Sebastopol City Council
February 1, 2022

Agenda Item Number:__8__

CITY OF SEBASTOPOL

CITY COUNCIL

AGENDA ITEM

Meeting Date: February 1, 2022
To: Honorable Mayor and City Councilmembers
From: Ana Kwong – Administrative Services Director
Subject: Receive and Accept of the City’s annual audit for the year-ended June 30, 2021 Recommendation That the City Council Accept the City’s Annual Audit for the year-ended June 30, 2021
Funding: Currently Budgeted: Yes ______ No ____X___N/A
Net General Fund Cost:

If Cost to Other Fund(s),
Account Code/Costs authorized in City Approved Budget (if applicable) AK__ (verified by Administrative Services Department)
INTRODUCTION:

The item is recommending the City Council receive the financial reports by a Certified Public Accountant for the City’s annual audit for the year ended June 30, 2021.

BACKGROUND:

The Annual Comprehensive Financial Report (ACFR) is an audited summary report of the financial transactions of the City for the Fiscal Year 2020-21 (ending June 30, 2021). The report is designed to provide summary financial information for citizens, other government agencies, municipal lenders and other interested parties. The format of this report complies with the generally accepted accounting principles (GAAP) and reporting requirements of the national Governmental Accounting Standards Board (GASB). The City’s operations show signs of stability, a result of the prudent and sound management practices of the City of Sebastopol.

Each year the City of Sebastopol has an audit conducted by an independent auditing firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Sebastopol for the fiscal year ended June 30, 2021 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. Badawi & Associates is a licensed Certified Public Accountant, who specializes in governmental audits. They had audited and verified the City of Sebastopol's financial statements and have issued the City a clean audit report, and that the accompanying financial statements have no significant or unusual transactions in the City’s statement of net position and fund statements.

Following completion of the ACFR, Management has submitted the ACFR to the Governmental Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting program. The GFOA is a nationally recognized nonprofit professional association serving more than 18,000 finance professionals in the United States and Canada, and the Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.

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Agenda Item Number:__8__
DISCUSSION:

The City’s financial statements provide information about the finances of the City in its entirety, as well as information about individual funds. The ACFR is organized into the three sections summarized below.

Introductory Section
• Letter of Transmittal - which is designed to complement Management’s Discussion and Analysis (the MD&A), is prepared by management and used to communicate information on areasthat may have an impact on the City’s finances now and in the future. This includes economic factors as well as budget and management factors. Both should be read together to understand the City’sfinancial position.

Financial Section (the main body of the ACFR for current year information) • Independent Auditors’ Report – the City’s report card on the content of the ACFR • Management’s Discussion and Analysis (MD&A) – provides an analytical overview of the City’s financial status and results for the year
• Basic Financial Statements – reports finances at a point in time (assets - liabilities) and throughout the year (revenues - expenditures), and cash flows
o City-Wide Statements – overview of financial information including all of the City’s operations by financial activity
o Fund Financial Statements – a detailed look at funds, reporting the Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance o Notes to the Financial Statements (Notes) – a narrative explanation that accompanies the Basic Financial Statements
Required Supplementary Information
• Budget to Actual Comparisons – for all governmental funds with a legally adopted budget • Pension Information – schedule of changes in the pension liability and related ratios; schedule of contributions by plan
• OPEB Information – schedule showing three years of Other Post-Employment Benefits Other Than Pensions

Statistical Section (current and historical information – up to 10 years) The last section of the ACFR, which is unaudited, contains schedules of statistical data about the City of Sebastopol in five major categories:
• Financial Trends
• Revenue Capacity
• Debt Capacity
• Demographic and Economic Information
• Operating Information
These schedules, generally covering a ten-year period, provide operating context for the financial data presented in the financial section of the ACFR.

The ACFR will be available on the City’s website after tonight’s meeting, and attached to this staff report.

Copies are also available for review in the Administrative Services Department.

Analysis
The ACFR is a complex document containing a tremendous amount of information. From the auditing standpoint, our auditor has been able to provide an independent review of the City’s financial reporting Agenda Item Number 8
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Agenda Item Number:__8__
processes and internal controls, and finds that the City of Sebastopol is in good financial health and is maintaining control over budgeted activities. The City’s General Fund ends with a $9.72 million fund balance, of which $3.03 million is unassigned and available for expenditure. The fund balance decrease was primarily caused by the theft of city funds from the County of Sonoma Treasury. The general funds portion of the loss, based on respective funds’ cash balance.

Financial Considerations
The audit report provides reasonable assurance that the financial statements are free of any material misstatements and found no material weaknesses and is therefore an indication that City funds are being spent appropriately and as intended by the City Council, grantor agencies, and Federal and State laws.

This report, with no material misstatements and weaknesses, signals the City’s quality of accounting and financial reporting and are an indication that City funds are being spent appropriately and as intended by the City Council, grantor agencies, and federal and State laws. They also help maintain the City’s favorable bond ratings.

PUBLIC COMMENT:

As of the writing of this staff report, the City has not received any public comment. However, staff anticipates receiving public comment from interested parties following the publication and distribution of this staff report. Such comments will be provided to the City Council as supplemental materials before or at the meeting. In addition, public comments may be offered during the public hearing.

PUBLIC NOTICE:

This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to schedule meeting date.

FISCAL IMPACT:

No funding impacting for accepting this report tonight.

RECOMMENDATION:

That the City Council adopt by motion and minute order to receive and accept the Fiscal Year 2020-21 audited Comprehensive Annual Financial Report (ACFR).

Attachments:

Audited Annual Comprehensive Financial Report (ACFR) as of June 30, 2021 – City of Sebastopol Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL
Annual Comprehensive Financial Report
Fiscal Year 2020-2021
Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of
Sebastopol
Sebastopol, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Prepared by:

Administrative Services Department
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City of Sebastopol
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
Page
INTRODUCTORY SECTION:

Table of Contents .......................................................................................................................................................i Letter of Transmittal..................................................................................................................................................v Directory of City Officials........................................................................................................................................ix Organization Chart....................................................................................................................................................x GFOA Certificate of Achievement for Excellence in Financial Reporting........................................................ xi

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

Government-Wide Financial Statements:

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

Governmental Funds Financial Statements:

Balance Sheet........................................................................................................................................ 32 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ............................................................... 33 Statement of Revenues, Expenditures and Changes in Fund Balances....................................... 34 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ................................................................................................................. 35 Proprietary Funds Financial Statements:

Statement of Net Position................................................................................................................... 38 Statement of Revenues, Expenses and Changes in Net Position.................................................. 39 Statement of Cash Flows .................................................................................................................... 40 Fiduciary Funds Financial Statements:

Statement of Fiduciary Net Position................................................................................................. 42 Statement of Changes in Fiduciary Net Position ............................................................................ 43 Notes to Basic Financial Statements ............................................................................................................... 45 i
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City of Sebastopol
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
Page
FINANCIAL SECTION, Continued:

Required Supplementary Information (Unaudited):

Budgets and Budgetary Accounting:

Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: General Fund .................................................................................................... 83 Defined Benefit Pension Plan:

Schedule of Proportionate Share of the Net Pension Liability .......................................................... 87 Schedule of Contributions ...................................................................................................................... 87 Other Postemployment Benefits Plan:

Schedule of Changes in the Total OPEB Liability and Related Ratios ............................................... 88 Supplementary Information:

Non-Major Governmental Funds:

Combining Balance Sheet ......................................................................................................................... 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances......................... 96 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Police Grant Special Revenue Fund................................................................................................ 100 Gas Tax Special Revenue Fund ....................................................................................................... 101 Park in Lieu Special Revenue Fund................................................................................................ 102 Traffic Impact Special Revenue Fund............................................................................................. 103 Street Lighting Assessment Special Revenue Fund...................................................................... 104 Asset Forfeiture Special Revenue Fund ......................................................................................... 105 Downtown Association Special Revenue Fund............................................................................ 106 Art in Lieu Special Revenue Fund .................................................................................................. 107 Measure M Special Revenue Fund.................................................................................................. 108 Housing General Plan Special Revenue Fund............................................................................... 109 Street Reserve Special Revenue Fund............................................................................................. 110 Vehicle Abatement Special Revenue Fund.................................................................................... 111 Inclusionary and Linkage Housing Special Revenue Fund ........................................................ 112 Building Permit Incremental Special Revenue Fund ................................................................... 113 Community Development Block Grant Special Revenue Fund ................................................. 114 BSCC 1:4:1 Youth............................................................................................................................... 115 SB1 Road and Maintenance.............................................................................................................. 116 Undergrounding Capital Project Fund .......................................................................................... 117 General Capital Project Fund........................................................................................................... 118 Woodstone Assessment District Debt Service Fund .................................................................... 119 Clean Renewable Energy Debt Service Fund................................................................................ 120 ii
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City of Sebastopol
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
Page
STATISTICAL SECTION (Unaudited):

Financial Trends:

Net Position by Component................................................................................................................................ 122 Changes in Net Position....................................................................................................................................... 124 Fund Balances of Governmental Funds............................................................................................................. 128 Changes in Fund Balances of Governmental Funds ........................................................................................ 130 Revenue Capacity Information:

Assessed Value and Estimated Actual Value of Taxable Property................................................................ 132 Direct and Overlapping Property Tax Rates..................................................................................................... 133 Principal Property Taxpayers.............................................................................................................................. 134 Property Tax Levies and Collections.................................................................................................................. 135 Taxable Sales by Category ................................................................................................................................... 136 Debt Capacity Information:

Ratios of Outstanding Debt by Type.................................................................................................................. 138 Ratios of General Bonded Debt Outstanding.................................................................................................... 140 Direct and Overlapping Governmental Activities Debt.................................................................................. 141 Legal Debt Margin Information.......................................................................................................................... 142 Pledged-Revenue Coverage ................................................................................................................................ 144 Demographic and Economic Information:

Demographic and Economic Statistics............................................................................................................... 146 Principal Employers for City of Sebastopol ...................................................................................................... 147 Operating Information:

Full-Time Equivalent City Government Employees by Function.................................................................. 148 Operating Indicators by Function....................................................................................................................... 149 Capital Asset Statistics by Function ................................................................................................................... 150 iii
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January 3, 2022
Honorable Mayor, Members of the Council and Citizens of the City of Sebastopol:

City staff is pleased to present the annual comprehensive financial report for the City of Sebastopol for the fiscal year ended June 30, 2021. This report was prepared by the Administrative Service (Finance) Department, which is responsible for both the accuracy of the data presented, and the completeness of the presentation.

The annual comprehensive financial report includes a complete set of audited financial statements and related explanatory notes to the financial statements that provide additional context for reading the statements, such as accounting policies, as well as detail about summary information presented in the statements. Also, the annual comprehensive financial report includes supplemental information and statistical information to enhance readers’ understanding of the City’s financial and economic information.

The City issues the annual comprehensive financial report within approximately six months after the close of each fiscal year with the intent to meet the goals of fiscal transparency and demonstrate compliance with various sources of external financing, such as state and federal regulations and bond covenants.

City management assumes full responsibility for the completeness and reliability of all of the information contained in this report; and has established a comprehensive framework of internal control to ensure that information is accurate and produced in accordance with generally accepted accounting principles.

Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The City’s independent auditor, Badawi & Associates, has issued an unmodified (“clean”) opinion on the City of Sebastopol financial statements for the fiscal year ended June 30, 2021. The independent auditor’s report is presented at the front of the financial section of this report.

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements and should be read in conjunction with this letter and the financial statements and notes.

Profile of the City of Sebastopol
The City of Sebastopol has a population of approximately 7,800 residents; and is located in Sonoma County, California. Sebastopol was incorporated 1902, and operates under a council-manager form of government. Policymaking and legislative authority are vested in the City Council consisting of the Mayor and four other elected Council members. The Council is elected on a non-partisan basis. Council members serve four year staggered terms, with two members elected every two years. The Mayor is selected by the five-member Council and serves in that capacity for one year.

The Council is responsible for, among other matters, approving and modifying ordinances, adopting the City budget, appointing committee and commission members, and hiring the City Manager and City Attorney. The City Manager is responsible for assuring compliance with the ordinances, implementing the policies and direction of the City Council, appointing department heads, hiring employees, and managing daily operations of the City.

Sebastopol is a full-service city that provides awide variety of municipal services to its residents and visitors, including municipal utilities (Water and Wastewater); fire and police protection; construction and v
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maintenance of City streets, storm drains, bridges, and similar infrastructure type assets; park maintenance; community recreation activities; building inspections; licenses and permits; and facilities. The city also serves as a transportation and economic hub for West Sonoma County.

Sebastopol is a City that Cares:

Sebastopol is a caring community that celebrates inclusion, diversity and sustainable environmental practices; as well as the health and success of its citizens and businesses. Many visitors, from “locals” traveling from the San Francisco Bay Area to interested visitors from around the world, come to Sebastopol to enjoy the natural environment, fine dining, welcoming lodging, and a wide array of recreational and educational activities.

The City is well-known for its leadership efforts in environmental sustainability, and strives to conserve natural resources, notably energy and water. Sebastopol hosts many local events that celebrate the arts and artists, with a robust Community Center that provides an easily accessible space for many local artisans, actors and communicators. A “makers’ space” is located within the city, and a local technology company has hosted many “makers fairs.” Sebastopol seeks an environment where its citizens and visitors can learn and grow together in a caring, supportive environment.

Budget Process:

The City’s annual budget serves as the foundation for the City of Sebastopol’s financial planning and expenditure control system. All departments of the City submit requests for appropriations to the City Budget Subcommittee each year; these requests serve as a starting point for developing a proposed budget. The City Budget Subcommittee presents a proposed operating and capital budget to the City Council each year. The Council holds public hearings, generally starting in June, to review and receive input on the proposed budget before formal adoption. The budget is adopted by fund, department and account classification. During the year, the City Manager may authorize budget transfers within departments and funds, but only the City Council can approve additional appropriations. Staff provides monthly financial reports to the Council during the year and may prepare a comprehensive budget review at mid-year. Council approves adjustments to the original budget during the year to reflect changing conditions that impact revenues or expenditures.

Budget to actual comparisons are provided in this report for each governmental fund for which an appropriated annual budget has been adopted. The general fund comparison is presented as required supplementary information in a separate section of this report immediately following the notes to the financial statements. For the City’s other governmental-type funds a budget to actual comparison schedule is presented as optional information in the section of this report containing combining financial statements and individual fund schedules.

Local Economy
The City is located in beautiful Sonoma County, approximately sixty miles north of San Francisco. The area attracts many visitors each year, and Sebastopol receives substantial funding form sales taxes and transient occupancy taxes. Attractive recreational opportunities, great food and wine, and specialty retail shops that offer locally made goods bring in many visitors. Warm welcomes and friendly service brings them back!
Local employment prospects are strong, in relation to historical trends. However, the impacts of the Covid19 pandemic that began in March 2020 are having a negative impact on local businesses. Projected sales and transient occupancy taxes have been lowered based on very recent experience with the pandemic’s impacts, and the budget has been adjusted accordingly. The FY 21-22 general fund operating budget anticipates the use of resources to exceed sources of funding by approximately $1.0 million. The adopted budget anticipated unassigned end-of-year general fund balance of $582,000; which is below the policy threshold. The FY 21-22 adopted budget anticipated assigned and unassigned balance, when combined, to be $5.6 million, which represents approximately 50% of budgeted expenditures for the general fund. As vi
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the City recovers from the impacts of the Covid-19 pandemic, policy discussions and decisions about the use or accumulation budget reserves will be a key driver of fiscal health.

Conservative projections of general revenues, primarily taxes, are necessary, given recent experiences with sharp declines in economic activity caused by the Covid-19 safety concerns as well as wildfires and floods that have occurred at a rate that is well above the historical norm.

Future Challenges:

The Fiscal Year 2021-22 budget was challenging to balance due to the pandemic; and included flat property tax projections, and lower receipts for other general taxes, especially sales taxes. Cooperation on resource use is the key to maintaining safe reserve levels, and departments began the budget process with a mandate to control expenditures with little or no growth.

Other impacts on future budgets will be pension and post-employment health care costs, as actuarial estimates impact the City’s contractual obligation to provide retirement funding to CalPERS, and health care costs continue to rise at a rate that exceeds general inflation. The City has accumulated $2.7 million in assigned fund balance to create a budgetary buffer against future spikes in pension funding requirements.

The retail hub known as “The Barlow” experienced the most severe economic impacts from prior years’ floods, and was experiencing a recovery right before the economic impacts of Covid-19 were felt. All local businesses suffered economically due to the Covid-19 virus. The City is actively working with State and County public health officials to maintain a safe environment for residents and visitors, while also planning to restore the local economic landscape to a sustainable and healthy level. Cooperation and communication will be the key to safety and success.

Long-Term Financial Planning
The City annually updates a five-year financial forecast, incorporating both projected revenues and expenditures for the general fund. The City Council balanced the FY 21-22 budget with an appropriate use of reserves that provided for the continuation of essential services during the response to the Covid-19 pandemic. The City has a practice of using moderately conservative revenue projections and adjusts projections at mid-year when necessary. The fiscal sustainability goals and priorities that had financiallysignificant impacts on budget development follow:

I. Maintain core services to the public as a top priority:
a. The budget provides “baseline” funding in core areas, including police, fire, roadways, recreation and development services; and funds administrative efforts to make public communications and decision-making transparent and responsive. b. By policy, funding requests that are above a baseline budget (prior years’ minimum operating requirements, contractual obligation plus an inflation factor), are incorporated in departmental operating budgets based on a cost-to-service benefit analysis. c. Create and charge fair prices for services that are delivered on an “as requested” basis, such as planning and development services which are regulated through a the user fee schedule.

II. Create and maintain appropriate operating budgetary surpluses:
a. Anticipated revenues plus beginning fund balances (financing sources) should be higher than appropriations for expenditures plus ending fund balances (financing uses). b. The City’s goal of creating and maintaining fund balances while providing for core services is intended to provide a cushion against uncontrollable spikes in costs or unanticipated shortterm drops in revenue. c. Planned fund balance uses, besides providing stability when expenses spike or revenues drop, should be limited to taking care of deferred City infrastructure and equipment needs, funding vii
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one-time costs to create efficiencies in City programs, and providing pre-funding of longer-term liabilities that will save money in future years.
d. The FY 21-22 adopted operating budget meets the City Council’s fund balance policy goals when assigned and unassigned fund balance are combined; and does not fund items above the baseline policy level. However, assigned fund balance is lower than the policy level due to the need to be responsive to the Covid-19 pandemic’s impact and to fund baseline service while also using conservative estimates of general tax revenues.

III. Debt financing is limited to achieving operating efficiencies:
a. Consistent with the City Council’s goal to provide stability for ongoing core service programs. b. The FY 21-22 operating budget provides for no additional debt financing. c. Core programs that require significant infrastructure, like Water and Wastewater may use debt financing for significant capital costs due to the long-term nature of the assets and financing plans.

Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Sebastopol for its annual comprehensive financial report for the fiscal year ended June 30, 2020. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local financial reports.

In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized annual comprehensive financial report, with contents that conform to program standards. The annual comprehensive financial 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. The City of Sebastopol has received the Certificate of Achievement for three consecutive years (fiscal years ended 2017 through 2020).

We believe our current report continues to meet the Certificate of Achievement Program’s requirements and we will be submitting it to GFOA to determine its eligibility for another certificate. Staff Contributions Acknowledgment
The preparation of this report would not have been possible without the teamwork and dedication within the City’s Administrative Services (Finance) Department staff, and through the cooperation of the entire City staff. City staff members have my sincere appreciation for their contributions. The Mayor and Council Members deserve recognition for their continued support and leadership in maintaining high standards of professionalism in managing the City’s finances.

Respectfully Submitted,
Ana Kwong – Administrative Services Director
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CITY OFFICIALS
(as of the date of the Financial Statements)
City Council:

Una Glass, Mayor
Sarah Glade Gurney, Vice Mayor
Neysa Hinton
Diana Gardner Rich
Patrick Slayter
City Staff:

City Manager | City Attorney……………………………………………..Lawrence McLaughlin Assistant City Manager | City Clerk ...........................................…….Mary Gourley Administrative Services Director .................……………………………Ana Kwong Building Official ...............……………………………………………….. .Vacant Engineering Manager……………………………………………………..Vacant
Fire Chief ...............................................……………………...............William Braga Planning Director ..........................…………………………………….. Kari Svanstrom Police Chief ..........................................……………………………….. Kevin Kilgore Public Works Superintendent ............................................................Dante Del Prete Advisory Commissions or Committees:

Planning Commission
Design Review Board
Public Arts Committee
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Citizens of
Sebastopol
City Organization
City Wide Organization Chart by Function
Council
Meeting
Municipal Code
Public Record
City Council
Larry McLaughlin
City Manager
Larry McLaughlin
City Attorney
Mary Gourley
Assistant City Mgr
City Clerk
Election
Information
Building Official
Vacant
Kari Svanstrom
Planning Director
Ana Kwong
Administrative
Services Director
Dante Del Prete
Public Works
Superintendent
Bill Braga
Fire Chief
Greg Devore
Acting
Police Chief
Planning
Advance
Planning
Development
Review
Building/Code
Enforcement
Contractor’s
License
Disability
Access
Information
Technology
(Consultant)
Budget
Payroll &
Accounting
Utility
Billing
Human
Resources
(Consultant)
Business
License
Parks Planning
& Development
Consultants
Programs
Consultant
Water
Treatment
Project
Inspection
Services
Wastewater
Collection &
Pumping
Stormwater
Maintenance
Street
Maintenance &
Sidewalk
Engineering
Capital Projects
(Consultants)
Facilities (Park
& Pool)
Maintenance
Fire Protection
Prevention
Investigations
Emergency
Preparedness
EOC
Fire Marshal
Volunteer FF
Recruitment
Retention
Fire Code
Enforcement/
Inspections
Public
Education
Presentations
Crime
Preventions
Investigations
Patrol
Unit
Dispatcher &
Records
Animal
Control
Permit &
Insurance
Processing
Public
Information
Officer
Henry Mikus
Engineering
Manager
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Sebastopol
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Sebastopol
Sebastopol, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund and the aggregate remaining fund information of the City of Sebastopol, California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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To the Honorable Mayor and Members of the City Council
of the City of Sebastopol
Sebastopol, California

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

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, pension and OPEB information on pages 5-20 and 83-88 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules on pages 92 to 120 and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements, and budgetary comparison schedules on pages 92 to 120 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements.

Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, and the budgetary comparison schedules on pages 92 to 120 are fairly stated in all material respects in relation to the basic financial statements as a whole.
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To the Honorable Mayor and Members of the City Council
of the City of Sebastopol
Sebastopol, California

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

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

Badawi & Associates, CPAs
Berkeley, California
January 3, 2022
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City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
As management of the City of Sebastopol, California (City) we offer readers of the City’s financial statements this overview and analysis of the City’s financial activities for the fiscal year that began on July 1, 2020 and ended June 30, 2021 (FY20-21). We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s financial statements, with related notes, which follow this section.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of the City exceeded the liabilities and deferred inflows by $16,221,000 (net position) at June 30, 2021: Governmental activities’ net position was $8,181,000; and business-type activities’ net position was $8,040,000.
 Total government-wide net position is categorized as follows:
o $14,554,000 is the net investment in capital assets;
o $ 3,067,000 is restricted for specific purposes (restricted net position); and, o ($1,400,000) is the unrestricted net position, the residual of total net position less the other categories of net position. Unrestricted net position, when positive, is used by the city to meet its ongoing obligations to citizens and creditors.  For the fiscal year, the net position of governmental and business-type activities decreased by $1,129,000 and $759,000 respectively; accounting for a government-wide decrease in net position of $1,888,000.
 At June 30, 2021, the city’s governmental funds reported a combined ending fund balance of $11,672,000. Governmental funds’ balances decreased by $(579,000) for the year reported.  The general fund reports fund balance of $9,282,000 at June 30, 2021; and it is distributed in these categories:
1) $42,000 is categorized as non-spendable, and is comprised of prepaid items. 2) $1,162,000 is reported as restricted for flood recovery. 3) $5,049,000 is reported as assigned fund balance, indicating the city’s intention to use the financial resource for a particular purpose in the future, as follows:
 Buildings, equipment and infrastructure, $1,010,000;
 Equipment, vehicle and technology replacement, $1,221,000; and,  Pension and other post-employment liabilities rate stabilization, $2,818,000. 4) $3,029,000 is unassigned fund balance, which represents the residual of total fund balance less other categories. It is available for consideration in the budget process.  Proprietary funds: Within the proprietary fund type, the city reports two enterprise funds, water and wastewater. Proprietary funds report a combined net position of $8,040,000 at June 30, 2021; with $4,234,000 reported in the water fund; and $3,806,000 reported in the wastewater fund. The city also reports an internal service fund for insurance benefits, and that fund has a balance of one thousand dollars.
5 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts – a management’s discussion and analysis (this section); the basic financial statements, with related notes to the financial statements; required supplementary information; and a supplementary information section that presents combining statements for non-major governmental funds. The basic financial statements include two kinds of statements that present different views of the City:
 The first two statements are government-wide financial statements that provide both long-term and short-term information about the City's overall financial status.  The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements.

The governmental fund’sstatements tell how general governmentservices like public safety were financed in the short term as well as what remains for future spending.

Proprietary funds’ statements offer short-term and long-term financial information about the activities the government operates like businesses, such as the water and wastewater system.

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

Figure A-1 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview explains the structure and content of each of the statements. 6 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
Government-Wide
Statements Governmental Funds Proprietary Funds
Entire City government
The activities of the City that are not
proprietary or fiduciary, such as police,
fire, and parks.

Activities the City operates similar
to private businesses: the water
and wastewater systems.

Statement of net position ·Balance sheet ·Statement of net position Statement of activities
·Statement of revenues, expenditures,
and changes in fund balances
·Statement of revenues expenses,
and changes in net position
· Statement of cash flows
Accrual accounting and
economic resources focus
Modified accrual accounting and
current financial resources focus
Accrual accounting and economic
resources focus
All assets and liabilities,
both financial and capital,
and short-term and longterm
Only assets expected to be used up
and liabilities that come due during
the year or soon thereafter; no capital
assets included
All assets and liabilities, both
financial and capital, and shortterm and long-term
All revenues and expenses
during year, regardless of
when cash is received or
paid
Revenues for which cash is received
during or soon after the end of the
year; expenditures when goods or
services have been received and
payment is due during the year or
soon thereafter
All revenues and expenses during
year, regardless of when cash is
received or paid
Required financial statements
Type of inflow/outflow information
Figure A-1
Type of asset/liability information
Accounting basis and
measurement focus
Scope
Major Features of City of Sebastopol’s Government-Wide and Fund Financial Statements Fund Statements
Government-wide Financial Statements are designed to provide readers with a broad overview of City finances, in a manner similar to a private-sector business. These financial statements provide both longterm and short-term information about the City’s overall financial status.

The statement of net position presents information on the City’s assets and deferred outflows; liabilities and deferred outflows; and the residual difference of those elements which is reported as net position.

Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
7 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation and sick leave.

The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or in part a portion of their costs through user fees and charges (business-type activities). A description of the functions follows:
 Governmental activities – Most of the City's basic services are included here, such as the police, fire, public works, parks and community development departments and general administration.

Property taxes, sales taxes, transient occupancy taxes, utility user taxes, and state and federal grants finance most of these activities.
 Business-type activities – The City charges fees to customers to help it cover the costs of certain services it provides. The City's water and wastewater system are included here.

Fund Financial Statements financial information for funds, which are groupings of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate finance-related legal compliance. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds’ financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

Such information may be useful in determining what financial resources are available in the near future to finance the City’s programs.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions.

Both the governmental funds’ balance sheet and the governmental funds’ statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
8 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
The City maintains individual governmental funds organized according to their type (the general fund and special revenue, capital projects and debt service funds). Information is presented separately in the governmental funds’ balance sheet and in the governmental funds’ statement of revenues, expenditures and changes in fund balances for the General Fund, which is considered to be a major fund. Data for the remaining governmental funds are combined into a single, aggregated presentation entitled “non-major governmental funds”. The individual and combining fund data for each of these non-major governmental funds is provided as supplementary information in this report.

Proprietary funds, like the government-wide statements, provide both long-and short-term financial information.

The City reports three funds within the proprietary funds category: Two enterprise funds account for water and wastewater business-like activities; and one internal service fund accounts for some insurance services. Both enterprise funds are considered to be major funds, and as such are reported in separate columns within the proprietary funds’ financial statements.

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 the funds are not available to support the government’s own programs. The City uses one fiduciary fund to account for activities related to its former Redevelopment Agency. 9 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position: The City's combined net position, including both governmental activities and business-type activities is reflected in Table A-1
2021 2020 2021 2020 2021 2020
Current and other assets $ 12,850,000 $ 13,673,000 $ 4,978,000 $ 5,200,000 $ 17,828,000 $ 18,873,000 Capital assets 10,594,000 10,985,000 6,847,000 7,391,000 17,441,000 18,376,000 Total assets 23,444,000 24,658,000 11,825,000 12,591,000 35,269,000 37,249,000 Deferred outflows of Resources
Deferred Outflows Pension and OPEB 2,692,000 2,603,000 534,000 559,000 3,226,000 3,162,000 Total deferred outflows of resources 2,692,000 2,603,000 534,000 559,000 3,226,000 3,162,000 Current Liabilities 1,840,000 1,679,000 249,000 303,000 2,089,000 1,982,000 Long-term Liabilities 15,482,000 15,333,000 3,987,000 3,882,000 19,469,000 19,215,000 Total liabilities 17,322,000 17,012,000 4,236,000 4,185,000 21,558,000 21,197,000 Deferred inflows of Resources
Deferred inflows - Pension and OPEB 633,000 939,000 83,000 166,000 716,000 1,105,000 Total deferred inflows of resources 633,000 939,000 83,000 166,000 716,000 1,105,000 Net Position
Invested in capital assets 9,355,000 9,495,000 5,199,000 5,595,000 14,554,000 15,090,000 Restricted 3,067,000 1,641,000 - - 3,067,000 1,641,000
Unrestricted (4,241,000) (1,826,000) 2,841,000 3,204,000 (1,400,000) 1,378,000 Total net position $ 8,181,000 $ 9,310,000 $ 8,040,000 $ 8,799,000 $16,221,000 $18,109,000 Table A-1
City of Sebastopol’s Net Position
(rounded , nearest thousand dollars)
Governmental Activities Business-Type Activities Total
Total net position, (assets and deferred outflows, less liabilities and deferred inflows), was $16,221,000 at June 30, 2021. Governmental activities net position was $8,181,000; and business-type activities’ net position was $8,040,000.

The largest component of the City’s net position is invested in capital assets; and is reported at $14,554,000. This component represents 90% of total net position as of June 30, 2021. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 10 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
An additional portion of the City’s net position represents resources that are subject to external restrictions on how they may be used, with $3,067,000 reported as restricted at June 30, 2021.

At June 30, 2021 the City reported negative unrestricted net position for its governmental activities of ($4,241,000) and a positive unrestricted net position for business-type activities of $2,841,000.

Government-wide total unrestricted net position is negative ($1,400,000). The negative unrestricted net position reported for governmental activities is due in large part to pension and post-employment medical liabilities. Also, during the year, as mentioned early in the analysis, the city recorded a theft event that had a negative impact of $1,200,000 on unrestricted net position.

Changes in Net Position: Table A-2 reflects comparative changes in net position, for both government and business-type activities for fiscal years ended June 30, 2021 and 2020. 11 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
2021 2020 2021 2020 2021 2020
Revenues
Program revenues:

Charges for services $ 936,000 $ 839,000 $ 5,638,000 $ 5,191,000 $ 6,574,000 $ 6,030,000 Grants and contributions 800,000 1,856,000 800,000 1,856,000 Capital grants and contributions 741,000 478,000 741,000 478,000 General revenues:

Property taxes 3,004,000 2,982,000 3,004,000 2,982,000
Sales Tax 4,363,000 3,698,000 4,363,000 3,698,000
Transient Occupancy Taxes 402,000 518,000 402,000 518,000 Other Taxes 1,158,000 1,100,000 1,158,000 1,100,000
Other income 309,000 947,000 25,000 92,000 334,000 1,039,000 Total revenues 11,713,000 12,418,000 5,663,000 5,283,000 17,376,000 17,701,000 Expenses
General government 2,658,000 2,610,000 2,658,000 2,610,000 Public safety 6,760,000 6,263,000 6,760,000 6,263,000
Parks and recreation 965,000 1,160,000 965,000 1,160,000 Public works 1,633,000 1,449,000 1,633,000 1,449,000
Interest 38,000 70,000 38,000 70,000
Water 2,490,000 2,394,000 2,490,000 2,394,000
Wastewater 3,520,000 3,563,000 3,520,000 3,563,000
Total expenses 12,054,000 11,552,000 6,010,000 5,957,000 18,064,000 17,509,000 Increase in net position before
transfers and special item (341,000) 866,000 (347,000) (674,000) (688,000) 192,000 Transfers 31,000 31,000 (31,000) (31,000) - -
-
Increase (decrease) in net position (310,000) 897,000 (378,000) (705,000) (688,000) 192,000 Extraordinary Item:

Theft of investment funds (819,000) - (381,000) - (1,200,000) - Change in Net Position (1,129,000) 897,000 (759,000) (705,000) (1,888,000) 192,000 Net position beginning 9,310,000 8,413,000 8,799,000 9,504,000 18,109,000 17,917,000 Net position, Ending $8,181,000 $ 9,310,000 $8,040,000 $8,799,000 $16,221,000 $18,109,000 Governmental Activities Business Type Activities Total
Table A-2
Changes in City of Sebastopol’s Net Position
(rounded to nearest thousand dollars)
Governmental Activities:

Table A-3 presents expenses for each of the City's functional areas, as well as the changes compared to the prior year:
12 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
Percentage
Change
2021 2020 2020-2021
General Government 2,658,000 2,610,000 1.84%
Public Safety 6,760,000 6,263,000 7.94%
Parks and recreation 965,000 1,160,000 -16.81%
Public Works 1,633,000 1,449,000 12.70%
Interest on Long term Debt 38,000 70,000 -45.71%
Total 12,054,000 11,552,000 4.35%
Expenses by Function
Table A-3
Cost of City Sebastopol’s Governmental Activities
(in rounded nearest one thousand dollars)
The shifts between categories reflect changes in service delivery as well as the timing of deferred maintenance performed by the parks and recreation and public works functions. General government and public safety expense increases are primarily driven by changes in actuarial estimates of future funding requirements for pensions and post-employment medical benefits. Decreases in expenses for interest reflect the amortization of long term debt.

Governmental activities’ services were financed as follows:
 Those who directly benefitted from the programs paid charges for service of $936,000;  Other governments and organizations that subsidized certain programs with operating grants of $800,000 and capital grants of $741,000; and,
 Tax revenues totaling $8,927,000 were primarily comprised of support in the form of property, sales and transient occupancy taxes.
 Interest earnings, miscellaneous revenues and transfers from other funds totaled $340,000.  Sales taxes comprise approximately 37% of total governmental activities revenue, and transient occupancy taxes make up 3%. Those sources are considered to be more sensitive to short-term economic changes than property taxes, (26% of total revenue); and franchise fees and utility taxes, (10% of total revenue).
13 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
A graphical representation of the relative weights of governmental activities revenues follow The residual amount of governmental activities’ revenues less expenses is negative ($349,000) for fiscal year 2020-21; and when combined with a transfer in from business-type activities of $31,000, the effect of a theft of County of Sonoma treasury fund reported as an extraordinary item ($819,000), net position attributed to governmental activities decreased by ($1,129,000).

Total fiscal year 20-21 governmental activities revenues were $11,713,000, and reflect a $705,000 decrease over the prior year’s amount, indicating revenue decline of 5.7%. General revenues, primarily taxes, decreased by 0.10%, with $9,236,000 collected in the current year reported, compared with $9,245,000 collected in the prior year; a decrease of ($9,000).

The net change in governmental activities’ revenue is attributed to two major factors: 1) A decrease in intergovernmental grants and contributions that funded prior years’ disaster recovery expenses; and, 2) Changes in tax revenues that are impacted by the public response to the Covid-19 global pandemic.

Governmental Activities’ expenses grew by $502,000, from $11,552,000 reported for FY 19-20 to $12,054,000 reported for FY 20-21. This 4% growth is reflective of normal inflationary pressures on salary and benefits, and services and supplies. Changes between categories of expenses include an increase in public safety expenses attributed to response to Covid-19 and disaster recovery; an increase in public works due to restoration of project after the County Health Officer lifted “shelter-in-place” orders that hampered work on prior year’s projects. A theft of investment funds from the County of Sonoma treasury is reported as an extraordinary item ($819,000) and is more fully explained in the notes to the financial statements.

Property Tax
26%
Sales Taxes
37%
Transient Occupancy
Taxes
3%
Franchise & Uitiliy
Use Tax
10%
Charges for services
8%
Grants &
Contribution
13%
Other income
3%
Governmental Activities Revenue by Source
Fiscal Year 2020-2021
14 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
As noted in our description of the differences between government-wide and fund financial statements, more detail of governmental activities is provided in the fund financial statements that focus on changes in financial resources.

Business-Type Activities:

The City’s business-type activity is comprised of transactions that occur in the water and wastewater enterprise funds.

For FY 21 the net position of business-type activities decreased by $(759,000); with a $(116,000) decrease in the water fund and a $(643,000) decrease in the wastewater fund. The change in net position represents

8.6% of the combined funds’ beginning net position.

The decrease in net position is consistent with the prior year’s results, and is due to cost increases for the operation of the sub-regional wastewater treatment plant, and increased cost of payroll related to pensions.

Also, the extraordinary item reported, theft of funds that occurred due to a fraudulent wire transfer out of the Sonoma County Treasury, contributed to the reduction in business-type activities net position.

Net position of the water enterprise fund was $4,234,000 and the net position of the wastewater fund was $3,806,000, for a combined net position of $8,840,000 for all business-type activity at June 30, 2021.

Investment in capital assets is the largest category of the business-type activities’ net position, with $5,199,000 and 64.7% of total net position. The unrestricted net position, total net position less net position invested in capital assets is $2,841,000 and 35.3% of the total.

FINANCIAL ANALYSIS OF THE CITY'S FUNDS
Governmental Funds: The focus of the City’s governmental funds is to provide information on nearterm inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s short-term financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party or the City itself.

The City’s governmental funds include the general fund and all non-major funds which are reported in the aggregate in the financial statements. Detail for the individual non-major funds’ information is provided in the supplementary information section of this report.

At June 30, 2021, the City’s governmental funds reported total fund balances of $11,672,000, a decrease of $579,000 in comparison with the prior year. The total fund balance is reported within these categories:
 $42,000 is “non-spendable” because the financial resources have been used to prepay expenditures.
 $3,067,000 is “restricted,” and is only available to spend in accordance with the external restrictions imposed by the funding sources themselves. 15 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
 $491,000 is “committed,” and is considered available only for particular purposes already approved by the City Council. Only the City Council can change the purposes for which fund balance was committed, by taking action similar to what is needed to approve budgets.  $5,050,000 is “assigned” for a particular future use.  $3,022,000 is “unassigned,” and as such is considered available to finance future years’ budgetary needs at the discretion of the City Council.

The aggregated non-major funds report a negative un-assigned fund balance of $7,000. This is caused by expenditures that occur in advance of reimbursement revenues and transfers in from other funds.

General Fund:

The general fund is the chief operating fund of the City. During FY 20-21, the general fund balance decreased by ($861,000); and is $9,282,000 as of June 30, 2021. Fund balance is distributed in the following categories:
 $42,000 is “non-spendable” because the financial resources were used for prepaid items.  $1,162,000 is restricted for particular uses from outside funding sources or law.  $5,050,000 is “assigned” for these stated uses:
o $1,010,000 for buildings and infrastructure;
o $1,221,000 for equipment, technology and vehicle replacement; and, o $2,819,000 for pension and post-employment medical benefits.  $3,028,000 is “unassigned,” and as such is considered available to finance future years’ budgetary needs at the discretion of the City Council.

As a measure of the City Council’s general fund budgetary discretion, it may be useful to calculate fund balance as a percentage of annual expenditures: Unassigned general fund balance at June 30, 2021 represents approximately 28.6% of FY 20-21 general fund expenditures of $10,579,000.

The general fund balance decrease of ($861,000) was primarily caused by the theft of city funds from the County of Sonoma Treasury. The general funds portion of the loss, based on respective funds’ cash balances, was $819,000.

General fund expenditures increased by $980,000 or 10.2%; from $9,599,000 reported for FY 19-20 to $10,579,000 for FY 20-21. Public Safety expenditures increased by $990,000 or 18%; from $5,303,000 reported for FY 19-20 and $6,293,000 reported for FY 20-21, primarily driven by rising pension funding requirements. Details of public pension liabilities and related funding are provided in the notes to the financial statements.

General Fund Budgetary Highlights
The general fund’s original budget anticipated a decrease in fund balance of ($2,198,000) and that budget was amended during the year to anticipate a decrease in fund balance of ($3,014,000). The City Council reduced the budgetary result by $1,200,000 to reflect the theft of City of Sebastopol from the County of Sonoma cash pool mention early in this analysis. Other significant budget amendments include an increase in budgeted revenues of $596,000 during the year for sales taxes, based on favorable mid-year budget reports presented to the City Council.
16 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
The actual budgetary result, a ($861,000) decrease, was better than the final budget’s anticipated decrease of ($3,014,000). Accordingly, the City reports a positive final budget to actual results variance of $2,153,000.

Actual revenue for the year exceeded final budget amounts by $1,414,000. Tax revenues exceeded budget estimates by $755,000 due to original estimates being conservative. Sales tax was the main component of the positive tax revenue variance, and exceeded final budget estimates by $646,000. Revenue estimates were conservative in recognition of the uncertainty of the timing and extent of the economic rebound from the lifting of Covid-19 shelter in place orders.

Intergovernmental revenues exceeded final budget estimates by $545,000, with the positive variance attributed revenues received from other governments to support the City’s efforts in responding to the Covid-19 pandemic.

Actual expenditures were favorable in comparison to final budget amounts by $274,000. Public works programs and parks and recreation expenditures were lower than anticipated due to delayed improvement expenditures.

A budgetary comparison schedule within the required supplementary information section of this report provides more detail on the original budget, final budget and actual results. The information includes a comparison between the final budget and actual results for each significant general fund revenue account and for each general fund functional area and operating department.

Non-major Governmental Funds:

Non-major governmental funds, in the aggregate reported June 30, 2021 fund balances of $2,390,000.

Aggregated information of the non-major funds is displayed in the financial statements that also include the major governmental funds. The individual fund information for non-major governmental funds is reported in the combining statements that are found in the supplemental information section of this report.

Overall, non-major funds’ fund balance increased by $282,000; and the increase is indicative of the timing differences between receipt of revenue and transfers in from the various funding sources and the city’s budget and expenditure process. The supplementary information includes a description of each fund, and its financial information.

In the aggregate, non-major funds reported a negative un-assigned fund balance of $7,000 at June 30, 2021. The deficit was caused by expenditures that occur in advance of the reimbursement revenues received from other parties.

Please see note 8 - A, “deficit balances,” for more information about individual fund deficits.

Proprietary Funds – Water and Sewer Enterprise Funds:

Proprietary fund-type activity is comprised of the water and wastewater enterprise funds, and one internal service fund used to allocate insurance costs. The combined net position at of enterprise funds at June 30, 2021 is $8,040,000; with $5,199,000 representing investment in capital assets net of related debt and $2,841,000 reported as unrestricted net position.
17 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
The changes in these enterprise funds’ activities are described in the business-type activities’ section of this management discussion and analysis.

Internal Service Fund:

The city also reports the insurance and benefits internal service fund within the proprietary category. The fund takes in revenues in the form of charges paid to other funds of the city, and spends those revenues to deliver insurance and other benefits. Ending fund balance of $1,000 at June 30, 2021 is unchanged for the year.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2021 the City had invested $17,446,000, (net of accumulated depreciation), in a broad range of capital assets, including equipment, vehicles, streets, buildings, park facilities, and water and wastewater systems. This amount represents a net decrease of $920,000 for FY 21, which is caused primarily by depreciation in excess of new additions.

Governmental activities’ capital asset additions included $510,000 of construction in progress, $119,000 of equipment; and $25,000 in structures improvement. Depreciation on governmental activities’ assets was $933,000. Governmental activities capital assets, net of depreciation, decreased by $391,000 for the year reported. Business-type activities’ capital asset, net of depreciation of reported at $6,846,000 at June 30, 2021, a decrease of $544,000 from the prior year. Table A-4 provides a recap of capital asset activity.

Please see the notes to the financial statements for detail on the changes of capital assets, (Note 5 – A). 2021 2020 2021 2020 2021 2020
Land and CIP 2.95 2.55 0.18 0.14 3.13 2.69
Buildings & structures 7.50 7.40 7.50 7.40
Machinery and equipment

2.70 2.58 0.22 0.17 2.92 2.75
Reservoirs 3.92 3.92 3.92 3.92
Pipelines & water system 4.22 4.22 4.22 4.22
Pipelines & wastewater system 8.34 8.26 8.34 8.26
Vehicles 2.30 2.43 0.93 0.93 3.23 3.36
Infrastructure 8.70 8.71 8.70 8.71
Accumulated depreciation (13.60) (12.68) (10.90) (10.25) (24.50) (22.93) Total 10.55 10.99 6.91 7.39 17.46 18.38
Governmental Activities Business-type Activities Total
Table A-4
City of Sebastopol’s Capital Assets
(in millions of dollars)
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
Changes in Long-term Liabilities – Debt:

For the year reported, general activities’ long-term liability transactions include a lease refunding that added a capital lease obligation of $421,000 and the deletion of $487,000 in lease obligations. Other long term debt transactions involve the normal reduction in the obligations from annual payments of $185,000.

