CITY OF SAN MATEO
City Council Regular Meeting
February 18, 2025
7:00 PM
City Hall Council Chamber
Entrance is on O’Farrell Street
COUNCIL MEMBERS
Robert Newsom Jr.
Adam Loraine
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash
AGENDA
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F
ebruary 18, 2025
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The City Council meeting will conclude by 11:00 p.m. unless otherwise extended by council vote.
Any unheard items will automatically move forward to the next regular meeting.
CALL TO ORDER
Pledge of Allegiance
Roll Call
AB 2449 Requests and Consideration for Meeting Participation by Teleconference due to Just Cause or Emergency Circumstances
CEREMONIAL
1. Black History Month – Proclamation
2. Sojourn to the Past – Presentation
CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the Council to be routine and will be enacted by one motion without discussion. If discussion is desired, that item may be removed and considered separately.
3. San Mateo County Transportation Authority Measures A and W - Primary Grant Agreement Adopt a Resolution to authorize the execution of a primary grant agreement with the San Mateo County Transportation Authority for future funding from Measures A and W; and authorize the City Manager to execute the agreement in substantially the form presented.
CEQA: Adoption of a Resolution and approval of the Primary Grant Agreement with the San Mateo County Transportation Authority is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
4. Legislative Advocacy and Grant Writing Services — Agreement
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Approve an agreement with California Public Policy Group, Inc. (CPPG) for legislative advocacy and grant writing services in the amount of $115,000; authorize the City Manager to exercise up to two 1-year extensions for up to $115,000 each year, for a total not to exceed amount of $345,000 over three years; and authorize the City Manager to execute the agreement in substantially the form presented.
CEQA: This agreement is 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).))
5. Legal Advertising Services – Bid Rejection
Reject all bids received for the City's Legal Advertising Services.
CEQA: This bid rejection is 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).)
6. SEIU Local 521 Non-Merit Part-Time Unit, Memorandum of Understanding — Adoption Approve a Resolution to adopt the Memorandum of Understanding (MOU) with the SEIU Local 521 Non-Merit Part-Time Unit (SEIU NMPT) for a three-year term from October 7, 2024 through June 5, 2027.
CEQA: This Tentative Agreement is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).))
7. San Mateo Police Sergeants’ Association — Memorandum of Understanding Changes Adopt a Resolution to amend the Memorandum of Understanding (MOU) with the San Mateo Police Sergeants’ Association to clarify which premiums are included in the MOU overtime calculations.
CEQA: This Sideletter of Agreement is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
8. Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 — Approval Accept the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024 CEQA: This report is 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).)
PUBLIC COMMENT
Members of the public wishing to comment on any item not appearing on the agenda may address the City Council at this time. State law prevents Council from taking action on any matter not on the agenda; your comments may be referred to staff for follow up.
Public comment is limited to a total of 15 minutes; however, an opportunity for additional public comment may be provided later in the agenda.
NEW BUSINESS
9. Enforcement - Citation Authority – Ordinance Introduction Introduce an Ordinance to amend San Mateo Municipal Code Section 1.04.050(a), “Enforcement - Citation Authority”
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CEQA: This City Council action to amend San Mateo Municipal Code Section 1.04.050(a) “Enforcement—Citation Authority,” is not a project subject to CEQA review, because it consists of an organizational or administrative activity that will not result in a direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
10. Campaign Contribution Limits – Review
Review and provide direction to staff on whether the City's campaign contribution limits and campaign rules should be amended, or if no changes should be made; and receive an update on the City's Campaign Finance Dashboard
CEQA: This review is 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).)
11. 2024-25 Mid-Year Update and Budget Amendments – Adoption Adopt a Resolution amending the FY 2024-25 General Fund operating budget to reflect the recommended mid- year budget adjustments and receive the FY 2024-25 mid-year budget update.
CEQA: This mid-year budget update is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
REPORTS AND ANNOUNCEMENTS
City Manager, City Attorney and Council Members report on their various assignments and liaison roles and Council requests for scheduling future items.
ADJOURNMENT
----------------------------------------------------------------------------------------------------------------------------- AGENDAS:
Agendas and material are posted on the City’s website on the Friday preceding each Council Meeting and can be viewed on the City's website at
www.cityofsanmateo.org
. Any supplemental material distributed to the Council after the posting of the agenda will be made part of the official record.
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Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 3 Section Name: CONSENT CALENDAR Account Number: 10-4661 File ID: 25-9569 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: February 18, 2025
SUBJECT:
San Mateo County Transportation Authority Measures A and W – Primary Grant Agreement RECOMMENDATION:
Adopt a Resolution to authorize the execution of a primary grant agreement with the San Mateo County Transportation Authority for future funding from Measures A and W; and authorize the City Manager to execute the agreement in substantially the form presented.
BACKGROUND:
In 1988, San Mateo County voters approved Measure A, a 20-year half-cent sales tax to fund and leverage additional funding for transportation projects and programs in San Mateo County. The approval of Measure A created the San Mateo County Transportation Authority (TA) to manage and administer the sales tax revenues generated in conformance with the Transportation Expenditure Plan (TEP). The 1988 sales tax expired on December 31, 2008. In 2004, the San Mateo County voters reauthorized the Measure A half-cent sales tax and adopted a new TEP for an additional 25 years (from January 1, 2009 through December 31, 2033). The TEP established funding categories for Transit; Highways Improvements; Local Streets/Transportation; Grade Separations; Pedestrian and Bicycle Improvements; and Alternative Congestion Relief projects.
In 2018, San Mateo County voters approved Measure W, a 30-year half cent sales tax, from July 1, 2019, through June 30, 2048, to fund and leverage additional funding for transportation projects and programs in San Mateo County that are consistent with the Measure W Congestion Relief Plan. The San Mateo County Transit District (District) levies this tax and administers investments for the 50 percent of the proceeds assigned to the County Public Transportation Systems category in the Congestion Relief Plan. The TA is responsible for administering the remaining 50 percent of funds assigned to:
Countywide Highway Congestion Improvements; Local Safety, Pothole and Congestion Relief Improvements including Grade Separations, Bicycle and Pedestrian Improvements, and Regional Transit Connections.
Historically, the TA has executed separate funding agreements and memoranda of understanding (and associated amendments) for each phase of each project funded by Measures A and W. To streamline the contracting process, the TA has developed a new primary grant agreement (PGA) through which the TA and project sponsors will document the structure of their relationships and related obligations. Concise individual project supplements will detail each funded project and any specifically associated requirements during the 10-year term of the PGA.
In order to be eligible for TA Measures A and W funding over the next 10 years, the TA requires sponsors' governing boards to adopt resolutions authorizing the sponsor's chief executive/mayor/chair, or designee, to sign a PGA with the TA.
BUDGET IMPACT:
There is no budgetary impact associated with this administrative action.
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ENVIRONMENTAL DETERMINATION:
Adoption of a Resolution and approval of the Primary Grant Agreement with the San Mateo County Transportation Authority is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – TA Primary Grant Agreement
STAFF CONTACT
Bethany Lopez, Senior Engineer
[email protected]
(650) 522-7313
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CITY OF SAN MATEO
RESOLUTION NO. ____ (2025)
AUTHORIZING EXECUTION OF A PRIMARY GRANT AGREEMENT WITH THE SAN MATEO COUNTY
TRANSPORTATION AUTHORITY FOR FUTURE FUNDING FROM MEASURES A AND W WHEREAS, on June 7, 1988, the voters of San Mateo County approved a ballot measure to allow the collection and distribution by the San Mateo County Transportation Authority (TA) of a half-cent transactions and use tax in San Mateo County for 20 years with the tax revenues to be used for highway and transit improvements pursuant to the Transportation Expenditure Plan presented to the voters (Original Measure A); and
WHEREAS, on November 2, 2004, the voters of San Mateo County approved the continuation of the collection and distribution by the TA of the Measure A half cent transaction and use tax for an additional 25 years to implement the 2004 Transportation Expenditure Plan, beginning January 1, 2009 (New Measure A); and WHEREAS, on November 6, 2018, the voters of San Mateo County authorized a new one-half percent sales tax in San Mateo County for transportation purposes, and tasked the TA with administering four of the five transportation program categories described in the Congestion Relief Plan presented to the voters (Measure W); and
WHEREAS, the City of San Mateo is eligible for funding under certain programs in the 1988 Transportation Expenditure Plan, 2004 Transportation Expenditure Plan, and/or 2018 Congestion Relief Plan; and
WHEREAS, the TA requires the City's governing board to adopt a resolution authorizing the City Manager, or a designee, to sign a Primary Grant Agreement with the TA to receive Measures A and W grants over the next 10 years, and to take any other actions necessary to give effect to this resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. This City Council action approving a Primary Grant Agreement with the San Mateo County Transportation Authority is not a project subject to CEQA review because it consists of a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
2. The City Manager, or designee, is authorized to execute the Primary Grant Agreement with the San Mateo County Transportation Authority to be eligible to receive Measures A and W grants over the next 10 years.
3. Funds awarded by the TA are certified to be used to supplement existing funds for program activities, and will not replace existing funds or resources.
4. The City Manager, or designee, is authorized to take any other actions necessary to give effect to this resolution.
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PRIMARY GRANT AGREEMENT
SAN MATEO COUNTY TRANSPORTATION AUTHORITY
MEASURE A AND/OR MEASURE W FUNDS
This Primary Grant Agreement (Agreement) is made __________________ by and between the San Mateo County Transportation Authority (TA) and the [Project Sponsor] (Sponsor), each of which is referred to herein individually as “Party” and jointly as “Parties.”
RECITALS
WHEREAS, on June 7, 1988, the voters of San Mateo County approved a ballot measure to allow the collection and distribution by the TA of a half-cent transactions and use tax in San Mateo County for 20 years with the tax revenues to be used for highway and transit improvements pursuant to the Transportation Expenditure Plan presented to the voters (Original Measure A); and
WHEREAS, on November 2, 2004, the voters of San Mateo County approved the continuation of the collection and distribution by the TA of the Measure A half cent transaction and use tax for an additional 25 years to implement the 2004 Transportation Expenditure Plan, beginning January 1, 2009 (New Measure A); and
WHEREAS, on November 6, 2018, the voters of San Mateo County authorized a new one-half percent sales tax in San Mateo County for transportation purposes, and tasked the TA with administering four of the five transportation program categories described in the Congestion Relief Plan presented to the voters (Measure W); and
WHEREAS, the TA and Sponsor desire to enter into this Agreement to establish the process, terms and conditions governing the allocation and expenditure of Measures A/W Funds by Sponsor for capital projects.
Now therefore, the Parties agree as follows:
SECTION 1: Form of Agreements
1.1. Primary Grant Agreement. This Primary Grant Agreement outlines the general terms and conditions applicable to all TA allocations of Measures A/W Funds to Sponsor for capital projects. As allocations are made, the TA and Sponsor will enter into subsequent arrangements for each allocation (Project Supplements). From time to time the Parties may enter into Project Supplements with third parties for cosponsored projects.
1.2. P
roject Supplements . Each Project Supplement will be substantially in a form attached hereto as described in Exhibit A, "Form of Project Supplements " and will be attached to this Agreement and incorporated herein by this reference.
SECTION 2: Term and Termination
2.1. Term. The term of this Agreement will commence on Execution Date and will terminate after 10 years, unless terminated by Sponsor or the TA pursuant to this Section 2. Work begun under the Agreement will continue to be governed by this Agreement until the Scope of Work is complete.
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2.2. Sponsor’s Right to Terminate; Repayment upon Termination. Sponsor may at any time terminate the Agreement or a Project Supplement by giving ten (10) days’ written notice to the TA of its election to do so. Upon such termination, Sponsor will not be reimbursed for any further Scope of Work Costs associated with the Agreement or the Project Supplement, as applicable, and will reimburse the TA for all monies paid by the TA and costs incurred by the TA in connection with the applicable Scope of Work as well as all reasonable costs and expenses incurred to effect such termination within ninety (90) days of the TA’s submission to Sponsor of a detailed statement of such payments and costs.
2.3. Ter mination by the TA . The TA may terminate this Agreement or a Project Supplement, with or without cause, by giving ten (10) days’ written notice of such termination.
If the TA terminates the Agreement for Sponsor’s default, Sponsor will reimburse the TA for all funds paid to Sponsor in connection with all Scopes of Work, and for all costs incurred by the TA in connection with the Scope of Work as well as all reasonable costs and expenses incurred to effect such termination, within ninety (90) days of the TA’s submission to Sponsor of a detailed statement of such payments and costs.
If the TA terminates a Project Supplement for Sponsor’s default, Sponsor will reimburse the TA for all funds paid to Sponsor in connection with the Scope of Work for the applicable Project Supplement, and for all costs incurred by the TA in connection with the Scope of Work as well as all reasonable costs and expenses incurred to effect such termination, within ninety (90) days of the TA’s submission to Sponsor of a detailed statement of such payments and costs.
If the TA terminates the Agreement or a Project Supplement for convenience, the TA is obligated to pay to Sponsor all costs and expenses incurred thereunder by Sponsor up to the date of notice of termination, as well as all reasonable costs and expenses incurred to effect such termination.
2.4. Expiration/Suspension of TA’s Financial Obligations. Any and all financial obligations of the TA pursuant to this Agreement expire upon the expenditure of TA’s maximum contribution to each Scope of Work as established in each Project Supplement or the conclusion of the Term as defined in Section
2.1, whichever occurs
first. The TA reserves the right to suspend its financial obligation, with ten (10) days’ advance notice, if Sponsor identifies a risk of not being able to complete a Scope of Work within budget. If Sponsor cannot provide a credible funding plan acceptable to the TA to fund and complete each Scope of Work, the Sponsor will be in default and the TA may terminate this Agreement. If Sponsor identifies a risk of not being able to complete each Scope of Work within budget, failure to report such risk to the TA constitutes default and is cause for termination under Section 2.3.
2.5. Supplementing Existing Revenue. Sponsor agrees that it will use funds provided pursuant to this Agreement to supplement existing revenue. Sponsor will not use Measures A/W Funds to replace other local taxes or revenues already programmed and available for use for the same purpose. Sponsor will use funds provided pursuant to this Agreement only for the Scope of Work for each Project Supplement.
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2.6. Misuse of Funds. If the TA determines that Sponsor has used Measures A/W Funds other than for the approved Scope of Work or Project Costs, the TA will notify Sponsor of its determination. Within thirty (30) days of notification Sponsor will either (a) repay such funds to the TA, or (b) explain in writing how the funds in question were spent for the approved Scope of Work. The TA will respond to Sponsor’s written explanation within thirty (30) days of receipt. Unless otherwise stated in the response, the TA’s response will be final, and Sponsor will repay any funds used other than for the approved Scope of Work within thirty (30) days.
SECTION 3: Time of Performance
3.1. Time of Performance. The time of performance will be specified in each Project Supplement (Time of Performance).
3.2. Ti me Extension. If the Scope of Work cannot be completed within the Time of Performance as defined in Section 3.1, Sponsor must submit a request in writing to the TA no later than six (6) months before the Time of Performance for an extension for the Time of Performance. The TA will review the request and may grant the extension via a letter of concurrence if it is justified in TA’s sole and complete discretion. Extensions longer than one (1) year will require a formal amendment to the Project Supplement.
Costs incurred for the Scope of Work after the Time of Performance are at risk of denial for reimbursement by the TA. The unreimbursed portion of Measures A/W allocation will be retained by the TA for the Measures A/W Program.
SECTION 4: Insurance
4.1. Insurance. For the purposes of this Section, “Entity” is defined as any entity designing, approving designs and/or performing each Scope of Work specified in the Project Supplements funded by this Agreement. Entities may include Sponsor, a contractor of Sponsor, another body on behalf of which Sponsor submitted its funding application, and/or a contractor of such other body.
For each Project Supplement, all Entities will provide the appropriate insurance covering the work being performed as specified in the Project Supplement. The insurance requirements specified in this Section will cover each Entity’s own liability and any liability arising out of work or services of Entity subcontractors, subconsultants, suppliers, temporary workers, independent contractors, leased employees, or any other persons, firms or corporations (hereinafter collectively referred to as “Agents”) working on each Project (as defined in each Project Supplement). If Sponsor itself is an Entity, Sponsor must also provide its own insurance meeting the requirements of this Section. a) Minimum Types and Scope of Insurance. Each Entity is required to procure and maintain at its sole cost and expense insurance subject to the requirements set forth below. Such insurance will remain in full force and effect throughout performance of the Scope of Work. All policies will be issued by insurers acceptable to the TA (generally with a Best’s Rating of A-10 or better). Each Entity is also required to assess the risks associated with work to be performed by Agents and to require that Agents maintain adequate insurance coverages with appropriate limits and endorsements to cover such risks. To the extent that its Agent does not procure and maintain such insurance coverage, an Entity is responsible for and assumes any and all costs and expenses that may be
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incurred in securing said coverage or in fulfilling Entity’s indemnity obligations as to itself or any of its Agents in the absence of coverage. Entities may self-insure against the risks associated with the Scope of Work, but in such case, waive subrogation in favor of the TA respecting any and all claims that may arise. i. Workers’ Compensation and Employer’s Liability Insurance. Worker’s Compensation coverage must meet statutory limits and Employer’s Liability Insurance must have minimum limits of $1 million. Insurance must include a Waiver of Subrogation in favor of the TA. ii. C
ommercial General Liability Insurance. The limit for Commercial General Liability Insurance will be specified in each Project Supplement.
Commercial General Liability Insurance must be primary to any other insurance, name the TA as an Additional Insured, include a Separation of Interests endorsement and include a Waiver of Subrogation in favor of the TA.
iii. B usiness Automobile Liability Insurance. The limit for Business Automobile Liability Insurance will be specified in each Project Supplement. Insurance must cover all owned, non-owned and hired autos, and include a Waiver of Subrogation in favor of the TA. iv. P roperty Insurance . Property Insurance must cover an Entity’s and/or Agent’s own equipment as well as any materials to be installed. Property Insurance must include a Waiver of Subrogation in favor of the TA. v. P rofessional Liability Insurance. If specified in a Project Supplement, Professional Liability insurance should cover each Entity’s and any Agent’s professional work on the Project.
vi. C yber Liability Insurance . If specified in a Project Supplement, and if contract deals with Personally Identifiable Information (PII), then Professional Liability Insurance policy, should also include coverage for Cyber risk coverages including Network and Internet Security Liability coverage, Privacy coverage and Media coverage.
vii. E mployee Theft Insurance/Crime Insurance. If specified in a Project Supplement, then an Employee Theft Insurance policy covering the loss of money, securities or other property resulting from theft by employees.
The policy should include Third-Party Crime or Client Crime coverage viii. C ontractors’ Pollution Liability Insurance and/or Environmental Liability Insurance. If specified in a Project Supplement, Contractors’ Pollution Liability Insurance and/or Environmental Liability insurance should cover potential pollution or environmental contamination or accidents. The limit for Pollution and/or Environmental Liability Insurance in each appropriate contract and subcontract should not be less than $1 million. Such insurance must name the TA as an Additional Insured and include a Waiver of Subrogation in favor of the TA.
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ix. Railroad Protective Liability Insurance. Insurance is required if the Project will include any construction or demolition work within 50 feet of railroad tracks. The limit for Railroad Protective Liability Insurance in each appropriate contract and subcontract cannot be less than $2 million per occurrence and $6 million annual aggregate. On the Entity’s Commercial General Liability insurance policy, the contractual liability exclusion for liability assumed shall be deleted.
b) S pecial Requirement for Caltrain Shuttles. If Sponsor and/or Entity is operating shuttle(s) with the Caltrain logo on the vehicle(s) or on any shuttle public information materials, the Commercial General Liability, Business Automobile, and Pollution and/or Environmental Liability (if applicable) policies also must name as Additional Insureds: the Peninsula Corridor Joint Powers Board, the San Mateo County Transit District, the Santa Clara Valley Transportation Authority, the City and County of San Francisco, TransitAmerica Services, Inc. or any successor Operator of the Service, and the Union Pacific Railroad Company and their respective directors, officers, employees, volunteers and agents while acting in such capacity, and their successors or assignees, as they now, or as they may hereafter be constituted, singly, jointly or severally. c) E
xcess or Umbrella Coverage. Sponsor and/or any other Entity may opt to procure excess or umbrella coverage to meet the above requirements, but in such case, these policies must also satisfy all specified endorsements and stipulations for the underlying coverages and include provisions that the policy holder’s insurance is to be primary without any right of contribution from the TA. d) D eductibles and Retentions . Sponsor must ensure that deductibles or retentions on any of the above insurance policies are paid without right of contribution from the TA. Deductible and retention provisions cannot contain any restrictions as to how or by whom the deductible or retention is paid. Any deductible or retention provision limiting payment to the named insured is unacceptable.
In the event that any policy contains a deductible or self-insured retention, and in the event that the TA seeks coverage under such policy as an additional insured, Sponsor will ensure that the policy holder satisfies such deductible to the extent of loss covered by such policy for a lawsuit arising from or connected with any alleged act or omission of the Entity or Agents, even if neither the Entity nor Agents are named defendants in the lawsuit.
e) Claims Made Coverage. If any insurance specified above is provided on a claim- made basis, then in addition to coverage requirements above, such policy must provide that:
i. Policy retroactive date coincides with or precedes the Entity’s start of work (including subsequent policies purchased as renewals or replacements).
ii. Entity will make every effort to maintain similar insurance for at least three (3) years following Project completion, including the requirement of adding all additional insureds.
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iii. If insurance is terminated for any reason, each Entity agrees to purchase an extended reporting provision of at least three (3) years to report claims arising from work performed in connection with this Agreement. iv. Policy allows for reporting of circumstances or incidents that might give rise to future claims.
f) Failure to Procure Adequate Insurance. Failure by any Entity to procure sufficient insurance to financially support the indemnification requirements of this Agreement does not excuse Sponsor from meeting all obligations of the indemnification requirements and the remainder of this Agreement, generally. g) Prior to beginning work under this Agreement, Sponsor must obtain, and produce upon request of the TA, satisfactory evidence of compliance with the insurance requirements of this Section.
SECTION 5: Additional Terms Applicable to Sponsor-Performed Capital Projects The following additional terms apply when the Sponsor is performing the scope of work for capital projects as described in each Project Supplement.
5.1. Project Performance. Sponsor will oversee completion of the scope of work for each TA funded project as described in each Project Supplement (Scope of Work).
Sponsor is responsible for procuring and administering any professional service and/or other contracts entered into in connection with each such Scope of Work. Sponsor may appoint a designee or engage contractor(s) to perform work necessary for completion of work, but Sponsor remains responsible to the TA for the completion of each Scope of Work.
5.2. R
equired Approvals. Prior to commencement of each Scope of Work, Sponsor or its designee (e.g., a consultant) will obtain all applicable local, state and federal approvals and permits for each Scope of Work. In addition, Sponsor must comply with all applicable federal, state and local laws and regulations applicable to the Project. All real property appraisals must comply with Uniform Standards of Professional Appraisal Practice (USPAP). Any right-of-way activities involving property on the Caltrans right-of- way must be conducted in accordance with the current version of the Caltrans Right-of- Way manual.
5.3. C ontract Award and Change Orders . Sponsor must comply with state and local agency requirements for the award of any contract(s) for the performance of each Scope of Work and any change orders. As each Scope of Work proceeds, Sponsor must advise the TA of any contracts awarded and change orders as part of the regular progress reporting requirements. Notice of any contracts and change orders provided to the TA will not constitute approval by the TA of the contracts and change orders nor obligate the TA to provide funds in excess of its maximum contribution stated in each Project Supplement.
5.4. P
rogress Reports . Sponsor will prepare and submit to the TA quarterly progress reports during the entire term of each Scope of Work and covering all Scope of Work activities for work completed during the previous month using the template in Exhibit B or in other formats specified by the TA. The reports must describe:
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a) The current status of, and any changes in, scope, schedule, budget, and funding plans of each Scope of Work and each Project;
b) Any risk factors;
c) The work performed during the previous quarter and projected for the next three months;
d) Scope of Work Costs (as defined in Section 5.8 below) projected to be expended during the next three months; and
e) Any other information requested by the TA.
5.5. Final Report. Within ninety (90) days of Sponsor’s final acceptance of each Scope of Work and all incidental work, Sponsor must prepare and submit to the TA a final report detailing the following and all other relevant information:
a) A description of the Project, including a statement detailing the overall progress and success of the Scope of Work and the Project, a compilation of any data collected during the active phase(s) of the Project, and changes/additions to the scope of the Project.
b) Total costs for the Scope of Work, including an accounting of all Measures A/W Funds expended in connection with the Scope of Work, and reflecting any unexpended Measures A/W Funds.
c) An explanation and the status of any outstanding obligations or potential obligations related to the Scope of Work.
d) A discussion of any pertinent issues or problems that arose during the implementation of the Scope of Work.
e) Any copies of press articles, press releases, newsletter articles and any other publicity materials regarding the Project.
f) Written confirmation or, for the final project phase, a Project Close-out form that no further reimbursements associated with the Scope of Work are anticipated and that all draw-down requests have been made.
g) Photographs for all construction projects that satisfactorily demonstrate: 1) site conditions before the project was implemented; 2) work in progress; and 3) completed improvements.
5.6. Funding Commitment. The TA allocates to Sponsor up to the amount specified in each Project Supplement for reimbursement of expenditures related to the Scope of Work (Scope of Work Costs). Sponsor will contribute, or provide for the contribution of matching funds as specified in each Project Supplement. Sponsor also will contribute, or provide for the contribution of the entire amount in excess of the total project cost specified in the Project Supplement needed to complete each Scope of Work. The TA’s funding commitment under this Agreement in no way establishes a right for Sponsor to receive additional funding from the TA. All funding obligations of the TA under this
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Agreement are subject to downward adjustment based on actual sales tax receipts for the fiscal years indicated.
Sponsor will assess and confirm its ability to complete the Scope of Work described in each Project Supplement within budget as part of the quarterly reporting requirements established in 5.4, above. Sponsor must further notify the TA between reporting cycles if Sponsor determines that the budget will not be sufficient to complete each Scope of Work. The TA reserves the right to suspend its funding obligation as set forth in applicable Project Supplements upon such notice, and until Sponsor develops a credible funding plan acceptable to the TA to fund and complete the associated Scope of Work.
5.7. Use of Funds.
a) Measures A/W Funds must be used only for direct eligible costs to complete the Scope of Work. The Sponsor is responsible for demonstrating to the TA that the expenses incurred were necessary to deliver each Scope of Work.
Reimbursement for the following costs will require detailed documentation in accordance with generally-accepted accounting principles:
i. Scope of Work phases or components such as stakeholder/public outreach; development of planning studies, project initiation documents (PID), project study reports (PSR), environmental clearance and mitigation for up to three years following project completion, project approval and environmental document (PA&ED), project design, and plans specifications and estimates (PS&E); regulatory agency review; acquisition of right-of-way; construction, and construction management; ii. Sponsor staff time for Scope of Work implementation; iii. Project administration costs for each Scope of Work under this Agreement.
iv. Costs directly tied to the implementation of each Project Scope of Work as more specifically defined in Exhibit C, “Eligible Costs for Reimbursement,” which is attached to this Agreement and incorporated herein by this reference. Eligible costs are defined in greater detail in Exhibit C. If Sponsor wishes to undertake items of work not covered under each Scope of Work concurrent with performing each Scope of Work, the cost for including and undertaking the additional work must be segregated, and the costs borne exclusively by the Sponsor from a non- Measures A/W Program funding source(s). In the event that an activity is not listed in Exhibit C but Sponsor believes that it is an eligible cost, Sponsor may request that the TA consider reimbursing the Sponsor for the activity. The TA will have sole discretion to grant or deny Sponsor’s requests.
b) The following costs are not eligible for Measures A/W Funds reimbursement:
i. Sponsor’s costs which are unrelated to each Scope of Work; ii. Costs for entering into this Agreement and each Project Supplement;
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iii. Maintenance, rehabilitation, routine operations of each Project or other facilities or programs except as specifically identified in the Scope of Work for each Project Supplement; and
iv. Development of proposals, applications or agreements for Measure A, Measure W, or other funding programs.
5.8. Reimbursement Basis. Unless otherwise specified in the Project Supplement, Sponsor may seek reimbursement for Scope of Work Costs incurred on or after the Execution Date. Scope of Work Costs must be incurred and paid by Sponsor prior to requesting reimbursement from the TA. Sufficient documentation must accompany all requests for reimbursement, including the submittal of all due monthly progress reports.
5.9. A
ccounting and Request for Reimbursement Procedures . Sponsor, in coordination with and to the satisfaction of the TA, will establish procedures for Scope of Work accounting and requests for reimbursement. These procedures will track and reflect the accumulation of the TA’s pro rata share of Scope of Work Costs. Sponsor will detail the TA’s pro rata share of Scope of Work costs for all work funded under this Agreement with each “Reimbursement Claim Form,” which is attached to this Agreement as Exhibit D and incorporated herein, or in other formats specified by the TA.
Sponsor
will maintain all necessary books and records in accordance with generally accepted accounting principles.
5.10. Invoices; Payments.
a) Sponsor must prepare and submit billing statements consistent with the Reimbursement Claim Form with all required supporting documentation.
Supporting documentation may include, but is not limited to, copies of vendor invoices, timesheets, backup documentation, checks, and payment advice, and must include an accounting of the TA’s share of costs for the Scope of Work as contemplated by this Agreement.
b) For any property acquisitions for which Sponsor seeks reimbursement from the TA, Sponsor must provide the following supporting documentation for each property:
i. Copies of the final real estate appraisal and any appraisal review conducted on behalf of Sponsor;
ii. For any right-of-way activities involving property on the Caltrans right-of- way, written confirmation that the acquisition process was conducted in accordance with the then-current version of the Caltrans Right-of-Way manual;
iii. A Phase One Environmental Assessment and any recommended additional testing (unless waived by the TA);
iv. Copy of the offer package provided to the property owner(s);
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v. Copy of the Notice of Exemption or other required document for environmental clearance under CEQA/NEPA for the purchase of the property, and evidence of the date of filing such Notice; and vi. Written justification acceptable to the TA of any settlement at an amount higher than the offer.
c) For each voluntary real property transaction, Sponsor must also provide:
i. Copy of the fully executed purchase and sale agreement; ii. Copy of an executed and recorded deed, in a form consistent with the requirements set forth in the then-current Caltrans Right-of-Way manual; iii. Copy of the Policy of Title insurance; and
iv. Copy of the final closing statement from the escrow. d) For each real property acquisition undertaken through condemnation, Sponsor must also provide:
i. Copy of the recorded Final Order of Condemnation; and ii. Copy of the litigation guarantee issued by a title insurer. e) Sponsor must detail the tasks performed, associated costs, and pro rata share of Scope of Work Costs to be borne by the TA with each reimbursement request. f) The TA will endeavor to disburse reimbursements for approved Scope of Work Costs within thirty (30) days after the TA’s approval of each claim, subject to the limits on the TA’s maximum contribution as established in each Project Supplement. The TA’s obligation to reimburse Scope of Work Costs to Sponsor as provided in this Section is conditioned upon the TA’s prompt receipt of quarterly progress reports from Sponsor.
g) Invoices may be submitted, no more frequently than once a quarter, by e-mail to:
[email protected], [email protected]
, and the designated TA
Project Manager at the email address specified in the Project Supplement.
Sponsor must submit a minimum of one reimbursement claim for each fiscal year (July through June) and no more frequently than quarterly. If Sponsor does not submit a reimbursement claim for two consecutive quarters (six months), then Sponsor will be deemed inactive. If the Sponsor does not submit a reimbursement claim within the next two quarters after being deemed inactive then project may be deprogrammed. Sponsor must submit a letter to the TA to seek administrative approval for an exemption.
5.11. Return of Project Cost Savings. Upon submission of the Final Report, if the total Scope of Work Costs are less than the amount specified in the Project Supplement, Sponsor will return to the TA that proportion of the Project cost savings that is equal to
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the percentage of the original Scope of Work budget that consisted of Measure A/W Funds.
5.12. Indemnity by Sponsor.
Sponsor will indemnify, keep and save harmless the TA and its directors, officers, agents and employees against any and all suits, claims or actions related to the performance of this Agreement, each Scope of Work or each Project including, but not limited to, those arising out of any of the following:
a) Any injury to persons or property that may occur, or that may be alleged to have occurred, arising from the performance of each Project or implementation of this Agreement; or
b) Any allegation that materials or services developed, provided or used for each Project infringe or violate any copyright, trademark, patent, trade secret, or any other intellectual-property or proprietary right of any third party.
Sponsor further agrees to defend any and all such actions, suits or claims and pay all charges of attorneys and all other costs and expenses of defenses as they are incurred.
If any judgment is rendered, or settlement reached, against the TA or any of the individuals enumerated above in any such action, Sponsor will, at its expense, satisfy and discharge the same.
This indemnification will survive termination or expiration of the Agreement.
SECTION 6: Additional Terms Applicable to TA-Performed Capital Projects The following additional terms apply when the TA is performing the scope of work for capital projects as described in each Project Supplement (Scope of Work).
6.1. Funding Commitment. The TA will provide in lieu contributions, expenditures on consultants, and/or funds up to the amount specified in each Project Supplement for the Scope of Work tasks specified in the Project Supplement (Scope of Work Costs).
6.2. C ost Savings. Any cost savings of the funds allocated for each Project Supplement will revert to the applicable program for the TA to reallocate to any eligible project through its usual fund programming and allocation activities.
6.3. I nsufficient Funding . In the event that additional funding is needed to complete the Scope of Work specified in a Project Supplement, the TA will identify the additional amounts needed and review those estimates with the Sponsor. The Parties will work together to identify potential sources of funding, as well as obtain the necessary funds to complete the Scope of Work for the Project Supplement. If additional funding is needed due to a change in the Project Supplement Scope of Work, as requested by the Sponsor, the TA will identify the additional amounts needed and review those estimates with the Sponsor. In such case, it is the responsibility of the Sponsor to identify the potential sources of funding, as well as obtain the necessary funds to complete the changed Project Supplement Scope of Work. The TA may consider requests for additional funding, but is under no obligation to grant such requests.
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6.4. TA Responsibilities. For purposes of delivering the Scope of Work, the TA agrees to perform the following tasks, unless otherwise specified in a Project Supplement:
a) The TA will perform and complete the Scope of Work, either through its own forces or the use of one or more third-party consultants or contractors. b) The TA will make available to the Project up to the amount(s) specified in the Project Supplement(s) for the Scope of Work.
c) For purposes of delivering the Scope of Work, the TA agrees to perform the following tasks, unless otherwise specified in a Project Supplement:
i. Manage the Scope of Work, including developing and carrying out the Scope of Work on schedule and within budget;
ii. Provide technical oversight for performance of the Scope of Work; iii. Lead coordination with Caltrans and/or other permitting agencies as necessary for the Scope of Work;
iv. Obtain the necessary permits and approvals required for the Scope of Work;
v. Procure and administer the consultant/contractor services to complete the Scope of Work;
vi. Organize and facilitate regular meetings of a Project Development Team (PDT), the Sponsor and representatives from involved local and regional entities to provide input and guidance on the Scope of Work; vii. Keep Sponsor apprised of developments, such as award of contracts or potential changes that may affect the scope, schedule, or budget of the Project or Scope of Work; and
viii. Consult with Sponsor where necessary/appropriate. d) To the extent applicable, the TA will execute an agreement with Caltrans for oversight services associated with the Scope of Work.
e) T he TA will prepare and provide to Sponsor status reports including anticipated and expended costs and Scope of Work delivery milestones and schedule forecasts.
f) The TA will review, process, and audit (at its discretion) invoices and other documentation of expenditures for work performed under each Project Supplement. The TA will also track the accumulation and expenditure of funds allocated for Scope of Work, and process other documentation of expenditures in compliance with TA accounting and budgeting requirements.
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6.5. Sponsor Responsibilities. For purposes of delivering the Scope of Work, the Sponsor agrees to perform the following tasks, unless otherwise specified in a Project Supplement:
a) The Sponsor will be responsible for championing the effort of obtaining political and public support for the Project.
b) The Sponsor will be the public face of the Project for purposes of leading outreach efforts to local stakeholders and community members, including coordination of public meetings and solicitation of public comment. c) The Sponsor will provide input and oversight based on local policies and desires regarding the outcome of and deliverables of the Project. d) The Sponsor will actively participate in the PDT meetings related to the Scope of Work.
e) The Sponsor may, at its discretion, review any professional services agreements, change orders and any other agreements that the TA has entered into for the performance of Scope of Work; however the TA retains ultimate authority over contracting and related decisions.
f) The Sponsor may, at its discretion, review the work products and deliverables produced by the TA and/or its contractors/consultants for the Scope of Work, including reports, designs, drawings, plans, specifications, schedules and other materials; however, the TA retains authority to accept or reject contractor/consultant work.
g) The Sponsor will approve or endorse, in writing, the final deliverables or work products produced by the TA and/or its contractors/consultants for the Scope of Work.
h) The Sponsor will review progress reports prepared and provided by the TA. i) The Sponsor may, at its discretion, review and audit invoices and other documentation of the expenditure of funds allocated for the Scope of Work, however the TA retains ultimate authority for expenditure of allocated funds on the Project.
6.6. Indemnification.
a) Each of the Parties will indemnify, hold harmless and defend the other Party and its directors/councilmembers, officers, employees and agents (collectively, "Indemnitees") against all liability, claims, suits, actions, costs or expenses related to performance of the Scope of Work or the Project, including but not limited to those arising from loss of or damage to property, and injuries to or death of any person (including but not limited to the property or employees of each Party) when arising out of or resulting from any act or omission by the indemnifying Party, its agents, employees, contractors or subcontractors in connection with any aspect of the Project, including Project design, construction and/or maintenance.
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b) Each of the Parties will also fully release, indemnify, hold harmless and defend the other Party and Indemnitees from and against any and all claims or suits that may be brought by any of the indemnifying Party's contractors or subcontractors performing work in connection with or related to the Project. c) The indemnifying Party's obligation to defend includes the payment of all reasonable attorneys' fees and all other costs and expenses of suit, and if any judgment is rendered, or settlement entered, against any Indemnitee, the indemnifying Party must, at its expense, satisfy and discharge the same.
Indemnitees may require the indemnifying Party to obtain counsel satisfactory to the Indemnitees.
d) This indemnification will survive termination or expiration of this Agreement.
SECTION 7: Additional Terms Applicable to Shuttle Operations The following additional terms apply to shuttle projects as described in each Project Supplement (Project).
7.1. Sponsor Oversight; Work Plan. Sponsor is responsible for implementation of the Project as described in each Project Supplement. Sponsor assumes responsibility for procuring and administering any professional service and/or other contracts entered into in connection with the Project.
Though Sponsor may appoint a designee or engage contractor(s) to perform work necessary for Project implementation, Sponsor will remain ultimately responsible to the TA for performance of all responsibilities set forth herein.
7.2. Required Approvals. Prior to commencement of each Project, Sponsor or its designee (e.g., a consultant) will obtain all required local, state and federal approvals and permits for Project work. In addition, Sponsor must comply with all federal, state and local laws and regulations applicable to the Project.
7.3. C
ontract Award and Scope Changes. Sponsor must comply with state and local agency requirements for the award and amendment of any contract(s) for the implementation of each Project. Sponsor must advise the TA in writing (electronic mail is acceptable) as soon as possible of any contracts awarded and any amendments thereto, such as for any changes in service. Notice of any contracts and amendments provided to the TA will not constitute approval by the TA nor obligate the TA to provide funds in excess of its maximum contribution stated in the Project Supplement.
7.4. M onthly & Annual Operations Reports . Within eight (8) calendar days after the end of each month a given Project Supplement is in effect, Sponsor or its agent must submit to the TA a monthly operations report (Operations Report) based on National Transit Database (NTD) reporting requirements, attached as Exhibit E, “National Transit Database Reporting Requirements.” The Operations Report must include such items as the average daily ridership of the Project, and the Project’s total boardings, total revenue miles, hours, vehicles in service, road calls, accidents and any other information pertinent to assess the performance of the service for purposes of local, state or federal reporting requirements for the month just ended. Any monthly service mileage and/or hours that were scheduled, but where service was not operated for any reason, must be
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deducted from monthly reporting totals. An explanation for all lost service miles and/or hours must be included in the monthly report. Sponsor or its agent must review all required reporting for accuracy prior to submittal to the TA. The form of all reports must be determined by the TA. Within eight (8) calendar days of the end of the performance of the work under a Project Supplement, and/or any extension thereof, Sponsor or its agent must submit to the TA an annual report on the same statistics. All Operations Reports must be submitted via Excel spreadsheet or other format as approved by the TA to [email protected]
or as specified in the Project Supplement.
7.5. Quarterly Progress Reports. Sponsor must prepare and submit to the TA quarterly progress reports by January 31, April 30, July 31 and October 31 of each year during the entire term of the Project. Reports must be presented in the form provided as Exhibit F, “Quarterly/Annual Shuttle Program Progress Report Form,” which is attached to this Agreement and incorporated herein by this reference, or in other formats specified by the TA. The reports must describe Project performance and expenditures during the previous quarter.
The reports must include actions expected to be taken and any projected changes in the service plan / schedule during the next quarter, and any other information requested by the TA. Additionally, each progress report must include information on any potential issues that may impact any of the performance measures set forth in Exhibit F as well as the ability of Sponsor to meet the conditions outlined in this Agreement.
