Agenda — Scotts Valley City Council, March 16, 2022

A G E N D A
Meeting of the
Scotts Valley City Council

REMOTE ACCESS ONLY
Date: March 16, 2022
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA
95066
(831) 440-5600
Zoom Videoconference
https://us02web.zoom.us/j/86217048196
See information below for how to
participate.

The agenda was posted
3-11-2022 at City Hall and
on the Internet at
www.scottsvalley.org.

PUBLIC ADVISORY REGARDING COVID-19 AND PUBLIC PARTICIPATION On September 16, 2021, Governor Newsom signed Assembly Bill 361 (“AB 361”), an urgency measure effective upon adoption, amending the Brown Act to allow legislative bodies to continue teleconferencing during a proclaimed State of Emergency, and either state or local officials have imposed or recommended measures to promote social distancing, or the legislative body determines that meeting in person would present imminent risks to the health or safety of attendees. In accordance with AB 361, the Scotts Valley City Council adopted Resolution No. 2007.5 on March 2, 2022 authorizing the continued use of teleconferenced meetings pursuant to AB 361. Elected Officials and City Staff Members will be participating remotely via videoconference.

Public Participation:

The meeting will be available on Zoom and broadcast through Community Television of Santa Cruz on Channel 25 and via their website at the following link: https://communitytv.org/watch/ (be sure to click on Channel 25). For those wishing to participate via Zoom you can join the following ways:
• Join from a PC, Mac, iPad, iPhone or Android device:

Please click this URL to join. https://us02web.zoom.us/j/86217048196 • Or iPhone one-tap:
+16699009128,,88999122100# US (San Jose)
+12532158782,,88999122100# US (Tacoma)
• Or join by phone:

Dial (for higher quality, dial a number based on your current location):

US: +1 669 900 9128 or +1 253 215 8782 or +1 346 248 7799 or +1 646 558 8656 or +1 301 715 8592 or +1 312 626 6799
Webinar ID: 862 1704 8196
City Council Meeting Agenda Page 2
Date: March 16, 2022
You will be given opportunities to provide public comment at the appropriate times throughout the meeting via Zoom. If you are participating via dial-up only, use *9 to raise your hand at the requested time.

How to comment via Zoom:

1. At the appropriate times during the meeting for public comment, on items not on the agenda, and on specific agenda items, the Mayor will announce that public comment will be accepted. Our usual time limits of 3 minutes per individual, or 5 minutes for an individual who is representing a group of three or more, will apply. Please note that per our standard practice,this is not a question and answer time, but simply a time for you to provide your comments to the Council.

2. There is an option on Zoom to raise your hand. Please click on this option when the Mayor announces that public comment will be taken. Zoom places people in line automatically. If you are participating via dial-up, you can raise your hand at the appropriate time by pressing *9. When it is your turn, the City Clerk will unmute you, and you will be able to make your comments based on the above time frames. Once your time is up, you will once again be muted and the next person in line will be given their opportunity to speak.

How to comment via email:

1. Members of the public may provide public comment by sending comments to the City Clerk via email at [email protected].

2. Additional materials and emails must be received by 5:30 pm the day of the meeting and will be distributed to agenda recipients prior to the meeting.

3. Emails received after 5:30 pm the day of the meeting will not be included in the record.

ELECTED OFFICIALS CITY STAFF MEMBERS
Donna Lind, Mayor
Jim Reed, Vice Mayor
Jack Dilles, Council Member
Randy Johnson, Council Member
Derek Timm, Council Member
Mali LaGoe, City Manager
Casey Estorga, Administrative Services Director
Kirsten Powell, City Attorney
Steve Walpole, Chief of Police
Taylor Bateman, Community Development Director
Chris Lamm, Public Works Director
Lauren Lambert, Deputy City Clerk

MEETING NOTICE AND AGENDA PACKET MATERIALS
Notice regarding City Council Meetings:

The City Council meets regularly on the 1st and 3rd Wednesday of each month at 6:00 pm.

Agenda and Agenda Packet Materials:

The City Council agenda and the complete agenda packet are available for review by 5:00 pm the Friday before the Wednesday meeting on the Internet at the City’s website:
http://scottsvalley.org/AgendaCenter. Due to COVID-19, City Hall is closed to the public therefore, the agenda is only available for viewing online.

Televised Meetings:

City Council meetings are cablecast “Live” on Community Television of Santa Cruz County on Comcast Channel 25 and are also available livestream on the Community TV website at the following link: https://communitytv.org/watch/
City Council Meeting Agenda Page 3
Date: March 16, 2022
Zoom Meetings/Webinars:

For those wishing to participate via Zoom you can join from a PC, Mac, iPad, iPhone or Android device by entering or clicking on the following URL:
https://us02web.zoom.us/j/86217048196
CALL TO ORDER 6:00 PM

MOMENT OF SILENCE

ROLL CALL

SPECIAL SET MATTER(S)
a) Presentation of Mayor’s Proclamation recognizing Bleeding Disorders Awareness Month – March 2022
b) Presentation of Mayor’s Proclamation recognizing March 15, 2022 as Equal Pay Day

COMMITTEE REPORTS
Council members are appointed to committees which are either City committees or committees dealing with other jurisdictions. This portion of the agenda allows the committee member to present oral or written reports to the Council regarding their committee assignments. It also allows the Council to make comments and give the committee member direction, as required.

CITY MANAGER REPORT

PUBLIC COMMENT TIME
This is the opportunity for individuals to make and/or submit written or oral comments to the Council on any items within the purview of the Council, which are NOT part of the Agenda.

No action on the item may be taken, but the Council may request the matter be placed on a future agenda.

ALTERATIONS TO CONSENT AGENDA
Council can remove or add items to the Consent Agenda.

CONSENT AGENDA
The Consent Agenda is comprised of items which appear to be non-controversial. Persons wishing to speak on any items may do so raising their hand to be recognized by the Mayor.

A. Approve City Council minutes of 3-02-2022
B. Approve check registers dated 3-04-2022 and 3-11-2022 City Council Meeting Agenda Page 4
Date: March 16, 2022
C. Approve Resolution No. 2007.6 authorizing the continued use of teleconferenced meetings pursuant to Assembly Bill 361
D. Approve second reading and adoption of Ordinance No. 110.7 Amending Sections 10.08.020 and 10.18.020 of Title 10 of The Scotts Valley Municipal Code (SVMC) adding private streets subject to vehicle code enforcement

ALTERATIONS TO REGULAR AGENDA
Council can remove or add items to the Regular Agenda.

REGULAR AGENDA
Persons wishing to speak on any item may do so by raising their hand to be recognized by the Mayor.

1. Consider approval of the Scotts Valley Unified School District Mutual Cooperation Agreement for before and after school childcare (Public Works Director Chris Lamm)

2. Receive Fiscal Year 2020-2021 Annual Comprehensive Financial Report (ACFR) and receive Fiscal Year 2021-2022 Mid-Year Financial Report, including Proposed Budget Amendments. Consider Approval of Resolution No. 630.41.1 amending the FY 2021-22 Annual Budget (Administrative Services Director Casey Estorga)

3. Consider approval of the Housing Element 2021 Annual Progress Report and authorize the submittal of the Annual Progress Report to the Department of Housing and Community Development and State Office of Planning and Research (Contract Planner Jonathan Kwan)

4. Future Council agenda items
(This portion of the Regular Agenda allows the Council to determine items to be placed on a future agenda and to choose a date, if so desired.)

ADJOURNMENT

ADA NOTICE
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440- 5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

City Council Meeting Agenda Page 5
Date: March 16, 2022

PROCEDURAL INFORMATION FOR THE PUBLIC

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
APPROVAL OF A RESOLUTION:

1. Move the Resolution number for approval.

2. Second the motion.

3. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
INTRODUCTION/ADOPTION OF AN ORDINANCE:

1. Move the Ordinance number for introduction (or adoption).

2. Move the Ordinance be introduced by title only and waive the reading of the text.

3. Read the Ordinance title.

4. Second the motion.

5. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
PUBLIC COMMENT/PUBLIC HEARINGS:

Unless otherwise determined by the presiding officer of the meeting:

1. Three minutes allowed per individual to speak.

2. Five minutes allowed per individual representing a group of three or more. ❖❖❖❖❖❖❖❖
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; Voice to TTY/VCO/HCO: English 1- 800-735-2922, Spanish 1-800-855-3000; or, from or to Speech-to-Speech, English & Spanish 1- 800-854-7787), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

Signed and sealed this 16th day of March 2022
Donna Lind, Mayor
WHEREAS, Bleeding Disorders Awareness Month has been observed each March since 2016, after being designated as a national health observance by the U.S. Department of Health and Human Services. Prior to Bleeding Disorders Awareness Month, March was known as “Hemophilia Awareness Month”—a designation confirmed by President Ronald Reagan in March 1986; and
WHEREAS, Bleeding Disorders Awareness Month aims to increase awareness of inheritable blood and bleeding disorders among the public, as well as bring them to the attention of policymakers, public authorities, industry representatives, scientists, and health professionals; and
WHEREAS, These bleeding disorders, which share the inability to form a proper blood clot, are characterized by extending bleeding after injury, surgery, trauma or menstruation and can lead to significant morbidity and can be fatal if not treated effectively; and WHEREAS, This Awareness Month will generate greater awareness and understanding of not only hemophilia but all inheritable bleeding disorders, including Von Willebrand Disease, Platelet Storage Pool Disorder and Glanzmann’s Thrombasthenia—which alone impacts an estimated one percent of the U.S. population or more than 3.2 million individuals, an estimated 1,224 (based on the 2020 population) individuals in Scotts Valley; and
WHEREAS, This Awareness Month will elevate awareness of diagnosis and treatment of and engagement in the ineritable bleeding disorders journey beyond our community to the general public, enabling the prevention of illness, unnecessary procedures, and disability.

NOW, THEREFORE, I, Donna Lind, Mayor of Scotts Valley, do hereby proclaim March 2022 as Bleeding Disorders Awareness Month in the City of Scotts Valley, in order to foster a greater sense of community and shared purpose among individuals with all inheritable bleeding disorders.

City of Scotts Valley
Mayor’s Proclamation
001

SPECIAL SET MATTER A
DATE: 03-16-2022
Signed and sealed this 16th day of March 2022
Donna Lind, Mayor
WHEREAS, Fifty-nine years after the passage of the Equal Pay Act, women, especially minority women, continue to suffer the consequences of unequal pay; and WHEREAS, According to the U.S. Census Bureau, women working full time, year-round in 2020 in the United States typically earned 83% of what men earned, indicating insufficient progress in pay equity; and
WHEREAS, According to Graduating to a Pay Gap, a research report by the American Association of University Women (AAUW), the gender pay gap is evident one year after college graduation, even after controlling for factors known to affect earnings, such as occupation, hours worked, and college major; and WHEREAS, Nearly four in ten mothers are primary breadwinners in their households, and nearly two-thirds are primary or significant earners, making pay equity critical to families’ economic security; and
WHEREAS, In 2009, the Lilly Ledbetter Fair Pay Act was signed into law, which gives employees their day in court to challenge a pay gap, although the Paycheck Fairness Act, which would have amended the Equal Pay Act by closing loopholes and improving the law’s effectiveness, continues to languish in Congress; and WHEREAS, Fair pay strengthens the security of families today and eases future retirement costs while enhancing the American economy; and
WHEREAS, Tuesday, March 15th, symbolizes the time in 2022 when the wages paid to American women catch up to the wages paid to men from the previous year.

NOW, THEREFORE, I, Donna Lind, Mayor of Scotts Valley, by virtue of the authority vested in me by the laws of Scotts Valley and California, do hereby proclaim March 15, 2022 to be “Equal Pay Day” in the City of Scotts Valley. I encourage all citizens of Scotts Valley to join me in this City of Scotts Valley
Mayor’s Proclamation

SPECIAL SET MATTER B
DATE: 03-16-2022

M I N U T E S
Meeting of the
Scotts Valley City Council
Date: March 2, 2022
Time: 6:00 PM

CONTACT INFORMATION MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
Zoom Videoconference The agenda was posted
2-25-2022 at City Hall and on the
Internet at www.scottsvalley.org.

CALL TO ORDER 6:00 PM
The City Council meeting was called to order at 6:05 pm.

MOMENT OF SILENCE

ROLL CALL
ELECTED OFFICIALS PRESENT:

Donna Lind, Mayor
Jim Reed, Vice Mayor
Jack Dilles, Council Member
Randy Johnson, Council Member
Derek Timm, Council Member
CITY STAFF MEMBERS PRESENT:

Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Steve Walpole, Chief of Police
Taylor Bateman, Community Development Director
Casey Estorga, Administrative Services Director
Chris Lamm, Public Works Director/City Engineer
Lauren Lambert, Deputy City Clerk

SPECIAL SET MATTER
Mayor Lind presented a Mayor’s Proclamation proclaiming March 2022 as Red Cross Awareness Month.

COMMITTEE REPORTS
CM Dilles reported he attended a meeting of the Santa Margarita Groundwater Agency and discussed the Agency Board came up with a formula for administrative costs to be allocated to the various agency’s that are part of the Santa Margarita Groundwater Agency.

CM Dilles reported that Scotts Valley Water applied for a $9.4 million state grant. With the grant money they plan to build a twelve-inch bi-directional intertie pipe which would go between Santa Cruz and Scotts Valley and would be used in case of drought or

AGENDA ITEM A
DATE: 03-16-2022
001
City Council Meeting Minutes Page 2
Date: March 2, 2022
emergency to allow water to go one direction or the other. They also want to build a large extraction well to be able to get more water as needed.

CM Dilles reported on behalf of Mayor Lind, he attended the Youth Advisory Network and discussed what cities are doing to support youth and giving them a voice. They heard about many things like a Youth Bill of Rights, Youth Internships, Youth Advisory Committee.

CM Timm reported they had their first kickoff of the Town Center Subcommittee with our new City Manager LaGoe and discussed an overview of the work ahead.

CM Timm reported the Economic Recovery Subcommittee has not finalized the list of grantees to bring back to council for the CBDG Grant.

CM Johnson reported the Town Center Subcommittee met and discussed the importance of having a Town Center for the City.

CM Johnson reported the Economic Recovery Subcommittee met and discussed the CBDG Grants and the delays that have happened with the application process working with the businesses and the State.

Mayor Lind reported the Santa Cruz Metropolitan Transit District (SCMTD) Ad Hoc Committee met about the final process of recruitment for the CEO position.

Mayor Lind reported SCMTD has also been meeting about the budget and Mayor Lind has passed the information on to the Finance Department that she thought would be helpful. SCMTD has been able to get some pension obligation bonds with a good rating and strong reserves.

Mayor Lind reported she has been working on the 4th of July parade planning with other Councilmembers and announced they are looking for volunteers to help with traffic control, registration and organization. If anyone is interested contact Mayor Lind.

CITY MANAGER REPORT

1. Scotts Valley Police Department: The Scotts Valley Police Department responded to Salinas’ request for mutual aid the evening their officer was killed in the line of duty. City Manager LaGoe appreciates our Police Department jumping in to help a fellow jurisdiction get through something so tragic.

2. City Clerk: This is the last week for our City Clerk Tracy Ferrara. She is working very hard up to the end to help the staff that will be taking over. She is documenting everything she does in order to help pass everything off before she leaves.
002
City Council Meeting Minutes Page 3
Date: March 2, 2022

PUBLIC COMMENT TIME
No one came forward.

ALTERATIONS TO CONSENT AGENDA
M/S: Reed/Dilles
To approve the Consent Agenda.

Carried 5/0 (AYES: Dilles, Johnson, Lind, Reed, Timm)

CONSENT AGENDA
A. Approve City Council minutes of 2-16-2022
B. Approve check registers dated 2-17-2022 and 2-25-2022 C. Approve Resolution No. 2007.5 authorizing the continued use of teleconferenced meetings pursuant to Assembly Bill 361

ALTERATIONS TO REGULAR AGENDA
M/S: Dilles/Johnson
To approve the Regular Agenda.

Carried 5/0 (AYES: Dilles, Johnson, Lind, Reed, Timm)

REGULAR AGENDA

1. Discussion of Independence Day Celebration Budget 2022

City Manager LaGoe presented the staff report and answered questions from Council.

M/S: Johnson/Dilles
To approve the Independence Day Celebration Budget for July 3, 2022 of $70,000 of the General Fund
Carried 5/0: (AYES: Dilles, Johnson, Lind, Reed, Timm)

2. Discussion of Fiscal Year 2021/2022 Strategic Plan Update

City Manager LaGoe presented the staff report with a PowerPoint and answered questions from Council.

Consensus to set up a study session to go through the Strategic Plan which will be a public meeting for any of the public that would like to listen and attend. 003
City Council Meeting Minutes Page 4
Date: March 2, 2022

3. Consider Council Chamber information technology upgrades budget and contract approval

Administrative Services Director Casey Estorga presented the staff report with a PowerPoint and answered questions from Council.

M/S: Dilles/Johnson
To approve the use of ARPA funds in the amount of $131,777.00 to the Council Chamber Technology Upgrade project and authorizing the City Manager to execute a professional services contract with Conti LLC to deliver the project.

Carried 5/0: (AYES: Dilles, Johnson, Lind, Reed, Timm)

4. Consider introduction and first reading of Ordinance No. 110.7 Amending Sections

10.08.020 and 10.18.020 of Title 10 of The Scotts Valley Municipal Code (SVMC) adding private streets subject to vehicle code enforcement

Police Chief Walpole presented the staff report and answered questions from Council.

M/S: Dilles/Timm
To introduce and waive first reading of Ordinance No. 110.7 Amending Sections

10.08.020 and 10.18.020 of Title 10 of The Scotts Valley Municipal Code (SVMC) adding private streets subject to vehicle code enforcement Carried 5/0: (AYES: Dilles, Johnson, Lind, Reed, Timm)

5. Future Council agenda items
Police Chief Walpole and staff are working on the Tobacco Ordinance, and let Council know it will be coming to Council in the near future.

CA Powell announced the City Council will be meeting in closed session in pursuant to Government Code Section 54957 to confer with legal counsel regarding public employment position title City Manager.

ADJOURNMENT
The meeting adjourned at 7:20 p.m.

Approved: _____________________________
Donna Lind, Mayor
Attest: ___________________________
Lauren Lambert, Deputy City Clerk
004

M I N U T E S
Special Closed Session Meeting of the
Scotts Valley City Council
Date: March 2, 2022
Time: 6:30 PM

ROLL CALL
ELECTED OFFICIALS PRESENT:

Donna Line, Mayor
Jim Reed, Vice Mayor
Jack Dilles, Council Member
Randy Johnson, Council Member
Derek Timm, Council Member
CITY STAFF MEMBERS PRESENT:

Mali LaGoe, City Manager
Kirsten Powell, City Attorney
CALL TO ORDER 7:25 PM
The City Council meeting was called to order at 7:25 pm.

CONVENE TO CLOSED SESSION

CLOSED SESSION SUBJECT(S)
The City Council convened to closed session at 7:25 p.m. to discuss the following items:
(1) Pursuant to Government Code Section 54957, the City Council met in closed session to confer with the legal counsel regarding public employment.

RECONVENE TO OPEN SESSION
The City Council reconvened to open session at 7:56 p.m.

REPORT ON ACTION TAKE DURING CLOSED SESSION
Mayor Lind announced that there was nothing to report.
005
City Council Meeting Minutes Page 2
Date: March 2, 2022

ADJOURNMENT
The meeting adjourned at 7:56 p.m.

Approved: _____________________________
Donna Lind, Mayor
Attest: __________________________
Lauren Lambert, Deputy City Clerk
006

SCOTTS VALLEY ACCOUNTS PAYABLE CITY OF SCOTTS VALLEY
03/09/2022 14:17:49 Check Register GL050S-V08.17 COVERPAGE GL540R
Report Selection:

RUN GROUP... 030422 COMMENT... 03/04/2022 A/P

DATA-JE-ID DATA COMMENT
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W-03042022-663 03/04/2022 A/P
Run Instructions:

Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP RT L 01 Y S 6 066 10

AGENDA ITEM B
DATE: 03-16-2022
001

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
03/09/2022 14:17:49 Check Register
GL540R-V08.17 PAGE 1
BANK VENDOR CHECK# DATE AMOUNT

BA GENERAL CHECKING ACCOUNT
001840 A TOOL SHED, INC. 123485 03/04/22 1,782.67
000041 ACC BUSINESS 123486 03/04/22 1,789.61
003919 ACCO ENGINEERED SYSTEMS 123487 03/04/22 2,665.46 004057 ANDREWS/SELINA 123488 03/04/22 50.00
003149 AQUATIC BIOASSAY & 123489 03/04/22 4,550.00
004029 ARMSTRONG/AMANDA 123490 03/04/22 50.00
000097 AT&T 123491 03/04/22 1,106.41
004035 BABCOCK/COLTON 123492 03/04/22 50.00
001928 BATEMAN/TAYLOR 123493 03/04/22 50.00
001373 BAY TREE, LLC 123494 03/04/22 3,620.38
004067 BEERS/OLIVIA 123495 03/04/22 50.00
001963 BELLVILLE/WAYNE 123496 03/04/22 633.80
003170 BOGARD CONSTRUCTION INC 123497 03/04/22 6,062.50 004063 CAPITOL BARRICADE, INC. 123498 03/04/22 556.80
003668 CARNEY/HANNAH 123499 03/04/22 96.00
015008 CENTRAL HOME SUPPLY 123500 03/04/22 308.78
003887 CHEUNG/ATHENA 123501 03/04/22 50.00
002091 COMCAST 123502 03/04/22 148.31
001546 CRAIG/ROBERT J 123503 03/04/22 900.00
001103 CREATIVE FORMS & CONCEPT 123504 03/04/22 83.22
000975 DEAN/MICHAEL R. 123505 03/04/22 50.00
003990 DIBENEDETTO/GUNNAR 123506 03/04/22 50.00
003248 EARTHWORKS 123507 03/04/22 3,280.00
004005 ESTORGA/CASEY 123508 03/04/22 275.60
000582 FERRARA/TRACY A. 123509 03/04/22 82.68
003706 GRANADOS/JUSTIN 123510 03/04/22 50.00
000057 HACH COMPANY 123511 03/04/22 1,368.15
004059 HAROS/JOANNA 123512 03/04/22 50.00
003944 HEBARD/TYLER 123513 03/04/22 50.00
003980 HUTCHISON/TREVOR 123514 03/04/22 320.00
001903 JONES/KIMARIE 123515 03/04/22 165.91
003993 JORDAN/ZACHARY 123516 03/04/22 678.00
001660 KING/KATI 123517 03/04/22 50.00
004018 LAMBERT/LAUREN 123518 03/04/22 50.00
004046 LAMM/CHRIS 123519 03/04/22 50.00
003761 LEDGER/CHASE 123520 03/04/22 50.00
003389 LOCKE/CERINA 123521 03/04/22 50.00
003913 LONG/AMANDA 123522 03/04/22 50.00
001591 MARKELL/ROD 123523 03/04/22 1,974.00
000248 MARKLEY'S GUN SHOP 123524 03/04/22 600.00
001815 MC GRATH/TRISH 123525 03/04/22 50.00
001234 MC GRAW DDS/BERNARD 123526 03/04/22 219.50
001852 MCCAIN INC. 123527 03/04/22 7,467.00
003171 MICHALAK/GENE 123528 03/04/22 125.00
000218 MID VALLEY SUPPLY 123529 03/04/22 462.52
003570 MISSION COMMUNICATIONS, 123530 03/04/22 581.40
000967 MONTEREY BAY SYSTEMS 123531 03/04/22 218.02
001615 OLIN CORP-CHLOR ALKALI 123532 03/04/22 2,561.54
002

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
03/09/2022 14:17:49 Check Register
GL540R-V08.17 PAGE 2
BANK VENDOR CHECK# DATE AMOUNT

BA GENERAL CHECKING ACCOUNT
003766 ORMONDE/ROBERT 123533 03/04/22 50.00
000101 PACIFIC GAS & ELECTRIC C 123534 03/04/22 45,252.20 000098 PALACE BUSINESS SOLUTION 123535 03/04/22 993.76
004036 PEREZ/ERIC 123536 03/04/22 54.00
004045 PHILLIP D NEUMAN 123537 03/04/22 1,757.70
001097 PRODESSE PROPERTY GROUP 123538 03/04/22 3,523.52 000463 RALEY'S 123539 03/04/22 69.99
003012 ROBBINS/AMANDA 123540 03/04/22 269.73
001118 RUTHERFORD/JAYSON 123541 03/04/22 50.00
000134 S.V. WATER DISTRICT 123542 03/04/22 7,105.56
001894 S.V. WATER DISTRICT - BU 123543 03/04/22 151.40
000135 SAN LORENZO VALLEY WATER 123544 03/04/22 45.01
003367 SANTA CRUZ LIVE SCAN, IN 123545 03/04/22 60.00
000133 SCOTTS VALLEY SPRINKLER 123546 03/04/22 510.21
000228 SOIL CONTROL LAB 123547 03/04/22 204.00
002065 SOTO/ART 123548 03/04/22 50.00
003958 STANDEN/BENJAMIN 123549 03/04/22 320.00
004026 STEELE-FREITAS/SETH 123550 03/04/22 50.00
001113 STERICYCLE INC 123551 03/04/22 139.57
001361 STEVENS DDS/JOHN A 123552 03/04/22 135.00
003757 SWEDBERG ELECTRIC INC. 123553 03/04/22 9,927.00
001085 SYCAL ENGINEERING INC 123554 03/04/22 1,230.00
003973 THOMAS/TYLER 123555 03/04/22 50.00
003548 TORO PETROLEUM CORP 123556 03/04/22 4,269.89
003908 TRANSUNION RISK & ALTERN 123557 03/04/22 79.00
001560 TRITON CONSTRUCTION 123558 03/04/22 956.55
001831 USA BLUE BOOK 123559 03/04/22 698.56
001106 VERIZON WIRELESS 123560 03/04/22 178.57
000154 WINCHESTER AUTO STORES 123561 03/04/22 2.63
001625 YOSHIDA DDS/NOREEN 123562 03/04/22 761.50
GENERAL CHECKING ACCOUNT 124,528.61 ***
003

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
03/09/2022 14:17:49 Check Register
GL540R-V08.17 PAGE 3
BANK VENDOR CHECK# DATE AMOUNT
REPORT TOTALS: 124,528.61
RECORDS PRINTED - 000120
004

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
03/09/2022 14:17:49 Check Register
GL060S-V08.17 RECAPPAGE

GL540R
FUND RECAP:

FUND DESCRIPTION DISBURSEMENTS
---- ----------------------------
001 GENERAL 38,099.27
004 RECREATION 668.78
010 WASTEWATER OPERATIONS 55,892.11
011 TERTIARY TREATMENT PLANT 8,702.09
019 AFFORDABLE HOUSING 1,974.00
023 SVRDA SUCCESSOR AGENCY 7,143.90
028 SENIOR CENTER 1,044.28
050 PINEWOOD EST LNDSCP MAINT DT 9.53
077 SKYPARK MAINT ASSESS DIST 438.75
088 LIBRARY FACILITIES-MEAS "S" 6,062.50
112 DENTAL INS INTERNAL SERV 2,603.40
123 COMMUNITY FACILITY CENTER 1,890.00
TOTAL ALL FUNDS 124,528.61
BANK RECAP:

BANK NAME DISBURSEMENTS
---- ----------------------------
BA GENERAL CHECKING ACCOUNT 124,528.61
TOTAL ALL BANKS 124,528.61
005

SCOTTS VALLEY ACCOUNTS PAYABLE CITY OF SCOTTS VALLEY
03/11/2022 12:32:55 Check Register GL050S-V08.17 COVERPAGE GL540R
Report Selection:

RUN GROUP... 031122 COMMENT... 03/11/2022 A/P

DATA-JE-ID DATA COMMENT
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006

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
03/11/2022 12:32:55 Check Register
GL540R-V08.17 PAGE 1
BANK VENDOR CHECK# DATE AMOUNT

BA GENERAL CHECKING ACCOUNT
001405 AFLAC-FLEX ONE 123563 03/11/22 1,696.64
001670 AT &T 123564 03/11/22 3,553.80
000097 AT&T 123565 03/11/22 9.53
003899 BIGLER CONSTRUCTION 123566 03/11/22 26,030.95
000437 BRASS KEY LOCKSMITH 123567 03/11/22 9.84
003894 BURKE, WILLIAMS & SORENS 123568 03/11/22 5,412.75 003178 BUTANO GEOTECHNICAL 123569 03/11/22 2,388.95
003521 CARD SERVICE CENTER 123570 03/11/22 80.00
003521 CARD SERVICE CENTER 123571 03/11/22 180.78
003887 CHEUNG/ATHENA 123572 03/11/22 57.92
003596 COPWARE,INC 123573 03/11/22 85.00
000037 CRYSTAL SPRINGS WATER CO 123574 03/11/22 42.25
000037 CRYSTAL SPRINGS WATER CO 123575 03/11/22 24.40
001896 D & G SANITATION 123576 03/11/22 981.86
001920 DASH MEDICAL GLOVES 123577 03/11/22 1,337.86
000207 DEPARTMENT OF JUSTICE 123578 03/11/22 64.00
003334 DOGHERRA'S TOWING 123579 03/11/22 200.00
001597 ENVIRONMENTAL INNOVATION 123580 03/11/22 4,895.00 001881 GRAINGER 123581 03/11/22 881.83
000801 HINDERLITER, DE LLAMAS & 123582 03/11/22 1,879.84 000283 HOSE SHOP 123583 03/11/22 178.98
001841 IDEXX LABORATORIES, INC. 123584 03/11/22 272.37
004024 K & D LANDSCAPING, INC. 123585 03/11/22 3,320.00 003987 KEITH HIGGINS 123586 03/11/22 3,920.00
000066 KING'S PAINT & PAPER 123587 03/11/22 307.16
001992 KOSMONT COMPANIES, INC 123588 03/11/22 358.80
000284 LOGAN & POWELL, LLP 123589 03/11/22 18,850.00
003565 MANAGEMENT PARTNERS 123590 03/11/22 1,950.00
003570 MISSION COMMUNICATIONS, 123591 03/11/22 2,253.60 000083 MISSION UNIFORM SERVICE 123592 03/11/22 692.11
001418 MONTEREY REGIONAL 123593 03/11/22 3,248.23
000939 NATIONAL COMTEL NETWORK 123594 03/11/22 14.63
000323 NBS GOVERNMENT FINANCE G 123595 03/11/22 1,778.67 003152 PETERSON POWER SYSTEMS, 123596 03/11/22 36,096.80 003503 PURETEC INDUSTRIAL WATER 123597 03/11/22 248.90
000127 SANTA CRUZ SENTINEL 123598 03/11/22 1,456.00
000128 SCARBOROUGH LUMBER 123599 03/11/22 2,988.31
001672 SILICON VALLEY PAVING IN 123600 03/11/22 73,386.70 004076 STECH CONSULTING, LLC 123601 03/11/22 4,050.00
004020 STOEBERL/NICHOLAS 123602 03/11/22 38.50
003581 SUEZ TREATMENT SOLUTIONS 123603 03/11/22 9,461.80 000143 SUMMIT UNIFORMS 123604 03/11/22 168.44
001085 SYCAL ENGINEERING INC 123605 03/11/22 1,776.64
001366 U.S. BANCORP OFFICE 123606 03/11/22 1,300.62
004030 U.S. BANK CORPORATE 123607 03/11/22 21,368.70
004032 URETSKY SECURITY 123608 03/11/22 3,092.71
000151 VISION SERVICE PLAN 123609 03/11/22 1,236.90
003145 WAGE WORKS 123610 03/11/22 125.00
007

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
03/11/2022 12:32:55 Check Register
GL540R-V08.17 PAGE 2
BANK VENDOR CHECK# DATE AMOUNT

BA GENERAL CHECKING ACCOUNT
004077 WILLIAM STARK 123611 03/11/22 550.00
003971 WIZIX TECHNOLOGY GROUP, 123612 03/11/22 12.00
GENERAL CHECKING ACCOUNT 244,315.77 ***
008

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
03/11/2022 12:32:55 Check Register
GL540R-V08.17 PAGE 3
BANK VENDOR CHECK# DATE AMOUNT
REPORT TOTALS: 244,315.77
RECORDS PRINTED - 000160
009

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
03/11/2022 12:32:55 Check Register
GL060S-V08.17 RECAPPAGE

GL540R
FUND RECAP:

FUND DESCRIPTION DISBURSEMENTS
---- ----------------------------
001 GENERAL 77,275.94
002 RECYCLING/ENVIRONMENTAL 3,905.00
003 GAS TAX - SPECIAL STATE TRST 73,386.70
004 RECREATION 4,631.55
010 WASTEWATER OPERATIONS 45,593.14
011 TERTIARY TREATMENT PLANT 11,238.44
026 PENSION OBLIGATION BOND FUND 1,778.67
028 SENIOR CENTER 66.51
123 COMMUNITY FACILITY CENTER 49.70
150 GENERAL CAPITAL IMPROVEMENTS 26,346.24
312 POLICE - BUDGET ACT OF 2016 43.88
TOTAL ALL FUNDS 244,315.77
BANK RECAP:

BANK NAME DISBURSEMENTS
---- ----------------------------
BA GENERAL CHECKING ACCOUNT 244,315.77
TOTAL ALL BANKS 244,315.77
010

AGENDA ITEM C
DATE: 03-16-2022
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: March 16, 2022
TO: Honorable Mayor and City Council
FROM: Kirsten M. Powell, City Attorney
SUBJECT: CONTINUED VIRTUAL MEETINGS FOR CITY COUNCIL AND

APPOINTED BOARDS

SUMMARY OF ISSUE
On October 26, 2021, the City Council passed Resolution No. 2007 authorizing continued virtual meetings and extended those meetings on November 17, 2021, December 15, 2021, January 12, 2022, February 2, 2022 and March 2, 2022, by Resolution Nos. 2007.1, 2007.2, 2007.3, 2007.4 and 2007.5. Pursuant to AB 361, legislative bodies may use teleconferencing to conduct public meetings during a proclaimed State of Emergency, as defined under the California Emergency Services Act, if one of the following circumstances apply: (A) State or local officials have imposed or recommended measures to promote social distancing; (B) The legislative body is meeting to determine whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees; or (C) The legislative body has determined that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

At this point, the State of Emergency the Governor proclaimed on March 4, 2020 is still in effect today and the recommended measures to promote social distancing are still in place. Although the infection rates are beginning to decrease, the threat continues. The Omicron variant is still present in Santa Cruz County and a subvariant of Omicron has recently been identified which is spreading.

The City currently does not have the technological capabilities to hold hybrid meetings so anyone wanting to participate in the meetings would have to attend in person. As a result, holding public meetings of the City Council or other appointed bodies in person continues to present imminent risks to the health and safety of attendees.

FISCAL IMPACT
There is no fiscal impact associated with continuing virtual meetings.

STAFF RECOMMENDATION
Adopt Resolution No. 2007.6 confirming the need for virtual meetings pursuant to AB 361.

