adopted under Section 10632 of the Water Code for a shortage level of up to 20% (Level 2) by June 10, 2022. On June 7, 2022, the City Council declared a water shortage emergency and adopted water use restrictions from Level 1 and Level 2 of the City Bruno’s Water Shortage Contingency Plan.

After three consecutive dry years, significant rain and snowfall from this past winter have effectively ended the drought in many areas of the state. On March 24, 2023, Governor Newsom rolled back many drought emergency provisions through Executive Order N-5-23 due to current water conditions and maintained other conservation measures that support regions still facing water supply challenges (see Attachment 1). This executive order:

•Ends the voluntary 15% water conservation target, while continuing to encourage Californians to make conservation a way of life.
•Ends the request that urban water suppliers implement Level 2 of their water shortage contingency plan.

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5 •Maintains the ban on wasteful water uses, such as watering ornamental grass on commercial properties.
•Preserves all current emergency orders focused on groundwater supply, where the effects of the multi-year drought continue to be devastating.
•Maintains orders focused on specific watersheds that have not benefited as much from recent rains, including the Klamath River and Colorado River basins, which both remain in drought.
•Retains a state of emergency for all 58 counties to allow for drought response and recovery efforts to continue.

The Governor’s Executive Order N-5-23 does not end the statewide declaration of a water shortage emergency. These executive actions were directed to the State Water Resources Control Board (SWRCB), where the Board adopted these emergency regulations and received approval from the Office of Administrative Law on June 10, 2022. Portions of the drought restrictions, such as the requirement to implement Level 2 demand reduction actions and the ban on irrigating nonfunctional turf, will expire on June 10, 2023.

On April 11, 2023, the San Francisco Public Utilities Commission (SFPUC) unanimously passed an action to rescind their declaration of a local water shortage emergency. While the declaration has been rescinded, there remains a voluntary call for an 11% water use reduction within the San Francisco Regional Water System. The action approved by the SFPUC enables that 11% call to be dropped when the associated SWRCB drought action requirements are eliminated or expire. SWRCB requirements expire on June 10, 2023.

DISCUSSION:

Water Supply Update
Water supply conditions in the San Francisco Regional Water System (SFRWS) have drastically improved in the past three months. As of March 20, 2023, the SFRWS is at 87.2% of total system storage. For comparison, the median storage level for this day is 80.2%, which is based on historical storage data from years 1991 through 2020. Refer to the attachment for more information.

Regional Water Emergency Response
April 11, 2023, the San Francisco Public Utilities Commission unanimously passed an action to rescind their declaration of a local water shortage emergency while maintaining a voluntary call for an 11% water use reduction within the San Francisco Regional Water System. A copy of their meeting Agenda and conservation actions is found in Attachment 3.

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5 San Bruno Customer Water Use Reductions
San Bruno customers have responded tremendously to meet City’s water conservation efforts since the last major drought in 2014. Through April 2023, combined San Bruno residential, commercial, and city government customers have reduced water use by 21% from 2013 levels.

The State’s new base comparison year is 2020. Using this metric, overall water use has decreased 8% from April 2020 to April 2023.

Moving to Level 1 of the Water Shortage Contingency Plan On June 7, 2022, the City Council approved activating Level 2 conservation initiatives. In response to Governor Newson rescinding the State’s Water Shortage Emergency Declaration, San Bruno will return to Level 1 voluntary water conservation targeting up to a 10 percent voluntary reduction in water usage.

Under the City’s Water Shortage Contingency Plan, adopted by the City Council at the October 26, 2021 City Council Meeting, there are six standard water shortage levels that correspond to progressive ranges of up to 10 percent, 20 percent, 30 percent, 40 percent, 50 percent, and greater than 50 percent shortages from the normal supply condition. Each shortage condition corresponds to additional actions water suppliers would implement to meet the severity of the impending shortages.

On-going Water Restrictions
While Executive Order N-5-23 has cut back many water conservation measures, the following restrictions on wasteful water use are still in effect.

1. Wasteful and Unreasonable Water Uses per Title 23, Section 995 of the California Code of Regulations
This emergency regulation was readopted in December 2022 and extended until December 21, 2023. Until then, the following actions are still prohibited:

•The application of potable water to outdoor landscapes in a manner that causes more than incidental runoff such that water flows onto adjacent property, non-irrigated areas, private and public walkways, roadways, parking lots, or structures. •The use of a hose that dispenses water to wash a motor vehicle, except where the hose is fitted with a shut-off nozzle or device attached to it that causes it to cease dispensing water immediately when not in use.
•The use of potable water for washing sidewalks, driveways, buildings, structures, patios, parking lots, or other hard surfaced areas, except in cases where health and safety are at risk.
•The use of potable water for street cleaning or construction site preparation purposes unless no other method can be used or as needed to protect the health and safety of the public. •The use of potable water for decorative fountains or the filling or topping-off of decorative lakes or ponds, with exceptions for those decorative fountains, lakes, or ponds that use pumps to recirculate water and only require refilling to replace evaporative losses.

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5 •The application of water to irrigate turf and ornamental landscapes during and within 48 hours after measurable rainfall of at least one fourth of one inch of rain. •The use of potable water for irrigation of ornamental turf on public street medians.

2. Implementation of local supplier’s Level 2 Water Shortage Contingency Plan and ban on watering non-functional turf at commercial, industrial, and institutional sites per Title 23, Section 996 of the California Code of Regulations
On June 10, 2022, the state prohibited the irrigation of non-functional turf with potable water at commercial, industrial, and institutional areas. “Non-functional turf” is defined as turf that is solely ornamental and not regularly used for human recreational purposes or for civic or community events. Non-functional turf does not include sports fields and turf that is regularly used for human recreational purposes or for community events. Exceptions to this rule include residential lawns, parks, and irrigation as necessary to ensure the health of trees and other perennial non-turf plantings or to the extent necessary to address an immediate health and safety need. This emergency regulatory action expires on June 10, 2023, unless the State Water Resources Control Board modifies, readopts, or ends it before then.

Efforts to Restrict Wasteful Water Use – Implementing Municipal Code Chapter 10.16 The City Council adopted amendments to Chapter 10.16 (Municipal Services – Water Conservation) of the San Bruno Municipal Code at the June 14, 2022 City Council Meeting.

The amended Chapter 10.16 gives the City broader conservation regulation authority short of declaring a water conservation emergency. This authority includes prohibitions on watering outdoor landscapes in a manner that causes runoff and hosing off sidewalks, driveways, and other hardscapes, except to address health and safety needs. The City is making these watering restrictions permanent and are intended to address wasteful water use practices regardless of a drought and are in line with the state goal of making water conservation a “California way of life.”
FISCAL IMPACT:

There is no immediate fiscal impact as a result of approving this action. Increased staff time will be necessary to provide information to citizens, as well as track and respond to water waste reports, carry out enforcement actions if necessary and provide monthly reporting data to SWRCB. Should further resources be necessary to comply with the State’s water conservation requirements, staff will discuss such requests with the City Council and receive direction at that time.

Reduced water consumption does have some impact on Water Fund revenue, and an analysis of these impacts were included during development of the Water Rate Study. Consideration of new water rates is scheduled for City Council review and approval by the end of 2023.

ENVIRONMENTAL IMPACT:

The action is not a project subject to CEQA. City Council’s action is not considered a “Project” per Title 14 California Code of Regulations (CCR) §15378(b)(5) and would not result in a direct

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5 or reasonably foreseeable indirect physical change in the environment (per Title 14 CCR § 15060(c)(2)). Therefore, no further environmental analysis is required.

RECOMMENDATION:

Adopt Resolution:
•Rescinding the Water Shortage Emergency Declaration adopted on June 7, 2022 •Deactivating Level 2 and Activating Level 1 of the San Bruno Water Shortage Contingency Plan; and
•Directing staff to continue implementing water use restrictions consistent with the requirements of Title 23, Sections 995 and 996 of the California Code of Regulations for the duration of the Emergency Regulation
ALTERNATIVES:

Provide direction to staff for additional or alternative water use reduction strategies and requirements to comply with recent amendments to State drought emergency conservation targets.

ATTACHMENTS:

1. Resolution

2. Governor’s Executive Order N-5-23

3. San Francisco Public Utilities Commission Agenda Item 6 from April 11, 2023

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RESOLUTION NO. 2023 - ___
RESOLUTION:
•RESCINDING THE WATER SHORTAGE EMERGENCY DECLARATION
ADOPTED ON JUNE 7, 2022,
•DEACTIVATING LEVEL 2 AND ACTIVATING LEVEL 1 OF THE SAN BRUNO WATER SHORTAGE CONTINGENCY PLAN; AND
•DIRECTING STAFF TO CONTINUE IMPLEMENTING WATER USE
RESTRICTIONS CONSISTENT WITH THE REQUIREMENTS OF TITLE 23, SECTIONS 995 AND 996 OF THE CALIFORNIA CODE OF REGULATIONS FOR

THE DURATION OF THE EMERGENCY REGULATION
WHEREAS, on November 23, 2021, the San Francisco Public Utilities Commission (SFPUC) declared a water shortage emergency calling for 10% voluntary reduction from July 2019 to June 2020 levels; and
WHEREAS, on March 28, 2022, Governor Newsom issued an Executive Order directing the California State Water Resources Control Board and local water agencies to enact shortage response actions consistent with local drought contingency plans; and WHEREAS, on May 24, 2022, the California State Water Resources Control Board adopted emergency regulations for each urban water supplier that has submitted a water shortage contingency plan to the Department of Water Resources to implement, at a minimum, the shortage response actions under Section 10632 of the Water Code for a shortage level of up to twenty percent (Level 2) by June 10, 2022; and WHEREAS, on June 7, 2022, the City Council declared a water shortage emergency, and adopted Level 2 water use restrictions of the City’s Water Shortage Contingency Plan; and
WHEREAS, on June 10, 2022, the state prohibited the use of potable water for the irrigation of “non-functional turf” at large commercial, industrial, and institutional sites in Title 23 California Code of Regulations, Section 996(e)(1). “Non-functional turf” is defined as turf that is solely ornamental and not regularly used for human recreational purposes or for civic or community events. Non-functional turf does not include sports fields and turf that is regularly used for human recreational purposes or for civic or community events. Exceptions to this rule include residential lawns, parks, and irrigation as necessary to ensure the health of trees and other perennial non-turf plantings or to the extent necessary to address an immediate health and safety need; and
WHEREAS, on December 21, 2022, the state re-adopted emergency regulations to prohibit wasteful and unreasonable water uses in Title 23 California Code of Regulations, Section 995; and
WHEREAS, after three consecutive dry years, significant rain and snowfall from this past winter have effectively ended the drought in many areas of the state; and

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2 WHEREAS, as of March 20, 2023, the San Francisco Regional Water System is at

87.2% of total system storage where historically the median storage level for that day is

80.2%; and
WHEREAS, on March 24, 2023, Governor Newsom ended many drought emergency provisions through Executive Order N-5-23 due to current water conditions and maintained other conservation measures that support regions still facing water supply challenges; and WHEREAS, on April 11, 2023, the San Francisco Public Utilities Commission unanimously passed an action to rescind their declaration of a local water shortage emergency while maintaining a voluntary call for an 11% water use reduction within the San Francisco Regional Water System; and
WHEREAS, City of San Bruno residents and businesses have reduced overall water use and made water conservation a way of life since the last major drought in 2014. Through April 2023, combined San Bruno customers have reduced water use by 21% from 2013 levels; and
WHEREAS, the City Council last approved and activated Level 2 the City’s Water Shortage Contingency Plan (WSCP) at the June 7, 2022 City Council Meeting in response to the May 24, 2022 State water shortage emergency declaration; and WHEREAS, in response to Executive Order N-5-23 rescinding the water shortage emergency declaration, the City of San Bruno is deactivating Level 2 and activating Level 1 of Water Shortage Contingency Plan which call for voluntary water use reductions of up to 10 percent.

NOW, THEREFORE, be it RESOLVED, and it is hereby ORDERED, that the City Council hereby:
•Rescinds the Water Shortage Emergency Declaration adopted on June 7, 2022, •Deactivating Level 2 and Activating Level 1 of the San Bruno Water Shortage Contingency Plan; and
•Directing staff to continue implementing water use restrictions consistent with the requirements of Title 23, Sections 995 and 996 of the California Code of Regulations for the duration of the emergency regulation.

Dated: May 23, 2023
ATTEST:

Lupita Huerta, City Clerk

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3 I, Lupita Huerta, 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 23rd day of May 2023 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

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DEPARTMENT Water Enterprise AGENDA NO. 6
MEETING DATE Apr il 11, 2023
APPROVAL:

COMMISSION
SECRETARY Donna Hood

AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Lift Water Shortage Emergency Declaration and Drought Surcharge and Continue Systemwide Water Use Reduction
Project Manager: Paula Kehoe
P
ublic Hearing: Lift Water Shortage Emergency Declaration and Drought Surcharge and Continue Voluntary Systemwide Water Use Reduction of 11% Summary of
Proposed
Commission Action:

Public hearing to consider and possible action to (1) rescind the declaration of a local Water Shortage E mergency adopted by the San F rancisco Public Utilities Commission (SFPUC) on November 23, 2021, by Resolution No. 21- 0177, that also imposed a mandatory temporary drought surcharge for SFPUC retail customers, and (2) continue the voluntary system-wide water use reduction of 11% compared to baseline water use during Fiscal Year 2019 - 2020 to remain consistent with State Water Resources Control Board emergency drought regulations still in effect.

Background: On November 23, 2021, by Resolution No. 21 -0177, the Commission approved the declaration of a local Water Shortage Emergency pursuant to the California Water Code (Division 1, Chapter 3, Sections 350-359) . In the same action, the Commission: (1) called for a voluntary system-wide 10% reduction in water use compared to baseline water use d uring Fiscal Year 2019-2020; (2) authorized the General Manager to implement actions consistent with Shortage Level 1 of the SFPUC’s 2020 Water Shortage Contingency Plan (WSCP), adopted by the C ommission on June 11, 2021, by Resolution No. 21-0100; and (3) implemented a drought surcharge of up to 5% on all retail water and wastewater volumetric rates as of April 1, 2022, in accordance with the Schedule of Retail Water Rates and Wastewater Rates adopt ed by the Commission on April 10, 2018, by Resolution Nos. 18- 0053 and 18-0054, respectively. Per the Schedule of Rates, the drought surcharge rem ains in effect until the Commission adopts a resolution to res cind the local Water Shortage Emergency declaration.

On May 24, 2022, by Resolution No. 22- 0098, the Commission adopted an increased system -wide water use reduction of 11% com pared to baseline water use during Fiscal Year 2019- 2020, consistent with Shortage Level 2 of the SFPUC ’s WSCP and authorized the General Manager to implement

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Agreement: Rescind Water Shortage Emergency Declaration Commission Meeting Date: April 11, 2023

actions under Shortage Level 2 of the WSCP, effective July 1, 2022. Thi s Commission action was taken in response to emergency regulations adopted by the State Water Resources Control Board (State Water Board) by State Water Board Resolution No. 2022-0018 , at the direction of the Governor in Executive Order N -7-22 dated March 28, 2022. On Fe bruary 13, 2023, the Governor issued Executive Order N -3-23, which continued the statewide drought emergency and regulations in effect, but also directed s tate agencies to provide recommendations on whether any existing provisions in the Governor’s drought proclamations and executive orders are no longer needed to mitigate drought conditions.

As of today’s Commission meeting, based on system -wide hydrologic conditions and water storage in the SFPUC’s reservoirs, the SFPUC has determined that a water shor tage condition no l onger exists. Accordingly, Staff recommends that the Commission r escind the SFPUC’s Water Shortage Emergency decla ration and the temporary drought surcharge that the Commission adopted on November 23, 2021, by Resolution No. 21-0177.

The voluntary system-wide water use reduction of 11% that the Commission adopted on May 24, 2022, by Resolution No. 22-0098, must remain in effect consistent with State Water Board regulations (Cal. Code of Regulations, ti tle 23, section 996), which continue to require the SFPUC to remain in Level 2 of its drought response in its WSCP. If and when the State Water Board modifies its regulations to no longer require the SFPUC to implement Level 1 or Level 2 actions of its WSCP, the SFPUC may rescind its resolution adopting Level 2 of its WSCP , including the 11% voluntary system -wide reduction. Also, the minimum annual purchase requirements that apply to certain SFPUC wholesale water customers that have other sour ces of water supply available to them, under Section 3.07.C of the Water Supply Agreement between the SFPUC and its wholesale customers, as amended and restated on January 26, 2021, by Resolution No. 21-0009, with subsequent approval by the wholesal e customers, will continue to be waived until the State Water Board modifies or ends its regulations requiring L evel 2 implementation , because the State Water Board’s regulations were developed at the direction of the Governor in Executive Order N-7-22 and result in impacts to water supply deliveries from the Regional Water System.

The SFPUC believes it is no longer necessary for the State to maintain a statewide requirement that all agencies with a WSCP remain in Shortage Level 2 of their drought response plans. On March 16, 2023, in response to the greatly improved local and statewide hydrologic conditions, t he SFPUC submitted a letter to the Chair of the State Water Board and Director of the California Department of Water Resources, requesting they advise the Governor to modify the current drought proclamation to lift requirements for WSCP L evel 2 actions from water agencies with sufficient , demonstrated supplies. ( See Attachment 1). On March 24, 2023, i n response to these improved conditions, the Governor iss ued E xecutive Or der N -5-23, which rescinded the relevant portions of Executive Order N -7-22 that prompted the State Water Board to require urban water suppliers to implement Level 2 of

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Agreement: Rescind Water Shortage Emergency Declaration Commission Meeting Date: April 11, 2023

their drought response plans. While it is likely that the State Water Board will act in response to the Governor’s March 24, 2023 termination, the State Water Board has not indicated if or when it plans to lift th is requirement i n its regulations.

The SFPUC’s temporary water waste restrict ion on u se of potable water to irrigate non-functional, ornamental commercial turf during drought, which the Commission adopted on June 28, 2022, by Resolution No. 22-0126, to align with the State Water Board’s drought requirements, also remains in effect.

Pursuant to San Francisco Charter Section 4.104(a)(1), a Notice of Publ ic Hearing was posted at the San Francisco Main Library and on the SFPUC’s website on March 20, 2023.

Description of
Action:

This item seeks Commissi on approval to rescind Resolution No. 21-0177, thereby (1) ending the local W ater Shortage E mergency de claration and (2) ending the retail customer drought surcharge effective May 1, 2023, and to rescind the voluntary system-wide water use r eduction of 11% (Resolution No. 22-0098) when the State Water Board modifies or ends its drought emergency regulations to no longer requir e the SFPUC to implement the drought response actions of its WSCP.

Result of Inaction: A delay i n adopti ng th is Action wi ll hinder the SFPUC’s ability to lift its Water Shortage Emergency declaration and end the temporary drought surcharge on retail customers , actions which are no longer needed du e to greatly improved systemwide hydrologic conditions.

Schedule: The local Water Shortage Emergency declaration will end e ffective immediately upon Commission approval. The retail custo mer drought surcharge will end effective May 1, 2023. Th e voluntary system-wide water use reduction of 11% and corresponding wai ver o f the minimum annual purchase requirements that apply to certain wholesale water customers of the SFPUC will end effective immediately upon State Water Board action to end implementation of Level 1 or Level 2 actions and the SFPUC rescinding its Resolution No. 22-0098.

Environmental
Review:

On November 23, 2021, by Resolutio n No. 21-0177, this C ommission declared a Water Shortage Emergency. Prior to this, on November 12, 2021, the Planning Department determined that authorization of the SFPUC General Manager to implement the SFPUC’s WSCP in response to the emergency is statutorily exempt from environmental review in accordance with California Environmental Quality Act ( CEQA) S ection 2108 0(b)(4) and CEQA Guidelines S ection 15269(c) (Case Number 2021-011567EN V), whic h exempt specific actions necessary to prevent or mitigate an emergen cy. The continued voluntary system-wide water use reduction , consistent with State Water Resources Control Board emergency drought regulations, remains within the scope of the project authorized under the Statutory Exemption. The exemption can be found here:
https://sfpuc.sharefile.com/share/view/sb0240d712b4f4131aac974730e184b67

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Agreement: Rescind Water Shortage Emergency Declaration Commission Meeting Date: April 11, 2023

Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.

Attachments: 1. SFPUC Letter to State Wa ter Boa rd and Department of Water Resources

2. Governor’s Executive Order N-5-23 to Ease Drought Restrictions

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PUBLIC UTILITIES COMMISSION
City and County of San Francisco

RESOLUTION NO.

WHEREAS, On November 23, 2021, by Resolut ion No. 21-0177, t he San Francisco Public Utilities Commission (SFPUC) declared a local Water Shortage Emergency and adopted a 10% systemwide water use reduc tion compared to baseline water use during Fiscal Year 2019- 2020, which called for a 5% water use reduction by the SFPUC’s retail customers and 13.7% water use reduction by the SFPUC’s wholesale custo mers, to collectively achieve a systemwide water use red uction of 10% , consistent with Short age Level 1 of the SFPUC’s Water Shortage Contingency Plan (WSCP), adopted by the Commission on June 11, 2021, by Resolution No. 21- 0100, and the Water Shortage Allocation Plan (WSAP), which is Attachment H of the Water Supply Agreement between the City an d County of San Francisco and it s Wholesale Customers in Alameda County, San M ateo County, and Santa Clara County, as amended and restated on January 26, 2021, by Resolution No. 21-0009 , with subsequent approval by the wholesale customers (Water Supply Agreement); and
WHEREAS, On March 28, 2022, the Governor issued Executive Order N -7-22, which directed the State Wate r Resources Control Board ( State Water Board) to adopt emergency regulations requiring each urban water supplier that has submitted a WSCP to the California Department of Water Resources to implement, at a minimum, shortage response acti ons adopted under Section 10632 of the Ca lifornia Water Code for a shortage level of up to 20% (Shortage Level 2); and
WHEREAS, On May 24, 2022, the State Water Board adopted such regulations by S tate Water Board Res olution No. 2022-0018, Resolution to Adopt an E mergency Regulation to Reduce Demand and Improve Water Co nservation, 23 Cal. Code of Regulations § 996 (Stat e Water Board Regulations); and
WHEREAS, In resp onse to the State Water Board Regulations, on May 24, 2022, by Resolution No. 22-0098, the Commission adopted an increased system-wide water use reduction of 11% compared to baseline water use dur ing Fiscal Year 2019 -2020, consistent with Shortage Level 2 of the SFPUC’s WSCP, and authorized the General Manager to implement actions under Shortage Level 2 of the WSCP, effective July 1, 2022; and WHEREAS, On February 13, 2023, the Governor issued Executive Order N-3-23, which continued the statewide drought emergency and regulations in effect, but also directed s tate agencies to provide recommendation s on whether any existing provisions in the Governor ’s drought proclamations and executive orders are no longer needed to mitigate drought conditions; and
WHEREAS, o n March 24, 2023, the Gover nor issued Executive Order N -5-23, which among other actions terminated the portion of Executive Order N -7-22 that prompted the State Water Board to adopt Resolution No. 22-0018 and require urban water suppliers to implement, at minimum, Level 2 of their water shortage contingency plans; and

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WHEREAS, B ased o n systemwide hydrologic conditions and water storage in the SFPUC’s reservoirs as of the date of this Commission meeting and as projected through the rest of the year , the SFPUC has determined that a w ater shortage c ondition no longer exists, and therefore a declaration of a local Water Shortage Emergency is no longer needed; and WHEREAS, The voluntary system-wide water use reduction of 11% that the Commission adopted on May 24, 2022, by Resolution No. 22-0098, remains in effect, consistent with the State Water Board Regulations that were adopted May 24, 2022, at the direction of the Governor in Executive Order N -7-22, and Resolution No. 22- 0098 should be rescinded if and when the State W ater Board modifies those regulations to no longer require the SFPUC t o implement at Level 1 or Level 2 of its WSCP; and
WHEREAS, The mini mum annual purchase requirements that apply to cert ain SFPUC wholesale water customers under Section 3.07.C of the Water Supply Agreement will continue to be waived until the State Water Board modifies its regulations to no longer require the SFPUC to implement Level 2 of its WSCP implementation, because the State Water Board Regulations were developed at the direction of the Governor in Executive Order N -7-22 and result in impacts to water supply deliveries from the Regional Water System; and WHEREAS, On November 12, 2021 the San F rancisco Planning Department Environmental Review Officer issued a statutory exemption determination under California Environmental Quality Ac t (“ CEQA”) Section 21080(b) (4) and CEQA Guidelines Secti on 15269(c), under Case Number 2021-011567ENV and the continued voluntary system-wide water use reduction, consistent with State Water Resources Control Board emergency drought regulations, remains within the scope of the project authorized under the Statutory Exemption; and
WHEREAS, Pursuant to San Francisco Charter Section 4.104(a)(1), a Notice of P ublic Hearing regarding the action to rescind the local declaration of a Water Shortage Emergency was posted at the San Francisco Main Library and on the SFPUC website on March 20, 2023, now, therefore, be it
RESOLVED, That the Commission rescinds Resolution No. 21-0177, thereby ending t he local water shortage emergency declaration (Cal. Water Code §§ 350-359), and ending the 5% retail customer drought surcharge effective May 1, 2023; and be it FURTHER RESOLVED, That Res olution No. 22-0098, which adopted a vo luntary system-wide water use reduction of 11% and directed the General Manager to take other actions consistent with Le vel 2 of the WSCP , shall be rescinded effective upon the termination, rescission, or amendment of the State Water Board Regulations to no longe r require SFPUC to implement Level 1 or Level 2 actions of the SFPUC’s WSCP.

I hereby certify that the foregoing resolution was adopted by the Public Utilitie s Commission at its meeting of April 11, 2023.

Secretary, Public Utilities Commission

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OUR MISSION: To provide our customers with high-quality, efficient, and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.

525 Golden Gate Avenue, 13th Floor
San Francisco, CA 94102
T 415.554.3155
F 415.554.3161
TTY 415.554.3488

March 16. 2023

Joaquin Esquivel, Chair
State Water Resources Control Board
1001 I Street Sacramento, CA 95814
Karla Nemeth, Director
California Department of Water Resources
1416 Ninth Street, Sacramento, CA 95814

Dear Chair Esquivel and Director Nemeth,

The San Francisco Public Utilities Commission (SFPUC) is submitting this letter for your consideration of recommended changes to the Governor’s emergency drought proclamations and executive orders currently in effect.

The Governor’s February 2023 Executive Order N-3-23 extended the duration of existing emergency drought proclamations and orders and requested State agencies to provide recommendations for what further actions, if any, are necessary for ongoing emergency drought response, and whether any existing provisions are no longer needed to prepare for and mitigate the effects of the drought conditions.

Given the dramatic improvement in water supply conditions in much of California, we recommend State emergency drought regulations be modified to rescind requirements for Water Shortage Contingency Plan Level 2 response actions from water suppliers with demonstrated sufficient supplies that face no water shortages.

The SFPUC’s regional system serves 2.7 million people in four Bay Area counties. Starting in 2021, to align with the State’s escalating drought response actions, the SFPUC adopted a local declaration of drought emergency, seeking systemwide reductions and imposing a drought surcharge on our retail customers and water budgets on our wholesale customers. In 2022, we modified our local declaration to reflect the Governor’s March 2022 Executive Order N-7-22, that among other things, directed urban water suppliers to implement Level 2 shortage response actions. We also conducted a major drought outreach campaign across our system and provided extensive conservation assistance through our ongoing programs. Our customers responded positively, and we met our systemwide 11 percent reduction goal.

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We expect our regional water system to fill this year. Extremely wet conditions since December 2022 show that hydrologically we are in good shape. Through March 12, 2023 our Sierra precipitation index was 52.86 inches compared to an annual average total of 36.68 inches. Similarly, our Bay Area precipitation index was 37.44 inches compared to an annual average total of 22.80 inches.

Our reservoirs, including our Water Bank in Don Pedro Reservoir, after snowmelt will be 100% full this year. But rain or shine, we continue to implement a robust conservation program for our retail service area and across our regional system through the Bay Area Water Supply and Conservation Agency that represents our wholesale customers.

We hope you will consider our recommendation that the State’s emergency drought regulations be modified to rescind requirements for Level 2 response actions from suppliers like the SFPUC with ample supplies, no foreseeable water shortages, and ongoing comprehensive demand management programs.

Sincerely,

Dennis J. Herrera
General Manager

cc: Nicole Sandkulla, CEO and General Manager, BAWSCA

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EXECUTIVE DEPARTMENT

STATE OF CALIFORNIA
EXECUTIVE ORDER N-5-23
WHEREAS on April 21, 2021, May 10, 2021, July 8, 2021, and October 19, 2021, I proclaimed States of Emergency to exist due to drought conditions; and WHEREAS the multi-year nature of the current drought, which began three years after the record-setting drought of 2012-2016, continues to have significant, immediate impacts on communities across California with vulnerable water supplies, farms that rely on irrigation to grow food and fiber, and fish and wildlife that rely on stream flows and cool water; and
WHEREAS the March 3, 2023, snow survey conducted by the Department of Water Resources and partner agencies found that most regions of the Sierra Nevada are above average for snow water content, and some regions are nearing record amounts of snow, and snow and rain has fallen across many regions of the state since then, with more precipitation forecasted; and WHEREAS improved conditions have helped rehabilitate surface water supplies, but have not abated the severe drought conditions that remain in some parts of the State, including the Klamath River basin and the Colorado River basin, and many groundwater basins throughout the State remain depleted from overreliance and successive multi-year droughts; and WHEREAS continued action by the State is needed to address ongoing consequences of the drought emergency, including groundwater supply shortages, domestic well failures, and drought-related harm to native fishes in the Klamath River and Clear Lake watersheds; and
WHEREAS the drought emergency has required a dynamic and flexible response from the State, and several provisions in my prior Proclamations and Orders have been terminated or superseded already, specifically Paragraphs 4 and 8 of my State of Emergency Proclamation dated April 21, 202l, Paragraphs 2, 4, and 7 of my State of Emergency Proclamation dated May 10, 2021, Paragraphs 3, 4, 5, 6, and 10 of my State of Emergency Proclamation dated July 8, 2021, and Paragraph 9 of Executive Order N-7-22; and WHEREAS improved conditions warrant an even more targeted State response to the ongoing drought emergency and certain provisions in my State of Emergency Proclamations dated April 21, 202 l, May 10, 2021, July 8, 2021, and October 19, 2021, and in Executive Orders N-10-21, N-7-22, and N-3-23 provide authority that is no longer needed to mitigate the effects of the drought conditions or direct actions by state agencies, departments, and boards that have already been completed; and
WHEREAS notwithstanding the rescission of certain emergency authorities for emergency drinking water action, state agencies have existing legal authority and funding to continue expedited work to advance the human right to water, and state agencies will continue all ongoing drought resilience planning work, including through coordination with loca l agencies and tribes; and

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WHEREAS next winter's hydrology is uncertain and the most efficient way to preserve the State's improved surface water supplies is for Californians to continue their ongoing efforts to make conservation a way of life; and WHEREAS to protect public health and safety, it is critical the State take certain immediate actions without undue delay to prepare for and mitigate the effects of the drought conditions, and under Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this Order would prevent, hinder, or delay the mitigation of the effects of the drought conditions.

NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, including the California Emergency Services Act, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:

IT IS HEREBY ORDERED THAT:
l . The orders and provisions contained in my State of Emergency Proclamations dated April 21, 2021, May 10, 2021, July 8, 2021, and October 19, 2021, and Executive Orders N-7-22 (March 28, 2022), N-3- 23 (February 13, 2023), and N-4-23 (March l 0, 2023), remain in full force and effect, except as modified by those Proclamations and Orders and herein. State agencies shall continue to implement all directions from those Proclamations and Orders and accelerate implementation where feasible.

2. The following provisions of my State of Emergency Proclamation dated April 21, 2021, are terminated:
a. Paragraph 2;
b. Paragraphs 5-7; and
c. Paragraphs 9-14.

3. The following provisions of my State of Emergency Proclamation dated May l 0, 2021, are terminated:
a. Paragraph 1;
b. Paragraph 3;
c. Paragraph 5; and
d. Paragraphs 9-10.

4. The following provisions of my State of Emergency Proclamation dated July 8, 2021, are terminated:
a. Paragraph 2;
b. Paragraphs 7-8, except those portions of paragraph 7 withdrawing provisions of prior orders;
c. Paragraphs 11-12.

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5. The following provisions of my State of Emergency Proclamation dated October 19, 2021, are terminated:
a. Paragraph 2;
b. Paragraphs 4-5;
c. Paragraph 8; and
d. Paragraph 10.

6. The following provisions of Executive Order N-10-21 are terminated:
a. Paragraph 1; and
b. Paragraph 3

7. The following provisions of Executive Order N-7-22 are terminated:
a. Paragraphs 1-3;
b. Paragraph 6; and
c. Paragraphs 14-15.

8. The following provisions of Executive Order N-3-23 are terminated:
a. Paragraph 1; and
b. Paragraph 3, except those portions of the paragraph
withdrawing provisions of prior orders.

9. Paragraph 6 of my State of Emergency Proclamation dated May 10, 2021, and Paragraph 9 of my State of Emergency Proclamation dated July 8, 2021, are withdrawn and replaced with the following text:

To ensure critical instream flows for species protection in the Klamath River and Clear Lake watersheds, the State Water Resources Control Board (Water Board) and Department of Fish and Wildlife shall evaluate the minimum instream flows and other actions needed to protect salmon, steelhead, the Clear Lake Hitch, and other native fishes in critical streams systems in these watersheds and work with water users, tribes, and other parties on voluntary measures to implement those actions. To the extent voluntary actions are not sufficient, the Water Board, in coordination with the Department of Fish and Wildlife, shall consider emergency regulations to establish minimum instream flows to mitigate the effects of the drought conditions. For purposes of state agencies carrying out or approving any actions contemplated by this paragraph, Public Resources Code, Division 13 (commencing with Section 21000) and regulations adopted pursuant to that Division are suspended. Nothing in this Paragraph affects or limits the validity of actions already taken in the Klamath and Clear Lake watersheds or ongoing under Paragraph 6 of my State of Emergency Proclamation dated May 10, 2021, or Paragraph 9 of my State of Emergency Proclamation dated July 8, 2021 .

