The following table provides required supplementary information regarding the City's Safety Pension Plan:
2015 2016 2017 2018 2019 2020 2021
$ $ $ $ $ $$
Actuarially determined contribution 2,648,853 2,921,288 3,364,471 3,606,866 3,940,104 4,649,154 5,129,097 Contributions in relation to the actuarially
determined contributions (2,648,853) (2,921,288) (3,364,471) (3,606,866) (4,006,904) (4,699,442) (5,129,097) Contribution deficiency (excess) - - - - (66,800) (50,288) - Covered payroll 9,190,095 9,792,080 11,557,360 11,496,504 11,783,799 12,765,651 11,313,017 Contributions as a percentage of covered payroll 28.82% 29.83% 29.11% 31.37% 34.00% 36.81% 45.34% Notes to Schedule
Valuation date: 6/30/19
Methods and assumptions used to determine contribution rates:
Discount Rate 7.15% @ 6/30/2019
7.15% @ 6/30/2018
7.15% @ 6/30/2017
7.65% @ 6/30/2016
7.65% @ 6/30/2015
7.50% @ 6/30/2014
Inflation
Salary increases Varies by Entry Age and Service
Investment rate of return
Mortality Rate Table (1)
Post Retirement Benefit Increase
* Fiscal year 2015 was the 1st year of implementation. Years will be added until 10 years of data is reached.
Contract COLA up to 2.50% until Purchasing Power
Protection Allowance Floor on Purchasing Power
applies, 2.50% thereafter.
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for
2020, and 7.00% for 2021, net of pension plan
investment expenses, including inflation.
Derived using CalPERS' Membership Data for all Funds
(1) 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 BB published by the Society of Actuaries for 2015 10 2018. For 2019 to 2021, 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.
2.75% for 2015 to 2019, 2.625 for 2020, and 2.50% for
2021
CITY OF WATSONVILLE, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
LAST SEVEN FISCAL YEARS*
JUNE 30, 2021
96 Attachment B
City of Watsonville, California
Nonmajor Governmental Funds
Special Revenue Funds
Gas Tax
The City of Watsonville receives various revenues from taxes imposed on the sale of gasoline.
These funds are to be used for maintaining and improving Watsonville's roads and transportation system.
Narcotics Assets Seizure
Federal and State law authorize the seizure of assets used in the sale of illegal drugs. The proceeds from these seizures are to be used to further Police enforcement. These monies are accounted for in this fund.
Business Development
This fund collects a business license surcharge and downtown property tax assessment which is then remitted to the Chamber of Commerce and Economic Development for their respective purposes.
Economic Development
Funds held for economic development. The fund receives interest income and loan payoffs that are used to support economic development.
Library
The Library Fund receives sales tax, grants, donations and state subventions for the advancement of the Library in Watsonville. This fund receives such revenues and records their expenditures.
Parks Development
This fund's revenues are grants, park development impact fees and 1972 Landscape and Lighting Assessment fees. These funds are used to acquire, improve and maintain the government’s parks.
Retirement Tax
The City of Watsonville participates in the California Public Employees Retirement System.
The government's contribution for General Fund employees is funded by a voter approved property tax override. The tax is collected in this fund and then used to pay for appropriate retirement expenses.
(Continued)
97 Attachment B
City of Watsonville, California
Nonmajor Governmental Funds
Special Revenue Funds
Parking Garage
This fund is used to record operating costs used to maintain the government’s parking garage downtown.
Measure G /Y
This fund was established in 2014, the Citizens of Watsonville approved an additional sales tax of .5% for seven years to increase funding for public safety.
Abandoned Vehicle
The government has assigned a Watsonville Police Department Service Specialist to aggressively enforce all State laws and City of Watsonville Ordinances pertaining to the abatement of all abandoned, wrecked, dismantled, inoperative vehicles or parts from any and all private or public properties. This fund collects State and County funds used to pay for these services.
Inclusionary Housing
The government levies an impact fee on all market rate housing development, which either requires a specified number of below market housing units be created or the payment of a fee.
This fund collects those fees and uses them to create low-income housing.
SB 1 Gas Tax
This fund was established in 2017, which increased the gas tax by $0.12 per gallon, increased the diesel fuel tax by $0.20 per gallon, increased the sales tax on diesel fuels by an additional 4 percentage points, created an annual transportation improvement fee, and created an annual zeroemission vehicles fee.
Measure D
This fund was established in 2017, Measure D is a comprehensive and inclusive package of transportation improvements passed in November 2016 by over 2/3 of Santa Cruz County voters.
This ½-cent sales tax guarantees every city and the county a steady, direct source of local funding for local streets and road maintenance, bicycle and pedestrian projects (especially near schools), safety projects, and transit and paratransit service, as well as numerous essential transportation projects and programs throughout the county. (Concluded)
98 Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
NARCOTICS
GAS ASSETS BUSINESS ECONOMIC PARKS RETIREMENT
TAX SEIZURE DEVELOPMENT DEVELOPMENT LIBRARY DEVELOPMENT TAX $$ $ $ $ $ $
ASSETS:
Cash and investments 807,964 223,692 147,400 26,017 835,095 2,114,063 212,626 Receivables:
Interest - - - 42,970 - - -
Taxes - - - - - - 158,091
Accounts 3,903 - 2,657 - 354,818 9,917 -
Intergovernmental 313,216 - - - - - -
Advances receivable - - - - 23,373 34,745 -
Loans receivable - - - 53,770 - - -
Total Assets 1,125,083 223,692 150,057 122,757 1,213,286 2,158,725 370,717 LIABILITIES:
Accounts payable 70,996 - - - - 447 -
Accrued personnel costs 17,773 - - - - 3,186 -
Retentions payable 1,299 - - - - - -
Unearned revenue - - - - - - -
Deposits payable - - - - - - -
Due to other funds - - - - - - -
Total Liabilities 90,068 - - - - 3,633 -
Deferred Inflows of Resources
Unavailable revenue 313,216 - 568 96,740 - - -
Total Deferred Inflows of Resources 313,216 - 568 96,740 - - - Fund Balances:
Nonspendable - - - - 23,373 34,745 -
Restricted for:
Assets seizure - 223,692 - - - - -
Business development - - 149,489 - - - -
Economic development - - - 26,017 - - -
Library - - - - 1,189,913 - -
Parks development - - - - - 2,120,347 -
Retirement tax - - - - - - 370,717
Measure G/Y - - - - - - -
Inclusionary housing - - - - - - -
SB1 gas tax 721,799 - - - - - -
Measure D - - - - - - -
Unassigned - - - - - - -
Total Fund Balances 721,799 223,692 149,489 26,017 1,213,286 2,155,092 370,717 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 1,125,083 223,692 150,057 122,757 1,213,286 2,158,725 370,717 Continued
Special Revenue Funds
99 Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
PARKING ABANDONED INCLUSIONARY SB 1
GARAGE MEASURE G/Y VEHICLE HOUSING GAS TAX MEASURE D TOTAL $$$ $ $ $
ASSETS:
Cash and investments 541 3,093,802 19,204 540,506 1,697,637 2,469,383 12,187,930 Receivables:
Interest - - - 105,578 - - 148,548
Taxes 892,514 - - - 93,095 197,862 1,341,562
Accounts 10,573 - - - - - 381,868
Intergovernmental - - - - - - 313,216
Advances receivable - - - 23,429 - - 81,547
Loans receivable - - 1,484,537 - - - 1,538,307
Total Assets 11,114 3,986,316 19,204 2,154,050 1,790,732 2,667,245 15,992,978 LIABILITIES:
Accounts payable 6,019 123,918 - 9,604 80,455 - 291,439 Accrued personnel costs - 137,300 - 20,150 - 179,121 712 Retentions payable - - - - - - 1,299
Unearned revenue - - - - - - -
Deposits payable - - - - - - -
Due to other funds 409,809 - - - - - 409,809
Total Liabilities 415,828 261,218 - 29,754 81,167 - 881,668 Deferred Inflows of Resources
Unavailable revenue - - 1,590,115 - - - 2,000,639
Total Deferred Inflows of Resources - - 1,590,115 - - - 2,000,639 Fund Balances:
Nonspendable - - - 23,429 - - 81,547
Restricted for:
Assets seizure - - - - - 223,692 -
Business development - - - - - 149,489 -
Economic development - - - - - 26,017 -
Library - - - - - 1,189,913 -
Parks development - - - - - 2,120,347 -
Retirement tax - - - - - 370,717 -
Measure G/Y - 3,725,098 - - - - 3,725,098
Abandoned vehicle - - 19,204 - - 19,204 -
Inclusionary housing - - - 510,752 - 510,752 -
SB1 gas tax - - - - 1,790,732 - 2,512,531
Measure D - - - - - 2,586,078 2,586,078
Unassigned (404,714) - - - - - (404,714)
Total Fund Balances (404,714) 3,725,098 19,204 534,181 1,790,732 2,586,078 13,110,671 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 11,114 3,986,316 19,204 2,154,050 1,790,732 2,667,245 15,992,978 Concluded
Special Revenue Funds
100
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NARCOTICS
GAS ASSETS BUSINESS ECONOMIC PARKS RETIREMENT
TAX SEIZURE DEVELOPMENT DEVELOPMENT LIBRARY DEVELOPMENT TAX $$ $ $ $ $ $
REVENUES:
Taxes - - - - 3,624,785 - 3,598,653
Licenses, permits and fees - - 92,848 - 2,484 205,416 - Intergovernmental 1,157,022 - - - 58,220 - -
Charges for services - - - - - - -
Interest 521 168 117 - 571 1,450 -
Miscellaneous 14,856 4,747 - 2,391 51,450 52,973 -
Total revenues 1,172,399 4,915 92,965 2,391 3,737,510 259,839 3,598,653 EXPENDITURES:
Current:
General government - - 15,000 98 - - 3,023
Public safety - 29,551 - - - - -
Housing - - - - - - -
Streets 987,814 - - - - - -
Culture and recreation - - - - 3,450,495 138,550 -
Total expenditures 987,814 29,551 15,000 98 3,450,495 138,550 3,023 Excess (deficiency) of revenues over
(under) expenditures 184,585 (24,636) 77,965 2,293 287,015 121,289 3,595,630 OTHER FINANCING SOURCES (USES):
Transfers in - - - - - - -
Transfers (out) - - (24,900) - (100,141) - (3,561,139)
Total other financing sources (uses) - - (24,900) - (100,141) - (3,561,139) Net change in fund balances 184,585 (24,636) 53,065 2,293 186,874 121,289 34,491 Fund balances, July 1 (as restated) 537,214 248,328 96,424 23,724 1,026,412 2,033,803 336,226 Fund balances, June 30 721,799 223,692 149,489 26,017 1,213,286 2,155,092 370,717 Continued
Special Revenue Funds
101
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 2021
PARKING ABANDONED INCLUSIONARY SB 1
GARAGE MEASURE G/Y VEHICLE HOUSING GAS TAX MEASURE D TOTAL $ $ $ $ $$$
REVENUES:
Taxes - 4,688,780 - - 874,077 1,100,350 13,886,645
Licenses, permits and fees 113,283 25,708 45,712 49,520 - - 534,971 Intergovernmental - - - - - 75,289 1,290,531
Charges for services - - - 42,083 - - 42,083
Interest - 2,038 - 643 973 1,455 7,936
Miscellaneous 4 - - 1,500 - - 127,921
Total revenues 113,287 4,716,526 45,712 93,746 875,050 1,177,094 15,890,087 EXPENDITURES:
Current:
General government 173,785 - - - - - 191,906
Public safety - 3,517,451 60,000 - - - 3,607,002
Housing - - - 1,223,614 - - 1,223,614
Streets - - - - 260,648 684,222 1,932,684
Culture and recreation - - - - - - 3,589,045
Total expenditures 173,785 3,517,451 60,000 1,223,614 260,648 684,222 10,544,251 Excess (deficiency) of revenues over
(under) expenditures (60,498) 1,199,075 (14,288) (1,129,868) 614,402 492,872 5,345,836 OTHER FINANCING SOURCES (USES):
Transfers in 93,195 - - - - - 93,195
Transfers (out) (7,330) (286,307) - - - - (3,979,817)
Total other financing sources (uses) 85,865 (286,307) - - - - (3,886,622) Net changes in fund balances 25,367 912,768 (14,288) (1,129,868) 614,402 492,872 1,459,214 Fund balances, July 1 (as restated) (430,081) 2,812,330 33,492 1,664,049 1,176,330 2,093,206 11,651,457 Fund balances, June 30 (404,714) 3,725,098 19,204 534,181 1,790,732 2,586,078 13,110,671 Concluded
Special Revenue Funds
102
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Variance With Variance With
Final Budget - Final Budget -
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ $ $ $ $ $$ $
REVENUES:
Taxes - - - - - - - -
Intergovernmental 943,236 943,236 1,157,022 213,786 - - - - Interest 4,200 4,200 521 (3,679) 1,500 1,500 168 (1,332) Miscellaneous - - 14,856 14,856 10,000 10,000 4,747 (5,253) Total revenues 947,436 947,436 1,172,399 224,963 11,500 11,500 4,915 (6,585) EXPENDITURES:
Public safety - - - - 110,000 110,000 29,551 80,449
Streets 1,194,713 1,194,713 987,814 206,899 - - - -
Total expenditures 1,194,713 1,194,713 987,814 206,899 110,000 110,000 29,551 80,449 Net changes in fund balances (247,277) (247,277) 184,585 (18,064) (98,500) (98,500) (24,636) 73,864 Fund balances, July 1 (as restated) 537,214 537,214 537,214 - 248,328 248,328 248,328 - Fund balances, June 30 289,937 289,937 721,799 (18,064) 149,828 149,828 223,692 73,864 Budgeted Amounts
GAS TAX NARCOTICS ASSETS SEIZURE
Budgeted Amounts
103
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Variance With Variance With
Final Budget - Final Budget -
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ $$ $ $ $ $ $
REVENUES:
Licenses, permits and fees 85,000 85,000 92,848 7,848 - - - - Interest 1,425 1,425 117 (1,308) - - - -
Miscellaneous 6,000 6,000 - (6,000) - 2,391 - 2,391
Total revenues 92,425 92,425 92,965 540 - 2,391 - 2,391 EXPENDITURES:
Current:
General government 73,000 73,000 15,000 58,000 - 98 - (98) Total expenditures 73,000 73,000 15,000 58,000 - 98 - (98) Excess (deficiency) of revenues over
(under) expenditures 19,425 19,425 77,965 58,540 - 2,293 - 2,489 OTHER FINANCING SOURCES (USES):
Transfers (out) (24,900) (24,900) (24,900) - - - - -
Total other financing sources (uses) (24,900) (24,900) (24,900) - - - - - Net changes in fund balances (5,475) (5,475) 53,065 58,540 - 2,293 - 2,489 Fund balances, July 1 96,424 96,424 96,424 - - 23,724 - 23,724 Fund balances, June 30 90,949 149,489 90,949 58,540 - 26,017 - 26,213 Budgeted Amounts
BUSINESS DEVELOPMENT ECONOMIC DEVELOPMENT
Budgeted Amounts
104
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Variance With Variance With
Final Budget - Final Budget -
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $$ $ $ $$$ $
REVENUES:
Taxes 2,578,696 2,578,696 3,624,785 1,046,089 - - - -
Licenses, permits and fees 34,000 34,000 2,484 (31,516) 191,985 191,985 205,416 13,431 Intergovernmental 43,000 43,000 58,220 15,220 - - - -
Interest 20,000 20,000 571 (19,429) 5,500 5,500 1,450 (4,050) Miscellaneous 10,000 10,000 51,450 41,450 - 52,973 - 52,973 Total revenues 2,685,696 2,685,696 3,737,510 1,051,814 197,485 197,485 259,839 62,354 EXPENDITURES:
