Agenda packet — Seaside City Council, March 15, 2022 (part 1 of 2)

A G E N D A

CITY OF SEASIDE SPECIAL MEETING

CITY COUNCIL/SUCCESSOR HYBRID (VIRTUAL & IN PERSON)
AGENCY TO THE Tuesday, March 15, 2022
REDEVELOPMENT AGENCY 5:00 PM
___________________________________________________________________________________ NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Seaside utilizes Zoom tele-conferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of public through this means is at their own risk. ___________________________________________________________________________________ ___________________________________________________________________________________

VIRTUAL PUBLIC PARTICIPATION INSTRUCTIONS

1. To view this meeting: Please click on the following link to the City of Seaside YouTube Channel: https://www.youtube.com/c/CityofSeasideCalifornia

2. To participate in this meeting: Using the Zoom application on your smart phone, laptop, tablet or desktop and click on this link: https://ci-seaside-ca-us.zoom.us/j/81936832059 WEBINAR ID: 819 3683 2059

3. To participate by phone: Please call (669) 900-9128
Enter the meeting ID 819 3683 2059 when prompted. There is no participate code – press the pound sign # after the recording prompts you.

4. To make public comment, the following options are available:
 Before the Meeting via Email: Written comments can be emailed to [email protected] Include the following subject line: “Public Comment Item #___” (insert the agenda item number relevant to your comment). Written comments must be received by 2:00 p.m. on the day of the meeting.  During the Meeting via Oral Comments: When the Chair calls for public comment, attendees can queue to speak with the “Raise Hand” feature. On the Zoom application, click the “Raise Hand” button. On the phone, press *9.

IN PERSON PARTICIPATION INSTRUCTIONS
Members of the public participating in person and wishing to address the City Council may approach the podium when the Chair calls for public comment.

1. CALL TO ORDER
Packet Page 1
City Council SPECIAL Meeting March 15, 2022 5:00 PM Agenda Page 2

2. ROLL CALL – ESTABLISHMENT OF QUORUM
Ian N. Oglesby
David R. Pacheco
Jason Campbell
Jon Wizard
Alexis Garcia-Arrazola
Mayor/Chair
Mayor Pro Tem/Vice Chair
Council/Agency Member
Council/Agency Member
Council/Agency Member

3. INVOCATION AND PLEDGE OF ALLEGIANCE

4. REVIEW OF AGENDA
If there are any items that arose after the 72-hour posting deadline, this is the point in the meeting where a vote may be taken to add the item to the agenda. (A 2/3-majority vote is required).

5. PUBLIC COMMENT
Members of the public wishing to address the City Council on matters within the jurisdiction of the City of Seaside, but not on this agenda, may do so during the Public Comment period for up to three (3) minutes. Public Comments for "Presentations" on this agenda are also taken at this time; comments on specific agenda items are heard under that item. For the public record, please state your name.

6. PUBLIC AGENCY COMMUNICATIONS
This is a time specifically set aside for representatives of public agencies to make brief comments of general interest to the City Council and the community.

7. PRESENTATIONS
A. REVIEW OF UPCOMING CITYWIDE EVENTS (ERNESTO ALTAMIRANO,

COMMUNICATIONS & COMMUNITY ENGAGEMENT SPECIALIST)
B. VACCINATION UPDATE (FIRE CHIEF MARY GUTIERREZ)
C. PRESENTATION OF THE ANNUAL INDEPENDENT AUDITOR'S REPORT (VICTOR DAMIANI, FINANCE DIRECTOR)
D. PRESENTATION FROM PALENKE ARTS MULTICULTURAL CENTER
(PALENKE ARTS MULTICULTURAL CENTER EXECUTIVE DIRECTOR, JUAN L. SANCHEZ)

8. CONSENT AGENDA
Packet Page 2
City Council SPECIAL Meeting March 15, 2022 5:00 PM Agenda Page 3 A. APPROVE AND FILE CITY CHECKS
RECOMMENDATION: Approve and file the accounts payable and wired payments made during the period of January 15, 2022, through January 28, 2022, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period ending January 27, 2022. Total Accounts Payable and Payroll for the above referenced period is $2,169,453.17.

B. APPROVE AND FILE SUCCESSOR AGENCY CHECKS
RECOMMENDATION: Approve and file the accounts payable and wired payments made during the period of January 15, 2022, through January 28, 2022, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period ending January 27, 2022. Total Accounts Payable and Payroll for the above referenced period is $116.62.

C. ACCEPT AND FILE THE JUNE 30, 2021, ANNUAL COMPREHENSIVE

FINANCIAL REPORT (INCLUDING THE INDEPENDENT AUDITOR'S

REPORT), THE GOVERNANCE LETTER AND THE GANN LIMIT REPORT RECOMMENDATION: Receive, review, discuss and accept the June 30, 2021, Annual Comprehensive Financial Report, the Governance Letter and the Gann Limit Report for the City of Seaside.

D. APPROVE APPOINTMENTS TO COMMUNITY SAFETY ADVISORY

COMMISSION AND PLANNING COMMISSION
RECOMMENDATION: Accept the appointments of Silia Foliaki and Hufemia Ruiz to the Community Safety Advisory Commission and Rita Burks to the Planning Commission as recommended by the Mayor.

E. APPROVE PROCLAMATION RECOGNIZING THE MEALS ON WHEELS 50TH

ANNIVERSARY OF THE NATIONAL SENIOR NUTRITION PROGRAM
RECOMMENDATION: Adopt a proclamation recognizing the 50th Anniversary of the National Meals on Wheels program.

F. APPROVE PROCLAMATION RECOGNIZING MARCH 2022 AS AMERICAN

RED CROSS MONTH
RECOMMENDATION: Adopt a proclamation recognizing March 2022 as American Red Cross Month.

G. APPROVE A FEE WAIVER FROM BETHEL MISSIONARY BAPTIST CHURCH

FOR THE USE OF THE LAGUNA GRANDE HALL AND KITCHEN FOR THE FAITH BASED LUNCHEON ON MARCH 23, 2022
Packet Page 3
City Council SPECIAL Meeting March 15, 2022 5:00 PM Agenda Page 4 RECOMMENDATION: Approve the fee waiver request from the Bethel Missionary Baptist Church for the use of Laguna Grande Hall and kitchen to hold the Faith Based Luncheon in the amount of $253.75, the Organization to provide the City with the non refundable portion of the deposit of $92.25.

H. APPROVE CO-SPONSORSHIP OF SUSTAINABLE SEASIDE'S 2022

SUSTAINABLE SEASIDE EARTH DAY CELEBRATION AND ELECTRIC

VEHICLE TEST DRIVE/DEMO FAIR AT SEASIDE CITY HALL LAWN ON APRIL 30, 2022
RECOMMENDATION: Approve a request from Sustainable Seaside to co-sponsor their Seaside Earth Day Celebration and Electric Vehicle Test Drive/Demo Fair at City Hall Lawn on April 30, 2022, from 1:00 p.m. to 4:00 p.m. Approval of this item will result in a waiver of all fees and costs in the approximate amount of $2,950.00.

I. ADOPT A RESOLUTION AUTHORIZING THE CLOSURE OF GENERAL JIM

MOORE BOULEVARD TO THROUGH TRAFFIC FROM BROADWAY AVENUE

TO SAN PABLO AVENUE FOR THE SEASIDE EXOTICS EVENT ON AUGUST, 20, 2022.

RECOMMENDATION: Adopt a resolution permitting the closure of General Jim Boulevard to through traffic from San Pablo Avenue to Broadway Avenue to ensure public safety during the Seaside Exotics event on Saturday, August 20, 2022.

J. APPROVE LETTER OF SUPPORT FOR VETERANS' HOME IN MONTEREY COUNTY
RECOMMENDATION: Approve letter of support for Veterans' home in Monterey County to be sent to Monterey Bay Region State and Federal Legislators.

K. ADOPT A RESOLUTION AUTHORIZING A PROFESSIONAL SERVICES

AGREEMENT WITH THE WALLACE GROUP IN THE AMOUNT OF
$187,700.00 TO PERFORM ENGINEERING AND GEOLOGICAL SERVICES

FOR THE WATER AUGMENTATION WELL SITING STUDY TO SUPPORT

THE CAMPUS TOWN PROJECT
RECOMMENDATION: Adopt a resolution authorizing a professional services agreement with Wallace Group in the amount of $187,700.00 to perform engineering and geological services for the water augmentation well siting study to support the Campus Town Project.

9. BUSINESS ITEMS
A. ADOPT A RESOLUTION AUTHORIZING THE CLOSURE OF BROADWAY

AVENUE TO THROUGH TRAFFIC FROM FREMONT BOULEVARD TO
Packet Page 4
City Council SPECIAL Meeting March 15, 2022 5:00 PM Agenda Page 5

CALAVERAS STREET FOR THE OTHER BROTHER BEER COMPANY EVENT ON MARCH 19, 2022
RECOMMENDATION: Adopt a resolution permitting the closure of Broadway Avenue to through traffic from Fremont Boulevard to Calveras Street to ensure public safety during the Other Brother Beer Company event on Saturday, March 19, 2022.

B. ADOPT A RESOLUTION APPROVING THE REDUCED SCHOOL ZONE SPEED

LIMITS TRAFFIC ENGINEERING STUDY AND ESTABLISHING SCHOOL

ZONE SPEED LIMITS
RECOMMENDATION: Adopt a resolution approving the Reduced School Zone Speed Limits Traffic Engineering Study and establishing school zone speed limits on 21 roadway segments.

C. ADOPT A RESOLUTION ACCEPTING THE ANNUAL MID-YEAR FINANCIAL

REPORT AND ADOPTING PROPOSED CHANGES TO THE BUDGET OF THE CITY OF SEASIDE FOR THE FISCAL YEAR 2021-2022
RECOMMENDATION: Adopt a resolution accepting the annual mid-year financial report and adopting proposed changes to the budget for the Fiscal Year 2021-2022.

10. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS

1. NATIONAL WILDLIFE FEDERATION MAYOR'S MONARCH PLEDGE
(OGLESBY)
B. FOLLOW UP ON COUNCIL MEMBER REQUESTS

1. GENERAL PLAN STATUS AND UPDATE (CAMPBELL)

11. CITY ATTORNEY, CITY MANAGER, MAYOR AND CITY COUNCIL

COMMENTS AND REPORTS ON COMMITTEE ASSIGNMENTS
This is a time specifically set aside for members of the City Council, the City Manager and City Attorney to make brief comments of general interest to the community and report on committee assignments.

12. CLOSED SESSION
A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO Packet Page 5
City Council SPECIAL Meeting March 15, 2022 5:00 PM Agenda Page 6 GOVERNMENT CODE SECTION 54956.8:

1. The property commonly referred to as Main Gate
(Property bounded by Lightfighter, Divarty, Second Street and Highway):

Negotiations with State of California
Negotiator for the City: City Manager, et al.

Under Discussion: price, terms of payment or both.

B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8:

1. The property commonly referred to as Ascent
(Property located on the north side of the 1100 block of Broadway Avenue between Terrace Street and San Lucas Street)
Negotiations with Crauchan Capital
Negotiator for the City: City Manager, et al.

Under Discussion: price, terms of payment or both.

C. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9: EXISTING LITIGATION
Petrovich Development Company, LLC v. City of Seaside, et. al.

United States District Court, Northern District, San Jose Division Court case: 21-CV-07797-NC
D. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9: EXISTING LITIGATION
Committee for Sound Water and Land Development of Fort Ord v. Seaside, et al.

Sixth District Court of Appeal
Case No.: H049031
E. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9: POTENTIAL LITIGATION (1 MATTER)
Potential Litigation (1 Matter)

13. ADJOURNMENT
This meeting will adjourn in the honor and memory of
City of Salinas Police Officer Jorge David “JD” Alvarado.

End of Watch: February 25, 2022
Next Regularly Scheduled Meeting:

March 17, 2022
5:00 PM
Packet Page 6
City Council SPECIAL Meeting March 15, 2022 5:00 PM Agenda Page 7 The City of Seaside is committed to providing accessible facilities and accommodating people with disabilities in all of its services programs and activities. If special considerations are needed by any person to fully participate in this meeting, contact the City Clerk at 899-6707 no fewer than two business days prior to the meeting to allow reasonable arrangements. Agendas are posted at:
http://www.ci.seaside.ca.us/129/City-Council-Committee-Agendas Agenda-related writings or documents provided during public meetings are available for public inspection during the meeting or from the office of the City Clerk. This agenda is posted in compliance with California Governor Newsom's Executive Orders N-29-20 and N-33-20.

Packet Page 7
WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor ©2021 CliftonLarsonAllen LLP
March 15, 2022
City of Seaside
Presentation of Audit Reports
June 30, 2021
Packet Page 8
©2021 CliftonLarsonAllen LLP
Agenda
• Purpose of our Audit
• Summary of Audit Results by Engagement
• Required Audit Communication to Governance
• Recent Governmental Accounting Standards Board (GASB) Pronouncements
Packet Page 9
2 ©2021 CliftonLarsonAllen LLP
Purpose of Our Audit
• Express opinions providing reasonable, but not absolute, assurance whether the City’s financial statements are free from material misstatement whether due to fraud or error Packet Page 10
3 ©2021 CliftonLarsonAllen LLP
Summary of Audit Results by Engagement
Engagement Opinion on
Financial
Statements
Audit Findings
Annual Comprehensive Financial Report
(ACFR)
Unmodified 2 Material
Weaknesses
Seaside County Sanitation District Unmodified None Reported Measure X Compliance Unmodified None Reported
Packet Page 11
4 ©2021 CliftonLarsonAllen LLP
Summary of Audit Results by Engagement (Draft)
Engagement Opinion on
Compliance over
Major Federal
Programs
Opinion on I/C
over Major
Federal
Programs
Audit Findings
Single Audit Unmodified Unmodified None Reported
Packet Page 12
5 ©2021 CliftonLarsonAllen LLP
Summary of Audit Results: Recap of Findings
Engagement Type Account Condition Recommendation
ACFR MW Cash and
Investments
Cash reported in the RDA
successor agency fund was
overstated by $1.4 million.

Reconcile total of pooled cash fund
to total of individual funds in the
general ledger.

ACFR MW Donated
Land
Recording of donated land
from Fort Ord Reuse
Authority (FORA) from a
previous year.

Revise year-end closing procedures
to include collaboration with other
departments regarding significant
asset acquisitions and disposals.

Packet Page 13
6 ©2021 CliftonLarsonAllen LLP
Required Audit Communication
Matter to be Communicated Auditors’ Response
Accounting Policies • Significant accounting policies are described in Note 1. • No new accounting policies and no significant changes other than adoption of GASB 84, Fiduciary Activities.

Accounting Estimates • Claims liability based on third party reports of estimated claims
• Net pension and total OPEB liabilities are based on actuarial reports from third parties.
• Valuation of donated land from FORA is based on similar land sales
Corrected Misstatements • Adjust cash in Successor Agency fund by $1.4 million to reflect cash transferred to another fund.
• Adjust beginning capital assets and net position to reflect estimated value of donated land received in a prior year.

Disagreements with Management • No disagreements with management Consultations with Other Accountants • No consultations with other accountants Packet Page 14
7 ©2021 CliftonLarsonAllen LLP
Required Audit Communication (continued)
Matter to be Communicated Auditors’ Response
Fraud and Illegal Acts • None identified
Significant Difficulties Encountered During the Audit • No significant difficulties were encountered while performing our audit procedures.

Other Information in Documents Containing Audited Financial Statements
• Communicated responsibilities with respect to required supplementary information (RSI), supplementary
information (combining fund statements, introductory
section and statistical section) and the schedule of
expenditures of federal awards (SEFA)
Management Representations • Management provided us with a signed copy of the management representation letter upon completion of each engagement
Packet Page 15
8 ©2021 CliftonLarsonAllen LLP
Recent Governmental Accounting Standards Board
(GASB) Pronouncements
GASB Statement No. 87: Leases.
• Effective for fiscal year 2021/22.

Packet Page 16
9 CLAconnect.com
WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor ©2021 CliftonLarsonAllen LLP
Questions?
Packet Page 17
The information herein has been provided by
CliftonLarsonAllen LLP for general information
purposes only. The presentation and related materials,
if any, do not implicate any client, advisory, fiduciary, or professional relationship between you and
CliftonLarsonAllen LLP and neither CliftonLarsonAllen
LLP nor any other person or entity is, in connection
with the presentation and/or materials, engaged in
rendering auditing, accounting, tax, legal, medical,
investment, advisory, consulting, or any other
professional service or advice. Neither the presentation nor the materials, if any, should be considered a
substitute for your independent investigation and your
sound technical business judgment. You or your entity,
if applicable, should consult with a professional advisor familiar with your particular factual situation for advice or service concerning any specific matters.

CliftonLarsonAllen LLP is not licensed to practice law, nor does it practice law. The presentation and
materials, if any, are for general guidance purposes and not a substitute for compliance obligations. The
presentation and/or materials may not be applicable
to, or suitable for, your specific circumstances or needs, and may require consultation with counsel,
consultants, or advisors if any action is to be
contemplated. You should contact your
CliftonLarsonAllen LLP or other professional prior to
taking any action based upon the information in the
presentation or materials provided. CliftonLarsonAllen
LLP assumes no obligation to inform you of any changes
in laws or other factors that could affect the
information contained herein.
©2021 CliftonLarsonAllen LLP Packet Page 18
11 Financial Highlights
FY 2020-21
March 15, 2022
Packet Page 19
Revenues $ 49.4
Less Expenses 49.4
Change in Net Position $ (0.010)
City-Wide Operations
(in millions)
2 Packet Page 20
$4.7
$7.7
$9.9 $10.5
$12.1 $12.8
$18.9 $19.0 $19.8
$30.3
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 General Fund Balance - Ten Year Trend ( in millions)
General Fund Operations
(in millions):

FY2019-20
Results
FY 2020-21
Final Budget
FY2020-21
Results
Variance vs
Prior Year
Variance vs
Final Budget
Revenues $ 37.0 $ 30.7 $ 42.6 $ 5.6 $ 11.9
Less Expenditures (including transfers) 35.7 35.1 32.1 (3.6) (3.0) Change in Fund Balance $ 1.3 $ (4.4) $ 10.5 $ 9.2 $ 14.9 3 Packet Page 21
As of June 30, 2021 $ 30.3
Nonspendable 2.7
Restricted 0.5
Committed Rainy Day Reserves 11.5
Unassigned Fund Balance $ 15.7
Distribution of General Fund Balance
(in millions):
4 Packet Page 22
Other Funds:
• Water Fund
The water enterprise fund net position decreased $119
thousand due largely to pay-as-you-go financing of the
water tank recoating project. Revenues increased $268
thousand year over year due to an approved and
scheduled rate increase.
• Transportation Capital Projects
$6.7 million
• General Capital Projects
Total - $693 thousand
Parks Projects- $146 thousand
Solar Panels Project - $535 thousand
Other - $12 thousand
5 Packet Page 23
Recommendation:
• Accept the Fiscal Year Ended June 30, 2021 Annual
Comprehensive Financial Report (ACFR), the Governance
Letter and the Gann Limit report (on tonight’s consent
agenda)
Upcoming:
• FY21-22 Mid-year budget report; on tonight’s agenda
• FY 2022-23 budget process; beginning early March. Staff to provide Council with budget calendar.

Questions?
6 Packet Page 24

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.A.

TO: City Council
FROM: Roberta Greathouse, Acting City Manager
BY: Loreene Bermudez-Onate, Accountant II
DATE: March 15, 2022
SUBJECT: APPROVE AND FILE CITY CHECKS

RECOMMENDATION
Approve and file the accounts payable and wired payments made during the period of January 15, 2022, through January 28, 2022, including the payroll and benefits checks, direct deposits, and wired payments related to the pay period ending January 27, 2022.

Total Accounts Payable and Payroll for the above referenced period is $2,169,453.17.

BACKGROUND
In accordance with Government Code Section 37208, at each City Council meeting, the Council is provided a listing of the payroll and general checks issued since the last report so that the checks can be inspected and confirmed. Each purchase has been reviewed and approved by the department making the purchase at the time of procurement. The invoices have been reviewed by the Finance Department prior to payment to ensure that they conform to the approved budget.

Therefore, in accordance with Government Code Section 37208, the above referenced and linked list of checks conforms to the approved budget and has been paid. These checks are submitted to the City Council for inspection and confirmation.

A description of the checks and wires exceeding $10,000.00 are as follows:
 $10,845.18 to California-American Water for Water consumption for multiple City of Seaside service addresses. Billing period of 11/21/2021 - 12/21/2021. Service addresses include city buildings, parks, fire hydrants, irrigation stations, and city affordable housing.
 $14,546.21 to Community Human Services for Funding for Casa De Noche Buena Emergency shelter for single women and families with children located in Seaside Packet Page 25
Item No. 8.A. Page 2 of 3
for FY 21/22.
 $16,675.56 to Monterey Co. Convention & Visitor's Bureau for TID (Tourism Improvement District) remittance for the reporting period of November 2021 for the 13 Seaside motels/hotels.
 $19,500.00 to Monterey Co. Convention & Visitor's Bureau for Q3 FY 21/22 jurisdiction improvement investment.
 $44,250.13 to Pacific Gas & Electric for Collective accts for streetlights, highway lighting, park lights and city office buildings. Service period: 10/8/2021 - 11/23/2021.
 $51,875.16 to Pacific Gas & Electric for Collective accts for streetlights, highway lighting, park lights and city office buildings. Service period: 11/9/2021 - 12/27/2021.
 $53,892.11 to U.S. Bank-Calcard for City of Seaside purchase card transactions for the billing period of 11/23/2021-12/22/2021.
 $223,680.00 to Laurel Conte for Installation of (1) Kohler Generator at Oldemeyer Center.
 $64,448.18 to Monterey Peninsula Engineering for Improvement services for Ellis Park through 12/31/2021.
 $27,840.00 to Montgomery & Assoc. Water Resource Consultants for Seaside Basin Watermaster services for November 2021.
 $10,138.36 to Sturdy Oil Company for Ethanol/Diesel fuel deliveries in December 2021.
 $112,659.30 to Huntington Public Capital Corp. for Annual lease payment for 2017 ladder truck, lease #210849000.
 $12,623.00 to Del Monte Manor for United Way rental assistance for 3 tenants for 17 months ending 3/1/2022.
 $22,603.68 to Silver & Wright, LLP for Legal services for 1661 Mescal Ct and 1495 Ancon St; General Code Enforcement Services for the period of December 2021.
 $21,600.00 to Central Coast VNA and Hospice, Inc. for CDBG - Covid 19 Pop-up testing clinics for the months of November and December 2021.  $21,956.72 to Enterprise FM Trust for January 2022 lease expense for 20 City Vehicles.

The Net Payroll and Payroll benefits total was $943,812.42.

The remaining checks, totaling $496,507.16, include payments to vendors for operating expenditures.

The check report is available on the City's website here:
https://www.ci.seaside.ca.us/194/Check-Draft-Register

FISCAL IMPACT
Packet Page 26
Item No. 8.A. Page 3 of 3
There are no additional fiscal impacts.

ATTACHMENTS
None
Packet Page 27

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.B.

TO: Successor Agency to the Redevelopment Agency of the City of Seaside FROM: Roberta Greathouse, Acting City Manager
BY: Loreene Bermudez-Onate, Accountant II
DATE: March 15, 2022
SUBJECT: APPROVE AND FILE SUCCESSOR AGENCY CHECKS

Total Accounts Payable and Payroll for the above referenced period is $116.62.

BACKGROUND
In accordance with Government Code Section 37208, at each City Council meeting the Council is provided a listing of the payroll and general checks issued since the last report so that it can inspect and confirm these checks. Each purchase has been reviewed and approved by the department making the purchase at the time of procurement. The invoice has been reviewed by the Finance Department prior to payment to ensure that it conforms to the approved budget.

Therefore, in accordance with Government Code Section 37208, the above referenced, and linked list of checks conforms to the approved budget and has been paid. These checks are submitted to the City Council for inspection and confirmation.

A description of the checks and wires exceeding $10,000 are as follows:
 No checks exceeded $10,000.

The check report is available on the City's website:
https://www.ci.seaside.ca.us/194/Check-Draft-Register
Packet Page 28
Item No. 8.B. Page 2 of 2

FISCAL IMPACT
There are no additional fiscal impacts.

ATTACHMENTS
None
Packet Page 29

CITY OF SEASIDE

STAFF REPORT
Item No.: 8.C.

TO: City Council
FROM: Roberta Greathouse, Acting City Manager
BY: Victor Damiani, Finance Director
DATE: March 15, 2022
SUBJECT: ACCEPT AND FILE THE JUNE 30, 2021, ANNUAL

COMPREHENSIVE FINANCIAL REPORT (INCLUDING THE

INDEPENDENT AUDITOR'S REPORT), THE GOVERNANCE

LETTER AND THE GANN LIMIT REPORT

RECOMMENDATION
Receive, review, discuss and accept the June 30, 2021, Annual Comprehensive Financial Report, the Governance Letter and the Gann Limit Report for the City of Seaside.

BACKGROUND
The City of Seaside’s Annual Comprehensive Financial Report (ACFR) for the yearended June 30, 2021, is complete and audited. The auditors have given the City a clean opinion on the financial statements.

A copy of the City's Report is attached to this agenda item. Also attached are the Governance Letter and the Gann Limit Report.

The firm of CliftonLarsonAllen LLP, from Roseville, California performed the City’s audit for the year ending June 30, 2021, and for several years previous. In prior years they were known as Gallina LLP. CliftonLarsonAllen LLP will make a presentation at the February 17th meeting and will be available to answer questions.

FISCAL IMPACT
The cost of the annual audit is included in the annual budget.

ATTACHMENTS
Packet Page 30

Item No. 8.C. Page 2 of 2

1. Annual Comprehensive Financial Report

2. Governance Letter

3. GANN Limit Report
Reviewed for Submission to the City Council by:
__________________________________
Roberta Greathouse, Acting City Manager
Packet Page 31
For the Fiscal Year Ended June 30, 2021
Prepared by the Finance Department
Annual Comprehensive
Financial Report
City of Seaside, California
Packet Page 32
Packet Page 33

CITY OF SEASIDE

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

INTRODUCTORY SECTION
Letter of Transmittal 1
Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting 6
Organizational Chart 7
Directory of City Officials 8

FINANCIAL SECTION
Independent Auditors’ Report 9
Management’s Discussion and Analysis 12
Statement of Net Position 23
Statement of Activities 24
Fund Financial Statements
Governmental Funds
Balance Sheet 26
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position – Governmental Activities 27 Statement of Revenues, Expenditures, and Changes in Fund Balances 28 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the GovernmentWide Statement of Activities – Governmental Activities 29 Propietary Funds
Statement of Fund Net Position 30
Statement of Revenues, Expenses, and Changes in Fund Net Position 31 Statement of Cash Flows 32
Fiduciary Funds
Statement of Fiduciary Net Position 34
Statement of Changes in Fiduciary Net Position 35
Notes to Basic Financial Statements 36
Packet Page 34

CITY OF SEASIDE

TABLE OF CONTENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Required Supplementary Information
Budgetary Comparison Schedules
General Fund 81
Schedule of Changes in the City’s Net OPEB Liability and Related Ratios 83 Schedule of the City’s Proportionate Share of the Net Pension Liability 84 Schedule of Pension Contributions – Cost Sharing Plans 85 Schedule of Changes in Net Pension Liability and Related Ratios – PARS 86 Schedule of Contributions – PARS 88
Note to Required Supplementary Information 89
Supplementary Information
Budgetary Comparison Schedule
Transportation Capital Projects Fund 90
Measure X Bond Fund 91
Nonmajor Governmental Funds
Fund Descriptions 92
Combining Balance Sheet 97
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 104
Budgetary Comparison Schedules 111
Internal Service Funds
Fund Descriptions 130
Combining Statement of Net Position 131
Combining Statement of Revenues, Expenses, and Changes in Net Position 132 Combining Statement of Cash Flows 133
Custodial Funds
Combining Statement of Fiduciary Net Position – Custodial Funds 134 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds 135
Packet Page 35

CITY OF SEASIDE

TABLE OF CONTENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021

STATISTICAL SECTION (UNAUDITED)
Statistical Section Overview 136
Net Position by Component 137
Changes in Net Position 138
Fund Balances – Governmental Funds 140
Changes in Fund Balances – Governmental Funds 141
Governmental Funds – Revenues by Source 142
Governmental Funds – Taxes by Type 143
Assessed Valuation, Tax Rates, and Tax Levies 144
Principal Property Tax Payers 145
Top 25 Sales Tax Producers 146
Direct and Overlapping Property Tax Rates 147
Property Tax Levies and Collections 148
Legal Debt Margin Information 149
Ratios of Total Debt Outstanding 150
Direct and Overlapping Bonded Debt 151
Demographic and Economic Statistics 152
Principal Employers 153
Full Time Equivalent City Employees by Function 154
Capital Assets and Operating Indicators by Function/Program 155 Miscellaneous Statistics 156
Packet Page 36
Packet Page 37

INTRODUCTORY SECTION
Packet Page 38
Packet Page 39
(1)

FINANCE DEPARTMENT
440 Harcourt Avenue Telephone (831) 899-6718
Seaside, CA 93955 Fax (831) 394-8646
February 24, 2022
To the Honorable Mayor, Members of the City Council and Citizens of the City of Seaside:

I am pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Seaside for the Fiscal Year July 1, 2020 through June 30, 2021. This report is intended to present information that goes beyond the basic financial statements that are required by generally accepted accounting principles. It is addressed to the City’s governing body and its citizens; however, it also provides information to creditors, investors, and other interested parties.

For readers interested in a more detailed review of the City’s financial statements, the Management’s Discussion and Analysis (MD&A) is included in this report. The MD&A reports on the financial highlights of the City and provides additional analysis on the variances and trends reported as part of the financial statements. The MD&A provides a roadmap for the financial statements and related notes.

The City of Seaside’s management team is responsible for the accuracy of the information contained in this report, the adequacy of its disclosures, and the fairness of its presentation. We believe the data, as presented, is accurate in all material respects, it is presented in a manner to fairly set forth the financial position and results of operations of the City, and all disclosures necessary to provide the reader with the information needed to get a full understanding of the City’s financial affairs have been provided. To provide a reasonable basis for making these representations, the City has established a system of internal controls designed to protect the City’s assets from loss, identify and record transactions accurately, and to compile the information necessary to produce financial statements in conformity with generally accepted accounting principles.

The City’s auditors, CliftonLarsonAllen, LLP, a firm of licensed certified public accountants, performed an independent audit of the financial statements. They expressed an opinion that the City’s financial statements for the Fiscal Year 2020-2021 are fairly stated and in compliance with accounting principles generally accepted in the United States. This conclusion is the most favorable opinion and is commonly known as an unmodified or clean opinion. The auditor’s letter is included in this report.

CITY PROFILE
The City of Seaside is a general-law City incorporated on October 13, 1954. The City elects a Mayor every two years; four Council Members are elected at-large and serve overlapping four-year terms. The City operates under a council-manager form of government. The City Manager is appointed by the City Council and serves as the chief administrative officer and is responsible for administration of the City affairs, day-to-day operations, and implementation of Council policies. The City Attorney is also appointed by the City Council. The City’s fiscal year begins on July 1 and ends on June 30 of the following year.

The City of Seaside is located in Monterey County, California, on the Monterey Bay approximately 120 miles south of San Francisco. The City has a land area of 9.75 square miles and a population of 34,270. Seaside is the home of California State University, Monterey Bay (CSUMB) and the Monterey College of Law, which are located on the site of the former Fort Ord military base. It is also home to the Bayonet and Black Horse golf courses, also once part of the Fort Ord military base. These courses are now open to the public and host to PGA Tour events, including the 2012 PGA Professional National Championship.

