South San Francisco City Council
February 8, 2023

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022

CITY OF SOUTH SAN FRANCISCO

CALIFORNIA
Attachment 1

CITY OF SOUTH SAN FRANCISCO, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
Prepared by:

Department of Finance
This Page Left Intentionally Blank

CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................... i Letter of Transmittal ......................................................................................................................................... v Certificate of Achievement for Excellence in Financial Reporting ............................................................... xii Organization Chart ......................................................................................................................................... xiii City Council and Directory of City Officials ................................................................................................ xiv

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

Government-wide Financial Statements:

Statement of Net Position .................................................................................................................. 29 Statement of Activities ...................................................................................................................... 30 Fund Financial Statements:

Major Governmental Funds:

Balance Sheet ................................................................................................................................ 36 Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 38 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 40 Reconciliation of the Net Change in Fund Balances Total Governmental Funds with the Statement of Activities ........................................................................................................ 42 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Budgetary Basis:

General Fund ....................................................................................................................... 43 Low and Moderate Income Housing Assets ....................................................................... 44 i

CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION (Continued)
Major Proprietary Funds:

Statement of Net Position .............................................................................................................. 46 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 47 Statement of Cash Flows ............................................................................................................... 48 Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................................. 50 Statement of Changes in Fiduciary Net Position .......................................................................... 51 Notes to Basic Financial Statements ...................................................................................................... 53 Required Supplementary Information:

Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ............................................................................................................ 106 Schedule of Contributions – Miscellaneous Plan ........................................................................ 107 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ...................... 108 Schedule of Contributions – Safety Plan ..................................................................................... 109 Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................... 110 Schedule of Contributions – Retiree Healthcare OPEB Plan ...................................................... 111 Notes to Schedule of Employer Contributions ............................................................................ 111 Supplementary Information:

General Fund:

Combining Balance Sheets ............................................................................................................. 116 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 117 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - (Non GAAP Legal Basis) ........................................... 118 ii

CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION (Continued)
Non-major Governmental Funds:

Combining Balance Sheet ............................................................................................................... 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 128 Budgeted Non-major Government Funds:

Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ................................................................................... 132 Internal Service Funds:

Combining Statement of Net Position ............................................................................................ 138 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 139 Combining Statement of Cash Flows ............................................................................................. 140 Custodial Funds:

Combining Statement of Net Position ............................................................................................ 142 Combining Statement of Changes in Net Position ......................................................................... 143

STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years .................................................................... 147 Changes in Net Position – Last Ten Fiscal Years .......................................................................... 148 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 152 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 154 Assessed Value of Taxable Property – Last Ten Fiscal Years ...................................................... 156 Direct and Overlapping Governments – Property Tax Rates Last Ten Fiscal Years ................................................................................................................ 157 Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 159 Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 160 iii

CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
STATISTICAL SECTION (Continued)
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 161 Computation of Direct and Overlapping Debt ............................................................................... 162 Computation of Legal Bonded Debt Margin ................................................................................. 163 Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 164 Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Seven Fiscal Years............ 165 Redevelopment Pledged Revenue Coverage – Last Nine Fiscal Years ......................................... 166 Demographic and Economic Statistics – Last Ten Fiscal Years ................................................... 167 Principal Employers – Current Year and Nine Years Ago ............................................................ 168 Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 169 Operating Indicators by Function/Program – Last Eight Fiscal Years .......................................... 170 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 171 Miscellaneous Information – Last Four Fiscal Years .................................................................... 172 iv
December 28, 2022
Honorable Mayor and Members
of the City Council
City of South San Francisco
South San Francisco, California
We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for the City of South San Francisco (the City) for the fiscal year (FY) ended June 30, 2022. The City of South San Francisco is required to publish a complete set of financial statements presented in conformance with generally accepted accounting principles (GAAP) and audited by an independent, certified public accounting firm.

This report is published to fulfill this requirement for the fiscal year ending June 30, 2022.

The report presents the finances of the City of South San Francisco. Management assumes full responsibility for the completeness and fairness of the information presented in this report. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City.

All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included.

This report consists of management’s representations concerning the finances of the City. To provide a reasonable basis for making these representations, management established a comprehensive internal control framework designed to both protect the City’s assets from loss, theft, or misuse, compiled sufficient reliable information for the preparation of the City’s financial statements in conformity with the Generally Accepted Accounting Principles (GAAP), and complied with applicable laws and regulations.

CITY COUNCIL 2022
FLOR NICOLAS, MAYOR (DIST. 3)
MARK NAGALES, VICE MAYOR (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER (DIST. 5)

MIKE FUTRELL, CITY MANAGER
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The City contracted with Maze & Associates (Maze), a public accounting firm licensed to perform local government audits in California, to complete the annual audit. Maze concluded that the financial statements present fairly the respective financial position of the government activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, and the respective changes in financial position, and where applicable, cash flows for the year ended June 30, 2022, in accordance with GAAP. This is a favorable conclusion and is commonly referred to as an unmodified opinion.

The independent audit of the City’s financial statements is part of a broader, federally mandated “Single Audit” designed to meet the needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the City’s financial statements, but also on the City’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. Maze will issue the Single Audit in March of 2023.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statement in the form of the Management’s Discussion & Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A is located immediately following the report of the independent auditor in the financial section.

CITY PROFILE
The City of South San Francisco proudly remains the Industrial City, a reflection of its steel mill and shipbuilding past, redefined to reflect the innovative, entrepreneurial, and industrious spirit which has made South San Francisco the Biotech Capital of the World, with over 250 active biotech companies and growing.

The City of South San Francisco encompasses approximately 9.5 square miles and has a population of 66,105. The City employs approximately 500 full-time regular employees and is a full-service city which includes public safety (police, fire and paramedics), libraries, parks, cultural and recreational activities, senior citizen services, public works, public improvements, engineering, planning, building regulation, economic development, drainage, street lighting, and general administrative services. Sewer service, downtown parking operations, and storm water management are accounted for in the City’s enterprise funds. The Conference Center Authority is included in the financial statements by discrete presentation – that is, the Authority’s financial data is reported in a column separate from the financial data of the City. Water and solid waste services are provided by private entities.
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South San Francisco was incorporated and became a general law city of the State of California on September 19, 1908. The form of government is the CouncilManager plan. Each Councilmember serves a term of four years, with a rotating Mayor chosen by majority vote of the Council, for a term of one year. The Council appoints the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City and appointing department directors.

The offices of City Clerk and City Treasurer are elected and will remain at-large.

The incumbent City Clerk, Rosa Govea Acosta, and City Treasurer, Frank Risso, were elected for another term in the November 2022 election.

This report includes all financial activities of the City of South San Francisco, including financial information for the City, as the primary government, and for its component units, for which the City is considered financially accountable. The blended component units include the City of South San Francisco Capital Improvements Financing Authority, the Parking Authority of the City of South San Francisco, and the City of South San Francisco Public Facilities Financing Authority. The South San Francisco Conference Center is a discretely presented component unit and is included because of the significance of its governing, operational, and/or financial relationships with the City. The Successor Agency that was created due to the Redevelopment Agency dissolution is also included in this report.

ASSESSING THE CITY’S ECONOMIC CONDITION
The City of South San Francisco continued to demonstrate its resilience and strength during Fiscal Year (FY) 2021-22 following a particularly challenging prior year in which the COVID-19 pandemic took hold and impacted all sectors of society and the economy at the national, state and local levels. Restrictions on travel continued to be loosened as FY2021-22 began, bringing about a substantial recovery in the year in Transient Occupancy Tax (TOT) to above 70% of prepandemic levels, up from 39% in the prior year, as well as Commercial Parking Tax collected from San Francisco airport and the surrounding hotels. The upward trend in TOT went hand-in-hand with a strong recovery in sales tax revenue as shopping and spending patterns also continued to return to normal. This recovery and various revenue streams enabled the City to re-open and expand classes and services to residents and subsequently unfreeze employee vacancies, thereby driving an increase in expenditures.
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The resilience of local businesses and residents was bolstered by assistance programs provided by the City during the COVID-19 pandemic. These continued into FY2021-22, with new ones beginning during the year, and included the Guaranteed Basic Income pilot program (utilizing American Rescue Plan Act funding) whereby 160 City residents received $500 per month for a year, the Rental Assistance program for residential tenants facing pandemic-related economic hardship, the opening of the Economic Advancement Center on Grand Avenue to assist individuals with job placement, training and business start-up, and creation of the Business Façade and Tenant Improvement program to help local businesses improve storefronts and American Disabilities Act (ADA) compliance.

Development within the City continued apace during FY2021-22 with multiple new housing units coming online and new developments added to the pipeline.

Significant work continued through the year with the biotech development at Oyster Point, and the Southline project to develop a 28-acre site for office space and biotech research and development on the City’s southern border gained considerable traction (target completion in 2024).

The City further demonstrated its strong emergence from the pandemic through its ambitious Capital Improvement Plan (CIP) with twenty new projects budgeted in the fiscal year alone including the $78 million bond-funded portion of the Community Civic Campus construction project, the $24 million bond-funded street rehabilitation projects and the $2 million bond-funded solar roof at the City’s Corporation Yard. A capital project to replace the City pool complex was also included in the CIP plan, the outreach and design of which began during the year.

The bonds to fund the new pool complex were issued in June 2022 in readiness for the forthcoming construction phase. Also, during FY2021-22, the new Police Station and new Caltrain Station were both opened and became fully operational, and work on the Colma Creek Storm Water capture project and the Sports Fields, both located at Orange Memorial Park, neared completion by year end.

In June 2022, the City issued its third tranche of lease revenue bonds, taking advantage of a very favorable interest rate environment. The bond proceeds will fund multiple CIP projects, including the aforementioned city pool complex (Aquatic Center), and replacement of the sports fields, playground and Colma Creek bridges at Orange Memorial Park.
viii
The General Fund is the main fund of the City, accounting for principal revenues including taxes, licenses and permits, charges for services, grants and interest income, as well as expenditures related to delivery of public services by City departments such as Police, Fire, Public Works, Parks and Recreation, Library and Administrative Services. Performance of this fund is viewed as the main barometer of the financial health of the City. Compared to the prior year, FY 2021-22 General Fund revenues (excluding transfers in from other funds and special items) increased by $17.4 million, or 14.1%. This significant increase is mainly driven by greater TOT, sales tax, commercial parking tax and charges for service revenues, all as a result of the City emerging and recovering from the COVID-19 pandemic.

In November 2015, voters in the City passed Measure W, which increased the sales tax rate within the City by 0.50%. The tax is deposited into the City's General Fund and will be used to pay for City services. This tax revenue is primarily used to pay the debt on bonds or other financings to accelerate projects. In February 2020, the City issued $43.9 million of lease revenue bonds to finance the design and construction of a new Police facility which became fully operational in January 2022. In June 2021, the City issued $86.4 million in lease revenue bonds for the construction of a new Civic Center Campus, installation of a solar roof at the City’s Corporation Yard and funding of the City’s Road Rehabilitation program.

Furthermore, in June 2022, the City issued $65.4 million in lease revenue bonds to fund the construction of a new Aquatic Center and ballfields at Orange Memorial Park, and the replacement of a playground and two bridges over Colma Creek, also at Orange Memorial Park.

MAJOR CITY SPONSORED INITIATIVES
The City completed the following major construction projects in FY 2021-22, improving the City’s infrastructure, facilities and enhanced business processes with contemporary technology:
• Pavement Management Program – 2020 Surface Seal & Rehab projects • Pump station #2 Upgrade
• Linden Avenue Street Improvements – Aspen to Miller
• Signalize Commercial and Spruce Intersection
• WQCP Plant-wide Industrial re-coat project
• Orange Memorial Park Storm Water Capture project
• New Police Operations Center
• Caltrain Station
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FINANCIAL INFORMATION
The City Council is required to adopt a final budget by passing a budget resolution no later than June 30th, following a public hearing process. This annual budget serves as the foundation for the City’s financial planning and control. The budget is prepared by fund, function and department. The legal level of budgetary control is at the fund level. The City Manager is authorized to transfer budgeted amounts between departments and line items within any fund. Any revisions that alter the total expenditures of any fund must be approved by the City Council. Transfers between funds must be approved by the City Council. At the end of the fiscal year, encumbered appropriations are carried forward and become part of the following year’s budget while appropriations that have not been encumbered lapse, unless otherwise authorized by the City Council and the City Manager.

In developing and appraising the City’s accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable but not absolute assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets; and (3) transactions being properly executed in accordance with management’s authorization.

The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management.

Basic characteristics of sound internal accounting control include segregation of accounting duties, approval of accounting transactions, and regular reconciliation of detail and control records.

All internal control evaluations occur within this framework. We believe that the City’s internal accounting controls adequately safeguard assets and provide reasonable assurances of proper recording of financial transactions.

In February 2020, S&P Global Ratings assigned an issuer credit rating of triple A (“AAA”) to the City. AAA is the highest rating possible and is important as higher ratings generally results in lower borrowing costs and the City was able to benefit from this in its FY 2020-21 bond issuance. S&P re-affirmed this rating prior to the FY 2021-22 bond issuance. The AAA rating is a good indicator of the City's strong financial position, solid executive management, fiscally sound policies and practices, and responsible budgetary performance.

The City’s Reserve Policy is aligned with the Government Finance Officers Association (GFOA) best practices recommendation for reserves, setting aside 15- 20 percent of operating revenues.
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OTHER INFORMATION
Award
The City’s ACFR for the fiscal year ended June 30, 2021, received a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. The award signified the report’s attainment of easily readable and efficiently organized content and satisfaction of generally accepted accounting principles and legal requirements. The award is valid for a period of one year only.

However, the City believes that this current report continues to conform to program eligibility requirements.

Acknowledgments
The preparation of the ACFR was made possible by the dedicated services of the entire staff of the Finance Department and our auditors. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. Special thanks are extended to Finance Services Managers, Paul Harris and Jennifer Clemente, and Senior Accountant Steven Lew for their commitment and diligence in the preparation of this document.

Furthermore, we would like to thank the City Council for its leadership and commitment to ensuring the long-term fiscal health of the City.

Respectfully submitted,
____________________________ __________________________ Karen Chang Mike Futrell
Director of Finance City Manager
obo
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I, DocuSigned by:
~ CB~
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of South San Francisco
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xii
Citizens of South San Francisco
City Council
City Clerk
Rosa Govea Acosta
City Treasurer
Frank Risso
City Manager
Mike Futrell
City Attorney
Sky Woodruff
Assistant to the City
Manager
Christina Fernandez
Administrative Departments Operating Departments
Fire Chief
Jess Magallanes
Public Works Director
Eunejune Kim
Library Director
Valerie Sommer
Econ. & Comm. Development
Director
Nell Selander
Chief of Police
Scott Campbell
Human Resources Director
Leah Lockhart
Finance Director
Karen Chang
Assistant City Manager/Chief
Sustainability Officer
Sharon Ranals
Communications Director
Leslie Arroyo
Mark Nagales (District 2), Mayor
Buenaflor Nicolas (AT LARGE), Vice Mayor
Mark Addiego (AT LARGE), Member
James Coleman (District 4), Member
Eddie Flores (AT LARGE), Member
Information Technology
Director
Tony Barrera
Capital Projects Director
Jacob Gilchrist
Dep. Capital Projects Director
Philip Vitale Parks and Recreation
Director
Greg Mediati
xiii
City Council & Directory of Officials*
City Council
Mark Nagales (District 2) Mayor
Buenaflor Nicolas (AT LARGE) Vice Mayor
Mark Addiego (AT LARGE) Councilmember
James Coleman (District 4) Councilmember
Eddie Flores (AT LARGE)   Councilmember
Elected Officials
Rosa Govea Acosta City Clerk
Frank Risso City Treasurer
Appointed Officials
Mike Futrell   City Manager
Sharon Ranals   Assistant City Manager
Karen Chang   Finance Director
Leslie Arroyo   Communications Director
Scott Campbell   Chief of Police
Tony Barrera   Information Technology Director
Jacob Gilchrist   Capital Projects Director
Nell Selander   Deputy Economic & Community Development Director Leah Lockhart   Human Resources Director
Jess Magallanes   Fire Chief
Eunejune Kim   Public Works Director
Valerie Sommer  Library Director
Greg Mediati   Parks & Recreation Director
Budget Subcommittee
Mark Addiego
Buenaflor Nicolas
*As of October 31, 2022
xiv
INDEPENDENT AUDITOR’S REPORT
Honorable Members of the City Council
City of South San Francisco, 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 South San Francisco (City), California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

We did not audit the discretely presented component unit financial statements of the South San Francisco Conference Center Authority (Authority), which represents 0.64%, 0.82%, and 1.08%, respectively, of the assets, net position, and revenue of the primary government. Those financial statements were audited by other auditors, whose report thereon has been furnished to us and our opinion, insofar as it relates to the amounts included for the Authority, is based solely on the report of the other auditors.

In our opinion, based on our audit and report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
1 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.

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 opinion. 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, individually or in the aggregate, they could reasonably be expected to 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.

Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 87, Leases, which became effective during the year ended June 30, 2022 and had material effects on the financial statements as discussed in Note 1T to the financial statements.

The emphasis of this matter does not constitute a modification to our opinions.

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

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

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

3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
December 27, 2022
4 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
The Management’s Discussion and Analysis (MD&A) provides an overview of City of South San Francisco’s financial activities and fiscal performance for the year ended June 30, 2022. Please read this in conjunction with the accompanying Transmittal Letter and Basic Financial Statements to obtain a complete picture of the City’s financial condition.

FINANCIAL HIGHLIGHTS
 Total Net Position for Governmental activities in FY 2021-22 increased by $64.7 million, or

19.5%, from $332.1 million in the prior year, to $396.8 million. The increase is primarily due to further investment in City assets through bond issuance, an increase in cash and investments due to stronger revenues in the year, as well as a greater restricted cash balance due to the 2022A bond issuance prior to year-end. The growth in assets of $146.5 million is partially offset by a $66.3 million increase in long-term debt liabilities but this offset is reduced by lower “other liabilities” ($47.6 million lower than prior year) due to a significant drop in the net pension liability at year-end.
 Total Net Position for Business-Type activities in FY 2021-22 increased by $7.1 million, or

5.4%, from $130.8 million in the prior year, to $137.9 million. The growth in Net Position is due to a $10 million increase in capital assets due to construction work underway at the City’s Water Quality Control Plant (WQCP), lower accounts payable at year-end and a drop in the net pension liability. This is partially offset by lower cash and investments, and accounts receivable balances at year-end.
 City-wide Net Pension Liability to CalPERS for FY 2021-22 decreased by $60.9 million, or

29.7%, from $205.3 million in the prior year to $144.4 million. This significant decrease in liability was driven by revised actuarial valuations from CalPERS taking into account member contributions and strong investment earnings in FY2020-21.  City-wide cash and investments at year end increased $5.5 million, or 2.1%, from $259.3 million in the prior year to $264.8 million. This reflects the underlying strength in the local economy as the City continued to rebound from the impacts of the COVID-19 pandemic.  Revenues from Governmental Activities (excluding transfers and special items) increased by $37.7 million, or 22.7%, to $203.9 million in FY 2021-22 from $166.2 million in the prior year.

Revenues from Business-Type Activities (excluding transfers and special items) partially offset this with a decrease of $5.4 million, or 13.3%, to $35.2 million in FY2021-22 from $40.6 million in the prior year.
 Expenses from Governmental Activities (excluding transfers and special items) increased by $2.4 million, or 1.8%, to $134.8 million in FY2021-22 from $132.4 million in the prior year due to a greater amount of interest paid on debt (due to additional bonds having been issued in the prior year). Expenses from Business-Type Activities decreased slightly by $0.2 million, or 0.7%, to $28.7 million compared to $28.9 million in the prior year.

5 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
 Property tax revenues categorized under Governmental Activities dropped in FY 2021-22 by $1.6 million, or 3.8%, to $40 million from $41.6 million in the prior year. This was primarily due to a reduction in the amount of tax received from the Educational Revenue Augmentation Fund (ERAF) which has historically been a volatile revenue source related to the split of basic and non-basic aid schools in the county of San Mateo.
 Sales tax increased by $5.1 million, or 15.5% to $38.1 million in FY 2021-22 from $33.0 million in the prior year. This represents the return to normal spending patterns for the local population as the City continued its recovery during the FY 2021-22 from the COVID-19 pandemic.  Transient Occupancy Tax (“TOT”) was the most dramatically impacted revenue category during the height of the pandemic due to the restrictions on travel and shelter-in-place orders. By the beginning of FY 2021-22, these had largely been removed allowing this revenue category to rebound significantly. TOT revenue almost doubled to $12.1 million, an increase of $5.4 million, or 80.6%, from $6.7 million in the prior year. Total TOT receipts for the year rose to approximately 70% of pre-pandemic levels indicating there is still some way to go in the recovery.
 Revenue from Property Taxes in Lieu, otherwise known as the California Vehicle Licensing Fee (VLF), more than doubled to $12.0 million in FY 2021-22 from $4.9 million in the prior year, an increase of $7.1 million or 144.9%. This is a volatile revenue source that is difficult to predict and the increase was partially due to a change in the ratio of basic aid to non-basic aid school districts in San Mateo County which affects the availability of VLF. Part of the variance is due to the City being allocated $3.7 million in additional VLF in FY2021-22 as a result of a countywide reimbursement from the state for a VLF shortfall in the prior year.  Total revenues from the City’s Sewer Enterprise decreased $5.4 million, or 16.0% to $28.4 million from $33.8 million in the prior year. This was largely due to lower sewer charge revenues which, for FY2021-22, are based on the 2020 calendar year. Commercial water usage dropped considerably during 2020 as workers remained at home during the pandemic and reduced water usage means less sewer effluent volume on which commercial businesses are charged. Water conservation drives by many businesses further led to reduced overall water usage and resulting sewer effluent volumes. The City’s Parking Enterprise experienced a $0.2 million, or 30.0%, increase in revenues to $1.0 million in FY2021-22 compared to $0.8 million in the prior year due to a greater level of parking activity as shoppers returned to the City following removal of pandemic-related restrictions.

6 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This Annual Comprehensive Financial Report (ACFR) is in six parts:
1) The Introductory Section, which includes the Transmittal Letter and general information; 2) Management’s Discussion and Analysis (this part);
3) The Basic Financial Statements, which include the Government-wide and the Fund Financial Statements, along with the notes accompanying these statements; 4) Required Supplementary Information and the accompanying notes; 5) Other Supplementary Information including combining statements for non-major governmental funds, internal service funds, custodial funds and other budgetary information; and
6) The Statistical Section.

Basic Financial Statements
The Basic Financial Statements are comprised of the City-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and financial position.

The City-wide Financial Statements provide a longer-term view of the City’s activities as a whole, and consist of the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to the basis used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each of the City’s programs. The Statement of Activities provides a detailed explanation of the change in net position for the year.

All the amounts in the Statement of Net Position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two distinct activities of the City.

The Fund Financial Statements report the City’s operations in more detail than the government-wide statements. The Governmental Fund Financial Statements focus primarily on the short-term activities of the City’s General Fund and other Major Funds and measure only current revenues, expenditures, and fund balances; they exclude capital assets, long-term debt and other long-term amounts. The Proprietary Fund Financial Statements focus on the Business-Type “enterprises” of the City, i.e. activities that are accounted for in a similar way to private sector organizations using the full accrual basis, thereby including both short-term and long-term elements.

7 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Major Funds account for the major financial activities of the City and are presented individually, while the activities of non-Major funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds.

The Fiduciary Fund Financial Statements provide financial information about the activities of NonObligated Assessment Districts, for which the City acts solely as agent.

Note 1 to the Basic Financial Statements provides a summary of the City’s significant accounting policies, fund categories, and fund types.

City-wide Financial Statements
The Statement of Net Position and the Statement of Activities present information about the following:
 Governmental activities - All of the City’s basic services are considered to be governmental activities, including General Government, Fire, Public Works, Parks and Recreation, Library, and Economic and Community Development. These services are supported by general City revenues such as taxes and by specific program revenues from grants, contributions and fees.

The City’s Governmental Activities also include the City of South San Francisco Capital Improvements Financing Authority and South San Francisco Public Facilities Financing Authority, as the City Council also governs these entities.  Business-Type Activities - All the City’s enterprise activities are reported here, including Wastewater treatment (or Sewer), Parking, and Storm Water management. Unlike Governmental services, user fees fully support most of these services.  Component Unit - The City of South San Francisco Conference Center Authority comprises the component unit. The Authority serves the City and other interests and it has a governing body separate from the City Council.

City-wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole and account for revenues when due and expenses when incurred.
8 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called Major Funds. Each Major Fund is presented individually, with all nonMajor Funds summarized and presented only in a single column. Subordinate schedules present the detail of these non-Major funds. Major Funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of City activities. Fund Financial Statements include governmental, enterprise and internal service funds as discussed below.

Governmental Fund Financial Statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements.

Enterprise and Internal Service Fund Financial Statements are prepared on the full accrual basis and include all their assets, liabilities and deferred outflows/inflows of resources, current and long-term.

Since the City’s Internal Service Funds provide goods and services only to the City’s governmental and business-type activities, their activities are reported only in total at the fund level. Internal Service Funds may not be Major Funds because their revenues are derived from other City funds.

These revenues are eliminated in the city-wide financial statements and any related profits or losses are returned to the activities which created them, along with any residual net position of the Internal Service Funds.

Comparisons of Budget and Actual financial information are required in the Basic Financial Statements only for the General Fund and other Major Funds that are Special Revenue Funds.

Fiduciary Fund Financial Statements
The City is the agent for certain assessment districts, holding amounts collected from property owners which await transfer to these Districts’ bond trustees. The City’s fiduciary activities are reported in the separate Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City cannot use these assets to finance its own operations.

FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE
The following analyses focus on the net position and changes in the City’s Governmental Activities (Tables 1 through 3, and Chart 1) and Business-Type Activities (Tables 4 and 5), which are presented in the city-wide Statement of Net Position and Statement of Activities. The comparative results for FY 2021-22 are presented versus FY 2020-21. 9 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Governmental Activities
Net position may serve over time as a useful indicator of the City’s financial condition. Table 1 below shows that total assets and deferred outflows of resources exceed the total liabilities and deferred inflows of resources as of June 30, 2022 for Governmental Activities:

Governmental Net Position
Table 1
Governmental Net Position at June 30
(In Millions)
As shown in table 1, the total net position for Governmental Activities increased by $64.7 million in FY 2021-22 compared to the prior year, reflecting significant increases in assets. Cash and investments increased by $10.7 million. Other assets, which includes receivables, properties held for redevelopment, and restricted cash and investments, increased by $53.2 million due to proceeds received from issuance of an additional bond for construction of a new Aquatic Center and various other CIP projects at Orange Memorial Park. Capital assets increased by $82.6 million due to a large increase in Construction-In-Progress related to the new Civic Center Campus and multiple other Capital Improvement Plan (CIP) projects. Pursuant to GASB 75 and GASB 68 requirements, respectively, the City, as in prior years, recognized the Net OPEB liability of $52.3 million and Net Pension Liability of $129.9 million attributable to Governmental Activities.

Increase / (Decrease)
2022 2021 Amount %
Cash and investments 239.8 $     $    229.1 $      10.7 4.7% Other assets 201.9 148.7 53.2 35.8%
Capital assets 465.7 383.1 82.6 21.6%
Total assets 907.4 760.9 146.5 19.3%
Total outflows of resources 28.8 31.2 (2.4) (7.7%)
Total outflow of resources 28.8 31.2 (2.4) (7.7%)
Long‐term debt outstanding 223.8 157.5 66.3 42.1%
Other liabilities 253.4 301.0 (47.6) (15.8%)
Total liabilities 477.2 458.5 18.7 4.1%
Deferred inflows of resources 62.1 1.6 60.5 3781.3%
Total deferred inflow of resources 62.1 1.6 60.5 3781.3% Net position:

Net investment in capital assets 452.7 316.1 136.6 43.2% Restricted 139.0 160.2 (21.2) (13.2%)
Unrestricted (194.9) (144.2) (50.7) 35.2%
Total net position   $    396.8 $    332.1 $      64.7 19.5% 10 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
The following table shows the changes in net position for Governmental Activities:

Table 2
Expense and Program Revenue Comparison in Governmental Activities (In Millions)
Increase / (Decrease)
2022 2021 Amount %
Revenues
Program revenues:

Charges forservices 66.7 $       $      44.9 $      21.8 48.6% Operating grants and contributions          10.9            8.0 2.9 36.3% Capital grants and contributions            3.3            5.5 (2.2) (40.0%) Total program revenues $      80.9 $      58.4 $      22.5 38.5% General revenues:

Taxes:

Property taxes $      40.0 $      41.6 $      (1.6) (3.8%) Sales taxes 38.1 33.0 5.1 15.5%
Transient occupancy taxes 12.1 6.7 5.4 80.6%
Other taxes 11.5 9.1 2.4 26.4%
Property taxes in lieu 12.0 4.9 7.1 144.9%
Investment earnings (6.7) 0.9 (7.6) (844.4%)
Miscellaneous 16.0 11.6 4.4 37.9%
Total general revenues $    123.0 $    107.8 $      15.2 14.1% Total revenues $    203.9 $    166.2 $      37.7 22.7%
Expenses
General government $      20.8 $      19.6 $        1.2 6.1% Fire department 28.5 34.5 (6.0) (17.4%)
Police department 35.7 33.4 2.3 6.9%
Public Works 7.5 7.6 (0.1) (1.3%)
Parks and Recreation 19.5 17.1 2.4 14.0%
Library 6.1 6.3 (0.2) (3.2%)
Economic and Community Development 12.0 11.7 0.3 2.6%
Interest on long‐term debt 4.7 2.2 2.5 113.6%
Total expenses $    134.8 $    132.4 $        2.4 1.8%
Excess / (deficiency) before transfers 69.1 $       $      33.8 $      35.3 104.4% Special Item (3.0) (1.4) (1.6) 114.3%
Transfers (1.4) (5.0) 3.6 (72.0%)
Change in net position 64.7 27.4 37.3 136.1%
Net position ‐ beginning 332.1 304.7 27.4 9.0%
Net position ‐ ending $    396.8 $    332.1 $      64.7 19.5% 11 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
As shown in table 2, total Governmental revenues (excluding transfers and special items) increased by $37.7 million, or 22.7%, compared to the prior year. A significant increase in Charges for Services specifically contributed to the greater revenue – this category accounted for $21.8 million of the increase and largely consists of impact fees such as the Park Land Acquisition Fee, the Park Construction Fee, the East of 101 Traffic Impact Fee and the Childcare Impact Fee. These are fees paid by developers on new development projects within the City and revenue levels can vary depending on the timing of such projects. There was also an increase in revenue, accounted for in Charges for Services, from facility rentals, and childcare and aquatic programs offered by the City during the year mainly due to the City’s recovery from the COVID-19 pandemic. The recovery also gave rise to a $5.4 million increase in TOT and $5.1 million increase in Sales Tax as travel restrictions were removed, hotel occupancy rates increased and consumer spending patterns normalized. An increase in revenue was also seen in Property taxes in lieu ($7.1 million), otherwise known as the California Vehicle Licensing Fee (VLF) due to a change in the ratio of basic aid to non-basic aid school districts in San Mateo County which affects the availability of VLF, and a $3.7 million allocation from the state (distributed by the County) related to a shortfall in VLF in FY2020-

21. Investment earnings fell by $7.6 million to -$6.7 million, compared to the prior year, due to a downward trend in the stock and bond markets brought about rising inflation and subsequent rises in interest rates. The annual mark-to-market adjustment required by Governmental Accounting Standards Board (GASB) accounting standard #31 results in the recognition of this temporary change in value of the City’s investments.

Chart 1 shows the distribution of revenues from Governmental Activities by category.

Chart 1
Revenues by Source - Governmental Activities FY 2021-22 12 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Governmental program expenses increased by $2.4 million, or 1.8%, in comparison to the prior year.

Increases were seen in most departments partially due to higher salary and benefit costs as positions were unfrozen during the year but also due to increased spending on operational supplies in response to expanded public services provided as the City continued to recover from the pandemic. Interest on long-term debt increased to $4.7 million, from $2.2 million in the prior year, due to repayments beginning on the 2021A bonds which were issued to pay for construction of the new Civic Center Campus.