Current:
Culture and recreation 3,208,587 3,208,587 3,450,495 (241,908) 452,868 452,868 138,550 314,318 Total expenditures 3,208,587 3,208,587 3,450,495 (241,908) 452,868 452,868 138,550 314,318 Excess (deficiency) of revenues over
(under) expenditures (522,891) (522,891) 287,015 809,906 (255,383) (255,383) 121,289 376,672 OTHER FINANCING SOURCES (USES):
Transfers (out) (100,141) (100,141) (100,141) - - - - - Total other financing sources (uses) (100,141) (100,141) (100,141) - - - - - Net change in fund balances (623,032) (623,032) 186,874 809,906 (255,383) (255,383) 121,289 376,672 Fund balances, July 1 1,026,412 1,026,412 1,026,412 - 2,033,803 2,033,803 2,033,803 - Fund balances, June 30 403,380 403,380 1,213,286 809,906 1,778,420 1,778,420 2,155,092 376,672
LIBRARY PARKS DEVELOPMENT
Budgeted Amounts Budgeted Amounts
105
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Variance With Variance With
Final Budget - Final Budget -
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $$$ $ $ $ $ $
REVENUES:
Taxes 3,561,139 3,561,139 3,598,653 37,514 - - - -
Licenses, permits, and fees - - - - 162,000 162,000 113,283 (48,717) Miscellaneous - - - - - - 4 4
Total revenues 3,561,139 3,561,139 3,598,653 37,514 162,000 162,000 113,287 (48,713) EXPENDITURES:
Current:
General government - - 3,023 (3,023) 160,697 160,697 173,785 (13,088) Total expenditures - - 3,023 (3,023) 160,697 160,697 173,785 (13,088) Excess (deficiency) of revenues over
(under) expenditures 3,561,139 3,561,139 3,595,630 34,491 1,303 1,303 (60,498) (61,801) OTHER FINANCING SOURCES (USES):
Transfers in - - - - 93,195 93,195 93,195 -
Transfers (out) (3,561,139) (3,561,139) (3,561,139) - (3,886) (3,886) (7,330) (3,444) Total other financing sources (uses) (3,561,139) (3,561,139) (3,561,139) - 89,309 89,309 85,865 (3,444) Net change in fund balances - - 34,491 34,491 90,612 90,612 25,367 (65,245) Fund balances, July 1 336,226 336,226 336,226 - (430,081) (430,081) (430,081) - Fund balances, June 30 336,226 336,226 370,717 34,491 (339,469) (339,469) (404,714) (65,245)
RETIREMENT TAX
Budgeted Amounts
PARKING GARAGE
Budgeted Amounts
106
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Variance With Variance With
Final Budget - Final Budget -
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ $ $ $ $$ $ $
REVENUES:
Taxes 4,023,000 4,023,000 4,688,780 665,780 - - - -
Licenses, permits and fees 600 600 25,708 25,108 60,000 60,000 45,712 (14,288) Interest 10,000 10,000 2,038 (7,962) - - - -
Total revenues 4,033,600 4,033,600 4,716,526 682,926 60,000 60,000 45,712 (14,288) EXPENDITURES:
Current:
Public safety 3,687,678 3,687,678 3,517,451 170,227 60,000 60,000 60,000 - Total expenditures 3,687,678 3,687,678 3,517,451 170,227 60,000 60,000 60,000 - Excess (deficiency) of revenues over
(under) expenditures 345,922 345,922 1,199,075 853,153 - (14,288) - (14,288) OTHER FINANCING SOURCES (USES):
Transfers (out) (286,307) (286,307) (286,307) - - - - - Total other financing sources (uses) (286,307) (286,307) (286,307) - - - - - Net change in fund balances 59,615 59,615 912,768 853,153 - (14,288) - (14,288) Fund balances, July 1 2,812,330 2,812,330 2,812,330 - 33,492 33,492 33,492 - Fund balances, June 30 2,871,945 2,871,945 3,725,098 853,153 33,492 33,492 19,204 (14,288) Budgeted Amounts Budgeted Amounts
MEASURES G/Y ABANDONED VEHICLE
107
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Variance With Variance With
Final Budget - Final Budget -
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ $ $ $ $$ $ $
REVENUES:
Taxes - - - - 575,000 575,000 874,077 299,077
Licenses, permits and fees 22,000 22,000 49,520 27,520 - - - - Charges for services 60,000 60,000 42,083 (17,917) - - - - Interest 10,000 10,000 643 (9,357) 2,160 2,160 973 (1,187) Miscellaneous 5,000 5,000 1,500 (3,500) - - - -
Total revenues 97,000 97,000 93,746 (3,254) 577,160 577,160 875,050 297,890 EXPENDITURES:
Current:
Housing 1,741,604 1,741,604 1,223,614 517,990 - - - -
Streets - - - - 2,032,088 2,032,088 260,648 1,771,440
Total expenditures 1,741,604 1,741,604 1,223,614 517,990 2,032,088 2,032,088 260,648 1,771,440 Excess (deficiency) of revenues over
(under) expenditures (1,644,604) (1,644,604) (1,129,868) 514,736 (1,454,928) (1,454,928) 614,402 (1,473,550) OTHER FINANCING SOURCES (USES):
Transfers (out) (50,000) (50,000) - 50,000 - - - -
Total other financing sources (uses) (50,000) (50,000) - 50,000 - - - - Net changes in fund balances (1,694,604) (1,694,604) (1,129,868) 564,736 (1,454,928) (1,454,928) 614,402 (1,473,550) Fund balances, July 1 1,664,049 1,664,049 1,664,049 - 1,176,330 1,176,330 1,176,330 - Fund balances, June 30 (30,555) (30,555) 534,181 564,736 (278,598) (278,598) 1,790,732 (1,473,550) Budgeted Amounts
INCLUSIONARY HOUSING SB 1 - GAS TAX
Budgeted Amounts
108
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
NONMAJOR SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
$$$ $
REVENUES:
Taxes 621,600 621,600 1,100,350 478,750
Intergovernmental 1,550,000 1,550,000 75,289 (1,474,711) Interest 5,000 5,000 1,455 (3,545)
Total revenues 2,176,600 2,176,600 1,177,094 (999,506)
EXPENDITURES:
Current:
Streets 2,819,898 2,819,898 684,222 2,135,676
Total expenditures 2,819,898 2,819,898 684,222 2,135,676 Excess (deficiency) of revenues over
(under) expenditures (643,298) (643,298) 492,872 1,136,170 Net change in fund balance (643,298) (643,298) 492,872 1,136,170 Fund balance, July 1 2,093,206 2,093,206 2,093,206 -
Fund balance, June 30 1,449,908 1,449,908 2,586,078 1,136,170
MEASURE D
Budgeted Amounts
109
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
$$ $ $
REVENUES:
Intergovernmental 52,581 52,581 55,670 3,089
Total revenues 52,581 52,581 55,670 3,089
EXPENDITURES:
Debt service:
Principal 729,521 729,521 741,194 (11,673)
Interest and fiscal charges 134,150 134,150 147,166 (13,016) Total expenditures 863,671 863,671 888,360 (24,689)
Excess (deficiency) of revenues over
(under) expenditures (811,090) (811,090) (832,690) (21,600) OTHER FINANCING SOURCES (USES):
Transfers in 811,090 811,090 840,955 29,865
Total other financing sources (uses) 811,090 811,090 840,955 29,865 Net change in fund balance - - 8,265 8,265
Fund balance, July 1 238,493 238,493 238,493 -
Fund balance, June 30 238,493 238,493 246,758 8,265
Budgeted Amounts
110
Attachment B
STATISTICAL SECTION
This part of the City of Watsonville’s comprehensive annual financial report presents detailed information as a context for the understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.
Contents Page
Financial Trends 113
These schedules contain trend information to help the reader understand how the city’s financial performance and well-being have changed over time.
Revenue Capacity 118
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.
Debt Capacity 123
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.
Demographic and Economic Information 126
These schedules offer the demographic and economic indicators to help the reader understand the environment within which the city’s financial activities take place.
Operating Information 129
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.
