Sebastopol City Council
February 4, 2025

CITY OF SEBASTOPOL CITY COUNCIL
AGENDA ITEM REPORT FOR MEETING OF: February 4, 2025
=========================================================================================== To: Honorable Mayor and City Councilmembers
From: Ana Kwong – Administrative Services Director
Subject: Receive and File of the City’s annual audit for year ended June 30, 2024 =========================================================================================== RECOMMENDATIONS:

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, 2024.

EXECUTIVE SUMMARY:

The audit was conducted by Badawi & Associates, a certified public accountant firm, and resulted in an unmodified (clean) opinion on the City's financial statements and compliance. The audit report consists of the Annual Comprehensive Financial Report (ACFR), which provides summary financial information for the City and its operations, as well as supplementary information and statistical data. The ACFR follows the generally accepted accounting principles(GAAP) and the reporting standards of the Governmental Accounting Standards Board (GASB), and is submitted to the Government Finance Officers Association (GFOA) for recognition.

BACKGROUND AND DISCUSSION:

The purpose and scope of the report: The report is a summary of the City of Sebastopol's financial statements for the fiscal year 2023-24, audited by an independent firm and submitted to a national association for recognition.

The main findings and recommendations of the audit: The audit found that the City's financial statements are free of material misstatements and comply with the generally accepted accounting principles and standards. The audit also issued an unmodified (clean) opinion.

The structure and content of the report: The report consists of three sections: introductory, financial, and statistical.

The introductory section provides a letter of transmittal and an overview of the City's financial status and results.

The financial section contains the independent auditor's report, the management's discussion and analysis, the basic financial statements, and the notes to the financial statements. The statistical section provides historical and comparative data on the City's financial trends, revenue capacity, debt capacity, demographic and economic information, and operating information.

The difference between government-wide and fund statements: The report presents two types of financial statements: government-wide and fund statements. The government-wide statementsreport financial information based on when expenses occur and revenue are earned, similar to a private business. The fund statements report financial information based on when cash transactions occur, similar to a budgetary basis. The report reconciles the differences between the two types of statements.

STAFF ANALYSIS:

The ACFR is a detailed document with a lot of information. To make it easier to understand, this summary explains some of the accounting and finance terms used in the report. While the audit includes extensive financial information, the auditor’s purpose is not to offer opinions on the financial condition of the City, that will be presented in forthcoming reports focused on the City’s budget .

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The ACFR is not a direct translation of a private sector financial statements. One key difference is the scope and purpose of the reports. Private sector financial statements focus on profitability and return on investment for shareholders, while the ACFR emphasizes accountability and transparency in the use of public funds. The ACFR includes additional sections such as the Management's Discussion and Analysis (MD&A), statistical data, and notes to the financial statements, providing a broader context for understanding the City's financial activities. Moreover, the ACFR adheresto Governmental Accounting Standards Board (GASB) standards, requiring additional information beyond the basic financial statements, including budgetary reporting, funding and liability data on pensions and other post-employment benefits (OPEB), and infrastructure condition assessments. In summary, while both the ACFR and private sector financial statements aim to present a clear picture of financial health, their objectives, scope, and reporting standards differ significantly.

Brief Summary of Terms
Annual Comprehensive Financial Report (ACFR): is a set of comprehensive financial statements on the financial state of the City as of the fiscal year end.

Audit: an annual examination performed by an independent accountant firm of the City’s internal controls and finances.

Enterprise Funds: a part of government that accounts for the goods and services provided to the public for a fee and is self-supporting, similar to a private business. Example includes Water and Sewer operations.

Fiscal Year (FY): a twelve month period July 1 through June 30 to which the annual budget applies, and financial transactions are recorded and subsequently audited.

Fund: a grouping of accounts used to record all the special purpose financial transactions for which the fund was created.

Fund Balance: the difference between assets and liabilities – in essence, what would be left over if the assets were used to pay the liabilities.

Fund Statements: detailed information on the primary governments funds whereby fund assets are exepected to be used within a year and current year liabilities are typically expected to be repaid or satisfied with current resources.

General Accepted Accounting Principles (GAAP): uniform minimum stardards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles.

Government Finance Officers Association (GFOA): a professional association of state, provincial, and local finance officers in the United States and Canada.

Government-wide Statements: report financial information based on when expenses occur and revenue are earned rather than when cash transactions occur, similar to that of a private business.

Net position: the calculation of all the City’s assets minusthe current and future liabilities and net pension deferrals.

Restricted Fund Balance: this represents funding that can only be spent for very specific purposes, generallly due to laws.

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 areas that 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’s financial position.

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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. The City prepares two types of financial statements that measure its finances differently; Government-wide (starting page 21-26) and Fund Statements (starting page 27-34). The Government-wide statements are designed to provide readers with broader overview of full City operations in a similar manner to those of a private business. These statements are designed to offer both long-term and short-term information about the government's financial position and performance. They help readers assess the financial health and operational outcomes of the entire government entity, encompassing all its activities; whereas Fund Statements provide detailed financials in a short term annual budgetary basis on specific funds.
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 Statement of Net Position and Governmental Fund Financial Statements measure different activity. The net change in fund balance of the governmental funds are reconciled to statement of net position on page 33. The Management’s Discussion and Analysis and notes to financial statements explain the differences between fund balance and net position. In short governmental fund statements differ from government-wide net position and includes additional items, like pension liabilities.

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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.

COMMUNITY OUTREACH:

This item has been 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 impact for accepting this report.

OPTIONS:

Not Applicable

ATTACHMENTS:

Audited Annual Comprehensive Financial Report (ACFR) as of June 30, 2024 – City of Sebastopol Power Point Document
APPROVALS:

Department Head Approval: Approval Date:_1/21/25______
CEQA Determination (Planning): Approval Date:_1/21/25______ The proposed action is not a project under the California Environmental Quality Act (CEQA) Administrative Services (Financial) Approval Date:_1/21/25______ Costs authorized in City Approved Budget: ☐ Yes ☐ No  N/A Account Code (f applicable) ___________________________ City Attorney Approval: Approval Date: __N/A____________ City Manager Approval: Approval Date: _1/23/25_____________ Agenda Item Number 5
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CITY OF SEBASTOPOL
FISCAL YEAR 2023 - 2024

ANNUAL COMPREHENSIVE FINANCIAL REPORT
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City of
Sebastopol
Sebastopol, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Prepared by:

Administrative Services Department
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City of Sebastopol
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents
Page
INTRODUCTORY SECTION:

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

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

Government-Wide Financial Statements:

Statement of Net Position ..........................................................................................................................23 Statement of Activities ...............................................................................................................................24 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................................................................31 Statement of Revenues, Expenditures and Changes in Fund Balances........................................32 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ..................................................................................................................33 Proprietary Funds Financial Statements:

Statement of Net Position....................................................................................................................36 Statement of Revenues, Expenses and Changes in Net Position...................................................37 Statement of Cash Flows .....................................................................................................................38 Notes to Basic Financial Statements ................................................................................................................39 Required Supplementary Information (Unaudited):

Budgets and Budgetary Accounting:

Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: General Fund .....................................................................................................78 i
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City of Sebastopol
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents
Page
FINANCIAL SECTION, Continued:

Required Supplementary Information (Unaudited), Continued:

Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Transportation Grants Special Revenue Fund..............................................81 Defined Benefit Pension Plan:

Schedule of Proportionate Share of the Net Pension Liability ............................................................82 Schedule of Contributions ........................................................................................................................84 Other Postemployment Benefits Plan:

Schedule of Changes in the Total OPEB Liability and Related Ratios ................................................86 Supplementary Information:

General Capital Project Fund Budgetary Comparison Schedule.........................................................91 Combining Balance Sheet ..........................................................................................................................94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances........................100 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Police Grant Special Revenue Fund.................................................................................................105 Gas Tax Special Revenue Fund ........................................................................................................106 Park in Lieu Special Revenue Fund.................................................................................................107 Traffic Impact Special Revenue Fund..............................................................................................108 Street Lighting Assessment Special Revenue Fund.......................................................................109 Asset Forfeiture Special Revenue Fund ..........................................................................................110 Downtown Association Special Revenue Fund.............................................................................111 Art in Lieu Special Revenue Fund ...................................................................................................112 Measure M Special Revenue Fund...................................................................................................113 Housing General Plan Special Revenue Fund................................................................................114 Street Reserve Special Revenue Fund..............................................................................................115 Vehicle Abatement Special Revenue Fund.....................................................................................116 Inclusionary and Linkage Housing Special Revenue Fund .........................................................117 Building Permit Incremental Special Revenue Fund ....................................................................118 Community Development Block Grant Special Revenue Fund ..................................................119 SB1 Road and Maintenance Special Revenue Fund ......................................................................120 General Government Facilities Fees Special Revenue Fund........................................................121 Fire Facilities Fees Special Revenue Fund.......................................................................................122 Stormwater Facilities Fees Special Revenue Fund.........................................................................123 Supplemental Planning Grant (SB2 and LEAP) Special Revenue Fund.....................................124 Undergrounding Capital Project Fund ...........................................................................................125 Clean Renewable Energy Debt Service Fund.................................................................................126 ii
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City of Sebastopol
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents
Page
STATISTICAL SECTION (Unaudited):

Financial Trends:

Net Position by Component.................................................................................................................................128 Changes in Net Position........................................................................................................................................130 Fund Balances of Governmental Funds..............................................................................................................134 Changes in Fund Balances of Governmental Funds .........................................................................................136 Revenue Capacity Information:

Assessed Value and Estimated Actual Value of Taxable Property.................................................................138 Direct and Overlapping Property Tax Rates......................................................................................................140 Principal Property Taxpayers...............................................................................................................................141 Property Tax Levies and Collections...................................................................................................................142 Taxable Sales by Category ....................................................................................................................................143 Debt Capacity Information:

Ratios of Outstanding Debt by Type...................................................................................................................144 Ratios of General Bonded Debt Outstanding.....................................................................................................146 Direct and Overlapping Governmental Activities Debt...................................................................................147 Legal Debt Margin Information...........................................................................................................................148 Pledged-Revenue Coverage .................................................................................................................................150 Demographic and Economic Information:

Demographic and Economic Statistics................................................................................................................152 Principal Employers for City of Sebastopol .......................................................................................................153 Operating Information:

Full-Time Equivalent City Government Employees by Function...................................................................154 Operating Indicators by Function........................................................................................................................155 Capital Asset Statistics by Function ....................................................................................................................156 iii Agenda Item Number 5
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January 28, 2025
Honorable Mayor, Members of the Council and Citizens of the City of Sebastopol:

City staff is pleased to present the Annual Comprehensive Financial Report (ACFR) for the City of Sebastopol (City) for the fiscal year ended June 30, 2024. This report was prepared by the Administrative Services (Finance) Department, which is responsible for both the accuracy of the data presented, and the completeness of the presentation.

The goal of the independent audit is to provide reasonable assurance that the City’s financial statements for the fiscal year ended June 30, 2024 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the 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, a firm of certified public accountants, has audited the City’s financial statements. They concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified (“clean”) opinion that the City’s financial statements for the fiscal year ended June 30, 2024 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component 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.

The ACFR presents management's representations regarding the City's finances in a format required by the Government Accounting Standards Board (GASB). We recognize that while the ACFR meets these requirements, it is challenging for most people to readily understand the City’s fiscal condition from this report due to its highly technical nature. Management takes full responsibility for ensuring that all information in this report is complete and reliable. To support these representations, the City's management has established an internal control system aimed at protecting the government's assets from loss, theft, or misuse, and at gathering reliable information for preparing the City's financial statements in accordance with GAAP. Given that the cost of internal controls should not exceed their benefits, the City's internal control system is designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. As management, we affirm that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Profile of the City of Sebastopol
The City of Sebastopol has a population of approximately 7,348 residents; and is located in Sonoma County, California. Sebastopol was incorporated in 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, recommending an annual budget, appointing department heads, hiring employees, and managing daily operations of the City.

Sebastopol is a full-service city that provides a wide variety of municipal services to its residents and visitors, including municipal utilities (Water and Wastewater); fire and police protection; construction and Docusign Envelope ID: A828E19C-B422-4479-B736-A2852923FF18 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: A Community That Values Its People
Sebastopol is a community that truly values its people. It embraces inclusion, diversity, and sustainable environmental practices, while prioritizing the well-being and success of its residents and businesses.

Visitors, whether from the San Francisco Bay Area or from around the globe, are drawn to Sebastopol for its natural beauty, fine dining, welcoming accommodations, and a variety of recreational and educational activities.

The City is renowned for its leadership in environmental sustainability, with a strong focus on conserving natural resources like energy and water. Sebastopol hosts numerous local events that celebrate the arts, supported by a vibrant Community Center that offers accessible space for local artisans, actors, and communicators. The city also features a "makers' space.” Sebastopol aims to create an environment where citizens and visitors can learn and grow together in a nurturing and supportive atmosphere.

Budget Process
Each year, the City Council approves a budget that outlines the policies and fiscal actions to be taken by the City. This annual budget serves as the cornerstone of Sebastopol’s financial planning and expenditure control system. The Budget Committee reviews the proposed operating and capital budgets and making recommendations to the City Council for final enactment. This structured budget process is designed to achieve the fiscal and policy goals for the upcoming fiscal year.

The process includes collaboration among the departments and City Manager. It also includes discussions and feedback from the Budget Committee, and considers requests from Councilmembers. Public hearings, typically starting in June, are held by the Council to review and gather input on the proposed budget before its formal adoption. The budget is adopted by fund, department, and account classification.

Active public involvement is essential to balancing the goals of continuous service improvement and fiscal sustainability. This report includes budget-to-actual comparisons for each governmental fund with an appropriated annual budget, ensuring transparency and accountability in the City's financial management.

Local Economy
The City is situated in the scenic Sonoma County, about sixty miles north of San Francisco, Sebastopol boasts a unique mix of specialty shops, including the charming Main Street and the Barlow retail area, which features restaurants and entertainment venues. This charming city attracts numerous visitors each year, contributing to its revenue through sales taxes and transient occupancy taxes. Visitors are drawn to Sebastopol for its appealing recreational opportunities, excellent food and wine, and specialty retail shops offering locally made products. The warm welcomes and friendly service ensure that they keep coming back.

The City support local employees by promoting new housing that fits the City’s character. This includes the Canopy project, with construction anticipated to begin in 2025. These initiatives aim to provide modern, affordable housing options, thereby supporting the local economy and enhancing community well-being.

Through these initiatives, the City is dedicated to fostering a more inclusive and resilient community where everyone has the opportunity to thrive, live, and shop locally, ultimately boosting sales tax revenue.

The City is cautiously optimistic about the potential development of two new hotels. Currently, with only one hotel in a region where tourism is a major industry, we are likely missing out on significant opportunities.

Hotels contribute greatly to the local economy by supporting businesses and generating tax revenue from Transient Occupancy Taxes (TOT) and property taxes. However, while we remain hopeful, we are cautious about relying on this revenue until the hotels are much closer to opening. The hotel market can be unpredictable, and the associated revenues are too uncertain to depend on at this stage.

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Future Challenges:

Over the past five years, recurring expenses have consistently exceeded recurring revenues. The City has relied on one-time revenues, such as funding from Assemblymember Levine for flooding, federal funding, and various grants, to support ongoing programs and services. Additionally, substantial amounts from the General Fund balance have been used. The FY 24-25 budget also depends on temporary revenues, particularly building fees from a peak in construction activity. This reliance on non-recurring revenues and a diminishing fund balance is unsustainable.

The City faces financial pressures on both revenue and expense fronts. Sales taxes, the largest funding source, have remained stagnant despite a growing economy. Changes in the allocation of administrative costs among utility funds and the General Fund have also added pressure In response, in November, 2024 voters approved a ½ cent increase in the local sales tax (Measure U), which if fully implemented would generate $1.5 million annually. Due to a competing measure and a potential state cap on sales tax levels, as of this writing we are confident that the City will retain a ¼ cent increase for the twelve year duration of the tax, while the other ¼ cent is uncertain and will be addressed at that state level.

On the expense side, the City is experiencing rising costs in employee healthcare and pensions. Pension reform has provided some relief, but inflation and higher utility costs continue to impact the budget.

Additionally, there is a significant need for investment in City assets, with an estimated annual requirement of $900,000 to prevent deterioration. For example, $850,000 is needed annually to improve street conditions, based on recent estimates. The FY 24-25 budget includes $300,000 for asset preservation, reflecting the recommendation for the first year of these investments.

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, 2023. 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 seven consecutive years (fiscal years ended 2017 through 2023). 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.

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. We want to express our appreciation to everyone who assisted and contributed to the preparation of this report.

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

Stephen Zollman, Mayor
Jill McLewis, Vice Mayor
Phill Carter
Neysa Hinton
Sandra Maurer
City Staff:

City Manager ……………….…………………………………… Don Schwartz
City Attorney …………………………………………………….. Contract (Alex Mog) Assistant City Manager | City Clerk ......................................... Mary Gourley Administrative Services Director .................……………………. Ana Kwong Building Official ............…………………………………………… Contract (Steve Brown) Community Development Director ..........................………….. Emi Theriault Director of Public Works/City Engineer………………………….. Mark Rincon-Ibarra Fire Chief ...............................................……………………....... Contract (Dave Bray) Police Chief ..........................................………………………… Ronald Nelson (Interim) Advisory Commissions or Committees:

Planning Commission
Design Review Board
Public Arts Committee
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Citizens of
Sebastopol
City Organization
(as of the date of the Financial Statements)
City Wide Organization Chart by Function
Council
Meeting
Municipal Code
Public Record
City Council
Don Schwartz
City Manager
City Attorney
Contract
Mary Gourley
Assistant City Mgr
City Clerk
Election
Information
Building Official
Steve Brown
(Contract)
Emi Theriault
Community
Development Director
Ana Kwong
Administrative
Services Director
Dave Bray
Fire Chief
(Contract)
Ronald Nelson
Police Chief
(Interim)
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
Stipend 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
Public
Art
Climate
Action
Mark Rincon-Ibarra
Director of Public
Works/City Engineer
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Sebastopol
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
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 Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Sebastopol (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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To the Honorable Mayor and Members of the City Council
Of the City of Sebastopol
Sebastopol, California

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, pension information, and OPEB information on pages 5–18 and 77– 87 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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To the Honorable Mayor and Members of the City Council
Of the City of Sebastopol
Sebastopol, California

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying general capital projects fund budgetary comparison schedule, combining and individual nonmajor fund financial statements, and budgetary comparison information, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, general capital projects fund budgetary comparison schedule, combining and individual nonmajor fund financial statements, and budgetary comparison information, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 28, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
January 28, 2025
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(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, 2023 and ended June 30, 2024 (FY23-24). 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 $19,846,000 (net position) at June 30, 2024: Governmental activities’ net position was $15,492,000; and business-type activities’ net position was $4,354,000.
• Total government-wide net position is categorized as follows:
o $19,312,000 is the net investment in capital assets;
o $2,592,000 is restricted for specific purposes (restricted net position); and, o (2,059,000) 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 increased by and decreased by $2.332,000 and ($1,860,000) respectively; accounting for a government-wide increase in net position of $472,000.
• At June 30, 2024, the city’s governmental funds reported a combined ending fund balance of $13,199,000. Governmental funds’ balances increased by $785,000 for the year reported. • The general fund reports fund balance of $11,666,000 at June 30, 2024; and it is distributed in these categories:
1) $1,305,000 is categorized as non-spendable, and is comprised of prepaid items. 2) $2,861,000 is reported as restricted; with $1,000,000 restricted for flood recovery; and $1,861,000 restricted for pension.
3) $2,704,000 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, $861,000;
 Equipment, vehicle and technology replacement, $643,000; and,  Pension and other post-employment liabilities rate stabilization, $1,200,000. 4) $4,796,000 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 $4,354,000 at June 30, 2024; with $3,472,000 reported in the water fund; and $882,000 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.
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(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’s statements tell how general government services 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. 6 Agenda Item Number 5
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
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.