7.6. Annual Report. By October 1 of each year, Sponsor must provide the TA with an annual report in the form provided as Exhibit F, or in other formats specified by the TA, summarizing the quarterly progress reports from the prior fiscal year.
The reports must include actions expected to be taken and any projected changes in the service plan /schedule for the next year (if the Project is continuing), and any other information requested by the TA. Additionally, each Annual report must include information on any potential issues that may impact any of the performance measures set forth in Exhibit F as well as the ability of Sponsor to meet the conditions outlined in this Agreement for the next year (if the Project is continuing). If the Annual Report is submitted after the second year of the Time of Performance, the Annual Report should include written confirmation that no further reimbursements associated with the Project are anticipated and that all reimbursement requests have been made or are being submitted with the Annual Report.
7.7. Funding Commitment. The TA allocates to Sponsor up to the amount specified in each Project Supplement for reimbursement of expenditures related to the Project (Project Costs). The Sponsor will contribute, or provide for the contribution of matching as specified in each Project Supplement, as well as the entire amount in excess of TA's allocation needed to implement the Project. The TA’s funding commitment under this Agreement in no way establishes a right for the Sponsor to receive additional funding from the TA.
All funding obligations of the TA under this Agreement are subject to downward adjustment based on actual sales tax receipts for the fiscal years indicated, or if Sponsor receives funding for Project Costs from other sources which allow Sponsor to provide more than the matching funds specified in the Project Supplement over the term of the Agreement.
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The Sponsor will assess and confirm its ability to implement the Project within budget as part of the quarterly reporting requirements established in Section 7.5, above. The Sponsor must further notify the TA between reporting cycles if the Sponsor determines that the budget will not be sufficient to implement the Project. The TA retains authority to suspend its funding obligation as set forth in Section 2.4 of this Agreement upon such notice, and until the Sponsor develops a credible funding plan acceptable to the TA to fund and implement the Project.
7.8. Reimbursement Basis. Sponsor may seek reimbursement for Project Costs incurred on or after the Execution Date. Project Costs must be incurred and paid by the Sponsor prior to requesting reimbursement from the TA. Sufficient documentation must accompany all requests for reimbursement, including the submittal of all due operations and progress reports.
7.9. A
ccounting and Reimbursement Procedures. Sponsor, in coordination with and to the satisfaction of the TA, will establish procedures for Project accounting and requests for reimbursement. These procedures will track and reflect the accumulation of the TA’s pro rata share of costs for the Project. Sponsor will detail the TA’s pro rata share of Project Costs for all work funded under this Agreement with each “Reimbursement Claim Form” which is attached to this Agreement as Exhibit D and incorporated herein, or in other formats specified by the TA. Sponsor will maintain all necessary books and records in accordance with generally accepted accounting principles.
7.10. I
nvoices; Payments. Once per quarter following submission of the quarterly progress reports, Sponsor must prepare and submit billing statements consistent with the Reimbursement Claim Form with all required supporting documentation. Supporting documentation may include, but is not limited to, copies of associated vendor invoices, timesheets, backup documentation, checks and payment advice, and must include an accounting of the TA's share of costs for the Project as contemplated by this Agreement.
Claims and supporting documentation for reimbursement may be submitted by e-mail to:
[email protected] and [email protected]
The TA will endeavor to disburse reimbursements for approved Project Costs within thirty (30) days after the TA's approval of each claim, subject to the limits on the TA's maximum contribution as established in the Project Supplement. The TA's obligation to reimburse Project Costs to the Sponsor as provided in this section is conditioned upon the TA’s prompt receipt of reports from Sponsor pursuant to Sections 7.4–7.6, above.
7.11. Indemnity by Sponsor. The Sponsor will indemnify, keep and save harmless the TA (and, if the Project includes shuttle(s) with the Caltrain logo on the vehicle(s) or on any shuttle public information materials, the Peninsula Corridor Joint Powers Board, the San Mateo County Transit District, the Santa Clara Valley Transportation Authority, the City and County of San Francisco, TransitAmerica Services, Inc. or any successor Operator of the Service, and the Union Pacific Railroad Company and each of its/their directors, officers, agents and employees against any and all suits, claims or actions related to the performance of this Agreement including, but not limited to, those arising out of any of the following:
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a) Any injury to persons or property that may occur, or that may be alleged to have occurred, arising from the performance of the Project or implementation of this Agreement; or
b) Any allegation that materials or services developed, provided or used for the Project infringe or violate any copyright, trademark, patent, trade secret, or any other intellectual-property or proprietary right of any third party.
The Sponsor further agrees to defend any and all such actions, suits or claims and pay all charges of attorneys and all other costs and expenses of defenses as they are incurred. If any judgment is rendered, or settlement reached, against the TA or any of the other agencies or individuals enumerated above in any such action, the Sponsor will, at its expense, satisfy and discharge the same.
This indemnification will survive termination or expiration of the Agreement.
SECTION 8: Additional Terms Applicable to All Other Project Supplements for Operations The following additional terms apply to operational projects as described in each Project Supplement (Project).
8.1. Sponsor Oversight; Work Plan. Sponsor is responsible for the completion of the Scope of Work as described in each Project Supplement. Sponsor is responsible for procuring and administering any professional service and/or other contracts entered into in connection with the Scope of Work. Sponsor will oversee completion of the Scope of Work. Sponsor may appoint a designee or engage contractor(s) to perform work necessary for Scope of Work completion, but Sponsor remains responsible to the TA for the completion of the Scope of Work.
8.2. R
equired Approvals . Prior to commencement of the Scope of Work, Sponsor or its designee (e.g., a consultant) will obtain all applicable local, state and federal approvals and permits for the Scope of Work. In addition, Sponsor must comply with all applicable federal, state and local laws and regulations applicable to the Project.
8.3. C
ontract Award and Change Orders . Sponsor must comply with state and local agency requirements for the award of any contract(s) for the performance of the Scope of Work and any amendments. As the Scope of Work proceeds, Sponsor must advise the TA of any contracts awarded and amendments as part of the regular progress reporting requirements pursuant to Section
8.4 below. Notice of any contracts and
amendments provided to the TA will not constitute approval by the TA of the contracts and amendments nor obligate the TA to provide funds in excess of its maximum contribution stated in the Project Supplement.
8.4. Progress Reports. For each of the projects in the Scope of Work, Sponsor will prepare and submit to the TA quarterly progress reports as the program proceeds and covering all Scope of Work activities for work completed during the previous month using the template in Exhibit B, or in other formats specified by the TA. The reports must describe:
a) The current status of, and any changes in, scope, schedule, budget, and funding plans of the Scope of Work and the Project;
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b) Any risk factors;
c) The work performed during the previous quarter and projected for the next three months;
d) Scope of Work Costs (as defined in Section 8.8, below) projected to be expended during the next three months; and
e) Any other information requested by the TA.
8.5. Closeout. Within ninety (90) days of Sponsor’s final acceptance of the Scope of Work and all incidental work, Sponsor must notify the TA with a final closeout letter detailing the following and all other relevant information: Total costs for the Scope of Work, including an accounting of all Measures A/W expended in connection with the Scope of Work, and reflecting any unexpended Measure A/W Funds.
8.6. Fundi ng Commitment. The TA allocates to Sponsor up to the amount specified in each Project Supplement related to the Scope of Work (Scope of Work Costs). Funds cannot be transferred between projects without separate approval from the TA. The TA Executive Officer, or designee, can approve funds transfers administratively with a letter.
The TA’s funding commitment under this Agreement in no way establishes a right for Sponsor to receive additional funding from the TA.
8.7. U se of Funds .
a) Measures A/W Funds must be used only for direct eligible costs to complete the Scope of Work. The Sponsor is responsible for demonstrating to the TA that the expenses incurred were necessary to deliver the Scope of Work. b) The following costs are not eligible for reimbursement:
i. Sponsor’s costs which are unrelated to the Scope of Work; ii. Costs for entering into this Agreement;
iii. Maintenance, rehabilitation, routine operations of the Project or other facilities or programs; and
iv. Development of proposals, applications or agreements for Measure A, Measure W, or other funding programs.
8.8. Indemnity by Sponsor.
Sponsor will indemnify, keep and save harmless the TA and its directors, officers, agents and employees against any and all suits, claims or actions related to the performance of the Scope of Work or the Project including, but not limited to, those arising out of any of the following:
a) Any injury to persons or property that may occur, or that may be alleged to have occurred, arising from the performance of the Project or implementation of this Agreement; or
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b) Any allegation that materials or services developed, provided or used for the Project infringe or violate any copyright, trademark, patent, trade secret, or any other intellectual-property or proprietary right of any third party.
Sponsor further agrees to defend any and all such actions, suits or claims and pay all charges of attorneys and all other costs and expenses of defenses as they are incurred.
If any judgment is rendered, or settlement reached, against the TA or any of the individuals enumerated above in any such action, Sponsor will, at its expense, satisfy and discharge the same. This indemnification will survive termination or expiration of the Agreement.
SECTION 9: Miscellaneous
9.1. Access to Records and Record Retention. At all reasonable times, Sponsor will permit the TA access to all reports, designs, drawings, plans, specifications, schedules and other materials prepared, or in the process of being prepared, for each Scope of Work by Sponsor or any contractor or consultant of Sponsor. Sponsor will also make available to the TA upon request any professional service agreements, change orders and any other agreements that are related to each Scope of Work. Sponsor will provide copies of any documents described in this Section to the TA upon request. Sponsor will retain all records pertaining to each Scope of Work for at least three years after completion of each Project.
9.2. A
udits . The TA, or its authorized agents, may, at any reasonable time during business hours, conduct an audit of Sponsor’s performance under this Agreement.
Sponsor will permit the TA, or its authorized agents, to examine, inspect, make excerpts from, transcribe or photocopy books, documents, papers and other records of Sponsor which the TA reasonably determines to be relevant to this Agreement.
Sponsor will transmit to the TA the Independent Auditor’s Report prepared for Sponsor’s Annual Comprehensive Financial Report within thirty (30) days of receipt by Sponsor and highlight the section that pertains to the Measures A/W Funds.
9.3. No Waiver. No waiver of any default or breach of any covenant of this Agreement by either Party will be implied from any omission by either Party to take action on account of such default if such default persists or is repeated. Express waivers are limited in scope and duration to their express provisions. Consent to one action does not imply consent to any future action.
9.4. A ssignment . Parties are prohibited from assigning, transferring or otherwise substituting their interests or obligations under this Agreement without the written consent of all other Parties.
9.5. G overning Law . This Agreement is governed by the laws of the State of California as applied to contracts that are made and performed entirely in California.
9.6. C ompliance with Laws . In performance of this Agreement, the Parties must comply with all applicable Federal, State and local laws, regulations and ordinances.
9.7. A ccessibility of Services to Persons with Disabilities . The Project implementation must comply with, and not subject the TA or Sponsor to liability under, the Americans
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with Disabilities Act, the California Disabled Persons Act, or any other state or federal laws protecting the rights of persons with disabilities.
9.8. Modifications. This Agreement may only be modified in a writing executed by both Parties.
9.9. A ttorneys’ Fees . In the event legal proceedings are instituted to enforce any provision of this Agreement, the prevailing Party in said proceedings is entitled to its costs, including reasonable attorneys’ fees.
9.10. R
elationship of the Parties . It is understood that this is an Agreement by and between Independent Contractors and does not create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship other than that of Independent Contractor.
9.11. O wnership of Work . All reports, designs, drawings, plans, specifications, schedules, studies, memoranda, and other documents assembled for or prepared by or for, in the process of being assembled or prepared by or for, or furnished to Sponsor under this Agreement, are the joint property of the TA and Sponsor, and will not be destroyed without the prior written consent of the TA. The TA is entitled to copies and access to these materials during the progress of the Project and upon completion or termination of the Project or this Agreement. Sponsor may retain a copy of all material produced under this Agreement for its use in its general activities. This Section does not preclude additional shared ownership of work with other entities under contract with Sponsor for funding of the Project.
9.12. No
n -discrimination. Sponsor and any contractors performing services on behalf of Sponsor will not discriminate or permit discrimination against any person or group of persons on the basis of race, color, religion, national origin or ancestry, age, sex, sexual orientation, marital status, pregnancy, childbirth or related conditions, medical condition, mental or physical disability or veteran’s status, or in any manner prohibited by federal, state or local laws.
9.13. A
ttribution to the TA . Sponsor must include attribution that indicates work was funded with “Measure A Funds” or “Measure W Funds” or “Measures A/W Funds from the TA." This provision applies to any project, or publication, that was funded in part or in whole by “Measure A Funds” or “Measure W Funds” or “Measures A/W Funds." Acceptable forms of attribution include TA branding on Project-related documents, construction signs, public information materials, and any other applicable documents.
Sponsor must comply with the TA's External Attribution Guide which may be updated from time to time and will be available on the TA's website.
9.14. W
arranty of Authority to Execute Agreement . Each Party to this Agreement represents and warrants that each person whose signature appears hereon is authorized and has the full authority to execute this Agreement on behalf of the entity that is a Party to this Agreement.
9.15. S
everability . If any portion of this Agreement, or the application thereof, is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining portions of this Agreement, or the application thereof, will remain in full force and effect.
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9.16. Electronic Signatures. This Agreement may be executed through the use of digital or electronic signatures in accordance with Government Code Section 16.5. The presence of an electronic signature on this Agreement will be construed as the Parties’ consent to do business electronically.
9.17. C ounterparts . This Agreement may be executed in counterparts.
9.18. Entire Agreement. This Agreement constitutes the entire agreement between the Parties pertaining to its subject matter and supersedes any prior or contemporaneous written or oral agreement between the Parties on the same subject.
IN WITNESS WHEREOF, the Parties have hereunder subscribed their names as of the last date written below (Execution Date).
[SPONSOR]
By:
Name:
Its:
Date:
Approved as to Form:
Legal Counsel for the [SPONSOR]
Date:
SAN MATEO COUNTY TRANSPORTATION
AUTHORITY
By:
Name: April Chan
Its: Executive Director
Date:
Approved as to Form:
Legal Counsel for the TA
Date:
Exhibit A: Form of Project Supplements
Exhibit B: Progress Reporting Template
Exhibit C: Permissible Costs for Reimbursement
Exhibit D: Reimbursement Claim Form
Exhibit E: National Transit Database Reporting Requirements Exhibit F: Quarterly/Annual Shuttle Program Progress Report Form
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Exhibit A: Form of Project Supplements
SECTION A: Primary Agreement
The San Mateo County Transportation Authority (TA) and [Project Sponsor] (Sponsor) entered into a Primary Grant Agreement on ________, 20__ (Primary Agreement).
This Project Supplement is entered into on ________, 20__ pursuant to the Primary Grant Agreement and is subject to the terms set forth therein.
SECTION B: Project Background
Measure(s):
☐ Original Measure A
☐ New Measure A
☐ Measure W
Program Category:
Measure A Measure W
☐ Transit
☐ Highways
☐ Local Streets/Transportation
☐ Grade Separations
☐ Pedestrian and Bicycle
☐ Alternative Congestion Relief Programs
☐ Countywide Highway Congestion
Improvements
☐ Local Safety, Pothole & Congestion Relief
Improvements – Local Investment Share
☐ Local Safety, Pothole & Congestion Relief
Improvements – Grade Separation
☐ Bicycle and Pedestrian Improvements
☐ Regional Transit Connections
Program Subcategory (if applicable):
Project: [Add project name]
Scope of Work: [Specify phase(s)]
Scope of Work Costs: [Specify amount programmed and allocated for each phase] TA Technical Assistance (if applicable):
Date Funding Programmed:
Date Funding Allocated:
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Applicable Resolutions (attached):
Additional Terms: The following Agreement Section(s) apply to this Project Supplement:
☐ Section 5 (Additional Terms Applicable to Sponsor-Performed Projects) ☐ Section 6 (Additional Terms Applicable to TA-Performed Projects) ☐ Section 7 (Additional Terms Applicable to Shuttle Operations) ☐ Section 8 (Additional Terms Applicable to All Other Project Supplements for Operations)
SECTION C: Invoices; Payments [ALTERNATIVE CLAUSE TO AGREEMENT SECTION
5.10(a) – DELETE IF NOT APPLICABLE]
Section 5.10(a) of the Agreement does not apply to this Project Supplement. Instead, the TA will make one upfront lump sum payment of $_______ to the Sponsor to complete the Scope of Work.
SECTION D: Matching Funds
Sponsor will contribute, or provide for the contribution of, the entire amount in excess of $________ needed to complete the Scope of Work [and must provide at least __% pro rata share of the Scope of Work Costs.]
OR
Sponsor agrees to contribute the matching funds to the TA in one upfront lump sum payment of $________ (Matching Funds) following Sponsor's approval of an invoice from TA describing the expenses to which the Matching Funds will be applied, subject to the following terms and conditions:
TA agrees that the Matching Funds are to be expended solely for the Project and agrees to: (i) prioritize application of the Matching Funds to expenses under the Scope of Work with the objective of utilizing all of the Matching Funds not later than _________; (ii) promptly return to Sponsor any and all unspent Matching Funds upon termination of the Project Supplement, or, absent termination, that have not been expended for the Project by _________.
SECTION E: Description of Scope of Work
Sponsoring Agency:
Lead/Implementing Agency:
Contact:
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Project Description and Scope of Work:
Project Schedule:
Begin End
Project Budget/ Source of Funding:
Include funding plan for the project defined above, including use of TA Technical Assistance if applicable
* The other fund sources are provided for informational purposes.
Operating Responsibility:
Maintenance Responsibility:
Project Implementation Responsibility:
Project Oversight Responsibility:
SECTION F: Third Party Roles
1. Third Party Roles. The [THIRD PARTY] is responsible for [LIST ALL RELEVANT RESPONSIBILITIES] for the Project.
2. C altrans Roles. Caltrans as owner operator of the facility proposed for modification is responsible for reviewing and approving the [RELEVANT DOCUMENTS] for the Project.
3. Oth er Agreements. A Cooperative Agreement must be executed between Caltrans and the TA that lists the terms and conditions, roles and responsibilities and fee payment associated with Caltrans’ review and approval of the [RELEVANT DOCUMENTS].
SECTION G: Time of Performance
1. Time of Performance. The Scope of Work must be completed no later than the end of __ quarter, Fiscal Year 20__-20__ (the TA's fiscal year runs July 1 through June 30).
2. Ti mely Use of Funds . Sponsor must expend Measures A/W funds expeditiously. If Sponsor fails to invoice the TA for two consecutive quarters, the TA will require a meeting with Sponsor’s executive and Project staff to review project progress. A Project Supplement found to be non-compliant with this requirement may be terminated for default by the TA.
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SECTION H: Notice
Notices. All notices required or permitted to be given under this Agreement, be in writing and delivered by email to the addresses specified below. Notices will be deemed given when the email was sent. A recipient’s failure to acknowledge receipt of the emailed notice will not affect the effectiveness of notice if (a) the sender can show that the notice was properly addressed and sent by email, and (b) the sender did not receive any email system notification that the email could not be delivered.
To TA: San Mateo County Transportation Authority
1250 San Carlos Avenue
P.O. Box 3006
San Carlos, CA 94070-1306
Attn: TA Secretary and Executive Director
Emails:
To [Sponsor]: [Sponsor]
ADDRESS LINE ONE
ADDRESS LINE TWO
Attn: Project Sponsor Contact
TITLE
Email:
In 2025, the TA plans to relocate its administrative building to 166 N. Rollins Road in Millbrae, California and when that occurs, the TA’s address will be at that location.
SECTION I: Insurance [The TA and Sponsor will determine what types and levels of insurance are required for each Project Supplement]
The following types of insurance are required for this Project Supplement. See Section 6 of the Primary Agreement for additional requirements.
Insurance Type Required Coverage Amount
Workers’
Compensation and
Employer’s Liability
Insurance
Yes Statutory limits for Workers’ Compensation and
at least $1 million for Employers Liability.
Commercial General
Liability Insurance
Yes [$1/5/10 million]
• For all projects: $1M for Project Planning,
Project Initiation, Project Approval &
Environmental Design and Right of Way
Phases and for operations.
• For capital projects with budgets of up to
$10M (e.g., road widening): $1M for Design
and Construction Phases.
• For capital projects with budgets between
$10M and $40M (e.g., freeway
interchange): $5M for Design and
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Construction Phases.
• For capital projects with budgets of $40M
or more: $10M limits for Design and
Construction Phases.
Business Automobile
Liability Insurance
Yes [$1/5/10 million]
• For all projects: $1M for Project Planning,
Project Initiation, Project Approval &
Environmental Design and Right of Way
Phases.
• For capital projects with budgets of up to
$10M (e.g., road widening): $1M for Design
and Construction Phases.
• For capital projects with budgets between
$10M and $40M (e.g., freeway
interchange): $5M for Design and
Construction Phases.
• For capital projects with budgets of $40M
or more: $10M limits for Design and
Construction Phases.
• For operations projects: $10M
Property Insurance Yes
Professional Liability
Insurance
[Yes/No] [$1/2/5 million]
For most projects with professional liability
exposure, such as consulting: At least $1
million
For capital projects with some design: At
least $2 million.
For capital projects with significant design:
At least $5M.
Cyber Liability
Insurance
[Yes/No] If contract deals with Personally Identifiable Information (PII): At least $1 million and part of
the Professional Liability Insurance program.
Crime Insurance [Yes/No] If Entity’s employees have access to funds, securities and other property: At least
$250,000 for Employee Dishonesty Insurance
and $250,000 for Third-Party/Client Property.
If Entity has access to significant funds,
securities or other property: Limits should
reflect cumulative exposure.
Contractors’ Pollution
Liability Insurance
and/or Environmental
[Yes/No] At least $1 million
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Liability Insurance
Railroad Protective
Liability Insurance
[Yes/No] At least $2 million per occurrence and $6 million annual aggregate
IN WITNESS WHEREOF, the Parties have hereunder subscribed their names as of the last date written below.
[SPONSOR]
By:
Name:
Its:
Date:
Approved as to Form:
Legal Counsel for the [SPONSOR]
Date:
SAN MATEO COUNTY TRANSPORTATION
AUTHORITY
By:
Name: April Chan
Its: Executive Director
Date:
Approved as to Form:
Legal Counsel for the TA
Date:
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Exhibit B: Progress Reporting Template
REPORTING PERIOD: FROM mm/dd/yyyy TO mm/dd/yyyy
SMCTA Project # 00XXX – [Project Title/Phases]
[Carryover to additional pages as necessary]
Contact: [Name, Title, Phone, email, address]
1) Scope:
[Describe Scope of Work here, specify Project limits, phases of Project. Identify the [Original Measure A and/or New Measure A and/or Measure W] funded components]
Status Summary: [Provide Status]
Issues: [List any issues, i.e. potential scope changes]
____________________________________________________________________________ 2) Schedule: Original Baseline Current Baseline Current Forecast Major Milestones: Start Finish Start Finish Start Finish
[Activity] MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY
[Activity] MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY
[Activity] MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY
[Activity] MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY
Progress This Reporting Period:
[Describe progress and activities]
[Original Measure A and/or New Measure A and/or Measure W] Funds Expended This Reporting Period: $
Future Activities, Next Reporting Period:
[Describe planned future activities]
Projected [Original Measure A and/or New Measure A and/or Measure W] Funds Expenditure Next Reporting Period: $
Issues: [List any issues, such as impacts to schedule]
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_______________________________________________________________________ 3) Scope of Work Total Budget:
____________________________________________________________________________ 4) Scope of Work [Original Measure A and/or New Measure A and/or Measure W] Budget:
Phase/Activity
A B C D E F
Original allocation
(per Project
Supplement)
Current
allocation (Per
Amendments)
Change in
allocation from
Project
Supplement (B-A)
Total
Measure
[A/W]
Expended to
date
% of
current
allocation
expended
(D/B)
% of Work
Completed
#DIV/0!
#DIV/0!
#DIV/0!
Total Scope of
Work $0 $0 $0 $0 #DIV/0!
Issues: [List any issues, i.e. potential cost increases]
____________________________________________________________________________ 5) Funding: [List additional sources as needed, Fill out the following matrix for each phase for the Scope of Work. i.e. environmental, design, etc.]
Issues: [List any issues such as changes in non-Measure [A/W] funding]
Submit Progress Reports To: [email protected] or
SMCTA
Planning & Development
1250 San Carlos Avenue
San Carlos, CA 940701
1 In 2025, the TA plans to relocate its administrative building to 166 N. Rollins Road in Millbrae, California and when that occurs, the TA’s address will be at that location.
A B C D E F
Phase/Activity
Original Budget
(per Funding
Agreement)
Updated Cost
Estimate
Total Change
from Approved
(B-A)
Total Expended
to Date
% of Revised
Budget
Expended
(D/B)
% of Work
Completed
- 0.00% 0.00%
- 0.00% 0.00%
- 0.00% 0.00%
Total Project - - - - #DIV/0! Original Original % Current Current %
Estimated at
Completion EAC %
SMCTA #DIV/0! #DIV/0! #DIV/0!
Others:
Federal (specify) #DIV/0! #DIV/0! #DIV/0!
State (specify) #DIV/0!
Other (specify)
Total - #DIV/0! - #DIV/0! - #DIV/0! Contribution Contribution Contribution
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Exhibit C: Eligible Costs for Reimbursement
Program / Promotions – activities pertaining to marketing/promotional programs detailed in the Scope of Work.
Planning – activities necessary to implement planning studies covered under the Scope of Work.
Project Initiation Documents (PID) – activities necessary to complete PIDs covered under the Scope of Work.
Environmental Studies – environmental studies costs, including determination of the appropriate environmental document, preparation of all preliminary engineering for each alternative, including geomantic layouts, determination of right-of-way needs, environmental technical studies (such as air, noise, energy, cultural resources and hazardous waste), and all other studies or activities necessary to prepare and finalize the appropriate documents for Project and environmental approval.
Design – design activities such as preparation of design studies; materials and foundation reports; drainage, hydrology and hydraulic reports; surveying and mapping; preparation of the plans, specifications and estimate; preparation of bid documents and Project files; preparation of permit applications and maintenance agreements; coordination of agency reviews and any other activities necessary to prepare final plans specifications and estimate (PS&E) for bid advertisement and award; and management oversight of these tasks except as limited in the Agreement.
Right-of-Way Acquisition – all activities related to right-of-way including determination of right- of-way needs; title searches; preparation of appraisal maps, legal descriptions and plat maps; parcel appraisals and appraisal reviews; hazardous materials testing and analysis; preparation of right-of-way acquisition documents; activities involved with acquiring rights-of-way including negotiation with property owners and cost associated with condemnation proceedings (including legal costs, expert witness costs, etc., but not including costs related to claims for inverse condemnation), right-of-way capital costs and cost-to-cure impacts related to the acquisition. To the extent allowed by law, Sponsor will undertake all best efforts so that cleanup of existing hazardous materials will remain the liability of the property owner.
Services provided for right-of-way activities involved with property not necessary for the Measure A or Measure W Highway Program-funded Project as defined in the Scope of Work, and the associated costs for all such property, will be at the sole expense of the Sponsor.
Any property not used for construction of the Project, or used for any purpose other than construction of the Project as defined in the Scope of Work, should be identified and the funding agencies should be informed. Any excess right-of-way will be identified as early as possible in the Project design process and sold. The proceeds from the sale of such property must be returned to the funding agencies, prorated based on the percentage of funds each agency contributed to the purchase of the property.
Construction – construction expenditures for the Project (construction capital, management and inspection, surveys, public outreach, and related activities) that are part of the Scope of Work agreed to by the TA. Sponsor must submit all change orders over $50,000 to the TA for
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review and written approval before the TA will reimburse the Sponsor with Measure A Funds or Measure W Funds.
In addition, Measures A and W Funds are eligible for reimbursement of Sponsor’s Project management oversight expenses associated with the construction of the Project. This would include activities such as construction management inspection, expenses associated with reviewing proposed change orders, and activities involved with submitting final costs to the appropriate agencies to secure other leveraged funds. Expenditure of Measure A and Measure W Funds remains subject to the limits set forth in the Agreement.
The Sponsor may include additional work beyond the Scope of Work for the Project at its own expense. The TA will require these costs to be segregated from the other item work expenses and paid for with non-Measure A or Measure W Highway Program funds.
Miscellaneous – fees from other agencies, including permit fees or reimbursement for review or oversight costs needed for the Project are eligible costs. However, the cost of permits or fees from the Project Sponsor will not be eligible. Utility relocation costs are eligible for reimbursement according to previous agreements establishing rights for those utilities. The costs for specialized equipment for testing, analysis or production of documents for Project- related work are also eligible.
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Exhibit D: Reimbursement Claim Form
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Exhibit E: National Transit Database Reporting Requirements
The NTD was established by Congress to be the Nation’s primary source for information and statistics on the transit systems of the United States. Recipients or beneficiaries of grants from the Federal Transit Administration (FTA) under the Urbanized Area Formula Program (§5307) or Other than Urbanized Area (Rural) Formula Program (§5311) are required by statute to submit data to the NTD. Over 660 transit providers in urbanized areas currently report to the NTD through the Internet-based reporting system. Each year, NTD performance data is used to apportion over $5 billion of FTA funds to transit agencies in urbanized areas (UZAs). Annual NTD reports are submitted to Congress summarizing transit service and safety data.
Below is a partial list of reported elements that may change at any time. For additional information, please go to the National Transit Database website at:
https://www.transit.dot.gov/ntd.
a) Deadhead (Miles/Hours): The miles and hours that a vehicle travels when out of revenue service.
i) Deadhead includes:
1) Leaving or returning to the garage or yard facility; 2) Changing routes;
3) When there is no expectation of carrying revenue
passengers;
ii) However, deadhead does not include:
1) Charter service;
2) School bus service;
3) Operator training;
4) Maintenance training;
b) Fuel Consumed: The quantity of fuel consumed for the service (by fuel type);
c) Mechanical System Failure - Major: A failure of some mechanical element of the revenue vehicle that prevents the vehicle from completing a scheduled revenue trip or from starting the next scheduled revenue trip because actual movement is limited or because of safety concerns; d) Mechanical System Failure - Other: A failure of some other mechanical element of the revenue vehicle that, because of local agency policy, prevents the revenue vehicle from completing a scheduled revenue trip or from starting the next scheduled revenue trip even though the vehicle is physically able to continue in revenue service. Any mechanical problem that delayed service more than five minutes, even if no Road Call was required;
e) Passenger Miles Traveled (PMT): The cumulative sum of the distances ridden by each passenger;
f) Reportable Incident: A safety or security incident occurring on transit property or otherwise affecting revenue service that results in one or more of the following conditions:
i) A fatality confirmed within 30 days of the incident; ii) An injury requiring immediate medical attention away from the scene for one or more persons;
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iii) Property damage equal to or exceeding $25,000;
iv) An evacuation for life safety reasons; or
v) A mainline derailment.
g) Revenue Service (Miles, Hours, and Trips): The time when a vehicle is available to the general public and there is an expectation of carrying passengers. Vehicles operated in fare free service are considered in revenue service.
i) Revenue service includes:
1) Layover / recovery time.
ii) Revenue service excludes:
1) Deadhead
2) Vehicle maintenance testing
3) School bus service, and
4) Charter service.
h) Total Service (Miles or Hours): The time or miles from when a transit vehicle starts (pull -out) from a garage to go into revenue service to the time or miles it returns to the garage (pull-in) after completing its revenue service.
i) Since total service covers the time or miles between:
1) Pullout; and
2) Pull-in;
ii) It therefore includes both:
1) Deadhead; and
2) Revenue service;
i) Unlinked Passenger Trips (UPT): The number of passengers who board public transportation vehicles. Passengers are counted each time they board vehicles no matter how many vehicles they use to travel from their origin to their destination.
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Exhibit F: Quarterly/Annual Shuttle Program Progress Report Form
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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 4 Section Name: CONSENT CALENDAR Account Number: 10-1311 File ID: 25-9593 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: February 18, 2025
SUBJECT:
Legislative Advocacy and Grant Writing Services — Agreement RECOMMENDATION:
Approve an agreement with California Public Policy Group, Inc. (CPPG) for legislative advocacy and grant writing services in the amount of $115,000; authorize the City Manager to exercise up to two 1-year extensions for up to $115,000 each year, for a total not to exceed amount of $345,000 over three years; and authorize the City Manager to execute the agreement in substantially the form presented.
BACKGROUND:
The City Manager’s Office requires legislative advocacy and grant writing services to strengthen the City’s in-house efforts in representing the City in state level legislative matters and in applying for, receiving, and tracking competitive funding opportunities available to the City. For legislative advocacy, an experienced consultant would be able to provide strategic advice and advocacy in support of the City’s state legislative agenda and assist the City with tracking and responding to key legislative proposals. For grant writing support, a consultant would work with a cross-departmental team to identify grants that align with City’s needs, strategize which grants to pursue, secure funding for services and projects that the City would otherwise be unable to undertake or be required to use local tax dollars, and assist with tracking grant funded projects.
In October 2024, City staff released a Request for Proposals (RFP) seeking a qualified firm to provide legislative advocacy and grant writing services and received six proposals. Staff reviewed the Proposals and interviewed the top firms. California Public Policy Group, Inc. (CPPG) provided a comprehensive proposal detailing their approach tailored to the City of San Mateo’s Council priorities and goals. CPPG has been selected due to the firm’s experience, understanding of regional issues, and strategic methodology and approach to services. Staff recommends entering into a one-year agreement with CPPG with the option to renew for two additional 1-year extensions in an amount not to exceed $115,000 annually.
BUDGET IMPACT:
Funds for the first year of the contract, $115,000, have been budgeted within the FY 2024-25 City Manager's Office operating budget. If the option to extend the agreement is exercised, additional funding will be included in future budget cycles.
ENVIRONMENTAL DETERMINATION:
This agreement is 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.
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CITY OF SAN MATEO
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ATTACHMENTS
Att 1 – Agreement
STAFF CONTACT
Andrea Chow, Sustainability Analyst
[email protected]
(650) 522-7007
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6 AGREEMENT WITH CALIFORNIA PUBLIC POLICY GROUP, INC.
FOR PROFESSIONAL CONSULTANT SERVICES
FOR LEGISLATIVE ADVOCACY AND GRANT WRITING SERVICES
This Agreement, made and entered into this day of ____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California (“CITY”), and CALIFORNIA PUBLIC POLICY GROUP, INC. (CPPG), a California Corporation (“CONSULTANT”), whose address is 1127 11TH Street, Suite 300, Sacramento, CA 95814.
RECITALS:
A. CITY desires certain legislative advocacy and grant writing services hereinafter described.
B. CITY desires to engage CONSULTANT to provide these legislative advocacy and grant writing services by reason of its qualifications and experience for performing such services and CONSULTANT has offered to provide the required services on the terms and in the manner set forth herein.
NOW, THEREFORE, IT IS AGREED as follows:
SECTION 1 - SCOPE OF SERVICES
The scope of services to be performed by CONSULTANT under this Agreement is as described in Exhibit A to this Agreement, attached and incorporated by reference.
SECTION 2 - DUTIES OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy and coordination of all work furnished by CONSULTANT under this Agreement. CONSULTANT shall, without additional compensation, correct or revise any errors or deficiencies in its work.
CONSULTANT represents that it is qualified to furnish the services described under this Agreement.
CONSULTANT shall be responsible for employing or engaging all persons necessary to perform the services of CONSULTANT.
CONSULTANT agrees to comply with the City’s minimum wage ordinance as codified in Municipal Code Chapter 5.92, which differs from the state minimum wage and includes a Consumer Price Index escalator.
SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.
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6 CITY shall examine documents submitted by CONSULTANT and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONSULTANT's work.
SECTION 4 - TERM
The services to be performed under this Agreement shall commence on March 1, 2025 and be completed on February 28, 2026. The City Manager may authorize up to two (2) one-year extensions by the CITY, for a total maximum term of three (3) years.
SECTION 5 - PAYMENT
Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONSULTANT a fee in an amount not to exceed $115,000, pursuant to rates stated in Exhibit B to this Agreement, attached and incorporated by reference. Payment for each one-year option to extend will be up to $115,000 per year, for a total not to exceed of $345,000.
SECTION 6 - TERMINATION
Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this Agreement or suspend work on the Project for any reason, upon ten (10) days' written notice to CONSULTANT. CONSULTANT agrees to cease all work under this Agreement upon receipt of said written notice.
Upon termination and upon CITY's payment of the amount required to be paid, documents become the property of CITY, and CONSULTANT shall transfer them to CITY upon request without additional compensation.
SECTION 7 - OWNERSHIP OF DOCUMENTS
All documents prepared by CONSULTANT in the performance of this Agreement, although instruments of professional service, are and shall be the property of CITY, whether the project for which they are made is executed or not.
SECTION 8 - CONFIDENTIALITY
All reports and documents prepared by CONSULTANT in connection with the performance of this Agreement are confidential until released by CITY to the public. CONSULTANT shall not make any such documents or information available to any individual or organization not employed by CONSULTANT or CITY without the written consent of CITY before any such release.
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6 SECTION 9 - INTEREST OF CONSULTANT
CONSULTANT covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this Agreement.
SECTION 10 - CONSULTANT'S STATUS
It is expressly agreed that in the performance of the professional services required under this Agreement, CONSULTANT shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONSULTANT an agent or employee of CITY while providing services under this Agreement.
SECTION 11 - INDEMNITY
CONSULTANT agrees to hold harmless and indemnify CITY, its elected and appointed officials, employees, and agents from and against any and all claims, loss, liability, damage, and expense arising out of CONSULTANT’s performance of this Agreement, except those claims arising out of CITY’s sole negligence or willful misconduct. CONSULTANT agrees to defend City, its elected and appointed officials, employees, and agents against any such claims. The CONSULTANT’S duty to indemnify shall survive expiration or early termination of this Agreement.
SECTION 12 - INSURANCE
CONSULTANT shall procure and maintain for the duration of the contract and three years thereafter (five years for building or major improvements) the insurance specified in Exhibit C to this Agreement.
SECTION 13 - NON-ASSIGNABILITY
Both parties hereto recognize that this Agreement is for the personal services of CONSULTANT and cannot be transferred, assigned, or subcontracted by CONSULTANT without the prior written consent of CITY.
SECTION 14 - RELIANCE UPON PROFESSIONAL
SKILL OF CONSULTANT
It is mutually understood and agreed by and between the parties hereto that CONSULTANT is skilled in the professional calling necessary to perform the work agreed to be done under this Agreement and that CITY relies upon the skill of CONSULTANT to do and perform the work in the most skillful manner, and CONSULTANT agrees to thus perform the work. The acceptance of CONSULTANT's work by CITY does not operate as a release of CONSULTANT from said obligation.
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6 SECTION 15 - WAIVERS
The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.
SECTION 16 - SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.
SECTION 17 - COSTS AND ATTORNEY FEES
Attorney fees in total amount not exceeding $5000, shall be recoverable as costs (by the filing of a cost bill) by the prevailing party in any action or actions to enforce the provisions of this Agreement. The above $5000 limit is the total of attorney fees recoverable whether in the trial court, appellate court, or otherwise, and regardless of the number of attorneys, trials, appeals, or actions. It is the intent of this Agreement that neither party shall have to pay the other more than $5000 for attorney fees arising out of an action, or actions to enforce the provisions of this Agreement.
SECTION 18 - NON-DISCRIMINATION
CONSULTANT warrants that it is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither CONSULTANT nor any of its subcontractors shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act.
SECTION 19 - MEDIATION
Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the State Mediation and Conciliation Service, or other agreed-upon service. The mediator shall be selected by a blind draw.
The cost of mediation shall be borne equally by the parties. Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.
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6 SECTION 20 - LITIGATION
CONSULTANT shall testify at CITY'S request if litigation is brought against CITY in connection with CONSULTANT's services under this Agreement. Unless the action is brought by CONSULTANT, or is based upon CONSULTANT's wrongdoing, CITY shall compensate CONSULTANT for preparation for testimony, testimony, and travel at CONSULTANT's standard hourly rates at the time of actual testimony.
SECTION 21 - NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows:
To CITY: Alex Khojikian
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403
To CONSULTANT: California Public Policy Group, Inc. (CPPG) Attn: Dane Hutchings
1127 11th Street, Suite 300
Sacramento, CA 95814
SECTION 22 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations, and agreements, either written or oral.
This document may be amended only by written instrument, signed by both CITY and CONSULTANT.
SECTION 23 - AUTHORITY TO ENTER INTO AGREEMENT
CONSULTANT has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.
SECTION 24 - GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo.
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6 [SIGNATURE PAGE FOLLOWS]
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6 IN WITNESS WHEREOF, CITY OF SAN MATEO and CPPG, INC. have executed this Agreement the day and year first above written.
CITY OF SAN MATEO CONSULTANT
Alex Khojikian
City Manager
Date Dane Hutchings
President and Secretary
If a Corporation, can be either 1)
President or 2) Vice President
plus an additional corporate
officer (i.e., Secretary, Treasurer)
who shall sign below.