Packet Page 40
(2)
Seaside’s local economy includes tourism generated by the Monterey Bay, attractions along the Central Coast, and California State University Monterey Bay (CSUMB). The City is also home to a regional auto sales and services mall that provides significant income to the City and creates employment opportunities in Seaside.

Unique eateries have become prominent in the City, drawing customers from as far away as the Bay Area.

The climate is a cool Mediterranean type, strongly influenced by the prevailing winds from the west, which blow over the Pacific Coast's cool ocean currents from Alaska. At the nearest National Weather Service Climate Station, the coldest month is January, with an average daily high of 59.9 °F; the warmest month is September, with an average daily high of 72 °F.

The City provides municipal services including police and fire protection, community and economic development, planning, building and code enforcement, recreation, parks and street maintenance, water service to part of the City, and general City administration. Gas and electricity are provided by Pacific Gas & Electric; water services are provided by the City, California American Water, and Marina Coast Waster District; sewer services are provided by Seaside County Sanitation District, Marina Coast Water District, and Monterey Regional Water Pollution Control Agency.

ECONOMIC CONDITION AND OUTLOOK
In March of 2020, the City declared a local emergency in response to the COVID-19 worldwide pandemic. The ensuing statewide shelter in place orders coupled with various levels of “reopening” created financial turmoil in the fourth quarter of FY 2019/20 and continues to create some uncertainty for the U.S. and worldwide economies at all levels. Late in 2020 The United States Food and Drug Administration approved multiple COVID-19 vaccines.

As of January 31, 2022, approximately 63.8% of the total U.S. population have been fully vaccinated. Despite being shown to be safe, effective, and free, there remains a substantial number of U.S. citizens who are hesitant or will intentionally refuse the vaccine. With nearly 30% of the population still unvaccinated, pressure remains on the U.S. health care system and economy.

At the local level, the City of Seaside unemployment rate increased from 3.4% in March to 20% in April of 2020 and as of December 2021 stands at 2.2%. Many of the City’s small businesses continue to struggle due to closure or capacity reduction orders. In response, the City of Seaside City Council approved a $200k revolving loan fund and a $150k façade improvement program to assist small businesses locally. Additionally, the City pursued and was awarded over $1M in grant funding to assist residents locally with utility payments and rental assistance.

In June of 2020, the City of Seaside City Council adopted the FY 2020-21 annual budget. Due to a projection of significant decreases in revenues, a deficit budget was adopted including an operating deficit of $2.7M The budget showed a deficit despite a concerted effort to reduce personnel costs by approximately $5.2M from the original projected personnel costs. General Fund personnel cost reductions were $1.9M below the FY19-20 budget. Final results for FY 2020-21 indicate that the decreases in revenue were not nearly as dire as originally projected. In fact, robust revenues coupled with significant cost reductions have resulted in a substantial year end surplus. In June of 2021, the City of Seaside City Council adopted the FY 2021-22 annual budget, and in light of the improving conditions, made plans to restore the City workforce.

Many of Seaside’s revenue streams have either recovered or increased beyond pre-pandemic levels. This is particularly true of Sales and Use Tax and Property Tax. On the other hand, one major sector of Seaside’s local economy is based on tourism. While tourism did see a rebound in the summer of 2021 this segment has yet to fully recover to pre-pandemic levels.

Packet Page 41
(3)
In May of 2021, the City was awarded nearly $9M American Rescue Plan Act stimulus funds. While $1.5M of these funds were designated and budgeted in FY2021-22 as lost revenue backfill, the remainder is likely to be budgeted in the FY 2022-23 budget cycle.

While there have been many bright spots, overall the local economy continues to face some significant headwinds including vaccination refusal/hesitancy, the possible emergence of new variants and inflation.

STRATEGIC DIRECTION, MAJOR INITIATIVES AND PROJECTS
In recognition of the need to focus on the City’s priority services and invest resources in those areas that will help advance the City over the long-term, the City Council established a strategic direction for FY2021-22 that included:
x Reimagine community safety
x A continuation of enhanced social welfare and social justice programming x Increase affordable housing
x Establish Climate Action Plan
x Street and sidewalk improvements
x Continue progress on major development projects
x Mobile vendor ordinance
x Language inclusivity – organization wide
x Establish commercial linkage fee
x Restore City workforce
x Build a robust parking enforcement program
The City Council will meet with staff in 2022 to update the priorities and strategic direction for the City to ensure that the progress and growth seen over the last year continues into the future. The City’s ability to accomplish its strategic direction will lead to increased fiscal stability and enhanced services for the community.

During FY2020-21, the Seaside Resort on the Bayonet and Blackhorse Golf Courses project moved forward. The property went into escrow in June 2019 with the sale closing in early FY2019-20. The housing component of this project is now underway. Additional projects, to include the Campus Town area for mixed-use development on the former Ft. Ord property, as well as the Ascent mixed-use project on upper Broadway continue to move forward. Completion of these projects will provide jobs, housing, resources, and revenue to the City of Seaside.

The Main Gate retail development project will regroup in the coming year, as the City was unable to come to terms on a developer agreement with the Petrovich Development Company.

The City works with the Monterey County Convention & Visitors Bureau and other agencies to encourage the expansion of businesses that generate local revenues and employment opportunities. The City also works with these organizations to develop and market Seaside as a tourist destination.

FINANCIAL INFORMATION
Relevant Financial Policies
The City Council has established three reserve policies to address operational needs – Capital Reserve, Special Reserve, and Emergency Reserve. Each reserve has a distinct purpose and funding level.

Packet Page 42
(4)
The Capital Reserve is to be used to fund capital purchases or projects. This reserve is funded by the City Council setting aside funds to be deposited into this reserve. This fund is to have a year-end balance of not less than five percent of operating expenditures.

In order to address extraordinary items that may arise from time to time, the City Council has established a Special Reserve fund. The fund is to have a year-end balance of not less than ten percent of operating expenditures.

The Emergency/Contingency Reserve has been established by City Council to provide the City with reserve funds to address potential non-budgeted emergencies that may occur to include weather related, economic, major equipment or facility failures, and other unforeseen events. The reserve is maintained to have a year-end minimum balance of not less than fifteen percent of the year-end operating expenditures.

Historically, the City reserves have dipped below the established level as the City recovered from the pre-2010 economic downturn. During FY2020-21, the City was able to bring reserve balances on par with adopted policy levels. At the time the fiscal year 2021-22 budget was adopted it was not anticipated that any draw on reserves would be necessary. The reserves of course are maintained for unforeseen circumstances.

In fiscal year 2020-21 the legal level of budgetary control (i.e. the level at which expenditures cannot exceed the budgeted amount) was changed from the line item level to the fund and department level.

Accounting System
The City’s accounting records for general, special revenue, capital project, and trust funds are budgeted and accounted for using the modified accrual basis of accounting. The revenues are recognized when they become measurable and available. Expenditures are recorded when the goods or services are received and the liabilities incurred. Accounting records for the City’s proprietary activities are maintained on a full accrual basis, with revenues recognized when earned and expenses recorded when incurred.

In maintaining the City’s accounting system, the adequacy of internal controls is considered. Internal controls are designed to provide a reasonable assurance related to the safeguarding of assets, as well as to ensure the reliability of financial records and maintain accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not outweigh the benefit derived. This cost / benefit analysis requires ongoing estimates and judgments by City management. It is believed that the City’s current system of internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.

Prior Year Certificate of Achievement for Excellence in Financial Reporting 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 Seaside for its comprehensive annual financial report for the fiscal year ended June 30, 2020. This was the second consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

Packet Page 43
(5)

ACKNOWLEDGEMENTS
The preparation of this ACFR represents the culmination of a concerted team effort by the Finance Department.

Each member of the department has my sincere appreciation for their contributions. In addition, appreciation goes to the staff in all City departments who assisted with the information needed for the annual audit and preparation of this report. This report is representative of the staff’s ongoing commitment to provide excellent service to the City of Seaside residents.

In closing, the City Finance Department would like to extend thanks and gratitude to the Mayor, City Council, and the City Manager for their stewardship and commitment to ensuring the long-term fiscal health of the City. Their leadership and guidance are essential in protecting Seaside’s quality of life and moving the City forward to achieve the community’s vision.

Respectfully submitted,
Victor Damiani
Finance Director
Packet Page 44
(6)
Packet Page 45

CITY OF SEASIDE

ORGANIZATIONAL CHART
(7)
Packet Page 46

CITY OF SEASIDE

DIRECTORY OF CITY OFFICIALS
AS OF JUNE 30, 2021
(8)

CITY COUNCIL
Ian Oglesby, Mayor
Dave Pacheco Jason Campbell
Jon Wizard Alexis Garcia-Arrazola

ADMINISTRATIVE OFFICER
City Manager………………………………………………………………..……… Craig Malin
City Attorney ……………………………………………………….………..….. Sheri Damon City Clerk ............................................................................................... Dominique Davis Finance Director….……………………………............................................ Victor Damiani Building and Code Enforcement Director ………………………………………. David Little Chief of Police ........................................................................................... Abdul Pridgen Community Development Director……………………………………………..…..… Vacant Economic Development Director………………………………………..…….. Trevin Barber Fire Chief ................................................................................................... Mary Gutierrez Human Resources Director/Risk Manager....................................... Roberta Greathouse Public Works Director ………….……..…………………………………………. Nisha Patel Recreation Services Director .....................................................................Daniel Meewis Packet Page 47

FINANCIAL SECTION
Packet Page 48
Packet Page 49
CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.

CliftonLarsonAllen LLP
CLAconnect.com
(9)
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and
Members of the City Council
City of Seaside, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Seaside (the City), California, 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.

Auditors’ 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. 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 auditors’ 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.

Packet Page 50
To the Honorable Mayor and
Members of the City Council
City of Seaside, California
(10)
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, the discretely presented component unit, 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.

Emphasis of Matter
Prior Period Adjustment
As described in Note 4G, beginning governmental net position and fiduciary net position was restated to correct prior period errors. Our opinions are not modified with respect to these matters.

Change in Accounting Principles
The City adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities, effective July 1, 2020. Beginning fiduciary net position was restated as a result of the adoption of this standard. Our opinions are not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in the City’s Net OPEB liability and related ratios, schedule of the City’s proportionate share of the net pension liability, schedule of changes in net pension liability and related ratios for PARS, schedules of pension contributions for cost sharing plans and PARS and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an 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.

Supplementary and 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, combining and individual nonmajor fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

Packet Page 51
To the Honorable Mayor and
Members of the City Council
City of Seaside, California
(11)
The combining and individual nonmajor fund financial statements and schedules 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 supplementary information is 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.

CliftonLarsonAllen LLP
Roseville, California
February 24, 2022
Packet Page 52
Packet Page 53
MANAGEMENT’S DISCUSSION AND ANALYSIS
Packet Page 54
Packet Page 55

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(12)
As the management of the City of Seaside (City), we offer readers of the City’s financial statements this discussion and analysis of the financial activities of the City for the year ended June 30, 2021. Please read this overview in conjunction with the basic financial statements and the accompanying notes to those financial statements.

FINANCIAL HIGHLIGHTS
City-Wide
x The total net position of the City increased over the course of the fiscal year by $116.9 million to $170.0 million, including a prior period adjustment of $116.9 million. The net position of governmental activities increased by $181 thousand, or less than 1% from the restated net position, and the net position of business-type activities decreased by $170 thousand, or 2.0%. x Total City revenues were $49.4 million in fiscal year 2020-2021, a decrease of $3.7 million or 7% from fiscal year 2019-2020.
x Total City expenses were $49.4 million in fiscal year 2020-2021, which was an increase of $4.4 million or 9.70% from fiscal year 2019-2020.

Fund Basis
x The City’s General Fund reported a fund balance at June 30, 2021 of $30.3 million, an increase of $10.4 million or 52.83% from the restated prior year balance. Of the total fund balance, $2.7 million is in a non-spendable form, $482 is restricted, $11.5 million is committed, $504 thousand is assigned, and $15.2 million is unassigned. These restrictions and commitments of fund balance do not significantly restrict the availability of resources for ongoing uses; there is sufficient unassigned fund balance, 50.1% of total fund balance. x General Fund revenues, including transfers in and proceeds on sale of land were $42.6 million in fiscal year 2020-2021.
x Total General Fund expenditures, including transfers out, were $32.1 million in fiscal year 2020- 2021.

THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also contains supplementary information.

Government-Wide Financial Statements
These financial statements include all of the activities of the City and its component units using the integrated approach as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – Management’s Discussion and Analysis – for State and Local Governments. They present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector businesses. They present governmental activities and business-type activities separately. These statements include all assets of the City (including infrastructure) as well as all liabilities (including long-term debt).

Packet Page 56

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(13)
The government-wide financial statements are comprised of the statement of net position and the statement of activities. The statement of net position and the statement of activities report information about the City as a whole and about its activities. These statements include all assets and deferred outflows of resources and liabilities and deferred inflows of resources of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the City’s net position and changes in them. Net position is the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources, which is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating.

In the statement of net position and the statement of activities, we separate the City activities into two categories. The governmental activities include the City’s basic services, including General Government, Public Safety, Recreation, Public Works, and Community Development. Property and sales taxes, user fees, interest income, franchise fees, and state and federal grants finance these activities. The business-type activities include the City’s Water System and the Golf Course. These services are supported by charges paid by users based on the amount of the service they use.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. These fund financial statements include statements for each of the three categories of activities – governmental, proprietary, and fiduciary. The governmental funds are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The proprietary funds are prepared using the economic resources measurement focus and the accrual basis of accounting. The fiduciary funds are agency funds, which only report a statement of fiduciary assets and liabilities and do not have a measurement focus.

The fund financial statements provide detailed information about each of the City’s most significant funds, called major funds, not the City as a whole. Major funds present the major activities of the City for the year. The major funds may change from year to year as a result of changes in the City’s major activities. Other funds are required to be established by State law and by bond covenants. In addition, management may establish funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money.

Governmental Funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual basis of accounting, which means the fund only measures current financial resources and uses. Capital assets and other long-term assets and long-term liabilities are not presented in the governmental fund financial statements. The City’s major governmental funds as of June 30, 2021, are the General Fund, the, the FORA Bond Fund, the Federal Economic Recovery Grants Fund, the Transportation Capital Projects Fund and the Measure X Bond Fund.

Packet Page 57

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(14)
Proprietary Funds – Enterprise and internal service funds are included in the proprietary fund financial statements. These statements are prepared on the full accrual basis of accounting, including all assets and deferred outflows of resources and liabilities and deferred inflows of resources, both current and long-term. The City’s major proprietary funds as of June 30, 2021, are the Water Fund and the Golf Fund.

Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support City programs. The City’s fiduciary funds as of June 30, 2021 are the Developer Deposits Fund and the Watermaster Fund (Custodial) and the Successor Agency to the City’s Former Redevelopment Agency Fund (Private Purpose Trust Fund).

Notes to the Financial Statements
The notes to the basic financial statements provide additional information and narrative disclosures that are essential to a full understanding of the data provided in the government-wide and fund financial statements.

Other Information
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information. The required supplementary information includes 1) funding progress schedules for other postemployment benefits, 2) net pension liability and contribution schedules for pension benefits, 3) budgetary comparison schedules for general and major special revenue funds, and 4) a budgetary information note.

The combining statements for nonmajor governmental funds, internal service funds, and fiduciary funds are presented immediately following the required supplementary information.

Packet Page 58

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(15)
Table 1
Government-Wide Financial Statements vs. Fund Financial Statements Grid Government-Wide
Financial Governmental Proprietary Fiduciary
Features Statements Fund Fund Fund
Scope The primary government
(The City) and the
component units (Housing
Successor Agency of the
Redevelopment Agency
and Financing Authority) –
excludes Fiduciary
Activities.

All activities of the City and the
component units which are not
proprietary or fiduciary in
nature.

Activities the City
operates similar to
private business:
• Water Fund,
• Golf Fund.

Accounting for resources
held for the benefit of
another party:
• Watermaster,
• Developer
Deposits,
• Private-Purpose Trust
Fund.

Required Financial
Statements
1) Statement of Net
Position
2) Statement of
Activities
1) Balance Sheet
2) Statement of Revenues,
Expenditures, and Changes
in Fund Balances
1) Statement of Net
Position
2) Statement of
Revenues, Expenses,
and Changes in Fund
Net Position
3) Statement of Cash
Flows
1) Statement of
Fiduciary Net Position
2) Statement of Changes
in Fiduciary Net
Position
• Accounting Basis
• Measurement
Focus
• Accrual
• Economic Resources
• Modified Accrual
• Current Financial Resources
• Accrual
• Economic Resources
Asset and Liability
Recognition
All short-term and longterm capital assets and
liabilities.
- Includes infrastructure
and long-term debt.

Only assets expected to be
used up and liabilities that
come due during the year or
soon thereafter. No capital
assets or long-term debt
included.

All short-term and
long-term capital
assets and
liabilities.
- Includes infrastructure
and long-term debt.

Fund Financial Statements
Revenue and
Expense Recognition
All current year’s
revenues and expenses,
regardless of when cash
is received or paid.

Revenues which are collected
during or within 60-90 days
after year-end. Expenditures
when goods/ services received
and payment is due during or
within 60 days after year-end.

All current year’s
revenues and expenses,
regardless of when cash
is received or paid.

Packet Page 59

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(16)

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Over time, the change in net position may serve as a useful indicator of the City’s financial position. The City’s combined net position as of June 30, 2021, is $170.0 million, a decrease of $10 thousand or less than 1% from the restated net position of the previous year. This change in net position is primarily due to a decrease of $1.7 million in charges for service, a decrease of $7.1 million in operating grants and an increase of $6 million Taxes. Revenue decreases were offset by increases in Public Works; $7.8 million, and decrease in Public Safety; $3.3 million and Community Development; $77 thousand.

The City’s net investment in capital assets of $177.0 million reflects its investment in capital assets such as land, infrastructure, buildings, intangible assets, vehicles, and equipment, minus any related outstanding debt. The change in capital assets in the Governmental activities of $114.9 million reflects land donated to the City resulting from the dissolution of FORA, as well as current year depreciation expense less additions to capital assets during the 2020-2021 fiscal year.

Table 2
Net Position
(in thousands, rounded)
2021 2020 2021 2020 2021 2020
Assets:

Current and Other Assets 72,543 $ 59,782 $ 778 $ 1,023 $ 73,321 $ 60,805 $ Capital Assets 174,911 60,040 11,653 11,875 186,564 71,915 Total Assets 247,454 119,822 12,431 12,898 259,885 132,720 Deferred Outflows of Resources
Deferred pension 11,247 11,239 55 134 11,302 11,373
Deferred OPEB 2,153 1,368 - - 2,153 1,368
12,607 13,400 55 134 13,455 12,741
Liabilities:

Long-Term Liabilities 84,422 82,013 3,375 3,744 87,797 85,757 Other Liabilities 11,023 2,819 168 134 11,191 2,953
Total Liabilities 95,445 84,832 3,543 3,878 98,988 88,710 Deferred Inflows of Resources:

Deferred Pension 2,618 3,474 13 53 2,631 3,527
Deferred OPEB 1,723 118 - - 1,723 118
Total Deferred Inflows 4,341 3,592 13 53 4,354 3,645
Net Position:

Net Investment in Capital Assets 168,453 54,434 8,526 8,631 176,979 63,065 Restricted 16,529 22,026 551 551 17,080 22,577
Unrestricted (23,914) (32,455) (147) (81) (24,061) (32,536) Total Net Position 161,068 $ 44,005 $ 8,930 $ 9,101 $ 169,998 $ 53,106 $ Governmental Activities Business-Type Activities Total
Statement of Activities
Total City-wide program revenue and general revenue during 2019-2020 was $49.4. million. Total Citywide expenses were $49.4 million. Expenses exceeded operating revenues by $10 thousand.

Packet Page 60

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(17)
Table 3
Changes in Net Position
(in thousands, rounded)
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Revenues:

Program Revenues:

Charges for Services 2,113 $ 4,100 $ 1,365 $ 1,098 $ 3,478 $ 5,198 $ Operating Grants 3,434 10,523 - - 3,434 10,523
Capital Grants 1,576 879 - - 1,576 879
General Revenues:

Taxes 38,891 32,868 - - 38,891 32,868
Use of Money and Property 296 500 2 5 502 301
Other Revenues 1,534 3,305 3 27 1,537 3,332
Total Revenues 48,048 51,971 1,370 1,130 49,418 53,101
Expenses:

General Government 838 1,012 - - 838 1,012
Public Safety 26,837 23,518 - - 23,518 26,837
Recreation 2,620 2,756 - - 2,620 2,756
Public Works 16,675 8,927 - - 16,675 8,927
Community Development 3,424 3,501 - - 3,424 3,501
Enterprise Operations - - 1,541 1,135 1,541 1,135
Interest and Fiscal Charges 793 870 - - 793 870
Total Expenses 47,868 43,903 1,541 1,135 49,409 45,038
Change in Net Position 8,068 180 (171) 9 (5) 8,063
Net Position - Beginning Year,
Restated 160,888 35,937 9,101 9,106 169,989 45,043
Net Position - End of Year $ 44,005 161,068 $ 8,930 $ 9,101 $ 169,998 $ 53,106 $ Governmental Activities – In the 2020-2021 fiscal year, City revenues for governmental activities exceeded program expenses by $181 thousand. The largest expense category was Public Safety totaling $23.5 million or 49.1%. This is a decrease from the prior year of about $3.3 million. Community Development expenses were $3.4 million or 7.1% of total City governmental expenses, a decrease of

2.2% from the previous year Public Works, including streets expenses, totaled $16.7 million or 34.9% of total expenses. This indicates an increase of $7.7 million made up mostly of grant funded street repairs and maintenance. Recreation expenses were 5.5% of total governmental expenses. The balance of $1.6 million, or 5.0%, was for General Government and interest charges on debt financing. Multiple program areas show a year over year cost decrease reflecting cost cutting measures undertaken in response to the COVID-19 pandemic and anticipated revenue reductions.

Business-Type Activities – Expenses for business-type activities exceeded revenues by $171 thousand driven primarily by increases in pension expense. The main driver of the decrease in net position was in-house financing of water tank maintenance work in the Water Fund.

Packet Page 61

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(18)

FUNDS FINANCIAL ANALYSIS
The City uses fund accounting to ensure compliance with financial related legal requirements and to provide financial management over certain funds.

Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial capacity.

In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of June 30, 2021, the City’s governmental funds have a combined ending fund balance of $58.2 million. This is an increase of $4.8 million.

Major Governmental Funds
x General Fund: Total General Fund revenues, excluding transfers, were $41.8 million, which was $11 million more than the original budget primarily due to surprising increases of receipts for property taxes, robust sales tax collections (from auto sales in particular) and strong local tax on gross receipts of marijuana sales. Expenditures were $29.6 million, excluding transfers, compared to the original budget of $30.2 million. Other uses of financing totaled $2.5 million.

The General Fund fund balance increased by $10.5 million to $30.3 million during 2020-2021.

This is an increase of 53%.
x FORA Blight Removal Fund; In fiscal year 2019-20 the City received grant funds for the removal of blight and remediation activity on former Ft. Ord properties within Seaside. Grant revenue received was $6.7 million with major work not scheduled to be underway until fiscal year 2021-

22. Year-end fund balance was $6.5 million.
x Federal Economic Recovery Grants; In fiscal year 2020-21 the City received American Rescue Plan Act funding in the amount of $4.5 million. An additional $4.5 million is expected in fiscal year 2021-22. The funds are expected to be spent prior to fiscal year 2026 deadline. x Transportation Capital Projects Fund: Project expenditures for fiscal year 2020-21 were $6.7 million. The capital projects in this fund are fully funded with revenue from various sources, including the Transportation Agency for Monterey County as well as other State of CA programs. Additionally funding is provided by a Maintenance of Effort (MOE) payment from the City’s general fund. The year-end fund balance was negative $177 thousand. x Measure X Bond Fund: The primary purpose of this fund is to account for bond proceeds issued for street improvements. The bond will be repaid using Measure X tax revenue received by the City. During the course of 2020-21, transfers to fund project costs were $7.6 million and bond payment was $643 thousand. Fund balance at fiscal year-end was $3.4 million. The final phase of projects using bond proceeds is expected in fiscal year 2021-22.

Packet Page 62

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(19)
Proprietary Funds
As of June 30, 2021, the City’s proprietary funds net position is $10.7 million; unrestricted net position is $1.5 million. The balance of net investment in capital assets is $8.7 million. The most significant capital asset is the Golf Course; the value of the Golf Course is $7.7 million net of related debt. The Golf Courses are operated by B&B Golf Course Properties under a lease agreement with the City. A change of ownership occurred early in fiscal year 2021-22.

The proprietary funds net position increased $357 thousand, due to a decrease in net position of $119 thousand in the Water Fund, a decrease in net position of $52 thousand in the Golf Fund and an increase in net position of $527 thousand in the Internal Service Funds. Although revenues increased in the Water Fund, expense related to the system water tanks is the primary reason for the decrease in net position. Depreciation expense is the primary cause of the decrease in net position in the Golf Fund.

CAPITAL ASSETS
The capital assets of the City are those assets which are used in the performance of the City’s functions including infrastructure assets. At June 30, 2021, net capital assets of the governmental activities totaled $174.9 million and the net capital assets of the business-type activities totaled $11.7 million. Depreciation on governmental activities capital assets is recognized in the government-wide financial statements and is included in the fund statements for business-type activities. The decrease in capital assets is due to depreciation outpacing purchase and construction of new capital assets. In fiscal year 2020-21 many of the City’s capital improvement projects were paused in an effort to reduce costs in anticipation of reduced revenues due to the COVID-19 pandemic. Fiscal year 2021-22 will see a rebound with parks improvements, streets improvements as well as various other projects budgeted and underway.

Table 4
Capital Assets
(in thousands, rounded)
2021 2020 2021 2020 2021 2020
Land 120,761 $ 121,461 $ 8,540 $ 8,540 $ 129,301 $ 130,001 $ Intangible Assets 10,767 10,767 41 41 10,808 10,808
Construction in Progress 832 680 36 34 868 714
Structures and Improvements 16,572 16,037 4,201 4,201 20,773 20,238 Equipment and Vehicles 13,544 12,739 239 245 13,783 12,984 Infrastructure 93,600 93,600 2,296 2,296 95,896 95,896
Total Assets 256,076 255,284 15,353 15,357 271,429 270,641 Less: Accumulated Depreciation (81,164) (78,361) (3,701) (3,482) (84,865) (81,843) Net Capital Assets 174,911 $ 176,923 $ 11,653 $ 11,875 $ 186,564 $ 188,798 $ Governmental Activities Business-Type Activities Total
Refer to Note 3 – Detailed Notes to All Funds, under Capital Assets, for additional information about the City’s capital assets.

Packet Page 63

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(20)

LONG-TERM DEBT
Debt of the governmental activities was approximately $19.6 million as of June 30, 2021, a $1.2 million decrease from the prior year. The decrease is due to debt payments made during the year.

Refer to Note 3 – Detailed Notes to All Funds, under Long-Term Liability, for additional information about the City’s long-term debt.

Table 5
Long-Term Debt
(in thousands, rounded)
2021 2020 2021 2020 2021 2020
Bonds Payable 18,251 $ 19,255 $ 3,120 $ 3,233 $ 21,371 $ 22,488 $ Capital Leases 1,382 1,604 7 12 1,389 1,616
Net Long-Term Debt 19,633 $ 20,859 $ 3,127 $ 3,245 $ 22,760 $ 24,104 $ Governmental Activities Business-Type Activities Total

BUDGETS AND BUDGETARY ACCOUNTING
The Annual Budget assures the efficient, effective, and economic uses of the City’s resources, as well as establishing that the highest priority objectives are accomplished. Through the budget, the City Council sets the direction of the City, allocates its resources, and establishes its priorities. The City uses the following procedures in establishing the budget reflected in the financial statements:

1. Before the beginning of each fiscal year, the City Manager submits to the City Council a proposed budget for the year commencing July 1 and a forecasted budget for the following year.

2. A City Council special study session is conducted at which public comment is accepted and considered.

3. The budget is adopted through passage of a resolution and is published separately.

4. All appropriations are as originally adopted or as amended by the City Council and all unencumbered budgeted amounts lapse at year-end. Multi-year capital budgets are considered an encumbrance and automatically roll forward each year until completion of the project.

5. Legally adopted budget appropriations are set for the General, Special Revenue, Debt Service, and Capital Projects Funds.

6. Budgetary control is at the City Manager level. A Department Head, with City Manager approval, may transfer appropriations within the department and fund. The City Council, by the affirmative vote of three members, may amend the budget to add or delete appropriations, transfer appropriations within a fund, or change appropriations between funds.

7. The legal level of budgetary control (i.e. the level at which expenditures cannot exceed the budgeted amount) is at the fund and department level.

Packet Page 64

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(21)
The fiscal year budget for 2020-2021 was adopted in June 2020. The 2020-2021 General Fund original revenue budget was $30.7 million and the City collected $41.8 million or 36% more than budgeted. This increase is primarily attributable to surprising increases of receipts for property taxes, robust sales tax collections (from auto sales in particular) and strong local tax on gross receipts of marijuana sales. The original expenditure budget was $30.2 million. Actual expenditures were less than the original budget by $560 thousand or 1.8%. This is largely due to savings from personnel costs as the City reduced its workforce in response to the uncertain revenue picture caused by the COVID-19 pandemic. The fiscal year 2020-2021 was originally budgeted at a $2.6 million deficit but actual results show a $10.5 million surplus. This is an astounding turn of events.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND FEES
In March of 2020, the City declared a local emergency in response to the COVID-19 worldwide pandemic. The ensuing statewide shelter in place orders coupled with various levels of “reopening” created financial turmoil in the fourth quarter of FY 2019/20 and continues to create some uncertainty for the U.S. and worldwide economies at all levels. Late in 2020 The United States Food and Drug Administration approved multiple COVID-19 vaccines. As of January 31, 2022, approximately 63.8% of the total U.S. population have been fully vaccinated. Despite being shown to be safe, effective, and free, there remains a substantial number of U.S. citizens who are hesitant or will intentionally refuse the vaccine. With nearly 30% of the population still unvaccinated, pressure remains on the U.S. health care system and economy.

Hdl (The City’s revenue enhancement consultant) expects the national economy to grow 3% in FY 21- 22, before slowing to 2% in FY 22-23. California’s unemployment rate is expected to remain high at nearly 6% through FY 21-22 whereas Sales & Use Tax is expected to increase 10.8% in FY 21-22 and grow by 3.5% in FY 22-23.

Positive local economic factors for fiscal year 2021-2022 include property tax collections that are expected to increase as assessed valuations continue to improve. The legalization of the cannabis industry under Measure G, as passed by citizens in February 2017, has resulted in the addition of eight approved cannabis licenses (six issued as of this writing) providing additional revenue through the six percent (6%) cannabis gross receipts tax. The cannabis tax brought in over $1.4 million in FY 2020-21 but may be showing signs of leveling out in fiscal year 2021-22. Short-term rentals, with an adopted twelve percent (12%) transient occupancy tax (TOT) have also been approved within the City of Seaside. As these two business sectors grow within the City, the additional revenues provided will assist the City in the continued implementation of the City’s Strategic Direction.