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 long-term 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.

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. 7 Agenda Item Number 5
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
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.

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 does not report fiduciary funds for the year ended June 30, 2024.
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(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
2024 2023 2024 2023 2024 2023
Current and other assets $ 15,377,000 $ 16,511,000 $ 2,026,000 $ 4,098,000 $ 17,403,000 $ 20,609,000 Capital assets 14,855,000 12,032,000 9,122,000 9,207,000 23,977,000 21,239,000 Total assets 30,232,000 28,543,000 11,148,000 13,305,000 41,380,000 41,848,000 Deferred outflows of Resources
Deferred Outflows Pension and OPEB 5,303,000 5,500,000 1,123,000 1,155,000 6,426,000 6,655,000 Total deferred outflows of resources 5,303,000 5,500,000 1,123,000 1,155,000 6,426,000 6,655,000 Current Liabilities 2,375,000 3,000,000 750,000 784,000 3,125,000 3,784,000 Long-term Liabilities 16,570,000 16,099,000 6,999,000 7,245,000 23,569,000 23,344,000 Total liabilities 18,945,000 19,099,000 7,749,000 8,029,000 26,694,000 27,128,000 Deferred inflows of Resources
Deferred inflows - Pension and OPEB 1,099,000 1,784,000 168,000 217,000 1,267,000 2,001,000 Total deferred inflows of resources 1,099,000 1,784,000 168,000 217,000 1,267,000 2,001,000 Net Position
Invested in capital assets 13,491,000 10,408,000 5,821,000 5,367,000 19,312,000 15,775,000 Restricted 2,592,000 2,696,000 - - 2,592,000 2,696,000
Unrestricted (592,000) 56,000 (1,467,000) 847,000 (2,059,000) 903,000 Total net position $ 15,491,000 $ 13,160,000 $ 4,354,000 $ 6,214,000 $ 19,845,000 $ 19,374,000 Table A-1
City of Sebastopol’s Net Position
(rounded , nearest thousand dollars)
Governmental Activities Business-Type Activities Total
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
Total net position, (assets and deferred outflows, less liabilities and deferred inflows), was $19,845,000 at June 30, 2024. Governmental activities net position was $15,491,000; and business-type activities’ net position was $4,354,000.

The largest component of the City’s net position is invested in capital assets; and is reported at $19,312,000. This component represents 97% of total net position as of June 30, 2024. 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.

An additional portion of the City’s net position represents resources that are subject to external restrictions on how they may be used, with $2,592,000 reported as restricted at June 30, 2024. 10 Agenda Item Number 5
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
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, 2024 and June 30, 2023. 2024 2023 2024 2023 2024 2023
Revenues
Program revenues:

Charges for services $ 856,000 $ 1,178,000 $ 5,304,000 $ 5,359,000 $ 6,160,000 $ 6,537,000 Grants and contributions 752,000 2,527,000 752,000 2,527,000 Capital grants and contributions 2,265,000 575,000 2,265,000 575,000 General revenues:

Property taxes 3,608,000 3,469,000 3,608,000 3,469,000
Sales Tax 4,521,000 4,609,000 4,521,000 4,609,000
Transient Occupancy Taxes 519,000 544,000 519,000 544,000 Other Taxes 1,468,000 1,320,000 1,468,000 1,320,000
Other income 602,000 870,000 98,000 115,000 700,000 985,000 Total revenues 14,591,000 15,092,000 5,402,000 5,474,000 19,993,000 20,566,000 Expenses
General government 3,216,000 2,702,000 3,216,000 2,702,000 Public safety 6,374,000 5,109,000 6,374,000 5,109,000
Parks and recreation 1,164,000 1,011,000 1,164,000 1,011,000 Public works 1,543,000 929,000 1,543,000 929,000
Interest 33,000 30,000 33,000 30,000
Water 2,923,000 2,506,000 2,923,000 2,506,000
Wastewater 4,269,000 3,765,000 4,269,000 3,765,000
Total expenses 12,330,000 9,781,000 7,192,000 6,271,000 19,522,000 16,052,000 Increase in net position before
transfers and special item 2,261,000 5,318,000 (1,790,000) (797,000) 471,000 4,521,000 Transfers 70,000 31,000 (70,000) (31,000) - -
Increase (decrease) in net position 2,331,000 5,349,000 (1,860,000) (828,000) 471,000 4,521,000 Change in Net Position 2,331,000 5,349,000 (1,860,000) (828,000) 471,000 4,521,000 Net position beginning 13,160,000 7,811,000 6,214,000 7,042,000 19,374,000 14,853,000 Net position, ending $ 15,491,000 $ 13,160,000 $ 4,354,000 $ 6,214,000 $ 19,845,000 $ 19,374,000 Governmental Activities Business Type Activities Total
Table A-2
Changes in City of Sebastopol’s Net Position
(rounded to nearest thousand dollars)
Governmental Activities:

The government-wide net position saw an overall increase of $471,000. This change was driven by a significant rise of $2,331,000 in governmental activities, which was partially offset by a decrease of $1,860,000 in businesstype activities. The primary factors contributing to the increased net position were higher spending on public safety and public works, along with an increase in capital grant reimbursements. On the other hand, the net position decrease in business-type activities was mainly due to relatively flat rate revenue and higher expenses for wastewater treatment charged by a regional system operator, as well as increased personnel service costs. 11 Agenda Item Number 5
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
Governmental Activities Revenue:

Governmental activities’ services were financed as follows:
• Tax revenues totaling $10,116,000 were collected from property owners, retail sales, utility use, and hotel occupancy; and
• Tax revenue is the primary funding source for governmental activities, with sales taxes comprising approximately 31% of governmental activities revenue and transient occupancy taxes making up 3%.

These sources are considered more sensitive to short-term economic changes than property taxes, which account for 25% of total revenue, franchise fees and utility taxes, which make up 9% of total revenue; and • Those who directly benefited from the programs paid charges for services amounting to $856,000; and • Grants and contributions, charges for services, and other income account for the remaining 34% of governmental activities' revenue; and
• Other governments and organizations subsidized certain programs with operating grants of $752,000 and capital grants of $2,265,000; and
• Interest earnings, miscellaneous revenues, and transfers from other funds totaled $791,000, as reflected in the following chart:

A graphical representation of the relative weights of governmental activities revenues follow Total FY 2023-24 governmental activities’ revenues of $14,591,000 are reported within two categories: Program revenues $3,873,000, (26%); and general revenues $10,718,000, (74%). Total governmental activities revenues decreased by $501,000, or 3%, over the prior year: General revenues, primarily taxes, decreased by $94,000; and program revenues decreased by $407,000.

Tax revenues: The tax revenue category experienced slight increase overall, with a 0.59% over prior year of $59,000.

Property taxes of $3,608,000 reflect an increase of $139,000, or 4.0%, compared to the prior year. The California constitution limits the baseline growth in assessed values used to calculate property taxes to 2%. However, assessed values can increase upon transfers of ownership and under specific conditions such as property tax reassessment catch-up, which typically cause the increase to range beyond constitution limits from 2% to 4%. 12 Agenda Item Number 5
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
Sales taxes of $4,521,000 reflect a decrease of $88,000, or 1.9%, compared to the prior year. This year-over-year change is attributed to lowered customer demand, primarily due to the Federal Reserve raising interest rates to curb inflationary pressures. These higher interest rates have, in turn, impacted consumer spending, leading to a reduction in sales tax revenue.

Transient Occupancy Taxes of $519,000 reflects a decrease of $25,000, or 4.6%, compared to the prior year. The reduction in TOT revenue which have impacted consumer spending and travel behavior goes hand in hand with the decrease in sales tax revenue, as both are influenced by the same economic factors.

Other taxes of $1,353,000 increased by $33,000, or 2.5%, over the prior year; and include user taxes on telecommunications bills and franchise fees. Revenue changes reflect normal growth in customer demand for services.

Program revenues overall of $3,873,000 decreased by $407,000, or 9.5%, compared to the prior year. This decrease is primarily due to the cessation of Federal economic recovery grant funds. Instead, the City received capital reimbursement for the Bodega Ave capital project, which resulted in a net reduction in program revenue.

Governmental Activities Expenses:

Table A-3 presents expenses for each of the City's functional areas, as well as the changes compared to the prior year:

Percentage
Change
2024 2023 2023-2024
General Government 3,216,000 2,702,000 19.02%
Public Safety 6,374,000 5,109,000 24.76%
Parks and recreation 1,164,000 1,011,000 15.13%
Public Works 1,543,000 929,000 66.09%
Interest on Long term Debt 33,000 30,000 10.00%
Total 12,330,000 9,781,000 26.06%
Expenses by Function
Table A-3
Cost of City Sebastopol’s Governmental Activities
(in rounded nearest one thousand dollars)
The changes in functional areas' shares of total expenses are primarily due to a significant increase in public works and public safety expenses, which are driven by higher salaries and wages due to routine merit increases, one time payout, and cost of living adjustments. Additionally, the general government experienced an increase primarily due to higher litigation expenses. Pension expense for a given fiscal year is based based upon changes in actuarial estimates of the net pension liability and related deferred inflows and outflows of economic resources that will be recognized in future periods. (See the financial statement note 11 for more information about the measurement and recognition of pension liabilities and expenses.) 13 Agenda Item Number 5
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
Business-Type Activities:

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

Net position of the water enterprise fund was $3,472,000 and the net position of the wastewater fund was $882,000, for a combined net position of $4,354,000 for all business-type activity at June 30, 2024. The enterprise funds report net position in two components – Investment in capital assets is reported at $3,500,000 and $2,322,000 for the water and wastewater funds, respectively.

For FY23-24 the net position of business-type activities decreased by ($1,860,000). The water fund's net position decreased by ($488,000); and the wastewater fund's net position decreased by ($1,372,000). The change in net position represents 29.9% of the combined funds’ beginning net position.

Revenue shortfalls and increase in expenses are the primary cause of the decreases in net position and are attributed to the delay in implementing water rate increases, as well as rising subregional costs and personnel services. The City is currently engaged in a utility rate study to address these issues and is in the process of wrapping up its water rate increase study.

Investment in capital assets is the largest category of the business-type activities’ net position, with $5,821,000 and 133.7% of total net position. Unrestricted net position, total net position less net position invested in capital assets is ($1,467,000) and (33.7%) 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 near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s shortterm 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, general capital projects 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, 2024, the City’s governmental funds reported total fund balances of $13,199,000 an decrease of $784,000 in comparison with the prior year. The total fund balance is reported within these categories:
• $1,305,000 is “non-spendable” because the financial resources have been used to prepay expenditure and advances to wastewater fund.
• $4,454,000 is “restricted,” and is only available to spend as specified by external funding sources. • $417,000 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. • $2,704,000 is “assigned” for a particular future use. • $4,319,000 is “unassigned,” and as such is considered available to finance future years’ budgetary needs at the discretion of the City Council.
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
The June 30, 2024 total governmental funds balance is comprised of the general fund’s fund balance $11,666,000, transportation grants special revenue fund’s fund balance of ($369,000), general capital project fund’s fund balance of ($51,000), and the non-major funds’ combined fund balances of $1,953,000.

General Fund:

The general fund is the chief operating fund of the City. During FY 23-24, the general fund balance decreased by $305,000; and is $11,666,000 as of June 30, 2024. Fund balance is distributed in the following categories:
• $1,305,000 is “non-spendable” because the financial resources have been used to prepay expenditure and advances to wastewater fund.
• $2,861,000 is restricted for uses specified by external funding sources or law. • $2,704,000 is “assigned” for these stated uses:
o $860,000 for buildings and infrastructure;
o $643,000 for equipment, technology and vehicle replacement; and, o $1,200,000 for pension and post-employment medical benefits. • $4,796,000 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 unassigned fund balance as a percentage of annual expenditures: Unassigned general fund balance of $4,796,000 at June 30, 2024 represents 42% of FY 23-24 general fund expenditures of $11,463,000.

The general fund's total fund balance decreased $305,000 during FY 2023-24. The change in attributed to energy efficiency capital project spending.

FY 23-24 general fund expenditures of $11,463,000 reflect an increase of $113,000, or 1%, over the prior year’s expenditures. The overall expenditure increase is modest, with significant variations in spending across different categories. Public safety expenditures have seen a substantial rise, while capital purchases have not experienced much growth. This uneven distribution of spending explains why the overall increase is small in percentage terms.

General Fund Budgetary Highlights
The FY 23-24 general fund’s original budget anticipated a decrease in fund balance of ($1,361,0001) and that budget was amended during the year to anticipate a decrease in fund balance of ($2,318,000).

The FY 23-24 general fund’s budgetary financing sources anticipated during the Council’s approval of the original budget and final remains unchanged. However, appropriations for expenditures approved in the original FY 23- 24 general fund budget were increased by $957,000 by Council amendment. The added appropriations funded an garbage franchise study.

Other financing sources (uses) reported in the general fund budgetary comparison schedule include the transfers in, and transfers out. The FY 23-24 budgeted amounts for these accounts were not amended.

The FY 23-24 general fund’s actual change in fund balance exceeded the final budget estimate $2,013,000.

Revenues exceeded final estimates by $972,000; expenditures were $1,388,000 less than the final budget’s appropriations; and other financial sources (uses) report an unfavorable variance of $347,000 attributed to transferring residual of prior year donation balance to a separate fund and closing out payment of energy project.

Favorable revenue is due to a combination of tax collections, investment earnings, and final reimbursement for energy project grant were the primary reasons the overall revenue variance was positive. Salary savings within the public safety function were a primary contributor to favorable expenditures variances. 15 Agenda Item Number 5
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
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.

Transportation Grants Special Revenue Fund:

The transportation grants special revenue fund reports June 30, 2024 fund balance of ($369,000). The negative balance is caused by current year expenditures that will be reimbursed form the following year's resources outside of the 60 day time period for revenue recognition.

General Capital Project Fund:

The general capital projects fund reports June 30, 2024 fund balance of ($45,000), a decrease of $6,000 for FY 23-24. The negative balance is caused by timing of reimbursement outside of the 60 day time period for revenue recognition.

Non-major Governmental Funds:

Non-major governmental funds, in the aggregate reported June 30, 2024 fund balances of $1,953,000. 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’ aggregated fund balances decreased by ($66,000) during FY 23-24. The decrease is attributed to the appropriate use of financial resources accumulated in prior years to fulfill the purposes for which those accumulated resources were intended.

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, 2024 is $4,354,000; with $5,821,000 representing the net investment in capital assets and ($1,467,000) reported as unrestricted net position.

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 was $1,000 at June 30, 2024, and was unchanged by FY 23-24 activities.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2024 the City had invested $25,077,000, (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 increase of $3,838,000 for FY 23-24. 16 Agenda Item Number 5
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
Governmental activities capital assets, net of accumulated depreciation increased by $2,822,000 during FY 23-24, due to additions in depreciable assets, $867,000; an increase in construction in progress, $2,876,000; and depreciation charges, ($921,000). The asset activity primarily consisted of routine vehicle and equipment replacement and construction in progress related to energy conservation assets, and normal depreciation.

Business-type activities capital assets, net of accumulated depreciation, increased by $1,016,000 during FY 23-24, due to additions in depreciable assets, $1,179,000; an increase in construction in progress, $541,000; less depreciation charges, ($704,000). The capital asset activity was related to normal replacement projects for the water and wastewater systems, and normal depreciation.

Table A-4 provides a recap of capital asset activity.

See the notes to the financial statements for detail on the changes of capital assets, (Note 6 – A). 2024 2023 2024 2023 2024 2023
Land and CIP 7.71 4.84 3.95 3.41 11.66 8.25
Buildings & structures 8.05 7.95 8.05 7.95
Machinery and equipment 2.88 2.83 0.24 0.24 3.12 3.07
Reservoirs 4.29 4.29 4.29 4.29
Pipelines & water system 4.83 4.24 4.83 4.24
Pipelines & wastewater system 8.97 8.37 8.97 8.37
Vehicles 3.13 2.75 1.02 1.02 4.15 3.77
Infrastructure 9.49 9.16 - 9.49 9.16
Accumulated depreciation (16.42) (15.50) (13.08) (12.37) (29.50) (27.87) Total 14.84 12.03 10.22 9.20 25.06 21.23
Governmental Activities Business-type Activities Total
Table A-4
City of Sebastopol’s Capital Assets
(in millions of dollars)
Changes in Long-term Liabilities – Debt:

For the year reported, general activities’ long-term debt obligations decreased by $1,187,000, and total $1,364,000 as of June 30, 2024. Significant transactions included $397,000 reductions in long-term obligations due to scheduled payments. Detailed information for long-term debt obligations is provided in note 7.A.

For FY 23-24 business-type long term debt obligations decreased by $415,000, and total $4,401,000 as of June 30, 2024. Significant transactions consist of normal reductions in debt obligation principal due to scheduled payments, $415,000.
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CITY OF SEBASTOPOL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
(Rounded to the nearest $1,000)
Detailed information about the City's long-term obligations can be found in the “Notes to the Basic Financial Statements” under section 7.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES:

The City continues to adopt conservative budgets to safeguard financial stability and remain adaptable to changing needs as revenues fluctuate. Regular reviews of revenues and expenditures are conducted to monitor the City's fiscal health and ensure the protection of its financial resources. One promising source of sustainable revenue is an additional sales tax. On July 16, 2024, the City Council adopted a resolution to place a ½ cent sales tax on the November 5, 2024, Municipal Election ballot. This tax is expected to generate about $1.5 million annually. Additionally, people from outside the town who shop here will also contribute to this tax, so the burden is not solely on our residents.

For the 2025 fiscal year, (starts July 1, 2024 and ends June 30, 2025) the following budgetary highlights are noted:
• The projected General Fund revenues for FY 24-25 are $14,304,000, which is an increase of $968,000 from the prior year adjusted budget. There is $714,000 less in funds transferred from the Water and Sewer funds for administrative costs due to a new allocation method determined in early 2024. The budget includes $15,002,000 in General Fund expenses, a decrease of $212,000 from the previous year. This level of spending necessitates service reductions, continuing the trend of cuts from prior years. Overall, the budget reflects a deficit of $698,000, which is less than half of the $1,700,000 deficit from the previous year. While closing such a substantial gap in one year is challenging, this budget shows progress. • The City's water and wastewater systems are in poor condition, requiring over $9 million in additional revenue over the next three years to cover operating deficits, essential capital projects, and build reserves.