Business type long term debt transactions consist of a new capital lease obligation of $606,000 that was used to retire $673,000 in lease obligations; and the addition of a loan for $1,019,000 and was used to retire a loan an installment sales agreement of $984,000. Detailed information about the City's long-term obligations can be found in the “Notes to the Basic Financial Statements” under section 6 – A.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES:

The City is continuing to experience the impacts of the Covid-19 pandemic that began at the end of March 2020 when sheltering in place orders went into effect. The City continues to prepare conservative budgets in order to protect the resources needed for financial stability and remain responsive to changing needs as revenues fluctuate. The City regularly reviews its revenues and expenditures to keep a pulse on its current fiscal health and ensure the adequate protection of the City’s financial resources.

The FY 21-22 budget was conservative in response to the unknown impact of Covid-19. Capital and other operational expenditures that could be delayed were not approved in the budget, and will be reconsidered when more is known about the magnitude and length to the pandemic’s impact on City revenues. If the regional economic recovery from the pandemic is delayed, or not robust, the City may be forced to make baseline service reductions.

For the 2022 fiscal year, (starts July 1, 2021 and ends June 30, 2022) the following budgetary highlights are noted:
 Projected general fund revenue and transfers in of $10,114,000 less appropriations for expenditures and transfers out of $11,167,000 create a general fund use of fund balance of $1,053,000 for FY 21-22. The baseline operating budget uses conservative estimates of revenue.

The adopted budget’s general fund unassigned balance is estimated to be $582,000 at June 30, 2022. The unassigned fund balance covers 5.2% of budget expenditures, which is below the policy benchmark of 15%.
 Water Fund: The unrestricted net position in the water fund is expected to decrease by $450,000 during the FY 21-22 budget year; and is estimated to be $1,402,000 at June 30, 2022. This unrestricted net position represents 49% of annual budget expenditures, and exceeds the policy benchmark of 25%.
 Wastewater Fund: The unrestricted net position in the wastewater fund is expected to decrease by $672,000 during the FY 21-22 budget year; and is estimated to be $649,000 at June 30, 2022. This unrestricted net position represents 16% of annual budget expenditures, and exceeds the policy benchmark of 25%.
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City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(Rounded to the nearest $1,000)
 Special revenue funds are expected to use fund balances for their various purposes as anticipated by their respective funding sources.
 The City of Sebastopol invites interested readers to review the detailed operating budget by visiting the website:
https://www.ci.sebastopol.ca.us/City-Government/Departments-Services/Finance/City-Audits CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City Treasurer/Administrative Services Director at the City of Sebastopol, 7120 Bodega Avenue, Sebastopol, CA 95472, (707) 823-7863.
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BASIC

FINANCIAL STATEMENTS
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GOVERNMENT-WIDE

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

Cash and investments $ 3,850,326 11,031,658 $ 14,881,984 $ Receivables:

Accounts receivable 210,843 1,122,674 1,333,517
Taxes receivable 1,240,638 - 1,240,638
Interest receivable 14,744 5,121 19,865
Assessment receivable 65,000 - 65,000
Prepaid items 44,563 - 44,563
Total current assets 4,978,121 12,607,446 17,585,567
Noncurrent assets:

Restricted cash and investments with fiscal agents 37,347 830 38,177 Notes receivable 204,989 - 204,989
Capital assets:

Non-depreciable 2,953,924 178,579 3,132,503
Depreciable, net 7,640,190 6,667,666 14,307,856
Total capital assets 6,846,245 10,594,114 17,440,359
Total noncurrent assets 6,847,075 10,836,450 17,683,525 Total assets 23,443,896 11,825,196 35,269,092

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 2,456,573 534,089 2,990,662 Deferred outflows of resources - OPEB 235,175 - 235,175 Total deferred outflows of resources 2,691,748 534,089 3,225,837

LIABILITIES
Current liabilities:

Accounts payable 473,814 40,278 514,092
Accrued interest payable 9,145 5,444 14,589
Accrued liabilities 300,513 - 300,513
Deposits payable 124,023 54,485 178,508
Unearned revenues 8,100 - 8,100
Compensated absences - due within one year 700,000 4,000 704,000 Long term debt - due within one year 224,362 144,400 368,762 Total current liabilities 1,839,957 248,607 2,088,564
Noncurrent liabilities:

Compensated absences - due in more than one year 308,001 49,053 357,054 Long term debt - due in more than one year 1,014,277 1,502,442 2,516,719 Total OPEB liability 2,730,476 - 2,730,476
Net pension liability 11,429,146 2,435,731 13,864,877
Total noncurrent liabilities 15,481,900 3,987,226 19,469,126 Total liabilities 17,321,857 4,235,833 21,557,690

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 142,840 83,070 225,910 Deferred inflows of resources - OPEB 489,728 - 489,728
Total deferred inflows of resources 632,568 83,070 715,638

NET POSITION
Net investment in capital assets 9,355,475 5,199,403 14,554,878 Restricted for:

Flood recovery - 1,161,558 1,161,558
Housing - 240,442 240,442
Debt service - 40,671 40,671
Streets - 1,434,516 1,434,516
Other purposes - 190,155 190,155
Total restricted - 3,067,342 3,067,342
Unrestricted (4,241,598) 2,840,979 (1,400,619)
$ 8,040,382 8,181,219 $ 16,221,601 $
Primary Government
Total net position
See accompanying Notes to Basic Financial Statements.
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City of Sebastopol
Statement of Activities
For the year ended June 30, 2021
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary Government:

Governmental activities:

General government 2,657,999 $ 205,711 $ 478,425 $ - $ 684,136 $ Public safety 6,760,025 134,888 321,471 - 456,359
Public works 1,633,132 520,283 - 741,050 1,261,333
Parks and recreation 965,252 75,314 - - 75,314
Interest on long-term debt 37,858 - - - -
Total governmental activities 12,054,266 936,196 799,896 741,050 2,477,142 Business-type activities:

Water Services 2,490,214 2,613,289 - - 2,613,289
Wastewater Services 3,519,884 3,024,497 - - 3,024,497
Total business-type activities 6,010,098 5,637,786 - - 5,637,786 Total primary government $ 6,573,982 18,064,364 $ 799,896 $ 741,050 $ 8,114,928 $ General Revenues and Transfers:

Taxes:

Property taxes
Sales taxes
Transient occupancy taxes
Other taxes
Total taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position before extraordinary item
Extraordinary Item:

Theft of investment funds
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
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Governmental Business-Type
Activities Activities Total
$ (1,973,863) $ (1,973,863) - $
(6,303,666) (6,303,666) -
(371,799) (371,799) -
(889,938) (889,938) -
(37,858) (37,858) -
(9,577,124) (9,577,124) -
123,075 - 123,075
(495,387) - (495,387)
(372,312) - (372,312)
(9,577,124) (372,312) (9,949,436)
3,004,264 3,004,264 -
4,362,811 4,362,811 -
402,255 402,255 -
1,158,279 1,158,279 -
8,927,609 8,927,609 -
(7,279) 25,951 18,672
315,678 315,678 -
31,024 (31,024) -
9,267,032 (5,073) 9,261,959
(310,092) (377,385) (687,477)
(819,039) (380,961) (1,200,000)
(1,129,131) (758,346) (1,887,477)
9,310,350 8,798,728 18,109,078
$ 8,181,219 $ 8,040,382 $ 16,221,601
and Changes in Net Position
Net (Expense) Revenue
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FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. 31 Agenda Item Number 8
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City of Sebastopol
Balance Sheet
Governmental Funds
June 30, 2021
Non-Major Total
Governmental Governmental
General Fund Funds Funds
ASSETS
Cash and investments 8,277,901 $ 2,379,959 $ 10,657,860 $ Restricted cash and investments - 37,347 37,347
Accounts receivable 56,642 154,203 210,845
Taxes receivable 1,195,753 44,886 1,240,639
Accrued interest receivable 11,895 2,849 14,744
Assessment receivable - 65,000 65,000
Notes receivable - 204,989 204,989
Due from other funds 135,487 - 135,487
Prepaid items 42,386 - 42,386
Total assets $ 9,720,064 $ 2,889,233 $ 12,609,297

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 85,689 285,200 $ 370,889 $
Accrued liabilities 28,517 - 28,517
Due to other funds - 135,487 135,487
Unearned revenues 207 7,893 8,100
Deposits 124,023 - 124,023
Total liabilities 229,069 437,947 667,016
Deferred inflows of resources:

Unavailable revenues - 269,989 269,989
Fund Balances:

Nonspendable 42,386 - 42,386
Restricted:

Flood recovery - 1,161,558 1,161,558
Highways and streets 1,434,516 - 1,434,516
Public safety - 34,529 34,529
Community promotion - 344 344
Debt service - 40,671 40,671
Affordable housing 240,442 - 240,442
Parks and recreation 155,282 - 155,282
Total restricted 1,161,558 1,905,784 3,067,342
Committed:

Street projects 491,317 - 491,317
Total committed 491,317 - 491,317
Assigned:

Buildings, facilities, and infrastructure 1,009,788 1,009,788 - Equipment, technology, and vehicle replacement 1,221,288 1,221,288 - Pension and OPEB 2,818,458 2,818,458 -
Total assigned 5,049,534 5,049,534 -
Unassigned 3,028,639 (6,926) 3,021,713
Total fund balances 9,282,117 2,390,175 11,672,292
Total liabilities, deferred inflows of
resources, and fund balances $ 9,720,064 $ 2,889,233 $ 12,609,297 Major Funds
See accompanying Notes to Basic Financial Statements.
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Total Fund Balances - Total Governmental Funds $ 11,672,292

Non-depreciable $ 2,953,924
Depreciable, net 7,640,190
Total capital assets 10,594,114

Unavailable revenue recorded in the fund financial statements resulting from activities in which revenues were earned but funds were not available are reclassified as revenues in the GovernmentWide Financial Statements. 269,989

Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the Governmental Funds Balance Sheet. (9,145)

Internal service funds were used by management to charge the costs of certain activities, such as employee benefits, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government-Wide Statement of Net Position. 1,051

In the Government-Wide Financial Statements, employer contributions made for pension and OPEB subsequent to the measurement date, certain differences between actuarial amounts and actual results for pension are deferred and are applied to the net pension and OPEB liabilities or amortized in future periods, however these items do not impact the Governmental Funds Balance Sheet:

Deferred outflows of resources - pension 2,456,573
Deferred outflows of resources - OPEB 235,175
Deferred inflows of resources - pension (142,840)
Deferred inflows of resources - OPEB (489,728)
Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Compensated absences - due within one year (700,000)
Long term debt - due within one year (224,362)
Compensated absences - due in more than one year (308,001) Long term debt - due in more than one year (1,014,277)
Net OPEB liability (2,730,476)
Net pension liability (11,429,146)
Total long-term liabilities (16,406,262)
Net Position of Governmental Activities $ 8,181,219
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

Amounts reported for governmental activities in the Statement of Net Position are different because:

City of Sebastopol
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
See accompanying Notes to Basic Financial Statements.
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Statement of Revenues, Expenditures and Changes in Fund Balances Major Funds Non-Major Total
Governmental Governmental
General Fund Funds Funds
REVENUES:

Property taxes 2,850,529 $ 153,735 $ 3,004,264 $
Sales and use taxes 5,152,242 169,689 5,321,931
Transient occupancy tax 402,255 - 402,255
Franchise fees 363,167 - 363,167
Licenses and permits 498,475 8,959 507,434
Fines and forfeitures 30,439 - 30,439
Intergovernmental 715,157 686,696 1,401,853
Interest and rents 22,855 15,274 38,129
Charges for services 191,423 170,481 361,904
Miscellaneous 314,129 1,048 315,177
Total revenues 1,205,882 10,540,671 11,746,553
EXPENDITURES:

Current:

General government 2,270,754 37,533 2,308,287
Public safety 6,292,688 - 6,292,688
Parks and recreation 792,038 - 792,038
Public works 877,882 283,959 1,161,841
Capital outlay 143,789 536,283 680,072
Debt service:

Principal 178,335 97,016 275,351
Interest 15,064 22,794 37,858
Cost of issuance 8,488 4,354 12,842
Total expenditures 981,939 10,579,038 11,560,977
REVENUES OVER (UNDER) EXPENDITURES (38,367) 223,943 185,576 OTHER FINANCING SOURCES (USES):

Proceeds from debt 278,022 142,604 420,626
Payment to escrow (262,426) (134,604) (397,030)
Transfers in 79,367 569,181 648,548
Transfers out (98,247) (519,277) (617,524)
Total other financing sources (uses) (3,284) 57,904 54,620 EXTRAORDINARY ITEM:

Extraordinary item - Theft of investment funds (819,039) (819,039) - Net change in fund balances (860,690) 281,847 (578,843) FUND BALANCES:

Beginning of year 10,142,807 2,108,328 12,251,135
End of year $ 9,282,117 $ 2,390,175 $ 11,672,292
City of Sebastopol
Governmental Funds
For the year ended June 30, 2021
See accompanying Notes to Basic Financial Statements.
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Net Change in Fund Balances - Total Governmental Funds $ (578,843) Governmental funds reported capital outlay as expenditures. However, in the GovernmentWide Statement of Activities, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period. 673,464
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds. (933,702) In the Government-Wide Statement of Activities, only the gain or (loss) on the sale of capital assets is reported, whereas in the governmental funds, proceeds from sales increases financial resources. This amount represents the difference between proceeds and the loss on disposal of capital assets. (130,874)
Employer contributions for pension and OPEB paid after the measurement date were recorded as expenditures in the governmental funds. However, in the Government-Wide Financial Statemements these contributions are deferred. 1,483,623 OPEB expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. (50,306) Long-term debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduced long-term liabilities in the statement of net position.
- Proceeds from long-term liabilities (420,626)
- Principal repayments on long-term liabilities 275,351 - Payment to escrow agent 397,030
Accruals of compensated absences are not recognized as expenditures in the governmental funds, as they do not require the use of current financial resources. Instead, governmental funds report the usage of accumulated compensated absences as expenditures. This amount represents the change in compensated absence leave balances during the year. (42,504) Revenues that are not considered to be available are reported as unavailable revenues in the governmental funds, however, these amounts are recognized in the Government-Wide Statement of Activities. This amount represents the change in unavailable revenues. (33,404) Pension expense is recorded as incurred in the Government-Wide Statement of Activities, however pension expense does not required the use of current financial resources, and is not recognized in the governmental funds. (1,768,340)
Change in Net Position of Governmental Activities $ (1,129,131) Amounts reported for governmental activities in the Statement of Activities are different because:

City of Sebastopol
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2021
See accompanying Notes to Basic Financial Statements.
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PROPRIETARY FUND FINANCIAL STATEMENTS
Water Service Fund accounts for the activities associated with providing water services.

Wastewater Fund accounts for the wastewater treatment plant and wastewater pumping stations and collection systems.
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City of Sebastopol
Statement of Net Position
Proprietary Funds
June 30, 2021
Insurance and
Benefits Internal
Water Wastewater Total Service Fund
ASSETS
Current assets:

Cash and investments 2,251,155 $ 1,599,171 $ 3,850,326 $ 373,794 $ Accounts receivable 502,016 620,658 1,122,674 -
Prepaids - - - 2,177
Total current assets 2,756,080 2,222,041 4,978,121 375,971 Noncurrent assets:

Restricted cash and investments 830 - 830 -
Capital assets:

Non-depreciable 141,570 37,009 178,579 -
Depreciable, net 2,877,636 3,790,030 6,667,666 -
Total capital assets 3,931,600 2,914,645 6,846,245 -
Total noncurrent assets 3,932,430 2,914,645 6,847,075 - Total assets 6,688,510 5,136,686 11,825,196 375,971

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 273,892 260,197 534,089 - Total deferred outflows of resources 273,892 260,197 534,089 -

LIABILITIES
Current liabilities:

Accounts payable 10,271 30,007 40,278 374,920
Accrued interest payable 2,879 2,565 5,444 -
Deposits payable 54,485 54,485 - -
Compensated absences, due within one year 2,000 2,000 4,000 - Long term debt, due within one year 102,181 42,219 144,400 - Total current liabilities 171,816 76,791 248,607 374,920 Noncurrent liabilities:

Compensated absences, due in more than one year 19,221 29,832 49,053 - Long term debt, due in more than one year 1,245,157 257,285 1,502,442 - Net pension liability 1,186,638 1,249,093 2,435,731 -
Total noncurrent liabilities 2,513,471 1,473,755 3,987,226 - Total liabilities 1,550,546 2,685,287 4,235,833 374,920

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 42,600 40,470 83,070 - Total deferred inflows of resources 40,470 42,600 83,070 -

NET POSITION
Net investment in capital assets 2,584,262 2,615,141 5,199,403 - Unrestricted 1,650,253 1,190,726 2,840,979 1,051
Total net position $ 4,234,515 $ 3,805,867 $ 8,040,382 $ 1,051 Enterprise Funds
See accompanying Notes to Basic Financial Statements.
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City of Sebastopol
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2021
Insurance and
Benefits Internal
Water Wastewater Total Service Fund
OPERATING REVENUES:

Charges for services $ 2,608,319 $ 3,005,251 $ 5,613,570 $ 1,081,028 Other revenues 4,970 19,246 24,216 -
Total operating revenues 3,024,497 2,613,289 5,637,786 1,081,028 OPERATING EXPENSES:

Personnel services 447,255 307,020 754,275 -
Interfund charges for services 1,011,522 831,627 1,843,149 - Contractual and other services 117,003 91,991 208,994 - Intergovernmental treatment costs 1,650,401 - 1,650,401 - Utilities 222,753 45,560 268,313 -
Supplies 263,930 64,444 328,374 -
Insurance, claims, and expenses 65,145 38,263 103,408 1,081,028 Depreciation 245,066 461,733 706,799 -
Total operating expenses 3,491,039 2,372,674 5,863,713 1,081,028 OPERATING INCOME 240,615 (466,542) (225,927) -
NONOPERATING REVENUES (EXPENSES):

Interest expense (117,540) (28,845) (146,385) -
Interest and investment revenue 15,105 10,846 25,951 -
Total nonoperating revenues (expenses) (102,435) (17,999) (120,434) -

INCOME (LOSS) BEFORE TRANSFERS
AND EXTRAORDINARY ITEMS 138,180 (484,541) (346,361) -
Transfers out (31,024) - (31,024) -
Total transfers (31,024) - (31,024) -
EXTRAORDINARY ITEM:

Theft of investment funds (222,735) (158,226) (380,961) - Change in net position (115,579) (642,767) (758,346) -

NET POSITION
Beginning of year 4,350,094 4,448,634 8,798,728 1,051
End of year $ 4,234,515 $ 3,805,867 $ 8,040,382 $ 1,051 Enterprise Funds
See accompanying Notes to Basic Financial Statements.
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City of Sebastopol
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
Insurance and
Benefit Internal
Water Wastewater Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 2,563,159 $ 2,945,617 $ 5,508,776 $ - $ Cash payments from other funds - - - 1,081,028
Cash received from others 4,970 19,246 24,216 -
Cash payments to suppliers for goods and services (630,052) (1,857,691) (2,487,743) (1,185,411) Cash payments to other funds for services (1,011,522) (831,627) (1,843,149) - Cash paid to employees (396,920) (258,711) (655,631) -
Net cash provided by (used in) operating activities 16,834 529,635 546,469 (104,383) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers out - (31,024) (31,024) -
Net cash provided by noncapital financing activities - (31,024) (31,024) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (45,579) (116,880) (162,459) - Long-term debt repayment (74,943) (74,254) (149,197) -
Interest paid and fiscal charges (117,541) (28,845) (146,386) - Net cash (used in) capital and related financing activities (238,063) (219,979) (458,042) - CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received 12,196 8,634 20,830 -
Theft of investment funds (222,735) (158,226) (380,961) - Net cash (used in) investing activities (210,539) (149,592) (360,131) - NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 50,009 (352,737) (302,728) (104,383) CASH AND CASH EQUIVALENTS - Beginning of year 1,951,908 2,201,976 4,153,884 478,177 CASH AND CASH EQUIVALENTS - End of year $ 1,599,171 2,251,985 $ 3,851,156 $ 373,794 $ FINANCIAL STATEMENT PRESENTATION:

Cash and investments 2,251,155 $ 1,599,171 $ 3,850,326 373,794 $ Restricted cash and investments 830 - 830 -
Total $ 1,599,171 2,251,985 $ 3,851,156 $ 373,794 $

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

Operating income 240,615 $ (466,542) $ (225,927) $ - $
Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 461,733 245,066 706,799 -
Changes in assets and liabilities:

Accounts receivable (50,903) (59,634) (110,537) -
Prepaids 3,023 31,502 34,525 (2,177)
Deferred outflows - pension 12,887 12,242 25,129 -
Accounts payable 7,277 29,945 37,222 (102,206)
Deposits payable 5,743 - 5,743 -
Compensated absences 895 1,342 2,237 -
Net pension liability 79,117 75,161 154,278 -
Deferred inflows - pension (42,564) (40,436) (83,000) - Total adjustments 483,376 289,020 772,396 (104,383)
Net cash provided by operating activities $ 16,834 529,635 $ 546,469 $ (104,383) $

NONCASH FINANCING ACTIVITIES
Refunding debt proceeds deposited into escrow account 1,340,296 $ 285,208 $ $ 1,625,504 $ - Defeasance of debt with bond proceeds in escrow (1,340,296) (285,208) (1,625,504) - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
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City Council Meeting Packet of February 1, 2022

FIDUCIARY FUND FINANCIAL STATEMENTS
Successor Agency Trust Fund accounts for assets and liabilities transferred from the City to the Successor Agency Trust Fund.

Private Purpose Trust Fund
41 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
Successor
Agency Trust
Fund
ASSETS
Cash and investments 93,881 $
Total assets 94,123

LIABILITIES
Due to other government 93,305
Total liabilities 93,305

NET POSITION
Held in trust for successor agency 818
Total net position $ 818
See accompanying Notes to Basic Financial Statements.
42 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2021
Successor
Agency Trust
Fund
ADDITIONS:

Property tax 319,262 $
Interest 1,149
Total additions 320,411
DEDUCTIONS:

Bond interest 5,677
County housing costs 1,975
Return of excess funds 93,305
Administrative costs 210,124
Total deductions 311,081
Change in net position 9,330
NET POSITION:

Beginning of year (8,512)
End of year 818 $
See accompanying Notes to Basic Financial Statements.
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44 Agenda Item Number 8
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NOTES TO BASIC

FINANCIAL STATEMENTS
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46 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Sebastopol, California, (City) have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Sebastopol is a municipal corporation governed by an elected five member City Council.

The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. The City of Sebastopol has no component units.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with its own self-balancing set of accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Fund Financial 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 City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. 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 and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 47 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The Government-Wide Financial Statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the Proprietary Fund Financial Statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental Fund Financial Statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.

For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, sales taxes, other taxes, licenses, 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. The City reports the following major governmental funds:

The City reports the following major governmental funds:

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

The City reports the following proprietary funds as major:

The Water Fund accounts for the operations of the City’s water treatment and distribution system.

The Wastewater Fund accounts for the operations of the City’s wastewater treatment and distribution system.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City's water and wastewater function and other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include (1) charges to customers for services, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments.

Internally dedicated resources are reported as general revenues rather than as program revenues.

Likewise, general revenues include all taxes.
48 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Measurement Focus, Basis of Accounting and Financial Statement Presentation, Continued Proprietary funds distinguish operating revenues and expenses from non-operating 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 proprietary 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 non-operating revenues and expenses.

Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City reports a private-purpose trust fund. Private-purpose trust fund account for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments. Fiduciary funds are accounted for using the accrual basis of accounting. A fiduciary fund is used to account for the non-housing successor agency activities of the former redevelopment agency.

D. Cash, Cash Equivalents, and Investments
The City is authorized to invest in the State of California Local Agency Investment Fund, the Sonoma County Treasurer's Pool, U.S. Treasury bonds, bills, and notes, obligations issued by US Government agencies, bankers acceptances, repurchase agreements, certain money market and mutual funds, time deposits and savings and demand accounts. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

Fair Value Measurements - The City categorizes its fair value measurements within the hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted market prices in active markets for identical assets; Level 2 inputs are significant other observable inputs, and level 3 inputs are significant unobservable inputs. The City has no significant separately held investments and its funds are invested primarily in the Sonoma County Treasurer's Investment Pool.

For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above. 49 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Receivables and Payables
All trade and property tax receivables are not shown net of an allowance for uncollectable.

Property taxes are levied as of March 1 on property values assessed as of the same date. State statutes provide that the property tax rate be limited generally to one percent of fair value, be levied by only the County, and be shared by applicable jurisdictions. The County of Sonoma collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voter -approved debt. Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the "Teeter Plan". Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.

F. Interfund Balances/Internal Balances
Advances to and advances from other funds represent interfund loans in the fund financial statements.

Advances between funds are offset by a non-spendable fund balance classification in the applicable governmental funds to indicate that they are not available financial resources.

All other outstanding balances between funds are reported as due to and due from other funds. These are generally repaid within the following fiscal year.

Any residual balances outstanding between the governmental activities and business-type activities are reported in the Government-Wide Financial Statements as “internal balances.” G. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when used or consumed. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The City uses the consumption method of accounting for prepaid items.

H. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental-type or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $ 1,000 ($50,000 for infrastructure type assets) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.

Donated capital assets are recorded at acquisition value at the date of donation. Under the GASB 34 Implementation Rules, the City is a Phase 3 entity and was not required to record infrastructure assets existing or acquired prior to July 1, 2003 at the date these new financial reporting standards were implemented; and the City has not recorded such assets. The costs of normal maintenance and repairs that do not add to the value of asset or materially extend assets lives are not capitalized. 50 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Capital Assets, Continued
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of the business-type activities is included as part of the capitalized value of the assets constructed.

Depreciation has been provided on a straight-line basis over the following useful lives:

Years
Public domain infrastructure 50
Buildings and structures 40
System infrastructure 15-40
Vehicles and equipment 5-15
I. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position will report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources until then.

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

J. Compensated Absences
It is the government policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is a liability for a portion of unpaid accumulated sick leave since the City does have a policy to pay certain amounts when employees separate from service with the City. All vacation pay and applicable sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The General Fund has typically been used to liquidate the liability for compensated absences.

K. Unearned Revenue
In the Government-Wide Financial Statements, unearned revenue is recorded for transactions for which revenues have not been earned. In the Fund Financial Statements, unearned revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting.
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Long-Term Liabilities
In the Government-Wide Financial Statements and Proprietary Fund Financial Statements, long-term debt and other financed obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable premium or discount.

In the Fund Financial Statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs are reported as expenditures.

M. Net Position and Fund Equity
Government-Wide Financial Statements
In the Government-Wide Financial Statements, net position is classified in the following categories:

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

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

Unrestricted Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” Fund Financial Statements
In the Fund Financial Statements, the following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

Nonspendable fund balance – This includes amounts that cannot be spent because they are either not spendable in form or legally or contractually required to remain intact.

Restricted fund balance – This includes amounts with constraints placed on their use by those external to the City, including creditors, grantors, contributors or laws and regulations of other governments.

It also includes constraints imposed by law through constitutional provisions or enabling legislation.

Committed fund balance – This includes amounts that can only be used for specific purposes determined by formal action of the City Council and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.

Assigned fund balance – This includes amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established at either the highest level of decision making or by a body or an official designated for that purpose.
52 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Net Position and Fund Equity, Continued
Unassigned fund balance – This is the residual classification that includes amounts not contained in the other classifications. The General Fund is the only fund that reports a positive unassigned fund balance. In other governmental funds other than the General Fund, if expenditures are incurred for specific purposes exceed the amounts that are restricted, committed, or assigned for those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

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

N. Net Position and Fund Equity Flow Assumptions
Government-Wide Financial Statements
When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the City’s policy is to apply restricted net position first.

Fund Financial Statements
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City’s policy is to apply restricted funds first. Committed, assigned, and unassigned fund balances are considered unrestricted. When an expenditure is incurred, if committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed.

O. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates and assumptions.

P. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Q. Other Post Employment Health Care Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
53 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Other Post Employment Health Care Benefits (OPEB), Continued Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
R. New Accounting Pronouncements
In 2021, the City adopted the new accounting standards to conform to the following Governmental Accounting Standards Board Statements:
 GASB Statement No. 84, Fiduciary Activities – The objective of this statement is to improve guidance regarding the dentification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The statement establishes criteria for identifying fiduciary activities of all state and local government. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. There was no impact on net position as a result of implementation of this statement.  GASB Statement No. 90, Majority Equity Interest – The objective of this statement is to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if the government’s holding of the equity meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. There was no impact on net position as a result of implementation of this statement.
 GASB Statement No. 93, Replacement of Interbank Offered Rates – The objective of this statement is to address the accounting and financial reporting implications that result from the elimination of the London Interbank Offered Rate (LIBOR) that is notably used in most agreements in which variable payments made or received depend on an interbank offered rate (IBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate. There was no impact on net position as a result of implementation of this statement.
54 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued R. New Accounting Pronouncements, Continued
 GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 – The objectives of this statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans that meet the definition of a pension plan and for benefits provided through those plans. There was no impact on net position as a result of implementation of this statement.  GASB Statement No. 98, The Annual Comprehensive Financial Report – The objective of this statement is to address references in authoritative literature to the term comprehensive annual financial report.

There was no impact on net position as a result of implementation of this statement.

2. CASH AND INVESTMENTS
Cash and investments are reported in the accompanying financial statements as follows:

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments 11,031,658 $ 3,850,326 $ 93,881 $ 14,975,865 $ Restricted cash and investments 37,347 830 - 38,177
Total cash and investments $ 3,851,156 11,069,005 $ 93,881 $ 15,014,042 $ Government-Wide Statement of Net Position
55 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
A. Summary of Cash and Investments
Cash and investments as of June 30, 2021 consist of the following:

B. Cash Deposits
At June 30, 2021, the carrying amount of the City’s cash and cash equivalents were comprised of the general checking account, which had a book balance of $1,258,088 and petty cash of $1,075. The bank balance in the City’s general checking was $1,674,344, fully insured and collateralized with securities held by the pledging financial institutions in the City’s name as discussed below. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name. The fair value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

Deposits:

Cash on hand 1,075 $
Deposits with financial institution 1,258,088
Total cash on hand and deposits 1,259,163
Investments
County of Sonoma investment pool 9,381,964
Certificates of deposit 2,750,600
Money market 569,539
U.S. Treasury securities 515,995
U.S. government bonds 498,604
Total investments 13,716,702
Total City Treasury 14,975,865
Restricted cash and investments:

Cash with fiscal agent 38,177
Total restricted cash and investments 38,177
Total cash and investments $ 15,014,042
56 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
C. Investments
The City is authorized by State statutes to invest in the following:
* U.S. Treasury and U.S. Agency Issues
* Certificates of Deposit
* California Local Agency Investment Fund (LAIF)
* Government Bonds and Notes
* Passbook Savings
* Bankers Acceptances
* Commercial Paper (Corporations)
* Medium-Term Corporate Notes
* Repurchase Agreements
* Mutual Funds
D. Risk Disclosures
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, an investment with a longer maturity date has a greater sensitivity of its fair value to be subject to changes in market interest rates. In accordance with the City’s investment policy, exposure to interest rate risk is mitigated by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Cash and investments, including cash with fiscal agents, held in the City by maturity date at June 30, 2021 are shown below:

Credit Risk: 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.

Investment Type Fair Value
Less than 1
year
More than 1
year less than 5
years
Investments:

County of Sonoma investment pool 9,381,964 $ $ 9,381,964 $ - Certificates of deposit 2,750,600 1,003,363 1,747,237
Money market 569,539 569,539 -
U.S. Treasury securities 515,995 515,995 -
U.S. government bonds 498,604 498,604 -
Total $ 13,716,702 $ 10,954,866 $ 2,761,836
Investment Maturities (in years)
57 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
Presented below is the June 30, 2021 rating which meets the minimum rating required by (where applicable) the California Government Code, the City’s Investment Policy, or debt agreements:

Concentration of Credit Risk: The investment policy of the City of Sebastopol contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. At June 30, 2021 the City did not have investments (other than in external investment pools) that represented 5% or more of the City’s total investments.

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 failure of the counter party (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 City). The fair 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
E. Fair Value of Investments
GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, requires that the City’s investments be carried at fair value instead of cost. If material, the City adjusts the carrying value of its investments to reflect their fair value at each fiscal year-end and the effects of these adjustments are included in income for that fiscal year.

Investment Type Fair Value Aaa
Investments:

U.S. Treasury securities $ 515,995 $ 515,995
U.S. government bonds 498,604 531,527
Total Investment subject to ratings 1,014,599 $ 1,047,522 Assets not subject to credit ratings:

County of Sonoma investment pool 9,381,964
Certificates of deposit 2,750,600
Money market 569,539
Total investments $ 13,716,702
58 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
E. Fair Value of Investments, Continued
Investments (except for money market accounts, time deposits, and commercial paper) are measured at fair value on a recurring basis. Recurring fair value measurements, are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value. Inputs are assumptions that market participants use when pricing an asset or liability. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs, such as bond valued by a pricing service that uses matrix pricing, three-year option on exchange-traded shares, or valuation multiple; Level 3 inputs are significant unobservable inputs. The City’s investment in Sonoma County’s investment pool and money market were not subject to the levelling disclosure.

Investment fair value measurements at June 30, 2021 are described below:

F. Cash and Investments with Fiscal Agents
Funds deposited with fiscal agents can be held in cash or invested in various securities. The fiscal agents can invest in securities as outlined in trust agreements, provided the investments are within the limits imposed by state statutes. These investments include federal securities, investment agreements, interest-bearing demand or time deposits, commercial paper rated “AA-” or better by Moody’s, and money market mutual funds which are rated in the highest category by Moody’s. At June 30, 2021, cash and investments with fiscal agents totaled $38,177.

G. County of Sonoma Investment Pool
The City is a voluntary participant in the County of Sonoma Investment Pool (County Pool) regulated by the County’s Investment Policy under the oversight of the Treasury of the County. The County does provide the City with a fair value factor, and the City’s fair value of its position in the pool is the same as the value of the pool shares.

Investment Type Fair Value Level 1 Level 2 Level 3
Certificates of deposit $ 2,750,600 $ 2,750,600 - $ $ - U.S. Treasury securities 515,995 515,995 - -
U.S. government bonds 498,604 498,604 - -
Total investments subject to levelling 3,765,199 $ 3,765,199 - $ $ - Assets not subject to fair value levelling:

Money market 569,539
County of Sonoma investment pool 9,381,964
Total investments $ 13,716,702
Fair Value Measurement Using
59 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

3. LOANS AND NOTES RECEIVABLE
At June 30, 2021, the City had the following loans and notes receivable:

The $204,989 solar equipment installation loans are repayable in equal bi-monthly installments over a period of about 33 years by the homeowners, and repayments are made through the City's enterprise utility billing and collection system.

4. INTERFUND TRANSACTIONS
A. Fund Financial Statements
Due To and Due From
At June 30, 2021, the City had the following short-term interfund receivables and payables:

Amounts shown as due to and from other funds represent interfund balances that arise in the normal course of operation and are expected to be repaid shortly after the end of the fiscal year.

Interfund Transfers
The composition of interfund transfers for the year ended June 30, 2021 is as follows:

Transfers represent funding of various City operations, funding for capital projects, lease payments or debt service.

Party to Loan Purpose of Loan Amount
Governmental Activities:

Individual property owners Solar power equipment installation loans 204,989 $ Due From
Due to General Fund Other Funds
Non-major funds 135,487 $
General
Non-Major Govt
Funds Total
Transfer Out
General Fund $ - $ 98,247 $ 98,247
Non-major govtl Funds 79,367 439,910 519,277
Total Governmental 79,367 538,157 617,524
Water - 31,024 31,024
Total Enterprise - 31,024 31,024
Total Transfers out $ 79,367 $ 569,181 $ 648,548
Transfer In
60 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

5. CAPITAL ASSETS
A. Government-Wide Financial Statements
At June 30, 2021, the City’s capital assets consisted of the following:

Governmental Business-Type
Activities Activities Total
Non-depreciable assets:

Land and improvements 2,151,948 $ 86,440 $ 2,238,388 $
Construction in progress 801,976 92,139 894,115
Total non-depreciable assets 2,953,924 178,579 3,132,503 Depreciable assets:

Buildings and structures 7,548,378 7,548,378 -
Machinery and equipment 2,694,728 218,632 2,913,360
Reservoirs 3,917,184 - 3,917,184
Pipelines and water distribution system 4,224,172 - 4,224,172 Pipelines and wastewater colletion system 8,338,469 - 8,338,469 Vehicles 2,298,524 924,885 3,223,409
Infrastructure 8,708,932 8,708,932 -
Total depreciable assets 21,250,562 17,623,342 38,873,904 Total accumulated Depreciation (13,610,372) (10,955,676) (24,566,048) Total depreciable assets, net 7,640,190 6,667,666 14,307,856 Total $ 10,594,114 $ 6,846,245 $ 17,440,359
61 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

5. CAPITAL ASSETS, Continued
B. Governmental Activities
The following is a summary of changes in governmental activity capital assets for the year ended June 30, 2021:

Governmental activities depreciation expense for capital assets for the year ended June 30, 2021 was as follows:

Balance Adjustment/ Balance
July 1, 2020 Additions Deletions Reclassification June 30, 2021 Non-depreciable assets:

Land and improvements $ 2,151,948 $ - $ - $ 2,151,948 - $ Construction in progress 397,961 529,674 (125,659) - 801,976 Total non-depreciable assets 2,549,909 529,674 (125,659) - 2,953,924 Depreciable assets:

Buildings and structures 7,397,568 25,151 125,659 - 7,548,378 Machinery and equipment 2,576,089 118,639 - 2,694,728 - Vehicles 2,429,398 (130,874) - 2,298,524 -
Infrastructure 8,708,932 - - 8,708,932 -
Total depreciable assets 21,111,987 143,790 (130,874) 125,659 21,250,562 Less accumulated depreciation:

Buildings and structures (5,521,803) (189,442) - (5,711,245) - Machinery and equipment (2,218,223) (130,848) - (2,349,071) - Vehicles (1,428,929) (148,158) - (1,577,087) -
Infrastructure (3,507,715) (465,254) - (3,972,969) -
Total accumulated depreciation (12,676,670) (933,702) - (13,610,372) - Total depreciable assets, net 8,435,317 (789,912) (130,874) 125,659 7,640,190 Total governmental activities, net 10,985,226 $ $ (260,238) $ (130,874) $ 10,594,114 - $ General government $ 138,264
Public safety 237,454
Public works 408,968
Parks and recreation 149,016
Total depreciation expense $ 933,702
62 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

5. CAPITAL ASSETS, Continued
C. Business-Type Activities
The following is a summary of changes in business-type activity capital assets for the year ended June 30, 2021:

Business-type activities depreciation expense for capital assets for the year ended June 30, 2021 was as follows:

Balance Adjustment/ Balance
July 1, 2020 Additions Retirements Reclassification June 30, 2021 Non-depreciable assets:

Land 86,440 $ - $ - $ - $ 86,440 $
Construction in progress 53,103 39,036 - - 92,139
Total non-depreciable assets 139,543 39,036 - - 178,579 Depreciable assets:

Reservoirs 3,917,184 - - 3,917,184
Pipelines and water distribution system 4,224,172 - - - 4,224,172 Pipelines and wastewater collection system 8,263,624 74,845 - - 8,338,469 Machinery and equipment 170,054 48,578 - - 218,632
Vehicles 924,885 - - - 924,885
Total depreciable assets 17,499,919 123,423 - - 17,623,342 Less accumulated depreciation:

Reservoirs (1,327,358) (138,178) - - (1,465,536)
Pipelines and water distribution system (3,164,916) (71,836) - - (3,236,752) Pipelines and wastewater collection system (5,348,974) (414,899) - - (5,763,873) Machinery and equipment (176) (13,881) - - (14,057)
Vehicles (407,453) (68,005) - - (475,458)
Total accumulated depreciation (10,248,877) (706,799) - - (10,955,676) Total depreciable assets, net 7,251,042 (583,376) - - 6,667,666 Total capital assets $ 7,390,585 $ (544,340) $ - $ 6,846,245 - $ Water $ 245,066
Wastewater 461,733
Total depreciation expense $ 706,799
63 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

6. LONG-TERM DEBT
A. Governmental Activities
The following is a summary of governmental activity long-term debt transactions during the year ended June 30, 2021:

Special Assessment Bonds
The special assessment bonds were issued in an original amount of $732,475 for the purpose of facilitating improvements to the Woodstone Center. The bonds are secured by assessments levied against property owners within the assessment district and from monies on deposit in a reserve fund.

The bonds consist of 4.25 to 6.7 percent serial bonds maturing through September 2, 2023.

The annual debt service requirements on the special assessment bonds are as follows:

Refunding Lease 2021 – Truist Bank
In the 2006 fiscal year, the city entered into a financing arrangement to obtain $2,880,000 in funds for future capital projects. The general fund will be responsible for paying debt service on the governmental activities portion of the lease obligation, which is about 41 percent of the total obligation. The water and wastewater enterprises are responsible for paying the other 59 percent of the obligation. In fiscal year 2021, the City entered into a lease agreement with Truist Bank to refund the 2006 lease obligation. The agreement was for $1,139,952, bears interest at 1.10 percent on the basis of a 360-day year, is repayable in annual installments of $211,550, and matures in 2026. The difference in debt service requirements between the 2006 lease obligation agreement and the refunding lease agreement was $75,092 and resulted in an economic gain of $71,126. The City has pledged the Fire Station as collateral for the refunding lease agreement.

Due in
Balance Balance Due Within More than
July 1, 2020 Additions Retirements June 30, 2021 One Year One Year Special assessment bonds $ 90,000 $ (25,000) - $ $ 65,000 $ 30,000 $ 35,000 Capital lease-capital projects 486,855 - (486,855) - - - Refunding lease 2021 - Truist 420,626 - 420,626 - 42,216 378,410 Capital lease-renewable energy 487,946 (97,590) - 390,356 97,590 292,766 Capital lease-mobile home park 404,524 (48,695) - 355,829 47,727 308,102 Capital lease-vactor truck 21,070 (14,241) - 6,829 6,829 - Total $ 420,626 1,490,395 $ (672,381) $ $ 224,362 1,238,640 $ 1,014,278 $ Year Ending
June 30, Principal Interest Total
2022 30,000 $ 3,721 $ 33,721 $
2023 35,000 1,941 36,941
Total $ 65,000 5,662$ $70,662
64 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

6. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Refunding Lease 2021 – Truist Bank, Continued
The annual debt service requirements for governmental activities (41%) are as follows:

Other Capital Lease Obligations
Clean Renewable Energy - The City entered into a capital lease arrangement with Municipal Finance Corporation pursuant to approval from the Internal Revenue Service for the issuance of Clean Renewable Energy Bonds in the principal amount of $2,074,000 for the purpose of obtaining zero interest financing for renewable energy projects of the City. The arrangement provides for the lease of the projects to Municipal Finance Corporation by the City and the sublease of the projects back to the City by Municipal Finance Corporation in exchange for the rental payments by the City. The City's lease payments to Municipal Finance Corporation are payable from any source of legally available funds.

Mobile Home Park – The City also entered into a similar lease financing arrangement with the Municipal Finance Corporation for the purpose of obtaining partial financing for the purchase of an existing mobile home park as part of an open space program of the City. The capital lease was for $817,500 and it also is payable from any source of legally available funds.

Vactor Truck – The City entered into a capital lease arrangement with Holman Capital Corporation for the purpose of financing the acquisition of a sewer cleaning truck in the original lease amount of $265,000. The lease is payable annual payments $28,167 through 2022 and bears interest at 2.25 percent.

Year Ending
June 30, Principal Interest Total
2022 82,362 $ 4,310 $ 86,672 $
2023 83,180 3,492 86,672
2024 84,097 2,575 86,672
2025 85,025 1,647 86,672
2026 85,962 709 86,671
Total $ 420,626 $ 12,733 $433,359
65 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

6. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Other Capital Lease Obligations, Continued
As of June 30, 2021, future minimum lease payments under these capital leases are as follows:

B. Business-Type Activities
Refunding Loan 2021 – Truist Bank
The City in fiscal 2015 entered into an installment sale agreement with Municipal Finance Corporation for obtaining financing to assist in the removal of arsenic from water well seven and its treatment system. The agreement was for $1,200,000, bears interest at 4.10 percent on the basis of a 360 day year, is repayable in annual installments of $89,082, and matures in 20 years. The installment agreement was a special obligation of the City repayable solely from the net revenues of its water system; and the City pledged its water system net revenues for this purpose and for any other parity obligations.

Year Ending Renewable Mobile Home Vactor Truck
June 30, Energy Lease Park Lease Lease Total
2022 97,589 64,584 7,042 169,215
2023 97,589 64,584 - 162,173
2024 97,589 64,584 - 162,173
2025 97,589 64,584 - 162,173
2026 - 64,584 - 64,584
2027-2028 - 96,880 - 96,880
Total minimum lease payments 390,356 419,800 7,042 817,198 Less amounts
representing interest (63,971) - (213) (64,184)
Present value of net
minimum lease payments $ 390,356 $ 355,829 6,829$ 753,014$ Due in
Balance Balance Due Within More than
July 1, 2020 Additions Retirements June 30, 2021 One Year One Year Installment agreement 983,555 $ - $ (983,555) $ - -$ -$ Refunding loan 2021 - Truist 1,019,462 - 1,019,462 - 63,728 955,734 Capital lease-capital projects 672,747 (672,747) - - - - Refunding lease 2021 - Truist 606,042 - 606,042 - 59,334 546,708 State drinking water loan 75,481 (75,481) - - - -
Capital lease-vactor truck 64,256 (42,918) - 21,338 21,338 - Total $ 1,625,504 1,796,039 $ $ (1,774,701) $ 1,646,842 $ 1,502,442 144,400 $ 66 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

6. LONG-TERM DEBT, Continued
A. Government-Wide Financial Statements, Continued
Refunding Loan 2021 – Truist Bank, Continued
In fiscal year 2021, the City entered into a loan agreement with Truist Bank to refund the installment sale agreement. The agreement was for $1,019,462, bears interest at 2.09 percent on the basis of a 360-day year, is repayable in annual installments of $83,955, and matures in 2035. The loan agreement is a special obligation of the City repayable solely from the net revenues of its water system, and the City pledged its water system net revenues for this purpose and for any other parity obligations. The difference in debt service requirements between the installment sale agreement and the loan agreement was $71,782 and resulted in an economic gain of $67,445.

