City Council Audit Committee
December 2, 2022

CITY OF SAN MATEO
City Council Audit Committee
December 2, 2022
2:00 PM
Council Chambers,
City Hall
330 W. 20
Avenue, CA 94403

COMMITTEE MEMBERS
Rick Bonilla, Mayor
Diane Papan, Deputy Mayor

AGENDA
DUE TO THE STATE OF CALIFORNIA’S DECLARATION OF EMERGENCY – THIS MEETING IS BEING HELD PURSUANT TO AUTHORIZATION FROM GOVERNMENT CODE 54943(b)(3) / AB361 (2021) – CITY COUNCIL AND COMMISSION MEETINGS ARE NO LONGER OPEN TO IN-PERSON ATTENDANCE.

ANYONE CAN WATCH AND PROVIDE COMMENTS REMOTELY IN THE WAYS DESCRIBED AT THE END OF THE AGENDA.

To join via Zoom – click here:

November 15, 2021 Zoom Meeting
To join via telephone: (408) 638-0968
Conference ID: 882 0893 4013
Passcode: 085576

CALL TO ORDER
Roll Call

NEW BUSINESS
The public will have an opportunity to comment during the consideration of these items.

1. Year-end Financial Reports for the Fiscal Year Ended June 30, 2022 Recommend City Council acceptance and approval of the year-end financial reports for the Fiscal Year Ended June 30, 2022

ADJOURNMENT
------------------------------------------------------------------------------------------------------------------------------------------ In compliance with the Americans with Disabilities Act, those with disabilities requiring special accommodations to participate in this meeting may contact the City Clerk’s Office at (650) 522-7040 or [email protected].

Notification 48 hours prior to the meeting
will enable the City to make reasonable arrangements to ensure accessibility to this meeting. th

1 of 210

CITY OF SAN MATEO
3 7
9 8

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 1 Section Name: NEW BUSINESS Account Number: File ID: 22-6864 TO: City Council Audit Committee
FROM: Rich Lee
PREPARED BY: Finance Department
MEETING DATE: December 02, 2022
SUBJECT:

Year-end Financial Reports for the Fiscal Year Ended June 30, 2022 RECOMMENDATION:

Recommend City Council acceptance and approval of the year-end financial reports for the Fiscal Year Ended June 30, 2022 BACKGROUND:

It is the City of San Mateo's long-standing practice to issue its fiscal-year end financial statements within six months after the end of each fiscal year. The City's fiscal year begins on July 1 and ends on June 30. The primary fiscal year-end report is the Annual Comprehensive Financial Report (ACFR), which reflects the cumulative efforts of the year-end process, led by Accounting Division staff, and the completion of the independent audit of the City's financial information. In addition, the Measure S Oversight Committee formally accepted the Independent Accountants’ Report on Agreed-Upon Procedures Applied to Schedule of Measure S Revenues and Expenditures for the year ended June 30, 2022 at its meeting on November 15, 2022. The purpose of this report is to provide a high level summary of the ACFR, including notable highlights and changes from the prior fiscal year. The City's independent auditor, The Pun Group, a firm of licensed certified public accountants, has rendered an unmodified opinion on the City's basic financial statements for the fiscal year ended June 30, 2022.

GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements aggregate the City's financial data into Governmental and Business-Type activities. The latter reflects the City's Sewer Enterprise, and the former accounts for the remainder; most notably, the General Fund.

Statement of Net Position
The Statement of Net Position primarily presents the City's balance sheet-type accounts: assets and deferred outflows of resources (expenditures that apply to a future period), liabilities and deferred inflows of resources (revenues that apply to a future period), and the net of the former and latter categories, reported as net position. The City's total net position for the year ended June 30, 2022 was $727.9 million, an increase of $80.6 million or 12.4% compared to the prior fiscal year.

Much of the favorable change in net position reflected the reduction of the City’s net pension liability, which decreased from $247.9 million to $177.2 million or 28.5%. The $70.7 million decrease in net pension liability is primarily attributable to the 21.3% investment return by the California Public Employees Retirement System (CalPERS) for the fiscal year ended June 30, 2021. However, the favorable results and the resultant impact on the City’s net pension liability will be short lived, as CalPERS’ investment return for the fiscal year ended June 30, 2022 was negative 7.5%. The deviations in investment returns from the discount rate for the fiscal year ended June 30, 2021 and June 30, 2022 will be amortized over 20 years, with a five year ramping period, where each year folds in 20% of one year of the amortized value. At its peak, the negative

7.5% investment loss will increase the City’s net pension liability by nearly $100 million.

2 of 210

CITY OF SAN MATEO
3 7
9 8
Statement of Activities
The Statement of Activities, which reports government-wide revenues and expenses, accounted for $204.4 million in total expenses, which was a decrease of $12.8 million or 5.9% compared to the prior fiscal year. The primary driver behind the decrease was the decrease in pension liability due to the favorable deviation of CalPERS’ investment returns noted above.

FUND FINANCIAL STATEMENTS
Governmental Funds
The Fund Financial Statements section of the ACFR presents financial data for the City's major funds, most notably the General Fund. The table below compares the adopted budget, estimate from April 2022, and actual General Fund total revenues and expenditures:

Account Type 2021-22
Adopted
2021-22
April 2022 Estimate
2021-22
Actual
Variance
Actual vs. Estimate
Total Revenues $144.5 $160.2 $159.9 ($0.3)
Total Expenditures 146.9 146.6 140.4 6.2
Net Gain / (Loss) ($2.4) $13.6 $19.5 $5.9
General Fund Revenues
General Fund total revenues were $159.9 million, which had a nominal difference of $0.3 million from the year-end estimate from April 2022.

Property tax revenues accounted for $2.7 million more than estimated, primarily due to a favorable outcome regarding a dispute between the State Controller’s Office (SCO) and the five counties in the State of California that generate Excess Education Revenue Augmentation Fund (ERAF) revenues, which includes San Mateo County. The adopted 2021-22 budget assumed that the funds that were in dispute (and as a result, were withheld by the San Mateo County Controller) would not be distributed. However, resolution with the SCO resulted in the funds being released and Excess ERAF revenues driving the favorable budget variance for property tax revenues. In addition, the property tax in-lieu of vehicle license fees (VLF) shortfall was less than anticipated, so the San Mateo County Controller’s Office distributed an additional $1.4 million in VLF that the City accrued for fiscal year 2021-22.

Sales tax revenues were $1.2 million more than the April 2022 estimate, affirming the accelerated recovery of the City’s sales tax revenues back to the pre-pandemic baseline from fiscal year 2018-19. The recovery was primarily buoyed by the general retail, food products, and transportation sectors. While the recovery of the general retail and food products sectors were driven by a mix of inflation and increasing consumer demand, transportation-related sales tax revenues were predominantly attributable to the escalating cost of gas.

The revenue projections from April 2022 did not factor in the year-end adjusting entry for Governmental Accounting Standards Board (GASB) Statement No. 31, which requires the City to adjust the value of its investment portfolio to fair market value. As a result of the Federal Reserve System’s actions to increase the Federal Funds Rate, which is the rate that commercial banks borrow and lend their excess reserves overnight to each other, as shown in the graph below, to address historically high and sustained inflation.

3 of 210

CITY OF SAN MATEO
3 7
9 8
As such, the City accounted for a GASB 31 fair market value adjustment of negative $11.4 million, of which the General Fund was allocated negative $4.2 million. If the City sold all its investments as of June 30, 2022, it would recognize the loss.

However, the City’s investment policy prioritizes, in order, safety, liquidity, and yield. As such, with the high credit quality of its investments, and its practice is to hold most of its investments to maturity, the GASB 31 year-end adjustment is effectively a paper loss and an accounting exercise. The GASB 31 year-end adjustment was not factored into the April 2022 year-end estimate due to the rapidly escalating Federal Funds Rate and the uncertainty as to when it would begin to recede.

GENERAL FUND EXPENDITURES
Total General Fund expenditures, including transfer out, were $140.4 million, which is a favorable variance of $6.2 million compared to the April 2022 year-end estimates. Most of the favorable variance is in transfers out. There were $1.9 million in transfers out from Measure S to the Capital Improvement Projects (CIP) Fund that did not occur in the fiscal year ended June 30, 2022. In accordance with generally accepted accounting principles, the remaining appropriations, the amount remaining of transfers out have been reserved for CIP in the Measure S sub-fund, and the related budget appropriations have been rolled over to fiscal year 2022-23. This practice is to ensure that fund balance is properly dispositioned between available resources (unassigned) and assigned (reserve for CIP) to avoid overcommitting the fund’s available resources.

OTHER MAJOR FUNDS
The Construction Service Special Revenue Fund, which accounts for revenue and expenditures of activities related to building permits, decreased its total fund balances by $5.0 million to $36.3 million, which illustrated the City’s efforts to align the cost of services with its fees. Over time, these efforts will gradually reduce reserves down to policy levels, which is 12 months of budgeted operating expenditures.

The General Capital Projects Fund (CIP Fund) accounted for $32.5 million in expenditures, reflecting the City Council’s vision of having well-maintained infrastructure through its investment of $8.3 million for city-wide street rehabilitation and sidewalk repair, $5.1 million for downtown parking, and $9.3 million for North Shoreview flood control improvements.

Completion of the flood control capital improvements is expected in 2023, which will remove approximately 1,500 homes from the Federal Emergency Management Agency (FEMA) flood zone. The city-wide street rehabilitation will repair streets that were identified as failed in 2013 and ensure that the City will be able to maintain its Pavement Condition Index score of 70.

Statement of Revenues, Expenditures, and Changes in Fund Balances The Statement of Revenues, Expenditures, and Changes in Fund Balances presents revenues by type and expenditures by department for each of the major funds and non-major funds (in aggregate). Total revenues for the General Fund increased from $137.6 million in the prior fiscal year to $159.7 million (excluding transfers in) for the year ended June 30,

4 of 210

CITY OF SAN MATEO
3 7
9 8
2022. This $22.1 million increase in revenues is largely from year-over-year increases in the City’s tax revenues – property tax, sales tax, and other taxes.

Property Taxes increased by $8.2 million compared to the prior fiscal year. The largest drivers were current year secured ($1.9 million), Excess ERAF ($1.9 million), and property tax in lieu of vehicle license fees ($4.8 million). The increase in current year secured property taxes reflected the growth in assessed value, while the increase in Excess ERAF is largely due to the favorable outcome to the dispute between the SCO and the five counties in the state that generate Excess ERAF. In fiscal year 2020-21, the County of San Mateo experienced a property tax in lieu of vehicle license fees (VLF) shortfall of $96 million. The City’s share of the 2020-21 VLF shortfall was $5.7 million. The County of San Mateo submitted a claim to the State of California for the 2020-21 VLF shortfall in August 2021, which the State considered and appropriated for inclusion in its 2022-23 adopted budget. The VLF shortfall for 2021-22 was $33 million, or roughly one-third the amount of the shortfall from 2020-21. The City was owed $13.6 million in VLF in 2021-22 and accounted for $11.7 million. As such, the City’s share of the county-wide VLF shortfall of $33 million was $1.9 million. The County submitted the claim for the 2021- 22 VLF shortfall to the State for consideration in August 2022.

Sales tax revenues, including the Local 1% (Bradley Burns) and Local 0.25% (Measure S), were $4.6 million more than the prior fiscal year. As noted earlier, sales tax revenues recovered from the pandemic-driven recession faster than anticipated, and returned to the pre-pandemic baseline from 2018-19, largely buoyed by the general retail, food products, and transportation sectors.

Other tax revenues, including RPTT and TOT, increased by $6.2 million or 28.2% compared to the prior fiscal year. RPTT represented over 40% of the increase in other taxes, reflecting the continued demand for real estate in San Mateo, though the impact of the trend in escalating interest rates is expected to dampen RPTT revenues in subsequent fiscal years. While TOT revenues have not yet recovered back to the pre-pandemic 2018-19 baseline, they increased from $0.9 million in the prior fiscal year to $3.9 million in 2021-22. Staff will continue to monitor the recovery and adjust its long-term assumptions accordingly.

The General Fund accounted for $135.7 million in total expenditures, which was an increase of $9.0 million compared to the prior fiscal year. Approximately half of the year-over-year increase was attributable to public safety. Police Department expenditures increased by $3.7 million, largely due to negotiated increases in employee compensation. The City’s operating contribution to the San Mateo Consolidated Fire Department increased by $1.4 million, also primarily reflecting negotiated increases in employee compensation. Parks and recreation expenditures increased by $1.9 million, which represented a return of recreational programs and classes that were cancelled in 2020-21 due to the pandemic.

Proprietary Funds
The Sewer Fund’s total net position increased from $228.1 to $278.6 million, an increase of $50.5 million or 22.1%, largely driven by the rate payer-approved increase of 13%. The rate increase in 2021-22 was the fourth year of a five year rate plan that began in fiscal year 2018-19. In addition to shifting the rate to be 50% volumetric and 50% fixed cost to provide greater revenue stability, the significant rate increases also provide a critical funding source for the Clean Water Program and ensures that the Sewer Enterprise Fund has the cash position and debt service coverage ratio that is consistent with a viable and sustainable enterprise and commensurate with its high credit rating, as well as compliant with its debt indenture requirements. Cash and investments increased from $62.7 million to $103.3 million as a result of the rate increase, while restricted cash and investments increased from $97.2 million to $252.6 million reflecting the closing of the 2021 Wastewater Notes Series B, which took advantage of the interest rate spread between the loans from the Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act (WIFIA) and interest rates that were available for short-term notes at the time. Total capital assets increased from $403.7 million to $552.0 million, a $148.3 million (36.7%) increase, representing the addition of new capital assets from the Clean Water Program.

ADDITIONAL FINANCIAL STATEMENTS
The Measure S Oversight Committee formally accepted the Independent Accountant’s Report on Agreed-Upon Procedures Applied to Schedule of Measure S Revenues and Expenditures, included as Att 2, pursuant to the San Mateo Municipal Code at its special meeting on November 15, 2022.

5 of 210

CITY OF SAN MATEO
3 7
9 8
BUDGET IMPACT:

Excluding transfers in, the amended 2021-22 budget assumed that the City would account for $141.7 million in General Fund total revenues. Actual total revenues were $159.7 million; a favorable variance of $17.9 million or 12.7%.

Excluding transfers out, the amended 2021-22 budget assumed $141.5 million in General Fund total expenditures. Actual total expenditures were $135.7 million; a favorable variance of $5.8 million or 4.1%.

ENVIRONMENTAL DETERMINATION:

These year-end financial reports are not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Annual Comprehensive Financial Report for the year ended June 30, 2022 Att 2 – Measure S Independent Accountant’s Report on Agreed-Upon Procedures Applied to Schedule of Measure S Revenues and Expenditures For the year ended June 30, 2022

STAFF CONTACT
Rich Lee, Director, Finance
[email protected]
(650) 522-7102

6 of 210

BASIC FINANCIAL STATEMENTS
25 DRAFT 11.30.2022 v2

7 of 210

This page intentionally left blank.
26 DRAFT 11.30.2022 v2

8 of 210

GOVERNMENT-WIDE FINANCIAL STATEMENTS
27 DRAFT 11.30.2022 v2

9 of 210

Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 295,485,042 $ 103,120,131 $ 398,605,173 $ Accounts receivable, net 3,648,545 7,184,515 10,833,060 Interest receivable 672,248 609,408 1,281,656 Taxes receivable 7,559,933 - 7,559,933 Grants receivable 1,572,789 - 1,572,789 Leases receivable - current 722,867 - 722,867 Prepaid items, inventory, and deposits 970,419 646 971,065 Internal balances - - - Total current assets 310,631,843 110,914,700 421,546,543 Noncurrent assets:

Restricted cash and investments 22,873,394 252,607,134 275,480,528 Investment in JPA 13,174,277 - 13,174,277 Leases receivable 2,964,496 - 2,964,496 Loans and notes receivable, net 4,337,414 27,046,216 31,383,630 Capital assets:

Non-depreciable 128,815,632 382,174,470 510,990,102 Depreciable, net 337,367,897 169,812,362 507,180,259 Total capital assets 466,183,529 551,986,832 1,018,170,361 Total noncurrent assets 509,533,110 831,640,182 1,341,173,292 Total assets 820,164,953 942,554,882 1,762,719,835

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 943,977 - 943,977 Related to OPEB 1,790,683 265,919 2,056,602 Related to pensions 24,215,572 1,929,376 26,144,948 Total deferred outflows of resources 26,950,232 2,195,295 29,145,527 June 30, 2022
Statement of Net Position
City of San Mateo
Primary Government
See accompanying Notes to the Basic Financial Statements. 28 DRAFT 11.30.2022 v2

10 of 210

Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 30,642,813 1,165,728 31,808,541 Retention payable 4,535,273 - 4,535,273 Accrued payroll 2,633,123 - 2,633,123 Deposits payable 9,775,779 1,057,257 10,833,036 Interest payable 611,926 10,961,527 11,573,453 Unearned revenue 2,595,241 - 2,595,241 Compensated absences - due within one year 891,418 117,948 1,009,366 Claims payable - due within one year 3,300,000 - 3,300,000 Landfill postclosure cost payable - due within one year 103,980 - 103,980 Long-term debt - due within one year 4,849,305 1,740,000 6,589,305 Total current liabilities 59,938,858 15,042,460 74,981,318 Noncurrent liabilities:

Net OPEB liability 6,541,578 971,430 7,513,008 Net pension liability 167,222,537 9,949,575 177,172,112 Compensated absences - due in more than one year 7,212,381 954,311 8,166,692 Claims payable - due in more than one year 10,769,000 - 10,769,000 Landfill postclosure cost payable - due in more than one year 1,455,715 - 1,455,715 Long-term debt - due in more than one year 88,957,076 633,639,651 722,596,727 Total noncurrent liabilities 282,158,287 645,514,967 927,673,254 Total liabilities 342,097,145 660,557,427 1,002,654,572

DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding - 603,823 603,823 Related to leases 3,394,304 - 3,394,304 Related to OPEB 3,246,801 482,156 3,728,957 Related to pensions 49,039,073 4,520,361 53,559,434 Total deferred inflows of resources 55,680,178 5,606,340 61,286,518

NET POSITION
Net investment in capital assets 397,780,546 135,235,423 533,015,969 Restricted:

Housing and economic development 10,446,108 - 10,446,108 Capital projects 28,445,068 - 28,445,068 Debt service 5,929,315 33,375,069 39,304,384 Other purposes 503,267 - 503,267 Total restricted 45,323,758 33,375,069 78,698,827 Unrestricted (deficit) 6,233,558 109,975,918 116,209,476 449,337,862$ 278,586,410$ 727,924,272$ Total net position Primary Government
City of San Mateo
Statement of Net Position (Continued)
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 29 DRAFT 11.30.2022 v2

11 of 210

Operating Capital
Charges for Grants an d Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:

Governmental activities:

General government 23,443,028$ 7,754,336 $ 9,695,656 $ 266,878 $ 17,716,870 $ Community development 20,402,608 10,420,500 705,562 386,989 11,513,051 Public safety 66,993,033 2,179,473 1,242,182 37,577 3,459,232 Public works 21,712,677 8,860,490 4,275,930 8,025,154 21,161,574 Parks and recreation 16,514,081 2,921,700 167,345 368,659 3,457,704 Golf 2,368,719 3,529,967 - - 3,529,967 Library 8,678,548 314,628 310,865 - 625,493 Interest on long-term debt 2,447,923 - - - - Total governmental activities 162,560,617 35,981,094 16,397,540 9,085,257 61,463,891 Business-type activities:

Sewer 41,868,215 71,491,119 - 21,355,870 92,846,989 Total business-type activities 41,868,215 71,491,119 - 21,355,870 92,846,989 Total primary government 204,428,832$ 107,472,213 $ 16,397,540 $ 30,441,127 $ 154,310,880 $

City of San Mateo
Statement of Activities and Changes in Net Position
For the Year Ended June 30, 2022
Program Revenues
See accompanying Notes to the Basic Financial Statements. 30 DRAFT 11.30.2022 v2

12 of 210

Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:

Governmental activities:

General government (5,726,158)$ - $ (5,726,158)$ Community development (8,889,557) - (8,889,557) Public safety (63,533,801) - (63,533,801) Public works (551,103) - (551,103) Parks and recreation (13,056,377) - (13,056,377) Golf 1,161,248 - 1,161,248 Library (8,053,055) - (8,053,055) Interest on long-term debt (2,447,923) - (2,447,923) Total governmental activities (101,096,726) - (101,096,726) Business-type activities:

Sewer - 50,978,774 50,978,774 Total business-type activities - 50,978,774 50,978,774 Total primary government (101,096,726) 50,978,774 (50,117,952) General Revenues and Transfers:

General revenues:

Taxes:

Property taxes 74,796,572 - 74,796,572 Sales taxes 33,408,980 - 33,408,980 Property transfer taxes 14,344,715 - 14,344,715 Transient occupancy taxes 4,552,323 - 4,552,323 Business license taxes 6,686,804 - 6,686,804 Franchise taxes 3,117,140 - 3,117,140 Other taxes 206,251 - 206,251 Total taxes 137,112,785 - 137,112,785 Investment income(loss) (6,317,294) (602,477) (6,919,771) Miscellaneous revenue 383,384 98,330 481,714 Transfers - - - Total general revenues and transfers 131,178,875 (504,147) 130,674,728 Change in net position 30,082,149 50,474,627 80,556,776 Net Position:

Beginning of year 419,255,713 228,111,783 647,367,496 End of year 449,337,862$ 278,586,410 $ 727,924,272 $
For the Year Ended June 30, 2022
Statement of Activities and Changes in Net Position (Continued) City of San Mateo
Net (Expense) Revenue
and Changes in Net Position
See accompanying Notes to the Basic Financial Statements. 31 DRAFT 11.30.2022 v2

13 of 210

This page intentionally left blank.
32 DRAFT 11.30.2022 v2

14 of 210

FUND FINANCIAL STATEMENTS
33 DRAFT 11.30.2022 v2

15 of 210

This page intentionally left blank.
34 DRAFT 11.30.2022 v2

16 of 210

Governmental Funds Financial Statements
General Fund - This fund accounts for all revenues an d expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In San Mateo, these services include general government, community development, public safety, public works, parks and recreation, golf, and library services.

Construction Services Special Revenue Fund - This fund accounts for revenue and expenditures of activities relating to building permits.

General Capital Projects Fund - This fund accounts for the expenditures for capital improvements for the City, including equipment, acquisition and construction of parks, recreation areas, public safety facilities or other public works. The primary sources of funding are intergovernmental revenues, Measure A (half cent sales tax), developer im
pact fees and transfers from other governmental funds.
35 DRAFT 11.30.2022 v2

17 of 210

Construction Services General
General Special Revenue Capital Projects
Fund Fund Fund
ASSETS
Cash and investments 115,397,361 $ 38,275,065 $ 61,694,786 $ Restricted cash and investments held by fiscal agents - - 22,787,895 Accounts receivable, net 2,273,021 - 1,353,136 Interest receivable 672,248 - - Taxes receivable 6,414,901 - 119,290 Grants receivable - - 725,906 Leases receivable 3,687,363 - - Prepaid items, inventory, and deposits 357,245 - 9,000 Due from other funds 1,871,935 - - Advances to other funds - - - Loans and notes receivable, net - - 263,319 Total assets 130,674,074$ 38,275,065$ 86,953,332$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 2,728,211$ 374,159$ 26,199,746$ Retention payable - - 4,535,273 Accrued payroll 2,633,123 - - Due to other funds - - - Advances from other funds - - - Deposits payable 9,065,436 592,572 - Unearned revenues 1,400,990 994,208 - Total liabilities 15,827,760 1,960,939 30,735,019

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 736,666 Related to leases
3,394,304 - -
Total deferred inflows of resources 3,394,304 - 736,666

Fund Balances:

Nonspendable 357,245 - 9,000 Restricted - - 41,981,046 Committed 16,294,331 36,314,126 13,491,601 Assigned 1,097,978 - - Unassigned (deficit) 93,702,456 - - Total fund balances 111,452,010 36,314,126 55,481,647 Total liabilities, deferred inflows of
resources, and fund balances 130,674,074$ 38,275,065$ 86,953,332$ Major Funds
City of San Mateo
Balance Sheet
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 36 DRAFT 11.30.2022 v2

18 of 210

Non-major Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments 47,109,729$ 262,476,941 $
Restricted cash and investments held by fiscal agents 85,499 22,873,394 Accounts receivable, net 14,293 3,640,450 Interest receivable - 672,248 Taxes receivable 1,025,742 7,559,933
Grants receivable 846,883 1,572,789
Leases receivable - 3,687,363 Prepaid items, inventory, and deposits - 366,245 Due from other funds - 1,871,935 Advances to other funds - -
Loans and notes receivable, net 4,074,095 4,337,414 Total assets 53,156,241$ 309,058,712 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 692,964$ 29,995,080 $
Retention payable - 4,535,273 Accrued payroll - 2,633,123
Due to other funds 1,871,935 1,871,935
Advances from other funds - - Deposits payable - 9,658,008
Unearned revenues 200,043 2,595,241
Total liabilities 2,764,942 51,288,660

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 553,774 1,290,440
Related to leases - 3,394,304 Total deferred inflows of resources 553,774 4,684,744

Fund Balances:

Nonspendable -
366,245
Restricted 35,163,673 77,144,719
Committed 16,075,762 82,175,820
Assigned - 1,097,978
Unassigned (deficit) (1,401,910) 92,300,546
Total fund balances 49,837,525 253,085,308
Total liabilities, deferred inflows of
resources, and fund balances 53,156,241$ 309,058,712$ City of San Mateo
Balance Sheet (Continued)
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 37 DRAFT 11.30.2022 v2

19 of 210

This page intentionally left blank.
38 DRAFT 11.30.2022 v2

20 of 210

Total Fund Balances - Total Governmental Funds 253,085,308$ Unavailable revenue recorded in the fund financial statements resulting from activities in which revenues were earned but funds were not available are reclassified as revenues in the Government-Wide Financial Statements. 1,290,440 Capital Assets used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.

Government-Wide Statement of Net Position 466,183,529
Less: ca
pital assets reported in Internal Service Funds (5,550,896) Total capital assets 460,632,633
Long-term liabilities are not due and payable in the current period and therefore were not reported in the Governmental Funds Balance Sheet.

Amount reported in Government-Wide Statement of Net Position Compensated absences - due within one year (891,418)
Compensated absences - due in more than one year (7,212,381) Long-term debt - due within one year (4,849,305)
Long-term debt - due in more than one year (88,957,076) Landfill postclosure cost payable - due within one year (103,980) Landfill postclosure cost payable - due in more than one year (1,455,715) Total long-term liabilities (103,469,875)
Deferred amounts related to the refunding o f long-term debt were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. This amount is to be amortized over the life of the long-term debt. 943,977
Investmen
t in joint ventures are not current financial resources. Therefore, the y were not reported in the Governmental Funds Balance Sheet. 13,174,277
Interest payable on long-ter m debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds. (611,926) Aggregate net pension liability and total OPEB liability used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.

Net pension liability (167,222,537)
Net OPEB liability (6,541,578)
(173,764,115)
Deferred outflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.

Amount reported in Government-Wide Statement of Net Position Deferred outflows of resources related to OPEB 1,790,683 Deferred outflows of resources related to pensions 24,215,572 Total deferred outflows of resources 26,006,255
Deferred inflows of resources related to OPEB and pensions are not available fo r current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.

Amount reported in Government-Wide Statement of Net Position Deferred inflows of resources related to OPEB (3,246,801) Deferred inflows of resources related to pensions (49,039,073) Total deferred inflows of resources (52,285,874)
Internal service funds are used by management to charge the cost of fleet management, risk management, information technology, and building maintenance to individual funds. The assets and liabilities of the internal service funds are included in the
governmental activities in the statement of net position. 24,336,762 Net Position of Governmental Activities 449,337,862$
Amounts reported for Governmental Activities in the Statement of Net Position were different because:

City of San Mateo
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 39 DRAFT 11.30.2022 v2

21 of 210

Construction Services General
General Special Revenue Capital Projects
Fund Fund Fund
REVENUES:

Property taxes 72,348,402$ - $ - $ Sales taxes 29,123,009 - 4,285,971 Other taxes 28,256,902 - - Licenses, building and other permits 48,351 6,346,921 - Fines, forfeitures and penalties 1,454,845 - - Intergovernmental 12,233,722 - 4,343,806 Charges for services 11,797,192 2,453,808 399,223 Investment income (loss) (3,243,002) (1,059,345) 105,689 Assessments and garbage collection - - 539,889 Parking meter and lease revenue 4,281,255 - 1,526,038 Impact fees - - 588,823 Capital contributions - - - Other revenues 3,370,229 - 829,021 Total revenues 159,670,905 7,741,384 12,618,460 EXPENDITURES:

Current:

General government:

City Council 304,993 - - City Manager 2,203,029 99,736 - City Clerk 896,186 - - City Attorney 1,106,200 185,434 - Finance 3,904,497 - - Information technology 3,902,047 118,351 - Human Resources 2,104,302 - - Community development 1,618,051 9,193,684 - Public safety:

Police 51,417,279 - - Fire 25,222,796 - - Public works 6,892,686 806,410 - Parks and recreation 16,243,201 - - Golf 2,368,719 - - Library 7,645,003 - - Non-departmental 8,244,606 - - Capital outlay - - 31,859,240 Debt service:

Principal 1,421,086 - 545,938 Interest and fiscal charges 251,603 - 85,512 Total expenditures 135,746,284 10,403,615 32,490,690 REVENUES OVER (UNDER) EXPENDITURES 23,924,621 (2,662,231) (19,872,230) OTHER FINANCING SOURCES (USES):

Transfers in 312,896 - 11,554,194 Transfers out (4,743,762) (2,387,568) - Total other financing sources (uses) (4,430,866) (2,387,568) 11,554,194 NET CHANGE IN FUND BALANCES 19,493,755 (5,049,799) (8,318,036) FUND BALANCES:

Beginning of year 91,958,255 41,363,925 63,799,683 End of year 111,452,010$ 36,314,126$ 55,481,647$ Major Funds
For the Year Ended June 30, 2022
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of San Mateo
See accompanying Notes to the Basic Financial Statements. 40 DRAFT 11.30.2022 v2

22 of 210

Non-major Total
Governmental Governmental
Funds Funds
REVENUES:

Property taxes 2,448,170$ 74,796,572$
Sales taxes - 33,408,980
Other taxes 650,331 28,907,233
Licenses, building and other permits 132,980 6,528,252 Fines, forfeitures and penalties 746,327 2,201,172 Intergovernmental 6,708,669 23,286,197
Charges for services 2,107,813 16,758,036 Investment income (loss) (1,297,406) (5,494,064) Assessments and garbage collection 1,708,414 2,248,303 Parking meter and lease revenue - 5,807,293 Impact fees 25,067 613,890
Capital contributions 750,000 750,000 Other revenues 831,580 5,030,830
Total revenues 14,811,945 194,842,694
EXPENDITURES:

Current:

General government:

City Council - 304,993
City Manager - 2,302,765
City Clerk - 896,186
City Attorney - 1,291,634 Finance - 3,904,497
Information technology - 4,020,398 Human resources - 2,104,302 Community development 10,119,895 20,931,630 Public safety:

Police 336,968 51,754,247
Fire - 25,222,796
Public works 3,711,144 11,410,240
Parks and recreation 16,866 16,260,067 Golf - 2,368,719
Library - 7,645,003
Non-departmental - 8,244,606 Capital outlay 89,551 31,948,791
Debt service:

Principal 2,724,700 4,691,724
Interest and fiscal charges 2,613,731 2,950,846 Total expenditures 19,612,855 198,253,444
REVENUES OVER (UNDER) EXPENDITURES (4,800,910) (3,410,750) OTHER FINANCING SOURCES (USES):

Transfers in 3,052,125 14,919,215
Transfers out (7,368,898) (14,500,228)
Total other financing sources (uses) (4,316,773) 418,987 NET CHANGE IN FUND BALANCES (9,117,683) (2,991,763) FUND BALANCES:

Beginning of year 58,955,208 256,077,071
End of year 49,837,525$ 253,085,308$
City of San Mateo
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 41 DRAFT 11.30.2022 v2

23 of 210

Total Fund Balances - Total Governmental Funds (2,991,763)$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position the cost of those assets was allocated over their estimated useful lives as depreciation expenses. This is the amount of capital assets recorded in the current period (net of $567,390 added in internal service funds) includes repairs and maintenance costs of $55,072. 31,893,719 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position, but they did not require the use of current financial resources. Therefore, depreciation expense, net of internal service funds of $1,274,482, was not reported as expenditures in the Governmental Funds. (19,392,404) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased net position. (2,504,882)
Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position Principal payment of long-term debt 4,691,724
Amortization of bond premium 582,691
Deferred amounts related to the refunding of long-term debt were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. This amount is to be amortized over the life of the long-term debt. (122,345)
Interest expense on long-ter
m debt was reported in the Government-Wid e Statement of Activities, but it did not require the use of current financial resources. This amount represented the changes in accrued interest from prior year. 42,577 Payment of landfill closure and postclosure cost payable was an expenditure in governmental funds, but the payment reduced landfill closure and postclosure cost liabilities in the Government-Wide Statement of Net Position. Increases in the liability were reflected as expenses in the Government-Wide Statement of Activities, however, no expenditures are reported in the governmental funds. (61,430)
Compensate
d absences expenses reported in the Government-Wid e Statement of Activities do not require the use o f current financial resources and, therefore, are not reported as expenditures in the governmental funds. 978,813 Revenues that are not considered to be available are reported as unavailable revenues in the governmental funds, however, these amounts are recognized in the Government-Wide Statement of Activities. This amount represents the change in unavailable revenues. (1,376,697)
Investmen
t in joint ventures are not current financial resources. Therefore, the y were not reported in the Governmenta l Funds Balance Sheet. 2,319,471
Certain pension expenses reported in the Government-Wid e Statement of Activities do not require the use o f current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in pension related deferred outflows of resources (3,876,062) Changes in net pension liabilities 64,378,328
Changes in pension related deferred inflows of resources (48,878,676) Certain OPEB expenses reported in the Government-Wid e Statement of Activities do not require the use o f current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in OPEB related deferred outflows of resources 176,577 Changes in total OPEB liabilities 2,667,780
Changes in OPEB related deferred inflows of resources (1,007,362) The internal service funds are used by management to charge the costs of fleet maintenance, facilities maintenance, and technology to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 2,562,090
Change in Net Position of Governmental Activities 30,082,149$ Amounts reported for Governmental Activities in the Statement of Net Position were different because:

City of San Mateo
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 42 DRAFT 11.30.2022 v2

24 of 210

Proprietary Funds Financial Statements
Sewer Fund - This fund is used to account for the activities of the City's wastewater collection and treatment operations.

Internal Service Funds - These funds are used to provide goods and services by one department or agency to other departments or agencies of the City on a cost reimbursement basis. 43 DRAFT 11.30.2022 v2

25 of 210

Major Funds Governmental
Activities
Sewer Internal
Fund Service Funds
ASSETS
Current assets:

Cash and investments 103,120,131$ 33,008,101 $
Accounts receivable, net 7,184,515 8,095
Interest receivable 609,408 -
Due from other funds - 110,898 Prepaid items, inventory, and deposits 646 604,174 Total current assets 110,914,700 33,731,268
Noncurrent assets:

Restricted cash and investments 252,607,134 -
Loans and notes receivable, net 27,046,216 - Capital assets:

Non-depreciable 382,174,470 -
Depreciable, net 169,812,362 5,550,896
Total capital assets 551,986,832 5,550,896
Total noncurrent assets 831,640,182 5,550,896
Total assets 942,554,882 39,282,164

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 265,919 -
Related to pensions 1,929,376 -
Total deferred outflow of resources 2,195,295 -

LIABILITIES
Current liabilities:

Accounts payable 1,165,728 647,733
Due to other funds - 110,898 Deposits payable 1,057,257 117,771
Interest payable 10,961,527 -
Compensated absences - due within one year 117,948 - Claims payable - due within one year - 3,300,000 Long-term debt - due within one year 1,740,000 - Total current liabilities 15,042,460 4,176,402 Noncurrent liabilities:

Net OPEB liability 971,430 -
Net pension liability 9,949,575 -
Compensated absences - due in more than one year 954,311 - Claims payable - due in more than one year - 10,769,000 Long term debt - due in more than one year 633,639,651 - Total noncurrent liabilities 645,514,967 10,769,000 Total liabilities 660,557,427 14,945,402

DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding 603,823 -
Related to OPEB 482,156 -
Related to pensions 4,520,361 -
Total deferred inflows of resources 5,606,340 -

NET POSITION
Net investment in capital assets 135,235,423 5,550,896 Restricted for debt service 33,375,069 -
Unrestricted 109,975,918 18,785,866
Total net position 278,586,410$ 24,336,762 $
June 30, 2022
Proprietary Funds
Statement of Net Position
City of San Mateo
See accompanying Notes to the Basic Financial Statements. 44 DRAFT 11.30.2022 v2

26 of 210

Major Funds Governmental
Activities
Sewer Internal
Fund Service Funds
OPERATING REVENUES:

Charges for services 71,355,379$ 53,396,864$
Connection fees 135,740 -
Impact fees 73,908 -
Other 98,330 32,784
Total operating revenues 71,663,357 53,429,648 OPERATING EXPENSES:

Costs of sales and services 21,071,196 16,880,063 Administration 3,337,533 31,513,794
Depreciation and amortization 5,596,291 1,274,482 Total operating expenses 30,005,020 49,668,339

OPERATING INCOME (LOSS) 41,658,337 3,761,309 NONOPERATING REVENUES (EXPENSES):

Investment income (602,477) (823,231)
Gain (loss) on sale of capital assets - 42,999 Interest expense (11,863,195) -
Total nonoperating revenues (expenses) (12,465,672) (780,232)

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 29,192,665 2,981,077

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 21,281,962 -
Transfers in - 410,000
Transfers out - (828,987)
Total capital contributions and transfers 21,281,962 (418,987) Changes in net position 50,474,627 2,562,090 NET POSITION:

Beginning of year 228,111,783 21,774,672
End of year 278,586,410$ 24,336,762$
For the Year Ended June 30, 2022
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position City of San Mateo
See accompanying Notes to the Basic Financial Statements. 45 DRAFT 11.30.2022 v2

27 of 210

Major Funds Governmental
Activities
Sewer Internal
Fund Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 83,887,316$ 54,118,867 $ Cash payments to suppliers for goods and services (2,868,803) (35,217,374) Cash payments to employees for services (22,782,823) (16,880,063) Cash received from others 98,330 788,784 Net cash provided by operating activities 58,334,020 2,810,214 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash contributions to other agencies - - Interfund borrowing (lending) - 337,056 Repayment of interfund borrowing (lending) - (337,056) Transfers in - 410,000
Transfers out - (828,987)
Net cash (used in) noncapital financing activities - (418,987)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Cash capital contributions 21,281,962 -
Proceeds from sale of capital assets - 42,999 Acquisition of capital assets, net (175,818,135) (552,733) Proceeds from issuance of debt 340,041,533 -
Principal payment of long-term debt (20,820,000) - Interest paid on debt and fiscal charges (26,039,852) - Net cash (used in) capital and related financing activities 138,645,508 (509,734) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest from investments (1,211,885) (823,231) Net cash provided by investing activities (1,211,885) (823,231) Net change in cash and cash equivalents 195,767,643 1,058,262 CASH AND CASH EQUIVALENTS:

Beginning of year 159,959,622 31,949,839
End of year 355,727,265$ 33,008,101 $

RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO STATEMENT OF NET POSITION:

Cash and cash investments 103,120,131$ 33,008,101 $ Restricted cash and investments 252,607,134 - Total cash and cash equivalents 355,727,265$ 33,008,101 $ For the Year Ended June 30, 2022
Proprietary Funds
Statement of Cash Flows
City of San Mateo
See accompanying Notes to the Basic Financial Statements. 46 DRAFT 11.30.2022 v2

28 of 210

Major Funds Governmenta l
Activities
Sewer Internal
Fund Service Funds

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

Operating income (loss) 41,658,337$ 3,761,309 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 5,596,291 1,274,482
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 12,751,434 722,003
Prepaid items, inventory, and deposits (11) - Deferred outflows - OPEB related (26,222) - Deferred outflows - pension related 573,958 - Accounts payable 470,491 16,919
Retention payable (1,750) -
Accrued payroll - -
Deposits payable (429,145) 18,501
Unearned revenue - -
Compensated absences (161,370) -
Claims payable - (2,983,000) Net OPEB liability (396,169) -
Net pension liability (6,371,780) -
Deferred inflows - OPEB related 149,595 - Deferred inflows - pension related 4,520,361 - Total adjustments 16,675,683 (951,095)
Net cash provided by operating activities 58,334,020$ 2,810,214$ For the Year Ended June 30, 2022
City of San Mateo
Statement of Cash Flows (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 47 DRAFT 11.30.2022 v2

29 of 210

This page intentionally left blank.
48 DRAFT 11.30.2022 v2

30 of 210

Fiduciary Funds Financial Statements
Custodial funds - These funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private purpose trust funds. This includes the San Mateo Consolidated Fire Department Custodial Fund, CFD 2008-1 Custodial Fund, and Other Custodial Fund.

