2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Building
Residential Building Permits n/a n/a 302 432 393 278 300 290 323 330 Land use entitlement applications n/a n/a 54 32 25 25 25 25 25 30 Police
Citations issued n/a n/a n/a n/a 872 1,156 906 2,121 1,122 1,224 Arrests made n/a n/a 823 623 669 581 519 468 329 299
Requests for services n/a n/a 7,801 7,830 7,703 7,845 8,276 8,251 6,894 7,743 Fire
Fire responses 861 1,055 1,071 1,056 1,150 1,190 1,275 1,200 1,189 1,250 Fire Inspections 200 200 200 300 350 375 400 380 375 390 Area served (sq. miles) 1.20 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 60
Capital improvement projects n/a n/a n/a n/a n/a 63361
Park acres overseen 96.00 96.00 96.00 97.70 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 n/a Street maintenance - traffic marking
paint (gal.) n/a n/a n/a n/a n/a 271 325 120 135 275
Street light repairs n/a 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 2,506 Active Commerical Accounts n/a n/a 477 335 473 381 455 343 335 364 Average Daily Water Consumption n/a n/a 758,904 783,561 838,673 821,096 782,192 817,534 872,883 732,960 Ground Storage Capacity (gallons) n/a n/a $7.5m $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
0 - no
elevated
tanks
Ground Water Production Capactiy
(1000 gallons per day) n/a n/a 3,226 3,226 3,226 3,226 3,312 3,312 3,312 3,312 Pump Capacity (gallons per minute) n/a n/a 2,240 2,240 2,240 2,240 2,300 2,300 2,300 2,300 Waste Water Treatment Capacity
(1000 gallons per day) n/a n/a 840 840 840 840 840 840 840 840 Source: City of Sebastopol Finance Department
Fiscal Year
CITY OF SEBASTOPOL
OPERATING INDICATORS
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
161 Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police
Stations 1111 111111
Fire
Stations 1111 111111
Public Works
Streets (centerline miles) n/a 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 n/a
Traffic signals 2222222 222
Parks and Recreation
Office buildings 4444444 444
Park acreage 96 96 96 96 97.7 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 n/a Swimming pools 1111 111111
Water play features n/a 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 37
Fire hydrants n/a n/a n/a 450 450 450 450 450 450 45
Storage capacity (million gallons) 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.5 7.5 7.5 Treatment capacity (million gallons)
Wastewater
Sewer mains (miles) 29 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 n/a Source: City of Sebastopol Finance Department
CITY OF SEBASTOPOL
CAPITAL ASSET STATISTICS
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
162 Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
City of Sebastopol
Presentation to The City Council
Presented by: Mitesh Desai, CPA Principal
Badawi & Associates
Audit of the
City of Sebastopol
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Agenda
Engagement Team
Deliverables and Scope of the Audit
Areas of Primary Emphasis
Auditors Report and Financial Statements
Required Communications
New Accounting Standards
Conclusion & Discussion/Questions
Agenda Item Number
2 6
City Council Meeting Packet of January 17, 2023
Engagement Team
Engagement
Partner
Mitesh Desai,
CPA
3 Quality Control
Reviewer
Staff
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Deliverables and Scope of the Audit
Report of Independent Auditors on City of Sebastopol Basic Financial Statements (BFS).
State Controller’s Annual Street Report.
State Controller’s Report of Financial Transactions.
Agreed-Upon Procedures Reports on Appropriation Limit Schedule.
Communications With Those Charged With Governance
Letter used to summarize communication of various
significant matters to those charged with governance.
Agenda Item Number
4 6
City Council Meeting Packet of January 17, 2023
Areas of Primary Audit Emphasis
The risk of management override of controls is addressed by the following procedures:
Assignment of audit staff based on consideration of audit risk.
Procedures to incorporate an element of unpredictability in the audit from period to period.
Consideration of the selection and application of significant accounting principles.
Examination of journal entries.
Review of accounting estimates for bias.
Evaluation of business rationale for unusual transactions.
Evaluation of the appropriateness of fraud-related inquiries performed Revenues & Receivables: Improper revenue recognitions
Governmental Funds: Confirm/validate property taxes, sales taxes, franchise taxes & other significant revenues/receivables.
