Att 2 SSF ACFR 2025 Final — South San Francisco City Council, April 8, 2026

CITY OF SOUTH SAN FRANCISCO,

CALIFORNIA
Annual Comprehensive Financial Report
Year Ended June 30, 2025

CITY OF SOUTH SAN FRANCISCO, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
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, 2025
Table of Contents
Page

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

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 ................................................................................................................................ 34 Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 36 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 38 Reconciliation of the Net Change in Fund Balances Total Governmental Funds with the Statement of Activities ........................................................................................................ 40 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – (Non GAAP Legal Basis)
General Fund ....................................................................................................................... 41

CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
FINANCIAL SECTION (Continued)
Major Proprietary Funds:

Statement of Net Position .............................................................................................................. 44 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 45 Statement of Cash Flows ............................................................................................................... 46 Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................................. 48 Statement of Changes in Fiduciary Net Position .......................................................................... 49 Notes to Basic Financial Statements ...................................................................................................... 51 Required Supplementary Information:

Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan ............................................................................................................ 106 Schedule of Contributions – Miscellaneous Plan ........................................................................ 107 Schedule of Changes in the 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

CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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 ..................................................................................................................... 130 Budgeted Non-major Government Funds:

Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non GAAP Legal Basis) ......................................... 136 Internal Service Funds:

Combining Statement of Net Position ............................................................................................ 144 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 145 Combining Statement of Cash Flows ............................................................................................. 146 Custodial Funds:

Combining Statement of Fiduciary Net Position ............................................................................ 148 Combining Statement of Changes in Fiduciary Net Position ......................................................... 149

STATISTICAL SECTION

Net Position by Component – Last Ten Fiscal Years .................................................................... 153 Changes in Net Position – Last Ten Fiscal Years .......................................................................... 154 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 158 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 160 Assessed Value of Taxable Property – Last Ten Fiscal Years ...................................................... 162 Direct and Overlapping Governments – Property Tax Rates Last Ten Fiscal Years ................................................................................................................ 163 Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 164 Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 165 iii

CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
STATISTICAL SECTION (Continued)
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 166 Computation of Direct and Overlapping Debt ............................................................................... 167 Computation of Legal Bonded Debt Margin ................................................................................. 168 Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 169 Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Nine Fiscal Years .............. 170 Redevelopment Pledged Revenue Coverage – Last Ten Fiscal Years .......................................... 171 Demographic and Economic Statistics – Last Ten Calendar Years .............................................. 172 Principal Employers – Current Year and Nine Years Ago ............................................................ 173 Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 174 Operating Indicators by Function/Program – Last Ten Fiscal Years ............................................ 175 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 176

Miscellaneous Information – Last Six Fiscal Years ...................................................................... 177

iv
v
vi
vii
viii
ix
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, 2024
Executive Director/CEO
x
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Rosa Govea Acosta
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Frank Risso
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Sharon RĂnals
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Sky Woodruff

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Marie Patea
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Matthew Samson
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Eunejune Kim
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Valerie Sommer
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Greg Mediati

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Nell Selander
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Scott Campbell
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Leah Lockhart
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Richard Lee

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DĂƌŬĚĚŝĞŐŽ;ŝƐƚƌŝĐƚϭͿ͕sŝĐĞDĂǇŽƌ
Buenaflor Nicolas (District 3), DĞŵďĞƌ
Mark Nagales (District 2), DĞŵďĞƌ
James Coleman (District 4), Member
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Tony Barrera
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Jacob Gilchrist
Phillip Vitale
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xi
City Council & Directory of Officials*
City Council
Eddie Flores (District 5) Mayor
Mark Addiego (District 1) Vice Mayor
Mark Nagales (District 2) Councilmember
Buenaflor Nicolas (District 3) Councilmember
James Coleman (District 4) Councilmember
Elected Officials
Rosa Govea Acosta City Clerk
Frank Risso City Treasurer
Appointed Officials
Sharon Ranals City Manager
Richard Lee Assistant City Manager
Megan Wooley-Ousdahl Deputy City Manager
Drew Corbet Finance Director
Scot Campbell Chief of Police
Tony Barrera Informa�on Technology Director
Jacob Gilchrist Capital Projects Director
Nell Selander Deputy Economic & Community Development Director Leah Lockhart Human Resources Director
Mathew Samson Fire Chief
Eunejune Kim Public Works Director
Valerie Sommer Library Director
Greg Media� Parks & Recrea�on Director
Budget Subcommitee
Mark Addiego
Buenaflor Nicolas
*As of September 2,2025
xii
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, 2025, 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 0.65%, 0.73%, and 2.01%, 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, 2025, 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 opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

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 19, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
December 19, 2025
4 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
The purpose of the Management’s Discussion and Analysis (MD&A) is to provide a narrative overview and analysis of City of South San Francisco’s financial activities for the year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with the additional information that we have furnished with the Transmittal Letter and Basic Financial Statements.

FINANCIAL HIGHLIGHTS
• Total Net Position for Governmental activities in FY 2024-25 increased by $43.9 million, or

8.9%, from $493.6 million in the prior year, to $537.5 million. Total assets increased by $48.9 million, with $36.5 million being an increase in cash and investments. Capital assets increased by $28.1 million due to additions in the building and improvements categories related to several notable projects including the new aquatics center and various transportation initiatives. The reduction in other assets in the amount of $15.7 million was due to drawing down from bond proceeds to fund capital projects, including the new aquatics center.

Additionally, the net pension liability remained flat year-over-year, while the OPEB liability decreased by $2 million.
• Total Net Position for Business-Type activities in FY 2024-25 increased by $2.5 million, or

1.7%, from $147 million in the prior year, to $149.5 million. The growth in Net Position was predominantly due to an increase in investment earnings and a reduction of expenses. • Revenues from Governmental Activities (excluding transfers) decreased by $7.5 million, or

3.1%, to $231.8 million in FY 2024-25 from $239.3 million in the prior year. Increases in tax revenues were offset by decreases in service charges and grant revenues. • Total program revenues from the City’s Enterprise Funds decreased by $3.1 million, or 7.9%, to $36.1 million from $39.2 million in the prior year. This was largely due to the reduction in capital contributions from other agencies that utilize the City’s sewer system. The City’s Parking Enterprise and Storm Water Enterprise revenues remained flat at around $1 million and $0.5 million, respectively.
• Expenses from Governmental Activities (excluding transfers and special items) increased by $7.7 million, or 4.3%, to $186.8 million in FY2024-25 from $179.1 million in the prior year.

This was primarily due to expenses increasing for general government activities ($4.6 million), parks and recreation ($2.8 million), and fire ($2 million). The significant increase in general government was related to liability insurance premiums due to our pooled insurance plan.

Expenses from Business-Type Activities decreased by $0.4 million, or 1.1%, to $36.9 million compared to $37.3 million in the prior year.
5 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025

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;
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 a 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 governmentwide 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. 6 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
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 details for each of these other funds.

The Fiduciary Fund Financial Statements provide financial information about the activities of Non-Obligated 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 the City’s basic services are considered to be governmental activities, including General Government, Fire, Police, 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.

The City’s Business-Type Activities also include the Parking Authority of the City of South San Francisco, as the City Council also governs this entity. • 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.
7 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
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 details of these non-Major funds. Major Funds present the major activities of the City for the year and may change from year to year because 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 2024-25 are presented versus FY 2023-24. 8 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
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, 2025 for Governmental Activities:

Governmental Net Position
Table 1
Governmental Net Position as of June 30
(In Millions)

Increase / (Decrease)
2025 2024 Amount %
Cash and investments 347.2$ 310.7$ 36.5$ 11.7%
Other assets 92.4 108.1 (15.7) (14.5%)
Capital assets 597.5 569.4 28.1 4.9%
Total assets 1037.1 988.2 48.9 4.9%
Total outflows of resources 49.7 64.0 (14.3) (22.3%)
Total outflow of resources 49.7 64.0 (14.3) (22.3%)
Long-term debt outstanding 204.7 211.5 (6.8) (3.2%)
Other liabilities 326.8 321.6 5.2 1.6%
Total liabilities 531.5 533.1 (1.6) (0.3%)
Deferred inflows of resources 17.8 25.6 (7.8) (30.5%)
Total deferred inflow of resources 17.8 25.6 (7.8) (30.5%) Net position:

Net investment in capital assets 431.8 413.1 18.7 4.5%
Restricted 172.0 159.7 12.3 7.7%
Unrestricted (66.3) (79.2) 12.9 (16.3%)
Total net position $ 493.6$ 537.5 43.9$ 8.9%
9 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
As shown in table 1, the total net position for Governmental Activities increased by $43.9 million in FY 2024-25 compared to the prior year. The increase in net position was driven by an increase in total assets in the amount of $48.9 million, of which $36.5 million was an increase in cash and investments. Other assets, which include receivables, properties held for redevelopment, and restricted cash and investments, decreased by $15.7 million due to reduction in restricted cash, which primarily represented the use of bond proceeds for capital assets such as the new aquatics center. Capital assets increased by $28.1 million primarily due to the capitalization of project activity, predominantly buildings and improvements, including the new aquatics center and various transportation projects.

Pursuant to GASB 75 and GASB 68 requirements, respectively, the City, as in prior years, recognized the Net OPEB liability of $46.3 million and Net Pension Liability of $216.7 million attributable to Governmental Activities.

10 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
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)
2025 2024 Amount %
Revenues
Program revenues:

Charges for services 52.9 $ 57.1 $ (4.2)$ (7.4%)
Operating grants and contributions 12.2 19.1 (6.9) (36.1%) Capital grants and contributions 4.5 9.1 (4.6) (50.5%)
Total program revenues 69.6 $ 85.3$ (15.7)$ (18.4%)
General revenues:

Taxes:

Property taxes $ 52.2 54.7 $ 2.5$ 4.8%
Sales taxes 37.4 39.5 (2.1) (5.3%)
Transient occupancy taxes 16.3 14.9 1.4 9.4%
Other taxes 19.2 12.6 6.6 52.4%
Property taxes in lieu 10.0 6.6 3.4 51.5%
Investment earnings 20.1 15.0 5.1 34.0%
Miscellaneous 4.5 13.2 (8.7) (65.9%)
Total general revenues 162.2$ 154.0$ $ 5.3% 8.2
Total revenues 231.8$ 239.3$ $ (3.1%) (7.5)
Expenses
General government $ 16.8 21.4 $ 4.6 $ 27.4%
Fire department 41.6 39.6 2.0 5.1%
Police department 41.5 40.4 1.1 2.7%
Public Works 26.2 28.8 (2.6) (9.0%)
Parks and Recreation 29.4 26.6 2.8 10.5%
Library 8.5 8.0 0.5 6.3%
Economic and Community Development 11.5 12.1 (0.6) (5.0%) Interest on long-term debt 6.7 6.8 (0.1) (1.5%)
Total expenses 186.8$ 179.1$ $ 4.3% 7.7
Excess / (deficiency) before transfers 45.0 $ 60.2$ (15.2)$ (25.2%) Transfers (1.1) (0.9) (0.2) 22.2%
Change in net position 43.9 59.3 (15.4) (26.0%)
Net position - beginning 493.6 434.3 59.3 13.7%
Net position - ending 537.5$ 493.6$ 43.9$ 8.9%
11 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
As shown in table 2, total Governmental revenues (excluding transfers and special items) decreased by $7.5 million, or 3.1%, compared to the prior year. General revenues, which include taxes and represent nearly 70% of total Governmental revenues, increased by $8.2 million, or

5.3%. This net increase was driven by property taxes, investment earnings, and other taxes, including a one-time payment of the commercial parking tax and a greater-than-expected apportionment of property taxes in lieu of the vehicle license fee. The latter revenue source is highly volatile year-over-year due to school funding formulas that impact the availability of funds to cover the payment due. These increases were partially offset by a year-over-year decrease in sales taxes ($2.1 million) and miscellaneous revenues ($8.7 million). Also of note is while investment earnings rose significantly year-over-year, from $15 million to $20 million, some of that increase was a function of unrealized investment gains.

Program revenues, which include service charges and grants, were down $15.7 million, or 18.4%, year-over-year. Service charges decreased $4.2 million, or 7.4%, which was primarily the result of impact fees that were lower in FY2024-25 in comparison to FY2023-24. The decrease in operating and capital grants was expected due to higher-than-normal grant activity in FY2023-24.

This includes state and local capital grants for ongoing infrastructure work, and the amount of funds claimed and recognized under the American Rescue Plan Act from the prior fiscal year. 12 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
Chart 1 shows the distribution of revenues from Governmental Activities by category.

Chart 1
Revenues by Source - Governmental Activities FY 2024-25 Governmental program expenses increased by $7.7 million, or 4.3%, in comparison to the prior year. The largest increases came from general government activities ($4.6 million), parks and recreation ($2.8 million), and fire ($2.0 million). Governmental program expenses will typically also increase year-over-year due to escalating salary and benefits costs for the existing employee base. The significant year-over-year increase for the general government category was related to insurance premiums due to our pooled insurance plan.

13 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
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 2024-25, the net expense for governmental activities increased by $23.5 million from $93.7 million to $117.2 million, which was primarily due to a $14.9 million net decrease in general government activities. This net decrease is a result of increased expenses and decreased revenues year-over-year, both of which were discussed in the preceding sections of this MD&A.

Increase / (Decrease)
2025 2024 Amount %
General government $ (0.3) (15.2) $ (14.9)$ 4966.7%
Fire department (31.1) (30.2) (0.9) 3.0%
Police department (37.9) (37.4) (0.5) 1.3%
Public works department 2.2 6.9 (4.7) (68.1%)
Recreation and community services (23.9) (21.9) (2.0) 9.1% Library (8.0) (7.2) (0.8) 11.1%
Economic and community development 3.4 3.2 0.2 6.2%
Interest on long-term debt (6.7) (6.8) 0.1 (1.5%)
Total $ (117.2) (93.7)$ (23.5)$ 25.1%
14 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
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, 2025 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 $2.5 million, or 1.7%, compared to the prior year. Total assets decreased slightly ($0.1 million), reflecting an increase in cash and an offsetting decrease in capital assets related primarily to regular depreciation. Total liabilities decreased by $3.5 million, or 4.0%, primarily due to a lower notes payable balance at year end.

Increase / (Decrease)
2025 2024 Amount %
Cash and Investments 44.8 $ 38.9 $ 5.9 $ 15.2%
Other assets 2.4 2.1 0.3 14.3%
Capital assets 181.6 187.9 (6.3) (3.4%)
Total assets 228.8 228.9 (0.1) (0.0%)
Deferred outflows related to pension/OPEB 5.5 7.1 (1.6) (22.5%) Total Deferred outflows of resources 5.5 7.1 (1.6) (22.5%) Long-term liabilities outstanding 46.7 51.3 (4.6) (9.0%) Other liabilities 37.8 36.7 1.1 3.0%
Total liabilities 84.5 88.0 (3.5) (4.0%)
Deferred inflows related to pension/OPEB 0.3 1.0 (0.7) (70.0%) Total deferred inflows of resources 0.3 1.0 (0.7) (70.0%) Net position:

Net investment in capital assets 130.3 132.1 (1.8) (1.4%) Restricted 0.0 0.0 0.0 0.0%
Unrestricted 19.2 14.9 4.3 28.9%
Total net position $ 147.0$ 149.5 $ 1.7% 2.5
15 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
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 $5.1 million and Net Pension Liability of $24.1 million attributable to Business-Type Activities.

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 FY2024-25 decreased slightly ($0.4 million) to $36.9 million. Increases in expenses from the Sewer Enterprise ($1.7 million) were offset by decreases in expenses in the Storm Water Enterprise ($2.2 million). The decrease in Storm Water was almost entirely attributable to a year-over-year reduction in expenses related to master planning activities that concluded in FY2023-24. Total revenues (program and general revenues combined) decreased $2.2 million to $38.3 million due to a year-over-year reduction in cost sharing contributions from other cities that utilize the sewer system. These reductions were anticipated as FY2023-24 contributions were higher due to one-time improvements in the system. The total change in net position of $2.5 million was a decrease of $1.6 million in comparison to the FY2023- 24 change in net position of $4.1 million.

Increase / (Decrease)
2025 2024 Amount %
Expenses
Sewer Enterprise 33.7 $ 32.0 $ 1.7 $ 5.3%
Parking District 1.3 1.2 0.1 8.3%
Storm Water 1.9 4.1 (2.2) (53.7%)
Total expenses 36.9 37.3 (0.4) (1.1%)
Revenues
Program Revenues
Charges for Services 27.3 27.4 (0.1) (0.4%)
Operating and Capital grants and contributions 8.8 11.8 (3.0) (25.4%) Total program revenues 36.1 39.2 (3.1) (7.9%)
General revenues
Investment earnings 2.2 1.3 0.9 69.2%
Total general revenues 2.2 1.3 0.9 69.2%
Excess (deficiency) before transfers 1.4 3.2 (1.8) (56.2%) Transfers 1.1 0.9 0.2 22.2%
Change in net position 2.5 4.1 (1.6) (39.0%)
Net position - beginning 147.0 142.9 4.1 2.9%
Net position - ending 149.5$ 147.0$ $ 1.7% 2.5
16 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
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, 2025, the City’s Governmental Funds reported combined fund balances of $343.1 million, an increase of $14.8 million, or 4.5%, compared to the prior year. This was primarily due to near completion of the bond funded capital improvement projects such as Civic Campus, the Police Station, and various Street Projects. The General Fund ending fund balance, which includes Measure W, was $126.6 million, reflecting an increase of $20.3 million, or 19.1%, over the prior year primarily due to stronger revenues in most major revenue categories.

Total Governmental Fund revenues (excluding transfers) decreased by $3.3 million, or 1.4%, from $232.2 million to $228.9 million, with decreases primarily from interest income, sales tax, intergovernmental revenues, and charges for city services. While the City saw a steady increase of property taxes due to a strong real estate market, this was not sufficient to make up for declines in other areas due to slowing economic growth, declining interest rates, and the reduction of American Rescue Plan Act funding as the program sunsets in 2026.

Total Governmental Fund expenditures (excluding transfers and special items) decreased by $1.4 million, or 0.7%, from $214.7 million in the prior year to $213.3 million in FY 2024-25. This was mainly due to ongoing reductions in capital expenditures as various capital projects were completed or neared completion. These reductions were also partially offset by other departments seeing increases in expenditures as personnel costs remained high due to annual salary adjustments and an increase in headcounts. As a result, the overall decrease is slight.

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:
17 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
Comparison of General Fund (excluding transfers) Final Budgets to Original Adopted Budget (in Thousands)
Table 6
18 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
Analysis of Major Governmental Funds
General Fund
In FY 2024-25, total General Fund revenues, excluding transfers in, were $181.7 million which was $24.0 million, or 15.2% higher than the final amended budget. Total General Fund expenditures, excluding transfers out and including encumbrances, ended FY 2024-25 at $153.3 million which was $6.1 million, or 3.8%, lower than the final budget due to carryover of a significant number of purchase orders.

As of June 30, 2025, the General Fund total fund balance was $126.6 million, $23.2 million of which was attributable to Measure W. Of the remaining fund balance, $29.1 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 $74.3 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 2024-25 were $62.2 million, which was $5.1 million or

8.9% over final budget, primarily due to the continued strong real estate market.

Sales tax revenue, including Measure W, was $36.9 million, which was $1.2 million or 3.3% over final budget, which is in line given the downward adjustment made to the initial budget during the year to reflect reduced consumer spending due to slowing economic growth coupled with persistent inflation.

Transient occupancy taxes totaled $16.3 million for the year, which was $1.5 million, or 10.1%, over the final budget. This category was again budgeted conservatively due to the expected lingering impacts of inflation and economic uncertainty. However, travel continued its rebound leading to higher hotel occupancy rates and considerably higher final collections than budget, due to ongoing business spending. By way of contrast, pre-pandemic TOT levels were approximately $17 million (FY2018-19).

Intergovernmental revenues were $4.6 million which was $0.3 million, or 6.2%, lower than final budget mainly due to the timing of receipt of various grants, many of which are on a reimbursement basis so that these revenues depend on progress of projects during the year. Additionally, as the American Rescue Plan Act funding comes to a close since the City’s allocation is now almost fully spent, these revenues were also lower.

Licenses and permits revenues were $16.7 million, which was $3.1 million, or 23.0% higher than the final budget. This category can be very difficult to budget since receipts depend on the timing of development projects within the City, which have increased in the current year relative to prior year. Additionally, based on the prior year, the City had projected this revenue stream conservatively, given inflation and economic uncertainty. 19 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
Charges for services were $13.8 million, which was $3.1 million or 28.7% above budget. This category was budgeted conservatively at the beginning of the year and only slightly adjusted upwards at mid-year given economic uncertainty and continuing inflation. However, the year ended stronger than expected and ultimately significantly exceeded the original budget.

Measure W revenue decreased slightly from $15.7 million in FY2023-24 to $15.3 million in FY 2024-25 and exceeded budget by $0.8 million primarily due to the City’s prudent budget approach to this volatile revenue category, which ultimately ended up closely matching actual revenue.

Expenditures. Compared to the prior year, General Fund expenditures, excluding transfers and including encumbrances, increased from $147.5 million to $153.3 million. This was driven by increased spending on ongoing capital projects specifically relating to public works and parks and recreation facilities. The city is currently engaged in street and traffic improvement projects as well as upgrades and construction relating to parks & recreation at Orange Memorial Park, which has driven the bulk of the increase. Additionally, non-departmental expenses (such as IT and professional services costs) have also increased, particularly due to increased general liability insurance due to ongoing inflation that continues to remain elevated. However, while overall expenses are higher, due to lower actual expenditures incurred on the capital projects than initially budgeted, as well as the reduced general government costs in economic and community development, the General Fund ended the year with a $6.1 million favorable variance versus the final budget.

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.

The Capital Improvement Fund consists of 1) regular capital projects 2) Bond funded Street Projects ($24 million) and 3) Bond funded Solar Projects ($2 million). The decrease in fund balance for this fund was mainly due to draw down from bond proceeds to fund the streets projects.

The reduction in fund balance of $15.7 million for the Capital Improvement for Orange Memorial Park also resulted from drawdowns from the bond proceeds for the projects.

20 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
Capital Infrastructure Reserve Fund fund balance was reduced by $0.8 million to $18.6 million due to expenditures for maintenance and repairs at city facilities, fire training facilities, and also street and park projects.