IT IS FURTHER ORDERED that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order.

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This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.

IN WITNESS WHEREOF I have hereunto set
my hand and caused the Great Seal of the
State of California to be affixed this 24th
day of March 2023.
overnor of California
ATTEST:

SHIRLEY N. WEBER, PH.D.

Secretary of State

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:May 23, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Cora Dino, Chief People Officer
PREPARED BY:Cora Dino, Chief People Officer
SUBJECT: Consider Adoption of a Resolution Approving Publicly Available Pay Schedule Pursuant to the Public Employees' Retirement Law (PERL), Public Employees' Pension Reform Act of 2013 (PEPRA), and Title 2 of the California Code of Regulations (CCR)
BACKGROUND: Based on salary changes resulting from bargaining unit contracts approved by Council and most recently the Council approved resolution of the City Manager job classification salary schedule, staff proposes to adopt a resolution approving the current employee pay schedule for public posting. Per the California Public Employees’ Retirement System (CalPERS) Circular Letter 200-00320 issued January 8, 2020, the Public Employees’ Retirement Law (PERL), Public Employees’ Pension Reform Act of 2013 (PEPRA), and Title 2 of the California Code of Regulations (CCR) require employees to be paid pursuant to a publicly available pay schedule that meets the requirements of CCR Section 570.5(a) to qualify as both compensation earnable and pensionable compensation that is reportable to CalPERS.

While the City has historically met requirements for publication of pay schedules, action to adopt a single unified pay schedule is required by the CalPERS Circular Letter. Adoption of the unified pay schedule does not affect the salary or compensation paid to any City employee, but merely restates pay rates that have already been approved by the City Council at public meetings.

DISCUSSION: The updated City of San Bruno Employee Monthly Pay Schedule (Exhibit A) before City Council for approval contains:
•The recently approved City Manager job classification salary schedule •Pay schedules previously approved via Memorandums of Understanding with the City’s respective bargaining units and employment agreement/programs with appointed and unrepresented employees.

The proposed job title change to Chief Financial Officer and proposed salary adjustment item is also on the May 23 council agenda. Should the Council approve the resolution, the Chief Financial Officer job title and approved salary will be included in the publicly available pay schedule.

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Honorable Mayor and Members of the City Council
May 23, 2023

Page 2 of 2 ends

There are eight (8) requirements that must be met by a publicly available pay schedule for it to be used to determine pay rates per the CalPERS Circular Letter:
1) Be duly approved and adopted by the employer's governing body in accordance with requirements of applicable public meetings laws.
2) Identify the position title for every employee position. 3) Show the pay rate as a single amount or multiple amounts within a range for each identified position.
4) Indicate the time base, including, but not limited to, whether the time base is hourly, daily, biweekly, monthly, bi-monthly, or annually.
5) Be posted at the office of the employer or immediately accessible and available for public review from the employer during normal business hours or posted on the employer's website.
6) Indicate an effective date and date of any revisions. 7) Is retained by the employer and available for public inspection for not less than five years. 8) Does not reference another document in lieu of disclosing the pay rate.

Future revisions/updates to the pay schedule will be brought to City Council for approval as warranted by MOU negotiations and position creation/changes.

FISCAL IMPACT: There is no fiscal impact.

ENVIRONMENTAL IMPACT: There is no environmental impact.

RECOMMENDATION: Adopt Resolution Approving Publicly Available Pay Schedule Pursuant to the Public Employees’ Retirement Law (PERL), Public Employees’ Pension Reform Act of 2013 (PEPRA), and Title 2 of the California Code of Regulations (CCR).

ALTERNATIVES: Do not adopt a publicly available pay schedule pursuant to the Public Employees’ Retirement Law and risk potential penalties.

ATTACHMENTS:

1. Resolution with Exhibit A - Pay Schedule 2023

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1 4
9 4
RESOLUTION NO. 2023 –

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO

ADOPTING A RESOLUTION APPROVING THE CHIEF FINANCIAL OFFICER

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
________________________________
Lupita Huerta, City Clerk

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Exhibit A
CLASSIFICATION BARGAINING UNIT EFFECTIVE DATE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 CITY MANAGER Exempt (By Employment Agreement) 3/1/2023 22,928 32,083 CLASSIFICATION BARGAINING UNIT EFFECTIVE DATE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 ACCOUNTANT Mid-Management 1/2/2023 7,232 7,612 8,012 8,433 8,876 ACCOUNTING & CUSTOMER SERVICE REP I Miscellaneous 1/2/2023 4,893 5,150 5,420 5,705 6,005 ACCOUNTING & CUSTOMER SERVICE REP II Miscellaneous 1/2/2023 5,627 5,922 6,233 6,560 6,904 ACCOUNTING & CUSTOMER SERVICE REP III Miscellaneous 1/2/2023 6,471 6,811 7,169 7,545 7,941 ACCOUNTING MANAGER Mid-Management 1/2/2023 10,163 10,697 11,259 11,850 12,472 ASSISTANT CITY MANAGER Exempt (Management Benefits) 1/2/2023 16,840 17,724 18,654 19,633 20,664 ASSISTANT ENGINEER Mid-Management 1/2/2023 8,389 8,829 9,293 9,781 10,294 ASSISTANT PLANNER Mid-Management 1/2/2023 6,886 7,248 7,629 8,029 8,450 ASSISTANT TO CITY MANAGER Exempt (Mid-Management Benefits) 1/2/2023 10,163 10,697 11,259 11,850 12,472 ASSOCIATE CIVIL ENGINEER Mid-Management 1/2/2023 9,648 10,154 10,687 11,248 11,838 ASSOCIATE PLANNER Mid-Management 1/2/2023 7,917 8,333 8,771 9,232 9,717 BUILDING INSPECTOR I Mid-Management 1/2/2023 7,058 7,429 7,819 8,229 8,661 BUILDING INSPECTOR II Mid-Management 1/2/2023 7,917 8,333 8,771 9,232 9,717 CATV BUSINESS MANAGER Mid-Management 1/2/2023 10,163 10,697 11,259 11,850 12,472 CATV DIRECTOR (CITYNET SERVICES DIRECTOR) Management 1/2/2023 16,034 16,876 17,762 18,694 19,675 CATV HEADEND TECHNICIAN Miscellaneous 1/2/2023 7,478 7,871 8,284 8,719 9,177 CATV PROGRAMMING TECHNOLOGY MANAGER Mid-Management 1/2/2023 8,474 8,919 9,387 9,880 10,399 CATV SYSTEM ENGINEER Mid-Management 1/2/2023 10,163 10,697 11,259 11,850 12,472 CATV TECHNICIAN I Miscellaneous 1/2/2023 6,407 6,743 7,097 7,470 7,862 CATV TECHNICIAN II Miscellaneous 1/2/2023 6,600 6,947 7,312 7,696 8,100 CATV TECHNICIAN III Miscellaneous 1/2/2023 6,799 7,156 7,532 7,927 8,343 CHIEF BUILDING OFFICIAL Mid-Management 1/2/2023 11,274 11,866 12,489 13,145 13,835 CHIEF FINANCIAL OFFICER Management 5/23/2023 187,365 234,264 CITY CLERK Exempt (Mid-Management Benefits) 1/2/2023 9,868 10,386 10,931 11,505 12,109 CITYNET SERVICES TECHNICAL MANAGER Mid-Management 1/2/2023 9,769 10,282 10,822 11,390 11,988 CODE ENFORCEMENT OFFICER I Police 1/2/2023 6,594 6,940 7,304 7,687 8,091 CODE ENFORCEMENT OFFICER II Police 1/2/2023 7,251 7,632 8,033 8,455 8,899 COMMUNITY AND ECONOMIC DEVELOPMENT DIRECTOR Management 1/2/2023 15,635 16,456 17,320 18,229 19,186 COMMUNITY DEVELOPMENT TECHNICIAN I Miscellaneous 1/2/2023 5,739 6,040 6,357 6,691 7,042 COMMUNITY DEVELOPMENT TECHNICIAN II Miscellaneous 1/2/2023 6,600 6,947 7,312 7,696 8,100 COMMUNITY SERVICES DIRECTOR Management 1/2/2023 15,723 16,548 17,417 18,331 19,293 COMMUNITY SERVICES OFFICER II Police 1/2/2023 4,926 5,185 5,457 5,743 6,044 COMMUNITY SERVICES SUPERINTENDENT Mid-Management 1/2/2023 10,038 10,565 11,120 11,704 12,318 COMPUTER SUPPORT TECHNICIAN Miscellaneous 1/2/2023 6,573 6,918 7,281 7,663 8,065 CUSTODIAN Miscellaneous 1/2/2023 5,231 5,506 5,795 6,099 6,419 CUSTODIAL SERVICES LEADER Miscellaneous 1/2/2023 6,016 6,332 6,664 7,014 7,382 DEPUTY CITY CLERK Exempt (Miscellaneous Benefits) 1/2/2023 6,305 6,636 6,984 7,351 7,737 DEPUTY DIRECTOR - COMM SERVICE Mid-Management 1/2/2023 11,571 12,178 12,817 13,490 14,198 DEPUTY PUBLIC WORKS DIR - PW Admin & Engineering Mid-Management 1/2/2023 13,210 13,903 14,633 15,401 16,210 DEPUTY PUBLIC WORKS DIR - PW Utilities & Operations Mid-Management 1/2/2023 12,134 12,771 13,442 14,148 14,891 DEPUTY PUBLIC WORKS DIR - PW Utilities & Operations with PE Mid-Management 1/2/2023 13,210 13,903 14,633 15,401 16,210 ECONOMIC DEVELOPMENT MANAGER Exempt (Mid-Management Benefits) 1/2/2023 10,163 10,697 11,259 11,850 12,472 ENGINEER TECH/PW INSPECTOR Miscellaneous 1/2/2023 7,529 7,924 8,340 8,778 9,239 EXECUTIVE ASSISTANT Miscellaneous 1/2/2023 6,182 6,507 6,849 7,209 7,587 EXECUTIVE ASSISTANT TO THE CITY MANAGER Exempt (Miscellaneous Benefits) 1/2/2023 6,943 7,307 7,691 8,095 8,520 FACILITIES TECH I Miscellaneous 1/2/2023 5,739 6,040 6,357 6,691 7,042 FACILITIES TECH II Miscellaneous 1/2/2023 6,600 6,947 7,312 7,696 8,100 FIELD SUPERVISOR Mid-Management 1/2/2023 7,580 7,978 8,397 8,838 9,302 FIELD SUPERVISOR - CATV Mid-Management 1/2/2023 7,580 7,978 8,397 8,838 9,302 FIELD SUPERVISOR - PARKS Mid-Management 1/2/2023 7,580 7,978 8,397 8,838 9,302 FINANCIAL SERVICES MANAGER Mid-Management 1/2/2023 10,163 10,697 11,259 11,850 12,472 FINANCIAL SERVICES SUPERVISOR Mid-Management 1/2/2023 8,295 8,730 9,188 9,670 10,178 FIRE BATTALION CHIEF Public Safety Mid-Management 1/2/2023 13,937 14,669 15,439 16,250 17,103 FIRE CAPTAIN Fire 1/2/2023 10,705 11,267 11,859 12,482 13,137 FIRE CHIEF Management 1/2/2023 17,619 18,544 19,518 20,543 21,622 FIRE INSPECTOR Fire 1/2/2023 8,184 8,614 9,066 9,542 10,043 FIREFIGHTER Fire 1/2/2023 8,848 9,312 9,801 10,316 10,858 FIREFIGHTER RECRUIT Fire 1/2/2023 7,963
FOOD SERVICES COORDINATOR Miscellaneous 1/2/2023 6,058 6,376 6,711 7,063 7,434 HR DIRECTOR/CHIEF PEOPLE OFFICER Exempt (Management Benefits) 1/2/2023 15,485 16,298 17,154 18,055 19,003 HUMAN RESOURCES MANAGER Exempt (Mid-Management Benefits) 1/2/2023 10,163 10,697 11,259 11,850 12,472 INFORMATION TECHNOLOGY ASSOCIATE Mid-Management 1/2/2023 7,705 8,109 8,535 8,983 9,455 INFORMATION TECHNOLOGY MANAGER Mid-Management 1/2/2023 10,663 11,223 11,812 12,432 13,085 LEAD CUSTOMER SERVICE & TECH SUPPORT REP Miscellaneous 1/2/2023 7,248 7,629 8,029 8,450 8,894 LEAD MAINTENANCE WORKER Miscellaneous 1/2/2023 6,600 6,947 7,312 7,696 8,100 LEAD WATER SYSTEM OPERATOR - PUMPS Miscellaneous 1/2/2023 7,699 8,103 8,528 8,976 9,447 LEAD WATER SYSTEMS OPERATOR - FIELD Miscellaneous 1/2/2023 7,699 8,103 8,528 8,976 9,447 LEAD WATER SYSTEMS OPERATOR - WELLS Miscellaneous 1/2/2023 7,699 8,103 8,528 8,976 9,447 LEGAL SECRETARY Exempt (Miscellaneous Benefits) 1/2/2023 6,943 7,307 7,691 8,095 8,520 LIBRARIAN I Miscellaneous 1/2/2023 6,020 6,336 6,669 7,019 7,387 LIBRARIAN II Miscellaneous 1/2/2023 6,922 7,285 7,667 8,070 8,494 LIBRARY ASSISTANT I Miscellaneous 1/2/2023 4,581 4,822 5,075 5,341 5,621 LIBRARY ASSISTANT II Miscellaneous 1/2/2023 5,269 5,546 5,837 6,143 6,466 LIBRARY SERVICES COORDINATOR Miscellaneous 1/2/2023 6,058 6,376 6,711 7,063 7,434 LIBRARY SERVICES MANAGER Mid-Management 1/2/2023 9,303 9,791 10,305 10,846 11,415 MAINTENANCE SERVICES MANAGER SERIES Mid-Management 1/2/2023 9,769 10,282 10,822 11,390 11,988 MAINTENANCE WORKER I Miscellaneous 1/2/2023 4,989 5,251 5,527 5,817 6,122 CITY OF SAN BRUNO EMPLOYEE MONTHLY PAY SCHEDULE 2023

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MAINTENANCE WORKER II Miscellaneous 1/2/2023 5,739 6,040 6,357 6,691 7,042 MANAGEMENT ANALYST I Mid-Management (HR - Exempt Mid-Management Benefits) 1/2/2023 7,125 7,499 7,893 8,307 8,743 MANAGEMENT ANALYST II Mid-Management (HR - Exempt Mid-Management Benefits) 1/2/2023 8,193 8,623 9,076 9,552 10,053 MECHANIC I Miscellaneous 1/2/2023 5,739 6,040 6,357 6,691 7,042 MECHANIC II Miscellaneous 1/2/2023 6,600 6,947 7,312 7,696 8,100 NUTRITION PROGRAM MANAGER Mid-Management 1/2/2023 7,437 7,827 8,238 8,671 9,126 PARKS AND FACILITIES MANAGER Mid-Management 1/2/2023 9,615 10,120 10,651 11,210 11,798 PARKS MAINTENANCE TECHNICIAN I {UTILITY I - TREE I} Miscellaneous 1/2/2023 5,739 6,040 6,357 6,691 7,042 PARKS MAINTENANCE TECHNICIAN II {UTILITY II - TREEII} Miscellaneous 1/2/2023 6,600 6,947 7,312 7,696 8,100 PLANNING AND HOUSING MANAGER Mid-Management 1/2/2023 10,661 11,221 11,810 12,430 13,083 POLICE CAPTAIN Public Safety Mid-Management 1/2/2023 15,446 16,257 17,110 18,008 18,953 POLICE CHIEF Management 1/2/2023 17,619 18,544 19,518 20,543 21,622 POLICE CLERK I Police 1/2/2023 5,287 5,565 5,857 6,165 6,489 POLICE CLERK II Police 1/2/2023 5,818 6,123 6,444 6,782 7,138 POLICE COMMUNICATIONS & RECORDS SUPERVISOR Mid-Management 1/2/2023 10,384 10,929 11,503 12,107 12,743 POLICE CORPORAL Police 1/2/2023 9,479 9,977 10,501 11,052 11,632 POLICE LIEUTENANT Public Safety Mid-Management 1/2/2023 13,468 14,175 14,919 15,702 16,526 POLICE OFFICER Police 1/2/2023 8,817 9,280 9,767 10,280 10,820 POLICE RECRUIT Police 1/2/2023 7,935
POLICE SERGEANT Public Safety Mid-Management 1/2/2023 10,859 11,429 12,029 12,661 13,326 PRINCIPAL CIVIL ENGINEER Mid-Management 1/2/2023 11,611 12,221 12,863 13,538 14,249 PUBLIC SAFETY DISPATCHER I Police 1/2/2023 6,896 7,258 7,639 8,040 8,462 PUBLIC SAFETY DISPATCHER II Police 1/2/2023 7,585 7,983 8,402 8,843 9,307 PUBLIC WORKS DIRECTOR Management 1/2/2023 16,034 16,876 17,762 18,694 19,675 PUMP MECHANIC I Miscellaneous 1/2/2023 5,739 6,040 6,357 6,691 7,042 PUMP MECHANIC II Miscellaneous 1/2/2023 6,600 6,947 7,312 7,696 8,100 RECREATION SERVICES COORDINATOR Miscellaneous 1/2/2023 6,058 6,376 6,711 7,063 7,434 RECREATION SERVICES MANAGER Mid-Management 1/2/2023 8,527 8,975 9,446 9,942 10,464 RECREATION SERVICES SUPERVISOR Mid-Management 1/2/2023 7,580 7,978 8,397 8,838 9,302 SECRETARY Miscellaneous 1/2/2023 5,619 5,914 6,225 6,552 6,896 SENIOR CIVIL ENGINEER Mid-Management 1/2/2023 10,630 11,188 11,775 12,393 13,044 SENIOR CODE ENFORCEMENT OFFICER Police 1/2/2023 8,162 8,590 9,041 9,516 10,016 SENIOR PLANNER Mid-Management 1/2/2023 9,366 9,858 10,376 10,921 11,494 SYSTEMS ADMINISTRATOR Mid-Management 1/2/2023 8,640 9,094 9,571 10,073 10,602 WAREHOUSE CLERK Miscellaneous 1/2/2023 4,989 5,251 5,527 5,817 6,122 WATER FIELD SERVICE SUPERVISOR Mid-Management 1/2/2023 8,769 9,229 9,713 10,223 10,760 WATER QUALITY & PROD SUP Mid-Management 1/2/2023 8,769 9,229 9,713 10,223 10,760 WATER QUALITY TECHNICIAN I Miscellaneous 1/2/2023 5,739 6,040 6,357 6,691 7,042 WATER QUALITY TECHNICIAN II Miscellaneous 1/2/2023 6,600 6,947 7,312 7,696 8,100 WATER SYSTEM & CONSERVATION MANAGER Mid-Management 1/2/2023 9,226 9,710 10,220 10,757 11,322 WATER SYSTEMS MANAGER Mid-Management 1/2/2023 10,085 10,614 11,171 11,757 12,374 WATER SYSTEMS OPERATOR I Miscellaneous 1/2/2023 5,855 6,162 6,485 6,825 7,183 WATER SYSTEMS OPERATOR II Miscellaneous 1/2/2023 6,695 7,046 7,416 7,805 8,215

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:May 23, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Matthew Lee, P.E., Public Works Director
SUBJECT: Consider Adoption of a Resolution Authorizing the City Manager to Execute a Memorandum of Understanding and License Agreement With the City and County of San Francisco for the Huntington Avenue Bicycle and Pedestrian Improvement Project and Finding the Action is Exempt From CEQA
BACKGROUND:

Huntington Avenue is a major north-south collector road that connects the City of San Bruno with the Cities of South San Francisco and Millbrae. The roadway provides City residents with direct connections to the Shops at Tanforan, Centennial Way Trail, downtown San Bruno, the regional transit systems of Bay Area Rapid Transit (BART) and Caltrain, and the Belle Air and Fifth Addition neighborhoods. With these various connections the northern stretch of Huntington Avenue is one of the City’s most important connectors for pedestrian and cyclists. It is envisioned to be a Class IV bikeway, a protected bike lane that is physically separated from the vehicular travel lane, in the Walk N Bike Plan.

The roadway is currently configured as a 4-lane divided roadway with 2 lanes in both directions and a landscaped median. An approved capital improvement project, the Huntington Avenue Bicycle and Pedestrian Improvement Project, would construct a two-way Class IV bikeway by reconstructing the sidewalk and asphalt roadway along northbound Huntington Avenue. Staff regularly pursues grant opportunities as a means of maximizing the funding available to the City and have been able to successfully secure $914,000 from One Bay Area Grant (OBAG) and $1,401,000 from San Mateo County Transportation Authority (SMCTA) to be used towards implementing this project.

OBAG is a federal-aid transportation grant that requires compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (Uniform Act). Compliance with the Uniform Act requires that the City receive right of way certification from the California Department of Transportation (Caltrans). The purpose of right of way certification is to document that the property rights necessary for the project have been acquired. During this certification process for the OBAG grant for this project, it was determined that the City did not have the property rights necessary to construct the project despite Huntington Avenue being a public street within the City’s roadway network.

Prior to construction the Bay Area Rapid Transit (BART) transit station in San Bruno, Huntington Avenue between San Bruno Avenue and Sneath Lane was a two-lane roadway with a single lane in either direction. The roadway was reconfigured and widened to the 4-lane divided

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1 roadway configuration as part of the BART to San Francisco International Airport (SFO) Extension Project that was completed June 2003. As part of that project, BART entered into an agreement with the City in which their project was to acquire all the necessary property rights to construct the project and the property rights associated with the reconstructed Huntington Avenue were to be conveyed back to San Bruno upon project completion.

While that BART project condemned and acquired all the parcels necessary to reconstruct Huntington Avenue north of Herman Street, BART never acquired the property rights for Huntington Avenue between San Bruno Avenue to Herman Street. The City and County of San Francisco (CCSF) currently owns the real property identified as San Mateo County Assessor’s Parcel Numbers 093-340-060 and 093-340-020, which is also designated as Parcel No. 9 per the deed dated September 29, 1944. This Parcel No.9 runs the length of Huntington Avenue between San Bruno Avenue and Herman Street and is comprised of approximately the landscaped median, northbound travel lanes and sidewalk adjacent to the northbound travel lanes (See Attachment 2). Caltrans has indicated that to receive right of way certification on the Huntington Avenue Bicycle and Pedestrian Improvement Project, the City would need to acquire rights from CCSF for conveyance of San Mateo County Assessor’s parcel numbers 093-340- 060 and 093-340-020.

DISCUSSION:

CCSF has offered to convey Parcel No. 9 to the City through a sales transaction. As it would be infeasible to complete the sales transaction within the required grant delivery timeframe, Caltrans indicated that they would authorize the right of way certification if the City can obtain a license agreement with CCSF to construct the project improvements with the understanding that the property rights would be conveyed to the City at a later date. The license agreement provides for the City to continue to use and make improvements to Parcel No. 9 while the memorandum of understanding obligates the City to complete the sales transaction no later than two years after the effective date of that agreement. The license agreement has an application fee of $2,000 and recurring use fee of $200 per month. The recurring use fee would no longer be needed once the City acquires Parcel No. 9. Should the sales transaction not be completed within two years and provided CCSF is not solely responsible for the delay, the City would be liable for a holdover penalty payable to CCSF in the amount of $1,500 per month, increasing $100 per month, up to a maximum of $5,000 per month until the sales transaction is completed. The memorandum of understanding also identifies a General Plan Referral Fee of $4,629 required by CCSF.

As part of this process, the City performed an appraisal of Parcel No. 9 to determine the fair market value for that sales transaction. That appraisal was completed on March 27, 2023 and it was concluded to have a nominal value of $5,000 as the subject parcel could not feasibly be independently used for any economic purpose. Completion of the sales transaction would require that the City pay CCSF the fair market value for Parcel No. 9 along with any other fees such as transfer taxes or recording charges applicable to the conveyance of Parcel No. 9.

FISCAL IMPACT:

There will be a one-time fiscal impact to the General Fund of $2,000 for the application of a revocable license and a monthly fiscal impact of $200 per month until the City acquires Parcel No. 9. There is no fiscal impact at this time to enter into a memorandum of understanding with CCSF. If approved, the City would be bound by the payment terms of the agreement and

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1 memorandum of understanding. This would include property sales transaction for $5,000 plus a General Plan Referral Fee of $4,629, along with any other fees such as transfer taxes or recording charges applicable to the conveyance of Parcel No. 9, and possible holdover penalties of $1,500 to a maximum of $5,000 per month should the sales transaction not be completed within two years of the execution of the memorandum of understanding.

ENVIRONMENTAL IMPACT:

Staff believes the City Council’s action qualifies for exemptions from further California Environmental Quality Act analysis for the following reasons. First, it can be seen with certainty that there is no possibility that the license agreement and eventual property transfer would have a significant effect on the environment. (Pub. Res. Code Sec. 15061(b)(3).) Further, the bike lane project is exempt from CEQA pursuant to a Class 1 exemption for existing facilities, which includes existing highways, streets, and sidewalks, and alterations thereto such as the addition of bicycle facilities including bicycle lanes. (14 Cal. Code Regs. 15301 (c).) Based on the foregoing, staff recommends that the City Council find the action exempt from CEQA.

RECOMMENDATION:

Consider adoption of a resolution authorizing the City Manager to execute a revocable license agreement and enter a memorandum of understanding with the City and County of San Francisco for conveyance of San Mateo County Assessor’s parcel numbers 093-340-060 and 093-340-020, and finding the action exempt from CEQA.

ALTERNATIVES:

Do not authorize revocable license agreement and memorandum of understanding with CCSF. The City would forfeit the federal grant in the amount of $914,000 and would need to identify another funding source to complete the project.

ATTACHMENTS:

1. Resolution

2. Acquisition Exhibit

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RESOLUTION NO. 2023 - ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO

AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF

UNDERSTANDING AND LICENSE AGREEMENT WITH THE CITY AND COUNTY OF

SAN FRANCISCO FOR THE HUNTINGTON AVENUE BICYCLE AND PEDESTRIAN

IMPROVEMENT PROJECT AND FINDING THE ACTION IS EXEMPT FROM CEQA WHEREAS, the City of San Bruno (City) has an approved capital improvement project, The Huntington Avenue Bicycle and Pedestrian Improvement Project (Project), that would install a separated bicycle track and pedestrian improvements on Huntington Avenue; and WHEREAS, Huntington Avenue from Sneath Lane to San Bruno Avenue is a major north-south 4-lane collector street that was improved by the Bay Area Rapid Transit (BART) to San Francisco International Airport (SFO) Extension Project completed in 2003; and WHEREAS, the BART to SFO Extension Project, on behalf of the City of San Bruno, only acquired the segment of Huntington Avenue from Sneath Lane to Herman Street; and WHEREAS, the portion of Huntington Avenue from Herman Street to San Bruno Avenue where the Project improvements will be constructed is on real property owned by the City and County of San Francisco identified as San Mateo County Assessor’s Parcel Numbers 093-340-060 and 093-340-020 (Properties); and
WHEREAS, the City desires to acquire a license agreement for the Properties from the City and County of San Francisco in order to be able to construct the Project; and WHEREAS, the license agreement has a one-time cost of $2,000 and a monthly recurring cost of $200 per month; and
WHEREAS, the City desires to enter in a memorandum of understanding agreement committing the City to acquire, in fee at the appraised value of $5,000.00, the Properties from the City and County of San Francisco within 2 years to maintain the Project improvements in perpetuity; and
WHEREAS, the City the memorandum of understanding states that should the acquisition not be completed within two years and provided CCSF is not solely responsible for the delay, the City would be liable for a holdover penalty payable to CCSF in the amount of $1,500 per month, increasing $100 per month, up to a maximum of $5,000 per month until the sales transaction is completed; and
WHEREAS, the City Council’s action qualifies for exemptions from further California Environmental Quality Act analysis for the following reasons: First, it can be seen with certainty that there is no possibility that the license agreement and eventual property transfer would have a significant effect on the environment. (Pub. Res. Code Sec. 15061(b)(3);) Further, the bike lane project is exempt from CEQA pursuant to a Class 1 exemption for existing facilities, which includes existing highways, streets, and sidewalks, and alterations thereto such as the addition of bicycle facilities including bicycle lanes. (14 Cal. Code Regs. 15301 (c)) Based on the foregoing, staff recommends that the City Council find the action exempt from CEQA.

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2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Bruno hereby authorizes the City Manager to execute a memorandum of understanding and license agreement with the City and County of San Francisco for the Properties to construct and maintain the Project improvements and finds the action exempt from CEQA. ---oOo---
I hereby certify that foregoing Resolution No. 2023 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on ___________, 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:May 23, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Damian Sandholm, Acting Community Services Director SUBJECT: Consider Adoption of a Resolution:
• Finding Emergency Repairs Are Needed and Authorizing the City Manager to Execute a Contract With Bothman Construction in the Amount of $293,000 to Complete Diamond 3 Repairs at City Park; • Appropriating Funds in the Amount of $293,000 From the General Fund Capital Reserve Fund; and,
• Approving a Construction Contingency of $58,600
• Approving a Total Project Budget in the Amount Not to Exceed $351,600
• Determining the Project is Exempt Under the California Environmental Quality Act
BACKGROUND:

In late December 2022 and early January 2023, California began experiencing severe winter storms related to a series of atmospheric river systems causing record rainfall. This event brought high winds, substantial precipitation, flooding, and other safety hazards across San Mateo County and neighboring regions. These storms continued into April.

In response to this storm event, the City activated the Emergency Operations Center (EOC) on Monday, January 3, 2023, to redeploy City resources and personnel to perform essential functions and ensure public safety by working to protect infrastructure.

At approximately 5:30 p.m. on March 9, 2023, three Eucalyptus trees fell on the 3rd base line at Diamond 3 located in City Park. The backstop, 3rd base line fence and 3rd base dugout were severely damaged. The 3rd base bleachers have been structurally compromised and the infield light pole along 3rd base along with the lights have been damaged beyond repair.

The City met with a contractor, Bothman Construction, and received repair costs and timeframe to repair the damage at Diamond 3.

DISCUSSION:

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7 On April 27, 2023, The City received a bid of $293,000 to repair the damaged areas of Diamond 3 in City Park. The estimate includes repairs to the backstop, 3rd base line fence, 3rd base dugout, and 3rd base bleachers. The bid also includes updating the 1st base dugout and 1st base bleachers to match what is installed on the 3rd base line.

Under normal non-emergency conditions, this project would require public bidding. However, due to the condition of the field, the extent of repair necessary to make it safe, and the need to complete the repair in an appropriate timeframe for the scheduled use of the field, staff determined that the public interest and necessity demand the immediate expenditure of public money to repair the field to safeguard life and property. Deferring repair could result in serious injury to park visitors and prevents use of the field. The condition of the field constitutes an emergency requiring the City to waive the public bidding process to allow for immediate repair work.

This action is allowed under emergency authority San Bruno Municipal Code section

2.44.120(A) and the California Public Contract Code Section 20168, which authorizes the City Manager to take such action in an emergency. California State law and the Municipal Code requires that when the City Manager waives the bidding requirements due to an emergency, the City Council may ratify the action by a 4/5th vote, if the City Council finds that the emergency will not permit a delay resulting from a competitive solicitation for bids, and the action is necessary to respond to the emergency.

Bothman Construction is the contractor utilized to make the repair as they are ready to perform the work once authorized. To complete the repair, City Council authorization is needed to both authorize and appropriate additional funding to perform the work.

If authorized by the City Council, repairs are expected to be completed by the end of June 2023.

FISCAL IMPACT:

As of May 17, 2023, the General Fund Capital Reserve Fund’s balance is $12,377,942.08. This amount is sufficient to fund the estimated total project cost and allocation of approximately $351,600 which includes construction and construction contingency.

ENVIRONMENTAL IMPACT:

This project meets criteria set forth in State California Environmental Quality Act (CEQA) Guideline Section 15302 “Replacement or Reconstruction” since the project involves the replacement of existing facilities will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. This project has no potential to cause a significant effect on the environment and therefore also qualifies for a Categorical Exemption pursuant to CEQA Guidelines Section 15061 (b) (3).