Date
APPROVED AS TO FORM
Mazarin Vakharia
Assistant City Attorney
Date
Attachments:
Exhibit A: Scope of Services
Exhibit B: Fee Rates
Exhibit C: Insurance Requirements
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6 EXHIBIT A
SCOPE OF SERVICES
Legislative Advocacy – Scope of Services
•State Legislative Engagement, Tracking, and Advocacy. CONSULTANT will track, review, analyze any introduced or amended legislation, and advocate on matters impacting airport operations, authority, and autonomy in the State Budget. CONSULTANT will assist in evaluating proposed legislation and identifying priorities based upon the potential impact on the CITY, and CONSULTANT will consult on and develop documents that include draft policy positions, budgetary letters, a customized priority legislative tracking matrix according to the CITY’s specifications, legislative and budget analysis, and background papers to ensure that CITY is kept informed and that the CITY’s perspective is heard by policymakers and stakeholders.
CONSULTANT will assist in the development, drafting, and sponsorship of State legislation and amendments needed to advance CITY goals and priorities. •Relationship Building. CONSULTANT will build on the CITY’s presence in Sacramento to develop robust ties with legislative leaders, the Administration, and key State agencies and staff.
CONSULTANT will continue fostering relationships within the Governor’s Office, HCD, DOF, Caltrans, CalSTA, CTC, and other departments with relevant programs and initiatives. As part of on-boarding, CONSULTANT will schedule one-on-one meetings with specified CITY staff to inventory their individual political relationships with state legislative and Administration officials.
•Federal Monitoring, Review, and Letter Writing. While CONSULTANT is not a registered Federal advocacy firm, CONSULTANT maintains close contact with clients’ Federal representatives, provide client-specific analysis of major Federal legislative packages, and as requested by the CITY, consult and advise in the drafting of letters, CIP requests, and other items. These activities ensure that the CITY are kept apprised of important Federal actions that impact the CITY.
•Participate and Advise in Annual Legislative Strategic Planning. CONSULTANT understands the importance that establishing a proactive strategy plays in the CITY’s overall success. Through a series of “deep dive” meetings, CONSULTANT will work with CITY staff and leadership to discuss and identify who to include internally in discussions to determine goals, objectives, opportunities, and challenges related to the CITY’s priorities. This information will be used to develop an annual and multi-year legislative strategic plan that reflects the CITY’s unique organizational needs.
•Representation. CONSULTANT will represent the CITY at policy-related meetings, conferences, events, regulatory proceedings, legislative hearings, and other appropriate venues to deliver comments and testimony and provide the CITY with a consistent presence in the state Capitol. •Frequent, Consistent Communication. CONSULTANT will deliver monthly policy status reports and detailed recaps in addition to supplemental materials during key legislative milestones (e.g., budget process memos, bill introduction deadlines, end of session etc.). Additionally,
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6 CONSULTANT will conduct monthly Zoom check-ins with CITY staff, increasing frequency upon request during legislative sessions, supported by an updated legislative matrix. These meetings will facilitate in-depth discussions on legislation and the latest developments. •Educational Tour. CONSULTANT will conduct an educational tour in the Capitol to drive awareness on the issues of greatest importance to the CITY based on the CITY’s legislative priorities. This will ensure that the appropriate communication channels with legislative staff and legislators remain open throughout the 2025-2026 legislative session and beyond. •Targeted Engagement with Statewide Local Government Association and Local Agency Partners. CONSULTANT has proven working relationships with the League of California Cities, California, California State Association of Counties, Rural Counties Representatives of California, Urban Counties of California, California Municipal Utilities Association, Association of California Water Agencies, California Special Districts Association, and other statewide local government advocacy organizations. These relationships will ensure that CONSULTANT can effectively communicate the CITY’s policy positions to CONSULTANT’s partners in these associations and agencies — and, when appropriate, incorporate a blended strategy — to achieve success on all matters of import to the CITY.
•FPPC. CONSULTANT will file all required forms on behalf of the CITY, including but not limited to, forms 602 (annual Lobbying Firm Activity Authorization) and 635 (Report of Lobbyist Employer).
Grant Writing – Scope of Services
•Proposal Development: CONSULTANT will provide grant writing and proposal development services from start to finish of the proposal development process. This includes preparing funding abstracts, project narratives, and the required forms and attachments. The grant writer will convene a kickoff meeting for each project and outline expectations for all staff involved in preparing the application. Optimizing the CITY’S use of resources and staff time is an overarching priority for CONSULTANT. CONSULTANT will develop a strategic work plan for the development of each proposal, take the lead in scheduling meetings, and work to obtain relevant information from stakeholders.
•Collaborative Approach: CONSULTANT utilizes a collaborative grant writing process to compile highly competitive proposals. CONSULTANT will use cloud-based document-sharing services to enable real-time feedback from the CITY throughout the proposal development process. When there is an active project, the CONSULTANT’s assigned grant writer will schedule weekly/bi- weekly calls to provide a consistent check-in point.
•Quality Control: Prior to submitting a grant application, the CONSULTANT’s grant writer will review the contents of the narrative and each attachment, check for typographical or grammatical errors, and ensure that all required components for a complete proposal are included in the application package.
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6 •Funding Advocacy: CONSULTANT’s grant writers work in partnership with the CONSULTANT’s Sacramento lobbying team to schedule meetings with state departments to promote awareness of priority projects. CONSULTANT will also notify legislators about grant applications in their districts and request letters of support to include with grant applications. •Progress Monitoring and Grant Tracking: CONSULTANT’s team will provide monthly Grant Activity Reports that identify grant applications in progress, funding opportunities being tracked by CONSULTANT’s team on behalf of the CITY, and the outcomes (awarded/pending/rejected) of submitted grant applications. Tracking lists are organized based on identified focus areas and aligned to the CITY’s priority projects. Each CITY’s tracking list is reviewed monthly for updates, and mid-month grant releases are flagged based on the customized tracking list. •Funding Opportunity Research: CONSULTANT conducts continual and comprehensive research to keep clients informed of upcoming grant opportunities. Proactively identifying funding priorities allows staff and consultants to focus grant-seeking efforts in a way that supports the client’s long-term strategic goals and helps strategically align grant-seeking activities with council-approved priorities. CONSULTANT’S clients receive a monthly “Funding Opportunities Catalog” documenting current and cyclical grant programs administered by federal, state, and regional agencies.
•Monitoring the State Budget: CONSULTANT’s Director of Grant Services works directly with legislative advocates who provide updates and analysis on the state budget and relevant bills, allowing the Grant Services Team to proactively identify upcoming opportunities, the creation of new grant programs, and changes to existing grant programs. •Strategic Planning: CONSULTANT works directly with organizational leadership teams to identify funding and service gaps to inform grant-seeking activities. CONSULTANT will schedule “deep dive” meetings with departments within the CITY’s organization as part of the onboarding process to focus on key priorities and use CITY’s priorities to drive research and grant tracking efforts.
•Grant Readiness: CONSULTANT will support the client’s efforts to proactively identify priority projects and triage potential grant opportunities to support these projects. As part of this effort, CONSULTANT will vet projects for competitive viability to support the development of strong grant applications.
•Peer Review: CONSULTANT are is available to provide peer review for grant applications prepared by the CITY staff.
•Organizational Support: Upon request, CONSULTANT will work with CITY staff to assess areas for improvement in the CITY’s grant-seeking efforts, assess past performance, and support the implementation of best practices to support successful efforts. CONSULTANT will also work with CITY to develop an Interdepartmental Grants Team. This model is intended to bring together the main points of contact in key departments for consistent communication and sharing of upcoming opportunities.
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6 EXHIBIT B
FEE RATES
Monthly flat fee service agreement in the amount of $9,583.00 with an annual not-to-exceed amount of $115,000.00 for services outlined in Exhibit A. This pricing includes all work performed by CONSULTANT primary staff, advisors, and operational/administrative support and also includes all costs associated with the quarterly filings required by the Fair Political Practices Commission.
Services will be invoiced on a monthly basis.
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6 EXHIBIT C
INSURANCE REQUIREMENTS
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
1.Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
2.Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if CONSULTANT has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3.Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
4.Professional Liability (Errors and Omissions): Insurance appropriate to the CONSULTANT’s profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate If the CONSULTANT maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City, its elected and appointed officials, employees, and agents are to be covered as insureds on the auto policy for liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the CONSULTANT; and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CONSULTANT including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the CONSULTANT’s insurance (at least as broad as ISO Form CG 20 10, 11 85 or both CG 20 10 and CG 20 37 forms if later revisions used).
Primary Coverage
For any claims related to this contract, the CONSULTANT’s insurance coverage shall be primary insurance as respects the City, its elected and appointed officials, employees, and agents. Any insurance or self-insurance maintained by the City, its elected and appointed officials, employees, or agents shall be excess of the CONSULTANT’s insurance and shall not contribute with it.
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6 Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the City.
Waiver of Subrogation
CONSULTANT hereby grants to City a waiver of any right to subrogation which any insurer of said CONSULTANT may acquire against the City by virtue of the payment of any loss under such insurance.
CONSULTANT agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the CONSULTANT to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Verification of Coverage
CONSULTANT shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULTANT’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
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CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 5 Section Name: CONSENT CALENDAR Account Number: 10-1511 File ID: 25-9607 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: February 18, 2025
SUBJECT:
Legal Advertising Services – Bid Rejection
RECOMMENDATION:
Reject all bids received for the City's Legal Advertising Services.
BACKGROUND:
The San Mateo City Charter, Section 9.07, specifies that the Council shall periodically call for bids from all newspapers adjudicated to be newspapers of general circulation within the City, or if none, within the County of San Mateo, for the publication of all Ordinances and other legal notices. The Charter also specifies that the contract “shall be awarded to the lowest responsible bidder” and that “the Council may designate the requirements for award of contract” to become the City’s official city newspaper. As the City’s agreement with the San Mateo Daily Journal expired on December 5, 2023, updated procurement was needed.
The City released a Request for Proposals for Legal Advertising Services on September 6, 2024, and entered into a short- term agreement with the San Mateo Daily Journal for services rendered for 2023-2024 on August 15, 2024. Two newspapers submitted proposals: The San Mateo Daily Journal and San Mateo County Times (parent company, Bay Area News Group).
On October 21, 2024, Council approved staff’s recommendation to reject all bids. The information submitted by each newspaper required further clarification. For instance, clarification was needed on: the assumed title of the newspaper under which the vendor would publish the notices; word count and pricing; and evidence of the San Mateo Superior Court’s Judgement and Order designating the newspaper applying as a Newspaper of General Circulation.
A Request for Bids for Legal Advertising Services was released on December 2, 2024, with revisions made to the original advertisement. Changes included: language clearly stating the criteria by which the City would determine the lowest bidder, specifying that lowest vendor would be selected based on cost per line; and the requirement that vendors specify the title of the newspaper in which legal advertisements are published, thus providing a clear distinction between the title of the newspaper, aliases, and/or the parent organization.
Three bids were received from: The San Mateo Daily Journal, San Mateo County Times (parent company, Bay Area News Group), and the San Francisco Examiner (parent company, The Clint Reilly Organization). While further reviewing submissions, it was determined that the bids did not adequately fulfill the criteria outlined in the request. Staff recommends rejecting all bids to allow staff to seek Council direction to designate the requirements for award of contract, per the Charter. A revised request for bids will require vendors to clearly state the name of the paper as it appears to the public, identify similar engagements in San Mateo County, identify circulation and availability of the physical newspaper within the City and the County.
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CITY OF SAN MATEO
Staff would also like to note that the San Mateo Daily Journal’s circulation in San Mateo County was misstated due to a typographical error in the October 21, 2024 agenda report, Attachment 1. Please note that the correct circulation for the San Mateo Daily Journal is 25,000, not 250,000.
BUDGET IMPACT:
There is no budgetary impact for the rejection of bids.
ENVIRONMENTAL DETERMINATION:
This bid rejection is 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. The Request for Bids was published on the City’s Bids webpage beginning on September 6, 2024. Newspapers in circulation in San Mateo were also contacted by email to announce the request for bids.
ATTACHMENTS
Att 1 – Bid Results
STAFF CONTACT
Erin Fellers, Management Analyst I
[email protected]
(650) 522-7066
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LEGAL
ADVERTISING
SERVICES
San Mateo Daily Journal
SMC Times
SF Examiner
Criteria Bidder 1 Bidder 2 Bidder 3
1 Name of
newspaper
submitting bid
San Mateo Daily Journal San Mateo County Times
(Parent company is Bay Area News
Group)
SF Examiner
(Parent company is The Clint Reilly
Organization)
2 Date Submitted 12/16/24, 10:08am
Deadline met
12/3/24 10:31am
Deadline met
12/13/24, 2:51pm
Deadline met
3 Questions
submitted
None None None
4 Pages (not to
exceed 10)
9 (includes adjudication) 8 (includes adjudication) 28 (submission is 5 pages; includes adjudication doc and audit)
5 A.
Newspaper’s
Qualification
and
Experience
Each proposal
should clearly
state the
following:
1. Name of the
proposing
newspaper.
2. Daily
circulation of
the newspaper
1. San Mateo Daily Journal
2. Circulation: #6 days per week on
the following days: Monday,
Tuesday, Wednesday, Thursday,
Friday, Saturday
1. San Mateo County Times
2. Circulation: # 7 days per week on
the following days: Monday,
Tuesday, Wednesday, Thursday,
Friday, Saturday, Sunday.
1. San Mateo Weekly, publishes as
part of the San Mateo and San
Francisco Examiner
2. Circulation: # 4 days per week on
the following days: Sunday,
Wednesday, Thursday, and Friday
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company
(“company”).
3. Location of
the office from
which the work
on this
engagement is
to be
performed.
Average Circulation in the County of
San Mateo: 25,000;
3. Location:
1720 S. Amphlett Blvd., Ste 123, San
Mateo CA 94402
*Legals do not publish on Sundays
Average Circulation in the County of
San Mateo: 3,653 daily / 10,488
Sunday
3. Location:
75 E. Santa Clara St. San Jose, CA
95113
Average Circulation in the County of
San Mateo: 1,980 daily
3. Location:
465 California St Suite 1600, San
Francisco, CA 94104
6 B. Status of
Vendor’s
Newspaper
Each vendor
shall include a
copy of the
official court
order
adjudicating
the newspaper
to be a
newspaper of
general
circulation in
the either the
City of San
Mateo or the
County of San
Mateo.
Adjudication included in submission
Adjudication included in submission
Adjudication included in submission
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7 C. Advertising
Staff
The company
should identify
and keep the
City up-to-date
with the specific
newspaper staff
and contact
information for
those assigned
to legal
advertising.
Joy Uganiza
Jerry Lee
Michelle Sloan
Sean McDermott (cover letter
includes contact for designated
advertising staff)
8 D. Costs
1. The rates to
be charged to
the City shall
be designated
for column
inch.
The proposal
must also state
the number of
lines per
column inch,
as well as
average word
count per
column inch.
1. Rate = $1.63 per line, 12 lines per
column inch
Estimated average per year =
$43,580.66
1. Rate = $1.18 per line, 11 lines per
column inch
Estimated average per year =
$29,038.73
1. Rate = $1.25 per line, 12 lines per
column inch
Estimated average per year =
$33,557.85
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THE LOWEST
BIDDER WILL
BE
DETERMINED
BASED ON THE
COST PER LINE
regardless of
the number of
words per line.
2. Specify any
volume or other
discounts
available to be
offered to the
City.
3. Note any
rush or late
submittal fees,
if applicable.
Note: Vendor
must complete
Attachment A
and submit it
with proposal.
2. None
3. None
Att. A included
2. None
3. None
Att. A included
2. None
3. None
Att. A included
9 E. Publishing
Schedule
Provide details
on your
publishing
Table included in submission
Table included in submission
Table included in submission
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schedule.
Which days do
you publish?
Does your
paper publish a
weekend
edition?
10 F. Deadline for
Publication
Provide details
on your
newspaper’s
deadlines (day
and time of
day) to place
the
advertisement
in the paper.
What is the
turnaround
time, and how
much in
advance does
your paper
need the
advertisement
before
publishing?
Table included in submission
Table included in submission
Table included in submission
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11 G. Process for
Advertisement
Submittal
Succinctly
describe the
steps in the
process for
placing an
advertisement
with your
paper. Do not
include any
marketing
materials.
Process for Advertising Submittal
All legal notices are submitted via
email to [email protected]
and [email protected]
Every li sting is provided a proof via
email as well as an affidavit of
publication via email or snail mail.
Deadline is I pm for the next publish
date for the Classifieds section
(under the section “Public
Notices”).
Deadline is 1 pm two days in
advance for Main News section
display ads.
Holidays often have exceptions to
the above schedule.
Process for Advertisement Submittal
Submissions will be submitted via
email to
[email protected]
m and one of our Legal Coordinators,
Anashia Lloyd or Toni Carranza, will
assist you and process the notice
accordingly.
Process for Advertisement Submittal
Ad Tech website portal process
described in cover letter.
12 H. Similar
Engagements
with Other
Government
Entities
List the most
significant
engagements
performed in
the last five (5)
years that are
most similar to
the
engagement
described in
this Request for
Att. B included in submittal
San Bruno
Redwood City
San Carlos
Att. B included in submission
City of Livermore
City of Pleasanton
City of Alameda
Att. B included in submission
City and County of San Francisco
Daily Journal Corporation
City of San Carlos
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Proposals.
Indicate the
names and
telephone
numbers of
principal client
contacts as
professional
references
using
Attachment B
of this Request
for Proposals.
RFP OPENING: September 6, 2024
RFB OPENING: December 2, 2024
Summary of City of San Mateo’s Total Advertising Expenses, by Year Fiscal Year Total Spent on Advertising
2018 $38,462
2019 $18,280.82
2020 $38,263.15
2021 $34,374.58
2022 $18,305.70
2023 $29,125.66
Average = $27,070
Estimated column inches purchased per year = 2237.19
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CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 6 Section Name: CONSENT CALENDAR Account Number: 10-2312 File ID: 25-9612 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Human Resources Department
MEETING DATE: February 18, 2025
SUBJECT:
SEIU Local 521 Non-Merit Part-Time Unit, Memorandum of Understanding — Adoption RECOMMENDATION:
Approve a Resolution to adopt the Memorandum of Understanding (MOU) with the SEIU Local 521 Non-Merit Part-Time Unit (SEIU NMPT) for a three-year term from October 7, 2024 through June 5, 2027.
BACKGROUND:
The SEIU NMPT represents approximately four hundred (400) part-time per diem employees at any given time. After a two-year extension was agreed upon, the contract with this bargaining unit expired on June 10, 2023. Negotiations with the SEIU concluded in the fall of 2024 and the membership then ratified the proposed changes to their Memorandum of Understanding.
Consistent with the direction provided by the City Council, the agreement includes the following key items:
Salary: The bargaining unit will receive the same cost of living adjustments and any other special adjustments their merit counterparts will receive.
Differential Pay for Working Out of Class Pay: Additional compensation will be available to employees who perform a significant portion but not all duties of a higher classification for a minimum of one (1) shift.
Safety Shoes: The City will provide up to one hundred and twenty-five dollars $125.00 per fiscal year toward the reimbursement of safety shoes, socks, and orthotics for those employees required to don safety shoes, socks and orthotics for their job.
Training: The City will schedule one-time required trainings for all Parks and Recreation current employees similar to the trainings provided to new employees in June 2024 for, implicit bias/pronouns, DEI-related training and a refresher of the California state mandated harassment prevention training. The City will research and incorporate DEI-related training for all new hires.
Other: There are language changes relating to departmental operations and housekeeping language that amend some of the terms and conditions of the contract.
BUDGET IMPACT:
The changes in the MOU will have a negligible impact to the General Fund.
ENVIRONMENTAL DETERMINATION:
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CITY OF SAN MATEO
This Tentative Agreement is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
Exhibit A – MOU Tentative Agreement
STAFF CONTACT
Yumi Maeda, Senior Human Resource Analyst
[email protected]
(650) 522-7279
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CITY OF SAN MATEO
RESOLUTION NO. ____ (2025)
APPROVING AMENDMENTS TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN MATEO AND THE SEIU LOCAL 521 NON-MERIT PART-TIME UNIT
WHEREAS, the SEIU Local 521 Non-Merit Part-Time Unit (SEIU NMPT or Unit) and the City have negotiated changes to the Memorandum of Understanding (MOU) for the Unit; and WHEREAS, the amendments are related to salary, term, other pays and miscellaneous language changes relating to departmental operations, and language clarity for the Unit; and WHEREAS, the parties have met and conferred, and have reached tentative agreement to amend the Unit’s MOU; and
WHEREAS, the Unit has ratified the Tentative Agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. This Tentative Agreement is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
2. The amendments to the Memorandum of Understanding for the SEIU NMPT, set forth in the Tentative Agreements attached as Exhibit A, are approved and summarized as follows:
Term: The contract will be for a period of three years, from October 7, 2024 through June 5, 2027.
Salary: The bargaining unit will receive the same cost of living adjustments and any other special adjustments their merit counterparts will receive.
Differential Pay for Working Out of Class Pay: Additional compensation will be available to employees who perform a significant portion but not all duties of a higher classification for a minimum of one (1) shift.
Safety Shoes: The City will provide up to one hundred and twenty-five dollars $125.00 per fiscal year toward the reimbursement of safety shoes, socks, and orthotics for those employees required to don safety shoes, socks and orthotics for their job.
Training: The City will schedule one-time required trainings for all Parks and Recreation current employees similar to the trainings provided to new employees in June 2024 for, implicit bias/pronouns, DEI-related training and a refresher of the California state mandated harassment prevention training. The City will research and incorporate DEI-related training for all new hires.
Other: There are language changes relating to departmental operations and housekeeping language that amend some of the terms and conditions of the contract.
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CITY OF SAN MATEO and SEIU NON-MERIT PART-TIME UNIT
2024 MOU NEGOTIATIONS
TENTATIVE AGREEMENT
13.0 SICK LEAVE
13.1 Sick Leave
After thirty (30) days of work, non-merit part-time employees shall accrue sick leave at the rate of .03333 hours of sick leave for each hour of work. Credit is not received for time off without pay. After their 90th calendar day of employment, such employees shall be permitted to use up to twenty four (21) forty (40) hours of sick leave per fiscal year in a minimum increment of at least one (1) hour. The maximum sick leave accrual permitted as a of any pay period shall be forty eight (18) hours. Sick 1 avc credit shall not be made—enee—the—maximum—aceumulation—has occurred. The sick leave bank will roll over from year to year but cannot exceed the maximum accrual cap of eighty (80) hours.
An employee can use sick leave for themselves or a family member for the diagnosis, care or treatment of an existing health condition or preventive care or for specified purposes for an employee who is a victim of domestic violence, sexual assault or stalking.
For the SEIU: For the City:
.47
Patrick
Date: Date: 671//Z.r
Exhibit A
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2024 MOU NEGOTIATIONS
TENTATIVE AGREEMENT
10.2 Differential Pay for Working Out of Class Pay
Upon hiring, new employees shall be provided a copy of their classification description as well as have access to their classification description at their work site provided by their employer. If an employe performs a significant portion but not all of the duties of a higher paid classification, the employee may, upon Department Head approval, qualify for a minimum of one (1) shift, qualify for a higher rate to be determined by duties assigned for this work out of class, qualifies for a differential pay rate of the position filled and duties performed assigned-fei-this--wefk-eut-e-f-elass, For the SEIU: For the City:
,../
Patrick Phillips Stacey Cue
Date: l%i/ 2tI Date: 6)//
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CITY OF SAN MATEO and SEIU NON-MERIT PART-TIME UNIT
2024 MOU NEGOTIATIONS
TENTATIVE AGREEMENT
NEW SECTION- 11.0 HOURS OF WORK
NEW LANGUAGE- OVERTIME
11.2 Overtime Pay
Overtime Pay will be paid in accordance with the Fair Labor Standards Act (FLSA).
For the SEIU: For the City:
Patrick PhilliP -s'
Stacey Cue
Date: /7/ 2 LI
Date:
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Stacey Cue -
12 44
Patrick Phillips
CITY OF SAN MATEO and SEIU NON-MERIT PART-TIME UNIT
2024 MOU NEGOTIATIONS
TENTATIVE AGREEMENT
NEW SECTION- 11.0 HOURS OF WORK
NEW LANGUAGE- HOURS OF WORK
11.1 Rest & Meal Periods
Employees shall be provided rest breaks and meal periods as required by the California State law and be compensated in accordance with the Fair Labor Standards Act (FLSA).
For the SEIU: For the City:
Date: b///3 -727-/ Date:
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2024 MOU NEGOTIATIONS
TENTATIVE AGREEMENT
16.2 15.2 Performance Feedback Sessions
After one year of continuous service, an employee who works 400 800 hours per year, may request an employee counseling session for verbal feedback on his/her job performance.
The conversation will be memorialized and placed in the employee's file. The City can perform such an evaluation at any time at its discretion.
For the SEIU: For the City:
Stacey Cue
Ptrick Phillips
Date: •
Date: /9/7
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2024 MOU NEGOTIATIONS
TENTATIVE AGREEMENT
15.0 EMPLOYMENT LEAVE
15.1 Bereavement Leave
In the event of a death in the immediate family, employees may take unpaid leave up to three (3) days, or up to five (5) days at--the-disefetiewef--the-empleyeels-Depar-tilient-14eafl, in the event of a death of an immediate member of his/her family.
Immediate family shall be defined as: spouse, domestic partner, child, foster child or who resided with the employee at the time of his/her death, stepchild, mother, father, stepmother, stepfather, mother-in-law, father-in-law, brother, stepbrother, sister, stepsister, brother-in-law, sister-in-law, grandmother, grandfather, spouse's grandmother, spouse's grandfather, son-in-law, daughter-in-law or grandchildren.
For the SEIU: For the City:
Patrick Phillips
Stacey Cue
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2024 MOU NEGOTIATIONS
TENTATIVE AGREEMENT
16.2 15.2 Performance Feedback Sessions
After one year of continuous service, an employee who works 400 8-0-0 hours per year, may request an employee counseling session for verbal feedback on his/her job performance.
The conversation will be memorialized and placed in the employee's file. The City can perform such an evaluation at any time at its discretion.
For the SEIU: For the City:
Patrick Phillips
Stacey Cue
Date: I-) i t/ Date: 15--7 S,'2y
ke'L
I _
I
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2024 MOU NEGOTIATIONS
TENTATIVE AGREEMENT
2.0 NO DISCRIMINATION
The City and the Union agree that there shall be no discrimination of any kind because of prohibited by applicable state and federal law and there shall be no discrimination because of age in accordance with California Government code Section 12940.
10.0 DIFFERENTIALS AND PREMIUM PAY
10.1 Bilingual Differential
Based upon the City's need and community need and the bilingual language proficiency of the employee and recommendation of the Department Head, the Human Resources Director may approve bilingual premium pay to an employee the employee may request and the Department Head may recommend bilingual premium for an employee. Said premium pay shall be pro rated to the full time payment of Ninety Dollars ($90.00) biweekly. In addition to English speaking skills, an individual must possess either Chinese, Department Head. Approval will only be given where the employee's bilingual skill is regularly used in the course of City business. Approval or rejection by the Department Head will be given within 10 business days of request. Following approval, the bilingual premium pay will be available to all employees who pass a basic proficiency test.
Bilingual premium pay shall be ninety dollars ($90) biweekly and shall become payable the first day of the pay period following proficiency certification. If a bilingual qualified employee works less than full-time, the biweekly differential will be prorated. If an employee is off work for an extended leave (over 30 days), they will not receive the bilingual pay for the remainder of the leave.
In order to ensure that employees retain bilingual proficiency, periodic re-qualification shall may be required and shall be administered by the Human Resources Department. Re- qualification shall not be required more frequently than once each year unless there is a concern about the language proficiency of an employee.
11.0 HOLIDAYS
Beginning January 1, 2009, employees in the SEIU Per Diem Unit who have worked a minimum of eight hundred (800) hours in the preceding fiscal year shall be entitled to Holiday pay. The holidays to be observed are as follows:
Juneteenth, June 19th
Independence Day July 4th
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Labor Day 1st Monday in September
Thanksgiving 4th Thursday in November
Christmas Day December 25th
To be eligible for Holiday pay for time not actually worked, the employee must work be in paid status on their regularly scheduled work day immediately before and their regularly scheduled work day immediately after the holiday (this may or may not be the day adjacent to the holiday).
A qualifying employee regularly scheduled to work on Juneteenth, Independence Day, Labor Day, the Christmas holiday, or Thanksgiving will receive Holiday pay at their base hourly rate of pay for the hours they would have been scheduled (up to a maximum of eight (8) hours). If an employee is scheduled and works part of their regularly scheduled shift on the holiday, they will receive overtime pay at one and a half times their base hourly rate for the hours that they work. If they work part, but not all, of their regularly scheduled shift, they are entitled to holiday pay at their base hourly rate for the remaining hours of their regularly scheduled shift (to a maximum of eight (8) hours).
15.0 EMPLOYMENT LEAVE
15.3 Family Care Leave for Eligible Employees
In accordance with the Federal Family and Medical Leave Act, and the California Family Rights Act, the City will grant job protected unpaid family and medical leave to eligible employees for up to twelve (12) weeks per rolling twelve-month (12) period). An eligible employee is one that has worked twelve hundred and fifty hours in the twelve months preceding application for such leave.
In general, Family Medical Leave is available to employees for: the birth, adoption or placement of a foster child; the diagnosis, care or treatment of an existing health condition of, or preventative care for an employee's family member, as defined in California Labor Code section 245.5(C) care for an immediate family—member—of-the—employee—if-such immediate family member has a serious health condition; or the employee's own serious health condition that makes the employee unable to perform the functions of his/her position.
The City will adhere to applicable Federal and State laws regarding Family and Medical Leave. For specific conditions governing Family Medical Leave please refer to the City Policy.
19.6 Safety Clothing/Equipment (new)
The City will provide up to one hundred and twenty-five dollars $125.00 per fiscal year toward the reimbursement of safety shoes, socks, and orthotics for those employees required to don safety shoes, socks and orthotics for their job. Said reimbursement shall be against original official receipts for safety shoes, socks and orthotic expenditures.
Safety shoes are defined as any Safety Committee recommended shoe. The City shall continue to supply all required safety equipment.
25.0 TERMINATION OF AGREEMENT
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This agreement shall terminate as of 11:59 p.m., June 5-1-0, 20273.
In the event that this Agreement is terminated or expires the salaries and benefits paid on the date of termination shall remain in effect. Negotiations shall establish any changes from the last existing salary and benefits, as well as other conditions of employment. The use of a formula to establish salaries and benefits shall not establish past practice.
The existing and unmodified rules, regulations, resolutions, or ordinances relating to wages, hours and conditions of employment not covered in this Agreement for workers in this Unit shall remain unchanged unless the changes are the result of meeting and conferring as required by law.
For the SEIU: For the City:
Eric Rosenthal
Date: / I5/5 Date:
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LETTER OF UNDERSTANDING
between
City of San Mateo
and
SEIU Non-Merit Part-Tim Unit
City of San Mateo No Discrimination
During the course of the 2024 labor contract negotiations, the parties discussed the City of San Mateo's harassment and discrimination policies and trainings available to bargaining unit employees.
The City commits to schedule one-time required trainings for all Parks and Recreation current employees similar to the trainings provided to new employees in June 2024 for, implicit bias/pronouns, DEI-related training and a refresher of the California state mandated harassment prevention training. As of October 2024, there is no City-wide DEI- related training. The City will research and incorporate DEI-related training for all new hires no later than May 31, 2025. Thereafter, any newly hired employee(s) shall receive DEI-related training as part of new hire onboarding along with the California state mandated harassment prevention training.
DATED \
SEIU NON-MERIT PART-TIME UNIT CITY OF SAN MATEO
By By
Eric Rosenthal Stacey Cue
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CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 7 Section Name: CONSENT CALENDAR Account Number: 10-2312 File ID: 25-9613 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Human Resources Department
MEETING DATE: February 18, 2025
SUBJECT:
San Mateo Police Sergeants’ Association — Memorandum of Understanding Changes RECOMMENDATION:
Adopt a Resolution to amend the Memorandum of Understanding (MOU) with the San Mateo Police Sergeants’ Association to clarify which premiums are included in the MOU overtime calculations.
BACKGROUND:
This Sideletter of Agreement was created to provide clarity that premium rates for employees who work in one of the following special assignments will be included in calculating the MOU overtime rate: Detective Division, Traffic Detail, Motorcycle Patrol Unit, Gang Detail Assignment, Support Services Sergeant, Youth Services Unit, Field Training Sergeant, and Police Administrative Sergeant.
BUDGET IMPACT:
The change in premiums included in the MOU overtime rate will have a minimal impact this fiscal year. Costs incurred in the current fiscal year can be accommodated in the Police Department’s operating budget using salary savings from vacant positions. Overtime will continue to be monitored, and adjustments will be made, if needed.
ENVIRONMENTAL DETERMINATION:
This Sideletter of Agreement is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
Exhibit A – Sideletter of Agreement
STAFF CONTACT
Yumi Maeda, Senior Human Resource Analyst
[email protected]
(650) 522-7279
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CITY OF SAN MATEO
RESOLUTION NO. ____ (2025)
APPROVING AMENDMENTS TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN MATEO AND THE POLICE SERGEANTS’ ASSOCIATION UNIT
WHEREAS, the City of San Mateo negotiated amendments to the Memorandum of Understanding (“MOU”) with the Police Sergeants’ Association Unit (“Unit”); and WHEREAS, the amendments are related to which specific premiums are included in MOU overtime payment rates; and
WHEREAS, the parties have met and conferred, and have reached an understanding on how to amend the Unit’s MOU.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. This Letter of Understanding is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
2. The amendments to the Memorandum of Understanding for the Police Sergeants’ Association, set forth in the Letter of Understanding attached as Exhibit A, are approved and summarized as follows:
It is clarified that the following premiums included with MOU overtime are:
•Detective Division Premium
•Traffic Detail
•Motorcycle Patrol Unit
•Gang Detail Assignment
•Support Services Sergeant
•Youth Services Unit
•Field Training Sergeant
•Police Administrative Sergeant
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PO
Exhibit A
Sideletter of Agreement
Between
Police Sergeants' Unit
and
City of San Mateo
1/24/2025
The Memorandum of Understanding (MOU) between the San Mateo Police Sergeants' Unit (hereafter "Sergeants") and the City of San Mateo (hereafter "City") is set to expire as of 11:59 pm, January 3, 2027. The City and the Sergeants seek to establish clarity around overtime as applicable to certain premiums. Therefore, the following will be added to the MOU and this sideletter of agreement will be effective the full pay period after adoption by the City Council:
Article 15- Overtime
15.4 Overtime worked shall be paid for at one and one-half (1-1/2) times the employee's established rate of pay. Fair Labor Standards Act (FLSA) overtime will be calculated according to FLSA requirements, while MOU overtime will include incentives that have been negotiated to be incorporated into the calculation. Premiums included in the MOU overtime rate are:
• Detective Division
• Traffic Detail
• Motorcycle Patrol Unit
• Gang Detail Assignment
• Support Services Sergeant
• Youth Services Unit
• Field Training Sergeant
• Police Administrative Sergeant
ICE S
.„
EZ 6i II'S' UNIT CITY OF SAN MATEO
(/' (//' Aracelia G. Esparza
Human Resources Director
Sc tt Val ncia
Prii ident, Sergeants' Unit
fd. 41/A- Da ei
Date
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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 8 Section Name: CONSENT CALENDAR Account Number: 10-2011 File ID: 25-9639 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: February 18, 2025
SUBJECT:
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 — Approval RECOMMENDATION:
Accept the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024 BACKGROUND:
The City’s Charter, Section 5.26 requires that the City’s external auditor conduct an annual audit, and the City issue a complete set of financial statements within a reasonable time. The Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024, included as attachments to this administrative report, was presented to the Mayor and the Deputy Mayor in their capacity as a member of the City Council Audit Committee on January 21, 2025. The Audit Committee recommended that the City Council formally accept the ACFR at its regular meeting.
The City's independent auditor, The Pun Group, a firm of licensed certified public accountants, conducts its audits in accordance with generally accepted auditing standards (GAAS). The standards require that the auditors plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. On a sample basis, they examine evidence supporting the amounts and disclosures in the financial statements. The audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation.
The auditor has rendered an unmodified (“clean”) opinion on the City's basic financial statements as of and for the fiscal year ended June 30, 2024.
Management’s Discussion and Analysis
Governmental Accounting Standards require a Management’s Discussion and Analysis (referred to as MD&A) to be included with the audited financial statements, with the intent of giving readers an objective and easily readable analysis of the City’s financial performance for the year. The MD&A includes a discussion of the basic financial statements, some condensed financial information, an analysis of the City’s financial position, and results of operations on both a City-wide and Fund basis. The Management’s Discussion and Analysis begins on page 5 of the ACFR.
Financial Results by Fund
The Fund Financial Statements section, which can be found on pages 35 through 54 of the financial report, presents financial data for the City's major funds, most notably the General Fund.
General Fund
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The General Fund serves as the City’s primary operating fund. In FY 2023-24, it recorded $170.0 million in revenues, $157.6 million in expenditures, and $12.3 million in other financing uses, resulting in a small surplus of $78,000 - essentially a break-even year for the City. As a result, the General Fund balance remained the same at $118.0 million.
Key Financial Highlights:
General Fund revenues totaled $170.0 million, reflecting a $6.4 million increase (3.9 percent percent) from the prior year.
Growth was primarily attributed to increases in investment earnings and charges for services, partially offset by decreases in tax revenues.
•Investment income, up by $8.1 million - from $0.4 million to $8.5 million – was due to higher yields and mark-to- market unrealized gain as of June 30, 2024.
•Charges for services increased by $1.8 million (13.0 percent) to $15.6 million, primarily due to stronger revenues from encroachment permits and golf operations.
•Tax revenues totaled $132.1 million, a $3.2 million decrease (2.4 percent):
Property tax remains the City’s largest revenue source, generating $78.6 million, down $2.0 million from the prior fiscal year. Although secured property tax continued to grow, the decline was due to the shortfalls in Vehicle License Fee (VLF) in-lieu property tax revenue. Sales tax, the City’s second largest revenue, decreased by $1.8 million (6.1 percent) to $27.8 million. The decrease was primarily due to reduced sales tax revenue from general goods and autos, and reduced allocation from the County pool.
Other taxes, primarily consisting of real property transfer tax (RPTT), Transient Occupancy Tax (TOT), business tax and franchise fees, totaled $25.9 million, a slight decrease of $0.2 million. TOT generated $5.3 million, RPTT $8.7 million, business tax $8.5 million, and franchise and other taxes $3.4 million. TOT revenue declined due to the Marriot Hotel closure. RPTT increased by $1.2 million (16 percent) primarily due to receipts of Measure CC tax revenue.
General Fund expenditures totaled $157.6 million, up $7.7 million (5.1 percent) compared to the previous year. The increase was primarily due to negotiated labor cost increases and rising operating expenses linked to inflation. The Police Department’s expenditures were slightly over the budget by $0.6 million, largely due to overtime costs necessary to maintain required staffing levels. Staff will review the Police Department’s overtime budget and adjust future year budgets as needed to align with operational needs and historical trends. Overall, General Fund spending was $2.9 million under budget for FY 2023-24. The favorable budget variance was largely due to vacancy savings. These savings were partially offset by higher costs for contract services, increases in pension and healthcare expenses and salary adjustments due to labor negotiations
General Fund balance remained at $118.0 million, unchanged from last year. From an accounting perspective, the City ended FY 2023-24 in a breakeven position. Revenues totaled $170.0 million, exceeding expenditure ($157.6 million) and other financing uses ($12.3 million), resulting in a small surplus of $78,000. However, while the audited financial statements reflect a balanced year, our budgetary outlook tells a different story. While assessing available resources for spending, the City is facing a $5 million shortfall due to the following factors:
•$3.0 million in mark-to-market unrealized gains were recorded as investment earnings but represent non-cash accounting adjustments to meet the Accounting Standards. They are not spendable funds. •$2.0 million in unspent Measure S fund (Measure S is a General Fund sub-fund) was budgeted for CIP but not yet transferred out from Measure S fund to the CIP fund. These funds are not available for general operating needs.
This distinction between accounting results and budgetary resources is critical for financial planning. While the audit confirms the City financial statements are accurate and presented fairly, our budgeting decisions must reflect the actual resources available for operations. As we continue to manage the current fiscal year budget and prepare for the next
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budget cycle, we will need to address the budget deficit strategically.
Other Major Funds
At the close of FY 2023-24, the General Capital Projects Fund reported a fund balance of $58.8 million, up by $4.6 million (8.5 percent) from the prior year. The fund incurred $26.8 million in capital project expenditures, underscoring the City’s continued investments in our facilities and infrastructure. Project investments included $11.8 million for the citywide street rehabilitation and reconstruction program, $1.7 million for storm and flood control improvements, $2.6 million for parks projects, and $7.9 million for city facilities and technology upgrades.
Proprietary Funds
Proprietary Funds are used to account for activities that are fueled by charges for the services provided by each fund.
Enterprise Funds account for external activities (largely utilities), while Internal Service Funds (ISFs) account for internal (interdepartmental) activities.
The Sewer Fund is the City’s main enterprise fund and should be self-supporting; the service charges to sewer customers generate the revenues needed to support the enterprise’s operations, debt service, and capital needs. •The Sewer Fund’s total net position increased from $335.9 million to $390.6 million, an increase of $54.7 million or
16.3 percent, largely driven by the approved rate increase of 3 percent for fiscal year 2023-24, and the strategic use of the available low-interest-rate loan and bond proceeds to fund the cost of the Clean Water Program. •Cash and investments decreased from $138.4 million to $133.4 million, and restricted cash and investments decreased from $92.2 million to $51.9 million, reflecting loan drawdown to pay for the Clean Water Program and other critical sewer capital projects.