The loan agreement includes the following financial debt covenants:

Covenant Regarding Gross Revenues: The City shall collect rates, fees, and charges for services furnished by the Water Fund during each fiscal year to pay all maintenance and operation costs, loan repayments, and all principal and interest on any parity obligations, which are payable from net revenues, and all payments required to meet any other obligations of the City.

Covenant Regarding Net Revenues: The City shall collect rates, fees, and charges for services furnished by the Water Fund during each fiscal year, which are sufficient to yield net revenues equal to 120% of the loan repayments and any parity obligations which are payable from the net revenues.

Gross revenues, net revenues, and total debt service for the Water Fund were $2,613,289, $485,536, and $192,484 respectively for fiscal year 2021. Net revenues were equal 252% of total debt service for the Water Fund for fiscal year 2021.

The annual debt service requirements for the installment sale agreement are as follows:

Year Ending
June 30, Principal Interest Total
2022 $ 63,728 $ 20,227 $ 83,955
2023 64,655 19,300 83,955
2024 66,021 17,934 83,955
2025 67,415 16,540 83,955
2026 68,839 15,116 83,955
2027-2031 366,629 53,141 419,770
2032-2035 322,175 13,643 335,818
Total $ 155,901 1,019,462 $ 1,175,363 $
67 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

6. LONG-TERM DEBT, Continued
A. Government-Wide Financial Statements, Continued
Refunding Lease 2021 – Truist Bank
In the 2006 fiscal year, the city entered into a financing arrangement to obtain $2,880,000 in funds for future capital projects. The general fund was responsible for paying debt service on the governmental activities portion of the lease obligation, which is about 41 percent of the total obligation. The water and wastewater enterprises was responsible for paying the other 59 percent of the obligation.

In fiscal year 2021, the City entered into a lease agreement with Truist Bank to refund the 2006 lease obligation. The agreement was for $1,139,952, bears interest at 1.10 percent on the basis of a 360-day year, is repayable in annual installments of $211,550, and matures in 2026. The difference in debt service requirements between the 2006 lease obligation agreement and the refunding lease agreement was $75,092 and resulted in an economic gain of $71,126. The City has pledged the Fire Station as collateral for the refunding lease agreement. No deferred loss on refunding was reported as a result of the transaction, because the amount recognized was deemed to be trivial to the financial statements.

The annual debt service requirements for business-type activities (59%) are as follows:

Vactor Truck – The City entered into a capital lease arrangement with Holman Capital Corporation for the purpose of financing the acquisition of a sewer cleaning truck in the original lease amount of $265,000. The lease is payable annual payments $28,167 through 2022 and bears interest at 2.25 percent.

As of June 30, 2021, future minimum lease payments under these capital leases are as follows:

Year Ending
June 30, Principal Interest Total
2022 118,667 $ 6,211 $ 124,878$
2023 119,846 5,032 124,878
2024 121,168 3,709 124,877
2025 122,505 2,373 124,878
2026 123,856 1,022 124,878
Total $ 606,042 $ 18,347 $624,389
Year Ending Vactor Truck
June 30, Lease
2022 $ 21,500
Total minimum lease payments 21,500
Less amounts
representing interest (162)
Present value of net
minimum lease payments $ 21,338
68 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

7. COMPENSATED ABSENCES
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits.

There is a liability for a portion of unpaid accumulated sick leave since the City does have a policy to pay certain amounts when employees separate from service with the City.

A summary of changes in compensated absences for the year ended June 30, 2021 is as follows:

8. OTHER FUND DISCLOSURES
A. Deficit Balances
At June 30, 2021, the funds below had the following deficit fund balance or net position. The deficit balance is caused by expenditures reported in the current year that will be reimbursed in subsequent years.

9. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City carries insurance. The City, due to the costs of available coverage, participates as a member of the Redwood Empire Municipal Insurance Fund (REMIF). REMIF provides joint protection programs for public entities covering automobile, general liability, errors and omissions, property and workers compensation claims. Under the program, the City has a $5,000 retention limit similar to a deductible with the REMIF being responsible for losses above that amount up to $500,000 for liability losses, $1,000,000 for workers compensation claims, and $25,000 for property damage. The Fund carries purchased excess commercial liability insurance of $39.5 million in excess of its $500,000 limit, and a commercial property policy for $300 million. Financial information pertaining to REMIF can be obtained from its administrative offices at 414 W. Napa Street, Sonoma, California 95476.

Due Due in
Balance Balance Within More than
July 1, 2020 Additions Retirements June 30, 2021 One Year One Year Governmental activities 965,497 $ 740,824 $ (698,320) $ 1,008,001 $ 700,000 $ 308,001 $ Business-type activities 50,816 38,990 (36,753) 53,053 4,000 49,053 Total $ 779,814 1,016,313 $ (735,073) $ 1,061,054 $ 704,000 $ 357,054 $ Non-major governmental Funds:

General Capital Project $ 6,926
69 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

9. RISK MANAGEMENT, Continued
Liabilities of the City are reported in the statement of net position when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The City's only exposure to claim liabilities would be for losses, if any, not covered by REMIF.

There have been no significant changes in insurance coverages in fiscal 2021. Settlements have not exceeded coverage for each of the past three fiscal years. The City has no significant uninsured claim liabilities at June 30, 2021.

Subsequent to the end of the year, REMIF merged with California Intergovernmental Risk Authority Joint Powers Authority (CIRA).

10. PENSION PLANS
A. Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors two miscellaneous rate plans and four safety rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

B. 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 55 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 Employee’s Retirement Law. 70 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, Continued
B. Benefits Provided, Continued
The rate plan provisions and benefits in effect at June 30, 2021 are summarized as follows:

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an actuarial basis, annually and is effective on July 1 following notice of a change in the rate. Funding contributions for the Plan 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. The General Fund has typically been used to liquidate pension liabilities for governmental funds.

The City’s contributions to the Plan for the measurement period ended June 30, 2020 were $1,530,553.

The City’s contributions to the Plan for the fiscal year ended June 30, 2021 were $1,686,413.

Safety
Miscellaneous PEPRA
Miscellaneous Safety Fire
Hire date Prior to January 1,
2013
On or after
January 1, 2013
Prior to January 1
2013
Benefit formula 2.0% @ 55 2.0% @ 62 3% @ 50
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 55
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 2.0% to 2.5% 2.0% Required employee contribution rates 7.000% 6.750% 9.000% Required employer contribution rates 11.031% 7.732% 22.437% Required unfunded liability payment 495,916 $ 4,806 $ 58,704 $ Safety Police PEPRA
Safety Fire
PEPRA
Safety Police
Hire date - Fire
Prior to January 1
2013
On or after
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 57 50 - 57

2.0% 2.0% to 2.7% 2.0% to 2.7%

9.000% N/A 12.000%

22.437% 13.044% 13.044%
$ - 553,405 $ 3,336 $
Miscellaneous
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Required unfunded liability payment
Safety
71 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, Continued
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $13,864,877.

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

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

For the year ended June 30, 2021, the City recognized pension expense of $2,170,386. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Proportion - June 30, 2019 0.12714%
Proportion - June 30, 2020 0.12743%
Change - Increase (Decrease) 0.00029%
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date $ 1,686,413 $ -
Changes of assumptions - 69,925
Differences between expected and
actual experience 912,693 -
Changes in employer's proportion 40,423 50,432
Differences between the employer's
contribution and the employer's
proportionate share of contributions - 105,553
Net differences between projected
and actual earnings on plan
investments 351,133 -
Total $ 225,910 2,990,662 $
72 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, Continued
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$1,686,413 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

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

The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. Further details of the December 2017 Experience Study can be found on the CalPERS website www.calpers.ca.gov.

Discount Rate – The discount rate used to measure the total pension liability was 7.15% for the Plan.

To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

Fiscal Year
Ending June 30:
2022 $ 165,409
2023 421,820
2024 319,149
2025 171,961
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost
Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Projected Salary Increase Varies by entry age and
service
Investment Rate of Return (1) 7.15%
Mortality Derived by CalPERS
membership data for all
funds
(1) Net of pension plan investment expenses.
73 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, Continued
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both shortterm and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

New
Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (a) Years 11+ (b)
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a)
An expected inflation of 2.0% used for this period.
(b) An expected inflation of 2.92% used for this period. 74 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, Continued
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:

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

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

11. OTHER POSTEMPLOYMENT HEALTH CARE BENEFITS
A. Plan Description
The City administers the City's retired employees' healthcare plan, a single employer defined benefit health care plan. The plan provides medical benefits to eligible retired employees and their beneficiaries. City resolutions and agreements assign the authority to establish and amend benefit provisions to the City. A separate OPEB trust account has not been established by the City for the Plan.

B. Employees Covered
As of the June 30, 2019 actuarial valuation, the following current and former employees were covered by the benefit terms under the Retiree Health Plan:

Active employees 19
Inactive employees or beneficiaries currently receiving benefits 30 Total 49
1% Decrease 6.15%
Net Pension Liability $ 20,270,322
Current Discount Rate 7.15%
Net Pension Liability $ 13,864,877
1% Increase 8.15%
Net Pension Liability $ 8,590,233
75 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021
C. Contribution
The contribution requirements of plan members and the City are established and may be amended by the City. The required contribution is based on a projected pay-as-you-go financing requirements, with additional amounts to prefund benefits determined annually by the City Council. For the measurement period ended June 30, 2020, the City contributed $97,430 of current year premiums (100% of total premiums) and zero to prefund benefits. Plan members receiving benefits contributed no amounts to the total premiums. The General Fund has typically been used to liquidate OPEB liabilities for governmental funds.

D. Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2020 and was determined by an actuarial valuation dated June 30, 2019 actuarial methods and assumptions:
(1) Pre-retirement mortality information was derived from data collected during 1997 to 2015 CalPERS Experience Study dated December 2017 and post-retirement mortality information was derived from the 2007 to 2015 CalPERS Experience Study. The Experience Study Reports may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.

E. Change of Assumption
The discount rate used to measure the total OPEB liability was changed from 2.79% to 2.66% for measurement date June 30, 2020.

F. Discount Rate
The discount rate used to measure the total OPEB liability was 2.66%. The City’s OPEB Plan is an unfunded plan, therefore the discount rate was set to the rate of tax-exempt, high quality 20-year municipal bonds, as of the valuation date.

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Discount Rate 2.66%
Inflation 2.75%
Salary Increases 3.00%
Mortality(1) Derived by CalPERS
membership data for all funds
Healthcare cost trend rates: 5.00%
76 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

11. OTHER POSTEMPLOYMENT HEALTH CARE BENEFITS, Continued G. Changes in the Total OPEB Liability
The changes in the total OPEB liability for the OPEB Plan are as follows:

H. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:

Total OPEB
Liability
Balance at June 30, 2019 $ 2,682,363
Changes in the year:

Service cost 27,295
Interest on the total OPEB liability 73,479
Differences between actual and expected experience -
Changes in assumptions 44,769
Benefits paid to retirees (97,430)
Net changes 48,113
Balance at June 30, 2020 $ 2,730,476
1% Decrease - 1.66%
Total OPEB liability 3,117,252 $
Current Discount Rate - 2.66%
Total OPEB liability 2,730,476 $
1% Increase - 3.66%
Total OPEB liability 2,413,559 $
77 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

11. OTHER POSTEMPLOYMENT HEALTH CARE BENEFITS, Continued I. Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:

J. OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $50,306. For the fiscal year ended June 30, 2021, the City reported deferred outflows of resources related to OPEB from the following sources:

The $102,849 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the Total OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized as expense as follows:
1% Decrease - 4%
Total OPEB liability 2,616,336 $
Current Rate - 5%
Total OPEB liability $ 2,730,476
1% Increase - 6%
Total OPEB liability $ 2,867,626
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent to
measurement date $ 102,849 $ -
Differences between expected and
actual experience - 388,693
Changes of assumptions 132,326 101,035
Total $ 489,728 235,175 $
Fiscal Year
Ending June 30:
2022 $ (42,108)
2023 (42,108)
2024 (48,503)
2025 (54,899)
2026 (54,899)
Thereafter (114,885)
78 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

12. JOINTLY GOVERNED ORGANIZATIONS AND OPERATING AGREEMENTS Jointly governed organizations are legal entities or other organizations that result from a contractual arrangement and that are owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain an ongoing financial interest or ongoing financial responsibility. The City is a participant in the following organizations other than the insurance authority described in the preceding notes. The City is a party to the following agreement:

Santa Rosa Subregional Wastewater System - The City has an agreement with System for the treatment of wastewater as the City does not own or operate its own wastewater treatment plant. The City's obligations under the agreement are to pay to the System its share of the costs of operating the system and treatment of wastewater. The City records these payments as operating expenses in its wastewater enterprise fund.

13. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 (the Bill) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the financial reporting entity of the City of Sebastopol that previously reported a redevelopment agency within the financial reporting entity of the City as a blended component unit. The bill provides that upon dissolution of the redevelopment agency, either the City or another unit of government will agree to serve as the successor agency to hold assets until they are distributed to other units of State and Local government. The City Council of the City of Sebastopol elected to have the City become the Successor Agency for the former redevelopment agency non-housing activities and elected to not be the Successor Agency for housing activities of the former agency. Accordingly, all housing related assets and liabilities of the former agency were, effective February 1, 2012, transferred by operation of law to the County of Sonoma.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight Board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future years, successor agencies will only be allocated revenues in the amount that is necessary to pay annual estimated installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the former agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between the redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the encumbrance or expenditure of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. Prior to that date, the final seven months of the financial activity of the redevelopment agency continued to be reported in the governmental fund types of the City of Sebastopol. After the date of dissolution, the assets and financial activities of the dissolved redevelopment agency (except for those of the former agency's housing activities that were transferred to the County) are reported in a fiduciary fund (the private-purpose trust fund) in the financial statements of the City of Sebastopol.
79 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2021

13. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY, Continued
The assets and liabilities of the private purpose trust are excluded from the government wide statement of net position of the City and the Statement of Activities of the City because fiduciary fund assets are not available in any fashion for use by the City of Sebastopol.

A. Long-Term Obligations
Changes in the bonds during the year ended June 30, 2021 were as follows:

Tax Allocation Refunding Bonds 2007 Series – Original Issue On November 6, 2007, The City's former Development Agency issued $4,575,000 in subordinate tax allocation bonds, series 2007 to advance refund and retire the Agency's 1997 bond issues. The tax allocation bonds consist of $4,575,000 in serial bonds bearing interest at rates from 3.3 percent to 4.0 percent. The bonds were secured by a pledge of the former Agency's tax increment revenues, and were fully paid off as of June 30, 2021.

14. SUBSEQUENT EVENTS
Dissolution of Successor Agency Private Purpose Trust Fund: Subsequent to the end of the year, the City received approval from the State of California Department of Finance to dissolve the City of Sebastopol Successor Agency (Agency).

Lease Purchase Agreement – Energy Efficiency Project: Subsequent to the end of the year, the City entered into a tax exempt lease purchase agreement with Signature Public Funding Corporation for financing energy efficiency and water conservation measures, design services, and acquisition of new roof and solar PV measures at the City library. Financing is for $4,988,230, to be repaid over a 15 year period.

15. EXTRAORDINARY ITEM – THEFT OF INVESTMENT FUNDS
The City of Sebastopol is a participant in the County of Sonoma Pooled Investment fund. During the year reported, the County of Sonoma Treasurer paid $1,200,000 from the City’s accounts based on a fraudulent instruction received by the County.

The City and County are still collecting information about the theft and potential financial resolution. Due to the uncertainty of the amount of potential financial recovery, and timing, the entire $1,200,000 is reported as an extraordinary loss. The loss is allocated to governmental activities and business-type activities based on their respective weight in cash balances.

Due in
Balance Balance Due Within More than
July 1, 2020 Additions Retirements June 30, 2021 One Year One Year Tax allocation refunding bonds 415,000 $ - $ (415,000) $ - $ -$ -$ 80 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

REQUIRED

SUPPLEMENTARY INFORMATION
81 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

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82 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2021

1. BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all government funds. Appropriations lapse at fiscal year-end. The appropriated budget is prepared by fund, function and department. The City manager may make transfers of appropriations within a department.

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

Encumbrance accounting is not employed in governmental funds.

The following are the budget comparison schedule for the General Fund 83 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2021

1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Comparison Schedule - General Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes:

Property $ 2,742,700 $ 2,733,000 $ 2,770,982 $ 37,982
Real property transfer 39,000 39,000 79,547 40,547
Transient occupancy tax 400,000 400,000 402,255 2,255
Sales and use 3,912,875 4,506,100 5,152,242 646,142
Franchises 335,500 335,500 363,167 27,667
Subtotal 7,430,075 8,013,600 8,768,193 754,593
Licenses, permits and fees:

Business licenses 130,000 130,000 141,524 11,524
Animal licenses 12,900 12,900 13,845 945
Building permits 150,000 150,000 343,106 193,106
Subtotal 292,900 292,900 498,475 205,575
Fines, forfeitures and penalties:

Vehicle code 27,000 27,000 16,415 (10,585)
Parking fines 19,500 19,500 14,024 (5,476)
Subtotal 46,500 46,500 30,439 (16,061)
Interest and rentals:

Investment earnings 155,000 155,825 (22,549) (178,374)
Rent - Cell Tower 40,000 40,000 39,962 (38)
Rent - other 5,500 5,500 5,442 (58)
Subtotal 200,500 201,325 22,855 (178,470)
Intergovernmental:

State motor vehicle in-lieu tax 3,500 3,500 5,681 2,181 Reimbursements 21,100 6,100 5,622 (478)
Other 145,600 160,600 703,854 543,254
Subtotal 170,200 170,200 715,157 544,957
Charges for current services:

Sales of publications 300 300 850 550
Planning fees 30,000 30,000 25,563 (4,437)
Building inspection - - 642 642
Encroachment Permits 30,000 30,000 47,835 17,835
Public Works Services 1,500 1,500 654 (846)
Public Safety Services 32,500 29,000 18,135 (10,865)
Fire Inspection Fees 30,000 30,000 69,256 39,256
Other charges 4,300 19,000 28,488 9,488
Subtotal 128,600 139,800 191,423 51,623
Donations and miscellaneous:

Redevelopment administration 210,125 210,125 210,474 349 Miscellaneous 52,500 52,500 103,655 51,155
Subtotal 262,625 262,625 314,129 51,504
Total revenues 8,531,400 9,126,950 10,540,671 1,413,721 Budget Amounts
84 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2021

1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Comparison Schedule - General Fund, Continued Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
EXPENDITURES:

Current:

General Government:

City Council 257,729 257,730 213,156 44,574
City Manager 324,758 304,758 331,630 (6,872)
City Attorney 142,623 142,623 152,926 (10,303)
City Clerk 306,978 321,978 285,487 36,491
Finance and accounting 268,756 268,756 219,681 49,075
Planning 544,505 536,505 494,464 50,041
Building inspection 226,957 228,457 206,486 20,471
General government non-departmental 206,394 338,944 366,924 (27,980) Subtotal 2,252,200 2,426,251 2,270,754 155,497
Public safety:

Police protection 5,012,115 4,826,115 5,169,104 (156,989) Animal control 20,200 21,200 21,081 119
Fire protection 1,109,680 1,100,380 1,096,217 4,163
Fire emergency procedures 5,500 5,500 6,286 (786)
Subtotal 5,961,495 6,139,195 6,292,688 (153,493)
Public works:

Corporation Yard 244,669 89,399 82,671 6,728
Streets Maintenance 478,550 521,550 427,313 94,237
Parking Lots Maintenance 124,805 127,805 112,809 11,996 Engineering 266,346 281,451 255,089 11,257
Subtotal 1,132,475 1,002,100 877,882 124,218
Parks and recreation:

Parks & Landscaping Maintenance 466,250 466,250 408,310 57,940 Ives Pool 134,985 128,985 128,566 419
Recreation administration and programs 295,570 295,570 255,162 40,408 Subtotal 896,805 890,805 792,038 98,767
Capital outlay 190,100 193,600 143,789 46,311
Debt service:

Principal 152,159 152,159 178,335 (26,176)
Interest 52,631 52,630 15,064 37,566
Cost of issuance - - 8,488 (8,488)
Subtotal 204,790 204,789 201,887 2,902
Total expenditures 10,853,240 10,641,365 10,579,038 274,202

REVENUES OVER (UNDER)
EXPENDITURES (2,109,965) (1,726,290) (38,367) 1,687,923 Budget Amounts
85 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2021

1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Comparison Schedule - General Fund, Continued Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
OTHER FINANCING SOURCES (USES):

Proceeds from debt issuance - - 278,022 278,022
Payment to escrow - - (262,426) (262,426)
Transfers in 102,000 102,000 79,367 (22,633)
Transfers out (190,000) (190,000) (98,247) 91,753
Total other financing sources (uses) (88,000) (88,000) (3,284) 84,716 EXTRAORDINARY ITEM:

Theft of investment funds - (1,200,000) (819,039) 380,961 Net change in fund balances $ (2,197,965) $ (3,014,290) (860,690) $ 2,153,600 FUND BALANCES:

Beginning of year 10,142,807
End of year $ 9,282,117
Budget Amounts
86 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2021

2. DEFINED BENEFIT PENSION PLAN
A. Schedule of the City’s Proportionate Share of the Net Pension Liability - Last 10 Years* B. Schedule of Contributions - Last 10 Years*
Fiscal year: 2021 2020 2019 2018 2017 2016 2015
Measurement date: 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Proportion of the net pension liability $ 13,028,541 13,864,877 $ 12,272,694 $ 12,460,116 $ 11,055,177 $ 8,978,404 $ $ 8,365,442 Proportionate share of the net pension liability 0.127430% 0.127140% 0.127360% 0.125641% 0.127760% 0.130805% 0.134439% Covered payroll $ 4,407,536 $ 4,277,495 $ 4,075,272 $ 3,959,602 $ 3,816,628 $ 3,636,221 $ 3,289,261 Proportionate share of the net pension liability
as a percentage of covered payroll 314.57% 304.58% 301.15% 314.68% 289.66% 246.92% 254.33% Plan's share of fiduciary net position as a
percentage of total pension liability 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82% Notes to Schedule
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from 7.65% to 7.15% in fiscal year 2018.

The CalPERS mortality assumptions were adjusted in fiscal year 2019. * Historical information is required only for measurement periods for which GASB 68 is applicable Fiscal Year 2021 2020 2019 2018 2017 2016 2015
Contractually required contribution
(actuarially determined) $ 1,686,413 $ 1,530,553 $ 1,343,860 $ 1,187,535 $ 1,099,458 $ 920,324 $ 796,771 Contribution in relation to the
contractually required contributions (1,686,413) (1,530,553) (1,343,860) (1,187,535) (1,099,458) (920,324) (796,771) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 4,679,847 $ 4,407,536 $ 4,277,495 $ 4,075,272 $ 3,959,602 $ 3,816,628 $ 3,636,221 Contributions as a percentage of covered
payroll 36.04% 34.73% 31.42% 29.14% 27.77% 24.11% 21.91% Notes to Schedule
Methods and assumptions used to determine required contributions:

Valuation date: 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method: (1) (1) (1) (1) (1) (1) (1)
Assets valuation method: Market Value Market Value Market Value Market Value Market Value Market Value 15 Year Smoothed
Market
Method
Inflation: 2.50% 2.63% 2.75% 2.75% 2.75% 2.75% 2.75%
Salary increases: (2) (2) (2) (2) (2) (2) (2)
Investment rate of return: 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age: (3) (3) (3) (3) (3) (3) (3)
Mortality: (4) (4) (4) (4) (4) (4) (4)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%@62 (4)
* Historical information is required only for measurement periods for which GASB 68 is applicable.

Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
87 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2021

3. OTHER POSTEMPLOYMENT HEALTH CARE BENEFITS
A. Schedule of Changes in the City’s Total OPEB Liability and Related Ratios* Total OPEB Liability 2020 2019 2018 2017
Changes in the year:

Service cost $ 27,295 $ 56,412 $ 54,769 $ 58,870
Interest on the total OPEB liability 73,479 89,484 90,545 81,308 Differences between actual and expected experience - (492,345) - - Changes in assumptions 44,769 75,694 57,987 (168,395)
Benefits paid to retirees (97,430) (99,403) (87,182) (71,368) Net changes 48,113 (370,158) 116,119 (99,585)
Total OPEB Liability beginning of the year 2,682,363 3,052,521 2,936,402 3,035,987 Total OPEB Liability end of the year $ 2,730,476 $ 2,682,363 $ 3,052,521 $ 2,936,402 Covered-employee payroll $ 4,272,937 $ 4,137,211 $ 3,956,662 $ 3,982,276 City's total OPEB liability as a percentagee of
covered-employee payroll 63.90% 64.84% 77.15% 73.74%
Notes to Schedule
* Historical information is required only for measurement periods for which GASB 75 is applicable.

Changes of assumptions:
2020 - Discount rate was changed to 2.66%.
2019 - Discount rate was changed to 2.79%. Mortality rates were updated based on CalPERS 2015 Experience Study. 2018 - Discount rate was changed to 2.98%.

Fiduciary Net Position - There are currently no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan. 88 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

SUPPLEMENTARY INFORMATION
89 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Police Grant Fund accounts for accounts for the revenues and expenditures of State and Federal grants such as State SLESF (Supplemental Law Enforcement Services Fund).

Gas Tax Fund accounts for funds from the State of California under the Street and Highway Code Sections 2103, 2105, 2106, 2107 and 2107.5. The use of funds is restricted to street related projects, which can include related public facilities for non-motorized traffic, e.g. bike and pedestrian paths.

Park in Lieu receives revenue from new residential and hotel development,to mitigate the impact of such new development on City park and recreation facilities. The use of revenues from the Fund is restricted to park and recreation capital improvements.

Traffic Impact was established to reduce the traffic impacts caused by new development within the City limits and certain public improvements (transportation system infrastructure) and revenue collected from these fees shall be used solely to pay for the City’s future construction of facilities or services or reimburse the City for facilities constructed by the City with funds advanced by the City from other sources.

Street Lighting Assessment is established to receive special assessment district monies used for maintenance and or servicing of existing and future public lighting facilities, and the installation or construction of public lighting for the maintenance of servicing thereof, including grading, clearing, removal of debris, the installation of curbs and gutters, walls, sidewalks or paving or water, irrigation, drainage or electrical facilities.

Asset Forfeiture is used for specified police activities (excluding regular salary) from confiscated assets of convicted drug felons.

Downtown Association is used to account for revenues and expenditures for the Downtown Association District.

Art in Lieu accounts for developer contributions in lieu of installation of public art on project sites and income received from art programs and events to fund public artwork, cultural programs, maintenance/conservation, and administrative costs relating to the Art in Public Places Program.

Measure M receives funding from the County for construction of eligible transportation projects that improve the quality of roads, sidewalks and bike lanes.

Housing General Plan identifies the City’s housing conditions and needs, establishes the goals, objectives, and policies that are the foundation of the City’s housing and growth strategy.

Street Reserve accounts for the tax reserved for local streets and roads.

Vehicle Abatement accounts for monies for inspection, mark, or tow the vehicles that appear to be abandoned, non-operable, or not registered.

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
90 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Inclusionary and Linkage Housing accounts for revenue receives from fee payment to be used for the exclusive purpose of providing housing affordable to low and moderate income households in the City for construction of three or more new dwelling units, or for the division or subdivision of land into three or more lots for residential use.

Building Permit Incremental Fund accounts for revenue receives from construction inspection and plan checks to fund training, certification exams and courses.

Community Development Block Grant accounts for revenue and expenditures of CDBG funds awarded by the Department of Housing and Urban Development.

BSCC 1:4:1 Youth Fund accounts for monies for the Youth Offender Block Grant.

SB1 Road and Maintenance Fund accounts for revenue and expenditures of SB1 monies.

General Capital Projects Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities.

Undergrounding is an in-lieu fee paid by development projects, where the City Engineer has determined physical undergrounding of overhead utilities is not practical. The Fund is used for general City utility undergrounding projects.

Woodstone Assessment District is the bonds which were issued to finance construction including street improvements, drainage, streets lights and signalization to the Fairfield Inn (formerly Holiday Inn), and acquisition of certain public improvements specically benefitting properties located within the boundaries of City Assessement District 1992-1 (Woodstone Center).

Clean Renewable Energy Bonds is used for projects include solar panels to generate electricity at the City Hall/Library complex, the Police station and at the sewer lift station, and funds to implement projects for pedestrian safety contained in the Street Smart Study.

CAPITAL PROJECTS FUNDS

DEBT SERVICE FUNDS

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS, CONTINUED
91 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Police Park in Traffic
Grants Gas Tax Lieu Impact
ASSETS
Cash and investments $ 16,787 $ 45 $ 29,073 $ 379,017
Restricted cash and investments - - - -
Accounts receivable 7,398 - - -
Taxes receivable - - - -
Accrued interest receivable 81 7 50 466
Assessment receivable - - - -
Notes receivable - - - -
Total assets $ 24,266 $ 52 $ 29,123 $ 379,483

LIABILITIES, DEFERRED INFLOWS OF

RESOURCE AND FUND BALANCES
Liabilities:

Accounts payable - - - -
Due to other funds - - - -
Unearned revenues - - - -
Total liabilities - - - -
Deferred inflows of resources:

Unavailable revenue - - - -
Fund Balances:

Restricted for :

Highways and streets - - - 379,483
Public safety 24,266 52 - -
Community promotion - - - -
Debt service - - - -
Affordable housing - - - -
Parks and recreation - - 29,123 -
Committed for street projects - - - -
Unassigned - - - -
Total fund balances 24,266 52 29,123 379,483
Total liabilities, deferred inflows
of resources, and fund balances $ 24,266 $ 52 $ 29,123 $ 379,483 Special Revenue
92 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Street Lighting Asset Downtown Art in Housing
Assessment Forfeiture Association Lieu Measure M General Plan Street Reserve $ 41,675 $ 10,080 $ 1,742 $ 125,999 $ 298,615 $ 107,394 $ 442,393 - - - - - - -
- - - - - - -
1,826 - - - 43,060 - -
39 12 2 160 379 130 538
- - - - - - -
- - - - - - -
$ 43,540 $ 10,092 $ 1,744 $ 126,159 $ 342,054 $ 107,524 $ 442,931 143 - 1,400 - - - -
- - - - - - -
- 7,893 - - - - -
143 7,893 1,400 - - - -
- - - - - - -
43,397 - - 342,054 - - -
- 2,199 - - - - -
- - 344 - - - -
- - - - - - -
- - - - 107,524 - -
- - 126,159 - - - -
- - - - - 442,931 -
- - - - - - -
43,397 2,199 344 126,159 342,054 107,524 442,931
$ 43,540 $ 10,092 $ 1,744 $ 126,159 $ 342,054 $ 107,524 $ 442,931 Special Revenue
93 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Inclusionary Building Permit Community
Vehicle and Linkage Incremental Development
Abatement Housing Fund Block Grant
ASSETS
Cash and investments 8,004 $ 132,763 $ 48,329 $ - $
Restricted cash and investments - - - -
Accounts receivable - - - 120,640
Taxes receivable - - - -
Accrued interest receivable 8 155 57 -
Assessment receivable - - - -
Notes receivable - - - -
Total assets $ 132,918 8,012 $ 48,386 $ 120,640 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCE AND FUND BALANCES
Liabilities:

Accounts payable - - - -
Due to other funds - - - 120,640
Unearned revenues - - - -
Total liabilities - - - 120,640
Deferred inflows of resources:

Unavailable revenue - - - -
Fund Balances:

Restricted for :

Highways and streets - - - -
Public safety 8,012 - - -
Community promotion - - - -
Debt service - - - -
Affordable housing - 132,918 - -
Parks and recreation - - - -
Committed for street projects - - 48,386 -
Unassigned - - - -
Total fund balances 8,012 132,918 48,386 -
Total liabilities, deferred inflows
of resources, and fund balances $ 8,012 $ 132,918 $ 48,386 $ 120,640 Special Revenue
94 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Total
Woodstone Clean Non-Major
BSCC SB1 Road and General Capital Assessment Renewable Governmental 1:4:1 Youth Maintenance Undergrounding Project District Energy Bonds Funds $ 398,496 - $ $ 244,156 $ 77,220 $ - $ 18,171 $ 2,379,959 - - - - 37,347 - 37,347
- 26,165 - - - 154,203 -
- - - - - - 44,886
- 468 297 - - - 2,849
- - - - 65,000 - 65,000
- - - - 204,989 - 204,989
$ 425,129 - $ $ 244,453 $ 77,220 $ 102,347 $ 223,160 $ 2,889,233 - - - 84,146 - - $ 85,689
- - - - 14,847 135,487 -
- - - - - - 7,893
- - - 84,146 14,847 229,069 -
- - - - 65,000 204,989 269,989
425,129 - 244,453 - - 1,434,516 -
- - - - - - 34,529
- - - - - - 344
- - - - 22,500 18,171 40,671
- - - - - 240,442 -
- - - - - 155,282 -
- - - - - 491,317 -
- - - (6,926) - - (6,926)
425,129 - 244,453 (6,926) 22,500 18,171 2,390,175
$ 425,129 - $ $ 244,453 $ 77,220 $ 102,347 $ 223,160 $ 2,889,233 Special Revenue Capital Project Debt Service
95 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Police Park in Traffic
Grants Gas Tax Lieu Impact
REVENUES:

Property taxes $ - $ - $ - $ -
Sales and use taxes - - - -
Licenses and permits - - - -
Intergovernmental 115,336 175,904 - -
Interest and rents 345 45 156 2,398
Charges for services - - 72,039 57,341
Miscellaneous 798 - - -
Total revenues 116,479 175,949 72,195 59,739
EXPENDITURES:

Current:

General Government - - - -
Public works 187,163 - - -
Capital outlay - - - -
Debt service:

Principal - - 20,693 -
Interest - - 14,423 -
Cost of issuance - - 4,354 -
Total expenditures 187,163 - 39,470 -

REVENUES OVER
(UNDER) EXPENDITURES 116,479 (11,214) 32,725 59,739
OTHER FINANCING SOURCES (USES):

Proceeds from debt issuance - 142,604 - -
Payment to escrow - (134,604) - -
Transfers in - 8,800 - -
Transfers out (100,000) - (1,067) (47,593)
Total other financing sources (uses) (100,000) 8,800 6,933 (47,593) Net change in fund balances 16,479 (2,414) 39,658 12,146 FUND BALANCES:

Beginning of the year 7,787 2,466 (10,535) 367,337
End of year $ 24,266 $ 52 $ 29,123 $ 379,483
Special Revenue
96 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Street Lighting Asset Downtown Art in Housing
Assessment Forfeiture Association Lieu Measure M General Plan Street Reserve $ - 121,223 $ - $ - $ - $ - $ - $
- - - - 169,689 - -
- - 8,959 - - - -
- - - - - - -
75 314 - 733 2,294 713 2,651
- - - - - 16,307 -
- - - 250 - - -
75 121,537 8,959 983 171,983 17,020 2,651
- 11,986 8,700 16,667 - - -
- 96,796 - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
108,782 - 8,700 16,667 - - -
12,755 75 259 (15,684) 171,983 17,020 2,651
- - - - - - -
- - - - - - -
- - - - - - -
- - - (1,098) (91,639) - -
- - - (1,098) (91,639) - -
12,755 75 259 (16,782) 80,344 17,020 2,651
30,642 2,124 85 142,941 261,710 90,504 440,280
$ 43,397 $ 2,199 $ 344 $ 126,159 $ 342,054 $ 107,524 $ 442,931 Special Revenue
97 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Inclusionary Building Permit Community
Vehicle and Linkage Incremental Development
Abatement Housing Fund Block Grant
REVENUES:

Property taxes - $ - $ - $ - $
Sales and use taxes - - - -
Licenses and permits - - - -
Intergovernmental - - 240,853 -
Interest and rents 50 749 326 -
Charges for services 3,044 69 13,193 -
Miscellaneous - - - -
Total revenues 3,094 818 13,519 240,853
EXPENDITURES:

Current:

General Government - - 180 -
Public works - - - -
Capital outlay - - - -
Debt service:

Principal - - - -
Interest - - - -
Cost of issuance - - - -
Total expenditures - - 180 -

REVENUES OVER
(UNDER) EXPENDITURES 3,094 818 13,339 240,853
OTHER FINANCING SOURCES (USES):

Proceeds from debt issuance - - - -
Payment to escrow - - - -
Transfers in - - - -
Transfers out - (505) (240,853) -
Total other financing sources (uses) - (505) (240,853) - Net change in fund balances 3,094 313 13,339 -
FUND BALANCES:

Beginning of the year 4,918 132,605 35,047 -
End of year $ 132,918 8,012 $ 48,386 $ - $
Special Revenue
98 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Total
Woodstone Clean Non-Major
BSCC SB1 Road and General Capital Assessment Renewable Governmental 1:4:1 Youth Maintenance Undergrounding Project District Energy Bonds Funds $ - - $ - $ - $ 32,512 $ - $ 153,735 $
- - - - - - 169,689
- - - - - - 8,959
154,603 - - - - - 686,696
2,926 34 1,463 - 2 - 15,274
- - - - - 8,488 170,481
- - - - - - 1,048
157,529 34 1,463 - 32,514 8,488 1,205,882
- - - - - - 37,533
- - - - - - 283,959
- - - 536,283 - - 536,283
- - - - 25,000 51,323 97,016
- - - - 8,371 - 22,794
- - - - - - 4,354
- - 536,283 - 33,371 51,323 981,939
34 157,529 1,463 (536,283) (857) (42,835) 223,943
- - - - - 142,604 -
- - - - - (134,604) -
- - 529,357 - - 31,024 569,181
(7,373) (29,149) - - - (519,277) -
(7,373) (29,149) 529,357 - - 31,024 57,904
(7,339) 128,380 1,463 (6,926) (857) (11,811) 281,847
7,339 296,749 242,990 - 23,357 29,982 2,108,328
$ 425,129 - $ $ 244,453 $ (6,926) $ 22,500 $ 18,171 $ 2,390,175 Special Revenue Capital Project Debt Service
99 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police Grants
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 100,000 $ 100,000 $ 115,336 $ 15,336 Interest and rents - 120 345 225
Miscellaneous 810 810 798 (12)
Total revenues 100,810 100,930 116,479 15,549
EXPENDITURES:

Current:

Public safety - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 100,930 100,810 116,479 15,549
OTHER FINANCING SOURCES (USES):

Transfers out (100,000) (100,000) (100,000) -
Total other financing sources (uses) (100,000) (100,000) (100,000) - Net change in fund balances $ 930 810 $ 16,479 15,549 $ FUND BALANCES:

Beginning of the year 7,787
End of year $ 24,266
Budget Amounts
100 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 192,150 $ 192,150 $ 175,904 $ (16,246) Interest and rents - - 45 45
Total revenues 192,150 192,150 175,949 (16,201)
EXPENDITURES:

Current:

Public works 186,200 159,900 187,163 (27,263)
Total expenditures 159,900 186,200 187,163 (27,263)

REVENUES OVER
(UNDER) EXPENDITURES 32,250 5,950 (11,214) (43,464)
OTHER FINANCING SOURCES (USES):

Transfers in - - 8,800 8,800
Total other financing sources (uses) - - 8,800 8,800
Net change in fund balances $ 32,250 5,950 $ (2,414) $ (34,664) FUND BALANCES:

Beginning of the year 2,466
End of year $ 52
Budget Amounts
101 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Park in Lieu
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 126,943 $ 303,943 $ - $ (303,943)
Interest and rents 1,500 500 156 (344)
Charges for services 25,000 88,200 72,039 (16,161)
Miscellaneous - 28,000 - (28,000)
Total revenues 153,443 420,643 72,195 (348,448)
EXPENDITURES:

Debt service:

Principal 22,775 15,735 20,693 (4,958)
Interest 8,695 15,735 14,423 1,312
Cost of issuance - - 4,354 (4,354)
Total expenditures 31,470 31,470 39,470 (8,000)

REVENUES OVER
(UNDER) EXPENDITURES 389,173 121,973 32,725 (356,448)
OTHER FINANCING SOURCES (USES):

Proceeds from debt issuance - - 142,604 142,604
Payment to escrow - - (134,604) (134,604)
Transfers out (120,000) (335,897) (1,067) 334,830
Total other financing sources (uses) (120,000) (335,897) 6,933 342,830 Net change in fund balances $ 53,276 1,973 $ 39,658 $ (13,618) FUND BALANCES:

Beginning of the year (10,535)
End of year $ 29,123
Budget Amounts
102 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Impact
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 3,700 $ 3,000 $ 2,398 $ (602)
Charges for services 24,000 24,000 57,341 33,341
Total revenues 27,700 27,000 59,739 32,739
EXPENDITURES:

Current:

Public safety - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 27,000 27,700 59,739 32,739
OTHER FINANCING SOURCES (USES):

Transfers out (170,100) (66,500) (47,593) 18,907
Total other financing sources (uses) (170,100) (66,500) (47,593) 18,907 Net change in fund balances $ (142,400) $ (39,500) 12,146 $ 51,646 FUND BALANCES:

Beginning of the year 367,337
End of year $ 379,483
Budget Amounts
103 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Lighting Assessment
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Property taxes $ 122,931 $ 122,931 $ 121,223 $ (1,708)
Interest and rents - - 314 314
Total revenues 122,931 122,931 121,537 (1,394)
EXPENDITURES:

Current:

General government 12,550 12,550 11,986 564
Public works 117,450 117,450 96,796 20,654
Total expenditures 130,000 130,000 108,782 21,218
Net change in fund balances $ (7,069) $ (7,069) 12,755 $ 19,824 FUND BALANCES:

Beginning of the year 30,642
End of year $ 43,397
Budget Amounts
104 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Asset Forfeiture
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ 75 $ 75
Total revenues - - 75 75
EXPENDITURES:

Current:

Public safety - - - -
Total expenditures - - - -
Net change in fund balances $ - - $ 75 75 $
FUND BALANCES:

Beginning of the year 2,124
End of year $ 2,199
Budget Amounts
105 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Downtown Association
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Licenses and permits $ 8,760 $ 8,760 $ 8,959 $ 199
Total revenues 8,760 8,760 8,959 199
EXPENDITURES:

Current:

General government 8,000 8,700 8,700 -
Total expenditures 8,700 8,000 8,700 -
Net change in fund balances $ 60 760 $ 259 199 $
FUND BALANCES:

Beginning of the year 85
End of year $ 344
Budget Amounts
106 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Art in Lieu
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ 733 $ 733
Charges for services 15,540 10,000 - (10,000)
Miscellaneous - - 250 250
Total revenues 10,000 15,540 983 (9,017)
EXPENDITURES:

Current:

General government 93,000 95,000 16,667 78,333
Total expenditures 95,000 93,000 16,667 78,333

REVENUES OVER
(UNDER) EXPENDITURES (77,460) (85,000) (15,684) 69,316
OTHER FINANCING SOURCES (USES):

Transfers out - - (1,098) (1,098)
Total other financing sources (uses) - - (1,098) (1,098) Net change in fund balances $ (77,460) $ (85,000) (16,782) $ 68,218 FUND BALANCES:

Beginning of the year 142,941
End of year $ 126,159
Budget Amounts
107 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure M
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Sales and use taxes $ 162,708 $ 125,160 $ 169,689 $ 44,529 Interest and rents 2,000 1,000 2,294 1,294
Total revenues 164,708 126,160 171,983 45,823
EXPENDITURES:

Capital outlay - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 126,160 164,708 171,983 45,823
OTHER FINANCING SOURCES (USES):

Transfers in 45,000 11,000 - (11,000)
Transfers out (256,900) (111,000) (91,639) 19,361
Total other financing sources (uses) (211,900) (100,000) (91,639) 8,361 Net change in fund balances $ (47,192) $ 26,160 80,344 $ 54,184 FUND BALANCES:

Beginning of the year 261,710
End of year $ 342,054
Budget Amounts
108 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing General Plan
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents 500 $ 1,500 $ 713 $ (787) $
Charges for services 11,050 12,000 16,307 4,307
Total revenues 11,550 13,500 17,020 3,520
EXPENDITURES:

Current:

General government - - - -
Total expenditures - - - -
Net change in fund balances $ 13,500 11,550 $ 17,020 3,520 $ FUND BALANCES:

Beginning of the year 90,504
End of year $ 107,524
Budget Amounts
109 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Reserve
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 5,300 $ 5,300 $ 2,651 $ (2,649)
Total revenues 5,300 5,300 2,651 (2,649)
EXPENDITURES:

Capital outlay - - - -
Total expenditures - - - -
Net change in fund balances $ 5,300 5,300 $ 2,651 $ (2,649) FUND BALANCES:

Beginning of the year 440,280
End of year $ 442,931
Budget Amounts
110 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Vehicle Abatement
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ 50 $ 50
Charges for services 50 50 3,044 2,994
Total revenues 50 50 3,094 3,044
EXPENDITURES:

Current:

General government - - - -
Total expenditures - - - -
Net change in fund balances $ 50 50 $ 3,094 3,044 $
FUND BALANCES:

Beginning of the year 4,918
End of year $ 8,012
Budget Amounts
111 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Inclusionary and Linkage Housing
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 143,700 - $ $ - $ (143,700)
Interest and rents 1,500 500 749 249
Charges for services 16,000 9,500 69 (9,431)
Total revenues 17,500 153,700 818 (152,882)
EXPENDITURES:

Current:

General government - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 153,700 17,500 818 (152,882)
OTHER FINANCING SOURCES (USES):

Transfers out - (143,700) (505) 143,195
Total other financing sources (uses) - (143,700) (505) 143,195 Net change in fund balances $ 10,000 17,500 $ 313 $ (9,687) FUND BALANCES:

Beginning of the year 132,605
End of year $ 132,918
Budget Amounts
112 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Building Permit Incremental Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ 326 $ 326
Charges for services 6,000 11,900 13,193 1,293
Total revenues 6,000 11,900 13,519 1,619
EXPENDITURES:

Current:

General government 6,500 - 180 (180)
Total expenditures - 6,500 180 (180)

REVENUES OVER
(UNDER) EXPENDITURES (500) 11,900 13,339 1,439
OTHER FINANCING SOURCES (USES):