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7 RECOMMENDATION:

Adopt a Resolution:
•Finding Emergency Repairs are Needed and Authorizing the City Manager to Execute a Contract With Bothman Construction in the Amount of $293,000 to Complete Diamond 3 Repairs at City Park;
•Appropriating Funds in the Amount of $293,000 From the General Fund Capital Reserve Fund; and,
•Approving a Construction Contingency of $58,600
•Approving a Total Project Budget in the Amount Not to Exceed $351,600 •Determining the Project is Exempt Under the California Environmental Quality Act ALTERNATIVES:

1. Do not repair the damage at Diamond 3.

2. Delay and defer repair of damage at Diamond 3.

ATTACHMENTS:

1. Resolution

2. Bid from Bothman Construction
DATE PREPARED:

May 17, 2023

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RESOLUTION NO. 2023 – XXX

ADOPT RESOLUTION FINDING EMEGENCY REPAIRS ARE NEEDED AND AUTHORIZING

THE CITY MANAGER EXECUTE A CONTRACT WITH BOTHMAN CONSTRUCTION IN THE AMOUNT OF $293,000 TO COMPLETE DIAMOND 3 REPAIRS AT CITY PARK; APPROPRAITING FUNDS IN THE AMOUNT OF $293,000 FROM THE GENERAL FUND

CAPITAL RESERVE FUND AND APPROVING A TOTAL PROJECT BUDGET IN THE AMOUNT NOT TO EXCEED $351,600
WHEREAS, the City of San Bruno desires to utilize the services of a well-qualified contractor to assist the City with repair services for the damage to Diamond 3; and WHEREAS, the recent winter storm caused significant damage of the backstop, 3rd base line fence, 3rd base dugout and 3rd base bleachers; and
WHEREAS, replacement of the damaged infrastructure on the 3rd base line of Diamond 3 would create a significant difference as compared to the 1st base line infrastructure, it became apparent that the 1st base line fence, 1st base dugout, and 1st base bleachers will also need to be replaced; and WHEREAS, due to the condition of the field, the extent of repair necessary to make it safe, and the need to complete the repair in an appropriate timeframe for the scheduled use of the field, immediate work is needed to repair the field to safeguard life and property. Deferring repair could result in serious injury to park visitors and prevents use of the field. The condition of the field constitutes an emergency requiring the City to waive the public bidding process to allow for immediate repair work; and WHEREAS, this action is allowed under emergency authority municipal code section 2.44.120(A) and California Public Contract Code Section 20168 which authorizes the City Manager to take such action in an emergency; and
WHEREAS, Public Contract Code Section 20168 states that in case of an emergency, the legislative body may pass a resolution by a four-fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property.

Upon adoption of the resolution, it may expend any sum required in the emergency without complying with this chapter. If notice for bids to let contracts will not be given, the legislative body shall comply with Chapter 2.5 (commencing with Section 22050); and
WHEREAS, Public Contract Code Section 20168 states that: (1) In the case of an emergency, a public agency, pursuant to a four-fifths vote of its governing body, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts; and (2) Before a governing body takes any action pursuant to paragraph (1), it shall make a finding, based on substantial evidence set forth in the minutes of its meeting, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency; and
NOW, THEREFORE, BE IT RESOLVED, that the San Bruno City Council hereby declares that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property; and

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AND BE IT FURTHER RESOLVED, that the San Bruno City Council hereby finds, based on substantial evidence presented at this meeting, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency; and AND BE IT FURTHER RESOLVED, that the San Bruno City Council hereby authorizes the City Manager to execute a construction contract with Bothman Construction in the amount of $293,000 to complete the repairs to Diamond 3 at City Park, appropriating $293,000 from the General Fund Capital Reserve Fund, and approving a total project budget in the amount of $351,600.

Dated: May 23, 2023
ATTEST:
___________________________________
Lupita Huerta, City Clerk
-oOo-
I, Lupita Huerta, 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 23rd day of May 2023 by the following vote:

AYES: COUNCILMEMBERS: ____________________________________ NOES: COUNCILMEMBERS: ____________________________________ ABSENT: COUNCILMEMBERS: ____________________________________

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DIR Registration Number: 1000000846

REVISED BID PROPOSAL
April 21, 2023

Mr. Dan Venezia
City of San Bruno
567 El Camino Real
San Bruno, CA 94066

PROJECT: San Bruno City Park - Strom Damage Repairs
ESTIMATE NO. E23-080

Dear Mr. Venezia:

Robert A. Bothman, Inc. proposes to furnish and install work for the above referenced project per the following scope. General overall scope is to remove damaged fencing, dugout benches, bleachers, and adjacent asphalt pathways. Reconstruction new fencing, backstop, dugouts benches, bleachers with asphalt pad, and re-grade infield fines area that will be disturbed by renovation work. Adjacent parking lot to be used intermittently for loading trucks of off-haul materials. Revised items are underlined.

Specific Inclusions:

Mobilization / General Conditions / Traffic Control:

1. Provide RAB project superintendent, project management, safety inspections, and scheduling

2. Provide equipment mobilization

3. Traffic control for access along Crystal Spring Road

4. Provide traffic engineered stamped traffic control plan for City approval

5. Provide site security temporary fence around perimeter of the project

6. Provide connection to existing water line to be used for construction water and dust control (excludes costs of water)

7. Job site clean-up of RAB scope of work items

8. Utility locating of existing utilities within project limit of work

Site Demolition:

1. Demolition and removal of asphalt along pathway to remove fence footings

2. Removal of existing chain link fence, gates, and footings from backstop to all of third baseline and dugout, including fence on slope between the field and Crystal Springs Road

3. Removal and disposal of two 3 row bleacher systems & foundations

4. Remove dugout player benches from both dugouts

5. Remove existing damaged light pole, footing to remain for potential future light pole replacement

6. Relocate existing trash receptacles from work area and replace when complete

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Earthwork / Base Rock / Asphalt Paving:

1. Provide grading for new and replaced asphalt paving along third baseline and for two new asphalt bleacher pads and extend new asphalt paving between third baseline and first baseline behind backstop

2. Fine grade to subgrade based on the following sections:

2.1. Asphalt Paving Pathway, including new pathway behind backstop, and New Bleacher Pads: Pedestrian 3” AC / 4” AB

3. Export excess soil from grading operation

4. Finish and compact subgrade for asphalt paving

5. Install 4” recycled class 2 aggregate base rock

6. Install 3” recycled asphalt

Miscellaneous Surfaces:

1. Upon completion of construction, fine grade existing infield fines to provide a smooth playing surface

Site Furnishings:

1. Furnish and install the following:

2. Two dugout player benches based on Patterson & Williams model # 1119-21G, 21’ long without Back, 2 x 10 Planks, Aluminum; Galvanized Steel Frame, in-ground footing

3. Four portable bleachers based on Patterson & Williams model #1171-315TRA-P 3 Rows x 15’, 15' Aluminum Frame Tip & Roll without Guardrails; Powder coated Frame: Black

4. New backstop wall padding on wood backboards on back portion only not side wings

Chain Link Fence & Gates:

1. Fence replacement is from backstop to all of third baseline, dugout, and fence line on slope between field and Crystal Springs Road

2. All fence 2” mesh material, posts, rails, and hardware to be galvanized

3. Supply and install 16’ tall, hooded backstop with 5 high, 2” x 12” PTDF planks painted green baseboards, to match the existing backstop design

4. Supply and install 10’ tall sideline fence with 2 high, 2” x 12” PTDF planks painted green baseboards, to match the existing fencing

5. Supply and install 8’ to 10’ tall fencing at dugout ends with 2 high, 2” x 12” PTDF planks painted green baseboards, to match the existing fencing

6. Install dugout roof rails without fence fabric to match existing dugouts

7. Install one 4’ wide single swing gate with pad lockable latch to match existing fence

8. Supply and install 6’ tall fence on slope to match existing fence, delete scope

Planting:

1. Provide turf repair that may be disturbed by construction access and activities

2. Amend on-site native soils with amendments and fertilizers within the top 6” of landscape planting areas.

2.1. Incorporate the following per 1,000 SF:

2.1.1. 6 CY Composted Recycled Organic Amendment

2.1.2. 20 Lbs. 6-20-20

2.1.3. 20 Lbs. Iron Sulfate

2.1.4. 20 Lbs. Soil Sulfur

3. Rototill and fine grade disturbed areas and conform to existing grades

4. Install ½” cut bluegrass / ryegrass or turf type fescue sod

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Specific Exclusions:

1. Anything not part of “Specific Inclusions” is excluded from this bid proposal.

2. Permit and encroachment fees

3. Utility company fees

4. Temporary facilities such as sanitary facilities & hand wash stations, and project signs

5. Tree protection measures for on-site trees

6. Cost of construction water or import off-site construction water

7. Removal of any hazardous materials including any contaminated soils, lime treated soils, asbestos, lead paints, or all other hazardous materials that may be found in transit buried pipelines, paint materials on buildings or any other structure of surface to be removed from the project.

8. Removal and disposal of trees, branches, and stumps

9. QSD storm water plan development, SMARTS data implementation, and QSP weekly inspections, monitoring, reporting, annual reporting, etc.

10. Dewatering for any part of this project including bad weather or excavation to a water table or any other reasons

Specific Conditions/Qualifications:

1. Prices based on current prevailing wages

2. Prices based on current union wages

3. RAB contract change order mark-up to be 15% on self-performed work and 7.5% on subcontractor work based on the labor and equipment rates listed below within this proposal

4. On-site water to be used for construction water and dust control, prices do not include any costs to import recycled water

5. This proposal is contingent upon our review of final and complete construction scope

6. No geotechnical report has been provided for this project

Pricing:

ITEM # DESCRIPTION QUANTITY TOTAL
1 Mobilization / Project Management /
Traffic Control / Utility Locating 1 LS $55,600.00
2 Demolition 1 LS $39,400.00
3 Earthwork 1 LS $17,600.00
4 Base Rock 1 LS $12,000.00
5 Asphalt Paving 1 LS $19,600.00
6 Regrade Infield 1 LS $8,400.00
7 Chain Link Fencing 1 LS $70,000.00
8 21' Player Benches 2 EA $4,600.00 $9,200.00
9 3 Row x 15' Aluminum Bleachers 4 EA $9,300.00 $37,200.00 10 Backstop Wall Padding 1 LS $13,000.00
11 Turf Repair from access 1 LS $11,000.00

GRAND TOTAL $ 293,000.00

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If you have any questions, please feel free to contact our office.

Submitted by: Accepted by:

Robert A. Bothman, Inc.

Company Name

By: By:

Randy C. Hall, Senior Project Estimator

Name & Title:

Date:

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Robert A. Bothman, Inc. (RAB) Standard Proposal Conditions Project: San Bruno City Park - Strom Damage Repairs
This proposal is based upon the following unless specifically noted to the contrary.

Standard Inclusions

1. All labor for our work only

2. All materials for our work only

3. All equipment for our work only

4. Traffic Control for RAB Work only
Standard Exclusions

1. Bonds, permits or permit fees (call for bond rate if applicable)

2. Liquidated damage penalties

3. Testing and/or inspection or related fees

4. Parking fees

5. Furnish of temporary power, water or access roadways

6. Temporary toilets

7. Protection from inclement weather

8. Protection of our completed work

9. SWPPP preparation or SWPP BMPs/erosion control measures, implementation, maintenance or removal

10. Additional costs due to unknown surface and subsurface conditions, including but not limited to, dewatering

11. Tree protection

12. Soil/aggregate sterilant

13. Over-excavation/soil stabilization

14. Rock drilling or pier casing

15. Rock excavation

16. Hazardous material handling

17. Overtime work
Standard Conditions

1. Pricing firm for 30 days

2. Pricing is based on acceptance of all bid items included in this proposal in their entirety. Pricing is subject to change upon acceptance of only select bid items without prior RAB approval.

3. If price is accepted (either by execution of proposal or receipt of contract/subcontract), RAB reserves the right to review and negotiate contract/subcontract for mutual acceptance.

4. RAB Proposal to be incorporated by reference into contract documents. In the event of any discrepancy, conflict, or ambiguity between or among the Contract Documents and this RAB proposal, the terms and conditions of this RAB proposal shall take precedence.

5. Sequence and timing of RAB work to be in accordance with mutually agreed upon schedule.

6. Pricing based on work being performed in one move-in(s) and continuous work operation for each move-in. Additional move-ins will be charged at $ 2,500.00 each.

7. It shall be the responsibility of the Owner/General Contractor to provide safe access for all RAB personnel, equipment and material to all areas of work.

8. It shall be the responsibility of the Owner/General Contractor to provide suitable staging and storage areas for RAB equipment and materials.

9. Should conditions be encountered in performance of RAB work which differ from those included in contract documents or ordinarily encountered and generally recognized as inherent in work of character provided in contract, an equitable adjustment and time extension will be made to cover the resulting cost.

10. Owner to provide on-site parking or pay for off-site parking for all RAB personnel.

11. Payments invoiced by the 25th of the month to be paid by the 25th of the following month.

LABOR TIME AND MATERIAL RATES EFFECTIVE THROUGH JUNE 30, 2024 AFTER JUNE 2024, RATES WILL INCREASE APPROXIMATELY $3.00 ON THE BASE RATE

LABOR CLASS REGULAR

HALF TIME

PREMIUM

TIME AND

ONE HALF
DOUBLE
TIME
Carpenter Foreman $ 144.11 $ 40.76 $ 184.86 $ 225.62 Carpenter $ 136.70 $ 37.05 $ 173.75 $ 210.80 Cement Mason Foreman $ 111.38 $ 32.15 $ 143.54 $ 175.69 Cement Mason $ 104.86 $ 28.89 $ 133.75 $ 162.64 Laborer Foreman $ 95.93 $ 26.61 $ 122.54 $ 149.15

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Laborer $ 93.08 $ 25.19 $ 118.27 $ 143.46 Operator Foreman $ 123.74 $ 37.72 $ 161.46 $ 199.19 Operator $ 118.46 $ 35.08 $ 153.54 $ 188.62 Site Superintendent $ 149.12 $ 43.26 $ 192.38 $ 235.64 General Superintendent $ 153.61 $ 52.37 $ 205.99 $ 258.36 Project Engineer $ 99.06 $ 38.71 $ 137.77 $ 176.48 Project Manager $ 167.25 $ 66.03 $ 233.29 $ 299.32

EQUIPMENT TIME AND MATERIAL RATES EFFECTIVE THROUGH JUNE 30, 2024

Equipment
Cost
Basis Rate
10- Wheeler HR $ 111.00
Backhoe HR $ 90.00
Auger Attachment DAY $ 289.00
Hi-Ram Attachment DAY $ 633.00
Bobcat HR $ 51.00
Auger Attachment DAY $ 289.00
Hi-Ram Attachment DAY $ 465.00
Compressor W/Hammer DAY $ 265.00
Dozer (D-4) HR $ 78.00
Dozer Large (D-6) HR $ 116.00
End Dump HR $ 128.00
Excavator HR $ 176.00
Compaction Wheel
Attachment DAY $ 753.00
Hi-Ram Attachment DAY $ 937.00
Extruded Curb Machine DAY $ 1,053.00
Flat Bed HR $ 128.00
Forklift HR $ 56.00
Forklift - Gradall HR $ 86.00
High Side End Dump HR $ 128.00
Loader HR $ 133.00
Mini-Excavator HR $ 68.00
Motor Grader JD HR $ 124.00
Motor Grader CAT 140M HR $ 165.00
Pick-up Truck HR $ 26.00
Riding Concrete Trowel DAY $ 275.00
Roller-36 HR $ 58.00
Roller-66 HR $ 69.00
Roller-84 HR $ 84.00
Scraper 613 HR $ 166.00
Scraper 623 HR $ 258.00

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Sheepsfoot 66" HR $ 88.00
Sheepsfoot Compactor 815 HR $ 171.00
Soff-Cut Saw DAY $ 305.00
Tractor HR $ 71.00
Material Conveyor DAY $ 473.00
Rotovator DAY $ 473.00
Top Maker Turf Pulverizer DAY $ 2,153.00
Transport DAY $ 1,225.00
Trencher HR $ 58.00
Walk Behind Concrete Trowel DAY $ 150.00
Water Truck (4000 Gallon) HR $ 111.00
Water Truck (2500 Gallon) HR $ 101.00

The above rates do not include General Liability Insurance. General Liability Insurance will be added to the Gross Billing at a rate of $5.80/$1,000.00. All equipment rentals subject to a 4 -hour minimum unless otherwise noted. Rentals subject to RAB standard terms and conditions. All T&M (labor, equipment & materials) work will be marked up 15% for overhead and profit. Customer to provide safe workplace for the equipment ordered and supplied. Attachments are subject to an 8-hour minimum. Transport cost required for the movement of all equipment not currently on site.

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:May 23, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Bobby Magee, Interim Finance Director
SUBJECT: Consider Adoption of a Resolution Accepting the City’s Annual Comprehensive Financial Report, the Measure A and W Fund Reports, and the Single Audit Report of Federal Awards for the Fiscal Year Ended June 30, 2022
BACKGROUND:

The City’s independent auditor, Badawi & Associates, completed the audit of the City’s financial statements and provided the auditor’s reports for the fiscal year ended June 30, 2022. 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, 2022 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 W Funds for Local Transportation Purposes

4. Single Audit Report of Federal Awards

5. Letter to Governance
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.

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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.

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.

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.

DISCUSSION:

Badawi & Associates completed audits of the City’s financial statements, Measure A, and Measure W sales tax special revenue. Badawi & Associates found the general-purpose financial statements present fairly, in all material ways, the City’s financial position as of June 30, 2022 (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, 2022 are as follows:

General Fund
At the end of the fiscal year, total fund balance increased by $11.2 million to $46.6 million. The increase was mainly attributed to the General Fund revenue overage against expenditures of about $9.9 million and about $1.3 million in interfund transfer in.

General Fund revenues totaled $63.4 million in FY 2021-22, realizing an overall net of $7.2 million more than the previous fiscal year. State motor vehicle in-lieu tax was the biggest contributor of the increase by $4.5 million. The primary reason for the increase in state motor vehicle in-lieu tax was the County's receipt of reimbursement for the shortfall in in-lieu vehicle license fees for the fiscal years 2020-21 and 2021-22. Sales tax contributed to the increase in revenue by $3.8 million. The increase in Bradley-Burns local sales and use tax was mainly driven by the City’s engagement in a Revenue Participation Agreement with a major taxpayer in October 2020, resulting in the reporting of a complete year's sales tax revenue associated with the agreement in the current fiscal year. Measure G sales tax, which was approved by the voters in November 3, 2019 and became effective April 1, 2020, generated revenues of $4 million. The gradual relaxation of COVID-19 restrictions fueled the expansion of both leisure and business travel, resulting increase in transient occupancy taxes by $1.2 million, or 93.1%. Property taxes, increased by $1.9 million, or 15.17%. The increase of property tax corresponds directly with the rise in property assessments within San Mateo County. There was a decrease in other miscellaneous revenue by $3.4 million primarily due to previous one-time-only community benefit fees received from development activities.

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Compared to FY2020-21, General Fund expenditures increased by $5.3 million. The expense increase primarily stems from more funding allocated toward public safety and capital projects.

These areas have received more funding to enhance community well-being and infrastructure development. The increase in expenses aligns with the rise in revenue, attributed to the steady reopening of community activities after the COVID-19 pandemic. Overall expenditures were $1.3 million below the final budget. The savings were primarily contributed by the Community and Economic Development and Community Services Departments, as a result of salary savings and a reduced need for contractual services compared to initial projections.

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, 2022 are listed in the table below. The General Fund Reserve, Emergency Disaster Reserve Fund, and Capital Improvement /One-Time Initiative Reserve Fund balances were slightly below the target. The General Fund Contingency Fund was above the policy targets when actual revenue received exceeded initial expectations.

General Fund Reserves and Balances Reserve Policy
Target
FY2021-22
Actual Fund
Balance
1 General Fund Reserve
25% of annual
budgeted
expenditures (or
$13.7 Million)
$12.3 Million
2 General Fund Contingency Fund $1.5 Million $4.2 Million 3 Emergency Disaster Reserve Fund $3.0 Million $2.8 Million 4 Capital Improvement/One-Time Initiative
Reserve $5.0 Million Goal $4.6 Million
Sub-Total – General Fund Reserves $22.1 Million $23.9 Million 5 General Fund Equipment Reserve $0 $3.8 Million
6 Measure G District Sales Tax $0 $3.4 Million
Total $22.1 Million $34.6 Million
Enterprise Funds
Water Fund net position increased by $4.9 million to $70.2 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 future years. A five-year rate plan was established and provides for annual 5% rate increases through June 30, 2022.

Stormwater Fund net position increased by $0.4 million to $5.4 million primarily due to a transfer in from the American Rescue Plan Act fund to support operations. The long-range financial

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forecast, without any additional dedicated revenue to support the enterprise, is projected to yield a negative fund balance beginning in FY2022-23 with a negative fund balance each year thereafter. The remaining stormwater system capital improvement projects are currently unfunded 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 the voters, and the City began exploring alternative options in 2021-22 to address needed stormwater system improvements. A path to alternative funding options has not been identified as of yet, and the City continues to explore options in FY2022-23.

CityNet Fund net position decreased by $0.8 million to $(18.7) million. This decline is primarily due to operating expenses exceeding operating revenues. CityNet Enterprise has continued to make efforts to cut expenditures, and total operating expenses were $0.5 million lower than the previous year. The enterprise’s financial deficit continued to grow and its borrowing from the General Fund has accumulated to $15.2 million.

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 $10.7M in FY2021-22, which was a $1.2 million increase 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 decreased from $102.5M in FY2020-21 to $68.2M in FY2021-22.

The table below lists the NPL for the Miscellaneous and Safety plans for fiscal years ending June 30, 2021 and 2022 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.

Net Pension Liability Miscellaneous Safety Total
June 30, 2021 $ 48,947,544 $ 53,531,797 $ 102,479,341 June 30, 2022 33,618,509 34,593,086 68,211,595
Change – Increase (Decrease) $ (15,329,035) $ (18,938,711) $ (34,267,746) Measure A and Measure W Funds Report
Badawi & 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, 2022.

The Measure A fund has $0.9M of assets at June 30, 2022. Total revenues of $1.6M were received in FY2022, and $1.8M 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.

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The Measure W fund has $0.9M of assets at June 30, 2022. Total revenue of $0.6M was received in FY2022 and $0.2M was spent on street rehabilitation projects.

FISCAL IMPACT:

The acceptance of the City’s ACFR and other financial statements has no fiscal impact on the City. However, the reports are necessary in order to allow for City Council oversight of the financial condition of the City. Failing to prepare and accept such reports could jeopardize the City’s credit rating and its ability to obtain grants and debt financing in the future.

ALTERNATIVES:

No action is being requested beyond receipt of the various reports, consequently, no alternatives are offered.

RECOMMENDATION:

Accept, by motion, the City’s Comprehensive Annual Financial Report, the Measure A and Measure W Fund Reports on compliance, and the Single Audit Report of Federal Awards for the fiscal year ended June 30, 2022.

DISTRIBUTION:

None
ATTACHMENTS:

1. Resolution

2. Comprehensive Annual Financial Report for Fiscal Year Ending on June 30, 2022

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. Single Audit Report of Federal Awards

6. Letter to Governance

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RESOLUTION NO. 2023 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO ACCEPTING THE

COMPREHENSIVE ANNUAL FINANCIAL REPORT AND REPORT ON MEASURE A AND MEASURE W FUNDS [AND SINGLE AUDIT OF FEDERAL AWARDS] FOR THE FISCAL YEAR ENDED JUNE 30, 2022
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 Badawi & 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, 2022; 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 Controller 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 Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022 has been reviewed by the City Council; and WHEREAS, the Measure A Funds, Report on Compliance with the Agreement for the Distribution of San Mateo County Measure A Funds for Local Transportation Purposes for the fiscal year ended June 30, 2022 has been reviewed by the City Council; and WHEREAS, the Measure W Funds, Report on Compliance with the Agreement for the Distribution of San Mateo County Measure W Funds for Local Transportation Purposes for the fiscal year ended June 30, 2022 has been reviewed by the City Council; and WHEREAS, the Single Audit Report of Federal Awards for the fiscal year ended June 30, 2022 has been reviewed by the City Council; and
WHEREAS, the Letter of Governance for the fiscal year ended June 30, 2022 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, 2022:

1. Annual Comprehensive 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

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2 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. Single Audit Report of Federal Awards

5. Letter to Governance
---oOo---
I hereby certify that foregoing Resolution No. 2023 -
was introduced and adopted by the San Bruno City Council at a regular meeting on May 23, 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

_________________________________
Lupita Huerta
City Clerk

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City of San Bruno, California
Annual Comprehensive Financial Report
For the fiscal year ended June 30, 2022
(with comparative totals for the Fiscal Year Ended June 30, 2021)

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CITY OF SAN BRUNO, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Prepared by:

Finance Department

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City of San Bruno
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents
Page

INTRODUCTORY SECTION
Letter of Transmittal ....................................................................................................................................................... i Organizational Chart ..................................................................................................................................................... x Directory of Officials .................................................................................................................................................... xi GFOA Certificate of Achievement ............................................................................................................................. xii

FINANCIAL SECTION
Independent Auditors’ Report ...................................................................................................................................... 1 Management’s Discussion and Analysis ................................................................................................................... 5 Basic Financial Statements
Government-Wide Financial Statements:

Statement of Net Position ..................................................................................................................................... 27 Statement of Activities ..................................................................................................... ..................................... 28 Fund Financial Statements:

Balance Sheet – Governmental Funds ........................................................................................... .................. 34 Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position .......................................................................................... ......................... 35 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ........................................................................................................ .............................. 36 Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balances of Governmental Funds to the Statement of Activities ................................................... 37 Statement of Net Position – Proprietary Funds .............................................................................. .............. 40 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds ............................ 42 Statement of Cash Flows – Proprietary Funds ................................................................................ ............... 44 Statement of Fiduciary Net Position – Fiduciary Funds ............................................................................... 48 Statement of Changes in Fiduciary Net Position – Fidu ciary Funds .......................................................... 49 Notes to Basic Financial Statements .......................................................................................................................... 53 Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund .......................................................................................... .................. 101 Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan .............. 102 Schedule of Pension Plan Contributions – Miscellaneou s Plan ................................................................. 104

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City of San Bruno
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION (Continued)
Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Plan ............................ 106 Schedule of Pension Plan Contributions – Safety Plan ........................................................................ .......... 108 Supplementary Information
General Fund Combining Balance Sheet ......................................................................................................... 114 General Fund Combining Schedule of Statem ent of Revenues, Expenditures, and Changes in Fund Balances .............................................................................................................. ..................................... 115 General Fund Combining Schedule of Revenues , Expenditures, and Changes in Fund Balance- Budget and Actual .......................................................................................................... ................................. 116 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Parks and Facilities Capital Improvement .............................................................. 118 Nonmajor Governmental Funds:

Combining Balance Sheet ...................................................................................................... ................................ 120 Combining Statement of Revenues, Expenditures and Chan ges in Fund Balances ..................................... 124 Statements of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ........................................................................................................... .................................... 128 Internal Service Funds:

Combining Statement of Net Position .......................................................................................... ....................... 146 Combining Statement of Revenues, Expenses and Changes in Net Position ................................................ 148 Combining Statement of Cash Flows ............................................................................................ ....................... 150

STATISTICAL SECTION
Net Position by Component .................................................................................................................................. 155 Changes in Net Position ...................................................................................................... .................................. 156 Fund Balances of Governmental Funds .......................................................................................... .................... 158 Changes in Fund Balance of Governmental Funds ................................................................................ ........... 159 Assessed Value and Estimated Actual Value of Taxable Pr operty ................................................................. 160 Direct and Overlapping Property Tax Rates ............... ....................................................................................... 161 Principal Property Taxpayers ................................................................................................. .............................. 162 Schedule of Top 40 Business License Taxpayers ............. ................................................................................... 163 Property Tax Levies and Collection ........................................................................................... .......................... 164 Ratios of Outstanding Debt by Type ........................................................................................... ........................ 165 Direct and Overlapping Governmental Activities Debt ..... .............................................................................. 166 Legal Debt Margin Information ................................................................................................ ............................ 167 Pledged Revenue Coverage ..................................................................................................... ............................. 168 Demographic and Economic Statistics .......................................................................................... ...................... 169

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City of San Bruno
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents
Page
STATISTICAL SECTION (Continued)
Principal Employers .......................................................................................................... ..................................... 170 Full Time Equivalent City Employees by Function/Program ......................................................................... 171 Operating Indicators by Function/Program ..................................................................................... ................. 172 Capital Asset Statistics by Function/Program ................................................................................. .................. 173

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Introductory Section

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iii

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x
vi

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vii

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viii

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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
x

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Directory of Officials
Elected Officials
Rico E. Medina Mayor
Linda Mason Vice Mayor
Marty Medina 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
Matthew Lee Public Works Director
Sandeep Krishnamurthy CityNet Services Director
Melissa Thurman City Clerk
xi

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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, 2021
Executive Director/CEO
xii

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Financial Section

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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Bruno
San Bruno, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the govern mental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Bruno (City), as of and for the year ended June 30, 2022, and the related notes to th e financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements pr esent fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Emphasis of Matter – CityNet Fund Going Concern
The accompanying financial statements have been prepared assuming that the CityNet Fund (CityNet) will continue as a going concern. As discussed in Note 12 to the financial statements, CityNet’s recurring losses from operations, deficit net position, and continual bo rrowing from the General Fund to pay its liabilities raise substantial doubt about its ability to continue as a going concern. Management’s evaluation of the events and conditions and management’s plans regarding these matters are also described in Note 12. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Our opinions are not modified with respect to this matter.

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

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Emphasis of Matter – Stormwater Fund Going Concern
The accompanying financial statements have been pr epared assuming that the Stormwater Fund will continue as a going concern. As discussed in Note 12 to the financial statements, the Stormwater Fund has had recurring losses from operations, and transfers in from the General Fund to maintain a positive unrestricted net position. This rais es substantial doubt about its abilit y to continue as a going concern.

Management’s evaluation of the events and conditions and management’s plans regarding these matters are also described in Note 12. The financial statemen ts do not include any adjustments that might result from the outcome of this uncertainty. Our opinions are not modified with respect to this matter.

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

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

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

In performing an audit in accordance with GAAS, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence rega rding the amounts and disclosures in the financial statements.
x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. 2 114 of 369

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

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x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the Unit ed States of America require that the management’s discussion and analysis, budgetary comparison schedu les for the General Fund, and the required pension schedules on pages 5-21 and 101–109 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s response s to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

The combining General Fund statem ents, combining and individual no nmajor fund statements, and the budgetary comparison schedules for the Parks and Facilities Capital Improvement Fund and nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining General Fund statements, 3 115 of 369

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

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combining and individual nonmajor fund statements, and the budgetary comparison schedules for the Parks and Facilities Capital Improvement Fund and nonmajor governmental funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

Report on Summarized Comparative Information
The prior year summarized comparative information has been derived from the City’s June 30, 2021 financial statements. The prior year financial statements of the City as of and for the year ended June 30, 2021, were audited by other auditors whose report dated December 21, 2021, expressed an unmodified opinion on those statements.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated April 26, 2023 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, cont racts, and grant agreements and other matters. The p u r p o s e o f t h a t r e p o r t i s s o l e l y t o d e s c r i b e t h e s cope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness o f i n t e r n a l c o n t r o l o v e r f i n a n c i a l r e p o r t i n g o r o n c o m p l i a n c e . T h a t r e p o r t i s a n i n t e g r a l p a r t o f a n a u d i t performed in accordance with Government Auditing St andards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
April 26, 2023
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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, 2022
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, 2022. The intent of this discussion and analysis 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 2021-22
Entity-wide:
x The City’s assets and deferred outflow of resources exceeded its liabilities and deferred inflow of resources at June 30, 2022 by $194.4 million (net position). The City’s net position increased $32.5 million, or 20.1%, from the previous fiscal year.
x The City’s governmental activities program and general revenues (including transfers) of $76.5 million exceeded expenses of $57.3 million by $19.2 million, increasing net position to $63.9 million. x The City’s business-type activities program revenues and general revenues (including transfers) from the four enterprise operations of $45.8 million were greater than expenses of $35.7 million by $10.1 million, increasing net position to $130.4 million.

Fund level:
x At the close of the fiscal year, the City’s governmental funds reported combined fund balances of $63.4 million, an increase of $5.2 million or 9.1% compared to the prior year. Of this amount, $15.3 million is non-spendable, $53.4 million is restricted, $26.0 million is assigned, and $(31.4) million is unassigned. x Revenues for governmental funds exceeded expenditures by $5.3 million. Tax revenue grew $8.7 million, or 24.5 %, from the prior year. Expenditures for governmental funds increased $17.9 million, or 32.8%, from the prior year mainly due to increased 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) gove rnment-wide financial 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 broad 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.

The Statement of Activities presents information 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 6 118 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
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 revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs thro ugh 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-type activities of the City include water, stormwater, wastewater, and cable television.

The government-wide financial statements can be found on pages 27-29 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 activi ties 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 fo r essentially the same functions reported as governmental activities in the government-wide financial 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 gover nmental 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 and Parks and Facilities Capital Improvement Fund, which are considered to be a major funds. Data from the other governmental funds are combined into a single, aggregated presentation.

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 major 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 34 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.

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 7 119 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
development, and facilities maintenance activities. Beca use these services predominantly benefit governmental rather than business-type functions, it has been includ ed 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 provide 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 proprietar y 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 40 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 December 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 48 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 53 of this report.

Required and Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary info rmation concerning the City’s progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on page 99 of this report.

The combining statements referred to earlier in conne ction 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 114 of this report.

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 $194.4 million at the close of fiscal year 2021-22. 8 120 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
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 re lated debt used to acquire those assets that are still outstanding. The City uses these capital assets ($139.0 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, $55.3 million, represents resources 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 $1 thousand. This amount may be used at the City’s discretion to meet ongoing obligations to citizens and creditors.

The City’s overall net position increased by $32.5 million, or 20.1%, from the prior fiscal year. Key elements of these changes are as follows:
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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
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CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Governmental Activities
Governmental activities increased the City’s net position by $19.2 million, with a total net position of $63.9 million at the end of the fiscal year. Overall, revenues increased by $12.3 million to $75.9 million over the prior year. Robust sales tax mitigated decreases in other ta x categories such as franch ise tax revenues. Sales tax increased $3.8 million, or 21.2%, which included a significant additional revenues from the passage of Measure G. Measure G was approved by the voters on November 3, 2019 and became effective on April 1, 2020. Sales tax revenue also increased due to improved business activities as compared to the start of the Covid-19 pandemic. In addition, the City entered into a Revenue Participatio n Agreement with a major ta xpayer in October 2020, resulting in a full year of sales tax revenue associated with the agreement being reported in the current fiscal year.