Table 3 illustrates the difference between program revenues and program expenses. Program revenues consist of capital and operating grants and contributions, and fees for services. General City revenues, such as property taxes, sales taxes, transient occupancy taxes, licenses and permits, and investment earnings, cover the shortfall between program revenues and program expenses.

Table 3
Net (Expense) / Revenue from Services
Governmental Activities
(In Millions)
In FY 2021-22, the net expense for governmental activities decreased by $20.1 million from $74.0 million to $53.9 million, due to a $2.4 million increase in Governmental program expenses, as previously discussed, and a $22.5 million increase in program revenues primarily in charges for services which includes developer impact fees.

Increase / (Decrease)
2022 2021 Amount %
General government $     (11.2) $       (9.8) $       (1.4) 14.3% Fire department (20.7) (28.3) 7.6 (26.9%)
Police department (32.0) (31.0) (1.0) 3.2%
Public works department 17.3 21.4 (4.1) (19.2%)
Recreation and community services (15.9) (15.3) (0.6) 3.9% Library (4.4) (2.0) (2.4) 120.0%
Economic and community development 17.7 (6.8) 24.5 (360.3%) Interest on long‐term debt (4.7) (2.2) (2.5) 113.6%
Total $     (53.9) $     (74.0) $      20.1 (27.2%)
13 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Business-Type Activities
Table 4 shows that total assets and deferred outflows of resources exceed the total liabilities and deferred inflows of resources as of June 30, 2022 for Business-Type Activities:

Table 4
Business-type Net Position at June 30 (in Millions)
The total net position for Business-Type Activities increased by $7.1 million, or 5.4%, compared to the prior year. Total assets increased slightly by $1.6 million, or 0.7%, reflecting increases of capital assets related primarily to construction in the Water Quality Control Plant (WQCP) Wet Weather and Digester Improvements project, the rehabilitation of the WQCP secondary clarifiers and the Orange Memorial Park Stormwater capture project. This was offset somewhat by lower cash balances due to reduced sewer charge revenues as previously discussed, and a lower receivables balance. Total liabilities, on the other hand, decreased by $10.7 million due to a lower accounts payable balance at year end and a $6.1 million lower net pension liability due to substantial gains made during the measurement period. Similar to Governmental Activities and pursuant to GASB 75 and GASB 68 requirements, respectively, the City, as in prior years, recognized the Net OPEB liability of $5.8 million and Net Pension Liability of $14.4 million attributable to Business-Type Activities.

Increase / (Decrease)
2022 2021 Amount %
Cash and Investments 25.0 $       $      30.2 $       (5.2) (17.2%) Other assets 5.1 8.3 (3.2) (38.6%)
Capital assets 196.4 186.4 10.0 5.4%
Total assets 226.5 224.9 1.6 0.7%
Deferred outflows related to pension/OPEB 3.2 3.4 (0.2) (5.9%) Total Deferred outflow of resources 3.2 3.4 (0.2) (5.9%) Long‐term liabilities outstanding 57.5 57.6 (0.1) (0.2%) Other liabilities 29.1 39.7 (10.6) (26.7%)
Total liabilities 86.6 97.3 (10.7) (11.0%)
Deferred inflows related to pension/OPEB 5.3 0.2 5.1 2550.0% Total deferred inflow of resources 5.3 0.2 5.1 2550.0%
Net position:

Net investment in capital assets 133.6 123.6 10.0 8.1%
Restricted 0.0 0.0 0.0 0.0%
Unrestricted 4.3 7.2 (2.9) 100.0%
Total net position $    137.9 $    130.8 $        7.1 5.4% 14 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Table 5 below shows the changes in net position for Business-Type Activities:

Table 5
Change in Business-Type Activities Net Position
(In Millions)
Expenses from Business-Type Activities in FY2021-22 decreased slightly by $0.2 million to $28.7 million while total revenues (program and general revenues combined) also decreased, more significantly, by $6.3 million to $34.4 million. The total change in net position was an increase of $7.1 million after transfers compared to the $16.8 million increase in net position in the prior year.

Despite lower revenues in FY2021-22 and a negative mark to market in investment earnings, control of expenses and reduced transfers out to other funds helped to ensure an increase in net position, albeit a lower increase than in the prior year.

Increase / (Decrease)
2022 2021 Amount %
Expenses
Sewer Enterprise 26.2 $       $      26.7 $       (0.5) (1.9%) Parking District 1.2 1.3 (0.1) (7.7%)
Storm Water 1.3 0.9 0.4 44.4%
Total expenses 28.7 28.9 (0.2) (0.7%)
Revenues
Program Revenues
Charges for Services 24.2 25.8 (1.6) (6.2%)
Operating and Capital grants and contributions 11.0 14.8 (3.8) (25.7%) Total program revenues 35.2 40.6 (5.4) (13.3%)
General revenues
Investment earnings (0.8) 0.1 (0.9) (1700.0%)
Total general revenues (0.8) 0.1 (0.9) (1700.0%)
Excess (deficiency) before transfers 5.7 11.8 (6.1) (51.5%) Transfers 1.4 5.0 (3.6) (72.0%)
Change in net position 7.1 16.8 (9.7) (57.6%)
Net position ‐ beginning 130.8 114.0 16.8 14.7%
Net position ‐ ending $    137.9 $    130.8 $         7.1 5.5% 15 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
Governmental funds highlight the City’s near-term inflows, outflows, and balances of spendable resources. Such information can be helpful in determining the City’s financial condition.

Unrestricted fund balance is a major indicator of designated and uncommitted resources available for spending in future fiscal years.

At June 30, 2022, the City’s Governmental Funds reported combined fund balances of $343.7 million, an increase of $33.6 million, or 10.8%, compared to the prior year. This was primarily due to the creation of new governmental funds for the capital improvement projects at Orange Memorial Park funded by the series 2022A bond issuance. The General Fund ending fund balance, which includes Measure W, was $76.6 million, reflecting an increase of $0.9 million, or 1.2%, over the prior year primarily due to stronger revenues in most major revenue categories.

Total Governmental Fund revenues (excluding transfers and special items) increased by $35.6 million, or 21.4%, from $166.2 million to $201.8 million, with increases in all categories except interest and rentals, licenses and permits and other revenues. Property tax, sales tax, TOT and intergovernmental revenues all saw increases of at least $5 million in each category with charges for services rising by $22.6 million mainly due to greater impact fee receipts from various development projects in progress throughout the City.

Total Governmental Fund expenditures (excluding transfers and special items) increased by $30.2 million, or 14.7%, from $206.1 million in the prior year to $236.3 million in FY 2021-22, primarily due to increased project expenditures for the new Civic Center Campus, partially offset by reduced expenditures on the Police station which was completed during the year. In addition, most departments saw increases in expenditures as public services expanded during the year as the recovery from the pandemic continued and vacant positions were unfrozen. Debt service increased by $6.9 million due to repayments beginning for the 2021A bond issuance. Capital outlay expenses of $5.5 million were also incurred related to the purchase of land for the new fire station at 71 Camaritas Avenue.

Comparison of General Fund Final Budgets to Original Adopted Budget The budget is initially adopted by the City Council in June, based on revenue projections that are up to date through May. Between May and the end of the fiscal year, there can be major fluctuations in revenues depending on the economy and/or actions by the State of California. There can also be significant changes to departmental expenditure budgets to the extent unforeseen expenditures occur. In the Fund Financial Statements, the page titled “Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual” later in this document shows the initial adopted and final budgets for the General Fund (including Measure W). Changes between the adopted and final budgets are shown and explained in table 6:
16 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Comparison of General Fund (excluding transfers) Final Budgets to Original Adopted Budget (in Thousands)
Table 6
Original Final Pct Discussion:

Revenues Budget Budget Change Change (Items of more than 5% and $100,000 variance) Property taxes $ 41,075 41,075$ $ -
Sales taxes 32,239 32,989 750 2.3%
Transient occupancy taxes 7,085 8,585 21.2% 1,500
Travel industry continued to recover strongly from the
COVID-19 pandemic leading to higher hotel occupancy
rates and upward budget revision
Other taxes 3,615 3,615 -
Franchise Fee 4,600 4,600 -
Intergovernmental 2,325 5,820 150.3% 3,495
Reflects multiple federal, state and local grants applied for during the year, adjustments for General Plan update, fire rescue vehicles, Colma Creek project work, the Economic Advancement Center and various other projects
Interest and rentals 3,565 3,505 (60) -1.7%
Licenses and permits 16,453 16,453 -
Charges for services 9,287 7,848 -15.5% (1,439)
Lingering effects of the COVID-19 pandemic on child care, classes and facility rentals leading to a decision to revise the budget downwards during the mid-year review
Fines and forfeitures 677 677 -
Other 233 394 161 69.1% Multiple small donations received during the year leading to upward budget revision
Total 121,154 $ 125,561$ 4,407$ 3.6%
Original Final Pct Discussion:

Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance) City Council $ 292 292$ -$
City Clerk 1,152 1,231 79 6.9%
City Treasurer 160 160 -
City Attorney 910 910 -
City Manager 3,608 4,512 904 25.1% Roll over of purchase orders related to General Plan update, incentive pay adjustment
Finance 3,808 4,386 578 15.2%
Accounts for various purchase orders carried over from the previous FY, e.g. ERP replacement project consultant,
incentive pay adjustment
Non-Departmental 1,294 1,369 75 5.8%
Human Resources 2,042 2,307 265 13.0%
Roll over of purchase orders related to summer jobs for youth program and MOU labor negotiations, employee
incentive pay adjustment
Economic and Community
Development 8,228 16,293 98.0% 8,065
Roll over of purchase orders from the previous year for plan review and building inspection services, General Plan update and work related to the Economic Advancement
Center
Fire 29,508 29,892 1.3% 384
Police 32,388 32,844 1.4% 456
Public Works 5,978 6,396 418 7.0%
Roll over of purchase orders from the previous year plus adjustments for employee incentive pay, part-time workers for graffiti remediation and free South City shuttle outreach Library 6,222 6,898 676 10.9% Adjustments for appropriations of multiple state and local grants received for Library programs
Parks and Recreation 16,729 18,372 1,643 9.8%
Adjustments for appropriations of local grants received during the year, roll over of purchase orders from the
previous year, adjustments for additional vehicles, concert in the park, breezeway improvements, master arts plan
and employee incentive pay
Total 112,319 $ $ 125,862 13,543$ 12.1%
17 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Analysis of Major Governmental Funds
General Fund
In FY 2021-22, total General Fund revenues, excluding transfers in, were $140.9 million which was $15.3 million, or 12.2% higher than the final amended budget. Total General Fund expenditures, excluding transfers out and including encumbrances, ended FY 2021-22 at $129.5 million which was $3.7 million, or 2.9%, higher than final budget due to overspends in various departments and carry over of a significant number of purchase orders.

As of June 30, 2022, the General Fund total fund balance was $76.6 million, $11.9 million of which was attributable to Measure W. Of the remaining fund balance, $25.1 million was held in reserve in accordance with city policy which is aligned with the Governmental Finance Officers Association (GFOA) recommended reserve practice of between 15-20 percent of General Fund operating revenue. The remaining $39.6 million was held in designation/reserve accounts for various purposes including unassigned fund balance (available for operational use), encumbrances (committed expenditure items), capital projects and land held for development.

Revenues. Property tax collections in FY 2020-21 were $49.8 million, which was $8.7 million or

21.2% over final budget. This was mainly due to higher-than-expected Vehicle Licensing Fee (VLF) payments which included an additional $3.7 million allocated to the City by the state in relation to a VLF shortfall in the prior year.

Sales tax revenue, including Measure W, was $37.8 million, which was $4.8 million or 14.5% over final budget, reflecting the City’s strong recovery from the COVID-19 pandemic.

Transient occupancy taxes totaled $12.1 million for the year, which was $3.6 million, or 41.4%, over final budget. This category was budgeted conservatively due to the expected lingering impacts of the pandemic on the hospitality industry seen in the prior year. However, travel rebounded quickly leading to high hotel occupancy rates and considerably higher final collections than budget. By way of contrast, pre-pandemic TOT levels were approximately $17 million (FY2018-19).

Intergovernmental revenues were $3.2 million which is $2.6 million, or 45.1%, lower than final budget mainly due to the timing of receipt of various grants, many of which are on a reimbursement basis so it depends on progress of projects during the year.

Licenses and permits revenues were $14.1 million, which was $2.4 million or 14.5% under final budget. This category can be very difficult to budget since receipts depend on the timing of development projects within the City.

Charges for services was $9.7 million, which was $1.9 million or 24.2% above budget. This category was revised downward during the mid-year review due to lower than expected receipts at the time for classes, rentals and child care but the year ended much stronger than expected and exceeded the original budget.

18 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Measure W revenue increased by $2.0 million, or 15.1%, from $13.4 million in FY2020-21 to $15.4 million in FY 2021-22 and exceeded budget by $2.7 million primarily due to the City’s strong continued recovery from the COVID-19 pandemic.

Expenditures. Higher than expected expenditures in the Fire department are primarily payrollrelated, particularly in overtime due to regular staff working additional hours to cover unfilled vacancies. To a lesser extent, the Police department also saw payroll-related expenditures exceed budget but this was partially offset by underspends in supplies and services. The Non-Departmental category was over budget due to a one-time transfer to the City Benefits Fund to address a deficit in the fund. These overspends were offset by savings in other departments, including Finance, Library and Economic and Community Development. Compared to the prior year, General Fund expenditures, excluding transfers and including encumbrances, increased from $114.5 million to $129.2 million. This was driven by the recovery from the pandemic and the commensurate return to a more normal level of services to residents which led to more staffing and operational expenditures. Versus final budget, the General Fund ended the year with a $3.7 million unfavorable variance.

Low and Moderate Income Housing Assets Fund
Up until Redevelopment Agencies were abolished in FY 2011-12 by the State of California under ABX1 26, the City set aside 20% of Redevelopment property taxes to fund the provision of new affordable housing units, as well as the operation and maintenance of housing stock that the Redevelopment Agency had already funded. That fund was formerly called the Low/Moderate Income Housing Fund. With its source of funding (20% of Redevelopment property tax dollars) abolished, the City Council voted to take on the operations of the former housing units by becoming the Housing Successor Agency, with activities funded primarily from the rental revenues received by the City for those City-owned occupied housing units. Any shortfall between the rents received and the operations and maintenance costs of those housing units are funded by either one-time grants or by the General Fund. Any fund balances will be held for future housing property maintenance needs.

As of June 30, 2022, the fund balance was $3.0 million, a slight reduction from $3.2 million at the end of the prior year. In FY 2021-22, the City Housing Fund received $0.1 million in revenues. The fund had $0.3 million in expenditures, $0.1 million of which was for rental assistance to households severely impacted by the COVID-19 pandemic and $0.2 million for administrative staff costs to support the City’s Housing Division.

19 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
American Rescue Plan Act Fund
In response to the COVID-19 pandemic, the federal government passed the American Rescue Plan Act (ARPA) in March 2021 which included financial aid to be provided to cities. The City of South San Francisco was awarded $12.3 million in ARPA funds, received in two equal tranches in June 2021 and June 2022. During FY 2021-22, $1.1 million was spent on the Guaranteed Income Pilot Program and other minor projects to support communities impacted by the pandemic. $2.6 million was also transferred to the General Fund to replace revenues lost as a direct result of pandemic impacts. ARPA funds are held as unearned revenue on the balance sheet, netting off against the cash balance, and recognized as revenue as project expenditures are incurred. This results in a zero fund balance at year end.

Capital Improvement Funds
The City consolidates and reports its governmental fund-type capital project expenditures in these funds. Resources consist of transfers from the General Fund, Major and non-Major funds, developer impact fees, and gasoline taxes and transportation sales taxes from non-Major governmental funds.

Resources also come from federal, state, and local grants, contributions from other cities, utilities and private developers. From time to time and when financially feasible and prudent to do so, the City issues bonds which generate proceeds for large-scale public facility projects. In addition to the bond issuances in FY2019-20 for the new Police station (series 2020A) and in FY2020-21 for the Civic Center Campus (series 2021A), the City issued $65.4 million in bonds to fund the construction of the new Aquatic Center and ballfields at Orange Memorial Park as well as the replacement of the playground and two bridges over Colma Creek also at Orange Memorial Park (series 2022A). Entire capital projects are appropriated in one-year, but expended over multiple years, with unspent appropriations carried forward year-to-year until completion. In FY 2021-22, combined ending fund balance for Capital Improvement Funds (excluding Impact Fee Funds) was $149.7 million which increased $12.8 million from the combined ending fund balance of $130.9 million in the prior year.

The increase was due to the issuance of the $65.4 million series 2022A bonds which generated proceeds for projects which was largely offset by the spending down of the series 2020A bond proceeds as the new Police Station neared completion during the year, and the series 2021A bond proceeds as the Civic Center Campus construction continued apace.

Developer Impact Fees Capital Projects Funds
To ensure developers pay their fair share of the impact of new developments on the City’s capital and infrastructure, the City imposes impact fees. As South San Francisco emerged from the COVID19 pandemic during FY2021-22, the City continued to experience a robust development environment that accounted for significant collection of developer impact fees including $1.0 million in East of 101 Sewer Impact Fees to be used for capital projects to maintain the sewer collection and treatment facilities serving the east of 101 area. This fund experienced an overall $0.8 million increase during the year in fund balance from $4.1 million to $4.9 million.

20 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
The City also received $7.1 million in Traffic Impact Fees from developers to be used for expanded roadway and intersection improvements serving the east of 101 area. After the effect of the negative mark-to-market of city investments and transfer out of $6 million to fund CIP projects, the fund balance increased slightly to $24.8 million from $24.5 million in the prior year.

Childcare impact fees in the amount of $7.7 million were also received in the year from developers.

These funds will be used for new and expanded childcare facilities in the City. As a result of these receipts, fund balance climbed to $13.9 million in FY 2021-22 from $7.1 million in the prior year.

Other Governmental Funds
Presented as a group in the Basic Financial Statements, these funds are individually presented as Supplementary Information.

In addition to the impact fees classified as major funds in FY 2021-22 discussed previously, it’s worth noting that other impact fee funds, presented as non-major funds, also received considerable developer payments during the year owing to the high level of development activity in the City. This includes $4.0 million in Park Construction Impact Fees which will be used for the improvements and construction of City-park facilities, $3.4 million in Commercial Linkage Impact Fees which will be used to provide affordable housing and to support the City’s adopted 2015-2023 Housing Element, $1.7 million in Public Safety Impact Fees to be used for new and expanded public safety capital facility projects and equipment, $1.7 million in Park Land Acquisition Fees to be used to acquire land for parks within the City, and $14.0 million in Oyster Point Development Impact Fees to be used for interchange projects in the Oyster Point area.

Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating revenue (before non-operating revenues and operating transfers) of $28.4 million in FY2021-22, a decrease of $5.4 million, or 16.0%, from $33.8 million in the prior year. This substantial reduction in revenue is a direct impact from the COVID19 pandemic during which many commercial locations closed for long periods of time resulting in substantially less water usage and therefore smaller sewer effluent volumes on which service charges are based. This was combined with an overall drive by large commercial sites within the City to conserve water which subsequently reduces service charge revenues. Since charges are always based on the prior year water use, revenues for FY2021-22 were lower than normal.

Operating expenses decreased $0.3 million, or 1.0%, from $ 26.1 million to $25.8 million, due to lower payroll-related expenses from vacancies, partially offset by increases in professional services, program supplies and utilities.
21 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Parking District Fund
In FY 2022, the Parking District fund reported an operating loss (before non-operating revenues and operating transfers) of $0.2 million which was a reduction on the loss in the prior year of $0.6 million.

Operating revenues increased by $0.2 million, or 30.0%, from $0.8 million to $1.0 million, primarily due to increased usage of parking meters as businesses opened up as the City continued to recover from the pandemic and shoppers returned in their cars to the downtown area. Operating expenses decreased by $0.1 million, or 12.5%, from $1.3 million to $1.2 million due to lower professional services expenses.

Storm Water Fund
The Storm Water Fund is used to account for resources needed to fund storm drain and storm infrastructure operations, maintenance, capital replacement, and compliance with various federal and state regulations regarding storm water runoff. Revenues totaled $0.4 million, which is flat compared to the prior year, primarily from a levy on property owners. Transfers in from other funds totaled $0.9 million - $0.2 million from the General Fund and $0.7 million from non-Major Governmental Funds. A total of $5.3 million in grant reimbursements was received during the year from the state in relation to the Orange Memorial Park storm water capture CIP project. Operating expenses in this fund totaled $1.3 million, an increase of $0.4 million, or 42.0%, from $0.9 million in the prior year, primarily due to higher payroll-related expenditures. Net position increased $5.4 million from $11.5 million to $16.8 million, largely due to the grant received, and year-end accruals for additional grant reimbursements for work completed during the year.

22 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022

CAPITAL ASSETS
Generally accepted accounting principles require the City to add infrastructure to its reportable capital assets. Infrastructure includes streets, drainage systems, and traffic control and safety devices.

The City has successfully reported on the depreciated value of all such assets acquired or built since 1980. The City reports the depreciated book value of other types of capital assets such as buildings, land, equipment and furniture, on the City-wide Statement of Net Position. Such information is summarized below and is more completely detailed in Note 3 to the Basic Financial Statements. The City depreciates all of its capital assets, except land and construction in progress.

At June 30, 2022, the City had $662.1 million in capital assets (as shown in table 7 below), net of depreciation, representing a substantial increase of $92.6 million from the prior year, driven primarily by in-progress construction projects such as the new Civic Center Campus.

The City’s various capital asset types used in Governmental and Business-Type Activities, are illustrated in Table 7:

Table 7
Capital Assets (in Millions) at June 30
Increase / (Decrease)
2022 2021 Amount %
Governmental Activities:

Land 72.2 $       $      66.7 $         5.5 8.2%
Buildings and improvements 97.4 97.4 0.0 0.0%
Equipment and vehicles 24.8 24.5 0.3 1.2%
Furniture and fixtures 2.6 2.6 0.0 0.0%
Infrastructure ‐ streets 205.6 200.9 4.7 2.3%
Infrastructure ‐ traffic control devices 12.6 12.6 0.0 0.0% Infrastructure ‐ storm drains 8.9 8.9 0.0 0.0%
Construction in progress 241.9 160.4 81.5 50.8%
Less accumulated depreciation (200.3) (190.9) (9.4) 4.9% Totals $    465.7 $    383.1 $      82.6 21.6%
Business‐Type Activities
Land $         0.8 $          ‐ 0.8 $         0.0%
Buildings and improvements 80.1 80.1 0.0 0.0%
Clean water facilities and transmission line 79.9 79.9 0.0 0.0% Infrastructure ‐ storm drains 6.2 6.2 0.0 0.0%
Infrastructure ‐ streets 7.4 7.4 0.0 0.0%
Equipment and vehicles 18.5 18.5 0.0 0.0%
Construction in progress 84.0 68.9 15.1 21.9%
Less accumulated depreciation (80.5) (75.4) (5.1) 6.8%
Totals $    196.4 $    186.4 $      10.0 5.4%
Total City $    662.1 $    569.5 $      92.6 16.3%
23 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022

DEBT ADMINISTRATION
Each of the City’s debt issuances is discussed in detail in Note 5 to the Basic Financial Statements.

A summary of the City’s outstanding debt for the past two fiscal years is shown in table 8 (excluding unamortized bond premiums):

Table 8
Outstanding Debt
(In Millions) at June 30
In June 2022, the City of South San Francisco Public Facilities Financing Authority issued $65.4 million in lease revenue bonds, Series 2022A, for the construction of the new Aquatic Center and ballfields, and the replacement of the playground and two bridges over Colma Creek at Orange Memorial Park. The City received a total of $72.1 million in proceeds from this issuance, of which $49 million, $12.3 million, $2.2 million and $1.5 million was allocated to the four projects respectively, and $7.1 million reserved for capitalized interest and fees.

Outstanding debt for Business-Type Activities remained static when compared to the prior year since the $5.1 million drawdown against the State Water Resources Board loan was equivalent to the amount of the loan retired during FY 2021-22.

The largest remaining debt obligations are as follows:
- 1999, 2004, 2008 State Water Resources Control Board Loans – Original debt:
$78.144.286; 2.4% to 2.6% interest rate; due 8/1/22, 4/30/26, 7/15/28. These loans were used to improve and expand the City’s Water Quality Control Plant (WQCP).

Loan proceeds were issued as projects progressed. Debt service payment commenced one year after project completion. WQCP user fees support the debt service payments.

Because of the regional benefits and equity interest in these projects, the City of San Bruno shares in the loan repayments for the first two of the four current loans.

Increase / (Decrease)
Governmental Activities 2022 2021 Amount %
Lease Revenue Bonds $    191.6 $    129.4 $      62.2 100.0% Plus: Unamortized Bond Premium 33.2 27.6 5.6 100.0%
Loan payable to Successor Agency 2.2 3.6 (1.4) (38.9%)
Capital leases 0.1 0.3 (0.2) (66.7%)
Total Governmental Activities Outstanding Debt 227.1 $     $    160.9 $      66.2 41.1% Business‐type Activities
State Water Resources Board loans $      60.8 $      60.5 $         0.3 0.5% 2005 Sewer Bonds 2.0 2.3 (0.3) (13.0%)
Total Business‐type Activities Outstanding Debt 62.8 $       $       ‐ 62.8 $         0.0% 24 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
- 2018 State Water Resources Control Board Loan - Original debt: $53,403,000; 1.8% interest rate; due October 3, 2042. The loan proceeds are being used for the WQCP Wet Weather and Digester project. Loan proceeds have been issued over time as projects progressed. Debt service payments are due to commence on October 3, 2023, one year after project completion. WQCP user fees support the debt service payments. - 2020A Lease Revenue Bonds - Original debt: $43,905,000; premium received:
$10,242,530; 4 - 5% interest rate; due June 1, 2046. The bonds were used for Phase I of the Civic Center Campus project consisting of the planning and construction of a new Police Station and Dispatch Center for the City of South San Francisco. Measure W sales tax revenue will fund the repayments.
- 2021A Lease Revenue Bonds - Original debt: $86,410,000; premium received:
$18,116,565; 4% interest rate; due June 1, 2046. $78,000,000 of the bond proceeds are to be used for Phase II of the Civic Center Campus project consisting of the design and construction of the new library, parks and recreation center, council chambers and landscaping of the immediate surrounding area. $24,000,000 will be used for road pavement rehabilitation throughout the City, and $2,000,000 will be used for solar roof installation at the City's Corporation Yard. Measure W sales tax revenue will fund the repayments.
- 2022A Lease Revenue Bonds - Original debt: $65,420,000; premium received:
$6,686,317; 4-5.25% interest rate; due June 1, 2046. $49,000,000 of the bond proceeds are to be used for construction of the new Aquatic Center. $12.3 million will be used for constructions of new ballfields. $2.2 million will be used for replacement of the playground at Orange Memorial Park. $1.5 million will be used for replacement of two bridges over Colma Creek at Orange Memorial Park. Measure W sales tax revenue will fund the repayments.

ECONOMIC OUTLOOK AND MAJOR ACCOMPLISHMENTS
The economic outlook and major accomplishments of the City are discussed in the accompanying Transmittal Letter.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide readers with a general overview of the City’s finances. Questions about this report or requests for additional financial information should be addressed to the City of South San Francisco, Finance Department, P.O. Box 711, South San Francisco, CA 94083.
25 This Page Left Intentionally Blank

CITY OF SOUTH SAN FRANCISCO

STATEMENT OF NET POSITION AND

STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position.

The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets and deferred outflows of resources.

The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities in a single column, and the financial position of all the City’s Business-Type Activities in a single column; these columns are followed by a total column which presents the financial position of the entire City.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances. The City’s Business Type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.

The Statement of Activities presents the City’s expenses first, listed by program, and follow these with the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these Statements include the financial activities of the City, the City of South San Francisco Capital Improvements Financing Authority, the Parking Authority of the City of South San Francisco and the City of South San Francisco Public Facilities Financing Authority that are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for the activities. Data for the South San Francisco Conference Center Authority is reflected as a discretely presented component unit of the City. This data is presented separately from other funds of the City to reflect operations under control of a governing body with a voting majority which is different from the City Council.
27 This Page Left Intentionally Blank
Component Unit
Primary Government South San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
ASSETS
Cash and investments (Note 2) $239,818,986 $25,001,166 $264,820,152 $3,374,045 Receivables:

Accounts 22,031,560 5,539,679 27,571,239 239,569
Accrued interest 656,639 67,683 724,322
Loans 3,253,202 3,253,202
Due from Conference Center 40,379 40,379
Leases (Note 10) 14,653,121 14,653,121
Internal balances (Note 4A) 630,000 (630,000)
Deposits 309,790 309,790 17,042
Inventory 4,099 4,099
Prepaid items 1,204,373 1,204,373
Restricted cash and investments (Note 2) 144,307,312 182,446 144,489,758 Properties held for redevelopment (Note 1N) 14,763,033 14,763,033 Capital assets (Note 3):

Nondepreciable 314,107,786 84,778,042 398,885,828
Depreciable, net accumulated depreciation 151,587,263 111,599,962 263,187,225 3,656,555 Total Assets 907,367,543 226,538,978 1,133,906,521 7,287,211

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7) 23,087,021 2,565,225 25,652,246 Related to OPEB (Note 9) 5,669,372 629,930 6,299,302
Total Deferred Outflows of Resources 28,756,393 3,195,155 31,951,548

LIABILITIES
Accounts payable 21,665,787 590,727 22,256,514 148,705
Accrued salaries and benefits 1,766,827 1,766,827 49,167 Accrued interest payable 690,006 210,916 900,922
Other payables 4,952,192 1,901,456 6,853,648
Deposits payable 5,348,610 7,500 5,356,110 256,306
Unearned revenue 8,481,273 33,027 8,514,300
Accrued insurance losses (Note 12):

Due within one year 3,047,258 3,047,258
Due in more than one year 13,436,000 13,436,000
Compensated absences obligation (Note 1L):

Due within one year 5,432,020 589,258 6,021,278
Due in more than one year 3,032,874 200,814 3,233,688
Debt and lease financing obligations (Note 5):

Due within one year 3,329,637 5,312,308 8,641,945
Due in more than one year 223,757,842 57,467,142 281,224,984 Lease liability (Note 10):

Due within one year 349,429
Due in more than one year 2,059,878
Net pension liability - due in more than one year (Note 7) 129,941,552 14,437,950 144,379,502 Net OPEB Liability - due in more than one year (Note 9) 52,307,242 5,811,916 58,119,158 Total Liabilities 477,189,120 86,563,014 563,752,134 2,863,485

DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7) 41,567,798 4,618,644 46,186,442 Related to OPEB (Note 9) 6,140,322 682,258 6,822,580
Related to leases (Note 10) 14,390,446 14,390,446
Total Deferred Inflows of Resources 62,098,566 5,300,902 67,399,468 NET POSITION (Note 6)
Net investment in capital assets 452,722,446 133,598,554 586,321,000 1,247,248 Restricted for:

Debt service
Special revenue projects 39,574,200 39,574,200
Capital projects 84,722,535 84,722,535
Redevelopment and community development activities 14,763,033 14,763,033 Total Restricted Net Position 139,059,768 139,059,768
Unrestricted (194,945,964) 4,271,663 (190,674,301) 3,176,478 Total Net Position $396,836,250 $137,870,217 $534,706,467 $4,423,726 See accompanying notes to financial statements

CITY OF SOUTH SAN FRANCISCO

STATEMENT OF NET POSITION
JUNE 30, 2022
29 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government
Governmental Activities:

General Government $20,793,108 $5,413,298 $4,195,664
Fire 28,530,628 7,857,602 14,500
Police 35,635,007 2,878,353 775,579
Public Works 7,544,142 17,734,041 3,745,967 $3,342,651
Parks and Recreation 19,482,582 3,058,826 485,986
Library 6,060,920 1,054,339 566,457
Economic and Community Development 12,034,671 28,676,546 1,068,593 Interest on long term debt 4,686,930
Total Governmental Activities 134,767,988 66,673,005 10,852,746 3,342,651 Business-type Activities
Sewer 26,246,647 22,778,206 5,663,695
Parking District 1,170,305 993,986
Storm Water 1,309,360 412,842 5,252,622
Total Business-type Activities 28,726,312 24,185,034 5,663,695 5,252,622 Total Primary Government $163,494,300 $90,858,039 $16,516,441 $8,595,273 Component Unit
Conference Center $2,959,376 $752,191
General revenues:

Taxes:

Property taxes
Sales taxes
Transient occupancy taxes
Franchise Fees
Other taxes
Motor vehicle in lieu, unrestricted
Property taxes in lieu of vehicle license fees
Investment earnings
Gain on sale of property
Miscellaneous
Special Item:

Remittance of land sale proceeds to taxing entities
Transfers (Note 4)
Total general revenues, special item and transfers
Change in Net Position
Net Position - Beginning, as Restated (Note 1T)
Net Position - Ending
See accompanying notes to financial statements

CITY OF SOUTH SAN FRANCISCO

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Program Revenues
30 Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($11,184,146) ($11,184,146)
(20,658,526) (20,658,526)
(31,981,075) (31,981,075)
17,278,517 17,278,517
(15,937,770) (15,937,770)
(4,440,124) (4,440,124)
17,710,468 17,710,468
(4,686,930) (4,686,930)
(53,899,586) (53,899,586)
$2,195,254 2,195,254
(176,319) (176,319)
4,356,104 4,356,104
6,375,039 6,375,039
(53,899,586) 6,375,039 (47,524,547)
($2,207,185)
40,011,221 40,011,221
38,143,689 38,143,689
12,135,638 12,135,638 1,817,344
4,863,076 4,863,076
6,537,423 6,537,423
77,558 77,558
11,988,715 11,988,715
(6,724,092) (761,751) (7,485,843) 11,377
1,518,059 1,518,059
14,458,939 14,458,939
(2,962,923) (2,962,923)
(1,419,235) 1,419,235
118,628,068 657,484 119,285,552 1,828,721
64,728,482 7,032,523 71,761,005 (378,464)
332,107,768 130,837,694 462,945,462 4,802,190
$396,836,250 $137,870,217 $534,706,467 $4,423,726
Primary Government
Net (Expenses) Revenues and Changes in Net Position
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FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.

