San Mateo City Council
January 26, 2026

4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 6, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 6, 2026
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MANAGEMENT’S DISCUSSION & ANALYSIS
5 Management of the City of San Mateo (the “City”) offers readers of the financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025.

Readers are encouraged to consider the information presented here in conjunction with additional 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 resources exceeded liabilities and deferred inflows of resources by $947.3 million (net position), which is a $91.5 million increase compared to the restated beginning net position. The total net position includes $651.0 million in net investment in capital assets, $135.7 million in restricted net position, and $160.6 million in unrestricted net position.  The beginning net position was restated to reflect the recalculation of compensated absence liabilities resulting from the implementation of GASB No. 101. As a result, the beginning net position decreased to $855.8 million from 860.8 million as stated in the fiscal year 2023-24 financial statements. This $5.0 million reduction is attributable to a $5.0 million increase in compensated absence liabilities at the end of fiscal year 2023–24. Within the increase in prior year’s compensated absence liabilities, $4.7 million and $.3 million were associated with governmental activities and business-type activities, respectively.  Total government-wide revenues from all sources was $355.9 million, an increase of $33.8 million from the prior year. Total revenues for governmental activities grew $4.7 million from the previous year, largely due to increases in property taxes and real property transfer taxes. Business-type activities saw an increase of $29.1 million in revenues compared to the prior year, primarily due to an increase in capital contributions from the sewer enterprise’s regional customers.  During the fiscal year, the City drew a total of $79.4 million from the Clean Water Revolving Fund Loan with the State Water Resources Control Board for the capital improvement projects of the wastewater treatment plant, jointly owned by San Mateo and Foster City/EMID. The new loan resulted in an increase of $80.2 million in long-term debt compared to the prior fiscal year.  Governmental funds reported combined fund balances of $277.4 million, an increase of $1.3 million or

0.5% in comparison with the prior year. Of the total fund balance, $105.2 million is available for spending at the City’s discretion (unassigned fund balance).  The Enterprise funds net position increased by $79.1 million to $469.4 million, an increase of 20.3% in comparison to the prior year restated fund balance. Of this amount, $225.8 million was unrestricted net position and available for use at the City’s discretion.  On June 30, 2025, the General Fund’s total fund balance was $119.5 million. The General Fund recorded $179.1 million in total revenues, $176.6 million in total expenditure, and $1 million in other financing uses, leading to a modest net gain of $1.5 million in current fiscal year. 157 of 1110
MANAGEMENT’S DISCUSSION & ANALYSIS
6 OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is 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 financial 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 position 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 basic services, including general 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 depreciation expenses. The City’s sewer and storm enterprises are the activities 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 financially 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 information presented for the primary government itself. The component unit, although legally separate, 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 28-31 of this report.

FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts that is used 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. 158 of 1110
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 statements. Governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances left at year-end that are available for spending. Consequently, the governmental fund financial statements provide a detailed shortterm view that helps the readers determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because this information does not encompass the long-term focus of the government-wide statements, additional information is provided that reconciles the governmental fund financial statements to the government-wide statements explaining the relationship (or differences) between them.

The governmental funds comprise 19 individual funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the General and Capital Projects funds, each of which is a major fund. Data for the other 17 governmental funds are combined into a single aggregated fund, the Non-major Governmental funds. Individual fund data for these Non-major Governmental funds is provided in the form of combining statements, beginning on page 142 of this report. The basic governmental fund financial statements can be found on pages 37-40 of this report.

Since July 1, 1986, the City has employed 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 a one-year instead of a two-year budget plan.

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 enterprise funds to account for its Sewer Fund and Storm Fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its general liability, fleet 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 and Storm Fund. In the Statement of Net Position, data for each enterprise fund is presented separately while all the internal service funds are combined into a single aggregated presentation. 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 43-47 of this report. 159 of 1110
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 fund 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 is 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 51-52 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 59-123 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. This information includes 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 related to non-major funds and internal service funds are also presented in this section. Required supplementary information can be found on pages 127-137 of this report.

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 $947.3 million.
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MANAGEMENT’S DISCUSSION & ANALYSIS
9 The following table presents a summary and net changes of the City’s net position as of June 30, 2025, and June 30, 2024.

Non-current liabilities and the unrestricted net position of fiscal year 2023-24 have been restated to reflect the implementation of GASB No. 101 related to calculation of compensated absence liabilities. The total net position as of fiscal year 2023-24 was $470.2 million before the restatement to $465.5 million. Additional details regarding the restatement are provided on Note 19 on page 122 of this report. 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Current and other assets 384.0 $ 391.9$ $ 361.7 $ 261.2 $ 745.7 $ 653.1 Capital assets 500.1 482.6 839.1 784.2 1,339.2$ 1,266.8 Total assets 884.1 874.5 1,200.8 1,045.4 2,084.9 1,919.9 Deferred outflows - deferred loss on refunding 0.6 0.7 - - 0.6 0.7 Deferred outflows - related to OPEB 4.2 4.5 0.6 0.7 4.8 5.2 Deferred outflows - related to pensions 38.4 52.7 3.8 4.9 42.2 57.6 - -
Total deferred outflows of resources 43.2 57.9 4.4 5.6 47.6 63.5 Current liabilities 62.0 68.7 16.2 11.0 78.2 79.7
Non-current liabilities 377.6 386.8 703.8 633.2 1,081.4 1,020.0 Total liabilities 439.6 455.5 720.0 644.2 1,159.6 1,099.7 Deferred gain on refunding - - 15.6 16.1 15.6 16.1
Deferred inflows - related to leases 8.4 9.2 - - 8.4 9.2 Deferred inflows - related to OPEB 1.4 1.8 0.2 0.3 1.6 2.1 Deferred inflows - related to pensions - 0.4 - 0.1 - 0.5 Total deferred inflows of resources 9.8 11.4 15.8 16.5 25.6 27.9 Net investment in capital assets 407.4 412.9 243.6 206.0 651.0 618.9 Restricted 135.7 111.2 - - 135.7 111.2
Unrestricted (65.2) (58.6) 225.8 184.3 160.6 125.7
Total net position (restated) $ 477.9 465.5$ $ 469.4 $ 390.3 $ 947.3 $ 855.8 Activities Activities Primary Government

STATEMENT OF NET POSITION
(Amounts in millions)
Governmental Business-Type Total
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MANAGEMENT’S DISCUSSION & ANALYSIS
10 As of June 30, 2025, the City reported within its net position $651.0 million of 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. This represents 68.7% of current net position.

The 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 $135.7 million, 14.3% of its net position, 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 $160.6 million in net position is unrestricted, representing 17.0% 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 position decreased by $6.6 million, resulting in a deficit of $65.2 million as of June 30, 2025. This decline was primarily driven by a $6.4 million increase in current expenditures compared to the prior year. The unrestricted net position remained in deficit, largely due to net pension liabilities of $255.7 million and net OPEB liabilities of $9.1 million.  In business-type activities, unrestricted net position increased by $41.5 million, rising from $184.3 million in the prior year to $225.8 million as of June 30, 2025. This increase was primarily driven by net income from the Sewer Fund operations.

The City’s overall net position increased $91.5 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. 162 of 1110
MANAGEMENT’S DISCUSSION & ANALYSIS
11 Expenses and unrestricted net position of fiscal year 2023-24 have been restated to reflect the implementation of GASB No. 101 related to calculation of compensated absence liabilities. Additional details regarding the restatement are provided on Note 19 on page 122 of this report. 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Revenues:

Program revenues:

Charges for services 41.7 $ $ 40.1 $ 88.7 $ 81.3 $ 130.4 $ 1 21.4 Operating grants and contributions 13.3 11.0 - - 13.3 11.0 Capital grants and contributions 4.4 13.2 25.6 8.2 30.0 21.4 General revenues:

Property taxes 85.2 81.3 - 85.2 81.3
Sales taxes 31.7 32.4 - 31.7 32.4
Property transfer taxes 17.2 8.6 - 17.2 8.6
Business, hotel & other taxes 12.9 15.0 - 12.9 15.0
Franchise taxes 3.5 3.4 - 3.5 3.4
Investment earnings & other revenue 17.2 17.4 14.5 10.2 31.7 27.6 Total revenues 227.1 222.4 128.8 99.7 355.9 3 22.1
Expenses:

General government 35.0 28.4 - - 35.0 28.4
Community development 14.3 14.6 - - 14.3 14.6
Public safety 97.6 95.3 - - 97.6 95.3
Public works 30.1 31.4 - - 30.1 31.4
Parks and recreation 24.6 25.2 - - 24.6 25.2
Library 10.7 11.0 - - 10.7 11.0
Interest on long term debt 2.4 2.4 - - 2.4 2.4
Sewer - - 49.0 45.3 49.0 45.3
Storm - - 0.7 - 0.7 -
Total expenses 214.7 208.3 49.7 45.3 264.4 2 53.6
Increase (decrease) in net position
before transfers 12.4 14.1 79.1 54.4 91.5 68.5
Change in net position 12.4 14.1 79.1 54.4 91.5 68.5
Net position - Beginning of Year (restated) 465.5 451.4 390.3 335.9 855.8 787.3 Net position - End of year $ 477.9 $ 4 65.5 $ 469.4 $ 390.3 $ 947.3 $ 8 55.8 Activities Activities Primary Government

STATEMENT OF ACTIVITIES
(Amounts in millions)
Governmental Business-Type Total
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MANAGEMENT’S DISCUSSION & ANALYSIS
12 GOVERNMENTAL ACTIVITIES
Governmental activities increased the City’s total net position by $12.4 million. Key elements contributing to the increase are described below.
• Overall, total revenues from governmental activities were $227.1 million, a $4.7 million increase compared to the prior fiscal year, primarily attributed to the increased property tax and real property transfer tax revenues. For the same period, expenses totaled $214.7 million, an increase of $6.4 million from prior year.
• Property tax revenues in the governmental funds totaled $85.2 million, an increase of $3.9 million or

4.8%. 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 60.7% of all property tax revenues and increased by $0.9 million compared to the prior fiscal year, driven by new developments and reassessment of sold properties. • For fiscal year 2024-25, VLF owed to the City was $16.3 million, but only $9.5 million was received, resulting in a VLF shortfall of $6.8 million. At the same time, due to the two-year gap in reimbursing the VLF shortfall, the City received $4.1 million of the fiscal year 2022-23 shortfall in fiscal year 2024- 25, bringing the total VLF revenue to $13.8 million, an increase of $2.8 million (or 25.5%) from the prior year. For fiscal year 2025-26, the City anticipated receiving $6.6 million in backfill from the fiscal year 2023-24 VLF shortfall. However, the State of California did not fully fund the VLF backfill in its fiscal year 2025-26 budget. Instead, the City only received $4.5 million, 67% of the funding owed. The County of San Mateo along with all the cities within the County have filed a lawsuit with the State of California regarding the VLF funding shortfall.
• Real property transfer tax revenues totaled $17.2 million, twice the level reported in the previous year.

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 the current year, the City received $6.2 million in Measure CC revenue, a $5.3 million increase from the prior year, which was the main factor behind the rise in total real property transfer tax revenues. • The City recorded $31.7 million in sales tax revenues, a decrease of $0.7 million (or 2.2%) compared to the prior fiscal year. This decline was partially due to a decrease in service station and autotransportation sales and a reduction in sales tax allocation from the County pool. • Transient occupancy tax (TOT) revenues decreased from $6.2 million in the prior year to $5.5 million in current fiscal year, primarily due to the closure of the Marriott Hotel. Of the $5.5 million in total TOT revenues, $4.7 million was recorded in the General Fund and the remaining in the 2% Hotel Tax Fund. • The City’s governmental activities accounted for $41.7 million in charges for services revenue, which was an increase of $1.6 million (or 4.0%) compared to the prior fiscal year. 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.
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MANAGEMENT’S DISCUSSION & ANALYSIS
14 The cost of all governmental activities for the fiscal year ended June 30, 2025, was $214.7 million. Some of the costs were paid by those directly benefiting from the programs ($41.7 million), by other governments and organizations which subsidized programs with operating grants and contributions ($13.3 million), or capital grants and contributions ($4.4 million).

BUSINESS-TYPE ACTIVITIES
Business-type activities increased the City’s net position by $79.1 million. Key elements contributing to the increase are described below.
• Total program revenues of $114.4 million, an increase of $24.8 million from the prior year. This was primarily due to a $17.4 million (or 212.2%) increase in capital grants and contributions. • Charges for services increased by $7.4 million to $88.7 million from $81.3 million in the prior year, primarily due to a 3% annual increase in the City’s sewer service rates. • The $17.4 million increase in capital grants and contributions was primarily due to two Interim Capital Cost Agreements between the City of San Mateo and the Town of Hillsborough (the “Town”), and between the City of San Mateo and the Crystal Springs County Sanitation District (the “District”) and the County of San Mateo (the “County”), for their share of project costs for the Clean Water Program.

Since the Government-Wide Financial Statements (as well as the Sewer Enterprise Fund) are accounted on a full-accrual basis, the full amounts due from the Town, the District and the County are recognized as revenue although those loans will be paid over 30 years (discounted by the percentage of project completion). During the current fiscal year, in the Sewer Fund, the City recognized $25.6 million capital contribution due from the Town of Hillsborough, the District and County, compared to $7.9 million in previous year.

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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MANAGEMENT’S DISCUSSION & ANALYSIS
15 Total business-type activities expenses for the fiscal year ended June 30, 2025, were $49.7 million, an increase of $4.4 million or 9.7%, 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 $263.8 million, an increase of $130.4 million compared to $133.4 million in the prior year, mainly due to proceeds from the new loan from the Clean Water Revolving Fund Loan with the State Water Resources. Increases in investment income, charges for services, and capital contributions were also significant drivers 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 non-depreciable assets decreased from $613.7 million to $224.7 million, reflecting the capitalization of Sewer capital project construction activities for the sewer collection and treatment systems during the fiscal year. The wastewater treatment plant, jointly owned by San Mateo and Foster City/EMID, was opened in September 2025.
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MANAGEMENT’S DISCUSSION & ANALYSIS
16 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, 2025, the City’s governmental funds combined ending fund balance was $277.4 million, which was an increase of $1.3 million from the prior fiscal year. Of the total fund balances, $105.2 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 unassigned fund balance of the General Fund was $106.9 million, while the total fund balance was $119.5 million. As a measure of liquidity, both unassigned fund balance and total fund balance can be compared to total fund expenditures. General Fund’s unassigned fund balance and total fund balance represent approximately 60.5% and 67.7% respectively of total General Fund expenditures of $176.6 million.

The City Council policy is to have reserves of at least three months of budgeted operating expenditures. The adopted 2024-25 budget for General Fund expenditures (excluding transfers out) was $168.8 million.

Therefore, the minimum amount of General Fund reserves required for compliance with the reserve policy in fiscal year 2024-25 was $27.1 million.

While the City’s unassigned fund balance is above the policy goal, the uncertainties to the General Fund from ongoing trends, such as the decline in TOT revenues, a flattening of sales tax revenue, the VLF shortfall, and the impact of CalPERS investment performance on the City’s pension contributions could likely result in a significant draw down on the General Fund’s Contingency Reserve, which is included as part of the unassigned fund balance.

A history of governmental funds revenues, expenditures, and changes in fund balances for the last ten fiscal years 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 have led to a higher Federal Funds Rate, but this appears to be changing based on the weakening job market and changing economy. This uncertainty within the economy makes it difficult to forecast home values and property taxes, sales tax revenues, and other impacts to the City’s revenue base.
 The increased cost to borrow money, which has continued and places pressure on prospective home buyers, could dampen the City’s real property transfer tax. 168 of 1110
MANAGEMENT’S DISCUSSION & ANALYSIS
17 General Fund
The General Fund is the City’s primary operating fund, supporting core services and accounting for most of tax revenues. In fiscal year 2024-25, General Fund total revenues increased by $9.0 million or 5.3% to $179.1 million. Major revenues include:

Property Tax
Property tax remains the City’s largest and most stable revenue source, generating $83.6 million in the fiscal year, $5.0 million more than the prior fiscal year. An increase of $2.8 million in Vehicle License Fee (VLF) inlieu property tax revenue accounted for most of the increase in total property tax revenue.

Sales Tax
Sales tax revenue, the second largest revenue, decreased by $0.7 million (or 2.5%) to $27.1 million. The decrease was primarily due to a lower sales tax allocation from the County pool.

Other Taxes
Other taxes, primarily consisting of Transient Occupancy Tax (TOT), real property transfer tax (RPTT), business tax and franchise fees, totaled $32.6 million in the fiscal year, reflecting an increase of $6.7 million from the previous year. The City recorded $4.7 million in TOT, $17.2 million in RPTT, $3.5 million franchise taxes and $7.2 million in other taxes. TOT revenue declined $.7 million due to the lingering effects of the Marriot Hotel closure. This decrease was offset by an $8.6 million (99.7%) increase in RPTT, which included a $3.3 million increase in traditional RPTT and a $5.3 million increase in the voter approved Measure CC revenues from the prior year.

Charges for Services
Revenues from charges for services decreased by $0.4 million (or 2.6%) to $15.2 million.

Expenditures
General Fund expenditures totaled $176.6 million, reflecting an increase of $19.0 million (or 12.1%) compared to the prior year. The increase was due to a number of factors including $9.1 million in increased expenses due to the inception of new lease liabilities per GASB 87. These lease liabilities were balanced out by an increase within Other Financing Sources and did not affect the fund balance. In addition, General Fund expenditures increased due to negotiated labor cost increases, fewer position vacancies, and rising operating expenses linked to inflation.

Fund Balance
For fiscal year 2024-25, the General Fund’s total revenues ($179.1 million) exceeded expenditures ($176.6 million) by $2.5 million, before $1.0 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 $1.5 million, increasing the General Fund balance to $119.5 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 fiscal year, the fund has a fund balance of $54.7 million, decreased by $4.1 million (or 7.0%) from the prior fiscal year. Total expenditures were $34.1 million, funding various capital projects, including $11.9 million for the citywide street rehabilitation and reconstruction program, $3.2 million for storm and flood control improvements, $4.3 million for parks projects, and $14.7 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. 169 of 1110
MANAGEMENT’S DISCUSSION & ANALYSIS
18 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.

Sewer Enterprise Fund
Sewer enterprise operations are the City’s main business-type activity. Total sewer fund net position was $466.1 million, an increase of $75.8 million, or 16.3%, over the prior fiscal year.

The unrestricted net position of the Sewer Fund at the end of the fiscal year was $222.5 million, an increase of $38.2 million (or 20.7%) from the prior fiscal year. This is due primarily to the scheduled rate increase and capital contributions for the capital improvement projects of the wastewater treatment plant. The scheduled rate increase ensures the Sewer 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.

Storm Enterprise Fund
The Storm Fund is a new enterprise fund for the City in fiscal year 2024-25. In January 2024, property owners voted to approve the Community Flood and Storm Protection Fee Ballot Measure. This measure allows the City Council to levy stormwater fees starting in fiscal year 2024-25.

The unrestricted net position of the Storm Enterprise Fund at the end of the fiscal year was $3.2 million, primarily from charges for services revenue. Total revenues for the Storm Fund were $3.9 million, while total expenditures amounted to $.7 million.

Internal Service Funds
The internal service funds’ total net position of $26.4 million increased by $0.9 million or 3.5% from the prior year. The unrestricted net position at the end of the year was $19.6 million, or 74.2% of total net position.

The Workers’ Compensation Insurance Fund’s net position increased by $1.5 million to $9.1 million. Revenue from charges for services is based on budget projections. The City continues to balance the workers’ compensation collection rate charged to operating departments with proactive programs aimed at reducing frequency and severity of workers’ compensation claims.

The Dental Self-Insurance Fund ended the fiscal year with a net position of $0.9 million, the same as prior year’s net position. The Benefits Fund’s ending net position was $1.6 million, an increase of $0.5 million compared to the prior year.

The Comprehensive Liability Insurance Fund’s ending net position declined from negative $2.4 million to negative $2.6 million, driven by higher insurance premiums.

The Vehicle and Equipment Replacement Fund ended fiscal year with a net position of $17.4 million, a decrease of $0.7 million (or 3.9%) 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 $0.0 million, a decrease of $0.2 million from the prior fiscal year. While the current collection rates remain adequate, an increase in recovery rates may be necessary in future years to maintain the fund’s long-term sustainability. 170 of 1110
MANAGEMENT’S DISCUSSION & ANALYSIS
19 GENERAL FUND BUDGETARY HIGHLIGHTS
The General Fund adopted budget for fiscal year 2024-25 reflected a $9.9 million deficit. In the final budget, total resources increased and charges to appropriations increased by $14.3 million, resulting in no change to the overall deficit, which remained at $9.9 million. However, by the close of the fiscal year, actual revenues closely matched total expenditures. As a result, the General Fund experienced a break-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 $6.6 million more than the final budgeted estimate, while total charges – actual expenditures and transfers out were $4.8 million under the final budget.

At the end of the fiscal year, the total fund balance of the General Fund was $119.5 million, a slight increase of $1.5 million compared to the prior fiscal year.

SUMMARY OF GENERAL FUND BUDGETARY COMPARISON SCHEDULE
Variance from
Final Budget
Original Final Actual Favorable
Budget Budget Results (Unfavorable)
Resources:

Revenues 168.2 172.5 179.1 6.6
Transfers in 2.3 2.5 2.5 -
Inception of lease liability - 9.1 9.1 -
Inception of subscription liability - 0.7 0.7 -
Total resources 170.5 184.8 191.4 6.6
Charges to appropriations:

Expenditures 168.8 180.7 176.6 4.1
Transfers out 11.6 14.0 13.3 0.7
Total charges 180.4 194.7 189.9 4.8
Net change in fund balance (9.9) (9.9) 1.5 11.4
Beginning fund balance 118.0
Ending fund balance $ 119.5
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MANAGEMENT’S DISCUSSION & ANALYSIS
20 The following schedule shows differences between the final estimated revenues and actual revenues of greater than $1.0 million in value (amounts in millions).

Actual revenues outperformed estimates in most categories. Notably, other taxes exceeded expectations by $3.9 million, primarily due to a significant amount of Real Property Transfer Tax and Measure CC revenue received in current year. Investment income exceeded expectations by $1.4 million, and charges for services brought in $1.6 million more than estimated Property taxes and sales tax stayed flat in current year.

Actual expenditure and transfers out were $4.8 million less than the final budget. The largest favorable variance was from the public works and parks and recreation departments.

Estimated Actual
Revenue Source Revenues Revenues Difference
Other taxes 28.7 32.6 3.9
Intergovernmental 3.6 4.8 1.2
Charges for services 13.6 15.2 1.6
Investment income 5.2 6.6 1.4
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MANAGEMENT’S DISCUSSION & ANALYSIS
21 CAPITAL ASSETS AND LONG-TERM DEBT ADMINISTRATION

CAPITAL ASSETS
The City’s capital assets for its governmental and business-type activities as of June 30, 2025, amount to $1.3 billion, which is $72.4 million more than the prior year. The capital assets consist of land, buildings, improvements, machinery 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 activity during the current fiscal year included city-wide sanitary sewer and storm improvements, and city-wide street rehabilitation and reconstruction. Additional information on the City’s capital assets can be found in Note 6 on pages 89-90 of this report.
2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Non-depreciable assets:

Land 52.1 $ 52.1 $ 4.0 $ 4.0 $ 56.1 $ 56.1 $
Construction in progress 45.0 30.4 220.7 609.7 265.7 640.1 Total non-depreciable assets 97.1 82.5 224.7 613.7 321.8 696.2 Depreciable assets (net of depreciation/amortization):

Building and improvements 103.3 108.6 - 103.3 - 108.6
Treatment plant & transmission lines - - 612.5 169.4 612.5 169.4 Machinery and equipment 10.4 9.3 1.7 1.1 12.1 10.4
Infrastructure 274.2 276.7 - 274.2 - 276.7
Leased assets - buildings and improvements 5.5 0.4 - - 5.5 0.4 Leased assets - machinery and equipment 5.6 - - - 5.6 - Subscription Assets 4.0 5.1 0.2 - 4.2 5.1
Total depreciable/amortizable assets (net) 403.0 400.1 614.4 170.5 1,017.4 570.6 Total capital assets $ 500.1 $ 482.6 $ 839.1 $ 784.2 $ 1,339.2 $ 1,266.8 Activities Activities Primary Government

CAPITAL ASSETS
(Amounts in millions)
Governmental Business-Type Total
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MANAGEMENT’S DISCUSSION & ANALYSIS
22 LONG-TERM DEBT
At the end of the current fiscal year, the City had total long-term debt outstanding $780.9 million. Of this amount, $12.2 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 $5.8 billion, and at June 30, 2025, the City was only at 0.21% 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 2025, San Mateo County's unemployment rate remained under 4%, reflecting a strong local job market that outperforms the state average. This economic strength has supported stable revenue streams for the City despite challenges in specific sectors.

The real estate market showed signs of slowing during fiscal year 2024-25 due to the sustained high-interest rate environment. While single family residential property sales activity has cooled, the median home price in San Mateo has remained stable, demonstrating the City housing market’s resilience and strength. During the fiscal year 2024-25, 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) and the voter approved Measure CC revenues as a result.

General Fund
Despite these positive factors, balancing the General Fund’s budget is challenging. While the City’s revenues are stable, expenditures have increased due to rising labor costs and sustained inflation and there continues to be a need to invest in the community’s infrastructure and improve services. 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
General Obligation Bonds 12.2 $ 14.0 $ - $ - $ 12.2 $ 14.0 $ Revenue Bonds 15.3 16.5 314.7 318.6 330.0 335.1
Advance Payable to other Governments 46.7 48.3 - - 46.7 48.3 Loans payable 3.1 3.7 374.9 295.50 378.0 299.2
Lease liability 11.1 0.4 - - 11.1 0.4
Subscription Liability 2.7 3.7 0.20 - 2.9 3.7
Total outstanding debt 91.1 86.6 689.8 614.1 780.9 700.7 Activities Activities Primary Government

OUTSTANDING DEBT
General Obligation and Revenue Bonds
(Amounts in millions)
Governmental Business-Type Total
174 of 1110
MANAGEMENT’S DISCUSSION & ANALYSIS
23 The General Fund is projecting a budget deficit in fiscal year 2025-26, with $175.8 million in total revenues (including transfers in) and $187.8 million in expenditures (including transfers out), resulting in a deficit of $12.0 million.

The adopted fiscal year 2025-26 General Fund budget reflects careful 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 adjustments and rising pension and healthcare contributions, continue to add pressure on the General Fund. These cost factors have been incorporated into the City's longterm financial forecast.

The General Fund Reserve Policy has been amended and is incorporated into the adopted fiscal year 2025-26 Annual Budget as summarized here. A Contingency Reserve will be maintained at 15% of the General Fund budgeted operational expenditures. Per the most recent Housing Element language, 20% of RDA residual property tax will be allocated annually to the Housing Set-Aside Reserve at the discretion of the City Council.

A Budget Stabilization Reserve will be set at 15% of the General Fund budgeted revenues. Finally, a Pension Stabilization Reserve has also been established to mitigate impacts of rising pension costs and prevent unexpected increases in unfunded pension liabilities from affecting city services. Overall, the General Fund Reserve is healthy as of June 30, 2025, with over $119.5 million available to fund these various reserves. These funds provide the City in fiscal year 2025-26 as well as in future budget years with 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 fiscal year 2025-26 budget reflects the City's commitment to fiscal responsibility. By leveraging its strong reserve position and adhering to prudent fiscal 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 2025, the City Council approved the five-year Capital Improvement Plan (CIP) and fiscal year 2025- 26 Capital Budget. The five-year CIP reflects the City’s commitment to improve and maintain City facilities and infrastructure, by investing $270 million over the next five years in capital projects, with $61.5 million for 2025-26. New funding and major changes included: increases in funding for roadway and bike/pedestrian capital improvements, as well as major capital improvement to exiting 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 fiscal year 2025-26. 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 began operations in September 2025. 175 of 1110
MANAGEMENT’S DISCUSSION & ANALYSIS
24 REQUESTS FOR INFORMATION
This financial report is designed to provide a general 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 information should be addressed to the Finance Director, 330 West 20th Avenue, San Mateo, California, 94403.
176 of 1110

BASIC FINANCIAL STATEMENTS
25 177 of 1110
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26 178 of 1110

GOVERNMENT-WIDE FINANCIAL STATEMENTS
27 179 of 1110
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 339,415,287 $ 263,825,699 $ 603,240,986 $ Accounts receivable, net 4,168,786 5,304,750 9,473,536
Interest receivable 4,138,977 359,369 4,498,346
Taxes receivable 6,433,903 - 6,433,903
Grants receivable 2,462,447 - 2,462,447
Leases receivable - current 320,612 - 320,612
Prepaid items, inventory, and deposits 930,264 359 930,623 Total current assets 357,870,276 269,490,177 627,360,453 Noncurrent assets:

Restricted cash and investments 3,008,208 30,534,830 33,543,038 Investment in JPA 10,177,664 - 10,177,664
Leases receivable 9,060,965 - 9,060,965
Loans and notes receivable, net 3,926,992 61,738,459 65,665,451 Capital assets:

Non-depreciable 97,057,767 224,663,981 321,721,748
Depreciable/amortizable, net 403,015,043 614,386,446 1,017,401,489 Total capital assets 500,072,810 839,050,427 1,339,123,237 Total noncurrent assets 526,246,639 931,323,716 1,457,570,355 Total assets 1,200,813,893 884,116,915 2,084,930,808

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 576,942 - 576,942
Related to OPEB 4,241,692 592,207 4,833,899
Related to pensions 38,378,021 3,773,247 42,151,268
Total deferred outflows of resources 43,196,655 4,365,454 47,562,109 June 30, 2025
Statement of Net Position
City of San Mateo
Primary Government
See accompanying Notes to the Basic Financial Statements. 28 180 of 1110
Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 24,795,208 1,091,763 25,886,971
Retention payable 5,123,396 - 5,123,396
Accrued payroll 3,024,419 392,646 3,417,065
Deposits payable 11,314,030 41,447 11,355,477
Interest payable 595,738 6,816,704 7,412,442
Unearned revenue 5,187,959 - 5,187,959
Compensated absences - due within one year 1,467,210 131,511 1,598,721 Claims payable - due within one year 3,998,000 - 3,998,000 Landfill postclosure cost payable - due within one year 119,689 - 119,689 Long-term debt - due within one year 6,408,422 7,689,263 14,097,685 Total current liabilities 62,034,071 16,163,334 78,197,405 Noncurrent liabilities:

Net OPEB liability 9,067,185 1,294,795 10,361,980
Net pension liability 255,682,682 19,391,597 275,074,279 Compensated absences - due in more than one year 11,871,066 1,064,040 12,935,106 Claims payable - due in more than one year 14,537,000 - 14,537,000 Landfill postclosure cost payable - due in more than one year 1,678,339 - 1,678,339 Long-term debt - due in more than one year 84,720,805 682,080,670 766,801,475 Total noncurrent liabilities 377,557,077 703,831,102 1,081,388,179 Total liabilities 719,994,436 439,591,148 1,159,585,584

DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding - 15,624,392 15,624,392
Related to leases 8,413,493 - 8,413,493
Related to OPEB 1,442,863 171,836 1,614,699
Total deferred inflows of resources 15,796,228 9,856,356 25,652,584

NET POSITION
Net investment in capital assets 407,405,337 243,595,525 651,000,862 Restricted:

Housing and economic development 12,549,087 - 12,549,087 Capital projects 90,567,587 - 90,567,587
Debt service 8,422,573 - 8,422,573
Landfill post-closure maintenance 4,496,945 - 4,496,945 Public safety 626,480 - 626,480
Solid waste and landfill 18,989,116 - 18,989,116
Total restricted 135,651,788 135,651,788 -
Unrestricted (deficit) (65,191,059) 225,793,158 160,602,099 Total net position $ 477,866,066 $ 469,388,683 $ 947,254,749 Primary Government
City of San Mateo
Statement of Net Position (Continued)
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 29 181 of 1110
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:

Governmental activities:

General government $ 6,846,213 35,035,480 $ 2,555,269 $ 207,867 $ 9,609,349 $ Community development 10,777,794 14,329,357 740,943 23,608 11,542,345 Public safety 2,992,438 97,594,346 3,200,895 - 6,193,333 Public works 30,139,286 12,960,751 6,287,157 3,191,854 22,439,762 Parks and recreation 24,557,407 7,748,286 385,268 265,349 8,398,903 Library 360,115 10,671,815 143,956 730,783 1,234,854
Interest on long-term debt 2,368,152 - - - -
Total governmental activities 214,695,843 41,685,597 13,313,488 4,419,461 59,418,546 Business-type activities:

Sewer 84,891,876 49,007,101 - 25,614,442 110,506,318
Storm 3,859,759 678,770 - - 3,859,759
Total business-type activities 49,685,871 88,751,635 - 25,614,442 114,366,077 Total primary government $ 130,437,232 264,381,714 $ 13,313,488 $ 30,033,903 $ 173,784,623 $

City of San Mateo
Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
See accompanying Notes to the Basic Financial Statements. 30 182 of 1110
Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:

Governmental activities:

General government $ - (25,426,131) $ (25,426,131) $
Community development - (2,787,012) (2,787,012)
Public safety - (91,401,013) (91,401,013)
Public works (7,699,524) - (7,699,524)
Parks and recreation (16,158,504) - (16,158,504)
Library - (9,436,961) (9,436,961)
Interest on long-term debt (2,368,152) - (2,368,152)
Total governmental activities (155,277,297) - (155,277,297) Business-type activities:

Sewer 61,499,217 - 61,499,217
Storm 3,180,989 - 3,180,989
Total business-type activities - 64,680,206 64,680,206
Total primary government 64,680,206 (155,277,297) (90,597,091) General Revenues and Transfers:

General revenues:

Taxes:

Property taxes 85,234,112 - 85,234,112
Sales taxes 31,672,809 - 31,672,809
Property transfer taxes 17,243,318 - 17,243,318
Transient occupancy taxes 5,485,684 - 5,485,684
Business license taxes 7,067,753 - 7,067,753
Franchise taxes 3,485,831 - 3,485,831
Other taxes 282,718 - 282,718
Total taxes 150,472,225 - 150,472,225
Investment income 16,073,461 13,252,318 29,325,779
Gain (loss) on sale of capital assets - 2,825 2,825
Miscellaneous revenue 1,104,241 1,210,069 2,314,310
Total general revenues and transfers 14,465,212 167,649,927 182,115,139 Change in net position 79,145,418 12,372,630 91,518,048 Net Position:

Beginning of year, as restated (Note 19) 465,493,436 390,243,265 855,736,701 End of year $ 477,866,066 $ 469,388,683 $ 947,254,749
For the Year Ended June 30, 2025
Statement of Activities (Continued)
City of San Mateo
Net (Expense) Revenue
and Changes in Net Position
See accompanying Notes to the Basic Financial Statements. 31 183 of 1110
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32 184 of 1110

FUND FINANCIAL STATEMENTS
33 185 of 1110
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34 186 of 1110
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. 35 187 of 1110
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36 188 of 1110
General Non-major Total
General Capital Projects Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments 125,723,745 $ 72,603,661 $ 103,416,497 $ 301,743,903 $ Restricted cash and investments held by fiscal agents - 2,950,609 57,599 3,008,208 Accounts receivable, net 1,591,119 336,605 1,458,753 3,386,477 Interest receivable 4,137,334 1,455 188 4,138,977
Taxes receivable 5,363,428 236,243 834,232 6,433,903
Grants receivable 443,266 1,413,560 602,578 2,459,404
Leases receivable 9,381,577 - - 9,381,577
Prepaid items, inventory, and deposits 284,638 - 3,502 288,140 Due from other funds 1,802,372 - - 1,802,372
Loans and notes receivable, net - 416,882 3,510,110 3,926,992 Total assets $ 77,959,015 148,727,479 $ 109,883,459 $ 336,569,953 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 5,849,709 $ 17,281,972 $ 949,280 $ 24,080,961 $ Retention payable - 5,123,396 - 5,123,396
Accrued payroll 2,697,292 - 269,670 2,966,962
Due to other funds - - 1,802,372 1,802,372
Deposits payable 10,517,240 - 657,534 11,174,774
Unearned revenues 1,710,884 816,754 2,660,321 5,187,959 Total liabilities 23,222,122 20,775,125 6,339,177 50,336,424

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 37,561 352,848 390,409
Related to leases 8,413,493 - - 8,413,493
Total deferred inflows of resources 8,413,493 37,561 352,848 8,803,902

Fund Balances:

Nonspendable 284,638 - 3,502 288,140
Restricted 575,000 32,790,715 104,941,433 138,307,148
Assigned 11,747,524 21,908,617 33,656,141 -
Unassigned (deficit) 106,931,699 (1,753,501) - 105,178,198 Total fund balances 119,538,861 54,699,332 103,191,434 277,429,627 Total liabilities, deferred inflows of
resources, and fund balances $ 148,727,479 $ 77,959,015 $ 109,883,459 $ 336,569,953 Major Funds
June 30, 2025
Governmental Funds
Balance Sheet
City of San Mateo
See accompanying Notes to the Basic Financial Statements. 37 189 of 1110
Total Fund Balances - Total Governmental Funds $ 277,429,627 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. 390,409 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 500,072,810
Less: capital assets reported in Internal Service Funds (6,838,074) Total capital assets 493,234,736
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 (1,467,210)
Compensated absences - due in more than one year (11,871,066) Long-term debt - due within one year (6,408,422)
Long-term debt - due in more than one year (84,720,805) Landfill postclosure cost payable - due within one year (119,689) Landfill postclosure cost payable - due in more than one year (1,678,339) Total long-term liabilities (106,265,531)
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. 576,942
Investment in joint ventures are not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. 10,177,664
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. (595,738) Aggregate net pension liability and total OPEB liability used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.

Net pension liability (255,682,682)
Net OPEB liability (9,067,185)
(264,749,867)
Deferred outflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.

Amount reported in Government-Wide Statement of Net Position Deferred outflows of resources related to OPEB 4,241,692 Deferred outflows of resources related to pensions 38,378,021 Total deferred outflows of resources 42,619,713
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 (1,442,863) Deferred inflows of resources related to pensions -
Total deferred inflows of resources (1,442,863)
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. 26,490,974 Net Position of Governmental Activities $ 477,866,066
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, 2025
See accompanying Notes to the Basic Financial Statements. 38 190 of 1110
General Non-major Total
General Capital Projects Governmental Governmental
Fund Fund Funds Funds
REVENUES:

Property taxes $ 83,534,637 $ 1,699,475 - $ $ 85,234,112 Sales taxes 27,118,537 4,554,272 31,672,809 -
Other taxes 32,625,541 939,762 - 33,565,303
Licenses, building and other permits 99,371 7,476,592 - 7,575,963 Fines, forfeitures and penalties 2,199,413 5,526 4,739,370 6,944,309 Intergovernmental 4,800,016 3,218,316 8,316,885 16,335,217 Charges for services 15,191,614 4,269,896 - 19,461,510
Investment income 6,601,231 3,042,944 4,611,492 14,255,667 Assessments and garbage collection 537,868 - 1,772,894 2,310,762 Parking meter and lease revenue 3,236,263 - 3,236,263 - Capital contributions 462,473 - 119,939 582,412
Other revenues 3,687,453 104,677 497,604 4,289,734
Total revenues 11,926,076 179,094,076 34,443,909 225,464,061

EXPENDITURES:

Current:

General government:

City Council 376,910 - - 376,910
City Manager - 2,596,915 390,632 2,987,547
City Clerk - 1,145,043 - 1,145,043
City Attorney - 1,157,108 289,279 1,446,387
Finance 4,290,342 - 45,658 4,336,000
Information technology - 4,356,356 117,643 4,473,999
Human resources 2,334,340 - - 2,334,340
Community development - 2,478,828 11,496,735 13,975,563 Public safety:

Police 62,095,869 - 1,497,560 63,593,429
Fire 28,747,664 - - 28,747,664
Public works 10,892,157 - 5,236,940 16,129,097
Parks and recreation 22,133,257 - - 22,133,257
Library - 9,258,253 - 9,258,253
Non-departmental 11,856,642 358,463 - 12,215,105
Capital outlay 33,449,410 9,956,613 1,989,378 45,395,401 Debt service:

Principal 2,612,396 587,515 3,168,773 6,368,684
Interest and fiscal charges 271,117 68,935 2,374,465 2,714,517 Total expenditures 34,105,860 176,559,810 26,965,526 237,631,196

REVENUES OVER (UNDER) EXPENDITURES 2,534,266 (22,179,784) 7,478,383 (12,167,135) OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - 5,901 - 5,901
Inception of lease liability 2,376,776 9,097,993 - 11,474,769 Inception of subscription liability - 696,727 73,324 770,051 Transfers in 15,695,263 2,535,500 3,040,000 21,270,763
Transfers out (13,288,867) - (6,772,467) (20,061,334)
Total other financing sources (uses) (952,746) 18,072,039 (3,659,143) 13,460,150 NET CHANGE IN FUND BALANCES 1,581,520 (4,107,745) 3,819,240 1,293,015 FUND BALANCES:

Beginning of year 58,807,077 117,957,341 99,372,194 276,136,612 End of year $ 54,699,332 119,538,861 $ 103,191,434 $ 277,429,627 $ For the Year Ended June 30, 2025
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. 39 191 of 1110
Net Change in Fund Balances - Total Governmental Funds $ 1,293,015 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 $1,048,674 added in internal service funds) ($668,170 of the governmental fund capital outlay expenditures were included within functional expenditures categories). 46,063,571 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 $1,311,521, was not reported as expenditures in the Governmental Funds. (22,527,648) 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). (4,826,999) Issuance of long-term liabilities provides current financial resources to governmental funds, but the issuance increased long-term liabilities in the Government-Wide Statement of Net Position.

Lease liability (11,474,769)
Subscription liability (770,051)
Due to the termination of a subscription-based information technology arrangement related to the fire operations system the SMC Fire derecognized the related subscription asset and liability, resulting in a gain of recognized in the statement of activities as follows:

Subscription asset, net (890,811)
Subscription liability 824,780
Gain/(loss) on termination (66,031)
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 6,368,684
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-term debt was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. This amount represented the changes in accrued interest from prior year. (21,930) 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. (69,076) Compensated absences expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (347,943) 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. 36,784 Investment in joint ventures are not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. This amount represents the change in joint ventures. (2,562,717) Certain pension expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in pension related deferred outflows of resources (14,288,945) Changes in net pension liabilities 13,353,589
Changes in pension related deferred inflows of resources 414,055 Certain OPEB expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in OPEB related deferred outflows of resources (302,155) Changes in total OPEB liabilities 414,405
Changes in OPEB related deferred inflows of resources 340,191 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. 978,305 Change in Net Position of Governmental Activities $ 12,372,630 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, 2025
See accompanying Notes to the Basic Financial Statements. 40 192 of 1110
Proprietary Funds Financial Statements
Sewer Fund - This fund is used to account for the activities of the City's wastewater collection and treatment operations.

Storm Fund - This fund is used to account for the activities of the City's stormwater collection, drainage and storage system, to safeguard neighborhoods from flooding and protect local waterways from pollution.