Over the next several years active economic development strategies are expected to bring growth and development that will improve revenue collections. In addition, the 2021-2022 budget includes continuation of the significant road repair program started in FY 2019-20 and completion of the Cutino Park improvement project. These activities represent a significant commitment of resources toward improving the quality of life in Seaside through City investment.

The City conducted a water rate study in FY 2018-19 to determine the appropriate rate at which City provided water services should be set. The 2020-21 fiscal year realized an increase in charges for services of over $265 thousand or 35%. Unfortunately, increases in revenue were offset by maintenance costs related to the Utility’s water tanks. The Utility has two one approved rate increase scheduled for 2022.

Packet Page 65

CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(22)
Fiscal year 2020-21 economic indicators surprisingly show continued growth, even in the throes of a worldwide pandemic. Early indications are that this positive trend will continue through fiscal year 2021- 22 before slowing in fiscal year 2022-2023. Still, the city faces the following headwinds in the near term:
x The possibility of new COVID 19 variants
x Inflationary pressure
x Vaccine hesitancy/refusal
x Pension costs
Despite some headwinds, the FY2021-22 budget includes significant reserves to meet economic challenges while continuing to provide services that preserve the quality of life for Seaside residents.

Furthermore, the surprisingly strong results for FY2020-21 indicate the City will likely be able to maintain its reserves in the fiscal year 2022-23 budget cycle.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our residents, taxpayers, customer, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report, separate reports of the City’s component units, or need any additional financial information, contact Victor Damiani, the city’s finance director at 440 Harcourt Avenue, Seaside, CA 93955, by phone at (831) 899-6718 or by email at [email protected].

Packet Page 66
Packet Page 67

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Packet Page 68
Packet Page 69

CITY OF SEASIDE

STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(23)
Component Unit
Governmental Business-Type Seaside County
Activities Activities Total Sanitation District
ASSETS
Cash and Investments 48,543,292 $ 294,110 $ 48,837,402 $ 3,987,420 $ Restricted Cash and Investments 51,382 562,064 613,446 - Cash with Fiscal Agents 10,435,624 - 10,435,624 -
Accounts Receivable 7,602,982 85,519 7,688,501 709,513
Deposits with Others 167,452 - 167,452 -
Due from Other Governments 676,148 - 676,148 -
Due from Component Unit 127,118 - 127,118 -
Prepaid Assets 1,000 - 1,000 -
Internal balances 163,383 - (163,383) -
Loans Receivable 1,782,648 - 1,782,648 -
Advances to Private Purpose Trust Fund 2,333,431 - 2,333,431 - Land Held for Resale 658,068 - 658,068 -
Capital Assets:

Nondepreciable 125,844,764 8,617,043 134,461,807 7,074,301 Depreciable, Net 49,066,328 3,035,498 52,101,826 4,067,217 Total Assets 247,453,620 12,430,851 259,884,471 15,838,451

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - Pension 11,247,267 55,249 11,302,516 - Deferred Outflows - OPEB 2,153,047 - 2,153,047 -
Total Deferred Outflows of Resources 13,400,314 55,249 13,455,563 -

LIABILITIES
Accounts Payable 4,034,535 49,203 4,083,738 409,178
Salaries and Benefits Payable 999,518 21,984 1,021,502 - Due to Primary Government - - - 127,118
Interest Payable 97,201 93,796 190,997 1,371
Deposits from Others 109,970 3,117 113,087 12,538
Other Liabilities 156 - 156 21,488
Unearned Revenue 5,779,924 - 5,779,924 -
Noncurrent Liabilities:

Due within One Year 1,509,920 117,419 1,627,339 59,125
Due in More than One Year 20,517,065 3,021,874 23,538,939 312 Total OPEB Liability:

Due within One Year 621,606 - 621,606 -
Due in More than One Year 10,950,154 - 10,950,154 -
Net Pension Liability:

Due in More than One Year 50,823,497 235,730 51,059,227 - Total Liabilities 95,443,546 3,543,123 98,986,669 631,130

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pension 2,618,490 13,350 2,631,840 - Deferred Inflows - OPEB 1,722,828 - 1,722,828 -
Total Deferred Inflows of Resources 4,341,318 13,350 4,354,668 -

NET POSITION
Net Investment in Capital Assets 168,453,241 8,525,675 176,978,916 10,760,535 Restricted for:

Community Services 667,896 - 667,896 2,607,393
Community Development 7,820,011 - 7,820,011 -
Public Safety 642,497 - 642,497 -
Public Works 6,443,299 - 6,443,299 -
Recreation 280,450 - 280,450 -
Other Purposes 675,239 550,633 1,225,872 -
Unrestricted (23,913,563) (146,681) 1,839,393 (24,060,244) Total Net Position 161,069,070 $ 8,929,627 $ 169,998,697 $ 15,207,321 $ Packet Page 70

CITY OF SEASIDE

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(24)
Fees, Fines, Operating Capital
and Charges Grants and Grants and
Functions/Programs Expenses for Services Contributions Contributions Primary Government:

Governmental Activities:

General Government 837,279 $ 196,437 $ 1,736,653 $ - $
Public Safety 23,518,274 306,075 608,069 -
Recreation 2,619,777 58,659 - -
Public Works 16,674,814 890,107 569,036 1,575,799
Community Development 3,423,683 662,754 520,042 -
Debt Service:

Interest and Fiscal Charges 793,191 - - -
Total Governmental Activities 47,867,018 2,114,032 3,433,800 1,575,799 Business-Type Activities:

Water Fund 1,154,566 1,029,925 - -
Golf Fund 386,673 335,013 - -
Total Business-Type Activities 1,541,239 1,364,938 - -
Total Primary Government 49,408,257 $ 3,478,970 $ 3,433,800 $ 1,575,799 $ Component Unit:

Seaside County Sanitation District 1,471,140 $ 2,053,972 $ - $ - $ General Revenues:

Taxes:

Secured and Unsecured Property Taxes
Gas Tax
Transient Occupancy Tax
Franchise Taxes
Utility Users Tax
Business License Taxes
Sales and Use Taxes
Other Taxes
Investment Earnings
Other
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year, as Restated
Net Position - End of Year
Program Revenues
Packet Page 71

CITY OF SEASIDE

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(25)
Component
Unit
Governmental Business-Type Seaside County
Activities Activities Total Sanitation District
$ - 1,095,811 $ 1,095,811 $ - $
- (22,604,130) (22,604,130) -
- (2,561,118) (2,561,118) -
- (13,639,872) (13,639,872) -
- (2,240,887) (2,240,887) -
- (793,191) (793,191) -
- (40,743,387) (40,743,387) -
(124,641) - (124,641) -
(51,660) - (51,660) -
(176,301) - (176,301) -
$ (176,301) (40,743,387) $ (40,919,688) $ - $
$ - - $ - $ 582,832 $
$ - 9,407,981 $ 9,407,981 $ 567,292 $
- 707,659 707,659 -
- 2,661,684 2,661,684 -
- 1,764,353 1,764,353 -
- 2,804,068 2,804,068 -
- 630,058 630,058 -
- 19,498,687 19,498,687 -
- 1,416,668 1,416,668 -
1,865 499,736 501,601 60,480
3,487 1,533,760 1,537,247 -
- - - -
5,352 40,924,654 40,930,006 627,772
(170,949) 181,267 10,318 1,210,604
9,100,576 160,887,803 169,988,379 13,996,717
$ 8,929,627 161,069,070 $ 169,998,697 $ 15,207,321 $
Net Revenue (Expense)
and Changes in Net Position
Packet Page 72
Packet Page 73

BASIC FINANCIAL STATEMENTS
Fund Financial Statements
Packet Page 74

CITY OF SEASIDE

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(26)
FORA Blight Federal Economic Transportation Other
Removal - Bond Recovery Capital Measure X Governmental
General Fund Grants Projects Bond Fund Funds Total
ASSETS
Cash and Investments 17,522,448 $ 6,620,669 $ 4,497,156 $ 1,655,778 $ - $ 15,421,709 $ 45,717,760 $ Restricted Cash and Investments 11,778 - - - - 14,685 26,463 Cash with Fiscal Agent - - - - 9,406,967 1,028,657 10,435,624 Accounts Receivable 6,551,462 - - 200,000 - 818,417 7,569,879 Deposits with Others 167,340 - - - - 112 167,452
Due from Other Governments 236,901 - - - - 566,365 803,266 Due from Other Funds 6,837,744 - - - - - 6,837,744
Loans Receivable 206,997 - - - - 1,575,651 1,782,648
Land Held for Resale - - - - - 658,068 658,068
Prepaid Assets 1,000 - - - - - 1,000
Advances to Other Funds 114,000 - - - - - 114,000
Advances to Private Purpose
Trust Fund 2,333,431 - - - - - 2,333,431
Total Assets 33,983,101 $ 6,620,669 $ 4,497,156 $ 1,855,778 $ 9,406,967 $ 20,083,664 $ 76,447,335 $ .

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES

AND FUND BALANCES
Liabilities:

Accounts Payable 1,242,202 $ 133,760 $ - $ 1,678,490 $ - $ 854,314 $ 3,908,766 $ Accrued Salaries and Benefits 910,743 - - - - 68,072 978,815 Deposits from Others 1,219 - - - - 108,751 109,970
Other Liabilities - - - - - 156 156
Due to Other Funds - - - - 6,037,522 750,839 6,788,361
Unearned Revenue 1,282,768 - 4,497,156 - - - 5,779,924
Total Liabilities 3,436,932 133,760 4,497,156 1,678,490 6,037,522 1,782,132 17,565,992 Deferred Inflows of Resources:

Unavailable Revenue -
Intergovernmental 263,191 - - - - 401,756 664,947
Fund Balances:

Nonspendable 2,655,428 - - - - - 2,655,428
Restricted 482,428 - - 177,288 3,369,445 16,610,271 20,639,432 Committed 11,459,000 6,486,909 - - - 1,575,531 19,521,440 Assigned 504,504 - - - - - 504,504
Unassigned 15,181,618 - - - - (286,026) 14,895,592
Total Fund Balances 30,282,978 6,486,909 - 177,288 3,369,445 17,899,776 58,216,396 Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances 33,983,101 $ 6,620,669 $ 4,497,156 $ 1,855,778 $ 9,406,967 $ 20,083,664 $ 76,447,335 $ Packet Page 75

CITY OF SEASIDE

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION – GOVERNMENTAL ACTIVITIES JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(27)
Fund Balance - Total Governmental Funds 58,216,396 $
Amounts reported for governmental activities in the statement of net position are different because:

Receivables not collected during the availability period are deferred in the fund statements. 664,947
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. This amount does not include internal service fund capital assets. 174,789,167
Deferred outflows of resources reported in statement of net position. 13,400,314 Internal service funds are used by the City to charge the cost of certain activities such as fleet maintenance and insurance, to individual funds. Net position of the internal service funds is reported with the governmental activities. 1,808,286 Deferred inflows of resources reported in statement of net position. (4,341,318) Long-term liabilities, including bonds payable, are not due and payable in the current period, and therefore are not reported in the governmental funds.

Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities are reported in the statement of net position.

Bonds Payable (18,251,495)
Capital Leases (1,381,980)
Accrued Interest on Long-Term Debt (97,107)
Compensated Absences (1,342,883)
Total OPEB Liability (11,571,760)
Net Pension Liability (50,823,497)
Net Position of Governmental Activities 161,069,070 $
Packet Page 76

CITY OF SEASIDE

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(28)
Federal
FORA Blight Economic Transportation Other
Removal - Bond Recovery Capital Measure X Governmental
General Fund Grants Projects Bond Fund Funds Total

REVENUES
Taxes 36,844,311 $ - $ - $ - $ - $ 1,339,188 $ 38,183,499 $ Licenses and Permits 813,155 - - - - - 813,155
Fines and Penalties 109,907 - - - - 6,359 116,266
Use of Money and Property 215,964 20,509 - 178 505 255,762 492,918 Intergovernmental Revenue 2,494,582 1,829 - 200,000 - 3,926,658 6,623,069 Charges for Services 380,559 - - - - 664,680 1,045,239
Other Revenue 909,860 - - - - 623,900 1,533,760
Total Revenues 41,768,338 22,338 - 200,178 505 6,816,547 48,807,906

EXPENDITURES
Current:

General Government 238,695 - - - 150 3,149 241,994
Public Safety 21,107,621 - - - - 347,121 21,454,742
Recreation 2,261,023 - - - - 174,584 2,435,607
Public Works 3,453,028 230,134 - - - 3,880,510 7,563,672 Community Development 2,413,491 - - - - 1,294,732 3,708,223 Capital Outlay - - - 6,661,727 - 584,153 7,245,880
Debt Service:

Principal 129,060 - - - 230,000 853,115 1,212,175
Interest and Fiscal Charges 32,623 - - - 412,750 379,088 824,461 Total Expenditures 29,635,541 230,134 - 6,661,727 642,900 7,516,452 44,686,754

EXCESS (DEFICIENCY) OF

REVENUES OVER (UNDER)
EXPENDITURES (207,796) 12,132,797 - (6,461,549) (642,395) (699,905) 4,121,152

OTHER FINANCING SOURCES
(USES)
Proceeds from Sale of Land
Held for Resale 700,000 - - - - - 700,000
Transfers In 118,981 - - 8,155,513 642,750 2,515,480 11,432,724 Transfers Out (2,483,969) - - - (7,547,451) (1,397,517) (11,428,937) Total Other Financing
Sources (Uses) (1,664,988) - - 8,155,513 (6,904,701) 1,117,963 703,787

NET CHANGES IN FUND
BALANCES (207,796) 10,467,809 - 1,693,964 (7,547,096) 418,058 4,824,939 Fund Balances - Beginning of
Year, Restated 19,815,169 6,694,705 - (1,516,676) 10,916,541 17,481,718 53,391,457

FUND BALANCES -
END OF YEAR $ 6,486,909 30,282,978 $ - $ 177,288 $ 3,369,445 $ 17,899,776 $ 58,216,396 $ Packet Page 77

CITY OF SEASIDE

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES – GOVERNMENTAL ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(29)
Net Change to Fund Balance - Total Governmental Funds 4,824,939 $ Amounts reported for governmental activities in the statement of activities are different because:

Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the governmental funds. (766,439)
Governmental funds report capital asset additions as expenditures.

However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This does not include the internal service fund activity.

Expenditures for General Capital Assets, Infrastructure, and Other Related Capital Assets Adjustments 1,637,427 $
Less: Current Year Depreciation (3,005,477)
(1,368,050)
Proceeds from land held for resale from land donated to the City by FORA, which provides current financial resources to governmental funds, but the sale reduces land held for resale in the statement of net position. (700,000)
The issuance of long-term debt provides current financial resources to Governmental Funds, while the repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. This does not include the internal service fund activity.

Amortization of Premiums on Bonds 13,587
Principal Retirement 990,000
Capital Lease Retirements 222,175
1,225,762
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Change in Net Pension Liability and Related Deferred Inflows/Outflows (3,611,862) Change in Total OPEB Liability and Related Deferred Inflows/Outflows 123,928 Change in Compensated Absences (92,298)
(3,562,549)
Internal service funds are used by management to charge the costs of certain activities to individual funds. The change in net position of the internal service funds is reported with governmental activities. 527,604 Change in Net Position of Governmental Activities 181,267 $ Packet Page 78

CITY OF SEASIDE

STATEMENT OF FUND NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(30)
Governmental
Activities
Internal
Water Golf Service
Fund Fund Total Funds
ASSETS
Current Assets:

Cash and Investments 294,110 $ - $ 294,110 $ 2,825,532 $ Restricted Cash and Investments - 562,064 562,064 24,919 Accounts Receivable 85,519 - 85,519 33,103
Total Current Assets 379,629 562,064 941,693 2,883,554
Capital Assets:

Nondepreciable 77,150 8,539,893 8,617,043 -
Depreciable 2,938,711 3,797,417 6,736,128 768,176
Less: Accumulated Depreciation (2,144,977) (1,555,653) (3,700,630) (646,251) Total Capital Assets, Net 870,884 10,781,657 11,652,541 121,925 Total Assets 1,250,513 11,343,721 12,594,234 3,005,479

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - Pension 55,249 - 55,249 -
Total Deferred Outflows of Resources 55,249 - 55,249 -

LIABILITIES
Current Liabilities:

Accounts Payable 49,203 - 49,203 125,769
Accrued Salaries and Benefits 21,984 - 21,984 20,703
Accrued Interest 41 93,755 93,796 94
Due to Other Funds - 49,383 49,383 -
Deposits from Others 3,117 - 3,117 -
Advances from Other Funds 114,000 - 114,000 -
Compensated Absences 2,107 - 2,107 5,500
Claims Payable - - - 74,238
Capital Leases 5,312 - 5,312 -
Bonds Payable - 110,000 110,000 -
Total Current Liabilities 195,764 253,138 448,902 226,304 Long-Term Liabilities:

Compensated Absences 10,320 - 10,320 46,288
Claims Payable - - - 924,601
Capital Leases 1,348 - 1,348 -
Bonds Payable - 3,010,206 3,010,206 -
Total Pension Liability 235,730 - 235,730 -
Total Long-Term Liabilities 247,398 3,010,206 3,257,604 970,889 Total Liabilities 443,162 3,263,344 3,706,506 1,197,193

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pension 13,350 - 13,350 -
Total Deferred Inflows of Resources 13,350 - 13,350 -

NET POSITION
Net Investment in Capital Assets 864,224 7,661,451 8,525,675 121,925 Restricted for Debt Service - 550,633 550,633 -
Unrestricted (14,974) (131,707) (146,681) 1,686,361
Total Net Position 849,250 $ 8,080,377 $ 8,929,627 $ 1,808,286 $ Business-Type Activities - Enterprise Funds
Packet Page 79

CITY OF SEASIDE

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(31)
Governmental
Activities
Internal
Water Golf Service
Fund Fund Total Funds

OPERATING REVENUES
Charges for Services 1,029,925 $ 335,013 $ 1,364,938 $ 4,840,512 $ Other Revenues 3,487 - 3,487 37,673
Total Operating Revenues 1,033,412 335,013 1,368,425 4,878,185

OPERATING EXPENSES
Salaries and Benefits 167,470 - 167,470 536,720
Services and Supplies 838,476 11,291 849,767 1,043,301
Insurance 26,173 - 26,173 2,440,064
Utilities 52,351 - 52,351 103,560
Depreciation 69,769 155,089 224,858 29,264
Claims and Judgments - - - 200,703
Other Operating Expense - 2,100 2,100 -
Total Operating Expenses 1,154,239 168,480 1,322,719 4,353,612 OPERATING INCOME (LOSS) 166,533 (120,827) 45,706 524,573

NONOPERATING REVENUES (EXPENSES)
Interest Income 1,842 23 1,865 6,818
Interest Expense (327) (218,193) (218,520) -
Total Nonoperating Revenues
(Expenses) 1,515 (218,170) (216,655) 6,818
INCOME (LOSS) BEFORE TRANSFERS (51,637) (119,312) (170,949) 531,391 Transfers Out - - - (3,787)
CHANGE IN NET POSITION (51,637) (119,312) (170,949) 527,604 Net Position - Beginning of Year 968,562 8,132,014 9,100,576 1,280,682 NET POSITION - END OF YEAR $ 8,080,377 849,250 $ 8,929,627 $ 1,808,286 $ Business-Type Activities - Enterprise Funds
Packet Page 80

CITY OF SEASIDE

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(32)
Governmental
Activities
Internal
Water Golf Service
Fund Fund Total Funds

CASH FLOWS FROM OPERATING

ACTIVITIES
Cash Receipts from Interfund Services
Provided - $ - $ - $ 4,860,402 $
Cash Receipts from Customers 988,408 335,013 1,323,421 - Cash Paid to Employees for Services (370,872) - (370,872) (519,259) Cash Paid to Suppliers for Goods
and Services (889,040) (13,391) (902,431) (3,765,681)
Net Cash Provided (Used) by
Operating Activities 321,622 (271,504) 50,118 575,462

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Received From Other Funds 114,000 13,273 127,273 -
Transfers To Other Funds - - - (336,117)
Net Cash Provided (Used) by
Noncapital Financing Activities 114,000 13,273 127,273 (336,117)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets - (2,388) (2,388) (90,780) Disposal of Capital Assets - - - 5,548
Interest Paid (327) (221,256) (221,583) -
Principal Paid on Capital Debt (5,187) (112,432) (117,619) - Net Cash Provided (Used) by
Capital and Related Financing
Activities (7,902) (333,688) (341,590) (85,232)

CASH FLOWS FROM INVESTING

ACTIVITIES
Interest Received 1,842 23 1,865 6,818

NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,230 (163,564) (162,334) 160,931
Cash and Cash Equivalents - Beginning
of Year 457,674 560,834 1,018,508 2,689,520

CASH AND CASH EQUIVALENTS -
END OF YEAR $ 562,064 294,110 $ 856,174 $ 2,850,451 $
Business-Type Activities - Enterprise Funds
Packet Page 81

CITY OF SEASIDE

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(33)
Governmental
Activities
Internal
Water Golf Service
Fund Fund Total Funds

RECONCILIATION OF OPERATING

INCOME (LOSS) TO NET CASH

PROVIDED (USED) BY OPERATING

ACTIVITIES
Operating Income (Loss) (120,827) $ 166,533 $ 45,706 $ 524,573 $ Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:

Depreciation 69,769 155,089 224,858 29,264
Changes in Assets, Deferred Inflows of Resources,
Liabilities, and Deferred Outflows of Resources
(Increase) Decrease in:

Accounts Receivable (45,004) - (45,004) (17,783)
Prepaid Expenses - - - -
Deferred Outflows of Resources 78,675 - 78,675 -
Increase (Decrease) in:

Accounts Payable 27,798 - 27,798 23,424
Accrued Salaries 9,022 - 9,022 5,623
Deposits 162 - 162 -
Compensated Absences (958) - (958) 11,838
Net OPEB Liability - - - -
Net Pension Liability (250,595) - (250,595) -
Claims Liability - - - (1,477)
Deferred Inflows of Resources (39,546) - (39,546) -
Net Cash Provided (Used) by
Operating Activities (271,504) $ 321,622 $ 50,118 $ 575,462 $ Business-Type Activities - Enterprise Funds
Packet Page 82

CITY OF SEASIDE

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(34)
Custodial Private Purpose
Funds Trust Fund
ASSETS
Cash and Investments 1,685,782 $ 1,473,313 $
Accounts Receivable 18,272 6,148
Deposits with Others - 250,000
Other Assets 112,085 -
Capital Assets:

Nondepreciable - 3,884,176
Depreciable, Net - 13,552,879
Total Assets 1,704,054 19,278,601

LIABILITIES
Accounts Payable 57,863 6,878
Deposits Payable - 465
Unearned Revenue - 91,581
Advances from City of Seaside - 2,333,431
Due to Other Governments - -
Due within One Year 110,000 -
Due after One Year 2,233,912 -
Total Liabilities 57,863 4,776,267

DEFERRED INFLOWS OF RESOURCES
Deferred Charge on Refunding 426,693 -

NET POSITION
Restricted for: Individuals, Organizations, and
Other Governments 1,646,191 14,075,641
Total Net Position 1,646,191 $ 14,075,641 $
Packet Page 83

CITY OF SEASIDE

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(35)
Custodial Private Purpose
Funds Trust Fund

ADDITIONS
Taxes and Assessments - $ 382,903 $
Use of Money and Property 33,288 -
Contributions from other local governments and developers - 6,716,658 Total Additions 6,716,658 416,191

DEDUCTIONS
Community Development - 2,375,376
Debt Service:

Interest 19,861 -
Payments to other local governments and developers - 278,146 Total Deductions 278,146 2,395,237
CHANGE IN NET POSITION 6,438,512 (1,979,046)
Net Position - Beginning, Restated 16,054,687 (4,792,321) NET POSITION - ENDED $ 14,075,641 1,646,191 $
Packet Page 84
Packet Page 85

NOTES TO BASIC FINANCIAL STATEMENTS
Packet Page 86

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(36)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of Reporting Entity
The accompanying basic financial statements present the financial activity of the City of Seaside (City), which is the primary government, along with the financial activities of its component units. Component units are legally separate organizations for which the City is financially accountable or other organizations whose nature and significant relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and (i) either the City’s ability to impose its will on the organization or (ii) there is potential for the organization to provide a financial benefit to, or impose a financial burden on, the City.

The basic financial statements include both blended and discretely presented component units. The blended component units, although legally separate entities are, in substance, part of the City’s operations and so data from these units are combined with data of the primary government. The discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize they are legally separate from City government.

The component units included in the City’s basic financial statements are identified below with a brief description of the reason for their inclusion.

Blended Components Units
Seaside Joint Powers Financing Authority – The Seaside Joint Powers Financing Authority (Authority) is a joint powers authority organized pursuant to the State of California Government Code, Section 6500. The Authority exists under a Joint Exercise of Power Agreement dated March 29, 1988, by and between the City and the Agency.

The members of the City Council constitute the members of the Board of Directors of the Authority. The Authority is authorized to borrow money for the purpose of financing the acquisition or construction of capital improvements, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City or Assessment Districts of the City. Currently the Authority has only issued lease revenue bonds to be used to finance the costs of capital improvements to the irrigation system of the City’s Bayonet and Black Horse golf courses.

Separate component unit financial statements for the Authority are not issued.

Discretely Presented Component Unit
Seaside County Sanitation District – The component unit’s column in the basic financial statements includes financial data of the Seaside County Sanitation District (District). It is reported in a separate column to emphasize that it is legally separate from the City. Although it is a legally separate entity, the Seaside County Sanitation District is included as a discretely presented component unit in the City’s financial statements because it is financially accountable to the City.

Packet Page 87

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(37)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of Reporting Entity (Continued)
The District is responsible for the transportation of sewage waste from residential and commercial buildings to a sewage treatment plant operated by the Monterey Regional Waste Pollution Control Agency. The District installs and maintains sewer lines and lift stations. The governing board consists of one appointed member each from the Cities of Del Rey Oaks, Sand City, and Seaside. The City performs maintenance and administrative services for the District. The District is discretely presented because its board is not substantively the same as the City’s governing board, and it does not provide services exclusively to the City.

Financial statements or financial information for the District may be obtained from the City at 440 Harcourt Avenue, Seaside, California 93955.

B. Basis of Presentation
The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

The accompanying financial statements are presented on the basis set forth in GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments.

Government-Wide Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government (the City and its component units). Eliminations have been made to minimize the double counting of internal activities. Governmental activities, which normally are financed by taxes, intergovernmental revenues and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties and charges for support.

The statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment; and 3) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Indirect costs are included in program expenses reported for individual functions and activities because the allocation is automatic and not significant.

Packet Page 88

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Fund Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City reported the following major governmental funds in the accompanying financial statements:
x General Fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City. x FORA Blight Removal - Bond Fund accounts for the removal of blight and remediation activity on former Ft. Ord properties within Seaside. x Transportation Capital Projects Fund accounts for revenues and expenditures for ongoing transportation capital projects. x Measure X Bond Fund accounts for revenues and expenditures related to the issuance of lease revenue bonds used to finance Measure X Road Improvements. x Federal Economic Recovery Grants Fund accounts for revenues and expenditures related to grants provided to the City by the Federal Government.

The City reported the following major enterprise funds in the accompanying financial statements:
x Water Fund accounts for resources used in operating and maintaining the Seaside Municipal Water System.
x Golf Fund accounts for resources used in operating and maintaining the City’s golf courses.

Packet Page 89

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Additionally, the City reported the following fund types:
x Internal Service Funds are used to account for the financing of services provided by one department to other departments of the government, on a cost reimbursement basis.
x Custodial Funds and Private-Purpose Trust Funds are used to account for assets held by the City as an agent for individuals, private businesses and other governmental agencies. These assets include cash deposits which are both expendable and refundable. Refundable cash deposits are held pending satisfactory project completion. The financial activities of these funds are excluded from the Government-Wide financial statements, but are presented in separate Fiduciary Fund financial statements. A Private-Purpose Trust Fund maintained by the City is the Successor Agency. The Successor Agency operates under auspices of the legislatively formed Oversight Board comprised of representatives of local agencies that serve the redevelopment project area. The sole purpose of this fund is to retire debt of the former redevelopment agency.

During the course of operations, the City has activity between funds for various purposes through due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between those funds included in the governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included in internal balances in the business-type activities column.

Further, certain activities occur during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross transfers in/out.

While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between those funds included in the governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between those funds included in the business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column.

C. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources.

The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

Packet Page 90

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting (Continued) The government-wide, discretely presented component unit, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus (excluding fiduciary funds, which do not have a measurement focus) and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis of accounting, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year for which all eligibility requirements have been satisfied.

The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within 90 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they are due and payable. General capital asset acquisitions are reported as expenditures in governmental funds. Issuances of long-term debt and acquisitions under capital leases are reported as other financing sources.

Property taxes, charges for services, intergovernmental revenues, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. Fines, licenses and permits, and other charges for services are not susceptible to accrual because they are not measurable until cash is received. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source. (within 90 days of year-end).

D. Assets, Liabilities, and Net Position or Equity

1. Cash and Investments
The City’s cash and investments are cash on hand, demand deposits, money market funds, investments with fiscal agent, Monterey County Investment Pool, and State of California Local Agency Investment Fund. Investments are stated at fair value (the value at which a financial instrument could be exchanged, other than in a forced or liquidation sale).

Packet Page 91

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)

1. Cash and Investments (Continued)
The City’s cash and cash equivalents for statement of cash flows purposes are considered to be cash on hand, restricted cash, pooled cash, and investments held in an investment pool.

The City’s restricted cash at June 30, 2021 consisted of the following:

General Fund: $11,778 held in escrow for the payment of contracted items.

Debt Service Pension Obligation Fund: $14,685 in residual interest cash held by the trustee until bond payment.

Golf Fund: $562,064 held by trustee for debt service on bond.

Self Insurance Fund: $24,919 held in reserve for payment of Tail claims.

2. Land Held for Resale
Land held for resale is carried at the lower of cost or estimated net realizable value.

Governmental Funds – City property held for affordable housing purposes has been adjusted to the estimated current market value of $658,068, which is also the estimated net realizable value.

3. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure, are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets, including works of art and historical treasurers, and capital assets received in a service concession arrangement are valued at the estimated acquisition value at the date of the donation. The costs of normal maintenance and repairs that do not add value to the assets or materially extend the ages are not capitalized. Capital assets are defined as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year depending on asset type.

Packet Page 92

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)

3. Capital Assets (Continued)
Depreciation is charged to operations using the straight-line method of depreciation over the estimated useful lives of the assets as follows:

Buildings 20-50 Years
Improvements 33-60 Years
Equipment 2-15 Years
Streets 20 Years
Parks 20 Years
Curb and Gutter 20 Years
Storm Drains 50 Years

4. Compensated Absences
All vacation paid is accrued when incurred in the government-wide and proprietary funds financial statements. This liability is set up for the current employees at the current rates of pay. Unused vacation leave may be carried over and utilized or paid at time of termination from the City’s employment. The maximum vacation leave that can be carried over to January 1 of any future year is two years’ earned vacation, except for the Supervisors and Managers group which can carry over three years’ earned vacation.

Unused sick leave accumulated before December 1, 1978, may be carried over and utilized or paid at the time of termination. The balance of unused sick leave is convertible to California Public Employees’ Retirement System (PERS) service credits upon retirement.

The General Fund is primarily responsible for the repayment of the governmental portion of compensated absences.

5. Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement No. 63, “Financial Reporting of Deferred Outflows or Resources, Deferred Inflows of Resources, and Net Position”, and GASB Statement No. 65, “Items Previously Reported as Assets and Liabilities,” the City recognizes deferred outflows of resources and/or deferred inflows of resources in the government-wide statement of net position, governmental funds balance sheets, and proprietary funds statement of net position.

