Town Council
March 28, 2023

last fiscal year, a 4.4% overall increase.

The only negative revenue category is the use of money and property which stands at ($406,753). This decrease is due to the decrease in the PARS Sec 115 pension account which is due to overall decline in the market for equity and fixed income securities for fiscal year 2022. See NOTE 2 for more information.

Approximately 92% of the Town’s revenues are generated from four major sources, Charges for Services, Property Taxes and Assessments, Operating and Capital Grants and Contributions, and Sales and use tax.

The following discusses variances in these key revenues from the prior fiscal year:

1. Charges for Services – Charges for services has declined by a total of $626,589 or 19.8% from last year.

Governmental activities contributed $705,077 to this decrease. Building and Planning fees have decreased $164,376 (building permits and ASRB review). There were decreases in public works fees of $540,856, which includes road impact fees and engineering and plan checks (building related fees). No significant changes in the Town’s Fee Schedule have taken place since May 2013.

There is a $6,942 increase in recreation fees which included May Day Fun Run sponsorships this year and co-ed softball.

Business type activities (Sewer) accounted for $78,488 increase in charges for services. This increase results from the planned annual increase in sewer fees paid by residential and commercial properties that who are connected to sewer (See Page 17 and 18 for further details about the sewer fees).

Item B Page 23 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED

2. Property Taxes and Assessments – The property taxes and assessments category for fiscal year 2022 includes not only Property Tax – secured, unsecured, SB 813, and prior years, but also the additional categories of Homeowner Property Tax Relief (HOPTR), and Property Tax in-lieu.

Fiscal year 2022 revenue shows an increase of 10.3% or $589,177 due to increased property taxes of $236,880 in secured property tax and $288,053 of in Vehicle License Fees from the state from prior years.

The library revenue also increased $35,351 which is requested annually from the Town’s share of the San Mateo County Library JPA funds (the Library JPA).

3. Grants and Contributions – Operating and Capital – The Grants and Contributions category for fiscal year 2022 increased a total of $1,399,162 from last fiscal year.

Operating grants increased $772,398. The American Rescue Plan Act (ARPA) of 2021 received from the Federal government through the State of California contributed $652,835. These funds are advanced through the state to local governments and expenses (specific Town infrastructure projects) are reported against the advances as expended. Measure A revenue (sales tax Measure from County) has increased $64,160 and the Town received $35,233 from the state in Housing Department and CalRecycle grants.

Capital (one time) grants increased $626,764. The State Highway Bridge Program (HBP) Old La Honda Bridge Capital grant of $796,722 and Portola Road Bridge of $40,413 account for most of the increase, the expenses for these grants were in last fiscal year and grants receipted and received in fiscal year 2022.

4. Sales and use tax – Sales tax experienced a $175,152 or 28% increase in fiscal year 2022 due to an increase in sales tax revenues from the State of California.

Expenses
Governmental and business-type activities expenses of the Town totaled $13,688,736 (see table on Page 14) for the year, a 11.8% or $1,445,055 increase from last fiscal year. Governmental activities expenses totaled $13,269,057 or 97% of total expenses. Governmental activities expenses also include depreciation expense, all capital expense that is not depreciated (such as roads capital projects), and compensated absences. In addition, Governmental activities expenses include OPEB and pension plan expenses as calculated by the CalPERS actuarial report and the GASB 75 OPEB actuarial report (NOTE 11). Each of the departments expense highlights follow in the order it appears on Page 14 on the ‘Changes in Net Position’ table.

Town Council expenses increased $8,100 or 11% due to Townwide elections being held this year and no elections last fiscal year.

The Administration and Finance Department expenses increased by $190,253 or 11% from fiscal year 2021 to fiscal year 2022. This is mostly due to an additional new administrative staff position. Pension, OPEB, and compensated absences costs remain about the same and are reported in the Administration and Finance Department expenses and not included in expenses of other departments.

Item B Page 24 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
Planning, Building and Grounds, Town-wide Overhead, Trails and Stables, Barkley Fields, Library Services, and Recreation and Open Space all increased less than 10% or $50,000.

Safety Services costs represented 25% or $3,421,815 of total governmental activities expenses. There was a $152,723 or 4.7% increase from last year.

Most of the increase is due to a $234,987 increase in contractual police services, due to contractual increase for services from San Mateo County Sheriff Services which began in fiscal year 2019. This contract increase includes continuation of the current level of basic services, plus the enhancement of one additional motorcycle deputy on duty during the day shift. There was a $63,298 decrease in professional services due to a decrease in the Town’s Defensible Space Matching Program.

Public Works costs amounted to $5,266,227 or 38% of total governmental expenses, public works costs increased $904,013 or 21% from fiscal year 2021. Most operations expenses remained the same.

The largest single capital asset (depreciable) expense this year in Public Works is the 2022 purchase of a new dump truck which cost $106,018.

One of the main components of the Public Works Department is capital project expenses (most are not capital assets, therefore are not depreciated). Capital projects are usually one-time expenses and included in the capital section of the budget. Capital projects for fiscal year 2022 increased $1,048,221 or 56%. The following are capital project expenses for this year and the last two years:

Capital Projects
2021-22
Expenses
2020-21
Expenses
2019-20
Expenses
Storm Drain Project $ 84,220 $ - $ 44,735
Annual Road Improvement Project 370,353 302,120 479,432 Woodside School Path 574,223
Trails Projects 4,700
Bicycle and Pedestrian Improvements 34,385
Old La Honda Bridge Improvement 2,710 1,035,870 188,137 Kings Mountain Road Bridge Impv 254,360
Portola Rd Bridge Improvement 2,210,878 92,281 373,830
Kings Mountain Road Bank Repair 2,680
Bike Ped Kings Mtn Rd Safety 2,953 2,680
Kings Mt Rd ROW Stabilization 361,872
Glens Pathway 125,305 340,463
Solar/EV Installation 115,425 17,380
Barkley Improvements 73,442 7,791
Center Trail Equestrian Bridge 77,387 167,165
Woodside Rd Median Beautification 16,718
TOTAL 2,925,664 $ 1,877,443 $ 2,560,388 $
Item B Page 25 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
Capital projects are funded through transfers in of a variety of budgeted funds. For fiscal year 2022 the following funds were used to fund the capital projects listed above:

General Fund $ 2,341,921
Measure A 49,202
Measure W 90,746
Gas Tax (SB1) 104,000
Barkley Fund 73,442
Road Impact Fund 266,353
Total $ 2,925,664
Business type activities (the Town’s small sewer system) had overall revenues that were $78,564 or 13% higher than last fiscal year. The main reason for the increase is because of an overall increase in sewer fees of $59,395 and four new sewer connection fees (two for Redwood Creek and two for the Town Center Sewer) of $108,154.

Expenses for the sewer system were $52,600 or 14% higher than last fiscal year. This fiscal year the contractual sewer maintenance was $18,478 higher and there was a Town Center Sewer assessment performed this year which cost $11,320. Salaries and benefits allocated to the sewer are also $20,000 higher.

For more details about Business type activities (revenues and expenses) see Pages 17-19.

Item B Page 26 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
The change in net position for the fiscal years ended June 30, 2022, and June 30, 2021, follows:

Govern- Business- Govern- Businessmental type mental type Activities Activities Total Activities Activities Total Amount Percent Revenues:

Program revenues:

Charges for services $ 1,855,894 $ 686,401 $ 2,542,295 $ 2,560,971 $ 607,913 $ 3,168,884 $ (626,589) -19.8% Grants and contributions:

Operating 1,550,352 - 1,550,352 777,954 - 777,954 772,398 99.3% Capital 851,270 - 851,270 224,506 - 224,506 626,764 279.2% 4,257,516 686,401 4,943,917 3,563,431 607,913 4,171,344 772,573 18.5% General revenues:

Property taxes & assessments 6,304,366 - 6,304,366 5,715,189 - 5,715,189 589,177 10.3% Sales and use tax 797,163 - 797,163 622,011 - 622,011 175,152 28.2% Property transfer tax 351,748 - 351,748 372,260 - 372,260 (20,512) -5.5% Other taxes 237,918 - 237,918 227,880 - 227,880 10,038 4.4% Franchises 597,059 - 597,059 580,641 - 580,641 16,418 2.8% Business licenses 171,859 - 171,859 174,681 - 174,681 (2,822) -1.6% Fines and forfeitures 115,160 - 115,160 102,010 - 102,010 13,150 12.9% Use of money and property (406,753) 2,708 (404,045) 569,564 2,632 572,196 (976,241) -170.6% Other general revenues 30,618 - 30,618 47,614 - 47,614 (16,996) -35.7% Total revenues 12,456,654 689,109 13,145,763 11,975,281 610,545 12,585,826 559,937 4.4% Expenses:

Governmental activities:

Town Council 81,045 - 81,045 72,945 - 72,945 8,100 11.1% Administration and Finance 1,914,568 - 1,914,568 1,724,315 - 1,724,315 190,253 11.0% Planning Department 1,199,892 - 1,199,892 1,182,588 - 1,182,588 17,304 1.5% Buildings and Grounds 276,192 - 276,192 251,562 - 251,562 24,630 9.8% Town-wide Overhead 438,191 - 438,191 414,287 - 414,287 23,904 5.8% Safety Services 3,421,815 - 3,421,815 3,269,092 - 3,269,092 152,723 4.7% Trails and Stables 88,248 - 88,248 82,284 - 82,284 5,964 7.2% Barkley Fields 373,579 - 373,579 328,333 - 328,333 45,246 13.8% Library Services 194,594 - 194,594 185,269 - 185,269 9,325 5.0% Public Works 5,266,227 - 5,266,227 4,362,214 - 4,362,214 904,013 20.7% Recreation and Open Space 14,706 - 14,706 3,713 - 3,713 10,993 296.1% Business-type activities:

Sewer Utility - 381,218 381,218 - 329,503 329,503 51,715 15.7% Cañada Corridor Sewer - 38,461 38,461 - 37,576 37,576 885 2.4% Total expenses 13,269,057 419,679 13,688,736 11,876,602 367,079 12,243,681 1,445,055 11.8% Excess (Deficiency) of revenues over
expenditures before transfers (812,403) 269,430 (542,973) 98,679 243,466 342,145 (885,118) -258.7% Transfers 58,500 (58,500) - 56,500 (56,500) - 0.0% -
Change in net position (753,903) 210,930 (542,973) 155,179 186,966 342,145 (885,118) -258.7% Net position:

Beginning of year 23,711,215 1,524,912 25,236,127 23,308,596 1,337,946 24,646,542 589,585 2.4% Restatements - - - 247,440 - 247,440 (247,440) 100%
Beginning, as adjusted 23,711,215 1,524,912 25,236,127 23,556,036 1,337,946 24,893,982 342,145 1.4% End of year $ 22,957,312 $ 1,735,842 $ 24,693,154 $ 23,711,215 $ 1,524,912 $ 25,236,127 $ (542,973) -2.2% Changes in Net Position
Total change
2022 2021

Item B Page 27 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
Governmental Activities
The cost of all governmental activities this year (exclusive of business/sewer activities) is $13,269,057.