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 2024-25, combined ending fund balance for Capital Improvement Funds was $50.1 million which decreased $18.0 million from the combined ending fund balance of $68.1 million in the prior year. As mentioned above, the decrease was due to the spending down of previous bond proceeds, particularly as the Aquatics Center project at Orange Memorial Park has heavy ongoing activity.

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

It’s worth noting that impact fee funds, presented as non-major funds, received fewer developer payments during the year due to the large number of ongoing development projects for which payments were received in prior years, as well as a significantly lower amount of new development activity in the City due to general economic uncertainty and persistent inflation. This includes an $8.5 million reduction in Oyster Point development impact fees as well as a $4.9 million reduction in Commercial Linkage Impact Fees which will be used to provide affordable housing and to support the City’s adopted 2015-2023 Housing Element, and an $8.6 million reduction in citywide traffic impact fees used for various street and traffic improvement projects.

Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating revenue (before non-operating revenues and operating transfers) of $33.8 million in FY2024-25, a decrease of $0.9 million, or 2.5%, from $34.6 million in the prior year. This decrease in revenue is due to lower operating cost reimbursements from Other Cities. Operating expenses increased $1.8 million, or 5.7%, from $30.9 million to $32.7 million, due to new non-capital improvement projects relating to sludge dewatering and protective coverings and applications. Capital subventions, which consist of reimbursement from Other Cities, declined from $2.7 million to $439 thousand due to major sewer capital projects being completed in the prior year.

21 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
Parking District Fund
In FY 2024-25, the Parking District fund reported an operating loss (before non-operating revenues and operating transfers) of $0.3 million which was similar to the loss in the prior year of $0.2 million. Operating revenues and expenses remained flat, with insignificant changes from prior year, as parking meter and garage usage remained consistent.

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 $0.5 million, which is flat compared to the prior year, primarily from a levy on property owners. Transfers in from other funds totaled $1.2 million - $0.2 million from the General Fund, $0.7 million from non-Major Governmental Funds, and $0.3 million from the Capital Infrastructure Reserve Fund. Operating expenses in this fund totaled $1.9 million, a decrease of $2.2 million, or 53.7%, from $4.1 million in the prior year, primarily due lower expenses for the ongoing storm water master plan project.

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, 2025, the City had $779.1 million in capital assets (as shown in table 7 below), net of depreciation, representing an increase of $21.8 million from the prior year, driven primarily by construction projects such as the completion of new street and traffic improvements.

22 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
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)
2025 2024 Amount %
Governmental Activities:

Land 77.7 $ 77.7 $ -$ 0.0%
Buildings and improvements 257.0 153.6 103.4 67.3%
Equipment and vehicles 30.1 27.2 2.9 10.7%
Furniture and fixtures 2.6 2.6 0.0 0.0%
Infrastructure - streets 227.4 212.8 14.6 6.9%
Infrastructure - traffic control devices 18.9 17.6 1.3 7.4% Infrastructure - storm drains 9.0 8.9 0.1 1.1%
Construction in progress 207.9 289.1 (81.2) (28.1%)
Less accumulated depreciation (233.1) (220.1) (13.0) 5.9% Totals 597.5$ 569.4$ 28.1$ 4.9%
Business-Type Activities
Land 0.8 $ 0.8$ -$ 0.0%
Buildings and improvements 152.2 152.2 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 19.2 19.2 0.0 0.0%
Construction in progress 16.0 14.7 1.3 8.8%
Less accumulated depreciation (100.1) (92.5) (7.6) 8.2% Totals 181.6$ 187.9$ $ (3.4%) (6.3)
Total City 779.1$ 757.3$ 21.8$ 2.9%
23 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025

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:

Table 8
Outstanding Debt
(In Millions) at June 30
The decrease of $5.2 million in Governmental Activities outstanding debt stems from debt service payments of $5.2 million during FY 2024-25.

The decrease of $4.1 million in Business-Type Activities outstanding debt also stems from debt service payments of $4.1 million made during the fiscal year. This is consistent with the prior year decrease as well, and relates to the ongoing, regular repayment of the loan balance.

The largest remaining debt obligations are as follows:
- 2004, 2008, 2018 State Water Resources Control Board Loans – Original debt:
$83,826,034; 1.8% to 2.5% interest rate; due 4/30/26, 7/15/28, 10/3/42. 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 two of the three current loans.

Increase / (Decrease)
Governmental Activities 2025 2024 Amount %
Lease Revenue Bonds 179.9$ 185.1$ $ (2.8%) (5.2)
Plus: Unamortized Bond Premium 29.0 30.4 (1.4) (4.6%)
Loan payable to Successor Agency 1.2 1.2 0.0 0.0%
Total Governmental Activities Outstanding Debt 210.1$ 216.7$ $ (3.0%) (6.6) Business-type Activities
State Water Resources Board loans $ 54.5 50.4 $ (4.1)$ (7.5%) 2005 Sewer Bonds 0.9 1.2 (0.3) (25.0%)
Total Business-type Activities Outstanding Debt 51.3 $ 55.7 $ (4.4)$ (7.9%) 24 CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2025
- 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. The current outstanding principal amount as of June 30, 2025 is $38,745,000.
- 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. The current outstanding principal amount as of June 30, 2025 is $77,475,000.
- 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 construction 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 the replacement of two bridges over Colma Creek at Orange Memorial Park. Measure W sales tax revenue will fund the repayments. The current outstanding principal amount as of June 30, 2025 is $63,715,000.

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) $347,196,782 $44,822,925 $392,019,707 $4,699,423 Receivables:

Accounts 25,179,242 2,154,663 27,333,905 320,417
Accrued interest 1,819,911 226,833 2,046,744
Loans 503,689 503,689
Employee loans (Note 1T) 100,000 100,000
Leases (Note 10) 16,332,343 16,332,343
Deposits 343,790 343,790 45,423
Prepaid items 516,027 516,027
Restricted cash and investments (Note 2) 44,720,482 49 44,720,531 Properties held for redevelopment (Note 1O) 2,823,118 2,823,118 Capital assets (Note 3):

Nondepreciable 285,588,394 16,804,135 302,392,529
Depreciable, net accumulated depreciation 311,959,776 164,766,631 476,726,407 3,236,703 Total Assets 1,037,083,554 228,775,236 1,265,858,790 8,301,966

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7) 43,954,027 4,883,781 48,837,808 Related to OPEB (Note 9) 5,703,930 633,770 6,337,700
Total Deferred Outflows of Resources 49,657,957 5,517,551 55,175,508

LIABILITIES
Accounts payable 8,232,293 1,531,352 9,763,645 334,774
Accrued salaries and benefits 2,802,199 2,802,199 102,484 Accrued interest payable 652,211 701,324 1,353,535
Other payables 5,952,121 701,897 6,654,018
Deposits payable 4,720,977 7,500 4,728,477 337,675
Unearned revenue 6,297,605 92,250 6,389,855
Accrued insurance losses (Note 12):

Due within one year 3,776,422 3,776,422
Due in more than one year 14,911,000 14,911,000
Compensated absences obligation (Note 1M):

Due within one year 6,306,177 677,655 6,983,832
Due in more than one year 3,926,425 331,142 4,257,567
Debt and lease financing obligations (Note 5):

Due within one year 5,410,000 4,538,204 9,948,204
Due in more than one year 204,726,003 46,727,590 251,453,593 Lease liability (Note 10):

Due within one year 524,144
Due in more than one year 1,953,305
Subscription liability (Note 15):

Due within one year 162,614 162,614
Due in more than one year 627,388 627,388
Net pension liability - due in more than one year (Note 7) 216,650,139 24,072,238 240,722,377 Net OPEB Liability - due in more than one year (Note 9) 46,349,375 5,149,930 51,499,305 Total Liabilities 531,502,949 84,531,082 616,034,031 3,252,382

DEFERRED INFLOWS OF RESOURCES
Related to OPEB (Note 9) 2,466,147 274,017 2,740,164
Related to leases (Note 10) 15,313,241 15,313,241
Total Deferred Inflows of Resources 17,779,388 274,017 18,053,405 NET POSITION (Note 6)
Net investment in capital assets 431,828,976 130,304,972 562,133,948 759,254 Restricted for:

Debt service
Special revenue projects 54,280,192 54,280,192
Capital projects 114,860,840 114,860,840
Redevelopment and community development activities 2,823,118 2,823,118 Total Restricted Net Position 171,964,150 171,964,150
Unrestricted (66,333,952) 19,182,716 (47,151,236) 4,290,330 Total Net Position $537,459,174 $149,487,688 $686,946,862 $5,049,584 See accompanying notes to financial statements

CITY OF SOUTH SAN FRANCISCO

STATEMENT OF NET POSITION
JUNE 30, 2025
29 FOR THE YEAR ENDED JUNE 30, 2025
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government
Governmental Activities:

General Government $21,429,691 $4,454,627 $1,746,687
Fire 41,559,587 10,333,523 152,745
Police 41,473,028 2,291,346 1,259,421
Public Works 26,247,189 16,851,732 7,147,080 $4,455,653 Parks and Recreation 29,416,900 4,581,639 931,796
Library 8,521,025 64,714 405,201
Economic and Community Development 11,550,439 14,364,400 605,272 Interest on long term debt 6,696,089
Total Governmental Activities 186,893,948 52,941,981 12,248,202 4,455,653 Business-type Activities
Sewer 33,692,391 25,890,026 7,884,864 438,621
Parking District 1,298,272 979,173
Storm Water 1,908,769 458,116 409,624
Total Business-type Activities 36,899,432 27,327,315 7,884,864 848,245 Total Primary Government $223,793,380 $80,269,296 $20,133,066 $5,303,898 Component Unit
Conference Center $5,041,090 $3,189,649
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 capital assets
Miscellaneous
Transfers (Note 4)
Total general revenues, special item and transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
See accompanying notes to financial statements

CITY OF SOUTH SAN FRANCISCO

STATEMENT OF ACTIVITIES
Program Revenues
30 Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($15,228,377) ($15,228,377)
(31,073,319) (31,073,319)
(37,922,261) (37,922,261)
2,207,276 2,207,276
(23,903,465) (23,903,465)
(8,051,110) (8,051,110)
3,419,233 3,419,233
(6,696,089) (6,696,089)
(117,248,112) (117,248,112)
$521,120 521,120
(319,099) (319,099)
(1,041,029) (1,041,029)
(839,008) (839,008)
(117,248,112) (839,008) (118,087,120)
($1,851,441)
54,745,195 54,745,195
37,356,114 37,356,114
16,342,013 16,342,013 1,912,164
5,817,672 5,817,672
13,224,863 13,224,863
104,470 104,470
10,056,280 10,056,280
20,121,058 2,168,052 22,289,110 196,818
99,570 99,570
4,399,336 4,399,336 118,393
(1,145,573) 1,145,573
161,120,998 3,313,625 164,434,623 2,227,375
43,872,886 2,474,617 46,347,503 375,934
493,586,288 147,013,071 640,599,359 4,673,650
$537,459,174 $149,487,688 $686,946,862 $5,049,584
Primary Government
Net (Expenses) Revenues and Changes in Net Position
31 This Page Left Intentionally Blank

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 2025. 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.

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.

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).

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.
33 CITY OF SOUTH SAN FRANCISCO

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2025
Capital Projects Funds
Capital
Capital Improvement
General Capital Infrastructure Orange
Fund Improvement Reserve Memorial Park
ASSETS
Cash and investments (Note 2) $113,450,782 $777,930 $18,403,337 $620,315 Receivables:

Accounts 17,168,896 9,947,407
Accrued interest 591,434 110,100
Loans
Employee loans (Note 1T) 100,000
Leases (Note 10) 15,184,081
Due from other funds (Note 4B) 4,060,000
Restricted cash and investments (Note 2) 2,217,963 40,527,932 Properties held for redevelopment (Note 1O) 2,823,118
Total Assets $153,278,311 $12,943,300 $18,613,437 $41,148,247

LIABILITIES
Liabilities:

Accounts payable $2,817,918 $1,916,485 $1,720,578
Accrued salaries and benefits 2,802,199
Other payable 762,525 1,941,222 2,491,398
Deposits payable 374,883
Unearned revenue 2,447,505 2,772,438
Due to other funds (Note 4B) 4,060,000
Total Liabilities 9,205,030 10,690,145 4,211,976

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 3,216,649 7,686,595 Related to leases (Note 10) 14,218,797
Total Deferred Inflows of Resources 17,435,446 7,686,595

FUND BALANCE
Fund Balances (Note 6):

Nonspendable 965,284
Restricted 2,823,118 2,217,963 36,936,271
Committed 26,561,694
Assigned 3,916,275 $18,613,437
Unassigned 92,371,464 (7,651,403)
Total Fund Balances (Deficits) 126,637,835 (5,433,440) 18,613,437 36,936,271 Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) $153,278,311 $12,943,300 $18,613,437 $41,148,247 See accompanying notes to basic financial statements
34 Other Total
Governmental Governmental
Funds Funds
$168,526,013 $301,778,377
1,175,553 28,291,856
891,463 1,592,997
503,689 503,689
100,000
1,148,262 16,332,343
4,060,000
1,974,587 44,720,482
2,823,118
$174,219,567 $400,202,862
$681,047 $7,136,028
2,802,199
688,458 5,883,603
4,346,094 4,720,977
1,077,662 6,297,605
4,060,000
6,793,261 30,900,412
10,903,244
1,094,444 15,313,241
1,094,444 26,216,485
965,284
166,331,862 208,309,214
26,561,694
22,529,712
84,720,061
166,331,862 343,085,965
$174,219,567 $400,202,862
35 CITY OF SOUTH SAN FRANCISCO

GOVERNMENTAL FUNDS

BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL

FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES JUNE 30, 2025
Total fund balances reported on the governmental funds balance sheet $343,085,965 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. 591,686,930 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. 30,180,573
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 (210,136,003)
Subscription liability (790,002)
Interest payable (652,211)
Deferred outflows related pension 43,954,027
Deferred outflows related to OPEB 5,703,930
Net OPEB liability (46,349,375)
Net pension liability (216,650,139)
Deferred inflows related to OPEB (2,466,147)
Compensated absences (7,794,969)
Net position of governmental activities $537,459,174
See accompanying notes to financial statements
36 This Page Left Intentionally Blank

CITY OF SOUTH SAN FRANCISCO

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2025
Capital Projects Funds
Capital
Capital Improvement
General Capital Infrastructure Orange
Fund Improvement Reserve Memorial Park

REVENUES
Property taxes $62,234,044
Sales taxes 36,941,146
Transient occupancy taxes 16,342,013
Franchise Fees 5,817,672
Other taxes 13,224,863
Intergovernmental 4,658,449 $5,113,138
Interest and rentals 10,449,508 $1,035,204 $2,358,401
Licenses and permits 16,746,403
Charges for services 13,845,334 54,000
Fines and forfeitures 620,284
Other 860,358 2,713,131
Total Revenues 181,740,074 7,826,269 1,089,204 2,358,401

EXPENDITURES
Current:

City Council 312,971
City Clerk 1,208,189
City Treasurer 201,132
City Attorney 2,106,596
City Manager 3,778,155
Finance 3,362,755
Non-departmental 3,591,841
Human Resources 3,070,905
Fire 38,635,534
Police 37,678,179
Public Works 13,251,555 22,915,869 16,928,510
Parks and Recreation 24,582,794
Library 7,630,605
Economic and Community Development 9,943,144
Other
Debt service:

Principal repayments
Interest and fiscal charges
Total Expenditures 149,354,355 22,915,869 16,928,510

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 32,385,719 (15,089,600) 1,089,204 (14,570,109)

OTHER FINANCING SOURCES (USES)
Loss on sale of property held for redevelopment
Issuance of subscription liability (Note 15)
Transfers in (Note 4C) 1,480,000 13,675,298
Transfers out (Note 4C) (13,572,347) (1,848,694) (1,211,820) Total Other Financing Sources (Uses) (12,092,347) 13,675,298 (1,848,694) (1,211,820) Net Change in Fund Balances 20,293,372 (1,414,302) (759,490) (15,781,929) Fund balances - July 1 106,344,463 (4,019,138) 19,372,927 52,718,200 Fund balances (deficits) - June 30 $126,637,835 ($5,433,440) $18,613,437 $36,936,271 See accompanying notes to financial statements
38 Other Total
Governmental Governmental
Funds Funds
$2,567,431 $64,801,475
929,721 37,870,867
16,342,013
5,817,672
2,830,650 16,055,513
5,586,912 15,358,499
8,883,699 22,726,812
16,746,403
14,143,049 28,042,383
620,284
986,409 4,559,898
35,927,871 228,941,819
312,971
1,208,189
201,132
2,106,596
3,778,155
3,362,755
7,454 3,599,295
3,070,905
38,635,534
461,085 38,139,264
4,183,197 57,279,131
2,557,255 27,140,049
7,630,605
1,335,410 11,278,554
2,175,881 2,175,881
5,289,713 5,289,713
8,098,053 8,098,053
24,108,048 213,306,782
11,819,823 15,635,037
(347,247) (347,247)
909,715 909,715
16,045,797 31,201,095
(15,963,807) (32,596,668)
644,458 (833,105)
12,464,281 14,801,932
153,867,581 328,284,033
$166,331,862 $343,085,965
39 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, 2025
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $14,801,932 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 39,501,434
Current year depreciation (11,683,085)
Long-Term Debt Payments
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 5,170,000 Amortization of premium is added back to fund balance 1,382,613 Issuance of subscription liability is deducted from fund balance (790,002) 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 733,411
Interest payable 19,351
Compensated absences (289,551)
Net pension liability, deferred outflows and inflows of resources (10,440,272) Net OPEB liability, deferred outflows and inflows of resources 4,470,341 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. 996,714
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $43,872,886 See accompanying notes to financial statements
The amount below included in the Statement of Activities does not require the use 40 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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):

City Council 298,359 298,361 312,971 (14,610)
City Clerk 1,281,831 1,360,832 1,208,189 152,643
City Treasurer 174,298 174,298 201,132 (26,834)
City Attorney 1,458,825 2,258,825 2,106,596 152,229
City Manager 4,298,498 4,694,382 3,925,261 769,121
Finance 3,897,257 4,227,155 3,606,149 621,006
Non-departmental 1,394,367 1,685,630 3,591,841 (1,906,211) Human Resources 2,708,481 2,996,752 3,168,962 (172,210) Fire 36,420,902 38,075,667 38,735,327 (659,660)
Police 38,204,497 38,409,891 37,678,179 731,712
Public Works 11,103,629 14,414,464 14,282,149 132,315
Parks and Recreation 26,348,540 29,621,652 26,558,981 3,062,671 Library 8,860,056 9,141,287 7,630,605 1,510,682
Economic and Community Development 8,889,240 12,000,083 10,264,288 1,735,795 Total charges to appropriations 145,338,780 159,359,279 153,270,630 6,088,649

OTHER FINANCING SOURCES (USES)
Transfers in (Note 4C) 4,660,847 2,321,650 1,480,000 (841,650) Transfers out (Note 4C) (16,470,851) (25,717,061) (13,572,347) 12,144,714 Total Other Financing Sources (Uses) (11,810,004) (23,395,411) (12,092,347) 11,303,064 NET CHANGE IN FUND BALANCE ($8,389,107) ($25,068,880) 16,377,097 $41,445,977 Fund Balance - July 1 106,344,463
Adjustment to budgetary basis:

Encumbrance adjustments 3,916,275
Fund Balance - June 30 $126,637,835
See accompanying notes to financial statements
Budgeted Amounts
41 This Page Left Intentionally Blank

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.
43 CITY OF SOUTH SAN FRANCISCO

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2025
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) $37,956,884 $3,683,829 $3,182,212 $44,822,925 $45,418,405 Receivables:

Accounts 2,118,280 18,942 17,441 2,154,663 104,035
Accrued interest 190,089 21,128 15,616 226,833 226,914
Deposits 343,790
Prepaid items 516,027
Restricted cash and investments (Note 2) 49 49
Total current assets 40,265,302 3,723,899 3,215,269 47,204,470 46,609,171 Noncurrent assets:

Capital assets (Note 3):

Nondepreciable 2,065,464 421,149 14,317,522 16,804,135
Depreciable, net accumulated depreciation 154,536,784 8,757,710 1,472,137 164,766,631 5,861,240 Total non-current assets 156,602,248 9,178,859 15,789,659 181,570,766 5,861,240 Total Assets 196,867,550 12,902,758 19,004,928 228,775,236 52,470,411

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7) 4,883,781 4,883,781
Related to OPEB (Note 9) 633,770 633,770
Total Deferred Outflows of Resources 5,517,551 5,517,551

LIABILITIES
Current liabilities:

Accounts payable 1,219,265 10,668 301,419 1,531,352 1,096,265 Other payable 693,197 8,700 701,897 68,518
Accrued interest payable 701,324 701,324
Deposits payable 7,500 7,500
Unearned revenue 2,008 90,242 92,250
Due to other funds (Note 4B)
Accrued insurance loss (Note 12) 3,776,422
Compensated absences obligation (Note 1M) 617,038 10,347 50,270 677,655 1,067,987 Current portion of long-term debt (Note 5) 4,538,204 4,538,204 Total current liabilities 7,778,536 21,015 450,631 8,250,182 6,009,192 Noncurrent liabilities:

Accrued insurance losses (Note 12) 14,911,000
Compensated absences obligation (Note 1M) 308,131 12,158 10,853 331,142 1,369,646 Noncurrent portion of long-term debt (Note 5) 46,727,590 46,727,590 Net pension liability (Note 7) 24,072,238 24,072,238
Net OPEB liability (Note 9) 5,149,930 5,149,930
Total noncurrent liabilities 76,257,889 12,158 10,853 76,280,900 16,280,646 Total Liabilities 84,036,425 33,173 461,484 84,531,082 22,289,838

DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)
Related to OPEB (Note 9) 274,017 274,017
Total Deferred Inflows of resources 274,017 274,017
NET POSITION:

Net investment in capital assets 105,336,454 9,178,859 15,789,659 130,304,972 5,861,240 Unrestricted 12,738,205 3,690,726 2,753,785 19,182,716 24,319,333 Total Net Position $118,074,659 $12,869,585 $18,543,444 $149,487,688 $30,180,573 See accompanying notes to financial statements
44 CITY OF SOUTH SAN FRANCISCO