In addition to assets, the financial statements will sometimes report a separate section for deferred outflows of resources. Deferred outflows represent a consumption of net position by the City that is applicable to a future reporting period and will not be recognized as an outflow of resources (expense/expenditures) until that time.

Packet Page 93

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(43)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)

5. Deferred Outflows and Inflows of Resources (Continued) In addition to liabilities, the financial statements will sometimes report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position by the City that is applicable to a future reporting period and will not be recognized as an inflow of resources (revenue or a credit to expense) until that time.

6. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ 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 General Fund is primarily responsible for the repayment of the governmental portion of the Net Pension Liability.

7. Other Postemployment Benefits (OPEB)
For the purposes of measuring the net OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense, and information about the fiduciary net position of the City’s OPEB plan have been determined using the flow of economic resources measurement focus and full accrual basis of accounting. For this purpose, benefit payments are recognized when due and payable in accordance with benefit terms. No investments are reported because the City meets obligations of its closed OPEB plan on a pay-as-you-go basis.

The General Fund is primarily responsible for the repayment of the governmental portion of the Net OPEB Liability.

Packet Page 94

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(44)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)

8. Property Taxes
Property taxes in the State of California are administered for all local agencies at the county level and consist of secured, unsecured, and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:

Property Valuations are established by the Assessor of the County of Monterey (County) for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13) adopted by the voters on June 6, 1978, properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.

Tax Levies are limited to 1% of full market value, which results in a tax rate of $1.00 per $100 assessed valuation under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.

Tax Lien Dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied as of July 1 of the fiscal year on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

Tax Collections are the responsibility of the County tax collector. Taxes and assessments on secured and utility tolls which constitute a lien against the property may be paid in two installments. The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10. The second is due on February 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.

Tax Levy Apportionments – Due to the nature of the City-wide maximum levy, it is not possible to identify general purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by the County Auditor-Controller based primarily on the ratio that each agency represented of the total City-wide levy for the three years prior to fiscal year 1979.

Packet Page 95

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)

8. Property Taxes (Continued)
Property Tax Administration Fees – The State of California fiscal year 1990-1991 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes.

9. Net Position
Net Position is the excess of all the City’s assets and deferred outflows, if any, over all its liabilities and deferred inflows, if any, regardless of fund. Net Position is divided into three captions under GASB Statement No. 34. These captions apply only to Net Position, which is determined only at the Government-Wide level and for Proprietary and Fiduciary funds, and are described below:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation, less the outstanding balance of any debt issued to finance these assets.

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

Unrestricted Net Position – This amount is all net position that does not meet the definition of “invested in capital assets, net of related debt” or “restricted net position.”

10. Fund Balance
In March 2009, GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. These classifications are described below:

Nonspendable Fund Balance – Amounts that are inherently nonspendable such as inventory or long-term receivables.

Restricted Fund Balance – Amounts that have externally enforceable limitations on use that are either imposed by law or constrained by grantors, contributors, or laws and regulations of other governments. Components of this fund balance category include Housing note and loan receivables, advances, and land held for resale, the cash proceeds from which will be restricted.

Packet Page 96

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(46)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)

10. Fund Balance (Continued)
Committed Fund Balance – Amounts that can only be used for specific purposes determined by formal action of the City’s highest level of decision-making authority.

The City Council is the highest level of decision-making authority for the City that can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. The formal action must occur prior to the end of the reporting period; however, the amount can be determined subsequently.

Assigned Fund Balance – Amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. The intent can be expressed by the City Council itself with the adoption of the annual budget.

Unassigned Fund Balance – The residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories. This amount is reported only in the General Fund except in cases of negative fund balance. Negative fund balances in other governmental funds are reported as Unassigned Fund Balance.

The accounting policies of the City consider restricted fund balance to have been spent first when an expenditure is incurred if both restricted and unrestricted fund balances are available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.

In addition, GASB Statement No. 54 clarifies the required fund balance reporting for stabilization or rainy-day arrangements. The City’s Special Reserve and Emergency Reserves fall under the definition of Stabilization Arrangements. Because the City Council adopted an ordinance identifying specific purposes for the Special and Emergency Reserves, these reserve balances will be classified as committed. The Emergency Reserves were established to be used for nonbudgeted emergencies that may occur, including weather emergencies, economic emergencies, equipment breakdown emergencies, and other unforeseen emergencies. The Special Reserve is established to be used for extraordinary items that may arise from time to time.

The amount of stabilization fund balance was $11,459,000 for the fiscal year ended June 30, 2021.

Packet Page 97

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(47)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)

10. Fund Balance (Continued)
Stabilization arrangements that do not meet the criteria to be reported within the restricted or committed fund balance classifications must be reported as unassigned in the General Fund. The policy also includes the City’s priorities for spending fund balance. The City’s spending priority is to spend restricted fund balance first, as allowed, followed by committed, assigned, and then unassigned fund balance.

Most nongeneral funds were designated for one purpose at the time of their creation.

Therefore, expenditures made out of a fund will be allocated to the applicable fund balance classifications in the order of the spending policy above (refer to Note 4 – Other Information, under Fund Balances).

E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, as prescribed by GASB, requires management to make assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates.

NOTE 2 DEFICIT FUND BALANCES
The following funds had deficit fund balances or net position at June 30, 2021:

Nonmajor Governmental Funds:

Storm Water Fund 2,764
Proposition 172 Fund 24,566
Laguna Grande Project Fund 5,293
PEG Access Fund 1,115
SAFER FEMA Grant Fund 170,104
General Capital Projects Fund 82,184
These deficits are expected to be eliminated with future revenues from services, fees, reimbursements from federal agencies, and interfund transfers.

Packet Page 98

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(48)
NOTE 3 DETAILED NOTES ON ALL FUNDS
A. Cash and Investments
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 48,837,402 $
Restricted Cash and Investments 613,446
Cash with Fiscal Agents 10,435,624
Fiduciary Funds:

Cash and Investments 3,159,095
Restricted Cash and Investments -
Discretely Presented Component Unit:

Cash and Investments 3,987,420
Total Cash and Investments 67,032,987 $
Cash and investments as of June 30, 2021 consisted of the following:

Cash on Hand 8,462 $
Deposits with Financial Institution 42,040,706
Investments 24,983,819
Total Cash and Investments 67,032,987 $
Custodial Credit Risk Related to Deposits
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover deposits or will not be able to recover collateral securities that are in possession of an outside party. This risk is mitigated in that of the City’s total bank balance, $500,000 is insured by the Federal Depository Insurance Corporation. The remaining $42,167,556 on deposit is collateralized with securities held by the pledging financial institution’s agent. Per Government Code Section 53652, the depository is required to maintain a market value of at least 110% of the pledged collateral.

At June 30, 2021, the carrying amount of the City’s deposits was $42,667,556, and the corresponding bank balance was $42,622,494. The difference of $45,062 was principally due to outstanding checks and deposits in transit.

Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy authorizes investment in all investments authorized under provisions of California Government Code Section 53601. Certain investments authorized by the code are limited to maximum portfolio percentages and maximum maturities.

Packet Page 99

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(49)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America.

These principles recognize a three-tiered fair value hierarchy, as follows:
x Level 1 – Investments reflect prices quoted in active markets; x Level 2 – Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and,
x Level 3 – Investments reflect prices based upon unobservable sources.

The City has the following recurring fair value measurements as of June 30, 2021:

Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level Total (Level 1) (Level 2) (Level 3) Held by Fiscal Agent:

Mutual Funds 6,437,751 $ 6,437,751 $ - $ - $
Investments measured at amortized costs:

State Investment Pool (LAIF) 18,546,068
Total Pooled and Directed
Investments 24,983,819 $
Fair Value Measurement Using
Packet Page 100

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(50)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

Maturity
(in Months)
12 Months
Investment Type or Less
State Investment Pool (LAIF) $ 18,546,068
Held by Fiscal Agents:

Money Market Funds 6,437,751
Total Investments 24,983,819 $
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations As of June 30, 2021, and during the 2020-2021 fiscal year, the City did not hold or purchase investments that were highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, and the actual rating as of year-end for each investment type. The Local Agency Investment Fund (LAIF) and the County Investment Pool do not have a rating provided by a nationally recognized statistical rating organization.

Percent of
Investment Type Moody's Portfolio Fair Value
State Investment Pool - LAIF Not Rated 74.23% 18,546,068 $ Held by Fiscal Agent:

US Bank Money Market Not Rated 25.77% 6,437,751
Total 100% 24,983,819 $
Packet Page 101

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(51)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Concentration of Credit Risk
The City’s investment policy contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of the City’s investments (external investment pools and mutual funds are excluded from this disclosure requirement).

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by State or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under State law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

GASB Statement No. 40, Deposit and Investment Risk Disclosures, requires that the following disclosure be made with respect to custodial credit risks relating to deposits and investments: None of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.

Investment in State Investment Pool
The City is a voluntary participant in the State of California Local Agency Investment Fund (LAIF). LAIF is part of the Pooled Money Investment Account (PMIA), an investment pool consisting of funds held by the state in addition to those deposited in LAIF. All PMIA funds are managed by the Investment Division of the State Treasurer’s Office. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California Government Code.

Participants in the pool include voluntary and involuntary participants, such as special districts and school districts for which there are legal provisions regarding their investments. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute.

Packet Page 102

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(52)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Investment in State Investment Pool (Continued)
At June 30, 2021, the City’s investment position in the State of California Local Agency Investment Fund (LAIF) was $18.5 million. The total amount invested by all public agencies in LAIF on that day was $193.46 billion. Of that amount, 2.31% was invested in medium-term and short-term structured notes and asset backed securities and the remaining 97.69% was invested in other nonderivative financial products.

Investment in the Monterey County Investment Pool
The City is a voluntary participant in the County Investment Pool which is regulated by the California Government Code under the oversight of the County Treasurer. The fair value of the City’s investment in this pool is reported in the accompanying financial statement at amounts based upon the City’s pro-rata share of the fair value provided by the County Treasurer for the entire investment portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on accounting records maintained by the County Treasurer. The average maturity of the County Investment Pool was 167 days.

B. Loans Receivable
Housing Rehabilitation and Affordable Housing Loans:

The City engages in programs designed to encourage construction or improvement in low-to-moderate income housing or other projects. Under these programs, grants or zero interest loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. The balance of the loans receivable arising from these programs at June 30, 2021, was $1,454,681.

Further, the City had loans of $320,970 from CDBG programs, and $6,997 in employee housing loans, for a total loans receivable balance of $1,782,648.

Packet Page 103

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(53)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
C. Capital Assets
Capital asset activity for the year ended June 30, 2021 for governmental activities was as follows:

Restated
Balance Balance
July 1, 2020 Additions Retirements June 30, 2021
Governmental Activities
Capital Assets, not being Depreciated:

Land 121,461,136 $ - $ (700,000) $ 120,761,136 $
Construction in Progress 680,835 1,302,598 (1,151,799) 831,634 Intangibles (Nondepreciable) 4,251,994 - - 4,251,994
Total Capital Assets, not
being Depreciated 126,393,965 1,302,598 (1,851,799) 125,844,764 Capital Assets, being Depreciated:

Infrastructure (Depreciable) 93,600,056 - (9) 93,600,047 Structures and Improvements 16,036,551 555,460 (20,327) 16,571,684 Equipment 12,738,904 1,049,909 (244,551) 13,544,262
Intangibles (Depreciable) 6,514,798 - - 6,514,798
Total Capital Assets,
being Depreciated 128,890,309 1,605,369 (264,887) 130,230,791 Less Accumulated Depreciation for:

Infrastructure (Depreciable) (58,893,421) (1,319,752) (491) (60,213,664) Structures and Improvements (8,722,259) (679,040) 40,381 (9,360,918) Equipment (8,636,743) (814,790) 191,488 (9,260,045)
Intangibles (Depreciable) (2,108,677) (221,159) - (2,329,836) Total Accumulated Depreciation (78,361,100) (3,034,741) 231,378 (81,164,463) Total Capital Assets, being
Depreciated, Net 50,529,209 (1,429,372) (33,509) 49,066,328 Governmental Activities,
Capital Assets, Net 176,923,174 $ (126,774) $ (1,885,308) $ 174,911,092 $ Depreciation Allocation
Depreciation expense was charged to function and programs based on their usage of the related assets. The amounts allocated to each function or program, were as follows:

General Government 7,198 $
Public Safety 510,182
Public Works 2,287,267
Community Development 112,818
Recreation 88,012
Capital Assets Held by the Government's
Internal Service Funds are Charged to
the Various Functions Based on their
Usage of the Assets 29,264
Total 3,034,741 $
Packet Page 104

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(54)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
C. Capital Assets (Continued)
Capital asset activity for the year ended June 30, 2021 for business-type activities was as follows:

Balance Balance
July 1, 2020 Additions Retirements June 30, 2021
Business-Type Activities
Capital Assets, not being Depreciated:

Land 8,539,893 $ - $ - $ 8,539,893 $
Construction in Progress 33,570 2,388 - 35,958
Intangibles (Nondepreciable) - 41,192 - 41,192
Total Capital Assets, not
being Depreciated 8,614,655 2,388 - 8,617,043
Capital Assets, being Depreciated:

Infrastructure (Depreciable) - 2,295,855 - 2,295,855
Land Improvements 3,497,417 - - 3,497,417
Structures and Improvements 703,785 - - 703,785
Equipment 245,520 - 239,071 (6,449)
Total Capital Assets,
being Depreciated 6,742,577 - 6,736,128 (6,449)
Less Accumulated Depreciation for:

Infrastructure (Depreciable) (1,752,933) - (38,359) (1,791,292) Land Improvements (1,163,897) - (145,089) (1,308,986)
Structures and Improvements (414,215) - (22,569) (436,784) Equipment (151,176) 6,449 (18,841) (163,568)
Total Accumulated Depreciation (3,482,221) 6,449 (224,858) (3,700,630) Total Capital Assets, being
Depreciated, Net 3,260,356 - (224,858) 3,035,498
Business-Type Activities,
Capital Assets, Net 11,875,011 $ $ - (222,470) $ 11,652,541 $ Depreciation Allocation
Depreciation expense of $69,769 was charged to the Water Fund and $155,089 was charged to the Golf Fund.

Packet Page 105

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(55)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
D. Interfund Receivables, Payables, and Transfers

1. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid within one year. The following is a summary of interfund balances as of June 30, 2021.

Fund Due From Due To
Governmental Funds:

General Fund 6,837,744 $ - $
Measure X - 6,037,522
Nonmajor Governmental Funds - 750,839
Proprietary Funds:

Golf Fund - 49,383
Total 6,837,744 $ 6,837,744 $
The purpose of Due To/Due From was to cover negative cash balances in these funds.

2. Long-Term Interfund Advances
At June 30, 2021, the funds below had made advances which were not expected to be repaid within the next year.

Fund Advances To Advances From
Governmental Funds:

General Fund 2,447,431 $ - $
Proprietary Funds:

Water Fund - 114,000
Fiduciary Funds:

Private-Purpose Trust Fund - 2,333,431
Total 2,447,431 $ 2,447,431 $
The purpose of the Advances To/Advances From was the following:
(1) During the fiscal year 2011-2012, the City Council approved resolution SA 2012- 10 authorizing a loan pursuant to AB 1484 between the City and the Successor Agency. The loan became an enforceable obligation after the City completed a series of dissolution steps and received a Finding of Completion on March 28, 2014. The outstanding balance at June 30, 2021 was $2,333,431. (2) During the fiscal year 2020-2021, the City Council approved a loan from the City to the Water fund in the amount of $114,000 for capital maintenance work on the utility’s water tanks. The loans is to be paid with three equal annual principal payments of $38,000 plus simple interest at the then current LAIF rate of 0.38% Packet Page 106

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(56)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
D. Interfund Receivables, Payables, and Transfers (Continued)

3. Interfund Transfers
Fund Transfers In Transfers Out
Governmental Funds:

General Fund 118,981 $ 2,483,969 $
Transportation Capital Projects Fund 8,155,513
Measure X Bond Fund 642,750 7,547,451
Nonmajor Governmental Funds 2,515,480 1,397,517
Proprietary Funds:

Internal Service Funds - 3,787
Total 11,432,724 $ 11,432,724 $
In general, the City uses interfund transfers to (1) move revenues from the funds that collect them to the funds that statute or budget requires to expend them, (2) use unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds in accordance with budgetary authorization, and (3) move revenues to cover capital project and debt service expenditures.

E. Long-Term Liabilities

1. Changes in Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2021 was as follows:

Amount Due
Balance Balance Within One
July 1, 2020 Additions Reductions June 30, 2021 Year
Governmental Activities
Direct Borrowings:

Tax Pension Obligation Bond 3,310,000 $ - $ 570,000 $ 2,740,000 $ 625,000 $ Measure X Bond 10,795,000 - 230,000 10,565,000 235,000
Cutino Park Improvement Bond 4,875,000 - 190,000 4,685,000 195,000 Unamortized Premiums 275,082 - 13,587 261,495 -
Capital Leases 1,604,155 - 222,175 1,381,980 221,131
Claims Payable 1,000,316 200,703 202,180 998,839 74,238 Compensated Absences 1,290,535 1,029,834 925,698 1,394,671 159,551 Total Governmental Activities 23,150,088 $ 1,230,537 $ 2,353,640 $ 22,026,985 $ 1,509,920 $ Business-Type Activities
Direct Borrowings:

Lease Revenue Bonds 3,275,000 $ - $ 115,000 $ 3,160,000 $ 110,000 $ Unamortized Discount - (42,362) (2,568) - (39,794)
Capital Leases 11,847 - 5,187 6,660 5,312
Compensated Absences 13,385 - 958 12,427 2,107
Total Business-type Activities 3,257,870 $ - $ 118,577 $ 3,139,293 $ 117,419 $ Fiduciary Fund
Tax Allocation Bonds 1,950,000 $ - $ 100,000 $ 1,850,000 $ 110,000 $ Unamortized Premiums on Bonds 534,772 - 40,860 493,912 - Total Fiduciary Activities 2,484,772 $ - $ 140,860 $ 2,343,912 $ 110,000 $ Packet Page 107

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(57)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities (Continued)

2. Governmental Activities
Taxable Pension Obligation Bonds
On April 1, 2007, the City, pursuant to an Agreement with the California State-Wide Communities Development Authority, issued $6,880,000 of Pension Obligation Bonds. The aggregate total amount of the bonds for all agencies was $87,475,699, which includes $65,140,000 of Series A-1 current interest and $22,335,699 of Series A-2 capital appreciation bonds. The City participated only in the issuance of Series A-1 Bonds. Interest on the Series A-1 Bonds is payable on June 1 and December 1, commencing December 1, 2007. The rate of interest varies from 5.06% to 5.50% per annum. Principal is payable in annual installments ranging from $55,000 to $745,000, commencing on December 1, 2007, with final maturity in fiscal year 2025.

The balance outstanding as of June 30, 2021 was $2,740,000.

Optional Redemption: The Series A-1 Current Interest Bonds maturing on or before June 1, 2017, will not be subject to optional redemption. The bonds maturing on June 1, 2022, are subject to optional redemption prior to maturity at the option of the Authority, or in part on any date at a redemption price equal to the greater of (1) 100% of principal to be redeemed or (2) present value of the remaining debt service discounted at Treasury Rate plus 12.5 basis points, plus accrued and unpaid interest on the Redeemable Term Bonds being redeemed to the date fixed for redemption. The remaining bond maturities are as follows:

Fiscal Year Ending June 30, Principal Interest Total
2022 625,000 $ 150,262 $ 775,262 $
2023 690,000 115,986 805,986
2024 680,000 78,146 758,146
2025 745,000 40,856 785,856
Total 2,740,000 $ 385,250 $ 3,125,250 $
Packet Page 108

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(58)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities (Continued)

2. Governmental Activities (Continued)
Cutino Park Lease Revenue Bonds
On October 1, 2018, the City of Seaside Joint Powers Financing Authority (Authority) issued Lease Revenue Bonds (Cutino Park Improvement Project) Series 2018 (Cutino Park Bonds) for a total of $5,060,000 at interest rates varying between

3.00%-5.00% over the next 20 years. The final payment on the Cutino Park Bonds will be May 1, 2038. These Cutino Park Bonds are payable solely from and secured by a lease agreement between the Authority and the City of Seaside. Proceeds from the bonds will be used to (1) finance the costs of acquisition, construction, improvement, rehabilitation, and renovation of Cutino Park, (2) fund capitalized interest on the Cutino Park Bonds through and including November 1, 2019, and (3) pay costs of issuance of the Cutino Park Bonds. The lease payments received by the City are pledged to pay the scheduled principal and interest payments on the lease revenue bonds. The outstanding bonds mature as follows:

Fiscal Year Ending June 30, Principal Interest Total
2022 195,000 $ 182,169 $ 377,169 $
2023 200,000 174,369 374,369
2024 210,000 166,369 376,369
2025 220,000 155,869 375,869
2026 230,000 144,869 374,869
2027-2031 1,330,000 545,694 1,875,694
2032-2036 1,585,000 291,875 1,876,875
2037-2038 715,000 38,713 753,713
Total 4,685,000 $ 1,699,925 $ 6,384,925 $
Packet Page 109

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(59)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities (Continued)

2. Governmental Activities (Continued)
Measure X Lease Revenue Bonds
On October 1, 2018, the City of Seaside Joint Powers Financing Authority (Authority) issued Lease Revenue Bonds (Measure X Road Improvements) Issue of 2018 (Measure X Bonds) for a total of $11,050,000 at interest rates varying between

3.00%-5.00% over the next 20 years. The final payment on the Measure X Bonds will be May 1, 2047. These Measure X Bonds are payable solely from and secured by a lease agreement between the Authority and the City of Seaside. Proceeds from the bonds will be used to (1) finance the costs of rehabilitation, reconstruction, preservation, and improvement of public streets and roadways within the corporate limits of the City and (2) pay costs of issuance of Measure X Bonds. The lease payments received by the City are pledged to pay the scheduled principal and interest payments on the lease revenue bonds. The outstanding bonds mature as follows:

Fiscal Year Ending June 30, Principal Interest Total
2022 235,000 $ 404,100 $ 639,100 $
2023 245,000 394,700 639,700
2024 255,000 384,900 639,900
2025 270,000 372,150 642,150
2026 285,000 358,650 643,650
2027-2031 1,630,000 1,573,650 3,203,650
2032-2036 1,945,000 1,262,488 3,207,488
2037-2041 2,305,000 899,688 3,204,688
2042-2046 2,775,000 435,938 3,210,938
2047 620,000 23,250 643,250
Total 10,565,000 $ 6,109,513 $ 16,674,513 $
Packet Page 110

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(60)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities (Continued)

3. Business-Type Activities
Golf Course Lease Revenue Bonds
On December 14, 2006, the City of Seaside Joint Powers Financing Authority issued the Lease Revenue Bonds, Series 2006. The bond proceeds were used to finance the costs of capital improvements to the irrigation system of the City’s Bayonet and Black Horse Golf Courses. Interest rates range from 6.70% to 7.125% and interest is payable semiannually on each February 1 and August 1. The lease payments received by the City are pledged to pay the scheduled principal and interest payments on the lease revenue bonds. Principal matures annually each August 1 through fiscal year 2037. The outstanding bonds mature as follows:

Fiscal Year Ending June 30, Principal Interest Total
2022 110,000 $ 221,162 $ 331,162 $
2023 120,000 213,037 333,037
2024 130,000 204,131 334,131
2025 135,000 194,691 329,691
2026 145,000 184,716 329,716
2027-2031 915,000 743,671 1,658,671
2032-2036 1,290,000 354,470 1,644,470
2037 315,000 11,222 326,222
Total 3,160,000 $ 2,127,100 $ 5,287,100 $
Capital Leases Payable
The City has entered into certain capital lease agreements under which the related equipment will become the property of the City when all terms of the lease agreements are met.

Present Value
Stated of Remaining
Interest Payments as of
Rate June 30, 2021
Governmental Activities:

Equipment and Vehicles 3.00%-7.29% 1,002,956 $
Structures and Improvements 3.03% 379,024
1,381,980
Business-type Activities:

Vehicle 3.00% 6,660
Total Capital Lease Obligations 1,388,640 $
Packet Page 111

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(61)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities (Continued)

3. Business-Type Activities (Continued)
The assets acquired through capital leases are as follows:

Governmental Business-type
Activities Activities
Asset:

Structures and Improvements 908,499 $ - $
Equipment and Vehicles 2,583,382 25,490
Less: Accumulated Depreciation (1,671,021) (19,117)
Total 1,820,860 $ 6,373 $
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2021 are as follows:

Governmental Business-type
Fiscal Year Ending June 30, Activities Activities
2022 257,978 $ 5,425 $
2023 246,470 1,356
2024 242,634 -
2025 177,183 -
2026 155,368 -
2027-2031 438,860 -
2032 21,354 -
Total Minimum Lease Payments 1,539,847 6,781
Less: Amount Representing Interest (157,867) (121)
Present Value of Minimum Lease Payments 1,381,980 $ 6,660 $ Packet Page 112

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(62)
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities (Continued)

4. Fiduciary Funds
Tax Allocation Bonds
Merged Project Area, Former Redevelopment Agency (Agency) of the City of Seaside
On September 24, 2003, the Agency issued the Merged Project Area, Tax Allocation Bonds, Series 2003. The bond proceeds are used in the Merged Project Area.

Interest is payable semiannually each February 1 and August 1, and ranges from

3.25% to 5.00%. Principal matures annually each August 1 through fiscal year 2014.

On February 1, 2012, after the Redevelopment Dissolution Act, this debt was transferred to the Redevelopment Successor Agency of the City. On December 23, 2014, the 2003 series bonds were refunded and are now series 2014. The outstanding bonds mature as follows:

Fiscal Year Ending June 30, Principal Interest Total
2022 110,000 $ 69,013 $ 179,013 $
2023 115,000 63,387 178,387
2024 120,000 44,903 164,903
2025 125,000 44,903 169,903
2026 135,000 44,903 179,903
2027-2031 740,000 145,549 885,549
2032-2034 505,000 39,925 544,925
Total 1,850,000 $ 452,582 $ 2,302,582 $
NOTE 4 OTHER INFORMATION
A. Pension Plans

1. General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by CalPERS. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Packet Page 113

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(63)
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)

1. General Information about the Pension Plans (Continued) Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The City established a PARS Supplemental Retirement Plan, an agent multiple employer plan, for Miscellaneous (Non-LIUNA) full-time employees who worked for the City on or after July 1, 2002. The SRP provides an additional benefit so that a participant’s total benefit, including the CalPERS benefit is 2.5% at 55. The SRP is closed to new hires on and after July 1, 2010.

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

Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.0 @ 55 2% @ 62
Benefit Vesting Schedule 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 - 63 52 - 67
Monthly Benefits, as a % of Eligible Compensation 1.426% to 2.418% 1.0% to 2.5% Required Employee Contribution Rates 7% 6.25%
Required Employer Contribution Rates 11.92% 6.25%
Miscellaneous
Fire Safety
Safety Tier 1 Tier 1
Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 3.0% @ 50 2.0% @ 50
Benefit Vesting Schedule 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 50 - 63
Monthly Benefits, as a % of Eligible Compensation 3% 2.0% - 2.7% Required Employee Contribution Rates 9% 9%
Required Employer Contribution Rates 28.65% 20.92%
Packet Page 114

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(64)
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)

1. General Information about the Pension Plans (Continued) PARS

2.5% @ 55
Benefit Formula Minus 2.0% at 55
Benefit Vesting Schedule 3 Years Service
Benefit Payments Monthly for Life
Retirement Age 50
Monthly Benefits, as a % of Eligible Compensation 0.50% Required Employee Contribution Rates -%
Required Employer Contribution Rates 13.86%
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2021, the contributions the City recognized as part of pension expense were $4,914,725.

2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate
Share of Net
Pension
Liability
Miscellaneous 15,453,175 $
Safety 34,582,790
PARS 1,023,262
Total Net Pension Liability (Asset) $ 51,059,227
Packet Page 115

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(65)
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)

2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The City’s net pension liability for the Miscellaneous and Safety plans is measured as the proportionate share of the net pension liability. The net pension liability of the Miscellaneous and Safety Plans is measured as of June 30, 2019, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2020 and 2021 was as follows:

Miscellaneous Safety Total
Proportion - June 30, 2020 0.35545% 0.50720% 0.44790%
Proportion - June 30, 2021 0.36636% 0.51908% 0.45987%
Change - Increase (Decrease) 0.01091% 0.01188% 0.01197% Change in the Net Pension Liability – PARS Plan
The net pension liability of the PARS Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020.The change in the Net Pension Liability for the PARS Plan is as follows:

Total Plan Net Pension
Pension Fiduciary Net Liability
Liability Position (Asset)
Balances - June 30, 2020 2,669,768 $ 1,731,914 $ 937,854 $ Changes in the Fiscal Year:

Service Cost 32,113 - 32,113
Interest on Total Pension Liability 165,908 - 165,908
Effect of economic/demographic
gains or losses 301,321 - 301,321
Effect of assumptions changes
or inputs - - -
Benefit Payments (303,665) (303,665) -
Employer Contributions - 67,961 (67,961)
Net investment Income - 353,468 (353,468)
Administrative Expenses - (7,495) 7,495
Net Changes 195,677 110,269 85,408
Balances - June 30, 2021 2,865,445 $ 1,842,183 $ 1,023,262 $ Packet Page 116

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(66)
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)

2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the year ended June 30, 2021, the City recognized total pension expense of $8,070,907, including $558,555 for the PARS plan, $2,404,055 for the miscellaneous plan and $5,352,512 for the safety plan. Pension expense represents the change in net pension liability during the measurement period, adjusted for actual contributions and for the deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method, and plan benefits.

Deferred Outflows and Inflows - Miscellaneous Plan
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the miscellaneous plan from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date 1,559,816 $ - $
Change in Proportion 806,574 122,939
Change in Assumptions - 110,218
Differences Between Expected and Actual
Experience 796,348
Difference in Actual Contribution vs.

Proportionate Share of Contributions - 641,986
Net Differences Between Projected and Actual
Earnings on Plan Investments 459,061
Total 3,621,799 $ 875,143 $
Packet Page 117

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(67)
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)

2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Deferred Outflows and Inflows – Safety Plan
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the safety plan from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date 3,286,948 $ - $
Change in Proportion 847,424 -
Change in Assumptions - 115,196
Differences Between Expected and Actual
Experience 2,681,720 -
Difference in Actual Contribution vs.

Proportionate Share of Contributions - 1,487,874
Net Differences Between Projected and Actual
Earnings on Plan Investments 751,630 -
Total 7,567,722 $ 1,603,070 $
Deferred Outflows and Inflows - PARS Plan
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the PARS pension plan from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Net Differences Between Projected and Actual
Earnings on Plan Investments - $ 153,627 $
Differences Between Expected and Actual
Experience 112,995 -
Change in Assumptions - -
Total 112,995 $ 153,627 $
Packet Page 118

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(68)
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)

2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The City reported $4,846,764 as deferred outflows of resources related to contributions subsequent to the measurement date which will be recognized as a reduction of the net pension liability in the year ended 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:

Miscellaneous
Year Ending June 30, Plan Safety Plan PARS Plan Total
2022 112,215 $ 482,330 $ 81,536 $ 676,081 $
2023 530,734 1,042,204 (34,841) 1,538,097
2024 323,712 776,562 (37,594) 1,062,680
2025 220,179 376,608 (49,733) 547,054
Total 1,186,840 $ 2,677,704 $ (40,632) $ 3,823,912 $
Actuarial Assumptions – The total pension liabilities in the June 30 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Miscellaneous
Hired Prior to Hired After to Fire Safety
1/1/2013 1/1/2013 Safety Tier 1 Tier 2 PARS
Valuation Date June 30, 2019 June 30, 2019 June 30, 2019 June 30, 2019 June 30, 2019 Measurement Date June 30, 2020 June 30, 2020 June 30, 2020 June 30, 2020 June 30, 2020 Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15% 7.15% 7.15% 7.00%
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Payroll Growth
Investment Rate of Return 7.15% (2) 7.15% (2) 7.15% (2) 7.15% (2) 7.0% (2) Mortality
(1) Depending on age, service, and type of employment.
(2) Net of pension plan investment expenses, including inflation. (3) Graded based on years of service. 3.5% after 30 years of services.