Private Purpose Funds - These funds account for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property). This includes the Successor Agency Private Purpose Trust Fund. 49 DRAFT 11.30.2022 v2

31 of 210

This page intentionally left blank.
50 DRAFT 11.30.2022 v2

32 of 210

Custodial Private Purpose
Funds Trust Funds
ASSETS
Cash and investments 188,471$ 4,990,852 $
Restricted cash and investments with fiscal agent 88,946,410 - Total assets 89,134,881 4,990,852

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 420,532 Total deferred outflows of resources - 420,532

LIABILITIES
Accounts payable 150,652 -
Interest payable - 865,690
Long-term debt - due within one year - 3,900,000 Long-term debt - due in more than one year - 42,645,627 Total liabilities 150,652 47,411,317

DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding - 43,377 Total deferred inflows of resources - 43,377

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments 88,984,229 - Held in trust for dissolution of RDA - (42,043,310) Total net position (deficit) 88,984,229$ (42,043,310)$ City of San Mateo
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 51 DRAFT 11.30.2022 v2

33 of 210

Custodial Private Purpose
Funds Trust Funds
ADDITIONS:

Fee collections for other governments 521,269 $ - $ Special assessments for other governments 5,630,130 - Investment income 7,310 40
RDA property tax trust fund distribution - 5,994,710 Proceeds from conduit debt issuance 78,183,627 - Total additions 84,342,336 5,994,750
DEDUCTIONS:

Administration 114,485 20,000
Payments on conduit bonds - principal 835,000 - Payments on conduit bonds - interest 4,498,226 - Project payments 1,363,033 -
Payments to other governments 422,155 - Other 1,751,211 -
Interest expense - 1,624,067 Total deductions 8,984,110 1,644,067
Change in net position 75,358,226 4,350,683 NET POSITION (DEFICIT):

Beginning of year 13,626,003 (46,393,993)
End of period 88,984,229$ (42,043,310) $
City of San Mateo
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 52 DRAFT 11.30.2022 v2

34 of 210

53 NOTES TO THE BASIC FINANCIAL STATEMENTS
DRAFT 11.30.2022 v2

35 of 210

54 This page intentionally left blank.

DRAFT 11.30.2022 v2

36 of 210

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

55 Page

Note 1 – Summary of Significant Accounting Policies ............................................................................................. 59

A. Financial Reporting Entity .................................................................................................... .................... 59 B. Basis of Presentation, Accounting and Measurement Focus ..................................................................... 60 C. Deferred Outflows and Inflows of Resources ........................................................................................... 63 D. Cash, Cash Equivalents and Investments .................................................................................................. 64 E. Restricted Cash and Investments ............................................................................................................... 65 F. Receivables ................................................................................................................................................ 65 G. Interfund Transactions ............................................................................................................................... 65 H. Inventories and prepaid items .................................................................................................................... 65 I. Leases ........................................................................................................................................................ 65 J. Capital Assets ............................................................................................................................................ 67 K. Long Term Debt ........................................................................................................................................ 68 L. Compensated Absences ............................................................................................................................. 68 M. Claims and Judgements Payable ................................................................................................................ 68 N. Pension Plans ............................................................................................................................................. 69 O. Other Postemployment Benefits (OPEB) .................................................................................................. 69 P. Fund Balances ................................................................................................................. .......................... 70 Q. Net Position ............................................................................................................................................... 70 R. Property Taxes ........................................................................................................................................... 71 S. Use of Accounting Estimates ................................................................................................... ................. 71 T. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 ............................... 71 U. Upcoming Government Accounting Standards Implementations ............................................................. 72

Note 2 – Cash and Investments .................................................................................................................................. 74

A. Demand Deposits ....................................................................................................................................... 74 B. Investments Authorized by the California Government
Code and the City’s Investment Policy ............................................................................................... 74 C. Fair Value Measurement ........................................................................................................................... 75 D. Risk Disclosure .......................................................................................................................................... 77 E. Investment in State Investment Pool ......................................................................................................... 80 F. Investment in California Asset Management Program (CAMP) ............................................................... 81 G. Investment in San Mateo County Investment Pool ................................................................................... 81

Note 3 – Loans and Notes Receivable ........................................................................................................................ 82

Note 4 – Leases Receivable ......................................................................................................................................... 88

Note 5 – Interfund Receivables, Payables, and Transfers ....................................................................................... 89

A. Due To / From Other Funds ...................................................................................................................... 89 B. Transfers .................................................................................................................................................... 89

DRAFT 11.30.2022 v2

37 of 210

City of San Mateo
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022

56 Page

Note 6 – Capital Assets ............................................................................................................................................... 90

A. Governmental Activities ............................................................................................................................ 90 B. Business-Type Activities ........................................................................................................................... 90

Note 7 – Long-Term Liabilities .................................................................................................................................. 92

A. Summary ....................................................................................................................... ............................ 92 B. Governmental Activities ............................................................................................................................ 93 C. Business-Type Activities ........................................................................................................................... 98 D. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of San Mateo ...................................................................................................... ................... 101

Note 8 – Special Assessment Debt with No City Commitment ...................................................................... ....... 103

Note 9 – Compensated Absences .............................................................................................................................. 104

A. Governmental Activities .......................................................................................................................... 104 B. Business-Type Activities ......................................................................................................................... 104

Note 10 – Landfill Closure ........................................................................................................................................ 105

Note 11 – Pension Plans ............................................................................................................................................ 105

A. Summary ....................................................................................................................... .......................... 105 B. General Information about Pension ......................................................................................................... 106 C. Social Security ......................................................................................................................................... 112

Note 12 – Other Postemployment Benefits ............................................................................................................. 113

A. Summary ....................................................................................................................... .......................... 113 B. General Information about OPEB ........................................................................................................... 113 C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB ...................................................................................................... 114

Note 13 – Risk Management ..................................................................................................................................... 117

A. Coverage .................................................................................................................................................. 117 B. Claims Activity ........................................................................................................................................ 117

Note 14 – Joint Ventures ...................................................................................................... .................................... 117

Note 15 – Other Required Disclosures .................................................................................................................... 119

A. Deficit Fund Balances/Net Pension ......................................................................................................... 119 B. Expenditures Exceeding Appropriations ................................................................................................. 119

DRAFT 11.30.2022 v2

38 of 210

City of San Mateo
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022

57 Page

Note 16 – Fund Balance Classification .................................................................................................................... 120

Note 17 – Successor Agency Private Purpose Trust For Assets of Former Redevelopment .............................. 120

Note 18 – Commitments and Contingencies ........................................................................................................... 122

A. Litigation ................................................................................................................................................. 122 B. Contingent Liabilities .............................................................................................................................. 122 C. Federal and State Grants .......................................................................................................................... 122 D. Contractual Commitments ....................................................................................................................... 122

DRAFT 11.30.2022 v2

39 of 210

58 This page intentionally left blank.

DRAFT 11.30.2022 v2

40 of 210

City of San Mateo
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021

59 Note 1 – Summary of Significant Accounting Policies

The basic financial statements of the C ity of San Mateo, California (City) have been prepared in conformity with Generally Accepted Accounting Principles of the United St ates of America (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boar d (GASB) is the accepted standard-setting body for establishing governmental accounting and fi nancial reporting standards in the United States. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity

The City of San Mateo (City) was incorporated as a char ter city on September 4, 1894; the current charter was adopted in 1971 and revised in 2002. The City opera tes under the Council-Manager form of government and provides the following services: police; building inspection; parks and streets; sanitation; leisure services; planning and zoning; general administration services; and redevelopment.

Blended Component Units

The financial reporting entity consists of the primary government, the City , and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be othe r organizations for which the primary government is accountable and their exclusion would cause the reporting en tity’s financial statements to be misleading or incomplete.

Blended component units, although legally separate entities, are, in subs tance part of the government’s operation and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government.

Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclus ively, benefits the City, even though it does not provide services directly to it.

San Mateo Joint Powers Financing Authority (JPFA)

The San Mateo Joint Powers Financing Authority (JPFA) was created in 1993. The Financing Authority is a joint exercise of joint powers. The City Council serves as directors of the JPFA. The purpose of the JPFA is to act as a financing/lending type of entity only. No separate annual financial statements are prepared for the JPFA. Since the City Council previously served as the government board for this component unit, the City’s component unit was considered to be a blended component unit. Blended co mponent units, although lega lly separate entities, are in substance, part of the City’s operations and financial information was reported with the primary government.

DRAFT 11.30.2022 v2

41 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

60 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Presentation, Accounting and Measurement Focus

The accounts of the City are organized on the basis of fu nds, each of which is cons idered a separate accounting entity. The operations of each fund are accounted for by pr oviding a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Fund acc ounting segregates funds according to their intended purpose and is used to aid management in demonstrati ng compliance with finance-re lated legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.

Government-Wide Financial Statements

The City’s Government-Wide Financial Statements incl ude a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and lia bilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accomp anying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expe nses, gains, losses, assets, deferred outflows of resources, liabilities and deferred inflows of resources resulting from non-exchange transactions are recognized in accordance with the requirements of U.S. GAAP.

Program revenues include charges for services, special ass essments, and payments made by parties outside of the reporting government's citizenry if that money is restri cted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Program revenues for the City are classified in three categories:

 Charges for services
 Operating grants and contributions
 Capital grants and contributions

Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:

 Due to/from other funds
 Transfers in/out

DRAFT 11.30.2022 v2

42 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

61 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Presentation, Accounting and Measurement Focus (Continued)

Governmental Fund Financial Statements

Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances. An accompanying schedule is presented to reconcile and explain the differences in Net Position as presented in these statements to the Net Position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expend itures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expend itures of the current period. Measurable means that the amounts can be estimated, or otherwise determined. Ava ilable means that the amounts were collected during the reporting period or soon enough thereafter to be availa ble to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days for all revenues except grants, which use a six-month availability period.

Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in-lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected with in the availability period.

Other revenue items are considered to be measurable and available when cash is received by the government.

Revenue recognition is subject to the measurable and av ailable criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place.

Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as re venues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions have been recognized as revenues when all applicable eligibility requirements have been met.

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.

The City reports the following major governmental funds:

General Fund accounts for resources traditionally associated with governmental activities that are not required legally or by sound financial management to be accounted for in another fund.

Construction Services Special Revenue Fund accounts for revenue and expenditures of activities relating to building permits. These revenues have been committed by City Council for construction service activities.

General Capital Projects Fund accounts for the expenditu res for capital improvements for the City, including equipment, acquisition, and construc tion of parks, recreation areas, public safety facilities or other public works. The primary sources of funding are intergovernmental revenues, Measure A (half cent sales tax), developer impact fees, and transfers from other governmental funds.

DRAFT 11.30.2022 v2

43 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

62 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Presentation, Accounting and Measurement Focus (Continued)

Proprietary Fund Financial Statements

Proprietary Fund Financial Statements include a Statemen t of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include funds which provide services directly to other City funds. These areas of service include fleet maintenance, facilities maintenance, and comprehensive liability.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses a nd Changes in Fund Net Po sition presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been r ecorded as revenue and provisions have been made for uncollectible amounts.

Operating revenues in the proprietary funds are those re venues that are generated fro m the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

The City reports the following major proprietary funds:

Sewer Fund accounts for the activities of the wastewater collection and treatment system, which provides service to residents and the businesses of the City and some neighboring cities.

Internal service fund balances and activities have been combined with governmental activities in the Government- Wide Financial Statements, and are comprised of the following funds:

Workers’ Compensation Insurance Fund accounts for all workers’ compensation self-insurance activities.

Dental Self-Insurance Fund accounts for the City’s self-insurance activities related to the dental plan it provides to its employees.

Benefits Fund accounts for charges for other funds and e xpenditures relating to employee benefits other than those accounted for in the Workers’ Compensation and Dental Self-Insurance Funds.

Comprehensive Liability Insurance Fund accounts for general liability self-insurance transactions.

Vehicle and Equipment Replacement Fund accounts for ch arges to the City departments for funding and acquisition of replacement vehicles and equipment.

Fleet and Building Maintenance Fund accounts for the char ges to user departments and the expenses related to the maintenance of City vehicles and buildings.

DRAFT 11.30.2022 v2

44 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

63 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Presentation, Accounting and Measurement Focus (Continued)

Fiduciary Fund Financial Statements

Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.

Fiduciary fund types are accounted for according to the na ture of the fund. Custodial funds are used to report fiduciary activities that are not required to be reporte d in pension (and other empl oyee benefit) trust funds, investment trust funds, or private-purpose trust funds. Private-purpose trust funds account for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property). They are al so used to account for vari ous assessment districts for which the City acts as an agent for debt service activity, as the City is prohibited from levying additional taxes for these districts. Such funds incl ude Community Facilities Districts.

The City’s private purpose trust fund is a fiduciary fund type used by the City to report assets, liabilities and activities of the Successor Agency to th e Redevelopment Agency (Successor Agency) for the City of San Mateo.

Its results of operations are presented on the Statement of Changes of Fiduciary Net Position.

Successor Agency of the Redevelopment Agency for the City of San Mateo

The Redevelopment Obligation Retirement Fund was creat ed to serve as a custodian for the assets and to wind down the affairs of the RDA on February 1, 2012, pursuant to Assembly Bill x1 26. Its purpose is to expeditiously wind down the affairs of the dissolved Redevelopment Agency (RDA). The Successor Agency is a separate public entity from the City, subject to the direction of an oversight board. The City Council serves as the governing board of the Successor Agency. In gene ral, the Successor Agency’s assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contract ual commitments). In future fiscal years, the Successor Agency will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of th e former RDA until all enfor ceable obligations of the fo rmer RDA have been paid in full and all assets have been liquidated. Based upon the nature of the Su ccessor Agency’s custodial role, the Successor Agency has been included in the accompanying basic financial statements as a private purpose trust fund. In February 2015, the California Department of Finance (Finance) approved the City’s revised Long-Range Property Management Plan (LRPMP), with the assets deemed for governmental use and future development. The Department of Finance approved the amendment to the Last and Final ROPS, and its confirmation that this entire transaction would be considered the first of two allowed amendments to the Last and Final ROPS in a letter dated December 13, 2017.

C. Deferred Outflows and Inflows of Resources

The Statement of Net Position reports separate sectio ns for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets th at applies to future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.

Deferred Inflows of Resources represent an acquisition of net assets th at applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

DRAFT 11.30.2022 v2

45 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

64 Note 1 – Summary of Significant Accounting Policies (Continued)

D. Cash, Cash Equivalents and Investments

The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.

Investments are reported in the accompa nying financial statements at fair value, except for certain investment contracts that are reported at cost because they are not tran sferable and they have terms that are not affected by changes in market interest rates. Changes in fair value that occur du ring a fiscal year are recognized as investment income reported for that fiscal year, a nd may result in negative investment income in the accompanying financial statements. Investment income includes interest ear nings, changes in fair value, and any gains or losses realized up on the liquidation, maturity, or sale of investments.

Investment income earned by the pooled investments is allocated to the various funds b ased on each fund's average cash and investment balance, except for investme nt income associated with funds not legally required to receive pooled investment income which has been assigned to and recorded as revenue of the general fund, as provided by California Government Code Section 53647.

For purposes of the statemen t of cash flows, amounts reported as cash and cash equivalents, include amounts on deposit in the City pool and any short-term, highly liqui d investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.

Certain disclosure requirements, if applicable, for deposits and investment risks in the following areas:

 Interest rate risk
 Credit risk
- Overall
- Custodial credit risk
- Concentration of credit risk
 Foreign currency risk

In addition, other disclosures are speci fied including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

U.S. GAAP establishes a framework fo r measuring fair value, and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

Levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quoted prices for iden tical assets or liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that refl ect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

DRAFT 11.30.2022 v2

46 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

65 Note 1 – Summary of Significant Accounting Policies (Continued)

E. Restricted Cash and Investments

Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt, for acquisition and construction of capital projects, and to meet bond indenture debt reserve requirements.

F. Receivables

Customer or trade receivables are re ported as “accounts receivable” and ar e shown net of an allowance for uncollectible accounts based on hist orical and management estimates.

Noncurrent portions of long-term receivables (e.g., “notes receivable”) due to governmental fund types are reported in their respective balance sheets despite their spendi ng measurement focus. Recogn ition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables.

Noncurrent portions of long-term notes receivable are offset by restricted fund balance in the special revenue funds.

G. Interfund Transactions

Activity between funds that are representative of lending/ borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from othe r funds” or “advances to/from other funds” (i.e., the current portion of interfund loans). Any residual balances outst anding between the governmental activities and business- type activities are reported in the Governmental-Wide Financial Statements as “internal balances.”

H. Inventories and prepaid items

Inventory, consisting of expendable supplies, is valued at first in first out basis. The cost of governmental funds inventory is recorded as expenditure at the time the indi vidual inventory is consumed. Prepaid items are recorded at cost. Using the consumption method, prepaid items ar e recorded as expenditures over the period that service is provided. Reported inventory and prepai d items are equally offset by a fund balance reservation, which indicates that they do not constitute “available spendable resources” even though they are a component of current assets.

I. Leases

Lessee

The City has a policy to recognize a lease liability and a right ‐to‐use lease asset (lease as set) in the government‐ wide financial statements. The City recognizes lease liab ilities with an initial, individual value of $100,000 or more.

At the commencement of a lease, the C ity initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently , the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease asse ts into service. Lease assets are amor tized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

DRAFT 11.30.2022 v2

47 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

66 Note 1 – Summary of Significant Accounting Policies (Continued)

I. Leases (Continued)

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

 The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

 The lease term includes the noncancellable period of the lease. Lease paymen ts included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

Lessee

The City monitors changes in circum stances that would require a remeasureme nt of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with long- term debt on the Statement of net position.

Lessor

The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial Statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of r esources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circum stances that would require a remeasureme nt of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that ar e expected to significantly affect the amount of the lease receivable.

DRAFT 11.30.2022 v2

48 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

67 Note 1 – Summary of Significant Accounting Policies (Continued)

J. Capital Assets

Capital assets, which include property, plant, equipment, the right to use leased equipment, and infrastructure assets, are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. Such assets are reco rded at historical cost (except for intangible right‐to‐use lease assets, the measurement of which is discussed in note 1.I. above) or estimated historical cost if purchased or constructed. Donated assets are valued at the fair value of the assets on the date on which they were 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. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. The City utilizes a capitalization threshold of $5,000 - $25,000 depending on asset type.

Depreciation is charged to operations using the straight-line method over the estimated useful lives of the assets as follows:

Capitalization
Asset Type Threshold
General capital assets $10,000
Infrastructure capital assets $100,000
Intangible assets $1,000,000

Depreciation is charged to operations using the straight-line method over the estimated useful lives of the assets as follows:

Asset Type Years
Sewer treatment plant
and transmission lines up to 60
Buildings and improvements 20 - 40
M achinery and equipment 2 - 30
Infrastructure 25 - 60

For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City defines infrastruct ure as the basic physical asset s that allow the City to function. The assets include the streets, water purification and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storm water conveyance system, and buildings combined with the site amenities such as parking and la ndscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

For all other infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No.

34. The City appraised its own infrastructure as of July 1, 2002. The 2002 appraisal determined the original cost, which is defined as the actual cost to acquire new propert y in accordance with market prices at the time of first construction/acquisition. Original costs were developed in one of three ways:

1. Historical records;

2. Standard unit costs appropriate for the construction/acquisition date;

3. Present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date.

DRAFT 11.30.2022 v2

49 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

68 Note 1 – Summary of Significant Accounting Policies (Continued)

J. Capital Assets (Continued)

The accumulated depreciation from the date of constructi on/acquisition to the current date was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.

K. Long-Term Debt

Government-Wide Financial Statements and Proprietary Fund Financial Statements

Long-term debt and other financial obligations are reported as liabilities in the appropriate funds. Bond premiums and discounts are deferred and amortized over the life of the bonds using straight line method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are expensed when incurred. Gains or losses on bond refunding are reported as either deferred outflows of resources or deferred inflows of resources and amortized over the term of the related debt.

Governmental Fund Financial Statements

The governmental fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Shee t to the Government-Wide Statement of Net Position. Governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Debt issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

L. Compensated Absences

The City’s policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment upon separation from government service. The liability for such le ave is reported as incurred in the government-wide and proprietary fund financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable.

Government-Wide Financial Statements

For governmental and business-type activities, compensated absences are recorded as expenses when earned.

Fund Financial Statements

For governmental funds, compensated absences are recorded as expenditures in the year paid. The General Fund is typically used to liquidate compensated absences. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long- term liability of the fund.

M. Claims and Judgments Payable

The short-term and long-term workers’ compensation clai ms liability is reported in the Workers’ Compensation Insurance Internal Service Fund. The short-term and long-term general claims liability is reported in the Comprehensive Liability Insurance Intern al Service Fund. The short-term liability which will be liquidated with current financial resources is the amount of settlement reached, but unpaid, related to claims and judgments entered.

Under the modified accrual basis, the following revenue sources are considered to be susceptible to accrual property taxes, sales taxes, federal and state grants.

DRAFT 11.30.2022 v2

50 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

69 Note 1 – Summary of Significant Accounting Policies (Continued)

N. Pension Plans

For purposes of measuring the net pension liability, de ferred outflows of resources and deferred inflows of resources related to pensions, and pens ion expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 11). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The General Fund and Internal Service Funds are typically used to liquidate the pension liability related to the City's governmental activities while the pension liability for Bu siness-type activities is liquidated from the respective Enterprise Funds.

The following timeframes are used for pension reporting:

Pension
Valuation date June 30, 2020
Measurement date June 30, 2021
Measurement period July 1, 2020 to June 30, 2021

Gains and losses related to changes in total pension lia bility and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight- line over the average expected remaining service lives of all members that are provided with benefits (active, inac tive, and retired) as of the beginning of the measurement period.

O. Other Postemployment Benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB plan, the assets of which are held in an irrevocable trust, and additions to/deductions from the OPEB pl an’s fiduciary net position have been determined by an independent actuary (Note 11). For this purpose, benefit payments are recognized when currently due and payable in accordance with the bene fit terms. Investments are reported at fair value. The Enterprise Funds are used to liquidate the OPEB liability.

Generally accepted accounting principles require that the reported results must pertain to liability and fiduciary net position information within certain defined timeframes. For this report, the following timeframes are used:

OPEB
Valuation date June 30, 2021
Measurement date June 30, 2021
Measurement period July 1, 2020 to June 30, 2021

DRAFT 11.30.2022 v2

51 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

70 Note 1 – Summary of Significant Accounting Policies (Continued)

P. Fund Balances

In the Governmental Fund Financial Statements, fund balances are classified in the following categories:

Nonspendable – Items cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually requi red to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making (normally the governing body) and that remain bi nding unless removed in the same manner. The County Council is considered the highest auth ority for the City. A City Council resolution is required to have fund balance committed.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has not delegated the authority to assign fund balance to management.

Unassigned – This category is for any balances that have no restrictions placed upon them. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for speci fic purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

Q. Net Position

For the Government-Wide Financial Statements, net position is classified in the following categories:

Net Investment in Capital Assets component of net position consists of capital assets, net of accumulated depreciation and reduced by any debt outstanding and any deferred outflow s/inflows of resources related to such borrowings that are attributable to the acquisition, construction or improvement of those assets. If there are significant unspent related debt pr oceeds at year-end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of net investme nt in capital assets. Rather, that portion of the debt is offset by unspent proceeds.

Restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When both restricted and unrestricted resources are available for use, the City’s policy is to use restricted resources first, then unrestricted resources that are needed.

DRAFT 11.30.2022 v2

52 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

71 Note 1 – Summary of Significant Accounting Policies (Continued)

R. Property Taxes

San Mateo County (County) assesses properties and it bills , collects, and distributes property taxes to all taxing entities within its jurisdiction including the City. Under State law, known as the Teeter Plan, the County remits the entire secure amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are assessed on January 1. Secured property tax is due in two insta llments, on November 1 and March 1. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31. Collection of delinquent accounts is the responsibility of the County, which retains all penalties.

The term “unsecured” refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are levied provided they become available as defined above.

S. Use of Accounting Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and as sumptions, in some cases when applicable, that affect the amounts in the financial statements and the accompanying notes. Actual results could differ from the estimates.

T. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022

The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2022. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.

GASB Statement No. 87

In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of go vernments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were cl assified as operating leases and recognized as inflows of resources or outflows of resources based on the payment pr ovisions of the contract. It also establishes a single model for lease accounting based on the foundational principl e that leases are financings of the right to use an underlying asset. Implementation of this Statement had a si gnificant effect on the State’s financial statements for the year ended June 30, 2022.

GASB Statement No. 89

In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously w as accounted for in accordance with the requirements of paragr aphs 5–22 of Statement No. 62, Codification of Acc ounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for fina ncial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.

DRAFT 11.30.2022 v2

53 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

72 Note 1 – Summary of Significant Accounting Policies (Continued)

T. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 (Continued)

GASB Statement No. 92

In January 2020, GASB issued Statement No. 92, Omnibus 2020. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve consistency of authoritative literature by addressing practice issues that have been identified during implementation and a pplication of certain GASB Statements. Application of this statement did not have a ma terial effect on the City’s financial statements for the fiscal year ending June 30, 2022.

GASB Statement No. 93

In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or cha nging fallback provisions related to the reference rate. The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Application of this statement did not have a material eff ect on the City’s financial statements for the fiscal year ending June 30, 2022.

GASB Statement No. 97
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Defe rred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 . The primary objectives of this Statement are to (1) increase consistenc y and comparability related to the re porting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statemen ts; and (3) enhance the rele vance, consistency, and comparability of the accounting and financial reporting for Internal Re venue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.

U. Upcoming Government Accounting Standards Implementations

The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:

GASB Statement No. 91

In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt ob ligations by issuers and eliminate diversity in practice associated with (1) commitments extend ed by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt ob ligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures.

Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

DRAFT 11.30.2022 v2

54 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

73 Note 1 – Summary of Significant Accounting Policies (Continued)

U. Upcoming Government Accounting Standards Implementations (Continued)

GASB Statement No. 94

In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and publ ic-public partnership arra ngements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructur e or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 96

In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements . This Statement provides guidance on the accounting and fina ncial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 99

In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and a pplication of certain GASB Statements and (2) accounting and financial reporting for fi nancial guarantees. Application of this statement is effective for the Authority’s fiscal year ending June 30, 2023.

GASB Statement No. 100

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understanda ble, reliable, relevant, consistent, and comparable information for making d ecisions or assessing accountability. Application of this statement is effective for the Authority’s fiscal year ending June 30, 2024.

GASB Statement No. 101

In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain pr eviously required disclosures. Application of this statement is effective for the Authority’s fiscal year ending June 30, 2025.

DRAFT 11.30.2022 v2

55 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

74 Note 2 – Cash and Investments

Cash and investments are presented in the accompanying financial statements at June 30, 2022 as follows:

Fiduciary
Governmental Business-Type Fund Financial
Activities Activities Total Statements Total
Cash and investments
Held by City Treasury 295,485,042 $ 103,120,131 $ 398,605,173 $ 5,179,323 $ 403,784,496 $ Restricted cash and investments: Held by fiscal agents 22,873,394 252,607,134 275,480,528 88,946,410 364,426,938 Total cash and inv estments 318,358,436$ 355,727,265 $ 674,085,701 $ 94,125,733 $ 768,211,434 $ Government -Wide Statement of Net Position

Cash and investments at June 30, 2022, consisted of the following:

Cash on hand and deposits:

Cash on hand 21,751 $
Deposits with financial institution 15,416,162
Total cash on hand and deposits 15,437,913
Investments:

Local Area Investment Funds (LAIF) 63,818,048
CAMP 68,352,236
San Mateo County Pool 63,035,689
Investments 193,140,610
Total inv estments 388,346,583
Cash and investments with fiscal agent 364,426,938
Total cash and investments 768,211,434$

The City maintains a cash and investment pool for all funds. Certai n restricted funds that are held an invested by independent outside custodians throug h contractual agreements are not pooled. These restricted funds include cash and investment held by trustees.

A. Demand Deposits

The carrying amounts of the City’s demand deposits were $17,026,570 at June 30, 2022. Bank balances were $15,366,154 at that date, the total amount of which w as collateralized or insured with securities held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California ba nks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a se curity interest in such collateral su perior to those of a general creditor.

Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities mu st equal at least 110% of the City's cash deposits. California law also allows institutions to secure City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requiremen ts for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. In terest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

DRAFT 11.30.2022 v2

56 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

75 Note 2 – Cash and Investments (Continued)

B. Investments Authorized by the California Government Code and the City’s Investment Policy

The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk.

This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Ma x i m um Ma x i m um
Maximum Percentage Investment in
Authorized Investment Types Maturity of Portfolio One Issuer* Securities issued by the U.S. Treasury 5 years None None U.S. Agency Securities and Instrumentalies 5 years 70% 40% Mortgage-Backed Securities 5 years 20% 20%
Banker's acceptance 180 days 10% 5%
Repurchase agreements 90 days 10% 10%
Local Agency Investment Fund N/A 65% 65%
San Mateo County Pool N/A 30% 30%
California Asset Management Program N/A 20% 20%
Money Market/Mutual Funds N/A 20% 10%
Prime Commercial Paper 270 days 10% 5%
Medium-term Corporate Notes 5 years 30% 5%
Obligations of State of California or Other
California Local Agency 5 years 20% 5%
Non-negotiable Certificates of Deposit 3 years 30% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Asset-Backed Securities 5 years 10% 5%
Non-Agency M ort gage Securit ies 5 years 10% 5%
* Based on state law requirements or City investment policy requirements, whichever is more restrictive.

DRAFT 11.30.2022 v2

57 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

76 Note 2 – Cash and Investments (Continued)

C. Fair Value Measurement

At June 30, 2022, investments, excluding restricted cash a nd investments held by fiscal agent, are reported at fair value based on quoted market prices. The following tabl e presents the fair value measurements of investments recognized in the accompanying Statement of Net Position measured at fair value on a recurring basis and the level within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2022:

Percentage of
Investm ent Type Fair V alue Investments Level 1 Level 2 Level 3 Investments measured by fair v alue lev el:

U.S. G overnm ent Treasury and Agencies:

Federal Farm Credit Bank Bonds (FFCB) 15,232,805$ 3.92% -$ 15,232,805$ - $ Federal Home Loan Bank Bonds (FHLB) 54,877,008 14.13% - 54,877,008 - Federal Home Loan Mortg. Corp. (FHLMC) 5,852,365 1.51% - 5,852,365 - Federal Natl. Mortg. Assn. Notes (FNMA) 6,414,157 1.65% - 6,414,157 - US Treasuries 36,877,722 9.50% - 36,877,722 - Corporate Notes:

Amazon.com Inc 1,055,853 0.27% - 1,055,853 - Apple Inc 707,054 0.18% - 707,054 - Bank of America Corp 1,361,396 0.35% - 1,361,396 - Bank of Montreal 665,273 0.17% - 665,273 - Bank of NY Mellon Corp 742,194 0.19% - 742,194 - Berkshire Hathaway 813,492 0.21% - 813,492 - Caterpillar Financial Service 743,751 0.19% - 743,751 - Charles Schwab Corp 1,085,331 0.28% - 1,085,331 - Chubb INA Holdings Inc 983,266 0.25% - 983,266 - Honeywell Intl 678,309 0.17% - 678,309 - John Deere Capital Corp 978,590 0.25% - 978,590 - JP Morgan Chase & Co 1,266,515 0.33% - 1,266,515 - Metlife 1,905,668 0.49% - 1,905,668 - Morgan Stanley 843,293 0.22% - 843,293 - National Rural Utilities 976,348 0.25% - 976,348 - New York Life Global 691,628 0.18% - 691,628 - Paccar Financial Corp 563,256 0.15% - 563,256 - Royal Bank of Canada 1,508,148 0.39% - 1,508,148 - Salesforce.com Inc 700,864 0.18% - 700,864 - Target Corp 394,797 0.10% - 394,797 - Toronto-Dom inion Bank 2,919,292 0.75% - 2,919,292 - Toyota Motor Credit Corp 837,229 0.22% - 837,229 - Truist Financial Corp 401,863 0.10% - 401,863 - United Health Group Inc 1,607,052 0.41% - 1,607,052 - US Bank NA 1,009,495 0.26% - 1,009,495 - Wal-Mart Stores 1,138,444 0.29% - 1,138,444 - Negotiable CD 3,448,947 0.89% - 3,448,947 - Supranationa l 4,179,716 1.08% - 4,179,716 - Asset-Backed Securities 10,761,798 2.77% - 10,761,798 - Collateralized Mortgage Obligations 6,035,300 1.55% - 6,035,300 - Municipal Bonds 659,295 0.17% - 659,295 - Total investm ents subject to fair value 170,917,51 4 -$ 170,917,514$ -$ Investments not subject to the fair value hierarch y:

Money Market 22,223,096 5.72%
Local Agency Investment Fund 63,818,048 16.43% California Asset Managem ent Program 68,352,236 17.60% San Mateo County Pool 63,035,689 16.23%
Total inves tments 388,346,583$ 100.00%
Fair V alue Measurement Using
DRAFT 11.30.2022 v2

58 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

77 Note 2 – Cash and Investments (Continued)

C. Fair Value Measurement (Continued)

Treasury Securities, Federal Farm Credit Bank Bonds, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation Notes and Mortgage-Backed Securities, Federal National Mortgage Association Notes, and Corporate Notes categorized as Level 2 are valued based on matrix pricing which use observable market inputs such as yield curves and market indices that are derived principa lly from or corroborated by observable market data by correlation to other means. Property held for investment was categorized as Level 3 and was valued by a sale comparison appraisal approach, which was deri ved by using quoted prices of similar assets in active markets adjusted for differences betw een the City’s investment property and assets for which quotes were obtained. Investments included in restricted cash and in vestments included money ma rket accounts, guaranteed investment contracts, are not su bject to fair value hierarchy.

D. Risk Disclosure

Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rate will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by tim ing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity even ly over time as necessary to provide the cash flow and liquidity needed for operations.

As a means of maintaining liquidity, the City’s investment policy limits are as follows:

Maturity % of Portfolio
Up to six months 25% (Minimum)
Six months to five years 75% (Maximum)

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provide d by the following table that shows the distribution of the City’s investments by maturity. For purposes of the sche dule shown on the next page , any callable securities are assumed to be held to maturity.