SOURCE: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
111
Attachment B
This Page Left Intentionally Blank
Attachment B
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$ $ $ $ $ $ $ $ $ $
Governmental activities
Net investment in capital assets 128,634 121,354 118,302 114,148 110,806 111,256 108,892 110,033 109,660 108,607 Restricted 39,086 41,689 42,945 44,188 16,754 16,496 19,849 19,803 8,803 24,412 Unrestricted (7,011) (4,812) (2,634) (39,888) (7,184) (3,294) 475 (1,797) 6,712 (4,162) Total governmental activities net position 160,709 158,231 158,613 118,448 120,376 124,458 129,216 128,039 125,175 128,857 Business-type activities
Net investment in capital assets 99,867 100,375 99,277 98,484 94,655 96,034 95,782 92,296 97,119 93,904 Restricted - - - - - - - - - -
Unrestricted 8,671 6,562 10,865 (2,581) 2,587 5,524 9,085 20,058 19,821 27,642 Total business-type activities net position 108,538 106,937 110,142 95,903 97,242 101,558 104,867 112,354 116,940 121,546 Primary government
Net investment in capital assets 228,501 221,729 217,579 212,632 205,461 207,290 204,674 202,329 206,779 202,511 Restricted 39,086 41,689 42,945 44,188 16,754 16,496 19,849 19,803 22,228 24,412 Unrestricted 1,660 1,750 8,231 (42,469) (4,597) 2,230 9,560 18,261 13,109 23,480 Total primary government net position 269,247 265,168 268,755 214,351 217,618 226,016 234,083 240,393 242,116 250,403 Fiscal Year
CITY OF WATSONVILLE, CALIFORNIA
Net Position By Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
113
Attachment B
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$ $ $ $ $ $ $ $ $ $
Expenses:
Governmental activities:
General government 7,729 7,140 11,773 5,494 7,151 8,257 7,032 15,143 13,812 8,599 Public safety 18,888 21,249 23,020 25,716 27,751 27,382 30,972 31,221 35,811 35,608 Housing 3,091 1,543 820 1,298 1,389 2,318 1,158 2,289 2,059 24,412 Highways and streets 8,926 7,110 6,708 4,697 3,043 6,348 5,974 8,561 6,931 8,652 Culture and recreation 7,510 7,511 7,334 7,916 8,613 7,817 8,591 9,152 9,850 (4,162) Interest on long term debt 1,153 346 189 132 112 146 158 491 78 123 Total government activities 47,297 44,899 49,844 45,253 48,059 52,268 53,885 66,857 68,541 73,232 Business-type activities:
Water 11,213 11,249 11,001 11,583 15,537 13,851 12,038 13,996 19,378 15,960 Sewer 9,842 9,863 9,298 10,741 10,731 10,272 13,175 14,195 14,099 14,190 Solid Waste 8,583 8,557 8,699 10,136 9,181 10,976 12,758 11,925 12,567 19,189 Airport 2,539 3,347 2,888 2,580 2,225 2,684 3,382 5,118 3,803 4,235 Fiber Optic - - - - 8 41 46 68 59 69
Total business-type activities 32,177 33,016 31,886 35,040 37,682 37,824 41,399 45,302 49,906 53,643 Total primary government 79,474 77,915 81,730 80,293 85,741 90,092 95,284 112,159 118,447 126,875 Program Revenues:
Governmental activities:
Charges for services:
General government 3,095 3,489 9,249 5,488 5,524 8,426 8,285 12,233 8,649 9,181 Public safety 1,703 1,623 1,549 1,396 1,853 1,780 1,875 822 874 821 Housing 903 97 1,619 391 - 675 289 866 782 667
Highways and streets 16 1,579 2,501 1,585 1,858 2,284 2,663 1,057 799 64 Culture and recreation 1,165 739 827 1,330 833 952 1,189 1,244 832 606 Operating grants and contributions 6,906 4,926 2,657 2,393 3,590 3,310 2,772 2,501 5,988 5,100 Capital grants and contributions 962 - - - - - - - - -
Total governmental activates program revenues 14,750 12,453 18,402 12,583 13,658 17,427 17,073 18,723 17,924 16,439 Business-type activities:
Charges for services:
Water 10,119 9,964 12,363 12,075 12,756 14,617 15,243 17,358 20,484 19,885 Sewer 8,782 9,128 10,864 10,046 14,307 12,069 12,475 13,444 14,153 15,119 Solid Waste 8,712 8,952 9,580 10,471 10,746 11,225 12,549 13,493 14,587 18,310 Airport 2,229 2,254 1,844 1,956 2,159 1,937 2,576 5,595 3,713 2,432 Fiber Optic - - - - 23 44 43 45 74 609
Operating grants and contributions 990 784 603 901 759 1,373 1,430 2,016 796 732 Capital grants and contributions 172 994 1,156 590 659 1,104 311 94 163 107 Total business-type activities program revenues 31,004 32,076 36,410 36,039 41,409 42,369 44,627 52,045 53,970 57,194 Continued
Fiscal Year
CITY OF WATSONVILLE, CALIFORNIA
Changes In Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
114
Attachment B
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$ $ $ $ $ $ $ $ $ $
Net (expense) / revenue
Governmental activities (32,547) (32,448) (31,442) (32,670) (34,401) (34,840) (37,564) (48,134) (50,655) (46,217) Business-type activities (1,174) (939) 4,525 999 3,727 4,544 3,227 6,744 4,065 3,551 Total primary government net expense (33,721) (33,387) (26,917) (31,671) (30,674) (30,296) (34,337) (41,390) (46,590) 24,412 General Revenues and Other Changes -4162
in Net Position
Governmental activities:
Taxes
Property taxes 13,825 12,383 12,090 11,868 12,846 13,300 13,436 15,669 16,243 16,169 Sales taxes 9,774 9,276 11,436 13,988 16,693 16,083 18,393 19,369 19,075 22,232 Utility users taxes 2,934 3,068 3,029 3,437 3,183 3,679 4,019 4,011 4,265 3,994 Franchise taxes 365 417 365 404 456 471 436 460 458 563 Other taxes 708 1,069 1,120 1,295 1,457 1,792 2,060 3,125 2,906 2,610 Intergovernmental revenue not restricted 1,255 1,235 1,686 1,475 1,120 1,009 1,048 1,021 1,139 1,434 Transfers - 171 211 226 232 308 270 272 251 246
Unrestricted investment earnings 2,190 2,173 1,890 1,916 2,098 2,218 2,660 3,030 3,416 2,531 Total governmental activities 31,051 29,792 31,827 34,609 38,085 38,860 42,322 46,957 47,753 49,779 Business-type activities:
Transfers - (171) (211) (226) (231) (308) (270) (272) (251) (246) Other Revenue - - - - - - - - - 1,274
Unrestricted investment earnings 724 291 263 269 201 206 352 1,014 811 70 Total business-type activities 724 120 52 43 -30 (102) 82 742 560 1,098 Total primary government 31,775 29,912 31,879 34,652 38,055 38,758 42,404 47,699 48,313 50,877 Change in net position before extraordinary item
Governmental activities (1,496) (2,656) 385 1,939 3,683 4,020 4,758 (1,177) (2,863) 3,605 Business-type activities (450) (819) 4,577 1,043 3,696 4,442 3,309 7,486 4,586 4,606 Total primary government (1,946) (3,475) 4,962 2,982 7,379 8,462 8,067 6,309 1,723 8,211 Extraordinary items
Governmental activities 21,010 - - - - - - - - -
Total primary government 21,010 - - - - - - - - -
Change in net position
Governmental activities 19,514 (2,656) 385 1,939 3,683 4,020 4,758 (1,177) (2,863) 3,605 Business-type activities (450) (819) 4,577 1,043 3,696 4,442 3,309 7,486 4,586 4,606 Total primary government 19,064 (3,475) 4,962 2,982 7,379 8,462 8,067 6,309 1,723 8,211 Concluded
CITY OF WATSONVILLE, CALIFORNIA
Fiscal Year
(amounts expressed in thousands)
(accrual basis of accounting)
Last Ten Fiscal Years
Changes In Net Position
115
Attachment B
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$ $ $ $ $ $ $ $ $ $
General fund
Nonspendable 44 65 56 35 3,365 2,965 2,588 123 114 18
Restricted - - - - - - - - - -
Unassigned 4,305 4,428 1,881 4,595 4,228 6,057 10,342 13,144 16,478 18,253 Total general fund 4,349 4,493 1,937 4,630 7,593 9,022 12,930 13,267 16,592 18,271 All other governmental funds
Restricted, reported in
Special revenue funds 12,158 12,069 12,021 14,566 18,216 17,880 20,926 20,607 22,465 24,778 Debt service funds 932 87 79 72 125 131 123 129 238 247 Unassigned (1,967) (1,021) (910) (1,069) (770) (740) (728) (615) (475) (404) Total all other governmental funds 11,123 11,135 11,190 13,569 17,571 17,271 20,321 20,121 22,228 24,621 Fiscal Year
CITY OF WATSONVILLE, CALIFORNIA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
116
Attachment B
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$ $ $ $ $ $ $ $ $ $
Revenues
Taxes 28,860 27,448 29,725 32,466 35,754 36,198 39,392 43,655 42,029 45,583 Licenses, permits, and fees 3,272 2,757 4,855 5,248 5,795 5,885 6,642 5,971 5,315 3,378 Intergovernmental 7,670 4,530 3,032 2,458 3,336 3,410 3,455 3,417 9,167 5,734 Charges for services 4,773 4,704 2,447 2,458 2,945 2,770 3,224 3,072 3,534 3,396 Fines 804 588 622 552 690 737 723 708 24,412 462
Interest 2,344 2,309 2,084 2,076 2,168 2,435 2,869 3,405 3,280 2,529 Special assessment 172 229 92 91 77 60 58 50 (4,162) -
Miscellaneous 956 475 825 1,995 2,810 1,871 2,491 3,007 3,826 3,940 Total revenues 48,851 43,040 43,682 47,344 53,575 53,366 58,854 63,285 87,401 65,022 Expenditures
Current:
General government 5,594 6,407 10,447 5,574 6,989 7,556 7,978 13,062 11,330 10,089 Public safety 18,473 20,353 20,406 22,707 24,860 24,271 26,744 30,459 30,543 30,012 Housing 3,191 1,566 820 1,298 1,389 2,318 1,158 2,289 2,059 4,159 Streets 8,598 6,509 5,972 4,252 1,672 5,772 5,385 8,759 8,911 7,827 Culture and recreation 6,152 6,051 6,505 7,172 7,090 7,079 7,837 9,406 9,076 8,297 Capital outlay 3,929 1,134 1,581 817 3,286 4,833 2,404 - Debt service:
Principal 2,139 1,381 439 495 429 478 463 730 797 2,391 Interest and fiscal charges 1,267 299 195 159 183 173 161 220 82 147 Total expenditures 49,343 43,700 46,365 42,474 45,898 52,480 52,130 64,925 62,798 62,922 Excess (deficiency) of revenues
over (under) expenditures (492) (660) (2,683) 4,870 7,677 886 6,724 (1,640) 24,603 2,100 Other financing sources (uses)
Bond/note proceeds 3,014 695 191 - - - - 1,541 144 1,649 Transfers in 5,883 4,388 3,238 3,340 3,692 3,562 4,464 5,457 4,750 6,171 Transfers out (5,883) (4,217) (3,309) (3,150) (3,496) (3,290) (4,230) (5,222) (4,535) (5,926) Total other financing sources (uses) 3,014 866 120 190 196 272 234 1,776 359 1,894 Net change in fund balances before
extraordinary items 2,522 206 (2,563) 5,060 7,873 1,158 6,958 136 24,962 3,995 Extraordinary items -228 - - - - - - - - -
Net change in fund balances 2,294 206 (2,563) 5,060 7,873 1,158 6,958 136 24,962 3,995 Debt service as a percentage of ** ** **
noncapital expenditures 26.0% 8.1% 4.1% 1.4% 1.6% 1.5% 1.4% 1.5% 1.4% 4.2% ** Capital Outlay reconciliation amount was used for the percentage calculation. It reduced noncapital expenditures.