The City’s second largest tax category, property taxes, increased by $1.9 million, or 15.17%. The increase of property tax aligns with the increase in the San Mateo County’s property assessments. State revenues from motor vehicle in-lieu tax increased by $4.5 million, or 140.4%. The increase in state motor vehicle in-lieu tax was primarily due to the County receiving reimbursement for the in-lieu vehicle license fee shortfall for fiscal years 2020-21 and 2021-22. Transient occupancy taxes increased $1.2 million, or 93.1%, as leisure and business travel continued to expand as a result of the decrease in restrictions due to the ongoing COVID-19 pandemic. Operating grants and contributions increased $2.9 million, or 94.6% , primarily due to receipt of federal funds related to COVID-19 and funding from the San Bruno Community Foundation for the City’s new Recreation and Aquatic Center project. Expenses decreased by $0.9 million, or 1.6%, as the City cut expenditures in general government related to the pandemic.
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CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
The cost of all governmental activities in 2021-22 was $57.3 million. As shown on the statement of activities, the amount that taxpayers paid for these activities with ge neral revenues was $30.4 million due to some of the costs being paid by those specifically benefiting from the programs ($14.2 million), and by other governments and organizations subsidizing programs with grants an d contributions for operations and capital improvement ($16.2 million).

The City’s programs included 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 shows 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:
12 124 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Business-type Activities
The City’s business-type activities include water, st ormwater, wastewater, and C ityNet. While water and wastewater are true enterprise funds that pay for their services through user 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 $130.4 million.

The total increase in net position for business-type activities was $10.1 million. The water and wastewater Funds directly contributed to the growth. Charges for servi ces of $16.8 million and $19.4 million covered expenses of $11.6 million and $13.0 million, respectively. Stormwater charges for services of $1 .0 million continued to be insufficient to support expenses of $1.6 million. CityNet charges for services of $8.6 million also continued to be insufficient to support expenses of $9 .4 million. Total resources available during the year to finance business- type activities were $47.6 million consisting of program revenues, investment income, and transfers in. Total business-type activities expenses during the year were $37.6 million including operating expenses, debt service expenses, and transfers out.

Operating revenues and expenses are depicted graphically as follows:
$0.0
$5.0
$10.0
$15.0
$20.0
Water Stormwater Wastewater CityNet
Functions & Programs
Program Revenues Expenses
13 125 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Each program’s net cost (total cost less revenues generated by the activities) is presented 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.

As of June 30, 2022 governmental funds reported combined fund balances of $63.4 million, an increase of $5.3 million, or 9%, over the prior year. Of this amount, $ 15.3 million is non-spendable as the funds were advanced to CityNet services for the Shelter Creek Fiber to the Ho me project in the amount of $0.1 million, and for the negative cash balance in the fund in the amount of $15.2 million. The City is developing a plan to reduce the net operating loss and repay the General Fund. The remainder of the fund balance is either restricted, assigned, or unassigned to indicate that it is (1) restricted for particular purposes, $53.4 million; or (2) assigned for particular purposes, $26.0 million; or (3) unassigned and available at the City’s discretion, $(31.4) million.

Analysis of Major Funds
The General Fund is the main operating fund of the C ity. 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 $63.4 million, which is an increase of $7.2 million, or

12.8%, from the prior year. This is primarily due to growth from motor vehicle in-lieu tax sales tax, property tax, and intergovernmental revenue. The City received federal American Rescue Plan Act funding of $9.9 million in fiscal year 2021-22 to support the response to and re covery from the COVID-19 public health emergency.

Expenditures totaled $53.4 million, which increased by $5.3 million, or 10.9%, from the prior year. The increase is primarily attributed to additional funding allocated to public safety and the acquisition of vehicular equipment.

At the end of the fiscal year, total fund balance increased by $11.2 million to $46.6 million.

The Parks and Facilities Capital Improvement Capital Projects Fund, which provides for the improvement of the City’s parks and facilities, increased by $9.5 million. The primary reason for the increase in revenues was due to the receipt of community benefit funds from San Bruno Community Foundation in the amount of $10.2 million.

Expenditures increased in the amount of $13.8 million. The entire portion of the increased expenditures was related to capital outlay activities. Capital outlay expe nditures were primarily associated with the design and construction of the City’s new Recreation and Aquatics Cent er. The net change in fund balance for fiscal year was a decrease of $3.0 million, netting to an ending fund balance of $(.2 million). 14 126 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Proprietary Funds
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 $4.9 million to $70.2 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 future 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 or FY 2022-23.

Wastewater Fund net position increased by $5.4 million to $71.8 million as a result of planned rate increases approved by City Council in 2017, which will be u sed to implement a number of critical infrastructure improvement projects in future years. A five-year rate plan was established and provides for annual 5% rate increases through June 30, 2022. To lessen the financia l burden on residents in the era of COVID-19, the City Council decided not to increase the wastewater rate in FY 2021-22 or FY 2022-23.

Stormwater Fund net position increased by $0.4 million to $5.4 million primarily due to a transfer in from the American Rescue Plan Act fund. The long-range financial forecast, without any additional dedicated revenue to support the enterprise, is projected to yield a negative fund balance beginning in FY 2022-23 with a negative fund balance each year thereafter. The remaining 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 the voters, and the City began exploring alternative options in 2021-22 to address needed stormwater system improvements. A path to alternative funding options has not been identified as of yet, and the City continues to explore options in 2022-23.

CityNet Fund net position decreased by $0.8 million to $(18.7) million. This decline is primarily due to operating expenses exceeding operating revenues. Depreciation expense of $0.3 million and the impact of reflecting the GASB 68 pension expense in the fund of $0.1 million al so 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 implemented vendor cost cont rols, 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 101, as Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual shows the initial adopted an d 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. 15 127 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Original Budget Compared to Final Budget
The most significant differences between original and final revenue estimates were as follows:

Intergovernmental revenue estimates increased by $0.8 m illion, or 10.1%. The increase was the adjustment for the County receiving the FY 2021-22 VLF disbursement from the State. The City had expected to receive $1.16 million of the disbursement.

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

Community and Economic Development appropriations had combined increases of $0.4 million, or 14.6%. The rise can be attributed to the City’s contracting with consultants to support permit technician services, and encumbrances carried over from the prior fiscal year. Capital outlay expenses increased by $0.35 million, primarily for purchasing vehicles and providing related equipment outfitting.

Final Budget Compared to Actual Results
The most significant differences between estimated and actual revenues were as follows:

Tax revenues realized increases in sales tax, property tax, and transient occupancy tax. The City entered into a Revenue Participation Agreement with a major taxpayer in October 2020 and began recording the full year of sales tax revenue associated with the agreement. Interg overnmental revenue received was $1.3 million, which was 13.7% over budget, which was primarily due to the Ci ty receiving larger than expected VLF disbursement. 16 128 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
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, char ges for services came in to $1.4 million, or 58.7%, higher than previously estimated. This increase can be attributed to the gradual rise in community activities during the post COVID-19 pandemic period. Fines and forfeitures were $0.4 million, or 41.6%, below budget primarily due to a reduction in police and parking fine collections.

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

The challenges that arose from the start of the COVID-19 pandemic continued into FY 2021-22. 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 lowest responsible levels to allow for uninterrupted service delivery. As a result, total expenditures were $53.4 million, which was $1.3 million, or 2.0% under budget. Streets Division expenditures were $0.4 million, or 19.5%, under budget due to salary savings from vacant positions, savings in streetlight and traffic signal supplies, other operating supplies, and contractual services. Community and Economic Development Department expenditures were $0.8 million, or 23.7%, under budget due to salary savings from vacant positions and unspent professional services funds which will be carried over to next fiscal year.

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 eligible securities as defined by the California Government Code, and further authorized and guided 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. As of June 30, 2022, net capital assets of the governmental activities totaled $82.5 million.

Depreciation on capital assets is recognized in the go vernment-wide financial statements. During the 2021-22 fiscal year, net capital assets for governmental activities increased by $12.9 million due to increase in capital purchases. For business-type activities, capital assets d ecreased by $2.5 million to $102.6 million due to aging infrastructure in which the depreciation rate on existing as sets exceeds the rate of capital purchases incurred in 2021-22 fiscal year. Detailed information about capital assets can be found in Note 4 to the financial statements. 17 129 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Debt Administration
The City and Successor Agency to the Former Redevelopment Agency debt obligations are in the form of capital leases, a pension obligation bond, loans payable to South San Francisco, and revenue bonds. The following table is a summary of the City’s outstanding debt:

Additional information about long-term debt can be found in Note 5 to the financial statements. 18 130 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Economic Factors and Next Year’s Budgets and Rates
The City Council and management considered the followi ng economic factors in preparation of the fiscal year 2022-23 budget:

General Fund revenues
x Total General Fund revenues of $50.9 million projecte d for FY 2022-23 are flat compared to the FY2021- 22 Amended Budget amounts.
x 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 receives approximately $0.125 cents from every property tax dollar paid in San Bruno. An additional $0.02 cents of property tax revenue have come to the City in recent years from the Educational Revenue Augmentation Fund, commonly known as ERAF, but this is not a consistent or reliable 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, sch ool districts, and special districts. The housing industry and home sales boomed when more people worked from home because of the Covid-19 pandemic and related stay-at-home directives. Secured property tax revenue was expected to increase by more than 4% over the prior fiscal year budget primarily due to higher property reassessment. x Sales Tax of 9.75% is assessed on every taxable sale in San Bruno. Of the 9.75%, the City receives 1.5%, or approximately 15% of the total tax. For FY 2022-23 total Sales Tax revenue is anticipated to increase by 1% from the prior year’s receipts. The sale of Tanforan Mall will cause reduced sales in the area, although the loss may be partially offset by other businesses and higher prices due to inflation. The California Department of Tax and Fee Administration (CDTFA ) is currently reviewing its distribution of Bradley Burns Sales and Use Tax to the City. Staff will adjust the forecast of sales tax revenue after CDTFA informs the City of its final decision.
x 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. Occupancy in hotels declined by more than 75% shortly after the start of the Covid-19 pandemic. The hospitality industry wi thin City limits continues to recover, although it has not reached pre-pandemic levels. Staff is projecting continued recovery and an increase of a 60% in TOT revenue in FY 2022-23 to approximately $2.8 million.
x Business license tax is an annual tax based on prior y ear gross receipts. The Covid-19 pandemic devastated many sectors of San Bruno’s business community, and many businesses reported lower gross receipts for FY 2021-22. For the next year, businesses will continue to face challenges with expected higher than normal inflation, disrupted supply chains, and tight labor markets. Therefore, staff reduced estimated business license tax revenue by 7%.
x Departmental Revenue - Total departmental revenues are projected to decrease by 6% compared to the FY 2021-22 budget. The Building Division of the Community and Economic Development Department revised its revenue forecast per project pipeline. Some reve nues previously anticipated for FY 2021-22 will be anticipated to be received in FY 2022-23.
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CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
General Fund Expenditures
x 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, totaling approx imately 43.0% of all General Fund expenditures. The total budget for regular, part-time, and overtime salaries across all General Fund departments is $24.0 million. x CalPERS Retirement - Employee retirement benefits total $10.7 million, or 19.2% of General Fund expenditures. This amount represents an increase of approximately $1.2 million compared to the FY 2021-22 budget. The City continues to experience significant impacts from increasing costs for retirement benefits through the CalPERS system.
x Employee Insurance Premiums - Employee insurance bene fits (medical, life and long-term disability) are provided through the Teamster’s Health and Welfare Trust, and amount to $5.1 million in FY 2022-23. The Trust notifies the City of the projected premium increase at the end of each calendar year.

Enterprise Funds
x The City completed a comprehensive review of operating and capital needs in the Water and Wastewater Enterprises, and established a new multi-year utility rate schedule in April 2017. The rate analysis included an evaluation of all operational costs and the planned schedule and costs for delivery of capital improvement projects necessary to replace and rehabilitate 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 increase through FY 2021-22. To lessen the financial burden on residents in the era of COVID-19, the City Council decided not to increase water and wastewater rates in FY 2021-22 or FY 2022-23.
x The Stormwater Enterprise is responsible for maintaining the stormwater conveyance system as well as adhering to the requirements outlined in the National Pollutant Discharge Elimination System. Stormwater fees are collected through the County property tax, and a minimum of $46.16 per assessor parcel number is assessed for most properties in San Bruno. These fees have been in place since 1994 and are inadequate to fund ongoing operations and necessary equipment and capital investments to meet federal requirements.

The City has not been able to collect sufficient revenue to replace and repair portions of the aging stormwater system. The City held a mail ballot property-owner election to increase the Storm Drainage and Flood Protection Fee on June 15, 2021. The initiative was rejected by the voters, and the City is exploring alternative options to address needed stormwater system improvements in FY 2022-23. x CityNet Fund – CityNet has continued making improvem ents in FY 2021-22 to control expenses and focus on higher margin business. In its long-range financial forecast, the negative fund balance is expected to grow to at least $20.0 million in FY 2023-24 and is not like ly to decrease in subsequent years. With an imminent plan to continue the Enterprise’s fiber upgrade with Council approval and launch a new streaming TV product, CityNet is positioning itself to implement technologi cal improvements to serve existing customers, attract new customers, and potentially become financially solvent in future years.

Capital Improvement Program and Debt Service
x The FY 2022-23 CIP identifies 93 projects organized in 10 categories. $283.2 million in capital investment is programmed through the 5-year CI P to assure rehabilitation, replacement, and improvement of City facilities and infrastructure. $180.7 million of this amount is the expected cost of scheduled improvements to the City’s water and wastewater systems. A total of $6.0 million is set-aside to meet debt service obligations. 20 132 of 369

CITY OF SAN BRUNO, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Contacting the City’s Financial Management
This financial report is designed to provide our citizens , taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability 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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BASIC

FINANCIAL STATEMENTS
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24 136 of 369

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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City of San Bruno
Statement of Net Position
June 30, 2022 (with comparative totals for June 30, 2021) Governmental Business-type
Activities Activities 2022 2021
ASSETS
Current assets:

Cash and investments 62,602,738 $ 94,768,04 0$ 157,370,778$ 133,272,753$ Cash and investments with fiscal agent 141,811 1,918,591 2,060,402 4,264,819 Receivables:

Taxes 5,443,645 - 5,443,645 6,446,933
Accounts - 5,886,89 6 5,886,896 6,056,845
Interest 76,483 - 76,483 139,50 1
Loans 749,809 - 749,809 775,862
Other 6,064,56 9 - 6,064,569 2,331,907
Prepaid costs - 47,540 47,540 -
Internal balances 13,606,70 0 (13,606,700) --
Total current assets 88,685,755 89,014,367 177,700,122 153,288,620 Noncurrent assets:

Other assets 3,177,90 0 - 3,177,900 -
Capital assets:

Nondepreciable 25,422,456 10,303,337 35,725,793 25,525,199 Depreciable 137,085,399 171,282,140 308,367,539 299,374,625 Less accumulated depreciation (80,023,669) (78,995,345) (159,019,014) (150,308,581) Total capital assets 82,484,186 102,590,132 185,074,318 174,591,243 Total noncurrent assets 85,662,086 102,590,132 188,252,218 174,591,243 Total assets 174,347,841 191,604,499 365,952,340 327,879,863

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 80,977 80,977 88,339
Deferred pension related items 17,412,205 1,978,968 19,391,173 18,838,781 Total deferred outflows of resources 17,412,205 2,059,945 19,472,150 18,927,120

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 11,815,002 1,976,590 13,791,592 8,613,106 Interest payable 41,966 830,232 872,198 906,434
Deposits payable 5,563,455 - 5,563,455 6,997,390
Unearned revenue 6,507,231 677,547 7,184,778 1,566,275
Other liabilities 440,500 - 440,500 -
Compensated absences - current 522,514 102,507 625,021 606,975 Claims and judgements - current 1,545,000 - 1,545,000 1,072,204 Long-term debt - current portion 1,446,246 2,039,962 3,486,208 3,459,868 Total current liabilities 27,881,914 5,626,838 33,508,752 23,222,252 Noncurrent liabilities:

Compensated absences 2,237,097 443,192 2,680,289 2,844,853 Claims and judgements 3,483,000 - 3,483,000 4,339,796
Net pension liability 57,060,538 11,151,057 68,211,595 102,479,341 Long-term debt 5,635,254 42,172,340 47,807,594 49,693,803 Total noncurrent liabilities 68,415,889 53,766,589 122,182,478 159,357,793 Total liabilities 96,297,803 59,393,427 155,691,230 182,580,045

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 31,522,751 3,860,417 35,383,168 2,389,141 Total deferred inflows of resources 31,522,751 3,860,417 35,383,168 2,389,141

NET POSITION
Net investment in capital assets 80,545,096 58,458,807 139,003,903 127,588,803 Restricted for:

Capital projects 42,250,643 1,918,591 44,169,234 11,738,482 Debt service 196 -1 96 5
Measure A 904,475 - 904,475 1,106,23 0
Community services 10,271,214 - 10,271,214 14,060,970
Total restricted 53,426,528 1,918,591 55,345,119 26,905,687 Unrestricted (70,032,132) 70,033,202 1,070 7,343,307 Total net position 63,939,492$ 130,410,600$ 194,350,092$ 161,837,797$ Totals
See accompanying Notes to Basic Financial Statements.
27 139 of 369

City of San Bruno
Statement of Activities
For the year ended June 30, 2022 (with comparative totals for June 30, 2021) Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental activities:

General government 6,413,721 $ 5,362,419 $ 155,207 $ 16,176 $ 5,533,802 $ Public safety 32,410,681 3,290,386 1,152,558 - 4,442,944 Public works 1,618,481 574,911 104,198 - 679,109
Streets 4,949,093 18,000 3,946,894 134,540 4,099,434 Parks and recreation 6,574,959 1,271,240 321,423 10,192,085 11,784,748 Library 2,156,600 6,756 3 7,638 - 44,394
Community and economic development 2,857,883 3,653,585 163,559 - 3,817,144 Interest expense 296,821 - - - -
Total governmental activities 57,278,239 14,177,297 5,881,477 10,342,801 30,401,575 Business-type Activities:

Water 11,643,075 16,774,287 - - 16,774,287 Stormwater 1,641,787 1,054,326 - - 1,054,326 Wastewater 12,989,348 19,378,136 - - 19,378,136 Cable television 9,440,513 8,566,131 - - 8,566,131 Total business-type activities 35,714,723 45,772,880 - - 45,772,880 Total primary government 92,992,962$ 59,950,177$ 5,881,477$ 10,342,801$ 76,174,455$ General Revenues:

Taxes:

Property taxes, levied for general purpose
Transient occupancy tax
Franchise tax
Sales tax, including subvention
Cardroom taxes
Other taxes
Total taxes
Intergovernmental, unrestricted
State motor vehicle in-lieu tax, including subvention
Use of money and property
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
28 140 of 369

Governmental Business-Type
Activities Activities 2022 2021
(879,919)$ -$ (879,919)$ 2,453,927$
(27,967,737) - (27,967,737) (29,273,951)
(939,372) - (939,372) (2,322,619)
(849,659) - (849,659) (1,425,594)
5,209,789 - 5,209,789 (2,119,046)
(2,112,206) - (2,112,206) (2,248,770)
959,261 - 959,261 269,865
(296,821) - (296,821) (324,944)
(26,876,664) - (26,876,664) (34,991,132)
- 5,131,212 5,131,212 5,080,055
- (587,461) (587,461) (720,352)
- 6,388,788 6,388,788 5,591,546
- (874,382) (874,382) (910,668)
- 10,058,157 10,058,157 9,040,581
(26,876,664) 10,058,157 (16,818,507) (25,950,551)
14,532,727 - 14,532,727 12,618,447
2,408,999 - 2,408,999 1,247,467
1,624,176 - 1,624,176 1,798,673
21,549,194 - 21,549,194 17,780,042
2,220,592 - 2,220,592 2,035,009
2,277,785 - 2,277,785 2,045,462
44,613,473 - 44,613,473 37,525,100
7,646,019 - 7,646,019 3,180,581
(6,715,096) 608,506 (6,106,590) 157,163
600,381 (600,381) - -
46,144,777 8,1
25 46,152,902 40,862,844
19,268,113 10,066,282 29,334,395 14,912,293
44,671,379 120,344,318 165,015,697 146,925,504
63,939,492$ 130,410,600$ 194,350,092$ 161,837,797$ Totals
Net (Expense) Revenue
and Changes in Net Position
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30 142 of 369

FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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MAJOR GOVERNMENTAL FUNDS
General Fund
The General Fund is the primary operating fund of the City, accounting for all activities except those legally or administratively required to be accounted for in other funds. The General Fund includes activities such as public safety, parks and recreation services, community and econom ic 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.

Parks and Facilities Capital Improvement Fund
Accounts for funds expended on the improvement and development of the City’s facilities, infrastructure, major equipment and technological upgrades used to deliver services to the community. Funding comes from the General Fund, grants, and other sources.
33 145 of 369

City of San Bruno
Balance Sheet
Governmental Funds
June 30, 2022 (with comparative totals for June 30, 2021) Capital
Projects Fund
Nonmajor
Governmental
Funds 2022 2021
ASSETS
Cash and investments 29,536,324$ 9,199,222 $ 21,085,675 $ 59,821,22 1$ 47,342,456$ Cash and investments with fiscal agent 50,496 - 196 50,692 50,501 Receivables:

Taxes 5,099,304 - 344,341 5,443,645 6,437,389
Interest 76,483 - - 76,483 139,50 1
Loans 749,809 - - 749,809 775,862
Other 5,461,012 235,455 368,102 6,064,569 2,331,907
Due from other funds ---- 2 7,135
Advances to other funds 15,316,895 - - 15,316,895 14,415,65 1 Other assets - - 3,177,900 3,177,900 -
Total assets 56,290,323$ 9,434,677$ 24,976,214$ 90,701,214$ 71,520,402$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 5,238,378 5,106,22 1 1,080,671 11,425,270 5,395,354 Due to other funds ---- 2 7,135
Deposits payable 2,070,937 - 3,492,518 5,563,455 6,997,390 Unearned revenue 1,944,239 4,498,634 64,358 6,507,23 1 870,468 Other liabilities 440,500 - - 440,500 -
Advances from other funds - - 98,449 98,449 -
Total liabilities 9,694,054 9,604,855 4,735,996 24,034,905 13,290,347 Deferred Inflows of Resources
Unavailable revenue - - 3,261,134 3,261,134 83,234 Total deferred inflows of resources - - 3,261,134 3,261,134 83,234 Fund Balances:

Nonspendable 15,316,895 - - 15,316,895 14,415,65 1
Restricted - 36,373,209 17,053,319 53,426,528 22,782,488 Assigned 26,045,126 - - 26,045,126 30,408,528
Unassigned 5,234,248 (36,543,387 ) (74,235) (31,383,374) (9,459,846) Total fund balances 46,596,269 (170,178) 16,979,084 63,405,175 58,146,821 Total liabilities, deferred inflows of
resources and fund balances 56,290,323$ 9,434,677$ 24,976,214$ 90,701,214$ 71,520,402$ Totals
General Fund
Parks and
Facilities Capital
Improvement
See accompanying Notes to Basic Financial Statements
34 146 of 369

Total Fund Balances - Total Governmental Funds 63,405,175$ Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Nondepreciable 25,422,456$ - $ 25,422,456 Depreciable, net 57,061,730 (1,327) 57,060,403 Total capital assets 82,484,186$ (1,327) $ 82,482,859 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government- Wide Statement of Net Position. (2,637,521)
Net amount of internal service funds allocated to business-type activitie s (1,611,746)
Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 3,261,134 In the Government-Wide Financial Statements, deferred employer contributions for pension, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Government-
Wide Statement
of Net Position
Internal Service
Funds
Deferred outflows of resources related to pension 17,412,205 - 17,412,205 Deferred inflows of resources related to pension (31,522,751 ) - (31,522,751)
Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Compensated absences - due within one year (522,514) $ 23,936 $ (498,578) $ Interest payable (41,966) - (41,966) Long-term debt - due within one year (1,446,246) - (1,446,246) Claims and judgements - due within one year (1,545,000) 1,545,000 - Compensated absences - due in more than one year (2,237,097) 69,816 (2,167,281) Long-term debt - due in more than one year (5,635,254) - (5,635,254) Claims and judgements - due in more than one year (3,483,000) 3,483,000 - Net pension liability (57,060,538) - (57,060,538) Total long-term liabilitie
s (71,971,615)$ 5,121,752 $ (66,849,863) Net Position of Governmental Activities 63,939,492$
City of San Bruno
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
35 147 of 369

City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2022 (with comparative totals for June 30, 2021) Capital
Projects Fund
Nonmajor
Governmental
Funds 2022 2021
REVENUES:

Taxes 42,335,688$ -$ 1,921,217$ 44,256,905$ 35,545,170$ Licenses and permits 5,609,093 - 484,508 6,093,60 1 5,135,532 Intergovernmental 11,054,305 - 2,410,086 13,464,39 1 8,006,644 Charges for services 3,915,518 5,800 75,881 3,997,199 2,093,216 Fines and forfeitures 612,247 - 171,668 783,915 824,466 Use of money and property (6,745,185) - 86,742 (6,658,443 ) (250,036) Other revenues 6,579,462 10,192,085 (2,763,144 ) 14,008,403 12,194,820 Total revenues 63,361,128 10,197,885 2,386,958 75,945,971 63,549,812 EXPENDITURES:

Current:

General government 7,945,649 - 74,72 1 8,020,370 7,055,055 Public safety 30,356,530 - 337,176 30,693,706 28,682,296 Public works 1,551,310 - - 1,551,310 1,540,457
Streets 1,755,168 - 114,947 1,870,115 1,644,167
Parks and recreation 4,937,774 - 226,515 5,164,289 4,838,508 Library 2,071,002 - 23,034 2,094,036 1,957,533
Community and economic development 2,787,248 - 51,743 2,838,99 1 2,649,788 Capital outlay 2,008,149 13,822,599 2,746,540 18,577,288 4,498,002 Debt service:

Principal - - 1,357,15 1 1,357,151 1,398,135
Interest and fiscal charges - - 277,303 277,303 315,09 1 Total expenditures 53,412,830 13,822,599 5,209,130 72,444,559 54,579,032

REVENUES OVER (UNDER)
EXPENDITURES 9,948,298 (3,624,714) (2,822,172) 3,501,412 8,970,780 OTHER FINANCING SOURCES (USES):

Transfers in 5,094,598 1,335,336 5,653,32
1 12,083,255 12,170,782
Transfers out (3,827,888) (691,974) (7,406,451) (11,926,313) (12,462,140) Proceeds from long-term debt - - 1,600,000 1,600,000 -
Total other financing sources (uses) 1,266,710 643,362 (153,130) 1,756,942 (291,358) Net change in fund balances 11,215,008 (2,981,352) (2,975,302) 5,258,354 8,679,422 FUND BALANCES:

Beginning of year 35,381,26
1 2,811,174 19,954,386 58,146,82 1 49,467,399
End of year 46,596,269$ (170,178)$ 16,979,084$ 63,405,175$ 58,146,821$ Totals
General Fund
Parks and
Facilities Capital
Improvement
See accompanying Notes to Basic Financial Statements.
36 148 of 369

City of San Bruno
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2022
Net Change in Fund Balances - Total Governmental Funds 5,258,354$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 16,739,220
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (3,795,499) Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. 121,851 Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long- term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayment
s 1,357,151
Issuance of long-term debt (1,600,000)
Amortization of bonds premium (discount), net (19,518)
Current year employer pension contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 9,740,214
Pension expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (8,934,583) Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue (expense) of the internal service funds was reported with governmental activities. 400,923
Change in Net Position of Governmental Activities 19,268,113$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
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38 150 of 369

PROPRIETARY 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 providing goods and services be financed primarily through user charges.

The City has identified the funds below as major proprietary funds.

Water Fund
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 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
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.
39 151 of 369

City of San Bruno
Statement of Net Position
Proprietary Funds
June 30, 2022 (with comparative totals for June 30, 2021) ASSETS
Current Assets:

Cash and investments 47,838,565$ 674,293$ 46,255,182$ -$ Cash and investments with fiscal agent 456,425 - 1,462,166 - Receivables:

Taxes ----
Accounts 2,675,352 196,925 2,123,33 4 891,285
Prepaid items 47,540 ---
Total current assets 51,017,882 871,218 49,840,682 891,285 Noncurrent:

Capital assets:

Nondepreciable capital assets 3,779,714 1,076,280 4,947,343 500,000 Depreciable capital assets 55,589,923 5,752,069 87,549,620 22,390,528 Accumulated depreciation (22,704,665) (1,510,249) (33,729,428) (21,051,003) Net capital assets 36,664,972 5,318,100 58,767,535 1,839,525 Total noncurrent assets 36,664,972 5,318,100 58,767,535 1,839,525 Total assets 87,682,854 6,189,318 108,608,217 2,730,810

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on pensions 632,195 85,419 569,657 691,697 Deferred amount on refunding - - 80,977 -
Total deferred outflows of resources 632,195 85,419 650,634 691,697

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,004,160 160,730 118,137 693,563 Interest payable 226,425 - 603,807 -
Unearned revenue - - - 677,547
Compensated absences - current 20,086 8,002 13,808 60,611 Claims and judgements - current ----
Long-term debt - current portion 230,000 - 1,809,962 -
Total current liabilities 1,480,671 168,732 2,545,714 1,431,721 Noncurrent liabilities:

Advances from other funds - - - 15,218,44 6
Compensated absences 104,507 43,157 94,406 201,122
Claims payable ----
Net pension liability 3,562,284 481,316 3,209,895 3,897,562 Long-term debt 11,700,425 - 30,471,915 -
Total noncurrent liabilities 15,367,216 524,473 33,776,216 19,317,130 Total liabilities 16,847,887 693,205 36,321,93 0 20,748,851

DEFERRED INFLOWS OF RESOURCES
Deferred amount on pensions 1,233,238 166,628 1,111,243 1,349,308 Total deferred inflows of resources 1,233,238 166,628 1,111,243 1,349,308

NET POSITION
Net investment in capital assets 24,734,547 5,318,100 26,566,635 1,839,525 Restricted 456,425 - 1,462,166 -
Unrestricted 45,042,952 96,80 4 43,796,877 (20,515,177) Total net position 70,233,924$ 5,414,904 $ 71,825,678 $ (18,675,652) $ Reconciliation to the government-wide statement of net position:

Adjustment to reflect the consolidation of internal servic e fund activities related to enterprise funds 884,412$ 87,013$ (121,275)$ 761,596$ Net position of business-type activities 71,118,336 $ 5,501,917 $ 71,704,403 $ (17,914,056) $ Water Stormwater Wastewater CityNet
Business Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
40 152 of 369

2022 2021 2022 2021
94,768,040$ 83,336,857$ 2,781,517$ 2,593,440$ 1,918,591 4,123,199 91,119 91,119
-9 ,544 --
5,886,896 6,022,163 - 34,682
47,540 - --
102,621,067 93,491,763 2,872,636 2,719,241
10,303,337 12,911,310 --
171,282,140 166,079,157 52,493 52,493
(78,995,345) (73,943,667) (51,166) (47,188)
102,590,132 105,046,800 1,327 5,305
102,590,132 105,046,800 1,327 5,305
205,211,199 198,538,563 2,873,963 2,724,546 1,978,968 2,182,625 - -
80,977 88,339 --
2,059,945 2,270,964 - - 1,976,590 2,782,167 389,732 435,585
830,232 864,468 - -
677,547 695,807 - -
102,507 102,661 23,936 21,275
- - 1,545,000 1,072,204
2,039,962 2,122,235 - -
5,626,838 6,567,338 1,958,668 1,529,064
15,218,446 14,415,651 --
443,192 479,14 0 69,816 61,042
- - 3,483,000 4,339,796
11,151,057 16,235,611 --
42,172,340 44,212,303 - -
68,985,035 75,342,705 3,552,816 4,400,838
74,611,873 81,910,043 5,511,48 4 5,929,902
3,860,417 - --
3,860,417 - --
58,458,807 58,800,60 1 1,327 5,305
1,918,591 4,123,199 --
68,421,456 55,975,684 (2,638,848) (3,210,661)
128,798,854$ 118,899,484 $ (2,637,521) $ (3,205,356) $ 1,611,746$ 1,444,834$
130,410,600$ 120,344,318 $
Totals Totals
Business-Type Activities - Governmental Activities -
Enterprise Funds Internal Service Funds
See accompanying Notes to Basic Financial Statements.
41 153 of 369

City of San Bruno
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2022 (with comparative totals for June 30, 2021) OPERATING REVENUES:

Charges for services:

Water sales 16,581,226$ -$ -$ -$ Sewer service charges - - 19,262,372 - Cable television charges - - - 8,549,101 Other service charges 189,728 562,453 112,431 17,030 Other operating revenue 3,333 491,873 3,333 - Total operating revenues 16,774,287 1,054,326 19,378,136 8,566,131 OPERATING EXPENSES:

Water supply 9,486,358 - - -
Distribution - 1,420,201 - - Treatment - - 9,111,455 - Cable operations - - - 9,150,862 Central garage ----
Insurance expenses - - - - Technology support - - - - Facilities maintenance - - - - Depreciation and amortization 1,814,297 224,232 2,838,249 275,264 Total operating expenses 11,300,655 1,644,433 11,949,704 9,426,126 Operating income (loss) 5,473,632 (590,107) 7,428,432 (859,995) NONOPERATING REVENUES (EXPENSES):

Investment income 304,486 4,299 299,721 - Interest and debt service expenses (415,933) - (1,143,486) (1,298) Total nonoperating revenues (expenses) (111,447) 4,299 (843,765) (1,298) Income before contributions and transfers 5,362,185 (585,808) 6,584,667 (861,293) CONTRIBUTIONS AND TRANSFERS:

Transfers in - 1,000,000 - 250,000
Transfers out (457,100) - (1,207,882) (185,399)
Total contributions and transfers (457,100) 1,000,000 (1,207,882) 64,601 Change in net position 4,905,085 414,192 5,376,785 (796,692) NET POSITION:

Beginning of year 65,328,839 5,000,712 66,448,893 (17,878,960) End of year 70,233,924$ 5,414,904$ 71,825,678$ (18,675,652)$ Reconciliation to government-wide statement of activities:

Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds 73,513$ 2,646$ 103,842$ (13,089)$ Change in net position of business-type activities - End of y 4,978,598$ 416,838 $ 5,480,627 $ (809,781) $ Water Stormwater Wastewater CityNet
Business Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
42 154 of 369

2022 2021 2022 2021
16,581,226$ 17,602,299$ -$ -$ 19,262,372 18,298,857 - - 8,549,101 9,003,534 - - 881,642 919,585 6,497,974 6,203,732 498,539 97,118 - 34,681 45,772,880 45,921,393 6,497,974 6,238,413 9,486,358 10,443,967 - -
1,420,201 1,145,558 - - 9,111,455 8,990,002 - - 9,150,862 9,513,308 - - - - 744,855 732,601
- - 2,438,620 2,853,629 - - 1,268,418 966,026 - - 1,917,707 1,596,561 5,152,042 5,150,972 3,978 3,979 34,320,918 35,243,807 6,373,578 6,152,796 11,451,962 10,677,586 124,396 85,617 608,506 498,412 - - (1,560,717) (1,623,540) - - (952,211) (1,125,128) - - 10,499,751 9,552,458 124,396 85,617 1,250,000 500,000 443,439 90,000
(1,850,381) (298,642) --
(600,381) 201,358 443,439 90,000 9,899,370 9,753,816 567,835 175,617 118,899,484 109,145,668 (3,205,356) (3,380,973) 128,798,854$ 118,899,484$ (2,637,521)$ (3,205,356)$ 166,912$ (13,465)$
10,066,282$ 9,740,351$
Business-Type Activities - Governmental Activities -
Enterprise Funds Internal Service Funds
Totals Totals
See accompanying Notes to Basic Financial Statements.
43 155 of 369

City of San Bruno
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2022 (with comparative totals for June 30, 2021) CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from interfund services provided -$ - $ - $ - $ Cash receipts from customers 16,838,521 873,545 19,534,594 8,605,231 Cash payments to suppliers for goods and services (9,350,278) (1,290,181) (10,244,341) (9,089,653) Cash (payments) receipts to employees for services (343,970) (46,986) (297,233) (361,031) Cash reimbursements for loss claims - - - -
Net cash provided by (used in) operating activities 7,144,273 (463,622) 8,993,020 (845,453) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Advances from other funds - - - 971,766
Advance repayments to other funds - - - (168,971)
Transfers received from other funds - 1,000,000 - 250,000 Transfers paid to other funds (457,100) - (1,207,882) (185,399) Net cash provided by (used in)
noncapital financing activities (457,100) 1,000,000 (1,207,882) 867,396 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (936,203) (586,221) (1,152,305) (20,645) Principal payments on long-term debt (261,555) - (1,860,681) - Interest paid on long-term debt (420,333) - (1,173,322) (1,298) Net cash provided by (used in)
capital and related financing activities (1,618,091) (586,221) (4,186,308) (21,943) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (expense) 304,486 4,299 299,721 - Net cash provided by (used in) investing activities 304,486 4,299 299,721 - Net cash flows 5,373,568 (45,544) 3,898,551 - CASH AND INVESTMENTS - Beginning of year 42,921,422 719,837 43,818,797 - CASH AND INVESTMENTS - End of year 48,294,990$ 674,293$ 47,717,348$ -$

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

Operating income (loss) 5,473,632$ (590,107)$ 7,428,432$ (859,995)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation and amortization 1,814,297 224,232 2,838,249 275,264 (Increase) decrease in current assets:

Taxes receivable - 9,544 - -
Accounts receivable 111,774 (190,325) 156,458 57,360
Other receivable ----
Prepaid items (47,540) ---
(Increase) decrease in deferred outflows of resources 65,060 8,790 65,986 71,183 Increase (decrease) in liabilities:

Accounts payable and accrued liabilities 136,080 130,020 (1,132,886) 61,209 Unearned revenue --- (18,260)
Compensated absences (17,971) (2,938) (10,844) (4,349)
Net pension liability (1,624,297) (219,466) (1,463,618) (1,777,173) Claims liability ----
Increase (decrease) in deferred inflows of resources 1,233,238 166,628 1,111,243 1,349,308 Net cash provided by (used in) operating activities 7,144,273$ (463,622)$ 8,993,020$ (845,453)$ Business Type Activities - Enterprise Funds
Water Stormwater Wastewater CityNet
See accompanying Notes to Basic Financial Statements.
44 156 of 369

2022 2021 2022 2021
-$ -$ 6,532,656$ 6,258,363$ 45,851,891 45,361,254 - -
(29,974,453) (32,317,388) (6,788,018) (6,115,976)
(1,049,220) 445,882 - -
- - - 476,000
14,828,218 13,489,748 (255,362) 618,387 971,766 490,799
(168,971) (168,086) --
1,250,000 500,000 443,439 -
(1,850,381) (298,642) - 90,000
202,414 524,071 443,439 90,000 (2,695,374) (8,198,716) --
(2,122,236) (1,921,195) --
(1,594,953) (1,750,697) --
(6,412,563) (11,870,608) - - 608,506 496,228 - - 608,506 496,228 - - 9,226,575 2,639,439 188,077 708,387 87,460,056 84,820,617 2,684,559 1,976,172 96,686,631$ 87,460,056$ 2,872,636$ 2,684,559$ 11,451,962$ 10,636,031 124,396 85,617
5,152,042 5,150,972 3,978 3,979
9,544 - - -
135,267 (9,544) 34,682 (34,682)
- (501,931) - 233
(47,540) ---
211,019 (371,036) --
(805,577) (2,173,454) 89,043 67,290
(18,260) (58,208) --
(36,102) 94,106 (123,461) 19,950
(5,084,554) 1,010,002 - -
- (287,190) (384,000) 476,000
3,860,417 - - -
14,828,218$ 13,489,748 $ (255,362) $ 618,387 $ Internal Service Funds
Totals
Governmental Activities - Business-Type Activities -
Enterprise Funds
Totals
See accompanying Notes to Basic Financial Statements.
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FIDUCIARY FUNDS
Fiduciary funds are used to report assets held for fiduciary activities, which may be carried out by primary governments or their component units. Fiduciary funds may be (1) held for legally established trust funds or similar arrangements, or (2) held outside of a trust exclusively fo r 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 t he former Redevelopment Agency of the City in a trustee capacity to pay for enforceable obligations of the former Redevelopment 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.
47 159 of 369

City of San Bruno
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022 (with comparative totals for June 30, 2021) 2022 2021 2022 2021
ASSETS
Cash and investments 1,856,902$ 2,207,987$ 590,885$ 531,720$ Cash and investments with fiscal agent 9 5 - - Taxes receivable - - - - Accounts receivable - - 761,248 790,645 Interest receivable - - - - Loans receivable - - - - Other receivable - - - - Prepaid items - - - - Total assets 1,856,911 2,207,992 1,352,133 1,322,365

DEFERRED OUTFLOWS OF RESOUCES
Deferred loss on refunding 33,429 44,573 - - Total deferred outflows of resources 33,429 44,573 - -

LIABILITIES
Accounts payable 3,350 197,595 1,350,223 1,320,570 Interest payable 26,342 28,608 - - Deposits payable - - - - Other liabilities - - 1,910 1,795 Long-term liabilities:

Long-term debt - due within one year 350,000 392,422 - - Long-term debt - due in more than one year 3,836,798 4,186,798 - - Total liabilities 4,216,490 4,805,423 1,352,133 1,322,365

NET POSITION
Restricted for:

Individuals, organizations, and other governments - - - - Net position held in trust (2,326,150) (2,552,858) - - Total Net Position (2,326,150)$ (2,552,858)$ -$ -$ Redevelopment
Agency Obligation Recology San Bruno
Retirement Trust Fund Custodial Fund
See accompanying Notes to Basic Financial Statements.
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City of San Bruno
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2022 (with comparative totals for June 30, 2021) 2022 2021 2022 2021
ADDITIONS:

Administration allowance 9$ 23,861$ -$ -$ Taxes 350,417 1,099,226 - - Charges for services - - 8,987,351 8,577,163 Other revenues 7,737 5 - - Total additions 358,163 1,123,092 8,987,351 8,577,163 DEDUCTIONS:

Community development 3,350 216,754 - - Franchise fees to City - - 904,546 866,069 AB939 fees to City - - 90,455 86,607 Remittances to Recology - - 7,992,350 7,624,487 Interest and fiscal charges 128,105 130,061 - - Total deductions 131,455 346,815 8,987,351 8,577,163 Change in net position 226,708 776,277 - - NET POSITION:

Beginning of year (2,552,858) (3,329,135) - - End of year (2,326,150)$ (2,552,858)$ -$ -$ Redevelopment
Agency Obligation
Retirement Trust Fund
Recology San Bruno
Custodial Fund
See accompanying Notes to Basic Financial Statements.
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50 162 of 369

NOTES TO BASIC

FINANCIAL STATEMENTS
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity
The financial reporting entity consists of (a) the primary 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.

B. Related Organizations
The San Bruno Community Foundation (Foundation) is a California nonprofi t 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 Company (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 million to the City, which comprised of 1) five vacant plots of land in the Glenview (Crestmoor) neighborhood, which 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 purpose 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 City. Separate financial statements for the Foundation may be obtained by contacting the San Bruno Community Foundation, 901 Sneath Lane, Ste. 209, San Bruno, CA 94066.

In the fiscal year ended June 30, 2022, The Foundation provided the City $10,192,085 in grant funding for the Recreation and Aquatics Center project, $10,000 for the COVID-19 rapid tests, and $15,000 for the reduction of negative impacts of drugs on families. The City has recorded $235,455 in receivables from the Foundation as of June 30, 2022.

C. Basis of Presentation
Government-Wide Financial Statements - The statement of net position and statement of activities display information about the reporting government as a whol e. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental 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 organized into funds each of which is considered to be a separate accounting entity. Each fund is a ccounted for by providing a separate set of self-balancing accounts, which constitu te 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. 53 165 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued C. Basis of Presentation, Continued
The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the City Council is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or where the City Council has decided that periodic determination of net income is appropriate for accountability purposes.

A fund is considered major if it is the primary operating fund of the City or meets the following criteria:
(a) Total assets, deferred outflows of resources, liab ilities, deferred inflow of resources, revenues, or expenditures/expenses of that individual 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, liab ilities, deferred inflow of resources, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. However, some funds are reported as major funds due to the significance to the users of the financial statements.

The major funds of the financial reporting entity are described below.

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

Parks and Facilities Capital Improvement – Accounts for funds expended on the improvement and development of the City’s facilities, infrastructure, major equipment and technological upgrades used to deliver services to the community. Funding comes from the General Fund, grants, and other sources.

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, including, but not limited to, administration, operations, maintenance, capital improvement, and billing and collections.

Stormwater Fund – Accounts for storm drain system maintenance, street 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.
54 166 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued C. Basis of Presentation, Continued
Wastewater Fund – Accounts 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.

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 activities 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 fund s billed, collected, and remitted to Recology San Bruno for waste management services within the City.

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

On the government-wide Statement of Net Position and 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 financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate:
(a) All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets and liabilities are generally incl uded on their balance sheets. Their operating statements present sources and uses of availabl e spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.
55 167 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued D. Measurement Focus, Continued
(b) The enterprise and internal service funds utilize an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of net income, financial position, and cash flows. All assets and liabilities (whether current 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 the accrual basis of accounting. Fiduciary funds are excluded from the government-wide financial statements because they do not represent resources of the City.

E. 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 recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting 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 accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being ab le to reasonably estimate 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 taxes, 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 contributions, and 3) capital grants and contributions.

Internally dedicated resources are reported as general revenues rather than program revenues. Likewise, general revenues include all taxes.

The enterprise, internal service and fiduciary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Oper ating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are th ose expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

Assets, Liabilities, and Equity
F. 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. 56 168 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued F. Cash Deposits and Investments, Continued
The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value 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.

G. 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 governmental activities are eliminated in the Statement of Net Position. See Note 3 for details of interfund transactions, including receivables and payables at year-end.

H. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Allowances of uncollectible accounts rece ivable are based upon historical trends and the periodic aging of accounts receivable. Major receivab le balances for the governmental activities include property taxes, sales and use taxes, franchise taxes, intergovernmental subventions, interest earnings, paramedic service, and expense reimbursements.

Business-type activities report service charges and expense reimbursements as its major receivables. In the fund financial statements, sign ificant 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 statemen ts in accordance with the accrual basis. Interest and investment earnings are recorded when earned on ly if paid within 60 days since they would be considered both measurable and available.
57 169 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued H. Receivables, Continued
Proprietary fund material receivables consist of all revenues earned at year-end and not yet received.

Customer and intergovernmental accounts receivab le comprise the majority of proprietary fund receivables.

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

J. Capital Assets
The City's assets are capitalized at historical cost or estimated 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. Donated 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 (infrastructur e) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems and are capitalized at $100,000.

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

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

Depreciation of all exhaustible capi tal assets is recorded as an allo cated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement 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:

Fund Financial Statements - In the fund financial statements, capital 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.
58 170 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued K. Long-Term Debt
The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations an d whether they are reported in the government-wide or fund financial statements.

All long-term debt to be repaid from governmental and business-type resources is reported as a liability in the government-wide statements. The long-term debt consists of bonds, finance purchase agreements, 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 other financing sources, and payment of principal 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.

L. Compensated Absences
The City’s policies regarding vacation time and co mpensatory time permit employees to accumulate earned but unused leave. The current portion of this debt is estimated based on historical trend and funded in the individual fund generating the liabili ty with the long-term portion shown as a long-term liability.

The changes of the compensated absences were as follows:

M. 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. 59 171 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued N. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. 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 acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Revenues, Expenditures, and Expenses
O. Property Tax
Under California law, property taxes are assessed and collected 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. A ccordingly, the City accrues only those taxes which are receivable from the county within sixty days after year end.

Lien Date January 1
Levy Date July 1
Due Dates 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 after December 10 and April 10. All general property taxes are then allocated by the San Mateo County Cont roller’s Office to the various taxing entities in accordance with Proposition 13. Property tax revenues are recognized when levied to the extent 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.

P. 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
60 172 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued P. Expenditures/Expenses, Continued
In the fund financial statements, governmental funds report expenditures of current financial resources.

Q. 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 individual governmental funds have been eliminated with internal balances (between governmental and business-type activities) remaining on the statement of net position.

R. Prior Year Comparative Financial Information
The basic financial statements included certain pr ior year summarized comparative information. This information has been included for comparison purposes and does not represent a complete presentation in accordance with generally accepted accounting pr inciples. Accordingly, such information should be read in conjunction with the City’s prior year fina ncial 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.

S. 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 assumptions that affect the reported amounts of assets, liabilities, re venues and expenditures/expenses du ring the reporting period. Actual results could differ from those estimates.

T. Budgetary Policies
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
(a) Public meetings are conducted to obtain public comments. The City Council annually adopts the budget for the ensuing fiscal year prior to July 1st.
(b) Legally adopted budgets and formal budgetary integration is employed as a management control device during the year for all Governmental, Proprietary and Fiduciary fund types. (c) Budgets for the General, Special Revenue, and Capital Project Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America (GAAP). 61 173 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued T. Budgetary Policies, Continued
(d) Under Article XIII B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to t he amount of annual a p propriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised 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, 2022 based on the calculations by City Management, proceeds of taxes did not exceed the appropriations limit.
(e) Budgeted revenue and expenditure amounts represent the original budget modified by adjustments authorized during the year.
(f) Appropriations, except for those encumbered under purchase orders, lapse at the end of the fiscal year. Encumbered amounts are then carried over for the coming year. (g) Budgeted appropriations for the various governmental funds become effective each July 1. The City Council may amend the budget during the fiscal year. The legal leve l of budgetary control has been established at the fund level.
(h) Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all governmental funds.

U. 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 hierarch y established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

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

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

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

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
62 174 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued V. Loans Receivable – Related Parties
The City routinely loans funds to employees, including to the City Manager, for the purchase of a primary residence within the City limits. Amounts range from $65,000-$200,000. The interest rate on these loans is set at the Local Agency Investment Fund (LAIF) interest rate. At June 30, 2022, six employees such loans were outstanding for an amount totaling $749,809 owed to the City. Loans must be paid off within 15 years, or earlier if one of the following occurs: a) Six months following termination of the employee's employment with the City, b) three months following the employee no longer living at the residence.

During the fiscal year, the City made new loans in the amount of $95,000, and employees paid $120,997 in principal.

W. New Pronouncements
The City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
¾ GASB Statement No. 87, Leases – The objective of this statement is to better meet the information needs of financial statement users by improving ac counting and financial reporting for leases by governments. The requirements of this statement did not apply to the City for the current fiscal year.
¾ GASB Statement No. 89, Construction-period interest – The objectives of this Statement 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. The requirements of this statement did not apply to the City for the current fiscal year.
¾ GASB Statement No. 92, Omnibus 2020 – The objectives of this Statement are to enhance comparability in accounting and financial re porting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The requirements of this statement did not apply to the City for the current fiscal year.
¾ GASB Statement No. 93, Interbank offered rates (LIBOR removal and lease modifications) – The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an interbank offered rate. The requirements of this statement did not apply to the City for the current fiscal year.
¾ GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – The 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. This 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 relationsh ip exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The requirements of this statement did not apply to the City for the current fiscal year. 63 175 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES, Continued W. New Pronouncements
¾ GASB Statement No. 99, Omnibus 2022 – The objectives of this Statement are to enhance comparability in accounting and financial re porting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements of this statement did not apply to the City for the current fiscal year.

2. CASH AND INVESTMENTS
The City pools cash from all sources and all funds, except 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 individual investments and in investment pools. Individual investments are evidenced by specific identifiable piec es 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. Classification
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. 64 176 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
Cash and investments as of June 30, 2022, consisted of the following:

Cash and investments with original maturities of three months or less are treated as cash and equivalents for the purpose of preparing Proprietary Fund statements of cash flows. Also, each Proprietary Funds’ p o r t i o n o f t h e C i t y ’ s o v e r a l l c a s h a n d i n v e s t m e n t p o o l i s t r e a t e d a s c a s h a n d e q u i v a l e n t s s i n c e t h e s e amounts are in substance demand deposits.

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

During the year ended June 30, 2022, the City’s permissible investments included the following instruments:
65 177 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
B. Investments Authorized by the California Go vernment Code and the City’s Investment Policy, Continued
The City complied with the provisions of California Government Code (or the City’s investment policy, where more restrictive) pertaining to the types of investments held, institutions in which deposits were made and security requirements. Th e City will continue to monitor compliance with applicable statutes pertaining to public deposits and investments.

C. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates which 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 City manages its exposure to interest rate risk is by purchasing a combination of shorter and longer term investments. This allows the City to time cash flows from maturities so that a portion of the portfolio 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:

The City’s investments in U.S. Treasuries, U.S. Agencies, and municipal bonds had a weighted average maturity of 3.2 years at June 30, 2022.
66 178 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
C. Interest Rate Risk, Continued
The City is a participant in the Local Agency Invest ment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF management calculates the fair value and cost of th e entire LAIF pool. The City adjusts its cost basis invested in LAIF to fair value based upon this factor . The City’s investments with LAIF at June 30, 2022, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.

Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2022, the City had $26,560,725 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.31% in the previous year. The LAIF fair value factor of 0.987125414 was us ed to calculate the fair value of the investments in LAIF.

The City invests in the San Mateo County Pooled Investment Fund (SMCPIF), an external investment pool. The pool determines fair value on its investme nt portfolio based on mark et quotations for those securities where market quotations are readily available, and valuations are based on amortized cost or best estimate for those securities where market va lue 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 2 7130. 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 0.9688. 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 within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. 67 179 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
D. Fair Value Hierarchy, Continued
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2022:

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. Munici pal 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 classified 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.

Investments by Fair Value Level: Level 2 Total
U.S. Treasuries & Agencies 70,035,886 $ 70,035,886 $ Municipal Bonds 25,348,013 25,348,013
Certificate of Deposit 483,645 483,645
Money Market Mutual Fund 2,195,742 2,195,742
Totals 98,063,286$ 98,063,286$
Investments Measured Using Fair Value Factor:

Local Agency Investment Fund (LAIF) 26,560,725
San Mateo County Investment Pool 25,181,242
Totals 51,741,967
Total Investments 149,805,253$
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
E. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As disclosed in Note 2B, State law and the City’s investment Policy limit the City’s investments to certain minimum credit ratings. Minimal 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, 2022, for each investment type as provided by Moody’s investment rating system:
1 1
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

3. TRANSFERS AMONG FUNDS
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, 2022, were as follows:

General Fund
Transfers from the General Fund to Parks and Faciliti es, CityNet, $352,027 to the non-major governmental funds, and all transfers to internal service funds were to support budgeted capital projects. The purpose of transferring $1,282,422 from the General Fund to the Non-Major Governmental Funds was to make payments on long-term debt.

Transfers to the General Fund from the Wastewater and Water funds, $42,270 from the Parks and Facilities fund, and $850,000 from the non-major governmental funds were to support capital projects. $200,000 from non-major governmental funds was used to support the police department. The purpose of the remainder of the transfers in to the General Fund were to return unspent project monies.

Parks and Facilities Capital Improvement Fund
Transfers in to the Parks and Facilities fund from th e non-major governmental funds and the CityNet Fund were for capital projects. Transfers out to the non-major governmental funds from the Parks and Facilities fund were to support capital projects.

Non-Major Internal
General Parks and Governmental Service
Transfers Out Fund Facilities Funds Stormwater CityNet Funds Total Major Funds:

General Fund -$ 500,000$ 1,634,449$ 1,000,000$ 250,000$ 443,439$ 3,827,888$ Parks and Facilities 690,904 - 1,070 - - - 691,974 Non-Major Governmental Funds 2,643,313 745,336 4,017,802 - - - 7,406,451 Major Enterprise Funds:

Water 457,100 - - - - - 457,100 Wastewater 1,207,882 - - - - - 1,207,882 CityNet 95,399 90,000 - - - - 185,399 Total 5,094,598$ 1,335,336$ 5,653,321$ 1,000,000$ 250,000$ 443,439$ 13,776,694$ Transfers In
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

3. TRANSFERS AMONG FUNDS, Continued
B. Interfund Advances
During fiscal year 2016, the General Fund loaned the CityNet Services Enterprise Fund $1,170,000 for a Fiber to Home project at the Shelter Creek Condominiums. The advance accrues interest at a 0.525% annual interest rate for seven years. At June 30, 2022, the balance of the advance was $155,671. For multiple fiscal years, CityNet Services Enterprise Fund has had 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, 2022, the cash balance due to the General Fund was $15,062,775.

4. CAPITAL ASSETS
A. Capital Asset Additions and Retirements
Governmental activities capital assets as of June 30, 2022 comprise:

Balance
July 1, 2021 Additions
Retirements/
Transfers
Balance
June 30, 2022
Governmental Activities
Capital assets not being depreciated:

Land 4,649,235 $ - $ - $ 4,649,235$ Construction in progress 7,964,654 13,761,254 (952,687) 20,773,221 Total capital assets not being depreciated 12,613,889 13,761,254 (952,687) 25,422,456 Capital assets being depreciated:

Buildings and improvements 16,603,403 264,906 - 16,868,309 Machinery, improvements and equipment 17,503,284 1,871,978 (140,722) 19,234,540 Infrastructure 99,188,781 841,082 952,687 100,982,550 Total capital assets being depreciated 133,295,468 2,977,966 811,965 137,085,399 Less accumulated depreciation for:

Buildings and improvements (9,706,288) (515,612) - (10,221,900) Machinery, improvements and equipment (12,761,730) (912,937) 140,722 (13,533,945) Infrastructure (53,896,896) (2,370,928) - (56,267,824) Total accumulated depreciation (76,364,914) (3,799,477) 140,722 (80,023,669) Net capital assets being depreciated 56,930,554 (821,511) 952,687 57,061,730 Governmental Activities capital assets, net 69,544,443$ 12,939,743$ -$ 82,484,186$ 71 183 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

4. CAPITAL ASSETS, Continued
A. Capital Asset Additions and Retirements, Continued
Business-type activities capital assets as of June 30, 2022 comprise:

B. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets.

The amounts allocated to each function or program are as follows:

Balance
July 1, 2021 Additions
Retirements/
Transfers
Balance
June 30, 2022
Business-type activities:

Capital assets not being depreciated:

Land 576,842 $ - $ - $ 576,842$ Construction in progress 12,334,468 1,832,417 (4,440,390) 9,726,495 Total capital assets not being depreciated 12,911,310 1,832,417 (4,440,390) 10,303,337 Capital assets being depreciated:

Buildings and improvements 103,320,156 475,974 4,440,390 108,236,520 Machinery, improvements and equipment 33,491,095 97,829 (100,364) 33,488,560 Sewer plant 29,267,906 289,154 - 29,557,060 Total capital assets being depreciated 166,079,157 862,957 4,340,026 171,282,140 Less accumulated depreciation for:

Buildings and improvements (30,466,031) (3,057,765) - (33,523,796) Machinery, improvements and equipment (26,380,378) (1,040,286) 100,364 (27,320,300) Sewer Plant (17,097,258) (1,053,991) - (18,151,249) Total accumulated depreciation (73,943,667) (5,152,042) 100,364 (78,995,345) Net capital assets being depreciated 92,135,490 (4,289,085) 4,440,390 92,286,795 Business-type activity capital assets, net 105,046,800$ (2,456,668) $ - $ 102,590,132$ 72 184 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

4. CAPITAL ASSETS, Continued
B. Depreciation Allocation, Continued

5. LONG-TERM DEBT
The City generally incurs long-term debt to finance pr ojects or purchase assets which will have useful lives equal to or greater than the related debt.

A. The City’s Long-Term Debt
The following is a summary of long-term debt transactions for the year ended June 30, 2022:
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

5. LONG-TERM DEBT, Continued
A. The City’s Long-Term Debt, Continued
B. Governmental Activities
2013 Pension Obligation Bonds
In January 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 represents a refunding of a debt that the City owed to CalPERS. The issuance of the Pension Obligation Bonds reduced the interest rate on this debt from 7.5% to just over 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 the payoff of the side fund. Payments are made out of the debt service fund.

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 conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent juri sdiction shall assume custody or control of the City.

During fiscal year 2021-22, the City made principal and interest payments totaling $940,000 and $240,075, respectively. The bonds mature on June 1, 2027.
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

5. LONG-TERM DEBT, Continued
B. Governmental Activities, Continued
The annual debt service requirement on the 2013 Pension Obligation Bonds is as follows:

Direct Borrowings
In 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 truc k. Principal and interest payments were due semi- annually on April 28 and October 28 with an interest rate of 1.89%. Payments were made out of the debt service fund. During fiscal year 2021-22, the City made principal and interest payments totaling $90,522 and $855, respectively. The lease purchase agreement was paid in full on October 28, 2021.

In October 2018, the City entered into a $1,630 ,339 capital lease-purchase agreement with Key Government Finance, Inc., to purchase router equipment 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 recognizes adequate revenue to pay for the annual lease- purchase payments. During fiscal year 2021-22, the City made principal and interest payments totaling $ 326,629 and $25,398, respectively. The lease-purchase agreement will be paid in full on November 26, 2022.

The annual debt service requirement on the 2018 cable router obligation is as follows:
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

5. LONG-TERM DEBT, Continued
B. Governmental Activities, Continued
In June 2022, the City entered into a $1,600,000 capital lease-purchase agreement with Western Alliance Equipment Finance, Inc., to purchase two fire pumper trucks. Principal payments are due semi-annually on December 1 and June 1 with an interest rate of 3.35%. The debt payments are made by the debt service fund. The first payment on the debt will be December 1, 2022 and will be paid in full on June 1, 2032.

The annual debt service requirement on the 2022 fire pumper trucks borrowing is as follows:

C. Business-Type Activities
2017 Water Revenue Bonds
In December 2017, the San Bruno Public Financing Authority issued $11.62 million of Series 2017 Water Revenue Bonds to finance the construction of certain improvements to the Water System. Principal payments commenced on July 1, 2018 and are payable annually on July 1. Interest payments are payable on July 1st and January 1st of each year.

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 City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent juri sdiction shall assume custody or control of the City.

During fiscal year 2021-22, the City made principal and interest payments totaling $220,000 and $457,250, respectively. The bonds mature on July 1, 2047.
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

5. LONG-TERM DEBT, Continued
C. Business-Type Activities, Continued
The annual debt service requirement on the bonds is as follows:
2017 Wastewater Revenue Bonds
In December 2017, the San Bruno Public Financing Authority issued $24.47 million of Series 2017 Wastewater Revenue Bonds to finance the construction of certain improvements to the Wastewater System. Principal payments commenced on July 1, 2018 and are payable annually on July 1. Interest payments are payable on July 1st and January 1st.

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 conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent juri sdiction shall assume custody or control of the City.

During fiscal year 2021-22, the City made principal and interest payments totaling $470,000 and $963,450, respectively. The bonds mature on July 1, 2047.

For the Year
Ending June 30 Principal Interest Total
2023 $ 230,000 $ 448,250 $ 678,250 2024 240,000 438,850 678,850
2025 250,000 427,800 677,800
2026 260,000 415,050 675,050
2027 275,000 401,675 676,675
2028-2032 1,600,000 1,781,500 3,381,500
2033-2037 2,010,000 1,367,650 3,377,650
2038-2042 2,405,000 964,100 3,369,100
2043-2047 3,580,000 445,800 4,025,800
Subtotal 10,850,000 6,690,675 17,540,675
Plus Premium 1,080,425 - 1,080,425 Total 11,930,425$ 6,690,675 $ 18,621,100 $
2017 Water Revenue
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

5. LONG-TERM DEBT, Continued
C. Business-Type Activities, Continued
The annual debt service requirement on the bonds is as follows:
2013 Wastewater Revenue Refunding Bonds
In August 2013, the City paid off the remaining ba lance or $7.56 million of 2002 Certificates of Participation by placing the proceeds of new Wastewater Revenue Refunding 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 2002 certificates and, therefore, the 2002 Certificates of Participation were paid-off as of June 30, 2014.

During fiscal year 2021-22, the City made principal and interest payments totaling $320,000 and $217,200 respectively. The bonds mature on July 1, 2032.

For the Yea r
Ending June 30 Principal Interest Total
2023 $ 485,000 $ 944,350 $ 1,429,350 2024 505,000 924,550 1,429,550 2025 525,000 901,325 1,426,325 2026 550,000 874,450 1,424,450 2027 580,000 846,200 1,426,200 2028-2032 3,365,000 3,754,125 7,119,125 2033-2037 4,235,000 2,882,875 7,117,875 2038-2042 5,065,000 2,032,300 7,097,300 2043-2047 7,550,000 940,200 8,490,200 Subtotal 22,860,000 14,100,375 36,960,375
Plus Premium 2,275,881 - 2,275,881 Total 25,135,881$ 14,100,375 $ 39,236,256 $
2017 Wastewater Revenue
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

5. LONG-TERM DEBT, Continued
C. Business-Type Activities, Continued
The annual debt service requirement on the bonds is as follows:

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 facilities to service both communities. The agreement was entered into in January 1947 and has numerous subs equent 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 control 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 2007). Loan proceeds were disbursed as the projects progressed and debt service payments commenced one year after project completion. As a result of the joint ownership agreement, the City is obligated to SSF for its portion 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 2021-22, the City made principal and interest payments totaling $965,271, and $82,751, respectively.

The loans will be paid in full on August 1, 2022 and April 30, 2026.

For the Year
Ending June 30 Principal Interest Total
2023 $ 335,000 $ 204,263 $ 539,263 2024 345,000 188,100 533,100 2025 365,000 170,350 535,350 2026 380,000 151,725 531,725 2027 405,000 132,100 537,100 2028-2032 2,300,000 377,438 2,677,438 2033 520,000 11,700 531,700 Subtotal 4,650,000 1,235,676 5,885,676
Plus Premium 196,630 - 196,630 Total 4,846,630$ 1,235,676$ 6,082,306$
2013 Wastewater Revenue Refunding
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

5. LONG-TERM DEBT, Continued
C. Business-Type Activities, Continued
The City’s annual debt service requirements on the loans are as follows:

D. Fiduciary Funds
The following is a summary of the Redevelopmen t Obligation Retirement Fund’s long-term debt transactions for the year ended June 30, 2022:
2019 Lease Revenue Bonds
In 2000, the City issued City of San Bruno Certific ates of Participation, Series 2000 (Police Facility Financing) in the original principal amount of $9,600 ,000 to fund the construction of the Police Facility.

In March 2019, the City paid off the remaining balance of $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 Certificates and, therefore, the 2000 Certificates of Participation were paid off as of June 30, 2019.
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

5. LONG-TERM DEBT, Continued
D. Fiduciary Funds, Continued
Principal payments are due annually on May 1 and interest payments are du e semi-annually on May 1 and November 1. Interest rates range from 4.00% to 5.00%. During fiscal year 2021-22, the City made principal and interest payments totaling $340,000, and $171,650, respectively.

The Bonds are payable from any source of 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 pa yments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.