DRAFT 11.30.2022 v2

59 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

78 Note 2 – Cash and Investments (Continued)

D. Risk Disclosure (Continued)

Disclosures Relating to Int erest Rate Risk (Continued)

Investment Type Fair Value 1 year or less 1-2 years 2-3 years 3-4 years 4 years or more Investments:

U.S. G overnment Treasury and Agencies:

Federal Farm Credit Bank Bonds (FFCB) 15,232,805$ - $ - $ 7,963,794$ - $ 7,269,011$ Federal Hom e Loan Bank Bonds (FHL B) 54,877,008 - - 12,524,825 20,948,518 21,403,665 Federal Home Loan Mortg. Corp. (FHLMC) 5,852,365 - 725,113 970,280 1,394,990 2,761,982 Federal Natl. Mortg. Assn. Notes (FNMA) 6,414,157 - 982,135 808,021 1,866,288 2,757,713 US Treasuries 36,877,722 - 17,964,879 3,349,691 10,299,157 5,263,995 Corporate Notes:

Am azon.com Inc 1,055,853 - - - - 1,055,853 Apple Inc 707,054 - - - - 707,054 Bank of America Corp 1,361,396 - - 498,539 - 862,857 Bank of Montreal 665,273 - - - - 665,273 Bank of NY Mellon Corp 742,194 - - - 742,194 - Berkshire Hathaway 813,492 - - - - 813,492 Caterpillar Financial Service 743,751 - - - 743,751 - Charles Schwab Corp 1,085,331 - - 407,921 - 677,410 Chubb INA Holdings Inc 983,266 - - - 983,266 - Honeywell Intl 678,309 - - - 678,309 - John Deere Capital Corp 978,590 - - 978,590 - - JP Morgan Chase & Co 1,266,515 - - 501,192 369,434 395,889 Metlife 1,905,668 - - - 730,280 1,175,388 Morgan Stanley 843,293 - - - - 843,293 National Rural Utilities 976,348 - - - - 976,348 New York Life Global 691,628 - - - 691,628 - Paccar Financial Corp 563,256 - - 563,256 - - Royal Bank of Canada 1,508,148 - - - 1,508,148 - Salesforce.com Inc 700,864 - - - 700,864 - Target Corp 394,797 - - - - 394,797 Toronto-Dom inion Bank 2,919,292 - - 1,031,240 1,888,052 - Toyota Motor Credit Corp 837,229 - - 225,372 611,857 - Truist Financial Corp 401,863 - - - - 401,863 United Health G roup Inc 1,607,052 - - - - 1,607,052 US Bank NA 1,009,495 - - - 1,009,495 - Wal-Mart Stores 1,138,444 - - - 969,993 168,451 Negotiable CD 3,448,947 - 3,448,947 - - - Supranational 4,179,716 - - - 1,404,879 2,774,837 Asset-Backed Securities 10,761,798 - 373,958 4,661,476 2,758,756 2,967,608 Collateralized Mortgage Obligations 6,035,300 - 183,989 900,486 964,238 3,986,587 Municipal Bonds 659,295 - - 659,295 - - Money Market 22,223,096 22,223,096 - - - - Local Agency Investment Fund 63,818,048 63,818,048 - - - - California Asset Managem ent Program 68,352,236 68,352,236 - - - - San Mateo County Pool 63,035,689 63,035,689 - - - - Total inv estments 388,346,583$ 217,429,069 $ 23,679,021 $ 36,043,978 $ 51,264,097 $ 59,930,418 $ Maturities (in years)

Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an i nvestment 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.

However, some issuers do not seek a credit rating. For instance, the California Local Agency Investment Fund (LAIF) has not sought or received a credit rating. In these cases, the purchaser is solely responsible for performing their own due diligence before purchasing an investment or participating in an external investment pool.

Certificates of deposit of $250,000 or less are fully insured by the Federal Deposit Insurance Corporation (FDIC), and therefore, do not seek a credit rating.

DRAFT 11.30.2022 v2

60 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

79 Note 2 – Cash and Investments (Continued)

D. Risk Disclosure (Continued)

Disclosures Relating to C redit Risk (Continued)

The City mitigates credit risk through diversification in its portfolio as outlined by the City’s Investment Policy.

The Investment Policy also guides the rating quality of purchased securities provided by Nationally Recognized Statistical Rating Organizations (NRSRO). As of June 30, 2022, the City’s deposits and investments were rated as follows:

Moody's S&P
Deposits P-1 to AA3 A-1+ to AA-
Investm ents:

Securities of U.S. G overnment Agencies:

Federal Farm Credit Bank Bonds (FFCB) Aaa AA+
Federal Hom e Loan Bank Bonds (FHLB) Aaa AA+
Federal Home Loan Mortg. Corp. Notes (FHLMC) Aaa AA+
Federal Home Loan Mortg. Corp.

Mortgage- Backed Security (FHLMC) Aaa AA+
Federal National Mortg. Assn. Notes (FNMA) Aaa AA+
US Treasuries Aaa AA+
Corporate Notes:

Am azon.com Inc A1 AA
Apple Inc Aaa AA+
Bank of Am erica Corp A2 A-
Bank of Montreal A2 A-
Bank of NY Mellon Corp A1 A
Berkshire Hathaway Aa2 AA
Caterpillar Financial Service A2 A
Charles Schwab Corp A2 A
Chubb INA Holdings Inc A3 A
Honeywell Intl A2 A
John Deere Capital Corp A2 A
JP Morgan Chase & Co A2 A-
Metlife Aa3 AA-
Morgan Stanley A1 A-
National Rural Utilities A1 A-
New Y ork Life G lobal Aaa AA+
Paccar Financial Corp A1 A+
Royal Bank of Canada A1 A
Salesforce.com Inc A2 A+
Target Corp A2 A
Toronto Dom inion Bank A1 A
Toyota Motor Credit Corp A1 A+
Truist Financial Corp A3 A-
United Health G roup Inc A3 A+
US Bank NA A1 AA-
Wal-Mart Stores Aa2 AA
Asset-Backed Securities Aaa to Not Rated AAA to Not Rated Collateralized Mortgage Obligations Aaa AA+
Municipal Bonds Aaa to Aa2 AA- to AAA
Local Agency Investment Funds Not Rated Not Rated
San Mateo County Pool Not Rated Not Rated
California Asset Managem ent Program Not Rated AAA m
Supranationa l Aaa AAA
Money Market Funds Aaa AAA
Credit Quality Ratings

DRAFT 11.30.2022 v2

61 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

80 Note 2 – Cash and Investments (Continued)

D. Risk Disclosure (Continued)

Disclosure Relating to Con centration of Credit Risk

The investment policy of the City contains requirements that no more than 5 percent of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy. GASB Statement No. 40 requires disclosure by amount and issuer, of investments in any one issuer that represent 5% or more of total investments. At June 30, 2022, there we no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represents 5% or more of the City's total investments.

Disclosures Relating to Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., br oker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:

The California Government Code requires that a financ ial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposi ted by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2022, the City’s deposits (bank balances) were collateralized under California Law.

E. Investment in State Investment Pool

The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2022 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:

Structured Notes are debt securities (other than asset-backed securities) whose cash -flow characteristics (coupon rate, redemption amount, or stated maturity) de pend upon one or more indices and/or that 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 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 $63,798,321 invested in LAIF, which had invested 1.10% of the pool investment funds in Structured Notes and Asset-Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2022, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was dete rmined by dividing all LAIF participants ’ total aggregate amortized cost by total aggregate fair value. The fair value of the City’s position in the pool is the same as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2022.

DRAFT 11.30.2022 v2

62 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

81 Note 2 – Cash and Investments (Continued)

F. Investment in California Asset Management Program (CAMP)

The City is a voluntary participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act for the purpose of exercising the common power of its Participants to inv est funds. The investments are limited to investments permitted by California Govern ment Code. The total amount invested by all public agencies in CAMP at June 30, 2022 was $7.3 billion. A boa rd of five trustees who are officials or employees of public agencies has oversight responsibility for CAMP. Th e value of the pool shares in CAMP, which may be withdrawn at any time, is determined on an amortized cost basis, which is different from the fair value of the City’s position in the pool. At June 30, 2022 the amortized cost approximated is the City’s cost.

G. Investment in San Mateo County Investment Pool

As of June 30, 2022, the City’s has an investment in the San Mateo County Investment Fund (County Pool) that is regulated by Code Section 16429 under the oversight of the Treasurer of the County. The City reports its investment in the County Pool at the fair value amount provided by the County. Included in the County Pool’s investment portfolio are US Treasury Notes, Obligations issued by agencies of the United States Government, LAIF, Corporate Notes, Commercial Paper, collatera lized mortgage obligations, mortgage -backed securities, other asset-backed securities, and floating rate securities issued by fede ral agencies, government-sponsored enterprises, and corporations. The fair value factor of 0.9688 was used to calculate the fair value of the investments in the County Pool. At June 30, 2022, the total amount invested by a ll public agencies in the County Pool was approximately $7.1 billion.

DRAFT 11.30.2022 v2

63 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

82 Note 3 – Loans and Notes Receivable

At June 30, 2022, notes receivable consisted of the following:

Allowance for Financial Unav ailable
Notes Receiv able Doubtful Accounts Statement Rev enue
Balance Balance Balance Balance
June 30, 2022 June 30, 2022 June 30, 2022 June 30, 2022 City:

Governmental Funds:

First-time Homebuyer Loans 15,002,997$ (10,665,583)$ 4,337,414$ 355,684$ Home Rehabilitation Loans 584,274 (584,274) - - 106 N. El Dorado 450,000 (450,000) - - Darcy Building 1,368,295 (1,368,295) - - Edgewater Isle Senior Apartments 5,020,948 (5,020,948) - - Belmont Building 800,000 (800,000) - - St. Matthew Hote l 2,764,950 (2,764,950) - - Rotary Hacienda & Rotary Floritas 5,013,830 (5,013,830) - - First Step for Families (Turning Point) 710,141 (710,141) - - 12 N. Idaho Street 100,000 (100,000) - - 200 S. Delaware Street 2,083,744 (2,083,744) - - 232 S. Humboldt Street 527,500 (527,500) - - 11 S. Delaware Street 1,230,136 (1,230,136) - - El Camino Family Housing 3,969,955 (3,969,955) - - MP San Mateo Transit Associates 8,355,040 (8,355,040) - - MP Delaware Pacific Associates LP 1,360,156 (1,360,156) - - MP Foster Squar e 371,657 (371,657) - - Gateway Commons Assessment Loan 393,059 (393,059) - - Cal Home Loans 263,318 (263,318) - - HIP Housing - 1100 Cypress Avenue 1,166,513 (1,166,513) - - Bay Meadows Affordable Association 2,000,000 (2,000,000) - - Child Care Facility Project Loans 550,300 (550,300) - - Total Governmental Fund 54,086,813 (49,749,399) 4,337,414 355,684 Total City 54,086,813$ (49,749,399)$ 4,337,414$ 355,684$

First-Time Homebuyer Loans

The City has had provided various loan programs for fi rst time homebuyers since 1989. In general, they provide secondary financing for low and moderate income buyers in the City of Sa n Mateo that have de ferred payments in order to allow the buyer to maximize their purchasing capacity. The City, acting as the successor agency of the former redevelopment agency, engages in prog rams designed to encourage construction or improvement in low-to-moderate income housing or other projects. Under these programs, lo ans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. The amounts for potential loan forgiveness represent the best es timate of the amount of loans receivable th at may not be collectible from borrowers.

It does not necessarily reflect subsequent actual payments, which could differ from expectations.

DRAFT 11.30.2022 v2

64 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

83 Note 3 – Loans and Notes Receivable (Continued)

First-Time Homebuyer Loans (Continued)

The various loan terms are described below:

Gateway Commons Original Buyers – Second loans accrue interest that compounds annually. Interest accrues for 20 years. Starting in year 21, 10% of principal and accrued interest is forgiven until the loan is fully forgiven in year 30. Payment of principal and interest is paid upon sale of property. Units are sold at market value, and at that time, the City also receives as payment a share of the appr eciation based on the percentage of the City loan to original purchase price.

First Time Buyer Resale Program – Subsequent buye rs at Gateway Commons and other first time buyer complexes have different loan terms: Prior to 2007, second loans up to $60,000 accrue interest that is compounded annually. The resale price is restricted by applying the percentage increase in median income from the time of the purchase date to the sale date, to the initial sales price. The principal is repaid, but payment of the accrued interest is waived. The City has the first right to purchase to roll unit to a new eligible buyer at the restricted sales price.

If the City does not exercise the option to purchase, the unit can be sold at fa ir market value to a non-eligible buyer. In this case, the principal, interest, and appreciation share payment is paid to the City. After 2007, the second loans were restructured to eliminate the interest rate and appreciation share in the event the unit is sold to non-eligible buyer. Instead, “contingent interest” is paid to the City, which is determined by the difference between the restricted price and the actual sales price (market value).

Neighborhood Purchase Program – A second loan of up to 20% of the purchase price, or maximum of $60,000, accrues simple interest of 3% per year. This is an amor tized loan, where monthly payments are deferred for five years and then repaid over 25 years. This program is no longer active. There are no resale price restrictions.

Countywide Home Investment Partnership (CHIP) Program – This program provides a second loan of up to 20% of the purchase price, or maximum of $60,000. No interest and no payments are due for 10 years. Then payments are amortized at 4% for 25 years. Upon sale of the property or refinance, an appreciation share payment is due to the City.

Meadow Court Program – This program provides fi rst-time homebuyers down payment assistance for the purchase of units at Meadow Court. The loans are secure d by a second deed of trust with a term of 40 years and interest compounding annually. At year 31, provided that the property has not been sold or transferred, 10% of principal and interest will be forgiven each year until year 40, at which time the entire note is forgiven.

Home Rehabilitation Loans

The City has administered various housing rehabilitation loan programs using Community Development Block Grant funds, former Redevelopment Agency Housing Set-Aside funds, and City Housing funds. Under these Programs, individuals with incomes below a certain level are eligible to receive low interest, variable term loans, secured by deeds of trust for rehabilitation work on their homes. The maximum loan limit is $85,000 for standard properties and $100,000 for historic properties. The loan repayments may be amortized over the life of the loans, deferred, or a combination of both.

DRAFT 11.30.2022 v2

65 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

84 Note 3 – Loans and Notes Receivable (Continued)

106 N. El Dorado

The City loaned $450,000 to Housing Association fo r the Needy and Dispossessed, Inc. (HAND), a nonprofit organization, to acquire and rehabilitate six apartment units at 106 N. Eldorado for low-income housing. The loan bears no interest and is due in 40 years. If the property has not been sold or transferred, beginning in 2027, ten percent of the principal will be forgiven annually until 2036, at which time the entire loan principal will be forgiven.

Darcy Building

On June 30, 2000, the City and the former Redevelopment Agency made four loans, the proceeds of which were used to conduct substantial rehabilitation and residential conversion of the Darcy Building for low income households. The loans carry interest at rates that vary from 0% to 5% with a term of 30 years. If the property remains in the developer’s hands, two of the loans allow partial forgiveness beginning is year 30, with full forgiveness in year 40.

Edgewater Isle Senior Apartments

On June 30, 2000, the City and the fo rmer Redevelopment Agency made a lo an to the Human Investment Project (“HIP”) for the purchase and minor rehabilitation of 92 low and moderate income senior rental units at Edgewater Isle.

Payments of principal and 3% interest are deferred until 2048 or the sale or transfer of the property, whichever comes first.

Belmont Building

On June 30, 2000, the City and the form er Redevelopment Agency made two loans, the proceeds of which were used to convert the Belmont building into si x one-bedroom units for very low income families. The loans bear no interest and are for a term of 40 years. If the property remains in the developer’s hands, beginning in year 2023, ten percent of the principal will be forgiven annually until year 2032, at which time the entire loan principal will have been forgiven.

St. Matthew Hotel

On June 30, 2000, the City and the former Redevelopment Ag ency made a loan to a developer, who used these funds to rehabilitate this hotel into a single room occupancy development for very low-income households. Interest is at 0% to 3%; principal and interest are due in 2036. Annual payments on the 3% loan are based on available cash flow, if any.

Rotary Hacienda

In 1988, the former Redevelopment Ag ency entered into a Development a nd Disposition Agreement (“DDA”) with Rotary Hacienda Inc. for the construction and operation of an 82-unit senior rental housing project. The Agreement includes a promissory note in the amount of $968,383, which bears simple interest at a rate of 8.75% compounded annually, and is due on December 30, 2028. In 2004, the loan was recast for $968,000 with 0% interest, a 40-year term and no prepayment penalty.

Rotary Floritas

The former Redevelopment Agency provided $3,000,000 for the construction of 50 senior rental units at Rotary Floritas on March 24, 2006. The interest rate is 3% for 55 years. Annual payments of principal and interest are based on the “available cash flow” from the borrower’s preceding fiscal year.

DRAFT 11.30.2022 v2

66 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

85 Note 3 – Loans and Notes Receivable (Continued)

First Step for Families (Turning Point)

On June 26, 1988, the City provided zero interest deferre d loans of $69,262 in City CDBG funds and $305,000 in former Redevelopment Agency funds to Mid-Peninsula Coalition Belle Haven, Inc. (MPCBH), for the acquisition and development of an emergency housing shelter called Turning Point. In 2002, MPCBH redeveloped the site into a new facility consisting of both emergency beds and transitional housing units to assist 39 families. The original loans plus interest were recast effective on April 1, 2002, in the amounts of $95,320 and $419,566 respectively. The loans bear 3% interest; principal and accrued interest are due in 30 y ears. At the same time, the City provided an additional $500,000 ($143,500 CDBG a nd $356,500 HOME) for the new project. These loans bear 3% interest, and annual payments are based on “available cash flow”. As long as the facility is operated as emergency and transitional housing, 1/30 of the principal and accrued interest annually until it fully forgiven in 30 years.

12 N. Idaho Street

In 1994, HAND, Inc., a non-profit organization, received loans of $100,000 from the former Redevelopment Agency and $10,436 from the City to assist in the purchase of a six-unit apartment building located at 12 N. Idaho Street to be used as an affordable housing complex. The Agency loan carries an interest rate of 10% and is for a period of 40 years.

The City loan carries no interest and is for a period of 15 years. Principal payments on both loans are deferred until the earlier of sale or transfer of the property or the maturity date.

200 S. Delaware Street

On October 6, 1999, the City and the former Redevel opment Agency loaned $1,266,0 00 to HAND to acquire and rehabilitate sixteen units at 200 S. Delawa re Street for low-income housing. The loan bears an interest rate of 3%.

Principal and interest are due in 2049. HAND has an option of renewing the loan agreement for another fifty years.

232 S. Humboldt Street

On February 9, 2001, the City and the former Redevel opment Agency loaned $500,000 to Mateo Lodge, Inc., to rehabilitate nine units at 232 S. Humboldt Street for low- income housing. The loan bears an interest rate of 3%.

Principal and interest are due in 2021. Mateo Lodge, Inc. has an option of renewing the loan agreement for another twenty years.

11 S. Delaware Street

On June 17, 2002, the City loaned $660,000 to HAND to acquire and rehabilitate eleven units at 11 S. Delaware Street for affordable housing. The loan bears an interest rate of 3%. Principal and interest are due in 2032. However, HAND has an option of renewing the loan agreement for another thirty years.

El Camino Family Housing

In December 2002, El Camino Family Housing, L.P., r eceived a loan of $3,386,000 from the former Redevelopment Agency to develop the Santa Inez Apartments at an interest rate of 3% and for a period of 40 years. Annual payments of principal and interest in the amount of $140,688 ar e based on the “available cash flow” from the borrower’s preceding fiscal year. On January 19, 2018, the project was refinanced in order to allow one of the general partners to purchase the property as Santa Inez Apartments, LP. Upon closin g, a portion of the accrued interest was paid to the City. The promissory note was amended to revise the principal amount to $4,000,000 (original principal plus remaining accrued interest). The other original terms remained the same for another 25 years.

DRAFT 11.30.2022 v2

67 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

86 Note 3 – Loans and Notes Receivable (Continued)

MP San Mateo Transit Associates

In November 2006, the City and the former Redevelopmen t Agency entered into a loan agreement with the Mid- Peninsula Housing Coalition. The agreement includes thre e promissory notes in the amounts of $1,230,000 (City funds), $1,200,000 (Agency funds), and $2,870,000 (Agency funds), which bear 3% interest. The payment of principal and interest is due on the maturity date or the sale or transfer of the property except for a sale or transfer to an affiliate nonprofit public benefit corporation or to a limited partnership in which an affiliate is the general partner. The maturity date shall occur fifty-five (55) years from the date of the receipt of the final certificate of occupancy. Beginning with borrower’s first fiscal year following the first year after receipt of the certific ate of occupancy, borrower shall make annual payments of principal and interest to the City only from “Available Cash Flow” which is defined from borrower’s preceding fiscal year. In October 2009, the City received Infill Infrastructure Grant funds from the State of California in the amount of $3,854,240, which was passed on to the Mid-Peninsula Housing Coalition in the form of a deferred zero interest loan which is due at maturity, which is 55 years from receipt of the final certificate of occupancy.

MP Delaware Pacific Associates L.P.

In April 2012, the City and the Successor Agency entered into a loan agreem ent with the Mid-Peninsula Delaware Pacific Associates, LP. The agreement includes two promissory notes in the amounts of $880,000 (HOME Grant funds) and $320,000 (Successor Agency Funds), which bear 3% interest. Beginning with borrower’s first fiscal year following the first year after receipt of the certificate of occupancy, borrower shall make annual payments of principal and interest to the City only from “Available Cash Flow”, which is defined from borrower’s preceding fiscal year. The payment of remaining principal and interest is due on the maturity date or the sale or transfer of th e property except for a sale or transfer to an affiliate nonprofit public benefit corporation or to a limited partnership in which an affiliate is the general partner. The maturity date shall occur fifty-five (55) years from the date of the receipt of the final certificate of occupancy.

MP Foster Square

In July 2014, the City entered into a loan agreement with Mid-Peninsula Foster Square Associates, LP. The agreement includes one promissory note in the amount of $420,000 (HOME Grant funds), which bears 3% interest. Beginning with borrower’s first fiscal year following the first year af ter receipt of the certificate of occupancy, borrower shall make annual payments of principal and interest to the City only from “Residua l Receipts”, which is defined from the project’s preceding fiscal year. The payment of remaining principal and interest is due on the maturity date or the sale or transfer of the property. The maturity date shall occur fi fty-five (55) years from the date of the receipt of the final certificate of occupancy.

Gateway Commons Assessment Loan

In February 2011, the City and the former Redevelopment Agency entered into a loan agreement with the Gateway Commons Owners Association to assist the owner with payi ng for a special assessment for needed repairs at the complex. This agreement provides eligible owners of the affordable units lo ans in the range of $10,000 to $30,000 as one-time lump sum special assessment to Gateway Commons. The original term of the loan is 15 years with an interest rate varying between 0% and 3%. The loan repayment are amortized, deferred, or a combination of both.

DRAFT 11.30.2022 v2

68 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

87 Note 3 – Loans and Notes Receivable (Continued)

Cal Home Loans

In June 2009, the City entered into a program agreement with the California Department of Housing and Community Development to receive $750,000 in grant funds from the CalHOME program for its Owner Occupancy Rehabilitation Program. These funds are used for home repair loans up to $60,000 for low and moderate income households at 3% interest, with payments deferred for 30 years. Loan repayments will go into a revolving loan fund to be used for future housing loans for owner occupied units.

HIP Housing Development - 1110 Cypress Avenue

In May 2016, the City entered into two loan agreements with HIP Housing Development Corporation in the amounts of $590,000 and $510,000 to be used for the acquisitio n of 1110 Cypress Avenue in the City of San Mateo, a 16-unit apartment complex, for the purpose of providing affordable housing to low and moderate income households.

Commencing on the first day of the month following the first anniversary of the notes, the borrower shall make annual payments of principal and interest to the City only from “Residual Receipts”, the amount by which gross revenue exceeds annual operating expenses from the project’s preceding fiscal year. The payment of remaining principal and interest is due on the maturity date or the sale or transfer of the property. The loans bear simple interest of 3% per annum, and mature fifty-five (55) years from the date of the notes.

Bay Meadows Affordable Housing

In December 2018, the City lent $2,000,000 to Bay Mea dows Affordable Associates, LP for the construction of 68 family rental units. The interest rate is 3%. Annual payments are due beginn ing with the first fiscal year after construction completion based on the City’s share of “Residual Receipts” which is defined from the project’s preceding fiscal year. The payment of remaining principal and interest is due in full 55 years after construction completion.

Child Care Facility Project Loans

On October 15, 2018, the City Council approved Resolution 2018-107, establishing the Interim Child Care Fund Guidelines and authorized staff to release a Notice of F unding Available (NOFA). The NOFA was intended to invite a wide breadth of proposals that result in increasing the numbe r of childcare spaces in the City of San Mateo with the earliest possible completion. The NOFA was released on January 7, 2019 with a deadline date of February 21, 2019.

The City held an informational meeting for potential app licants on January 21, 2019 to review the NOFA document and requirements and respond to questions from attendees. As this was the first time in providing this NOFA, the loan documents were developed after the submittal of applications, as it was entirely unknown as to what types of projects would apply for funds and the potential structure of the f unding. Each project offered di ffering levels of available leveraged funding, from zero to over 50% of the total development costs.

MP Downtown San Mateo Associates, L.P.

In December 2021, the City entered into three loan agreements with MP Downtown San Mateo Associates, L.P., to be used for the development of Kiku Crossing, a new 225 unit affordable housing project. Th e agreements include three promissory notes in the amount of $650,000 (HOME Grant funds), $2,000,000 (Commercial Linkage Fee funds), and $2,850,000 (Low Mod Income Housing Asset Funds), which b ear 3% interest. Beginning with borrower’s first fiscal year following the first year after receipt of the certificat e of occupancy, borrower shall make annual payments of principal and interest to the City only from “Residual R eceipts”, which is defined from the project’s preceding fiscal year. The payment of remaining principal and interest is due on the maturity date or the sale or transfer of the property.

The maturity date shall occur fifty-seven (57) years from the date of recordation of the leasehold deed of trust.

DRAFT 11.30.2022 v2

69 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

88 Note 4 – Lease Receivable

The portion of the City’s property is leased to others. Su ch property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 2 to 14 years. The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2022, the City recognized $726,708 in lease revenue and $118,349 in interest revenue.

A summary of changes in lease receivable for the fiscal year ended June 30, 2022 is as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Leases receivable 4,121,012$ -$ (433,649)$ 3,687,363$ 722,867$ 2,964,496$ Total 4,121,012$ -$ (433,649)$ 3,687,363$ 722,867$ 2,964,496$ Classification

As of June 30, 2022, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2023 722,867 $ 100,893 $ 823,760 $
2024 791,688 78,285 869,973
2025 618,445 54,740 673,185
2026 270,391 42,448 312,839
2027 131,171 36,643 167,814
2028-2032 737,989 121,469 859,458 2033-2035 414,812 14,821 429,633 Total 3,687,363$ 449,299 $ 4,136,662 $

As of June 30, 2022, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:

Year Ending Amortization
June 30, Schedule
2023 726,708$
2024 726,708
2025 556,826
2026 277,999
2027 142,129
2028-2032 664,800
2033-2035 299,134
Total 3,394,304$

DRAFT 11.30.2022 v2

70 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

89 Note 5 – Interfund Receivables, Payables, and Transfers

A. Due To / From Other Funds

Amounts due to and due from other funds at June 30, 2022, were as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund Community Development Block Grant Fund 283,858$ Overdrawn Cash General Fund 2% Hotel Tax Capital Projects Fund 1,588,077 Overdrawn Cash Total 1,871,935$

B. Transfers

Interfund transfers during the year ended June 30, 2022, consisted of the following:

Transfers In Transfers Out Amount Purpose
General Projects Capital Projects Fund General Fund 1,281,637$ Capital projects General Projects Capital Projects Fund Construction Services Special Revenue Fund 2,387,568 Capital projects General Projects Capital Projects Fund Community Development Block Grant Special Revenue Fund 1,028,098 Capital projects General Projects Capital Projects Fund Gas Tax Special Revenue Fund 18,165 Capital projects General Projects Capital Projects Fund Road M aintenance and Rehabilitation Fund 1,892,481 Capital projects General Projects Capital Projects Fund Solid Waste Special Revenue Fund 16,911 Capital projects General Projects Capital Projects Fund Parks and Recreation Special Revenue Fund 224,513 Capital projects General Projects Capital Projects Fund Traffic Impact Fee Special Revenue Fund 590,325 Capital projects General Projects Capital Projects Fund 2% Hotel Tax Capital Projects Fund 1,234,490 Capital projects General Projects Capital Projects Fund Vehicle and Equipment Replacement 828,987 Capital projects Sub total 9,503,175
General Fund Parking Special Revenue Fund 2,363,915 Capital projects Vehicle and Equipment Replacement Internal Service Fund General Fund 410,000 Capital projects General Obligation Bond Debt Service Fund General Fund 2,663,647 Debt service 2% Hotel Tax Capital Projects Fund General Fund 388,478 Debt service Total 5,826,040$

DRAFT 11.30.2022 v2

71 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

90 Note 6 – Capital Assets

A. Governmental Activities

The summary of changes in governmental activities capital assets for the year ended June 30, 2022, is as follows:

Balance Balance
July 1, 2021 Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated
Land 52,064,002$ -$ -$ - 52,064,002$ Construction in progress 57,727,270 31,832,507 (2,504,882) (10,303,265) 76,751,630 Total capital assets, not being depreciated 109,791,272 31,832,507 (2,504,882) (10,303,265) 128,815,632 Capital assets, being depreciated
Building and improvements 192,438,613 - - 334,045 192,772,658 Machinery and equipment 33,585,188 628,602 (263,934) 55,370 34,005,226 Infrastructure 509,254,155 - - 9,913,850 519,168,005 Total capital assets, being depreciated 735,277,956 628,602 (263,934) 10,303,265 745,945,889 Accumulated depreciation:

Building and improvements (70,207,685) (5,294,175) - - (75,501,860) Machinery and equipment (24,338,889) (1,943,110) 249,277 - (26,032,722) Infrastructure (295,783,003) (12,841,745) - - (308,624,748) Total accumulated depreciation (390,329,577) (20,079,030) 249,277 - (410,159,330) Total capital assets, being depreciated, net 344,948,379 (19,450,428) (14,657) 10,303,265 335,786,559 Leased assets, being amortized
Machinery and equipment 2,169,194 - - - 2,169,194 Total leased asset, being amortized 2,169,194 - - - 2,169,194 Less: accumulated amortization
M achinery and equipment - (587,856) - - (587,856) Total accumulated amortization - (587,856) - - (587,856) Total leased asset, being amortized, net 2,169,194 (587,856) - - 1,581,338 Total capital assets, net 456,908,845$ 11,794,223$ (2,519,539)$ -$ 466,183,529$

Depreciation and amortization expense we re charged to the functions/programs of the governmental activities as follows:

General government 884,418$
Community development 266,049
Public safety 2,772,103
Public works 12,328,939
Parks and recreation 1,440,183
Library 1,700,712
Internal service funds 1,274,482
Total depreciation/amortization expenses 20,666,886$

DRAFT 11.30.2022 v2

72 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

91 Note 6 – Capital Assets (Continued)

B. Business-Type Activities

The summary of changes in business-type activities capital assets for the year ended June 30, 2022, is as follows:

Balance Balance
July 1, 2021 Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated
Land 4,052,298$ -$ -$ -$ 4,052,298$ Construction in progress 231,393,930 154,512,589 (640,254) (7,144,093) 378,122,172 Total capital assets, not being depreciated 235,446,228 154,512,589 (640,254) (7,144,093) 382,174,470 Capital assets, being depreciated
Sewer treatment plant
and transmission lines 272,061,661 - - 7,144,093 279,205,754 Machinery and equipment 2,245,045 23,584 (226,639) - 2,041,990 Total capital assets, being depreciated 274,306,706 23,584 (226,639) 7,144,093 281,247,744 Accumulated depreciation:

Sewer treatment plant
and transmission lines (104,866,864) (5,468,767) - - (110,335,631) Machinery and equipment (1,198,866) (127,524) 226,639 - (1,099,751) Total accumulated depreciation (106,065,730) (5,596,291) 226,639 - (111,435,382) Total capital assets, being depreciated, net 168,240,976 (5,572,707) - 7,144,093 169,812,362 Total capital assets, net 403,687,204$ 148,939,882$ (640,254)$ -$ 551,986,832$

Depreciation expense was charged to the Sewer Fund in the amount of $5,596,291.

DRAFT 11.30.2022 v2

73 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

92 Note 7 – Long-Term Liabilities

A. Summary

Annual Original
Final Interest Principal Issue Outstanding at
Maturity Rate Installments Amounts June 30, 2022
Governmental Activities
Direct Borrowing:

CEC Streetlight Loan 2028 1.00% $90,950 - $130,600 3,000,000 $ 2,013,305 $ PG&E - Energy Efficiency Retrofit Loans 2024 0.00% $340,322 3,356,274 2,013,305 Leases Payable 2024 3.00% $442,058 - $611,348 2,169,194 1,628,519 Advance Payable 2024 3.00% $442,058 - $611,348 45,765,000 43,845,000 Public Borrowing:

General Obligation Bonds, Series 2013
(Library Improvement Project) 2031 3.00% - 4.00% $1,395,000 - $2,070,000 27,295,000 16,140,000 Lease Revenue Bonds, Series 2007A
(Public Safety Project) 2039 Variable rate $415,000 - $1,195,000 17,240,000 13,615,000 Revenue Refunding Bonds, Series 2018A
(Golf Course Project) 2030 2.25% - 5.00% $450,000 - $665,000 6,050,000 4,695,000 Total Governmental Activities 104,875,468$ 83,950,129 $ Business-Type Activi ties
Sewer Revenue Bonds, Series 2011 2042 4.15% - 5.25% $665,000 - $1,340,000 31,990,000 $ - $ Sewer Revenue Bonds, Series 2014 2045 3.00% - 5.00% $670,000 - $2,665,000 32,255,000 28,090,000 Wastewater Revenue Bonds, Series 2019 2050 4.00% - 5.00% $2,520,000 - $16,020,000 236,180,000 236,180,000 Wastewater Revenue Notes, Series 2021B 2025 5.00% $271,565,000 271,565,000 271,565,000 Wastewater Revenue Refunding Bonds, Series 2021A 2042 2.00% - 5.00% $565,000 - $935,000 14,265,000 14,265,000 Total Business-Type Activities 586,255,000$ 550,100,000 $ Successor Agency
Tax Allocation Refunding Bonds, Series 2015A 2033 4.00% - 5.00% $530,000 - $4,150,000 31,210,000 $ 31,210,000 $ Tax Allocation Refunding Bonds, Series 2015B 2023 3.60% - 3.90% $695,000 - $1,185,000 7,385,000 $ 695,000 $ Tax Allocation Refunding Bonds, Series 2017A 2026 2.00% - 5.00% $2,425,000 - $3,100,000 21,440,000 11,530,000 Total Successor Agency 28,825,000$ 12,225,000 $

DRAFT 11.30.2022 v2

74 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

93 Note 7 – Long-Term Liabilities (Continued)

B. Governmental Activities

A summary of changes in the long-term liabilities of the governmental activities for the year ended June 30, 2022, is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2021 Issued Retired June 30, 2022 One Year Than One Yea r Gove rnme ntal Acti vi ti e s:

Bonds payable:

General Obligation Refunding Bonds, Series 2013 17,605,000$ - $ (1,465,000)$ 16,140,000 $ 1,520,000 $ 14,620,000 $ plus: unamortized bond premium 1,427,077 - (157,109) 1,269,968 - 1,269,968 Lease Revenue Bonds, Series 2007A 14,060,000 - (445,000) 13,615,000 480,000 13,135,000 Revenue Refunding Bonds, Series 2018A 5,170,000 - (475,000) 4,695,000 495,000 4,200,000 plus: unamortized bond premium 380,616 - (47,087) 333,529 - 333,529 Total bonds payable 38,642,693 - (2,589,196) 36,053,497 2,495,000 33,558,497 Direct borrowings:

Advance payable to other government
Advance payable to other government 44,990,000 - (1,145,000) 43,845,000 1,185,000 42,660,000 plus: unamortized advance premium 7,778,290 - (378,495) 7,399,795 - 7,399,795 Total advance payable to other government 52,768,290 - (1,523,495) 51,244,795 1,185,000 50,059,795 Loans payable:

CEC Streetlight Loan 2,253,867 - (240,562) 2,013,305 242,973 1,770,332 PG&E - Energy Efficiency Retrofit Loans 3,246,752 - (380,487) 2,866,265 351,219 2,515,046 Total loans payable 5,500,619 - (621,049) 4,879,570 594,192 4,285,378 Leases payable:

Leases payable 2,169,194 - (540,675) 1,628,519 575,113 1,053,406 Leases payable 2,169,194 - (540,675) 1,628,519 575,113 1,053,406 Total 99,080,796$ - $ (5,274,415)$ 93,806,381 $ 4,849,305 $ 88,957,076 $ Classification

General Obligation Refunding Bonds, Series 2013

On March 21, 2013, the City of San Mateo issued $ 27,295,000 principal amount General Obligation Refunding Bonds (Library Improvement Project), Series 2013 (2013 Refunding Bonds). The proceeds of the 2013 Refunding Bonds were used to refund the 2000 and 2004A Ge neral Obligation Bonds. Th e 2000 and 2004A General Obligation Bonds were used to finance the construction, acquisition and improvement of a new main library and the improvement of the City’s branch libraries. The General Obligation Refunding Bonds mature annually each August 1 through 2030, with installments ranging from $1,395,000 to $2,070,000. The interest on the Bonds is payable semi-annually on each February 1 and August 1, with coupons ranging from 3.0% to 4.0%.

The 2013 Refunding Bonds are secured by voter-approved, ad valorem property taxes. Annual principal and interest payments on the bonds are expected to require 100% percent of net revenues. Total principal and interest remaining to be paid on the 2013 Refunding Bonds is $18,656,875. For the current year, principal and interest paid on the 2013 Refunding Bonds was $2,045,950 and ad valorem property tax net revenues were $2,286,880.

DRAFT 11.30.2022 v2

75 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

94 Note 7 – Long-Term Liabilities (Continued)

B. Governmental Activities (Continued)

General Obligation Refunding Bonds, Series 2013 (Continued)

The annual debt service requirements on the 2013 General Obligation Refunding Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 1,520,000$ 521,250 $ 2,041,250 $
2024 1,590,000 459,050 2,049,050
2025 1,660,000 402,350 2,062,350
2026 1,720,000 351,650 2,071,650
2027 1,775,000 290,350 2,065,350
2028-2031 7,875,000 492,225 8,367,225
Total 16,140,000$ 2,516,875 $ 18,656,875 $

Lease Revenue Bonds, Series 2007A

On April 19, 2007, the City of San Mateo Joint Powers Financing Authority issued $17,400,000 principal amount Variable Rate Demand Lease Revenue Bonds (Public Safety Project), Series 2007A (2007A Variable Rate Bonds).