Entry-Age Normal Cost Method
Varies by Entry Age and Service
Based on CalPERS Specific Data
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2013 valuation were based on the results of a January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was

7.15% for the Miscellaneous and Safety Plans, and 6.50% for the PARS plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% 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.

Packet Page 119

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(69)
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)

2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
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 long-term 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.

Real Return Real Return
New Strategic Years 1 - Years 11 +
Asset Class Allocation 10 (a) (b)
Global Equity 50.0 % 4.80 % 5.98 %
Fixed Income 28.0 1.00 2.62
Inflation Assets - 0.77 1.81
Private Equity 8.0 6.30 7.23
Real Assets 13.0 3.75 4.93
Liquidity 1.0 - (0.92)
Total 100.0 %
(a) An expected inflation of 2.0% used for this period. (b) An expected inflation of 2.92% used for this period.

Packet Page 120

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(70)
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)

2. 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 each Plan, calculated using the discount rate for each 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:

Miscellaneous Safety PARS
1% Decrease 6.15% 6.15% 5.50%
Net Pension Liability $ 50,591,723 29,194,300 $ 1,268,948 $ Current Discount Rate 7.15% 7.15% 6.50%
Net Pension Liability $ 34,582,790 15,453,175 $ 1,023,262 $ 1% Increase 8.15% 8.15% 7.50%
Net Pension Liability $ 21,445,946 9,056,926 $ 813,529 $ Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

B. Other Postemployment Benefits (OPEB)

1. Plan Description and Benefits Provided
The City of Seaside Retiree Healthcare Plan (OPEB Plan), is a single-employer defined benefit healthcare plan administered by the City of Seaside. The plan allows eligible retirees to elect postretirement healthcare (medical, dental and vision) insurance coverage. The City has agreed to contribute on the retiree’s behalf the value of the “Employee-Only” medical insurance premium in accordance with Memorandums of Understanding (MOU) approved by the City Council. The plan does not issue a financial report.

The plan is closed to new City employees, however, current eligibility for the plan is as follows: Nonsafety, Public Safety Management, and Firefighter employees hired on or after July 1, 2010, are not eligible to participate in the plan. Police Officer employees hired on or after January 1, 2011, are not eligible to participate in the plan.

Packet Page 121

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(71)
NOTE 4 OTHER INFORMATION (CONTINUED)
B. Other Postemployment Benefits (OPEB) (Continued)

1. Plan Description and Benefits Provided (Continued)
The plan benefits are provided in the form of:
• An explicit subsidy where the City contributes 100% towards “Employee-Only” medical insurance premium of those active employees and retirees hired on or before the eligibility cutoff date (this varies depending on the existing MOUs).

Both benefit and vesting services are credited from the date of hire. • An explicit right to elect access to postemployment healthcare coverage (medical, dental and vision) for the retiree and their legal dependents. The City is not obligated to contribute towards dependent medical coverage nor dental and vision insurance premiums. Monthly premiums must be paid by the retiree to the City.
• Eligibility: Nonsafety, Public Safety Management, and Firefighter employees hired on or after July 1, 2010, are not eligible to participate in the plan. Police Officer employees hired on or after January 1, 2011, are not eligible to participate in the plan.
• The plan does not include a death or a withdrawal of benefit.

The City operates under an agreement to continue to provide access to healthcare insurance to all employees who retire after at least the age of 50 and who have 10 years of service to the City. Retiring disabled Safety employees need not be 50 years of age; however, the retiree must have 10 years of service. Upon retirement from active employment, a retiree must elect the types of insurance coverage they chose to purchase for themselves and/or their dependents. The City is only required to pay 100% of the “Employee-Only” portion of the medical insurance premium and the retiree pays for the excess cost for any additional insurance premiums. Any increases in “Employee-Only” medical insurance premiums after retirement are borne by the City and the retiree pays for all excess medical, dental and vision premium cost increases. The City’s obligation under the MOU agreements continues until (1) retiree reaches age 65 (age 70 for Firefighters), (2) retiree becomes eligible for Medicare, or (3) retiree chooses to discontinue insurance coverage, whichever comes first.

The cost of the retiree healthcare insurance benefits is recognized as an expenditure and insurance premiums are paid in advance on a monthly basis.

Packet Page 122

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(72)
NOTE 4 OTHER INFORMATION (CONTINUED)
B. Other Postemployment Benefits (OPEB) (Continued)

2. Actuarial Assumptions
The Net OPEB Liability was determined using an actuarial valuation as of June 30, 2020, using the following assumptions:

Valuation Date July 1, 2020
Measurement Date June 30, 2021
Discount Rate 2.20% as of June 30, 2020

2.16% as of June 30, 2021
Inflation 2.50%
Salary Increases None assumed
Investment Rate of Return 2.16%
Healthcare Trend Rate 7.00% as of June 30, 2020

4.00% Thereafter

3. Employees Covered
At June 30, 2021, the following employees were covered by the benefit terms:

Active employees 45
Inactive employees or beneficiaries currently receiving benefits 37 Total 82

4. Contributions
The OPEB Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the County and bargaining units. The City has not established a separate irrevocable trust for its OPEB Plan as of June 30, 2020, and anticipates using the pay-as-you-go method to fund the current cost. Therefore, the City’s annual contribution is equal to its pay-as-you-go costs for the OPEB Plan. For fiscal year ended June 30, 2021, the City’s contributions were $808,090. The City is responsible for all contributions and is charging each responsible department its proportional share of the pay-as-you-go costs.

Packet Page 123

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(73)
NOTE 4 OTHER INFORMATION (CONTINUED)
B. Other Postemployment Benefits (OPEB) (Continued)

5. Changes in the OPEB Liability
The table below shows the changes in the total OPEB liability as of June 30, 2021.

Total
OPEB
Liability
Balances - June 30, 2020 12,515,828 $
Changes in the Fiscal Year:

Service Cost 283,264
Interest on Total OPEB Liability 269,575
Difference Between Expected and
Actual Experience 1,649,307
Change of Assumptions (2,338,124)
Benefit Payments (808,090)
Employer Contributions -
Administrative Expenses -
Net Changes (944,068)
Balances - June 30, 2021 11,571,760 $

6. Sensitivity of the OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current discount rate. 1% Decrease Current 1% Increase
Rate Discount Rate Rate

1.16% 2.16% 3.16%
Total OPEB Liability $ 11,571,760 12,661,009 $ 10,674,930 $

7. Sensitivity of the OPEB Liability to Changes in Healthcare Cost Trend Rates The following presents the OPEB liability of the City, as well as what the City’s OPEB liability would be if it were calculated using healthcare cost trend rates that are 1- percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates.

Current Healthcare
Cost
1% Decrease Trend Rates 1% Increase

6.00% 7.00% 8.00%
decreasing to decreasing to decreasing to

3.00% 4.00% 5.00%
Total OPEB Liability 10,409,448 $ $ 11,571,760 $ 12,975,248 Packet Page 124

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(74)
NOTE 4 OTHER INFORMATION (CONTINUED)
B. Other Postemployment Benefits (OPEB) (Continued)

8. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2021, the City recognized OPEB expense of $2,097,599. OPEB expense represents the change in the OPEB liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss and actuarial assumptions or method. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and
actual experience $ - 1,215,278 $
Changes of assumptions 937,769 1,722,828
Total 2,153,047 $ 1,722,828 $
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Deferred
Year Ended Outflows (Inflows)
June 30 of Resources
2022 131,323 $
2023 131,323
2024 167,573
2025 -
C. Self-Insurance and Contingent Liabilities

1. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Seaside is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage.

The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors.

The Board operates through a nine-member Executive Committee.

Packet Page 125

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(75)
NOTE 4 OTHER INFORMATION (CONTINUED)
C. Self-Insurance and Contingent Liabilities (Continued)

2. Self-Insurance Programs of the Insurance Authority
Each member pays an annual contribution to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period.

After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool-wide basis. This subsequent cost re-allocation among members based on actual claim development can result in adjustments of either refunds or additional deposits required.

The total funding requirement for self-insurance programs is estimated using actuarial models and pre-funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below.

Liability
In the liability program claims are pooled separately between police and nonpolice exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of $750,000 up to the reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $5 million to $10 million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. The $2.5 million annual aggregate deductible is fully covered under a separate policy; as such no portion of it is retained by the Authority. Costs of covered claims from $10 million to $15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deductible.

The $3 million annual aggregate deductible is fully retained by the Authority. (6) Costs of covered claims from $15 million to $20 million are paid under reinsurance agreements. (7) Costs of covered claims from $20 million to $50 million are paid under excess insurance policies.

The overall coverage limit for each member including all layers of coverage is $50 million per occurrence.

Packet Page 126

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(76)
NOTE 4 OTHER INFORMATION (CONTINUED)
C. Self-Insurance and Contingent Liabilities (Continued)

2. Self-Insurance Programs of the Insurance Authority (Continued) Liability (Continued)
Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub limit of $30 million per occurrence. This $30 million subsidence sub limit is composed of (a) $5 million retained within the pool’s SIR, (b) $15 million in reinsurance, subject to the same annual aggregate deductibles previously stated, and (c) $10 million in excess insurance. The excess insurance layer has a $10 million annual aggregate limit.

Workers’ Compensation
In the workers’ compensation program claims are pooled separately between public safety (police and fire) and nonpublic safety exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a reinsurance policy. Protection is provided per statutory liability under California Workers’ Compensation Law.

Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

3. Purchased Insurance
Pollution Legal Liability Insurance
The City of Seaside participates in the pollution legal liability insurance program (formerly called environmental insurance) which is available through the Authority.

The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Seaside. Coverage is on a claims made basis.

There is a $50,000 deductible. The Authority has a limit of $50 million for the threeyear period from July 1, 2017 through July 1, 2021. Each member of the Authority has a $10 million sub limit during the three-year term of the policy.

Packet Page 127

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(77)
NOTE 4 OTHER INFORMATION (CONTINUED)
C. Self-Insurance and Contingent Liabilities (Continued)

3. Purchased Insurance (Continued)
Property Insurance
The City of Seaside participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies.

City of Seaside property is currently insured according to a schedule of covered property submitted by the City of Seaside to the Authority. City of Seaside property currently has all risk property insurance protection in the amount of $25,432,467.

There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Earthquake and Flood Insurance
The City of Seaside purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Seaside property currently has earthquake protection in the amount of $13,278,756. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Crime Insurance
The City of Seaside purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments.

Special Event Tenant User Liability Insurance
The City of Seaside further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Seaside according to a schedule. The City of Seaside then pays for the insurance. The insurance is arranged by the Authority.

4. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage.

There were also no significant reductions in pooled or insured liability coverage in 2020-2021.

Packet Page 128

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(78)
NOTE 4 OTHER INFORMATION (CONTINUED)
C. Self-Insurance and Contingent Liabilities (Continued)

5. Changes in Claims Liability
The City provides workers’ compensation through the California Joint Powers Insurance Authority. The City is liable for all workers’ compensation claims outstanding as of June 30, 2004. The City uses a third-party insurance services group to analyze the claims. Reserves are reviewed in accordance with State Guidelines, specifically California Code of Regulations 15300. Actuarial studies are not completed to determine the reserves. Changes in the balances of claims liabilities since July 1, 2018, resulted from the following:

Net Unpaid Claims - July 1, 2019 1,135,792 $
Claims Incurred and Change in Estimates (67,560)
Claim Payments (67,916)
Unpaid Claims - June 30, 2020 1,000,316 $
Net Unpaid Claims - July 1, 2020 1,000,316 $
Claims Incurred and Change in Estimates 200,703
Claim Payments (202,180)
Unpaid Claims - June 30, 2021 998,839 $
D. Commitments and Contingencies
The City is involved in various litigations. In the opinion of management and legal counsel, the disposition on all litigation pending will not have a material effect on the City’s financial statements.

At June 30, 2021, the City has commitments of approximately $3.9 million for construction contracts, awarded but not completed.

The City has received State and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material.

E. Related Party – Employee Home Loan Receivable
On March 20, 2003, the City Council adopted the Public Safety Personnel Home Purchase Incentive Loan Program (Program) to provide low interest loans to all City public safety personnel to assist them to obtain housing in the City to help attract and retain quality public safety employees. In July 2007, the City expanded the Program to include all City full-time employees. To be eligible, the employee must not have owned a home in the County, and the home purchased under the Program must be within the City’s limit. Participants must sign a loan agreement and agree to pay interest on the loan. The interest rate under the Program will be determined by the prevailing LAIF rates. The loan and interest will be forgiven after a 10-year period, by which the participants have been employed full-time by the City. The City’s Finance Department administers the program. The city is no longer awarding any new loans under this program.

Packet Page 129

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(79)
NOTE 4 OTHER INFORMATION (CONTINUED)
E. Related Party – Employee Home Loan Receivable (Continued) The maximum amount that a participant can borrow is $100,000 or 20% of the property’s fair market value, whichever is lower. The total loan receivable under the program as of June 30, 2021 is $206,997.

F. Fund Balances
Fund Balances for all major and nonmajor governmental fund as of June 30, 2021 were distributed as follows:

Federal
Economic FORA Blight Transportation Other
General Recovery Removal - Bond Capital Measure X Governmental Fund Grants Fund Projects Bond Fund Funds Total
Nonspendable
Notes/Loans Receivable - Housing 206,997 $ - $ - $ - $ - $ - $ 206,997 $ Prepaid Assets 1,000 - - - - - 1,000
Advances 2,447,431 - - - - - 2,447,431
Total Nonspendable 2,655,428 - - - - - 2,655,428
Restricted
Debt Service - - - - - 15,523 15,523
General Government - Leases
and Employee Programs 482,428 - - - - - 482,428
Public Safety - Grants/State Law - - - - - 642,497 642,497 Recreation - Senior Program - - - - - 280,450 280,450
Public Works/Capital Projects - - - 177,288 3,369,445 7,183,894 10,730,627 Community Services - - - - - 667,896 667,896
Community Development - Various - - - - - 5,707,260 5,707,260 Community Development - Land
Held for Resale - - - - - 658,068 658,068
Community Development - Housing
Loans - - - - - 1,454,683 1,454,683
Community Development - Housing - - - - - - -
Total Restricted 482,428 - - 177,288 3,369,445 16,610,271 20,639,432 Committed
General Fund Reserves 11,459,000 - - - - - 11,459,000
Recreation - Facilities/Pool - - - - - - -
Public Works - Army Contract - - 6,486,909 - - 407,029 6,893,938 Community Development - Housing - - - - - 1,168,502 1,168,502 Total Committed 11,459,000 - 6,486,909 - - 1,575,531 19,521,440 Assigned
General Government - Employee
Programs 504,504 - - - - - 504,504
Total Assigned 504,504 - - - - - 504,504
Unassigned - Fund Balance
(Deficit)
General Government 15,181,618 - - - - (1,115) 15,180,503 Public Safety - - - - - (170,104) (170,104)
Public Works - - - - - - -
Community Development - - - - - (32,623) (32,623)
Capital Projects - - - - - (82,184) (82,184)
Total Unassigned - Fund
Balance (Deficit) 15,181,618 - - - - (286,026) 14,895,592 Total Fund Balances 30,282,978 $ - $ 6,486,909 $ 177,288 $ 3,369,445 $ 17,899,776 $ 58,216,396 $ Packet Page 130

CITY OF SEASIDE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(80)
NOTE 4 OTHER INFORMATION (CONTINUED)
G. Restatements of Net Position
Adjustments resulting from errors or changes to comply with provisions of the accounting standards are treated as adjustments to prior periods. Accordingly, the City reports these changes as restatements of beginning net position.

The following restatements were made during the current year:

Governmentwide Statements
Successor
Governmental Agency Custodial
Activities Fund Funds
Net Position - July 1, 2020, as Previously Reported $ 17,454,687 44,004,615 $ - $ Restatement of Beginning Balance
Change in Accounting Principle
To restate beginning net position in accordance with
GASB Statement No. 84, Fiduciary Activities . - - (4,792,321) Correction of an Error
To record the value of land donated to the City by Fort Ord Reuse Authority (FORA) - 116,883,188 -
Correction of an error related to wire payment made in
the prior year. (1,400,000) - -
Net Position - July 1, 2020, as Restated 160,887,803 $ 16,054,687 $ (4,792,321) $ Fiduciary Fund Statements
As of July 1, 2020, the City implemented GASB 84. Implementation of this standard resulted in reclassification of certain activities between governmental and fiduciary funds and also required a restatement of beginning net position.

The beginning net position balance of the City’s Governmental Activites has been restated to record the value of land donated to the City by Fort Ord Reuse Authority (FORA). This adjustment increased the prior year change in net position by $116,883,188 and had no impact on the current year change in net position.

The beginning fund balance of Successor Agency private purpose trust fund was reduced by $1,400,000 to reflect a transfer of land sale proceeds not properly adjusted in the Sucessor Agency fund for the outflow of cash. This adjustment decreased the prior year change in net position by $1,400,000 and had no impact on the current year change in net position.

Packet Page 131

REQUIRED SUPPLEMENTARY INFORMATION
Packet Page 132

CITY OF SEASIDE

GENERAL FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
See accompanying Note to Required Supplementary Information. (81)
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Property Taxes 7,702,740 $ 7,702,740 $ 9,407,981 $ 1,705,241 $ Taxes Other than Property 19,977,805 19,977,805 27,436,330 7,458,525 Licenses and Permits 522,350 522,350 813,155 290,805
Fines and Penalties 93,900 93,900 109,907 16,007
Use of Money and Property 182,972 182,972 215,964 32,992 Intergovernmental Revenues 355,173 355,173 2,494,582 2,139,409 Charges for Services 598,350 598,350 380,559 (217,791)
Other Revenues 1,238,930 1,238,930 909,860 (329,070)
Total Revenues 30,672,220 30,672,220 41,768,338 11,096,118

EXPENDITURES
Current:

General Government:

City Council 303,596 303,596 272,199 31,397
City Manager 861,207 876,207 789,912 86,295
City Attorney 535,403 535,403 454,201 81,202
Finance Division 1,104,277 1,104,277 1,011,832 92,445
Personnel 586,978 586,828 547,626 39,202
Boards and Commissions 189,500 20,469 11,743 8,726
Janitorial Services 341,887 341,887 242,834 99,053
Central Service Charges (3,295,139) (3,295,139) (3,091,652) (203,487) Total General Government 627,709 473,528 238,695 234,833 Public Works:

Governmental Building Division 1,187,515 1,601,516 2,465,423 (863,907) Parks Division 1,152,323 1,260,156 1,102,247 157,909
Engineering Division 967,854 984,274 807,913 176,361
Central Service Charges (1,041,100) (1,041,100) (922,555) (118,545) Total Public Works 2,266,592 2,804,846 3,453,028 (648,182) Public Safety:

Police 12,410,132 12,419,132 11,980,905 438,227
Fire 6,994,917 7,194,918 7,130,089 64,829
CalVIP Grant 315,120 315,120 83,985 231,135
Central Services Charges 2,274,142 2,274,142 1,912,642 361,500 Total Public Safety 21,994,311 22,203,312 21,107,621 1,095,691 Community Development:

Resource Management 280,254 272,754 237,038 35,716
Building Division 597,330 597,330 579,566 17,764
Planning Division 1,411,247 1,786,894 1,400,817 386,077 Central Services Charges 210,933 210,933 196,070 14,863 Total Community Development 2,499,764 2,867,911 2,413,491 454,420 Budgeted Amounts
Packet Page 133

CITY OF SEASIDE

GENERAL FUND

BUDGETARY COMPARISON SCHEDULE (CONTINUED)
YEAR ENDED JUNE 30, 2021
See accompanying Note to Required Supplementary Information. (82)
Actual Variance with
Original Final Amounts Final Budget

EXPENDITURES (CONTINUED)
Recreation:

Community Center 160,530 $ 639,720 $ 500,615 $ 139,105 $ Youth and Education Center 918,994 918,994 584,530 334,464 General Recreation 488,542 488,542 421,086 67,456
Swim Center 312,465 312,465 122,826 189,639
Senior/Human Services 50,169 50,169 39,380 10,789
Events 15,000 15,000 191 14,809
Central Services Charges 618,029 618,029 592,395 25,634 Total Recreation 2,563,729 3,042,919 2,261,023 781,896
Debt Service:

Principal 191,556 191,556 129,060 62,496
Interest and Fiscal Charges 51,581 51,581 32,623 18,958 Total Debt Service 243,137 243,137 161,683 81,454
Total Expenditures 30,195,242 31,635,653 29,635,541 2,000,112

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (963,433) 476,978 12,132,797 13,096,230

OTHER FINANCING SOURCES (USES)
Proceeds from Sale of Land
Held for Resale - - 700,000 700,000
Transfers In - - 118,981 118,981
Transfers Out (3,128,629) (3,483,629) (2,483,969) 999,660 Total Other Financing Sources
(Uses) (3,128,629) (3,483,629) (1,664,988) 1,818,641
NET CHANGE IN TOTAL FUND BALANCE $ (4,447,062) (2,651,651) $ 10,467,809 14,914,871 $ Fund Balance - Beginning of Year 19,815,169
FUND BALANCE - END OF YEAR $ 30,282,978
Budgeted Amounts
Packet Page 134

CITY OF SEASIDE

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
See accompanying Note to Required Supplementary Information. (83)
SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY AND RELATED RATIOS For the measurement period ended June 30,
Last 10 Fiscal Years*
2021 2020 2019 2018
Total OPEB Liability
Service Cost 283,264 $ 297,013 $ 269,500 $ 432,449 $
Interest on total OPEB liability 394,507 269,575 404,213 381,141 Actual and expected experience difference 1,649,307 53,393 - - Changes in assumptions (2,338,124) 1,133,806 722,824 (224,252) Changes in benefit terms
Benefit payments (808,090) (621,606) (626,143) (624,396) Net change in total OPEB liability 1,257,113 (944,068) 770,394 (35,058) Total OPEB liability - beginning 12,515,828 11,258,715 10,488,321 10,523,379 Total OPEB liability - ending 11,571,760 $ 12,515,828 $ 11,258,715 $ 10,488,321 $ Covered-employee payroll 4,929,564 $ 6,733,292 $ 6,907,005 $ 6,744,934 $ Total OPEB liability as a percentage of
covered-employee payroll 234.74% 185.88% 163.00% 155.50% Notes to Schedule:
*Historical information is required only for the measurement periods for which GASB 75 is applicable.

Future years' information will be displayed up to 10 years as information becomes available.

Change in Assumptions - The discount rate to measure the total OPEB Liability was 3.87% as of June 30, 2018, 3.50% as of June 30, 2019, 2.20% as of June 30, 2020 and was reduced to 2.16% as of June 30, 2021.

Packet Page 135

CITY OF SEASIDE

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
See accompanying Note to Required Supplementary Information. (84)
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Last 10 Fiscal Years*
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 City's Proportion of the Net Pension Liability 0.3664 % 0.3555 % 0.3232 % 0.3340 % 0.3250 % 0.3084 % 0.3251 % City's Proportionate Share of the Net Pension
Liability 15,453,175 $ 14,233,825 $ 12,179,764 $ 13,166,118 $ 11,291,439 $ 8,459,845 $ 8,035,936 $ City's Covered Payroll 5,985,549 $ 5,926,286 $ 5,315,840 $ 5,211,608 $ 5,109,420 $ 4,960,602 $ 4,816,118 $ City's Proportionate Share of the Net Pension
Liability as a Percentage of its Covered Payroll 258.17% 240.18% 229.12% 252.63% 220.99% 170.54% 166.86% Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 77.71 % 77.73 % 77.69 % 75.39 % 75.87 % 79.89 % 81.15 % Last 10 Fiscal Years*
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 City's Proportion of the Net Pension Liability 0.5191 % 0.5072 % 0.4994 % 0.4878 % 0.4878 % 0.4810 % 0.4517 % City's Proportionate Share of the Net Pension
Liability 34,582,790 $ 31,662,282 $ 29,305,095 $ 28,925,869 $ 25,266,061 $ 19,819,003 $ 16,942,902 $ City's Covered Payroll 6,800,625 $ 6,733,292 $ 7,062,165 $ 6,923,691 $ 6,787,933 $ 6,590,226 $ 6,488,898 $ City's Proportionate Share of the Net Pension
Liability as a Percentage of its Covered Payroll 508.52% 470.23% 414.96% 417.78% 372.22% 300.73% 261.11% Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 73.12 % 73.37 % 73.39 % 71.74 % 72.69 % 77.27 % 78.83 % Notes to Schedules:
* Fiscal year 2015 was the first year of implementation. Additional years will be presented as they become available.

Miscellaneous Plans
Reporting Year
(Measurement Year)
Safety Plans
Reporting Year
(Measurement Year)
Change in Assumptions - The discount rate to measure the net pension liability was 7.65% as of June 30, 2014 ,2015 and 2016, and was reduced to 7.15% as of June 30, 2017.

The inflation rate to measure the net pension liability was 2.75% as of June 30, 2014, 2015, 2016, and 2017 and was reduced to 2.50% as of June 30, 2018.

Packet Page 136

CITY OF SEASIDE

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
See accompanying Note to Required Supplementary Information. (85)
SCHEDULE OF PENSION CONTRIBUTIONS – COST SHARING PLANS
Last 10 Fiscal Years*
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Actuarial Determined Contributions 1,559,816 $ 1,463,950 $ 1,235,423 $ 900,009 $ 853,571 $ 580,047 $ 507,329 $ Contributions Related to the Actuarially
Determined Contribution 1,559,816 1,463,950 1,235,423 900,009 853,571 580,047 507,329 Contribution Deficiency (Excess) - $ - $ - $ - $ - $ - $ - $ City's Covered Payroll 7,310,950 $ 5,985,549 $ 5,926,286 $ 5,315,840 $ 5,211,608 $ 5,109,608 $ 4,960,602 $ Contributions as a Percentage of
Covered Payroll 21.34% 24.46% 20.85% 16.93% 16.38% 11.35% 10.23% 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Actuarial Determined Contributions 3,286,948 $ 3,134,288 $ 2,675,215 $ 2,261,369 $ 2,154,782 $ 1,675,356 $ 1,606,573 $ Contributions Related to the Actuarially
Determined Contribution 3,286,948 3,134,288 2,675,215 2,261,369 2,154,782 1,675,356 1,606,573 Contribution Deficiency (Excess) - $ - $ - $ - $ - $ - $ - $ City's Covered Payroll 7,656,958 $ 6,800,625 $ 7,132,786 $ 7,062,165 $ 6,923,691 $ 6,787,933 $ 6,590,226 $ Contributions as a Percentage of
Covered Payroll 42.93% 46.09% 37.51% 32.02% 31.12% 24.68% 24.38% * Fiscal year 2015 was the first year of implementation. Additional years will be presented as they become available.

Miscellaneous Plans
For the Fiscal Year ended
Safety Plans
For the Fiscal Year ended
Packet Page 137

CITY OF SEASIDE

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
See accompanying Note to Required Supplementary Information. (86)
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – PARS For the measurement period ended June 30,
Last 10 Fiscal Years*
6/30/2021 6/30/2020 6/30/2019
Total Pension Liability
Service Cost 32,113 $ 51,907 $ 50,518 $
Interest on Total Pension Liability 171,030 165,908 106,435 Effect of economic/demographic gains or losses 301,321 - - Change of Assumptions - - 75,437
Difference Between Expected and Actual Experience - - 1,011,283 Benefit Payments, including Refunds of Employee
Contributions (260,877) (303,665) (241,995)
Other Adjustments - - -
Net Change in Total Pension Liability 195,677 1,001,678 (37,940) Total Pension Liability - Beginning 2,707,708 2,669,768 1,706,030 Total Pension Liability - Ending $ 2,669,768 2,865,445 $ 2,707,708 $ Plan Fiduciary Net Position
Contributions - Employer 67,961 $ 100,846 $ 116,033 $
Net Investment Income 353,468 53,900 112,310
Administrative Expenses (7,495) (7,502) (7,604)
Benefit Payments, including Refunds of Employee
Contributions (260,877) (303,665) (241,995)
Other Adjustments - - -
Net Change in Plan Fiduciary Net Position 110,269 (113,633) (21,256) Plan Fiduciary Net Position 1,731,914 1,845,547 1,866,803 Plan Fiduciary Net Position 1,842,183 $ 1,731,914 $ 1,845,547 $ Net Pension Liability - Ending $ 937,854 1,023,262 $ 862,161 $ Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 64.29% 64.87% 68.16%
Covered Payroll 1,140,499 $ 1,811,411 $ 1,762,930 $
Net Pension Liability as a Percentage of Covered Payroll 89.72% 51.77% 48.91% Notes to Schedule:
* Fiscal year 2015 (measurement year 2015) was the first year of implementation. Additional years will be presented as they become available. Information required to complete the table of fiscal year 2015 (measurement year 2014) was not available.

Change in Assumptions - The discount rate to measure the net pension liability was 7.00% as of June 30, 2016, 2017 and 2018 and was reduced to 6.50% as of June 30, 2019.

The inflation rate to measure the net pension liability was 2.75% as of June 30, 2016, 2017 and 2018 and was reduced to 2.50% as of June 30, 2019.

Packet Page 138

CITY OF SEASIDE

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
See accompanying Note to Required Supplementary Information. (87)
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – PARS (CONTINUED)
6/30/2018 6/30/2017 6/30/2016
Total Pension Liability
Service Cost 70,090 $ 68,049 $ 83,967 $
Interest on Total Pension Liability 143,950 119,132 132,528 Effect of economic/demographic gains or losses - - -
Change of Assumptions - - -
Difference Between Expected and Actual Experience - - (358,987) Benefit Payments, including Refunds of Employee
Contributions (193,614) (226,148) (139,195)
Other Adjustments - 128,580 -
Net Change in Total Pension Liability (36,926) 77,300 (212,022) Total Pension Liability - Beginning 1,954,978 1,742,956 1,877,678 Total Pension Liability - Ending $ 1,742,956 1,706,030 $ 1,954,978 $ Plan Fiduciary Net Position
Contributions - Employer 249,000 $ 233,278 $ 343,613 $
Net Investment Income 105,819 157,637 30,236
Administrative Expenses (7,789) (7,217) (15,949)
Benefit Payments, including Refunds of Employee
Contributions (193,614) (226,148) (139,195)
Other Adjustments - 179,583 -
Net Change in Plan Fiduciary Net Position 120,882 369,667 218,705 Plan Fiduciary Net Position 1,745,921 1,376,254 1,157,549 Plan Fiduciary Net Position 1,866,803 $ 1,745,921 $ 1,376,254 $ Net Pension Liability - Ending $ (160,773) $ 578,724 (2,965) $ Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 109.42% 100.17% 70.40%
Covered Payroll 1,963,515 $ 1,906,325 $ 1,850,801 $
Net Pension Liability as a Percentage of Covered Payroll -8.19% -0.16% 31.27% Packet Page 139

CITY OF SEASIDE

REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
See accompanying Note to Required Supplementary Information. (88)
SCHEDULE OF CONTRIBUTIONS – PARS
For the fiscal year ended June 30
Last 10 Fiscal Years*
6/30/2021 6/30/2020 6/30/2019
Actuarial Determined Contributions 255,960 $ 406,546 $ 122,161 $ Contributions Related to the Actuarially
Determined Contributions 67,961 100,846 116,033
Contributions Deficiency (Excess) $ 305,700 187,999 $ 6,128 $ City's Covered Payroll 1,140,499 $ 1,811,411 $ 1,762,930 $ Contributions as a Percentage of Covered Payroll 5.96% 5.57% 6.58% * Fiscal year 2015 (measurement year 2015) was the first year of implementation.