TABLE OF CONTENTS PAGE
Resolution No. 2007.6 ..................................................................................................... 2 001
RESOLUTION NO. 2007.6

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY

AUTHORIZING THE CONTINUED USE OF TELECONFERENCED MEETINGS PURSUANT TO ASSEMBLY BILL 361
WHEREAS, on March 4, 2020, Governor Newsom issued a Proclamation of State of Emergency, pursuant to the Emergency Services Act, in response to the COVID-19 pandemic; and
WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29-20, which suspended certain requirements of Government Code section 54950 et seq., the Ralph M. Brown Act (“Brown Act”), in order to allow local legislative bodies to conduct meetings telephonically or electronically without a physical meeting place; and WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21, providing that the provision suspending the Brown Act requirements in Executive Order N-29-20 would remain in effect through September 30, 2021, at which point the suspension would expire; and
WHEREAS, on September 16, 2021, Governor Newsom signed Assembly Bill 361 (“AB 361”), an urgency measure effective upon adoption, amending the Brown Act to allow legislative bodies to continue teleconferencing during a proclaimed State of Emergency, and either state or local officials have imposed or recommended measures to promote social distancing, or the legislative body determines that meeting in person would present imminent risks to the health or safety of attendees; WHEREAS, the State of Emergency proclaimed by the Governor on March 4, 2020, remains in effect; and
WHEREAS, state and local officials have imposed and/or recommended measures to promote social distancing; and
WHEREAS, people who are fully vaccinated are currently not required to wear masks indoors but those who are not fully vaccinated must continue to wear masks; and WHEREAS, although the Omicron variant appears to be waning, a new subvariant has been identified which is rapidly spreading and may be more contagious than the Omicron variant; and
WHEREAS, according to the CDC, community transmission of COVID-19 in Santa Cruz County is high due to the unpredictable nature of the virus and potential proliferation of COVID-19 variants and it continues to recommend people wear masks; and WHEREAS, on October 26, 2021, the City Council of the City of Scotts Valley passed Resolution No. 2007 to continue the use of virtual meetings and confirmed the need for virtual meetings on November 17, 2021, with passage of Resolution No. 2007.1, on December 15, 2021, with the passage of Resolution No. 2007.2, on January 12, 2022, with the passage of Resolution No. 2007.3, on February 2, 2022, with the passage of Resolution No. 2007.4 and on March 2, 2022, with the passage of Resolution No. 2007.5; and
002
WHEREAS, the City Council of the City of Scotts Valley hereby finds and determines that the above conditions continue to create an imminent risk to the health and safety of attendees should they be required to attend meetings in person in a shared indoor public meeting space; and
WHEREAS, the City Council wishes to authorize remote meetings as set forth in this Resolution.

NOW THEREFORE, be it resolved by the City Council of the City of Scotts Valley as follows:

A. The City hereby acknowledges the Governor of the State of California’s Proclamation of State of Emergency related to the COVID-19 pandemic remains in effect; and B. The City finds that due to the continued threat of COVID-19 transmission in the community, holding in person meetings for the City Council and other appointed bodies of the City of Scotts Valley would present imminent risks to the health or safety of attendees.

C. The City Council and other appointed bodies of the City of Scotts Valley are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

D. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) thirty days from the adoption of this Resolution, or (ii) such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the City Council and the appointed bodies of the City of Scotts Valley may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

The above and foregoing Resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a regular meeting held on the 16th day of March, 2022 by the following vote:

AYES:

NOES
ABSENT:

ABSTAIN:

Approved: _____________________________
Donna Lind, Mayor
Attest: ______________________________
Lauren Lambert, Deputy City Clerk
003

AGENDA ITEM D
DATE: 03-16-2022

City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: March 16, 2022
TO: Honorable Mayor and City Council
FROM: Mike Dean, Police Captain
APPROVED: Mali LaGoe, City Manager
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 110.7; AMENDING SECTIONS 10.08.010 AND 10.18.020 OF TITLE 10 OF

THE SCOTTS VALLEY MUNICIPAL CODE (SVMC) ADDING

PRIVATE STREETS SUBJECT TO VEHICLE CODE

ENFORCEMENT

SUMMARY OF ISSUES
On March 2, 2022, the City Council approved the introduction and first reading of Ordinance No. 110.7, which amends the Scotts Valley Municipal Code (SVMC) to add new private streets to the SVMC in order for them to be subject to California Vehicle Code Enforcement.

The City of Scotts Valley’s housing landscape has change over the last several years.

Housing developments including: The Grove, The Cove, The Terrace and Polo Ranch were added or are currently under construction. With these new housing developments, private roads were added and approved by the City as part of these projects. In order to enforce parking and other vehicle regulations on those private roads, they must be added to SVMC Section 10.18.020 and private street enforcement must be added to SVMC Section 10.08.020.

Section 10.08.010 Scotts Valley Vehicle Municipal Code (SVMC) declares that, “No person or business who owns or has possession, custody or control of any vehicle shall park or leave standing, or cause to be left parked or left standing, such vehicle upon any public street, public highway in the city for a period of seventy-two or more consecutive hours.” By adding a reference to private streets to this section, vehicles can also be removed from private streets under certain circumstances. 001

AGENDA ITEM D
DATE: 03-16-2022
Section 10.18.010B SVMC declares “that it is in the public interest to provide vehicle code enforcement on private streets…regularly used by the public.” Newly created private streets will be added to SVMC Section 10.18.020 to enable vehicle code enforcement.

The adoption of this ordinance would add the following private streets to Scotts Valley Municipal Code 10.18.020: Cider Court, Coastal Oak Court, Cove Lane, Ginger Lane, Hansen Terrace, Polo Ranch Road, Shady Oak Way, Skyforest Way, Thomas Terrace, Village Lane and Creekside Court and allow the removal of vehicles on private streets.

FISCAL IMPACT
There is no fiscal impact to the City.

RECOMMENDATION
It is recommended that City Council approve the second reading and adoption of the Ordinance No. 110.7, modifying Sections 10.08.010 and 10.18.020 of Title 10 of the Scotts Valley Municipal Code (SVMC).

TABLE OF CONTENTS PAGE
Ordinance No. 110.7 ....................................................................................................... 3 002
3 ORDINANCE NO. 110.7

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY MODIFYING SECTION 10.18.020 OF CHAPTER 10.08 OF TITLE 10 OF THE

SCOTTS VALLEY MUNICIPAL CODE REGARDING PRIVATE STREETS

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AS FOLLOWS:

SECTION 1. Section 10.08.020 of Chapter 10.08 of Title 10 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“10.08.020- Removal of vehicles.

In the event that any vehicle is parked or left standing on any public street or highway or any street designated in Section 10.18.020 in the city for a period of seventy-two or more consecutive hours, any member of the California Highway Patrol, or any regularly employed and salaried deputy of the sheriff's office of the county of Santa Cruz or any regularly employed and salaried officer of the Scotts Valley police department, or the chief of police of the city, may remove such vehicle from the highway in the manner and subject to the requirements of the Vehicle Code of the state of California.”
SECTION 2. Section 10.18.020 of Chapter 10.18 of Title 10 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“10.18.020 - Private streets subject to Vehicle Code enforcement.

The following streets shall be subject to the Vehicle Code enforcement:

Acorn Court, Appaloosa Court, Arabian Way, Ball Drive, Baymonte Christian School, Belair Court, Belair Drive, Blake Lane, Blossom Way, Cadillac Drive, Camp Evers Lane, Canham Road, Carriage Lane, Casa Way, Castle Ridge Way, Cathy Lane, Cider Court, Club Drive, Coastal Oak Court, Coopers Hawk Court, Country Lane, Cove Lane, Crescent Court, Crescent Drive, Cubre Lane, Dana Court, Deer Trail Way, Dell Way, Dunn Lane, Dunslee Way, Elderberry Court, El Carlo Drive, Elzer Drive, Falcon Ridge Road, Flora Lane, Forest Hill, Fox Sparrow Court, Frapwell Court, Fred Court, Gaston Circle, Ginger Lane, Gold Court, Golden Eagle Court, Grace Way, Green Valley Road, Greenwood Court, Greenwood Street, Hansen Terrace, Harvest Lane, Hidden Drive, Horseshoe Court, Johnston Way, Jolley Way, K Street, Kelly Way, Kelsey Court, Kent Court, Kings Drive, Kings Canyon Court, La Escuela, Lassen Park Court, Locke Way, Lockhart Gulch, Lucinda Street, MacLeod Way, Meadow Way, Milano Court, Mill Site Road, Morgan Court, Nashua Drive, Old Coach Road, Orchard Run, Pioneer Lane, Pippin Way, Polo Ranch Road, Quarter Horse Court, Quien Sabe Road, Ray Way, Ridgecrest Lane, Saddleback Ridge Road, San Augustine Way, Sandraya Heights, Sawbuck Court, Sawyer Circle, Sawyer Court, Scott Court, Scotts Valley High School, Scotts Valley Middle School, Scotts Valley Square Shopping Center, Scotts Village Shopping Center, 003
4 Shadow Court, Shady Oak Way, Shasta Park Court, Sherman Court, Sherman Drive, Sidesaddle Circle, Sidesaddle Court, Silverwood Drive, Silver Birch Lane, Single Spur Court, Siri Lane, Skyforest Way, Southwood Drive, Spring Lakes Drive, Sramek Lane, Sucinto Drive, Sunridge Drive, Sunridge Court, Sunset Terrace, Tankers Run, Terrace View Court, Terrace View Drive, Timber Ridge Court, Thomas Terrace, Thompson Lane, Trammel Way, Tuscany Court, Twin Pines Drive, Venice Way, Viki Court, Village Lane, Vine Hill School, Wells Road, Willis Road, Windward Place, Woodhill Drive, Woodside Court, York Road.”
SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction such portion shall be deemed a separate, distinct and independent provision of such Ordinance and shall not affect the validity of the remaining portions thereof.

SECTION 4. REPEALS CONFLICTING ORDINANCES. All other ordinances of the City of Scotts Valley or provisions of the Scotts Valley Municipal Code which are in conflict with this Ordinance are hereby repealed to the extent of such conflict.

SECTION 5. CEQA COMPLIANCE. The City Council finds and determines that the enactment of this Ordinance is not a “project” as that term is used in the California Environmental Quality Act (“CEQA;” Cal. Pub. Resources Code Section 21000 et seq.) or the State CEQA Guidelines (Cal. Code of Regs., Title 14, Section 15000 et seq.).

Therefore, no environmental assessment is required or necessary.

SECTION 6. EFFECTIVE DATE. The above and foregoing ordinance was introduced for a first reading on the 2nd day of March, 2022, and passed and adopted on the 16th day of March, 2022, at a duly held meeting of the City Council of the City of Scotts Valley by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:______________________________
Donna R. Lind, Mayor
ATTEST: ________________________________
Lauren Lambert, Deputy City Clerk

APPROVED
AS TO FORM: _____________________________
Kirsten Powell, City Attorney
004
AGENDA ITEM 1
DATE: 03-16-2022

City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: March 16, 2022
TO: Honorable Mayor and City Council
FROM: Chris Lamm, Director of Public Works
APPROVED: Mali LaGoe, City Manager
SUBJECT: SCOTTS VALLEY UNIFIED SCHOOL DISTRICT MUTUAL

COOPERATION AGREEMENT FOR BEFORE AND AFTER

SCHOOL CHILDCARE

SUMMARY OF ISSUE
Background
In late March of 2020, the City of Scotts Valley’s Recreation Division was shuttered due to the COVID-19 pandemic. The City has been operating with the barest of staffing, awaiting the lifting of pandemic restrictions and the development of a restoration plan to rebuild its services. While this restoration plan was in process, the City Council prioritized the return of a critical community service in spring of 2020, childcare. To achieve this priority and considering the City’s limitations, the City partnered with the Boys and Girls Clubs of Santa Cruz County to deliver youth summer camp and after school child care programs.

The City has been developing a restoration plan to sustainably return recreation services to the community. Part of that plan was to obtain an independent analysis of best practices of how the City can restore services to equal or better service levels in a cost-effective manner in time to reopen services in 2022.

A recreation assessment was developed with 24 recommendations on the reactivation of recreation services. The report, was presented at a joint session with the City Council and Parks and Recreation Commission (PRC) on September 29, 2021. Councilmembers and Commissioners supported the recommendations presented. The recommendations as it relates to childcare services were as follows:

Recommendation 5 - Identify the costs and benefits of extending the Boys Club and Girls Club childcare contract through the 2022-2023 school year.

Recommendation 6 - Develop a long-term plan for the provision of childcare services in Scotts Valley as an outsourced City service.

Over the course of the final few months of 2021, an implementation plan was developed to support the recommendations developed and concurrently City Staff and Scotts Valley 001
AGENDA ITEM 1
DATE: 03-16-2022

Unified School District (SVUSD) Staff began discussions on the future of the childcare programs and the facility needs to support the program.

In discussions with SVUSD Staff, a willingness to operate childcare services as an outsourced SVUSD program has been expressed if the City is unable to provide services.

Similar to the actions the City would have taken per the recommendations of the Recreation Assessment, the SVUSD Staff have been exploring programs that would utilize a 3rd party operator to manage the program. In order to plan for the 2022/2023 school year, a determination of who would lead the program, the City or SVUSD, was identified as an urgent item to complete the contracting of services and planning for the upcoming year.

Additionally, the facilities at both Vine Hill and Brook Knoll Elementary schools are aging and in need of replacement. The facility at Vine Hill School was closed permanently in 2020 due to degraded conditions. The City included a capital improvement project in the FY2021/22 budget to replace the modular building at Vine Hill in an amount of $1,400,000 to be funded through the federal government’s upcoming infrastructure bill.

In January of 2022, staff provided an update to Council on the above items and recommended the City Schools Joint Subcommittee convene to discuss facility and program needs. Additionally, City Council authorized $75,000 to proceed with demolition of the existing facility at Vine Hill School. Abatement and demolition are planned to occur the week of spring break (April 4-8).

City Schools Subcommittee (CSS)
The CSS met January 27, January 31, and February 15 and was provided intermediate updates on progress of various tasks related program and facility (primarily short term) needs. Through the discussions, a resulting Mutual Cooperation Agreement was developed defining roles and responsibilities for both the City and SVUSD.

Responsibilities of the SVUSD:

1. Enter into a lease agreement and oversee installation of temporary modular facilities

2. Provide maintenance and repair on temporary facilities

3. Operate or contract the school aged childcare program

4. Coordinate return of temporary modular at the end of the agreement term

5. Collaborate with City and childcare provider to identify needs and funding sources for subsidies and scholarship assistance for families.

Responsibilities of the City:

1. Remove the existing modular building

2. Provide funding support up to $259,963 for the childcare facility at Vine Hill School

3. Collaborate with SVUSD and childcare provider to identify needs and funding sources for subsidies and scholarship assistance for families 002
AGENDA ITEM 1
DATE: 03-16-2022

The SVUSD Board approved the Mutual Cooperation Agreement at their March 8, 2022 meeting. In addition, on March 8th, the United States House of Representatives passed the Consolidated Appropriations Act of 2022, which includes $1.375 million for Scotts Valley’s Vine Hill Elementary School Building Replacement Project. The legislation is expected to be passed in the Senate and signed by the President in the coming weeks.

FISCAL IMPACT
The Mutual Cooperation Agreement will result in payments to the SVUSD not to exceed $259,963 over three fiscal years. An appropriation of General Funds will be required for FY 21/22. Future years obligations will be included in each annual budget. If federal funding through the above-mentioned legislation becomes available to reimburse the General Fund initial outlay for this project, Staff will return to the Council to recommend the restoration of the General Funds appropriated through this action.

FY21/22: $124,885
FY22/23: $49,000
FY23/24: $86,087

STAFF RECOMMENDATION

1. Staff recommends that the City Council approve a Mutual Cooperation Agreement with the Scotts Valley Unified School District in an amount not to exceed $259,963; and

2. Staff recommends that the City Council appropriate $124,885 of unassigned General Fund to meet the agreement obligations for FY 21/22.

TABLE OF CONTENTS PAGE
Mutual Cooperation Agreement………………………………………………………………..3 Letter from Congresswoman Anna Eshoo dated March 9, 2022……………......................8 003
004
005
006
007
008
009
AGENDA ITEM 2
DATE: 03-16-2022

City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: March 16, 2022
TO: Honorable Mayor and City Council
FROM: Casey Estorga, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: RECEIVE THE FISCAL YEAR 2020-21 ANNUAL

COMPREHENSIVE FINANCIAL REPORT (ACFR) AND RECEIVE
FISCAL YEAR 2021-22 MID-YEAR FINANCIAL REPORT,

INCLUDING PROPOSED BUDGET AMENDMENTS

SUMMARY OF ISSUE
This report provides an update of the City’s current financial performance, including an overview of the prior year as reported by the Fiscal Year (FY) 2020-21 Annual Comprehensive Financial Report (ACFR) and a Mid-Year Financial Review for FY 2021-

22. The mid-year financial review covers a six-month period from July 1, 2021 through December 31, 2021 and identifies mid-year revenue and expenditure trends for all City funds and a preliminary forecast for FY 2021-22 year-end fund balances.

FY 2020-21 Annual Comprehensive Financial Report Results Based on the information in the City’s Annual Comprehensive Financial Report (ACFR) as completed by the City’s external auditors, Badawi & Associates, the City ended Fiscal Year 2020-21 with roughly $6.8 million in unassigned General Fund Reserves. This equates to approximately 49% of annual General Fund operating expenditures included in the FY 2021-22 Adopted Budget.

FY 2021-22 Mid-Year Financial Review (through December 31, 2021) Staff analyzed revenues and expenditures for all City funds during the first half of the current Fiscal Year. In general, some expenditures are trending below FY 2021-22 budgeted amounts and some revenues are trending above FY 2021-22 budgeted amounts.

These trends are the result of many factors, including Scotts Valley’s ongoing recovery from the COVID-19 pandemic and its associated economic impacts, the City Council’s adoption of a prudent FY 2021-22 budget that reflected the unstable reality of the Scotts Valley and broader economies, and budget impacts from the regional labor market 001
AGENDA ITEM 2
DATE: 03-16-2022

resulting in ongoing staffing vacancies and general challenges with undertaking capital projects, also related to staffing limitations and overall workload capacities of both City of Scotts Valley staff and the City’s contractors/consultants.

Items of importance are highlighted below:

General Fund Expenditures (Fund 001)
• General Government: In total, General Fund operating expenditures are projected to be roughly $800,000 (or 6%) under budget. This is primarily the result of staffing vacancies and challenges with undertaking projects in several different departments throughout the City.
• Information Technology (IT): The City’s IT expenditures are projected to be approximately $260,000 over budget, primarily as a result of necessary equipment and infrastructure upgrades as a result of the COVID-19 pandemic.

General Fund Revenues (Fund 001)
General fund revenues have performed better than originally anticipated, which appears consistent with most jurisdictions around the State. Sales Tax, TOT, and various fees generated by the Community Development Department continue to outpace projections while all other general fund revenues are tracking relatively consistent with the FY 2021-22 Adopted Budget.
• General Fund Revenues: In total, General Fund revenues are projected to be roughly $1.7 million (or 12%) over budget. This is not a long-term trend and includes $1.4 million dollars in one-time funding. Staff has made a conservative projection that long-term revenues will experience a year-over-year increase of roughly 2% in FY 2021-22.
• Property Taxes: Property tax revenues are projected to be on-budget. • Sales Taxes: The FY 2021-22 adopted budget included approximately $5.7 million of sales tax revenues. Based on data through December 2021, and assuming a similar level of economic activity for the remainder of the Fiscal Year, this presents an opportunity to conservatively increase budgeted sales tax revenues by approximately $745,000 (or 21%) which is closely tied to a projected increase in revenues associated with Measure Z. • Transient Occupancy Taxes (TOT): TOT revenues are projected to be roughly $170,000 (or 12%) above budget. This is the result of better-than-anticipated occupancy levels as the region eases into a recovery from the pandemic with business and leisure travel slowly starting to return to pre-pandemic levels. • Utility Users Taxes (UUT): UUT revenues are projected to be on-budget. 002
AGENDA ITEM 2
DATE: 03-16-2022

• Community Development Fees: Charges for service have increased significantly in FY 2021-22, in part due to an increase in the number of residential and commercial projects. Mid-Year actuals have already surpassed FY 2021-22 budgeted amounts. Conservative estimates have revenues roughly double the budgeted amount of $686,300 in total charges for service, with a projected year-end revenue closer to $1.4 million.

FY 2021-22 GENERAL FUND YEAR-END FUND BALANCE PROJECTION The table below summarizes the FY 2021-22 year-end fund balance projection, considering projected revenue and expenditure trends discussed above.

General Fund (Funds 001 and 006)
Adopted Budget
FY 2021-22
Projected Results
FY 2021-22
Beginning Fund Balance (07/01/2021) $ 5,353,000 $ 6,859,758 Revenues 13,985,000 15,657,264
Expenditures 14,110,067 13,508,870
Net Revenues Over (Under) Expenditures (125,067) 2,148,394 Transfer In (Out) (627,265) (1,406,262)
Net Surplus (Deficit) (752,332) 742,132
Ending Fund Balance (06/30/2022) $ 4,600,668 $ 7,601,890

FISCAL IMPACT
There is no fiscal impact as a result of accepting the attached report and providing direction to the City Manager to amend the FY 2021/22 Adopted Budget.

STAFF RECOMMENDATION
It is recommended that the City Council takes the following actions:

1. Accept the Annual Comprehensive Financial Report for Fiscal Year 2020-21; and

2. Accept FY 2021-22 Mid-Year Financial Report through December 31, 2021; and

3. Approve Resolution No. 630.41.1 amending the FY 2021-22 Annual Budget.

TABLE OF CONTENTS PAGE
Resolution 630.41.1 ………………………………………………………………………….…4
City of Scotts Valley Annual Comprehensive Financial Report…………………….……….6 003
RESOLUTION NO. 630.41.1

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AMENDING THE FY 2021-22 ADOPTED BUDGET
WHEREAS, the City Council approved the Fiscal Year 2021-22 Annual Budget for the City of Scotts Valley on June 16, 2021 by Resolution 630.41; and WHEREAS, Badawi & Associates, an external auditor, completed the City of Scotts Valley’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2020-21 on March 14, 2022, thus providing additional information about the City’s financial performance; and
WHEREAS, staff conducted financial analysis using data from the FY 2020-21 ACRF and other financial performance measures, including year-to-date information about Fiscal Year 2021-22 actual revenues and actual expenditures; and WHEREAS, the Fiscal Year 2021-22 Adopted Budget was approved in an unpredictable environment, with many economic variables unknown as a result of the COVID-19 pandemic; and
WHEREAS, based on this analysis, and access to more data, staff is recommending the City Council amend the Fiscal Year 2021-22 Adopted Budget to provide a more accurate reflection of the City’s financial activities and overall financial position; and WHEREAS, City Council approval is needed to amend the Fiscal Year 2021-22 Adopted Budget.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City of Scotts Valley that the Fiscal Year 2021-22 Adopted Budget is amended in the manner described below:

REVENUES
004

EXPENDITURES
The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a meeting held on the 11th day of March, 2022 by the following vote:

AYES: DILLES, JOHNSON, LIND, REED, TIMM
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Approved:

Donna Lind, Mayor
Attest:

Lauren Lambert, Deputy
City Clerk
005
City of
Scotts Valley
Scotts Valley, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Prepared by:

Finance Department
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City of Scotts Valley
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
Page
i

INTRODUCTORY SECTION
Table of Contents ........................................................................................................................................................ i Transmittal Letter ...................................................................................................................................................... v Directory of City Officials ........................................................................................................................................ xi Organization Chart .................................................................................................................................................. xii Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association ...................................................................................................... xiii

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

Government-Wide Financial Statements:

Statement of Net Position ................................................................................................................................. 25 Statement of Activities ...................................................................................................................................... 26 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet .................................................................................................................................................. 30 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ............................................................................. 33 Statement of Revenues, Expenditures and Changes in Fund Balances .................................................. 34 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ................................... 36 Proprietary Fund Financial Statements:

Statement of Net Position ............................................................................................................................. 37 Statement of Revenues, Expenses and Changes in Net Position ............................................................ 38 Statement of Cash Flows ............................................................................................................................... 39 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position............................................................................................................ 40 Statement of Changes in Fiduciary Net Position ....................................................................................... 41 Notes to Basic Financial Statements ................................................................................................................... 45 008
City of Scotts Valley
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents, Continued
Page
ii
Required Supplementary Information (Unaudited):

Budgets and Budgetary Accounting .................................................................................................................. 83 Budgetary Comparison Schedules:

General Fund .................................................................................................................................................. 84 Successor Housing Agency Fund ................................................................................................................ 85 General Facilities Fund .................................................................................................................................. 86 Traffic Impact Mitigation Fund .................................................................................................................... 87 Lennar Fund .................................................................................................................................................... 88 Defined Benefit Pension Plan:

Schedule of the City's Proportionate Share of
the Net Pension Liability - Last 10 Years .................................................................................................... 89 Schedule of Pension Contributions – Last 10 Years ..................................................................................... 89 Other Postemployment Benefits
Schedule of Changes in Net OPEB Liability and
Related Ratios during the Measurement Period – Last 10 Years ............................................................ 90 Schedule of OPEB Contributions – Last 10 Years ......................................................................................... 90 Supplementary Information:

General Capital Improvements Fund ................................................................................................................ 93 Enterprise Funds:

Budgetary Comparison Schedule – Recreation Fund .................................................................................. 94 Budgetary Comparison Schedule – Wastewater Fund ................................................................................ 95 Non-Major Governmental Funds:

Combining Balance Sheet ................................................................................................................................. 96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................. 102 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Recycling Fund ........................................................................................................................................... 107 Gas Tax Fund .............................................................................................................................................. 108 Drainage Construction Fun ...................................................................................................................... 109 Parks & Recreation Facilities Fund .......................................................................................................... 110 Police Facility Fund .................................................................................................................................... 111 Senior Center Fund .................................................................................................................................... 112 Mt. Hermon Traffic Mitigation Fund ...................................................................................................... 113 Green Building Fees Fund ........................................................................................................................ 114 Tree Replacement Fund ............................................................................................................................ 115 Pinewood Estates Landscape Maintenance Fund ................................................................................. 116 Skypark Landscape Maintenance District .............................................................................................. 117 Library Fees Fund ...................................................................................................................................... 118 SMIP Fee ...................................................................................................................................................... 119 Community Center Operations ................................................................................................................ 120 Supplemental Law Enforcement Services .............................................................................................. 121 009
City of Scotts Valley
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents, Continued
Page
iii
Supplementary Information, Continued:

Surface Transportation Projects Grant .................................................................................................... 122 Police Development Fees Fund ................................................................................................................ 123 EDG Revolving Loan Fund ....................................................................................................................... 124 Homeland Security Grant Fund ............................................................................................................... 125 Disability Compliance Fund ..................................................................................................................... 126 Library Facilities Fund .............................................................................................................................. 127 Transportation - Measure D Fund ........................................................................................................... 128 Police Budget Act Fund ............................................................................................................................. 129 CalTrans – Get Everyone Moving Fund .................................................................................................. 130 Planning Grants Program Fund ................................................................................................................. 131 COP Debt Service ....................................................................................................................................... 132 Pension Obligation Bonds ......................................................................................................................... 133 Custodial Funds:

Combining Statement of Fiduciary Net Position ........................................................................................ 134 Combining Statement of Changes in Fiduciary Net Position ................................................................... 135 STATISTCAL SECTION (unaudited)
Narrative Explanation of Statistical Section Categories ................................................................................. 139 Financial Trends (last ten fiscal years):

Table 1: Net Position by Component - Last Ten Fiscal Years ..................................................................... 142 Table 2: Changes in Net Position- Last Ten Fiscal Years ............................................................................ 144 Table 3: Fund Balances, Governmental Funds- Last Ten Fiscal Years ...................................................... 148 Table 4: Statement of Revenues, Expenditures, and Changes in Fund Balances- Last Ten Fiscal Years ........................................................................................................................ 150 Revenue Capacity Information (last ten fiscal years):

Table 5: Assessed Values of Taxable Property- Last Ten Fiscal Years ....................................................... 154 Table 6: Direct and Overlapping Property Tax Rates- Last Ten Fiscal Years .......................................... 155 Table 7: Principal Property Taxpayers- Last Ten Fiscal Years ................................................................... 156 Table 8: Property Tax Levies and Collections- Last Ten Fiscal Years ....................................................... 161 Debt Capacity Information (last ten fiscal years):

Table 9: Direct and Overlapping Governmental Activities Debt ............................................................... 164 Table 10: Ratios of Outstanding Debt by Type- Last Ten Fiscal Years ..................................................... 165 Table 11: Legal Debt Margin Information- Last Ten Fiscal Years .............................................................. 166 Table 12: Pledged Revenue Coverage - Last Ten Fiscal Years ................................................................... 167 Demographic and Economic Information (last ten fiscal years):

Table 13: Demographic and Economic Statistics- Last Ten Fiscal Years .................................................. 170 Table 14: Principal Employers- Last Ten Fiscal Years ................................................................................. 171 Operating Information (last ten fiscal years):

Table 15: Full-Time Equivalent City Employees- Last Ten Fiscal Years ................................................... 177 Table 16: Capital Asset Statistics by Function I Program- Last Ten Fiscal Years .................................... 178 Table 17: Operating Indicators by Function I Program- Last Ten Fiscal Years ....................................... 179 010
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011

CITY OF SCOTTS VALLEY

OFFICE OF THE CITY MANAGER
1 Civic Center Drive • Scotts Valley • California • 95066 Phone (831) 440-5600 • Facsimile (831) 438-2793 • www.scottsvalley.org March 14, 2022
Honorable Mayor and City Council
and Residents of the City of Scotts Valley
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT - JUNE 30, 2021

REPORT PURPOSE AND ORGANIZATION
The Annual Comprehensive Financial Report (ACFR) for the City of Scotts Valley for fiscal year July 1, 2020 through June 30, 2021 is hereby submitted. State law requires the accounts and fiscal affairs of all municipal entities be examined annually by an independent certified public accountant. The City's independent auditor, Badawi & Associates, Certified Public Accountant, has audited the City's financial statements and issued an opinion that financial statements for Fiscal Year 2020-2021 (FY 2020-21), are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). This opinion, along with the basic financial statements of the City, are hereby submitted as the ACFR for the City of Scotts Valley for the fiscal year ended June 30, 2021, and included in the financial section of this report.

The independent audit of the financial statements is also typically conducted in conjunction with the federally mandated Single Audit. The standards governing the Single Audit require the independent auditor report on items beyond fair presentation of the financial statements, including internal controls and compliance with legal requirements involving the administration of federal awards. A Single Audit Report on Federal Award Programs was not required or prepared in fiscal year 2021 because the City had less than $750,000 in federal grant expenditures.

This report reflects a comprehensive overview of the City of Scotts Valley's finances as represented by city management. Management assumes full responsibility for completeness, accuracy of data, and fairness of presentation, including all footnotes and disclosures.

Additionally, management believes the data presented is accurate in all material respects and is reflected in a manner that demonstrates the financial position and operational results of the City.

The audit provides users with reasonable assurance that the information presented is free from material misstatements. As management, we assert that to the best of our knowledge, this financial report is complete and reliable in all material respects. v
012
In accordance with the guidelines recommended by the Government Finance Officers Association of the United States and Canada (GFOA), and the standards adopted by the Governmental Accounting Standards Board, the accompanying report consists of three parts:

I. Introductory Section - Letter of Transmittal, List of Principal Officials and Organization Chart, and Certificate of Achievement from the GFOA.

IL II. Financial Section - Independent Auditor's opinion, the Management's Discussion and Analysis (MD&A), Government-wide Financial Statements, Fund Financial Statements, Notes to the Financial Statements followed by Required Supplementary Information and combining statements of the Non-major Fund Financial Statements.

III. III. Statistical Section - Presenting ten-year historical trends of financial and nonfinancial information.

Accounting principles, generally accepted in the United States of America, require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This transmittal letter is designed to complement MD&A and should be read in conjunction with it. The City's MD&A follows the report of the independent auditor.

CITY OF SCOTTS VALLEY PROFILE
The City of Scotts Valley is a small community that encompasses an area of approximately 5 square miles with a population of approximately 12,224. Scotts Valley is located in Santa Cruz County and is six miles north of the City of Santa Cruz and 26 miles southwest of San Jose.

Form of Government
The City of Scotts Valley is a general law City, incorporated in August 2, 1966. It is subject to the framework and procedures established by California state law and operates under the Council-City Manager form of government. The Council is comprised of five council members that are elected directly by the citizens to four-year terms, and every year the council selects one member each to serve as Mayor and Vice-Mayor. The Council has the authority to establish all laws and regulations with respect to municipal affairs, subject to the limitations of the City Municipal Code and State legislation.

The City Council appoints a City Manager to serve as the City's chief administrative officer.

The City Manager provides direction, leadership and supervision to all City departments and ensures that all City Council policies are implemented in the day-to-day operations of the City.

City Services
The City services include police protection, parks and public works, community development, recreation, wastewater, and City administration including human resources, information technology, and finance. Independent special districts provide fire protection and water services.
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The ACFR includes all financial activities of the City and the Successor Agency to the form.er Redevelopment Agency of the City of Scotts Valley, com.prising of two separate legal entities.

City Council m.em.bers also serve as the governing board m.em.bers of the Successor Agency and the City Manager serves as its executive director. Financial activities of the Successor Agency are also subject to an independent oversight board.

Financial data for all funds through which services are provided by the City have been included in this report based on the criteria adopted by the Government Account Standards Board (GASB), which is the authoritative body in establishing United States Generally Accepted Accounting Procedures (GAAP) for local governments.

Internal Control Policy
City Management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from. loss, theft, or misuse and to ensure that adequate accounting data is com.piled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are m.et. The concept of reasonable assurance recognizes that:
1) the cost of controls should not exceed the benefits likely to be derived; and 2) the valuation of costs and benefits requires estimates and judgments by management.

Budgetary Control Policy
In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions em.bodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Enterprise Funds, and Internal Service Funds are included in the annual appropriated budget. A Five-Year Financial Plan, or Capital Improvement Plan (CIP), is also adopted for the Capital Projects. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is established by function and activity within an individual fund. See Note 1 under Required Supplementary Information to the financial statements for further information on budgets and budgetary accounting.

The City's budgetary records are maintained on a modified accrual basis. Revenues are recorded when measurable and available and expenditures are recorded when goods or services are received and the liability incurred. The City produces an annual budget and a five-year financial plan which serves as the foundation for the City of Scotts Valley financial planning and control. Based on the City's financial management policies, the City is required to maintain a balanced operating budget.

In accordance with the City's Municipal Code, the budget is adopted by resolution on or before June 30th for the ensuing fiscal year. The City Council m.ay appropriate, am.end, or transfer funds by an affirmative vote at any regular or special Council meeting. vii
014
As demonstrated by the statements and schedules included in the Financial Section of this report, the City continues to meet its responsibility for sound financial management.

FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the economic environment in which the City operates.

In the first quarter of 2020, the City, along with the rest of the nation experienced a recession as a result of the COVID-19 pandemic and subsequent public health orders. Although the recession has since officially ended, the City continued to experience the economic effects.

The various orders intended to slow the spread of the virus curtailed large sectors of the economy- affecting two of the City's three major sources of General Fund revenue, sales tax and transient occupancy tax. The third major source of revenue is property tax. The three revenue sources combined account for approximately 70% of all General Fund revenues.

Sales Tax
Sales tax is the City's largest source of revenue, accounting for 47% of the General Fund Revenues. The City general fund sales tax consists of 1 % Bradley Burns, a portion of the Scotts Valley District Tax (Measure D) and a 0.50% Scotts Valley Temporary District Tax (Measure U) that became effective in April 2014. Sales tax receipts are volatile and reflect the changing local, state, and national economic conditions.

On March 3, 2020, voters overwhelmingly approved (with a 64.28% passage rate) Measure Z, which modified the local sales tax, beginning on July 1, 2020, eliminating the 0.50% rate and increasing it to 1.25%. For FY 2020-21, sales tax receipts of $6,666,056 million were $2,630,712 higher than the prior year's collection. Sales tax revenues increased as a result of the Measure Z and a favorable economy.

Property Tax
Scotts Valley's second major source of revenue is property tax, accounting for 15 % of the General Fund Revenues. In FY 2020-21, the General Fund received $1,024,730 in base property tax receipts, prior to the inclusion of Documentary Transfer Tax and Residual RDA distributions. This base amount was $26,299 higher than the prior year and is also the highest amount the City has received from its base property tax allocation over the last ten fiscal years.

Changes in property values have less of an impact on the City's property tax revenue compared to other cities in Santa Cruz County because of lower property tax rate. The City receives approximately 6.5% of the assessed property taxes (its apportionment rate).

Due to the dissolution of the Scotts Valley Redevelopment Agency (RDA), the RDA's tax increment revenues are distributed to the Successor Agency Redevelopment Property Tax Trust Fund (RPTTF) in amounts that are only sufficient to fund obligations approved by the independent Oversight Board.

The City's property tax revenues tend to not be as economically sensitive as sales tax revenues. Due to appreciating property values, property tax revenues have remained viii
015
relatively consistent. Based on historical data, it is anticipated this trend will continue into the next fiscal year.