The funds described below were determined to be Major Funds by the City in fiscal 2022. Individual nonmajor funds may be found in the Supplemental section.

GENERAL FUND
This fund accounts for resources traditionally associated with government, such as administration, public safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.

LOW AND MODERATE INCOME HOUSING ASSETS SPECIAL REVENUE FUND To account for the activities related to the assets assumed by the City as Housing Successor to the housing activities of the former Redevelopment Agency of the City of South San Francisco. The main source of revenue for this fund is the repayment of loans restricted for housing activities.

AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND
To account for the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal government’s response to the impacts of the COVID-19 pandemic.

CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, or improvement of City owned facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants and fees.

EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND
These fees provide new development’s share of new and rehabilitated sewer collection and treatment facilities to serve the East of Highway 101 area.

TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
These fees are to provide new development’s share of new and expanded roadway and intersection improvements to serve the East of Highway 101 area and other areas of the City.

CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND
These citywide fees provide new development’s share of new and expanded childcare facilities to serve the childcare needs of working parents.

CAPITAL INFRASTRUCTURE RESERVE FUND
Replacement, upgrade, and maintenance of the City’s infrastructure are backlogged, constituting a significant liability. Funds are set aside in this fund as part of the budget process and as part of the City’s reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks, buildings, facilities, streets, sidewalks, and storm water facilities). 33 FUND FINANCIAL STATEMENTS (Continued)

CAPITAL IMPROVEMENT POLICE STATION CAPITAL PROJECTS FUND To account for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting the new City police station located within the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds.

CAPITAL IMPROVEMENT CIVIC CAMPUS CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds.

CAPITAL IMPROVEMENT ORANGE MEMORIAL PARK CAPITAL PROJECTS FUND To account for expenditures associated with the acquisition, construction and installation of certain capital improvements at the City-owned Orange Memorial Park and pay the costs incurred in connection with the issuance of the Series 2022A Bonds.
34 This Page Left Intentionally Blank

CITY OF SOUTH SAN FRANCISCO

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2022
Special Revenue Funds Capital Projects Funds
Low and
Moderate American East of 101
General Income Rescue Capital Sewer
Fund Housing Assets Plan Act Improvement Impact Fees
ASSETS
Cash and investments (Note 2) $50,061,615 $2,469,920 $8,263,293 $54,317 $4,860,145 Receivables:

Accounts 18,303,062 5,075 2,443,532
Accrued interest 161,122 7,634 12,661
Due from Conference Center 40,379
Loans 560,238
Leases (Note 10) 13,455,776 1,197,345
Due from other funds (Note 4B) 1,270,000
Inventory 4,099
Restricted cash and investments (Note 2) 152,797 21,296,576 Properties held for redevelopment (Note 1N) 14,763,033
Total Assets $98,211,883 $4,240,212 $8,263,293 $23,794,425 $4,872,806

LIABILITIES
Liabilities:

Accounts payable $4,589,446 $27,938 $5,128,420
Accrued salaries and benefits 1,766,827
Other payable 842,046 1,027,312
Deposits payable 1,159,644
Unearned revenue $8,263,293
Due to other funds (Note 4B) 430,000
Total Liabilities 8,357,963 27,938 8,263,293 6,585,732

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 1,799,387
Related to leases (Note 10) 13,207,264 1,183,182
Total Deferred Inflows of Resources 13,207,264 1,183,182 1,799,387

FUND BALANCE
Fund Balances (Note 6):

Nonspendable 4,099
Restricted 14,763,033 3,029,092 16,847,198 $4,872,806
Committed 16,083,977
Assigned 7,482,439
Unassigned 38,313,108 (1,437,892)
Total Fund Balances (Deficits) 76,646,656 3,029,092 15,409,306 4,872,806 Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) $98,211,883 $4,240,212 $8,263,293 $23,794,425 $4,872,806 See accompanying notes to basic financial statements
36 Capital Projects Funds
Capital
Capital Capital Capital Improvement Other Total
Traffic Child Care Infrastructure Improvement Improvement Orange Governmental Governmental Impact Fees Impact Fees Reserve Police Station Civic Campus Memorial Park Funds Funds $24,685,029 $13,862,533 $24,822,132 $72,342,469 $201,421,453 1,279,891 22,031,560
76,528 38,631 68,792 186,179 551,547
40,379
2,692,964 3,253,202
14,653,121
1,270,000
4,099
$708,008 $50,463,437 $71,684,403 2,091 144,307,312
14,763,033
$24,761,557 $13,901,164 $24,890,924 $708,008 $50,463,437 $71,684,403 $76,503,594 $402,295,706 $1,100 $10,875,293 $614,031 $21,236,228
1,766,827
$239,226 2,307,779 535,797 4,952,160
4,188,966 5,348,610
217,980 8,481,273
210,000 640,000
1,100 239,226 13,183,072 5,766,774 42,425,098
1,799,387
14,390,446
16,189,833
4,099
$24,761,557 $13,901,164 468,782 37,280,365 $71,684,403 70,736,820 258,345,220 16,083,977
24,889,824 32,372,263
36,875,216
24,761,557 13,901,164 24,889,824 468,782 37,280,365 71,684,403 70,736,820 343,680,775 $24,761,557 $13,901,164 $24,890,924 $708,008 $50,463,437 $71,684,403 $76,503,594 $402,295,706 37 CITY OF SOUTH SAN FRANCISCO

GOVERNMENTAL FUNDS

BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL

FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES JUNE 30, 2022
Total fund balances reported on the governmental funds balance sheet $343,680,775 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds because of the following:

Capital assets used in Governmental Activities are not financial resources and, therefore, are not reported in the Governmental Funds. 461,292,492 Internal service funds are used by management to charge the cost of management of communication, telephone, building, fleet maintenance, equipment replacement, workers' compensation, employee benefits, insurance, and post-retirement healthcare benefits to individual funds. The assets and liabilities are included in Governmental Activities in the Statement of Net Position. 25,412,720
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the funds:

Long-term debt (226,942,842)
Interest payable (690,006)
Deferred outflows related pension 23,087,021
Deferred outflows related to OPEB 5,669,372
Net OPEB liability (52,307,242)
Net pension liability (129,941,552)
Deferred inflows related to OPEB (6,140,322)
Deferred inflows related to pension (41,567,798)
Compensated absences (6,515,755)
Net position of governmental activities $396,836,250
See accompanying notes to financial statements
38 This Page Left Intentionally Blank
Special Revenue Funds Capital Projects Funds
Low and
Moderate American East of 101
General Income Rescue Capital Sewer
Fund Housing Assets Plan Act Improvement Impact Fees

REVENUES
Property taxes $49,779,284
Sales taxes 37,760,777
Transient occupancy taxes 12,135,638
Franchise Fees 4,863,076
Other taxes 6,537,423
Intergovernmental 3,196,346 $3,755,648 $842,462
Interest and rentals 1,553,209 $98,417 ($145,957)
Licenses and permits 14,062,474
Charges for services 9,747,605 59,335 985,102
Fines and forfeitures 700,961
Other 515,004 47,076 146,037
Total Revenues 140,851,797 145,493 3,755,648 1,047,834 839,145

EXPENDITURES
Current:

City Council 252,677
City Clerk 887,678
City Treasurer 39,852
City Attorney 1,138,457
City Manager 4,191,480
Finance 3,148,914
Non-departmental 2,580,748 1,111,389 2,800
Human Resources 2,065,927
Fire 32,560,468
Police 33,281,487
Public Works 6,294,564 26,413,361
Parks and Recreation 18,092,526
Library 6,495,279
Economic and Community Development 11,006,922 344,379
Other
Capital Outlay
Debt service:

Principal repayments
Interest and fiscal charges
Total Expenditures 122,036,979 344,379 1,111,389 26,413,361 2,800

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 18,814,818 (198,886) 2,644,259 (25,365,527) 836,345

OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,507,641
Issuance of debt
Bond premium
Transfers in (Note 4C) 4,763,729 2,784 14,526,753
Transfers out (Note 4C) (21,235,610) (2,644,259) (2,362) (107,818) Total Other Financing Sources (Uses) (14,964,240) 2,784 (2,644,259) 14,524,391 (107,818) Net Change in Fund Balances before special items 3,850,578 (196,102) (10,841,136) 728,527

SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923)
Net Change in Fund Balances 887,655 (196,102) (10,841,136) 728,527 Fund balances (deficits) - July 1 75,759,001 3,225,194 26,250,442 4,144,279 Fund balances (deficits) - June 30 $76,646,656 $3,029,092 $15,409,306 $4,872,806 See accompanying notes to financial statements

CITY OF SOUTH SAN FRANCISCO

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2022
40 Capital Projects Funds
Capital
Capital Capital Capital Improvement Other Total
Traffic Child Care Infrastructure Improvement Improvement Orange Governmental Governmental Impact Fees Impact Fees Reserve Police Station Civic Campus Memorial Park Funds Funds $2,220,652 $51,999,936
825,500 38,586,277
12,135,638
4,863,076
2,288,982 8,826,405
17,027,848 24,822,304
($880,148) ($441,678) ($797,634) $13,028 $138,823 (2,075,384) (2,537,324) 14,062,474
7,083,871 7,656,815 20,254,318 45,787,046
700,961
1,815,999 2,524,116
6,203,723 7,215,137 (797,634) 13,028 138,823 42,357,915 201,770,909 252,677
887,678
39,852
1,138,457
4,191,480
3,148,914
2,800 3,697,737
2,065,927
37,072 32,597,540
6,332,894 64,536 39,678,917
2,800 45,150 $40,930,120 14,137,377 87,823,372
2,203,316 20,295,842
6,495,279
1,357,866 12,709,167
5,610,278 5,610,278
5,520,422 5,520,422
4,635,000 4,635,000
6,013 421,914 5,097,833 5,525,760
2,800 2,800 5,565,572 6,332,894 40,936,133 421,914 33,143,278 236,314,299 6,200,923 7,212,337 (6,363,206) (6,319,866) (40,797,310) (421,914) 9,214,637 (34,543,390) 1,507,641
65,420,000 65,420,000
6,686,317 6,686,317
8,500,000 102,542 8,324,659 36,220,467
(5,929,676) (99,499) (3,141,590) (5,611,193) (38,772,007) (5,929,676) (99,499) 5,358,410 102,542 72,106,317 2,713,466 71,062,418 271,247 7,112,838 (1,004,796) (6,319,866) (40,694,768) 71,684,403 11,928,103 36,519,028 (2,962,923)
271,247 7,112,838 (1,004,796) (6,319,866) (40,694,768) 71,684,403 11,928,103 33,556,105 24,490,310 6,788,326 25,894,620 6,788,648 77,975,133 58,808,717 310,124,670 $24,761,557 $13,901,164 $24,889,824 $468,782 $37,280,365 $71,684,403 $70,736,820 $343,680,775 41 CITY OF SOUTH SAN FRANCISCO
Reconciliation of the

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $33,556,105 Amounts reported for Governmental Activities in the Statement of Activities are different because of the following:

Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capital assets additions 91,732,476
Current year depreciation (8,611,519)
Long-Term Debt Payments
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.

Proceeds from issuance of bonds (65,420,000)
Bond premium (6,686,317)
Repayment of principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.

Repayment of principal is added back to fund balance 4,635,000 Amortization of premium is added back to fund balance 1,104,016 Accrual of Non-Current Items
of current financial resources and therefore is not reported as revenue or expenditures in governmental funds (net change):

Unavailable revenue 1,799,387
Interest payable (265,186)
Compensated absences 462,871
Net pension liability, deferred outflows and inflows of resources 11,225,062 Net OPEB liability, deferred outflows and inflows of resources 626,641 Allocation of Internal Service Fund Activity
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service fund is reported with governmental activities. 569,946
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $64,728,482 See accompanying notes to financial statements
The amount below included in the Statement of Activities does not require the use 42 CITY OF SOUTH SAN FRANCISCO

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):

Property taxes $41,074,710 $41,074,710 $49,779,284 $8,704,574 Sales taxes 32,239,177 32,989,177 37,760,777 4,771,600
Transient occupancy taxes 7,085,194 8,585,194 12,135,638 3,550,444 Franchise fees 4,600,000 4,600,000 4,863,076 263,076
Other taxes 3,614,753 3,614,753 6,537,423 2,922,670
Intergovernmental 2,325,338 5,818,982 3,196,346 (2,622,636) Interest and rentals 3,564,976 3,504,976 1,553,209 (1,951,767) Licenses and permits 16,453,166 16,453,166 14,062,474 (2,390,692) Charges for services 9,287,470 7,848,478 9,747,605 1,899,127 Fines and forfeitures 676,975 676,975 700,961 23,986
Other 232,718 394,382 515,004 120,622
Amounts available for appropriation 121,154,477 125,560,793 140,851,797 15,291,004 Charges to appropriations (outflows):

City Council 292,426 292,427 252,677 39,750
City Clerk 1,151,844 1,231,044 887,678 343,366
City Treasurer 160,245 160,244 39,852 120,392
City Attorney 910,049 910,049 1,138,457 (228,408)
City Manager 3,607,557 4,512,195 4,451,837 60,358
Finance 3,807,781 4,385,682 3,603,809 781,873
Non-departmental 1,294,252 1,369,252 2,581,079 (1,211,827) Human Resources 2,042,597 2,307,004 2,184,942 122,062
Fire 29,508,065 29,892,151 32,975,264 (3,083,113)
Police 32,386,774 32,843,169 33,383,916 (540,747)
Public Works 5,978,429 6,396,059 6,743,595 (347,536)
Parks and Recreation 16,729,027 18,371,855 18,920,003 (548,148) Library 6,221,935 6,897,585 6,495,735 401,850
Economic and Community Development 8,227,651 16,293,222 15,860,574 432,648 Total charges to appropriations 112,318,632 125,861,938 129,519,418 (3,657,480)

OTHER FINANCING SOURCES (USES)
Gain from sale of property 630,000 690,000 1,507,641 817,641 Transfers in (Note 4C) 1,187,080 5,519,792 4,763,729 (756,063) Transfers out (Note 4C) (9,771,783) (34,516,335) (21,235,610) 13,280,725 Total Other Financing Sources (Uses) (7,954,703) (28,306,543) (14,964,240) 13,342,303 881,142 (28,607,688) (3,631,861) 24,975,827

SPECIAL ITEM
Remittance of land sale proceeds (2,962,923) (2,962,923) NET CHANGE IN FUND BALANCE $881,142 ($28,607,688) (6,594,784) $22,012,904 Fund Balance - July 1 75,759,001
Adjustment to budgetary basis:

Encumbrance adjustments 7,482,439
Fund Balance - June 30 $76,646,656
See accompanying notes to financial statements
Budgeted Amounts

NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEM
43 Variance with
Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Interest and rental $167,000 $167,000 $98,417 ($68,583) Other 140,000 140,000 47,076 (92,924)
Total Revenues 307,000 307,000 145,493 (161,507)
EXPENDITURES:

Current:

Economic and Community Development 671,489 685,423 355,122 330,301 Total Expenditures 671,489 685,423 355,122 330,301

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (364,489) (378,423) (209,629) 168,794

OTHER FINANCING SOURCES (USES)
Transfers in (Note 4C) 2,784 2,784
NET CHANGE IN FUND BALANCE ($364,489) ($375,639) (206,845) $168,794 Fund balance - July 1 3,225,194
Adjustment to budgetary basis:

Encumbrance adjustments 10,743
Fund balance - June 30 $3,029,092

SPECIAL REVENUE FUND
See accompanying notes to financial statements

CITY OF SOUTH SAN FRANCISCO

LOW AND MODERATE INCOME HOUSING ASSETS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
44 MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

SEWER ENTERPRISE FUND
This fund accounts for user charges and debt proceeds supporting the operation, maintenance, and capital expansion of the wastewater collection and treatment system.

PARKING DISTRICT FUND
This fund accounts for meter and parking permit fees used to acquire and maintain parking facilities.

STORM WATER FUND
This fund accounts for user charges sustaining the Storm Water Management Program mandated by state and federal authorities.
45 CITY OF SOUTH SAN FRANCISCO

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
ASSETS
Current assets:

Cash and investments (Note 2) $21,609,890 $3,386,042 $5,234 $25,001,166 $38,397,533 Receivables:

Accounts 1,824,711 3,714,968 5,539,679
Accrued interest 57,079 10,604 67,683 105,092
Deposits 309,790
Prepaid items 1,204,373
Restricted cash and investments (Note 2) 182,446 182,446 Total current assets 23,674,126 3,396,646 3,720,202 30,790,974 40,016,788 Noncurrent assets:

Capital assets (Note 3):

Nondepreciable 71,476,360 421,149 12,880,533 84,778,042 Depreciable, net accumulated depreciation 100,514,898 9,511,977 1,573,087 111,599,962 4,402,557 Total non-current assets 171,991,258 9,933,126 14,453,620 196,378,004 4,402,557 Total Assets 195,665,384 13,329,772 18,173,822 227,168,978 44,419,345

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7) 2,565,225 2,565,225
Related to OPEB (Note 9) 629,930 629,930
Total Deferred Outflows of Resources 3,195,155 3,195,155

LIABILITIES
Current liabilities:

Accounts payable 552,817 16,028 21,882 590,727 429,559
Other payable 1,253,363 648,093 1,901,456 32
Accrued interest payable 210,916 210,916
Deposits payable 7,500 7,500
Unearned revenue 33,027 33,027
Due to other funds (Note 4B) 630,000 630,000
Accrued insurance loss (Note 12) 3,047,258
Compensated absences obligation (Note 1L) 562,874 340 26,044 589,258 1,221,145 Current portion of long-term debt (Note 5) 5,312,308 5,312,308 144,637 Total current liabilities 7,932,805 16,368 1,326,019 9,275,192 4,842,631 Noncurrent liabilities:

Accrued insurance losses (Note 12) 13,436,000
Compensated absences obligation (Note 1L) 186,174 14,640 200,814 727,994 Noncurrent portion of long-term debt (Note 5) 57,467,142 57,467,142 Net pension liability (Note 7) 14,437,950 14,437,950
Net OPEB liability (Note 9) 5,811,916 5,811,916
Total noncurrent liabilities 77,903,182 14,640 77,917,822 14,163,994 Total Liabilities 85,835,987 16,368 1,340,659 87,193,014 19,006,625

DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7) 4,618,644 4,618,644
Related to OPEB (Note 9) 682,258 682,258
Total Deferred Inflows of resources 5,300,902 5,300,902 NET POSITION:

Net investment in capital assets 109,211,808 9,933,126 14,453,620 133,598,554 4,257,919 Unrestricted (deficit) (1,488,158) 3,380,278 2,379,543 4,271,663 21,154,801 Total Net Position $107,723,650 $13,313,404 $16,833,163 $137,870,217 $25,412,720 See accompanying notes to financial statements
46 CITY OF SOUTH SAN FRANCISCO

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2022
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds

OPERATING REVENUES
Charges for services $22,567,226 $412,517 $22,979,743 $28,536,570 Other cities' participation 5,663,695 5,663,695
Permit fees 210,980 210,980
Parking fees $993,986 993,986
Total Operating Revenues 28,441,901 993,986 412,517 29,848,404 28,536,570

OPERATING EXPENSES
Personnel expenses 9,088,372 367,524 1,126,715 10,582,611 18,194,228 Professional services 3,346,076 339,154 51,169 3,736,399 567,727 OPEB Expenses 535,039 554 535,593
Program supplies 1,754,099 1,264 1,067 1,756,430 2,037,346 Insurance 210,870 3,698 214,568 2,623,826
Self-insurance and claims 2,248,076
Repair and maintenance 1,178,368 19,382 1,197,750 856,617 Rents 1,689,059 1,689,059
Utilities 1,742,123 96,164 12,781 1,851,068 176,937
Administration 1,427,208 113,007 48,535 1,588,750
Depreciation 4,814,962 252,638 39,839 5,107,439 967,562 Other 21,262 6,174 27,436 555,977
Total Operating Expenses 25,807,438 1,170,305 1,309,360 28,287,103 28,228,296 Operating Income (Loss) 2,634,463 (176,319) (896,843) 1,561,301 308,274

NONOPERATING REVENUES (EXPENSES)
Interest income (652,348) (121,962) 12,559 (761,751) (1,209,727) Gain on dispositions of capital assets 10,418
Interest expense (439,209) (439,209) (6,614)
Other 325 325 335,290
Total Nonoperating Revenues (Expenses) (1,091,557) (121,962) 12,884 (1,200,635) (870,633) Income (loss) before contributions and transfers 1,542,906 (298,281) (883,959) 360,666 (562,359)

TRANSFERS
Capital subventions and grants 5,252,622 5,252,622
Transfers in (Note 4C) 489,610 1,440 985,261 1,476,311 1,132,305 Transfers (out) (Note 4C) (57,076) (57,076)
Change in Net Position 1,975,440 (296,841) 5,353,924 7,032,523 569,946 Net Position (Deficits) - July 1 105,748,210 13,610,245 11,479,239 130,837,694 24,842,774 Net Position (Deficits) - June 30 $107,723,650 $13,313,404 $16,833,163 $137,870,217 $25,412,720 See accompanying notes to financial statements
47 CITY OF SOUTH SAN FRANCISCO

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $29,519,529 $993,986 $1,572,969 $32,086,484 Cash payments to suppliers for goods and services (12,673,778) (692,133) (126,245) (13,492,156) ($6,258,323) Cash payments to employees for services (10,502,325) (388,938) (1,095,129) (11,986,392) (20,041,496) Cash received from interfund service provided 28,902,887 Cash payments for judgments and claims (1,514,615)
Net Cash Provided by (Used in) Operating Activities 6,343,426 (87,085) 351,595 6,607,936 1,088,453

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Interfund receipts 630,000 630,000
Transfers in 489,610 1,440 985,261 1,476,311 1,132,305
Transfers in (57,076) (57,076)
Net Cash Provided by Noncapital Financing Activities 432,534 1,440 1,615,261 2,049,235 1,132,305

CASH FLOWS FROM CAPITAL

AND RELATED FINANCING ACTIVITIES
Proceeds from issuance of debt 5,147,945 5,147,945
Principal paid on long-term debt (5,173,954) (5,173,954) (140,892) Interest paid on long-term debt (533,286) (533,286) (6,614) Subventions and grants 5,252,622 5,252,622
Acquisition of capital assets, net (9,769,879) (8,222,453) (17,992,332) (424,683) Proceeds from the sale of capital assets 17,719
Net Cash Used in Capital and Related Financing Activities (10,329,174) (2,969,831) (13,299,005) (554,470)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid) (1,476,607) (274,869) 4,707 (1,746,769) (2,726,433) Changes in fair value of investments 822,621 152,820 13,385 988,826 1,514,594 Net Cash Provided by Investing Activities (653,986) (122,049) 18,092 (757,943) (1,211,839) Net Increase (Decrease) in cash and cash equivalents (4,207,200) (207,694) (984,883) (5,399,777) 454,449 Cash and cash equivalents, beginning 25,999,536 3,593,736 990,117 30,583,389 37,943,084 Cash and cash equivalents, ending $21,792,336 $3,386,042 $5,234 $25,183,612 $38,397,533 Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) $2,634,463 ($176,319) ($896,843) $1,561,301 $308,274 Adjustments to reconcile operating income (loss)
to cash flows from operating activities:

Depreciation 4,814,962 252,638 39,839 5,107,439 967,562 Other non-operating revenue (expenses) 325 325 335,290
Net change in assets and liabilities:

Accounts and lease receivables 1,077,628 1,160,127 2,237,755 31,027 Deposit
Prepaid items (1,204,373)
Accounts payable (1,185,649) (141,990) 16,562 (1,311,077) 24,191 Other payable 415,975 (1) 415,974 29
Unearned revenue
Accrued insurance losses 733,461
(Decrease) increase due to retirement system (1,247,231) (1,247,231) (Decrease) increase due to OPEB (69,627) (69,627)
Compensated absence obligations (97,095) (21,414) 31,586 (86,923) (107,008) Net Cash Provided by (Used in) Operating Activities $6,343,426 ($87,085) $351,595 $6,607,936 $1,088,453

NONCASH TRANSACTIONS
Retirement of capital assets ($7,301)
See accompanying notes to basic financial statements
48 FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the government-wide financial statements, but are presented in separate Fiduciary Fund financial statements.

SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND
The Fund is used to account for the activities of the Successor Agency to the former Redevelopment Agency of the City of South San Francisco.

CUSTODIAL FUNDS are used to report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.
49 Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Cash and investments (Note 2) $1,697,719 $139,655
Accounts receivable
Interest receivable 19,610 396
Prepaid items
Advances to the City (Note 5) 2,150,152
Loans receivable (Note 14B) 80,572
Restricted cash and investments (Note 2) 19,879,521 20,221,759 Capital assets (Note 14C):

Nondepreciable 111,219
Depreciable, net accumulated depreciation 238,124
Total Assets 24,176,917 20,361,810

LIABILITIES
Accounts payable 1,261 2,500
Total Liabilities 1,261 2,500

NET POSITION
Held in trust for other purposes 24,175,656
Restricted for others 137,551
Restricted for bondholders 20,221,759
Total Net Position $24,175,656 $20,359,310
See accompanying notes to financial statements

CITY OF SOUTH SAN FRANCISCO

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2022
50 CITY OF SOUTH SAN FRANCISCO

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
Successor
Agency
Private Purpose
Trust Fund Custodial Funds

ADDITIONS
Intergovernmental $4,248,681
Plan contributions $32,041
Contributions from property owners 20,764,872
Interest and rentals (218,539) 6,893
Total Additions 4,030,142 20,803,806

DEDUCTIONS
Economic and Community Development 13,709,828
Professional services 20,100
Payments to bondholders 554,565
Depreciation 6,594
Total Deductions 13,716,422 574,665
Change in net position (9,686,280) 20,229,141

NET POSITION
Beginning of the year 33,861,936 130,169
End of the year $24,175,656 $20,359,310
See accompanying notes to financial statements
51 This Page Left Intentionally Blank

CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City of South San Francisco (the City) as the Primary Government, with its component units for which the City is considered financially accountable. The component units discussed below are included in the City's reporting entity because of the significance of their operational and financial relationships with the City.

B. Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and commissions that are controlled by the City Council. The basic financial statements include the City’s blended component units, entities for which the City is considered to be financially accountable. A blended component unit, although a legally separate entity, is in substance, part of the City’s operations and so data from this unit is combined with the City. The City’s following blended component units are described below.

The City of South San Francisco Capital Improvements Financing Authority is a joint exercise of powers authority created in 1991 between the City and the City of South San Francisco former Redevelopment Agency. The Capital Improvements Financing Authority is authorized to borrow money through the purchase or issuance of bonds, notes, or other obligations for the purpose of making loans to the City and other public entities to finance capital improvements. The City Council members serve as the Board of Directors. The Capital Improvements Financing Authority did not have any activity during fiscal year 2022. Separate financial statements are not issued for the Capital Improvements Financing Authority.

The Parking Authority of the City of South San Francisco was formed in October 2019 pursuant to the California Parking Law of 1949, Streets and Highways Code Section 32500, et seq. The City Council members serve as the Board of Directors. The financial activities of the Parking Authority are included in the Parking District Enterprise Fund. Separate financial statements are not issued for the Parking Authority.

The City of South San Francisco Public Facilities Financing Authority is a joint exercise of powers authority created in December 2019 between the City and the Parking Authority. The Public Facilities Financing Authority is authorized to borrow money through the purchase or issuance of bonds, notes, or other obligations for the purpose of making loans to the City or the Parking Authority and other public or private entities to finance capital improvements. The City Council members serve as the Board of Directors. The financial activities of the Public Facilities Financing Authority are included in the Capital Improvements Police Station, Capital Improvements Civic Campus and Capital Improvement Orange Memorial Park Capital Projects Funds. Separate financial statements are not issued for the Public Facilities Financing Authority. 53 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Description of Discrete Component Unit
The City of South San Francisco Conference Center Authority was established in 1992 to manage and operate the South San Francisco Conference Center. The Authority is governed by a Board of nine commissioners consisting of two Council members and seven representatives from various businesses appointed by City Council.

The Authority does not meet the criteria of a blended component unit, since the City Council is not the Authority’s governing body and the Authority does not provide services entirely to the City. However, the City is financially accountable and is able to impose its will on the Authority.

The Authority is therefore considered a discrete component unit with its financial data reported separately from the financial data of the City.

The City of South San Francisco Conference Center Authority financial statements may be obtained from the Authority at 255 South Airport Boulevard, South San Francisco, CA 94080.

D. Basis of Presentation
Government-wide Statements – The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Interfund transfers and amounts owed between funds within the primary government have been eliminated from the statements. Amounts representing interfund services and uses remain in the statements. These statements distinguish between the governmental and businesstype activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. 54 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements:

General Fund – Accounts for resources traditionally associated with government, such as administration, public safety, library, parks, maintenance, and recreation, outside of those accounted for in other funds.

Low and Moderate Income Housing Assets Special Revenue Fund – This fund was established to account for the activities related to the assets assumed by the City as Housing Successor to the housing activities of the former Redevelopment Agency of the City. The main source of revenue for this fund is the repayment of loans restricted for housing activities.

American Rescue Plan Act Special Revenue Fund – This Fund was established to account for the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal government’s response to the impacts of the COVID-19 pandemic.

Capital Improvement Capital Projects Fund – Accounts for expenditures associated with the acquisition, construction, or improvement of City-owned facilities and infrastructure. Funding comes from the General Fund, Special Revenue funds, grants and fees.

East of 101 Sewer Impact Fees Capital Projects Fund – These fees provide new development’s share of new and rehabilitated sewer collection and treatment facilities to serve the East of Highway 101 area.

Traffic Impact Fees Capital Projects Fund – These fees are to provide new developments share of new and expanded roadway and intersection improvements to serve the East of Highway 101 area and other areas within the City.

Child Care Impact Fees Capital Projects Fund – These citywide fees provide new development’s share of new and expanded childcare facilities to serve the City.

Capital Infrastructure Reserve Fund – Replacement, upgrade, and maintenance of the City’s infrastructure are backlogged, constituting a significant liability. Funds are set aside in this fund as part of the budget process and as part of the City’s reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks, buildings, facilities, streets, sidewalks, and storm water facilities).