Transfers out - (2,000) - 2,000
Total other financing sources (uses) - (2,000) - 2,000
Net change in fund balances $ (500) $ 9,900 13,339 $ 3,439 FUND BALANCES:

Beginning of the year 35,047
End of year $ 48,386
Budget Amounts
113 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Block Grant
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 355,100 - $ $ 240,853 $ (114,247)
Miscellaneous - 135,000 - (135,000)
Total revenues 490,100 - 240,853 (249,247)
EXPENDITURES:

Current:

General government - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 490,100 - 240,853 (249,247)
OTHER FINANCING SOURCES (USES):

Transfers out - (490,100) (240,853) 249,247
Total other financing sources (uses) - (490,100) (240,853) 249,247 Net change in fund balances $ - - $ - - $
FUND BALANCES:

Beginning of the year -
End of year $ -
Budget Amounts
114 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual BSCC 1:4:1 Youth
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ 34 $ 34
Total revenues - - 34 34
EXPENDITURES:

Current:

Public safety - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES - - 34 34
OTHER FINANCING SOURCES (USES):

Transfers out - - (7,373) (7,373)
Total other financing sources (uses) - - (7,373) (7,373) Net change in fund balances $ - - $ (7,339) $ (7,339)
FUND BALANCES:

Beginning of the year 7,339
End of year $ -
Budget Amounts
115 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual SB1 Road and Maintenance
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 141,218 $ 135,500 $ 154,603 $ 19,103 Interest and rents - - 2,926 2,926
Total revenues 141,218 135,500 157,529 22,029
EXPENDITURES:

Current:

General government - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 135,500 141,218 157,529 22,029
OTHER FINANCING SOURCES (USES):

Transfers out (113,870) - (29,149) (29,149)
Total other financing sources (uses) (113,870) - (29,149) (29,149) Net change in fund balances $ 135,500 27,348 $ 128,380 $ (7,120) FUND BALANCES:

Beginning of the year 296,749
End of year $ 425,129
Budget Amounts
116 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Undergrounding
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 1,000 $ 4,000 $ 1,463 $ (2,537)
Total revenues 1,000 4,000 1,463 (2,537)
EXPENDITURES:

Capital outlay - - - -
Total expenditures - - - -
Net change in fund balances $ 4,000 1,000 $ 1,463 $ (2,537) FUND BALANCES:

Beginning of the year 242,990
End of year $ 244,453
Budget Amounts
117 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Capital Projects
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Miscellaneous $ - $ - $ - $ -
Total revenues - - - -
EXPENDITURES:

Capital outlay 17,260 - 536,283 (519,023)
Total expenditures 17,260 - 536,283 (519,023)

REVENUES OVER
(UNDER) EXPENDITURES - (17,260) (536,283) (519,023)
OTHER FINANCING SOURCES (USES):

Transfers in 615,870 1,246,197 529,357 (716,840)
Total other financing sources (uses) 1,246,197 615,870 529,357 (716,840) Net change in fund balances $ 1,228,937 615,870 $ (6,926) $ (1,235,863) FUND BALANCES:

Beginning of the year -
End of year $ (6,926)
Budget Amounts
118 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Woodstone Assessment District
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Property taxes $ 33,400 $ 33,400 $ 32,512 $ (888)
Interest and rents - - 2 2
Total revenues 33,400 33,400 32,514 (886)
EXPENDITURES:

Debt service:

Principal 30,000 30,000 25,000 5,000
Interest 11,030 11,030 8,371 2,659
Total expenditures 41,030 41,030 33,371 7,659
Net change in fund balances $ (7,630) $ (7,630) (857) $ 6,773 FUND BALANCES:

Beginning of the year 23,357
End of year $ 22,500
Budget Amounts
119 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Clean Renewable Energy Bonds
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ - $ - $ 8,488 $ 8,488
Total revenues - - 8,488 8,488
EXPENDITURES:

Debt service:

Principal $ 20,299 20,299 51,323 (31,024)
Total expenditures 20,299 20,299 51,323 (31,024)

REVENUES OVER
(UNDER) EXPENDITURES (20,299) (20,299) (42,835) (22,536) OTHER FINANCING SOURCES (USES):

Transfers in - - 31,024 31,024
Total other financing sources (uses) - - 31,024 31,024
Net change in fund balances $ (20,299) $ (20,299) (11,811) $ 8,488 FUND BALANCES:

Beginning of the year 29,982
End of year $ 18,171
Budget Amounts
120 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Index
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

STATISTICAL SECTION
This part of the City of Sebastopol’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City.

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability issues additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 121 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2012 2013 2014 2015
Governmental Activities
Net Investment In Capital Assets $ 7,555,847 $ 7,351,269 $ 7,657,875 $ 8,085,194 Restricted 6,152,199 7,314,525 7,398,898 4,128,962
Unrestricted 1,002,469 1,512,494 1,926,598 (4,937,921)
Total Governmental Activities Net Position $ 14,710,515 $ 16,178,288 $ 16,983,371 $ 7,276,235 Business-Type Activities
Net Investment In Capital Assets $ 5,620,805 5,237,342 $ $ 5,232,877 $ 4,566,315 Restricted 298,317 576,831 523,783 1,544,038
Unrestricted 1,306,809 1,786,572 2,413,672 1,051,968
Total Business-Type Activities Net Position $ 7,225,931 7,600,745 $ $ 8,170,332 $ 7,162,321 Primary Government
Net Investment In Capital Assets $ 13,176,652 12,588,611 $ $ 12,890,752 $ 12,651,509 Restricted 6,450,516 7,891,356 7,922,681 5,673,000
Unrestricted 2,309,278 3,299,066 4,340,270 (3,885,953)
Total Primary Government Net Position $ 21,936,446 23,779,033 $ $ 25,153,703 $ 14,438,556 Note: The City implemented GASB Statement No. 68 in FY 2015, which required the City to record their net pension liability in the statement of net position.

Source: Basic Financial Statements- City of Sebastopol, California

CITY OF SEBASTOPOL

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
Fiscal Year
122 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2016 2017 2018 2019 2020 2021
$ 8,017,313 $ 8,461,885 $ 9,242,243 $ 9,448,772 $ 9,494,832 $ 9,355,475 4,314,008 2,279,908 1,660,668 1,450,299 2,827,215 3,067,342 (3,524,869) (847,289) (3,254,719) (2,485,538) (3,011,697) (4,241,598) $ 8,806,452 $ 9,894,504 $ 7,648,192 $ 8,413,533 $ 9,310,350 $ 8,181,219 $ 4,799,099 $ 4,705,054 $ 5,956,258 $ 5,966,945 $ 5,594,545 $ 5,199,403 1,404,798 1,468,204 - - - -
1,691,465 2,900,417 3,430,964 3,563,944 3,204,183 2,840,979 $ 7,895,362 $ 9,073,675 $ 9,387,222 $ 9,530,889 $ 8,798,728 $ 8,040,382 $ 12,816,412 $ 13,166,939 $ 15,198,501 $ 15,415,717 $ 15,089,377 $ 14,554,878 5,718,806 3,748,112 1,660,668 1,450,299 2,827,215 3,067,342 (1,833,404) 2,053,128 176,245 1,078,406 192,486 (1,400,619) $ 16,701,814 $ 18,968,179 $ 17,035,414 $ 17,944,422 $ 18,109,078 $ 16,221,601 Fiscal Year
123 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2012 2013 2014 2015
Expenses
Governmental Activities
General government $ 620,298 $ 907,290 $ 1,327,123 $ 1,451,524 Public safety 4,076,568 4,002,741 4,154,787 4,397,921
Community development 640,286 89,926 141,771 34,936
Education SERAF - - - -
Public works 1,059,870 962,578 1,207,688 1,331,944
Parks and recreation 485,332 684,115 771,708 644,813
Interest on long-term debt 201,026 113,226 103,767 91,304 Total Governmental Activities Expenses 7,083,380 6,759,876 7,706,844 7,952,442 Business-Type Activities
Water 1,166,923 1,320,990 1,298,601 1,368,427
Wastewater 2,195,805 2,335,916 2,605,752 2,795,925
Total Business-Type Activities Expenses 3,362,728 3,656,906 3,904,353 4,164,352 Total Primary Government Net Expenses $ 10,446,108 $ 10,416,782 $ 11,611,197 $ 12,116,794 Program Revenues
Governmental Activities
Charges for services
General government $ 430,935 $ 476,923 $ 435,632 $ 342,911 Public safety 327,309 274,025 248,479 278,638
Community development 313,521 41,325 19,942 14,390
Public works 220,180 107,687 193,334 182,878
Parks and recreation 36,958 114,637 130,691 89,971
Operating Contributions and Grants 598,351 813,943 553,751 579,188 Capital Contributions and Grants 1,623,332 7,331 288,575 742,670 Total Governmental Activities Program Revenues 3,550,586 1,835,871 1,870,404 2,230,646 Business-Type Activities
Charges for services
Water 1,128,182 1,427,249 1,709,463 1,933,720
Wastewater 2,099,751 2,374,980 2,688,194 2,959,002
Capital Contributions and Grants 259,789 260,514 107,307 30,356 Total Business-Type Activities Program Revenues 3,487,722 4,062,743 4,504,964 4,923,078 Total Primary Government Program Revenues $ 7,038,308 $ 5,898,614 $ 6,375,368 $ 7,153,724 Source: Basic Financial Statements- City of Sebastopol, California Fiscal Year

CITY OF SEBASTOPOL

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
124 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2016 2017 2018 2019 2020 2021
$ 2,055,024 1,761,437 $ 2,278,030 $ 2,000,974 $ 2,609,862 $ 2,657,999 $ 4,193,457 5,260,822 5,397,701 5,813,782 6,263,272 6,760,025 9,155 0 - - - -
- - - - - -
1,376,165 938,036 1,301,865 1,220,155 1,448,514 1,633,132 1,066,267 749,005 801,006 976,489 1,159,950 965,252
83,446 80,566 72,765 72,530 70,118 37,858
8,489,927 9,083,453 9,851,367 10,083,930 11,551,716 12,054,266 1,669,223 1,716,237 1,893,951 1,933,059 2,393,602 2,490,214 2,887,638 2,889,787 3,090,686 3,333,798 3,562,838 3,519,884 4,556,861 4,606,024 4,984,637 5,266,857 5,956,440 6,010,098 $ 13,046,788 $ 13,689,477 $ 14,836,004 $ 15,350,787 $ 17,508,156 $ 18,064,364 $ 915,735 $ 180,139 $ 208,574 $ 188,613 $ 214,999 $ 205,711 240,886 190,018 171,292 179,531 152,232 134,888
162,652 - - - - -
305,614 539,617 324,193 345,425 421,397 520,283
100,630 66,739 44,247 26,588 50,605 75,314
484,480 209,472 348,082 239,765 1,856,224 799,896
446,248 525,005 473,052 380,700 477,809 741,050
2,656,245 1,710,990 1,569,440 1,360,622 3,173,266 2,477,142 2,061,253 2,457,698 2,270,224 2,229,367 2,295,614 2,613,289 3,116,767 3,324,934 3,028,330 3,104,920 2,895,155 3,024,497 142,905 - - - - -
5,320,925 5,782,632 5,298,554 5,334,287 5,190,769 5,637,786 $ 7,977,170 $ 7,493,622 $ 6,867,994 $ 6,694,909 $ 8,364,035 $ 8,114,928 Fiscal Year
125 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2012 2013 2014
Net (Expense)/Revenue
Governmental Activities $ (3,532,794) $ (4,924,005) $ (5,836,440) Business-Type Activities 124,994 405,837 600,611
Total Primary Government Net Expense (3,407,800) (4,518,168) (5,235,829) General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property taxes 1,292,711 1,602,494 1,392,443
Sales and use taxes 1,392,916 1,673,360 1,713,697
Motor vehicle in lieu taxes 565,094 566,513 591,353
Transient lodging taxes 300,937 329,577 359,892
Other taxes 1,358,326 1,924,257 2,273,971
Incremental property taxes 922,557 0 -
Investment Earnings- - -
Unrestricted interest and rents 81,145 (5,330) 22,017
Miscellaneous 20,555 269,884 257,126
Transfers 31,024 31,023 31,024
Special item: Dissolution of redevelopment agency - (4,909,339) - Special item: Contribution of long-term loans to Sonoma County - - - Extraordinary item: Theft of investment funds - - -
Total Governmental Activities 1,055,926 6,391,778 6,641,523 Business-Type Activities
Investment Earnings- - -
Transfers (31,024) (31,023) (31,024)
Extraordinary item: Theft of investment funds - - -
Total Business-Type Activities (31,024) (31,023) (31,024) Total Primary Government 1,024,902 6,360,755 6,610,499
Change in Net Position
Governmental Activities (2,476,868) 1,467,773 805,083
Business-Type Activities 93,970 374,814 569,587
Total Primary Government $ (2,382,898) $ 1,842,587 $ 1,374,670 Source: Basic Financial Statements- City of Sebastopol, California Fiscal Year

CITY OF SEBASTOPOL

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
126 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2015 2016 2017 2018 2019 2020 2021
$ (5,721,796) $ (5,833,682) $ (7,372,463) $ (8,281,927) $ (8,723,308) $ (8,378,450) $ (9,577,124) 758,726 764,064 1,176,608 313,917 67,430 (765,671) (372,312) (4,963,070) (5,069,618) (6,195,855) (7,968,010) (8,655,878) (9,144,121) (9,949,436) 1,393,021 2,459,296 2,478,979 2,618,913 2,891,222 2,981,745 3,004,264 1,748,368 2,069,199 3,923,850 3,714,794 3,958,244 3,697,726 4,362,811 621,440 - - - - - -
482,164 483,738 514,225 529,810 631,742 518,175 402,255 2,761,809 2,246,817 1,134,089 1,097,589 1,153,243 1,100,380 1,158,279 - - - - - - -
- 67,458 - 57,812 259,216 343,753 (7,279)
10,492 73,826 0 - - - -
327,178 0 260,341 523,614 563,958 602,464 315,678
31,024 31,023 31,023 32,259 31,024 31,024 31,024
- - - - - - -
(3,602,937) - - - - - -
- - - - - (819,039) -
3,772,559 7,363,899 8,409,965 8,574,791 9,488,649 9,275,267 8,447,993 - 32,728 - 31,889 107,261 91,655 25,951
(31,024) (31,023) (31,023) (32,259) (31,024) (31,024) (31,024) - - - - - (380,961) -
(31,024) (31,023) 1,705 (370) 76,237 60,631 (386,034)
3,741,535 7,332,876 8,411,670 8,574,421 9,564,886 9,335,898 8,061,959 (1,949,237) 1,530,217 1,037,502 292,864 765,341 896,817 (1,129,131) 727,702 733,041 1,178,313 313,547 143,667 (705,040) (758,346) $ (1,221,535) $ 2,263,258 $ 2,215,815 $ 606,411 $ 909,008 $ 191,777 $ (1,887,477) Fiscal Year
127 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2012 2013 2014
General Fund
Nonspendable $ - $ - $ -
Restricted - - -
Committed 1,195,000 - 458,000
Assigned - - -
Unassigned 789,029 697,762 1,113,028
Total General Fund $ 789,029 $ 1,892,762 $ 1,571,028
All Other Governmental Funds
Nonspendable $ - $ - $ -
Restricted 2,547,599 3,025,676 3,169,424
Committed 213,100 364,291 471,226
Unassigned - - -
Total All Other Governmental Funds 2,760,699 3,389,967 3,640,650 Total Governmental Funds $3,549,728 $5,282,729 $5,211,678 Source: Basic Financial Statements- City of Sebastopol, California

CITY OF SEBASTOPOL

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
Fiscal Year
128 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2015 2016 2017 2018 2019 2020 2021
$ - $ 11,127 - $ $ 46,392 $ 28,818 $ 76,529 $ 42,386
- - - - 1,186,330 - 1,161,558
1,015,000 1,015,000 185,000 185,000 - - -
- 2,785,000 - 3,335,000 3,579,535 4,610,435 5,049,534
2,077,523 3,265,624 3,669,067 3,882,742 4,993,434 4,269,513 3,028,639 $ 3,092,523 $ 4,280,624 $ 6,650,194 $ 7,449,134 $ 8,601,787 $ 10,142,807 $ 9,282,117 $ - $ - $ - $ - $ - $ 2,651 $ -
3,573,382 3,827,777 2,279,908 1,660,668 1,450,299 1,640,885 1,905,784 595,718 464,800 154,351 279,229 436,477 475,327 491,317 - (79,673) - (48,819) (113,745) (10,535) (6,926)
4,169,100 4,292,577 2,354,586 1,891,078 1,773,031 2,108,328 2,390,175 $7,261,623 $8,573,201 $9,004,780 $9,340,212 $10,374,818 $12,251,135 $11,672,292 Fiscal Year
129 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2012 2013 2014 2015
Revenues
Property taxes $ 2,215,268 $ 1,602,494 $ 1,392,443 $ 1,393,024 Sales and use taxes 1,977,528 2,812,420 3,214,480 3,652,138 Other taxes 966,989 1,010,312 1,070,444 1,218,306
Transient occupany taxes - - - -
Franchise fees - - - -
Licenses and permits 321,351 364,654 290,026 314,693
Fines and forfeits 174,613 124,941 117,358 158,380
Intergovernmental 2,990,419 1,337,164 1,412,805 1,443,193 Interest and rents 92,583 12,529 76,670 43,433
Charges for services 648,309 676,416 922,178 843,764
Miscellaneous 690,618 79,048 54,189 67,948
Total Revenues 10,077,678 8,019,978 8,550,593 9,134,879 Expenditures
Current
General Government 763,950 876,686 1,308,096 1,501,999
Public Safety 3,746,490 3,727,294 3,950,740 4,175,290
Community development 893,424 88,735 140,258 35,436
Parks and recreation 277,746 374,110 679,488 544,596
Public works 761,911 809,017 1,124,226 1,073,855
Education SERAF - - - -
Capital Outlay 1,610,157 228,939 240,332 80,472
Intergovernmental 329,888 - - -
Debt Service:

Principal 1,299,299 349,214 357,250 358,175
Interest 211,532 114,692 105,278 93,135
Cost of debt issuance - - - -
Total Expenditures 9,875,201 6,587,883 7,905,668 7,862,958 Excess of Revenues Over (Under) Expenditures 202,477 1,432,095 644,925 1,271,921 Other Financing Sources (Uses)
Capital lease financing - - - -
Sale of property 269,883 - - -
Proceeds from debt - - - -
Payment to escrow - - - -
Sales of capital assets - - - -
Transfers In 565,248 265,144 256,529 256,301
Transfers Out (534,224) (234,121) (225,505) (225,277)
Total Other Financing Sources (Uses) 31,024 300,906 31,024 31,024 Extraordinary/Special Items (3,514,884) - - -
Net Change In Fund Balances ($3,281,383) $1,733,001 $675,949 $1,302,945 Debt Service as a percentage
of non-capital expenditures 19.0% 7.3% 6.0% 5.8%
Source: Basic Financial Statements- City of Sebastopol, California Fiscal Year

CITY OF SEBASTOPOL

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
130 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2016 2017 2018 2019 2020 2021
$ 2,681,062 2,459,296 $ 2,618,914 $ 2,891,222 $ 2,981,746 $ 3,004,264 $ 4,454,450 3,940,169 4,686,751 4,907,892 4,609,379 5,321,931 - - - - - -
514,225 483,738 529,810 631,742 518,175 402,255
359,466 351,568 323,496 358,299 336,738 363,167
412,678 488,234 304,268 324,928 458,640 507,434
88,747 122,235 82,605 55,501 48,171 30,439
676,542 979,119 765,572 540,760 2,213,385 1,401,853
112,795 92,985 106,357 309,812 390,766 38,129
428,703 717,270 320,219 318,062 293,920 361,904
294,146 434,506 523,223 563,549 602,471 315,177
10,022,814 10,069,120 10,261,215 10,901,767 12,453,391 11,746,553 2,272,637 1,628,362 1,879,155 1,933,038 2,216,083 2,308,287 4,429,352 4,329,264 4,780,975 4,998,720 5,448,918 6,292,688 - 9,600 - - - -
524,035 605,061 639,930 826,945 970,013 792,038
1,443,331 930,256 868,491 1,051,102 1,062,194 1,161,841 - - - - - -
554,243 1,188,516 1,471,598 766,230 590,256 680,072
- - - - - -
302,357 233,469 245,128 249,619 250,516 275,351
82,796 80,566 72,766 72,531 70,118 37,858
- - - - 12,842 -
8,873,988 9,739,857 9,958,043 9,898,185 10,608,098 11,560,977 1,195,132 282,957 303,172 1,003,582 1,845,293 185,576
85,423 66,250 - - - -
- - - - - -
- - - - 420,626 -
- - - - (397,030) -
- 799 - - - -
417,645 198,741 1,396,214 2,912,182 632,536 632,536
(386,622) (167,718) (1,363,955) (2,881,158) (601,512) (601,512) 116,446 98,072 32,259 31,024 31,024 54,620
- - - - (819,039) -
$1,311,578 $381,029 $335,431 $1,034,606 $1,876,317 ($578,843)

4.6% 3.6% 3.7% 3.5% 3.2% 3.0%
Fiscal Year
131 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Total Taxable
Fiscal Secured Unsecured SBE Assessed Total Direct
Year Nonunitary Value1 Tax Rate
2012 925,157,423 $ 40,782,023 $ 20,260 $ 965,919,186 $ 1.1325% 2013 936,099,537 32,978,628 20,260 969,057,905 1.1247%
2014 984,165,141 33,736,420 - 1,017,901,561 1.1247%
2015 1,030,201,370 33,857,950 - 1,064,059,320 1.1157%
2016 1,101,325,085 34,718,413 - 1,136,043,498 1.1152%
2017 1,159,102,311 36,169,711 - 1,195,272,022 1.1247%
2018 1,213,563,175 40,451,873 - 1,254,015,048 1.1322%
2019 1,293,160,893 41,422,754 - 1,334,583,647 1.1322%
2020 1,346,424,183 39,548,176 - 1,385,972,359 1.1570%
2021 1,396,730,880 40,985,208 - 1,437,716,088 1.1560%
1 Article XIIIA, added to the California Constitution by Proposition 13 in 1978, fixed the base for valuation of property subject to taxes at the full cash value as it appeared on the Assessor's 1975-76 assessment roll.

Thereafter, full cash value can be increased to reflect:
a) annual inflation up to 2 percent
b) current market value at time of ownership change;
c) market value for new construction
Note: Estimated actual value of taxable property cannot easily be determined as the property in the City is not reassessed annually. Reassessment normally occurs when ownership changes.