Additional years will be presented as they become available. 6/30/2018 6/30/2017 6/30/2016 6/30/2015
Actuarial Determined Contributions 135,751 $ 214,138 $ 240,847 $ 280,141 $ Contributions Related to the Actuarially
Determined Contributions 249,000 233,278 290,648 343,613 Contributions Deficiency (Excess) $ (113,249) $ (19,140) $ (49,801) $ (63,472) City's Covered Payroll 1,963,515 $ 1,906,325 $ 1,850,801 $ 2,081,857 $ Contributions as a Percentage of Covered Payroll 12.68% 12.24% 15.70% 16.51% Packet Page 140

CITY OF SEASIDE

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
(89)
NOTE 1 BUDGETARY INFORMATION
Annual budgets are adopted for all governmental fund types on the modified accrual basis of accounting consistent with accounting principles generally accepted in the United States of America. The City of Seaside’s (City) budget ordinance requires that in May of each year, the City Manager must submit a preliminary budget that includes projected expenditures and the means of financing them to the City Council for the next fiscal year. As modified during public study sessions, the preliminary budget becomes the proposed budget. Following public hearings on the proposed budget, the final annual budget is adopted by the City Council in June. After adoption of the final budget, transfers of appropriations of less than $10,000 within a general fund department, or within other funds, can be made by the City Manager. Transfers of appropriations of more than $10,000, budget modifications between funds, increases or decreases to a fund’s overall budget, transfers between general fund departments, or transfers that affect capital projects, must be approved by the City Council.

Numerous properly authorized amendments are made during the fiscal year.

The legal level of budgetary control is maintained at the fund and department level.

The City did not present budgetary schedules for the following funds: Housing Settlement Fund, FORA Blight Removal – Bond Fund, and FORA Non-Bond Fund since these funds did not report a budget this year.

Budgetary control is enhanced by integrating the budget into the general ledger accounts.

Encumbrance accounting (e.g., purchase orders) is employed by the City.

Expenditures exceeded budgetary appropriations for the year ended June 30, 2021 as follows:

Final Actual Exceeded
Fund/Department Budget Amount Budget
General Fund:

Public Works - Government Building Division 1,601,516 2,465,423 863,907 Laguna Grande Project Fund:

Public Works 62,931 77,465 14,534
Gas Tax Fund:

Principal payments on long-term debt 27,800 33,915 6,115 SAFER FEMA Grant Fund:

Public Safety 730 - 730
Transportation Safety and Investment Plan Fund:

Public Works 5,100 5,334 234
Measure X Bond Fund:

Interest and Fiscal Charges 411,000 412,750 1,750
Pension Obligation Bonds Fund
General Government - 2,997 2,997
Cutino Park Bond Fund
General Government - 152 152
Packet Page 141

SUPPLEMENTARY INFORMATION
Packet Page 142
Packet Page 143

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

TRANSPORTATION CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
(90)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property - $ - $ 178 $ 178 $
Intergovernmental Revenue - - 200,000 200,000
Total Revenues - - 200,178 200,178

EXPENDITURES
Capital Outlay 12,782,900 12,999,826 6,661,727 6,338,099

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (12,999,826) (12,782,900) (6,461,549) 6,538,277

OTHER FINANCING SOURCES (USES)
Transfers In - - 8,155,513 8,155,513
Total Other Financing
Sources (Uses) - - 8,155,513 8,155,513
NET CHANGE IN FUND BALANCE $ (12,999,826) (12,782,900) $ 1,693,964 14,693,790 $ Fund Balance - Beginning of Year (1,516,676)
FUND BALANCE - END OF YEAR $ 177,288
Packet Page 144

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

MEASURE X BOND FUND
YEAR ENDED JUNE 30, 2021
(91)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property - $ - $ 505 $ 505 $

EXPENDITURES
Current:

General Government - - 150 (150)
Debt Service:

Principal 230,000 230,000 230,000 -
Interest and Fiscal Charges 411,000 411,000 412,750 (1,750) Issuance Costs - - - -
Total Expenditures 641,000 641,000 642,900 (1,900)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (641,000) (641,000) (642,395) (1,395)

OTHER FINANCING SOURCES (USES)
Transfers In 641,000 641,000 642,750 1,750
Transfers Out (10,500,000) (10,500,000) (7,547,451) 2,952,549 Total Other Financing
Sources (Uses) (9,859,000) (9,859,000) (6,904,701) 2,954,299 NET CHANGE IN FUND BALANCE $ (10,500,000) (10,500,000) $ (7,547,096) 2,952,904 $ Fund Balance - Beginning of Year 10,916,541
FUND BALANCE - END OF YEAR $ 3,369,445
Packet Page 145

NONMAJOR GOVERNMENTAL FUNDS
Packet Page 146

CITY OF SEASIDE

FUND DESCRIPTIONS
(92)

SPECIAL REVENUE FUNDS

PUBLIC SAFETY FUND
201 OTS-AV18 – This fund is used to account for a grant from the Office of Traffic Safety coordinated through the City of Salinas.
203 BJA Grant – This fund is established to account for Federal grant funds received from U.S.

Department of Justice (DOJ) Office of Justice Programs (OJP) Bureau of Justice Assistance (BJA) for the purpose of purchasing safety equipment.
209 PC Training – This fund is used to account for the revenues and expenditures of public safety courses taught by City of Seaside police personnel at Monterey Peninsula College. 218 MPC Training – This fund is used to account for the revenues and expenditures of public safety courses taught by City of Seaside Fire personnel at Monterey Peninsula College. 223 JAG-Justice Assistance Grant – This fund is used to account for a Federal Grant from the Department of Justice.
230 Safe Routes to School – This fund is used to account for a State grant related to transportation paths to school.
240 ABC Grant – This fund was established to account for State funds received from the Department of Alcoholic Beverage Control for the operation of programs designed to enforce underage drinking laws and policies.
241 Asset Forfeiture Fund – This fund is used to account for assets seized during arrest. The assets are held in this fund until adjudicated through the courts and then distributed as directed. Eventual proceeds received by Seaside are restricted for certain Police uses. 243 PRVNT Fund – This fund is used to account for the activities of the Peninsula Regional Violence and Narcotic Task Force.

Packet Page 147

CITY OF SEASIDE

FUND DESCRIPTIONS (CONTINUED)
(93)

SPECIAL REVENUE FUNDS (CONTINUED)

COMMUNITY SERVICES FUND
244 Found Property – This fund is used to hold found property until it can be returned to its owner or is escheated to the State.
245 Dog Park Project – This fund is used to account for donations for the City dog park. 251 Senior Programs – This fund supports new and existing senior programs. 252 Oldemeyer Maintenance – This fund accounts for a portion of the center’s room rental fee which is set aside for the maintenance of the center.
253 Youth Center Maintenance – This fund accounts for a portion of the center’s room rental fee which is set aside for the maintenance of the center.
255 Soper Field Community Center – This fund accounts for a portion of the center’s room rental fee which is set aside for the maintenance of the center. 256 Swimming Pool Maintenance – This fund accounts for a portion of the activity fee which is set aside for the maintenance of the Pool.
257 Parks Maintenance – This fund accounts for a portion of the rental fee which is set aside for the maintenance of the Parks.

SUPPLEMENTAL LAW ENFORCEMENT
221 CA Supplemental Law Enforce (SLESF) – The California Supplemental Law Enforcement fund is used to track State revenues distributed through the County of Monterey. The funds are restricted to specific uses in the Police Department.

PRESIDIO O&M ACTIVITIES (POMA) FUND
113 POMA & DMDC Fund – This fund accounts for the Operations and Maintenance for the Presidio of Monterey Joint Powers Authority. The revenue sources are primarily from charges for services.

PROPOSITION 172 FUND
220 Proposition 172 Sales Tax – This fund is used to account for the sales tax designated to be spent by cities only for public safety services.

LAGUNA GRANDE PROJECT
103 Laguna Grande Parking Authority – This fund captures the costs for maintenance of the Laguna Grande Parking lot. Expenses are reimbursed by the five main businesses located on the lot.

Packet Page 148

CITY OF SEASIDE

FUND DESCRIPTIONS (CONTINUED)
(94)

SPECIAL REVENUE FUNDS (CONTINUED)

COMMUNITY DEVELOPMENT BLOCK GRANT
200 CDBG – This fund is used to account for any grants from the Federal Community Development Act. It also accounts for outstanding CDBG funded housing loans and rental payments on CDBG properties.

GAS TAX FUND
210 (212, 214, 216, 218) State Gas Tax Funds – The City’s Gas Tax allocations are recorded in these funds. The use of these funds is restricted to the maintenance, repair, and design of streets by State and Federal legislation. Beginning in FY 2014-15, these funds were combined into fund 210.
224 Surface Transportation – This fund is used to account for State funds restricted for use to specific street purposes.

FORA NON-BOND FUND
332 FORA Habitat – This fund is used to account for funds for the preservation and maintenance of natural habitat within designated areas of the former Ft. Ord. 335 ESCA (FORA) – This fund is used to account for activities related to the Environmental Services Cooperative Agreement with the US Army for activity related to property within the former Fr. Ord.

HOUSING SETTLEMENT FUND
997 Housing Settlement – This fund is used to account for funds set aside for affordable housing and the RDA low and moderate income housing fund.

DISABILITY ACCESS FEE FUND
262 Disabled Access – This fund accounts for a $1 collected from each business license, as required by SB1186. A portion of the amount collected is retained for restricted use by the Building Division and a portion is remitted to the State on a quarterly basis.

PUBLIC, EDUCATION AND GOVERNMENT (PEG) ACCESS FUND
291 PEG Access – This fund accounts for Public Education charges collected on resident’s cable bills. The expenditures are restricted to use for televising public meetings.

RECREATION ENDOWMENT FUND
602 Gardner Trust Fund –This fund is used to account for the funds received from the Gardner Trust which is restricted to use for Senior Programs.

Packet Page 149

CITY OF SEASIDE

FUND DESCRIPTIONS (CONTINUED)
(95)

SPECIAL REVENUE FUNDS (CONTINUED)

SAFER FEMA GRANT FUNDS
106 OES/FEMA – This fund is used to account for any grants received by the City for emergency preparedness.
231 SAFER Grant – This fund is used to account for the revenue and expenditures related to this grant from FEMA for additional staffing of firefighters.

TRANSPORTATION SAFETY AND INVEST PLAN
211 Transportation Safety and Invest Plan (Measure X) – This fund accounts for revenues and expenditures related to the Measure X sales tax measure.

HOUSING SUCCESSOR SPECIAL REVENUE FUND
297 Housing Successor Special Revenue Fund – is used to retain the housing assets and functions previously performed by the dissolved Redevelopment Agency of the City. The revenue sources are primarily from rental activities.

STORMWATER FUND
271 Stormwater Fund – This fund accounts for revenues and expenditures related to the operation of the City’s storm drain and stormwater management system.

GENERAL CAPITAL PROJECT FUNDS
304 Patello Swim Center - CIP – This fund accounts for capital improvement projects at Patello Swim Center. There are currently no active projects.
308 Seaside Library - CIP – This fund accounts for capital improvement projects at the Seaside Library. There are currently no active projects.
325 MPWMD Local Water Project – This fund accounts for funds related to a grant from Monterey Peninsula Water Management District for the Laguna Grande well and water storage project. 341 Culvert Replacement - INO – This fund is used to account for funds related to the replacement of an existing corrugated metal pipe that provides drainage of runoff to Laguna Grande Park.
342 Parks – Playground Improvement – This fund accounts for funds related to capital improvement projects at City parks and playgrounds.
345 WBUV Infrastructure Improvement – This fund accounts for funds related to the West Broadway Urban Village capital project.
347 Solar Panels – This fund is used to account for funds related to the solar panel installation capital project at the City Hall parking lot.

Packet Page 150

CITY OF SEASIDE

FUND DESCRIPTIONS (CONTINUED)
(96)

SPECIAL REVENUE FUNDS (CONTINUED)

GENERAL CAPITAL PROJECT FUNDS (CONTINUED)
348 Cutino Park Improvements – This fund is used to account for funds related to capital improvements at Cutino Park.

DEBT SERVICE FUNDS
355 Pension Obligation – This fund accounts for the debt service payments for the Pension Obligation Bond. The funding source for these payments is an Internal Service Transfer from other funds.
356 Cutino Park Bond Fund – This fund accounts for the escrow balance of bond proceeds for the Cutino Park project, as well as the debt service payments for the bond. The funding source for these debt service payments is a transfer from the General Fund.

Packet Page 151

CITY OF SEASIDE

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(97)
Public Community Supplemental
Safety Services Law
Fund Fund Enforcement
ASSETS
Cash and Investments 382,406 $ 687,374 $ 368,454 $
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable 2,971 - 8,362
Deposits with Others - 112 -
Due from Other Governments 2,839 - 8,333
Notes/Loans Receivable - - -
Land Held for Resale - - -
Total Assets 388,216 $ 687,486 $ 385,149 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts Payable 9,744 $ 1,526 $ 23,433 $
Accrued Salaries and Benefits 35 7,659 -
Deposits from Others 97,500 10,405 -
Other Liabilities 156 - -
Due to Other Funds - - -
Total Liabilities 107,435 19,590 23,433
Deferred Inflows of Resources:

Unavailable Revenue - Intergovernmental - - -
Fund Balance:

Restricted 280,781 667,896 361,716
Committed - - -
Unassigned - - -
Total Fund Balances 280,781 667,896 361,716
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 388,216 $ 687,486 $ 385,149 $ Special Revenue
Packet Page 152

CITY OF SEASIDE

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(98)
Presidio O&M Laguna
Activities Proposition Grande
(POMA) Fund 172 Fund Project
ASSETS
Cash and Investments 295,374 $ - $ 282 $
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable - 26,035 -
Deposits with Others - - -
Due from Other Governments 549,693 - -
Notes/Loans Receivable - - -
Land Held for Resale - - -
Total Assets 845,067 $ 26,035 $ 282 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts Payable 27,354 $ - $ 4,247 $
Accrued Salaries and Benefits 18,975 - 1,328
Deposits from Others - - -
Other Liabilities - - -
Due to Other Funds - 50,601 -
Total Liabilities 46,329 50,601 5,575
Deferred Inflows of Resources:

Unavailable Revenue - Intergovernmental 391,709 - -
Fund Balance:

Restricted - - -
Committed 407,029 - -
Unassigned - (24,566) (5,293)
Total Fund Balances 407,029 (24,566) (5,293)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 845,067 $ 26,035 $ 282 $
Special Revenue
Packet Page 153

CITY OF SEASIDE

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(99)
Community FORA
Development Gas Tax Non-Bond
Block Grant Fund Fund
ASSETS
Cash and Investments 192,506 $ $ 1,454,022 $ 3,408,204
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable 272,974 68,000 122,387
Deposits with Others - - -
Due from Other Governments - - -
Notes/Loans Receivable 120,968 - -
Land Held for Resale - - -
Total Assets $ 586,448 $ 1,522,022 $ 3,530,591

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts Payable $ 285,811 $ 304,506 $ 141,205
Accrued Salaries and Benefits 2,274 14,035 9,987
Deposits from Others 500 346 -
Other Liabilities - - -
Due to Other Funds - - -
Total Liabilities 288,585 318,887 151,192
Deferred Inflows of Resources:

Unavailable Revenue - Intergovernmental - 9,138 909
Fund Balance:

Restricted 297,863 1,193,997 3,378,490
Committed - - -
Unassigned - - -
Total Fund Balances 297,863 1,193,997 3,378,490
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 586,448 $ 1,522,022 $ 3,530,591 Special Revenue
Packet Page 154

CITY OF SEASIDE

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(100)
Housing Disability
Settlement Access PEG
Fund Fee Access Fund
ASSETS
Cash and Investments $ 1,168,502 $ 9,189 $ 19,005
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable - - 1,431
Deposits with Others - - -
Due from Other Governments - - -
Notes/Loans Receivable - - -
Land Held for Resale - - -
Total Assets $ 1,168,502 $ 9,189 $ 20,436

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts Payable $ - $ 5,774 $ 21,551
Accrued Salaries and Benefits - - -
Deposits from Others - - -
Other Liabilities - - -
Due to Other Funds - - -
Total Liabilities - 5,774 21,551
Deferred Inflows of Resources:

Unavailable Revenue - Intergovernmental - - -
Fund Balance:

Restricted - 3,415 -
Committed 1,168,502 - -
Unassigned - - (1,115)
Total Fund Balances 1,168,502 3,415 (1,115)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 1,168,502 $ 9,189 $ 20,436 Special Revenue
Packet Page 155

CITY OF SEASIDE

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(101)
SAFER Transportation
Recreation FEMA Safety and
Endowment Grant Fund Invest Plan
ASSETS
Cash and Investments 280,450 $ $ 155 $ 1,555,491
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable - 919 315,321
Deposits with Others - - -
Due from Other Governments - - -
Notes/Loans Receivable - - -
Land Held for Resale - - -
Total Assets $ 280,450 $ 1,074 $ 1,870,812

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts Payable $ - $ 887 $ -
Accrued Salaries and Benefits - - -
Deposits from Others - - -
Other Liabilities - - -
Due to Other Funds - 170,291 -
Total Liabilities - 171,178 -
Deferred Inflows of Resources:

Unavailable Revenue - Intergovernmental - - -
Fund Balance:

Restricted 280,450 - 1,870,812
Committed - - -
Unassigned - (170,104) -
Total Fund Balances 280,450 (170,104) 1,870,812
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 280,450 $ 1,074 $ 1,870,812 Special Revenue
Packet Page 156

CITY OF SEASIDE

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(102)
Capital
Projects
Housing General
Successor Stormwater Capital
Fund Fund Projects
ASSETS
Cash and Investments 5,409,426 $ 17,259 $ 172,772 $
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable - - 17
Deposits with Others - - -
Due from Other Governments - 5,500 -
Notes/Loans Receivable 1,454,683 - -
Land Held for Resale 658,068 - -
Total Assets 7,522,177 $ 22,759 $ 172,789 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts Payable 3,444 $ 11,744 $ 13,088 $
Accrued Salaries and Benefits - 13,779 -
Deposits from Others - - -
Other Liabilities - - -
Due to Other Funds - - 241,885
Total Liabilities 3,444 25,523 254,973
Deferred Inflows of Resources:

Unavailable Revenue - Intergovernmental - - -
Fund Balance:

Restricted 7,518,733 - -
Committed - - -
Unassigned - (2,764) (82,184)
Total Fund Balances 7,518,733 (2,764) (82,184)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 7,522,177 $ 22,759 $ 172,789 $ Special Revenue
Packet Page 157

CITY OF SEASIDE

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(103)
Pension Cutino Park
Obligation Bond
Fund Fund Total
ASSETS
Cash and Investments 838 $ - $ 15,421,709 $
Restricted Cash and Investments 14,685 - 14,685
Cash with Fiscal Agent - 1,028,657 1,028,657
Accounts Receivable - - 818,417
Deposits with Others - - 112
Due from Other Governments - - 566,365
Notes/Loans Receivable - - 1,575,651
Land Held for Resale - - 658,068
Total Assets 15,523 $ 1,028,657 $ 20,083,664 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts Payable - $ - $ 854,314 $
Accrued Salaries and Benefits - - 68,072
Deposits from Others - - 108,751
Other Liabilities - - 156
Due to Other Funds - 288,062 750,839
Total Liabilities - 288,062 1,782,132
Deferred Inflows of Resources:

Unavailable Revenue - Intergovernmental - - 401,756
Fund Balance:

Restricted 15,523 740,595 16,610,271
Committed - - 1,575,531
Unassigned - - (286,026)
Total Fund Balances 15,523 740,595 17,899,776
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 15,523 $ 1,028,657 $ 20,083,664 $ Debt Service
Packet Page 158

CITY OF SEASIDE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(104)
Public Community Supplemental
Safety Services Law
Fund Fund Enforcement

REVENUES
Taxes $ - $ - $ -
Fines and Penalties 6,359 - -
Use of Money and Property 1,496 2,633 990
Intergovernmental Revenues 63,398 - 173,394
Charges for Services - 4,445 -
Other Revenue 3,216 - -
Total Revenues 74,469 7,078 174,384

EXPENDITURES
Current:

General Government - - -
Public Safety 136,366 - 102,831
Recreation - 174,584 -
Public Works - - -
Community Development - - -
Capital Outlay - - -
Debt Service:

Principal - - -
Interest and Fiscal Charges - - -
Total Expenditures 136,366 174,584 102,831

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (61,897) (167,506) 71,553

OTHER FINANCING SOURCES (USES)
Transfers In - 18,967 -
Transfers Out (18,967) - -
Total Other Financing
Sources (Uses) (18,967) 18,967 -
NET CHANGE IN FUND BALANCES (80,864) (148,539) 71,553
Fund Balances - Beginning of Year, Restated 361,645 816,435 290,163 FUND BALANCES - END OF YEAR $ 280,781 $ 667,896 $ 361,716 Special Revenue
Packet Page 159

CITY OF SEASIDE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(105)
Presidio O&M Laguna
Activities Proposition Grande
(POMA) Fund 172 Fund Project

REVENUES
Taxes - $ - $ - $
Fines and Penalties - - -
Use of Money and Property - 1,952 -
Intergovernmental Revenues - 160,182 -
Charges for Services 626,595 - -
Other Revenue - - 578,344
Total Revenues 628,547 160,182 578,344

EXPENDITURES
Current:

General Government - - -
Public Safety 107,194 - -
Recreation - - -
Public Works 904,671 - 77,465
Community Development - - -
Capital Outlay - - -
Debt Service:

Principal - - -
Interest and Fiscal Charges - - -
Total Expenditures 904,671 107,194 77,465

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 52,988 (276,124) 500,879

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - (2,568) (113)
Total Other Financing
Sources (Uses) - (2,568) (113)
NET CHANGE IN FUND BALANCES 52,988 (278,692) 500,766
Fund Balances - Beginning of Year, Restated 685,721 (77,554) (506,059) FUND BALANCES - END OF YEAR $ 407,029 $ (24,566) $ (5,293) Special Revenue
Packet Page 160

CITY OF SEASIDE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(106)
Community FORA
Development Gas Tax Non-Bond
Block Grant Fund Fund

REVENUES
Taxes - $ - $ - $
Fines and Penalties - - -
Use of Money and Property 1,789 204,402 7,675
Intergovernmental Revenues 520,042 1,381,421 1,628,221
Charges for Services - - -
Other Revenue 1,622 - -
Total Revenues 726,066 1,383,210 1,635,896

EXPENDITURES
Current:

General Government - - -
Public Safety - - -
Recreation - - -
Public Works - 1,735,056 484,438
Community Development 656,579 - -
Capital Outlay - - -
Debt Service:

Principal - 33,915 -
Interest and Fiscal Charges - 2,495 -
Total Expenditures 656,579 1,771,466 484,438

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 69,487 1,151,458 (388,256)

OTHER FINANCING SOURCES (USES)
Transfers In - 771,122 -
Transfers Out (83) - (3,150)
Total Other Financing
Sources (Uses) 767,972 (83) -
NET CHANGE IN FUND BALANCES 379,716 69,404 1,151,458
Fund Balances - Beginning of Year, Restated 228,459 814,281 2,227,032 FUND BALANCES - END OF YEAR $ 1,193,997 297,863 $ 3,378,490 $ Special Revenue
Packet Page 161

CITY OF SEASIDE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(107)
Housing Disability
Settlement Access PEG
Fund Fee Access Fund

REVENUES
Taxes $ - $ - $ -
Fines and Penalties - - -
Use of Money and Property 3,572 - -
Intergovernmental Revenues - - -
Charges for Services - - 33,640
Other Revenue - - -
Total Revenues 3,572 - 33,640

EXPENDITURES
Current:

General Government - - -
Public Safety - - -
Recreation - - -
Public Works - - -
Community Development - - 42,955
Capital Outlay - - -
Debt Service:

Principal - - -
Interest and Fiscal Charges - - -
Total Expenditures - - 42,955

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,572 - (9,315)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
NET CHANGE IN FUND BALANCES 3,572 - (9,315)
Fund Balances - Beginning of Year, Restated 1,164,930 3,415 8,200 FUND BALANCES - END OF YEAR $ 1,168,502 $ 3,415 $ (1,115) Special Revenue
Packet Page 162

CITY OF SEASIDE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(108)
SAFER Transportation
Recreation FEMA Safety and
Endowment Grant Fund Invest Plan

REVENUES
Taxes - $ - $ 1,339,188 $
Fines and Penalties - - -
Use of Money and Property - 857 6,478
Intergovernmental Revenues - - -
Charges for Services - - -
Other Revenue - - -
Total Revenues 857 - 1,345,666

EXPENDITURES
Current:

General Government - - -
Public Safety 730 - -
Recreation - - -
Public Works - - 5,334
Community Development - - -
Capital Outlay - - -
Debt Service:

Principal - - -
Interest and Fiscal Charges - - -
Total Expenditures - 730 5,334

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 857 1,340,332 (730)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - (1,250,812)
Total Other Financing
Sources (Uses) - - (1,250,812)
NET CHANGE IN FUND BALANCES 857 89,520 (730)
Fund Balances - Beginning of Year, Restated 279,593 1,781,292 (169,374) FUND BALANCES - END OF YEAR $ 280,450 $ 1,870,812 (170,104) $ Special Revenue
Packet Page 163

CITY OF SEASIDE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(109)
Capital
Projects
Housing General
Successor Stormwater Capital
Fund Fund Projects

REVENUES
Taxes - $ - $ - $
Fines and Penalties - - -
Use of Money and Property - 22,387 1,400
Intergovernmental Revenues - - -
Charges for Services - - -
Other Revenue 16,020 22,320 -
Total Revenues 38,407 22,320 1,400

EXPENDITURES
Current:

General Government - - -
Public Safety - - -
Recreation - - -
Public Works - 673,546 -
Community Development 486,706 - 108,492
Capital Outlay - - 584,153
Debt Service:

Principal - 59,200 -
Interest and Fiscal Charges - 6,103 -
Total Expenditures 486,706 738,849 692,645

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (448,299) (716,529) (691,245)

OTHER FINANCING SOURCES (USES)
Transfers In - 716,608 169,636
Transfers Out - (2,843) (118,981)
Total Other Financing
Sources (Uses) 713,765 - 50,655
NET CHANGE IN FUND BALANCES (448,299) (2,764) (640,590) Fund Balances - Beginning of Year, Restated 7,967,032 - 558,406 FUND BALANCES - END OF YEAR $ 7,518,733 $ (2,764) $ (82,184) Special Revenue
Packet Page 164

CITY OF SEASIDE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(110)
Pension Cutino Park
Obligation Bond
Bonds Fund Total

REVENUES
Taxes $ - $ 1,339,188 - $
Fines and Penalties - - 6,359
Use of Money and Property 63 68 255,762
Intergovernmental Revenues - 3,926,658 -
Charges for Services - - 664,680
Other Revenue 2,378 - 623,900
Total Revenues 2,441 68 6,816,547

EXPENDITURES
Current:

General Government 2,997 152 3,149
Public Safety - - 347,121
Recreation - - 174,584
Public Works - 3,880,510 -
Community Development - 1,294,732 -
Capital Outlay - - 584,153
Debt Service:

Principal 570,000 190,000 853,115
Interest and Fiscal Charges 180,871 189,619 379,088
Total Expenditures 753,868 379,771 7,516,452

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (751,427) (379,703) (699,905)

OTHER FINANCING SOURCES (USES)
Transfers In 745,215 93,932 2,515,480
Transfers Out - - (1,397,517)
Total Other Financing
Sources (Uses) 745,215 93,932 1,117,963
NET CHANGE IN FUND BALANCES (6,212) (285,771) 418,058
Fund Balances - Beginning of Year, Restated 21,735 1,026,366 17,481,718 FUND BALANCES - END OF YEAR $ 15,523 $ 740,595 $ 17,899,776 Debt service Funds
Packet Page 165

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

PUBLIC SAFETY FUND
YEAR ENDED JUNE 30, 2021
(111)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Fines and Penalties 10,000 $ 10,000 $ 6,359 $ $ (3,641) Use of Money and Property 4,300 4,300 1,496 (2,804)
Intergovernmental Revenues 174,778 174,778 63,398 (111,380) Other Revenue - - 3,216 3,216
Total Revenues 189,078 189,078 74,469 (114,609)

EXPENDITURES
Current:

Public Safety 217,411 293,901 136,366 157,535

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (28,333) (104,823) (61,897) 42,926

OTHER FINANCING SOURCES (USES)
Transfers Out - - (18,967) (18,967)
Total Other Financing
Sources (Uses) - - (18,967) (18,967)
NET CHANGE IN FUND BALANCE $ (28,333) $ (104,823) (80,864) $ 23,959 Fund Balance - Beginning of Year 361,645
FUND BALANCE - END OF YEAR $ 280,781
Packet Page 166

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

COMMUNITY SERVICES FUND
YEAR ENDED JUNE 30, 2021
(112)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ 1,075 1,075 $ 2,633 $ 1,558 $ Charges for Services 21,800 21,800 4,445 (17,355)
Total Revenues 22,875 22,875 7,078 (15,797)

EXPENDITURES
Current:

Recreation 251,027 251,027 174,584 76,443

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (228,152) (228,152) 60,646 (167,506)

OTHER FINANCING SOURCES (USES)
Transfers In 52,402 52,402 18,967 (33,435)
Total Other Financing
Sources (Uses) 52,402 52,402 18,967 (33,435)
NET CHANGE IN FUND BALANCE $ (175,750) $ (175,750) 27,211 (148,539) $ Fund Balance - Beginning of Year 816,435
FUND BALANCE - END OF YEAR $ 667,896
Packet Page 167

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

SUPPLEMENTAL LAW ENFORCEMENT FUND
YEAR ENDED JUNE 30, 2021
(113)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ - - $ 990 $ 990 $
Intergovernmental Revenues 125,000 125,000 173,394 48,394 Total Revenues 125,000 125,000 174,384 49,384

EXPENDITURES
Current:

Public Safety 402,085 125,000 102,831 299,254
NET CHANGE IN FUND BALANCE $ - $ 71,553 (277,085) 348,638 $ Fund Balance - Beginning of Year 290,163
FUND BALANCE - END OF YEAR $ 361,716
Packet Page 168

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

PRESIDIO O&M ACTIVITIES (POMA) FUND
YEAR ENDED JUNE 30, 2021
(114)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ 6,000 6,000 $ 1,952 $ $ (4,048) Charges for Services 1,039,000 1,039,000 626,595 (412,405) Total Revenues 1,045,000 1,045,000 628,547 (416,453)

EXPENDITURES
Current:

Public Works 1,042,433 1,062,408 904,671 157,737

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,567 (17,408) (276,124) (258,716)