Transient Occupancy Tax
Transient occupancy tax (TOT) represents 9% of General Fund revenues. In the current fiscal year, TOT revenues were adversely impacted by the stay-at-home orders issued by the State of California and the Santa Cruz County Health Services Department as a result of the COVID-19 pandemic that impacted the region, state, nation and the world. TOT revenues decreased 17% due to the continued effects of the COVID-19 pandemic. For FY 2020-21, TOT revenues of $1,261,100 were $259,272 lower than the prior year's collection.

MAJOR INITIATIVES
During FY 2020-21, the City accomplished the following:
• Started realizing the effects of the Measure Z use (sales) tax increase. • Continue to implement changes to service delivery as the City pivoted with the easing of COVID-19 restrictions, including opening up some recreation programs while maintaining service levels for all other City services. • Continued major renovations to the Scotts Valley Branch Library.

ECONOMIC FACTORS
The COVID-19 Pandemic continued to have an adverse impact on the City and the county.

Tourism and non-essential travel were curtailed, impacting transient occupancy taxes.

Reductions in fuel sales and in-store retail drove reductions in sales tax revenues. Most of the recreation programs remained closed as group gatherings and sporting events continued to be limited.

Effects of the pandemic and recent downturn continued through FY 2020-21 and it is expected that some of its impacts will continue through the coming year. The deployment of vaccines and federal stimulus packages have been critical to the recovery of local government revenues as they have provided relief to the unemployed, small businesses, and state and local governments.

The unemployment rates at the local, state, and national levels continue to improve compared to the prior year. In December 2021, the unadjusted unemployment rate for Scotts Valley was

3.2 percent compared to 6.2 percent unadjusted in March 2021. The Scotts Valley MSA June 2021 unemployment rate continued to be lower than the unadjusted unemployment for the State (7.9 percent) and the nation (5.7 percent).

OTHER INFORMATION
Independent Audit: The Government Code requires an annual audit by independent certified public accountants selected by the City Council. The City has complied with this requirement. The auditor's opinion is included in the financial section of this report. The City is also required to undergo an annual Single Audit in conformity with the provisions of the Single Audit Act and the U.S. Office of Management and Budget Circular A-133, Audits of ix
016
States, Local Governments and Non-Profit Organizations, unless exempt. The City did not meet the minimum threshold of federal funding to require a Single Audit for FY 2020-21.

Awards: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Scotts Valley for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2019. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report.

This report must satisfy both generally accepted accounting principles and applicable legal requirements. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standard for preparation of state and local government financial reports.

A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report (ACFR) continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

ACKNOWLEDGMENTS
Preparation of this ACFR was accomplished by the professional and dedicated services of the Finance Department and the City's independent public auditor, Badawi & Associates. We would like to extend our appreciation to Selina Andrews, Finance Manager; Laurie Grundy, former Finance Manager; Amanda Long, Accountant II; and Amanda Armstrong, Human Resources Manager for their coordination in preparing this report.

Further appreciation is extended to the Mayor and the City Council for their support in planning and conducting the financial affairs of the City in a responsible and progressive manner.

Respectfully submitted,
Mali LaGoe, City Manager
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xiii

CITY OF SCOTTS VALLEY

PRINCIPAL CITY OFFICIALS
JUNE 30, 2021

CITY COUNCIL MEMBERS

Derek Timm Mayor
Jim Reed Vice Mayor
Jack Dilles Councilmember
Donna Lind Councilmember
Randy Johnson Councilmember

CHIEF ADMINISTRATIVE OFFICIALS
Mali LaGoe City Manager
Kirsten Powell City Attorney
Tracy Ferrara City Clerk
Steve Walpole, Jr. Chief of Police
Chris Lamm Public Works Director
Taylor Bateman Community Development Director
Casey Estorga Administrative Services Director
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xii

CITY OF SCOTTS VALLEY

ORGANIZATION CHART

CITY ATTORNEY

CITY CLERK

FINANCE POLICE PLANNING PUBLIC
WORKS

CITY MANAGER
MAYOR

CITY COUNCIL

CITIZENS OF SCOTTS VALLEY
019
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Scotts Valley
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
xiii 020
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021
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Scotts Valley
Scotts Valley, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Scotts Valley, California (City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
022
To the Honorable Mayor and Members of the City Council
of the City of Scotts Valley
Scotts Valley, California

Page 2 ends

2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, pension information, and OPEB information on pages 5 to 19 and 83 to 90 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, major fund budgetary comparison schedules, combining and individual nonmajor fund financial statements and budgetary comparison schedules, and statistical information on pages 93-179, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The major fund budgetary comparison schedules and combining individual nonmajor fund financial statements and budgetary comparison schedules on pages 93-179 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the major fund budgetary comparison schedules and combining and individual nonmajor fund financial statements and budgetary comparison schedules on pages 93-179 are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
023
To the Honorable Mayor and Members of the City Council
of the City of Scotts Valley
Scotts Valley, California

Page 3 ends

3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 14, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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.

Badawi and Associates, CPAs
Berkeley, California
March 14, 2022
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025
5 City of Scotts Valley
Finance Department
Scotts Valley, California

MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of the City of Scotts Valley’s Annual Comprehensive Financial Report provides a narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2021. Readers are encouraged to consider the information presented here in conjunction with the accompanying letter of transmittal and the basic financial statements.

FINANCIAL HIGHLIGHTS
The City’s net position as of June 30, 2021 is $28,015,721. The current year change in net position is an increase of $3,433,776. Of the total net position, $34,278,715 is invested in capital assets (net of related debt) and $10,529,435 has restrictions on their use leaving a negative $16,792,429 as unrestricted. The current increase in the City’s net position is a combination of governmental activities increasing by $3,738,663 and business-type activities decreasing by $304,887.

As of June 30, 2021, the City’s governmental funds (General Fund, special revenue funds, debt service funds, and capital project funds) have a combined fund balance of $17,823,116, an increase of $4,456,052 from the previous year. This is a combination of an increase of $2,951,487 in the General Fund, an increase of $1,037,912 in other major funds, and an increase of $466,653 in non-major funds. Of the total City governmental fund balance, $139,532 is non-spendable, $9,782,727 is restricted, $1,330,504 is assigned, and $6,570,353 is unassigned.

In March 2020, ballot, the voters of Scotts Valley approved a ballot initiative for an increase in local transactions and use tax that increased the local sales tax rate from 0.5% to 1.25% effective July 1, 2020, for a period not to exceed twelve years. The previous local transactions and use tax measure went into effect on April 1, 2014. The City recorded revenues from the new measure totaling $6,666,056 for the fiscal year, an increase of $2,630,712 over the previous fiscal year.

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts: management’s discussion and analysis (this section), the basic financial statements, required supplementary information, and an optional section that presents a combining statement for non-major governmental funds. The basic financial statements include two kinds of statements that present different views of the City.  The first two statements are government-wide financial statements that provide both longterm and short-term information about the City’s overall financial status 026
6 OVERVIEW OF THE FINANCIAL STATEMENTS (continued)
 The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City’s operations in more detail than the governmentwide statements. - The governmental funds statements tell how general government services such as public safety, were financed in the short term as well as what remains for future spending.
- Proprietary fund statements offer both short-term and long-term financial information about the activities the government operates like businesses, such as the sewer system and recreation.
- Fiduciary fund statements provide information about the financial relationships (such as special assessment bond funds) in which the City acts solely as a trustee or agent for the benefit of others, to whom the resources in question belong.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed information. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. In addition to these required elements, the City included a section with combining statements that provide details about the City’s non-major governmental funds, each of which are added together and presented in single columns in the basic financial statements.

Figure 1 below summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and content of each of the statements.

Figure 1
Major Features of the City’s Government-wide and Fund Financial Statements Government-wide Governmental Proprietary Fiduciary
Statements Funds Funds Funds
Scope Entire City government (except
fiduciary funds) and the City’s
component units
The activities of the City that are not
proprietary or fiduciary
Activities the City operates
similar to private businesses
Instances in which
the City is the
trustee or agent for
another entity’s
resources
Required
financial
statements
Statement of net position
Statement of activities
Balance sheet,
Statement of revenue,
expenditures, and changes in fund
balances
Statement of net position;
Statement of revenues,
expenses, and changes in
net position;
Statement of cash flows
Statement of
fiduciary net
position; Statement
of changes in
fiduciary net position
Accounting
basis and
measurement
focus
Accrual accounting and
economic resources focus
Modified accrual accounting and
current financial resources focus
Accrual accounting and
economic resources focus
Accrual accounting
and economic
resources focus
Type of
asset/liability
information
All assets and liabilities, both
financial and capital, and
short-term and long-term
Only assets expected to be used
up and liabilities that come due
during the year or soon thereafter;
no capital assets included
All assets and liabilities,
both financial and capital,
both short-term and longterm
All assets and
liabilities, both
short-term and
long-term
Type of
inflow/outflow
information
All revenues and expenses
during the year, regardless
of when cash is received or
paid
Revenue for which cash is
received during or soon after the
end of the year; expenditures when
goods or services have been
received and payment is due
during the year or soon thereafter
All revenues and expenses
during the year, regardless
of when cash is received or
paid
All revenues and
expenses during
the year, regardless
of when cash is
received or paid
027
7 OVERVIEW OF THE FINANCIAL STATEMENTS (continued)
Government-wide Statement
The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all the government’s assets and liabilities. All current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the City’s net position and how it has changed. Net position (the difference between the City’s assets and liabilities) is one way to measure the City’s financial health, or position. Over time, increases or decreases in the City’s net position are an indicator of whether its financial health is improving or deteriorating, respectively.

The government-wide financial statements of the City are divided into two categories:
 Government activities: Most of the City’s basic services are included here, such as the police, public works, planning, building, park/street maintenance, and general administration. Various taxes, franchise fees, service charges, and investment earnings finance most of these activities.
 Business-type activities: The City charges fees to customers to help cover the cost of certain services it provides. The City’s wastewater system and recreation programs are included here.

Fund Financial Statements
The fund financial statements provide more detailed information about the City’s most significant funds, not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes. Some funds are required by State law and by bond covenants. The City Council establishes other funds to control and manage money for particular purposes such as capital project grant funds or to show that it is properly using certain restricted taxes such as gas tax revenues.

The City has three types of funds:
 Government funds: Most of the City’s basic services are included in government funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out, and (2) the balances remaining at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed shortterm view that helps you 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 additional long-term focus of the government-wide statements, there is additional information at the bottom of the governmental funds statement, or on the subsequent page, that explains the relationship (or differences) between them.
 Proprietary funds: Services for which the City charges customers a fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both short-term and long-term financial information. The City’s enterprise funds (one type of proprietary fund) are the same as its business-type activities, but provide more detail and additional information, such as cash flows. Internal service funds (the other kind of proprietary fund) report activities that provide supplies and services for the City’s other programs and activities, such as the City’s Dental Insurance Program. 028
8 OVERVIEW OF THE FINANCIAL STATEMENTS (continued)
 Fiduciary funds: The City is the trustee for some bondholders and fiduciary for others of the City’s limited obligation improvement bonds associated with various special assessment districts within the City. The City is also responsible for other assets that, because of a trust arrangement, can be used for their intended purposes. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. These activities are excluded from the City’s government-wide financial statements because the City cannot use these assets to finance its operations.

Notes to the Financial Statements
The 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 45-80 of this report.

Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information including the City of Scotts Valley budgetary information, pension plan information and schedules, and post-employment benefits schedule of funding progress.

FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
The following analysis pertains to the government-wide statements as described above in the overview of the financial statements.

Net Position: A condensed presentation of the government-wide net position shown below totals $28,015,721 as of June 30, 2021. This is an increase of $3,433,776, or 14%, from the previous year. This is a combination of an increase in assets and decrease in liabilities. The entire Statement of Net Position can be seen on Page 25.
2021 2020 2021 2020 2021 2020
Current and other assets 25,432 $ 22,363 $ 5,043$ $ 47,795 4,748 $ 27,111 $ Capital assets, net 32,084 31,547 10,342 42,426 42,252 10,705 Total assets 57,516 53,910 15,385 72,901 69,363 15,453
Deferred outflows of resources 5,013 4,856 1,091 6,104 5,981 1,125 Total assets and deferred
outflows of resources 62,529 58,766 16,476 79,005 75,344 16,578 Long-term debt outstanding 38,078 37,455 7,740 45,818 44,815 7,360 Other liabilities 2,403 3,026 210 2,613 3,311 285
Total liabilities 40,481 40,481 7,949 48,430 48,126 7,645 Deferred inflows of resources 2,022 1,998 536 2,558 2,636 638 Total liabilities and deferred
inflows of resources 42,503 42,479 8,486 50,989 50,762 8,283 Net position:

Net investment in capital assets 23,937 24,557 10,342 34,279 35,261 10,704 Restricted 9,783 8,334 747 10,530 9,057 723
Unrestricted (13,694) (16,604) (3,098) (16,792) (3,132) (19,736) Total net position $ 16,287 20,025 $ 7,991$ $ 28,016 8,295 $ 24,582 $ Governmental Activities Business-Type Activities Total
City of Scotts Valley
Net Position
(in thousands of dollars)
029
9 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE (continued) The largest portion of the City’s total net position of $28 million, $42 million is reflected in its investment in capital assets (e.g., land, buildings, machinery, equipment, and infrastructure), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to its residents. Consequently, these assets are not available for future spending.

Although the City of Scotts Valley’s investment in capital assets is reported net of related debt, it should be noted that resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used. An additional portion of the City’s total net position, $10.5 million, represents resources that were subject to external restrictions on how they may be used. The remaining ($18.4) million of the City’s total net position is “unrestricted” and may be used to meet the government’s ongoing obligations to citizens and creditors. The unrestricted portion of fund balance is negative primarily due to the City’s $19.9 million net pension liability, and $15.6 million net OPEB liability.

Changes in Net Position: The change in government-wide net position went from a decrease of $2,116,681 in fiscal year 2020 to an increase of $3,433,776 in FY 2021. This is a result of total revenues increasing by $3,238,749, or 17.8%, and total expenses decreasing by $2,312,108, or

11.4% as illustrated in the table below.
2021 2020
Program revenues $ 7,032 $ 6,468
General revenues 14,334 11,659
Governmental expenses (14,275) (15,765)
Business-type expenses (3,657) (4,479)
Net increase (decrease) 3,434 (2,117)
(in thousands of dollars)
030
10 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE (continued) Revenues: Program revenues for governmental activities increased by $1,254,912, or 46%. This is made up of an increase in capital grants and contributions of $175,475 and an increase in operating grants and contributions of $793,232, and an increase in charges for services of $286,205. This is due to the completion of certain grant funded capital projects in FY 2021.

Program revenues for business-type activities decreased $690,534, or 18%. This consists of a decrease in charges for services of $775,525 offset by an increase in capital grants and contributions of $84,991. Charges for services in Wastewater decreased by $97,963, or 3%, due to a decrease in commercial usage. Charges for services in recreation programs, however, decreased by $677,562, or 95%, due primarily to the ongoing impact related to the COVID-19 pandemic. The increase in capital grants and contributions was due to certain wastewater system improvements.

Expenses: Governmental activities expenses decreased by $1,489,479, or 9%. This decrease is the net effect of reduced expenses associated with vacancies in general government, public safety, and planning and building, partially offset by increases in public works and interest expenses.

Expenses for business-type activities decreased by $822,229, or 18%. Wastewater expenses increased by $937,889, or 41%, due to certain wastewater improvements. Recreation expenses decreased by $1,760,118, or 80%, due to the prior reduction in recreation staffing as a result of the continued effects related to the COVID-19 pandemic. 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Governmental activities:

General government 3,119 3,830 99 165 - - - - 99 165
Public safety 5,520 6,412 108 78 - - 267 92 375 170
Planning and building 1,388 1,450 1,201 835 - - - - 1,201 835 Public works 3,912 3,692 298 342 1,985 1,191 - - 2,283 1,533 Interest 336 382 - - - - - - -
Total governmental activities 14,275 $ 15,766$ 1,706 $ 1,420$ 1,985 $ 1,191 $ 267 $ 92 $ 3,958$ 2,703$ Business-type activities:

Wastewater 3,206 2,268 2,925 3,023 - - 116 31 3,041 3,054 Recreation programs 2,211 451 33 710 - - - 33 710
Total business-type activities 3,657 $ 4,479$ 2,958 $ 3,733$ $ -$ 116 - $ 31 $ 3,074$ 3,764$ Program Revenues
(in thousands)
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions Total
031
11 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE (continued) Statement of Activities/Change in Net Position: Below is a table of the current and prior fiscal year recap of the changes in net position. The entire Statement of Activities can be seen on Pages 26-27.
2021 2020 2021 2020 2021 2020
Program revenues:

Charges for services $ 1,706 $ 1,420 $ 2,958 $ 3,733 $ 4,664 $ 5,153 Operating grants 1,985 1,192 - - 1,985 1,192
Capital grants 267 92 116 31 383 123
General revenues: -
Sales tax 6,666 4,035 - - 6,666 4,035
Property tax 2,143 2,205 - - 2,143 2,205
Other taxes 3,652 3,616 - - 3,652 3,616
Motor vehicle in lieu 1,267 1,205 - - 1,267 1,205
Investment earnings 34 244 35 44 69 288
Miscellaneous 569 311 - - 569 311
Total revenues 18,289 14,320 3,109 3,808 21,398 18,128
Expenses:

General Government 3,119 3,830 - - 3,119 3,830
Public Safety 5,520 6,412 - - 5,520 6,412
Planning & Building 1,388 1,450 - - 1,388 1,450
Public Works 3,911 3,691 - - 3,911 3,691
Interest on Debt 336 382 - - 336 382
Wastewater 3,205 2,268 3,206 2,268
Recreation 451 2,211 451 2,211
Total expenses 14,274 15,765 3,656 4,479 17,932 20,244
Excess of (Deficiency) 4,013 (1,445) (579) (671) 3,434 (2,116) Sale of Real Property - - - - - -
Transfers (275) (300) 275 300 - -
Change in net position $ 3,738 $ (1,745) $ (305) $ (371) $ 3,433 $ (2,116) Net position:

Beginning of year 16,287 8,295
End of year $ 20,025 $ 7,990
Statement of Activities
Change in Net Position
(in thousands of dollars)
Governmental Activities Business-Type Activities Total
032
12 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE (continued) Revenue Chart: As shown in the Statement of Activities, revenues for FY 2020-21 totaled $21.4 million. The following graph includes program and general revenues and shows the percentage of total governmental and business-type revenues by source:

Expense Chart: As shown in the Statement of Activities, expenses for FY 2020-21 totaled $17.9 million. The following graph includes expenses and shows the percentage of total governmental and business-type activity expenses by function:

Charges for services
(governmental) 8%
Operating grants
(governmental) 9%
Capital grants
(governmental) 1%
Sales tax 31%
Property tax 10%
Transient occupancy
tax 6%
Other taxes
(governmental) 11%
Motor vehicle in
lieu 6%
Investment earnings
0%
Miscellaneous 3%
Charges for services
(business‐type) 14%
Capital grants
(business‐type) 1%
Revenue Resources
General Government
17%
Public Safety
31%
Planning & Building
8%
Public Works
22%
Interest and other
charges
2%
Wastewater
18%
Recreation
2%
Functional Expenses
033
13 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE (continued) Net Cost of Services: The following table presents the total cost of each of the City’s governmental and business-type activities as well as each activity’s net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost shows the financial commitment that was placed on the City’s taxpayers by each of these functions.

For governmental activities, total costs of $14,275,444 were offset by Program Revenues of $3,958,348 which included charges for services of $1,706,444, operating grants/contributions of $1,984,759, and capital grants/contributions of $267,145, bringing the net cost of services to $10,317,096. This is a decrease in net cost of $2,744,391 from the prior fiscal year.

For business-type activities, total costs of $3,656,979 was offset by charges for services of $2,957,820 and capital grants/contributions $116,195, bringing the net cost of services to $582,964. This is a decrease in net cost of $131,695 from the prior fiscal year.

A description of each program is listed below:
 General Government expenses comprise approximately 17% of all expenses. This includes City Council, City Manager, City Clerk, City Attorney, Finance, Administrative Services, and Risk Management. These programs are offset by administrative support fees and grants.
 Public Safety expenses comprise 31% of all expenses. Revenues from fines, citations, grants, and animal services partially offset the cost of this program.  Planning and Building expenses comprise approximately 8% of all expenses. Various building and planning fees, along with grant revenues, assist in funding these program costs.
 Public Works expenses comprise 22% of all expenses. This includes street, facility, park and fleet maintenance. Costs are partially offset by taxes and various fees.  Interest on long-term debt comprises 2% of all expenses. The interest expense is used to pay long-term debt obligations.
 Wastewater expenses comprises 18% of all expenses. Sewer service fees and charges to customers help to offset expenses.
 Recreation expenses comprise 3% of all expenses. These programs are primarily funded through recreational program revenues and the general fund.

Total Cost of Program Net Cost of
Services Revenue Services
General Government 3,118,926 $ 99,843 $ 3,019,083 $
Public Safety 5,520,484 375,385 5,145,099
Planning and Building 1,388,104 1,200,696 187,408
Public Works 3,911,638 2,282,424 1,629,214
Interest on long-term debt 336,292 - 336,292
Total Government 14,275,444 $ 3,958,348 $ 10,317,096 $
Wastewater 3,205,744 2,925,142 164,407
Recreation 451,235 32,678 418,557
Total business-type 3,656,979 $ 2,957,820 $ 582,964 $
Net Cost of Government and Business-type Activities
034
14 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The following analysis pertains to the fund financial statements (pages 31-41) in the overview of the financial statements.

There are no restrictions, commitments, or other limitations that would significantly affect the availability of fund resources for the future.

To provide an overview of the City’s funds, below is a table showing the increases and (decreases) to total assets, liabilities, revenues, and expenditures of the City fund types from FY 2019-20 to FY 2020-21. The total revenues and expenditures do not include any “other financing sources (uses).”
The largest increase in assets of City funds were assets in the Special Revenue Funds of $967,533 and are attributed to a culmination of increase in receivables. The largest increase in liabilities of City funds were $934,194, in the Capital Project Funds and are attributed to payables for construction work completed related to repair of Skypark and on-going library improvements.

The largest decrease in revenues was $128,236 in the Capital Project Funds, which reflect a decrease in facility and building rentals and other miscellaneous revenues. The increase of $423,652 in Special Revenue Funds expenditures was due to a variety of factors including increased traffic impact fees and contracted services costs associated with capital projects.

GENERAL FUND BUDGETARY HIGHLIGHTS
The General Fund is the main operating fund of the City. Its revenues are primarily derived from taxes and charges for services, which are used to pay for the traditional services provided by local government, public safety, parks, community development (building and planning), and public works.

Assets Laibilities Revenue Expenditure
General Fund (3,196,784) $ 265,749 $ 3,449,669 $ 26,041 $ Special Revenue Funds 967,533 (604,584) 816,366 423,652 Debt Service Funds 720 2,494 (20,104) (3,621)
Capital Project Funds (62,428) 934,194 (128,236) (224,044) Totals (2,290,959) $ 597,853 $ 4,117,695 $ 222,028 $
Increase (Decrease) from Prior year
035
15 GENERAL FUND BUDGETARY HIGHLIGHTS (continued)
Revenues:

FY 2020-21 General Fund revenue budget reflects an amendment to the adopted budget that was approved by City Council during the year.

Actual revenues were above final budgeted amounts by $2,064,626. Property tax revenue exceeded budget projections by $241,531 due to better-than-anticipated assessed valuations on properties. Sales taxes also finished the year with $2,025,056 above budget projections.

Favorable sales tax receipts are a result of the implementation of Measure Z. The largest deficiencies came from miscellaneous revenue and investment earnings, which were $113,519 below original projections, and business license taxes.

Actual Variance from
Original Final Amounts Final Budget
Revenues:

Taxes and assessments 10,010,225 $ 10,010,225 $ 12,074,851 $ 2,064,626 $ Franchise fees 1,033,000 1,033,000 1,044,899 11,899
Intergovernmental revenue - - 151,875 151,875
Fees and services 666,920 946,920 1,235,634 288,714
Fines and forfeitures 25,200 25,200 17,510 (7,690)
Investment earnings 69,000 69,000 27,816 (41,184)
Miscellaneous revenue 489,000 489,000 416,665 (72,335)
Transfer in 235,000 235,000 235,000 -
Total revenues 12,528,345 $ 12,808,345 $ 15,204,250 $ 2,395,905 $

BUDGET AND ACTUAL
Budgeted Amounts

SUMMARY OF GENERAL FUND REVENUES
Fiscal Year Ended June 30, 2021
036
16 GENERAL FUND BUDGETARY HIGHLIGHTS (continued)
Expenses:

FY 2020-21 General Fund revenue reflects an amendment to the adopted budget that was approved by City Council during the year.

Actual expenses, prior to transfers, were $1,021,184 below the final adopted budget. The departments that were lower than budgeted were General government ($686,056), Public Safety ($778,845), and Planning and Building ($41,985). Public Works expenditures, however, finished the year $136,122 above the final adopted budget. This was primarily due to major Skypark repairs and library improvements.

Actual Variance from
Original Final Amounts Final Budget
Expenditures:

General governement 3,639,192 $ 3,669,192 $ 2,983,136 $ (686,056) $ Public Safety 5,736,599 5,806,599 5,027,754 (778,845)
Planning and Building 1,231,655 1,266,655 1,224,670 (41,985) Public Works 1,188,970 1,308,970 1,445,092 136,122
Capital outlay 2,000 2,000 83,460 81,460
Debt service 448,758 448,758 716,878 268,120
Transfers out - 300,000 771,773 471,773
Total expenditures 12,247,174 $ 12,802,174 $ 12,252,763 $ (549,411) $

BUDGET AND ACTUAL
Fiscal Year Ended June 30, 2021
Budgeted Amounts

SUMMARY OF GENERAL FUND EXPENDITURES
037
17 CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets: A recap of the City’s capital assets, net of accumulated depreciation, is shown in the table below. The City-wide increase (net of depreciation) is $173,879. The governmental activities had net capital asset additions of $536,835 with a current year depreciation of $1,444,690. Business-type activities had a net capital asset decrease of $362,956 with a current year depreciation expense of $760,601.

More detailed information about the City’s capital assets is presented in Note 5 to the financial statements.
2021 2020 2021 2020 2021 2020
Land $ 7,012 $ 7,012 529$ $ 529 $ 7,541 7,541$
Building and
improvements 3,560 3,600 1,201 1,322 4,761 4,922
Equipment 469 417 1,088 1,223 1,557 1,640
Infrastructure 19,902 18,887 7,229 7,409 27,131 26,296
Outfall Agreement - - 53 56 - 56
Construction
in progress 1,141 1,631 241 166 1,382 1,797
Total 32,084 $ 31,547$ $ 10,341 10,705$ 42,425$ 42,252$ Activities Activities Total
City of Scotts Valley
Capital Assets, Net of Depriation
(in thousands of dollars)
Governmental Business Type
038
18 CAPITAL ASSET AND DEBT ADMINISTRATION (continued)
Long-term Debt: A recap of the City’s long-term debt is shown below. Total long-term debt increased $777,390, or 1.7%. In the prior year, the City refinanced its obligations in three certificates of participation issuances (i.e., 1997-1 Refunding, 2003 Capital Improvement, and 2013 Refunding) by issuing a series of tax exempt and taxable lease revenue refunding bonds (PFA Series 2019A and 2019B) to take advantage of low interest rates and reduce its long-term debt service obligations. Long-term borrowing in bonds and installment notes increased by a net amount of $209,710. The net OPEB obligation increased in total $151,144, consisting of an increase in governmental activities of $120,355 and an increase in business activities of $30,789.

The net pension obligation increased by $777,390, consisting of increases in both governmental activities by $457,412 and business activities by $319,978. More detailed information about the City’s long-term debt is presented in Notes 6, 7, & 8 to the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETCOVID-19
As of June 30, 2021, the City was awarded an approximated $1.5 million in federal, state, and local relief funding, including $144,375 in Coronavirus Relief Fund under the Cares Act and $1,406,262 million under the American Rescue Plan Act (ARPA) funding in order to address the impact of the COVID-19 pandemic.

The FY 2021 budget was modified to increase revenue estimates for reimbursements related to the CZU fire for Skypark repairs and COVID-19.

The FY 2022 budget included modest increases to retirement, workers compensation, and contractual services. The budget focused on service and sustainability. While developing the budget, staff continued to be guided by the City Council to help the community and organization meet the health, economic, and social challenges due to the COVID‐19 pandemic.

Capital projects proposed in FY 2021-22 will enhance the safety and effectiveness of the City’s wastewater treatment plant, implement improvements to the City roadways and sidewalk systems, comply with storm drain regulations, implement improvements to City parks and buildings to better conform to the requirements of the Americans with Disabilities Act (ADA), 2021 2020 2021 2020 2021 2020
Certificates of
participation $ - $ - $ - $ - $ - $ -
Lease Revenue
refunding bonds 8,838 9,298 - 8,838 9,298
Pension Obligation Bonds 1,615 1,980 - 1,615 1,980
Installment note 70 75 - 70 75
Accrued compensated
absences 619 611 106 136 725 747
Net pension liability 15,451 14,292 4,452 4,133 19,903 18,425 Net OPEB liability 12,483 12,362 3,193 3,162 15,676 15,524 Total 39,076 $ $ 38,618 $ 7,751 $ 7,431 $ 46,827 $ 46,049 Activities Activities Total
City of Scotts Valley
Outstanding Debt
(in thousands of dollars)
Governmental Business Type
039
19 ECONOMIC FACTORS AND NEXT YEAR’S BUDGET (continued)
improve City library and government facilities, and improve the City’s information technology infrastructure.

Budget Outlook
The City’s financial outlook remains sound despite the difficulties brought on by the COVID-19 pandemic and subsequent public health emergency and economic crisis. Sales tax receipts returned to expected high levels and while volatile in economic downturns, continue to support City operations. While other revenue sources, including transient occupancy tax, have seen dramatic declines due to the impacts of the pandemic, the reduction strategies adopted by the City Council to align service levels with structural resources allows the City to look toward restoration and maintaining services in future periods as supporting resources return. Staff will continue to monitor the long-term budget situation, both locally and at the State level, to keep the City Council informed of critical economic events that may impact the sustainability of the City’s spending plan.

Further, staff will continue to assess the City’s operations and service delivery models to achieve efficiencies where possible. While in an enviable financial position considering the ongoing economic uncertainty, the City must continue to focus its efforts on priority fiscal initiatives such as adequate funding of infrastructure, thoughtful comprehensive planning, and optimization of business and residential development opportunities. Additionally, as new long-term needs are identified, the appropriate resources to meet those needs must also be identified.

Lastly, the City must maintain financial flexibility to ensure it is able to continue to quickly respond to changes in the economy and major revenue sources as evidenced by the current uncertain and unprecedented situation.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide the residents, taxpayers, customers, investors, and creditors of Scotts Valley with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional information, contact the City of Scotts Valley Finance Department, 1 Civic Center Drive, Scotts Valley, CA 95066.
040
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041
BASIC

FINANCIAL STATEMENTS
21 042
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GOVERNMENT-WIDE

FINANCIAL STATEMENTS
23 044
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City of Scotts Valley
Statement of Net Position
June 30, 2021
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and cash equivalents $ 15,970,724 $ 3,139,222 $ 19,109,946 Receivables 1,971,191 303,857 2,275,048
Total current assets 17,941,915 3,443,079 21,384,994
Noncurrent assets:

Advances to Redevelopment Successor Agency 4,146,928 1,600,000 5,746,928 Loans receivable 3,310,211 3,310,211 -
Restricted cash with fiscal agent 33,184 - 33,184
Capital assets:

Nondepreciable 8,153,128 770,551 8,923,679
Depreciable, net 23,930,372 9,571,001 33,501,373
Net capital assets 32,083,500 10,341,552 42,425,052
Total noncurrent assets 39,573,823 11,941,552 51,515,375 Total assets 57,515,738 15,384,631 72,900,369

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows from pension 3,165,207 813,380 3,978,587 Deferred outflows from OPEB 1,086,201 277,865 1,364,066 Deferred loss on refunding 761,768 761,768 -
Total deferred outflows of resources 5,013,176 1,091,245 6,104,421

LIABILITIES
Current liabilities:

Accounts payable 542,384 185,029 727,413
Accrued liabilities 53,946 7,160 61,106
Deposits payable 719,359 719,359 -
Unearned revenue 1,000 6,336 7,336
Long-term debt - current portion 1,086,420 58,459 1,144,879 Total current liabilities 2,403,109 256,984 2,660,093
Non-current liabilities:

Accrued interest 89,135 - 89,135
Long-term debt - noncurrent portion 10,055,190 47,248 10,102,438 Net pension liability 15,451,430 4,452,220 19,903,650
Net OPEB liability 12,482,727 3,193,256 15,675,983
Total noncurrent liabilities 38,078,482 7,692,724 45,771,206 Total liabilities 40,481,591 7,949,708 48,431,299

DEFERRED INFLOWS OF RESOURCES
Deferred inflows from pensions 725,695 204,653 930,348
Deferred inflows from OPEB 1,295,911 331,511 1,627,422
Total deferred inflows of resources 2,021,606 536,164 2,557,770

NET POSITION
Net investment in capital assets 23,937,163 10,341,552 34,278,715 Restricted for: -
Debt services 33,184 - 33,184
Low mod housing 2,661,760 2,661,760 -
Public safety 563,137 563,137 -
Public project 3,562,213 746,708 4,308,921
Parks & recreations 1,956,028 1,956,028 -
Others 1,006,405 1,006,405 -
Total Restricted: 9,782,727 746,708 10,529,435
Unrestricted (13,694,173) (3,098,256) (16,792,429)
$ 20,025,717 $ 7,990,004 $ 28,015,721
Primary Government
Total net position
See accompanying Notes to Basic Financial Statements
25 046
City of Scotts Valley
Statement of Activities
For the year ended June 30, 2021
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary Government:

Governmental activities:

General government 3,118,926 $ 99,843 $ - $ - $ 99,843 $ Public safety 108,240 5,520,484 - 267,145 375,385
Planning and building 1,200,696 1,388,104 - - 1,200,696 Public works 297,665 3,911,638 1,984,759 - 2,282,424
Interest - 336,292 - - -
Total governmental activities 1,706,444 14,275,444 1,984,759 267,145 3,958,348 Business-type activities:

Wastewater 3,205,744 2,925,142 - 116,195 3,041,337
Recreation programs 451,235 32,678 - - 32,678
Total business-type activities 3,656,979 2,957,820 - 116,195 3,074,015 Total primary government $ 4,664,264 17,932,423 $ 1,984,759 $ 383,340 $ 7,032,363 $ General Revenues and transfers:

Taxes:

Sales tax
Property tax
Franchise tax
Transient occupancy tax
Utility users' tax
Other taxes
Motor vehicle in-lieu
Investment earnings
Miscellaneous revenues
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements
26 047
Governmental Business-Type
Activities Activities Total
$ (3,019,083) $ (3,019,083) - $
(5,145,099) (5,145,099) -
(187,408) (187,408) -
(1,629,214) (1,629,214) -
(336,292) (336,292) -
(10,317,096) (10,317,096) -
(164,407) - (164,407)
(418,557) - (418,557)
(582,964) - (582,964)
$ (10,317,096) $ (582,964) $ (10,900,060)
6,666,056 6,666,056 -
2,142,631 2,142,631 -
1,044,899 1,044,899 -
1,261,100 1,261,100 -
828,420 828,420 -
517,171 517,171 -
1,266,561 1,266,561 -
34,203 3,493 37,696
569,302 569,302 -
(274,584) 274,584 -
14,055,759 278,077 14,333,836
3,738,663 (304,887) 3,433,776
16,287,054 8,294,891 24,581,945
$ 20,025,717 $ 7,990,004 $ 28,015,721
Net (Expense) Revenue
and Changes in Net Position
27 048
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28 049
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
29 050
City of Scotts Valley
Balance Sheet
Governmental Funds
June 30, 2021
Successor General Traffic Impact
General Housing Facilities Mitigation Lennar
Fund Agency Fund Fund Fund
ASSETS
Cash and investments 5,085,686 $ 2,025,698 $ 92,697 $ 665,289 $ 716,150 $ Receivables:

Due from other governments 1,876,445 - - - -
Other - - - - -
Due from other funds 338,932 - - - -
Advances to other funds 139,532 - - - -
Notes receivable - 650,000 - - -
Restricted cash with fiscal agent 33,184 - - - -
Total assets $ 2,675,698 7,473,779 $ 92,697 $ 665,289 $ 716,150 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 387,046 $ 13,938 $ -$ -$ -$
Accrued liabilities 53,259 - - - -
Deposits - - - 716,150 -
Unearned Revenues 1,000 - - - -
Due to other funds - - - - -
Advances from other funds - 139,532 - - -
Total liabilities 441,305 13,938 139,532 716,150 -
Fund balances:

Nonspendable 139,532 - - - -
Restricted 33,184 2,661,760 - 665,289 -
Assigned - - - - -
Unassigned 6,859,758 - (46,835) - -
Total fund balances 2,661,760 7,032,474 (46,835) 665,289 - Total liabilities, deferred inflows of
resources, and fund balances $ 2,675,698 7,473,779 $ 92,697 $ 665,289 $ 716,150 $ Special Revenue Funds
See accompanying Notes to Basic Financial Statements
30 051
Capital
Projects Fund
General Nonmajor
Capital Governmental
Improvements Funds Total
$ 6,380,075 966,626 $ 15,932,221 $
- - 1,876,445
94,746 - 94,746
- - 338,932
- - 139,532
550,000 - 1,200,000
- - 33,184
$ 7,024,821 966,626 $ 19,615,060 $
$ 105,588 35,812 $ 542,384 $
687 - 53,946
- - 716,150
- - 1,000
338,932 - 338,932
- - 139,532
445,207 35,812 1,791,944
- 139,532 -
930,814 5,491,680 9,782,727
1,330,504 - 1,330,504
(242,570) - 6,570,353
930,814 6,579,614 17,823,116
$ 966,626 $ 7,024,821 $ 19,615,060
31 052
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32 053
Total Fund Balances - Total Governmental Funds $ 17,823,116

Long-term advances to the Redevelopment Successor Agency are not current financial resources and, therefore, are offset in the Governmental Funds. 4,146,928

Long-term loans receivable are not current financial resources and, therefore, are offset in the Governmental Funds. 2,110,211
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:

Non-depreciable 8,153,128
Depreciable, net 23,930,372
Deferred outflows of resources reported on the Government-wide Statement of Net Position:

Deferred outflows - pension 3,165,207
Deferred outflows - OPEB 1,086,201
Deferred loss on refunding 761,768
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet. (89,135)

Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government-Wide Statement of Net Position. 35,294 Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet:

Net pension liability (15,451,430)
Net OPEB liability (12,482,727)
Long term liabilities - due within one year (1,086,420) Long term liabilities - due in more than one year (10,055,190)

Deferred inflows of resources reported on the Government-wide Statement of Net Position:

Deferred pension inflows (725,695)
Deferred OPEB inflows (1,295,911)
Net Position of Governmental Activities $ 20,025,717
City of Scotts Valley
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
Amounts reported for governmental activities in the Statement of Net Position See accompanying Notes to Basic Financial Statements
33 054
City of Scotts Valley
Statement of Revenues, Expenditures and Changes in Fund Balances Govermental Funds
For the year ended June 30, 2021
Successor General Traffic Impact
General Housing Facilities Mitigation Lennar
Fund Agency Fund Fund Fund Fund
REVENUES:

Taxes and assessments $ 13,119,750 $ - $ - $ - $ -
Intergovernmental revenues 151,875 - - - -
Fees and services 1,235,634 118,240 8,904 76,474 -
Fines and forfeitures 17,510 - - - -
Contributions from non-government - - - - -
Facility and building rental 155,255 - - - -
Investment earnings 27,816 331 74 650 -
Miscellaneous revenues 416,665 648 - - -
Total revenues 14,969,250 274,474 8,978 77,124 -
EXPENDITURES:

Current:

General government 2,983,136 - 139 - -
Public safety 5,027,754 - - - -
Planning and building 1,224,670 96,992 - - -
Public works 1,445,092 - 54,715 - -
Capital outlay 83,460 - - - -
Debt service:

Principal 450,000 - - - -
Interest and fiscal charges 266,878 - - - -
Total expenditures 11,480,990 96,992 139 54,715 -

REVENUES OVER (UNDER)
EXPENDITURES 3,488,260 177,482 8,839 22,409 -
OTHER FINANCING SOURCES (USES):

Transfers in 235,000 - - - -
Transfers out (771,773) - - - -
Total other financing sources (uses) (536,773) - - - -
Net change in fund balances 2,951,487 177,482 8,839 22,409 - FUND BALANCES (DEFICITS):

Beginning of year 4,080,987 1,589,318 (55,674) 642,880 - Prior period adjustments 894,960 - - - -
Beginning of year, as restated 4,080,987 2,484,278 (55,674) 642,880 - End of year $ 2,661,760 7,032,474 $ (46,835) $ 665,289 $ - $ Special Revenue Funds
See accompanying Notes to Basic Financial Statements
34 055
Capital
Projects Fund
General Capital Nonmajor
Improvements Governmental
Fund Funds Total
$ - $ 1,001,235 $ 14,120,985
- 1,505,503 1,657,378
79,304 249,936 1,768,492
- 17,510 -
- 1,653 1,653
- 155,255 -
952 4,333 34,156
134,634 47,164 599,111
214,890 2,809,824 18,354,540
- 2,983,275 -
- 2,354 5,030,108
- 14,869 1,336,531
70,865 375,575 1,946,247
209,803 1,767,544 2,060,807
- 365,000 815,000
- 80,018 346,896
280,668 2,605,360 14,518,864
(65,778) 204,464 3,835,676
- 497,189 732,189
- (235,000) (1,006,773)
- 262,189 (274,584)
(65,778) 466,653 3,561,092
996,592 6,112,961 13,367,064
- 894,960 -
996,592 6,112,961 14,262,024
$ 930,814 $ 6,579,614 $ 17,823,116
35 056
Net Change in Fund Balances - Total Governmental Funds $ 3,561,092 Governmental funds reported asset acquisitions as expenditures. However, in the GovernmentWide Statement of Activities, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period. 1,983,525
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds. (1,446,690) Accrued compensated leave payable was an expenditure in governmental funds, but the accrued payable increased compensated leave liabilities in the Government-Wide Statement of Net Position. (7,157)
Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. 815,000 Amortization of debt issuance premium and refunding loss, which were not recorded in governmental funds. (18,855)
Pension expenses and other postemployment benefits (OPEB) were reported in the GovernmentWide Statement of Activities, but did not require the use of current financial resources. Therefore, the increase or decrease in the net pension liability and other postemployement benefits liability were not reported as an expenditure or (credit) in governmental funds:

Deferred outflows - pension 53,391
Deferred outflows - OPEB 136,954
Net pension liability (1,159,165)
Net OPEB liability (120,355)
Deferred inflows - pension 218,839
Deferred inflows - OPEB (242,261)
Accrual of 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. Therefore, the increase in accrued interest on long-term debt was not reported as an expenditures in the governmental funds. 29,459
Repayment of long-term loans receivable is reported as income in governmental funds, but the repayment reduces long-term assets in the Statement of Net Position. (65,897) An internal service fund is used by management to charge the costs of dental insurance to individuals fund. The net expense of this internal service fund is reported with governmental activities
783
Change in Net Position of Governmental Activities $ 3,738,663 City of Scotts Valley
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2021
Amounts reported for governmental activities in the Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
36 057
City of Scotts Valley
Statement of Net Position
Proprietary Funds
June 30, 2021
Internal
Recreation Wastewater Service
Fund Fund Total Fund
ASSETS
Current assets:

Cash and investments $ 220 $ 3,139,002 $ 3,139,222 $ 38,503 Receivables:

Sewer fees - 162,907 162,907 -
Other 9,989 130,961 140,950 -
Advances to Successor Agency 1,600,000 - 1,600,000 -
Total current assets 10,209 5,032,870 5,043,079 38,503
Noncurrent assets:

Capital assets:

Nondepreciable - 770,551 770,551 -
Depreciable, net 9,571,001 - 9,571,001 -
Total capital assets - 10,341,552 10,341,552 -
Total noncurrent assets 10,341,552 - 10,341,552 -
Total assets 15,374,422 10,209 15,384,631 38,503

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 436,448 376,932 813,380 - Deferred outflows related to OPEB 126,302 151,563 277,865 - Total deferred outflows of resources 588,011 503,234 1,091,245 -

LIABILITIES
Current liabilities:

Accounts payable 1,257 183,772 185,029 3,209
Accrued liabilities 846 6,314 7,160 -
Compensated absences - current portion 46,183 12,276 58,459 - Unearned revenues 6,336 - 6,336 -
Total current liabilities 236,269 20,715 256,984 3,209
Noncurrent liabilities:

Compensated absences - noncurrent portion 9,474 37,774 47,248 Net pension liability 2,063,224 2,388,996 4,452,220 -
Net OPEB liability 1,451,480 1,741,776 3,193,256 -
Total noncurrent liabilities 3,524,178 4,168,546 7,692,724 - Total liabilities 3,544,893 4,404,815 7,949,708 3,209

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 109,814 94,839 204,653 - Deferred inflows related to OPEB 150,686 180,825 331,511 - Total deferred inflows of resources 290,639 245,525 536,164 -

NET POSITION
Net investment in capital assets 10,341,552 - 10,341,552 - Restricted for capital improvements 746,708 - 746,708 - Unrestricted (3,276,975) 178,719 (3,098,256) 35,294
Total net position $ 11,266,979 (3,276,975) $ 7,990,004 $ 35,294 $ Enterprise Funds
See accompanying Notes to Basic Financial Statements
37 058
City of Scotts Valley
Statement of Revenues, Expenditures and Changes in Net Position Proprietary Funds
For the year ended June 30, 2021
Internal
Recreation Wastewater Service
Fund Fund Total Fund
OPERATING REVENUES:

Fees and services 32,678 $ 2,925,142 $ 2,957,820 $ 46,698 $ Total operating revenues 2,925,142 32,678 2,957,820 46,698 OPERATING EXPENSES:

Salaries 77,300 504,777 582,077 -
Taxes and benefits 255,938 494,366 750,304 -
Maintenance and operations 14,848 813,361 828,209 65
Advertising - - - -
Professional and contractual services 39 154,247 154,286 - Utilities and communications 5,890 387,212 393,102 -
Insurance and bonds 97,220 91,180 188,400 45,898
Depreciation - 760,601 760,601 -
Total operating expenses 3,205,744 451,235 3,656,979 45,963 OPERATING INCOME (LOSS) (280,602) (418,557) (699,159) 735

NONOPERATING REVENUE (EXPENSES)
Interest income 1,621 1,872 3,493 48
Total nonoperating revenues (expenses) 1,872 1,621 3,493 48 OTHER FINANCING SOURCES (USES):

Capital contributions - 116,195 116,195 -
Transfers in 354,905 - 354,905 -
Transfers out (29,981) (50,340) (80,321) -
Total contributions and transfers 65,855 324,924 390,779 - Change in net position (92,012) (212,875) 783 (304,887) NET POSITION:

Beginning of year (3,184,963) 11,479,854 8,294,891 34,511 End of year $ (3,276,975) $ 11,266,979 $ 7,990,004 $ 35,294 Enterprise Funds
See accompanying Notes to Basic Financial Statements
38 059
City of Scotts Valley
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
Internal
Recreation Wastewater Service
Fund Fund Total Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers 27,566 $ 3,618,954 $ 3,646,520 $ 46,698 $ Payments for goods and services (133,339) (1,415,058) (1,548,397) (43,389) Payments to employees (220,772) (860,077) (1,080,849) - Net cash provided by (used in) operating activities 1,343,819 (326,545) 1,017,274 3,309

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash receipts from other funds 354,905 - 354,905 -
Cash disbursements to other funds (29,981) (50,339) (80,320) - Net cash provided by (used in)
noncapital financing activities (50,339) 324,924 274,585 -

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Cash receipts of connection and standby fees - 116,195 116,195 - Acquisition of capital assets - (397,645) (397,645) -
Net cash provided by (used in)
capital and related financing activities (281,450) - (281,450) - CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 1,621 1,871 3,492 48
Net cash provided by (used in) investing activities 1,871 1,621 3,492 48 Net Cash Flows 1,013,901 - 1,013,901 3,357
CASH AND CASH EQUIVALENTS - Beginning of Year 2,125,101 220 2,125,321 35,146 CASH AND CASH EQUIVALENTS - End of Year $ 3,139,002 220 $ 3,139,222 $ 38,503 $

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED IN)

OPERATING ACTIVITIES
Operating income (loss) (418,557) $ (280,602) $ (699,159) $ 735 $ Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Depreciation and amortization - 760,601 760,601 -
Changes in assets and liabilities:
(Increase) decrease in receivables 25,320 693,812 719,132 - (Increase) decrease in deferred outflows of resources 8,022 25,496 33,518 - Increase (decrease) in accounts payable (3,182) 53,981 50,799 2,574 Increase (decrease) in accrued liabilities (12,160) (23,039) (35,199) - Increase (decrease) in compensated absences (49,728) 19,428 (30,300) - Increase (decrease) in unearned revenues (30,432) (30,432) - - Increase (decrease) in net pension liability 184,710 134,779 319,489 - Increase (decrease) in net OPEB liability 13,995 16,794 30,789 - Increase (decrease) in deferred inflows of resources (44,533) (57,431) (101,964) - Net cash provided by (used in) operating activities $ (326,545) $ 1,343,819 $ 1,017,274 $ 3,309 Enterprise Funds
See accompanying Notes to Basic Financial Statements
39 060
City of Scotts Valley
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
Successor Agency
Private Purpose Custodial
Trust Fund Funds
ASSETS
Cash and investments held for others, restricted $ 1,342,657 $ 684,511 Cash and investments held in
accordance with bond indentures, restricted 281 358,180 Receivabes - 5,117
Capital assets:

Nondepreciable 5,386,012 -
Depreciable, net 5,164,588 -
Total assets 11,893,538 1,047,808

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding of debt 982,237 -
Total deferred outflows of resources 982,237 -

LIABILITIES
Accrued interest payable 542,657 -
Long-term debt:

Due in one year 545,000 -
Due in more than one year 16,278,188 -
Total liabilities 17,365,845 -
NET POSITION:

Held in trust for dissolution of RDA (4,490,070) -
Held for bond holders 1,047,808 -
Total net position $ (4,490,070) 1,047,808
See accompanying Notes to Basic Financial Statements
40 061
City of Scotts Valley
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2021
Successor Agency
Private Purpose Custodial
Trust Fund Funds
ADDITIONS:

Redevelopment Property Tax Trust Fund $ 2,412,310 $ -
Assessment revenue 423,434 -
Deposits received - 12,650
Total additions 436,084 2,412,310 $

DEDUCTIONS
Administrative expenses 70,111 15,729
Bond payments 401,965 -
Deposit payments 68,555 -
Enforceable obligations of former Redevelopment Agency - 340,805 Depreciation 171,995 -
Interest expense 421,610 -
Amortization expense 51,697 -
Total deductions 486,249 1,056,218
Change in fiduciary net position (50,165) 1,356,092 $
NET POSITION:

Beginning of year, as restated (5,846,162) 1,097,973
End of year $ (4,490,070) 1,047,808
See accompanying Notes to Basic Financial Statements
41 062
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42 063
43 NOTES TO BASIC

FINANCIAL STATEMENTS
064
44 This page intentionally left blank
065
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
45 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Scotts Valley, California, (City) have been prepared in conformity with accounting principles generally accepted in the Unites 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 principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Scotts Valley was incorporated in 1966 as a general law city of the State of California, and is governed by an elected five member City Council. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are in substance part of the City’s operations and data from these units are combined with data of the City. The City has no discretely presented component units. The following entity is reported as a blended component unit:

The Scotts Valley Public Financing Authority (Authority) was established in April 1989 by the City to facilitate financing for the City. Although the Authority is a separate legal entity from the City, it is reported as if it were part of the primary government because members of the City Council also serve as the Authority’s governing board and because the Authority’s sole purpose is to be a financing entity for the City. The Authority does not issue separate financial statements.

B. Basis of 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 with its own self-balancing set of accounts that comprise its assets, deferred outflows of resources, liabilities, fund equity, revenues and expenditures or expenses. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means to which spending activities are controlled.

Government-Wide Financial Statements
The City’s government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City accompanies by a total column.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred inflows/outflows of resources, 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 liabilities are incurred. 066
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
46 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Government-Wide Financial Statements, Continued
Certain types of transactions reported as program revenues for the City are reported in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain limitations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except for those representing balances between the governmental activities and business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however those transactions between governmental and businesstype activities have not been eliminated. The following interfund activities have been eliminated:
 Due to/from other funds
 Advances to/from other funds
 Transfer in/out
The City applies all applicable GASB pronouncements including all NCGA Statements and Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. 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 meet specific qualifications.

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 sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present 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.

The City reports the following major governmental funds:

The General Fund – is the City’s primary operating fund. It accounts for all financial resources of the general government.

The Successor Housing Agency Fund – is used to account for the affordable housing funds of the former Scotts Valley Redevelopment Agency.

The General Facilities Fund – is used to account for the impact fees imposed on new development to mitigate impacts on the City’s general facilities (i.e. City Hall, Corporate Yard, etc.) 067
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
47 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements, Continued
The Traffic Mitigation Fund – is used to account for the impact fees imposed on new development to mitigate impacts on the City’s streets.

The Lennar Fund – is used to account for funds paid by a developer to be used for parks and recreational opportunities in the City at the sole discretion of City Council.

The General Capital Improvements Fund – is used to account for the City’s major capital projects.

Revenues are recognized when measurable and available. Sales and use tax, transient occupancy tax, franchise tax, interest, certain state and federal grants, and charges for services are accrued when their receipt occurs within 90 days of fiscal year end. Property taxes are accrued when their receipt occurs within 60 days of fiscal year end. The primary revenue sources that have been treated as susceptible to accrual by the City are property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, franchise taxes, etc.), grant revenues and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

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 Net Position present increases (revenues) and decreases (expenses) in total net position.

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 expense.

The City reports the following proprietary funds as major:

The Recreation Fund accounts for the operations of the City’s recreation program services.

The Wastewater Fund accounts for the operations of the City’s wastewater treatment and distribution system.
068
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
48 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has one private-purpose trust fund. The private-purpose trust fund accounts 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).

Fiduciary funds are accounted for using the accrual basis of accounting. The City reports the following fiduciary funds:

The Private-Purpose Trust Fund – the City maintains one private purpose trust fund to account for activities of the Successor Agency to the former Redevelopment Agency.

Custodial funds – three agency funds account for: (1) receipt of special taxes and assessments used to pay municipal and interest on two assessment district bonds with no direct City liability, and (2) receipt and disbursement of monies held in general trust.

C. Cash, Cash Equivalents, and Investments
The City pools cash and investments of all funds, except amounts held by fiscal agents. The Council invests on behalf of most funds of the City in accordance with the California State Government Code and the City’s investment policy.

Investments are reported in the accompanying balance sheet at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Cash deposits are reported at carrying amount which reasonably estimates fair value. Managed funds not listed on an established market are reported at the estimated fair value as determined by the respective fund managers based on quoted sales prices of the underlying securities.

Participant’s equity in an investment pool is determined by the dollar amount of participant deposits, adjusted for withdrawals and distributed investment income. Investment income is determined on an amortized cost basis. Amortized premiums and accreted discounts, accrued interest, and realized gains and losses, net of expenses, are apportioned to pool participants annually. During the fiscal year ended June 30, 2021, the City had not entered into any legally binding guarantees to support the participant equity in the investment pool.
069
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
49 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Cash, Cash Equivalents, and Investments, Continued
The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.

In accordance with GASB Statement No. 40, Deposit, and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:
 Interest Rate Risk
 Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations 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.

D. Unbilled Receivables
The City bills wastewater service every two months. Whenever the fiscal year ending date does not coincide with a billing month, the City accrues unbilled wastewater service fees.

E. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $10,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.

Donated capital assets are recorded at acquisition value at the date of donation. 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.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant, equipment, and infrastructure of the City are depreciated using the straight-line method over the following estimated useful lives:

Asset Years
Equipment 5 - 10
Furniture and Fixtures 5 - 10
Software 5 - 7
Building and Improvements 40
Infrastructure 20 - 75
070
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.

Grants and entitlements from federal and state projects and programs received before eligibility requirements are met are recorded as unearned revenue.

G. Compensated Absences
Accumulated vested unused employee vacation and similar compensatory leave balances are recognized as liabilities of the City since the employees’ entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement. Liquidation of the liability is recorded in the Statement of Net Position based upon the governmental and/or business-type activity to which each employee is allocated.

Sick leave benefits are accumulated only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payment, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.

The City’s proprietary funds accrue all leave benefits relating to their operations. A current liability is accrued in the governmental funds for material leave benefits due on demand to governmental fund employees that have terminated prior to fiscal year end. Noncurrent amounts will be recorded as expenditures in the governmental funds in the year in which they are paid or become due on demand to terminated employees.

The City’s employees earn vacation leave (varying depending on years of service) based on days employed. Upon retirement or early termination, payment of accumulated vacation may not exceed that which can be accumulated within state limits. Unused sick leave, based on days employed, can be accumulated up to certain limits. Upon retirement or termination, employees will be paid within the maximum hours of sick pay allowed.

H. Long-Term Debt
Government-Wide Financial Statements – Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities.

Bond premiums and discounts are amortized over the life of the bonds using the effective interest method.

Bonds payable is reported net of the applicable bond premium or discount. Bond issuance costs, except any portion related to prepaid insurance costs, are recognized as an expense in the period incurred.

Fund Financial Statements – The governmental fund financial statements do not present long-term debt.

As such, long-term debt is shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
071
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Long-Term Debt, Continued
Bond premiums and discounts are recognized during the current period as other financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Bond proceeds are reported as other financing sources.

Proprietary Fund and Fiduciary Fund Financial Statements use the same principles as those used in the Government-Wide Financial Statements.

Government-Wide Financial Statements – Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities.

Bond premiums and discounts are amortized over the life of the bonds using the effective interest method.

Fund Financial Statements – The governmental fund financial statements do not present long-term debt.

As such, long-term debt is shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

Bond premiums and discounts are recognized during the current period as other financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Bond proceeds are reported as other financing sources.

Proprietary Fund and Fiduciary Fund Financial Statements use the same principles as those used in the Government-Wide Financial Statements.

I. Property Taxes
Santa Cruz County (County) is responsible for the assessment, collection, and apportionment of property taxes for all taxing jurisdictions. Secured property taxes attach as an enforceable lien on property as of July 1. Taxes are payable in two installments on November 1 and February 1. Unsecured property taxes are payable in one installment on or before July 1.

Property taxes are accounted for in the General Fund and the Private-Purpose Trust Fund (formally the City’s Redevelopment Agency). Property tax revenues are recognized when they become measurable and available to finance current liabilities.

The City is permitted by Article XIIIA of the State of California Constitution (Proposition 13) to levy a maximum tax of 1% of assessed value, plus other increases as approved by the voters. 072
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued J. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position (balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the Statement of Net Position (balance sheet) reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

K. Encumbrances
Encumbrance accounting is employed by the City in all of its budgeted governmental funds. In doing so, purchase orders, contracts, and other commitments for the expenditure of monies are recorded to reserve that portion of the applicable appropriation.

L. Net Position and Fund Balance
Government-Wide Financial Statements
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” Fund Financial Statements
In the fund financial statements, governmental funds report fund balance as nonspendable restricted, committed, assigned, or assigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.

Nonspendable – Amounts that are not in spendable form (such as inventory) or are required either legally or contractually to be maintained intact.

Restricted – Amounts with constraints placed on their use that are either: (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional or enabling legislation.
073
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Net Position and Fund Balance, Continued
Fund Financial Statements, Continued
Committed – Amounts constrained to specific purposes by the City itself, using the City’s highest level of decision-making authority (the City Council). To be reported as committed, amounts cannot be used for any other purpose unless the City takes the same highest level action to remove or change the constraint. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.

Assigned - Amounts the City intends to use for a specific purpose. Intent can be expressed by the City at either the highest level of decision-making authority or by an official or body to which the City delegates the authority. This is also the classification for residual funds in the City’s special revenue funds.

Unassigned - The residual classification for the City’s General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.

The City Council establishes, modifiers, or rescinds fund balance commitments and assignments by action, which includes passage of a resolution adopting the budget and appropriating revenue for the fiscal year.

Net Position and Fund Balance Flow Assumption
When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the City’s policy is to use restricted resources first.

When an expenditure is incurred for which both restricted and unrestricted (committed, assigned, or unassigned) resources are available, it is the City’s policy to use restricted amounts first. If unrestricted fund balances are available, the City considers amounts to have been spent first out of committed, then assigned, and finally unassigned funds, as needed.

M. Use of Estimates
The preparation of the Basic Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amounts of revenues and expenses. Actual results could differ from these estimates and assumptions.
074
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued N. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The net pension liability is liquidated primarily based on the allocation of current employees' charged to governmental and/or business-type activities.

O. Other Post Employment Health Care 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 City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. The net OPEB liability is liquidated based on the allocation of current employees' charged to governmental and/or business-type activities. For this report, the following timeframes are used:

Valuation Date June 30, 2020
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
P. New Accounting Pronouncements
In 2021, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
 GASB Statement No. 84 - Fiduciary Activities – The objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. Management has implemented this Statement in fiscal year 2021.
 GASB Statement No. 90 – Majority Equity Interests – The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legal separate organization should be reported as an investment if a government’s holding of the equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. This Statement is not applicable to the City. 075
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED N. New Accounting Pronouncements, Continued
 GASB Statement No. 93 – Interbank Offered Rates (except LIBOR removal and lease modifications) – Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR) –most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate. GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, as amended, requires a government to terminate hedge accounting when it renegotiates or amends a critical term of a hedging derivative instrument, such as the reference rate of a hedging derivative instrument’s variable payment. In addition, in accordance with GASB Statement No. 87, Leases, as amended, replacement of the rate on which variable payments depend in a lease contract would require a government to apply the provisions for lease modifications, including remeasurement of the lease liability or lease receivable. The objective of GASB Statement No. 93 is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. This Statement is not applicable to the City.
 GASB Statement No. 97 - Certain Component Unit Criteria, And Accounting And Financial Reporting For Internal Revenue Code Section 457 Deferred Compensation Plans—an Amendment Of GASB Statements No. 14 And No. 84, And A Supersession Of GASB Statement No. 32 - The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans.  GASB Statement No. 98 - The Annual Comprehensive Financial Report. Statement No. 98 establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Management has implemented this Statement on its financial statements. Management has implemented this Statement in fiscal year 2021.
076
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
56 2. CASH AND INVESTMENTS
Cash, cash equivalents, and investments are reported in the accompanying basic financial statements as follows:

A. Summary of Cash and Investments
Cash, cash equivalents, and investments as of June 30, 2021, consist of the following:

B. Deposits
The carrying amount of the City’s cash deposit was $1,724,967 at June 30, 2021.

Bank balances before reconciling items were a positive amount of $1,846,553 at June 30, 2021. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

The California Government Code (Code) Section 53652 requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. The 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 deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

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 is allocated quarterly to each fund based on its pro-rata ownership of the pool.

Fund Financials
Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments $ 15,970,723 $ 3,139,222 $ 2,027,168 $ 21,137,113 Cash and investments
with fiscal agents 33,184 - 358,461 391,645
Total $ 16,003,907 $ 3,139,222 $ 2,385,629 $ 21,528,758 Government-Wide Statement of Net Position
Pooled deposits $ 1,724,967
Pooled Investments:

Local Agency Investment Fund (LAIF) 16,562,038
Money Market 2,850,108
Total cash and deposits 21,137,113
Investments with Fiscal Agents and Trustees 391,645
Total cash and investments $ 21,528,758
077
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
57 2. CASH AND INVESTMENTS, Continued
C. Investments
Under the provisions of the City’s investment policy, and in accordance with the Code, the following investments are authorized:

The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value.

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2021, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

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

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

As of June 30, 2021, the City had $16,562,038 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.37% in the previous year. The LAIF fair value factor of 1.00008297 was used to calculate the fair value of the investments in LAIF.

Maximum Maximum
Maximum Percentage of Investment in
Maturity Portfolio One Issuer
U.S. Treasury Securities 5 years None None
U.S. Agency Securities 5 years None None
Certificates of Deposit 5 years 30% None
Bankers' Acceptances 180 days 40% None
Repurchase Agreements 30 days 15% None
Corprate Medium Term Notes 5 years 30% None
U.S. Agency Mortgage Pass Through Securities 5 years 15% None Money Market Mutual Funds N/A 15% None
Commercial Paper 270 days 30% None
Local Agency Investment Fund (LAIF) N/A None None
Investment Fund of California (CalTRUST) N/A 30% None
Demand Deposits N/A None None
Authorized Investment Type
078
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
58 2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures
Interest Risk: Interest rate risk is the market value fluctuation due to overall changes in the interest rates.

As a means of limiting its exposure to fair value losses arising from changes in interest rates, the City’s investment policy limits investments to a maximum maturity of five years. As of June 30, 2021, investment maturities, other than investments of debt proceeds held by bond trustees, were as follows:

Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk.

E. Investment Valuation
Investments (except for money market accounts, time deposits, and commercial paper) are measured at fair value on a recurring basis. Recurring fair value measurements, are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The City held no investments subject to the levelling disclosure as of June 30, 2021.

3. INTERFUND TRANSACTIONS
A. Due To/From Other Funds
At June 30, 2021, the City’s Due To/From Other Fund balances were comprised of the following:

Investment Type Total
12 Months
or Less
13 - 24
Months
More than
24 Months
LAIF 16,562,038 $ 16,562,038 $ - $ $ -
Money Market 2,850,108 2,850,108 - -
Total $ 19,412,146 19,412,146 $ - $ - $
Remaining Maturity (in Months)
Nonmajor
Governmental
Due To Funds Total
General Fund $ 338,932 $ 338,932
Total $ 338,932 $ 338,932
Due From
079
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
59 3. INTERFUND TRANSACTIONS, Continued
B. Transfers
The City had the following transfers between funds during the year ended June 30, 2021:

Transfers from the General Fund to the Recreation Enterprise Fund were for covering operating costs and negative cash balances. Transfers from the General Fund to the nonmajor governmental funds were primarily for debt service and negative cash balance. Transfers from the nonmajor governmental funds to the General Fund were for street projects.

C. Advances To/From Other Funds
At June 30, 2021, the City had the following interfund advances that were not expected to be repaid in the next fiscal year.

The advance from the General Fund to the General Facilities Fund will be repaid with future impact fee revenues. The funds were loaned for the construction of the current City Hall.

Nonmajor Recreation
General Governmental Enterprise
Transfers Out Fund Funds Fund Total
General Fund - $ 416,868 $ 354,905 $ 771,773 $
Nonmajor Governmental Funds 235,000 - - 235,000
Recreation Enterprise Fund - 29,981 - 29,981
Wastewater Enterprise Fund - 50,340 - 50,340
Total 235,000 $ 497,189 $ 354,905 $ 1,087,094 $
Transfers In
General
Facilities
Advance From Fund Total
General Fund $ 139,532 $ 139,532
Total $ 139,532 $ 139,532
Advance To
080
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
60 4. LOANS RECEIVABLE AND ADVANCES
The City’s loans and advances receivable were comprised of the following as of June 30, 2021.

A. Advances to Successor Agency
General Fund and Successor Housing Agency
As of June 30, 2021, advances to the Redevelopment Successor Agency consist of loans from the City’s General Fund in the amount of $3,332,365 and the former Redevelopment Agency Affordable Housing Fund, now the Successor Housing Agency, in the amount of $814,563. The advance from the General Fund was for start-up expenses, initial formation of the Redevelopment Agency, and improvement projects.

The advance from the former Affordable Housing Fund was for the repayment to the State for the Education Augmentation Fund (ERAF) and Supplemental Educational Revenue Augmentation Fund (SERAF). The advance will be repaid with tax increment revenues allocated to the Successor Agency Private Purpose Trust Fund.

Advance from the Wastewater Fund
Advance to Redevelopment Successor Agency is from the City’s Wastewater Fund to the former Redevelopment Agency for the purchase of property. The advance will be repaid with tax increment revenues allocated to the Successor Agency Private Purpose Trust Fund. As of June 30, 2021, the balance of the advance was $1,600,000.

The total of all advances to the Successor Agency as of June 30, 2021 was $5,746,928.

Balance as of Current
Description June 30, 2021 Portion
Advances to Successor Agency:

Advance from General Fund $ 3,332,365 $ -
Advance from Successor Agency Housing Fund 814,563 -
Advance from Wastewater Fund 1,600,000 -
Advances to Successor Agency subtotal 5,746,928 -
Loans Receivable:

Mid-Penninsula Housing - 1,034,966
Silent Second Loan Program 525,245 -
MP Scotts Valley Associates 400,000 -
Habitat for Humanity 150,000 -
Scotts Valley Housing, LLC 650,000 -
Four Points Hotel (CDBG Funds) 550,000 -
Loans receivable subtotal 3,310,211 -
Total 9,057,139 $ - $
081
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
61 4. LOANS RECEIVABLE AND ADVANCES, Continued
B. Loans and Notes Receivable
The City’s loans and notes receivable as of June 30, 2021 are as follows:

Due from a California Limited Partnership with simple interest at 3%, all due and payable by November 22, 2026. Funds were loaned to facilitate the construction of 46 affordable housing units. This receivable is recorded in the Successor Housing Agency Fund. The loan is secured by a deed of trust on the housing units. As of June 30, 2021, the outstanding loan balance was $1,034,966.

Due from nine parties together with contingent interest calculated as an amount equal to 10% of appreciation of the residential properties purchased by the various parties, all due and payable: upon sale or transfer, upon default, upon cash-out refinancing of the superior "first" or "second" loan, or upon the date the "first" note becomes due and payable. Funds were loaned to facilitate the purchase of affordable housing through the Agency’s "silent second" loan program. This receivable is recorded in the Successor Housing Agency Fund. The loans are secured by deeds of trust on the respective properties. As of June 30, 2021, the outstanding loan balance was $525,245.

Due from a California Limited Partnership with interest at the "applicable federal rate" as of the date of the Note, all due and payable by September 15, 2054. Funds were loaned under the HOME Investment Partnerships Program to facilitate the construction of residential units that are occupied by and affordable to Very-Low Income Persons for the term of the loan. The loan is administered by the City as set forth by federal regulations dated April 30, 1999 between the City and the State of California, by and through the Department of Housing and Community Development. The loan is secured by a deed of trust on the housing units. As of June 30, 2021, the outstanding loan balance was $400,000.

Due from a California Non-profit Public Benefit Corporation with simple interest at the Local Agency Investment Fund (LAIF) rate, due and payable at maturity. Loan matures and is fully due and payable five years from the date the third unit on the Property is issued a certificate of occupancy or no later than 1 0 years from the date of the Promissory Note. Funds were loaned to facilitate the construction of three Assisted Units, in accordance with Agency requirements related to Low and Moderate Income Housing Trust Funds. This receivable is recorded in the Successor Housing Agency Fund. As of June 30, 2021, the outstanding loan balance was $150,000.

Due from a California Limited Liability Company with simple interest at 3.25% per annum on the outstanding balance with quarterly installments until paid, on or before September 1, 2027 or upon the sale of secured property. The loan was a result of the sale of City property and is secured by a deed of trust. As of June 30, 2021, the outstanding loan balance was $650,000.

Due from a California Limited Liability Company with simple interest at 3.25% per annum, due and payable under the terms of a repayment agreements. Funds were loaned with Community Development Block Grant (CDBG) funds. The loan is secured by a deed of trust on commercial property. As of June 30, 2020, the outstanding loan balance was $550,000. The CDBG funds must be paid back by the City either through a restructuring of the loan or a payment plan to be determined by the City and HUD.

The total balance of all loan receivable as of June 30, 2021 was $3,310,211. 082
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
62 5. CAPITAL ASSETS
A. Government-Wide Financial Statements
The City’s capital asset activity for the year ended June 30, 2021 was as follows.

