A G E N D A
CITY OF SEASIDE REGULAR MEETING
CITY COUNCIL/SUCCESSOR 440 HARCOURT AVE (COUNCIL CHAMBER) AGENCY TO THE Thursday, January 18, 2024
REDEVELOPMENT AGENCY 5:00 PM
___________________________________________________________________________________ NOTICE: The City Council will hold its public meetings in person, with options for viewing and listening virtually or telephonically, based on availability. ___________________________________________________________________________________ ___________________________________________________________________________________
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 view 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 listen 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, 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
2. ROLL CALL – ESTABLISHMENT OF QUORUM
Ian N. Oglesby
David R. Pacheco
Alexis Garcia-Arrazola
Rita Burks
Alex Miller
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
Packet Page 1
City Council REGULAR Meeting January 18, 2024 5:00 PM Agenda Page 2 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. SPAY NEUTER IMPERATIVE PROJECT "SNIP" BUS OPERATIONS UPDATE (LORA JAMES)
B. EVERYONE'S HARVEST SEASIDE CERTIFIED FARMER'S MARKET UPDATE (RECREATION DIRECTOR DAN MEEWIS)
C. PRESENTATION OF THE ANNUAL INDEPENDENT AUDITOR'S REPORT (FINANCE DIRECTOR VICTOR DAMIANI)
8. CONSENT AGENDA
A. APPROVE MINUTES FROM OCTOBER 5 AND DECEMBER 21, 2023 RECOMMENDATION: Approve minutes as presented in the agenda packet.
B. ACCEPT AND FILE THE FISCAL YEAR ENDING JUNE 30, 2023, ANNUAL
COMPREHENSIVE FINANCIAL REPORT, THE GOVERNANCE LETTER AND
THE GANN LIMIT REPORT
RECOMMENDATION: Receive, and accept the June 30, 2023, Annual Comprehensive Financial Report, the Governance Letter and the Gann Limit Report for the City of Seaside.
C. APPROVE MAYOR'S YOUTH FUND CONTRIBUTION REQUEST FROM
SEASIDE HIGH SCHOOL BOYS SOCCER
RECOMMENDATION: Approve a request from Seaside High School Boys Soccer Program for a donation of $3,000.00 from the Mayor's Youth Fund for the costs Packet Page 2
City Council REGULAR Meeting January 18, 2024 5:00 PM Agenda Page 3 associated with soccer balls, cones, soccer pinnies, practice t-shirt, and reusable gator water bottles.
D. APPROVE A CO-SPONSORSHIP AND FEE WAIVER REQUEST FROM DELTA SIGMA THETA SORORITY, INC. FOR USE OF OLDEMEYER CENTER FOR TWO COMMUNITY EVENTS IN 2024: A HEALTH CONFERENCE AND THE
ANNUAL JABBERWOCK PAGEANT & YOUTH ON PARADE EVENT
RECOMMENDATION: Approve a request from the Delta Sigma Theta Sorority for co-sponsorship and a fee waiver for the costs associated with their Annual Health Conference that will be on Saturday, March 16, 2024, and the annual Jabberwock Pageant & Youth on Parade event that will be on Saturday, April 27, 2024, in the amount of $1,907.75.
E. APPROVE A FEE WAIVER REQUEST FROM MONTEREY PENINSULA NAACP
FOR COSTS ASSOCIATED WITH THEIR COMMUNITY BUILDING EVENT WITH LOCAL POLICE CHIEFS "BREAKFAST WITH THE BADGES"
RECOMMENDATION: Approve the fee waiver request from the Monterey Peninsula NAACP for the use of Seaside Community Center, Soper Large Room to hold their Community Building Event with local police chiefs "Breakfast with the Badges" in the amount of $856.80, the Organization to provide the City with the non-refundable portion of the deposit of $52.20.
F. APPROVE ENVIRONMENTAL SERVICES COOPERATIVE AGREEMENT (ESCA) QUARTERLY REPORT
RECOMMENDATION: Approve report covering activities from September through December 2023, as presented in the agenda packet.
G. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AN AMENDMENT TO THE PROFESSIONAL SERVICE AGREEMENT WITH
WALLACE GROUP FOR ADDITIONAL CONSTRUCTION MANAGEMENT AND
INSPECTION SERVICES FOR FERNANDO PARK IMPROVEMENTS PROJECT FOR AN AMOUNT NOT TO EXCEED $16,516.00
RECOMMENDATION: Adopt a resolution authorizing the City Manager to execute an amendment to the professional service agreement with Wallace Group for an amount not to exceed $16,516.00 to provide additional construction management and inspection services for the Fernando Park Improvements Project.
9. PUBLIC HEARING
A. AMEND SEASIDE MUNICIPAL CODE CHAPTER 8.32 FIREWORKS; ADDING SECTION 8.32.211 - CURFEW FOR USE OF SAFE AND SANE
FIREWORKS (FIRST READING, ROLL CALL VOTE)
RECOMMENDATION: Pass to print an ordinance amending the City of Seaside Municipal Code Chapter 8.32 fireworks; adding section 8.32.211 - Curfew for the use of Safe and Sane Fireworks.
Packet Page 3
City Council REGULAR Meeting January 18, 2024 5:00 PM Agenda Page 4
10. BUSINESS ITEMS
A. ADOPT A RESOLUTION APPROVING THE APPLICATION FOR GRANT
FUNDS FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM FOR THE SAN PABLO PEDESTRIAN BRIDGE DEMOLITION AND
RECONSTRUCTION PROJECT
RECOMMENDATION: Adopt a resolution approving the application for grant funds from the Community Development Block Grant (CDBG) Program for San Pablo Pedestrian Bridge Demolition and Reconstruction Project.
B. ADOPT A RESOLUTION AUTHORIZING PG&E TO DONATE CITY OF SEASIDE "RULE 20A" WORK CREDITS IN THE AMOUNT OF $447,072.00
TO THE COUNTY OF MONTEREY FOR THE CARMEL VALLEY ROAD PHASE 3, RULE 20A UNDERGROUND UTILITY DISTRICT NO. 15
RECOMMENDATION: Adopt a resolution authorizing PG&E to donate City of Seaside Rule 20A work credits in the amount of $447,072 to the County of Monterey for the Carmel Valley Road Phase 3, Rule 20A Underground Utility District No. 15
11. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS
B. FOLLOW UP ON PREVIOUS REQUESTS
12. CITY ATTORNEY, CITY MANAGER, CITY COUNCIL AND MAYOR
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.
13. CLOSED SESSION
Pursuant to Government Code Section 54956 et seq., the City Council and Successor Agency to Redevelopment Agency may adjourn to a Closed Session to consider specific matters dealing with litigation, certain personnel matters, property negotiations or to confer with the City Attorney. Public comments on these items are taken after being read by the City Attorney. For the public record, please state your name.
A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54956.8
Property: The Property Commonly Referred to As Campus Town (Property bounded by Highway 1/1st Avenue, 7th Avenue, Lightfighter/Colonel Durham Street, and Gigling)
Packet Page 4
City Council REGULAR Meeting January 18, 2024 5:00 PM Agenda Page 5 Agency Negotiators: City Manager, et. al
Negotiating Parties: KBB Seaside Venture, et. al. and City of Seaside Under Negotiation: Price, terms of payment or both
B. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9 - EXISTING LITIGATION
Monterey County Superior Court
Case No: 23PR000490
Case Name: In Re Clyde and Claudia Marie White Trust dated September 20, 2011 C. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE 54956.9
Potential Litigation (2 MATTERS)
14. ADJOURNMENT
Next Regularly Scheduled Meeting:
February 1, 2024
5:00 p.m.
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.
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DRAFT MINUTES
CITY OF SEASIDE REGULAR MEETING
CITY COUNCIL/ SUCCESSOR 440 HARCOURT AVE
AGENCY TO THE Thursday, October 5, 2023
REDEVELOPMENT AGENCY 5:00 PM
1. CALL TO ORDER
Mayor/Chair Oglesby called the meeting to order at 5:00 p.m.
2. ROLL CALL – ESTABLISHMENT OF QUORUM
PRESENT: Oglesby, Pacheco, Garcia-Arrazola, Burks, Miller ABSENT: None
3. INVOCATION AND PLEDGE OF ALLEGIANCE
A moment of silence was held for invocation. The pledge was led by Mayor Pro Tem/Vice Chair Pacheco.
4. REVIEW OF AGENDA
Council/Agency Member Garcia-Arrazola asked to close the meeting in honor of the recent passing of Seaside business owner of La Tortuga.
5. PUBLIC COMMENT
Chandler Owen, Peter Kaiser, Regina Mason, Kennision Brown, Mariam Smith, No name, Bobby Maxwell, No name, Susan Schavoni, Denise Madden, Pastor Kenneth Murray
6. PUBLIC AGENCY COMMUNICATIONS
Alvin Edwards, Monterey Peninsula Water Management District, Division 1 announced a hearing scheduled on October 10 at 5:30 at Millbury Institute of International Studies in Monterey regarding Cal Am, and rate increases.
7. PRESENTATIONS
A. OAXACA BY THE SEA EVENTS FOLLOW UP AND DE-BRIEFING REPORT (RECREATION DIRECTOR DAN MEEWIS)
Art Coordinator Sandra Gray provided information regarding the art reception and Oaxaca art displayed in the Chamber. Recreation Director Dan Meewis – provided an overview of the activities held and their outcomes.
Community & Economic Development Director Jose Bazua provided details about the coordination of the Oaxaca business expo.
B. UPCOMING CITYWIDE EVENTS & COMMUNITY ANNOUNCEMENTS
Packet Page 6
Thursday, October 5, 2023 City Council REGULAR Meeting Page 2 (RECREATION DIRECTOR DAN MEEWIS)
Director Meewis provided a presentation and reviewed the following upcoming events:
• Seaside Fire Departments welcomes firefighter Chase Whitney (joined October 2, 2023)
• Seaside Certified Farmers Market – Every Thursday, 3pm-7pm at Laguna Grande Park
• City Hall and Library Parking Lot Repaving construction schedule, phase 2 began September 26. For A.D.A access, call 831-899-6885. • Seaside ADU Loan Program, www.ci.seaside.ca.us/805/adu-loan-program • Moview in the Park showing “Nightmare Before Christmas” at Laguna Grande Park on October 6 at 6pm
• Seaside Fire Department 2023 Open House, October 7 at 10am • Sarangsem Music Night Fest, October 7 at 5pm at Oldemeyer Center • Seaside’s 69th Birthday celebration, October 13 at Oldemeyer Center • Lincoln-Cunningham Park basketball court ribbon cutting, October 14 at 11am
• Harvest Festival at Pacchetti Dog Park, Saturday, October 21 at 11am – dog costume contest ($5.00 entry fee), judging begins at 1:00 p.m. • Pumpkin Plunge at Pattullo Swim Center, October 21 from 1:15 p.m. – 3:00 p.m. – free admission, $7 to plunge for a pumpkin
• Trunk-or-Treat, October 31 from 4:30 p.m. – 6:30 p.m. at City Hall Lawn • Halloween Bonzana, Oldemeyer Center, October 31 from 6 p.m. – 9 p.m. • Caltrans SR218 ADA Compliant Pedestrian Access Project, started September 11, 2023 and is expected to end in October/early November 2023
• CalFresh Food, enrollment assistance contact 831-899-6851, 831-899-6850 • Complimentary Childcare at City Council Meetings, contact Oldemeyer Center 48 hours in advance at 831-899-6800
• Family & Community Support Program, [email protected], 831- 899-6852, bit.ly/SeasideFCSP
• Community announcements: Friends of Seaside Parks Association Park Clean Ups on 10/7 at Farallones Park, 10/14 at Lincoln Cunningham Park, and 10/21 at Havana-Soliz Park; Monterey Bay F.C. vs. Orange County SC at 7pm “Breast Cancer Awareness Night”
• Follow us on social media: facebook.com/seasideca; Instagram:
@cityofseaside; X: @city_of_seaside
C. ECONOMIC DEVELOPMENT UPDATE (ECONOMIC DEVELOPMENT
DIRECTOR JOSE BAZUA)
Director Bazua provided a presentation and updated the Council on the relationships, projects in projects and the future of economic development in Seaside.
Mr. Bazua reviewed that he was able to visit with over 75 businesses including all the business on Broadway Ave, and Fremont Blvd, from Ord Grove to Hilby Packet Page 7
Thursday, October 5, 2023 City Council REGULAR Meeting Page 3 Avenues, all auto dealerships and hotels, which included meeting with management staff.
The projects in progress were reviewed including The Ascent Project (breaking ground November 2023), Grand Hyatt (breaking ground in 2024), Campus Town (building removal and site preparation for transfer 2023/2024), Seaside Market (breaking ground June 2024), and Fort Ord Courthouse (construction to begin June 2025).
The plans for the future included determining planning updates for Main Gate, increased parking and other programs to enhance West Broadway Urban Village (WBUV), and business development for WBUV.
8. CONSENT AGENDA
Items 8c (Peter Kaiser) was pulled from the Consent Agenda.
On motion by Mayor Pro Tem/Vice Chair Pacheco, and second by Council/Agency Member Garcia-Arrazola, and carried by the following vote, the City Council/Successor Agency moved to approve the consent agenda, with the exception of item 8C.
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
A. APPROVE THE PURCHASE OF A DRONE FOR POLICE DEPARTMENT IN ACCORDANCE WITH AB 481 FOR AN AMOUNT NOT TO EXCEED
$14,604.26
ACTION: APPROVED
B. APPROVE PROCLAMATION RECOGNIZING OCTOBER AS NATIONAL
DISABILITY EMPLOYMENT AWARENESS MONTH
ACTION: APPROVED
C. APPROVE PROCLAMATION RECOGNIZING SEPTEMBER 15 - OCTOBER 15
AS NATIONAL HISPANIC HERITAGE MONTH
PUBLIC COMMENT: Peter Kiser, Carla Lobo
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Garcia-Arrazola, and carried by the following vote, the City Council/Successor Agency moved to approve the proclamation recognizing National Hispanic Heritage Month.
Packet Page 8
Thursday, October 5, 2023 City Council REGULAR Meeting Page 4 RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: APPROVED
D. APPROVE PROCLAMATION RECOGNIZING OCTOBER AS NATIONAL
BREAST CANCER AWARENESS MONTH
ACTION: APPROVED
E. APPROVE PROCLAMATION RECOGNIZING OCTOBER AS DOMESTIC
VIOLENCE AWARENESS MONTH
ACTION: APPROVED
F. APPROVE PROCLAMATION DECLARING FREEDOM FROM WORKPLACE BULLYING WEEK FROM OCTOBER 15-21
ACTION: APPROVED
9. BUSINESS ITEMS
A. RECEIVE INFORMATION AND CONSIDER AN ORDINANCE RELATED TO
THE MANAGEMENT OF ABANDONED SHOPPING CARTS
Community & Economic Development Director Jose Bazua reviewed the elements of a Shopping cart ordinance should the Council proceed to consider an amendment to the municipal code. Director Bazua provided an overview of the on-going collaborations with Police, Building Safety and Public Works Departments, and their need for additional authority to work with private property owners in resolving the nuisance issue, pursue more punitive damages against business that do not have an abandoned cart prevention plan, and to analyze ordinances to finalize the most effective tactics.
The Council was asked to consider how abandoned shopping carts are reported, the removal process, proper business cart removal contact, and enforcement. The fiscal impact, impacts on city staff time, legal ramifications and cost were also presented.
PUBLIC COMMENT: Peter Kaiser, Karla Lobo
The Council provided feedback and asked for the item to return in 2 months and for the presentation to include an elaboration of the cost, process and operational Packet Page 9
Thursday, October 5, 2023 City Council REGULAR Meeting Page 5 logistics of the program.
B. FIREWORKS AFTER ACTION RECOMMENDATIONS FOR DISCUSSION
AND DIRECTION
Commander Justin Pascone provided a presentation that reviewed 68 citations that were issued for illegal fireworks and the recommendations for 2024; Fire Chief Gutierrez, and Commander Pascone responded to questions from the Council.
PUBLIC COMMENT: Regina Mason, Peter Kiser, Miraim Smith, Bobby Maxwell, Gwen Nash, Karla Lobo, Dinice Maiden, Dianne Nielson, Dennis Revel, Annalisa Mitchell, Ann Marie Pagan
The Council considered each recommendations and provided their vote of support for each item as follows in the table below. Staff will utilize the Council’s direction to draft an ordinance and bring it back for Council consideration at a future date.
Rita Burks (RM), Alexis Garcia-Arrazola (AGA), Alex Miller (AM), Ian N. Oglesby (INO), Dave Pacheco (DP).
1. Include Parking Enforcement team on 4th
Yes No
RB
DP
AGA
INO
AM
2. Increase number of drones deployed
Yes No
RB
DP
AGA
INO
AM
3. Recommend Safe and Sane zones within the City
Yes No
RB
DP
AM
AGA
INO
4. Pass out fliers to problematic areas earlier
Yes No
RB
DP
AM
Packet Page 10
Thursday, October 5, 2023 City Council REGULAR Meeting Page 6 AGA
INO
5. Increase educational outreach (Fire & Police)
Yes No
RB
DP
AGA
INO
AM
6. Recommend NO PARKING signs/curbs in Gen Jim Blvd
Yes No
RB
DP
AGA
INO
AM
7. Host community meeting to get community feedback
Yes No
RB
DP
INO
AM
AGA
8. End time for use of Safe and Sane – 10:00 p.m.
Yes No
RB
DP
INO
AM
AGA
9. Enhance Enforcement of Safe and Sane use after curfew Yes No
RB
DP
AGA
INO
AM
10. Sale of Safe & Sane only to City of Seaside Residents Yes No
RB
DP
AM
AGA
INO
11. Community Drone Show (community recommendation)
Yes No
RB
DP
AGA
AM
INO
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Thursday, October 5, 2023 City Council REGULAR Meeting Page 7
12. Discontinue sale of Safe and Sane on City property? Yes No Undecided
DP
AM
AGA
INO
RB
13. Buy back program
Yes No Undecided
RB
AGA
DP
INO
AM
10. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS
1. Consider fireworks measure for the November 5, 2024 general election (Miller)
2. Receive an update on the City’s climate action plan (Oglesby) B. FOLLOW UP ON PREVIOUS COUNCIL MEMBER REQUESTS
City Manager Fontes provided an update on the candaian geese study that is being conducted by Foster City, and the progress on the work concerning RV parking on private property.
11. CITY ATTORNEY, CITY MANAGER, CITY COUNCIL AND MAYOR COMMENTS
AND REPORTS ON COMMITTEE ASSIGNMENTS
Reports provided.
12. CLOSED SESSION
City Attorney Sheri Damon read the closed session items and did not expect any announcements. There were no comments from the public.
A. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9- EXISTING LITIGATION: MONTEREY COUNTY SUPERIOR COURT CASE 20CV003118, PEOPLE V. ARZADON, ETAL.
B. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE 54956.9
Potential Litigation (2 MATTERS)
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Thursday, October 5, 2023 City Council REGULAR Meeting Page 8 C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54956.8
Property: The Property Commonly Referred to As Campus Town (Property bounded by Highway 1/1st Avenue, 7th Avenue, Lightfighter/Colonel Durham Street, and Gigling)
Agency Negotiators: City Manager, et. al
Negotiating Parties: KBB Seaside Venture, et. al. and City of Seaside Under Negotiation: Price, terms of payment or both
13. ADJOURNMENT
With no further business, the meeting adjourned at 9:46 p.m.
Respectfully submitted,
_________________________ _________________________
Dominique L. Davis, City Clerk Ian N. Oglesby, Mayor
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DRAFT MINUTES
CITY OF SEASIDE REGULAR MEETING
CITY COUNCIL/ SUCCESSOR 440 HARCOURT AVE
AGENCY TO THE Thursday, December 21, 2023
REDEVELOPMENT AGENCY 5:00 PM
1. CALL TO ORDER
Mayor/Chair Oglesby called the meeting to order at 5:00 p.m.
2. ROLL CALL – ESTABLISHMENT OF QUORUM
PRESENT: BURKS, GARCIA-ARRAZOLA, MILLER, OGLESBY, PACHECO ABSENT: NONE
3. INVOCATION AND PLEDGE OF ALLEGIANCE
Pastor Ronald Britt, Greater Victory Temple Church of God in Christ, provided the invocation. The pledge was led by Council/Agency Member Burks.
4. REVIEW OF AGENDA
No changes.
5. PUBLIC COMMENT
Peter Kaiser, Veronica Miramontes, Speaker #3, Lisa, Sarah, Jacqueline Shaw, Speaker #7, Pastor Eugene B. Jones, Daisy, Michael, Karla Lobo, Alex, Tony Amarate, Walter Wire, Ann Marie Pagan, Sylvia Shih, Steven, Mailaka Velasquez, Ray Riordian, Pastor Harold Lusk, Sergio, Dennis Alexander, Pastor Ronald Britt, Wes Wyatt, Yvonne Thomas, Erin, Kira
6. PUBLIC AGENCY COMMUNICATIONS
None.
7. PRESENTATIONS
A. UPCOMING CITYWIDE EVENTS AND COMMUNITY ANNOUNCEMENTS (RECREATION DIRECTOR DAN MEEWIS)
Recreation Director Dan Meewis provided a presentation and reviewed the following upcoming events and responded to questions from the Council:
• Holiday Lights Contest
• Seaside Certified Farmers Market, every Thursday from 3-7pm at Laguna Grande Park
• Seaside Green – reminder to include food leftovers, pumpkins, boughs of holly and wreaths in organics cart.
• Seaside Green – Holiday tree collection by Greenwaste Recovery January 1-12 for Packet Page 14
Thursday, December 21, 2023 City Council REGULAR Meeting Page 2 single-family customers.
• Seaside PAL & Seaside Recreation – coaches needed, call 831-899-6820 or email [email protected]
• Black History Month Art Exhibit, registration is 11/27/23-12/24/23, exhibit is 1/7/24-2/29/24, and reception 1/26/21 from 7-8:30 p.m.
• Older Adults Program Presents New Year’s Eve Dance, December 31 at Oldemeyer Center with special guest Long Distance Flyers, doors open at 11 a.m. • Community Meeting Local Road Safety Plan, January 11, 2024, 6-7:30 p.m. • Caltrans SR218 ADA Compliant Pedestrian Access Project construction is on hold and will start again in January.
• CalFresh Food enrollment assistance with Family & Community Support Program, call 831-899-6851 or 831-899-6850 or email [email protected] or [email protected]
• Complimentary Childcare at City Council meetings, call 831-899-6800 48 hours notice
• Self-serve sandbag distribution at Fire Station, residents may take up to 10 sandbags per household.
• Family & Community Support Program, [email protected], 831-899- 6852, bit.ly/SEASIDEFCSP
• Friends of Seaside Parks Association Park Clean Ups, December 23 (Mescal Neil), December 30 (Beta)
Follow us on social media at facebook.com/Seaside CA; Instagram @cityofseaside; X @City_of_Seaside
B. WINTER STORMS EMERGENCY PREPARATION AND COORDINATION
PLAN REVIEW (FIRE CHIEF MARY GUTIERREZ & POLICE CHIEF NICK
BORGES)
Fire Chief Gutierrez provided the presentation and responded to questions from the Council.
8. CONSENT AGENDA
Item 8F was pulled by Sylvia Shih.
On motion by Council/Agency Member Miller and second by Council/Agency Member Garcia-Arrazola and carried by the following vote, the City Council/Successor Agency moved to approve the consent agenda, with the exception of item 8F.
RESULT: 5-0-0-0
AYES: BURKS, GARCIA-ARRAZOLA, MILLER, OGLESBY, PACHECO
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
A. APPROVE MINUTES FROM OCTOBER 19, NOVEMBER 2 AND DECEMBER 7, 2023
ACTION: APPROVED
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Thursday, December 21, 2023 City Council REGULAR Meeting Page 3 B. APPROVE AND FILE CITY CHECKS
ACTION: APPROVED & FILED
C. APPROVE AND FILE SUCCESSOR AGENCY CHECKS
ACTION: APPROVED & FILED
D. ADOPT A RESOLUTION APPROVING THE ANNUAL APPOINTMENTS TO LOCAL COMMITTEE ASSIGNMENTS FOR JANUARY 1, 2024, TO
DECEMBER 31, 2024
ACTION: ADOPTED
E. APPROVE CO-SPONSORSHIP AND FEE WAIVER FROM ACTION COUNCIL - BUILDING HEALTHY COMMUNITIES FOR COSTS ASSOCIATED WITH THE 2024 MARTIN LUTHER KING, JR. MARCH AND PROGRAM
ACTION: APPROVED
F. ADOPT A RESOLUTION APPROVING A PROFESSIONAL SERVICES
AGREEMENT WITH WHITSON ENGINEERS TO PERFORM DESIGN AND
DESIGN SERVICES DURING CONSTRUCTION FOR THE SAN PABLO
PEDESTRIAN BRIDGE DEMOLITION AND RECONSTRUCTION PROJECT FOR AN AMOUNT NOT TO EXCEED $556,000.00
PUBLIC COMMENT: Sylvia Shih, Karla Lobo
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Miller and carried by the following vote, the City Council/Successor Agency moved to adopt a resolution approving a professional services agreement with Whitson Engineers.
RESULT: 5-0-0-0
AYES: BURKS, GARCIA-ARRAZOLA, MILLER, OGLESBY, PACHECO
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
ACTION: ADOPTED
G. REVIEW OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
OF THE CITY OF SEASIDE RECOGNIZED OBLIGATION PAYMENT
SCHEDULE (ROPS) 24-25 FOR THE PERIOD JULY 1, 2024 – JUNE 30, 2025, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177
ACTION: ACCEPTED
H. ADOPT A RESOLUTION APPROPRIATING $22,000.00 FROM THE
GENERAL FUND TO THE DRAINAGE INLET IMPROVEMENTS PROJECT, Packet Page 16
Thursday, December 21, 2023 City Council REGULAR Meeting Page 4 AND APPROVING $22,000.00 IN ADDITIONAL CONTINGENCY TO THE
CONSTRUCTION AGREEMENT WITH MONTEREY PENINSULA
ENGINEERS, INC. FOR A TOTAL CONSTRUCTION AMOUNT THAT DOES NOT EXCEED $113,850.00
ACTION: ADOPTED
I. ADOPT A RESOLUTION CANCELING THE JANUARY 4, 2024 CITY
COUNCIL REGULAR MEETING
ACTION: ADOPTED
9. BUSINESS ITEMS
A. PROJECT OVERVIEW AND CONSTRUCTION SCHEDULE FOR THE GRAND
HYATT SEASIDE RESORT HOTEL ON THE SEASIDE RESORT PROJECT AREA
Rick Medina, Consulting Senior Planner, presented the project overview and responded to questions from the Council.
PUBLIC COMMENT: Dianne Nielson, Karla Lobo
The item was for information only.
10. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS
None.
B. FOLLOW UP ON PREVIOUS REQUESTS
None.
11. CITY ATTORNEY, CITY MANAGER, CITY COUNCIL AND MAYOR COMMENTS
AND REPORTS ON COMMITTEE ASSIGNMENTS
Reports provided.
12. ADJOURNMENT
With no further business, the meeting adjourned at 7:35 p.m.
Respectfully submitted,
_________________________ _________________________
Dominique L. Davis, City Clerk Ian N. Oglesby, Mayor
Packet Page 17
CITY OF SEASIDE
STAFF REPORT
Item No.: 8.B.
TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Victor Damiani, Finance Director
DATE: January 18, 2024
SUBJECT: ACCEPT AND FILE THE FISCAL YEAR ENDING JUNE 30, 2023,
ANNUAL COMPREHENSIVE FINANCIAL REPORT, THE
GOVERNANCE LETTER AND THE GANN LIMIT REPORT
RECOMMENDATION
Receive, and accept the June 30, 2023, 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 for the year ending June 30, 2023, 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 Gann Limit Report and the Governance Letter.
The firm of Maze and Associates, from Pleasant Hill, California performed the City’s audit for the year ending June 30, 2023. They will make a presentation at the January 18, 2024, meeting and will be available to answer questions.