OTHER FINANCING SOURCES (USES)
Transfers Out - - (2,568) (2,568)
Total Other Financing
Sources (Uses) - - (2,568) (2,568)
NET CHANGE IN FUND BALANCE $ 2,567 $ (17,408) (278,692) $ (261,284) Fund Balance - Beginning of Year 685,721
FUND BALANCE - END OF YEAR $ 407,029
Packet Page 169

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE
PROPOSITION 172 FUND
YEAR ENDED JUNE 30, 2021
(115)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental Revenues 121,975 $ 121,975 $ 160,182 $ 38,207 $

EXPENDITURES
Current:

Public Safety 122,000 122,000 107,194 14,806
NET CHANGE IN FUND BALANCE $ (25) $ 52,988 (25) 53,013 $ Fund Balance - Beginning of Year (77,554)
FUND BALANCE - END OF YEAR $ (24,566)
Packet Page 170

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

LAGUNA GRANDE PROJECT FUND
YEAR ENDED JUNE 30, 2021
(116)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Other Revenue 283,610 $ 283,610 $ 578,344 $ 294,734 $

EXPENDITURES
Current:

Public Works 62,931 62,931 77,465 (14,534)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 220,679 220,679 500,879 280,200

OTHER FINANCING SOURCES (USES)
Transfers Out (113) (113) - (113)
Total Other Financing
Sources (Uses) (113) (113) - (113)
NET CHANGE IN FUND BALANCE $ 220,566 220,566 $ 500,766 280,200 $ Fund Balance - Beginning of Year (506,059)
FUND BALANCE - END OF YEAR $ (5,293)
Packet Page 171

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

COMMUNITY DEVELOPMENT BLOCK GRANT FUND
YEAR ENDED JUNE 30, 2021
(117)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ 104,250 104,250 $ 204,402 $ 100,152 $ Intergovernmental Revenues 716,029 915,903 520,042 (395,861) Other Revenue - - 1,622 1,622
Total Revenues 820,279 1,020,153 726,066 (294,087)

EXPENDITURES
Current:

Community Development 568,316 768,190 656,579 111,611

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 251,963 251,963 69,487 (182,476)

OTHER FINANCING SOURCES (USES)
Transfers Out (83) (83) - (83)
Total Other Financing
Sources (Uses) (83) (83) - (83)
NET CHANGE IN FUND BALANCE $ 251,880 251,880 $ 69,404 $ (182,476) Fund Balance - Beginning of Year 228,459
FUND BALANCE - END OF YEAR $ 297,863
Packet Page 172

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

GAS TAX FUND
YEAR ENDED JUNE 30, 2021
(118)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ 2,200 2,200 $ 1,789 $ $ (411) Intergovernmental Revenues 1,658,898 1,658,898 1,381,421 (277,477) Total Revenues 1,661,098 1,661,098 1,383,210 (277,888)

EXPENDITURES
Current:

Public Works 2,504,307 2,662,718 1,735,056 927,662
Debt Service:

Principal 27,800 27,800 33,915 (6,115)
Interest and Fiscal Charges 2,511 2,511 2,495 16
Total Expenditures 2,534,618 2,693,029 1,771,466 921,563

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (873,520) (1,031,931) (388,256) 643,675

OTHER FINANCING SOURCES (USES)
Transfers In 876,668 876,668 771,122 (105,546)
Transfers Out (3,150) (3,150) (3,150) -
Total Other Financing
Sources (Uses) 873,518 873,518 767,972 (105,546)
NET CHANGE IN FUND BALANCE $ (2) $ (158,413) 379,716 $ 538,129 Fund Balance - Beginning of Year 814,281
FUND BALANCE - END OF YEAR $ 1,193,997
Packet Page 173

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

FORA NON-BOND FUND
YEAR ENDED JUNE 30, 2021
(119)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ - $ - $ 7,675 $ 7,675
Intergovernmental Revenues 2,342,026 3,532,132 1,628,221 (1,903,911) Other Revenue - - - -
Total Revenues 2,342,026 3,532,132 1,635,896 (1,896,236)

EXPENDITURES
Current:

Public Works 2,342,026 3,261,812 484,438 2,777,374
Total Expenditures 2,342,026 3,261,812 484,438 2,777,374 NET CHANGE IN FUND BALANCE $ - $ 270,320 1,151,458 $ 881,138 Fund Balance - Beginning of Year 2,227,032
FUND BALANCE - END OF YEAR $ 3,378,490
Packet Page 174

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

DISABILITY ACCESS FEE FUND
YEAR ENDED JUNE 30, 2021
(120)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Charges for Services - $ - $ - $ - $

EXPENDITURES
Current:

General Government - - - -
NET CHANGE IN FUND BALANCE $ - - $ - - $
Fund Balance - Beginning of Year 3,415
FUND BALANCE - END OF YEAR $ 3,415
Packet Page 175

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

PEG ACCESS FUND
YEAR ENDED JUNE 30, 2021
(121)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Charges for Services 50,000 $ 50,000 $ 33,640 $ $ (16,360)

EXPENDITURES
Current:

Community Development 50,000 50,000 42,955 7,045
NET CHANGE IN FUND BALANCE $ - - $ (9,315) $ (9,315)
Fund Balance - Beginning of Year 8,200
FUND BALANCE - END OF YEAR $ (1,115)
Packet Page 176

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

RECREATION ENDOWMENT FUND
YEAR ENDED JUNE 30, 2021
(122)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ 300 300 $ 857 $ 557 $

EXPENDITURES
Current:

Recreation - - - -
NET CHANGE IN FUND BALANCE $ 300 $ 300 857 $ 557
Fund Balance - Beginning of Year 279,593
FUND BALANCE - END OF YEAR $ 280,450
Packet Page 177

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

SAFER FEMA GRANT FUND
YEAR ENDED JUNE 30, 2021
(123)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental Revenues - $ - $ - $ - $

EXPENDITURES
Current:

Public Safety - - 730 (730)
NET CHANGE IN FUND BALANCE $ - - $ (730) $ (730)
Fund Balance - Beginning of Year (169,374)
FUND BALANCE - END OF YEAR $ (170,104)
Packet Page 178

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

TRANSPORTATION SAFETY AND INVESTMENT PLAN FUND
YEAR ENDED JUNE 30, 2021
(124)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental Revenues 1,000,000 $ 1,000,000 $ 1,339,188 $ 339,188 $ Use of Money and Property - - 6,478 6,478
Intergovernmental Revenues - - - -
Total Revenues 1,000,000 1,000,000 1,345,666 345,666

EXPENDITURES
Current:

Public Works 5,100 5,100 5,334 (234)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 994,900 994,900 1,340,332 345,432

OTHER FINANCING SOURCES (USES)
Transfers Out (2,923,900) (2,923,900) 1,673,088 (1,250,812) Total Other Financing
Sources (Uses) (2,923,900) (2,923,900) 1,673,088 (1,250,812) NET CHANGE IN FUND BALANCE $ (1,929,000) $ 89,520 (1,929,000) 2,018,520 $ Fund Balance - Beginning of Year 1,781,292
FUND BALANCE - END OF YEAR $ 1,870,812
Packet Page 179

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

HOUSING SUCCESSOR FUND
YEAR ENDED JUNE 30, 2021
(125)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Revenue from Use of Money
and Property $ 84,000 84,000 $ 22,387 $ $ (61,613)
Other Revenues 50,000 50,000 16,020 (33,980)
Total Revenues 134,000 134,000 38,407 (95,593)

EXPENDITURES
Current:

Community Development 2,089,767 2,167,746 486,706 1,681,040 NET CHANGE IN FUND BALANCE $ (1,955,767) $ (2,033,746) (448,299) $ 1,585,447 Fund Balance - Beginning of Year 7,967,032
FUND BALANCE - END OF YEAR $ 7,518,733
Packet Page 180

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

STORMWATER FUND
YEAR ENDED JUNE 30, 2021
(126)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Other Revenue 2,500 $ 2,500 $ 22,320 $ 19,820 $

EXPENDITURES
Current:

Public Works 1,325,691 1,325,691 673,546 652,145
Debt Service:

Principal 59,200 59,200 59,200 -
Interest and Fiscal Charges 6,103 6,103 6,103 -
Total Expenditures 1,390,994 1,390,994 738,849 652,145

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,388,494) (1,388,494) 671,965 (716,529)

OTHER FINANCING SOURCES (USES)
Transfers In 821,337 821,337 716,608 (104,729)
Transfers Out (2,843) (2,843) - (2,843)
Total Other Financing
Sources (Uses) 818,494 818,494 713,765 (104,729)
NET CHANGE IN FUND BALANCE $ (570,000) $ (570,000) 567,236 (2,764) $ Fund Balance - Beginning of Year -
FUND BALANCE - END OF YEAR $ (2,764)
Packet Page 181

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

GENERAL CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
(127)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ - - $ 1,400 $ 1,400 $

EXPENDITURES
Current:

Community Development 221,145 526,291 108,492 417,799
Capital Outlay 1,227,481 1,081,337 584,153 643,328
Total Expenditures 1,302,482 1,753,772 692,645 1,061,127

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,302,482) (1,753,772) 1,062,527 (691,245)

OTHER FINANCING SOURCES (USES)
Transfers In 106,145 476,145 169,636 (306,509)
Transfers Out - - (118,981) (118,981)
Total Other Financing
Sources (Uses) 476,145 106,145 50,655 (425,490)
NET CHANGE IN FUND BALANCE $ (1,196,337) $ (1,277,627) 637,037 (640,590) $ Fund Balance - Beginning of Year 558,406
FUND BALANCE - END OF YEAR $ (82,184)
Packet Page 182

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

PENSION OBLIGATION BONDS FUND
YEAR ENDED JUNE 30, 2021
(128)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ - $ - $ 63 $ 63
Other Revenue - - 2,378 2,378
Total Revenues - - 2,441 2,441

EXPENDITURES
Current:

General Government - - 2,997 (2,997)
Debt Service:

Principal 570,000 570,000 570,000 -
Interest and Fiscal Charges 180,871 180,871 180,871 -
Total Expenditures 750,871 750,871 753,868 (2,997)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (750,871) (750,871) (751,427) (556)

OTHER FINANCING SOURCES (USES)
Transfers In 750,871 750,871 745,215 (5,656)
Total Other Financing
Sources (Uses) 750,871 750,871 745,215 (5,656)
NET CHANGE IN FUND BALANCE $ - $ - (6,212) $ (6,212)
Fund Balance - Beginning of Year 21,735
FUND BALANCE - END OF YEAR $ 15,523
Packet Page 183

CITY OF SEASIDE

BUDGETARY COMPARISON SCHEDULE

CUTINO PARK BOND FUND
YEAR ENDED JUNE 30, 2021
(129)
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Use of Money and Property $ - $ - $ 68 $ 68
Total Revenues - - 68 68

EXPENDITURES
Current:

General Government - - 152 (152)
Debt Service:

Principal 190,000 190,000 190,000 -
Interest and Fiscal Charges 189,619 189,619 189,619 -
Total Expenditures 379,619 379,619 379,771 (152)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (379,619) (379,619) (379,703) (84)

OTHER FINANCING SOURCES (USES)
Transfers In - 93,932 93,932 -
Total Other Financing
Sources (Uses) - 93,932 - 93,932
NET CHANGE IN FUND BALANCE $ (379,619) $ (379,619) (285,771) $ 93,848 Fund Balance - Beginning of Year 1,026,366
FUND BALANCE - END OF YEAR $ 740,595
Packet Page 184
Packet Page 185

INTERNAL SERVICE FUNDS
Packet Page 186

CITY OF SEASIDE

FUND DESCRIPTIONS
(130)

INTERNAL SERVICE FUNDS
Internal service funds account for the financing of goods and/or services provided by one department to other departments within the City and to the Sanitation District. All expenses are charged to the operating departments through a monthly transfer.
501 Equipment Maintenance Fund
502 Insurance Fund
503 Management Information Systems Fund
Packet Page 187

CITY OF SEASIDE

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2021
(131)
Management
Self- Vehicle Information
Insurance Maintenance Systems
Fund Fund Fund Total
ASSETS
Current Assets:

Cash and Investments 1,838,537 $ 505,434 $ 481,561 $ 2,825,532 $ Restricted Cash and Investments 24,919 - - 24,919
Accounts Receivable 33,103 - - 33,103
Prepaids - - - -
Total Current Assets 1,896,559 505,434 481,561 2,883,554 Capital Assets:

Depreciable - 257,375 510,801 768,176
Less: Accumulated Depreciation - (257,375) (388,876) (646,251) Total Capital Assets, net - - 121,925 121,925
Total Assets 1,896,559 505,434 603,486 3,005,479

LIABILITIES
Current Liabilities:

Accounts Payable 24,434 79,643 21,692 125,769
Accrued Salaries and Benefits - 5,390 15,313 20,703
Interest Payable - - 94 94
Compensated Absences - 2,336 3,164 5,500
Claims Payable 74,238 - - 74,238
Capital Leases - - - -
Due to Other Funds - - - -
Total Current Liabilities 98,672 87,369 40,263 226,304
Long-Term Liabilities:

Compensated Absences - 17,178 29,110 46,288
Claims Payable 924,601 - - 924,601
Total Long-Term Liabilities 924,601 17,178 29,110 970,889 Total Liabilities 1,023,273 104,547 69,373 1,197,193

NET POSITION
Net Investment in Capital Assets - - 121,925 121,925
Unrestricted 873,286 400,887 412,188 1,686,361
Total Net Position $ 873,286 $ 400,887 $ 534,113 $ 1,808,286 Packet Page 188

CITY OF SEASIDE

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
(132)
Management
Self- Vehicle Information
Insurance Maintenance Systems
Fund Fund Fund Total

OPERATING REVENUES
Charges for Services 3,434,715 $ 569,066 $ 836,731 $ 4,840,512 $ Other Revenues 320 37,353 - 37,673
Total Operating Revenues 3,435,035 606,419 836,731 4,878,185

OPERATING EXPENSES
Salaries and Benefits - 254,485 282,235 536,720
Services and Supplies 147,080 580,097 316,124 1,043,301 Insurance 2,440,064 - - 2,440,064
Utilities - 2,595 100,965 103,560
Claims and Judgments 200,703 - - 200,703
Depreciation - - 29,264 29,264
Total Operating Expenses 2,787,847 837,177 728,588 4,353,612 OPERATING INCOME (LOSS) 647,188 108,143 (230,758) 524,573

NONOPERATING REVENUES (EXPENSES)
Investment Earnings 2,433 1,918 2,467 6,818
Interest Expense - - - -
Total Nonoperating Revenues
(Expenses) 1,918 2,433 2,467 6,818
INCOME (LOSS) BEFORE TRANSFERS 649,621 110,610 (228,840) 531,391 Transfers Out - (1,418) (2,369) (3,787)
CHANGE IN NET POSITION 649,621 108,241 (230,258) 527,604 Net Position - Beginning of Year 223,665 631,145 425,872 1,280,682 NET POSITION (DEFICIT) - END OF YEAR $ 400,887 873,286 $ 534,113 $ 1,808,286 $ Packet Page 189

CITY OF SEASIDE

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
(133)
Management
Self- Vehicle Information
Insurance Maintenance Systems
Fund Fund Fund Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Cash Receipts from Interfund Services
Provided 3,417,252 $ 606,419 $ 836,731 $ 4,860,402 $
Cash Paid to Employees for Services - (247,341) (271,918) (519,259) Cash Paid to Suppliers for Goods and
Services (2,773,029) (579,246) (413,406) (3,765,681)
Net Cash Provided (Used) by
Operating Activities 644,223 151,407 (220,168) 575,462

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Received from Other Funds - - - -
Transfers To Other Funds - (1,418) (334,699) (336,117)
Net Cash Provided (Used) by
Investing Activities - (1,418) (334,699) (336,117)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets - - (90,780) (90,780)
Proceeds from Sale of Capital Assets 5,548 - - 5,548
Net Cash Provided (Used) by
Capital and Related Financing
Activities 5,548 - (90,780) (85,232)

CASH FLOWS FROM INVESTING

ACTIVITIES
Interest Received (Paid) 1,918 2,433 2,467 6,818
Net Cash Provided (Used) by
Investing Activities 2,433 1,918 2,467 6,818

NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 652,204 (219,668) 160,931 (271,605) Cash and Cash Equivalents - Beginning
of Year 1,211,252 725,102 753,166 2,689,520

CASH AND CASH EQUIVALENTS - END
OF YEAR $ 505,434 1,863,456 $ 481,561 $ 2,850,451 $

RECONCILIATION OF OPERATING

INCOME (LOSS) TO NET CASH

PROVIDED (USED) BY OPERATING

ACTIVITIES
Operating Income (Loss) $ 647,188 $ 108,143 (230,758) $ 524,573 $ Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:

Depreciation - - 29,264 29,264
Changes in Assets, Deferred Outflows
of Resources, Liabilities, and Deferred
Inflows of Resources:
(Increase) Decrease in:

Accounts Receivable - (17,783) - (17,783)
Increase (Decrease) in:

Accounts Payable 16,295 3,446 3,683 23,424
Accrued Salaries - 2,190 3,433 5,623
Compensated Absences - 4,954 6,884 11,838
Claims Liability - (1,477) - (1,477)
Net Cash Provided (Used) by
Operating Activities $ 644,223 $ 151,407 (220,168) $ 575,462 $ Packet Page 190
Packet Page 191

CUSTODIAL FUNDS
Packet Page 192

CITY OF SEASIDE

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2021
(134)
Developer Watermaster Total Custodial
Deposits Fund Funds
ASSETS
Cash and Investments 786,085 $ 899,697 $ 1,685,782 $
Accounts Receivable - 18,272 18,272
Total Assets 899,697 804,357 1,704,054

LIABILITIES
Accounts Payable 12,868 44,995 57,863
Total Liabilities 12,868 44,995 57,863

NET POSITION
Restricted for: Individuals, Organizations, and
Other Governments 759,362 886,829 1,646,191
Total Net Position 759,362 $ 886,829 $ 1,646,191 $
Packet Page 193

CITY OF SEASIDE

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(135)
Developer Watermaster Total Custodial
Deposits Fund Funds

ADDITIONS
Contributions from other local governments and developers $ 5,909,947 806,711 $ 6,716,658 $ Total Additions 806,711 5,909,947 6,716,658

DEDUCTIONS
Payments to other local governments and developers 230,802 47,344 278,146 Total Deductions 47,344 230,802 278,146
CHANGE IN NET POSITION 5,679,145 759,367 6,438,512
Net Position, Beginning of Year, Restated (5) (4,792,316) (4,792,321) NET POSITION, END OF YEAR $ 886,829 759,362 $ 1,646,191 $ Packet Page 194
Packet Page 195

STATISTICAL SECTION
Packet Page 196
Packet Page 197

CITY OF SEASIDE

STATISTICAL SECTION OVERVIEW
FISCAL YEAR 2020–2021
(136)
This part of the City of Seaside’s (the City) annual comprehensive financial report presents detailed information as a context to aid in understanding the information in the financial statements, note disclosures, and required supplementary information regarding the City’s overall financial health.

Financial Trends Schedule #
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
Operating Information
These schedules contain service and infrastructure data to help the readers understand how the information in the City's financial reports relate to the services the City provides and the activities it performs.

Capital Assets and Operating Indicators by Function/Program Miscellaneous Statistics
Outstanding Debt Information
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the readers understand the environment within which the City's financial activities take place.

Demographic and Economic Statistics
Principal Employers
Full Time Equivalent City Employees by Function
Legal Debt Service Margin Information
Revenue Capacity
These schedules contain information to help the readers assess the City of Seaside's most significant local revenue resources, sales and transaction taxes and property taxes.

Governmental Funds - Revenues by Source
Governmental Funds - Taxes by Type
Assessed Valuation, Tax Rates, and Tax Levies
Principal Property Tax Payers
Top 25 Sales Tax Producers
Debt Capacity
These schedules present information to help the readers assess the affordability of the City of Seaside's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Direct and Overlapping Property Tax Rates
Property Tax Levies and Collections
Changes in Fund Balances - Governmental Funds
These schedules contain trend information to help the readers understand how the City of Seaside's financial performance and well-being have changed over time.

Net Position by Component
Changes in Net Position
Fund Balances - Governmental Funds
Packet Page 198

CITY OF SEASIDE

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 1
(137)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Government Activities
Net Investment in Capital Assets 55,616,126 $ 54,478,451 $ 51,872,826 $ 50,954,744 $ 50,040,441 $ 49,022,604 $ 54,350,475 $ 56,622,001 $ 54,433,656 $ 168,453,241 $ Restricted - 1,282,916 9,550,630 9,710,239 9,660,491 9,987,477 11,041,019 13,070,718 22,025,754 16,529,392 Total Unrestricted - Government Activities 10,670,706 11,603,796 4,838,270 (30,609,347) (27,683,363) (26,815,983) (32,746,156) (34,262,721) (32,454,795) (23,913,563) Total Government Activities 66,286,832 $ 67,365,163 $ 66,261,726 $ 30,055,636 $ 32,017,569 $ 32,194,098 $ 32,645,338 $ 35,429,998 $ 44,004,615 $ 161,069,070 $ Business-Type Activities
Net Investment in Capital Assets 9,559,385 $ 9,384,853 $ 9,327,351 $ 9,161,793 $ 9,001,236 $ 8,838,539 $ 8,759,020 $ 8,693,218 $ 8,630,526 $ 8,525,675 $ Restricted 562,469 540,257 543,036 545,635 545,635 550,634 550,634 550,634 550,635 550,633 Total Unrestricted - Business-Type Activities 576,405 784,227 821,517 571,472 481,764 427,342 325,542 (137,586) (80,585) (146,681) Total Business-Type Activities 10,698,259 $ 10,709,337 $ 10,691,904 $ 10,278,900 $ 10,028,635 $ 9,816,515 $ 9,635,196 $ 9,106,266 $ 9,100,576 $ 8,929,627 $ Primary Government
Net Investment in Capital Assets 65,175,511 $ 63,863,304 $ 61,200,177 $ 60,116,537 $ 59,041,677 $ 57,861,143 $ 63,109,495 $ 65,315,219 $ 63,064,182 $ 176,978,916 $ Unrestricted Net Position 12,388,023 11,247,111 5,659,787 (30,037,875) (27,201,599) (26,388,641) (32,420,614) (34,400,307) (32,535,380) (24,060,244) Net Investment in Capital Assets & Unrestricted Net Position 76,251,327 76,422,622 66,859,964 30,078,662 31,840,078 31,472,502 30,688,881 30,914,912 30,528,802 152,918,672 Restricted Net Position 562,469 1,823,173 10,093,666 10,255,874 10,206,126 10,538,111 11,591,653 13,621,352 22,576,389 17,080,025 Total Primary Government Net Position 76,985,091 $ 78,074,500 $ 76,953,630 $ 40,334,536 $ 42,046,204 $ 42,010,613 $ 42,280,534 $ 44,536,264 $ 53,105,191 $ 169,998,697 $ Source: City of Seaside
Packet Page 199

CITY OF SEASIDE

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 2
(138)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Primary Government - Program Revenues
Governmental Activities
Charges for Services:

General Government 59,175 $ 31,681 $ 40,876 $ 106,735 $ 188,062 $ 217,374 $ 297,811 $ 252,731 $ 968,286 $ 196,437 $ Public Safety 532,572 892,514 711,176 726,544 1,390,208 702,144 899,702 704,238 613,662 306,075 Recreation 355,048 318,484 326,626 353,884 346,200 369,254 431,753 430,767 237,205 58,659 Public Works 1,716,064 1,333,210 1,040,278 1,373,881 801,450 953,293 854,113 689,194 1,248,540 890,107 Community Development 295,873 358,813 515,513 740,415 703,797 738,646 930,582 801,354 1,032,421 662,754 Operating Grants and Contributions 987,852 994,437 1,020,495 2,104,725 2,147,228 1,617,304 2,829,733 1,589,329 10,522,616 3,433,800 Capital Grants and Contributions 2,049,433 393,635 106,134 666,409 166,888 840,389 3,582,841 1,155,650 878,861 1,575,799 5,996,017 4,322,774 3,761,098 6,072,593 5,743,833 5,438,404 9,826,535 5,623,263 15,501,591 7,123,631 Business - Type Activities
Charges for Services - Water Fund 778,252 863,888 814,484 707,032 678,368 648,474 668,476 656,972 761,556 1,029,925 Charges for Services - Golf Fund 335,413 336,333 336,913 337,153 337,053 336,613 335,663 339,363 337,362 335,013 1,113,665 1,200,221 1,151,397 1,044,185 1,015,421 985,087 1,004,139 996,335 1,098,918 1,364,938 7,109,682 5,522,995 4,912,495 7,116,778 6,759,254 6,423,491 10,830,674 6,619,598 16,600,509 8,488,569 General Revenues & Other Changes in Net Position
Governmental ActivitiesTaxes
Property Taxes 8,874,395 4,899,753 4,715,562 6,008,714 6,324,164 6,785,706 7,397,804 7,118,816 8,493,622 9,407,981 Gas Tax 938,940 756,186 1,054,371 843,349 699,318 616,804 706,363 576,499 705,093 707,659 Sales and Use Taxes 7,517,922 8,709,129 9,445,102 10,000,085 11,475,160 11,657,020 14,199,670 16,118,300 14,883,836 19,498,687 Transient Occupancy Tax 2,024,924 2,092,390 2,419,935 2,665,733 2,902,459 2,701,621 2,922,110 3,424,302 3,038,525 2,661,684 Other Taxes 3,951,208 6,793,409 4,984,854 3,962,379 4,434,597 4,493,014 4,726,372 4,960,249 5,747,067 6,615,147 23,307,389 23,250,867 22,619,824 23,480,260 25,835,698 26,254,165 29,952,319 32,198,166 32,868,143 38,891,158 Investment Earnings 609,116 436,500 638,839 523,547 50,097 80,448 203,822 296,165 296,448 499,736 Miscellaneous 636,769 151,842 113,086 22,779 223,414 570,180 527,169 514,565 3,305,155 1,533,760 Transfers and Other - 2,860 2,400 2,531 1,693 2,035 386 199,745 439 - 24,553,274 23,842,069 23,374,149 24,029,117 26,110,902 26,906,828 30,683,696 33,208,641 36,470,185 40,924,654 Business - type Activities
Investment Earnings 5,202 6,541 4,507 5,554 5,410 7,132 917 14,893 4,885 1,865 Miscellaneous - 1,128 23,616 11,738 - 14,065 1,565 1,437 26,993 3,487 Transfers - (2,860) (2,400) (2,531) (1,693) (2,035) (386) (399) (439) - 5,202 4,809 25,723 14,761 3,717 19,162 2,096 15,931 31,439 5,352 29,369,873 31,668,158 28,312,367 31,160,656 32,873,873 33,349,481 41,516,466 39,844,170 53,102,133 49,418,575 (continued)
Total Governmental Activities - Program Revenues
Total Business - Type Activities Program RevenuesTotal Governmental Activities - General Revenues Total Primary Government - Program Revenues
Total Taxes
Total Business - Type Activities - General Revenues
Total Primary Government-Program Revenues, General Revenues & Other Changes in Net Position Packet Page 200

CITY OF SEASIDE

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 2
(139)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental Activities
General Government 417,546 1,542,274 1,377,226 1,129,508 821,822 1,367,688 1,459,672 1,336,795 1,011,992 837,279 Public Safety 17,250,187 16,093,559 16,155,119 17,056,925 18,222,421 20,252,913 21,624,482 22,925,383 26,837,769 23,518,274 Recreation 1,594,176 1,647,702 1,837,260 2,171,171 2,382,676 2,119,933 2,795,333 3,045,073 2,756,528 2,619,777 Public Works 6,642,734 6,245,585 6,422,844 8,359,219 6,275,754 6,073,182 6,806,717 6,054,138 8,927,550 16,674,814 Community Development 2,889,792 1,557,164 1,767,207 1,222,876 1,868,761 2,026,315 2,427,146 3,005,889 3,500,840 3,423,683 Interest and fiscal charges 383,371 1,624,084 378,828 364,791 321,368 328,672 311,716 1,157,184 870,256 793,191 30,418,519 27,469,655 27,938,484 30,304,490 29,892,802 32,168,703 35,425,066 37,524,462 43,904,935 47,867,018 Business-Type Activities
Water Fund 520,281 763,486 765,971 732,871 839,023 803,438 842,091 1,130,030 721,190 1,154,566 Golf Fund 288,288 430,466 428,582 423,951 430,380 412,931 417,104 411,166 414,857 386,673 808,569 1,193,952 1,194,553 1,156,822 1,269,403 1,216,369 1,259,195 1,541,196 1,136,047 1,541,239 31,227,088 28,663,607 29,133,037 31,461,312 31,162,205 33,385,072 36,684,261 39,065,658 45,040,982 49,408,257 Net Revenue (Expenses)
Governmental Activities (24,422,502) (23,146,881) (24,177,386) (24,231,897) (24,148,969) (26,730,299) (25,598,531) (31,901,199) (28,403,344) (40,743,387) Business-type Activities 305,096 6,269 (43,156) (112,637) (253,982) (231,282) (255,056) (544,861) (37,129) (176,301) (23,140,612) (24,117,406) (24,220,542) (24,344,534) (24,402,951) (26,961,581) (25,853,587) (32,446,060) (28,440,473) (40,919,688) Changes in Net Position
Governmental Activities 130,772 695,188 (803,237) (202,780) 1,961,933 176,529 5,085,165 1,307,442 8,066,841 181,267 Business-type Activities 11,078 310,298 (17,433) (97,876) (250,265) (212,120) (252,960) (528,930) (5,690) (170,949) 441,070 $ 706,266 $ (820,670) $ (300,656) $ 1,711,668 $ (35,591) $ 4,832,205 $ 778,512 $ 8,061,151 $ 10,318 $ Source: City of Seaside
Changes in Net Position
Total Governmental Activities Expenses
Total Business-Type Activities Expenses
Total Primary Government Expenses
Total Net Revenue (Expenses)
Packet Page 201

CITY OF SEASIDE
FUND BALANCES – GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 3
(140)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable 3,254,529 $ 3,155,729 $ 3,156,728 $ 3,116,562 $ 3,089,105 $ 3,051,630 $ 3,002,927 $ 2,734,701 $ 2,425,725 $ 2,655,428 $ Restricted - 27,478 76,316 98,286 98,286 482,428 482,428 482,428 - 482,428 Committed 1,508,869 4,121,112 5,243,069 4,827,407 4,827,407 6,120,075 6,120,075 12,340,000 9,045,764 11,459,000 Assigned 564 569 209 4,875 4,875 4,877 4,880 4,504 - 504,504 Unassigned (97,348) 396,104 1,410,727 2,464,966 4,054,668 3,144,680 9,278,725 3,413,168 8,343,680 15,181,618 General Fund Balance 4,666,614 7,700,992 9,887,049 10,512,096 12,074,341 12,803,690 18,889,035 18,974,801 19,815,169 30,282,978 Other Governmental Funds
Nonspendable 8,098,096 8,084,683 49 3,867 1,980 1,980 1,980 - - - Restricted 1,164,319 1,228,208 9,363,589 9,571,953 9,562,575 9,505,049 9,482,126 28,494,592 33,968,661 20,157,004 Committed 1,995,681 1,638,601 1,754,005 1,980,869 1,688,818 2,138,854 3,130,796 1,754,905 1,877,290 8,062,440 Assigned 496,003 951,671 810,726 868,616 995,008 846,784 97,300 - - - Unassigned (4,968,483) (1,823,048) (1,916,602) (2,006,146) (2,036,626) (2,049,169) (4,952,524) (5,288,174) (2,269,663) (286,026) Total Other Governmental Fund
Balance 10,080,115 6,785,616 10,011,767 10,419,159 10,211,755 10,443,498 7,759,678 24,961,323 33,576,288 27,933,418 Total Governmental Fund Balance 11,452,230 $ 17,781,107 $ 19,898,816 $ 20,931,255 $ 22,286,096 $ 23,247,188 $ 26,648,713 $ 43,936,124 $ 53,391,457 $ 58,216,396 $ $0
$70,000,000$60,000,000$50,000,000$40,000,000$30,000,000$20,000,000$10,000,000 General
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
and Other Governmental Fund
Balance
General Fund Balance Total Other Governmental Fund Balance $Ͳ
$70,000,000$60,000,000$50,000,000$40,000,000$30,000,000$20,000,000$10,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund Balance
Packet Page 202