Of this amount (as shown in the Statement of Activities on Page 28) the amount that taxpayers ultimately financed for governmental activities was $9,011,541. Those who directly benefited from town programs paid $1,855,894 (charges for service). Other governments and organizations subsidized certain programs with grants and contributions in the amount of $1,550,352 for operations and $851,270 for capital. The Town paid the remaining "public benefit" portion of government activities with $6,304,366 in property taxes, $2,301,525 in other general revenues, and ($404,045) in the use of money and property due to the decline in the value of the PARS investment mentioned on Page 10).

Referring to the Changes in Net Position table (Page 14), total resources available during the year to finance governmental operations were $12,456,654. This consisted of $4,257,516 (charges for services and grants) in program revenues and $8,199,138 in general revenues.

Total governmental activities operating expenses during the year is $13,269,057. Net position beginning balance on July 1, 2021, was $23,711,215. This decreased by $753,903 to an ending balance net position of $22,957,312 on June 30, 2022. This net position decrease is primarily due to a 12% increase in expenses offset in part by 4% increase in revenue of $481,373.

The specific decreases in governmental activities revenue are charges for services of $705,077 (due to less building permit fees this fiscal year) and use of money and property revenues of $976,317 due to a decrease in the PARS pension investment account (See NOTE 2 for more details) These decreases in revenue were offset by an increase in operating grants of $772,398 (due to the federal government ARPA grant), Capital grants of $626,764 (Old La Honda Road Bridge HBP grant), and Property taxes of $589,177.

The following table shows the cost of each of the Town’s major programs and the net cost of the programs.

Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the Town’s taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2022, and 2021, are as follows:
2022 2021 2022 2021 2022 2021
Governmental activities:

Town Council $ - $ - $ 81,045 $ 72,945 $ (81,045) $ (72,945) Administration and Finance 113,117 111,807 1,914,568 1,724,315 (1,801,451) (1,612,508) Planning Department 622,596 751,739 1,199,892 1,182,588 (577,296) (430,849) Buildings and Grounds - - 276,192 251,562 (276,192) (251,562) Town-wide Overhead - - 438,191 414,287 (438,191) (414,287) Safety Services 183,862 190,158 3,421,815 3,269,092 (3,237,953) (3,078,934) Trails and Stables 7,179 917 88,248 82,284 (81,069) (81,367) Barkley Fields 4,375 8,750 373,579 328,333 (369,204) (319,583) Library Services - - 194,594 185,269 (194,594) (185,269) Public Works 3,295,545 2,476,660 5,266,227 4,362,214 (1,970,682) (1,885,554) Recreation and Open Space 30,842 23,400 14,706 3,713 16,136 19,687 Total governmental activities $ 4,257,516 $ 3,563,431 $ 13,269,057 $ 11,876,602 $ (9,011,541) $ (8,313,171) Operating Revenue Operating Expenses
Net (Expense)
and Changes
in Net Position
Item B Page 28 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
A comparison of revenues by source for the fiscal years ended June 30, 2022, and 2021, are as follows:
(1,000,000) 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Property taxes & assessments
Charges for services
Capital Grants & contributions
Operating Grants & contributions
Franchises
Sales and use tax
Use of money and property
Property transfer tax
Other taxes
Business licenses
Fines and forfeitures
Other general revenues
Governmental Activities Revenues by Source
Comparison FY2022 to FY2021
FY 2022 FY 2021

Item B Page 29 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
Business-type Activities
Business-type activities incurred $419,679 in expenses during the fiscal year. The Town has three businesstype funds, which are the Redwood Creek, Sewer Utility, and Cañada Corridor Sewer Funds. The expenses and program revenues for the business-type activities for the fiscal year ended June 30, 2022, and 2021, are as follows:
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Redwood Creek Sewer
Sewer Utility
Cañada Corridor Sewer
Business-type Activities
Program Revenues and Expenses
FY2022
Program Revenues Expenses
0 100,000 200,000 300,000 400,000 500,000 600,000
Redwood Creek Sewer
Town Sewer Utility
Cañada Corridor Sewer
Business-type Activities
Program Revenues and Expenses
FY2021
Program Revenues Expenses
Item B Page 30 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
Business-type Activities, Continued
As reported in the Statement of Activities, the net position of the Town’s Business-type Activities, as of June 30, 2022, increased $210,930 from fiscal year 2021. The following table is a re-statement of the Statement of Business-type Activities outlining the components of this increase.

Business-type Activities
Two-year Comparison of Change in Net Position
2022 2021 Change % Change
Revenues:

Charges for Services $ 686,401 $ 607,913 $ 78,488 12.9% Operating grants and contributions - - - 100.0%
Sewer Contractor Settlement - - - 100.0%
Use of money and property (interest) 2,708 2,632 76 2.9% Total $ 689,109 $ 610,545 $ 78,564 12.9%
Expenses:

Redwood Creek Sewer $ - $ - $ - 100.0%
Town Sewer Utility 381,218 329,503 51,715 15.7%
Cañada Corridor Sewer 38,461 37,576 885 2.4%
Total $ 419,679 $ 367,079 $ 52,600 14.3%
Excess (Deficiency) of revenues over
expenditures before transfers $ 269,430 $ 243,466 $ 25,964 10.7% Transfers (58,500) (56,500) (2,000) 3.5%
Change in Net Position $ 210,930 $ 186,966 $ 23,964 12.8% Business-type activities total revenue for fiscal year 2022 is $689,109. Revenues for this year exceeded expenses by $210,930. These revenues are received from two sources, Charges for Sewer Services $686,401 and LAIF Investment Earnings $2,708. 99.6% of the funding received for Sewer business services is derived through charges for this service.

Charges for sewer services were up 12.9% or $78,564. This increase is largely due to an overall increase of 8% in residential and commercial sewer fees (a sewer utility bill paid by residents and business’ through their property tax bill), in fiscal year 2022. There are two new connections to the Town Center Sewer and two to the Redwood Creek Sewer, which resulted in a $79,654 and $28,500 connection fees respectively.

There was one new connection last fiscal year. LAIF interest rates were about the same this year as last year.

A portion of the sewer expenses and revenues represents a December 2016 Town Center Sewer fund loan of $775,000 from the General Fund. This loan, approved by Town Council, is at a rate of 2.5% interest and a term of 9 years and was used to replace the 30-year-old sewer pump. In June 2022 the fifth payment of $100,000 was paid back to the general fund from the Town Center Sewer pump fund and a $351,209 principal balance remains.

Sewer expenses were $52,600 higher in fiscal year 2022. Expenses are mainly maintenance, transportation and treatment contracts that cover operations of the sewer. These operating expenses have stayed about the same as last fiscal year. The expenses that contributed to the increase include an increase in the Town Sewer Utility contractual sewer system maintenance of $18,478, a sewer condition assessment costing $11,320 and approximately $20,000 increased salaries and benefits. Depreciation expenses were the same year to year.

Transfers represent overhead payments to the General Fund for sewer administration expenses.

Item B Page 31 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The Town of Woodside uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the Town government, reporting the Town’s operations in more detail than the government-wide financial statements, beginning on Page 32.

The Town’s governmental funds provide information on near-term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2022, the Town’s governmental funds reported combined fund balances of $11,088,941 (Page 33). This is a decrease of $592,336, or 5%, from the balance ending fiscal year 2021 of $11,681,277. In the previous fiscal year there was an 8% increase. The 5% decrease this fiscal year results primarily from a decrease in General Fund revenues from charges for service and use of money and property categories of revenue and increased department expenses, primarily from capital outlay.
♦ The 7% increase of General Fund Taxes and Assessments of $552,687 this fiscal year is mostly due to a continued overall increase in property taxes of $236,880 from San Mateo County and $288,053 for prior years VLF (Vehicle License Fees) from the State of California.

The two sources of funding for VLF are non-basic aid school districts’ ERAF (Educational Revenue Augmentation Fund) monies and property tax revenues. ERAF occurs when local property taxes are sufficient to support local schools without major State of California aid, a condition that occurs in counties with high property values and relatively few school children. The State makes these districts whole for any monies that are used to pay the State’s VLF obligation. The State is lagging in these VLF payments to San Mateo County, and this 2022 payment to the Town represents prior years VLF revenues.

The remaining balance sheet assets are about the same as last fiscal year.

As discussed earlier (Page 10), the Use of Money and Property revenue category decreased $909,269, due to decline in market value in the PARS pension account in fiscal year 2022 of $331,344 compared with an increase of $558,087 in fiscal year 2021.

The decrease in the PARS pension account also resulted in a $519,432 or 13%, decrease in Restricted Cash and Investments
Capital Outlay department expenditures increased $887,962, or 39%, due to increased expenses in capital projects discussed in part on page 13 and 20.
♦ The Library Operations Fund balance stayed about the same at ($1,752). The Library Fund supports the Town’s share of the operation and maintenance of the library facility. The Town is a party to the JPA between cities within San Mateo County and the JPA holds funds in trust for Woodside. For fiscal year 2022, $865,123 was added to the JPA fund through property taxes. This left the JPA Woodside balance at $4,447,237 as of June 30, 2022.
♦ The Measure A Fund accounts for the Town’s share of a county-wide half-cent sales tax that is dedicated to transportation related projects. There was a slight increase in Measure A fund balance this fiscal year of $20,199. This fund is used to maintain and fund capital road projects.

Item B Page 32 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS, CONTINUED ♦ The Capital Projects Fund was a new major fund in fiscal year 2016, created to update infrastructure and spend down the General Fund balance. A 5-year (fiscal year 2022-2026) $8,670,896 capital improvement program budget was approved by Town Council in fiscal year 2021 of which $3,630,896 was appropriated for fiscal year 2022 of which $3 million was spent. This fund reflects all the expenses for capital projects approved in the budget. Transfers in (made on a quarterly basis) from other Town funds (General, Measure A, Road Impact Fee, Gas Tax, Sewer, and grants), also appropriated through the budget, reduce these capital expenses, so that the fund is intended to be close to zero at year end.

CAPITAL ASSETS
The capital assets of the Town are those assets which are used in the performance of the Town’s functions.

On June 30, 2022, net capital assets of the governmental activities totaled $16,756,337. Depreciation on capital assets is recognized in the government-wide financial statements. The following table shows the Town’s Capital Assets net of depreciation:
2022 2021 2022 2021
Land $ 9,468,373 $ 9,468,373 $ - $ -
Buildings and improvements 6,900,178 7,006,825 - -
Machinery and equipment 387,786 221,981 - -
Pumps and collection systems - - 1,296,629 1,356,112
Total $ 16,756,337 $ 16,697,179 $ 1,296,629 $ 1,356,112 Governmental Activities Business-type Activities
Additional information on the Town’s capital assets can be found in Note 4 on page 70 of this report.