The proceeds of the 2007A Variable Rate Bonds contribut ed to the construction of a new police administration facility with a total project cost of $58,500,000. Other sources of funding for this project included transient occupancy tax (hotel tax), redevelopment agency funds, sale of the existing police facility site, and General Fund contributions. The 2007A Variable Rate Bonds mature annually each April 1 through 2039 with installments ranging from $415,000 to $1,195,000. The interest on the Bonds is payable monthly from the lease revenue to the Authority from the City. The interest rate on the Bonds is based on the weekly variable rate set by the remarketing agent, which can be no greater than 12% per annum. Week ly rates during the fiscal year varied from 0.07% to

5.85%, for an average weekly interest rate for the fiscal year of 1.03%. In addition, the letter of credit is with Wells Fargo and has an annual fee of 0.45%. The City also pa ys letter of credit (LOC) bank fees and remarketing agent fees on a quarterly basis. The remarketing agent is Stifel, Nicolaus & Co. and the annual remarketing fee has been

0.09% since 2007.

The City has elected to use the 2% tr ansient occupancy tax (hotel tax) authorized by Measure C, backed by a General Fund lease, to pay the annual principal and interest payments on the bonds. For the current year, principal, interest and other debt expenses pa id were $566,881, while 2% transien t occupancy tax revenues (TOT) were $218,851, resulting in a net loss of $348,029, not including transfers out to the CIP Fund. . Prior to COVID-19, the fund typically generated annual debt se rvice coverage of 2:1, and the accumu lated surplus of hotel tax revenues not needed for debt service serve as a built-in hedge against interest rate volatility. While the variable interest rate has reduced to historic lows as a result of the pandemic, TOT revenues have followed suit. Business travel is the primary component of the City’s TOT base, and is expected to be one of the last economic sectors to recover, if at all, from the pandemic. As such, the General Fund is expected to backfill the 2% TOT Fund for the long term, while both the interest rate and TOT revenues recover from the immediate and severe financial impact of the pandemic.

DRAFT 11.30.2022 v2

76 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

95 Note 7 – Long-Term Liabilities (Continued)

B. Governmental Activities (Continued)

Lease Revenue Bonds, Series 2007A (Continued)

The annual principal requirements on these bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 480,000$ - $ 480,000$
2024 510,000 - 510,000
2025 545,000 - 545,000
2026 580,000 - 580,000
2027 615,000 - 615,000
2028-2032 3,690,000 - 3,690,000 2033-2037 4,865,000 - 4,865,000 2038-2039 2,330,000 - 2,330,000 Total 13,615,000$ - $ 13,615,000$

Revenue Refunding Bonds, Series 2018A

On May 1, 2018, the City of San Mateo Joint Powers Financing Authority issued $6,050,000 in Revenue Refunding Bonds Series 2018A (2018A Revenue Bonds) to refinance the City of San Mateo Joint Powers Financing Authority Revenue Bonds, Refunding Series 2007B, wh ich were issued to refinance the City of San Mateo Joint Powers Financing Authority Revenue Bonds, Series 1999 (issued to finance the construction and renovation of an 18-hole municipal golf course and appurtenant facilities). The refunding resulted in $516,000 gross debt service (principal and interest) savings over 20 years, and an economic gain of $420,000. The refunding resulted in an accounting deferred loss on refunding of $163,957. The 2018A Revenue Bonds mature annually each August 1 beginning in 2019 through 2030, with installments ranging from $450,0 00 to $665,000. The interest on the Bonds is payable semi-annually on each February 1 and August 1, and coupons range from 2.25% to 5% annually. The 2018A Revenue Bonds are payable solely from golf course facility lease revenue to the Authority. The 2018A Revenue Bonds are subject to early redemption provisions.

Prior to fiscal year 2018-19, the City funded the lease paym ents to the Authority from golf charges for services from the enterprise Golf Fund. Beginning fiscal year 2018-19, in recognition of th e annual subsidy of golf operations from the City’s General Fund, the City moved its enterprise Golf Fund to the General Fund as a sub- fund. As such, lease payments to the Authority are f unded by the City’s General Fund since 2018-19. The total principal and interest remaining to be paid on the Bonds is $5,355,488. Principal and interest paid for the current year and golf course facility lease gross revenues were $670,475 and $3,537,203, respectively.

The annual debt service requirements on these bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 495,000$ 171,225 $ 666,225 $
2024 520,000 145,850 665,850
2025 550,000 119,100 669,100
2026 575,000 90,975 665,975
2027 605,000 61,475 666,475
2028-2030 1,950,000 71,863 2,021,863
Total 4,695,000$ 660,488 $ 5,355,488 $

DRAFT 11.30.2022 v2

77 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

96 Note 7 – Long-Term Liabilities (Continued)

B. Governmental Activities (Continued)

Advance Payable to Other Government

On February 27, 2020, the San Mateo-Foster City Joint Powers Financing Authority the 2020 Series A and B Lease Revenue Bonds utilizing a Lease-leaseback agreement between the San Mateo-Foster City Joint Powers Financing Authority and City of San Mateo. The lease agreement required the San Mateo-Foster City Joint Powers Financing Authority to pay upfront for the right to use of the buildings and leasehold improveme nts, owned by the City of San Mateo, over a period of time corresponding to the San Mateo-Foster City Joint Powers Financing Authority’s debt service requirement. The leaseback agreement required the City of San Mateo to make rental payments in amounts corresponding to the San Mateo-Foster City Joint Powers Financing Authority’s debt services requirements and related costs. Pe r the implementation of GASB 87 Leases, the components of lease-leaseback agreements are to be netted in the financial statemen ts, therefore the Authority will only record an advance receivable from other government for the amount to be paid back by the City of San Mateo for the upfront lease payment which reflects the present value of remaining future lease payments due to the San Mateo-Foster City Joint Powers Financing Authority. As of June 30, 2022, the City’s advance payable to other government balance was $43,845,000 with a remaining premium on advance bala nce of $7,399,795. Total principal and interest remaining to be paid on the advance from other government is $71,492,249.

The annual debt service requirements on the advance payable to other government are as follows:

Year Ending
June 30, Principal Interest Total
2023 1,185,000$ 1,833,429$ 3,018,429$
2024 1,230,000 1,784,904 3,014,904
2025 1,285,000 1,734,124 3,019,124
2026 1,340,000 1,680,638 3,020,638
2027 1,395,000 1,624,313 3,019,313
2028-2032 6,965,000 7,343,391 14,308,391
2033-2037 7,400,000 5,755,250 13,155,250
2038-2042 9,255,000 3,897,600 13,152,600
2043-2047 11,260,000 1,892,400 13,152,400
2048-2049 2,530,000 101,200 2,631,200
Total 43,845,000$ 27,647,249$ 71,492,249$

CEC Streetlight Loan

On January 14, 2015, the City entered into a loan agreement with the State of California Energy Conservation and Development Commission in the amount of $3,000,000 fo r the City-wide LED and High Voltage Conversion project. Loan funds are to be disbursed to the City on a reimbursement basis based on invoices submitted by the City for actual expenditures incurred for the project.

Semiannual payments due to the Energy Commission under this agreement are expected to be made from savings in energy costs or other available funds. The Loan accru es interest at a rate of 1.00% per annum on the unpaid principal computed from the date of each disbursement to the City.

DRAFT 11.30.2022 v2

78 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

97 Note 7 – Long-Term Liabilities (Continued)

B. Governmental Activities (Continued)

CEC Streetlight Loan (Continued)

The annual debt service requirements on the loan are as follows:

Year Ending
June 30, Principal Interest Total
2023 242,973$ 19,529 $ 262,502 $
2024 245,364 17,138 262,502
2025 247,869 14,633 262,502
2026 250,354 12,148 262,502
2027 252,863 9,639 262,502
2028-2030 773,882 13,622 787,504
Total 2,013,305$ 86,709 $ 2,100,014 $

PG&E – Energy Efficiency Retrofit Loans

On February 24, 2020, the City modified the loan agreement with Pacific Gas and Electric Company in the amount of $3,356,274 for the Sustainable Solutions Turnkey project. Loan funds are to be disbursed to the City on a reimbursement basis based on invoices submitted by the City for actual expenditures incurred for the project.

Monthly payments due under this agreement are expected to be made from savings in energy costs or other available funds. The loan does not accrue interest.

The annual debt service requirements on the loan are as follows:

Year Ending
June 30, Principal Interest Total
2023 351,219$ - $ 351,219$
2024 351,219 - 351,219
2025 351,219 - 351,219
2026 351,219 - 351,219
2027 351,219 - 351,219
2028-2031 1,110,170 - 1,110,170 Total 2,866,265$ - $ 2,866,265$

Lease Payable

The City has entered into leases for building space and equipment use. The terms of the agreements range from 2 to 3 years. The calculated interest rates used was 3.00%.

Principal and interest payments to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2023 575,113$ 41,041 $ 616,154 $
2024 611,348 23,293 634,641
2025 442,058 5,449 447,507
Total 1,628,519$ 69,783 $ 1,698,302 $

DRAFT 11.30.2022 v2

79 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

98 Note 7 – Long-Term Liabilities (Continued)

C. Business-Type Activities

A summary of changes in the long-term liabilities of the business-type activities for the year ended June 30, 2022, is as follows:

Balance Debt Deb t Balance Due within Due in More
July 1, 2021 Issue d Retired June 30, 2022 One Year Than One Yea r Business-Type Activities:

Public borrowings:

Bonds payable:

Sewer Revenue Bonds, Series 2011 19,700,000 $ -$ (19,700,000)$ -$ -$ -$ plus: unamortized bond premium 634,007 - (634,007) - - - Sewer Revenue Bonds, Series 2014 29,210,000 - (1,120,000) 28,090,000 1,175,000 26,915,000 plus: unamortized bond premium 1,740,814 - (75,688) 1,665,126 - 1,665,126 Wastewater Revenue Bonds, Series 2019 236,180,000 - - 236,180,000 - 236,180,000 plus: unamortized bond premium 43,831,420 - (1,618,396) 42,213,024 - 42,213,024 Wastewater Revenue Notes, Series 2021B - 271,565,000 - 271,565,000 - 271,565,000 plus: unamortized bond premium - 50,540,962 (12,635,242) 37,905,720 - 37,905,720 Wastewater Revenue Refunding Bonds, Series 2021A - 14,265,000 - 14,265,000 565,000 13,700,000 plus: unamortized bond premium - 3,670,571 (174,790) 3,495,781 - 3,495,781 Total bonds payable 331,296,241 340,041,533 (35,958,123) 635,379,651 1,740,000 633,639,651 Total 331,296,241$ 340,041,533 $ (35,958,123) $ 635,379,651 $ 1,740,000 $ 633,639,651 $ Classification

Sewer Revenue Bonds, Series 2011A

On May 11, 2011, the City of San Mateo issued Se wer Revenue Bonds, Series 2011A (Series 2011A Bonds), totaling $31,990,000. The purpose was to refund the C ity’s outstanding (a) Sewe r Revenue Refunding Bonds, Series 1996A, (b) Sewer Revenue Bonds, Series 1998A, and (c) Sewer Revenue Refunding Bonds, Series 1998B, finance various improvements to the City’s municipal sewer enterprise, and make a deposit into reserve fund for the Series 2011A Bonds and the 2003 Bonds.

The Series 2011A Bonds mature annually each August 1 th rough 2041, with installments ranging from $665,000 to $1,340,000. The interest on the Series 2011A Bonds is payable semi-annually on Febr uary 1 and August 1 of each year, and the interest rates range from 4.15% to 5.25%. The Series 2011A Bonds are payable solely from net revenues received by the City from the operation of the sewer enterprise and certain funds and accounts held under the Indenture. The Series 2011A Sewer Revenue Bonds we re refunded with the issuance of the 2021 Series A Wastewater Revenue Refunding Bonds during fiscal year ended June 30, 2022.

Sewer Revenue Bonds, Series 2014A

On July 2, 2014, the City of San Mateo issued Sewer Revenue Bonds, Series 2014A (Series 2014A Bonds), totaling $32,255,000. The purpose was to refund the City’s outstanding Sewer Revenue Bonds, Series 2003, and finance various improvements to the City’s municipal sewer enterprise.

The Series 2014A Bonds mature annually each August 1 through 2044, with installments ranging from $670,000 to $2,665,000. The interest on the Series 2014A Bonds is payable semi-annually on Fe bruary 1 and August 1 of each year, with coupons ranging from 3.00% to 5.00%. The Series 2014A Bonds are payable solely from net revenues received by the City from the operation of the sewer enterprise and certain funds and accounts held under the Indenture. Total principal and interest remaining to be paid on the Bonds is $41,847,190.

DRAFT 11.30.2022 v2

80 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

99 Note 7 – Long-Term Liabilities (Continued)

C. Business-Type Activities (Continued)

Sewer Revenue Bonds, Series 2014A (Continued)

The annual debt service requirements on the Series 2014A Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 1,175,000$ 1,116,440$ 2,291,440$
2024 1,235,000 1,056,190 2,291,190
2025 1,300,000 992,815 2,292,815
2026 1,365,000 926,190 2,291,190
2027 1,435,000 856,190 2,291,190
2028-2032 5,160,000 3,499,653 8,659,653
2033-2037 3,965,000 2,822,287 6,787,287
2038-2042 4,770,000 2,018,125 6,788,125
2043-2045 7,685,000 469,300 8,154,300
Total 28,090,000$ 13,757,190$ 41,847,190$

Wastewater Revenue Bonds, Series 2019

In June of 2019, the City of San Mateo and the Estero Municipal Improvement District/City of Foster City jointly issued the 2019 Series Wastewater Revenue Bonds in the amount of $270,000,000 (2019 Wastewater Bonds) through a joint powers financing authority, San Mateo-Foster City Public Financing Authority (Authority). Of the total issuance amount, the City is responsible for $236,180,000. Interest payments are payable semi-annually on February 1 and August 1, commencing February 1, 2020. The bonds mature through August 1, 2049, and bear interest at the rate of 4.00% - 5.00%. The issuance resulted in a bond premium of $53,780,407, of which the City’s share was $47,201,120.

Interest payments and revenue bond retirements are serviced by the revenues generated by the City of San Mateo Sewer Enterprise Fund and the Foster City/Estero Municipal Improvement District Wastewater Enterprise Fund pursuant to a reimbursement agreement. The City’s total principal and interest remaining to be paid on the bonds is $435,045,975.

The City’s annual debt service requirements on the 2019 Wastewater Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 - $ 10,947,250$ 10,947,250 $ 2024 - 10,947,250 10,947,250 2025 - 10,947,250 10,947,250 2026 2,520,000 10,884,250 13,404,250
2027 3,650,000 10,730,000 14,380,000
2028-2032 28,990,000 49,874,500 78,864,500
2033-2037 40,945,000 41,150,925 82,095,925
2038-2042 51,265,000 30,842,475 82,107,475
2043-2047 63,055,000 19,043,200 82,098,200
2048-2050 45,755,000 3,507,875 49,262,875
Total 236,180,000$ 198,874,975 $ 435,054,975 $

DRAFT 11.30.2022 v2

81 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

100
Note 7 – Long-Term Liabilities (Continued)

C. Business-Type Activities (Continued)

Wastewater Revenue Notes, Series 2021B

On July 1, 2021, the Authority issued the 2021 Series Wastewater Revenue Note in the amount of $62,760,000 and $271,565,000 respectively. The 2021B Notes were issued to costs of the Wastewater Treatment Plant (WWTP) capital improvements. Of the total issuance amount, the City is responsible for $271,565. Interest payments are payable semi- annually on February 1 and August 1, comm encing February 1, 2021. The bonds mature through August 1, 2025, and bear interest at the rate of 5. 00%. The issuance resulted in a bond premium of $62,249,468 , of which the City’s share was $50,540,962.

The annual debt service requirements for the Series 2021B Notes outstanding at June 30, 2022 were as follows:

Year Ending
June 30, Principal Interest Total
2023 -$ 13,578,250$ 13,578,250$
2024 - 13,578,250 13,578,250 2025 - 13,578,250 13,578,250 2026 271,565,000 6,789,125 278,354,125
Total 271,565,000$ 47,523,875$ 319,088,875$

Wastewater Revenue Refunding Bonds, Series 2021A

On July 1, 2021, the Authority issued the 2021 Series A Wastewater Revenue Refunding Bonds in the amount of $14,265,000. The Bonds were issued to refund the City of San Mateo’s 2011 Series A Bonds, which provided an arbitrage yield of 0.465% and $7.4 million in PV de bt service savings. The aggregate difference between the remaining debt service requirements of the 2011A Bonds and the Revenue Refunding Bonds at the time of refunding was $634,014.

The Series 2021A Bonds mature annually each August 1 th rough 2041, with installments ranging from $665,000 to $1,340,000. Interest payments are payable semi- annually on February 1 and August 1, commencing November 1, 2020. The bonds mature through August 1, 2042, and bear interest at the rate of 1.55-5.00%. The issuance resulted in a bond premium of $3,670,571. The Series 2021A Bonds are payable solely from net revenues received by the City from the operation of the sewer enterprise and certain funds and accounts held under the Indenture.

Total principal and interest remaining to be paid on the Bonds is $20,771,875.

The annual debt service requirements for the Series 2021A Bonds outstanding at June 30, 2022 were as follows:

Year Ending
June 30, Principal Interest Total
2023 565,000$ 630,700$ 1,195,700$
2024 630,000 609,300 1,239,300
2025 660,000 577,050 1,237,050
2026 690,000 543,300 1,233,300
2027 730,000 507,800 1,237,800
2028-2032 3,255,000 2,009,875 5,264,875
2033-2037 3,430,000 1,226,025 4,656,025
2038-2042 4,305,000 402,825 4,707,825
Total 14,265,000$ 6,506,875$ 20,771,875$

DRAFT 11.30.2022 v2

82 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

101
Note 7 – Long-Term Liabilities (Continued)

C. Business-Type Activities (Continued)

Treatment of Revenue Bonds in Aggregate

The City has covenanted in the indenture, to the maximum extent permitted by law, to set rates and charges for the service and facilities of the Sewer Enterprise sufficient to provide net revenues each fiscal year equal to 120% of the aggregate annual amount of principal and interest due on all parity obligations for such fiscal year and sufficient to provide net revenues each fiscal year equal to at least 100% of the aggregate amount of principal and interest due on all parity obligations and subordinate obligations for such fiscal year.

There are four revenue bonds secured by revenues received from the operation of the Sewer Enterprise: Series 2014A Sewer bonds, 2019 Wastewater bonds, 2021 Wast ewater notes, and 2021 Wastewater bonds. Annual principal and interest payments on the three bonds are expected to require 20% of net revenues. For the current year, principal and interest paid on the Series 2014A Sewer bonds was $2,293,440, on the 2019 Wastewater bonds was $10,947,250, on the 2021 Wastewater notes was $7,920,646, and on the 2021 Wastewater bonds was $371,204. Sewer services net revenues were $41,658,337.

D. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of San Mateo

A summary of changes in the long-term liabilities of the fi duciary fund financial statements for the year ended June 30, 2022, is as follows:

Balance Debt Deb t Balance Due within Due in More
July 1, 2021 Issue d Retired June 30, 2022 One Year Than One Year Fiduciary Activities:

Public borrowings:

Bonds payable:

Tax Allocation Refunding Bonds, Series 2015A 31,210,000$ - $ - $ 31,210,000$ 530,000 $ 30,680,000 $ plus: unamortized bond premium 2,005,747 - (182,340) 1,823,407 - 1,823,407 Tax Allocation Refunding Bonds, Series 2015B 1,880,000 - (1,185,000) 695,000 695,000 - Tax Allocation Refunding Bonds, Series 2017A 14,075,000 - (2,545,000) 11,530,000 2,675,000 8,855,000 plus: unamortized bond premium 1,704,698 - (417,478) 1,287,220 - 1,287,220 Total bonds payable 50,875,445 - (4,329,818) 46,545,627 3,900,000 42,645,627 Total 50,875,445$ -$ (4,329,818)$ 46,545,627$ 3,900,000$ 42,645,627$ Classification

Tax Allocation Refunding Bonds, Series 2015A

On August 5, 2015, the Successor Agency of the Redeve lopment Agency of the City of San Mateo issued $31,210,000 principal amount Tax Allocation Refunding Bonds, Series 2015A (2015A Refunding Bonds). The proceeds of the 2015A Refunding Bonds were used to advance refund the Merged Area Tax Allocation Bonds, Series 2005A Bonds. The 2015A Refunding Bonds are tax-exempt. The 2015A Refunding Bonds mature annually each August 1 through 2032, with inst allments ranging from $530,000 to $4,150,000. The interest on the 2015A Refunding Bonds is payable semi-annually on each Febr uary 1 and August 1, with coupon rates ranging from

4.00% to 5.00%. The 2015A Refunding Bonds are subject to early redemption provisions. Total principal and interest remaining to be paid on the Bonds is $41,260,375.

DRAFT 11.30.2022 v2

83 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

102
Note 7 – Long-Term Liabilities (Continued)

D. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of San Mateo (Continued)

Tax Allocation Refunding Bonds, Series 2015A (Continued)

On August 5, 2015, the Successor Agency of the Redeve lopment Agency of the City of San Mateo issued $31,210,000 principal amount Tax Allocation Refunding Bonds, Series 2015A (2015A Refunding Bonds). The proceeds of the 2015A Refunding Bonds were used to advance refund the Merged Area Tax Allocation Bonds, Series 2005A Bonds. The 2015A Refunding Bonds are tax-exempt. The 2015A Refunding Bonds mature annually each August 1 through 2032, with inst allments ranging from $530,000 to $4,150,000. The interest on the 2015A Refunding Bonds is payable semi-annually on each Febr uary 1 and August 1, with coupon rates ranging from

4.00% to 5.00%. The 2015A Refunding Bonds are subject to early redemption provisions. Total principal and interest remaining to be paid on the Bonds is $41,260,375.

The annual debt service requirements on the 2015A Refunding Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 530,000$ 1,463,450 $ 1,993,450 $
2024 1,265,000 1,427,550 2,692,550
2025 1,325,000 1,375,750 2,700,750
2026 1,375,000 1,321,750 2,696,750
2027 3,840,000 1,198,250 5,038,250
2028-2032 18,725,000 3,180,625 21,905,625
2033 4,150,000 83,000 4,233,000
Total 31,210,000$ 10,050,375 $ 41,260,375 $

Tax Allocation Refunding Bonds, Series 2015B

On August 5, 2015, the Successor Agency of the Redevel opment Agency of the City of San Mateo issued $7,385,000 principal amount Tax Allocation Refundin g Bonds, Series 2015B (2015B Refunding Bonds). The proceeds of the 2015B Refunding Bonds were used to a dvance refund the Merged Area Housing Set- Aside Tax Allocation Bonds, Series 2005A Bonds. The 2015B Refunding Bonds are federally taxable. The 2015B Refunding Bonds mature annually each August 1 through 2022, with installments ranging from $695,000 to $1,185,000. The interest on the 2015B Refunding Bonds is payable semi-annually on each Febr uary 1 and August 1, with coupon rates ranging from 3.60% to 3.90%. The 2015B Refunding Bonds are subject to early redemption provisions. Total principal and interest remaining to be paid on the Bonds is $708,553.

In connection with the issuance of the 2015A and B Ref unding Bonds, the City recorded a deferral on refunding of debt, which is reported as a deferred inflow of resources. At June 30, 2022, the total amount deferred was $42,377 which will be amortized over the remaining life of the Bonds. The economic gain on refunding for the 2015A and B Refunding Bonds was $2,831,116.

The annual debt service requirements on the 2015B Refunding Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 695,000$ 13,553 $ 708,553 $
Total 695,000$ 13,553 $ 708,553 $

DRAFT 11.30.2022 v2

84 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

103
Note 7 – Long-Term Liabilities (Continued)

D. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of San Mateo (Continued)

Tax Allocation Refunding Bonds, Series 2017A

On October 17, 2017, the Successor Agency of the Redevelopment Agency of the City of San Mateo issued $21,440,000 principal amount Tax Allocation Refunding Bonds, Series 2017A (2017A Refunding Bonds). The proceeds of the 2017A Refunding Bonds were used to advance refund the tax-exempt Merged Area Tax Allocation Refunding Bonds, Series 2007A. The 2017A Refunding Bonds are tax-exempt. The 2017A Refunding Bonds mature annually each August 1 through 2025, with installments ranging from $2, 425,000 to $3,100,000. The interest on the 2017A Refunding Bonds is payable semi -annually on each February 1 and August 1, with coupon rates of 5.00%. The 2017A Refunding Bonds are subject to early redemption provisions. Total principal and interest remaining to be paid on the Bonds is $12,718,250.

The annual debt service requirements on the 2017A Refunding Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 2,675,000$ 509,625 $ 3,184,625 $
2024 2,810,000 372,500 3,182,500
2025 2,945,000 228,625 3,173,625
2026 3,100,000 77,500 3,177,500
Total 11,530,000$ 1,188,250 $ 12,718,250 $

Pledged Revenues

Tax Allocation Bonds held by the Successor Agency of the Redevelopment Agency of the City of San Mateo are secured by property tax revenues. For the current year, pr incipal and interest paid on the Series 2015A, 2015B, and 2017A, Tax Allocation Bonds we re $1,474,050, $1,233,435, and $3,185,125, respectively and Redevelopment Agency Property Tax Trust Fund distributions were $5,994,710.

Note 8 – Special Assessment Debt with No City Commitment

The City issued special tax and assessment bonds on behalf of property owners, pursuant to the Improvement Bond Act of 1915 and the Mellow-Roos Community Facilities Act of 1982, to finance the acqui sition and construction of certain infrastructure improvements within the assessment districts and community facilities districts.

The City of San Mateo has authorized the formation of the Bay Meadows Community Facilities District No. 2008-1 (Bay Meadows CFD), acting through its eligible landowne r voters, and the issuance of bonds under the public improvement act (Mello-Roos Community Facilities Act of 1982) of the State of California to finance eligible public facilities necessary to serve developing commercial, industrial, residential and/or mixed use developments. The bonds are secured by annual special tax levies or liens placed on the property within the district.

DRAFT 11.30.2022 v2

85 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

104
Note 8 – Special Assessment Debt with No City Commitment (Continued)

The City of San Mateo is not liable for repayment and acts only as an agent for the property owners in collecting the special taxes or assessments, forwarding the collections to bondholders, and initiating fo reclosure proceedings when necessary. These bonds are payable solely from special taxes or assessments, specific reserves, and the proceeds from property foreclosures to be levied by the Bay Meadows CFD. The City is the collecting and paying agent for the debt, but has no direct or contingent liability for the payment of this debt. Accordingly, the special tax bonds are not reported as liabilities in the City’s basic financial statements.

Noncommittal debt amounts issued and outstanding at June 30, 2022 are as follows:

Outstanding
Original Balance
Amount June 30, 2022
CFD 2008-1, Series Special Tax Bonds Refunding Bonds Series 2022 72,345,000$ 72,345,000$

Note 9 – Compensated Absences

Employees accrue vacation, annual leave, earned time off, and holiday leave up to certain maximums, based on the employee’s bargaining unit. Employees may elect to be paid a portion of these leaves at various times according to the applicable Memorandum of Understanding. Sick leave may be accumulated without limit. Sick leave may be paid upon retirement up to 50% of accumulated balance up to 960 hours with the maximum payout not to exceed 480 hours.

A. Governmental Activities

A summary of changes in the compen sated absences balances for the governme ntal activities for the year ended June 30, 2022 is as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Compensated absences 9,082,612$ 5,747,119$ (6,725,932)$ 8,103,799$ 891,418$ 7,212,381$ Total 9,082,612$ 5,747,119$ (6,725,932)$ 8,103,799$ 891,418$ 7,212,381$ Classification

Compensated absences in the governmental activities generally liquidate to the General Fund.

B. Business-Type Activities

A summary of changes in the compen sated absences balances for the business- type activities for the year ended June 30, 2022 is as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Compensated absences 1,388,010$ 722,875 $ (1,038,626)$ 1,072,259 $ 117,948 $ 954,311 $ Total 1,388,010$ 722,875 $ (1,038,626)$ 1,072,259 $ 117,948 $ 954,311 $ Classification

Compensated absences in the business-type activities are obligations of the Sewer Fund.

DRAFT 11.30.2022 v2

86 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

105
Note 10 – Landfill Closure

The City is responsible for closing the East Third Avenue Waste Disposal and Landfill site in accordance with the California Code of Regulations under the jurisdiction of the California Integrated Waste Management Board. In fiscal year 1992, the City developed a Closure Plan that in management’s view will meet all regulatory requirements. As stated in the California Code of Regulations, Division 2 Title 27 Article 2 Section 21 180, “a) the landfill shall be maintained and monitored for a period of not less than thirty (30) years after the completion of closure of the entire solid waste landfill.” The landfill is at capacity and inactive, and final closure occurred in FY 2005-06.

As of June 30, 2022, the estimated amount of $1,559,695 has been recorded as Landfill Post-Closure Costs Payable in the Government-Wide Financial Statements.

Balance Balance Due within Due in More
Landfill closure and July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Yea r post-closure costs payable 1,498,265$ 161,315 $ (99,885) $ 1,559,695$ 103,980 $ 1,455,715$ Classification

Note 11 – Pension Plans

A. Summary

Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Pension contribution made after measurement date:

CalPERS Miscellaneous 8,036,643$ 1,917,088 9,953,731 $ CalPERS Safety 14,717,993 - 14,717,993 Total pension contribution made after measurement date 22,754,636 1,917,088 24,671,724 Difference between expected and actual experience
CalPERS Miscellaneous 51,516 12,289 63,805 CalPERS Safety 1,409,419 - 1,409,419 Total difference between expected and actual experience 1,460,935 12,289 1,473,224 Total deferred outflows of resources
CalPERS Miscellaneous 8,088,160 1,929,376 10,017,536 CalPERS Safety 16,127,412 - 16,127,412 Total deferred outflows of resources 24,215,572$ 1,929,376 $ 26,144,948 $ Net pension liability:

CalPERS Miscellaneous 41,709,692$ 9,949,575 $ 51,659,267 $ CalPERS Safety 125,512,845 - 125,512,845 Total net pension liability 167,222,537$ 9,949,575 $ 177,172,112 $ DRAFT 11.30.2022 v2

87 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

106
Note 11 – Pension Plans (Continued)

A. Summary (Continued)

Governmental Business-Type
Activities Activities Total
Deferred inflows of resources:

Actual earnings on pension plan investments in excess of projected earnings:

CalPERS Miscellaneous 18,949,844 4,520,361 23,470,205 CalPERS Safety 30,089,229 - 30,089,229 Total actual earnings on pension plan investments in excess of projected earnings 49,039,073 4,520,361 53,559,434 Total deferred inflows of resources
CalPERS Miscellaneous 18,949,844 4,520,361 23,470,205 CalPERS Safety 30,089,229 - 30,089,229 Total deferred inflows of resources 49,039,073$ 4,520,361 $ 53,559,434 $ Pension expenses:

CalPERS Miscellaneous 2,681,386$ 639,627 $ 3,321,013 $ CalPERS Safety 8,448,660 - 8,448,660 Total net pension expenses 11,130,046$ 639,627 $ 11,769,673 $

B. General Information about Pension

Plan Description

Substantially all City employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Miscellaneous or Safety Agent multiple-employer de fined benefit plan administered by 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 statutes within the Public Employee’s Retirement Law. 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. Copies of the CalP ERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.

Employees Covered

At June 30, 2021, the measurement date, the following employees were covered by the benefit terms for the Plan:

M iscellaneous Plan Safety Plan Total
Active employees 358 101 459
Transferred and terminated employees 408 196 604
Retired employees and beneficiaries 638 389 1027
Total 1404 686 2090

DRAFT 11.30.2022 v2

88 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

107
Note 11 – Pension Plans (Continued)

B. General Information about Pension (Continued)

Benefits Provided

CalPERS provide retirement and disability benefits, annual cost-of-living adjust ments, and death benefits to plan members and beneficiaries. Classic CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit f actor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:

Hire Date M iscellaneous Plan Safety Plan
Benefit formula 2.0% @ 55 3% @ 50
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 50
Monthly benefits, as a % of eligible compensation 2.0% 3.000% Required employee contribution rates for Classic members 8.00% 9.00% Required employer contribution rates 9.050% 19.480%
Final Annual Compensation 1 year 1 year

On January 1, 2013, the Public Employee Pension Reform Act (PEPRA) went into effect. This State law applies to employees hired on or after January 1, 2013 who ar e new to Public Employee Retirement Systems (PERS).

These employees are termed PEPRA members and employees that were enrolled in PERS (without significant separation) prior to January 1, 2013 are now referred to as classic members. PEPRA miscellaneous members will be enrolled in a 2% at 62 plan and PEPRA safety members will be enrolled in a 2.7% at 57 plan. PEPRA members will be required to pay half the normal cost of their plans.

Contributions

Section 20814(C) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees duri ng the year (normal cost), with additional amount to finance any unfunded accrued liability (UAL). The City is required to contribute the difference between the actuarially determined rate and th e contribution rate of employees. For the measurement period ended June 30, 2021 (the measurement date), the average active employee contribution rate is 8 percent of annual pay for the Miscellaneous Plan and 9 percent of annual pay for th e Safety Plan, and employer contribution rate is 28.63 percent of annual payroll for the Miscellaneous Plan and 104.06 percent of annual payroll for the Safety Plan. Of note, the pension liability for the service years of former City employees that transferred to the San Mateo Consolidated Fire Department remains with the City, t hus the UAL as a percentage of payroll is higher, as the UAL is relative to the remaining Safety Plan members (Police Department employees). As of June 30, 2021, in the opinion of City Administration, there were no additional outstanding matters that would have a significant effect on the financial position of the City.

DRAFT 11.30.2022 v2

89 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

108
Note 11 – Pension Plans (Continued)

B. General Information about Pension (Continued)

Contributions (Continued)

For the year ended June 30, 2022, the plan’s contributions made for the Plan was as follows:

Miscellaneous Plan Safety Plan
Contributions - employer 9,953,731 $ 14,717,993 $

Net Pension Liability

The City’s net pension liability is m easured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 us ing standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown as follows.

Actuarial Assumptions

The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Morta l i ty Ra te Ta bl e
Post Retirement Benefit Increase

7.00%
Derived using CalPERS’ Membership Data for all Funds. The mortality table used was developed based on CalPERS’ specific data.

The table includes 20 years of mortality improvements using Society of Actuaries Scale M P-2016.

Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter Entry Age Normal in accordance with the requirement of GASB

7.15%

2.50%
Varies by Entry Age and Service

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuation were based on the results of December 2017 actuarial experience st udy for the period 1997 to 2015. Further details of the Experiences Study can be found on the CalPERS website.

Discount Rate

In determining the long-term expected rate of return, CalPERS took into account, bot h short-term and long-term market return expectations as well as the expected pe nsion fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected com pound (geometric) returns were calculated over the short-term (first 10 years) and the l ong-term (11-60 years) using a building-block approach.

Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as th e one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate ca lculated above and rounded down to the nearest one quarter of one percent.

DRAFT 11.30.2022 v2

90 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

109
Note 11 – Pension Plans (Continued)

B. General Information about Pension (Continued)

Discount Rate (Continued)

The table below reflects long-term expected real rate of return by asset class. The ra te of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset Class
New S trategic
Allocation
Real Re turn Ye ars
1 - 10
1 Re al Return Years
11 +
2 Global equity 50.00% 4.80% 5.98%
Global fixed income 28.00% 1.00% 2.62%
Inflation sensitive assets 0.00% 0.77% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
1 An expected inflation of 2.00% was used for this period. 2 An expected inflation of 2.92% was used for this period.

The discount rate used to measure the total pension liability was 7.15% for the plan . To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.

Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% is applied to all plans in the Public Empl oyees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover T esting Report” that can be obtained from the CalPERS website under the GASB 68 Section.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the City’s net pension liability, calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
Miscellaneous Plan 88,844,213$ 51,659,267 $ 20,706,458 $ Safety Plan 182,970,131$ 125,512,845$ 78,222,978$ Plan's Aggregate Net Pension L iability/(Asset)

DRAFT 11.30.2022 v2

91 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

110
Note 11 – Pension Plans (Continued)

B. General Information about Pension (Continued)

Changes in the Net Pension Liability

The following table shows the changes in net pension liability recognized over the measurement period:

Total Pension
Liability
Plan Fiduciary Net
Position Net Pension Liability
Balance at June 30, 2020 (Valuation Date) 293,509,581 $ 208,767,343 $ 84,742,238 $ Changes in the year:

Service cost 5,417,134 - 5,417,134 Interes t on the total pens ion liabilities 20,553,253 - 20,553,253 Differences between expected and actual experience (812,628) - (812,628) Benefit payments, including refunds of members contributions (15,894,895) (15,894,895) - Contributions - em ployer - 8,968,085 (8,968,085) Contributions - em ployee - 2,454,476 (2,454,476) Net investm ent incom e - 47,026,715 (47,026,715) Adm inistrative ex penses - (208,546) 208,546 Net changes 9,262,864 42,345,835 (33,082,971) Balance at June 30, 2021 (Measurement Date) 302,772,445 $ 251,113,178 $ 51,659,267 $ Miscellaneous Plan

Total Pension
Liability
Plan Fiduciary Net
Position Net Pension Liability
Balance at June 30, 2020 (Valuation Date) 429,955,594 $ 266,774,612 $ 163,180,982 $ Changes in the year:

Service cost 4,521,737 - 4,521,737 Interes t on the total pens ion liabilities 30,250,946 - 30,250,946 Differences between expected and actual experience 2,818,839 - 2,818,839 Benefit payments, including refunds of members contributions (23,890,302) (23,890,302) - Contributions - em ployer - 13,566,455 (13,566,455) Contributions - em ployee - 1,789,979 (1,789,979) Net investm ent incom e - 60,169,718 (60,169,718) Adm inistrative ex penses - (266,493) 266,493 Net changes 13,701,220 51,369,357 (37,668,137) Balance at June 30, 2021 (Measurement Date) 443,656,814 $ 318,143,969 $ 125,512,845 $ Safety Plan

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2022, the City recognized pension expense in the amount of $3,321,013 and $8,448,660 for the miscellaneous and safety plans, respectively.

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service liv es of all members that are provided w ith benefits (active, inactive and retired) as of the beginning of the measurement period.