55 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Improvement Police Station – Accounts for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting the new City police station located within the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds.

Capital Improvement Civic Campus – Accounts for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds.

Capital Improvement Orange Memorial Park Capital Projects Fund – Accounts for expenditures associated with the acquisition, construction and installation of certain capital improvements at the City-owned Orange Memorial Park and pay the costs incurred in connection with the issuance of the Series 2022A Bonds.

The City reported all enterprise funds as major funds in the accompanying financial statements.

The enterprise funds are:

Sewer Enterprise Fund – Accounts for user charges and debt proceeds supporting the operation, maintenance, and capital expansion of the wastewater collection and treatment system.

Parking District Fund – Accounts for meter and parking permit fees used to acquire and maintain parking facilities.

Storm Water Fund – Accounts for user charges sustaining the Storm Water Management Program mandated by state and federal authorities.

The City also reports the following fund types:

Internal Service Funds – These funds account for City services, self insurance, health and retirement benefits, and equipment replacement; all of which are provided to other departments on a cost-reimbursement basis.

Fiduciary Funds – The Fiduciary fund financial statements normally include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The financial activities of the funds are excluded from the government-wide financial statements. The City’s fiduciary funds represent a private purpose trust fund and custodial funds. The Successor Agency PrivatePurpose Trust Fund accounts for the accumulation of resources to be used for payments at appropriate amounts and times in the future. Custodial funds are used to account for assets held by the City on behalf of other agencies for other purposes. The City’s Custodial Funds includes the Employee Deferred Comp Trust Oversight Fund and the Community Facilities District 2021- 01, which accounted for payments of special assessment bonds.

56 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Basis of Accounting
The government-wide, proprietary, fiduciary, and discretely presented component unit financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, including lease liabilities, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Proceeds from long-term debt and financing through leases are reported as other financing sources.

Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental revenues, interest revenue, licenses and permits, charges for services, fines and forfeitures. Sales taxes collected and held by the state at year end on behalf of the City are also recognized as revenue. Other receipts and taxes are recognized as revenue when the cash is received.

Non-exchange transactions, in which the City gives or receives value without directly, receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenue. Thus, both restricted and unrestricted net position may be made available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

The City considers restricted shared state revenues such as gasoline taxes and public safety sales taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits, charges for services, and program grants as program revenues.

57 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Budgets, Budgetary Accounting, and Encumbrances
The City is not legally required to budget any of its funds, but does so to enhance City management's effectiveness in their financial planning efforts and to enhance control over the City's operations. Budgets are adopted on a modified accrual basis, except for encumbrances and for the Capital Improvement Fund. Encumbrances are considered expenditures in the year of the purchase order issuance. All Capital Projects Funds are adopted on a multi-year project basis with unexpended and unencumbered budgets reappropriated in the following year. The City operates under the general laws of the State of California (the State) and annually adopts a budget effective July 1 for the ensuing fiscal year for the General fund; Special Revenue funds, except the American Recovery Plan Act Special Revenue Fund, Developer Contributions Special Revenue Fund, Supplemental Law Enforcement Services Special Revenue Fund, City Programs Special Revenue Fund, and Affordable Housing Trust Special Revenue; Capital Projects Funds; and Enterprise funds.

The budget is adopted by the City Council and controlled at the department level for the General Fund and at the fund level or lower for all other funds with adopted budgets. From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year. The department heads may authorize transfers within one object category within the same department within a fund. The City Manager may authorize transfers between object categories and departments within a fund.

All appropriations lapse at year-end, except for capital projects and encumbrances. Original adopted budgets and final amended budgets are presented in the basic financial statements.

Supplementary budget appropriations were necessary during the year ended June 30, 2022.

Encumbrance accounting, under which, purchase orders, contracts and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of the budgetary process. Encumbrances outstanding at year-end are reported as a component of fund balances since they do not constitute expenditures or liabilities.

Encumbrances are reappropriated in the following year.

The budgetary comparison statements present comparisons of the legally adopted budget with actual charges to appropriations on a budgetary basis. In order to provide a meaningful comparison, the actual charges on a budgetary basis include encumbrances, which is a basis that differs significantly from those used to present financial statements in conformity with generally accepted accounting principles.

Certain indirect costs are included in program expenses reported for individual functions and activities.

58 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Expenditures in Excess of Appropriations – The City’s General Fund had the following departmental expenditures in excess of appropriations and other funds had expenditures in excess of appropriations for the year ended June 30, 2022:

Expenditures in
Excess of Budget
(Non GAAP
Legal Basis)
General Fund:

City Attorney $228,408
Non-departmental 1,211,827
Fire 3,083,113
Police 540,747
Public Works 347,536
Parks and Recreation 548,148
Non-Major Funds:

Community Development Block Grant Special Revenue Fund 216,389 Maintenance Districts Special Revenue Fund 10,617
Supplemental Law Enforcement Services Special Revenue Fund 64,536 City Programs Special Revenue Fund 1,049,683
Sufficient resources were available within each fund to finance these excesses.

I. Cash Equivalents – For purposes of the statement of cash flows, the City considers all highly liquid investments (including all restricted assets) with maturity of three months or less when purchased to be cash equivalents. The City maintains a cash and investment pool that is available for use by all funds. As the proprietary funds' share of this pool is readily available when needed, such share is also considered to be cash equivalent. Deposit assets in the proprietary funds are related to insurance and benefits and are not considered cash equivalents for purposes of the statement of cash flows.

J. Inventory and Prepaid Items – consist of consumable supplies. Inventory is stated at cost (firstin, first-out method). The costs are recorded as expenditures at the time the individual inventory or prepaid item is consumed. Reported inventory and prepaid items are equally offset by a fund balance reservation, which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets.

K. Capital Assets – Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are valued at acquisition value. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available except for intangible right to‐use lease assets, the measurement of which is discussed in Note 10 below.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.
59 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Depreciation is provided using the straight line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City and Authority have assigned the useful lives listed below to capital assets and right to use leased building:

Buildings 50 years
Clean water facilities and transmission lines 40 years
Improvements 30 years
Machinery and equipment 5-20 years
Furniture and fixtures 12 years
Infrastructure 20-40 years
Right to use leased building 30 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.

The capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other equipment that is not a vehicle.

L. Vacation and Sick Pay – are accrued as earned. Upon termination, employees are paid for all unused vacation at their current hourly rates. After five to twenty years of employment, one half of accumulated sick leave becomes vested, up to a maximum amount as specified under labor contract provisions. The vested portion is available for current use or, if unused, is payable at termination or retirement.

The long-term portion of the liability for compensated absences for governmental fund type operations is recorded as compensated absences in the government-wide financial statements. The portion expected to be permanently liquidated is recorded in the Health and Retirement Benefits Internal Service Fund. Proprietary fund liabilities are recorded within their respective funds.

The changes of the compensated absences were as follows:

Governmental Business-Type
Activities Activities Total
Beginning Balance $9,034,773 $876,995 $9,911,768
Additions 6,367,587 630,228 6,997,815
Payments (6,937,466) (717,151) (7,654,617)
Ending Balance $8,464,894 $790,072 $9,254,966
Current Portion $5,432,020 $589,258 $6,021,278
Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities compensated absences is liquidated primarily by the Health and Retirement Benefits Internal Service Fund.

60 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Property Tax Levy, Collection and Maximum Rates – State of California Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed 1% of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred, or substantially improved. The State Legislature has determined the method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and other districts. The County of San Mateo assesses properties, bills for and collects property taxes on the schedule that follows:

Secured Unsecured

Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31) 50% on February 1 (April 10)
The term "unsecured" refers to taxes on personal property other than land and buildings. These taxes are secured by liens on the property being taxed.

Property taxes levied are recorded as revenue and receivables when they are collected during the fiscal year of levy or within 60 days of year-end.

N. Properties held for redevelopment – is stated at the lower of historical cost or net realizable value (equal to agreed upon sales price if a disposition and development agreement has been reached with a developer).

O. Unbilled Services – for the Sewer Rental Enterprise Fund are accrued at year-end.

P. Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet reports a separate section for deferred inflows of resources.

This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

61 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

R. Use of Estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent asset and liabilities at the dates of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting periods. Actual results could differ from those estimates.

S. New and Renamed Funds

In fiscal year 2021-2022, the City established the following funds:

The Capital Improvement Orange Memorial Park Capital Projects Fund accounts for expenditures associated with the acquisition, construction and installation of certain capital improvements at the City-owned Orange Memorial Park and pay the costs incurred in connection with the issuance of the Series 2022A Bonds.

The Library Impact Capital Projects Fund accounts for citywide fees to provide new development’s share of the expansion, rehabilitation and replacement of library facilities and collections to accommodate the increased demand for library services caused by future development
The Oyster Point CFD Custodial Fund accounts for Community Facilities District No. 2021-01 special assessment collections and debt service payments.

The 2020 A Bonds Debt Service Fund was renamed the Debt Service Fund.

62 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) T. New Accounting Pronouncement

In June 2017, the Governmental Accounting Standards Board issued Statement No. 87, Leases.

The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right‐to‐use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange‐like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meets this definition should be accounted for under the leases guidance, unless specifically excluded in this Statement.

The pronouncement became effective, and as disclosed in Note 10 to the financial statements required a prior period restatement for the cumulative effect on the financial statements. The beginning balances of leases receivable and deferred inflows of resources related to leases for the City were $15,344,334 as of July 1, 2021 and restated and increased the balances in that amount, and the net effect on beginning net position and fund balance was zero. In addition, the Conference Center Authority’s beginning balances of right to use leased assets and the lease liability were increased and restated in the amounts of $1,948,783 and $2,748,483, respectively, and the net position was reduced and restated in the amount of $799,700 as of July 1, 2021. See the Leases disclosure in Note 10.

NOTE 2 – CASH AND INVESTMENTS
The City’s goal is to invest at the maximum yield, consistent with safety and liquidity, while individual funds can process payments for expenditures at any time.

A. Policies
The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the Trust Department of a bank as the custodian of certain City managed investments, regardless of their form.

California Law requires banks and savings and loan institutions to pledge government securities with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a fair value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.

63 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

B. Classification
Cash and investments as of June 30, 2022 are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements.

Financial Statement Presentation:

Statement of Net Position:

City of South San Francisco:

Cash and investments available for operations $264,820,152 Restricted cash and investments 144,489,758
Total Primary Government cash and investments 409,309,910 Statement of Fiduciary Assets:

Cash and investments available for operations 1,837,374 Restricted cash and investments 40,101,280
Total Fiduciary cash and investments 41,938,654
Conference Center:

Cash and investments available for operations 3,374,045 Total South San Francisco
Conference Center cash and investments 3,374,045
Total cash and investments $454,622,609
The City does not allocate investments by fund. Each proprietary fund’s portion of Cash and Investments Available for Operations is in substance a demand deposit available to finance operations, and is considered a cash equivalent in preparing the statement of cash flows.

64 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy

The City’s investment policy and the California Government Code allow the City to invest in the following provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where it is more restrictive:

Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality (A) of Portfolio in One Issuer U.S. Treasury Securities 5 years N/A No Limit No Limit
Federal Agency or U.S.

Sponsored Enterprise Obligations 5 years N/A No Limit 25% Supranational Obligations 5 years AA 30% 10%
Corporate Medium-Term Notes 5 years A 30% 5%
Asset-Backed Securities 5 years AA 20% 5%
Commercial Paper 270 days A1,P1 25% 5%
Negotiable Certificates of Deposit 5 years A-1 or A 30% 5% Repurchase Agreements 90 days AA No Limit No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A $75 million No Limit Money Market Mutual Funds N/A AAAm 20% 10%
Rating System, or its equivalent.
(A) The City's Investment Policy includes credit ratings provided by Standard and Poor's Investment

65 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and the Successor Agency to the former Redevelopment Agency must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if the City or Successor Agency fail to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinance bond indentures or State statute. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:

Minimum Maximum
Maximum Credit Percentage
Authorized Investment Type Maturity Quality of Portfolio U.S. Treasury Obligations N/A N/A No Limit
Federal Agency or U.S. Government
Sponsored Enterprise Obligations N/A N/A No Limit
Federal Housing Administration Debentures N/A N/A No Limit Bankers Acceptances 30 days A-1 or A-2 No Limit
Commercial Paper 270 days A1,P1 No Limit
Negotiable Certificates of Deposit 5 years A-1 or A No Limit Guaranteed Investment Agreements N/A A1,P1 No Limit
Municipal Obligations N/A Aaa No Limit
State Obligations N/A A2 No Limit
Money Market Mutual Funds N/A AAAm No Limit
Repurchase Agreements 90 days AA No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A No Limit

E. Investments Authorized by the Authority
The City of South San Francisco Conference Center Authority follows the California Government Code which authorizes an agency to invest in their own bonds, certain time deposits, obligations of the U.S. Treasury, agencies and instrumentalities, commercial paper, bankers’ acceptances with maturities not to exceed 270 days, and medium-term notes issued by corporations operating within the U.S., commercial paper rated P-1 or higher by Moody’s or A-1 by Standard & Poor’s commercial paper record, repurchase agreements of obligations of the U.S. Government or its agencies for a term of one year or less and the Local Agency Investment Fund.

66 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City also manages its interest rate risk is by holding most investments to maturity, thus reversing unrealized market gains and losses.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:

Remaining maturity
Less than One to Five
1 year Years Total
City and Fiduciary:

U.S. Treasury Notes $2,099,668 $52,601,590 $54,701,258
Federal Agency Securities 8,459,753 33,990,359 42,450,112 Local Agency Investment Fund 199,044,480 199,044,480
Money Market Funds 58,100,862 58,100,862
Corporate Medium Term Notes 499,974 46,106,533 46,606,507 Negotiable Certificates of Deposit 3,989,919 3,989,919
Asset-Backed Securities 212,664 22,608,817 22,821,481
Supranational Obligations 499,666 6,188,331 6,687,997
South San Francisco Conference Center:

Local Agency Investment Fund 2,963,633 2,963,633
Total Investments $275,870,619 $161,495,630 437,366,249 Cash in Banks and on Hand - City of South San Francisco 16,845,948 Cash in Banks and on Hand - South San Francisco Conference Center 410,412 Total Cash and Investments $454,622,609
The City is a 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 City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2022, these investments have an average maturity of 311 days.

Money market funds are available for withdrawal on demand and as of June 30, 2022 have an average maturity of 43 to 49 days.
67 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
G. 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 actual rating as of June 30, 2022, for each of the Primary Government’s investment types as provided by Moody’s investment rating system, except as noted:

Investment Type Aaa Aaa-mf Aa1-Aa3 A1-A3 P-1 Total
City and Fiduciary:

Federal Agency Securities $42,450,112 $42,450,112
Money Market Funds $58,100,862 58,100,862
Corporate Medium Term Notes 2,130,720 $7,229,229 $37,246,558 46,606,507 Negotiable Certificates of Deposit $3,989,919 3,989,919 Asset-Backed Securities 12,183,362 12,183,362
Supranational Obligations 6,687,997 6,687,997
Totals $63,452,191 58,100,862 $ 7,229,229 $ 37,246,558 $ 3,989,919 $ 170,018,759 City and Fiduciary:

Not rated:

Asset-Backed Securities 10,638,119 (A)
Local Agency Investment Fund 199,044,480
Exempt from credit rating disclosure:

U.S. Treasury Notes 54,701,258
Not rated:

Local Agency Investment Fund 2,963,633
Total Investments $437,366,249
South San Francisco Conference Center:
(A) Investments are not rated by Moody’s, but are rated AAA by Standard and Poor’s or Fitch investment rating systems.

68 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
H. Fair Value Hierarchy
The City categorized its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2022:

Level 2 Total
Investments by Fair Value Level:

City and Fiduciary:

U.S. Treasury Notes $54,701,258 $54,701,258
Federal Agency Securities 42,450,112 42,450,112
Corporate Medium Term Notes 46,606,507 46,606,507
Negotiable Certificates of Deposit 3,989,919 3,989,919
Asset Backed Securities 22,821,481 22,821,481
Supranational Obligations 6,687,997 6,687,997
Totals $177,257,274 177,257,274
Investments Measured at Amortized Cost:

City and Fiduciary:

Money Market Mutual Funds 58,100,862
Investments Exempt from Fair Value Hierarchy:

City and Fiduciary:

Local Agency Investment Fund 199,044,480
South San Francisco Conference Center:

Local Agency Investment Fund 2,963,633
Total Investments $437,366,249
All Investments classified in Level 2 of the fair value hierarchy are valued using various pricing techniques maintained by Interactive Data Pricing, including benchmark curves, sector groupings and matrix pricing. These prices are obtained from various pricing sources by the City’s investment manager. Money market funds were reported at amortized cost.

69 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CAPITAL ASSETS
A. Capital Asset Changes – Changes in capital assets during the fiscal year consist of:

Balance 6/30/2021
Additions and
Adjustments
Retirements and
Adjustments Transfers Balance 6/30/2022
Governmental activities
Capital assets not being depreciated:

Land $66,729,001 $5,520,422 $72,249,423
Construction in Progress 160,376,869 86,212,054 ($4,730,560) 241,858,363 Total capital assets not being depreciated 227,105,870 91,732,476 (4,730,560) 314,107,786 Capital assets being depreciated:

Buildings and Improvements 97,370,638 97,370,638
Infrastructure - Streets 200,865,274 4,730,560 205,595,834 Infrastructure - Storm Drains 8,927,492 8,927,492
Infrastructure - Traffic Control Devices 12,591,370 12,591,370 Equipment and Vehicle 7,390,599 7,390,599
Furniture and Fixtures 2,614,215 2,614,215
Total capital assets being depreciated 329,759,588 4,730,560 334,490,148 Less accumulated depreciation for:

Buildings and Improvements (44,877,725) (2,572,139) (47,449,864) Infrastructure - Streets (116,531,398) (5,153,778) (121,685,176) Infrastructure - Storm Drains (3,980,061) (204,500) (4,184,561) Infrastructure - Traffic Control Devices (4,729,238) (510,781) (5,240,019) Equipment and Vehicle (6,683,993) (83,154) (6,767,147)
Furniture and Fixtures (1,891,508) (87,167) (1,978,675) Total accumulated depreciation (178,693,923) (8,611,519) (187,305,442) Net Governmental Fund
Capital Assets Being Depreciated 151,065,665 (8,611,519) 4,730,560 147,184,706 Internal Service Fund Capital Assets
Capital assets being depreciated:

Equipment and Vehicle 17,138,859 424,683 ($185,212) 17,378,330 Accumulated depreciation (12,186,122) (967,562) 177,911 (12,975,773) Net Internal Service Fund Capital Assets
Being Depreciated 4,952,737 (542,879) (7,301) 4,402,557 Governmental activities capital assets, net $383,124,272 $82,578,078 ($7,301) $465,695,049 Total capital assets not being depreciated $227,105,870 $91,732,476 ($4,730,560) $314,107,786 Net capital assets being depreciated 156,018,402 (9,154,398) ($7,301) 4,730,560 151,587,263 Governmental activities capital assets, net $383,124,272 $82,578,078 ($7,301) $465,695,049 70 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2021 Additions Retirements Transfers June 30, 2022 Business-type activities
Capital assets, not being depreciated:

Land $794,587 $794,587
Construction in Progress 68,932,413 $15,051,042 83,983,455 Total capital assets not being depreciated 69,727,000 15,051,042 84,778,042 Capital assets being depreciated:

Buildings and Improvements 80,173,059 80,173,059
Clean Water Facilities and Lines 79,862,094 79,862,094
Infrastructure - Storm Drains 6,216,365 6,216,365
Infrastructure - Streets 7,377,546 7,377,546
Equipment and Vehicle 18,455,546 18,455,546
Furniture and Fixtures 31,154 31,154
Total capital assets being depreciated 192,115,764 192,115,764 Less accumulated depreciation for:

Buildings and Improvements (22,816,048) (2,056,389) (24,872,437) Clean Water Facilities and Lines (35,054,212) (1,936,594) (36,990,806) Infrastructure - Storm Drains (1,570,732) (187,980) (1,758,712) Infrastructure - Streets (2,469,401) (209,570) (2,678,971) Equipment and Vehicle (13,466,816) (716,906) (14,183,722) Furniture and Fixtures (31,154) (31,154)
Total accumulated depreciation (75,408,363) (5,107,439) (80,515,802) Net capital assets being depreciated 116,707,401 (5,107,439) 111,599,962 Business-type activities capital assets, net $186,434,401 $9,943,603 $196,378,004 Balance
June 30, 2021 Balance
(as restated) Additions Retirements June 30, 2022
Component Unit:

South San Francisco Conference Center
Depreciable:

Buildings and Improvements $10,909,288 $10,909,288
Furniture and Fixtures 950,814 ($18,421) 932,393
Machinery and Equipment 582,722 $40,220 (23,227) 599,715 Total Depreciable 12,442,824 40,220 (41,648) 12,441,396 Right of Use Assets:

Leased Land 1,948,783 1,948,783
14,391,607 40,220 (41,648) 14,390,179
Less accumulated depreciation and
amortization
Depreciable (9,904,838) (592,036) 41,648 (10,455,226)
Leased Land (278,398) (278,398)
(9,904,838) (870,434) 41,648 (10,733,624)
Component Unit Capital Assets, Net $4,486,769 ($830,214) $3,656,555 71 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CAPITAL ASSETS (Continued)
B. Capital Asset Contributions – Some capital assets may have been acquired using federal and State grant funds, or were contributed by developers or other governments. Contributed capital assets are valued at their estimated acquisition value on the date contributed. Generally accepted accounting principles require that these contributions be accounted for as revenues at the time the capital assets are contributed.

C. Depreciation Allocation – Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows:

Governmental Activities
Governmental functions
General government $729,438
Fire 316,406
Police 64,491
Public works 6,815,642
Parks and recreation 566,692
Library 67,241
Economic and community development 51,609
Total Governmental Functions 8,611,519
Internal Service Funds 967,562
Total Governmental Activities $9,579,081
Business-Type Activities
Sewer Enterprise $4,814,962
Parking District 252,638
Storm Water 39,839
Total Business-Type Activities $5,107,439
NOTE 4 – INTER-FUND TRANSACTIONS
A. Internal Balances
Internal balances are presented in the entity-wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities.

72 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 4 – INTER-FUND TRANSACTIONS (Continued)
B. Inter-Fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or shortterm loans expected to be repaid in the next fiscal year.

Due From Other Fund Due to Other Fund Amount
General Fund Capital Improvement Capital Projects Fund $430,000 Storm Water Enterprise Fund 630,000
Community Development Block Grant Special Revenue Fund 210,000 $1,270,000
C. Transfers
Transfers between funds during the fiscal year ended June 30, 2022 were as follows:

FROM FUND (OUT) TO FUND (IN) AMOUNT
General Fund Capital Improvements Capital Projects Fund $3,642,829 Capital Infrastructure Reserve Capitol Projects Fund 8,500,000 Capital Improvements Civic Campus Capital Projects Fund 102,542 Non-Major Governmental Funds 8,287,833
Storm Water Enterprise Fund 250,000
Internal Service Fund 452,406
American Rescue Plan Act Special Revenue Fund General Fund 2,560,000 Capital Improvement Capital Projects Fund 84,259
Capital Improvements Capital Projects Fund Non-Major Governmental Funds 2,362 East of 101 Sewer Impact Fees Capital Projects Fund Sewer Enterprise Fund 107,818 Traffic Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 5,929,676 Child Care Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 99,499 Capital Infrastructure Reserve Capital Projects Fund General Fund 1,104,832 Low and Moderate Income Housing Asset Special Revenue Fund 2,784 Capital Improvement Capital Projects Fund 1,107,190
Non-Major Governmental Funds 34,464
Sewer Enterprise Fund 234,720
Parking District Enterprise Fund 1,440
Storm Water Enterprise Fund 36,720
Internal Service Fund 619,440
Non-Major Governmental Funds General Fund 1,098,897
Capital Improvement Capital Projects Fund 3,606,224
Sewer Enterprise Fund 147,072
Storm Water Enterprise Fund 698,541
Internal Service Fund 60,459
Sewer Enterprise Capital Improvement Capital Projects Fund 57,076 Total $38,829,083

73 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT
A. Current Year Transactions and Balances
A summary of governmental and business-type activities transactions for the fiscal year ended June 30, 2022 follows:

Authorized
and Balance at Balance at Current
Issued June 30, 2021 Additions Retirement June 30, 2022 Portion Governmental Activities
Lease Revenue Bonds:
2020A Police Station Project, 4.00 to 5.00% (1) $43,905,000 $42,970,000 $980,000 $41,990,000 $1,030,000 Plus: Unamortized bond premium 9,483,824 379,353 9,104,471 2021A Community Civic Campus Project, 4.00% (2) 86,410,000 86,410,000 2,210,000 84,200,000 2,155,000 Plus: Unamortized bond premium 18,116,565 724,663 17,391,902 2022A Orange Memorial Park Project, 4.00 to 5.25% (3) 65,420,000 $65,420,000 65,420,000 Plus: Unamortized bond premium 6,686,317 6,686,317
Total Lease Revenue Bonds 195,735,000 156,980,389 72,106,317 4,294,016 224,792,690 3,185,000 Direct Borrowing:
2007 Loans Payable to the Successor Agency (4) 3,595,152 1,445,000 2,150,152 Leases Financings (5):
2013 Fire Truck 285,529 140,892 144,637 144,637
Total Leases Financings 285,529 140,892 144,637 144,637 Total Direct Borrowing 3,880,681 1,585,892 2,294,789 144,637 Net Governmental Long-Term Debt $195,735,000 $160,861,070 $72,106,317 $5,879,908 $227,087,479 $3,329,637 Business-Type Activities
Revenue Bonds:
2005 Water and Wastewater Revenue Bonds, $6,000,000 $2,325,000 $345,000 $1,980,000 $360,000

2.75 to 4.75%, due 04/30/26 (6)
Direct Borrowing:
1999 State Water Resources Loan, 2.6%, due 8/1/22 (7) 47,721,252 6,300,086 3,109,618 3,190,468 3,190,468 2004 State Water Resources Loan, 2.5%, due 1/1/27 (7) 21,258,529 6,513,692 1,239,209 5,274,483 1,270,190 2008 State Water Resources Loan, 2.4%, (8) 9,164,505 4,179,619 480,127 3,699,492 491,650 2018 State Water Resources Loan, 1.8% (9) 53,403,000 43,487,062 $5,147,945 48,635,007 Total Direct Borrowing 131,547,286 60,480,459 5,147,945 4,828,954 60,799,450 4,952,308 Net Business-Type Long-Term Debt $137,547,286 $62,805,459 $5,147,945 $5,173,954 $62,779,450 $5,312,308 (1) 2020A Lease Revenue Bonds – In February 2020, the City of South San Francisco Public Facilities Financing Authority entered into a $43.9 million lease agreement to finance costs of the acquisition, construction, and installation of certain capital improvements constituting the new City police station, located within the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds. The Series 2020A Bonds are equally and ratably payable from base rental payments to be made by the City for the right to use certain real property consisting of a City-owned parking garage and a City-owned park. The lease agreement contains provisions that in an event of default, the lessor may exercise any and all remedies available to it under the lease agreement, including the right to enforce the terms of the lease.

74 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
(2) 2021A Lease Revenue Bonds – In May 2021, the City of South San Francisco Public Facilities Financing Authority entered into a $86.4 million lease agreement to finance costs of the acquisition, construction, and installation of certain capital improvements constituting a new City library, council chamber, parks and recreation facilities, and a community theater to be located within the City’s new Civic Center Campus, street and roadway improvements located within the City, solar equipment to be located on City property, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds.

The Series 2021A Bonds are equally and ratably payable from base rental payments to be made by the City for the right to use certain real property consisting of the same City-owned parking garage and City-owned park pledged under the 2020A Bonds and six additional properties, including the property on which the first two phases of the Community Civic Campus project is being constructed. The lease agreement contains provisions that in an event of default, the lessor may exercise any and all remedies available to it under the lease agreement, including the right to enforce the terms of the lease.
(3) 2022A Lease Revenue Bonds – In May 2022, the City of South San Francisco Public Facilities Financing Authority entered into a $65.4 million lease agreement to finance costs of the acquisition, construction and installation of certain capital improvements of the City to be located at the City-owned Orange Memorial Park and pay the costs incurred in connection with the issuance of the Series 2022A Bonds. The Series 2022A Bonds are equally and ratably payable from base rental payments to be made by the City for the right to use certain real property consisting of the same properties pledged under the 2021A Bonds. The lease agreement contains provisions that in an event of default, the lessor may exercise any and all remedies available to it under the lease agreement, including the right to enforce the terms of the lease. (4) As of June 30, 2022, the Oyster Point Improvements Impact Fund owed the Successor Agency (formerly the Merged Redevelopment Project Area Capital Project Fund) for developer fees in the amount of $3,595,152 for the Flyover and Hookramps Projects that were completed in prior years.

The outstanding balance will be paid off from the future developer fees. With the dissolution of the Agency effective January 31, 2012, the Successor Agency assumed the asset which the City is to repay. This payable is recorded as a long-term obligation (see also Note 14). Prior to the dissolution of all Redevelopment Agencies in California by the State, the former Redevelopment Agency (Agency) advanced $12,176,207 to the Oyster Point Improvement Impact Fee Capital Projects Fund (the Oyster Point Fund). The impact fees are collected according to a fee methodology adopted under the terms of AB 1600. The fees are assessed against commercial development in a specific geographic area that is primarily east of Highway 101 to repay the former Agency for the funds it advanced to the Oyster Point Fund to pay for freeway interchange improvements at Highway 101 and Oyster Point Blvd, and are assessed per an adopted Engineering report's formula that measures each new development's impact on the area's trip traffic. While the former Agency advanced the funds, the impact fee was put in place specifically to charge future developers for their share of traffic trips generated prior to the construction of the improvements. When the Agency was dissolved, the Successor Agency, and therefore, all local taxing entities, are entitled to receive future Oyster Point Impact fees collected by the City from developers. Future developers, not the City of South San Francisco, are legally obligated to pay the future fees until the liability owed to the Successor Agency is paid off as long as the fee continues to be levied and is in place. The repayment has significantly slowed since 2007, as development has subsided and fees assessed have therefore dropped. Management believes it may take 10-30 years or more before the Successor Agency is fully paid back.

75 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
(5) The City has entered into long-term lease financing agreements with various financing agencies. Under these leases, all leased assets shall be distributed to the City at the end of the lease terms and shall thereafter remain the sole property of the City. Therefore, these leases have been recorded at the present value of the future minimum lease payments at the date of inception of the lease, and the corresponding assets have been included in the Statement of Net Position as appropriate. Lease financing payments are made from revenues of the Equipment Replacement Internal Service Fund and the General Fund. The lease agreements contain provisions that in an event of default, the lessor may (a) seize the properties, (b) sell or lease the properties or (c) exercise any and all remedies available to it under applicable law, including the right to enforce the terms of the lease, recover damages from the breach of the lease, and rescind the lease as to any portion of or all of the properties.
(6) On October 25, 2005, the California Statewide Communities Development Authority issued 2005D Water and Wastewater Revenue Bonds. The City participated in the pooled bond sale and the City’s portion of the debt is $6,000,000. Proceeds were used to finance sewer system capital improvement.

The principal payments on the debt commenced in October 2006 and principal is due each October 1. The final principal payment is due on October 1, 2026. Interest payments ranging from the rates of 2.75% to 4.75% are payable semi-annually each April 1 and October 1.

As of June 30, 2022, the City is in compliance with the provisions of Article VI of the Installment Purchase Agreement associated with the 2005D Bonds.

The 1999 and 2004 State Water Resources Loans and the 2005D Water and Wastewater Revenue Bonds are secured by a pledge of net revenues of the City’s Sewer Enterprise Fund. Net Revenues available for debt service amounted to $8.3 million which represented coverage of 1.62 over the $5,126,802 in total debt service.
(7) The two loans were authorized by the State Water Resources Control Board (SWRCB) to improve and expand the City’s wastewater treatment plant. Loan proceeds were issued as the projects progressed and debt service payments commenced one year after project completion. The loan agreements include provisions that in an event of default, all principal payments shall be immediately due and payable, interests on all amounts owed shall be paid at the highest legal rate, any additional payments shall be made and SWRCB shall enforce its rights under the agreements by any judicial proceeding, whether in law or equity.
(8) 2008 State Water Resources Control Board Loan – In November 2007, the City approved the $11.8 million loan agreement with the SWRCB to finance the City’s Wet Weather Program project. Under the terms of the contract, the City has agreed to repay $11.8 million to the State in exchange for receiving $9.2 million in proceeds to be used to fund the Project. The difference between the repayment obligation and proceeds amounted to $2.6 million and represents insubstance interest on the outstanding balance. Debt service payments commenced on August 15, 2009.