Capital Asset Activity
New governmental capital asset expense activity included: $106,018 for a new 2021 Ram 5500 dump truck, the old 2008 Ford dump truck it replaced was sold for $11,380 at auction. No new capital assets were added for business (sewer) type activities. Additional information on the Town’s capital assets can be found in Note 4 on Page 70 of this report.

LONG TERM LIABILITIES
Governmental Activities total for long term liabilities decreased by 39% for a total of $2,268,841 (includes 10% of the total of compensated absences for both fiscal years). Additional information can be found in Note 6 (Page 71).

The largest decrease from last fiscal year is $1,739,832, or 42%, due to a decrease in net pension liability.

For the most recent CalPERS actuary report ending June 30, 2021, CalPERS net pension liability decreased from $4,135,509 in fiscal year 2021 to $2,395,677 in fiscal year 2022. This is due to a 21% CalPERS return on investment in fiscal year 2021, which was unusually high. Expected annual return on investments for CalPERS is 7%. See Note 10 starting on Page 76. $2,292,218 represents the governmental-type portion of the liability and $103,459 is the business-type portion.

Item B Page 33 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis
Long Term Liabilities, Continued
Compensated absences due at year end decreased a total of $46,892 or 9%, due to retirement of one long term employee. The total compensated absences liability is $478,743 of which $430,869 is a long-term liability and $47,874 is a short-term liability. This entire liability is in governmental-type (no businesstype).

There was a decrease of $482,117 due to an increase in Other Postemployment Benefits (OPEB) liabilities..

The amount is calculated by using the Actuarially determined OPEB Liability of $1,875,713, net of market value of assets (Town of Woodside’s PARS OPEB account) of $1,252,067, which is $623,646 ($482,117 less than fiscal year 2021). (See NOTE 11 Page 84 first chart). The entire long-term liability is in governmental-type (no business-type).

NEXT YEAR’S BUDGETED APPROPRIATIONS
The 2022-23 budget adopted by Town Council for all Town funds (excluding Sewer, Parking District, Capital, and transfers in and out) is $11,398,579. Final budget for fiscal year 2021-22 is found in the ‘Budget to Actual’ statement of Page 40 and the differences are summarized as follows:

FY2022-23 FY2021-22 Amount Percentage
(Budget) (Budget) Change Change
General fund:

Town Council $ 66,130 $ 145,500 $ (79,370) -54.5%
Administration and Finance 1,720,800 1,530,420 190,380 12.4% Planning Department 1,237,350 1,225,572 11,778 1.0%
Buildings and Grounds 210,835 185,350 25,485 13.7%
Town-wide Overhead 718,500 672,500 46,000 6.8%
Safety Services 4,087,464 3,852,732 234,732 6.1%
Trails and Stables 99,095 116,525 (17,430) -15.0%
Barkley Fields (incl construction) 255,860 242,810 13,050 5.4% Public Works 1,749,350 1,737,700 11,650 0.7%
Recreation and Open Space 70,000 70,000 - 0.0%
Total general fund: 10,215,384 9,779,109 436,275 4.5%
Special revenue funds:

Library Operations 127,175 113,040 14,135 12.5%
Measure A and W 324,700 201,205 123,495 61.4%
Traffic Safety 52,650 42,650 10,000 23.4%
Road Impact Fees 359,425 277,300 82,125 29.6%
Gas Tax 137,020 85,820 51,200 59.7%
Supplemental Law Enforcement 182,225 175,000 7,225 4.1% Total special revenue funds: 1,183,195 895,015 288,180 32.2% Total Budget: $ 11,398,579 $ 10,674,124 $ 724,455 6.8%

Item B Page 34 Town Council Meeting March 28, 2023
Town of Woodside
Management’s Discussion and Analysis
NEXT YEAR’S BUDGETED APPROPRIATIONS, CONTINUED

1. General Fund – Overall there is a $436,275 or 4.5% increase in the General Fund budget.

Almost all the departments have increased spending. The highlights include decreased spending of $79,370 in Town Council due to funding for general elections in fiscal year 2022 and no elections in fiscal year 2021; Safety Services $234,732 increase based on annual San Mateo County Sherriff contract increase and the addition of automated license plate readers; Administration and Finance $190,380 mostly due to a full fiscal year of a new administrative staff member hired in fiscal year 2022 and contractual services of a the preparation of a technology master plan.

Decreased spending of $17,430 in Trails due to more capital trails projects in fiscal year 2022 than in fiscal year 2023.

Increased spending in Building and Grounds of $25,485 due to the restoration of Kite Hill and Village Hill as natural preserve.

Town-wide Overhead increase of $46,000 includes upgrades or replacement of the Town’s permit management system.

Those departments that stayed about the same are Planning, Barkley Fields, Public Works, and Recreation.

2. Library Services – Budget from year to year remained about the same.

3. Measure A and W– Budget increased because revenue from these sales taxes increased. Expenses include contributions to the capital projects of Glens Pathway and other bike and pedestrian safety.

4. Traffic Safety, Road Impact Fees, and Gas Tax – Budget from year to year increased, due to increasing gas tax and road impact fees which are directly related to increases in capital road projects.

5. Supplemental Law Enforcement - Budget from year to year remained about the same.

Requests for Information
This Basic Financial Statements is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the Town’s finances. If you have any questions about this report or need additional financial information, contact the Town of Woodside Finance Department, P.O. Box 620005, Woodside, CA 94062, or visit the Town’s web page at www.woodsidetown.org.

Item B Page 35 Town Council Meeting March 28, 2023

BASIC FINANCIAL STATEMENTS
Item B Page 36 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 37 Town Council Meeting March 28, 2023

STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The Statement of Net Position on page 27 summarizes the financial position of the Town indicating total assets and liabilities, with the net difference being the net position or condition as of June 30, 2022, the end of the fiscal year. This information is summarized between the Town’s Governmental Activities, Business-Type Activities and the Town in total.

The Statement of Activities on page 28, summarizes Town expenses, Program revenues and General Revenues during the twelve-month for the fiscal year ending June 30, 2022 and the resulting change in the net position. The Towns expenses are listed by major program and activity (i.e. Government vs.

Business-type). 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 the governmental program. The Town’s general revenues are then listed in the Governmental Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

The Town’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue Funds, and Capital Projects Funds. Activities of the General Fund include public works and improvements, safety and library, planning and zoning and building inspections and general administration among other things. Business-type activities include enterprise activities including three sewer funds.

The Statement of Net Position and the Statement of Activities are prepared on the same basis as is used by most businesses, which means they include the Town’s assets and liabilities, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the Town’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between Town funds have been eliminated.

These financial statements, along with the fund financial statements and footnotes, are called Basic Financial Statements.

Item B Page 38 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 39 Town Council Meeting March 28, 2023
Governmental Business-type
Activities Activities Total
Cash and investments (Note 2) $ 933,243 8,581,600 $ 9,514,843 $ Receivables:

Accounts receivable 191,878 7,372 199,250
Interest receivable 15,232 1,544 16,776
Intergovernmental receivable 61,692 - 61,692
Taxes receivable 804,159 - 804,159
Other receivable 18,986 - 18,986
Restricted cash and investments (Note 2) 2,157,749 - 2,157,749 Internal balances 351,209 (351,209) -
Capital assets (Note 4):

Nondepreciable 9,468,373 - 9,468,373
Depreciable 7,287,964 1,296,629 8,584,593
Total assets 28,938,842 1,887,579 30,826,421

DEFERRED OUTFLOWS OF RESOURCES
Pension Plan (Note 10) 882,519 23,947 906,466
OPEB (Note 11) 402,291 - 402,291
Total deferred outflows of resources 1,284,810 23,947 1,308,757 Accounts payable and accrued liabilities 385,352 27,630 412,982 Deposit payable 708,212 - 708,212
Compensated absences- current portion 47,874 - 47,874
Long-term liabilities (Note 6):

Compensated absences 430,869 - 430,869
Note payable - 29,500 29,500
Net OPEB liability (Note 11) - 623,646 623,646
Net pension liability (Note 10) 2,292,218 103,459 2,395,677 Total liabilities 4,488,171 160,589 4,648,760

DEFERRED INFLOWS OF RESOURCES
Pension plan (Note 10) 2,146,878 15,095 2,161,973
OPEB (Note 11) - 631,291 631,291
Total deferred inflows of resources 2,778,169 15,095 2,793,264 Net investment in capital assets 16,756,337 1,296,629 18,052,966 Restricted 3,263,671 - 3,263,671
Unrestricted 2,937,304 439,213 3,376,517
Total Net Position $ 22,957,312 $ 1,735,842 $ 24,693,154 The accompanying notes are an integral part of these financial statements

NET POSITION
Town of Woodside
Statement of Net Position
June 30, 2022
ASSETS

LIABILITIES
Item B Page 40 Town Council Meeting March 28, 2023
Program Revenues
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
Primary government:

Governmental activities:

Town Council 81,045 $ $ - $ - $ -
Administration and Finance 1,914,568 113,117 - -
Planning Department 1,199,892 587,363 35,233 -
Buildings and Grounds 276,192 - - -
Town-wide Overhead 438,191 - - -
Safety Services 3,421,815 22,577 161,285 -
Trails and Stables 88,248 994 6,185 -
Barkley Fields 373,579 4,375 - -
Library Services 194,594 - - -
Public Works 5,266,227 1,097,126 1,347,149 851,270
Recreation and Open Space 14,706 30,342 500 -
Total governmental activities 13,269,057 1,855,894 1,550,352 851,270 Business-Type Activities:

Redwood Creek Sewer - 28,500 - -
Sewer Utility 381,218 615,549 - -
Cañada Corridor Sewer 38,461 42,352 - -
Total business-type activities 419,679 686,401 - -
Total primary government $ 13,688,736 $ 2,542,295 $ 1,550,352 $ 851,270 General Revenues:

Taxes:

Property taxes, levied for general purposes
Sales and use tax
Property transfer tax
Other taxes
Franchises
Business licenses
Fines and forfeitures
Use of money and property
Other general revenues
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position - Beginning of year
Net position - Ending
The accompanying notes are an integral part of these financial statements Functions/Programs
Town of Woodside
Statement of Activities
For the Year Ended June 30, 2022
Item B Page 41 Town Council Meeting March 28, 2023
Governmental Business-Type
Activities Activities Totals
$ (81,045) $ - $ (81,045)
(1,801,451) - (1,801,451)
(577,296) - (577,296)
(276,192) - (276,192)
(438,191) - (438,191)
(3,237,953) - (3,237,953)
(81,069) - (81,069)
(369,204) - (369,204)
(194,594) - (194,594)
(1,970,682) - (1,970,682)
16,136 - 16,136
(9,011,541) - (9,011,541)
- 28,500 28,500
- 234,331 234,331
- 3,891 3,891
- 266,722 266,722
(9,011,541) 266,722 (8,744,819)
6,304,366 - 6,304,366
797,163 - 797,163
351,748 - 351,748
237,918 - 237,918
597,059 - 597,059
171,859 - 171,859
115,160 - 115,160
(406,753) 2,708 (404,045)
30,618 - 30,618
8,199,138 2,708 8,201,846
58,500 (58,500) -
8,257,638 (55,792) 8,201,846
(753,903) 210,930 (542,973)
23,711,215 1,524,912 25,236,127
$ 22,957,312 $ 1,735,842 $ 24,693,154
Net(Expense) Revenue and
Changes in Net Position
Item B Page 42 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 43 Town Council Meeting March 28, 2023

FUND FINANCIAL STATEMENTS

MAJOR FUNDS
The Fund Financial Statements present only individual major funds which nonmajor funds are combined in a signal column. The non-major funds are listed on Page 97 in this report followed by supplemental financial statements for each of these funds beginning on page 98.