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. 41 193 of 1110
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42 194 of 1110
Governmental
Major Fund Non-major Fund Activities
Sewer Storm Internal
Fund Fund Total Service Funds
ASSETS
Current assets:

Cash and investments 260,279,687 $ 3,546,012 $ 263,825,699 $ 37,671,384 $ Accounts receivable, net 5,304,750 5,304,750 - 782,309
Grants receivable - - - 3,043
Interest receivable 359,369 - 359,369 -
Prepaid items, inventory, and deposits 359 - 359 642,124 Total current assets 265,944,165 3,546,012 269,490,177 39,098,860 Noncurrent assets:

Restricted cash and investments 30,534,830 30,534,830 - - Loans and notes receivable, net 61,738,459 61,738,459 - - Capital assets:

Non-depreciable 224,599,716 64,265 224,663,981 -
Depreciable, net 614,315,974 70,472 6,838,074 614,386,446 Total capital assets 838,915,690 134,737 839,050,427 6,838,074 Total noncurrent assets 931,188,979 134,737 931,323,716 6,838,074 Total assets 1,197,133,144 3,680,749 1,200,813,893 45,936,934

DEFERRED OUTFLOWS OF RESOURCES
Related to OPEB 593,707 (1,500) 592,207 -
Related to pensions 3,704,439 68,808 3,773,247 -
Total deferred outflow of resources 4,298,146 67,308 4,365,454 -

LIABILITIES
Current liabilities:

Accounts payable 1,088,039 3,724 1,091,763 714,247
Accrued payroll 386,339 6,307 392,646 57,457
Deposits payable 41,447 - 41,447 139,256
Interest payable 6,816,682 22 6,816,704 -
Compensated absences - due within one year 130,884 627 131,511 - Claims payable - due within one year - - - 3,998,000
Long-term debt - due within one year 7,665,441 23,822 7,689,263 - Total current liabilities 16,128,832 34,502 16,163,334 4,908,960 Noncurrent liabilities:

Net OPEB liability 1,296,853 (2,058) 1,294,795 -
Net pension liability 353,621 19,037,976 19,391,597 -
Compensated absences - due in more than one year 5,070 1,058,970 1,064,040 - Claims payable - due in more than one year - - - 14,537,000 Long term debt - due in more than one year 682,054,941 25,729 682,080,670 - Total noncurrent liabilities 703,448,740 382,362 703,831,102 14,537,000 Total liabilities 719,577,572 416,864 719,994,436 19,445,960

DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding - 15,624,392 15,624,392 -
Related to OPEB 173,525 (1,689) 171,836 -
Total deferred inflows of resources 15,797,917 (1,689) 15,796,228 -

NET POSITION
Net investment in capital assets 85,186 243,510,339 243,595,525 6,838,074 Unrestricted 222,545,462 3,247,696 225,793,158 19,652,900 Total net position $ 3,332,882 466,055,801 $ 469,388,683 $ 26,490,974 $ City of San Mateo
Statement of Net Position
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 43 195 of 1110
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44 196 of 1110
Governmental
Major Fund Non-major Fund Activities
Sewer Storm Internal
Fund Fund Total Service Funds
OPERATING REVENUES:

Charges for services $ 84,891,876 $ 3,859,759 $ 88,751,635 $ 65,153,794 Other 1,210,069 1,210,069 - 687,293
Total operating revenues 86,101,945 3,859,759 89,961,704 65,841,087 OPERATING EXPENSES:

Personnel services 15,181,698 586,608 15,768,306 50,678,437 Materials and supplies 14,752,099 89,089 14,841,188 13,270,741 Depreciation and amortization 5,133,070 2,851 5,135,921 1,311,521 Total operating expenses 35,066,867 678,548 35,745,415 65,260,699 OPERATING INCOME 51,035,078 3,181,211 54,216,289 580,388 NONOPERATING REVENUES (EXPENSES):

Investment income 13,100,425 151,893 13,252,318 1,524,585 Gain on sale of capital assets 2,825 - 2,825 39,718
Grants - - - 43,043
Interest expense (13,940,234) (222) (13,940,456) -
Total nonoperating revenues (expenses) (836,984) 151,671 (685,313) 1,607,346

INCOME BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 50,198,094 3,332,882 53,530,976 2,187,734

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 25,606,320 25,606,320 - -
Impact fees 8,122 - 8,122 -
Transfers in - - - 2,410,000
Transfers out - - (3,619,429) -
Total capital contributions and transfers 25,614,442 25,614,442 - (1,209,429) Changes in net position 75,812,536 3,332,882 79,145,418 978,305 NET POSITION:

Beginning of year, as restated (Note 19) 390,243,265 390,243,265 - 25,512,669 End of year $ 466,055,801 $ 3,332,882 $ 469,388,683 $ 26,490,974 City of San Mateo
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 45 197 of 1110
Governmental
Major Fund Non-major Fund Activities
Sewer Storm Internal
Fund Fund Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 91,930,942 $ 3,859,759 $ 95,790,701 $ 65,092,229 Cash payments to suppliers for goods and services (14,750,107) (85,365) (14,835,472) (12,677,802) Cash payments to employees for services (13,309,451) (292,038) (13,601,489) (50,738,454) Cash received from others 1,210,069 1,210,069 - 687,293 Net cash provided by operating activities 65,081,453 3,482,356 68,563,809 2,363,266

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in - - 2,410,000 -
Transfers out - - (3,619,429) -
Net cash (used in) noncapital financing activities - - (1,209,429) -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grants and contributions - - 43,043 -
Impact fees 8,122 - 8,122 -
Proceeds from sale of capital assets 2,825 - 2,825 56,443 Acquisition of capital assets, net (34,198,353) (137,588) (34,335,941) (1,048,674) Proceeds from issuance of debt 79,404,594 79,404,594 - - Inception of SBITA agreement 146,647 73,324 219,971 -
Principal payment of long-term debt (3,663,905) (23,773) (3,687,678) - Interest paid on debt and fiscal charges (14,727,642) (14,727,842) (200) - Net cash (used in) capital and related financing activities 26,972,288 (88,237) 26,884,051 (949,188) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest from investments 13,384,759 151,893 13,536,652 1,524,585 Net cash provided by investing activities 13,384,759 151,893 13,536,652 1,524,585 Net change in cash and cash equivalents 105,438,500 3,546,012 108,984,512 1,729,234 CASH AND CASH EQUIVALENTS:

Beginning of year 185,376,017 185,376,017 - 35,942,150
End of year $ 290,814,517 $ 3,546,012 $ 294,360,529 $ 37,671,384

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

Cash and cash investments $ 260,279,687 $ 3,546,012 $ 263,825,699 $ 37,671,384 Restricted cash and investments 30,534,830 30,534,830 - - Total cash and cash equivalents $ 290,814,517 $ 3,546,012 $ 294,360,529 $ 37,671,384 Proprietary Funds
Statement of Cash Flows
City of San Mateo
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 46 198 of 1110
Governmental
Major Fund Non-major Fund Non-major Fund Activities
Sewer Storm Storm Internal
Fund Fund Fund Service Funds

RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:

Operating income $ 51,035,078 $ 3,181,211 $ 54,216,289 $ 580,388 Adjustments to reconcile operating income to net
cash provided by operating activities:

Depreciation and amortization 5,133,070 2,851 5,135,921 1,311,521 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 30,794,277 30,794,277 - (58,522) Grants receivable - - (3,043) -
Prepaid items, inventory, and deposits (359) - (359) (37,950) Loans and notes receivable, net (22,739,402) (22,739,402) - - Deferred outflows - OPEB related 81,060 1,500 82,560 -
Deferred outflows - pension related 1,246,064 (68,808) 1,177,256 - Accounts payable 2,351 3,724 6,075 (149,827)
Retention payable - - - -
Accrued payroll 386,339 6,307 392,646 57,457
Deposits payable (1,015,809) (1,015,809) - 26,242
Compensated absences (225,356) 5,697 (219,659) -
Claims payable - - 637,000 -
Net OPEB liability (111,172) (2,058) (113,230) -
Net pension liability 586,575 353,621 940,196 -
Deferred inflows - OPEB related (91,263) (1,689) (92,952) - Deferred inflows - pension related - - - -
Total adjustments 14,046,375 301,145 14,347,520 1,782,878 Net cash provided by operating activities $ 65,081,453 $ 3,482,356 $ 68,563,809 $ 2,363,266 City of San Mateo
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 47 199 of 1110
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48 200 of 1110
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 $ 3,756,968 $ 5,278,336
Restricted cash and investments with fiscal agent 3,763,641 1 Accounts receivable 16,837 -
Total assets 7,537,446 5,278,337

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 11,359
Total deferred outflows of resources 11,359 -

LIABILITIES
Accounts payable 154,356 -
Interest payable - 626,771
Long-term debt - due within one year 4,475,000 -
Long-term debt - due in more than one year 28,026,174 - Total liabilities 154,356 33,127,945

DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding - 30,417
Total deferred inflows of resources 30,417 -

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments - 7,383,090 Dissolution of RDA (27,868,666) -
Total net position (deficit) $ (27,868,666) 7,383,090 $ City of San Mateo
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 51 203 of 1110
Custodial Private Purpose
Funds Trust Funds
ADDITIONS:

Fee collections for other governments $ - 724,003 $
Special assessments for other governments 5,040,692 -
Investment income 1,091 166,373
RDA property tax trust fund distribution 5,999,251 -
Total additions 5,931,068 6,000,342
DEDUCTIONS:

Administration 22,324 20,000
Payments on conduit bonds - principal 1,140,000 -
Payments on conduit bonds - interest 3,671,338 -
Payments to other organizations and governments 685,118 - Interest expense 1,053,190 -
Total deductions 5,518,780 1,073,190
Change in net position 412,288 4,927,152
NET POSITION (DEFICIT):

Beginning of year 6,970,802 (32,795,818)
End of period $ 7,383,090 $ (27,868,666)
City of San Mateo
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 52 204 of 1110
53 NOTES TO THE BASIC FINANCIAL STATEMENTS
205 of 1110
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City of San Mateo
Index of Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
55 Page
Note 1 – Summary of Significant Accounting Policies ............................................................................................. 59 A. Financial Reporting Entity ......................................................................................................................... 59 B. Basis of Presentation, Accounting and Measurement Focus ..................................................................... 60 C. Deferred Outflows and Inflows of Resources ............................................................................................ 63 D. Cash, Cash Equivalents and Investments ................................................................................................... 63 E. Restricted Cash and Investments ............................................................................................................... 64 F. Receivables ................................................................................................................................................ 65 G. Interfund Transactions ............................................................................................................................... 65 H. Inventories and Prepaid Items .................................................................................................................... 65 I. Leases ......................................................................................................................................................... 65 J. Subscription-Based Information Technology Arrangements (SBITAs) .................................................... 66 K. Capital Assets ............................................................................................................................................. 67 L. Long-Term Debt ........................................................................................................................................ 68 M. Compensated Absences .............................................................................................................................. 69 N. Claims and Judgements Payable ................................................................................................................ 70 O. Pension Plans ............................................................................................................................................. 70 P. Other Postemployment Benefits (OPEB) ................................................................................................... 70 Q. Fund Balances ............................................................................................................................................ 71 R. Net Position ................................................................................................................................................ 71 S. Property Taxes ........................................................................................................................................... 72 T. Use of Accounting Estimates ..................................................................................................................... 72 U. Implementation of New GASB Pronouncements for the Year Ended June 30, 2025 ................................ 72 V. Upcoming Government Accounting Standards Implementations .............................................................. 73 Note 2 – Cash and Investments .................................................................................................................................. 73 A. Demand Deposits ....................................................................................................................................... 74 B. Investments Authorized by the California Government
Code and the City’s Investment Policy ............................................................................................... 75 C. Risk Disclosure .......................................................................................................................................... 75 D. Fair Value Measurement ............................................................................................................................ 79 E. Investment in State Investment Pool .......................................................................................................... 81 F. Investment in California Asset Management Program (CAMP) ............................................................... 81 G. Investment in San Mateo County Investment Pool .................................................................................... 81 Note 3 – Lease Receivable ........................................................................................................................................... 81 Note 4 – Loans and Notes Receivable ........................................................................................................................ 82 Note 5 – Interfund Transfers ...................................................................................................................................... 88 Note 6 – Capital Assets ................................................................................................................................................ 89 A. Governmental Activities ............................................................................................................................ 89 B. Business-Type Activities ........................................................................................................................... 90 207 of 1110
City of San Mateo
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
56 Page
Note 7 – Long-Term Liabilities .................................................................................................................................. 91 A. Summary .................................................................................................................................................... 91 B. Governmental Activities ............................................................................................................................ 92 C. Business-Type Activities ........................................................................................................................... 97 D. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of San Mateo ...................................................................... 102 Note 8 – Special Assessment Debt with No City Commitment .............................................................................. 104 Note 9 – Compensated Absences .............................................................................................................................. 104 A. Governmental Activities .......................................................................................................................... 104 B. Business-Type Activities ......................................................................................................................... 105 Note 10 – Landfill Closure ........................................................................................................................................ 105 Note 11 – Pension Plans ............................................................................................................................................. 106 A. Summary .................................................................................................................................................. 106 B. General Information about Pension ......................................................................................................... 106 C. Social Security ......................................................................................................................................... 112 Note 12 – Other Postemployment Benefits .............................................................................................................. 113 A. Summary .................................................................................................................................................. 113 B. General Information about OPEB ............................................................................................................ 113 C. 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 .................................................................................................. 120 Note 16 – Fund Balance Classification ..................................................................................................................... 120 Note 17 – Net Investment in Capital Assets ............................................................................................................. 121 Note 18 – Successor Agency Private Purpose Trust For Assets of Former Redevelopment ............................... 121 208 of 1110
City of San Mateo
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
57 Page
Note 19 – Adjustments and Restatements of Beginning Balances ......................................................................... 122 Note 20 – Commitments and Contingencies ............................................................................................................ 123 A. Litigation .................................................................................................................................................. 123 B. Contingent Liabilities ............................................................................................................................... 123 C. Federal and State Grants .......................................................................................................................... 123 D. Contractual Commitments ....................................................................................................................... 123 209 of 1110
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City of San Mateo
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
59 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 Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards 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 September 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; sanitation; leisure services; planning and zoning; general administration services; and redevelopment.

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 entity’s financial statements to be misleading or incomplete.

Blended Component Units
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 substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

San Mateo Joint Powers Financing Authority (JPFA)
The San Mateo Joint Powers Financing Authority (“JPFA”) was created in 1993. The Financing Authority is a joint exercise of joint powers. The City Council serves as directors of the JPFA. The purpose of the JPFA is to act as a financing/lending type of entity only. No separate annual financial statements are prepared for the JPFA. Since the City Council previously served as the government board for this component unit, the City’s component unit was considered to be a blended component unit. Blended component units, although legally separate entities, are in substance, part of the City’s operations and financial information was reported with the primary government. The activities of the JPFA are accounted in the various governmental funds of the City. 211 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
60 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing 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. Fiduciary activities of the City are not included in these statements.

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

Program revenues include charges for services, special 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, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 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. 212 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
61 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 expenditures 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 available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days for all revenues except grants, which use a six-month availability period.

Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in-lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within 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 available 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 intergovernmental 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. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include funds which provide services directly to other City funds. These areas of service include fleet maintenance, facilities maintenance, and comprehensive liability. 213 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
62 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
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 the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are 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 GovernmentWide 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 expenditures 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 charges 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. 214 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
63 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 for 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, private 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 Agency) for the City of San Mateo.

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

Successor Agency of the Redevelopment Agency for the City of San Mateo The Redevelopment Obligation Retirement Fund was created to serve as a custodian for the assets and to wind down the affairs of the RDA on February 1, 2012, pursuant to Assembly Bill x1 26. Its purpose is to expeditiously wind down the affairs of the dissolved Redevelopment Agency (RDA). The Successor Agency is a separate public entity from the City, subject to the direction of an oversight board. The City Council serves as the governing board of the Successor Agency. In 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 the former RDA until all enforceable obligations of the former 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 deemed for governmental use and future development. The Department of Finance approved the amendment to the Last and Final ROPS, and its confirmation that this entire transaction would be considered the first of two allowed amendments to the Last and Final ROPS in a letter dated December 13, 2017. 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 Inflows 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 that 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. 215 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
64 Note 1 – Summary of Significant Accounting Policies (Continued) D. Cash, Cash Equivalents and Investments (Continued)
Investments are reported in the accompanying 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. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year, and may result in negative investment income in the accompanying financial statements. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance, except 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 flows, amounts reported as cash and cash equivalents, include amounts on deposit in the City pool and any short-term, highly liquid 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, quoted 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. 216 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
65 Note 1 – Summary of Significant Accounting Policies (Continued) F. Receivables
Customer or trade receivables are reported as “accounts receivable” and are shown net of an allowance for uncollectible accounts based on historical 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 spending measurement focus. Recognition 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 outstanding between the governmental activities and businesstype 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 individual inventory is consumed. Prepaid items are recorded at cost. Using the consumption method, prepaid items are recorded as expenditures over the period that service is provided. Reported inventory and prepaid 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 commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets 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, 2025
66 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 circumstances that would require a remeasurement 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 longterm debt on the statement of net position.

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

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of 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. 218 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
67 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 capitalizable 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 related to SBITAs include how the City determines (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 SBITA 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 which 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 that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement 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 capitalization threshold of $5,000 - $25,000 depending on asset type.

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

Capitalization
Asset Type Threshold
General capital assets $10,000
Infrastructure capital assets $100,000
Intangible assets $1,000,000
219 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
68 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 City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, water purification and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storm water conveyance system, and buildings combined with the site amenities such as parking and 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 property 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 date of construction/acquisition to the current date was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.

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.
220 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
69 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 shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. Governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Debt issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

M. Compensated Absences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled (for example paid in cash to the employee or payment to an employee flex spending account) during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick leave. The liability for compensated absences is reported as incurred in the government-wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable.

Vacation: The City’s policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment at the employee’s current pay rate upon separation from employment.

Sick Leave: The City’s policy permits employees to accumulate earned but unused sick leave. All sick leave lapses when employees leave the employ of the City and, upon separation from service, no monetary obligation exists.

However, a liability for estimated value of sick leave that will be used by employees as time off is included in the liability for compensated absences.

During the current year, the City implemented GASB Statement No. 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separation of employment, the City now recognizes an estimated amount of sick leave earned as of year-end that will be used by employees as time off in future years as part of the liability for compensated absences.

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. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund. 221 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
70 Note 1 – Summary of Significant Accounting Policies (Continued) N. Claims and Judgments Payable
The short-term and long-term workers’ compensation claims 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 Internal Service Fund. The short-term liability which will be liquidated with current financial resources is the amount of settlement reached, but unpaid, related to claims and judgments entered.

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

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

The following timeframes are used for pension reporting:

Valuation date June 30, 2023
Measurement date June 30, 2024
Measurement period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, 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, 2024
Measurement period July 1, 2023 to June 30, 2024
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
71 Note 1 – Summary of Significant Accounting Policies (Continued) 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 required 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.

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

Unassigned – This category is for any balances that have no restrictions placed upon them. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific 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 reduced by any debt outstanding and any deferred outflows/inflows of resources related to such borrowings that are attributable to the acquisition, construction or improvement of those assets. If there are significant unspent related debt 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.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
72 Note 1 – Summary of Significant Accounting Policies (Continued) 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, retaining 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 property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are levied provided they become available as defined above.

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 applicable, 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, 2025 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, 2025. 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. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Implementation of this Statement had a significant effect on the City's financial statements for the fiscal year ended June 30, 2025. See Note 19.

GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable 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. Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2025.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
73 Note 1 – Summary of Significant Accounting Policies (Continued) 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. 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 statement is effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 104 – In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized 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. Subscription 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, 2025 as follows:

Fiduciary
Governmental Business-Type Fund Financial
Activities Activities Total Statements Total
Cash and investments
Held by City Treasury 339,415,287 $ 263,825,699 $ 603,240,986 $ 9,035,304 $ 612,276,290 $ Restricted cash and investments: Held by fiscal agents 3,008,208 30,534,830 33,543,038 3,763,642 37,306,680 Total cash and investments $ 342,423,495 $ 294,360,529 $ 636,784,024 $ 12,798,946 $ 649,582,970 Government -Wide Statement of Net Position
Cash and investments at June 30, 2025, consisted of the following:

Cash on hand and deposits:

Cash on hand 14,479 $
Deposits with financial institution 3,444,580
Total cash on hand and deposits 3,459,059
Investments:

Local Area Investment Funds (LAIF) 74,064,905
CAMP 108,979,685
San Mateo County Pool 48,536,737
Investments 377,235,904
Total investments 608,817,231
Cash and investments with fiscal agent 37,306,680
Total cash and investments $ 649,582,970
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
74 Note 2 – Cash and Investments (Continued)
The City maintains a cash and investment pool for all funds. Certain restricted funds that are held an invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investment held by trustees.

A. Demand Deposits
The carrying amounts of the City’s demand deposits were $3,444,580 at June 30, 2025. Bank balances were $3,645,328 at that date, the total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

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

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest 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. 226 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
75 Note 2 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

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%
Money Market/Mutual Funds N/A 20% 10%
Prime Commercial Paper 270 days 10% 5%
Medium-term Corporate Notes 5 years 30% 5%
Obligations of State of California or Other California Local Agency 5 years 20% 5% Non-negotiable Certificates of Deposit 3 years 30% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Asset-Backed Securities 5 years 10% 5%
Non-Agency Mortgage Securities 5 years 10% 5%
* Based on state law requirements or City investment policy requirements, whichever is more restrictive.

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

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025, the City’s deposits (bank balances) were collateralized under California Law.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
76 Note 2 – Cash and Investments (Continued)
C. Risk Disclosure (Continued)
Disclosure Relating to Concentration of Credit Risk
The investment policy of the City contains requirements that no more than 5 percent of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy. GASB Statement No. 40 requires disclosure by amount and issuer, of investments in any one issuer that represent 5% or more of total investments. At June 30, 2025, the City had no investment (other than U.S. Treasury securities, mutual funds, and external investment pools) that represents 5% or more of the City's total investments.

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rate will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by 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 provided by the following table that shows the distribution of the City’s investments by maturity. For purposes of the schedule shown on the next page, any callable securities are assumed to be held to maturity.
228 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
77 Note 2 – Cash and Investments (Continued)
C. Risk Disclosure (Continued)
Disclosures Relating to Interest 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. Government Treasury and Agencies:

Federal Farm Credit Bank Bonds (FFCB) $ 9,433,216 $ 4,870,787 $ 2,658,827 $ 1,903,602 $ - $ - Federal Home Loan Bank Bonds (FHLB) 17,278,748 12,461,880 4,816,868 - - - Federal Home Loan Mortg. Corp. (FHLMC) 2,983,059 2,983,059 - - - - Federal Natl. Mortg. Assn. Notes (FNMA) 2,971,009 2,971,009 - - - - US Treasuries 138,378,623 11,359,298 15,150,553 28,461,535 32,133,011 51,274,226 Corporate Notes:

Amazon.com Inc 2,402,352 1,129,636 1,272,716 - - -
American Express Company 3,034,115 - - 3,034,115 - -
Apple Inc 732,803 - 732,803 - - -
Bank of America Corp. 3,019,038 - - 3,019,038 - -
Bank of Montreal 723,655 - 723,655 - - -
BNY Mellon Corp 838,419 - 838,419 - - -
Berkshire Hathaway 2,788,852 - - 2,788,852 - -
Caterpillar Financial Service 4,530,072 - 2,995,500 - 1,534,572 - Charles Schwab Corp. 729,490 729,490 - - - -
Chubb INA Holdings Inc. 1,465,560 - - - 1,465,560 -
Cisco Systems Inc. 1,219,482 - - 1,219,482 - -
Duke Energy Carolinas LLC 1,995,133 - - 1,995,133 - -
Duke Energy Florida LLC 1,857,162 - - - 1,857,162 -
Eli Lilly and Company 1,931,832 - - - 1,931,832 -
Guardian Life 5,596,755 - - 813,512 757,613 4,025,630
Home Depot Inc 3,362,027 - - 3,362,027 - -
Honda Motor Co., Ltd 2,660,933 - - - 2,660,933 -
Honeywell Intl 3,058,040 - 3,058,040 - - -
John Deere Capital Corp 2,026,734 - 1,015,814 - 1,010,920 - JP Morgan Chase & Co 2,019,068 - 2,019,068 - - -
Mass Mutual 6,027,203 - - 1,541,883 - 4,485,320
Meta Platforms, Inc. 1,533,858 - - - 1,533,858 -
Metlife 5,239,712 - 1,172,245 - 1,527,270 2,540,197
Morgan Stanley 3,062,846 - - - 3,062,846 -
National Rural Utilities 1,534,258 - - - 1,534,258 -
New York Life Global 5,830,221 - 4,669,251 - 1,160,970 - Northwestern Mutual 2,021,776 - - 2,021,776 - -
Paccar Financial Corp 4,169,253 - 4,169,253 - - -
PepsiCo, Inc. 2,067,441 - - - 2,067,441 -
Prologis 2,682,926 - 2,682,926 - - -
Realty Income Corp 2,215,718 - 2,215,718 - - -
Royal Bank of Canada 3,131,581 - 1,904,094 - 1,227,487 - State Street Corporation 3,063,902 - - - 3,063,902 -
Target Corp 411,653 - 411,653 - - -
Toronto-Dominion Bank 2,205,555 - - 843,031 1,362,524 - Toyota Motor Credit Corp 4,374,218 - 2,358,185 - 2,016,033 - United Health Group Inc 2,635,178 889,432 772,892 972,854 - - Wal-Mart Stores 2,181,029 - 178,793 2,002,236 - -
Supranational 6,220,238 2,962,599 - - 3,257,639 -
Asset-Backed Securities 40,341,144 24,114 1,542,287 11,402,332 11,831,843 15,540,568 Collateralized Mortgage Obligations 44,484,752 1,540,317 1,693,796 9,339,009 23,400,466 8,511,164 Money Market Funds 9,312,120 9,312,120 - - - -
Municipal Bonds 5,453,146 - - - 5,453,146 -
Local Agency Investment Fund 74,064,905 74,064,905 - - - - California Asset Management Program 108,979,685 108,979,685 - - - - San Mateo County Pool 48,536,737 48,536,737 - - - -
Total investments $ 608,817,231 $ 282,815,068 $ 29,520,546 $ 85,270,921 $ 94,928,982 $ 116,281,715 Maturities (in years)
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
78 Note 2 – Cash and Investments (Continued)
C. Risk Disclosure (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

However, some issuers do not seek a credit rating. For instance, the California Local Agency Investment Fund (LAIF) has not sought or received a credit rating. In these cases, the purchaser is solely responsible for performing their own due diligence before purchasing an investment or participating in an external investment pool. Certificates of deposit of $250,000 or less are fully insured by the Federal Deposit Insurance Corporation (FDIC), and therefore, do not seek a credit rating.

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, 2025, the City’s deposits and investments were rated as follows:

Moody's S&P
Deposits P-1 to AA3 A-1+ to AAInvestments:

Securities of U.S. Government Agencies:

Federal Farm Credit Bank Bonds (FFCB) Aa1 AA+
Federal Home Loan Bank Bonds (FHLB) AA+ AA+
Federal Home Loan Mortg. Corp. Notes (FHLMC) AA+ AA+
Federal National Mortg. Assn. Notes (FNMA) AA+ AA+
US Treasuries AA+ AA+
Corporate Notes:

Amazon.com Inc A1 AA
American Express Company A2 AApple Inc Aaa AA+
Bank of America Corp A1 ABank of Montreal A2 ABerkshire Hathaway Aa2 AA BNY Mellon Corp Aa2 AACaterpillar Financial Service A2 A Charles Schwab Corp A2 AChubb INA Holdings Inc A2 A
Cisco Systems Inc A1 AADuke Energy Carolinas LLC Aa3 A Duke Energy Florida LLC A1 A
Eli Lilly and Company Aa3 A+
Guardian Life Aa1 AA+
Home Depot Inc A2 A
Honda Motor Co., Ltd A3 AHoneywell Intl A2 A
John Deere Capital Corp A1 A
JP Morgan Chase & Co A1 A
Mass Mutual Aa3 AA+
Meta Platforms, Inc. Aa3 AAMetlife Aa3 AACredit Quality Ratings 230 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
79 Note 2 – Cash and Investments (Continued)
C. Risk Disclosure (Continued)
Disclosures Relating to Credit Risk (Continued)
Moody's S&P
Morgan Stanley A1 ANational Rural Utilities A2 N/A
New York Life Global Aa1 AA+
Northwestern Mutual Aa1 AA+
Paccar Financial Corp A1 A+
PepsiCo, Inc. A1 A+
Prologis A2 A
Realty Income Corp A3 ARoyal Bank of Canada A1 A
State Street Corporation Aa2 AATarget Corp A2 A
Toronto-Dominion Bank A2 AToyota Motor Credit Corp A1 A+ United Health Group Inc A2 A+
Wal-Mart Stores Aa2 AA
Asset-Backed Securities Aaa AAA
Collateralized Mortgage Obligations Aa1 to Aaa AA+ to AAA Local Agency Investment Funds Not Rated Not Rated
San Mateo County Pool Not Rated Not Rated
California Asset Management Program Not Rated Not Rated Supranational Aaa AAA
Money Market Funds Aaa AAAm
Municipal Bonds Aa1 to Aa2 AA+ to AACredit Quality Ratings D. Fair Value Measurement
At June 30, 2025, investments, excluding restricted cash and investments held by fiscal agent, are reported at fair value based on quoted market prices. The table on the following page presents the fair value measurements of investments recognized in the accompanying Financial Statements measured at fair value on a recurring basis and the level within GASB Statement No. 72 fair value hierarchy in which the fair value measurements fall at June 30, 2025.

Treasury Securities, Federal Farm Credit Bank Bonds, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation Notes and Mortgage-Backed Securities, Federal National Mortgage Association Notes, and Corporate Notes categorized as Level 2 are valued based on matrix pricing which use observable market inputs such as yield curves and market indices that are derived 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. 231 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
80 Note 2 – Cash and Investments (Continued)
D. 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) 9,433,216 $ 1.55% - $ 9,433,216 $ - $ Federal Home Loan Bank Bonds (FHLB) 17,278,748 2.84% - 17,278,748 - Federal Home Loan Mortg. Corp. (FHLMC) 2,983,059 0.49% - 2,983,059 - Federal Natl. Mortg. Assn. Notes (FNMA) 2,971,009 0.49% - 2,971,009 - US Treasuries 138,378,623 22.73% - 138,378,623 -
Corporate Notes:

Amazon.com Inc 2,402,352 0.39% - 2,402,352 -
American Express Company 3,034,115 0.50% - 3,034,115 -
Apple Inc 732,803 0.12% - 732,803 -
Bank of America Corp. 3,019,038 0.50% - 3,019,038 -
Bank of Montreal 723,655 0.12% - 723,655 -
BNY Mellon Corp 838,419 0.14% - 838,419 -
Berkshire Hathaway 2,788,852 0.46% - 2,788,852 -
Caterpillar Financial Service 4,530,072 0.74% - 4,530,072 - Charles Schwab Corp. 729,490 0.12% - 729,490 -
Chubb INA Holdings Inc. 1,465,560 0.24% - 1,465,560 -
Cisco Systems Inc. 1,219,482 0.20% - 1,219,482 -
Duke Energy Carolinas LLC 1,995,133 0.33% - 1,995,133 - Duke Energy Florida LLC 1,857,162 0.31% - 1,857,162 -
Eli Lilly and Company 1,931,832 0.32% - 1,931,832 -
Guardian Life 5,596,755 0.92% 5,596,755 - -
Home Depot Inc 3,362,027 0.55% 3,362,027 - -
Honda Motor Co., Ltd 2,660,933 0.44% 2,660,933 - -
Honeywell Intl 3,058,040 0.50% 3,058,040 - -
John Deere Capital Corp 2,026,734 0.33% 2,026,734 - -
JP Morgan Chase & Co 2,019,068 0.33% 2,019,068 - -
Mass Mutual 6,027,203 0.99% 6,027,203 - -
Meta Platforms, Inc. 1,533,858 0.25% 1,533,858 - -
Metlife 5,239,712 0.86% 5,239,712 - -
Morgan Stanley 3,062,846 0.50% 3,062,846 - -
National Rural Utilities 1,534,258 0.25% 1,534,258 - -
New York Life Global 5,830,221 0.96% 5,830,221 - -
Northwestern Mutual 2,021,776 0.33% 2,021,776 - -
Paccar Financial Corp 4,169,253 0.68% 4,169,253 - -
PepsiCo, Inc. 2,067,441 0.34% 2,067,441 - -
Prologis 2,682,926 0.44% 2,682,926 - -
Realty Income Corp 2,215,718 0.36% 2,215,718 - -
Royal Bank of Canada 3,131,581 0.51% 3,131,581 - -
State Street Corporation 3,063,902 0.50% 3,063,902 - -
Target Corp 411,653 0.07% - 411,653 -
Toronto-Dominion Bank 2,205,555 0.36% 2,205,555 - -
Toyota Motor Credit Corp 4,374,218 0.72% 4,374,218 - -
United Health Group Inc 2,635,178 0.43% 2,635,178 - -
Wal-Mart Stores 2,181,029 0.36% 2,181,029 - -
Supranational 6,220,238 1.02% 6,220,238 - -
Asset-Backed Securities 40,341,144 6.63% 40,341,144 - - Collateralized Mortgage Obligations 44,484,752 7.31% 44,484,752 - - Total investments subject to fair value 362,470,638 $ 362,470,638 - $ $ - Investments not subject to the fair value hierarchy:

Money Market Funds 9,312,120 1.53%
Municipal Bonds: 5,453,146 0.90%
Local Agency Investment Fund 74,064,905 12.17%
California Asset Management Program 108,979,685 17.90%
San Mateo County Pool 48,536,737 7.97%
Total investments $ 608,817,231 100.00%
Fair Value Measurement Using
232 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
81 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, 2025, the City had $74,064,905 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, 2025, the City had $108,979,685 invested 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 California Joint Exercise of Powers Act for the purpose of exercising the common power of its Participants to invest 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, 2025 was $22.3 billion. A board of five trustees 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, 2025 the amortized cost approximated is the City’s cost.

G. Investment in San Mateo County Investment Pool
As of June 30, 2025, the City had $48,536,737 invested in the San Mateo County Investment Fund (County Pool) that is regulated by Code Section 16429 under the oversight of the Treasurer of the County. The City reports its investment in the County Pool at the fair value amount provided by the County. Included in the County Pool’s investment portfolio are US Treasury Notes, Obligations issued by agencies of the United States Government, LAIF, Corporate Notes, Commercial Paper, 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 1.01103 was used to calculate the fair value of the investments in the County Pool. At June 30, 2025, the total amount invested by all public agencies in the County Pool was approximately $9.0 billion.

Note 3 – 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, 2025, the City recognized $533,222 in lease revenue and $285,630 in interest revenue. At June 30, 2025, the City reported a deferred inflow of resources related to leases of $8,413,493.

A summary of changes in lease receivable for the fiscal year ended June 30, 2025 is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Leases receivable $ 10,032,574 $ (650,997) - $ $ 9,381,577 $ 320,612 $ 9,060,965 Classification
233 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
82 Note 3 – Lease Receivable (Continued)
As of June 30, 2025, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2026 320,612 $ 278,535 $ 599,147 $
2027 321,430 268,656 590,086
2028 339,676 258,825 598,501
2029 382,484 247,736 630,220
2030 399,085 235,851 634,936
2031 - 2035 2,210,721 981,514 3,192,235
2036 - 2040 1,751,084 688,998 2,440,082
2041 - 2045 2,249,998 390,474 2,640,472
2046 - 2048 1,406,487 58,766 1,465,253
Total $ 9,381,577 $ 3,409,355 $ 12,790,932
Note 4 – Loans and Notes Receivable
At June 30, 2025, loans and notes receivable consisted of the following:

Loans and
Loans and Notes Allowance for Notes Receivable, Unavailable Receivable Doubtful Accounts Net Revenue
Governmental Activities:

First-time Homebuyer Loans 10,039,799 $ (10,016,877) $ 22,922 $ - $ Home Rehabilitation Loans 525,317 - 525,317 116,576
106 N. El Dorado 450,000 (450,000) - -
Darcy Building 1,333,186 (1,164,564) 168,622 -
Edgewater Isle Senior Apartments 5,204,107 (5,204,107) - - Belmont Building 800,000 (800,000) - -
St. Matthew Hotel 2,858,617 (2,858,617) - -
Rotary Hacienda & Rotary Floritas 4,995,953 (4,390,953) 605,000 - First Step for Families (Turning Point) 771,479 (771,479) - - 12 N. Idaho Street 100,000 (100,000) - -
200 S. Delaware Street 2,191,035 (2,191,035) - -
232 S. Humboldt Street 572,500 (572,500) - -
11 S. Delaware Street 1,304,813 (1,304,813) - -
El Camino Family Housing 3,902,382 (3,902,382) - -
MP San Mateo Transit Associates 8,681,651 (8,681,651) - - MP Delaware Pacific Associates LP 1,271,386 (1,271,386) - - MP Foster Square 386,607 (386,607) - -
Gateway Commons Assessment Loan 265,469 - 265,469 29,660 Cal Home Loans 416,882 - 416,882 37,561
HIP Housing - 1100 Cypress Avenue 1,269,900 (1,269,900) - - Bay Meadows Affordable Association 1,922,780 - 1,922,780 206,612 Child Care Facility Project Loans 727,789 (727,789) - - MP Downtown San Mateo Associates LP 6,022,500 (6,022,500) - - New Beginnings Supportive Housing Project 377,212 (377,212) - - Total Governmental Activities $ 56,391,364 $ (52,464,372) $ 3,926,992 $ 390,409 Business-Type Activities:

Town of Hillborough $ 40,870,846 $ 40,870,846 - $
Crystal Springs 20,867,613 20,867,613 -
Total Business-Type Activities $ 61,738,459 $ 61,738,459 - $ 234 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
83 Note 4 – Loans and Notes Receivable (Continued)
First-Time Homebuyer Loans
The City has had provided various loan programs for first 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, acting 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 homeowners or developers who agree to spend these funds in accordance with the City’s terms. The amounts for potential loan forgiveness represent the best estimate of the amount of loans receivable that may 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 interest is forgiven until the loan is fully forgiven in year 30. Payment of principal and interest is paid upon sale of property. Units are sold at market value, and at that time, the City also receives as payment a share of the appreciation based on the percentage of the City loan to original purchase price.

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 new eligible buyer at the restricted sales price. If the City does not exercise the option to purchase, the unit can be sold at fair market value to a non-eligible buyer. In this case, the principal, interest, and appreciation share payment is paid to the City. After 2007, the second loans were restructured to eliminate the interest rate and appreciation share in the event the unit is sold to non-eligible buyer.

Instead, “contingent interest” is paid to the City, which is determined by the difference between the restricted price and the actual sales price (market value).

Neighborhood Purchase Program – A second loan of up to 20% of the purchase price, or maximum of $60,000, accrues simple interest of 3% per year. This is an 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 provides a second loan of up to 20% of the purchase price, or maximum of $60,000. No interest and no payments are due for 10 years. Then payments are amortized at 4% for 25 years. Upon sale of the property or refinance, an appreciation share payment is due to the City.

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

Home Rehabilitation Loans
The City has administered various housing rehabilitation loan programs using Community Development Block Grant funds, former Redevelopment Agency Housing Set-Aside funds, and City Housing funds. Under these Programs, individuals with incomes below a certain level are eligible to receive low interest, variable term loans, secured by deeds of trust for rehabilitation work on their homes. The maximum loan limit is $85,000 for standard properties and $100,000 for historic properties. The loan repayments may be amortized over the life of the loans, deferred, or a combination of both.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
84 Note 4 – Loans and Notes Receivable (Continued)
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 former Redevelopment Agency made four loans, the proceeds of which were used to conduct substantial rehabilitation and residential conversion of the Darcy Building for low income households. The loans carry interest at rates that vary from 0% to 5% with a term of 30 years. If the property remains in the developer’s hands, two of the loans allow partial forgiveness beginning is year 30, with full forgiveness in year 40.

Edgewater Isle Senior Apartments
On June 30, 2000, the City and the 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 transfer of the property, whichever comes first.

Belmont Building
On June 30, 2000, the City and the former Redevelopment Agency made two loans, the proceeds 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 developer’s hands, beginning in year 2023, ten percent of the principal will be forgiven annually until year 2032, at which time the entire loan principal will have been forgiven.

St. Matthew Hotel
On June 30, 2000, the City and the former Redevelopment Agency 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, which bears simple interest at a rate of 8.75% compounded annually, and is due on December 30, 2028. In 2004, the loan was recast for $968,000 with 0% interest, a 40-year term and no prepayment penalty.

Rotary Floritas
The former Redevelopment Agency provided $3,000,000 for the construction of 50 senior rental units at Rotary Floritas on March 24, 2006. The interest rate is 3% for 55 years. Annual payments of principal and interest are based on the “available cash flow” from the borrower’s preceding fiscal year. 236 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
85 Note 4 – Loans and Notes Receivable (Continued)
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 years. At the same time, the City provided an additional $500,000 ($143,500 CDBG and $356,500 HOME) for the new project. These loans bear 3% interest, and annual payments are based on “available cash flow”. As long as the facility is operated as emergency and transitional housing, 1/30 of the principal and accrued interest annually until it fully forgiven in 30 years. 12 N. Idaho Street
In 1994, HAND, Inc., a non-profit organization, received loans of $100,000 from the former Redevelopment Agency and $10,436 from the City to assist in the purchase of a six-unit apartment building located at 12 N. Idaho Street to be used as an affordable housing complex. The Agency loan carries an interest rate of 10% and is for a period of 40 years.

The City loan carries no interest and is for a period of 15 years. Principal payments on both loans are deferred until the earlier of sale or transfer of the property or the maturity date. 200 S. Delaware Street
On October 6, 1999, the City and the former 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 Redevelopment 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 principal plus remaining accrued interest). The other original terms remained the same for another 25 years. 237 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
86 Note 4 – Loans and Notes Receivable (Continued)
MP San Mateo Transit Associates
In November 2006, the City and the former Redevelopment Agency entered into a loan agreement with the MidPeninsula Housing Coalition. The agreement includes three promissory notes in the amounts of $1,230,000 (City funds), $1,200,000 (Agency funds), and $2,870,000 (Agency funds), which bear 3% interest. The payment of principal and interest is due on the maturity date or the sale or transfer of the property except for a sale or transfer to an affiliate nonprofit public benefit corporation or to a limited partnership in which an affiliate is the general partner. The maturity date shall occur fifty-five (55) years from the date of the receipt of the final certificate of occupancy. Beginning with borrower’s first fiscal year following the first year after receipt of the 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 Infill Infrastructure Grant funds from the State of California in the amount of $3,854,240, which was passed on to the Mid-Peninsula Housing Coalition in the form of a deferred zero interest loan which is due at maturity, which is 55 years from receipt of the final certificate of occupancy.

MP Delaware Pacific Associates L.P.

In April 2012, the City and the Successor Agency entered into a loan agreement 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 after 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 paying for a special assessment for needed repairs at the complex. This agreement provides eligible owners of the affordable 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. 238 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
87 Note 4 – Loans and Notes Receivable (Continued)
Cal Home Loans
In June 2009, the City entered into a program agreement with the California Department of Housing and Community Development to receive $750,000 in grant funds from the CalHOME program for its Owner Occupancy Rehabilitation Program. These funds are used for home repair loans up to $60,000 for low and moderate income households at 3% interest, with payments deferred for 30 years. Loan repayments will go into a revolving loan fund to be used for future housing loans for owner occupied units.

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

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

Bay Meadows Affordable Housing
In December 2018, the City lent $2,000,000 to Bay Meadows Affordable Associates, LP for the construction of 68 family rental units. The interest rate is 3%. Annual payments 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 Resolution 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 number 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 applicants 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 funding. 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 Housing Asset 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 “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. 239 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
88 Note 4 – Loans and Notes Receivable (Continued)
New Beginnings Supportive Housing Project
In December 2024, the City used a portion of its annual Permanent Local Housing Allocation (“PLHA”), received in fiscal year 2023-24, an entitlement grant program administered by the State Department of Housing and Community Development (“HCD”), to support predevelopment of the New Beginnings supportive housing project at 831 Monte Diablo Avenue. Funds were provided in the form of a forgivable, zero-interest predevelopment loan to St. James African Methodist Episcopal Zion Church in the amount of $377,212. St. James will develop five affordable units of supportive housing for former foster youth between the ages of 18-24 (transitional age). This loan will allow the project to move forward with design and other predevelopment activities and will be forgiven upon completion of construction.

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 costs 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 costs of the sewage treatment plant are allocated based on predetermined factors.

The capital cost repayment agreement carries an interest rate of 1.91% with a term of 30 years. Payments will be in addition to the periodic charges for wastewater treatment services. As of June 30, 2025, the balance of the capital cost repayment agreement was $40,870,846.

Crystal Springs
In October 2024, the City entered into a capital cost repayment agreement with the Crystal Springs County Sanitation District (the “District”) and the County of San Mateo (the “County”) for the payment of the District and County’s percentage of project costs 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 costs of the sewage treatment plant are allocated based on predetermined factors. The capital cost repayment agreement carries an interest rate of 1.91% with a term of 30 years. Payments will be in addition to the periodic charges for wastewater treatment services. As of June 30, 2025, the balance of the capital cost repayment agreement was $20,867,613.

Note 5 – Interfund Transactions
Due From/To Other Funds – At June 30, 2025, the City had the following due from/to other funds:

Receivable Fund Payable Fund Amount Purpose
General Fund Community Development Block Grant Fund $ Overdrawn Cash 48,871 General Fund Traffic Impact Fee Special Revenue Fund 1,753,501 Overdrawn Cash Total $ 1,802,372
240 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
89 Note 5 – Interfund Transactions (Continued)
Transfers In/Out - During the year ended June 30, 2025, the City had the following transfers in/out:

Transfers In Transfers Out Amount Purpose
General Projects Capital Projects Fund General Fund $ 9,838,867 Capital projects General Projects Capital Projects Fund Solid Waste Special Revenue Fund 766,619 Capital projects General Projects Capital Projects Fund Construction Services Special Revenue Fund 518,394 Capital projects General Projects Capital Projects Fund Gas Tax Special Revenue Fund 218,314 Capital projects General Projects Capital Projects Fund Parks and Recreation Special Revenue Fund 1,784,621 Capital projects General Projects Capital Projects Fund Road Maintenance and Rehabilitation Special Revenue Fund 897,879 Capital projects General Projects Capital Projects Fund Landfill Bond Debt Service Fund Capital projects 51,140 General Projects Capital Projects Fund Vehicle and Equipment Replacement Internal Service Fund 1,619,429 Capital projects Subtotal 15,695,263
General Fund Construction Services Special Revenue Fund 788,000 Other purposes General Fund Gas Tax Special Revenue Fund 1,747,500 Other purposes Subtotal 2,535,500
Vehicle and Equipment Replacement Internal Service Fund General Fund 410,000 Cost allocation Comprehensive Liability Insurance Internal Service Fund Workers' Compensation Insurance Internal Service Fund Cost allocatio 2,000,000 n 2% Hotel Tax Debt Service Fund General Fund 350,000 Debt service General Obligation Bond Debt Service Fund General Fund 2,690,000 Debt service Total $ 23,680,763
Note 6 – Capital Assets
A. Governmental Activities
The summary of changes in governmental activities capital assets for the year ended June 30, 2025, is as follows:

Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated
Land 52,064,002 $ - $ - $ - $ 52,064,002 $
Construction in progress 30,412,141 33,442,579 (4,824,533) (14,036,422) 44,993,765 Total capital assets, not being depreciated 82,476,143 33,442,579 (4,824,533) (14,036,422) 97,057,767 Capital assets, being depreciated/amortized
Building and improvements 194,619,236 - - 63,707 194,682,943 Machinery and equipment 36,821,946 1,424,846 (567,875) 1,564,908 39,243,825 Infrastructure 612,631,402 - - 12,407,807 625,039,209
Leased assets - buildings and improvements 2,174,617 5,592,053 - - 7,766,670 Leased assets - machinery and equipment - 5,882,716 - - 5,882,716 Subscription assets 6,866,009 770,051 (1,398,847) - 6,237,213 Total capital assets, being depreciated/amortized 853,113,210 13,669,666 (1,966,722) 14,036,422 878,852,576 Accumulated depreciation/amortization:

Building and improvements (86,027,696) (5,346,642) - - (91,374,338) Machinery and equipment (27,598,489) (1,779,555) 548,684 - (28,829,360) Infrastructure (335,891,526) (14,922,009) - - (350,813,535) Leased asset - buildings and improvements (1,768,002) (492,405) - - (2,260,407) Leased assets - machinery and equipment - (311,083) - - (311,083) Subscription assets (1,769,371) (987,475) 508,036 - (2,248,810) Total accumulated depreciation/amortization (453,055,084) (23,839,169) 1,056,720 (475,837,533) - Total capital assets, being depreciated/amortized, net 400,058,126 (10,169,503) (910,002) 14,036,422 403,015,043 Total capital assets, net $ 482,534,269 $ 23,273,076 $ (5,734,535) $ 500,072,810 - $ 241 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
90 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 $ 885,175
Community development 265,424
Public safety 2,040,087
Public works 14,916,459
Parks and recreation 2,823,835
Library 1,596,668
Internal service funds 1,311,521
Total depreciation/amortization expense $ 23,839,169
B. Business-Type Activities
The summary of changes in business-type activities capital assets for the year ended June 30, 2025, is as follows:

Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated
Land $ 4,052,298 $ - $ - $ 4,052,298 - $
Construction in progress 609,665,541 59,323,500 (448,377,358) - 220,611,683 Total capital assets, not being depreciated 613,717,839 59,323,500 (448,377,358) - 224,663,981 Capital assets, being depreciated/amortized
Sewer treatment plant
and transmission lines 290,577,867 - - 448,080,226 738,658,093 Machinery and equipment 2,525,101 398,790 (14,222) 297,132 3,206,801 Leased assets - machinery and equipment 110,037 - - - 110,037 Subscription assets - 219,971 - - 219,971
Total capital assets, being depreciated/amortized 293,213,005 618,761 (14,222) 448,377,358 742,194,902 Accumulated depreciation/amortization:

Sewer treatment plant
and transmission lines (121,253,432) (4,938,134) - - (126,191,566) Machinery and equipment (1,362,106) (152,553) 14,222 - (1,500,437) Leased assets - machinery and equipment (71,219) (36,679) - - (107,898) Subscription assets - (8,555) - - (8,555)
Total accumulated depreciation/amortization (122,686,757) (5,135,921) 14,222 - (127,808,456) Total capital assets, being depreciated/amortized, net 170,526,248 (4,517,160) - 448,377,358 614,386,446 Total capital assets, net $ 784,244,087 $ 54,806,340 $ - $ 839,050,427 - $ Depreciation and amortization expense was charged to the business-type activities as follows:

Sewer $ 5,133,070
Storm 2,851
Total depreciation/amortization expense $ 5,135,921
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
91 Note 7 – Long-Term Liabilities
A. Summary
Annual Original
Final Interest Principal Issue Outstanding at
Maturity Rate Installments Amounts June 30, 2025
Governmental Activities
Direct Borrowing:

CEC Streetlight Loan 2030 1.00% $254,364 - $260,544 3,000,000 $ 1,277,099 $ PG&E - Energy Efficiency Retrofit Loans 2031 0.00% $351,219 3,356,274 1,812,608 Advance liability 2047 3.00% $335,000 - $2,530,000 45,765,000 40,145,000 Lease liability 2040 3.00% $306,083 - $1,007,017 13,643,963 11,067,585 Subscription liability 2033 1.71% - 3.14% $309,519 - $947,110 4,291,977 2,715,563 Public Borrowing:

General Obligation Bonds, Series 2013
(Library Improvement Project) 2031 3.00% - 4.00% $1,520,000 - $2,070,000 27,295,000 11,370,000 Lease Revenue Bonds, Series 2007A
(Public Safety Project) 2039 Variable rate $480,000 - $1,195,000 17,400,000 12,080,000 Revenue Refunding Bonds, Series 2018A
(Golf Course Project) 2030 2.25% - 5.00% $495,000 - $665,000 6,050,000 3,130,000 Total Governmental Activities 120,802,214 $ 83,597,855 $ 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 $ Clean Water State Revolving Fund Loans
(SRF) Loan - San Mateo 2055 0.80% $3,090,008-$3,893,275 104,301,613 $ 79,404,594 $ Public Borrowing:

Sewer Revenue Bonds, Series 2014 2045 3.00% - 5.00% $670,000 - $2,665,000 32,255,000 24,380,000 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 12,410,000 Total Business-Type Activities 682,480,973 $ 647,853,954 $ Fiduciary Funds
Public Borrowing:

Tax Allocation Refunding Bonds, Series 2015A 2033 4.00% - 5.00% $530,000 - $4,150,000 31,210,000 $ 28,090,000 $ Tax Allocation Refunding Bonds, Series 2017A 2026 2.00% - 5.00% $2,425,000 - $3,100,000 21,440,000 3,100,000 Total Successor Agency $ 31,190,000 52,650,000 $
243 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
92 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities
A summary of changes in the long-term liabilities for the year ended June 30, 2025, is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2024 Issued Retired June 30, 2025 One Year Than One Year Bonds payable:

General Obligation Refunding Bonds, Series 2013 13,030,000 $ $ (1,660,000) - $ $ 11,370,000 $ 1,720,000 $ 9,650,000 plus: unamortized bond premium - 955,750 (157,109) 798,641 - 798,641 Lease Revenue Bonds, Series 2007A 12,625,000 - (545,000) 12,080,000 580,000 11,500,000 Revenue Refunding Bonds, Series 2018A 3,680,000 - (550,000) 3,130,000 575,000 2,555,000 plus: unamortized bond premium - 239,355 (47,087) 192,268 - 192,268 Total bonds payable - 30,530,105 (2,959,196) 27,570,909 2,875,000 24,695,909 Advance payable to other government
Advance payable to other government 41,430,000 - (1,285,000) 40,145,000 1,340,000 38,805,000 plus: unamortized advance premium - 6,826,907 (286,444) 6,540,463 - 6,540,463 Total advance payable to other government 48,256,907 - (1,571,444) 46,685,463 1,340,000 45,345,463 Loans payable:

CEC Streetlight Loan 1,524,968 - (247,869) 1,277,099 250,354 1,026,745 PG&E - Energy Efficiency Retrofit Loans 2,163,827 - (351,219) 1,812,608 351,219 1,461,389 Total loans payable 3,688,795 - (599,088) 3,089,707 601,573 2,488,134 Lease liability 442,060 11,474,769 (849,244) 11,067,585 861,611 10,205,974 Subscription liability 3,650,644 770,051 (1,705,132) 2,715,563 730,238 1,985,325 Total $ 12,244,820 86,568,511 $ (7,684,104) $ 91,129,227 $ 6,408,422 $ 84,720,805 $ Classification
General Obligation Refunding Bonds, Series 2013
On March 21, 2013, the City issued $27,295,000 principal amount General Obligation Refunding Bonds (Library Improvement Project), Series 2013 (2013 Refunding Bonds). The proceeds of the 2013 Refunding Bonds were used to refund the 2000 and 2004A General Obligation Bonds. The 2000 and 2004A General Obligation Bonds were used to finance the construction, acquisition and improvement of a new main library and the improvement of the City’s branch libraries. The General Obligation Refunding Bonds mature annually each August 1 through 2030, with installments ranging from $1,520,000 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 $12,504,225. For the current year, principal and interest paid on the 2013 Refunding Bonds was $2,062,350 and ad valorem property tax net revenues were $1,699,475.