•Total capital assets increased from $699.4 million to $784.2 million, a $84.8 million increase, representing the addition of new capital assets from the Clean Water Program.
For the Sewer Fund, another notable change this year was the Water Infrastructure Finance and Innovation Act (WIFIA) loan amendments. On February 9, 2024, the EPA approved the loan amendments to allow for early draws on the WIFIA loans. Subsequently, San Mateo and Foster City/EMID submitted draw requisitions for the full amount of the WIFIA loans, including $295.5 million for the City. As part of the Clean Water Program’s financing plan, the City used the WIFIA loan proceeds to defease the 2021 Wastewater Revenue Notes, Series B, of $271.6 million. The WIFIA loans bear an interest rate of 1.31 percent, and early draws from this low-interest loan helped the City save on interest costs while providing an additional $15.6 million in working capital for the Clean Water Program.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements provide a comprehensive, long-term overview of a government entity’s overall financial position and operations. They focus on the economic resources of the entity as a whole. These financial statements report not only the City’s current assets and current liabilities, but also its long-term assets and liabilities, such as unfunded pension liabilities. The government-wide financial statements can be found on pages 29 through 33 of the financial report.
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.
As of June 30, 2024, the City's entity-wide net position totaled $860.8 million, reflecting an increase of $73.5 million from the prior year. This is due to total revenues of $322.10 million exceeding total expenditures $248.60 million.
The City’s net pension liability increased by $8.7 million (3.1 percent), from $278.80 million to $287.5 million. This modest increase was primarily due to CalPERS’ improved investment performance. The City’s FY 2023-24 net pension liability was
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based on the CalPERS Actuarial Valuation as of June 30, 2023, rolled forward to June 30, 2024. CalPERS reported a 5.8 percent investment return for FY 2022-23, only slightly below the expected rate of return of 6.8 percent. Despite missing the target, the smaller-than-expected gap helped stabilize the City's pension obligations.
BUDGET IMPACT:
The recommended action has no budget impact.
ENVIRONMENTAL DETERMINATION:
This report is 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, 2024
STAFF CONTACT
Karen Huang, Finance Director
[email protected]
(650) 522-7110
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CITY OF SAN MATEO
YEAR ENDING JUNE 30, 2024
Annual
Comprehensive
Financial Report
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City of San Mateo
San Mateo, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Prepared by
Finance Department
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City of San Mateo
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
i
Page
INTRODUCTORY SECTION (Unaudited)
Table of Contents ........................................................................................................................................................ i Letter of Transmittal ................................................................................................................................................... v Directory of City Officials ................................................................................................... .....................................xiv Map of City’s Location .............................................................................................................................................xv Organizational Chart .................................................................................................................................................xvi GFOA Certificate of Excellence in Financial Reporting ...........................................................................................xvii
FINANCIAL SECTION
Independent Auditors’ Report ................................................................................................................................ 1
Management’s Discussion and Analysis – Required Supplementary Information (Unaudited) ...................... 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ..................................................................................................... ....................... 30 Statement of Activities ..................................................................................................... ........................... 32
Fund Financial Statements:
Governmental Funds Financial Statements:
Balance Sheet .............................................................................................................. .......................... 39 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ...................................................................... 40 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................... 41 Reconciliation of the Government al Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities a nd Changes in Net Position ..................................................................... 42 Proprietary Funds Financial Statements:
Statement of Net Position .................................................................................................. ................... 45 Statement of Revenues, Expen ses and Changes in Net Position .......................................................... 47 Statement of Cash Flows .................................................................................................... .................. 48 Fiduciary Funds Financial Statements:
Statement of Fiduciary Net Position ........................................................................................ ............. 53 Statement of Changes in Fiduciary Net Position .................................................................................. 54
Notes to the Basic Financial Statements ........................................................................................................ 61
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Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Budgetary Information ........................................................................................................ ............................. 127 Budgetary Comparison Schedules:
General Fund ................................................................................................................ ............................. 128 Schedule of Changes in the Net Pe nsion Liability and Related Ratios ............................................................ 130 Schedules of Contributions - Pension ......................................................................................... ..................... 132 Schedule of Changes in Total O PEB Liability and Related Ratios ................................................................. 134 Schedule of Contributions – OPEB ............................................................................................. .................... 135
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet ..................................................................................................... .................... 140 Combining Statement of Reve nues, Expenditures and Changes in Fund Balances ........................................................................................................... ...................... 145
Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual Schedules:
Police Grants Special Revenue Fund ......................................................................................... ......... 150 Community Development Block Grant Special Revenue Fund ......................................................... 151 HOME Special Revenue Fund .................................................................................................. .......... 152 City Housing Special Revenue Fund .......................................................................................... ........ 153 Low and Moderate Income H ousing Special Revenue Fund .............................................................. 154 Permanent Local Housing Allo cation Special Revenue Fund ............................................................ 155 Gas Tax Special Revenue Fund .......................................................................................................... 156 Road Maintenance and Rehab ilitation Special Revenue Fund ........................................................... 157 Advance Planning Special Revenue Fund ...................................................................................... .... 158 Solid Waste Special Revenue Fund ........................................................................................... ......... 159 Parks and Recreation Special Revenue Fund ...................................................................................... 160 Traffic Impact Fee Special Revenue Fund .......................................................................................... 161 Commercial Linkage Fee Special Revenue Fund ............................................................................... 162 Construction Services Special Revenue Fund .................................................................................... 163 Landfill Bonds Debt Service Fund ........................................................................................... .......... 164 General Obligation Bo nds Debt Service Fund .................................................................................... 165 2% Hotel Tax Capital Projects Fund ......................................................................................... ......... 166
Internal Service Funds:
Combining Statement of Net Position ......................................................................................... .............. 168 Combining Statement of Revenues, Expe nses, and Changes in Net Position ........................................... 170 Combining Statement of Cash Flows ........................................................................................... ............. 172
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Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued):
Fiduciary Funds:
Custodial Funds - Combining Stat ement of Fiduciary Net Position ......................................................... 179 Custodial Funds - Combining Statement of Changes in Fiduciary Net Position ...................................... 180 Private Purpose Trust Funds - Combining Statement of Fiduciary Net Position ...................................... 183 Private Purpose Trust Funds - Combining Statem ent of Changes in Fiduciary Net Position ................... 184
General Capital Projects Fund:
Schedule of Assessments and Impact Fees and Related Expenditures ..................................................... 187
STATISTICAL SECTION (Unaudited)
Table of Contents ................................................................................................................................................... 191
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................ .......... 192 Changes in Net Position – Last Ten Fiscal Years .............................................................................. .............. 194 Governmental Activities Tax Revenues by Source – Last Ten Fiscal Years .................................................. 199 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................................. .. 200 Changes in Fund Balances of Government al Funds – Last Ten Fiscal Years ................................................. 202
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ........................... 204 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................................ . 205 Principal Property Taxpayers – Cu rrent Year and Nine Years Ago ................................................................ 206 Property Tax Levies and Collecti ons – Last Ten Fiscal Years ........................................................................ 207
Debt Capacity:
Ratios of Outstanding Debt by Ty pe – Last Ten Fiscal Years ......................................................................... 208 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ............................................................ 210 Direct and Overlapping Governmental Activities Debt .......................................................................... ......... 211 Legal Debt Margin Information – Last Ten Fiscal Years ........................................................................ ........ 212 Pledged Revenue Coverage – Last Ten Fiscal Years ...................................................................................... 214
Demographic and Economic Information:
Demographic and Economic Statis tics – Last Ten Fiscal Years ..................................................................... 215 Principal Employers – Current Year and Nine Years Ago ........................................................................ ...... 216
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Page
STATISTICAL SECTION (Unaudited) (Continued)
Operating Information:
Full Time Equivalent City Government Empl oyees by Function – Last Ten Fiscal Years ............................. 217 Operating Indicators by Functi on – Last Ten Fiscal Years ............................................................................. 218 Capital Asset Statistics by Func tion – Last Ten Fiscal Years .......................................................................... 219
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LETTER OF TRANSMITTAL
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Finance Department
330 West 20th Avenue
San Mateo, California 94403
p: 650.522.7100
http://www.cityofsanmateo.org
January 21, 2025
Residents of the City of San Mateo,
Honorable Mayor, and
Honorable Members of the City Council
We are pleased to submit the Annual Comprehensiv e Financial Report (ACFR) for the City of San Mateo, California (City) for the fiscal year ended June 30, 2024. This financial report contains a complete set of audited financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as promulgated by the Governmental Accounting Standards Board (GASB).
This report consists of management’s representati ons concerning the finances of the City and its blended component unit. Responsibility for both th e accuracy of the data and the completeness and fairness of the presentation, including all disclosu res, rests with the management of the City. To provide a reasonable basis for making those representations, management of the City has established a comprehensive internal control framework that is designed to both protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with U.S. G AAP. The first note in th e Notes to the Financial Statements provides a detailed explanation of the Ci ty’s significant accounting policies. Because the cost of internal controls should not outweigh thei r benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City’s Charter, Section 5.26 requires an annual audit of the basic financial statements of the City.
The Pun Group, a firm of licensed certified public accountants, has audited the City’s financial statements. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City and its blended component unit for the fiscal year ended June 30, 2024, are free of material misstatement. The audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements ; assessing the accounting principles used and significant estimates made by management; an d evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified (“clean”) opinion on the City’s basic financial statements as of and for the year ended June 30, 2024. The independent auditors’ report is presented as the first component of the financial section of this report.
The analysis of the financial condition and the result of operations are in the Management’s Discussion and Analysis (MD&A) section immediately following the auditors’ report. This transmittal letter is designed to complement the MD&A and should be read in conjunction with it.
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THE REPORT
The ACFR is presented in three sections:
The Introduction section includes this letter of transmi ttal, City Council introduction, the City’s organizational chart, and certificates of achievement.
The Financial section includes the report of the independent auditors; Management’s Discussion and Analysis (MD&A); the basic financial statem ents, including the government-wide financial statements; and the accompanying notes to the fi nancial statements. The Financial Section also includes the fund financial statements, including the governmental funds financial statements, the proprietary funds financial statements, the fiduciary funds financial statements, and the combining individual funds financial statements for the non-major governmental funds and the internal service funds. Required supplementary information other than the MD&A is also included in the financial section.
The Statistical section includes selected financial and demographic information, presented on a multi-year basis.
Figure 1: ACFR Organization
This ACFR includes all funds of the City and the City’s component unit, which is a legally separate organization for which the City is financially accounta ble or whose relationship with the City is of a nature and significance that would cause the City’s fi nancial statements to be incomplete were it not included.
In addition to the financial audit, the City typically undertakes a single audit in conformance with the Single Audit Act Amendments of 1996 and the Uniform Guidance.
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CITY PROFILE
The City of San Mateo is in San Mateo County and is situated 19 miles south of San Francisco and 30 miles north of San Jose. The City covers an area of 15.4 square miles and inc ludes tidelands from the Bay to the east and coastal mountains to the west . With its Mediterranean climate, residents enjoy warm, sunny summers and mild damp winters, ideal for various recrea tional activities in the City’s many neighborhoods and regional parks.
One of the larger suburbs of the San Francisco Peninsula, San Mateo is bordered by the cities of Burlingame to the north, Foster City to the east, Be lmont to the south, and Hillsborough to the west.
According to the State Department of Finance, th e City San Mateo had an estimated population of 105,600 on January 1, 2024, making it the largest city in San Mateo County.
CITY ORGANIZATION
The City was incorporated in 1894 and was
originally chartered in 1922. The current charter
was adopted in 1971 and revised in 2002. Since
2002, there have been three other voter-approved
amendments to the charter. San Mateo has a
Council-Manager form of government. Five
Council members each serve for four-year terms.
The City recently completed a transition from at-
large elections to district elections, beginning in the November 2022 election, where three of the five
districts were open. The remaining two districts
completed the first district elections in November
2024. The Council selects a Mayor from among its
members each December for a one-year term. The
City Manager is appointed by the Council and
serves as chief executive officer responsible for the day-to-day administration of City affairs. The City Council also appoints a City Attorney. There are tw elve Advisory Boards and Commissions, nine of which are appointed by the City Council.
The City provides a wide range of municipal serv ices, including police, public works, parks and recreation, library, planning and zoning, building, sewer enterprise, street maintenance, economic development, and general administra tive services. The City is part of a joint powers agreement with the cities of Belmont and Foster City that provides fire services to all three cities through the San Mateo Consolidated Fire Department. The City offers 35 parks, six recreation centers, an 18-hole golf course, and three libraries, including a state-of-the-art main library. California Water Service, a private company, provides water to City residents.
The City has an Audit Committee consisting of th e Mayor and Deputy Mayor. The Audit Committee is responsible for the selection and management of the external auditor. The Audit Committee discusses any matters related to the audit with the external auditor and accepts the results of the annual financial audit.
Figure 2: Map
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BUDGET PROCESS
The City operates on a two-year budget cycle. The two-year budget process requires that each department submit two one-year expenditure plans and revenue estimates to the City Council for approval. In each alternate year, the department directors present mid-cycle performance reports to the City Manager and City Council summarizing budget status to date and seeking approval for year- two funding. The City utilizes a five-year plan for capital improvements. The plan serves as a guide for allocation of future resources.
The City maintains budgetary controls that have the objective of ensuring compliance with legal provisions embodied in the annual appropriated budget submitted by the City Manager and adopted by the City Council. The annual operating budge t and the long-term capital improvement plan are adopted on or before June 30th by City Council. All budget amendments require City Council approval. The two-year business plan for operations is adopted in June of every even-numbered year and is amended in the second year of the plan as part of the annual budget development process.
Budgetary control (the level at which expenditur es and encumbrances cannot legally exceed the appropriated amount) is established at the departme nt level within individual funds. Departmental operating budgets may be reallocated among programs within a department and within the same fund, but expenditures may not exceed annually budgeted appropriations at the department/fund level without Council approval. Project- length budgets are adopted for the General Fund, some special revenue funds, and all capital project funds. Ca pital improvement expenditures may not exceed budgeted amounts without Council approval.
LOCAL AND REGIONAL ECONOMY
The information presented in the financial statements is perhaps best understood when it is considered from a broader perspective of the specific environmen t in which the City operates. The City is one of the major centers of economic activity in San Ma teo County, serving as a business, recreational, educational, and cultural hub.
The diverse economy of San Mateo includes a strong employment base in the technology, health care, financial services, government, and retail fields. Companies based in San Mateo include Franklin Templeton, Fisher Investments, Sony Interact ive Entertainment (Sony PlayStation), Roblox, SurveyMonkey, NetSuite, and GoPro. These comp anies contribute significantly to the City's employment base and economic vitality.
The City has a vibrant and pedestrian-friendly downtown that fosters small businesses and community events, enhancing its cultural appeal. Additionally, the Hillsdale Shopping Center and Bridgepointe Shopping Center offer unique retail and entertainmen t experience, attracting visitors from the region, boosting local commerce.
Real Estate Market
San Mateo's real estate market has been a key driver of economic growth, showing consistent strength.
Over the past 13 years, including the pandemic period, property assessed values have steadily increased. According to the San Mateo County A ssessor's Office, the City's total property assessed
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value for FY 2023-24 fiscal year reached $35.4 billion— a 5.5% increase from the previous year. This growth reflects ongoing demand for residential and commercial properties in the area.
However, recent economic conditions have introduced new challenges. In response to high inflation, the Federal Reserve (Fed) has implemented a series of interest rate hikes over the past two years, raising the Federal Funds Rate. Consequently, average 30-year mortgage rates were elevated to 7% (chart 1).
The high borrowing costs have cooled the real estate market. Although inflation is easing, the Fed has only implemented three rate cuts in r e c e n t m o n t h s a n d p l a n s t o s l o w r a t e c u t s i n 2 0 2 5 . W i t h t h i s outlook, borrowing costs are expected to remain elevated in the near term.
Despite these uncertainties, the housing market is somewhat stabilizing, with San Mateo’s median home prices rebounding to $2.2 million (chart 2) in 2024, supported by continued demand and limited housing supply.
Chart 1 – 30-Year Fixed Rate Mortgage Average
Chart 2 – Real Estate Metrics – Single Family Residential, City of San Mateo
Source of information: San Mateo County Association of Realtors $-
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Labor Market
San Mateo's labor market remains robust. As of December 2024, the City's unemployment rate stood at 3.5% (chart 3), matching San Mateo County’s rate (3.5%) and was much better than the State’s rate (5.4%). Nationally, the U.S. unemployment rate stood at 4.1% in December 2024, a modest uptick from the prior year.
Chart 3 – Unemployment Rates
Source of information: EDD
Fiscal Implications and Strategic Considerations
Property tax revenues, a core funding source for Ci ty services, may experience slower growth due to pressures on the housing market from high interest rates. Additionally, rising labor and operational costs could challenge the City's ability to maintain service levels. These conditions will continue to be closely monitored going forward. Proactive financial oversight and strategic planning will ensure the City remains well-positioned to adapt to evolving economic conditions.
CITY FINANCIAL POLICIES & PLAN
Formal financial policies and prudent operating prac tices have enabled the City to maintain core services and minimize the impact of economic fluctuations on residents as much as possible. Formal policies exist in areas such as balanced budgets, revenue diversification, operating expenditures, reserves, investments, and debt.
Trust has been built over the years between the City and the community through establishing and following formal financial policies, as well as mainta ining prudent operating practices. This trust and confidence were demonstrated by the voters in San Mateo, who in November 2009 approved a ¼ cent general sales tax. With this tax set to expire April 2018, the voters again demonstrated their confidence in the City’s financial management by voting in November 2015, approving Measure S to extend the tax until 2048 to fund critical infrastructure and e nhancements to public safety services. San Mateo voters approved Measure CC in November 2022 to increase the real property transfer tax from 0.5% to
1.5% for properties sold or transferred that are valued at $10 million or more.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Dec- 24 State of California 12.2 11.7 10.4 8.9 7.5 6.2 5.5 4.8 4.3 4.0 10.1 7.3 4.2 4.8 5.4 County of San Mateo 8.4 7.5 6.4 5.3 4.2 3.4 3.0 2.7 2.3 2.0 6.9 4.6 2.4 3.0 3.5 City of San Mateo 8.1 7.3 6.2 5.1 4.1 3.3 2.9 2.6 2.1 1.9 6.1 4.1 1.9 3.0 3.5
0.0 2.0
4.0 6.0
8.0 10.0
12.0 14.0
State of California County of San Mateo City of San Mateo
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REVENUE ADMINISTRATION
The City’s two main sources of revenue to fund op erating expenditures are property and sales taxes, which make up over 63 percent of total General Fund revenues. In addition, the City’s revenue administration includes a review of all fees, fines, and charges for services to ensure the charges are meeting cost-recovery goals. One-time and un predictable revenues are spent on one-time expenditures, such as equipment replacement, or transferred to capital improvement funds for repair and rehabilitation projects.
EXPENDITURE ADMINISTRATION
City departments and the Finance Department carefully review expenditure budgets. The department directors are responsible for containing expend itures within their Council-approved budget appropriations. The City maintains an encumbrance accounting system as an additional means of budgetary control. Encumbered amounts in the oper ating budget lapse one year after the end of the fiscal year.
RESERVES
The City Council’s budget policy for the use of re serves varies depending on the reserve type, but generally limits the use of reserves to respond to revenue shortfalls, unanticipated expenditures, severe economic downturns, or natural disasters. The polic y further states that use of reserves should be combined with structural changes to bring the budget back into balance.
The General Fund reserve policy adopted by the City Council seeks to reflect three months of General Fund budgeted operating expenditures, or 25 percent. At the close of FY 2023-24, the General Fund balance was increased from $117.9 million to $118.0 million, of which $0.6 million was restricted for debt services, $11.4 million was assigned for specific purposes, and $105.7 million was unassigned. The unassigned fund balance includes the 25% operating reserve, housing reserve, and rainy-day reserve.
The Sewer Fund has unrestricted net position of $184.6 million, approximately 408% of total operating and debt interest expenses, exceeding City enterprise fund reserve policy of four months of expenditures, or 33 percent. The reserves have been established to provide sufficient liquidity to the Sewer Fund to ensure adequate funding to complete the Clean Water Program.
In addition to maintaining a strong cash posi tion, operating surplus also maintains the Sewer Enterprise Fund’s continued high debt service covera ge ratio at over 2X. Both the cash position and debt service coverage affirm the hi gh-quality credit rating the Sewer Enterprise received of AA- from S&P Global Ratings (formerly known as Standard & Poor’s) and AA rating from Kroll Bond Rating Agency.
There are additional reserves es tablished in the City’s other funds for vehicle and equipment replacement, workers’ compensation, general liability, and capital improvements.
DEBT ADMINISTRATION
The City manages the issuance of new debt and proactively communicates with the investment community in the administration of its outstanding debt. In doing so, the City seeks to ensure that debt is issued prudently and affordably, and bondholders are provided all the information required by the Municipal Securities Rulemaking Board as governed by the Securities and Exchange Commission.
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Proposition 13 amended the State Constitution by requ iring California cities to obtain voter approval prior to issuing general obligation bonds. State statutes further limit general obligation bonded debt to 15% of the assessed value of all real and personal property within the City. As of June 30, 2024, the City’s general obligation bonded debt remaining balance of $14.0 million, including unamortized bond premium, amounted to 0.25% of the $5.6 billion legal debt limit.
According to standard measures used by the primary credit rating agen cies to assess debt (e.g. fund balance as a percent of operating expenses, debt-to-assessed valuation ratios, debt per capita, etc.), the City’s level of direct debt obligations is considered low in comparison to similarly sized cities. Rating agencies cite the City’s strong financial management and prudent fiscal policies as credit strengths. As of June 30, 2024, the City ’s rating for general obligation bonds is AAA by Standard & Poor’s and Aaa f r o m M o o d y ’ s I n v e s t o r S e r v i c e . T h e C i t y o f S a n M a t e o J o i n t P o w e r s P u b l i c F i n a n c i n g A u t h o r i t y manages two bond issues that have $16.3 million in balance outstanding.
Additional information pertaining to the City’s outstanding long-term debt can be found under Long- Term Debt (Note 7) in the Notes to the Basic Financial Statements and in the Statistical Section under Legal Debt Margin information.
CASH MANAGEMENT
The City pools cash from all operating sources to manage cash flow and invest idle funds. The Finance Director serves as the City’s Treasurer and, utiliz ing the services of a third-party asset management advisor, oversees the investment of funds in accordance with the City Council-adopted Investment Policy and Government Code Sections 53601 and 56 535. The City Council receives monthly treasury reports, and reviews and approves the City’s Investment Policy each fiscal year.
LONG-TERM FINANCIAL PLANNING
The City of San Mateo has a long tradition of disciplined and prudent fiscal management. Building on strategies developed during the Great Recession, the City has successfully accumulated substantial reserves to better position its General Fund to be prepared for economic retr action or disaster. The City’s prudent efforts to adopt a reserves policy and accumulate additional reserves during the years of economic prosperity have prov en prescient within context of the immediate and severe financial impact from the pandemic.
Looking ahead, the City recognizes the need to balance financial stability with strategic investments in community services and infrastructure. To maintain this balance, the City will periodically assess reserve policies to ensure adequate savings while identifying opportunities to invest in community enhancements. The City will continue updating th e General Fund's ten-year financial forecast to anticipate and address future fiscal challenges. The City also maintains a five-year capital improvement program to plan and prioritize critical infrastructure projects.
For General Fund operations, revenues and expenditures are being closely monitored, supported by a ten-year forecast to help the organization mainta in a long-term focus and allow sufficient time for thoughtful course corrections in the event of a structural imbalance. Major General Fund revenues will be carefully tracked, particularly in light of un certainties that could impact revenue growth. These uncertainties include VLF shortfall, slowing sales ta x, economic conditions and events that affect Transient Occupancy Tax (TOT) and real property transfer tax revenues.
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AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financia l Reporting to the City for its ACFR for the fiscal year ended June 30, 2023. The Certificate of Achievement is a national award recognizing conformance with the highest standards for preparation of stat e and local government financial reports. To be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized ACFR. This report must satisfy both U.S. GAAP and applicable legal requirements. This was the thirty-fourth consecutive year that the City has received this award. A Certificate of Achievement is valid for one year only. We believe that this FY 2023-24 ACFR continues to conform to the Certificate of Achievement program requirements, and we will subm it it to the GFOA to determine its eligibility for another certificate.
The preparation of this ACFR could not have been accomplished without the efficient and dedicated service of the highly qualified staff in the Finance Department. The dedication and cooperation of staff in all City departments in the administration of financial policies throughout the year is also appreciated. Special thanks go to the City’s Acti ng Accounting Manager, Ha Tran, who oversaw the compilation and review of the financial statements. We also acknowledge the thorough and professional manner in which our independent auditors, The Pun Group, conducted their audit.
In closing, City staff wishes to express deep appr eciation to the City Council for their leadership, support, and responsiveness to the financial concerns of the City.
Respectfully submitted,
Karen Huang
Finance Director
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City of San Mateo City Council Members
2024
Lisa Diaz Nash
Mayor
Rob Newsom Jr.
Deputy Mayor
Adam Loraine
Council Member
Rich Hedges
Council Member
Amourence Lee
Council Member
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City Organizational Chart
COMMUNITY
DEVELOPMENT
PUBLIC
WORKSPOLICE PARKS &
RECREATION LIBRARY INFORMATION
TECHNOLOGYFINANCE HUMAN
RESOURCES
OPERATING DEPARTMENTS
CITY MANAGER CITY CLERK
CITY ATTORNEY
CITY COUNCIL
COMMUNITY OF SAN MATEO
BOARDS & COMMISSIONS
Civic Arts Committee
Community Relations Commission
Investment Advisory Committee
Library Board
Measure S Oversight Committee
Mosquito and Vector Control District
Parks & Recreation Commission
Personnel Board
Planning Commission
Senior Citizens Commission
Sustainability and Infrastructure Commission
Y outh Advisory Council
Mayor
Deputy Mayor
Council Member
Council Member
Council Member
City Manager
City Attorney
City Council
Lisa Diaz Nash
Rob Newsom Jr.
Adam Loraine
Rich Hedges
Amourence Lee
Alex Khojikian
Prasanna Rasiah
Assistant City Manager
City Clerk
City Librarian
Community Development Director
Finance Director
Interim Human Resources Director
Information Technology Director
Parks and Recreation Director
Police Chief
Public Works Director
Department Heads
Christina Horrisberger
Martin McTaggart
James Moore
Zach Dahl
Karen Huang
Shawnna Maltbie
Pete Owen
Joanne Magrini
Ed Barberini
Matt Fabry
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Mateo
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members
of the City Council of the City of San Mateo
San Mateo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remain ing fund information of the City of Sa n Mateo, California (the “City”), as of and for the year ended June 30, 20 24, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each majo r fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fi nancial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under tho se standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements secti on of our report. We are requi red to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the prep aration and fair presentation of the fi nancial statements in accordance with accounting principles generally accepted in the United Stat es of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate wh ether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ab ility to continue as a going concern for twelve months beyond the financial st atement date, including any currently known information that may raise substantial doubt shortly thereafter.
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To the Honorable Mayor and Members
of the City Council of the City of San Mateo
San Mateo, California
2 Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whet her the financial statements as a whole are free from material misstatement, whether due to fraud or error, a nd to issue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards ge nerally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the ove rride of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal c ontrol relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal cont rol-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Sche dules, Schedule of City’s Proportionate Share of the Net Pension Liability and Related Ratios, Schedules of Contri butions – Pension, and Schedule of Changes in Total OPEB Liability and Related Ratios, as listed in the accompa nying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an es sential part of financial reporting for placing the basic financial statements in an appropriate operational, economic , or historical context. We have applied certain limited procedures to the required supplementary information in acco rdance with auditing standards generally accepted in the United States of America, which consisted of inquiri es of management about the methods of preparing the information and comparing the informa tion for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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To the Honorable Mayor and Members
of the City Council of the City of San Mateo
San Mateo, California
3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statemen ts. The Combining and Individual Fund Financial Statements, Budgetary Comparison Schedules, Schedule of Assessments, and Impact Fees and Related Expenditures are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America . In our opinion, the Combining and Individual Fund Financial Statements, Budgetary Comparison Schedules, and the Schedule of Assessment and Impact Fees and Related Expenditures are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the othe r information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basi c financial statements, our responsibility is to read the other information and consider whether a material inconsistenc y exists between the other information and the basic financial statements, or the other information otherwise appears to be materially mi sstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our repor t dated January 21, 2025, on our consideration of the City’s internal control over financia l reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreemen ts and other matters. The purpose of that report is solely to describe the scope of our testing of internal control ove r financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Walnut Creek, California
January 21, 2025
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MANAGEMENT’S DISCUSSION & ANALYSIS
5 Management of the City of San Mateo (City) offers readers of the financial statements this narrative overview and analysis of the financial activi ties of the City for the fiscal ye ar ended June 30, 2024. Readers are encouraged to consider the information presented here in conjunction with additi onal information that is furnished in our letter of transmittal, the financial statements, and notes. The focus of the information herein is on the primary government.
FINANCIAL HIGHLIGHTS
The City’s assets and deferred outflows of resour ces exceeded liabilities and deferred inflows of resources by $860.8 million (net position), which is a $73.5 million increase compared to the beginning net position. The total net position includes $618.8 million in net investment in capital assets, $111.2 million in restricted net position, and $130.7 million in unrestricted net position.
Total government-wide revenues from all sources were $322.1 million experiencing a growth of $16.9 million from the prior year. Total revenues for government al activities grew $18.1 million from the previous year largely due to increases in charges for services and improvements in investment earnings.
Business-type activities saw a net decrease of $1.2 million in revenues compared to the prior year primarily attributed to decrease in capital contributions from the sewer enterprise’s regional customers.
During the fiscal year, the City used a portion of WIFIA loan proceeds to defease the City’s 2021 Wastewater Revenue Notes, Series B. The defeasance resulted in an increase of $15.6 million in deferred gain on refunding compared to the prior fiscal year.
Governmental funds reported combined fund balances of $276.1 million, an increase of $12.7 million or
4.8% in comparison with the prio r year. Of the total fund balanc e, $105.7 million is available for spending at the City’s discretion (unassigned fund balance).
The Enterprise Fund net position increased by $54.7 million to $390.6 million. Of this amount, $184.6 million was unrestricted net position and available for use at the City’s discretion.
At June 30, 2024, the General Fund’s total fund balance was $118.0 million. The General Fund recorded $170.0 million in total revenues, $157.6 million in expenditures, and $12.3 million in other financing uses, leading to a nearly breakeven fiscal year.
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6 OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements.
The basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financ ial statements. In addition to the basic financial statements, this report also contains the required supplementary information.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector businesses.
The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred outflows and inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the City’s financial position is improving or deteriorating.
The Statement of Activities reports how the City's net po sition changed during the most recent fiscal year.
All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes, loan receivables, and earned but unused compensated leaves).
The governmental activities reflect the City’s basi c services, including gene ral government, community development, public safety, public works, parks and recreation, and library. These services are principally financed by property, sales, and other taxes.
The business-type activities reflect private-sector-type operations where fees for services typically cover all or most of the cost of operations, including deprecia tion expenses. The City’s sewer enterprise is the activity reported in this category.
The government-wide financial statements include not only the City itself (referred to as the primary government), but also other legally separate entities for which the City is financia lly accountable. Financial information for the City’s one component unit, which is the San Mateo Joint Powers Financing Authority, is reported separately from the financial informatio n presented for the primary government itself. The component unit, although legally sepa rate, functions essentially as an agency of the City, and therefore is included as an integral part of the City. The government-wide financial statements can be found on pages 30- 33 of this report.
FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts that is us ed to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
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MANAGEMENT’S DISCUSSION & ANALYSIS
7 Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statemen ts. Governmental fund financial statements focus on near-term inflows and outflows of sp endable resources, as well as on balances left at year-end that are available for spending. Consequently, the governmental fund financial statements provide a detailed short- term view that helps the readers determine whether th ere are more or fewer financial resources that can be spent in the near future to finance the City’s progra ms. Because this information does not encompass the long-term focus of the government-wide statements, addi tional information is provided that reconciles the governmental fund financial statements to the govern ment-wide statements explaining the relationship (or differences) between them.
The governmental funds comprise 25 individual fund s. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances of the General and Capital Projects funds, each of which is a major fund. Data for the other 19 governmental funds are combined into a single aggregated presentation. Individual fund data for these non-major governmental funds is provided in the form of combining statements, beginning on page 140 of this report. The basic governmental fund financial statements can be found on pages 39-42 of this report.
Since July 1, 1986, the City has employ ed a two-year budget cycle. The two-year budget process includes preparation of two one-year expenditure plans and revenue estimates that are presented to the City Council for consideration. The focus of the first year of the business plan is the City’s operating budget, while the focus of the second year of the business plan is the City’s Capital Improvement Plan. In any budget cycle, to remain adaptable to changing economic and/ or operational conditions, the City may choose to develop one- year instead of two-year budget plans.
Budgetary comparison schedules, beginning on page 128, have been provided to demonstrate compliance with these budgets in accordance with accounting principles generally accepted in the United States (U.S. GAAP).
The City maintains two types of proprietary funds: enterprise and internal service. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.
The City uses an enterprise fund to account for its Sewer Fund. Internal service funds are an accounting device used to accumulate and allocate costs internally amon g the City’s various functions. The City uses internal service funds to account for its general liability, fl eet and building maintenance, vehicle and equipment replacement, workers’ compensation, dental, and other employee benefit programs. The internal service funds provide services that predominantly benefit governmental rather than business-type functions. They have been included within governmental activities to reflect the consolidation for internal services fund activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Sewer Fund. Data for the enterprise fund and all the internal service funds are combined into their respective single aggregated presentations. Individual fund data for the non-major internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 45-49 of this report.
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MANAGEMENT’S DISCUSSION & ANALYSIS
8 Fiduciary funds are used to account for resources held on behalf of outside parties, including other governments. When these assets are held under the terms of formal trust agreement, a private-purpose trust is used. The City maintains a private-purpose trust fu nd for the Successor Agency of the City of San Mateo Redevelopment Agency (Successor Agency). In addition, the City uses custodial funds for assets that the City are holding for San Mateo Consolidated Fire Department, the Community Facilities District No. 2008-01 (Bay Meadows), and other entities. Fiduciary funds generally are used to account for assets that the City holds on behalf of others as their agent. Fiduciary funds are not reported in the government-wide financial statements because the resources of these funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 53-54 of this report.
Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 61-123 of this report.
Other information in addition to the basic financial statements and accompanying notes is presented in the form of certain required supplementary information co ncerning the City’s budgetary comparison schedules for all major governmental funds and the City’s progress in funding its obligation for the provision of pension and other post-employment benefits to its employees. The combining statements supplementary information referred to earlier in connection with non-major funds and internal services funds are also presented in this section. Required supplementary information can be found on pages 125-135 of this report.
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MANAGEMENT’S DISCUSSION & ANALYSIS
9 GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial performance. At the close of the fiscal year, the City’ s assets and deferred outflows exceeded liabilities and deferred inflows of resources by $860.8 million.
The tables on the following pages present a summary and net changes of the City’s net position as of June 30, 2024, and June 30, 2023.
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MANAGEMENT’S DISCUSSION & ANALYSIS
10 Certain reclassifications of amounts prev iously reported have been made to the accompanying financial statements to maintain consistency between periods presented. The reclassifications had no impact on previously reported net assets.
As of June 30, 2024, the City reported $618.9 million (71.9%) in net position for its net investment in capital assets (e.g., land, buildings, infrastructure, machinery, and equipment), net of accumulated depreciation and less any related debt used to acquire those assets that is still outstanding. Th e City uses these capital assets to provide services to the community; consequently, these assets are not available for future spending.
Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The City also reported $111.2 million (12.9%) in restricted net position. These are resources subject to external
restrictions as to how they may be used, such as housing and economic development, capital projects, debt service, and other purposes.
The remaining $130.7 million in net position is unrestri cted, representing 15.2% of the total net position. The unrestricted net position is available to fund day-to -day operations without any constraints established by debt covenants or other legal requirements or restrictions.
In governmental activities, unrestricted net posi tion increased by $2.8 million, improving from a deficit balance of $56.7 million to a deficit of $53.9 million at June 30, 2024. The key factors of this increase included a reduction in claims payable base d on the result of the la test actuarial valuation, one-time revenues from new development projects, and better-than-expected investment earnings.
These increases were partially of fset by increases in pension and OPEB liabilities. While the unrestricted net position improved, it remained in deficit, primarily due to the net pension liabilities of $269.0 million and net OPEB liabilities of $9.5 million.
In business-type activities, unrestricted net positi on increased by $20.5 mill ion, rising from $164.1 million in the prior year to $184.6 million as of June 30, 2024. This increase was primarily driven by net income from the Sewer Fund operations.
The City’s overall net position increased $73.5 million from the previous year. The reasons for this overall increase are discussed in the following sections for the governmental activities and business-type activities.
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MANAGEMENT’S DISCUSSION & ANALYSIS
12 GOVERNMENTAL ACTIVITIES
Governmental activities increased the City’s total net position by $18.8 million. Key elements contributing to the increase are described below.
• Overall, total revenues from governmental acti vities were $222.4 million, a $18.1 million increase compared to the prior fiscal year, primarily attrib uted to the higher investment returns and charges for services. For the same period, expenses totaled $203.6 million, a decrease of $0.4 million from prior year.
• Property tax revenues in the governmental funds to taled $81.3 million, a decrease of $2.0 million or
2.4%. Property tax revenues were largely comprised of secured current year property taxes, property tax in-lieu of vehicle license fees (VLF), and Excess Educational Revenue Augmentation Fund (ERAF).
Secured property tax represented 62.6% of all prop erty tax revenues and increased by $2.2 million compared to the prior fiscal year, driven by new developments and reassessment of sold properties.
However, this increase was offset by a decrease in VLF revenue. For fiscal year 2023-24, VLF owed to the City was $15.7 million, but only $9.1 million was received, resulting in a VLF shortfall of $6.6 million. The County of San Mateo has filed a claim with the State of California in August 2024 for VLF shortfall backfill in the State’s 2025-26 budget. Due to a two-year gap, the City received $1.9 million of the 2021-22 VLF shortfall in the fiscal year 2023-24, bring the total VLF reve nue to $11.0 million, a decrease of $5.4 million from the prior year.
• Real property transfer tax revenues totaled $8.6 million, an increase of $1.2 million from $7.4 million in the previous year. While real property transfer tax revenues have declined over the last two years due to high interest rates, the passage of Measure CC in 2022 allowed the City to impose an additional 1% real property transfer tax on properties sold or transferred with a value of $10 million or more. In fiscal year 2023-24, for the first time since its passage, the City received $0.9 million Measure CC revenue, which was the primary driver of the increase of the total real property transfer tax revenues.
• The City recorded $32.4 million in sales tax revenues, a decrease of $1.9 million (or 5.5%) compared to the prior fiscal year. This decline was partially due to decreases in auto sales, and a reduction in sales tax allocation from the County pool.
• Transient occupancy tax (TOT) revenues decreased from $7.1 million in the prior year to $6.2 million in 2023-24, primarily due to the closure of the Marriott Hotel. Of the $6.2 million in total TOT revenues, $5.3 million was recorded in the General Fund and the remaining in the 2% Hotel Tax Fund.
• The City’s governmental activities accounted for $40.1 million in charges for services revenue, which was an increase of $2.7 million (or 7.2%) compared to the prior fiscal year, primarily in parks and recreation, community development, and public works. This reflects the return of the program revenues to normal operational levels.
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MANAGEMENT’S DISCUSSION & ANALYSIS
13 The following charts of governmental activities revenue by source, expense, and program revenue were derived from the Statement of Activities.
Charges for
services
18%
Operating grants
and
contributions
5%
Capital grants and
contributions
6%
Property
taxes
36%
Sales taxes
15%
Property transfer
taxes
4%
Business, hotel &
other taxes
7%
Franchise taxes
1%
Investment
income and
other revenue
8%
REVENUE BY SOURCES
GOVERNMENTAL ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2024
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14 The cost of all governmental activities for the fiscal year ended June 30, 2024, was $203.6 million. Some of the costs were paid by those directly benefiting from the programs ($40.1 million), by other governments and organizations which subsidized programs with operating grants and contributions ($11.0 million), or capital grants and contributions ($13.2 million).
BUSINESS-TYPE ACTIVITIES
Business-type activities increased th e City’s net position by $54.7 million. Key elements contributing to the increase are described below.
• Total program revenues of $99.7 million, a reduction of $1.2 million from the prior year. This was primarily due to a $7.3 million decrease in capital grants and contributions, which was partially offset by a $3.3 million increase in charges in services.
• Charges for services increased by $3.3 million to $81.3 million in 2023-24, from $78.0 million in the prior year, primarily due to a 3% increase in the City’s sewer service rates. • The $7.3 million decrease in capital grants and contributions was primarily due to the Interim Capital Cost Agreement between the City of San Mateo and the Town of Hillsborough for the latter’s share of costs for the Clean Water Program. Since the Gove rnment-Wide Financial Statements (as well as the Sewer Enterprise Fund) are accounted on a full accrua l basis, the full amount due from the Town of Hillsborough is recognized as revenue although it will be paid over 30 years (discounted by the percentage of project completion). During the cu rrent fiscal year, the City recognized $6.1 million capital contribution due from the Town of Hillsborough compared to $10.7 million in previous year.