The City's Finance Director will provide a brief presentation on the financial results presented in the Annual Comprehensive Financial Report.
FISCAL IMPACT
The cost of the annual audit is included in the annual budget.
ATTACHMENTS
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Item No. 8.B. Page 2 of 2
1. Annual Comprehensive Financial Report FY23
Reviewed for Submission to the City Council by:
_________________________________________
Jaime M. Fontes, City Manager
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Annual Comprehensive
Financial Report
For the Fiscal Year Ended June 30, 2023
Prepared by the Finance Department
City of Seaside, California
For the Fiscal Year Ended June 30, 2023
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CITY OF SEASIDE
Table of Contents
Year Ended June 30, 2023
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 ....................................................................................... 11 Management's Discussion and Analysis ....................................................................... 17 Basic Financials Statements:
Statement of Net Position ......................................................................................... 31 Statement of Activities .............................................................................................. 32 Fund Financial Statements:
Governmental Funds
Balance Sheet ..................................................................................................... 36 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position - Governmental Activities .......... 37 Statement of Revenues, Expenditures, and Changes in Fund Balances ............ 38 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government- Wide Statement of Activities - Governmental Activities ..................................... 39 Proprietary Funds
Statement of Fund Net Position .......................................................................... 40
Statement of Revenues, Expenses, and Changes in Fund Net Position ............ 41 Statement of Cash Flows .................................................................................... 42
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CITY OF SEASIDE
Table of Contents (Continued)
Year Ended June 30, 2023
Fiduciary Funds
Statement of Fiduciary Net Position .................................................................... 44 Statement of Changes in Fiduciary Net Position ................................................. 45 Notes to Basic Financial Statements ........................................................................ 49 Required Supplementary Information:
Budgetary Comparison Schedules
General Fund ......................................................................................................... 98 FORA Blight Removal-Bond Fund ....................................................................... 100 Schedule of Changes in the Net OPEB Liability and Related Ratios ...................... 101 Schedule of the City's Proportionate Share of the Net Pension Liability ................. 102 Schedule of Pension Contributions – Cost Sharing Plans ...................................... 103 Schedule of Changes in Net Pension Liability and Related Ratios – PARS ........... 104 Schedule of PARS Contributions ............................................................................ 106 Note to Required Supplementary Information ......................................................... 107 Supplementary Information:
Budgetary Comparison Schedule
Transportation Capital Projects Fund ................................................................... 110 Measure X Bond Fund ......................................................................................... 111 Nonmajor Governmental Funds
Fund Descriptions ................................................................................................ 115 Combining Balance Sheet .................................................................................... 121 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................................................................................ 128 Budgetary Comparison Schedules ....................................................................... 135 Packet Page 23
CITY OF SEASIDE
Table of Contents (Continued)
Year Ended June 30, 2023
Internal Service Funds
Fund Descriptions ................................................................................................ 159 Combining Statement of Net Position .................................................................. 160 Combining Statement of Revenues, Expenses, and Changes in Net Position .... 161 Combining Statement of Cash Flows ................................................................... 162 Custodial Funds
Combining Statement of Fiduciary Net Position ................................................... 164 Combining Statement of Changes in Fiduciary Net Position ............................... 165
STATISTICAL SECTION (UNAUDITED)
Statistical Section Overview .................................................................................... 168 Net Position by Component .................................................................................... 169 Changes in Net Position .......................................................................................... 170 Fund Balances – Governmental Funds ................................................................... 172 Changes in Fund Balances – Governmental Funds ............................................... 173 Governmental Funds – Revenues by Source ......................................................... 174 Governmental Funds – Taxes by Type ................................................................... 175 Assessed Valuation, Tax Rates, and Tax Levies .................................................... 176 Principal Property Tax Payers ................................................................................. 177 Top 25 Sales Tax Producers ................................................................................... 178 Direct and Overlapping Property Tax Rates ........................................................... 179 Property Tax Levies and Collections ....................................................................... 180 Legal Debt Margin Information ................................................................................ 181 Ratios of Total Debt Outstanding ............................................................................ 182 Direct and Overlapping Bonded Debt ..................................................................... 183 Demographic and Economic Statistics .................................................................... 184 Packet Page 24
CITY OF SEASIDE
Table of Contents (Continued)
Year Ended June 30, 2023
Principal Employers ................................................................................................ 185 Full Time Equivalent City Employees by Function .................................................. 186 Capital Assets and Operating Indicators by Function/Program .............................. 187 Miscellaneous Statistics .......................................................................................... 188 Packet Page 25
INTRODUCTORY SECTION
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FINANCE DEPARTMENT
440 Harcourt Avenue Telephone (831) 899-6718
Seaside, CA 93955 Fax (831) 394-8646
January 18, 2024
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, 2022 through June 30, 2023. 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, Maze and Associates, 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 2022-2023 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, dayto-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. 1 Packet Page 28
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.
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 throughout FY 2021-22 Throughout the pandemic the economy performed surprisingly well due to two prime factors; the development and distribution of a vaccine for the virus and federal stimulus dollars. California declared an end to the COVID-19 State of Emergency on February 28, 2023.
During the pandemic, the Federal Government passed and implemented five economic stimulus packages totaling approximately $6 trillion. The Federal Reserve also lowered the Federal Funds rate to between 0% and .25%. In many ways the federal stimulus may have slowed the economic damage caused by the health and safety response to the pandemic and stabilized the economy. On the other hand, the vigorous amounts of stimulus coupled with supply chain bottlenecks appear to have contributed to rising inflation.
Late in 2021 and early in 2022, many economists believed inflation would be short lived and come as a result of supply chain bottlenecks and staffing shortages, which would recede with time. That prediction did not prove correct, as inflation remained unsustainably high throughout 2022 and much of 2023. Faced with sustained inflation, the Federal Reserve responded with increases to the Federal Funds Rate, which generally speaking has a cooling effect on inflation. Beginning March 17, 2022, the Federal Reserves raised rates eleven times from .25% to 5.5%. The 12-month increase in CPI (indicator of inflation) as of September 2022, as reported by the U.S. Bureau of Labor Statistics was 8.2%. It appears that rate increases have had the desired effect, with the increase in CPI dropping to 3.7% as of September 2023.
While this is certainly good news, the traditional target rate for inflation is 2%, which indicates we are still in a high inflationary period. At the local level, the City of Seaside unemployment rate increased from 3.1% in March of 2020 to 19.0% in April of 2020 and currently stands at 2.5% 2 Packet Page 29
While the risk of a recession has decreased somewhat, many economists still believe a recession is possible in the first half of 2024. It remains to be seen, if, how long, and how severe a potential recession will be or if the economy will make the so-called “soft landing”.
At the local level, the City of Seaside unemployment rate steadily decreased since reaching a high mark of
19.0% in April of 2020 and reaching a low point of 2.5% in September of 2022. As of September of 2023, that number has increased to 3.4%.
The City of Seaside unexpectedly experienced strong results in several business sectors throughout the pandemic, including Auto Sales, Online Sales, and Building and Construction Materials. Historically, sales tax from Auto Sales have accounted for approximately 41% of the City’s Sales Tax total and 16% of the General Fund revenue total. In a potential recession, revenue losses in this sector could have a substantial impact on the City’s finances.
Not all sectors of the local economy, however, fared as well. One major sector of Seaside’s local economy is based on tourism. Early in the pandemic, the local Hotel Tax (Transient Occupancy Tax) dropped off severely due to shelter in place orders. Beginning in June of 2021, however, this sector experienced some much-needed relief. TOT collections showed strong signs of recovery throughout the 2021 summer months and again in the 2022 and 2023 summer months. From a pandemic era low of $2.1 million in fiscal year 20-21, this sector ended fiscal year 22-23 at approximately $3.4 million. By way of comparison, fiscal year 18-19 (the most recent “non-pandemic” fiscal year) generated $3.4 million in hotel tax.
While entire sectors and larger businesses have performed strongly throughout the pandemic, many smaller businesses have struggled. Staffing shortages have been particularly difficult and rising pay rates are likely to prove challenging as well.
City staff will continue to monitor and report City financial health to the City Administration, City Council and Public, as well as monitoring the Federal Reserve ‘s and the Federal Government’s efforts to reduce inflation and avoid or lessen the impacts of a potential recession. Staff recommends that the City remain flexible should conditions require action as the year progresses. A clearer picture of the City’s financial outlook is likely to emerge at the mid-year budget review in early March of 2024.
STRATEGIC DIRECTION, MAJOR INITIATIVES AND PROJECTS
The City Council met with staff late 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 revised strategic plan was finalized in early 2023 and included in the City’s fiscal year 2023-24 budget document. The City’s ability to accomplish its strategic direction will lead to increased fiscal stability, well defined workloads for City staff, and enhanced services for the community.
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 strategic priorities for FY2022- 23 that included:
• Effective, Accessible Governance
• Vibrant Local Economy
• Diverse & Inclusive Community
• Enhanced Physical Infrastructure & Abundant Water Supply • Community Safety & Quality of Life
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During FY2022-23, 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.
Groundbreaking for the Seaside Grand Hyatt at the Bayonet and Blackhorse Golf Course is scheduled for February of 2024. The housing component of this project is underway and nearing completion. Additional projects, to include the Campus Town area for mixed-use development on the former Ft. Ord property, as well as the Main Gate project which will include a new Superior Courthouse of California. The Ascent mixeduse project on upper Broadway is scheduled to break ground in December of 2023. Completion of these projects will provide jobs, housing, resources, and revenue to the City of Seaside.
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.
The Capital Reserve is to be used to fund capital purchases or projects on an emergency basis. 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 pre2010 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 2023-24 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 2022-23 the legal level of budgetary control (i.e. the level at which expenditures cannot exceed the budgeted amount) was at 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. 4 Packet Page 31
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 annual comprehensive financial report for the fiscal year ended June 30, 2022. This was the fourth 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 annual comprehensive 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.
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
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Seaside
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
6 Packet Page 33
CITY OF SEASIDE
ORGANIZATIONAL CHART
Mayor &
Citizens of
Seaside
City Council
City Manager
City Attorney
Assistant City
Manager
City Clerk
Planning
Commission
Neighborhood
Improvement Commission
Recreation & Parks
Commission
Environmental Committee
Homeless Committee
Traffic Advisory Committee
Art and History
Commission
Community
Safety
Advisory
Commission
Commission on Jobs
Opportunities & Business
Fire
Police
Finance/
Information
Services
Community,
Housing &
Economic
Development
Public
Works/
Engineering
Recreation Human
Resources/
Risk Mgmt.
Building
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CITY COUNCIL
Ian Oglesby, Mayor
Dave Pacheco, Mayor Pro-Tempore
Alexis Garcia-Arrazola, Rita Burks, Alex Miller
ADMINISTRATIVE OFFICER
City Manager………………………………………………………………..……… Jaime Fontes
City Attorney ……………………………….………………………….………..….. Sheri Damon City Clerk .................................................................................................. Dominique Davis Finance Director….……………………………............................................... Victor Damiani Chief Building and Code Enforcement Officer..……..……………………………. David Little Chief of Police .................................................................................................. Nick Borges Community, Housing & Economic Development Director……………………..…..… Vacant Fire Chief .................................................................................................... Mary Gutierrez Human Resources Director/Risk Manager.............................................................. Vacant Public Works Director ….……..….……..…………………………………………. Nisha Patel Recreation Services Director ........................................................................Daniel Meewis 8 Packet Page 35
FINANCIAL SECTION
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Seaside, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Seaside, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 11 Packet Page 38
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 12 Packet Page 39
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 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 accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 13 Packet Page 40
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 1, 2023
14 Packet Page 41
MANAGEMENT’S DISCUSSION AND ANALYSIS
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CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
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, 2023. Please read this overview in conjunction with the basic financial statements and the accompanying notes to those financial statements.
FINANCIAL HIGHLIGHTS
Citywide
• The total net position of the City increased over the course of the fiscal year by $12.2 million to $192.2 million. The net position of governmental activities increased by $11.2 million, or approximately 7% from the previous year net position, and the net position of business-type activities increased by $1.0 million, or 11%.
• Total City revenues were $58.1 million in fiscal year 2022-2023, a decrease of $4.5 million or 7% from fiscal year 2021-2022.
• Total City expenses were $45.9 million in fiscal year 2022-2023, which was a decrease of $6.6 million or 13% from fiscal year 2021-2022.
Fund Basis
• The City’s General Fund reported a fund balance at June 30, 2023 of $44.8 million, an increase of $450 thousand or 1% from the prior year balance. Of the total fund balance, $10.1 million is in a non-spendable form, $3.2 million is restricted, $18.9 million is committed, $45 hundred is assigned, and $12.6 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, 28% of total fund balance.
• General Fund revenues, including transfers and other financing sources in were $49.8 million in fiscal year 2022-2023.
• Total General Fund expenditures, including transfers out, were $49.4 million in fiscal year 2022- 2023.
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).
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 17 Packet Page 44
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
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 custodial funds, which only report a statement of fiduciary assets and liabilities and are prepared using the economic resources 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, 2023, are the General Fund, the FORA Blight Removal Bond Fund, the Transportation Capital Projects Fund and the Measure X Bond Fund.
18 Packet Page 45
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
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, 2023, 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, 2023 are the Seaside County Sanitation District and the Watermaster Fund (Custodial) and the Successor Agency to the City’s Former Redevelopment Custodial 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. 19 Packet Page 46
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
Table 1
Government-Wide Financial Statements vs. Fund Financial Statements Grid
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, 2023, is $192.2 million, an increase of $12.2 million or 7% from the net position of the previous year. This change in net position is driven in part by an increase of $2.8 million in taxes collected. Tax collections, particularly in the area of sales taxes are beginning to flatten but still showed strong results for FY 2022-2023. Sales tax collections move in tandem with inflation. Additionally, the City saw decreases in expense categories including $4.7 million in public safety expenses, $2.5 million in Community Development expenses, and $2.0 million in Public Works expenses. The year over year changes were driven largely by pension expense which is a non-cash, accrual based expense. CalPERS investment returns as well as a reduction of the discount rate caused the calculation of the City’s pension expense to swing widely on a year over year basis.
Although the net pension liability increased by $26 millipm due to the discount rate reduction from
7.15% to 6.9%, the CalPERS accounting valuation for the Measurement date of June 30, 2022 was based on the actuarial valuation of June 30, 2021, three years in arrears, resulting a much higher deferred outflow and a much lower deferred income for the measurement date 6/30/22. The net impact to the City was a positive overall change comparing with fiscal year 2022, resulting in negative net pension expenses. Pension expense decreased from $11.5 million in fiscal year 2021-2022 to a Governmental
Fund
Proprietary
Fund
Fiduciary
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
Flow s
1) Statement of Fiduciary
Assets and Liabilities
2) Statement of Changes
in Net Position
• Accounting Basis
• Measurement Focus
• Accrual
• Economic Resources
• Modified Accrual
• Current Financial Resources
• Accrual
• Economic Resources
• Accrual
• Economic Resources (no
economic focus
for agency funds)
Asset and Liability
Recognition
All short- term and long- term
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.
All short- term and long- term
capital assets and liabilities.
- Includes infrastructure and
long- term debt.
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.
All current year's revenues and
expenses, regardless of when
cash is received or paid.
Features
Government- Wide
Financial
Statements
Fund Financial Statements
20 Packet Page 47
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
Statement of Net Position (continued)
negative $2.2 million in fiscal year 2022-2023. The decrease in expense corresponds to the decrease in net position.
The City’s net investment in capital assets of $183.5 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 $6.9 million reflects current year depreciation expense less additions to capital assets during the 2022-2023 fiscal year.
Table 2
Net Position
(in thousands, rounded)
Statement of Activities
2023 2022 2023 2022 2023 2022
Assets:
Current and Other Assets $ 80,585 $ 84,069 -$ 5,127 $ 1,102 $ 75,458 $ 85,171 Capital Assets 183,450 176,573 18,951 11,551 202,401 188,124 Total Assets 264,035 260,642 13,824 12,653 277,859 273,295 Deferred Outflow s of Resources
Deferred Outflows - Pension 23,465 10,718 242 55 23,707 10,773 Deferred Outflows - OPEB 660 1,406 - - 660 1,406
Total Deferred Outflow of Resources 24,125 12,124 242 55 24,367 12,179 Liabilities:
Long-Term Liabilities 89,627 63,806 3,531 3,260 93,158 67,066 Other Liabilities 3,569 3,975 154 146 3,723 4,121
Total Liabilities 93,196 67,781 3,685 3,406 96,881 71,187 Deferred Inflow s of Resources:
Deferred Inflows - Pension 5,719 25,836 56 13 5,775 25,849 Deferred Inflows - OPEB 1,460 2406 0 - 1,460 2,406
Leases related 5917 6,020 0 - 5,917 6,020
Total Deferred Inflow of Resources 13,096 34,262 56 13 13,152 34,275 Net Position:
Net Investment in Capital Assets 166,931 159,995 16,056 8,537 182,987 168,532 Restricted 19,285 20,625 574 568 19,859 21,193
Unrestricted (4,348) (9,897) (6,305) 184 (10,653) (9,713) Total Net Position $ 181,868 $ 170,723 $ 10,325 $ 9,289 $ 192,193 $ 180,012 Governmental Activities Business-Type Activities Total
21 Packet Page 48
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
Statement of Activities
Total City-wide program revenue and general revenue during 2022-2023 was $58.1 million. Total Citywide expenses were $45.9 million. Revenues exceeded expenses by $12.2 million.
Table 3
Changes in Net Position
(in thousands, rounded)
Table 3
Changes in Net Position
(in thousands, rounded)
Governmental Activities Business-Type Activities
2023 2022 2023 2022 2023 2022
Revenues:
Program Revenues:
Charges for Services 5,978 $ 5,803 $ 1,419 $ 1,608 $ 7,397 $ 7,411 Operating Grants 4,280 12,408 - - 4,280 12,408
Capital Grants 1,322 1321 - - 1,322 1,321
General Revenues:
Taxes 44,317 41,501 - - 44,317 41,501
Use of Money and Property 956 104 (237) -221 719 -117
Other Revenues 102 35 0 36 102 71
Total Revenues 56,955 61,172 1,182 1,423 58,137 62,595
Expenses:
General Government 4,072 2,276 - - 4,072 2,276
Public Safety 21,559 26,278 - - 21,559 26,278
Recreation 7,030 6,314 - - 7,030 6,314
Public Works 4,647 6,702 - - 4,647 6,702
Community Development 6,192 8,738 - - 6,192 8,738
Enterprise Operations - - 1,646 1,064 1,646 1,064
Interest and Fiscal Charges 810 1210 - - 810 1210
Total Expenses 44,310 51,518 1,646 1,064 45,956 52,582
Transfers (1,500) - 1,500 - - -
Change in Net Position 11,145 9,654 1,036 359 12,181 10,013 Net Position - Beginning Year 170,723 161,069 9,289 180,012 8,930 169,999 Net Position - End of Year $ 181,868 $ 170,723 $ 10,325 $ 9,289 $ 192,193 $ 180,012 Total
Governmental Activities – In the 2022-2023 fiscal year, City revenues for governmental activities exceeded program expenses by $11.2 million. The largest expense category was Public Safety totaling $21.6 million or 49%. This is a decrease from the prior year of about $4.7 million. Recreation expenses were $7.0 million or 16% of total City governmental expenses, an increase of 11% from the previous year. Community Development totaled $6.2 million or 14% of total expenses. Overall, expenses decreased $7.2 million. CalPERS investment returns caused the calculation of the City’s pension expense to swing widely on a year over year basis from $11.5 million in fiscal year 2021-2022 to a negative $2.2 million in fiscal year 2022-2023.
22 Packet Page 49
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
Statement of Activities (continued)
Business-Type Activities – Revenues for business-type activities exceeded expenses by $1.0 million driven primarily by a one-time transfer of funds from the general fund to the water fund of $1.5 million for design of a new water well. Expenses increased by $600 thousand due to design work for a new well in the Water Enterprise fund.
FUND 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, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of June 30, 2023, the City’s governmental funds have a combined ending fund balance of $68.0 million. This is a decrease of $2.8 million over the prior fiscal year.
Major Governmental Funds
• General Fund: Total General Fund revenues, excluding transfers, were $48.3 million, which was $4.8 million less than the original budget primarily due to a budget line item for one-time land sales in the amount of $9 million, which did not occur. Other than the land sale that did not occur, all other revenue sources exceeded budget by $4.2 million. Expenditures were $44.3 million, excluding transfers, compared to the original budget of $48.9 million. Net other financing sources and uses of financing total $3.6 million. The General Fund fund balance increased by $450 thousand to $44.8 million during 2022-2023. This is an increase of 1%. • 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. Work began in fiscal year 2021-22. Fiscal year 2022-23 expenditures were $1.3 million and the year-end fund balance was $4.9 million. • Transportation Capital Projects Fund: Project expenditures for fiscal year 2022-23 were $2.9 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 $403 thousand. • 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 2022-23, project costs were $1.2 million and bond payment was $643 thousand. Fund balance at fiscal year-end was negative $2 thousand. Bond proceeds are fully expended and going forward this fund will only account for the bond repayment. 23 Packet Page 50
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
Proprietary Funds
As of June 30, 2023, the City’s proprietary funds net position is $12.0 million; unrestricted net position is negative $4.9 million. The balance of net investment in capital assets is $16.2 million. The most significant capital asset is the Golf Course; the value of the Golf Course is $7.5 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 $1.1 million, primarily due to a one-time transfer of funds from the general fund to the water fund of $1.5 million for design of a new water well. Furthermore, revenue increases in the Water Fund coupled with decreases in expenses led to a positive operating result of approximately $200 thousand. Depreciation expense is the primary cause of the $45 thousand 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, 2023, net capital assets of the governmental activities totaled $183.5 million and the net capital assets of the business-type activities totaled $19.0 million. Overall the City’s capital assets increased by $14.3 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 increase in capital assets is due to purchases and construction of new capital assets outpacing depreciation. In fiscal year 2022-23, the City purchased real property in the amount of $3 million, a street sweeper in the amount of $400 thousand and an intangible water right credit of $7.5 million.
Additionally, capital projects in process increased by $1.7 million and completed improvements to existing assets increased by $3.5 million. Depreciation expense related to existing assets was approximately $3.5 million.
Table 4
Capital Assets
(in thousands, rounded)
2023 2022 2023 2022 2023 2022
Land $ 123,808 $ 120,761 $ 8,540 $ 8,540 $132,348 $ 129,301 Construction in Progress 3,250 1,565 - - 3,250 1,565
Intangible Assets 4,252 10,767 7,563 - 11,815 10,767
Structures and Improvements 21,880 18,447 4,226 4,201 26,106 22,648 Equipment and Vehicles 15,423 14,914 272 239 15,695 15,153 Intangible Assets 8,023 - - - 8,023 -
Infrastructure 94,156 94,156 2,512 2,496 96,668 96,652
Total Assets 270,792 260,610 23,113 15,476 293,905 276,086 Less: Accumulated Depreciation (87,342) (84,037) (4,162) (3,925) (91,504) (87,962) Net Capital Assets $ 183,450 $ 176,573 $ 18,951 $ 11,551 $ 202,401 $ 188,124 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
24 Packet Page 51
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
LONG-TERM DEBT
Debt of the governmental activities was approximately $18.6 million as of June 30, 2023, flat as compared to the prior year. Bonds payable decreased according to set re-payment schedules. Capital leases increased with the lease of a several new fleet vehicles including a street sweeper. Business type debt was approximately $2.9 million, also flat as compared to the prior fiscal year and only indicating a reduction due to re-payment of bonds.
Table 5
Long-Term Debt
(in thousands, rounded)
2023 2022 2023 2022 2023 2022
Bonds Payable $ 16,034 $ 17,183 $ 2,895 $ 3,013 $ 18,929 $ 20,196 Capital Leases 2,600 1,510 0 1 2,600 1,511
Net LongTerm Debt $ 18,634 $ 18,693 $ 2,895 $ 3,014 $ 21,529 $ 21,707 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.
The fiscal year budget for 2022-2023 was adopted in June of 2022. The 2022-2023 General Fund original revenue budget was $53.1 million and the City collected $48.3 million. The original revenue 25 Packet Page 52
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
budget included $9 million in one-time land sales, which did not occur. When excluding the budgeted revenue for one-time land sales, the city exceeded budget by approximately $4.2 million across all other revenue categories. The strong results are primarily attributable to continued increases of receipts for property taxes and robust sales tax collections. The housing market has remained elevated with housing sales driving valuations higher citywide. Sales taxes have increased in tandem with inflation.
The City’s revised expenditure budget was $48.9 million. Actual expenditures were less than the final budget by $4.7 million or 9.6%. The largest savings were from personnel costs ($2.8 million) as the City continued to rebuild its workforce after COVID-19 pandemic era layoffs.
The fiscal year 2022-2023, excluding one-time land sales, originally showed a decrease in fund balance of $4.2 million. Actual results however showed a $450 thousand increase in fund balance.
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 throughout FY 2021-22 Throughout the pandemic the economy performed surprisingly well due to two prime factors; the development and distribution of a vaccine for the virus and federal stimulus dollars. California declared an end to the COVID-19 State of Emergency on February 28, 2023.
Hdl (The City’s revenue enhancement consultant) reports the national economy grew 2.5% in FY22-23, and projects it will remain flat in FY 23-24. FY 24-25 is expected to slow further to 1.2%. California’s unemployment rate is expected to remain low at 4.7% in FY 23-24 before climbing slightly to 5.2% in FY 24-25, whereas Statewide Sales & Use Tax growth is expected to turn negative in FY 23-24 at -
0.6% before swinging back positive in FY 24-25 at 2.1%.
Positive local economic factors for fiscal year 2023-2024 include property tax collections that are expected to remain elevated and perhaps grow as much as 5%. Hotels and Short-term rentals, with an adopted twelve percent (12%) transient occupancy tax (TOT), have recovered to pre-pandemic levels and continue to grow.
Sectors that will likely continue to plateau or decline include cannabis tax and auto sales. 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 (four 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 plateaued and then declined in fiscal year 2022-23. In fiscal year 2022-23, two cannabis retailers closed their doors. Auto sales have decline slightly from pandemic era highs and may decline further as competition for slowing sales may push prices lower.