The City Council approved substantial rate increases to generate about $2.5 million in the first year. A new Cost Allocation Plan reduced General Fund charges by $714,000 annually. These measures aim to improve the systems' reliability and financial health, while avoiding future steep rate increases through better tracking, master plans, frequent maintenance, and regular Cost Allocation Plans.

The City of Sebastopol invites interested readers to review the detailed operating budget by visiting the website:
https://www.cityofsebastopol.gov/wp-content/uploads/2022/11/FY24-25-Adopted-Budget-for-Viewing.pdf 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 Administrative Services Director at the City of Sebastopol, 7120 Bodega Avenue, Sebastopol, CA 95472, (707) 823-7863, [email protected].
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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, 2024
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 9,915,942 $ 1,019,887 $ 10,935,829 Restricted cash and investments with fiscal agents 1,861,555 - 1,861,555 Receivables (net of allowances for uncollectible amount):

Accounts receivable 689,032 713,678 1,402,710
Taxes receivable 1,106,415 - 1,106,415
Interest receivable 51,208 3,596 54,804
Lease receivable 36,538 - 36,538
Prepaid items 205,154 288,480 493,634
Total current assets 13,865,844 2,025,641 15,891,485
Noncurrent assets:

Notes receivable 181,542 - 181,542
Leases receivable 229,919 - 229,919
Internal balances 1,100,000 (1,100,000) -
Capital assets:

Non-depreciable 7,715,206 3,949,442 11,664,648
Depreciable, net 7,139,421 6,273,023 13,412,444
Total capital assets 14,854,627 10,222,465 25,077,092
Total noncurrent assets 16,366,088 9,122,465 25,488,553 Total assets 30,231,932 11,148,106 41,380,038

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 5,086,256 1,122,689 6,208,945 Deferred outflows of resources - OPEB 216,812 - 216,812 Total deferred outflows of resources 5,303,068 1,122,689 6,425,757

LIABILITIES
Current liabilities:

Accounts payable 670,428 263,280 933,708
Accrued interest payable 9,145 5,444 14,589
Accrued liabilities 281,130 - 281,130
Deposits payable 353,973 7,490 361,463
Unearned revenues 9,417 50,165 59,582
Total OPEB liability - due within one year 91,634 - 91,634 Compensated absences - due within one year 750,000 4,000 754,000 Long term debt - due within one year 208,839 419,533 628,372 Total current liabilities 2,374,566 749,912 3,124,478
Noncurrent liabilities:

Compensated absences - due in more than one year 414,940 57,313 472,253 Long term debt - due in more than one year 1,154,771 3,981,529 5,136,300 Total OPEB liability - due in more than one year 1,630,675 - 1,630,675 Net pension liability 13,369,294 2,960,338 16,329,632
Total noncurrent liabilities 16,569,680 6,999,180 23,568,860 Total liabilities 18,944,246 7,749,092 26,693,338

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 507,402 167,520 674,922 Deferred inflows of resources - OPEB 332,428 - 332,428
Deferred inflows of resources - leases 259,651 - 259,651 Total deferred inflows of resources 1,099,481 167,520 1,267,001

NET POSITION
Net investment in capital assets 13,491,017 5,821,403 19,312,420 Restricted for:

Flood recovery 999,544 - 999,544
Housing 208,277 - 208,277
Streets 1,090,426 - 1,090,426
Other purposes 293,873 - 293,873
Total restricted 2,592,120 - 2,592,120
Unrestricted (591,864) (1,467,220) (2,059,084)
$ 15,491,273 $ 4,354,183 $ 19,845,456
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, 2024
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary Government:

Governmental activities:

General government $ 3,215,865 $ 223,487 $ 325,366 $ - $ 548,853 Public safety 6,374,018 131,130 344,279 - 475,409
Public works 1,542,964 482,328 - 2,265,289 2,747,617
Parks and recreation 1,163,946 18,871 82,771 - 101,642
Interest on long-term debt 33,287 - - - -
Total governmental activities 12,330,080 855,816 752,416 2,265,289 3,873,521 Business-type activities:

Water services 2,923,488 2,433,539 - - 2,433,539
Wastewater services 4,269,156 2,870,624 - - 2,870,624
Total business-type activities 7,192,644 5,304,163 - - 5,304,163 Total primary government $ 19,522,724 $ 6,159,979 $ 752,416 $ 2,265,289 $ 9,177,684 General Revenues and Transfers:

Taxes:

Property taxes
Sales taxes
Transient occupancy taxes
Utility user taxes
Franchise taxes
Other taxes
Total taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
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Governmental Business-Type
Activities Activities Total
$ (2,667,012) $ - $ (2,667,012)
(5,898,609) - (5,898,609)
1,204,653 - 1,204,653
(1,062,304) - (1,062,304)
(33,287) - (33,287)
(8,456,559) - (8,456,559)
- (489,949) (489,949)
- (1,398,532) (1,398,532)
- (1,888,481) (1,888,481)
(8,456,559) (1,888,481) (10,345,040)
3,608,219 - 3,608,219
4,521,289 - 4,521,289
519,452 - 519,452
863,179 - 863,179
489,591 - 489,591
114,791 - 114,791
10,116,521 - 10,116,521
496,694 98,679 595,373
104,454 - 104,454
69,977 (69,977) -
10,787,646 28,702 10,816,348
2,331,087 (1,859,779) 471,308
$ 13,160,186 $ 6,213,962 $ 19,374,148
$ 15,491,273 $ 4,354,183 $ 19,845,456
and Changes in Net Position
Net (Expense) Revenue
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FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary 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.

Transportation Grants Special Revenue Fund accounts for the revenues and expenditures of transportation grants awarded to the City.

General Capital Projects Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities.
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City of Sebastopol
Balance Sheet
Governmental Funds
June 30, 2024
Transportation Non-Major Total
Grants Special General Capital Governmental Governmental General Fund Revenue Fund Project Fund Funds Funds
ASSETS
Cash and investments $ 7,605,510 $ - $ 144,702 $ 1,871,755 $ 9,621,967 Restricted cash and investments 1,861,555 - - - 1,861,555 Accounts receivable 152,624 369,251 - 167,157 689,032
Taxes receivable 1,027,019 - - 79,396 1,106,415
Accrued interest receivable 41,486 - - 9,722 51,208
Notes receivable - - - 181,542 181,542
Leases receivable 266,457 - - - 266,457
Due from other funds 489,606 - - 47,840 537,446
Advances to other funds 1,100,000 - - - 1,100,000
Prepaid items 205,154 - - - 205,154
Total assets $ 12,749,411 $ 369,251 $ 144,702 $ 2,357,412 $ 15,620,776

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 461,356 $ - $ 195,454 $ 1,824 $ 658,634 Due to other funds - 369,251 - 168,195 537,446
Unearned revenues 1,134 - - 8,283 9,417
Deposits 353,973 - - - 353,973
Total liabilities 816,463 369,251 195,454 178,302 1,559,470 Deferred inflows of resources:

Unavailable revenues 6,806 369,251 - 226,166 602,223
Deferred inflow of resources - leases 259,651 - - - 259,651 Total deferred inflow of resources 266,457 369,251 - 226,166 861,874 Fund Balances:

Nonspendable:

Advances to other funds 1,100,000 - - - 1,100,000
Prepaid items 205,154 - - - 205,154
Restricted:

Flood recovery 999,544 - - - 999,544
Highways and streets - - - 1,090,426 1,090,426
Affordable housing - - - 208,277 208,277
Pension and OPEB 1,861,555 - - - 1,861,555
Other - - - 293,873 293,873
Total restricted 2,861,099 - - 1,592,576 4,453,675
Committed:

Street projects - - - 417,314 417,314
Assigned:

Buildings, facilities, and infrastructure 860,451 - - - 860,451 Equipment, technology, and vehicles 643,216 - - - 643,216 Pension and OPEB 1,200,046 - - - 1,200,046
Total assigned 2,703,713 - - - 2,703,713
Unassigned 4,796,525 (369,251) (50,752) (56,946) 4,319,576 Total fund balances 11,666,491 (369,251) (50,752) 1,952,944 13,199,432 Total liabilities, deferred inflows of
resources, and fund balances $ 12,749,411 $ 369,251 $ 144,702 $ 2,357,412 $ 15,620,776 Major Funds
See accompanying Notes to Basic Financial Statements.
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Total Fund Balances - Total Governmental Funds $ 13,199,432

Non-depreciable $ 7,715,206
Depreciable, net 7,139,421
Total capital assets 14,854,627

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. 602,223

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 5,086,256
Deferred outflows of resources - OPEB 216,812
Deferred inflows of resources - pension (507,402)
Deferred inflows of resources - OPEB (332,428)
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 (750,000)
Long term debt - due within one year (208,839)
Compensated absences - due in more than one year (414,940) Long term debt - due in more than one year (1,154,771)
Total OPEB liability - due within one year (91,634)
Total OPEB liability - due in more than one year (1,630,675) Net pension liability (13,369,294)
Total long-term liabilities (17,620,153)

Net Position of Governmental Activities $ 15,491,273
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:

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, 2024
See accompanying Notes to Basic Financial Statements.
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Statement of Revenues, Expenditures and Changes in Fund Balances Transportation Non-Major Total
Grants Special General Capital Governmental Governmental General Fund Revenue Fund Project Fund Funds Funds
REVENUES:

Property taxes $ 3,480,412 $ - $ - $ 127,807 $ 3,608,219 Sales and use taxes 4,626,788 - - 192,383 4,819,171
Transient occupancy tax 519,452 - - - 519,452
Utility users tax 863,179 - - - 863,179
Franchise fees 489,591 - - - 489,591
Licenses and permits 515,073 - - 7,300 522,373
Fines and forfeitures 34,665 - - - 34,665
Intergovernmental 498,947 1,276,452 - 828,867 2,604,266 Interest and rents 468,631 - - 79,257 547,888
Charges for services 191,209 - - 66,462 257,671
Miscellaneous 101,715 - - 750 102,465
Total revenues 11,789,662 1,276,452 - 1,302,826 14,368,940 EXPENDITURES:

Current:

General government 2,838,961 - - 133,726 2,972,687
Public safety 5,987,388 - - - 5,987,388
Parks and recreation 978,798 - - 618 979,416
Public works 807,848 894 - 296,036 1,104,778
Capital outlay 549,126 - 3,199,335 - 3,748,461
Debt service:

Principal 267,938 - - 129,328 397,266
Interest 32,468 - - 817 33,285
Total expenditures 11,462,527 894 3,199,335 560,525 15,223,281 REVENUES OVER (UNDER) EXPENDITURES 327,135 1,275,558 (3,199,335) 742,301 (854,341) OTHER FINANCING SOURCES (USES):

Transfers in 328,982 - 3,154,270 62,048 3,545,300
Transfers out (960,764) (1,644,809) - (869,750) (3,475,323) Total other financing sources (uses) (631,782) (1,644,809) 3,154,270 (807,702) 69,977 Net change in fund balances (304,647) (369,251) (45,065) (65,401) (784,364) FUND BALANCES:

Beginning of year 11,971,138 - (5,687) 2,018,345 13,983,796 End of year $ 11,666,491 $ (369,251) $ (50,752) $ 1,952,944 $ 13,199,432 City of Sebastopol
Governmental Funds
For the year ended June 30, 2024
Major Funds
See accompanying Notes to Basic Financial Statements.
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Net Change in Fund Balances - Total Governmental Funds $ (784,364) Wide 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. 3,743,590
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. (921,046) Employer contributions for pension paid after the measurement date were recorded as expenditures in the governmental funds. However, in the Government-Wide Financial Statements these contributions are deferred. 1,344,476
Employer contributions for OPEB paid after the measurement date were recorded as expenditures in the governmental funds. However, in the Government-Wide Financial Statements these contributions are deferred. 91,634
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. 369,337 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.
- Principal repayments on long-term liabilities 397,266 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. (130,438) 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. 222,247 Pension (expense) income 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. (2,001,615)

Change in Net Position of Governmental Activities $ 2,331,087 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, 2024
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, 2024
Insurance
and Benefits
Internal
Water Wastewater Total Service Fund
ASSETS
Current assets:

Cash and investments $ 718,743 $ 301,144 $ 1,019,887 $ 293,975 Accounts receivable 306,730 406,948 713,678 -
Interest receivable 3,596 - 3,596 -
Prepaids 168,592 119,888 288,480 -
Total current assets 1,197,661 827,980 2,025,641 293,975 Noncurrent assets:

Capital assets:

Non-depreciable 2,329,449 1,619,993 3,949,442 -
Depreciable, net 4,095,829 2,177,194 6,273,023 -
Total capital assets 6,425,278 3,797,187 10,222,465 -
Total noncurrent assets 6,425,278 3,797,187 10,222,465 - Total assets 7,622,939 4,625,167 12,248,106 293,975

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 575,738 546,951 1,122,689 - Total deferred outflows of resources 575,738 546,951 1,122,689 -

LIABILITIES
Current liabilities:

Accounts payable 161,942 101,338 263,280 292,924
Accrued interest payable 2,879 2,565 5,444 -
Deposits payable 7,490 - 7,490 -
Unearned revenues 165 50,000 50,165 -
Compensated absences, due within one year 2,000 2,000 4,000 - Long term debt, due within one year 267,853 151,680 419,533 - Total current liabilities 442,329 307,583 749,912 292,924 Noncurrent liabilities:

Compensated absences, due in more than one year 22,525 34,788 57,313 - Advances from other funds - 1,100,000 1,100,000 -
Long term debt, due in more than one year 2,657,744 1,323,785 3,981,529 - Net pension liability 1,518,122 1,442,216 2,960,338 -
Total noncurrent liabilities 4,198,391 3,900,789 8,099,180 - Total liabilities 4,640,720 4,208,372 8,849,092 292,924

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 85,908 81,612 167,520 - Total deferred inflows of resources 85,908 81,612 167,520 -

NET POSITION
Net investment in capital assets 3,499,681 2,321,722 5,821,403 - Unrestricted (27,632) (1,439,588) (1,467,220) 1,051
Total net position $ 3,472,049 $ 882,134 $ 4,354,183 $ 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, 2024
Insurance and
Benefits Internal
Water Wastewater Total Service Fund
OPERATING REVENUES:

Charges for services $ 2,277,631 $ 2,838,072 $ 5,115,703 $ 1,363,065 Other revenues 155,908 32,552 188,460 -
Total operating revenues 2,433,539 2,870,624 5,304,163 1,363,065 OPERATING EXPENSES:

Personnel services 559,642 494,737 1,054,379 -
Interfund charges for services 1,261,494 1,041,462 2,302,956 - Contractual and other services 370,869 125,103 495,972 - Intergovernmental treatment costs - 1,952,842 1,952,842 - Utilities 203,566 63,567 267,133 -
Supplies 135,827 29,942 165,769 -
Insurance, claims, and expenses 90,730 68,625 159,355 1,363,065 Depreciation 244,761 459,696 704,457 -
Total operating expenses 2,866,889 4,235,974 7,102,863 1,363,065 OPERATING INCOME (433,350) (1,365,350) (1,798,700) -
NONOPERATING REVENUES (EXPENSES):

Interest expense (56,599) (33,182) (89,781) -
Interest and investment revenue 66,060 32,619 98,679 -
Total nonoperating revenues (expenses) 9,461 (563) 8,898 - INCOME (LOSS) BEFORE TRANSFERS (423,889) (1,365,913) (1,789,802) - Transfers out (64,540) (5,437) (69,977) -
Total transfers (64,540) (5,437) (69,977) -
Change in net position (488,429) (1,371,350) (1,859,779) -

NET POSITION
Beginning of year $ 3,960,478 $ 2,253,484 $ 6,213,962 $ 1,051 End of year $ 3,472,049 $ 882,134 $ 4,354,183 $ 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, 2024
Insurance and
Benefit Internal
Water Wastewater Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 2,438,479 $ 3,005,578 $ 5,444,057 $ - Cash payments from other funds - - - 1,363,530
Cash received from others 155,908 32,552 188,460 -
Cash payments to suppliers for goods and services (795,015) (2,285,516) (3,080,531) (782,189) Cash payments to other funds for services (1,261,494) (1,041,462) (2,302,956) - Cash paid to employees (479,209) (416,816) (896,025) -
Net cash (used in) operating activities 58,669 (705,664) (646,995) 581,341 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Loans from other funds - 1,100,000 1,100,000 -
Loans repaid to other funds - - - (287,366)
Transfers out (64,540) (5,437) (69,977) -
Net cash provided by (used in) noncapital financing activities (64,540) 1,094,563 1,030,023 (287,366) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (930,406) (789,706) (1,720,112) - Long-term debt repayment (261,527) (153,304) (414,831) - Interest paid and fiscal charges (56,599) (33,182) (89,781) - Net cash (used in) capital and related financing activities (1,248,532) (976,192) (2,224,724) - CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received 68,159 35,188 103,347 -
Theft of investment funds - - - -
Net cash provided by investing activities 68,159 35,188 103,347 - NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,186,244) (552,105) (1,738,349) 293,975 CASH AND CASH EQUIVALENTS - Beginning of year 1,904,987 853,249 2,758,236 - CASH AND CASH EQUIVALENTS - End of year $ 718,743 $ 301,144 $ 1,019,887 $ 293,975

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

Operating income $ (433,350) $ (1,365,350) $ (1,798,700) $ - Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 244,761 459,696 704,457 -
Changes in assets and liabilities:

Accounts receivable 161,848 167,506 329,354 465
Prepaids - - - 549,491
Deferred outflows - pension 16,361 15,543 31,904 -
Accounts payable 5,977 (45,437) (39,460) 31,385
Deposits payable (1,000) - (1,000) -
Compensated absences 2,746 4,119 6,865 -
Net pension liability 86,752 82,415 169,167 -
Deferred inflows - pension (25,426) (24,156) (49,582) - Total adjustments 492,019 659,686 1,151,705 581,341
Net cash provided by operating activities $ 58,669 $ (705,664) $ (646,995) $ 581,341 Enterprise Funds
See accompanying Notes to Basic Financial Statements.
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NOTES TO BASIC

FINANCIAL STATEMENTS
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

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. 41 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

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 Transportation Grants Special Revenue Fund accounts for the revenues and expenditures of transportation grant funds that are restricted to be used for transportation projects.

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

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.
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

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.

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.

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.
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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. Leases - Lessor
The City is a lessor for a noncancellable lease of land. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 44 Agenda Item Number 5
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. 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.

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
J. 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 assets 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 assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time.
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. 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.

L. 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.

M. 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.

N. 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.” 46 Agenda Item Number 5
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued N. Net Position and Fund Equity, Continued
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.

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.

O. 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. 47 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. 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.

Q. 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.

R. 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.

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, 2023
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
S. New Accounting Pronouncements
In 2024, the City adopted the new accounting standards to conform to the following Governmental Accounting Standards Board Statements:

GASB Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No.