Major funds are defined as having significant activities or balances in the current year.

Fund Description
Governmental Funds:

General Fund Primary operating fund of the Town; Accounts for all activities except those legally or administratively required to be accounted for in other funds.

Library Operations Accounts for revenues and expenditures derived from the Town’s membership in the San Mateo County Library System Joint Powers Authority.

Measure A (1988) Accounts for the Town’s share of a one-half cent sales tax revenue restricted for transportation purposes. Contributions from the General Fund are annually transferred to this fund to supplement the funds received from the tax. Excess General Fund contributions are classified in fund balance as committed.

Capital Projects Accounts for multi/year Capital Improvement projects including bridges, road repair/replacement and trail and pedestrian improvement.

Item B Page 44 Town Council Meeting March 28, 2023
Town of Woodside
Balance Sheet
Governmental Funds
June 30, 2022
Major Funds
Special Revenue Funds
General Library
Fund Operations Measure A
Cash and investments (Note 2) $ 3,501 7,184,689 $ $ 636,206 Receivable:

Accounts receivable 191,878 - -
Interest receivable 12,885 - 1,062
Intergovernmental receivable - - 27,290
Taxes receivable 804,159 - -
Other receivable - - -
Restricted cash and investments (Note 2) - 2,157,749 -
Due from other funds 300,775 - -
Advances to other funds 351,209 - -
Total assets $ 11,003,344 $ 3,501 $ 664,558
Liabilities:

Accounts payable and accrued liabilities $ 312,113 $ 5,253 $ 1,371 Due to other funds - - -
Deposits payable 708,212 - -
Total liabilities 1,020,325 5,253 1,371
Fund balances:

Nonspendable 351,209 - -
Restricted 2,157,749 - 663,187
Unassigned 7,474,061 (1,752) -
Total fund balances 9,983,019 (1,752) 663,187
Total liabilities and fund balances $ 3,501 11,003,344 $ $ 664,558 The accompanying notes are an integral part of these financial statements ASSETS

LIABILITIES AND FUND BALANCES
Item B Page 45 Town Council Meeting March 28, 2023
Capital Nonmajor
Projects Governmental
Fund Funds Totals
$ - $ 757,204 $ 8,581,600
- - 191,878
- 1,285 15,232
- 34,402 61,692
- - 804,159
- 18,986 18,986
- - 2,157,749
- - 300,775
- - 351,209
$ - $ 811,877 $ 12,483,280
$ 47,209 $ 19,406 $ 385,352
300,775 - 300,775
- - 708,212
347,984 19,406 1,394,339
- - 351,209
- 792,471 3,613,407
(347,984) 7,124,325 -
(347,984) 792,471 11,088,941
$ - $ 12,483,280 811,877 $
Item B Page 46 Town Council Meeting March 28, 2023
Town of Woodside
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2022
Fund Balances - Total Governmental Funds $ 11,088,941
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet. 16,756,337
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet.

Compensated absences (total) $ (478,743)
Net OPEB liability (623,646)
Net pension liability (2,292,218) (3,394,607)
Pension and OPEB obligations result in deferred outflows and inflows of resources associated with the actuarial value of contributions, assets, and liabilities Deferred outflows of resources 1,284,810
Deferred inflows of resources (2,778,169) (1,493,359)
Net Position of Governmental Activities $ 22,957,312
The accompanying notes are an integral part of these financial statements Item B Page 47 Town Council Meeting March 28, 2023
Town of Woodside
Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position Governmental Activities
June 30, 2022
Governmental
Funds Changes Statement of
Balance Sheet Reclassifications in GAAP Net Position
Cash and investments 8,581,600 $ - $ $ - $ 8,581,600
Receivables:

Accounts receivable 191,878 - - 191,878
Interest receivable 15,232 - - 15,232
Intergovernmental receivable 61,692 - - 61,692
Taxes receivable 804,159 - - 804,159
Other receivables 18,986 - - 18,986
Internal balances - 527,028 - 527,028
Restricted cash and investments (Note 2) - 2,157,749 - 2,157,749 Due from other funds 300,775 (300,775) - -
Advances to other funds 351,209 (527,028) - (175,819)
Capital assets, net - - 16,756,337 16,756,337
Total assets 12,483,280 (300,775) 16,756,337 28,938,842 Pension plan - - 882,519 882,519
OPEB - - 402,291 402,291
Total assets and deferred outflows of resources $ 12,483,280 $ (300,775) $ 18,041,147 $ 30,223,652 Accounts payable and accrued liabilities $ 385,352 $ - $ - $ 385,352 Deposits payable 708,212 - - 708,212
Due to other funds 300,775 (300,775) - -
Compensated absences - current - - 47,874 47,874
Total current liabilities 1,394,339 (300,775) 47,874 1,141,438 Compensated absences - - 430,869 430,869
Net OPEB liability - - 623,646 623,646
Net pension liability - - 2,292,218 2,292,218
Total liabilities 1,394,339 (300,775) 3,394,607 4,488,171 Pension plan - - 2,146,878 2,146,878
OPEB - - 631,291 631,291
Total deferred inflows of resources - - 2,778,169 2,778,169 Nonspendable reported in:

General Fund 351,209 (351,209) - -
Restricted reported in:

Special revenue funds 3,613,407 (3,613,407) - -
Unassigned (deficit), reported in:

General Fund 7,474,061 (7,474,061) - -
Special revenue funds (349,736) 349,736 - -
Net position: -
Net investment in capital assets - - 16,756,337 16,756,337 Restricted - - 3,263,671 3,263,671
Unrestricted - 11,088,941 (8,151,637) 2,937,304
Total fund balances/net position $ 11,088,941 $ 11,868,371 - $ $ 22,957,312 The accompanying notes are an integral part of these financial statements ASSETS

LIABILITIES

DEFERRED OUTFLOWS OF RESOURCES

DEFERRED INFLOWS OF RESOURCES

FUND BALANCES/NET POSITION
Item B Page 48 Town Council Meeting March 28, 2023
Town of Woodside
Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds
For the year ended June 30, 2022
Special Revenue Funds
General Library
Fund Operations Measure A

REVENUES
Taxes and assessments $ 7,144,460 $ 175,952 $ 367,765
Licenses and permits 792,534 - -
Fines and forfeitures 16,973 - -
Intergovernmental 2,330,128 - -
Use of money and property (342,794) - 1,983
Charges for service 816,711 - -
Other revenues 48,516 - -
Total revenues 10,806,528 175,952 369,748

EXPENDITURES
Current:

Town Council 81,045 - -
Administration and Finance 1,693,843 - -
Planning Department 1,198,981 - -
Buildings and Grounds 225,449 - -
Town-wide Overhead 431,213 - -
Safety Services 3,244,702 - -
Trails and Stables 88,248 - -
Barkley Fields 301,914 - -
Library Services - 148,825 -
Public Works 1,699,445 - 200,347
Recreation and Open Space 14,706 - -
Capital outlay - 156,497 -
Total expenditures 148,825 9,136,043 200,347

REVENUES OVER (UNDER)
EXPENDITURES 1,670,485 27,127 169,401

OTHER FINANCING SOURCES (USES)
Transfers in (Note 8) - 375,000 -
Transfers out (Note 8) (2,415,414) (26,500) (149,202)
Total other financing sources (uses) (2,040,414) (26,500) (149,202) Net change in fund balances (369,929) 627 20,199
FUND BALANCES:

Beginning of year 10,352,948 (2,379) 642,988
End of year 9,983,019 $ (1,752) $ 663,187 $
The accompanying notes are an integral part of these financial statements Major Funds
Item B Page 49 Town Council Meeting March 28, 2023
Capital Nonmajor
Projects Governmental
Fund Funds Totals
$ - $ 397,343 $ 8,085,520
- - 792,534
- 110,596 127,569
- 161,285 2,491,413
- 2,319 (338,492)
2,250 410,354 1,229,315
- 20,279 68,795
2,250 1,102,176 12,456,654
- - 81,045
- - 1,693,843
- - 1,198,981
- - 225,449
- - 431,213
- 175,000 3,419,702
- - 88,248
- - 301,914
- - 148,825
- 413,345 2,313,137
- - 14,706
3,033,930 - 3,190,427
3,033,930 588,345 13,107,490
(3,031,680) 513,831 (650,836)
- 2,996,733 3,371,733
- (722,117) (3,313,233)
2,996,733 (722,117) 58,500
(34,947) (208,286) (592,336)
(313,037) 1,000,757 11,681,277
$ 792,471 (347,984) $ 11,088,941 $
Item B Page 50 Town Council Meeting March 28, 2023
Town of Woodside
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2022
Net change in fund balances - total governmental funds $ (592,336) Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:

Capital outlay and other capitalized expenditures $ 299,474 Depreciation expense (240,316) 59,158
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

Change in compensated absences (total) 46,892
Change in net pension liability (350,740)
Change in net OPEB liability 83,123 (220,725)
Change in net position of governmental activities $ (753,903) The accompanying notes are an integral part of these basic financial statements.

This schedule reconciles the Net Change in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.