Over the next several years, active economic development strategies are expected to bring growth and development that will improve revenue collections. In addition, the 2023-2024 budget includes continuation of the significant road repair program started in FY 2019-20 as well as a new program for “hot spot” repairs. 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 2021-22 fiscal year realized an increase in charges for services of over $238 thousand or 24%. The Utility’s final approved rate increase was implemented in January of 2022. The Utility has scheduled a new rate study for FY23-24. 26 Packet Page 53
CITY OF SEASIDE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023
Fiscal year 2023-24 economic indicators show continued growth, although a slowdown (at best) or a recession (at worst) is possible. Still, the city faces the following headwinds in the near term:
• Inflation has cooled but remains above the traditional 2% target • High costs of goods and services due to inflation will drive city expenditures higher • CalPERS unfunded liabilities continue to grow
• Possibility of recession
• Continuing possibility of federal government shutdown • Geopolitical unrest
Despite some headwinds, the FY2023-24 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 past few years indicate the City will likely be able to maintain its reserves in the fiscal year 2024-25 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, 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]. 27 Packet Page 54
Packet Page 55
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Packet Page 56
Packet Page 57
CITY OF SEASIDE
STATEMENT OF NET POSITION
June 30, 2023
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 50,512,474 $ 1,893,115 $ 52,405,589 $ Restricted Cash and Investments 3,238,833 573,939 3,812,772 Cash with Fiscal Agents 1,028,776 - 1,028,776
Accounts Receivable 5,242,597 89,823 5,332,420
Deposits with Others 112 - 112
Due from Other Governments 2,175,379 - 2,175,379
Prepaid Assets - - -
Internal balances 7,683,579 (7,683,579) -
Loans Receivable 1,598,523 - 1,598,523
Loans receivable from Successor Agency 2,333,431 - 2,333,431 Land Held for Resale 658,068 - 658,068
Leases receivable 6,113,538 - 6,113,538
Capital Assets:
Nondepreciable 131,309,719 16,103,317 147,413,036
Depreciable, Net 52,140,301 2,847,566 54,987,867
Total Assets 264,035,330 13,824,181 277,859,511
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - Pension 23,465,200 241,577 23,706,777 Deferred Outflows - OPEB 659,809 - 659,809
Total Deferred Outflows of Resources 24,125,009 241,577 24,366,586
LIABILITIES
Accounts payable 2,866,365 51,761 2,918,126
Salaries and Benefits Payable 418,442 5,766 424,208
Due to Primary Government - - -
Interest Payable 128,316 93,796 222,112
Deposits from Others 145,616 3,042 148,658
Other Liabilities 10,060 - 10,060
Unearned Revenue - - -
Noncurrent Liabilities:
Due within One Year 1,853,400 131,670 1,985,070
Due in More than One Year 19,423,471 2,777,888 22,201,359 Total OPEB Liability:
Due in More than One Year 9,278,637 - 9,278,637
Net Pension Liability:
Due in More than One Year 59,071,710 621,292 59,693,002 Total Liabilities 93,196,017 3,685,215 96,881,232
DEFERRED INFLOWS OF RESOURCES
Leases related 5,917,279 - 5,917,279
Deferred Inflows - Pension 5,718,720 55,645 5,774,365
Deferred Inflows - OPEB 1,460,363 - 1,460,363
Total Deferred Inflows of Resources 13,096,362 55,645 13,152,007
NET POSITION
Net Investment in Capital Assets 166,930,564 16,055,543 182,986,107 Restricted for:
Community Services 1,562,941 - 1,562,941
Community Development 12,625,851 - 12,625,851
Public Safety 4,293,502 - 4,293,502
Public Works (508,030) - (508,030)
Recreation 159,891 - 159,891
Other Purposes 1,150,885 573,939 1,724,824
Unrestricted (4,347,644) (6,304,584) (10,652,228)
Total Net Position $ 181,867,960 $ 10,324,898 $ 192,192,858 See accompanying Notes to the Basic Financial Statements. 31 Packet Page 58
Fees, Fines Operating Capital
and Charges Grants and Grants and
Functions/Programs Expenses for Services Contributions Contributions Primary Government:
Governmental activities:
General Government $ 4,072,018 $ 1,018,195 $ 508,934 $ - Public Safety 21,560,075 294,619 406,406 47,913
Recreation 7,030,452 - - -
Public Works 4,646,737 2,830,239 998,054 1,273,993
Community Development 6,191,622 1,834,765 2,366,169 -
Debt Service: - - - -
Interest and Fiscal Charges 808,739 - - -
Total Governmental Activities 44,309,643 5,977,818 4,279,563 1,321,906 Business-Type activities:
Water Fund 1,477,751 1,079,871 - -
Golf Fund 167,970 338,763 - -
Total Business-Type Activities 1,645,721 1,418,634 - -
Total Primary Government $ 45,955,364 $ 7,396,452 $ 4,279,563 $ 1,321,906 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
Net Position - End of Year
See accompanying Notes to the Basic Financial Statements.
Program Revenues
CITY OF SEASIDE
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30,2023
32 Packet Page 59
Governmental Business-type
Activities Activities Total
$ (2,544,889) $ - $ (2,544,889)
(20,811,137) - (20,811,137)
(7,030,452) - (7,030,452)
455,549 - 455,549
(1,990,688) - (1,990,688)
- - -
(808,739) - (808,739)
(32,730,356) - (32,730,356)
- (397,880) (397,880)
- 170,793 170,793
- (227,087) (227,087)
$ (32,730,356) $ (227,087) $ (32,957,443)
$ 21,778,926 $ - $ 21,778,926
798,015 - 798,015
4,129,418 - 4,129,418
1,928,741 - 1,928,741
3,107,260 - 3,107,260
798,448 - 798,448
10,807,903 - 10,807,903
967,985 - 967,985
955,931 (236,892) 719,039
102,320 (231) 102,089
(1,500,000) 1,500,000 -
43,874,947 1,262,877 45,137,824
11,144,591 1,035,790 12,180,381
170,723,369 9,289,108 180,012,477
$ 181,867,960 $ 10,324,898 $ 192,192,858
See accompanying Notes to the Basic Financial Statements.
Net Revenue (Expense)
and Changes in Net Position
33 Packet Page 60
Packet Page 61
BASIC FINANCIAL STATEMENTS
Fund Financial Statements
Packet Page 62
FORA Blight Transportation Other
Removal - Bond Capital Measure X Governmental
General Fund Projects Bond Fund Funds Total
ASSETS
Cash and Investments $ 27,313,731 $ 5,105,335 $ 197,794 $ - $ 15,289,663 $ 47,906,523 Restricted Cash and Investments 3,172,035 - - - 37,168 3,209,203 Cash with Fiscal Agent - - - 17 1,028,759 1,028,776
Accounts Receivable 3,414,193 - - - 1,780,976 5,195,169 Deposits with Others - - - - 112 112
have to do more work 1,722,331 - - - 453,048 2,175,379
Due form Other Funds 861,677 - - - - 861,677
Loans Receivable 191,182 - - - 1,407,341 1,598,523
Land Held for Resale - - - - 658,068 658,068
Leases receivable - - - - 6,113,538 6,113,538
Advances to Other Funds 7,607,246 - - - - 7,607,246
Loans receivable from Successor Agency 2,333,431 - - - - 2,333,431 Total Assets $ 46,615,826 $ 5,105,335 $ 197,794 $ 17 $ 26,768,673 $ 78,687,645 Liabilities:
Accounts Payable $ 1,215,007 $ 173,395 $ 601,412 $ - $ 805,270 $ 2,795,084 Accrued Salaries and Benefits 376,327 - - - 42,115 418,442 Deposits from Others 1,219 - - - 144,397 145,616
Other Liabilities - - - - 156 156
Due to Other Funds - - - 2,374 740,547 742,921
Unearned Revenue - - - - - -
Total Liabilities 1,592,553 173,395 601,412 2,374 1,732,485 4,102,219 Deferred Inflows of Resources:
Unavailable Revenue -
Intergovernmental 269,566 - - - 364,569 634,135
Leases related - - - - 5,917,279 5,917,279
Total Deferred inflows of resources 269,566 - - - 6,281,848 6,551,414 Fund Balances:
Nonspendable 10,131,859 - - - 112 10,131,971
Restricted 3,172,035 - - - 17,929,318 21,101,353
Committed 18,860,969 4,931,940 - - 1,865,997 25,658,906 Assigned 4,504 - - - - 4,504
Unassigned 12,584,340 - (403,618) (2,357) (1,041,087) 11,137,2780 Total Fund Balances 44,753,707 4,931,940 (403,618) (2,357) 18,754,340 68,034,012 Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances $ 46,615,826 $ 5,105,335 $ 197,794 $ 17 $ 26,768,673 $ 78,687,645 See accompanying Notes to the Basic Financial Statements.
CITY OF SEASIDE
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2023
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
36 Packet Page 63
CITY OF SEASIDE
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
GOVERNMENT-WIDE STATEMENT OF NET POSITION - GOVERNMENTAL ACTIVITIES JUNE 30, 2023
Fund Balance – Total Governmental Funds $ 68,034,012
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. 634,135
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. 183,224,638
Deferred outflows of resources reported in statement of net position. 24,125,009 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. 1,632,940 Deferred inflows of resources reported in statement of net position. (7,179,083) 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 (17,177,721)
Capital Leases (1,444,011)
Accrued Interest on Long-Term Debt (128,221)
Compensated Absences (1,503,391)
Total OPEB Liability (9,278,637)
Net Pension Liability (59,071,710)
Net Position of Governmental Activities $ 181,867,960
See accompanying Notes to the Basic Financial Statements. 37 Packet Page 64
CITY OF SEASIDE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
FORA Blight Transportation Other
Removal - Bond Capital Measure X Governmental
General Fund Projects Bond Fund Funds Total
REVENUES
Taxes $ 43,780,655 $ - $ - $ 1,273,993 - $ $ 45,054,648 Licenses and Permits 1,209,979 - - - 1,209,979 -
Fines and Penalties 176,582 - - - - 176,582
Use of Money and Property 71,333 726,251 - 87 544,110 1,341,781 Intergovernmental Revenue 618,558 - - 4,121,479 - 4,740,037 Charges for Services 749,461 - - 1,357,393 - 2,106,854
Other revenue 1,040,132 - - 1,264,842 - 2,304,974
Total Revenues 48,301,618 71,333 - 87 8,561,817 56,934,855
EXPENDITURES
Current:
General Government 3,598,345 - - - 3,598,345 -
Public Safety - 24,884,542 - - 291,330 25,175,872
Recreation 4,403,998 - - - 181,763 4,585,761
Public Works 4,364,424 1,288,506 - 5,669,292 - 11,322,222 Community Development 5,084,970 - - 114 2,691,683 7,776,767 Capital Outlay 1,508,132 2,922,057 - - 498,276 4,928,465 Debt Service:
Principal 346,274 - - 245,000 1,014,115 1,605,389
Interest and Fiscal Charges 58,805 - - 397,949 307,685 764,439 Total Expenditures 44,249,490 1,288,506 2,922,057 643,063 10,654,144 59,757,260
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES 4,052,128 (1,217,173) (2,922,057) (642,976) (2,092,327) (2,822,405)
OTHER FINANCING SOURCES
(USES)
Leases addition (Note 4E) 1,508,132 1,508,132
Transfers In - 2,559,755 - 643,072 4,310,186 7,513,013
Transfers Out (5,110,933) - - (1,238,875) (2,663,205) (9,013,013) Total Other Financing
Sources (Uses) - (3,602,801) 2,559,755 (595,803) 1,646,981 8,132
NET CHANGES IN FUND
BALANCES 449,327 (1,217,173) (362,302) (1,238,779) (445,346) (2,814,273) Fund Balances - Beginning of
Year, Restated 44,304,380 6,149,113 (41,316) 1,236,422 19,199,686 70,848,285
FUND BALANCES -
END OF YEAR $ 4,931,940 44,753,707 $ (403,618) $ (2,357) $ 18,754,340 $ 68,034,012 $ See accompanying Notes to the Basic Financial Statements. 38 Packet Page 65
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, 2023
Net Change to Fund Balance – Total Governmental Funds $ (2,814,273) 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 (net changes. (74,484)
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 10,280,551
Less: Current Year Depreciation (3,383,820) 6,896,731
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.
Leases (1,508,132)
Amortization of Premiums on Bonds 13,587
Principal Retirement 1,591,802
Interest expenses (44,300) 52,957
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 6,880,496 Change in Total OPEB Liability and Related Deferred Inflows/Outflows 452,301 Change in Compensated Absences (231,411) 7,101,386
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. (17,726) Change in Net Position of Governmental Activities $ 11,144,591 See accompanying Notes to the Basic Financial Statements. 39 Packet Page 66
Governmental
Business-Type Activities - Enterprise Funds Activities
Internal
Water Golf Services
Fund Fund Total Funds
ASSETS
Current Assets:
Cash and Investments $ 1,893,115 $ - $ 1,893,115 $ 2,605,951 Restricted Cash and Investments - 573,939 573,939 29,630 Accounts Receivable 89,823 - 89,823 47,428
Prepaid Assets - - - -
Total Current Assets 1,982,938 573,939 2,556,877 2,683,009 Capital Assets:
Nondepreciable 7,563,424 8,539,893 16,103,317 -
Depreciable 3,212,625 3,797,417 7,010,042 810,208
Less: Accumulated Depreciation (2,296,644) (1,865,832) (4,162,476) (584,826) Total Capital Assets, Net 8,479,405 10,471,478 18,950,883 225,382 Total Assets 10,462,343 11,045,417 21,507,760 2,908,391
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - Pension 241,577 - 241,577 -
Total Deferred Outflows of Resources 241,577 - 241,577 -
LIABILITIES
Current Liabilities:
Accounts Payable 51,761 - 51,761 71,281
Accrued Salaries and Benefits 5,766 - 5,766 9,904
Accrued Interest 41 93,755 93,796 95
Due to Other Funds - 76,333 76,333 42,423
Deposits from Others 3,042 - 3,042 -
Advances from Other Funds 7,607,246 - 7,607,246 -
Compensated Absences 1,670 - 1,670 12,584
Claims Payable - - - 73,515
Capital Leases - - - 12,724
Bonds Payable - 130,000 130,000 -
Total Current Liabilities 7,669,526 300,088 7,969,614 222,526 Long-Term Liabilities:
Compensated Absences 12,548 - 12,548 50,353
Claims Payable - - - 1,002,572
Bonds Payable - 2,765,340 2,765,340 -
Total Pension Liability 621,292 - 621,292 -
Total Long-Term Liabilities 633,840 2,765,340 3,399,180 1,052,925 Total Liabilities 8,303,366 3,065,428 11,368,794 1,275,451
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pension 55,645 - 55,645 -
Total Deferred Inflows of Resources 55,645 - 55,645 -
NET POSITION
Net investment in Capital Assets 8,479,405 7,576,138 16,055,543 212,658 Restricted for Debt Service - 573,939 573,939 -
Unrestricted (6,134,496) (170,088) (6,304,584) 1,420,282 Total Net Position $ 2,344,909 $ 7,979,989 $ 10,324,898 $ 1,632,940
CITY OF SEASIDE
STATEMENT OF FUND NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
See accompanying Notes to the Basic Financial Statements. 40 Packet Page 67
Governmental
ActivitiesInternal
Water Golf Service
Fund Fund Total Funds
OPERATING REVENUES
Changes for Services $ 1,079,871 $ 338,763 $ 1,418,634 $ 5,307,303 Other Revenues (231) - (231) (1,636)
Total Operating Revenues 1,079,640 338,763 1,418,403 5,305,667 OPERATING EXPENSES $
Salaries and Benefits 605,921 - 605,921 720,575
Services and Supplies 713,365 10,014 723,379 1,214,826
Insurance 23,300 - - 3,186,385
Utilities 53,265 - 53,265 109,186
Depreciation 81,900 155,088 236,988 63,597
Claims and Judgements - - - 48,203
Other Operating Expenses - 2,868 2,868 $ -
Total Operating Expenses 167,970 1,477,751 1,645,721 5,342,772 OPERATING INCOME (LOSS) 170,793 (398,111) (227,318) (37,105)
NONOPERATING REVENUES (EXPENSES)
Interest Income 24,651 21 24,672 20,400
Interest Expense (45,959) (215,605) (261,564) (1,021)
Total Nonoperating Revenues
(Expenses) (21,308) (215,584) (236,892) 19,379
INCOME (LOSS) BEFORE TRANSFERS (419,419) (44,791) (464,210) (17,726) Transfer in 1,500,000 - 1,500,000 -
Transfer Out - - - -
CHANGE IN NET POSITION 1,080,581 (44,791) 1,035,790 (17,726) Net Position - Beginning of Year 1,264,328 8,024,780 9,289,108 1,650,666 NET POSITION - END OF YEAR $ 7,979,989 2,344,909 $ 10,324,898 $ 1,632,940 $ See accompanying Notes to the Basic Financial Statements.
Business-Type Activities - Enterprise Funds
CITY OF SEASIDE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
41 Packet Page 68
Governmental
ActivitiesInternal
Water Golf Service
Fund Fund Total Funds
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash Receipts from Interfund Services
Provided - $ $ - $ 5,304,030 - $
Cash Receipts form Customers 1,008,689 338,763 1,347,452 - Cash Paid to Employees for Services (169,267) - (169,267) (708,911) Cash Paid to Suppliers for Goods
and Services (786,784) (23) (786,807) (4,639,680)
Net Cash Provided (Used) by
Operating Activities 52,638 338,740 391,378 (44,561)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Advances payments 7,531,246 - 7,531,246 -
Transfers from Other Funds - 1,500,000 1,500,000 42,423 Net Cash Provided (Used) by
Noncapital Financing Activities 9,031,246 - 9,031,246 42,423
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets (7,636,606) - (7,636,606) (49,273) Interest Paid (45,961) (215,603) (261,564) -
Principal Paid on Capital Debt (1,348) (117,434) (118,782) - Net Cash Provided (Used) by
Capital and Related Financing
Activities
(7,683,915) (333,037) (8,016,952) (49,273)
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest Received 24,651 21 24,672 19,379
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,424,620 5,724 1,430,344 (32,032) Cash and Cash Equivalents - Beginning
of Year 468,495 568,215 1,036,710 2,667,613
CASH AND CASH EQUIVALENTS -
END OF YEAR $ 573,939 1,893,115 $ 2,467,054 $ 2,635,581 $ See accompanying Notes to Basic Financial Statements.
Business-Type Activities - Enterprise Funds
CITY OF SEASIDE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
42 Packet Page 69
Governmental
ActivitiesInternal
Water Golf Service
Fund Fund Total Funds
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating Income (Loss) $ (398,111) $ 170,793 $ (227,318) $ (37,105) Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Depreciation 81,900 155,088 236,988 63,597
Changes in Assets, Deferred Inflows of
Resources, Liabilities, and Deferred
Outflows of Resources
(Increase) Decrease in:
Accounts Receivable 111,033 - 111,033 -
Prepaid Expenses 4,344 - 4,344 (1,637)
Increase (Decrease) in:
Accounts Payable 2,990 - 2,990 7,962
Accrued Salaries 4,802 - 4,802 4,333
Due to other funds - 12,859 12,859 -
Deposits 156 - 156 -
Compensated Absences 3,995 - 3,995 -
Net OPEB Liability - - - 7,331
Net Position Liability - 385,562 385,562 (89,042)
Net Cash Provided (Used) by
Operating Activities $ 52,638 $ 338,740 $ 391,378 $ (44,561) See accompanying Notes to the Basic Financial Statements.
Business-Type Activities - Enterprise Funds
CITY OF SEASIDE
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
43 Packet Page 70
CITY OF SEASIDE
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2023
Successor Agency
Custodial Private Purpose
Funds Trust Funds
ASSETS
Cash and Investments 3,778,580 $ 1,216,416 $
Accounts Receivable 834,212 4,000
Deposits with Others - 250,000
Other Assets - 112,085
Capital Assets:
Nondepreciable - 3,264,040
Depreciable, Net 0 12,917,818
Total Assets 4,612,792 17,764,359
LIABILITIES
Accounts Payable 69,125 1,412
Deposits Payable - 465
Unearned Revenue - 426,693
Advances from City of Seaside - 2,333,431
Long-term Debt: - -
Due within One Year - 120,000
Due in More than One Year - 1,917,190
Total Liabilities 69,125 4,799,191
NET POSITION
Restricted for: Individuals, Organizations, and
Other Governments 4,543,667 12,965,168
Total Net Position $ 4,543,667 $ 12,965,168
See accompanying Notes to the Basic Financial Statements. 44 Packet Page 71
CITY OF SEASIDE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Successor Agency
Custodial Private Purpose
Funds Trust Fund
ADDITIONS
Taxes and Assessments $ 640,022 $ 148,131
Use of Money and Property 47,119 16,155
Contributions from other local governments and developers 2,594,050 - Total Additions 3,281,191 164,286
DEDUCTIONS
Services expenses
Community Development - 43,793
Depreciation expenses - 627,595
Debt Service:
Interest - 22,527
Payments to other local governments and developers 2,043,601 Total Deductions 2,043,601 693,915
CHANGE IN NET POSITION 1,237,590 (529,629)
Net Position-Beginning, restated 3,306,077 13,494,797
NET POSITION - ENDED $ 4,543,667 $ 12,965,168
See accompanying Notes to the Basic Financial Statements. 45 Packet Page 72
Packet Page 73
NOTES TO BASIC FINANCIAL STATEMENTS
Packet Page 74
Packet Page 75
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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 statements to be misleading or incomplete. Financial accountability is defined as the 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 component units. The blended component units, although legally separate entities are, in data of the primary 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 Component 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. 49 Packet Page 76
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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.
50 Packet Page 77
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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:
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.
FORA Blight Removal – Bond Fund accounts for the removal of blight and remediation activity on former Ft. Ord properties within Seaside.
Transportation Capital Projects Fund accounts for revenues and expenditures for ongoing transportation capital projects.
Measure X Bond Fund accounts for revenues and expenditures related to the issuance of lease revenue bonds used to finance Measure X Road Improvements.
The City reported both major enterprise funds in the accompanying financial statements:
Water Fund accounts for resources used in operating and maintaining the Seaside Municipal Water System.
Golf Fund accounts for resources used in operating and maintaining the City’s golf courses. 51 Packet Page 78
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Additionally, the City reported the following fund types:
Internal Service Funds are used to account for the insurances, vehicle maintenance, and management information systems services provided to other departments of the City, or to other governments on a cost reimbursement basis.
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. The custodial funds account for monies held for the Seaside County Sanitation District and Watermaster to which the City provides accounting services. A Private-Purpose Trust Fund maintained by the City is the Successor Agency. The Successor Agency operates under the 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 the debt of the former redevelopment agency.
Interfund Transactions
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.
52 Packet Page 79
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting (Continued) The government-wide, proprietary and fiduciary fund financial statements are reported using the economic resources 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, including lease and liabilities, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they are due and payable. General capital asset acquisitions, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Issuances of long-term debt, financing through leases and acquisitions under 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).
53 Packet Page 80
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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, 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).
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, except for intangible right to-use lease assets, the measurement of which is discussed in Note 1 below. 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.
Depreciation is charged to operations using the straight-line method of depreciation over the estimated useful lives of the assets as follows:
Buildings 30 Years
Improvements 3-50 Years
Equipment 3-15 Years
Vehicles 5-7 Years
Streets 50 Years
Curb and Gutter 50 Years
Storm Drains 50 Years
54 Packet Page 81
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)
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. Deferred outflows of resources represent a consumption of net assets that applies to future periods, and deferred inflows of resources represent an acquisition of net assets that applies to future periods.
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 assets 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. In the government‐wide financial statements the City reports deferred amounts related to leases and deferred amounts related to pension and OPEB.
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. 55 Packet Page 82
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)
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 (Cal PERS) 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.
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 voterapproved indebtedness are excluded from this limitation. 56 Packet Page 83
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)
8. Property Taxes (Continued)
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.
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, granters, 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." 57 Packet Page 84
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)
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.
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.
58 Packet Page 85
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, and Net Position or Equity (Continued)
10. Fund Balance (Continued)
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 $13,209,559 for the fiscal year ended June 30, 2023.
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 non-general 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.
F. Subscription-Based Information Technology Arrangements (SBITAs) Accounting As clarified by the Government Accounting Standards Board (GASB) Statement No. 96, a Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. 59 Packet Page 86
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Subscription-Based Information Technology Arrangements (SBITAs) Accounting (Continued)
At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the contract term.
Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐ line basis over the shorter of the subscription term or the useful life of the underlying IT assets. The City recognizes SBITA liabilities with an initial, individual value of $300,000 or more for all funds.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription.
Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported with liabilities on the statement of net position.
For the fiscal year 2023, the City has no SBITAs applicable to GASB 96. 60 Packet Page 87
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 DEFICIT FUND BALANCES
The following funds had deficit fund balances or net position at June 30, 2023:
Deficit
Funds Net Position
Major Governmental Funds:
Transportation Capital Projects Fund $ (403,618)
Measure X Bond Capital Projects Fund (2,357)
Non-Major Governmental Funds:
SAFER FEMA Grant Special Revenue Fund (167,017)
Stormwater Special Revenue Fund (358,227)
Housing Collaborative Fund (7,813)
General Capital Projects Fund (508,030)
These deficits are expected to be eliminated with future revenues from services, fees reimbursements from federal agencies, and interfund transfers. 61 Packet Page 88
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS
A. Cash and Investments
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, 2023 consisted of the following:
General Fund: $49,185 held in escrow for the payment of contracted items.
Debt Service Pension Obligation Fund: $37,168 in residual interest cash held by the trustee until bond payment.
Golf Fund: $573,939 held by trustee for debt service on bond.
Self-Insurance Fund: $25,960 held in reserve for payment of Tail claims.
Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and Investments 52,405,589 $
Restricted Cash and Investments 3,812,772
Cash with Fiscal Agents 1,028,776
Fiduciary Funds:
Cash and Investments 4,994,996
Total Cash and Investments 62,242,133 $
Cash and investments as of June 30, 2023 consisted of the following:
Cash on Hand 9,475 $
Deposits with Financial Institution 31,474,025
Investments 30,758,633
Total Cash and Investments 62,242,133 $
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 $31,688,558 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, 2023, the carrying amount of the City's deposits was $25,327,151, and the corresponding bank balance was $24,665,707. The difference of $661,443 was principally due to outstanding checks and deposits in transit.
62 Packet Page 89
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
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.
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:
Level 1 – Investments reflect prices quoted in active markets; 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,
Level 3 – Investments reflect prices based upon unobservable sources.
The City has the following recurring fair value measurements as of June 30, 2023:
Investments by Fair Value Level Total
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs (Level 3)
Held by Fiscal Agent:
Money Market Mutual Funds $ 6,741,909 $ 6,741,909 $ - $ - Investments measured at amortized costs:
California Local Agency Investment Pool (LAIF) 24,016,724 $ Total Pooled and Directed
Investments $ 30,758,633
Fair Value Measurement Using
63 Packet Page 90
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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.
Investment Type
Maturity
(in Months) 12
Months
or Less
California Local Agency Investment Pool (LAIF) $ 24,016,724 Held by Fiscal Agents:
Money Market Mutual Funds 6,741,909
Total Investments $ 30,758,633
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations As of June 30, 2023, and during the 2022-2023 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.
Investment Type Moody's
Percent of
Portfolio Fair Value
California Local Agency Investment Pool (LAIF) Not Rated 78.08% 24,016,724 $ Held by Fiscal Agent:
Money Market Mutual Funds Not Rated 21.92% 6,741,909
Total 100% 30,758,633 $
64 Packet Page 91
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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.
California Local Agency Investment Fund (LAIF)
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. As of June 30, 2023, these investments have an average maturity of 260 days. At June 30, 2023, the City's investment position in LAIF was $24 million.
65 Packet Page 92
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
B. Loans Receivable
Housing Rehabilitation and Affordable Housing Loans:
The City engages in programs designed to encourage construction or improvement in lowto-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, 2023, was $1,335,601. Further, the City had loans of $71,740 from CDBG programs, and $6,997 in employee housing loans and other community loans $184,185, for a total loans receivable balance of $1,598,523.
Loans receivable from Successor Agency
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, 2023 was $2,333,431.