62. This main purpose of this Statement is to strengthen accounting and financial reporting standards with respect to accounting changes and corrections of errors. The statement provides detailed descriptions (1) changes in accounting principles; (2) changes in accounting estimates; (3) changes in reporting entity. Those changes need to disclose the nature and reasons in the financial statements to ensure the better transparency and consistency in financial reporting. 48 Agenda Item Number 5
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

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

A. Summary of Cash and Investments
Cash and investments as of June 30, 2024 consist of the following:

Governmental Business-Type
Activities Activities Total
Cash and investments $ 9,915,942 $ 1,019,887 $ 10,935,829 Restricted cash and investments 1,861,555 - 1,861,555
Total cash and investments $ 11,777,497 $ 1,019,887 $ 12,797,384 Government-Wide Statement of Net Position
Deposits:

Cash on hand $ 500
Deposits with financial institution 1,459,726
Total cash on hand and deposits 1,460,226
Investments
County of Sonoma investment pool 67,956
Local Agency Investment Pool (LAIF) 1,767,961
Certificates of deposit 3,901,439
Money market 1,054,464
U.S. Treasury securities 1,435,119
U.S. government bonds 1,248,664
Total investments 9,475,603
Total City Treasury 10,935,829
Restricted cash and investments:

Section 115 trust for pension 1,861,555
Total restricted cash and investments 1,861,555
Total cash and investments $ 12,797,384
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS, Continued
B. Cash Deposits
At June 30, 2024, the carrying amount of the City’s cash and cash equivalents were comprised of the general checking account, which had a book balance of $1,459,726 and petty cash of $500. The bank balance in the City’s general checking was $1,882,199, 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.

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.
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
Cash and investments, including cash with fiscal agents, held in the City by maturity date at June 30, 2024 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.

Presented below is the June 30, 2024 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, 2024 the City did not have investments (other than in external investment pools) that represented 5% or more of the City’s total investments.

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

County of Sonoma investment pool $ 67,956 $ 67,956 $ -
Local Agency Investment Pool (LAIF) 1,767,961 1,767,961 - Certificates of deposit 3,901,439 1,213,894 2,687,545
Money market 1,054,464 1,054,464 -
U.S. Treasury securities 1,435,119 1,223,676 211,443
U.S. government bonds 1,248,664 - 1,248,664
Total $ 9,475,603 $ 5,327,951 $ 4,147,652
Investment Maturities (in years)
Investment Type Fair Value Aaa
Investments:

U.S. Treasury securities $ 1,435,119 $ 1,435,119
U.S. government bonds 1,248,664 1,248,664
Total Investment subject to ratings 2,683,783 $ 2,683,783 Assets not subject to credit ratings:

County of Sonoma investment pool 67,956
Local Agency Investment Pool (LAIF) 1,767,961
Certificates of deposit 3,901,439
Money market 1,054,464
Total investments $ 9,475,603
51 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
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.

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.
52 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS, Continued
E. Fair Value of Investments, Continued
Investment fair value measurements at June 30, 2024 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, 2024, cash and investments with fiscal agents totaled $1,861,555.

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.

H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand.

Investment Type Fair Value Level 1 Level 2 Level 3
Certificates of deposit $ 3,901,439 $ - $ 3,901,439 $ - U.S. Treasury securities 1,435,119 - 1,435,119 -
U.S. government bonds 1,248,664 - 1,248,664 -
Total investments subject to levelling 6,585,222 $ - $ 6,585,222 $ -

Assets not subject to fair value levelling:

Money market 1,054,464
County of Sonoma investment pool 67,956
Local Agency Investment Pool (LAIF) 1,767,961
Total investments $ 9,475,603
Fair Value Measurement Using
53 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS, Continued
H. Investment in State Investment Pool, Continued
The City’s investment with LAIF at June 30, 2024 includes a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

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

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

As of June 30, 2024, the City had $1,767,961 invested in LAIF, which had invested 3.00% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.78% in the previous year.

3. LOANS AND NOTES RECEIVABLE
At June 30, 2024, the City had the following loans and notes receivable:

The solar equipment installation loans are repayable in equal bi-monthly installments over a period of about 32 years by the homeowners, and repayments are made through the City's enterprise utility billing and collection system.

4. LEASE RECEIVABLE
The City reports lease receivables and deferred inflows of resources for the leasing of attachment space for cellular communications. In fiscal year ended June 30, 2024, the City recognized $37,102 in revenues for applicable leases.

City Cell Tower – The City entered into an agreement with a telecommunications company in 2001 to lease space on a tower. The lease term is 30 years, made up of an initial 15-year term plus three 5-year options.

The City considers each optional term to likely be exercised by the lessee. The monthly payments are $3,413.

The City used an annual incremental borrowing rate of 1.77%. The lease receivable as of June 30, 2024 was $266,457, and related deferred inflow of resources as of June 30, 2024 was $259,651.

Party to Loan Purpose of Loan Amount
Governmental Activities:

Individual property owners Solar power equipment installation loans 181,542$ 54 Agenda Item Number 5
Agenda Item Number 5
City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

4. LEASES RECEIVABLE, Continued
Future minimum rental payments are as follows:

5. INTERFUND TRANSACTIONS
A. Due To and Due From
At June 30, 2024, 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.

B. Advance To and Advance From
During the fiscal year, the City’s General Fund provided the City’s Wastewater Enterprise Fund a loan of $1,100,000 for operating activities. The loan is interest free and is to be repaid in full by June 30, 2032.

The loan does not have a formal repayment schedule. The balance of the interfund loan is $1,100,000 as of June 30, 2024.

Year Ending
June 30, Principal Interest Total
2025 36,538 $ 4,421 $ 40,959$
2026 37,190 3,769 40,959
2027 37,853 3,106 40,959
2028 38,529 2,430 40,959
2029 39,216 1,742 40,958
2030-2031 77,131 1,373 78,504
Total $ 266,457 $ 16,841 $283,298
Current $ 36,538 $ 4,421 40,959$
Noncurrent 229,919 12,420 242,339
Total $ 266,457 $ 16,841 283,298$
Due to Other Funds General Fund Non-major funds Total
Transportation Grants $ 369,251 $ - $ 369,251
Non-major funds 120,355 47,840 168,195
Total $ 489,606 $ 47,840 $ 537,446
Due From Other Funds
55 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

5. INTERFUND TRANSACTIONS, Continued
C. Interfund Transfers
The composition of interfund transfers for the year ended June 30, 2024 is as follows:

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

General
General Capital
Projects Fund
Non-Major
Govt Funds Total
Transfer Out
General Fund $ - $ 960,764 $ - $ 960,764
Transportation Grants - 1,644,809 - 1,644,809
Non-Major Govt'l Funds 321,053 548,697 - 869,750
Total Governmental 321,053 3,154,270 - 3,475,323
Water 2,492 - 62,048 64,540
Wastewater 5,437 - - 5,437
Total Enterprise 7,929 - 62,048 69,977
Total Transfers out $ 328,982 $ 3,154,270 $ 62,048 $ 3,545,300 Transfer In
56 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

6. CAPITAL ASSETS
A. Government-Wide Financial Statements
At June 30, 2024, 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 5,563,258 3,863,002 9,426,260
Total non-depreciable assets 7,715,206 3,949,442 11,664,648 Depreciable assets:

Buildings and structures 8,051,799 - 8,051,799
Machinery and equipment 2,884,019 240,178 3,124,197
Reservoirs - 4,290,965 4,290,965
Pipelines and water distribution system - 4,827,174 4,827,174 Pipelines and wastewater colletion system - 8,966,956 8,966,956 Vehicles 3,139,449 1,025,747 4,165,196
Infrastructure 9,489,416 - 9,489,416
Total depreciable assets 23,564,683 19,351,020 42,915,703 Total accumulated depreciation (16,425,262) (13,077,997) (29,503,259) Total depreciable assets, net 7,139,421 6,273,023 13,412,444 Total $ 14,854,627 $ 10,222,465 $ 25,077,092
57 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

6. CAPITAL ASSETS, Continued
B. Governmental Activities
The following is a summary of changes in governmental activity capital assets for the year ended June 30, 2024:

Governmental activities depreciation expense for capital assets for the year ended June 30, 2024 was as follows:

Balance Adjustment/ Balance
July 1, 2023 Additions Deletions Reclassification June 30, 2024 Non-depreciable assets:

Land and improvements $ 2,151,948 $ - $ - $ - $ 2,151,948 Construction in progress 2,686,884 3,204,236 - (327,862) 5,563,258 Total non-depreciable assets 4,838,832 3,204,236 - (327,862) 7,715,206 Depreciable assets:

Buildings and structures 7,954,166 97,633 - - 8,051,799 Machinery and equipment 2,831,311 52,708 - - 2,884,019
Vehicles 2,750,436 389,013 - - 3,139,449
Infrastructure 9,161,554 - - 327,862 9,489,416
Total depreciable assets 22,697,467 539,354 - 327,862 23,564,683 Less accumulated depreciation:

Buildings and structures (6,126,547) (146,730) - - (6,273,277) Machinery and equipment (2,562,807) (89,760) - - (2,652,567) Vehicles (1,933,484) (211,704) - - (2,145,188)
Infrastructure (4,881,378) (472,852) - - (5,354,230)
Total accumulated depreciation (15,504,216) (921,046) - - (16,425,262) Total depreciable assets, net 7,193,251 (381,692) - 327,862 7,139,421 Total governmental activities, net $ 12,032,083 $ 2,822,544 $ - $ - $ 14,854,627 General government $ 133,459
Public safety 229,202
Public works 414,548
Parks and recreation 143,837
Total depreciation expense $ 921,046
58 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

6. 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, 2024:

Business-type activities depreciation expense for capital assets for the year ended June 30, 2024 was as follows:

Balance Adjustment/ Balance
July 1, 2023 Additions Retirements Reclassification June 30, 2024 Non-depreciable assets:

Land $ 86,440 $ - $ - $ - $ 86,440
Construction in progress 3,321,416 1,720,112 - (1,178,526) 3,863,002 Total non-depreciable assets 3,407,856 1,720,112 - (1,178,526) 3,949,442 Depreciable assets:

Reservoirs 4,290,965 - - - 4,290,965
Pipelines and water distribution system 4,241,289 - - 585,885 4,827,174 Pipelines and wastewater collection system 8,374,315 - - 592,641 8,966,956 Machinery and equipment 240,178 - - - 240,178
Vehicles 1,025,747 - - - 1,025,747
Total depreciable assets 18,172,494 - - 1,178,526 19,351,020 Less accumulated depreciation:

Reservoirs (1,743,265) (139,290) - - (1,882,555)
Pipelines and water distribution system (3,380,995) (60,021) - - (3,441,016) Pipelines and wastewater collection system (6,597,376) (415,825) - - (7,013,201) Machinery and equipment (45,315) (17,000) - - (62,315)
Vehicles (606,589) (72,321) - - (678,910)
Total accumulated depreciation (12,373,540) (704,457) - - (13,077,997) Total depreciable assets, net 5,798,954 (704,457) - 1,178,526 6,273,023 Total capital assets $ 9,206,810 $ 1,015,655 $ - $ - $ 10,222,465 Water $ 244,761
Wastewater 459,696
Total depreciation expense $ 704,457
59 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

7. LONG-TERM DEBT
A. Governmental Activities
The following is a summary of governmental activity long-term debt transactions during the year ended June 30, 2024:

Lease-leaseback Agreement - 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 is 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 City has pledged the Fire Station as collateral for the refunding lease agreement.

The annual debt service requirements for governmental activities (41%) are as follows:

Due in
Balance Balance Due Within More than
July 1, 2023 Additions Retirements June 30, 2024 One Year One Year Lease-leaseback agreements
Refunding lease 2021 - Truist $ 257,053 $ - $ (84,746) $ 172,307 $ 85,681 $ 86,626 Renewable energy 195,178 - (195,178) - - -
Mobile home park 258,008 - (52,580) 205,428 55,186 150,242 Finance purchase agreements
Energy conservation measures 1,050,637 - (64,762) 985,875 67,972 917,903 Total $ 1,760,876 $ - $ (397,266) $ 1,363,610 $ 208,839 $ 1,154,771 Year Ending
June 30, Principal Interest Total
2025 $ 85,681 $ 1,660 $ 87,341
2026 86,626 715 87,341
Total $ 172,307 $ 2,375 $174,682
60 Agenda Item Number 5
Agenda Item Number 5
City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

7. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Lease-leaseback Agreements – Mobile Home Park
The City 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 lease was for $817,500 and it also is payable from any source of legally available funds.

The annual debt service requirements are as follows
Finance Purchase Agreement – Energy Conservation Measures In fiscal year 2022, the City entered into an equipment purchase agreement with Signature Public Funding Group to acquire various equipment and improvements, consisting of primarily energy efficiency and conservation project, which includes equipment, design, build and installation work and various implementation measurement and verification services related to guaranteed energy savings.

The total equipment cost and proceeds received from Signature Public Funding Corp totaled $4,938,891.

Annual debt service requirements of $374,650 is due July 1st each year, commencing on July 1st, ,2022 and final payment due on July 1st, 2036. Annual interest charged on the financing agreement is 1.770%.

The annual debt service requirements for governmental activities (22.8%) are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 55,186 $ 9,698 64,884$
2026 57,925 6,659 64,584
2027 60,797 3,787 64,584
2028 31,520 772 32,292
Total $ 205,428 $ 20,916 $226,344
Year Ending
June 30, Principal Interest Total
2025 $ 67,972 $ 17,414 85,386$
2026 69,175 16,211 85,386
2027 70,400 14,987 85,387
2028 71,646 13,741 85,387
2029 72,914 12,472 85,386
2030-2034 384,389 42,540 426,929
2035-2037 249,379 8,807 258,186
Total $ 985,875 $ 126,172 $1,112,047
61 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

7. LONG-TERM DEBT, Continued
B. Business-type Activities
The following is a summary of business-type activity long-term debt transactions during the year ended June 30, 2024:

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.

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.

Due in
Balance Balance Due Within More than
July 1, 2023 Additions Retirements June 30, 2024 One Year One Year Refunding loan 2021 - Truist 891,079$ $ - $ (66,021) $ 825,058 67,415$ 757,643$ Lease-leaseback agreements
Refunding lease 2021 - Truist 365,560 - (120,519) 245,041 121,848 123,193 Finance purchase agreements
Energy conservation measures 3,559,254 - (228,291) 3,330,963 230,270 3,100,693 Total $4,815,893 $ - $ (414,831) $ 4,401,062 $419,533 $3,981,529 62 Agenda Item Number 5
Agenda Item Number 5
City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

7. LONG-TERM DEBT, Continued
B. Business-type Activities, Continued
Refunding Loan 2021 – Truist Bank, Continued
Gross revenues, net revenues, and total debt service for the Water Fund were $2,499,599, ($122,529), and $318,126 respectively for fiscal year 2024. Net revenues were equal 0% of total debt service for the Water Fund for fiscal year 2024 that was below the required 120%. The City underwent a rate study to ensure compliance with the net revenues covenant in future years.

Refunding Loan 2021 – Truist Bank, Continued
The annual debt service requirements for the installment sale agreement 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 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:

Year Ending
June 30, Principal Interest Total
2025 $ 67,415 $ 16,539 $ 83,954
2026 68,839 15,115 83,954
2027 70,293 13,662 83,955
2028 71,778 12,177 83,955
2029 73,294 10,660 83,954
2030-2034 390,353 29,419 419,772
2035-2035 83,086 868 83,954
Total $ 825,058 $ 98,440 $ 923,498
Year Ending
June 30, Principal Interest Total
2025 $ 121,848 $ 2,360 124,208$
2026 123,193 1,015 124,208
Total $ 245,041 $ 3,375 $248,416
63 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

7. LONG-TERM DEBT, Continued
B. Business-type Activities, Continued
Finance Purchase Agreement – Energy Conservation Measures In fiscal year 2022, the City entered into an equipment purchase agreement with Signature Public Funding Group to acquire various equipment and improvements, consisting of primarily energy efficiency and conservation projects, which includes equipment, design, build and installation work and various implementation measurement and verification services related to guaranteed energy savings.

The total equipment cost and proceeds received from Signature Public Funding Corp totaled $4,938,891.

Annual debt service requirements of $374,650 is due July 1st each year, commencing on July 1st, ,2022 and final payment due on July 1st, 2036. Annual interest charged on the financing agreement is 1.770%.

The annual debt service requirements for governmental activities (77.2%) are as follows:

8. 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, 2024 is as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 230,270 $ 58,994 289,264$
2026 234,346 54,918 289,264
2027 238,494 50,770 289,264
2028 242,716 46,548 289,264
2029 247,010 42,253 289,263
2030-2034 1,302,199 144,116 1,446,315
2035-2037 835,928 29,838 865,766
Total $ 3,330,963 $ 427,437 $3,758,400
Due Due in
Balance Balance Within More than
July 1, 2023 Additions Retirements June 30, 2024 One Year One Year Governmental activities $ 1,034,502 $ 827,634 $ (697,196) $ 1,164,940 $ 750,000 $ 414,940 Business-type activities 54,448 43,560 (36,695) 61,313 4,000 57,313 Total $ 1,088,950 $ 871,194 $ (733,891) $ 1,226,253 $ 754,000 $ 472,253 64 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

9. OTHER FUND DISCLOSURES
A. Deficit Balances
At June 30, 2024, 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.

10. 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 California Intergovernmental Risk Authority Joint Powers Authority (CIRA). CIRA 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 CIRA 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 CIRA can be obtained from its administrative offices at 414 W. Napa Street, Sonoma, California 95476.

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 CIRA.

There have been no significant changes in insurance coverages in fiscal 2024. Settlements have not exceeded coverage for each of the past three fiscal years. The City has no significant uninsured claim liabilities at June 30, 2024.

Major governmental Funds:

Transportation Grants Special Revenue 369,251$
General Capital Project 50,752$
Non-major governmental Funds:

Park in Lieu 7,563$
Supplemental Planning Grant (SB2 & LEAP) 19,823$
Clean Renewable Energy Bonds 29,560$
65 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

11. 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. 66 Agenda Item Number 5
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

11. PENSION PLANS, Continued
B. Benefits Provided, Continued
The rate plan provisions and benefits in effect at June 30, 2024 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, 2023 were $1,763,271.

The City’s contributions to the Plan for the fiscal year ended June 30, 2024 were $1,657,901.