6. NET POSITION AND FUND BALANCES
Net Position 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 determined on ly at the Government-wide level, and are described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

6. NET POSITION AND FUND BALANCES, Continued
A. Net Position, Continued
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter.

Unrestricted describes the portion of Net Position which is not restricted to use.

B. Fund Balances
The City’s fund balances are classified in accordance with Governmental Accounting Standards Board Statement Number 54 (GASB 54), Fund Balance Repo rting 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 the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendables represents balances set aside to indicate it ems that do not represent available, spendable resources even though they are a component of assets. Fund 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.

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

Nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances have constraints imposed by resolution of the City Council which may be altered only by resolution of the City Council. Nonspe ndable 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 neither restricted nor committed. Intent is expres sed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes encumbrances; Nonspendables, when it is the City’s intent to use proceeds or collections fo r a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. Through a Council Resolution, the City Council has designated the City Manager to determine the amount of assigned fund balances.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual General Fund balance and residual fund deficits, if any, of other governmental funds.
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

6. NET POSITION AND FUND BALANCES, Continued
C. Spending Order Policy
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has provided otherwise in its commitment or assignment actions.

D. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Encumbrance accounting is utilized to the exte nt necessary to ensure effective budgetary control and accountability and to facilitate effective cash planning 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 be honored upon performance by the vendor in the next year were as follows:
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

6. NET POSITION AND FUND BALANCES, Continued
E. Fund Balances
Detailed classifications of the City’s fund balances, as of June 30, 2022, are below:

The City established a reserve 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, budget practices, and debt levels, establishes targeted levels for the General Fund Rese rve (25% of budgeted expenditures), General Fund Contingency (minimum $1,500,000) and Capital Impr ovement/One-Time Initiative 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 update of the City’s fiscal needs. As the City Council and management can only use reserves for purposes consistent with the purposes described in the policy, these reserve amounts are reported as assignments of the General Fund’s balance.

Fund Balance Classifications
General
Fund
Parks and
Facilities
Capital
Improvement
Fund
Other
Governmental
Funds Total
Nonspendables:

Advances to other funds 15,316,895$ -$ -$ 15,316,895$ Total Nonspendable Balances 15,316,895 - - 15,316,895 Restricted for:

Disaster recovery - - 913,261 913,261 Special Revenue Programs - - 9,561,779 9,561,779 Capital Projects - 36,373,209 5,877,434 42,250,643 Affordable Housing Activities - - 700,649 700,649 Debt Service - - 196 196 Total Restricted Fund Balances 36,373,209 17,053,319 53,426,528 Assigned to:

General Fund Reserve 12,340,108 - - 12,340,108 General Fund Contingency 4,168,818 - - 4,168,818 Emergency Disaster Reserve 2,777,340 - - 2,777,340 Capital Improvement/One-Time
Initiative Reserve 4,600,000 - - 4,600,000 Encumbrances 2,158,860 - - 2,158,860 Total Assigned Fund Balances 26,045,126 - - 26,045,126 Unassigned 5,234,248 (36,543,387) (74,235) (31,383,374) Total Unassigned Fund Balances 5,234,248 (36,543,387) (74,235) (31,383,374) Total Fund Balances 46,596,269$ (170,178)$ 16,979,084$ 63,405,175$ 84 196 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

6. NET POSITION AND FUND BALANCES, Continued
E. Fund Balances, Continued
The General Fund Reserve can only be utilized through resolution of the City Council. Appropriations of these funds are reserved for the following situations: A decrease in revenues in excess of 5% of total budgeted General Fund revenues within one year, the loss of revenues from another government entity, and one-time, non-recurring initiatives of the City Council deemed of significant importance to the City.

The balance at June 30, 2022 was $12,340,108.

The General Fund Contingency Reserve can be utilized through resolution for a budget appropriation deemed appropriate by City Council. The balance at June 30, 2022 was $4,168,818.

The Emergency Disaster Reserve is intended to be utilized in the event of a declaration of emergency that requires the expenditure of funds outside of the adopted budget. The Emergency Disaster Reserve can only be utilized through resolution of the City Coun cil declaring an emergency. Upon such declaration, it would be the intent of the City to utilize the Emer gency Disaster Reserve for all costs associated with the City’s response to the emergency situation prior to any other reserve funds. The balance at June 30, 2022 was $2,777,340.

The Capital Improvement/One-Time Initiative Reserve Fund is available for the capital improvement program projects and initiatives of significant importance to the City that have no other dedicated funding source. These projects include improvements to City facilities, parks, and technology. The balance at June 30, 2022 was $4,600,000.

Encumbrances represent commitments related to contracts not yet performed and purchase orders not yet filled. The total encumbrances at June 30, 2022 were $2,158,860.

F. Net Position and Fund Balance Deficits
The City has a deficit net position of $18,675,652 in the CityNet Services Enterprise Fund, which will be funded through additional revenues expected from offering higher margin cable and internet packages and expense reductions. The City also has a deficit net position of $3,463,603 in the Self Insurance Internal Service Fund which will be funded by future cost allocations from other funds.

The City has a deficit fund balance of $170,178 in the Parks and Facilities Capital Improvement Fund and $74,235 in the Federal/State Grants Special Revenue Fund. These will be funded by contributions from other funds and future revenues, respectively.
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

7. RISK MANAGEMENT
The City participates in the PLAN JPA, a joint powers authority established 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 co verage, $25,000,000 excess liability coverage per occurrence, $5,000,000 of catastrophic liability coverage, an d is responsible for paying the claims in excess of the City’s $100,000 self-insuran ce 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-I nsurance 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-insur ed amount or the insurance coverage for any of the past three years. As of June 30, 2022, claims payable are as follows:

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
A. General Information about the Pension Plans and Summary of Balances by Plan The City participates in the following Pension Pl ans (Plans) administered by the California Public Employees Retirement System (CalPERS):

Agent Multiple-Employer Defined Benefit Pension Plans (Miscellaneous Plan) for its Miscellaneous employees.

An agent multiple-employer plan is one in which the assets of the participating government employers are pooled for investment purposes but separate accounts are maintained for each individual employer.

Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Safety Plan) for its Safety employees.

A cost-sharing multiple-employer defined benefit pension plan is a plan in which the pension obligations to the employees of more than one employer are p ooled and pension plan assets can be used to pay benefits of the employees of any employer that provides pensions through the plan.

Claims payable June 30, 2020 4,936,000$
Changes to estimated claims liability 1,329,576
Claims paid (853,576)
Claims payable June 30, 2021 5,412,000
Changes to estimated claims liability 488,707
Claims paid (872,707)
Claims payable June 30, 2022 5,028,000$
Current Portion 1,545,000$
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
B. Actuarial Assumptions and Discount Rate
Actuarial Assumptions – For the measurement period ended June 30, 2021, the total pension liabilities were determined by rolling forward the June 30, 2020 to tal pension liability. The June 30, 2021 total pension liabilities were based on the following actuarial methods and assumptions:

Discount Rate - The discount rate used to measure the total pension liability for each Plan was 7.15%. The projection of cash flows used to determine the discount rate for the Plans assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employ ers will be made at statutorily required rates, actuarially determined. Based on those assumptions, ea ch Plan’s fiduciary net position was projected to be available to make all projected future benefit pa yments 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.

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Morality Rate Table(1)
Post Retirement Benefit Increase

2.50%
Varies by Entry Age and Service
Derived using CalPERS' Membership Data for all Funds
Contract COLA up to 2.5% until
Purchasing Power Protection Allowance Floor
on Purchasin
g Power applies
(1) The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

All CalPERS Plans
6/30/2020
6/30/2021
Entry-Age Normal Cost Method

7.15%
87 199 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
B. Actuarial Assumptions and Discount Rate, Continued
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical and forecasted information for all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

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

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 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 wi th the benefit terms. Investments are reported at fair value.

Asset Class(a)
Current Target
Allocation
Real Return Years
1 - 10(b)
Real Return Years
11+(c)
Public Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% - -0.92%
Total 100%
(b) An expected inflation of 2.0% is used this period.
(c) An expected inflation of 2.92% is used this period. (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. 88 200 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
B. Actuarial Assumptions and Discount Rate, Continued
Below is a summary of the deferred outflows of resources, net pension liabilities and deferred inflows of resources, and pension expense by Plan:

A summary of the changes in net pension liability by plan type as of June 30, 2021 and June 30, 2022 are as follows:

C. CalPERS Miscellaneous Plan
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defined benefit pension plan 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 resoluti on. 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 must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 89 201 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
C. CalPERS Miscellaneous Plan, Continued
The Miscellaneous Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows:

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 contribution for the unfunded liability in the Miscellaneous Plan was $3,783,031 in fiscal year 2022.

Employees Covered – At the measurement date June 30, 2021, the following employees were covered by the benefit terms of the Miscellaneous Plan:

Contributions - Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 90 202 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
C. CalPERS Miscellaneous Plan, Continued
Net Pension Liability - The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pension plan’s fiduciary ne t position. The net pension liability of each of the Plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Changes in Net Pension Liability – The changes in Net Pension Liability for the Miscellaneous Plan are as follows:

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 liability 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:

Total Pension
Liability
Plan
Fiduciary
Net Position
Net Pension
Liability
(Asset)
Balance at June 30, 2020 (Measurement Date) $152,189,169 $103,241,625 $48,947,544 Changes in the year:

Service cost 2,603,128 2,603,128
Interest on the total pension liability 10,739,952 10,739,952 Changes of benefit terms
Changes in assumptions
Differences between actual and expected experience 613,120 613,120 Plan to plan resource movement
Contribution - employer 5,012,295 (5,012,295)
Contribution - employee 1,051,962 (1,051,962)
Net investment income 23,324,110 (23,324,110)
Benefit payments, including refunds of employee contributions (7,789,485) (7,789,485) - Administrative expense (103,132) 103,132
Other Miscellaneous Income/Expense
Net changes 6,166,715 21,495,750 (15,329,035) Balance at June 30, 2021 (Measurement Date) $158,355,884 $124,737,375 $33,618,509 Increase/Decrease
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
C. CalPERS Miscellaneous Plan, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2022, the City recognized pension expense of $2,320,146 for the Miscellaneous Plan. At June 30, 2022, the City reported deferred outflows of resources and defe rred inflows of resources related to pensions from the following sources:

A total of $5,366,996 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred inflows of resources related to pensions will be recognized as a reduction to pension expense (income) as follows:

D. CalPERS Safety Plan
The City’s Safety Plan is part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by CalPERS. PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual 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-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors two rate plans (two police) within the safety risk pool.
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
D. CalPERS Safety Plan, Continued
Plan Description - All qualified permanent and probationary employees are eligible to participate in the City’s Safety Employee Pension Plan, a cost-shari ng multiple-employer defined benefit pension 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 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 must be public employees and beneficiaries.

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

The Safety Plan provisions and benefits in effect at June 30, 2022, are summarized as follows:

CalPERS collects employer contributions for the cost-sharing plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis or can be prepaid in full no later than July 31. The City’s required contribution for the unfunded liability for the Safety Plan was $3,876,670 in fiscal year 2022.

Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 service years 5 service years Benefit payments monthly for life monthly for life
Retirement age 50 - 55 50 - 57
Monthly benefit, as a % of eligible compensation 3.0% 2.0% - 2.7% Required employee contribution rates 9.0% 13.0%
Required employer contribution rates 23.710% 13.130%
Required UAL payment
$3,841,324 $35,346
Safety
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

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

For the measurement period ended June 30, 2021, contributions to the Safety Plan were $5,482,002.

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

As of June 30, 2022, the City reported net pension lia bility for its proportionate share of the net pension liability of the Safety Plan of $34,593,086.

The City’s net pension liability for the Safety Plan is measured as the proportionate share the total net pension liability of the CalPERS Plan. The net pension liability is measured as of June 30, 2021, and the total pension liability for the CalPERS Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 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 pr ojected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability as of June 30, 2020 and 2021 was as follows:
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
D. CalPERS Safety Plan, Continued
For the year ended June 30, 2022, the City recognized pension expense of $7,403,865 for the Safety Plan.

On June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

A total of $6,153,419 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a component of pension expense in the year ended June 30, 2023.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense (income) as follows:

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

8. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
D. CalPERS Safety Plan, Continued
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

9. DEFINED CONTRIBUTION POST-EMPLOYMENT HEALTHCARE PLAN Plan Description - The City of San Bruno contracts with the Teamsters Local #856 Health and Welfare Trust Fund to provide health benefits to both active and retired employees as a defined contribution plan. The City
provides no direct financial contribution towards retiree health benefits; however, due to the fact that retirees and active employees are insured in the same pool it indirectly 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, 2022:

City’s Funding Policy - The Teamsters Local #856 Health and Welfare 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 2021-22 the City’s actual contribution to the Teamsters Local #856 Health and Welfare Fund was $6,540,197, 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 fu nding excess) over a period not to exceed thirty years.
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City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

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. Ex penditures financed by grants are subject to audit by the appropriate grantor government. If expend itures are disallowed due to noncompliance with grantor program regulations, the City may be required to reimburse the grantor government. As of June 30, 2022, some amounts of grant expenditures have not been audited, but the City believes that disallowed expenditures, if any, based on subsequent audits will not have a material effect on any individual governmental funds or the overall financial condition of the City.

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 actions, when finally adjudicated, do not appear to have a materially adverse effect on the financial condition of the City.

12. GOING CONCERN
At June 30, 2022, the CityNet Enterprise Fund had $0 in cash and an accumulated interfund debt to the General Fund of $15,316,895. Additionally, the fund continues to have operating losses of each year, with a loss of $859,995 in the fiscal year 2021-22 and a loss of $904,625 in the prior year. Management continues to take measures to improve revenue collections as well as subscription margins. Additional progress has been made towards continued reduction of operatin g losses and improvement of subscription margins going forward, to be supported by the launch of asset light, state of the art, internet delivered TV by the e n d o f f i s c a l y e a r 2 0 2 3 . T o a c c e l e r a t e r e p a y m e nt of the interfund loan and implement a repayment timeline, an improvement is necessary to the Enterprise’s aging internet and TV delivery technology to make the Enterprise fully competitive, improve its position as a going concern, attract more customers and commence the payback of the loan from the General Fund. This improvement would be accomplished by the rollout of fiber technology. Initial funding for the rollout has been approved by the Council pending presentation of a detailed rollout plan.

At June 30, 2022, the Stormwater Enterprise Fund has losses in operations of $590,107 as compared with $715,807 in the prior year. The fund requires transfer s in from the General Fund to maintain a positive fund balance. Management has evaluated the fund and has come to the conclusion that the charges for services are not adequate for the costs of those services. 97 209 of 369

City of San Bruno
Notes to Basic Financial Statements
For the Year Ended June 30, 2022

13. PRIOR PERIOD ADJUSTMENT
The City recorded a prior period adjustment for a bequest that was received in the year 2020 and held in a trust for the benefit of the City.
98 210 of 369

REQUIRED

SUPPLEMENTARY INFORMATION
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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 32,812,340$ 32,752,340$ 42,335,688$ 9,583,348$ Licenses and permits 6,822,727 6,822,727 5,609,093 (1,213,634) Intergovernmental 8,834,874 9,724,874 11,054,305 1,329,43 1 Charges for services 2,482,032 2,466,733 3,915,518 1,448,785 Fines and forfeitures 1,048,000 1,048,000 612,247 (435,753) Use of money and property 768,822 768,822 (6,745,185 ) (7,514,007) Other revenues 5,923,475 5,923,475 6,579,462 655,987
Total revenues 58,692,270 59,506,971 63,361,128 3,854,157 EXPENDITURES:

Current:

General government 7,484,236 7,702,690 7,945,649 (242,959 )
Public safety 30,354,389 30,512,585 30,356,530 156,055
Public works 1,539,201 1,647,978 1,551,310 96,668
Streets 2,177,457 2,179,621 1,755,168 424,453
Parks and recreation 5,537,061 5,535,476 4,937,774 597,702 Library 2,101,867 2,195,025 2,071,002 124,023
Community and economic development 3,188,841 3,653,183 2,787,248 865,935 Capital outlay 924,000 1,282,553 2,008,149 (725,596)
Total expenditures 53,307,052 54,709,111 53,412,830 1,296,281

REVENUES OVER (UNDER)
EXPENDITURES 5,385,218 4,797,860 9,948,298 5,150,438 OTHER FINANCING SOURCES (USES):

Transfers in 1,719,00
1 2,078,480 5,094,598 3,016,118
Transfers out (3,308,618) (7,017,074) (3,827,888) 3,189,186 Proceeds from sale of property 5,060,000 5,060,000 - (5,060,000) Total other financing sources (uses) 3,470,383 121,406 1,266,710 1,145,304 Net change in fund balances 8,855,601$ 4,919,266$ 11,215,008 6,295,742$ FUND BALANCES:

Beginning of year 35,381,26
1 End of year 46,596,269$
Budgeted Amounts
101

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City of San Bruno
Required Supplementary Information
For the year ended June 30, 2022
Miscellaneous Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Measurement Period 2014 2015 2016

TOTAL PENSION LIABILITY
Service cost 2,202,577 $ 2,097,851 $ 2,139,755 $ Interest 7,873,939 8,305,341 8,778,896 Differences between expected and actual experience - 505,056 934,779 Changes in assumptions - (2,047,078) - Benefit payments, including refunds of employee
contributions (4,768,345) (5,034,556) (5,302,771) Net change in the total pension liability 5,308,171 3,826,614 6,550,659 Total pension liability - beginning 106,268,748 111,576,919 115,403,533 Total pension liability - ending (a) 111,576,919$ 115,403,533$ 121,954,192$

PLAN FIDUCIARY NET POSITION
Contributions - employer 2,379,268$ 2,511,337$ 2,864,024$ Contributions - employee 1,401,279 968,827 995,641 Net investment income 12,458,355 1,866,002 415,562 Plan to plan resource movement - - - Benefit payments, including refunds of employee
contributions (4,768,345) (5,034,556) (5,302,771) Administrative expense - (94,139) (50,953) Other miscellaneous income (expense) - (4) (1,791) Net change in plan fiduciary net position 11,470,557 217,467 (1,080,288) Plan fiduciary net position - beginning 71,916,986 83,387,543 83,605,010 Plan fiduciary net position - ending (b) 83,387,543$ 83,605,010$ 82,524,722$ Net pension liability - ending (a) - (b) 28,189,376$ 31,798,523$ 39,429,470$ Plan fiduciary net position as a percentage of the total pension liability 74.74% 72.45% 67.67%
Covered payroll 11,454,637$ 11,746,858$ 12,768,781$ Net pension liability as a percentage of covered payroll 246.10% 270.70% 308.80% *
Notes to the Schedule:

Fiscal year 2015 was the first year of implementation, additional years will be added as the information becomes available.

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 Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in Assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, and 2020, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts were based on the 7.5% discount rate. 102

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2017 2018 2019 2020 2021
2,531,862$ 2,492,070$ 2,432,199$ 2,514,610$ 2,603,128$ 9,108,648 9,431,890 9,905,673 10,324,053 10,739,952 (667,604) (431,451) 1,352,032 - 613,120 7,626,708 (862,136) - 856,075 - (5,571,094) (6,041,230) (7,198,215) (7,569,113) (7,789,485) 13,028,520 4,589,143 6,491,689 6,125,625 6,166,715 121,954,192 134,982,712 139,571,855 146,063,544 152,189,169 134,982,712$ 139,571,855$ 146,063,544$ 152,189,169$ 158,355,884$ 3,286,539$ 3,493,382$ 4,025,948$ 4,630,765$ 5,012,295$ 1,021,113 1,025,190 1,014,107 1,144,051 1,051,962 9,203,409 7,685,495 6,290,148 5,016,150 23,324,110 - (223) - - - (5,571,094) (6,041,230) (7,198,215) (7,569,113) (7,789,485) (121,842) (140,779) (68,577) (141,202) (103,132) - (267,342) 223 - - 7,818,125 5,754,493 4,063,634 3,080,651 21,495,750 82,524,722 90,342,847 96,097,340 100,160,974 103,241,625 90,342,847$ 96,097,340$ 100,160,974$ 103,241,625$ 124,737,375$ 44,639,865$ 43,474,515$ 45,902,570$ 48,947,544$ 33,618,509$

66.93% 68.85% 68.57% 67.84% 78.77%
12,6
61,824$ 12,736,637$ 13,803,211$ 14,427,436$ 14,301,123$ 352.55% 341.33% 332.55% 339.27% 235.08%
103

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City of San Bruno
Required Supplementary Information
For the year ended June 30, 2022
Schedule of Pension Plan Contributions - Last 10 Years* 2015 2016 2017
Miscellaneous Plan
Contractually required contribution 2,379,268$ 2,864,024$ 3,286,539$ Contributions in relation to the
contractually required contributions (2,379,268) (2,864,024) (3,286,539) Contribution deficiency (excess) -$ -$ -$ Covered payroll 11,746,858$ 12,768,781$ 12,661,824$ Contributions as a percentage of covered payroll 20.25% 22.43% 25.96% Notes to Schedule:

Valuation date 6/30/2012 6/30/2013 6/30/2014
Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Remaining amortization period 15 years as of valuation date Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
*
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021 - 22 were derived from the June 30, 2019 funding valuation report.

Entry Age Normal Cost Method
Level percentage of payroll, closed
5-year smoothed market

2.75% for 2015 to 2019, 2.625% for 2020 and 2.50% for 2021 to 2022 Varies by entry age and service

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and 7.00% for 2021 and 2022, net of pension plan investment expense, including inflation.

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

The probabilities of mortality are based on the CalPERS Experience Study. Pre- retirement and Post-retirement mortality rate include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019 to 2022, pre-retirement age.

Fiscal year 2015 was the first year of implementation, additional years will be presented as the information becomes available.
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2018 2019 2020 2021 2022
3,493,382$ 4,025,948$ 4,630,765$ 5,012,295$ 5,366,996$ (3,493,382) (4,025,948) (4,630,765) (5,012,295) (5,366,996) -$ -$ -$ -$ -$ 12,736,637$ 13,803,211$ 14,427,436$ 14,301,123$ 14,353,672$

27.43% 29.17% 32.10% 35.05% 37.39%
6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
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City of San Bruno
Required Supplementary Information
For the year ended June 30, 2022
Schedule of the City's Proportionate Share of the Net Pension Liability - Last Ten Fiscal Years Safety Plan
Fiscal Year End: 6/30/2015 6/30/2016 6/30/2017
Measurement Date 6/30/2014 6/30/2015 6/30/2016
City's proportion of the net pension liability 0.00000% 0.43667% 0.44803% City's proportionate share of the net pension liability -$ 29,972,706$ 38,768,137 $ City's covered payroll (plan year) 8,296,958$ 8,733,422 $ 9,215,379 $ City's proportionate share of the net pension liability as a percentage of its covered payroll 0.00% 343.20% 420.69% Fiduciary net position as a percentage of the
total pension liability 79.82% 78.40% 74.06%
Notes to the schedule:
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown.

The CalPERS mortality assumptions were adjusted in fiscal year 2019.

The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from

7.65% to 7.15% in fiscal year 2018.
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6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021

0.44960% 0.46924% 0.47762% 0.49200% 0.63963%
44,587,858$ 45,216,872 $ 48,942,165 $ 53,531,797 $ 34,593,086 $ 9,360,496$ 8,768,759 $ 9,259,344 $ 9,977,457 $ 9,800,218 $ 476.34% 515.66% 528.57% 536.53% 352.98%

73.31% 75.26% 75.26% 75.10% 88.29%
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City of San Bruno
Required Supplementary Information
For the year ended June 30, 2022
Schedule of Pension Plan Contributions - Last 10 Years* 2015 2016 2017
Safety Plan
Contractually required contribution (actuarially determined) 2,600,052$ 1,681,684 $ 3,203,722 $ Contributions in relation to contractually required contributions (2,600,052) (1,681,684) (3,203,722) Contribution deficiency (excess) - $ - $ - $ Covered payroll 8,733,422$ 9,215,379$ 9,360,496$ Contributions as a percentage of covered payroll 29.77% 18.25% 34.23% Notes to the Schedule:
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown.

Methods and assumptions used to determine contribution rates:

Valuation date (for contractually required contribution): 6/30/2012 6/30/2013 6/30/2014 Actuarial cost method: Entry Age Entry Age Entry Age
Amortization method: (1) (1) (1)
Assets valuation method: 15 Year
Smoothed Market
Method
Market Value Market Value
Inflation: 2.75% 2.75% 2.75%
Salary increases: (2) (2) (2)
Investment rate of return: 7.50% 7.50% 7.50%
Retirement age: (3) (3) (3)
Mortality: (4) (4) (4)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) 50 for all plans, with the exception of 52 for Miscellan (4) Mortality assumptions are based on mortality rates r CalPERS Board.
108

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2018 2019 2020 2021 2022
3,682,068$ 4,282,040$ 4,978,130$ 5,482,002$ 6,153,419$ (3,682,068) (4,282,040) (4,978,130) (5,482,002) (6,153,419) -$ -$ -$ -$ -$ 8,768,759$ 9,259,344$ 9,977,457$ 9,800,218$ 11,785,003$

41.99% 46.25% 49.89% 55.94% 52.21%
6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Entry Age Entry Age Entry Age Entry Age Entry Age
(1) (1) (1) (1) (1)
Market Value Market Value Market Value Market Value Market Value

2.75% 2.75% 2.63% 2.50% 2.50%
(2) (2) (2) (2) (2)

7.50% 7.375% 7.25% 7.00% 7.00%
(3) (3) (3) (3) (3)
(4) (4) (4) (4) (4)
neous PEPRA 2%@62
resulting from the most recent CalPERS Experience Study adopted by the 109

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SUPPLEMENTARY INFORMATION
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City of San Bruno
Combining Balance Sheet
General Fund
June 30, 2022
General
Fund
Totals
ASSETS
Cash and investments 26,884,792$ 2,651,532 $ 29,536,324 $ Cash and investments with fiscal agent 50,496 - 50,496
Receivables:

Taxes 4,334,326 764,978 5,099,304
Interest 76,483 - 76,483
Loans 749,809 - 749,809
Other 5,461,012 - 5,461,012
Advances to other funds 15,316,895 - 15,316,895
Total assets 52,873,813$ 3,416,510$ 56,290,323$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 5,238,378 - 5,238,378 Unearned revenue 1,944,239 - 1,944,239
Other liabilities 440,500 - 440,500
Total liabilities 9,694,054 - 9,694,054 Fund Balances:

Nonspendable 15,316,895 - 15,316,895
Assigned 26,045,126 - 26,045,126
Unassigned 1,817,738 3,416,510 5,234,248
Total fund balances 43,179,759 3,416,510 46,596,269 Total liabilities, deferred inflows of
resources and fund balances 52,873,813$ 3,416,510$ 56,290,323$ General Fund
Operating and
Reserves Measure G
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City of San Bruno
Combining Statement of Revenues, Expenditures and Changes in Fund Balances General Fund
For the year ended June 30, 2022
General
Fund
Totals
REVENUES:

Taxes 38,348,040 $ 3,987,648 $ - $ 42,335,688$ Licenses and permits 5,609,093 - - 5,609,093
Intergovernmental 11,054,305 - - 11,054,305
Charges for services 3,915,518 - - 3,915,518
Fines and forfeitures 612,247 - - 612,247
Use of money and property (6,745,185) - - (6,745,185 )
Other revenues 6,579,462 - - 6,579,462
Total revenues 59,373,480 3,987,648 - 63,361,128 EXPENDITURES:

Current:

General government 7,945,649 - - 7,945,649
Public safety 30,356,530 - - 30,356,530
Public works 1,551,310 - - 1,551,310
Streets 1,755,168 - - 1,755,168
Parks and recreation 4,937,774 - - 4,937,774
Library 2,071,002 - - 2,071,002
Community and economic development 2,787,248 - - 2,787,248 Capital outlay 2,008,149 - - 2,008,149
Total expenditures 53,412,830 - - 53,412,830

REVENUES OVER (UNDER)
EXPENDITURES 5,960,650 3,987,648 - 9,948,298 OTHER FINANCING SOURCES (USES):

Transfers in 6,884,598 - (1,790,000
) 5,094,598
Transfers out (3,827,888) (1,790,000) 1,790,000 (3,827,888 ) Total other financing sources (uses) 3,056,710 (1,790,000) - 1,266,710 Net change in fund balances 9,017,360 2,197,648 - 11,215,008 FUND BALANCES:

Beginning of year 34,162,399 1,218,862 - 35,381,26
1 End of year 43,179,759$ 3,416,510$ -$ 4 6,596,269$ General Fund
Operating and
Reserves Measure G
Intra-Fund
Transactions
Elimination
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City of San Bruno
Combining Statement of Revenues, Expenditures and Changes in Fund Balances General Fund
For the year ended June 30, 2022
Original Final
Budget Budget Actual Variance
REVENUES:

Taxes 29,303,340$ 29,243,340$ 38,348,040$ 9,104,700$ Licenses and permits 6,822,727 6,822,727 5,609,093 (1,213,634 ) Intergovernmental 8,834,874 9,724,874 11,054,305 1,329,43 1 Charges for services 2,482,032 2,466,733 3,915,518 1,448,785 Fines and forfeitures 1,048,000 1,048,000 612,247 (435,753 ) Use of money and property 768,822 768,822 (6,745,185 ) (7,514,007) Other revenues 5,923,475 5,923,475 6,579,462 655,987
Total revenues 55,183,270 55,997,971 59,373,480 3,375,509 EXPENDITURES:

Current:

General government 7,484,236 7,702,690 7,945,649 (242,959 )
Public safety 30,354,389 30,512,585 30,356,530 156,055
Public works 1,539,201 1,647,978 1,551,310 96,668
Streets 2,177,457 2,179,62 1 1,755,168 424,453
Parks and recreation 5,537,061 5,535,476 4,937,774 597,702 Library 2,101,867 2,195,025 2,071,002 124,023
Community and economic development 3,188,841 3,653,183 2,787,248 865,935 Capital outlay 924,000 1,282,553 2,008,149 (725,596 )
Total expenditures 53,307,052 54,709,111 53,412,830 1,296,281

REVENUES OVER (UNDER)
EXPENDITURES 1,876,218 1,288,860 5,960,650 4,671,790 OTHER FINANCING SOURCES (USES):

Transfers in 1,719,00
1 2,078,480 6,884,598 4,806,118
Transfers out (3,068,618) (5,227,074) (3,827,888) 1,399,186 Proceeds from sale of property 5,060,000 5,060,000 - (5,060,000 ) Total other financing sources (uses) 3,710,383 1,911,406 3,056,710 1,145,304 Net change in fund balances 5,586,601$ 3,200,266 $ 9,017,360 5,817,094 $ FUND BALANCES:

Beginning of year 34,162,399
End of year 43,179,759$
General Fund Operating and Reserves
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Intrafund
Eliminations
Original Final Original Final
Budget Budget Actual Variance Actual Budget Budget Actual Variance 3,509,000$ 3,509,000$ 3,987,648$ 478,648$ -$ 32,812,340$ 32,752,340$ 42,335,688$ 9,583,348$ ----- 6 ,822,727 6 ,822,727 5 ,609,093 ( 1,213,634)
----- 8 ,834,874 9 ,724,874 1 1,054,305 1 ,329,431
----- 2 ,482,032 2 ,466,733 3 ,915,518 1 ,448,785
----- 1 ,048,000 1 ,048,000 612,247 (435,753 )
----- 768,822 768,822 (6,745,185 ) (7,514,007)
----- 5 ,923,475 5 ,923,475 6 ,579,462 655,987
3,509,000 3,509,000 3,987,648 478,648 - 58,692,270 59,506,971 63,361,128 3,854,157 ----- 7 ,484,236 7 ,702,690 7 ,945,649 ( 242,959)
----- 3 0,354,389 3 0,512,585 3 0,356,530 156,055
----- 1 ,539,201 1,647,978 1,551,310 96,668
----- 2 ,177,457 2 ,179,621 1,755,168 424,453
----- 5 , 5 3 7 , 0 6 1 5,535,476 4,937,774 597,702
----- 2 ,101,867 2 ,195,025 2 ,071,002 124,023
----- 3 ,188,841 3,653,183 2,787,248 865,935
----- 924,000 1,282,553 2,008,149 (725,596 )
- - - - - 53,307,052 54,709,111 53,412,830 1,296,281 3,509,000 3,509,000 3,987,648 478,648 - 5,385,218 4,797,860 9,948,298 5,150,438 - - - - (1,790,000 ) 1,719,001 2,078,480 5,094,598 3,016,118 (240,000) (1,790,000) (1,790,000) - 1,790,000 (3,308,618 ) (7,017,074) (3,827,888) 3,189,186 ----- 5 , 0 6 0 , 0 0 0 5 , 0 6 0 , 0 0 0- ( 5 , 0 6 0 , 0 0 0 ) (240,000) (1,790,000) (1,790,000) - - 3,470,383 121,406 1,266,710 1,145,304 3,269,000$ 1,719,000 $ 2,197,648 478,648 $ - 8,855,601$ 4,919,266 $ 11,215,008 6,295,742 $ 1,218,862 - 35,381,26 1
3,416,510$ -$ 46,596,269$
Measure G General Fund Totals
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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parks and Facilities Capital Improvement
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services -$ -$ 5,800$ 5,800$ Other revenues - 9,561,032 10,192,085 631,053
Total revenues - 9,561,032 10,197,885 636,853 EXPENDITURES:

Current:

Capital outlay - 37,756,158 13,822,599 23,933,559
Total expenditures - 37,756,158 13,822,599 23,933,559

REVENUES OVER (UNDER)
EXPENDITURES - (28,195,126) (3,624,714) 24,570,412 OTHER FINANCING SOURCES (USES):

Transfers in - 2,098,962 1,335,336 (763,626
)
Transfers out - (193,490) (691,974) (498,484)
Total other financing sources (uses) - 1,905,472 643,362 (1,262,110) Net change in fund balances -$ (26,289,654)$ (2,981,352) 23,308,302$ FUND BALANCES:

Beginning of year 2,811,174
End of year
(170,178)$
Budgeted Amounts
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NONMAJOR GOVERNMENTAL FUNDS
Nonmajor Special 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 street maintenance purposes as defined in sections 2103, 2105, 2106, 2107.5 of the Streets and Highway Code.