June 30, 2020 June 30, 2021
Balance Additions Reductions Balance
Governmental activities
Capital assets, not being depreciated
Land $ 7,011,920 $ - $ - $ 7,011,920
Construction in progress 1,631,442 1,427,727 (1,917,961) 1,141,208 Total capital assets, not being depreciated 8,643,362 1,427,727 (1,917,961) 8,153,128 Capital assets, being depreciated
Buildings 5,984,770 92,162 - 6,076,932
Machinery and equipment 3,630,286 264,051 (206,125) 3,688,212 Infrastructure 43,555,490 2,131,675 45,687,165 -
Total capital assets, being depreciated 53,170,546 2,487,888 (206,125) 55,452,309 Less accumulated depreciation for:

Buildings (2,384,552) (132,610) - (2,517,162)
Machinery and equipment (3,213,108) (198,596) 191,996 (3,219,708) Infrastructure (24,669,583) (1,115,484) (25,785,067) -
Total accumulated depreciation (30,267,243) (1,446,690) 191,996 (31,521,937) Total capital assets, being depreciated, net 22,903,303 1,041,198 (14,129) 23,930,372 Governmental activities capital assets, net $ 31,546,665 $ 2,468,925 $ (1,932,090) $ 32,083,500 Business-type activities
Capital assets, not being depreciated
Land $ 529,416 $ - $ - $ 529,416
Construction in progress 165,519 75,616 - 241,135
Total capital assets, not being depreciated 694,935 75,616 - 770,551 Capital assets, being depreciated
Buildings 5,287,273 - - 5,287,273
Machinery and equipment 6,974,708 322,029 - 7,296,737
Infrastructure 23,112,053 - 23,112,053 -
Outfall agreement 178,000 - - 178,000
Total capital assets, being depreciated 35,552,034 322,029 35,874,063 - Less accumulated depreciation for:

Buildings (3,966,031) (120,194) - (4,086,225)
Machinery and equipment (5,752,282) (456,864) - (6,209,146) Infrastructure (15,702,504) (180,576) (15,883,080) -
Outfall agreement (121,644) (2,967) - (124,611)
Total accumulated depreciation (25,542,461) (760,601) (26,303,062) - Total capital assets, being depreciated, net 10,009,573 (438,572) - 9,571,001 Business-type activities capital assets, net $ 10,704,508 $ (362,956) $ 10,341,552 - $ 083
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
63 5. CAPITAL ASSETS, Continued
A. Government-Wide Financial Statements, Continued
Depreciation expense by program for capital assets for the year ended June 30, 2021 is shown below.

6. LONG-TERM DEBT
A schedule of changes in long-term debt for the year ended June 30, 2021 is shown below.

Governmental Business-Type
General government $ 41,659 Wastewater $ 760,601
Public safety 183,567 Recreation programs -
Planning and building 6,456
Public works 1,215,008
Total depreciation expense $ 1,446,690 Total depreciation expense $ 760,601 Balance Balance Due Within
June 30, 2020 Additions Deletions June 30, 2021 One Year Governmental Activities
Pension Obligation Bonds $ 1,980,000 $ (365,000) - $ $ 1,615,000 $ 380,000 2019 Lease Revenue Bonds A 4,490,000 - 4,490,000 - -
2019 Lease Revenue Bonds B 4,465,000 (445,000) - 4,020,000 475,000 Unamortized premium and discount
from issuance 342,371 (14,265) - 328,106 -
Installment Note 75,000 (5,000) - 70,000 5,000
Accrued Compensated Absences 611,347 366,203 (359,046) 618,504 226,420 Total Governmental Activities 11,963,718 366,203 (1,188,311) 11,141,610 1,086,420 Business-Type Activities
Accrued Compensated Absences 136,007 112,784 (143,084) 105,707 58,459 Total Business-Type Activities $ 136,007 $ 112,784 $ (143,084) $ 105,707 $ 58,459 084
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
64 6. LONG-TERM DEBT, CONTINUED
A. Bonds Payable
Pension Obligation Bonds
On June 21, 2012, the Scotts Valley City Council issued $4,460,000 par value bonds. The proceeds of the Bonds were used to refund the City's outstanding "side fund" obligations to the California Public Employees' Retirement System (PERS) pursuant to a contract between the City and the Board of Administration of PERS. Annual principal payments range from $180,000 to $430,000 plus interest from .75% to 4.4% per annum, through 2025. The annual debt service requirements for bonds are as follow.

PFA Series 2019A and 2019B Lease revenue refunding bonds On July 25, 2019, the Scotts Valley Public Financing Authority issued $4,490,000 Series A tax-exempt lease revenue refunding bonds and $4,970,000 Series B taxable revenue refunding bonds. The bond proceeds are used to refinance the City’s obligation of 1997-1 Refunding Certificate of Participation, 2003 Capital Improvement Certificates of Participation, and 2013 Refunding Certificate of Participation. Annual principal payments range from $200,000 to $930,000 plus interest from 2.125% to 4.0% per annum, through 2044. Interest on Bonds is payable semiannually on April 1 and October 1 of each year. The refunding resulted in an $828,009 refunding loss, and an aggregated difference of $961,846 in debt service, which decreased the total debt service after the refunding.

Year Ending
June 30, Principal Interest Total
2022 380,000 $ 60,345 $ 440,345 $
2023 395,000 44,648 439,648
2024 410,000 27,735 437,735
2025 430,000 9,460 439,460
Total $ 142,188 1,615,000 $ 1,757,188 $
Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2022 - $ 160,550 $ 475,000 $ 91,776 $ 475,000 $ 252,326 $ 2023 - 160,550 510,000 80,609 510,000 241,159
2024 - 160,550 560,000 68,156 560,000 228,706
2025 - 160,550 600,000 54,795 600,000 215,345
2026 - 160,550 575,000 40,737 575,000 201,287
2027-2031 825,000 738,450 1,300,000 26,893 2,125,000 765,343 2032- 2036 1,205,000 520,850 - - 1,205,000 520,850
2037 - 2041 1,465,000 267,550 - - 1,465,000 267,550
2041 - 2044 995,000 79,725 - - 995,000 79,725
$ 2,409,325 4,490,000 $ 4,020,000 $ 362,966 $ 8,510,000 $ 2,772,291 $ 2019A - Tax Exempt 2019B - Taxable Total
085
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
65 6. LONG-TERM DEBT, Continued
B. Notes Payable
Installment Note
In 1997, the City agreed to a $165,000 installment note payable to the Scotts Valley Water District for the City's share of bonds issued by the Water District for the construction of recycled water pipe lines. The District and the City shared the proceeds of the bond issue in order to save on issuance costs. The proceeds were used for recycled water pipes to City parks. Annual principal amounts vary from $-0- to $15,000 plus interest at 6% per annum, through 2028. The annual debt service requirements for the installment note are as follow.

C. Accrued Compensated Absences
Employees accrue vacation, annual leave, earned time-off, and holiday leave up to certain maximums based on the employee’s bargaining unit. The City accrues for compensated absences as it is earned by employees. The amount of compensated absences payable outstanding as of June 30, 2021 was $724,211.

7. DEFINED BENEFIT PENSION PLAN
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors four rate plans (two miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

Year Ending
June 30, Principal Interest Total
2022 5,000 $ 4,050 $ 9,050 $
2023 10,000 3,600 13,600
2024 10,000 3,000 13,000
2025 10,000 2,400 12,400
2026 10,000 1,800 11,800
2027 - 2028 25,000 1,650 26,650
Total $ 70,000 $ 16,500 $ 86,500
086
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
66 7. DEFINED BENEFIT PENSION PLAN, COTINUED
Benefit Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employee’s Retirement Law.

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

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

The City’s contributions to the Plan for the measurement period ended June 30, 2020 were $1,712,678.

Miscellaneous Miscellaneous PEPRA
Hire date Prior to 1/1/2013 On or after 1/1/2013
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 year service 5 year service
Benefit payment Monthly for life Monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits as a % of annual salary 2.0% - 2.5% 1.0% - 2.5% Required employee contribution rates 8% 6.75%
Required employer contribution rates 12.361% 7.732%
Required unfunded liability payment 718,866 10,006
Safety Safety PEPRA
Hire date Prior to 1/1/2013 On or after 1/1/2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 year service 5 year service
Benefit payment Monthly for life Monthly for life
Retirement age 50 50 - 57
Monthly benefits as a % of annual salary 3.0% 2.0% - 2.7% Required employee contribution rates 9% 13%
Required employer contribution rates 22.437% 13.044%
Required unfunded liability payment 572,646 15,013
087
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
67 7. DEFINED BENEFIT PENSION PLAN, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2021, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $19,903,650.

The City’s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportionate of the net pension liability was based on the City’s plan liability and asset-related information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.

The City’s proportionate share of the net pension liability for each Plan as of June 30, 2019 and 2020 were as follows:

For the year ended June 30, 2021, the City recognized pension expense of $2,914,325. At June 30, 2021, the City reported deferred outflow of resources and deferred inflows of resources related to pension from the following sources:

Proportion - June 30, 2019 0.17981%
Proportion - June 30, 2020 0.18293%
Change - Increase (decrease) 0.00312%
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected
and actual experience 1,260,961 $ - $
Changes in assumptions - 107,579
Net differences between projected actual earnings
and actual earnings on plan investments 519,163 -
Changes in employer's proportion 395,177 -
Differences between the employer's
contributions and the employer's
proportionate share of contributions - 822,769
Pension contributions subsequent to
the measurement date 1,803,286 -
Total $ 930,348 3,978,587 $
088
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
68 7. DEFINED BENEFIT PENSION PLAN, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$1,803,286 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022.

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

Actuarial Assumptions – The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Fiscal Year
Ending June 30,
2022 96,138 $
2023 494,935
2024 400,663
2025 253,217
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal in accordance with the requirement of GASB 68 Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Projected Salary Increase Varies by entry age and service Investment Rate of Return 7.15%
Mortality (1) Derived by CalPERS membership data for all funds (1) The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of Scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website 089
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
69 7. DEFINED BENEFIT PENSION PLAN, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Discount Rate – The discount rate used to measure the total pension liability was 7.15% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

The long-term expected rate of return on pension 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 pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single 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 the 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 rates of return are net of administrative expenses.

New
Strategic Real Return Real Return
Asset Class (a) Allocation Years 1 - 10(b) Years 11+(c) Global equity 50.00 % 4.80 % 5.98 %
Fixed income 28.00 1.00 2.62
Inflation assets - 0.77 1.81
Private equity 8.00 6.30 7.23
Real assets 13.00 3.75 4.93
Liquidity 1.00 - (0.92)
Total 100.00 %
(a) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.00% used for this period. (c) An expected inflation of 2.92% used for this period. 090
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
70 7. DEFINED BENEFIT PENSION PLAN, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

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

Payable to the Pension Plan
At June 30, 2021 the City reported no amount payable for outstanding amount of contributions to the pension plan required for the year ended June 30, 2021.

8. OTHER POST EMPLOYMENT BENEFIT PLAN
A. Plan Description
The City administers a single-employer defined benefit post-employment healthcare plan (Plan) which provides post-employment benefits to eligible employees in the form of partial reimbursement for postretirement health insurance premiums. Eligibility requirements include a minimum of ten years employment with the City and minimum retirement ages of 50 years for safety employees and 55 years for non-safety employees. For eligible employees, the City will pay 31.2% to 100% of the retired employee's health insurance premiums, the exact amount determined by years of service, employee group, and age. In addition, there is a cap on what the City will contribute that is indexed to the cost of CaiPERS post-retirement medical insurance premiums. The Plan does not issue separate financial statements. The obligation of the City to provide these benefits is determined by agreements with the various employee bargaining groups.
1% Decrease 6.15%
Net Pension Liability $ 29,144,938
Current Discount Rate 7.15%
Net Pension Liability $ 19,903,650
1% Increase 8.15%
Net Pension Liability $ 12,292,094
091
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
71 8. OTHER POST EMPLOYMENT BENEFIT PLAN, Continued
B. Employees Covered
As of the June 30, 2019 actuarial valuation, the following current and former employees were covered by the benefit terms under the Retiree Health Plan:

C. Contribution
The contribution requirements of plan members and the City are established and may be amended by the City. The required contribution is based on a projected pay-as-you-go financing requirements, with additional amounts to prefund benefits determined annually by the City Council. For the fiscal year ended June 30, 2021, the City contributed $568,155 (including implicit subsidy) and zero to prefund benefits. Plan members receiving benefits contributed no amounts to the total premiums. The General Fund has typically been used to liquidate OPEB liabilities for governmental funds.

D. Net OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019 using the following actuarial methods and assumptions:

E. Discount Rate
The discount rate used to measure the total OPEB liability was 2.21%. The City’s OPEB plan is an unfunded plan, therefore the discount rate was set to the rate of tax-exempt, high quality 20-year municipal bonds, as of the valuation date.

Inactives currently receiving benefits 41
Active employees 53
Total 94
Actuarial Assumptions:

Contribution policy No pre-funding
Discount Rate 2.21%
Inflation 2.50%
Salaries Increases 2.75%
Mortality CalPERS 1997- 2015 Experience Study
Mortality Improvements Mortality projected fully generationsl with Scale MP-2021 Medical Trend 3.75% to 6.75%
092
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
72 8. OTHER POST EMPLOYMENT BENEFIT PLAN, Continued
F. Changes in the Total OPEB Liability
The changes in the total OPEB liability for the OPEB plan are as follows:

G. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City 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, 2020:

H. Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rate The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate for the measurement period ended June 30, 2020:

Total OPEB
Liability
Balance at June 30, 2020 (Measurement Date) 15,524,839 $ Service cost 595,930
Interest on the total OPEB liability 555,520
Differences between actual
and expected experience (772,346)
Changes in assumptions 269,575
Benefits paid to retirees (497,535)
Net changes 151,144
Balance at June 30, 2021 $ 15,675,983
1% Decrease 1.21%
Total OPEB Liability $ 18,250,887
Current Discount Rate 2.21%
Total OPEB Liability $ 15,675,983
1% Increase 3.21%
Total OPEB Liability $ 13,615,792
1% Decrease 2.75% to 5.75%
Total OPEB Liability $ 13,492,705
Current Health Care Trend Rate 3.75% to 6.75%
Total OPEB Liability $ 15,675,983
1% Increase 4.75% to 7.75%
Total OPEB Liability $ 18,431,307
093
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
73 8. OTHER POST EMPLOYMENT BENEFIT PLAN, Continued
I. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense of $851,544. At June 30, 2021, the City reported deferred outflow of resources and deferred inflows of resources related to OPEB from the following sources:
$568,155 is reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

9. COMMITMENTS AND CONTINGENCIES
a) On December 17, 2003, the City entered into a Memorandum of Understanding (MOU) with the Land Trust of Santa Cruz County, a nonprofit organization, for the acquisition of a $1,070,000 endowment, which was established by grant funds from the California Wildlife Conservation Board. The Land Trust preserves approximately 170 acres and is divided into nine parcels owned by the City with portions of one parcel owned by the Scotts Valley Water District. Expenditures for the endowment are overseen by the City and managed by the Land Trust.

On March 21, 2018, the City and Land Trust entered into a Memorandum of Understanding with a retroactive effective date of November 7, 2017, to jointly implement the Long-term Management Plan for the Preserve.

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected
and actual experience $ - $ 655,324
Changes in assumptions 795,911 972,098
OPEB contributions subsequent to
the measurement date 568,155 -
Total $ 1,364,066 $ 1,627,422
Deferred
Year Ending Outflows/(Inflows)
June 30, of Resources
2022 (301,228) $
2023 (301,228)
2024 (172,866)
2025 2,676
2026 (13,156)
Thereafter (45,709)
094
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
74 9. COMMITMENTS AND CONTINGENCIES, CONTINUED
All costs associated with the management of the Preserve are paid by investment earnings and principal of this endowment. If the Land Trust is unable to provide management services or if the agreement is terminated, any remaining amount in the endowment trust fund will be returned to the City. b) Through an agreement with the City of Santa Cruz, the City is obligated to pay 4% of the new outfall facilities operation and maintenance costs in order to use the Santa Cruz sewer outfall facility. c) The City has construction contract commitments in the amount of $1,845,641 at June 30, 2021 for the following projects:

10. CLASSIFICATION FUND BALANCE
As of June 30, 2021, fund balances were classified as shown below.

Project Commitment
Building Improvements $ 6,582
Street Improvements 845,360
Parks Improvements 109,435
Sanitary Sewer 269,259
Library Building Improvements 615,005
$ 1,845,641
Successor Traffic General Nonmajor
General Housing General Impact Lennar Capital Governmental Fund Agency Facilities Mitigation Fund Improvements Funds Total Nonspendable: $ 139,532 $ - $ - $ - $ - $ - $ - $ 139,532 Restricted:

Debt service 33,184 - - - - - - 33,184
Low mod housing - 2,661,760 - - - - - 2,661,760
Impact fees - - - 665,289 - - - 665,289
Public works - - - - - 930,814 1,966,110 2,896,924
Public safety - - - - - - 563,137 563,137
Parks & recreation - - - - - - 1,956,028 1,956,028
Community development - - - - - - 550,578 550,578
Planning - - - - - - 455,827 455,827
Subtotal 33,184 2,661,760 - 665,289 - 930,814 5,491,680 9,782,727 Assigned:

Debt service - - - - - - 994,598 994,598
Public works - - - - - - 209,102 209,102
Parks & recreation - - - - - - 126,804 126,804
Subtotal - - - - - - 1,330,504 1,330,504
Unassigned 6,859,758 - (46,835) - - - (242,570) 6,570,353 Total $ 7,032,474 $ 2,661,760 $ (46,835) $ 665,289 $ - $ 930,814 $ 6,579,614 $ 17,823,116 095
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
75 11. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY On June 29, 2011, Assembly Bills 1x 26 (the "Dissolution Act") and 1x 27 (the "Continuation Act") were enacted as part of the FY 2011-12 state budget package. The Dissolution Act required each California redevelopment agency to suspend nearly all activities except to implement existing contracts, meet already-incurred obligations, preserve its assets and prepare for impending dissolution. Assembly Bill 1x 27 provided a means for redevelopment agencies to continue to exist and operate by means of a Voluntary Alternative Redevelopment Program.

The league of California Cities and the California Redevelopment Association (CRA) filed a lawsuit on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning the California Supreme Court to overturn the Dissolution Act and Assembly Bill 1 x 27 on the grounds that these bills violate the California Constitution.

On December 29, 2011, the California Supreme Court upheld the Dissolution Act and struck down the Continuation Act.

On June 27, 2012, as part of the FY 2012-13 state budget package, the Legislature passed and the Governor signed AB 1484, which made technical and substantive amendments to the Dissolution Act based on experience to-date at the state and local level in implementing the Dissolution Act.

Under the Dissolution Act, each California redevelopment agency (each a "Dissolved RDA'') was dissolved as of February 1, 2012, and the sponsoring community that formed the Dissolved RDA, together with other designated entities, have initiated the process under the Dissolution Act to unwind the affairs of the Dissolved RDA. A Successor Agency was created for each Dissolved RDS which is the sponsoring community of the Dissolved RDA unless is elected not to serve as the Successor Agency.

On February 1, 2012, the City adopted a Resolution electing to serve as the Successor Agency to the City of Scotts Valley Redevelopment Agency.

The Dissolution Act also created oversight boards which monitor the activities of the successor agencies. The roles of the successor agencies and oversight boards are to administer the wind down of each dissolved RDA which includes making payments due on enforceable obligations, disposing of the assets (other than housing assets) and remitting the unencumbered balances of the Dissolved RDAs to the County Auditor-Controller for distribution to the affected taxing entities.

The Dissolution Act allowed the sponsoring community that formed the Dissolved RDA to elect to assume the housing functions and take over the certain housing assets of the Dissolved RDA. If the sponsoring community does not elect to become the Successor Housing Agency and assume the Dissolved RDA's housing functions, such housing functions and all related housing assets will be transferred to the local housing authority in the jurisdiction. AB 1484 modified and provided some clarifications on the treatment of housing assets under the Dissolution Act. The City of Scotts Valley Housing Authority elected to serve as the Housing Successor Agency on February 1, 2012. Prior to February 1, 2012, the activities of the Dissolved RDA were reported in the governmental funds statements of the City. After the date of dissolution, the housing assets, obligations, and activities of the Dissolved RDA are reported in a fiduciary fund in the financial statements of the City. All other assets, obligations, and activities of the Dissolved RDA have also been transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
096
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
76 11. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued The Dissolution Act and AB 1484 also establish roles for the County Auditor-Controller, the California Department of Finance (the "DOF") and the California State Controller's office in the dissolution process and the satisfaction of enforceable obligations of the Dissolved RDAs. The County Auditor-Controller is charged with establishing a Redevelopment Property Tax Trust Fund (the "RPTFF") for each successor agency and depositing into the RPTFF for each six-month period the amount of property taxes that would have otherwise been paid to the Dissolved RDA as property tax increment. The deposit in the RPTFF fund is to be used to pay to the successor agency the amounts due on the successor agency's enforceable obligations for the upcoming six-month period.

The successor agency is required to prepare a recognized obligation payment schedule (the "ROPS") approved by the oversight board setting forth the amounts due for each enforceable obligation during each six month period. The ROPS is submitted to the DOF for approval. The County Auditor-Controller will make payments to the successor agency from the RPTFF based on the ROPS amount approved by the DOF. The ROPS is prepared in advance for the enforceable obligations due over the next six months.

The process of making RPTFF deposits to be used to pay enforceable obligations of the Dissolved RDA will continue until all enforceable obligations have been paid in full and all non-housing assets of the Dissolved RDA have been liquidated.

The State Controller of the State of California has been directed to review the propriety of any transfers of assets between Dissolved RDA and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency.
097
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
77 11. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued A. Capital Assets
Summary of changes in capital asset for the year ended June 30, 2021 is as follows:

B. Long-Term Debt
Summary of changes long-term debt for the year ended June 30, 2021 is as follows:

June 30, 2020 June 30, 2021
Balance Additions Reductions Balance
Governmental activities
Capital assets, not being depreciated
Land $ 5,386,012 $ - $ - $ 5,386,012
Total capital assets, not being depreciated 5,386,012 - - 5,386,012 Capital assets, being depreciated
Buildings 2,959,278 - - 2,959,278
Improvements 4,078,690 - - 4,078,690
Equipment and furnitures 245,037 - - 245,037
Total capital assets, being depreciated 7,283,005 - - 7,283,005 Less accumulated depreciation for:

Buildings (621,451) (59,185) - (680,636)
Improvements (1,091,097) (102,647) - (1,193,744)
Equipment and furnitures (233,874) (10,163) - (244,037) Total accumulated depreciation (1,946,422) (171,995) - (2,118,417) Total capital assets, being depreciated, net 5,336,583 (171,995) - 5,164,588 Governmental activities capital assets, net $ 10,722,595 $ (171,995) $ 10,550,600 - $ Balance
June 30, 2020 Balance Due Within
as restated Additions Deletions June 30, 2021 One Year
2017 Tax Allocation Refunding Bonds 11,530,000 $ - $ (530,000) $ 11,000,000 $ 545,000 $ Bond issuance premium 80,740 - (4,480) 76,260 -
Total Refunding Bonds 11,713,044 - (534,480) 11,076,260 545,000 Advance from the City 3,332,365 - - 3,332,365 -
Note Payable - Housing Fund 1,709,521 - (894,958) 814,563 - Note Payable - Enterprise Fund 1,600,000 - - 1,600,000 - Total Successor Agency long-term debt 18,354,930 $ - $ (1,429,438) $ 16,823,188 $ 545,000 $ 098
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
78 11. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued B. Long-Term Debt, Continued
Tax Allocation Refunding Bonds
In April 2017, the Scotts Valley Successor Agency issued $9,150,000 par value of Series A Tax Allocation Refunding Bonds and $3,805,000 par value of Taxable Series B Tax Allocation Refunding Bonds. The proceeds were used in part to fully refund the 2006 Tax Allocation Refunding Bonds and to fully refund in October of 2019 the 2009 Lease Revenue, Series A and Series B (Taxable) bonds. The annual repayment installments range from $410,000 to $715,000, plus interest at 3.125% to 4.0% per annum, through 2036.

The balance as of June 30, 2021 was $11,000,000
Advances from the City
Advance from the City's General Fund ($3,332,365), former Redevelopment Agency Affordable Housing Fund ($814,563), and Wastewater Enterprise Fund ($1,600,000). The advances will be repaid with tax increment revenues allocated to the Successor Agency Private Trust Fund. The total balance as of June 30, 2021 was $5,746,928.

12. ASSESSMENT DISTRICT BOND OBLIGATIONS
The City acts as an agent for collection of property taxes and repayment of community facilities improvement bonds issued by the Community Facilities District located within the City. Since the City is not obligated in the event of any manner for these special assessment bonds, the debt is not recorded in these financial statements. The outstanding balance of the bond obligations at year end was as follows:

Community Facilities District, 97-1 Series A $ 2,595,000

13. RISK MANAGEMENT
The City participates in a public entity risk pool that operates as a common risk management and insurance program for nine other local jurisdictions, created pursuant to California law for liability and workers' compensation insurance services. The City pays an annual premium to the pool for its general liability and workers' compensation coverage. Risk of loss is retained for general liability claims by each city per occurrence. The agreement with the pool provides that it will be self-sustaining through member premiums and that excess coverage be carried for general liability claims and for workers’ compensation claims in excess per insured event. The amount of unpaid claims was immaterial at fiscal year-end.

The City established a Dental Insurance Fund (an internal service fund) to account for and finance its uninsured risks of loss for employee dental care. The Dental Insurance Fund finances employee and dependent claims per participant per calendar year entirely through self-insurance. The amount of unpaid claims was immaterial at fiscal year-end.

The City continues to carry commercial insurance for all other insured risks of loss. The City paid no settlements in excess of insurance coverage in any of the past three fiscal years. 099
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
79 14. JOINT POWERS AUTHORITY
Bay Area Self Insurance Authority (MBASIA). The relationship between the City and the JPA is such that the JPA is not a component of the City for financial reporting purposes.

The Monterey Bay Area Self Insurance Authority (MBASIA) provides workers' compensation and liability insurance for its members: various small cities in the Monterey Bay Area. MBASIA is governed by a board of directors composed of representatives from each of the member cities. This board controls the operations of the MBASIA, including selection of management and approval of operating budgets independent of any influence by the member cities beyond their representation on the Board. Each member city pays a premium based on factors determined by the board.

Financial statements may be obtained from MBASIA c/o Alliant Insurance Services, 100 Pine Street, 11th Floor, San Francisco, CA 94111.

15. PRIOR PERIOD ADJUSTMENTS
During the year ended June 30, 2021, the City recorded prior period adjustments to record the payment of loan receivable of the Successor Agency, and to correct the duplicated recording of bond premium at issuance for the Successor Agency 2017 Tax Allocation Bond. The City also recorded the prior period adjustments for the implementation of the Accounting Standard GASB 84.

16. DEFERRED COMPENSATION PLAN
Effective September 7, 1977, the City established a 457 Governmental Deferred Compensation Plan with ICMA Retirement Corporation to provide retirement income and other deferred benefits to the Employee of the Employer and the Employees’ Beneficiaries in accordance with the provisions of Section 457 of the Code.

All full-time permanent employees are eligible to participate in this plan. In fiscal year 2021, the employees were able to contribute to the plan up to $19,500. Employer did not contribute to the plan as of fiscal year 2021.

Net Position/ Net Position/
Fund Balance Advanced Fund Balance
as Previously Notes Receivable - Bond Premium Assessment Bond reserve Cash and Net Position Reported Successor Agency Payable Collected Payable Investments Deposits as Restated Fund Financial Statements
Governmental Fund
Successor Housing
Agency Fund $ 1,589,318 $ 894,960 $ - $ - -$ $ - $ - $ 2,484,278 Fiduciary Funds
General Trust Fund - - - - - 237,407 - 237,407
SVRDA Successor
Agency Fund (5,948,466) - 102,304 - - - (5,846,162) -
SV Drive A
Redemption Fund - - 264,378 - 164,192 - 164,192 428,570 SV Drive A
Prepayment Fund - - - 8,376 - - - 8,376
SV Drive A
Reserve Fund $ - $ - $ - $ 65,389 $ 358,232 $ - $ - $ 423,621 Prior Period Adjustments
100
City of Scotts Valley
Notes to Basic Financial Statements
For the year ended June 30, 2021
80 17. DEFICIT FUND BALANCES
At June 30, 2021, the following City funds had deficit fund balances:
 General Facilities Fund – ($46,835). The deficit will be eliminated by future impact fee revenues.  Recycling Fund – ($151,200). The deficit will be eliminated through a portion of future fees paid by solid waste companies and customers throughout the County of Santa Cruz for disposal of solid waste in County transfer facilities
 Senior Center Fund – ($4,196)
 Estates Landscape Maintenance District Fund – ($1,706)  Planning Grant Program Fund – ($5,980)
 Recreation Fund – ($3,276,975). The deficit is due to the closing of Recreation Department during COVID-19.

18. COVID-19 PANDEMIC
In March 2020, the World Health Organization declared a global pandemic due to an outbreak of the coronavirus disease (COVID-19). In response to the continued impact of the COVID-19 pandemic, the Federal government enacted two major relief programs for states and local governments.

In March 2020, the U.S. Congress passed the CARES Act stimulus package. Through the Coronavirus Relief Fund, the CARES Act provided a payment to the city in the amount of $144,375. These funds were not accounted for in the budget and were used for necessary expenditures incurred due to the public health emergency in the prior fiscal year.

To combat the continued impact of the COVID-19 pandemic, the American Rescue Plan Act (ARPA) was signed into law in March 2021. The City will receive the funds in two tranches- the first after the U.S. Treasury certifies the proceeds to each jurisdiction and the second payment a year later. To date, the City has received $1,406,262. Eligible uses for these funds fall into four broad categories. a) Support public health expenditures by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; or address negative economic impacts caused by the public health emergency, including economic harm to workers, households, small businesses, impacted industries, and the public sector. b) Replace lost public sector revenue, using recovery funds to provide government services to the extent of the reduction in revenue experienced due to the pandemic. c) Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical sectors. d) Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet.

In accordance with eligible uses, Council approved $805,000 to support improvements to the Public Works facility identified as CIP #45 along with a combination of restoration of services, including public safety services, to pre-pandemic levels.
101
81 REQUIRED

SUPPLEMENTARY INFORMATION
102
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City of Scotts Valley
Required Supplementary Information
For the year ended June 30, 2021
83 1. BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all government funds. Appropriations lapse at fiscal year-end. The appropriated budget is prepared by fund, function and department. The City manager may make transfers of appropriations within a department.

Transfers between departments and other changes require City Council approval. The legal level of control is the department and fund level. The Council made supplemental appropriations during the fiscal year.

Encumbrance accounting is not employed in governmental funds. 104
City of Scotts Valley
Budgetary Comparision Schedule - General Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 10,010,225 $ 10,010,225 $ 12,074,851 $ 2,064,626 $ Franchise fees 1,033,000 1,033,000 1,044,899 11,899
Intergovernmental revenues 11,000 11,000 151,875 140,875 Fees and services 968,920 968,920 1,235,634 266,714
Fines and forfeitures 25,100 25,100 17,510 (7,590)
Investment earnings 69,000 69,000 27,816 (41,184)
Miscellaneous revenues 176,100 456,100 416,665 (39,435) Total revenues 12,573,345 12,293,345 14,969,250 2,395,905 EXPENDITURES:

Current:

Legislative 302,644 302,644 400,293 (97,649)
Legal 184,000 184,000 279,171 (95,171)
General government 648,300 648,300 624,097 24,203
Administration 470,919 470,919 470,224 695
Finance 696,015 696,015 705,455 (9,440)
Human resources 40,740 40,740 46,251 (5,511)
Information technology 142,200 142,200 106,586 35,614
Risk management 437,725 437,725 351,059 86,666
Police 5,556,294 5,556,294 4,884,618 671,676
Animal control 120,000 120,000 97,595 22,405
Emergency services 48,305 48,305 45,541 2,764
Planning 691,855 691,855 662,976 28,879
Building 539,800 539,800 561,694 (21,894)
Engineering 713,285 713,285 639,518 73,767
Street maintenance 497,611 497,611 316,179 181,432
Vehicle maintenance 45,038 45,038 10,209 34,829
Park maintenance 336,588 336,588 326,184 10,404
Building maintenance 309,733 309,733 153,002 156,731
Capital outlay 15,000 15,000 83,460 (68,460)
Debt service:

Principal 455,000 455,000 450,000 5,000
Interest and fiscal charges 267,328 267,328 266,878 450 Total expenditures 12,518,380 12,518,380 11,480,990 1,037,390 REVENUES OVER (UNDER) EXPENDITURES (225,035) 54,965 3,488,260 3,433,295 OTHER FINANCING SOURCES (USES):

Transfers in 235,000 235,000 235,000 -
Transfers out (771,773) (665,693) (771,773) (106,080)
Total other financing sources (uses) (536,773) (430,693) (536,773) (106,080) Net change in fund balances $ (761,808) $ (375,728) 2,951,487 $ 3,327,215 FUND BALANCE:

Beginning of year 4,080,987
End of year $ 7,032,474
Budgeted Amounts
84 105
City of Scotts Valley
Budgetary Comparision Schedule - Successor Housing Agency For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 50,000 $ 50,000 $ 118,240 $ 68,240 $
Facility and building rental 106,760 106,760 155,255 48,495 Investment earnings 15,500 15,500 331 (15,169)
Total revenues 173,260 173,260 274,474 101,214
EXPENDITURES:

Current:

Planning and building 222,000 222,000 96,992 125,008
Total expenditures 222,000 222,000 96,992 125,008

REVENUES OVER (UNDER)
EXPENDITURES (48,740) (48,740) 177,482 226,222
Net change in fund balances $ (48,740) (48,740) $ 177,482 226,222 $ FUND BALANCES (DEFICITS):

Beginning of year, as restated 2,484,278
End of year $ 2,661,760
Budgeted Amounts
85 106
City of Scotts Valley
Budgetary Comparision Schedule - General Facility
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 10,000 $ 10,000 $ 8,904 (1,096) $
Investment earnings 1,500 1,500 74 (1,426)
Total revenues 11,500 11,500 8,978 (2,522)
EXPENDITURES:

Current:

General government 200 200 139 61
Total expenditures 200 200 139 61

REVENUES OVER (UNDER)
EXPENDITURES 11,300 11,300 8,839 (2,461)
Net change in fund balances $ 11,300 11,300 $ 8,839 (2,461) $ FUND BALANCES (DEFICITS):

Beginning of year (55,674)
End of year $ (46,835)
Budgeted Amounts
86 107
City of Scotts Valley
Budgetary Comparision Schedule - Traffic Impact Mitigation For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 50,000 $ 50,000 $ 76,474 $ 26,474 $
Investment earnings 12,000 12,000 650 (11,350)
Total revenues 62,000 62,000 77,124 15,124
EXPENDITURES:

Current:

Public works 17,000 17,000 54,715 (37,715)
Total expenditures 17,000 17,000 54,715 (37,715)

REVENUES OVER (UNDER)
EXPENDITURES 45,000 45,000 22,409 (22,591)
Net change in fund balances $ 45,000 45,000 $ 22,409 (22,591) $ FUND BALANCES (DEFICITS):

Beginning of year 642,880
End of year $ 665,289
Budgeted Amounts
87 108
City of Scotts Valley
Budgetary Comparision Schedule - Lennar Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Contributions from non-government $ 52,000 52,000 $ - (52,000) $ Total revenues 52,000 52,000 - (52,000)
EXPENDITURES:

Current:

General government - - - -
Public safety - - - -
Planning and building - - - -
Public works - - - -
Capital outlay 52,000 52,000 - 52,000
Debt service: -
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 52,000 52,000 52,000 -

REVENUES OVER (UNDER)

EXPENDITURES - - - -
FUND BALANCES (DEFICITS):

Beginning of year -
End of year $ -
Budgeted Amounts
88 109
City of Scotts Valley
Required Supplementary Information
For the year ended June 30, 2021

2. DEFINED BENEFIT PENSION PLANS
A. Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years Fiscal Year End 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Measurement date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Proportion of the net pension
liability 0.182930% 0.179810% 0.176640% 0.171970% 0.170910% 0.168390% 0.14606% Proportionate share of the net
pension liability $ 18,424,996 19,903,650 $ 17,021,799 $ 17,054,661 $ 14,789,275 $ 11,558,421 $ 9,088,772 $ Covered payroll 4,508,129 $ 4,713,092 $ 4,719,986 $ 4,620,961 $ 4,527,362 $ 4,236,936 $ 4,236,936 $ Proportionate share of the net
pension
liability as a percentage of
covered payroll 441.51% 390.93% 360.63% 369.07% 326.66% 272.80% 214.51% Plan's share of fiduciary net
position
as a percentage of total net
pension liability 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82% * Fiscal year 2015 was the 1st year of implementation, therefore there are fewer than 10 years shown. * CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65 to 7.15% in fiscal year 2018. * The CalPERS mortality assumptions was adjusted in fiscal year 2019.