DRAFT 11.30.2022 v2

92 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

111
Note 11 – Pension Plans (Continued)

B. General Information about Pension (Continued)

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

The Expected Average Remaining Service Lifetime (“EAR SL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. For the Miscellaneous Plan, the EARSL for the Miscellaneous Plan for the 2020-21 measurement period is 2.7 years, which was obtained by dividing the total service years of 3,676 (the sum of remaining service lifetimes of the active employees) by 1,378 (the total number of participants: active, inactive, and retired). Fo r the Safety Plan, the EARSL for the Miscellaneous Plan for the 2020-21 measurement period is 2.0 years, which was obtained by dividing the total service years of 1,358 (the sum of remaining service life times of the active employees) by 688 (the total number of participants: active, inactive, and retired).

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

Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 9,953,731 $ - $
Difference between projected and actual
earning on pension plan investments - (23,470,205) Differences between expected and actual experience 63,805 - Total 10,017,536 $ (23,470,205)$
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 14,717,993$ -$
Difference between projected and actual
earning on pension plan investments - (30,089,229) Differences between expected and actual experience 1,409,419 - Total 16,127,412$ (30,089,229)$
Miscellaneous Plan
Safety Plan

Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 24,671,724 $ - $
Difference between projected and actual
earning on pension plan investments - (53,559,434) Differences between expected and actual experience 1,473,224 - Total 26,144,948 $ (53,559,434)$
Total
DRAFT 11.30.2022 v2

93 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

112
Note 11 – Pension Plans (Continued)

B. General Information about Pension (Continued)

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

For the General Information about Pension, for the Miscellaneous and Safety Plans, $9,953,731 and $14,717,993, respectively, was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability 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 in pension expense as follows:

Year Ended June 30, Miscellaneous Plan Safety Plan Total 2022 (5,681,780)$ (6,239,173) $ (11,920,953) $ 2023 (5,645,591) (6,955,951) (12,601,542) 2024 (5,623,617) (7,201,324) (12,824,941) 2025 (6,455,412) (8,283,362) (14,738,774) 2026 - - - Thereafter - - - (23,406,400)$ (28,679,810)$ (52,086,210)$ Deferred Outflows/(Inflows)
of Resources

Pension Plan Fiduciary Net Position

Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

C. Social Security

Total contributions to Social Security for all City employees during the year ende d June 30, 2022 amounted to $2,321,305 of which the City paid $2,321,305.

The Omnibus Budget Reconciliation Ac t of 1990 (OBRA) mandates that public sector employees who are not members of their employer’s existing retirement system as of January 1, 1992 be covered by either Social Security or an alternative plan.

The City’s part-time, seasonal and temporary employees are covered under an alternative savings plan, which requires these employees and the City to each contribute 3.75% of the employees’ pay for a total of 7.50%.

DRAFT 11.30.2022 v2

94 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

113
Note 12 – Other Postemployment Benefits

A. Summary

Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

OPEB contribution made after measurement date 1,790,683$ 265,919 $ 2,056,602 $ Total deferred outflows of resources 1,790,683$ 265,919 $ 2,056,602 $ Net OPE B L iability 6,541,578$ 971,430 $ 7,513,008 $ Deferred inflows of Resources:

Difference between expected and actual experience 1,906,979$ 283,190 $ 2,190,169 $ Net difference between projected and actual
earnings of OPEB Plan investments 1,066,494 158,376 1,224,870 Change in assumption 273,328 40,590 313,918 Total deferred inflows of resources 3,246,801$ 482,156 $ 3,728,957 $ O PEB Expe nse (Income ) (46,312)$ (6,877) $ (53,189) $

B. General Information about OPEB

Plan Description

The City administers a single-employer defined benef it post-employment healthcare plan. Merit employees who retire directly from the City under CalPERS at the minimu m age 50 with at least 5 years of CalPERS service (or disability) are eligible to receive $160 per month for medical insurance premiums paid to CalPERS. This same benefit may continue to a surviving spouse depending on the retirement plan election. As of June 30, 2021, there were 371 retirees receiving post-employment health care benefits from the City.

Employees Covered

As of the July 1, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms:

Active employees 461
Inactive employees or beneficiaries currently receiving benefits 371 Inactive employees entitled to, but not yet receiving benefits 226 Total 1,058

Contribution

Beginning in the fiscal year 2012-13, the City pre-funds the Plan through California Employers’ Retiree Benefit Trust (CERBT) by contributing the City’s Annual Required Contribution (ARC) every year. For the measurement period 2020-21, the City contributed $1,410,000.

CERBT is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to prefund retirement health benefits. The CERBT issu es a publicly available financial report that included financial statements and required supp lementary information for the City, not individualizing, but in aggregate with the other CERBT participants. That report may be obtained by contacting CalPERS.

DRAFT 11.30.2022 v2

95 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

114
Note 12 – Other Postemployment Benefits (Continued)

C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

The City’s net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2020.

Actuarial Assumptions

The total OPEB liability, measured as of June 30, 2021, was determined using the following actuarial assumptions:

Actuari al Assumptions
Actuarial Valuation Date June 30, 2021
Actuarial Cost M ethod Entry-Age Normal Cost
Asset Valuation Method Market Value
Inflation 2.50%
Payroll Growth 2.75%
Salary Increases Aggregate - 2.75% annually
Merit - CalPERS 2000-2019 Experience Study
Contribution Policy Contributes full ADC
Discount Rate 6.25%
Mortality, Retirement, Disability, Termination
Mortality Improvement
Medical Trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of

3.75% in 2076
Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076
CalPERS 2000-2019 Experience Study
Mortality projected fully generational with Scale MP-2021 Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076

The actuarial assumptions used in the Ju ly 1, 2021 valuation were based on th e results of an actuarial experience study for the period July 1, 2020 through June 30, 2021.

The long-term expected rate of return on OPEB plan i nvestments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major a sset class. These ranges are comb ined to produce the long- term expected rate of return by wei ghting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Target
Allocation
L ong-Term E xpected
Rate of Return
Global Equity 59.00% 4.560%
Fixed Income 25.00% 0.780%
TIPS 5.00% -0.080%
Commodities 3.00% 1.220%
REITs 8.00% 4.060%
100.00%
Long-term assumed rate of inflation 2.500%
Long-term expected rate of return 6.250%

DRAFT 11.30.2022 v2

96 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

115
Note 12 – Other Postemployment Benefits (Continued)

C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)

Discount Rate

The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the City plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

The following presents the net OPEB liability of the City, as well as what the net OPEB 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, for the measurement period ended June 30, 2021:

Discount Rate -1% Current Discount Rate Discount Rate +1% (5.25%) (6.25%) (7.25%)
9,543,110$ 7,513,008 $ 5,822,382 $ Plan's Net OPEB Liabiltiy

Sensitivity of the Net OPEB Liability to Changes in Healthcare Cost Trend Rates

The following presents the net OPEB liability of the City, as well as what the net OPEB liability would be if it were calculated using a health care cost trend rates that are one percentage point lower or one percentage point higher than the current rates, for the measurement period ended June 30, 2021:

1% Decrease
(5.5% - 2.75%)
Current Healthcare
Trend Rate
(6.5% - 3.75%)
1% Increase
(7.5% to 4.75%)
5,705,847$ 7,513,008 $ 9,752,694 $ Plan's Net OPEB Liabiltiy

DRAFT 11.30.2022 v2

97 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

116
Note 12 – Other Postemployment Benefits (Continued)

C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)

Change in Net OPEB Liability

Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability
Balance at June 30, 2020 17,024,683$ 6,447,726$ 10,576,957$ Changes Recognized for the M easurement Periood:

Service Cost 497,327 - 497,327 Interest on the total OPEB liability 1,144,590 - 1,144,590 Difference between expected and actual experience (670,829) - (670,829) Changes in assumptions (86,901) - (86,901) Contribution from the employer - 1,817,000 (1,817,000) Net investment income - 2,140,859 (2,140,859) Administrative expenses - (9,723) 9,723 Benefit payments (1,130,244) (1,130,244) - Net changes during July 1, 2020 to June 30, 2021 (246,057) 2,817,892 (3,063,949) Balance at June 30, 2021 16,778,626$ 9,265,618$ 7,513,008$

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the year ended June 30, 2022, OPEB expense/(inc ome) in the amount of $(53,189) is included in the accompanying statement of activities.

At June 30, 2022, the City reported deferred outflows of resources and defe rred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Contributions made after measurement date 2,056,602 $ - $ Differences between expected and actual experience - (2,190,169) Changes in assumptions - (313,918) Net difference between projected and actual
earnings of OPEB Plan investments - (1,224,870) 2,056,602$ (3,728,957) $

Amounts reported as deferred inflows of resources relate d to OPEB will be recognized as OPEB expense as follows:

Year Ending
June 30 Amount
2023 (1,142,435)$
2024 (1,134,435)
2025 (894,436)
2026 (453,136)
2027 (104,515)
Thereafter -
Total (3,728,957)$

DRAFT 11.30.2022 v2

98 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

117
Note 13 – Risk Management

A. Coverage

The City retains a level of risk for both general liability and workers’ compensation. The City carries commercial insurance above this limit. The City maintains occurrence basis insurance coverage up to $25 million in excess of its $1,000,000 risk retention per occurrence plus $1, 000,000 individual member corridor deductible for general liability, and $25 million in excess of its $1,000,000 risk re tention for workers’ compensation. The City has not had claims settlements exceeding insurance coverage for each of the past three fiscal years.

B. Claims Activity

The City’s claims activity is recorded in its internal service funds. Estimat ed liabilities are reco rded when it is probable that a loss has occurred and the amount of the lo ss can be reasonably estimated. Claims that have been incurred but not reported (IBNRs) are also included in the liability estimates.

A summary of the changes in claims liabilities for the past three fiscal years follows:

Current Year
Beginning of Claims and Balance at Due in
Fiscal Year Changes in Claim Fiscal Year Due Within M ore than Liability Esimates Payments End One Year One Year
Workers' Compensation
2022 15,936,000$ (2,514,129)$ (1,224,871)$ 12,197,000$ 2,800,000$ 9,397,000$ 2021 15,337,000 3,697,329 (3,098,329) 15,936,000 2,800,000 13,136,000 2020 12,748,000 5,342,281 (2,753,281) 15,337,000 2,600,000 12,737,000 Dental
2022 -$ 473,383$ (473,383)$ -$ -$ -$ 2021 - 661,872 (661,872) - - - 2020 - 599,814 (599,814) - - - General Liability
2022 1,116,000$ 1,663,353$ (907,353)$ 1,872,000$ 500,000$ 1,372,000$ 2021 1,071,000 789,699 (744,699) 1,116,000 500,000 616,000 2020 1,250,000 91,581 (270,581) 1,071,000 500,000 571,000

Note 14 – Joint Ventures

City of San Mateo and Estero Municipal Improvement District

The City and the Estero Municipal Improvement District (Estero), entered into a “Joint Exercise of Powers Agreement” in 1974 to construct, maintain, and operate a joint use wastewater treatment plant facility (Facility). The City and Estero jointly use and own the Facility. During the original construction phase, the City served as the lead agency. Currently, the day-to-day operations and maintenance of the treatment plant are managed by the City. Both parties continue to make capital contributions and pay for operational and maintenance costs. During the fiscal year ended June 30, 2022, the City paid $24,408,729 for operations and maintenance of the wastewater treatment plant facility.

DRAFT 11.30.2022 v2

99 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

118
Note 14 – Joint Ventures (Continued)

City of San Mateo and Estero Municipal Improvement District (Continued)

In June of 2019, the City of San Mate o and the Estero Municipal Improvement District/City of Foster City jointly issued the 2019 Series Wastewater Revenue Bonds in the amount of $270,000,000 (2019 Wastewater Bonds) through a joint powers financing authority, San Mateo-Foster City Public Financing Authority (Authority). Of the total issuance amount, the City is responsible for $236,180,000. Inter est payments are payable semi-annually on February 1 and August 1, commencing February 1, 2020. The bonds mature through August 1, 2049, and bear interest at the rate of 4- 5%. The issuance resulted in a bond premium of $53,780,407, of which the City’s share was $47,201,120.

In July of 2021, the City of San Mateo and the Estero Municipal Improvement District/City of Foster City jointly issued the 2021 Series A and B Wastewater Revenue Notes and 2021 Series A Wastewater Revenue Refunding Bonds in the amount of $348,590,000 through a joint powers financing authority, San Mateo-Foster City Public Financing Authority (Authority). Of the total issuance amount, the City is responsible for $285,830,000. Interest payments are payable semi- annually on February 1 and August 1, commencing August 1, 2022. The bonds mature through August 1, 2041, and bear interest at the rate of 4.15-5.25%. The issuance resulted in a bond premium of $ 65,920,038, of which the City’s share was $54,211,533.

Interest payments and revenue bond retirements are serviced by the revenues generated by the City of San Mateo Sewer Enterprise Fund and the Foster City/Estero Municipal Improvement District Wastewater Enterprise Fund pursuant to a reimbursement agreement. The City’s total principal and interest remaining to be paid on the bonds is $774,915,725.

City of San Mateo, City of Belmont/Belmont Fire Protec tion District, and City of Foster City/Estero Municipal Improvement District

On November 22, 2017, the City of San Mateo, the City of Belmont/Belmont Fire Protection District, and the City of Foster City/Estero Municipal Improvement District form ed a Joint Powers Authority (JPA) named the San Mateo Consolidated Fire Department (SMC Fire) to provide integr ated and comprehensive fire protection, fire prevention, and emergency response services to all three communities serving a population of over 164,000. Effective January 13, 2019, San Mateo’s financial contributions to SMC Fire is accounted for annually as an investment in equity interest in its government-wide financial statements.

SMC Fire is governed under the terms of the JPA Agr eement by a Board of Directors consisting of one voting representative and one alternate who are elected members from the governing boards of the three JPA Member Agencies. Each member agency has the following weighted vote: City of San Mateo (60%), City of Belmont (20%), and City of Foster City (20%), with a minimum weighted vote of 80% needed for any action to be taken.

As of June 30, 2022, the City has an investment in JP A equity of $13,174,277. Ever y year the City adjusts the investment based on the City’s proporti on of financial activity at SMC Fire (6 0%). Audited financial statements of SMC Fire are available from City of San Mateo, 330 West 20th Avenue, San Mateo, CA 94403.

DRAFT 11.30.2022 v2

100 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

119
Note 14 – Joint Ventures (Continued)

City of San Mateo, City of Belmont/Belmont Fire Protec tion District, and City of Foster City/Estero Municipal Improvement District (Continued)

The condensed audited financial information of the JPA as of June 30, 2022 is as follows (in millions):

Total assets and deferred outflows 32,444,107$
Total liabilities and deferred inflows 10,486,979$
Total equities 21,957,128$
Expenses 44,398,922$
Program revenues 48,160,245$
General revenues 48,635$
Change in net position 3,809,958$

Note 15 – Other Required Disclosures

A. Deficit Fund Balances/Net Position

At June 30, 2022, the following funds had a fund balances (deficit) or unrestricted net position (deficit), which will be eliminated through the reduction in future expenditures and/or the use of new unrestricted funding sources:

Fund Fund Type Deficit
2% Hotel Tax Fund Capital Projects Fund 1,363,829$
Permanent Local Housing Allocation Fund Special Revenue Fund 38,081 Benefit Fund Internal Service Fund 266,118
Comprehensive Liability Insurance Fund Internal Service Fund 1,517,337

B. Expenditures Exceeding Appropriations

For the year ended June 30, 2022, expenditures exceeded appropriations in the following funds by function:

Exce ss Expe ndi ture s
Fund Function over Appropriations
General Fund Finance 5,919
General Fund Public safety: Fire 5,551
General Fund Debt service: Principal 705,524
General Fund Debt service: Interest and fiscal charges 34,188 Construction Services Special Revenue Fund Information technology 2,594 Construction Services Special Revenue Fund Public works 360,726 General Projects Capital Projects Fund Debt service: Principal 545,938 General Projects Capital Projects Fund Debt service: Interest and fiscal charges 85,512 Police Grants Special Revenue Fund Public safety: Police 29,279 Police Grants Special Revenue Fund Capital outlay 27,474 HOME Special Revenue Fund Community Development 655,434 General Obligation Bonds Debt Service Fund Debt service: Interest and fiscal charges 1,174 DRAFT 11.30.2022 v2

101 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

120
Note 16 – Fund Balance Classification

The City classifies fund balances, as shown on the Balance Sheet – Governmental Funds , as follows as of June 30, 2022:

Construction
Services General Non-major
General Special Revenue Capital Projects Governmental
Fund Fund Fund Funds Total
Nonspendable
Prepaid items and inventories 357,245 $ - $ 9,000$ - $ 366,245$ Total nonspendable 357,245 - 9,000 - 366,245 Restricted
Debt service - - - 5,929,315 5,929,315 Infrastructure - - 24,459,421 - 24,459,421 Housing - - 823,216 9,277,968 10,101,184 Other capital projects - - 4,332,451 3,582,863 7,915,314 Public street and related facilities - - 11,793,018 15,870,260 27,663,278 Parks - - 572,940 - 572,940 Public safety - - - 503,267 503,267 Total restricted - - 41,981,046 35,163,673 77,144,719 Committed
Debt service 586,800 - - 4,843 591,643 Infrastructure - - 2,308,150 - 2,308,150 Other capital projects 7,957,380 - 4,240,103 - 12,197,483 Public street and related facilities 2,250,151 - 5,474,028 - 7,724,179 Parks - - 1,469,320 - 1,469,320 Other purposes:

Solid water - - - 9,242,831 9,242,831 Advance planning - - - 4,107,988 4,107,988 Construction services - 36,314,126 - 36,314,126 Employee compensation negotiation 5,500,000 - - - 5,500,000 Landfill post-closure - - - 2,720,100 2,720,100 Total committed 16,294,331 36,314,126 13,491,601 16,075,762 82,175,820 Assigned
Public safety 54,177 - - - 54,177 Other purposes 1,043,801 - - - 1,043,801 Total assigned 1,097,978 - - - 1,097,978 Unassigned 93,702,456 - - (1,401,910) 92,300,546 Total fund balances 111,452,010$ 36,314,126$ 55,481,647$ 49,837,525$ 253,085,308$

Note 17 – Successor Agency Private Purpose Trust For Assets of Former Redevelopment

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of Ca lifornia. This action impacted the reporting entity of the City of San Mateo that previously had reported the City ’s Redevelopment Agency within the reporting entity as a blended component unit. The Bill provided that upon dissolution of a redevelopment agency, either the City or another unit of local government agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 9, 2012, the City Council elected to become the Successor Agency for the former Redevelopment agency in accordance with the Bill as part of City Resolution No. 2 (2012).

DRAFT 11.30.2022 v2

102 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

121
Note 17 – Successor Agency Private Purpose Trust For Assets of Former Redevelopment (Continued)

After enactment of the law, which occurred on June 28, 2 011, redevelopment agencies in the State of California were prohibited from entering into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets could only be used to pa y enforceable obligations in existence at the date of dissolution (including the completion of any unfinished project s that were subject to legally enforceable contractual commitments). In accordance with the Bill, the State Controller’s Office (SCO) of the State of California reviewed the propriety of any transfers of assets between the San Mateo Redevelopment Agency (RDA) and the City that occurred after January 1, 2011.

On October 23, 2013, the SCO issued a report stating that there were no identified unallowable transfers of assets that occurred during the review period between the RDA, the City , and/or any other public agencies. In April 2013, the California Department of Finance (DOF) issued a Findi ng of Completion to the Su ccessor Agency which allowed proceeds ($3.3 million) from the Merged Area Tax Allocation Bonds, Series 2005A and Series 2007A, to be used to reimburse the City of San Mateo for construction costs of Fire Station 24 in accordance with the Cooperation Agreement between the City and the Successor Agency. Construction of Fire Station 24 was a use of the bond proceeds that is consistent with the stated purposes of the original bond covenants, and these bonds proceeds were utilized in this manner during fiscal year 2013-14. Once a Finding of Completion is issued by the DOF, State law (AB 1484) requires that successor agencies prepare a Long- Range Property Management Plan (LRPMP) for the disposition and use of the remaining assets of the former San Mateo Redevelopment Agency The Successor Agency submitted the required LRPMP, as amended and approved by the Oversight Board, to the DOF on October 17, 2013. The LRPMP addressed the disposition of five properties that were under title with the Successor Agency. The Successor Agency received a formal response from the DOF on April 28, 2014, rejecting the LRPMP as submitted. The letter outlined that public parking was not considered a governmental use by the State and as a result, the City needed to examine other available disposition options for several other remaining properties. As required, the Successor Agency submitted to the DOF on October 1, 2014, a revised LRPMP that was approved by the Oversight Board. In February 2015, the revised LRPMP was approved by the DOF after the Oversight Board approval. The actual land titles transferred to the City from the Successor Agency for th e former San Mateo Redevelopment Ag ency in July 2015. The outstanding enforceable obligations currently only include amounts owed to holders of the Successor Agency of Redevelopment Agency Tax Allocation Refunding Bonds Series 2015A, Successor Agency of Redevelopment Agency Tax Allocation Refunding Bonds Series 2015B, and the Successor Agency of Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A.

Late in the 2016-17 fiscal year, the Successor Agency began the due diligence process to refund the 2007 Tax Allocation Bonds, which were eligible to be refunded as of August 1, 2017. The Agency approved the refunding and an amendment to the Last and Final ROPS on June 5, 2017, and the Oversight Board made the same approvals on June 7, 2017. The resolutions of appr oval were submitted to the Department of Finance in June 2018, with approval for the Oversight Board Resolutions coming on August 21, 2017. The Department of Finance approved the amendment to the Last and Final ROPS, and its confirmation that this entire transaction would be considered the first of two allowed amendments to the Last and Final ROPS in a letter dated December 13, 2017.

DRAFT 11.30.2022 v2

103 of 210

City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

122
Note 18 – Commitments and Contingencies

A. Litigation

The City is currently a party to various claims and legal proceedings. Although the outcome of these lawsuits is not presently determinable, it is mana gement’s opinion that the ultimate li abilities, if any, resulting from such claims and proceedings will not materially affect the financial position of the City.

B. Contingent Liabilities

On March 1, 1993, the City issued Certificates of Participation in the aggregate of $10,250,000 for the benefit of San Mateo Community Hospital (Hospital), a California nonprofit public benefit corporation. The Hospital is not included in the City’s reporting entity. The City is obligated to make the purchase payments only from and to the extent that it receives revenue from the Hospital. They are not secured by any pledge of taxes or other revenues of the City. In addition, the purchase payments are insu red by the Office of Statewide Health Planning and Development of the State of California. As of June 30, 2022, the City has not recorded revenues from the Hospital.

C. Federal and State Grants

The City participates in various federal grant programs, the principal of which are subject to program compliance audits pursuant to the Single Audit act as amended. Acco rdingly, the City’s compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, alt hough the City anticipates such amounts, if any, will be immaterial.

D. Contractual Commitments

The City has capital contractual commitments for which funds have been encumbered as of June 30, 2022.

Encumbrances related to capital projects are funded throug h the current year appropriated budget, which carries over to the following year.

The following is a list of the commitments at June 30, 2022:

Remaining
Commitment
Clean Water Program 158,744,759 $
Sanitary Sewer Rehabilitation and Improvement Project 4,259,095 Streetscape Improvements 2,075,368
Miscellaneous Projects 5,797,803
Total 170,877,025$

DRAFT 11.30.2022 v2

104 of 210

123

REQUIRED SUPPLEMENTARY INFORMATION
DRAFT 11.30.2022 v2

105 of 210

124
This page intentionally left blank.

DRAFT 11.30.2022 v2

106 of 210

City of San Mateo
Required Supplementary Information (Unaudited)
Budgetary Information
For the Year Ended June 30, 2022

125
Budgetary Information

Budgetary Control and Budgetary Accounting

The City has two-year business plan development proce dures. The two-year business plan process requires that each department submit two one-year expenditure plans and revenue estimates to be provided to the City Council for approval. Only the first year of the two-year bu siness plan will be adopted. The second year represents a projected plan which will be subject to amendment in the following year. As a part of the two-year business plan, the focus in year one is on the operating budget, while the focus on year two is the City’s CIP.

In any budget cycle, to remain adaptable to changing economic and or operational conditions, the City may choose to develop a one-year plan instead of a two-year business plan. As a result of the immediate and severe financial impact of COVID-19, the City shifted to a one-year plan . With nearly two years of pandemic-related recession experience under its belt, the City plan on shifting back to the two-year business plan for 2022-24.

The City controls its budget at the fund and department level. The City Council is the sole budget authority.

Activities of the General Fund, Special Revenues Funds, Debt Service Funds, Proprietary Funds, and Capital Funds are included in the annual budget.

DRAFT 11.30.2022 v2

107 of 210

City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – General Fund
For the Year Ended June 30, 2022

126

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES :

Property taxes 66,181,679 $ 66,181,679 $ 72,348,402 $ 6,166,723 $ Sales taxes 25,488,900 25,488,900 29,123,009 3,634,109 Other taxes 18,742,822 18,742,822 28,256,902 9,514,080 Licenses, building and other permits 55,000 55,000 48,351 (6,649) Fines, forfeitures and penalties 1,828,000 1,828,000 1,454,845 (373,155) Intergovernmental 12,315,126 12,315,126 12,233,722 (81,404) Charges for Services 10,398,981 10,398,981 11,797,192 1,398,211 Investment income 1,200,000 1,200,000 (3,243,002) (4,443,002) Parking Meter and Lease Revenue 2,482,500 2,482,500 4,281,255 1,798,755 Other revenues 3,034,837 3,034,837 3,370,229 335,392 Total revenues 141,727,845 141,727,845 159,670,905 17,943,060 EXPENDITURES :

Current:

General government:

City Council 371,627 378,887 304,993 73,894 City Manager 2,279,394 2,371,234 2,203,029 168,205 City Clerk 971,730 942,077 896,186 45,891 City Attorney 1,118,322 1,122,413 1,106,200 16,213 Finance 3,872,741 3,898,578 3,904,497 (5,919) Information technology 4,023,861 4,050,235 3,902,047 148,188 Human Resources 2,342,743 2,361,581 2,104,302 257,279 Community development 1,993,625 2,010,096 1,618,051 392,045

Public safety:

Police 51,127,574 51,700,221 51,417,279 282,942 Fire 25,217,245 25,217,245 25,222,796 (5,551) Public works 10,056,844 10,145,141 6,892,686 3,252,455 Parks and recreation 17,024,567 17,116,716 16,243,201 873,515 Golf 2,507,290 2,522,792 2,368,719 154,073 Library 8,307,993 8,372,583 7,645,003 727,580 Non-departmental 8,253,040 8,363,040 8,244,606 118,434 Debt service:

Principal 715,562 715,562 1,421,086 (705,524) Interest and fiscal charges 217,415 217,415 251,603 (34,188) Total expenditures 140,401,573 141,505,816 135,746,284 5,759,532

REVENUES OVER
(UNDER) EXPENDITURES 1,326,272 222,029 23,924,621 12,183,528 Budgeted Amounts

DRAFT 11.30.2022 v2

108 of 210

City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – General Fund (Continued) For the Year Ended June 30, 2022

127

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
OTH E R F I NA NCI NG SOU R CE S (U SE S):

Transfers in 1,750,500 1,747,500 312,896 (1,434,604) Transfers out (7,750,125) (7,910,610) (4,743,762) 3,166,848 Total other financing sources (uses) (5,999,625) (6,163,110) (4,430,866) 1,732,244 NET CHANGES IN FUND BALANCES (4,673,353)$ (5,941,081) $ 19,493,755 13,915,772 $ FUND BALANCES:

Beginning of year 91,958,255
End of year 111,452,010$
Budgeted Amounts

DRAFT 11.30.2022 v2

109 of 210

128
This page intentionally left blank.

DRAFT 11.30.2022 v2

110 of 210

City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – Construction Services Special Revenue Fund For the Year Ended June 30, 2022

129

Variance with
Final Budget
Actual Favorable/
Original Fina l Amounts (Unfavorable)
REVENUES :

Licenses, building and other permits 7,396,600$ 7,396,600$ 6,346,921$ (1,049,679)$ Charges for services 1,200,000 1,200,000 2,453,808 1,253,808 Investment income - - (1,059,345) (1,059,345) Total revenues 8,596,600 8,596,600 7,741,384 (855,216) EXPENDITURES :

Current:

General government:

City Manager 106,399 107,476 99,736 7,740 City Attorney 205,465 206,757 185,434 21,323 Information technology 114,680 115,757 118,351 (2,594) Community development 9,341,718 9,398,666 9,193,684 204,982 Public works 439,225 445,684 806,410 (360,726) Total expenditures 10,207,487 10,274,340 10,403,615 (129,275)

REVENUES OVER
(UNDER) EXPENDITURES (1,610,887) (1,677,740) (2,662,231) (725,941) OTHER FINANCING SOURCES (USES):

Transfers out (2,471,235) (2,529,506) (2,387,568) 141,938 Total other financing sources (uses) (2,471,235) (2,529,506) (2,387,568) 141,938 NET CHANGES IN FUND BALANCES (4,082,122)$ (4,207,246)$ (5,049,799) (584,003)$ FUND BALANCES:

Beginning of year 41,363,925
End of year, budgetary baisis 36,314,126$
Budgeted Amounts

DRAFT 11.30.2022 v2

111 of 210

City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30, 2022

130

Total Pension Liability 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 1 Service cost 5,417,134$ 5,314,317$ 5,232,210$ 5,037,653$ 4,518,151$ 3,993,514$ 3,892,876$ 3,828,331$ Interest on total pension liability 20,553,253 19,910,417 19,039,419 18,044,112 17,389,674 17,090,620 16,438,129 15,777,588 Differences between expected and actual
experience (812,628) 2,219,628 4,029,100 1,103,888 (3,106,399) (331,929) (627,100) - Changes in assumptions - - - (1,424,920) 13,781,463 - (3,817,336) - Changes in benefit terms - - - - - - - - Benefit payments, including refunds of employee
contributions (15,894,895) (15,050,756) (13,650,253) (12,925,302) (12,461,817) (11,970,354) (11,069,836) (10,298,370) Net change in total pension liab ility 9,262,864 12,393,606 14,650,476 9,835,431 20,121,072 8,781,851 4,816,733 9,307,549 Total pension liab ility - beginning 293,509,581 281,115,975 266,465,499 256,630,068 236,508,996 227,727,145 222,910,412 213,602,863 Total pension liab ility - ending (a) 302,772,445$ 293,509,581 $ 281,115,975 $ 266,465,499 $ 256,630,068 $ 236,508,996 $ 227,727,145 $ 222,910,412 $ Plan fiduciary net position
Contributions - employer 8,968,085 8,308,013 7,343,013 6,287,676 5,873,612 5,126,750 4,501,438 3,783,964 Contributions - employee 2,454,476 2,412,286 2,463,688 2,208,675 2,041,614 1,928,776 1,950,191 1,924,145 Investment income (net of administrative expenses) 47,026,715 10,192,254 12,797,943 15,561,240 18,815,053 868,395 3,955,299 26,395,339 Benefit payments (15,894,895) (15,050,756) (13,650,253) (12,925,302) (12,461,817) (11,970,354) (11,069,836) (10,298,370) Other (208,546) (286,451) (138,259) (832,007) (251,079) (106,172) (198,614) - Net change in plan fiduciary net position 42,345,835 5,575,346 8,816,132 10,300,282 14,017,383 (4,152,605) (861,522) 21,805,078 Plan fiduciary net position - beginning 208,767,343 203,191,997 194,375,865 184,075,583 170,058,200 174,210,805 175,072,327 153,267,249 Plan fiduciary net position - ending (b) 251,113,178$ 208,767,343 $ 203,191,997 $ 194,375,865 $ 184,075,583 $ 170,058,200 $ 174,210,805 $ 175,072,327 $ Net pension liability - ending (a)-(b) 51,659,267$ 84,742,238$ 77,923,978$ 72,089,634$ 72,554,485$ 66,450,796$ 53,516,340$ 47,838,085$ Plan fiduciary net position as a percentage
of the total pension liability 82.94% 71.13% 72.28% 72.95% 71.73% 71.90% 76.50% 78.54% Covered payroll 36,154,902$ 35,484,738$ 35,068,361$ 34,688,256$ 31,556,856$ 28,252,538$ 26,888,005$ 25,179,750$ Net pension liability as a percentage of
covered payroll 142.88% 238.81% 222.21% 207.82% 229.92% 235.20% 199.03% 189.99% Notes to Schedule:
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.

Miscellaneous Plan

DRAFT 11.30.2022 v2

112 of 210

City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022

131

Total Pension Liability 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 1 Service cost 4,521,737$ 4,385,424$ 4,449,133$ 7,417,456$ 7,342,172$ 6,024,059$ 5,876,118$ 5,866,003$ Interest on total pension liability 30,250,946 29,312,094 28,324,725 27,109,372 25,954,748 25,211,819 24,350,391 23,707,497 Differences between expected and actual
experience 2,818,839 3,435,208 4,999,458 4,313,272 (652,769) (1,229,918) (4,513,903) - Changes in assumptions - - - (1,764,356) 20,868,220 - (5,706,829) - Changes in benefit terms - - - - - - - - Benefit payments, including refunds of employee
contributions (23,890,302) (23,017,166) (21,718,515) (20,369,839) (19,099,929) (18,246,437) (17,373,723) (16,930,299) Net change in total pension liab ility 13,701,220 14,115,560 16,054,801 16,705,905 34,412,442 11,759,523 2,632,054 12,643,201 Total pension liab ility - beginning 429,955,594 415,840,034 399,785,233 383,079,328 348,666,886 336,907,363 334,275,309 321,632,108 Total pension liab ility - ending (a) 443,656,814$ 429,955,594 $ 415,840,034 $ 399,785,233 $ 383,079,328 $ 348,666,886 $ 336,907,363 $ 334,275,309 $ Plan fiduciary net position
Contributions - employer 13,566,455 12,284,260 14,131,640 13,411,260 13,038,623 10,598,960 9,719,832 8,342,908 Contributions - employee 1,789,979 1,576,589 2,260,834 2,509,623 2,358,978 2,232,023 2,180,686 1,986,679 Investment income (net of administrative expenses) 60,169,718 13,065,390 16,597,022 20,229,991 24,165,223 1,116,133 4,925,152 33,561,544 Benefit payments (23,890,302) (23,017,166) (21,718,515) (20,369,839) (19,099,929) (18,246,437) (17,373,723) (16,930,299) Other (266,493) (371,100) (179,352) (1,073,204) (320,823) (135,133) (249,571) - Net change in plan fiduciary net position 51,369,357 3,537,973 11,091,629 14,707,831 20,142,072 (4,434,454) (797,624) 26,960,832 Plan fiduciary net position - beginning 266,775,612 263,237,639 252,146,010 237,438,179 217,296,107 221,730,561 222,528,185 195,567,353 Plan fiduciary net position - ending (b) 318,144,969$ 266,775,612 $ 263,237,639 $ 252,146,010 $ 237,438,179 $ 217,296,107 $ 221,730,561 $ 222,528,185 $ Net pension liability - ending (a)-(b) 125,511,845$ 163,179,982 $ 152,602,395 $ 147,639,223 $ 145,641,149 $ 131,370,779 $ 115,176,802 $ 111,747,124 $ Plan fiduciary net position as a percentage
of the total pension liability 71.71% 62.05% 63.30% 63.07% 61.98% 62.32% 65.81% 66.57% Covered payroll 16,442,390$ 16,067,107$ 22,211,287$ 28,442,831$ 27,088,471$ 24,092,535$ 22,899,741$ 21,936,448$ Net pension liability as a percentage of
covered payroll 763.34% 1015.62% 687.05% 519.07% 537.65% 545.28% 502.96% 509.41% Notes to Schedule:
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.

Safety Plan
DRAFT 11.30.2022 v2

113 of 210

City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Pension
For the Year Ended June 30, 2022

132

Fiscal Year: 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-151 Contractually determined
contribution (actuarially determined) 9,953,731$ 8,968,085 $ 8,308,301 $ 7,343,001 $ 6,287,697 $ 5,873,612 $ 5,331,714 $ 4,415,313 $ Contributions in relation to the
actuarially determined contributions (9,953,731) (8,968,085) (8,308,301) (7,343,001) (6,287,697) (5,873,612) (5,331,714) (4,415,313) Contribution deficiency (excess) -$ - $ - $ - $ - $ - $ - $ - $ Covered payroll 36,700,692 $ 36,154,902 $ 35,484,738 $ 35,068,361 $ 34,688,256 $ 31,556,856 $ 28,252,538 $ 26,888,005 $ Contributions as a percentage of
covered payroll 27.12% 24.80% 23.41% 20.94% 18.13% 18.61% 18.87% 16.42% Notes to Schedule
Methods and assumptions used to determine contribution rates for the fiscal year ended June 30, 2022:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
M ortality
Varies by entry age and service
1 Historical information is presented only for the periods for which GASB 68 is applicable.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale M P-2016 published by the Society of Actuaries.

The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 and 2015.

7.00% net of pension plan investment and administrative expenses.

2.750%

2.50%
Actuarial Value of Assets. For details, see June 30, 2019 Funding Valuation Report.

For details, see June 30, 2019 Funding Valuation Report Entry Age Normal
Miscellaneous Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2022 were derived from the June 30, 2019 funding valuation report.

DRAFT 11.30.2022 v2

114 of 210

City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions – Pension (Continued)
For the Year Ended June 30, 2022

133

Fiscal Year: 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-151 Contractually determined
contribution (actuarially determined) 14,717,993$ 13,566,455 $ 12,284,260 $ 12,496,190 $ 12,011,260 $ 11,663,623 $ 10,576,566 $ 9,444,848 $ Contributions in relation to the
actuarially determined contributions (14,717,993) (13,566,455) (12,284,260) (14,121,190) (13,411,260) (13,038,623) (10,576,566) (9,444,848) Contribution deficiency (excess) -$ - $ - $ (1,625,000)$ (1,400,000) $ (1,375,000) $ - $ - $ Covered payroll 17,257,920 $ 16,442,390 $ 16,067,107 $ 22,211,287 $ 28,442,831 $ 27,088,471 $ 24,092,535 $ 22,899,741 $ Contributions as a percentage of
covered payroll 85.28% 82.51% 76.46% 63.58% 47.15% 48.13% 43.90% 41.24% Notes to Schedule
Methods and assumptions used to determine contribution rates for the fiscal year ended June 30, 2022:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
M ortality
1 Historical information is presented only for the periods for which GASB 68 is applicable.