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 12.470% 7.680% 25.650% Required unfunded liability payment $ 482,526 $ - $ 74,364 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%

25.650% 13.540% 13.540%
$ 529,310 $ 1,144 $ -
Miscellaneous
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Required unfunded liability payment
Safety
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

11. PENSION PLANS, Continued
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $16,329,632.

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, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2022 rolled forward to June 30, 2023 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, 2022 and 2023 were as follows:

For the year ended June 30, 2024, the City recognized pension income of $2,466,526. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Proportion - June 30, 2022 0.13442%
Proportion - June 30, 2023 0.13090%
Change - Increase (Decrease) -0.00352%
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date $ 1,657,901 $ -
Changes of assumptions 968,300 -
Differences between expected and
actual experience 1,029,374 115,080
Changes in employer's proportion - 349,148
Differences between the employer's
contribution and the employer's
proportionate share of contributions 128,449 210,694
Net differences between projected
and actual earnings on plan
investments 2,424,921 -
Total $ 6,208,945 $ 674,922
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City Council Meeting Packet of February 4, 2025

City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

11. PENSION PLANS, Continued
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$1,657,901 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, 2025. 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, 2022 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 6.90% 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 6.90 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90 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:
2025 $ 1,128,124
2026 793,056
2027 1,886,297
2028 68,645
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost
Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by entry age and
service
Investment Rate of Return
(1) 6.90%
Mortality Derived by CalPERS
membership data for all
funds
(1) Net of pension plan investment expenses.
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

11. PENSION PLANS, Continued
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

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.

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:

New
Strategic
Asset Class Allocation Real Return
(1)(2)
Global Equity - Non-Cap-Weighted 30.00% 4.45%
Global Equity - Cap-Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-Backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(1) Figures are based on the 2021-22 Asset Liability Management Study. (1) An expected inflation of 2.3% used for this period. 1% Decrease 5.90%
Net Pension Liability $ 23,858,227
Current Discount Rate 6.90%
Net Pension Liability $ 16,329,632
1% Increase 7.90%
Net Pension Liability $ 10,152,993
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

11. PENSION PLANS, Continued
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
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, 2024, the City reported no payable for outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.

12. 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, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms under the Retiree Health Plan:

Active employees 44
Inactive employees or beneficiaries currently receiving benefits 23 Total 67
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, 2023, the City contributed $91,957 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.
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

12. OTHER POSTEMPLOYMENT HEALTH CARE BENEFITS, Continued D. Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2023 and was determined by an actuarial valuation dated June 30, 2023 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 4.09% to 3.86% for measurement period ended June 30, 2023.

F. Discount Rate
The discount rate used to measure the total OPEB liability was 3.86%. 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 measurement date.

G. Changes in the Total OPEB Liability
The changes in the total OPEB liability for the OPEB Plan are as follows:

Valuation Date June 30, 2023
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Discount Rate 3.86%
Inflation 2.30%
Salary Increases 2.80%
Mortality
(1) Derived by CalPERS
membership data for all funds
Healthcare cost trend rates: 4.20% to 7.40%
Total OPEB
Liability
Balance at June 30, 2022 $ 1,711,562
Changes in the year:

Service cost 14,299
Interest on the total OPEB liability 68,708
Differences between actual and expected
experience
(55,023)
Changes in assumptions 74,720
Benefits paid to retirees (91,957)
Net changes 10,747
Balance at June 30, 2023 $ 1,722,309
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

12. OTHER POSTEMPLOYMENT HEALTH CARE BENEFITS, Continued 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, 2023:

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, 2023:

J. OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB income of $369,337. For the fiscal year ended June 30, 2024, the City reported deferred outflows of resources related to OPEB from the following sources:
1% Decrease
Total OPEB liability $ 1,904,741
Current Discount Rate
Total OPEB liability $ 1,722,309
1% Increase
Total OPEB liability $ 1,566,949
1% Decrease -
Total OPEB liability $ 1,658,190
Current Rate -
Total OPEB liability $ 1,722,309
1% Increase -
Total OPEB liability $ 1,797,060
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent to
measurement date $ 91,634 $ -
Differences between expected and
actual experience - 281,913
Changes of assumptions 125,178 50,515
Total $ 216,812 $ 332,428
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City of Sebastopol
Notes to Basic Financial Statements
For the year ended June 30, 2024

12. OTHER POSTEMPLOYMENT HEALTH CARE BENEFITS, Continued J. OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB, Continued The $91,634 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the Total OPEB liability during the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized as expense as follows:

13. 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.

Fiscal Year
Ending June 30:
2025 $ (52,635)
2026 (52,635)
2027 (52,630)
2028 (35,798)
2029 (19,665)
Thereafter 6,113
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REQUIRED

SUPPLEMENTARY INFORMATION
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City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2024

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 is the budget comparison schedule for the General Fund 77 Agenda Item Number 5
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City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2024

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

Taxes:

Property $ 3,241,600 $ 3,241,600 $ 3,443,906 $ 202,306
Real property transfer 50,000 50,000 36,506 (13,494)
Transient occupancy tax 500,000 500,000 519,452 19,452
Sales and use 4,794,560 4,794,560 4,626,788 (167,772)
Utility users tax 902,000 902,000 863,179 (38,821)
Franchises 410,000 410,000 489,591 79,591
Subtotal 9,898,160 9,898,160 9,979,422 81,262
Licenses, permits and fees:

Business licenses 142,500 142,500 154,572 12,072
Animal licenses 14,000 14,000 11,600 (2,400)
Building permits 300,000 300,000 348,900 48,900
Subtotal 456,500 456,500 515,072 58,572
Fines, forfeitures and penalties:

Vehicle code 15,000 15,000 13,906 (1,094)
Parking fines 11,000 11,000 20,760 9,760
Subtotal 26,000 26,000 34,666 8,666
Interest and rentals:

Investment earnings 48,520 48,520 417,434 368,914
Rent - cell tower 41,200 41,200 45,594 4,394
Rent - other 4,800 4,800 5,603 803
Subtotal 94,520 94,520 468,631 374,111
Intergovernmental:

Reimbursements 7,200 7,200 21,584 14,384
Other 20,000 20,000 477,363 457,363
Subtotal 27,200 27,200 498,947 471,747
Charges for current services:

Sales of publications 500 500 - (500)
Planning fees 25,000 25,000 26,457 1,457
Encroachment permits 30,000 30,000 38,128 8,128
Public works services 1,500 1,500 9,965 8,465
Public safety services 26,500 26,500 27,297 797
Fire inspection fees 30,000 30,000 45,248 15,248
Other charges 50,600 50,600 44,114 (6,486)
Subtotal 164,100 164,100 191,209 27,109
Donations and miscellaneous:

Sale of land/building 10,000 10,000 - (10,000)
Miscellaneous 141,000 141,000 101,715 (39,285)
Subtotal 151,000 151,000 101,715 (49,285)
Total revenues 10,817,480 10,817,480 11,789,662 972,182 Budget Amounts
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City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2024

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 170,318 170,318 165,460 4,858
City Manager 272,183 502,683 349,206 153,477
City Attorney 593,621 593,621 707,440 (113,819)
City Clerk 369,258 369,258 311,915 57,343
Finance and accounting 397,920 397,920 369,901 28,019
Planning 597,259 597,259 492,282 104,977
Building inspection 204,581 204,581 177,334 27,247
General government non-departmental 345,348 345,348 265,423 79,925 Subtotal 2,950,488 3,180,988 2,838,961 342,027
Public safety:

Police protection 5,284,802 5,284,802 4,868,593 416,209 Animal control 20,100 20,100 7,813 12,287
Fire protection 1,052,512 1,356,312 1,099,623 256,689
Fire emergency procedures 26,000 26,000 11,359 14,641
Subtotal 6,383,414 6,687,214 5,987,388 699,826
Public works:

Corporation Yard 109,974 109,974 107,849 2,125
Streets Maintenance 385,100 385,100 299,528 85,572
Parking Lots Maintenance 150,103 150,103 144,509 5,594
Engineering 288,087 288,087 255,962 32,125
Subtotal 933,264 933,264 807,848 125,416
Parks and recreation:

Parks & Landscaping Maintenance 520,039 520,039 414,511 105,528 Ives Pool 192,955 195,155 209,171 (14,016)
Recreation administration and programs 392,402 392,402 355,116 37,286 Subtotal 1,105,396 1,107,596 978,798 128,798
Capital outlay 255,430 675,630 549,126 126,504
Debt service:

Principal 225,928 225,928 267,938 (42,010)
Interest 39,975 39,975 32,468 7,507
Subtotal 265,903 265,903 300,406 (34,503)
Total expenditures 11,893,895 12,850,595 11,462,527 1,388,068

REVENUES OVER (UNDER)
EXPENDITURES (1,076,415) (2,033,115) 327,135 2,360,250
Budget Amounts
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City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2024

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):

Transfers in 202,000 202,000 328,982 126,982
Transfers out (487,000) (487,000) (960,764) (473,764)
Total other financing sources (uses) (285,000) (285,000) (631,782) (346,782) Net change in fund balances $ (1,361,415) $ (2,318,115) (304,647) $ 2,013,468 FUND BALANCES:

Beginning of year $ 11,971,138
End of year $ 11,666,491
Budget Amounts
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City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2024

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

Intergovernmental $ - $ 2,232,500 $ 1,276,452 $ (956,048) Total revenues - 2,232,500 1,276,452 (956,048)
EXPENDITURES:

Current:

Public works - - 894 (894)
Total expenditures - - 894 (894)

REVENUES OVER
(UNDER) EXPENDITURES - 2,232,500 1,275,558 (956,942)
OTHER FINANCING SOURCES (USES):

Transfers out - (2,232,500) (1,644,809) 587,691
Total other financing sources (uses) - (2,232,500) (1,644,809) 587,691 Net change in fund balances $ - $ - (369,251) $ (369,251) FUND BALANCES:

Beginning of the year -
End of year $ (369,251)
Budget Amounts
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City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2024
2024 2023 2022 2021
Measurement date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Proportionate share of the net pension liability $ 16,329,632 $ 15,526,113 $ 8,665,009 $ 13,864,877 Proportion of the net pension liability 0.13090% 0.13442% 0.16022% 0.12743% Covered payroll $ 4,138,192 $ 4,318,106 $ 4,348,774 $ 4,272,937 Proportionate share of the net pension liability as
percentage of covered payroll 394.61% 359.56% 199.25% 324.48% Plan fiduciary net position as a percentage of the total pension liability 76.21% 70.72% 88.29% 75.10%
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, and then decreased from 7.15% to 6.9% in fiscal year 2023.

The CalPERS mortality assumptions were adjusted in fiscal year 2019.

A. Schedule of the City's Proportionate Share of the Net Pension Liability - Last 10 Years

2. DEFINED BENEFIT PENSION PLAN
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2020 2019 2018 2017 2016 2015
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 $ 13,028,541 $ 12,272,694 $ 12,460,116 $ 11,055,177 $ 8,978,404 $ 8,365,442

0.12714% 0.12736% 0.12564% 0.12776% 0.13081% 0.13444%
$ 4,137,211 $ 3,956,662 $ 3,908,821 $ 3,816,628 $ 3,636,221 $ 3,289,261 314.91% 310.18% 318.77% 289.66% 246.92% 254.33%

75.26% 75.26% 73.31% 74.06% 78.40% 79.82%
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City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2024
2024 2023 2022 2021
Contractually required contribution
(actuarially determined) $ 1,657,901 $ 1,763,271 $ 1,827,570 $1,686,413 Contribution in relation to the actuarially determined
contributions (1,657,901) (1,763,271) (1,827,570) (1,686,413) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 4,807,478 $ 4,138,192 $ 4,318,106 $ 4,348,774 Contributions as a percentage of covered payroll 34.49% 42.61% 42.32% 38.78% Notes to Schedule
Methods and assumptions used to determine contribution rates:

Valuation date : 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Amortization method: (1) (1) (1) (1)
Assets valuation method: Market Value Market Value Market Value Market Value Inflation: 2.50% 2.50% 2.50% 2.50%
Salary increases: (2) (2) (2) (2)
Investment rate of return: 7.00% 7.00% 7.00% 7.00%
Retirement age: (3) (3) (3) (3)
Mortality: (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) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

B. Schedule of Contributions - Last 10 Years

2. DEFINED BENEFIT PENSION PLAN, Continued
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City Council Meeting Packet of February 4, 2025

2020 2019 2018 2017 2016 2015
$1,530,553 $1,343,860 $1,187,535 $1,099,458 $920,324 $796,771 (1,530,553) (1,343,860) (1,187,535) (1,099,458) (920,324) (796,771) $ - $ - $ - $ - $ - $ -
$ 4,272,937 $ 4,137,211 $ 3,956,662 $ 3,908,821 $ 3,816,628 $ 3,636,221

35.82% 32.48% 30.01% 28.13% 24.11% 21.91%
6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age (1) (1) (1) (1) (1) (1)
Market Value Market Value Market Value Market Value Market Value 15 Year Smoothed
Market Method

2.63% 2.75% 2.75% 2.75% 2.75% 2.75%
(2) (2) (2) (2) (2) (2)

7.25% 7.375% 7.50% 7.50% 7.50% 7.50%
(3) (3) (3) (3) (3) (3)
(4) (4) (4) (4) (4) (4)
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City of Sebastopol
Required Supplementary Information
For the year ended June 30, 2024
2024 2023 2022 2021
Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Total OPEB Liability
Service Cost $ 14,299 $ 22,458 $ 27,917 $ 27,295
Interest on the total OPEB liability 68,708 47,335 72,014 73,479 Differences between expected and actual experience (55,023) (23,434) (551,283) - Changes of assumptions 74,720 (425,755) 10,152 44,769
Benefit payments (91,957) (95,469) (102,849) (97,430)
Net change in total OPEB liability 10,747 (474,865) (544,049) 48,113 Total OPEB Liability - beginning 1,711,562 2,186,427 2,730,476 2,682,363 Total OPEB Liability - ending (a) $ 1,722,309 $ 1,711,562 $ 2,186,427 $ 2,730,476 Covered-employee payroll** $ 4,533,006 $ 4,299,547 $ 4,348,774 $ 4,272,937 Total OPEB liability as a percentage of
covered-employee payroll 37.99% 39.81% 50.28% 63.90%
Notes to Schedule
* Historical information is required only for measurement periods for which GASB 75 is applicable.

Changes of assumptions (measurement period ended June 30,):
2023 - Discount rate was changed to 3.86%.
2022 - Discount rate was changed to 4.09%.
2021 - Discount rate was changed to 2.19%.
2020 - Discount rate was changed to 2.66%.
2018 - Discount rate was changed to 2.98%.

3. OTHER POSTEMPLOYMENT HEALTHCARE BENEFITS
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. 2019 - Discount rate was changed to 2.79%. Mortality rates were updated based on CalPERS 2015 Experience Study.

A. Schedule of Changes in the City's Total OPEB Liability and Related Ratios - Last 10 Years*
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2020 2019 2018
6/30/2019 6/30/2018 6/30/2017
$ 56,412 $ 54,769 $ 58,870
89,484 90,545 81,308
(492,345) - -
75,694 57,987 (168,395)
(99,403) (87,182) (71,368)
(370,158) 116,119 (99,585)
3,052,521 2,936,402 3,035,987
$ 2,682,363 $ 3,052,521 $ 2,936,402
$ 4,137,211 $ 3,956,662 $ 3,982,276

64.84% 77.15% 73.74%
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SUPPLEMENTARY INFORMATION
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General Capital Projects Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities.

GENERAL FUND AND SPECIAL REVENUE FUNDS

BUDGETED MAJOR GOVERNMENTAL FUNDS OTHER THAN
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Capital Projects
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

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

Current:

Capital outlay - - 3,199,335 (3,199,335)
Total expenditures - - 3,199,335 (3,199,335)

REVENUES OVER
(UNDER) EXPENDITURES - - (3,199,335) (3,199,335)
OTHER FINANCING SOURCES (USES):

Transfers in 4,005,300 4,005,300 3,154,270 (851,030)
Total other financing sources (uses) 4,005,300 4,005,300 3,154,270 (851,030) Net change in fund balances $ 4,005,300 $ 4,005,300 $ (45,065) $ (4,050,365) FUND BALANCES:

Beginning of the year (5,687)
End of year $ (50,752)
Budget Amounts
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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
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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.

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

General Government Facilities Fee Fund accounts for general government facilities fees and related expenses.

Fire Facilities Fee Fund accounts for fire facilities fees and related expenses.

Stormwater Facilities Fee Fund accounts for stormwater facilities fees and related expenses.

Supplemental Planning Grant (SB2 and LEAP) Fund accounts for revenue and expenditures of SB2 and LEAP supplemental planning grant monies.

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.

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
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City of Sebastopol
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Police Park in Traffic
Grants Gas Tax Lieu Impact
ASSETS
Cash and investments $ 91,670 $ 58,088 $ - $ 82,266
Accounts receivable 130 - 82,771 -
Taxes receivable - 18,158 - -
Accrued interest receivable 595 269 - 598
Notes receivable - - - -
Due from other funds - - - -
Total assets $ 92,395 $ 76,515 $ 82,771 $ 82,864

LIABILITIES, DEFERRED INFLOWS OF

RESOURCE AND FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ - $ -
Due to other funds - - 90,334 -
Unearned revenues - - - -
Deposits - - - -
Total liabilities - - 90,334 -
Deferred inflows of resources:

Unavailable revenue - - - -
Fund Balances:

Restricted for :

Highways and streets - - - 82,864
Public safety 92,395 76,515 - -
Affordable housing - - - -
Parks and recreation - - - -
Other - - - -
Committed for street projects - - - -
Unassigned - - (7,563) -
Total fund balances 92,395 76,515 (7,563) 82,864
Total liabilities, deferred inflows
of resources, and fund balances $ 92,395 $ 76,515 $ 82,771 $ 82,864 Special Revenue
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Street Lighting Asset Downtown Art in Housing
Assessment Forfeiture Association Lieu Measure M General Plan $ 26,503 $ 10,629 $ 7,210 $ 57,391 $ 371,111 $ 24,462
- - - - - 35,915
642 - - - 44,938 -
82 52 34 385 1,750 363
- - - - - -
- - - - - 47,840
$ 27,227 $ 10,681 $ 7,244 $ 57,776 $ 417,799 $ 108,580
$ - $ - $ - $ 750 $ - $ -
- - - - - -
- 8,283 - - - -
- - - - - -
- 8,283 - 750 - -
- - - - - 29,085
27,227 - - - 417,799 -
- 2,398 - - - -
- - - - - 79,495
- - - 57,026 - -
- - 7,244 - - -
- - - - - -
- - - - - -
27,227 2,398 7,244 57,026 417,799 79,495
$ 27,227 $ 10,681 $ 7,244 $ 57,776 $ 417,799 $ 108,580
Special Revenue
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City of Sebastopol
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Inclusionary Building Permit
Vehicle and Linkage Incremental
Street Reserve Abatement Housing Fund
ASSETS
Cash and investments $ 289,030 $ 7,754 $ 128,158 $ 126,262 Accounts receivable - 3,222 - -
Taxes receivable - - - -
Accrued interest receivable 1,423 35 624 605
Notes receivable - - - -
Due from other funds - - - -
Total assets $ 290,453 $ 11,011 $ 128,782 $ 126,867

LIABILITIES, DEFERRED INFLOWS OF

RESOURCE AND FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ - $ 6
Due to other funds - - - -
Unearned revenues - - - -
Deposits - - - -
Total liabilities - - - 6
Deferred inflows of resources:

Unavailable revenue - - - -
Fund Balances:

Restricted for :