Item B Page 51 Town Council Meeting March 28, 2023
Town of Woodside
Reconciliation of Governmental Fund Basis Statements to Government-wide Statement of Activities For the year ended June 30, 2022
Capital
Asset GovernmentFund Based (Additions), (a) (b) wide
Expenditures Compensated Retirements & OPEB Pension Expenses Totals Absences Depreciation Adjustments Expense Plan Totals Governmental activities:

Town Council $ 81,045 -$ -$ $ - $ - $ - $ 81,045
Administration and Finance 1,693,843 (46,892) - - (83,123) 350,740 1,914,568 Planning Department - 1,198,981 911 - - - 1,199,892
Buildings and Grounds 225,449 - 50,743 - - - 276,192
Town-wide Overhead 431,213 - 6,978 - - - 438,191
Safety Services - 3,419,702 2,113 - - - 3,421,815
Trails and Stables 88,248 - - - - - 88,248
Barkley Fields 301,914 - 71,665 - - - 373,579
Library Services 148,825 - 45,769 - - - 194,594
Public Works 2,313,137 - 9,389 2,943,701 - - 5,266,227
Recreation and Open Space 14,706 - - - - - 14,706
Capital outlay - 3,190,427 - (3,190,427) - - -
Total governmental activities $ 13,107,490 $ (46,892) $ 187,568 $ (246,726) $ (83,123) $ 350,740 $ 13,269,057 The accompanying notes are an integral part of these financial statements (a) For the year ended June 30, 2022 the Town recognized $43,375 in total OPEB expense with the difference between the amount shown above of $(83,123) in Administration and Finance expense line and the remaining amount of $126,498 representing the Employer contribution made subsequent to the measurement date (Note 11) (b) For the year ended June 30, 2022 the Town recognized $954,011 in total pension expense with the difference between the amount shown above $350,740 in the Administration and Finance expense line and the remaining amount of $590,923 representing the Pension contribution made subsequent to the measurement date (Note 10) Item B Page 52 Town Council Meeting March 28, 2023
Town of Woodside
Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Fund and Major Special Revenue Funds For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)

REVENUES
Taxes and assessments 6,306,450 $ $ 6,306,450 $ 7,144,460 $ 838,010 Licenses and permits 793,000 793,000 792,534 (466)
Fines and forfeitures 17,000 17,000 16,973 (27)
Intergovernmental 689,000 1,349,745 2,330,128 980,383
Use of money and property 44,500 44,500 (342,794) (387,294) Charges for services 980,950 980,950 816,711 (164,239)
Other revenues 33,750 33,750 48,516 14,766
Total revenues 8,864,650 9,525,395 10,806,528 1,281,133

EXPENDITURES
Current:

Town Council 145,500 145,500 81,045 64,455
Administration and Finance 1,535,420 1,535,420 1,693,843 (158,423) Planning Department 1,225,572 1,225,572 1,198,981 26,591 Buildings and Grounds 185,350 185,350 225,449 (40,099)
Town-wide Overhead 672,500 672,500 431,213 241,287
Safety Services 3,847,732 3,847,732 3,244,702 603,030
Trails and Stables 116,525 116,525 88,248 28,277
Barkley Fields 239,835 242,335 301,914 (59,579)
Library Services - - - -
Public Works 1,737,700 1,737,700 1,699,445 38,255
Recreation and Open Space 70,000 70,000 14,706 55,294
Capital outlay - - 156,497 (156,497)
Total expenditures 9,776,134 9,778,634 9,136,043 642,591

REVENUES OVER (UNDER)
EXPENDITURES (911,484) (253,239) 1,670,485 1,923,724

OTHER FINANCING SOURCES (USES)
Transfers in - 375,000 375,000 -
Transfers (out) - (2,543,396) (2,415,414) 127,982
Total other financing sources (uses) - (2,168,396) (2,040,414) 127,982 Net change in fund balances (911,484) (2,421,635) (369,929) 2,051,706 FUND BALANCE:

Beginning of year 10,352,948 10,352,948 10,352,948 -
End of year $ 9,441,464 $ 7,931,313 $ 9,983,019 $ 2,051,706 The accompanying notes are an integral part of these financial statements Budgeted Amounts
General Fund
Item B Page 53 Town Council Meeting March 28, 2023
Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ 201,000 $ 201,000 $ 175,952 $ (25,048) $ 345,000 $ 345,000 $ 367,765 $ 22,765 - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 2,650 2,650 1,983 (667)
- - - - - - - -
- - - - - - - -
201,000 201,000 175,952 (25,048) 347,650 347,650 369,748 22,098 - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 86,540 148,825 (62,285) - - - -
- - - - 201,205 201,205 200,347 858
- - - - - - - -
- 8,000 - 8,000 - - - -
- 94,540 148,825 (54,285) 201,205 201,205 200,347 858
201,000 106,460 27,127 (79,333) 146,445 146,445 169,401 22,956 - - - - - - - -
(76,500) (76,500) (26,500) 50,000 (191,000) (191,000) (149,202) 41,798 (76,500) (76,500) (26,500) 50,000 (191,000) (191,000) (149,202) 41,798 124,500 29,960 627 (29,333) (44,555) (44,555) 20,199 64,754 (2,379) (2,379) (2,379) - 642,988 642,988 642,988 -
$ 122,121 $ 27,581 $ (1,752) $ (29,333) $ 598,433 $ 598,433 $ 663,187 $ 64,754 The accompanying notes are an integral part of these financial statements Library Operations
Budgeted Amounts
Measure A
Budgeted Amounts
Item B Page 54 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 55 Town Council Meeting March 28, 2023

PROPRIETARY FUNDS
Proprietary funds account for Town's operations financed and operated in a manner similar to a private business enterprise. The intent of the Town is that the cost of providing goods and services be financed primarily through user charges.

All of the Town's Enterprise Funds have been identified as major proprietary funds.

Fund Description
MAJOR FUNDS:

Redwood Creek Sewer Accounts for revenues and expenses associated with the sewer connections to the Redwood Creek Sewer Assessment District, allocated to sewer system improvements and rehabilitation.

Sewer Utility Accounts for all activities associated with the operation and maintenance of providing sewage services. This fund includes a related reserve fund, used to accumulate revenues in support of prior year sewer operating costs, to be paid when negotiations with other agencies are completed.

Cañada Corridor Sewer Accounts for the operation and maintenance of services provided by the Cañada Corridor Sanitary Sewer Area.

Item B Page 56 Town Council Meeting March 28, 2023
Town of Woodside
Statement of Net Position
Enterprise Funds
June 30, 2022
Redwood Creek Sewer Cañada
Sewer Utility Corridor Sewer Totals
Current Assets:

Cash and investments $ 258,354 $ 552,587 $ 122,302 $ 933,243 Receivables:

Accounts - 6,587 785 7,372
Interest 359 1,006 179 1,544
Total current assets 258,713 560,180 123,266 942,159
Noncurrent assets:

Capital assets, net - 1,104,509 192,120 1,296,629
Total assets 258,713 1,664,689 315,386 2,238,788

DEFERRED OUTFLOWS OF RESOURCES
Pension Plan 10,713 13,234 - 23,947
Total assets and deferred outflows of resources $ 269,426 $ 1,677,923 $ 315,386 $ 2,262,735 Current Liabilities:

Accounts payable and accrued liabilities $ - $ 27,630 $ - $ 27,630 Total current liabilities - 27,630 - 27,630
Noncurrent Liabilities:

Advance from other funds - 351,209 - 351,209
Net pension liability 27,021 76,438 - 103,459
Note payable - 29,500 - 29,500
Total Liabilities 27,021 484,777 - 511,798

DEFERRED INFLOWS OF RESOURCES
Pension Plan 8,921 6,174 - 15,095
Total deferred inflows of resources 8,921 6,174 - 15,095 Net Position
Net investment in capital assets - 1,104,509 192,120 1,296,629 Restricted for capital projects - - - -
Unrestricted 233,484 82,463 123,266 439,213
Total Net Position 233,484 1,186,972 315,386 1,735,842
Total liabilities, deferred inflows of resources and
net position $ 269,426 $ 1,677,923 $ 315,386 $ 2,262,735 The accompanying notes are an integral part of these financial statements ASSETS

LIABILITIES
Item B Page 57 Town Council Meeting March 28, 2023
Cañada
Redwood Creek Sewer Corridor
Sewer Utility Sewer Totals

OPERATING REVENUES
Charges for services $ 28,500 $ 557,137 $ 42,352 $ 627,989 Other - 58,412 - 58,412
Total operating revenues 615,549 28,500 42,352 686,401

OPERATING EXPENSES
Salaries and benefits - 59,748 - 59,748
Professional services - 256,561 22,451 279,012
Materials and supplies - 10,332 - 10,332
Depreciation - 43,473 16,010 59,483
Total operating expenses 370,114 - 38,461 408,575
OPERATING INCOME(LOSS) 245,435 28,500 3,891 277,826

NONOPERATING REVENUES (EXPENSES)
Interest revenue 703 1,679 326 2,708
Interest expense - (11,104) - (11,104)
Total non-operating revenues, net 703 (9,425) 326 (8,396) NET INCOME BEFORE TRANSFERS 236,010 29,203 4,217 269,430 Transfers out (Note 8) - (55,000) (3,500) (58,500)
Total transfers - (55,000) (3,500) (58,500)
CHANGE IN NET POSITION 181,010 29,203 717 210,930
NET POSITION:

Beginning of year 204,281 1,005,962 314,669 1,524,912
End of year $ 233,484 $ 1,186,972 $ 315,386 $ 1,735,842 The accompanying notes are an integral part of these financial statements Town of Woodside
Statement of Revenues, Expenses, and Changes in Fund Net Position Enterprise Funds
For the year ended June 30, 2022
Item B Page 58 Town Council Meeting March 28, 2023
Cañada
Redwood Creek Sewer Corridor
Sewer Utility Sewer Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received (refunds paid) from (to) customers/users for services provided $ 28,280 $ 639,971 $ 41,454 $ 709,705 Cash payments to suppliers for goods and services - (245,773) (22,451) (268,224) Cash payments to employees for services - (59,748) - (59,748) Net cash provided by operating activities 28,280 334,450 19,003 381,733 Loan received (paid) - (5,900) - (5,900)
Advance received (paid) - (88,994) - (88,994)
Transfers received (paid) - (55,000) (3,500) (58,500)
Net cash used by noncapital financing activities - (149,894) (3,500) (153,394) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest paid - (11,104) - (11,104)
Investment income received 703 1,679 326 2,708
Net cash provided by investing activities 703 (9,425) 326 (8,396) Net increase (decrease) in cash and cash equivalents 175,131 28,983 15,829 219,943 CASH AND CASH EQUIVALENTS:

Beginning of year 229,371 377,456 106,473 713,300
End of year $ 552,587 258,354 $ 122,302 $ 933,243 $
Reconciliation of income from operations to net
cash provided by operating activities:

Operating income (loss) $ 245,435 28,500 $ 3,891 $ 277,826 $ Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation - 43,473 16,010 59,483
Pension expense - 12,348 - 12,348
(Increase) decrease in current assets:

Accounts receivable - 25,111 (785) 24,326
Interest receivable (220) (689) (113) (1,022)
Increase (decrease) in liabilities:

Accounts payable and accrued liabilities - 8,772 - 8,772 Net cash provided by operating activates $ 334,450 28,280 $ 19,003 $ 381,733 $ The accompanying notes are an integral part of these financial statements Town of Woodside
Statement of Cash Flows
Enterprise Funds
For the year ended June 30, 2022
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Item B Page 59 Town Council Meeting March 28, 2023

FIDUCIARY FUND
The Town's only fiduciary fund is the custodial fund, which account for assets held by the Town as an agent for individuals, other governments and non-public organizations.

Fund Type Description
1999 Woodside Road/Whiskey Hill Road
Parking District
This fund accounts for the payment of principal,
interest, and administrative costs associated with
the 1999 issuance of limited obligation
improvement bonds for the construction of
parking assessment district in Town Center,
supported by special assessments against
properties within the district.