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

Year Ending
June 30, Principal Interest Total
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 2,005,000 92,175 2,097,175
2031 2,070,000 31,050 2,101,050
Total $ 1,134,225 11,370,000 $ 12,504,225 $
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
93 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 contributed to the construction of a new police administration facility with a total project cost of $58,500,000. Other sources of funding for this project included transient occupancy tax (hotel tax), redevelopment agency funds, sale of the existing police facility site, and General Fund contributions. The 2007A Variable Rate Bonds mature 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 Bonds 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 paid were $827,515, while 2% transient occupancy tax revenues (TOT) were $783,669, resulting in a net loss of $43,846. 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 remaining to be paid on the 2007A Lease Revenue Bonds is $12,080,000.

The annual principal requirements on these bonds are as follows:

Year Ending
June 30, Principal Interest* Total
2026 $ 580,000 $ 580,000 - $
2027 615,000 615,000 -
2028 655,000 655,000 -
2029 695,000 695,000 -
2030 735,000 735,000 -
2031-2035 4,365,000 4,365,000 -
2036-2039 4,435,000 4,435,000 -
Total $ 12,080,000 $ 12,080,000 - $
*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, 2025
94 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities (Continued)
Revenue Refunding Bonds, Series 2018A
On May 1, 2018, JPFA 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, which 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 Revenue Bonds mature through 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 JPFA.

The 2018A Revenue Bonds are subject to early redemption provisions.

Prior to fiscal year 2018-19, the City funded the lease payments to the JPFA from 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 JPFA 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 $669,100 and $3,458,094, respectively. The total principal and interest remaining to be paid on the bonds is $3,354,313.

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

Year Ending
June 30, Principal Interest Total
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 $ 224,313 3,130,000 $ 3,354,313 $
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 and 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, 2025, the City’s advance payable to other government balance was $40,145,000 with a remaining premium on advance balance of $6,540,463. Total principal and interest remaining to be paid on the advance from other government is $62,439,792.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
95 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
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 1,545,000 1,471,538 3,016,538
2031-2035 6,710,000 6,443,000 13,153,000
2036-2040 8,515,000 4,641,700 13,156,700
2041-2045 10,410,000 2,742,000 13,152,000
2046-2048 7,300,000 591,600 7,891,600
Total $ 40,145,000 $ 22,294,792 $ 62,439,792
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 this 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 loan is for a period of 15 years.

The annual debt service requirements for the CEC Streetlight Loan are as follows:

Year Ending
June 30, Principal Interest Total
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 $ 35,409 1,277,099 $ 1,312,508 $
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. 247 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
96 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities (Continued)
PG&E – Energy Efficiency Retrofit Loans (Continued)
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 loan has a 10 year term.

The annual debt service requirements for the Energy Efficiency Retrofit Loans are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 351,219 $ 351,219 - $
2027 351,219 351,219 -
2028 351,219 351,219 -
2029 351,219 351,219 -
2030 351,219 351,219 -
2031 56,513 - 56,513
Total $ 1,812,608 $ 1,812,608 - $
Lease Liability
The City has entered into leases for building space and equipment use. The terms of the agreements range from 3 to 16 years. The calculated interest rate used was between 0.46% to 2.95%. As of June 30, 2025, the capitalized right-to-use assets related to leases were $13,649,386 and the total lease liability was $11,067,585, of which $861,611 is reported as a current liability representing the amount due within the next fiscal year.

The annual debt service requirements for the lease liability are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 861,611 $ 170,105 $ 1,031,716
2027 864,398 232,428 1,096,826
2028 899,593 210,675 1,110,268
2029 873,844 188,775 1,062,619
2030 892,118 167,537 1,059,655
2031-2035 4,799,357 498,918 5,298,275
2036-2040 1,876,664 75,094 1,951,758
Total $ 11,067,585 $ 1,543,532 $ 12,611,117
Subscription Liability
The City has entered into subscription-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 0.00% and 3.14%, depending on the length of the SBITA and date of the agreement.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
97 Note 7 – Long-Term Liabilities (Continued)
B. Governmental Activities (Continued)
Subscription Liability (Continued)
As of June 30, 2025, the capitalized right-to-use assets related to SBITAs were $6,237,213 and the total subscription liability was $2,715,563, of which $730,238 is reported as a current liability representing the amount due within the next fiscal year. Out of the total $1,705,132 in retired SBITA liabilities, $824,780 was accounted for as the SBITA contract termination liability.

The annual debt service requirements for the subscription liability are as follows:

Year Ending
June 30, Principal Interest Total
2026 730,238 $ 48,724 $ 778,962 $
2027 491,184 33,534 524,718
2028 442,837 23,216 466,053
2029 299,143 14,265 313,408
2030 307,572 8,837 316,409
2031-2035 444,589 3,225 447,814
Total $ 2,715,563 $ 146,850 $ 2,847,364
C. Business-Type Activities
A summary of changes in the long-term liabilities of the business-type activities for the year ended June 30, 2025, is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2024 Issued Retired June 30, 2025 One Year Than One Year Bonds payable:

Sewer Revenue Bonds, Series 2014A $ 25,680,000 $ (1,300,000) - $ $ 24,380,000 $ 1,365,000 $ 23,015,000 plus: unamortized bond premium - 1,513,750 (75,688) 1,438,062 - 1,438,062 Wastewater Revenue Bonds, Series 2019 236,180,000 - - 236,180,000 2,520,000 233,660,000 plus: unamortized bond premium 38,976,242 (1,618,391) - 37,357,851 37,357,851 - Wastewater Revenue Refunding
Bonds, Series 2021A 13,070,000 (660,000) - 12,410,000 690,000 11,720,000 plus: unamortized bond premium - 3,146,203 (174,789) 2,971,414 - 2,971,414 Total bonds payable 318,566,195 (3,828,868) - 314,737,327 4,575,000 310,162,327 Notes payable:

Water Infrastructure Finance and
Innovation Act (WIFIA) Loan 295,479,360 - 295,479,360 - 3,042,797 292,436,563 Clean Water State Revolving Fund Loans
(SRF) Loan - San Mateo 79,404,594 - 79,404,594 - 79,404,594 - Total notes payable 295,479,360 79,404,594 374,883,954 - 3,042,797 371,841,157 Lease liability 37,968 (37,968) - - - -
Subscription liability 219,971 - (71,319) 148,652 71,466 77,186 Total $ 614,083,523 $ 79,624,565 $ (3,938,155) $ 689,769,933 $ 7,689,263 $ 682,080,670 Classification
249 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
98 Note 7 – Long-Term Liabilities (Continued)
C. Business-Type Activities (Continued)
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 Sewer Revenue Bonds, Series 2003, and finance various improvements to the City’s municipal sewer enterprise.

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 certain funds and accounts held under the Indenture. Total principal and interest remaining to be paid on the Bonds is $34,971,745.

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

Year Ending
June 30, Principal Interest Total
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 670,000 687,246 1,357,246
2031-2035 3,705,000 3,086,051 6,791,051
2036-2040 4,420,000 2,366,538 6,786,538
2041-2045 9,705,000 1,165,700 10,870,700
Total $ 24,380,000 $ 10,591,745 $ 34,971,745
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 $402,213,225.
250 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
99 Note 7 – Long-Term Liabilities (Continued)
C. Business-Type Activities (Continued)
The annual debt service requirements on the 2019 Wastewater Bonds are as follows:

Year Ending
June 30, Principal Interest Total
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 5,325,000 10,010,625 15,335,625
2031-2035 37,170,000 44,926,750 82,096,750
2036-2040 47,000,000 35,103,225 82,103,225
2041-2045 57,960,000 24,144,750 82,104,750
2046-2050 72,655,000 9,445,125 82,100,125
Total $ 236,180,000 $ 166,033,225 $ 402,213,225
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.

The Series 2021A Bonds mature annually each August 1 through 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, 2041, and bear interest at the rate of 1.55-5.00%. The issuance resulted in a bond premium of $3,670,571. The Series 2021A Bonds are payable solely from net revenues received by the City from the operation of the sewer enterprise and certain funds and accounts held under the Indenture. Total principal and interest remaining to be paid on the Bonds is $17,099,825.

The annual debt service requirements for the Series 2021A Bonds are as follows:

Year Ending
June 30, Principal Interest Total
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 530,000 397,300 927,300
2031-2035 3,100,000 1,548,500 4,648,500
2036-2040 3,950,000 731,850 4,681,850
2041-2042 1,830,000 59,975 1,889,975
Total $ 4,689,825 12,410,000 $ 17,099,825 $
251 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
100
Note 7 – Long-Term Liabilities (Continued)
C. Business-Type Activities (Continued)
Treatment of Revenue Bonds in Aggregate
The City has covenanted in the indenture, to the maximum extent permitted by law, to set rates and charges for the service and facilities of the Sewer Enterprise sufficient to provide net revenues each fiscal year equal to 120% of the aggregate annual amount of principal and interest due on all parity obligations for such fiscal year and sufficient to provide net revenues each fiscal year equal to at least 100% of the aggregate amount of principal and interest due on all parity obligations and subordinate obligations for such fiscal year.

There are four revenue bonds/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 $2,292,815, on the 2019 Wastewater bonds was $10,947,250, and on the 2021 Wastewater bonds was $1,237,050. Sewer services net revenues were $51,035,078.

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%. Foster City/EMID’s WWTP loan bears interest at 1.14%.

Interest payments and revenue bond retirements are serviced by lease payments made by the City and Foster City/EMID.

On February 9, 2024, 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 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 February 1 and August 1, commencing August 1, 2024. The bonds mature through August 1, 2055, and bear interest at the rate of 1.31%. The total principal and interest remaining to be paid on the bonds at June 30, 2025 was $366,855,156.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
101
Note 7 – Long-Term Liabilities (Continued)
C. Business-Type Activities (Continued)
Water Infrastructure Finance and Innovation Act Loan (Continued) The annual debt service requirements for the WIFIA loans outstanding at June 30, 2025 are as follows:

Year Ending
June 30, Principal Interest Total
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 4,861,913 3,664,531 8,526,444
2031-2035 31,485,316 17,191,147 48,676,463
2036-2040 44,040,337 14,709,865 58,750,202
2041-2045 57,451,490 11,372,451 68,823,941
2046-2050 71,777,156 7,120,523 78,897,679
2051-2055 66,390,463 2,080,648 68,471,111
2056 4,602,821 30,212 4,633,033
Total $ 71,375,796 295,479,360 $ 366,855,156 $
Clean Water State Revolving Fund Loans
In 2025, San Mateo-Foster City Public Financing Authority (the “Authority”) entered into the Clean Water State Revolving Fund (SRF) loan agreements with the State Water Resources Control Board for capital improvement projects of the wastewater treatment plant (WWTP), jointly owned by San Mateo and Foster City/EMID, up to $104,301,613 (San Mateo) and $33,154,387 (Foster City/EMID), respectively. As of 2025, the PFA had drawn a total of $104,644,958, with $79,404,594 allocated to San Mateo and $25,240,364 to Foster City/EMID. Interest payments and revenue bond retirements are serviced by loans payments made by the City San Mateo and Foster City/EMID. The interest rate used is 0.80%. The total principal and interest remaining to be paid on the bonds for the City’s portions at June 30, 2025 was $89,647,985.

The annual debt service requirements for the SRF loans outstanding at June 30, 2025 are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ - $ - $ -
2027 2,356,645 636,379 2,993,024
2028 2,375,499 617,525 2,993,024
2029 2,394,503 598,521 2,993,024
2030 2,413,659 579,365 2,993,024
2031-2035 12,361,040 2,604,080 14,965,120
2036-2040 12,863,456 2,101,664 14,965,120
2041-2045 13,386,293 1,578,827 14,965,120
2046-2050 13,930,381 1,034,740 14,965,121
2051-2055 14,496,584 468,536 14,965,120
2056 2,826,534 23,754 2,850,288
Total $ 79,404,594 $ 10,243,391 $ 89,647,985
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
102
Note 7 – Long-Term Liabilities (Continued)
C. Business-Type Activities (Continued)
Lease Liability
The City has entered into a lease for equipment use. The terms of the agreements was for 3 years. The calculated interest rate based on the length of the lease was 0.46 percent. As of June 30, 2025, the capitalized right-to-use assets related to leases were $110,037 and the total lease liability has no outstanding balance.

Subscription Liability
The City has entered into subscription-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, with initial non-cancellable terms is 3 years. The calculated interest rate used is 2.72%.

As of June 30, 2025, the capitalized right-to-use assets related to SBITAs were $219,971 and the total subscription liability was $148,652, of which $71,466 is reported as a current liability representing the amount due within the next fiscal year.

The annual debt service requirements for the subscription liability are as follows:

Year Ending
June 30, Principal Interest Total
2026 71,466 $ 4,048 $ 75,514 $
2027 77,186 2,102 79,288
Total $ 148,652 $ 21,199 $ 154,802
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, 2025, is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2024 Issued Retired June 30, 2025 One Year Than One Year Fiduciary Activities:

Bonds payable:

Tax Allocation Refunding Bonds, Series 2015A 29,415,000 $ - $ (1,325,000) $ 28,090,000 $ $ 1,375,000 $ 26,715,000 plus: unamortized bond premium - 1,458,727 (182,340) 1,276,387 1,276,387 - Tax Allocation Refunding Bonds, Series 2017A 6,045,000 (2,945,000) - 3,100,000 3,100,000 - plus: unamortized bond premium - 452,265 (417,478) 34,787 - 34,787 Total bonds payable 37,370,992 - (4,869,818) 32,501,174 4,475,000 28,026,174 Total $ 37,370,992 $ (4,869,818) - $ $ 32,501,174 $ 4,475,000 $ 28,026,174 Classification
254 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
103
Note 7 – Long-Term Liabilities (Continued)
D. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of San Mateo (Continued)
Tax Allocation Refunding Bonds, Series 2015A
On August 5, 2015, the Successor Agency of the Redevelopment 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 $33,873,625.

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

Year Ending
June 30, Principal Interest Total
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 3,580,000 641,000 4,221,000
2031-2033 11,860,000 805,250 12,665,250
Total $ 5,783,625 28,090,000 $ 33,873,625 $
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, 2026, with installments ranging from $2,425,000 to $3,100,000. The interest on the 2017A Refunding Bonds is payable semi-annually on each February 1 and August 1, with coupon rates of 5.00%.

The 2017A Refunding Bonds are subject to early redemption provisions. Total principal and interest remaining to be paid on the Bonds is $3,177,500.

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

Year Ending
June 30, Principal Interest Total
2026 3,100,000 $ 77,500 $ 3,177,500 $
Total $ 77,500 3,100,000 $ 3,177,500 $
255 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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)
Pledged Revenues
Tax Allocation Bonds held by the Successor Agency of the Redevelopment Agency of the City of San Mateo are secured by property tax revenues. For the current year, principal and interest paid on the Series 2015A and 2017A, Tax Allocation Bonds were $2,700,750 and $3,173,625 respectively and Redevelopment Agency Property Tax Trust Fund distributions were $5,999,251.

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 Meadows 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 (MelloRoos 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, 2025 are as follows:

Outstanding
Original Balance
Amount June 30, 2025
CFD 2008-1, Series Special Tax Bonds Refunding Bonds Series 2022 72,345,000 $ 70,210,000 $ Note 9 – Compensated Absences
A. Governmental Activities
A summary of changes in the compensated absences balances for the governmental activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024, as Increase/ Balance Due within Due in More Restated Decrease June 30, 2025 One Year Than One Year
Compensated absences 12,990,333 $ $ 347,943 $ 13,338,276 $ 1,467,210 $ 11,871,066 Classification
256 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
105
Note 9 – Compensated Absences (Continued)
B. Business-Type Activities
A summary of changes in the compensated absences balances for the business-type activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024, as Increase/ Balance Due within Due in More Restated Decrease June 30, 2025 One Year Than One Year
Compensated absences 1,415,210 $ (219,659) $ 1,195,551 $ $ 131,511 $ 1,064,040 Classification
Note 10 – Landfill Closure
The City is responsible for closing the East Third Avenue Waste Disposal and Landfill site in accordance with the California Code of Regulations under the jurisdiction of the California Integrated Waste Management Board. In fiscal year 1992, the City developed a Closure Plan that in management’s view will meet all regulatory requirements. As stated in the California Code of Regulations, Division 2 Title 27 Article 2 Section 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.

A summary of changes in the Landfill Post-Closure Costs Payable in the Government-Wide Financial Statements for the year ended June 20, 2025 is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Landfill closure and
post-closure costs payable 1,728,952 $ 184,340 $ (115,264) $ 1,798,028 $ 119,689 $ 1,678,339 $ Classification
257 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 $ 2,609,487 9,551,532 $ 12,161,019 $ CalPERS Safety - 18,837,252 18,837,252
Total pension contribution made after measurement date 2,609,487 28,388,784 30,998,271 Projected earnings on pension plan investments in excess of actual earnings:

CalPERS Miscellaneous 777,694 2,846,602 3,624,296
CalPERS Safety - 4,490,540 4,490,540
Total projected earnings on pension plan investments in excess of actual earnings 7,337,142 777,694 8,114,836
Difference between expected and actual experience
CalPERS Miscellaneous 386,066 1,413,124 1,799,190
CalPERS Safety - 1,238,971 1,238,971
Total difference between expected and actual experience 2,652,095 386,066 3,038,161 Total deferred outflows of resources
CalPERS Miscellaneous 13,811,258 3,773,247 17,584,505
CalPERS Safety 24,566,763 24,566,763 -
Total deferred outflows of resources $ 38,378,021 $ 3,773,247 $ 42,151,268 Net pension liability:

CalPERS Miscellaneous $ 19,391,597 70,979,259 $ 90,370,856 $ CalPERS Safety - 184,703,423 184,703,423
Total net pension liability $ 19,391,597 255,682,682 $ 275,074,279 $ Pension expenses:

CalPERS Miscellaneous $ 3,076,370 11,260,470 $ 14,336,840 $ CalPERS Safety - 19,201,832 19,201,832
Total net pension expenses $ 3,076,370 30,462,302 $ 33,538,672 $ 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. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
107
Note 11 – Pension Plans (Continued)
B. General Information about Pension (Continued)
Employees Covered
At June 30, 2024, 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 adjustments, and death benefits to plan members and beneficiaries. Classic CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit 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% 3.0% Required employee contribution rates for Classic members 7.00% 9.00% Required employer contribution rates 9.44% 20.38%
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 classic members. PEPRA miscellaneous members will be enrolled in a 2% at 62 plan and PEPRA safety members will be enrolled in a 2.7% at 57 plan. PEPRA members will be required to pay half the normal cost of their plans.
259 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year (normal cost), with additional amount to finance any unfunded accrued liability (UAL). The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2024 (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 27.76 percent of annual payroll for the Miscellaneous Plan and 91.35 percent of annual payroll for the Safety Plan. Of note, the pension liability for the service years of former City employees that transferred to the San Mateo Consolidated Fire Department remains with the City, thus the UAL as a percentage of payroll is higher, as the UAL is relative to the remaining Safety Plan members (Police Department employees). As of June 30, 2025, 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, 2025, contributions made to the plans were follows:

Miscellaneous Plan Safety Plan
Contributions - employer 12,161,019 $ 18,837,252 $
Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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, 2024 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality 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. 260 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, both short-term and long-term market return expectations as well as the expected pension 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 shortterm 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 expected 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 would be different from the actuarially assumed discount rate.

Based on the testing, none of the tested plans run out of assets. Therefore, the current 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.
261 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 $ 133,554,734 $ 90,370,856 $ 54,601,826 Safety Plan $ 249,669,738 $ 184,703,423 $ 131,335,228
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
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2023 (Valuation Date) $ 332,493,990 $ 236,692,324 $ 95,801,666 Changes in the year:

Service cost 6,168,273 - 6,168,273
Interest on the total pension liabilities 22,611,449 - 22,611,449 Changes in benefit terms - - -
Differences between expected and actual experience 1,704,397 - 1,704,397 Benefit payments, including refunds of members contributions (19,160,708) (19,160,708) - Contributions - employer 10,792,551 - (10,792,551)
Contributions - employee - 2,678,257 (2,678,257)
Net investment income - 22,636,718 (22,636,718)
Administrative expenses - (192,597) 192,597
Net changes 11,323,411 16,754,221 (5,430,810)
Balance at June 30, 2024 (Measurement Date) 343,817,401 $ 253,446,545 $ 90,370,856 $ Miscellaneous Plan
Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2023 (Valuation Date) $ 485,920,883 $ 294,234,877 $ 191,686,006 Changes in the year:

Service cost 5,287,654 - 5,287,654
Interest on the total pension liabilities 32,936,050 - 32,936,050 Changes in benefit terms - - -
Differences between expected and actual experience 2,246,725 - 2,246,725 Benefit payments, including refunds of members contributions (26,954,756) (26,954,756) - Contributions - employer 17,313,207 - (17,313,207)
Contributions - employee - 2,162,214 (2,162,214)
Net investment income - 28,217,011 (28,217,011)
Administrative expenses - (239,420) 239,420
Net changes 13,515,673 20,498,256 (6,982,583)
Balance at June 30, 2024 (Measurement Date) 499,436,556 $ 314,733,133 $ 184,703,423 $ Safety Plan
262 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025, the City recognized pension expense in the amount of $14,336,840 and $19,201,832 for the miscellaneous and safety plans, respectively.

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service 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 Service Lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. For the Miscellaneous Plan, the EARSL for the Miscellaneous Plan for the 2023-24 measurement period is 2.6 years, which was obtained by dividing the total service years of 3,929 (the sum of remaining service lifetimes of the active employees) by 1,488 (the total number of participants: active, inactive, and retired). For the Safety Plan, the EARSL for the 2023- 24 measurement period is 2.0 years, which was obtained by dividing the total service years of 1,389 (the sum of remaining service lifetimes of the active employees) by 698 (the total number of participants: active, inactive, and retired).

At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date $ 12,161,019 $ -
Difference between projected and actual
earning on pension plan investments 3,624,296 -
Differences between expected and actual experience 1,799,190 - Total $ - 17,584,505 $
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date $ 18,837,252 $ -
Difference between projected and actual
earning on pension plan investments 4,490,540 -
Differences between expected and actual experience 1,238,971 - Total $ - 24,566,763 $
Miscellaneous Plan
Safety Plan
263 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 $ 30,998,271 $ -
Difference between projected and actual
earning on pension plan investments 8,114,836 -
Differences between expected and actual experience 3,038,161 - Total $ 42,151,268 $ -
Total
For the Miscellaneous and Safety Plans,$12,161,019 and $18,837,252, 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, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year
Ended June 30, Miscellaneous Plan Safety Plan Total
2026 $ 1,146,669 $ 807,165 $ 1,953,834
2027 6,589,536 7,851,558 14,441,094
2028 (1,009,945) (1,291,562) (2,301,507)
2029 (1,302,774) (1,637,650) (2,940,424)
2030 - - -
Thereafter - - -
$ 5,423,486 $ 5,729,511 $ 11,152,997
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 ended June 30, 2025 amounted to $5,536,331 of which the City paid $2,768,166.

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 covered under an alternative savings plan, which requires these employees and the City to each contribute 3.75% of the employees’ pay for a total of 7.50%.
264 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
113
Note 12 – Other Postemployment Benefits
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

OPEB contribution made after measurement date $ 1,371,272 $ 191,451 $ 1,562,723 Net difference between projected and actual
earnings of OPEB Plan investments 21,765 3,039 24,804
Difference between expected and actual experience 2,848,655 397,717 3,246,372 Total deferred outflows of resources $ 4,241,692 $ 592,207 $ 4,833,899 Net OPEB Liability $ 9,067,185 $ 1,294,795 $ 10,361,980 Deferred inflows of resources:

Difference between expected and actual experience $ 186,034 $ 22,155 $ 208,189 Change in assumptions 1,256,829 149,681 1,406,510
Total deferred inflows of resources $ 1,442,863 $ 171,836 $ 1,614,699 OPEB Expense $ 774,923 $ 211,737 $ 986,660
B. General Information about OPEB
Plan Description
The City administers a single-employer defined benefit 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 medical insurance premiums paid to CalPERS. This same benefit may continue to a surviving spouse depending on the retirement plan election. As of June 30, 2024, 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 the Plan through California Employers’ Retiree Benefit Trust (CERBT) by contributing the City’s Actuarially Determined Contribution (ADC) every year. For the reporting period 2024-25, the City contributed $1,562,723.
265 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2024, 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, 2024, 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 6.30%
Mortality, Retirement, Disability, Termination
Mortality Improvement
Medical Trend 6.00% for 2026 decreasing to 3.90% in 2075 CalPERS 2021 Experience Study
MacLeod Watts Scale 2022
The actuarial assumptions used in the June 30, 2024 valuation were based on the results of an actuarial experience study for the period June 30, 2023 through June 30, 2024.

The long-term expected rate of return on OPEB plan investments 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 combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Target
Allocation
Long-Term Expected
Rate of Return
Global Equity 49.00% 4.70%
Fixed Income 23.00% 2.60%
Treasury Inflation Protected Securities 5.00% 1.40%
Commodities 3.00% 2.00%
Glocal Real Estate (REITs) 20.00% 4.00%
100.00%
Long-term assumed rate of inflation 2.500%
Long-term expected rate of return 6.550%
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 increased from 6.10 percent to 6.30 percent for the measurement period ended June 30, 2024.

Discount Rate
The discount rate used to measure the total OPEB liability was 6.30 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
Liability Net Position Liability
Balance at June 30, 2023 (Valuation Date) $ 20,480,895 $ 9,591,280 $ 10,889,615 Changes Recognized for the Measurement Period:

Service Cost 539,452 - 539,452
Interest on the total OPEB liability 1,249,277 - 1,249,277 Difference between expected and actual experience 438,959 438,959 Changes in assumptions (463,862) - (463,862)
Contribution from the employer 1,237,000 - (1,237,000)
Net investment income - 1,057,611 (1,057,611)
Administrative expenses - (3,150) 3,150
Benefit payments (1,080,787) (1,080,787) -
Net changes during July 1, 2023 to June 30, 2024 683,039 1,210,674 (527,635) Balance at June 30, 2024 (Measurement Date) $ 21,163,934 $ 10,801,954 $ 10,361,980 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $986,660. At June 30, 2025, 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 1,562,723 $ - $ Differences between expected and actual experience 3,246,372 (208,189) Changes in assumptions - (1,406,510)
Net difference between projected and actual
earnings of OPEB Plan investments 24,804 -
$ 4,833,899 $ (1,614,699)
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2024, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.

For the OPEB Plan, $1,562,723 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, 2026. 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
2026 $ 225,818
2027 574,440
2028 279,476
2029 305,264
2030 274,044
Thereafter (2,565)
Total $ 1,656,477
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, 2024:

Discount Rate -1% Current Discount Rate Discount Rate +1% (5.30%) (6.30%) (7.30%)
$ 12,858,265 $ 10,361,980 $ 8,275,317
Plan's Net OPEB Liability
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, 2024:
1% Decrease
(5.00% - 2.90%)
Current Healthcare
Trend Rate
(6.00% - 3.90%)
1% Increase
(7.00% to 4.90%)
$ 10,361,980 8,049,391 $ 13,196,957 $
Plan's Net OPEB Liability
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City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 loss 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 Liability Estimates Payments End One Year One Year
Workers' Compensation
2025 $ 13,858,000 $ 598,358 $ (1,266,358) $ 13,190,000 $ 2,504,000 $ 10,686,000 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 Dental
2025 $ 778,223 - $ $ (778,223) $ - $ - $ -
2024 775,609 - (775,609) - - -
2023 786,503 - (786,503) - - -
General Liability
2025 $ 4,040,000 $ 1,437,721 $ (132,721) $ 5,345,000 $ 1,494,000 $ 3,851,000 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 Total
2025 $ 17,898,000 $ 2,814,302 $ (2,177,302) $ 18,535,000 $ 3,998,000 $ 14,537,000 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 Note 14 – Joint Ventures
City of San Mateo and Estero Municipal Improvement District The City and the Estero Municipal Improvement District (Estero), entered into a “Joint Exercise of Powers Agreement” in 1974 to construct, maintain, and operate a joint use wastewater treatment plant facility (Facility). The City and Estero jointly use and own the Facility. During the original construction phase, the City served as the lead agency. Currently, the day-to-day operations and maintenance of the treatment plant are managed by the City. Both parties continue to make capital contributions and pay for operational and maintenance costs. During the fiscal year ended June 30, 2025, the City paid $29,933,797 for operations and maintenance of the wastewater treatment plant facility. 269 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 semiannually 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 received 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 $786,168,206.

City of San Mateo, City of Belmont/Belmont Fire Protection 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 formed 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 investment 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, 2025, the City has an investment in JPA equity of $10,177,664. Every year the City adjusts the investment based on the City’s proportion of financial activity at SMC Fire (60%). Audited financial statements of SMC Fire are available from City of San Mateo, 330 West 20th Avenue, San Mateo, CA 94403. 270 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
119
Note 14 – Joint Ventures (Continued)
City of San Mateo, City of Belmont/Belmont Fire Protection District, and City of Foster City/Estero Municipal Improvement District (Continued)
The condensed audited financial information of the JPA as of June 30, 2025 is as follows:

Total assets and deferred outflows $ 39,905,565
Total liabilities and deferred inflows $ 22,942,791
Total net position $ 16,962,774
Expenses $ 57,409,177
Program revenues $ 54,682,114
General revenues $ 1,199,825
Change in net position $ (1,527,238)
Note 15 – Other Required Disclosures
A. Deficit Fund Balances/Net Position
The City’s governmental activities had an unrestricted net position (deficit) of $(65,191,059) as of June 30, 2025.

This is mainly due to reporting of net pension liability of $(255,682,682) as required under GASB Statement No. 68 (Note 11) and reporting of net OPEB liability of $(9,067,185) as required under GASB Statement No. 75 (Note 12).

At June 30, 2025, 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
Traffic Impact Fee Special Revenue Fund Governmental Fund $ 1,753,501 Comprehensive Liability Insurance Fund Internal Service Fund 2,638,507 Fleet and Building Maintenance Fund Internal Service Fund 53,259 Successor Agency to RDA Merged Area Fund Fiduciary Fund 33,147,002 The Traffic Impact Fee Special Revenue Fund deficit is expected be eliminated by future revenues. 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. 271 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
120
Note 15 – Other Required Disclosures (Continued)
B. Expenditures Exceeding Appropriations
For the year ended June 30, 2025, expenditures exceeded appropriations in the following funds by function:

Excess Expenditures
Fund Function over Appropriations
General Fund Non-departmental 540,270 $
General Fund Debt service: Interest and fiscal charges 15,646 HOME Special Revenue Fund Community development 17,547
Solid Waste Special Revenue Fund General government: City Manager 795 Solid Waste Special Revenue Fund Public works 116,466
Solid Waste Special Revenue Fund Debt service: Principal 23,773 Solid Waste Special Revenue Fund Debt service: Interest and fiscal charges 200 Construction Services Fund General government: City Attorney 60,030 Construction Services Fund Public works 116,446
Landfill Bonds Debt Service Fund Public works 27,155
General Obligation Bonds Debt Service Fund Non-departmental 1,285 General Obligation Bonds Debt Service Fund Debt service: Interest and fiscal charges 749,400 2% Hotel Tax Capital Projects Fund Non-departmental 569 Note 16 – Fund Balance Classification
The City classifies fund balances, as shown on the Balance Sheet – Governmental Funds, as follows as of June 30, 2025:

General Non-major
General Capital Projects Governmental
Fund Fund Funds Total
Nonspendable
Prepaid items and inventories $ 284,638 $ - $ 3,502 $ 288,140 Total nonspendable 284,638 - 3,502 288,140
Restricted
Advance planning - 6,510,440 - 6,510,440
Construction services - 23,695,672 - 23,695,672
Debt service - 575,000 7,847,573 8,422,573
Housing - 899,999 11,296,240 12,196,239
Infrastructure maintenance 9,779,949 - - 9,779,949
Landfill post-closure maintenance - - 4,496,945 4,496,945 Capital projects 6,739,375 - 18,708,426 25,447,801
Public safety - 626,480 626,480
Public streets and related facilities 15,371,392 - 12,770,541 28,141,933 Solid waste and landfill - - 18,989,116 18,989,116
Total restricted 32,790,715 575,000 104,941,433 138,307,148 Assigned
Capital projects 10,494,686 21,908,617 32,403,303 -
Facilities Maintenance - 547,245 - 547,245
General Government 705,593 - - 705,593
Total assigned 21,908,617 11,747,524 33,656,141 -
Unassigned (deficit) 106,931,699 (1,753,501) - 105,178,198 Total fund balances $ 119,538,861 $ 54,699,332 $ 103,191,434 $ 277,429,627 272 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
121
Note 17 – Net Investment in Capital Assets
Net Investment in Capital Assets at June 30, 2025, consisted of the following:

Governmental Sewer Storm
Activities Fund Fund
Net investment in capital assets:

Capital assets, nondepreciable $ 97,057,767 $ 224,599,716 $ 64,265 Capital assets, depreciable/amortizable, net 403,015,043 614,315,974 70,472 Unspent bond proceeds - Restricted cash and investments 3,008,208 30,534,830 - Deferred loss/(gain) on refunding 576,942 (15,624,392) - Capital-related liabilities:

Retention payable (5,123,396) - -
General Obligation Refunding Bonds, Series 2013 (12,168,641) - - Lease Revenue Bonds, Series 2007A (12,080,000) - -
Revenue Refunding Bonds, Series 2018A (3,322,268) - -
Advance payable (46,685,463) - -
CEC Streetlight Loan (1,277,099) - -
PG&E - Energy Efficiency Retrofit Loans (1,812,608) - - Lease liability (11,067,585) - -
Subscription liability (2,715,563) (99,102) (49,551)
Sewer Revenue Bonds, Series 2014 (25,818,062) - -
Wastewater Revenue Bonds, Series 2019 (273,537,851) - - Wastewater Revenue Refunding Bonds, Series 2021A (15,381,414) - - Water Infrastructure Finance and Innovation Act (WIFIA) Loan (295,479,360) - - Clean Water State Revolving Fund Loans (SRF) Loan - San Mateo (79,404,594) - - Total net investment in capital assets $ 407,405,337 $ 243,510,339 $ 85,186 Business-Type Activities
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 Redevelopment Agency within the reporting entity as a blended component unit. The Bill provided that upon dissolution of a redevelopment agency, either the City or another unit of local government agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 9, 2012, the City Council elected to become the Successor Agency for the former Redevelopment agency in accordance with the Bill as part of City Resolution No. 2 (2012).

After enactment of the law, which occurred on June 28, 2011, 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 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 accordance with the Bill, the State Controller’s Office (SCO) of the State of California reviewed the propriety of any transfers of assets between the San Mateo Redevelopment Agency (RDA) and the City that occurred after January 1, 2011. On October 23, 2013, the SCO issued a report stating that there were no identified unallowable transfers of assets that occurred during the review period between the RDA, the City, and/or any other public agencies. 273 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
122
Note 18 – Successor Agency Private Purpose Trust For Assets of Former Redevelopment (Continued) 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 Allocation Bonds, Series 2005A and Series 2007A, to be used to reimburse the City of San Mateo for construction costs of Fire Station 24 in accordance with the Cooperation Agreement between the City and the Successor Agency. Construction of Fire Station 24 was a use of the bond proceeds that is consistent with the stated purposes of the original bond covenants, and these bonds proceeds were utilized in this manner during fiscal year 2013-14. Once a Finding of Completion is issued by the DOF, State law (AB 1484) requires that successor agencies prepare a Long- Range Property Management Plan (LRPMP) for the disposition and use of the remaining assets of the former San Mateo Redevelopment Agency The Successor Agency submitted the required LRPMP, as amended and approved by the Oversight Board, to the DOF on October 17, 2013. The LRPMP addressed the disposition of five properties that were under title with the Successor Agency. The Successor Agency received a formal response from the DOF on April 28, 2014, rejecting the LRPMP as submitted. The letter outlined that public parking was not considered a governmental use by the State and as a result, the City needed to examine other available disposition options for several other remaining properties. As required, the Successor Agency submitted to the DOF on October 1, 2014, a revised LRPMP that was approved by the Oversight Board. In February 2015, the revised LRPMP was approved by the DOF after the Oversight Board approval. The actual land titles transferred to the City from the Successor Agency for the former San Mateo Redevelopment Agency in July 2015. The outstanding enforceable obligations currently only include amounts owed to holders of the Successor Agency of Redevelopment Agency Tax Allocation Refunding Bonds Series 2015A, Successor Agency of Redevelopment Agency Tax Allocation Refunding Bonds Series 2015B, and the Successor Agency of Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A.

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

Note 19 ‒ Adjustments and Restatements of Beginning Balances During the current year, the City implemented GASB Statement No. 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separation of employment, the City now recognizes an estimated amount of sick leave earned as of year-end that will be used by employees as time off in future years as part of the liability for compensated absences. The effects of the change in accounting principle are summarized below in the “Restatement – GASB 101 implementation” column in the following table:

June 30, 2024,
As Previously
Reported
Restatement -
GASB 101
implementation
June 30, 2024,
As Restated
Government-wide
Governmental activities 470,205,224 $ (4,711,788) $ 465,493,436 $ Business-type activities 390,557,355 (314,090) 390,243,265 Total government-wide $ 860,762,579 $ (5,025,878) $ 855,736,701 Proprietary funds
Enterprise funds
Major funds:

Sewer Fund $ 390,557,355 $ (314,090) $ 390,243,265
Total enterprise funds $ 390,557,355 $ (314,090) $ 390,243,265 274 of 1110
City of San Mateo
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
123
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 Participation in the aggregate of $10,250,000 for the benefit of San Mateo Community Hospital (Hospital), a California nonprofit public benefit corporation. The Hospital is not included in the City’s reporting entity. The City is obligated to make the purchase payments only from and to the extent that it receives revenue from the Hospital. They are not secured by any pledge of taxes or other revenues of the City. In addition, the purchase payments are insured by the Office of Statewide Health Planning and Development of the State of California. As of June 30, 2025, 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, 2025.

Encumbrances related to capital 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, 2025:

Remaining
Commitment
Clean Water Program $ 12,908,978
Sanitary Sewer Rehabilitation and Improvement Project 42,821,918 Streetscape Improvements 9,506,604
Miscellaneous Projects 13,555,034
Total 78,792,534 $
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REQUIRED SUPPLEMENTARY INFORMATION
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Required Supplementary Information (Unaudited)
Budgetary Information
For the Year Ended June 30, 2025
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 prepared 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 procedures. The two-year business plan process requires that each department submit two one-year expenditure plans and revenue estimates to be provided to the City Council for approval. Only the first year of the two-year 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 business plan, the focus in year one is on the operating budget, while the focus on year two is the City’s CIP.

In any budget cycle, to remain adaptable to changing economic and or operational conditions, the City may choose to develop a one-year plan instead of a two-year business plan. As a result of the immediate and severe financial impact of COVID-19, the City shifted to a one-year plan. With pandemic-related recession experience under its belt, the City shifted back to the two-year business plan for 2024-26.

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 Project 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, 2025
128
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes $ 84,000,000 $ 84,000,000 $ 83,534,637 $ (465,363) Sales taxes 30,120,000 27,920,000 27,118,537 (801,463)
Other taxes 23,150,000 28,650,000 32,625,541 3,975,541
Licenses, building and other permits 80,000 80,000 99,371 19,371 Fines, forfeitures and penalties 1,939,000 1,939,000 2,199,413 260,413 Intergovernmental 3,368,551 3,563,551 4,800,016 1,236,465 Charges for Services 13,813,843 13,613,843 15,191,614 1,577,771 Investment income 4,200,000 5,200,000 6,601,231 1,401,231 Parking Meter and Lease Revenue 3,540,000 3,540,000 3,236,263 (303,737) Other revenues 3,961,094 3,961,094 3,687,453 (273,641)
Total revenues 168,172,488 172,467,488 179,094,076 6,626,588 EXPENDITURES:

Current:

General government:

City Council 456,520 456,520 376,910 79,610
City Manager 2,845,299 2,852,799 2,596,915 255,884
City Clerk 1,150,862 1,290,362 1,145,043 145,319
City Attorney 1,332,870 1,337,870 1,157,108 180,762
Finance 4,354,554 4,380,774 4,290,342 90,432
Information technology 5,050,497 4,523,975 4,356,356 167,619 Human Resources 2,591,334 2,610,898 2,334,340 276,558
Community development 2,271,225 2,743,076 2,478,828 264,248 Public safety:

Police 63,296,916 62,819,917 62,095,869 724,048
Fire 28,747,664 28,747,664 28,747,664 -
Public works 11,718,422 12,062,423 10,892,157 1,170,266 Parks and recreation 22,425,443 22,851,145 22,133,257 717,888 Library 9,761,164 9,776,164 9,258,253 517,911
Non-departmental 11,316,372 11,316,372 11,856,642 (540,270) Capital outlay 202,665 10,092,385 9,956,613 135,772
Debt service:

Principal 1,149,088 2,612,396 2,612,396 -
Interest and fiscal charges 133,733 255,471 271,117 (15,646) Total expenditures 168,804,628 180,730,211 176,559,810 4,170,401

REVENUES OVER
(UNDER) EXPENDITURES (632,140) (8,262,723) 2,534,266 10,796,989 Budgeted Amounts
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Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – General Fund (Continued) For the Year Ended June 30, 2025
129
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - 5,901 5,901
Inception of lease liability - 9,097,993 9,097,993 -
Inception of subscription liability - 696,727 696,727 - Transfers in 2,257,500 2,535,500 2,535,500 -
Transfers out (11,550,000) (13,980,000) (13,288,867) 691,133 Total other financing sources (uses) (9,292,500) (1,649,780) (952,746) 697,034 NET CHANGES IN FUND BALANCE $ (9,924,640) $ (9,912,503) 1,581,520 $ 11,494,023 FUND BALANCE:

Beginning of year 117,957,341
End of year $ 119,538,861
Budgeted Amounts
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Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30, 2025
130
Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20 Service cost $ 6,168,273 $ 5,920,696 $ 5,860,301 $ 5,417,134 $ 5,314,317 Interest on total pension liability 22,611,449 21,858,537 20,961,702 20,553,253 19,910,417 Differences between expected and actual
experience 1,704,397 3,251,428 (1,978,041) (812,628) 2,219,628 Changes in assumptions - 8,484,848 - - -
Changes in benefit terms 425,881 - - - -
Benefit payments, including refunds of
employee contributions (19,160,708) (18,230,555) (16,833,252) (15,894,895) (15,050,756) Net change in total pension liability 11,323,411 13,225,987 16,495,558 9,262,864 12,393,606 Total pension liability - beginning 332,493,990 319,268,003 302,772,445 293,509,581 281,115,975 Total pension liability - ending (a) $ 332,493,990 343,817,401 $ 319,268,003 $ 302,772,445 $ 293,509,581 $ Plan fiduciary net position
Contributions - employer 10,792,551 10,683,495 9,953,731 8,968,085 8,308,013 Contributions - employee 2,678,257 2,571,915 2,557,263 2,454,476 2,412,286 Investment income (net of
administrative expenses) 22,636,718 14,067,212 (18,866,744) 47,026,715 10,192,254 Benefit payments (19,160,708) (18,230,555) (16,833,252) (15,894,895) (15,050,756) Other (192,597) (167,490) (156,429) (208,546) (286,451) Net change in plan fiduciary net position 16,754,221 8,924,577 (23,345,431) 42,345,835 5,575,346 Plan fiduciary net position - beginning 236,692,324 227,767,747 251,113,178 208,767,343 203,191,997 Plan fiduciary net position - ending (b) 253,446,545 236,692,324 227,767,747 251,113,178 208,767,343 Net pension liability - ending (a)-(b) $ 90,370,856 $ 91,500,256 $ 91,500,256 $ 51,659,267 $ 84,742,238 Plan fiduciary net position as a
percentage of the total pension liability 73.72% 71.19% 71.34% 82.94% 71.13% Covered payroll $ 40,268,344 $ 38,292,673 $ 36,700,692 $ 36,154,902 $ 35,484,738 Net pension liability as a
percentage of covered payroll 224.42% 238.95% 249.31% 142.88% 238.81% 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, 2025
131
Measurement Period 2018-19 2017-18 2016-17 2015-16 2014-15 Service cost $ 5,232,210 $ 5,037,653 $ 4,518,151 $ 3,993,514 $ 3,892,876 Interest on total pension liability 19,039,419 18,044,112 17,389,674 17,090,620 16,438,129 Differences between expected and actual
experience 4,029,100 1,103,888 (3,106,399) (331,929) (627,100) Changes in assumptions (1,424,920) - 13,781,463 (3,817,336) - Changes in benefit terms - - - - -
Benefit payments, including refunds of
employee contributions (13,650,253) (12,925,302) (12,461,817) (11,970,354) (11,069,836) Net change in total pension liability 14,650,476 9,835,431 20,121,072 8,781,851 4,816,733 Total pension liability - beginning 266,465,499 256,630,068 236,508,996 227,727,145 222,910,412 Total pension liability - ending (a) $ 266,465,499 281,115,975 $ 256,630,068 $ 236,508,996 $ 227,727,145 $ Plan fiduciary net position
Contributions - employer 7,343,013 6,287,676 5,873,612 5,126,750 4,501,438 Contributions - employee 2,463,688 2,208,675 2,041,614 1,928,776 1,950,191 Investment income (net of
administrative expenses) 12,797,943 15,561,240 18,815,053 868,395 3,955,299 Benefit payments (13,650,253) (12,925,302) (12,461,817) (11,970,354) (11,069,836) Other (138,259) (832,007) (251,079) (106,172) (198,614) Net change in plan fiduciary net position 8,816,132 10,300,282 14,017,383 (4,152,605) (861,522) Plan fiduciary net position - beginning 194,375,865 184,075,583 170,058,200 174,210,805 175,072,327 Plan fiduciary net position - ending (b) 203,191,997 194,375,865 184,075,583 170,058,200 174,210,805 Net pension liability - ending (a)-(b) $ 77,923,978 $ 72,089,634 $ 72,554,485 $ 66,450,796 $ 53,516,340 Plan fiduciary net position as a
percentage of the total pension liability 72.28% 72.95% 71.73% 71.90% 76.50% Covered payroll $ 35,068,361 $ 34,688,256 $ 31,556,856 $ 28,252,538 $ 26,888,005 Net pension liability as a
percentage of covered payroll 222.21% 207.82% 229.92% 235.20% 199.03% Miscellaneous Plan (Continued)
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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, 2025
132
Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20 Service cost $ 5,287,654 $ 5,234,236 $ 4,815,965 $ 4,521,737 $ 4,385,424 Interest on total pension liability 32,936,050 32,047,044 31,147,674 30,250,946 29,312,094 Differences between expected and actual
experience 2,246,725 2,427,801 2,215,829 2,818,839 3,435,208 Changes in assumptions - 15,714,311 - - -
Changes in benefit terms 206,341 - - - -
Benefit payments, including refunds of
employee contributions (26,954,756) (26,386,401) (25,158,731) (23,890,302) (23,017,166) Net change in total pension liability 13,515,673 13,529,021 28,735,048 13,701,220 14,115,560 Total pension liability - beginning 485,920,883 472,391,862 443,656,814 429,955,594 415,840,034 Total pension liability - ending (a) $ 485,920,883 499,436,556 $ 472,391,862 $ 443,656,814 $ 429,955,594 $ Plan fiduciary net position
Contributions - employer 17,313,207 16,292,527 14,717,993 13,566,455 12,284,260 Contributions - employee 2,162,214 1,761,725 1,709,770 1,789,979 1,576,589 Investment income (net of
administrative expenses) 28,217,011 17,641,331 (24,080,446) 60,169,718 13,065,390 Benefit payments (26,954,756) (26,386,401) (25,158,731) (23,890,302) (23,017,166) Other (239,420) (209,675) (198,185) (266,493) (371,100) Net change in plan fiduciary net position 20,498,256 9,099,507 (33,009,599) 51,369,357 3,537,973 Plan fiduciary net position - beginning 294,234,877 285,135,370 318,144,969 266,775,612 263,237,639 Plan fiduciary net position - ending (b) $ 294,234,877 314,733,133 $ 285,135,370 $ 318,144,969 $ 266,775,612 $ Net pension liability - ending (a)-(b) $ 191,686,006 184,703,423 $ 187,256,492 $ 125,511,845 $ 163,179,982 $ Plan fiduciary net position as a
percentage of the total pension liability 63.02% 60.55% 60.36% 71.71% 62.05% Covered payroll $ 19,524,472 $ 17,595,173 $ 17,257,920 $ 16,442,390 $ 16,067,107 Net pension liability as a
percentage of covered payroll 946.01% 1089.42% 1085.05% 763.34% 1015.62% Safety 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, 2025
133
Measurement Period 2018-19 2017-18 2016-17 2015-16 2014-15 Service cost $ 4,449,133 $ 7,417,456 $ 7,342,172 $ 6,024,059 $ 5,876,118 Interest on total pension liability 28,324,725 27,109,372 25,954,748 25,211,819 24,350,391 Differences between expected and actual
experience 4,999,458 4,313,272 (652,769) (1,229,918) (4,513,903) Changes in assumptions (1,764,356) - 20,868,220 (5,706,829) - Changes in benefit terms - - - - -
Benefit payments, including refunds of
employee contributions (21,718,515) (20,369,839) (19,099,929) (18,246,437) (17,373,723) Net change in total pension liability 16,054,801 16,705,905 34,412,442 11,759,523 2,632,054 Total pension liability - beginning 399,785,233 383,079,328 348,666,886 336,907,363 334,275,309 Total pension liability - ending (a) $ 399,785,233 415,840,034 $ 383,079,328 $ 348,666,886 $ 336,907,363 $ Plan fiduciary net position
Contributions - employer 14,131,640 13,411,260 13,038,623 10,598,960 9,719,832 Contributions - employee 2,260,834 2,509,623 2,358,978 2,232,023 2,180,686 Investment income (net of
administrative expenses) 16,597,022 20,229,991 24,165,223 1,116,133 4,925,152 Benefit payments (21,718,515) (20,369,839) (19,099,929) (18,246,437) (17,373,723) Other (179,352) (1,073,204) (320,823) (135,133) (249,571) Net change in plan fiduciary net position 11,091,629 14,707,831 20,142,072 (4,434,454) (797,624) Plan fiduciary net position - beginning 252,146,010 237,438,179 217,296,107 221,730,561 222,528,185 Plan fiduciary net position - ending (b) $ 252,146,010 263,237,639 $ 237,438,179 $ 217,296,107 $ 221,730,561 $ Net pension liability - ending (a)-(b) $ 147,639,223 152,602,395 $ 145,641,149 $ 131,370,779 $ 115,176,802 $ Plan fiduciary net position as a
percentage of the total pension liability 63.30% 63.07% 61.98% 62.32% 65.81% Covered payroll $ 22,211,287 $ 28,442,831 $ 27,088,471 $ 24,092,535 $ 22,899,741 Net pension liability as a
percentage of covered payroll 687.05% 519.07% 537.65% 545.28% 502.96% Safety Plan (Continued)
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Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Pension
For the Year Ended June 30, 2025
134
Fiscal Year: 2024-25 2023-24 2022-23 2021-22 2020-21
Contractually determined contribution (actuarially determined) 12,161,019 $ 10,792,135 $ 10,683,495 $ 9,953,731 $ 8,968,085 $ Contributions in relation to the actuarially determined contributions (12,161,019) (10,792,135) (10,683,495) (9,953,731) (8,968,085) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 40,268,344 43,802,728 $ 38,292,673 $ 36,700,692 $ 36,154,902 $ Contributions as a percentage of covered payroll 27.76% 26.80% 27.90% 27.12% 24.80% Fiscal Year: 2019-20 2018-19 2017-18 2016-17 2015-16
Contractually determined contribution (actuarially determined) 8,308,301 $ $ 7,343,001 $ 6,287,697 $ 5,873,612 $ 5,331,714 Contributions in relation to the actuarially determined contributions (8,308,301) (7,343,001) (6,287,697) (5,873,612) (5,331,714) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 35,068,361 35,484,738 $ 34,688,256 $ 31,556,856 $ 28,252,538 $ Contributions as a percentage of covered payroll 23.41% 20.94% 18.13% 18.61% 18.87% Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/period For details, see June 30, 2021 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details, see June 30, 2021 Funding Valuation Report.