C. Capital Assets
Capital asset activity for the year ended June 30, 2023 for governmental activities was as follows:
Balance
July 1, 2022 Additions Retirements Transfer
Balance
June 30, 2023
Governmental Activities
Capital Assets, not being Depreciated:
Land 120,761,138 $ 1,603,731 $ - $ $ 1,442,825 $ 123,807,694 Construction in Progress 1,564,569 5,374,595 - (3,689,133) 3,250,031 Intangibles (Nondepreciable) 4,251,994 - - - 4,251,994
Total Capital Assets, not
being Depreciated 126,577,701 6,978,326 - (2,246,308) 131,309,719 Capital Assets, being Depreciated:
Infrastructure (Depreciable) 94,155,981 - - - 94,155,981 Structures and Improvements 18,446,633 1,219,334 2,214,038 21,880,005 Equipment 14,914,517 618,748 (142,262) 32,270 15,423,273 Intangibles (Depreciable) 6,514,798 1,508,132 - - 8,022,930 Total Capital Assets,
being Deprectiated 134,031,929 3,346,214 (142,262) 2,246,308 139,482,189 Less Accumulated Deprectiation for:
Infrastructure (Depreciable) (61,533,416) (1,330,360) - - (62,863,776) Structures and Improvements (10,067,064) (813,723) - - (10,880,787) Equipment (9,885,258) (1,082,175) 142,262 - (10,825,171) Intangibles (Depreciable) (2,550,995) (221,159) - - (2,772,154) Total Accumulated Depreciation (84,036,733) (3,447,417) 142,262 - (87,341,888) Total Capital Assets, being
Depreciated, Net 49,995,196 (101,203) - 2,246,308 52,140,301 Governmental Activities,
Capital Assets, Net $ 176,572,897 $ 6,877,123 $ - $ - $ 183,450,020 66 Packet Page 93
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
C. Capital Assets (Continued)
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 $ 2,183
Public Safety 626,615
Public Works 2,435,415
Community Development 233,076
Recreation 86,531
Capital Assets Held by the Government's
Internal Service Funds are charges to
various functions based on their usage of
the assets 63,597
Total $ 3,447,417
Capital asset activity for the year ended June 30, 2023 for business-type activities was as follows:
Balance
July 1, 2022 Additions
Transfers/
Deletion
Balance
June 30, 2023
Business-Type Activities
Capital Assets,not being Depreciated:
Land 8,539,893 $ - $ $ - $ 8,539,893
Construction in Progress (41,192) 41,192 - -
Intangibles (Nondepreciable) 41,192 7,522,232 - 7,563,424 Total Capital Assets, not being
Depreciated 8,539,893 7,563,424 - 16,103,317
Capital Assets, being Deprectiated:
Infrastructure (Depreciable) 2,496,587 23,875 (8,693) 2,511,769 Land Improvements 3,497,417 - - 3,497,417
Structures and Improvements 703,785 25,000 - 728,785
Equipment 239,071 33,000 - 272,071
Total Capital Assets,
being Depreciated 6,936,860 81,875 (8,693) 7,010,042
Less Accumulated Depreciation for:
Infrastructure (Depreciable) (1,823,203) (60,760) - (1,883,963) Land Improvements (1,454,075) (145,091) - (1,599,166)
Structures and Improvements (459,353) (22,569) - (481,922) Equipment (188,857) (8,568) - (197,425)
Total Accumulated Depreciation (3,925,488) (236,988) - (4,162,476) Total Capital Assets, being
Depreciated, Net 3,011,372 (155,113) (8,693) 2,847,566
Business-Type Activities,
Capital Assets, Net $ 11,551,265 $ 7,408,311 $ (8,693) $ 18,950,883 67 Packet Page 94
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
C. Capital Assets (Continued)
Depreciation Allocation
Depreciation expense of $81,900 was charged to the Water Fund and $155,088 was charged to the Golf Fund.
Intangible Capacity rights
The city paid capacity fees to obtain 407 acre feet per year of recycled water for use on the City’s Golf Course from Marina Coast Water District.
As a direct result of watering the golf course with recycled water, the City will generate an equivalent amount of potable water credits in the Seaside Groundwater Basin. The City valued the potable water credits at the cost of the capacity fees paid for recycled water distribution; $7,522,232.
D. Interfund Receivables, Payable 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, 2023.
Fund Due From Due To
Governmental Funds:
General Fund $ 861,677 $ -
Measure X Bond Fund - 2,374
Nonmajor Governmental Funds - 740,547
Proprietary Funds:
Golf Fund - 76,333
Internal Service Fund:
Vehicle Maintenance Fund - 42,423
Total $ 861,677 $ 861,677
The purpose of Due To/Due From was to cover negative cash balances in these funds. 68 Packet Page 95
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
D. Interfund Receivables, Payable and Transfers (Continued)
2. Long-Term Interfund Advances
At June 30, 2023, 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 $ 7,607,246 $ -
Proprietary Funds:
Water Fund - 7,607,246
Total $ 7,607,246 $ 7,607,246
The purpose of the Advances To/Advances From was the following:
During the fiscal year 2022-2023, the City Council approved a loan from the City to the Water fund in the amount of $7,522,232 to secure 407 acre feet of recycled water. The loan is to be paid with 2 years deferred, twenty equal annual principal payments of $412,038 plus simple interest at the rate of 0.75%, starting in the fiscal year 2025, and be paid off by 2024. The outstanding balance at June 30, 2023 was $7,607,246.
3. Interfund Transfers
Fund Transfers In Transfers Out
Governmental Funds:
General Fund $ 5,110,933 - $
Transportation Capital Projects Fund 2,559,755 -
Measure X Bond Fund 643,072 1,238,875
Nonmajor Governmental Funds 4,310,186 2,663,205
Water Enterprise Fund 1,500,000 -
Total $ 9,013,013 $ 9,013,013
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. 69 Packet Page 96
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities
1. Changes in Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2023 was as follows:
Amount Due
Balance Balance Within One
July 1, 2022 Additions Reductions June 30, 2023 Year
Governmental Activities
Tax Pension Obligation Bond 2,115,000 $ - $ 690,000 $ $ 1,425,000 $ 680,000 Measure X Bond 10,330,000 245,000 - 10,085,000 255,000
Cutino Park Improvement Bond 4,490,000 200,000 - 4,290,000 210,000 Unamortized Premiums 247,908 13,587 - 234,321 -
Leases 1,509,787 1,508,132 417,784 2,600,135 419,068
Claims Payable 1,165,129 89,042 1,076,087 73,515
Compensated Absences 1,327,586 1,324,485 1,085,743 1,566,328 215,817 Total Governmental Activites 21,185,410 $ $ 2,832,617 $ 2,741,156 $ 21,276,871 $ 1,853,400 Business-Type Activities
Lease Revenue Bonds $ 3,050,000 $ 120,000 - $ $ 2,930,000 $ 130,000 Unamortized Discount (37,226) - 2,566 (34,660) -
Leases 13,480 13,480 - - -
Compensated Absences 10,223 13,634 9,639 14,218 1,670
Total Business-Type Activities 3,036,477 $ $ 13,634 $ 145,685 $ 2,909,558 $ 131,670 Fiduciary Fund
Tax Allocation Bonds $ 1,740,000 $ 115,000 - $ $ 1,625,000 $ 120,000 Unamortized Premiums on Bonds 453,051 (40,861) - 412,190 - Total Fiduciary Activities $ 2,193,051 $ 74,139 - $ $ 2,037,190 $ 120,000
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 (POB). 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, 2023 was $1,425,000.
70 Packet Page 97
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities
2. Governmental Activities (Continued)
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, 2023, 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
2024 $ 680,000 $ 78,148 $ 758,148
2025 745,000 40,856 785,856
Total $ 1,425,000 $ 119,004 $ 1,544,004
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
2024 $ 210,000 $ 166,369 $ 376,369
2025 220,000 155,869 375,869
2026 230,000 144,869 374,869
2027 240,000 133,369 373,369
2028 255,000 121,369 376,369
2029-2033 1,440,000 438,120 1,878,120
2034-2038 1,695,000 183,424 1,878,424
Total $ 4,290,000 $ 1,343,389 $ 5,633,389
71 Packet Page 98
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities
2. Governmental Activities (Continued)
The Cutino Revenue Bonds covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: failure by the City to pay any Lease Payments; the failure of the City to observe or perform any warranty, covenant, condition or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. There shall be no remedy of acceleration of any Lease Payments which has not come due. Under the agreement, the City will waive any right to terminate the Lease Agreement by virtue of an abatement event by reason of any damage, destruction or condemnation. Also, in the event of termination of the Lease Term pursuant to the Lease Agreement, the Trustee will transfer to the Redemption Account all money on hand in the Lease Payment Account. No such events occurred during the fiscal year ending June 30, 2023.
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
2024 $ 255,000 $ 384,900 $ 639,900
2025 270,000 372,150 642,150
2026 285,000 358,650 643,650
2027 295,000 344,400 639,400
2028 310,000 329,650 639,650
2029-2033 1,765,000 1,441,994 3,206,994
2034-2038 2,080,000 1,129,282 3,209,282
2039-2043 2,480,000 725,814 3,205,814
2044-2047 2,345,000 223,876 2,568,876
Total $ 10,085,000 $ 5,310,716 $ 15,395,716
72 Packet Page 99
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities
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
2024 $ 130,000 $ 204,131 $ 334,131
2025 135,000 194,691 329,691
2026 145,000 184,716 329,716
2027 160,000 173,850 333,850
2028 170,000 162,094 332,094
2029-2033 1,050,000 603,844 1,653,844
2034-2037 1,140,000 169,575 1,309,575
Total $ 2,930,000 $ 1,692,901 $ 4,622,901
4. Leases Payable
The City has entered into certain 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, 2023
Governmental Activities:
Equipment and Vehicles 3.00%-7.29% 2,283,793 $
Structures and Improvements 3.03% 316,342
2,600,135
Business-Type Activities:
Vehicle 3.00% -
Total Lease Obligations 2,600,135 $
73 Packet Page 100
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Liabilities
4. Leases Payable (Continued)
The assets acquired through leases are as follows:
Governmental Business-type
Activities Activities
Asset:
Structures and Improvements 664,010 $ - $
Equipment and Vehicles 4,528,774 25,490
Less: Accumulated Depreciation (2,592,649) (25,490)
Total $ 2,600,135 $ -
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2024 are as follows:
Fiscal Year Ending June 30,
Governmental
Activities
Business-type
Activities
2024 $ 422,487 $ -
2025 389,993 -
2026 362,204 -
2027 330,472 -
2028 207,003 -
2029-2032 468,908 -
Total Minimum Lease Payments 2,181,067 -
Less: Amount Representing Interest - -
Present Value of Minimum Lease Payments 2,181,067 $ $ -
5. 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
2024 120,000 $ 57,513 $ 177,513 $
2025 125,000 51,388 176,388
2026 135,000 44,888 179,888
2027 135,000 38,138 173,138
2028 145,000 32,588 177,588
2029-2033 795,000 92,906 887,906
2034 170,000 2,763 172,763
Total $ 1,625,000 $ 320,181 $ 1,945,181
74 Packet Page 101
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. Leases
1. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City recognizes lease receivable or liabilities with an initial, individual value of $300,000 or more for all funds, based on the future lease payments remaining at the start of the lease.
2. Lessor
The City is a lessor for noncancellable leases of buildings and facilities. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses bond interest rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 75 Packet Page 102
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. Leases (Continued)
3. Lessee
The City is a lessee for miscellaneous leases. If the lease is over the threshold, the City will recognize a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements.
At the commencement of a lease, City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs.
Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, City generally uses bond interest rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.
76 Packet Page 103
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. Leases (Continued)
4. Leases Receivable City (City as Lessor)
The summary for the leases details and balances related to governmental activities leases receivable and deferred inflows of resources recorded as of June 30, 2023 were:
Lessee Property Address
Original
Lease Date
Lease
Ending Date
Term
Duration
(Years)
Remaining
Lease Term
(years)
Extension
Years
Expiration
Date
Including
Options
Embassy Suites Hotel
1441 Canyon Del Rey
Blvd 9/8/1989 9/1/2088 99 65 - 9/1/2088
Lessee
Interest
Revenue
Lease
Revenue
Monthly Revenue
as of
June 30, 2023
Lease Receivable
Balance at
June 30, 2023
Deferred Inflow of
Resources at
June 30, 2023
Embassy Suites Hotel $ 102,920 196,259 $ 8,577 $ $ 6,113,538 $ 5,917,279 The future principal and interest lease receivables as of June 30, were as follows:
For the Year
Ended June 30 Principal Interest Total
2024 $ (96,381) $ 199,301 $ 102,920
2025 (99,523) 202,443 102,920
2026 (102,768) 205,688 102,920
2027 (106,118) 209,038 102,920
2028 (109,578) 212,498 102,920
2029-2033 44,520 1,087,600 1,132,120
2034-2038 227,783 1,058,717 1,286,500
2039-2043 267,413 1,019,087 1,286,500
2044-2048 313,938 972,562 1,286,500
2049-2053 368,556 917,944 1,286,500
2054-2058 432,677 853,823 1,286,500
2059-2063 507,954 778,546 1,286,500
2064-2068 596,329 690,171 1,286,500
2069-2073 700,077 586,423 1,286,500
2074-2078 821,876 464,624 1,286,500
2079-2083 964,867 321,633 1,286,500
2084-2088 1,132,738 153,762 1,286,500
2089 249,178 8,122 257,300
Totals $ 6,113,538 $ 9,941,982 $ 16,055,520
77 Packet Page 104
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. Leases (Continued)
4. Leases Receivable City (City as Lessor) (Continued)
Embassy Suites Hotel
As shown in the summary table, the City leases the 5.662 acre site located at 1441 Canyon Del Rey Boulevard to Embassy Suites Hotel. The lease terms were 99 years. As of June 30, 2023, the lease has 65 years remaining. The City recognized $102,920 in lease revenue and $199,301 in interest revenue during the current fiscal year related to these leases. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.
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.
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.
78 Packet Page 105
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)
1. General Information about the Pension Plans (Continued) The Plans' provisions and benefits in effect at June 30, 2023 are summarized as follows:
Hire Date
Prior to
January 1, 2013
On or After
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% 6.75%
Required Employer Contribution Rates 10.87% 7.47%
Safety Tier 1
Fire Safety
Tier 2
Hire Date
Prior to
January 1, 2013
On or After
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 50-55
Monthly Benefits, as a % of Eligible Compensation 3% 2.0% - 2.7% Required Employee Contribution Rates 9% 9%
Required Employer Contribution Rates 23.75% 19.27%
Miscellaneous
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 Emlpoyer Contribution Rates 13.86%
79 Packet Page 106
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)
1. General Information about the Pension Plans (Continued) 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, 2023, the contributions the City recognized as part of pension expense were $4,704,470.
2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023, 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 $ 18,184,058
Safety 39,975,828
PARS 1,533,116
Total Net Pension Liability (Asset) $ 59,693,002
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, 2022, 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, 2021 rolled forward to June 30, 2022 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, 2022 and 2023 was as follows:
Miscellaneous Safety Total
Proportion - June 30, 2022 0.50275% 0.63843% 0.59079%
Proportion - June 30, 2023 0.38861% 0.58176% 0.48518%
Change - Increase (Decrease) -0.11414% -0.05667% -0.10561% 80 Packet Page 107
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)
2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Change in the Net Pension Liability - PARS Plan
The net pension liability of the PARS Plan is measured as of June 30, 2023, 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, 2022. The change in the Net Pension Liability for the PARS Plan is as follows:
Total
Pension
Liability
Plan
Fiduciary Net
Position
Net Pension
Liability
(Asset)
Balances - June 30, 2022 $ 2,764,152 $ 1,391,986 $ 1,372,166 Changes in Fiscal Year:
Service Cost 26,891 - 26,891
Interest on Total Pension Liability 170,213 - 170,213
Effect on economic/demographic -
gains or losses 37,422 - 37,422
Effect of assumptions changes -
or inputs 68,252 - 68,252
Benefit Payments (350,288) (350,288) -
Employer Contributions - 64,053 (64,053)
Net investment Income - 83,766 (83,766)
Administrative Expenses - (5,991) 5,991
Net Changes (47,510) (208,460) 160,950
Balances - June 30, 2023 $ 2,716,642 $ 1,183,526 $ 1,533,116 For the year ended June 30, 2023, the City recognized total pension expense of ($2,176,026), including $620,570 for the PARS plan, ($2,096,447) for the miscellaneous plan and ($700,149) 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.
81 Packet Page 108
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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 – Miscellaneous Plan
At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources for the Miscellaneous Plan:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent to
Measurment Date $ - 1,480,574 $
Change in Proportion 30,585 (812,038)
Change in Assumptions 1,863,337
Differences Between Expected and Actual
Experience 365,171 (244,576)
Difference in Actual Contribution vs.
Proportionate Share of Contributions - (572,022)
Net Differences Between Projected and Actual
Earnings on Plan Investments 3,330,836
Total $ 7,070,503 $ (1,628,636)
Deferred Outflows and Inflows - Safety Plan
At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources for the Safety Plan:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent to
Measurment Date $ 3,223,896 $ -
Change in Proportion 1,414,408 (883,577)
Change in Assumptions 4,030,774 -
Differences Between Expected and Actual
Experience 1,654,454 (434,106)
Difference in Actual Contribution vs.
Proportionate Share of Contributions - (2,676,698)
Net Differences Between Projected and Actual
Earnings on Plan Investments 6,312,742
Total $ 16,636,274 $ (3,994,381)
82 Packet Page 109
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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 - PARS Plan
At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources for the PARS Plan:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Net Differences Between Projected and Actual
Earnings on Plan Investments $ - $ (107,835)
Differences Between Expected and Actual
Experience - (15,409)
Change in Assumptions - (28,104)
Total $ - $ (151,348)
Total for ALL Plans $ 23,706,777 $ (5,774,365)
The City reported $4,704,470 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, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ending
June 30,
Miscellanous
Plan Safety Plan PARS Plan Total
2024 $785,709 $2,306,850 (71,149) $ 3,021,410 $
2025 695,836 1,895,324 (15,497) 2,575,663
2026 442,496 1,364,970 (65,229) 1,742,237
2027 2,037,252 3,850,853 527 5,888,632
Total $ 3,961,293 $ 9,417,997 $ (151,348) $ 13,227,942
83 Packet Page 110
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)
2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions – The total pension liabilities in the June 30 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous
Hired Prior to
1/1/2013
Miscellaneous
Hired After to
1/1/2013 Safety Tier 1
Fire Safety
Tier 2 PARS
Valuation Date June 30, 2021 June 30, 2021 June 30, 2021 June 30, 2021 June 30, 2022 Measurement Date June 30, 2022 June 30, 2022 June 30, 2022 June 30, 2022 June 30, 2023 Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.90% 6.90% 6.90% 6.90% 6.50%
Inflation 2.30% 2.30% 2.30% 2.30% 2.30%
Payroll Growth
Investment Rate of Return 6.90% (1) 6.90% (1) 6.90% (1) 6.90% (1) 6.50% (1) Mortality Rate Table (2)
(1) Net of pension plan investment expenses, including inflation. (2) The mortality table used was developed based on CalPERS-specific data. The table includes generational mortality improvements using Society of Actuaries Scale 80% of scale MP 2020. For more details on this table, please refer to the November 2021 experience study report (based on CalPERS demographic data from 2001 to 2019) that can be found on othe CalPERS website.
Entry-Age Normal Cost Method
Varies by Entry Age and Service
Based on CalPERS membership data for all funds
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of a November 2021 CalPERS experience study for the period 2001 to 2019. 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 6.90% 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 6.90% discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
84 Packet Page 111
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
A. Pension Plans (Continued)
2. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.
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.
Asset Class (1)
Assumed
Asset
Allocation Real Return 1,2
Global Equity-Cap Weighted 30.00% 4.54%
Global Equity-Non-Cap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.
Changes of Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. 85 Packet Page 112
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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 5.90% 5.90% 5.50%
Net Pension Liability 26,708,126 $ 57,797,664 $ 1,794,353 $ Current Discount Rate 6.90% 6.90% 6.50%
Net Pension Liability 18,184,058 $ 39,975,828 $ 1,533,116 $ 1% Increase 7.90% 7.90% 7.50%
Net Pension Liability 11,170,865 $ 25,410,503 $ 1,312,191 $ 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. 86 Packet Page 113
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
B. Other Postemployment Benefits (OPEB) (Continued)
2. Actuarial Assumptions
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.
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.
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. 87 Packet Page 114
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
B. Other Postemployment Benefits (OPEB) (Continued)
2. Actuarial Assumptions (Continued)
The Net OPEB Liability was determined using an actuarial valuation as of June 30, 2023, using the following assumptions:
Valuation Date June 30, 2023
Measurement Date June 30, 2023
Discount Rate 3.65% as of June 30, 2022
3.54% as of June 30, 2023
Inflation 2.50%
Salary Increase 2.75%
Investment Rate of
Return 3.65% as of June 30, 2023
Healthcare Trend 4.0% Thereafter
3. Employees Covered
At June 30, 2023, the following employees were covered by the benefit terms:
Active employees 38
Inactives currently receiving benefit payments 37
Total 75
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, 2023, 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, 2023, the City's contributions were $704,304. The City is responsible for all contributions and is charging each responsible department its proportional share of the pay-as-you-go costs. 88 Packet Page 115
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
B. Other Postemployment Benefits (OPEB) (Continued)
5. Change in the OPEB Liability
The table below shows the changes in the total OPEB liability as of June 30, 2023.
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balances - June 30, 2022 $ 9,532,109 $ - $ 9,532,109
Changes in the Fiscal Year:
Service Cost 189,412 - 189,412
Interest on the total OPEB liability / Return of FNP 328,323 - 328,323 Employer contributions - 704,304 (704,304)
Benefit payments* (704,304) (704,304) -
Administrative expenses - - -
Experience (Gains)/Losses - - -
Changes in Assumptions (66,903) - (66,903)
Other - - -
Net changes (253,472) - (253,472)
Balances - June 30, 2023 $ 9,278,637 $ - $ 9,278,637
* Includes $109,545 due to implied rate subsidy.
Plan fiduciary net position as percentage of the total OPEB liability
6. Sensitivity of the OPEB Liability to Change 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.
Net OPEB Liability/(Asset)
1% Decrease
Rate
2.54%
Current
Discount Rate
3.54%
1% Increase
Rate
4.54%
Total OPEB Liability 9,841,626 $ $ 9,278,637 $ 8,770,836 89 Packet Page 116
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
B. Other Postemployment Benefits (OPEB) (Continued)
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.
Net OPEB Liability/(Asset)
Current Healthcare Cost
1% Decrease
2.65%
decreasing to
3.00%
Trend Rates
3.65%
decreasing to
4.00%
1% Increase
4.65%
Increasing to
5.00%
Total OPEB Liability 8,536,217 $ $ 9,278,637 $ 10,102,512
8. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2023, the City recognized OPEB expense of ($452,301).
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, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 347,220 $ (457,715) $ Changes in assumptions 312,589 (1,002,648)
Differences between projected and actual return on assets - - Total $ 659,809 $ (1,460,363)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended
June 30
Deferred
Outflows (Inflows)
of Resources
2024 $ (229,482)
2025 (397,055)
2026 (167,938)
2027 (6,079)
Total $ (800,554)
90 Packet Page 117
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
C. Liability, Workers’ Compensation, and Purchased Insurance
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 124 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 selfinsured 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.
2. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012- 13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.
Primary Liability Program
Claims are pooled separately between police and general government 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 $100,000 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 $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/. 91 Packet Page 118
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
C. Liability, Workers’ Compensation, and Purchased Insurance (Continued)
2. Primary Self-Insurance Programs of the Authority (Continued) Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government 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 $75,000 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 $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2022-23 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
3. Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis.
There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.
Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the Authority. The City’s property currently has all-risk property insurance protection in the amount of $36,006,671. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.
Earthquake and Flood Insurance
The City 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 $19,271,040.
There is a deductible of 5% per unit of value with a minimum deductible of $100,000. 92 Packet Page 119
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
C. Liability, Workers’ Compensation, and Purchased Insurance (Continued)
3. Purchased Insurance (Continued)
Crime Insurance
The City 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 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 according to a schedule. The City then pays for the insurance. The insurance is facilitated 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 2022-23.
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. Changes in the balances of claims liabilities since July 1, 2018, resulted from the following:
Net Unpaid Claims - July 1, 2021 $ 998,839
Claims Incurred and Changes in Estimates 338,785
Claim Payments (172,495)
Unpaid Claims - June 30, 2022 $ 1,165,129
Net Unpaid Claims - July 1, 2022 $ 1,165,129
Claims Incurred and Changes in Estimates (40,839)
Claim Payments (48,203)
Unpaid Claims - June 30, 2023 $ 1,076,087
93 Packet Page 120
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
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, 2023, the City has commitments of approximately $1,660,554 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.
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, 2023 is $6,997.
94 Packet Page 121
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
F. Fund Balances
Fund Balances for all major and nonmajor governmental fund as of June 30, 2023 were distributed as follows:
General
Fund
FORA Blight
Removal - Bond
Fund
Transportation
Capital
Projects
Measure X
Bond Fund
Other
Governmental
Funds Total
Nonspendable
Notes/Loans Receivable - Housing 191,182 $ - $ $ - $ - $ 112 $ 191,294 Advances 9,940,677 - - - - 9,940,677
Total Nonspendable 10,131,859 - - - 10,131,971 112
Restricted
Debt Service - - - - 1,153,242 1,153,242
Pension liabilities 3,122,850 - - - - 3,122,850
General Government - Leases -
and Employee Programs 49,185 - - - - 49,185
Public Safety - Grants/State Law - - - - 2,235,725 2,235,725 Recreation - Senior Program - - - - 159,891 159,891
Public Works/Capital Projects - - - - 5,276,022 5,276,022 Community Services - - - - - -
Community Development - Various - - - - 1,562,829 1,562,829 Community Development - Housing
Loans - - - - 520,941 520, 941
Community Development - Housing - - - - 7,020,668 7,020,668 Total Restricted 3,172,035 - - - 17,929,318 21,101,353
Committed
General Fund Reserves 13,209,559 - - - 13,209,559 -
Reserve for encumbrances 5,651,410 - - - - 5,651,410
Public Works - Army Contract - 4,931,940 - - 679,986 5,611,926 Community Development - Housing - - - - 1,186,011 1,186,011 Total Committed 18,860,969 4,931,940 - - 1,865,997 25,658,906 Assigned
General Government - Employee
Programs 4,504 - - - - 4,504
Total Assigned 4,504 - - - - 4,504
Unassigned : 12,584,340 - (403,618) (2,357) (1,041,087) 11,137,278 Total Fund Balances $ 44,753,707 $ 4,931,940 $ (403,618) $ (2,357) $ 18,754,340 $ 68,034,012 In fiscal year 2022-23, the City established an irrevocable trust account with PARS to prefund retirement plan obligations. The contributions placed in the trust will reduce the City’s net pension liability for financial purposes as required by GAAP. As of June 30, 2023, the balances in PARS 115 Trust is $3,122,850.
95 Packet Page 122
CITY OF SEASIDE
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 OTHER INFORMATION (CONTINUED)
G. RESTATEMENTS
Adjustments resulting from errors or changes are treated as adjustments to prior periods to comply with provisions of the accounting standards. Accordingly, the City reports these changes as restatements of beginning fund balances as of July 1, 2022:
• Seaside County Sanitation District Custodial Fund’s beginning net position was restated and reduced by $14,071,095 to remove the Capital Assets reported in the custodial fund.