Enterprise Funds: Analytical comparisons between current year and prior year revenues, receivables, and other ratios.
Pension and OPEB:
Reconciled amounts recorded to reports provided by CalPERS and the City’s Actuary.
Testedthe census data used by CalPERS and the City’s Actuary.
Obtained reports from CalPERS auditors regarding plan assets and census data.
Agenda Item Number
5 6
City Council Meeting Packet of January 17, 2023
Auditors Report
Audit performed in accordance with Generally Accepted
Auditing Standards and Government Auditing Standards
Unmodified opinion
Financial statements are fairly presented in all material respects Significant accounting policies have been consistently applied Estimates are reasonable
Disclosures are properly reflected in the financial statements Agenda Item Number
6 6
City Council Meeting Packet of January 17, 2023
Government-Wide Financial Statements
Cash & Inv Receivables (net) Other Assets Capital Assets Deferred outflows 2020 $16,360,622 $2,399,329 $113,705 $18,375,811 $3,162,450 2021 $14,920,161 $2,864,009 $44,563 $17,440,359 $3,225,837 2022 $17,887,137 $3,126,547 $830,161 $18,811,240 $3,374,076 $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Assets and Deferred Outflows of Resources
Agenda Item Number
7 6
City Council Meeting Packet of January 17, 2023
Government-Wide Financial Statements
Accounts
Payable Other Liabilities Net Pension
Liability
Other LongTerm Liabilities Deferred Inflows
2020 $413,515 $770,403 $13,028,541 $6,985,110 $1,105,270 2021 $514,092 $501,710 $13,864,877 $6,677,008 $715,638
2022 $1,009,888 $1,221,103 $8,665,009 $10,616,885 $7,662,907 $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
Liabilities and Deferred Inflows of Resources
Agenda Item Number
8 6
City Council Meeting Packet of January 17, 2023
Government-Wide Financial Statements
Net Investment in Capital
Assets Restricted Unrestricted
2020 $15,089,377 $2,827,215 $192,486
2021 $14,554,878 $3,067,342 $(1,400,619)
2022 $14,961,545 $3,599,203 $(3,707,379)
$(5,000,000)
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
Net Position
Agenda Item Number
9 6
City Council Meeting Packet of January 17, 2023
Government-Wide Financial Statements
$191,777
$(1,887,477) $(1,391,807)
$(2,000,000)
$(1,500,000)
$(1,000,000)
$(500,000)
$-
$500,000
2020 2021 2022
Changes in Net Position
Agenda Item Number
10 6
City Council Meeting Packet of January 17, 2023
Government-Wide Financial Statements
2020 2021 2022
Net Cost of Service $8,378,450 $9,577,124 $10,856,365
Tax Revenue $8,298,026 $8,927,609 $9,802,494
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Net Cost of Service to Tax Revenue
*Net Cost of Service relates only to Governmental Activities Agenda Item Number
11 6
City Council Meeting Packet of January 17, 2023
General Fund
Expenditure Coverage
12 2020 2021 2022
Unrestricted Fund Balance $ 8,879,948 $ 8,078,173 $ 8,148,928 Total Expenditures $ 9,599,043 $ 10,579,038 $ 11,085,582 Unrestricted Fund Balance as
a % of Total Expenditures 92.51% 76.36% 73.51%
Number of months 11 9 9
GFOA recommendation No less than 2 months
Measure of City's ability to operate with no revenues using available fund balance.
*Includes Measure T and Measure Y General Purpose Sales Tax fund balances and expenditures.