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2025
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds

OPERATING REVENUES
Charges for services $25,759,473 $457,216 $26,216,689 $35,331,925 Other cities' participation 7,884,864 7,884,864
Permit fees 130,553 130,553
Parking fees $979,173 979,173
Total Operating Revenues 33,774,890 979,173 457,216 35,211,279 35,331,925

OPERATING EXPENSES
Personnel expenses 11,472,520 390,360 1,391,834 13,254,714 23,279,050 Pension Expenses 1,160,031 1,160,031
OPEB Expenses (496,705) 1,667 (495,038)
Professional services 4,371,810 263,420 145,030 4,780,260 1,324,364 Program supplies 1,841,041 34,558 327,126 2,202,725 2,131,443 Insurance 176,440 3,094 179,534 4,236,494
Self-insurance and claims 2,478,337
Repair and maintenance 1,274,231 8,388 1,282,619 1,019,057 Rents 1,689,059 1,689,059
Utilities 2,032,282 207,608 19,912 2,259,802 288,633
Administration 1,814,545 150,434 54,805 2,019,784
Depreciation 7,286,990 250,225 33,651 7,570,866 1,574,124 Other 54,817 (75,071) (20,254) 691,148
Total Operating Expenses 32,677,061 1,298,272 1,908,769 35,884,102 37,022,650 Operating Income (Loss) 1,097,829 (319,099) (1,451,553) (672,823) (1,690,725)

NONOPERATING REVENUES (EXPENSES)
Interest income 1,822,105 198,932 147,015 2,168,052 2,137,607 Gain on dispositions of capital assets 99,570
Interest expense (1,015,330) (1,015,330)
Other 900 900 200,262
Total Nonoperating Revenues (Expenses) 806,775 198,932 147,915 1,153,622 2,437,439 Income (loss) before contributions and transfers 1,904,604 (120,167) (1,303,638) 480,799 746,714

TRANSFERS
Capital subventions and grants 438,621 409,624 848,245
Transfers in (Note 4C) 10,901 1,217,792 1,228,693 250,000 Transfers (out) (Note 4C) (83,120) (83,120)
Change in Net Position 2,354,126 (203,287) 323,778 2,474,617 996,714 Net Position - July 1 115,720,533 13,072,872 18,219,666 147,013,071 29,183,859 Net Position - June 30 $118,074,659 $12,869,585 $18,543,444 $149,487,688 $30,180,573 See accompanying notes to financial statements
45 CITY OF SOUTH SAN FRANCISCO

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
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 $33,554,630 $966,212 $540,929 $35,061,771 Cash payments to suppliers for goods and services (11,993,115) (652,420) (538,460) (13,183,995) ($8,825,369) Cash payments to employees for services (11,488,813) (389,253) (1,374,730) (13,252,796) (23,146,175) Cash received from interfund service provided 35,718,710 Cash payments for judgments and claims (2,027,674)
Net Cash Provided by (Used in) Operating Activities 10,072,702 (75,461) (1,372,261) 8,624,980 1,719,492

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers in 10,901 1,217,792 1,228,693 250,000
Transfers out (83,120) (83,120)
Net Cash Provided by Noncapital Financing Activities 10,901 (83,120) 1,217,792 1,145,573 250,000

CASH FLOWS FROM CAPITAL

AND RELATED FINANCING ACTIVITIES
Principal paid on long-term debt (4,433,082) (4,433,082) Interest paid on long-term debt (1,067,687) (1,067,687) Subventions and grants 438,621 409,624 848,245
Acquisition of capital assets, net (720,599) (570,320) (1,290,919) (1,950,345) Proceeds from the sale of capital assets 124,071
Net Cash Used in Capital and Related Financing Activities (5,782,747) (160,696) (5,943,443) (1,826,274)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid) 1,149,635 129,451 96,857 1,375,943 1,385,035 Changes in fair value of investments 636,980 70,798 52,328 760,106 760,378 Net Cash Provided by Investing Activities 1,786,615 200,249 149,185 2,136,049 2,145,413 Net Increase (Decrease) in cash and cash equivalents 6,087,471 41,668 (165,980) 5,963,159 2,288,631 Cash and cash equivalents, beginning 31,869,462 3,642,161 3,348,192 38,859,815 43,129,774 Cash and cash equivalents, ending $37,956,933 $3,683,829 $3,182,212 $44,822,974 $45,418,405 Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) $1,097,829 ($319,099) ($1,451,553) ($672,823) ($1,690,725) Adjustments to reconcile operating income (loss)
to cash flows from operating activities:

Depreciation 7,286,990 250,225 33,651 7,570,866 1,574,124 Other non-operating revenue (expenses) 900 900 200,262
Net change in assets and liabilities:

Accounts and lease receivables (177,326) (12,961) (7,429) (197,716) 186,523 Deposit (34,000)
Prepaid items 780,673
Accounts payable 603,971 3,600 82,176 689,747 125,443
Other payable 657,139 (137,352) 519,787 11,287
Unearned revenue (42,934) 90,242 47,308
Accrued insurance losses 450,663
(Decrease) increase due to retirement system 1,160,031 1,160,031 (Decrease) increase due to OPEB (496,704) (496,704)
Compensated absence obligations (16,294) 2,774 17,104 3,584 115,242 Net Cash Provided by (Used in) Operating Activities $10,072,702 ($75,461) ($1,372,261) $8,624,980 $1,719,492

NONCASH TRANSACTIONS
Retirement of capital assets ($24,501)
See accompanying notes to basic financial statements
46 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.
47 Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Cash and investments (Note 2) $152,523
Accounts receivable $141,274
Interest receivable 397 803
Advances to the City (Note 5) 1,166,152
Loans receivable (Note 14B) 80,572
Restricted cash and investments (Note 2) 8,307,395 5,281,745 Capital assets (Note 14C):

Nondepreciable 111,219
Depreciable, net accumulated depreciation 218,344
Total Assets 10,025,353 5,435,071

LIABILITIES
Accounts payable 1,068
Other payable 9,500
Total Liabilities 1,068 9,500

NET POSITION
Restricted for other purposes 10,024,285
Restricted for others 143,826
Restricted for bondholders 5,281,745
Total Net Position $10,024,285 $5,425,571
See accompanying notes to financial statements

CITY OF SOUTH SAN FRANCISCO

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2025
48 CITY OF SOUTH SAN FRANCISCO

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
Successor
Agency
Private Purpose
Trust Fund Custodial Funds

ADDITIONS
Property taxes $1,058,233
Plan contributions 42,010
Interest and rentals $450,335 106,480
Contributions from property owners 28,630,199
Total Additions 450,335 29,836,922

DEDUCTIONS
Economic and Community Development 3,102,603
Professional services 25,459,983
Payments to bondholders 1,529,258
Depreciation 6,594
Total Deductions 3,109,197 26,989,241
Change in net position (2,658,862) 2,847,681

NET POSITION
Beginning of the year 12,683,147 2,577,890
End of the year $10,024,285 $5,425,571
See accompanying notes to financial statements
49 This Page Left Intentionally Blank

CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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 2025. 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.

51 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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. South San Francisco Housing Authority
The South San Francisco Housing Authority was established by the City of South San Francisco in 1955 under the provisions of the State Health and Safety Code to address a shortage of low income housing in the City. Although the City Council appoints the Authority Commissioners, the City Council can only remove those appointed Commissioners for inefficiency, neglect of duty or misconduct. The Housing Authority operates independent of the City and the City is not financially accountable for the Housing Authority. Therefore, the operations of the Housing Authority are not included in the financial reporting entity of the City.

E. 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.

52 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.

F. 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.

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.

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).

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.

53 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 include the Employee Deferred Comp Trust Oversight Fund and the Community Facilities District 2021- 01, which accounted for payments of special assessment bonds.

G. 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 and right to use subscription 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. 54 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.

H. 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 Transit Station Enhancement In-Lieu Fee Special Revenue Fund; 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, 2025.

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.
55 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Certain indirect costs are included in program expenses reported for individual functions and activities.

I. 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, 2025:

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

City Council $14,610
City Treasurer 26,834
Non-departmental 1,906,211
Human Resources 172,210
Fire 659,660
Non-Major Funds:

Developer Contributions Special Revenue Fund 20,407
Maintenance Districts Special Revenue Fund 324,397
Supplemental Law Enforcement Services Special Revenue Fund 36,750 City Programs Special Revenue Fund 471,508
Sufficient resources were available within each fund to finance these excesses.

J. 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.

K. 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.

L. 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 and intangible right to use subscription assets, the measurement of which is discussed in Note 1S below.

56 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 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:

City
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
Authority
Buildings 30-40 years
Improvements 5-10 years
Machinery and vehicles 5-10 years
Furniture and fixtures 5-10 years
Food service equipment 5-15 years
Kitchen tableware 5-10 years
Office and maintenance equipment 2-5 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.

M. 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. However, the liability at the end of the fiscal year includes an estimate of the sick leave earned as of the end of the fiscal year and expected to be used.

57 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 $9,827,809 $1,005,213 $10,833,022
Net Change 404,793 3,584 408,377
Ending Balance $10,232,602 $1,008,797 $11,241,399
Current Portion $6,306,177 $677,655 $6,983,832
N. 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.

58 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. 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).

During fiscal year 2025, the City purchased one below market rate parcel for $682,312 and sold that parcel, along with one other purchased in the prior year for $729,031, for net proceeds of $1,064,096, resulting in a loss on sale of property of $347,247.

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

Q. 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.

R. 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.

S. Subscription Based Information Technology Arrangements (SBITAs) – A SBITA is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.

59 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets. The City recognizes subscription asset with an initial, individual value of $1,000,000 or more, based on the present value of future subscription payments remaining at the start of the agreement.

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription.

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

Subscription assets are reported with other capital assets and subscription liabilities are reported in the statement of net position. The City has one subscription agreement that met the capitalization threshold as of June 30, 2025.

T. Employee Downpayment Assistance Loan Program – The City established an employee down payment assistance loan program in 2017 and appropriated $1 million for the program, offering a loan of up to $100,000 to full-time employees that have passed their probationary period and are a first time homebuyer (meaning they have not owned a home in three years). The employee borrower is required to put down at least 3% of the purchase price and the loan term is up to 30 years and the home must be located within the counties of San Francisco and San Mateo. The loan does not bear interest, but is instead a shared appreciation loan. The loan becomes due and payable upon transfer of title, the home is no longer owner-occupied, upon a cash-out refinance, and/or when the employee no longer works for the City (the employee would have 12 months to refinance and repay the loan, with a one-time extension for a documented hardship).

In August 2023, the City loaned $100,000 to a City employee for the purpose of purchasing a home. The loan is secured by a deed of trust, has a term of 30 years and the shared appreciation is 6.23% of the principal outstanding on the loan divided by the purchase price, multiplied by the appreciation. The appreciation is calculated based on the difference between the purchase price and the sales price at the time of resale or the fair market value in the event of prepayment of the note or default or the amount paid by a creditor for title to the property if acquired through a deed in lieu of foreclosure, less any fees. If the employee prepays the loan on or before the 5th anniversary of the loan effective date, the shared appreciation is capped at the rate of 5%. In the event the employee rents any portion of the property, the rental payments are due and payable to the City.

60 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) U. 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.

V. New Accounting Pronouncement
GASB Statement No. 101 – In June 2022, GASB issued GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City implemented the provisions of this statement in fiscal year 2025, but it did not have a material effect on the financial statements.

GASB Statement No. 102 – In December 2023, GASB issued GASB Statement No. 102, - Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter.

GASB Statement No. 102 did not have an effect on the financial statements.

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.

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.

61 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
B. Classification
Cash and investments as of June 30, 2025 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 $392,019,707 Restricted cash and investments 44,720,531
Total Primary Government cash and investments 436,740,238 Statement of Fiduciary Net Position:

Cash and investments available for operations 152,523
Restricted cash and investments 13,589,140
Total Fiduciary cash and investments 13,741,663
Conference Center:

Cash and investments available for operations 4,699,423 Total South San Francisco
Conference Center cash and investments 4,699,423
Total cash and investments $455,181,324
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.

62 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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. Government
Sponsored Enterprise Obligations 5 years N/A No Limit (B) 25% Supranational Obligations 5 years AA 30% 10%
Corporate Medium-Term Notes 5 years A 30% 5% (C)
Asset-Backed Securities 5 years AA 20% 5%
Commercial Paper 270 days A-1, P-1 25% 5% (C)
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 per
acct No Limit
Money Market Mutual Funds N/A AAAm 20% 10%
Investment Rating System, or its equivalent.
(B) No more than 20% of the portfolio shall be invested in federal agency callable securities. (C) No more than 10% of the outstanding commercial paper and medium-term notes of any single issuer.
(A) The City's Investment Policy includes credit ratings provided by Standard and Poor's

63 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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.

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.

64 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
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 More than Five
1 year Years Years Total
City and Fiduciary:

U.S. Treasury Securities $100,028,237 $69,932,173 $169,960,410 Federal Agency Securities 960,110 17,643,354 18,603,464 Local Agency Investment Fund 78,711,804 78,711,804
Money Market Funds 46,172,766 46,172,766
Corporate Medium Term Notes 2,383,095 55,195,889 57,578,984 Asset-Backed Securities 60,438 42,830,131 42,890,569
Supranational Obligations 6,606,413 6,709,283 13,315,696 South San Francisco Conference Center:

Local Agency Investment Fund 4,495,426 4,495,426
Total Investments $239,418,289 $192,310,830 431,729,119 Cash in Banks and on Hand - City of South San Francisco 23,248,208 Cash in Banks and on Hand - South San Francisco Conference Center 203,997 Total Cash and Investments $455,181,324
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, 2025, these investments have an average maturity of 248 days.

Money market funds are available for withdrawal on demand and as of June 30, 2025 have an average maturity of 13 to 26 days.
65 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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, 2025, for each of the Primary Government’s investment types as provided by Moody’s investment rating system, except as noted:

Investment Type AAA/AAAmf Aa1-Aa3 A1-A3 Total
City and Fiduciary:

Federal Agency Securities $18,603,464 $18,603,464
Money Market Funds 46,172,766 46,172,766
Corporate Medium Term Notes 2,656,602 $27,185,281 $27,737,101 57,578,984 Asset-Backed Securities 10,628,633 20,225,305 30,853,938 Supranational Obligations 13,315,696 13,315,696
Totals $91,377,161 $47,410,586 $27,737,101 166,524,848
City and Fiduciary:

Not rated:

Asset-Backed Securities 12,036,631 (A)
Local Agency Investment Fund 78,711,804
Exempt from credit rating disclosure:

U.S. Treasury Securities 169,960,410
Not rated:

Local Agency Investment Fund 4,495,426
Total Investments $431,729,119
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.

66 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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, 2025:

Level 2 Total
Investments by Fair Value Level:

City and Fiduciary:

U.S. Treasury Securities $169,960,410 $169,960,410
Federal Agency Securities 18,603,464 18,603,464
Corporate Medium Term Notes 57,578,984 57,578,984
Asset Backed Securities 42,890,569 42,890,569
Supranational Obligations 13,315,696 13,315,696
Totals $302,349,123 302,349,123
Investments Measured at Amortized Cost:

City and Fiduciary:

Money Market Mutual Funds 46,172,766
Investments Exempt from Fair Value Hierarchy:

City and Fiduciary:

Local Agency Investment Fund 78,711,804
South San Francisco Conference Center:

Local Agency Investment Fund 4,495,426
Total Investments $431,729,119
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.

I. Concentration of Credit Risk
Investments in the securities of any individual issuer, other than U. S. Treasury securities, that represent 5 percent or more of total investments are as follows at June 30, 2025:

Issuer Investment Type Amount
Freddie Mac, Government Sponsored Enterprise:

Federal Home Loan Mortgage Corporation (FHLMC) Federal Agency Securities $960,110 Federal Home Multifamily Structured (FHMS) Asset-Backed Securities 14,857,070 67 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 3 – CAPITAL ASSETS
A. Capital Asset Changes – Changes in capital assets during the fiscal year consist of:

Balance
June 30, 2024 Additions Retirements Transfers
Balance
June 30, 2025
Governmental activities
Capital assets not being depreciated:

Land $77,728,302 $77,728,302
Construction in Progress 289,143,310 $38,064,350 ($119,347,568) 207,860,092 Total capital assets not being depreciated 366,871,612 38,064,350 (119,347,568) 285,588,394 Capital assets being depreciated:

Buildings and Improvements 153,581,195 103,425,238 257,006,433 Infrastructure - Streets 212,818,792 14,580,365 227,399,157 Infrastructure - Storm Drains 8,927,492 52,483 8,979,975 Infrastructure - Traffic Control Devices 17,588,940 1,289,482 18,878,422 Equipment and Vehicle 7,512,365 226,567 ($117,003) 7,621,929 Furniture and Fixtures 2,614,215 2,614,215
Subscription Asset 1,210,517 1,210,517
Total capital assets being depreciated 403,042,999 1,437,084 (117,003) 119,347,568 523,710,648 Less accumulated depreciation for:

Buildings and Improvements (53,957,743) (4,721,095) (58,678,838) Infrastructure - Streets (132,322,436) (5,645,061) (137,967,497) Infrastructure - Storm Drains (4,593,560) (205,025) (4,798,585) Infrastructure - Traffic Control Devices (6,322,445) (679,734) (7,002,179) Equipment and Vehicle (6,711,145) (110,603) 117,003 (6,704,745) Furniture and Fixtures (2,138,701) (79,464) (2,218,165) Subscription Asset (242,103) (242,103)
Total accumulated depreciation (206,046,030) (11,683,085) 117,003 (217,612,112) Net Governmental Fund
Capital Assets Being Depreciated 196,996,969 (10,246,001) 119,347,568 306,098,536 Internal Service Fund Capital Assets
Capital assets being depreciated:

Equipment and Vehicle 19,631,154 1,950,345 (200,303) 21,381,196 Accumulated depreciation (14,121,634) (1,574,124) 175,802 (15,519,956) Net Internal Service Fund Capital Assets
Being Depreciated 5,509,520 376,221 (24,501) 5,861,240
Governmental activities capital assets, net $569,378,101 $28,194,570 ($24,501) $597,548,170 Total capital assets not being depreciated $366,871,612 $38,064,350 ($119,347,568) $285,588,394 Net capital assets being depreciated 202,506,489 (9,869,780) ($24,501) 119,347,568 311,959,776 Governmental activities capital assets, net $569,378,101 $28,194,570 ($24,501) $597,548,170 68 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 3 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2024 Additions June 30, 2025
Business-type activities
Capital assets, not being depreciated:

Land $794,587 $794,587
Construction in Progress 14,718,629 $1,290,919 16,009,548 Total capital assets not being depreciated 15,513,216 1,290,919 16,804,135 Capital assets being depreciated:

Buildings and Improvements 152,231,555 152,231,555
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 19,204,767 19,204,767
Furniture and Fixtures 31,154 31,154
Total capital assets being depreciated 264,923,481 264,923,481 Less accumulated depreciation for:

Buildings and Improvements (30,175,982) (4,450,593) (34,626,575) Clean Water Facilities and Lines (41,576,403) (1,916,164) (43,492,567) Infrastructure - Storm Drains (2,134,672) (187,982) (2,322,654) Infrastructure - Streets (3,098,112) (209,569) (3,307,681) Equipment and Vehicle (15,569,661) (806,558) (16,376,219) Furniture and Fixtures (31,154) (31,154)
Total accumulated depreciation (92,585,984) (7,570,866) (100,156,850) Net capital assets being depreciated 172,337,497 (7,570,866) 164,766,631 Business-type activities capital assets, net $187,850,713 ($6,279,947) $181,570,766 Balance Balance
June 30, 2024 Additions Retirements June 30, 2025
Component Unit:

South San Francisco Conference Center
Capital assets not being depreciated:

Construction in Progress $23,925 ($23,925)
Capital assets being depreciated:

Depreciable:

Buildings and Improvements 11,057,560 $177,305 $11,234,865 Furniture and Fixtures 928,765 19,555 948,320
Machinery and Equipment 676,742 70,814 747,556
Total Depreciable 12,663,067 267,674 12,930,741
Right of Use Assets:

Leased Land 8,351,928 1,232,157 9,584,085
Total Capital Assets 21,014,995 1,499,831 22,514,826
Less accumulated depreciation and
amortization
Depreciable (11,345,619) (239,746) (11,585,365)
Leased Land (7,238,337) (454,421) (7,692,758)
(18,583,956) (694,167) (19,278,123)
Capital Assets Being Depreciated 2,431,039 805,664 3,236,703 Component Unit Capital Assets, Net $2,454,964 $805,664 ($23,925) $3,236,703

69 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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 $686,920
Fire 363,641
Police 1,092,798
Public works 7,777,153
Parks and recreation 1,104,615
Library 568,280
Economic and community development 89,678
Total Governmental Functions 11,683,085
Internal Service Funds 1,574,124
Total Governmental Activities $13,257,209
Business-Type Activities
Sewer Enterprise $7,286,990
Parking District 250,225
Storm Water 33,651
Total Business-Type Activities $7,570,866
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.