Item B Page 60 Town Council Meeting March 28, 2023
Custodial Fund
1999 Woodside
Road/Whiskey Hill
Road Parking District
Cash and investments 107,921 $
Receivables:

Interest 133
Special assessments 115,000
Total assets 223,054
Restricted for Parking District 223,054
Total Net Position $ 223,054
See accompanying notes to financial statements
NET POSITION:

Town of Woodside
Statement of Net Position
Fiduciary Funds
June 30, 2022
ASSETS
Item B Page 61 Town Council Meeting March 28, 2023
Custodial Fund
1999 Woodside
Road/Whiskey Hill Road
Parking District
Members contributions 3,500 $
Investment earnings 70
Total Additions 3,570
Debt services payments 39,812
Total Deductions 39,812
Net increase(decrease)
in fiduciary net position (36,242)
Net Position - Beginning of the Year 259,296
$ 223,054
See accompanying notes to financial statements
Net Position - End of the Year
Town of Woodside
Statement of Changes in Net Position
Fiduciary Funds
For the Year Ended June 30, 2022

ADDITIONS

DEDUCTIONS
Item B Page 62 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 63 Town Council Meeting March 28, 2023

NOTES TO BASIC FINANCIAL STATEMENTS
Item B Page 64 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 65 Town Council Meeting March 28, 2023
Town of Woodside
Basic Financial Statements
For the year ended June 30, 2022
Index to Notes to Basic Financial Statement
Page
Note 1 – Summary of Significant Accounting Policies ................................................................... 55 Financial Reporting Entity .......................................................................................................... 55 Basis of Presentation .................................................................................................................... 56 Measurement Focus ..................................................................................................................... 58 Basis of Accounting ..................................................................................................................... 58 Assets, Liabilities, and Equity ..................................................................................................... 59 Revenues, Expenditures, and Expenses ......................................................................................... 63 Budgetary Accounting ............................................................................................................ 64 Note 2 – Cash and Investments ......................................................................................................... 65 Note 3 – Accounts Receivable .......................................................................................................... 69 Note 4 – Capital Assets ..................................................................................................................... 70 Note 5 – Accounts Payable and Accrued Liabilities ....................................................................... 71 Note 6 – Long-term Liabilities .......................................................................................................... 71 Note 7 – Net Position/ Fund Balances ....................................................................................... 72 Note 8 – Interfund Transactions ...................................................................................................... 75 Note 9 – Risk Management ............................................................................................................... 75 Note 10 – Public Employees’ Retirement System ........................................................................... 76 Note 11 – Other Post-Employment Benefits (OPEB) ..................................................................... 82 Note 12 – Commitments and Contingencies .................................................................................... 86 Note 13 – Joint Powers Agreement ........................................................................................... 86 Note 14 – New Accounting Pronouncements ........................................................................... 86 Item B Page 66 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 67 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Woodside (Town) was incorporated on November 16, 1956, under the laws and regulations of the State of California (State). The Town operates under a Town Council/Manager form of government and provides the following services: public works, planning and zoning, building regulation, general administrative services, and public safety (provided by San Mateo County Sheriff).

The financial statements of the Town have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. On June 15, 1987, GASB issued a codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The Town applies all GASB pronouncements to its activities.

In addition, the Town applies all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) issued after November 30, 1989, unless they conflict with or contradict GASB pronouncements. The more significant of these accounting policies are described below and, where appropriate, subsequent pronouncements will be referenced.

Financial Reporting Entity
The Town operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. The Town's main funding sources include property taxes, other intergovernmental revenue from state and federal sources, user fees, and sales taxes.

The financial reporting entity consists of (a) the primary government, the Town, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit's board, and either (a) the Town has the ability to impose its will on the organization, or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the Town.

There are no component units of the Town that meet the criteria for discrete presentation.

Item B Page 68 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Presentation
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided by a given function or segment, 2) operating grants and contributions, and 3) capital grants and contributions restricted to the operating or capital requirements of a specific function or segment.

All taxes and internally dedicated resources are reported as general revenues rather than program revenues.

Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-- balancing accounts, which constitute its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the Town or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental fund are at least ten percent of the corresponding total for all funds of that category or type; and, b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund are at least five percent of the corresponding total for all governmental funds combined.

The Town reports the following major funds:
• General Fund
• Library Operations Special Revenue Fund
• Measure A Special Revenue Fund
• Capital Projects Fund
Descriptions of these funds are included on the divider page preceding the Governmental Funds Balance Sheet.

Item B Page 69 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Presentation, Continued
The funds of the financial reporting entity are described below:

Governmental Funds
General Fund
The General Fund is used to account for resources traditionally associated with the Town which are not required legally or by sound financial management to be accounted for in another fund. From this fund are paid the Town's general operating expenditures, the fixed charges, and the capital costs that are not paid through other funds.

Special Revenue Funds
The Special Revenue Funds are used to account for specific revenues that are legally or otherwise restricted, or committed to expenditures for particular purposes.

Capital Projects Fund
The Capital Projects Fund accounts for multi-year capital improvement projects including bridges, road repair/replacement and trail and pedestrian improvements.

Proprietary Funds
Enterprise Funds
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. Costs are financed or recovered primarily through user charges.

Fiduciary Funds
Custodial Funds
Custodial Funds account for assets held by the Town in a purely custodial capacity. Since custodial funds are custodial in nature, they do not involve the measurement of results of operations and are not presented in the government-wide financial statements. The town has only one custodial fund, which accounts for the payment of principal, interest, and administrative costs associated with the 1999 issuance of limited obligation improvement bonds for the construction of parking assessment district in Town Center, supported by special assessments against properties within the district.

Item B Page 70 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Presentation, Continued
Measurement Focus
Measurement focus is a term used to describe which transactions are recorded within the various financial statements.

On the government-wide Statement of Net Position and the Statement of Activities, governmental and business-type activities are presented using the economic resources measurement focus. The accounting objectives of this measurement focus are the determination of net income, financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported.

Fund equity is classified as Net Position, which serves as an indicator of financial position.

In the fund financial statements, the "current financial resources" measurement focus is used for governmental funds. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

The enterprise funds utilize an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of net income, financial position, and cash flows. Enterprise fund equity is classified as net position.

Custodial funds are not involved in the measurement of results of operations; therefore, measurement focus is not applicable to them.

Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, governmental and businesstype activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred, or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchangelike transactions are recognized when the exchange takes place.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year.

All other revenue items are considered to be measurable and available only when cash is received by the government. Expenditures (including capital outlay) are recorded when the related fund liability is incurred.

The enterprise funds and custodial funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred, or economic asset used. Operating revenues in the fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

Item B Page 71 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Assets, Liabilities, and Equity
Cash Deposits and Investments
The Town's cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturities of three months or less from the date of acquisition.

Fair Value Measurements
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 Town 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.

Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include property taxes, sales and use taxes, intergovernmental subventions, interest earnings, and expense reimbursements.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as property tax, sales tax, and intergovernmental subventions since they are usually both measurable and available. Non-exchange transactions collectible but not available, such as property tax, are deferred inflows in the fund financial statements in accordance with the modified accrual basis, but not deferred inflows in the government-wide financial statements in accordance with the accrual basis.

Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. The Town's experience is that all accounts receivables are collectible; therefore, an allowance for doubtful accounts is unnecessary.

Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. In the governmental fund financial statements, prepaid items are offset with a nonspendable fund balance for long-term assets to indicate they do not constitute current resources available for appropriation.

Item B Page 72 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Capital Assets
The Town's assets are capitalized at historical cost or estimated historical cost, if actual is unavailable, except for donated Capital Assets which are recorded at their estimated fair value at the date of donation.

Policy has set the capitalization threshold for reporting at $5,000 for non-infrastructure capital assets and $25,000 for infrastructure capital assets.

Government-Wide Statements
Public domain (infrastructure) capital assets include roads, bridges, streets, drainage systems, and pumps.

The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

Prior to July 1, 2003, governmental funds' infrastructure assets were not capitalized. Since then, these assets have been valued at estimated historical cost.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation.

The range of estimated useful lives by type of asset is as follows:

Buildings 50 years
Building improvements 10-20 years
Machinery and equipment 5-20 years
Sewer Pump & Collection Systems 30 years
Leases
As clarified by the Government Accounting Standards Board (GASB) Statement No. 87, 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 Town recognizes lease receivables or liabilities with an initial, individual value of $50,000 or more, based on the future lease payments remaining at the start of the lease.

The Town has no leases subject to GASB#87 for the fiscal year 2022.

Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in government-wide statements.

Item B Page 73 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Compensated Absences
Employees accrue personal leave, holiday, administrative leave, and compensatory time off benefits. Town employees have vested interests in the amount of accrued time off and are paid on termination. All personal leave pay is accrued when incurred in the government-wide and proprietary financial statements. A liability for the entire amount is reported in the governmental activities. The general fund is typically used to liquidate compensated absences.

In order to control this future liability, starting in 2013, compensatory time off, administrative leave, and floating holidays must be used by staff during the calendar year in which they are earned. At year-end, employees will be paid for any comp time, administrative leave, or floating holidays earned, but not used during the year. No comp time, administrative leave, or floating holidays earned may be carried into a new calendar year. Conversely, PTO (paid time off) rolls from one calendar year to the next until it is used or paid out to staff who leave the service of the Town of Woodside.

Unearned Revenues
Unearned revenues in governmental funds arise when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues in enterprise funds and the statement of net position arise when resources are received by the Town before it has legal claim to them, (i.e., when grant monies are received prior to the incurrence of qualifying expenses).

Deferred outflows/inflows of resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town has one item reported as a deferred outflow of resources. The item is a deferred charge on pension plan contributions in the government-wide statement of net position.

In addition to liabilities, the statement of position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Town has one item reported as a deferred inflow of resources. The item is the net difference between projected and actual earnings on pension plan investments and is reported in the government-wide statement of net position.

Refer to Notes 10 and 11 for more information on pension and OPEB benefit plans.

Item B Page 74 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Equity Classification
Government-Wide Statements
Equity is classified as net position and is displayed in three components:
a. Net investment in capital assets – consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position – consists of net position with constraints placed on the use by external groups such as creditors, grantors, contributors, or by laws or regulations of other governments or law through constitutional provisions or enabling legislation. c. Unrestricted net position – all other net position that do not meet the definition of "restricted" or "net investment in capital assets."
Fund Financial Statements
Governmental fund equity is classified as fund balance. Fund balance is classified as nonspendable, restricted, committed, assigned, or unassigned. Proprietary fund equity is classified the same as in the government-wide statements. The classifications for governmental funds are defined as follows for the Town:

Nonspendable Fund Balance –
• Assets that will never convert to cash (prepaid items, inventory). • Assets that will not convert to cash soon enough to affect the current period (long-term notes or loans receivable).
• Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment).

Restricted Fund Balance –
• Resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government (creditors, grantors, contributors and other governments). • Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (e.g., Gas Tax).