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Pension Plan
13 2018 2019 2020 2021 2022
Employer Contributions $1,187,535 $1,343,860 $1,530,553 $1,686,413 $1,827,570 $-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
City’s Annual Pension Contributions
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Pension Plan
14 Net Pension Liability
6.15% $15,309,869
7.15% $8,665,009
8.15% $3,189,168
$-
$2,500,000
$5,000,000
$7,500,000
$10,000,000
$12,500,000
$15,000,000
$17,500,000
City’s CalPERS Pension Plan Sensitivity to Discount Rate (2021 Measurement Date)
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Other Financial Information
15 Unfunded Liability
6/30/2019 $2,682,363
6/30/2020 $2,730,476
6/30/2021 $2,186,427
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
City’s OPEB Funded Status
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Other Financial Information
16 Total OPEB Liability
1.19% $2,497,320
2.19% $2,186,427
3.19% $1,933,291
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
City’s OPEB Plan Sensitivity to Discount Rate
(2021 Measurement Date)
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Other Financial Information
17 Total OPEB Liability
-1% $2,108,836
Current Rate $2,186,427
+1% $2,282,309
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
City’s OPEB Plan Sensitivity to Healthcare Cost Trend Rate (2021 Measurement Date)
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Required Communications
Our Responsibility Under
U.S GAAS
• Expression of an opinion on whether financial
statements are fairly stated in accordance with U.S
GAAP
• Evaluate internal control over financial reporting
• Evaluate compliance with laws, contract and grants
• Evaluate the tone at the top
• Ensure financial statements are clear and transparent • Communicate with the governing body
18 Independence • It is our responsibility to maintain independence • We will maintain our independence by strict
adherence to the AICPA and the Board of
Accountancy rule
• Other than compiling the financial statements, no
other services performed that could affect our
independence
• Audit was performed in the time frame
communicated to the City in our engagement letters
Timing of the Audit
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Required Communications
Management
Responsibility
• Management is responsible for the financial statements • Establish and maintain internal control over financial reporting
• Making all financial records available to us
• Adjust the financial statements to correct material
misstatements
• Establish internal control to prevent and detect fraud • Inform us of all known and suspected fraud
• Comply with laws and regulations
• Take corrective action on audit findings
19 Disagreement with
Management
Deficiencies in Internal
Control over Financial
Reporting
• We are pleased to report that there were no
disagreements with management
• No material weaknesses identified during our audit
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Required Communications
Sensitive Disclosures
Difficulties Encountered in
Performing the Audit
Representations Requested
of Management
Management Consultation
with Other Accountants
The most sensitive disclosures affecting the
City’s financial statements are as follow:
• Summary of Significant Accounting Policies
• Cash and Investments
• Capital Assets
• Long-term Debt
• Pension Plans
• Other Post Employment Health Care
Benefits
No difficulties were encountered during our
audits.
We obtained representation letter from the City.
We are not aware of any significant accounting
or auditing matters for which management
consulted with other accountants.
Agenda Item Number
22 6
City Council Meeting Packet of January 17, 2023
Required Communications
Significant Audit Adjustments
and Unadjusted Differences
Considered by Management to
be Immaterial
Potential Effect on the Financial
Statements of Any Significant
Risks and Exposures
There were adjustments and
reclassifying entries during the
course of the audit. Management
has posted all proposed audit
adjustments.
No significant risks or exposures
were identified. Legal matters and
potential liabilities are disclosed in
the financial statements
Agenda Item Number
23 6
City Council Meeting Packet of January 17, 2023
Required Communications
Other Material Written
Communications
Material Uncertainties Related
to Events and Conditions
Fraud and Illegal Acts
Other than the engagement letters and
management representation letters,
there have been no other significant
communications
There were no material uncertainties
relating to events and conditions
We have not become aware of any
instances of fraud or illegal acts.
Agenda Item Number
26 6
City Council Meeting Packet of January 17, 2023
Required Communications
Significant Accounting Policies and
Unusual Transactions
Management Judgment and
Accounting Estimates
The City adopted the following new
accounting pronouncements:
• GASB 87 - Leases
• GASB 89 – Interest Cost During
Construction
• GASB 92 – Omnibus
• GASB 99 - Omnibus
Significant management estimates
impacting the financial statements include
the following:
• Investment Valuation
• Allowance for uncollectable accounts
• Useful lives of Capital Assets
• Pension Plans
• OPEB Obligation
Agenda Item Number
21 6
City Council Meeting Packet of January 17, 2023
New Accounting Standards
• Statement 91 - Conduit debt
• Statement 93 - LIBOR removal and lease modifications
• Statement 94 - Public-private partnerships
• Statement 96 - Subscription-Based Information Technology Arrangements 2024
27 2023
• Statement 101 – Compensated Absences
• Statement 100 – Accounting Changes and Error Corrections 2025
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023
Questions
Mitesh M. Desai
[email protected]
28 Thank You
For Allowing Us to Provide Audit Services to the City
of Sebastopol
Agenda Item Number 6
City Council Meeting Packet of January 17, 2023