2. DEFINED BENEFIT PENSION PLANS
B. Schedule of Contributions - Last 10 Years
Fiscal Year End 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Contractually required
contribution
(actuarially determined) 1,803,286 $ 1,682,514 $ 1,511,426 $ 1,324,761 $ 1,213,139 $ 1,091,041 $ 840,335 $ Contractually in relation to the
actuarially
determined contributions (1,803,286) (1,712,678) (1,511,426) (1,324,761) (1,213,139) (1,091,041) (840,335) Contributions deficiency (excess) - $ (30,164) $ - $ - $ - $ - $ - $ Covered payroll $ 4,508,129 4,024,586 $ 4,713,092 $ 4,719,986 4,620,961 4,527,362 4,236,936 Contributions as a percentage of
covered payroll 44.81% 37.32% 32.07% 28.07% 26.25% 24.10% 19.83% * Fiscal year 2015 was the 1st year of implementation, therefore there are fewer than 10 years shown.

Notes to Schedules for plan above:

Actiarial cost method
Amortization Method/Period
Asset valuation method
Inflation
Salaries increase
Remaining Amortization Periods
Investment rate of return
Mortality
Differs by employer rate plan but not more than 30 years

7.00% net of investment and administrative expense
Derived using CalPERS' Membership Data for all Funds. The post-retirement mortality rates above include 15 years of projected on-going mortality improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries The actuarial methods and assumptions used to set the actuarially determined contribution for fiscal year 2021 were derived from June 30, 2018 funding valuation report.

Entry Age Normal Cost Method
Level percent of pay, direct rate smoothing
Market value of assets

2.500%
Vary by Entry Age and Services
89 110
City of Scotts Valley
Required Supplementary Information
For the year ended June 30, 2021

3. OTHER POST EMPLOYMENT BENEFITS (OPEB)
A. Schedule of Changes in the City’s Net OPEB Liability and Related Ratios Fiscal Year End 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Total OPEB Liability:

Service cost $ 525,243 595,930 $ 550,034 $ 648,557 $
Interest on the total pension liability 556,831 555,520 516,005 440,907 Differences between actual and expected experience - (772,346) - - Changes in assumptions 269,575 819,261 (613,407) (1,668,685) Benefits paid to retirees (497,535) (479,307) (426,690) (331,549) Net change in Total OPEB Liability 151,144 1,422,028 25,942 (910,770) Beginning of Year $ 15,524,839 $ 14,102,811 $ 14,076,869 $ 14,987,639 End of Year $ 15,675,983 $ 15,524,839 $ 14,102,811 $ 14,076,869 Total OPEB Liability $ 15,675,983 $ 15,524,839 $ 14,201,811 $ 14,076,869 Covered Employee Payroll $ 4,460,277 $ 4,708,708 $ 4,783,183 $ 4,760,794 Total OPEB Liability as a % of covered employee payroll 351.5% 329.7% 294.8% 295.7% * Fiscal year 2018 was the 1st year of implementation, therefore there are fewer than 10 years shown.

The City does not accumulate assets for the purpose of funding OPEB benefits in accordance of GASB 74 or 75. 90 111

SUPPLEMENTARY INFORMATION
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92 113
City of Scotts Valley
Budgetary Comparision Schedule - General Capital Improvements Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 30,000 $ 30,000 $ 79,304 $ 49,304 $
Investment earnings 20,000 20,000 952 (19,048)
Miscellaneous revenues - 134,634 - 134,634
Total revenues 50,000 50,000 214,890 164,890
EXPENDITURES:

Current:

Public works 22,000 22,000 70,865 (48,865)
Capital outlay 503,835 503,835 209,803 294,032
Total expenditures 525,835 525,835 280,668 245,167

REVENUES OVER (UNDER)
EXPENDITURES (475,835) (475,835) (65,778) 410,057
Net change in fund balances $ (475,835) (475,835) $ (65,778) 410,057 $ FUND BALANCES (DEFICITS):

Beginning of year 996,592
End of year $ 930,814
Budgeted Amounts
93 114
City of Scotts Valley
Enterprise Fund Budgetary Comparison Schedule - Recreation Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
OPERATING REVENUES:

Fees and services 114,700 $ 114,700 $ 32,678 $ (82,022) $ Total operating revenues 114,700 114,700 32,678 (82,022) OPERATING EXPENSES:

Salaries 265,968 265,968 77,300 188,668
Taxes and benefits (201,171) (201,171) 255,938 (457,109) Maintenance and operations 22,175 22,175 14,848 7,327
Advertising 9,000 9,000 - 9,000
Professional and contractual services - - 39 (39)
Utilities and communications 17,500 17,500 5,890 11,610 Insurance and bonds 178,408 178,408 97,220 81,188
Total operating expenses 291,880 291,880 451,235 (159,355) OPERATING INCOME (LOSS) (177,180) (177,180) (418,557) (241,377) Transfers in - - 354,905 354,905
Transfers out (25,069) (25,069) (29,981) (4,912)
Total contributions and transfers (25,069) (25,069) 324,924 349,993 Change in net position $ (202,249) (202,249) $ (92,012) 110,237 $ NET POSITION:

Beginning of year (3,184,963)
End of year $ (3,276,975)
Budgeted Amounts
94 115
City of Scotts Valley
Enterprise Fund Budgetary Comparison Schedule - Wastewater Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
OPERATING REVENUES:

Fees and services 3,023,500 $ 3,023,500 $ 2,925,142 $ (98,358) $ Total operating revenues 3,023,500 3,023,500 2,925,142 (98,358) OPERATING EXPENSES:

Salaries 685,291 685,291 504,777 180,514
Taxes and benefits 530,418 530,418 494,366 36,052
Maintenance and operations 1,484,548 1,484,548 813,361 671,187 Professional and contractual services 130,000 130,000 154,247 (24,247) Utilities and communications 436,000 436,000 387,212 48,788 Insurance and bonds 5,000 5,000 91,180 (86,180)
Depreciation 800,000 800,000 760,601 39,399
Total operating expenses 4,071,257 4,071,257 3,205,744 865,513 OPERATING INCOME (LOSS) (1,047,757) (1,047,757) (280,602) 767,155

NONOPERATING REVENUE (EXPENSES)
Interest income 17,900 17,900 1,872 (16,028)
Total nonoperating revenues (expenses) 17,900 17,900 1,872 (16,028) OTHER FINANCING SOURCES (USES):

Capital contributions 50,000 50,000 116,195 66,195
Transfers out (157,044) (157,044) (50,340) 106,704
Total contributions and transfers (107,044) (107,044) 65,855 172,899 Change in net position $ (1,136,901) (1,136,901) $ (212,875) 924,026 $ NET POSITION:

Beginning of year 11,479,854
End of year $ 11,266,979
Budgeted Amounts
95 116
City of Scotts Valley
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Park and
Drainage Recreation
Recycling Gas Tax Construction Facilities
Fund Fund Fund Fund
ASSETS
Cash and investments -$ 269,139$ 42,053$ $ 1,040,769
Receivables:

Other - - - -
Notes receivable - - - -
Total assets - 269,139 42,053 1,040,769

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 10,509 - - -
Accrued liabilities - - - -
Due to other funds 140,691 - - -
Total liabilities 151,200 - - -
Fund balances:

Restricted - 269,139 42,053 1,040,769
Assigned - - - -
Unassigned (151,200) - - -
Total fund balances (151,200) 269,139 42,053 1,040,769
Total liabilities, deferred inflows of
resources, and fund balances -$ 269,139$ 42,053$ $ 1,040,769 Special Revenue Funds
96 117
Pinewood
Estates Skypark
Mt. Hermon Green Landscape Landscape
Police Senior Traffic Building Tree Maintenance Maintenance Library SMIP Facility Center Mitigation Fees Replacement District District Fees Fees Fund Fund Fund Fund Fund Fund Fund Fund Fund
331,456$ 1,497$ 188,966$ 450,032$ $ 37,277 $ 556,310$ - 362,026$ 6,624$ - - - - - - 544 - -
- - - - - - - - -
331,456 1,497 188,966 450,032 37,277 556,854 - 362,026 6,624 - 5,141 - 238 - 3,077 12 - 591
- 552 - - - - - - -
- - - - 1,694 - - - -
- 5,693 - 238 1,706 - 3,077 - 591
331,456 - - 449,794 37,277 553,233 - 362,026 6,033
- - 188,966 - - - 544 - -
- (4,196) - - (1,706) - - - -
331,456 (4,196) 188,966 449,794 37,277 (1,706) 553,777 362,026 6,033 331,456$ 1,497$ 188,966$ 450,032$ $ 37,277 $ 556,854$ - 362,026$ 6,624$ Special Revenue Funds
97 118
City of Scotts Valley
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Supplemental Surface
Community Law Transportation Police
Center Enforcement Projects Development
Operations Services Grant Fees
Fund Fund Fund Fund
ASSETS
Cash and investments 128,356 $ 143,545 $ 366,989 $ 66,742 $ Receivables:

Other - - - -
Notes receivable - - - -
Total assets 143,545 128,356 366,989 66,742

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 1,961 - 3,775 -
Accrued liabilities 135 - - -
Due to other funds - - - -
Total liabilities - 2,096 3,775 -
Fund balances:

Restricted - 143,545 363,214 66,742
Assigned 126,260 - - -
Unassigned - - - -
Total fund balances 143,545 126,260 363,214 66,742
Total liabilities, deferred inflows of
resources, and fund balances $ 143,545 128,356 $ 366,989 $ 66,742 $ Special Revenue Funds
98 119
EDG Homeland Planning
Revolving Security Disability Library Transportation Police CalTrans - Grant Loan Fund Grant Compliance Facilities Measure D Budget Act Get Everyone Program Fund Fund Fund Fund Fund Fund Moving Fund Fund
$ 1,475$ 578 18,290$ 1,315,351 $ $ 20,103 $ 19,919 $ 17,980 -$ - - 1,846 - 92,356 - - -
550,000 - - - - - - -
550,578 1,475 20,136 1,315,351 112,459 19,919 17,980 -
- - - 78,904 - - 1,380 -
- - - - - - - -
- - - - 189,453 - 4,600 -
- - - 78,904 189,453 - 5,980 -
550,578 1,475 - 1,236,447 19,919 - 17,980 -
- - 20,136 - - - - -
- - - - (76,994) - (5,980) -
550,578 1,475 20,136 1,236,447 (76,994) 19,919 17,980 (5,980) $ 550,578 1,475$ 20,136$ 1,315,351 $ $ 112,459 $ 19,919 $ 17,980 -$ Special Revenue Funds
99 120
City of Scotts Valley
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Total
COP Pension Non-major
Debt Obligation Governmental
Service Bonds Funds
Fund Fund
ASSETS
Cash and investments 994,598$ -$ 6,380,075 $
Receivables:

Other - - 94,746
Notes receivable - - 550,000
Total assets 994,598 - 7,024,821

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable - - 105,588
Accrued liabilities - - 687
Due to other funds - 2,494 338,932
Total liabilities - 2,494 445,207
Fund balances:

Restricted - - 5,491,680
Assigned 994,598 - 1,330,504
Unassigned - (2,494) (242,570)
Total fund balances 994,598 (2,494) 6,579,614
Total liabilities, deferred inflows of
resources, and fund balances 994,598$ -$ 7,024,821 $
Debt Service Funds
100
121
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101
122
City of Scotts Valley
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Park and
Drainage Recreation
Recycling Gas Tax Construction Facilities
Fund Fund Fund Fund
REVENUES:

Taxes and assessments -$ $ - $ - $ -
Intergovernmental revenues 5,000 436,398 - -
Fees and services - - 9,236 119,327
Contributions from non-government - - - -
Investment earnings - 8 22 787
Miscellaneous revenues - - - -
Total revenues 5,000 436,406 9,258 120,114
EXPENDITURES:

Current:

General government - - - -
Public safety - - - -
Planning and building - - - -
Public works 85,989 568 60 1,551
Capital outlay - 230,381 12,900 -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 85,989 230,949 14,451 60

REVENUES OVER (UNDER)
EXPENDITURES (80,989) 205,457 9,198 105,663
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - (235,000) - -
Total other financing sources (uses) - (235,000) - -
Net change in fund balances (80,989) (29,543) 9,198 105,663 FUND BALANCES (DEFICITS):

Beginning of year (70,211) 298,682 32,855 935,106
End of year $ (151,200) $ 269,139 $ 42,053 $ 1,040,769
Special Revenue Funds
102
123
Pinewood
Estates Skypark
Mt. Hermon Green Landscape Landscape
Police Senior Traffic Building Tree Maintenance Maintenance Library SMIP Facility Center Mitigation Fees Replacement District District Fees Fees Fund Fund Fund Fund Fund Fund Fund Fund Fund
-$ -$ $ - -$ $ - $ - $ - -$ -$
- - - - - - - - 2,519
20,579 2,600 16,900 - 7,137 9,000 - 15,478 -
- 1,653 - - - - - - -
293 - 203 442 18 - 659 336 6
- - - - 5,940 - 41,224 - -
20,872 4,253 17,342 203 7,155 5,940 50,883 15,814 2,525 - - - - - - - - -
- - - - - - - - -
- - 6,191 - 52 - - - 2,403
506 62,281 295 - 4,912 - 69,274 557 -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
506 62,281 6,191 295 52 4,912 69,274 557 2,403
20,366 (58,028) 11,151 (92) 7,103 1,028 (18,391) 15,257 122 - 54,972 - - - - - - -
- - - - - - - - -
- 54,972 - - - - - - -
20,366 (3,056) 11,151 (92) 7,103 1,028 (18,391) 15,257 122 311,090 (1,140) 189,058 438,643 30,174 (2,734) 572,168 346,769 5,911 331,456$ (4,196)$ $ 188,966 449,794$ $ 37,277 $ (1,706) $ 553,777 362,026$ 6,033$ 103
124
City of Scotts Valley
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Supplemental Surface
Community Law Transportation Police
Center Enforcement Projects Development
Operations Services Grant Fees
REVENUES:

Taxes and assessments - $ - $ - $ - $
Intergovernmental revenues - 119,042 862,470 -
Fees and services 43,132 - - -
Contributions from non-government - - - -
Investment earnings 212 260 (394) 69
Miscellaneous revenues - - - -
Total revenues 119,302 43,344 862,076 69
EXPENDITURES:

Current:

General government - - - -
Public safety - 324 - 105
Planning and building - - - -
Public works 61,982 - 400 -
Capital outlay - 194,401 223,821 -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 194,725 61,982 224,221 105

REVENUES OVER (UNDER)
EXPENDITURES (75,423) (18,638) 637,855 (36)
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances (75,423) (18,638) 637,855 (36) FUND BALANCES (DEFICITS):

Beginning of year, as restated 144,898 218,968 (274,641) 66,778 End of year 126,260 $ 143,545 $ 363,214 $ 66,742 $
Special Revenue Funds
104
125
EDG Homeland Disability Library Transportation Police CalTrans - Planning Revolving Security Compliance Facilities Measure D Budget Act Get Everyone Grant Loan Fund Grant Fund Fund Fund Fund Moving Fund Program -$ -$ $ 667,905 - $ $ 333,330 $ - $ - $ -
- 23,609 - - - - 56,465 -
- - 6,547 - - - - -
- - - - - - - -
1 (1) 10 349 - 27 (1) -
- - - - - - - -
1 23,608 6,557 668,254 333,330 27 56,464 -
- - - - - - - -
1 - - - - 1,924 - -
- - 243 - - - - 5,980
- - 9,277 - 39,439 - 38,484 -
- - 618,990 - 487,051 - - -
- - - - - - - -
- - - - - - - -
1 - 628,267 243 526,490 1,924 38,484 5,980
- 23,608 6,314 39,987 (193,160) (1,897) 17,980 (5,980)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 23,608 6,314 39,987 (193,160) (1,897) 17,980 (5,980)
550,578 (22,133) 13,822 1,196,460 116,166 21,816 - -
550,578$ 1,475$ $ 20,136 $ 1,236,447 $ (76,994) $ 19,919 $ 17,980 $ (5,980) Special Revenue Funds
105
126
City of Scotts Valley
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Total
COP Pension Non-major
Debt Obligation Governmental
Service Bonds Funds
REVENUES:

Taxes and assessments -$ -$ 1,001,235 $
Intergovernmental revenues - - 1,505,503
Fees and services - - 249,936
Contributions from non-government - - 1,653
Investment earnings 1,027 - 4,333
Miscellaneous revenues - - 47,164
Total revenues 1,027 - 2,809,824
EXPENDITURES:

Current:

General government - - -
Public safety - - 2,354
Planning and building - - 14,869
Public works - - 375,575
Capital outlay - - 1,767,544
Debt service: -
Principal - 365,000 365,000
Interest and fiscal charges 1,559 78,459 80,018
Total expenditures 1,559 443,459 2,605,360

REVENUES OVER (UNDER)
EXPENDITURES (443,459) (532) 204,464
OTHER FINANCING SOURCES (USES):

Transfers in - 442,217 497,189
Transfers out - - (235,000)
Total other financing sources (uses) - 442,217 262,189
Net change in fund balances (532) (1,242) 466,653
FUND BALANCES (DEFICITS):

Beginning of year 995,130 (1,252) 6,112,961
End of year 994,598$ $ (2,494) $ 6,579,614
Debt Service Funds
106
127
City of Scotts Valley
Budgetary Comparison Schedule - Recycling Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues $ 75,000 75,000 $ 5,000 $ (70,000) $ Investment earnings 100 100 - (100)
Total revenues 75,100 75,100 5,000 (70,100)
EXPENDITURES:

Current:

Public works 70,000 70,000 85,989 (15,989)
Total expenditures 70,000 70,000 85,989 (15,989)

REVENUES OVER (UNDER)
EXPENDITURES 5,100 5,100 (80,989) (86,089)
Net change in fund balances $ 5,100 5,100 $ (80,989) (86,089) $ FUND BALANCES (DEFICITS):

Beginning of year (70,211)
End of year $ (151,200)
Budgeted Amounts
107
128
City of Scotts Valley
Budgetary Comparison Schedule - Gas Tax Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues $ 495,329 495,329 $ 436,398 $ (58,931) $ Investment earnings 3,000 3,000 8 (2,992)
Total revenues 498,329 498,329 436,406 (61,923)
EXPENDITURES:

Current:

Public works 700 700 568 132
Capital outlay 295,000 295,000 230,381 64,619
Total expenditures 295,700 295,700 230,949 64,751

REVENUES OVER (UNDER)
EXPENDITURES 202,629 202,629 205,457 2,828
OTHER FINANCING SOURCES (USES):

Transfers out - - (235,000) (235,000)
Total other financing sources (uses) - - (235,000) (235,000) Net change in fund balances $ 202,629 202,629 $ (29,543) (232,172) $ FUND BALANCES (DEFICITS):

Beginning of year 298,682
End of year $ 269,139
Budgeted Amounts
108
129
City of Scotts Valley
Budgetary Comparison Schedule - Drainage Construction Fun For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 15,000 $ 15,000 $ 9,236 $ (5,764) $
Investment earnings 500 500 22 (478)
Total revenues 15,500 15,500 9,258 (6,242)
EXPENDITURES:

Current:

Public works 12,000 12,000 60 11,940
Total expenditures 12,000 12,000 60 11,940

REVENUES OVER (UNDER)
EXPENDITURES 3,500 3,500 9,198 5,698
Net change in fund balances $ 3,500 3,500 $ 9,198 5,698 $ FUND BALANCES (DEFICITS):

Beginning of year 32,855
End of year $ 42,053
Budgeted Amounts
109
130
City of Scotts Valley
Budgetary Comparison Schedule - Parks & Recreation Facilities Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 40,000 $ 40,000 $ 119,327 $ 79,327 $
Investment earnings 17,500 17,500 787 (16,713)
Total revenues 57,500 57,500 120,114 62,614
EXPENDITURES:

Current:

Public works 2,000 2,000 1,551 449
Capital outlay 640,000 640,000 12,900 627,100
Total expenditures 642,000 642,000 14,451 627,549
Net change in fund balances $ (584,500) (584,500) $ 105,663 690,163 $ FUND BALANCES (DEFICITS):

Beginning of year 935,106
End of year $ 1,040,769
Budgeted Amounts
110
131
City of Scotts Valley
Budgetary Comparison Schedule - Police Facility Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 10,000 $ 10,000 $ 20,579 $ 10,579 $
Investment earnings 6,000 6,000 293 (5,707)
Total revenues 16,000 16,000 20,872 4,872
EXPENDITURES:

Current:

Public works 750 750 506 244
Capital outlay 89,000 89,000 - 89,000
Total expenditures 89,750 89,750 506 89,244
Net change in fund balances $ (73,750) (73,750) $ 20,366 94,116 $ FUND BALANCES (DEFICITS):

Beginning of year 311,090
End of year $ 331,456
Budgeted Amounts
111
132
City of Scotts Valley
Budgetary Comparison Schedule - Senior Center Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 59,150 $ 59,150 $ 2,600 $ (56,550) $
Contributions from non-government 2,500 2,500 1,653 (847) Miscellaneous revenues 400 400 - (400)
Total revenues 62,050 62,050 4,253 (57,797)
EXPENDITURES:

Current:

Public works 57,761 57,761 62,281 (4,520)
Total expenditures 57,761 57,761 62,281 (4,520)

REVENUES OVER (UNDER)
EXPENDITURES 4,289 4,289 (58,028) (62,317)
OTHER FINANCING SOURCES (USES):

Transfers in - - 54,972 54,972
Total other financing sources (uses) - - 54,972 54,972
Net change in fund balances $ 4,289 4,289 $ (3,056) (7,345) $ FUND BALANCES (DEFICITS):

Beginning of year (1,140)
End of year $ (4,196)
Budgeted Amounts
112
133
City of Scotts Valley
Budgetary Comparison Schedule - Mt. Hermon Traffic Mitigation Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings $ 3,500 $ 3,500 $ 203 $ (3,297)
Total revenues 3,500 3,500 203 (3,297)
EXPENDITURES:

Current:

Public works 400 400 295 105
Total expenditures 400 400 295 105
Net change in fund balances $ 3,100 3,100 $ (92) (3,402) $ FUND BALANCES (DEFICITS):

Beginning of year 189,058
End of year $ 188,966
Budgeted Amounts
113
134
City of Scotts Valley
Budgetary Comparison Schedule - Green Building Fees Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 21,000 $ 21,000 $ 16,900 $ (4,100) $
Investment earnings 8,500 8,500 442 (8,058)
Total revenues 29,500 29,500 17,342 (12,158)
EXPENDITURES:

Current:

Planning and building 4,750 4,750 6,191 (1,441)
Total expenditures 4,750 4,750 6,191 (1,441)
Net change in fund balances $ 24,750 24,750 $ 11,151 (13,599) $ FUND BALANCES (DEFICITS):

Beginning of year 438,643
End of year $ 449,794
Budgeted Amounts
114
135
City of Scotts Valley
Budgetary Comparison Schedule - Tree Replacement Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 1,000 $ 1,000 $ 7,137 $ 6,137 $
Investment earnings 500 500 18 (482)
Total revenues 1,500 1,500 7,155 5,655
EXPENDITURES:

Current:

Planning and building 50 50 52 (2)
Capital outlay 10,000 10,000 - 10,000
Total expenditures 10,050 10,050 52 9,998
Net change in fund balances $ (8,550) (8,550) $ 7,103 15,653 $ FUND BALANCES (DEFICITS):

Beginning of year 30,174
End of year $ 37,277
Budgeted Amounts
115
136
City of Scotts Valley
Budgetary Comparison Schedule - Pinewood Estates Landscape Maintenance Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings $ 200 $ 200 $ - $ (200)
Miscellaneous revenues 6,300 6,300 5,940 (360)
Total revenues 6,500 6,500 5,940 (560)
EXPENDITURES:

Current:

Public works 5,520 5,520 4,912 608
Total expenditures 5,520 5,520 4,912 608
Net change in fund balances $ 980 980 $ 1,028 48 $
FUND BALANCES (DEFICITS):

Beginning of year (2,734)
End of year $ (1,706)
Budgeted Amounts
116
137
City of Scotts Valley
Budgetary Comparison Schedule - Skypark Landscape Maintenance District For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 9,000 $ 9,000 $ 9,000 $ - $
Investment earnings 10,200 10,200 659 (9,541)
Miscellaneous revenues 42,000 42,000 41,224 (776)
Total revenues 61,200 61,200 50,883 (10,317)
EXPENDITURES:

Current:

Public works 60,000 60,000 69,274 (9,274)
Total expenditures 60,000 60,000 69,274 (9,274)

REVENUES OVER (UNDER)
EXPENDITURES 1,200 1,200 (18,391) (19,591)
Net change in fund balances $ 1,200 1,200 $ (18,391) (19,591) $ FUND BALANCES (DEFICITS):

Beginning of year 572,168
End of year $ 553,777
Budgeted Amounts
117
138
City of Scotts Valley
Budgetary Comparison Schedule - Library Fees Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 10,000 $ 10,000 $ 15,478 $ 5,478 $
Investment earnings 6,500 6,500 336 (6,164)
Total revenues 16,500 16,500 15,814 (686)
EXPENDITURES:

Current:

Public works 700 700 557 143
Total expenditures 700 700 557 143

REVENUES OVER (UNDER)
EXPENDITURES 15,800 15,800 15,257 (829)
Net change in fund balances $ 15,800 15,800 $ 15,257 (543) $ FUND BALANCES (DEFICITS):

Beginning of year 346,769
End of year $ 362,026
Budgeted Amounts
118
139
City of Scotts Valley
Budgetary Comparison Schedule - SMIP Fee
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues $ 5,000 5,000 $ 2,519 $ (2,481) $ Investment earnings 150 150 6 (144)
Total revenues 5,150 5,150 2,525 (2,625)
EXPENDITURES:

Current:

Planning and building 5,000 5,000 2,403 2,597
Total expenditures 5,000 5,000 2,403 2,597

REVENUES OVER (UNDER)
EXPENDITURES 150 150 122 (5,222)
Net change in fund balances $ 150 150 $ 122 (28) $
FUND BALANCES (DEFICITS):

Beginning of year 5,911
End of year $ 6,033
Budgeted Amounts
119
140
City of Scotts Valley
Budgetary Comparison Schedule - Community Center Operations For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 68,000 $ 68,000 $ 43,132 $ (24,868) $ Investment earnings- - 212 212
Miscellaneous revenues - - - -
Total revenues 68,000 68,000 43,344 (24,656)
EXPENDITURES:

Current:

Public works 66,701 66,701 61,982 4,719
Total expenditures 66,701 66,701 61,982 4,719

REVENUES OVER (UNDER)
EXPENDITURES 1,299 1,299 (18,638) (19,937)
Net change in fund balances $ 1,299 1,299 $ (18,638) (19,937) $ FUND BALANCES (DEFICITS):

Beginning of year 144,898
End of year $ 126,260
Budgeted Amounts
120
141
City of Scotts Valley
Budgetary Comparison Schedule - Supplemental Law Enforcement Services For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues $ 100,000 100,000 $ 119,042 $ 19,042 $ Investment earnings 2,500 2,500 260 (2,240)
Total revenues 102,500 102,500 119,302 16,802
EXPENDITURES:

Current:

Public safety 28,500 28,500 324 28,176
Capital outlay 120,000 120,000 194,401 (74,401)
Total expenditures 148,500 148,500 194,725 (46,225)
Net change in fund balances $ (46,000) (46,000) $ (75,423) (29,423) $ FUND BALANCES (DEFICITS):

Beginning of year 218,968
End of year $ 143,545
Budgeted Amounts
121
142
City of Scotts Valley
Budgetary Comparison Schedule - Surface Transportation Projects Grant For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues $ 1,844,844 $ 1,844,844 $ 862,470 $ (982,374) Total revenues 1,844,844 1,844,844 862,076 (982,768)
EXPENDITURES:

Current:

Public works - - 400 (400)
Capital outlay 1,844,844 1,844,844 223,821 1,621,023
Total expenditures 1,844,844 1,844,844 224,221 1,620,623 Net change in fund balances $ - - $ 637,855 637,855 $
FUND BALANCES (DEFICITS):

Beginning of year (274,641)
End of year $ 363,214
Budgeted Amounts
122
143
City of Scotts Valley
Budgetary Comparison Schedule - Police Development Fees Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings $ 2,600 $ 2,600 $ 69 $ (2,531)
Total revenues 2,600 2,600 69 (2,531)
EXPENDITURES:

Current:

Public safety 300 300 105 195
Total expenditures 300 300 105 195
Net change in fund balances $ 2,300 2,300 $ (36) (2,336) $ FUND BALANCES (DEFICITS):

Beginning of year 66,778
End of year $ 66,742
Budgeted Amounts
123
144
City of Scotts Valley
Budgetary Comparison Schedule - EDG Revolving Loan Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings1 $ 0 $ 10 $ 1 $ (9)
Total revenues 10 10 1 (9)
EXPENDITURES:

Current:

Public safety 1 1 1 -
Total expenditures 1 1 1 -
Net change in fund balances $ 9 9 $ - (9) $
FUND BALANCES (DEFICITS):

Beginning of year 550,578
End of year $ 550,578
Budgeted Amounts
124
145
City of Scotts Valley
Budgetary Comparison Schedule - Homeland Security Grant Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues $ - $ 23,609 - $ $ 23,609
Investment earnings- - (1) (1)
Total revenues - - 23,608 23,608
Net change in fund balances $ - - $ 23,608 23,608 $
FUND BALANCES (DEFICITS):

Beginning of year (22,133)
End of year $ 1,475
Budgeted Amounts
125
146
City of Scotts Valley
Budgetary Comparison Schedule - Disability Compliance Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fees and services 4,000 $ 4,000 $ 6,547 $ 2,547 $
Investment earnings 250 250 10 (240)
Total revenues 4,250 4,250 6,557 2,307
EXPENDITURES:

Current:

Planning and building 5,040 5,040 243 4,797
Total expenditures 5,040 5,040 243 4,797
Net change in fund balances $ (790) (790) $ 6,314 7,104 $ FUND BALANCES (DEFICITS):

Beginning of year 13,822
End of year $ 20,136
Budgeted Amounts
126
147
City of Scotts Valley
Budgetary Comparison Schedule - Library Facilities Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 444,000 $ 444,000 $ 667,905 $ 223,905 $ Investment earnings 17,000 17,000 349 (16,651)
Total revenues 461,000 461,000 668,254 207,254
EXPENDITURES:

Current:

Public works 1,750 1,750 9,277 (7,527)
Capital outlay 750,000 750,000 618,990 131,010
Total expenditures 751,750 751,750 628,267 123,483
Net change in fund balances $ (290,750) (290,750) $ 39,987 330,737 $ FUND BALANCES (DEFICITS):

Beginning of year 1,196,460
End of year $ 1,236,447
Budgeted Amounts
127
148
City of Scotts Valley
Budgetary Comparison Schedule - Transportation - Measure D Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 265,800 $ 265,800 $ 333,330 $ 67,530 $ Investment earnings 6,000 6,000 - (6,000)
Total revenues 271,800 271,800 333,330 61,530
EXPENDITURES:

Current:

Public works 750 750 39,439 (38,689)
Capital outlay 324,147 324,147 487,051 (162,904)
Total expenditures 324,897 324,897 526,490 (201,593)
Net change in fund balances $ (53,097) (53,097) $ (193,160) (140,063) $ FUND BALANCES (DEFICITS):

Beginning of year 116,166
End of year $ (76,994)
Budgeted Amounts
128
149
City of Scotts Valley
Budgetary Comparison Schedule - Police Budget Act Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings $ 500 $ 500 $ 27 $ (473)
Total revenues 500 500 27 (473)
EXPENDITURES:

Current:

Public safety 15,100 15,100 1,924 13,176
Total expenditures 15,100 15,100 1,924 13,176
Net change in fund balances $ (14,600) (14,600) $ (1,897) 12,703 $ FUND BALANCES (DEFICITS):

Beginning of year 21,816
End of year $ 19,919
Budgeted Amounts
129
150
City of Scotts Valley
Budgetary Comparison Schedule - CalTrans - Get Everyone Moving Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues $ 113,000 113,000 $ 56,465 $ (56,535) $ Total revenues 113,000 113,000 56,464 (56,536)
EXPENDITURES:

Current:

Public works 113,000 113,000 38,484 74,516
Total expenditures 113,000 113,000 38,484 74,516
Net change in fund balances $ - - $ 17,980 17,980 $
FUND BALANCES (DEFICITS):

Beginning of year -
End of year $ 17,980
Budgeted Amounts
130
151
City of Scotts Valley
Budgetary Comparision Schedule - Planning Grants Program Fund For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
EXPENDITURES:

Current:

Planning and building $ - - $ 5,980 (5,980) $
Total expenditures - - 5,980 (5,980)

REVENUES OVER (UNDER)
EXPENDITURES - - (5,980) (5,980)
Net change in fund balances $ - - $ (5,980) (5,980) $
FUND BALANCES (DEFICITS):

Beginning of year -
End of year $ (5,980)
Budgeted Amounts
131
152
City of Scotts Valley
Budgetary Comparison Schedule - COP Debt Service
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings $ 22,000 $ 22,000 $ 1,027 $ (20,973) Total revenues 22,000 22,000 1,027 (20,973)
EXPENDITURES:

Debt service:

Interest and fiscal charges 1,000 1,000 1,559 (559)
Total expenditures 1,000 1,000 1,559 (559)
Net change in fund balances $ 464,745 464,745 $ (532) (465,277) $ FUND BALANCES (DEFICITS):

Beginning of year 995,130
End of year $ 994,598
Budgeted Amounts
132
153
City of Scotts Valley
Budgetary Comparison Schedule - Pension Obligation Bonds For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
EXPENDITURES:

Debt service:

Principal 365,000 $ 365,000 $ 365,000 $ - $
Interest and fiscal charges 78,745 78,745 78,459 (286)
Total expenditures 443,745 443,745 443,459 (286)

REVENUES OVER (UNDER)
EXPENDITURES (443,745) (443,745) (443,459) 286
OTHER FINANCING SOURCES (USES):

Transfers in 443,745 443,745 442,217 (1,528)
Total other financing sources (uses) 443,745 443,745 442,217 (1,528) Net change in fund balances $ - - $ (1,242) (1,242) $
FUND BALANCES (DEFICITS):

Beginning of year (1,252)
End of year $ (2,494)
Budgeted Amounts
133
154
City of Scotts Valley
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2021
Total
General Trust SV Drive A SV Drive A SV Drive A Custodial Fund Redemption Prepayment Reserve Funds
ASSETS
Cash and investments held for others, restricted 181,502 $ 429,284 $ 8,371 $ 65,354$ $ 684,511 Cash and investments held in
accordance with bond indentures, restricted - - 358,180 - 358,180 Other receivables 5,117 - - - 5,117
Total assets 181,502 434,401 8,371 423,534 1,047,808

NET POSITION
Restricted for
Bondholders 181,502 434,401 8,371 423,534 1,047,808
Total net position $ 181,502 $ 434,401 $ 8,371 423,534$ $ 1,047,808 134
155
City of Scotts Valley
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2021
Total
General Trust SV Drive A SV Drive A SV Drive A Custodial Fund Redemption Prepayment Reserve Funds

ADDITIONS
Assessments revenue $ 423,357 - $ 9$ 68$ 423,434 $
Deposits received 12,650 - - - 12,650
Transfers - 52 - (52) -
Total additions 12,650 423,409 9 16 436,084

DELETIONS
Depoits payment 68,555 - - - 68,555
Administrative expenses 15,612 - 14 103 15,729
Debt service payment 401,965 - - - 401,965
Total deletions 68,555 417,577 14 103 486,249

Changes in net position (55,905) 5,832 (5) (87) (50,165) Beginning of the year, as restated 237,407 428,569 8,376 423,621 1,097,973 End of year $ 181,502 $ 434,401 8,371$ 423,534$ $ 1,047,808 135
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STATISTICAL SECTION
(Unaudited)
158
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CITY OF SCOTTS VALLEY

NARRATIVE EXPLANATION OF STATISTICAL SECTION CATEGORIES Financial Trends
The financial trends section provides information to assist the user in understanding and assessing how the City’s financial position has changed over time. Tables 1 and 2 present information from the government-wide statements. Tables 3 and 4 present information from the fund financial statements.