Committed Fund Balance –
• Self-imposed limitations set in place prior to the end of the period (encumbrances, economic contingencies and uncertainties).
• Limitation at the highest level of decision-making (Council) that requires formal action at the same level to remove.
• Council Resolution is required to be taken to establish, modify, or rescind a fund balance commitment.

Item B Page 75 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Assigned Fund Balance –
• Amounts in excess of nonspendable, restricted and committed fund balance in funds other than the general fund automatically are reported as assigned fund balance. • The Town Council delegates the authority to the Town Manager to assign fund balance amounts to specific purposes when such purposes are enacted by the Town Council.

Unassigned Fund Balance –
• Residual net resources.
• Total fund balance in the general fund in excess of nonspendable, restricted, committed and assigned fund balance (surplus).
• Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit).

Revenues, Expenditures, and Expenses
Property Tax
The County of San Mateo (County) is responsible for the collection and allocation of property taxes. Under California law, property taxes are assessed and collected by the County up to 1% of the full cash value of taxable property, plus other increases approved by the voters and distributed in accordance with statutory formulas. The Town recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year-end.

Secured property taxes are levied on or before the first day of September of each year. They become a lien on real property on March 1 preceding the fiscal year for which taxes are levied. These taxes are paid in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, cost, and interest when paid. If the delinquent taxes are not paid at the end of five years, the property is sold at public auction and the proceeds are used to pay the delinquent amounts due. Any excess is remitted, if claimed, to the taxpayer. Additional tax liens are created when there is a change in ownership of property or upon completion of new construction. Tax bills for these new tax liens are issued throughout the fiscal year and contain various payments and delinquent dates, but are generally due within one year. If the new tax liens are lower, the taxpayer receives a tax refund rather than a tax bill. Unsecured personal property taxes are not a lien against real property. These taxes are due on March 1, and become delinquent, if unpaid on August 31.

The Town participates in an alternative method of distribution of property tax levies and assessments known as the "Teeter Plan." The State Revenue and Taxation Code allow counties to distribute secured real property, assessment, and supplemental property taxes on an accrual basis resulting in full payment to cities each fiscal year. Any subsequent delinquent payments and penalties and interest during a fiscal year will revert to San Mateo County.

Item B Page 76 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Interfund Transfers
Resources are reallocated between funds by reporting them as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated.

Budgetary Accounting
The Town Council establishes budgets for the General Fund and all Special Revenue Funds. Budgetary control is legally maintained at the fund level for these funds. Department heads submit budget requests to the Town Manager. The Town Manager prepares an estimate of revenues and prepares recommendations for the next year's budget. The preliminary budget may or may not be amended by the Town Council and is adopted by resolution by the Town Council on or before June 30 in accordance with the municipal code.

The Town Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The Town Manager is authorized to transfer budgeted amounts within a fund without formal council action or approval.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. There were no material supplemental appropriations made for the fiscal year ended June 30, 2022. Budget information is presented for the General and budgeted Special Revenue Funds in the fund financial statements. The budget information is presented on a basis consistent with generally accepted accounting principles. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could differ from those estimates.

Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Authority's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Fiscal Year End June 30, 2022
Item B Page 77 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

2. CASH AND INVESTMENTS
Investments Authorized:

The Town’s Investment Policy and the California Government Code allow the Town to invest in the following, provided the credit ratings of the issuers are acceptable to the Town, and approved percentages and maturities are not exceeded:

Authorized Investment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment In
One Issuer
California Local Agency Investment Fund N/A None $50 million US Government Agency Issues N/A 80% None
Negotiable Certificates of Deposits N/A 30% None
Mutual funds Upon Demand 20% 10%
At June 30, 2022, the Town's pooled cash and investments, classified by maturity, consisted of the following stated at fair value:

Fair Value
Cash and investments:

Pooled cash, at fair value
Cash in bank 520,390 $
Petty Cash 600
Total cash in hand 520,990
State of California Local Agency Investment Fund (LAIF) 9,101,774 Subtotal cash and investments 9,622,764
Restricted cash and investments
PARS Trust Pension Investment Fund 2,157,749
Subtotal restricted cash and investments 2,157,749
Total Cash and Investments $ 11,780,513
Amounts reported in:

Governmental activities $ 10,739,349
Business-type activities 933,243
Fiduciary activities 107,921
Total Cash and Investments $ 11,780,513
Item B Page 78 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
Investment in California State Local Agency Investment Fund (LAIF):

The LAIF is a special fund of the California State Treasury through which local governments can pool investment funds. The Local Investment Advisory Board has oversight responsibility for the LAIF and the Board consists of five members as designated by State statute. LAIF is stated at amortized cost, which approximates fair value.

As of June 30, 2022, the total fair value amount invested by all public agencies in LAIF is $234.5 million, with the Town's pro-rata share of the fair value investment amount is $9.1 million.

As of June 30, 2022, the reported LAIF portfolio investment allocation is as follows; 0.35% is in loans,

0.21% in corporate bonds, 4.91% in commercial paper, 1.90% in time deposits, 5.71% in certificates of deposits and bank notes, 18.90% in government agencies and 68.02% in U.S. Treasuries. At June 30, 2022, the average investment maturity for the LAIF is 311 days, with an average annual investment yield of

0.37%.

In fiscal year 2022, the Town earned $31,990 in income from its’ investments in the LAIF, with the quarterly annual yields ranging from a low of 0.24% in the first quarter to a high of 0.75% in the fourth quarter of fiscal 2022. The investment in the LAIF is subject to market risk due to interest rate changes, credit risks and overall market price fluctuations.

Public Agency Retirement Services (PARS) Trust Pension Investment Fund:

In fiscal year 2020, the Town Council elected to participate in the Public Agency Retirement Services (PARS) pension rate stabilization program, an IRC Section 115 irrevocable trust to set aside money to prefund rising pension costs and address pension obligations. PARS is a non-governmental organization that offers retirement services designed for public agencies, primarily in the State of California.

Participating government agencies maintain oversight of investment management and control over the risk tolerance level of the portfolio. Assets held in the PARS Trust allow for greater investment flexibility and risk diversification compared to a government agencies general fund investments. The Town Council elected to invest money through the PARS Trust, in partnership with High Mark Capital Management in High Mark Capitals Capital Appreciation Portfolio Index Plus Fund. High Mark Capital Management, Inc., is an SEC registered investment adviser and a wholly-owned subsidiary of Union Bank and manages institutional separate account portfolios for a wide range of for-profit and nonprofit organizations. The High Mark Capital Appreciation Portfolio Index Plus Fund is a fund of diversified funds designed to balance return expectations with risk tolerance with a primary objective being growth of principal. Key features include sophisticated asset allocation and optimization (asset classes, style manager and security). The target asset allocations for this Fund are as follows:

Asset Allocation-Capital Appreciation Portfolio Index Plus Fund Strategic Range
Equity 65-85%
Fixed Income 10-30%
Cash 0-20%
Item B Page 79 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
At June 30, 2022, the Town’s $2.1 million PARS Investment (High Mark Capital Appreciation Index Plus) asset allocation was $1.5 million or 70.2% in equity securities (i.e. international and domestic large cap, mid and small cap companies), $427K or 19.9% in fixed income securities (i.e. intermediate and short term bonds), $50K or 2% in real assets and $170K or 7.92% in cash equivalents.

Equity and fixed income securities held in the PARS Investment account are measured at fair value (i.e. market value) at the end of each fiscal period with any net increase or decrease recorded in current period income along with any realized net gains or losses. During fiscal year 2022 the PARS Investment had a net decline in market value which resulted in a net loss of $331,344, or 12.78%. By comparison, in fiscal year 2021 the PARS Investment had a net increase in market value which resulted in a net gain of $558,087.

As of June 30. 2022 the fair value of the PARS Investment related to the pension plan was approximately $2.1 million, which represents approximately 90% of the Town's estimated unfunded pension liability as of June 30, 2022. Please note that the net pension liability is determined by an outside actuary and is based on various assumptions including projected plan asset earnings. These amounts could differ from actual earnings in future periods, which could impact the future pension liability for the Town.

The Town Council reserves the authority to review and amend this funding policy from time to time, in order to ensure that the funding policy continues to best suit the circumstances and objectives of the Town.

Interest Rate Risk and Market Risks
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 will be. The Town’s investments in the LAIF are heavily weighted toward interest rate financial instruments and to a much lesser extent the PARS Trust Pension Investment Fund, which are primarily invested in equities.

The Town’s investments in the LAIF and the PARS Trust Pension Fund are also subject to market risk.

Market risk is the risk of losses on financial investments caused by adverse price movements caused by changes in equity prices, credit risks, foreign exchange fluctuations or interest rate changes. Our investment in the PARS Trust Pension Investment (High Mark Capital Appreciation Index Plus) Fund is subject to market risk due to changes in interest rates, credit risk, foreign currency prices and overall market price fluctuations. Investments employing High Mark strategies are not insured by the FDIC or any Federal or State government agency and may lose value including loss of principal.

Information on the fair values of the Town’s investments at June 30, 2022, is provided by the following table:
12 months or less
State of California Local Agency Investment Fund (LAIF) 9,101,774 $ (a) PARS Trust Pension Investment Fund 2,157,749 (b)
Total investments $ 11,259,523
(a) At June 30, 2022, the average investment maturity for the LAIF is 311 days, or approximately 10.2 months.
(b) At June 30, 2022, $438,023 was invested in fixed income securities, the maturity of which is unknown.

Item B Page 80 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
Credit Risk
Credit Risk is the risk that an issuer 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. The Town’s investments in both LAIF and the PARS Trusts are all pooled investments and not rated:

Not Rated
State of California Local Agency Investment Fund 9,101,774 $ PARS Trust Pension Investment Fund 2,157,749
Total investments 11,259,523 $
California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 - Financial Affairs. The only authorized investment vehicles that address interest rate risk, credit risk, and concentration of credit risk, per the Town's investment policy, are the State of California Local Agency Investment Fund (LAIF), certificates of deposit in California financial institutions, government agency issues and money market mutual funds.

Interest Rate Interest Earned Yield To Date
First Quarter (7/1 - 9/30) 0.24% $ 5,398 $ 5,398
Second Quarter (10/1 - 12/31) 0.23% 3,927 9,325
Third Quarter (1/1 - 3/31) 0.32% 5,834 15,159
Fourth Quarter (4/1 - 6/30) 0.75% 16,831 31,990
Concentration of credit risk
The investments made by the Town Treasurer are limited to those allowable under State statutes as incorporated into the Town's Investment Policy, which is accepted annually by the Town Council.

Following the statutes, the Town's investment policy does not allow for an investment in any one issuer that is in excess of five percent of the government's total investments, other than U. S. Treasury securities, mutual funds and the California Local Agency Investment Fund (LAIF). As of June 30, 2022, there were no concentrations in any one issuer for the year in excess of five percent of the Town’s total investment.