76 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
(9) 2018 State Water Resources Control Board Loan – In September 2018, the City entered into a $53.4 million loan agreement with the SWRCB to finance the South San Francisco/San Bruno’s Water Quality Control Plant Wet Weather and Digester Project. A portion of this amount, $4 million, is anticipated to be forgiven on the date of completion of construction. For the remaining $49.4 million, under the terms of the loan agreement the City has agreed to repay $59.2 million to the State. The difference between the repayment obligation and proceeds amounted to $9.8 million and represents in-substance interest on the outstanding balance.

As of June 30,2022, the City has drawn down $48.6 million from SWRCB, with the remaining balance of $4.8 million expected to be drawn down in fiscal year 2023. There was no debt service payment required in fiscal year 2022, with the first debt service payment due in fiscal year ending 2024. Future debt service is expected to average $3 million per year through fiscal year 2043.

In the event default has occurred, the City shall, upon demand, immediately accelerate the payment of all principal owed under this loan agreement, if any, which shall be immediately due and payable; pay interest at the highest legal rate on all amounts owed; and pay any additional payments as defined in the loan agreement.

The 2008 and 2018 loans are secured by a pledge of sewer service charge revenues of the City’s Sewer Enterprise Fund. Sewer service charge revenues available for debt service amounted to $22.6 million which represented coverage of 42 over the $538,642 in debt service.

B. Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt with specified repayment terms:

Governmental Activities Business-Type Activities
For the Year Lease Revenue Bonds
2005 Water and
Wastewater Revenue Bonds
Ended June 30 Principal Interest Principal Interest
2023 $3,185,000 $8,280,065 $360,000 $90,000
2024 3,320,000 8,205,338 375,000 71,625
2025 5,170,000 8,058,737 395,000 52,375
2026 5,410,000 7,826,538 415,000 32,125
2027 5,650,000 7,580,287 435,000 10,875
2028-2032 32,225,000 33,938,388
2033-2037 39,855,000 26,306,437
2038-2042 49,280,000 16,877,788
2043-2047 47,515,000 5,414,012
$122,487,590 $1,980,000 $257,000 191,610,000
Plus: Unamortized bond premium 33,182,690
$224,792,690
77 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
Future debt service requirements, including interest and leases financings, but excluding the 2007 Loan payable to the Redevelopment Successor Agency and the 2018 State Water Resources Loan at June 30, 2022, were as follows:

For the Year Governmental Activities Business-Type Activities Ended June 30 Principal Interest Principal Interest
2023 $144,637 $2,870 $4,952,308 $266,607
2024 1,805,393 145,017
2025 1,850,025 105,421
2026 1,895,761 64,842
2027 540,574 23,253
2028-2032 1,120,382 23,621
Totals 144,637 $2,870 12,164,443 $628,761
2007 Loans Payable 2,150,152
2018 State Water Resources Loan 48,635,007
$2,294,789 $60,799,450
Direct Borrowings
Lease financing agreements are issued for the purpose of financing the construction or acquisition of projects defined in each leasing arrangement. Projects are leased to the City for lease payments which, together with unspent proceeds of the leasing arrangement, will be sufficient to meet the debt service obligations of the leasing arrangement. At the termination of the leasing arrangement, title to the project will pass to the City.

Leasing arrangements are similar to debt; they allow investors to participate in a share of guaranteed payments which are made by the City. Because they are similar to debt, the present value of the total of the payments to be made by the City is recorded as long-term debt. The City’s leasing arrangements are included in long term obligations discussed above.

A summary of capital assets leased through the issuance of leasing arrangements follows:

Original
Leasing Arrangement Fund/Activity Cost
Capital Leases Governmental Activity $5,842,799
C. Legal Debt Margin
The City is subject to a debt limit that is 3.75% of the total assessed value of property, net of exempt real property. At June 30, 2022, that amount was $924,439,440. As of June 30, 2022, the City did not have any outstanding debt applicable to the limit.

D. Debt without City Commitment
In April 2022 the Community Facilities District No. 2021-01 Special Tax Bonds, Series 2022 in the amount of $19,685,000 were issued by the City of South San Francisco Community Facilities District No. 2021-01. The City is the collecting and paying agent for the debt issued by the District, but has no direct or contingent liability or moral obligation for the payment of this debt.

As of June 30, 2022 the outstanding balance of the issue was $19,685,000. 78 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 6 – NET POSITION AND FUND BALANCES
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter.

Unrestricted describes the portion of Net Position which is not restricted to use.

B. Fund Balance
The City’s fund balances are classified in accordance with generally accepted accounting principles which require the City to classify its fund balances based on spending constraints imposed on the use of resources.

For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint.

Nonspendables represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances have constraints imposed by Council Resolution of the City Council which may be altered only by Council Resolution of the City Council. Nonspendable amounts subject to council commitments are included along with spendable resources.

79 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. The City Council had delegated authority to the Finance Director to assign fund balances which are not otherwise restricted or committed. This category includes nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.

Minimum Fund Balance Policies – The City’s Reserve Policy is to have the General Fund Reserves equal to at least two months of operating revenues of 15% and up to 20%, which is in alignment with GFOA best practices. Included is an emergency reserve that reflects 2% of the general fund operating expenditures budget as well as an economic contingency which is 7% of general fund revenues. Funds in excess of these requirements will continue to be earmarked for paying down long-term liabilities, such as the Retiree Health/Other Post-Employment Benefits (OPEB) or for Infrastructure and Facilities Replacement needs.

Detailed classifications of the City’s Fund Balances, as of June 30, 2022, are below:

Low and Moderate East of 101
General Income Housing Capital Sewer Traffic
Fund Balance Classifications Fund Assets Improvement Impact Fees Impact Fees Nonspendables:

Items not in spendable form:

Inventory and prepaid items $4,099
Total Nonspendable Fund Balances 4,099
Restricted for:

Sewer Impact Fees $4,872,806
Traffic impact fees projects $24,761,557
Civic campus projects $16,847,198
Low and moderate housing projects $3,029,092
Redevelopment and community development activities 14,763,033 Total Restricted Fund Balances 14,763,033 3,029,092 16,847,198 4,872,806 24,761,557 Committed for:

Capital projects 4,244,813
Local services 11,839,164
Total Committed Fund Balances 16,083,977
Assigned to:

Capital projects 7,482,439
Total Assigned Fund Balances 7,482,439
Unassigned:

General fund 38,313,108
Other fund deficits (1,437,892)
Total Unassigned Fund Balances 38,313,108 (1,437,892)
Total Fund Balances $76,646,656 $3,029,092 $15,409,306 $4,872,806 $24,761,557 Capital Project Funds
80 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Capital Project Funds
Capital
Capital Capital Capital Improvements Other
Child Care Infrastructure Improvements Improvements Orange Governmental Fund Balance Classifications (continued) Impact Fees Reserve Fund Police Station Civic Campus Memorial Park Funds Restricted for:

Child Care impact fees projects $13,901,164
Police station projects $468,782
Civic campus projects $37,280,365 $71,684,403
Gas Tax projects $287,907
Developer contributions projects 7,567,347
Community Development Block Grant projects 163,662
Maintenance districts projects 4,859,706
Transportation sales tax projects 3,713,678
City programs projects 10,908,572
Other Special Revenues projects 9,044,236
Capital projects activities 34,191,712
Total Restricted Fund Balances 13,901,164 468,782 37,280,365 71,684,403 70,736,820 Assigned to:

Capital infrastructure projects $24,889,824
Total Assigned Fund Balances 24,889,824
Total Fund Balances $13,901,164 $24,889,824 $468,782 $37,280,365 $71,684,403 $70,736,820 C. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities. Unexpended appropriations lapse at year-end and must be reappropriated in the following year. Encumbrances outstanding in governmental funds as of June 30, 2022, were as listed below:

Governmental funds: Amount
General Fund $7,482,439
Low and Moderate Income Housing Assets Special Revenue Fund 10,743 Capital Improvement Capital Projects Fund 27,517,978
Capital Infrastructure Reserve Capital Projects Fund 1,617,850 Capital Improvements Police Station Capital Projects Fund 47,722 Capital Improvements Civic Campus Capital Projects Fund 34,182,728 Other Governmental Funds 2,677,758
Total $73,537,218

81 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLANS
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. 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.

A. General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution.

CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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

82 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:

Miscellaneous
Classic Plan* Tier 2 Plan* PEPRA Plan
Prior to After On or after
Hire date April 25, 2010 April 25, 2010 January 1,2013
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
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 - 67 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 8% 7% 6.5%
Required employer contribution rates 9.99% 9.99% 9.99%
Required Unfunded Actuarial Liability Contribution $6,718,047 * Effective July 2021, Classic Plan and Tier 2 Plan members in the Executive Management Unit are required to pay an additional 2% for their share of pension costs.

Safety
Classic Plan ** Tier 2 Plan ** PEPRA Plan
Hire date Prior to
April 25, 2010
After
April 25, 2010
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 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 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9% 9% 11.5%
Required employer contribution rates 20.59% 20.59% 20.59% Required Unfunded Actuarial Liability Contribution $8,906,578 ** Effective October 2018, Classic Plan and Tier 2 Plan members in the Executive Management Unit are required to pay an additional 2% for their share of pension costs.

Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a monthly basis or the City can elect a lump sum payment option. The City’s required contributions for the unfunded liability in the Miscellaneous and Safety Plans for the year ended June 30, 2022 were $6,718,047 and $8,906,578, respectively, which were made under the lump sum payment option.

Employees Covered – As of the June 30, 2020 actuarial valuation date and the June 30, 2021 measurement date, the following employees were covered by the benefit terms for the Plans:

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 481 297 Inactive employees entitled to but not yet receiving benefits 396 104 Active employees 283 158
Total 1,160 559

83 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer Contribution rates may change if plan contracts are amended.

B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The long-term portion of governmental activities net pension liability is liquidated primarily by the General Fund. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions – The total pension liabilities as of the June 30, 2021 measurement date were based on the following actuarial assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Salary Increase
Investment Rate of Return
Mortality
Post Retirement Benefit Increase
(1) Actuarial assumptions are the same for all benefi tiers (Classic Tier 1, Classic Tier II, and PEPRA) (2) Depending on age, service and type of employment.
(3) Net of pension plan investment expenses, including inflation.

Miscellaneous and Safety (1)
6/30/2020
6/30/2021
Entry-Age Normal Cost Method

7.15%
(4) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

2.50%
(2)

7.15% (3)
The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter Derived using CalPERS Membership Data for all Funds (4)

2.75%
84 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefits payments of current plan members for all plans in the PERF. Therefore, the long- term expected rate of return on plan investment was applied to all periods of projected benefit payment to determine the total pension liability for each Plan.

The long- term expected rate of return on pension plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long- term expected rate of return, CalPERS took into account both short- term and long- term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the fund’s asset classes, expected compound (geometric) returns were calculated over the short- term (first 10 years) and the long -term (11+ years) using a buildingblock approach. Using the expected nominal returns for both short- term and long- term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short- term and long- term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted for assumed administrative expenses.

The table below reflects the long-term expected real rates of return by asset class.

Asset Class(a)
Assumed
Asset
Allocation
Real Return
Years 1 - 10(b)
Real Return
Years 11+(c)
Public Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100%
(a) In the CalPERS's Annual Comprehensive Financial Reports, Fixed income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period. 85 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
C. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan are as follows:

Miscellaneous Plan:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 (Measurement Date) $254,824,922 $167,734,633 $87,090,289 Changes in the year:

Service cost 4,274,015 4,274,015
Interest on the total pension liability 17,951,111 17,951,111 Changes of benefit terms
Chases of assumptions
Differences between actual and expected experience 1,018,943 1,018,943 Plan to plan resource movement
Contribution - employer 8,623,876 (8,623,876)
Contribution - employees 2,006,497 (2,006,497)
Net investment income 38,008,815 (38,008,815)
Benefit payments, including refunds of employee
contributions (13,832,759) (13,832,759)
Administrative expenses (167,557) 167,557
Other Miscellaneous Income/(Expense)
Net changes 9,411,310 34,638,872 (25,227,562)
Balance at June 30, 2021 (Measurement Date) $264,236,232 $202,373,505 $61,862,727 Safety Plan:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 (Measurement Date) $359,168,480 $240,958,874 $118,209,606 Changes in the year:

Service cost 7,072,216 7,072,216
Interest on the total pension liability 25,441,168 25,441,168 Changes of benefit terms
Chases of assumptions
Differences between actual and expected experience 1,772,836 1,772,836 Plan to plan resource movement
Contribution - employer 12,413,770 (12,413,770)
Contribution - employees 2,893,339 (2,893,339)
Net investment income 54,912,645 (54,912,645)
Benefit payments, including refunds of employee
contributions (17,313,787) (17,313,787)
Administrative expenses (240,703) 240,703
Other Miscellaneous Income/(Expense)
Net changes 16,972,433 52,665,264 (35,692,831)
Balance at June 30, 2021 (Measurement Date) $376,140,913 $293,624,138 $82,516,775 Grand Total - Both Plans $640,377,145 $495,997,643 $144,379,502

86 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $95,542,624 $133,020,062
Current Discount Rate 7.15% 7.15%
Net Pension Liability $61,862,727 $82,516,775
1% Increase 8.15% 8.15%
Net Pension Liability $33,959,512 $40,965,167
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2022, the City recognized pension expense of $4,436,373 and $5,970,893 for the Miscellaneous and Safety Plans, respectively, for total pension expense of $10,407,266. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $9,491,640 Changes of assumptions
Differences between actual and expected experience 1,100,830 Net differences between projected and actual earnings on plan investments ($18,914,071)
Total $10,592,470 ($18,914,071)
Safety Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $13,387,919 Changes of assumptions
Differences between actual and expected experience 1,671,857 Net differences between projected and actual earnings on plan investments ($27,272,371)
Total $15,059,776 ($27,272,371)
Grand Total $25,652,246 ($46,186,442)
87 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
$22,879,559 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 ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Plan:

Year Ended Annual
June 30 Amortization
2023 ($3,928,150)
2024 (4,110,738)
2025 (4,542,742)
2026 (5,231,611)
Safety Plan:

Year Ended Annual
June 30 Amortization
2023 ($5,867,151)
2024 (5,672,976)
2025 (6,504,757)
2026 (7,555,630)
E. Subsequent Event – Reduction of CalPERS Discount Rate On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy approved by the CalPERS Board in 2015, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the CalPERS Board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.80% (net of investment expense, but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the CalPERS Board. These new assumptions will be reflected in the CalPERS GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
88 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 8 – DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this Plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the Plan. The City does not make any contributions to the Plan.

The City has no liability for any losses incurred by the Plan and does not participate in any gains, but does have the duty of due care that would be required of an ordinary prudent investor. The City has a contract with Empower Retirement to manage and invest the assets of the Plan. The assets in the Plan are the sole property of the participants or their beneficiaries. Since the assets held under the Plan are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements. The Plan requires investments to be stated at fair value and it requires all gains and losses on Plan investments to accrue directly to participant accounts.

The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City’s property and are not subject to City control, they have been excluded from these financial statements.

NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans The City provides certain health care benefits for all employees who retire after attaining age 50 with at least five years of service or disability at any age. The City provides certain health care benefits for those employees hired prior to April 25, 2010. In order to reduce the City’s OPEB obligations over time, the City changed to a defined contribution post-retirement health plan for employees hired as of April 25, 2010 or after. For those new hires, the City is now providing a medical after retirement health plan (MARA), and contributes 1.5% of salary for those employees.

B. Defined Benefit Plan Description
The City’s Post Employment Benefit Plan for employees hired prior to April 25, 2010 is an agent multiple-employer defined benefit OPEB plan.

The City joined the California Employers’ Retiree Benefit Trust (CERBT), an agent multipleemployer plan administered by CalPERS, consisting of an aggregation of single-employer plans. The CERBT issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703.

89 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
Benefits provided – The following is a summary of Plan benefits by employee group as of June 30, 2022:

Eligibility • Hired < 4/25/2010
• Retire directly from City and elect coverage:
• Age 50 and 5 years City service or
• Disability retirement with 5 years City service
Benefit • City pays single premium up to largest HMO single premium Cap for 2021/22:
- $1,430.80/month pre-65 (Blue Shield)
- $785.04/month post-65 Medicare eligible (Blue Shield) - $1,971.53/ month post-65 not Medicare eligible (Kaiser) • Medicare ineligible retirees allowed to stay in their preMedicare premium plans after age 65 Surviving Spouse
Benefit
• Participation with premium payment
• AFSCME, Local 1569, Mid-Management, IAFF
 surviving spouses covered 2 months following death of Other OPEB • City also reimburses Medicare Part B
• No City-paid contribution for dental, vision, or life For the year ended June 30, 2022, the City’s contributions to the Plan were $4,810,361.

Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2020:

Active employees 181
Inactive employees or beneficiaries currently
receiving benefit payments 368
Total 549
C. OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to 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 OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the California Employers’ Retiree Benefit Trust (CERBT). For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. The long-term portion of governmental activities net OPEB liability is liquidated primarily by the General Fund.

90 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
D. Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions:

Valuation Date • June 30, 2021
Measurement Date • June 30, 2021
Contribution Policy • City contributes $802,000 per year into trust Actuarial Cost Method • Entry Age Normal, Level Percentage of Payroll Amortization Method • Level dollar
Amortization Period • Average of 21 years remaining for 2021/22 • 6.25% at June 30, 2021
• 6.75% at June 30, 2020
• Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust.

Inflation • 2.50% per annum
Salary Increases • Aggregate - 2.75% annually
• Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend • Non-Medicare - 6.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076 and later years
• Medicare (Non-Kaiser) - 5.85% for 2022, decreasing to an ultimate rate of 3.75% in 2076 and later years
• Medicare (Kaiser) - 4.75 for 2022, decreasing to an ultimate rate of 3.75% in 2076 and later years
Mortality, Retirement, Disability, Termination • CalPERS 1997-2015 Experience Study Mortality Improvement • Mortality projected fully generational with Scale MP-2021 Healthcare participation for future retirees • 100% if covered, 95% if waived Discount Rate and Long-Term Expected
Rate of Return on Assets
Actuarial Assumptions

91 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a buildingblock method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global equity 59.0% 4.56%
Fixed income 25.0% 0.78%
TIPS 5.0% 0.08%
Commodities 3.0% 1.22%
REITs 8.0% 4.06%
Total 100.0%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 6.25%
Discount Rate – The discount rate used to measure the total OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes of Assumptions – For the measurement date of June 30, 2022, the discount rate decreased from 6.75% to 6.25%, the inflation rate decreased from 2.75% to 2.50%, the payroll growth rate decreased from 3.00% to 2.75%, the medical trend rate for Kaiser Senior Advantage decreased from

7.0% to 6.75% and the mortality improvement scale was updated to Scale MP- 2021.

92 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
E. Changes in Net OPEB Liability
The changes in the net OPEB liability follows:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2020 Measurement Date $90,241,209 $25,868,613 $64,372,596 Changes Recognized for the Measurement Period:

Service Cost 1,515,601 1,515,601
Interest on the total OPEB liability 6,058,295 6,058,295 Changes in benefit terms
Differences between expected and actual experience (3,331,956) (3,331,956) Changes of assumptions 1,446,069 1,446,069
Contributions from the employer 4,810,361 (4,810,361)
Net investment income 7,140,915 (7,140,915)
Benefit payments (4,008,599) (4,008,599)
Administrative expenses (9,829) 9,829
Net changes 1,679,410 7,932,848 (6,253,438)
Balance at June 20, 2021 Measurement Date $91,920,619 $33,801,461 $58,119,158 Increase (Decrease)
F. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current discount rate:

Net OPEB Liability/(Asset)
Discount Rate -1% Current Discount Rate Discount Rate +1% (5.75%) (6.75%) (7.75%)
$70,042,838 $58,119,158 $48,248,701
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates as discussed in the assumptions above:

Net OPEB Liability/(Asset)
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase
$48,009,017 $58,119,158 $70,365,417

93 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
G. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized OPEB expense of $4,372,607. At June 30, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to the measurement date $4,868,877 Differences between actual and expected experience 483,000 ($2,183,006) Changes of assumptions 947,425 (808,048)
Net differences between projected and actual earnings on plan investments (3,831,526)
Total $6,299,302 ($6,822,580)
$4,868,877 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:

Year Annual
Ended June 30 Amortization
2023 ($1,800,034)
2024 (1,598,303)
2025 (916,853)
2026 (1,076,965)
H. Defined Contribution Plan
The City of South San Francisco funded HRA Plan is a defined contribution OPEB plan for employees hired on or after April 25, 2010. For those new hires, the City provides a medical after retirement health plan (MARA), and contributes 1.5% of salary for those employees. In addition, employees contribute to the MARA plan as directed by their respective bargaining unit’s Memorandum of Understanding or compensation plan.

The plan is administered by Matrix Trust Company. Employee contributions for the fiscal year totaled $397,012. Employer contributions of $493,299 were paid into the Defined Contribution Plan. No liability for the defined contribution has been included in the report since the City fully paid the annual required contribution. Since the assets held under this plan are not the City’s property and are not subject to claims by general creditors of the City, the assets have been excluded from these financial statements.

94 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES
A. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City recognizes lease receivable or liabilities with an initial, individual value of $1,000,000 or more, based on the present value of future lease payments remaining at the start of the lease.

Lessee – The City does not have any noncancellable leases of nonfinancial assets as of June 30, 2022, other than the financed purchase discussed in Note 5. The Conference Center Authority is a lessee for the noncancellable lease of the Conference Center from the City. At the commencement of a lease, City or Conference Center Authority recognize a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements.

At the commencement of a lease, the City or Conference Center Authority initially measures the lease liability at the present value of payments expected to be made during the lease term.

Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs.

Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.

Key estimates and judgments related to leases include how the City or Conference Center Authority determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
• The City or Conference Center Authority uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City or Conference Center Authority generally uses its respective estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City or Conference Center Authority is reasonably certain to exercise.

The City and Conference Center Authority monitor changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

Lessor – The City is a lessor for a noncancellable leases of buildings, billboards and facilities.

The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and fund financial statements.

95 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses 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.

B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2022 were:

Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
General Fund:

Conference Center $2,409,308 $2,404,923
Costco 4,165,186 4,107,234
Billboards 6,881,282 6,695,107
Low and Moderate Income Housing Assets Fund:

Magnolia 1,197,345 1,183,182
Total governmental activities leases receivable $14,653,121 $14,390,446

96 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
Conference Center – The Conference Center Authority, a discrete component unit, leases land from the City under an operating lease commencing on January 1, 1999, with a 30-year term from February 1, 1999, to January 31, 2029. The rent amount is subject to re-negotiation at the option of either party between January 1 and February 28, 2009 and 2019. The cost and carrying amount of leased land under this lease receivable is $5,040,000. The City recognized $343,560 in lease revenue and $82,454 in interest revenue during the current fiscal year related to this lease.

Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.

Costco – Price Club Associates leases the land for the Costco store on South Airport Boulevard from the City. Lease payments are based on a percentage of Costco’s gross annual sales, with minimum annual rent set at $400,000, payable in monthly installments of $33,333. In fiscal 2014, Costco exercised the option to extend the lease through fiscal year 2029, with an option for a 6 year extension through fiscal year 2035. The City recognized $328,579 in lease revenue and $129,373 in interest revenue during the current fiscal year related to this lease. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.

Billboards – The City leases digital billboard space to third parties under three lease agreements.

The original terms of the leases were thirty years and as of June 30, 2022, the leases had 22 to 29 years remaining. The rent is based on a minimum annual guaranteed payment, paid on an annual basis, which increases 15% every five years. The City recognized $252,169 in lease revenue and $208,007 in interest revenue during the current fiscal year related to these leases. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.

Magnolia – Magnolia Housing leases the land for Magnolia Plaza Senior Apartments from the City. Minimum lease payments are set at $51,800, and are payable through the fiscal year 2062.

The City recognized $29,580 in lease revenue and $36,383 in interest revenue during the current fiscal year related to this lease. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.

C. Lease Payable
The Conference Center Authority’s lease payable consists of the following as of June 30, 2022:

Balance
June 30, 2021 Balance Current
(as restated) Deductions June 30, 2022 Portion
Land Lease $2,748,483 $339,176 $2,409,307 $349,429
97 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
The Authority has a property lease agreement with the City of South San Francisco for 30 years expiring in 2029. Under the agreement, the City subleases to the Authority, the property in exchange for the annual lease payment for the use of land. During the fiscal year, the lease payments totaled $420,000. The total principal and interest paid during the year was $80,824 and $339,176, respectively. The initial present value of the right of use asset and lease liability, at a treasury bond rate of 3.00% over the thirty years, was $2,748,483. The balance of the right of use asset as of June 30, 2022 was $1,948,783, net of accumulated amortization, which is reported with the Authority’s capital assets in Note 3. The balance of the lease liability as of June 30, 2022 was $2,409,307. There are termination clauses included in the lease agreement, however management has determined that it is not likely that those clauses will be exercised.

Future minimum lease payments as of June 30, 2022 are as follows:

Year Ending Principal Interest
June 30 Payments Payments Total
2023 $349,429 $70,571 $420,000
2024 359,990 60,010 420,000
2025 370,871 49,129 420,000
2026 382,080 37,920 420,000
2027 393,629 26,371 420,000
2028-2029 553,308 16,692 570,000
$2,409,307 $260,693 $2,670,000
NOTE 11 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint organization is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint organization, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of this joint organization are not the City’s responsibility and the City does not have an equity interest in the assets of each joint organization except upon dissolution of the joint organization.

A. Oyster Point Marina
(OPM) was established in 1977 by the City and the San Mateo County Harbor District (Harbor District) for the purpose of expanding, improving and operating the Oyster Point Marina and Park. The governing board consists of two of the City's council members and two Harbor District commissioners. The Harbor District operates OPM. Operation of the Marina provides revenues for the marina's operations. The City retains title to the land; however, the City is not liable for any obligations of the San Mateo County Harbor District. Condensed unaudited financial information may be obtained from San Mateo County Harbor District, #1 Johnson Pier, Half Moon Bay, CA 94019.
98 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 11 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
B. Peninsula Traffic Congestion Relief Alliance (PTCRA) PTCRA was formed from the merger of the Inter City Transportation Systems Management Agency and Multi-City Transportation Systems Management Agency (MCTSMA) in 2000. The members are the cities of South San Francisco, Brisbane, Colma, Daly City, Half Moon Bay, Millbrae, Pacifica and San Bruno and seven other members for the purpose of mitigating traffic congestion. The governing board consists of one council member from each member city. The finance director of the City of San Carlos acts as the treasurer and controller of PTCRA. The individual cities are not liable for the debts, liabilities or obligations of PTCRA. Each member city has an equal interest in PTCRA. Condensed accrual basis unaudited financial information may be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos, CA 94070.

C. City/County Association of Governments (C/CAG)
C/CAG was established in 1990 by the County of San Mateo and the Cities of San Mateo County for preparation, adoption, monitoring and enforcing of Countywide state mandated plans. A Board of Directors consisting of one council member from each member city and one member from the County Board of Supervisors governs C/CAG. The city treasurer of San Carlos acts as the treasurer of C/CAG. The individual cities and the County are not liable for the debts, liabilities, or obligations of C/CAG. Condensed unaudited cash basis financial information may be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos, CA 94070.

NOTE 12 – RISK MANAGEMENT
A. Insurance Coverage
The City participates in Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA), a nonprofit benefit corporation established to provide liability insurance coverage, claims and risk management, and legal defense to its participating members. PLAN JPA provides $1,000,000 of self- funded general liability and automobile coverage (except $250,000 is for the Employee benefits Plan Administration liability) and $29,000,000 excess liability coverage per occurrence and is responsible for paying claims in excess of the City’s $100,000 self-insured retention. The Plan includes a per occurrence or wrongful act or employee benefit wrongful act up to $10,000,000 with two retained limits of $5,000,000. For the year ended June 30, 2022, the City paid PLAN JPA $2,036,357 in premiums and did not receive a refund of premiums paid in prior years. Financial statements may be obtained from PLAN JPA 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833.

The City has also purchased excess coverage insurance for worker’s compensation claims from Public Risk, Innovation, Solutions and Management (PRISM) (formerly CSAC Excess Insurance Authority (CSAC-EIA)). PRISM provides coverage up to statutory limits in excess of the City’s $500,000 self-insured retention. For the past five fiscal years, general liability and worker compensation settlements did not exceed insurance coverage. 99 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 12 – RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Self Insurance Internal Service Fund. Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

The City’s liability for uninsured claims is limited to workers’ compensation and general liability claims, as discussed above, and was estimated by management based on prior year’s claims experience as follows:

June 30, 2022 Fiscal Year
Workers' General 2020-2021
Compensation Liability Total Total
Balance, beginning of year $15,696,000 $53,797 $15,749,797 $14,965,224 Current year claims and changes in
estimates of prior years claims 2,608,615 282,672 2,891,287 3,637,605 Claims Paid (2,061,615) (96,211) (2,157,826) (2,853,032) Balance, end of year $16,243,000 $240,258 $16,483,258 $15,749,797 Current portion $2,807,000 $240,258 $3,047,258 $2,878,797 NOTE 13 – COMMITMENTS AND CONTINGENCIES
A. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs have been audited by the City’s independent auditors in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 100

CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 13 – COMMITMENTS AND CONTINGENCIES (Continued)
C. Miller Parking Garage
The Miller Parking Garage (“Parking Garage)”, constructed in 2011, is located at 329 Miller Avenue in the City. The Parking Garage consists of a five-level open-air concrete structure building of approximately 100,000 square feet with 244 parking spaces. Approximately 14,350 square feet of commercial and office space (the “Commercial Space”) is located on the ground floor of the Parking Garage.

In February 2020, the City sold the Commercial Space for $1,247,950. In connection with the sale of the Commercial Space, a condominium map was recorded with the County to create separate assessor parcel numbers for the Commercial Space and the balance of the property included within the Parking Garage. No rights to the parking spaces were granted to the owners of the Commercial Space in connection with its sale. However, the owners of the Commercial Space may use such spaces upon payment to the City of the applicable parking fees.

D. Construction Contract Dispute
Following a competitive bid process, the City awarded a contract for construction of certain improvements related to the Grand Boulevard Initiative. The project finished well past the contract completion date and the City withheld funds for late completion and to correct incomplete and defective work. The City and the contractor engaged a third-party mediator, but were unable to resolve the dispute at mediation in August 2022. The contractor filed a complaint in San Mateo County Superior Court on September 14, 2022, seeking $6,500,000 in compensatory damages, interest, and costs of suit. No trial date has been set as of November 2022. The City disputes the allegations and intends to vigorously pursue affirmative claims against the contractor. The City may be negatively impacted should the court rule in favor of the contractor, however any such impact cannot be determined at this time.

NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR

AGENCY ACTIVITIES
The activities of the Successor Agency are reported in the Successor Agency to the former Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.

On July 1, 2018, the duties of the South San Francisco Oversight Board transferred to a new San Mateo Countywide Oversight Board, which will now be responsible for overseeing the winddown affairs of all Successor Agencies in San Mateo County, including the Successor Agency to the South San Francisco Redevelopment Agency.

Information presented in the following footnotes represents assets and liabilities of the Successor Agency.

A. Cash and Investments
Cash and investments of the Successor Agency as of June 30, 2022 are discussed in Note 2 to the financial statements. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2022. 101

CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
B. Loans Receivable
The Successor Agency assumed the non-housing loans receivable of the former Redevelopment Agency as of February 1, 2012. The former Redevelopment Agency engaged in programs designed to encourage construction of or improvement to low-to-moderate income housing.

Under these programs, grants or loans were provided to homeowners or developers who agreed to expend these funds in accordance with the Agency’s terms.