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MANAGEMENT’S DISCUSSION & ANALYSIS
15 The following charts of business-type activities revenue by source, expense, and program revenues were derived from the Statement of Activities.
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16 Total business-type activities expenses and transfers out for the fisc al year ended June 30, 2024 were $45.0 million, an increase of $1.4 million or 3.2%, compared to the prior year. This increase reflects the rising cost of doing business amid sustained inflation.
Cash and investments of business-type activities totaled $133.4 million, a reduction of $5.0 million compared to $138.4 million in the prior year, mainly due to in vestment in capital impr ovement projects. Higher investment income and increase in business-type acti vities charges for services , were the primary driver behind the healthy cash position, which is intentional to provide strong liquidity during the construction phase of the Clean Water Program, as well as a robust debt coverage ratio consistent with the Sewer enterprise’s AA credit rating.
Business type activities no n-depreciable assets increased from $534.7 million to $613.7 million, reflecting increased Sewer capital projects construction activities for the sewer collection and treatment systems during the fiscal year.
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17 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.
GOVERNMENTAL FUNDS
The focus of the City’s governmental funds is to provide information on current year revenues, expenditures, and balances of spendable resources. Such information is useful in assessing the City’s near-term financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of June 30, 2024, the City’s governmental funds combined ending fund balance was $276.1 million, which was an increase of $12.7 million from the prior fiscal year. Of the total fund balances, $105.7 million is unassigned fund balance, which is available for spending at the City’s discretion.
The General Fund is the primary operating fund of the City, as it accounts for nearly all tax revenues and the cost of core services. The unassign ed fund balance of the General Fund was $105.7 million, while the total
fund balance was $118.0 million. As a me asure of liquidity, both unassigned fund balance and total fund balance can be compared to total fund expenditures. Unassigned fund balance and total fund balance represent approximately 67.1% and 74.9% of total General Fund expenditures of $157.6 million, respectively.
The City Council policy goal is to have reserves of at least three months of budgeted operating expenditures.
The adopted 2023-24 budget for General Fund expenditures (excluding transfers out) was $157.5 million, therefore the minimum amount of General Fund reserves required for compliance with the reserves policy in 2023-24 was $39.4 million.
While the City’s unassigned fund balance is above the po licy goal, the uncertainties of the future trends of the TOT recovery, VLF shortfall, and the impact of CalPERS investment performance on the City’s pension contributions will likely result in a significant draw do wn on the General Fund’s Rainy-Day Reserve, which is included as part of the unassigned fund balance.
Governmental funds revenues, expenditures, and change in fund balances for the last ten fiscal year can be found under the Statistical Section of this report.
The City will continue to monitor economic indicators that impact the City’s tax revenues and expenditures, including:
Ongoing elevated inflation, increasing the cost to purchase goods and services. The Federal Reserve’s efforts to mitigate inflation by increasing the Federal Funds Rate, which ultimately increases the City’s investment earnings, but as interest rates climb higher, the GASB 31 fair market value adjustment may be negative. Conversely, if the City issues debt during this time, it will incur greater interest expense.
The increased cost to borrow money, which places pressure on the prospective home buyers, will likely dampen the City’s real property transfer tax.
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MANAGEMENT’S DISCUSSION & ANALYSIS
18 General Fund
The General Fund is the City’s primary operating fund , supporting core services and accounting for the majority of tax revenues. In FY 2023-24, General Fund total revenues increased by $6.4 million or 3.9% to $170.0 million. Major revenues include:
Property Tax
Property tax remains the City’s largest and most stable revenue source, generating $78.6 million in FY 2023- 24, $2.0 million less than the prior fiscal year. Although secured property tax continued to grow, decline was due to the shortfall in Vehicle License Fee (VLF) in-lieu property tax revenue.
Sales Tax
Sales tax revenue, the second largest revenue, decreased by $1.8 million (6.1%) to $27.8 million. The decrease was primarily due to reduced auto sales and a lower sales tax allocation from the County pool.
Other Taxes
Other taxes, primarily consisting of Transient Occupancy Tax (TOT), re al property tran sfer tax (RPTT), business tax and franchise fees, totaled $25.9 million in FY 2023-24, reflecting a slight decrease of $0.2 million from the previous year. TOT generated $5.3 millio n, RPTT $8.7 million, business tax $8.5 million, and franchise and other taxes $3.4 million. TOT revenue declined due to the Marriot Hotel closure. This decrease was partially offset by a $1.2 million (16%) increase in RPTT, which was primarily attributed to Measure CC.
Investment Income
Investment income saw the largest growth, increased by $8.1 million -- from $0.4 million to $8.5 million – due to higher yields and mark-to-market unrealized gain as of June 30, 2024.
Charges for Services
Revenues from charges for services increased by $1.8 million (13.0%) to $15.6 million, primarily due to stronger revenues from encroachment permits, golf operations and recreation programs.
Expenditures
General Fund expenditures totaled $157.6 million, increased by $7.7 million (5.1%) compared to the prior year.
The increase was due to negotiated labor cost increases and rising operating expenses linked to inflation.
Fund Balance
For FY 2023-24, the General Fund’s total revenues ($170.0 million) exceeded expenditures ($157.6 million) by $12.4 million, before $12.3 million of other financing uses – which was primarily transfers out to capital projects fund and debt service funds, net of transfers in from other funds. This resulted in a net fund balance increase of $0.1 million, increasing the General Fund balance to $118.0 million.
General Capital Projects Fund
The General Capital Projects Fund was established to account for the City’s major infrastructure improvement needs and other capital projects. At the close of FY 2023-24, the fund has a fund balance of $58.8 million, increasing by $4.6 million (8.5%) fr om the prior fiscal year. Total expe nditures were $26.8 million, funding various capital projects, including $11.8 million for the citywide street rehabilitation and reconstruction program, $1.7 million for storm and flood control improvements, $2.6 million for parks projects, and $7.9 million for city facilities and technology upgrades. The citywide street reconstruction projects specifically targeted streets identified as failed in 2013, while rehabilitation projects focused on street resurfacing, with the goal to maintain the City’s Pavement Condition Index (PCI) at or above 70.
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19 Construction Services Fund
The Construction Services Fund was established to account for building permit revenue and expenditures for activities relating to private develo pment projects. In FY 2023-24, the Cons truction Services Fund no longer met the criteria to be reported as a major fund. The ch ange resulted in adjustments to and a restatement of beginning fund balance. Further details were provided in the notes to the basic financial statements on page 122 of this report.
PROPRIETARY FUNDS
Proprietary Funds are comprised of enterprise and internal service funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but with some additional details.
Enterprise Fund
The City has a sewer enterprise operation. Total enterp rise fund net position was $390.6 million, an increase of $54.7 million, or 16.3%, over the prior fiscal year.
The unrestricted net position of the Sewer Enterprise Fund at the end of the fiscal year was $184.6 million, an increase of $20.5 million from the prior fiscal year. Th is is due primarily to the scheduled rate increase and capital contributions for CIP projects. The scheduled rate increase ensure the Sewer Enterprise Fund maintains a strong cash position and debt service coverage ratio, aligned with the operational and capital project needs.
This financial strength supports the fund’s high credit rating and ensures compliance with its debt coverage requirements pursuant to debt indentures.
Internal Service Funds
The internal service funds’ total net position of $25. 5 million increased by $10.0 million or 64.5% from the prior year. The unrestricted net position at the end of the year was $18.4 million, or 72.2% of total net position.
The current year’s decrease in total net position of the internal service funds is due to a variety of factors that are discussed in more detail below.
Workers’ Compensation Insurance Fund’s net position increased by $1.2 million to $7.6 million. Revenue from charges for services is set based on budget proj ections. The City continues to balance the workers’ compensation collection rate charged to operating depa rtments with proactive programs aimed at reducing frequency and severity of workers’ compensation claims.
The Dental Fund ended the fiscal year with a net position of $0.9 million, a slight decrease of $0.1 million compared to the prior year. The Benefits Fund’s endi ng net position was $1.1 m illion, an increase of $0.5 million compared to the prior year.
The Comprehensive Liability Insurance Fund’s ending net posi tion was negative $2.4 million, a significant improvement of $9.6 million, primarily due to resolved litigations resulting in lower claims payable.
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20 The Vehicle and Equipment Replacement Fund ended fiscal year with a net position of $18.1 million, a decrease of $0.7 million or 3.7% compared to the prior fiscal year. This slight decline indicates that the current collection rates adequately cover vehicle and equipment replacement costs.
The Fleet and Building Maintenance Fund ended the year with a net position of $0.2 million, a decrease of $0.6 million from the prior fiscal year. While the current collection rates remain adequate, an increase in recovery rates may deem necessary in future years to maintain the fund’s long-term sustainability.
GENERAL FUND BUDGETARY HIGHLIGHTS
The General Fund adopted budget for FY 2023-24 reflecte d a $12.6 million deficit. The final budget increased by $6.0 million, raising the total deficit to $17.3 million. However, by the close of FY 2023-24, actual revenues closely matched total expenditures. As a result, the General Fund experienced a brea k-even year, with actual revenues exceeding budget projections and actual spending coming in under budget. The following schedule summarizes the General Fund budgetary comparison for the current fiscal year (amounts in millions).
General Fund total resources - actual revenues and transfers in were $12.9 million more than the final budgeted estimate, while total charges – actual expenditures an d transfers out were $4.5 million under the final budget.
At the end of the fiscal year, the total fund balance of the General Fund was $118.0 million, which was the same compared to the prior fiscal year.
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MANAGEMENT’S DISCUSSION & ANALYSIS
21 The following schedule shows differences between th e final estimated revenues and actual revenues of greater than $1.0 million in value (amounts in millions).
Actual revenues outperformed estimates in most ca tegories. Notably, investment income exceeded expectations by $6.7 million, and charges for services brought in $2.8 million more than estimated. Property taxes, other taxes, and parking meter and lease reve nue also performed better than budget projections.
However, sales taxes fell short by $3.4 million largely due to decrease in auto and County pool allocation.
Actual expenditure and transfers out was $4.5 million less than the final budget. The largest favorable variance was from the Public Works and Parks and Recreation departments.
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MANAGEMENT’S DISCUSSION & ANALYSIS
22 CAPITAL ASSETS AND LONG-TERM DEBT ADMINISTRATION
CAPITAL ASSETS
The City’s investment in capital assets for its governme ntal and business-type acti vities as of June 30, 2024, amounts to $1.3 billion, which is $91.6 million more than the prior year. This investment in capital assets includes land, buildings, improvements, machiner y and equipment, construction in progress, and infrastructure - park facilities, roads, highways, bridges, lighting systems, sewer and storm systems, and the golf course. Major capital asset activi ty during the current fiscal year in cluded city-wide sanitary sewer and storm improvements, and city-wide street rehabilitatio n and reconstruction. Additional information on the City’s capital assets can be found in Note 6 on pages 90-91 of this report.
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MANAGEMENT’S DISCUSSION & ANALYSIS
23 LONG-TERM DEBT
At the end of the current fiscal ye ar, the City had total long-term debt outstanding of $700.7 million. Of this amount, $14.0 million comprises debt backed by the full faith and credit of the City. The remainder of outstanding debt is primarily composed of bonds and loans secured by specified revenue sources; e.g., sewer charges and loans.
The City’s rating for General Obligation Bonds is AA+ from Standard & Poor’s and AAA from Moody’s.
Standard & Poor’s has assigned a rating of Aa2 for the City’s revenue bonds.
State statutes limit the amount of general obligation debt a governmental entity may issue to 15% of its total assessed valuation. The current debt limitation for the City is approximately $5.6 billion, and at June 30, 2024, the City was only at 0.25% of its legal debt limit. Additional information on the City of San Mateo’s long-term debt can be found in Note 7 and statistical section of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City of San Mateo continues to benefit from a strong regional economy characterized by low unemployment and steady economic growth. As of June 2024, San Mateo County's unemployment rate remains under 4%, reflecting a strong local job market that outperforms the stat e average. This economic strength has supported stable revenue streams for the City, despite challenges in specific sectors.
The real estate market has shown signs of slowing du ring FY 2023-24 due to the sust ained high-interest rate environment. While property sales activity has cooled, the median home price in San Mateo has remained stable and even shown increases, demonstrating the City housing market’s resilience and strength. Near the end of FY 2023-24, several commercial properties changed ownership, and this trend continued into the new fiscal year. The City has seen increases in Real Property Transfer Tax (RPTT) revenue as a result.
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MANAGEMENT’S DISCUSSION & ANALYSIS
24 General Fund
Despite these positive factors, balancing the General Fund’s budget is a challenging. While the City’s revenues are stable, expenditures have increased due to rising labor costs, sustained inflation, and the needs to continue to invest in the community to improve services.
The General Fund is projecting a budget deficit in FY 2024-25, with $169.8 million in total revenues (including transfers in) and $180.4 million in expenditures (including transfers out), resulting in a deficit of $10.6 million.
The adopted FY 2024-25 General Fund budget reflects care ful planning of our financial resources, balancing the need to maintain high service levels with the realities of economic uncertainty. Modest revenue growth is projected across most major revenue sources, with particular attention to the performance of General Fund’s property tax (including VLF), sales tax, RPTT and TOT. Expenditure growth remains focused on maintaining essential services, with continued investments in public safety, infrastructure, and community services.
Personnel costs, including negotiated salary adjustme nts and rising pension and healthcare contributions, continue to add pressure on the General Fund. These cost factors have been incorporated into the City's long- term financial forecast.
Due to proactive financial planning, the City maintains a healthy General Fund reserve, with over $118.0 million as of June 30, 2024. This reserve offers the City a financial runway to develop and implement a comprehensive financial sustainability plan, which will focus on balancing the budget, continuing investment in facilities and infrastructure to meet community needs, and preserving the City’s long-term financial health.
The FY 2024-25 budget reflects the City's commitment to fiscal responsibility. By leveraging its strong reserve position and adhering to prudent fisc al policies, the City is well-positioned to navigate future economic challenges while continuing to deliver high-quality services to the community.
Capital Projects Fund
In June 2024, City Council approved the five-year Capital Improvement Plan (CIP) and FY 2024-25 Capital Budget. The five-year CIP totals $240.0 million, with $65.2 million for 2024-25. New funding and major changes included: increases in funding for the Cl ean Water Program and the Sewer Collection System Rehabilitation Program, as well as new funding for the street rehabilitation and reconstruction projects, storm and flood control improvement projects, park projects, and city facilities and technology upgrades.
Sewer Fund
Sewer rates are scheduled to increase 3.0% in FY 2024-25. Revenues collected through the sewer service charges are used to fund sewer sanitary operations and capital improvement projects. San Mateo's upgraded wastewater treatment plant is scheduled to begin operat ions in 2025. The project has achieved significant milestones, with Phase 3 construction approximately 85% complete as of June 2024.
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MANAGEMENT’S DISCUSSION & ANALYSIS
25 REQUESTS FOR INFORMATION
This financial report is designed to provide a genera l overview of the City of San Mateo’s finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial info rmation should be addressed to the Finance Director, 330 West 20th Avenue, San Mateo, California, 94403.
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26 135 of 356
BASIC FINANCIAL STATEMENTS
27 136 of 356
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28 137 of 356
GOVERNMENT-WIDE FINANCIAL STATEMENTS
29 138 of 356
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 326,227,149 $ 133,397,595 $ 459,624,744 $ Accounts receivable, net 3,493,554 36,099,027 39,592,581 Interest receivable 2,210,243 643,703 2,853,946 Taxes receivable 7,925,136 - 7,925,136 Grants receivable 3,287,616 - 3,287,616 Leases receivable - current 485,582 - 485,582 Prepaid items, inventory, and deposits 908,933 - 908,933 Total current assets 344,538,213 170,140,325 514,678,538 Noncurrent assets:
Restricted cash and investments 21,216,358 51,978,422 73,194,780 Investment in JPA 12,740,381 - 12,740,381 Leases receivable 9,546,992 - 9,546,992 Loans and notes receivable, net 3,893,484 38,999,057 42,892,541 Capital assets:
Non-depreciable 82,476,143 613,717,839 696,193,982 Depreciable/amortizable, net 400,058,126 170,526,248 570,584,374 Total capital assets 482,534,269 784,244,087 1,266,778,356 Total noncurrent assets 529,931,484 875,221,566 1,405,153,050 Total assets 874,469,697 1,045,361,891 1,919,831,588
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 699,287 - 699,287 Related to OPEB 4,543,847 674,767 5,218,614 Related to pensions 52,666,966 4,950,503 57,617,469 Total deferred outflows of resources 57,910,100 5,625,270 63,535,370
June 30, 2024
Statement of Net Position
City of San Mateo
Primary Government
See accompanying Notes to the Basic Financial Statements. 30 139 of 356
Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable 30,745,322 1,085,688 31,831,010 Retention payable 5,029,210 - 5,029,210 Accrued payroll 2,495,736 - 2,495,736 Deposits payable 13,266,409 1,057,256 14,323,665 Interest payable 573,808 6,722,343 7,296,151 Unearned revenue 5,652,816 - 5,652,816 Compensated absences - due within one year 910,640 121,123 1,031,763 Claims payable - due within one year 4,044,000 - 4,044,000 Landfill postclosure cost payable - due within one year 115,264 - 115,264 Long-term debt - due within one year 5,873,007 1,997,968 7,870,975 Total current liabilities 68,706,212 10,984,378 79,690,590 Noncurrent liabilities:
Net OPEB liability 9,481,590 1,408,025 10,889,615 Net pension liability 269,036,271 18,451,401 287,487,672 Compensated absences - due in more than one year 7,367,905 979,997 8,347,902 Claims payable - due in more than one year 13,854,000 - 13,854,000 Landfill postclosure cost payable - due in more than one year 1,613,688 - 1,613,688 Long-term debt - due in more than one year 80,695,504 612,085,555 692,781,059 Total noncurrent liabilities 382,048,958 632,924,978 1,014,973,936 Total liabilities 450,755,170 643,909,356 1,094,664,526
DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding - 16,156,892 16,156,892 Related to leases 9,222,294 - 9,222,294 Related to OPEB 1,783,054 264,788 2,047,842 Related to pensions 414,055 98,770 512,825 Total deferred inflows of resources 11,419,403 16,520,450 27,939,853
NET POSITION
Net investment in capital assets 412,852,193 205,982,094 618,834,287
Restricted:
Housing and economic development 11,827,816 - 11,827,816 Capital projects 54,867,835 - 54,867,835 Debt service 8,141,815 - 8,141,815 Other purposes 36,377,646 - 36,377,646 Total restricted 111,215,112 - 111,215,112 Unrestricted (deficit) (53,862,081) 184,575,261 130,713,180 470,205,224$ 390,557,355$ 860,762,579$ Total net position Primary Government
City of San Mateo
Statement of Net Position (Continued)
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 31 140 of 356
Operating Capital
Charges for Grants an d Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:
Governmental activities:
General government 27,773,248$ 6,755,941 $ 1,658,225 $ 241,646 $ 8,655,812 $ Community development 14,269,937 12,636,122 1,189,784 - 13,825,906 Public safety 92,903,796 4,132,856 1,963,540 - 6,096,396 Public works 31,088,776 8,506,152 5,548,368 5,486,731 19,541,251 Parks and recreation 24,598,631 7,662,922 313,404 7,519,597 15,495,923 Library 10,598,001 381,127 330,136 - 711,263 Interest on long-term debt 2,407,407 - - - - Total governmental activities 203,639,796 40,075,120 11,003,457 13,247,974 64,326,551 Business-type activities:
Sewer 45,059,021 81,333,394 - 8,179,541 89,512,935 Total business-type activities 45,059,021 81,333,394 - 8,179,541 89,512,935 Total primary government 248,698,817$ 121,408,514 $ 11,003,457 $ 21,427,515 $ 153,839,486 $
City of San Mateo
Statement of Activities
For the Year Ended June 30, 2024
Program Revenues
See accompanying Notes to the Basic Financial Statements. 32 141 of 356
Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:
Governmental activities:
General government (19,117,436)$ - $ (19,117,436)$ Community development (444,031) - (444,031) Public safety (86,807,400) - (86,807,400) Public works (11,547,525) - (11,547,525) Parks and recreation (9,102,708) - (9,102,708) Library (9,886,738) - (9,886,738) Interest on long-term debt (2,407,407) - (2,407,407) Total governmental activities (139,313,245) - (139,313,245) Business-type activities:
Sewer - 44,453,914 44,453,914 Total business-type activities - 44,453,914 44,453,914 Total primary government (139,313,245) 44,453,914 (94,859,331) General Revenues and Transfers:
General revenues:
Taxes:
Property taxes 81,331,244 - 81,331,244 Sales taxes 32,380,449 - 32,380,449 Property transfer taxes 8,634,762 - 8,634,762 Transient occupancy taxes 6,213,752 - 6,213,752 Business license taxes 8,531,756 - 8,531,756 Franchise taxes 3,403,374 - 3,403,374 Other taxes 230,617 - 230,617 Total taxes 140,725,954 - 140,725,954 Investment income 15,375,641 9,342,754 24,718,395 Miscellaneous revenue 2,010,153 848,548 2,858,701 Total general revenues and transfers 158,111,748 10,191,302 168,303,050 Change in net position 18,798,503 54,645,216 73,443,719 Net Position:
Beginning of year 451,406,721 335,912,139 787,318,860 End of year 470,205,224$ 390,557,355$ 860,762,579$ For the Year Ended June 30, 2024
Statement of Activities (Continued)
City of San Mateo
Net (Expense) Revenue
and Changes in Net Position
See accompanying Notes to the Basic Financial Statements. 33 142 of 356
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34 143 of 356
FUND FINANCIAL STATEMENTS
35 144 of 356
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36 145 of 356
Governmental Funds Financial Statements
General Fund - This fund accounts for all revenues and 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, and library services.
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 impact fees and transfers from other governmental funds. 37 146 of 356
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38 147 of 356
General Non-major Total
General Capital Projects Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments 127,335,266 $ 64,624,532 $ 98,325,201 $ 290,284,999 $ Restricted cash and investments held by fiscal agents - 21,180,475 35,883 21,216,358 Accounts receivable, net 1,693,036 221,822 854,909 2,769,767 Interest receivable 2,210,243 - - 2,210,243 Taxes receivable 6,878,649 241,779 804,708 7,925,136 Grants receivable 234,372 2,503,716 549,528 3,287,616 Leases receivable 10,032,574 - - 10,032,574 Prepaid items, inventory, and deposits 304,759 - - 304,759 Loans and notes receivable, net - 373,357 3,520,127 3,893,484 Total assets 148,688,899$ 89,145,681 $ 104,090,356 $ 341,924,936 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 4,431,109 $ 23,918,294 $ 1,531,845 $ 29,881,248 $ Retention payable - 5,029,210 - 5,029,210 Accrued payroll 2,495,736 - - 2,495,736 Deposits payable 12,892,520 - 260,875 13,153,395 Unearned revenues 1,689,899 1,335,343 2,627,574 5,652,816 Total liabilities 21,509,264 30,282,847 4,420,294 56,212,405
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 55,757 297,868 353,625 Related to leases 9,222,294 - - 9,222,294 Total deferred inflows of resources 9,222,294 55,757 297,868 9,575,919
Fund Balances:
Nonspendable 304,759 - - 304,759 Restricted 550,000 32,211,408 99,372,194 132,133,602 Assigned 11,443,226 26,595,669 - 38,038,895 Unassigned 105,659,356 - - 105,659,356 Total fund balances 117,957,341 58,807,077 99,372,194 276,136,612 Total liabilities, deferred inflows of
resources, and fund balances 148,688,899$ 89,145,681$ 104,090,356$ 341,924,936$ Major Funds
June 30, 2024
Governmental Funds
Balance Sheet
City of San Mateo
See accompanying Notes to the Basic Financial Statements. 39 148 of 356
Total Fund Balances - Total Governmental Funds 276,136,612$ 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. 353,625 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 482,534,269
Less: capital assets reported in Internal Service Funds (7,117,646) Total capital assets 475,416,623
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 (910,640)
Compensated absences - due in more than one year (7,367,905) Long-term debt - due within one year (5,873,007)
Long-term debt - due in more than one year (80,695,504) Landfill postclosure cost payable - due within one year (115,264) Landfill postclosure cost payable - due in more than one year (1,613,688) Tota
l long-term liabilities (96,576,008)
Deferred amounts related to the refunding of long-term debt were not current financial resources. Therefore, the y were not reported in the Governmental Funds Balance Sheet. This amount is to be amortized over the life of the long-term debt. 699,287
Investmen
t in joint ventures are not current financial resources. Therefore, the y were not reported in the Governmental Funds Balance Sheet. 12,740,381
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds. (573,808) 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 pens
ion liability (269,036,271)
Net OPEB liability (9,481,590)
(278,517,861)
Deferred outflows 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 outflows of resources related to OPEB 4,543,847 Deferred outflows of resources related to pensions 52,666,966 Total deferred outflows of resources 57,210,813
Deferred inflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.
Amount reported in Government-Wide Statement of Net Position Deferred inflows of resources related to OPEB (1,783,054) Deferred inflows of resources related to pensions (414,055) Total deferred inflows of resources (2,197,109)
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. 25,512,669 Net Position of Governmental Activities 470,205,224$
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, 2024
See accompanying Notes to the Basic Financial Statements. 40 149 of 356
Formerly
Major Fund
Construction
General Services Non-ma jor Total
General Ca pital Projects S pecial Revenue Governmenta l Governmental Fund Fund Fund Funds Funds
REVENUES:
Property taxes 78,606,527$ - $ 2 ,724,717$ 81 ,331,244$ Sales taxes 27 ,772,986 4 ,607,463 - 32 ,380,449 Other taxes 25 ,883,776 - 887 ,679 26 ,771,455 Licenses, building and other permits 97,101 40 7 ,248,749 7 ,345,890 Fines, forfeitures and penalties 3,024,160 - 218 ,732 3 ,242,892 Intergovernmental 3,066,664 2 ,875,692 7 ,580,131 13 ,522,487 Charges for services 15,607,445 - 5 ,571,332 21 ,178,777 Investment income 8 ,470,713 755 ,722 4 ,518,460 13 ,744,895 Assessments and garbage collection - 537 ,912 2 ,359,848 2 ,897,760 Parking meter and lease revenue 3,199,677 - - 3 ,199,677 Capital contributions - 1 ,074,216 8 ,690,739 9 ,764,955 Other revenues 4 ,284,746 368 ,360 687 ,539 5 ,340,645 Total revenues 170,013,795 10 ,219,405 40 ,487,926 220 ,721,126
EXPENDITURES:
Current:
General government:
City Council 319,813 - - 319 ,813 City Manager 2,305,807 - 125 ,014 2 ,430,821 City Clerk 785,263 - - 785 ,263 City Attorney 1,265,970 - 229 ,587 1 ,495,557 Finance 4 ,220,237 - - 4 ,220,237 Information technology 3,979,491 - 123 ,895 4 ,103,386 Human resources 2 ,169,288 - - 2 ,169,288 Community development 1,729,511 - 12 ,132,829 13 ,862,340 Public safety:
Police 59 ,056,241 - 960 ,900 60 ,017,141 Fire 27 ,509,727 - - 27 ,509,727 Public works 10 ,831,430 - 4 ,775,586 15 ,607,016 Parks and recreation 21 ,136,909 - - 21 ,136,909 Library 8,619,895 - - 8 ,619,895 Non-departmental 9,678,356 - 289 ,750 9 ,968,106 Capital outlay 1,386,609 26 ,110,259 118 ,568 27 ,615,436 Debt service:
Principal 2,353,226 607 ,946 2 ,995,000 5 ,956,172 Interest and fiscal charges 249,630 37 ,694 2 ,519,507 2 ,806,831 Total expenditures 157,597,403 26 ,755,899 24 ,270,636 208 ,623,938
REVENUES OVER (UNDER) EXPENDITURES 12,416,392 (16,536,494) 16,217,290 12 ,097,188 OTHER FINANCING SOURCES (USES):
Proceeds from sale of property 21,354 - - 21,354 Inception of subscription liability 1,076,231 - - 1 ,076,231 Transfers in 7,247,433 21 ,157,125 2 ,691,887 31 ,096,445 Transfers out (20,683,288) - (10,909,609) (31,592,897) Total other financing sources (uses) (12,338,270) 21,157,125 (8,217,722) 601,133 NET CHANGE IN FUND BALANCES 78,122 4 ,620,631 7 ,999,568 12 ,698,321 FUND BALANCES:
Beginning of year, as previously reported 117,879,219 54 ,186,446 32 ,627,760 58 ,744,866 263 ,438,291 Change with financial reporting entity
(major to non major fund) - - (32,627,760) 32,627,760 - Beginning of year, as restated (Note 19) 117,879,219 54 ,186,446 - 91 ,372,626 263 ,438,291 End of year 117,957,341$ 58 ,807,077$ - $ 99 ,372,194$ 276 ,136,612$ For the Year Ended June 30, 2024
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of San Mateo
Major Funds
See accompanying Notes to the Basic Financial Statements. 41 150 of 356
Net Change in Fund Balances - Total Governmental Funds 12,698,321$ 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 $1,788,474 added in internal service funds) ($1,159,807 of the governmental fund capital outlay balance were for repairs and maintenance expenditures). 28,070,051
Depreciation and amortization expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position, but they did not require the use of current financial resources. Therefore, depreciation and amortization expense, net of internal service funds of $1,135,439, was not reported as expenditures in the Governmental Funds. (21,642,987)
The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased net position (net of $74,946 reported in the internal services fund). (589,635) 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 5,956,172
Amortization of bond premium 490,640
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. 31,129 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. (60,079)
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. (284,711) 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. 68,591
Investmen
t in joint ventures are not current financial resources. Therefore, the y were not reported in the Governmenta l Funds Balance Sheet. This amount represents the change in joint ventures. 255,799 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 (8,322,107) Changes in net pension liabilities (7,902,472)
Changes in pension related deferred inflows of resources 761,612 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 2,913,166 Changes in total OPEB liabilities (2,143,918)
Changes in OPEB related deferred inflows of resources (321,635) 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. 10,019,142
Chan
ge in Net Position of Governmental Activities 18,798,503$ 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, 2024
See accompanying Notes to the Basic Financial Statements. 42 151 of 356
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. 43 152 of 356
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44 153 of 356
Major Fund Governmenta l
Activities
Sewer Internal
Fund Service Funds
ASSETS
Current assets:
Cash and investments 133,397,595$ 35,942,150 $
Accounts receivable, net 36,099,027 723,787
Interest receivable 643,703 -
Prepaid items, inventory, and deposits - 604,174 Total current assets 170,140,325 37,270,111
Noncurrent assets:
Restricted cash and investments 51,978,422 -
Loans and notes receivable, net 38,999,057 -
Capital assets:
Non-depreciable 613,717,839 -
Depreciable, net 170,526,248 7,117,646
Total capital assets 784,244,087 7,117,646
Total noncurrent assets 875,221,566 7,117,646
Total assets 1,045,361,891 44,387,757
DEFERRED OUTFLOWS OF RESOURCES
Related to OPEB 674,767 -
Related to pensions 4,950,503 -
Total deferred outflow of resources 5,625,270 -
LIABILITIES
Current liabilities:
Accounts payable 1,085,688 864,074
Deposits payable 1,057,256 113,014
Interest payable 6,722,343 -
Compensated absences - due within one year 121,123 - Claims payable - due within one year - 4,044,000 Long-term debt - due within one year 1,997,968 - Total current liabilities 10,984,378 5,021,088
Noncurrent liabilities:
Net OPEB liability 1,408,025 -
Net pension liability 18,451,401 -
Compensated absences - due in more than one year 979,997 - Claims payable - due in more than one year - 13,854,000 Long term debt - due in more than one year 612,085,555 - Total noncurrent liabilities 632,924,978 13,854,000 Total liabilities 643,909,356 18,875,088
DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding 16,156,892 -
Related to OPEB 264,788 -
Related to pensions 98,770 -
Total deferred inflows of resources 16,520,450 -
NET POSITION
Net investment in capital assets 205,982,094 7,117,646 Unrestricted 184,575,261 18,395,023
Total net position 390,557,355$ 25,512,669 $
June 30, 2024
Proprietary Funds
Statement of Net Position
City of San Mateo
See accompanying Notes to the Basic Financial Statements. 45 154 of 356
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46 155 of 356
Major Fund Governmental
Activities
Sewer Internal
Fund Service Funds
OPERATING REVENUES:
Charges for services 80,502,873$ 59,753,522$
Connection fees 830,521 -
Other 848,548 10,579,772
Total operating revenues 82,181,942 70,333,294 OPERATING EXPENSES:
Personnel services 12,850,005 46,124,609
Materials and supplies 14,555,427 15,138,472 Depreciation and amortization 5,635,414 1,271,051 Total operating expenses 33,040,846 62,534,132
OPERATING INCOME 49,141,096 7,799,162
NONOPERATING REVENUES (EXPENSES):
Investment income 9,342,754 1,648,582
Gain (loss) on sale of capital assets - 74,946 Interest expense (12,018,175) -
Total nonoperating revenues (expenses) (2,675,421) 1,723,528
INCOME BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 46,465,675 9,522,690
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 7,860,150 -
Impact fees 319,391 -
Transfers in - 1,410,000
Transfers out - (913,548)
Total capital contributions and transfers 8,179,541 496,452 Changes in net position 54,645,216 10,019,142 NET POSITION:
Beginning of year 335,912,139 15,493,527
End of year 390,557,355$ 25,512,669$
For the Year Ended June 30, 2024
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position City of San Mateo
See accompanying Notes to the Basic Financial Statements. 47 156 of 356
Major Fund Governmental
Activities
Sewer Internal
Fund Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers 64,454,315$ 59,759,772$ Cash payments to suppliers for goods and services (14,569,131) (23,755,401) Cash payments to employees for services (11,962,401) (46,236,108) Cash received from others 848,548 10,579,772 Net cash provided by operating activities 38,771,331 348,035
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund borrowing (lending) - 87,868 Repayment of interfund borrowing (lending) - (87,868) Transfers in - 1,410,000
Transfers out - (913,548)
Net cash provided by noncapital financing activities - 496,452
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Impact fees 319,391 -
Proceeds from sale of capital assets - 95,291 Acquisition of capital assets, net (82,613,901) (2,247,489) Proceeds from issuance of debt 295,479,360 -
Principal payment of long-term debt (273,467,796) - Interest paid on debt and fiscal charges (33,213,724) - Net cash (used in) capital and related financing activities (93,496,670) (2,152,198) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest from investments 9,473,027 1,648,582 Net cash provided by investing activities 9,473,027 1,648,582 Net change in cash and cash equivalents (45,252,312) 340,871 CASH AND CASH EQUIVALENTS:
Beginning of year 230,628,329 35,601,279
End of year 185,376,017$ 35,942,150$
RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO STATEMENT OF NET POSITION:
Cash and cash investments 133,397,595$ 35,942,150$
Restricted cash and investments 51,978,422 -
Total cash and cash equivalents 185,376,017$
35,942,150$
For the Year Ended June 30, 2024
Proprietary Funds
Statement of Cash Flows
City of San Mateo
See accompanying Notes to the Basic Financial Statements. 48 157 of 356
Major Fund Governmental
Activities
Sewer Internal
Fund Service Funds
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income 49,141,096$ 7,799,162$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation and amortization 5,635,414 1,271,051 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:
Accounts receivable, net (16,868,848) 6,250
Deferred outflows - OPEB related (432,609) - Deferred outflows - pension related 314,507 - Accounts payable (13,704) 35,672
Deposits payable (10,231) 47,900
Compensated absences (7,205) -
Claims payable - (8,812,000)
Net OPEB liability 318,374 -
Net pension liability 828,452 -
Deferred inflows - OPEB related 47,763 - Deferred inflows - pension related (181,678) - Total adjustments (10,369,765) (7,451,127)
Net cash provided by operating activities 38,771,331$ 348,035$ For the Year Ended June 30, 2024
City of San Mateo
Statement of Cash Flows (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 49 158 of 356
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50 159 of 356
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 RDA Obligation Retirement Fund (RORF), Successor Agency to RDA Merged Area Fund, and the Successor Agency to RDA Housing Fund.
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Custodial Private Purpose
Funds Trust Funds
ASSETS
Cash and investments 3,538,712$ 5,175,557$
Restricted cash and investments with fiscal agent 3,579,205 1 Total assets 7,117,917 5,175,558
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 113,013 Total deferred outflows of resources - 113,013
LIABILITIES
Accounts payable 147,115 3,188
Interest payable - 710,209
Long-term debt - due within one year - 4,270,000 Long-term debt - due in more than one year - 33,100,992 Total liabilities 147,115 38,084,389
NET POSITION (DEFICIT)
Restricted for:
Individuals, organizations, and other governments 6,970,802 - Held in trust for dissolution of RDA - (32,795,818) Total net position (deficit) 6,970,802$ (32,795,818)$ City of San Mateo
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 53 162 of 356
Custodial Private Purpose
Funds Trust Funds
ADDITIONS:
Fee collections for other governments 420,134$ - $ Special assessments for other governments 4,940,334 - Investment income 181,313 1,084
RDA property tax trust fund distribution - 5,994,500 Total additions 5,541,781 5,995,584
DEDUCTIONS:
Administration 74,357 23,188
Payments on conduit bonds - interest 3,724,713 - Payments on conduit bonds - principal 1,357,527 - Interest expense - 1,252,679
Total deductions 5,156,597 1,275,867
Change in net position 385,184 4,719,717
NET POSITION (DEFICIT):
Beginning of year 6,585,618 (37,515,535)
End of period 6,970,802$ (32,795,818)$
City of San Mateo
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 54 163 of 356
55 NOTES TO THE BASIC FINANCIAL STATEMENTS
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City of San Mateo
Index of Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
57 Page
Note 1 – Summary of Significant Accounting Policies ............................................................................................. 61
A. Financial Reporting Entity ......................................................................................................................... 61 B. Basis of Presentation, Accounting and Measurement Focus ..................................................................... 62 C. Deferred Outflows and Inflows of Resources ............................................................................................ 65 D. Cash, Cash Equivalents and Investments ................................................................................................... 65 E. Restricted Cash and Investments ............................................................................................................... 66 F. Receivables ................................................................................................................................................ 67 G. Interfund Transactions ............................................................................................................................... 67 H. Inventories and Prepaid Items .................................................................................................................... 67 I. Leases ......................................................................................................................................................... 67 J. Subscription-Based Information Technology Arrangements (SBITAs) .................................................... 68 K. Capital Assets ............................................................................................................................................. 69 L. Long-Term Debt ........................................................................................................................................ 70 M. Compensated Absences .............................................................................................................................. 71 N. Claims and Judgements Payable ................................................................................................................ 71 O. Pension Plans ............................................................................................................................................. 71 P. Other Postemployment Benefits (OPEB) ................................................................................................... 72 Q. Fund Balances ............................................................................................................................................ 72 R. Net Position ................................................................................................................................................ 73 S. Property Taxes ........................................................................................................................................... 73 T. Use of Accounting Estimates ..................................................................................................................... 74 U. Implementation of New GASB Pronouncements for the Year Ended June 30, 2024 ................................ 74 V. Upcoming Government Accounting Standards Implementations .............................................................. 74
Note 2 – Cash and Investments ................................................................................................. ................................. 75
A. Demand Deposits ....................................................................................................................................... 76 B. Investments Authorized by the Californ
ia Government
Code and the City’s Investment Policy ............................................................................................... 76 C. Fair Value Measurement ............................................................................................................................ 77 D. Risk Disclosure .......................................................................................................................................... 79 E. Investment in State Investment Pool .......................................................................................................... 82 F. Investment in California Asset Management Program (CAMP) ............................................................... 82 G. Investment in San Mateo County Investment Pool .................................................................................... 82
Note 3 – Loans and Notes Receivable ........................................................................................... ............................. 83
Note 4 – Lease Receivable ........................................................................................................................................... 88
Note 5 – Interfund Transfers ...................................................................................................................................... 90
Note 6 – Capital Assets ................................................................................................................................................ 90
A. Governmental Activities ............................................................................................................................ 90 B. Business-Type Activities ........................................................................................................................... 91
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City of San Mateo
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
58 Page
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 ...................................................................... 103
Note 8 – Special Assessment Debt with No City Commitment .............................................................................. 104
Note 9 – Compensated Absences .............................................................................................................................. 105
A. Governmental Activities .......................................................................................................................... 105 B. Business-Type Activities ......................................................................................................................... 105
Note 10 – Landfill Closure ........................................................................................................................................ 105
Note 11 – Pension Plans ............................................................................................................................................. 106
A. Summary .................................................................................................................................................. 106 B. General Information about Pension ......................................................................................................... 107 C. Social Security ......................................................................................................................................... 112
Note 12 – Other Postemployment Benefits .............................................................................................................. 113
A. Summary .................................................................................................................................................. 113 B. General Information about OPEB ............................................................................................................ 113 C. Net 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 Position ......................................................................................................... 119 B. Expenditures Exceeding Appropriations .................................................................................................. 119
Note 16 – Fund Balance Classification ..................................................................................................................... 120
Note 17 – Net Investment in Capital Assets ............................................................................................................. 121
Note 18 – Successor Agen
cy Private Purpose Trust For Assets of Former Redevelopment ............................... 121
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City of San Mateo
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
59 Page
Note 19 – Changes to or within the Financial Reporting Entity ................................................................. .......... 122
Note 20 – Commitments and Contingencies ............................................................................................................ 123
A. Litigation .................................................................................................................................................. 123 B. Contingent Liabilities ............................................................................................................................... 123 C. Federal and State Grants .......................................................................................................................... 123 D. Contractual Commitments ....................................................................................................................... 123
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City of San Mateo
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
61 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of San Mateo, California (the “City”) have been prepared in conformity with Accounting Principles Generally Accepted in the United States 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 financial reporting st andards in the United States. The more significant of the City’s accounting policies are described below.