Safety Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2022 were derived from the June 30, 2019 funding valuation report.

Entry Age Normal
For details, see June 30, 2019 Funding Valuation Report Actuarial Value of Assets. For details, see June 30, 2019 Funding Valuation Report.

2.50%
Varies by entry age and service

2.750%

7.00% net of pension plan investment and administrative expenses.

The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 and 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale M P- 2016 published by the Society of Actuaries.

DRAFT 11.30.2022 v2

115 of 210

City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Total OPEB Liability and Related Ratios For the Year Ended June 30, 2022

134

2022 2021 2020 2019 2018
For the Measurement Period: 2020-2021 2019-2020 2018-2019 2017-2018 2016-20171 Total OPE B L iability:

Service Cost 497,327 $ 482,842 $ 692,000 $ 672,000 $ 653,000 $ Interest on the total OPEB liability 1,144,590 1,113,841 1,338,000 1,286,000 1,240,000 Changes in benefit terms - - - - - Difference between expected and actual experience (670,829) - (3,453,000) - - Changes in assumptions (86,901) - (509,000) - - Benefit payments (1,130,244) (1,181,000) (1,174,000) (1,269,000) (1,178,000) Net changes in Total OPEB Liability (246,057) 415,683 (3,106,000) 689,000 715,000 Beginning of Year 17,024,683 16,609,000 19,715,000 19,026,000 18,311,000 End of Ye ar 16,778,626$ 17,024,683$ 16,609,000$ 19,715,000$ 19,026,000$ Plan Fiduciary Net Position:

Employer contribution 1,817,000$ 1,825,000$ 1,950,000$ 1,913,000$ 1,852,000$ Employee contributions - - - - - Net investment income 2,140,859 239,112 495,000 372,000 334,000 Administrative expenses (9,723) (11,386) (7,000) (7,000) (2,000) Benefit payments (1,130,244) (1,181,000) (1,174,000) (1,269,000) (1,178,000) Net changes in Fiduciary Net Position 2,817,892 871,726 1,264,000 1,009,000 1,006,000 Beginning of Year 6,447,726 5,576,000 4,312,000 3,303,000 2,297,000 End of Ye ar 9,265,618$ 6,447,726$ 5,576,000$ 4,312,000$ 3,303,000$ Ne t O PEB Li abi l i ty 7,513,008$ 10,576,957$ 11,033,000$ 15,403,000$ 15,723,000$ Fiduciary Net Position as a
pe rce ntage of Total O PEB Li abi l i ty 55.22% 37.87% 33.57% 21.87% 17.36% Covered Payroll 57,176,000$ 55,405,000$ 62,798,000$ 66,133,000$ 57,300,000$ Net OPEB Liability as a % of Payroll 13.14% 19.09% 17.57% 23.29% 27.44% 1 Historical information is presented only for the periods for which GASB 75 is applicable.

DRAFT 11.30.2022 v2

116 of 210

City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - OPEB
For the Year Ended June 30, 2022

135

2021-22 2020-21 2019-20 2018-19 2017-18
1 Actuarially determined contribution 1,319,000$ 1,281,000$ 1,817,000$ 1,764,000$ 1,913,000$ Contributions in relation to the
actuarially determined contributions (2,056,602) (1,817,000) (1,825,000) (1,950,000) (1,913,000) Contribution deficiency (excess) (737,602)$ (536,000)$ (8,000)$ (186,000)$ -$ Covered-employee payroll 59,443,000$ 57,176,000$ 55,405,000$ 62,798,000$ 66,133,000$ Contributions as a percentage of
covered-employee payroll 3.46% 3.18% 3.29% 3.11% 2.89%
Notes to Schedule
Actuarial valuation date 6/30/2021
Actuarial cost method Entry-Age Normal Cost Method
Asset valuation method Actuarial value of assets
Inflation 2.50%
Investment rate of return 6.25%
Healthcare cost trend rate Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076; Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Projected salary growth and increase Varies by Entry Age and Service Mortality CalPERS 2000-2019 experience study
1 Information only presented from the implementation year The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2022 were as follows:

DRAFT 11.30.2022 v2

117 of 210

136
This page intentionally left blank.

DRAFT 11.30.2022 v2

118 of 210

SUPPLEMENTARY INFORMATION
137
DRAFT 11.30.2022 v2

119 of 210

This page intentionally left blank.
138
DRAFT 11.30.2022 v2

120 of 210

Special Revenue Funds:

Police Grants and Safety Fund accounts for the revenues and expenditures of State and Federal grants such as State Supplemental Law Enforcement Services Fund (SLESF).

Community Development Block Grant Fund (CDBG) accounts for revenue and expenditures of CDBG funds awarded by the Department of Housing and Urban Development.

HOME Special Revenue Fund accounts for revenue and expenditures of the Federal HOME grant program.

City Housing Special Revenue Fund accounts for revenues from a former Federal Rental Rehabilitation program and loan payments from the First-Time Homebuyer program.

Low and Moderate Income Housing Special Revenue Fund accounts for revenues and expenditures of the former Redevelopment Agency Special Revenue Fund.

Permanent Local Housing Allocation Special Revenue Fund accounts for revenues and expenditures of the Permanent Local Housing Allocation program.

Gas Tax Fund accounts for gasoline tax revenues as required by State law.

Road Maintenance and Rehabilitation Fund accounts for SB1 gasoline tax revenues as required by State law.

Advance Planning Fund accounts for fees collected through building permits and expenditures for activities relating to long term planning, including the general plan update.

Parking Fund accounts for parking meter revenues and expenditures of the City's downtown parking facilities.

Solid Waste Fund accounts for garbage collection surcharge revenues. The use of funds is restricted by City ordinance to street cleaning and waste disposal.

Parks and Recreation accounts for the Parks and Recreation Tax, as well as the Parks and Recreation Impact and In Lieu Fees to fund Parks and Recreation related projects through a transfer to the Capital Improvement Projects Fund.

Traffic Impact Fee accounts for traffic impact fee revenues to mitigate the cumulative impacts of new development and to accommodate future development.

Commercial Linkage Fee accounts for commercial linkage fee to be used for housing programs including acquisition, rehabilitation, or new construction of housing.

Debt Service Funds:

Landfill Bonds Fund accounts for debt service payments on landfill revenue bonds (to finance expenditures related to final closure of the former landfill site and construction of related park improvements) and post-closure monitoring costs.

General Obligation Bonds Fund accounts for voter-approved property tax revenues and debt service payments on general obligation bonds.

Capital Projects Funds:
2% Hotel Tax Fund accounts for the voter-approved 2% hotel tax revenue Measure C, the related transfers to the capital improvement fund, and debt service on variable rate bonds.

Non-Major Governmental Funds
139
DRAFT 11.30.2022 v2

121 of 210

Community
Police Development
Grants Block Grant HOME City Housing
Fund Fund Fund Fund
ASSETS
Cash and investments 245,851 $ 171,028 $ 102,835 $ 988,637 $ Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - - - 14,293 Interest receivable - - - - Taxes receivable - - - - Grants receivable 28,055 609,978 - - Prepaid items and supplies - - - - Due from other funds - - - - Advances to other funds - - - - Loans and notes receivable, net - 431,123 302,835 54,684 Total assets 273,906$ 1,212,129 $ 405,670 $ 1,057,614 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable - $ 497,148$ - $ - $ Retention payable - - - - Accrued payroll - - - - Due to other funds - 283,858 - - Advances from other funds - - - - Deposits payable - - - - Unearned revenues 28,055 - - - Total liabilities 28,055 781,006 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 73,824 32,642 - Total deferred inflows of resources - 73,824 32,642 - Fund Balances:

Nonspendable - - - - Restricted 245,851 357,299 373,028 1,057,614 Committed - - - - Assigned - - - - Unassigned (deficit) - - - - Total fund balances 245,851 357,299 373,028 1,057,614 Total liabilities, deferred inflows of
resources, and fund balances 273,906$ 1,212,129$ 405,670$ 1,057,614$ (Continued)
Special Revenue
Non-Major Governmental Funds
City of San Mateo
Combining Balance Sheet
For the Year Ended June 30, 2022
140
DRAFT 11.30.2022 v2

122 of 210

Permanent
Low & Moderate Local Housing Road Maintenance
Income Housing Allocation Gas Tax and Rehabilitation
Fund Fund Fund Fund
ASSETS
Cash and investments 1,286,877 $ 24,354 $ 882,734 $ 1,798,177 $ Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - - - - Interest receivable - - - - Taxes receivable - - 198,102 368,015 Grants receivable - - - - Prepaid items and supplies - - - - Due from other funds - - - - Advances to other funds - - - - Loans and notes receivable, net 3,285,453 - - - Total assets 4,572,330$ 24,354 $ 1,080,836$ 2,166,192 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 3,365 $ 62,435 $ - $ - $ Retention payable - - - - Accrued payroll - - - - Due to other funds - - - - Advances from other funds - - - - Deposits payable - - - - Unearned revenues - - - - Total liabilities 3,365 62,435 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 238,458 - - - Total deferred inflows of resources 238,458 - - - Fund Balances:

Nonspendable - - - - Restricted 4,330,507 - 1,080,836 2,166,192 Committed - - - - Assigned - - - - Unassigned (deficit) - (38,081) - - Total fund balances 4,330,507 (38,081) 1,080,836 2,166,192 Total liabilities, deferred inflows of
resources, and fund balances 4,572,330$ 24,354$ 1,080,836$ 2,166,192$ (Continued)
Special Revenue
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
141
DRAFT 11.30.2022 v2

123 of 210

Parks and
Advance Planning Parking Solid Waste Recreation
Fund Fund Fund Fund
ASSETS
Cash and investments 4,649,817 $ - $ 12,157,155$ 12,126,319 $ Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - - - - Interest receivable - - - - Taxes receivable - - 254,620 - Grants receivable 208,850 - - - Prepaid items and supplies - - - - Due from other funds - - - - Advances to other funds - - - - Loans and notes receivable, net - - - - Total assets 4,858,667$ - $ 12,411,775$ 12,126,319 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 44,914 $ - $ 61,702$ - $ Retention payable - - - - Accrued payroll - - - - Due to other funds - - - - Advances from other funds - - - - Deposits payable - - - - Unearned revenues - - 171,988 - Total liabilities 44,914 - 233,690 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 208,850 - - - Total deferred inflows of resources 208,850 - - - Fund Balances:

Nonspendable - - - - Restricted 496,915 - 2,935,255 12,126,319 Committed 4,107,988 - 9,242,830 - Assigned - - - - Unassigned (deficit) - - - - Total fund balances 4,604,903 - 12,178,085 12,126,319 Total liabilities, deferred inflows of
resources, and fund balances 4,858,667$ -$ 12,411,775$ 12,126,319$ (Continued)
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
Special Revenue
142
DRAFT 11.30.2022 v2

124 of 210

Traffic Commercial General
Impact Fee Linkage Fee Landfill Bonds Obligation Bonds
Fund Fund Fund Fund
ASSETS
Cash and investments 257,416$ 3,159,518$ 3,324,853$ 5,934,158$ Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - - - - Interest receivable - - - - Taxes receivable - - 50,000 - Grants receivable - - - - Prepaid items and supplies - - - - Due from other funds - - - - Advances to other funds - - - - Loans and notes receivable, net - - - - Total assets 257,416$ 3,159,518$ 3,374,853$ 5,934,158$

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable -$ -$ 7,144$ -$ Retention payable - - - - Accrued payroll - - - - Due to other funds - - - - Advances from other funds - - - - Deposits payable - - - - Unearned revenues - - - - Total liabilities - - 7,144 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances:

Nonspendable - - - Restricted 257,416 3,159,518 647,608 5,929,315 Committed - - 2,720,101 4,843 Assigned - - - - Unassigned (deficit) - - - - Total fund balances 257,416 3,159,518 3,367,709 5,934,158 Total liabilities, deferred inflows of
resources, and fund balances 257,416$ 3,159,518 $ 3,374,853 $ 5,934,158 $ (Continued)
Debt Service
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
Special Revenue
City of San Mateo
143
DRAFT 11.30.2022 v2

125 of 210

Capital Projects
Total Other
2% Hotel Tax Governmental
Fund Funds
ASSETS
Cash and investments -$ 47,109,729$ Restricted cash and investments held by fiscal agents 85,499 85,499 Accounts receivable, net - 14,293 Interest receivable - -
Taxes receivable 155,005 1,025,742
Grants receivable - 846,883
Prepaid items and supplies - - Due from other funds - -
Advances to other funds - -
Loans and notes receivable, net - 4,074,095 Total assets 240,504$ 53,156,241$

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 16,256$ 692,964 $
Retention payable - -
Accrued payroll - -
Due to other funds 1,588,077 1,871,935
Advances from other funds - - Deposits payable - -
Unearned revenues - 200,043
Total liabilities 1,604,333 2,764,942

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 553,774 Total deferred inflows of resources - 553,774 Fund Balances:

Nonspendable - -
Restricted - 35,163,673
Committed -
16,075,762
Assigned - -
Unassigned (deficit) (1,363,829) (1,401,910) Total fund balances (1,363,829) 49,837,525
Total liabilities, deferred inflows of
resources, and fund balances 240,504$ 53,156,241$ (Concluded)
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
144
DRAFT 11.30.2022 v2

126 of 210

Community
Police Develo pment
Grants Block Gran t HOME Cit y Housing
Fund Fund Fund Fund
REVENUES:

Property taxes -$ -$ -$ -$ Sales taxes - - - - Other taxes - - - - Licenses, building and other permits - - - - Fines, forfeitures and penalties 21,330 - - - Intergovernmental 390,879 1,742,858 - - Charges for services - - - - Investment income (loss) 4,301 - - - Assessments and garbage collection - - - - Parking meter and lease revenue - - - - Impact fees - - - - In lieu fees - - - - Capital contributions - - - - Other revenues - 31,273 86,797 149,789 Total revenues 416,510 1,774,131 86,797 149,789 EXPENDITURES:

Current:

Community development - 763,796 655,434 48,476 Public safety:

Police 336,968 - - - Public works - - - - Parks and recreation - - - - Capital outlay 89,551 - - - Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures 426,519 763,796 655,434 48,476

REVENUES OVER
(UNDER) EXPENDITURES (10,009) 1,010,335 (568,637) 101,313 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - (1,028,098) - - Total other financing sources (uses) - (1,028,098) - - NET CHANGES IN FUND BALANCES (10,009) (17,763) (568,637) 101,313 FUND BALANCES:

Beginning of year 255,860 375,062 941,665 956,301 End of year 245,851$ 357,299 $ 373,028 $ 1,057,614 $ (Continued)
Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances City of San Mateo
For the Year Ended June 30, 2022
Non-Major Governmental Funds
145
DRAFT 11.30.2022 v2

127 of 210

Permanent
Low & Moderate Local Housin g Road Maintenance
Income Housing Allocation Gas Ta x and Rehabilitation
Fund Fund Fund Fund
REVENUES:

Property taxes -$ -$ -$ -$ Sales taxes - - - - Other taxes - - - - Licenses, building and other permits - - - - Fines, forfeitures and penalties - - - - Intergovernmental - 177,002 2,186,200 2,089,730 Charges for services 289,612 - - - Investment income (loss) (96,625) (2,025) (18,204) (67,768) Assessments and garbage collection - - - - Parking meter and lease revenue - - - - Impact fees - - - - In lieu fees - - - - Capital contributions - - - - Other revenues - - - - Total revenues 192,987 174,977 2,167,996 2,021,962 EXPENDITURES:

Current:

Community development 2,934,341 198,376 - - Public safety:

Police - - - - Public works - - 1,747,500 - Parks and recreation - - - - Capital outlay - - - - Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures 2,934,341 198,376 1,747,500 -

REVENUES OVER
(UNDER) EXPENDITURES (2,741,354) (23,399) 420,496 2,021,962 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - (18,165) (1,892,481) Total other financing sources (uses) - - (18,165) (1,892,481) NET CHANGES IN FUND BALANCES (2,741,354) (23,399) 402,331 129,481 FUND BALANCES:

Beginning of year 7,071,861 (14,682) 678,505 2,036,711 End of year 4,330,507$ (38,081)$ 1,080,836$ 2,166,192$ (Continued)
City of San Mateo
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2022
Special Revenue
146
DRAFT 11.30.2022 v2

128 of 210

Parks and
Advance Planning Parking Solid Waste Recreation
Fund Fund Fund Fund
REVENUES:

Property taxes -$ -$ -$ -$ Sales taxes - - - - Other taxes - - - - Licenses, building and other permits - - - - Fines, forfeitures and penalties - - 724,997 - Intergovernmental - - 122,000 - Charges for services 1,038,518 - 779,683 - Investment income (loss) (132,308) - (290,939) (329,362) Assessments and garbage collection - - 971,388 137,026 Parking meter and lease revenue - - - - Impact fees - - - - In lieu fees - - - - Capital contributions - - 750,000 - Other revenues - - 563,721 - Total revenues 906,210 - 3,620,850 (192,336) EXPENDITURES:

Current:

Community development 1,514,331 - - - Public safety:

Police - - - - Public works - - 1,890,701 - Parks and recreation - - - 16,866 Capital outlay - - - - Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures 1,514,331 - 1,890,701 16,866

REVENUES OVER
(UNDER) EXPENDITURES (608,121) - 1,730,149 (209,202) OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - (2,363,915) (16,911) (224,513) Total other financing sources (uses) - (2,363,915) (16,911) (224,513) NET CHANGES IN FUND BALANCES (608,121) (2,363,915) 1,713,238 (433,715) FUND BALANCES:

Beginning of year 5,213,024 2,363,915 10,464,847 12,560,034 End of year 4,604,903$ - $ 12,178,085$ 12,126,319 $ (Continued)
City of San Mateo
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2022
Special Revenue
147
DRAFT 11.30.2022 v2

129 of 210

Traffic Commercial General
Impact Fee Linka ge Fee Landfill Bonds Obli gation Bonds Fund Fund Fund Fund
REVENUES:

Property taxes -$ -$ -$ 2,448,170$ Sales taxes - - - - Other taxes - - - - Licenses, building and other permits - 132,980 - - Fines, forfeitures and penalties - - - - Intergovernmental - - - - Charges for services - - - - Investment income (loss) (20,681) (125,504) (82,426) (135,902) Assessments and garbage collection - - 600,000 - Parking meter and lease revenue - - - - Impact fees 25,067 - - - In lieu fees - - - - Capital contributions - - - - Other revenues - - - - Total revenues 4,386 7,476 517,574 2,312,268 EXPENDITURES:

Current:

Community development - 4,005,141 - - Public safety:

Police - - - - Public works - - 72,943 - Parks and recreation - - - - Capital outlay - - - - Debt service:

Principal - - - 2,280,000 Interest and fiscal charges - - - 2,462,546 Total expenditures - 4,005,141 72,943 4,742,546

REVENUES OVER
(UNDER) EXPENDITURES 4,386 (3,997,665) 444,631 (2,430,278) OTHER FINANCING SOURCES (USES):

Transfers in - - - 2,663,647 Transfers out (590,325) - - - Total other financing sources (uses) (590,325) - - 2,663,647 NET CHANGES IN FUND BALANCES (585,939) (3,997,665) 444,631 233,369 FUND BALANCES:

Beginning of year 843,355 7,157,183 2,923,078 5,700,789 End of year 257,416$ 3,159,518 $ 3,367,709 $ 5,934,158 $ (Continued)
Debt Service
City of San Mateo
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2022
Special Revenue
148
DRAFT 11.30.2022 v2

130 of 210

Capital Projects
Total Other
2% Hotel Tax Governmenta l
Fund Funds
REVENUES:

Property taxes -$ 2,448,170$
Sales taxes - -
Other taxes 650,331 650,331
Licenses, building and other permits - 132,980 Fines, forfeitures and penalties - 746,327 Intergovernmental - 6,708,669 Charges for services - 2,107,813 Investment income (loss) 37 (1,297,406) Assessments and garbage collection - 1,708,414 Parking meter and lease revenue - - Impact fees - 25,067
In lieu fees - -
Capital contributions - 750,000 Other revenues - 831,580
Total revenues 650,368 14,811,945
EXPENDITURES:

Current:

Community development - 10,119,895 Public safety:

Police - 336,968
Public works - 3,711,144
Parks and recreation - 16,866 Capital outlay - 89,551
Debt service:

Principal 444,700 2,724,700
Interest and fiscal charges 151,185 2,613,731 Total expenditures 595,885 19,612,855

REVENUES OVER
(UNDER) EXPENDITURES 54,483 (4,800,910) OTHER FINANCING SOURCES (USES):

Transfers in 388,478 3,052,125
Transfers out (1,234,490) (7,368,898)
Total other financing sources (uses) (846,012) (4,316,773) NET CHANGES IN FUND BALANCES (791,529) (9,117,683) FUND BALANCES:

Beginning of year (572,300) 58,955,208
End of year (1,363,829)$ 49,837,525$
(Concluded)
City of San Mateo
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2022
149
DRAFT 11.30.2022 v2

131 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Sales taxes 2,894,000 $ 2,911,000 $ 4,285,971 $ 1,374,971 $ Intergovernmental 970,000 1,133,478 4,343,806 3,210,328 Charges for services - - 399,223 399,223 Investment income (loss) - - 105,689 105,689 Assessments and garbage collection 510,000 510,000 539,889 29,889 Parking meter and lease revenue - - 1,526,038 1,526,038 Impact fees 2,250,000 2,250,000 588,823 (1,661,177) Other revenues 250,000 250,000 829,021 579,021 Total revenues 6,874,000 7,054,478 12,618,460 5,563,982 EXPENDITURES:

Capital outlay 466,263,660 468,272,054 31,859,240 436,412,814 Debt service:

Principal - - 545,938 (545,938) Interest and fiscal charges - - 85,512 (85,512) Total expenditures 466,263,660 468,272,054 32,490,690 435,781,364

REVENUES OVER
(UNDER) EXPENDITURES (459,389,660) (461,217,576) (19,872,230) (430,217,382) OTHER FINANCING SOURCES (USES):

Transfers in 15,028,000 15,971,343 11,554,194 (4,417,149) Total other financing sources (uses) 15,028,000 15,971,343 11,554,194 (4,417,149) NET CHANGES IN FUND BALANCES (444,361,660)$ (445,246,233) $ (8,318,036) (434,634,531) $ FUND BALANCES:

Beginning of year 63,799,683

End of year 55,481,647$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual General Projects Capital Projects Fund
For the Year Ended June 30, 2022
Budgeted Amounts
150
DRAFT 11.30.2022 v2

132 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines, forfeitures and penalties - $ - $ 21,330$ 21,330 $ Intergovernmental 353,309 458,824 390,879 (67,945) Investment income (loss) - - 4,301 4,301 Total revenues 353,309 458,824 416,510 (42,314) EXPENDITURES:

Current:

Public safety:

Police 169,523 307,689 336,968 (29,279) Capital outlay 37,562 62,077 89,551 (27,474) Total expenditures 207,085 369,766 426,519 (56,753) NET CHANGES IN FUND BALANCES 146,224$ 89,058$ (10,009) 14,439$ FUND BALANCES:

Beginning of year 255,860
End of year 245,851$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Police Grants Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
151
DRAFT 11.30.2022 v2

133 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 759,246 $ 759,246 $ 1,742,858 $ 983,612 $ Other revenues 8,000 8,000 31,273 23,273 Total revenues 767,246 767,246 1,774,131 1,006,885 EXPENDITURES:

Current:

Community development 1,011,530 1,011,530 763,796 247,734 Total expenditures 1,011,530 1,011,530 763,796 247,734

REVENUES OVER
(UNDER) EXPENDITURES (244,284) (244,284) 1,010,335 759,151 OTHER FINANCING SOURCES (USES):

Transfers out (680,000) (680,000) (1,028,098) (348,098) Total other financing sources (uses) (680,000) (680,000) (1,028,098) (348,098) NET CHANGES IN FUND BALANCES (924,284)$ (924,284)$ (17,763) 411,053$ FUND BALANCES:

Beginning of year 375,062
End of year 357,299$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
152
DRAFT 11.30.2022 v2

134 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Other revenues 10,000 $ 10,000 $ 86,797 $ 76,797 $ Total revenues 10,000 10,000 86,797 76,797 EXPENDITURES:

Current:

Community development - - 655,434 (655,434) Total expenditures - - 655,434 (655,434)

REVENUES OVER
(UNDER) EXPENDITURES 10,000 10,000 (568,637) 732,231 OTHER FINANCING SOURCES (USES):

Transfers out - (10,000) - 10,000 Total other financing sources (uses) - (10,000) - 10,000 NET CHANGES IN FUND BALANCES 10,000$ -$ (568,637) 742,231$ FUND BALANCES:

Beginning of year 941,665
End of year 373,028$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual HOME Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
153
DRAFT 11.30.2022 v2

135 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Other revenues 12,000 $ 12,000 $ 149,789 $ 137,789 $ Total revenues 12,000 12,000 149,789 137,789 EXPENDITURES:

Current:

Community development 48,500 48,500 48,476 24 Total expenditures 48,500 48,500 48,476 24 NET CHANGES IN FUND BALANCES (36,500)$ (36,500) $ 101,313 137,765 $ FUND BALANCES:

Beginning of year 956,301
End of year 1,057,614$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual City Housing Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
154
DRAFT 11.30.2022 v2

136 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 80,000 $ 80,000 $ 289,612 $ 209,612 $ Investment income (loss) - - (96,625) (96,625) Total revenues 80,000 80,000 192,987 112,987 EXPENDITURES:

Current:

Community development 142,213 142,644 2,934,341 (2,791,697) Total expenditures 142,213 142,644 2,934,341 (2,791,697)

REVENUES OVER
(UNDER) EXPENDITURES (62,213) (62,644) (2,741,354) 2,904,684 OTHER FINANCING SOURCES (USES):

Transfers out - - - - Total other financing sources (uses) - - - - NET CHANGES IN FUND BALANCES (62,213)$ (62,644)$ (2,741,354) 2,904,684$ FUND BALANCES:

Beginning of year 7,071,861
End of year 4,330,507$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Low and Moderate Income Housing Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
155
DRAFT 11.30.2022 v2

137 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 531,409 $ 531,409 $ 177,002 $ (354,407) $ Investment income (loss) - - (2,025) (2,025) Total revenues 531,409 531,409 174,977 (356,432) EXPENDITURES:

Current:

Community development 863,654 $ 863,654 $ 198,376 $ 665,278 $ Total expenditures 863,654 863,654 198,376 665,278

REVENUES OVER
(UNDER) EXPENDITURES (332,245) (332,245) (23,399) (1,021,710) OTHER FINANCING SOURCES (USES):

Transfers out - - - - Total other financing sources (uses) - - - - NET CHANGES IN FUND BALANCES (332,245)$ (332,245)$ (23,399) (1,021,710)$ FUND BALANCES:

Beginning of year -
End of year (23,399)$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Permanent Local Housing Allocation Special Revenue Fund For the Year Ended June 30, 2022
Budgeted Amounts
156
DRAFT 11.30.2022 v2

138 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 2,626,215 $ 2,626,215 $ 2,186,200 $ (440,015) $ Investment income (loss) - - (18,204) (18,204) Total revenues 2,626,215 2,626,215 2,167,996 (458,219) EXPENDITURES:

Current:

Public works 1,747,500 1,747,500 1,747,500 - Total expenditures 1,747,500 1,747,500 1,747,500 -

REVENUES OVER
(UNDER) EXPENDITURES 878,715 878,715 420,496 (458,219) OTHER FINANCING SOURCES (USES):

Transfers out (1,480,000) (1,480,000) (18,165) 1,461,835 Total other financing sources (uses) (1,480,000) (1,480,000) (18,165) 1,461,835 NET CHANGES IN FUND BALANCES (601,285)$ (601,285)$ 402,331 1,003,616$ FUND BALANCES:

Beginning of year 678,505
End of year 1,080,836$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
157
DRAFT 11.30.2022 v2

139 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 2,043,788 $ 2,043,788 $ 2,089,730 $ 45,942 $ Investment income (loss) - - (67,768) (67,768) Total revenues 2,043,788 2,043,788 2,021,962 (21,826) OTHER FINANCING SOURCES (USES):

Transfers out (2,000,000) (2,000,000) (1,892,481) 107,519 Total other financing sources (uses) (2,000,000) (2,000,000) (1,892,481) 107,519 NET CHANGES IN FUND BALANCES 43,788$ 43,788$ 129,481 85,693$ FUND BALANCES:

Beginning of year 2,036,711
End of year 2,166,192$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Road Maintenance and Rehabilitation Special Revenue Fund For the Year Ended June 30, 2022
Budgeted Amounts
158
DRAFT 11.30.2022 v2

140 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 1,300,000 $ 1,300,000 $ 1,038,518 $ (261,482) $ Investment income (loss) - - (132,308) (132,308) Total revenues 1,300,000 1,300,000 906,210 (393,790) EXPENDITURES:

Current:

Community development 2,123,317 2,127,515 1,514,331 613,184 Total expenditures 2,123,317 2,127,515 1,514,331 613,184 NET CHANGES IN FUND BALANCES (823,317)$ (827,515) $ (608,121) (1,006,974) $ FUND BALANCES:

Beginning of year 5,213,024
End of year 4,604,903$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Advance Planning Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
159
DRAFT 11.30.2022 v2

141 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines, forfeitures and penalties 400,000 $ 400,000 $ 724,997 $ 324,997 $ Intergovernmental 214,000 214,000 122,000 (92,000) Charges for services 933,271 933,271 779,683 (153,588) Investment income (loss) - - (290,939) (290,939) Assessments and garbage collection 1,273,679 1,273,679 971,388 (302,291) Capital contributions 750,000 750,000 750,000 - Other revenues 82,000 82,000 563,721 481,721 Total revenues 3,652,950 3,652,950 3,620,850 (32,100) EXPENDITURES:

Current:

Public works 2,302,924 2,318,963 1,890,701 428,262 Total expenditures 2,302,924 2,318,963 1,890,701 428,262

REVENUES OVER
(UNDER) EXPENDITURES 1,350,026 1,333,987 1,730,149 (460,362) OTHER FINANCING SOURCES (USES):

Transfers out (750,000) (750,000) (16,911) 733,089 Total other financing sources (uses) (750,000) (750,000) (16,911) 733,089 NET CHANGES IN FUND BALANCES 600,026$ 583,987$ 1,713,238 272,727$ FUND BALANCES:

Beginning of year 10,464,847
End of year 12,178,085$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Solid Waste Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
160
DRAFT 11.30.2022 v2

142 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) - $ - $ (329,362)$ (329,362) $ Assessments and garbage collection 3,407,000 3,407,000 137,026 (3,269,974) Total revenues 3,407,000 3,407,000 (192,336) (3,599,336) EXPENDITURES:

Current:

Non-departmental - - - - Total expenditures 16,866 16,866 16,866 -

REVENUES OVER
(UNDER) EXPENDITURES 3,390,134 3,390,134 (209,202) (3,599,336) OTHER FINANCING SOURCES (USES):

Transfers out (4,400,000) (4,400,000) (224,513) 4,175,487 Total other financing sources (uses) (4,400,000) (4,400,000) (224,513) 4,175,487 NET CHANGES IN FUND BALANCES (1,009,866)$ (1,009,866)$ (433,715) 576,151$ FUND BALANCES:

Beginning of year 12,560,034
End of year 12,126,319$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Parks and Recreation Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
161
DRAFT 11.30.2022 v2

143 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) - $ - $ (20,681)$ (20,681) $ Impact fees 1,250,000 1,250,000 25,067 (1,224,933) Total revenues 1,250,000 1,250,000 4,386 (1,245,614) OTHER FINANCING SOURCES (USES):

Transfers out (50,000) (50,000) (590,325) (540,325) Total other financing sources (uses) (50,000) (50,000) (590,325) (540,325) NET CHANGES IN FUND BALANCES 1,200,000$ 1,200,000$ (585,939) (1,785,939)$ FUND BALANCES:

Beginning of year 843,355
End of year 257,416$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Traffic Impact Fee Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
162
DRAFT 11.30.2022 v2

144 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Licenses, building and other permits 50,000 $ 50,000 $ 132,980 $ 82,980 $ Investment income (loss) - - (125,504) (125,504) Total revenues 50,000 50,000 7,476 (42,524) EXPENDITURES:

Current:

Community development 5,141 5,141 4,005,141 (4,000,000) Non-departmental - - - - Total expenditures 5,141 5,141 4,005,141 (4,000,000)

REVENUES OVER
(UNDER) EXPENDITURES 44,859 44,859 (3,997,665) 3,957,476 OTHER FINANCING SOURCES (USES):

Transfers out - (40,000) - 40,000 Total other financing sources (uses) - (40,000) - 40,000 NET CHANGES IN FUND BALANCES 44,859$ 4,859$ (3,997,665) 3,997,476$ FUND BALANCES:

Beginning of year 7,157,183
End of year 3,159,518$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Commercial Linkage Fee Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
163
DRAFT 11.30.2022 v2

145 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) 15,000 $ 15,000 $ (82,426) $ (97,426) $ Assessments and garbage collection 600,000 600,000 600,000 - Total revenues 615,000 615,000 517,574 (97,426) EXPENDITURES:

Current:

Public works 95,749 95,964 72,943 23,021 Total expenditures 95,749 95,964 72,943 23,021 NET CHANGES IN FUND BALANCES 519,251$ 519,036$ 444,631 (120,447)$ FUND BALANCES:

Beginning of year 2,923,078
End of year 3,367,709$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Landfill Bonds Debt Service Fund
For the Year Ended June 30, 2022
Budgeted Amounts
164
DRAFT 11.30.2022 v2

146 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes 2,045,950 $ 2,045,950 $ 2,448,170 $ 402,220 $ Investment income (loss) 10,000 10,000 (135,902) (145,902) Total revenues 2,055,950 2,055,950 2,312,268 256,318 EXPENDITURES:

Debt service:

Principal 2,280,000 2,280,000 2,280,000 - Interest and fiscal charges 2,461,372 2,461,372 2,462,546 (1,174) Total expenditures 4,741,372 4,741,372 4,742,546 (1,174)

REVENUES OVER
(UNDER) EXPENDITURES (2,685,422) (2,685,422) (2,430,278) 257,492 OTHER FINANCING SOURCES (USES):

Transfers in 2,663,647 2,663,647 2,663,647 - Total other financing sources (uses) 2,663,647 2,663,647 2,663,647 - NET CHANGES IN FUND BALANCES (21,775)$ (21,775) $ 233,369 257,492 $ FUND BALANCES:

Beginning of year 5,700,789
End of year 5,934,158$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual General Obligation Bonds Debt Service Fund
For the Year Ended June 30, 2022
Budgeted Amounts
165
DRAFT 11.30.2022 v2

147 of 210

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Other taxes - $ - $ 650,331$ 650,331 $ Investment income (loss) 33,333 33,333 37 (33,296) Total revenues 33,333 33,333 650,368 617,035 EXPENDITURES:

Debt service:

Principal 445,000 445,000 444,700 300 Interest and fiscal charges 243,086 243,086 151,185 91,901 Total expenditures 688,086 688,086 595,885 92,201

REVENUES OVER
(UNDER) EXPENDITURES (654,753) (654,753) 54,483 524,834 OTHER FINANCING SOURCES (USES):

Transfers in 388,478 388,478 388,478 - Transfers out - - (1,234,490) (1,234,490) Total other financing sources (uses) 388,478 388,478 (846,012) (1,234,490) NET CHANGES IN FUND BALANCES (266,275)$ (266,275)$ (791,529) (709,656)$ FUND BALANCES:

Beginning of year (572,300)
End of year (1,363,829)$
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual 2% Hotel Tax Capital Projects Fund
For the Year Ended June 30, 2022
Budgeted Amounts
166
DRAFT 11.30.2022 v2

148 of 210

Internal Service Funds
Workers' Compensation Insurance Fund accounts for all workers' compensation self-insurance activities.

Dental Self-Insurance Fund accounts for the City's self-insurance activities related to the dental plan the City provides to its employees.

Benefits Fund accounts for charges to other funds and expenditures relating to employee benefits other than those accounted for in the Worker Compensation and Dental Self-Insurance Funds.

Comprehensive Liability Insurance Fund accounts for the general liability self-insurance transactions.

Vehicle and Equipment Replacement Fund accounts for rental charges to City departments and the replacement of vehicles and equipment.