Highways and streets - - - -
Public safety - 11,011 - -
Affordable housing - - 128,782 -
Parks and recreation - - - -
Other - - - -
Committed for street projects 290,453 - - 126,861
Unassigned - - - -
Total fund balances 290,453 11,011 128,782 126,861
Total liabilities, deferred inflows
of resources, and fund balances $ 290,453 $ 11,011 $ 128,782 $ 126,867 Special Revenue
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Community General Supplemental
Development SB1 Road and Government Fire Stormwater Planning Grant Block Grant Maintenance Facilities Fee Facilities Fee Facilities Fee (SB2 & LEAP) $ 22,063 $ 296,298 $ 6,041 $ 2,984 $ 15,812 $ -
- - 22 12 - 45,085
- 15,658 - - - -
275 1,350 - - 75 -
- - - - - -
- - - - - -
$ 22,338 $ 313,306 $ 6,063 $ 2,996 $ 15,887 $ 45,085
$ - $ - $ - $ - $ - $ 1,068
- - - - - 47,840
- - - - - -
- - - - - -
- - - - - 48,908
- - - - - 16,000
- 313,306 - - - -
- - - - - -
- - - - - -
- - - - - -
22,338 - 6,063 2,996 15,887 -
- - - - - -
- - - - - (19,823)
22,338 313,306 6,063 2,996 15,887 (19,823)
$ 22,338 $ 313,306 $ 6,063 $ 2,996 $ 15,887 $ 45,085
Special Revenue
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City of Sebastopol
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Capital Project Debt Service
Total
Clean Non-Major
Renewable Governmental
Undergrounding Energy Bonds Funds
ASSETS
Cash and investments $ 248,023 $ - $ 1,871,755
Accounts receivable - - 167,157
Taxes receivable - - 79,396
Accrued interest receivable 1,207 - 9,722
Notes receivable - 181,542 181,542
Due from other funds - - 47,840
Total assets $ 249,230 $ 181,542 $ 2,357,412

LIABILITIES, DEFERRED INFLOWS OF

RESOURCE AND FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ 1,824
Due to other funds - 30,021 168,195
Unearned revenues - - 8,283
Deposits - - -
Total liabilities - 30,021 178,302
Deferred inflows of resources:

Unavailable revenue - 181,081 226,166
Fund Balances:

Restricted for :

Highways and streets 249,230 - 1,090,426
Public safety - - 182,319
Affordable housing - - 208,277
Parks and recreation - - 57,026
Other - - 54,528
Committed for street projects - - 417,314
Unassigned - (29,560) (56,946)
Total fund balances 249,230 (29,560) 1,952,944
Total liabilities, deferred inflows
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City of Sebastopol
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2024
Police Park in Traffic
Grants Gas Tax Lieu Impact
REVENUES:

Property taxes $ - $ - $ - $ -
Sales and use taxes - - - -
Licenses and permits - - - -
Intergovernmental 124,137 211,450 82,771 -
Interest and rents 2,024 702 1,335 7,423
Charges for services - - 6,500 12,214
Miscellaneous 750 - - -
Total revenues 126,911 212,152 90,606 19,637
EXPENDITURES:

Current:

General Government - - - -
Public works - 179,495 - -
Debt service:

Principal - - 26,684 -
Interest - - 817 -
Total expenditures - 179,495 27,501 -

REVENUES OVER
(UNDER) EXPENDITURES 126,911 32,657 63,105 19,637
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (100,000) - (87,047) (112,816)
Total other financing sources (uses) (100,000) - (87,047) (112,816) Net change in fund balances 26,911 32,657 (23,942) (93,179) FUND BALANCES:

Beginning of the year $ 65,484 $ 43,858 $ 16,379 $ 176,043 End of year $ 92,395 $ 76,515 $ (7,563) $ 82,864
Special Revenue
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Street Lighting Asset Downtown Art in Housing
Assessment Forfeiture Association Lieu Measure M General Plan $ 127,807 $ - $ - $ - $ - $ -
- - - - 192,383 -
- - 7,300 - - -
- - - - - 6,830
784 355 10 3,918 17,470 2,717
- - - (605) - -
- - - - - -
128,591 355 7,310 3,313 209,853 9,547
14,658 - - 44,250 - 44,665
116,541 - - - - -
- - - - - -
- - - - - -
131,199 - - 44,868 - 44,665
(2,608) 355 7,310 (41,555) 209,853 (35,118)
- - - - - -
- - - (16) (292,419) -
- - - (16) (292,419) -
(2,608) 355 7,310 (41,571) (82,566) (35,118)
$ 29,835 $ 2,043 $ (66) $ 98,597 $ 500,365 $ 114,613
$ 27,227 $ 2,398 $ 7,244 $ 57,026 $ 417,799 $ 79,495
Special Revenue
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City of Sebastopol
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2024
Inclusionary Building Permit
Vehicle and Linkage Incremental
Street Reserve Abatement Housing Fund
REVENUES:

Property taxes $ - $ - $ - $ -
Sales and use taxes - - - -
Licenses and permits - - - -
Intergovernmental - - - -
Interest and rents 16,836 103 4,347 3,341
Charges for services - 10,319 - 15,489
Miscellaneous - - - -
Total revenues 16,836 10,422 4,347 18,830
EXPENDITURES:

Current:

General Government - - - -
Public works - - - -
Debt service:

Principal - - - -
Interest - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 16,836 10,422 4,347 18,830
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (157,470) (2,000) - -
Total other financing sources (uses) (157,470) (2,000) - - Net change in fund balances (140,634) 8,422 4,347 18,830 FUND BALANCES:

Beginning of the year $ 431,087 $ 2,589 $ 124,435 $ 108,031 End of year $ 290,453 $ 11,011 $ 128,782 $ 126,861
Special Revenue
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Community General Supplemental
Development SB1 Road and Government Fire Stormwater Planning Grant Block Grant Maintenance Facilities Fee Facilities Fee Facilities Fee (SB2 & LEAP) $ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
39,811 175,941 - - - 187,927
3,567 5,631 74 11 125 -
- - 3,017 2,000 9,428 -
- - - - - -
43,378 181,572 3,091 2,011 9,553 187,927
- - - - - 30,153
- - - - - -
- - - - - -
- - - - - -
- - - - - 30,153
43,378 181,572 3,091 2,011 9,553 157,774
- - - - - -
(95,882) (22,100) - - - -
(95,882) (22,100) - - - -
(52,504) 159,472 3,091 2,011 9,553 157,774
$ 74,842 $ 153,834 $ 2,972 $ 985 $ 6,334 $ (177,597)
$ 22,338 $ 313,306 $ 6,063 $ 2,996 $ 15,887 $ (19,823)
Special Revenue
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City of Sebastopol
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2024
Capital Project Debt Service
Total
Clean Non-Major
Renewable Governmental
Undergrounding Energy Bonds Funds
REVENUES:

Property taxes $ - $ - $ 127,807
Sales and use taxes - - 192,383
Licenses and permits - - 7,300
Intergovernmental - - 828,867
Interest and rents 8,412 72 79,257
Charges for services - 8,100 66,462
Miscellaneous - - 750
Total revenues 8,412 8,172 1,302,826
EXPENDITURES:

Current:

General Government - - 133,726
Public works - - 296,036
Debt service:

Principal - 102,644 129,328
Interest - - 817
Total expenditures - 102,644 560,525

REVENUES OVER
(UNDER) EXPENDITURES 8,412 (94,472) 742,301
OTHER FINANCING SOURCES (USES):

Transfers in - 62,048 62,048
Transfers out - - (869,750)
Total other financing sources (uses) - 62,048 (807,702) Net change in fund balances 8,412 (32,424) (65,401)
FUND BALANCES:

Beginning of the year $ 240,818 $ 2,864 2,018,345
End of year $ 249,230 $ (29,560) $ 1,952,944
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police Grants
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 100,000 $ 100,000 $ 124,137 $ 24,137 Interest and rents 100 100 2,024 1,924
Miscellaneous 800 800 750 (50)
Total revenues 100,900 100,900 126,911 26,011
EXPENDITURES:

Current:

Public safety 7,500 7,500 - 7,500
Total expenditures 7,500 7,500 - 7,500

REVENUES OVER
(UNDER) EXPENDITURES 93,400 93,400 126,911 33,511
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 $ (6,600) $ (6,600) 26,911 $ 33,511 FUND BALANCES:

Beginning of the year $ 65,484
End of year $ 92,395
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 220,700 $ 220,700 $ 211,450 $ (9,250) Interest and rents 200 200 702 502
Total revenues 220,900 220,900 212,152 (8,748)
EXPENDITURES:

Current:

Public works 208,924 208,924 179,495 29,429
Total expenditures 208,924 208,924 179,495 29,429
Net change in fund balances $ 11,976 $ 11,976 32,657 $ 20,681 FUND BALANCES:

Beginning of the year $ 43,858
End of year $ 76,515
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Park in Lieu
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ - $ - $ 82,771 $ 82,771
Interest and rents 500 500 1,335 835
Charges for services 15,000 15,000 6,500 (8,500)
Total revenues 15,500 15,500 90,606 75,106
EXPENDITURES:

Debt service:

Principal 27,586 27,586 26,684 902
Interest 3,884 3,884 817 3,067
Total expenditures 31,470 31,470 27,501 3,969

REVENUES OVER
(UNDER) EXPENDITURES (15,970) (15,970) 63,105 79,075
OTHER FINANCING SOURCES (USES):

Transfers out (205,443) (205,443) (87,047) 118,396
Total other financing sources (uses) (205,443) (205,443) (87,047) 118,396 Net change in fund balances $ (221,413) $ (221,413) (23,942) $ 197,471 FUND BALANCES:

Beginning of the year $ 16,379
End of year $ (7,563)
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Impact
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 1,800 $ 1,800 $ 7,423 $ 5,623
Charges for services - - 12,214 12,214
Total revenues 1,800 1,800 19,637 17,837
EXPENDITURES:

Current:

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

REVENUES OVER
(UNDER) EXPENDITURES 1,800 1,800 19,637 17,837
OTHER FINANCING SOURCES (USES):

Transfers out (110,620) (110,620) (112,816) (2,196)
Total other financing sources (uses) (110,620) (110,620) (112,816) (2,196) Net change in fund balances $ (108,820) $ (108,820) (93,179) $ 15,641 FUND BALANCES:

Beginning of the year $ 176,043
End of year $ 82,864
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Lighting Assessment
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Property taxes $ 128,336 $ 128,336 $ 127,807 $ (529)
Interest and rents 500 500 784 284
Total revenues 128,836 128,836 128,591 (245)
EXPENDITURES:

Current:

General government 14,669 14,669 14,658 11
Public works 116,514 116,514 116,541 (27)
Total expenditures 131,183 131,183 131,199 (16)
Net change in fund balances $ (2,347) $ (2,347) (2,608) $ (261) FUND BALANCES:

Beginning of the year 29,835
End of year $ 27,227
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Asset Forfeiture
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ 355 $ 355
Total revenues - - 355 355
EXPENDITURES:

Current:

Public safety - - - -
Total expenditures - - - -
Net change in fund balances $ - $ - 355 $ 355
FUND BALANCES:

Beginning of the year 2,043
End of year $ 2,398
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Downtown Association
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Licenses and permits $ 8,700 $ 8,700 $ 7,300 $ (1,400)
Interest and rents - - 10 10
Total revenues 8,700 8,700 7,310 (1,390)
EXPENDITURES:

Current:

General government 8,700 8,700 - 8,700
Total expenditures 8,700 8,700 - 8,700
Net change in fund balances $ - $ - 7,310 $ 7,310
FUND BALANCES:

Beginning of the year (66)
End of year $ 7,244
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Art in Lieu
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 500 $ 500 $ 3,918 $ 3,418
Charges for services - - (605) (605)
Total revenues 500 500 3,313 2,813
EXPENDITURES:

Current:

General government 30,000 30,000 44,250 (14,250)
Total expenditures 30,000 30,000 44,868 (13,632)

REVENUES OVER
(UNDER) EXPENDITURES (29,500) (29,500) (41,555) (12,055) OTHER FINANCING SOURCES (USES):

Transfers out (50,500) (50,500) (16) 50,484
Total other financing sources (uses) (50,500) (50,500) (16) 50,484 Net change in fund balances $ (80,000) $ (80,000) (41,571) $ 38,429 FUND BALANCES:

Beginning of the year 98,597
End of year $ 57,026
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure M
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Sales and use taxes $ 190,000 $ 190,000 $ 192,383 $ 2,383 Interest and rents 4,000 4,000 17,470 13,470
Total revenues 194,000 194,000 209,853 15,853
EXPENDITURES:

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

REVENUES OVER
(UNDER) EXPENDITURES 194,000 194,000 209,853 15,853
OTHER FINANCING SOURCES (USES):

Transfers out (509,557) (509,557) (292,419) 217,138
Total other financing sources (uses) (509,557) (509,557) (292,419) 217,138 Net change in fund balances $ (315,557) $ (315,557) (82,566) $ 232,991 FUND BALANCES:

Beginning of the year 500,365
End of year $ 417,799
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing General Plan
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ - $ - $ 6,830 $ 6,830
Interest and rents 500 500 2,717 2,217
Charges for services 10,000 10,000 - (10,000)
Total revenues 10,500 10,500 9,547 (953)
EXPENDITURES:

Current:

General government 25,025 25,025 44,665 19,640
Total expenditures 25,025 25,025 44,665 19,640
Net change in fund balances $ 13,075 $ 13,075 (35,118) $ (48,193) FUND BALANCES:

Beginning of the year 114,613
End of year $ 79,495
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Reserve
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 10,000 $ 10,000 $ 16,836 $ 6,836
Total revenues 10,000 10,000 16,836 6,836
EXPENDITURES:

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

REVENUES OVER
(UNDER) EXPENDITURES 10,000 10,000 16,836 6,836
OTHER FINANCING SOURCES (USES):

Transfers out - (135,000) (157,470) (22,470)
Total other financing sources (uses) - (135,000) (157,470) (22,470) Net change in fund balances $ 10,000 $ (125,000) (140,634) $ (15,634) FUND BALANCES:

Beginning of the year 431,087
End of year $ 290,453
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Vehicle Abatement
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 100 $ 100 $ 103 $ 3
Charges for services 500 500 10,319 9,819
Total revenues 600 600 10,422 9,822
EXPENDITURES:

Current:

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

REVENUES OVER
(UNDER) EXPENDITURES 600 600 10,422 9,822
OTHER FINANCING SOURCES (USES):

Transfers out (2,000) (2,000) (2,000) -
Total other financing sources (uses) (2,000) (2,000) (2,000) - Net change in fund balances $ (1,400) $ (1,400) 8,422 $ 9,822 FUND BALANCES:

Beginning of the year 2,589
End of year $ 11,011
Budget Amounts
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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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 1,500 $ 1,500 $ 4,347 $ 2,847
Total revenues 1,500 1,500 4,347 2,847
EXPENDITURES:

Current:

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

REVENUES OVER
(UNDER) EXPENDITURES 1,500 1,500 4,347 2,847
OTHER FINANCING SOURCES (USES):

Transfers out (10,500) (10,500) - 10,500
Total other financing sources (uses) (10,500) (10,500) - 10,500 Net change in fund balances $ (9,000) $ (9,000) 4,347 $ 13,347 FUND BALANCES:

Beginning of the year 124,435
End of year $ 128,782
Budget Amounts
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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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 500 $ 500 $ 3,341 $ 2,841
Charges for services 10,000 10,000 15,489 5,489
Total revenues 10,500 10,500 18,830 8,330
EXPENDITURES:

Current:

General government - - - -
Total expenditures - - - -
Net change in fund balances $ 10,500 $ 10,500 18,830 $ 8,330 FUND BALANCES:

Beginning of the year 108,031
End of year $ 126,861
Budget Amounts
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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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 203,500 $ 203,500 $ 39,811 $ (163,689) Interest and rents - - 3,567 3,567
Total revenues 203,500 203,500 43,378 (160,122)
EXPENDITURES:

Current:

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

REVENUES OVER
(UNDER) EXPENDITURES 203,500 203,500 43,378 (160,122)
OTHER FINANCING SOURCES (USES):

Transfers out (203,500) (203,500) (95,882) 107,618
Total other financing sources (uses) (203,500) (203,500) (95,882) 107,618 Net change in fund balances $ - $ - (52,504) $ (52,504) FUND BALANCES:

Beginning of the year 74,842
End of year $ 22,338
Budget Amounts
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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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 185,900 $ 185,900 $ 175,941 $ (9,959) Interest and rents 5,000 5,000 5,631 631
Total revenues 190,900 190,900 181,572 (9,328)
EXPENDITURES:

Current:

Public works - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 190,900 190,900 181,572 (9,328)
OTHER FINANCING SOURCES (USES):

Transfers out (160,680) (160,680) (22,100) 138,580
Total other financing sources (uses) (160,680) (160,680) (22,100) 138,580 Net change in fund balances $ 30,220 $ 30,220 159,472 $ 129,252 FUND BALANCES:

Beginning of the year, as restated 153,834
End of year $ 313,306
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Government Facilities Fee
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ 74 $ 74
Charges for services - - 3,017 3,017
Total revenues - - 3,091 3,091
EXPENDITURES:

Current:

General government - - - -
Total expenditures - - - -
Net change in fund balances $ - $ - 3,091 $ 3,091
FUND BALANCES:

Beginning of the year 2,972
End of year $ 6,063
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fire Facilities Fee
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents - - 11 11
Charges for services - - 2,000 2,000
Total revenues - - 2,011 2,011
EXPENDITURES:

Current:

Public safety - - - -
Total expenditures - - - -
Net change in fund balances $ - $ - 2,011 $ 2,011
FUND BALANCES:

Beginning of the year 985
End of year $ 2,996
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Stormwater Facilities Fee
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ 125 $ 125
Charges for services - - 9,428 9,428
Total revenues - - 9,553 9,553
EXPENDITURES:

Current:

Public works - - - -
Total expenditures - - - -
Net change in fund balances $ - $ - 9,553 $ 9,553
FUND BALANCES:

Beginning of the year 6,334
End of year $ 15,887
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Supplemental Planning Grant (SB2 and LEAP)
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 92,600 $ 92,600 $ 187,927 $ 95,327
Total revenues 92,600 92,600 187,927 95,327
EXPENDITURES:

Current:

General government 65,000 65,000 30,153 34,847
Total expenditures 65,000 65,000 30,153 34,847

REVENUES OVER
(UNDER) EXPENDITURES 27,600 27,600 157,774 130,174
OTHER FINANCING SOURCES (USES):

Transfers out (27,600) (27,600) - 27,600
Total other financing sources (uses) (27,600) (27,600) - 27,600 Net change in fund balances $ - $ - 157,774 $ 157,774
FUND BALANCES:

Beginning of the year (177,597)
End of year $ (19,823)
Budget Amounts
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City of Sebastopol
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Undergrounding
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 1,500 $ 1,500 $ 8,412 $ 6,912
Total revenues 1,500 1,500 8,412 6,912
EXPENDITURES:

Capital outlay - - - -
Total expenditures - - - -
Net change in fund balances $ 1,500 $ 1,500 8,412 $ 6,912 FUND BALANCES:

Beginning of the year 240,818
End of year $ 249,230
Budget Amounts
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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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ 72 $ 72
Charges for services - - 8,100 8,100
Total revenues - - 8,172 8,172
EXPENDITURES:

Principal $ 40,597 40,597 102,644 (62,047)
Total expenditures 40,597 40,597 102,644 (62,047)

REVENUES OVER
(UNDER) EXPENDITURES (40,597) (40,597) (94,472) (53,875) OTHER FINANCING SOURCES (USES):

Transfers in - - 62,048 62,048
Total other financing sources (uses) - - 62,048 62,048
Net change in fund balances $ (40,597) $ (40,597) (32,424) $ 8,173 FUND BALANCES:

Beginning of the year 2,864
End of year $ (29,560)
Budget Amounts
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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 annual comprehensive 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. 127 Agenda Item Number 5
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2015 2016 2017 2018
Governmental Activities
Net Investment In Capital Assets $ 8,085,194 $ 8,017,313 $ 8,461,885 $ 9,242,243 Restricted 4,128,962 4,314,008 2,279,908 1,660,668
Unrestricted (4,937,921) (3,524,869) (847,289) (3,254,719) Total Governmental Activities Net Position $ 7,276,235 $ 8,806,452 $ 9,894,504 $ 7,648,192 Business-Type Activities
Net Investment In Capital Assets $ 4,566,315 $ 4,799,099 $ 4,705,054 $ 5,956,258 Restricted 1,544,038 1,404,798 1,468,204 -
Unrestricted 1,051,968 1,691,465 2,900,417 3,430,964
Total Business-Type Activities Net Position $ 7,162,321 $ 7,895,362 $ 9,073,675 $ 9,387,222 Primary Government
Net Investment In Capital Assets $ 12,651,509 $ 12,816,412 $ 13,166,939 $ 15,198,501 Restricted 5,673,000 5,718,806 3,748,112 1,660,668
Unrestricted (3,885,953) (1,833,404) 2,053,128 176,245
Total Primary Government Net Position $ 14,438,556 $ 16,701,814 $ 18,968,179 $ 17,035,414 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
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2019 2020 2021 2022 2023 2024
$ 9,448,772 $ 9,494,832 $ 9,355,475 $ 9,702,362 $ 10,407,888 $ 13,491,017 1,450,299 2,827,215 3,067,342 3,599,203 2,696,032 2,592,120 (2,485,538) (3,011,697) (4,241,598) (5,490,293) 56,266 (591,864) $ 8,413,533 $ 9,310,350 $ 8,181,219 $ 7,811,272 $ 13,160,186 $ 15,491,273 $ 5,966,945 $ 5,594,545 $ 5,199,403 $ 5,259,183 $ 5,366,755 $ 5,821,403 - - - - - -
3,563,944 3,204,183 2,840,979 1,782,914 847,207 (1,467,220) $ 9,530,889 $ 8,798,728 $ 8,040,382 $ 7,042,097 $ 6,213,962 $ 4,354,183 $ 15,415,717 $ 15,089,377 $ 14,554,878 $ 14,961,545 $ 15,774,643 $ 19,312,420 1,450,299 2,827,215 3,067,342 3,599,203 2,696,032 2,592,120 1,078,406 192,486 (1,400,619) (3,707,379) 903,473 (2,059,084) $ 17,944,422 $ 18,109,078 $ 16,221,601 $ 14,853,369 $ 19,374,148 $ 19,845,456 Fiscal Year
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2015 2016 2017 2018
Expenses
Governmental Activities
General government $ 1,451,524 $ 1,761,437 $ 2,055,024 $ 2,278,030 Public safety 4,397,921 4,193,457 5,260,822 5,397,701
Community development 34,936 9,155 - -
Public works 1,331,944 1,376,165 938,036 1,301,865
Parks and recreation 644,813 1,066,267 749,005 801,006
Interest on long-term debt 91,304 83,446 80,566 72,765
Total Governmental Activities Expenses 7,952,442 8,489,927 9,083,453 9,851,367 Business-Type Activities
Water 1,368,427 1,669,223 1,716,237 1,893,951
Wastewater 2,795,925 2,887,638 2,889,787 3,090,686
Total Business-Type Activities Expenses 4,164,352 4,556,861 4,606,024 4,984,637 Total Primary Government Net Expenses $ 12,116,794 $ 13,046,788 $ 13,689,477 $ 14,836,004 Program Revenues
Governmental Activities
Charges for services
General government $ 342,911 $ 915,735 $ 180,139 $ 208,574 Public safety 278,638 240,886 190,018 171,292
Community development 14,390 162,652 - -
Public works 182,878 305,614 539,617 324,193
Parks and recreation 89,971 100,630 66,739 44,247
Operating Contributions and Grants 579,188 484,480 209,472 348,082 Capital Contributions and Grants 742,670 446,248 525,005 473,052 Total Governmental Activities Program Revenues 2,230,646 2,656,245 1,710,990 1,569,440 Business-Type Activities
Charges for services
Water 1,933,720 2,061,253 2,457,698 2,270,224
Wastewater 2,959,002 3,116,767 3,324,934 3,028,330
Capital Contributions and Grants 30,356 142,905 - -
Total Business-Type Activities Program Revenues 4,923,078 5,320,925 5,782,632 5,298,554 Total Primary Government Program Revenues $ 7,153,724 $ 7,977,170 $ 7,493,622 $ 6,867,994 Source: Basic Financial Statements- City of Sebastopol, California

CITY OF SEBASTOPOL

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
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2019 2020 2021 2022 2023 2024
$ 2,000,974 $ 2,609,862 $ 2,657,999 $ 2,966,273 $ 2,702,550 $ 3,215,865 5,813,782 6,263,272 6,760,025 6,741,592 5,108,708 6,374,018 - - - - - -
1,220,155 1,448,514 1,633,132 2,102,767 928,845 1,542,964 976,489 1,159,950 965,252 1,030,936 1,010,731 1,163,946 72,530 70,118 37,858 19,063 30,692 33,287
10,083,930 11,551,716 12,054,266 12,860,631 9,781,526 12,330,080 1,933,059 2,393,602 2,490,214 2,572,104 2,505,812 2,923,488 3,333,798 3,562,838 3,519,884 3,845,631 3,765,130 4,269,156 5,266,857 5,956,440 6,010,098 6,417,735 6,270,942 7,192,644 $ 15,350,787 $ 17,508,156 $ 18,064,364 $ 19,278,366 $ 16,052,468 $ 19,522,724 $ 188,613 $ 214,999 $ 205,711 $ 212,591 $ 218,820 $ 223,487 179,531 152,232 134,888 109,257 134,997 131,130
- - - - - -
345,425 421,397 520,283 394,056 817,936 482,328
26,588 50,605 75,314 24,383 6,675 18,871
239,765 1,856,224 799,896 548,966 2,527,480 752,416
380,700 477,809 741,050 715,013 574,589 2,265,289
1,360,622 3,173,266 2,477,142 2,004,266 4,280,497 3,873,521 2,229,367 2,295,614 2,613,289 2,519,592 2,353,715 2,433,539 3,104,920 2,895,155 3,024,497 3,053,622 3,005,604 2,870,624 - - - - - -
5,334,287 5,190,769 5,637,786 5,573,214 5,359,319 5,304,163 $ 6,694,909 $ 8,364,035 $ 8,114,928 $ 7,577,480 $ 9,639,816 $ 9,177,684 Fiscal Year
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2015 2016 2017
Net (Expense)/Revenue
Governmental Activities $ (5,721,796) $ (5,833,682) $ (7,372,463) Business-Type Activities 758,726 764,064 1,176,608
Total Primary Government Net Expense (4,963,070) (5,069,618) (6,195,855) General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property taxes 1,392,443 1,393,021 2,459,296
Sales and use taxes 1,713,697 1,748,368 2,069,199
Motor vehicle in lieu taxes 591,353 621,440 -
Transient lodging taxes 359,892 482,164 483,738
Other taxes 2,273,971 2,761,809 2,246,817
Investment earnings 22,017 10,492 73,826
Miscellaneous 257,126 327,178 -
Transfers 31,024 31,024 31,023
Special item: Contribution of long-term loans to Sonoma County - (3,602,937) - Extraordinary item: Theft of investment funds - - -
Total Governmental Activities 6,641,523 3,772,559 7,363,899 Business-Type Activities
Investment earnings - - -
Transfers (31,024) (31,024) (31,023)
Extraordinary item: Theft of investment funds - - -
Total Business-Type Activities (31,024) (31,024) (31,023) Total Primary Government 6,610,499 3,741,535 7,332,876
Change in Net Position
Governmental Activities 919,727 (2,061,123) (8,564)
Business-Type Activities 727,702 733,040 1,145,585
Total Primary Government $ 1,647,429 $ (1,328,083) $ 1,137,021 Source: Basic Financial Statements- City of Sebastopol, California

CITY OF SEBASTOPOL

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
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2018 2019 2020 2021 2022 2023 2024
$ (8,281,927) $ (8,723,308) $ (8,378,450) $ (9,577,124) $ (10,856,365) $ (5,501,029) $ (8,456,559) 313,917 67,430 (765,671) (372,312) (844,521) (911,623) (1,888,481) (7,968,010) (8,655,878) (9,144,121) (9,949,436) (11,700,886) (6,412,652) (10,345,040) 2,478,979 2,618,913 2,891,222 2,981,745 3,004,264 3,469,046 3,608,219 3,923,850 3,714,794 3,958,244 3,697,726 4,362,811 4,608,918 4,521,289 - - - - - - -
514,225 529,810 631,742 518,175 402,255 544,128 519,452 1,134,089 1,097,589 1,153,243 1,100,380 1,158,279 1,436,605 1,467,561 67,458 57,812 259,216 343,753 (7,279) (36,045) 496,694
260,341 523,614 563,958 602,464 315,678 796,267 104,454 31,023 32,259 31,024 31,024 31,024 31,024 69,977
- - - - - - -
- - - - (819,039) - -
8,409,965 8,574,791 9,488,649 9,275,267 8,447,993 10,849,943 10,787,646 32,728 31,889 107,261 91,655 25,951 114,512 98,679
(31,023) (32,259) (31,024) (31,024) (31,024) (31,024) (69,977) - - - - (380,961) - -
1,705 (370) 76,237 60,631 (386,034) 83,488 28,702
8,411,670 8,574,421 9,564,886 9,335,898 8,061,959 10,933,431 10,816,348 128,038 (148,517) 1,110,199 (301,857) (2,408,372) 5,348,914 2,331,087 315,622 67,060 (689,434) (311,681) (1,230,555) (828,135) (1,859,779) $ 443,660 $ (81,457) $ 420,765 $ (613,538) $ (3,638,927) $ 4,520,779 $ 471,308 Fiscal Year
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2015 2016 2017
General Fund
Nonspendable $ - $ - $ 11,127
Restricted - - -
Committed 1,015,000 1,015,000 185,000
Assigned - - 2,785,000
Unassigned 2,077,523 3,265,624 3,669,067
Total General Fund $ 3,092,523 $ 4,280,624 $ 6,650,194
All Other Governmental Funds
Nonspendable $ - $ - $ -
Restricted 3,573,382 3,827,777 2,279,908
Committed 595,718 464,800 154,351
Unassigned - - (79,673)
Total All Other Governmental Funds 4,169,100 4,292,577 2,354,586 Total Governmental Funds $7,261,623 $8,573,201 $9,004,780 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)
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2018 2019 2020 2021 2022 2023 2024
$ 46,392 $ 28,818 $ 76,529 $ 42,386 $ 180,191 $ 187,748 $ 1,305,154 - - 1,186,330 1,161,558 2,013,242 1,234,900 2,861,099
185,000 - - - - - -
3,335,000 3,579,535 4,610,435 5,049,534 4,601,816 4,601,125 2,703,713 3,882,742 4,993,434 4,269,513 3,028,639 3,547,112 5,947,365 4,796,525 $ 7,449,134 $ 8,601,787 $ 10,142,807 $ 9,282,117 $ 10,342,361 $ 11,971,138 $ 11,666,491 $ - $ - $ 2,651 $ - $ 555 $ - $ -
1,660,668 1,450,299 1,640,885 1,905,784 1,585,961 1,656,890 1,592,576 279,229 436,477 475,327 491,317 492,217 539,118 417,314 (48,819) (113,745) (10,535) (6,926) (7,776) (183,350) (476,949) 1,891,078 1,773,031 2,108,328 2,390,175 2,070,957 2,012,658 1,532,941 $9,340,212 $10,374,818 $12,251,135 $11,672,292 $12,413,318 $13,983,796 $13,199,432 Fiscal Year
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2015 2016 2017 2018
Revenues
Property taxes $ 1,393,024 $ 2,459,296 $ 2,681,062 $ 2,618,914 Sales and use taxes 3,652,138 3,940,169 4,454,450 4,686,751 Other taxes 1,218,306 - - -
Transient occupany taxes - 483,738 514,225 529,810
Utility users tax - - - -
Franchise fees - 351,568 359,466 323,496
Licenses and permits 314,693 488,234 412,678 304,268
Fines and forfeits 158,380 122,235 88,747 82,605
Intergovernmental 1,443,193 979,119 676,542 765,572
Interest and rents 43,433 92,985 112,795 106,357
Charges for services 843,764 717,270 428,703 320,219
Miscellaneous 67,948 434,506 294,146 523,223
Total Revenues 9,134,879 10,069,120 10,022,814 10,261,215 Expenditures
Current
General Government 1,501,999 1,628,362 2,272,637 1,879,155 Public Safety 4,175,290 4,329,264 4,429,352 4,780,975
Community development 35,436 9,600 - -
Parks and recreation 544,596 524,035 605,061 639,930
Public works 1,073,855 1,443,331 930,256 868,491
Capital Outlay 80,472 554,243 1,188,516 1,471,598
Debt Service:

Principal 358,175 302,357 233,469 245,128
Interest 93,135 82,796 80,566 72,766
Cost of debt issuance - - - -
Total Expenditures 7,862,958 8,873,988 9,739,857 9,958,043 Excess of Revenues Over (Under) Expenditures 1,271,921 1,195,132 282,957 303,172 Other Financing Sources (Uses)
Lease financing - 85,423 66,250 -
Proceeds from debt - - - -
Payment to escrow - - - -
Sales of capital assets - - 799 -
Transfers In 256,301 417,645 198,741 1,396,214
Transfers Out (225,277) (386,622) (167,718) (1,363,955) Total Other Financing Sources (Uses) 31,024 116,446 98,072 32,259 Extraordinary/Special Items - - - -
Net Change In Fund Balances $1,302,945 $1,311,578 $381,029 $335,431 Debt Service as a percentage
of non-capital expenditures 5.8% 4.6% 3.6% 3.7%
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)
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2019 2020 2021 2022 2023 2024
$ 2,891,222 $ 2,981,746 $ 3,004,264 $ 3,333,748 $ 3,469,047 $ 3,608,219 4,907,892 4,609,379 5,321,931 5,744,161 5,766,785 4,819,171 - - - - - -
631,742 518,175 402,255 504,292 544,128 519,452
- - - - - 863,179
358,299 336,738 363,167 405,507 468,871 489,591
324,928 458,640 507,434 454,321 736,252 522,373
55,501 48,171 30,439 27,452 28,766 34,665
540,760 2,213,385 1,401,853 1,071,029 2,749,503 2,604,266 309,812 390,766 38,129 (257,367) 10,009 547,888
318,062 293,920 361,904 261,074 384,367 257,671
563,549 602,471 315,177 927,480 796,090 102,465
10,901,767 12,453,391 11,746,553 12,471,697 14,953,818 14,368,940 1,933,038 2,216,083 2,308,287 2,678,185 3,072,218 2,972,687 4,998,720 5,448,918 6,292,688 6,059,990 6,202,781 5,987,388 - - - - - -
826,945 970,013 792,038 799,261 928,296 979,416
1,051,102 1,062,194 1,161,841 1,293,535 1,171,320 1,104,778 766,230 590,256 680,072 1,797,036 1,669,492 3,748,461
249,619 250,516 275,351 240,932 339,564 397,266
72,531 70,118 37,858 19,063 30,693 33,285
- - 12,842 - - -
9,898,185 10,608,098 11,560,977 12,888,002 13,414,364 15,223,281 1,003,582 1,845,293 185,576 (416,305) 1,539,454 (854,341) - - - - - -
- - 420,626 1,126,307 - -
- - (397,030) - - -
- - - - - -
2,912,182 632,536 632,536 1,511,475 1,758,851 3,545,300 (2,881,158) (601,512) (601,512) (1,480,451) (1,727,827) (3,475,323) 31,024 31,024 54,620 1,157,331 31,024 69,977
- - (819,039) - - -
$1,034,606 $1,876,317 ($578,843) $741,026 $1,570,478 ($784,364)

3.5% 3.2% 3.0% 2.3% 3.3% 3.8%
Fiscal Year
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Total Taxable Estimated
Fiscal Secured Unsecured SBE Assessed Actual Taxable Total Direct Year Property Property Nonunitary Value1 Value2
Tax Rate3
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 1,506,046,992 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 1,769,357,484 1.1570% 2021 1,396,730,880 40,985,208 - 1,437,716,088 1,787,188,307 1.1560% 2022 1,442,646,754 42,502,411 - 1,485,149,165 1,939,139,162 1.1776% 2023 1,519,838,181 40,116,647 - 1,559,954,828 2,307,922,054 1.1369% 2024 1,594,670,072 46,550,880 - 1,641,220,952 2,135,504,184 1.1630% 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
2 3
Total direct tax rate is represented by TRA 05-001, 05-022.

Source: Sonoma County Assessor data, Avenu Insights & Analytics Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values.

CITY OF SEBASTOPOL

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
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Agency 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 0.00520 0.00520 0.00520 0.00520 0.00520 0.00300 0.00300 0.00260 0.00260 0.00250 Sebastopol Elementary Bonds 0.03700 0.03500 0.03300 0.03550 0.03450 0.03350 0.03600 0.06600 0.05700 0.04200 Sonoma County Junior College 0.01800 0.01600 0.01500 0.01400 0.03600 0.01300 0.01300 0.01300 0.01200 0.01150 Sonoma County Junior College 2014 0.00000 0.00000 0.02500 0.02300 0.00000 0.02400 0.02400 0.02400 0.02300 0.02200 Twin Hills Elementary 0.03300 0.03300 0.03200 0.03050 0.03000 0.03000 0.02900 0.02500 0.00000 0.04050 West Sonoma County Unified High 0.01550 0.01900 0.01750 0.01700 0.04850 0.04650 0.04400 0.04000 0.03530 0.03750 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

1.11570 1.11520 1.13470 1.13220 1.16120 1.15700 1.15600 1.17760 1.13690 1.16300 Note:

Source: Sonoma County Assessor data, Avenu Insights & Analytics 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.