A. Financial Reporting Entity
The City was incorporated as a charter city on Septembe r 4, 1894; the current charter was adopted in 1971 and revised in 2002. The City operates under the Council-Manager form of government and provides the following services: police; building inspection; parks and streets; san itation; 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 other organizations for which the primary government is accountable and their exclusion would cause the reporting en tity’s financial statements to be misleading or incomplete.
Blended component units, although legally separate entities, are, in substance part of the government’s operation and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government.
Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substan tially the same as the City’s and there is a financial benefit or burden relationshi p between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclus ively, benefits the City, even though it does not provide services directly to it.
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 direct ors 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 component units, alt hough legally separate entities, are in substance, part of the City’s operations and financial information was re ported with the primary government. The activities of the JPFA are accounted in the various governmental funds of the City.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
62 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation, Accounting and Measurement Focus
The accounts of the City are organized on the basis of f unds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by pr oviding a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions.
The minimum number of funds is maintained in accordance with legal and managerial requirements.
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduc iary activities of the City are not included in these statements.
These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital asset s, as well as infrastructure assets, and long-term liabilities, are included in the acco mpanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accr ual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expe nses, gains, losses, assets, deferred outflows of resources, liabilities and deferred inflows of resources resulting from non-exchange transactions are recognized in accordance with the requirements of U.S. GAAP.
Program revenues include charges for ser vices, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Program revenues for the City are classified in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, pa yables and receivables. All internal balances in the Statement of Net Po sition 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, tho se transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
Transfers in/out
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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
63 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation, Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expend itures of the current period. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be availa ble to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days for all revenues except grants, which use a six-month availability period.
Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in-lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all c onsidered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected with in the availability period.
Other revenue items are considered to be measurable and available when cash is received by the government.
Revenue recognition is subject to the measurable and av ailable criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place.
Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions have been recognized as revenues when all applicable eligibility requirements have been met.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds:
General Fund 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.
General Capital Projects 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 intergov ernmental revenues, Measure A (half cent sales tax), developer impact fees, and transfers from other governmental funds.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
64 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation, Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
A separate column representing internal service funds is also presented in these statem ents. However, internal service balances and activities have been combined with the governmental activities 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 and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under th e accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are rec ognized in the period in which the liability is incurred.
In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those re venues that are generated from 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 fund:
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 charges to user departments and the expenses related to the maintenance of City vehicles and buildings.
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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
65 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation, Accounting and Measurement Focus (Continued)
Fiduciary Fund Financial Statements (Continued)
Fiduciary fund types are accounted fo r according to the nature of the fund. Custodial 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. Private-purpose trust funds account for resources of all other trust arrangements in which principal and income benefit individuals, privat e organizations, or other governments (i.e. unclaimed property/escheat property). They are also used to account for various 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 include 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 the Redevelopment Agency (Successor Agen cy) 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 serv es as the governing board of the Successor Agency. In general, 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 contractual 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 Successor 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 deem ed 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. Refer to Note 18 for additional information relating the Successor Agency.
C. Deferred Outflows and Inflows of Resources
The Statement of Net Position and Balance Sheet – Governmental Funds reports separate sections for Deferred Outflows of Resources, and Deferred In flows of Resources, when applicable.
Deferred Outflows of Resources represent a consumption of net assets that applies to 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.
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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
66 Note 1 – Summary of Significant Accounting Policies (Continued)
D. Cash, Cash Equivalents and Investments (Continued)
Investments are reported in the accompan ying financial statements at fair value, except for certain investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates. Ch anges in fair value that occur duri ng a fiscal year are recognized as investment income reported for that fiscal year, a nd may result in negative in vestment income in the accompanying financial statements. Investment income includes interest earnings, 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, ex cept for investment 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 statement of cash fl ows, amounts reported as cash and cas h equivalents, include amounts on deposit in the City pool and any short-term, highly liqui d investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
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
In addition, other disclosures are specified 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 for measuring fair value, and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
Levels of inputs are as follows:
Level 1 – Inputs are unadjusted, quot ed prices for identical 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 reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.
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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
67 Note 1 – Summary of Significant Accounting Policies (Continued)
F. Receivables
Customer or trade receivables are reported as “account s receivable” and are 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 other funds” or “advances to/from other funds” (i.e., the current portion of interfund loans). Any residual balances out standing 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 asset) in the government‐ wide financial statements. The City recognizes lease liabilities with an initial, individual value of $100,000 or more.
At the commencement of a lease, the City 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 commen cement 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 as sets into service. Lease assets are amortized 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.
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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
68 Note 1 – Summary of Significant Accounting Policies (Continued)
I. Leases (Continued)
Lessee (Continued)
The lease term includes the noncancellable period of the lease. Lease payments 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.
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 sp ecial purpose facilities, office and comm ercial 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 receivabl e 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 resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses 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 circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
J. Subscription-Based Information Technology Arrangements (SBITAs)
The City has a policy to recognize a SBITA liability and a right ‐to‐use subscription asset (SBITA asset) in our financial statements with an initial, individual value of $100,000 or more with a subscription term greater than one year.
At the commencement of a subscription, when the subscription asset is placed into service, the SBITA liability is measured at the present value of payments expected to be made during the subscription term. Future subscription payments are discounted using the City 's incremental borrowing rate and the City recognizes amortization of the discount on the subscription liability as interest expense in subsequent financial reporting periods.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
69 Note 1 – Summary of Significant Accounting Policies (Continued)
J. Subscription-Based Information Technology Arrangements (SBITAs) (Continued)
SBITA assets are measured as the sum of the initial subscription liability, payments made to the SBITA vendor before the commencement of the lease term, and capita lizable implementation costs less any incentives received from the SBITA vendor at or before the commencement of the subscription term. Subscription assets are amortized using the straight-line method over the subscription term.
Key estimates and judgments re lated to SBITAs include how the City de termines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
- The City uses the interest rate charged by the SBIT A vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.
- The subscription term includes the period during whic h the City has a noncancelable right to use the underlying IT asset. The subscription term also includes periods covered by an option to extend if it is reasonably certain to be exercised.
- Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option years th at the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a reme asurement of a subscription and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Right-to-use subscription assets are reported along with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.
K. 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 recorded 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 capitali zation 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
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
70 Note 1 – Summary of Significant Accounting Policies (Continued)
K. Capital Assets (Continued)
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
Machinery and equipment 2 - 30
Infrastructure 25 - 60
Lease and subscription assets Contract term
For all infrastructure systems, the C ity 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 purificati on and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storm water conveya nce system, and buildings combined with the site amenities such as parking and landscaped 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 prope rty 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.
The accumulated depreciation from the da te of construction/acqui sition to the current da te was computed using industry accepted life expectancies for each infrastructur e subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.
L. 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
71 Note 1 – Summary of Significant Accounting Policies (Continued)
L. Long-Term Debt (Continued)
Governmental Fund Financial Statements
The governmental fund financial statements do not present long-term debt but are show n in the Reconciliation of the Governmental Funds Balance Sheet to the Governme nt-Wide Statement of Net Position. Governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Debt issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
M. 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 statemen ts. 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, comp ensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund.
N. 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 lia bility 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.
O. Pension Plans
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiducia ry net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 11). For this purpose, benefit paymen ts (including refunds of employee contributions) are recognized when due and payable in acco rdance with benefit terms. Investment s 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 Busi ness-type activities is liquidated from the respective Enterprise Funds.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
72 Note 1 – Summary of Significant Accounting Policies (Continued)
O. Pension Plans (Continued)
The following timeframes are used for pension reporting:
Valuation date June 30, 2022
Measurement date June 30, 2023
Measurement period July 1, 2022 to June 30, 2023
Gains and losses related to changes in total pension liab ility and fiduciary net position are recognized in pension expense systematically over time. The first amortized am ounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be r ecognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactiv e, and retired) as of the beginning of the measurement period.
P. 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 plan’s fiduciary net position have been determined by an independent actuary (Note 12). For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit 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:
Valuation date June 30, 2023
Measurement date June 30, 2023
Measurement period July 1, 2022 to June 30, 2023
Q. 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 binding unless removed in the same manner. The City Council is considered the highest authority for the City. A City Council resolution is required to have fund balance committed.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
73 Note 1 – Summary of Significant Accounting Policies (Continued)
Q. Fund Balances (Continued)
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 ba lance amount. In other governmental funds it is not appropriate to report a positive unassign ed fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for spec ific 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.
R. 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 amortization and re duced by any debt outstanding and any deferred outflows/inflows of resources related to such borrowings that are attributab le to the acquisition, cons truction or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of net investment 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.
S. Property Taxes
San Mateo County (the “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, retaini ng interest and penalties. Secured and unsecured property taxes are assessed on January 1. Secured property tax is due in two installments, 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 proper ty 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
74 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Use of Accounting Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, in some cases when a pplicable, that affect the amounts in the financial statements and the accompanying notes. Actual results could differ from the estimates.
U. Implementation of New GASB Pronouncements for the Year Ended June 30, 2024
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, 20 24. 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. 100 – In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62 . The primary objective of this Statement is to enhance accounting and financial reporting requir ements for accounting changes and e rror corrections to provide more understandable, reliable, relevant, consistent, and comparable inform ation for making decisions or assessing accountability. Implementation of this Statement had a modera te effect on the City’s financial statements for the fiscal year ended June 30, 2024.
V. 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. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information n eeds of financial statement users by updating the recognition and measurement guidance for compensat ed absences. That objective is achie ved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.
GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. This Statement requires a government to assess whether a concen tration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vuln erable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.
GASB Statement No. 103 – In April 2024, GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. Application of this statemen t is effective for the City’s fiscal year ending June 30, 2026.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
75 Note 1 – Summary of Significant Accounting Policies (Continued)
V. Upcoming Government Accounting Standards Implementations (Continued)
GASB Statement No. 104 – In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires certain types of capital asset s to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets re cognized in accordance with Statement No. 87, Leases , and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscripti on assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements , also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.
Application of this statement is effective for the City’s fiscal year ending June 30, 2026.
Note 2 – Cash and Investments
Cash and investments are presented in the accompanying financial statements at June 30, 2024 as follows:
Fiduciary
Governmental Business-T ype Fund Financial
Activities Activities Total Statements Total
Cash and investments
Held by City Treasury 326,227,149$ 133,397,595$ 459,624,744$ 8,714,269$ 468,339,013$ Restricted cash and investments: Held by fiscal agents 21,216,358 51,978,422 73,194,780 3,579,206 76,773,986 Total cash and inv estments 347,443,507$ 185,376,017$ 532,819,524$ 12,293,475$ 545,112,999$ Government -Wide S tatement of Net Position
Cash and investments at June 30, 2024, consisted of the following:
Cash on hand and deposits:
Cash on hand 13,466$
Deposits with financial institution 7,058,913
Total cash on hand and deposits 7,072,379
Investments:
Local Area Investment Funds (LAIF) 21,015,655
CAMP 133,272,859
San Mateo County Pool 52,873,850
Investments 254,104,270
Total inv estments 461,266,634
Cash and investments with fiscal agent 76,773,986
Total cash and inv estments 545,112,999$
The City maintains a cash and investment pool for all funds. Certain restricted funds that are held an invested by independent outside cust odians through contractual ag reements are not po oled. These restricted funds include cash and investment held by trustees.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
76 Note 2 – Cash and Investments (Continued)
A. Demand Deposits
The carrying amounts of the City’s demand deposits were $7,058,913 at June 30, 2024. Bank balances were $5,736,530 at that date, the total amount of which was collateralized or insured wi th securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requir es California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as co llateral. This Code states that colla teral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is consider ed to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash de posits. California law also allows institutions to secure City’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 co llateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insuranc e 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.
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 pr ovisions of the California Government Code or the City's investment policy.
Maximum Maximum
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%
M oney M arket/M utual Funds N/A 20% 10%
Prime Commercial Paper 270 days 10% 5%
M edium-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 ortgage Securities 5 years 10% 5%
* Based on state law requirements or City investment policy requirements, whichever is more restrictive.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
77 Note 2 – Cash and Investments (Continued)
C. Fair Value Measurement
At June 30, 2024, investments, excluding restricted cash a nd investments held by fiscal agent, are reported at fair value based on quoted market prices. The table on the fo llowing page presents the fair value measurements of investments recognized in the accompanying Financial Statem ents 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, 2024.
Treasury Securities, Federal Farm Cred it 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 indic es that are derived principally from or corroborated by observable market data by correlation to other means. Investments included in restricted cash and investments included money market accounts, guaranteed investment contracts, are not subject to fair value hierarchy.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
78 Note 2 – Cash and Investments (Continued)
C. Fair Value Measurement (Continued)
Percentage of
Investment Type Fair Value Investments Level 1 Level 2 Level 3 Investments measured by fair value level:
U.S. Government Treasury and Agencies:
Federal Farm Credit Bank Bonds (FFCB) 9,081,912$ 1.97% -$ 9,081,912$ - $ Federal Home Loan Bank Bonds (FHLB) 30,824,853 6.68% - 30,824,853 - Federal Home Loan Mortg. Corp. (FHLMC) 4,263,437 0.92% - 4,263,437 - Federal Natl. Mortg. Assn. Notes (FNMA) 4,751,341 1.03% - 4,751,341 - US Treasuries 99,998,532 21.68% - 99,998,532 - Corporate Notes:
Amazon.com Inc 2,325,844 0.50% - 2,325,844 - Apple Inc 705,069 0.15% - 705,069 - Bank of America Corp. 2,844,241 0.62% - 2,844,241 - Bank of Montreal 686,982 0.15% - 686,982 - Berkshire Hathaway 806,141 0.17% - 806,141 - Caterpillar Financial Service 2,944,028 0.64% - 2,944,028 - Charles Schwab Corp. 693,574 0.15% - 693,574 - Chubb INA Holdings Inc. 1,451,466 0.31% - 1,451,466 - Cisco Systems Inc. 1,189,790 0.26% - 1,189,790 - Duke Energy Carolinas LLC 1,923,080 0.42% - 1,923,080 - Guardian Life 1,544,775 0.33% - 1,544,775 - Home Depot Inc 1,690,101 0.37% - 1,690,101 - Honeywell Intl 2,216,156 0.48% - 2,216,156 - John Deere Capital Corp 1,978,757 0.43% - 1,978,757 - JP Morgan Chase & Co 924,024 0.20% - 924,024 - Mass Mutual 2,827,871 0.61% - 2,827,871 - Metlife 2,631,692 0.57% - 2,631,692 - Morgan Stanley 994,345 0.22% - 994,345 - National Rural Utilities 2,746,799 0.60% - 2,746,799 - New York Life Global 3,117,325 0.68% - 3,117,325 - Northwestern Mutual 1,979,833 0.43% - 1,979,833 - Paccar Financial Corp 1,287,388 0.28% - 1,287,388 - Prologis 2,617,131 0.57% - 2,617,131 - Realty Income Corp 2,138,252 0.46% - 2,138,252 - Royal Bank of Canada 3,049,571 0.66% - 3,049,571 - Target Corp 395,506 0.09% - 395,506 - Toronto-Dominion Bank 4,123,141 0.89% - 4,123,141 - Toyota Motor Credit Corp 2,308,032 0.50% - 2,308,032 - Truist Financial Corp 416,310 0.09% - 416,310 - United Health Group Inc 2,545,486 0.55% - 2,545,486 - Wal-Mart Stores 2,119,168 0.46% - 2,119,168 - Supranational 2,829,727 0.61% - 2,829,727 - Asset-Backed Securities 17,236,645 3.74% - 17,236,645 - Collateralized Mortgage Obligations 24,944,160 5.41% - 24,944,160 - Total investments subject to fair value 253,152,485 -$ 253,152,485$ - $ Investments not subject to the fair value hierarchy:
Money Market Funds 951,785 0.21%
Local Agency Investment Fund 21,015,655 4.56%
California Asset Management Program 133,272,859 28.89% San Mateo County Pool 52,873,850 11.46%
Total investments 461,266,634$ 100.00%
Fair Value Measurement Using
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
79 Note 2 – Cash and Investments (Continued)
D. Risk Disclosure
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 wi ll 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., broker-dealer) to a tr ansaction, 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 secur ities 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 deposited by the public ag encies. 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, 2024, the City’s de posits (bank balances) were collateralized under California Law.
Disclosure Relating to Concentration of Credit Risk
The investment policy of the City contains requirements th at 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, 2024, the City had the followings investment (other than U.S. Treasury securities, mutual funds, and external investment pools) that represents 5% or more of the City's total investments:
Issuer Amount
Federal Home Loan Bank Bonds (FHLB) 30,824,853$
Inve stme nt Type
Federal Agency Obligations
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 i nvestments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
80 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) 9,081,912$ - $ - $ 4,679,222$ 4,402,690 $ - $ Federal Home Loan Bank Bonds (FHLB) 30,824,853 - 21,412,326 4,805,954 4,606,573 - Federal Home Loan Mortg. Corp. (FHLMC) 4,263,437 - 1,416,638 1,429,120 1,417,679 - Federal Natl . Mortg. Assn. Notes (FNMA) 4,751,341 - 480,858 2,857,115 - 1,413,368 US Treasuries 99,998,532 17,867,227 41,668,364 8,237,372 14,053,104 18,172,465 Corporate Notes:
Am azon.com Inc 2,325,844 - - 2,325,844 - - Apple Inc 705,069 705,069 - - - - Bank of America Corp. 2,844,241 - 1,933,942 910,299 - - Bank of Montreal 686,982 686,982 - - - - Berkshire Hathaway 806,141 - 806,141 - - - Caterpillar Financial Service 2,944,028 1,500,355 1,443,673 - - - Charles Schwab Corp. 693,574 - - 693,574 - - Chubb INA Holdings Inc. 1,451,466 - 1,451,466 - - - C i sco System s Inc. 1,189,790 - - 1,189,790 - - Duke Energy Carolinas LLC 1,923,080 - - - - 1,923,080 G uardian Life 1,544,775 - - 800,707 - 744,068 Home Depot Inc 1,690,101 - 1,690,101 - - - Honeywell Intl 2,216,156 - - 694,314 1,521,842 - John Deere Capital Corp 1,978,757 - - 995,740 - 983,017 JP Morgan Chase & Co 924,024 - 924,024 - - - Mass Mutual 2,827,871 1,502,661 1,325,210 - - - Metlife 2,631,692 - 1,144,460 - - 1,487,232 Morgan Stanley 994,345 - 994,345 - - - National Rural Utilities 2,746,799 1,775,043 - - - 971,756 New York Life Global 3,117,325 - 1,131,377 1,985,948 - - Northwestern Mutual 1,979,833 - - - - 1,979,833 Paccar Financial Corp 1,287,388 - - 1,287,388 - - Prologis 2,617,131 - - - 2,617,131 - Realty Income Corp 2,138,252 - 482,109 1,656,143 - - Royal Bank of Canada 3,049,571 - 1,194,349 1,855,222 - - Target Corp 395,506 - - - - 395,506 Toronto-Dominion Bank 4,123,141 1,323,600 2,799,541 - - - Toyota Motor Credit Corp 2,308,032 - - 2,308,032 - - Truist Financial Corp 416,310 - - 416,310 - - United Health Group Inc 2,545,486 - 754,823 1,790,663 - - Wal-Mart Stores 2,119,168 - 170,540 - 1,948,628 - Supranational 2,829,727 - 1,415,867 - 1,413,860 - Asset-Backed Securities 17,236,645 2,997,824 5,168,137 4,553,777 1,069,296 3,447,611 Collateralized Mortgage Obligations 24,944,160 809,411 - 2,167,880 11,718,204 10,248,665 Money Market Funds 951,785 - 951,785 - - - Local Agency Investment Fund 21,015,655 21,015,655 - - - - California Asset Management Progra m 133,272,859 133,272,859 - - - - San Mateo County Pool 52,873,850 52,873,850 - - - - Total investments 461,266,634$ 236,330,536 $ 90,760,076 $ 47,640,414 $ 44,769,007$ 41,766,601$ Maturities (in years)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fu lfill 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 in stance, 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
81 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, 2024, 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 overnm ent 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 National Mortg. Assn. Notes (FNMA) Aaa AA+
US Treasuries Aaa to P-1 AA+ to A-1 +
Corporate Notes:
Am azon.com Inc A1 AA
Apple Inc Aaa AA+
Bank of Am erica Corp A1 A-
Bank of Montrea
l A2 A-
Berkshire Hathaway Aa2 AA
Caterpillar Financial Service A2 A
Charles Schwab Corp A2 A-
Chubb INA Holdings Inc A3 A
C i sco System s Inc A1 AA-
Duke Energy Carolinas LLC Aa3 A
Gu ard ia n Life A a 1 A A +
Hom e Depot Inc A2 A
Honeywell Intl A2 A
John Deere Capital Corp A1 A
JP Morgan Chase & Co A1 A-
Mass Mutua l Aa3 AA+
Metlife Aa3 AA-
Morgan Stanley A1 A-
National Rural Utilities A1 to A2 A-
New York Life Global Aaa AA+
Northwestern Mutua l Aaa AA+
Paccar Financial Corp A1 A+
Prologis A3 A
Realty Income Corp A3 A-
Royal Bank of Canada A1 A
Target Corp A2 A
Toronto-Dom inion Bank A1 A
Toyota Motor Credit Corp A1 A+
Truist Financial Corp Baa1 A-
United Health G roup Inc A2 A+
Wal-Mart Stores Aa2 AA
Asset-Backed Securities Aaa to Not Rated AAA to Not Rated Collateralized Mortgage Obligations Aaa AA+
Local Agency Investm ent 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 m
Credit Quality Ratings
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
82 Note 2 – Cash and Investments (Continued)
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. As of June 30, 2024, the City had $21,015,655 invested in LAIF. 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. LAIF is reported at amortized cost, which approximates fair value.
F. Investment in California Asset Management Program (CAMP)
As of June 30, 2024, the City had $133,272,859 invest ed in the California Asset Management Program (CAMP), in which the City is a voluntary participant. 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 Calif ornia 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 Government Code. The total amount invested by all public agencies in CAMP at June 30, 2024 was $20.5 billion. A board of five trust ees who are officials or employees of public agencies has oversight responsibility for CAMP. The 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, 2024 the amortized cost approximated is the City’s cost.
G. Investment in San Mateo County Investment Pool
As of June 30, 2024, the City had $52,873,850 invested in the San Mateo County Investment Fund (County Pool) that is regulated by Code Section 1642 9 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, collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. The fair value factor of 0.9913 was used to calculate the fair value of the investments in the County Pool. At June 30, 2024, the total amount invested by all public agencies in the County Pool was approximately $8.4 billion.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
83 Note 3 – Loans and Notes Receivable
At June 30, 2024, loans and notes receivable consisted of the following:
Loans and
L oans and Notes Allowance for Notes Receiv able, Unav ailable Receiv able Doubtful Accounts Net Rev enue
Governmental Activities:
First-time Homebuyer Loans 11,433,130 $ (11,407,808) $ 25,322 $ - $ Home Rehabilitation Loans 529,907 - 529,907 117,300 106 N. El Dorado 450,000 (450,000) - - Darcy Building 1,346,991 (1,164,564) 182,427 635 Edgewater Isle Senior Apartments 5,098,866 (5,098,866) - - Belmont Building 800,000 (800,000) - - St. Matthew Hote l 2,827,395 (2,827,395) - - Rotary Hacienda & Rotary Floritas 5,154,873 (4,525,673) 629,200 - First Step for Families (Turning Point) 751,033 (751,033) - - 12 N. Idaho Street 100,000 (100,000) - - 200 S. Delaware Street 2,154,555 (2,154,555) - - 232 S. Humboldt Street 557,500 (557,500) - - 11 S. Delaware Street 1,279,921 (1,279,921) - - El Camino Family Housing 3,925,652 (3,925,652) - - M P San M ateo Transit Associates 8,572,781 (8,572,781) - - M P Delaware Pacific Associates LP 1,240,518 (1,240,518) - - MP Foster Square 385,883 (385,883) - - Gateway Commons Assessment Loan 281,977 - 281,977 24,805 Cal Home Loans 373,357 - 373,357 55,757 HIP Housing - 1100 Cypress Avenue 1,252,200 (1,252,200) - - Bay M eadows Affordable Association 1,871,294 - 1,871,294 155,128 Child Care Facility Project Loans 770,789 (770,789) - - M P Downtown San M ateo Associates LP 5,857,500 (5,857,500) - - Total Governmental Activities 57,016,122$ (53,122,638) $ 3,893,484 $ 353,625 $ Business-Type Activities:
Town of Hillborough 38,999,057 $ - $ 38,999,057$ Total Business-Type Activities 38,999,057$ - $ 38,999,057$
First-Time Homebuyer Loans
The City has had provided various loan programs for firs t time homebuyers since 1989. In general, they provide secondary financing for low and moderate income buyers in the City that have deferred payments in order to allow the buyer to maximize their purchasing capacity. The City, actin g as the successor agency of the former redevelopment agency, engages in programs designed to encourage construction or improvement in low-to-moderate income housing or other projects. Under these programs, loans are provided under favorable terms to hom eowners or developers who agree to spend these funds in accordance with the City’s terms. The am ounts for potential loan forgiveness represent the best estimate of the amount of loans receivable that ma y not be collectible from borrowers. It does not necessarily reflect subsequent actual payments, which could differ from expectations.
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 in terest 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 appreciation based on th e percentage of the City loan to original purchase price.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
84 Note 3 – Loans and Notes Receivable (Continued)
First-Time Homebuyer Loans (Continued)
First Time Buyer Resale Program – Subsequent buyers 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 ne w eligible buyer at the restricted sales price. If the City does not exercise the option to purchase, th e unit can be sold at fair market valu e 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 amortized 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 pr ovides 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 first-time homebuyers down payment assistance for the purchase of units at Meadow Court. The loans are secured by a second deed of trust w ith 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.
106 N. El Dorado
The City loaned $450,000 to Housing Association for 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 form er 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
85 Note 3 – Loans and Notes Receivable (Continued)
Edgewater Isle Senior Apartments
On June 30, 2000, the City and the former Redevelopment Agency made a loan 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 tran sfer of the property, whichever comes first.
Belmont Building
On June 30, 2000, the City and the former Redevelopment Agency made two loans, the pr oceeds of which were used to convert the Belmont building into six 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 develo per’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 Agency entered into a Development and 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, whic h 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.
First Step for Families (Turning Point)
On June 26, 1988, the City provided zero interest deferred 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
86 Note 3 – Loans and Notes Receivable (Continued)
12 N. Idaho Street
In 1994, HAND, Inc., a non-profit organization, received loans of $100,000 fro m 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 Redevelopment Agency loaned $1,266,000 to HAND to acquire and rehabilitate sixteen units at 200 S. Delaware 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., received 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 are 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 closing, 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 prin cipal plus remaining accrued interest). The other original terms remained the same for another 25 years.
MP San Mateo Transit Associates
In November 2006, the City and the former Redevelopment Agency entered into a lo an agreement with the Mid- Peninsula Housing Coalition. The agreement includes three promissory notes in the amounts of $1,230,000 (City funds), $1,200,000 (Agency funds), and $2,870,00 0 (Agency funds), which bear 3% inte rest. 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 fro m 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 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. In October 2009, the City received Inf ill 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
87 Note 3 – Loans and Notes Receivable (Continued)
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 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.
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 “Residual 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 fifty-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 pa ying for a special assessment for needed repairs at the complex. This agreement provides eligible owners of the a ffordable units loans 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.
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 fo r the acquisition of 1110 Cypress Avenue in the City of San Mateo, a 16-unit apartment complex, for the purpose of providing afford able 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.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
88 Note 3 – Loans and Notes Receivable (Continued)
Bay Meadows Affordable Housing
In December 2018, the City lent $2,0 00,000 to Bay Meadows Affordable Asso ciates, LP for the construction of 68 family rental units. The interest rate is 3%. Annual paym ents are due beginning 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 Reso lution 2018-107, establishing the Interim Child Care Fund Guidelines and authorized staff to release a Notice of Funding 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 differing 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. The 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 H ousing Asset Funds), which bear 3% inter est. Beginning with borrower’s first fiscal year following the first year after receipt of the certificat e of occupancy, borrower sha ll make annual payments of principal and interest to the City only from “Residual 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 fifty-seven (57) years from the date of recordation of the leasehold deed of trust.
Town of Hillsborough
In June 2022, the City entered into a capital cost repayment agreement with the Town of Hillsborough (the “Town”) for the payment of the Town’s percentage of project cost s for clean water projects. The City begun construction on a comprehensive suite of capital improvements referred to as the “Clean Water Program,” including capital improvements to the sewage treatment plant. The cost s of the sewage treatment plant are allo cated based on predetermined factors.
The capital cost repayment agreement carries and interest rate of 1.91% with a term of 30 years. Payments will be in addition to the periodic charges for wastewater treatment servi ces. As of June 30 2024, the balance of the capital cost repayment agreement was $38,999,057.
Note 4 – Lease Receivable
The portion of the City’s property is leased to others. Such 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 5 to 27 years. The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2024, the City recognized $647,110 in lease revenue and $330,229 in interest revenue.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
89 Note 4 – Lease Receivable (Continued)
A summary of changes in lease receivable for the fiscal year ended June 30, 2024 is as follows:
Balance Balance Due within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Leases receivable 10,127,777$ 358,785$ (453,988)$ 10,032,574$ 485,582$ 9,546,992$ Classification
As of June 30, 2024, the required payments for these leases, including interest, are:
Year Ending
June 30, Principal Interest Total
2025 485,582$ 295,952$ 781,534$
2026 461,841 281,063 742,904
2027 329,837 269,268 599,105
2028 348,615 259,177 607,792
2029 391,984 247,812 639,796
2030-2034 2,256,557 1,044,739 3,301,296 2035-2039 1,708,397 740,285 2,448,682 2040-2044 2,144,148 456,246 2,600,394 2045-2048 1,905,613 109,108 2,014,721 Total 10,032,574$ 3,703,650$ 13,736,224$
As of June 30, 2024, the amounts re ported as deferred inflows of resources will be recognized as lease revenue as follows:
Year Ending Amortization
June 30, Schedule
2025 659,070$
2026 617,964
2027 481,758
2028 472,552
2029 472,552
2030-2034 2,338,839
2035-2039 1,550,238
2040-2044 1,516,916
2045-2048 1,112,405
Total 9,222,294$
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
90 Note 5 – Interfund Transfers
Interfund transfers during the year ended June 30, 2024, consisted of the following:
Transfers In Transfers Out Amount Purpose
General Projects Capital Projects Fund General Fund 16,581,401$ Capital projects General Projects Capital Projects Fund Construction Services Special Revenue Fund 300,397 Capital projects General Projects Capital Projects Fund Gas Tax Special Revenue Fund 710,758 Capital projects General Projects Capital Projects Fund Road Maintenance and Rehabilitation Fund 97,749 Capital projects General Projects Capital Projects Fund Solid Waste Special Revenue Fund 437,480 Capital projects General Projects Capital Projects Fund Traffic Impact Fee Special Revenue Fund 1,046,931 Capital projects General Projects Capital Projects Fund Parks and Recreation Special Revenue Fund 1,032,914 Capital projects General Projects Capital Projects Fund Landfill Bond Debt Service Fund 35,947 Capital projects General Projects Capital Projects Fund Vehicle and Equipment Replacement Internal Service Fund 913,548 Capital projects Subtotal 21,157,125
General Fund Construction Services Special Revenue Fund 5,499,933 Other purposes General Fund Gas Tax Special Revenue Fund 1,747,500 Other purposes Subtotal 7,247,433
Vehicle and Equipment Replacement Internal Service Fund General Fund 410,000 Cost allocation Comprehensive Liability Insurance Internal Service Fund General Fund 1,000,000 Cost allocation General Obligation Bond Debt Service Fund General Fund 2,691,887 Debt service Total 32,506,445$
Note 6 – Capital Assets
A. Governmental Activities
The summary of changes in governmental activities capital assets for the year ended June 30, 2024, is as follows:
Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated
Land 52,064,002$ -$ -$ -$ 52,064,002$ Construction in progress 25,161,460 26,755,899 (511,334) (20,993,884) 30,412,141 Total capital assets, not being depreciated 77,225,462 26,755,899 (511,334) (20,993,884) 82,476,143 Capital assets, being depreciated/amortized
Building and improvements 192,797,505 27,765 - 1,793,966 194,619,236 Machinery and equipment 35,497,334 2,456,294 (1,131,682) - 36,821,946 Infrastructure 593,431,484 - - 19,199,918 612,631,402 Leased assets - buildings and improvements 2,174,617 - - - 2,174,617 Subscription assets 5,788,427 1,077,582 - - 6,866,009 Total capital assets, being depreciated/amortized 829,689,367 3,561,641 (1,131,682) 20,993,884 853,113,210 Accumulated depreciation/amortization:
Building and improvements (80,765,528) (5,262,168) - - (86,027,696) Machinery and equipment (26,885,002) (1,746,523) 1,033,036 - (27,598,489) Infrastructure (321,576,337) (14,315,189) - - (335,891,526) Leased asset - buildings and improvements (1,178,668) (589,334) - - (1,768,002) Subscription assets (768,547) (1,000,824) - - (1,769,371) Total accumulated depreciation/amortization (431,174,082) (22,914,038) 1,033,036 - (453,055,084) Total capital assets, being depreciated/amortized, net 398,515,285 (19,352,397) (98,646) 20,993,884 400,058,126 Total capital assets, net 475,740,747$ 7,403,502$ (609,980)$ -$ 482,534,269$
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
91 Note 6 – Capital Assets (Continued)
A. Governmental Activities (Continued)
Depreciation and amortization expense were charged to the functions/programs of the governmental activities as follows:
General government 890,796$
Community development 260,592
Public safety 1,723,432
Public works 14,280,867
Parks and recreation 2,880,803
Library 1,606,497
Internal service funds 1,271,051
Total depreciation/amortization expenses 22,914,038$
B. Business-Type Activities
The summary of changes in business-type activities capital assets for the year ended June 30, 2024, is as follows:
Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated
Land 4,052,298$ -$ -$ -$ 4,052,298$ Construction in progress 530,698,148 90,274,678 - (11,307,285) 609,665,541 Total capital assets, not being depreciated 534,750,446 90,274,678 - (11,307,285) 613,717,839 Capital assets, being depreciated/amortized
Sewer treatment plant
and transmission lines 279,270,582 - - 11,307,285 290,577,867 Machinery and equipment 2,325,728 199,373 - - 2,525,101 Leased assets - machinery and equipment 110,037 - - - 110,037 Total capital assets, being depreciated/amortized 281,706,347 199,373 - 11,307,285 293,213,005 Accumulated depreciation/amortization:
Sewer treatment plant
and transmission lines (115,793,403) (5,460,029) - - (121,253,432) Machinery and equipment (1,223,400) (138,706) - - (1,362,106) Leased assets - machinery and equipment (34,540) (36,679) - - (71,219) Total accumulated depreciation/amortization (117,051,343) (5,635,414) - - (122,686,757) Total capital assets, being depreciated/amortized, net 164,655,004 (5,436,041) - 11,307,285 170,526,248 Total capital assets, net 699,405,450$ 84,838,637$ -$ -$ 784,244,087$
Depreciation and amortization expense was charged to the Sewer Fund in the amount of $5,635,414.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
92 Note 7 – Long-Term Liabilities
A. Summary
Annual Original
Final Interest Principal Issue Outstanding at
Maturity Rate Installments Amounts June 30, 2024
Governmental Activities
Direct Borrowing:
CEC Streetlight Loan 2030 1.00% $254,364 - $260,544 3,000,000 $ 1,524,968$ PG&E - Energy Efficiency Retrofit Loans 2031 0.00% $351,219 3,356,274 2,163,827 Advance liability 2047 3.00% $335,000 - $2,530,000 45,765,000 41,430,000 Lease liability 2025 3.00% $442,060 - $611,348 2,169,194 442,060 Subscription liability 2033 1.71% - 3.14% $309,519 - $947,110 4,291,977 3,650,644 Public Borrowing:
General Obligation Bonds, Series 2013
(Library Improvement Project) 2031 3.00% - 4.00% $1,520,000 - $2,070,000 27,295,000 13,030,000 Lease Revenue Bonds, Series 2007A
(Public Safety Project) 2039 Variable rate $480,000 - $1,195,000 17,400,000 12,625,000 Revenue Refunding Bonds, Series 2018A
(Golf Course Project) 2030 2.25% - 5.00% $495,000 - $665,000 6,050,000 3,680,000 Total Governmental Activities 109,327,445$ 78,546,499 $ Business-Type Activities
Direct Borrowing:
Water Infrastructure Finance and Innovation Act
(WIFIA) Loan 2056 1.31% $2,000,000 - $17,407,595 295,479,360 $ 295,479,360 $ Lease Liability 2025 0.46% $37,796 - $37,968 110,037 37,968 Public Borrowing:
Sewer Revenue Bonds, Series 2014 2045 3.00% - 5.00% $670,000 - $2,665,000 32,255,000 25,680,000 Wastewater Revenue Bonds, Series 2019 2050 4.00% - 5.00% $2,520,000 - $16,020,000 236,180,000 236,180,000 Wastewater Revenue Refunding Bonds, Series 2021A 2042 2.00% - 5.00% $530,000 - $935,000 14,265,000 13,070,000 Total Business-Type Activities 578,289,397$ 570,447,328 $ Fidiciary Funds
Public Borrowing:
Tax Allocation Refunding Bonds, Series 2015A 2033 4.00% - 5.00% $530,000 - $4,150,000 31,210,000 $ 29,415,000$ Tax Allocation Refunding Bonds, Series 2017A 2026 2.00% - 5.00% $2,425,000 - $3,100,000 21,440,000 6,045,000 Total Successor Agency 52,650,000$ 35,460,000$
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
93 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities
A summary of changes in the long-term liabilities for the year ended June 30, 2024, is as follows:
Balance Debt Debt Balance Due within Due in More
July 1, 2023 Issued Retired June 30, 2024 One Year Than One Yea r Bonds payable:
General Obligation Refunding Bonds, Series 2013 14,620,000$ - $ (1,590,000)$ 13,030,000 $ 1,660,000 $ 11,370,000 $ plus: unamortized bond premium 1,112,859 - (157,109) 955,750 - 955,750 Lease Revenue Bonds, Series 2007A 13,135,000 - (510,000) 12,625,000 545,000 12,080,000 Revenue Refunding Bonds, Series 2018A 4,200,000 - (520,000) 3,680,000 550,000 3,130,000 plus: unamortized bond premium 286,442 - (47,087) 239,355 - 239,355 Total bonds payable 33,354,301 - (2,824,196) 30,530,105 2,755,000 27,775,105 Advance payable to other government
Advance payable to other government 42,660,000 - (1,230,000) 41,430,000 1,285,000 40,145,000 plus: unamortized advance premium 7,113,351 - (286,444) 6,826,907 - 6,826,907 Total advance payable to other government 49,773,351 - (1,516,444) 48,256,907 1,285,000 46,971,907 Loans payable:
CEC Streetlight Loan 1,770,332 - (245,364) 1,524,968 247,869 1,277,099 PG&E - Energy Efficiency Retrofit Loans 2,515,046 - (351,219) 2,163,827 351,219 1,812,608 Total loans payable 4,285,378 - (596,583) 3,688,795 599,088 3,089,707 Lease liability 1,053,407 - (611,347) 442,060 442,060 - Subscription liability 3,472,655 1,076,231 (898,242) 3,650,644 791,859 2,858,785 Total 91,939,092$ 1,076,231 $ (6,446,812) $ 86,568,511 $ 5,873,007 $ 80,695,504 $ Classification
General Obligation Refunding Bonds, Series 2013
On March 21, 2013, the City issued $27,295,000 principa l 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 General Obligation Bonds. The 2000 and 2004A General Obligation Bonds were used to finance the construction, acquisition and improveme nt of a new main library and the improvement of the City’s branch libraries. The General Obligation Refundi ng Bonds mature annually each August 1 through 2030, with installments ranging from $1,520,000 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 $14,566,575. Fo r the current year, principal and interest paid on the 2013 Refunding Bonds was $2,049,050 and ad valorem property tax net revenues were $2,724,717.