Revenue Capacity Information
The revenue capacity information section provides information to assist the user in understanding and assessing the factors affecting the City’s ability to generate its own-source revenues. Table 5 presents the assessed value of the residential, commercial and other property within the City. Table 6 presents the general property tax rate as well as tax rates from various school districts. Table 7 presents the top ten property tax payers. Table 8 presents the amount of property taxes levied and collected.

Debt Capacity Information
The debt capacity information section provides information to assist the user in understanding and assessing the City’s debt burden and ability to issue additional debt. Table 9 presents the outstanding balance of all direct and overlapping government debt at fiscal year end. Table 10 presents the City’s debt by type as well as total debt as a percentage of personal income and total debt per capita. The personal income is of the County of Santa Cruz because there is no information available for the City of Scotts Valley alone. Table 11 presents the maximum amount of debt the City can legally incur. Table 12 presents the coverage of pledged revenue sources to the total debt they service.

Demographic and Economic Information
The demographic and economic information section provides information to assist the user in 1) understanding the socioeconomic environment within which the City operates, and 2) to provide information that facilitates comparisons of financial statement information over time and among governments. Table 13 presents population and unemployment rate for the City of Scotts Valley as well as the population, personal income, and per capita income for the County of Santa Cruz.

Table 14 presents the top ten employers in terms of number of employees.

Operating Information
The operating information section provides contextual information about the City’s operations and resources to assist readers in using financial statement information to understand and assess the City’s economic condition. Table 15 provides the number of full-time equivalent City employees.

For example, two half-time employees would equal one full-time equivalent employee. Table 16 provides operating statistics for various city departments. Table 17 presents capital assets by city function.
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Financial Trends Information
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CITY OF SCOTTS VALLEY

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
2021 2020 2019 2018
Governmental Activities:

Net Investment in
Capital Assets 25,583,381 $ 24,557,190 $ 23,343,849 $ 24,579,818 $ Restricted 9,782,727 8,334,007 8,053,022 6,479,194
Unrestricted (15,340,391) (16,604,143) (13,857,664) (17,334,416) Total Governmental Activities 20,025,717 $ 16,287,054 $ 17,539,207 $ 13,724,596 $ Business-Type Activities:

Net Investment in
Capital Assets 10,341,552 $ 10,704,508 $ 11,132,780 $ 11,732,371 $ Restricted 746,708 722,596 722,596 2,279,246
Unrestricted (3,098,256) (3,132,213) (3,189,230) (4,594,758) Total Business-Type Activities 7,990,004 $ 8,294,891 $ 8,666,146 $ 9,416,859 $ Primary Government:

Net Investment in
Capital Assets 34,278,715 $ 35,261,698 $ 34,476,629 $ 36,312,189 $ Restricted 10,529,435 9,056,603 8,775,618 8,758,440
Unrestricted (16,792,429) (19,736,356) (17,046,894) (21,929,174) Total Primary Government 28,015,721 $ 24,581,945 $ 26,205,353 $ 23,141,455 $ Fiscal Year
163
143
Table 1
2017 2016 2015 2014 2013 2012
$ 25,069,334 24,866,903 $ 25,777,811 $ 25,257,926 $ 26,144,045 $ $ 22,507,403 6,406,654 5,624,316 4,706,893 5,156,689 5,040,899 9,167,537 (10,085,490) (8,111,236) (6,941,140) 1,067,845 1,132,287 4,841,149 $ 21,188,067 $ 22,582,414 $ 23,543,564 $ 31,482,460 $ 32,317,231 $ 36,516,089 $ 12,161,439 $ 12,877,519 $ 13,535,881 $ 14,021,485 $ 14,323,746 $ 14,717,231 2,170,321 2,150,421 2,155,781 2,298,653 2,443,372 2,298,653 (2,308,944) (644,072) (269,661) 1,835,651 2,469,689 3,260,042 $ 12,022,816 $ 14,383,868 $ 15,422,001 $ 18,155,789 $ 19,236,807 $ 20,275,926 $ 37,028,342 $ 37,946,853 $ 39,313,692 $ 39,279,411 $ 40,467,791 $ 37,224,634 8,576,975 7,774,737 6,862,674 7,455,342 7,484,271 11,466,190 (12,394,434) (8,755,308) (7,210,801) 2,903,496 3,601,976 8,101,191 $ 33,210,883 $ 36,966,282 $ 38,965,565 $ 49,638,249 $ 51,554,038 $ 56,792,015 Fiscal Year
164
144

CITY OF SCOTTS VALLEY

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
2021 2020 2019 2018
Expenses:

Governmental Activities
General Government $ 3,118,926 $ 3,829,666 $ 2,592,377 $ 3,171,897 Public Safety 5,520,484 6,411,762 5,845,546 10,725,905
Planning & Building 1,388,104 1,449,842 1,324,136 1,352,185 Public Works 3,911,638 3,691,894 3,297,140 4,270,705
Redevelopment - - - -
Interest on Long-Term Debt
and Fiscal Agent Charges 336,292 381,759 584,136 541,426 Total Governmental Activities Expense 14,275,444 15,764,923 13,643,335 20,062,118 Business-Type Activities
Wastewater 3,205,747 2,267,855 3,249,610 4,625,969
Recreation Programs 451,235 2,211,353 1,419,413 1,678,885 Total Business-Type Activities Expense 3,656,982 4,479,208 4,669,023 6,304,854 Total Primary Government Expense 17,932,426 $ $ 20,244,131 $ 18,312,358 $ 26,366,972 Program Revenues:

Governmental Activities
Charges for Services
Planning and Building fees $ 1,200,696 $ 834,807 $ 1,095,574 $ 808,419 Police fees 108,240 77,739 161,353 33,428
Senior Center / Community Ctr 99,843 165,304 224,835 147,726 Public Works fees 297,665 342,389 564,862 282,600
Redevelopment - - - -
Other activities - - - 9,047
Operating Grants and Contributions 1,984,759 1,191,527 1,756,499 555,122 Capital Grants and Contributions 267,145 91,670 977,790 1,430,535 Total Gov'tal Activities Program Revenue 3,958,348 2,703,436 4,780,913 3,266,877 Business-Type Activities
Charges for Services
Wastewater fees 2,925,142 3,023,105 2,617,094 2,263,205 Recreational program fees 32,678 710,240 1,092,527 1,179,882 Operating Grants and Contributions - - - -
Capital Grants and Contributions 116,195 31,204 225,624 318,981 Total Business-Type Activities
Program Revenues 3,074,015 3,764,549 3,935,245 3,762,068 Total Primary Gov't Program Revenues 7,032,363 $ $ 6,467,985 $ 8,716,158 $ 7,028,945 Fiscal Year
165
145
Table 2
2017 2016 2015 2014 2013 2012
$ 1,905,906 2,801,847 $ 1,841,382 $ 1,942,629 $ 1,813,920 $ 5,563,325 $ 5,332,955 6,609,761 4,614,596 4,432,039 4,590,667 4,855,212 1,223,947 1,690,507 927,748 804,651 3,157,314 1,185,758 3,352,397 4,104,603 3,025,535 2,951,185 2,924,033 2,961,167 - - - - - -
508,274 575,795 515,679 712,066 627,398 967,148
12,323,479 15,782,513 10,924,940 10,842,570 13,113,332 15,532,610 2,987,794 4,209,282 2,721,258 2,812,627 2,765,435 3,291,469 1,125,041 1,321,072 1,002,901 988,782 930,671 1,410,728 4,112,835 5,530,354 3,724,159 3,801,409 3,696,106 4,702,197 $ 16,436,314 21,312,867 $ 14,649,099 $ 14,643,979 $ 16,809,438 $ 20,234,807 $ $ 481,578 1,352,630 $ 684,540 $ 461,104 $ 405,476 $ 366,747 $ 39,246 33,023 35,756 24,781 27,800 46,587
176,620 187,678 154,877 131,248 126,627 126,143
286,999 413,312 120,999 89,839 137,427 99,328
- - - - - -
314,261 163,755 109,741 185,953 203,234 240,540
362,647 502,181 595,858 612,003 498,658 670,329
471,761 189,924 1,153,630 646,290 439,962 344,033
3,135,312 1,840,303 2,855,401 2,151,218 1,839,184 1,893,707 1,988,203 1,968,900 1,868,388 1,789,141 1,606,806 1,636,584 1,010,276 981,434 962,819 832,749 737,035 810,703
- 86,720 - - - -
58,280 28,989 78,371 59,964 171,084 137,245
3,056,759 3,066,043 2,909,578 2,681,854 2,514,925 2,584,532 $ 6,192,071 $ 4,906,346 $ 5,764,979 $ 4,833,072 $ 4,354,109 $ 4,478,239 166
146

CITY OF SCOTTS VALLEY

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
2021 2020 2019 2018
Net (Expense) Revenue
Governmental Activities (10,317,096) $ (13,061,487) $ (8,862,422) $ (16,795,241) $ Business-Type Activities (582,967) (714,659) (733,778) (2,542,786) Total Primary Government Net Expense (10,900,063) $ (13,776,146) $ (9,596,200) $ (19,338,027) $ General Revenues and Other Changes in Net Position
General Activities
Taxes
Sales tax 6,666,056 $ 4,035,344 $ 4,375,666 $ 3,346,995 $ Property tax 2,142,631 2,204,764 2,564,344 1,761,638
Franchise fees 1,044,899 1,043,116 1,013,694 986,783
Transient Occupancy Tax 1,261,100 1,520,372 1,907,567 1,588,106 Utility users tax 828,420 794,878 778,650 740,358
Other taxes 517,171 257,716 375,389 390,028
Motor Vehicle-in-lieu 1,266,561 1,205,024 1,152,360 1,082,327 Investment Earnings 34,203 243,666 184,232 52,305
Miscellaneous 569,302 310,683 296,319 301,942
Special Item: Sale of Property - -
Transfers (274,584) (299,502) 53,411 81,288
Total Governmental Activities 14,055,759 11,316,061 12,701,632 10,331,770 Business-Type Activities
Investment Earnings 3,493 43,902 36,476 18,117
Miscellaneous - - - -
Transfers 274,584 299,502 (53,411) (81,288)
Total Business-Type Activities 278,077 343,404 (16,935) (63,171) Total Primary Government 14,333,836 $ 11,659,465 $ 12,684,697 $ $ 10,268,599 Extraordinary Gain $ - $ - $ - $ -
Change in Net Position
Governmental Activities $ 3,738,663 $ (1,745,426) $ 3,839,210 $ (6,463,471) Business-Type Activities (304,890) (371,255) (750,713) (2,605,957) Total Primary Government $ 3,433,773 $ (2,116,681) $ 3,088,497 $ (9,069,428) Fiscal Year
167
147
Table 2 (concluded)
2017 2016 2015 2014 2013 2012
$ (10,483,176) (12,647,201) $ (8,069,539) $ (8,691,352) $ (11,274,148) $ (13,638,903) $ (1,046,792) (2,473,595) (814,581) (1,119,555) (1,181,181) (2,117,665) $ (11,529,968) (15,120,796) $ (8,884,120) $ (9,810,907) $ (12,455,329) $ (15,756,568) $ $ 3,534,523 3,289,289 $ 3,156,258 $ 2,234,797 $ 1,976,580 $ 1,887,496 $ 1,313,578 1,757,571 1,821,109 1,738,055 1,855,084 2,143,174 972,951 994,614 948,949 798,928 798,514 770,730
1,011,432 1,218,063 1,058,996 926,199 780,648 712,605
694,552 747,585 654,411 637,547 602,892 600,478
529,092 438,564 460,091 397,325 372,313 345,945
960,758 1,019,933 897,721 839,118 828,062 840,480
38,666 29,248 81,574 20,406 60,497 85,866
466,529 1,110,461 588,801 294,999 444,698 450,130
- 746,924 - - - -
(55) (99,398) (10,936) (30,793) (134,929) (1,111,294)
11,252,854 9,522,026 9,656,974 7,856,581 7,584,359 6,725,610 13,145 8,604 5,842 7,744 7,133 13,548
- - - - - -
99,398 55 10,936 30,793 134,929 1,111,294
112,543 8,659 16,778 38,537 142,062 1,124,842
$ 11,365,397 $ 9,530,685 $ 9,673,752 $ 7,895,118 $ 7,726,421 $ 7,850,452 $ - $ - $ - $ - $ 4,552,819 - $
$ (1,394,347) $ (961,150) $ 1,587,435 $ (834,771) $ (3,689,789) $ (2,360,474) (2,361,052) (1,038,133) (797,803) (1,081,018) (1,039,119) (992,823) $ (3,755,399) $ (1,999,283) $ 789,632 $ (1,915,789) $ (4,728,908) $ (3,353,297) 168
148

CITY OF SCOTTS VALLEY

FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
2021 2020 2019 2018
General Fund
Nonspendable 139,532 $ 139,532 $ 139,532 $ 100,487 $
Restricted 33,184 3,397 101,461 3,962,916
Unassigned 6,859,758 3,938,058 4,897,391
Total General Fund 7,032,474 $ 4,080,987 $ 5,138,384 $ 4,063,403 $ All Other Governmental Funds
Restricted 9,749,543 $ 8,330,610 $ 7,951,561 $ 5,618,311 $ Assigned 1,330,504 1,385,628 1,299,499 1,107,190
Unassigned (289,405) (430,161) (65,377) (55,117)
Total All Other Governmental Fund $ 9,286,077 10,790,642 $ 9,185,683 $ 6,670,384 $ Total All Governmental Funds 17,823,116 $ 13,367,064 $ 14,324,067 $ 10,733,787 $ Fiscal Year
169
149
Table 3
2017 2016 2015 2014 2013 2012
$ 99,003 99,356 $ 98,920 $ 211,940 $ 433,352 $ 433,346 $ 2,896,849 4,131,884 2,830,280 1,507,677 1,434,328 2,719,892 $ 2,995,852 4,231,240 $ 2,929,200 $ 1,719,617 $ 1,867,680 $ 3,153,238 $ $ 4,464,158 5,264,677 $ 4,471,522 $ 4,882,321 $ 4,734,977 $ 7,081,826 $ 1,058,584 1,042,621 1,031,061 1,025,646 1,297,844 1,474,699 (79,691) (86,638) (68,502) (61,445) (65,610) (78,617)
$ 6,227,607 $ 5,436,104 $ 5,434,081 $ 5,846,522 $ 5,967,211 $ 8,477,908 $ 8,431,956 10,458,847 $ $ 8,363,281 $ 7,566,139 $ 7,834,891 $ 11,631,146 170
150

CITY OF SCOTTS VALLEY

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

LAST TEN FISCAL YEARS
2021 2020 2019 2018
Revenues:

Taxes and Assessments 14,120,985 $ 11,117,073 $ 12,167,669 $ 10,314,528 $ Intergovernmental Revenues 1,657,378 1,048,976 1,744,402 803,971 Fees and Services 1,768,492 1,376,874 2,658,009 1,578,574 Fines and Forfeitures 17,510 31,442 44,265 35,013
Contributions, Non-Gov't 1,653 8,505 18,468 167,840
Facility/Building Rental 155,255 112,354 288,912 32,760 Investment Earnings 34,156 226,309 169,847 93,966
Miscellaneous Revenues 599,111 315,312 336,900 649,132
Total Revenues 18,354,540 14,236,845 17,428,472 13,675,784 Expenditures:

Current:

General Government 2,983,275 3,204,004 2,434,443 2,134,089 Public Safety 5,030,108 5,621,165 5,238,107 5,217,774
Planning and Building 1,336,531 1,365,244 1,277,550 1,089,776 Public Works 1,946,247 1,965,277 2,026,962 2,307,435
Capital Outlay 2,060,807 1,772,238 1,901,832 1,757,388
Tax Increment Pass-Through - - - -
Debt Service
Principal 815,000 870,000 630,000 600,000
Interest/Finance Charges 346,896 273,769 358,110 375,670 Bond Issuance Costs - - - -
Total Expenditures 14,518,864 15,071,697 13,867,004 13,482,132 Excess(Deficit) of Revenues over
(under) Expenditures 3,835,676 (834,852) 3,561,468 193,652 Other Financing Sources (Uses):

Transfers In 732,189 694,017 1,270,373 1,442,138
Transfers Out (1,006,773) (993,519) (1,216,962) (1,360,850) Proceeds from Debt 9,460,000 - - -
Premium on Debt Issued 356,636 - - -
Payment to Escrow (9,639,285) - - -
Sale of Real Property - - - -
Net Other Sources (Uses) (274,584) (122,151) 53,411 81,288 Extraordinary Gain - - - -
Change in Fund Balances $ 3,561,092 $ (957,003) $ 3,614,879 $ 274,940 Debt Services as a Percentage of
Noncapital Expenditures 9% 9% 8% 8%
Fiscal Year
171
151
Table 4
2017 2016 2015 2014 2013 2012
$ 9,362,093 9,675,857 $ 9,444,126 $ 8,052,339 $ 7,598,884 $ 7,748,024 $ 152,753 288,725 1,062,025 352,004 110,828 217,028
1,192,986 2,344,647 1,285,952 1,183,852 1,187,315 1,018,433 35,411 37,680 70,470 41,731 54,438 57,815
2,306 2,865 19,911 2,167 46,003 14,340
44,910 32,760 22,500 30,000 32,400 32,100
54,860 63,020 92,967 24,865 68,205 97,544
517,064 1,378,011 525,360 473,808 613,979 542,296
11,362,383 13,823,565 12,523,311 10,160,766 9,712,052 9,727,580 1,942,389 2,216,039 1,814,779 1,850,794 1,763,970 5,407,571 4,927,713 4,960,402 4,511,889 4,223,936 4,297,153 4,495,974 1,182,716 1,336,664 929,264 756,737 4,214,913 1,133,940 1,979,404 1,925,211 1,753,952 1,753,449 1,696,000 1,668,457 446,373 1,193,706 1,902,961 764,110 524,019 687,698
- - - - - -
470,000 465,000 445,000 4,995,000 290,353 262,871
342,178 350,058 357,388 354,808 586,970 745,957
- - 304,891 - 158,332 -
12,444,200 11,293,653 11,715,233 15,003,725 13,373,378 14,560,800 1,379,365 68,730 808,078 (4,842,959) (3,661,326) (4,833,220) 1,616,826 725,455 1,228,612 1,316,588 900,381 4,965,711 (1,716,224) (725,510) (1,239,548) (1,347,381) (1,035,310) (6,077,005) - - 4,605,000 - 4,460,000 -
- - - - - -
- - - - - -
746,924 - - - - -
647,526 (55) (10,936) 4,574,207 (134,929) 3,348,706
- - - - 326,046 -
$ 2,026,891 $ 68,675 $ 797,142 $ (268,752) $ (3,796,255) $ (1,158,468) 7% 8% 8% 38% 7% 7%
172
152
173
153
Revenue Capacity Information
174
154
CITY OF SCOTTS VALLEY Table 5

ASSESSED VALUES OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
Total
Commercial Taxable (1)
Fiscal Residential and Other Assessed General
Year Property Property Value Tax Rate
2012 1,413,942,688 642,128,306 2,056,070,994 1.00%
2013 1,414,040,184 598,441,394 2,012,481,578 1.00%
2014 1,483,067,171 564,469,568 2,047,536,739 1.00%
2015 1,627,120,418 571,942,811 2,199,063,229 1.00%
2016 1,753,326,658 601,424,458 2,354,751,116 1.00%
2017 1,850,625,172 647,799,289 2,498,424,461 1.00%
2018 1,966,471,659 684,245,880 2,650,717,539 1.00%
2019 2,083,096,965 736,609,304 2,819,706,269 1.00%
2020 2,185,062,044 759,726,144 2,944,788,188 1.00%
2021 2,309,749,776 790,738,571 3,100,488,347 1.00%
(1) Property tax rates are limited to $1.00 per $100.00 assessed valuation based on a June 1978 state constitutional amendment (Proposition 13). The tax rate (1%) is levied by the County and apportioned to local agencies according to a formula prescribed by the State legislature.

The City's share of the 1% property tax rate for its own General Fund is less than 6.5%. The City established a Redevelopment Agency in 1980. The Agency's Redevelopment Plan was adopted in November 1990. The City's General Fund does not receive any property tax from the tax revenues generated above the base year amount (tax increment revenue). The Agency entered into pass-through agreements with various governmental entities. Approximately 47% of the total tax increment revenue is paid out per these agreements. Another 20% is restricted for low and moderate income housing purposes. California state law eliminated redevelopment agencies effective February 1, 2012. The former tax increment revenue is being collected by the County of Santa Cruz and distributed to the successor redevelopment agencies to the extent of their enforceable obligations. Any revenue collected in excess of the amount of enforceable obligations is distributed to the taxing entities in the same proportion that they receive property taxes.

Source: Santa Cruz County Assessor
HdL 2019/20 CAFR Statistical Basic Package for the City of Scotts Valley 175
155
CITY OF SCOTTS VALLEY Table 6

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(2) (2)
Scotts
(1) Valley Cabrillo
General Unified Community
Fiscal Tax School College
Year Rate District District
2012 1.00% 0.048 0.039
2013 1.00% 0.046 0.040
2014 1.00% 0.041 0.040
2015 1.00% 0.075 0.037
2016 1.00% 0.051 0.037
2017 1.00% 0.084 0.033
2018 1.00% 0.084 0.024
2019 1.00% 0.069 0.021
2020 1.00% 0.077 0.025
2021 1.00% 0.077 0.025
(1) See explanation on Table 5. Source: Santa Cruz County Treasurer / Tax Collector Overlapping Rates
176
156

CITY OF SCOTTS VALLEY

PRINCIPAL PROPERTY TAX PAYERS

LAST TEN FISCAL YEARS
Percentage
Assessed of Total
Valuation Assessed
Taxpayer (in thousands) Rank Valuation
Ashford Scotts Valley 48,197 $ 1 1.55%
FIT Ren Oak Tree Villa, LLC 28,994 2 0.94%
Carefree Communities California 25,484 3 0.82%
Scotts Valley Hotel 24,713 4 0.80%
Granite Creek Business Center 19,500 5 0.63%
RP and JP 16,565 6 0.53%
Fox Factory Inc 16,450 7 0.53%
Broughton Land LLC 14,155 8 0.46%
Gilbert Trustees 13,052 9 0.42%
Ow, David L. Trustee, et al. 11,598 10 0.37%
McNellis, John E - - -
American Yiluen Dev & Holdings - - -
Comcast - - -
Graham Family Trust - - -
1440 DEVCO, LLC - - -
Kaiser Foundation - - -
Ritchie, T - - -
Bethany College of Assemblies - - -
Threshold Enterprises - - -
Scotts Valley Associates - - -
LBUBS 2004-Enterprise Way LP - - -
Scarborough, Nena, TC, ETAL - - -
S & A Ito Family Partnership - - -
Sammie Rae Abitbol, LLC - - -
Appenrodt Living Trust - - -
CCMS 2005-CD1 La Madrona LP - - -
Santa Cruz-Monterey-Merced - - -
Seagate Technology, LLC - - -
Aviza Technology - - -
General Elec Cr Equities - - -
Top Ten Totals $ 7.04% 218,708
Note: Dollar amounts are in thousands.

Source: Santa Cruz County Assessor
HDL 2019/20 CAFR Statistical Basic Package for the City of Scotts Valley. 2021
177
157
CITY OF SCOTTS VALLEY Table 7

PRINCIPAL PROPERTY TAX PAYERS

LAST TEN FISCAL YEARS
Percentage Percentage
Assessed of Total Assessed of Total
Valuation Assessed Valuation Assessed
Taxpayer n thousands) Rank Valuation (in thousands) Rank Valuation Ashford Scotts Valley 42,584 $ 1 1.45% 41,811 $ 1 1.48% FIT Ren Oak Tree Villa, LLC 28,425 2 0.97% 27,868 3 0.99% Scotts Valley Hotel 28,303 3 0.96% 28,505 2 1.01%
Carefree Communities California 20,171 4 0.68% 19,786 4 0.70% Granite Creek Business Center 19,117 5 0.65% 18,742 5 0.66% RP and JP 16,240 6 0.55% - - -
Fox Factory Inc 15,135 7 0.51% 14,356 8 0.49%
Broughton Land LLC 13,878 8 0.47% 13,438 9 0.48%
Gilbert Trustees 12,796 9 0.43% - - -
Kaiser Foundation 11,598 10 0.39% - - -
McNellis, John E - - - 15,921 6 0.58%
American Yiluen Dev & Holding - - - 13,475 7 0.51%
Comcast - - - 12,762 10 0.45%
Graham Family Trust - - - - - -
1440 DEVCO, LLC - - - - - -
Ow, David L. Trustee, et al. - - - - - -
Ritchie, T - - - - - -
Bethany College of Assemblies - - - - - -
Threshold Enterprises - - - - - -
Scotts Valley Associates - - - - - -
LBUBS 2004-Enterprise Way LP - - - - - -
Scarborough, Nena, TC, ETAL - - - - - -
S & A Ito Family Partnership - - - - - -
Sammie Rae Abitbol, LLC - - - - - -
Appenrodt Living Trust - - - - - -
CCMS 2005-CD1 La Madrona LP - - - - - -
Santa Cruz-Monterey-Merced - - - - - -
Seagate Technology, LLC - - - - - -
Aviza Technology - - - - - -
General Elec Cr Equities - - - - - -
Top Ten Totals $ 7.05% 206,664$ 7.34% 208,247
Note: Dollar amounts are in thousands.

Source: Santa Cruz County Assessor
HDL 2019/20 CAFR Statistical Basic Package for the City of Scotts Valley. 2020 2019
178
158

CITY OF SCOTTS VALLEY

PRINCIPAL PROPERTY TAX PAYERS

LAST TEN FISCAL YEARS
Percentage Percentage
Assessed of Total Assessed of Total
Valuation Assessed Valuation Assessed
Taxpayer (in thousands) Rank Valuation (in thousands) Rank Valuation Ashford Scotts Valley 41,008$ 1 1.55% 39,063$ 1 1.56%
FIT Ren Oak Tree Villa, LLC 27,321 2 1.03% 27,163 2 1.09% Scotts Valley Hotel - - - - - -
Carefree Communities California 19,412 3 0.73% - - -
Granite Creek Business Center 18,375 4 0.69% 13,949 4 0.56% RP and JP - - - - - -
Fox Factory Inc 11,009 10 0.42% - - -
Broughton Land LLC 11,493 9 0.43% 12,537 8 0.50%
Gilbert Trustees 12,299 8 0.46% 12,058 9 0.48%
Kaiser Foundation - - - - - -
McNellis, John E - - - - - -
American Yiluen Dev & Holdings 13,475 7 0.51% 13,210 6 0.53% Comcast - - - 13,609 5 0.54%
Graham Family Trust 16,639 5 0.63% 15,303 3 0.61%
1440 DEVCO, LLC 13,498 6 0.51% 13,091 7 0.52%
Ow, David L. Trustee, et al. - - - 10,590 10 0.42%
Ritchie, T - - - - - -
Bethany College of Assemblies - - - - - -
Threshold Enterprises - - - - - -
Scotts Valley Associates - - - - - -
LBUBS 2004-Enterprise Way LP - - - - - -
Scarborough, Nena, TC, ETAL - - - - - -
S & A Ito Family Partnership - - - - - -
Sammie Rae Abitbol, LLC - - - - - -
Appenrodt Living Trust - - - - - -
CCMS 2005-CD1 La Madrona LP - - - - - -
Santa Cruz-Monterey-Merced - - - - - -
Seagate Technology, LLC - - - - - -
Aviza Technology - - - - - -
General Elec Cr Equities - - - - - -
Top Ten Totals $ 6.95% 170,573$ 6.82% 184,529
2018 2017
179
159
Table 7
Continued
Percentage Percentage Percentage
Assessed of Total Assessed of Total Assessed of Total
Valuation Assessed Valuation Assessed Valuation Assessed n thousands) Rank Valuation (in thousands) Rank Valuation (in thousands) Rank Valuation $ 7 0.49% 11,853$ 11,527 5 0.54% - $ - -
26,787 1 1.14% 21,241 1 0.97% 21,293 2 1.04%
- - - - - - - - -
- - - - - - - - -
14,683 3 0.62% 12,751 4 0.58% 12,751 4 0.62%
- - - - - - - - -
- - - - - - - - -
12,450 6 0.53% 11,538 6 0.52% 10,662 5 0.52%
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
13,012 5 0.55% - - - - - -
- - - - - - - - -
15,073 2 0.64% - - - - - -
- - - 11,015 7 0.50% 10,125 8 0.49%
10,431 8 0.44% 10,227 9 0.47% 10,180 7 0.50%
13,713 4 0.58% - - - - - -
10,374 9 0.44% - - - - - -
10,239 10 0.43% - - - - - -
- - - 16,514 2 0.75% 16,444 3 0.80%
- - - 15,250 3 0.69% 29,628 1 1.45%
- - - 10,357 8 0.47% 10,521 6 0.51%
- - - 9,604 10 0.44% 9,560 9 0.47%
- - - - - - 8,129 10 0.40%
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
$ 5.86% 130,350$ 5.92% 139,293$ 6.82% 138,289
2016 2015 2014
180
160
CITY OF SCOTTS VALLEY Table 7
PRINCIPAL PROPERTY TAX PAYERS Concluded

CITY OF SCOTTS VALLEY

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
182
162
183
163
Debt Capacity Information
184
164
CITY OF SCOTTS VALLEY Table 9
2020-21 Assessed Valuation $ 3,100,488,347
City's Share
of Direct and
Total Debt Overlapping Debt
June 30, 2021 June 30, 2021
Direct and Overlapping Tax and Assessment Debt:

Cabrillo Joint Community College District $ 109,958,214 6.062% 6,665,667 Scotts Valley Unified School District 37,220,000 65.128% 24,240,642 Santa Cruz High School District 108,795,968 0.0003% 326 City of Scotts Valley Community Facilities District 2,595,000 100.00% 2,595,000 Santa Cruz Libraries Facilities Financing Authority CFD 38,630,000 6.754% 2,609,070 Total Direct and Overlapping Tax and Assessment Debt 297,199,182 36,110,706 Overlapping General Fund Debt:

Santa Cruz County Certificates of Participation 65,060,193 6.1080% 3,973,877 Santa Cruz County Office of Education Certificates of Participation 6.1080% 475,825 7,790,192 Scotts Valley Unified School District Certificates of Participation 9,670,000 65.1280% 6,297,878 Total Direct & Overlapping General Fund Debt 82,520,385 10,747,579 Overlapping Tax Increment Debt
Successor Agency 10,550,600 100.00% 10,550,600
Total Overlapping Tax Increment Debt 10,550,600 10,550,600 City Direct Debt:

City of Scotts Valley Certificates of Participation 8,510,000 100.00% 8,510,000 (2) City of Scotts Valley Pension Obligations 1,615,000 100.00% 1,615,000 City of Scotts Valley Water District Installment Note 70,000 100.00% 70,000 Total Direct Debt 10,195,000
Total Direct Debt 10,195,000
Total Overlapping Debt 57,408,885
Combined Total Debt $ 67,603,885 (3)
Ratios to 2020-21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.85%
Total Direct Debt 0.33%
Combined Total Debt 2.18%
Source: California Municipal Statistics, Inc.

NOTE: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city.

This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government.
(1) The precentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable precentages were estimated by determining the portion of the county's taxable assessed value that is within the government's boundaries and dividing it by the county's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations.
(3) Exculdes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations.

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2021
Percentage
Applicable (1)
185
165
CITY OF SCOTTS VALLEY Table 10

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Certificates Tax Pension Total Percentage
Fiscal of Revenue Allocation Obligation Installment Primary of Personal Per Year Participation Bonds Bonds Bond Notes Government Income Capita 2012 6,045 - - 4,460 - - 10,505 2.12% 902
2013 5,936 - - 4,280 - - 10,216 2.02% 875
2014 5,856 - - 3,970 - - 9,826 1.92% 822
2015 5,649 - - 3,655 110 - 9,414 1.88% 798
2016 5,512 - - 3,335 105 - 8,952 1.72% 737
2017 5,451 - - 3,010 100 - 8,561 1.51% 704
2018 6,191 - - 2,675 95 - 8,961 1.58% 735
2019 5,911 - - 2,335 85 - 8,331 1.41% 690
2020 8,955 - - 1,980 75 - 11,010 1.68% 942
2021 8,510 - - 1,615 70 - 10,195 1.53% 867
Notes: Dollar amounts are in thousands, except for per capita.

See note (3) on Table 12 regarding the above Revenue Bonds.

Details of the City's outstanding debt can be found in Note 5 to the financial statements.

The City of Scotts Valley has no general bonded debt.

Source: City of Scotts Valley Finance Department
Business-Type
Governmental Activities Activities
Installment
Notes
186
166
Table 11
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Assessed Valuation 3,100 $ 2,944$ 2,820$ 2,651$ 2,498$ 2,355$ 2,199$ 2,047$ 2,035$ 2,056$ Redevelopment
Incremental Valuation - - - - - - - - - -
Net Assessed Valuation 3,100 $ 2,944$ 2,820$ 2,651$ 2,498$ 2,355$ 2,199$ 2,047$ 2,035$ 2,056$ Debt Limit (15%) $ 442$ 423$ 398$ 375$ 353$ 330$ 307 465 $ 305 $ 308 $ Total Debt Applicable
to Limit - - - - - - - - - -
Legal Debt Margin $ 442$ 423$ 398$ 375$ 353$ 330$ 307 465 $ 305 $ 308 $ Note: Amounts are in millions.

Source: Santa Cruz County Assessor's Office

CITY OF SCOTTS VALLEY

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
Fiscal Year
187
167
CITY OF SCOTTS VALLEY Table 12

PLEDGED REVENUE COVERAGE

LAST TEN FISCAL YEARS
Special
Fiscal Assessment
Year Collections Principal Interest Coverage
2012 1,133,951 605,000 369,952 1.16
2013 1,273,669 725,400 256,505 1.30
2014 799,962 755,400 220,848 0.82
2015 416,039 220,000 185,588 1.03
2016 398,619 225,000 177,623 0.99
2017 414,002 230,000 167,948 1.04
2018 403,145 245,000 157,148 1.00
2019 412,299 255,000 147,124 1.03
2020 444,571 270,000 137,595 1.09
2021 423540 275,000 126,965 1.05
Source: City of Scotts Valley Finance Department
Special Assessment Bonds
Debt Service
188
168
189
169
Demographic and Economic
Information
190
170
CITY OF SCOTTS VALLEY Table 13
Personal Per Capita
Fiscal Income Personal Unemployment
Year Population (in thousands) Income Rate
(1) (2) (2) (3)
2012 11,641 494,836 42,508 5.9%
2013 11,678 504,723 43,220 4.7%
2014 11,954 510,603 42,714 4.3%
2015 11,800 501,476 42,498 7.9%
2016 12,143 520,659 42,877 6.8%
2017 12,163 566,632 46,586 6.3%
2018 12,195 566,915 46,487 4.6%
2019 12,082 589,169 48,764 3.8%
2020 11,693 564,018 55,932 2.7%
2021 11,755 666,417 56,692 6.2%
Source: (1) California State Department of Finance / HdL 2019/20 CAFR Statistical Package (2) HDL 2019/20 CAFR Statistical Basic Package for the City of Scotts Valley.