Fiscal Year
CITY OF WATSONVILLE, CALIFORNIA
Net Change in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
117
Attachment B
Fiscal Property Sales Franchise Utility User Other
Year Tax Tax Tax Tax Tax Total
$ $ $ $ $ $
2012 12,383 9,276 417 3,068 1,069 26,213
2013 12,090 11,436 365 3,029 1,120 28,040
2014 12,090 11,436 365 3,029 1,120 28,040
2015 11,868 13,988 404 3,437 1,295 30,992
2016 12,846 16,693 455 3,183 1,457 34,634
2017 13,300 16,083 471 3,679 1,793 35,326
2018 13,436 18,393 436 4,019 3,108 39,392
2019 15,669 19,369 460 4,011 3,125 42,634
2020 16,243 19,075 458 4,265 2,906 42,947
2021 16,169 22,232 563 3,994 2,610 45,568
Source: City of Watsonville Finance Department
(amounts expressed in thousands)
CITY OF WATSONVILLE, CALIFORNIA
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
118
Attachment B
Fiscal Total Estimated Assessed
Year Less: Taxable Direct Actual Value as a %
Ended Residential Commercial Industrial Other Unsecured Tax Exempt Assessed Tax Taxable of Actual June 30 Property Property Property Property Property Property Value Rate (1) Value Taxable Value $ $ $ $ $ $ $ % $ %
2012 2,072,140 566,131 104,236 332,645 211,702 169,521 3,117,333 1.15 3,117,333 1.00 2013 2,025,747 565,486 102,758 336,060 217,213 177,934 3,069,330 1.15 3,069,330 1.00 2014 2,091,245 544,645 103,080 329,813 212,372 171,985 3,109,170 1.18 3,109,170 1.00 2015 2,316,558 548,165 106,401 350,110 231,586 185,687 3,367,133 1.18 3,367,133 1.00 2016 2,456,187 563,026 115,344 361,791 235,517 200,675 3,531,190 1.18 3,531,190 1.00 2017 2,606,044 626,252 135,130 394,814 229,211 229,936 3,761,515 1.16 3,761,515 1.00 2018 2,757,691 609,505 168,676 435,526 259,425 252,874 3,977,950 1.17 3,977,950 1.00 2019 2,727,533 583,841 442,945 421,714 262,350 222,957 4,215,426 1.16 4,215,426 1.00 2020 2,858,513 618,090 470,547 459,879 277,705 246,737 4,437,997 1.09 4,437,997 1.00 2021 3,002,026 640,089 485,947 410,766 276,813 205,383 4,610,258 1.16 4,610,258 1.00 Notes:
*Other value contains unitary amount of $31,120
**Unsecured value includes aircraft
(2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.
Based on these calculations a multiplier value was extrapolated and applied to current assessed values.
Source: 2005-06 and Prior, Previously published CAFR Reports Source: ( - ) Data Unavailable
(1.) Total Direct Tax Rate is represented by TRA 02-021 Source: HDL, Coren & Cone
CITY OF WATSONVILLE, CALIFORNIA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(amounts expressed in thousands)
119
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
Property Tax Rates - Direct
and Overlapping
(Per $100 of Assessed Value)
Last Ten Years
Basic
Countywide School
Year Levy Districts Retirement Total
2012 1.000 0.071 0.077 1.148
2013 1.000 0.075 0.077 1.152
2014 1.000 0.109 0.077 1.186
2015 1.000 0.098 0.077 1.175
2016 1.000 0.101 0.077 1.178
2017 1.000 0.086 0.077 1.163
2018 1.000 0.094 0.077 1.171
2019 1.000 0.081 0.077 1.158
2020 1.000 0.087 0.077 1.164
2021 1.000 0.084 0.077 1.161
Source: HDL, Coren & Cone
120
Attachment B
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Value Rank Value Value Rank Value
$ % $ %
S Martinelli And Company 55,433 1 1.20% 35,701 2 1.13%
MPT of Watsonville 47,889 2 1.04%
OW Familly-Lee Road LLC 36,164 3 0.78% 23,440 3 0.74%
Blackbird Homes LLC 26,902 4 0.58%
Freedom Associates LLC 25,958 5 0.56% 19,835 6 0.63%
William J and Neva J Hansen Co Trustees 25,143 6 0.55%
Home Depot Dev 23,287 7 0.51% 18,282 4 0.65%
111 Jenning Drive LLC 22,986 8 0.50%
Harvest Drive Properties LLC 22,344 9 0.48%
Tkg Iii Watsonville LLC 20,891 10 0.45%
Watsonville Hospital Corp 57,905 1 1.85%
WRI Freedom Center LP 17,271 8 0.55%
Granite Construction Co 18,459 7 0.59%
Robert S Martinelli 20,145 5 0.64%
Dayton Hudson Corporation 15,523 9 0.49%
Watsonville Square LLC 14,911 10 0.47%
Totals 306,997 6.65% 241,472 7.74%
Source: HDL, Coren & Cone
2021 2012
CITY OF WATSONVILLE, CALIFORNIA
Principal Property Taxpayers
June 30, 2021
(amounts expressed in thousands)
121
Attachment B
Percent Supplemental Delinquent
Fiscal Total * Current Tax * Of Levy Tax Tax * Total Tax Year Tax Levy Collections Collected Collections Collections Collections $ $ $ $ $ $
2012 6,445,789 6,445,789 100% 59,830 - 6,505,619
2013 7,125,579 7,125,579 100% 30,475 - 7,156,054
2014 8,242,044 8,242,044 100% 69,092 - 8,311,136
2015 7,837,187 7,837,187 100% 112,079 - 7,949,266
2016 7,801,004 7,801,004 100% 117,264 - 7,918,268
2017 8,615,411 8,615,411 100% 200,484 - 8,815,895
2018 8,605,570 8,605,570 100% 225,296 - 8,830,866
2019 10,536,951 10,536,951 100% 238,730 - 10,775,681
2020 10,859,042 10,859,042 100% 212,455 - 11,071,497
2021 10,732,446 10,732,446 100% 127,234 - 10,859,680
Source: City of Watsonville
*Property Tax collection equals property Tax collected due to agreement with the County of Santa Cruz.
With this agreement the City does not receive any Delinquent tax collection.
CITY OF WATSONVILLE, CALIFORNIA
Property Tax Collection
Last Ten Fiscal Years
122
Attachment B
General Special Total Percentage
Fiscal Obligation Assessment Capital Revenue Loans & Capital Primary of Personal Per Year Debt Debt Leases Bonds Notes Leases Government Income Capita $ $ $ $ $ $ $
2012* 4,800 575 1,087 32,237 2,606 - 41,305 5.95% 0.800 2013 5,241 467 86 31,064 5,321 - 42,179 5.81% 0.817
2014 5,082 379 - 30,313 8,181 - 43,955 4.90% 0.852
2015 4,676 290 - 29,057 11,124 - 45,147 5.22% 0.875
2016** 4,254 214 - 677 347 - 5,492 0.59% 0.104
2017 3,818 149 - 461 582 - 5,010 0.50% 0.092
2018 3,406 98 - 235 922 - 4,661 0.47% 0.090
2019 4,283 49 - - 1,639 - 5,971 0.59% 0.113
2020 3,679 - - - 1,693 - 5,372 0.99% 0.216
2021 2,938 - - - 8,150 - 11,088 1.24% 0.216
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. 1 See the Schedule of Demographic and Economic Statistics for the personal income and population data. * Redevelopment Bonds were removed on 1/31/2012.