Inflation 2.30%
Salary increases Varies by entry age and service
Payroll growth 2.80%
Investment rate of return 6.8% 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 2023-24 were derived from the June 30, 2021 funding valuation report.

The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
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City of San Mateo
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions – Pension (Continued)
For the Year Ended June 30, 2025
135
Fiscal Year: 2024-25 2023-24 2022-23 2021-22 2020-21
Contractually determined contribution (actuarially determined) 18,837,252 $ 17,313,205 $ 16,292,527 $ 14,717,993 $ 13,566,455 $ Contributions in relation to the actuarially determined contributions (18,837,252) (17,313,205) (16,292,527) (14,717,993) (13,566,455) Contribution deficiency (excess) $ - - $ $ - $ - $ -
Covered payroll $ 19,524,472 20,622,063 $ 17,595,173 $ 17,257,920 $ 16,442,390 $ Contributions as a percentage of covered payroll 91.35% 88.67% 92.60% 85.28% 82.51% Fiscal Year: 2019-20 2018-19 2017-18 2016-17 2015-16
Contractually determined contribution (actuarially determined) 12,284,260 $ 12,496,190 $ 12,011,260 $ 11,663,623 $ 10,576,566 $ Contributions in relation to the actuarially determined contributions (12,284,260) (14,121,190) (13,411,260) (13,038,623) (10,576,566) Contribution deficiency (excess) $ (1,625,000) - $ $ (1,400,000) $ (1,375,000) $ - Covered payroll $ 22,211,287 16,067,107 $ 28,442,831 $ 27,088,471 $ 24,092,535 $ Contributions as a percentage of covered payroll 76.46% 63.58% 47.15% 48.13% 43.90% Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/period For details, see June 30, 2021 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details, see June 30, 2021 Funding Valuation Report.

Inflation 2.30%
Salary increases Varies by entry age and service
Payroll growth 2.80%
Investment rate of return 6.80% 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 2023-24 were derived from the June 30, 2021 funding valuation report.

The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
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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, 2025
136
2025 2024 2023 2022 2021 2020 2019 2018
For the Measurement Period: 2023-2024 2022-2023 2021-2022 2020-2021 2019-2020 2018-2019 2017-2018 2016-20171 Total OPEB Liability:

Service Cost 539,452 $ 563,606 $ 548,522 $ 497,327 $ 482,842 $ 692,000 $ 672,000 $ 653,000 $ Interest on the total OPEB liability 1,249,277 1,079,059 1,048,022 1,144,590 1,113,841 1,338,000 1,286,000 1,240,000 Changes in benefit terms - - - - - - - -
Difference between expected
and actual experience 438,959 4,098,199 (670,829) - (3,453,000) - - - Changes in assumptions (463,862) (1,405,066) (86,901) - (509,000) - - - Benefit payments (1,080,787) (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 OPEB Liability 683,039 3,223,321 478,948 (246,057) 415,683 (3,106,000) 689,000 715,000 Beginning of Year 20,480,895 17,257,574 16,778,626 17,024,683 16,609,000 19,715,000 19,026,000 18,311,000 End of Year $ 21,163,934 $ 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 $ 1,237,000 $ 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 1,057,611 683,260 (1,364,786) 2,140,859 239,112 495,000 372,000 334,000 Administrative expenses (3,150) (2,754) (9,587) (9,723) (11,386) (7,000) (7,000) (2,000) Benefit payments (1,080,787) (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 1,210,674 761,029 (435,367) 2,817,892 871,726 1,264,000 1,009,000 1,006,000 Beginning of Year 9,591,280 8,830,251 9,265,618 6,447,726 5,576,000 4,312,000 3,303,000 2,297,000 End of Year $ 10,801,954 $ 9,591,280 $ 8,830,251 $ 9,265,618 $ 6,447,726 $ 5,576,000 $ 4,312,000 $ 3,303,000 Net OPEB Liability $ 10,361,980 $ 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 OPEB Liability 51.04% 46.83% 51.17% 55.22% 37.87% 33.57% 21.87% 17.36% Covered Payroll $ 64,907,000 $ 60,964,235 $ 59,443,000 $ 57,176,000 $ 55,405,000 $ 62,798,000 $ 66,133,000 $ 57,300,000 Net OPEB Liability as a % of Payroll 15.96% 17.86% 14.18% 13.14% 19.09% 17.57% 23.29% 27.44% 1 Historical information is presented only from the implementation year. 288 of 1110
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Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - OPEB
For the Year Ended June 30, 2025
137
2024-25 2023-24 2022-23 2021-22 2020-21
Actuarially determined contribution $ 1,561,537 $ 1,562,723 $ 1,193,000 $ 1,319,000 $ 1,281,000 Contributions in relation to the
actuarially determined contributions (1,562,723) (1,562,723) (1,193,000) (2,056,602) (1,817,000) Contribution deficiency (excess) $ (1,186) $ - $ - $ (737,602) $ (536,000) Covered-employee payroll 70,674,141 $ 64,907,000 $ 60,964,235 $ 59,443,000 $ 57,176,000 $ Contributions as a percentage of
covered-employee payroll 2.21% 2.41% 1.94% 3.46% 3.18%
2019-20 2018-19 2017-18 1
Actuarially determined contribution $ 1,817,000 $ 1,764,000 $ 1,913,000 Contributions in relation to the
actuarially determined contributions (1,825,000) (1,950,000) (1,913,000) Contribution deficiency (excess) $ (8,000) $ (186,000) $ - Covered-employee payroll 55,405,000 $ 62,798,000 $ 66,133,000 $ Contributions as a percentage of
covered-employee payroll 3.29% 3.11% 2.89%
Notes to Schedule
Actuarial valuation date 6/30/2023
Actuarial cost method Entry-Age Normal Cost Method, Level % of pay Amortization Period 14-year fixed period for 2023-2024
Asset valuation method Actuarial value of assets. Investment gains and losses spread over 5-year rolling period.

Inflation 2.50%
Investment rate of return 6.10%
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 Mortality CalPERS 2021 Experience Study Report
Mortality Improvement Mortality projected fully generational with MacLeod Watts Sale-2022 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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SUPPLEMENTARY INFORMATION
139
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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 and Recreation Tax, as well as the Parks and Recreation Impact and In Lieu Fees to fund Parks and Recreation related projects through a transfer to the Capital Improvement Projects Fund.

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

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

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

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.

Debt Service Funds:

General Obligation Bonds Fund accounts for voter-approved property tax revenues and debt service payments on general obligation bonds.
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
141
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Community
Police Development
Grants Block Grant HOME City Housing
Fund Fund Fund Fund
ASSETS
Cash and investments $ 345,749 $ - $ 286,284 $ 1,369,758 Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net 200,799 - - -
Interest receivable - - - -
Taxes receivable - - - -
Grants receivable 116,125 162,503 27,547 -
Prepaid items and supplies - - - -
Loans and notes receivable, net - 361,083 209,783 54,684 Total assets $ 662,673 $ 523,586 $ 523,614 $ 1,424,442

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 34,455 43,919 - -
Accrued payroll 1,738 - - -
Due to other funds - 48,871 - -
Deposits payable - - - -
Unearned revenues - - - -
Total liabilities 36,193 92,790 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 77,026 29,660 -
Total deferred inflows of resources - 77,026 29,660 -
Fund Balances:

Nonspendable - - - -
Restricted 626,480 353,770 493,954 1,424,442
Unassigned (deficit) - - - -
Total fund balances 626,480 353,770 493,954 1,424,442
Total liabilities, deferred inflows of
resources, and fund balances $ 662,673 $ 523,586 $ 523,614 $ 1,424,442 (Continued)
Special Revenue
Non-Major Governmental Funds
City of San Mateo
Combining Balance Sheet
June 30, 2025
142
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Permanent
Low & Moderate Local Housing Road Maintenance
Income Housing Allocation Gas Tax and Rehabilitation
Fund Fund Fund Fund
ASSETS
Cash and investments $ 2,811,247 $ 320,854 $ 2,635,546 $ 9,373,061 Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - - - -
Interest receivable - - - -
Taxes receivable - - 253,551 508,383
Grants receivable - 293,103 - -
Prepaid items and supplies - - - -
Loans and notes receivable, net 2,884,560 - - -
Total assets $ 5,695,807 $ 613,957 $ 2,889,097 $ 9,881,444

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 1,276 148,925 - -
Accrued payroll - - - -
Due to other funds - - - -
Deposits payable - - - -
Unearned revenues - 441,261 - -
Total liabilities 1,276 590,186 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 246,162 - - -
Total deferred inflows of resources 246,162 - - -
Fund Balances:

Nonspendable - - - -
Restricted 5,448,369 23,771 2,889,097 9,881,444
Unassigned (deficit) - - - -
Total fund balances 5,448,369 23,771 2,889,097 9,881,444 Total liabilities, deferred inflows of
resources, and fund balances $ 5,695,807 $ 613,957 $ 2,889,097 $ 9,881,444 (Continued)
Special Revenue
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2025
143
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Parks and Traffic
Advance Planning Solid Waste Recreation Impact Fee
Fund Fund Fund Fund
ASSETS
Cash and investments $ 6,544,390 $ 19,188,048 $ 18,708,426 $ - Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - 380,991 - -
Interest receivable - - - -
Taxes receivable - - - -
Grants receivable - - - -
Prepaid items and supplies - - - -
Loans and notes receivable, net - - - -
Total assets $ 6,544,390 $ 19,569,039 $ 18,708,426 $ -

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 33,950 524,860 - -
Accrued payroll - 55,063 - -
Due to other funds - - 1,753,501 -
Deposits payable - - - -
Unearned revenues - - - -
Total liabilities 33,950 579,923 1,753,501 -

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

Nonspendable - - - -
Restricted 6,510,440 18,989,116 18,708,426 -
Unassigned (deficit) - - (1,753,501) -
Total fund balances 6,510,440 18,989,116 18,708,426 (1,753,501) Total liabilities, deferred inflows of
resources, and fund balances $ 6,544,390 $ 19,569,039 $ 18,708,426 $ - (Continued)
Special Revenue
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2025
144
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Debt Service
Commercial Construction General
Linkage Fee Services Landfill Bonds Obligation Bonds
Fund Fund Fund Fund
ASSETS
Cash and investments $ 3,551,934 $ 26,041,283 $ 4,505,943 $ 7,483,476 Restricted cash and investments held by fiscal agents - - - - Accounts receivable, net - 876,963 - -
Interest receivable - - - -
Taxes receivable - - - -
Grants receivable - 3,300 - -
Prepaid items and supplies - 3,502 - -
Loans and notes receivable, net - - - -
Total assets $ 3,551,934 $ 26,925,048 $ 4,505,943 $ 7,483,476

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable - 136,411 8,998 -
Accrued payroll - 212,869 - -
Due to other funds - - - -
Deposits payable - 657,534 - -
Unearned revenues 2,219,060 - - -
Total liabilities 3,225,874 - 8,998 -

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

Nonspendable - 3,502 - -
Restricted 3,551,934 23,695,672 4,496,945 7,483,476
Unassigned (deficit) - - - -
Total fund balances 3,551,934 23,699,174 4,496,945 7,483,476 Total liabilities, deferred inflows of
resources, and fund balances $ 3,551,934 $ 26,925,048 $ 4,505,943 $ 7,483,476 (Continued)
Special Revenue
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2025
145
297 of 1110
Debt Service
Total Non-Major
2% Hotel Tax Governmental
Fund Funds
ASSETS
Cash and investments $ 250,498 $ 103,416,497
Restricted cash and investments held by fiscal agents 57,599 57,599 Accounts receivable, net 1,458,753 -
Interest receivable 188 188
Taxes receivable 72,298 834,232
Grants receivable - 602,578
Prepaid items and supplies - 3,502
Loans and notes receivable, net 3,510,110 -
Total assets $ 380,583 $ 109,883,459

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 16,486 949,280
Accrued payroll - 269,670
Due to other funds 1,802,372 -
Deposits payable - 657,534
Unearned revenues 2,660,321 -
Total liabilities 16,486 6,339,177

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 352,848
Total deferred inflows of resources - 352,848
Fund Balances:

Nonspendable - 3,502
Restricted 364,097 104,941,433
Unassigned (deficit) (1,753,501) -
Total fund balances 364,097 103,191,434
Total liabilities, deferred inflows of
resources, and fund balances $ 380,583 $ 109,883,459
(Concluded)
City of San Mateo
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2025
146
298 of 1110
Community
Police Development
Grants Block Grant HOME City Housing
Fund Fund Fund Fund
REVENUES:

Property taxes $ - $ - $ - $ -
Other taxes - - - -
Licenses, building and other permits - - - -
Fines, forfeitures and penalties 143,610 - - -
Intergovernmental 1,349,440 226,585 27,547 -
Charges for services - - - -
Investment income 196,355 - - -
Assessments and garbage collection - - - -
Capital contributions - - - -
Other revenues - 16,169 10,638 226,683
Total revenues 242 1,689,405 38 ,754 226 ,185 ,683
EXPENDITURES:

Current:

General government:

City Manager - - - -
City Attorney - - - -
Finance - - - -
Information technology - - - -
Community development 280,060 - 27,547 -
Public safety:

Police 1,497,560 - - -
Public works - - - -
Non-departmental - - - -
Capital outlay - 96,558 - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 280,060 1,594,118 27,547 -

REVENUES OVER
(UNDER) EXPENDITURES 95,287 (37,306) 10,638 226,683
OTHER FINANCING SOURCES (USES):

Inception of subscription liability - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
NET CHANGES IN FUND BALANCES 95,287 (37,306) 10,638 226,683 FUND BALANCES:

Beginning of year 531,193 391,076 483,316 1,197,759
End of year $ 626,480 $ 353,770 $ 493,954 $ 1,424,442
(Continued)
Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances City of San Mateo
For the Year Ended June 30, 2025
Non-Major Governmental Funds
147
299 of 1110
Permanent
Low & Moderate Local Housing Road Maintenance
Income Housing Allocation Gas Tax and Rehabilitation
Fund Fund Fund Fund
REVENUES:

Property taxes $ - $ - $ - $ -
Other taxes - - - -
Licenses, building and other permits - - - -
Fines, forfeitures and penalties - - - -
Intergovernmental - 353,313 2,973,576 2,884,922
Charges for services - - - -
Investment income 189,633 13,747 112,890 401,828
Assessments and garbage collection - - - -
Capital contributions - - - -
Other revenues 180,056 - - -
Total revenues 367 369,689 3 ,060 3 ,086,466 ,286,750
EXPENDITURES:

Current:

General government:

City Manager - - - -
City Attorney - - - -
Finance - - - -
Information technology - - - -
Community development 353,313 56,524 - -
Public safety:

Police - - - -
Public works - - - -
Non-departmental - - - -
Capital outlay - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 353,313 56,524 - -

REVENUES OVER
(UNDER) EXPENDITURES 13,747 313,165 3,086,466 3,286,750 OTHER FINANCING SOURCES (USES):

Inception of subscription liability - - - -
Transfers in - - - -
Transfers out - - (1,965,814) (897,879)
Total other financing sources (uses) - - (1,965,814) (897,879) NET CHANGES IN FUND BALANCES 13,747 313,165 1,120,652 2,388,871 FUND BALANCES:

Beginning of year 5,135,204 10,024 1,768,445 7,492,573
End of year 5,448,369 $ 23,771 $ 2,889,097 $ 9,881,444 $ (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, 2025
Special Revenue
148
300 of 1110
Parks and Traffic
Advance Planning Solid Waste Recreation Impact Fee
Fund Fund Fund Fund
REVENUES:

Property taxes $ - $ - $ - $ -
Other taxes - - 156,093 -
Licenses, building and other permits - - - -
Fines, forfeitures and penalties 4,595,760 - - -
Intergovernmental 93,414 404,788 - -
Charges for services 1,516,403 1,483,691 - -
Investment income 280,387 819,292 801,940 -
Assessments and garbage collection 1,772,894 - - -
Capital contributions - - 110,364 9,575
Other revenues - 63,838 - -
Total revenues 9 1,890,204 1 ,140,263 9 ,068,397 ,575
EXPENDITURES:

Current:

General government:

City Manager 18,807 127,136 - -
City Attorney - - - -
Finance 9,937 9,130 - -
Information technology - - - -
Community development - 1,083,700 - -
Public safety:

Police - - - -
Public works - 3,755,685 - -
Non-departmental - - 17,726 -
Capital outlay 73,324 - - 1,819,496
Debt service:

Principal - 23,773 - -
Interest and fiscal charges - 200 - -
Total expenditures 3,880,919 1,220,773 17,726 1,819,496

REVENUES OVER
(UNDER) EXPENDITURES 5,259,344 669,431 1,050,671 (1,809,921) OTHER FINANCING SOURCES (USES):

Inception of subscription liability 73,324 - - -
Transfers in - - - -
Transfers out - (766,619) (1,784,621) -
Total other financing sources (uses) - (693,295) (1,784,621) - NET CHANGES IN FUND BALANCES 669,431 4,566,049 (733,950) (1,809,921) FUND BALANCES:

Beginning of year 5,841,009 14,423,067 19,442,376 56,420 End of year $ 6,510,440 $ 18,989,116 $ 18,708,426 $ (1,753,501) (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, 2025
Special Revenue
149
301 of 1110
Debt Service
Commercial Construction General
Linkage Fee Services Landfill Bonds Obligation Bonds
Fund Fund Fund Fund
REVENUES:

Property taxes $ - $ - $ 1,699,475 - $
Other taxes - - - -
Licenses, building and other permits 7,476,592 - - -
Fines, forfeitures and penalties - - - -
Intergovernmental - 3,300 - -
Charges for services 1,269,802 - - -
Investment income 152,179 1,115,816 193,052 320,622
Assessments and garbage collection - - - -
Capital contributions - - - -
Other revenues - 220 - -
Total revenues 9 152,179 193 ,865,730 2 ,052 ,020,097
EXPENDITURES:

Current:

General government:

City Manager 244,689 - - -
City Attorney 289,279 - - -
Finance - 26,591 - -
Information technology 117,643 - - -
Community development 9,695,591 - - -
Public safety:

Police - - - -
Public works - 1,346,286 134,969 -
Non-departmental 5,338 74,000 - 126,686
Capital outlay - - - -
Debt service:

Principal - - 2,600,000 -
Interest and fiscal charges - - 2,091,750 -
Total expenditures 11,794,079 5,338 134,969 4,818,436

REVENUES OVER
(UNDER) EXPENDITURES 146,841 (1,928,349) 58,083 (2,798,339) OTHER FINANCING SOURCES (USES):

Inception of subscription liability - - - -
Transfers in - - - 2,690,000
Transfers out - (1,306,394) (51,140) -
Total other financing sources (uses) - (1,306,394) (51,140) 2,690,000 NET CHANGES IN FUND BALANCES 146,841 (3,234,743) 6,943 (108,339) FUND BALANCES:

Beginning of year, as previously reported 3,405,093 26,933,917 4,490,002 7,591,815 End of year $ 3,551,934 $ 23,699,174 $ 4,496,945 $ 7,483,476 (Continued)
Special Revenue
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, 2025
150
302 of 1110
Debt Service
Total Non-Major
2% Hotel Tax Governmental
Fund Funds
REVENUES:

Property taxes $ 1,699,475 - $
Other taxes 939,762 783,669
Licenses, building and other permits 7,476,592 -
Fines, forfeitures and penalties 4,739,370 -
Intergovernmental 8,316,885 -
Charges for services 4,269,896 -
Investment income 4,611,492 13,751
Assessments and garbage collection 1,772,894 -
Capital contributions 119,939 -
Other revenues 497,604 -
Total revenues 34 797,420 ,443,909
EXPENDITURES:

Current:

General government:

City Manager 390,632 -
City Attorney 289,279 -
Finance 45,658 -
Information technology 117,643 -
Community development 11,496,735 -
Public safety:

Police 1,497,560 -
Public works 5,236,940 -
Non-departmental 358,463 134,713
Capital outlay 1,989,378 -
Debt service:

Principal 3,168,773 545,000
Interest and fiscal charges 2,374,465 282,515
Total expenditures 26,965,526 962,228

REVENUES OVER
(UNDER) EXPENDITURES (164,808) 7,478,383
OTHER FINANCING SOURCES (USES):

Inception of subscription liability 73,324 -
Transfers in 3,040,000 350,000
Transfers out - (6,772,467)
Total other financing sources (uses) 350,000 (3,659,143) NET CHANGES IN FUND BALANCES 3,819,240 185,192
FUND BALANCES:

Beginning of year 99,372,194 178,905
End of year $ 103,191,434 364,097 $
(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, 2025
151
303 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines, forfeitures and penalties $ - $ - $ 143,610 $ 143,610 Intergovernmental 1,741,137 2,306,574 1,349,440 (957,134) Investment income 6,000 6,000 196,355 190,355
Total revenues 1,747,137 2,312,574 1,689,405 (623,169)
EXPENDITURES:

Current:

Public safety:

Police 1,655,239 1,984,651 1,497,560 487,091
Capital outlay 77,000 159,000 96,558 62,442
Total expenditures 1,732,239 2,143,651 1,594,118 549,533 NET CHANGES IN FUND BALANCE $ 14,898 $ 168,923 95,287 $ (73,636) FUND BALANCE:

Beginning of year 531,193
End of year $ 626,480
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, 2025
Budgeted Amounts
152
304 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 732,000 $ 732,000 $ 226,585 $ (505,415) $ Other revenues 8,000 8,000 16,169 8,169
Total revenues 740,000 740,000 242,754 (497,246)
EXPENDITURES:

Current:

Community development 504,175 504,175 280,060 224,115
Total expenditures 504,175 504,175 280,060 224,115

REVENUES OVER
(UNDER) EXPENDITURES 235,825 235,825 (37,306) (273,131) OTHER FINANCING SOURCES (USES):

Transfers out (617,000) (617,000) - 617,000
Total other financing sources (uses) (617,000) (617,000) - 617,000 NET CHANGES IN FUND BALANCE $ (381,175) (381,175) $ (37,306) 343,869 $ FUND BALANCE:

Beginning of year 391,076
End of year $ 353,770
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, 2025
Budgeted Amounts
153
305 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental $ - $ - $ 27,547 $ 27,547
Other revenues 15,000 15,000 10,638 (4,362)
Total revenues 15,000 15,000 38,185 23,185
EXPENDITURES:

Current:

Community development 10,000 10,000 27,547 (17,547)
Total expenditures 10,000 10,000 27,547 (17,547)
NET CHANGES IN FUND BALANCE $ 5,000 $ 5,000 10,638 $ 5,638 FUND BALANCE:

Beginning of year 483,316
End of year $ 493,954
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, 2025
Budgeted Amounts
154
306 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Other revenues $ 16,000 $ 16,000 $ 226,683 $ 210,683
Total revenues 66,000 66,000 226,683 160,683
EXPENDITURES:

Current:

Community development 228,500 228,500 - 228,500
Total expenditures 228,500 228,500 - 228,500

REVENUES OVER
(UNDER) EXPENDITURES (162,500) (162,500) 226,683 389,183 NET CHANGES IN FUND BALANCE $ (162,500) $ (162,500) 226,683 $ 389,183 FUND BALANCE:

Beginning of year 1,197,759
End of year $ 1,424,442
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, 2025
Budgeted Amounts
155
307 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income $ 75,190 $ 75,190 $ 189,633 $ 114,443 Other revenues 214,000 214,000 180,056 (33,944)
Total revenues 289,190 289,190 369,689 80,499
EXPENDITURES:

Current:

Community development 146,311 146,311 56,524 89,787
Total expenditures 146,311 146,311 56,524 89,787
NET CHANGES IN FUND BALANCE $ 142,879 $ 142,879 313,165 $ 170,286 FUND BALANCE:

Beginning of year 5,135,204
End of year $ 5,448,369
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, 2025
Budgeted Amounts
156
308 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental $ 300,000 $ 593,103 $ 353,313 $ (239,790) Investment income - - 13,747 13,747
Total revenues 300,000 593,103 367,060 (226,043)
EXPENDITURES:

Current:

Community development 309,303 602,406 353,313 249,093
Total expenditures 309,303 602,406 353,313 249,093
NET CHANGES IN FUND BALANCE $ (9,303) $ (9,303) 13,747 $ 23,050 FUND BALANCE:

Beginning of year 10,024
End of year $ 23,771
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, 2025
Budgeted Amounts
157
309 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental $ 3,011,959 $ 3,011,959 $ 2,973,576 $ (38,383) Investment income 40,000 40,000 112,890 72,890
Total revenues 3,051,959 3,051,959 3,086,466 34,507

REVENUES OVER
(UNDER) EXPENDITURES 3,051,959 3,051,959 3,086,466 34,507 OTHER FINANCING (USES):

Transfers out (4,047,500) (4,047,500) (1,965,814) 2,081,686 Total other financing (uses) (4,047,500) (4,047,500) (1,965,814) 2,081,686 NET CHANGES IN FUND BALANCE $ (995,541) $ (995,541) 1,120,652 $ 2,116,193 FUND BALANCE:

Beginning of year 1,768,445
End of year $ 2,889,097
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, 2025
Budgeted Amounts
158
310 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental $ 2,738,904 $ 2,738,904 $ 2,884,922 $ 146,018 Investment income 146,000 146,000 401,828 255,828
Total revenues 2,884,904 2,884,904 3,286,750 401,846

REVENUES OVER
(UNDER) EXPENDITURES 2,884,904 2,884,904 3,286,750 401,846 OTHER FINANCING SOURCES (USES):

Transfers out (3,200,000) (3,200,000) (897,879) 2,302,121 Total other financing sources (uses) (3,200,000) (3,200,000) (897,879) 2,302,121 NET CHANGES IN FUND BALANCE $ (315,096) $ (315,096) 2,388,871 $ 2,703,967 FUND BALANCE:

Beginning of year 7,492,573
End of year $ 9,881,444
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, 2025
Budgeted Amounts
159
311 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental $ 250,000 $ 250,000 $ 93,414 $ (156,586) Charges for services 1,700,000 1,700,000 1,516,403 (183,597) Investment income 94,760 94,760 280,387 185,627
Total revenues 2,044,760 2,044,760 1,890,204 (154,556)
EXPENDITURES:

Current:

General government:

City Manager 167,271 177,271 127,136 50,135
Finance 14,537 14,537 9,937 4,600
Community development 1,719,539 1,719,539 1,083,700 635,839 Total expenditures 1,901,347 1,911,347 1,220,773 690,574 NET CHANGES IN FUND BALANCE $ 143,413 $ 133,413 669,431 $ 536,018 FUND BALANCE:

Beginning of year 5,841,009
End of year $ 6,510,440
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, 2025
Budgeted Amounts
160
312 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines, forfeitures and penalties $ 184,000 $ 184,000 $ 4,595,760 $ 4,411,760 Intergovernmental 375,609 629,902 404,788 (225,114)
Charges for services 1,109,000 1,109,000 1,483,691 374,691 Investment income 160,000 160,000 819,292 659,292
Assessments and garbage collection 1,944,000 1,944,000 1,772,894 (171,106) Capital contributions 150,000 150,000 - (150,000)
Other revenues 82,000 82,000 63,838 (18,162)
Total revenues 4,004,609 4,258,902 9,140,263 4,881,361
EXPENDITURES:

Current:

General government:

City Manager 18,012 18,012 18,807 (795)
Finance 14,537 14,537 9,130 5,407
Public works 3,639,219 3,639,219 3,755,685 (116,466)
Capital outlay 40,000 294,293 73,324 220,969
Debt service:

Principal - - 23,773 (23,773)
Interest and fiscal charges - - 200 (200)
Total expenditures 3,711,768 3,966,061 3,880,919 85,142

REVENUES OVER
(UNDER) EXPENDITURES 292,841 292,841 5,259,344 4,966,503 OTHER FINANCING SOURCES (USES):

Inception of lease liability - - 73,324 73,324
Transfers out - - (766,619) (766,619)
Total other financing sources (uses) - - (693,295) (693,295) NET CHANGES IN FUND BALANCE $ 292,841 $ 292,841 4,566,049 $ 4,273,208 FUND BALANCE:

Beginning of year 14,423,067
End of year $ 18,989,116
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, 2025
Budgeted Amounts
161
313 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Other taxes $ - $ - $ 156,093 $ 156,093
Investment income 187,000 187,000 801,940 614,940
Capital contributions 50,000 50,000 110,364 60,364
Total revenues 237,000 237,000 1,068,397 831,397
EXPENDITURES:

Current:

Non-departmental 17,726 17,726 17,726 -
Total expenditures 17,726 17,726 17,726 -

REVENUES OVER
(UNDER) EXPENDITURES 219,274 219,274 1,050,671 831,397
OTHER FINANCING SOURCES (USES):

Transfers out (938,000) (938,000) (1,784,621) (846,621) Total other financing sources (uses) (938,000) (938,000) (1,784,621) (846,621) NET CHANGES IN FUND BALANCE $ (718,726) $ (718,726) (733,950) $ (15,224) FUND BALANCE:

Beginning of year 19,442,376
End of year $ 18,708,426
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, 2025
Budgeted Amounts
162
314 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Capital contributions $ 2,428,197 $ 2,428,197 $ 9,575 $ (2,418,622) Total revenues 2,428,197 2,428,197 9,575 (2,418,622)
EXPENDITURES:

Capital outlay 1,800,000 1,800,000 1,819,496 (19,496)
Total expenditures 1,800,000 1,800,000 1,819,496 (19,496) NET CHANGES IN FUND BALANCE $ 628,197 $ 628,197 (1,809,921) $ (2,438,118) FUND (DEFICIT):

Beginning of year 56,420
End of year $ (1,753,501)
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Traffic Impact Fee Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
163
315 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines, forfeitures and penalties 5,000,000 $ 5,000,000 $ - $ (5,000,000) $ Investment income - - 152,179 152,179
Total revenues 5,000,000 5,000,000 152,179 (4,847,821)
EXPENDITURES:

Current:

Non-departmental 5,338 5,338 5,338 -
Total expenditures 5,338 5,338 5,338 -
NET CHANGES IN FUND BALANCE $ 4,994,662 4,994,662 $ 146,841 (4,847,821) $ FUND BALANCE:

Beginning of year 3,405,093
End of year $ 3,551,934
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Commercial Linkage Fee Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
164
316 of 1110
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Licenses, building and other permits $ 7,385,100 $ 7,385,100 $ 7,476,592 $ 91,492 Intergovernmental - - 3,300 3,300
Charges for services 1,406,000 1,406,000 1,269,802 (136,198) Investment income 450,000 450,000 1,115,816 665,816
Other revenues - - 220 220
Total revenues 9,241,100 9,241,100 9,865,730 624,630
EXPENDITURES:

Current:

General government:

City Manager 280,899 280,899 244,689 36,210
City Attorney 229,249 229,249 289,279 (60,030)
Finance 43,611 43,611 26,591 17,020
Information technology 129,718 129,718 117,643 12,075
Community development 12,157,457 12,157,457 9,695,591 2,461,866 Public works 1,229,840 1,229,840 1,346,286 (116,446)
Non-departmental 76,400 76,400 74,000 2,400
Total expenditures 14,147,174 14,147,174 11,794,079 2,353,095

REVENUES OVER
(UNDER) EXPENDITURES (4,906,074) (4,906,074) (1,928,349) 2,977,725 OTHER FINANCING (USES):

Transfers out (1,050,000) (1,050,000) (1,306,394) (256,394) Total other financing (uses) (1,050,000) (1,050,000) (1,306,394) (256,394) NET CHANGES IN FUND BALANCE $ (5,956,074) $ (5,956,074) (3,234,743) $ 2,721,331 FUND BALANCE:

Beginning of year 26,933,917
End of year $ 23,699,174
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Construction Services Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
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Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income $ 80,000 $ 80,000 $ 193,052 $ 113,052 Assessments and garbage collection 600,000 600,000 - (600,000) Total revenues 680,000 680,000 193,052 (486,948)
EXPENDITURES:

Current:

Public works 107,814 107,814 134,969 (27,155)
Total expenditures 107,814 107,814 134,969 (27,155)

REVENUES OVER
(UNDER) EXPENDITURES 572,186 572,186 58,083 (514,103)
OTHER FINANCING SOURCES (USES):

Transfers out - - (51,140) (51,140)
Total other financing sources (uses) - - (51,140) (51,140) NET CHANGES IN FUND BALANCE $ 572,186 $ 572,186 6,943 $ (565,243) FUND BALANCE:

Beginning of year 4,490,002
End of year $ 4,496,945
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Landfill Bonds Debt Service Fund
For the Year Ended June 30, 2025
Budgeted Amounts
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Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes $ 1,340,000 $ 1,340,000 $ 1,699,475 $ 359,475 Investment income 120,000 120,000 320,622 200,622
Total revenues 1,460,000 1,460,000 2,020,097 560,097
EXPENDITURES:

Current:

Non-departmental 125,401 125,401 126,686 (1,285)
Debt service:

Principal 3,349,400 3,349,400 2,600,000 749,400
Interest and fiscal charges 1,342,350 1,342,350 2,091,750 (749,400) Total expenditures 4,817,151 4,817,151 4,818,436 (1,285)

REVENUES OVER
(UNDER) EXPENDITURES (3,357,151) (3,357,151) (2,798,339) 558,812 OTHER FINANCING SOURCES:

Transfers in 2,690,000 2,690,000 2,690,000 -
Total other financing sources 2,690,000 2,690,000 2,690,000 - NET CHANGES IN FUND BALANCE $ (667,151) $ (667,151) (108,339) $ 558,812 FUND BALANCE:

Beginning of year 7,591,815
End of year $ 7,483,476
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual General Obligation Bonds Debt Service Fund
For the Year Ended June 30, 2025
Budgeted Amounts
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Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Other taxes $ 700,000 $ 700,000 $ 783,669 $ 83,669
Investment income - - 13,751 13,751
Total revenues 700,000 700,000 797,420 97,420
EXPENDITURES:

Current:

Non-departmental 134,144 134,144 134,713 (569)
Debt service:

Principal 545,000 545,000 545,000 -
Interest and fiscal charges 400,000 400,000 282,515 117,485 Total expenditures 1,079,144 1,079,144 962,228 116,916

REVENUES OVER
(UNDER) EXPENDITURES (379,144) (379,144) (164,808) 214,336 OTHER FINANCING SOURCES (USES):

Transfers in 350,000 350,000 350,000 -
Total other financing sources (uses) 350,000 350,000 350,000 - NET CHANGES IN FUND BALANCE $ (29,144) $ (29,144) 185,192 $ 214,336 FUND BALANCE:

Beginning of year 178,905
End of year $ 364,097
City of San Mateo
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual 2% Hotel Tax Capital Projects Fund
For the Year Ended June 30, 2025
Budgeted Amounts
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Internal Service Funds
Workers' Compensation Insurance Fund accounts for all workers' compensation self-insurance activities.

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

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

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

Vehicle and Equipment Replacement Fund accounts for rental charges to City departments and the replacement of vehicles and equipment.

Fleet and Building Maintenance Fund accounts for the charges to user departments and the expenses relating to the maintenance of City vehicles and buildings.
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Workers' Comprehensive
Compensation Dental Liability
Insurance Self-Insurance Benefits Insurance
ASSETS
Current assets:

Cash and investments $ 21,894,738 $ 821,248 $ 1,053,335 $ 2,795,124 Accounts receivable, net 49,207 - 733,102 -
Grants receivable - - - -
Prepaid items, inventory, and deposits 395,000 147,000 - 30,000 Total current assets 22,338,945 968,248 1,786,437 2,825,124 Noncurrent assets:

Capital assets:

Depreciable, net - - - -
Total capital assets - - - -
Total noncurrent assets - - - -
Total assets 22,338,945 968,248 1,786,437 2,825,124

LIABILITIES
Current liabilities:

Accounts payable 59,667 5,810 26,422 118,631
Accrued payroll 8,529 - - -
Deposits payable - - 139,256 -
Claims payable - due within one year 2,504,000 - - 1,494,000 Total current liabilities 2,572,196 5,810 165,678 1,612,631 Noncurrent liabilities:

Claims payable - due in more than one year 10,686,000 - - 3,851,000 Total noncurrent liabilities 10,686,000 - - 3,851,000
Total liabilities 13,258,196 5,810 165,678 5,463,631

NET POSITION
Net investment in capital assets - - - -
Unrestricted (deficit) 9,080,749 962,438 1,620,759 (2,638,507) Total net position $ 962,438 9,080,749 $ 1,620,759 $ (2,638,507) $ City of San Mateo
Combining Statement of Net Position
All Internal Service Funds
June 30, 2025
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Vehicle and Fleet and
Equipment Building
Replacement Maintenance Total
ASSETS
Current assets:

Cash and investments 10,894,625 $ 212,314 $ 37,671,384 $ Accounts receivable, net - - 782,309
Grants receivable 3,043 - 3,043
Prepaid items, inventory, and deposits - 70,124 642,124 Total current assets 10,897,668 282,438 39,098,860
Noncurrent assets:

Capital assets:

Depreciable, net 6,772,578 65,496 6,838,074
Total capital assets 6,772,578 65,496 6,838,074
Total noncurrent assets 65,496 6,772,578 6,838,074
Total assets 17,670,246 347,934 45,936,934

LIABILITIES
Current liabilities:

Accounts payable 216,948 286,769 714,247
Accrued payroll - 48,928 57,457
Deposits payable - - 139,256
Claims payable - due within one year - - 3,998,000
Total current liabilities 216,948 335,697 4,908,960
Noncurrent liabilities:

Claims payable - due in more than one year - - 14,537,000 Total noncurrent liabilities - - 14,537,000
Total liabilities 216,948 335,697 19,445,960

NET POSITION
Net investment in capital assets 6,772,578 65,496 6,838,074 Unrestricted (deficit) 10,680,720 (53,259) 19,652,900
Total net position $ 17,453,298 $ 12,237 $ 26,490,974
City of San Mateo
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2025
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Workers' Comprehensive
Compensation Dental Liability
Insurance Self-Insurance Benefits Insurance
OPERATING REVENUES:

Charges for services $ 4,379,520 $ 842,547 $ 48,825,099 $ 3,700,000 Other revenue 668,000 - - 14,510
Total operating revenues 5,047,520 842,547 48,825,099 3,714,510 OPERATING EXPENSES:

Personnel services 433,523 48,166,673 - 198,786
Materials and supplies 2,065,930 815,307 122,003 5,850,558 Depreciation and amortization - - - -
Total operating expenses 2,499,453 815,307 48,288,676 6,049,344 OPERATING INCOME (LOSS) 2,548,067 27,240 536,423 (2,334,834) NONOPERATING REVENUES (EXPENSES):

Investment income 938,056 - - 119,754
Gain on sale of capital assets - - - -
Grants - - - -
Total nonoperating revenues (expenses) 938,056 - - 119,754 INCOME (LOSS) BEFORE TRANSFERS 3,486,123 27,240 536,423 (2,215,080) TRANSFERS:

Transfers in - - - 2,000,000
Transfers out (2,000,000) - - -
Total transfers (2,000,000) - - 2,000,000
Changes in net position 1,486,123 27,240 536,423 (215,080) NET POSITION (DEFICIT):

Beginning of year 7,594,626 935,198 1,084,336 (2,423,427) End of year $ 9,080,749 $ 962,438 $ 1,620,759 $ (2,638,507) City of San Mateo
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the Year Ended June 30, 2025
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Vehicle & Fleet &
Equipment Building
Replacement Maintenance Total
OPERATING REVENUES:

Charges for services $ 1,843,585 $ 5,563,043 $ 65,153,794 Other revenue 3,965 818 687,293
Total operating revenues 1,847,550 5,563,861 65,841,087 OPERATING EXPENSES:

Personnel services - 1,879,455 50,678,437
Materials and supplies 554,257 3,862,686 13,270,741
Depreciation and amortization 1,306,362 5,159 1,311,521 Total operating expenses 1,860,619 5,747,300 65,260,699 OPERATING INCOME (LOSS) (13,069) (183,439) 580,388
NONOPERATING REVENUES (EXPENSES):

Investment income 466,775 - 1,524,585
Gain on sale of capital assets 39,718 - 39,718
Grants 43,043 - 43,043
Total nonoperating revenues (expenses) 549,536 - 1,607,346 INCOME (LOSS) BEFORE TRANSFERS 536,467 (183,439) 2,187,734 TRANSFERS:

Transfers in 410,000 - 2,410,000
Transfers out (1,619,429) (3,619,429) -
Total transfers (1,209,429) (1,209,429) -
Changes in net position (672,962) (183,439) 978,305
NET POSITION (DEFICIT):

Beginning of year 18,126,260 195,676 25,512,669
End of year $ 17,453,298 $ 12,237 $ 26,490,974
City of San Mateo
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) All Internal Service Funds
For the Year Ended June 30, 2025
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Workers' Comprehensive
Compensation Dental Liability
Insurance Self-Insurance Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 4,330,313 $ 842,547 $ 48,815,784 $ 3,700,000 Cash payments to suppliers for goods and services (2,746,872) (860,868) 40,096 (4,712,923) Cash payments to employees for services (424,994) (48,288,676) - (198,786) Cash received from others 668,000 - - 14,510
Net cash provided by (used in) operating activities 1,826,447 (18,321) 567,204 (1,197,199)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers in - - 2,000,000 -
Transfers out (2,000,000) - - -
Net cash provided by (used in)
noncapital financing activities (2,000,000) - 2,000,000 -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grants and contributions - - - -
Proceeds from sale of capital assets - - - -
Acquisition of capital assets, net - - - -
Net cash (used in) capital and
related financing activities - - - -
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received 938,056 - - 119,754
Net cash provided by investing activities 938,056 - - 119,754 Net change in cash and cash equivalents 764,503 (18,321) 567,204 922,555 CASH AND CASH EQUIVALENTS:

Beginning of year 21,130,235 839,569 486,131 1,872,569
End of year $ 21,894,738 $ 821,248 $ 1,053,335 $ 2,795,124 (Continued)
City of San Mateo
Combining Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2025
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Workers' Comprehensive
Compensation Dental Liability
Insurance Self-Insurance Benefits Insurance

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

Operating income (loss) $ 2,548,067 $ 27,240 $ 536,423 $ (2,334,834) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation - - - -
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net (49,207) - (9,315) -
Grants receivable - - - -
Prepaid items, inventory, and deposits - - - -
Accounts payable (12,942) (45,561) 13,854 (167,365)
Accrued payroll 8,529 - - -
Deposits payable - - 26,242 -
Claims payable (668,000) - 1,305,000 -
Total adjustments (721,620) (45,561) 30,781 1,137,635
Net cash provided by (used in) operating activities $ 1,826,447 $ (18,321) $ 567,204 $ (1,197,199) (Continued)
All Internal Service Funds
For the Year Ended June 30, 2025
City of San Mateo
Combining Statement of Cash Flows (Continued)
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Vehicle & Fleet &
Equipment Building
Replacement Maintenance Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 1,840,542 $ 5,563,043 $ 65,092,229 $ Cash payments to suppliers for goods and services (436,799) (3,960,436) (12,677,802) Cash payments to employees for services - (1,825,998) (50,738,454) Cash received from others 3,965 818 687,293
Net cash provided by (used in) operating activities 1,407,708 (222,573) 2,363,266

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers in 410,000 2,410,000 -
Transfers out (1,619,429) (3,619,429) -
Net cash provided by
noncapital financing activities (1,209,429) (1,209,429) -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grants and contributions 43,043 - 43,043
Proceeds from sale of capital assets 56,443 - 56,443
Acquisition of capital assets, net (1,048,674) (1,048,674) - Net cash (used in) capital and
related financing activities (949,188) (949,188) -
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received 466,775 1,524,585 -
Net cash provided by investing activities 466,775 1,524,585 - Net change in cash and cash equivalents (284,134) (222,573) 1,729,234 CASH AND CASH EQUIVALENTS:

Beginning of year 11,178,759 434,887 35,942,150
End of year $ 10,894,625 $ 212,314 $ 37,671,384
(Continued)
City of San Mateo
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2025
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Vehicle & Fleet &
Equipment Building
Replacement Maintenance Total

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

Operating income (loss) (13,069) $ (183,439) $ 580,388 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 1,306,362 5,159 1,311,521
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net - - (58,522)
Grants receivable (3,043) - (3,043)
Prepaid items, inventory, and deposits - (37,950) (37,950) Accounts payable 117,458 (55,271) (149,827)
Accrued payroll - 48,928 57,457
Deposits payable - - 26,242
Claims payable - - 637,000
Total adjustments 1,420,777 (39,134) 1,782,878
Net cash provided by (used in) operating activities $ 1,407,708 $ (222,573) $ 2,363,266 (Concluded)
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2025
City of San Mateo
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Fiduciary Funds - Custodial Funds
San Mateo Consolidated Fire Department Custodial Fund, accounts for assets that the City is holding for the San Mateo Consolidated Fire Department.

CFD 2008-1 Custodial Fund , accounts for assets that the City is holding for the Community Facilities District No. 2008- 01 for which the City is acting as an agent.

Other Custodial Fund , accounts for assets that the City is holding for other entities for which the City is acting as an agent.
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San Mateo
Consolidated
Fire Department CFD 2008-1 Other Total
ASSETS
Cash and investments 65,619 $ 3,580,564 $ 110,785 $ 3,756,968 $ Restricted cash and investments - 3,763,641 - 3,763,641 Accounts receivable - - 16,837 16,837
Total assets 7,344,205 65,619 127,622 7,537,446

LIABILITIES
Due to other governments 62,976 - 91,380 154,356
Total liabilities - 62,976 91,380 154,356

NET POSITION
Restricted for:

Individuals, organizations, and other governments 2,643 7,344,205 36,242 7,383,090 Total Net Position $ 7,344,205 2,643 $ 36,242 $ 7,383,090 $ City of San Mateo
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2025
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San Mateo
Consolidated
Fire Department CFD 2008-1 Other Total
ADDITIONS:

Fee collections for other governments 253,452 $ - $ 470,551 $ 724,003 $ Special Assessments for other governments 5,040,692 - - 5,040,692 Investment income - 166,373 - 166,373
Total additions 5,207,065 253,452 470,551 5,931,068
DEDUCTIONS:

Administration - 22,324 - 22,324
Payments on conduit bonds - principal - 1,140,000 - 1,140,000 Payments on conduit bonds - interest - 3,671,338 - 3,671,338 Payments to other organizations and governments 250,809 - 434,309 685,118 Total deductions 4,833,662 250,809 434,309 5,518,780
Changes in net position 373,403 2,643 36,242 412,288
NET POSITION:

Beginning of year 6,970,802 - - 6,970,802
End of year $ 7,344,205 2,643 $ 36,242 $ 7,383,090 $
City of San Mateo
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2025
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Fiduciary Funds - Private Purpose Trust Funds
RDA Obligation Retirement Fund (RORF), established in accordance with AB 1X 26, accounts for Redevelopment Property Tax Trust Fund amounts received after January 31, 2012 to pay for Recognized Obligation Payment Schedule (ROPS) items.

Successor Agency to RDA Merged Area Fund , a sub-fund of the RORF, accounts for assets and liabilities of the former RDA merged project area which were transferred to the Successor Agency upon RDA dissolution to be used for ROPS payments or redistributed to taxing entities.