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.

Bequests – Accounts for funds bequested to the City.

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 pay 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 Fund:

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.

Debt Service Fund:

General – Accounts for funds related to the 2011 and 2017 fire apparatus lease purchase, 2013 Pension Obligation Bond, and 2018 router lease purchase principal and interest payments. 119

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City of San Bruno
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022 (with comparative totals for June 30, 2021) ASSETS
Cash and investments 6,894,472$ 77,839 $ - $ 218,699$ C a s h a n d i n v e s t m e n t s w i t h f i s c a l a g e n t ---- Receivables:

Taxes - - - 235,859
Interest ----
Other - 79,822 107,448 -
Other assets ----
Total assets 6,894,472$ 157,661 $ 107,448 $ 454,558 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 10,000 15,488 - - Due to other funds ----
Deposits payable 3,492,518 - - -
Unearned revenue ----
Advances from other funds - - 98,449 -
Total liabilities 3,502,518 15,488 98,449 - Deferred Inflows of Resources
Unavailable revenue - - 83,234 - Total deferred inflows of resources - - 83,234 - Fund Balances:

Restricted 3,391,954 142,173 - 454,558
Unassigned - - (74,235) -
Total fund balances 3,391,954 142,173 (74,235) 454,558 Total liabilities, deferred inflows of
resources and fund balances 6,894,472$ 157,661$ 107,448$ 454,558$ Special Revenue Funds
In-Lieu Agency on Aging
Federal/State
Grants Gas Tax
120

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602,438$ 145,343 $ 395,264 $ 2,356,940 $ - $ 184,372$ ------
------
------
--- 4 2,483--
---- 3 ,177,900-
602,438$ 145,343$ 395,264$ 2,399,423$ 3,177,900$ 184,372$ 21,840 - - 9,24
1 --
------
------
- - 64,358 - - -
------
21,840 - 64,358 9,241 - - - - - - 3,177,900 - - - - - 3,177,900 - 580,598 145,343 330,906 2,390,182 - 184,372
------
580,598 145,343 330,906 2,390,182 - 184,372 602,438$ 145,343 $ 395,264 $ 2,399,423 $ 3,177,900 $ 184,372 $ Special Revenue Funds
Police Asset Seizure Police
SB 322
Recycling/Litter
Clean-up Restricted Revenues Street Bequests
121

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City of San Bruno
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments 700,649$ 154,419 $ 790,557 $ 913,26 1$ C a s h a n d i n v e s t m e n t s w i t h f i s c a l a g e n t ---- Receivables:

Taxes ----
Interest ----
Other -1 ,021 113,918 -
Other assets ----
Total assets 700,649$ 155,440 $ 904,475 $ 913,261 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities ----
Due to other funds ----
Deposits payable ----
Unearned revenue ----
Advances from other funds ----
Total liabilities - - - - Deferred Inflows of Resources
Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances:

Restricted 700,649 155,440 904,475 913,26 1
Unassigned ----
Total fund balances 700,649 155,440 904,475 913,261 Total liabilities, deferred inflows of
resources and fund balances 700,649$ 155,440$ 904,475$ 913,261$ Special Revenue Funds
City as Successor
Housing Agency Impact Fees
Measure A
Transportation Tax
Disaster Recovery
Fund
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Capital Debt
Projects Fund Service Fund
2022 2021
773,296$ 6,878,126 $ - $ 21,085,675$ 22,852,217 $ - - 196 196 5
108,482 - - 344,341 275,832
---- 2 , 3 3 3
- 23,410 - 368,102 541,028
- - - 3,177,900 -
881,778$ 6,901,536 $ 196 $ 24,976,214$ 23,671,415 $ - 1,024,102 - 1,080,67
1 103,092
---- 2 7 , 1 3 5
- - - 3,492,518 3,492,518
- - - 64,358 11,050
- - - 98,449 -
- 1,024,102 - 4,735,996 3,633,795 - - - 3,261,134 83,234 - - - 3,261,134 83,234 881,778 5,877,434 196 17,053,319 19,971,314
--- ( 7 4 , 2 3 5 ) (16,928)
881,778 5,877,434 196 16,979,084 19,954,386 881,778$ 6,901,536 $ 196 $ 24,976,214$ 23,671,415 $ Totals
Nonmajor FundsStreet Improvement
Capital Projects
Fund General
Measure W
Transportation Tax
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City of San Bruno
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022 (with comparative totals for June 30, 2021) REVENUES:

Taxes -$ - $ - $ - $ Licenses and permits ----
Intergovernmental - 191,608 61,172 1,939,872
Charges for services ----
Fines and forfeitures ----
Use of money and property 30,189 592 - 10,784
Other revenues (3,173,625) 67,138 - -
Total revenues (3,143,436) 259,338 61,172 1,950,656 EXPENDITURES:

Current:

General government ----
Public safety - - 107,734 -
Public works ----
Streets --- 2 ,711
Parks and recreation - 221,489 - -
Library - - 10,745 -
Community and economic development 40,000 - - -
Capital outlay ----
Debt service:

Principal ----
Interest and fiscal charges ----
Total expenditures 40,000 221,489 118,479 2,711

REVENUES OVER (UNDER)
EXPENDITURES (3,183,436) 37,849 (57,307) 1,947,945 OTHER FINANCING SOURCES (USES):

Transfers in 1,070 - - -
Transfers out (375,000
) 6,687 - (2,489,467)
Capital contributions ----
Proceeds from sale of property ----
Loss on retirement of capital assets ----
Proceeds from long-term debt ----
Total other financing sources (uses) (373,930) 6,687 - (2,489,467) Special item - - - - Net change in fund balances (3,557,366) 44,536 (57,307) (541,522) FUND BALANCES:

Beginning of year 6,949,320 97,637 (16,928
) 996,080
End of year 3,391,954$ 142,173$ (74,235)$ 454,558$ Special Revenue Funds
In-Lieu Agency on Aging
Federal/State
Grants Gas Tax
124

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-$ - $ - $ - $ - $ - $ - - - 448,571 --
- 161,285 11,435 - - -
- - - 75,88 1 --
171,668 -----
3,583 1,054 2,308 16,817 - 1,182
- - 111,69 1 141,827 - -
175,251 162,339 125,434 683,096 - 1,182 - - - 74,721 --
227,579 - - 1,863 - -
------
- - 112,236 - - -
--- 5 , 0 2 6--
- - - 12,289 - -
- - - 11,743 - -
4 , 7 4 5-----
------
------
232,324 - 112,236 105,642 - - (57,073) 162,339 13,198 577,454 - 1,182 ------
- (200,000
) - (370,336) -( 75,000)
------
------
------
------
- (200,000) - (370,336) - (75,000) - - - - - - (57,073) (37,661) 13,198 207,118 - (73,818) 637,67
1 183,004 317,708 2,183,064 - 258,190
580,598$ 145,343$ 330,906$ 2,390,182$ -$ 184,372$ Special Revenue Funds
Police Asset Seizure Police
SB 322
Recycling/Litter
Clean-up Restricted Revenues Street Bequests
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Taxes -$ - $ 1,357,780$ - $ Licenses and permits - 35,937 - -
Intergovernmental ----
Charges for services ----
Fines and forfeitures ----
Use of money and property - 927 13,610 -
Other revenues ----
Total revenues - 36,864 1,371,390 - 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 - 36,864 1,371,390 - OTHER FINANCING SOURCES (USES):

Transfers in - - 265,095 -
Transfers out - - (1,838,240
) -
Capital contributions ----
Proceeds from sale of property ----
Loss on retirement of capital assets ----
Proceeds from long-term debt ----
Total other financing sources (uses) - - (1,573,145) - Special item - - - - Net change in fund balances - 36,864 (201,755) - FUND BALANCES:

Beginning of year 700,649 118,576 1,106,230 913,26
1 End of year 700,649$ 155,440$ 904,475$ 913,261$ Special Revenue Funds
City as Successor
Housing Agency Impact Fees
Measure A
Transportation Tax
Disaster Recovery
Fund
126

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Capital Debt
Projects Fund Service Fund
2022 2021
563,437$ -$ -$ 1,921,217$ 3,315,905$ - - - 484,508 220,832
- 44,714 - 2,410,086 1,398,870
- - - 75,881 -
- - - 171,668 101,78 1
5,500 - 196 86,742 97,912
- 89,825 - (2,763,144) 235,966
568,937 134,539 196 2,386,958 5,371,266 - - - 74,721 42,464
- - - 337,176 539,122
-----
- - - 114,947 73,236
- - - 226,515 193,349
- - - 23,034 26,706
- - - 51,743 132,793
- 2,741,795 - 2,746,540 1,533,565
- - 1,357,15
1 1,357,151 1,398,135
- - 277,303 277,303 315,09 1
- 2,741,795 1,634,454 5,209,130 4,254,461 568,937 (2,607,256) (1,634,258) (2,822,172) 1,116,805 - 3,752,707 1,634,449 5,653,321 7,579,731
(200,000) (265,095) (1,600,000) (7,406,451) (7,973,198) -----
-----
-----
- - 1,600,000 1,600,000 -
(200,000) 3,487,612 1,634,449 (153,130) (393,467) - - - - - 368,937 880,356 191 (2,975,302) 723,338 512,84
1 4,997,078 5 19,954,386 19,231,048
881,778$ 5,877,434$ 196$ 16,979,084$ 19,954,386$ Nonmajor Funds
Measure W
Transportation Tax
Street Improvement
Capital Projects
Fund General
Totals
127

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual In-Lieu
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 50,000$ 50,000$ 30,189$ (19,811)$ Other revenues - - (3,173,625) (3,173,625)
Total revenues 50,000 50,000 (3,143,436) (3,193,436) EXPENDITURES:

Current:

Community and economic development 112,350 112,350 40,000 72,350 Total expenditures 112,350 112,350 40,000 72,350

REVENUES OVER (UNDER)
EXPENDITURES (62,350) (62,350) (3,183,436) (3,121,086) OTHER FINANCING SOURCES (USES):

Transfers in - 1,070 1,070 -
Transfers out -
(375,000) (375,000) -
Total other financing sources (uses) - (373,930) (373,930) - Net change in fund balances (62,350)$ (436,280)$ (3,557,366) (3,121,086)$ FUND BALANCES:

Beginning of year 6,949,320
End of year 3,391,954
$
Budgeted Amounts
128

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Agency on Aging
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 133,587$ 133,587$ 191,608$ 58,021$ Use of money and property 300 300 592 292
Other revenues 61,500 61,500 67,138 5,638
Total revenues 195,387 195,387 259,338 63,951 EXPENDITURES:

Current:

Parks and recreation 133,587 133,587 221,489 (87,902
)
Total expenditures 133,587 133,587 221,489 (87,902)

REVENUES OVER (UNDER)
EXPENDITURES 61,800 61,800 37,849 (23,951) OTHER FINANCING SOURCES (USES):

Transfers out
(61,500) (61,500) 6,687 68,187
Total other financing sources (uses) (61,500) (61,500) 6,687 68,187 Net change in fund balances 300$ 300$ 44,536 44,236$ FUND BALANCES:

Beginning of year 97,637
End of year 142,173
$
Budgeted Amounts
129

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Federal/State Grants
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental -$ 53,745$ 61,172$ 7,427$ Total revenues - 53,745 61,172 7,427 EXPENDITURES:

Current:

Public safety - 56,075 107,734 (51,659
)
Library - - 10,745 (10,745 )
Total expenditures - 56,075 118,479 (62,404)

REVENUES OVER (UNDER)
EXPENDITURES - (2,330) (57,307) (54,977) Net change in fund balances -$ (2,330)$ (57,307) (54,977)$ FUND BALANCES:

Beginning of year
(16,928)
End of year (74,235)$
Budgeted Amounts
130

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 1,857,402$ 1,857,402$ 1,939,872$ 82,470$ Use of money and property 5,200 5,200 10,784 5,584
Total revenues 1,862,602 1,862,602 1,950,656 88,054 EXPENDITURES:

Current:

Streets 2,800 2,800 2,71
1 89
Total expenditures 2,800 2,800 2,711 89

REVENUES OVER (UNDER)
EXPENDITURES 1,859,802 1,859,802 1,947,945 88,143 OTHER FINANCING SOURCES (USES):

Transfers out (850,000
) (2,489,467) (2,489,467) -
Total other financing sources (uses) (850,000) (2,489,467) (2,489,467) - Net change in fund balances 1,009,802$ (629,665) $ (541,522) 88,143 $ FUND BALANCES:

Beginning of year 996,080
End of year 454,558
$
Budgeted Amounts
131

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police Asset Seizure
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines and forfeitures 203,000$ 203,000$ 171,668$ (31,332)$ Use of money and property 5,000 5,000 3,583 (1,417)
Total revenues 208,000 208,000 175,251 (32,749) EXPENDITURES:

Current:

Public safety 227,882 287,309 227,579 59,730
Capital outlay - - 4,745 (4,745
)
Total expenditures 227,882 287,309 232,324 54,985

REVENUES OVER (UNDER)
EXPENDITURES (19,882) (79,309) (57,073) 22,236 Net change in fund balances (19,882)$ (79,309)$ (57,073) 22,236$ FUND BALANCES:

Beginning of year 637,671
End of year 580,598$
Budgeted Amounts
132

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 140,000$ 140,000$ 161,285$ 21,285$ Use of money and property 1,600 1,600 1,054 (546)
Total revenues 141,600 141,600 162,339 20,739 OTHER FINANCING SOURCES (USES):

Transfers out (200,000
) (200,000) (200,000) -
Total other financing sources (uses) (200,000) (200,000) (200,000) - Net change in fund balances (58,400)$ (58,400) $ (37,661) 20,739 $ FUND BALANCES:

Beginning of year 183,004
End of year 145,343
$
Budgeted Amounts
133

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual SB 322 Recycling/Litter Clean-up
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 11,500$ 11,500$ 11,435$ (65)$ Use of money and property 3,500 3,500 2,308 (1,192)
Other revenues 85,694 85,694 111,69 1 25,997
Total revenues 100,694 100,694 125,434 24,740 EXPENDITURES:

Current:

Streets 102,207 102,207 112,236 (10,029
)
Total expenditures 102,207 102,207 112,236 (10,029)

REVENUES OVER (UNDER)
EXPENDITURES (1,513) (1,513) 13,198 14,711 Net change in fund balances (1,513)$ (1,513)$ 13,198 14,711$ FUND BALANCES:

Beginning of year 317,708
End of year 330,906$
Budgeted Amounts
134

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Restricted Revenues
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Licenses and permits 184,000$ 184,000$ 448,571$ 264,571$ Charges for services - - 75,881 75,881
Use of money and property 14,000 14,000 16,817 2,817
Other revenues 58,000 58,000 141,827 83,827
Total revenues 256,000 256,000 683,096 427,096 EXPENDITURES:

Current:

General government 20,100 79,983 74,72
1 5,262
Public safety - - 1,863 (1,863)
Parks and recreation 8,000 8,000 5,026 2,974
Library 8,100 8,100 12,289 (4,189)
Community and economic development 31,400 31,400 11,743 19,657 Total expenditures 67,600 127,483 105,642 21,841

REVENUES OVER (UNDER)
EXPENDITURES 188,400 128,517 577,454 448,937 OTHER FINANCING SOURCES (USES):

Transfers out - (370,336) (370,336) -
Total other financing sources (uses) - (370,336) (370,336) - Net change in fund balances 188,400$ (241,819)$ 207,118 448,937$ FUND BALANCES:

Beginning of year 2,183,064
End of year 2,390,182$
Budgeted Amounts
135

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 2,800$ 2,800$ 1,182$ (1,618)$ Total revenues 2,800 2,800 1,182 (1,618) OTHER FINANCING SOURCES (USES):

Transfers out -( 7 5 , 0 0 0
) (75,000) -
Total other financing sources (uses) - (75,000) (75,000) - Net change in fund balances 2,800$ (72,200)$ (73,818) (1,618) $ FUND BALANCES:

Beginning of year 258,190
End of year 184,372
$
Budgeted Amounts
136

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual City as Successor Housing Agency
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Net change in fund balances -$ -$ - -$ FUND BALANCES:

Beginning of year 700,649
End of year 700,649$
Budgeted Amounts
137

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Impact Fees
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Licenses and permits 61,000$ 61,000$ 35,937$ (25,063)$ Use of money and property 500 500 927 427
Total revenues 61,500 61,500 36,864 (24,636) Net change in fund balances 61,500$ 61,500$ 36,864 (24,636)$ FUND BALANCES:

Beginning of year 118,576
End of year 155,440
$
Budgeted Amounts
138

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure A Transportation Tax
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 994,813$ 994,813$ 1,357,780$ 362,967$ Use of money and property 6,000 6,000 13,610 7,610
Total revenues 1,000,813 1,000,813 1,371,390 370,577 OTHER FINANCING SOURCES (USES):

Transfers in - 225,252 265,095 39,843
Transfers out - (1,838,240
) (1,838,240) -
Total other financing sources (uses) - (1,612,988) (1,573,145) 39,843 Net change in fund balances 1,000,813$ (612,175) $ (201,755) 410,420 $ FUND BALANCES:

Beginning of year 1,106,230
End of year 904,475$
Budgeted Amounts
139

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Disaster Recovery Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
EXPENDITURES:

Current:

General government - 12,767 - 12,767
Total expenditures - 12,767 - 12,767 Net change in fund balances -$ (12,767)$ - 12,767$ FUND BALANCES:

Beginning of year 913,26
1 End of year 913,261$
Budgeted Amounts
140

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure W Transportation Tax
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 441,800$ 441,800$ 563,437$ 121,637$ Use of money and property 3,000 3,000 5,500 2,500
Total revenues 444,800 444,800 568,937 124,137 OTHER FINANCING SOURCES (USES):

Transfers out - (200,000
) (200,000) -
Total other financing sources (uses) - (200,000) (200,000) - Net change in fund balances 444,800$ 244,800 $ 368,937 124,137 $ FUND BALANCES:

Beginning of year 512,84
1 End of year 881,778$
Budgeted Amounts
141

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Improvement Capital Projects Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 869,067$ 3,692,827$ 44,714$ (3,648,113)$ Other revenues 483,996 586,433 89,825 (496,608)
Total revenues 1,353,063 4,279,260 134,539 (4,144,721) EXPENDITURES:

Current:

Capital outlay - 14,870,958 2,741,795 12,129,163
Total expenditures - 14,870,958 2,741,795 12,129,163

REVENUES OVER (UNDER)
EXPENDITURES 1,353,063 (10,591,698) (2,607,256) 7,984,442 OTHER FINANCING SOURCES (USES):

Transfers in - 5,782,707 3,752,707 (2,030,000
)
Transfers out - (225,252) (265,095) (39,843)
Total other financing sources (uses) - 5,557,455 3,487,612 (2,069,843) Net change in fund balances 1,353,063$ (5,034,243)$ 880,356 5,914,599$ FUND BALANCES:

Beginning of year 4,997,078
End of year 5,877,434
$
Budgeted Amounts
142

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City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property -$ -$ 196$ 196$ Total revenues - - 196 196 EXPENDITURES:

Current:

Debt service:

Principal 1,357,15
1 1,357,151 1,357,151 -
Interest and fiscal charges 268,028 268,028 277,303 (9,275) Total expenditures 1,625,179 1,625,179 1,634,454 (9,275)

REVENUES OVER (UNDER)
EXPENDITURES (1,625,179) (1,625,179) (1,634,258) (9,079) OTHER FINANCING SOURCES (USES):

Transfers in 1,625,179 1,625,179 1,634,449 9,270
Transfers out - - (1,600,000 ) (1,600,000)
Proceeds from long-term debt - - 1,600,000 1,600,000
Total other financing sources (uses) 1,625,179 1,625,179 1,634,449 (1,590,730) Net change in fund balances -$ - $ 191 (1,599,809)$ FUND BALANCES:

Beginning of year 5
End of year 19
6$
Budgeted Amounts
143

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INTERNAL SERVICE FUNDS
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 City’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. 145

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City of San Bruno
Combining Statement of Net Position
Internal Service Funds
June 30, 2022 (with comparative totals for June 30, 2021) ASSETS
Current Assets:

Cash and investments 252,498 $ 1,568,538 $ 235,246 $ 725,235 $ Cash and investments with fiscal agent - 91,119 - - Receivables:

Accounts - - - - Total current assets 252,498 1,659,657 235,246 725,235 Noncurrent:

Capital assets:

Depreciable capital assets - - 24,640 27,853 Accumulated depreciation - - (24,640) (26,526) Net capital assets - - - 1,327 Total noncurrent assets - - - 1,327 Total assets 252,498 1,659,657 235,246 726,562

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 52,395 95,260 42,736 199,341 Compensated absences - current 1,229 - 11,338 11,369 Claims and judgements - current - 1,545,000 - - Total current liabilities 53,624 1,640,260 54,074 210,710 Noncurrent liabilities:

Compensated absences 2,309 - 27,168 40,339 Claims payable - 3,483,000 - - Total noncurrent liabilities 2,309 3,483,000 27,168 40,339 Total liabilities 55,933 5,123,260 81,242 251,049

NET POSITION
Net investment in capital assets - - - 1,327 Unrestricted 196,565 (3,463,603) 154,004 474,186 Total net position 196,565$ (3,463,603)$ 154,004$ 475,513$ Central Garage
Facilities
Maintenance
Technology
DevelopmentSelf-Insurance
146

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2022 2021
2,781,517$ 2,593,440$
91,119 91,119
- 34,682
2,872,636 2,719,241
52,493 52,493
(51,166) (47,188)
1,327 5,305
1,327 5,305
2,873,963 2,724,546
389,732 435,585
23,936 21,275
1,545,000 1,072,204
1,958,668 1,529,064
69,816 61,042
3,483,000 4,339,796
3,552,816 4,400,838
5,511,484 5,929,902
1,327 5,305
(2,638,848) (3,210,661)
(2,637,521)$ (3,205,356)$
Totals
147

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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, 2022 (with comparative totals for June 30, 2021) OPERATING REVENUES:

Charges for services:

Other service charges 857,154$ 2,928,085 $ 907,071 $ 1,805,664 $ Other operating revenue - - - - Total operating revenues 857,154 2,928,085 907,071 1,805,664 OPERATING EXPENSES:

Central garage 744,855 - - -
Insurance expenses - 2,438,620 - - Technology support - - 1,268,418 - Facilities maintenance - - - 1,917,707 Depreciation and amortization - - - 3,978 Total operating expenses 744,855 2,438,620 1,268,418 1,921,685 Operating income (loss) 112,299 489,465 (361,347) (116,021) CONTRIBUTIONS AND TRANSFERS:

Transfers in 25,000 - 258,939 159,500
Total contributions and transfers 25,000 - 258,939 159,500 Change in net position 137,299 489,465 (102,408) 43,479 NET POSITION:

Beginning of year 59,266 (3,953,068) 256,412 432,034 End of year 196,565$ (3,463,603)$ 154,004 $ 475,513 $ Central Garage Self-Insurance
Technology
Development
Facilities
Maintenance
148

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2022 2021
6,497,974$ 6,203,732$
- 34,681
6,497,974 6,238,413
744,855 732,601
2,438,620 2,853,629
1,268,418 966,026
1,917,707 1,596,561
3,978 3,979
6,373,578 6,152,796
124,396 85,617
443,439 90,000
443,439 90,000
567,835 175,617
(3,205,356) (3,380,973)
(2,637,521)$ (3,205,356)$
Totals
149

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City of San Bruno
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2022 (with comparative totals for June 30, 2021) CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from interfund services provided 857,154$ 2,928,085$ 907,071$ 1,840,346$ Cash payments to suppliers for goods and services (725,463) (2,862,256) (1,379,066) (1,821,233) Net cash provided by (used in) operating activities 131,691 65,829 (471,995) 19,113 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers received from other funds 25,000 - 258,939 159,500 Net cash provided by (used in)
noncapital financing activities 25,000 - 258,939 159,500 Net cash flows 156,691 65,829 (213,056) 178,613 CASH AND INVESTMENTS - Beginning of year 95,807 1,593,828 448,302 546,622 CASH AND INVESTMENTS - End of year 252,498$ 1,659,657$ 235,246$ 725,235$

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

Operating income (loss) 112,299$ 489,465$ (361,347)$ (116,021)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation and amortization - - - 3,978 (Increase) decrease in current assets:

Accounts receivable - - - 34,682 Other receivable
Increase (decrease) in liabilities:

Accounts payable and accrued liabilities 26,794 95,260 (118,284) 85,273 Compensated absences (7,402) (134,896) 7,636 11,201 Claims liability - (384,000) - - Net cash provided by (used in) operating activities 131,691$ 65,829$ (471,995)$ 19,113$ Technology
DevelopmentSelf-InsuranceCentral Garage
Facilities
Maintenance
150

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2022 2021
6,532,656$ 6,258,363$
(6,788,018) (6,115,976)
(255,362) 618,387
443,439 -
443,439 90,000
188,077 708,387
2,684,559 1,976,172
2,872,636$ 2,684,559$
124,396$ 85,617
3,978 3,979
34,682 (34,682)
- 233
89,043 67,290
(123,461) 19,950
(384,000) 476,000
(255,362)$ 618,387$
Totals
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Financial Trends

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity

1. Assessed Value and Actual Value of Taxable Property

2. Direct and Overlapping Property Tax Rates

3. Principal Property Taxpayers

4. Schedule of Top 40 Business License Taxpayers

5. Property Tax Levies and Collections
Debt Capacity

1. Ratio of Outstanding Debt by Type

2. Computation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin

4. Bonded Debt Pledged Revenue Coverage:
a. Wastewater Certificates of Participation
b. 2013 Wastewater Revenue Refunding Bonds
c. 2017 Wastewater Revenue Refunding Bonds
d. 2017 Water Revenue Refunding Bonds
Demographic and Economic Information

1. Demographic and Economic Statistics

2. Principal Employers
Operating Information

1. Full-Time Equivalent City Government Employees by Function/Program

2. Operating Indicators by Function/Program

3. Capital Asset Statistics by Function/Program
Sources
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:

Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.

These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

These schedules 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:

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

These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time:

CITY OF SAN BRUNO
JUNE 30, 2023

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 disclosures, and required 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. 153

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2013 2014 2015 2016 2017
Governmental activities
Net investments in capital assets 49,191,126$ 50,124,094$ 47,667,730$ 50,836,407$ 54,014,157$ Restricted 10,637,770 10,612,672 16,592,413 12,444,902 15,727,642 Unrestricted (5,227,689) (3,967,832) (35,591,299) (34,557,594) (42,133,843) Total governmental activities net position 54,601,207$ 56,768,934 $ 28,668,844 $ 28,723,715 $ 27,607,956$ Business-type activities
Net investments in capital assets 36,842,785$ 46,715,688$ 57,076,442$ 67,316,388$ 70,539,432$ Restricted
Unrestricted 19,519,379 24,822,052 11,218,527 7,002,450 14,463,523 Total business-type activities net position 56,362,164$ 71,537,740 $ 68,294,969 $ 74,318,838 $ 85,002,955 $ Primary government
Net investments in capital assets 86,033,911$ 96,839,782$ 104,744,172$ 118,152,795$ 124,553,589$ Restricted 10,637,770 10,612,672 16,592,413 12,444,902 15,727,642 Unrestricted 14,291,690 20,854,220 (24,372,772) (27,555,144) (27,670,320) Total primary government net position 110,963,37 1$ 128,306,674 $ 96,963,813 $ 103,042,553$ 112,610,91 1$ 2018 2019 2020 2021 2022
Governmental activities
Net investments in capital assets 59,084,356$ 66,352,484$ 69,271,484$ $68,788,202 80,545,096$ Restricted 18,264,533 18,534,689 22,102,576 22,782,488 53,426,528 Unrestricted (41,778,351) (47,316,623) (55,052,523) (50,077,211) (70,032,132) Total governmental activities net position 35,570,538$ 37,570,550 $ 36,321,537 $ 41,493,479 $ 63,939,492$ Business-type activities
Net investments in capital assets 37,167,066$ 42,964,412$ 53,787,761$ 58,888,940$ 58,458,807$ Restricted 40,979,572 27,693,026 15,720,390 4,123,199 1,918,591 Unrestricted 12,485,588 30,544,816 41,095,816 57,332,179 70,033,202 Total business-type activities net position 90,632,226$ 101,202,254 $ 110,603,967 $ 120,344,318 $ 130,410,600 $ Primary government
Net investments in capital assets 96,251,422$ 109,316,896$ 123,059,245$ 127,677,142$ 139,003,903$ Restricted 18,264,533 46,227,715 37,822,966 26,905,687 55,345,119 Unrestricted (29,292,763) (16,771,807) (13,956,707) 7,254,968 1,070 Total primary government net position 85,223,192$ 138,772,804 $ 146,925,504 $ 161,837,797 $ 194,350,092 $

CITY OF SAN BRUNO
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
155

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Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General government 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 6,413,721$ Public safety 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 32,410,681 Public works 954,150 850,759 863,706 929,223 1,032,599 1,797,113 2,332,672 1,566,728 3,131,204 1,618,481 Highways and streets 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 4,949,093 Parks and recreation 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 6,574,959 Library 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 2,156,600 Community development 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 2,857,883 Interest expense 931,179 267,977 416,914 403,839 387,374 380,311 388,594 373,262 324,944 296,821 Total governmental activities expenses 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 57,278,239 Water 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 11,643,075 Stormwater 661,493 739,512 905,074 607,817 606,627 1,011,466 1,677,767 2,287,138 1,375,960 1,641,787 Wastewater 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 12,989,348 Cable Television 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 9,440,513 Total business-type activities expenses 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 35,714,723 Total primary government expenses 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$ 92,992,962$ General government 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 5,362,419$ Public safety 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 3,290,386 Public works 135,283 104,982 86,752 165,037 475,379 308,461 301,330 421,557 708,024 574,911 Highways and streets 14,649 19,985 17,977 17,204 16,500 17,092 17,228 17,474 17,900 18,000 Parks and recreation 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 1,271,240 Library 94,866 92,227 96,969 86,593 92,709 93,014 26,855 17,101 772 6,756 Community development 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 3,653,585 9,190,570 9,527,246 11,433,248 3,053,574 7,352,434 13,445,214 6,440,037 2,231,014 7,722,800 5,881,477 1,143,765 88,658 391,523 227,381 133,241 1,408,402 1,936,614 7,735,245 3,108,476 10,342,801 Total governmental activities program revenues 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 30,401,575 Water 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 16,774,287 Stormwater 611,886 1,474,221 839,852 652,195 1,035,641 645,507 648,323 650,555 655,608 1,054,326 Wastewater 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 19,378,136 Cable Television 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 8,566,131 Total business-type activities program revenues 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 45,772,880 Total primary government program revenues 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$ 76,174,455$ Governmental activities (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)$ (26,876,664)$ Business-type activities 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 10,058,157 Total net revenues (expenses) (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)$ (16,818,507)$ Expenses
Governmental activities:

Business-type activities:

Program Revenues
Governmental activities:

Charges for services:

Operating grants and contributions
Capital grants and contributions
Business-type activities:

Charges for services:

Net Revenues (Expenses)
156

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Changes in Net Position
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Property taxes, levied for general purposes 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$ 14,532,727$ Transient occupancy tax 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 2,408,999 Franchise tax 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 1,624,176 Sales tax, including subvention 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 21,549,194 Cardroom taxes 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 2,220,592 Other taxes 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 2,277,785 Intergovernmental:

State motor vehicle in-lieu tax, including subvention 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 7,646,019 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 - 1,263,400 1,678,676 1,596,447 1,640,673 1,248,861 1,159,121 2,121,974 2,130,318 (341,249) (6,715,096) (11,968,561) (204,035) 274,320 - - - - - - - 58,075 (3,064,452) (1,768,413) (258,524) (3,476,327) 317,399 (720,000) (1,269,703) (201,358) 600,381 Total governmental activities 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 46,144,777 138,020 242,863 174,855 159,068 249,557 557,899 1,625,062 1,413,655 498,412 608,506 (58,075) 3,064,452 1,768,413 258,524 3,476,327 (317,399) 720,000 1,269,703 201,358 (600,381) Total business-type activities 79,945 3,307,315 1,943,268 417,592 3,725,884 240,500 2,345,062 2,683,358 699,770 8,125 Total primary government 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$ 46,152,902$ Change in Net Position
Governmental activities (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$ 19,268,113$ Business-type activities 5,082,564 15,175,576 7,838,895 6,023,868 10,684,117 5,629,271 10,570,028 9,401,713 9,740,351 10,066,282 Total primary government (3,659,307)$ 17,343,303$ 14,091,115$ 6,078,739$ 9,568,358$ 13,591,853$ 12,570,040$ 8,152,700$ 14,912,293$ 29,334,395$ Use of money and property
Transfers
Governmental activities:

Taxes:

Use of money and property
Miscellaneous and extraordinary items
Tran
sfers
Business-type activities:

General Revenues and Other Changes in Net Position
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Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2013 2014 2015 2016 2017
General Fund
Nonspendable 548,075$ 586,650$ 690,344$ 3,529,925$ 2,749,851$ Committed - - - 19,639,289 15,726,434
Assigned 238,060 254,698 188,263 2,130,681 265,888
Unassigned 8,848,896 10,096,649 11,023,626 3,552,485 5,833,164 Total general fund 9,635,031$ 10,937,997$ 11,902,233$ 28,852,380$ 24,575,337$ All Other Governmental Funds
Nonspendable -$ -$ -$ 90,000$ 90,000$ Restricted 11,120,226 10,612,672 14,762,188 12,444,902 15,727,642 Committed 8,093,269 10,689,500 10,240,271 3,059,683 3,082,506 Unassigned (27,028) (42,705) (80,929) --
Total all other governmental funds 19,186,467$ 21,259,467 $ 24,921,530 $ 15,594,585 $ 18,900,148 $ 2018 2019 2020 2021 202 2
General fund:

Nonspendable 1,657,895$ -$ -$ 14,415,651$ 15,316,895$ Committed 20,306,330 21,462,554 21,109,020 - -
Assigned 143,505 1,101,021 611,383 30,408,528 26,045,126 Unassigned 6,050,669 6,590,744 5,644,420 (9,442,918) 5,234,248 Total general fund 28,158,399$ 29,154,319$ 27,364,823$ 35,381,261$ 46,596,269$ All other governmental funds:

Restricted 18,264,533$ 18,501,668$ 22,102,576$ 22,782,488$ 53,426,528$ Committed 3 ,216,534----
Unassigned (719) -- (16,928) (36,617,622)
Total all other governmental funds 21,480,348$ 18,501,668 $ 22,102,576 $ 22,765,560 $ 16,808,906 $ Fiscal year June 30,
Fiscal Year June 30,
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Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2013 201 4 2015 2016 201 7 2018 2019 202 0 2021 2022
Revenues
Taxes 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 $ 44,256,905 $ 2,834,980 4,255,588 3,691,818 3,451,84 1 3,981,683 3,893,645 4,807,519 3,850,848 5,135,532 6,093,60 1 Intergovernmental 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 13,464,39 1 Charges for services 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 3,997,199 Fines and Forfeitures 676,421 654,000 605,704 698,463 1,132,649 7,009,636 1,345,048 1,115,456 824,466 783,915 Use of money and property 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 ) (6,658,443) Other revenues 9,147,023 11,324,450 10,489,406 8,467,574 10,445,009 11,436,819 9,396,817 12,481,39 1 12,194,820 14,008,403 Total revenues: 43,891,853 49,703,19 1 50,200,454 48,750,913 52,251,759 60,109,123 57,892,888 59,366,726 63,549,812 75,945,97 1 Expenditures
8,683,516 8,955,056 8,091,630 5,966,987 6,256,66 1 6,220,529 6,151,598 6,526,050 7,055,055 8,020,370 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 30,693,706 876,159 856,559 1,028,427 895,218 852,334 984,844 1,255,226 1,447,402 1,540,457 1,551,310 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 1,870,115 4,310,157 4,453,98 1 5,493,030 5,301,162 4,967,433 5,717,215 5,795,227 5,844,760 4,838,508 5,164,289 1,628,841 1,631,084 1,724,112 1,758,937 1,841,983 2,038,896 2,067,693 2,105,20 1 1,957,533 2,094,036 1,504,058 1,872,127 2,268,18 1 2,509,152 2,690,910 2,856,118 2,934,136 3,043,416 2,649,788 2,838,99 1 Capital outlay 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 18,577,288 Debt service:

Principal 386,409 807,336 818,289 829,272 1,939,282 1,035,038 1,411,245 1,358,246 1,398,135 1,357,15 1 Interest 542,606 410,689 399,660 386,635 368,929 363,59 1 343,660 356,404 315,09 1 277,303 Total expenditures 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 72,444,559 Reconciliation of Government Revenues
Less expenditures to fund equity
Revenues over (under) expenditures 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 3,501,412 Other financing sources (Transfer in) 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 12,083,255 Other financing sources (Transfer out) (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) (11,926,313) Other financing sources (Capital lease) - - - - 1,873,846 - 1,630,339 - - - Other financing sources (uses):

Proceeds of debt issued (refunds) - - - - - - - - - 1,600,000 Total other financing sources (uses) - - - - - - - - - 1,600,000 Net change in fund balances (3) 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$ 5,258,354$

2.3% 2.9% 2.8% 2.9% 5.3% 3.1% 3.6% 3.4% 3.4% 3.0%
Debt service as a percentage of noncapital
expenditures
Library
Community Development
Licenses and permits
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 Total Estimated Direct
Fiscal Residential Commercial Industrial Other Secured Unsecured Total Full Market Tax Year End Property (a) Property (a) Property (a) Property (a) Property Property Assessed (b) Value (b) Rate (c) 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 2022 7,107,728,273 1,790,875,440 144,928,994 131,588,023 9,175,120,730 130,101,776 9,305,222,506 9,305,222,506 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. 160

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Direct and Overlapping Property Tax Rates
For the last ten fiscal years
(rate per $100 of assessed value)
Total
Total School Special Tax
Fiscal Year Basic Rate Direct Districts Districts Rate
2013 1.0000 1.0000 0.0905 0.0000 1.0905
2014 1.0000 1.0000 0.0864 0.0000 1.0864
2015 1.0000 1.0000 0.0983 0.0000 1.0983
2016 1.0000 1.0000 0.0929 0.0000 1.0929
2017 1.0000 1.0000 0.0910 0.0000 1.0910
2018 1.0000 1.0000 0.0900 0.0000 1.0900
2019 1.0000 1.0000 0.0801 0.0000 1.0801
2020 1.0000 1.0000 0.1148 0.0000 1.1148
2021 1.0000 1.0000 0.1112 0.0000 1.1112
2022 1.0000 1.0000 0.1103 0.0000 1.1103
Source: California Municipal Statistics
Direct Rates Overlapping Rates
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Principal Property Taxpayers
Current Year and Nine Years Ago
Primary Assessed % of Primary Assessed % of
Property Owner Land Use Valuation Rank Total(1) Property Owner Land Use Valuation Rank Total(2) Google Inc. Office Building 772,709,142$ 1 8.42% ASN Tanforan Crossing I LLC Apartments 131,419,883$ 1 2.56% Crystal Springs Associates Apartments 193,341,487 2 2.11% Tanforan Park Shopping Center Shopping Center 122,182,846 2 2.38% ASN Tanforan Crossing I & II LLC Apartments 160,044,190 3 1.74% The Gap Inc. Office Building 122,151,808 3 2.38% Shops at Tanforan Associates LLC Shopping Center 149,275,538 4 1.63% Bayhill Four Associates Office Building 119,113,327 4 2.32% Walmart Stores Inc. Office Building 137,033,527 5 1.49% Archstone San Bruno III LLC Apartments 82,410,209 5 1.61% Benringer Harvard Acappella LP Apartments 120,359,943 6 1.31% Behringer Harvard Acappella LP Apartments 56,100,000 6 1.09% San Bruno III Financing LP Apartments 98,146,076 7 1.07% CREA-San Bruno LLC Office Building 43,800,000 7 0.85% Amazon.com Services LLC Industrial 82,950,556 8 0.90% San Bruno Towne Center Partnership Shopping Center 41,799,367 8 0.81% Welch Family Partnership Commercial Properties 68,750,976 9 0.75% Crystal Springs Associates Apartments 32,459,519 9 0.63% Seritage SRC Financial LLC Shopping Center 63,000,000 10 0.69% Aimco San Bruno Apartments Partners LP Apartments 30,839,848 10 0.60% Subtotal 1,845,611,435$ 20.12% 782,276,807$ 15.24% Total Local Secured
Assessed Valuation:
(1) Fiscal Year 2021-22 9,175,120,730
(2) Fiscal Year 2012-13 5,132,974,381
2021-2022 2012-2013
Source(s): Financial Statements and California Municipal Statistics, Inc. 162

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Schedule of Top 40 Business License Taxpayers
(Listed in Alphabetical Order)
For the year ended June 30, 2022
Name
ALL SHORES 135 EL CAMINO REAL
AUTOMOTIVE WORKWEAR INC 881 SNEATH LN 113
CLAPP, MORONEY, BELLAGAMBA, & VUCINICH 1111 BAYHILL DR 300 CRESTMOOR AUTO CENTER 2901 SAN BRUNO AVE W
CVS/PHARMACY #9807 10 BAYHILL SHOPPING CENTER
GRAND ELECTRIC CONSTRUCTION CO. INC. 133 TANFORAN AVE
INTERFRESH INC. 901 SNEATH LN 215
LOWE'S HOME CENTERS LLC 1340 EL CAMINO REAL
LUCKY #748 1322 EL CAMINO REAL
LUNARDI'S MARKET 2801 SAN BRUNO AVE W
MARSHALL'S #492 1268 EL CAMINO REAL
MELODY TOYOTA 222 SAN BRUNO AVE E
MOLLIE STONE'S MARKET 851 CHERRY AVE 22
PACIFIC BELL TELELPHONE COMPANY 1101 SAN MATEO AVE
PENINSULA GUNS AND TACTICAL 360 EL CAMINO REAL
PROVIDENCE SAN BRUNO 890 EL CAMINO REAL
RANDSTAD PROFESSIONALS US LLC 850 CHERRY AVE
RECOLOGY SAN BRUNO 101 TANFORAN AVE
RMC MOTORCARS 444 EL CAMINO REAL
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 TOWNE CENTER SAN BRUNO TOWNE CTR
SPECIALTY TOBACCO OUTLET 1230 EL CAMINO REAL L
STRATFORD SCHOOL 2322 CRESTMOOR DR
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
TIFFANY'S CLEANING SERVICES INC 130 ROSS WAY
TRINITY BUILDING SERVICES 1071 SNEATH LANE
VANTAGEPOINT CAPITAL PARTNERS 1111 BAYHILL DR 220
VICTORY HONDA OF SAN BRUNO 345 EL CAMINO REAL
VINCE'S SHELL FISH CO. INC 1063 MONTGOMERY AVE
WALGREENS #2939 333 EL CAMINO REAL
WALMART.COM USA LLC 850 CHERRY AVE
WELCH FAMILY PARTNERSHIP LLC 383 SAN BRUNO AVE W
WILLIS CONSTRUCTION CO., INC. 2261 SAN JUAN HWY
YOU TUBE INC. 901 CHERRY AVE
YOU TUBE INC. 1250 GRUNDY LN
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 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% 2022 8,596,769 8,596,769 100% - 8,596,769 100% Source: City financial records
Collected within the
Fiscal Year of the Levy Total Collections to Date
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. 164

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City of San Bruno, California
Ratios of Outstanding Debt by Type
For the last ten fiscal years
Fiscal
Year Pension Fire Apparatus
Ended Capital Obligation 2017 Cable Router 2022
June 30, Leases Bonds Capital Lease Capital Lease Fire Engines Subtotal 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 2022 - 5,142,410 - 339,090 1,600,000 7,081,500 Fiscal Wastewater City of South Debt As
Year Wastewater Revenue Wastewater Water Cable TV San Francisco Total Percent of Ended Certificates of Refunding Revenue Revenue Capital Lease Sewer Plan Primary Debt Per Personal June 30, Participation Bond Bonds Bonds Obligation Loan Subtotal Government Population Capita Income 2013 7,800,000$ - $ - $ - $ 467,213$ 10,360,416 $ 18,627,629 $ 31,386,276 $ 42,828 $ 733 $ 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 - 5,184,506 25,693,415 12,191,980 - 3,264,637 46,334,537 53,153,670 45,454 1,169.39 2.5% 2022 - 4,846,630 25,135,881 11,930,425 - 2,299,366 44,212,302 51,293,802 42,656 1,202.50 2.2% Fiscal
Year
Ended Certificates of 2019 Lease
June 30, Participation Revenue Bonds
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
2022 - 4,186,798
Source: City financial records
Governmental Activities
Business-type Activities
Fiduciary Funds
165

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City of San Bruno, California
Direct and Overlapping Governmental Activities Debt
June 30, 2022
2021-2022 Assessed Valuation: 9,305,389,632$
Total Debt City's Share of
Overlapping Tax and Assessment Debt: 6/30/22 % Applicable (1) Debt 6/30/22 San Mateo Community College District 733,897,184$ 3.494% 25,642,368$ South San Francisco Unified School District 164,131,912 1.058 1,736,516 San Mateo Union High School District 665,230,852 9.985 66,403,344 San Bruno Park School District 63,319,579 96.089 60,843,150 Millbrae School District 47,749,527 3.426 1,635,89 9
Total overlapping tax and assessment debt 156,261,277
Ratios to 2021-22 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.68%
Direct and Overlapping General Fund Debt:

San Mateo County General Fund Obligations 612,605,687 3.49% 21,404,443 San Mateo County Board of Education Certificates of Participation 6,490,000 3.494 226,761 San Mateo County Flood and Sea LRR District General Fund Obligations 14,675,000 6.062 889,599 South San Francisco Unified School District General Fund Obligations 2,980,000 1.058 31,528 San Bruno Park School District General Fund Obligations 2,145,000 96.089 2,061,109 City of San Bruno Fire Engines 2022 Lease 1,600,000 100 1,600,000 City of San Bruno CATV Router Lease 339,090 100 339,090 City of San Bruno Pension Obligation Bonds 5,142,410 100 5,142,410 San Mateo Count
y Mosquito and Vector Control District General Fund Obligations 3,825,000 3.494 133,646 Total direct and overlapping general fund debt 31,828,586 Overlapping Tax Increment Debt (Successor Agency)
City of San Bruno Lease Revenue Bonds 4,186,798 100.00% 4,186,798 Total overlapping tax increment debt (Successor Agency) 4,186,79 8 Total Direct Debt 7,081,500
Total Overlapping Debt 185,195,161
Combined Total Debt (2) 192,276,661$ (2)
Ratios to Adjusted Assessed Valuation:

Total Direct Debt ($7,081,500) 0.08%
Combined Total Debt 2.07%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,861,304,404):

Total Overlapping Tax Increment Debt 0.20%
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 div ided by the district's total taxable assessed value.
166

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City of San Bruno, California
Legal Debt Margin Information
Last Ten Fiscal Years
(in thousands of dollars)
Legal Debt Margin Calculation for Fiscal Year 2022 (1)
Gross Assessed Valuation 9,305,222,506$
Bonded Debt Limit (3.75% of Assessed Value) 348,945,844 Less Amount of Debt Applicable to Limit -
Legal Bonded Debt Margin 348,945,844$
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Debt limit 798,292$ 842,892$ 906,586$ 967,607 $2 60,349$2 75,518$ 295,778$3 15,178$3 36,709$ 348,946 $ Total net debt applicable
to limit -
-

-
-
-

-
-
Legal debt margin 798,292$ 842,892 $ 906,586 $ 967,607 $2 6 0 , 3 4 9 $2 7 5 , 5 1 8 $ 295,778 $3 1 5 , 1 7 8 $3 3 6 , 7 0 9 $ 348,946 $ 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
:

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
(1) California Government Code, Section 43605 sets the debt limit at 15% of gross assessed valuation. The Code section was enacted when assessed valuations w 167

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City of San Bruno, California
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$ -$ 111,024$ 79$ 2015 15,087,098 7,947,063 3,248,307 290,000 289,538 5.60 2016 15,954,642 8,355,894 7,598,748 260,000 281,288 14.04 2017 15,923,694 9,305,503 6,618,191 265,000 273,081 12.30 2018 17,032,182 8,431,394 8,600,788 280,000 263,875 15.81 2019 18,643,453 8,039,977 10,603,476 285,000 253,275 19.70 2020 18,947,384 8,955,800 9,991,584 295,000 241,675 18.62 2021 18,710,405 8,990,002 9,720,403 310,000 229,188 18.03 2022 19 ,677,857 9,111,455 10 ,566,402 320 ,000 217 ,200 19.67 2018 17,032,182$ 8,431,394 $ 8,600,788 $ - $ - $ - 2019 18,643,453 8,039,977 10,603,476 245,000 1,073,309 8.04 2020 18,947,384 8,955,800 9,991,584 440,000 993,100 6.97 2021 18,710,405 8,990,002 9,720,403 455,000 979,675 6.78 2022 19,677,857 9,111,455 10,566,402 470,000 963,450 7.37 2018 15,561,896$ 8,819,147 $ 6,742,749 $ - $ - $ - 2019 17,721,522 9,032,331 8,689,191 120,000 509,394 13.81 2020 17,614,884 9,715,615 7,899,269 210,000 471,250 11.60 2021 18,031,439 10,443,967 7,587,472 215,000 464,875 11.16 2022 17,078,773 9,486,358 7,592,415 220,000 457,250 11.21 Note:

Source: City financial records
2013 Wastewater Revenue Refunding Bonds
Debt Service
Business-type Activities
Wastewater Certificates of Participation
(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
2017 Wastewater Revenue Bonds
2017 Water Revenue Bonds
168

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City of San Bruno, California
Demographic and Economic Statistics
Last ten calendar years
Per
Total Capita County City
Population Personal Personal Median **School Unemployment Unemployment Year (1) Income (2) Income (2) A ge (3) Enrollment Rate (4) Rate (4) 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% 2022 42,656 2,358,010,883 55,280 38.8 3,210 1.7% 1.9% Source: 2020-21 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 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
**School enrollment reflects the total number of students enrolled in Capuchino High & San Bruno Park Elementary School District
169

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City of San Bruno, California
Principal Employers
Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
Employer Employees Rank Employment Em ployees Rank Employment You Tube, Inc* 2,888 1 10.46 % 686 2.97%
Walmart eCommerce Corporate Office 2,165 27 . 8 4 %
Skyline College** 464 31 . 6 8 % 246 1.06%
Artichoke Joe's Casino 410 41 . 4 9 % 350 1.52%
City of San Bruno 244 50 . 8 8 % 239 1.03%
Target Store 208 60 .75% 258 1.12%
Lucky Supermarkets 204 70 . 7 4 %
San Bruno Park School District** 195 80 . 7 1 %
Lowe's HIW, Inc. 170 90 . 6 2 % 175 0.76%
Capuchino High School (SMUHSD) 111 10 0.40 %
Cisco Ironport Systems, Inc
Responsys, Inc. 271 1.17%
Lash Group, Inc 260 1.13 %
Sears, Roebuck & Co*** 260 1.13%
CBR Systems Inc 150 0.65 %
Total Top Employers 7,059 25.58% 2,895 12.53%
Total City Labor (1) 27,600 23,100
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
2021-2022 2012-2013
170

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City of San Bruno, California
Full-time Equivalent City Employees by Function/Program Last Ten Fiscal Years
(Fiscal year ended June 30)
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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 2.00 2.00 2.00 2.00 City Treasurer 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 3.00 3.00 3.00 3.00 3.00 4.00 4.00 4.00 3.00 Human Resources 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 Finance
Administration 4.50 5.00 5.00 5.00 5.50 5.50 5.00 5.00 5.00 5.00 Revenue Services 6.00 5.00 5.00 5.00 4.50 4.50 5.00 5.00 5.00 5.00 Police 60.00 61.50 62.50 62.50 64.00 65.00 68.00 69.00 72.00 64.00 Fire 32.75 32.75 33.30 33.40 35.00 35.00 35.00 36.00 36.00 32.00 Public Works
Admin. & Engineering 6.75 6.70 6.70 6.70 6.70 6.70 6.70 6.70 5.65 7.35 Streets Maintenance 5.05 5.10 5.70 5.80 5.80 5.80 5.70 5.70 5.65 4.70 Community Development
Planning 3.50 4.50 4.50 4.25 5.75 5.25 5.25 5.25 5.25 5.50 Building 6.50 6.50 7.50 7.75 8.25 8.75 8.75 10.75 7.75 6.50 Parks & Recreation Services
Recreation 4.00 4.00 4.75 4.90 4.90 4.90 4.90 4.90 4.95 3.95 Parks Maintenance 13.80 13.80 14.30 13.05 13.05 13.05 15.05 15.05 14.85 10.85 Senior Services 3.35 3.35 3.45 3.75 3.65 3.65 3.65 3.65 3.90 2.90 Library Services 7.65 7.65 7.55 7.75 7.85 7.85 7.85 7.85 7.80 7.30 Subtotal 167.10 170.10 174.50 174.10 179.20 179.70 185.35 189.35 188.30 168.55 Other General Funds
A m e r i c a n R e s c u e P l a n A c t --------- 1 9 . 0 0 S u b t o t a l --------- 1 9 . 0 0
Special Revenues
Solid Waste 0.35 0.35 0.35 0.45 0.45 0.45 0.45 0.45 0.45 0.45 RDA Ope r a t i o n ----------
Successor Agency to SB RDA 1 . 0 0 ---------
RDA Low/Mod Housing ----------
Subtotal 1.35 0.35 0.35 0.45 0.45 0.45 0.45 0.45 0.45 0.45 Internal Services
Central Garage 2.85 2.35 2.35 2.35 2.35 2.35 2.35 2.35 2.60 2.60 Buildings and Facilities 5.70 5.70 6.45 7.05 7.05 7.05 8.05 8.05 8.85 8.90 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 0.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Subtotal 12.55 11.55 12.80 13.40 13. 40 13.40 14.40 14.40 15.45 15.50 Enterprise Funds
Water Enterprise 17.30 16.95 17.45 17.45 17.95 17.95 17.95 17.95 17.95 18.20 Stormwater Enterprise 3.65 3.75 4.15 3.95 3.95 3.95 4.05 6.05 6.05 6.05 Wastewater Enterprise 15.55 15.80 16.30 16.30 16.80 16.80 16.80 16.80 16.80 15.75 Cable Enterprise 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 19.00 Subtotal 56.50 56.50 57.90 57.70 58. 70 58.70 58.80 60.80 60.80 59.00 Glenview Funds
Crestmoor (Glenview) R e c o v 5 . 0 0 4 . 2 5 3 . 7 0 3 . 7 0 2 . 0 0 0 . 5 0 ---- S u b t o t a l 5 . 0 0 4 . 2 5 3 . 7 0 3 . 7 0 2 . 0 0 0 . 5 0 ---- Total Positions (all funds) 242.50 242.75 249.25 249.35 253.75 252.75 259.00 265.00 265.00 262.50 Source: Adopted City Budget
Note: The City began to report Full Time Equivalent Employees by Function in 2004 171

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City of San Bruno, California
Operating Indicators by Function/Program
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police
Calls for Service 24,405 30,131 32,610 36,144 31,333 42,057 47,429 44,684 41,406 42,260 Physical arrests 989 1,071 1,224 1,280 1,311 1,087 1,627 1,240 845 1,331 Parking violations** 11,559 8,710 8,794 11,675 15,525 14,205 18,252 9,848 13,396 9,969 Traffic collisions 380 369 464 452 384 325 338 237 233 217 Moving citations 1,422 2,659 2,144 2,221 2,225 2,424 2,447 2,199 1,953 1,363 Fire
Number of stations 2222222222
Number of calls answered 3,916 3,148 3,159 3,574 4,288 3,874 4,006 4,236 4,092 5,486 Number of inspections conducted** 1,358 1,326 1,375 1,420 1,360 1,307 1,415 1,621 1,444 1,110 Public Works
Street repair (sq. ft.) 3,923 4,792 14,697 861,150 145,204 539,343 816,331 80,999 29,457 227,300 Potholes repaired 2,311 2,670 2,185 1,618 2,333 1,442 1,905 2,546 2,735 1,694 Sidewalk repair (sq. ft) 896 11,625 14,980 651 262 119,922 3,624 8,001 2,003 16,950 Sidewalk curb & gutter repair (ft) 85 927 1,397 109 886 26,041 700 1,269 1,234 1,650 Street light poles replaced 6 14 9 13 65 44 50 10 5
Community Development:

Plans checks 340 340 527 553 445 549 688 622 162 846
Permits Issued 1,284 1,283 1,339 1,622 1,500 1,468 1,455 1,276 1,471 1,589 Parks & recreation:

Picnic rentals 673 934 954 859 842 888 820 532 107 771
Number of trees planted * 63 120 75 100 100 100 71 100 83 Linear miles of medians maintained *7 . 3 5 7.35 7.35 7.35 7.35 7.35 7.35 7.35 7.35 Library:

Library circulation 388,066 358,362 354,047 329,210 3 37,671 334,711 353,015 294,333 165,059 525,389 Library visits 228,835 248,563 219,343 182,263 1 79,150 190,466 205,851 161,907 10,813 120,398 Water
New service connections 265 442 263 285 363 243 282 238 299 161 Gallons purchased (millions of
gallons) 725 600 477 507 948 950 1,102 907 2,647 374
Stormwater
Number of curb miles swept * 5,540 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 2,680 Cable
Number of Internet service subscribe
r * 6,085 6,111 6,337 6,460 6,600 7,260 7,109 7,300 6,650 Number of new customer installation * 953 1,121 1,208 1,031 1,200 1,500 1,112 1,112 1,350 * Historical data is not available
**Calendar year as of October 31
Source: Various City department records. Started tracking by function in 2011 172

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City of San Bruno, California
Capital Asset Statistics by Function/Program
Last Eight Fiscal Years
(Fiscal year ended June 30)
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 Public Safety
Number of police stations 1 1 1 1 1 1 1 1 Number of fire stations 2 2 2 2 2 2 2 2 Public Works
Miles of streets 89 89 89 89 89 89 89 89 Average Citywide Pavement Condition Index (PCI) Score 65 64 62 61 66 62 65 84 Miles of Sidewalk 178 178 178 178 178 178 178 178 N u m b e r o f s t r e e t l i g h t s **** 1 , 9 0 9 1,909 1,909 41 Number of traffic signals 17 17 17 17 17 17 17 17 N u m b e r o f s t r e e t s i g n s **** 4 , 9 4 3 5,240 5,245 439 Water
Miles of water mains * * * * 120 120 120 120 N u m b e r o f f i r e h y d r a n t s **** 9 4 9 949 950 985 Number of water wells 4 4 4 4 4 4 4 5 Number of pump stations 8 8 8 8 8 8 8 8 Number of water tanks 8 8 8 8 8 8 8 8 Number of pressure regulator stations 26 26 26 26 26 26 26 13 Wastewater/Sewer
Miles of sanitary sewers main * * * * 89 89 89 87 Miles of sewer lift (pump) stations 6 6 6 6 6 6 6 6 Stormwater
Number of storm sewer main 36 36 36 36 36 36 36 36 Number of trash capture devices 55 55 55 55 277 284 287 293 Leisure and Culture
Number of parks 18 18 18 18 18 18 19 19 Acres of maintained landscaped areas 96 96 96 96 97 97 97 97 Acres of open space 128 128 128 128 128 128 128 128 Number of trees *4 , 7 0 0 6,300 6,300 6,777 6,777 6,777 6,777 Number of libraries 1 1 1 1 1 1 1 1 Number of senior centers 1 1 1 1 1 1 1 1 Number of recreation center facilities 1 1 1 1 1 1 1 1 Note:
* Historical data is not available
Source: City of San Bruno
173

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Measure A Fund
San Bruno, California
Independent Accountant’s Report on
Management’s Assertion
For the year ended June 30, 2022

286 of 369

City of San Bruno
Measure A Transportation Tax Fund
For the year ended June 30, 2022
Table of Contents
Page
Independent Accountant’s Report .......................................................................................................................... 1 Schedule of Receipts and Disbursements ............................................................................................................. 2 Management's Report on Compliance with the Agreement for Distribution of San Mateo County Measure A Funds for Local Transportation Purposes ..................................................................................... 3

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INDEPENDENT ACCOUNTANT’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Bruno
San Bruno, California
We have examined management’s assertion, that the accompanying receipts and disbursements are in compliance with the Agreement for Distribution of San Mateo County Measure A Funds for Local Transportation Purposes in accordance with the 2004 Measure A between the City of San Bruno (City) and the San Mateo County Transportation Authority entered into on March 10, 2009, and that the City complied with the requirements of the Agreement during the year ended June 30, 2022. Management is responsible for its assertion. Our responsibility is to express an opinion on management’s assertion based on our examination.

Our examination was conducted in accordance with atte station standards established by the AICPA. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether management's assertion is fairly stated, in all mate rial respects. An examination involves performing procedures to obtain evidence about management's assertion. The nature, timing, and extent of the 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.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.

In our opinion, management’s assertion that the accompanying receipts and disbursements are in compliance with the Agreement between the City and the San Mateo County Transportation Authority entered into on March 10, 2009, and that the City complied with the requirements of the Agreement during the year ended June 30, 2022, is fairly stated, in all material respects.

Badawi & Associates, CPAs
Berkeley, California
May 17, 2023

288 of 369

City of San Bruno
Measure A Transportation Tax Fund
Schedule of Receipts and Disbursements
For the year ended June 30, 2022
2 289 of 369

CITY OF SAN BRUNO
Alex D. McIntyre CITY MANAGER’S OFFICE
Interim City Manager

567 El Camino Real, San Bruno, California 94066-4299
Voice: (650) 616-7056 ∙ Fax: (650) 742-6515
www.sanbruno.ca.gov

May 17, 2023

San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070

Re: Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure A Funds for Local Transportation Purposes

The City of San Bruno (City) is responsible for complying with the Agreement for Distribution of San Mateo County Measure A Funds for Local Transportation Purposes (Agreement) between the City and the San Mateo County Transportation Authority entered in to March 10, 2009. The Agreement states that in return for receiving an annual allocation of a specified p ortion of the retai l transaction and use tax approved by Measure A – San Mateo County Transportation Expenditure Plan (TEP), the City, in use of these f unds, shall “not be used to replace funds previously provided by property tax or other local revenues for public transportation purposes, and the City will limit the use of funds provided pursuant to this Agreement to the improvement and maintenance of loc al transportation, including streets and roads improvements, as described in the TEP.”

With respect to compliance with the Agreement, management attests to the following for the year ended June 30, 2022:

 Management is responsible for establishing and mai ntaining an effective internal control with respect to compliance with the Agreement.
 Management is responsible for complying with the Agreement.  Management has evaluated the City’s compliance with requirements of the Agreement; and
 All Transactions, as su mmarized in the attached Schedule of Receipts and Disbursements for the fiscal year ended June 30, 2022, are in comp liance with the Agreement.

_____________________________ ______________________________ Alex McIntyre Bobby Magee
Interim City Manager Interim Finance Direct

DocuSign Envelope ID: A194B238-FBA3-451F-9878-845B00C83A2A 5/17/2023
5/17/2023

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Measure W Fund
San Bruno, California
Independent Accountant’s Report on
Management’s Assertion
For the year ended June 30, 2022

291 of 369

City of San Bruno
Measure W Transportation Tax Fund
For the year ended June 30, 2022
Table of Contents
Page
Independent Accountant’s Report .......................................................................................................................... 1 Schedule of Receipts and Disbursements ............................................................................................................. 2 Management's Report on Compliance with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes .................................................................................... 3

292 of 369

INDEPENDENT ACCOUNTANT’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Bruno
San Bruno, California
We have examined management’s assertion that the accompanying receipts and disbursements are in compliance with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes (Agreement) between the City of San Bruno (City) and the San Mateo County Transportation Authority entered into on September 24, 2019, and that the City complied with the requirements of the Agreement during the year ended June 30, 2022. Management is responsible for its assertion. Our responsibility is to express an opinion on management’s assertion based on our examination.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.

In our opinion, management’s assertion that the accompanying receipts and disbursements are in compliance with the Agreement between the City and the San Mateo County Transportation Authority entered into on September 24, 2019, and that the City complied with the requirements of the Agreement during the year ended June 30, 2022, is fairly stated, in all material respects.

Badawi & Associates, CPAs
Berkeley, California
May 17, 2023

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City of San Bruno
Measure W Transportation Tax Fund
Schedule of Receipts and Disbursements
For the year ended June 30, 2022
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CITY OF SAN BRUNO
Alex D. McIntyre CITY MANAGER’S OFFICE
Interim City Manager

567 El Camino Real, San Bruno, California 94066-4299
Voice: (650) 616-7056 ∙ Fax: (650) 742-6515
www.sanbruno.ca.gov

May 17, 2023

San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070

Re: Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes

The City of San Bruno (City) is responsible for complying with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes (Agreement) between the City and the San Mateo County Transportation Authority entered into on September 24, 20 19. The Agreement states that in return for receiving an annual allocation of a specified portion of th e retail transaction and use tax approved by San Mateo County Congestion Relief Plan, the City, in use of these funds, shall not be u sed 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 improvements in key congested areas throughout the C ounty, focusing on improving safety, reducing congestion, and supporting all modes of travel on the County's roadway system.

With respect to compliance with the Agreement, management attests to the following for the year ended June 30, 2022:

 Management is responsible for establishing and maintaining an effective internal control with respect to compliance with the Agreement.
 Management is responsible for complying with the Agreement.  Management has evaluated the City’s compliance with requirements of the Agreement; and
 All Transactions, as summarized in the attached Schedule of Receipts and Disbursements for the fis cal year ended June 30, 2022, are in compliance with the Agreement.

_____________________________ ______________________________ Alex McIntyre Bobby Magee
Interim City Manager Interim Finance Director

DocuSign Envelope ID: A194B238-FBA3-451F-9878-845B00C83A2A 5/17/2023
5/17/2023

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San Bruno, California
Single Audit Reports
For the year ended June 30, 2022

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City of San Bruno
Single Audit Reports
For the year ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................... 1 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance .............................................. 3 Schedule of Expenditures of Federal Awards ..................................................................................................... 7 Notes to the Schedule of Expenditures of Federal Awards ............................................................................... 9 Schedule of Findings and Questioned Costs ..................................................................................................... 11

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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of San Bruno
San Bruno, California
We have audited, in accordance with the auditing standards 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 St ates, the 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 (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated April 26, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, 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 opin ions 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.

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 pe rforming 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 entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in inter nal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified cert ain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2022-01, 2022-02, and 2022-03 that we consider to be material weaknesses.

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

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San Bruno City CouncilMay 23, 2023

San Bruno City Council
May 23, 2023