** Water Revenue Bonds were removed on 6/30/2016
Governmental Activities Business-Type Activities
CITY OF WATSONVILLE, CALIFORNIA
Ratio of Outstanding Debt By Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) 123
Attachment B
Percentage of
Estimated
General Less:Amounts Actual Taxable
Fiscal Obligation Available in Debt Value of Per
Year Debt Service Fund Total Property Capita
$ $ $ $
2012 5,241 932 4,309 0.14% 1,198
2013 5,082 87 4,995 0.16% 1,033
2014 4,676 79 4,597 0.15% 1,123
2015 4,676 72 4,604 0.15% 1,121
2016 4,254 125 4,129 0.13% 1,250
2017 3,818 131 3,687 0.12% 1,438
2018 3,406 123 3,283 0.09% 1,615
2019 4,283 129 4,154 0.10% 1,276
2020 3,679 238 3,441 0.08% 1,497
2021 2,938 247 2,691 0.06% 1,909
Note: Detail of the City's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for estimated actual property value data.
Population data can be found in the Schedule of Demographic and Economic Statistics
CITY OF WATSONVILLE, CALIFORNIA
Ratio of Net General Obligation Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) 124
Attachment B
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$ $ $ $ $ $ $ $ $ $
Debt limit 122,989 121,772 123,043 133,232 139,945 149,679 158,656 166,439 175,678 181,450 Total net debt applicable to limit 4,800 5,241 5,082 4,676 4,129 3,687 3,283 4,154 3,441 2,691 Legal debt margin 117,136 114,555 118,367 128,556 135,816 145,992 155,373 162,285 172,237 178,759 Total net debt applicable to the limit 3.903% 4.304% 4.130% 3.510% 2.950% 2.463% 2.069% 2.496% 1.959% 1.483% as a percentage of debt limit
Legal Debt Margin Calculation for Fiscal Year 2021
Assessed value $4,610,259
Add back: exempt real property 228,404
Total assessed value 4,838,663
Debt Limit = 3.75% of assessed valuation 181,450
Debt applicable to limit 2,938
Less: Amount set aside for repayment of
general obligation debt 247
Total net debt applicable to limit 2,691
Legal debt margin $ 178,759
Source: City of Watsonville
Fiscal Year
(amounts expressed in thousands)
Last Ten Fiscal Years
Legal Debt Margin Information
CITY OF WATSONVILLE, CALIFORNIA
125
Attachment B
Estimated
Total (1) Share of
Debt Percentage Overlapping
Jurisdiction Outstanding Applicable Debt
$ $
Direct Debt:
City of Watsonville 2,938 100% 2,938
Total of Direct Debt 2,938
Overlapping Tax Debt:
Cabrillo Joint Community College District 109,958 9.07% 9,972 Pajaro Valley Unified School District 169,709 26.51% 44,983 Santa Cruz County General Fund
Obligations 65,060 9.14% 5,946
Santa Cruz County Office of Education
General Fund Obligations 7,790 9.14% 712
Pajaro Valley Joint Unified School District
Certificates of Participation 14,795 26.51% 3,922
City of Watsonville General
Fund Obligations (2) 5,587 100.00% 5,587
Successor Agency 8,210 100.00% 8,210
(3)
Total Overlapping Debt 381,109 79,331
Total Direct and Overlapping Bonded Debt 384,047 79,334 Source: Wildan Financial Services
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Includes share of Santa Cruz County Emergency Communication Center obligations ($480,963). (3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage reveue and non-bonded capital lease obligations.
CITY OF WATSONVILLE, CALIFORNIA
Computation of Direct and Overlapping Bonded Debt
June 30, 2021
(amounts expressed in thousands, except per capita amount) 126
Attachment B
Education
Personal (2) Per Level in
Income Capita Years of
Fiscal (amounts expressed Personal Median Formal School (4) Unemployment Year Population (1) in thousands) Income Age (3) Schooling Enrollment Rate (5) $ $
2012 51,611 859,308 16.650 29.9 N/A 19,914 20.5%
2013 51,612 873,974 16.934 29.2 N/A 20,001 19.4%
2014 52,508 896,824 17.080 29.7 N/A 20,362 19.3%
2015 52,087 864,719 16.601 29 N/A 20,438 19.2%
2016 52,891 934,271 17.664 29.9 N/A 20,354 19.2%
2017 53,015 981,527 18.514 30.1 N/A 20,400 19.2%
2018 53,434 1,052,216 19.692 29.7 N/A 20,279 19.3%
2019 53,021 1,014,448 19.133 29.7 N/A 20,106 10.4%
2020 51,515 1,068,567 20.742 30.3 N/A 18,616 10.1%
2021 51,366 1,122,733 21.857 30.3 N/A 19,772 14.8%
Source: MuniServices, LLC & Data Reporting Office Ca. Dept of Ed.
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Income Data is derived from previous income adjusted for inflation.
3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
CITY OF WATSONVILLE, CALIFORNIA
Demographic and Economic Statistics
Last Ten Fiscal Years
4.) Student Enrollment reflects the total number of students enrolled in the Pajaro Valley Unified School District. Other School Districts w/in the City are not accounted for in this statistics. 127
Attachment B
Percentage Percentage
of Total City of Total City
Employees Rank Employment Employees Rank Employment
Pajaro Valley Unified School District 3,418 1 14.18% 2,066 1 11.95% Monterey Mushrooms Inc. 790 2 3.28%
Watsonville Community Hospital 620 3 2.57% 662 2 3.83%
Granite Construction 566 4 2.35%
Salud Para La Gente 445 5 1.85%
Lakeside Organic Gardens LLC 425 6 1.76%
City of Watsonville * 388 7 1.61% 362 5 2.09%
Fox Factory 309 8 1.28% 400 3 2.31%
S Martinelli & Co. 275 9 1.14% 180 8 1.04%
West Marine Products 256 10 1.06% 407 4 2.35%
Target 237 6 1.37%
Del Mar Food Products, Inc 200 7 1.16%
Mi Pueblo Food Center 172 9 1.00%
Couch Distributing 165 10 0.95%
Total 7,492 31.09% 4,851 28.06%
* Includes Certificated, classified & Admin.
**Includes contractors.
(1) Total City Labor Force provided by EDD Labor Force Data https://www.labormarketinfo.edd.ca.gov/data/labor-force-and-unemployment-for-cities-and-census-areas.html Source: 2010-2011 previously published CAFR
Source: BL Data, MuniServices, LLC & Called Employers
2021 2012
CITY OF WATSONVILLE, CALIFORNIA
Principal Employers
Current Fiscal Year and Ten Years Ago
128
Attachment B
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General Government 7 6 6 7 7 9 9 9 9 10
City Clerk 4 3 3 3 3 3 3 3 3 4
Community Development 16 13 14 13 11.5 14 15 16 16 12
Finance 22 22 17 16 16 10 10 11 11 10
Fire 36 36 35 41 41 40 42 43 43 31
Informaion Services * n/a n/a n/a n/a n/a 8 8 8 9 11
Police:
Officers 70 73 68 64 67.2 66 75 75 75 71
Civilians 18 19 17 22 26 27 22 24 23 21
Library 24 29 29 29 27.41 25 25 26 27 23
Parks & Community
Services 30 27 27 27 25.88 26 29 29 26 22
Public Works 17 16 16 16 14 14 13 15 15 15
Airport 8 9 9 9 9 9 10 13 13 10
LLMAD 1 1 1 1 1 1 1 1 1 1
Gas Tax n/a n/a n/a n/a n/a 0 2 4 4 3
Parking Garage 0 0 0 0 0 0 0 0 0 0
Redevelopment and
Housing 10 4 4 4 5.2 3 4 4 4 5
Solid Waste 34 37 38 36 44 46 49 43 43 43
Wastewater 41 44 46 47 49 53 55 59 59 52
Water 30 27 31 34 35 38 41 44 44 44
368 366 361 369 382.19 392 413 427 425 388
* Information Services was created and moved out of General Government.
Source: City of Watsonville's Biennial Budget documents.