Source: Sonoma County Assessor 2007/08 - 2017/18 Combined Tax Rolls

CITY OF SEBASTOPOL

ASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
132 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

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133 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Agency 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Basic Levy 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Palm Drive Health Care District 0.00550 0.00550 0.00550 0.00520 0.00520 0.00520 0.00520 0.00520 0.00300 0.00300 Sebastopol Elementary Bonds 0.03950 0.03810 0.03810 0.03700 0.03500 0.03300 0.03550 0.03450 0.03350 0.03600 Sonoma County Junior College 0.02100 0.02100 0.02100 0.01800 0.01600 0.01500 0.01400 0.03600 0.01300 0.01300 Sonoma County Junior College 2014 0.00000 0.00000 0.00000 0.00000 0.00000 0.02500 0.02300 0.00000 0.02400 0.02400 Twin Hills Elementary 0.04400 0.03700 0.03700 0.03300 0.03300 0.03200 0.03050 0.03000 0.03000 0.02900 West Sonoma County Unified High 0.01550 0.01610 0.01610 0.01550 0.01900 0.01750 0.01700 0.04850 0.04650 0.04400 West Sonoma Russian River Project 0.00700 0.00700 0.00700 0.00700 0.00700 0.00700 0.00700 0.00700 0.00700 0.00700 Total Direct & Overlapping Tax Rates2 1.13250 1.12470 1.12470 1.11570 1.11520 1.13470 1.13220 1.16120 1.15700 1.15600 Voter Approved City Debt Rate
Redevelopment Rate 4 1.01250
Note:

Source: Sonoma County Assessor 2007/08 - 2016/17 Tax Rate Table ¹ In 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.
³ City'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. ERAF general fund tax shifts may not be included in tax ratio figures.

Fiscal Year

CITY OF SEBASTOPOL

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
² Overlapping 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.
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. 134 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Percent Of Percent Of
Total Total
Taxable Assessed Taxable Assessed
Taxpayer Assessed Value Valuation Assessed Value1 Valuation Barlow Star LLC 30,098,089 $ 2.09% N/A N/A
H-1 Real Estate LLC Et Al 14,790,000 1.03% N/A N/A
Longs Drug Stores California LLC 13,040,610 0.91% 0.29% 2,814,397 970 Gravenstein Hwy LLC 7,587,637 0.53% N/A N/A
Duckhorn Wine Company 7,265,970 0.51% N/A N/A
Redwood Marketplace 7,226,476 0.50% 6,168,746 0.65%
Pendergast Charles R Tr 5,892,784 0.41% 4,784,708 0.50% Maxwell Myers Co & Maxwell A Myers LL 5,736,889 0.40% N/A N/A LOK Sebastopol Hotel Co LLC 5,705,585 0.40% 5,128,937 0.54% Diajeff LLC 5,025,092 0.35% 4,289,551 0.45%
Total Top 10 Taxpayers 102,369,132 7.13% $ 23,186,339 2.43% Total Taxable Value $ 1,437,716,088 100.00% 955,403,046 $ 100.00% Source: Sonoma County Assessor data, Avenu Insights & Analytics Fiscal Year 2012

CITY OF SEBASTOPOL

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO
Fiscal Year 2021
135 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Fiscal RDA/Successor Percent of
Year City Agency Total1 Amount Levy
2017 $ 2,523,397 $ 825,365 $ 3,348,762 $ 3,348,762 100.00% 2018 2,433,418 827,985 3,261,403 3,261,403 100.00%
2019 2,714,491 743,087 3,457,578 3,457,578 100.00%
2020 2,781,985 656,366 3,438,351 3,438,351 100.00%
2021 2,909,941 319,262 3,229,203 3,229,203 100.00%
1 Schedule excludes unitary tax.
2 * The schedule is intended to show information for ten years, additional years will be displayed as it becomes available.

Source: Sonoma County Tax Collector/Treasurer
The City of Sebastopol participates in the County of Sonoma "Teeter Plan" for property tax distributions. This plan distributes 100% of the secured taxes to participants; and in turn, allows the County to keep related penalties and interest for late tax payments.

CITY OF SEBASTOPOL

PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS*
Taxes Levied for the Fiscal Year
Collections within the
Fiscal Year of the Levy
136 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City of Sebastopol - Bradley Burns
Category 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Eating and Drinking Places 325$ 425$ 397$ 364$ 321$ 307$ 290$ 261$ 248$ 226$ Food Stores 344 400 460 411 405 391 350 292 232 229
Apparel Stores 79 80 82 83 81 80 77 76 76 70
Auto Dealers and Supplies 90 88 88 89 86 81 80 78 78 70 Service Stations 188 207 203 168 169 196 224 229 247 191 Other Retail Stores 344 367 346 308 298 279 279 317 311 302 All Other Outlets 205 208 190 181 193 187 168 150 166 173 Total $ 1,775$ 1,766$ 1,604$ 1,553$ 1,521$ 1,468$ 1,403$ 1,358$ 1,261$ 1,575 City of Sebastopol - Measure Y
Category 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Other Retail Stores 139$ 133$ 130$ 119$ 112$ 108$ 99$ 106$ 104$ 96 $ Food Stores 97 92 102 116 114 109 101 86 77 75
Auto Dealers and Supplies 84 103 101 110 103 101 101 112 86 83 Eating and Drinking Places 83 103 99 92 82 79 74 66 64 56 Service Stations 48 51 53 43 43 50 57 61 65 49
Apparel Stores 10 12 12 13 12 12 10 8 6 6
All Other Outlets 175 164 161 154 150 142 138 135 129 132 Total 636$ 658$ 658$ 647$ 616$ 601$ 580$ 574$ 531$ 497$ City of Sebastopol - Measure T
Category 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Other Retail Stores 279$ 267$ 261$ 239$ 225$ 217$ 197$ 51$ -$ -$ Food Stores 194 184 205 233 228 219 201 39 - -
Auto Dealers and Supplies 168 206 203 220 206 203 202 52 - - Eating and Drinking Places 167 205 198 185 164 159 145 34 - - Service Stations 95 101 107 86 86 99 114 30 - -
Apparel Stores 21 24 23 26 24 24 21 4 - -
All Other Outlets 351 329 325 308 303 285 278 67 - -
Total $ 1,316$ 1,322$ 1,297$ 1,236$ 1,206$ 1,158$ 1,275 $ 277 -$ -$ City of Sebastopol - Total
Category 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Eating and Drinking Places 575$ 733$ 694$ 641$ 567$ 545$ 509$ 361$ 312$ 282$ Food Stores 635 676 767 760 747 719 652 417 309 304
Apparel Stores 110 116 117 122 117 116 108 88 82 76
Auto Dealers and Supplies 342 397 392 419 395 385 383 242 164 153 Service Stations 331 359 363 297 298 345 395 320 312 240 Other Retail Stores 762 767 737 666 635 604 575 474 415 398 All Other Outlets 731 701 676 643 646 614 584 352 295 305 Total $ 3,749$ 3,746$ 3,548$ 3,405$ 3,328$ 3,206$ 2,254$ 1,889$ 1,758$ 3,486 Calendar Year
Calendar Year
Calendar Year

CITY OF SEBASTOPOL

TAXABLE SALES BY CATEGORY

LAST TEN CALENDAR YEARS (IN THOUSANDS OF DOLLARS)
Calendar Year
137 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Special Capital 2007 Tax Residential
Fiscal Assessment Lease CEC Allocation Development
Year Bonds Obligation Loan Refunding Bond Loan Total2
2012 $ 255,000 $ 3,367,736 $ 62,193 $ - $ 3,684,929 - $ 2013 240,000 3,057,583 38,131 - 3,335,714 -
2014 225,000 3,001,169 12,974 - 3,239,143 -
2015 205,000 2,415,429 - - 2,620,429 -
2016 185,000 2,273,334 - - 2,458,334
2017 160,000 2,075,657 - - 2,235,657 -
2018 140,000 1,850,529 - - 1,990,529 -
2019 115,000 1,625,911 - - 1,740,911 -
2020 90,000 1,400,395 - - 1,490,395 -
2021 65,000 1,173,640 - - 1,238,640 -
Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. 1 See Demographic and Economic Indicators schedule for personal income and population data. 2 Totals do not include other post-employment benefits payable or compensated absences. n/a: not available
Source: Basic Financial Statements - City of Sebastopol, California

LAST TEN FISCAL YEARS

CITY OF SEBASTOPOL

RATIOS OF OUTSTANDING DEBT BY TYPE
Governmental Activities
138 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Capital Refunding State Total Percentage
Installment Lease Loan Payable Drinking CEC Primary of Personal Per Agreement Obligation Truist Water Loan Loan Total2 Government Income1 Capita1 $ 1,448,181 - $ - $ - $ 29,651 $ 1,477,832 $ 5,162,761 $ 2.17% 697 1,349,964 - - - 17,689 1,367,653 4,703,367 1.80% 632
1,244,969 - - - 6,193 1,251,162 4,490,305 1.82% 604
1,150,336 1,200,000 - 142,819 - 2,493,155 5,113,584 1.97% 686 1,130,420 1,160,118 - 170,415 - 2,460,953 3,761,788 1.42% 500 1,147,458 1,118,601 - 249,339 - 2,515,398 3,912,195 1.38% 516 990,710 1,075,382 - 148,328 - 2,214,420 3,353,458 1.10% 435 859,552 1,030,391 - 98,863 - 1,988,806 2,947,221 0.97% 382 737,003 983,555 - 75,481 - 1,796,039 2,608,523 0.84% 337 627,380 - 1,019,462 - - 1,646,842 3,293,684 1.00% 430
Business-Type Activities
139 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Percentage of
Percentage Total Taxable
Fiscal of Personal Assessed Per
Year Total Income1 Value2 Capita1
2012 $ 0.00% - 0.00% -
2013 0.00% - 0.00% -
2014 0.00% - 0.00% -
2015 0.00% - 0.00% -
2016 0.00% - 0.00% -
2017 0.00% - 0.00% -
2018 0.00% - 0.00% -
2019 0.00% - 0.00% -
2020 N/A - N/A -
2021 N/A - N/A -
1 See Demographic and Economic Indicators schedule for personal income and population data. 2 See Assessed Value and Actual Value of Taxable Property schedule for property value data.

Source: Basic Financial Statements - City of Sebastopol, California Debt Outstanding
General Bonded

CITY OF SEBASTOPOL

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
140 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

City's
Share of
Total Debt Percent Debt as of
June 30, 2021 Applicable1 June 30, 2021
OVERLAPPING TAX AND ASSESSMENT DEBT:

Sonoma County Joint Community College District $ 356,205,000 1.449% 5,161,410 $ West Sonoma County Union High School District 60,747,897 13.498% 8,199,751 Sebastopol Union School District 16,751,585 58.912% 9,868,694 Twin Hills Union Shool District 3,544,964 0.779% 27,615 Palm Drive Healthcare District 2,733,086 12.728% 347,867 Palm Drive Healthcare District Parcel Tax Obligations 11,679,588 12.728% 1,486,578 City of Sebastopol 1915 Act Bonds 100.000% 65,000 65,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT N/A N/A 25,156,916 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Sonoma County Certificates of Participation $ 11,252,000 1.460% 164,279 $ Sonoma County Pension Obligation Bonds 286,690,000 1.460% 4,185,674 Sonoma County Office of Education Certificates of Participation 3,513,603 1.460% 51,299 West Sonoma County Union High School District General Fund Obligations 13.498% 119,398 884,558 Sebastopol Union School District Certificates of Participation 58.912% 88,913 150,925 Twin Hills Union School District Certificates of Participation 127,936 0.779% 997 City of Sebastopol Capital Lease Obligations 1,173,640 100.000% 1,173,640 TOTAL DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT N/A N/A 5,784,199 $ COMBINED TOTAL DEBT $ 30,941,115
TOTAL DIRECT DEBT $ 1,173,640
TOTAL OVERLAPPING DEBT 29,767,475
COMBINED TOTAL DEBT $ 30,941,115 2
1 The information needed to complete the direct and overlapping debt schedule was currently unavailable, this information will be provided going forward.
2 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations RATIOS TO 2020-21 ASSESSED VALUATION:

Total Overlapping Tax and Assessment Debt 1.74%
Combined Direct Debt 0.08%
Combined Total Debt 2.14%

CITY OF SEBASTOPOL

DIRECT AND OVERLAPPING DEBT GOVERNMENTAL ACTIVITIES DEBT AS OF JUNE 30, 2021
141 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2012 2013 2014 2015
Total assessed value of all real
and personal property $ 965,959,706 $ 969,098,425 $ 1,017,901,561 $ 1,064,059,320 Debt limit percentage 3.75% 3.75% 3.75% 3.75%
Total debt limit 36,223,489 36,341,191 38,171,309 39,902,225 Amount applicable to debt limit 3,684,929 3,335,714 3,239,143 2,620,429 Legal debt margin $ 32,538,560 $ 33,005,477 $ 34,932,166 $ 37,281,796 Total net debt applicable to the limit as a
percentage of debt limit 10.17% 9.18% 8.49% 6.57%
Note: California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted when assessed valuations were based on 25% of full market value. This has since changed to 100% of full market value. Thus the limit shown is 3.75% (1/4 of 15%).

Source: Basic Financial Statements - City of Sebastopol, California Fiscal year

CITY OF SEBASTOPOL

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
142 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2016 2017 2018 2019 2020 2021
$ 1,136,043,498 $ 1,195,272,022 $ 1,254,015,048 $ 1,293,160,893 $ 1,346,424,183 $ 1,396,730,880

3.75% 3.75% 3.75% 3.75% 3.75% 3.75%
42,601,631 44,822,701 47,025,564 48,493,533 50,490,907 52,377,408 2,458,334 - 1,990,529 1,740,911 1,490,395 1,238,640
$ 40,143,297 $ 44,822,701 $ 45,035,035 $ 45,035,035 $ 49,000,512 $ 51,138,768

5.77% 0.00% 4.23% 3.59% 2.95% 2.36%
Fiscal year
143 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Property
Fiscal Tax
Year Increment Principal Interest Coverage
2012 922,557 $ 939,495 $ 101,273 $ 0.89
2013 - - - -
2014 - - - -
2015 - - - -
2016 - - - -
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
Fiscal Special
Year Assessments Principal Interest Coverage
2012 31,479 $ 20,000 $ 22,468 $ 0.74
2013 30,602 15,000 21,302 0.84
2014 32,121 15,000 19,924 0.92
2015 31,082 20,000 17,004 0.84
2016 32,420 20,000 15,312 0.92
2017 31,194 25,000 11,455 0.86
2018 32,344 20,000 10,005 1.08
2019 33,315 25,000 9,686 0.96
2020 31,712 25,000 6,868 1.00
2021 32,512 25,000 8,371 0.97
Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.

Note: As of June 30, 2013, pledged revenue for tax allocation bonds was zero, due to transfer of liabilities to Successor Agency.

Source: Basic Financial Statements - City of Sebastopol, California Special Assessment Bonds

CITY OF SEBASTOPOL

PLEDGED REVENUE COVERAGE

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
Tax Allocation Revenue Bonds
144 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Adjusted Net
Fiscal Operating Operating Available
Year Revenue Expenses Revenue Principal Interest Coverage 2012 n/a n/a n/a n/a n/a n/a
2013 n/a n/a n/a n/a n/a n/a
2014 n/a n/a n/a n/a n/a n/a
2015 1,933,720 (1,194,003) 739,717 - - n/a
2016 2,061,253 (1,493,267) 567,986 39,881 49,201 6.38
2017 2,467,685 (1,538,204) 929,481 41,517 47,565 10.43
2018 2,284,764 (1,763,844) 520,920 101,011 45,217 3.56
2019 2,280,988 (1,737,823) 543,165 93,902 48,047 3.83
2020 2,343,362 (2,159,899) 183,463 97,338 45,177 1.29
2021 2,613,289 (2,245,148) 368,141 74,943 117,541 1.91
Note: There were no pledges of non-general obligation debt from 2008 to 2014.

Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Operating expenses do not include interest, depreciation or amortization.

Source: Basic Financial Statements - City of Sebastopol, California Refunding Loan Payable - Truist, and Refunding Lease Agreement

CITY OF SEBASTOPOL

PLEDGED REVENUE COVERAGE

PROPRIETARY FUNDS

LAST TEN FISCAL YEARS
Installment Sale Agreement, State Drinking Water Loan,
145 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

CITY OF SEBASTOPOL

DEMOGRAPHIC STATISTICS

LAST TEN CALENDAR YEARS
% of Pop 25+ % of Pop 25+
Calendar Total Per with High with Bachelors Unemployment Median Year Population (in thousands) Capita School Degree Degree Rate Age 2012 7,445 260,940 35,049 93.50% 38.90% 4.2% 48.70
2013 7,440 247,209 33,227 92.50% 35.50% 3.3% 48.90
2014 7,454 259,973 34,877 94.90% 39.20% 4.8% 48.70
2015 7,527 264,433 35,131 94.70% 42.90% 3.8% 49.70
2016 7,579 283,772 37,441 93.80% 41.20% 3.4% 51.30
2017 7,709 305,392 39,615 96.10% 48.30% 3.4% 51.30
2018 7,885 303,177 38,449 96.10% 48.30% 4.1% 47.90
2019 7,826 314,018 40,125 93.10% 38.60% 2.4% 47.20
2020 7,745 328,140 42,368 95.70% 43.80% 20.70% 47.60
2021 7,657 330,501 43,163 95.50% 44.90% 11.9% 46.80
Source:

Population: California State Department of Finance. Unemployment Data: California Employment Development Department.
2000-2009 Income, Age, and Education Data: ESRI - Demographic Estimates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries 2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey n/a: not available
Personal Income
146 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

Percent of Percent of
Total Total
Employer Employees Employment Rank Employees Employment Rank Sonoma Specialty Hospital 220 5.24% 1 N/A N/A N/A
O'Reilly Media 189 4.50% 2 186 12.00% N/A
Apple Valley Post acute Rehab 187 4.45% 3 120 8.00% N/A TLC Child and Family Services 109 2.60% 4 130 8.00% N/A Traditional Medicinals 108 2.57% 5 140 9.00% N/A
Safeway 102 2.43% 6 95 6.00% N/A
Gravenstein Union District 88 2.10% 7 N/A N/A N/A
Analy High School 87 2.07% 8 90 6.00% N/A
Whole Foods Market 87 2.07% 9 N/A N/A N/A
Greenacres Homes & Food 80 1.90% 10 N/A N/A N/A
1,257 29.93%
Source: Sonoma County Economic Development Board

CITY OF SEBASTOPOL

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
Fiscal Year 2021 Fiscal Year 2012
147 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2017 2018 2019 2020 2021
Governmental Activities
General Government
City Council 6.00 6.00 6.00 5.00 6.00
City Manager 0.75 0.75 0.75 0.75 0.75
City Attorney 0.25 0.25 0.25 0.25 0.25
Finance 4.00 4.00 4.00 4.00 4.00
Building Inspection 1.50 1.50 1.50 0.50 1.50
Planning 3.00 3.00 3.00 3.00 3.00
Public Safety
Police 34.75 34.75 34.75 24.75 25.75
Fire 33.50 33.50 35.50 34.50 35.50
Public Works and facilities
Administration 2.75 2.75 2.75 2.75 2.75
Water 1.00 1.00 1.00 1.00 1.00
Laborer 4.00 4.00 4.00 3.00 3.00
Engineering 1.75 1.75 1.75 1.75 1.75
Maintenance 4.00 6.00 6.00 7.00 7.00
Total Full-Time Equivalent Employees 98.25 100.25 102.25 89.25 93.25 * The schedule is intended to show information for ten years, additional years will be displayed as it becomes available.

Source: City of Sebastopol Finance Department

CITY OF SEBASTOPOL

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES

BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS*
Fiscal Year
148 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2013 2014 2015 2016 2017 2018 2019 2020 2021
Building
Residential Building Permits n/a n/a 302 432 393 278 300 290 323 Land use entitlement applications n/a n/a 54 32 25 25 25 25 25 Police
Citations issued n/a n/a n/a n/a 872 1,156 906 2,121 1,122 Arrests made n/a n/a 823 623 669 581 519 468 329
Requests for services n/a n/a 7,801 7,830 7,703 7,845 8,276 8,251 6,894 Fire
Fire responses 861 1,055 1,071 1,056 1,150 1,190 1,275 1,200 1,189 Fire Inspections 200 200 200 300 350 375 400 380 375
Area served (sq. miles) 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 Public Works
Encroachment permits 83 93 117 98 59 65 74 86 95
Capital improvement projects n/a n/a n/a n/a n/a 6336
Park acres overseen 96.00 96.00 96.00 97.70 97.70 97.70 97.70 97.70 Street maintenance - crack seal (streets) n/a n/a n/a n/a n/a n/a n/a n/a n/a Street maintenance - traffic marking paint
(gal.) n/a n/a n/a n/a n/a 271 325 120 135
Street light repairs n/a n/a n/a n/a n/a n/a n/a n/a n/a Water/Waste Water
Active Residential Accounts n/a n/a 2,550 2,470 2,682 2,503 2,451 2,686 2,560 Active Commerical Accounts n/a n/a 477 335 473 381 455 343 335 Average Daily Water Consumption n/a n/a 758,904 783,561 838,673 821,096 782,192 817,534 872,883 Ground Storage Capacity (gallons) n/a n/a $7.5m $7.5m $7.5m $7.5m $7.5m 7.5m 7.5m Elevated Storage Capactiy (gallons) n/a n/a
0- no
elevated
tanks
0 - no
elevated
tanks
0 - no
elevated
tanks
0 - no
elevated
tanks
0 - no
elevated
tanks
0 - no
elevated
tanks
0 - no
elevated
tanks
Ground Water Production Capactiy (gallons
per day) n/a n/a 3,225,600 3,225,600 3,225,000 3,225,600 3,312,000 3,312,000 3,312,000 Pump Capacity (gallons per minute) n/a n/a 2,240 2,240 2,240 2,240 2,300 2,300 2,300 Waste Water Treatment Capacity (gallons
per day) n/a n/a 840,000 840,000 840,000 840,000 840,000 840,000 840,000 * The schedule is intended to show information for ten years, additional years will be displayed as it becomes available.

Source: City of Sebastopol Finance Department
Fiscal Year

CITY OF SEBASTOPOL

OPERATING INDICATORS

BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS*
149 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022

2013 2014 2015 2016 2017 2018 2019 2020 2021
Police
Stations 1111 11111
Fire
Stations 1111 11111
Public Works
Streets (centerline miles) n/a n/a n/a n/a n/a n/a n/a n/a n/a Street lights n/a n/a n/a n/a n/a n/a n/a n/a n/a
Traffic signals 2222222 22
Parks and Recreation
Office buildings 4444444 44
Park acreage 96 96 96 96 97.7 97.7 97.7 97.7 97.7
Playing fields/courts n/a n/a n/a n/a n/a n/a n/a n/a n/a Swimming pools 1111 11111
Water play features n/a n/a n/a n/a n/a n/a n/a n/a n/a Water
Water mains (miles) 37 37 37 37 37 37 37 37 37
Fire hydrants n/a n/a n/a 450 450 450 450 450 450
Storage capacity (million gallons) 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.5 7.5 Treatment capacity (million gallons)
Wastewater
Sewer mains (miles) 29 29 29 29 29 29 29 29 29
Treatment capacity (million gallons) n/a n/a n/a n/a n/a n/a n/a n/a n/a * The schedule is intended to show information for ten years, additional years will be displayed as it becomes available.

Source: City of Sebastopol Finance Department
Fiscal Year

CITY OF SEBASTOPOL

CAPITAL ASSET STATISTICS

BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS*
150 Agenda Item Number 8
City Council Meeting Packet of February 1, 2022