Fleet and Building Maintenance Fund accounts for the charges to user departments and the expenses relating to the maintenance of City vehicles and buildings.
167
DRAFT 11.30.2022 v2

149 of 210

Workers' Comprehensive
Compensation Dental Liability
Insurance Self-Insurance Benefits Insurance
ASSETS
Current assets:

Cash and investments 16,940,256$ 933,307$ -$ 502,169$ Accounts receivable, net - - - - Due from other funds 110,898 - - - Prepaid items, inventory, and deposits 395,000 147,000 - 30,000 Total current assets 17,446,154 1,080,307 - 532,169 Noncurrent assets:

Capital assets:

Depreciable, net - - - - Total capital assets - - - - Total noncurrent assets - - - - Total assets 17,446,154 1,080,307 - 532,169

LIABILITIES
Current liabilities:

Accounts payable 109,649 1,078 47,336 177,506 Due to other funds - - 110,898 - Deposits payable 9,092 795 107,884 - Claims payable - due within one year 2,800,000 - - 500,000 Total current liabilities 2,918,741 1,873 266,118 677,506 Noncurrent liabilities:

Claims payable - due in more than one year 9,397,000 - - 1,372,000 Total noncurrent liabilities 9,397,000 - - 1,372,000 Total liabilities 12,315,741 1,873 266,118 2,049,506

NET POSITION
Investment in capital assets - - - - Unrestricted (deficit) 5,130,413 1,078,434 (266,118) (1,517,337) Total net position 5,130,413$ 1,078,434 $ (266,118) $ (1,517,337) $ City of San Mateo
Combining Statement of Net Position
All Internal Service Funds
For the Year Ended June 30, 2022
168
DRAFT 11.30.2022 v2

150 of 210

Vehicle and Fleet and
Equipment Building
Replacement Maintenance Total
ASSETS
Current assets:

Cash and investments 13,708,621 $ 923,748 $ 33,008,101 $ Accounts receivable, net - 8,095 8,095 Due from other funds - - 110,898 Prepaid items, inventory, and deposits - 32,174 604,174 Total current assets 13,708,621 964,017 33,731,268 Noncurrent assets:

Capital assets:

Depreciable, net 5,550,896 - 5,550,896 Total capital assets 5,550,896 - 5,550,896 Total noncurrent assets 5,550,896 - 5,550,896 Total assets 19,259,517 964,017 39,282,164

LIABILITIES
Current liabilities:

Accounts payable 103,019 209,145 647,733 Due to other funds - - 110,898 Deposits payable - - 117,771 Claims payable - due within one year - - 3,300,000 Total current liabilities 103,019 209,145 4,176,402 Noncurrent liabilities:

Claims payable - due in more than one year - - 10,769,000 Total noncurrent liabilities - - 10,769,000 Total liabilities 103,019 209,145 14,945,402

NET POSITION
Investment in capital assets 5,550,896 - 5,550,896 Unrestricted (deficit) 13,605,602 754,872 18,785,866 Total net position 19,156,498$ 754,872 $ 24,336,762 $ City of San Mateo
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2022
169
DRAFT 11.30.2022 v2

151 of 210

Workers' Comprehensive
Compensation Dental Liability
Insurance Self-Insurance Benefits Insurance
OPERATING REVENUES:

Charges for services 4,501,344$ 801,735$ 39,439,370$ 1,610,000$ Other - - - 32,784 Total operating revenues 4,501,344 801,735 39,439,370 1,642,784 OPERATING EXPENSES:

Costs of sales and services (1,651,938) 514,464 10,540,349 3,599,582 Administration 409,487 - 29,281,513 135,497 Depreciation and amortization - - - - Total operating expenses (1,242,451) 514,464 39,821,862 3,735,079 OPERATING INCOME (LOSS) 5,743,795 287,271 (382,492) (2,092,295) NONOPERATING REVENUES (EXPENSES):

Investment income (430,248) - - (13,628) Gain (loss) on sale of capital assets - - - - Total nonoperating revenues (expenses) (430,248) - - (13,628) INCOME (LOSS) BEFORE TRANSFERS 5,313,547 287,271 (382,492) (2,105,923) TRANSFERS:

Transfers in - - - - Transfers out - - - - Total transfers - - - - Changes in net position 5,313,547 287,271 (382,492) (2,105,923) NET POSITION:

Beginning of year (183,134) 791,163 116,374 588,586 End of year 5,130,413$ 1,078,434$
(266,118)$ (1,517,337)$
City of San Mateo
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the Year Ended June 30, 2022
170
DRAFT 11.30.2022 v2

152 of 210

Vehicle & Fleet &
Equipment Building
Replacement Maintenance Total
OPERATING REVENUES:

Charges for services 1,637,512$ 5,406,903$ 53,396,864$ Other - - 32,784 Total operating revenues 1,637,512 5,406,903 53,429,648 OPERATING EXPENSES:

Costs of sales and services 492,362 3,385,244 16,880,063 Administration - 1,687,297 31,513,794 Depreciation and amortization 1,274,482 - 1,274,482 Total operating expenses 1,766,844 5,072,541 49,668,339 OPERATING INCOME (LOSS) (129,332) 334,362 3,761,309 NONOPERATING REVENUES (EXPENSES):

Investment income (379,355) - (823,231) Gain (loss) on sale of capital assets 42,999 - 42,999 Total nonoperating revenues (expenses) (336,356) - (780,232) INCOME (LOSS) BEFORE TRANSFERS (465,688) 334,362 2,981,077 TRANSFERS:

Transfers in 410,000 - 410,000 Transfers out (828,987) - (828,987) Total transfers (418,987) - (418,987) Changes in net position (884,675) 334,362 2,562,090 NET POSITION:

Beginning of year 20,041,173 420,510 21,774,672 End of year 19,156,498$ 754,872$ 24,336,762$ City of San Mateo
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) All Internal Service Funds
For the Year Ended June 30, 2022
171
DRAFT 11.30.2022 v2

153 of 210

Workers' Comprehensive
Compensation Dental Liability
Insurance Self-Insurance Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 4,501,344$ 801,735$ 40,169,373$ 1,610,000$ Cash payments to suppliers for goods and services (4,214,469) (49,156) (29,291,968) (46,191) Cash payments to employees for services 1,651,938 (514,464) (10,540,349) (3,599,582) Cash received from others - - - 788,784 Net cash provided by (used in) operating activities 1,938,813 238,115 337,056 (1,246,989)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund borrowing (lending) 337,056 - - - Repayment of interfund borrowing (lending) - - (337,056) - Transfers in - - - - Transfers out - - - - Net cash provided by (used in)
noncapital financing activities 337,056 - (337,056) -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets - - - - Acquisition of capital assets, net - - - - Net cash (used in) capital and
related financing activities - - - - CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received (430,248) - - (13,628) Net cash provided by investing activities (430,248) - - (13,628) Net change in cash and cash equivalents 1,845,621 238,115 - (1,260,617) CASH AND CASH EQUIVALENTS:

Beginning of year 15,094,635 695,192 - 1,762,786 End of year
16,940,256$ 933,307$ -$ 502,169$ (Continued)
City of San Mateo
Combining Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2022
172
DRAFT 11.30.2022 v2

154 of 210

Workers' Comprehensive
Compensation Dental Liability
Insurance Self-Insurance Benefits Insurance

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

Operating income (loss) 5,743,795$ 287,271$ (382,492)$ (2,092,295)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation - - - - Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net - - 730,003 - Prepaid items, inventory, and deposits - - - - Accounts payable (65,982) (49,156) (28,956) 89,306 Retention payable - - - - Accrued payroll - - - - Deposits payable - - 18,501 - Unearned revenue - - - - Compensated absences - - - - Claims payable (3,739,000) - - 756,000 Total adjustments (3,804,982) (49,156) 719,548 845,306 Net cash provided by (used in) operating activities 1,938,813$ 238,115$ 337,056$ (1,246,989)$

(Continued)
All Internal Service Funds
For the Year Ended June 30, 2022
City of San Mateo
Combining Statement of Cash Flows (Continued)
173
DRAFT 11.30.2022 v2

155 of 210

Vehicle & Fleet &
Equipment Building
Replacement Maintenance Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 1,637,512 $ 5,398,903 $ 54,118,867 $ Cash payments to suppliers for goods and services 103,019 (1,718,609) (35,217,374) Cash payments to employees for services (492,362) (3,385,244) (16,880,063) Cash received from others - - 788,784 Net cash provided by (used in) operating activities 1,248,169 295,050 2,810,214

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund borrowing (lending) - - 337,056 Repayment of interfund borrowing (lending) - - (337,056) Transfers in 410,000 - 410,000 Transfers out (828,987) - (828,987) Net cash provided by
noncapital financing activities (418,987) - (418,987)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 42,999 - 42,999 Acquisition of capital assets, net (552,733) - (552,733) Net cash (used in) capital and
related financing activities (509,734) - (509,734) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received (379,355) - (823,231) Net cash provided by investing activities (379,355) - (823,231) Net change in cash and cash equivalents (59,907) 295,050 1,058,262 CASH AND CASH EQUIVALENTS:

Beginning of year 13,768,528 628,698 31,949,839 End of year 13,708,621$ 923,748$ 33,008,101$

(Continued)
City of San Mateo
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2022
174
DRAFT 11.30.2022 v2

156 of 210

Vehicle & Fleet &
Equipment Building
Replacement Maintenance Total

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

Operating income (loss) (129,332) $ 334,362 $ 3,761,309 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 1,274,482 - 1,274,482 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net - (8,000) 722,003 Prepaid items, inventory, and deposits - - - Accounts payable 103,019 (31,312) 16,919 Retention payable - - - Accrued payroll - - - Deposits payable - - 18,501 Unearned revenue - - - Compensated absences - - - Claims payable - - (2,983,000) Total adjustments 1,377,501 (39,312) (951,095) Net cash provided by (used in) operating activities 1,248,169$ 295,050$ 2,810,214$

(Concluded)
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2022
City of San Mateo
175
DRAFT 11.30.2022 v2

157 of 210

This page intentionally left blank.
176
DRAFT 11.30.2022 v2

158 of 210

Fiduciary Funds - Custodial Funds
San Mateo Consolidated Fire Department Custodial Fund, accounts for assets that the City is holding for the San Mateo Consolidated Fire Department.

CFD 2008-1 Custodial Fund , accounts for assets that the City is holding for the Community Facilities District No. 2008-01 for which the City is acting as an agent.

Other Custodial Fund , accounts for assets that the City is holding for other entities for which the City is acting as an agent.
177
DRAFT 11.30.2022 v2

159 of 210

San Mateo
Consolidated
Fire Department CFD 2008-1 Other Total
ASSETS
Cash and investments 97,466 $ 37,819 $ 53,186 $ 188,471 $ Restricted cash and investments - 88,946,410 - 88,946,410 Total assets 97,466 88,984,229 53,186 89,134,881

LIABILITIES
Accounts payable 97,466 - 53,186 150,652 Total liabilities 97,466 - 53,186 150,652

NET POSITION
Restricted for:

Individuals, organizations, and other governments - 88,984,229 - 88,984,229 Total Net Position -$ 88,984,229$ - $ 88,984,229$ City of San Mateo
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2022
182
DRAFT 11.30.2022 v2

160 of 210

San Mateo
Consolidated
Fire Department CFD 2008-1 Other Total
ADDITIONS:

Fee collections for other governments 311,148 $ - $ 210,121$ 521,269 $ Special Assessments for other governments - 5,630,130 - 5,630,130 Investment income - 7,310 - 7,310 Proceeds from conduit debt issuance - 78,183,627 - 78,183,627 Total additions 311,148 83,821,067 210,121 84,342,336 DEDUCTIONS:

Administration - 15,371 99,114 114,485 Payments on conduit bonds - principal - 835,000 - 835,000 Payments on conduit bonds - interest - 4,498,226 - 4,498,226 Project payments - 1,363,033 - 1,363,033 Payments to other governments 311,148 - 111,007 422,155 Other - 1,751,211 - 1,751,211 Total deductions 311,148 8,462,841 210,121 8,984,110 Changes in net position - 75,358,226 - 75,358,226 NET POSITION:

Beginning of year - 13,626,003 - 13,626,003 End of year - $ 88,984,229$ - $ 88,984,229$ City of San Mateo
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2022
183
DRAFT 11.30.2022 v2

161 of 210

This page intentionally left blank.
184
DRAFT 11.30.2022 v2

162 of 210

Fiduciary Funds - Private Purpose Trust Funds
RDA Obligation Retirement Fund (RORF), established in accordance with AB 1X 26, accounts for Redevelopment Property Tax Trust Fund amounts received after January 31, 2012 to pay for Recognized Obligation Payment Schedule (ROPS) items.

Successor Agency to RDA Merged Area Fund , a sub-fund of the RORF, accounts for assets and liabilities of the former RDA merged project area which were transferred to the Successor Agency upon RDA dissolution to be used for ROPS payments or redistributed to taxing entities.

Successor Agency to RDA Housing Fund , a sub-fund of the RORF, accounts for assets and liabilities of the former RDA housing set aside transferred to the Successor Agency upon RDA dissolution to be used for ROPS payments or redistributed to taxing entities.
185
DRAFT 11.30.2022 v2

163 of 210

This page intentionally left blank.
186
DRAFT 11.30.2022 v2

164 of 210

RDA Successor Agency Successor Agency
Retirement to RDA Merged to RDA
Obligation Area Housing Total
ASSETS
Cash and investments 4,990,852 $ - $ - $ 4,990,852$ Restricted cash and investments - - - - Interest receivable - - - - Taxes receivable - - - - Total assets 4,990,852 - - 4,990,852

DEFERRED OUTFLOWS

OF RESOURCES
Deferred loss on refunding - 420,532 - 420,532 Total deferred outflows of resources - 420,532 - 420,532

LIABILITIES
Accounts payable - - - - Interest payable - 854,396 11,294 865,690 Long-term debt - due within one year - 3,205,000 695,000 3,900,000 Long-term debt - due in more than one year - 42,645,627 - 42,645,627 Total liabilities - 46,705,023 706,294 47,411,317

DEFERRED INFLOWS

OF RESOURCES
Deferred gain on refunding - 43,377 - 43,377 Total deferred inflows of resources - 43,377 - 43,377

NET POSITION
Held in trust for dissolution of RDA 4,990,852 (46,327,868) (706,294) (42,043,310) Total Net Position 4,990,852$ (46,327,868) $ (706,294) $ (42,043,310)$ City of San Mateo
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Private Purpose Trust Funds
For the Year Ended June 30, 2022
187
DRAFT 11.30.2022 v2

165 of 210

RDA Successor Agency Successor Agency
Retirement to RDA Merged to RDA
Obligation Area Housing Total
ADDITIONS:

Investment income 40 $ - $ - $ 40 $ RDA property tax trust fund distribution 82,100 4,717,610 1,195,000 5,994,710 Total additions 82,140 4,717,610 1,195,000 5,994,750 DEDUCTIONS:

Administration - 10,000 10,000 20,000 Interest expense - 1,641,842 (17,775) 1,624,067 Total deductions - 1,651,842 (7,775) 1,644,067 Changes in net position 82,140 3,065,768 1,202,775 4,350,683 NET POSITION:

Beginning of year 4,908,712 (49,393,636) (1,909,069) (46,393,993) End of year 4,990,852$ (46,327,868) $ (706,294) $ (42,043,310)$ City of San Mateo
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Private Purpose Trust Funds
For the Year Ended June 30, 2022
188
DRAFT 11.30.2022 v2

166 of 210

Schedules of Assessments and Investment Fees and Related Expenditures South Bayfront Levee Improvement Project accounts for the revenues and expenditures of assessments imposed to finance the South Bayfront Levee Improvemetn Project.

South Trunk area sewer improvements. The fee is imposed on all development and redevelopment served by the South Trunk line.

Child Care Development Impact Fee accounts for revenues and expenditures related to the child care development fee to fund child care facilities necessitated by commercial development.

Tree Impact Fee accounts for revenues and expenditures related to the tree replacement fee established on all development requiring approval of planning application, except for single-family dwelling design review applications, for the removal of existing trees on development sites.

Cable Television Impact Fee accounts for revenues and expenditures related to the cable television impact fee to fund public access community television.
189
DRAFT 11.30.2022 v2

167 of 210

This page intentionally left blank.
190
DRAFT 11.30.2022 v2

168 of 210

South
Bayfront Total
Levee Sout h Child Care Cable Assessment s
Improvement Trunk Sewer Development Tree Television and Impac t Project Impact Fee Impact Fee Impact Fee Impact Fee Fees REVENUES:

Assessments 539,889 $ 49,477 $ - $ 96,054$ 266,878 $ 952,298 $ Interest income - - 15,991 8,232 8,093 32,316 Total revenues 539,889 49,477 15,991 104,286 274,971 984,614 EXPENDITURES:

Capital outlay 33,682 641,421 - 9,339 55,369 739,811 Debt service 398,389 - - - - 398,389 Total expenditures 432,071 641,421 - 9,339 55,369 1,138,200 BALANCES:

Beginning of year 2,053,606 591,944 2,129,655 1,067,919 1,039,327 6,882,451 End of year 2,161,424 $ - $ 2,145,646$ 1,162,866 $ 1,258,929 $ 6,728,865 $ City of San Mateo
General Capital Projects Fund
Schedule of Assessments and Impact Fees and Related Expenditures For the Year Ended June 30, 2022
Note: Schedule of revenues and expenditures of Parks and Recreation Tax and In-Lieu Fee and Traffic Impact Fee are presented in Non-Major Governmental Funds Section of Supplementary Information.
191
DRAFT 11.30.2022 v2

169 of 210

This page intentionally left blank.
192
DRAFT 11.30.2022 v2

170 of 210

STATISTICAL SECTION
193
DRAFT 11.30.2022 v2

171 of 210

This page intentionally left blank.
194
DRAFT 11.30.2022 v2

172 of 210

Contents Page
Financial Trends 196
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity 208
These schedules contain information to help the reader assess the City's most significant local revenues source: property tax
Debt Capacity 214
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.

Demographic and Economic Information 221
These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place.

Operating Information 223
These schedules contain service and infrastructure data to help the reader to understand how the information in the City's financial reports relates to the services the city provides and the activities it performs.

This part of the City of San Mateo's Annual Comprehensive Financial Reports 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 condition.

STATISTICAL SECTION (Unaudited)
195
DRAFT 11.30.2022 v2

173 of 210

2013 2014 2015 2016 2017
Governmental Activities
Net investment in capital assets 333,716,045 $ 338,446,921 $ 338,597,493 $ 348,551,145 $ 361,295,211 $ Restricted 80,544,476 82,599,049 35,940,430 42,628,946 43,004,559 Unrestricted 64,260,546 83,713,423 (56,568,094) (25,485,083) (16,647,454) Total Governmental Activities Net Position 478,521,067$ 504,759,393 $ 317,969,829 $ 365,695,008 $ 387,652,316 $ Business-Type Activities
Net investment in capital assets 70,235,094 $ 76,417,915 $ 78,438,576 $ 83,893,024 $ 112,410,305 $ Restricted 9,139,202 5,982,278 11,056,422 9,457,948 17,976,147 Unrestricted 13,889,683 17,701,761 10,218,009 20,791,916 (7,096,918) Total Business-Type Activities Net Position 93,263,979$ 100,101,954 $ 99,713,007 $ 114,142,888 $ 123,289,534 $ Primary Government
Net investment in capital assets 403,951,139 $ 414,864,836 $ 417,036,069 $ 432,444,169 $ 473,705,516 $ Restricted 89,683,678 88,581,327 46,996,852 52,086,894 60,980,706 Unrestricted 78,150,229 101,415,184 (46,350,085) (4,693,167) (23,744,372) Total Primary Government Net Position 571,785,046$ 604,861,347 $ 417,682,836 $ 479,837,896 $ 510,941,850 $ Notes:
(1) Significant variance in restricted and unrestricted net position was due to implementation of GASB 65, 68 and 71 in FY2015 (2) Unrestricted net position included adjustment to reflect implementation of GASB 75 in FY2018 Source: City of San Mateo Annual Comprehensive Financial Reports

FISCAL YEAR
City of San Mateo
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(1)(1)
196
DRAFT 11.30.2022 v2

174 of 210

2018 2019 2020 2021 2022
Governmental Activities
Net investment in capital assets 373,263,037 $ 374,808,638 $ 380,800,232 $ 392,070,528 $ 397,780,546 $ Restricted 56,180,410 56,993,128 58,615,106 38,577,326 45,323,758 Unrestricted (27,694,719) (16,582,840) (22,039,326) (11,392,141) 6,234,558 Total Governmental Activities Net Position 401,748,728$ 415,218,926 $ 417,376,012 $ 419,255,713 $ 449,338,862 $ Business-Type Activities
Net investment in capital assets 136,901,535 $ 137,297,898 $ 154,095,718 $ 168,133,572 $ 135,235,423 $ Restricted 3,019,163 1,127,518 1,143,604 1,143,852 33,375,069 Unrestricted (2,674,687) 24,223,141 39,117,768 58,834,359 109,975,918 Total Business-Type Activities Net Position 137,246,011$ 162,648,557 $ 194,357,090 $ 228,111,783 $ 278,586,410 $ Primary Government
Net investment in capital assets 510,164,572 $ 512,106,536 $ 534,895,950 $ 560,204,100 $ 533,015,969 $ Restricted 59,199,573 58,120,646 59,758,710 39,721,178 78,698,827 Unrestricted (30,369,406) 7,640,301 17,078,442 47,442,218 116,210,476 Total Primary Government Net Position 538,994,739$ 577,867,483 $ 611,733,102 $ 647,367,496 $ 727,925,272 $ Notes:
(1) Significant variance in restricted and unrestricted net position was due to implementation of GASB 65, 68 and 71 in FY2015 (2) Unrestricted net position included adjustment to reflect implementation of GASB 75 in FY2018 Source: City of San Mateo Annual Comprehensive Financial Reports

FISCAL YEAR
City of San Mateo
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
(2)(2)
197
DRAFT 11.30.2022 v2

175 of 210

2013 2014 2015 2016 2017
Expenses
Governmental activities:

General government 10,130,843 $ 11,250,111 $ 13,531,819 $ 13,408,222 $ 15,288,834 $ Community development 5,365,548 6,219,895 11,520,058 8,615,056 9,218,215 Public safety 50,037,399 52,241,250 54,499,943 56,518,491 66,098,015 Public works 16,749,537 18,936,651 17,572,481 19,194,348 19,454,397 Parks and recreation 13,737,283 14,485,575 14,604,719 14,715,076 17,688,663 Golf - - - - - Library 6,464,282 6,963,743 7,456,042 7,481,649 8,640,943 Interest and fiscal charges 2,105,784 1,712,704 1,687,938 1,563,149 1,603,120 Total governmental activities expenses 104,590,676 111,809,929 120,873,000 121,495,991 137,992,187 Business-type activities:

Sewer 23,210,165 22,208,673 25,394,787 29,446,279 27,650,895 Golf 2,512,817 2,719,709 2,599,156 2,925,638 2,699,895 Total business-type activities expenses 25,722,982 24,928,382 27,993,943 32,371,917 30,350,790 Total primary government expenses 130,313,658 $ 136,738,311 $ 148,866,943 $ 153,867,908 $ 168,342,977 $ Program Revenues
Governmental activities:

Charges for Services:

General government 4,005,058 $ 3,796,035 $ 7,746,426 $ 8,864,516 $ 4,460,496 $ Community development 9,332,116 10,824,597 11,841,340 13,040,363 15,504,626 Public safety 4,528,802 5,032,066 4,748,609 4,963,005 5,460,041 Public works
5,604,208 5,798,006 3,380,143 3,204,712 7,078,959 Parks and recreation 3,729,797 3,640,528 3,917,392 4,026,981 5,733,587 Golf - - - - - Library 379,807 396,619 366,424 376,099 384,442 Operating Grants and Contributions 5,712,470 4,621,620 4,659,218 4,920,003 4,855,791 Capital Grants and Contributions 22,068,697 12,304,741 5,932,115 17,519,113 7,404,767 Total governmental activities program revenues 55,360,955 46,414,212 42,591,667 56,914,792 50,882,709 Business-type activities:

Charges for Services:

Sewer 28,712,336 28,381,469 32,202,568 31,349,390 31,790,037 Golf 2,450,940 2,470,030 2,179,638 2,259,273 2,155,822 Capital Grants and Contributions 897,868 1,269,568 1,418,940 9,648,484 4,559,627 Total business-type activities program revenues 32,061,144 32,121,067 35,801,146 43,257,147 38,505,486 Total primary government program revenues 87,422,099$ 78,535,279$ 78,392,813$ 100,171,939$ 89,388,195$ Net (Expense)/Revenue
Governmental activities (49,229,721)$ (65,395,717)$ (78,281,333)$ (64,581,199)$ (87,109,478)$ Business-type activities 6,338,162 7,192,685 7,807,203 10,885,230 8,154,696 Total primary government net expense (42,891,559)$ (58,203,032)$ (70,474,130)$ (53,695,969)$ (78,954,782)$ Source: City of San Mateo Annual Comprehensive Financial Reports City of San Mateo
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)

FISCAL YEAR
198
DRAFT 11.30.2022 v2

176 of 210

2018 2019 2020 2021 2022
Expenses
Governmental activities:

General government 16,253,149 $ 22,520,951 $ 24,844,817 $ 22,566,708 $ 23,440,199 $ Community development 8,968,176 10,689,333 11,079,458 11,362,295 20,402,608 Public safety 78,040,802 72,388,649 84,968,332 88,274,410 66,994,862 Public works 22,900,784 25,294,822 26,353,672 22,560,152 21,712,677 Parks and recreation 17,723,370 18,589,445 18,827,857 17,581,661 16,514,081 Golf - 2,413,326 2,363,389 2,406,028 2,368,719 Library 8,409,588 9,088,444 9,546,338 8,797,338 8,678,548 Interest and fiscal charges 1,282,632 1,545,181 1,967,739 2,674,930 2,447,923 Total governmental activities expenses 153,578,501 162,530,151 179,951,602 176,223,522 162,559,617 Business-type activities:

Sewer 28,541,139 30,979,524 39,159,040 40,969,271 41,868,215 Golf 3,119,828 - - - - Total business-type activities expenses 31,660,967 30,979,524 39,159,040 40,969,271 41,868,215 Total primary government expenses 185,239,468 $ 193,509,675 $ 219,110,642 $ 217,192,793 $ 204,427,832 $ Program Revenues
Governmental activities:

Charges for Services:

General government 4,761,038 $ 4,850,552 $ 4,196,601 $ 6,305,379 $ 7,754,336 $ Community development 18,647,276 11,962,685 11,367,968 11,277,683 10,420,500 Public safety 5,859,462 4,873,368 6,334,734 2,402,026 2,179,473 Public works
8,816,371 7,908,636 10,140,356 7,117,981 8,860,490 Parks and recreation 4,416,286 4,427,073 3,158,517 1,010,881 2,921,700 Golf - 2,169,365 2,206,781 3,129,139 3,529,967 Library 425,676 418,247 395,001 270,043 314,628 Operating Grants and Contributions 6,527,822 7,091,483 7,613,730 19,005,126 16,397,540 Capital Grants and Contributions 12,254,621 11,235,278 10,814,961 9,354,286 9,085,257 Total governmental activities program revenues 61,708,552 54,936,687 56,228,649 59,872,544 61,463,891 Business-type activities:

Charges for Services:

Sewer 41,737,548 51,981,922 58,741,767 67,962,290 71,491,119 Golf 2,361,164 - - - - Capital Grants and Contributions 2,628,892 1,231,712 7,290,894 5,931,349 21,355,870 Total business-type activities program revenues 46,727,604 53,213,634 66,032,661 73,893,639 92,846,989 Total primary government program revenues 108,436,156$ 108,150,321$ 122,261,310$ 133,766,183$ 154,310,880$ Net (Expense)/Revenue
Governmental activities (91,869,949)$ (107,593,464)$ (123,722,953)$ (116,350,978)$ (101,095,726)$ Business-type activities 15,066,637 22,234,110 26,873,621 32,924,368 50,978,774 Total primary government net expense (76,803,312)$ (85,359,354)$ (96,849,332)$ (83,426,610)$ (50,116,952)$ Source: City of San Mateo Annual Comprehensive Financial Reports City of San Mateo
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)

FISCAL YEAR
199
DRAFT 11.30.2022 v2

177 of 210

2013 2014 2015 2016 2017
General Revenues and Other Changes in Net Position
Government activities:

Taxes
Property taxes 38,179,530 $ 42,485,569 $ 45,514,243 $ 49,821,722 $ 52,989,559 $ Sales and use tax 23,822,654 23,621,580 26,406,209 27,458,762 26,001,431 Property transfer tax 6,307,133 9,476,087 10,636,846 9,894,291 12,179,016 Other taxes 11,519,884 12,582,033 13,764,540 14,503,661 14,536,828 Franchise fee 2,858,607 2,967,823 3,049,847 3,143,082 3,142,369 Motor vehicle taxes 57,889 68,688 61,024 416,222 55,990 Investment earnings 24,002 1,430,926 1,167,612 2,469,425 978,899 Other - GASB 68 Adjustment - - - 344,425 - Other revenues - - - - 32,694 Transfers - - (2,501,852) (3,020,196) (850,000) - - - 7,274,984 - - - - - - Total Governmental activities: 82,769,699 92,632,706 98,098,469 112,306,378 109,066,786 Business-type activities:

Investment earnings 68,856 324,021 250,398 524,455 141,950 Loss on disposal of capital assets (7,123) - - - - Miscellaneous revenues - - - - - Transfers - - 2,501,852 3,020,196 850,000 Total business-type activities 61,733 324,021 2,752,250 3,544,651 991,950 Total primary government 82,831,432$ 92,956,727$ 100,850,719$ 115,851,029$ 110,058,736$ Change in Net Position
Governmental activities 33,539,978$ 26,936,988$ 19,817,136$ 47,725,179$ 21,957,308$ Business-type activities 6,399,895 7,516,706 10,559,453 14,429,881 9,146,646 Total primary government 39,939,873$ 34,453,694$ 30,376,589$ 62,155,060$ 31,103,954$ Source: City of San Mateo Annual Comprehensive Financial Reports Last Ten Fiscal Years
(accrual basis of accounting)
Special Item: Transfer of fire activities
Special Item: Transfer of properties from
Successor Agency

FISCAL YEAR
City of San Mateo
Changes in Net Position
200
DRAFT 11.30.2022 v2

178 of 210

2018 2019 2020 2021 2022
General Revenues and Other Changes in Net Position
Government activities:

Taxes
Property taxes 58,137,331 $ 63,899,034 $ 67,106,048 $ 66,631,563 $ 74,796,572 $ Sales and use tax 26,313,958 28,606,235 26,958,595 27,948,874 33,408,980 Property transfer tax 11,778,074 13,918,129 9,137,370 11,783,952 14,344,715 Other taxes 14,777,396 14,947,968 11,173,135 7,439,757 11,445,378 Franchise fee 3,208,096 3,134,906 3,170,550 3,033,639 3,117,140 Motor vehicle taxes 64,442 - - - - Investment earnings 1,521,257 7,180,752 7,259,659 488,757 (6,317,294) Other - GASB 68 Adjustment - - - - - Other revenues 66,005 42,081 64,312 904,137 383,384 Transfers (525,000) (1,788,676) - - - - - - - - - (8,876,767) - - - Total Governmental activities: 115,341,559 121,063,662 124,869,669 118,230,679 131,178,875 Business-type activities:

Investment earnings 189,713 1,379,769 5,845,282 851,242 (602,477) Loss on disposal of capital assets - - - (22,292) 98,330 Miscellaneous revenues - - - 1,375 - Transfers 525,000 1,788,676 - - - Total business-type activities 714,713 3,168,445 5,845,282 830,325 (504,147) Total primary government 116,056,272$ 124,232,107$ 130,714,951$ 119,061,004$ 130,674,728$ Change in Net Position
Governmental activities 23,471,610$ 13,470,198$ 1,146,716$ 1,879,701$ 30,083,149$ Business-type activities 15,781,350 25,402,555 32,718,903 33,754,693 50,474,627 Total primary government 39,252,960$ 38,872,753$ 33,865,619$ 35,634,394$ 80,557,776$ Source: City of San Mateo Annual Comprehensive Financial Reports Special Item: Transfer of properties from
Successor Agency
Special Item: Transfer of fire activities
City of San Mateo
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)

FISCAL YEAR
201
DRAFT 11.30.2022 v2

179 of 210

This page intentionally left blank.
202
DRAFT 11.30.2022 v2

180 of 210

Property
Fiscal Property Sales Transfer Franchise Other
Year Tax Tax Tax Fee Taxes Total
2013 38,179,530$ 23,822,654 $ 6,307,133 $ 2,858,607 $ 11,577,773 $ 82,745,697 $ 2014 42,485,569 23,621,580 9,476,087 2,967,823 12,650,721 91,201,780 2015 45,514,243 26,406,209 10,636,846 3,049,847 13,825,564 99,432,709 2016 49,821,722 27,458,762 9,894,291 3,143,082 14,919,883 105,237,740 2017 52,989,559 26,001,431 12,179,016 3,142,369 14,592,818 108,905,193 2018 58,137,331 26,313,958 11,778,074 3,208,096 14,841,838 114,279,297 2019 63,899,034 28,606,235 13,918,129 3,134,906 14,947,968 124,506,272 2020 67,106,048 26,958,595 9,137,370 3,170,550 11,173,135 117,545,698 2021 66,631,563 27,948,874 11,783,952 3,033,639 7,439,757 116,837,785 2022 74,796,572 33,408,980 14,344,715 3,117,140 11,445,378 137,112,785 Source: City of San Mateo Annual Comprehensive Financial Reports (accrual basis of accounting)
Last Ten Fiscal Years
Governmental Activities Tax Revenues By Source
City of San Mateo
203
DRAFT 11.30.2022 v2

181 of 210

2013 2014 2015 2016 2017
General Fund
Nonspendable fund balance 137,314 $ 165,313 $ 133,030 $ 93,968 $ 146,668 $ Restricted fund balance - - - - - Committed fund balance - - - - - Assigned fund balance 1,521,652 1,849,458 696,064 653,902 1,151,152 Unassigned fund balance 23,797,373 34,083,800 46,814,928 57,850,140 65,807,692 Total General Fund 25,456,339 $ 36,098,571 $ 47,644,022 $ 58,598,010 $ 67,105,512 $ All Other Governmental Funds
Nonspendable fund balance - $ - $ - $ - $ - $ Restricted fund balance 30,314,487 32,452,933 36,477,074 42,628,946 42,468,316 Committed fund balance 32,304,156 41,759,610 51,111,814 63,490,793 66,261,696 Assigned fund balance - - - - - Unassigned fund balance - (3,999) - - - Total all other Governmental Funds 62,618,643$ 74,208,544 $ 87,588,888 $ 106,119,739 $ 108,730,012 $

Source: City of San Mateo Annual Comprehensive Financial Reports

FISCAL YEAR
City of San Mateo
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
204
DRAFT 11.30.2022 v2

182 of 210

2018 2019 2020 2021 2022
General Fund
Nonspendable fund balance 1,365,781 $ 1,138,335 $ 801,607 $ 329,193 $ 357,245 $ Restricted fund balance - - - - - Committed fund balance 1,310,590 2,382,262 1,370,873 1,370,873 16,294,331 Assigned fund balance 983,063 708,521 670,609 - 1,097,978 Unassigned fund balance 71,844,796 83,958,171 82,719,189 90,258,189 93,702,456 Total General Fund 75,504,230 $ 88,187,289 $ 85,562,278 $ 91,958,255 $ 111,452,010 $ All Other Governmental Funds
Nonspendable fund balance 4,206 $ - $ - $ - $ 9,000$ Restricted fund balance 54,997,971 55,140,874 107,881,837 71,611,963 77,144,719 Committed fund balance 66,085,830 70,357,550 75,420,851 93,093,835 65,881,489 Assigned fund balance - - - - - Unassigned fund balance - - - (586,982) (1,401,910) Total all other Governmental Funds 121,088,007$ 125,498,424 $ 183,302,688 $ 164,118,816 $ 141,633,298 $

FISCAL YEAR
Source: City of San Mateo Annual Comprehensive Financial Reports City of San Mateo
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
205
DRAFT 11.30.2022 v2

183 of 210

2013 2014 2015 2016 2017
Revenues:

Property taxes 38,179,530 $ 42,485,569 $ 45,514,243 $ 49,821,722 $ 52,989,555 $ Sales taxes 23,822,654 23,621,580 26,406,209 27,458,762 26,001,428 Other taxes 20,736,014 25,084,632 27,492,257 27,947,256 29,904,204 Licenses, building and other permits 8,814,956 10,208,410 10,993,854 12,481,519 13,986,765 Fines, forfeitures and Penalties 1,990,067 1,828,124 1,797,820 1,608,517 2,347,508 Intergovernmental Revenues 9,812,480 10,422,872 9,000,823 10,139,448 10,514,086 Charges for services 9,199,159 9,426,652 9,822,219 11,642,713 10,994,505 Investment Earnings 46,163 1,121,679 939,463 2,016,000 436,583 Indirect and in-lieu fees - - - - - Assessment and Garbage collection surcharge 6,816,900 4,586,404 3,128,070 8,000,287 2,405,534 Parking meter and lease revenue 2,338,849 2,653,178 2,722,471 2,881,193 3,113,739 Impact fees 2,289,600 2,552,388 3,260,222 4,274,248 3,747,065 Capital contributions - - - - - Other Revenues 2,634,474 2,692,908 2,402,206 3,438,927 3,751,388 Total Revenues 126,680,846 136,684,396 143,479,857 161,710,592 160,192,360 Expenditures:

General Government 9,136,330 9,947,383 12,563,127 13,389,976 11,823,438 Community development 5,177,198 6,226,200 7,304,546 7,283,445 8,382,090
Public Safety 48,458,630 49,554,095 53,016,349 58,605,898 63,623,621 Public Works 7,699,391 7,102,703 6,103,576 7,128,676 8,585,107 Parks and recreation 12,178,049 12,298,322 12,759,601 13,190,936 14,666,422 Golf - - - - - Library 4,798,978 5,160,200 5,744,931 6,099,700 6,499,489 Non-departmental 1,280,000 1,280,000 1,280,000 1,250,000 2,891,155 Capital Outlay 11,104,728 19,524,506 18,045,935 20,745,215 28,829,906 Debt Service
Principal 1,520,000 1,610,000 1,802,440 1,939,637 2,019,637 Interest & Fiscal Charges 2,452,907 1,661,805 1,761,775 1,656,297 1,702,963 Cost of issuance 314,224 - - - - Total Expenditures 104,120,435 114,365,214 120,382,280 131,289,780 149,023,828 Excess of Revenues
over (under) expenditures 22,560,411 22,319,182 23,097,577 30,420,812 11,168,532 Other Financing Sources (Uses)
Proceeds from debt issuance 27,295,000 - - - - Premium 2,683,949 - - - - Debt refunding - payment to escrow (29,581,180) - - - - Proceeds from loans - - 265,820 14,027 746,896 Proceeds from sale of capital assets
- - - - - Transfers in 9,468,607 12,623,834 11,402,970 13,083,222 14,117,848 Transfers out (9,757,309) (12,706,883) (13,729,596) (14,033,222) (14,915,501) Total other financing sources (uses) 109,067 (83,049) (2,060,806) (935,973) (50,757) Special Item: Transfer of fire activities - - - - - Net change in fund balances 22,669,478$ 22,236,133$ 21,036,771$ 29,484,839$ 11,117,775$

4.20% 3.34% 3.42% 3.11% 3.01%
Notes:

Source: City of San Mateo Annual Comprehensive Financial Reports Debt Service as a percentage of noncapital expenditures (1) (2)
(1) Former Redevelopment Agency Bonds were excluded in fiscal year 2012 and subsequent fiscal years. (2) Non-capital expenditures is the difference between total expenditures and capital outlay reported on Government-wide Statement of Activities.