CITY OF WATSONVILLE, CALIFORNIA
Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years
129
Attachment B
CITY OF WATSONVILLE, CALIFORNIA
Operating Indicators by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General Government:
City Council meetings 25 24 22 27 19 21 25 25 23 22
Resolutions processed 158 169 153 181 199 187 192 180 229 282 Recruitments 36 29 52 46 59 66 41 55 44 76
Community Development:
Planning application reviews 289 332 259 393 361 369 423 442 396 230 Construction inspections 1,459 1,784 1,851 1,725 1,165 2,933 3,828 3,624 2,904 1,029 Building Permits 766 852 625 768 817 862 1,034 810 758 1,493 Finance:
Payroll checks issued 12,784 12,336 12,203 12,327 12,511 12,547 13,323 13,028 13,045 11,200 Utility accounts 14,684 14,618 14,685 15,023 15,024 14,985 15,043 15,070 14,556 14,474 A/P checks issued 7,634 7,484 7,460 7,313 7,517 7,644 7,588 8,062 7,695 6,890 Fire:
Field incidents dispatched 4,734 4,092 4,123 4,282 4,282 4,997 5,070 5,286 5,427 6,539 Information Services:
Client Computers 450 450 542 542 531 531 646 646 682 698 Library:
Items used/checked out 231,384 259,986 262,929 411,234 411,234 439,234 272,468 326,888 303,137 34,242 Parks & Community Services:
Registered Participants 807 628 506 549 475 479 413 297 335 48 Police:
Moving and Parking Citations 12,161 11,204 9,876 10,524 11,105 12,747 9,600 15,659 9,738 8,721 Service Calls Dispatch 62,047 62,126 61,239 65,288 69,668 67,632 65,635 44,386 56,901 53,730 URC Crime Rate 32 27 25 39 40 43 38 34 34 30
(# crimes/1,000 population, calendar years)
Wastewater:
Avrg. Annual volume per day septage
treated (in million gallons) 6.65 6.98 7.70 7.81 3.39 3.49 4.38 5.38 4.94 5.90 Water:
Water production (acre feet) 7,758 7,761 7,163 6,597 6,648 7,102 6,906 7,882 7,100 Solid Waste:
Refuse handled (tons) 32,812 32,995 32,607 40,204 41,389 36,028 34,286 35,109 35,202 39,898 Recycled material (tons) 6,258 5,847 6,041 4,946 7,466 7,081 8,188 7,070 6,050 5,808 Source: City of Watsonville departments
130
Attachment B
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
Fire:
Stations 2 2 2 2 2 2 2 2 2 2
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 18 18 18 17 17 17 22 22 22 22
Patrol motorcycles 6 6 6 4 5 5 5 5 6 6
Library:
Buildings 2 2 2 2 2 2 2 2 2 2
Parks & Community Services:
Parks 21 21 21 26 26 26 26 26 26 26
Acreage of parks 85.0 85.0 85.0 143.0 143.0 143.0 143.0 143.0 143 143 Community Centers 6 6 6 5 5 5 5 6 8 8
Public Works:
Miles of streets 96 96 96 89 89 89 89 89 89 89
Airport:
Runways 2 2 2 2 2 2 2 2 2 2
Wastewater:
Treatment plants 1 1 1 1 1 1 1 1 1 1
Capacity of treatment plant* 12.1 12.1 12.1 12.1 12.1 12.1 12.1 12.1 12.1 12.1 *(gallons per day in millions)
Water:
Maximum pumping capacity* 18.7 18.7 18.7 19.1 19.1 19.1 19.1 19.1 19.1 19.1 Average consumption* 6.3 6.3 6.3 6.1 5.9 5.9 5.9 6.2 7 7 *(gallons per day in millions)
Solid Waste:
Collection trucks 19 16 16 16 19 19 20 20 25 25
Source: City of Watsonville departments
Last Ten Fiscal Years
Capital Assets Statistics by Function
CITY OF WATSONVILLE, CALIFORNIA
131
Attachment B
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Attachment B
City of Watsonville, California
Measure Y Fund
(Formerly known as Measure G)
Financial Statements
For the Year Ended June 30, 2021
Attachment C
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Attachment C
CITY OF WATSONVILLE
MEASURE Y FUND
FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
Table of Contents
Independent Auditor’s Report .............................................................................................................................. 1 Financial Statements:
Balance Sheet ........................................................................................................................................ 3 Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................. 4 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ......................................................................................................................... 5 Notes to the Basic Financial Statements ............................................................................................... 7 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance with Applicable Requirements and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................................ 9 Attachment C
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Attachment C
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of City
Council of the City of Watsonville, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Measure Y Fund (Measure Y) of the City of Watsonville, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing such an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
1 Attachment C
Opinion
In our opinion, the financial statements referred to above fairly, in all material respects, the financial position of the Measure Y Fund as of June 30, 2021, and the change in financial position and the budgetary comparison as listed in the Table of Contents for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of a Matter
As discussed in Note 1, the financial statements present only the Measure Y Fund and do not purport to, and do not present fairly the financial position of the City of Watsonville as of June 30, 2021, the changes in its financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2021, 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 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 17, 2021
2 Attachment C
ASSETS
Cash and investments 3,093,802 $
Accounts receivable 892,514
Total Assets $ 3,986,316
LIABILITIES
Accounts payable 123,918 $
Accrued liabilities 137,300
Total Liabilities 261,218
FUND BALANCE
Restricted for:
Fire services 1,695,211
Police services 1,768,392
Parks and recreation 261,495
Total Fund Balance 3,725,098
TOTAL LIABILITIES AND FUND BALANCE $ 3,986,316
CITY OF WATSONVILLE
MEASURE Y FUND
BALANCE SHEET
June 30, 2021
See accompanying Notes to Basic Financial Statements.
(FORMERLY KNOWN AS MEASURE G)
3 Attachment C
AND CHANGE IN FUND BALANCE
REVENUES
Sales tax - Fire 1,909,467 $
Sales tax - Police 2,343,923
Sales tax - Parks and recreation 435,390
Interest - Fire 774
Interest - Police 1,264
Other revenue - police 25,708
Total Revenues 4,716,526
EXPENDITURES
Fire 1,165,013
Police 2,178,543
Park and Recreation 173,895
Total Expenditures 3,517,451
Excess (deficiency) of revenues over expenditures 1,199,075 OTHER FINANCING SOURCES (USES):
Transfers out for debt services payments (286,307)
NET CHANGE IN FUND BALANCE 912,768
FUND BALANCE
Beginning Fund Balance 2,812,330
Ending Fund Balance $ 3,725,098
CITY OF WATSONVILLE
MEASURE Y FUND
STATEMENT OF REVENUES, EXPENDITURES,
For The Year Ended June 30, 2021
See accompanying Notes to Basic Financial Statements.
(FORMERLY KNOWN AS MEASURE G)
4 Attachment C
CITY OF WATSONVILLE
MEASURE Y FUND
(FORMERLY KNOWN AS MEASURE G)
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGE IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended June 30, 2021
Variance
Final Favorable
REVENUES Budget Actual (Unfavorable)
Sales tax - Fire 1,609,200 $ 1,909,467 $ 300,267 $
Sales tax - Police 2,413,800 2,343,923 (69,877)
Sales tax - Parks and recreation - 435,390 435,390
Interest - Fire 5,000 774 (4,226)
Interest - Police 5,000 1,264 (3,736)
Other revenue - Police 600 25,708 25,108
Total Revenues 4,033,600 4,716,526 682,926
EXPENDITURES
Fire:
Salaries and Wages 936,920 919,727 17,193
Operations 261,360 241,619 19,741
Capital Outlay 31,850 3,667 28,183
Total Fire 1,230,130 1,165,013 65,117
Police:
Salaries and Wages 1,582,334 1,202,173 380,161
Operations 598,714 788,702 (189,988)
Capital Outlay 276,500 187,668 88,832
Total Police 2,457,548 2,178,543 279,005
Park and Recreation:
Salaries and Wages - 56,202 (56,202)
Operations - 117,693 (117,693)
Total Park and Recreation - 173,895 (173,895)
Total Expenditures 3,687,678 3,517,451 170,227
Excess (deficiency) of revenues over expenditures 345,922 1,199,075 853,153 Other financing sources (uses):
Transfers out for debt services payments - Fire (286,307) (286,307) - NET CHANGE IN FUND BALANCE 59,615 912,768 853,153
FUND BALANCE
Beginning Fund Balance 2,812,330
Ending Fund Balance $ 3,725,098
See accompanying Notes to Basic Financial Statements.
5 Attachment C
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Attachment C
CITY OF WATSONVILLE
MEASURE Y FUND
(FORMERLY KNOWN AS MEASURE G)
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
In the June 3, 2014 election, City of Watsonville (City) voters approved Measure G, establishing a temporary half-cent transaction sales and use tax. The Measure G Fund (Fund) was established to accumulate revenues transmitted by the State Board of Equalization (BOE), the agency responsible for administering and collecting the transactions and use taxes for the City, and apportion them to essential services outlined within the approved expenditure plan.