70 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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 $4,060,000 C. Transfers
With Council approval, resources may be transferred from one City fund to another without a requirement for repayment. Transfers between funds during the fiscal year ended June 30, 2025 were as follows:

FROM FUND (OUT) TO FUND (IN) AMOUNT
General Fund Capital Improvement Capital Projects Fund $837,106 Non-Major Governmental Funds 12,235,241
Storm Water Enterprise Fund 250,000
Health and Retirement Benefits Internal Service Fund 250,000 Capital Infrastructure Reserve Capital Projects Fund Capital Improvement Capital Projects Fund 1,550,902 Storm Water Enterprise Fund 297,792
Capital Improvements Orange Memorial
Park Capital Projects Fund Non-Major Governmental Funds 1,211,820 Non-Major Governmental Funds General Fund 1,480,000
Capital Improvement Capital Projects Fund 11,204,170
Non-Major Governmental Funds 2,598,736
Sewer Enterprise Fund 10,901
Storm Water Enterprise Fund 670,000
Parking District Enterprise Fund Capital Improvement Capital Projects Fund 83,120 Total $32,679,788

71 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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, 2025 follows:

Authorized
and Balance at Balance at Current
Issued June 30, 2024 Retirement June 30, 2025 Portion
Governmental Activities
Lease Revenue Bonds:
2020A Police Station Project, 4.00 to 5.00% (1) $43,905,000 $39,880,000 $1,135,000 $38,745,000 $1,190,000 Plus: Unamortized bond premium 8,345,765 379,353 7,966,412 2021A Community Civic Campus Project, 4.00% (2) 86,410,000 79,805,000 2,330,000 77,475,000 2,425,000 Plus: Unamortized bond premium 15,942,576 724,663 15,217,913 2022A Orange Memorial Park Project, 4.00 to 5.25% (3) 65,420,000 65,420,000 1,705,000 63,715,000 1,795,000 Plus: Unamortized bond premium 6,129,123 278,597 5,850,526 Total Lease Revenue Bonds 195,735,000 215,522,464 6,552,613 208,969,851 5,410,000 Direct Borrowing:
2007 Loans Payable to the Successor Agency (4) 1,166,152 1,166,152 Total Direct Borrowing 1,166,152 1,166,152
Net Governmental Long-Term Debt $195,735,000 $216,688,616 $6,552,613 $210,136,003 $5,410,000 Business-Type Activities
Revenue Bonds:
2005 Water and Wastewater Revenue Bonds, $6,000,000 $1,245,000 $395,000 $850,000 $415,000

2.75 to 4.75%, due 04/30/26 (5)
Direct Borrowing:
2004 State Water Resources Loan, 2.5%, due 1/1/27 (6) 21,258,529 2,702,349 1,334,493 1,367,856 1,367,856 2008 State Water Resources Loan, 2.4%, (7) 9,164,505 2,704,393 515,532 2,188,861 527,905 2018 State Water Resources Loan, 1.8% (8) 53,403,000 49,047,134 2,188,057 46,859,077 2,227,443 Total Direct Borrowing 83,826,034 54,453,876 4,038,082 50,415,794 4,123,204 Net Business-Type Long-Term Debt $89,826,034 $55,698,876 $4,433,082 $51,265,794 $4,538,204 (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.

72 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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) 2007 Loan Payable to the Successor Agency – As of June 30, 2023, 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 $2,050,152 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 Redevelopment 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.

73 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 5 – LONG-TERM DEBT (Continued)
(5) 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, 2025, the City is in compliance with the provisions of Article VI of the Installment Purchase Agreement associated with the 2005D Bonds.

The 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 $10,206,924 which represented coverage of 5.52 over the $1,849,427 in total debt service.
(6) In 2004, the State Water Resources Control Board (SWRCB) authorized a single loan to improve and expand the City’s wastewater treatment plant. Loan proceeds were issued as the projects progressed, with debt service payments commencing one year after project completion.

The loan agreements include provisions that, in the event of default, all principal payments shall be immediately due and payable, interest on all amounts owed shall be paid at the highest legal rate, and any additional payments shall be made. The SWRCB shall also enforce its rights under the agreements through any judicial proceedings, whether in law or equity. (7) 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.
(8) 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, was anticipated to be forgiven on the date of completion of construction. Construction was completed in October 2022, and the $4 million was forgiven during the year ended June 30, 2023.

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.

The first debt service payment started in the 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.
74 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 5 – LONG-TERM DEBT (Continued)
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 $25,759,473 which represented coverage of 7.05 over the $3,651,343 in debt service.

B. Debt Service Requirements
Future debt service requirements, including interest, but excluding the 2007 Loan payable to the Redevelopment Successor Agency in the amount of $1,166,152 at June 30, 2025, were as follows:

Governmental Activities Business-Type Activities
For the Year Lease Revenue Bonds
2005 Water and
Wastewater Revenue Bonds
Ended June 30 Principal Interest Principal Interest
2026 $5,410,000 $7,826,538 $415,000 $32,125
2027 5,650,000 7,580,287 435,000 10,875
2028 5,910,000 7,322,988
2029 6,165,000 7,066,837
2030 6,435,000 6,799,488
2031-2035 36,600,000 29,557,137
2036-2040 45,290,000 20,873,288
2041-2045 55,805,000 10,351,337
2046 12,670,000 565,550
179,935,000 $97,943,450 $850,000 $43,000
Plus: Unamortized bond premium 29,034,851
$208,969,851
Direct Borrowings
For the Year Business-Type Activities
Ended June 30 Principal Interest
2026 $4,123,204 $930,194
2027 2,808,110 843,532
2028 2,861,900 789,443
2029 2,916,737 734,607
2030 2,392,201 678,705
2031-2035 12,622,609 2,731,920
2036-2040 13,800,285 1,554,245
2041-2043 8,890,748 321,970
Totals $50,415,794 $8,584,616
75 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 5 – LONG-TERM DEBT (Continued)
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 still in service leased through the issuance of leasing arrangements follows:

Original
Leasing Arrangement Fund/Activity Cost
Lease Financed Purchases Governmental Activity $4,674,699 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, 2025, that amount was $1,245,263,840. As of June 30, 2025, 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, 2025 the outstanding balance of the issue was $19,510,000.

In June 2025 the Community Facilities District No. 2021-01 Special Tax Bonds, Series 2025 in the amount of $28,725,000 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, 2025 the outstanding balance of the issue was $28,725,000. 76 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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 Governmentwide 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.

77 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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.

Detailed classifications of the City’s Fund Balances, as of June 30, 2025, are below:

Capital Project Funds
Capital
Capital Improvements Other
General Capital Infrastructure Orange Governmental
Fund Balance Classifications Fund Improvement Reserve Fund Memorial Park Funds Nonspendables:

Items not in spendable form:

Leases $965,284
Total Nonspendable Fund Balances 965,284
Restricted for:

Civic campus projects $2,217,963 $36,936,271 $1,051,283 Police station projects 88,128
Redevelopment and community
development activities 2,823,118
Gas Tax projects 1,371,942
Developer contributions projects 8,208,727
Community Development Block Grant projects 345,305
Maintenance districts projects 5,255,490
Transportation sales tax projects 8,218,008
City programs projects 15,061,573
Low and moderate housing projects 3,040,281
Other Special Revenues projects 12,778,866
Capital projects activities 110,912,259
Total Restricted Fund Balances 2,823,118 2,217,963 36,936,271 166,331,862 Committed for:

Capital projects 3,322,575
Local services 23,239,119
Total Committed Fund Balances 26,561,694
Assigned to:

Capital projects 3,916,275
Capital infrastructure projects $18,613,437
Total Assigned Fund Balances 3,916,275 18,613,437
Unassigned:

General fund 92,371,464
Other fund deficits (7,651,403)
Total Unassigned Fund Balances 92,371,464 (7,651,403)
Total Fund Balances $126,637,835 ($5,433,440) $18,613,437 $36,936,271 $166,331,862

78 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
C. 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.

The City established a CalPERS Stabilization Reserve through two separate Council actions in November 2017 and November 2018 totaling $5.546 million. The Finance Department capitalized on the higher interest rate environment and set up a separate investment account with the City’s investment manager, Chandler, in December 2022 that yields a higher rate of return. As of June 30, 2025, the balance of the account has grown to $6.222 million. The Reserve is included in the Health and Retirement Benefits Internal Service Fund.

D. 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, 2025, were as listed below:

Amount
General Fund $3,916,275
Capital Improvement Capital Projects Fund 19,751,674
Capital Infrastructure Reserve Capital Projects Fund 1,612,169 Capital Improvements Orange Memorial Park 25,375,276
Other Governmental Funds 11,145,009
Total $61,800,403
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.

79 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 7 – PENSION PLAN (Continued)
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.

The Plans’ provisions and benefits in effect at June 30, 2025, 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 - 60 50 - 62
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% 7.25%
Required employer contribution rates 10.36% 10.36% 10.36% Required Unfunded Actuarial Liability Contribution $8,433,824 * 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% 12.5%
Required employer contribution rates 21.40% 21.40% 21.40% Required Unfunded Actuarial Liability Contribution $11,565,700 ** 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.
80 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 7 – PENSION PLAN (Continued)
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, 2025 were $8,433,824 and $11,565,700, respectively, which were made under the lump sum payment option.

Employees Covered – As of the June 30, 2023 actuarial valuation date and the June 30, 2024 measurement date, the following employees were covered by the benefit terms for the Plans:

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 526 334 Inactive employees entitled to but not yet receiving benefits 433 93 Active employees 294 160
Total 1,253 587
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. Payments made by the City to satisfy contribution requirements that are identified by the Plan terms as Plan member contribution requirements are classified as Plan member contributions.

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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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.

81 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 7 – PENSION PLAN (Continued)
Actuarial Assumptions – The total pension liabilities as of the June 30, 2024 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 benefit 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)
6/30/2023
6/30/2024
Entry-Age Actuarial Cost Method

6.90%
(4) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvements using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

2.30%
(2)

6.90% (3)
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter Derived using CalPERS Membership Data for all Funds (4)

2.80%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2023 valuation were based on the results of a November 2021 actuarial experience study for the period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was 6.90%. 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 benefit payments of current plan members for all plans in the PERF. Therefore, the long- term expected rate of return on plan investments was applied to all periods of projected benefit payments 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.

82 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 7 – PENSION PLAN (Continued)
In determining the long- term expected rate of return, CalPERS took into account both short- term and long- term market return expectations. Using historical returns of all the fund’s asset classes, expected compound (geometric) returns were calculated over the next 20 years using a buildingblock approach. The expected rate of return was then adjusted for assumed administrative expenses of 10 basis points.

The expected real rates of return by asset class are as follows:

Asset Class (a)
Assumed
Asset
Allocation
Real Return
(a), (b)
Global Equity-Cap Weighted 30.0% 4.54%
Global Equity-Non-Cap Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

83 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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, 2023 (Measurement Date) $293,145,123 $192,597,477 $100,547,646 Changes in the year:

Service cost 5,539,931 5,539,931
Interest on the total pension liability 20,351,772 20,351,772 Changes of benefit terms
Changes of assumptions
Differences between actual and expected experience 7,003,037 7,003,037 Plan to plan resource movement
Contribution - employer 10,853,888 (10,853,888)
Contribution - employees 2,654,448 (2,654,448)
Net investment income 18,547,760 (18,547,760)
Benefit payments, including refunds of employee
contributions (15,929,813) (15,929,813)
Administrative expenses (156,717) 156,717
Other Miscellaneous Income/(Expense)
Net changes 16,964,927 15,969,566 995,361
Balance at June 30, 2024 (Measurement Date) $310,110,050 $208,567,043 $101,543,007 Safety Plan:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2023 (Measurement Date) $422,856,036 $282,877,610 $139,978,426 Changes in the year:

Service cost 8,341,858 8,341,858
Interest on the total pension liability 29,275,851 29,275,851 Changes of benefit terms
Changes of assumptions
Differences between actual and expected experience 7,956,715 7,956,715 Plan to plan resource movement
Contribution - employer 15,797,176 (15,797,176)
Contribution - employees 3,430,511 (3,430,511)
Net investment income 27,375,971 (27,375,971)
Benefit payments, including refunds of employee
contributions (21,391,930) (21,391,930)
Administrative expenses (230,178) 230,178
Other Miscellaneous Income/(Expense)
Net changes 24,182,494 24,981,550 (799,056)
Balance at June 30, 2024 (Measurement Date) $447,038,530 $307,859,160 $139,179,370 Grand Total - Both Plans $757,148,580 $516,426,203 $240,722,377

84 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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 5.90% 5.90%
Net Pension Liability $142,086,995 $199,824,006
Current Discount Rate 6.90% 6.90%
Net Pension Liability $101,543,007 $139,179,370
1% Increase 7.90% 7.90%
Net Pension Liability $68,118,977 $89,515,041
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, 2025, the City recognized pension expense of $15,042,612 and $25,599,187 for the Miscellaneous and Safety Plans, respectively, for total pension expense of $40,641,799. At June 30, 2025, 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 $12,125,067 Changes of assumptions
Differences between actual and expected experience 5,492,034 Net differences between projected and actual earnings on plan investments 2,874,904
Total $20,492,005 $0
Safety Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $16,916,429 Changes of assumptions
Differences between actual and expected experience 7,287,756 Net differences between projected and actual earnings on plan investments 4,141,618
Total $28,345,803 $0
Grand Total - Both Plans $48,837,808 $0
85 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 7 – PENSION PLAN (Continued)
$29,041,496 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, 2026. 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
2026 $3,451,689
2027 6,822,472
2028 (835,997)
2029 (1,071,226)
Safety Plan:

Year Ended Annual
June 30 Amortization
2026 $3,698,756
2027 9,828,979
2028 (509,310)
2029 (1,589,051)
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.

86 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
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.

Benefits provided – The following is a summary of Plan benefits by employee group as of June 30, 2025:

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 2024/25:
- $2,149.23/month pre-65 (Blue Shield)
- $644.66/month post-65 Medicare eligible (Blue Shield) - $1,841.2/ month post-65 not Medicare eligible (Kaiser) • Medicare ineligible retirees allowed to stay in their pre-Medicare 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 retiree Other OPEB • City also reimburses Medicare Part B
• No City-paid contribution for dental, vision, or life For the year ended June 30, 2025, the City’s contributions to the Plan were $5,097,976.

Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the June 30, 2024 measurement date:

Active employees 147
Inactive employees or beneficiaries currently
receiving benefit payments 383
Total 530

87 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
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.

D. Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June 30, 2024 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, rolled forward to June 30, 2024, based on the following actuarial methods and assumptions:

Valuation Date • June 30, 2023
Measurement Date • June 30, 2024
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 17 years remaining for 2024/25 Asset Valuation Method • Investment gains and losses spread over 5-year rolling period • 6.25% at June 30, 2024
• 6.25% at June 30, 2023
• Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust.

Inflation • 2.50% annually
Salary Increases • Aggregate - 2.75% annually
• Merit - CalPERS 2000-2019 Experience Study
Healthcare/Medical Trend • Non-Medicare - 8.50% for 2025, decreasing to an ultimate rate of

3.45% in 2076
• Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076
• Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076.

Mortality, Retirement, Disability, Termination • CalPERS 2000-2019 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

88 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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 49.0% 4.56%
Fixed income 23.0% 1.56%
TIPS 5.0% -0.08%
Commodities 3.0% 1.22%
REITs 20.0% 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 6.25%. 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.

89 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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, 2024 (6/30/23 measurement date) $86,475,155 $32,765,173 $53,709,982 Changes Recognized for the Measurement Period:

Service Cost 1,270,367 1,270,367
Interest on the total OPEB liability 5,346,157 5,346,157 Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Contributions from the employer 5,215,767 (5,215,767)
Net investment income 3,622,178 (3,622,178)
Benefit payments (4,414,005) (4,414,005)
Administrative expenses (10,744) 10,744
Net changes 2,202,519 4,413,196 (2,210,677)
Balance at June 30, 2025 (6/30/24 measurement date) $88,677,674 $37,178,369 $51,499,305 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% (5.25%) (6.25%) (7.25%)
$62,338,147 $51,499,305 $42,470,373
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
$41,165,726 $51,499,305 $63,962,619

90 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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, 2025, the City recognized OPEB expense of $130,931. At June 30, 2025, 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 $5,097,976 Differences between actual and expected experience ($2,740,164) Changes in assumptions 926,770
Net differences between projected and actual earnings on plan investments 312,954
Total $6,337,700 ($2,740,164)
$5,097,976 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, 2026. 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
2026 ($1,876,843)
2027 1,013,518
2028 (324,582)
2029 (312,533)
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 $278,788. Employer contributions of $736,147 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.

91 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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, 2025, 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.

92 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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, 2025 were:

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

Conference Center $1,329,017 $1,504,566
Commercial Warehouse 3,302,910 3,121,498
Billboards 6,659,104 5,938,598
Park SFO 2,031,300 1,915,482
Bandwidth 1,861,750 1,738,653
Low and Moderate Income Housing Assets Fund:

Magnolia 1,148,262 1,094,444
Total governmental activities leases receivable $16,332,343 $15,313,241

93 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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 was 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 $49,129 in lease revenue and $278,398 in interest revenue during the current fiscal year related to this lease.

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

Commercial Warehouse – Price Club Associates leases land for the commercial warehouse on South Airport Boulevard from the City. Lease payments are based on a percentage of the commercial warehouse’s gross annual sales, with minimum annual rent set at $400,000, payable in monthly installments of $33,333. In fiscal 2014, the commercial warehouse 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 $328,599 in lease revenue and $103,921 in interest revenue during the current fiscal year related to this lease. Also, the City has deferred inflows of resources associated with this lease 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, 2025, the leases had 19 to 26 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 $252,170 in lease revenue and $201,847 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.

Park SFO – The City leases land for two parking garages at the San Francisco International Airport (SFO) to a third party under two lease agreements. The original terms of the leases were thirty and thirty-nine years and as of June 30, 2025, the leases had eleven years remaining. The annual rent increases 3% every five years. The City recognized $159,264 in lease revenue and $83,932 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.

Bandwidth – In October 2023, the City entered into an agreement to lease land to a third party for the installation of a fiber optic cable and conduit. The lease term is twenty-five years and the annual rent is increased by the shelter component of the consumer price index. The City recognized $151,187 in lease revenue and $75,095 in interest revenue during the current fiscal year related to this leases. Also, the City has deferred inflows of resources associated with the lease 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 per year, and are payable through the fiscal year 2062. The City recognized $29,580 in lease revenue and $34,953 in interest revenue during the current fiscal year related to this lease. Also, the City has deferred inflows of resources associated with this lease that will be recognized as revenue over the lease term. 94 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 10 – LEASES (Continued)
C. Lease Payable
The Conference Center Authority’s lease payable consists of the following as of June 30, 2025:

Balance Balance Current
June 30, 2024 Additions Deductions June 30, 2025 Portion Land Lease $1,699,888 $370,871 $1,329,017 $382,080
Parking Lease 245 $737,435 50,285 687,150 85,315
Parking Lease 255 494,722 33,440 461,282 56,749
$1,699,888 $1,232,157 $454,596 $2,477,449 $524,144
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 $370,871 and $49,129, 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 lease liability as of June 30, 2025 was $1,329,017. There are termination clauses included in the lease agreement, however management has determined that it is not likely that those clauses will be exercised.

In Fiscal Year 2025, the Authority entered into two lease agreements with Pacific Gas & Electric (PG&E) for parking lots located at 245 Airport Boulevard and 255 Airport Boulevard. Both leases commenced on October 1, 2024, and will expire on December 31, 2029. Under the terms of the agreements, the Authority is required to make initial annual lease payments of $79,200 for Lot 245 and $52,800 for Lot 255, with annual increases of 25% over the lease term.

For the year ended June 30, 2025, the total principal and interest paid under these leases were $83,725 and $31,775, respectively. The initial present value of the right-of-use assets recorded was $737,435 for Lot 245 and $494,722 for Lot 255, with a discount rate of 4.00%.

The balance of the right of use assets of all leases as of June 30, 2025 was $1,891,327, net of accumulated amortization of $7,692,758, which is reported with the Authority’s capital assets in Note 3. The balance of the lease liabilities as of June 30, 2025 was $2,477,449.

Future minimum lease payments as of June 30, 2025 are as follows:

Year Ending Principal Interest
June 30 Payments Payments Total
2026 $524,144 $81,477 $605,621
2027 588,693 63,333 652,026
2028 667,525 42,479 710,004
2029 496,132 18,272 514,404
2030 200,955 2,351 203,306
$2,477,449 $207,912 $2,685,361

95 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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.

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.

96 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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 $34,000,000 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, 2025, the City paid PLAN JPA $3,373,019 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 year ended June 30, 2025, the City paid PRISM $767,454 in premiums. Financial statements for PRISM may be obtained from PRISM, 75 Iron Point Circle, Suite 200, Folsom, CA 95630. For the past five fiscal years, general liability and worker compensation settlements did not exceed insurance coverage.

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, 2025 Fiscal Year
Workers' General 2023-2024
Compensation Liability Total Total
Balance, beginning of year $17,485,000 $751,759 $18,236,759 $17,284,062 Current year claims and changes in
estimates of prior years claims 2,522,853 325,166 2,848,019 3,399,713 Claims Paid (2,023,853) (373,503) (2,397,356) (2,447,016) Balance, end of year $17,984,000 $703,422 $18,687,422 $18,236,759 Current portion $3,073,000 $703,422 $3,776,422 $3,802,759 97 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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.

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. A Mandatory Settlement Conference took place in September 2025, and the dispute was resolved with a settlement of $2.4 million that was paid in October 2025 and the agreement that the contractor would not bid on City projects through December 31, 2026.

98 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 13 – COMMITMENTS AND CONTINGENCIES (Continued)
E. Housing Successor Excess Surplus
Health and Safety Code (HSC) Section 34176.1(d) defines an excess surplus as an unencumbered balance held by the housing successor that exceeds the greater of $1,000,000 or the aggregate amount deposited into the housing successor fund during the housing successor’s preceding four fiscal years, whichever is greater. If a housing successor has an excess surplus, the HSC Section requires that the housing successor encumber the excess surplus for eligible purposes described in the HSC Section 34176.1(a)(3) or transfer the funds to another local housing successor within three fiscal years. If the housing successor fails to comply with this provision, the housing successor, within 90 days of the end of the third fiscal year, is required to transfer any excess surplus to the Department of Housing and Community Development for expenditure pursuant to the Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program.

In the fiscal year 2022 Housing Successor Report an excess surplus of $1,076,383 that must be encumbered or expended within three fiscal years, or by the end of fiscal year 2025. This excess surplus was committed to a predevelopment loan for the Rotary Gardens (522 Linden) project on April 10, 2024 by Resolution 59-2024 and $131,641 of the $1,076,383 loan was expended in fiscal year 2025.

Furthermore, the fiscal year 2023 Housing Successor Report identified an additional excess surplus of $468,518, which must be encumbered or expended within three fiscal years, or by the end of fiscal year 2026. City staff is in the process of identifying a suitable project to spend down this excess surplus of $468,518 by the June 30, 2026 deadline.

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, 2025 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, 2025. 99 CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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.