Successor Agency to RDA Housing Fund , a sub-fund of the RORF, accounts for assets and liabilities of the former RDA housing set aside transferred to the Successor Agency upon RDA dissolution to be used for ROPS payments or redistributed to taxing entities.
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RDA Successor Agency Successor Agency
Retirement to RDA Merged to RDA
Obligation Area Housing Total
ASSETS
Cash and investments 5,278,336 $ - $ - $ 5,278,336 $
Restricted cash and investments - 1 - 1
Total assets 1 5,278,336 - 5,278,337

DEFERRED OUTFLOWS

OF RESOURCES
Deferred loss on refunding - 11,359 - 11,359
Total deferred outflows of resources 11,359 - - 11,359

LIABILITIES
Interest payable - 626,771 - 626,771
Long-term debt - due within one year 4,475,000 - - 4,475,000 Long-term debt - due in more than one year 28,026,174 - - 28,026,174 Total liabilities 33,127,945 - - 33,127,945

DEFERRED INFLOWS

OF RESOURCES
Deferred gain on refunding - 30,417 - 30,417
Total deferred inflows of resources 30,417 - - 30,417

NET POSITION
Restricted for dissolution of RDA 5,278,336 (33,147,002) - (27,868,666) Total Net Position (deficit) $ (33,147,002) 5,278,336 $ - $ (27,868,666) $ City of San Mateo
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Private Purpose Trust Funds
June 30, 2025
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RDA Successor Agency Successor Agency
Retirement to RDA Merged to RDA
Obligation Area Housing Total
ADDITIONS:

Investment income 1,091 $ - $ - $ 1,091 $
RDA property tax trust fund distribution 101,688 5,887,563 10,000 5,999,251 Total additions 5,887,563 102,779 10,000 6,000,342
DEDUCTIONS:

Administration - 10,000 10,000 20,000
Interest expense - 1,053,190 - 1,053,190
Total deductions 1,063,190 - 10,000 1,073,190
Changes in net position 4,824,373 102,779 - 4,927,152
NET POSITION (DEFICIT):

Beginning of year (37,971,375) 5,175,557 - (32,795,818) End of year $ (33,147,002) 5,278,336 $ - $ (27,868,666) $ City of San Mateo
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Private Purpose Trust Funds
For the Year Ended June 30, 2025
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Schedules of Assessments and Investment Fees and Related Expenditures South Bayfront Levee Improvement Project accounts for the revenues and expenditures of assessments imposed to finance the South Bayfront Levee Improvement Project.

South Trunk Sewer Impact Fee accounts for revenue and expenditures related to the development impact fee for the South Trunk area sewer improvements. The fee is imposed on all development and redevelopment served by the South Trunk line.

Child Care Development Impact Fee accounts for revenues and expenditures related to the child care development fee to fund child care facilities necessitated by commercial development.

Tree Impact Fee accounts for revenues and expenditures related to the tree replacement fee established on all development requiring approval of planning application, except for single-family dwelling design review applications, for the removal of existing trees on development sites.

Cable Television Impact Fee accounts for revenues and expenditures related to the cable television impact fee to fund public access community television.
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South
Bayfront Total
Levee South Child Care Cable Assessments
Improvement Trunk Sewer Development Tree Television and Impact Project Impact Fee Impact Fee Impact Fee Impact Fee Fees REVENUES:

Assessments $ - 537,868 $ - $ - $ - $ 537,868 $
Impact fees - - - 297,649 164,824 462,473
Interest income - 304,136 578,301 410,166 47,332 1,339,935 Total revenues 304,136 537,868 578,301 707,815 212,156 2,340,276 EXPENDITURES:

Capital outlay 7,074 - 1,018,866 97,366 41,371 1,164,677 Debt service 389,724 - - - - 389,724
Total expenditures - 396,798 1,018,866 97,366 41,371 1,554,401 Changes in
unexpended balances 304,136 141,070 (440,565) 610,449 170,785 785,875 UNEXPENDED BALANCES:

Beginning of year 865,623 2,444,489 1,862,221 1,132,343 1,352,406 7,657,082 End of year $ 1,169,759 2,585,559 $ 1,421,656 $ 1,742,792 $ 1,523,191 $ 8,442,957 $ City of San Mateo
General Capital Projects Fund
Schedule of Assessments and Impact Fees and Related Expenditures For the Year Ended June 30, 2025
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STATISTICAL SECTION
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Contents Page
Financial Trends 194
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity 206
These schedules contain information to help the reader assess the City's most significant local revenues source: property tax
Debt Capacity 210
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information 217
These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place.

Operating Information 219
These schedules contain service and infrastructure data to help the reader to understand how the information in the City's financial reports relates to the services the city provides and the activities it performs.

This part of the City of San Mateo's Annual Comprehensive Financial Reports presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial condition.

STATISTICAL SECTION (Unaudited)
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2016 2017 2018(1) 2019 2020
Governmental Activities
Net investment in capital assets 348,551,145 $ 361,295,211 $ 373,263,037 $ 374,808,638 $ 380,800,232 $ Restricted 42,628,946 43,004,559 56,180,410 56,993,128 58,615,106 Unrestricted (deficit) (25,485,083) (16,647,454) (27,694,719) (16,582,840) (22,039,326) Total Governmental Activities Net Position $ 365,695,008 $ 387,652,316 $ 401,748,728 $ 415,218,926 $ 417,376,012 Business-Type Activities
Net investment in capital assets $ 83,893,024 $ 112,410,305 $ 136,901,535 $ 137,297,898 $ 154,095,718 Restricted 9,457,948 17,976,147 3,019,163 1,127,518 1,143,604 Unrestricted (deficit) 20,791,916 (7,096,918) (2,674,687) 24,223,141 39,117,768 Total Business-Type Activities Net Position $ 114,142,888 $ 123,289,534 $ 137,246,011 $ 162,648,557 $ 194,357,090 Primary Government
Net investment in capital assets $ 432,444,169 $ 473,705,516 $ 510,164,572 $ 512,106,536 $ 534,895,950 Restricted 52,086,894 60,980,706 59,199,573 58,120,646 59,758,710 Unrestricted (deficit) (4,693,167) (23,744,372) (30,369,406) 7,640,301 17,078,442 Total Primary Government Net Position $ 479,837,896 $ 510,941,850 $ 538,994,739 $ 577,867,483 $ 611,733,102 Notes:
(1) Unrestricted net position included adjustment to reflect implementation of GASB 75 in FY2018.

Source: City of San Mateo Annual Comprehensive Financial Reports

FISCAL YEAR
City of San Mateo
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
194
346 of 1110
2021 2022 2023(1) 2024 2025(2)
Governmental Activities
Net investment in capital assets 392,070,528 $ 397,780,546 $ 384,115,038 $ 412,852,193 $ 407,405,337 $ Restricted 38,577,326 45,323,758 54,886,312 111,215,112 135,651,788 Unrestricted (deficit) (11,392,141) 6,233,558 12,405,371 (53,862,081) (65,191,059) Total Governmental Activities Net Position 419,255,713 $ 449,337,862 $ 451,406,721 $ 470,205,224 $ 477,866,066 $ Business-Type Activities
Net investment in capital assets 168,133,572 $ 135,235,423 $ 79,620,512 $ 205,982,094 $ 243,595,525 $ Restricted 1,143,852 33,375,069 92,240,461 - -
Unrestricted (deficit) 58,834,359 109,975,918 164,051,166 184,575,261 225,793,158 Total Business-Type Activities Net Position 228,111,783 $ 278,586,410 $ 335,912,139 $ 390,557,355 $ 469,388,683 $ Primary Government
Net investment in capital assets 560,204,100 $ 533,015,969 $ 463,735,550 $ 618,834,287 $ 651,000,862 $ Restricted 39,721,178 78,698,827 147,126,773 111,215,112 135,651,788 Unrestricted (deficit) 47,442,218 116,209,476 176,456,537 130,713,180 160,602,099 Total Primary Government Net Position 647,367,496 $ 727,924,272 $ 787,318,860 $ 860,762,579 $ 947,254,749 $ Notes:
(1) Unrestricted net position included adjustment to reflect implementation of GASB 96 in FY2023. (2) Unrestricted net position included adjustment to reflect implementation of GASB 101 in FY2025.

Source: City of San Mateo Annual Comprehensive Financial Reports

FISCAL YEAR
City of San Mateo
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
195
347 of 1110
2016 2017 2018 2019 2020
Expenses
Governmental activities:

General government $ 13,408,222 $ 15,288,834 $ 16,253,149 $ 22,520,951 $ 24,844,817 Community development 8,615,056 9,218,215 8,968,176 10,689,333 11,079,458 Public safety 56,518,491 66,098,015 78,040,802 72,388,649 84,968,332 Public works 19,194,348 19,454,397 22,900,784 25,294,822 26,353,672 Parks and recreation 14,715,076 17,688,663 17,723,370 18,589,445 18,827,857 Golf - - 2,413,326 - 2,363,389
Library 7,481,649 8,640,943 8,409,588 9,088,444 9,546,338 Interest and fiscal charges 1,563,149 1,603,120 1,282,632 1,545,181 1,967,739 Total governmental activities expenses 121,495,991 137,992,187 153,578,501 162,530,151 179,951,602 Business-type activities:

Sewer 29,446,279 27,650,895 28,541,139 30,979,524 39,159,040 Golf 2,925,638 2,699,895 3,119,828 - -
Storm - - - - -
Total business-type activities expenses 32,371,917 30,350,790 31,660,967 30,979,524 39,159,040 Total primary government expenses $ 168,342,977 153,867,908 $ 185,239,468 $ 193,509,675 $ 219,110,642 $ Program Revenues
Governmental activities:

Charges for Services:

General government 8,864,516 $ 4,460,496 $ 4,761,038 $ 4,850,552 $ 4,196,601 $ Community development 13,040,363 15,504,626 18,647,276 11,962,685 11,367,968 Public safety 4,963,005 5,460,041 5,859,462 4,873,368 6,334,734 Public works 3,204,712 7,078,959 8,816,371 7,908,636 10,140,356 Parks and recreation 4,026,981 5,733,587 4,416,286 4,427,073 3,158,517 Golf - - - 2,169,365 2,206,781
Library 376,099 384,442 425,676 418,247 395,001
Operating Grants and Contributions 4,920,003 4,855,791 6,527,822 7,091,483 7,613,730 Capital Grants and Contributions 17,519,113 7,404,767 12,254,621 11,235,278 10,814,961 ,, Total governmental activities program revenues 56,914,792 50,882,709 61,708,552 54,936,687 56,228,649 Business-type activities:

Charges for Services:

Sewer 31,349,390 31,790,037 41,737,548 51,981,922 58,741,767 Golf 2,259,273 2,155,822 2,361,164 - -
Storm - - - - -
Capital Grants and Contributions 9,648,484 4,559,627 2,628,892 1,231,712 7,290,894 Total business-type activities program revenues 43,257,147 38,505,486 46,727,604 53,213,634 66,032,661 Total primary government program revenues $ 89,388,195 100,171,939 $ 108,436,156 $ 108,150,321 $ 122,261,310 $ Net (Expense)/Revenue
Governmental activities (64,581,199) $ (87,109,478) $ (91,869,949) $ (107,593,464) $ (123,722,953) $ Business-type activities 10,885,230 8,154,696 15,066,637 22,234,110 26,873,621 Total primary government net expense $ (78,954,782) (53,695,969) $ (76,803,312) $ (85,359,354) $ (96,849,332) $ Source: City of San Mateo Annual Comprehensive Financial Reports City of San Mateo
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)

FISCAL YEAR
196
348 of 1110
2021 2022 2023 2024 2025
Expenses
Governmental activities:

General government $ 22,566,708 $ 23,459,894 $ 28,633,018 $ 27,773,248 $ 35,035,480 Community development 11,362,295 20,402,608 16,765,437 14,269,937 14,329,357 Public safety 88,274,410 66,993,033 94,267,213 92,903,796 97,594,346 Public works 22,560,152 21,712,677 28,996,164 31,088,776 30,139,286 Parks and recreation 17,581,661 16,497,215 20,923,090 24,598,631 24,557,407 Golf 2,406,028 2,368,719 2,505,214 - -
Library 8,797,338 8,678,548 9,421,539 10,598,001 10,671,815 Interest and fiscal charges 2,674,930 2,447,923 2,494,361 2,407,407 2,368,152 Total governmental activities expenses 176,223,522 162,560,617 204,006,036 203,639,796 214,695,843 Business-type activities:

Sewer 40,969,271 41,868,215 41,833,626 45,059,021 49,007,101 Golf - - - - -
Storm - - - 678,770 -
Total business-type activities expenses 40,969,271 41,868,215 41,833,626 45,059,021 49,685,871 Total primary government expenses $ 204,428,832 217,192,793 $ 245,839,662 $ 248,698,817 $ 264,381,714 $ Program Revenues
Governmental activities:

Charges for Services:

General government 6,305,379 $ 7,754,336 $ 6,404,657 $ 6,755,941 $ 6,846,213 $ Community development 11,277,683 10,420,500 13,320,594 12,636,122 10,777,794 Public safety 2,402,026 2,179,473 3,166,616 4,132,856 2,992,438 Public works 7,117,981 8,860,490 7,540,418 8,506,152 12,960,751 Parks and recreation 1,010,881 2,921,700 3,512,400 7,662,922 7,748,286 Golf 3,129,139 3,529,967 3,105,744 - -
Library 270,043 314,628 318,769 381,127 360,115
Operating Grants and Contributions 19,005,126 16,397,540 9,841,723 11,003,457 13,313,488 Capital Grants and Contributions 9,354,286 9,085,257 5,390,848 13,247,974 4,419,461 Total governmental activities program revenues 59,872,544 61,463,891 52,601,769 64,326,551 59,418,546 Business-type activities:

Charges for Services:

Sewer 67,962,290 71,491,119 77,987,677 81,333,394 84,891,876 Golf - - - - -
Storm - - - - 3,859,759
Capital Grants and Contributions 5,931,349 21,355,870 15,487,045 8,179,541 25,614,442 Total business-type activities program revenues 73,893,639 92,846,989 93,474,722 89,512,935 114,366,077 Total primary government program revenues $ 154,310,880 133,766,183 $ 146,076,491 $ 153,839,486 $ 173,784,623 $ Net (Expense)/Revenue
Governmental activities (116,350,978) $ (101,096,726) $ (151,404,267) $ (139,313,245) $ (155,277,297) $ Business-type activities 32,924,368 50,978,774 51,641,096 44,453,914 64,680,206 Total primary government net expense $ (50,117,952) (83,426,610) $ (99,763,171) $ (94,859,331) $ (90,597,091) $ Source: City of San Mateo Annual Comprehensive Financial Reports City of San Mateo
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)

FISCAL YEAR
197
349 of 1110
2016 2017 2018 2019 2020
General Revenues and Other Changes in Net Position
Government activities:

Taxes
Property taxes $ 49,821,722 $ 52,989,559 $ 58,137,331 $ 63,899,034 $ 67,106,048 Sales taxes 27,458,762 26,001,431 26,313,958 28,606,235 26,958,595 Property transfer tax 9,894,291 12,179,016 11,778,074 13,918,129 9,137,370 Other taxes 14,503,661 14,536,828 14,777,396 14,947,968 11,173,135 Franchise taxes 3,143,082 3,142,369 3,208,096 3,134,906 3,170,550 Motor vehicle taxes 416,222 55,990 64,442 - -
Investment income (loss) 2,469,425 978,899 1,521,257 7,180,752 7,259,659 Other - GASB 68 Adjustment 344,425 - - - -
Other revenues - 32,694 66,005 42,081 64,312
Transfers (3,020,196) (850,000) (525,000) (1,788,676) - 7,274,984 - - - -
- - (8,876,767) - -
Total Governmental activities: 112,306,378 109,066,786 115,341,559 121,063,662 124,869,669 Business-type activities:

Investment income 524,455 141,950 189,713 1,379,769 5,845,282 Gain (Loss) on sale of capital assets - - - - -
Miscellaneous revenues - - - - -
Transfers 3,020,196 850,000 525,000 1,788,676 -
Total business-type activities 3,544,651 991,950 714,713 3,168,445 5,845,282 Total primary government $ 110,058,736 115,851,029 $ 116,056,272 $ 124,232,107 $ 130,714,951 $ Change in Net Position
Governmental activities 47,725,179 $ 21,957,308 $ 23,471,610 $ 13,470,198 $ 1,146,716 $ Business-type activities 14,429,881 9,146,646 15,781,350 25,402,555 32,718,903 Total primary government $ 31,103,954 62,155,060 $ 39,252,960 $ 38,872,753 $ 33,865,619 $ Source: City of San Mateo Annual Comprehensive Financial Reports Last Ten Fiscal Years
(accrual basis of accounting)
Special Item: Transfer of fire activities
Special Item: Transfer of properties from
Successor Agency

FISCAL YEAR
City of San Mateo
Changes in Net Position (Continued)
198
350 of 1110
2021 2022 2023 2024 2025
General Revenues and Other Changes in Net Position
Government activities:

Taxes
Property taxes $ 66,631,563 $ 74,796,572 $ 83,298,878 $ 81,331,244 $ 85,234,112 Sales taxes 27,948,874 33,408,980 34,283,362 32,380,449 31,672,809 Property transfer tax 11,783,952 14,344,715 7,418,099 8,634,762 17,243,318 Other taxes 7,439,757 11,445,378 16,356,131 14,976,125 12,836,155 Franchise taxes 3,033,639 3,117,140 3,627,304 3,403,374 3,485,831 Motor vehicle taxes - - - - -
Investment income (loss) 488,757 (6,317,294) 4,554,367 15,375,641 16,073,461 Other - GASB 68 Adjustment - - - - -
Other revenues 904,137 383,384 2,140,985 2,010,153 1,104,241 Transfers - 1,794,000 - - -
- - - - -
- - - - -
Total Governmental activities: 118,230,679 131,178,875 153,473,126 158,111,748 167,649,927 Business-type activities:

Investment income 851,242 (602,477) 7,176,108 9,342,754 13,252,318 Gain (Loss) on sale of capital assets (22,292) 98,330 (101,329) - 2,825 Miscellaneous revenues 1,375 403,854 - 848,548 1,210,069 Transfers - (1,794,000) - - -
Total business-type activities 830,325 (504,147) 5,684,633 10,191,302 14,465,212 Total primary government $ 130,674,728 119,061,004 $ 159,157,759 $ 168,303,050 $ 182,115,139 $ Change in Net Position
Governmental activities 1,879,701 $ 30,082,149 $ 2,068,859 $ 18,798,503 $ 12,372,630 $ Business-type activities 33,754,693 50,474,627 57,325,729 54,645,216 79,145,418 Total primary government $ 80,556,776 35,634,394 $ 59,394,588 $ 73,443,719 $ 91,518,048 $ Source: City of San Mateo Annual Comprehensive Financial Reports Special Item: Transfer of properties from
Successor Agency
Special Item: Transfer of fire activities
City of San Mateo
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)

FISCAL YEAR
199
351 of 1110
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200
352 of 1110
Property
Fiscal Property Sales Transfer Franchise Other
Year Tax Tax Tax Tax Taxes Total
2016 49,821,722 $ 27,458,762 $ 9,894,291 $ 3,143,082 $ 14,919,883 $ 105,237,740 $ 2017 52,989,559 26,001,431 12,179,016 3,142,369 14,592,818 108,905,193 2018 58,137,331 26,313,958 11,778,074 3,208,096 14,841,838 114,279,297 2019 63,899,034 28,606,235 13,918,129 3,134,906 14,947,968 124,506,272 2020 67,106,048 26,958,595 9,137,370 3,170,550 11,173,135 117,545,698 2021 66,631,563 27,948,874 11,783,952 3,033,639 7,439,757 116,837,785 2022 74,796,572 33,408,980 14,344,715 3,117,140 11,445,378 137,112,785 2023 83,298,878 34,283,362 7,418,099 3,627,304 16,356,131 144,983,774 2024 81,331,244 32,380,449 8,634,762 3,403,374 14,976,125 140,725,954 2025 85,234,112 31,672,809 17,243,318 3,485,831 12,836,155 150,472,225 Source: City of San Mateo Annual Comprehensive Financial Reports (accrual basis of accounting)
Last Ten Fiscal Years
Governmental Activities Tax Revenues By Source
City of San Mateo
201
353 of 1110
2016 2017 2018 2019 2020
General Fund
Nonspendable fund balance $ 93,968 $ 146,668 $ 1,365,781 $ 1,138,335 $ 801,607 Restricted fund balance - - - - -
Committed fund balance - 1,310,590 - 2,382,262 1,370,873 Assigned fund balance 653,902 1,151,152 983,063 708,521 670,609 Unassigned fund balance 57,850,140 65,807,692 71,844,796 83,958,171 82,719,189 Total General Fund $ 58,598,010 $ 67,105,512 $ 75,504,230 $ 88,187,289 $ 85,562,278 All Other Governmental Funds
Nonspendable fund balance $ - $ - $ 4,206 $ - $ -
Restricted fund balance 42,628,946 42,468,316 54,997,971 55,140,874 107,881,837 Committed fund balance 63,490,793 66,261,696 66,085,830 70,357,550 75,420,851 Assigned fund balance - - - - -
Unassigned fund balance (deficit) - - - - -
Total all other Governmental Funds $ 106,119,739 $ 108,730,012 $ 121,088,007 $ 125,498,424 $ 183,302,688

Source: City of San Mateo Annual Comprehensive Financial Reports

FISCAL YEAR
City of San Mateo
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
202
354 of 1110
2021 2022 2023 2024 2025
General Fund
Nonspendable fund balance $ 329,193 $ 357,245 $ 284,396 $ 304,759 $ 284,638 Restricted fund balance - 599,425 - 550,000 575,000
Committed fund balance 1,370,873 16,294,331 - - -
Assigned fund balance 1,097,978 - 9,304,494 11,443,226 11,747,524 Unassigned fund balance 90,258,189 93,702,456 107,690,904 105,659,356 106,931,699 Total General Fund $ 91,958,255 $ 111,452,010 $ 117,879,219 $ 117,957,341 $ 119,538,861 All Other Governmental Funds
Nonspendable fund balance $ - $ 9,000 $ - $ - $ 3,502
Restricted fund balance 71,611,963 77,144,719 128,358,271 131,583,602 137,732,148 Committed fund balance 93,093,835 65,881,489 - - -
Assigned fund balance - 17,200,801 - 26,595,669 21,908,617 Unassigned fund balance (deficit) (586,982) (1,401,910) - (1,753,501) - Total all other Governmental Funds $ 164,118,816 $ 141,633,298 $ 145,559,072 $ 158,179,271 $ 157,890,766

FISCAL YEAR
Source: City of San Mateo Annual Comprehensive Financial Reports City of San Mateo
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
203
355 of 1110
2016 2017 2018 2019 2020
Revenues:

Property taxes $ 49,821,722 $ 52,989,555 $ 58,137,331 $ 63,899,035 $ 67,106,048 Sales taxes 27,458,762 26,001,428 26,313,958 28,606,235 26,958,596 Other taxes 27,947,256 29,904,204 29,818,008 32,051,159 23,481,055 Licenses, building and other permits 12,481,519 13,986,765 16,829,698 9,820,297 8,511,610 Fines, forfeitures and Penalties 1,608,517 2,347,508 1,983,069 2,361,048 1,486,473 Intergovernmental revenues 10,139,448 10,514,086 10,081,168 13,900,475 13,455,252 Charges for services 11,642,713 10,994,505 11,865,030 13,006,381 12,140,217 Investment income (loss) 2,016,000 436,583 1,274,997 6,257,565 6,451,349 Indirect and in-lieu fees - - 1,317,331 - 710,540
Assessment and garbage collection surcharge 8,000,287 2,405,534 2,591,689 1,887,074 1,952,167 Parking meter and lease revenue 2,881,193 3,113,739 5,334,641 4,320,920 5,960,255 Impact fees 4,274,248 3,747,065 4,021,226 1,754,337 4,471,088 Capital contributions - - 375,000 750,000 750,000
Other revenues 3,438,927 3,751,388 3,851,650 5,140,943 4,440,498 Total revenues 161,710,592 160,192,360 172,477,465 185,072,800 177,875,148 Expenditures:

General government 13,389,976 11,823,438 12,631,562 13,248,604 14,127,919 Community development 7,283,445 8,382,090 8,968,166 9,870,728 9,903,606 Public safety 58,605,898 63,623,621 68,708,919 63,971,508 69,607,595 Public works 7,128,676 8,585,107 10,030,818 10,525,838 11,194,667 Parks and recreation 13,190,936 14,666,422 14,967,718 15,563,445 15,177,801 Golf - - 2,152,691 - 2,210,391
Library 6,099,700 6,499,489 6,721,084 7,421,137 7,260,024 Non-departmental 1,250,000 2,891,155 3,001,379 5,726,983 6,535,562 Capital outlay 20,745,215 28,829,906 18,367,591 22,865,146 30,549,652 Debt service:

Principal 1,939,637 2,019,637 7,842,077 2,128,016 2,742,918 Interest and fiscal charges 1,656,297 1,702,963 1,705,078 1,624,137 1,554,488 Cost of issuance - - - - 380,166
Total expenditures 131,289,780 149,023,828 152,944,392 155,098,233 171,244,789 Excess of revenues
over (under) expenditures 30,420,812 11,168,532 19,533,073 29,974,567 6,630,359 Other Financing Sources (Uses):

Proceeds from debt issuance - - - 47,595,599 -
Premium - - - 8,068,164 -
Debt refunding - payment to escrow - - - (4,006,995) -
Proceeds from loans 14,027 746,896 2,157,843 - -
Proceeds from sale of capital assets - - - - 713,154
Inception of lease liability - - - - -
Inception of subscription liability - - - - -
Transfers in 13,083,222 14,117,848 20,890,354 12,938,471 21,124,557 Transfers out (14,033,222) (14,915,501) (21,824,557) (12,995,487) (24,945,585) Total other financing sources (uses) (935,973) (50,757) 1,223,640 (57,016) 48,548,894 Special Item: Transfer of fire activities - - (12,824,075) - - Net change in fund balances $ 29,484,839 $ 11,117,775 $ 20,756,713 $ 17,093,476 $ 55,179,253

3.11% 3.01% 6.89% 2.82% 2.98%
Notes:

Source: City of San Mateo Annual Comprehensive Financial Reports

FISCAL YEAR
City of San Mateo
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Debt Service as a percentage of noncapital expenditures (1)
(1) Non-capital expenditures is the difference between total expenditures and capital outlay reported on Government-wide Statement of Activities 204
356 of 1110
2021 2022 2023 2024 2025
Revenues:

Property taxes $ 66,631,563 $ 74,796,572 $ 83,298,878 $ 81,331,244 $ 85,234,112 Sales taxes 27,948,874 33,408,980 34,283,362 32,380,449 31,672,809 Other taxes 22,257,348 28,907,233 27,140,943 26,771,455 33,565,303 Licenses, building and other permits 8,123,453 6,528,252 8,169,947 7,345,890 7,575,963 Fines, forfeitures and Penalties 2,247,808 2,201,172 2,909,055 3,242,892 6,944,309 Intergovernmental revenues 19,888,509 23,286,197 14,501,361 13,522,487 16,335,217 Charges for services 11,638,776 16,758,036 19,016,452 21,178,777 19,461,510 Investment income (loss) 411,387 (5,494,064) 3,403,037 13,744,895 14,255,667 Indirect and in-lieu fees - - - - -
Assessment and garbage collection surcharge 6,268,685 2,248,303 2,702,720 2,897,760 2,310,762 Parking meter and lease revenue 2,023,435 5,807,293 3,424,971 3,199,677 3,236,263 Impact fees 1,741,192 613,890 147,064 - -
Capital contributions 750,000 750,000 750,461 9,764,955 582,412 Other revenues 6,513,514 5,030,830 4,622,308 5,340,645 4,289,737 Total revenues 176,444,544 194,842,694 204,370,559 220,721,126 225,464,064 Expenditures:

General government 14,777,676 14,824,775 14,095,593 15,524,365 17,100,226 Community development 10,450,200 20,931,630 14,508,302 13,862,340 13,975,563 Public safety 74,041,289 76,979,872 81,196,170 87,526,868 92,341,093 Public works 10,555,345 11,410,240 13,130,985 15,607,016 16,129,097 Parks and recreation 14,341,093 16,260,067 17,175,614 21,136,909 22,133,257 Golf 2,406,028 2,368,719 2,505,214 - -
Library 7,063,780 7,645,003 7,836,173 8,619,895 9,258,253 Non-departmental 7,357,090 8,244,606 9,662,288 9,968,106 12,215,105 Capital outlay 42,765,863 31,945,962 29,334,514 27,615,436 45,395,401 Debt service:

Principal 3,411,945 4,691,724 5,668,626 5,956,172 6,368,684 Interest and fiscal charges 3,412,560 2,950,846 2,869,645 2,806,831 2,714,517 Cost of issuance - - - - -
Total expenditures 190,582,869 198,253,444 197,983,124 208,623,938 237,631,196 Excess of revenues
over (under) expenditures (14,138,325) (3,410,750) 6,387,435 12,097,188 (12,167,132) Other Financing Sources (Uses):

Proceeds from debt issuance 1,525,675 - - - -
Premium - - - - -
Debt refunding - payment to escrow - - - - -
Proceeds from loans - - - - -
Proceeds from sale of capital assets - - 15,066 21,354 5,901 Inception of lease liability - - - 11,474,769 -
Inception of subscription liability - 2,862,579 - 1,076,231 770,051 Transfers in 21,438,281 14,919,215 23,783,665 31,096,445 21,270,763 Transfers out (21,613,526) (14,500,228) (22,695,762) (31,592,897) (20,061,334) Total other financing sources (uses) 1,350,430 418,987 3,965,548 601,133 13,460,150 Special Item: Transfer of fire activities - - - - -
Net change in fund balances $ (12,787,895) $ (2,991,763) $ 10,352,983 $ 12,698,321 $ 1,293,018

4.17% 4.90% 5.14% 4.85% 4.74%
Notes:

Source: City of San Mateo Annual Comprehensive Financial Reports

FISCAL YEAR
City of San Mateo
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
(1) Non-capital expenditures is the difference between total expenditures and capital outlay reported on Government-wide Statement of Activities.

Debt Service as a percentage of noncapital expenditures (1)
205
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Fiscal
Year
End
Residential
Property
Commercial
Property
Industrial
Property
Other
Property (1)
Unsecured
Property
Less TaxExempt
Property
Taxable
Assessed Value
Total
Direct Tax
Rate (2)
Estimated
Actual Value (3)
Factor of
Taxable
Assessed
Value (3)
2016 16,649,492 $ $ 3,454,897 $ 176,544 $ 324,490 $ 760,591 $ 348,736 $ 21,017,279 0.18% 40,006,118 $ 1.9035 2017 17,909,339 3,823,284 180,072 574,686 738,320 591,188 22,634,512 0.18% 44,026,273 1.9451 2018 19,417,451 4,213,927 187,130 598,899 710,584 587,446 24,540,546 0.18% 48,683,633 1.9838 2019 20,830,053 4,927,490 197,026 547,948 774,755 670,274 26,606,997 0.18% 54,298,177 2.0407 2020 22,332,343 5,423,015 213,692 532,710 847,426 707,556 28,641,629 0.18% 55,884,822 1.9512 2021 23,744,131 6,182,033 230,600 591,123 796,824 744,934 30,799,777 0.18% 51,914,472 1.6855 2022 24,687,992 6,260,358 237,818 712,697 733,747 750,172 31,882,440 0.18% 62,404,646 1.9573 2023 26,725,006 6,912,012 250,071 639,168 747,059 801,890 34,471,426 0.18% 67,076,627 1.9459 2024 28,087,540 7,379,284 274,663 670,178 783,613 843,621 36,351,657 0.18% 64,202,152 1.7661 2025 29,204,101 7,677,307 483,398 792,215 778,620 844,130 38,091,511 0.18% 67,792,376 1.7797 2) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 12-001. Rates are not adjusted for ERAF.

Source: County Assessor data,Source: Neumo / MuniServices, LLC City of San Mateo
Last Ten Fiscal Years
(amount expressed in thousands)
Assessed Value and Estimated Actual Value of Taxable Property Notes:
1) Other property includes state unitary value of $5,560,213. 3) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values. 206
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Taxpayer
Taxable
Value Rank
Percent of
Total City
Taxable
Value
Taxable
Value Rank
Percent of
Total City
Taxable
Value
Bay Meadows Station 5 Investors LLC $ 1,144,188,590 1 3.00% Essex Portfolio Lp 630,287,503 2 1.65%
Hsc Property Owner LLC 604,784,520 3 1.59%
Franklin Templeton Corp Svcs Inc 479,292,299 4 1.26% $ 265,295,562 1 1.26% 2000 Sierra Point Parkway LLC 349,966,766 5 0.92%
1825 Sg Corporation 294,190,812 6 0.77%
Hg Clearview Owner LLC 242,097,280 7 0.64%
San Mateo Bay Center 2 LLC 240,673,754 8 0.63%
Asn Bay Meadows I LLC & Bay Meadows Ii LLC 9 0.62% 200,627,020 236,624,276 4 0.95% Rakuten Chw LLC 204,345,887 10 0.54%
Sobrato Interests 3 234,765,722 2 1.12%
Essex Hillsdale Garden Apts 221,502,309 3 1.05%
Bohannon Dev Co 5 0.87% 183,210,755
Hudson Peninsula Office Prk Ll 147,876,897 6 0.70%
Rp Smbc Owner LLC 7 0.61% 128,500,000
Rar2 Clearview 8 0.61% 128,007,490
Bre Properties Inc 9 0.58% 121,899,402
Park Place Realty Holding Co I 119,100,000 10 0.57%
Total Top 10 Taxpayers 4,426,451,687 11.62% 1,750,785,157 8.33% Total Taxable Value 38,091,510,451 $ 100.00% 21,017,279,296 $ 100.00% Source: Neumo / MuniServices, LLC
City of San Mateo
Principal Property Taxpayers
Current Year and Nine Years Ago
2025 2016
207
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2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Basic City and County Levy
CITY OF SAN MATEO 0.1761 0.1761 0.1761 0.1761 0.1761 0.1761 0.1761 0.1761 0.1761 0.1761

OTHER SAN MATEO
COUNTY AGENCIES 0.8239 0.8239 0.8239 0.8239 0.8239 0.8239 0.8239 0.8239 0.8239 0.8239 TOTAL 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Override Assessments
S M CTY DEBT-LIB. PROJECT 0.0102 0.0090 0.0084 0.0077 0.0071 0.0067 0.0064 0.0060 0.0057 0.0030 S M FOSTER CITY SERIES Q - - - - - 0.0022 0.0035 0.0015 0.0159 0.0125

SM FC EL BD REFUND SER - - - - - - - - - -
SM FOSTER CITY 2005 REF 0.0197 0.0156 0.0162 0.0170 0.0042 - - - - - SM FC 2012 GO REF Ser 0 0.0069 0.0060 0.0056 0.0052 0.0050 - - - - - SM FC GO BOND 08 ELEC 0.0082 0.0154 0.0151 0.0146 0.0140 0.0073 0.0053 0.0086 - - SM FC GO BOND 2014 0.0006 0.0002 0.0003 0.0003 0.0011 0.0013 0.0014 0.0013 - - SM FC GO BOND 2015 0.0048 0.0174 0.0170 0.0159 0.0194 0.0151 0.0173 0.0159 0.0007 0.0099 SM FC GO BOND ELECT 202 - - - - - - - - 0.0285 0.0274
SM FC GO BD 2020 REFUND - - - - - 0.0203 0.0390 0.0340 0.0114 0.0112 SAN MATEO HIGH 2017 GO - - - 0.0020 0.0016 0.0015 0.0014 0.0020 0.0019 0.0042 SAN MATEO HIGH BD SER 2 0.0064 0.0066 0.0065 0.0063 0.0063 0.0021 - 0.0049 0.0036 0.0018 SAN MATEO UN HIGH BND S 0.0063 0.0063 0.0063 0.0047 0.0036 0.0061 0.0061 0.0022 0.0022 0.0021 SAN MATEO HIGH RFND. SER - - - - - 0.0044 0.0247 0.0038 0.0033 - SAN MATEO HIGH 2012 GO 0.0088 0.0106 0.0105 0.0115 0.0109 0.0019 0.0046 0.0026 0.0025 - SAN MATEO HIGH 2016 GO - - 0.0025 0.0020 0.0018 0.0061 0.0036 0.0069 0.0096 0.0117 SAN MATEO HIGH 2019 GO - - - - - 0.0025 0.0023 0.0020 0.0019 0.0048 SAN MATEO HIGH 2019 REF - - - - - 0.0020 0.0061 0.0015 0.0014 0.0013 SAN MATEO HIGH 2022 GO - - - - - - - 0.0021 0.0017 0.0016 SM JR COLLEGE BD 2002 0.0012 0.0019 0.0019 0.0018 0.0019 0.0019 0.0020 0.0016 0.0017 0.0017 SM JR COLL BOND SER 200 - - - - - 0.0018 0.0019 0.0017 0.0016 0.0017 SM JR COLL BOND 2001 SE 0.0008 0.0006 0.0007 0.0007 0.0007 0.0007 0.0007 0.0006 0.0007 0.0006 SM JR COLL BOND 2006 SE 0.0039 0.0037 0.0036 0.0035 0.0033 0.0032 0.0031 0.0026 0.0021 0.0014 SM JR COLL BOND 2014 - 0.0029 0.0027 0.0024 0.0018 0.0017 - 0.0003 0.0012 - SM JR COLL BOND 2015 - 0.0071 0.0066 0.0012 0.0011 0.0012 - 0.0002 0.0002 0.0003 SAN MATEO COMM COLL 200 0.0036 0.0085 0.0080 0.0079 0.0042 0.0037 0.0040 0.0039 0.0040 0.0040 SAN MATEO HIGH ELEC 0.0251 0.0180 0.0175 0.0142 0.0143 0.0183 - 0.0224 0.0195 0.0170 SM JR COLL BOND REF 201 0.0155 - - - - 0.0025 0.0019 - - - SAN MATEO COMM COLL - - - - 0.0035 - 0.0043 0.0035 0.0033 0.0040 SM JR COLL ELECT 2014 - - - - 0.0088 0.0036 0.0039 0.0040 0.0035 0.0033 SM JR COLL 2018 REF BOND - - - - 0.0007 0.0005 0.0005 0.0005 0.0004 0.0004 SM JR COLL 2019 REF BOND - - - - 0.0006 0.0005 0.0004 0.0004 0.0003 0.0004 TOTAL 0.1220 0.1298 0.1294 0.1189 0.1159 0.1191 0.1444 0.1370 0.1288 0.1263 TOTAL TAX RATE 1.1220 1.1294 1.1189 1.1159 1.1191 1.1298 1.1444 1.1370 1.1288 1.1263 Sources: County Auditor/Controller data, Neumo / MuniServices, LLC

FISCAL YEAR
City of San Mateo
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate expressed in percentage)
208
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Fiscal
Year Total Tax Delinquent
Ended Levied for Collected Percentage Tax Collected Percentage June 30 Fiscal Year (1) Amount (2) of Levy Collections (3) Amount of Levy (4) 2016 49,821,722 $ 49,821,722 $ 100.00% n/a 49,821,722 $ 100.00% 2017 52,989,556 52,989,556 100.00% n/a 52,989,556 100.00% 2018 58,146,288 58,137,331 99.98% n/a 58,137,331 99.98% 2019 63,899,034 63,899,034 100.00% n/a 63,899,034 100.00% 2020 67,106,048 67,106,048 100.00% n/a 67,106,048 100.00% 2021 66,631,560 66,631,560 100.00% n/a 66,631,560 100.00% 2022 74,796,572 74,796,572 100.00% n/a 74,796,572 100.00% 2023 83,298,878 83,298,878 100.00% n/a 83,298,878 100.00% 2024 81,331,244 81,331,244 100.00% n/a 81,331,244 100.00% 2025 85,234,112 85,234,112 100.00% n/a 85,234,112 100.00% Notes:

Source: County of San Mateo
(2) Former redevelopment agency tax increments were excluded starting February 1, 2012, and subsequent fiscal years. (4) Years of lower collection are due to weak housing market and assessed value appeals.

Fiscal Year of the Levy
(1) The data in this table includes the basic and supplemental city property taxes and subventions, debt service tax and the Redevelopment Agency tax increments, ERAF refunds, and property tax in-lieu of motor vehicle fees. (3) San Mateo County assesses properties and it bills, collects, and distributes property taxes to all taxing entities, including the City. Under State law, known as the Teeter Plan, the county remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Only secured taxes will be paid under the Teeter Plan.

Total Collections To Date
Collected Within the
City of San Mateo
Property Tax Levies and Collections
Last Ten Fiscal Years
209
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Governmental Activities
General
Fiscal Obligation Revenue Loans Lease Subscription Total Year Bonds Bond Payable Liability Liability Governmental 2016 26,268 $ 26,774 $ 193 $ - $ - $ 53,235 $
2017 24,920 26,026 865 - - 51,811
2018 23,528 19,512 2,936 - - 45,976
2019 22,086 25,408 2,728 86 - 50,308
2020 20,584 74,356 4,323 29 - 99,292
2021 19,032 72,379 5,501 - - 96,912
2022 17,410 69,888 4,880 - - 92,178
2023 15,733 67,394 4,285 1,054 3,473 91,939
2024 13,986 64,801 3,689 442 3,651 86,569
2025 12,168 62,088 3,090 11,067 2,716 91,129
Notes:

Source: City of San Mateo Annual Comprehensive Financial Reports Details regarding the City's outstanding debt can be found in the notes to the financial statements.

City of San Mateo
(amounts expressed in thousands, except per capita amount) Last Ten Fiscal Years
Ratios of Outstanding Debt by Type
Former Redevelopment Agency Bonds were excluded in fiscal year 2012 and subsequent fiscal years.

Golf bond was included in Governmental Activities Revenue Bond effective fiscal year 2019 (when Golf operation was transferred to General Fund) Capital lease payable was included in Governmental Activities capital lease payable effective fiscal year 2019 (when Golf operation was transferred to General Fund) 210
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Business-Type Activities
Total Percentage Redevelopment County
Fiscal Sewer Loans Golf Lease Subscription Total Primary of Personal Per Tax Allocation CDBG Year Bonds Payable Bond Liability Liability Business-Type Government Income Capita Bond Loan 2016 $ 59,867 $ 11,000 7,095 $ $ - $ - 77,962 $ $ 131,197 2.45% $ 1,288 72,202.45 $ $ - 2017 58,244 5,000 6,710 209 - 70,163 121,974 2.12% 1,187 68,400 - 2018 56,572 5,000 6,572 142 - 68,286 114,262 1.88% 1,112 63,395 - 2019 338,126 - - - - 338,126 388,434 6.17% 3,788 59,095 - 2020 334,752 - - - - 334,752 434,044 6.89% 4,230 55,045 - 2021 331,296 - - - - 331,296 428,208 6.30% 4,175 50,875 - 2022 635,380 - - - - 635,380 727,558 9.23% 7,030 46,546 - 2023 619,136 - - 75 - 619,211 711,150 7.75% 6,883 42,046 - 2024 318,566 295,479 - 38 - 614,083 700,652 6.83% 6,779 37,371 - 2025 314,737 374,884 - - 149 689,770 780,899 6.99% 7,486 32,501 - Notes:

Former Redevelopment Agency Bonds were excluded in fiscal year 2012 and subsequent fiscal years.

Golf bond was included in Governmental Activities Revenue Bond effective fiscal year 2019 (when Golf operation was transferred to General Fund) Source: City of San Mateo Annual Comprehensive Financial Reports Capital lease payable was included in Governmental Activities capital lease payable effective fiscal year 2019 (when Golf operation was transferred to General Fund)
City of San Mateo
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) Fiduciary Funds
Details regarding the City's outstanding debt can be found in the notes to the financial statements. 211
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Percentage
General Less: Amount of Total Taxable
Fiscal Obligation Available in Assessed
Year Bonds Debt Svc Fund Total (net) Value Per Capita
2016 26,268 $ 3,642 $ 22,626 $ 0.11% 220 $
2017 24,920 4,026 20,894 0.09% 202
2018 23,528 4,455 19,073 0.08% 183
2019 22,086 4,960 17,126 0.06% 164
2020 20,584 5,340 15,244 0.05% 148
2021 19,032 5,701 13,331 0.04% 129
2022 17,410 5,934 11,481 0.04% 111
2023 15,733 6,661 9,072 0.02% 88
2024 13,986 7,591 6,411 0.02% 62
2025 12,168 7,483 4,685 0.01% 45
Source: City of San Mateo Annual Comprehensive Financial Reports Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Former Redevelopment Agency Bonds were excluded in fiscal year 2012 and subsequent fiscal years.

City of San Mateo
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) Notes:
212
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2024-25 Assessed Valuation: $ 38,197,755,051
Total Debt % City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 Applicable(1) Debt 6/30/2025 San Mateo Community College District 655,171,697 $ 11.73% $ 76,858,192 San Mateo Union High School District 668,248,421 33.92% 226,649,817 Sequoia Union High School District 449,512,000 0.53% 2,386,909 Belmont-Redwood Shores School District 124,104,335 3.64% 4,522,362 Belmont-Redwood Shores School District Belmont School Facilities Improvement District 38,785,685 6.33% 2,453,582 Hillsborough School District 134,153,355 0.00% 1,342
San Mateo-Foster City School District 508,668,474 68.70% 349,450,155 City of San Mateo 12,168,641 100% 12,168,641 (2)
City of San Mateo Community Facilities District No. 2008-1 70,210,000 100% 70,210,000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 2,661,022,608 $ 744,701,000 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Mateo County General Fund Obligations $ 530,970,772 11.73% $ 62,288,181 San Mateo County Board of Education Certificates of Participation 5,330,000 11.73% $ 625,262 Belmont-Redwood Shores School District General Fund Obligations 4,494,140 3.64% $ 163,766 Highlands Recreation District General Fund Obligations 1,731,000 0.01% $ 242 City of San Mateo Lease Revenue and Revenue Bonds 15,402,268 100% $ 15,402,268 (2) San Mateo-Foster City Public Finance Authority Revenue Bonds 46,685,463 100% $ 46,685,463 (2) City of San Mateo Loans Payable 3,089,707 100% $ 3,089,707 City of San Mateo Lease Liability 11,067,585 100% $ 11,067,585 City of San Mateo Subscriptions Liability 2,715,563 100% $ 2,715,563 San Mateo County Mosquito and Vector Control District General Fund Obligations 3,185,295 11.73% $ 373,667 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 624,671,793 $ 142,411,704 $ Less: Highlands Recreation District supported obligations 189 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 142,411,515 $ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 31,190,000 $ 100.00% 31,190,000 $ TOTAL DIRECT DEBT 91,129,227
TOTAL GROSS OVERLAPPING DEBT 827,173,477
TOTAL NET OVERLAPPING DEBT 827,173,288
GROSS COMBINED TOTAL DEBT 918,302,704 (3)
NET COMBINED TOTAL DEBT $ 918,302,515
Ratios to 2024-25 Assessed Valuation:

Direct Debt ($12,168,641) 0.03%
Total Direct and Overlapping Tax and Assessment Debt 1.95% Total Direct Debt ($91,129,227) 0.24%
Gross Combined Total Debt 2.40%
Net Combined Total Debt 2.40%
Ratios to Redevelopment Successor Agency Incremental Valuation ($3,301,305,109):

Total Overlapping Tax Increment Debt 0.94%
Notes:

Source: Neumo / MuniServices, LLC and California Municipal Statistics, Inc. (3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue.

City of San Mateo
Direct and Overlapping Governmental Activities Debt
As of June 30, 2025
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city, divided by the district's total taxable assessed value. (2) Includes unamortized premiums
213
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2016 2017 2018 2019 2020
Debt Limit $ 3,204,902 $ 3,483,855 $ 3,769,199 $ 4,091,591 $ 4,402,378 Total net debt applicable to limit 26,268 24,920 23,528 22,086 20,584 Legal debt margin $ 3,458,935 3,178,634 $ 3,745,671 $ 4,069,505 $ 4,381,794 $ Total net debt applicable to the limit as a
percentage of debt limit 0.82% 0.72% 0.62% 0.54% 0.47%
Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

Source: County of San Mateo

FISCAL YEAR
City of San Mateo
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
214
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2021 2022 2023 2024 2025
Debt Limit $ 4,731,707 $ 4,894,892 $ 5,290,997 $ 5,579,292 $ 5,840,346 Total net debt applicable to limit 19,032 17,410 15,733 13,986 12,168 Legal debt margin $ 4,877,482 4,712,675 $ 5,275,264 $ 5,565,306 $ 5,828,178 $ Total net debt applicable to the limit as a
percentage of debt limit 0.40% 0.36% 0.30% 0.25% 0.21%
Legal Debt Margin Calculation for Fiscal Year 2024
2025
Assessed value $ 38,091,510
Add back: exempt real property 844,130
$ 38,935,640
Debt limit (15% of assessed value) 5,840,346 $
Debt Application to limit:

General obligation bonds 12,168
Total net debt applicable to limit 12,168
Legal debt margin $ 5,828,178
Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

Source: County of San Mateo
City of San Mateo
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands)

FISCAL YEAR
215
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Sewer Less Net
Fiscal Charges Operating Available
Year and Other (1) Expenses (2) Revenue Principal Interest Coverage 2016 $ 31,874 $ 23,218 $ 8,656 $ 1,460 $ 2,560 2.15
2017 31,932 21,419 10,513 1,515 2,516 2.61
2018 41,927 21,870 20,057 1,565 2,462 4.98
2019 53,362 23,347 30,015 1,585 3,220 6.25
2020 64,587 22,828 41,759 1,650 9,536 3.73
2021 69,020 24,262 44,758 1,730 13,195 3.00
2022 71,061 24,409 46,652 (3) 20,413 20,820 (3) 2.17
2023 85,586 24,508 61,078 1,740 12,694 4.23
2024 85,128 30,124 55,004 (4) 12,018 273,430 (4) 3.96
2025 99,202 29,934 69,268 1,960 12,517 4.78
Notes:
(1) Sewer charges and other include investment earnings. (2) Operating expenses do not include interest or depreciation. (3) Increase due to the refunding of the 2011A Sewer Revenue bonds totaling $19.7 million, which is excluded from the coverage calculation. (4) Increase due to the refunding of the 2021B Wastewater Revenue Notes totaling $271.5 million, which is excluded from the coverage calculation.