96 Packet Page 123
REQUIRED SUPPLEMENTARY INFORMATION
Packet Page 124
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Property Taxes $ 41,183,052 $ 41,183,052 $ 43,780,655 $ 2,597,603 Licenses and Permits 1,030,521 1,030,521 1,209,979 179,458 Fines and Penalties 142,287 142,287 176,582 34,295
Use of Money and Property 227,276 227,276 726,251 498,975 Intergovernmental Revenues 266,667 272,165 618,558 346,393 Charges for Services 727,611 727,611 749,461 21,850
Other Revenues 9,509,484 9,509,484 1,040,132 (8,469,352) Total Revenues 53,086,898 53,092,396 48,301,618 (4,790,778)
EXPENDITURES
Current:
General Government:
City Council 831,635 846,635 736,904 109,731
City Manager 1,240,459 1,251,018 1,272,803 (21,785)
City Attorney 1,129,371 1,129,371 897,092 232,279
Finance Division 1,342,982 1,342,982 1,272,417 70,565
Personnel 1,125,292 1,125,292 924,188 201,104
Boards and Commissions 282,097 63,083 53,971 9,112
Janitorial Services 424,085 424,085 426,638 (2,553)
Central Service Charges (1,952,430) (1,952,430) (1,985,668) 33,238 Total General Government 4,423,491 4,230,036 3,598,345 631,691 Public Works:
Governmental Building Division 1,228,755 1,297,986 1,366,239 (68,253) Parks Division 2,297,624 3,105,946 2,586,811 519,135
Engineering Division 1,488,487 1,561,537 1,328,462 233,075 Central Service Charges (917,802) (917,802) (917,088) (714) Total Public Works 4,097,064 5,047,667 4,364,424 683,243 Public Safety:
Police 16,199,687 16,218,687 14,843,095 1,375,592
Fire 10,113,089 10,907,557 10,325,004 582,553
CalVIP Grant - - - -
Central Services Charges 1,758,119 844,639 (283,557) 1,128,196 Total Public Safety 28,070,895 27,970,883 24,884,542 3,086,341 Community Development:
Resource Management 1,633,885 1,633,885 1,176,104 457,781 Building Division 763,827 3,498,288 3,498,445 (157)
Planning Division 998,414 1,178,414 770,348 408,066
Central Services Charges (374,939) (374,939) (359,927) (15,012) Total Community Development 3,021,187 5,935,648 5,084,970 850,678
CITY OF SEASIDE
Budgeted Amounts
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED JUNE 30,2023
98 Packet Page 125
Actual Variance with
Original Final Amounts Final Budget
EXPENDITURES (CONTINUED)
Recreation:
Community Center 1,490,383 1,530,383 1,365,543 164,840
Youth and Education Center 1,665,432 1,680,432 1,653,883 26,549 General Recreation 1,027,049 1,027,049 800,875 226,174
Swim Center 464,489 464,489 364,183 100,306
Senior/Human Services 3,231 3,231 3,797 (566)
Central Services Charges 516,612 516,612 215,717 300,895 Total Recreation 5,167,196 5,222,196 4,403,998 818,198
Capital outlay - - 1,508,132 (1,508,132)
Debt Services:
Principal 491,313 491,313 346,274 145,039
Interest and Fiscal Charges 12,536 12,536 58,805 (46,269) Total Debt Service 503,849 503,849 405,079 98,770
Total Expenditures 45,283,682 48,910,279 44,249,490 4,660,789
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 7,803,216 4,182,117 4,052,128 (129,989)
OTHER FINANCING SOURCES (USES)
Leases addition - - 1,508,132 1,508,132
Transfers In - 50,000 - (50,000)
Transfers Out (5,637,601) (7,663,670) (5,110,933) 2,552,737 Total Other Financing Sources
(Uses) (5,637,601) (7,613,670) (3,602,801) 4,010,869
NET CHANGE IN TOTAL FUND BALANCE $ 2,165,615 $ (3,431,553) 449,327 3,880,880 $ Fund Balance - Beginning of Year 44,304,380
FUND BALANCE - END OF YEAR $ 44,753,707
CITY OF SEASIDE
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE (CONTINUED)
YEAR ENDED JUNE 30, 2022
Budgeted Amounts
99 Packet Page 126
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property - $ $ - $ 71,333 $ 71,333
Intergovernmental Revenue - - - -
Total Revenues - - 71,333 71,333
EXPENDITURES
Current:
Public Works 6,235,463 6,235,463 1,288,506 4,946,957
NET CHANGE IN FUND BALANCE $ (6,235,463) $ (6,235,463) (1,217,173) $ 5,018,290 Fund Balance - Beginning of Year 6,149,113
FUND BALANCE - END OF YEAR $ 4,931,940
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
FORA BLIGHT REMOVAL-BOND FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
100
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CITY OF SEASIDE
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
Other Postemployment Benefits Plan - Agent Multiple-Employer Plan** Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years*
For the Measurement Period Ended June 30 2023 2022 2021 2020 2019 2018 Total OPEB Liability
Service Cost 189,412 $ 292,568 $ 283,264 $ 297,013 $ 269,500 $ 432,449 $ Interest on total OPEB liability 328,323 243,438 269,575 394,507 404,213 381,141 Actual and expected experience difference (704,304) (895,529) 1,649,307 53,393 - - Changes in assumptions (66,903.00) (840,981) (2,338,124) 1,133,806 722,824 (224,252) Changes in benefit term - - - - - -
Benefit Payments 0 (839,147) (808,090) (621,606) (626,143.00) (624,396) Net change in Total OPEB Liability (253,472) (2,039,651) (944,068) 1,257,113 770,394 (35,058) Total OPEB Liability at beginning of year 9,532,109 11,571,760 12,515,828 11,258,715 10,488,321 10,523,379 Total OPEB Liability at end of year $ 9,278,637 $ 9,532,109 $ 11,571,760 $ 12,515,828 $ 11,258,715 $ 10,488,321 Covered Employee payroll $ 5,510,565 $ 5,406,164 $ 4,929,564 $ 6,733,292 $ 6,907,005 $ 6,744,934 Total OPEB Liability as a percentage of
covered-employee payroll 168.38% 176.32% 234.74% 185.88% 163.00% 155.50% Note:
*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 **There are no assets accumulated in a trust
that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the pension/OPEB plan 101
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CITY OF SEASIDE
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
Schedule of the City’s Proportionate Share of the Net Pension Liability
COST SHARING PLANS
Last Ten Fiscal Years*
Miscellaneous Plan
Measurement Date June 30 2022 2021 2020 2019 2018 2017 2016 2015 Plan's Proportion of the Net Pension Liability 0.5028% 0.3664% 0.3555% 0.3232% 0.3340% 0.3250% 0.3084% 0.3251% Plan's Proportionate Share of the Net Pension Liability 18,184,058 $ 15,453,175 $ 14,233,825 $ 12,179,764 $ 13,166,118 $ 11,291,439 $ 8,459,845 $ 8,035,936 $ Plan's Covered Payroll 7,928,660 7,310,950 5,985,549 5,926,286 5,315,840 5,211,608 5,109,608 4,960,602 Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 229.35% 211.37% 237.80% 205.52% 247.68% 216.66% 165.57% 162.00% The Pension Plan's (PERF-C) Fiduciary Net Position as
a Percentage of the Total Pension Liability 90.49% 77.71% 77.73% 77.69% 75.39% 75.87% 79.89% 81.15% Safety Plan
Measurement Date June 30 2022 2021 2020 2019 2018 2017 2016 2015 Plan's Proportion of the Net Pension Liability 0.6384% 0.5191% 0.5072% 0.4994% 0.4878% 0.4878% 0.4810% 0.4517% Plan's Proportionate Share of the Net Pension Liability 39,975,828 $ 34,582,790 $ 31,662,282 $ 29,305,095 $ 28,925,869 $ 25,266,061 $ 19,819,003 $ 16,942,902 $ Plan's Covered Payroll 9,397,427 7,656,958 6,800,625 7,132,786 7,062,165 6,923,691 6,787,933 6,590,226 Plan's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 425.39% 451.65% 465.58% 410.85% 409.59% 364.92% 291.97% 257.09% The Pension Plan's (PERF-C) Fiduciary Net Position as
a Percentage of the Total Pension Liability 86.61% 73.12% 73.37% 73.39% 71.74% 72.69% 77.27% 78.83% *Fiscal year 2015 was the first year of implementation. Additional years will be presented as they become available 102
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CITY OF SEASIDE
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
Schedule of Pension Contributions
COST SHARING PLANS
Last Ten Fiscal Years*
Miscellaneous Plan
Fiscal Year Ended June 30 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuary Determined Contribution 2,090,617 $ 1,783,332 $ 1,559,816 $ 1,463,950 $ 1,235,423 $ 900,009 $ 853,571 $ 580,047 $ 507,329 $ Contribution in Relation to the
Actuarially Determined Contribution (2,090,617) (1,827,440) (1,559,816) (1,463,950) (1,235,423) (900,009) (853,571) (580,047) (507,329) Contribution Deficiency (Excess) - $ (44,108) $ $ - -$ -$ $ - $ - $ - $ - Actual Contributions as a Percentage of
Actuarial Determined Contributions 100.00% 102.47% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Covered Payroll $ 8,133,622 $ 7,928,660 $ 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 25.70% 23.05% 21.34% 24.46% 20.85% 16.93% 16.38% 11.35% 10.23% Safety Plan
Fiscal Year Ended June 30 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuary Determined Contribution $ 4,601,697 $ 3,613,298 $ 3,286,948 $ 3,134,288 $ 2,675,215 $ 2,261,369 $ 2,154,782 $ 1,675,356 $ 1,606,573 Contribution in Relation to the
Actuarially Determined Contribution (4,601,697) (3,685,127) (3,286,948) (3,134,288) (2,675,215) (2,261,369) (2,154,782) (1,675,356) (1,606,573) Contribution Deficiency (Excess) $ (71,829) - $ $ - -$ -$ $ - $ - $ - $ - Actual Contributions as a Percentage of
Actuarial Determined Contributions 100.00% 101.99% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Covered Payroll $ 13,454,559 $ 9,397,427 $ 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 34.20% 39.21% 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 103
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CITY OF SEASIDE
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
Schedule of Changes in Net Pension Liability and Related Ratios-PARS Last Ten Fiscal Years*
Measurement Date June 30 2023 2022 2021 2020
TOTAL PENSION LIABILITY
Service Cost $ 26,891 $ 32,996 $ 32,113 $ 51,907
Interest on Total Pension Liability 170,213 178,397 165,908 171,030 Effect of Plan Changes - - - -
Effect of Economic/Demographics Gains or Losses 37,422 - 301,321 - Effect of Assumptions Changes or Inputs 68,252 - - -
Differences between Expected and Actual Experience - - - - Other Adjustments - - - -
Benefit Payments (350,288) (312,686) (303,665) (260,877) Net Change in Total Pension Liability (47,510) (101,293) 195,677 (37,940) Total Pension Liability - Beginning 2,764,152 2,865,445 2,669,768 2,707,708 Total Pension Liability - Ending (a) $ 2,716,642 $ 2,764,152 $ 2,865,445 $ 2,669,768
PLAN FIDUCIARY NET POSITION
Benefit Payments $ (350,288) $ (312,686) $ (303,665) $ (260,877) Employer Contributions 64,053 86,205 67,961 100,846
Net Investment Income 83,766 (216,517) 353,468 53,900
Other Adjusments - - - -
Administrative Expenses (5,991) (7,199) (7,495) (7,502) Net Change in Fiduciary Net Position (208,460) (450,197) 110,269 (113,633) Plan Fiduciary Net Position - Beginning 1,391,986 1,842,183 1,731,914 1,845,547 Plan Fiduciary Net Position - Ending (b) $ 1,183,526 $ 1,391,986 $ 1,842,183 $ 1,731,914 Plan Net Pension Liability/ - Ending (a) - (b) $ 1,533,116 $ 1,372,166 $ 1,023,262 $ 937,854 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 43.57% 50.36% 64.29% 64.87%
Covered Payroll $ 970,567 $ 944,131 $ 1,140,499 $ 1,811,411 Plan Net Pension Liability as a Percentage of
Covered Payroll 157.96% 145.34% 89.72% 51.77%
*Fiscal year 2015 was the first year of implementation. Additional years will be presented as they become available 104
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CITY OF SEASIDE
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
Schedule of Changes in Net Pension Liability and Related Ratios-PARS Last Ten Fiscal Years*
(Continued)
2019 2018 2017 2016
$ 50,518 $ 70,090 $ 68,049 $ 83,967
106,435 119,132 143,950 132,528
- - - -
- - - -
75,437 - - -
1,011,283 - (358,987) -
- - 128,580 -
(241,995) (226,148) (193,614) (139,195)
1,001,678 (36,926) (212,022) 77,300
1,706,030 1,742,956 1,954,978 1,877,678
$ 2,707,708 $ 1,706,030 $ 1,742,956 $ 1,954,978
$ (241,995) $ (226,148) $ (193,614) $ (139,195)
116,033 249,000 233,278 343,613
112,310 105,819 157,637 30,236
- - 179,583 -
(7,604) (7,789) (7,217) (15,949)
(21,256) 120,882 369,667 218,705
1,866,803 1,745,921 1,376,254 1,157,549
$ 1,845,547 $ 1,866,803 $ 1,745,921 $ 1,376,254
$ 862,161 $ (160,773) $ (2,965) $ 578,724
68.16% 109.42% 100.17% 70.40%
$ 1,762,930 $ 1,963,515 $ 1,906,325 $ 1,850,801
48.91% -8.19% -0.16% 31.27%
105
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CITY OF SEASIDE
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
Schedule of PARS Contributions
Last Ten Fiscal Years*
Fiscal Year Ended June 30 2023 2022 2021 2020
Actuarially Determined Contribution $ 1,167,229 $ 1,410,015 $ 255,960 $ 406,546 Contribution in Relation to the
Actuarially Determined Contribution 64,053 86,205 67,961 100,846 Contribution Deficiency (Excess) $ 1,103,176 $ 1,323,810 $ 187,999 $ 305,700 Actual Contributions as a Percentage of
Actuarial Determined Contributions -5.49% -6.11% -26.55% -24.81% Covered Payroll $ 970,567 $ 944,131 $ 1,140,499 $ 1,811,411 Contributions as a Percentage of Covered Payroll 6.60% 9.13% 5.96% 5.57% *Fiscal year 2015 was the first year of implementation. Additional years will be presented as they become available 2019 2018 2017 2016
Actuarially Determined Contribution $ 122,161 $ 135,751 $ 214,138 $ 240,847 Contribution in Relation to the
Actuarially Determined Contribution 116,033 249,000 233,278 290,648 Contribution Deficiency (Excess) $ 6,128 $ (113,249) $ (19,140) $ (49,801) Actual Contributions as a Percentage of
Actuarial Determined Contributions -94.98% -183.42% -108.94% -120.68% Covered Payroll $ 1,762,930 $ 1,963,515 $ 1,906,325 $ 1,850,801 Contributions as a Percentage of Covered Payroll 6.58% 12.68% 12.24% 15.70% 106
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CITY OF SEASIDE
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
NOTE 1 BUDGETARY INFORMATION
Annual budgets are adopted for all governmental fund types on the modified accrual basis of accounting. The City of Seaside’s 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.
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, 2023 as follows:
Fund/Department
Final
Budget
Acutal
Amount
Exceeded
Budget
Presidio O&M Activities (POMA) Fund:
Public Works $976,703 $1,178,801 $202,098
Gax Tax Fund:
Public Works 1,876,923 2,017,497 140,574
Housing Collaborative Fund
Community Development 7,813 7,813 -
107
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SUPPLEMENTARY INFORMATION
Packet Page 136
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property - $ $ - $ - $ -
Intergovernmental Revenue - - - -
Total Revenues - - - -
EXPENDITURES
Capital Outlay 7,778,000 8,350,972 2,922,057 5,428,915
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (7,778,000) (8,350,972) (2,922,057) 5,428,915
OTHER FINANCING SOURCES (USES)
Transfers In 7,821,213 8,295,531 2,559,755 (5,735,776)
Total Other Financing
Sources (Uses) 7,821,213 8,295,531 2,559,755 (5,735,776) NET CHANGE IN FUND BALANCE $ 43,213 $ (55,441) (362,302) $ (306,861) Fund Balance - Beginning of Year (41,316)
FUND BALANCE - END OF YEAR $ (403,618)
CITY OF SEASIDE
Budgeted Amounts
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
110
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Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property 119 $ $ 119 $ 87 $ (32)
EXPENDITURES
Current:
Community Development 123 123 114 9
Debt Service:
Principal 245,000 245,000 245,000 -
Interest and Fiscal Charges 396,450 396,450 397,949 (1,499) Total Expenditures 641,573 641,573 643,063 (1,490)
EXCESS (DEFICIENCY) OF
REVENUES
OVER (UNDER) EXPENDITURES (641,454) (641,454) (642,976) (1,522)
OTHER FINANCING SOURCES (USES)
Transfers In 641,573 (641,573) 643,072 1,284,645
Transfers Out (570,000) (570,000) (1,238,875) (668,875) Total Other Financing
Sources (Uses) 71,573 (1,211,573) (595,803) 615,770
NET CHANGE IN FUND BALANCE $ (569,881) $ (1,853,027) (1,238,779) $ 614,248 Fund Balance - Beginning of Year 1,236,422
FUND BALANCE - END OF YEAR $ (2,357)
Budgeted Amounts
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
MEASURE X BOND FUND
YEAR ENDED JUNE 30, 2023
111
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NONMAJOR GOVERNMENTAL FUNDS
Packet Page 140
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CITY OF SEASIDE
FUND DESCRIPTIONS
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 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.
243,244 PRVNT Fund – This fund is used to account for the activities of the Peninsula Regional Violence and Narcotic Task Force.
115
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CITY OF SEASIDE
FUND DESCRIPTIONS (CONTINUED)
SPECIAL REVENUE FUNDS (CONTINUED)
COMMUNITY SERVICES FUND
246 City Affordable Housing Fund – This fund is used to account for funds received from transient occupancy tax from short term rentals designated to be used for programs which will increase affordable housing in the City.
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.
261 Developer Impact Fees – This fund accounts for fees collected from developers to be used to defray all or a portion of the cost of public facilities related to the development project.
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.
116
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CITY OF SEASIDE
FUND DESCRIPTIONS (CONTINUED)
SPECIAL REVENUE FUNDS (CONTINUED)
LAGUNA GRANDE PROJECT
103 Laguna Grande Parking Authority – This fund captures the cost for maintenance of the Laguna Grande Parking lot. Expenses are reimbursed by the five main businesses located on the lot.
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 (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. 333 LRA – Fort Ord – This fund is used to account for funds received from the Fort Ord Reuse Authority to be used in connection with activities the City performs as the Local Redevelopment Authority.
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 Ft. Ord.
336 FORA Eucalyptus Repair– This fund is used to account for funds received from the Fort Ord Reuse Authority to be used for repairs on Eucalyptus Road
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. 117
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CITY OF SEASIDE
FUND DESCRIPTIONS (CONTINUED)
SPECIAL REVENUE FUNDS (CONTINUED)
PUBLIC, EDUCATION AND GOVERNMENT (PEG) ACCESS FUND
291 PEG Access – This fund accounts for the 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.
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. 118
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CITY OF SEASIDE
FUND DESCRIPTIONS (CONTINUED)
SPECIAL REVENUE FUNDS (CONTINUED)
GENERAL CAPITAL PROJECT FUNDS
304 Patullo Swim Center – This fund accounts for capital improvement projects at Patello Swim Center. There are currently no active projects.
308 Seaside Library - CP – This fund accounts for capital improvement projects at the Seaside Library. There are currently no active projects. 342 Parks – Playground Improvement – This fund accounts for funds related to capital improvement projects at City parks and playgrounds
343 Miscellaneous Projects – This fund accounts for miscellaneous capital improvement projects.
344 Government Facilities – This fund accounts for the capital projects related to government facilities.
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. 357 Measure X Bond – This fund accounts for the escrow balance of the bond proceeds for the Measure X Streets project, as well as the debt service payments for the bond. The funding source for these debt services payments is a transfer from the Transportation Safety and Investment Plan fund.
119
Packet Page 146
Packet Page 147
Public Community Supplemental
Safety Services Law
Fund Fund Enforcement
ASSETS
Cash and Investments 345,448 $ $ 1,618,755 $ 417,899
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable 3,428 16,667 -
Deposits with Others - 112 -
Due from Other Governments 3,074 - -
Notes/Loans Receivable - - -
Land Held for Resale - - -
Lease Receivable - - -
Total Assets $ 351,950 $ 1,618,867 $ 434,566
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts Payable $ 17,802 $ 7,243 $ 104,128
Accrued Salaries and Benefits 35 2,632 (29)
Deposits from Others 97,500 46,051 -
Other Liabilities 156 - -
Due to Other Funds - - -
Total Liabilities 115,493 55,926 104,099
Deferred Inflows of Resources:
Leases related - - -
Unavailable Revenue - Intergovernmental - - -
Total Deferred inflows of resources - - -
Fund Balances:
Nonspendable - 112 -
Restricted 236,457 1,562,829 330,467
Committed - - -
Unassigned - - -
Total Fund Balances 236,457 1,562,941 330,467
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 351,950 $ 1,618,867 $ 434,566 Special Revenue
CITY OF SEASIDE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
121
Packet Page 148
Presidio O&M Laguna
Activities Proposition Grande
(POMA) Fund 172 Fund Project
ASSETS
Cash and Investments $ 462,881 $ 86,574 $ -
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable - 11,647 3,151
Deposits with Others - - -
Due from Other Governments 436,554 - -
Notes/Loans Receivable - - -
Land Held for Resale - - -
Lease Receivable - - -
Total Assets $ 899,435 $ 98,221 $ 3,151
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts Payable $ 12,466 $ - $ 3,151
Accrued Salaries and Benefits 10,725 - -
Deposits from Others - - -
Other Liabilities - - -
Due to Other Funds - - -
Total Liabilities 23,191 - 3,151
Deferred Inflows of Resources:
Leases related - - -
Unavailable Revenue - Intergovernmental 196,258 - -
Total Deferred inflows of resources 196,258 - -
Fund Balances:
Nonspendable - - -
Restricted - 98,221 -
Committed 679,986 - -
Unassigned - - -
Total Fund Balances 679,986 98,221 -
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 899,435 $ 98,221 $ 3,151 Special Revenue
CITY OF SEASIDE
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
122
Packet Page 149
Community FORA
Development Gas Tax Non-Bond
Block Grant Fund Fund
ASSETS
Cash and Investments $ 1,647 $ 1,501,279 $ 2,998,073
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable 362,937 778,312 110,502
Deposits with Others - - -
Due from Other Governments - - -
Notes/Loans Receivable 71,740 - -
Land Held for Resale - - -
Lease Receivable 6,113,538 - -
Total Assets $ 6,549,862 $ 2,279,591 $ 3,108,575
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts Payable $ 110,927 $ 54,133 $ 14,076
Accrued Salaries and Benefits 215 10,024 6,243
Deposits from Others 500 346 -
Other Liabilities - - -
Due to Other Funds - - -
Total Liabilities 111,642 64,503 20,319
Deferred Inflows of Resources:
Leases related 5,917,279 - -
Unavailable Revenue - Intergovernmental - 157,311 -
Total Deferred inflows of resources 5,917,279 157,311 - Fund Balances:
Nonspendable - - -
Restricted 520,941 2,057,777 3,088,256
Committed - -
Unassigned - - -
Total Fund Balances 520,941 2,057,777 3,088,256
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 6,549,862 $ 2,279,591 $ 3,108,575
CITY OF SEASIDE
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue
123
Packet Page 150
Housing Disability
Settlement Access PEG
Fund Fee Access Fund
ASSETS
Cash and Investments 1,186,011 $ 12,383 $ 39,298 $
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable - - 10,042
Deposits with Others - - -
Due from Other Governments - - -
Notes/Loans Receivable - - -
Land Held for Resale - - -
Lease Receivable - - -
Total Assets $ 1,186,011 $ 12,383 $ 49,340
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts Payable $ - $ 8,968 $ 20,987
Accrued Salaries and Benefits - - -
Deposits from Others - - -
Other Liabilities - - -
Due to Other Funds - - -
Total Liabilities - 8,968 20,987
Deferred Inflows of Resources:
Leases related - - -
Unavailable Revenue - Intergovernmental - - -
Total Deferred inflows of resources - - -
Fund Balances:
Nonspendable - - -
Restricted - 3,415 28,353
Committed 1,186,011 - -
Unassigned - - -
Total Fund Balances 1,186,011 3,415 28,353
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 1,186,011 $ 12,383 $ 49,340
CITY OF SEASIDE
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue
124
Packet Page 151
SAFER Transportation
Recreation FEMA Safety and
Endowment Grant Fund Invest Plan
ASSETS
Cash and Investments 159,891 $ - $ $ 1,337,745
Restricted Cash and Investments - - -
Cash with Fiscal Agent - - -
Accounts Receivable - 409 331,056
Deposits with Others - - -
Due from Other Governments - - -
Notes/Loans Receivable - - -
Land Held for Resale - - -
Lease Receivable - - -
Total Assets $ 159,891 $ 409 $ 1,668,801
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts Payable $ - $ - $ -
Accrued Salaries and Benefits - 218 -
Deposits from Others - - -
Other Liabilities - - -
Due to Other Funds - 167,208 -
Total Liabilities - 167,426 -
Deferred Inflows of Resources:
Leases related - - -
Unavailable Revenue - Intergovernmental - - -
Total Deferred inflows of resources - - -
Fund Balances:
Nonspendable - - -
Restricted 159,891 - 1,668,801
Committed - - -
Unassigned - (167,017) -
Total Fund Balances 159,891 (167,017) 1,668,801
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 159,891 $ 409 $ 1,668,801
CITY OF SEASIDE
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue
125
Packet Page 152
Capital
Special Revenue Projects
Housing Housing General
Successor Stormwater Collaborative Capital
Fund Fund Fund Projects
ASSETS
Cash and Investments 5,034,303 $ - $ $ - $ -
Restricted Cash and Investments - - - -
Cash with Fiscal Agent - - - -
Accounts Receivable 1,575 151,250 - -
Deposits with Others - - - -
Due from Other Governments - 13,420 - -
Notes/Loans Receivable 1,335,601 - - -
Land Held for Resale 658,068 - - -
Lease Receivable - - - -
Total Assets $ 7,029,547 $ 164,670 $ - $ -
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts Payable $ 8,879 $ 101,412 $ - $ 341,098
Accrued Salaries and Benefits - 12,052 - -
Deposits from Others - - - -
Other Liabilities - - - -
Due to Other Funds - 398,433 7,813 166,932
Total Liabilities 8,879 511,897 7,813 508,030
Deferred Inflows of Resources:
Leases related - - - -
Unavailable Revenue - Intergovernmental - 11,000 - -
Total Deferred inflows of resources - 11,000 - -
Fund Balances:
Nonspendable - - - -
Restricted 7,020,668 -
Committed - - - -
Unassigned - (358,227) (7,813) (508,030)
Total Fund Balances 7,020,668 (358,227) (7,813) (508,030) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 7,029,547 $ 164,670 $ - $ -
CITY OF SEASIDE
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
126
Packet Page 153
Pension Cutino Park
Obligation Bond
Fund Fund Total
ASSETS
Cash and Investments - $ $ 87,476 $ 15,289,663
Restricted Cash and Investments 37,168 - 37,168
Cash with Fiscal Agent - 1,028,759 1,028,759
Accounts Receivable - - 1,780,976
Deposits with Others - - 112
Due from Other Governments - - 453,048
Notes/Loans Receivable - - 1,407,341
Land Held for Resale - - 658,068
Lease Receivable - - 6,113,538
Total Assets $ 37,168 $ 1,116,235 $ 26,768,673
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts Payable $ - $ - $ 805,270
Accrued Salaries and Benefits - - 42,115
Deposits from Others - - 144,397
Other Liabilities - - 156
Due to Other Funds 161 - 740,547
Total Liabilities 161 - 1,732,485
Deferred Inflows of Resources:
Leases related - - 5,917,279
Unavailable Revenue - Intergovernmental - - 364,569
Total Deferred inflows of resources - - 6,281,848
Fund Balances:
Nonspendable - - 112
Restricted 37,007 1,116,235 17,929,318
Committed - - 1,865,997
Unassigned - - (1,041,087)
Total Fund Balances 37,007 1,116,235 18,754,340
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 37,168 $ 1,116,235 $ 26,768,673 Debt Service
CITY OF SEASIDE
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
127
Packet Page 154
CITY OF SEASIDE
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Special Revenue
Public Community Supplemental
Safety Services Law
Fund Fund Enforcement
REVENUES
Taxes - $ $ - $ -
Use of Money and Property 4,604 17,888 4,982
Intergovernmental Revenue 47,913 - 156,938
Charges for Services - 22,526 -
Other revenue 176 172,429 -
Total Revenues 52,693 212,843 161,920
EXPENDITURES
Current:
Public Safety 76,382 - 118,471
Recreation - 181,763 -
Public Works - - -
Community Development - - -