On March 3, 2020, City voters approved Measure Y to renew and continue the half-cent transaction sales and use tax. The Measure G Fund was renamed as the Measure Y Fund effective in fiscal year 2021, and the fund was used to accumulate revenues transmitted by the State Board of Equalization and apportion them to essential services outlined within the approved expenditure plan.
The financial statements presented only the activities of the Measure Y Fund, and are not intended to present the financial position and changes in financial position of the City of Watsonville, in accordance with accounting principles generally accepted in the United States of America.
B. Basis of Accounting
The Measure Y Fund of the City is maintained on the modified accrual basis of accounting. As such, revenues are recognized when they become susceptible to accrual, that is, when they become both measurable and available to finance expenditures of the current period. Expenditures are recognized in the accounting period in which the liability is incurred (when goods are received or services rendered).
C. Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
NOTE 2 - CASH AND INVESTMENTS
Cash and investments at June 30, 2021, consist of the following:
Pooled cash and investments with the
City of Watsonville $3,093,802
Please refer to the notes of the City's June 30, 2021 Comprehensive Annual Financial Report regarding cash and investments for additional detail.
7 Attachment C
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Attachment C
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING,
ON COMPLIANCE WITH THE APPLICABLE REQUIREMENTS
AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of City
Council of the City of Watsonville, California
We have audited, in accordance with the 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, the financial statements of the City of Watsonville Measure Y Fund (Measure Y) as of and for the year ended June 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated December 17, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the Measure Y financial statements, we considered the Measure Y’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Measure Y’s internal control. Accordingly, we do not express an opinion on the effectiveness of Measure Y’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of Measure Y’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
9 Attachment C
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Measure Y’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Our procedures included the applicable audit procedures and tests of compliance with the applicable provisions of City Ordinance No. 1393-19 Section. 3- 6.1102 Program Restrictions.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
We have also issued a separate Memorandum on Internal Control dated December 17, 2021, which is an integral part of our audit and should be read in conjunction with this report.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Measure Y’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Measure Y’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
This report is intended solely for the information and use of the City Council, others within the City, and is not intended to be and should not be used by anyone other than these specified parties; however, this restriction is not intended to limit the distribution of the report, which is a matter of public records.
Pleasant Hill, California
December 17, 2021
10 Attachment C
Reso No. (CM)
Reference: Resolution 175-21 (CM)
ri 2/17/2022 7:57:08 PM
1 RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AMENDING THE 2021-22 BUDGET TO AUTHORIZE
$2,508,632 BUDGET APPROPRIATIONS INTO VARIOUS FUNDS AND
TO AUTHORIZE FOUR ADDITIONAL POSITIONS
WHEREAS, on June 22, 2021, the City Council adopted Resolution No. 175-21 (CM) approving the Final Budget for the City of Watsonville for Fiscal Year 2021-22; and WHEREAS, Section 1107 of the City’s Charter provides that at any meeting after the adoption of the budget the Council may amend or supplement the budget so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not appropriated in the budget; and WHEREAS, Section 1107 of the City’s Charter also provides that no officer, department or agency of the City shall, during any fiscal year, expend or incur any obligation to expend money for any purposes not authorized by or in excess of the amounts appropriated by any budget, as amended, for a given classification or expenditure; and
WHEREAS, current projections show that without budget adjustments, various City Departments will go over budget by the end of the Fiscal Year 2021-2022; and WHEREAS, departments are also projecting $1,717,000 in additional revenues in some areas; and
WHEREAS, City staff recommends some increases and four additional positions (two IT Analysts, one Utility Worker, and one Senior Environmental Project Analyst) to be added to departmental budgets to meet increases in demand for services.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
Reso No. (CM)
Meeting Date: 022222
2 That the City Council hereby approves amendment of the Final Budget for the City of Watsonville for Fiscal Year 2021-2022 and authorizes certain budget appropriations and four new additional positions (two IT Analysts, one Utility Worker, and one Senior Environmental Project Analyst) for Fiscal Year 2021-22, as fully described on Exhibit “A,” attached hereto and incorporated herein for Fiscal Year 2021-2022, ending June 30, 2022.
********************************
Attachment A: Recommended Appropriations Detail
Line Dept. Type Fund Org Object Project Acct. Description FY 21-22
Amount
One time /
ongoing Explanation
1 Fire Revenue 0150 450 5895 Other Revenues 484,000 one time Strike Team Reimbursements 2 Fire Expense 0150 450 7012 Overtime 580,000 one time Strike Team Overtime 3 Fire Expense 0150 450 7561 Fuels & Lubricants 24,000 ongoing Increase Fuel Costs 4 Fire Expense 0150 450 7731 MSC Charges 56,000 ongoing Increased Shop Costs 5 Police Expense 0150 410 7561 Fuels & Lubricants 100,000 ongoing Increase Fuel Costs 6 CDD Expense 0150 315 7011 Regular Salaries and Wages 46,989 ongoing moving Planner from housing fund 7 CDD Expense 0204 368 7011 Regular Salaries and Wages (46,989) ongoing Moving Planner to General Fund 8 CDD Expense 0291 603 7322 Other Materials and Supplies 42,752 one time furniture and remodeling 9 CDD Expense 0205 908 7855 14843 Non Structural Improvements 65,000 one time Parklets program carryforward 10 Finance Expense 0150 230 7307 Expert and Consulatation Services 66,000 one time Consultant Contracts 11 City Council Expense 0150 110 7232 00001 District 1 Council Member 1,500 ongoing restore council travel budget 12 City Council Expense 0150 110 7232 00002 District 2 Council Member 1,500 ongoing restore council travel budget 13 City Council Expense 0150 110 7232 00003 District 3 Council Member 1,500 ongoing restore council travel budget 14 City Council Expense 0150 110 7232 00004 District 4 Council Member 1,500 ongoing restore council travel budget 15 City Council Expense 0150 110 7232 00005 District 5 Council Member 1,500 ongoing restore council travel budget 16 City Council Expense 0150 110 7232 00006 District 6 Council Member 1,500 ongoing restore council travel budget 17 City Council Expense 0150 110 7232 00007 District 7 Council Member 1,500 ongoing restore council travel budget 18 PW Expense 0150 512 7361 Other Contract Services 74,000 ongoing Cart Recovery, trail maintenance, and
landscaping
19 PW Expense 0150 220 7021 Temporary & Casual Wages 30,000 ongoing Custodial Staff 20 PW Expense 0150 220 7324 Rep & Maintenance 20,000 ongoing Building Maintenance and Repair 21 PW Expense 0150 220 7361 Other Contract Services 24,000 ongoing Janitorial Contract 22 PW Expense 0150 510 7361 Other Contract Services 97,000 one time cost sharing with CalTrans for PG&E 23 Airport Revenue 0730 560 5821 Fuel Sales 290,000 ongoing Increased fuel revenues 24 Airport Revenue 0730 564 5459 Hanger 275,000 ongoing Increased hanger revenues 25 Airport Expense 0730 560 7562 Fuels & Lubricants - Charge outs 145,000 ongoing Increased fuels expenses 26 Airport Expense 0730 560 7303 Legal Services 420,000 one time Increased legal expenses 27 PW Expense 0710 543 7011 Regular Salaries and Wages 32,065 ongoing Sr. Environmental Project Analyst 28 PW Expense 0740 571 7011 Regular Salaries and Wages 19,315 ongoing Utility Worker I clean up and grafitti 29 PW Expense 0720 596 7011 Regular Salaries and Wages (35,000) ongoing moving Electrical Tech to Utility admin 30 PW Expense 0710 540 7011 Regular Salaries and Wages 35,000 ongoing moving Electrical Tech from Water 31 IT Revenue 0790 285 5289 Cost Allocation Reimbursement 98,000 ongoing Increased recoveries from PW and LIB 32 IT Expense 0790 285 7011 Regular Salaries and Wages 98,000 ongoing salary for new IT analyst position 33 PW Expense 0720 596 7721 Cost Allocation Plan Charges 35,000 ongoing Supporting IT position 34 LIB Expense 0150 620 7721 Cost Allocation Plan Charges 63,000 ongoing Supporting IT position 35 LIB Expense 0150 620 7011 Regular Salaries and Wages (63,000) ongoing moving position to IT 36 PW- MSC Revenue 0760 545 5247 Muni Service Center Charges 570,000 ongoing Increased shop recoveries 37 PW- MSC Expense 0760 545 7505 Vehicle parts & supplies 280,000 ongoing Increased Vehicle part costs 38 PW- MSC Expense 0760 545 7562 Fuels & Lubricants - Charge outs 290,000 ongoing Increased Fuel costs Expense 2,508,632
Revenues 1,717,000
Exhibit "A"