Source: City of San Mateo Annual Comprehensive Financial Reports Pledged-Revenue Coverage
City of San Mateo
Debt Service
(amounts expressed in thousands)
Last Ten Fiscal Years
Sewer Revenue Bonds
216
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Fiscal
Year
Population
(1) Personal Income (2)
Per Capita
Personal
Income (2)
Median
Age
*Public School
Enrollment
County
Unemployment
Rate (%) (3)
City
Unemployment
Rate(%) (3)
County
Population (1)
City
Population
(% of County)
(1)
2016 102,659 $ 5,156,150,934 $ 50,226$ 39.1 20,603 3.40% 3.30% 766,041 13.40% 2017 103,426 5,444,686,980 52,643 39.1 21,074 3.00% 2.90% 770,203 13.43% 2018 104,490 5,850,629,158 55,992 38.9 21,321 2.20% 2.00% 774,155 13.50% 2019 104,570 6,175,904,200 59,060 39.6 21,299 1.70% 1.60% 774,485 13.50% 2020 103,087 6,332,177,735 61,426 39.2 21,461 11.10% 9.70% 773,244 13.33% 2021 103,045 6,832,166,874 66,303 38.2 20,729 6.84% 6.20% 765,245 13.47% 2022 103,779 7,903,471,358 76,157 37.8 20,012 1.70% 1.50% 744,662 13.94% 2023 103,318 9,177,651,153 88,829 38.0 19,554 2.70% 2.80% 737,644 14.01% 2024 103,352 10,259,142,230 99,264 39.4 19,323 2.90% 2.90% 741,565 13.94% 2025 104,315 11,164,331,652 107,025 40.0 19,268 3.40% 3.30% 748,337 13.94% Notes:
(1) Population Projections are provided by the California Department of Finance Projections. (2) Income Data is provided by U.S. Census Bureau.
(3) Unemployment Data is provided by the Employment Development Department's Bureau of Labor Statistics Department.

Source: Neumo / MuniServices, LLC
City of San Mateo
Demographic and Economic Statistics
Last Ten Fiscal Years
*Student Enrollment reflects the total number of students enrolled in the San Mateo Union High School District and San Mateo-Foster City Unified School District.

Any other school districts within the City are not accounted for in this statistic. 217
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Business Name
Number of
Employees
Percent of
Total
Employment
(%)
Number of
Employees
Percent of Total
Employment (%)
County of San Mateo Medical Center 1,372 2.27% 1,140 1.82% San Mateo Foster City School District* 1,245 2.06% 1,208 1.93% Sony Interactive Entertainment America, Playstation America 1,175 1.95% 1,300 2.08% San Mateo Union High School District 1,043 1.73% 1,000 1.60% San Mateo College (San Mateo County CCD) 726 1.20% 1,110 1.77% San Mateo County Behavioral Health 535 0.89% 560 0.89%
City of San Mateo 501 0.83% 991 1.58%
Mills Health Center - Sutter Health 412 0.68% 0.00%
Franklin Templeton Investor 381 0.63% 983 1.57%
Rakuten 291 0.48%
Net Suite Inc 600 0.96%
Marketo Inc 474 0.76%
Total Top 10 Employers 7,681 12.72% 9,366 14.96%
Total Labor Force (1) 60,400 62,600
Notes:
(1) Total City Labor Force provided by EDD Labor Force Data.

Results based on direct correspondence with city’s local businesses. *Includes Capuchino and Burlingame HS which are outside the city limits of San Mateo.

Source: Neumo / MuniServices, LLC
Principal Employers for City of San Mateo
City of San Mateo
Current Year and Nine Years Ago
2025 2016
218
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Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government 66.41 65.58 66.09 62.65 62.65 61.95 59.95 58.92 64.39 68.07 Community development 47.35 48.94 48.94 49.72 51.72 51.40 51.40 53.18 56.18 57.92 Public safety 256.53 268.11 265.85 177.14 171.51 170.50 167.50 169.40 170.40 175.75 (1) Public works
(excluding Sewer) 45.99 57.96 57.11 63.51 61.56 63.71 64.08 67.69 73.28 75.34 Parks and recreation
(excluding Golf) 101.54 102.07 103.21 107.73 107.73 106.40 107.68 100.47 107.08 109.17 Library 49.35 50.59 52.48 53.36 53.36 53.34 52.34 52.32 54.32 53.66 Sewer 77.99 80.49 80.49 84.58 86.53 86.20 84.83 86.52 85.41 90.70 Golf 11.14 11.77 11.77 12.55 12.55 12.75 12.75 12.75 7.50 7.50 Total: 656.30 685.51 685.94 611.24 607.61 606.25 600.53 601.25 618.56 638.11 Notes:

Source: Adopted City Budgets
(1) Public safety number starting fiscal year 2019 only included Police Department's employees. Fire Operations were transferred to San Mateo Consolidated Fire Department effective 1/13/2019.

City of San Mateo
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
Full-Time Equivalent Employees as of June 30
219
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Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Building:

Building permits issued 4,359 4,169 4,385 3,678 3,345 3,937 4,061 4,115 3,856 3,960 Inspections 16,984 19,061 20,252 18,828 15,890 19,138 16,160 18,881 18,129 15,485 Finance:

Business licenses issued 9,474 8,796 8,656 8,200 8,072 7,300 7,300 8,350 7,900 8,293 Fire:

Number of calls 9,780 9,282 9,822 5,365 (2)
Inspections 7,504 7,681 4,513 1,284 (2)
Golf course:

Golf rounds played 62,441 59,348 62,923 61,805 60,820 80,050 83,964 75,130 80,636 82,345 (3) Library:

Annual circulation 981,512 988,301 946,259 1,129,127 921,979 657,064 983,423 980,442 1,022,395 (3) 1,111,696 Library visits 603,760 610,834 555,008 764,469 422,226 25,168 255,644 336,040 379,404 331,363 (3) Parks and recreation:

Course registration 24,843 23,123 23,734 22,521 23,412 5,837 14,537 19,488 19,603 18,816 Facility rentals 1,368 1,346 1,369 1,329 827 - 191 473 397 311 Picnic rentals 1,086 1,274 1,340 1,423 1,165 361 1,650 1,608 1,676 2,897 Police:

Arrests 3,311 2,947 2,670 2,496 2,112 2,242 2,231 2,106 2,255 2,104 Traffic violations 6,548 4,470 13,364 11,058 5,999 9,400 7,636 7,853 7,487 8,163 (1) Parking violations 30,699 31,950 27,103 27,410 23,300 36,558 32,276 65,102 60,279 54,735 Public works:

Street resurfacing (lane miles) 14 4 6 22 7 18 9 42.3 6.8 2.8 Potholes repaired 198 315 150 297 209 331 744 774 557 408 Sewer:

Number of customers 27,816 27,965 27,961 28,237 28,366 28,359 28,359 28,359 28,494 28,502 Average daily sewage
treatment (mgd) 10.0 12.2 10.4 11.5 9.9 9.7 10.6 13.0 13.0 11.3 Notes:

Source: Various City Departments
City of San Mateo
Operating Indicators by Function
Last Ten Fiscal Years

FISCAL YEAR
(1) Number of traffic violations starting fiscal year 2018 included number of photo enforcement violations. Such information was not available for prior (2) Number of fire calls for fiscal year 2019 included calls for period from 7/1/18 to 1/12/19. Fire operation was transferred to San Mateo Consolidated Fire Department (SMC Fire) effective 1/13/2019. Please refer to SMC Fire annual financial report for Fire Department operating indicators starting from January (3) Due to shelter-in-place orders, all three San Mateo Public Library facilities were closed to the public from 3/16/20 through 6/30/20, and the golf course was completely closed from 3/16/20 through 5/5/20.
220
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Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Fire:

Fire stations 6 6 6 6 6 6 6 6 6 6
Golf course:

Municipal golf courses 1 1 1 1 1 1 1 1 1 1
Library:

Main Library 1 1 1 1 1 1 1 1 1 1
Branch Library 2 2 2 2 2 2 2 2 2 2
Parks and recreation:

Parks acreage 320 320 320 320 320 320 320 320 320 320
Parks 35 35 35 35 35 35 35 35 35 35
Swimming pools 2 2 2 2 2 2 2 2 2 2
Tennis courts 16 16 16 16 16 16 16 16 16 16
Community centers 6 6 6 6 6 6 6 6 6 6
Police:

Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 36 37 37 37 40 40 40 40 40 40
Public works:

Street (miles) 204 204 204 204 204 204 204 204 204 204
Street lights 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Traffic signals 84 86 87 87 87 90 90 90 90 90
Sewer:

Wastewater treatment plant 1 1 1 1 1 1 1 1 1 1
Sanitary sewers (miles) 236 260 260 260 260 260 260 260 260 260 Storm drains (miles) 140 148 148 148 148 148 148 148 148 148 Number of pump stations 35 37 37 37 37 37 37 37 37 37
Maximum daily treatment
capacity (mgd) 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 Source: Various City Departments
City of San Mateo
Capital Asset Statistics by Function
Last Ten Fiscal Years

FISCAL YEAR
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CITY OF SAN MATEO
Out CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 16 Section Name: OLD BUSINESS Account Number: 25-3112 File ID: 25-10745 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: January 26, 2026
SUBJECT:

Historic Policy Effort – Update on Draft Historic Policies and Council Direction RECOMMENDATION:

Receive a presentation on the Draft Citywide Historic Context Statement and Draft Historic Preservation Ordinance Update, receive public comments, and provide staff with direction on how to proceed with updating the draft policy documents and the timeline for scheduling public hearings.

BACKGROUND:

San Mateo's General Plan 2040 sets the policy framework for how issues such as historic resources and preservation should be addressed. The Community Design and Historic Resources Element addresses the topic of historic and cultural resources, and includes goals, policies, and actions that outline the framework for how the City should approach historic resources and preservation. Specifically, Goal CD-5 addresses preserving historic and culturally important resources to maintain San Mateo's special identity and continuity with the past and includes seven policies and six actions to support achievement of this goal.

On June 17, 2024, the City Council held a study session to consider options for how to proceed with updating the City's local historic policies and codes pursuant to the actions in the General Plan. The study session resulted in the Council directing staff to prioritize updating the City's Historic Preservation Ordinance and preparing a Citywide Historic Context Statement. The work would include creation of a framework for the designation of historic resources and districts, establishment of review and permitting procedures for historic alterations and demolitions, consistency with Federal and State standards and guidelines, and alignment with the other goals and policies outlined in the General Plan.

In the summer and fall of 2024, staff issued a Request for Proposals (RFP) for a qualified historic consultant to support the historic policy update work directed by Council. Based on overall professional experience, quality of proposal, responses to interview questions and composition of the consultant team, staff identified Rincon Consultants, Inc. as being the best qualified to support the City's historic policy update effort. On January 21, 2025, the City Council voted to appropriate funding to complete the historic policy update effort and to approve a professional services agreement with Rincon Consultants to support this historic policy work.

On June 2, 2025, the City Council held a study session to receive an update on the policy effort and provide staff with direction ahead of community outreach and engagement. Following receipt of a presentation that outlined the background of San Mateo’s Historic Preservation Ordinance, key issues and opportunities for improving the Historic Preservation Ordinance, the outreach and engagement strategy, and a review of different approaches to key elements of an effective historic preservation ordinance, including owner consent, the Council provided direction to shape the Historic Preservation Ordinance update. Direction from Council included that the Historic Preservation Ordinance update should include a concise set of definitions; update existing ordinance language that is too rigid, inconsistent, and/or detailed; and 375 of 1110

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establish a reviewing body. The Council also directed staff to assess if the Community Relation’s Commission (CRC) instead of the Planning Commission was the most appropriate reviewing body to support administration of the Historic Preservation Ordinance. The Council agreed that the local historic designation criteria should generally align with the California Register of Historical Resources criteria, but advised that the criteria could potentially include additional criteria to acknowledge the city’s unique history and be informed by the results of community engagement efforts. Council also confirmed that the Historic Preservation Ordinance should include a mechanism to designate local historic districts, and such designations should require owner consent but did not set the level of consent that should be required for a district application to move forward. Finally, Council provided direction that the Historic Preservation Ordinance update should include owner consent for local listing in the form of affirmative consent, i.e. the affected property owner‘s clear agreement, for all local listings.

Since the June City Council study session, the project team has held a number of public outreach and engagement activities to introduce the project to the community and gather their feedback to be incorporated into the Historic Context Statement and updated Historic Preservation Ordinance, as outlined in the Outreach and Engagement Plan published in May 20251. To date, outreach activities have included three focus group meetings, two virtual workshops, and three popup events and have reached over 200 community members. Key takeaways have included a general recognition of the value of San Mateo’s cultural heritage and a desire for a clear, consistent process for identifying and regulating the City’s historic resources.

DISCUSSION:

Below is a summary of the work and activities that have happened over the past six months since the June City Council study session and an overview of some key policy questions that staff is seeking direction on before final drafts of the Historic Preservation Ordinance and Citywide Historic Context Statement are published and public hearings are scheduled.

Draft Historic Context Statement
The Draft Citywide Historic Context Statement (Attachment 1) was developed based on research into San Mateo’s history, feedback from community members and guidance from the National Park Service and California Office of Historic Preservation. The Historic Context Statement highlights trends and patterns of development, as well as their relationship to significant eras, moments, communities and people in San Mateo’s history. It is also a policy document that provides a valuable framework to guide consistent evaluation of the historic significance of properties and their potential eligibility for local listing.

The Historic Context Statement does not include property evaluations or any in-depth surveys. The Historic Context Statement follows industry best practices, and is organized by significant periods, themes, and property types and presented chronologically. Information gathered from community outreach events where we asked people what places in San Mateo are meaningful to them are reflected in the property types that were identified as well as in the buildings, places, and development trends that were included in the narrative. The draft is still being updated with information on notable architects, builders, and designers and guidance for assessing significance. The draft was made available to the public for review the week of November 24, 2025 and was a key focus of the January 21, 2026 community workshop. All community input received since the first draft was published will be considered and, as applicable, incorporated into the final draft that is published later this winter.

Council Direction
Based on the draft that was published, and the subsequent public comments received, does the City Council have any comments or direction related to the draft Context Statement? Community Outreach and Engagement
The Outreach and Engagement Strategy to support the Historic Policy Update Effort focused on multiple entry points for community participation. The strategy was designed to offer a range of opportunities for residents, organizations, and interested parties to share input and perspectives to inform the update process. Project outreach began in February 2025 1 Outreach and Engagement Strategy link
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and will extend though the adoption hearings in Spring 2026. To date, the project team has conducted two City Council Study Sessions, three focus groups, two community workshops, online outreach and an engagement tool (digital time capsule), and three mobile workshops designed to reach a broad range of community members. The key takeaways, thus far, have been that the community generally recognizes that San Mateo has cultural and architectural diversity that should be preserved, but desires improved clarity and transparency in the process of identifying and managing resources.

Participants in public outreach activities were generally interested in a balanced approach to policies that protect San Mateo’s heritage while allowing for reasonable flexibility for property owners. Additional information about the outreach activities, community input and key take-aways can be found in the Outreach and Engagement Summary Report (Attachment 2). All written public comments that have been submitted through January 16, 2026 are included as an appendix to the Report. Additional public comments received after this date are included as Attachment 4.

Most recently, a virtual community workshop was held on the evening of January 21, 2026. The event included 55 attendees and provided an overview of the draft context statement and draft ordinance, examples of how the updated ordinance would be applied, multiple polling questions, and multiple comment periods to receive input and answer questions. One of the polling questions sought input on the consent threshold that should go into the updated ordinance, and 60% of the respondents (45) expressed support for requiring a super majority (66% or 75%) of the properties within a proposed district to affirmatively consent. Some of the reoccurring questions/comments included support for Glazenwood as a historic district and clarification on its current status (an eligible historic district), what properties will be subject to the updated ordinance (locally listed resources only), will contributors in historic districts and individually listed properties require Certificates of Appropriateness for exterior alterations (yes, but non-contributors will not be subject to any additional review), clarification that state/federal listings will require a local listing action to be added to the City’s Historic Resources Inventory, and clarification about when CEQA review is required per State law. Additional details from this community workshop will be provided as part of the staff presentation at the meeting.

Additional planned outreach and engagement activities include two more focus groups – one focused on youth and one focused on underserved communities – and one additional community workshop. The purpose of the remaining focus groups is to provide a checkpoint with underrepresented communities to support broader dialogue on the components of historic preservation and add additional feedback to support the representation of San Mateo’s diverse communities within the historic policy effort. The last community workshop, which is currently scheduled to happen post adoption, is intended to provide technical guidance on how to use the Historic Context Statement and Historic Preservation Ordinance and their associated tools and guidance documents. Resources to support community understanding will include screening criteria to assess properties for potential historic eligibility ahead of a historic resource evaluation being required, detailed overviews, submittal requirements for local listing and proposed projects on locally listed historic resources and updated FAQs.

Council Direction
Staff is looking for Council input and direction on the remaining community outreach and engagement activities that are planned. Has there been sufficient outreach and engagement for this policy update effort to move forward with public hearings before the Planning Commission and City Council, or are there specific additional activities that should be completed before public hearings are scheduled? If additional outreach and engagement are directed, the timeline for project completion may be extended and/or additional money from the project’s contingency fund may be necessary to complete the work.

Draft Historic Preservation Ordinance
The Historic Preservation Ordinance update has been drafted in response to City Council direction and community input, and to meet current best practices and include all essential elements for an effective historic preservation ordinance. The draft Historic Preservation Ordinance update includes the following features, which are missing from City’s existing Historic Preservation Ordinance:
• Establishment of a reviewing authority;
• Procedures and criteria for designating local historic resources; • Consideration of the economic effects of designation; • Establishment of appeals processes;
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• Provisions for enforcement; and
• Clear and concise definitions.

In addition to formerly missing elements, the Historic Preservation Ordinance update includes improved and clarified procedures for actions subject to review, and provides a clarified process for the types of actions that would be required to go to the reviewing authority versus decisions that can be made at the staff level. A sentiment repeated through ongoing community outreach and engagement was the desire for a transparent, consistent, and clear process in the nomination and project review process for historic resources. The additions and improvements included in the Historic Preservation Ordinance update are aimed at providing that desired clarity. It should also be noted that, as currently drafted per earlier Council direction, the ordinance is only applicable to locally designated historic resources. Resources designated at the State or Federal level would not be added to the City’s Historic Resources Inventory or subject to the updated Ordinance unless a subsequent local designation occurs.

Of particular interest to San Mateo residents, as heard through community input efforts, was the identification and treatment of local historic districts. In response to community feedback and Council direction, the process proposed for nominating a local historic district includes a robust notification requirement with a community meeting obligation and a strong element of affirmative owner consent that requires both an owner-led application process as well as a petition of the effected property owners, confirming that a specified percentage of affected property owners support the application.

That percentage is currently undetermined in the draft ordinance as staff is seeking Council direction on that topic. The Historic Preservation Ordinance update was made available for public review the week of December 15, 2025 and was a key focus of the January 21, 2026 community workshop.

Council Direction
Staff are looking for Council direction on the following items related to the Historic Preservation Ordinance update:
• Thresholds for Owner Consent in Historic Districts:
o City Council previously provided that eligibility requirements for listing local historic districts should include a majority threshold for owner consent but held off on setting a specific percentage. Thresholds may be a simple majority (50% + 1) or a supermajority (2/3 or 3/4).
o What percentage of property owners within a proposed historic district should be required to support a historic district nomination for it to proceed to City Council for designation? • Eligibility Criteria:
o To date, the public outreach and engagement process has not resulted in the identification of local criteria for designation in addition to the CRHR criteria, which are as follows:
▪ Association with events that have made a significant contribution to the broad patterns of San Mateo’s or California’s history and cultural heritage;
▪ Association with the lives of persons or communities important to San Mateo’s or California’s past; ▪ Embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of an important creative individual, or possesses high artistic values; or ▪ Has yielded, or may be likely to yield, information important to prehistory or history. o Are there any additional criteria that should be included in the local designation criteria? • Naming Conventions:
o The local inventory is drafted to be called the “San Mateo Historic Resources Inventory,” which would be comprised of individual locally designated properties called “Listed Resources” and locally designated historic neighborhoods called “Historic Districts.”
o Other options for naming conventions include: Landmarks, Historic Resources Inventory Property, Protected Resource, Designated Resource, etc.
o Does the Council have any opinion on the drafted naming conventions? Historic Review Body
As currently proposed in draft Historic Preservation Ordinance, the reviewing body will be responsible for tasks such as making recommendations on applications to add and/or remove properties to the San Mateo Historic Resources Inventory, reviewing applications for Certificates of Appropriateness (alterations to a Listed Resource or Contributor within 378 of 1110

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a Historic District), including evaluating proposed projects against applicable design guidelines and the Secretary of the Interior’s Standards for the Treatment of Historic Properties, and making recommendations on applications for historic preservation (Mills Act) contracts. Council previously directed staff to evaluate if the Community Relations Commission (CRC) would be the appropriate reviewing body to administer the Historic Preservation Ordinance as outlined above.

The CRC’s current powers and duties, as outlined in San Mateo Municipal Code (SMMC) Chapter 2.21, include hearing administration of federal grants (CDBG), advancing the City's equity and inclusion objectives, working and coordinating with the County’s Human Relations Commission, supporting Housing Element implementation of policies and programs related to tenant protections and Affirmatively Furthering Fair Housing (AFFH). Further, the CRC is currently supported by Housing Division staff and is generally composed of residents who have backgrounds and experience that do not significantly overlap with the skills and experience to support administration of historic policies and review of historic projects. Backgrounds that would typically have knowledge in this area include architects, city planners, design professionals, architectural historians and/or individuals with demonstrated local historical knowledge. So, in order to ensure that the CRC has the knowledge and expertise to review historic projects and make recommendations to the City Council, significant additional training would be necessary, additional Planning staff and potentially a City historical consultant would need to support the CRC when reviewing historic items, and the desired background experience for future commissioner appointments would need to be revised.

As an alternative, the Planning Commission is an existing City commission that includes powers and duties and commissioner experience that more closely aligns with the experience necessary to be an effective reviewing body for the Historic Preservation Ordinance. The Planning Commission’s duties and responsibilities include administration of the City’s General Plan, Zoning Code and associated policy documents, and making recommendations to the City Council on policies and codes related to land use, development and urban design policy. Desired background experience for commissioners includes experience in architecture, construction, law, and local history. While additional training would be necessary to ensure that the Planning Commission has the knowledge and expertise to review historic projects and make recommendations to the City Council, the current work and background experience appears to be a better fit for Historic Preservation Ordinance administration.

Council Direction
Which City commission should be the reviewing body for the Historic Preservation Ordinance? CITY COUNCIL DIRECTION:

Based on the information shared in this agenda report, staff is seeking direction from Council on the following questions:

1. Historic Context Statement – Are there any updates or revisions to this draft document?

2. Outreach and Engagement – Are there additional activities that should be completed before public hearings are scheduled?

3. Historic Preservation Ordinance
a. What percentage of property owners within a proposed historic district should be required to support a historic district nomination for it to proceed to City Council for designation? b. Are there any additional criteria that should be included in the local designation criteria? c. Does the Council have any opinion on the drafted naming conventions? d. Any other direction on updates or revisions to the draft ordinance?

4. Historic Review Body – Which City commission should be the reviewing body for the Historic Preservation Ordinance?
NEXT STEPS:

Following this study session, staff will continue to work to refine and finalize the Historic Context Statement and the updated Historic Preservation Ordinance. Work will include integrating additional feedback we receive from City Council and the community through our ongoing outreach and engagement activities. Upcoming outreach activities include two additional focus groups, which are anticipated to be scheduled in February 2026, and one additional workshop to serve as a primer for the public to understand how to use the Historic Context Statement and Historic Preservation Ordinance and their associated tools. The outstanding workshop will be executed in late Spring 2026, depending on City Council direction. 379 of 1110

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Updated drafts of documents will be circulated when available and are expected in late February or March, depending on City Council direction. Based on the current timeline, it is anticipated that a Planning Commission public hearing will happen in March 2026, and a City Council public hearing for approval will happen in April 2026.

BUDGET IMPACT:

This work is being completed as part of the professional services agreement with Rincon Consultants that was approved by City Council on January 21, 2025. The work is funded by the Advance Planning Fund (Fund 225) and does not have an impact on the City's General Fund.

ENVIRONMENTAL DETERMINATION:

This Study Session 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. In addition, meeting notifications were sent out to the interested parties list, included in the City’s weekly eNews and pushed out through the City’s social media channels.

ATTACHMENTS
Att 1 – Draft Citywide Historic Context Statement
Att 2 – Outreach and Engagement Summary Report
Att 3 – Draft Updated Historic Preservation Ordinance
Att 4 – Additional Public Comments

STAFF CONTACT
City of San Mateo Rincon Consultants
Zachary Dahl JulieAnn Murphy Margo Nayyar
Director Community Development Senior Architectural Historian Cultural Resources Principal [email protected]
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DRAFT Historic Context Statement
prepared for
City of San Mateo
Planning Division
330 West 20th Avenue
San Mateo, California 94403
Contact: Zachary Dahl
prepared by
Rincon Consultants, Inc.
66 Franklin Street, Suite 300
Oakland, California 94607
DRAFT November 2025
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Table of Contents
Historic Context Statement i
Table of Contents
1 Introduction....................................................................................................................................7

1.1 Project Description..............................................................................................................7

1.2 Project Team.......................................................................................................................7 2 Methodology ..................................................................................................................................9

2.1 Study Area...........................................................................................................................9

2.2 Research Methodology .......................................................................................................9

2.3 Public Outreach and Engagement.......................................................................................9

2.4 Historic Context Statement...............................................................................................10

2.5 How to Use this Document...............................................................................................11 3 Previous Surveys and Studies.......................................................................................................14

3.1 Previous Surveys...............................................................................................................14

3.1.1 1989 Survey and Historic Building Survey Final Report....................................14

3.1.2 City of San Mateo Historic Preservation Ordinance .........................................14

3.1.3 City of San Mateo General Plan........................................................................14

3.1.4 NRHP- and CRHR-Listed Resources...................................................................15

3.2 California Historical Resources Information Center Search..............................................15 4 Significant Periods, Themes, and Property Types ........................................................................16

4.1 Chronological Periods.......................................................................................................16

4.2 Significant Themes............................................................................................................16

4.2.1 Residential Development .................................................................................17

4.2.2 Commercial Development................................................................................17

4.2.3 Civic and Institutional Development ................................................................17

4.2.4 Transportation Infrastructure...........................................................................17

4.2.5 Industrial Development....................................................................................17

4.2.6 Cultural and Ethnic Groups...............................................................................17

4.3 Associated Property Types................................................................................................17

4.3.1 Residential Properties.......................................................................................18

4.3.2 Commercial Properties.....................................................................................18

4.3.3 Civic and Institutional Properties......................................................................18

4.3.4 Transportation Infrastructure...........................................................................18

4.3.5 Industrial Properties.........................................................................................18

4.3.6 Cultural and Ethnic Group Properties...............................................................18 5 Precontact History of San Mateo..................................................................................................20

5.1 Precontact History ............................................................................................................20

5.2 Ethnohistoric Context .......................................................................................................21 6 Spanish and Mexican Period.........................................................................................................24

6.1 Spanish Period (1769–1822).............................................................................................24

6.2 Mexican Period (1822–1848)............................................................................................27 7 Early Settlement (1849–1893)......................................................................................................30

7.1 Residential Development..................................................................................................30

7.2 Commercial Development ................................................................................................35 383 of 1110
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7.3 Civic and Institutional Development.................................................................................38

7.4 Transportation Infrastructure...........................................................................................47

7.5 Industrial Development ....................................................................................................49

7.6 Cultural and Ethnic Groups...............................................................................................49 8 Incorporation and Suburban Growth (1894–1940)......................................................................52

8.1 Residential Development..................................................................................................52

8.2 Commercial Development ................................................................................................66

8.3 Civic and Institutional Development.................................................................................71

8.4 Transportation Infrastructure...........................................................................................75

8.5 Industrial Development ....................................................................................................77

8.6 Cultural and Ethnic Groups...............................................................................................78 9 World War II and Post-War Development (1941–1979) ..............................................................88

9.1 Residential Development..................................................................................................89

9.2 Commercial Development ................................................................................................92

9.3 Civic and Institutional Development...............................................................................104

9.4 Transportation Infrastructure.........................................................................................110

9.5 Industrial Development ..................................................................................................113

9.6 Cultural and Ethnic Groups.............................................................................................114 10 Modern San Mateo (1980–2025) ...............................................................................................123

10.1 Residential Development................................................................................................123

10.2 Commercial Development ..............................................................................................124

10.3 Civic and Institutional Development...............................................................................125

10.4 Cultural and Ethnic Groups.............................................................................................126

10.5 Transportation Infrastructure.........................................................................................127

10.6 Industrial Development ..................................................................................................127 11 Architectural Styles.....................................................................................................................129

11.1 Gothic Revival (Carpenter’s Gothic)................................................................................129

11.2 Folk National ...................................................................................................................131

11.3 Folk Victorian ..................................................................................................................132

11.4 Italianate Style ................................................................................................................133

11.5 Queen Anne ....................................................................................................................134

11.6 American Colonial Revival...............................................................................................136

11.7 Classical Revival...............................................................................................................138

11.8 Renaissance Revival ........................................................................................................139

11.9 Mission Revival................................................................................................................140

11.10 Craftsman........................................................................................................................142

11.11 Spanish Colonial Revival..................................................................................................144

11.12 Tudor Revival ..................................................................................................................146

11.13 French Eclectic ................................................................................................................147

11.14 Art Deco 148

11.15 Streamline Moderne.......................................................................................................149

11.16 Minimal Traditional.........................................................................................................151

11.17 Ranch Style......................................................................................................................152

11.18 Mid-Century Modern......................................................................................................154

11.19 New Formalism ...............................................................................................................156

11.20 Bay Tradition Regional Styles..........................................................................................157 384 of 1110
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12 Architects, Landscape Architects, Developers, and Builders......................................................159

12.1 Architects........................................................................................................................159

12.2 Landscape Architects......................................................................................................159

12.3 Developers......................................................................................................................159

12.4 Builders ...........................................................................................................................159 13 Guidance for Assessing Significance...........................................................................................161

13.1 Designation Criteria ........................................................................................................161

13.1.1 National Register of Historic Places................................................................161

13.1.2 California Register of Historical Resources.....................................................162

13.1.3 San Mateo Historic Preservation Ordinance ..................................................162

13.2 Property Types and Designation Criteria ........................................................................162 14 References..................................................................................................................................163 Tables
Table 1 San Mateo Properties Listed in the NRHP and CRHR........................................................15 Table 2 San Francisco Bay Archaeological Region Prehistory Chronology ....................................20 Figures
Figure 1 Map of Shellmounds in Vicinity of San Mateo Creek........................................................25 Figure 2 1850 Drawing of San Mateo Hospice................................................................................27 Figure 3 W.M.D. Howard’s Estate, El Cerrito..................................................................................31 Figure 4 1862 Map of San Mateo Prepared for Charles Pohlemus ................................................32 Figure 5 Parrott House, c. 1868 ......................................................................................................33 Figure 6 Example of Early Residences in San Mateo’s Central Neighborhood, 45 South Delaware (L) and 809 Lawrence Road (R).....................................................................................................34 Figure 7 1888 Parcel Map of San Mateo.........................................................................................35 Figure 8 1875 Image of San Mateo House.....................................................................................36 Figure 9 ca.1883 View of B Street...................................................................................................37 Figure 10 Wisnom Carpenter and Builder Shop, 1880s....................................................................38 Figure 11 Library Hall in 1906 after the Earthquake.........................................................................40 Figure 12 Stereograph of Laurel Hall School, c. 1880 .......................................................................41 Figure 13 1877 Advertisement for Laurel Hall School ......................................................................41 Figure 14 1888 Advertisement for Gamble’s Laurel Hall College .....................................................42 Figure 15 Undated Postcard of St. Matthews Hall............................................................................43 Figure 16 Undated Photo of San Mateo School................................................................................44 Figure 17 Undated Photo of Central School .....................................................................................44 Figure 18 Cornerstone Laying at St. Matthew’s Catholic Church in 1889 ........................................45 385 of 1110
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Figure 19 1891 Sanborn Depicting Catholic Church .........................................................................46 Figure 20 Image of St. Matthew’s Episcopal Church on Howard Estate...........................................46 Figure 21 Congregational Church of San Mateo, 1869.....................................................................47 Figure 22 Stagecoach at San Mateo Rail Station ..............................................................................49 Figure 23 1891 Map of San Mateo Showing Cluster of Chinese Businesses....................................51 Figure 24 2 South Delaware Street, Current View............................................................................53 Figure 25 37 East Santa Inez Avenue, Current View.........................................................................53 Figure 26 Advertisement for San Mateo Heights .............................................................................54 Figure 27 Bromfield Family at San Mateo Park House on Occidental Avenue, 1914; Davenport Bromfield, far right. ......................................................................................................................55 Figure 28 1924 Advertisement for House in San Mateo Park ..........................................................56 Figure 29 1934 Advertisement for House in San Mateo Park ..........................................................56 Figure 30 1907 Advertisement for Hayward Park Subdivision .........................................................57 Figure 31 1912 Map of San Mateo’s Subdivisions............................................................................58 Figure 32 1929 Aerial of Hayward Park ............................................................................................58 Figure 33 1920 Sanborn (left) and 1929 aerial (right) of San Mateo City Homestead Development ................................................................................................................................60 Figure 34 1929 Advertisement for Baywood Neighborhood............................................................61 Figure 35 1931 View of Third Avenue and El Camino Real...............................................................62 Figure 36 1939 View of Beresford Area, Facing East toward Bay Meadows....................................63 Figure 37 1937 Image of Aragon Tract House ..................................................................................64 Figure 38 Sketch of Sunnybrae House ..............................................................................................65 Figure 39 Damage to San Mateo Stable Building at 1st Avenue and B Street, 1906........................66 Figure 40 Levy Bros Store at Wisnom Block c. 1905.........................................................................68 Figure 41 Levy Bros Third Avenue Building under Construction, 1931 ............................................68 Figure 42 c. 1910 Image of Wisnom-Bonner Hardware at 2nd and Ellsworth with Dodge Dealership Sign .............................................................................................................................69 Figure 43 San Mateo Theater, 1925 .................................................................................................70 Figure 44 San Mateo Police Headquarters 1939 ..............................................................................72 Figure 45 College of San Mateo Students at Kohl Mansion Location, c. 1925 .................................73 Figure 46 The First Methodist Church, c. 1905.................................................................................75 Figure 47 Bayshore Highway to Coyote Point, 1928.........................................................................76 Figure 48 San Mateo-Hayward Bridge, 1929 ....................................................................................77 Figure 49 1920 Map Showing San Mateo’s Chinese and Japanese Businesses................................79 386 of 1110
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Figure 50 National Association for the Advancement of Colored People Dinner at Noah’s Ark, c. 1925 81
Figure 51 Nagaya at 112 North F Street (now Fremont Street) on 1920 Sanborn Map ..................83 Figure 52 Takahashi Market 221 South Claremont ..........................................................................84 Figure 53 Pace Setter House #3, 1950 ..............................................................................................90 Figure 54 1967 View of Woodlake Apartments................................................................................92 Figure 55 View of San Mateo’s Downtown Commercial District, 1952............................................92 Figure 56 Hillsdale Shopping Center c. 1950s...................................................................................93 Figure 57 Shopping District along West 25th Avenue with a mix of pre- and post-World War II Commercial Architecture..............................................................................................................94 Figure 58 Shopping Center at 42nd and Olympic Avenues ..............................................................95 Figure 59 Commercial-Retail within the Villa Apartments at 4000 South El Camino Real...............95 Figure 60 Villa Hotel, 1957................................................................................................................96 Figure 61 Wells Fargo Bank (Originally American Trust Co.) at 100 East 4th Avenue, 1981 ............97 Figure 62 Bank of America’s A.P. Giannini Memorial Branch at 300 South El Camino Real.............98 Figure 63 Former Joseph I. Magnin Store at 88 East 4th Street.......................................................99 Figure 64 Borel Place ......................................................................................................................101 Figure 65 Commercial-Office Building at 2555 Flores Avenue .......................................................102 Figure 66 Former Crocker Bank Building, 1982 ..............................................................................103 Figure 67 Baywood Medical Building at 1 Baywood Avenue..........................................................105 Figure 68 101 North San Mateo Drive ............................................................................................106 Figure 69 Japanese Buddhist Temple at 2 South Claremont Street ...............................................108 Figure 70 Community Baptist Church (left) and Sturge Presbyterian Church (right) .....................109 Figure 71 Former First Presbyterian Church (Waypoint Church) ...................................................110 Figure 72 Hope Evangelical Lutheran Church .................................................................................110 Figure 73 Downtown San Mateo 1979 ...........................................................................................113 Figure 74 1950 Sanborn Map Depicting Area of Former Chinese and Japanese Stores ................116 Figure 75 1942 “San Mateo Land Occupied by Japanese” .............................................................118 Figure 76 Mrs. Saiki Yamaguchi and Susan Yamaguchi at the Tanaka House, 38 Eldorado, 1945 .119 387 of 1110
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1 Introduction

1.1 Project Description
The Historic Context Statement was undertaken by the City of San Mateo’s (City) Planning Division as part of a project to enhance and streamline the City’s historic preservation program and meet the goals of the Strive San Mateo General Plan 2040 and included an updated Historic Context Statement and development of this historic context statement. Historic context statements are written planning documents that help distill a community’s collective knowledge about its historic places into a concise and practical format by providing a narrative history of the development patterns, periods of development, typical architectural styles of a period and key features to illustrate the style. It also provides a framework that offers greater clarity and consistency, reduces the burden of original research for property owners and applicants, and will help to streamline future designation decisions, as appropriate.

This document presents the history of San Mateo’s built environment from prehistory to present, and identifies important themes, subthemes, events, and patterns of development. It also describes different property types, architectural styles, architects and builders associated with these important themes. This document also presents registration requirements for evaluating significance and integrity that is specific to the city of San Mateo.

1.2 Project Team
This report was written and researched by Rincon Architectural Historian Project Manager JulieAnn Murphy, MSHP. Rincon Architectural Historians Josh Bevan, AICP, MSHP, and Antonette Hrycyk, carried out additional research and project assistance. Cultural Resources Principal Margo Nayyar provided senior oversight and quality control. Each member of Rincon’s team meets the Secretary of the Interior’s Professional Qualifications Standards for history and architectural history (36 Code of Federal Regulations, Part 61).
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2 Methodology

2.1 Study Area
The study area for the Historic Context Statement includes the entire city of San Mateo (FIGURE).

San Mateo is located on the San Francisco Peninsula, approximately 20 miles south of San Francisco.

Located in San Mateo County, it is the county’s most populous city. It borders the city of Burlingame to the north, the town of Hillsborough to the west, and the city of Belmont to the south. The city’s eastern boundary is defined by the San Francisco Bay at the northeast corner, and the city of Foster City at the southeast corner.

2.2 Research Methodology
Rincon completed background and archival research in support of this study throughout January and September 2025. Primary and secondary source materials were consulted and included, but were not limited to, historical maps, aerial photographs, and written histories of the area. The following sources and repositories were used to develop an understanding of the city’s context:
▪ San Mateo County Assessor’s Office
▪ City of San Mateo Planning Division
▪ San Mateo Local History Collection, San Mateo Public Library ▪ California Collection, San Mateo Public Library
▪ San Mateo County Historical Association Archives
▪ Online Archive of California
▪ Calisphere
▪ Historical aerial photographs accessed via Nationwide Environmental Title Research, LLC Online ▪ Historical aerial photographs accessed via University of California, Santa Barbara Library FrameFinder
▪ Sanborn Fire Insurance Company Maps accessed through the San Francisco County Public Library
▪ Historical United States Geological Survey topographic maps ▪ Historical maps on file with the Library of Congress
▪ Historical maps on file with the David Rumsey Map Collection ▪ Historical newspaper clippings obtained from Newspapers.com and the California Digital Newspaper Collection
▪ Various historical records via Ancestry.com
▪ Various historical records and secondary sources via Internet Archive

2.3 Public Outreach and Engagement
The project scope, schedule, and budget were presented to City Council on January 21, 2025. Rincon developed a robust outreach and engagement strategy to elicit community participation and 391 of 1110
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10 feedback, which was finalized and published on a project-specific webpage on the City’s website in May 2025. The document was revised and re-uploaded in August 2025. Other information on the webpage included upcoming events and opportunities for participation, and access to an interactive digital time capsule for community members to share memories, photos, and stories of San Mateo.

Rincon targeted several focus groups with keen interest in the history of San Mateo, historic preservation, development, and economic health. Focus groups with residents interested in historic preservation occurred on July 9, 2025, and on July 16, 2025. Additional focus groups with community business leaders were held on XXX, with underrepresented communities on XXX, and with community youth on XXX. A virtual community workshop held on July 29, 2025, provided a high-level overview of historic preservation and its history, a review of common historic preservation regulations, and interactive activities to understand community attitudes and priorities for the City’s historic preservation efforts.

In an effort to reach people where they were to provide critical feedback on the purpose and goals of the project and publicize the ongoing public engagement, Rincon and City Staff held several popup events. They included September Nights on B Street on September 18, 2025, Chavez Supermarket on September 23, 2025, and the Hacienda Farmer’s Market on October 7, 2025. In addition to the pop-up events, City Staff was also present at the September 19, 2025, Movies in the Park event to hand out information on the project and provide contact information on how to learn more about upcoming and ongoing outreach events.

In addition to active engagement, the City also installed handouts and information boards in four static locations throughout the city, including City Hall, the Main Library, the Martin Luther King, Jr.

Community Center, and the Senior Center. Informational flyers and postcards were also distributed at the Central Recreation Center.

ADDITIONAL INFORMATION PENDING

2.4 Historic Context Statement
The Historic Context Statement is arranged in chronological chapters that relate to the city’s major development periods from prehistory to present. The content and format of this document follows guidance and industry best practices, as provided by the National Park Service and California Office of Historic Preservation (OHP). Guidance documents consulted included the following:
▪ National Register Bulletin 15: How to Apply the National Register Criteria for Evaluation1 ▪ National Register Bulletin 16A: How to Complete the National Register Registration Form2 ▪ National Register Bulletin 16B How to Complete the National Register Multiple Property Documentation Form3
▪ Instructions for Recording Historical Resources4
1 National Park Service, National Register Bulletin 15: How to Apply the National Register Criteria for Evaluation (U.S. Department of the Interior, 1997a): https://www.nps.gov/subjects/nationalregister/upload/NRB-15_web508.pdf. 2 National Park Service, National Register Bulletin 16A: How to Complete the National Register Registration Form (U.S. Department of the Interior, 1997b): https://www.nps.gov/subjects/nationalregister/upload/NRB16A-Complete.pdf. 3 National Park Service, National Register Bulletin 16B How to Complete the National Register Multiple Property Documentation Form (U.S.

Department of the Interior, 1999): https://www.nps.gov/subjects/nationalregister/upload/NRB16B-Complete.pdf. 4 Office of Historic Preservation, Instructions for Recording Historical Resources (California Department of Parks and Recreation, 1995):
https://ohp.parks.ca.gov/pages/1054/files/manual95.pdf. 392 of 1110
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▪ “Writing Historic Contexts”
5 ▪ “OHP Preferred Format for Historic Context Statements”6 Rincon staff conducted a “windshield” survey of San Mateo to orient the team’s understanding of the city’s built environment resources and the general patterns of development, including property types, architectural styles, and age of construction. All photographs in this Historic Context Statement were taken by Rincon in XXX 2025, unless otherwise noted.

The Historic Context Statement is divided into six chronological periods, each of which is further divided into thematic subsections that reflect the significant themes identified in San Mateo.

Following the discussion of San Mateo’s historic development, there is a summary of the various property types and architectural styles associated with each period of development followed by specific registration requirements for assessing historical significance and integrity by chronological period.

2.5 How to Use this Document
The Historic Context Statement presents a detailed citywide context that identifies important themes and patterns of development, property types, architectural styles, and registration requirements. This document was designed to function as a tool for use by the City, its residents, and property owners to better understand, interpret, evaluate, and protect San Mateo’s historical resources. This document is organized into the following major sections:
▪ Previous Surveys and Studies – This section summarizes previously conducted historic resource surveys, inventories, and evaluations completed in San Mateo, including results of a California Historical Resources Information System records search. ▪ Significant Periods, Themes, and Property Types – This section includes a framework for future property evaluations by providing a summary of significant themes and property types associated with major periods of development.
▪ Historic Context – The historic context includes six chapters, divided into chronological periods of development that are supported by important themes and patterns of development. ▪ Architectural Styles – This portion of the document provides an overview of all predominant architectural styles identified in the study area. This section includes a representative photograph of each style (organized by property type), the style’s associated period of significance in San Mateo, and a list of major character-defining features of the style. ▪ Architects, Landscape Architects, Developers, and Builders – This chapter includes an overview of all identified architects and builders associated with major periods of development in San Mateo.
▪ Guidance for Assessing Significance – This section of the document presents a discussion of the national, state, and local designation criteria. It also has an overview of the integrity requirements and also identifies associated property types, architectural styles, and registration requirements for assessing historical significance of in San Mateo. 5 Marie Nelson, “Writing Historic Contexts” (California Office of Historic Preservation, n.d.):
https://ohp.parks.ca.gov/pages/1072/files/WritingHistoricContexts.pdf. 6 Office of Historic Preservation, “OHP Preferred Format for Historic Context Statements” (California Department of Parks and Recreation, n.d.): https://ohp.parks.ca.gov/pages/1072/files/Format-for-Historic-Context-Statements.pdf. 393 of 1110
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12 ▪ References – This chapter is a complete list of references for all footnotes referenced in the document.
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14 3 Previous Surveys and Studies

3.1 Previous Surveys

3.1.1 1989 Survey and Historic Building Survey Final Report In 1988–1989, the San Mateo County Historical Association undertook a historic resources survey effort in partnership with the OHP, with the help of professionals and volunteers. The 1989 survey generally focused on the east side of El Camino Real, where the bulk of the City’s pre-1940 buildings were present.7 Buildings were evaluated for eligibility for listing in the National Register of Historic Places (NRHP) and were assigned a rating of 1–6, corresponding with its potential eligibility according to OHP’s Survey Workbook.8
As a result of the survey and evaluations, as outlined in the 1989 City of San Mateo Historic Building Survey Final Report, several buildings were recommended NRHP-eligible for individual listing, potentially NRHP-eligible pending further research, or eligible for local listing, and some were recommended ineligible for the NRHP and local listing. Additionally, two historic districts were documented and recommended eligible for listing in the NRHP, the Central Business District and the Glazenwood Residential District.
9 3.1.2 City of San Mateo Historic Preservation Ordinance At the time of the 1989 survey, the City did not have a historic preservation ordinance. In 1990, the City adopted the Revised General Plan, thereby identifying all individually eligible and contributor historic structures based on the survey report. The City adopted a historic preservation ordinance in 1993.

In November 1993, the City passed a resolution establishing the Downtown Historic District, the City’s only locally designated historic district.10 The ordinance was subsequently updated in 1995 to expand its applicability to properties throughout the city and not only properties in the Downtown Area Specific Plan and Downtown Historic District.
11 3.1.3 City of San Mateo General Plan
As part of the General Plan 2030, the City’s historic preservation ordinance was updated in 2010 to expand its applicability to buildings that met the criteria for listing in the NRHP and California Register of Historical Resources (CRHR) and were documented in a form consistent with the 1989 City of San Mateo Historic Building Survey.

In 2024, the City adopted General Plan 2040, which replaced the prior General Plan 2030. The General Plan addressed historic preservation as part of the Community Design and Historic Resources Element. Within this element, the Historic Resources section includes a goal for historic preservation (Goal CD-5), to “preserve historic and culturally important resources to maintain San 7 City of San Mateo, City of San Mateo Historic Building Survey Final Report (City of San Mateo, 1989), https://www.cityofsanmateo.org/DocumentCenter/View/47850/Historic-Building-Survey-1989. 8 Today, these are known as the California Historical Resource Status Codes and were last updated in 2020 to include more detailed information.
9 City of San Mateo, City of San Mateo Historic Building Survey Final Report. 10 City of San Mateo, Establishing the Downtown Historic District, Ordinance Number 124, 1993. 11 City of San Mateo, Amending Chapter 27.66 Regarding Historic Preservation, Ordinance Number 1995-13, 1995. 396 of 1110
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Mateo’s special identity and continuity with the past.” 12 The General Plan included corresponding
policies and actions, including Action CD 5.8 (Historic Preservation Ordinance), which has been updated in conjunction with the preparation of this Historic Context Statement, and Action CD 5.9 (Historic Resource Context Statements), the impetus for this report which states:

Prepare a citywide historic context statement to guide future historic resource survey efforts to identify individually eligible resources and historic districts. If a neighborhood is identified as a historic district, prepare a more detailed historic context statement for that individual neighborhood.