Capital Outlay - - -
Debt Service:
Principal - - -
Interest and Fiscal Charges - - -
Total Expenditures 76,382 181,763 118,471
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (23,689) 31,080 43,449
OTHER FINANCING SOURCES (USES)
Transfers In - 366,220 -
Transfers Out (138,392) - -
Total Other Financing
Sources (Uses) - 227,828 -
NET CHANGE IN FUND BALANCES (23,689) 258,908 43,449
Fund Balances - Beginning of Year 260,146 1,304,033 287,018 FUND BALANCES - END OF YEAR $ 236,457 $ 1,562,941 $ 330,467 128
Packet Page 155
CITY OF SEASIDE
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Special Revenue
Presidio O&M Laguna
Activities Proposition Grande
(POMA) Fund 172 Fund Project
REVENUES
Taxes $ - $ - $ -
Use of Money and Property 6,942 699 -
Intergovernmental Revenue 138,318 - -
Charges for Services 1,294,740 - -
Other revenue - - 3,167
Total Revenues 1,301,682 139,017 3,167
EXPENDITURES
Current:
Public Safety 93,370 - -
Recreation - - -
Public Works 1,178,801 - -
Community Development - - -
Capital Outlay - - -
Debt Service:
Principal - - -
Interest and Fiscal Charges - - -
Total Expenditures 1,178,801 93,370 -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 122,881 45,647 3,167
OTHER FINANCING SOURCES (USES)
Transfers In - - 2,202
Transfers Out - - -
Total Other Financing
Sources (Uses) - - 2,202
NET CHANGE IN FUND BALANCES 122,881 45,647 5,369
Fund Balances - Beginning of Year, Restated 557,105 52,574 (5,369) FUND BALANCES - END OF YEAR $ 679,986 $ 98,221 $ -
129
Packet Page 156
CITY OF SEASIDE
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Special Revenue
Community FORA
Development Gas Tax Non-Bond
Block Grant Fund Fund
REVENUES
Taxes - $ $ - $ -
Use of Money and Property 302,959 26,695 28,122
Intergovernmental Revenue 648,302 2,169,483 387,945
Charges for Services - - -
Other revenue 179 15,419 -
Total Revenues 951,440 2,211,597 416,067
EXPENDITURES
Current:
Public Safety - - -
Recreation - - -
Public Works 2,017,497 - 560,498
Community Development 253,214 - -
Capital Outlay - - -
Debt Service:
Principal - 62,052 648
Interest and Fiscal Charges - 9,864 1,211
Total Expenditures 253,214 2,089,413 562,357
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 698,226 122,184 (146,290)
OTHER FINANCING SOURCES (USES)
Transfers In - 794,922 -
Transfers Out (557,212) (410,671) -
Total Other Financing
Sources (Uses) (557,212) 384,251 -
NET CHANGE IN FUND BALANCES 141,014 506,435 (146,290)
Fund Balances - Beginning of Year, Restated 379,927 1,551,342 3,234,546 FUND BALANCES - END OF YEAR $ 520,941 $ 2,057,777 $ 3,088,256 130
Packet Page 157
CITY OF SEASIDE
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Special Revenue
Housing Disability
Settlement Access PEG
Fund Fee Access Fund
REVENUES
Taxes - $ $ - $0
Use of Money and Property 15,421 - -
Intergovernmental Revenue - - -
Charges for Services - 41,139 -
Other revenue - - -
Total Revenues 15,421 - 41,139
EXPENDITURES
Current:
Public Safety - - -
Recreation - - -
Public Works - - -
Community Development - 20,985 -
Capital Outlay - - -
Debt Service:
Principal - - -
Interest and Fiscal Charges - - -
Total Expenditures - 20,985 -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 15,421 20,154 -
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
NET CHANGE IN FUND BALANCES 15,421 20,154 -
Fund Balances - Beginning of Year 1,170,590 3,415 8,199 FUND BALANCES - END OF YEAR $ 1,186,011 $ 3,415 $ 28,353 131
Packet Page 158
CITY OF SEASIDE
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Special Revenue
SAFER Transportation
Recreation FEMA Safety and
Endowment Grant Fund Invest Plan
REVENUES
Taxes - $ $ 1,273,993 - $
Use of Money and Property - - 29,739
Intergovernmental Revenue - 1,264 -
Charges for Services - - -
Other revenue 2,729 - -
Total Revenues 2,729 1,264 1,303,732
EXPENDITURES
Current:
Public Safety - 3,107 -
Recreation - - -
Public Works - - 5,316
Community Development - - -
Capital Outlay - - -
Debt Service:
Principal - - -
Interest and Fiscal Charges - - -
Total Expenditures - 3,107 5,316
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,729 (1,843) 1,298,416
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out (55,758) (1,501,172) -
Total Other Financing
Sources (Uses) (55,758) (1,501,172) -
NET CHANGE IN FUND BALANCES (53,029) (1,843) (202,756)
Fund Balances - Beginning of Year 212,920 (165,174) 1,871,557 FUND BALANCES - END OF YEAR $ 159,891 $ (167,017) $ 1,668,801 132
Packet Page 159
CITY OF SEASIDE
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Capital
Special Revenue Projects
Housing Housing General
Successor Stormwater Collaborative Capital
Fund Fund Fund Projects
REVENUES
Taxes - $ $ - $ - $ -
Use of Money and Property 82,927 - - 696
Intergovernmental Revenue 428,954 - 142,362 -
Charges for Services - (1,012) - -
Other revenue 98,845 163,410 - -
Total Revenues 181,772 591,352 143,058 -
EXPENDITURES
Current:
Public Safety - - - -
Recreation - - - -
Public Works 1,907,180 - - -
Community Development 74,721 - 7,813 2,331,840
Capital Outlay - - 498,276 -
Debt Service:
Principal 61,415 - - -
Interest and Fiscal Charges - 3,004 - -
Total Expenditures 74,721 1,971,599 7,813 2,830,116
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 107,051 (1,380,247) (7,813) (2,687,058)
OTHER FINANCING SOURCES (USES)
Transfers In 1,040,793 - 1,640,844 -
Transfers Out - - - -
Total Other Financing
Sources (Uses) - 1,040,793 1,640,844 -
NET CHANGE IN FUND BALANCES 107,051 (339,454) (7,813) (1,046,214) Fund Balances - Beginning of Year 6,913,617 (18,773) 538,184 - FUND BALANCES - END OF YEAR $ 7,020,668 $ (358,227) $ (7,813) $ (508,030) 133
Packet Page 160
CITY OF SEASIDE
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Debt Service Funds
Pension Cutino Park
Obligation Bond
Bonds Fund Total
REVENUES
Taxes $ - $ 1,273,993 - $
Use of Money and Property 22,383 53 544,110
Intergovernmental Revenue - 4,121,479 -
Charges for Services - 1,357,393 -
Other revenue 808,488 1,264,842 -
Total Revenues 830,871 53 8,561,817
EXPENDITURES
Current:
Public Safety - - 291,330
Recreation - - 181,763
Public Works - 5,669,292 -
Community Development 2,996 114 2,691,683
Capital Outlay - - 498,276
Debt Service: -
Principal 690,000 200,000 1,014,115
Interest and Fiscal Charges 115,987 177,619 307,685
Total Expenditures 808,983 377,733 10,654,144
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 21,888 (377,680) (2,092,327)
OTHER FINANCING SOURCES (USES)
Transfers In - 465,205 4,310,186
Transfers Out - - (2,663,205)
Total Other Financing
Sources (Uses) - 465,205 1,646,981
NET CHANGE IN FUND BALANCES 21,888 87,525 (445,346)
Fund Balances - Beginning of Year 15,119 1,028,710 19,199,686 FUND BALANCES - END OF YEAR $ 37,007 $ 1,116,235 $ 18,754,340 134
Packet Page 161
Variance with
Original Final Actual Final Budget
REVENUES
Fines and Penalties - $ $ - -$ $ -
Use of Money and Property 25 25 4,604 4,579
Intergovernmental Revenues 12,622 12,622 47,913 35,291
Other Revenue - - 176 176
Total Revenues 12,647 12,647 52,693 40,046
EXPENDITURES
Current:
Public Safety 85,400 115,400 76,382 39,018
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (72,753) (102,753) (23,689) 79,064
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Total Other Financing
Sources (Uses) - - - -
NET CHANGE IN FUND BALANCE $ (72,753) $ (102,753) (23,689) $ 79,064 Fund Balance - Beginning of Year 260,146
FUND BALANCE - END OF YEAR $ 236,457
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
135
Packet Page 162
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property 269 $ $ 269 $ 17,888 $ 17,619 Charges for Services 24,000 24,000 22,526 (1,474)
Other Revenues - - 172,429 172,429
Total Revenues 24,269 24,269 212,843 188,574
EXPENDITURES
Current:
Recreation 244,958 244,958 181,763 63,195
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (220,689) (220,689) 31,080 251,769
OTHER FINANCING SOURCES (USES)
Transfers In 307,097 307,097 366,220 59,123
Transfers Out (705,000) (705,000) (138,392) 566,608
Total Other Financing
Sources (Uses) (397,903) (397,903) 227,828 625,731
NET CHANGE IN FUND BALANCE $ (618,592) $ (618,592) 258,908 $ 877,500 Fund Balance - Beginning of Year 1,304,033
FUND BALANCE - END OF YEAR $ 1,562,941
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY SERVICES FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
136
Packet Page 163
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property - $ $ 4,982 - $ $ 4,982
Intergovernmental Revenues 160,000 160,000 156,938 (3,062) Total Revenues 160,000 160,000 161,920 1,920
EXPENDITURES
Current:
Public Safety 250,000 250,000 118,471 131,529
NET CHANGE IN FUND BALANCE $ (90,000) $ (90,000) 43,449 $ 133,449 Fund Balance - Beginning of Year 287,018
FUND BALANCE - END OF YEAR $ 330,467
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
SUPPLEMENTAL LAW ENFORCEMENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
137
Packet Page 164
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property 1,500 $ 1,500 $ 6,942 $ 5,442 $ Charges for Services 946,400 946,400 1,294,740 348,340
Total Revenues 947,900 947,900 1,301,682 353,782
EXPENDITURES
Current:
Public Works 976,703 976,703 1,178,801 (202,098)
Total Expenditures 976,703 976,703 1,178,801 (202,098)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (28,803) (28,803) 122,881 151,684
OTHER FINANCING SOURCES (USES)
Transfers Out - - - -
Total Other Financing
Sources (Uses) - - - -
NET CHANGE IN FUND BALANCE $ (28,803) $ (28,803) 122,881 $ 151,684 Fund Balance - Beginning of Year 557,105
FUND BALANCE - END OF YEAR $ 679,986
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
PRESIDIO O&M ACTIVITIES (POMA) FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
138
Packet Page 165
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property 6 $ $ 6 $ 699 $ 693
Intergovernmental Revenues 139,586 139,586 138,318 (1,268) Total Revenues 139,592 139,592 139,017 (575)
EXPENDITURES
Current:
Public Safety 98,948 98,948 93,370 5,578
NET CHANGE IN FUND BALANCE $ 40,638 $ 40,638 45,647 $ (6,846) Fund Balance - Beginning of Year 52,574
FUND BALANCE - END OF YEAR $ 98,221
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
PROPOSITION 172 FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
139
Packet Page 166
Variance with
Original Final Actual Final Budget
REVENUES
Other Revenue - $ $ 3,167$ - $ 3,167
EXPENDITURES
Current:
Public Works - - - -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - 3,167 3,167
OTHER FINANCING SOURCES (USES)
Transfers In 5,293 5,293 2,202 (3,091)
Total Other Financing
Sources (Uses) 5,293 5,293 2,202 (3,091)
NET CHANGE IN FUND BALANCE $ 5,293 $ 5,293 5,369 $ 76
Fund Balance - Beginning of Year (5,369)
FUND BALANCE - END OF YEAR $ -
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
LAGUNA GRANDE PROJECT FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
140
Packet Page 167
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property 105,000 $ 105,000 $ 302,959 $ 197,959 $ Intergovernmental Revenues 375,000 375,000 648,302 273,302 Other Revenue - - 179 179
Total Revenues 480,000 480,000 951,440 471,440
EXPENDITURES
Current:
Community Development 412,668 412,668 253,214 159,454
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 67,332 67,332 698,226 630,894
OTHER FINANCING SOURCES (USES)
Transfers Out (625,177) (625,177) (557,212) 67,965
Total Other Financing
Sources (Uses) (625,177) (625,177) (557,212) 67,965
NET CHANGE IN FUND BALANCE $ (557,845) $ (557,845) 141,014 $ 698,859 Fund Balance - Beginning of Year 379,927
FUND BALANCE - END OF YEAR $ 520,941
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
141
Packet Page 168
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ 550 $ 550 $ 26,695 $ 26,145 Intergovernmental Revenues 5,520,036 5,520,036 2,169,483 (3,350,553) Other Revenue - - 15,419 15,419
Total Revenues 5,520,586 5,520,586 2,211,597 (3,308,989)
EXPENDITURES
Current:
Public Works 1,849,334 1,876,923 2,017,497 (140,574)
Debt Service:
Principal 80,003 80,003 62,052 17,951
Interest and Fiscal Charges 1,094 1,094 9,864 (8,770)
Total Expenditures 1,930,431 1,958,020 2,089,413 (131,393)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,590,155 3,562,566 122,184 (3,177,596)
OTHER FINANCING SOURCES (USES)
Transfers In - - 794,922 794,922
Transfers Out (4,145,867) (4,311,569) (410,671) 3,900,898 Total Other Financing
Sources (Uses) (4,145,867) (4,311,569) 384,251 4,695,820 NET CHANGE IN FUND BALANCE $ (555,712) $ (749,003) 506,435 $ 1,518,224 Fund Balance - Beginning of Year 1,551,342
FUND BALANCE - END OF YEAR $ 2,057,777
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
GAS TAX FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
142
Packet Page 169
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property - $ $ - $ 28,122 $ 28,122
Intergovernmental Revenues - 387,945 - 387,945
Total Revenues - 416,067 - 416,067
EXPENDITURES
Current:
Public Works 1,738,282 1,817,474 560,498 1,256,976
Debt Service:
Principal - - 648 (648)
Interest and Fiscal Charges - - 1,211 (1,211)
Total Expenditures 1,738,282 1,817,474 562,357 1,255,117 NET CHANGE IN FUND BALANCE $ (1,738,282) $ (1,817,474) (146,290) $ 1,671,184 Fund Balance - Beginning of Year 3,234,546
FUND BALANCE - END OF YEAR $ 3,088,256
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
FORA NON-BOND FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
143
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Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property - $ $ 3,572 $ 15,421 $ 11,849 Total Revenues - 3,572 15,421 11,849
EXPENDITURES
Current:
Community Development - - - -
Total Expenditures - - - -
NET CHANGE IN FUND BALANCE $ - $ 3,572 15,421 $ 11,849
Fund Balance - Beginning of Year 1,170,590
FUND BALANCE - END OF YEAR $ 1,186,011
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
HOUSING SETTLEMENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
144
Packet Page 171
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
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
DISABILITY ACCESS FEE FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
145
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Variance with
Original Final Actual Final Budget
REVENUES
Charges for Services 50,000 $ $ 50,000 $ 41,139 $ (8,861)
EXPENDITURES
Current:
Community Development 50,000 50,000 20,985 29,015
NET CHANGE IN FUND BALANCE $ - $ - 20,154 $ 20,154
Fund Balance - Beginning of Year 8,199
FUND BALANCE - END OF YEAR $ 28,353
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
PEG ACCESS FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
146
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Variance with
Original Final Actual Final Budget
REVENUES
Other revenue - $ $ - $ 2,729 $ 2,729
OTHER FINANCING SOURCES (USES)
Transfers Out $ (50,000) $ (50,000) (55,758) (5,758)
Total Other Financing
Sources (Uses) (50,000) (50,000) (55,758) (5,758)
NET CHANGE IN FUND BALANCE $ (50,000) $ (50,000) (53,029) $ (3,029) Fund Balance - Beginning of Year 212,920
FUND BALANCE - END OF YEAR $ 159,891
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
RECREATION ENDOWMENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
147
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Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental Revenues - $ $ - $ 1,264 $ 1,264
EXPENDITURES
Current:
Public Safety 12,961 12,961 3,107 9,854
NET CHANGE IN FUND BALANCE $ (12,961) $ (12,961) (1,843) $ 11,118 Fund Balance - Beginning of Year (165,174)
FUND BALANCE - END OF YEAR $ (167,017)
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
SAFER FEMA GRANT FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
148
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Variance with
Original Final Actual Final Budget
REVENUES
Taxes 1,049,553 $ 1,049,553 $ 1,273,993 $ 224,440 $
Use of Money and Property - - 29,739 29,739
Total Revenues 1,049,553 1,049,553 1,303,732 254,179
EXPENDITURES
Current:
Public Works 5,349 5,349 5,316 33
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,044,204 1,044,204 1,298,416 254,146
OTHER FINANCING SOURCES (USES)
Transfers Out (3,011,706) (3,173,706) (1,501,172) 1,672,534 Total Other Financing
Sources (Uses) (3,011,706) (3,173,706) (1,501,172) 1,672,534 NET CHANGE IN FUND BALANCE $ (1,967,502) $ (2,129,502) (202,756) $ 1,926,680 Fund Balance - Beginning of Year 1,871,557
FUND BALANCE - END OF YEAR $ 1,668,801
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION SAFETY AND INVESTMENT PLAN FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
149
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Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ 20,820 20,820 $ 82,927 $ 62,107 $ Intergovernmental Revenues 750,000 750,000 - (750,000)
Other Revenues 30,000 30,000 98,845 68,845
Total Revenues 800,820 800,820 181,772 (619,048)
EXPENDITURES
Current:
Community Development 1,323,981 1,403,981 74,721 1,329,260 NET CHANGE IN FUND BALANCE $ (523,161) $ (603,161) 107,051 $ 710,212 Fund Balance - Beginning of Year 6,913,617
FUND BALANCE - END OF YEAR $ 7,020,668
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
HOUSING SUCCESSOR FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
150
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Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental Revenues 524,464 $ 524,464 $ 428,954 $ (95,510) $ Charges for services - - (1,012) (1,012)
Other Revenue 18,000 18,000 163,410 145,410
Total Revenues 542,464 542,464 591,352 48,888
EXPENDITURES
Current:
Public Works 2,010,320 3,122,842 1,907,180 1,215,662
Debt Service:
Principal 61,415 61,415 61,415 -
Interest and Fiscal Charges 3,004 3,004 3,004 -
Total Expenditures 2,074,739 3,187,261 1,971,599 1,215,662
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,532,275) (2,644,797) (1,380,247) 1,264,550
OTHER FINANCING SOURCES (USES)
Transfers In 1,275,575 1,750,359 1,040,793 (709,566)
Transfers Out - - - -
Total Other Financing
Sources (Uses) 1,275,575 1,750,359 1,040,793 (709,566)
NET CHANGE IN FUND BALANCE $ (256,700) $ (894,438) (339,454) $ 554,984 Fund Balance - Beginning of Year (18,773)
FUND BALANCE - END OF YEAR $ (358,227)
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
STORMWATER FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
151
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Variance with
Original Final Actual Final Budget
EXPENDITURES
Current:
Community Development - - 7,813 (7,813)
Total Expenditures - - 7,813 (7,813)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - (7,813) (7,813)
NET CHANGE IN FUND BALANCE $ - $ - (7,813) $ (7,813)
Fund Balance - Beginning of Year -
FUND BALANCE - END OF YEAR $ (7,813)
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
HOUSING COLLABORATIVE FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
152
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Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property - $ $ - $ 696 $ 696
Charges for services 87,136 87,136 142,362 55,226
Total Revenues 87,136 87,136 143,058 55,922
EXPENDITURES
Current:
Community Development 6,469,900 8,096,353 2,331,840 5,764,513 Capital Outlay 971,658 1,716,658 498,276 1,218,382
Total Expenditures 7,441,558 9,813,011 2,830,116 6,982,895
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (7,354,422) (9,725,875) (2,687,058) 7,038,817
OTHER FINANCING SOURCES (USES)
Transfers In 6,636,735 - 1,640,844 1,640,844
Transfers Out - - - -
Total Other Financing
Sources (Uses) 6,636,735 - 1,640,844 1,640,844
NET CHANGE IN FUND BALANCE $ (717,687) $ (9,725,875) (1,046,214) $ 8,679,661 Fund Balance - Beginning of Year 538,184
FUND BALANCE - END OF YEAR $ (508,030)
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
GENERAL CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
153
Packet Page 180
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property 9 $ $ 9 $ 22,383 $ 22,374
Other Revenue 810,986 810,986 808,488 (2,498)
Total Revenues 810,995 810,995 830,871 19,876
EXPENDITURES
Current:
Community Development 3,280 3,280 2,996 284
Debt Service:
Principal 690,000 690,000 690,000 -
Interest and Fiscal Charges 115,987 115,987 115,987 -
Total Expenditures 809,267 809,267 808,983 284
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,728 1,728 21,888 19,592
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Total Other Financing
Sources (Uses) - - - -
NET CHANGE IN FUND BALANCE $ 1,728 $ 1,728 21,888 $ 19,592 Fund Balance - Beginning of Year 15,119
FUND BALANCE - END OF YEAR $ 37,007
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
PENSION OBLIGATION BONDS FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
154
Packet Page 181
Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property 9 $ $ 13 $ 53 $ 40
Total Revenues 9 13 53 40
EXPENDITURES
Current:
Community Development 3,280 404 114 290
Debt Service:
Principal 690,000 200,000 200,000 -
Interest and Fiscal Charges 115,987 176,119 177,619 (1,500) Total Expenditures 809,267 376,523 377,733 (1,210)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (809,258) (376,510) (377,680) (1,170)
OTHER FINANCING SOURCES (USES)
Transfers In - 376,523 465,205 88,682
Total Other Financing
Sources (Uses) - 376,523 465,205 88,682
NET CHANGE IN FUND BALANCE $ (809,258) $ 13 87,525 $ 87,512 Fund Balance - Beginning of Year 1,028,710
FUND BALANCE - END OF YEAR $ 1,116,235
CITY OF SEASIDE
BUDGETARY COMPARISON SCHEDULE
CUTINO PARK BOND FUND
FOR THE FISCAL YEAR ENDED JUNE 30,2023
Budgeted Amounts
155
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INTERNAL SERVICE FUNDS
Packet Page 184
Packet Page 185
CITY OF SEASIDE
FUND DESCRIPTIONS
INTERNAL SERVICE FUNDS
Internal service funds account for the financing of goods and/or services provided by one departments to other departments within the City. All expenses are charges to the operating departments through a monthly transfer.
501 Equipment Maintenance Fund
502 Insurance Fund
503 Management Information Systems Fund
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JUNE 30, 2023
Management
Self- Vehicle Information
Insurance Maintenance Systems
Fund Fund Fund Total
ASSETS
Current Assets:
Cash and Investments 2,231,931 $ - $ 374,020 $ $ 2,605,951 Restricted Cash and Investments 29,630 - - 29,630
Accounts Receivable 47,428 - - 47,428
Total current assets 2,308,989 - 374,020 2,683,009
Capital Assets:
Depreciable - 276,784 533,424 810,208
Less: Accumulated Depreciation - (212,485) (372,341) (584,826) Total Capital Assets, net - 64,299 161,083 225,382
Total Assets 2,308,989 64,299 535,103 2,908,391
LIABILITIES
Current Liabilities:
Accounts Payable - 46,184 25,097 71,281
Accrued Salaries and Benefits - - 9,904 9,904
Interest Payable - - 95 95
Compensated Absences - 2,662 9,922 12,584
Claims Payable 73,515 - - 73,515
Leases - 12,724 - 12,724
Due to Other Funds - 42,423 - 42,423
Total Current Liabilities 73,515 103,993 45,018 222,526 Long-Term Liabilities:
Compensated Absences - 20,612 29,741 50,353
Claims Payable 1,002,572 - 1,002,572 -
Total Long-Term Liabilities 1,002,572 20,612 29,741 1,052,925 Total Liabilities 1,076,087 124,605 74,759 1,275,451
NET POSITION
Net Investment in Capital Assets - 51,575 161,083 212,658 Unrestricted 1,232,902 (111,881) 299,261 1,420,282
Total Net Position $ 1,232,902 $ (60,306) $ 460,344 $ 1,632,940
CITY OF SEASIDE
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
160
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Management
Self- Vehicle Information
Insurance Maintenance Systems
Fund Fund Fund Total
OPERATING REVENUES
Charges for Services $ 3,825,869 $650,133 831,301 $ $ 5,307,303 Other Revenues 3,775 (5,411) - (1,636)
Total Operating Revenues 3,829,644 650,133 825,890 5,305,667
OPERATING EXPENSES
Salaries and Benefits - 331,032 389,543 720,575
Services and Supplies 165,385 702,793 346,648 1,214,826 Insurance 3,186,385 - - 3,186,385
Utilities - 4,546 104,640 109,186
Claims and Judgements 48,203 - - 48,203
Depreciation - 16,075 47,522 63,597
Total Operating Expenses 3,399,973 1,054,446 888,353 5,342,772 OPERATING INCOME (LOSS) 429,671 (404,313) (62,463) (37,105)
NONOPERATING REVENUES (EXPENSES)
Investment Earnings 14,292 1,411 4,697 20,400
Interest Expense - (1,021) - (1,021)
Total Nonoperating Revenues
(Expense) 14,292 390 4,697 19,379
INCOME (LOSS) BEFORE TRANSFERS 443,963 (403,923) (57,766) (17,726) Transfers Out - - - -
CHANGE IN NET POSITION 443,963 (403,923) (57,766) (17,726) Net Position - Beginning of Year 788,939 343,617 518,110 1,650,666 NET POSITION (DEFICIT) - END OF YEAR $ 1,232,902 $ (60,306) $ 460,344 $ 1,632,940
CITY OF SEASIDE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
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Management
Self- Vehicle Information
Insurance Maintenance Systems
Fund Fund Fund Total
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash Receipts from Interfund Services
Provided $ 650,133 3,828,007 $ 825,890 $ 5,304,030 $
Cash Paid to Employees for Services - (327,300) (381,611) (708,911) Cash Paid to Suppliers for Goods and
Services (3,489,015) (720,901) (429,764) (4,639,680)
Net Cash Provided (Used) by
Operating Activities 338,992 (398,068) 14,515 (44,561)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Due To Other Funds - 42,423 - 42,423
Net Cash Provided (Used) by
Noncapital Financing Activities - 42,423 - 42,423
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets - (5,282) (43,991) (49,273) Net Cash Provided (Used) by
Capital and Related Financing
Activities - (5,282) (43,991) (49,273)
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest Received (Paid) 14,292 390 4,697 19,379
Net Cash Provided (Used) by
Investing Activities 14,292 390 4,697 19,379
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 353,284 (360,537) (24,779) (32,032) Cash and Cash Equivalents, Beginning 1,908,277 360,537 398,799 2,667,613 CASH AND CASH EQUIVALENTS, ENDING $ 2,261,561 $ - $ 374,020 $ 2,635,581
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING
ACTIVATES
Operating Income (Loss) $ 429,671 $ (404,313) $ (62,463) $ (37,105) Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Depreciation - 16,075 47,522 63,597
Changes in Assets, Deferred Inflows of
Resources, Liabilities, and Deferred
Outflows of Resources (Increase) Decrease
in:
(Increase) Decrease in:
Accounts Receivable (1,637) - - (1,637)
Increase (Decrease) in:
Accounts and Interest Payable - (13,562) 21,524 7,962
Accrued Salaries - - 4,333 4,333
Compensated Absences - 3,732 3,599 7,331
Claims Liability (89,042) - - (89,042)
Net Cash Provided (Used) by
Operating Activities $ 338,992 $ (398,068) $ 14,515 $ (44,561)
CITY OF SEASIDE
COMBINING STATEMENT OF CASHFLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2023
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CITY OF SEASIDE
FUND DESCRIPTIONS
CUSTODIAL FUNDS
The Custodial Funds report resources, not in a trust, that are held by the City for other parties outside of the City:
• The Seaside County Sanitation District (SCSD) 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. Starting in the fiscal year 2022, the District is presented separately as a Custodial Fund because its board is not substantively the same as the City's governing board, and it does not provide services exclusively to the City, and the City Council does not have controlling power over the Board of the district.
Financial statements or financial information for the District may be obtained from the City at 440 Harcourt Avenue, Seaside, California 93955.
• The Watermaster custodial fund reports the fiduciary activities of the Seaside Groundwater Basin Watermaster. The Seaside Groundwater Basin Watermaster was created after a 2006 California Superior Court ruling ordered reduced groundwater pumping from the basin. The resources of the Seaside Groundwater Basin Watermaster are held in trust by the City of Seaside.