FISCAL YEAR
City of San Mateo
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
206
DRAFT 11.30.2022 v2

184 of 210

2018 2019 2020 2021 2022
Revenues:

Property taxes 58,137,331 $ 63,899,035 $ 67,106,048 $ 66,631,563 $ 74,796,572 $ Sales taxes 26,313,958 28,606,235 26,958,596 27,948,874 33,408,980 Other taxes 29,818,008 32,051,159 23,481,055 22,257,348 28,907,233 Licenses, building and other permits 16,829,698 9,820,297 8,511,610 8,123,453 6,528,252 Fines, forfeitures and Penalties 1,983,069 2,361,048 1,486,473 2,247,808 2,201,172 Intergovernmental Revenues 10,081,168 13,900,475 13,455,252 19,888,509 23,286,197 Charges for services 11,865,030 13,006,381 12,140,217 11,638,776 16,758,036 Investment Earnings 1,274,997 6,257,565 6,451,349 411,387 (5,494,064) Indirect and in-lieu fees - 1,317,331 710,540 - - Assessment and Garbage collection surcharge 2,591,689 1,887,074 1,952,167 6,268,685 2,248,303 Parking meter and lease revenue 5,334,641 4,320,920 5,960,255 2,023,435 5,807,293 Impact fees 4,021,226 1,754,337 4,471,088 1,741,192 613,890 Capital contributions 375,000 750,000 750,000 750,000 750,000 Other Revenues 3,851,650 5,140,943 4,440,498 6,513,514 5,030,830 Total Revenues 172,477,465 185,072,800 177,875,148 176,444,544 194,842,694 Expenditures:

General Government 12,631,562 13,248,604 14,127,919 14,777,676 14,824,775 Community development 8,968,166 9,870,728 9,903,606 10,450,200 20,931,630
Public Safety 68,708,919 63,971,508 69,607,595 74,041,289 76,979,872 Public Works 10,030,818 10,525,838 11,194,667 10,555,345 11,410,240 Parks and recreation 14,967,718 15,563,445 15,177,801 14,341,093 16,260,067 Golf - 2,152,691 2,210,391 2,406,028 2,368,719 Library 6,721,084 7,421,137 7,260,024 7,063,780 7,645,003 Non-departmental 3,001,379 5,726,983 6,535,562 7,357,090 8,244,606 Capital Outlay 18,367,591 22,865,146 30,549,652 42,765,863 31,945,962 Debt Service
Principal 7,842,077 2,128,016 2,742,918 3,411,945 4,691,724 Interest & Fiscal Charges 1,705,078 1,624,137 1,554,488 3,412,560 2,950,846 Cost of issuance - - 380,166 - - Total Expenditures 152,944,392 155,098,233 171,244,789 190,582,869 198,253,444 Excess of Revenues
over (under) expenditures 19,533,073 29,974,567 6,630,359 (14,138,325) (3,410,750) Other Financing Sources (Uses)
Proceeds from debt issuance - - 47,595,599 1,525,675 - Premium - - 8,068,164 - - Debt refunding - payment to escrow - - (4,006,995) - - Proceeds from loans 2,157,843 - - - - Proceeds from sale of capital assets
- - 713,154 - - Transfers in 20,890,354 12,938,471 21,124,557 21,438,281 14,919,215 Transfers out (21,824,557) (12,995,487) (24,945,585) (21,613,526) (14,500,228) Total other financing sources (uses) 1,223,640 (57,016) 48,548,894 1,350,430 418,987 Special Item: Transfer of fire activities - (12,824,075) - - - Net change in fund balances 20,756,713$ 17,093,476$ 55,179,253$ (12,787,895)$ (2,991,763)$

6.89% 2.82% 2.98% 4.58% 4.58%
Notes:

Source: City of San Mateo Annual Comprehensive Financial Reports (1) Former Redevelopment Agency Bonds were excluded in fiscal year 2012 and subsequent fiscal years. (2) Non-capital expenditures is the difference between total expenditures and capital outlay reported on Government-wide Statement of Activities.

Debt Service as a percentage of noncapital expenditures (1) (2)

FISCAL YEAR
City of San Mateo
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
207
DRAFT 11.30.2022 v2

185 of 210

Fiscal
Year
End
Residential
Property
Commercial
Property
Industrial
Property
Other Property
(1)
Unsecured
Property
Less Tax-
Exempt
Property
Taxable
Assessed Value
Total
Direct Tax
Rate (2)
Estimated
Actual Value
(3)
Factor of
Taxable
Assessed
Value (3)
2013 13,313,456 2,872,202 170,041 410,573 615,933 522,010 16,860,195 0.18% 24,094,905 1.4291 2014 14,242,602 3,067,403 178,139 432,072 630,440 510,141 18,040,515 0.18% 28,743,512 1.5933 2015 15,233,601 3,228,752 199,821 291,470 724,375 309,015 19,369,004 0.18% 32,278,244 1.6665 2016 16,649,492 3,454,897 176,544 324,490 760,591 348,736 21,017,279 0.18% 40,006,118 1.9035 2017 17,909,339 3,823,284 180,072 574,686 738,320 591,188 22,634,512 0.18% 44,026,273 1.9451 2018 19,417,451 4,213,927 187,130 598,899 710,584 587,446 24,540,546 0.18% 48,683,633 1.9838 2019 20,830,053 4,927,490 197,026 547,948 774,755 670,274 26,606,997 0.18% 54,298,177 2.0407 2020 22,332,343 5,423,015 213,692 532,710 847,426 707,556 28,641,629 0.18% 55,884,822 1.9512 2021 23,744,131 6,182,033 230,600 591,123 796,824 744,934 30,799,777 0.18% 51,914,472 1.6855 2022 24,687,992 6,260,358 237,818 712,697 733,747 750,172 31,882,440 0.18% 62,404,646 1.9573 2) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 12-001. Rates are not adjusted for ERAF.

Source: County Assessor data,Source: MuniServices, LLC / Avenu Insights & Analytics City of San Mateo
Last Ten Fiscal Years
(amount expressed in thousands)
Assessed Value and Estimated Actual Value of Taxable Property Notes:
1) Other property includes state unitary value of $3,294,887. 3) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values. 208
DRAFT 11.30.2022 v2

186 of 210

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Basic City and County Levy
CITY OF SAN MATEO 0.1761 0.1761 0.1761 0.1761 0.176141 0.1761 0.1761 0.1761 0.1761 0.1761

OTHER SAN MATEO
COUNTY AGENCIES 0.8239 0.8239 0.8239 0.8239 0.823859 0.8239 0.8239 0.8239 0.8239 0.8239 TOTAL 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Override Assessments
S M CTY DEBT-LIB. PROJECT 0.0129 0.0105 0.0105 0.0102 0.0090 0.0084 0.0077 0.0071 0.0067 0.0064 S M FOSTER CITY SERIES Q - - - - - - - - 0.0022 0.0035 SAN MATEO HIGH BD SER 2 0.0068 0.0067 0.0072 0.0064 0.0066 0.0065 0.0063 0.0063 0.0021 - SAN MATEO UN HIGH BND S 0.0135 0.0121 0.0108 0.0063 0.0063 0.0063 0.0047 0.0036 0.0061 0.0061 SAN MATEO HIGH RFND. SER 0.0088 0.0045 - - - - - - 0.0044 0.0247 SAN MATEO HIGH 2012 GO 0.0010 0.0038 0.0078 0.0088 0.0106 0.0105 0.0115 0.0109 0.0019 0.0046 SAN MATEO HIGH 2016 GO - - - - - 0.0025 0.0020 0.0018 0.0061 0.0036 SAN MATEO HIGH 2017 GO - - - - - - 0.0020 0.0016 0.0015 0.0014 SAN MATEO HIGH 2019 GO - - - - - - - - 0.0025 0.0023 SAN MATEO HIGH 2019 REF - - - - - - - - 0.0020 0.0061 SM JR COLLEGE BD 2002 - - - 0.0012 0.0019 0.0019 0.0018 0.0019 0.0019 0.0020 SM JR COLL BOND SER 2000 0.0014 0.0015 0.0002 - - - - - 0.0018 0.0019 SM JR COLL BOND 2001 SE 0.0010 0.0010 0.0009 0.0008 0.0006 0.0007 0.0007 0.0007 0.0007 0.0007 SM JR COLL BOND 2006 SE 0.0050 0.0047 0.0042 0.0039 0.0037 0.0036 0.0035 0.0033 0.0032 0.0031 SM JR COLL BOND 2014 - - - - 0.0029 0.0027 0.0024 0.0018 0.0017 - SM JR COLL BOND 2015 - - - - 0.0071 0.0066 0.0012 0.0011 0.0012 - SM JR COLL ELECT 2014 - - - - - - - 0.0088 0.0036 0.0039 SM JR COLL 2018 REF BOND - - - - - - - 0.0007 0.0005 0.0005 SM JR COLL 2019 REF BOND - - - - - - - 0.0006 0.0005 0.0004 SAN MATEO COMM COLL 200 0.0059 0.0067 0.0069 0.0036 0.0085 0.0080 0.0079 0.0042 0.0037 0.0040 SAN MATEO COMM COLL - - - - - - - 0.0035 - 0.0043 SAN MATEO HIGH ELEC 0.0080 0.0084 0.0217 0.0251 0.0180 0.0175 0.0142 0.0143 0.0183 - SM FOSTER CITY 2005 REF 0.0262 0.0242 0.0185 0.0197 0.0156 0.0162 0.0170 0.0042 - - SAN FC 2012 GO REF Ser 0 0.0076 0.0087 0.0071 0.0069 0.0060 0.0056 0.0052 0.0050 - - SAN FC GO BOND 08 ELEC - 0.0092 0.0132 0.0082 0.0154 0.0151 0.0146 0.0140 0.0073 0.0053 SAN FC GO BOND 2014
- - - 0.0006 0.0002 0.0003 0.0003 0.0011 0.0013 0.0014 SAN FC GO BOND 2015 - - - 0.0048 0.0174 0.0170 0.0159 0.0194 0.0151 0.0173 SM FC GO BD 2020 REFUND - - - - - - - - 0.0203 0.0390 SM JR COLL BOND REF 201 0.0061 0.0055 0.0068 0.0155 - - - - 0.0025 0.0019 TOTAL 0.1042 0.1075 0.1158 0.1220 0.1298 0.1294 0.1189 0.1159 0.1191 0.1444 TOTAL TAX RATE 1.1042 1.1075 1.1158 1.1220 1.1298 1.1294 1.1189 1.1159 1.1191 1.1444 Sources: (1) City of San Mateo Annual Comprehensive Financial Reports (2) County Auditor/Controller data, MuniServices, LLC / Avenu Insights & Analytics

FISCAL YEAR
City of San Mateo
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate expressed in percentage)
209
DRAFT 11.30.2022 v2

187 of 210

2022 2013
Taxpayer Business Type Taxpayer Business Type
Apple Stores Furniture/Appliance Apple Stores Furniture/Appliance Arco AM/PM Mini Marts Service Stations Arco AM/PM Mini Marts Service Stations Better Source Liquidators Office Equipment Bed Bath & Beyond Miscellaneous Retail Booster Fuels Service Stations Cafepress.Com Miscellaneous Retail Chevron Service Stations Service Stations Cheesecake Factory Restaurants CVS/Pharmacy Drug Stores Chevron Service Stations Service Stations Financial Services Vehicle Trust Leasing CVS/Pharmacy Drug Stores GoProCamera.Com Miscellaneous Other Financial Services Vehicle Trust Leasing Home Depot Bldg.Matls-Retail Gas & Shop Service Stations Service Stations Macy's Department Store Department Stores Home Depot Bldg.Matls-Retail Marshall's Stores Apparel Stores K Mart Stores Department Stores Nordstrom Department Store Department Stores Macy's Department Store Department Stores Palette Tea Garden Restaurants Marshall's Stores Apparel Stores Personalized Beauty Discovery Miscellaneous Retail Nordstrom Department Store Department Stores Peter Pan BMW Auto Sales - New Old Navy Clothing Co. Apparel Stores Putnam Ford Auto Sales - New Peter Pan BMW Auto Sales - New Ross Stores Apparel Stores Safeway Stores Food Markets
Safeway Stores Food Markets Sears Roebuck & Company Department Stores Shell Service Stations Service Stations Shell Service Stations Service Stations Target Stores Department Stores Solar City Green Energy The Cheesecake Factory Restaurants Sportmart Recreation Products The Shane Company Miscellaneous Retail Target Stores Department Stores Total Wine & More Liquor Stores Toys R Us Miscellaneous Retail Union 76 Service Stations Service Stations Walgreen's Drug Stores Drug Stores Whole Foods Market Food Markets Whole Foods Market Food Markets Note: Top Sales Tax Producers listed in alphabetical order City of San Mateo
Principal Sales Tax Producers
Current Year and Nine Years Ago
Source: MuniServices, LLC / Avenu Insights & Analytics
210
DRAFT 11.30.2022 v2

188 of 210

Taxpayer
Taxable
Value Rank
Percent of
Total City
Taxable
Value
Taxable
Value Rank
Percent of
Total City
Taxable
Value
Bay Meadows Station 4 Investor 712,995 $ 1 2.24% Essex Protfolio Lp 632,794 2 1.98%
Franklin Templeton Corp Svcs 487,822 3 1.53% 224,767 1 1.33% HSC Holdings 356,353 4 1.12%
2000 Sierra Point Parkway LLC 329,781 5 1.03% 1825 SG Corporation 277,223 6 0.87%
HG Clearview Owner LLC 228,138 7 0.72% Asn Bay Meadows I LLC & Bay Me 222,724 8 0.70% 187,906 3 1.11% Rakuten CHW LLC 192,560 9 0.60%
Park Place Holdco LLC 178,022 10 0.56% Sobrato Interests 3 217,003 2 1.29%
Bohannon Development Co 181,010 4 1.07% Peninsula Office Park 115,806 5 0.69% Essex Hillsdale Garden Apartme 104,832 6 0.62% DW Bridgepointe LLC 95,937 7 0.57%
Concar Acquisition Company 92,878 8 0.55% Park Place Realty Holding Co I 90,700 9 0.54% Crossroads Assoc 77,797 10 0.46%
Total Top 10 Taxpayers 3,618,412 11.35% 1,388,636 8.23% Total Taxable Value 31,882,439 $ 100.00% 16,859,447 $ 100.00% Source: MuniServices, LLC / Avenu Insights & Analytics
2022 2013
City of San Mateo
Current Year and Nine Years Ago
(amount expressed in thousands)
Principal Property Taxpayers
211
DRAFT 11.30.2022 v2

189 of 210

This page intentionally left blank.
212
DRAFT 11.30.2022 v2

190 of 210

Fiscal
Year Total Tax Delinquent
Ended Levied for Collected Percentage Tax Collected Percentage June 30 Fiscal Year (1) Amount (2) of Levy Collections (3) Amount of Levy (4) 2013 38,200,000$ 38,179,530$ 99.95% n/a 38,179,530$ 99.95% 2014 42,500,000 42,485,569 99.97% n/a 42,485,569 99.97% 2015 45,515,000 45,514,243 100.00% n/a 45,514,243 100.00% 2016 49,821,722 49,821,722 100.00% n/a 49,821,722 100.00% 2017 52,989,556 52,989,556 100.00% n/a 52,989,556 100.00% 2018 58,146,288 58,137,331 99.98% n/a 58,137,331 99.98% 2019 63,899,034 63,899,034 100.00% n/a 63,899,034 100.00% 2020 67,106,048 67,106,048 100.00% n/a 67,106,048 100.00% 2021 66,631,560 66,631,560 100.00% n/a 66,631,560 100.00% 2022 73,389,167 73,389,167 100.00% n/a 73,389,167 100.00% Notes:

Source: County of San Mateo
Total Collections To Date
Collected Within the
City of San Mateo
Property Tax Levies and Collections
Last Ten Fiscal Years
(2) Former redevelopment agency tax increments were excluded starting February 1, 2012, and subsequent fiscal years. (4) Years of lower collection are due to weak housing market and assessed value appeals.

Fiscal Year of the Levy
(1) The data in this table includes the basic and supplemental city property taxes and subventions, debt service tax and the Redevelopment Agency tax increments, ERAF refunds, and property tax in-lieu of motor vehicle fees. (3) San Mateo County assesses properties and it bills, collects, and distributes property taxes to all taxing entities, including the City. Under State law, known as the Teeter Plan, the county remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Only secured taxes will be paid under the Teeter Plan.
213
DRAFT 11.30.2022 v2

191 of 210

Governmental Activities
General
Fiscal Obligation Redevelopment Revenue Loans Capital Lease Year Bonds Bonds Bond Payable Payable
2013 28,638$ -$ 28,782$ -$ -$ 2014 28,852 - 28,147 - - 2015 27,580 - 27,478 253 - 2016 26,268 - 26,774 193 - 2017 24,920 - 26,026 865 - 2018 23,528 - 19,512 2,936 - 2019 22,086 - 25,408 2,728 86 2020 20,584 - 74,356 4,323 29 2021 19,032 - 72,379 5,501 - 2022 17,410 - 69,888 4,880 - Notes:

Former Redevelopment Agency Bonds were excluded in fiscal year 2012 and subsequent fiscal years.

Golf bond was included in Governmental Activities Revenue Bond effective fiscal year 2019 (when Golf operation was transferred to General Fund) (amounts expressed in thousands, except per capita amount) Last Ten Fiscal Years
Ratios of Outstanding Debt by Type
Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Source: City of San Mateo Annual Comprehensive Financial Reports Capital lease payable was included in Governmental Activities capital lease payable effective fiscal year 2019 (when Golf operation was transferred to General Fund)
City of San Mateo
214
DRAFT 11.30.2022 v2

192 of 210

Business-Type Activities
Total Percentage Redevelopment County
Fiscal Sewer Loans Golf Capital Lease Primary of Personal Per Tax Allocation CDBG Year Bonds Payable Bond Payable Government Income Capita Bond Loan 2013 $ 45,496 - $ 7,951 -$ 112,880$ 2.47% $ 1,128 80,473.00$ $ 539.00 2014 44,916 4,000 7,925 - 115,854 2.47% 1,142 78,903 - 2015 61,434 4,916 7,465 - 131,141 2.54% 1,277 75,549 - 2016 59,867 11,000 7,095 - 133,213 2.45% 1,288 72,202 - 2017 58,244 5,000 6,710 209 123,991 2.12% 1,187 68,400 - 2018 56,572 5,000 6,572 142 116,280 1.88% 1,112 63,395 - 2019 338,126 - - - 390,453 6.17% 3,788 59,095 - 2020 334,752 - - - 436,064 6.89% 4,230 55,045 - 2021 331,296 - - - 430,229 6.30% 4,175 50,875 - 2022 635,380 - - - 729,580 9.23% 7,030 46,546 - Notes:

Former Redevelopment Agency Bonds were excluded in fiscal year 2012 and subsequent fiscal years.

Golf bond was included in Governmental Activities Revenue Bond effective fiscal year 2019 (when Golf operation was transferred to General Fund) Source: City of San Mateo Annual
Capital lease payable was included in Governmental Activities capital lease payable effective fiscal year 2019 (when Golf operation was transferred to General Fund) Fiduciary Funds
Details regarding the City's outstanding debt can be found in the notes to the financial statements.

City of San Mateo
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) 215
DRAFT 11.30.2022 v2

193 of 210

Percentage
General Tax Less: Amount of Total Taxable
Fiscal Obligation Allocation Available in Assessed
Year Bonds Bonds Debt Svc Fund Total (net) Value Per Capita 2013 28,638$ - $ 2,404 $ 26,234 $ 0.16% 265 $ 2014 28,852 - 2,747 26,105 0.14% 261 2015 27,580 - 3,034 24,546 0.13% 242 2016 26,268 - 3,642 22,626 0.11% 220 2017 24,920 - 4,026 20,894 0.09% 202 2018 23,528 - 4,455 19,073 0.08% 183 2019 22,086 - 4,960 17,126 0.06% 164 2020 20,584 - 5,340 15,244 0.05% 148 2021 19,032 - 5,701 13,331 0.04% 129 2022 17,410 - 5,929 11,481 0.04% 111 Notes:

Source: City of San Mateo Annual Comprehensive Financial Reports City of San Mateo
(amounts expressed in thousands, except per capita amount) Last Ten Fiscal Years
Ratios of General Bonded Debt Outstanding
Outstanding General Bonded Debt
Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Former Redevelopment Agency Bonds were excluded in fiscal year 2012 and subsequent fiscal years. 216
DRAFT 11.30.2022 v2

194 of 210

2021-22 Assessed Valuation: 31,991,262,076$
Total Debt % City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2022 Applicable(1) Debt 6/30/2022
San Mateo Community College District 733,897,184 $ 12.01% 88,148,391$ San Mateo Union High School District 665,230,852 34.64% 230,402,706 Sequoia Union High School District 475,140,000 0.56% 2,675,038 Belmont-Redwood Shores School District 63,777,230 3.88% 2,471,368 Belmont-Redwood Shores School District Belmont School Facilities Imp Dist 40,110,864 6.85% 2,749,199 Hillsborough School District 70,535,378 0.00% 705 San Mateo-Foster City School District 398,028,474 68.16% 271,296,208 City of San Mateo Community Facilities District No.2008-1 72,345,000 100.00% 72,345,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 2,519,064,982 $ 670,088,615 $ DIRECT TAX AND ASSESSMENT DEBT:

City of San Mateo 16,140,000 100.00% 16,140,000 TOTAL DIRECT TAX AND ASSESSMENT DEBT: 16,140,000 $ 16,140,000 $ TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 2,535,204,982$ 686,228,615 $ OVERLAPPING GENERAL FUND DEBT:

San Mateo County General Fund Obligations 612,605,687 12.01% 73,580,069 San Mateo County Board of Education Certificates of Participation 6,490,000 12.01% 779,514 Highlands Recreation District General Fund Obligations 2,161,000 0.02% 346 San Mateo County Mosquito & Vector Control District General Fund Obligations 3,825,000 12.01% 459,421 TOTAL OVERLAPPING GENERAL FUND DEBT 625,081,687$ 74,819,350$ DIRECT GENERAL FUND DEBT:

City of San Mateo General Fund Obligations 62,155,000 100.00% 62,155,000 TOTAL DIRECT GENERAL FUND DEBT 62,155,000$ 62,155,000$ TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 687,236,687 136,974,350 Less: City of San Mateo enterprise supported obligations - Highlands Recreation District supported obligations 270 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 136,974,080$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency) $43,435,000 100.00% 43,435,000$ TOTAL GROSS DIRECT DEBT 78,295,000
TOTAL NET DIRECT DEBT 78,295,000
TOTAL OVERLAPPING DEBT 788,342,965
GROSS COMBINED TOTAL DEBT 866,637,965 (2)
NET COMBINED TOTAL DEBT 866,637,695$
Ratios to 2021-22 Assessed Valuation:

Direct Debt ($16,140,000) 0.05%
Total Direct and Overlapping Tax and Assessment Debt 2.15% Total Gross Direct Debt ($78,295,000) 0.24%
Total Net Direct Debt ($78,295,000) 0.24%
Gross Combined Total Debt 2.71%
Net Combined Total Debt 2.71%
Ratios to Redevelopment Successor Agency Incremental Valuation ($2,450,743,958):

Total Overlapping Tax Increment Debt 1.77%
Notes:

Source: MuniServices, LLC / Auenu Insights & Analysis and City of San Mateo Annual Comprehensive Financial Report City of San Mateo
Direct and Overlapping Governmental Activities Debt
As of June 30, 2022
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city, divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue and mortgage revenue. 217
DRAFT 11.30.2022 v2

195 of 210

2013 2014 2015 2016 2017
Debt Limit 2,607,331$ 2,782,598$ 2,951,703$ 3,204,902$ 3,483,855$ Total net debt applicable to limit 28,638 28,852 27,580 26,268 24,920 Legal debt margin 2,578,693$ 2,753,746 $ 2,924,123 $ 3,178,634 $ 3,458,935 $ Total net debt applicable to the limit as a
percentage of debt limit 1.11% 1.05% 0.94% 0.83% 0.72%
Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

Source: County of San Mateo

FISCAL YEAR
City of San Mateo
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
218
DRAFT 11.30.2022 v2

196 of 210

2018 2019 2020 2021 2022
Debt Limit 3,769,199$ 4,091,591$ 4,402,378$ 4,731,707$ 4,894,892$ Total net debt applicable to limit 23,528 22,086 20,584 19,032 17,410 Legal debt margin 3,745,671$ 4,069,505 $ 4,381,794 $ 4,712,675 $ 4,877,482 $ Total net debt applicable to the limit as a
percentage of debt limit 0.63% 0.54% 0.47% 0.40% 0.36%
Legal Debt Margin Calculation for Fiscal Year 2022
2022
Assessed value 31,882,439$
Add back: exempt real property 750,172
32,632,611$
Debt limit (15% of assessed value) 4,894,892$
Debt Application to limit:

General obligation bonds 17,410
Total net debt applicable to limit 17,410
Legal debt margin 4,877,482$
Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

Source: County of San Mateo
City of San Mateo
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands)

FISCAL YEAR
219
DRAFT 11.30.2022 v2

197 of 210

Sewer Less Net
Fiscal Charges Operating Available Tax
Year and Other (1) Expenses (2) Revenue Principal Interest Coverage Increment Principal Interest Coverage 2013 $ 28,781 17,980$ $ 10,801 $ 1,415 $ 2,072 3.10 - - - - 2014 28,705 16,874 11,831 1,455 2,016 3.41 - - - - 2015 32,453 19,511 12,942 17,800 (3) 2,041 3.65 (3) - - - - 2016 31,874 23,218 8,656 1,460 2,560 2.15 - - - - 2017 31,932 21,419 10,513 1,515 2,516 2.61 - - - - 2018 41,927 21,870 20,057 1,565 2,462 4.98 - - - - 2019 53,362 23,347 30,015 1,585 3,220 6.25 - - - - 2020 64,587 22,828 41,759 1,650 9,536 3.73 - - - - 2021 69,020 24,262 44,758 1,730 13,195 3.00 - - - - 2022 71,061 24,409 46,652 20,820 (4) 20,413 2.17 (4) - - - - Notes:
(1) Sewer charges and other include investment earnings. (2) Operating expenses do not include interest or depreciation. (3) Increase due to the refunding of the 2003 Sewer Revenue bonds totaling $16.3 million, which is excluded from the coverage calculation. (4) Increase due to the refunding of the 2011A Sewer Revenue bonds totaling $19.7 million, which is excluded from the coverage calculation.

Source: City of San Mateo Annual Comprehensive Financial Reports Pledged-Revenue Coverage
City of San Mateo
Debt Service
Tax Allocation Bonds
Debt Service
(amounts expressed in thousands)
Last Ten Fiscal Years
Sewer Revenue Bonds
220
DRAFT 11.30.2022 v2

198 of 210

Fiscal
Year
Population
(1)
Personal Income
(2)
Per Capita
Personal
Income (2)
Median
Age
*Public School
Enrollment
County
Unemployment
Rate (%) (3)
City
Unemployment
Rate(%) (3)
County
Population (1)
City
Population
(% of County)
(1)
2013 99,061 4,429,908,859 44,719 37.3 19,700 6.70% 5.30% 735,678 13.47% 2014 100,106 4,570,705,818 45,659 40.2 19,868 5.40% 4.30% 745,193 13.43% 2015 101,429 4,696,568,416 46,304 39.2 20,179 3.20% 3.10% 753,123 13.47% 2016 102,659 5,156,150,934 50,226 39.1 20,603 3.40% 3.30% 766,041 13.40% 2017 103,426 5,444,686,980 52,643 39.1 21,074 3.00% 2.90% 770,203 13.43% 2018 104,490 5,850,629,158 55,992 38.9 21,321 2.20% 2.00% 774,155 13.50% 2019 104,570 6,175,904,200 59,060 39.6 21,299 1.70% 1.60% 774,485 13.50% 2020 103,087 6,332,177,735 61,426 39.2 21,461 11.10% 9.70% 773,244 13.33% 2021 103,045 6,832,166,874 66,303 38.2 20,729 6.84% 6.20% 765,245 13.47% 2022 103,779 7,903,471,358 76,157 37.8 20,012 1.70% 1.50% 744,662 13.94% Notes:
(1) Population Projections are provided by the California Department of Finance. (2) Income Data is provided by U.S. Census Bureau, 2010 American Community Survey. (3) Unemployment Data is provided by the Employment Development Department's Bureau of Labor Statistics Department.

Source: MuniServices, LLC / avenu Insights & Analytics City of San Mateo
Demographic and Economic Statistics
Last Ten Fiscal Years
*Student Enrollment reflects the total number of students enrolled in the San Mateo Union High School District and San Mateo-Foster City Unified School District.

Any other school districts within the City are not accounted for in this statistic. 221
DRAFT 11.30.2022 v2

199 of 210

Business Name
Number of
Employees
Total
Employment
(%)
Number of
Employees
Total
Employment
(%)
County of San Mateo Medical Center* 1,317 2.08% 1,204 2.32% Sony Interactive Entertainment America, Playstation America 1,248 1.97% San Mateo Union High School District** 1,003 1.59% 950 1.83% San Mateo-Foster City Unified School District 999 1.58% 1,105 2.13% San Mateo Community College District 579 0.92% 763 1.47% Franklin Templeton Investor 541 0.86% 1,113 2.14% San Mateo County Behavioral Health 467 0.74% 470 0.91% City of San Mateo 456 0.72% 928 1.79%
Rakuten 423 0.67%
Mills-Peninsula Health Center 351 0.56% 444 0.86% Fisher Investments 454 0.87%
Macy's Department Stores 347 0.67%
Total Top 10 Employers 7,384 11.68% 7,778 14.99% Total Labor Force (1) 63,200 51,900
Sources:
(1) City of San Mateo Annual Comprehensive Financial Reports (2) MuniServices, LLC / Avenu Insights & Analytics
Results based on direct correspondence with city’s local businesses. *Count includes San Mateo Medical Center as well as outside clinic locations. **Includes Capuchino and Burlingame HS which are outside the city limits of San Mateo. (1) Total City Labor Force provided by EDD Labor Force Data.

Principal Employers for City of San Mateo
City of San Mateo
Current Year and Nine Years Ago
2022 2013
222
DRAFT 11.30.2022 v2

200 of 210

Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General government 56.86 57.81 64.75 66.41 65.58 66.09 62.65 62.65 61.95 59.95 Community development 31.72 39.72 47.35 47.35 48.94 48.94 49.72 51.72 51.40 51.40 Public safety 243.77 244.77 249.78 256.53 268.11 265.85 177.14 171.51 170.50 167.50 (1) Public works
(excluding Sewer) 41.18 44.51 44.52 45.99 57.96 57.11 63.51 61.56 63.71 64.08 Parks and recreation
(excluding Golf) 98.39 98.79 101.54 101.54 102.07 103.21 107.73 107.73 106.40 107.68 Library 48.37 47.95 48.85 49.35 50.59 52.48 53.36 53.36 53.34 52.34 Sewer 75.73 75.24 76.69 77.99 80.49 80.49 84.58 86.53 86.20 84.83 Golf 11.54 11.14 11.14 11.14 11.77 11.77 12.55 12.55 12.75 12.75 Total: 607.56 619.93 644.62 656.30 685.51 685.94 611.24 607.61 606.25 600.53 Notes:

Source: Adopted City Budgets
(1) Public safety number for fiscal year 2019 only included Police Department's employees. Fire Operations were transferred to San Mateo Consolidated Fire Department effective 1/13/2019.

City of San Mateo
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
Full-Time Equivalent Employees as of June 30
223
DRAFT 11.30.2022 v2

201 of 210

Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Building:

Building permits issued 3,050 3,481 3,587 4,359 4,169 4,385 3,678 3,345 3,937 4,061 Inspections 12,229 16,122 16,090 16,984 19,061 20,252 18,828 15,890 19,138 16,160 Finance:

Business licenses issued
8,497 9,111 9,474 8,796 8,656 8,204 8,072 7,207 5,010 (1) Fire:

Number of calls
8,274 9,249 9,672 9,780 9,282 9,822 5,365 (3) Inspections 5,620 6,872 7,213 7,504 7,681 4,513 1,284 (3) Golf course:

Golf rounds played
70,294 71,677 63,903 62,441 59,348 62,923 61,805 60,820 80,050 83,964 (4) Library:

Annual circulation
837,004 876,149 922,790 946,259 981,512 988,301 1,129,127 921,979 657,064 983,423 (4) Library visits 521,264 530,312 566,244 555,008 603,760 610,834 764,469 422,226 25,168 255,644 (4) Parks and recreation:

Course registration
23,303 23,058 23,752 24,843 23,123 23,734 22,521 23,412 5,837 14,537 Facility rentals 1,302 1,391 1,386 1,368 1,346 1,369 1,329 827 - 191 Picnic rentals 1,111 1,192 1,275 1,086 1,274 1,340 1,423 1,165 361 1,650 Police:

Arrests
3,264 3,626 3,077 3,311 2,947 2,670 2,496 2,112 2,242 2,231 Traffic violations 9,433 6,002 4,076 6,548 4,470 13,364 11,058 5,999 9,400 7,636 (2) Parking violations 32,211 29,548 35,284 30,699 31,950 27,103 27,410 23,300 36,558 32,276 Public works:

Street resurfacing (lane miles) 18 22 21 14 4 6 22 7 18 8.5 Potholes repaired 373 644 443 198 315 150 297 209 331 744 Sewer:

Number of customers
27,532 27,578 27,661 27,816 27,965 27,961 28,237 28,366 28,359 28,359 Average daily sewage
treatment (mgd)

11.6 10.8 12.0 10.0 12.2 10.4 11.5 9.9 9.7 10.6 Notes:

Source: Various City Departments
(2) Number of traffic violations starting fiscal year 2018 included number of photo enforcement violations. Such information was not available for prior fiscal years. (1) Numbers of business licenses issued for fiscal years prior to fiscal year 2014 were not available. (3) Number of fire calls for fiscal year 2019 included calls for period from 7/1/18 to 1/12/19. Fire operation was transferred to San Mateo Consolidated Fire Department (SMC Fire) effective 1/13/2019. Please refer to SMC Fire annual financial report for Fire Department operating indicators starting from January 13, 2019.
(4) Due to shelter-in-place orders, all three San Mateo Public Library facilities were closed to the public from 3/16/20 through 6/30/20, and the golf course was completely closed from 3/16/20 through 5/5/20.

City of San Mateo
Operating Indicators by Function
Last Ten Fiscal Years

FISCAL YEAR
224
DRAFT 11.30.2022 v2

202 of 210

Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fire:

Fire stations 6 6 6 6 6 6 6 6 6 6 Golf course:

Municipal golf courses
1 1 1 1 1 1 1 1 1 1 Library:

Main Library
1 1 1 1 1 1 1 1 1 1 Branch Library 2 2 2 2 2 2 2 2 2 2 Parks and recreation:

Parks acreage
300 314 318 320 320 320 320 320 320 320 Parks 30 30 34 35 35 35 35 35 35 35 Swimming pools 2 2 2 2 2 2 2 2 2 2 Tennis courts 16 16 16 16 16 16 16 16 16 16 Community centers 6 6 6 6 6 6 6 6 6 6 Police:

Stations
1 1 1 1 1 1 1 1 1 1 Patrol units 34 35 35 36 37 37 37 40 40 40 Public works:

Street (miles)
204 204 204 204 204 204 204 204 204 204 Street lights 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Traffic signals 79 79 84 84 86 87 87 87 90 90 Sewer:

Wastewater treatment plant
1 1 1 1 1 1 1 1 1 1 Sanitary sewers (miles) 236 236 236 236 260 260 260 260 260 260 Storm drains (miles) 140 140 140 140 148 148 148 148 148 148 Number of pump stations 38 38 37 35 37 37 37 37 37 37 Maximum daily treatment
capacity (mgd)

15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 Source: Various City Departments
City of San Mateo
Capital Asset Statistics by Function
Last Ten Fiscal Years

FISCAL YEAR
225
DRAFT 11.30.2022 v2

203 of 210

This page intentionally left blank.
226
DRAFT 11.30.2022 v2

204 of 210

City of San Mateo
Measure S Fund
San Mateo, California
Independent Accountant’s Report
on Agreed-Upon Procedures Applied
to Schedule of Measure S Revenues and Expenditures
For the Year Ended June 30, 2022

205 of 210

206 of 210

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEP
ENDENT ACCOUNTANT’S REPORT

ON APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of the City Council
of the City of San Mateo
San Mateo, California
We have performed the procedures enumerated below on the accompanying Schedule of Measure S Revenues and Expenditures (the “schedule”) of the City of San Mateo, California (the “City”) for the year ended June 30, 2022.

The City is responsible for the schedule.

The City has agreed to and acknowledged that the pro cedures performed are appropriate to meet the intended purpose of meeting the requirements of City Ordinance 2015-11, Amending Chapter 3.50 of the City’s Municipal Code, “Transactions and Use Tax” To Extend the One-Quarter Cent Transactions and Use Tax Term for Thirty Years”. The City has agreed to and acknowledged that th e procedures performed are appropriate for its purposes.

This report may not be suitable for a ny other purpose. The procedures perform ed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. Obtained and reviewed City Ordinance 2015-11, Ame nding Chapter 3.50 of the City’s Mu nicipal Code, “Transa
ctions and Use Tax” To Extend the One-Quarte r Cent Transactions and Use Tax Term for Thirty Year
s”.

Finding: No exceptions were noted as a result of our procedures.

2. Obtained a Schedule of Measure S Revenues and Expenditu res for the fiscal year and agreed totals reported on the schedule to the City’
s trial balance.

Finding: No exceptions were noted as a result of our procedures.

3. Compared Measure S revenues reported to quarter ly sales tax reports published by the Board of Equalization.

Finding:

No exceptions were noted as a result of our procedures.

4. Inquired if the Oversight Committee recommended and/ or the City Council adopted an expenditure plan directing the use of Measure S revenues.

Finding: The Oversight Committee reviewed the preliminar y Measure S fund budget, and noted Measure S funding initiatives and funding choices were reviewed and approved. The City Council budget adoptio n resolution contained the Measure S spen
ding plan.

207 of 210

To the Honorable Mayor and Members of the City Council
of the City of San Mateo