CITY OF SEASIDE
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 4
(141)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes 22,313,408 $ 19,790,958 $ 20,732,419 $ 22,531,390 $ 25,029,799 $ 25,527,624 $ 29,245,956 $ 32,136,232 $ 32,163,050 $ 38,183,499 $ Licenses and permits 276,758 298,160 435,167 569,497 453,758 547,258 746,988 603,923 685,435 813,155 Fines and penalties 91,140 134,837 91,877 125,689 116,750 191,194 91,341 110,728 108,119 116,266 Use of money and property 368,560 303,882 306,163 279,813 302,797 337,310 468,163 544,684 569,931 492,918 Intergovernmental 5,651,665 3,542,999 3,099,137 3,576,581 3,097,446 2,715,012 7,497,261 3,206,397 11,818,608 6,623,069 Charges for services 652,951 669,340 682,744 2,054,044 1,768,547 1,478,879 1,707,356 1,458,410 1,823,977 1,045,239 Other Revenues 1,200,698 3,417,864 1,780,351 808,305 767,762 1,340,461 809,075 496,874 3,847,936 1,533,760 Total Revenues 30,555,180 28,158,040 27,127,858 29,945,319 31,536,859 32,137,738 40,566,140 38,557,248 51,017,056 48,807,906 Expenditures
Current
General Government 248,923 935,513 1,056,694 984,027 810,614 1,031,050 1,213,228 1,167,310 730,687 241,994 Public Safety 16,314,604 15,762,303 15,804,070 17,012,057 17,612,637 19,006,092 20,498,579 20,987,803 23,067,859 21,454,742 Recreation 1,394,662 1,478,233 1,705,813 2,086,340 2,323,397 2,554,317 2,504,953 2,921,316 2,448,648 2,435,607 Public Works 4,454,361 4,086,506 4,427,655 6,489,481 4,941,280 5,097,142 5,454,110 5,035,819 6,442,551 7,563,672 Community Development 2,639,973 1,394,631 1,105,985 1,323,926 2,007,029 2,086,472 2,306,086 3,295,662 3,027,532 3,708,223 Capital Outlay 2,869,732 258,027 421 89,241 1,129,436 1,174,740 6,896,281 3,863,946 2,709,517 7,245,880 Debt Service
Principal 2,427,813 570,518 756,217 1,077,674 995,703 986,801 701,459 835,188 1,656,624 1,212,175 Interest and Fiscal Charges 981,233 389,537 380,166 364,445 323,882 326,786 306,648 1,042,479 887,916 824,461 Total Expenditures 31,331,301 24,875,268 25,237,021 29,427,191 30,143,978 32,263,400 39,881,344 39,149,523 40,971,334 44,686,754 Revenues over (under) Expenditures (776,121) 3,282,772 1,890,837 518,128 1,392,881 (125,662) 684,796 (592,275) 10,045,722 4,121,152 Other Financing Sources (Uses)
Debt Issuance - - - - - - - 16,110,000 -
Premium on Bonds Issued - - - - - - - 288,670 - Proceeds from Land Held for Resale 700,000 Sale of Capital Assets - - - - - - 1,075,080 - -
Capital Leases 155,760 397,749 218,772 567,814 28,477 1,127,047 1,610,960 - - Transfer In 5,264,711 2,178,123 2,562,025 2,664,936 1,986,367 3,084,350 1,180,794 3,810,797 9,021,030 11,432,724 Transfer Out (5,264,711) (2,166,033) (2,553,925) (2,718,439) (2,052,884) (3,124,643) (1,150,105) (3,806,999) (9,016,855) (11,428,937) Total Other Financing Sources (Uses) 155,760 409,839 226,872 514,311 (38,040) 1,086,754 2,716,729 16,402,468 4,175 703,787 Net Change in Fund Balance (620,361) $ 3,692,611 $ 2,117,709 $ 1,032,439 $ 1,354,841 $ 961,092 $ 3,401,525 $ 15,810,193 $ 10,049,897 $ 4,824,939 $

11.98% 3.90% 4.50% 4.92% 4.55% 4.23% 3.06% 5.32% 6.65% 5.44% Source: City of Seaside
Debt Service as a percentage of non-capital expenditures Packet Page 203

CITY OF SEASIDE
GOVERNMENTAL FUNDS – REVENUES BY SOURCE

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 5
(142)
Fiscal Year Total Licenses Fines and Use of Money Inter- Charges for Other Total Governmental Ending June 30 Taxes and Permits Forfeitures & Property governmental Services Revenues Revenues 2012 22,313,408 276,758 91,140 368,560 5,651,665 652,951 1,200,698 30,555,180 $ 2013 19,790,958 298,160 134,837 303,882 3,542,999 669,340 3,417,864 28,158,040 $ 2014 20,732,419 435,167 91,877 306,163 3,099,137 682,744 1,780,351 27,127,858 $ 2015 22,531,390 569,497 125,689 279,813 3,576,581 2,054,044 808,305 29,945,319 $ 2016 25,029,799 453,758 116,750 302,797 3,097,446 1,768,547 767,762 31,536,859 $ 2017 25,527,624 547,258 191,194 337,310 2,715,012 1,478,879 1,340,461 32,137,738 $ 2018 29,245,956 746,988 91,341 468,163 7,497,261 1,707,356 1,884,155 41,641,220 $ 2019 32,136,232 603,923 110,728 544,684 3,206,397 1,458,410 496,874 38,557,248 $ 2020 32,163,050 685,435 108,119 569,931 11,818,608 1,823,977 3,847,936 51,017,056 $ 2021 38,183,499 813,155 116,266 492,918 6,623,069 1,045,239 1,533,760 48,807,906 $ Source: City of Seaside
Packet Page 204

CITY OF SEASIDE
GOVERNMENTAL FUNDS – TAXES BY TYPE

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 6
(143)
Transient Total
Fiscal Year Transaction Occupancy Franchise Business License Utility Property Tax Total Governmental Ending June 30 Sales Taxes Taxes Tax Taxes Taxes Users Tax Secured Unsecured Transfer Tax Other Property Tax Funds 2012 4,571,913 2,856,186 2,024,924 1,196,856 543,596 2,210,756 3,912,641 50,942 49,988 4,895,606 4,013,570 22,313,408 2013 5,307,695 3,304,931 2,092,390 1,231,440 591,619 2,360,028 4,793,222 50,635 48,317 10,680 4,892,173 19,790,958 2014 5,902,317 3,435,136 2,419,935 1,175,730 673,048 2,302,678 4,720,196 51,917 49,573 1,889 4,821,686 20,732,4192015 6,260,528 3,632,758 2,665,733 1,220,294 538,658 2,205,568 5,891,501 58,141 56,930 1,278 6,006,572 22,531,390 2016 7,404,844 3,781,475 2,902,459 1,438,068 770,258 2,236,406 3,181,669 58,670 64,252 3,191,699 3,304,590 25,029,799 2017 7,647,430 3,899,854 2,701,621 1,423,017 585,551 2,484,448 3,451,307 58,697 81,486 3,194,213 3,591,490 25,527,624 2018 9,037,749 4,002,221 2,922,110 1,428,148 733,249 2,512,175 3,892,665 62,706 82,029 4,572,904 4,037,400 29,245,9562019 10,675,832 4,341,215 3,424,302 1,725,050 820,067 2,415,132 3,384,957 64,457 101,750 5,183,470 3,551,164 32,136,232 2020 9,486,312 4,629,453 3,038,525 1,288,512 843,833 2,405,126 4,513,232 73,274 111,308 5,773,475 4,697,814 32,163,050 2021 13,704,426 5,162,732 2,661,684 1,764,353 630,058 2,804,068 5,234,386 73,991 99,361 6,756,098 5,407,738 38,891,157 Source: City of Seaside
Packet Page 205

CITY OF SEASIDE

ASSESSED VALUATION, TAX RATES, AND TAX LEVIES

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 7
(144)
Fiscal Year City's Taxable % of Change - Total Direct
Ending June 30 Secured Unsecured Assessed Value from Prior Year Tax Rate 2012 1,647,777,306 81,714,834 $ 1,729,492,140 -2.14% 1.0% 2013 1,628,649,432 84,740,441 $ 1,713,389,873 -0.93% 1.0% 2014 1,712,430,411 84,070,907 $ 1,796,501,318 4.85% 1.0% 2015 1,863,691,605 84,264,758 $ 1,947,956,363 8.43% 1.0% 2016 1,963,429,698 91,618,504 $ 2,055,048,202 5.50% 1.0% 2017 2,077,816,415 96,677,133 $ 2,174,493,548 5.81% 1.0% 2018 2,194,201,642 93,618,524 $ 2,287,820,166 5.21% 1.0% 2019 2,329,642,423 97,782,873 $ 2,427,425,296 6.10% 1.0% 2020 2,480,057,663 99,712,200 $ 2,579,769,863 6.28% 1.0% 2021 2,617,417,043 104,028,528 $ 2,721,445,571 5.49% 1.0% Source: Hinderliter de Llamas, Monterey County Assessor Notes:

In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re- assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. $500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
City's Taxable Assessed Valuation
Assesssed Value
Packet Page 206

CITY OF SEASIDE

PRINCIPAL PROPERTY TAX PAYERS
CURRENT FISCAL YEAR AND FISCAL YEAR 2011-2012

OPERATING INFORMATION
SCHEDULE 8
(145)
FY 2020-2021
Taxable Assessed Ratio to Total City's Taxable Assessed Ratio to Total City's Property Owner Rank Value Assessed Valuation Property Owner Rank Value Assessed Valuation Sunbay Resorts Associates LLC 1 39,246,249 $ 1.44% Sunbay Resorts Associates LLC 1 34,591,390 $ 2.00% Seaside Housing LP 2 35,982,037 $ 1.32% Seaside Laguna Limited 2 26,984,646 $ 1.56% Seaside Laguna Limited 3 28,122,012 $ 1.03% B & B Golf Course Properties LLC 3 14,706,642 $ 0.85% California-American Water Co. 4 25,092,516 $ 0.92% California-American Water Co. 4 12,926,272 $ 0.75% Verducci Enterprises LP 5 21,184,906 $ 0.78% Seaside Housing LP 5 10,983,460 $ 0.64% B & B Golf Course Properties LLC 6 18,098,119 $ 0.67% P and S Real Estate Company 6 10,866,049 $ 0.63% Hovercraft LLC / BJC Seaside LLC 7 17,583,024 0.65%
Seaside City Center Project LLC
(pending appeals on parcels) 7 9,764,663 0.56%
Seaside Hospitality LP 8 17,226,246 $ 0.63% 1050 South 12th Street LLC 8 7,398,405 $ 0.43% Cappo Real Estate Holdings LLC 9 16,001,628 $ 0.59% Bay View Community LLC 9 7,358,091 $ 0.43% Lithia Real Estate Inc. 10 12,602,564 $ 0.46% Miref Seaside LLC 10 7,102,448 $ 0.41% Total Top 10 Taxpayers' Totals $ 231,139,301 8.49% Total Top 10 Taxpayers' Totals 142,682,066 $ 8.25% City's Total Assessed Valuation $ 2,721,445,571 100% City's Total Assessed Valuation $ 1,729,492,140 100% Source:

Monterey County Tax Roll
HdL, Coren Cone
FY 2011-2012

1.44%

1.32%

1.03%

0.92%

0.78%

0.67%

0.65%

0.63%

0.59%

0.46%
Sunbay Resorts Associates LLC
Seaside Housing LP
Seaside Laguna Limited
California-American Water Co.

Verducci Enterprises LP
B & B Golf Course Properties LLC
Hovercraft LLC / BJC Seaside LLC
Seaside Hospitality LP
Cappo Real Estate Holdings LLC
Lithia Real Estate Inc.

Percentage
to the City's
Total Assessed Valuation
City's Top Ten Principal Property Tax Payers - June 30, 2018

2.00%

1.56%

0.85%

0.75%

0.64%

0.63%

0.56%

0.43%

0.41%
Sunbay Resorts Associates LLC
Seaside Laguna Limited
B & B Golf Course Properties LLC
California-American Water Co.

Seaside Housing LP
P and S Real Estate Company
Seaside City Center Project LLC…
1050 South 12th Street LLC
Bay View Community LLC
Miref Seaside LLC Percentage
to the City's
Total Assessed Valuation
City's Top Ten Principal Property Tax Payers - June 30, 2007

1.67%

1.16%

0.87%

0.75%

0.72%

0.68%

0.66%

0.52%

0.43%
Sunbay Resorts Associates LLC
Seaside Housing LP
Seaside Laguna Limited
California-American Water Co.

Verducci Enterprises LP
B & B Golf Course Properties LLC
Hovercraft LLC / BJC Seaside LLC
Seaside Hospitality LP
Cappo Real Estate Holdings LLC
Lithia Real Estate Inc.

Percentage
to the City's
Total Assessed Valuation
City's Top Ten Principal Property Tax Payers - June 30, 2020

1.73%

0.71%

0.38%

0.62%

0.35%

0.36%

0.34%

0.40%

0.30%

0.31%
Sunbay Resorts Associates LLC
Seaside Laguna Limited
B & B Golf Course Properties LLC
California-American Water Co.

Seaside Housing LP
P and S Real Estate Company
Seaside City Center Project LLC…
1050 South 12th Street LLC
Bay View Community LLC
Miref Seaside LLC
Percentage
to the City's
Total Assessed Valuation
City's Top Ten Principal Property Tax Payers - June 30, 2010 Packet Page 207

CITY OF SEASIDE
TOP 25 SALES TAX PRODUCERS
(IN ALPHABETICAL ORDER)
2011-2012 AND 2020-2021

OPERATING INFORMATION
SCHEDULE 9
(146)
(In Alphabetical Order)
Audi Leasing Ltd Bentley
Leasing Lexus Monterey Peninsula 7 Eleven Granite Rock
Audi Monterey Peninsula Porsche Monterey Arco AM PM Home Depot BMW of Monterey
Premier Chevrolet And
Cadillac Of Seaside Audi Monterey Peninsula Land Rover Monterey Built In Distributors Quick Lane BMW of Monterey Porsche Monterey Cardinale Nissan Reef Built In Distributors Quick Lane
Cypress Coast Subaru
Seaside Chyslr Dodge Jeep
Ram Butts Acura Rod & Ros Gas & Food Mart
Ferguson Enterprises Seaside Shell Butts Chevrolet Cadillac Seaside Shell Granite Rock Tesla Motors Cardinale Nissan Seaside Union 76 Higher Level of Care
Seaside Toyota Lease Trust Chilis Smart & Final
Home Depot Val Strough Honda Mazda Cost Plus World Market Val Strough Honda Mazda In N Out Burger Victory Toyota Cypress Coast Subaru Victory Toyota Lexus Jaguar Monterey Land
Rover Monterey Volvo
Monterey Victory Toyota Lexus Ferguson Enterprises Walgreens Land Rover Monterey
Financial Services Vehicle
Trust
Source: HdL
Top 25 Sales Tax Producers
2020 -2021 2011 - 2012
Packet Page 208

CITY OF SEASIDE

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 10
(147)
(Per $100 Assessed Valuation)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
City Basic Levy (1) 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000%Overlapping Rates:

Monterey Peninsula College Series A, B, & C 0.02357% 0.02237% 0.01577% 0.03247% 0.02304% 0.02234% 0.02166% 0.02119% 0.02048% 0.02017% Monterey Peninsula Unified 2010 Series A 0.02879% 0.02797% 0.02131% 0.02277% 0.03000% 0.03000% 0.02890% 0.09196% 0.11707% 0.04145% Total Overlapping Rates 0.05236% 0.05034% 0.03708% 0.05524% 0.05304% 0.05234% 0.05056% 0.11315% 0.13755% 0.06162% Total Direct and Overlapping (2) Rates 1.05236% 1.05034% 1.03708% 1.05524% 1.05304% 1.05234% 1.05056% 1.11315% 1.13755% 1.06162% City's Share of 1% Levy per Proposition 13 (3) 0.177% 0.776% 0.178% 0.178% 0.178% 0.178% 0.178% 0.178% 0.178% 0.178%Voter Approved City Debt Rate 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%Redevelopment Rate (4) 1.000% n/a n/a n/a n/a n/a n/a n/a n/a n/aTotal Direct Rate (5) 64.313% 64.206% 18.098% 18.080% 18.064% 18.053% 18.038% 18.043% 18.012% 18.001% Notes:¹In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. ²Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.³City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levyhas been subtracted where known.

Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 ၪ per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.ၫTotal Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013-14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.

Challenges to recognized enforceable obligations are assumed to have been resolved during 2012-13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

Data Source: HdL, Coren & Cone and Monterey County Assessor 2010/2011 - 2019/2020 Tax Rate Table Packet Page 209

CITY OF SEASIDE

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 11
(148)
Taxable
Fiscal Year Assessed Property Property Tax Percentage
Ending June 30 Valuation Tax Levies Collections of Collections 2012 1,729,492,140 3,987,517 3,896,417 97.72%
2013 1,713,389,873 3,950,392 3,851,877 97.51%
2014 1,796,501,318 4,142,013 4,041,845 97.58%
2015 1,947,956,363 4,491,208 4,386,410 97.67%
2016 2,055,048,202 4,738,119 4,630,765 97.73%
2017 2,174,493,548 5,013,295 4,892,145 97.58%
2018 2,287,820,166 5,274,798 5,154,972 97.73%
2019 2,427,425,296 5,597,643 5,596,120 99.97%
2020 2,579,769,863 5,947,917 5,888,949 99.01%
2021 2,721,445,571 6,274,021 6,248,602 99.59%
Source:

City of Seaside and County of Monterey, Property Tax Revenue 2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Property Tax Collections
Packet Page 210

CITY OF SEASIDE

LEGAL DEBT MARGIN INFORMATION
JUNE 30, 2021

OPERATING INFORMATION
SCHEDULE 12
(149)
$ 2,721,445,571
15%
Total Debt Limit $ 408,216,836
-
Legal Debt Margin $ 408,216,836
Source: HdL, City of Seaside
The City of Seaside has no general bonded indebtedness.

Total Assessed Value of Property
Debt limit percentage ( per Government Code)
Amount of Debt Applicable to Debt Limit
Section 43605 of the Government Code of the State of California limits the amount of general bonded indebtedness for public improvements to 15% of the assessed valuation of all real and personal property in the City.

Packet Page 211

CITY OF SEASIDE

RATIOS OF TOTAL DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(IN THOUSANDS)
JUNE 30, 2021

OPERATING INFORMATION
SCHEDULE 13
(150)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental Activities
Lease Revenue Bonds 6,200 $ 5,975$ 5,715$ 5,420$ 5,085$ 4,710$ 4,290 $ 19,905 $ 18,980 $ 17,990 $ Notes Payable 1,447 1,199 935 650 343 35 12 4 -
HUD Obligation - - 409 272 136 - - - - Capital Leases 767 467 1,057 1,076 695 1,455 2,773 2,377 1,604 1,382 Total bonds and notes payable 8,114 $ 7,941 $ 8,116 $ 7,418 $ 6,259 $ 6,200 $ 7,075 $ 22,286 $ 20,584 $ 19,372 $ Business Type
Bonds Payable 3 3,827 3,770 3,667 3,600 3,527 3,450 3,415 3,325 3,235 3,120 Capital Leases - - - - - - - - 12 7
Total bonds and notes payable 3,827 $ 3,770 $ 3,667 $ 3,600 $ 3,527 $ 3,450 $ 3,415 $ 3,325 $ 3,247 $ 3,127 $ 11,941 $ 11,711 $ 11,783 $ 11,018 $ 9,786 $ 9,650 $ 10,490 $ 25,611 $ 23,831 $ 22,499 $

35.85% 34.92% 35.22% 32.34% 28.64% 28.16% 31.06% 76.37% N/A N/A

0.0141% 0.0139% 0.0140% 0.0120% 0.0101% 0.0103% 0.0107% 0.0257% 0.0239% 0.0216% $358.46 $349.23 $352.19 $323.38 $286.43 $281.59 $310.58 $763.66 N/A N/A Note:1. See the Demographic Statistics Schedule for detail information on personal income and population.2. Source - Notes to the Financial Statements, Note 3E Long Term Liabilities3. The Business Type Bonds Payable are for Golf Course Renovations. B&B Golf Course Properties leases the golf courses from the City. The lease revenue payments received by the City are pledged to pay the scheduled principal and interest payments on the lease revenue bonds which is scheduled to occurthrough 2037.

4. The outstanding debt of governmental and business-type activities includes an adjustment for unamortized premiums and discounts.

Total Outstanding Debt Percentage of Personal IncomePercentage of Assessed ValueNet outstanding debt Per Capita Packet Page 212

CITY OF SEASIDE

DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 2021

OPERATING INFORMATION
SCHEDULE 14
(151)
2020-21 Assessed Valuation: $2,721,445,571
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) Debt 6/30/21 Monterey Peninsula Community College District $109,868,522 6.674% $7,332,625 Monterey Peninsula Unified School District 220,056,122 18.417% 40,527,736 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $47,860,361 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Monterey County General Fund Obligations $139,253,793 3.674% $5,116,184 Monterey County Board of Education Certificates of Participation 5,006,000 3.674% 183,920 City of Seaside General Fund Obligations 15,250,000 100% 15,250,000 City of Seaside Pension Obligation Bonds 2,740,000 100% 2,740,000 Monterey County Water Resources Agency General Fund Obligations 20,370,000 3.674% 748,394 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $24,038,498 Less: Monterey County supported obligations 121,139
City of Seaside supported obligations 10,565,000
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $13,352,359 OVERLAPPING TAX INCREMENT DEBT (Successor Agency):

Fort Ord Reuse Authority Tax Allocation Bonds $30,705,000 34.889% $10,712,667 City of Seaside Tax Allocation Bonds $1,850,000 100% $1,850,000 $12,562,667
TOTAL GROSS DIRECT DEBT $17,990,000
TOTAL NET DIRECT DEBT $7,425,000
TOTAL GROSS OVERLAPPING DEBT $66,471,526
TOTAL NET OVERLAPPING DEBT $66,350,387
GROSS COMBINED TOTAL DEBT $84,461,526 (2)
NET COMBINED TOTAL DEBT $73,775,387
(1)
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligation Ratios to 220-21 Assessed Valuation:

Total Direct and Overlapping Tax and Assessment Debt 1.76% Total Gross Direct Debt ($17,990,000) 0.66%
Total Net Direct Debt ($7,425,000) 0.27%
Gross Combined Total Debt 3.10%
Net Combined Total Debt 2.71%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,615,452,458):

Total Overlapping Tax Increment Debt 0.78%
Source: California Municipal Statistics, Inc.

The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

Packet Page 213

CITY OF SEASIDE

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS

OPERATING INFORMATION
SCHEDULE 15
(152)
% of Population % of Population
Calendar Personal Income Personal Income City's over 25 with High over 25 with Year Population (in thousands) Per Capita Unemployment Rate Median Age School Diploma Bachelor's Degree 2012 33,312 728,733 $ 21,876 $ 5.8% 30.7 72.7% 19.8%2013 33,534 761,322 $ 22,703 $ 5.4% 30.9 73.2% 21.8%2014 33,456 753,998 $ 22,537 $ 9.3% 31.1 74.2% 22.5% 2015 34,071 726,779 $ 21,331 $ 8.3% 31.6 72.6% 22.9%
2016 34,165 719,671 $ 21,064 $ 7.8% 31.8 75.8% 22.0%2017 34,270 736,654 $ 21,561 $ 7.5% 31.2 76.1% 21.6% 2018 33,776 782,175 $ 23,157 $ 2.7% 31.9 76.9% 22.6%2019 33,537 842,577 $ 25,123 $ 2.7% 32.3 80.1% 23.0% 2020 32,121 888,707 $ 27,667 $ 9.8% 32.8 80.7% 23.3%
Source: HdL, Coren & Cone
Packet Page 214

CITY OF SEASIDE

PRINCIPAL EMPLOYERS
2020-2021

OPERATING INFORMATION
SCHEDULE 16
(153)
Estimated
City's Principal Employers Product/Function Number of Employees California State University Monterey Bay Education 1,000 31%U.S. Defense Department Military 1,300 40%Monterey Peninsula Unified School District Education 200 6%Seaside Auto Center, and related auto services Auto sales and service 200 6%City of Seaside Government 150 5%Embassy Suites Lodging/visitor services 150 5%California Department of Motor Vehicles Government 100 3%Home Depot Retail 100 3%Holiday Inn Express Lodging/visitor services 40 1% TOTALS 3,240 100%
Source: City of Seaside Draft General Plan Update, May 2016.

Packet Page 215

CITY OF SEASIDE

FULL TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 17
(154)
FTE by Department 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Office of the City Manager 14.00 14.00 4.00 4.00 8.00 6.00 3.00 3.00 4.00 5.00 3.00 City Attorney 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00 Legislative Body 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Administrative Services 10.50 11.50 8.00 8.00 8.00 6.00 8.00 8.00 10.00 10.00 7.00 Human Resources* n/a n/a n/a n/a n/a 2.00 2.00 3.00 3.00 3.00 3.00 Public Safety 73.00 73.00 46.00 47.00 51.00 50.00 50.00 53.00 54.00 54.00 44.00 Fire 34.50 34.50 23.00 24.00 23.00 25.00 25.00 26.00 28.00 28.00 27.00 Recreation** n/a n/a n/a n/a n/a 2.00 5.00 6.00 6.00 5.00 4.00 Engineering & Public Works n/a n/a n/a n/a n/a n/a 29.00 37.00 37.00 37.00 33.00 Community Development n/a n/a n/a n/a n/a n/a 8.00 10.00 10.00 10.00 11.00 Resource Management*** 76.00 73.00 35.00 36.00 37.00 36.00 n/a n/a n/a n/a n/a Total Full Time Equivalent Employees 211.00 215.00 122.00 125.00 133.00 133.00 136.00 152.00 159.00 158.00 138.00 * Human Resources was previously included in Administrative Services** Recreation was previously included in Resource Management*** Resource Management has been divided into two departments: Engineering & Public Works and Community Development**** Administrative Services was amended for 2017 to include 2 FTE Information Technology employees added under the Department. 60 10
260 210 160 110
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Full Time Equivalent Employees
Total Full Time Equivalent Employees
Packet Page 216

CITY OF SEASIDE

CAPITAL ASSETS AND OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS

OPERATING INFORMATION
SCHEDULE 18
(155)
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Public Safety 2,421 2,585 2,572 2,852 2,969 2,986 3,068 3,288 (b) 2945 3,013 Fire Vehicles 13 12 14 14 14 12 12 12 7 11
Police calls 48,795 47,475 47,024 48,606 48,349 35,645 41,580 39,122 41,590 29,732 Police Vehicles 34 39 46 39 37 35 36 37 36 40
Public Works Streets miles 66 66 86 92 92 92 92 92 92 * 92 Streetlights 334 334 652 652 652 652 652 652 652 * 652
Traffic Signals 19 19 19 19 19 19 20 20 22 * 22
Public Works Vehicles 26 23 25 23 24 25 29 42 44 * 44Dog Park (a) 0 0 1 1 1 1 1 1 1 *1Pre school - children served 366 532 483 680 440 418 434 451 (c) 300 (c) 278 Parks 24 24 24 24 24 24 24 21 21 21Recreation programs - persons served 3,597 3,190 3,547 5,243 4,971 3,024 5,466 5,801 11,274 10,478 Senior Center - meals served 3,291 3,475 4,083 4,538 3,596 3,381 3,942 3,966 2,232 2,453 2,330 2,835 2,330 2,542 3,216 8,512 8,640 8,589 (c) 7963 (c) 8,213 * Numbers not updated for 2020-2021
(a) Moved from Parks to Public Works(b) Reduction in fire calls of 9.6% March - June 2020 (COVID-19 Shelter In Place).(c) Reduction in programs due to COVID-19 restrictions.

Source: City of Seaside
Pool Attendance
Facility
Fire calls
Parks and Recreation
Packet Page 217

CITY OF SEASIDE

MISCELLANEOUS STATISTICS
JUNE 30, 2021

OPERATING INFORMATION
SCHEDULE 19
(156)
Date of Incorporation: October 13, 1954
Form of Government: Council/City Manager
City Council Members: Mayor and Four Council Members
City Boards, Commissions and Committees:

Land Area in square miles: 9.375
Demographics:

Total Population 34,566
Male 17,574 50.8%
Female 16,992 49.2%
Age 0 - 15 7,335 21.2%
Age 15 - 25 5,048 14.6%
Age 25 - 35 6,098 17.6%
Age 35 - 45 4,411 12.8%
Age 45 - 65 7,871 22.8%
Age over 65 3,803 11.0%
Median Age 32.8
White 11,185 32.36%
Hispanic 14,690 42.50%
Black or African American 2,348 6.79%
Asian 3,352 9.70%
American Indian and Alaska Native 61 0.18%
Native Hawaiian and Other Pacific Islander 878 2.54%
Other 88 0.25%
2 or More Races 1,964 5.68%
34,566 100.0%
Housing Characteristics
Total housing units 11,749
Population
Occupied housing units 10,823 100% by housing type:

Owner-occupied 4,366 40.3% 12,812
Renter-occupied 6,457 59.7% 20,438
33,250
Source: California State Department of Finance, American Community Survey 2019; U. S. Census Bureau, 2020 Demographic Profile Data
Planning, Art and History, Board of Architectural Review, Parks and Recreation, Neighborhood Improvement, Community
Development Advisory, Economic Advisory, Senior, Homeless, Environmental, Traffic Advisory, Zoning Administrator, Blue Ribbon Panel
Packet Page 218
CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.

CliftonLarsonAllen LLP
CLAconnect.com
To the Honorable Mayor,
Members of the City Council
City of Seaside, California
We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Seaside, California (City) as of and for the year ended June 30, 2021 and have issued our report thereon dated February 24, 2022. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, as well as certain information related to the planned scope and timing of our audit. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practices
Accounting Policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Seaside are described in Note 1 to the financial statements.

As described in Note 1, the City changed accounting policies related to fiduciary activities by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities, in 2021.

Accordingly, beginning net position and fund balance have been restated, as described in Note 4G.

We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.

The most sensitive accounting estimates affecting the financial statements were:
 Management’s estimate of the claims liabilities is based on estimated claims cost detail reports obtained from experts.
 Management’s estimate of the other post-employment benefits (OPEB) liability is based on actuarial valuation reports obtained from experts.
 Management’s estimate of the net pension liability and related deferred inflows/outflows is based on actuarial valuation reports obtained from CalPERS and PARS.  Management’s estimate of the acquisition value of land transfers from Fort Ord Reuse Authority (FORA) are based on recent sales of similar parcels.

Packet Page 219
To the Honorable Mayor
Members of the City Council
City of Seaside

Page 2 ends

Seaside City CouncilMarch 15, 2022

Seaside City Council
March 15, 2022