Packet Page 190
Seaside County Watermaster Total Custodial
Sanitation District Fund Funds
ASSETS
Cash and Investments 2,686,488 $ 1,092,092 $ 3,778,580 $ Accounts Receivable 834,212 - 834,212
Total Assets 3,520,700 1,092,092 4,612,792
LIABILITIES
Accounts Payable 55,293 13,832 69,125
Total Liabilities 55,293 13,832 69,125
NET POSITION
Restricted for: Individuals, Organizations, and
Other Governments 3,465,407 1,078,260 4,543,667
Total Net Position $ 3,465,407 $ 1,078,260 $ 4,543,667
CITY OF SEASIDE
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2023
164
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Seaside County Watermaster Total Custodial
Sanitation District Fund Funds
ADDITIONS
Property taxes 640,022 $ - $ $ 640,022
Services charges 2,230,938 - 2,230,938
Miscellaneous revenue 47,119 - 47,119
Contributions from other local governments and developers - 363,112 363,112 Total Additions 2,918,079 363,112 3,281,191
DEDUCTIONS
Services expenses 1,781,845 - 1,781,845
Payments to other local governments and developers - 261,756 261,756 Total Deductions 1,781,845 261,756 2,043,601
CHANGE IN NET POSITION 1,136,234 101,356 1,237,590
Net Position, Beginning of Year, as restated 2,329,173 976,904 3,306,077 NET POSITION, END OF YEAR $ 3,465,407 $ 1,078,260 $ 4,543,667
CITY OF SEASIDE
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
165
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STATISTICAL SECTION
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CITY OF SEASIDE
STATISTICAL SECTION OVERVIEW
FISCAL YEAR 2022-2023
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 #
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 1
Changes in Net Position 2
Fund Balances – Governmental Funds 3
Changes in Fund Balances – Governmental Funds 4
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 5
Governmental Funds – Taxes by Type 6
Assessed Valuation, Tax Rates, and Tax Levies 7
Principal Property Tax Payers 8
Top 25 Sales Tax Producers 9
Debt Capacity
These schedules present information to help the reader 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 10
Property Tax Levies and Collections 11
Legal Debt Service Margin Information 12
Outstanding Debt Information 13
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.
Demographic and Economic Statistics 14
Principal Employers 15
Full Time Equivalent City Employees by Function 16
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 17 Miscellaneous Statistics 18
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CITY OF SEASIDE
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 1
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Government Activities
Net Investment in Capital Assets 51,872,826 $ 50,954,744 $ 50,040,441 $ 49,022,604 $ 54,350,475 $ 56,622,001 $ 54,433,656 $ 168,453,241 $ 159,995,200 $ 166,930,564 $ Restricted 9,550,630 9,710,239 9,660,491 9,987,477 11,041,019 13,070,718 22,025,754 16,529,392 20,625,424 19,285,040 Total Unrestricted - Government Activities 4,838,270 (30,609,347) (27,683,363) (26,815,983) (32,746,156) (34,262,721) (32,454,795) (23,913,563) (9,897,255) (4,347,644) Total Government Activities 66,261,726 $ 30,055,636 $ 32,017,569 $ 32,194,098 $ 32,645,338 $ 35,429,998 $ 44,004,615 $ 161,069,070 $ 170,723,369 $ 181,867,960 $ Business-Type Activities
Net Investment in Capital Assets 9,327,351 $ 9,161,793 $ 9,001,236 $ 8,838,539 $ 8,759,020 $ 8,693,218 $ 8,630,526 $ 8,525,675 $ 8,537,143 $ 16,055,543 $ Restricted 543,036 545,635 545,635 550,634 550,634 550,634 550,635 550,633 568,215 573,939 Total Unrestricted - Business-Type Activities 571,472 821,517 481,764 427,342 325,542 (137,586) (80,585) (146,681) 183,750 (6,304,584) Total Business-Type Activities 10,691,904 $ 10,278,900 $ 10,028,635 $ 9,816,515 $ 9,635,196 $ 9,106,266 $ 9,100,576 $ 8,929,627 $ 9,289,108 $ 10,324,898 $ Primary Government
Net Investment in Capital Assets 61,200,177 $ 60,116,537 $ 59,041,677 $ 57,861,143 $ 63,109,495 $ 65,315,219 $ 63,064,182 $ 176,978,916 $ 168,532,343 $ 182,986,107 $ Unrestricted Net Position 5,659,787 (30,037,875) (27,201,599) (26,388,641) (32,420,614) (34,400,307) (32,535,380) (24,060,244) (9,713,505) (10,652,228) Net Investment in Capital Assets & Unrestricted Net Position 66,859,964 30,078,662 31,840,078 31,472,502 30,688,881 30,914,912 30,528,802 152,918,672 158,818,838 172,333,879 Restricted Net Position 10,093,666 10,255,874 10,206,126 10,538,111 11,591,653 13,621,352 22,576,389 17,080,025 21,193,639 19,858,979 Total Primary Government Net Position 76,953,630 $ 40,334,536 $ 42,046,204 $ 42,010,613 $ 42,280,534 $ 44,536,264 $ 53,105,191 $ 169,998,697 $ 180,012,477 $ 192,192,858 $ Source: City of Seaside
169
Packet Page 196
CITY OF SEASIDE
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 2
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Primary Government - Program Revenues
Governmental Activities
Charges for Services:
General Government 40,876 $ 106,735 $ 188,062 $ 217,374 $ 297,811 $ 252,731 $ 968,286 $ 196,437 $ 500,907 $ 1,018,195 $ Public Safety 711,176 726,544 1,390,208 702,144 899,702 704,238 613,662 306,075 360,751 294,619 Recreation 326,626 353,884 346,200 369,254 431,753 430,767 237,205 58,659 - - Public Works 1,040,278 1,373,881 801,450 953,293 854,113 689,194 1,248,540 890,107 3,363,814 2,830,239 Community Development 515,513 740,415 703,797 738,646 930,582 801,354 1,032,421 662,754 1,577,488 1,834,765 Operating Grants and Contributions 1,020,495 2,104,725 2,147,228 1,617,304 2,829,733 1,589,329 10,522,616 3,433,800 12,408,162 4,279,563 Capital Grants and Contributions 106,134 666,409 166,888 840,389 3,582,841 1,155,650 878,861 1,575,799 1,320,607 1,321,906 6,072,593 3,761,098 5,743,833 5,438,404 9,826,535 5,623,263 15,501,591 7,123,631 19,531,729 11,579,287 Business - Type Activities
Charges for Services - Water Fund 814,484 707,032 678,368 648,474 668,476 656,972 761,556 1,029,925 1,267,779 1,079,871 Charges for Services - Golf Fund 336,913 337,153 337,053 336,613 335,663 339,363 337,362 335,013 339,882 338,763 1,044,185 1,151,397 1,015,421 985,087 1,004,139 996,335 1,098,918 1,364,938 1,607,661 1,418,634 7,116,778 4,912,495 6,759,254 6,423,491 10,830,674 6,619,598 16,600,509 8,488,569 21,139,390 12,997,921 General Revenues & Other Changes in Net Position
Governmental ActivitiesTaxes
Property Taxes 4,715,562 6,008,714 6,324,164 6,785,706 7,397,804 7,118,816 8,493,622 9,407,981 19,370,575 21,778,926 Gas Tax 1,054,371 843,349 699,318 616,804 706,363 576,499 705,093 707,659 752,706 798,015 Sales and Use Taxes 9,445,102 10,000,085 11,475,160 11,657,020 14,199,670 16,118,300 14,883,836 19,498,687 10,694,493 10,807,903 Transient Occupancy Tax 2,419,935 2,665,733 2,902,459 2,701,621 2,922,110 3,424,302 3,038,525 2,661,684 4,121,252 4,129,418 Other Taxes 4,984,854 3,962,379 4,434,597 4,493,014 4,726,372 4,960,249 5,747,067 6,615,147 6,561,981 6,802,434 22,619,824 23,480,260 25,835,698 26,254,165 29,952,319 32,198,166 32,868,143 38,891,158 41,501,007 44,316,696 Investment Earnings 638,839 523,547 50,097 80,448 203,822 296,165 296,448 499,736 103,567 955,931 Miscellaneous 113,086 22,779 223,414 570,180 527,169 514,565 3,305,155 1,533,760 34,512 102,320 Transfers and Other 2,531 2,400 1,693 2,035 386 199,745 439 - - (1,500,000) 24,029,117 23,374,149 26,110,902 26,906,828 30,683,696 33,208,641 36,470,185 40,924,654 41,639,086 43,874,947 Business - type Activities
Investment Earnings 4,507 5,554 5,410 7,132 917 14,893 4,885 1,865 (221,009) (236,892) Miscellaneous 23,616 11,738 - 14,065 1,565 1,437 26,993 3,487 36,466 (231) Transfers (2,531) (2,400) (1,693) (2,035) (386) (399) (439) - - 1,500,000 14,761 25,723 3,717 19,162 2,096 15,931 31,439 5,352 (184,543) 1,262,877 31,160,656 28,312,367 32,873,873 33,349,481 41,516,466 39,844,170 53,102,133 49,418,575 62,593,933 58,135,745 (continued)
Total Governmental Activities - Program Revenues
Total Business - Type Activities Program Revenues
Total Governmental Activities - General Revenues
Total Primary Government - Program Revenues
Total Taxes
Total Business - Type Activities - General Revenues
General Revenues & Other Changes in Net Position
170
Packet Page 197
CITY OF SEASIDE
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 2
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses
Governmental Activities
General Government 1,377,226 1,129,508 821,822 1,367,688 1,459,672 1,336,795 1,011,992 837,279 2,275,569 4,072,018 Public Safety 16,155,119 17,056,925 18,222,421 20,252,913 21,624,482 22,925,383 26,837,769 23,518,274 26,277,921 21,560,075 Recreation 1,837,260 2,171,171 2,382,676 2,119,933 2,795,333 3,045,073 2,756,528 2,619,777 6,314,258 7,030,452 Public Works 6,422,844 8,359,219 6,275,754 6,073,182 6,806,717 6,054,138 8,927,550 16,674,814 6,701,501 4,646,737 Community Development 1,767,207 1,222,876 1,868,761 2,026,315 2,427,146 3,005,889 3,500,840 3,423,683 8,738,315 6,191,622 Interest and fiscal charges 378,828 364,791 321,368 328,672 311,716 1,157,184 870,256 793,191 1,208,952 808,739 30,304,490 27,938,484 29,892,802 32,168,703 35,425,066 37,524,462 43,904,935 47,867,018 51,516,516 44,309,643 Business-Type Activities
Water Fund 765,971 732,871 839,023 803,438 842,091 1,130,030 721,190 1,154,566 889,299 1,477,751 Golf Fund 428,582 423,951 430,380 412,931 417,104 411,166 414,857 386,673 174,338 167,970 1,156,822 1,194,553 1,269,403 1,216,369 1,259,195 1,541,196 1,136,047 1,541,239 1,063,637 1,645,721 29,133,037 31,461,312 31,162,205 33,385,072 36,684,261 39,065,658 45,040,982 49,408,257 52,580,153 45,955,364 Net Revenue (Expenses)
Governmental Activities (24,177,386) (24,231,897) (24,148,969) (26,730,299) (25,598,531) (31,901,199) (28,403,344) (40,743,387) (31,984,787) (32,730,356) Business-type Activities (43,156) (112,637) (253,982) (231,282) (255,056) (544,861) (37,129) (176,301) 544,024 (227,087) (24,344,534) (24,220,542) (24,402,951) (26,961,581) (25,853,587) (32,446,060) (28,440,473) (40,919,688) (31,440,763) (32,957,443) Changes in Net Position
Governmental Activities (803,237) (202,780) 1,961,933 176,529 5,085,165 1,307,442 8,066,841 181,267 9,654,299 11,144,591 Business-type Activities (17,433) (97,876) (250,265) (212,120) (252,960) (528,930) (5,690) (170,949) 359,481 1,035,790 (820,670) $ (300,656) $ 1,711,668 $ (35,591) $ 4,832,205 $ 778,512 $ 8,061,151 $ 10,318 $ 10,013,780 $ 12,180,381 $ 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)
171
Packet Page 198
CITY OF SEASIDE
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 3
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable 3,156,728 $ 3,116,562 $ 3,089,105 $ 3,051,630 $ 3,002,927 $ 2,734,701 $ 2,425,725 $ 2,655,428 $ 2,651,869 $ 10,131,859 $ Restricted 76,316 98,286 98,286 482,428 482,428 482,428 - 482,428 - 3,172,035 Committed 5,243,069 4,827,407 4,827,407 6,120,075 6,120,075 12,340,000 9,045,764 11,459,000 11,759,718 18,860,969 Assigned 209 4,875 4,875 4,877 4,880 4,504 - 504,504 4,504 4,504 Unassigned 1,410,727 2,464,966 4,054,668 3,144,680 9,278,725 3,413,168 8,343,680 15,181,618 29,888,289 12,584,340 General Fund Balance 9,887,049 10,512,096 12,074,341 12,803,690 18,889,035 18,974,801 19,815,169 30,282,978 44,304,380 44,753,707 Other Governmental Funds
Nonspendable 49 3,867 1,980 1,980 1,980 - - - 3,398 112 Restricted 9,363,589 9,571,953 9,562,575 9,505,049 9,482,126 28,494,592 33,968,661 20,179,716 18,359,433 17,929,318 Committed 1,754,005 1,980,869 1,688,818 2,138,854 3,130,796 1,754,905 1,877,290 8,062,440 8,413,349 6,797,937 Assigned 810,726 868,616 995,008 846,784 97,300 - - - - - Unassigned (1,916,602) (2,006,146) (2,036,626) (2,049,169) (4,952,524) (5,288,174) (2,269,663) (308,738) (232,275) (1,447,062) Total Other Governmental Fund
Balance 10,011,767 10,419,159 10,211,755 10,443,498 7,759,678 24,961,323 33,576,288 27,933,418 26,543,905 23,280,305 Total Governmental Fund Balance 19,898,816 $ 20,931,255 $ 22,286,096 $ 23,247,188 $ 26,648,713 $ 43,936,124 $ 53,391,457 $ 58,216,396 $ 70,848,285 $ 68,034,012 $ $-
$80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund Balance
$0
$80,000,000$70,000,000$60,000,000$50,000,000$40,000,000$30,000,000$20,000,000$10,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General and Other Governmental Fund Balance
General Fund Balance Total Other Governmental Fund Balance 172
Packet Page 199
CITY OF SEASIDE
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 4
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Taxes 20,732,419 $ 22,531,390 $ 25,029,799 $ 25,527,624 $ 29,245,956 $ 32,136,232 $ 32,163,050 $ 38,183,499 $ 42,244,556 $ 45,054,648 $ Licenses and permits 435,167 569,497 453,758 547,258 746,988 603,923 685,435 813,155 1,585,327 1,209,979 Fines and penalties 91,877 125,689 116,750 191,194 91,341 110,728 108,119 116,266 93,901 176,582 Use of money and property 306,163 279,813 302,797 337,310 468,163 544,684 569,931 492,918 436,002 1,341,781 Intergovernmental 3,099,137 3,576,581 3,097,446 2,715,012 7,497,261 3,206,397 11,818,608 6,623,069 14,124,632 4,740,037 Charges for services 682,744 2,054,044 1,768,547 1,478,879 1,707,356 1,458,410 1,823,977 1,045,239 1,979,120 2,106,854 Other Revenues 1,780,351 808,305 767,762 1,340,461 809,075 496,874 3,847,936 1,533,760 903,762 2,304,974 Total Revenues 27,127,858 29,945,319 31,536,859 32,137,738 40,566,140 38,557,248 51,017,056 48,807,906 61,367,300 56,934,855 Expenditures
Current
General Government 1,056,694 984,027 810,614 1,031,050 1,213,228 1,167,310 730,687 241,994 1,577,358 3,598,345 Public Safety 15,804,070 17,012,057 17,612,637 19,006,092 20,498,579 20,987,803 23,067,859 21,454,742 23,539,832 25,175,872 Recreation 1,705,813 2,086,340 2,323,397 2,554,317 2,504,953 2,921,316 2,448,648 2,435,607 3,938,111 4,585,761 Public Works 4,427,655 6,489,481 4,941,280 5,097,142 5,454,110 5,035,819 6,442,551 7,563,672 7,273,470 11,322,222 Community Development 1,105,985 1,323,926 2,007,029 2,086,472 2,306,086 3,295,662 3,027,532 3,708,223 7,181,769 7,776,767 Capital Outlay 421 89,241 1,129,436 1,174,740 6,896,281 3,863,946 2,709,517 7,245,880 3,093,747 4,928,465 Debt Service
Principal 756,217 1,077,674 995,703 986,801 701,459 835,188 1,656,624 1,212,175 1,352,202 1,605,389 Interest and Fiscal Charges 380,166 364,445 323,882 326,786 306,648 1,042,479 887,916 824,461 784,422 764,439 Total Expenditures 25,237,021 29,427,191 30,143,978 32,263,400 39,881,344 39,149,523 40,971,334 44,686,754 48,740,911 59,757,260 Revenues over (under) Expenditures 1,890,837 518,128 1,392,881 (125,662) 684,796 (592,275) 10,045,722 4,121,152 12,626,389 (2,822,405) 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 218,772 567,814 28,477 1,127,047 1,610,960 - - - - 1,508,132 Transfer In 2,562,025 2,664,936 1,986,367 3,084,350 1,180,794 3,810,797 9,021,030 11,432,724 18,798,346 7,513,013 Transfer Out (2,718,439) (2,553,925) (2,052,884) (3,124,643) (1,150,105) (3,806,999) (9,016,855) (11,428,937) (18,792,846) (9,013,013) Total Other Financing Sources (Uses) 226,872 514,311 (38,040) 1,086,754 2,716,729 16,402,468 4,175 703,787 5,500 8,132 Net Change in Fund Balance 2,117,709 $ 1,032,439 $ 1,354,841 $ 961,092 $ 3,401,525 $ 15,810,193 $ 10,049,897 $ 4,824,939 $ 12,631,889 $ (2,814,273) $
4.56% 5.11% 4.61% 4.41% 3.19% 5.48% 6.72% 4.73% 4.52% 4.79% Source: City of Seaside
Debt Service as a percentage of non-capital expenditures 173
Packet Page 200
CITY OF SEASIDE
GOVERNMENTAL FUNDS - REVENUE BY SOURCE
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 5
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 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 $2022 42,244,556 1,585,327 93,901 436,002 14,124,632 1,979,120 903,762 61,367,300 $2023 45,054,648 1,209,979 176,582 1,341,781 4,740,037 2,106,854 2,304,974 56,934,855 $ Source: City of Seaside
174
Packet Page 201
CITY OF SEASIDE
GOVERNMENTAL FUNDS - TAXES BY TYPE
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 6
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 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 20,732,419 2015 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 29,245,956 2019 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 32,136,2322020 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 2022 13,707,172 6,560,976 4,121,251 1,899,159 710,672 2,754,105 5,521,566 90,277 155,462 6,723,916 5,767,305 42,244,5562023 14,269,394 6,516,871 4,129,418 1,928,742 798,448 3,091,150 7,352,838 91,729 105,982 6,770,078 7,550,549 45,054,650 Source: City of Seaside
175
Packet Page 202
CITY OF SEASIDE
ASSESSED VALUATION, TAX RATES, AND TAX LEVIES
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 7
Fiscal Year City's Taxable % of Change - Total Direct
Ending June 30 Secured Unsecured Assessed Value from Prior Year Tax Rate 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%2022 2,760,791,036 105,221,589 2,866,012,625 $ 5.31% 1.0%2023 2,931,795,048 110,153,788 3,041,948,836 $ 6.14% 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
$3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City's Taxable Assessed Valuation
Series2
176
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CITY OF SEASIDE
PRINCIPAL PROPERTY TAX PAYERS
CURRENT FISCAL YEAR AND FISCAL YEAR 2013-2014
OPERATING INFORMATION
SCHEDULE 8
FY 2022-2023
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 40,426,979 $ 1.33% Sunbay Resorts Associates LLC 1 35,990,502 $ 2.00%Seaside Laguna Limited 2 28,981,621 $ 0.95% Seaside Laguna Limited 2 28,074,824 $ 1.56%Palmer Seaside LLC & MCM Seaside LP 3 26,071,418 $ 0.86% California-American Water Co. 3 16,110,394 $ 0.90%California-American Water Co. 4 25,092,516 $ 0.82% B & B Golf Course Properties LLC 4 15,798,967 $ 0.88%Hovercraft LLC / BJC Seaside LLC 5 18,704,170 $ 0.61% Seaside Hospitality LP 5 12,000,000 $ 0.67%Seaside Hospitality LP 6 17,462,410 $ 0.57% P and S Real Estate Company 6 10,282,891 $ 0.57%B & B Golf Course Properties LLC 7 17,412,645 $ 0.57% 1050 South 12th Street LLC 7 7,695,292 $ 0.43%Verducci Enterprises LLC 8 17,396,657 $ 0.57% Bay View Community LLC 8 7,535,066 $ 0.42%Cappo Real Estate Holdings LLC 9 17,309,133 $ 0.57% Miref Seaside LLC 9 7,389,385 $ 0.41%Lithia Real Estate INC 10 16,704,410 $ 0.55% Thomas C and Joan K Maher Trust 10 7,087,098 $ 0.39% Total Top 10 Taxpayers' Totals 225,561,959 $ 7.42% Total Top 10 Taxpayers' Totals 147,964,419 $ 8.24% City's Total Assessed Valuation 3,041,948,836 $ 100% City's Total Assessed Valuation 1,796,501,318 $ 100% Source: Monterey County Tax RollHdL, Coren Cone
FY 2013-2014
1.33%
0.95%
0.86%
0.82%
0.61%
0.57%
0.57%
0.57%
0.57%
0.55%
Sunbay Resorts Associates LLC
Seaside Laguna Limited
Palmer Seaside LLC & MCM Seaside…
California-American Water Co.
Hovercraft LLC / BJC Seaside LLC
Seaside Hospitality LP
B & B Golf Course Properties LLC
Verducci Enterprises LLC
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%
0.90%
0.88%
0.67%
0.57%
0.43%
0.42%
0.41%
0.39%
Sunbay Resorts Associates LLC
Seaside Laguna Limited
California-American Water Co.
B & B Golf Course Properties LLC
Seaside Hospitality LP
P and S Real Estate Company
1050 South 12th Street LLC
Bay View Community LLC
Miref Seaside LLC
Thomas C and Joan K Maher Trust Percentage
to the City's
Total Assessed Valuation
City's Top Ten Principal Property Tax Payers - June 30, 2007
1.33%
0.95%
0.86%
0.82%
0.61%
0.57%
0.57%
0.57%
0.57%
0.55%
Sunbay Resorts Associates LLC
Seaside Laguna Limited
Palmer Seaside LLC & MCM Seaside…
California-American Water Co.
Hovercraft LLC / BJC Seaside LLC
Seaside Hospitality LP
B & B Golf Course Properties LLC
Verducci Enterprises LLC
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, 2023
2.00%
1.56%
0.90%
0.88%
0.67%
0.57%
0.43%
0.42%
0.41%
0.39%
Sunbay Resorts Associates LLC
Seaside Laguna Limited
California-American Water Co.
B & B Golf Course Properties LLC
Seaside Hospitality LP
P and S Real Estate Company
1050 South 12th Street LLC
Bay View Community LLC
Miref Seaside LLC
Thomas C and Joan K Maher Trust
Percentage
to the City's
Total Assessed Valuation
City's Top Ten Principal Property Tax Payers - June 30, 2014 177
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CITY OF SEASIDE
TOP 25 SALES TAX PRODUCERS
2013-2014 AND 2022-2023
OPERATING INFORMATION
SCHEDULE 9
(In Alphabetical Order)
Audi Monterey Peninsula Monterey Peninsula Power Sports Arco AM PM Granite Rock BMW of Monterey Pdq Food Mart Audi Monterey Peninsula Home Depot Built In Distributors Porsche Monterey BMW of Monterey Land Rover Monterey Cardinale Nissan Premier Chevrolet And Cadillac Of Seaside Built In Distributors Porsche Monterey Costco Quick Lane Butts Acura Quick Lane
Cypress Coast Subaru Reef Butts Chevrolet Cadillac Rod & Ros Gas & Food Mart Ferguson Enterprises Seaside Cadillac Cals Chrysler Dodge Jeep Ram Seaside Shell Granite Rock Seaside Chrysler Dodge Jeep Ram Fiat Cardinale Nissan Smart & Final Higher Level of Care Seaside Seaside Shell Chili's Staples Home Depot Tesla Motors Cost Plus World Market Val Strough Honda Mazda In N Out Burger Val Strough Honda Mazda Cypress Coast Subaru Victory Toyota Lexus Jaguar Monterey Land Rover
Monterey Volvo Monterey Victory Toyota Ferguson Enterprises Walgreens Lexus Monterey Peninsula Financial Services Vehicle Trust Source: HdL
Top 25 Sales Tax Producers
Calendar Year 2022 Calendar Year 2013
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CITY OF SEASIDE
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 10
(Per $100 Assessed Valuation)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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 0.01577% 0.03247% 0.02304% 0.02234% 0.02166% 0.02119% 0.02048% 0.02017% 0.03201% 0.03034% Monterey Peninsula Unified 2010 Series A 0.02131% 0.02277% 0.03000% 0.03000% 0.02890% 0.09196% 0.11707% 0.04145% 0.06042% 0.05654% Total Overlapping Rates 0.03708% 0.05524% 0.05304% 0.05234% 0.05056% 0.11315% 0.13755% 0.06162% 0.09243% 0.08688% Total Direct and Overlapping (2) Rates 1.03708% 1.05524% 1.05304% 1.05234% 1.05056% 1.11315% 1.13755% 1.06162% 1.09243% 1.08688% City's Share of 1% Levy per Proposition 13 (3) 0.178% 0.178% 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) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/aTotal Direct Rate (5) 18.098% 18.080% 18.064% 18.053% 18.038% 18.043% 18.012% 18.001% 17.991% 17.977% 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.⁴Redevelopment 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.
⁵Total 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 2013/2014 - 2022/2023 Tax Rate Table 179
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CITY OF SEASIDE
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 11
Taxable
Fiscal Year Assessed Property Property Tax Percentage
Ending June 30 Valuation Tax Levies Collections of Collections 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%
2022 2,866,012,625 6,607,306 6,604,983 99.96%
2023 3,041,948,836 7,012,909 6,966,245 99.33%
Source:City of Seaside and County of Monterey, Property Tax Revenue 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Property Tax Collections
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CITY OF SEASIDE
LEGAL DEBT MARGIN INFORMATION
JUNE 30, 2023
OPERATING INFORMATION
SCHEDULE 12
$ 3,041,948,836
15%
Total Debt Limit $ 456,292,325
-
Legal Debt Margin $ 456,292,325
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. 181
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CITY OF SEASIDE
RATIOS OF TOTAL DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(IN THOUSANDS)
JUNE 30, 2023
OPERATING INFORMATION
SCHEDULE 13
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental Activities
Lease Revenue Bonds 5,715 $ 5,420 $ 5,085 $ 4,710 $ 4,290 $ 20,194 $ 19,255 $ 18,252 $ 17,183 $ 16,034 $ Notes Payable 935 650 343 35 12 4 - - - -
HUD Obligation 409 272 136 - - - - - - -
Capital Leases 1,057 1,076 695 1,455 2,751 2,361 1,604 1,382 1,510 2,600 Total bonds and notes payable 8,116 $ 7,418 $ 6,259 $ 6,200 $ 7,053 $ 22,559 $ 20,859 $ 19,634 $ 18,693 $ 18,634 $ Business Type
Bonds Payable 3 3,667 3,600 3,567 3,490 3,407 3,320 3,233 3,120 3,013 2,895 Capital Leases - - - - 22 17 12 7 1 -
Total bonds and notes payable 3,667 $ 3,600 $ 3,567 $ 3,490 $ 3,429 $ 3,337 $ 3,245 $ 3,127 $ 3,014 $ 2,895 $ 11,783 $ 11,018 $ 9,826 $ 9,690 $ 10,482 $ 25,896 $ 24,104 $ 22,761 $ 21,707 $ 21,529 $
35.22% 32.34% 28.76% 28.28% 31.03% 77.22% N/A N/A N/A N/A
0.0140% 0.0120% 0.0102% 0.0104% 0.0107% 0.0260% 0.0242% 0.0219% 0.0008% 0.0007% $352.19 $323.38 $287.60 $282.75 $310.34 $772.16 N/A N/A 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 occur through 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 182
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2022-23 Assessed Valuation: $3,041,948,836
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable (1) Debt 6/30/23 Monterey Peninsula Community College District $118,657,396 6.599% $7,830,202 Monterey Peninsula Unified School District 216,717,679 18.200% 39,442,618 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $47,272,820
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Monterey County General Fund Obligations $119,773,645 3.655% $4,377,727 Monterey County Board of Education General Fund Obligation 4,534,000 3.655% 165,718 City of Seaside General Fund Obligations 14,375,000 100% 14,375,000 City of Seaside Unamortized Bond Premiums 234,321 100% 234,321 (2) City of Seaside Capital Leases 2,600,135 100% 2,600,135 City of Seaside Pension Obligation Bonds 1,425,000 100% 1,425,000 Monterey County Water Resources Agency General Fund Obligations 18,755,000 3.655% 685,495 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $23,863,396 Less: Monterey County supported obligations 104,263
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $23,759,133 OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
Fort Ord Reuse Authority Tax Allocation Bonds $28,030,000 30.981% $8,683,974 City of Seaside Tax Allocation Bonds $1,625,000 100% $1,625,000 TOTAL OVERLAPPING TAX INCREMENT DEBT $10,308,974
TOTAL DIRECT DEBT $18,634,456
TOTAL GROSS OVERLAPPING DEBT $62,810,734
TOTAL NET OVERLAPPING DEBT $62,706,471
GROSS COMBINED TOTAL DEBT $81,445,190 (3)
NET COMBINED TOTAL DEBT $81,340,927
(1)
(2) As of 6/30/23.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2022-23 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.55%
Total Direct Debt ($18,634,456) 0.61%
Gross Combined Total Debt 2.68%
Net Combined Total Debt 2.67%
Ratios to Redevelopment Successor Agency Incremental Valuation: $1,807,425,366 Total Overlapping Tax Increment Debt 0.57%
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.