The annual debt service requirements on the 2013 General Obligation Refunding Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2025 1,660,000$ 402,350$ 2,062,350$
2026 1,720,000 351,650 2,071,650
2027 1,775,000 290,350 2,065,350
2028 1,860,000 217,650 2,077,650
2029 1,940,000 151,350 2,091,350
2030-2031 4,075,000 123,225 4,198,225
Total 13,030,000$ 1,536,575$ 14,566,575$
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
94 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities (Continued)
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. Othe r 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 Ra te Bonds mature through April 1, 2039 with installments ranging from $480,000 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 Bond s is based on the weekly variable rate set by the remarketing agent, which can be no greater than 12% per annum. Weekly rates during the fiscal year varied from 0.58% to 3.70%, for an average weekly interest rate for the fiscal year of 2.05%. In addition, the letter of credit is with Wells Fargo and has an annual fee of 0.45%. The City also pays 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% transient 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 $836,307, while 2% transien t occupancy tax revenues (TOT) were $887,679, resulting in a net gain of $51,372. This fund typically generated annual debt service coverage of 2:1, and the accumulated surplus of hotel tax revenues not needed for debt service serve as a built-in hedge against interest rate volatility. Variable rate debt requires that the City constantly monitors risk versus return and consider whether to retain this debt structure. Total principal and inte rest remaining to be paid on the 2007A Lease Revenue Bonds is $12,625,000.
The annual principal requirements on these bonds are as follows:
Year Ending
June 30, Principal Interest* Total
2025 545,000$ - $ 545,000$
2026 580,000 - 580,000
2027 615,000 - 615,000
2028 655,000 - 655,000
2029 695,000 - 695,000
2030-2034 4,130,000 - 4,130,000 2035-2039 5,405,000 - 5,405,000 Total 12,625,000$ -$ 12,625,000$
*Interest based on weekly variable rate, therefore, annual interest requirements indeterminable
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
95 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities (Continued)
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 $151,432. The 2018A Re venue Bonds mature throug h August 1, 2029, with installments ranging from $495,000 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 Au thority. The 2018A Revenue Bonds are subject to early redemption provisions.
Prior to fiscal year 2018-19, the City funded the lease pa yments to the Authority fro m golf charges for services from the enterprise Golf Fund. Beginning fiscal year 2018-19, in recognition of the 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 funded by the City’s General Fund since 2018-19. Principal and interest paid for the current year and golf course facility gross revenues were $665,850 and $3,377,963, respectively.
The total principal and interest remaining to be paid on the Bonds is $4,023,413.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30, Principal Interest Total
2025 550,000$ 119,100 $ 669,100 $
2026 575,000 90,975 665,975
2027 605,000 61,475 666,475
2028 635,000 39,206 674,206
2029 650,000 24,344 674,344
2030 665,000 8,313 673,313
Total 3,680,000$ 343,413 $ 4,023,413 $
Advance Payable to Other Government
On February 27, 2020, the JPFA issued the 2020 Series A and B Lease Revenue Bonds utilizing a Lease-leaseback agreement between the JPFA and the City. The lease agreement required the JPFA to pay upfront for the right to use of the buildings and leasehold improvements, owned by the City, over a period of time corresponding to the JPFA’s debt service requirement. The leaseback agreement required the City to make rental payments in amounts corresponding to the JPFA’s debt services requirements a nd related costs. Per the implementation of GASB 87 Leases, the components of lease-leaseback agreements are to be netted in the financial statements, therefore the Authority will only record an advance receivable from other government for the amount to be paid back by the City for the upfront lease payment which reflects the present value of remaining future lease payments due to the JPFA.
As of June 30, 2024, the City’s advance payable to other government balance was $41,430,000 with a remaining premium on advance balance of $6,826,907. Total principal and interest remaining to be paid on the advance from other government is $65,458,917.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
96 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities (Continued)
Advance Payable to Other Government (Continued)
The annual debt service requirements on the advance payable to other government are as follows:
Year Ending
June 30, Principal Interest Total
2025 1,285,000$ 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 1,440,000 1,575,436 3,015,436
2029 1,490,000 1,524,568 3,014,568
2030-2034 6,780,000 6,759,988 13,539,988
2035-2039 8,140,000 5,013,850 13,153,850
2040-2044 10,010,000 3,142,400 13,152,400
2045-2048 9,550,000 973,600 10,523,600
Total 41,430,000$ 24,028,917 $ 65,458,917 $
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 $3,000,000 for the City-wide LED and High Voltage Conversion project. Loan funds are to be disbursed to the City on a reimbursement basis based on invoices submitted by the City for actual expenditures incurred for the project.
Semiannual payments due to the Energy Commission under th is agreement are expected to be made from savings in energy costs or other available funds. The Loan accrues interest at a rate of 1.00% per annum on the unpaid principal computed from the date of each disbursement to the City.
The annual debt service requirements for the CEC Streetlight Loan were as follows:
Year Ending
June 30, Principal Interest Total
2025 247,869$ 14,633 $ 262,502 $
2026 250,354 12,148 262,502
2027 252,863 9,639 262,502
2028 255,381 7,121 262,502
2029 257,958 4,544 262,502
2030 260,543 1,957 262,500
Total 1,524,968$ 50,042 $ 1,575,010 $
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
97 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities (Continued)
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 $3,356,274 for the Sustainable Solutions Turnkey project. Loan funds are to be disbursed to the City on a reimbursement basis based on invoices submitted by the City for actual expenditures incurred for the project.
Monthly payments due under this agreement are expected to be made from savings in energy costs or other available funds. The loan does not accrue interest.
The annual debt service requirements for the Energy Efficiency Retrofit Loans were as follows:
Year Ending
June 30, Principal Interest Total
2025 351,219$ - $ 351,219$
2026 351,219 - 351,219
2027 351,219 - 351,219
2028 351,219 - 351,219
2029 351,219 - 351,219
2030-2031 407,732 - 407,732 Total 2,163,827$ - $ 2,163,827$
Lease Liability
The City has entered into leases for building space and equipment use. The terms of the agreements range from 3 to 4 years. The calculated interest rate based on the length of the lease is 3.00%. As of June 30, 2024, the capitalized right-to-use assets related to leases were $2,174,617 a nd the total lease liability was $442,060, of which $442,060 is reported as a current liability representing the amount due within the next fiscal year.
The annual debt service requirements for the lease liability were as follows:
Year Ending
June 30, Principal Interest Total
2025 442,060$ 5,448 $ 447,508 $
Subscription Liability
The City has entered into subscrip tion-based information technology arrangements (SBITAs) for services related to cloud-based software applications, data storage and management services. Under the terms of these arrangements, the City does not take possession of the software at any time and the vendor provides ongoing services for the software's operation. The subscription periods vary, with initial non-cancellable terms ranging from 3 to 10 years. The calculated interest rate used was between 1.71% and 3.14%, depending on the length of the SBITA and date of the agreement.
As of June 30, 2024, the capitalized right-to-use assets related to SBITAs were $6,866,009 and the total subscription liability was $3,650,644, of which $ 791,859 is reported as a current liability representing the amount due within the next fiscal year.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
98 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities (Continued)
Subscription Liability (Continued)
The annual debt service requirements for the subscription liability were as follows:
Year Ending
June 30, Principal Interest Total
2025 791,859$ 83,361 $ 875,220 $
2026 731,957 65,026 796,983
2027 486,433 48,762 535,195
2028 500,768 37,429 538,197
2029 359,786 25,768 385,554
2030-2033 779,841 29,652 809,493
Total 3,650,644$ 305,047 $ 3,940,642 $
C. Business-Type Activities
A summary of changes in the long-term liabilities of the business-type activities for the year ended June 30, 2024, is as follows:
Balance Debt Deb t Balance Due w ithin Due in More
July 1, 2023 Issue d Retired June 30, 2024 One Year Than One Year Bonds payable:
Sewer Revenue Bonds, Series 2014A 26,915,000$ -$ (1,235,000)$ 25,680,000$ 1,300,000$ 24,380,000$ plus: unamortized bond premium 1,589,438 - (75,688) 1,513,750 - 1,513,750 Wastewater Revenue Bonds, Series 2019 236,180,000 - - 236,180,000 - 236,180,000 plus: unamortized bond premium 40,594,633 - (1,618,391) 38,976,242 - 38,976,242 Wastewater Revenue Notes, Series 2021B 271,565,000 - (271,565,000) - - - plus: unamortized bond premium 25,270,479 - (25,270,479) - - - Wastewater Revenue Refunding
Bonds, Series 2021A 13,700,000 - (630,000) 13,070,000 660,000 12,410,000 plus: unamortized bond premium 3,320,992 - (174,789) 3,146,203 - 3,146,203 Total bonds payabl e 619,135,542 - (300,569,347) 318,566,195 1,960,000 316,606,195 Notes payable:
Water Infrastructure Finance and
Innovation Act (WIFIA) Loan - 295,479,360 - 295,479,360 - 295,479,360 Total notes payable - 295,479,360 - 295,479,360 - 295,479,360 Lease liability 75,764 - (37,796) 37,968 37,968 - Total 619,211,306$ 295,479,360 $ (300,607,143) $ 614,083,523 $ 1,997,968 $ 612,085,555 $ Classification
Sewer Revenue Bonds, Series 2014A
On July 2, 2014, the City issued Sewer Revenue Bonds, Series 2014A (Series 2014A Bonds), totaling $32,255,000.
The purpose was to refund the City’s outstanding Se wer Revenue Bonds, Series 2003, and finance various improvements to the City’s municipal sewer enterprise.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
99 Note 7 – Long-Term Liabilities (Continued)
C. Business-Type (Continued)
Sewer Revenue Bonds, Series 2014A (Continued)
The Series 2014A Bonds mature through August 1, 2044, with installments ranging from $670,000 to $2,665,000.
The interest on the Series 2014A Bonds is payable semi-annually on February 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 cer tain funds and accounts held under the Indenture. Total principal and interest remaining to be paid on the Bonds is $37,264,561.
The annual debt service requirements on the Series 2014A Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2025 1,300,000$ 992,815 $ 2,292,815 $
2026 1,365,000 926,190 2,291,190
2027 1,435,000 856,190 2,291,190
2028 1,510,000 782,565 2,292,565
2029 1,570,000 721,265 2,291,265
2030-2034 3,585,000 3,207,573 6,792,573
2035-2039 4,260,000 2,526,250 6,786,250
2040-2044 7,990,000 1,518,413 9,508,413
2045 2,665,000 53,300 2,718,300
Total 25,680,000$ 11,584,561$ 37,264,561$
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 $413,160,475.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
100
Note 7 – Long-Term Liabilities (Continued)
C. Business-Type Activities (Continued)
Wastewater Revenue Bonds, Series 2019 (Continued)
The annual debt service requirements on the 2019 Wastewater Bonds were as follows:
Year Ending
June 30, Principal Interest Total
2025 -$ 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 4,830,000 10,518,000 15,348,000
2029 5,070,000 10,270,500 15,340,500
2030-2034 34,300,000 46,713,500 81,013,500
2035-2039 44,930,000 37,170,650 82,100,650
2040-2044 55,690,000 26,417,750 82,107,750
2045-2049 69,170,000 12,928,075 82,098,075
2050 16,020,000 400,500 16,420,500
Total 236,180,000$ 176,980,475$ 413,160,475$
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 W astewater Treatment Plant (WWTP) capital improvements. Of the total issuance amount, the City is responsible for $271,565,000. Interest payments are payable semi- annually on February 1 and August 1, co mmencing February 1, 2022. 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 Notes were refunded with the issuance of the 2024 WIFIA Loans.
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 debt 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
101
Note 7 – Long-Term Liabilities (Continued)
C. Business-Type Activities (Continued)
Wastewater Revenue Refunding Bonds, Series 2021A (Continued)
The Series 2021A Bonds mature annually each August 1 th rough 2041, with installments ranging from $530,000 to $935,000. Interest payments are payable semi- annually on February 1 and August 1, commencing February 1, 2022. The bonds mature through August 1, 204 1, 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 ente rprise and certain funds and accounts held under the Indenture. Total principal and interest remaining to be paid on the Bonds is $18,336,875.
The annual debt service requirements for the Series 2021A Bonds were as follows:
Year Ending
June 30, Principal Interest Total
2025 660,000$ 577,050$ 1,237,050$
2026 690,000 543,300 1,233,300
2027 730,000 507,800 1,237,800
2028 770,000 470,300 1,240,300
2029 810,000 430,800 1,240,800
2030-2034 2,945,000 1,699,625 4,644,625
2035-2039 3,775,000 896,975 4,671,975
2040-2042 2,690,000 141,025 2,831,025
Total 13,070,000$ 5,266,875$ 18,336,875$
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/notes secured by revenues received from the operation of the Sewer Enterprise: Series 2014A Sewer bonds, 2019 Wastewater bonds, 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 $2,291,190, on the 2019 Wastewater bonds was $10,947,250, and on the 2021 Wastewater bonds was $1,239,300. Sewer services net revenues were $49,460,487.
Water Infrastructure Finance and Innovation Act Loan
In 2020, the PFA entered into the Wastewater Infrastructure Finance and Innovation Act (WIFIA) loan agreements with the U.S. Environmental Protection Agency (EPA) for capital improvement projects of the wastewater treatment plant (WWTP), jointly owned by San Mateo and Foster City/EMID, up to $210,339,360 (San Mateo) and $66,860,640 (Foster City/EMID), respectively. In addition, San Mateo’s WIFIA loan for its Basin 2 & 3 collection project allows for loan proceeds up to $85,140,000. San Mateo’s WWTP WIFIA loan bears interest at 1.32% and its Basin 2 & 3 WIFIA loan bears interest at 1.31%. Fo ster City/EMID’s WWTP loan bears interest at 1.14%.
Interest payments and revenue bond retirements are ser viced by lease payments made by the City and Foster City/EMID.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
102
Note 7 – Long-Term Liabilities (Continued)
C. Business-Type Activities (Continued)
Water Infrastructure Finance and Innovation Act Loan (Continued)
On February 9, 2024, EPA approved the loan amendm ents to allow for early draws on the WIFIA loans.
Subsequently, San Mateo and Foster City/EMID submitted draw requisitions for the full amount of their WIFIA loans, $66,860,640 for Foster City/EMID and $295,479,360 for San Mateo.
On February 15, 2024, City received the WIFIA loan proceeds and used part of the loan proceeds to defease the 2021 Wastewater Revenue Notes, Series B. The defeasances were closed on February 15, 2024. Interest payments are payable semi- annually on Februa ry 1 and August 1, commencing August 1, 2024. The bonds mature through August 1, 2055, and bear interest at the rate of 1.31%. Th e total principal and interest remaining to be paid on the bonds at June 30, 2024 was $370,584,812.
The annual debt service requirements for the WIFIA loans outstanding at June 30, 2024 were as follows:
Year Ending
June 30, Principal Interest Total
2025 - $ 3,729,655$ 3,729,655 $ 2026 3,042,797 3,871,849 6,914,646
2027 3,488,616 3,828,980 7,317,596
2028 3,940,356 3,780,190 7,720,546
2029 4,398,095 3,725,400 8,123,495
2030-2034 29,072,176 17,589,540 46,661,716
2035-2039 41,462,643 15,272,811 56,735,454
2040-2044 54,698,022 12,111,171 66,809,193
2045-2049 68,835,928 8,047,004 76,882,932
2050-2054 79,937,906 3,045,066 82,982,972
2055-2056 6,602,821 103,786 6,706,607
Total 295,479,360$ 75,105,452$ 370,584,812$
Lease Liability
The City has entered into a lease for eq uipment use. The terms of the agreem ents was for 3 years. The calculated interest rate based on the length of the lease was 0.46 percent. As of June 30, 2024, the capitalized right-to-use assets related to leases were $110,037 and the total lease lia bility was $37,968, of which $37,968 is reported as a current liability representing the amount due within the next fiscal year.
The annual debt service requirements for the lease liability were as follows:
Year Ending
June 30, Principal Interest Total
2025 37,968$ 94$ 38,062$
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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
A summary of changes in the long-term liabilities of the fiduciary fund financial statements for the year ended June 30, 2024, is as follows:
Balance Debt Debt Balance Due within Due in More
July 1, 2023 Issue d Retired June 30, 2024 One Year Than One Year Fiduciary Activities:
Bonds payabl e:
Tax Allocation Refunding Bonds, Series 2015A 30,680,000$ - $ (1,265,000)$ 29,415,000 $ 1,325,000 $ 28,090,000 $ plus: unamortized bond premium 1,641,067 - (182,340) 1,458,727 - 1,458,727 Tax Allocation Refunding Bonds, Series 2017A 8,855,000 - (2,810,000) 6,045,000 2,945,000 3,100,000 plus: unamortized bond premium 869,743 - (417,478) 452,265 - 452,265 Total bonds payabl e 42,045,810 - (4,674,818) 37,370,992 4,270,000 33,100,992 Total 42,045,810$ -$ (4,674,818)$ 37,370,992$ 4,270,000$ 33,100,992$ Classification
Tax Allocation Refunding Bonds, Series 2015A
On August 5, 2015, the Successor Agency of the Redevel opment 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 through August 1, 2032, with installments ranging from $530,000 to $4,150,000. The interest on the 2015A Refunding Bonds is payable semi-annually on each February 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 $36,574,375.
The annual debt service requirements on the 2015A Refunding Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2025 1,325,000$ 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 4,025,000 1,001,625 5,026,625
2029 3,410,000 815,750 4,225,750
2030-2033 15,440,000 1,446,250 16,886,250
Total 29,415,000$ 7,159,375$ 36,574,375$
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 through August 1, 2025, with installments ra nging from $2,425,000 to $3,100,000. The interest on the 2017A Refunding Bonds is payable semi-annually on each Fe bruary 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 $6,351,125.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
104
Note 7 – Long-Term Liabilities (Continued)
D. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of San Mateo (Continued)
Tax Allocation Refunding Bonds, Series 2017A (Continued)
The annual debt service requirements on the 2017A Refunding Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2025 2,945,000$ 228,625 $ 3,173,625 $
2026 3,100,000 77,500 3,177,500
Total 6,045,000$ 306,125 $ 6,351,125 $
Pledged Revenues
Tax Allocation Bonds held by the Successo r Agency of the Redevelopment Agen cy of the City of San Mateo are secured by property tax revenues. For the current year, principal and interest paid on the Series 2015A and 2017A, Tax Allocation Bonds were $2,692,550 and $3,182,500, r espectively and Redevelopment Agency Property Tax Trust Fund distributions were $5,994,500.
Note 8 – Special Assessment Debt with No City Commitment
The City issued special tax and assessment bonds on behalf of property owners, pursuant to the Improvement Bond Act of 1915 and the Mellow-Roos Community Facilities Act of 1982, to finance the acquisition and construction of certain infrastructure improvements within the assessment districts and community facilities districts.
The City has authorized the formation of the Bay Mea dows Community Facilities District No. 2008-1 (Bay Meadows CFD), acting through its eligible landowner voters, and the issuance of bonds under the public improvement act (Mello- Roos Community Facilities Act of 1982) of the State of California to finance eligible public facilities necessary to serve developing commercial, industrial, residential and/or mixed use developments. The bonds are secured by annual special tax levies or liens placed on the property within the district.
The City is not liable for repayment and acts only as an agent for the property owners in collecting the special taxes or assessments, forwarding the collections to bondholders, and initiating foreclosure proceedings when necessary. These bonds are payable solely from special taxes or assessments, specific reserves, and the proceeds from property foreclosures to be levied by the Bay Meadows CFD. The City is the collecting and paying agent for the debt, but has no direct or contingent liability for the payment of this debt. Accordingly, the special tax bonds are not reported as liabilities in the City’s basic financial statements.
Noncommittal debt amounts issued and outstanding at June 30, 2024 are as follows:
Outstanding
Original Balance
Amount June 30, 2024
CFD 2008-1, Series Special Tax Bonds Refunding Bonds Series 2022 72,345,000$ 71,350,000 $
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
105
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, 2024 is as follows:
Balance Balance Due within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Compensated absences 7,993,834$ 7,319,664$ (7,034,953)$ 8,278,545$ 910,640$ 7,367,905$ Classification
Compensated absences in the governmental activities generally liquidate to the General Fund.
B. Business-Type Activities
A summary of changes in the compensated absences bala nces for the business-type ac tivities for the year ended June 30, 2024 is as follows:
Balance Balance Due within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Compensated absences 1,108,325$ 1,199,221$ (1,206,426)$ 1,101,120$ 121,123$ 979,997$ Classification
Compensated absences in the business-type activities are obligations of the Sewer Fund.
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 Integrat ed Waste Management Board. In fiscal year 1992, the City developed a Closure Plan that in mana gement’s view will meet all regulatory requirements. As stated in the California Code of Regulations, Division 2 Title 27 Article 2 Section 21180, “a) the landfill shall be maintained and monitored for a period of not less than fifteen (15) 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, 2024, the estimated amount of $1,728,952 has been recorded as Landfill Post-Closure Costs Payable in the Government-Wide Financial Statements.
Balance Balance Due within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Yea r Landfill closure and
post-closure costs payable 1,668,873$ 171,337 $ (111,258)$ 1,728,952 $ 115,264 $ 1,613,688$ Classification
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
106
Note 11 – Pension Plans
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Pension contribution made after measurement date:
CalPERS Miscellaneous 8,713,569$ 2,078,566 $ 10,792,135 $ CalPERS Safety 17,313,205 - 17,313,205 Total pension contribution made after measurement date 26,026,774 2,078,566 28,105,340 Change in assumptions
CalPERS Miscellaneous 1,776,099 423,677 2,199,776 Total change in assumptions 1,776,099 423,677 2,199,776 Projected earnings on pension plan investments in excess of actual earnings:
CalPERS Miscellaneous 8,647,864 2,062,891 10,710,755 CalPERS Safety 13,329,014 - 13,329,014 Total projected earnings on pension plan investments in excess of actual earnings 21,976,878 2,062,891 24,039,769 Difference between expected and actual experience
CalPERS Miscellaneous 1,615,510 385,369 2,000,879 CalPERS Safety 1,271,705 - 1,271,705 Total difference between expected and actual experience 2,887,215 385,369 3,272,584 Total deferred outflows of resources
CalPERS Miscellaneous 20,753,042 4,950,503 25,703,545 CalPERS Safety 31,913,924 - 31,913,924 Total deferred outflows of resources 52,666,966$ 4,950,503 $ 57,617,469 $ Net pension liability:
CalPERS Miscellaneous 77,350,265$ 18,451,401 $ 95,801,666 $ CalPERS Safety 191,686,006 - 191,686,006 Total net pension liability 269,036,271$ 18,451,401 $ 287,487,672 $ Deferred inflows of resources:
Difference between expected and actual experience
CalPERS Miscellaneous 414,055$ 98,770 $ 512,825 $ Total difference between expected and actual experience 414,055 98,770 512,825 Total deferred inflows of resources
CalPERS Miscellaneous 414,055 98,770 512,825 Total deferred inflows of resources 414,055$ 98,770 $ 512,825 $ Pension expenses:
CalPERS Miscellaneous 12,743,367$ 3,039,847 $ 15,783,214 $ CalPERS Safety 28,746,375 - 28,746,375 Total net pension expenses 41,489,742$ 3,039,847 $ 44,529,589 $
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
107
Note 11 – Pension Plans (Continued)
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 defined benefit plan administered by California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Bene fit 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 provi sions, assumptions and membership info rmation that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.
Employees Covered
At June 30, 2023, the measurement date, the following employees were covered by the benefit terms for the Plan:
Miscellaneous Plan Safety Plan Total
Active employees 358 106 464 Transferred and terminated employees 467 187 654 Retired employees and beneficiaries 663 405 1,068 Total 1,488 698 2,186
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 beco mes 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 factor, 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 Miscellaneous 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 55 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 9.770% 21.180%
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 are 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 classi c 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
108
Note 11 – Pension Plans (Continued)
B. General Information about Pension (Continued)
Contributions
Section 20814(C) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employe rs 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 during the year (normal cost), with additional amount to finance any unfunded accrued liability (UAL). The City is require d to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measureme nt period ended June 30, 2023 (the measurement date), the average active employee contribution rate is 7 percent of annual pay for the Miscellaneous Plan and 10 percent of annual pay for the Safety Plan, and employer contribution rate is 26.80 percent of annual payroll for the Miscellaneous Plan and 88.67 percent of annual payroll for the Safety Plan. Of note, the pension liability for the service years of former City employees th at transferred to the San Mateo Consolidated Fire Department remains with the City, thus the UAL as a percen tage of payroll is higher, as the UAL is relative to the remaining Safety Plan members (Po lice Department employees). As of June 30, 2024, 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.
For the year ended June 30, 2024, the plan’s contributions made for the Plan was as follows:
Miscellaneous Plan Safety Plan
Contributions - employer 10,792,135 $ 17,313,205 $
Net Pension Liability
The City’s net pension liability is measured as the total pension liability, l ess the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown as follows.
Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
Actuarial Cost M ethod
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Morta l i ty Rate Table(1)
Post Retirement Benefit Increase
Entry Age Normal
6.90%
2.30%
Varies by Entry Age and Service
Derived using CalPERS’ Membership Data for all Funds.
The lesser of contract COLA or 2.30% until Purchasing Power Protection. Allowance floor on purchasing power applies, 2.30% thereafter.
(1)The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
109
Note 11 – Pension Plans (Continued)
B. General Information about Pension (Continued)
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 compound (geometric) returns were calculated over the 20 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 the one calculated using both short- term and long-term returns. The expe cted rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate 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
Assumed Asset
Allocation Real Return
1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
1 An expected inflation of 2.30% was used for this period. 2 Figures are based on the 2021 Asset Liability Management study.
The discount rate used to measure the total pension liability was 6.90% 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 w ould be different from the actuarially assumed discount rate.
Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 Section.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
110
Note 11 – Pension Plans (Continued)
B. General Information about Pension (Continued)
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%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan 137,435,462$ 95,801,666$ 61,286,709$ Safety Plan 255,327,249$ 191,686,006$ 139,435,590$ Plan's Aggregate Net Pension Liability/(Asset)
Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period:
Total Pension
Liab ility
Plan Fiduciary Net
Position
Net Pension
Liab ility
Balance at June 30, 2022 (Valuation Date) 319,268,003 $ 227,767,747 $ 91,500,256 $ Changes in the year:
Service cost 5,920,696 - 5,920,696 Interest on the total pension liabilities 21,858,537 - 21,858,537 Changes in benefit terms 425,881 - 425,881 Differences between expected and actual experience 3,251,428 - 3,251,428 Benefit paym ents, including refunds of m em bers contributions (18,230,555) (18,230,555) - Contributions - em ployer - 10,683,495 (10,683,495) Contributions - em ployee - 2,571,915 (2,571,915) Net investm ent incom e - 14,067,212 (14,067,212) Adm inistrative ex penses - (167,490) 167,490 Net changes 13,225,987 8,924,577 4,301,410 Balance at June 30, 2023 (Measurement Date) 332,493,990$ 236,692,324$ 95,801,666$ Miscellaneous Plan
Total Pension
Liab ility
Plan Fiduciary Net
Position
Net Pension
Liab ility
Balance at June 30, 2022 (Valuation Date) 472,391,862 $ 285,135,370 $ 187,256,492 $ Changes in the year:
Service cost 5,234,236 - 5,234,236 Interest on the total pension liabilities 32,047,044 - 32,047,044 Changes in benefit terms 206,341 - 206,341 Differences between expected and actual experience 2,427,801 - 2,427,801 Benefit paym ents, including refunds of m em bers contributions (26, 386,401) (26,386,401) - Contributions - em ployer - 16,292,527 (16,292,527) Contributions - em ployee - 1,761,725 (1,761,725) Net investm ent incom e - 17,641,331 (17,641,331) Adm inistrative ex penses - (209,675) 209,675 Net changes 13,529,021 9,099,507 4,429,514 Balance at June 30, 2023 (Measurement Date) 485,920,883 $ 294,234,877 $ 191,686,006 $ Safety Plan
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
111
Note 11 – Pension Plans (Continued)
B. General Information about Pension (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2024, the City recognized pension expense in the amount of $15,783,214 and $28,746,375 for the miscellaneous and safety plans, respectively.
The amortization period differs depending on the source of th e 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 lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.
The Expected Average Remaining Serv ice Lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, in active, and retired) in the risk pool. For the Miscellaneous Plan, the EARSL for the Miscellaneous Plan for the 2022-23 measurement period is 2.6 years, which was obtained by dividing the total service years of 3,826 (the sum of remaining service lifetimes of the active employees) by 1,454 (the total number of participants: active, inactive, and retired). For the Safety Plan, the EARSL for the 2021- 22 measurement period is 2.1 years, which was obtained by dividing the tota l service years of 1,459 (the sum of remaining service lifetimes of the active employees) by 696 (t he total number of participants: active, inactive, and retired).
At June 30, 2024, the City reported de ferred outflows of resources and deferr ed 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 10,792,135 $ - $
Difference between projected and actual
earning on pension plan investments 10,710,755 - Changes in assumptions 2,199,776 -
Differences between expected and actual experience 2,000,879 (512,825) Total 25,703,545 $ (512,825) $
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 17,313,205 $ - $
Difference between projected and actual
earning on pension plan investments 13,329,014 - Differences between expected and actual experience 1,271,705 - Total 31,913,924 $ - $
Miscellaneous Plan
Safety Plan
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
112
Note 11 – Pension Plans (Continued)
B. General Information about Pension (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 28,105,340 $ - $
Difference between projected and actual
earning on pension plan investments 24,039,769 - Changes in assumptions 2,199,776 -
Differences between expected and actual experience 3,272,584 (512,825) Total 57,617,469 $ (512,825) $
Total
For the General Information about Pension, for the Miscellaneous and Safety Plans, $10,792,135 and $17,313,205, 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, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Measurement Period
Ended June 30, Miscellaneous Plan Safety Plan Total
2024 4,812,869 $ 3,443,976$ 8,256,845$ 2025 1,793,904 1,321,451 3,115,355 2026 7,498,985 9,489,206 16,988,191 2027 292,827 346,086 638,913 2028 - - - Thereafter - - - 14,398,585$ 14,600,719$ 28,999,304$ 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, 2024 amounted to $5,070,433 of which the City paid $2,535,217.
The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer’s existing retirement system as of January 1, 1992 be covered by either Social Security or an alternative plan. The City’s part-time, seasonal and temporary employees are c overed under an alternative savings plan, which requires these employees and the City to each contribute 3.75% of the employees’ pay for a total of 7.50%.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
113
Note 12 – Other Postemployment Benefits
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
OPEB contribution made after measurement date 1,077,056$ 159,944 $ 1,237,000 $ Net difference between projected and actual
earnings of OPEB Plan investments 431,868 64,133 496,001 Difference between expected and actual experience 3,034,923 450,690 3,485,613 Total deferred outflows of resources 4,543,847$ 674,767 $ 5,218,614 $ Net OPE B L iability 9,481,590$ 1,408,025 $ 10,889,615 $ Deferred inflows of resources:
Difference between expected and actual experience 650,281$ 96,568 $ 746,849 $ Change in assumptions 1,132,773 168,220 1,300,993 Total deferred inflows of resources 1,783,054$ 264,788 $ 2,047,842 $ OPE B E xpense 639,542$ 94,973 $ 734,515 $
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 minimum age 50 with at least 5 years of CalPERS service (or disability) are eligible to receive $160 per month for medi cal insurance premiums paid to CalPERS. This same benefit may continue to a surviving spouse depending on the retirement plan election. As of June 30, 2023, there were 363 retirees receiving post-employment health care benefits from the City.
Employees Covered
As of the June 30, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms:
Active employees 463
Inactive employees or beneficiaries currently receiving benefits 363 Inactive employees entitled to, but not yet receiving benefits 234 Total 1,060
Contribution
Beginning in the fiscal year 2012-13, the City pre-funds th e Plan through California Employers’ Retiree Benefit Trust (CERBT) by contributing the City’s Actuarially Determined Contribution (ADC) every year. For the reporting period 2023-24, the City contributed $880,0000.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
114
Note 12 – Other Postemployment Benefits (Continued)
B. General Information about OPEB (Continued)
Contribution (Continued)
CERBT is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to prefund retirement health benefits. The CERBT issues a publicly available financial report that included financial statements and required supplementary information for the City, not individualizing, but in aggregate with the other CERBT participants. That report may be obtained by contacting CalPERS.
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, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023.
Actuarial Assumptions
The total OPEB liability, measured as of June 30, 2023, was determined using the following actuarial assumptions:
Actuarial Valuation Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost, Level % of pay Asset Valuation Method Market Value
Inflation 2.50%
Payroll Growth 2.50%
Salary Increases Aggregate - 3.00% annually
Merit - CalPERS 2021 Experience Study
Contribution Policy Contributes full ADC
Discount Rate 6.10%
Mortality, Retirement, Disability, Termination
Mortality Improvement
Medical Trend 6.50% for 2025 decreasing to 3.90% in 2075 CalPERS 2021 Experience Study
MacLeod Watts Scale 2022
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experience study for the period June 30, 2022 through June 30, 2023.
The long-term expected rate of return on OPEB plan in vestments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are comb ined to produce the long- term expected rate of return by weighting the expected fu ture 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
Long-Term Expected
Rate of Return
Global Equity 49.00% 4.50%
Fixed Income 23.00% 2.20%
TIPS 5.00% 1.30%
Commodities 3.00% 1.20%
REITs 20.00% 3.90%
100.00%
Long-term assumed rate of inflation 2.500%
Long-term expected rate of return 6.100%
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
115
Note 12 – Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Change in Assumptions
The City’s discount rate used to measure the total OPEB liability decreased from 6.25 percent to 6.10 percent for the measurement period ended June 30, 2023.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.10 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.
Change in Net OPEB Liability
Total Plan Net
OPEB Fiduciary OPEB
L iability Net Position L iability
Balance at June 30, 2022 17,257,574$ 8,830,251$ 8,427,323$ Changes Recognized for the M easurement Period:
Service Cost 563,606 - 563,606 Interest on the total OPEB liability 1,079,059 - 1,079,059 Difference between expected and actual experience 4,098,199 - 4,098,199 Changes in assumptions (1,405,066) - (1,405,066) Contribution from the employer - 1,193,000 (1,193,000) Net investment income - 683,260 (683,260) Administrative expenses - (2,754) 2,754 Benefit payments (1,112,477) (1,112,477) - Net changes during July 1, 2022 to June 30, 2023 3,223,321 761,029 2,462,292 Balance at June 30, 2023 20,480,895$ 9,591,280$ 10,889,615$
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the City rec ognized OPEB expense of $734,515. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Contributions made after measurement date 1,237,000 $ - $ Differences between expected and actual experience 3,485,613 (746,849) Changes in assumptions - (1,300,993) Net difference between projected and actual
earnings of OPEB Plan investments 496,001 - 5,218,614$ (2,047,842)$
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
116
Note 12 – Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 6.69 years, which was determined as of June 30, 2023, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.
For the OPEB Plan, $1,237,000 was reported as deferred outflows of resources related to OPEB resulting from City’s contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as future OPEB expense as follows:
Year Ending
June 30 Amount
2025 (118,184)$
2026 323,116
2027 671,738
2028 376,774
2029 402,561
Thereafter 277,767
Total 1,933,772$
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, 2023:
Discount Rate -1% Current Discount Rate Discount Rate +1% (5.10%) (6.10%) (7.10%)
13,358,199$ 10,889,615 $ 8,827,887 $ Plan's Net OPE B L iability
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, 2023:
1% Decrease
(5.50% - 2.90%)
Current Healthcare
Trend Rate
(6.50% - 3.90%)
1% Increase
(7.50% to 4.90%)
8,651,662$ 10,889,615 $ 13,633,097 $ Plan's Net OPE B L iability
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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 $1,000,000 risk retention for workers’ compensation. The City has not had claims settlements exceeding insurance coverage for each of the past three fiscal years.
B. Claims Activity
The City’s claims activity is recorded in its internal service funds. Estimated liabilities are recorded when it is probable that a loss has occurred and the amount of the lo ss can be reasonably estimated. Claims that have been incurred but not reported (IBNRs) are also included in the liability estimates.
A summary of the changes in claims liabilities for the past three fiscal years follows:
Current Year
Beginning of Claims and Balance at Due in
Fiscal Year Changes in Claim Fiscal Year Due Within More than L iability E stimates Payments E nd One Year One Year
Workers' Compensation
2024 12,100,000$ 3,001,198$ (1,243,198)$ 13,858,000$ 2,743,000$ 11,115,000$ 2023 12,197,000 1,209,675 (1,306,675) 12,100,000 2,396,000 9,704,000 2022 15,936,000 (2,514,129) (1,224,871) 12,197,000 2,800,000 9,397,000 Dental
2024 -$ 775,609$ (775,609)$ -$ -$ -$ 2023 - 786,503 (786,503) - - - 2022 - 473,383 (473,383) - - - General Liability
2024 14,610,000$ (9,452,000)$ (1,118,000)$ 4,040,000$ 1,301,000$ 2,739,000$ 2023 1,872,000 12,879,689 (141,689) 14,610,000 7,074,000 7,536,000 2022 1,116,000 1,663,353 (907,353) 1,872,000 500,000 1,372,000 Total
2024 26,710,000$ (5,675,193)$ (3,136,807)$ 17,898,000$ 4,044,000$ 13,854,000$ 2023 14,069,000 14,875,867 (2,234,867) 26,710,000 9,470,000 17,240,000 2022 17,052,000 (377,393) (2,605,607) 14,069,000 3,300,000 10,769,000
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 maintenan ce 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, 2024, the City paid $27,405,432 for operations and maintenance of the wastewater treatment plant facility.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
118
Note 14 – Joint Ventures (Continued)
City of San Mateo and Estero Municipal Improvement District (Continued)
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- 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.
In February of 2024, the Authority receive the WIFIA loan proceeds and used part of the loan proceeds to defease the 2021 Wastewater Revenue Notes, Series A and B.
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 $802,082,162.
City of San Mateo, City of Belmont/Belmont Fire Prot ection 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 integrated 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 i nvestment in equity interest in its government-wide financial statements.
SMC Fire is governed under the terms of the JPA Agreement 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, 2024, the City has an investment in JPA equity of $12,740,381. Every year the City adjusts the investment based on the City’s proportion of financial activity at SMC Fi re (60%). Audited financial statements of SMC Fire are available from City of San Mateo, 330 West 20th Avenue, San Mateo, CA 94403.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
119
Note 14 – Joint Ventures (Continued)
City of San Mateo, City of Belmont/Belmont Fire Prot ection District, and City of Foster City/Estero Municipal Improvement District (Continued)
The condensed audited financial information of the JPA as of June 30, 2024 is as follows (in millions):
Total assets and deferred outflows 37,563,975$
Total liabilities and deferred inflows 16,330,007$
Total equities 21,233,968$
Expenses 52,585,800$
Program revenues 51,870,229$
General revenues 1,141,902$
Change in net position 426,331$
Note 15 – Other Required Disclosures
A. Deficit Fund Balances/Net Position
The City’s governmental activities had an unrestricted net position (deficit) of $(53,862, 081) as of June 30, 2024.
This is mainly due to reporting of net pension liability of $(269,036,27 1) as required under GASB Statement No. 68 (Note 11) and reporting of Total OPEB liability of $(9,481,590) as required under GASB Statement No. 75 (Note 12).
At June 30, 2024, the following funds had a fund balances (deficit) or unrestricted net position (deficit), which will be eliminated through the reduction in future expenditures and/or the use of new funding sources:
Fund Fund Type Deficit
Comprehensive Liability Insurance Fund Internal Service Fund 2,423,427$ Successor Agency to RDA Merged Area Fund Fiduciary Fund 37,971,375
The Internal Service Funds deficit is expected to be eliminated by future charges for services. The Successor Agency to the Redevelopment Agency Private-Purpose Trust Funds deficit which will be eliminated by future revenues.
B. Expenditures Exceeding Appropriations
For the year ended June 30, 2024, expenditures exceeded appropriations in the following funds by function:
Exce ss Expe ndi ture s
Fund Function over Appropriations
General Fund General government: City attorney 53,883$
General Fund Public safety: Police 639,660
General Fund Capital outlay 289,513
Advance Planning Fund Community development 199,528
Construction Services Fund General government 44,534
Construction Services Fund Public works 33,332
Construction Services Fund Capital outlay 25,855
General Obligation Bonds Debt Service Fund Non-departmental 1,374 2% Hotel Tax Capital Projects Fund Non-departmental 6,044
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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Note 16 – Fund Balance Classification
The City classifies fund balances, as shown on the Balance Sheet – Governmental Funds, as follows as of June 30, 2024:
General Non-major
General Capital Projects Governmental
Fund Fund Funds Total
Nonspendable
Prepaid items and inventories 304,759$ - $ - $ 304,759$ Total nonspendable 304,759 - - 304,759 Restricted
Advance planning - - 5,841,009 5,841,009 Construction services - - 26,933,917 26,933,917 Debt service 550,000 - 7,591,815 8,141,815 Housing - 907,476 10,622,472 11,529,948 Infrastructure maintenance - 9,619,719 - 9,619,719 Landfill post-closure maintenance - - 4,490,002 4,490,002 Capital projects - 4,750,829 178,905 4,929,734 Public safety - 1,132,343 531,193 1,663,536 Public streets and related facilities - - 28,759,814 28,759,814 Solid waste and landfill - 15,801,041 14,423,067 30,224,108 Total restricted 550,000 32,211,408 99,372,194 132,133,602 Assigned
Capital projects 10,028,554 26,595,669 - 36,624,223 Other purposes 1,414,672 - - 1,414,672 Total assigned 11,443,226 26,595,669 - 38,038,895 Unassigned 105,659,356 - - 105,659,356 Total fund balances 117,957,341$ 58,807,077 $ 99,372,194 $ 276,136,612 $
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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Note 17 – Net Investment in Capital Assets
Net Investment in Capital Assets at June 30, 2024, consisted of the following:
Governmental Business-Type
Activities Activities
Net investment in capital assets:
Capital assets, nondepreciable 82,476,143 $ 613,717,839 $ Capital assets, depreciable/amortizable, net 400,058,126 170,526,248 Unspent bond proceeds - Restricted cash and investments 21,216,358 51,978,422 Deferred loss/(gain) on refunding 699,287 (16,156,892) Capital-related liabilities:
Retention payable (5,029,210) -
General Obligation Refunding Bonds, Series 2013 (13,985,750) - Lease Revenue Bonds, Series 2007A (12,625,000) - Revenue Refunding Bonds, Series 2018A (3,919,355) - Advance payable (48,256,907) -
CEC Streetlight Loan (1,524,968) -
PG&E - Energy Efficiency Retrofit Loans (2,163,827) - Lease liability (442,060) (37,968)
Subscription liability (3,650,644) -
Sewer Revenue Bonds, Series 2014 - (27,193,750) Wastewater Revenue Bonds, Series 2019 - (275,156,242) Wastewater Revenue Refunding Bonds, Series 2021A - (16,216,203) Water Infrastructure Finance and Innovation Act (WIFIA) Loan - (295,479,360) Total net investment in capital assets 412,852,193 $ 205,982,094 $
Note 18 – 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 California. This action impacted the reporting entity of the City of San Mateo that previously had reported the City’s Re development Agency within the reporting entity as a blended component unit. The Bill provided that upon dissolution of a re development 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).