100

CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:

Balance Balance
June 30, 2024 Additions June 30, 2025
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 237,684 237,684
Furniture and Fixtures 21,506 21,506
Total capital assets being depreciated 588,861 588,861
Less accumulated depreciation for:

Buildings and Improvements (104,733) ($6,594) (111,327) Equipment and Vehicle (237,684) (237,684)
Furniture and Fixtures (21,506) (21,506)
Total accumulated depreciation (363,923) (6,594) (370,517) Net capital assets being depreciated 224,938 (6,594) 218,344 Fiduciary activity capital assets, net $336,157 ($6,594) $329,563 D. Defeased Bonds
As of June 30, 2025, the outstanding balance of defeased debt was $2,105,000 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.

101

CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
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.

NOTE 15 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs)
Summary of Governmental Activities SBITA Transaction
A summary of governmental activities SBITA transactions for the fiscal year ended June 30, 2025, are as follows:

Balance as of Balance Current
June 30, 2024 Additions Retirements June 30, 2025 Portion Governmental Activities
Subscription Liabilities
Clariti Cloud Inc. $909,715 $119,713 $790,002 $162,614
Total $909,715 $119,713 $790,002 $162,614
In April 2025, the City entered into a five‐year SBITA for the use of Clariti Cloud, Inc. An initial subscription liability was recorded in the amount of $909,715 during the current fiscal year. As of June 30, 2025, the balance of the subscription liability was $790,002. The City is required to make annual principal and interest payments. The software has a five‐year estimated useful life.

The value of the right‐to‐use asset as of the end of the current fiscal year was $1,210,517 and had accumulated amortization of $242,103.

The future principal and interest subscription liability payments as of June 30, 2025, were as follows:

For the Year
Ended June 30 Principal Interest Total
2026 $162,614 $23,429 $186,043
2027 205,153 18,272 223,425
2028 202,693 12,667 215,360
2029 219,542 6,586 226,128
Total $790,002 $60,954 $850,956
102

CITY OF SOUTH SAN FRANCISCO

NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2025
NOTE 16 – SUBSEQUENT EVENTS
In June 2025, the City agreed to sell portions of city streets, including parts of DNA Way, Point San Bruno Boulevard, and Cabot Road, to Genentech for approximately $25 million as part of Genentech’s plan to consolidate and modernize its 200-acre campus, gaining control over these internal roads for future redevelopment. This move allows Genentech greater flexibility for its large-scale campus evolution, while the city benefits from reduced maintenance and potential future redevelopment of those areas. The sale took place in November 2025, which privatized the streets noted.
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REQUIRED SUPPLEMENTARY INFORMATION

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2025
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 Total Pension Liability
Service cost $3,075,813 $3,079,994 $3,922,518 $4,001,207 $4,118,735 $4,267,487 $4,274,015 $4,896,807 $5,072,877 $5,539,931 Interest on total pension liability 14,393,013 14,870,988 15,430,998 15,885,315 16,624,514 17,306,781 17,951,111 18,379,820 19,261,245 20,351,772 Changes of benefit terms 308,146
Changes of assumptions (3,374,655) 12,421,358 (1,361,078) 7,856,877 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 (893,635) 4,176,186 7,003,037 Benefit payments, including refunds of employee
contributions (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759) (14,547,349) (15,602,083) (15,929,813) Net change in total pension liability 2,119,130 6,388,816 22,167,646 6,548,097 10,840,309 10,008,794 9,411,310 15,692,520 13,216,371 16,964,927 Total pension liability - beginning 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922 264,236,232 279,928,752 293,145,123 Total pension liability - ending (a) 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922 264,236,232 279,928,752 293,145,123 310,110,050 Plan fiduciary net position
Contributions - employer $4,546,984 $5,726,981 $5,228,454 $6,165,764 $6,851,659 $7,823,463 $8,623,876 $9,491,964 $10,651,569 $10,853,888 Contributions - employee 1,411,273 1,622,453 1,720,600 1,727,041 1,816,507 1,883,698 2,006,497 2,293,651 2,150,828 2,654,448 Net investment income 3,221,551 687,860 15,616,363 12,458,090 10,240,873 8,084,207 38,008,815 (15,367,557) 11,414,408 18,547,760 Benefit payments, including refunds of employee
contributions (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759) (14,547,349) (15,602,083) (15,929,813) 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) (126,067) (135,392) (156,717) Other miscellaneous income (443,767) 365
Net change in plan fiduciary net position (1,438,258) (3,135,032) 10,794,553 7,508,391 6,040,122 4,223,869 34,638,872 (18,255,358) 8,479,330 15,969,566 Plan fiduciary net position - beginning 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633 202,373,505 184,118,147 192,597,477 Plan fiduciary net position - ending (b) 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633 202,373,505 184,118,147 192,597,477 208,567,043 Net pension liability - ending (a)-(b) $56,568,530 $66,092,378 $77,465,471 $76,505,177 $81,305,364 $87,090,289 $61,862,727 $95,810,605 $100,547,646 $101,543,007 Plan fiduciary net position as a percentage of the total pension liability 71.56% 67.80% 65.94% 67.30% 66.79% 65.82% 76.59% 65.77% 65.70% 67.26% 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 $31,400,311 $34,728,211 Net pension liability as percentage of covered payroll 317.83% 308.71% 263.57% 323.76% 325.31% 331.44% 223.48% 332.81% 320.21% 292.39% Notes to Schedule:

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, 2021, 2023, and 2024, there were no changes. In 2022, the accounting discount rate reduced from 7.15% to 6.90%. 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).
106

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2025
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years

SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2016 2017 2018 2019 2020
Actuarially determined contribution $5,399,856 $5,228,454 $6,166,024 $6,851,659 $7,831,598 Contributions in relation to the actuarially
determined contributions 5,399,856 5,228,454 6,166,024 6,851,659 7,831,598 Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 Contributions as a percentage of covered payroll 25.22% 17.79% 26.09% 27.41% 29.81% Valuation date: 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Fiscal Year Ended June 30 2021 2022 2023 2024 2025
Actuarially determined contribution $8,616,536 $9,491,640 $10,675,385 $8,928,580 $12,125,067 Contributions in relation to the actuarially
determined contributions 8,616,536 9,491,640 10,675,385 8,928,580 12,125,067 Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $27,681,286 $28,788,170 $31,400,311 $34,728,211 $36,702,450 Contributions as a percentage of covered payroll 31.13% 32.97% 34.00% 25.71% 33.04% Valuation date: 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 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, 2.625% for 2020,

2.50% for 2021 and 2022 and 2.30% for 2023, 2024, and 2025.

Salary increases
Investment rate of return
Retirement age
Mortality
Varies by entry age and service

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 MP2016 published by the Society of Actuaries. For 2023, 2024, and 2025, pre-retirement and post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries
107

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2025
Safety Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 Total Pension Liability
Service cost $4,968,087 $5,329,842 $6,264,307 $6,511,672 $6,379,124 $6,880,000 $7,072,216 $7,567,350 $7,558,887 $8,341,858 Interest on total pension liability 19,398,484 20,134,558 21,238,842 22,129,483 23,249,091 24,284,010 25,441,168 26,419,737 27,750,115 29,275,851 Changes of benefit terms 167,406
Changes of assumptions (4,789,129) 18,010,606 (1,293,579) 12,584,955 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 (684,769) 4,909,741 7,956,715 Benefit payments, including refunds of employee contributions (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787) (17,860,080) (21,698,219) (21,391,930) Net change in total pension liability 1,794,448 10,085,138 35,272,925 13,036,491 16,572,165 15,522,575 16,972,433 28,027,193 18,687,930 24,182,494 Total pension liability - beginning 266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480 376,140,913 404,168,106 422,856,036 Total pension liability - ending (a) 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480 376,140,913 404,168,106 422,856,036 447,038,530 Plan fiduciary net position
Contributions - employer $7,191,715 $8,535,737 $8,071,060 $9,323,936 $10,164,921 $11,402,434 $12,413,770 $13,387,919 $15,352,613 $15,797,176 Contributions - employee 1,714,039 1,961,907 1,980,507 2,134,552 2,486,989 2,890,991 2,893,339 2,886,541 3,143,555 3,430,511 Net investment income 4,264,997 950,612 21,553,126 17,363,158 14,404,633 11,506,885 54,912,645 (22,271,961) 16,694,253 27,375,971 Benefit payments, including refunds of employee contributions (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787) (17,860,080) (21,698,219) (21,391,930) 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) (182,910) (198,239) (230,178) Other miscellaneous income (617,378) 512
Net change in plan fiduciary net position (605,551) (3,134,936) 16,560,135 12,248,954 10,989,716 9,089,404 52,665,264 (24,040,491) 13,293,963 24,981,550 Plan fiduciary net position - beginning 195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874 293,624,138 269,583,647 282,877,610 Plan fiduciary net position - ending (b) 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874 293,624,138 269,583,647 282,877,610 307,859,160 Net pension liability - ending (a)-(b) $73,473,585 $86,693,659 $105,406,449 $106,193,986 $111,776,435 $118,209,606 $82,516,775 $134,584,459 $139,978,426 $139,179,370 Plan fiduciary net position as a percentage of the total pension liability 72.65% 68.90% 66.44% 67.53% 67.47% 67.09% 78.06% 66.70% 66.90% 68.87% 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 $26,580,095 $28,215,841 Net pension liability as percentage of covered payroll 440.49% 456.60% 538.79% 484.19% 486.51% 487.17% 338.48% 553.27% 526.63% 493.27% Notes to Schedule:

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).

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2025
Safety Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years

SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2016 2017 2018 2019 2020
Actuarially determined contribution $8,538,138 $8,071,060 $9,322,781 $10,164,821 $11,401,783 Contributions in relation to the actuarially
determined contributions 8,538,138 8,071,060 9,322,781 10,164,821 11,401,783 Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 Contributions as a percentage of covered payroll 44.97% 41.26% 42.51% 44.24% 46.99% Valuation date: 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Fiscal Year Ended June 30 2021 2022 2023 2024 2025
Actuarially determined contribution $12,413,770 $13,387,919 $15,352,613 $17,693,350 $16,916,429 Contributions in relation to the actuarially
determined contributions 12,413,770 13,387,919 15,352,613 17,693,350 16,916,429 Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $24,378,494 $24,325,363 $26,580,095 $28,215,841 $27,262,956 Contributions as a percentage of covered payroll 50.92% 55.04% 57.76% 62.71% 62.05% Valuation date: 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 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, 2.625% for 2020,

2.50% for 2021 and 2022 and 2.30% for 2023, 2024, and 2025.

Salary increases Varies by entry age and service
Investment rate of return
Retirement age
Mortality

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, 7.00% for 2021 and 2022 and 6.80% for 2023, 2024, and 2025 net of administrative expenses, including inflation
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. For 2023, 2024, and 2025, pre-retirement and post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries
The probabilities of Retirement are based on the CalPERS Experience Study.
109

CITY OF SOUTH SAN FRANCISCO

REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2025

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 6/30/2022 6/30/2023 6/30/2024 Total OPEB Liability
Service Cost $1,574 $1,535 $1,558 $1,604 $1,516 $1,374 $1,307 $1,270 Interest 5,087 5,325 5,568 5,952 6,058 5,704 5,866 5,346 Changes in benefit terms
Differences between expected and actual experience 91 2,895 (3,332) (16,441) Changes of assumptions (672) (1,859) 1,446 5,561
Benefit payments (2,901) (3,326) (3,378) (4,052) (4,009) (4,067) (4,749) (4,414) Net change in total OPEB liability 3,760 3,625 5,971 1,645 1,679 3,011 (8,456) 2,202 Total OPEB liability - beginning 75,240 79,000 82,625 88,596 90,241 91,920 94,931 86,475 Total OPEB liability - ending (a) $79,000 $82,625 $88,596 $90,241 $91,920 $94,931 $86,475 $88,677 Plan fiduciary net position
Contributions - employer $3,703 $4,128 $4,180 $4,854 $4,810 $4,869 $5,551 $5,216 Contributions - employee
Net investment income 1,803 1,566 1,402 838 7,141 (4,575) 1,953 3,622 Administrative expense (9) (37) (5) (12) (9) (9) (9) (11) Benefit payments (2,901) (3,326) (3,378) (4,052) (4,009) (4,067) (4,749) (4,414) Net change in plan fiduciary net position 2,596 2,331 2,199 1,628 7,933 (3,782) 2,746 4,413 Plan fiduciary net position - beginning 17,114 19,710 22,041 24,240 25,868 33,801 30,019 32,765 Plan fiduciary net position - ending (b) $19,710 $22,041 $24,240 $25,868 $33,801 $30,019 $32,765 $37,178 Net OPEB liability - ending (a)-(b) $59,290 $60,584 $64,356 $64,373 $58,119 $64,912 $53,710 $51,499 Plan fiduciary net position as a percentage of the total OPEB liability 24.95% 26.68% 27.36% 28.67% 36.77% 31.62% 37.89% 41.93% Covered-employee payroll $26,539 $26,986 $27,662 $28,215 $26,824 $25,079 $24,911 $24,095 Net OPEB liability as a percentage of covered-employee payroll 223.41% 224.50% 232.65% 228.15% 216.67% 258.83% 215.61% 213.73% * 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, 2025

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 2023 2024 2025 Actuarially determined contribution $6,279 $6,839 $6,995 $7,253 $7,373 $7,053 $7,058 $6,355 Contributions in relation to the
actuarially determined contribution 4,128 4,180 4,854 4,810 4,869 5,551 5,216 5,098 Contribution deficiency (excess) $2,151 $2,659 $2,141 $2,443 $2,504 $1,502 $1,842 $1,257 Covered-employee payroll $26,986 $27,662 $28,215 $26,824 $25,079 $24,911 $24,095 $22,263 Contributions as a percentage of
covered-employee payroll 15.30% 15.11% 17.20% 17.93% 19.41% 22.28% 21.65% 22.90% * Fiscal year 2018 was the first year of implementation.

Valuation Date • June 30, 2023
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 17 years remaining for 2024/25 • 6.25% at June 30, 2024
• 6.25% at June 30, 2023
• Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust.

3.45% in 2076
• Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076.

Mortality, Retirement, Disability, Termination • CalPERS 2000-2019 Experience Study Mortality Improvement • Mortality projected fully generational with Scale MP-2021 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
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SUPPLEMENTARY INFORMATION
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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
JUNE 30, 2025
General Purpose Measure W Total
ASSETS
Cash and investments $92,941,097 $20,509,685 $113,450,782 Receivables:

Accounts 14,439,462 2,729,434 17,168,896
Accrued interest 591,434 591,434
Leases 15,184,081 15,184,081
Due from other funds 4,060,000 4,060,000
Properties held for redevelopment 2,823,118 2,823,118
Total Assets $130,039,192 $23,239,119 $153,278,311

LIABILITIES
Accounts payable $2,817,918 $2,817,918
Accrued salaries and benefits 2,802,199 2,802,199
Other payable 762,525 762,525
Deposits 374,883 374,883
Unearned revenue 2,447,505 2,447,505
Total Liabilities 9,205,030 9,205,030

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 3,216,649 3,216,649 Related to leases 14,218,797 14,218,797
Total Deferred Inflows of Resources 17,435,446 17,435,446

FUND BALANCES
Nonspendable 965,284 965,284
Restricted 2,823,118 2,823,118
Committed 3,322,575 $23,239,119 26,561,694
Assigned 3,916,275 3,916,275
Unassigned 92,371,464 92,371,464
Total Fund Balances 103,398,716 23,239,119 126,637,835
Total Liabilities and Fund Balances $130,039,192 $23,239,119 $153,278,311

CITY OF SOUTH SAN FRANCISCO

GENERAL FUND

COMBINING BALANCE SHEETS
116
General Purpose Measure W Total

REVENUES
Property taxes $62,234,044 $62,234,044
Sales taxes 21,621,206 $15,319,940 36,941,146
Transient occupancy taxes 16,342,013 16,342,013
Franchise Fees 5,817,672 5,817,672
Other taxes 13,224,863 13,224,863
Intergovernmental 4,658,449 4,658,449
Interest and rentals 10,449,508 10,449,508
Licenses and permits 16,746,403 16,746,403
Charges for services 13,845,334 13,845,334
Fines and forfeitures 620,284 620,284
Other 860,358 860,358
Total Revenues 166,420,134 15,319,940 181,740,074

EXPENDITURES
Current:

City Council 312,971 312,971
City Clerk 1,208,189 1,208,189
City Treasurer 201,132 201,132
City Attorney 2,106,596 2,106,596
City Manager 3,428,417 349,738 3,778,155
Finance 3,362,755 3,362,755
Non-departmental 3,591,841 3,591,841
Human Resources 3,070,905 3,070,905
Fire 38,635,534 38,635,534
Police 37,678,179 37,678,179
Public Works 13,251,555 13,251,555
Parks and Recreation 24,582,794 24,582,794
Library 7,630,605 7,630,605
Economic and Community Development 9,943,144 9,943,144
Total Expenditures 149,004,617 349,738 149,354,355

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 17,415,517 14,970,202 32,385,719

OTHER FINANCING SOURCES (USES)
Transfers in 1,480,000 1,480,000
Transfers out (1,117,762) (12,454,585) (13,572,347)
Total Other Financing Sources (Uses) 362,238 (12,454,585) (12,092,347) Net Change in Fund Balances 17,777,755 2,515,617 20,293,372 Fund balance - July 1 85,620,961 20,723,502 106,344,463 Fund balance - June 30 $103,398,716 $23,239,119 $126,637,835

CITY OF SOUTH SAN FRANCISCO

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):

Property taxes $50,200,000 $57,100,000 $62,234,044 $5,134,044 Sales taxes 23,213,000 21,213,000 21,621,206 408,206
Transient occupancy taxes 14,500,000 14,836,000 16,342,013 1,506,013 Franchise fees 6,200,000 6,200,000 5,817,672 (382,328)
Other taxes 6,650,000 7,650,000 13,224,863 5,574,863
Intergovernmental 2,664,025 4,967,733 4,658,449 (309,284) Interest and rentals 4,455,000 5,659,000 10,449,508 4,790,508 Licenses and permits 13,160,152 13,620,152 16,746,403 3,126,251 Charges for services 10,562,000 10,760,275 13,845,334 3,085,059 Fines and forfeitures 873,000 873,000 620,284 (252,716) Other 282,500 306,650 860,358 553,708
Amounts available for appropriation 132,759,677 143,185,810 166,420,134 23,234,324 Charges to appropriations (outflows)
City Council 298,359 298,361 312,971 (14,610)
City Clerk 1,281,831 1,360,832 1,208,189 152,643
City Treasurer 174,298 174,298 201,132 (26,834)
City Attorney 1,458,825 2,258,825 2,106,596 152,229
City Manager 3,900,999 4,296,883 3,575,523 721,360
Finance 3,897,257 4,227,155 3,606,149 621,006
Non-departmental 1,394,367 1,685,630 3,591,841 (1,906,211) Human Resources 2,708,481 2,996,752 3,168,962 (172,210) Fire 36,420,902 38,075,667 38,735,327 (659,660)
Police 38,204,497 38,409,891 37,678,179 731,712
Public Works 11,103,629 14,414,464 14,282,149 132,315
Parks and Recreation 26,348,540 29,621,652 26,558,981 3,062,671 Library 8,860,056 9,141,287 7,630,605 1,510,682
Economic and Community Development 8,889,240 12,000,083 10,264,288 1,735,795 Total charges to appropriations 144,941,281 158,961,780 152,920,892 6,040,888

OTHER FINANCING SOURCES (USES)
Transfers in 4,660,847 2,321,650 1,480,000 (841,650)
Transfers out (500,000) (3,906,689) (1,117,762) 2,788,927 Total Other Financing Sources (Uses) 4,160,847 (1,585,039) 362,238 1,947,277 Net Change in Fund Balances ($8,020,757) ($17,361,009) 13,861,480 $31,222,489 Fund Balance - July 1 85,620,961
Adjustment to budgetary basis:

Encumbrance adjustments 3,916,275
Fund Balance - June 30 $103,398,716
(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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):

Property taxes
Sales taxes $16,000,000 $14,500,000 $15,319,940 $819,940 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 16,000,000 14,500,000 15,319,940 819,940 Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager 397,499 397,499 349,738 47,761
Finance
Non-departmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Total charges to appropriations 397,499 397,499 349,738 47,761

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (15,970,851) (21,810,372) (12,454,585) 9,355,787 Total Other Financing Sources (Uses) (15,970,851) (21,810,372) (12,454,585) 9,355,787 Net Change in Fund Balances ($368,350) ($7,707,871) 2,515,617 $10,223,488 Fund Balance - July 1 20,723,502
Adjustment to budgetary basis:

Encumbrance adjustments
Fund Balance - June 30 $23,239,119
(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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):

Property taxes $50,200,000 $57,100,000 $62,234,044 $5,134,044 Sales taxes 39,213,000 35,713,000 36,941,146 1,228,146
Transient occupancy taxes 14,500,000 14,836,000 16,342,013 1,506,013 Franchise fees 6,200,000 6,200,000 5,817,672 (382,328)
Other taxes 6,650,000 7,650,000 13,224,863 5,574,863
Intergovernmental 2,664,025 4,967,733 4,658,449 (309,284) Interest and rentals 4,455,000 5,659,000 10,449,508 4,790,508 Licenses and permits 13,160,152 13,620,152 16,746,403 3,126,251 Charges for services 10,562,000 10,760,275 13,845,334 3,085,059 Fines and forfeitures 873,000 873,000 620,284 (252,716) Other 282,500 306,650 860,358 553,708
Amounts available for appropriation 148,759,677 157,685,810 181,740,074 24,054,264 Charges to appropriations (outflows)
City Council 298,359 298,361 312,971 (14,610)
City Clerk 1,281,831 1,360,832 1,208,189 152,643
City Treasurer 174,298 174,298 201,132 (26,834)
City Attorney 1,458,825 2,258,825 2,106,596 152,229
City Manager 4,298,498 4,694,382 3,925,261 769,121
Finance 3,897,257 4,227,155 3,606,149 621,006
Non-departmental 1,394,367 1,685,630 3,591,841 (1,906,211) Human Resources 2,708,481 2,996,752 3,168,962 (172,210) Fire 36,420,902 38,075,667 38,735,327 (659,660)
Police 38,204,497 38,409,891 37,678,179 731,712
Public Works 11,103,629 14,414,464 14,282,149 132,315
Parks and Recreation 26,348,540 29,621,652 26,558,981 3,062,671 Library 8,860,056 9,141,287 7,630,605 1,510,682
Economic and Community Development 8,889,240 12,000,083 10,264,288 1,735,795 Total charges to appropriations 145,338,780 159,359,279 153,270,630 6,088,649

OTHER FINANCING SOURCES (USES)
Transfers in 4,660,847 2,321,650 1,480,000 (841,650)
Transfers out (16,470,851) (25,717,061) (13,572,347) 12,144,714 Total Other Financing Sources (Uses) (11,810,004) (23,395,411) (12,092,347) 11,303,064 Net Change in Fund Balances ($8,389,107) ($25,068,880) 16,377,097 $41,445,977 Fund Balance - July 1 106,344,463
Adjustment to budgetary basis:

Encumbrance adjustments 3,916,275
Fund Balance - June 30 $126,637,835
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.