3.1.4 NRHP- and CRHR-Listed Resources
Based on review of the NRHP and OHP’s Built Environment Resource Directory, San Mateo has several NRHP- and CRHR-listed resources, as outlined in Table 1 below.

Table 1 San Mateo Properties Listed in the NRHP and CRHR Property Name Property Address NRHP-Listed CRHR-Listed
Baywood Elementary School 600 Alameda de las Pulgas X
Coxhead House 37 East Santa Inez Avenue X (NR #00000322) X De Salba Teahouse 70 De Salba Avenue X (NR #92000965) X National Bank of San Mateo 164 South B Street X (NR #97000331) X U.S. Main Post Office 210 South Ellsworth Street X (NR #88000443) X Amelia Vollers House 353 North Claremont Street X (NR #14001205) X X-100 1586 Lexington Avenue X (NR #16000381) X
Hotel St. Matthew 215 2nd Avenue X (NR #97001663) X
Yoshiko Yamanouchi House 1007 East 5th Avenue X (NR #100009653) X 220 East 3rd Avenue X
First Watch Building 201 2nd Avenue X
College of San Mateo Performing
Arts Building
1700 West Hillside Drive X
Dennis Brown Family House 5 North Delaware Street X
CRHR = California Register of Historical Resources; NRHP = National Register of Historic Places

3.2 California Historical Resources Information Center
Search
On May 5, 2025, California Historical Resources Information System staff from the Northwest Information Center, located at Sonoma State University, conducted a records search (#24-1587) for the study area (Appendix A). The Northwest Information Center is the official state repository for cultural resources records and reports for San Mateo County. The purpose of the records search was to identify previously prepared surveys, known significant resource types, resource locations, and reporting efforts and written histories. Results of the records search have been incorporated herein, as appropriate.
12 City of San Mateo, San Mateo General Plan 2040, (City of San Mateo, 2024): https://strivesanmateo.org/wpcontent/uploads/2024/07/Community-Design_5-31-24.pdf. 397 of 1110
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16 4 Significant Periods, Themes, and Property
Types
This section provides an overview of the major chronological periods discussed in the Historic Context Statement and a summary of the significant themes and property types associated with these major periods of development.

4.1 Chronological Periods
The Historic Context Statement divides the prehistory and history of San Mateo into chronologically divided periods of development, which are further divided into overarching themes:
▪ Precontact
▪ Spanish and Mexican Period (1768–1848)
▪ Early Settlement (1849–1893)
▪ Incorporation and Suburban Growth (1894–1940)
▪ World War II and Post-War Development (1941–1979)
▪ Modern San Mateo (1980–2025)

4.2 Significant Themes
A significant theme is a “means of organizing properties into coherent patterns based on elements such as environment, social/ethnic groups, transportation networks, technology, or political developments of an aera during one or more period of prehistory or history.”13 For this Historic Context Statement, significant themes have been concentrated into six themes:
▪ Residential development
▪ Commercial development
▪ Civic and institutional development
▪ Cultural and ethnic groups
▪ Transportation infrastructure
▪ Industrial development
Themes related to architectural significance are addressed in Architectural Styles (Chapter 11) and Architects, Landscape Architects, Developers, and Builders (Chapter 12).

Each chronological chapter contains a summary of events, persons, and developments of each period in San Mateo. It then includes an in-depth analysis of themes associated with the chronological period. The following describes the themes that are analyzed in each chronological chapter.
13 National Park Service, National Register Bulletin 15: How to Apply the National Register Criteria for Evaluation (U.S. Department of the Interior, 1997a), 8: https://www.nps.gov/subjects/nationalregister/upload/NRB-15_web508.pdf. 398 of 1110
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4.2.1 Residential Development
This section discusses important residential development in San Mateo within a given time period. It includes a presentation of important settlement patterns, population growth trends and changes, architectural styles, and property types. It also includes information on important persons or architects, as appropriate.

4.2.2 Commercial Development
This section presents major businesses and important figures in the development of commercial enterprise in San Mateo during a given period. It also includes a discussion of events or circumstances that influenced new commercial development or cause existing commercial development to change or end. It also describes the architecture of the city’s commercial development during a given period.

4.2.3 Civic and Institutional Development
This section discusses the growth of San Mateo’s government and significant persons and institutions such as schools, churches, fraternal organizations and women’s clubs, charitable organizations, and civic groups. It features a review of their associated property types.

4.2.4 Transportation Infrastructure
This section includes major transportation themes for a given period. This includes the arrival of the railroad and its influence on San Mateo, major transportation routes, trolley service, bridges, highways, and airfields that connect San Mateo to the region and beyond.

4.2.5 Industrial Development
This section discusses major industrial developments and important figures in the development of the city’s industrial activities during a given period. It also includes a discussion of events or circumstances that influenced how and when industries developed.

4.2.6 Cultural and Ethnic Groups
This section examines the contributions of cultural and ethnic groups to San Mateo for a given period. It includes a discussion of the influence of cultural, ethnic, and immigrant communities to the city’s physical, cultural, architectural, and commercial development.

4.3 Associated Property Types
Each significant theme includes a discussion of illustrative examples of associated property types. A property type may relate to one or more historic context themes. Property types are based on historic use and common physical or associative characteristics. Physical attributes include style, structural type, size, scale, proportions, design, architectural details, method of construction, orientation, spatial arrangement or plan, materials, workmanship, artistry, and environmental relationships.14 The discussion of each property types includes relevant architectural styles and 14 National Park Service, National Register Bulletin 16B: How to Complete the National Register Multiple Property Documentation Form (U.S. Department of the Interior, 1999), 14: https://www.nps.gov/subjects/nationalregister/upload/NRB16B-Complete.pdf. 399 of 1110
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18 building types prevalent in San Mateo during the identified period of development. The following property types were identified in San Mateo.

4.3.1 Residential Properties
Residential properties are primarily intended for personal use. They include single-family residences, townhouses, duplexes, and condominium and apartment complexes.

4.3.2 Commercial Properties
Commercial properties cater to business activities. They include retail stores, shopping malls/centers, motels and hotels, and restaurants. They also include auto-centered businesses, such as gas stations, services centers, car washes, and drive-in restaurants. Retail stores may include mixed-use buildings with combined residential and commercial uses.

4.3.3 Civic and Institutional Properties
Institutional buildings include buildings where public or civic functions are performed. While often City-owned or publicly owned, institutional buildings may be privately owned (like community centers), but usually have a public use, accessible for congregation. They can include libraries, social halls, schools, police and fire stations, churches, community centers, post offices, and hospitals.

They may also include public art, recreational properties, and designed landscapes, such as parks and plazas.

4.3.4 Transportation Infrastructure
Transportation properties are those associated with transportation and include depots, rail lines, terminals, stations, roads, highways, trails, bridges, and road-related infrastructure, such as light posts and signposts.

4.3.5 Industrial Properties
Industrial properties are where goods are made, stored, repaired, or processed. Industrial properties could include mills/factories, dairies, nurseries, canneries, warehouses, lumberyards, and light-industrial properties.

4.3.6 Cultural and Ethnic Group Properties
Properties associated with cultural and ethnic groups could be represented by any property type.

For example, they could include residences in ethnic enclave neighborhoods, commercial properties associated with a business that catered to or typified a specific ethnic or cultural group, communityserving religious properties, or institutional properties associated with a specific ethnic or cultural group.
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20 5 Precontact History of San Mateo

5.1 Precontact History
The precontact history of indigenous groups living in San Mateo County follows general patterns identified within the archaeological record of the San Francisco Bay archaeological region. The San Francisco Bay archaeological region is generally divided by the pre-contact chronology of the Bay Area into five periods: Early Holocene, Early Period, Lower Middle Period, Upper Middle Period, and Late Period.15
It is presumed that early Paleoindian groups lived in the area prior to 8000 before common era (BCE) due to evidence in Alta California and the Channel Islands.16 However, no evidence for this period has been discovered in the San Francisco Bay Area.17 Sites dating to this period may be submerged or deeply buried as a result of rising sea levels and widespread sediment deposition that has occurred since the Terminal Pleistocene.
18 For this reason, the Terminal Pleistocene Period
(c 11,700 to 8000 BCE) is not discussed here.

The earliest intensive study of archaeology of the San Francisco Bay Area began with N. C. Nelson of the University of California, Berkeley, between 1906 and 1908. Mr. Nelson documented over 400 shell mounds throughout the area. Nelson was the first to identify the Bay Area as a discrete archaeological region.
19 Table 2 San Francisco Bay Archaeological Region Prehistory Chronology Temporal
Period Date Artifact Assemblage Example Sites
The Early
Holocene
8000 to 3500 BCE Characterized by a mobile forager pattern and the presence of millingslabs, handstones, and a
variety of leaf-shaped projectile points.

CA-CCO-696; CA-CCO-637
Early Period 3500 to 500 BCE Increased sedentism with the introduction of new ground stone technologies like mortar and
pestle replaced millingslabs and handstones,
indicating a greater reliance on processing nuts,
especially acorns. Faunal evidence from various
sites during this period indicates a diverse faunal
exploitation pattern based on the presence of
mussels and other shellfish, marine mammals,
terrestrial mammals, and birds within sites
dating to this period. The earliest cut bead
horizon is also associated with this period.

CA-CCO-637; CA-SCL-832;
CA-ALA-307
15 R.T. Milliken et al., “Punctuated Cultural Change in the San Francsico Bay Area,” in California Prehistory: Colonization, Culture, and Complexity, ed. by Terry L. Jones and Kathryn A. Klar (Alta Mira Press, 2007): 99–124. 16 Duncan McClaren et al., “Late Pleistocene Archaeological Discovery Models on the Pacific Coast of North America,” PaleoAmerica 6 (2019): 43–63.
17 Milliken, R.T. et al., “Punctuated Cultural Change in the San Francsico Bay Area,” 99–124. 18 Brian Byrd et al., “San Francisco Bay-Delta Regional Context and Research Design for Native American Archaeological Resources, Caltrans District 4” (Caltrans, 2017): 3–21.
19 Michael J. Moratto, California Archaeology (Academic Press, Inc., 1984), 217. 402 of 1110
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Temporal
Period Date Artifact Assemblage Example Sites
Lower Middle
Period
500 BCE to 430 CE The presence of chipped stone points and bone tools became typical during this period.

Rectangular shell beads, common during the
Early Period, disappear completely and are
replaced by split-beveled and saucer Olivella
beads. Haliotis spp. ornaments, bone tools and
ornaments, and basketry awls also became
typical, indicating the development of coiled
basketry technology. Mortars and pestles
continued to be the dominant grinding tool.

CA-ALA-309; CA-CCO-295
Upper Middle
Period
430 to 1050 CE Around 430 CE, Olivella saucer bead trade networks that had been established during
earlier periods collapsed and over half of known
sites occupied during the Lower Middle Period
were abandoned. Olivella saucer beads were
replaced with Olivella saddle beads. New types
of material culture appear within these sites,
including elaborate, decorative blades, fishtail
charmstones, new Haliotis spp. ornament forms,
and mica ornaments. Sea otter bones became
more abundant, while salmon and other fish
became less so, suggesting changes in faunal
exploitation patterns from earlier periods. San
Francisco Bay Area individuals shifted from
hunting higher trophic-level foods in the Early
Period to gathering foods like plants and
shellfish in the Middle and Upper periods.

CA-ALA-309
Late Period 1050 CE to contact The Late Period saw an increase in social complexity, indicated by differences in burials
and an increased level of sedentism relative to
preceding periods. An increase in imported Napa
Valley obsidian occurred during this time for the
production of smaller points, preforms and
simple flake tools. Small, finely worked projectile
points of the Stockton Serrated series associated
with bow and arrow technology appear around
1250 CE. Olivella shell beads disappeared and
were replaced with Olivella-lipped and spirelopped beads in the south bay and clamshell disk beads in the north bay. Thicker and larger beads
indicated higher affluence. The toggle harpoon,
hopper mortar, and magnesite tube beads also
appeared during this period.

BCE = before common era; CE common era

5.2 Ethnohistoric Context
San Mateo is in the traditional territory of the Ohlone (or Costanoan) people. According to early ethnographers, Ohlone territory extends along the California coast from the point where the San Joaquin and Sacramento rivers merge into the San Francisco Bay to Point Sur. Their inland boundary was limited to the interior Coast Ranges. The Ohlone language belongs to the Penutian family, with 403 of 1110
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22 several distinct dialects throughout the region.20 Ethnographers divided it into eight regional dialects: Karkin, Chochenyo, Ramaytush, Awaswas, Taymen, Mutsun, Rumsen, and Chalon. 21 The pre-contact Ohlone were semi-sedentary with a settlement system characterized by base camps and seasonal reserve camps composed of tule reed houses with thatched roofs made of matted grass.22 Just outside base camps, large sweat houses were built into the ground near stream banks used for spiritual ceremonies and possibly hygiene.
23 Villages were divided into small polities, each
of which was governed by a chief responsible for settling disputes, acting as a war leader during times of conflict, and supervising economic and ceremonial activities. 24 Social organization appeared
flexible to ethnographers, and any sort of social hierarchy was not apparent to mission priests. 25 Archaeological investigations and ethnographic evidence helped inform understanding of Ohlone mortuary rituals. Cemeteries were set away from villages and visited during the annual Mourning Anniversary.
26Ceremonial human grave offerings might include Olivella beads, as well as tools like drills, mortars, pestles, hammerstones, bone awls, and used flakes.27 Ohlone mythology includes animal characterization and animism, which was the basis for several creation narratives. Ritually burying animals, such as a wolf, squirrel, deer, mountain lion, gray fox, elk, badger, grizzly bear, blue goose, and bat ray, was commonly practiced. Similar to human burials, ceremonial offerings were added to ritual animal graves like shell beads, ornaments, and exotic goods. 28 Ohlone food sources were based on hunting, gathering, and fishing. 29 Larger animals, like bears,
might be avoided, but smaller game was hunted and snared on a regular basis.30 The acorn was an important staple and was prepared by leaching acorn meal in openwork baskets and in holes dug into the sand.
31 The Ohlone also practiced controlled burning to facilitate plant growth.32 During specific seasons or in times of drought, the reserve camps would be used for gathering seasonal food and accessing food storage.
33 The Ohlone fished from tule reed canoes using nets and gorge hooks.
34 Mussels were a particularly important food resource. Sea mammals, such as sea lions and seals, were hunted, and beached whales were consumed.
35 20 Alfred J. Kroeber, Handbook of the Indians of California, Bulletin 78 (US Government Printing Office, 1925), 347. 21 Milliken, R.T. et al., “Punctuated Cultural Change in the San Francsico Bay Area,” 99–124. 22 Grant W. Schick, “The Ohlone and the Oak Woodlands: Cultural adaptation in the Santa Clara Valley, Research Manuscript No. 4” (Master’s Thesis, Santa Clara University, 1994), 12.
23 Barbara L. Jones, “Mythic Implications of Faunal Assemblages from Three Ohlone Sites” (Master’s Thesis, San Francisco State University, 2010), 27.
24 Russell K. Skowronek, “Sifting the Evidence: Perceptions of Life at the Ohlone (Costanoan) Missions of Alta California,” Ethnohistory Vol

45., No. 4 (1998): 675–708.
25 Skowronek, “Sifting the Evidence: Perceptions of Life at the Ohlone (Costanoan) Missions of Alta California,” 675–708. 26 Alan Leventhal and Diane DiGiuseppe, “Analysis of the Stone, Bone and Shell Artifacts from CA-SCL-869,” in Final Report on the Burial and Archaeological Data Recovery Program Conducted on a Portion of a Middle Period Ohlone Indian Cemetery, Katwáš Ketneyma Waréeptak (The Four Matriarchs Site) CA-SCL-869, Located at 5912 Cahalan Avenue, Fire Station # 12 San José, Santa Clara County, California (2009).
27 Leventhal and DiGiuseppe, “Analysis of the Stone, Bone and Shell Artifacts from CA-SCL-869” 3–1. 28 Kroeber Handbook of the Indians of California, Bulletin 78, 347; Les W. Field and Alan Leventhal, “What Must It Have Been Like!: Critical Considerations of Precontact Ohlone Cosmology as Interpreted through Central California Ethnohistory,” Wicazo SA Review 18(2) (2003):
95–126.; Jones, “Mythic Implications of Faunal Assemblages from Three Ohlone Sites,” 41. 29 Kroeber Handbook of the Indians of California, Bulletin 78, 347.; Skowronek, “Sifting the Evidence: Perceptions of Life at the Ohlone (Costanoan) Missions of Alta California,” 675–708.
30 Schick, “The Ohlone and the Oak Woodlands: Cultural adaptation in the Santa Clara Valley, Research Manuscript No. 4,” 12. 31 Kroeber, Handbook of the Indians of California, Bulletin 78, 347.; Richard Levy, “Costanoan.” In Handbook of North American Indians, Vol. 8, California, edited by R. F. Heizer (Smithsonian Institution, 1978): 485–495. 32 Kroeber, Handbook of the Indians of California, Bulletin 78, 467.; Skowronek, “Sifting the Evidence: Perceptions of Life at the Ohlone (Costanoan) Missions of Alta California,” 675–708.
33 Schick, “The Ohlone and the Oak Woodlands: Cultural adaptation in the Santa Clara Valley, Research Manuscript No. 4,” 12. 34 Schick, “The Ohlone and the Oak Woodlands: Cultural adaptation in the Santa Clara Valley, Research Manuscript No. 4,” 16–-17. 35 Kroeber, Handbook of the Indians of California, Bulletin 78, 84. 404 of 1110
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Seven Franciscan missions were built in Ohlone territory in the late 1700s, and all members of the Ohlone group were eventually forced into the mission system. 36 The missions, a method of Spanish
imperialism, separated missionized people from their indigenous and ceremonial practices, as well as the seasonal rhythm of their own food production practices. After the establishment of the missions, Ohlone population dwindled from roughly 10,000 people in 1770 to 1,300 by 1814.37 In 1973, the population of people with Ohlone descent was estimated at fewer than 300. The descendants of the Ohlone united in 1971 and have since arranged political and cultural organizations to revitalize aspects of their culture.
38 Today, the descendant communities of the
Ohlone can be found in multiple tribes throughout Northern and Central California. 36 Kroeber, Handbook of the Indians of California, Bulletin 78, 465.; Skowronek, “Sifting the Evidence: Perceptions of Life at the Ohlone (Costanoan) Missions of Alta California,” 675–708.; Milliken, R.T. et al., “Punctuated Cultural Change in the San Francsico Bay Area,” 99– 124.
37 Skowronek, “Sifting the Evidence: Perceptions of Life at the Ohlone (Costanoan) Missions of Alta California,” 675–708. 38 Skowronek, “Sifting the Evidence: Perceptions of Life at the Ohlone (Costanoan) Missions of Alta California,” 675–708. 405 of 1110
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24 6 Spanish and Mexican Period

6.1 Spanish Period (1769–1822)
Although Spanish, Russian, and British explorers visited the area for brief periods between 1529 and 1769, the Spanish Period in California begins with the establishment of a settlement at San Diego in 1769 and the founding of Mission San Diego de Alcalá by Franciscan Father Junípero Serra, the first of 21 missions constructed between 1769 and 1823.39 Juan Rodriguez Cabrillo led the first European expedition to observe what was known by the Spanish as Alta (upper) California in 1542. For more than 200 years, Cabrillo and other Spanish, Portuguese, British, and Russian explorers sailed the Alta California coast and made limited inland expeditions, but they did not establish permanent settlements.40 The Spanish crown laid claim to Alta California based on the surveys conducted by Cabríllo in 1542 and later survey by Sebastian Vizcaíno in 1602. 41 The 1769 overland expedition by Captain Gaspár de Portolá marks the beginning of California’s Historic period, occurring just after the King of Spain installed the Franciscan Order to direct religious and colonization matters in assigned territories of the Americas.42 Portola’s 1769 expedition is credited with the discovery of the San Francisco Bay from the hills west of present-day Millbrae, though members of the expedition did not appear to regard the discovery of the bay as anything but an obstacle at the time.
43 In 1775, San Mateo’s bay line was surveyed by Juan Bautista Aguirre and finally in 1776, Spanish arrived in San Mateo and camped. By this time, the Spanish decided that San Francisco should serve as the site of the presidio and mission in the region.44 Lieutenant Colonel Juan Bautista de Anza was charged with bringing a colony of families to settle the northern tip of the Peninsula and establish the site for the mission and the presidio. On March 26, 1776, the group crossed San Francisquito Creek and continued north where party member Padre Pedro Font reported they “came to a good-sized village situated on the banks of the Arroyo of San Matheo. It has many laurels and ash trees on its banks.”45 The area was inhabited by Ohlone and Font commented that, “they appear to be gentle Indians, and it would seem possible to form of them a good and large mission”46 (Figure 1). Anza began his return trip on March 29, 1776 and sent his group back to “Arroyo San Matheo” the way they had come, roughly following today’s El Camino Real.47 It is not known why Padre Font bestowed the creek the name San Matheo, after Saint Matthew.
39 Walton E. Bean, California: An Interpretive History (McGraw-Hill Book Company, 1968), 50. 40 Bean, California: An Interpretive History, 16–18.
41 Hubert Howe Bancroft, History of California (A.I. Bancroft & Company, 1885), 3.; Bean, California: An Interpretive History, 18. 42 Bean, California: An Interpretive History, 34.
43 Bean, California: An Interpretive History, 39.
44 Postel, San Mateo: A Centennial History, 4.
45 Herbert Eugene Bolton, Anza’s California Expeditions: Volume IV (University of California Press, 1930), 328. 46 Bolton, Anza’s California Expeditions, 329.
47 Postel, San Mateo: A Centennial History, 4.
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Figure 1 Map of Shellmounds in Vicinity of San Mateo Creek Source: San Mateo County Historical Association
The colonization of the San Francsico Peninsula began on June 17, 1776. A party commanded by Lieutenant José Moraga camped at San Mateo Creek on June 24 for three days before continuing to San Francisco to begin work on creating the Mission San Francisco de Asis and the San Francisco Presidio.48 The requirements for a good mission site were well-known and required: good access to native populations, good grazing land, and good soil and climate for crops.49 The decision to build the Mission San Francisco de Asis at Delores Creek was recognized as a mistake early on.50 Anza had reluctantly located the mission (the arm of the church) close to the presidio (an instrument of the government) in order to protect native converts and to enforce discipline, as persuaded by Padre Font and Junipero Serra. Several things were wrong with the site. There was not enough rainfall or freshwater to support crops, the sandy soil was not conducive for farming, and the native population in the vicinity was not as large as the padres had originally believed.51 Though the circumstances saddled the mission with a permanent handicap, it also created circumstances unique to the mission. The Presidio, the mission, and the existing Ohlone population were isolated on a narrow peninsula where they had to interact. From the outset, Spanish attitudes 48 Postel, San Mateo: A Centennial History, 6.
49 Frank Stanger, South from San Francisco: The Life Story of San Mateo County (San Mateo County Historical Association, 1963), 17. 50 Alan Hynding, From Frontier to Suburb: The Story of The San Mateo Peninsula (Star Publishing Company, 1982), 19. 51 Hynding, From Frontier to Suburb: The Story of The San Mateo Peninsula, 19.

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26 toward the native population made their assimilation into Spanish colonial culture impossible, while also extinguishing the possibility to gain true understanding of native traditions or experience.

Spanish conquistadors systemically destroyed the existing knowledge of the area.52 Relations between the Spanish and Ohlone tribes near the mission began when the Spanish offered token gifts and food that attracted interest. On August 12, 1776, however, a rival tribe from San Mateo Creek attacked a village near the mission site, frightening its residents who fled to the opposite shore. Unimpressed with the Spaniards’ offer to defend them, contact was retracted.53 In Spring of 1777, contact was renewed, and three days before the first anniversary of their arrival, the mission baptized its first Bay Area Native Americans.54 Slowly, other populations of Ohlone were brought to the mission. The mission listed 135 baptisms of Native Americans from the San Mateo area in 1780 and 1786.55 By 1793, virtually all native populations of the San Francsico Peninsula had been baptized. Less than half of the original Peninsula Ohlone survived by that time, having succumbed to deadly diseases like smallpox, whooping cough, venereal diseases, influenza, and mumps introduced by the Spanish.56 It was common practice for California missions to establish agricultural outposts, or asistencias or hospices, to grow food to sustain the mission. No mission was more dependent on such outposts as Mission San Francisco de Asis due to its environmental challenges. In approximately 1793, the padres established an outpost at San Mateo Creek. The San Mateo location had the circumstances for a successful settlement—good climate and soil, a location between the San Francisco and Santa Clara missions, fresh water, and a more dense native population.57 San Mateo outpost’s function was three-fold: the rites of the church would be practiced there; it would function as a base of operations for neophytes tending cattle and sheep; and it would provide storage for agricultural products.58
52 Stanger, South from San Francisco: The Life Story of San Mateo County, 19. 53 Stanger, South from San Francisco: The Life Story of San Mateo County, 19. 54 Hynding, From Frontier to Suburb, 20.
55 Postel, San Mateo: A Centennial History, 6.
56 Hynding, From Frontier to Suburb, 22.
57 Hynding, From Frontier to Suburb, 22.
58 Postel, San Mateo: A Centennial History, 9.
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Figure 2 1850 Drawing of San Mateo Hospice
Source: San Mateo County Historical Association
The outpost was constructed near the Moraga campsite. Mission records describe the first building in San Mateo as a three-room structure with a tile roof.59 By 1800, the San Mateo outpost was the center of food production on the Peninsula.60 Thirty mission-trained Native Americans lived at the outpost by this time. In 1810, the adobe was destroyed by earthquake and subsequently rebuilt larger (Figure 2). Even as Mexico was achieving independence from Spain, life at the outpost carried on as usual. Official mission documents reveal that by 1822 at least two buildings in San Mateo served as granaries.61

6.2 Mexican Period (1822–1848)
After more than a decade of intermittent rebellion and warfare, Mexico won independence from Spain in 1821. In San Mateo, change was slow. By 1822, support for the missions was cut, while the Mexican constitution removed the Spanish monopoly on free trade, allowing California ports to open to foreign merchants.62
The secularization of the missions following Mexico’s independence from Spain did not begin until 1834 under Governor Jose Figueroa. In the meantime, merchants from around the world were interested in California products such as hides and tallow. The new business created demand for land from Spanish soldiers, government officials, and pioneers. Former mission lands were subdivided for large land grant ranchos. Commonly, former soldiers and well-connected Mexican families were the recipients of these land grants, which now included the title to the land and often included mission Native Americans who became laborers in a feudal system.63 59 Postel, San Mateo: A Centennial History, 9.
60 Hynding, From Frontier to Suburb, 23.
61 Postel, San Mateo: A Centennial History, 10.
62 S.F. Dallas, “The Hide and Tallow Trade in Alto California 1822-1848,” (PhD diss., Indiana University), 1955. 63 Postel, San Mateo: A Centennial History, 13.

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28 In San Mateo, there were reportedly about 30 native Californians at the time of secularization. San Mateo was claimed by the José Argüello family, who asserted that Spanish Governor Diego Borcia awarded José Argüello 69,000 acres of land south of Rancho Buri Buri in 1795. The land, Rancho de las Pulgas, ultimately comprised of 35,000 acres was not awarded until November 1835 to the widow of Argüello’s son, Dona Maria and their children.64 During this period San Mateo remained largely unchanged. In fact, the population south of San Francico declined during the interlude of Mexican rule and did not exceed 500 persons.65
The rancheros were land rich, but cash poor and vulnerable to squatters and predatory money lenders and lawyers. As a result, after becoming entangled in years of litigation, many rancho heirs lost vast portions of their holdings. The Argüello’s, whose holdings spanned from present-day Mills Hospital to the Santa Clara County line, hired a Spanish lawyer, Simón Mezes in exchange for a generous share of Rancho de las Pulgas. By the 1838, the rancho contained 4,000 cattle and 2,000 horses and began to be populated with squatters who believed the Land Commission was not going to approve the title to the land, and ownership would default to the government presenting an opportunity for ownership.66 In 1856, however, the Argüello’s were successful at defending their full title.67
Despite secularization, the area north of San Mateo Creek, known as Rancho San Mateo, was reserved for Native Californians and the asistencia was apparently active. An embarcadero, perhaps the same used during mission times, continued to be employed with grain from the outpost.68 In 1839, the entire San Francico mission Ohlone population was moved to San Mateo by Mexican administrator W.E.P. Hartnell, bringing the population to 89 or 90.69 By 1840, the Ohlone population was endangered. In 1846, Mexican governor Pio Pico awarded the 6,000-acre Rancho San Mateo to Cayetano Arenas of Los Angeles for his work in the governor’s office. His land occupied the area between Rancho Buri Buri to the north and Rancho de las Pulgas to the south and included the area of the former outpost.
70 Arenas, however, never occupied the land and sold it to San Francisco merchants William D.M. Howard and Henry Mullus in 1846, perhaps assuming the land would be taken away by American troops who occupied the Bay Area by that time. William D.M. Howard arrived in San Francisco in about 1838 from New England. He opened a San Francisco store and acted as an agent for several New England firms. He formed a partnership with Mellus in 1845, and they purchased stock of the Hudson Bay Company’s failing business, just before the Gold Rush. 71 The United States went to war with Mexico in April 1846. The war ended in 1848 with the signing of the Treaty of Guadalupe Hidalgo just days before the announcement of the gold discovery at Sutter’s Mill, ushering California into its American period.72 64 Postel, San Mateo: A Centennial History, 14.
65 Hynding, From Frontier to Suburb, 31.
66 Stanger, South from San Francisco, 49.
67 Postel, San Mateo: A Centennial History, 15.
68 Postel, San Mateo: A Centennial History, 15.
69 Postel, San Mateo: A Centennial History, 15.
70 Philip Alexander and Charles P. Hamm, History of San Mateo County (Burlingame Publishing Company, 1916), 32. 71 Postel, San Mateo: A Centennial History, 15.
72 Postel, San Mateo County: A Sesquicentennial History, 84. 410 of 1110
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30 7 Early Settlement (1849–1893)
Because the Peninsula was close to the epicenter of the Gold Rush, it experienced its impact and change sooner and more dramatically than other parts of the state. San Francisco’s ballooning population was demanding food and lumber, and was buying, leasing, or squatting on land to make it produce. The net result was the transformation of cattle lands into community farms.73 During the following years in San Mateo, formerly undeveloped land transformed to support a burgeoning population.

7.1 Residential Development
San Mateo’s earliest residential development began with the establishment of country homes or estates of wealthy businessmen who largely made their fortunes in the early days of the Gold Rush.

For many years, the Rancho San Mateo land purchased by Howard and Mellus remained vacant.

Howard subsequently made a fortune selling real estate and retired from his partnership with Mellus in 1850.

In 1849, Howard moved to the former ranch, drove out the remaining Ohlone population, and built a small villa not far from San Mateo Creek and El Camino. He began importing cattle, becoming the first Peninsula resident to convert a rancho into a county estate.74 One component of Howard’s business was purchasing prefabricated houses from the eastern United States in the 1850s. He constructed a village of modest cottages in Happy Valley, along Market Street in San Francisco. For this own country estate in San Mateo, called El Cerrito for the small hill it sat on, it appears he purchased several prefabricated houses and combined them for a grand building on what is now De Salba Road of El Camino Real (Figure 3). Howard died in 1856, leaving the southern portion of the rancho to his widow, Agnes Poett. He left the northern portion (much of present-day Hillsborough) to his father-in-law, Dr. Joseph Henry Poett, who in turn gave the western portion to his other daughter Julia Redington. Agnes married W.M.D. Howard’s brother, George and they went on to have four children they raised in El Cerrito. After his death 1878, she married Henry Bowie in 1879.75 As a result, the Howard, Poett, Reddington families controlled most of Rancho San Mateo for decades, establishing many of the Peninsula’s great estates.76 El Cerrito became known as the Bowie Estate and was moved to Roehampton Road in 1910 and served as Hillsborough’s first town hall before being demolished in the 1930s.77
73 Stanger, South from San Francisco, 61.
74 Hynding, From Frontier to Suburb, 35.
75 Mitchell P. Postel, San Mateo County: A Sesquicentennial History (Stuart Publishing, 2007), 203. 76 Postel, San Mateo County: A Sesquicentennial History, 203. 77 John Levy, “Hillsborough’s former City Hall a reminder of the past,” The Daily Journal, January 15, 2007. 412 of 1110
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Figure 3 W.M.D. Howard’s Estate, El Cerrito
Source: San Mateo County Historical Association
Other early pioneers to San Mateo, included Captain Frederick Macondray who established an estate, Brookside, on the south side of the creek, facing the Howard estate on present-day El Camino Real. More arrived in the area to work for the Howard family and established their own houses, while few others began to sparsely populate the area, including Stephen Whipple who established a horse farm and ranch in the 1850s, no longer extant, at the present-day location of St.

Matthew’s Catholic School, at El Camino Real and Aragon Boulevard. David McLellan bought 300 acres from the Argüello holdings, where he set up his country home, in the Bay Meadows land, later replaced by a racetrack and eventual residential development. Lemuel T. Murray built a dairy ranch on much of the land in the current Hillsdale neighborhood.78 With the promise and eventual arrival of the railroad in 1863, other wealthy San Franciscans moved to San Mateo, including Charles Pohlemus, a director of the railroad, who bought most of the future downtown from the creek southward and east of El Camino. He laid out town lots during the 1860s, reserving some for houses and some for commercial uses. The rest of the land remained undeveloped for many years (Figure 4). Alvinza Hayward, an ex-lawyer from New York who made a fortune mining in Amador County, similarly purchased a several hundred-acre tract south and east of Pohlemus’s tract in the early 1860s. Hayward gradually subdivided the property for development and constructed his own estate, at the present-day corner of 9th and Palm avenues. It was a threestory, stick-style mansion (non-extant) surrounded by an extravagant private park called Hayward Park.79
78 Postel, San Mateo: A Centennial History, 34–35.
79 Hynding, From Frontier to Suburb, 92.

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32 Figure 4 1862 Map of San Mateo Prepared for Charles Pohlemus Source: San Mateo County Historical Association
In 1860, John Parrott, a San Francsico banker, purchased Macondray’s Brookside estate, on the west side of El Camino north of 5th Avenue, to serve as his summer home. Parrott updated Macondray’s house into a Second Empire-style mansion on the property in 1868 and named it Baywood (nonextant) for the property’s many trees (Figure 5). 80 Parrott’s son and six daughters married into other
wealthy families, like the Donahues, Paysons, Borels, and DeGuignes. The Parrotts and the other estate holders of this era became a social oligarchy, whose vast houses encircled the growing downtown.
80 Stanger, South from San Francisco, 106.

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Figure 5 Parrott House, c. 1868
Source: Getty Research Institute
For many years, San Mateo’s growth, including its residential expansion was only possible when large landholders subdivided their holdings for sale. Polhemus sold his San Mateo property to Peter Donahue in 1866 before it eventually passed to William H. Kohl in 1874. Kohl, an engineer and sea captain built his estate (no longer extant) in present-day Central Park, whose gates date to Kohl’s mansion.81 The city’s first residential subdivision was on the east side of Railroad Avenue, extending from San Mateo Creek southward to 5th Avenue, and eastward to present-day Eldorado Street.

Early settlers like James Byrnes (713 First Street—extant) and John Maynard (809 Lawrence Road— extant) built Italianate houses along San Mateo Creek. Local histories suggest William Sands built his residence at 45 South Delaware in the early 1860s. In 1865, John Quincy Adams Tilton bought 25 81 Postel, San Mateo: A Centennial History, 49.
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34 acres of land from the Howards, north of the Polhemus town site, and constructed a residence (36 N. Tilton Avenue—extant), but early residential development was otherwise sparse. 82 In 1888, the Howard family, capitalizing on the considerable activity brought to San Mateo from the nearby construction of the Crystal Springs Dam, subdivided land north of San Mateo Creek to Poplar Avenue and from the railroad tracks to Delaware for the Western Addition subdivision. 83 The Borel
family subdivided the area south of Monte Diablo Avenue, east of El Dorado Street to San Mateo Creek. Though more landholders like Howard and Borel began to parcel land for sale in the late 1880s, during the 1890s, the city limits extended just a few blocks beyond Polhemus’s 1862 plat (Figure 7). These earliest residential subdivisions occurred in what is known today as San Mateo’s Central neighborhood and Western Addition. Although land was subdivided, it was slow to develop.

Examples from this period of residential development typically included wood-frame one- and twostory buildings on several blocks of Claremont and Delaware streets, and a handful of examples from this period are still present (Figure 6). The city’s south end, however, was generally occupied by stock farms and grain fields that did not become residential areas until the twentieth century, while the bayside was tideflats.

Figure 6 Example of Early Residences in San Mateo’s Central Neighborhood, 45 South Delaware (L) and 809 Lawrence Road (R)
82 City of San Mateo, City of San Mateo Historic Building Survey Final Report (City of San Mateo, 1989):
https://www.cityofsanmateo.org/DocumentCenter/View/47850/Historic-Building-Survey-1989. 83 Hynding, From Frontier to Suburb, 76.
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Figure 7 1888 Parcel Map of San Mateo
Source: San Mateo County Historical Association

7.2 Commercial Development
San Mateo’s early commercial development began with the establishment of a stagecoach stop along the old mission trail between San Francisco and San José in 1849. As a result, a few commercial structures were established in the area. Recognizing the business opportunity of the stagecoach traffic, Nicholas de Peyster, a New York merchandiser moved into the old outpost in San Mateo with a partner and sold liquor and whatever merchandise he thought travelers would want.84 He operated the location for a year before purchasing a portion of Rancho de las Pulgas, in San Mateo’s present downtown, and constructed the San Mateo House. 85 In 1856, David S. Cook bought
out de Peyster, which had been enlarged with a prefabricated building from the east coast.86 In 1857, San Mateo House was sold to a partnership of Stockton and Shafter, and it was used as a stagecoach stop for the Butterfield Stage, which traveled between Missouri to San Francisco.87 The house was sold to Tony Oakes in 1863 and Captain Edward Taylor in 1863 who moved it away from the road for his residence and added to the house a second time (Figure 8). Located at the presentday location of Mills Hospital at El Camino Real and 2nd Avenue, it was demolished in 1964 for a parking lot.
84 Stanger, South from San Francisco, 65.
85 Postel, San Mateo: A Centennial History, 26.
86 David Fredricks, “Life of the San Mateo House,” The Daily Journal, March 3, 2014. 87 Fredricks, “Life of the San Mateo House.”
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36 Figure 8 1875 Image of San Mateo House
Source: Careleton Watkins, The Sun Sketches of San Mateo Album, University of California, Berkeley Bancroft Library By 1860, there was stagecoach service between San Mateo and the coast. San Mateo’s advantageous location at the east end of the Peninsula’s main road to the coast supported limited commercial development, and during this period San Mateo had a grain and feed store, a livery stable, a blacksmith, and two saloons.
88 But, without a strong industry or commercial force, there was not enough activity to stimulate significant growth, trade, or development. 89 Commercial development emerged significantly in the years after the railroad was constructed in 1864.90 With the arrival of the railroad, the sparse development that had begun along the old mission trail shifted east toward the location of the tracks. San Mateo’s commercial downtown began to radiate from the rail station, beginning along Main Street and Railroad Avenue. B Street, one block west of the railroad station, eventually developed as a major thoroughfare. During the 1880s, however, the city’s downtown was plagued by a series of fires in 1880, 1883, and 1887 that destroyed early commercial buildings and their businesses.91 By 1888, the first Sanborn fire insurance map shows that commercial development along Railroad Avenue included the Union Hotel (1883), a grocer, dry good stores, and a saloon (non-extant).

Development along A and B Street between 2nd and 5th Streets included a mix of residential and commercial uses like general stores, boarding houses, a restaurant, and a saloon concentrated along 88 Hynding, From Frontier to Suburb, 94.
89 Hynding, From Frontier to Suburb, 92.
90 Postel, San Mateo: A Centennial History, 39.
91 Donald P. Ringler, San Mateo, USA: The Golden Years (City of San Mateo Bicentennial Committee, 1975), 17. 418 of 1110
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B Street.
92 It also included the first service storefronts or workshops, like the plumber/carpenter at the corner of Fourth and B Streets and Robert Wisnom’s lumberyard at B Street and 2nd Street.

Additional commercial uses located on the east side Railroad Avenue, between 2nd and 5th Streets, were less dense and included lodgings, saloons, and livery stables. Buildings were individual buildings and generally occupied only a portion of the parcel, though mostly wood structures began to be replaced by more permanent brick buildings during this period (Figure 9). The Spring Valley Water Company, who was amid constructing the Crystal Springs Dam west of the present city limits to provide drinking water to San Francsico and the Peninsula, had a warehouse structure just south of the San Mateo Creek, along a block of rail line. The warehouse appears to have been removed shortly following completion of the dam in 1889.93 During this period, the streets were unpaved and what sidewalks that were present were wood.94
Because of the town’s railroad stop and stage station, San Mateo was a popular place for estate residents to do business before going back to their estates, tourists to stop on their way to the coast, or coastal dwellers to stop on their way to do business in Redwood City or San Francisco. As such, businesses were generally limited to those that met basic needs and lodging for overnight trips. Despite having a railroad stop and a stage station, there was little to hold a visitor in town for very long.

Figure 9 ca.1883 View of B Street
Source: San Mateo Public Library, San Mateo Local History Collection Though San Mateo experienced somewhat slow commercial growth in the decades after the arrival of the railroad in 1864, several important emerging local businesses were established during this period. Robert Wisnom, born in Northern Ireland, arrived in San Mateo in 1868 to work as a 92 Sanborn Map Company, Sanborn Fire Insurance Map from San Mateo, San Mateo County, California, 1888. 93 Sanborn Map Company, Sanborn Fire Insurance Map from San Mateo, San Mateo County, California, 1891. 94 Postel, San Mateo: A Centennial History, 39.
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38 carpenter at the Parrott estate. Wisnom subsequently settled in San Mateo and became the area’s best-known builder, responsible for the construction of Union Hall (1874; non-extant) and many early residences (56 North Claremont non-extant and 707 First Avenue extant). He also opened a successful lumber business downtown and the city block outlined by B Street, Ellsworth Street, 2nd Street, and 1st Street was known as the Wisnom Block (non-extant). (Figure 10). 95 In 1889, Richard Jury and Charles Kirkbride founded the town’s first newspaper, San Mateo Leader.

It went on to be consolidated with another local paper in 1914 to be a countywide paper before merging with the San Mateo Times in 1926.96 In 1892, the San Mateo Gas Light Company was incorporated by early San Mateo residents James Byrnes, E.A. Husing, Julius Wiesnder, William Nolden, and John P. Weller, and became part of Pacific Gas and Electric in 1905.97 Figure 10 Wisnom Carpenter and Builder Shop, 1880s
Source: San Mateo Public Library, San Mateo Local History Collection

7.3 Civic and Institutional Development
Before San Mateo’s incorporation in 1894, its development evolved from a collection of estates to a small village, with a nascent population with growing practical governance and community needs. 95 “Robert J. “Big Bob” Wisnom,” Find a Grave, accessed October 1, 2025, https://www.findagrave.com/memorial/87334134/robert_jwisnom. 96 Postel, San Mateo: A Centennial History, 100.
97 Postel, San Mateo: A Centennial History, 100.
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Before 1887, the city lacked a fire department and the series of fires in the commercial core in the 1880s highlighted the need for an organized fire service. The initial attempt to organize a local fire department began in 1885 by a group of local men that included A.T. Bartlett, J.H Bickford, John Moore, W.J. Price, and H.F. Barrows. Barrows was elected the foreman and took the charge to gather equipment, which originally consisted of a small hand pump donated by Captain Kohl and three fire hydrants donated by Howard. Though the hydrant locations, concentrated along 3rd Avenue and A and B streets, were convenient, the lack of fire hoses made their widespread use impossible and the first attempt at a department was short-lived.98 In 1881, an order of the Ancient Order of United Workman was organized. It was followed a few months later by a lodge of the Amerion Legion of Honor. In December 1883, a parlor of the Native Sons of the Golden West was created with county-wide representation. In 1882, the women of St.

Matthew’s Guild wanted to establish a reading room and library. They organized that same year, welcomed all denominations, and became the social and cultural center of San Mateo. The building replaced an earlier structure, Wisnom Hall, which had served as the de facto community hall until it burned in 1883. The Library Hall building, constructed through donations including Antoine Borel’s donation of the lot on B Street, was a long, brick building that had rooms to host all the local organizations and a library in one room.99
In 1887, a second attempt to establish a fire department proved more successful. Five local men, drugstore owner Charles M. Moore; blacksmith William H. Brown, saddlery shop owner George A.

Bartlett, Fisher Hotel owner Charles J. Hatch, and William Babcock Lawrence of the Spring Valley Water Company met in Library Hall and decided to call for a public meeting to create an official fire department. The day the meeting was meant to happen, April 6, a fire broke out at Library Hall destroying the newly constructed community building.100 The blaze was extinguished with the help of the Redwood City fire department. Though the citizens were exhausted from the day’s events, the meeting occurred and the community agreed a fire department was needed. On May 7, 1887, the San Mateo County Board of Supervisors appointed a fire commission consisting of William Price, E.A. Husing, and James Byrnes. Shortly thereafter the commission raised money to buy equipment, and a volunteer department was established. 101
Library Hall was rebuilt through donations from the community and Robert Wisnom constructed a new, two-story building that contained the fire station and livery on the ground floor with a public hall and library upstairs. 102 Library Hall was later destroyed in the 1906 Earthquake (Figure 11). 98 Jeff Brile ed., San Mateo Fire Department 1887-1990, (San Mateo Fire Department, 1990), 10. 99 Postel, San Mateo: A Centennial History, 87.
100 Postel, San Mateo: A Centennial History, 91.
101 Jeff Brile, San Mateo Fire Department 1887-1990, 10. 102 Postel, San Mateo: A Centennial History, 95.
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40 Figure 11 Library Hall in 1906 after the Earthquake
Source: University of Southern California
Schools
By the 1860s, San Mateo had two private schools—Laurel Hall for girls and St. Matthew’s Hall for boys. Laurel Hall was founded by educator Miss L.A. Buckmaster. A native of New York, she arrived in California in 1856 and worked in the Sacramento area before moving to Oakland in 1861, following a flood that closed her school. Buckmaster met Charles Polhemus in 1862, and he told her of the railroad that would soon connect San Mateo to San Francisco. Believing it sounded like a good opportunity to establish a new institution, she bought 27 acres from San Mateo pioneer David S. Cook in 1863.103 Architect S.C. Bugbee designed a Second Empire building for the school, whose first trustees included many members of San Francisco and Peninsula society like George H. Howard, Alvinza Hayward, A.H. Houston, Frederick Billings, Benjamin Lathrop, Thomas Shelby, F.F. Low, James Bolton, D.O Mills, R.B. Sneath, and E.A. Easton (Figure 12). 104 The school (non-extant), located
on present-day Alameda de Las Pulgas, east of the Peninsula Gold and Country Club, opened in 1864 with 11 students and grew to be a prestigious institution by the 1870s. An advertisement for the school from 1877, lauds the geographical and educational benefits of the school (Figure 13).105 In 1875, Buckmaster returned east to publicize her efforts. The school was run by Reverend George Herbert Watson in her absence, and the school flourished for several years. Buckmaster returned in 1878 but fell ill thereafter. Despite efforts by alumni to save the school, it closed in 1887. 106 103 Postel, San Mateo: A Centennial History, 61.
104 Postel, San Mateo: A Centennial History, 61.
105 Advertisement, “Laurel Hall, San Mateo, Cal.,” The Churchman, August 11, 1877. 106 Postel, San Mateo: A Centennial History, 61.
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The property was subsequently rented to Professor John Gamble, who operated a private school for boys, known as Laurel Hall College (Figure 14).
107 The property was acquired by the Episcopal Bishop
of San Francisco for the operation of the Armitage Orphanage until it closed in 1912. 108
Figure 12 Stereograph of Laurel Hall School, c. 1880
Source: California State Library, Watkins, Carleton E. Laurel Hall, San Mateo, San Mateo Co., Cal. San Francisco: Watkins, n.d.

Figure 13 1877 Advertisement for Laurel Hall School
Source: The Churchman, August 11, 1877.
107 “Laurel Hill College,” San Francisco Call Bulletin, May 29, 1891, https://www.newspapers.com/image/92948661/?match=1&terms=%22gamble%22%20%22laurel%20hall%22%20%22san%20mateo%22. 108 “Bishop Armitage Orphanage,” San Mateo County Genealogy, accessed October 8, 2025, https://legacy.sfgenealogy.org/sanmateo/history/smorphan.htm. 423 of 1110
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42 Figure 14 1888 Advertisement for Gamble’s Laurel Hall College Source: Pacific Rural Press, September 29, 1888. https://cdnc.ucr.edu/?a=d&d=PRP18880929.2.39.2&e=-------en--20--1--txt-txIN-------- .

In 1866, Episcopal Reverend A.L. Brewer founded St. Matthew’s Hall, a boys military academy.