After enactment of the law, which occurred on June 28, 201 1, 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 proj ects 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.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
122
Note 18 – Successor Agency Private Purpose Trust For Assets of Former Redevelopment (Continued)
On October 23, 2013, the SCO issued a re port 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 Finding of Completion to the Successor Agency which allowed proceeds ($3.3 million) from the Merged Area Tax Alloca tion 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 Manageme nt Plan (LRPMP) for the disposition and use of the remaining assets of the former San Mateo Redevelopm ent Agency The Successor Agen cy 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. Th e Successor Agency received a formal response from the DOF on April 28, 2014, rejecti ng 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 the former San Mateo Redevelopmen t Agency in July 2015. The outstanding enforceable obligations currently only include am ounts 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 Redevel opment 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 approval were submitted to the Department of Finance in June 2018, with approval for the Oversight Board Resolutions coming on August 21, 2017. The Departme nt 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.
Note 19 ‒ Changes to or within the Financial Reporting Entity
The Construction Services Special Revenue Fund was previously reported as a major fund, but due to a decrease in activity in the Construction Services Fund, the fund no longer meets the quantitative threshold requiring the fund to be reported as a major fund for the fiscal year ended June 30, 2024. The changes to or within the financial reporting entity resulted in adjustments to and restatements of beginning fund balance, as follows:
June 30, 2023 Change to or with the June 30, 2023
As Prev iously Reported Financial Reporting E ntity As Restated Governmental Funds
Major Funds:
General Fund 117,879,219$ -$ 117,879,219$ General Capital Projects Fund 54,186,446 - 54,186,446 Construction Services Special Revenue Fund 32,627,760 (32,627,760) - Nonmajor Funds 58,744,866 32,627,760 91,372,626 Total Governmental Funds 263,438,291$ -$ 263,438,291$
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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Note 20 – 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 management’s opinion that the ultimate liabilities, 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 Partic ipation in the aggregate of $10,250,000 for the benefit of San Mateo Community Hospital (Hospita l), a California nonprofit public benefit corporation. The Hospital is not included in the City’s reporting entity. The City is obligat ed to make the purchase paym ents 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 insured by the Office of Statewide Health Planning and Development of the State of California. As of June 30, 2024, the City has not recorded revenues from the Hospital.
C. Federal and State Grants
The City participates in various federal and state grant programs, the principal of which are subject to program compliance audits pursuant to the Single Audit act as amended, and various other state grant compliance requirements. Accordingly, 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, although 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, 2024.
Encumbrances related to ca pital projects are funded through the current year appropriated budget, which carries over to the following year.
The following is a list of the commitments at June 30, 2024:
Remaining
Commitment
Clean Water Program 20,431,049 $
Sanitary Sewer Rehabilitation and Improvement Project 65,856,143 Streetscape Improvements 7,899,698
Miscellaneous Projects 6,511,373
Total 100,698,263$
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REQUIRED SUPPLEMENTARY INFORMATION
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City of San Mateo
Required Supplementary Information (Unaudited)
Budgetary Information
For the Year Ended June 30, 2024
127
Budgetary Control and Budgetary Accounting
Budgets are legally adopted and formal budgetary integration is employed as a management control device during the year for all governmental fund types. The budget is pr epared in accordance with accounting principles generally accepted in the United States of America. From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the various City departments.
The City has two-year business plan development procedur es. The two-year business plan process requires that each department submit two one-year expend iture plans and revenue estimates to be provided to the City Council for approval. Only the first year of the two-year business 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 busin ess 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 ec onomic 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 plans 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.
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City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – General Fund
For the Year Ended June 30, 2024
128
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES :
Property taxes 78,022,243 $ 78,022,243 $ 78,606,527 $ 584,284 $ Sales taxes 31,216,400 31,216,400 27,772,986 (3,443,414) Other taxes 23,546,274 23,546,274 25,883,776 2,337,502 Licenses, building and other permits 70,000 70,000 97,101 27,101 Fines, forfeitures and penalties 1,481,000 1,481,000 3,024,160 1,543,160 Intergovernmental 2,806,774 2,875,359 3,066,664 191,305 Charges for Services 12,848,736 12,848,736 15,607,445 2,758,709 Investment income 1,800,000 1,800,000 8,470,713 6,670,713 Parking Meter and Lease Revenue 2,040,000 2,040,000 3,199,677 1,159,677 Other revenues 3,046,563 3,157,403 4,284,746 1,127,343 Total revenues 156,877,990 157,057,415 170,013,795 12,956,380 EXPENDITURES :
Current:
General government:
City Council 356,898 356,898 319,813 37,085 City Manager 2,617,253 2,698,053 2,305,807 392,246 City Clerk 862,087 862,087 785,263 76,824 City Attorney 1,212,087 1,212,087 1,265,970 (53,883) Finance 4,176,442 4,260,929 4,220,237 40,692 Information technology 4,679,239 4,050,582 3,979,491 71,091 Human Resources 2,284,816 2,284,816 2,169,288 115,528 Community development 1,946,275
1,881,025 1,729,511 151,514
Public safety:
Police 57,981,162 58,416,581 59,056,241 (639,660) Fire 27,509,727 27,509,727 27,509,727 - Public works 12,156,247 12,740,919 10,831,430 1,909,489 Parks and recreation 21,666,029 21,666,029 21,136,909 529,120 Library 8,925,860 8,925,860 8,619,895 305,965 Non-departmental 9,840,263 9,840,263 9,678,356 161,907 Capital outlay 20,865 1,097,096 1,386,609 (289,513) Debt service:
Principal 1,116,583 2,353,227 2,353,226 1 Interest and fiscal charges 162,988 249,630 249,630 - Total expenditures 157,514,821 160,405,809 157,597,403 2,808,406
REVENUES O VER
(UNDER) EXPENDITURES (636,831) (3,348,394) 12,416,392 15,764,786 Budgeted Amounts
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City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – General Fund (Continued) For the Year Ended June 30, 2024
129
Final Budget
Actual Favorable/
Original Fina l Amounts (Unfavorable)
OTHER FINANCING SOURCES (USES):
Proceeds from sale of property - - 21,354 21,354 Inception of subscription liability - 1,076,231 1,076,231 - Transfers in 7,247,433 7,247,433 7,247,433 - Transfers out (19,201,887) (22,301,887) (20,683,288) 1,618,599 Total other financing sources (uses) (11,954,454) (13,978,223) (12,338,270) 1,639,953 NET CHANGES IN FUND BALANCE (12,591,285)$ (17,326,617)$ 78,122 17,404,739$ FUND BALANCE:
Beginning of year 117,879,219
End of year 117,957,341$
Budgeted Amounts
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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, 2024
130
Total Pension Liability 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Service cost 5,920,696$ 5,860,301$ 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 21,858,537 20,961,702 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 3,251,428 (1,978,041) (812,628) 2,219,628 4,029,100 1,103,888 (3,106,399) (331,929) (627,100) - Chang es in assumptions - 8,484,848 - - - (1,424,920) 13,781,463 - (3,817,336) - Changes in benefit terms 425,881 - - - - - - - - - Benefit payments, including refunds of
employee contributions (18,230,555) (16,833,252) (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 liability 13,225,987 16,495,558 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 liability - beginning 319,268,003 302,772,445 293,509,581 281,115,975 266,465,499 256,630,068 236,508,996 227,727,145 222,910,412 213,602,863 Total pension liability - ending (a) 332,493,990$ 319,268,003 $ 302,772,445 $ 293,509,581 $ 281,115,975 $ 266,465,499 $ 256,630,068 $ 236, 508,996$ 227,727, 145$ 222,91 0,412$ Plan fiduciary net position
Contributions - employer 10,683,495 9,953,731 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 2,571,915 2,557,263 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) 14,067,212 (18,866,744) 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 (18,230,555) (16,833,252) (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 (167,490) (156,429) (208,546) (286,451) (138,259) (832,007) (251,079) (106,172) (198,614) - Net change in plan fiduciary net position 8,924,577 (23,345,431) 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 227,767,747 251,113,178 208,767,343 203,191,997 194,375,865 184,075,583 170,058,200 174,210,805 175,072,327 153,267,249 Plan fiduciary net position - ending (b) 236,692,324$ 227,767,747 $ 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) 95,801,666$ 91,500,256$ 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 71.19% 71.34% 82.94% 71.13% 72.28% 72.95% 71.73% 71.90% 76.50% 78.54% Covered payroll 38,292,673$ 36,700,692$ 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 250.18% 249.31% 142.88% 238.81% 222.21% 207.82% 229.92% 235.20% 199.03% 189.99% Miscellaneous Plan
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Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
131
Total Pension Liability 2022-23 2021-22 2020-21 2 019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Service cost 5,234,236$ 4,815,965$ 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 32,047,044 31,147,674 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 2,427,801 2,215,829 2,818,839 3,435,208 4,999,458 4,313,272 (652,769) (1,229,918) (4,513,903) - Changes in assumptions - 15,714,311 - - - (1,764,356) 20,868,220 - (5,706,829) - Changes in benefit terms 206,341 - - - - - - - - - Benefit payments, including refunds of
employee contributions (26,386,401) (25,158,731) (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 liability 13,529,021 28,735,048 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 liability - beginning 472,391,862 443,656,814 429,955,594 415,840,034 399,785,233 383,079,328 348,666,886 336,907,363 334,275,309 321,632,108 Total pension liability - ending (a) 485,920,883$ 472,391,862 $ 443,656,814 $ 429,955,594 $ 415,840,034 $ 399,785,233 $ 383,079,328 $ 34 8,666,886$ 336 ,907,363$ 334,275,309 $ Plan fiduciary net position
Contributions - employer 16,292,527 14,717,993 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 1,761,725 1,709,770 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) 17,641,331 (24,080,446) 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 (26,386,401) (25,158,731) (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 (209,675) (198,185) (266,493) (371,100) (179,352) (1,073,204) (320,823) (135,133) (249,571) - Net change in plan fiduciary net position 9,099,507 (33,009,599) 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 285,135,370 318,144,969 266,775,612 263,237,639 252,146,010 237,438,179 217,296,107 221,730,561 222,528,185 195,567,353 Plan fiduciary net position - ending (b) 294,234,877$ 285,135,370 $ 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) 191,686,006$ 187,256,492 $ 1 25,511,845$ 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 60.55% 60.36% 71.71% 62.05% 63.30% 63.07% 61.98% 62.32% 65.81% 66.57% Covered payroll 17,595,173$ 17,257,920$ 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 1089.42% 1085.05% 763.34% 1015.62% 687.05% 519.07% 537.65% 545.28% 502.96% 509.41% Safety Plan
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City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Pension
For the Year Ended June 30, 2024
132
Fiscal Year: 2023-24 2022-23 2021-22 2020-21 2019-20
Contractually determined contribution (actuarially determined) 10,792,135$ 10,683,495 $ 9,953,731 $ 8,968,085$ 8,308,301$ Contributions in relation to the actuarially determined contributions (10,792,135) (10,683,495) (9,953,731) (8,968,085) (8,308,301) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll 40,268,344$ 38,292,673 $ 36,700,692 $ 36,154,902 $ 35,484,738 $ Contributions as a percentage of covered payroll 26.80% 27.90% 27.12% 24.80% 23.41% Fiscal Year: 2018-19 2017-18 2016-17 2015-16 2014-15
Contractually determined contribution (actuarially determined) 7,343,001$ 6,287,697$ 5,873,612$ 5,331,714$ 4,415,313$ Contributions in relation to the actuarially determined contributions (7,343,001) (6,287,697) (5,873,612) (5,331,714) (4,415,313) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll 35,068,361$ 34,688,256 $ 31,556,856 $ 28,252,538 $ 26,888,005 $ Contributions as a percentage of covered payroll 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, 2024:
Actuarial cost method Entry Age Normal
Amortization method/period For details, see June 30, 2020 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details, see June 30, 2020 Funding Valuation Report.
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll growth 2.75%
Investment rate of return 7.00% net of pension plan investment and administrative expenses.
Retirement age
Mortality
Miscellaneous Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2024 were derived from the June 30, 2020 funding valuation report.
The probabilities of mortality are based on the the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality rates include 15 years of projected mortality improvement using 90% of Scale-MP 2016 published by the Society of Actuaries.
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 and 2015.
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City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions – Pension (Continued)
For the Year Ended June 30, 2024
133
Fiscal Year: 2023-24 2022-23 2021-22 2020-21 2019-20
Contractually determined contribution (actuarially determined) 17,313,205$ 16,292,527 $ 14,717,993 $ 13,566,455 $ 12,284,260 $ Contributions in relation to the actuarially determined contributions (17,313,205) (16,292,527) (14,717,993) (13,566,455) (12,284,260) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll 19,524,472$ 17,595,173 $ 17,257,920 $ 16,442,390 $ 16,067,107 $ Contributions as a percentage of covered payroll 88.67% 92.60% 85.28% 82.51% 76.46% Fiscal Year: 2018-19 2017-18 2016-17 2015-16 2014-15
Contractually determined contribution (actuarially determined) 12,496,190$ 12,011,260 $ 11,663,623 $ 10,576,566 $ 9,444,848 $ Contributions in relation to the actuarially determined contributions (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 22,211,287$ 28,442,831 $ 27,088,471 $ 24,092,535 $ 22,899,741 $ Contributions as a percentage of covered payroll 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, 2024:
Actuarial cost method Entry Age Normal
Amortization method/period For details, see June 30, 2020 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details, see June 30, 2020 Funding Valuation Report.
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll growth 2.75%
Investment rate of return 7.00% net of pension plan investment and administrative expenses.
Retirement age
Mortality
Safety Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2024 were derived from the June 30, 2020 funding valuation report.
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 the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality rates include 15 years of projected mortality improvement using 90% of Scale-MP 2016 published by the Society of Actuaries.
242 of 356
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, 2024
134
2024 2023 2022 2021 2020 2019 2018
For the Measurement Period: 2022-2023 2021-2022 2020-2021 2019-2020 2018-2019 2017-2018 2016-20171 Total OPE B L iability:
Service Cost 563,606$ 548,522$ 497,327$ 482,842$ 692,000$ 672,000$ 653,000$ Interest on the total OPEB liability 1,079,059 1,048,022 1,144,590 1,113,841 1,338,000 1,286,000 1,240,000 Chang es in benefit terms - - - - - - - Difference between expected
and actual experience 4,098,199 - (670,829) - (3,453,000) - - Changes in assumptions (1,405,066) - (86,901) - (509,000) - - Benefit payments (1,112,477) (1,117,596) (1,130,244) (1,181,000) (1,174,000) (1,269,000) (1,178,000) Net changes in Total OPE B L iability 3,223,321 478,948 (246,057) 415,683 (3,106,000) 689,000 715,000 Beginning of Year 17,257,574 16,778,626 17,024,683 16,609,000 19,715,000 19,026,000 18,311,000 End of Year 20,480,895$ 17,257,574$ 16,778,626$ 17,024,683$ 16,609,000$ 19,715,000$ 19,026,000$ Plan Fiduciary Net Position:
Employer contribution 1,193,000$ 2,056,602$ 1,817,000$ 1,825,000$ 1,950,000$ 1,913,000$ 1,852,000$ Employee contributions - - - - - - - Net investment income 683,260 (1,364,786) 2,140,859 239,112 495,000 372,000 334,000 Admi
nistrative expenses (2,754) (9,587) (9,723) (11,386) (7,000) (7,000) (2,000) Benefit payments (1,112,477) (1,117,596) (1,130,244) (1,181,000) (1,174,000) (1,269,000) (1,178,000) Net changes in Fiduciary Net Position 761,029 (435,367) 2,817,892 871,726 1,264,000 1,009,000 1,006,000 Beginning of Year 8,830,251 9,265,618 6,447,726 5,576,000 4,312,000 3,303,000 2,297,000 End of Year 9,591,280$ 8,830,251$ 9,265,618$ 6,447,726$ 5,576,000$ 4,312,000$ 3,303,000$ Net OPE B L iability 10,889,615$ 8,427,323$ 7,513,008$ 10,576,957$ 11,033,000$ 15,403,000$ 15,723,000$ Fiduciary Net Position as a
percentage of Total OPE B L iability 46.83% 51.17% 55.22% 37.87% 33.57% 21.87% 17.36% Covered Payroll 60,964,235$ 59,443,000$ 57,176,000$ 55,405,000$ 62,798,000$ 66,133,000$ 57,300,000$ Net OPE B L iability as a % of Payroll 17.86% 14.18% 13.14% 19.09% 17.57% 23.29% 27.44% 1 Historical information is presented only from the implementation year.
243 of 356
City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - OPEB
For the Year Ended June 30, 2024
135
2023-24 2022-23 2021-22 2020-21 2019-20
Actuarially determined contribution 1,237,000$ 1,193,000$ 1,319,000$ 1,281,000$ 1,817,000$ Contributions in relation to the
actuarially determined contributions (1,237,000) (1,193,000) (2,056,602) (1,817,000) (1,825,000) Contribution deficie ncy (excess) -$ -$ (737,602)$ (536,000)$ (8,000)$ Covered-employee payroll 64,907,000$ 60,964,235$ 59,443,000$ 57,176,000$ 55,405,000$ Contributions as a percentage of
covered-employee payroll 1.91% 1.94% 3.46% 3.18% 3.29%
2018-19 2017-18
1 Actuarially determined contribution 1,764,000$ 1,913,000$ Contributions in relation to the
actuarially determined contributions (1,950,000) (1,913,000) Contribution deficie ncy (excess) (186,000)$ -$ Covered-employee payroll 62,798,000$ 66,133,000$ Contributions as a percentage of
covered-employee payroll 3.11% 2.89%
Notes to Schedule
Actuarial valuation dat
e 6/30/2023
Actuarial cost method Entry-Age Normal Cost Method, Level % of pay Amortization Period 16-year fixed period for 2022-2023
Asset valuation method Actuarial value of assets. Investment gains and losses spread over 5-year rolling period.
Inflation 2.50%
Investment rate of return 6.25%
Healthcare cost trend rate 6.50% for 2025, decreasing to an ultimate rate of 3.90% in 2075 Projected salary growth and increase Varies by Entry Age and Service M ortality CalPERS 2000-2019 experience study
M ortality Improvement M ortality projected fully generational with Scale M P-2021 1 Historical information is presented only from the implementation year.
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2024 were as follows:
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245 of 356
SUPPLEMENTARY INFORMATION
137
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138
247 of 356
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.
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 an d Recreation Tax, as well as the Parks an d 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.
Construction Services Special Revenue Fund This fund accounts for revenue and expenditures of activities relating to building permits.
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
248 of 356
Community
Police Development
Grants Block Grant HOME City Housing
Fund Fund Fund Fund
ASSETS
Cash and investments 244,334$ 77,122$ 292,098$ 1,143,075$ Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net 155,040 - - - Taxes receivable - - - - Grants receivable 207,197 55,965 - - Loans and notes receivable, net - 367,773 216,305 54,684 Total assets 606,571$ 500,860$ 508,403$ 1,197,759$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND
FUND BALANCES
Liabilities:
Accounts payable 49,935 29,933 - - Deposits payable - - - - Unearned revenues 25,443 - 300 - Total liabilities 75,378 29,933 300 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 79,851 24,787 - Total deferred inflows of resources - 79,851 24,787 - Fund Balances:
Restricted 531,193 391,076 483,316 1,197,759 Total fund balances 531,193 391,076 483,316 1,197,759 Total liabilities, deferred inflows of
resources, and fund balances 606,571$ 500,860$ 508,403$ 1,197,759$ (Continued)
Special Revenue
Non-Major Governmental Funds
City of San Mateo
Combining Balance Sheet
June 30, 2024
140
249 of 356
Permanent
Low & Moderate Local Housing Road Maintenance
Income Housing Allocation Gas Tax and Rehabilitation
Fund Fund Fund Fund
ASSETS
Cash and investments 2,447,758$ 533,287$ 1,518,169$ 7,016,965$ Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - - - - Taxes receivable - - 250,276 475,608 Grants receivable - - - - Loans and notes receivable, net 2,881,365 - - - Total assets 5,329,123$ 533,287$ 1,768,445$ 7,492,573$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND
FUND BALANCES
Liabilities:
Accounts payable 522 21,792 - - Deposits payable 167 - - - Unearned revenues - 501,471 - - Total liabilities 689 523,263 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 193,230 - - - Total deferred inflows of resources 193,230 - - - Fund Balances:
Restricted 5,135,204 10,024 1,768,445 7,492,573 Total fund balances 5,135,204 10,024 1,768,445 7,492,573 Total liabilities, deferred inflows of
resources, and fund balances 5,329,123$ 533,287$ 1,768,445$ 7,492,573$ (Continued)
Special Revenue
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2024
141
250 of 356
Parks and Traffic
Advance Planning Solid Waste Recreation Impact Fee
Fund Fund Fund Fund
ASSETS
Cash and investments 5,621,105$ 15,438,919$ 19,442,376$ 56,420$ Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - 353,401 - - Taxes receivable - - - - Grants receivable 248,266 - - - Loans and notes receivable, net - - - - Total assets 5,869,371$ 15,792,320$ 19,442,376$ 56,420$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND
FUND BALANCES
Liabilities:
Accounts payable 28,362 1,034,468 - - Deposits payable - - - - Unearned revenues - 334,785 - - Total liabilities 28,362 1,369,253 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances:
Restricted 5,841,009 14,423,067 19,442,376 56,420 Total fund balances 5,841,009 14,423,067 19,442,376 56,420 Total liabilities, deferred inflows of
resources, and fund balances 5,869,371$ 15,792,320$ 19,442,376$ 56,420$ (Continued)
Special Revenue
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2024
142
251 of 356
Commercial Construction General
Linkage Fee Services Landfill Bonds Obligation Bonds
Fund Fund Fund Fund
ASSETS
Cash and investments 3,405,093$ 28,917,294$ 4,496,451$ 7,593,940$ Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - 346,468 - - Taxes receivable - - - - Grants receivable - 38,100 - - Loans and notes receivable, net - - - - Total assets 3,405,093$ 29,301,862$ 4,496,451$ 7,593,940$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND
FUND BALANCES
Liabilities:
Accounts payable - 341,662 6,449 2,125 Deposits payable - 260,708 - - Unearned revenues - 1,765,575 - - Total liabilities - 2,367,945 6,449 2,125
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances:
Restricted 3,405,093 26,933,917 4,490,002 7,591,815 Total fund balances 3,405,093 26,933,917 4,490,002 7,591,815 Total liabilities, deferred inflows of
resources, and fund balances 3,405,093$ 29,301,862$ 4,496,451$ 7,593,940$ (Continued)
City of San Mateo
Debt Service
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2024
Special Revenue
143
252 of 356
Capital Projects
Total Other
2% Hotel Tax Governmental
Fund Funds
ASSETS
Cash and investments 80,795$ 98,325,201$ Restricted cash and investments held by fiscal agents 35,883 35,883 Accounts receivable, net - 854,909 Taxes receivable 78,824 804,708
Grants receivable - 549,528
Loans and notes receivable, net - 3,520,127 Total assets 195,502$ 104,090,356$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND
FUND BALANCES
Liabilities:
Accounts payable 16,597 1,531,845
Deposits payable - 260,875
Unearned revenues - 2,627,574 Total liabilities 16,597 4,420,294
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 297,868 Total deferred inflows of resources - 297,868 Fund Balances:
Restricted 178,905 99,372,194
Total fund balances 178,905 99,372,194
Total liabilities, deferred inflows of
resources, and fund balances 195,502$ 104,090,356$ (Concluded)
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2024
144
253 of 356
Community
Police Develo pment
Grants Block Gran t HOME Cit y Housing
Fund Fund Fund Fund
REVENUES:
Property taxes -$ -$ -$ -$ Other taxes - - - - Licenses, building and other permits - - - - Fines, forfeitures and penalties 218,732 - - - Intergovernmental 959,315 181,260 - - Charges for services - - - - Investment income 15,158 - - - Assessments and garbage collection - - - - Capital contributions - - - - Other revenues - 22,273 81,646 231,660 Total revenues 1,193,205 203,533 81,646 231,660 EXPENDITURES:
Current:
General government:
City Manager - - - - City Attorney - - - - Information technology - - - - Community development - 217,619 1,095 - Public safety:
Police 960,900 - - - Public works - - - - Non-departmental - - - - Capital outlay 92,713 - - - Debt service:
Principal - - - - Interest and fiscal charges - - - - Total expenditures 1,053,613 217,619 1,095 -
REVENUES OVER
(UNDER) EXPENDITURES 139,592 (14,086) 80,551 231,660 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - NET CHANGES IN FUND BALANCES 139,592 (14,086) 80,551 231,660 FUND BALANCES:
Be
ginning of year, as previously reported 391,601 405,162 402,765 966,099 Change with financial reporting entity
(major to non major fund) - - - - Beginning of year, as restated (Note 19) 391,601 405,162 402,765 966,099 End of year 531,193$ 391,076 $ 483,316 $ 1,197,759 $ (Continued)
Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances City of San Mateo
For the Year Ended June 30, 2024
Non-Major Governmental Funds
145
254 of 356
Permanent
Low & Moderate Local Housin g Road Maintenance
Income Housing Allocation Gas Ta x and Rehabilitation
Fund Fund Fund Fund
REVENUES:
Property taxes -$ -$ -$ -$ Other taxes - - - - Licenses, building and other permits - - - - Fines, forfeitures and penalties - - - - Intergovernmental - 304,820 2,892,843 2,729,016 Charges for services - - - - Investment income 162,850 7,309 66,100 249,987 Assessments and garbage collection - - - - Capital contributions - - - - Other revenues 301,593 - - - Total revenues 464,443 312,129 2,958,943 2,979,003 EXPENDITURES:
Current:
General government:
City Manager - - - - City Attorney - - - - Information technology - - - - Community development 40,749 304,820 - - Public safety:
Police - - - - Public works - - - - Non-departmental - - - - Capital outlay - - - - Debt service:
Principal - - - - Interest and fiscal charges - - - - Total expenditures 40,749 304,820 - -
REVENUES OVER
(UNDER) EXPENDITURES 423,694 7,309 2,958,943 2,979,003 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - (2,458,258) (97,749) Total other financing sources (uses) - - (2,458,258) (97,749) NET CHANGES IN FUND BALANCES 423,694 7,309 500,685 2,881,254 FUND BALANCES:
Be
ginning of year, as previously reported 4,711,510 2,715 1,267,760 4,611,319 Change with financial reporting entity
(major to non major fund) - - - - Beginning of year, as restated (Note 19) 4,711,510 2,715 1,267,760 4,611,319 End of year 5,135,204$ 10,024 $ 1,768,445$ 7,492,573 $ (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, 2024
Special Revenue
146
255 of 356
Parks and Traffic
Advance Planning Solid Waste Recreation Im pact Fee
Fund Fund Fund Fund
REVENUES:
Property taxes -$ -$ -$ -$ Other taxes - - - - Licenses, building and other permits - - - - Fines, forfeitures and penalties - - - - Intergovernmental 368,936 105,841 - - Charges for services 1,744,137 1,080,976 - - Investment income 255,174 706,390 729,113 14,508 Assessments and garbage collection - 1,750,309 159,539 - Capital contributions - 600,000 7,317,600 773,139 Other revenues - 50,312 - - Total revenues 2,368,247 4,293,828 8,206,252 787,647 EXPENDITURES:
Current:
General government:
City Manager 9,850 - - - City Attorney - - - - Information technology - - - - Community development 1,622,193 - - - Public safety:
Police - - - - Public works - 3,592,804 - - Non-departmental - - 16,881 - Capital outlay - - - - Debt service:
Principal - - - - Interest and fiscal charges - - - - Total expenditures 1,632,043 3,592,804 16,881 -
REVENUES OVER
(UNDER) EXPENDITURES 736,204 701,024 8,189,371 787,647 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - (437,480) (1,032,914) (1,046,931) Total other financing sources (uses) - (437,480) (1,032,914) (1,046,931) NET CHANGES IN FUND BALANCES 736,204 263,544 7,156,457 (259,284) FUND BALANCES:
Be
ginning of year, as previously reported 5,104,805 14,159,523 12,285,919 315,704 Change with financial reporting entity
(major to non major fund) - - - - Beginning of year, as restated (Note 19) 5,104,805 14,159,523 12,285,919 315,704 End of year 5,841,009$ 14,423,067 $ 19,442,376 $ 56,420 $ (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, 2024
Special Revenue
147
256 of 356
Commercial Construction General
Linkage Fee Services Landfill Bonds Obli gation Bonds
Fund Fund Fund Fund
REVENUES:
Property taxes -$ -$ -$ 2,724,717$ Other taxes - - - - Licenses, building and other permits - 7,248,749 - - Fines, forfeitures and penalties - - - - Intergovernmental - 38,100 - - Charges for services - 2,746,219 - - Investment income 164,327 1,608,951 210,231 314,808 Assessments and garbage collection - - 450,000 - Capital contributions - - - - Other revenues - 55 - - Total revenues 164,327 11,642,074 660,231 3,039,525 EXPENDITURES:
Current:
General government:
City Manager - 115,164 - - City Attorney - 229,587 - - Information technology - 123,895 - - Community development - 9,946,353 - - Public safety:
Police - - - - Public works - 1,094,733 88,049 - Non-departmental 5,085 - - 122,851 Capital outlay - 25,855 - - Debt service:
Principal - - - 2,485,000 Interest and fiscal charges - - - 2,193,200 Total expenditures 5,085 11,535,587 88,049 4,801,051
REVENUES OVER
(UNDER) EXPENDITURES 159,242 106,487 572,182 (1,761,526) OTHER FINANCING SOURCES (USES):
Transfers in - - - 2,691,887 Transfers out - (5,800,330) (35,947) - Total other financing sources (uses) - (5,800,330) (35,947) 2,691,887 NET CHANGES IN FUND BALANCES 159,242 (5,693,843) 536,235 930,361 FUND BALANCES:
Be
ginning of year, as previously reported 3,245,851 - 3,953,767 6,661,454 Change with financial reporting entity
(major to non major fund) - 32,627,760 - - Beginning of year, as restated (Note 19) 3,245,851 32,627,760 3,953,767 6,661,454 End of year 3,405,093$ 26,933,917 $ 4,490,002 $ 7,591,815 $ (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, 2024
Debt ServiceSpecial Revenue
148
257 of 356
Capital Projects
Total Other
2% Hotel Tax Governmenta l
Fund Funds
REVENUES:
Property taxes -$ 2,724,717$
Other taxes 887,679 887,679
Licenses, building and other permits - 7,248,749 Fines, forfeitures and penalties - 218,732 Intergovernmental - 7,580,131 Charges for services - 5,571,332 Investment income 13,554 4,518,460
Assessments and garbage collection - 2,359,848 Capital contributions - 8,690,739 Other revenues - 687,539
Total revenues 901,233 40,487,926
EXPENDITURES:
Current:
General government:
City Manager - 125,014
City Attorney - 229,587
Information technology - 123,895 Community development - 12,132,829 Public safety:
Police - 960,900
Public works - 4,775,586
Non-departmental 144,933 289,750
Capital outlay - 118,568
Debt service:
Principal 510,000 2,995,000
Interest and fiscal charges 326,307 2,519,507 Total expenditures 981,240 24,270,636
REVENUES OVER
(UNDER) EXPENDITURES (80,007) 16,217,290 OTHER FINANCING SOURCES (USES):
Transfers in - 2,691,887
Transfers out - (10,909,609) Total other financing sources (uses) - (8,217,722) NET CHANGES IN FUND BALANCES (80,007) 7,999,568 FUND BALANCES:
Be
ginning of year, as previously reported 258,912 58,744,866 Change with financial reporting entity
(major to non major fund) - 32,627,760 Beginning of year, as restated (Note 19) 258,912 91,372,626 End of year 178,905$ 99,372,194$
(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, 2024
149
258 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Fines, forfeitures and penalties -$ -$ 218,732$ 218,732$ Intergovernmental 563,539 2,330,054 959,315 (1,370,739) Investment income 6,000 6,000 15,158 9,158 Total revenues 569,539 2,336,054 1,193,205 (1,142,849) EXPENDITURES:
Current:
Public safety:
Police 863,856 2,485,658 960,900 1,524,758 Capital outlay - 144,713 92,713 52,000 Total expenditures 863,856 2,630,371 1,053,613 1,576,758 NET CHANGES IN FUND BALANCE (294,317)$ (294,317)$ 139,592 433,909$ FUND BALANCE:
Beginning of year 391,601
End of year 531,193$
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, 2024
Budgeted Amounts
150
259 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental 696,000 $ 696,000 $ 181,260 $ (514,740) $ Other revenues 8,000 8,000 22,273 14,273 Total revenues 704,000 704,000 203,533 (500,467) EXPENDITURES:
Current:
Community development 252,899 252,899 217,619 35,280 Total expenditures 252,899 252,899 217,619 35,280
REVENUES OVER
(UNDER) EXPENDITURES 451,101 451,101 (14,086) (535,747) OTHER FINANCING SOURCES (USES):
Transfers out (610,000) (610,000) - 610,000 Total other financing sources (uses) (610,000) (610,000) - 610,000 NET CHANGES IN FUND BALANCE (158,899)$ (158,899) $ (14,086) 74,253 $ FUND BALANCE:
Beginning of year 405,162
End of year 391,076$
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, 2024
Budgeted Amounts
151
260 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Other revenues 15,000$ 15,000$ 81,646$ 66,646$ Total revenues 15,000 15,000 81,646 66,646 EXPENDITURES:
Current:
Community development 10,000 10,000 1,095 8,905 Total expenditures 10,000 10,000 1,095 8,905 NET CHANGES IN FUND BALANCE 5,000$ 5,000$ 80,551 75,551$ FUND BALANCE:
Beginning of year 402,765
End of year 483,316$
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, 2024
Budgeted Amounts
152
261 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income 18,000$ 18,000$ -$ (18,000)$ Other revenues 16,000 16,000 231,660 215,660 Total revenues 34,000 34,000 231,660 197,660 EXPENDITURES:
Current:
Community development 198,500 198,500 - 198,500 Total expenditures 198,500 198,500 - 198,500
REVENUES OVER
(UNDER) EXPENDITURES (164,500) (164,500) 231,660 (840) NET CHANGES IN FUND BALANCE (164,500)$ (164,500)$ 231,660 396,160$ FUND BALANCE:
Beginning of year 966,099
End of year 1,197,759$
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, 2024
Budgeted Amounts
153
262 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income 73,000$ 73,000$ 162,850$ 89,850$ Other revenues 214,000 214,000 301,593 87,593 Total revenues 287,000 287,000 464,443 177,443 EXPENDITURES:
Current:
Community development 146,399 146,399 40,749 105,650 Total expenditures 146,399 146,399 40,749 105,650 NET CHANGES IN FUND BALANCE 140,601$ 140,601$ 423,694 71,793$ FUND BALANCE:
Beginning of year 4,711,510
End of year 5,135,204$
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, 2024
Budgeted Amounts
154
263 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental 500,000$ 1,084,800$ 304,820$ (779,980)$ Investment income - - 7,309 7,309 Total revenues 500,000 1,084,800 312,129 (772,671) EXPENDITURES:
Current:
Community development 500,000 1,267,460 304,820 962,640 Total expenditures 500,000 1,267,460 304,820 962,640 NET CHANGES IN FUND BALANCE -$ (182,660)$ 7,309 189,969$ FUND BALANCE:
Beginning of year 2,715
End of year 10,024$
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, 2024
Budgeted Amounts
155
264 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental 3,018,448$ 3,018,448$ 2,892,843$ (125,605)$ Investment income 12,000 12,000 66,100 54,100 Total revenues 3,030,448 3,030,448 2,958,943 (71,505) OTHER FINANCING (USES):
Transfers out (2,267,500) (2,267,500) (2,458,258) (190,758) Total other financing (uses) (2,267,500) (2,267,500) (2,458,258) (190,758) NET CHANGES IN FUND BALANCE 762,948$ 762,948 $ 500,685 (262,263) $ FUND BALANCE:
Beginning of year 1,267,760
End of year 1,768,445$
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, 2024
Budgeted Amounts
156
265 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental 2,614,190$ 2,614,190$ 2,729,016$ 114,826$ Investment income 17,000 17,000 249,987 232,987 Total revenues 2,631,190 2,631,190 2,979,003 347,813 OTHER FINANCING SOURCES (USES):
Transfers out (2,000,000) (2,000,000) (97,749) 1,902,251 Total other financing sources (uses) (2,000,000) (2,000,000) (97,749) 1,902,251 NET CHANGES IN FUND BALANCE 631,190$ 631,190$ 2,881,254 2,250,064$ FUND BALANCE:
Beginning of year 4,611,319
End of year 7,492,573$
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, 2024
Budgeted Amounts
157
266 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental 50,000$ 50,000$ 368,936$ 318,936$ Charges for services 1,700,000 1,700,000 1,744,137 44,137 Investment income 92,000 92,000 255,174 163,174 Total revenues 1,842,000 1,842,000 2,368,247 526,247 EXPENDITURES:
Current:
General government:
City Manager - 166,300 9,850 156,450 Community development 1,422,665 1,422,665 1,622,193 (199,528) Total expenditures 1,422,665 1,588,965 1,632,043 (43,078) NET CHANGES IN FUND BALANCE 419,335$ 253,035$ 736,204 569,325$ FUND BALANCE:
Beginning of year 5,104,805
End of year 5,841,009$
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, 2024
Budgeted Amounts
158
267 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Fines, forfeitures and penalties 400,000$ 400,000$ -$ (400,000)$ Intergovernmental 214,000 214,000 105,841 (108,159) Charges for services 750,000 750,000 1,080,976 330,976 Investment income 160,000 160,000 706,390 546,390 Assessments and garbage collection 1,076,160 1,076,160 1,750,309 674,149 Capital contributions 750,000 750,000 600,000 (150,000) Other revenues 82,000 82,000 50,312 (31,688) Total revenues 3,432,160 3,432,160 4,293,828 861,668 EXPENDITURES:
Current:
Public works 2,848,189 3,848,189 3,592,804 255,385 Capital outlay 410,000 410,000 - 410,000 Total expenditures 3,258,189 4,258,189 3,592,804 665,385
REVENUES OVER
(UNDER) EXPENDITURES 173,971 (826,029) 701,024 196,283 OTHER FINANCING SOURCES (USES):
Transfers out (750,000) (750,000) (437,480) 312,520 Total other financing sources (uses) (750,000) (750,000) (437,480) 312,520 NET CHANGES IN FUND BALANCE (576,029)$ (1,576,029)$ 263,544 508,803$ FUND BALANCE:
Beginning of year 14,159,523
End of year 14,423,067$
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, 2024
Budgeted Amounts
159
268 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income 187,000$ 187,000$ 729,113$ 542,113$ Assessments and garbage collection - - 159,539 159,539 Capital contributions 10,780,136 10,780,136 7,317,600 (3,462,536) Total revenues 10,967,136 10,967,136 8,206,252 (2,760,884) EXPENDITURES:
Current:
Non-departmental 16,882 16,882 16,881 1 Total expenditures 16,882 16,882 16,881 1
REVENUES OVER
(UNDER) EXPENDITURES 10,950,254 10,950,254 8,189,371 (2,760,885) OTHER FINANCING SOURCES (USES):
Transfers out (3,050,000) (3,050,000) (1,032,914) 2,017,086 Total other financing sources (uses) (3,050,000) (3,050,000) (1,032,914) 2,017,086 NET CHANGES IN FUND BALANCE 7,900,254$ 7,900,254$ 7,156,457 (743,799)$ FUND BALANCE:
Beginning of year 12,285,919
End of year 19,442,376$
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, 2024
Budgeted Amounts
160
269 of 356
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income 32,000$ 32,000$ 14,508$ (17,492)$ Capital contributions 2,505,482 2,505,482 773,139 (1,732,343) Total revenues 2,537,482 2,537,482 787,647 (1,749,835) OTHER FINANCING (USES):