C. Capital Assets
The Successor Agency assumed the capital assets of the former Redevelopment Agency as of February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their acquisition value. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding two years.

All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.

Depreciation of all capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on the balance sheet as a reduction in the book value of capital assets.

Depreciation is provided using the straight line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The Successor Agency has assigned the useful lives listed below to capital assets:

Buildings 50 years
Improvements 30 years
Machinery and equipment 5-20 years
Furniture and fixtures 12 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.

Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. The capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other equipment that is not a vehicle.
102

CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:

Balance Balance
June 30, 2021 Retirement June 30, 2022
Fiduciary activities
Capital assets not being depreciated:

Land $111,219 $111,219
Total capital assets not
being depreciated 111,219 111,219
Capital assets being depreciated:

Buildings and Improvements 329,671 329,671
Equipment and Vehicle 242,190 242,190
Furniture and Fixtures 21,506 21,506
Total capital assets being depreciated 593,367 593,367
Less accumulated depreciation for:

Buildings and Improvements (84,953) ($6,594) (91,547)
Equipment and Vehicle (242,190) (242,190)
Furniture and Fixtures (21,506) (21,506)
Total accumulated depreciation (348,649) (6,594) (355,243) Net capital assets being depreciated 244,718 (6,594) 238,124 Fiduciary activity capital assets, net $355,937 ($6,594) $349,343 D. Defeased Bonds
As of June 30, 2022, the outstanding balance of defeased debt was $3,905,000 for the 1997 Downtown /Central Redevelopment Tax Allocation Bonds.

E. Commitments And Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semiannually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
103

CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
State Asset Transfer Review
The activities of the former Redevelopment Agency and the Successor Agency were also subject to further examination by the State of California. The State Controller’s Office conducted a review of the propriety of asset transfers between the former Redevelopment Agency or the Successor Agency and any public agency that occurred on or after January 1, 2011. The results of that review were issued in July 2015 and although the review did identify ineligible transfers of assets from the former Redevelopment Agency to the City, the report reflected the current year and prior year transfers and made no further demands for the return of assets to the Successor Agency.
104

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years*

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Total Pension Liability
Service cost $3,449,973 $3,075,813 $3,079,994 $3,922,518 $4,001,207 $4,118,735 $4,267,487 $4,274,015 Interest on total pension liability 13,930,544 14,393,013 14,870,988 15,430,998 15,885,315 16,624,514 17,306,781 17,951,111 Changes of benefit terms
Changes of assumptions (3,374,655) 12,421,358 (1,361,078) Difference between expected and actual experience (1,567,798) (476,337) 1,958,164 187,342 2,853,948 1,771,483 1,018,943 Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759) Net change in total pension liability 8,092,542 2,119,130 6,388,816 22,167,646 6,548,097 10,840,309 10,008,794 9,411,310 Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922 Total pension liability - ending (a) $196,752,130 $198,871,260 $205,260,076 $227,427,722 $233,975,819 $244,816,128 $254,824,922 $264,236,232 Plan fiduciary net position
Contributions - employer $4,235,454 $4,546,984 $5,726,981 $5,228,454 $6,165,764 $6,851,659 $7,823,463 $8,623,876 Contributions - employee 1,466,176 1,411,273 1,622,453 1,720,600 1,727,041 1,816,507 1,883,698 2,006,497 Net investment income 21,712,340 3,221,551 687,860 15,616,363 12,458,090 10,240,873 8,084,207 38,008,815 Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759) Plan to plan resource movement (50,555) 229 (365) (20) (32) Administrative expense (160,268) (86,726) (205,472) (233,683) (112,374) (230,510) (167,557) Other miscellaneous income (443,767) 365
Net change in plan fiduciary net position 18,125,995 (1,438,258) (3,135,032) 10,794,553 7,508,391 6,040,122 4,223,869 34,638,872 Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633 Plan fiduciary net position - ending (b) $143,740,988 $142,302,730 $139,167,698 $149,962,251 $157,470,642 $163,510,764 167,734,633 202,373,505 Net pension liability - ending (a)-(b) $53,011,142 $56,568,530 $66,092,378 $77,465,471 $76,505,177 $81,305,364 $87,090,289 $61,862,727 Plan fiduciary net position as a percentage of the total pension liability 73.06% 71.56% 67.80% 65.94% 67.30% 66.79% 65.82% 76.59% Covered payroll $17,725,581 $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 $27,681,286 Net pension liability as percentage of covered payroll 299.07% 317.83% 308.71% 263.57% 323.76% 325.31% 331.44% 223.48% Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.

Benefit changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, and 2021, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate form 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
106

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years*

SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution $4,210,973 $5,399,856 $5,228,454 $6,166,024 $6,851,659 $7,831,598 $8,616,536 $9,491,640 Contributions in relation to the actuarially
determined contributions 4,210,973 5,399,856 5,228,454 6,166,024 6,851,659 7,831,598 8,616,536 9,491,640 Contribution deficiency (excess) $0 $0 $0 $0 $0 $0 $0 $0 Covered payroll $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 $27,681,286 $28,788,170 Contributions as a percentage of covered payroll 23.66% 25.22% 17.79% 26.09% 27.41% 29.81% 31.13% 32.97% Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, and 2.625% for 2020, and 2.50% for 2021 and 2022 Salary increases
Investment rate of return
Retirement age
Mortality
*Fiscal year 2015 was the 1st year of implementation
Varies by entry age and service

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and 7.00% for 2021 and 2022, net of administrative expenses, including inflation The probabilities of Retirement are based on the CalPERS Experience Study.

The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019, 2020, 2021, and 2022, pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
107

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Safety Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years*

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Total Pension Liability
Service cost $5,143,842 $4,968,087 $5,329,842 $6,264,307 $6,511,672 $6,379,124 $6,880,000 $7,072,216 Interest on total pension liability 18,899,544 19,398,484 20,134,558 21,238,842 22,129,483 23,249,091 24,284,010 25,441,168 Changes of benefit terms
Changes of assumptions (4,789,129) 18,010,606 (1,293,579) Difference between expected and actual experience (4,226,388) (915,267) 4,520,149 1,318,613 2,853,684 742,624 1,772,836 Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787) Net change in total pension liability 10,882,090 1,794,448 10,085,138 35,272,925 13,036,491 16,572,165 15,522,575 16,972,433 Total pension liability - beginning 266,884,738 256,002,648 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480 Total pension liability - ending (a) $266,884,738 $268,679,186 $278,764,324 $314,037,249 $327,073,740 $343,645,905 $359,168,480 $376,140,913 Plan fiduciary net position
Contributions - employer $6,535,399 $7,191,715 $8,535,737 $8,071,060 $9,323,936 $10,164,921 $11,402,434 $12,413,770 Contributions - employee 2,151,163 1,714,039 1,961,907 1,980,507 2,134,552 2,486,989 2,890,991 2,893,339 Net investment income 29,348,051 4,264,997 950,612 21,553,126 17,363,158 14,404,633 11,506,885 54,912,645 Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787) Plan to plan resource movement (229) (512) 20 32
Administrative expense (219,696) (118,968) (283,579) (325,104) (157,625) (326,879) (240,703) Other miscellaneous income (617,378) 512
Net change in plan fiduciary net position 24,873,317 (605,551) (3,134,936) 16,560,135 12,248,954 10,989,716 9,089,404 52,665,264 Plan fiduciary net position - beginning 195,811,152 170,937,835 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874 Plan fiduciary net position - ending (b) $195,811,152 $195,205,601 $192,070,665 $208,630,800 $220,879,754 $231,869,470 $240,958,874 $293,624,138 Net pension liability - ending (a)-(b) $71,073,586 $73,473,585 $86,693,659 $105,406,449 $106,193,986 $111,776,435 $118,209,606 $82,516,775 Plan fiduciary net position as a percentage of the total pension liability 73.37% 72.65% 68.90% 66.44% 67.53% 67.47% 67.09% 78.06% Covered payroll $15,994,412 $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 $24,378,494 Net pension liability as percentage of covered payroll 444.37% 440.49% 456.60% 538.79% 484.19% 486.51% 487.17% 338.48% Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.

Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a.

Golden Handshakes).

Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, and 2021, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate form 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate. 108

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Safety Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years*

SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution $7,191,715 $8,538,138 $8,071,060 $9,322,781 $10,164,821 $11,401,783 $12,413,770 $13,387,919 Contributions in relation to the actuarially
determined contributions 7,191,715 8,538,138 8,071,060 9,322,781 10,164,821 11,401,783 12,413,770 13,387,919 Contribution deficiency (excess) $0 $0 $0 $0 $0 $0 $0 $0 Covered payroll $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 $24,378,494 $24,325,363 Contributions as a percentage of covered payroll 43.12% 44.97% 41.26% 42.51% 44.24% 46.99% 50.92% 55.04% Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, and 2.625% for 2020, and 2.50% for 2021 and 2022 Salary increases Varies by entry
Investment rate of return 7.50% for 2015
to 2018, 7.375%
Retirement age The
Mortality The
probabilities of
mortality are
based on the
CalPERS
Experience
Study. Pre-
*Fiscal year 2015 was the 1st year of implementation
109

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Measurement Date 6/30/17 6/30/18 6/30/2019 6/30/2020 6/30/2021 Total OPEB Liability
Service Cost $1,574 $1,535 $1,558 $1,604 $1,516
Interest 5,087 5,325 5,568 5,952 6,058
Changes in benefit terms
Differences between expected and actual experience 91 2,895 (3,332) Changes of assumptions (672) (1,859) 1,446
Benefit payments (2,901) (3,326) (3,378) (4,052) (4,009) Net change in total OPEB liability 3,760 3,625 5,971 1,645 1,679 Total OPEB liability - beginning 75,240 79,000 82,625 88,596 90,241 Total OPEB liability - ending (a) $79,000 $82,625 $88,596 $90,241 $91,920 Plan fiduciary net position
Contributions - employer $3,703 $4,128 $4,180 $4,854 $4,810 Contributions - employee
Net investment income 1,803 1,566 1,402 838 7,141
Administrative expense (9) (37) (5) (12) (9)
Benefit payments (2,901) (3,326) (3,378) (4,052) (4,009) Net change in plan fiduciary net position 2,596 2,331 2,199 1,628 7,933 Plan fiduciary net position - beginning 17,114 19,710 22,041 24,240 25,868 Plan fiduciary net position - ending (b) $19,710 $22,041 $24,240 $25,868 $33,801 Net OPEB liability - ending (a)-(b) $59,290 $60,584 $64,356 $64,373 $58,119 Plan fiduciary net position as a percentage of the total OPEB liability 24.95% 26.68% 27.36% 28.67% 36.77% Covered-employee payroll $26,539 $26,986 $27,662 $28,215 $26,824 Net OPEB liability as a percentage of covered-employee payroll 223.41% 224.50% 232.65% 228.15% 216.67% * Fiscal year 2018 was the first year of implementation. 110

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022

SCHEDULE OF CONTRIBUTIONS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Fiscal Year Ended June 30, 2018 2019 2020 2021 2022
Actuarially determined contribution $6,279 $6,839 $6,995 $7,253 $7,373 Contributions in relation to the
actuarially determined contribution 4,128 4,180 4,854 4,810 4,869 Contribution deficiency (excess) $2,151 $2,659 $2,141 $2,443 $2,504 Covered-employee payroll $26,986 $27,662 $28,215 $26,824 $25,079 Contributions as a percentage of
covered-employee payroll 15.30% 15.11% 17.20% 17.93% 19.41% * Fiscal year 2018 was the first year of implementation.

Valuation Date • June 30, 2019
Contribution Policy • City contributes $802,000 per year into trust Actuarial Cost Method • Entry Age Normal, Level Percentage of Payroll Amortization Method • Level dollar
Amortization Period • Average of 21 years remaining for 2021/22 • 6.75% at June 30, 2020
• 6.75% at June 30, 2019
• Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust.

Inflation • 2.75% per annum
Salary Increases • Aggregate - 3% annually
• Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend • Non-Medicare - 7.00% for 2022, decreasing to an ultimate rate of 4.0% in 2076 and later years
• Medicare - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 and later years
Mortality, Retirement, Disability, Termination • CalPERS 1997-2015 Experience Study Mortality Improvement • Mortality projected fully generational with Scale MP-2019 Healthcare participation for future retirees • 100% if covered, 95% if waived Retiree Healthcare OPEB Plan - Agent Multiple Employer

NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTION
Methods and Assumptions for Actuarially Determined Contribution Discount Rate and Long-Term Expected
Rate of Return on Assets
111
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SUPPLEMENTARY INFORMATION
This Page Left Intentionally Blank

GENERAL FUND
The 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. The General Fund is comprised of the following:

GENERAL PURPOSE FUND
This fund accounts for resources traditionally associated with government, such as administration, public safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.

MEASURE W FUND
This fund accounts for revenue as the result of the voter-approved one-half percent sales and use tax that was passed on November 3, 2015. The tax went into effect April 1, 2016 and will last for 30 years until March 31, 2046. Revenues are committed for maintenance and enhancement of local services. 115
General Purpose Measure W Total
ASSETS
Cash and investments $41,281,273 $8,780,342 $50,061,615 Receivables:

Accounts 15,224,674 3,078,388 18,303,062
Accrued interest 161,122 161,122
Leases 13,455,776 13,455,776
Due from other funds 1,270,000 1,270,000
Due from Conference Center 40,379 40,379
Inventory 4,099 4,099
Restricted cash and investments 152,797 152,797
Properties held for redevelopment 14,763,033 14,763,033 Total Assets $86,353,153 $11,858,730 $98,211,883

LIABILITIES
Accounts payable $4,582,555 $6,891 $4,589,446
Accrued salaries and benefits 1,766,827 1,766,827
Other payable 842,046 842,046
Deposits 1,159,644 1,159,644
Total Liabilities 8,351,072 6,891 8,357,963

DEFERRED INFLOWS OF RESOURCES
Related to leases 13,207,264 13,207,264

FUND BALANCES
Nonspendable 4,099 4,099
Restricted 14,763,033 14,763,033
Committed 4,244,813 11,839,164 16,083,977
Assigned 7,469,764 12,675 7,482,439
Unassigned 38,313,108 38,313,108
Total Fund Balances 64,794,817 11,851,839 76,646,656
Total Liabilities and Fund Balances $86,353,153 $11,858,730 $98,211,883

CITY OF SOUTH SAN FRANCISCO

GENERAL FUND

COMBINING BALANCE SHEETS
JUNE 30, 2022
116
General Purpose Measure W Total

REVENUES
Property taxes $49,779,284 $49,779,284
Sales taxes 22,361,011 $15,399,766 37,760,777
Transient occupancy taxes 12,135,638 12,135,638
Franchise Fees 4,863,076 4,863,076
Other taxes 6,537,423 6,537,423
Intergovernmental 3,196,346 3,196,346
Interest and rentals 1,553,209 1,553,209
Licenses and permits 14,062,474 14,062,474
Charges for services 9,747,605 9,747,605
Fines and forfeitures 700,961 700,961
Other 515,004 515,004
Total Revenues 125,452,031 15,399,766 140,851,797

EXPENDITURES
Current:

City Council 252,677 252,677
City Clerk 887,678 887,678
City Treasurer 39,852 39,852
City Attorney 1,138,457 1,138,457
City Manager 3,911,694 279,786 4,191,480
Finance 3,148,914 3,148,914
Non-departmental 2,580,748 2,580,748
Human Resources 2,065,927 2,065,927
Fire 32,560,468 32,560,468
Police 33,281,487 33,281,487
Public Works 6,294,564 6,294,564
Parks and Recreation 18,092,526 18,092,526
Library 6,495,279 6,495,279
Economic and Community Development 11,006,922 11,006,922 Total Expenditures 121,757,193 279,786 122,036,979

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,694,838 15,119,980 18,814,818

OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,507,641 1,507,641
Transfers in 4,763,729 4,763,729
Transfers out (10,033,749) (11,201,861) (21,235,610)
Total Other Financing Sources (Uses) (3,762,379) (11,201,861) (14,964,240) Net Change in Fund Balances before special items (67,541) 3,918,119 3,850,578

SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923) (2,962,923) Net Change in Fund Balances (3,030,464) 887,655
Fund balance - July 1 67,825,281 7,933,720 75,759,001
Fund balance - June 30 $64,794,817 $11,851,839 $76,646,656

CITY OF SOUTH SAN FRANCISCO

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
117

CITY OF SOUTH SAN FRANCISCO

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):

Property taxes $41,074,710 $41,074,710 $49,779,284 $8,704,574 Sales taxes 19,531,177 20,281,177 22,361,011 2,079,834
Transient occupancy taxes 7,085,194 8,585,194 12,135,638 3,550,444 Franchise fees 4,600,000 4,600,000 4,863,076 263,076
Other taxes 3,614,753 3,614,753 6,537,423 2,922,670
Intergovernmental 2,325,338 5,818,982 3,196,346 (2,622,636) Interest and rentals 3,564,976 3,504,976 1,553,209 (1,951,767) Licenses and permits 16,453,166 16,453,166 14,062,474 (2,390,692) Charges for services 9,287,470 7,848,478 9,747,605 1,899,127 Fines and forfeitures 676,975 676,975 700,961 23,986
Other 232,718 394,382 515,004 120,622
Amounts available for appropriation 108,446,477 112,852,793 125,452,031 12,599,238 Charges to appropriations (outflows)
City Council 292,426 292,427 252,677 39,750
City Clerk 1,151,844 1,231,044 887,678 343,366
City Treasurer 160,245 160,244 39,852 120,392
City Attorney 910,049 910,049 1,138,457 (228,408)
City Manager 3,214,467 4,106,430 4,159,376 (52,946)
Finance 3,807,781 4,385,682 3,603,809 781,873
Non-departmental 1,294,252 1,369,252 2,581,079 (1,211,827) Human Resources 2,042,597 2,307,004 2,184,942 122,062
Fire 29,508,065 29,892,151 32,975,264 (3,083,113)
Police 32,386,774 32,843,169 33,383,916 (540,747)
Public Works 5,978,429 6,396,059 6,743,595 (347,536)
Parks and Recreation 16,729,027 18,371,855 18,920,003 (548,148) Library 6,221,935 6,897,585 6,495,735 401,850
Economic and Community Development 8,227,651 16,293,222 15,860,574 432,648 Total charges to appropriations 111,925,542 125,456,173 129,226,957 (3,770,784)

OTHER FINANCING SOURCES (USES)
Gain from sale of property 630,000 690,000 1,507,641 817,641 Transfers in 1,187,080 5,519,792 4,763,729 (756,063)
Transfers out (1,125,000) (13,098,660) (10,033,749) 3,064,911 Total Other Financing Sources (Uses) 692,080 (6,888,868) (3,762,379) 3,126,489

NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS (2,786,985) (19,492,248) (7,537,305) 11,954,943

SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923) (2,962,923) Net Change in Fund Balances ($2,786,985) ($19,492,248) (10,500,228) $8,992,020 Fund Balance - July 1 67,825,281
Adjustment to budgetary basis:

Encumbrance adjustments 7,469,764
Fund Balance - June 30 $64,794,817
(Continued)
Budgeted Amounts
General Purpose
118

CITY OF SOUTH SAN FRANCISCO

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):

Property taxes
Sales taxes $12,708,000 $12,708,000 $15,399,766 $2,691,766 Transient occupancy taxes
Franchise fees
Other taxes
Intergovernmental
Interest and rentals
Licenses and permits
Charges for services
Fines and forfeitures
Other
Amounts available for appropriation 12,708,000 12,708,000 15,399,766 2,691,766 Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager 393,090 405,765 292,461 113,304
Finance
Non-departmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Total charges to appropriations 393,090 405,765 292,461 113,304

OTHER FINANCING SOURCES (USES)
Gain from sale of property
Transfers in
Transfers out (8,646,783) (21,417,675) (11,201,861) 10,215,814 Total Other Financing Sources (Uses) (8,646,783) (21,417,675) (11,201,861) 10,215,814

NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 3,668,127 (9,115,440) 3,905,444 13,020,884

SPECIAL ITEMS
Remittance of land sale proceeds
Net Change in Fund Balances $3,668,127 ($9,115,440) 3,905,444 $13,020,884 Fund Balance - July 1 7,933,720
Adjustment to budgetary basis:

Encumbrance adjustments 12,675
Fund Balance - June 30 $11,851,839
(Continued)
Budgeted Amounts
Measure W
119

CITY OF SOUTH SAN FRANCISCO

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):

Property taxes $41,074,710 $41,074,710 $49,779,284 $8,704,574 Sales taxes 32,239,177 32,989,177 37,760,777 4,771,600
Transient occupancy taxes 7,085,194 8,585,194 12,135,638 3,550,444 Franchise fees 4,600,000 4,600,000 4,863,076 263,076
Other taxes 3,614,753 3,614,753 6,537,423 2,922,670
Intergovernmental 2,325,338 5,818,982 3,196,346 (2,622,636) Interest and rentals 3,564,976 3,504,976 1,553,209 (1,951,767) Licenses and permits 16,453,166 16,453,166 14,062,474 (2,390,692) Charges for services 9,287,470 7,848,478 9,747,605 1,899,127 Fines and forfeitures 676,975 676,975 700,961 23,986
Other 232,718 394,382 515,004 120,622
Amounts available for appropriation 121,154,477 125,560,793 140,851,797 15,291,004 Charges to appropriations (outflows)
City Council 292,426 292,427 252,677 39,750
City Clerk 1,151,844 1,231,044 887,678 343,366
City Treasurer 160,245 160,244 39,852 120,392
City Attorney 910,049 910,049 1,138,457 (228,408)
City Manager 3,607,557 4,512,195 4,451,837 60,358
Finance 3,807,781 4,385,682 3,603,809 781,873
Non-departmental 1,294,252 1,369,252 2,581,079 (1,211,827) Human Resources 2,042,597 2,307,004 2,184,942 122,062
Fire 29,508,065 29,892,151 32,975,264 (3,083,113)
Police 32,386,774 32,843,169 33,383,916 (540,747)
Public Works 5,978,429 6,396,059 6,743,595 (347,536)
Parks and Recreation 16,729,027 18,371,855 18,920,003 (548,148) Library 6,221,935 6,897,585 6,495,735 401,850
Economic and Community Development 8,227,651 16,293,222 15,860,574 432,648 Total charges to appropriations 112,318,632 125,861,938 129,519,418 (3,657,480)

OTHER FINANCING SOURCES (USES)
Gain from sale of property 630,000 690,000 1,507,641 817,641 Transfers in 1,187,080 5,519,792 4,763,729 (756,063)
Transfers out (9,771,783) (34,516,335) (21,235,610) 13,280,725 Total Other Financing Sources (Uses) (7,954,703) (28,306,543) (14,964,240) 13,342,303

NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 881,142 (28,607,688) (3,631,861) 24,975,827

SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923) (2,962,923) Net Change in Fund Balances $881,142 ($28,607,688) (6,594,784) $22,012,904 Fund Balance - July 1 75,759,001
Adjustment to budgetary basis:

Encumbrance adjustments 7,482,439
Fund Balance - June 30 $76,646,656
Budgeted Amounts
Total
120

NON-MAJOR GOVERNMENTAL FUNDS
Special revenue funds are used to account for revenue sources that are restricted by law or administrative action to expenditures for specified purposes. Special revenue funds used by the City of South San Francisco include:

Gas Tax – Accounts for State monies received and expended for street improvements, repairs, engineering, and administration under Streets and Highway Code Sections 2105, 2106, 2107, and 2107.5. Includes sales taxes on gasoline received from the State’s Traffic Congestion Relief Fund.

Developer Contributions – Accounts for fees deposited for planning and engineering reviews or for future project development.

Community Development Block Grant – Accounts for Federal monies received to be expended for development of jobs and suitable housing for low-income residents.

Maintenance Districts – Accounts for a portion of property tax dedicated to provide for the maintenance of landscaped areas within housing developments.

Transportation Sales Tax – Accounts for the sales tax that provides resources for street improvements and repairs.

Solid Waste Reduction – Accounts for revenues and expenditures associated with the waste reduction, recycling, composting and household hazardous waste programs for residents and businesses.

Supplemental Law Enforcement Services – Accounts for State monies provided for designated Police department services.

City Programs – Organizations and individuals provide revenues that fund certain programs and services.

Affordable Housing Trust – The inclusionary housing requirement in the City provides that 20% of new residential housing units (for projects of 4 or more units) be affordable. These in-lieu fees (in-lieu of production of affordable housing units by the developer) provide new residential development’s share of affordable housing units.

PEG Equipment and Access – Accounts for the one percent of money set-aside from cable franchise fees that are used to support public, educational and governmental (PEG) channels.

Transit Station Enhancement in-Lieu Fee – Accounts for revenues that are collected as a negotiated community benefit.

Road Maintenance and Rehabilitation – Accounts for State monies received and expended for road maintenance and rehabilitation pursuant to Senate Bill 1, approved in 2017.

San Mateo County (SMC) Measure W ½ Sales Tax – Accounts for the City’s portion of the special half cent sales tax receipts restricted for congestion relief and transit improvements. 121
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Capital projects funds are used to account for resources used for the acquisition and construction of capital facilities or major capital equipment, except for capital improvements financed by proprietary funds. Capital projects funds used at the City of South San Francisco include:

Public Safety Impact Fee – These fees are to provide new development’s share of funding for the replacement of public safety capital equipment, vehicles and facilities.

Oyster Point Improvements Impact Fees – These fees provide new development’s share of funding for the Oyster Point at Highway 101 interchange improvements.

Sewer Capacity Charges – Accounts for cost recovery charged to new development based on proportional benefit, associated with providing sewer collection and treatment capacity to new development, both through existing infrastructure provided, and through future capital projects not funded by other sources.

Oyster Point Development Impact Fees – Accounts for expenditures associated with the acquisition, construction, or improvement related to Oyster Point Development.

Park Land Acquisition Fee – Accounts for monies received and expended pursuant to SSFMC Chapter 8.67 and Mitigation Fee Act for park land acquisition.

Park Construction Fee – Accounts for monies received and expended pursuant to SSFMC Chapter 8.67 and Mitigation Fee Act for park construction.

Bicycle and Pedestrian Impact Fee – Accounts for monies received and expended pursuant to SSFMC Chapter 8.68 for mitigation of impacts of new development on bicycle and pedestrian improvements in the City.

Commercial Linkage Impact Fee – Accounts for affordable housing funding created by new commercial development.

Library Impact Fee – Accounts for citywide fees to provide new development’s share of the expansion, rehabilitation and replacement of library facilities and collections to accommodate the increased demand for library services caused by future development Debt service funds are used to account for resources used for the payment of debt service on long-term debt. Debt service funds used at the City of South San Francisco include:

Debt Service – Accounts for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting the new City police station located within the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds, as well as capital improvements constituting the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds.
122
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CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2022

SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
ASSETS
Cash and investments $163,649 $11,435,046 $4,824,117 $3,680,937 Receivables:

Accounts 123,159 453,481 $249,130 55,850 22,727
Accrued interest 1,099 29,183 10,014
Loans 677,858
Restricted cash and investments 2,091
Total Assets $287,907 $11,917,710 $929,079 $4,879,967 $3,713,678

LIABILITIES
Liabilities:

Accounts payable $161,397 $30,630 $20,261
Other payable 524,787
Deposits 4,188,966
Unearned revenue
Due to other funds 210,000
Total Liabilities 4,350,363 765,417 20,261
Fund Balances:

Restricted $287,907 7,567,347 163,662 4,859,706 $3,713,678 Total Fund Balances 287,907 7,567,347 163,662 4,859,706 3,713,678 Total Liabilities and Fund Balances $287,907 $11,917,710 $929,079 $4,879,967 $3,713,678 124

SPECIAL REVENUE FUNDS
Road
Solid Supplemental Affordable PEG Transit Station Maintenance Waste Law Enforce- City Housing Equipment and Enhancement and Reduction ment Services Programs Trust Access In-Lieu Fee Rehabilitation $774,021 $965 $11,008,982 $872,019 $1,690,372 $2,490,013 $1,898,482 34,871 332 39,335 119,856
134 35,175 2,815 5,115 6,079 4,677
15,106
$808,892 $1,099 $11,044,157 $890,272 $1,734,822 $2,496,092 $2,023,015 $2,104 $135,585 $43,539
11,010
217,980
2,104 135,585 272,529
806,788 $1,099 10,908,572 617,743 $1,734,822 $2,496,092 $2,023,015 806,788 1,099 10,908,572 617,743 1,734,822 2,496,092 2,023,015 $808,892 $1,099 $11,044,157 $890,272 $1,734,822 $2,496,092 $2,023,015 (Continued)
125

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2022

SPECIAL

REVENUE

FUND CAPITAL PROJECTS FUNDS
SMC Measure W Public Oyster Point Sewer Oyster Point
1/2 Cent Safety Improvement Capacity Development
Sales Tax Impact Fee Impact Fees Charges Impact Fees
ASSETS
Cash and investments $1,278,810 $2,546,153 $29,149 $10,382,735 $38,906 Receivables:

Accounts 83,097 98,053
Accrued interest 2,770 5,456 687 25,929
Loans
Restricted cash and investments
Total Assets $1,364,677 $2,551,609 $29,836 $10,408,664 $136,959

LIABILITIES
Liabilities:

Accounts payable $37,072 $143,943
Other payable
Deposits
Unearned revenue
Due to other funds
Total Liabilities 37,072 143,943
Fund Balances:

Restricted $1,364,677 2,514,537 $29,836 $10,408,664 (6,984) Total Fund Balances 1,364,677 2,514,537 29,836 10,408,664 (6,984) Total Liabilities and Fund Balances $1,364,677 $2,551,609 $29,836 $10,408,664 $136,959 126

DEBT SERVICE

CAPITAL PROJECTS FUNDS FUND
Total
Park Land Park Bicycle and Commercial Nonmajor
Acquisition Construction Pedestrian Linkage Library Debt Governmental Fee Fee Impact Fee Impact Fee Impact Fee Service Funds
$3,223,001 $8,895,473 $185,475 $6,923,491 $673 $72,342,469 1,279,891
7,071 19,439 428 30,107 1 186,179
2,000,000 2,692,964
2,091
$3,230,072 $8,914,912 $185,903 $8,953,598 $674 $76,503,594 $39,500 $614,031
535,797
4,188,966
217,980
210,000
39,500 5,766,774
$3,230,072 $8,914,912 $185,903 8,914,098 $674 70,736,820 3,230,072 8,914,912 185,903 8,914,098 674 70,736,820
$3,230,072 $8,914,912 $185,903 $8,953,598 $674 $76,503,594 127

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax

REVENUES
Property taxes $2,220,652
Sales taxes
Other taxes $2,122,941
Intergovernmental $1,716,706 $664,707
Interest and rentals (12,714) ($332,865) 15,258 (114,917) Charges for services 2,613,506 203,639
Other 37,299
Total Revenues 1,703,992 2,317,940 883,604 2,220,652 2,008,024

EXPENDITURES
Current:

Fire
Police
Public works
Parks and recreation 2,203,316
Economic and community development 529,538 828,328
Other
Debt service:

Principal repayments
Interest and fiscal charges
Total Expenditures 529,538 828,328 2,203,316

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,703,992 1,788,402 55,276 17,336 2,008,024

OTHER FINANCING SOURCES (USES)
Transfers in 8,496 25,968 2,362
Transfers out (1,746,357) (674,452) (821,307)
Total Other Financing Sources (Uses) (1,746,357) (665,956) 25,968 (818,945) Net Change in Fund Balances (42,365) 1,122,446 55,276 43,304 1,189,079 Fund balance - July 1 330,272 6,444,901 108,386 4,816,402 2,524,599 Fund balance - June 30 $287,907 $7,567,347 $163,662 $4,859,706 $3,713,678 128