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.
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Percent Of Percent Of
Total Total
Taxable Assessed Taxable Assessed
Taxpayer Assessed Value Valuation Assessed Value1 Valuation Barlow Star LLC $ 31,834,640 1.94% N/A N/A
H-1 Real Estate LLC 15,546,928 0.95% N/A N/A
Longs Drug Stores California LLC 9,725,026 0.59% 6,859,089 0.64% The Duckhorn Portfolio 8,349,530 0.51% N/A N/A
Redwood Marketplace 7,596,302 0.46% 6,447,082 0.61%
970 Gravenstein Hwy LLC 6,835,000 0.42% N/A N/A
Maxwell Myers Co & Maxwell A Myers LLC 6,030,490 0.37% N/A N/A LOK Sebastopol Hotel Co LLC 5,876,420 0.36% 5,228,303 0.49% Sonoma Real Estate Holdings LLC 5,466,125 0.33% N/A N/A Diajeff LLC 5,282,266 0.32% 4,483,108 0.42%
Total Top 10 Taxpayers 102,542,727 6.25% $ 23,017,582 2.16% Total Taxable Value $ 1,641,220,952 100.00% $ 1,064,059,320 100.00% Source: Sonoma County Assessor data, Avenu Insights & Analytics Fiscal Year 2015

CITY OF SEBASTOPOL

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO
Fiscal Year 2024
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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%
2022 3,202,351 - 3,202,351 3,202,351 100.00%
2023 3,293,347 - 3,293,347 3,293,347 100.00%
2024 3,443,906 - 3,443,906 3,443,906 100.00%
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
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City of Sebastopol - Bradley Burns
Category 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Eating and Drinking Places $ 39,035 $ 40,730 $ 43,265 $ 33,525 $ 44,326 $ 39,036 $ 36,947 $ 32,746 $ 31,626 $ 29,686 Food Stores 31,691 33,067 35,126 32,999 39,915 44,478 41,357 39,236 39,368 23,074 Apparel Stores 2,399 2,503 2,659 2,840 3,636 3,883 3,784 3,904 3,873 1,044 Auto Dealers and Supplies 9,932 10,363 11,008 9,243 8,837 8,706 9,284 8,252 8,344 158,109 Service Stations 17,525 18,286 19,424 16,734 21,926 19,190 16,825 17,131 20,449 430 Other Retail Stores 32,346 33,751 35,851 31,820 34,202 32,551 31,599 28,826 28,248 3,399 All Other Outlets 27,598 28,796 30,589 27,608 29,984 21,972 21,472 23,529 23,206 31,304 Total $ 160,525 $ 167,497 $ 177,922 $ 154,770 $ 182,826 $ 169,816 $ 161,269 $ 153,625 $ 155,114 $ 247,046 City of Sebastopol - Measure Y
Category 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Eating and Drinking Places $ 36,868 $ 38,469 $ 40,863 $ 33,537 $ 42,423 $ 39,585 $ 37,757 $ 33,618 $ 32,338 $ 29,203 Food Stores 35,413 36,951 39,251 37,966 36,386 38,962 46,524 44,990 42,992 39,556 Apparel Stores 5,600 5,843 6,207 5,293 6,201 6,298 6,676 6,093 6,069 4,950 Auto Dealers and Supplies 38,325 39,990 42,478 33,575 41,451 40,643 44,124 41,412 40,325 40,242 Service Stations 17,876 18,652 19,813 17,106 22,139 19,419 17,085 17,183 19,886 22,676 Other Retail Stores 63,732 66,501 70,639 58,284 53,109 52,863 50,032 47,131 43,757 39,932 All Other Outlets 72,414 75,559 80,262 66,878 68,588 60,692 57,283 56,718 55,486 54,916 Total $ 270,228 $ 281,964 $ 299,513 $ 252,641 $ 270,297 $ 258,462 $ 259,481 $ 247,145 $ 240,853 $ 231,475 City of Sebastopol - Measure T
Category 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Eating and Drinking Places $ 36,868 $ 38,469 $ 40,863 $ 33,537 $ 42,423 $ 39,585 $ 37,757 $ 33,618 $ 32,338 $ 29,203 Food Stores 35,413 36,951 39,251 37,966 36,386 38,962 46,524 44,990 42,992 39,556 Apparel Stores 5,600 5,843 6,207 5,293 6,201 6,298 6,676 6,093 6,069 4,950 Auto Dealers and Supplies 38,325 39,990 42,478 33,575 41,451 40,643 44,124 41,412 40,325 40,242 Service Stations 17,876 18,652 19,813 17,106 22,139 19,419 17,085 17,183 19,886 22,676 Other Retail Stores 63,732 66,501 70,639 58,284 53,109 52,863 50,032 47,131 43,757 39,932 All Other Outlets 72,414 75,559 80,262 66,878 68,588 60,692 57,283 56,718 55,486 54,916 Total $ 270,228 $ 281,964 $ 299,513 $ 252,641 $ 270,297 $ 258,462 $ 259,481 $ 247,145 $ 240,853 $ 231,475 City of Sebastopol - Total
Category 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Eating and Drinking Places $ 112,819 $ 117,719 $ 125,046 $ 100,593 $ 129,249 $ 118,216 $ 112,516 $ 100,029 $ 96,436 $ 89,102 Food Stores 102,478 106,929 113,584 108,895 112,665 122,367 134,383 129,670 125,326 102,265 Apparel Stores 13,550 14,138 15,018 13,380 15,995 16,528 17,077 16,080 15,980 10,921 Auto Dealers and Supplies 86,793 90,563 96,199 76,513 91,855 90,004 97,536 94,005 89,250 238,577 Service Stations 53,276 55,590 59,050 50,907 66,208 58,032 50,997 51,592 61,102 44,970 Other Retail Stores 159,665 166,600 176,969 148,224 140,420 138,145 131,621 122,975 115,389 83,500 All Other Outlets 171,861 179,326 190,487 161,117 166,791 143,070 135,790 136,807 134,947 140,945 Total $ 700,443 $ 730,864 $ 776,353 $ 659,628 $ 723,183 $ 686,363 $ 679,920 $ 651,158 $ 638,431 $ 710,280 * Categories of sales activity, and amounts displayed for the current reporting period are estimated based on prior years' activity.

Calendar Year
Calendar Year
Calendar Year

CITY OF SEBASTOPOL

TAXABLE SALES BY CATEGORY

LAST TEN CALENDAR YEARS (IN THOUSANDS OF DOLLARS)
Calendar Year
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Special Finance Lease- Finance
Fiscal Assessment Purchase CEC Leaseback Installment Purchase Year Bonds Agreements Loan Agreements Total2
Agreement Agreements
2014 $ 205,000 $ 2,415,429 $ - $ - $ 2,620,429 $ 1,200,000 $ 1,150,336 2015 185,000 2,273,334 - 2,458,334 1,160,118 1,130,420
2016 160,000 2,075,657 - - 2,235,657 1,118,601 1,147,458 2017 140,000 1,850,529 - - 1,990,529 1,075,382 990,710
2018 115,000 1,625,911 - - 1,740,911 1,030,391 859,552
2019 90,000 1,400,395 - - 1,490,395 983,555 737,003
2020 65,000 1,173,640 - - 1,238,640 - 627,380
2021 35,000 1,126,307 - 933,133 2,094,440 - 3,812,582
2022 - 1,050,637 - 710,239 1,760,876 - 3,559,254
2023 - 985,875 - 377,735 1,363,610 - 3,330,963
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 Business-Type Activities
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Lease- Refunding State Total Percentage
Leaseback Loan Payable Drinking CEC Primary of Personal Per Agreements Truist Water Loan Loan Total2
Government Income1 Capita1
$ - $ - $ 142,819 $ - $ 2,493,155 $ 5,113,584 1.97% 686 - - 170,415 - 2,460,953 3,761,788 1.42% 500
- - 249,339 - 2,515,398 3,912,195 1.38% 516
- - 148,328 - 2,214,420 3,353,458 1.10% 435
- - 98,863 - 1,988,806 2,947,221 0.97% 382
- - 75,481 - 1,796,039 2,608,523 0.84% 337
- 1,019,462 - - 1,646,842 3,293,684 1.00% 430
487,375 955,734 - - 5,255,691 10,511,382 2.83% 1,404
365,560 891,079 - - 4,815,893 9,631,786 2.27% 1,311
245,041 825,058 - - 4,401,062 8,802,124 1.87% 1,207
Business-Type Activities
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Percentage of
Percentage Total Taxable
Fiscal of Personal Assessed Per
Year Total Income1 Value2 Capita1
2015 $ - N/A N/A N/A
2016 - N/A N/A N/A
2017 - N/A N/A N/A
2018 - N/A N/A N/A
2019 - N/A N/A N/A
2020 - N/A N/A N/A
2021 - N/A N/A N/A
2022 - N/A N/A N/A
2023 - N/A N/A N/A
2024 - N/A 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
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City's
Share of
Total Debt Percent Debt as of
June 30, 2024 Applicable1June 30, 2024
OVERLAPPING TAX AND ASSESSMENT DEBT:

Sonoma County Joint Community College District $ 367,115,000 1.425% $ 5,231,389 West Sonoma County Union High School District 78,536,954 13.387% 10,513,742 Sebastopol Union School District 20,664,563 58.766% 12,143,737 Twin Hills Union Shool District 2,265,066 0.697% 15,788 Palm Drive Healthcare District 2,060,232 12.540% 258,353 Palm Drive Healthcare District Parcel Tax Obligations 9,225,906 12.540% 1,156,929 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 29,319,937
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Sonoma County Certificates of Participation $ 4,920,000 1.435% 70,602 $ Sonoma County Pension Obligation Bonds 183,880,000 1.435% 2,638,678 Sonoma County Office of Education Certificates of Participation 2,637,891 1.435% 37,854 West Sonoma County Union High School District General Fund Obligations 819,510 13.387% 109,708 Sebastopol Union School District Certificates of Participation 139,826 58.766% 82,170 Twin Hills Union School District Certificates of Participation 118,528 0.697% 826 City of Sebastopol Obligations 1,363,610 100.000% 1,363,610 TOTAL DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 4,303,448 COMBINED TOTAL DEBT $ 33,623,385
TOTAL DIRECT DEBT $ 1,363,610
TOTAL OVERLAPPING DEBT 32,259,775
COMBINED TOTAL DEBT $ 33,623,385 2
1 The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value.

Applicable percentages were estimated by determinating the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. 2 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded lease obligations RATIOS TO 2023-24 ASSESSED VALUATION:

Total Overlapping Tax and Assessment Debt 1.78%
Combined Direct Debt 0.08%
Combined Total Debt 2.04%

CITY OF SEBASTOPOL

DIRECT AND OVERLAPPING DEBT GOVERNMENTAL ACTIVITIES DEBT AS OF JUNE 30, 2024
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2015 2016 2017 2018
Total assessed value of all real
and personal property $ 1,064,059,320 $ 1,136,043,498 $ 1,195,272,022 $ 1,254,015,048 Debt limit percentage 3.75% 3.75% 3.75% 3.75%
Total debt limit 39,902,225 42,601,631 44,822,701 47,025,564 Amount applicable to debt limit 2,620,429 2,458,334 - 1,990,529 Legal debt margin $ 37,281,796 $ 40,143,297 $ 44,822,701 $ 45,035,035 Total net debt applicable to the limit as a
percentage of debt limit 6.57% 5.77% 0.00% 4.23%
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

CITY OF SEBASTOPOL

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
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City Council Meeting Packet of February 4, 2025

2019 2020 2021 2022 2023 2024
$ 1,293,160,893 $ 1,346,424,183 $ 1,396,730,880 $ 1,442,646,754 $ 1,519,838,181 $ 1,594,670,072

3.75% 3.75% 3.75% 3.75% 3.75% 3.75%
48,493,533 50,490,907 52,377,408 54,099,253 56,993,932 59,800,128 1,740,911 1,490,395 1,238,640 2,059,440 1,760,876 1,363,610 $ 46,752,622 $ 49,000,512 $ 51,138,768 $ 52,039,813 $ 55,233,056 $ 58,436,518

3.59% 2.95% 2.36% 3.81% 3.09% 2.28%
Fiscal year
149 Agenda Item Number 5
Agenda Item Number 5
City Council Meeting Packet of February 4, 2025

Fiscal Special
Year Assessments Principal Interest Coverage
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
2022 33,131 30,000 6,596 0.91
2023 - 35,000 2,293 0.00
2024 - - - N/A
Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.

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

CITY OF SEBASTOPOL

PLEDGED REVENUE COVERAGE

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
150 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

Adjusted Net
Fiscal Operating Operating Available
Year Revenue Expenses Revenue Principal Interest Coverage 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
2022 2,519,592 (2,300,500) 219,092 133,663 24,535 1.38
2023 2,353,715 (2,212,048) 141,667 277,668 42,579 0.44
2024 2,499,599 (2,622,128) (122,529) 261,527 56,599 (0.39) Note: There were no pledges of non-general obligation debt from 2013 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, Refunding Lease Agreement, and Finance Purchase Agreements

CITY OF SEBASTOPOL

PLEDGED REVENUE COVERAGE

PROPRIETARY FUNDS

LAST TEN FISCAL YEARS
Installment Sale Agreement, State Drinking Water Loan,
151 Agenda Item Number 5
Agenda Item Number 5
City Council Meeting Packet of February 4, 2025

CITY OF SEBASTOPOL

DEMOGRAPHIC STATISTICS

LAST TEN FISCAL YEARS
% of Pop 25+ % of Pop 25+
Fiscal Total Per with High with Bachelors Unemployment Median Year Population (in thousands) Capita School Degree Degree Rate Age 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% 20.7% 47.60
2021 7,657 330,501 43,163 95.50% 44.90% 11.9% 46.80
2022 7,489 351,291 49,578 96.10% 44.60% 2.6% 48.50
2023 7,348 424,918 57,828 95.60% 47.00% 3.6% 49.10
2024 7,295 471,959 64,696 96.70% 48.50% 3.5% 48.80
Source:

Population: California State Department of Finance. Unemployment Data: California Employment Development Department.

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 Personal Income
152 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

Percent of Percent of
Total Total
Employer Employees Employment Rank Employees Employment Rank West Sonoma County Union High School District 180 4.74% 1 N/A N/A N/A Apple Valley Post Acute Rehab 173 4.55% 2 N/A N/A N/A
Sonoma Specialty Hospital 169 4.45% 3 N/A N/A N/A
Traditional Medicinals 145 3.82% 4 N/A N/A N/A
Safeway 114 3.00% 5 N/A N/A N/A
Whole Foods Market 96 2.53% 6 N/A N/A N/A
Gravenstein Union District 93 2.45% 7 N/A N/A N/A
TLC Child and Family Services 92 2.42% 8 N/A N/A N/A
City of Sebastopol** 90 2.37% 9 N/A N/A N/A
Andy's Produce Markets 70 1.84% 10 N/A N/A N/A
1,222 32.16%
Source: MuniServices, LLC/Avenu Insights & Analytics

CITY OF SEBASTOPOL

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
Fiscal Year 2024 Fiscal Year 2015
153 Agenda Item Number 5
Agenda Item Number 5
City Council Meeting Packet of February 4, 2025

2017 2018 2019 2020 2021 2022 2023 2024
Governmental Activities
General Government
City Council 6.00 6.00 6.00 5.00 6.00 6.00 6.00 5.00
City Manager 0.75 0.75 0.75 0.75 0.75 0.75 0.75 1.00
City Attorney 0.25 0.25 0.25 0.25 0.25 0.25 0.25 -
City Clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Finance 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00
Building Inspection 1.50 1.50 1.50 0.50 1.50 0.50 0.50 1.50 Planning 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Public Safety
Police 34.75 34.75 34.75 24.75 25.75 23.00 25.00 23.00
Fire 33.50 33.50 35.50 34.50 35.50 35.50 34.50 3.50
Public Works and facilities
Administration 2.75 2.75 2.75 2.75 2.75 2.75 2.75 2.75
Water 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00
Laborer 4.00 4.00 4.00 3.00 3.00 3.00 3.00 3.00
Engineering 1.75 1.75 1.75 1.75 1.75 1.75 1.75 2.25
Maintenance 4.00 6.00 6.00 7.00 7.00 7.00 7.00 6.00
Total 98.25 100.25 102.25 89.25 93.25 89.50 90.50 58.00 * 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
154 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Building
Residential Building Permits 302 432 393 278 300 290 323 330 360 415 Land use entitlement applications 54 32 25 25 25 25 25 30 57 33 Police
Citations issued n/a n/a 872 1,156 906 2,121 1,122 1,224 1,177 1,128 Arrests made 823 623 669 581 519 468 329 299 297 362
Requests for services 7,801 7,830 7,703 7,845 8,276 8,251 6,894 7,743 12,384 12,674 Fire
Fire responses 1,071 1,056 1,150 1,190 1,275 1,200 1,189 1,250 1,325 1,595 Fire Inspections 200 300 350 375 400 380 375 390 280 200 Area served (sq. miles) 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.80 Public Works
Encroachment permits 117 98 59 65 74 86 95 60 61 59
Capital improvement projects n/a n/a n/a 6 3 3 6 1 2 6
Park acres overseen 96.00 96.00 97.70 97.70 97.70 97.70 97.70 97.70 98.70 98.70 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 271 325 120 135 275 120 300
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 2,550 2,470 2,682 2,503 2,451 2,686 2,560 2,506 2,767 2,549 Active Commerical Accounts 477 335 473 381 455 343 335 364 379 359 Average Daily Water Consumption 758,904 783,561 838,673 821,096 782,192 817,534 872,883 732,960 718,416 898,063 Ground Storage Capacity (gallons) $7.5m $7.5m $7.5m $7.5m $7.5m 7.5m 7.5m 7.5m 7.5m 7.5m Elevated Storage Capactiy (gallons) 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
0 - no
elevated
tanks
0 - no
elevated
tanks
Ground Water Production Capactiy
(1000 gallons per day) 3,226 3,226 3,226 3,226 3,312 3,312 3,312 3,312 3,312,000 3,312,000 Pump Capacity (gallons per minute) 2,240 2,240 2,240 2,240 2,300 2,300 2,300 2,300 2,300 2,300 Waste Water Treatment Capacity
(1000 gallons per day) 840 840 840 840 840 840 840 840 840,000 840,000 Source: City of Sebastopol Finance Department
Fiscal Year

CITY OF SEBASTOPOL

OPERATING INDICATORS

BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
155 Agenda Item Number 5
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City Council Meeting Packet of February 4, 2025

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Police
Stations 1 1 1 1 1 1 1 1 1 1
Fire
Stations 1 1 1 1 1 1 1 1 1 1
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 2 2 2 2 2 2 2 2 2 2
Parks and Recreation
Office buildings 4 4 4 4 4 4 4 4 4 4
Park acreage 96 96 98 97.7 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 1 1 1 1 1 1 1 1 1 1
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 450 450 450 450 450 450 45 450 450
Storage capacity (million gallons) 7.50 7.50 7.50 7.50 7.50 7.50 7.5 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
156 Agenda Item Number 5
Agenda Item Number 5
City Council Meeting Packet of February 4, 2025