Public Arts In-Lieu Fee – Accounts for development fee revenues that are collected and are required to be used for public art installations.

121
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Oyster Point CFD Special Tax B – Accounts for special assessment collections that are to be used for maintenance and administrative fees of the community facilities district.

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 – 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 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.

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.

122
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
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 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.

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. 123

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2025

SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
ASSETS
Cash and investments $1,206,877 $12,271,546 $4,941,281 $8,003,639 Receivables:

Accounts 159,062 310,266 $97,967 107,342 169,995
Accrued interest 6,003 61,327 44,374
Loans 116,461
Leases
Restricted cash and investments 688,823
Total Assets $1,371,942 $12,643,139 $903,251 $5,048,623 $8,218,008

LIABILITIES
Liabilities:

Accounts payable $104,632 $78,665 $64,308
Other payable 479,281
Deposits 4,329,780
Unearned revenue
Total Liabilities 4,434,412 557,946 64,308

DEFERRED INFLOWS OF RESOURCES
Related to leases
Fund Balances:

Restricted $1,371,942 8,208,727 345,305 4,984,315 $8,218,008 Total Fund Balances 1,371,942 8,208,727 345,305 4,984,315 8,218,008 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $1,371,942 $12,643,139 $903,251 $5,048,623 $8,218,008 124

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 $836,080 $893 $15,195,834 $1,613,514 $1,061,679 $3,046,308 $2,685,821 79 91,389 151,540
206 94,100 4,084 6,172 16,941 25,277
13,338
$836,080 $1,099 $15,289,934 $1,631,015 $1,159,240 $3,063,249 $2,862,638 $41,419 $228,361 $74,106
177
16,314
41,596 228,361 90,420
794,484 $1,099 15,061,573 1,540,595 $1,159,240 $3,063,249 $2,862,638 794,484 1,099 15,061,573 1,540,595 1,159,240 3,063,249 2,862,638 $836,080 $1,099 $15,289,934 $1,631,015 $1,159,240 $3,063,249 $2,862,638 (Continued)
125

SPECIAL REVENUE FUNDS
Low and
SMC Measure W Oyster Point Moderate American
1/2 Cent Public Arts CFD Income Rescue
Sales Tax In-Lieu Fee Special Tax B Housing Assets Plan Act ASSETS
Cash and investments $2,777,814 $483,757 $301,260 $2,603,071 $408,953 Receivables:

Accounts 82,764 5,149
Accrued interest 15,702 2,624 15,174
Loans 373,890
Leases 1,148,262
Restricted cash and investments
Total Assets $2,876,280 $486,381 $301,260 $4,145,546 $408,953

LIABILITIES
Liabilities:

Accounts payable $5,100 $13,863 $10,821
Other payable 16,222
Deposits
Unearned revenue $408,953
Total Liabilities 5,100 30,085 10,821 408,953

DEFERRED INFLOWS OF RESOURCES
Related to leases 1,094,444
Fund Balances:

Restricted $2,876,280 481,281 271,175 3,040,281
Total Fund Balances 2,876,280 481,281 271,175 3,040,281 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $2,876,280 $486,381 $301,260 $4,145,546 $408,953

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2025
126

CAPITAL PROJECTS FUNDS
Public Oyster Point Sewer Oyster Point Park Land Park Bicycle and Safety Improvement Capacity Development Acquisition Construction Pedestrian Impact Fee Impact Fees Charges Impact Fees Fee Fee Impact Fee $2,175,410 $56,915 $16,492,267 $34,461 $3,658,837 $16,806,885 $313,746 13,412 102 82,778 19,473 82,398 1,615
$2,188,822 $57,017 $16,575,045 $34,461 $3,678,310 $16,889,283 $315,361 $115
115
$2,188,822 $57,017 $16,575,045 34,346 $3,678,310 $16,889,283 $315,361 2,188,822 57,017 16,575,045 34,346 3,678,310 16,889,283 315,361 $2,188,822 $57,017 $16,575,045 $34,461 $3,678,310 $16,889,283 $315,361 (Continued)
127

CAPITAL PROJECTS FUNDS
Commercial East of 101
Linkage Library Sewer Traffic Child Care
Impact Fee Impact Fee Impact Fees Impact Fees Impact Fees ASSETS
Cash and investments $15,863,224 $51,779 $6,655,046 $31,605,342 $16,647,657 Receivables:

Accounts
Accrued interest 88,861 275 36,361 182,460 91,744
Loans
Leases
Restricted cash and investments
Total Assets $15,952,085 $52,054 $6,691,407 $31,787,802 $16,739,401

LIABILITIES
Liabilities:

Accounts payable $36,269
Other payable 12,405
Deposits
Unearned revenue
Total Liabilities 48,674

DEFERRED INFLOWS OF RESOURCES
Related to leases
Fund Balances:

Restricted 15,903,411 $52,054 $6,691,407 $31,787,802 $16,739,401 Total Fund Balances 15,903,411 52,054 6,691,407 31,787,802 16,739,401 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $15,952,085 $52,054 $6,691,407 $31,787,802 $16,739,401

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2025
128

CAPITAL PROJECTS DEBT SERVICE

FUNDS FUND
Total
Capital Capital Nonmajor
Improvement Improvement Debt Governmental
Police Station Civic Campus Service Funds
$1,077 $725,040 $168,526,013
1,175,553
891,463
503,689
1,148,262
88,128 1,197,636 1,974,587
$89,205 $1,922,676 $174,219,567
$23,388 $681,047
$1,077 179,296 688,458
4,346,094
668,709 1,077,662
1,077 871,393 6,793,261
1,094,444
88,128 1,051,283 166,331,862
88,128 1,051,283 166,331,862
$89,205 $1,922,676 $174,219,567
129

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

REVENUES
Property taxes $2,567,431
Sales taxes
Other taxes $2,094,162
Intergovernmental $2,231,670 $146,064 $342,922
Interest and rentals 57,264 573,771 13,623 417,720
Charges for services 1,900,579
Other 2,544 41,361
Total Revenues 2,288,934 2,622,958 397,906 2,567,431 2,511,882

EXPENDITURES
Current:

Fire
Police
Public works 1,467,068
Parks and recreation 2,557,255
Economic and community development 776,686 210,851
Non-departmental
Other
Debt service:

Principal repayments 119,713
Interest and fiscal charges 36,315
Total Expenditures 2,399,782 210,851 2,557,255

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,288,934 223,176 187,055 10,176 2,511,882

OTHER FINANCING SOURCES (USES)
Loss on sale of property held for redevelopment
Issuance of subscription liability 909,715
Transfers in
Transfers out (1,769,538) (758,568) (1,646,626)
Total Other Financing Sources (Uses) (1,769,538) 151,147 (1,646,626) Net Change in Fund Balances 519,396 374,323 187,055 10,176 865,256 Fund balances (deficits) - July 1 852,546 7,834,404 158,250 4,974,139 7,352,752 Fund balance - June 30 $1,371,942 $8,208,727 $345,305 $4,984,315 $8,218,008

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025
130

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 $194,673 $338,809
$174,647 $1,801,152
2,077 $867,855 232,241 $58,483 $159,800 235,063
234,017 47,926 10,915
502,982 227,259 170,090
408,664 196,750 1,418,763 809,224 228,573 159,800 2,036,215 36,750
358,233
792,508 723,004
358,233 36,750 792,508 723,004
50,431 160,000 626,255 86,220 228,573 159,800 2,036,215 890,000
(75,120) (160,000) (2,219,219) (3,633,188)
(75,120) (160,000) (2,219,219) 890,000 (3,633,188)
(24,689) (1,592,964) 976,220 228,573 159,800 (1,596,973) 819,173 1,099 16,654,537 564,375 930,667 2,903,449 4,459,611 $794,484 $1,099 $15,061,573 $1,540,595 $1,159,240 $3,063,249 $2,862,638 131

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025

SPECIAL REVENUE FUNDS
Low and
SMC Measure W Oyster Point Moderate American
1/2 Cent Public Arts CFD Income Rescue
Sales Tax In-Lieu Fee Special Tax B Housing Assets Plan Act

REVENUES
Property taxes
Sales taxes $929,721
Other taxes $203,006
Intergovernmental $869,988
Interest and rentals 149,299 $24,749 $331,391
Charges for services
Other 41,361
Total Revenues 1,079,020 24,749 203,006 372,752 869,988

EXPENDITURES
Current:

Fire
Police
Public works
Parks and recreation
Economic and community development 5,933 341,940
Non-departmental
Other 162,691
Debt service:

Principal repayments
Interest and fiscal charges
Total Expenditures 5,933 162,691 341,940

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,079,020 18,816 40,315 30,812 869,988

OTHER FINANCING SOURCES (USES)
Loss on sale of property held for redevelopment
Issuance of subscription liability
Transfers in
Transfers out (592,559) (869,988)
Total Other Financing Sources (Uses) (592,559) (869,988) Net Change in Fund Balances 486,461 18,816 40,315 30,812 Fund balances (deficits) - July 1 2,389,819 462,465 230,860 3,009,469 Fund balance - June 30 $2,876,280 $481,281 $271,175 $3,040,281 132

CAPITAL PROJECTS FUNDS
Public Oyster Point Sewer Oyster Point Park Land Park Bicycle and Safety Improvement Capacity Development Acquisition Construction Pedestrian Impact Fee Impact Fees Charges Impact Fees Fee Fee Impact Fee $20,469
$126,519 $965 $785,604 $184,828 $790,263 $15,392
524,585 2,185,521 550,438 4,076,416 46,793
651,104 965 2,971,125 20,469 735,266 4,866,679 62,185
400,000
3,727 21,801 15,000
400,000 3,727 21,801 15,000
251,104 965 2,967,398 (1,332) 720,266 4,866,679 62,185
(304,988) (161,980)
(304,988) (161,980)
(53,884) 965 2,967,398 (1,332) 558,286 4,866,679 62,185 2,242,706 56,052 13,607,647 35,678 3,120,024 12,022,604 253,176 $2,188,822 $57,017 $16,575,045 $34,346 $3,678,310 $16,889,283 $315,361 133

CITY OF SOUTH SAN FRANCISCO

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025

CAPITAL PROJECTS FUNDS
Commercial East of 101
Linkage Library Sewer Traffic Child Care
Impact Fee Impact Fee Impact Fees Impact Fees Impact Fees

REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental
Interest and rentals $841,890 $2,319 $342,965 $1,721,887 $867,824 Charges for services 1,704,240 5,797 2,261,746 594,076
Other 812
Total Revenues 2,546,942 8,116 342,965 3,983,633 1,461,900

EXPENDITURES
Current:

Fire
Police
Public works 3,727
Parks and recreation
Economic and community development
Non-departmental 3,727 3,727
Other 497,678
Debt service:

Principal repayments
Interest and fiscal charges
Total Expenditures 497,678 3,727 3,727 3,727

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,049,264 8,116 339,238 3,979,906 1,458,173

OTHER FINANCING SOURCES (USES)
Loss on sale of property held for redevelopment (347,247) Issuance of subscription liability
Transfers in 490,000
Transfers out (890,000) (10,901) (2,015,411) (365,721)
Total Other Financing Sources (Uses) (1,237,247) (10,901) (2,015,411) 124,279 Net Change in Fund Balances 812,017 8,116 328,337 1,964,495 1,582,452 Fund balances (deficits) - July 1 15,091,394 43,938 6,363,070 29,823,307 15,156,949 Fund balance - June 30 $15,903,411 $52,054 $6,691,407 $31,787,802 $16,739,401 134

CAPITAL PROJECTS DEBT SERVICE

FUNDS FUND
Total
Capital Capital Nonmajor
Improvement Improvement Debt Governmental
Police Station Civic Campus Service Funds
$2,567,431
929,721
2,830,650
5,586,912
$2,202 $77,705 8,883,699
14,143,049
986,409
2,202 77,705 35,927,871
24,335 461,085
2,313,641 4,183,197
2,557,255
1,335,410
7,454
2,175,881
$5,170,000 5,289,713
8,061,738 8,098,053
24,335 2,313,641 13,231,738 24,108,048
(22,133) (2,235,936) (13,231,738) 11,819,823
(347,247)
909,715
1,434,059 13,231,738 16,045,797
(490,000) (15,963,807)
944,059 13,231,738 644,458
(22,133) (1,291,877) 12,464,281
110,261 2,343,160 153,867,581
$88,128 $1,051,283 $166,331,862
135

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, 2025

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

REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $2,085,300 $2,231,670 $146,370 $146,064 $146,064 Interest and rentals 15,000 57,264 42,264 573,771 573,771 Charges for services $1,593,682 1,900,579 306,897
Other 2,544 2,544
Total Revenues 2,100,300 2,288,934 188,634 1,593,682 2,622,958 1,029,276

EXPENDITURES
Current:

Police
Public works 978,182 1,467,068 (488,886)
Parks and recreation
Economic and community development 1,401,193 776,686 624,507 Non-departmental
Other
Capital outlay
Debt service:

Principal repayments 119,713 (119,713)
Interest and fiscal charges 36,315 (36,315)
Total Expenditures 2,379,375 2,399,782 (20,407)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,100,300 2,288,934 188,634 (785,693) 223,176 1,008,869

OTHER FINANCING SOURCES (USES)
Issuance of subscription liability 909,715 909,715
Transfers in
Transfers out (2,343,922) (1,769,538) 574,384 (1,239,003) (758,568) 480,435 Total Other Financing Sources (Uses) (2,343,922) (1,769,538) 574,384 (1,239,003) 151,147 1,390,150 NET CHANGE IN FUND BALANCES ($243,622) 519,396 $763,018 ($2,024,696) 374,323 $2,399,019 Adjustment to budgetary basis:

Encumbrance adjustments
Fund balance - July 1 852,546 7,834,404
Fund balance - June 30 $1,371,942 $8,208,727

CITY OF SOUTH SAN FRANCISCO

DEVELOPER CONTRIBUTIONS
136

MAINTENANCE DISTRICTS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $2,218,746 $2,567,431 $348,685
$2,081,000 $2,094,162 $13,162
$1,418,000 $342,922 ($1,075,078)
5,000 13,623 8,623 25,000 417,720 392,720
200,000 (200,000)
41,361 41,361
1,623,000 397,906 (1,225,094) 2,218,746 2,567,431 348,685 2,106,000 2,511,882 405,882 2,232,858 2,557,255 (324,397)
1,473,211 379,816 1,093,395
1,473,211 379,816 1,093,395 2,232,858 2,557,255 (324,397) 149,789 18,090 (131,699) (14,112) 10,176 24,288 2,106,000 2,511,882 405,882 (462,090) 462,090 (7,222,574) (1,646,626) 5,575,948
(462,090) 462,090 (7,222,574) (1,646,626) 5,575,948
$149,789 18,090 ($131,699) ($476,202) 10,176 $486,378 ($5,116,574) 865,256 $5,981,830 168,965
158,250 4,974,139 7,352,752
$345,305 $4,984,315 $8,218,008
(Continued)

BLOCK GRANT

COMMUNITY DEVELOPMENT

TRANSPORTATION SALES TAX
137

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, 2025

SOLID WASTE REDUCTION
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Property taxes
Sales taxes
Other taxes $160,000 $194,673 $34,673
Intergovernmental $299,467 $174,647 ($124,820)
Interest and rentals 2,077 2,077
Charges for services 220,080 234,017 13,937
Other
Total Revenues 519,547 408,664 (110,883) 160,000 196,750 36,750

EXPENDITURES
Current:

Police 36,750 (36,750)
Public works 902,894 358,233 544,661
Parks and recreation
Economic and community development
Non-departmental
Other
Capital outlay
Debt service:

Principal repayments
Interest and fiscal charges
Total Expenditures 902,894 358,233 544,661 36,750 (36,750)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (383,347) 50,431 433,778 160,000 160,000

OTHER FINANCING SOURCES (USES)
Issuance of subscription liability
Transfers in
Transfers out (160,000) (75,120) 84,880 (160,000) (160,000) Total Other Financing Sources (Uses) (160,000) (75,120) 84,880 (160,000) (160,000) NET CHANGE IN FUND BALANCES ($543,347) (24,689) $518,658 Adjustment to budgetary basis:

Encumbrance adjustments
Fund balance - July 1 819,173 1,099
Fund balance - June 30 $794,484 $1,099

CITY OF SOUTH SAN FRANCISCO

ENFORCEMENT SERVICES

SUPPLEMENTAL LAW
138
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) $1,228,809 $338,809 ($890,000)
$867,855 $867,855 232,241 232,241 $5,000 $58,483 $53,483 47,926 47,926 10,915 10,915
502,982 502,982 227,259 227,259 125,000 170,090 45,090
1,418,763 1,418,763 1,228,809 809,224 (419,585) 130,000 228,573 98,573 25,000 25,000
$321,000 792,508 (471,508) 911,030 723,004 188,026
321,000 792,508 (471,508) 911,030 723,004 188,026 25,000 25,000 (321,000) 626,255 947,255 317,779 86,220 (231,559) 105,000 228,573 123,573 890,000 890,000
(12,128,208) (2,219,219) 9,908,989 (25,000) 25,000
(12,128,208) (2,219,219) 9,908,989 890,000 890,000 (25,000) 25,000 ($12,449,208) (1,592,964) $10,856,244 $1,207,779 976,220 ($231,559) $80,000 228,573 $148,573 16,654,537 564,375 930,667
$15,061,573 $1,540,595 $1,159,240
(Continued)

CITY PROGRAMS
139

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, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Property taxes
Sales taxes $974,258 $929,721 ($44,537)
Other taxes
Intergovernmental $1,696,230 $1,801,152 $104,922
Interest and rentals 235,063 235,063 149,299 149,299
Charges for services
Other
Total Revenues 1,696,230 2,036,215 339,985 974,258 1,079,020 104,762

EXPENDITURES
Current:

Police
Public works
Parks and recreation
Economic and community development
Non-departmental
Other
Capital outlay
Debt service:

Principal repayments
Interest and fiscal charges
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,696,230 2,036,215 339,985 974,258 1,079,020 104,762

OTHER FINANCING SOURCES (USES)
Issuance of subscription liability
Transfers in
Transfers out (5,608,648) (3,633,188) 1,975,460 (2,951,050) (592,559) 2,358,491 Total Other Financing Sources (Uses) (5,608,648) (3,633,188) 1,975,460 (2,951,050) (592,559) 2,358,491 NET CHANGE IN FUND BALANCES ($3,912,418) (1,596,973) $2,315,445 ($1,976,792) 486,461 $2,463,253 Adjustment to budgetary basis:

Encumbrance adjustments
Fund balance - July 1 4,459,611 2,389,819
Fund balance - June 30 $2,862,638 $2,876,280

CITY OF SOUTH SAN FRANCISCO

SMC MEASURE W
1/2 CENT SALES TAX

ROAD MAINTENANCE

AND REHABILITATION
140

IN-LIEU FEE SPECIAL TAX B HOUSING ASSETS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $200,000 $203,006 $3,006
$24,749 $24,749 $167,000 $331,391 $164,391
15,000 41,361 26,361
24,749 24,749 200,000 203,006 3,006 182,000 372,752 190,752 $63,500 18,501 44,999 1,827,090 1,291,751 535,339
311,000 162,691 148,309
120,000 120,000
183,500 18,501 164,999 311,000 162,691 148,309 1,827,090 1,291,751 535,339 (183,500) 6,248 189,748 (111,000) 40,315 151,315 (1,645,090) (918,999) 726,091 ($183,500) 6,248 $189,748 ($111,000) 40,315 $151,315 ($1,645,090) (918,999) $726,091 12,568 949,811
462,465 230,860 3,009,469
$481,281 $271,175 $3,040,281
(Continued)

PUBLIC ARTS OYSTER POINT CFD LOW AND MODERATE INCOME
141

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, 2025

PLAN ACT
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $869,988 $869,988
Interest and rentals
Charges for services
Other
Total Revenues 869,988 869,988

EXPENDITURES
Current:

Police
Public works
Parks and recreation
Economic and community development
Non-departmental
Other
Capital outlay
Debt service:

Principal repayments $5,170,000 $5,170,000
Interest and fiscal charges 8,061,738 8,061,738
Total Expenditures 13,231,738 13,231,738

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 869,988 869,988 (13,231,738) (13,231,738)

OTHER FINANCING SOURCES (USES)
Issuance of subscription liability
Transfers in 13,231,737 13,231,738 1
Transfers out ($1,278,941) (869,988) 408,953
Total Other Financing Sources (Uses) (1,278,941) (869,988) 408,953 13,231,737 13,231,738 1 NET CHANGE IN FUND BALANCES ($1,278,941) $1,278,941 ($1) $1 Adjustment to budgetary basis:

Encumbrance adjustments
Fund balance - July 1
Fund balance - June 30

CITY OF SOUTH SAN FRANCISCO

DEBT SERVICE FUND

AMERICAN RESCUE
142

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.