Originally located on South Ellsworth, a new three-story school was constructed in 1872 on Baldwin Avenue, east of San Mateo Episcopal Church (Figure 15). By the 1880s, the school reputation was well-known, even outside the United States. In 1881, the King of Sandwich Islands visited San Mateo and toured the school, which required students to be in full military dress. 109 Soon after, sons from
the most influential Hawaiian families came to San Mateo. Princes David La‘amea Kawānanakoa, Abel Edward Keliʻiahonui, and Jonah Kūhiō Kalanianaʻole were among Pacific Islanders who attended the school. During their time in the area, they apparently introduced surfing to the mainland, at the mouth of the San Lorenzo River in nearby Santa Cruz.110 The school subsequently moved to Hillsborough. The buildings were reused for St. Margaret’s School for girls, which shuttered in 1892.111
In addition to private schools that drew student populations from the area’s wealthy families and beyond, the growing community had an established school district and one-room school building on County Road, present-day Notre Dame Avenue and El Camino Real, by the mid-1860s. By 1871, there were 75 students attending San Mateo School, and the residents realized that a more adequate school was needed (Figure 16). In September 1871, a bond measure passed to construct a new school building with two classrooms, with expansion plans for two more. The old school was moved away from the road and the new school was constructed in front of it. The school building 109 Postel, San Mateo: A Centennial History, 65.
110 Chloe Veltman, “How 3 Hawaiian Teen Princes Brought Surfing to the Mainland,” National Public Radio, August 31, 2025, https://www.kucb.org/2025-08-31/how-3-hawaiian-teen-princes-brought-surfing-to-the-mainland. 111 Architectural Resources Group, Saint Matthew’s Episcopal Church Historic Resource Evaluation, 2010. 424 of 1110
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burned in about 1891. Following the fire, the school operated from several locations, and planning for a new school began immediately. 112
In 1892, a strategy was adopted to construct two new schools—one at the center of town and one in the outskirts. The school at the center of town was constructed on a 3-acre site at today’s Second Avenue and Baldwin Avenue, between San Mateo Drive and B Street. Fittingly named Central School, it was a two-story wooden building with two classrooms (Figure 17). The school opened in 1893 with Etta Tilton serving as Principal.113 The same year, the Homestead School was constructed at today’s Gum Street, near the Borel Estate. Intended to accommodate the more rural students, it was primitive and nearly obsolete when it opened. It closed in 1914, while Central School continued to operate until 1922.
114
Figure 15 Undated Postcard of St. Matthews Hall
Source: San Mateo Public Library, San Mateo Local History Collection 112 Postel, San Mateo: A Centennial History, 67.
113 Postel, San Mateo: A Centennial History, 122.
114 Postel, San Mateo: A Centennial History, 123.
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44 Figure 16 Undated Photo of San Mateo School
Source: San Mateo Public Library, San Mateo Local History Collection Figure 17 Undated Photo of Central School
Source: San Mateo County Historical Association
Churches
San Mateo’s first church was St. Matthew’s Catholic Church. Irish priest Father Dennis F. Dempsey established a parish in San Mateo in 1863. He had served his apprenticeship at St. Mary’s Cathedral in San Francisco and worked in Sacramento and Auburn before being assigned to San Mateo County Image Redacted Pending Permission for Use
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and portions of Santa Clara County in 1862.
115 The first St. Matthew’s Catholic Church was
constructed on land donated by Polhemus at the southwest corner of 3rd Street and Ellsworth Avenue. The small wood-frame Gothic Revival structure opened in February 1864.116 It was replaced by a more permanent brick structure in 1889 (Figure 18). The Sanborn map from 1891 depicts the church on the corner, with a small building to its west that was used as a school room (Figure 19).

The same year, Episcopal Reverend G.A. Easton arrived in San Mateo, and held services in the San Mateo Young Ladies Institute. On his recommendation, he was proceeded by Revered A. L. Brewer from Detroit in 1865, who had been sent by the Episcopal Board of Mission to take control of San Mateo and Redwood City congregations. In June 1865, a meeting was held at George Howard’s residence where he pledged a portion of his property to construct a church. Other members of the community raised money for its construction. The building’s design was donated by Albert H.

Jordan, who along with Howard and Edward Taylor served as church leadership. The building was completed and consecrated on May 23, 1866.117 It was constructed with stones quarried from the Howard estate, apparently becoming the first stone church in California. The building measured 40 feet by 70 feet and had seating for 200. The ceiling was of varnished wood and the windows had geometric tracery (Figure 20). The glass for the chancel window was made in Belgium and the window frame was made in New York. The northern end of the church had a mortuary chapel with a massive monument to the memory of Howard’s father, William Davis Merry Howard, and his widow Agnes Poett Howard.118
Figure 18 Cornerstone Laying at St. Matthew’s Catholic Church in 1889 Source: San Mateo Public Library, San Mateo Local History Collection 115 Ringler, San Mateo, USA: The Golden Years, 15.
116 “History,” St. Matthew Catholic Church, accessed October 3, 2025, https://www.stmatthew-parish.org/about/history. 117 The Reverend Robert Louis Semes, Of These Stones: An Historical Sketch of the Church of Saint Matthew San Mateo, California 1865- 1990 (Church of Saint Matthew, 1990), 1.
118 The Reverend Robert Louis Semes, Of These Stones, 2. 427 of 1110
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46 Figure 19 1891 Sanborn Depicting Catholic Church
Figure 20 Image of St. Matthew’s Episcopal Church on Howard Estate Source: The Episcopal Church of Saint Matthew
In 1862, San Mateo’s Congregationalists began meeting after a visit from Redwood City’s acting pastor J.S. Zelia. A month later Reverend J.H. Warren conducted the first service in the schoolhouse.

In 1864, 10 members decided to incorporate into as the Congregational Church of San Mateo.

George Howard also gifted the land for construction of the Congregational church, at the corner of Tilton Avenue and North Ellsworth (Figure 21).
119 The land included the construction of a parsonage
for Reverend J.H. Warren, the congregation’s first pastor, in 1864. In 1869, a simple wood church was constructed.120The Congregational church was the smallest of the local churches. In its first five years, it had four different ministers. By 1884, the church had just 15 members.121 119 Postel, San Mateo: A Centennial History, 60.
120 “A Little Background,” Congregational Church of San Mateo, accessed October 2025, https://ccsm-ucc.org/welcome/#background. 121 “A Little Background,” Congregational Church of San Mateo, accessed October 2025, https://ccsm-ucc.org/welcome/#background. 428 of 1110
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Figure 21 Congregational Church of San Mateo, 1869
Source: Congregational Church of San Mateo
Cemeteries
The first cemetery was established in 1877 by Agnes Tilton. She founded a 20-acre cemetery near her house at present-day 36 North Claremont Street (extant). She named the cemetery Evergreen, and it served the community for about eight years, before being moved up the hill to St. John’s Cemetery.122 Founded in 1885 with land donated by Abby M. Parrott to the Roman Catholic Church, the cemetery was named St. John’s to honor her late husband, John Parrott. When founded, the cemetery had sections for Catholics, Protestants, and paupers.123

7.4 Transportation Infrastructure
The County Road, now known as El Camino Real was the earliest regional connection. A string of roadhouses or mile houses developed along El Camino Real to serve stagecoaches. The first stagecoach service was founded shortly after the Gold Rush. Later that year, John W. Whistman started the first service to connect San Francisco to San José. The service was uncomfortable and consisted of a wagon with benches pulled by mules. In San Mateo, Nicholas de Peyster’s Half Way House, so named for being the half-way point between the journey from San Francsico to San José, was a resting stop for travelers.124
The most important transportation development during this period was the arrival of the railroad in 1864. Charles B. Polhemus, the director of the San Francisco-San José Railroad, formed the company with Timothy G. Phelps in 1859. Following approval from the California State Legislature, construction began to connect San Francisco, San Mateo, and Santa Clara counties. Anticipating growth of the railroad, Polhemus purchased several parcels of land in San Mateo, and as previously 122 Postel, San Mateo: A Centennial History, 51.
123Samantha Weigel, “Uncovering history in San Mateo: St. John’s Cemetery has lineage of caretakers, formative family,” The Daily Journal, October 31, 2014.
124 Postel, San Mateo County: A Sesquicentennial History, 109. 429 of 1110
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48 described, laid out the plan for today’s downtown. The railroad faced construction challenges because of the Civil War: materials were often delayed, and there were labor shortages.125 Despite delays, by 1864, the rail line had two passenger trains and one freight train daily. It included four stops in Santa Clara County and seven in San Mateo County, including in San Mateo. The success of the line led to its purchase by the Big Four, the name given to the railroad tycoons who funded the Central Pacific Railroad, in 1870, as part of their consolidation of railroads after the completion of the transcontinental railroad in 1869.126 The line eventually became part of the Southern Pacific Railroad. Despite the connection of the railroad, San Mateo County, including San Mateo did not immediately boom with increased development. In the nineteenth century, San Mateo County was the slowest growing county in the Bay Area.127 This was largely because the land was held by a few affluent estate owners who retained land along the rail route. Their ownership contained development that typically encouraged economic activity. In San Mateo, the Howard, Poett, Redington families held tight control of their property. Generally, estate owners did not begin to parcel out their land until the late 1880s.

Even with the arrival of the railroad, stagecoaches continued to furnish important freight, mail, and passenger service. The railroad was slow to expand, and only one line served the Peninsula. As coast side and bayside communities grew, stagecoaches over the mountains became more important.

During this period, three toll roads were constructed to connect the coast to the bayside, and stagecoach services connected passengers arriving by rail to San Mateo from San Francisco to Pescadero (Figure 22).
128
125 Postel, San Mateo County: A Sesquicentennial History, 112. 126 The Big Four included Leland Stanford (1824-1893), Collis Potter Huntington (1821-1900), Mark Hopkins Jr. (1813-1878), and Charles Crocker (1822-1888).
127 Postel, San Mateo County: A Sesquicentennial History, 116. 128 Postel, San Mateo: A Centennial History, 56.
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Figure 22 Stagecoach at San Mateo Rail Station
Source: San Mateo County Historical Association

7.5 Industrial Development
During this period, San Mateo saw little industrial development. Construction projects like the railroad in 1864 and Crystal Springs Dam in 1887 brought support services to the area for the duration of the projects, but San Mateo did not have a main economic driver like neighboring communities, such as whaling and fishing on the coast, and logging in Redwood City and Woodside.

7.6 Cultural and Ethnic Groups
Irish
The largest single ethnic group to reside in San Mateo County during this period were Irish immigrants.129 Though there were Irish immigrants in the region in the years before the Gold Rush, their population flourished after 1849. Drawn by the promise of success and escaping the Great Famine (1845–1852), waves of Irish immigrants arrived in the United States during this period.

Compared to Irish who emigrated to the East Coast; however, Irish on the West Coast were able to take advantage of the state’s nascent status and were moved ahead economically, socially, and politically with more ease.130
In San Mateo, Robert Wisnom from County Ballycarry, arrived in 1868. He worked for the Parrott family, building their mansion. In his first year, however, he purchased a plot of land on B Street and 129 Postel, San Mateo County: A Sesquicentennial History, 144. 130 Hynding, From Frontier to Suburb, 163.

Image Redacted Pending Permission for Use
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50 Fourth Avenue. As previously described, he established several businesses and constructed many of San Mateo’s early residences. He later went on to become a prominent San Mateo resident.131 The big work projects in the area—the railroad and the Crystal Springs Dam construction—drew Irish immigrant laborers, many of whom stayed in the area and settled. In the 1860s and 1870s, the Fenians, a political organization for Irish causes, held fundraising picnics throughout San Mateo County. In 1866, the Fenian picnic in San Mateo drew 15,000 people.132 Chinese
The second largest ethnic population in San Mateo during this era was the Chinese. Similar to the Irish, their presence in the area before the Gold Rush was nominal. By 1880, however, there were 600 Chinese residents in San Mateo County. Faced with labor issues to construct the railroad during the Civil War, Chinese immigrants were employed to construct the San Francisco–San José Railroad.

The success of their labor was noticed by the Big Four, and they were hired to build the western section of the transcontinental railroad. After the railroad was completed in 1869, however, thousands of Chinese laborers were released from their jobs.133 Many came back to San Mateo County. Some worked successfully in shrimp and oyster harvesting in the bay. As shrimp harvesters, they set up shrimp camps along the bay often referred to as “China camps.”
134 At the industry’s peak in 1892, the bay off San Mateo County near present-day Coyote Point was the leading producer of shrimp on the west coast.135 Prior to the 1880s, most cheap labor in the region was done by the Chinese. The Chinese Exclusion Act of 1882, which barred further immigration from China and reflected anti-Asian sentiment spreading countrywide. In San Mateo, however, racial tensions were less explosive than there were in other parts of the state and country.

The absence of industrial working conditions and urban congestion may have been a factor, as immigrant labor was not a threat to livelihood. Most Chinese on the Peninsula were men from South China and worked on the great estates as laborers, cooks, and domestic servants. Hayward hired many Chinese laborers to reclaim marshlands, dig ditches, and lay pipes to carry water from the hills to bayside farms.136 The Sanborn map from 1891 shows that there were also several Chinese businesses in San Mateo during this period. They included a wash house and grocer on 2nd Street and B Street, a second wash house on B Street and 2nd Street, and third Chinese wash house on B Street and 3rd Street (Figure 23). Though the Chinese did enjoy some community acceptance and involvement, they were deprived of political liberty and endured segregation while their position steadily improved.137
131 “Robert J. “‘Big Bob’ Wisnom,” Find a Grave, accessed October 1, 2025, at https://www.findagrave.com/memorial/87334134/robert_jwisnom. 132 Postel, San Mateo County: A Sesquicentennial History, 148. 133 Postel, San Mateo County: A Sesquicentennial History, 150. 134 Joan Levy, “Chinese fish camps once lined the Bay,” The Daily Journal, July 10, 2019. 135 Hynding, From Frontier to Suburb, 85.
136 Hynding, From Frontier to Suburb, 166.
137 Sanborn Map Company, Sanborn Fire Insurance Map from San Mateo, San Mateo County, California, 1891. 432 of 1110
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Figure 23 1891 Map of San Mateo Showing Cluster of Chinese Businesses African Americans
Before the incorporation of San Mateo in 1894, it had a small population of African Americans. After the establishment of the railroad in 1864, some African American families settled in San Mateo. Tom Ricks operated a restaurant in one of the early hotels, the Railroad House. By the end of the 1870s, the town’s only barber shop was run by J. J. Adams, who had also served on a Grand Jury. The African American population remained small in the following years and increased with the city’s suburban growth in the following decades.138
138 Postel, San Mateo County: A Sesquicentennial History, 77. 433 of 1110
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52 8 Incorporation and Suburban Growth
(1894–1940)
The City of San Mateo incorporated in 1894. The trustees were made up of the following group of prominent local figures: Captain Payson, husband of Abby Parrott; businessman and builder Robert Wisnom; Marine architect George W. Dickie; storeowner Charles Herbst; hotel and saloon propriety Harry Hatch.139 The decades following incorporation and into the twentieth century marked a new phase of growth and development for the city as the city began to follow a typical pattern of suburbanization. At the beginning of this period of development, San Mateo’s population was under 2,000 residents.
140 The city’s immense growth during this period was spurred dramatically following the 1906 earthquake and fire on April 18, 1906. Though San Mateo did sustain damage, it was not equally ravaged as San Francisco. Beginning in the days after the earthquake, refugees began to filter into San Mateo, some arriving on foot, carrying their remaining possessions and some arriving via railroad.141 Following the earthquake, thousands of San Franciscans decided to move to the suburbs permanently and rapid suburbanization followed, including new residential developments, new commercial enterprises, improved and more robust transportation, and the arrival of more ethnic communities. By the end of this period, San Mateo’s population reached nearly 20,000 residents, marking a significant period of population and physical growth for the city.142

8.1 Residential Development
During this period, the scant residential subdivision that began in the late 1880s by Howard and Borel ballooned. By the late nineteenth century, the possibility of living outside cities was within reach of many more people. The increased availability of land and the improved ability to travel with ease encouraged more residential development in San Mateo.143 Subdivisions began to radiate from San Mateo’s business district, and many the result of the formerly large estates being split up.

The previously platted subdivisions by Howard and Borel that made up San Mateo’s central neighborhood began to be more densely developed. Sanborn maps from 1897 show that, following incorporation, residential development increased on the east and west sides of Railroad Avenue, from Tilton Avenue to 5th Avenue.144 Typical development included one-to-two story wood frame single-family residences.145 Examples of houses during this period include those constructed by Robert Wisnom for William H. Brown and Dennis Brown at 2 and 5 South Delaware Street (extant) (Figure 24).
146
In 1895, 62 acres of the former Howard/Bowie estate was subdivided for San Mateo Heights, located east of El Camino Real and north of Bellevue Avenue, extending to North Delaware Street to 139 Ringler, San Mateo, USA: The Golden Years, 21.
140 “San Mateo, Decennial Census Data,” Bay Area Census, accessed October 9, 2025, at https://census.bayareametro.gov/historicaldata/1860-1940/san_mateo. 141 Postel, San Mateo: A Centennial History, 133.
142 “San Mateo, Decennial Census Data,” Bay Area Census, accessed October 9, 2025, at https://census.bayareametro.gov/historicaldata/1860-1940/san_mateo. 143 City of San Mateo, City of San Mateo Historic Building Survey Final Report (City of San Mateo, 1989), 14. 144 Sanborn Map Company, Sanborn Fire Insurance Map from San Mateo, San Mateo County, California, 1897. 145 Sanborn Map Company, Sanborn Fire Insurance Map from San Mateo, San Mateo County, California, 1897. 146 Jeff Cintel, “Downtown San Mateo Historical Tour,” April 1991, 11. 434 of 1110
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the east and State Street to the north (Figure 26).
147 Suburbanization began, and the city’s proximity
to San Francisco made commuting possible for residents who worked in the city but preferred a “country” environment. A newspaper article of the time noted that the “the town of San Mateo and its environments have advantages which other suburbs do not possess, the most prominent being its accessibility to San Francisco without water transportation.”148 The neighborhood began with “cottages and villas” with both year-round and seasonal residents.149 Architect Ernest Coxhead built and designed numerous residences and churches in the Bay Area. He constructed his own summer residence in San Mateo at 37 East Santa Inez Avenue (extant) in approximately 1893 (Figure 25).
150 Built in the First Bay Tradition, it was soon joined by other houses. Sanborn maps from 1897 and 1901 show that the burgeoning community spread north along North Ellsworth, Catalpa, Tilton Avenues, and San Mateo Drive.151 Early residents of the neighborhood were from the professional class and held positions such as lawyers, doctors, architects, and entrepreneurs. Houses were built in popular revival styles of the period and included Colonial Revival, Renaissance Revival, and Shingle Style.152In the first decades of the twentieth century, the neighborhood continued to grow with more modest houses, especially following the 1906 Earthquake. Houses included more examples of Neo-classical and California bungalows, Shingle-style cottages, and later period revival houses.153 Figure 24 2 South Delaware Street,
Current View
Figure 25 37 East Santa Inez Avenue,
Current View
147 City of San Mateo, City of San Mateo Historic Building Survey Final Report (City of San Mateo, 1989), at https://www.cityofsanmateo.org/DocumentCenter/View/47850/Historic-Building-Survey-1989. 148 “Miscellaneous Items,” The San Francisco Call Bulletin, July 22, 1895, at https://www.newspapers.com/image/80996139/?match=1&terms=%22water%20transportation%22. 149 “Miscellaneous Items,” The San Francisco Call Bulletin, July 22, 1895, at https://www.newspapers.com/image/80996139/?match=1&terms=%22water%20transportation%22. 150 Patricia Osborn, “Coxhead House, San Mateo County, California,” National Register of Historic Places Nomination Form (Washington, DC: U.S. Department of the Interior, National Park Service, 2000). 151 Sanborn Map Company, Sanborn Fire Insurance Map from San Mateo, San Mateo County, California, 1897 and 1901. 152 City of San Mateo, City of San Mateo Historic Building Survey Final Report, 28. 153 City of San Mateo, City of San Mateo Historic Building Survey Final Report, 29.

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54 Figure 26 Advertisement for San Mateo Heights
Source: San Francisco Call Bulletin, July 21, 1895
The next subdivisions established during this period were San Mateo Park and Haywood Park. San Mateo Park was established when real estate developers Baldwin and Howell, comprised of Archibald S. Baldwin (1858–1924) and Josiah R. Howell (1868–1916), purchased 400 acres northwest of town on property previously owned by Stephen B. Whipple.154 Whipple ran a successful horse ranch on the property before it was transformed for an estate and eventually sold to Charles Clark in the 1890s.155 In 1902, the firm hired Australian Civil Engineer Davenport Bromfield (1862–1954) to survey the land and design the subdivision layout.156 Bromfield’s plan retained the former estate’s country atmosphere by designing the roads to follow the undulating landscape. Bounded by El Camino Real on the east, Occidental Avenue to the west, Poplar Avenue to the south, and Barroilhet Avenue to the north, Bromfield reinforced the country atmosphere with planting shrubs and trees. In 1904, Bromfield purchased a lot on Occidental Avenue to construct his own house, 537 Occidental Avenue (extant) (Figure 27).157 In the following years, San Mateo Park continued to develop with houses built in the popular revival styles as well emerging styles such as the Bay Tradition, like the house at 626 Occidental Avenue (extant), designed by notable architect Julia 154 Postel, San Mateo: A Centennial History, 126.
155 Postel, San Mateo: A Centennial History, 45.
156 “County Law Makers,” Redwood City Standard, June 5, 1902, at https://www.newspapers.com/imageview/999934451/?match=1&terms=%22county%20law%20makers%22 157 1910 United States Census, San Mateo, San Mateo County, digital image s.v. “Davenport Bromfield,” Ancestry.com, at https://www.ancestry.com/search/collections/7884/records/1766328?tid=&pid=&queryId=34e7576d-f186-42c3-877bfc436f074db8&_phsrc=vRp61&_phstart=successSource 436 of 1110
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Morgan in 1924 and at 425 Edgewood Drive (extant), designed by architect Herbert Goodpastor (Figure 28 and Figure 29).158
Figure 27 Bromfield Family at San Mateo Park House on Occidental Avenue, 1914; Davenport Bromfield, far right.

Source: SonyMann – Ancestry.com
158 Pacific Coast Architect, Vol 25 No. 1, 1924, 18, at https://www.usmodernist.org/PCA/PCA-25-26.pdf ; California Arts & Architecture, December 1934, 34, at https://www.usmodernist.org/AA/CAA-1934-12.pdf 437 of 1110
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56 Figure 28 1924 Advertisement for House in San Mateo Park Source: Pacific Coast Architect, Vol 25 No. 1, 1924
Figure 29 1934 Advertisement for House in San Mateo Park Source: California Arts and Architecture, December 1934 438 of 1110
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Alvinza Hayward died in 1904 and his estate was subsequently interested in selling his vast property.

Baldwin and Howell were agents for the residential sales and for the sale of the former mansion to be transformed into the Peninsula Hotel. The Hayward Park subdivision was laid out in square blocks from the railroad tracks to El Camino between 9th and 16th Avenues.159 The Peninsula Hotel (non-extant), at the corner of 9th Avenue and Palm Avenue, was promoted as the social center of the neighborhood. Early advertisements for the subdivision extolled the speed that building a house on the lots would be with easy connections to sewer, gas, and electricity services (Figure 30).160 First constructed outside the city’s boundaries, San Mateo Park and Hayward Park were annexed in 1909 and 1910, respectively (Figure 31).161 The early development of Hayward Park included many California bungalows, a popular housing type of the time. In the following years, the community continued to develop with more examples of period revival style houses in more modest proportions than in San Mateo Heights and San Mateo Park.162 An available historical aerial image from 1929 shows that the southern portion of the neighborhood was substantially developed by this time, with few remaining undeveloped lots (Figure 32).163 Figure 30 1907 Advertisement for Hayward Park Subdivision Source: Advertisement. The Bulletin, September 21, 1907. 159 Postel, San Mateo: A Centennial History, 127.
160 Advertisement, “Hayward Park,” San Francisco Call Bulletin, September 28, 1907, at https://www.newspapers.com/imageview/994896969/?match=1&terms=hayward%20park 161 Postel, San Mateo: A Centennial History, 146.
162 City of San Mateo, City of San Mateo Historic Building Survey Final Report, 31. 163 University of California, Santa Barbara, San Mateo [aerial photograph], Flight C-674, Frame 2, October 1, 1929. 439 of 1110
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58 Figure 31 1912 Map of San Mateo’s Subdivisions
Source: San Mateo County Historical Association
Figure 32 1929 Aerial of Hayward Park
Source: University of California, Santa Barbara; Annotation by Rincon Consultants, Inc.

Image Redacted Pending Permission for Use
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The Peninsula Hotel burned in a fire in June 1920.164 The land was subsequently sold by Baldwin and Howell and subdivided for additional residential development, becoming the Glazenwood neighborhood within Hayward Park. Unlike the typical grid subdivision and rectangular lot development in Hayward Park, Glazenwood was subdivided with a U-shaped design with two curving streets, Laurel Avenue and Rosewood Drive, creating a horseshoe entry into the neighborhood from 9th Avenue. Its design was apparently derived from the country lanes of England. Founded by Herbert Jones and Walter A. Nelson, the community was planned for Spanish Colonial revival houses, somewhat larger than those in Hayward Park. The neighborhood was developed between 1922 and 1925.165 A. Born Building Company constructed the houses, many speculatively, besides those built for Jones and Nelson.166 After several successful sales, Born purchased the remaining undeveloped lots from Baldwin and Howell to continue to develop and sell directly.167
The community was planned as a restricted residential tract. S. Born described that “there is no other tract on the peninsula which is protected to the same extent with restrictions that Glazenwood is.”168 The neighborhood’s status as a restricted residential tract was a selling point, and meant to signal a planned, exclusive, and economically harmonious neighborhood. Such neighborhoods often included racial covenants that explicitly excluded people from racial and religious groups by deed restriction. According to available census records, the early residents were from the professional class and included investment bankers, lawyers, salesmen, lawyers, and engineers and many households included live-in service staff.169 Residential growth continued throughout the 1920s. San Mateo approved three annexation measures in the late 1920s. In January 1927, the city annexed an area west of El Camino and south of Hobart Avenue known as San Mateo City Homestead.170 The 345-acre subdivision was first surveyed and approved in 1870.171 Its early development, however, appears to have been slow and supported some small farms. By 1898, many lots remained undeveloped with unused streets.172 Development appears to have increased in the first decades of the twentieth century, likely attributed, in part, to the influx of residents following the 1906 Earthquake. Nonetheless, by 1920, development in the San Mateo City Homestead area was less dense than those subdivisions closer to the center of the city. A 1920 Sanborn map depicts limited residential development on lots closest to El Camino Real, along present-day Hobart Avenue (formerly 1st Avenue), Madison Avenue (formerly Middle Avenue), Barneson Avenue (formerly 2nd Avenue) as well as along Maple Street and Nadina Street (former Nut Avenue), while the lots to the south of Barneson Avenue were 164 “Peninsula Hotel Burns Down When Water Fails,” San Francisco Examiner, June 26, 1920, at https://www.newspapers.com/image/457919047/?match=1&terms=%22peninsula%20hotel%20burns%20down%22. 165 City of San Mateo, City of San Mateo Historic Building Survey Final Report, 32. 166 “Suburban Tract Building Active,” San Francisco Chronicle, January 28, 1922, at https://www.newspapers.com/image/1235198032/?match=1&terms=%22suburban%20tract%20building%20active%22. 167 “Glazenwood to Have Many New Modern Homes,” The Bulletin, August 4, 1923, at https://www.newspapers.com/image/996126290/?match=1&terms=Glazenwood%20to%20Have%20Many%20New%20Modern%20Hom es.
168 “Suburban Tract Building Active,” San Francisco Chronicle, January 28, 1922, at https://www.newspapers.com/image/1235198032/?match=1&terms=%22suburban%20tract%20building%20active%22. 169 United States Census Bureau, Fifteenth Census of the United States: 1930, California, San Mateo Precinct 24/25. 170 City of San Mateo, “History of San Mateo Ballot Measures 1921-1930,” accessed October 9, 2025, at https://www.cityofsanmateo.org/DocumentCenter/View/92532/History-of-San-Mateo-Ballot-Measures-1921-1930. 171 San Mateo City Homestead Association, Surveyed by George H. Goddard, January 1870, Barry Lawrence Ruderman Map Collection, at san mateo / Place created: San Francisco - Barry Lawrence Ruderman Map Collection - Spotlight Exhibits Search Results. 172 “Board of Supervisors,” Redwood City Standard, December 22, 1898, at https://www.newspapers.com/image/999956693/?match=1&terms=homestead. 441 of 1110
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60 undeveloped.173 Though infill development occurred in the following years, the southern lots remained undeveloped up to 1929, according to available historic aerials (Figure 33).174 Figure 33 1920 Sanborn (left) and 1929 aerial (right) of San Mateo City Homestead Development
In April 1927, the City voted to annex the former Parrott Estate located at the northwest corner of the city and bounded by the town of Hillsborough to the north. 175 The estate passed to John
Parrott’s widow, Abby Parrott after his death in 1884. She continued living on the estate until her death in 1917.176 Due to the vast amount of land owned by the Parrott family throughout San Francisco and the Peninsula, the heirs established the Parrott Estate Company.177 In 1927, the former Parrott Estate was subdivided by the Dunn-Williams Company. The Baywood Park Company was created the same year to sell the lots. Similar to the San Mateo Park subdivision, streets were designed following the natural topography and landscape. J.A. Williams of the Baywood Park Company described that, “we have instructed our engineers in planning streets to avoid sacrificing trees,” he continued, “with this thought in mind, they have worked out a magnificent plan, particularly for Baywood Drive. This broad artery, which will have no equal anywhere, will in reality be a triple avenue. The center section, which will be lined on both sides by magnificent oaks, eucalyptus and other fine trees, will be about 20 feet wide.”178 By late 1927, roads were constructed 173 Sanborn Map Company, Sanborn Fire Insurance Map from San Mateo, San Mateo County, California, 1920. 174 University of California, Santa Barbara, San Mateo [aerial photograph], Flight C-674, Frame 1, October 1, 1929. 175 City of San Mateo, “History of San Mateo Ballot Measures 1921-1930,” accessed October 9, 2025, at https://www.cityofsanmateo.org/DocumentCenter/View/92532/History-of-San-Mateo-Ballot-Measures-1921-1930. 176 “Abby Parrott’s Estate Exceeds Five Millions,” San Francisco Chronicle, October 18, 1917, https://www.newspapers.com/image/1235165103/?match=1&terms=Abby%20Parrott%E2%80%99s%20Estate%20Exceeds%20Five%20 Millions.
177 “Parrott Estate Distribution in Part is Sought,” Redwood City Tribune, January 27, 1925, https://www.newspapers.com/image/841853146/?match=1&terms=Parrott%20Estate%20Distribution%20in%20Part%20is%20Sought. 178 Seymour H. Pierson, “San Mateo Home Site Near Ready,” San Francisco Bulletin, March 26, 1927, https://www.newspapers.com/image/996434983/?match=1&terms=San%20Mateo%20Home%20Site%20Near%20Ready. 442 of 1110
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and a dozen houses had been built, many along Cornell Avenue.179 Similar to Glazenwood, Baywood Park Company established the neighborhood as restricted, though appear to have been less explicit about the restrictions in advertising the blossoming community (Figure 34).

Figure 34 1929 Advertisement for Baywood Neighborhood
Source: San Francsico Bulletin, June 28, 1929
Over the next several years, the neighborhood continued constructing single-family houses built in the popular revival styles of the period. In 1930, the San Francsico Chronicle sponsored a model home in the neighborhood. Built especially for display purposes, “The Californian,” was designed by the architecture firm Grimes and Schoening in the Monterey Colonial Revival style at 639 Fordham Road (extant) and staged with furniture and appliances from O’Connor, Moffatt, a luxury department store. The open house attracted over 30,000 visitors and served as a boost to draw more residents to the neighborhood, marketed as a charming neighborhood at a moderate cost.180 Though Baywood initially only included single-family houses by design, in 1929 builder Irma B.

Downing oversaw the construction of the Casa Baywood Apartments (extant) at the corner of El Camino Real at the entrance to the neighborhood.181 Designed by local architect Ernest L. Norberg, he also designed another apartment building, Del Cerrito at 212 Eaton Road (extant) for owner Gordon C. Hess.182 Other apartment buildings from this period included Sequoia at 146 West 3rd Avenue and Casa Hermosa Apartments at 106 West 3rd Avenue (extant) (Figure 35). These larger suburban-style apartment buildings were built in the same popular revival styles of the period. As a building type, they were becoming more popular during this period, though multifamily housing existed in downtown San Mateo by the early twentieth century. These examples, however, differed 179 “Sales at Baywood Park Have Passed Million Dollar Mark,” The San Francisco Examiner, September 24, 1927, https://www.newspapers.com/image/457932529/?match=1&terms=Sales%20at%20Baywood%20Park%20Have%20Passed%20Million%2 0Dollar%20Mark.
180 “Visitors Will Have Final Opportunity to See Model Home This Week,” San Francisco Chronicle, May 24, 1930, https://www.newspapers.com/image/1237358000/?match=1&terms=%22san%20mateo%22. 181 “Casa Baywood to be Ready Mar. 20,” San Francisco Chronicle, March 2, 1929, https://www.newspapers.com/image/1237302385/?match=1&terms=Casa%20Baywood%20to%20be%20Ready%20Mar.%2020%2C%E2 %80%9D%20.
182 “Del Cerrito, Latest Word in Apartments, Opens Today,” San Francisco Chronicle, May 10, 1930, https://www.newspapers.com/image/1237350449/?match=1&terms=Del%20Cerrito%2C%20Latest%20Word%20in%20Apartments%2C% 20Opens%20Today.
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62 because they often had street level retail similar to urban areas, like Jefferson Court Apartments at 138 South B Street (extant).183
Figure 35 1931 View of Third Avenue and El Camino Real
Source: San Mateo County Historical Association
San Mateo’s physical expansion continued in 1929, when the city annexed the area formally known as the Beresford District. The Beresford District was subdivided outside the city in 1884 and included the area south of 15th Avenue.184 A 1910 survey map of the county illustrates Beresford Park located on the west side of El Camino Real and subdivided into 21 large lots.185 A 1927 map of San Mateo County depicts further subdivision spanning from approximately present-day 20th to 31st avenues. It was bound by the Beresford Country Club (the present-day location of the Peninsula Golf and Country Club) to the west, while the area between the Baywood neighborhood to the north and Beresford Park still included several large unsubdivided tracts of land.186 Additionally, a portion of Beresford east of El Camino, known as the Town as Beresford, bound by McLellan Avenue to the north and Poinsettia Avenue to the south, that was served by its own rail station. The maps indicate Beresford Park and Beresford Town were sparsely populated with 200 residents. 187 The annexation two years later added 600-700 new residents to San Mateo and increased the size of the city by 183 “Instruments on File,” Redwood City Tribune, November 15, 1923.; Sanborn Map Company, Sanborn Fire Insurance Map from San Mateo, San Mateo County, California, 1920.
184 “Fire Protection Needed,” San Mateo Times, March 27, 1931; Postel, San Mateo: A Centennial History, 98. 185 Map of the County of San Mateo California, Surveyed by Davenport Bromfield, 1910, Barry Lawrence Ruderman Map Collection. Map of the County of San Mateo California Compiled From The County Records By Davenport Bromfield, Civil Engineer Ex-County Surveyor 1910 - Barry Lawrence Ruderman Map Collection - Spotlight Exhibits. 186 George A. Kneese, Official Map of San Mateo County 1927, 1927, David Rumsey Map Collection, https://www.davidrumsey.com/luna/servlet/detail/RUMSEY~8~1~330400~90098928:Official-Map-of-San-Mateo-County-Ca. 187 Sanborn Map Company, Sanborn Fire Insurance Map from Beresford, San Mateo County, California, 1927.

Image Redacted Pending Permission for Use
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approximately one-third.188 In the following years, the community continued to grow as residential development increased (Figure 36).

Figure 36 1939 View of Beresford Area, Facing East toward Bay Meadows Source: San Mateo Public Library, San Mateo Local History Collection In 1929 work began on the Aragon Tract, a 10-block subdivision south of Baywood and north of the San Mateo Homestead Tract. The Aragon Tract is located on approximately 100 acres of land from the former Tobin Clark Estate (extant in neighboring Hillsborough).189 Developed by Meyer Brothers, houses were open for display beginning in summer 1929.190 Display houses were assigned names like “the Cordova,” “the Kenmore,” and “the York” and reflected their architectural stylings— Spanish Colonial Revival in the Cordova and Tudor Revival in the Kenmore and the York.191 Development continued in 1933 when Meyers Brothers transferred approximately 82 acres of the tract to the Aragon Company, a syndicate of prominent San Mateo residents that included W.S.

Leadley, Louis Lengfeld, F.W. Loewe, Emil Zwierlan, and Fred P. Calleson.192 Advertisements for the second phase of development for the Aragon Tract depicted curving roads and Revival style houses, describing the neighborhood as “the Peninsula’s choiciest homesites.”193 Sales continued for the next several years. Unlike Meyers Brothers, the Aragon Company was not a developer/builder, and houses were built by a number of different local construction companies and included more 188 “Beresford Votes Union to San Mateo by Big Majority,” San Mateo Times, August 28, 1929, https://www.newspapers.com/image/51674915/?match=1&terms=Beresford%20Votes%20Union%20to%20San%20Mateo%20by%20Big %20Majority.
189 “New Aragon Tract Starts Paving Today,” San Mateo Times, June 19, 1929, https://www.newspapers.com/image/51671120/?match=1&terms=New%20Aragon%20Tract%20Starts%20Paving%20Today. 190 “Aragon Tract Will Open to Public Sunday,” San Mateo Times, August 24, 1929, https://www.newspapers.com/imageview/51674797/?match=1&terms=Aragon%20Tract%20Will%20Open%20to%20Public%20Sunday%2C%E2%80%9D%20. 191 “Many Visitors See Homes in Aragon Tract,” San Mateo Times, September 21, 1929, https://www.newspapers.com/image/51676370/?match=1&terms=Many%20Visitors%20See%20Homes%20in%20Aragon%20Tract. 192 “Work on New Aragon Tract Starts Today,” San Mateo Times, August 9, 1933, https://www.newspapers.com/image/38861688/?match=1&terms=Work%20on%20New%20Aragon%20Tract%20Starts%20Today%2C%E 2%80%9D%20.
193 Advertisement for Aragon Tract, San Mateo Times, September 9, 1933, https://www.newspapers.com/image/38862312/?match=1&terms=aragon%20tract. 445 of 1110
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64 examples of emerging architectural styles like Streamline Moderne (Figure 37). The model house was built by G.W. Williams Company, who constructed several other houses in the tract. Other houses were built by local builders like Leadley and Wiseman, Roy Allen, and Wallace Waterhouse.194
Figure 37 1937 Image of Aragon Tract House
Source: Fang Family San Francisco Examiner Photograph Archive © The Regents of the University of California, The Bancroft Library, University of California, Berkeley
The new and annexed subdivisions helped the city’s overall population grow from 5,979 residents in 1920 to 13,444 in 1930, a nearly 125 percent increase.195 The city continued growing over the next decade due to subdivision development.

In 1938, the Sunnybrae subdivision was approved and construction began shortly thereafter.196 Located south of 10th Avenue from South Delaware Street to Bayshore Highway, the tract was built by the G.W. Williams Company and developed by American Homes, Inc. The neighborhood, as envisioned, included 700 houses and community amenities like parks, schools, and shopping centers and was planned with the help of the Federal Housing Administration (FHA).197 Unlike the strict grid 194 “Aragon Enjoys Active Month,” San Mateo Times, September 14, 1935, https://www.newspapers.com/image/51681539/?match=1&terms=Aragon%20Enjoys%20Active%20Month. 195 “San Mateo, Decennial Census Data,” Bay Area Census, accessed October 9, 2025, at https://census.bayareametro.gov/historicaldata/1860-1940/san_mateo. 196 “School Bond Bid Rejected,” Redwood City Tribune, September 21, 1938, https://www.newspapers.com/image/841854346/?match=1&terms=School%20Bond%20Bid%20Rejected. 197 “In Sunnybrae Small Homes New Attraction,” San Francisco Chronicle, June 3, 1939, https://www.newspapers.com/image/1237702704/?match=1&terms=In%20Sunnybrae%20Small%20Homes%20New%20Attraction. 446 of 1110
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in the city’s first residential neighborhoods and the curving roads of the subdivisions carved from the former estates, Sunnybrae was laid out with long blocks and weaving streets designed to slow traffic and minimize accidents, and appears to have adopted many of the principles established by the FHA by this period as published in their guidance Planning Neighborhoods for Small Houses. The neighborhood included other features typical of FHA-encouraged designs like use of the “suburban curb,” a curved curb that continued to the gutter and did not require new curb cuts for driveways for each house built. The neighborhood’s main artery, Sunnybrae Boulevard, continues diagonally through the neighborhood providing convenient access to principal centers, as also recommended by FHA guidance.198 The first houses were designed by architect John Knox Ballentine, Jr. The first phase of building included 11 houses; five were wood frame and six were “Unibilt” steel frame houses. All the houses were designed to meet the demand for modern, low-cost housing and unlike earlier development in this period were not revival style, but were built in California ranch and minimal traditional styles (Figure 38). 199
Figure 38 Sketch of Sunnybrae House
Source: “The Golden Gate Exposition Model Homes,” Pencil Points, May 1939.

Toward the end of this period, residential development of formerly semi-rural land began. Laurel Creek Farm, located south of Beresford Park at the city’s southern limit at present-day 31st to 42nd Avenues, was first subdivided in 1889. By 1927, it had been further subdivided, but remained sparsely developed.200 Further subdivision and development began in spring 1940, beginning on Arbor and Briar Lanes as part of David D. Bohannon’s Hillsdale development, however it remained largely undeveloped by the early 1940s.
201
After starting his firm in 1928, and surviving the stock market crash in 1929, David D. Bohannon of the David D. Bohannon Organization, purchased the St. Cyr Estate, formerly the Howard property.

He built the El Cerrito Manor development, a 10-acre portion of the former St. Cyr estate. His work in San Mateo continued in 1937, when he purchased 848 acres of the Beresford area. The development of the first 241 acres of what is now known as Hillsdale was completed in April 1940. 198 Federal Housing Administration, Technical Bulletin No. 5: Planning Neighborhoods for Small Houses, (Federal Housing Administration, 1936), 12.
199 “Tree Planting Starts in Sunnybrae Tract,” San Mateo Times, March 18, 1939, https://www.newspapers.com/image/38660966/?match=1&terms=Tree%20Planting%20Starts%20in%20Sunnybrae%20Tract. ; “About Sunnybrae,” G.W. Williams Co., accessed October 14, 2025, https://www.gwwilliams.com/timeline-history/sunnybrae/. 200 George A. Kneese, Official Map of San Mateo County 1927, 1927, David Rumsey Map Collection, https://www.davidrumsey.com/luna/servlet/detail/RUMSEY~8~1~330400~90098928:Official-Map-of-San-Mateo-County-Ca. 201 “Legal Notice,” San Mateo Times, May 23, 1940,
https://www.newspapers.com/image/38860990/?match=1&terms=%22legal%20notice%22. 447 of 1110
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66 Unlike El Cerrito Manor, which largely resembled the city’s other suburban development, Hillsdale called for the construction of 5,000 inexpensive, well-built houses that came to represent postWorld War II housing. 202

8.2 Commercial Development
Commercial development following San Mateo’s incorporation was characterized by rapid expansion and growth to respond to San Mateo’s increasing population. Sanborn insurance maps show that by 1897 wood-frame commercial buildings typical of the previous period were replaced by more permanent brick and stone frame buildings along San Mateo’s commercial corridor, particularly along B Street and Railroad Avenue.203 The city’s commercial district experienced significant damage from the 1906 earthquake, which was a contributing factor to the commercial core’s rebuilding and subsequent expansion (Figure 39). In the following decades, commercial businesses extended along B Street from Baldwin to Fourth Avenue and radiated to side streets.

Second Avenue opened through the former Taylor property and connected to El Camino Real, where a number of important commercial businesses were also located. In addition to the connection to El Camino Real, a bridge was built across San Mateo Creek, connecting San Mateo Drive and Second Avenue.204
Figure 39 Damage to San Mateo Stable Building at 1st Avenue and B Street, 1906 Source: San Mateo Public Library, San Mateo Local History Collection Many of San Mateo’s first hallmark businesses were founded during this period. In 1894, San Mateo’s first bank was organized by Philip Roedel along with San Mateo’s existing business leaders.

In 1896, the Bank of San Mateo building was erected on Main Street. The same year, he helped establish the San Mateo Mutual Building and Loan Association Roedel built a grand Tudor Revival 202 Postel, San Mateo: A Centennial History, 211.
203 Sanborn Map Company, Sanborn Fire Insurance Map from San Mateo, San Mateo County, California, 1897. 204 Frank Stanger, Levy Bros: A Centennial History, 1872-1972, (Stanger, 1972), 22. 448 of 1110
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house, called Seven Oaks at 20 El Cerrito Avenue (extant) in 1905. After his death in 1905, both the bank and house were purchased by A.P. Giannini. 205
Giannini retained the bank’s name and officers, which included Robert Wisnom as Vice President.

The bank’s location was moved to the corner of B and Third streets by 1905 and was renamed the National Bank of San Mateo in 1909. In 1918, Giannini changed the name of the bank at 3rd and B streets to Bank of Italy (present-day Bank of America). The original bank building was demolished in the 1930s. In 1923, the Bank of San Mateo’s original directors spilt from Giannini and revived the Bank of San Mateo name with a new building at 164 South B Street (extant). Designed by architect William Henry Weeks (1866–1936), the Beaux Arts building, was a monumental addition to downtown San Mateo.206
During this period, the Levy brothers established a store in San Mateo, Levy Bros. The brothers arrived from France in 1869 and first established stores on the San Mateo coast side and purchased the stage line to San Mateo before establishing a store in downtown San Mateo in 1898. The brothers—Joseph, Fernand, Adrien, and Armand—operated from the Wisnom Block on B Street, occupying most of the buildings by 1906 (Figure 40).207 The store catered to all of the community’s needs and included four connected stores—hardware, grocery, dry goods, and men’s furnishings. In addition to the store, they also offered door-to-door sales and delivery from San Bruno to Belmont.

By 1917, Levy Bros were looking to expand in San Mateo and with the opening of the former Parrott estate lands for development, arranged to build a new building at Ellsworth and Second Avenues.

Despite difficulty during the Great Depression, the business survived.

During this period, San Mateo’s business district began to shift away from Railroad Avenue and B Street toward El Camino Real. In 1923, Chistian de Guigne’s heirs agreed to sell their property, which occupied most of the land between Ellsworth and El Camino on the south side of Third Avenue. The sale of the property, organized by D.A. Raybould, helped him realize his vision to connect El Camino Real with the railroad, via a wide commercial thoroughfare. In 1924, Third Avenue was developed to be 80 feet wide, allowing for diagonal parking and becoming the widest business district in the Peninsula.208 Lots began to be developed on the south side of Third Avenue, beginning with the Caldwell building at 149 Third Avenue (non-extant) and continuing in the following years with Noah’s Ark restaurant (non-extant), the San Mateo Theater (1925, extant, but altered), and Benjamin Franklin Hotel (1927, extant). In an effort to improve business, Levy Bros decided to move to the new commercial core. In 1931, the moved into a new store, designed by the San Franciso firm Hyman and Appleton with a 150-foot frontage, on the north side of Third Avenue (extant) (Figure 41).
209 The gamble to build a new store in the midst of the Great Depression did not immediately help the business, but they were able to survive in San Mateo for many more decades. 205 Postel, San Mateo: A Centennial History, 102.
206 Patrick McGrew, “Bank of San Mateo, San Mateo County, California” National Register of Historic Places Nomination Form (Washington, D.C: US Department of the Interior, National Park Service, 1997). 207 Stanger, Levy Bros: A Centennial History, 1872-1972, 16. 208 Postel, San Mateo: A Centennial History, 170.
209 Stanger, Levy Bros: A Centennial History, 1872-1972, 31. 449 of 1110
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68 Figure 40 Levy Bros Store at Wisnom Block c. 1905
Source: San Mateo Library
Figure 41 Levy Bros Third Avenue Building under Construction, 1931 Source: San Mateo Public Library, San Mateo Local History Collection 450 of 1110
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The introduction and popularity of automobile travel during the early twentieth century influenced San Mateo’s commercial growth. In addition to the city’s commercial expansion shifting toward El Camino Real, it began to take the form of an auto-oriented commercial corridor as the early decades of the twentieth century passed. Buildings related to servicing and repair of automobiles began appearing along major roadways and downtown streets. By 1920, garages and machine shops were built in the vicinity of 4th and B streets, along with the California Garage at 146 2nd Avenue (nonextant), and at least two additional garages just beyond the incorporated city in nearby Homestead, including the former Homestead Garage at 10 Madison Avenue (extant, but altered). 210
Gas stations, too, appeared by 1920, and were increasingly common by the end of this period.

Between 1920 and 1950, four gas stations were developed fronting El Camino Real, between East 3rd and East 4th avenues, framing one gateway into the downtown.211 One such gas station was a Spanish Colonial Revival service station at the corner of Palm Avenue and South Bend Boulevard (extant, 1641 Palm Avenue).

The city’s most popular commercial businesses, Wisnom’s Hardware and Levy Bros were also early adopters of the automobile business. Edmond Levy, son of Fernand Levy, traveled to Detroit by train in 1916 and drove cross-country back to San Mateo to prove the durability of new Buicks. Levy Bros then purchased the first rail shipment of Buicks and were agents until 1927.212 The Wisnom family, also a multigenerational San Mateo business, continued Robert Wisnom’s legacy in 1905 when Robert J., his brother William, and Robert Bonner opened Wisnom-Bonner Hardware at 2nd and Ellsworth Avenues (201 Second Avenue, extant).
213 The Wisnom-Bonner Hadware store was a Dodge
dealership, and also provided service for Dodge automobiles (Figure 42).