CITY OF SEASIDE
DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023
OPERATING INFORMATION
SCHEDULE 14
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CITY OF SEASIDE
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS OPERATING INFORMATION
SCHEDULE 15
% 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 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%2021 32,068 969,527 $ 30,233 $ 5.1% 33.8 81.0% 24.1%2022 29,790 962,824 $ 32,320 $ 2.5% 33.9 80.3% 24.2% Source: HdL, Coren & Cone
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CITY OF SEASIDE
PRINCIPAL EMPLOYERS
2022-2023
OPERATING INFORMATION
SCHEDULE 16
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. 185
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CITY OF SEASIDE
FULL TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS OPERATING INFORMATION
SCHEDULE 17
FTE by Department 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Office of the City Manager 4.00 8.00 6.00 3.00 3.00 4.00 5.00 3.00 5.00 7.00 City Attorney 1.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00 2.00 2.00 Legislative Body 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Administrative Services 8.00 8.00 6.00 8.00 8.00 10.00 10.00 7.00 8.00 9.00 Human Resources* n/a n/a 2.00 2.00 3.00 3.00 3.00 3.00 4.00 4.00 Public Safety 47.00 51.00 50.00 50.00 53.00 54.00 54.00 44.00 51.00 51.00 Fire 24.00 23.00 25.00 25.00 26.00 28.00 28.00 27.00 27.00 28.00 Recreation** n/a n/a 2.00 5.00 6.00 6.00 5.00 4.00 8.00 12.00 Building Department 4.00 4.00 3.00 4.00 4.00 4.00 6.00 8.00 8.00 7.00 Engineering & Public Works n/a n/a n/a 29.00 37.00 37.00 37.00 33.00 39.00 47.00 Community Development n/a n/a n/a 8.00 10.00 10.00 10.00 11.00 15.00 10.00 Resource Management*** 37.00 36.00 36.00 n/a n/a n/a n/a n/a n/a n/a Total Full Time Equivalent Employees 129.00 137.00 136.00 140.00 156.00 163.00 164.00 146.00 172.00 182.00 * 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. 90 70 50 30 10
210 190 170 150 130 110
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Full Time Equivalent Employees
Total Full Time Equivalent Employees
186
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CITY OF SEASIDE
CAPITAL ASSETS AND OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
OPERATING INFORMATION
SCHEDULE 18
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Public Safety 2572 2852 2969 2986 3068 3288 (a) 2945 3013 3239 * 3,139 Fire Vehicles 14 14 14 12 12 12 7 11 11 12
Police calls 47024 48606 48349 35645 41580 39122 41590 29732 39710 * 34,544 Police Vehicles 46 39 37 35 36 37 36 40 40 41
Public Works Streets miles 86 92 92 92 92 92 92 92 92 152 Streetlights 652 652 652 652 652 652 652 652 652 652Traffic Signals 19 19 19 19 20 20 22 22 22 22Public Works Vehicles 25 23 24 25 29 42 44 44 44 37Dog Park 1 1 1 1 1 1 1 111 Pre school - children served 483 680 440 418 434 451 (b) 300 278 275 362 Parks 24 24 24 24 24 21 21 21 25 25Recreation programs - persons served 3547 5243 4971 3024 5466 5801 11274 10478 10172 10836Senior Center - meals served 4083 4538 3596 3381 3942 3966 2232 2453 6186 4236 2330 2542 3216 8512 8640 8589 (b) 7963 8213 9637 9345
* YTD Numbers updated as of November 28, 2023
(a) Reduction in fire calls of 9.6% March - June 2020 (COVID-19 Shelter In Place).(b) Reduction in programs due to COVID-19 restrictions.
Source: City of Seaside
Pool Attendance
Facility
Fire calls
Parks and Recreation
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CITY OF SEASIDE
MISCELLANEOUS STATISTICS
JUNE 30, 2023 OPERATING INFORMATION
SCHEDULE 19
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 32,631
Male 16,341 50.1%
Female 16,290 49.9%
Age 0 - 15 6,422 19.7%
Age 15 - 25 5,054 15.5%
Age 25 - 35 5,380 16.5%
Age 35 - 45 4,009 12.3%
Age 45 - 65 7,543 23.1%
Age over 65 4,223 12.9%
Median Age (years) 33.9
White 9,955 30.51%
Hispanic 14,920 45.72%
Black or African American 2,302 7.05%
Asian 2,949 9.04%
American Indian and Alaska Native 42 0.13%
Native Hawaiian and Other Pacific Islander 710 2.18%
Other 169 0.52%
2 or More Races 1,584 4.85%
32,631 100.0%
Housing Characteristics
Total housing units 11,096
Population
Occupied housing units 10,709 100% by housing type:
Owner-occupied 4,230 39.5% 11,243
Renter-occupied 6,479 60.5% 20,243
31,486
Source: California State Department of Finance, American Community Survey 2021; U. S. Census Bureau, 2021 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
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.C.
TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Dan Meewis, Recreation Director
DATE: January 18, 2024
SUBJECT: APPROVE MAYOR'S YOUTH FUND CONTRIBUTION REQUEST
FROM SEASIDE HIGH SCHOOL BOYS SOCCER
RECOMMENDATION
Approve a request from Seaside High School Boys Soccer Program for a donation of $3,000.00 from the Mayor's Youth Fund for the costs associated with soccer balls, cones, soccer pinnies, practice t-shirt, and reusable gator water bottles.
BACKGROUND
The Seaside High School Boys Soccer Program is requesting a donation of $3000.00 from the Mayor's Youth Fund to cover the costs associated with soccer balls, cones, soccer pinnies, practice t-shirts, and reusable gator water bottles. The Seaside High School Boys Soccer Program teaches the players the importance of character, sportsmanship, life skills and the importance of achieving excellence at school and in the community. The program teaches their young men to not only be outstanding student athletes, but also to be model citizens. They encourage all their athletes to use reusable water bottles. They have a set of reusable sports water bottles that the team uses all the time. The team picks up all the trash after their practices and games to ensure that they do their part to keep the environment clean.
Based on the information provided, staff has determined that the application meets the requirements of the Mayor's Youth Fund Policy. The Seaside High School Soccer Program received their last donation at the January 05, 2023, City Council meeting.
They submitted their 2022 Mayor's Youth Fund Closing Report within the 60-day time frame.
FISCAL IMPACT
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Item No. 8.C. Page 2 of 2
This request would be funded by a donation from the Green Waste Recovery's donation to the Mayor's Youth Fund. The current balance is the Mayor's Youth Fund account (601-2106) is $57,107.02. If the City Council approves this request, the balance will decrease to $54,107.02. This is for fiscal year 2023/24.
In the event that all of the funds in the Mayor's Youth Fund become exhausted, staff will keep a file of all applications. Once Green Waste issues the next round of funding, all applications on file will be processed at the next available City Council meeting.
ATTACHMENTS
1. MYF Seaside High School Boys Soccer 2024
2. W-9 Seaside High School Boys Soccer 2024
3. Mayors Youth Fund Closing Report - Seaside High School Boys Soccer 2023 Reviewed for Submission to the City Council by:
_________________________________________
Jaime M. Fontes, City Manager
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.D.
TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Dan Meewis, Recreation Director
DATE: January 18, 2024
SUBJECT: APPROVE A CO-SPONSORSHIP AND FEE WAIVER REQUEST FROM DELTA SIGMA THETA SORORITY, INC. FOR USE OF
OLDEMEYER CENTER FOR TWO COMMUNITY EVENTS IN 2024:
A HEALTH CONFERENCE AND THE ANNUAL JABBERWOCK
PAGEANT & YOUTH ON PARADE EVENT
RECOMMENDATION
Approve a request from the Delta Sigma Theta Sorority for co-sponsorship and a fee waiver for the costs associated with their Annual Health Conference that will be on Saturday, March 16, 2024, and the annual Jabberwock Pageant & Youth on Parade event that will be on Saturday, April 27, 2024, in the amount of $1,907.75.
BACKGROUND
The Monterey Peninsula Alumnae Chapter of Delta Sigma Theta Sorority, Inc. is requesting to hold two annual community events in 2024. The proposed events are:
The Health Conference, and the Jabberwock Pageant and Youth on Parade event, and they are requesting co-sponsorship and fee waivers for both events. The Health Conference (formerly known as the Health Empowerment Conference) will benefit men, women and children. It will also be used as a platform to honor members of the community for their contributions, impact, and longevity. The Health Conference is an informative event which will cover health issues and preventable health measures. The purpose of the Jabberwock event will showcase local youth and their various talents, and it will also be a fundraiser for youth scholarships and other various youth programs.
Both of these events have been held annually at the Oldemeyer Center and all fees were waived in the past. Staff recommends that the organization pay only the nonrefundable portion of $98.25 for each event to go towards the building maintenance fund.
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Item No. 8.D. Page 2 of 2
FISCAL IMPACT
Should the City Council approve the request for full fee waivers for both events, the approximate fiscal impact is as follows:
Health Conference on March 16, 2024:
Laguna Grande Hall Rental Fee: $56.25 per hour X 9 $ 506.25 Seaside Room Fee: $37.00 for 9 hours X 3 $ 111.00
Seashorse Room Fee: $37.00 for 9 hours X 3 $ 111.00
Non-Refundable Deposit $ 98.25
Insurance $ 122.00
TOTAL $ 948.50
Jabberwock Pageant Youth Talent on April 27, 2024:
Laguna Grande Hall Rental Fee: $56.25 per hour X 14 $ 787.50 Seaside Room Fee: $37.00 for 4 hours X 2 $ 74.00
Seashorse Room Fee: $37.00 for 4 hours X 2 $ 74.00
Non-Refundable Deposit: $ 98.25
Insurance $ 122.00
TOTAL $1,155.75
GRAND TOTAL FOR BOTH EVENTS: $2,104.25
Should the City Council approve staff recommendation to waive all rental fees but require payment for the non-refundable deposit only, the fiscal impact is $1,907.75.
ATTACHMENTS
1. Delta Sigma Theta Sorority Fee Waiver Request for Health Conference 2024
2. Delta Sigma Theta Sorority Fee Waiver Request for Jabberwock 2024
3. 501(c)(3) Information - Delta Sigma Theta Sorority
Reviewed for Submission to the City Council by:
_________________________________________
Jaime M. Fontes, City Manager
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.E.
TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Dan Meewis, Recreation Director
DATE: January 18, 2024
SUBJECT: APPROVE A FEE WAIVER REQUEST FROM MONTEREY
PENINSULA NAACP FOR COSTS ASSOCIATED WITH THEIR
COMMUNITY BUILDING EVENT WITH LOCAL POLICE CHIEFS
"BREAKFAST WITH THE BADGES"
RECOMMENDATION
Approve the fee waiver request from the Monterey Peninsula NAACP for the use of Seaside Community Center, Soper Large Room to hold their Community Building Event with local police chiefs "Breakfast with the Badges" in the amount of $856.80, the Organization to provide the City with the non-refundable portion of the deposit of $52.20.
BACKGROUND
The Monterey Peninsula NAACP Council is requesting a fee waiver to help cover the cost associated with their Community Building Event with local police chiefs, "Breakfast with Badges". This event was on January 12, 2024, from 7:00 a.m. to 1:00 p.m. at Seaside Community Center, Soper Large Room. Their purpose for this event was to collaborate with local police chiefs, and other City leaders. Their last fee waiver request was submitted for their monthly meeting at the Oldemeyer Center from January 2020 to July 2020 and approved at the February 06, 2020, City Council meeting.
Since this request came in between scheduled City Council meetings the NAACP paid for the rental, and if the Council approves the request for the Fee Waiver, they will be refunded the fees minus the non-refundable portion of the deposit.
FISCAL IMPACT
The approximate fees which are applicable to this request are:
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Item No. 8.E. Page 2 of 2
Seaside Community Center: Soper Large Room Fee 8 Hours @
59.25 per hour
$474.00
Insurance $ 87.00
Deposit $295.80
Deposit Non-Refundable Portion $ 52.20
TOTAL $909.00
Should the City Council approve the request with the staff recommendation to waive all rental fees but require payment for the non-refundable deposit only, the fiscal impact is $856.80 out of account 100.3672.
ATTACHMENTS
1. NAACP Fee Waiver Request 2024
2. W-9 - NAACP Monterey County Branch
3. NAACP 501(c)(3) lookup information
Reviewed for Submission to the City Council by:
_________________________________________
Jaime M. Fontes, City Manager
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.F.
TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Melissa Broadston, ESCA Program Manager
DATE: January 18, 2024
SUBJECT: APPROVE ENVIRONMENTAL SERVICES COOPERATIVE
AGREEMENT (ESCA) QUARTERLY REPORT
RECOMMENDATION
Approve report covering activities from September through December 2023, as presented in the agenda packet.
BACKGROUND
The Fort Ord Reuse Authority (FORA) officially closed all operations on June 30, 2020.
Prior to sunset, the City of Seaside and FORA entered into a Memorandum of Agreement nominating Seaside as FORA’s Environmental Services Cooperative Agreement (ESCA) Successor-In-Interest (Successor). Seaside is now responsible to perform the remaining Long-Term Obligations (LTO) management responsibilities related to U.S. Army (Army) Munitions and Explosives of Concern (MEC) on ESCA property until June 30, 2028. A summary of the ESCA remediation program to date is provided below. A quarterly report is required to be prepared and submitted to the Army after review and acceptance by the City Council. This report covers activities from September 1, through December 31, 2023.
FORA ESCA Remediation Program Background:
In 2007, the Army and FORA entered into an agreement for Army-funded ESCA for the removal of remnant MEC on 3,340 acres of the former Fort Ord. Under the ESCA terms, the Army awarded FORA approximately $98 million to perform Comprehensive Environmental Response Compensation and Liability Act (CERCLA) MEC cleanup on those parcels. FORA also entered into the Administrative Order on Consent (AOC) with the United States Environmental Protection Agency (EPA) and California Department of Toxic Substance Control (DTSC) (collectively referred to as regulatory agencies) defining FORA’s contractual conditions to complete the Army remediation obligations for Packet Page 262
Item No. 8.F. Page 2 of 4
the “ESCA parcels.” FORA received ESCA property ownership after EPA approval and gubernatorial concurrence under a Finding of Suitability for Early Transfer in 2009.
The ESCA properties received Records of Decision (ROD) documenting controls required to protect public health and safety and Land Use Control Implementation Plan (LUCIP) / Operation and Maintenance Plan (OMP) implementation, operation and maintenance ROD controls tailored to individual site conditions and historic MEC use. The final ESCA LUCIP/OMP documents were accepted by the Army and Regulators in February 2019.
These ESCA properties received the last EPA Remedial Action Completion letter in February 2019. The EPA issued a site-wide ESCA remedial completion certificate in April 2020.
Remedial Action Completion initiated the Army's long-term obligations on ESCA properties. To complete the ESCA and the AOC obligations, the Successor, Seaside, is required to complete a truncated series of tasks until the expiration in 2028 to include site investigation and monitoring, ensuring compliance with the land use controls for ESCA parcels by land holding jurisdictions, mitigation, monitoring, reporting for any potential or found munitions and explosives of concern, and public information and outreach regarding land use. Should any instances of MEC occur, the contractors of Arcadis, Inc., Weston Solutions, Inc. and Westcliffe Engineers, Inc. will assist with providing LTO support services.
ESCA QUARTERLY UPDATE
Jurisdiction Coordination
ESCA property could not be transferred to the jurisdictions until Army deed modifications and issuance of the Army CERCLA Warranties/Deed Amendments were completed. The ESCA property Army CERCLA Warranty and Deed modification documents were signed by FORA at Army Headquarters in Washington, D.C. and Recorded in Monterey County on June 26, 2020. The receiving jurisdictions signed and recorded these deeds and have final ownership of their ESCA properties. Seaside is working with the City of Monterey to complete the transfer of parcel E29b.3.1. Seaside is also working with the Army on the Army’s transfer of two Economic Development Conveyance parcels to Monterey-Salinas Transit (Parcels L2.3 and L2.4.1). Coordination with the Monterey County Assessor’s Office, Monterey County Health Department, and jurisdictions continues for corrections in the Geographic Information System data and land use control data. Significant progress has been made to complete the Quit Claim Deeds that will convey the Comprehensive Environmental Response, Compensation and Liability Act warranties (not related to munitions) for several parcels.
ESCA staff continues to host LTO Management, and Property, Planning, Police, and Property Manager Meetings with all land holding jurisdictions, as well as the EPA and DTSC, to discuss and review projects, or other activities as outlined by the LUCIPs that are included with their properties.
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Item No. 8.F. Page 3 of 4
ESCA continued work with Monterey County and various jurisdictions and agencies for a smooth completion of data collection and subsequent development of the 23-24 Annual Land Use Control Report. As noted above, ESCA continues to work closely with Monterey County’s Geographic Information Staff (GIS) to ensure that all remaining data corrections are made prior to the next (December 1, 2024) Land Use Control report submission. ESCA provided jurisdictions with GIS data that they can download to their phone to better assist with onsite parcel and land use control verification. This assistance continues to be offered as new staff members on-board.
ESCA coordination related to the revision of the Construction Support Plan for the Seaside storm water infiltration system installation/repair project is still in progress.
ESCA also assisted with updates to the Construction Support Plans for the Monterey One Water pipeline Phase 4 and the California Central Coast Veteran’s Cemetery appreciation wall.
Based on the history of the former Fort Ord as an Army base, munitions may be encountered during reuse of the property. ESCA outreach specific to the munitions safety awareness class at FortOrdSafety.com serves as an important resource to remind community members who might discover suspicious objects to follow the 3Rs of explosives safety – Recognize, Retreat, and Report. ESCA is responsible for the maintenance and participant tracking for the English and Spanish version of the free online training class at Fort Ord Safety.com. The training at FortOrdSafety.com supplements and compliments the Army’s on-site munitions safety training program as an important community asset for the use of the lands of the former Fort Ord.
Participation for this training remains robust. At the end of January, ESCA will send the annual reminder to take the munitions recognition safety training class to key municipalities, agencies, property owners, and contractors with possible intrusive activities on Fort Ord ESCA lands.
The ESCA team continues to conduct weekly patrols of Seaside’s ESCA properties and bi-weekly patrols of other ESCA properties. ESCA patrols also included debris and invasive weed removal.
ESCA provided program updates at the Army’s BRAC Cleanup Team meeting dedicated to munitions on October 27, 2023. ESCA also participated in the Coordinated Resource Management Team meeting on December 4, 2023, and a meeting with Department of the Army officials on December 14, 2023.
NEXT QUARTER GOALS
During the next quarter, the ESCA Program will be focusing on the following tasks. • ESCA “refresher” training will be provided to Del Rey Oaks. • ESCA will offer “refresher” training to Monterey Peninsula Parks District. • Continue coordination supporting completion of property transfers.
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• ESCA will also continue coordination with jurisdictions and extensive public outreach on the Munitions Recognition and Safety Training which is available at FortOrdSafety.com. ESCA will also send the annual reminder for this class to key municipalities, property owners, contractors, and agencies in January. • ESCA will continue coordination of tasks related to the Pollution Legal Liability insurance.
• ESCA will continue weekly inspection and monitoring of activities on ESCA lands. • ESCA will continue follow-up of incidents of concern. • ESCA will continue assistance and coordination with munitions documentation such as after action reports, Construction Support Plans, and notifications for projects located in ESCA properties with soil disturbances of less than 10 cubic yards with low probability of encountering munitions.
• ESCA will assist other jurisdictions with questions related to ESCA land use controls.
• Finally, ESCA will launch a “read your deeds” campaign with the other jurisdictions to ensure that the information and parcel boundaries are correctly reflected in the County’s GIS databases.
FISCAL IMPACT
None. The actual cost to Seaside of these Army obligations will be fully reimbursed.
ATTACHMENTS
None
Reviewed for Submission to the City Council by:
_________________________________________
Jaime M. Fontes, City Manager
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.G.
TO: City Council
FROM: Jaime M. Fontes, City Manager
BY: Nisha Patel, Public Works Director/City Engineer
Leslie Llantero, Assistant Engineer
DATE: January 18, 2024
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AMENDMENT TO THE PROFESSIONAL SERVICE
AGREEMENT WITH WALLACE GROUP FOR ADDITIONAL
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES
FOR FERNANDO PARK IMPROVEMENTS PROJECT FOR AN
AMOUNT NOT TO EXCEED $16,516.00
RECOMMENDATION
Adopt a resolution authorizing the City Manager to execute an amendment to the professional service agreement with Wallace Group for an amount not to exceed $16,516.00 to provide additional construction management and inspection services for the Fernando Park Improvements Project.
BACKGROUND
Fernando Park is located on Fernando Street between Mingo Avenue and San Pablo Avenue. Fernando Park is a small park that does not have any amenities other than a bench. The Fernando Park improvements Project (Project) involves earthwork and grading, play equipment, an accessible picnic table with bench, hand sanitation station, wood chip play surfacing, an accessible ramp, rock wall, concrete curbs, and a concrete walkway. On November 2, 2023, the City Council authorized $57,000 of additional construction contingency from the Neighborhood Improvement Commission funds to the construction agreement with Kraemer Engineering Inc. for the construction of the northern concrete pathway, and the installation of a barbecue and bench.
During the construction, the contractor encountered a waterline in conflict with the playground equipment. Due to the tight playground fall zone configuration, the playground equipment could not be moved to avoid the waterline. Upon further Packet Page 266
Item No. 8.G. Page 2 of 3
investigation of the waterline, it was determined that the waterline valve was broken and in need of repair. Public Works, with assistance from the contractor, repaired the water valve and relocated the waterline. The additional work added 6 working days to the contract.
The Wallace Group (Wallace) entered into a professional services agreement on August 17, 2023 to perform construction management and inspection services for the Project for an amount not to exceed $38,484.00, which included a 20% construction contingency. The services of the agreement include pre-construction coordination, submittal review, contractor coordination, response to contractor's request for information, processing change order requests, quantity calculations, progress estimates, daily inspections, site documentation, materials testing coordination, and project closeout. The Project was scheduled to take 65 calendar days and required daily oversight of the contractor.
Due to the additional concrete pathways and site amenities work that was added at the request of the City and the unforeseen waterline relocation, Wallace is requesting a budget amendment for completing additional construction management and inspection services for the Project. This added significant scope and time to the overall project and required design support and review, change order negotiations, additional site construction observation services, material testing, and project management that was not originally included as part of the project or included in the original service proposal.
Staff recommends adopting a resolution authorizing the City Manager to execute an amendment for an amount not to exceed $16,516.00 to the professional service agreement with Wallace Group to provide additional construction management and inspection services for the Fernando Park Improvements Project.
FISCAL IMPACT
There are sufficient funds in the Project account (342-8910-9582) to accommodate an amendment in the amount of $16,516.00 to the Wallace Group professional services agreement.
ATTACHMENTS
1. Resolution
2. Amendment #2
Reviewed for Submission to the City Council by:
_________________________________________
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Item No. 8.G. Page 3 of 3
Jaime M. Fontes, City Manager
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RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE
APPROVING AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT
WITH WALLACE GROUP TO PERFORM ADDITIONAL CONSTRUCTION
MANAGEMENT AND INSPECTION SERVICES FOR THE FERNANDO PARKS IMPROVEMENTS PROJECT FOR AN AMOUNT NOT TO EXCEED $16,516.00 WHEREAS, the Fernando Parks Improvements Project (Project) is adopted in the fiscal year 2023/2024 Capital Improvement Program (CIP) annual budget; and WHEREAS, on August 17, 2023, the City entered into a Professional Services Agreement (PSA) with Wallace Group to provide construction management and inspection services for the Fernando Park Improvements Project in the amount of $38,484.00, including 20% contingency; and
WHEREAS, on November 2, 2023, the City authorized $57,000.00 of additional construction contingency to the construction agreement with Kraemer Engineering Inc. for the construction of the northern concrete pathway and stairs, installation of a barbecue and bench; and
WHEREAS, during the course of construction, the contractor encountered a waterline in conflict with the playground equipment that needed to be relocated, which as a result added 6 working days to the Project; and
WHEREAS, due to the additional northern concrete pathway and stairways, and site amenities work which was added at the request of the City and the unforeseen waterline relocation, Wallace is requesting a budget amendment for completing additional construction management and inspection services for the Project; and WHEREAS, the added work and unforeseen work added significant scope and time to the overall Project and required design support and review, change order negotiations, additional site construction observation services, material testing, and project management that was not originally included as part of the Project or included in the original service proposal; and
WHEREAS, based upon the construction management and inspection services necessary to complete and close out the Project, an additional amount of $16,516.00 is needed.
Meeting Date: 01/18/24
Item # 8.G.
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NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Seaside does hereby authorizes the City Manager to execute an amendment to the Professional Services Agreement with Wallace Group to perform additional construction management and inspection services for the Fernando Park Improvements Project for an amount not to exceed $16,516.00.
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of Seaside duly held on the 18th day of January 2024, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
APPROVED:
______________________________
Ian N. Oglesby, Mayor
ATTEST:
______________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
______________________________
Sheri L. Damon, City Attorney
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CONTRACT AMENDMENT #2
PROFESSIONAL SERVICES
City of Seaside
Date: January 18, 2024
Contract Date
08/17/2023
ChangeRequestedby: City 2§ Consultant
Project Name
Constmction Management Services for Fernando Park Improvements To (Consultant): The Wallace Group, 612 Clarion Court, San Luis Obispo, CA 93401 You are directed to make the following changes to the Contract Documents or amend the following described work not included in the contract documents for this project.
Thepurpose ofthis addendum is to provide additional professional services relatedto the projectnamed above. The contract terms and conditions shall not be modified except for as stated herein.
MODIFY the following text in Section 2, "Services."
Consultant shall perforrn the tasks described and set forth in Exhibit A, Al, and A2 attached hereto and incorporated hereut as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A, Al, and A2.
MODIFY the following text in Section 22, "Contents of Request for Proposal and Proposal." Consultant is bound by the contents of City's Request for Proposal, Exhibit "D" hereto and incorporated herein by tbis reference, and the contents of the proposal subrrutted by the Consultant, Exbibit A, Al, and A2 attached hereto.
Original Contract
Amount
PreviousCCOTotal(Noti
including this
Amendment)
This
Amendment
Total
Revised Contract
Amount
$32,070.00 $6,414.00 $16,516.00 $55,000.00
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