143

CITY OF SOUTH SAN FRANCISCO

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2025
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
ASSETS
Current assets:

Cash and investments $3,236,953 $21,671,892 $12,441,264 $8,068,296 $45,418,405 Receivables:

Accounts 18,540 85,495 104,035
Accrued interest 17,963 106,277 57,316 45,358 226,914
Deposit 250,000 93,790 343,790
Prepaid items 516,027 516,027
Total current assets 3,254,916 22,046,709 13,193,892 8,113,654 46,609,171 Noncurrent assets:

Capital assets:

Depreciable, net of accumulated depreciation 5,861,240 5,861,240 Total non-current assets 5,861,240 5,861,240
Total Assets 3,254,916 22,046,709 13,193,892 13,974,894 52,470,411

LIABILITIES
Current liabilities:

Accounts payable 413,115 176,392 242,880 263,878 1,096,265 Other payable 24,615 43,903 68,518
Current portion of accrued insurance loss 3,776,422 3,776,422 Current portion of compensated absences 131,343 936,644 1,067,987 Current portion of long-term debt
Total current liabilities 569,073 3,952,814 1,223,427 263,878 6,009,192 Noncurrent liabilities:

Accrued insurance loss 14,911,000 14,911,000
Compensated absences obligation 243,743 1,125,903 1,369,646 Total noncurrent liabilities 243,743 14,911,000 1,125,903 16,280,646 Total Liabilities 812,816 18,863,814 2,349,330 263,878 22,289,838 NET POSITION:

Net investment in capital assets 5,861,240 5,861,240
Unrestricted 2,442,100 3,182,895 10,844,562 7,849,776 24,319,333 Total Net Position $2,442,100 $3,182,895 $10,844,562 $13,711,016 $30,180,573 144
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total

OPERATING REVENUES
Charges for services $6,643,231 $8,090,315 $18,123,800 $2,474,579 $35,331,925 Total Operating Revenues 6,643,231 8,090,315 18,123,800 2,474,579 35,331,925

OPERATING EXPENSES
Personnel expenses 3,150,865 1,319,807 18,808,378 23,279,050 Professional services 954,712 369,652 1,324,364
Program supplies 2,111,310 30 500 19,603 2,131,443
Insurance 10,867 4,225,627 4,236,494
Self-insurance and claims 2,478,337 2,478,337
Repair and maintenance 556,145 462,912 1,019,057
Utilities 288,633 288,633
Depreciation 1,574,124 1,574,124
Other 23,140 668,008 691,148
Total Operating Expenses 7,095,672 8,393,453 19,476,886 2,056,639 37,022,650 Operating Income (Loss) (452,441) (303,138) (1,353,086) 417,940 (1,690,725)

NONOPERATING

REVENUES (EXPENSES)
Interest income 170,105 1,007,638 532,883 426,981 2,137,607 Gain from disposal of capital assets 99,570 99,570
Other 116,525 83,737 200,262
Total Nonoperating
Revenues (Expenses) 286,630 1,091,375 532,883 526,551 2,437,439 Net income (loss) before transfers (165,811) 788,237 (820,203) 944,491 746,714

TRANSFERS
Transfers in 250,000 250,000
Change in Net Position (165,811) 788,237 (570,203) 944,491 996,714 Net Position - July 1 2,607,911 2,394,658 11,414,765 12,766,525 29,183,859 Net Position - June 30 $2,442,100 $3,182,895 $10,844,562 $13,711,016 $30,180,573

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2025

CITY OF SOUTH SAN FRANCISCO
145

CITY OF SOUTH SAN FRANCISCO

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $6,759,756 $8,446,070 $18,038,305 $2,474,579 $35,718,710 Cash payments to suppliers for goods and services (3,944,807) (4,661,925) (218,637) (8,825,369) Cash payments to employees for services (3,082,985) (1,464,427) (18,598,763) (23,146,175) Cash payments for judgments and claims (2,027,674) (2,027,674) Net Cash Provided by Operating Activities (268,036) 292,044 (560,458) 2,255,942 1,719,492

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers in 250,000 250,000
Net Cash Provided by Noncapital Financing Activities 250,000 250,000

CASH FLOWS FROM CAPITAL

AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets, net (1,950,345) (1,950,345) Proceeds from the sale of capital assets 124,071 124,071 Net Cash Used in Capital and Related Financing Activities (1,826,274) (1,826,274)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 111,118 659,111 310,379 304,427 1,385,035 Changes in fair values of investments 60,191 356,130 192,064 151,993 760,378 Net Cash Provided by Investing Activities 171,309 1,015,241 502,443 456,420 2,145,413 Net Increase (Decrease) in cash and cash equivalents (96,727) 1,307,285 191,985 886,088 2,288,631 Cash and cash equivalents, beginning 3,333,680 20,364,607 12,249,279 7,182,208 43,129,774 Cash and cash equivalents, ending $3,236,953 $21,671,892 $12,441,264 $8,068,296 $45,418,405 Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) ($452,441) ($303,138) ($1,353,086) $417,940 ($1,690,725) Adjustments to reconcile operating income (loss)
to cash flows from operating activities:

Depreciation 1,574,124 1,574,124
Other non-operating revenue (expenses) 116,525 83,737 200,262 Net change in assets and liabilities:

Accounts receivable 272,018 (85,495) 186,523
Deposit (34,000) (34,000)
Prepaid items 780,673 780,673
Accounts payable 29,252 (144,620) (23,067) 263,878 125,443 Other payable (32,616) 43,903 11,287
Accrued insurance losses 450,663 450,663
Compensated absence obligations 38,628 76,614 115,242
Net Cash Provided by (Used in) Operating Activities ($268,036) $292,044 ($560,458) $2,255,942 $1,719,492 146

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.
147

CITY OF SOUTH SAN FRANCISCO

CUSTODIAL FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ASSETS
Cash and investments $152,523 $152,523
Interest receivable 803 803
Restricted cash and investments $5,281,745 5,281,745
Total Assets 153,326 5,281,745 5,435,071

LIABILITIES
Other payable 9,500 9,500

NET POSITION
Restricted for others 143,826 143,826
Restricted for bondholders 5,281,745 5,281,745
Total Net Position $143,826 $5,281,745 $5,425,571
148

CITY OF SOUTH SAN FRANCISCO

CUSTODIAL FUNDS

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2025
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL

ADDITIONS
Plan contributions $42,010 $42,010
Property taxes $1,058,233 1,058,233
Contribution from property owners 28,630,199 28,630,199 Interest and rentals 7,617 98,863 106,480
Total Additions 49,627 29,787,295 29,836,922

DEDUCTIONS
Professional services 35,695 25,424,288 25,459,983
Payments to bondholders 1,529,258 1,529,258
Total Deductions 35,695 26,953,546 26,989,241
Change in net position 13,932 2,833,749 2,847,681

NET POSITION
Beginning of the year 129,894 2,447,996 2,577,890
End of the year $143,826 $5,281,745 $5,425,571
149
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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 of Taxable Property

2. Direct and 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. Redevelopment Pledged 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
151
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.
152
2016 2017 2018 (a) 2019 2020
Governmental activities
Net investment in capital assets $231,142,079 $254,344,554 $254,570,044 $271,349,364 $296,243,640 Restricted 52,406,602 54,478,093 96,316,988 117,752,590 138,701,991 Unrestricted (120,119,617) (86,808,434) (129,833,581) (114,028,420) (130,288,161) Total governmental activities net position $163,429,064 $222,014,213 $221,053,451 $275,073,534 $304,657,470 Business-type activities
Net investment in capital assets $83,930,073 $86,167,704 $90,097,907 $100,463,280 $111,968,328 Restricted
Unrestricted 6,243,225 7,199,925 3,227,395 44,966 2,040,842 Total business-type activities net position $90,173,298 $93,367,629 $93,325,302 $100,508,246 $114,009,170 Primary government
Net investment in capital assets $315,072,152 $340,512,258 $344,667,951 $371,812,644 $408,211,968 Restricted 52,406,602 54,478,093 96,316,988 117,752,590 138,701,991 Unrestricted (113,876,392) (79,608,509) (126,606,186) (113,983,454) (128,247,319) Total primary government net position $253,602,362 $315,381,842 $314,378,753 $375,581,780 $418,666,640 2021 2022 2023 2024 2025
Governmental activities
Net investment in capital assets $316,169,957 $384,765,508 $390,845,692 $413,101,538 $431,828,976 Restricted 160,119,056 139,059,768 130,124,884 159,707,043 171,964,150 Unrestricted (144,181,245) (126,989,026) (86,635,416) (79,222,293) (66,333,952) Total governmental activities net position $332,107,768 $396,836,250 $434,335,160 $493,586,288 $537,459,174 Business-type activities
Net investment in capital assets $123,628,942 $133,598,554 $132,756,230 $132,151,837 $130,304,972 Restricted
Unrestricted 7,208,752 4,271,663 10,098,654 14,861,234 19,182,716 Total business-type activities net position $130,837,694 $137,870,217 $142,854,884 $147,013,071 $149,487,688 Primary government
Net investment in capital assets $439,798,899 $518,364,062 $523,601,922 $545,253,375 $562,133,948 Restricted 160,119,056 139,059,768 130,124,884 159,707,043 171,964,150 Unrestricted (136,972,493) (122,717,363) (76,536,762) (64,361,059) (47,151,236) Total primary government net position $462,945,462 $534,706,467 $577,190,044 $640,599,359 $686,946,862 Source: City of South San Francisco, Department of Finance (a) The City adjusted certain beginning balances during fiscal year 2017-18 due to the implementation of GASB Statement 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
2016 2017 2018(a)2019 2020 2021 2022 2023 2024 2025
Millions
Unrestricted
Restricted
Invested in Capital Assets Net of
Related Debt
153

CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2016 2017 2018 2019
Expenses
Governmental Activities:

General Government $9,044,518 $10,253,403 $12,506,188 $12,139,671 Fire Department 22,488,964 25,750,126 30,352,387 31,986,738 Police Department 23,158,168 25,838,242 30,732,288 32,994,122 Public Works 11,916,572 12,396,998 18,379,278 20,425,958 Park, Recreation and Maintenance Services 12,901,657 15,217,677 17,162,377 17,962,298 Library 4,442,577 5,184,282 5,910,406 6,241,093
Economic and Community Development 7,603,275 8,927,162 10,094,626 10,557,116 Interest on Long -Term Debt
Total Governmental Activities Expenses 91,555,731 103,567,890 125,137,550 132,306,996 Business-Type Activities:

Sewer Rental 18,273,580 22,661,768 24,397,607 25,719,049 Parking District 894,769 940,181 1,202,319 896,994
Storm Water 1,289,465 1,333,409 1,026,948 1,188,182
Total Business-Type Activities Expenses 20,457,814 24,935,358 26,626,874 27,804,225 Total Primary Government Expenses $112,013,545 $128,503,248 $151,764,424 $160,111,221 Program Revenues
Governmental Activities:

Charges for Services:

General Government $4,194,563 $2,225,049 $1,966,755 $7,930,983 Fire Department 3,450,524 4,242,940 6,327,921 6,052,804 Police Department 2,076,837 2,146,909 2,230,824 2,351,491 Public Works 10,361,525 10,869,608 24,727,897 27,811,701 Park, Recreation and Maintenance Services 3,744,137 3,756,369 4,489,665 4,293,474 Library 164,271 96,987 102,124 105,466
Economic and Community Development 6,131,463 3,911,597 13,052,441 14,214,991 Operating Grants and Contributions 5,581,492 4,533,539 5,827,149 12,091,079 Capital Grants and Contributions 1,147,337 577,995 2,515,868 1,629,730 Total Government Activities Program Revenues 36,852,149 32,360,993 61,240,644 76,481,719 Business-Type Activities:

Charges for Services:

Sewer Rental 19,569,341 19,897,769 22,417,156 24,078,076 Parking District 843,199 916,687 1,084,472 1,180,538
Storm Water 412,105 418,840 656,315 540,679
Operating Grants and Contributions 5,802,788 5,763,645 5,834,455 6,452,950 Capital Grants and Contributions
Total Business-Type Activities Program Revenue 26,627,433 26,996,941 29,992,398 32,252,243 Total Primary Government Program Revenues $63,479,582 $59,357,934 $91,233,042 $108,733,962 Net (Expense)/Revenue
Governmental Activities ($54,703,582) ($71,206,897) ($63,896,906) ($55,825,277) Business-Type Activities 6,169,619 2,061,583 3,365,524 4,448,018 Total Primary Government Net Expense ($48,533,963) ($69,145,314) ($60,531,382) ($51,377,259) 154
2020 2021 2022 2023 2024 2025
$15,378,452 $19,611,586 $20,793,108 $24,977,978 $16,789,551 $21,429,691 34,442,874 34,492,838 28,530,628 36,852,200 39,521,911 41,559,587 36,095,698 33,376,962 35,635,007 37,885,983 40,395,860 41,473,028 17,737,243 7,567,745 7,544,142 21,880,934 28,825,661 26,247,189 19,620,848 17,159,696 19,482,582 23,539,372 26,613,851 29,416,900 6,728,102 6,274,811 6,060,920 6,639,706 8,022,064 8,521,025 9,837,938 11,728,168 12,034,671 12,923,609 12,148,452 11,550,439 512,376 2,200,344 4,686,930 6,891,224 6,810,509 6,696,089 140,353,531 132,412,150 134,767,988 171,591,006 179,127,859 186,893,948 26,213,885 26,644,459 26,246,647 30,654,615 32,039,611 33,692,391 1,116,840 1,338,092 1,170,305 1,272,157 1,246,726 1,298,272 1,206,694 922,057 1,309,360 1,460,610 4,132,098 1,908,769 28,537,419 28,904,608 28,726,312 33,387,382 37,418,435 36,899,432 $168,890,950 $161,316,758 $163,494,300 $204,978,388 $216,546,294 $223,793,380 $5,217,199 $6,968,307 $5,413,298 $9,249,087 $9,018,870 $4,454,627 6,073,247 5,952,872 7,857,602 9,231,756 9,241,357 10,333,523 2,092,791 1,642,726 2,878,353 2,299,209 2,064,168 2,291,346 23,355,636 24,859,635 17,734,041 9,071,365 18,318,463 16,851,732 2,872,786 1,165,630 3,058,826 3,927,532 4,247,632 4,581,639 97,603 19,037 1,054,339 60,300 72,893 64,714
9,067,781 4,275,808 28,676,546 19,532,657 14,136,592 14,364,400 8,757,554 8,021,958 10,852,746 12,919,660 19,168,875 12,248,202 4,930,640 5,498,698 3,342,651 2,031,351 9,198,820 4,455,653 62,465,237 58,404,671 80,868,402 68,322,917 85,467,670 69,645,836 24,296,811 24,705,044 22,778,206 23,891,045 25,987,927 25,890,026 1,003,222 764,514 993,986 1,062,751 1,027,298 979,173
412,707 410,745 412,842 418,583 453,422 458,116
7,440,041 14,815,460 5,663,695 6,237,114 8,659,655 7,884,864 5,252,622 4,276,151 3,217,097 848,245
33,152,781 40,695,763 35,101,351 35,885,644 39,345,399 36,060,424 $95,618,018 $99,100,434 $115,969,753 $104,208,561 $124,813,069 $105,706,260 ($77,888,294) ($74,007,479) ($53,899,586) ($103,268,089) ($93,660,189) ($117,248,112) 4,615,362 11,791,155 6,375,039 2,498,262 1,926,964 (839,008) ($73,272,932) ($62,216,324) ($47,524,547) ($100,769,827) ($91,733,225) ($118,087,120) (Continued)
155

CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2016 2017 2018 2019
General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property Taxes $26,438,620 $29,023,618 $29,551,445 $33,446,750 Sales Taxes 15,188,686 24,087,776 28,340,393 31,843,568 Transient Occupancy Tax 13,393,437 13,631,507 13,978,533 17,091,222 Franchise fees 3,982,092 4,090,073 4,403,493 4,469,808
Other Taxes 5,124,574 5,708,187 5,871,096 4,995,404
Motor Vehicle In-Lieu 26,708 28,933 34,452 32,200
Property taxes in lieu of vehicle license fees 5,770,060 6,133,230 6,438,199 7,150,867 Interest Earnings 1,354,266 622,518 1,097,916 4,808,664 Gain from sale of property 840,298
Other 2,334,407 2,365,820 5,180,288 7,799,392
Extraordinary Item
Transfers (919,547) (1,105,038) (1,997,377) (2,101,222) Special items 45,205,422 (7,154,626) (531,591)
Total Government Activities 72,693,303 129,792,046 85,743,812 109,845,360 Business-Type Activities:

Interest Earnings 289,201 27,710 37,072 633,704
Transfers 919,547 1,105,038 1,997,377 2,101,222
Total Business-Type Activities 1,208,748 1,132,748 2,034,449 2,734,926 Total Primary Government $73,902,051 $130,924,794 $87,778,261 $112,580,286 Change in Net Position
Governmental Activities $17,989,721 $58,585,149 $21,846,906 $54,020,083 Business-Type Activities 7,378,367 3,194,331 5,399,973 7,182,944 Total Primary Government $25,368,088 $61,779,480 $27,246,879 $61,203,027 156
2020 2021 2022 2023 2024 2025
$37,415,367 $41,561,039 $40,011,221 $47,680,587 $52,201,446 $54,745,195 31,855,027 33,039,229 38,143,689 37,722,042 39,529,259 37,356,114 13,829,025 6,710,271 12,135,638 16,357,104 14,922,567 16,342,013 4,594,577 4,498,202 4,863,076 5,240,637 5,329,885 5,817,672 4,515,376 4,529,764 6,537,423 8,059,817 7,097,906 13,224,863 53,089 49,785 77,558 67,937 81,869 104,470
7,457,005 4,888,696 11,988,715 8,760,770 6,581,499 10,056,280 6,384,253 941,856 (6,724,092) 5,104,060 14,966,581 20,121,058 1,518,059 1,807,446 48,524 99,570
9,152,218 11,602,214 14,458,939 17,335,302 13,068,935 4,399,336 (8,060,646) (4,984,746) (1,419,235) (2,195,337) (917,154) (1,145,573) 276,939 (1,378,533) (2,962,923) (5,173,366)
107,472,230 101,457,777 118,628,068 140,766,999 152,911,317 161,120,998 824,916 52,623 (761,751) 291,068 1,314,069 2,168,052
8,060,646 4,984,746 1,419,235 2,195,337 917,154 1,145,573 8,885,562 5,037,369 657,484 2,486,405 2,231,223 3,313,625 $116,357,792 $106,495,146 $119,285,552 $143,253,404 $155,142,540 $164,434,623 $29,583,936 $27,450,298 $64,728,482 $37,498,910 $59,251,128 $43,872,886 13,500,924 16,828,524 7,032,523 4,984,667 4,158,187 2,474,617 $43,084,860 $44,278,822 $71,761,005 $42,483,577 $63,409,315 $46,347,503 157

CITY OF SOUTH SAN FRANCISCO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable $33,580 $474 $106 $372 $574 $574 $4,099 $477,122 $696,267 $965,284 Restricted 20,582,335 19,201,948 18,372,633 18,372,633 14,763,033 2,823,118 2,823,118 2,823,118 Committed 3,654,283 11,780,724 16,725,897 22,619,868 17,723,338 17,723,338 16,083,977 20,536,653 24,645,312 26,561,694 Assigned 1,578,153 5,244,279 4,334,322 11,881,363 5,720,788 5,720,788 7,482,439 8,661,539 7,761,552 3,916,275 Unassigned 17,751,169 39,278,746 19,644,232 31,239,632 43,296,762 43,296,762 38,313,108 56,060,734 70,418,214 92,371,464 Total General Fund $23,017,185 $56,304,223 $61,286,892 $84,943,183 $85,114,095 $85,114,095 $76,646,656 $88,559,166 $106,344,463 $126,637,835 (a) All Other Governmental Funds
Nonspendable $39,205
Restricted $52,938,897 $55,195,500 $78,603,366 103,135,202 $140,143,149 $140,143,149 $243,582,187 $204,257,085 $209,140,964 $205,486,096 Assigned 367,023 29,363,924 29,363,924 24,889,824 20,229,463 19,372,927 18,613,437 Unassigned (88,331) (11,073) (2,971,345) 235,649 235,649 (1,437,892) (1,004,155) (6,574,321) (7,651,403) Total all other governmental funds $53,305,920 $55,107,169 $78,592,293 $100,203,062 $169,742,722 $169,742,722 $267,034,119 $223,482,393 $221,939,570 $216,448,130 #REF! #REF! 76,323,105 111,411,392 139,879,185 139,879,185 185,146,245 343,680,775 343,085,965 (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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Thousands
Total Committed
Total Unassigned
Total Assigned
Total Restricted
Total Nonspendable
158
This Page Left Intentionally Blank

CITY OF SOUTH SAN FRANCISCO
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2016 2017 2018 2019
Revenues
Property Taxes $26,438,620 $35,156,848 $35,989,644 $40,597,617 Other Taxes 41,811,097 49,608,385 54,597,272 60,721,378 Intergovernmental revenues 12,360,354 4,019,771 8,433,240 13,179,593 Interest and Rents 4,207,453 3,100,692 3,524,727 7,231,303 Licenses and permits 6,896,897 7,823,403 14,674,809 15,381,416 Charges for services 15,386,358 14,485,367 31,961,419 41,055,659 Fines and forfeitures 791,756 899,118 423,604 926,729
Other 2,439,579 2,906,625 6,454,460 7,994,701
Total Revenues 110,332,114 118,000,209 156,059,175 187,088,396 Expenditures
Current:

General government 8,469,924 9,399,930 10,403,449 10,166,977 Fire Department 24,175,340 25,632,366 26,059,072 27,576,879 Police Department 25,458,986 25,998,097 26,970,854 28,533,292 Public works 14,846,346 12,143,965 23,859,399 38,459,963 Recreation and Community Services 13,234,028 14,897,157 15,468,370 16,530,603 Library 4,681,188 5,157,355 5,379,836 5,628,693
Economic and Community Development 7,907,655 8,943,111 9,338,793 9,085,390 Other 395,749 274,183 256,298 333,024
Capital outlay
Debt service:

Principal repayment 656,000 23,000 2,382,000 3,464,000
Interest and fiscal charges
Total Expenditures 99,825,216 102,469,164 120,118,071 139,778,821 Excess (deficiency) of revenues over
(under) expenditures 10,506,898 15,531,045 35,941,104 47,309,575 Other Financing Sources (Uses)
Transfers in 8,143,075 14,327,130 26,486,651 22,230,499 Transfers (out) (13,193,699) (16,368,499) (30,795,941) (24,581,721) Lease revenue bonds issued
Premium on bonds
Issuance of subscription liability
Sale of capital assets 1,016,276 3,990,605 840,298
Loss on sale of property held for resale
Total other financing sources (uses) (5,050,624) (1,025,093) (318,685) (1,510,924) Net Change in fund balances
before extraordinary and special items 5,456,274 14,505,952 35,622,419 45,798,651 Extraordinary item
Special item 20,582,335 (7,154,626) (531,591)
Net change in fund balances $5,456,274 $35,088,287 $28,467,793 $45,267,060 Debt service as a percentage of
noncapital expenditures 0.7% 0.0% 2.2% 3.0%
For The Fiscal Year Ended June 30,
160
2020 2021 2022 2023 2024 2025
$44,872,372 $46,449,735 $51,999,936 $56,441,357 $58,782,945 $64,801,475 57,214,783 51,008,432 64,411,396 70,762,243 69,927,534 76,086,065 18,317,060 17,867,273 24,822,304 19,574,277 29,520,611 15,358,499 8,864,998 3,620,391 (2,537,324) 7,857,199 16,653,189 22,726,812 15,900,500 15,589,002 14,062,474 20,467,644 13,978,818 16,746,403 27,442,005 23,191,413 45,787,046 27,477,040 38,550,457 28,042,383 814,354 535,750 700,961 757,019 480,957 620,284
3,067,691 7,893,148 2,524,116 11,321,587 4,263,092 4,559,898 176,493,763 166,155,144 201,770,909 214,658,366 232,157,603 228,941,819 12,453,262 12,112,319 15,422,722 15,449,760 14,093,575 17,639,998 28,161,459 31,817,325 32,597,540 35,641,540 36,822,120 38,635,534 37,468,430 70,954,323 39,678,917 36,493,052 37,348,050 38,139,264 40,070,330 51,501,254 87,823,372 89,991,879 60,780,649 57,279,131 17,130,302 15,795,645 20,295,842 22,598,050 25,190,188 27,140,049 5,940,870 5,903,883 6,495,279 6,475,274 7,706,106 7,630,605 8,780,903 11,227,503 12,709,167 12,775,661 11,947,748 11,278,554 723,901 3,490,091 5,610,278 2,161,116 1,478,859 2,175,881 5,520,422 141,250 6,971,342
1,210,000 975,000 4,635,000 3,285,000 4,204,000 5,289,713 739,146 2,307,460 5,525,760 8,280,065 8,205,338 8,098,053 152,678,603 206,084,803 236,314,299 233,292,647 214,747,975 213,306,782 23,815,160 (39,929,659) (34,543,390) (18,634,281) 17,409,628 15,635,037 38,117,966 37,970,252 36,220,467 30,464,581 37,437,496 31,201,095 (46,647,023) (43,202,081) (38,772,007) (33,708,360) (38,604,650) (32,596,668) 43,905,000 86,410,000 65,420,000
10,242,530 18,116,565 6,686,317
909,715
(2,718,691) 1,507,641 1,852,123
(6,439,913) (347,247)
45,618,473 96,576,045 71,062,418 (7,831,569) (1,167,154) (833,105) 69,433,633 56,646,386 36,519,028 (26,465,850) 16,242,474 14,801,932 276,939 (1,378,533) (2,962,923) (5,173,366)
$69,710,572 $55,267,853 $33,556,105 ($31,639,216) $16,242,474 $14,801,932

1.7% 2.9% 8.9% 7.3% 7.4% 7.7%
For The Fiscal Year Ended June 30,
161
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) 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% 2023 10,164,770,095 $ $ 4,381,130,308 $ 10,124,533,866 $ 656,275,416 $ 25,326,709,685 $ 2,403,730,974 $ 27,730,440,659 $ 27,730,440,659 0.13605% 2024 10,795,600,492 $ $ 4,711,933,520 $ 11,823,798,494 $ 830,930,966 $ 28,162,263,472 $ 2,729,928,793 $ 30,892,192,265 $ 30,892,192,265 0.13627% 2025 11,418,071,626 $ $ 5,100,117,870 $ 12,871,372,580 $ 1,114,417,361 $ 30,503,979,437 $ 2,703,056,286 $ 33,207,035,723 $ 33,207,035,723 0.13657% Source: HdL Coren & Cone, San Mateo County Assessor 2015/16-2024/25 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
$35,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Series1 Series2
162
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
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)
2023 1.000 0.1408 1.1408 (1,29)
2024 1.000 0.2086 1.2086 (1,30)
2025 1.000 0.1892 1.1892 (1,31)
Notes:

Source: HDL, Coren & Cone (San Mateo County Assesor 2015/16 -2024/25 Tax Rate Table (31) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0873, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.1197 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021 and SM Jr College bonds. 1 has a rate of 1.0865, which includes San Bruno Pk Elem bond, SM Union High bond, SM High, SMCCCD 2021 and San Mateo Jr. Coll bonds.
(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.
(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. (30) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0946, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.133 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021 and SM Jr College bonds. 1 has a rate of 1.0934, which includes San Bruno Pk Elem bond, SM Union High bond, SM High, SMCCCD 2021 and San Mateo Jr. Coll bonds.
(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.
(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.
(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.
(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.
(29) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0499, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.1102 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021 and SM Jr College bonds. 1 has a rate of 1.1026, which includes San Bruno Pk Elem bond, SM Union High bond, SM High, SMCCCD 2021 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. 163
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.* $3,342,613,533 1 10.07% $1,789,391,673 1 11.56% HCP Oyster Point III LLC 896,483,155 2 2.70% 1,083,914,651 2 7.00% Slough SSF LLC 756,880,837 3 2.28% 434,382,623 3 2.81%
Kilroy Realty LP 638,676,951 4 1.92% --
KR Oyster Point II LLC 626,011,705 5 1.89% --
ARE San Francisco LLC* 524,909,158 6 1.58% --
BMR 750 800 850 Gateway LP* 495,462,097 7 1.49% --
GNS North Tower LP* 494,366,305 8 1.49% --
BMR 1000 Gateway LP 487,176,580 9 1.47% --
GNS South Tower LP* 452,967,255 10 1.36% --
Britannia Pointe Grand LP* 293,120,070 4 1.89%
United Airlines Inc -- 209,576,648 5 1.35%
Gateway Center LLC* -- 141,377,473 6 0.91%
AP3-SF2 CT South LLC* -- 139,343,336 7 0.90%
BMR 180 Oyster Point LLC* -- 120,500,000 8 0.78%
SFF Logistics Inc -- 120,357,640 9 0.78%
ASN Solaire LLC 109,279,633 10 0.71%
Subtotal $8,715,547,576 26.25% $4,441,243,747 28.69%

Total Net Assessed Valuation:

Fiscal Year 2024-25 $33,207,035,723
Fiscal Year 2015-16 $15,480,797,766
* Pending Appeals on Parcels
Source:

HdL Coren & Cone, 2015/16 & 2024/25 Top Ten Property Taxpayers (Net Values).

San Mateo County Assessor 2015/16 & 2024/25 Combined Tax Rolls and the SBE Non Unitary Tax Roll 2024-25 2015-16

CITY OF SOUTH SAN FRANCISCO
Principal Property Tax Payers
Current Year and Nine Years Ago
164
Fiscal Percent of
Year Allocations (5) Collections Delinquencies Delinquent taxes 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%
2023 25,780,768 (4) (4) 0.0%
2024 29,600,068 (4) (4) 0.0%
2025 30,242,848 (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
26 27
28 29
30 31
32 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
165

CITY OF SOUTH SAN FRANCISCO
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Loans from Lease
Fiscal Successor Revenue Subscription Lease
Year Agency Bonds Liability Financing Total
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
2023 2,050,152 220,225,077 - - 222,275,229
2024 1,166,152 215,522,464 - - 216,688,616
2025 1,166,152 208,969,851 790,002 - 210,926,005
Business-Type Activities
Sewer State Water Total Percentage
Fiscal Revenue Resources Primary of Personal Per
Year Bonds Loans Total Government Income (a) Capita (a) 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 1.81% 651.73 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 8.55% 4,506.43 2023 1,620,000 58,447,078 60,067,078 282,342,307 7.42% 4,370.56 2024 1,245,000 54,453,876 55,698,876 272,387,492 6.88% 4,165.14 2025 850,000 50,415,794 51,265,794 262,191,799 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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Total Governmental Total Business
166

CITY OF SOUTH SAN FRANCISCO

COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2025
2024-25 Assessed Valuation: $33,207,035,723
Redevelopment Incremental Valuation: -
Adjusted Assessed Valuation: $33,207,035,723
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 % Applicable (1) Debt 6/30/25 San Mateo Community College District $655,171,697 10.167% $66,611,306 Jefferson Union High School District 379,274,440 3.936 14,928,242 South San Francisco Unified School District 283,311,507 92.073 260,853,404 Brisbane School District 27,721,439 20.171 5,591,691
City of South San Francisco Community Facilities District No. 2021-1 48,235,000 100.000 48,235,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $396,219,643
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Mateo County General Fund Obligations $530,970,772 10.167% $53,983,798 San Mateo County Board of Education Certificates of Participation 5,330,000 10.167 541,901 San Mateo County Flood Control and Sea LRR District General Fund Obligations 12,200,000 64.576 7,878,272 South San Francisco Unified School District General Fund Obligations 2,340,000 92.073 2,154,508 Jefferson Union High School District Certificates of Participation 46,845,000 3.936 1,843,819 City of South San Francisco Lease Revenue Bonds 208,969,851 100.000 208,969,851 City of South San Francisco Loans Payable 1,166,152 100.000 1,166,152 City of South San Francisco Lease Financing - - -
San Mateo County Mosquito and Vector Control District General Fund Obligations 3,185,295 10.167 323,849 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT: $276,862,150 TOTAL DIRECT DEBT $210,136,003
Total Overlapping Debt $462,945,790
COMBINED TOTAL DEBT $673,081,793 (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 assessed Ratios to Adjusted Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.19%
Total Direct Debt 0.63%
Combined Total Debt 2.03%
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 lease financing obligations. 167
ASSESSED VALUATION: $33,207,035,723
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $1,245,263,840 LESS AMOUNT OF DEBT SUBJECT TO LIMIT: -
LEGAL BONDED DEBT MARGIN $1,245,263,840
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
2016 $ 580,561,386 $ - $ 580,561,386 0.00%
2017 617,102,145 - 617,102,145 0.00%
2018 647,787,001 - 647,787,001 0.00%
2019 719,492,940 - 719,492,940 0.00%
2020 784,957,532 - 784,957,532 0.00%
2021 870,065,495 - 870,065,495 0.00%
2022 924,439,440 - 924,439,440 0.00%
2023 1,039,891,525 1,039,891,525 - 0.00%
2024 1,158,457,210 1,158,457,210 - 0.00%
2025 1,245,263,840 1,245,263,840 - 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, 2025
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. 168

CITY OF SOUTH SAN FRANCISCO

REVENUE BOND COVERAGE

SEWER RENTAL ENTERPRISE FUND

LAST TEN FISCAL YEARS
Net Revenue Debt Service Requirements (3)
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage 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 2023 30,343,556 22,399,721 7,943,835 360,000 90,000 450,000 17.65 2024 35,696,888 24,880,509 10,816,379 375,000 71,625 446,625 24.22 2025 35,596,995 25,390,071 10,206,924 395,000 52,375 447,375 22.82 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) 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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Revenue (1)
Expenses (2)
169

CITY OF SOUTH SAN FRANCISCO

SEWER DEBT SERVICE COVERAGE

SEWER RENTAL ENTERPRISE FUND

LAST TEN FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Service Charges $19,515,093 $19,750,636 $22,188,154 $23,556,871 $24,150,139 $24,526,952 $22,567,226 $23,180,130 $25,844,338 $25,759,473 Connection and Other Fees 104,283 147,134 229,002 521,205 146,672 178,092 210,980 710,915 143,589 130,553 Interest Income 238,389 23,552 31,061 488,437 623,256 41,888 (652,348) 215,397 1,049,306 1,822,105 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 6,237,114 8,659,655 7,884,864 Total Revenues $25,610,530 $25,684,966 $28,282,672 $30,393,993 $31,807,110 $33,885,393 $27,789,553 $30,343,556 $35,696,888 $35,596,995 Operating Expenses (2) $18,759,650 $13,514,718 $19,073,943 $20,398,147 $21,064,167 $21,401,330 $21,049,553 $22,399,717 $24,880,510 $25,390,071 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 $7,943,839 $10,816,378 $10,206,924 Parity Debt Service (3)
State Water Resources Control Board Loans $5,255,910 $5,255,910 $5,255,910 $5,255,910 $5,255,910 $5,255,910 $5,255,910 $5,255,910 $5,053,395 $5,053,395 CSCDA Series 2005D Revenue Bonds 450,566 449,976 453,616 451,616 449,019 450,593 451,331 450,000 446,625 447,375 Total Parity Debt $5,706,476 $5,705,886 $5,709,526 $5,707,526 $5,704,929 $5,706,502 $5,707,241 $5,705,910 $5,500,020 $5,500,770 Total Parity Debt Service Coverage 1.20 2.13 1.61 1.75 1.88 2.19 1.18 1.39 1.97 1.86 10,012,867 10,012,867 10,012,867 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. 170

CITY OF SOUTH SAN FRANCISCO

REDEVELOPMENT PLEDGED REVENUE COVERAGE

LAST TEN 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 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
2023 2023
2024 2024
2025 2025
Bond was paid off in fiscal year 2017
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
2016 $ 1,680,000 2,834,619$ $ 4,514,619
2017 1,745,000 2,761,756 4,506,756
2018 - - -
2019 - - -
2020 - - -
2021 - - -
2022 - - -
2023 - - -
2024 - - -
2025 - - -
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)
171
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 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%
2022 64,323 3,391,203 52,721 2.6% 729,181 8.82%
2023 64,601 3,806,610 58,924 3.1% 726,353 8.89%
2024 65,397 3,961,522 60,576 3.5% 742,893 8.80%
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
$4,000,000
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%
City Unemployment Rate

8.20%

8.30%

8.40%

8.50%

8.60%

8.70%

8.80%

8.90%

9.00%
City Population % of County
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
City Per Capita Personal Income
172
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Genentech Inc. 8,637 1 13.2% 8,446 1 13.1%
Stripe, Inc 1,088 2 1.7%
Costco* 834 3 1.3% 616 5 1.0%
Life Technologies Corporation 622 4 1.0% 622 4 1.0%
ABBVIE * 519 5 0.8%
Amazon.com Services* 461 6 0.7%
Goodwill Industries of San Francisco* 384 7 0.6%
Archstone South San Francisco 360 8 0.6%
ADCO Drywall & Metal Framing Inc 340 9 0.5%
MRL San Francisco, LLC 317 10 0.5%
Layton Construction Co Inc 779 2 1.2%
Onyx Pharmaceuticals Inc 650 3 1.0%
AMGEN San Francisco LLC 406 6 0.6%
Successfactors, Inc 400 7 0.6%
SBM Site Services LLC 388 8 0.6%
Wave Division Holdings LLC 344 9 0.5%
Tobi.com, LLC 328 10 0.5%
Subtotal 13,562 20.7% 12,979 20.1%
Total City Population 65,397 64,585

* Multiple locations combined
Data Sources:
(1) SSF Business License Database- Business licenses expiring 12/31/25. (2) City of South San Francisco CAFR 2015-16
(3) Population: HDL/California State Dept of Finance 2024. 2024-25 2015-16

CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
173
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Government (1) 47.10 47.10 43.60 41.60 46.60 46.60 51.30 59.38 59.38 57.38 Fire Department (2) 92.68 92.68 92.68 91.93 91.68 91.68 93.49 93.49 93.70 93.70 Police Department 120.87 120.87 120.87 122.87 121.87 120.92 122.09 122.44 122.94 122.08 Park, Rec. & Maintenance Services 134.16 137.19 144.29 144.79 151.75 143.84 150.44 179.26 187.41 186.21 Library 38.71 39.26 40.49 41.49 41.49 38.56 38.15 44.06 46.06 47.51 Economic and Comm. Development 27.15 29.40 30.40 30.40 31.40 29.00 31.40 32.40 32.40 33.00 Public Works (2) 49.00 49.00 49.00 53.00 52.00 47.00 52.85 59.37 58.37 58.87 Water Quality Control Plant 41.74 41.50 41.50 41.50 41.50 41.50 41.50 41.50 43.00 43.00 Total 551.41 557.00 562.83 567.58 578.29 559.10 581.22 631.90 643.26 641.75 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 FY2016-2025 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
700.00
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government (1) Fire Department (2) Police Department Park, Rec. & Maintenance Services Library Economic and Comm. Development Public Works (2) Water Quality Control Plant
174
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
Public safety:

Fire:

Inspections conducted 2,563 3,426 2,292 2,511 2,375 3,888 3,060 2,421 2,062 3,734 Police:

Police calls for service 32,477 33,313 34,811 38,299 38,541 40,503 60,333 59,580 55,248 50,619 Law violations:

Group A offenses (Part I crimes prior) 2,126 2,103 2,276 2,007 2,070 3,481 1,955 1,892 2,734 (7) 1,837 Physical arrests (adult and juvenile) 2,071 1,870 1,891 1,943 1,871 1,635 2,025 1,780 1,418 1,537 Traffic violations 4,211 3,785 3,359 3,620 4,172 2,119 1,985 1,799 1,742 1,265 Parking violations 12,006 15,291 18,339 26,228 12,269 13,276 17,667 16,995 11,859 17,305 Public works
Street resurfacing (miles) (Eng Div) 2 8 3.3 7.0 7.9 19.57 9.60 6.55 18.00 (6) 0.28 Potholes repaired (square miles
prior)/(square feet) 20 (2) 3221 410 190 165 264 267 450 1,720 Asphalt used for street repairs (tons) 151 94 148 13 46 69 68 44.5 51.1 110.5 Culture and recreation:

Recreation class participants* 23,399 23,939 25,688 23,394 17,333 (4) 5,282 8,631 10,021 11,489 14,077 Library:

Total items borrowed 565,806 558,106 544,059 582,497 (3) 450,637 (3) 245,869 456,652 439,846 (5) 448,054 588,424 Items in collection (1) 208,400 (1) 209,895 (1) 219,114 (1) 228,224 (1 ) 247,393 (1) 260,205 (1) 229,891 (1) 283,792 (1) 207,610 (1) 214,255 Wastewater
Residential connections 16,491 16,488 12,556 12,559 12,549 12,571 12,672 12,673 12,674 12,680 Commercial connections 1,561 1,562 1,575 1,576 1,582 1,575 1,523 1,508 1,493 1,444 Other connections 131 140 140 140 140 140 140 140 140 140 Average daily sewage treatment
(millions of gallons) 7.92 8.41 8.62 8.62 7.12 6.76 7.35 7.45 8.86 9.54 Note: N/A denotes information not available.
* Registration counts excludes all withdrawals from the classes for the year. (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) Main Library closed for 4 months to move to the new facility (6) Minimal resurfacing work occurred in FY 2024–25, as the '24 surface seal project was combined with the '25 project, which began 07/15/25, and will be reported in the FY 2025–26 ACFR. (7) The method the FBI and DOJ use to collect data on crimes has changed, Part I crimes are now referred to as Group A offenses

CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Ten Fiscal Years
175
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
Public safety:

Fire stations 5555555555
Police stations 1111111111
Police Fleet 53 52 59 63 60 63 60 63 63 63
Public works
Miles of streets 127 127 127 127 127 127 127 139.6 139.6 139.6 Street lights 4,505 4,505 4,531 4,531 4,531 4,581 4,581 4,581 4,668 4,668 Parking District lights (3) 20 16 16 16 16 16 16 16 16 16 Traffic Signals 76 76 76 76 76 80 80 80 83 85
Culture and recreation:

Community services:

City parks 28 28 28 28 28 28 28 30 30 30
City parks acreage 190 190 190 210 210 210 210 225 225 225 Playgrounds (4) 24 24 24 24 34 34 34 35 35 35
City trails 6666666666
Community gardens 1111111111
Community centers 4444444444
Senior centers (2) 1111111111
Skate Park 1111111111
Dog park 1111111112
Swimming pools 1111111111
Tennis courts 7777777777
Basketball Courts 12 12 12 12 12 12 12 12 12 12
Baseball/softball diamonds 111111111111111313 13
Soccer/football fields 5555555444
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 2017- Lot 6 sold for Rotary Plaza development. (4) Year 2020 -Playgrounds in the Common Greens areas are now included.

Last Ten Fiscal Years
Capital Asset Statistics by Function/Program

CITY OF SOUTH SAN FRANCISCO
176
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
TOT Collected $12,054,093 $12,256,007 $12,580,680 $15,535,213 $12,591,459 $6,215,172 $11,268,807 $15,188,739 $13,856,669 $15,065,696 1% Measure I Special Tax 1,339,344 1,361,779 1,397,853 1,556,009 1,114,911 495,099 866,831 1,168,365 1,065,898 1,158,900 Total TOT Collection 13,393,436 $ $ 13,617,786 $ 13,978,533 $ 17,091,222 $ 13,706,371 $ 6,710,270 $ 12,135,639 $ 16,357,104 $ 14,922,567 $ 16,224,596 Police $ 267,869 $ 272,356 $ 279,571 $ 311,202 $ 222,982 $ 99,020 $ 173,366 $ 233,673 $ 213,180 $ 231,780 Fire 267,869 272,356 279,571 311,202 222,982 99,020 173,366 233,673 213,180 231,780 Library 267,869 272,356 279,571 311,202 222,982 99,020 173,366 233,673 213,180 231,780 Parks 267,869 272,356 279,571 311,202 222,982 99,020 173,366 233,673 213,180 231,780 Recreation 267,869 272,356 279,571 311,202 222,982 99,020 173,366 233,673 213,180 231,780 $ 1,339,344 $ 1,361,779 $ 1,397,853 $ 1,556,009 $ 1,114,911 $ 495,099 $ 866,831 $ 1,168,365 $ 1,065,898 $ 1,158,900

CITY OF SOUTH SAN FRANCISCO
Miscellaneous Information
Last Ten Fiscal Years
Collection and Use of 1% Special Transient Occupancy Tax (TOT) Approved by Voters as Measure I * * 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 I- effective 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 acquisition, 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).

Transient Occupancy Tax
Detail
1% Measure I Special Tax
Use
Total 1% Measure I Special
Tax
177
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South San Francisco City CouncilApril 8, 2026

South San Francisco City Council
April 8, 2026