Figures are for the preceding calendar year (e.g. Fiscal Year 2020 is 2019 calendar year data). Some prior period numbers were revised by HDL and have been restated here.
(3) https://labormarketinfo.edd.ca.gov

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS
191
171

CITY OF SCOTTS VALLEY

PRINCIPAL EMPLOYERS

LAST TEN FISCAL YEARS
Number of Number of
Employer Rank Rank
Central California Alliance For Health 509 1 9.97% 395 1 7.50% Threshold Enterprises Ltd 435 2 8.52% 361 2 6.85%
Fox Factory Inc 301 3 5.89% 336 3 6.38%
Bay Photo Lab 203 4 3.97% 326 4 6.19%
Zero Motorcycles, Inc. 179 5 3.50% 169 5 3.21%
Bell Sports, Inc. 101 6 1.98% 141 6 2.68%
The Camp 91 7 1.78% 138 7 2.62%
The Permanente Medical Group, Inc. 83 8 1.63% 138 8 2.62% Nob Hill Foods #620 72 9 1.41% 91 9 1.73%
Oxford/X-Ray Technology Group 60 10 1.17% 79 10 1.50%
Scarborough Lumber & Building 60 - - - - -
Safeway Stores Inc. #300 57 - - - - -
Brookdale Senior Living Solutions 55 - - - - -
Digital Dynamics Inc 52 - - - - -
Canepa 50 - - - - -
Comcast Of Ca/Ma/Mi/Utah, Llc 50 - - - - -
1440 Multiversity 46 - - - - -
The Perfumers Apprentice 42 - - - - -
Tradin Organics Usa, Llc 40 - - - - -
Paystand, Inc. 37
Total 2,523 54.54% 2,174 47.00%
Source: HdL business license consultant
Employees Employment Employees Employment
of Total City of Total City
Percentage Percentage
2021 2020
192
172
Table 14
Number of Number of Number of Number of
Rank Rank Rank Rank
568 1 11.38% 515 1 11.13% 573 1 11.49% 621 1 10.63%
419 2 8.40% 389 2 8.41% 372 2 7.46% 325 2 6.02%
297 3 5.95% 305 3 6.59% 278 3 5.57% 276 3 5.49%
- - - - - - 226 4 4.53% 201 4 4.25%
152 4 3.05% - - - - - - - - -
136 6 2.72% 127 5 2.75% 119 6 2.39% 133 7 2.13%
136 5 2.72% 130 4 2.81% 154 5 3.09% 166 6 2.96%
128 7 2.56% 114 6 2.46% 102 7 2.04% 98 8 1.75%
77 9 1.54% 68 8 1.47% 83 8 1.66% 77 9 1.58%
-- - - - - - - - - - -
79 8 1.58% - - - - - - - - -
71 10 1.42% 69 7 1.49% - - - - - -
- - - 68 9 1.47% - - - - - -
- - - 66 10 1.43% 63 9 1.26% - - -
- - - - - - 61 10 1.22% 73 10 1.54%
- - - - - - - - 184 5 3.78%
-- - - - - - - - - - -
-- - - - - - - - - - -
-- - - - - - - - - - -
2,063 44.60% 1,851 40.01% 2,031 40.71% 2,154 40.13%
Employees Employment
of Total City
Employees Employment Employees Employment Employees Employment of Total City of Total City of Total City
Percentage Percentage Percentage Percentage
2019 2018 2017 2016
193
173

CITY OF SCOTTS VALLEY

PRINCIPAL EMPLOYERS

LAST TEN FISCAL YEARS
Number of Number of
Employer Rank Rank
Threshold Enterprises, LTD 503 1 10.63% 503 1 10.69%
Central Coast Alliance 285 2 6.02% 241 3 5.12%
Fox Racing Shox 260 3 5.49% 243 2 5.17%
Bay Photo Lab 201 4 4.25% 226 4 4.80%
1440 OPCO, LLC - - - - - -
Universal Audio, Inc. 101 7 2.13% 86 8 1.83%
Bell Sports, Inc 140 6 2.96% 158 6 3.36%
Zero Motorcycles 83 8 1.75% 72 10 1.53%
The Camp 75 9 1.58% 74 9 1.57%
Permanente Medical Group - - - - - -
Brookdale Senior Living - - - - - -
Oxford/X-ray Technology Grp - - - - - -
Safeway Stores, Inc. - - - - - -
Nob Hill Foods - - - - - -
Oak Tree Villa SHP 73 10 1.54% - - -
Seagate Technology 179 5 3.78% 189 5 4.02%
Hilton -Scotts Valley - - - 98 7 2.08%
Comcast Cable - - - - - -
Embarcardero Technologies - - - - - -
Total 1,900 40.13% 1,890 40.17%
Employees Employment Employees Employment
Percentage Percentage
of Total City of Total City
2015 2014
194
174
Table 14 (Concluded)
Number of Number of
Rank Rank
388 1 8.62% 402 1 9.71%
210 4 4.67% 180 2 4.35%
217 3 4.82% 130 5 3.14%
220 2 4.89% - - -
- - - - - -
81 7 1.80% 71 8 1.71%
161 6 3.58% 136 4 3.29%
- - - - - -
72 9 1.60% 68 10 1.6
- - - 70 9 1.69%
- - - - - -
- - - - - -
- - - - - -
- - - - - -
72 10 1.60% - - -
177 5 3.93% 177 3 4.28%
- - - 80 6 1.93%
74 8 1.64% 76 7 1.84%
- - - 70 9 1.69%

37.15% 1,460 1,672 33.57%
Employees Employment Employees Employment
Percentage Percentage
of Total City of Total City
2013 2012
195
175
Operating Information
196
176
197
177
CITY OF SCOTTS VALLEY Table 15

FULL-TIME EQUIVALENT POSITIONS

LAST TEN FISCAL YEARS
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Function / Program
General Government
Legislative 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Administration 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Finance 2.85 2.85 3.65 2.85 2.85 2.85 2.85 3.35 3.35 3.35 Police
Officers 19.00 20.00 19.00 19.00 19.00 19.00 19.00 19.00 19.00 19.00 Dispatch and Support 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 Planning 2.00 2.00 3.00 2.00 3.00 3.00 3.50 3.50 3.50 3.50 Building - - - - - 3.00 1.00 1.00 1.00 1.00
Public Works
Engineering 4.00 4.00 4.00 4.00 4.00 3.10 3.30 3.30 3.30 3.30 Street Maintenance 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 Vehicle Maintenance - - 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 Park Maintenance 1.30 1.30 1.30 1.30 1.30 1.30 2.30 2.30 2.30 2.30 Building Maintenance 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 Wastewater Treatment Plant 6.15 6.15 6.15 6.15 6.15 7.05 7.05 6.35 7.35 7.35 Recreation 5.50 5.70 1.00 5.70 5.70 5.00 5.00 5.00 5.00 6.00 Redevelopment/Affordable Hsg - - - - - - - - -
Total 54.40 55.70 55.70 55.70 56.70 56.00 58.70 58.50 59.50 60.50 Source: City of Scotts Valley Annual Budget
Fiscal Year
198
178
Table 16
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Police:

Stations 1 1 1 1 1 1 1 1 1 1
Emergency Vehicles 15 15 15 15 15 15 15 15 15 15
Public Works:

Streets (miles) 35 35 35 35 35 35 35 35 35 35
Streetlights 212 212 212 212 212 212 212 212 212 212
Traffic Signals 16 16 16 16 16 16 16 16 16 16
Senior Center 1 1 1 1 1 1 1 1 1 1
Community Center 1 1 1 1 1 1 1 1 1 1
Wastewater
Treatment Plant 1 1 1 1 1 1 1 1 1 1
Recreation
Parks / Playgrounds 6 6 6 6 6 6 6 6 6 6
Soccer Fields 3 3 3 3 3 3 3 3 3 3
Tennis Courts 4 4 4 4 4 4 4 4 4 4
Source: Various City Departments

CITY OF SCOTTS VALLEY

CAPITAL ASSET STATISTICS BY FUNCTION / PROGRAM

LAST TEN FISCAL YEARS
Fiscal Year
199
179

CITY OF SCOTTS VALLEY

OPERATING INDICATORS BY FUNCTION / PROGRAM

LAST TEN FISCAL YEARS
Fiscal Year
2021 2020 2019 2018
General Government
Number of Citizen Complaints Received 19 14 28 15
Police
Total Incident Calls 19,065 20,744 20,820 15,151
Number of Citations Written 675 1,398 1,232 638
Number of Arrests 400 667 547 379
Planning
Planning Applications Submitted 99 49 92 95
Lot Line Adjustment Apps Processed - - 2 -
Building
Number of Building Inspections 1,676 2,048 2,278 2,249
Building Permits Submitted 452 460 388 515
Building Permits Issued 407 457 379 496
Public Works
Building Permit Applications Processed 20 21 28 43
Encroachment Permits Processed 123 78 56 53
Transportation Permits Processed 44 13 63 66
Sewer Allocations Issued 2 1 15 7
Subdivision Maps Recorded 3 2 2 3
Wastewater Treatment Plant
(all amounts in thousands of gallons)
Total Flow 280,168 242,700 285,680 203,670
Highest Average Daily Flow 1,165 1,056 1,867 768
Lowest Average Daily Flow 678 673 166 610
Source: Various City departments
200
180
Table 17
2017 2016 2015 2014 2013 2012
23 23 16 9 19 14
14,425 18,297 18,310 17,748 18,356 13,732
1,447 1,194 1,108 1,095 1,299 949
589 499 468 447 535 479
112 112 109 93 81 101
- - - - - -
3,766 3,299 1,373 1,122 1,945 727
402 334 332 295 251 454
382 334 285 285 227 367
62 58 59 28 25 17
64 43 24 25 20 36
84 67 38 17 55 37
10 6 42 17 49 7
1 2 1 4 2 -
253,914 251,869 288,294 287,580 305,680 325,770
865 843 882 1,060 1,113 1,394
508 771 707 737 788 506
201
AGENDA ITEM 3
DATE: 03-16-2022
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: March 16, 2022
TO: Honorable Mayor and City Council
FROM: Taylor Bateman, Community Development Director
Jonathan Kwan, City Contract Consultant
APPROVED: Mali LaGoe, City Manager
SUBJECT: APPROVE ANNUAL PROGRESS REPORT AS SUBMITTED

TO THE DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT

SUMMARY OF ISSUE
California Government Code 65400(a)(2) requires the City to provide an annual report, titled an Annual Progress Report (APR), to the City Council, the State Office of Planning and Research (OPR), and the Department of Housing and Community Development (HCD) that includes the following:
(A) The status of the adopted Housing Element and progress in its implementation. (B) The progress in meeting the City’s share of regional housing needs and local efforts to remove governmental constraints to the maintenance, improvement, and development of housing. The housing element portion of the annual report is prepared using standards, forms, and definitions adopted by HCD. (C) The number of housing development applications received in the prior year. (D) The number of units included in all development applications in the prior year. (E) The number of units approved and disapproved in the prior year. (F) The degree to which the General Plan complies with the guidelines developed by OPR.
(G) A listing of sites rezoned to accommodate that portion of the city’s or county’s share of the regional housing need.
(H) The number of net new units of housing, including both rental housing and for-sale housing, that have been issued a completed entitlement, a building permit, or a certificate of occupancy, thus far in the housing element cycle, and the income category, by area median income category, that each unit of housing satisfies. (I) The number of applications submitted, approvals granted, building permits issued, and number of units constructed pursuant to Senate Bill 35 (2018).

The 2021 Annual Progress Report includes the following tables:

Table A contains data on the number of housing development applications that were submitted and deemed complete in 2021. The number of proposed units in all of the applications deemed complete is 28 units.
001
AGENDA ITEM 3
DATE: 03-16-2022
Tables A2 contains data on the discretionary housing development applications that were approved (entitled), all building permits issued for housing development and housing construction completed. This data is identified by both household income level, street address and tenure. Table A2 data shows that:
▪ 28 units were approved for entitlements,
▪ 36 units were issued building permits, and
▪ 20 units had building permits “signed off” and finalized. These units were primarily located in The Cove and The Terrace developments.

Table B includes data on the household income levels of the units in 2021 that were issued building permits (36 units). The table also includes data for 2015-2020 by unit count and income level as reported in the APRs for those years. Further, this table demonstrates the City’s progress in meeting its share of the Regional Housing Needs Allocation (RHNA). Please note that only units that secured building permits in 2021 are counted towards meeting the RHNA. In 2021, there were building permits issued for 6 low-income units, all of which are a part of the Acorn Commons project and are “credited” towards the City’s RHNA goals. All the remaining units that were issued a building permit in 2021 were above-moderate income units.

Tables C, E, F, G and H are not applicable to the City of Scotts Valley.

Table D contains information on the status and progress of Housing Element program and policy implementation for all programs described in the 2016 Housing Element.

Summary Table provides a summary of housing units for which applications were submitted and building permits issued in 2021.

FISCAL IMPACT
There is no fiscal impact as there is no cost to the City.

STAFF RECOMMENDATION
It is recommended that the City Council receive public comments and approve the 2021 Annual Progress Report and authorize the submittal of the 2021 Annual Progress Report (APR) to the Department of Housing and Community Development (HCD) and State Office of Planning and Research (OPR).

TABLE OF CONTENTS PAGES
2021 Annual Progress Report ........................................................................................ 3 002
Jurisdiction Scotts Valley ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2021 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 5th Cycle 12/31/2015 - 12/31/2023 Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining Application Status Notes
2 34 6 7 8 9 11 12
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Unit Category (SFA,SFD,2 to 4,5+,ADU,MH) Tenure R=Renter O=Owner Date Application Submitted+ (see instructions) Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low-Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Total PROPOSED Units by Project Total APPROVED Units by project Total DISAPPROVED Units by Project Was APPLICATION SUBMITTED Pursuant to GC 65913.4(b)? (SB 35 Streamlining) Was a Density Bonus requested for this housing development? Was a Density Bonus approved for this housing development? Please indicate the status of the application. Notes+ Summary Row: Start Data Entry Below 0 0 3 0 0 0 25 28 28 0 0 22-481-18, 22-481-
22 Erba Lane Bay Village SFD O 5/13/2021 19 10 10 No Yes Yes Approved 022-902-11 4303B Scotts
Valley Drive
2 to 4 O 5/13/2021 2 2 2 No No N/A Approved
22-732-01, 22-732-48 4104 Scotts Valley Drive Encore 5+ O 8/12/2021 214 16 16 No No N/A Approved Table A
Housing Development Applications Submitted
Cells in grey contain auto-calculation formulas
1 5
Project Identifier Unit Types Proposed Units - Affordability by Household Incomes (CCR Title 25 §6202)
Density Bonus Applications
10 003
Jurisdiction Scotts Valley ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2021 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 5th Cycle 12/31/2015 - 12/31/2023
Table A2
Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units Streamlining Infill
Housing without Financial
Assistance or Deed
Restrictions
Term of Affordability
or Deed Restriction Notes
23 56 89 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID+
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed Restricted
Above
ModerateIncome
Entitlement
Date Approved # of Units issued
Entitlements
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed Restricted
Above
ModerateIncome
Building Permits
Date Issued
# of Units Issued
Building Permits
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed Restricted
Above
ModerateIncome
Certificates of
Occupancy or other
forms of readiness
(see instructions)
Date Issued
# of Units
issued
Certificates of
Occupancy or
other forms of
readiness
How many of the
units were
Extremely Low
Income?+
Was Project
APPROVED using
GC 65913.4(b)?
(SB 35 Streamlining)
Y/N
Infill Units?
Y/N+
Assistance Programs
for Each Development
(may select multiple -
see instructions)
Deed Restriction
Type
(may select multiple -
see instructions)
For units affordable without
financial assistance or deed
restrictions, explain how the
locality determined the units
were affordable
(see instructions)
Term of Affordability or
Deed Restriction (years)
(if affordable in perpetuity
enter 1000)+
Number of
Demolished/Dest
royed Units
Demolished or
Destroyed Units
Demolished/Des
troyed Units
Owner or
Renter
Total Density Bonus Applied to
the Project (Percentage
Increase in Total Allowable
Units or Total Maximum
Allowable Residential Gross
Floor Area)
Number of Other
Incentives,
Concessions, Waivers,
or Other Modifications
Given to the Project
(Excluding Parking
Waivers or Parking
Reductions)
List the incentives,
concessions,
waivers, and
modifications
(Excluding Parking
Waivers or Parking
Modifications)
Did the project receive a
reduction or waiver of
parking standards? (Y/N)
Notes+
Summary Row: Start Data Entry Below 0 0 3 0 0 0 25 28 0 0 6 0 0 0 30 36 0 0 1 0 1 0 18 20 00 00 0 0 0
022-941-01 Thomas Terrace
(lot #1) The Terrace SFA O 0 0 1 4/28/2021 1 N
022-941-02 Thomas Terrace
(lot #2) The Terrace SFA O 0 01 4/28/2021 1 N INC
022-941-03 Thomas Terrace
(lot #3) The Terrace SFA O 0 0 1 4/28/2021 1 N
022-941-04 Thomas Terrace
(lot #4) The Terrace SFA O 0 0 1 4/28/2021 1 N
022-941-05 Thomas Terrace
(lot #5) The Terrace SFA O 0 0 1 4/28/2021 1 N
022-941-06 Thomas Terrace
(lot #6) The Terrace SFA O 0 0 1 4/28/2021 1 N INC
022-941-07 Thomas Terrace
(lot #7) The Terrace SFA O 0 0 1 4/28/2021 1 N
022-941-08 Thomas Terrace
(lot #8) The Terrace SFA O 0 0 1 4/28/2021 1 N
022-941-09 Thomas Terrace
(lot #9) The Terrace SFA O 0 0 1 4/28/2021 1 N
022-352-07
Cove Lane -
Dunslee Way Lot
#7
The Cove SFA O
0 0 1 1/29/2021 1 N
022-352-08
Cove Lane -
Dunslee Way Lot
#8
The Cove SFA O
0 0 1 1/20/2021 1 N
022-352-09
Cove Lane -
Dunslee Way Lot
#9
The Cove SFA O
0 0 1 1/6/2021 1 N
022-352-11
Cove Lane -
Dunslee Way Lot
#11
The Cove SFA O
0 0 1 1/29/2021 1 N
022-352-15
Cove Lane -
Dunslee Way Lot
#15
The Cove SFA O
0 0 1 1/29/2021 1 N
022-352-16
Cove Lane -
Dunslee Way Lot
#16
The Cove SFA O
0 0 1 1/20/2021 1 N
022-352-17
Cove Lane -
Dunslee Way Lot
#17
The Cove SFA O
0 0 1 1/6/2021 1 N
022-352-18
Cove Lane -
Dunslee Way Lot
#18
The Cove SFA O
0 0 1 1/20/2021 1 N
022-352-20
Cove Lane -
Dunslee Way Lot
#20
The Cove SFA O
0 0 1 1/20/2021 1 N
022-352-21
Cove Lane -
Dunslee Way Lot
#21
The Cove SFA O
0 0 1 1/20/2021 1 N
022-352-24
Cove Lane -
Dusnlee Way Lot
#24
The Cove SFA O
0 0 1 1/29/2021 1 N
022-891-02 18 Blake Lane ADU R 0 1 4/16/2021 1 0N
021-292-03 115 Blueberry Drive SFD O 0 1 11/18/2021 1 0N 023-131-03 0 Casa Way SFD O 0 1 7/19/2021 1 0N
023-131-03 0 Casa Way ADU R 0 1 7/19/2021 1 0N
024-391-29 201 Creekside
Court (Lot #29) Polo Ranch SFD O 0 1 11/23/2021 1 0N
024-391-30 203 Creekside
Court (Lot #30) Polo Ranch SFD O 0 1 11/23/2021 1 0N
023-141-18 208 Hacienda Drive ADU R 0 1 8/2/2021 1 0N
022-902-17 100 Coastal Oak
Court Acorn Commons SFA O 0 1 1/8/2021 1 0N INC
022-902-17 102 Coastal Oak
Court Acorn Commons SFA O 0 1 1/8/2021 1 0N INC
022-902-17 104 Coastal Oak
Court Acorn Commons SFA O 0 1 1/8/2021 1 0N INC
022-902-17 200 Coastal Oak
Court Acorn Commons SFA O 0 1 1/8/2021 1 0N INC
022-902-17 202 Coastal Oak
Court Acorn Commons SFA O 0 1 1/8/2021 1 0N INC
022-902-17 204 Coastal Oak
Court Acorn Commons SFA O 0 1 1/8/2021 1 0N INC
024-391-01 413 Polo Ranch
Road (Lot # 1) Polo Ranch SFD O 0 1 1/10/2021 1 0N
024-391-02 415 Polo Ranch
Road (Lot # 2) Polo Ranch SFD O 0 1 1/10/2021 1 0N
024-391-03 417 Polo Ranch
Road (Lot # 3) Polo Ranch SFD O 0 1 1/10/2021 1 0N
024-391-24 412 Polo Ranch
Road (Lot #24) Polo Ranch SFD O 0 1 7/8/2021 1 0N
023-061-15 118 Sawyer Circle ADU R 0 1 4/21/2021 1 0N
024-152-14 122 South Navarra
Drive ADU R 0 1 5/27/2021 1 0N
022-741-16 15 Tramell Way ADU R 0 1 2/23/2021 1 0N
024-391-23 100 Village Lane
(Lot #23) Polo Ranch SFD O 0 1 7/8/2021 1 0N
024-391-39 302 Village Lane
(Lot #39) Polo Ranch SFD O 0 1 11/23/2021 1 0N
024-391-40 300 Village Lane
(Lot #40 ) Polo Ranch SFD O 0 1 11/23/2021 1 0N
024-391-14 101 Village Lane
(Lot 14) Polo Ranch SFD O 0 1 7/8/2021 1 0N
024-391-15 103 Village Lane
(Lot 15) Polo Ranch SFD O 0 1 8/5/2021 1 0N
024-391-16 105 Village Lane
(Lot 16) Polo Ranch SFD O 0 1 8/9/2021 1 0N
024-391-17 107 Village Lane
(Lot 17) Polo Ranch SFD O 0 1 8/9/2021 1 0N
024-391-18 109 Village Lane
(Lot 18) Polo Ranch SFD O 0 1 9/17/2021 1 0N
024-391-19 111 Village Lane
(Lot 19) Polo Ranch SFD O 0 1 9/17/2021 1 0N
024-391-20 106 Village Lane
(Lot 20) Polo Ranch SFD O 0 1 9/17/2021 1 0N
024-391-21 104 Village Lane
(Lot 21) Polo Ranch SFD O 0 1 8/5/2021 1 0N
024-391-22 102 Village Lane
(Lot 22 ) Polo Ranch SFD O 0 1 7/8/2021 1 0N
024-391-25 113 Village Lane
(Lot 25 ) Polo Ranch SFD O 0 1 10/19/2021 1 0N
024-391-26 115 Village Lane
(Lot 26) Polo Ranch SFD O 0 1 10/19/2021 1 0N
024-391-27 117 Village Lane
(Lot 27) Polo Ranch SFD O 0 1 10/19/2021 1 0N
024-391-28 120 Village Lane
(Lot 28 ) Polo Ranch SFD O 0 1 10/19/2021 1 0N
22-481-18, 22-481-
22 Erba Lane Bay Village SFD O 1 9 6/16/2021 10 0 0N INC 022-902-11 4303B Scotts
Valley Drive SFD O 2 6/16/2021 2 0 0N
22-732-01, 22-732-
48 4104 Scotts Valley
Drive
Encore 5+ O 2 14 9/1/2021 16 0 0 N INC
Note: "+" indicates an optional field
Housing with Financial Assistance
and/or Deed Restrictions Project Identifier Demolished/Destroyed Units (CCR Title 25 §6202)
Density Bonus
1 Unit Types Affordability by Household Incomes - Completed Entitlement Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 4 7 10
004
Jurisdiction Scotts Valley ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2021 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 5th Cycle 12/31/2015 - 12/31/2023 (CCR Title 25 §6202) 1 34
RHNA Allocation
by Income Level 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Units to Date (all years) Total Remaining RHNA by Income Level Deed Restricted - - - - - - - - -
Non-Deed Restricted - - - - - - - - -Deed Restricted - - 3 - - 1 6 - - Non-Deed Restricted - - - - - - - - - Deed Restricted - - - 3 - 1 - - -
Non-Deed Restricted - - 4 - - - - - -
Above Moderate 58 5 9 38 63 12 8 30 - - 165 -
140
5 9 45 66 12 10 36 - - 183 64
Note: units serving extremely low-income households are included in the very low-income permitted units totals and must be reported as very low-income units. 12 Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will include units that were permitted since the start of the planning period.Total RHNATotal Units Income Level
Very LowLowPlease note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected]. 18 -
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.
8 Moderate
34 22 26
Please contact HCD if your data is different than the material supplied here 10 2
Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
34 005
Jurisdiction Scotts Valley
Reporting Year 2021 (Jan. 1 - Dec. 31)
123 4
Name of Program Objective Timeframe in H.E Status of Program Implementation

1. Sites Inventory Monitoring Program
a) Report on the progress of developmentin the identified sites inventory in theAnnual Progress Report to HCD as required pursuant to Government Code
Section 654000 and due April 1 of each
year. b) Monitor development approvalson identified sites and ensure that no netloss occurs. c) Continue to implement the City's 15% inclusionary Housingrequirement and Title 14 Affordable Housing Production requirements.

Ongoing through December 2023
The City will continue to monitor the remaining sites in the 2016 inventory to assure that land at appropriate densities are available to meet any unmet RHNA needs. The Town Center Site as listed in the 2016 site inventory still represents a significant site for additional housing opportunities. The City continues to implement the 15% Inclusionary Housing requirement and is planning to evaluate the Inclusionary Housing Ordinance and to propose changes as needed to increase its effectiveness in producing affordable housing. The City has also been awarded SB2 funds and has applied for LEAP funds for improved permit processing, an Update of the City's Housing Element and revisions to the ADU program.

2.Planned UnitDevelopment
Continue providing flexible design through the PD Zoning District.

Ongoing through December 2023
The City continues to encourage flexible design options throughout PD Zoning Districts.

3. Secondary DwellingUnit Program
a) Continue to publicize secondarydwelling unit program by developing brochures, updating the City's website,
and making available brochures at the
public counter. b) Periodically reviewprogram and make adjustments asfeasible to facilitate the development of secondary units.

Ongoing through December 2023
The City was awarded SB2 grant funds that will be used to update the City's Accessory Dwelling Unit Program so that it reflects all of the recent legislative changes as mandated by the State of California. These include Assembly Bill 68, Assembly Bill 881 and Senate Bill 13, all of which became effective as of January 1, 2020.

4. Emergency Shelters
a) Continue to monitor the inventory of
sites appropriate to accommodateemergecy shelters and work with theappropriate organizations to ensure theneeds of homeless and extremely lowincome residents are met. b) Prioritizeavailable funding and other available incentives for projects that provide housingfor homeless and extremely low income residents.

Ongoing through December 2023
The City continues to monitor the inventory of sites appropriate to accommodate emergency shelters and works with appropriate organizations.

Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
(CCR Title 25 §6202)
006

5. Transitional and
Supportive Housing
a) Continue to monitor the inventory ofsites appropriate to accommodate transitional and supportive housing and
work with the appropriate organizations to
ensure the needs of homeless and
extremely low income residents are met. b
b) Prioritize available funding and other
available incentives for projects that provide housing for homeless and extremely low income residents whenever possible.

Ongoing through December 2023 Transitional and Supportive housing are permitted by-right in all residential zones.

6. Density Bonus Program
Provide information on the Density Bonus Program at City Hall and on the City's website.

Ongoing through December 2023 Density Bonus Program information is included in Section 17.62 of the SVMC.

7. Code Enforcement
Continue to implement a proactive code enforcement program through the Building Department and inform residents of rehabilitation assistance when available at City Hall and the City's website.

Ongoing through December 2023 The City continues to implement a proactive code enforcement program.

8. Design Review
Continue to review projects to ensure consistency with the General Plan Zoning Ordinance and area design guidelines. The City will give processing priority to affordable housing projects.

Ongoing through December 2023
The City continues to conduct project reviews to ensure consistency with the General Plan and Zoning Ordinance and provides priority process to affordable housing projects as allowed by recent State of California legislation.

9. Monitor and Preserve
Affordable Housing
a) Develop and maintain an AB987database to include detailed information on all subsidized units, including thosethat have affordability covenants. b)Explore funding sources such as HUDSection 208/811 loans, HOPE II andHomeownership Program Funds, HOME funds, CDBG funds, Low Income Housing
Tax Credit Funds, California HousingFinance Agency single-family and multifamily programs and other programs to stimulate private developer and non-profitefforts in the development and financing ofhousing for lower and moderate-incomehouseholds. c) Continue to monitor at-riskdevelopments throughout the planning period and pursue partnership
opportunities with non-profits to preserve
and expand affordable housing in the City.

Ongoing through December 2023
The City maintains a data base and annually publishes an inventory of affordable housing opportunities (https://www.housekeys15.com). The City continues to explore available federal and state funding resources that would assist private and non-profit developers in producing affordable housing. The City has an on-going contractual relationship with HouseKeys to provide eligibility and monitoring assistance of affordable units.
007

10. Mobile Home Park
Conversion Ordinance
a)
Continue to implement the mobile home
park conversion ordinance in an effort toprotect existing mobile home parks and the supply of affordable housing. b)Provide information on the mobile home park conversion ordinance and other fairhousing information on the City's websiteand at City Hall.

Ongoing through December 2023
The City continues to implement the mobile home park conversion ordinance to protect existing mobile home parks. Information about the ordinance and other fair housing information is available at City Hall and on the City's web site.

11. Mobile Home Park
Rent Stabilization
Ordianance
a) Continue to implement the mobile home
park rent stabilization ordinance to ensurethat mobile home owners and residents are protected from unreasonable space
rental increases while recognizing the
need of mobile home park owners toreceive a just and reasonable return ontheir investment. b) Provide information on the mobile home park rent stabilization
ordinance and other fair housinginformation on the City's website and at City Hall.

Ongoing through December 2023
The City continues to implement the mobile home park rent stablization ordinance to protect existing mobile home parks. Information about the ordinance and other fair housing information is available at City Hall and on the City's web site. In addition, the City's Mobile Home Park Rent Review Committee receives, investigates and can hold hearings as needed on proposed rent adjustments.

12. Housing Voucher
Program
a) Continue to participate with the HousingAuthority of Santa Cruz County Section 8 Certificate/Voucher Rental Assistance
Program. B) Continue to refer residents tothe County program and provideinformation at City Hall and on the City'swebsite.

Ongoing through December 2023
The City continues to participate with the Housing Authority of Santa Cruz County and provides information about the Housing Aurhority's services.

13. Mortgage CreditCertificate Program.
a) Continue to refer residents to the
County program and provide information
at City Hall and on the City website.

Ongoing through December 2023
The Housing Authority of the County of Santa Cruz no longer administers a Mortgage Credit Certificate (MCC) Program. They continue the administration of the Reissued Mortgage Credit Certificate (RMCC) program for those MCC’s issued by the Housing Authority.

14. Fair Housing
Continue to provide informational and educational materials on fair housing services for property owners, apartment managers, and tenants at City Hall and on the City's website. Continue to monitor and respond, as appropriate, to complaints of discrimination, and continue to refer tenants to the California Department of Fair Employment and Housing for proper intake, investigation, and resolution of fair housing complaints.

Ongoing through December 2023
Fair Housing information is provided on the City's web site and at City Hall as well as through the Housing Authority of the County of Santa Cruz. This information is available to property owners, apartment managers and tenants as well as the general public. 008

15. Child Care and Day
Care Facilities
a) Continue to work with child careproviders and the County to promote child care facilities within the community. b)Provide information at City Hall and on the City's website on current zoningregulations that apply to child care andday care facilities. c) Continue to encourage new development to providechild care and day care facilities through a variety of activities, including outreachingto developers; providing financial or in-kindtechnical assistance, when available; providing expedited processing; identifying
grant and funding opportunities; and
providing information on the City's Density
Bonus Ordinance.

Ongoing through December 2023
The City continues to provide information at City Hall and on the City's web site regarding current zoning regulations that apply to child care and day care facilities. In addition, the City continues to encourage the provision of child care and day care facilties in all new proposed development activities.

16. Reasonable
Accommodation
a) Provide informational handouts andinformation at City Hall and on the City'swebsite about reasonable accommodationprocedures. b) Continue to work with developers and individual homeowners toencourage design and construction ofprojects that include features to make theunits usable for persons with disabilities.

Ongoing through December 2023
Chapter 17.60 of the City's Municipal Code provides Reasonable Accommodation standards and procedures. The Municipal Code is on the City's website as well as at City Hall.

17. Housing for Personswith DevelopmentalDisabilities
a) Seek State and Federal monies, asfunding becomes available, in support ofhousing construction and rehabilitationtargeted for persons with development disabilities. b) Provide regulatoryincentives, such as expedited permitprocessing, and fee waivers and deferrals,to projects targeted for persons with developmental disabilities. c) Work with
the San Andreas Regional Center toimplement an outreach program informing households within the City of housing and
services available for persons with
developmental disabilities. d) Provide
information on housing and servicesavailable for persons with developmentaldisabilities at City Hall and on the City'swebsite.

Ongoing through December 2023
The City continues to seek available funding and provide regulatory incentives to assist projects for persons with developmental disabilities. The City also continues to work with non profit developers who intend to provide housing for persons with developmental disabilities. Information on housing and services for persons with developmental disabilities is available at City Hall and on the City's web site. 009

18. Housing for Lower
Income Households
Encourage the development of housing for
lower income households, including extremely low, very low and low income, through a variety of activities, such as outreaching to housing developers; providing financial or in-kind technical assistance, when available; providing expedited processing; identifying grant and funding opportunities; and offering additional incentives beyond density bonus provisions.

Ongoing through December 2023
The City continues to encourage lower income housing (including low, very low and extremely low income) by providing information and assistance to both private and non profit developers.

19. Definition of "Family"
Amend, as appropriate, the definition of "family" to be consistent with State and federal fair housing laws.

Within one year of Housing Element adoption
An updated definition of "family" is scheduled to be reviewed at the time of the General Plan Update.

20. Agricultural Employee
Housing
Amend the Zoning Ordinance to meet the
requirements of Health and Safety Codes Section 17021.5 and 17021.6 as it relates to agricultural employee housing.

Within one year of Housing Element adoption
The City continues to review Health and Safety Codes as they relate to agricultural employee housing in order to amend the Zoning Ordinance if necessary.

21. Hillside Development
and Design
Continue to enforce the setback, height, and density standards identified in the Hillside Residential Combining District.

Ongoing through December 2023
The City continues to enforce the various standards as identified in the Hillside Residential Combining District.

22. ResourceConservation
Encourage energy conservation measures and devices to be incorporated in the development and improvement of housing. Review such requirements through the Design Review and Building Permit processes.

Ongoing through December 2023
The City reviews energy conservation measures and devices through the Design Review process and the building permit review.

23. Water and SewerProviders
Submit the adopted Housing Element, and
any subsequent amendments, to local water and sewer providers for their review and input.

Ongoing through December 2023
The 2016 Housing Element has been submitted to local water and sewer providers.

Future amendments to the 2016 Housing Element will also be submitted to local water and sewer providers.

24. Cultural Resources
Continue to review proposals for new housing to ensure that the City's cultural resources are adequately protected.

Ongoing through December 2023
The City continues to monitor proposed development actiivity in areas designed as "moderate or high cultural resource sensitivity zones" in the General Plan. 010
Jurisdiction Scotts Valley
Reporting Year 2021 (Jan. 1 - Dec. 31)
Planning Period 5th Cycle 12/31/2015 - 12/31/2023
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 6
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
30 36
Units by Structure Type Entitled Permitted Completed
SFA 0 6 20
SFD 12 24 0
2 to 4 0 0 0
5+ 16 0 0
ADU 0 6 0
MH 0 0 0
Total 28 36 20
3 28
28 0
0 0
0 0
Income Rental Ownership Total
Very Low 0 00
Low 0 00
Moderate 0 00
Above Moderate 0 00
Total 0 00
Cells in grey contain auto-calculation formulas
Income Level
Very Low
Low
Moderate
Above Moderate
Units Constructed - SB 35 Streamlining Permits
Number of Streamlining Applications Approved
Total Developments Approved with Streamlining
Total Units Constructed with Streamlining
Total Housing Applications Submitted:

Number of Proposed Units in All Applications Received:

Total Housing Units Approved:

Total Housing Units Disapproved:

Total Units
Housing Applications Summary
Use of SB 35 Streamlining Provisions
Note: Units serving extremely low-income households are included in the very low-income permitted units totals Number of Applications for Streamlining
Building Permits Issued by Affordability Summary
011

Scotts Valley City CouncilMarch 16, 2022

Scotts Valley City Council
March 16, 2022