SPECIAL REVENUE FUNDS
Road
Solid Supplemental Affordable PEG Transit Station Maintenance Waste Law Enforce- City Housing Equipment and Enhancement and Reduction ment Services Programs Trust Access In-Lieu Fee Rehabilitation $166,041
$1,343,632
(1,505) ($358,098) ($31,346) ($58,804) ($70,109) (53,544) $209,224 1,041,789
362,502 5,450 157,275 1,253,473
209,224 164,536 1,046,193 (25,896) 98,471 1,183,364 1,290,088 64,536
75,656
1,049,683 185,386
75,656 64,536 1,049,683 185,386
133,568 100,000 (3,490) (211,282) 98,471 1,183,364 1,290,088 (28,541) (100,000) (489,105) (464,237) (296,282)
(28,541) (100,000) (489,105) (464,237) (296,282)
105,027 (492,595) (211,282) 98,471 719,127 993,806
701,761 1,099 11,401,167 829,025 1,636,351 1,776,965 1,029,209 $806,788 $1,099 $10,908,572 $617,743 $1,734,822 $2,496,092 $2,023,015 (Continued)
129

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL

REVENUE

FUND CAPITAL PROJECTS FUNDS
SMC Measure W Public Oyster Point Sewer Oyster Point
1/2 Cent Safety Improvement Capacity Development
Sales Tax Impact Fee Impact Fees Charges Impact Fees

REVENUES
Property taxes
Sales taxes $825,500
Other taxes
Intergovernmental $13,302,803
Interest and rentals (31,622) ($62,973) ($8,080) ($298,394) Charges for services 1,744,396 1,444,207 3,130,802 696,031 Other
Total Revenues 793,878 1,681,423 1,436,127 2,832,408 13,998,834

EXPENDITURES
Current:

Fire 37,072
Police
Public works 2,800 14,058,921
Parks and recreation
Economic and community development
Other
Debt service:

Principal repayments 1,445,000
Interest and fiscal charges
Total Expenditures 37,072 1,445,000 2,800 14,058,921

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 793,878 1,644,351 (8,873) 2,829,608 (60,087)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (43,462) (629,200) (147,072)
Total Other Financing Sources (Uses) (43,462) (629,200) (147,072) Net Change in Fund Balances 750,416 1,015,151 (8,873) 2,682,536 (60,087) Fund balance - July 1 614,261 1,499,386 38,709 7,726,128 53,103 Fund balance - June 30 $1,364,677 $2,514,537 $29,836 $10,408,664 ($6,984) 130

DEBT SERVICE

CAPITAL PROJECTS FUNDS FUND
Total
Park Land Park Bicycle and Commercial Nonmajor
Acquisition Construction Pedestrian Linkage Library Debt Governmental Fee Fee Impact Fee Impact Fee Impact Fee Service Funds
$2,220,652
825,500
2,288,982
17,027,848
($79,929) ($223,229) ($4,891) ($347,603) ($19) (2,075,384) 1,707,708 3,963,057 73,981 3,425,285 693 20,254,318
1,815,999
1,627,779 3,739,828 69,090 3,077,682 674 42,357,915
37,072
64,536
14,137,377
2,203,316
1,357,866
4,375,209 5,610,278
$3,190,000 4,635,000
5,097,833 5,097,833
4,375,209 8,287,833 33,143,278
1,627,779 3,739,828 69,090 (1,297,527) 674 (8,287,833) 9,214,637 8,287,833 8,324,659
(1,480) (169,698) (5,611,193)
(1,480) (169,698) 8,287,833 2,713,466
1,626,299 3,570,130 69,090 (1,297,527) 674 11,928,103
1,603,773 5,344,782 116,813 10,211,625 58,808,717
$3,230,072 $8,914,912 $185,903 $8,914,098 $674 $70,736,820 131

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022

GAS TAX
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $1,886,008 $1,716,706 ($169,302) $610,685 $664,707 $54,022 Interest and rentals 15,000 (12,714) (27,714) 72,569 15,258 (57,311) Charges for services 203,639 203,639
Other
Total Revenues 1,901,008 1,703,992 (197,016) 683,254 883,604 200,350

EXPENDITURES
Current:

Police
Public works
Parks and recreation
Economic and community development 856,551 1,072,940 (216,389) Other
Debt service:

Principal repayments
Interest and fiscal charges
Total Expenditures 856,551 1,072,940 (216,389)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,901,008 1,703,992 (197,016) (173,297) (189,336) (16,039)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,421,465) (1,746,357) 675,108
Total Other Financing Sources (Uses) (2,421,465) (1,746,357) 675,108 NET CHANGE IN FUND BALANCES ($520,457) (42,365) $478,092 ($173,297) (189,336) ($16,039) Adjustment to budgetary basis:

Encumbrance adjustments 244,612
Fund balance - July 1 330,272 108,386
Fund balance - June 30 $287,907 $163,662

BLOCK GRANT

COMMUNITY DEVELOPMENT
132

MAINTENANCE DISTRICTS SOLID WASTE REDUCTION
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,903,851 $2,220,652 $316,801
$1,527,755 $2,122,941 $595,186
25,000 (114,917) (139,917)
$180,000 $209,224 $29,224
1,903,851 2,220,652 316,801 1,552,755 2,008,024 455,269 180,000 209,224 29,224 26,754 (26,754) 214,843 75,656 139,187
2,219,453 2,203,316 16,137
126,753 (126,753)
2,219,453 2,230,070 (10,617) 214,843 202,409 12,434
(315,602) (9,418) 306,184 1,552,755 2,008,024 455,269 (34,843) 6,815 41,658 25,968 25,968 2,362 2,362
(1,882,795) (821,307) 1,061,488 (106,627) (28,541) 78,086 25,968 25,968 (1,882,795) (818,945) 1,063,850 (106,627) (28,541) 78,086 ($289,634) 16,550 $306,184 ($330,040) 1,189,079 $1,519,119 ($141,470) (21,726) $119,744 26,754 126,753
4,816,402 2,524,599 701,761
$4,859,706 $3,713,678 $806,788
(Continued)

TRANSPORTATION SALES TAX
133

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Property taxes
Sales taxes
Other taxes $100,000 $166,041 $66,041
Intergovernmental
Interest and rentals (1,505) (1,505) ($358,098) ($358,098) Charges for services 1,041,789 $1,041,789
Other 362,502 362,502
Total Revenues 100,000 164,536 64,536 1,046,193 1,046,193

EXPENDITURES
Current:

Police 64,536 (64,536)
Public works
Parks and recreation
Economic and community development
Other 1,049,683 (1,049,683)
Debt service:

Principal repayments
Interest and fiscal charges
Total Expenditures 64,536 (64,536) 1,049,683 (1,049,683)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 100,000 100,000 (3,490) (3,490)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (100,000) (100,000) ($1,934,611) (489,105) 1,445,506 Total Other Financing Sources (Uses) (100,000) (100,000) (1,934,611) (489,105) 1,445,506 NET CHANGE IN FUND BALANCES ($1,934,611) (492,595) $1,442,016 Adjustment to budgetary basis:

Encumbrance adjustments
Fund balance - July 1 1,099 11,401,167
Fund balance - June 30 $1,099 $10,908,572

ENFORCEMENT SERVICES CITY PROGRAMS

SUPPLEMENTAL LAW
134
PEG

AFFORDABLE HOUSING TRUST EQUIPMENT AND ACCESS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $217,980 (217,980) $1,300,000 $1,343,632 $43,632
($31,346) ($31,346) $5,000 ($58,804) ($63,804) (53,544) (53,544) 5,450 5,450 125,000 157,275 32,275
217,980 (25,896) (243,876) 130,000 98,471 (31,529) 1,300,000 1,290,088 (9,912) 374,227 280,336 93,891
374,227 280,336 93,891
(156,247) (306,232) (149,985) 130,000 98,471 (31,529) 1,300,000 1,290,088 (9,912) (2,477,055) (296,282) 2,180,773
(2,477,055) (296,282) 2,180,773
($156,247) (306,232) ($149,985) $130,000 98,471 ($31,529) ($1,177,055) 993,806 $2,170,861 94,950
829,025 1,636,351 1,029,209
$617,743 $1,734,822 $2,023,015
(Continued)

ROAD MAINTENANCE

AND REHABILITATION
135

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Property taxes
Sales taxes $600,000 $825,500 $225,500
Other taxes
Intergovernmental
Interest and rentals (31,622) (31,622)
Charges for services
Other
Total Revenues 600,000 793,878 193,878

EXPENDITURES
Current:

Police
Public works
Parks and recreation
Economic and community development
Other
Debt service:

Principal repayments $3,190,000 $3,190,000
Interest and fiscal charges 5,097,833 5,097,833
Total Expenditures 8,287,833 8,287,833

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 600,000 793,878 193,878 (8,287,833) (8,287,833)

OTHER FINANCING SOURCES (USES)
Transfers in 8,287,833 8,287,833
Transfers out (641,753) (43,462) 598,291
Total Other Financing Sources (Uses) (641,753) (43,462) 598,291 8,287,833 8,287,833 NET CHANGE IN FUND BALANCES ($41,753) 750,416 $792,169
Adjustment to budgetary basis:

Encumbrance adjustments
Fund balance - July 1 614,261
Fund balance - June 30 $1,364,677

DEBT SERVICE FUND

SMC MEASURE W
1/2 CENT SALES TAX
136

INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments within the same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting from the service. Internal service funds used at the City include:

City Service – Accounts for vehicle maintenance and information technology services provided to City departments.

Self Insurance – Accounts for workers' compensation, general liability and property damage claim activity and financing is represented in this fund.

Health and Retirement Benefits – Accounts for health and retirement benefits paid on the behalf of eligible City employees.

Equipment Replacement – Accounts for resources set-aside for the future replacement of City vehicles and equipment.
137

CITY OF SOUTH SAN FRANCISCO

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2022
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
ASSETS
Current assets:

Cash and investments $2,901,666 $18,410,189 $10,357,318 $6,728,360 $38,397,533 Receivables:

Accounts
Accrued interest 9,122 52,307 24,769 18,894 105,092
Deposit 216,000 93,790 309,790
Prepaid items 1,204,373 1,204,373
Total current assets 2,910,788 18,678,496 11,680,250 6,747,254 40,016,788 Noncurrent assets:

Capital assets:

Depreciable, net of accumulated depreciation 4,402,557 4,402,557 Total non-current assets 4,402,557 4,402,557
Total Assets 2,910,788 18,678,496 11,680,250 11,149,811 44,419,345

LIABILITIES
Current liabilities:

Accounts payable 125,149 29,571 206,804 68,035 429,559
Other payable 32 32
Current portion of accrued insurance loss 3,047,258 3,047,258 Current portion of compensated absences 64,204 1,156,941 1,221,145 Current portion of long-term debt 144,637 144,637
Total current liabilities 189,353 3,076,829 1,363,745 212,704 4,842,631 Noncurrent liabilities:

Accrued insurance loss 13,436,000 13,436,000
Compensated absences obligation 160,866 567,128 727,994 Total noncurrent liabilities 160,866 13,436,000 567,128 14,163,994 Total Liabilities 350,219 16,512,829 1,930,873 212,704 19,006,625 NET POSITION:

Net investment in capital assets 4,257,919 4,257,919
Unrestricted 2,560,569 2,165,667 9,749,377 6,679,188 21,154,801 Total Net Position $2,560,569 $2,165,667 $9,749,377 $10,937,107 $25,412,720 138
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total

OPERATING REVENUES
Charges for services $5,387,183 $6,420,013 $15,359,131 $1,370,243 $28,536,570 Total Operating Revenues 5,387,183 6,420,013 15,359,131 1,370,243 28,536,570

OPERATING EXPENSES
Personnel expenses 2,199,493 876,699 15,118,036 18,194,228 Professional services 469,266 98,461 567,727
Program supplies 1,707,775 1,125 328,446 2,037,346
Insurance 12,988 2,610,838 2,623,826
Self-insurance and claims 2,248,076 2,248,076
Repair and maintenance 657,991 198,626 856,617
Utilities 176,937 176,937
Depreciation 967,562 967,562
Other 14,972 541,005 555,977
Total Operating Expenses 5,239,422 5,834,074 15,660,166 1,494,634 28,228,296 Operating Income (Loss) 147,761 585,939 (301,035) (124,391) 308,274

NONOPERATING

REVENUES (EXPENSES)
Interest income (104,605) (600,713) (287,019) (217,390) (1,209,727) Interest expense (6,614) (6,614)
Gain from disposal of capital assets 10,418 10,418
Other 335,290 335,290
Total Nonoperating
Revenues (Expenses) (104,605) (265,423) (287,019) (213,586) (870,633) Net income (loss) before transfers 43,156 320,516 (588,054) (337,977) (562,359)

TRANSFERS
Transfers in 49,440 250,000 832,865 1,132,305
Change in Net Position 92,596 320,516 (338,054) 494,888 569,946 Net Position - July 1 2,467,973 1,845,151 10,087,431 10,442,219 24,842,774 Net Position - June 30 $2,560,569 $2,165,667 $9,749,377 $10,937,107 $25,412,720

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2022

CITY OF SOUTH SAN FRANCISCO
139

CITY OF SOUTH SAN FRANCISCO

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $5,418,210 $6,755,303 $15,359,131 $1,370,243 $28,902,887 Cash payments to suppliers for goods and services (3,039,929) (2,709,299) (509,095) (6,258,323) Cash payments to employees for services (2,184,197) (954,835) (16,902,464) (20,041,496) Cash payments for judgments and claims (1,514,615) (1,514,615) Net Cash Provided by Operating Activities 194,084 1,576,554 (1,543,333) 861,148 1,088,453

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers in 49,440 250,000 832,865 1,132,305
Net Cash Provided by Noncapital Financing Activities 49,440 250,000 832,865 1,132,305

CASH FLOWS FROM CAPITAL

AND RELATED FINANCING ACTIVITIES
Principal paid on capital lease (140,892) (140,892)
Interest payments (6,614) (6,614)
Acquisition of capital assets, net (424,683) (424,683)
Proceeds from the sale of capital assets 17,719 17,719
Net Cash Used in Capital and Related Financing Activities (554,470) (554,470)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid) (237,931) (1,361,148) (634,023) (493,331) (2,726,433) Changes in fair values of investments 131,457 753,848 356,973 272,316 1,514,594 Net Cash Provided by Investing Activities (106,474) (607,300) (277,050) (221,015) (1,211,839) Net Increase (Decrease) in cash and cash equivalents 137,050 969,254 (1,570,383) 918,528 454,449 Cash and cash equivalents, beginning 2,764,616 17,440,935 11,927,701 5,809,832 37,943,084 Cash and cash equivalents, ending $2,901,666 $18,410,189 $10,357,318 $6,728,360 $38,397,533 Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) $147,761 $585,939 ($301,035) ($124,391) $308,274 Adjustments to reconcile operating income (loss)
to cash flows from operating activities:

Depreciation 967,562 967,562
Other non-operating revenue (expenses) 335,290 335,290
Net change in assets and liabilities:

Accounts and lease receivables 31,027 31,027
Deposit
Prepaid items (1,204,373) (1,204,373)
Accounts payable (172) (78,136) 84,551 17,948 24,191
Other payable 29 29
Accrued insurance losses 733,461 733,461
Compensated absence obligations 15,468 (122,476) (107,008) Net Cash Provided by (Used in) Operating Activities $194,084 $1,576,554 ($1,543,333) $861,148 $1,088,453

NONCASH TRANSACTIONS
Retirement of capital assets ($7,301) ($7,301)
140

CUSTODIAL FUNDS
Custodial Funds report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.

SSF Employee Deferred Comp Trust Oversight – This fund is used to pay for the administrative costs of monitoring the Deferred Compensation Funds on behalf of City employees. The City does not make any contributions to the fund.

Oyster Point CFD – Accounts for Community Facilities District No. 2021-01 special assessment collections and debt service payments.
141

CITY OF SOUTH SAN FRANCISCO

CUSTODIAL FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ASSETS
Cash and investments $139,655 $139,655
Interest receivable 396 396
Restricted cash and investments $20,221,759 20,221,759
Total Assets 140,051 20,221,759 20,361,810

LIABILITIES
Accounts payable 2,500 2,500
Total Liabilities 2,500 2,500

NET POSITION
Restricted for others 137,551 137,551
Restricted for bondholders 20,221,759 20,221,759
Total Net Position $137,551 $20,221,759 $20,359,310
142

CITY OF SOUTH SAN FRANCISCO

CUSTODIAL FUNDS

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2022
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL

ADDITIONS
Plan contributions $32,041 $32,041
Contribution from property owners $20,764,872 20,764,872 Interest and rentals (4,559) 11,452 6,893
Total Additions 27,482 20,776,324 20,803,806

DEDUCTIONS
Professional services 20,100 20,100
Payments to bondholders 554,565 554,565
Total Deductions 20,100 554,565 574,665
Change in net position 7,382 20,221,759 20,229,141

NET POSITION
Beginning of the year 130,169 130,169
End of the year $137,551 $20,221,759 $20,359,310
143
This Page Left Intentionally Blank

STATISTICAL SECTION
This part of the City’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’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

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

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

1. Assessed Value and Estimated Market Value of Taxable Property

2. All Overlapping Property Tax Rates

3. Principal Property Tax Payers

4. Property Tax Levies and Collections
Debt Capacity
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 to issue additional debt in the future:

1. Ratio of Outstanding Debt by Type

2. Computation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin

4. Continuing Disclosure Requirements:
a. Revenue Bond Coverage
b. Sewer Debt Service Coverage
c. Bonded Debt Pledge Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:

1. Demographic and Economic Statistics

2. Principal Employers
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:

1. Full-Time City Government Employees by Function

2. Operating Indicators by Function/Program

3. Capital Asset Statistics by Function/Program
145
STATISTICAL SECTION - (Continued)
Miscellaneous Information

1. Collection and Use of 1% Special Transient Occupancy Tax Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
146
2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets $216,508,668 $230,440,390 $230,517,037 $231,142,079 $254,344,554 Restricted 30,514,986 42,367,623 49,311,828 52,406,602 54,478,093 Unrestricted 8,021,490 (12,317,511) (134,389,522) (120,119,617) (86,808,434) Total governmental activities net position $255,045,144 $260,490,502 $145,439,343 $163,429,064 $222,014,213 Business-type activities
Net investment in capital assets $72,217,660 $78,045,318 $78,598,277 $83,930,073 $86,167,704 Restricted
Unrestricted 13,353,988 15,367,085 4,196,654 6,243,225 7,199,925 Total business-type activities net position $85,571,648 $93,412,403 $82,794,931 $90,173,298 $93,367,629 Primary government
Net investment in capital assets $288,726,328 $308,485,708 $309,115,314 $315,072,152 $340,512,258 Restricted 30,514,986 42,367,623 49,311,828 52,406,602 54,478,093 Unrestricted 21,375,478 3,049,574 (130,192,868) (113,876,392) (79,608,509) Total primary government net position $340,616,792 $353,902,905 $228,234,274 $253,602,362 $315,381,842 2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $254,570,044 $271,349,364 $296,243,640 $316,169,957 $452,722,446 Restricted 96,316,988 117,752,590 138,701,991 160,119,056 139,059,768 Unrestricted (129,833,581) (114,028,420) (130,288,161) (144,181,245) (194,945,964) Total governmental activities net position $221,053,451 $275,073,534 $304,657,470 $332,107,768 $396,836,250 Business-type activities
Net investment in capital assets $90,097,907 $100,463,280 $111,968,328 $123,628,942 $133,598,554 Restricted
Unrestricted 3,227,395 44,966 2,040,842 7,208,752 4,271,663 Total business-type activities net position $93,325,302 $100,508,246 $114,009,170 $130,837,694 $137,870,217 Primary government
Net investment in capital assets $344,667,951 $371,812,644 $408,211,968 $439,798,899 $586,321,000 Restricted 96,316,988 117,752,590 138,701,991 160,119,056 139,059,768 Unrestricted (126,606,186) (113,983,454) (128,247,319) (136,972,493) (190,674,301) Total primary government net position $314,378,753 $375,581,780 $418,666,640 $462,945,462 $534,706,467 Source: City of South San Francisco, Department of Finance (a) The City adjusted certain beginning balances during fiscal years 2014-15 and 2017-18 due to the implementation of GASB Statements 68 and 75. Financial data shown for the proceeding year were not adjusted for the presentation.

CITY OF SOUTH SAN FRANCISCO
(accrual basis of accounting)
Last Ten Fiscal Years (a)
Net Position by Component
($200)
($100)
$0
$100
$200
$300
$400
$500
$600
$700
$800
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Unrestricted
Restricted
Invested in Capital Assets Net of
Related Debt
147

CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016
Expenses
Governmental Activities:

General Government $8,360,945 $7,155,035 $8,421,857 $9,044,518 Fire Department 22,746,291 21,200,903 22,005,883 22,488,964 Police Department 24,756,958 24,376,379 23,910,436 23,158,168 Public Works 15,773,710 14,980,417 14,493,039 11,916,572 Park, Recreation and Maintenance Services 12,570,236 12,658,309 12,383,880 12,901,657 Library 4,615,967 4,310,550 4,300,885 4,442,577
Economic and Community Development 16,126,427 5,525,541 5,928,316 7,603,275 Interest on Long -Term Debt 52,139
Total Governmental Activities Expenses 105,002,673 90,207,134 91,444,296 91,555,731 Business-Type Activities:

Sewer Rental 20,870,522 19,301,103 23,969,579 18,273,580 Parking District 792,609 943,859 503,014 894,769
Storm Water 1,655,950 1,078,868 1,234,616 1,289,465
Total Business-Type Activities Expenses 23,319,081 21,323,830 25,707,209 20,457,814 Total Primary Government Expenses $128,321,754 $111,530,964 $117,151,505 $112,013,545 Program Revenues
Governmental Activities:

Charges for Services:

General Government $1,951,016 $5,785,598 $3,946,302 $4,194,563 Fire Department 2,987,956 3,304,952 3,520,275 3,450,524 Police Department 2,640,146 2,805,640 2,370,736 2,076,837 Public Works 2,926,227 4,734,813 5,071,729 10,361,525
Park, Recreation and Maintenance Services 3,433,567 3,571,947 3,708,272 3,744,137 Library 125,416 138,827 120,850 164,271
Economic and Community Development 3,457,020 5,800,849 5,337,177 6,131,463 Operating Grants and Contributions 5,455,010 5,601,916 5,753,845 5,581,492 Capital Grants and Contributions 4,036,786 1,538,225 632,735 1,147,337 Total Government Activities Program Revenues 27,013,144 33,282,767 30,461,921 36,852,149 Business-Type Activities:

Charges for Services:

Sewer Rental 19,338,107 19,155,467 19,798,033 19,569,341 Parking District 732,932 785,586 819,051 843,199
Storm Water 427,291 409,458 407,640 412,105
Operating Grants and Contributions 6,137,401 7,619,601 6,242,687 5,802,788 Capital Grants and Contributions
Total Business-Type Activities Program Revenue 26,635,731 27,970,112 27,267,411 26,627,433 Total Primary Government Program Revenues $53,648,875 $61,252,879 $57,729,332 $63,479,582 Net (Expense)/Revenue
Governmental Activities ($77,989,529) ($56,924,367) ($60,982,375) ($54,703,582) Business-Type Activities 3,316,650 6,646,282 1,560,202 6,169,619 Total Primary Government Net Expense ($74,672,879) ($50,278,085) ($59,422,173) ($48,533,963) 148
2017 2018 2019 2020 2021 2022
$10,253,403 $12,506,188 $12,139,671 $15,378,452 $19,611,586 $20,793,108 25,750,126 30,352,387 31,986,738 34,442,874 34,492,838 28,530,628 25,838,242 30,732,288 32,994,122 36,095,698 33,376,962 35,635,007 12,396,998 18,379,278 20,425,958 17,737,243 7,567,745 7,544,142 15,217,677 17,162,377 17,962,298 19,620,848 17,159,696 19,482,582 5,184,282 5,910,406 6,241,093 6,728,102 6,274,811 6,060,920 8,927,162 10,094,626 10,557,116 9,837,938 11,728,168 12,034,671 512,376 2,200,344 4,686,930
103,567,890 125,137,550 132,306,996 140,353,531 132,412,150 134,767,988 22,661,768 24,397,607 25,719,049 26,213,885 26,644,459 26,246,647 940,181 1,202,319 896,994 1,116,840 1,338,092 1,170,305 1,333,409 1,026,948 1,188,182 1,206,694 922,057 1,309,360 24,935,358 26,626,874 27,804,225 28,537,419 28,904,608 28,726,312 $128,503,248 $151,764,424 $160,111,221 $168,890,950 $161,316,758 $163,494,300 $2,225,049 $1,966,755 $7,930,983 $5,217,199 $6,968,307 $5,413,298 4,242,940 6,327,921 6,052,804 6,073,247 5,952,872 7,857,602 2,146,909 2,230,824 2,351,491 2,092,791 1,642,726 2,878,353 10,869,608 24,727,897 27,811,701 23,355,636 24,859,635 17,734,041 3,756,369 4,489,665 4,293,474 2,872,786 1,165,630 3,058,826 96,987 102,124 105,466 97,603 19,037 1,054,339
3,911,597 13,052,441 14,214,991 9,067,781 4,275,808 28,676,546 4,533,539 5,827,149 12,091,079 8,757,554 8,021,958 10,852,746 577,995 2,515,868 1,629,730 4,930,640 5,498,698 3,342,651 32,360,993 61,240,644 76,481,719 62,465,237 58,404,671 80,868,402 19,897,769 22,417,156 24,078,076 24,296,811 24,705,044 22,778,206 916,687 1,084,472 1,180,538 1,003,222 764,514 993,986
418,840 656,315 540,679 412,707 410,745 412,842
5,763,645 5,834,455 6,452,950 7,440,041 14,815,460 5,663,695 5,252,622
26,996,941 29,992,398 32,252,243 33,152,781 40,695,763 35,101,351 $59,357,934 $91,233,042 $108,733,962 $95,618,018 $99,100,434 $115,969,753 ($71,206,897) ($63,896,906) ($55,825,277) ($77,888,294) ($74,007,479) ($53,899,586) 2,061,583 3,365,524 4,448,018 4,615,362 11,791,155 6,375,039 ($69,145,314) ($60,531,382) ($51,377,259) ($73,272,932) ($62,216,324) ($47,524,547) 149
2013 2014 2015 2016
General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property Taxes $26,420,861 $22,890,828 $24,650,648 $26,438,620 Sales Taxes 12,931,805 12,725,141 13,932,125 15,188,686 Transient Occupancy Tax 9,659,281 11,174,017 12,947,473 13,393,437 Franchise fees 3,982,092
Other Taxes 7,588,471 8,141,010 8,650,056 5,124,574
Motor Vehicle In-Lieu 33,767 40,074 26,995 26,708
Property taxes in lieu of vehicle license fees 4,955,873 5,319,154 5,551,651 5,770,060 Interest Earnings 809,721 1,108,177 629,036 1,354,266
Gain from sale of property
Other 1,965,744 2,012,444 4,577,239 2,334,407
Extraordinary Item
Transfers (906,857) (1,041,120) (1,429,308) (919,547)
Special items 11,873,226
Total Government Activities 75,331,892 62,369,725 69,535,915 72,693,303 Business-Type Activities:

Interest Earnings 95,177 153,353 126,874 289,201
Transfers 906,857 1,041,120 1,429,308 919,547
Total Business-Type Activities 1,002,034 1,194,473 1,556,182 1,208,748 Total Primary Government $76,333,926 $63,564,198 $71,092,097 $73,902,051 Change in Net Position
Governmental Activities ($2,657,637) $5,445,358 $8,553,540 $17,989,721 Business-Type Activities 4,318,684 7,840,755 3,116,384 7,378,367 Total Primary Government $1,661,047 $13,286,113 $11,669,924 $25,368,088

CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(continued)
(Accrual Basis of Accounting)
150
2017 2018 2019 2020 2021 2022
$29,023,618 $29,551,445 $33,446,750 $37,415,367 $41,561,039 $40,011,221 24,087,776 28,340,393 31,843,568 31,855,027 33,039,229 38,143,689 13,631,507 13,978,533 17,091,222 13,829,025 6,710,271 12,135,638 4,090,073 4,403,493 4,469,808 4,594,577 4,498,202 4,863,076 5,708,187 5,871,096 4,995,404 4,515,376 4,529,764 6,537,423 28,933 34,452 32,200 53,089 49,785 77,558
6,133,230 6,438,199 7,150,867 7,457,005 4,888,696 11,988,715 622,518 1,097,916 4,808,664 6,384,253 941,856 (6,724,092) 840,298 1,518,059
2,365,820 5,180,288 7,799,392 9,152,218 11,602,214 14,458,939 (1,105,038) (1,997,377) (2,101,222) (8,060,646) (4,984,746) (1,419,235) 45,205,422 (7,154,626) (531,591) 276,939 (1,378,533) (2,962,923) 129,792,046 85,743,812 109,845,360 107,472,230 101,457,777 118,628,068 27,710 37,072 633,704 824,916 52,623 (761,751)
1,105,038 1,997,377 2,101,222 8,060,646 4,984,746 1,419,235 1,132,748 2,034,449 2,734,926 8,885,562 5,037,369 657,484 $130,924,794 $87,778,261 $112,580,286 $116,357,792 $106,495,146 $119,285,552 $58,585,149 $21,846,906 $54,020,083 $29,583,936 $27,450,298 $64,728,482 3,194,331 5,399,973 7,182,944 13,500,924 16,828,524 7,032,523 $61,779,480 $27,246,879 $61,203,027 $43,084,860 $44,278,822 $71,761,005 151

CITY OF SOUTH SAN FRANCISCO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable $805,677 $14,163 $1,134 $33,580 $474 $106 $372 $574 $574 $4,099 Restricted 20,582,335 19,201,948 18,372,633 18,372,633 14,763,033 Committed 1,406,430 3,879,451 2,536,790 3,654,283 11,780,724 16,725,897 22,619,868 17,723,338 17,723,338 16,083,977 Assigned 566,104 743,746 1,458,029 1,578,153 5,244,279 4,334,322 11,881,363 5,720,788 5,720,788 7,482,439 Unassigned 23,498,194 15,891,899 17,285,422 17,751,169 39,278,746 19,644,232 31,239,632 43,296,762 43,296,762 38,313,108 Total General Fund $26,276,405 $20,529,259 $21,281,375 $23,017,185 $56,304,223 $61,286,892 $84,943,183 $85,114,095 $85,114,095 $76,646,656 (a) All Other Governmental Funds
Nonspendable $39,205
Restricted $30,539,396 $42,392,238 $43,437,361 $52,938,897 $55,195,500 $78,603,366 103,135,202 $140,143,149 $140,143,149 $243,582,187 Assigned 1,105,320 6,188,554 367,023 29,363,924 29,363,924 24,889,824 Unassigned (1,379,895) (521,604) (40,459) (88,331) (11,073) (2,971,345) 235,649 235,649 (1,437,892) Total all other governmental funds $30,264,821 $41,870,634 $49,585,456 $53,305,920 $55,107,169 $78,592,293 $100,203,062 $169,742,722 $169,742,722 $267,034,119 #REF! #REF! 56,541,226 62,399,893 70,866,831 70,866,831 76,323,105 185,146,245 343,680,775 (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis. $0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Total Committed
Total Unassigned
Total Assigned
Total Restricted
Total Nonspendable
152
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CITY OF SOUTH SAN FRANCISCO
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2013 2014 2015 2016
Revenues
Property Taxes $27,077,697 $23,010,136 $24,650,648 $26,438,620 Other Taxes 31,894,811 33,931,446 38,275,478 41,811,097 Intergovernmental revenues 13,054,594 10,757,440 10,453,071 12,360,354 Interest and Rents 3,238,089 3,632,693 3,531,966 4,207,453 Licenses and permits 3,054,451 4,366,271 4,795,158 6,896,897 Charges for services 9,275,724 16,864,409 13,387,712 15,386,358 Fines and forfeitures 1,753,682 1,528,319 1,221,413 791,756 Other 1,837,675 2,249,728 4,660,668 2,439,579
Total Revenues 91,186,723 96,340,442 100,976,114 110,332,114 Expenditures
Current:

General government 6,658,532 5,970,429 7,167,969 8,469,924 Fire Department 20,877,917 20,163,759 21,247,989 24,175,340 Police Department 22,542,135 23,309,568 23,611,743 25,458,986 Public works 9,186,493 16,791,894 15,923,071 14,846,346 Recreation and Community Services 10,927,433 11,552,502 11,826,407 13,234,028 Library 4,112,570 3,987,928 4,247,650 4,681,188
Economic and Community Development 20,512,545 5,972,966 5,917,508 7,907,655 Other 480,290 395,749
Capital outlay
Debt service:

Principal repayment 453,381 352,674 656,000
Interest and fiscal charges 52,139
Total Expenditures 94,869,764 88,202,427 90,775,301 99,825,216 Excess (deficiency) of revenues over
(under) expenditures (3,683,041) 8,138,015 10,200,813 10,506,898 Other Financing Sources (Uses)
Transfers in 4,467,530 21,870,234 17,983,227 8,143,075
Transfers (out) (6,780,943) (24,149,582) (19,717,102) (13,193,699) Lease revenue bonds issued
Premium on bonds
Sale of capital assets
Total other financing sources (uses) (2,313,413) (2,279,348) (1,733,875) (5,050,624) Net Change in fund balances
before extraordinary and special items (5,996,454) 5,858,667 8,466,938 5,456,274 Extraordinary item
Special item
Net change in fund balances ($5,996,454) $5,858,667 $8,466,938 $5,456,274 Debt service as a percentage of
noncapital expenditures 0.1% 0.6% 0.4% 0.7%
For The Fiscal Year Ended June 30,
154
2017 2018 2019 2020 2021 2022
$35,156,848 $35,989,644 $40,597,617 $44,872,372 $46,449,735 $51,999,936 49,608,385 54,597,272 60,721,378 57,214,783 51,008,432 64,411,396 4,019,771 8,433,240 13,179,593 18,317,060 17,867,273 24,822,304 3,100,692 3,524,727 7,231,303 8,864,998 3,620,391 (2,537,324) 7,823,403 14,674,809 15,381,416 15,900,500 15,589,002 14,062,474 14,485,367 31,961,419 41,055,659 27,442,005 23,191,413 45,787,046 899,118 423,604 926,729 814,354 535,750 700,961
2,906,625 6,454,460 7,994,701 3,067,691 7,893,148 2,524,116 118,000,209 156,059,175 187,088,396 176,493,763 166,155,144 201,770,909 9,399,930 10,403,449 10,166,977 12,453,262 12,112,319 15,422,722 25,632,366 26,059,072 27,576,879 28,161,459 31,817,325 32,597,540 25,998,097 26,970,854 28,533,292 37,468,430 70,954,323 39,678,917 12,143,965 23,859,399 38,459,963 40,070,330 51,501,254 87,823,372 14,897,157 15,468,370 16,530,603 17,130,302 15,795,645 20,295,842 5,157,355 5,379,836 5,628,693 5,940,870 5,903,883 6,495,279 8,943,111 9,338,793 9,085,390 8,780,903 11,227,503 12,709,167 274,183 256,298 333,024 723,901 3,490,091 5,610,278
5,520,422
23,000 2,382,000 3,464,000 1,210,000 975,000 4,635,000
739,146 2,307,460 5,525,760
102,469,164 120,118,071 139,778,821 152,678,603 206,084,803 236,314,299 15,531,045 35,941,104 47,309,575 23,815,160 (39,929,659) (34,543,390) 14,327,130 26,486,651 22,230,499 38,117,966 37,970,252 36,220,467 (16,368,499) (30,795,941) (24,581,721) (46,647,023) (43,202,081) (38,772,007) 43,905,000 86,410,000 65,420,000
10,242,530 18,116,565 6,686,317
1,016,276 3,990,605 840,298 (2,718,691) 1,507,641
(1,025,093) (318,685) (1,510,924) 45,618,473 96,576,045 71,062,418 14,505,952 35,622,419 45,798,651 69,433,633 56,646,386 36,519,028 20,582,335 (7,154,626) (531,591) 276,939 (1,378,533) (2,962,923) $35,088,287 $28,467,793 $45,267,060 $69,710,572 $55,267,853 $33,556,105

0.0% 2.2% 3.0% 1.7% 2.9% 7.0%
For The Fiscal Year Ended June 30,
155
Real Property Net Taxable value Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b) 2013 5,606,400,603 $ $ 1,628,754,902 $ 5,050,279,321 $ 418,927,733 $ 12,704,362,559 $ 1,288,434,392 $ 13,992,796,951 $ 13,992,796,951 0.42174% 2014 5,900,441,192 $ $ 1,713,575,060 $ 4,273,694,531 $ 1,204,288,116 $ 13,091,998,899 $ 1,212,353,871 $ 14,304,352,770 $ 14,304,352,770 0.13474% 2015 6,313,393,048 $ $ 2,402,335,027 $ 4,588,967,014 $ 345,957,716 $ 13,650,652,805 $ 1,244,971,467 $ 14,895,624,272 $ 14,895,624,272 0.13804% 2016 6,716,642,000 $ $ 2,000,204,271 $ 5,189,813,366 $ 376,874,603 $ 14,283,534,240 $ 1,197,263,526 $ 15,480,797,766 $ 15,480,797,766 0.13634% 2017 7,087,550,257 $ $ 2,160,377,671 $ 5,414,028,340 $ 412,344,220 $ 15,074,300,488 $ 1,381,715,511 $ 16,456,015,999 $ 16,456,015,999 0.13632% 2018 7,458,269,085 $ $ 2,171,084,856 $ 5,838,028,479 $ 383,589,586 $ 15,850,972,006 $ 1,423,348,022 $ 17,274,320,028 $ 17,274,320,028 0.13631% 2019 7,882,766,880 $ $ 2,511,501,574 $ 6,673,522,321 $ 353,621,189 $ 17,421,411,964 $ 1,765,066,449 $ 19,186,478,413 $ 19,186,478,413 0.13640% 2020 8,459,303,983 $ $ 2,717,851,133 $ 7,535,473,093 $ 491,981,925 $ 19,204,610,134 $ 1,727,590,717 $ 20,932,200,851 $ 20,932,200,851 0.13638% 2021 9,020,710,463 $ $ 2,872,601,136 $ 8,744,250,213 $ 507,383,957 $ 21,144,945,769 $ 2,056,800,753 $ 23,201,746,522 $ 23,201,746,522 0.13622% 2022 9,440,006,474 $ $ 4,059,376,407 $ 8,650,209,742 $ 508,430,937 $ 22,658,023,560 $ 1,993,694,829 $ 24,651,718,389 $ 24,651,718,389 0.13587% Source: HdL Coren & Cone, San Mateo County Assessor 2012/13-2021/22 Tax Property Values. (a)
(b)

CITY OF SOUTH SAN FRANCISCO
The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides.

These values are considered to be full market values.

California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.

ASSESSED VALUE

OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Series1 Series2
156
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
2013 1.000 0.1959 1.1959 (1,19)
2014 1.000 0.2046 1.2046 (1,20)
2015 1.000 0.1822 1.1822 (1,21)
2016 1.000 0.1750 1.1750 (1,22)
2017 1.000 0.1749 1.1749 (1,23)
2018 1.000 0.1642 1.1642 (1,24)
2019 1.000 0.1548 1.1548 (1,25)
2020 1.000 0.1648 1.1648 (1,26)
2021 1.000 0.1893 1.1893 (1,27)
2022 1.000 0.1542 1.1542 (1,28)
Notes:
(28) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0579, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.1190 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021 and SM Jr College bonds. 1 has a rate of 1.1103, which includes San Bruno Pk Elem bond, SM Union High, SM High, SMCCCD 2021 and San Mateo Jr. Coll bonds.
(27) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0563, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.1543 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.1112, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Jr. Coll bonds.
(26) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0647, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.1267 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.1148, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Jr. Coll bonds.

CITY OF SOUTH SAN FRANCISCO

DIRECT AND OVERLAPPING

PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(1) Like other cities, South San Francisco includes several property tax rate areas with different rates. (23) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0714 percent, which includes SSFUSD bonds & San Mateo Jr College bond. 4 has a rate of 1.1282 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.0910 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond.
(24) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0601 percent, which includes SSFUSD bonds & San Mateo Jr College bond. 4 has a rate of 1.1276 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.0900 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond.
(25) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0597 percent, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.1126 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.0801 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Jr. Coll bonds.
(19) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0521 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.0921 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0905 percent, which includes San Bruno Pk Elem bond, SM Union High, SM Jr College bond and San Mateo Comm Coll bond. (20) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0522 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.1048 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond. (21) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0703 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.0991 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0983 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High,SM Jr College bond and San Mateo Comm Coll bond. (22) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0707 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 3 has a rate of 1.1080 percent and 1 with 1.1068 percent rate which includes College bond Brisbane ESD Bond, Jefferson High bonds, SM Jr and San Mateo Comm College. 1 has a rate of 1.0929 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond. 157
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Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Genentech Inc.* $3,007,406,548 1 12.20% $1,886,267,716 1 13.48% HCP Oyster Point III LLC 842,373,175 2 3.42% --
ARE San Francisco LLC* 802,990,156 3 3.26% 333,776,264 4 2.39% Slough SSF LLC* 692,494,640 4 2.81% 477,096,721 3 3.41% GNS North Tower LP* 467,753,941 5 1.90% --
GNS South Tower LP* 427,069,629 6 1.73% --
United Airlines Inc 346,047,018 7 1.40% 206,348,820 6 1.47% Britannia Pointe Grand LP 325,871,517 8 1.32% 280,470,089 5 2.00% ARE East Grand Ave Owner LLC 242,919,318 9 0.99% --
BMR 1000 Gateway LP* 232,173,757 10 0.94% --
Slough BTC LLC -- -- -- 560,040,064 2 4.00%
BMR 180 Oyster Point LLC* -- -- -- 135,762,000 7 0.97%
Gateway Center LLC -- -- -- 135,430,223 8 0.97%
Britannia Biotech Gateway LP -- -- -- 132,496,505 9 0.95% Myers Peninsula Venture LLC* -- -- -- 122,122,090 10 0.87% Subtotal $7,387,099,699 29.97% $4,269,810,492 30.51%
Total Net Assessed Valuation:

Fiscal Year 2021-22 $24,651,718,389
Fiscal Year 2012-13 $13,992,796,951
* Pending Appeals on Parcels
HdL Coren & Cone, 2012/13 & 2021/22 Top Ten Property Taxpayers (Net Values).

San Mateo County Assessor 2012/13 & 2021/22 Combined Tax Rolls and the SBE Non Unitary Tax Roll Source:
2021-22 2012-13

CITY OF SOUTH SAN FRANCISCO
Principal Property Tax Payers
Current Year and Nine Years Ago
159
Fiscal Percent of
Year Allocations (5) Collections Delinquencies Delinquent taxes 2013 13,740,246 $ (4) (4) 0.0%
2014 14,928,197 (4) (4) 0.0%
2015 15,184,788 (4) (4) 0.0%
2016 15,994,773 (4) (4) 0.0%
2017 17,065,875 (4) (4) 0.0%
2018 17,894,855 (4) (4) 0.0%
2019 19,365,814 (4) (4) 0.0%
2020 20,651,650 (4) (4) 0.0%
2021 22,660,544 (4) (4) 0.0%
2022 23,680,782 (4) (4) 0.0%
Notes:
(1) Excludes State Reimbursed Exemptions and deductions for County property tax administration. (2) County adopted full cash value method of valuation rather than assessed valuation. (3) Levies include real and personal property.
(5) San Mateo County controller's Office. Adjusted estimated revenue for City of South San Francisco.

Source: San Mateo County Auditor -- Controller's Office; Finance Department Revenue Reports (4) Information not applicable. All general purpose property taxes are levied by the County and allocated to other governmental entities.

CITY OF SOUTH SAN FRANCISCO
PROPERTY TAX LEVIES AND COLLECTIONS (1)

LAST TEN FISCAL YEARS
$6
$7
$8
$9
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
$21
$22
$23
$24
$25
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
160

CITY OF SOUTH SAN FRANCISCO
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Loans from Lease
Fiscal Successor Revenue Capital
Year Agency Bonds Lease Total
2013 13,343,039 $ 3,084,553 $ 16,427,592 $
2014 11,722,826 3,316,836 15,039,662
2015 11,370,152 2,786,573 14,156,725
2016 10,714,152 2,238,998 12,953,150
2017 10,691,152 1,673,522 12,364,674
2018 8,309,152 1,135,102 9,444,254
2019 4,845,152 753,619 5,598,771
2020 3,635,152 43,905,000 489,781 48,029,933
2021 3,595,152 156,980,389 285,529 160,861,070
2022 2,150,152 224,792,690 144,637 227,087,479
Business-Type Activities
Sewer State Water Total Percentage
Fiscal Revenue Resources Primary of Personal Per
Year Bonds Loans Total Government Income (a) Capita (a) 2013 4,640,000 $ $ 52,118,587 $ 56,758,587 $ 73,186,179 3.65% 1,113.78 2014 4,385,000 47,591,019 51,976,019 67,015,681 3.30% 1,019.27 2015 4,120,000 43,543,614 47,663,614 61,820,339 2.92% 957.19 2016 3,850,000 39,392,832 43,242,832 56,195,982 2.59% 858.60 2017 3,570,000 35,136,032 38,706,032 51,070,706 2.22% 761.32 2018 3,275,000 30,770,503 34,045,503 43,489,757 1.80% 648.35 2019 2,970,000 35,148,205 38,118,205 43,716,976 1.63% 644.04 2020 2,655,000 50,150,607 52,805,607 100,835,540 3.48% 1,501.98 2021 2,325,000 60,480,459 62,805,459 223,666,529 7.10% 3,468.13 2022 1,980,000 60,799,450 62,779,450 289,866,929 n/a n/a Note : Debt amounts exclude any premiums, discounts, or other amortization amounts.

Sources: City of South San Francisco
State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) (a) See Schedule of Demographic and Economic Statistics for personal income and population data. $-
$50
$100
$150
$200
$250
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Total Governmental Total Business
161

CITY OF SOUTH SAN FRANCISCO

COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2022
2021-22 Assessed Valuation: $24,651,718,389
Redevelopment Incremental Valuation: -
Adjusted Assessed Valuation: $24,651,718,389
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2022 % Applicable (1) Debt 6/30/22 San Mateo Community College District $733,897,184 9.255% $67,922,184 Jefferson Union High School District 250,808,014 4.467 11,203,594 South San Francisco Unified School District 164,131,912 90.986 149,337,061 Brisbane School District 24,851,439 24.834 6,171,606
City of South San Francisco Community Facilities District No. 2021-1 19,685,000 100.000 19,685,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $254,319,445
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Mateo County General Fund Obligations $612,605,687 9.255% $56,696,656 San Mateo County Board of Education Certificates of Participation 6,490,000 9.255 600,650 San Mateo County Flood Control and Sea LRR District General Fund Obligations 14,675,000 61.572 9,035,691 South San Francisco Unified School District General Fund Obligations 2,980,000 90.986 2,711,383 Jefferson Union High School District Certificates of Participation 47,490,000 4.467 $2,121,378 City of South San Francisco Lease Revenue Bonds 224,792,690 100.000 224,792,690 City of South San Francisco Loans Payable 2,150,152 100.000 $2,150,152 City of South San Francisco Capital Leases 144,637 100.000 144,637 San Mateo County Mosquito and Vector Control District General Fund Obligations 3,825,000 9.255 $354,004 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT: $298,607,241 TOTAL DIRECT DEBT 227,087,479
Total Overlapping Debt $325,839,207
COMBINED TOTAL DEBT $552,926,686 (2)
(1) Percentage of overlapping debt applicable to the city is estimated uisng taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's asseessed value that is within the boundaries of the city divided by the destrict's total taxable ass Ratios to Adjusted Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.03%
Total Direct Debt 0.92%
Combined Total Debt 2.24%
Source: California Municipal Statistics, Inc. and City of South San Francisco 510-658-2640 Austin Busch
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. 162
ASSESSED VALUATION: $24,651,718,389
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $924,439,440 LESS AMOUNT OF DEBT SUBJECT TO LIMIT: 0
LEGAL BONDED DEBT MARGIN $924,439,440
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2013 $ 524,729,886 0 $ 524,729,886 0.00%
2014 536,413,229 0 536,413,229 0.00%
2015 558,585,910 0 558,585,910 0.00%
2016 580,561,386 0 580,561,386 0.00%
2017 617,102,145 0 617,102,145 0.00%
2018 647,787,001 0 647,787,001 0.00%
2019 719,492,940 0 719,492,940 0.00%
2020 784,957,532 0 784,957,532 0.00%
2021 870,065,495 0 870,065,495 0.00%
2022 924,439,440 0 924,439,440 0.00%
NOTE: (a)
Source: HDL Coren & Cone, San Mateo County Assessor - Combined Tax Rolls

CITY OF SOUTH SAN FRANCISCO

COMPUTATION OF LEGAL BONDED DEBT MARGIN
JUNE 30, 2022
California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value. 163

CITY OF SOUTH SAN FRANCISCO

REVENUE BOND COVERAGE

SEWER RENTAL ENTERPRISE FUND

LAST TEN FISCAL YEARS
Net Revenue Debt Service Requirements (4)
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage 2013 24,782,587 $ 15,151,968 $ 9,630,619 $ 245,000 $ 208,459 $ 453,459 $ 21.24 2014 26,908,316 14,904,225 12,004,091 255,000 199,831 454,831 26.39 2015 26,147,550 18,630,672 7,516,878 265,000 190,533 455,533 16.50 2016 25,610,518 13,514,706 12,095,812 270,000 180,566 450,566 26.85 2017 25,684,966 17,357,273 8,327,693 280,000 169,976 449,976 18.51 2018 28,287,485 19,073,940 9,213,545 295,000 158,616 453,616 20.31 2019 30,393,993 20,398,157 9,995,836 305,000 146,616 451,616 22.13 2020 31,807,110 21,064,165 10,742,945 315,000 134,019 449,019 23.93 2021 33,885,393 21,401,332 12,484,061 330,000 120,593 450,593 27.71 2022 27,789,553 20,992,476 6,797,077 345,000 106,331 451,331 15.06 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Gross revenue includes operating revenue and non-operating revenue. (2) Direct operating expenses include operating expenses (except depreciation) and non-operating expenses (except interest expense).
(3) Retirement of principal for 2005 Sewer Revenue Bonds begins in fiscal year 2008. (4) The requirement does not include loan payments on State Water Resources Board loans. See schedule of Sewer Debt service coverage for details.

Source: City of South San Francisco, Department of Finance $5
$10
$15
$20
$25
$30
$35
$40
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Revenue (1)
Expenses (2)
164
Fiscal Year
2016 2017 2018 2019 2020 2021 2022
Revenues
Service Charges $19,515,093 $19,750,636 $22,188,154 $23,556,871 $24,150,139 $24,526,952 $22,567,226 Connection and Other Fees 104,283 147,134 229,002 521,205 146,672 178,092 210,980 Interest Income 238,389 23,552 31,061 488,437 623,256 41,888 (652,348) Developer Fees
Other Cities' Participation (1) 5,752,765 5,763,644 5,834,455 5,827,480 6,887,043 9,138,461 5,663,695 Total Revenues $25,610,530 $25,684,966 $28,282,672 $30,393,993 $31,807,110 $33,885,393 $27,789,553 Operating Expenses (2) $18,759,650 $13,514,718 $19,073,943 $20,398,147 $21,064,167 $21,401,330 $21,049,553 Wastewater System Net Revenues $6,850,880 $12,170,248 $9,208,729 $9,995,846 $10,742,943 $12,484,063 $6,740,000 Parity Debt Service (3)
State Water Resources Control Board Loans $5,449,692 $5,454,747 $5,469,175 $5,477,075 $5,485,587 $5,497,048 $5,510,447 CSCDA Series 2005D Revenue Bonds 178,036 167,284 155,706 143,608 130,815 117,175 102,716 Total Parity Debt $5,627,728 $5,622,031 $5,624,881 $5,620,683 $5,616,402 $5,614,223 $5,613,163 Total Parity Debt Service Coverage 1.22 2.16 1.64 1.78 1.91 2.22 1.20 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 (2) Excludes depreciation, capital expenditures and debt service. (3) Includes Sewer Revenue Bonds and State Water Loan payments (1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the City of San Bruno's share of operating costs. See "Wastewater System" herein.
(4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of 25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and after July 1, 2004 and an adopted increase in rates for Fiscal Year 2005-06 of 9% per Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June 22, 2005.

CITY OF SOUTH SAN FRANCISCO

SEWER DEBT SERVICE COVERAGE

SEWER RENTAL ENTERPRISE FUND

LAST SEVEN FISCAL YEARS
165

CITY OF SOUTH SAN FRANCISCO

REDEVELOPMENT PLEDGED REVENUE COVERAGE

LAST EIGHT FISCAL YEARS
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage 2015 $ 1,605,000 2,904,331$ $ 4,509,331 2015 $ 230,000 $ 58,750 $ 288,750 2016 1,680,000 2,834,619 4,514,619 2016 245,000 46,875 291,875 2017 1,745,000 2,761,756 4,506,756 2017 255,000 34,375 289,375 2018 2018 275,000 21,125 296,125
2019 2019 285,000 7,125 292,125
2020 2020
2021 2021
2022 2022
Bond was paid off in fiscal year 2017
Funding Source: RDA tax increment revenues Funding Source: RDA tax increment revenues Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage 2015
2016
2017
2018
2019
2020
2021
2022
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
2015 1,605,000 2,904,331 4,509,331
2016 1,680,000 2,834,619 4,514,619
2017 1,745,000 2,761,756 4,506,756
2018 0 0 0
2019 0 0 0
2020 0 0 0
2021 0 0 0
2022 0 0 0
Note: Redevelopment Agencies abolished as of 1/31/2012.

Numbers for 2012 include the first and second RPTTF distributions received. (A) Shows coverage of all non-housing bonds pledged to tax increment.

Source: City of South San Francisco, Department of Finance RDA All Non-housing (A)
2006 RDA Revenue Bonds
Funding Source: RDA Gateway and Low Moderate Income Housing tax increment revenues.

Gateway bonds defeased in FY 05-06.
1999 RDA Revenue Bonds (Housing)
1999 Certificates of Participation 1989 Cal Health Facilities Financing Authority Revenue Bonds 166
City City
Estimated Personal Per Capita City San Mateo City
City Income (2) Personal Unemployment County Population Year Population (1) (in thousands) Income (2) Rate (3) Population (4) % of County 2012 65,127 $ 1,982,857 $ 30,446 6.3% 735,678 8.85%
2013 65,710 $ 2,005,666 $ 30,523 5.2% 747,373 8.79%
2014 65,749 $ 2,033,156 $ 30,923 4.5% 745,635 8.82%
2015 64,585 $ 2,114,826 $ 32,744 3.6% 765,135 8.44%
2016 65,451 $ 2,167,750 $ 33,120 3.2% 764,797 8.56%
2017 67,082 $ 2,303,425 $ 35,193 3.2% 771,410 8.70%
2018 67,078 $ 2,421,033 $ 36,092 2.3% 769,545 8.72%
2019 67,879 $ 2,684,438 $ 39,547 2.3% 766,573 8.85%
2020 67,135 $ 2,895,980 $ 43,136 8.9% 765,245 8.77%
2021 64,492 $ 3,148,543 $ 48,820 5.7% 737,888 8.74%
Notes:
** All data were updated to reflect the City of South San Francisco's current information available through HDL, Coren & Cone
Data Sources:
(1) City Population: HDL/California State Dept of Finance. (2) Personal and per capita income: HDL, Coren & Cone
(3) Unemployment Data: HDL/California Employment Development Department (4) San Mateo County Population- https://www.census.gov/quickfacts/fact/table/sanmateocountycalifornia,CA/PST045219

CITY OF SOUTH SAN FRANCISCO

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
City Personal Income
(in Thousands)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
City Unemployment Rate

8.20%

8.30%

8.40%

8.50%

8.60%

8.70%

8.80%

8.90%
City Population % of County
$-
$10,000
$20,000
$30,000
$40,000
$50,000
City Per Capita Personal Income
167
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Genentech Inc. 8,632 1 13.4% 7,777 1 11.9%
ABBVIE 1,000 2 1.6%
Costco Wholesale (4 stores) 834 3 1.3% 508 3 0.8%
Life Technologies Corporation 622 4 1.0% 650 2 1.0%
Amgen Inc 600 5 0.9% 419 4 0.6%
Verily Life Sciences LLC 555 6 0.9%
Amazon.com Services 425 7 0.7%
ZS Associates, Inc 390 8 0.6%
MRL San Francisco, LLC 317 9 0.5%
Frank & Grossman Landscape Contractors 265 10 0.4%
Successfactors, Inc 400 5 0.6%
Guardsmark LLC 351 6 0.5%
American Etc Inc/ Royal Laundry 318 7 0.5%
The New French Bakery, Inc 300 8 0.5%
DBI Beverage 232 9 0.4%
Oroweat/ Entenmann's 230 10 0.4%
Subtotal 13,640 21.1% 11,185 17.2%
Total City Population 64,492 65,127
Data Sources:
(1) SSF Business License Database- Business licenses expiring 12/31/22. (2) City of South San Francisco CAFR 2012-13
(3) Population: HDL/California State Dept of Finance 2021. 2021-22 2012-13

CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
168
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Government (1) 36.60 37.60 40.60 47.10 47.10 43.60 41.60 46.60 46.60 51.30 Fire Department (2) 82.48 82.98 83.48 92.68 92.68 92.68 91.93 91.68 91.68 93.49 Police Department 115.65 119.75 118.87 120.87 120.87 120.87 122.87 121.87 120.92 122.09 Park, Rec. & Maintenance Services 111.66 117.21 121.31 134.16 137.19 144.29 144.79 151.75 143.84 150.44 Library 35.35 37.66 37.71 38.71 39.26 40.49 41.49 41.49 38.56 38.15 Economic and Comm. Development 23.45 24.40 26.15 27.15 29.40 30.40 30.40 31.40 29.00 31.40 Public Works (2) 45.02 47.21 47.68 49.00 49.00 49.00 53.00 52.00 47.00 52.85 Water Quality Control Plant 38.82 39.63 39.06 41.74 41.50 41.50 41.50 41.50 41.50 41.50 Total 489.03 506.44 514.86 551.41 557.00 562.83 567.58 578.29 559.10 581.22 Notes:

1. City Council, City Treasurer, City Clerk, City Manager, HR, IT and Finance are under General Government.

2. Oversight of the Code Enforcement has been moved from Fire to Public Works Department.

Source: City of South San Francisco's FY2013-2022 Adopted Operating budget.

CITY OF SOUTH SAN FRANCISCO
Full-Time Equivalent City Government
Employees by Function
Last Ten Fiscal Years (Adopted Operating Budget)

0.00 100.00
200.00
300.00
400.00
500.00
600.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government (1) Fire Department (2) Police Department Park, Rec. & Maintenance Services Library Economic and Comm. Development Public Works (2) Water Quality Control Plant 169
2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Public safety:

Fire:

Inspections conducted 1,817 2,563 3,426 2,292 2,511 2,375 3,888 3,060 Police:

Police calls for service 31,532 32,477 33,313 34,811 38,299 38,541 40,503 60,333 Law violations:

Part I crimes 1,874 2,126 2,103 2,276 2,007 2,070 3,481 1,955 Physical arrests (adult and juvenile) 1,933 2,071 1,870 1,891 1,943 1,871 1,635 2,025 Traffic violations 3,828 4,211 3,785 3,359 3,620 4,172 2,119 1,985 Parking violations 13,378 12,006 15,291 18,339 26,228 12,269 13,276 17,667 Public works
Street resurfacing (miles) (Eng Div) 0 2 8 3.3 7.0 7.9 19.57 9.60 Potholes repaired (square miles
prior)/(square feet) 0.11 2 0 (2) 3221 410 190 165 264
Asphalt used for street repairs (tons) 250 151 94 148 13 46 69 68 Culture and recreation:

Recreation class participants (5) 26,879 23,399 23,939 25,688 23,394 17,333 (4) 5,282 8,631 Library:

Total items borrowed 643,630 565,806 558,106 544,059 582,497 (3) 450,637 (3) 245,869 456,652 Items in collection 130,106 (1) 208,400 209,895 219,114 228,224 247,393 260,205 229,891 Wastewater
Residential connections 16,470 16,491 16,488 12,556 12,559 12,549 12,571 12,672 Commercial connections 1,560 1,561 1,562 1,575 1,576 1,582 1,575 1,523 Other connections 128 131 140 140 140 140 140 140
Average daily sewage treatment
(millions of gallons) 8.89 7.92 8.41 8.62 8.62 7.12 6.76 7.35 Note: N/A denotes information not available.
(1) New items added for Grand Library and electronic books are also included. (2) Beginning 2018, pothole repairs will be measured by square feet instead of square miles. (3) Fewer items borrowed in FY2020 and FY2021 due to COVID-19 closures. (4) Summer camp and traditional sports programs included. Lower participant counts due to COVID-19 limitations and closures. (5) Registration counts have excluded all withdrawals from the classes for the year while the numbers in 2015 did not.

CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Eight Fiscal Years
170
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Public safety:

Fire stations 5555555555
Police stations 1111111111
Police Fleet 51 50 53 53 52 59 63 60 63 60
Public works
Miles of streets 127 127 127 127 127 127 127 127 127 127 Street lights (3) 4,505 4,505 4,505 4,505 4,505 4,531 4,531 4,531 4,581 4,581 Parking District lights (4) 20 20 20 20 16 16 16 16 16 16 Traffic Signals 74 74 74 76 76 76 76 76 80 80
Culture and recreation:

Community services:

City parks 28 28 28 28 28 28 28 28 28 28
City parks acreage 190 190 190 190 190 190 210 210 210 210 Playgrounds (5) 24 24 24 24 24 24 24 34 34 34
City trails 6666666666
Community gardens 1111111111
Community centers 4444444444
Senior centers (2) 1111111111
Skate Park 1111111111
Dog park 1111111111
Swimming pools 1111111111
Tennis courts 7777777777
Basketball Courts 12 12 12 12 12 12 12 12 12 12
Baseball/softball diamonds 11 11 11 11 11 11 11 11 11 11 Soccer/football fields 5555555555
Library:

City Libraries (1) 2222222222
Wastewater
Miles of sanitary sewers 164 164 164 164 164 164 164 164 164 164 Miles of storm sewers 125 125 125 125 125 125 125 125 125 125 Number of treatment plants 1111111111
Source: ssf.net/depts/rcs; Director of Rec & Comm Services; Superintendent of parks & Maintenance (1) Community Learning Center not included on count as it is only a homework center not a library. (2) The only senior center is Magnolia Center but programming still continues at El Camino. (3) Year 2013- Includes all lights in SSF billed as LS-2 from PG&E. (4) Year 2017- Lot 6 sold for Rotary Plaza development. (5) Year 2020 -Playgrounds in the Common Greens areas are now included.

CITY OF SOUTH SAN FRANCISCO
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
171
2019 2020 2021 2022
Transient Occupancy Tax Detail
TOT Collected $ 15,535,213 $ 12,591,459 $ 6,215,172 $ 11,268,807 1% Measure I Special Tax 1,556,009 1,114,911 495,099 866,831 Total TOT Collection $ 17,091,222 $ 13,706,371 $ 6,710,270 $ 12,135,638 1% Measure I Special Tax Use
Police $ 311,202 $ 222,982 $ 99,020 $ 173,366
Fire 311,202 222,982 99,020 173,366
Library 311,202 222,982 99,020 173,366
Parks 311,202 222,982 99,020 173,366
Recreation 311,202 222,982 99,020 173,366
Total 1% Measure I Special Tax 1,556,009 $ $ 1,114,911 $ 495,099 $ 866,831 * Note: The current TOT consists of three components - a 9% general excise tax (Measure FF) that generates General Fund revenues; a 1% special tax (Measure Ieffective January 1, 2005) was earmarked for use to supplement funding parks, recreation, library, and public safety services (SSFMC 4.20.033) and a $2.50 tax devoted to the acquistion, renovation, maintenance and operation of the South San Francisco Conference Center. The City Council last increased the total TOT rate from 9% to 10% in 2009 with the incremental 1% increase being a general tax. City's TOT rate from 10% to 12% effective january 1, 2019. A subsequent 2% increase over the next two years would revise the TOT rate to 13% (effective January 1, 2020) and 14% (effective January 1, 2021).

CITY OF SOUTH SAN FRANCISCO
Collection and Use of 1% Special Transient Occupancy Tax (TOT) Approved by Voters as Measure I * Miscellaneous Information
Last Four Fiscal Years
172