The Town participates in an investment pool managed by the State of California known as the Local Agency Investment Fund (LAIF). LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. Our investment in PARS Trust Pension Investment Fund are not insured by the FDIC or any Federal or State government agency or collateralized by the State of California,
Item B Page 81 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
Custodial credit risk (Deposits and Investments)
For deposits, this is the risk that in the event of a bank failure, the Town's deposits may not be returned to it. The Town's Investment Policy addresses custodial credit risk, which follows the Government Code. At June 30, 2022, the Town had balances in the financial institutions of $696,962, with a book balance of cash in bank of $520,390. Of the balance in the financial institutions, the amount within $250,000 was covered by federal depository insurance. The portion exceeding the federal depository insurance of $250,000 coverage was collateralized as required by State law (Government Code Section 53630), by the pledging financial institution with assets held in a common pool for the Town and other governmental agencies, but not in the name of the Town.

For investments, this is the risk that, in the event of the failure of the counterparty, the Town will not be able to recover the value of its investments or collateral securities that are in the possession of an outside counterparty. For the investments maintained by the Town, no security was uninsured or unregistered or held by a brokerage firm which is also the counterparty for the security. Investments were held by the custodial agent and were insured up to specified limits by the Securities Investor Protection Corporation (SPIC) and supplemental private insurance up to a limit of $150 million.

3. ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2022:

Governmental Business-type Fiduciary
Activities(SNP) Activities Activities Total
Accounts 191,878 $ 7,372 $ - $ 199,250 $
Interest 15,232 1,544 133 16,909
Intergovernmental 61,692 - - 61,692
Taxes 804,159 - - 804,159
Other 18,986 - 115,000 133,986
Total accounts receivable 1,091,947 $ 8,916 $ 115,133 $ 1,215,996 $ These amounts resulted in the following concentrations in receivables:

Other Governments 82.2%
Individuals / Businesses 16.4%
Financial 1.4%
Amounts do not indicate a significant concentration (greater than 25%) with any single individual, business, or agency.

Item B Page 82 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

4. CAPITAL ASSETS
Capital asset of Governmental activities for the year ended June 30, 2022, was as follows:

Balance Deletions/ Balance
June 30, 2021 Additions Adjustments June 30, 2022
Governmental Activities
Capital assets not being depreciated:

Land $ 9,468,373 $ - $ 9,468,373 - $
Total capital assets not being depreciated 9,468,373 - 9,468,373 - Capital assets being depreciated:

Buildings and improvements 9,972,505 108,826 10,081,331 - Machinery and equipment 1,011,764 190,648 (52,748) 1,149,664 Total capital assets being depreciated 10,984,269 299,474 (52,748) 11,230,995 Less accumulated depreciation for:

Buildings and improvements (2,965,680) (215,473) (3,181,153) - Machinery and equipment (789,783) (24,843) 52,748 (761,878) Total accumulated depreciation (3,755,463) (240,316) 52,748 (3,943,031) Total depreciable assets, net 7,228,806 59,158 7,287,964 - Capital assets, net $ 16,697,179 $ 59,158 $ 16,756,337 - $ Capital asset of Business type activities for the year ended June 30, 2022, was as follows:

Balance Balance
June 30, 2021 Additions June 30, 2022
Business-type Activities
Capital assets being depreciated:

Buildings and improvements $ 141,706 $ - $ 141,706
Pumps and collections system 4,030,667 - 4,030,667
Total capital assets being depreciated 4,172,373 - 4,172,373 Less accumulated depreciation for:

Buildings and improvements (141,706) - (141,706)
Pumps and collections system (2,674,555) (59,483) (2,734,038) Total accumulated depreciation (2,816,261) (59,483) (2,875,744) Total depreciable assets, net 1,356,112 (59,483) 1,296,629 Capital assets, net $ 1,356,112 $ (59,483) $ 1,296,629
Item B Page 83 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

4. CAPITAL ASSETS, Continued
Depreciation expense for capital assets was charged to functions as follows:

Governmental Activities
Planning Department 1,167 $
Buildings and Grounds 65,013
Town-wide Overhead 8,940
Safety Services 2,707
Barkley Fields 91,819
Library Services 58,640
Public Works 12,030
Total Governmental Activities $ 240,316
Business-type Activities
Town center pump sewer $ 43,473
Canada Corridor sewer 16,010
Total Business-type Activities $ 59,483

5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities consisted of the following at June 30, 2022:

Governmental Business-type
Activities Activities Total
Accounts payable and accrued liabilities $ 385,352 $ 27,630 $ 412,982 Deposits payable 708,212 - 708,212
Total $ 1,093,564 $ 27,630 $ 1,121,194
Amounts do not indicate a significant concentration (greater than 25%) with any single vendor or individual.

6. LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2022:

Balance Balance Due Within
7/1/2021 Net Change 6/30/2022 One year
Compensated Absences $ 525,635 $ (46,892) $ 478,743 $ 47,874 Net OPEB Liability 1,105,763 (482,117) 623,646 -
Net Pension Liability 4,135,509 (1,739,832) 2,395,677 - Total noncurrent liabilities $ 5,766,907 $ (2,268,841) $ 3,498,066 $ 47,874 Item B Page 84 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

6. LONG-TERM LIABILITIES, Continued
Compensated Absences
The Town's long-term liabilities consist of amounts due to employees for earned but unused compensated absences, including personal leave and compensated time off leave balances. These amounts are typically liquidated by the General Fund.

Net OPEB Liability
A net OPEB obligation is the cumulative differences between annual OPEB cost and an employer's contributions to a plan. See Note 11 for further discussion on OPEB.

Net Pension Liability
A net pension liability is the Town's actuarial determined projection of the Town's long-term share of the two CalPERS pools the Town belongs to. See Note 10 for further discussion on the net pension liability.

7. NET POSITION/ FUND BALANCES
Net Position
Governmental Business-type
Activities Activities
Net investment in capital assets $ 16,756,337 $ 1,296,629 Restricted 3,263,671 -
Unrestricted 2,937,304 439,213
Total $ 22,957,312 $ 1,735,842
• Restricted balances are for the same purposes as fund balance restrictions because external restriction requirements are the same. See descriptions of the restrictions below.

Item B Page 85 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

7. NET POSITION/ FUND BALANCES, Continued
Fund Balance
Restricted and Unassigned fund balance consisted of the following at June 30, 2022:

Nonspendable:

Major funds
General Fund $ 351,209
Total Nonspendable: $ 351,209
Restricted:

Major Funds:

General Fund $ 2,157,749
Measure A 663,187
Total Major Funds-Restricted 2,820,936
Nonmajor Funds:

Traffic Safety 221,984
Road Impact Fees 388,254
Gas Tax 53,258
Supplemental Law Enforcement Service 57,363
California Law Enforcement Equipment Program 2,806
Measure W 68,806
Total Nonmajor Funds-Restricted 792,471
Total Restricted $ 3,613,407
Unassigned (deficit):

Major Funds:

General Fund $ 7,474,061
Library Operations (1,752)
Capital Projects (347,984)
Total Major Funds-Unassigned 7,124,325
Total Fund Balance $ 11,088,941
The following describes the purpose of each nonspendable, restriction, and commitment account used by the Town:

Restricted
• Measure A – represents amounts restricted for the Town's share of a one-half cent sales tax revenue for road repairs and construction.
• Traffic Safety – represents amounts restricted for receipts from fines and forfeitures from violations of the California Vehicle Code, for support of the Town's Road Program.

Item B Page 86 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

7. NET POSITION/ FUND BALANCES, Continued
• Road Impact Fees – represents amounts restricted for receipts of road impact fees, assessed against all building projects, for road maintenance.
• Gas Tax – represents amounts restricted for road maintenance and construction purposes by the California Streets and Highways Code.
• California Law Enforcement Equipment Program – represents amounts restricted for State of California grants funds for law enforcement equipment acquisitions. • Measure W – represents amounts restricted for the Town’s share of a one-half cent sales tax revenue for road repairs and construction.

Deficit fund balances consisted of the following at June 30, 2022:

Library Operations – ($1,752) – This fund represents revenues and expenditures derived from the Town's membership in the San Mateo County Library System Joint Powers Authority (JPA).

Capital Projects – ($265,825) – This fund represents all the expenses for budgeted capital projects. Transfers in are made on a quarterly basis for the purpose of bringing the fund balance close to zero.

Item B Page 87 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

8. INTERFUND TRANSACTIONS
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

Transfers consisted of the following at June 30, 2022:

Transfer In Transfer Out
Governmental Activities
Major Funds:

General Fund 375,000 $ 2,415,414 $
Library Operations - 26,500
Measure A - 149,202
Capital Projects 2,996,733 -
Total Major Funds 3,371,733 2,591,116
Non-major Funds:

Special Revenue Funds:

Road Impact Fees - 457,371
Measure W - 110,746
Gas Tax - 154,000
Total Non-major Special Revenue Funds - 722,117
Total Non-major Funds - 722,117
Total Governmental Activities 3,371,733 3,313,233
Business-type Activities
Sewer Utility - 55,000
Canada Corridor Sewer - 3,500
Total Business-type Activities - 58,500
Total Transfers $ 3,371,733 $ 3,371,733

9. RISK MANAGEMENT
The Town of Woodside, is a member of Pooled Liability Assurance Network Joint Powers Authority (PLAN), for general liability claims in an amount of up to $2,500,000. Through PLAN JPA, the Town has additional insurance coverage from Old Republic, Peleus Insurance Company, QBE Specialty Insurance Company, Gemini Insurance Company, Hallmark Specialty Insurance Company, and Arch Insurance Company. The Town pays an annual premium to PLAN JPA for its insurance coverage.

Item B Page 88 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

9. RISK MANAGEMENT, Continued
The Town's insurance coverage and the respective coverage providers are as follows:

Amount Coverage Provider Payment Source
General Liability:
up to $25,000 Self-Insured retention Town Funds
$25,001-$1,000,000 PLAN JPA Shared risk pool
$1,000,001-$10,000,000 California Affiliated Risk Management Authorities (CARMA) JPA Alliant Insurance Services
$10,000,001-$15,000,000 Safety National Alliant Insurance Services $15,000,001-$20,000,000 Everest Alliant Insurance Services $20,000,001-$25,000,000 Hallmark Specialty Insurance Company Alliant Insurance Services $25,000,001-$30,000,000 Allied World National Assurance Company Alliant Insurance Services Workers' Compensation Claims
(up to $1,000,000)
State Compensation Insurance Fund
(Effective 7 1 2022 SHARP JPA took over
Workers Comp claims)
State Compensation Insurance Fund
Property insured includes: all buildings, structures, vehicles, personal property, data processing equipment, contractors’ equipment, records, business interruption, and errors and omissions. Property limits of liability $1,000,000 per occurrence. Deductibles are $5,000 all property and vehicles, cyber liability included.

Employment Risk Management Authority (ERMA) is a self-insured joint powers authority created for the sole purpose of Employment Practices Liability Coverage. ERMA is comprised of various public entities who risk share up to $1 million against potential unlawful employment practices and discrimination claims.

10. PUBLIC EMPLOYEES' RETIREMENT SYSTEM
General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the Town's Miscellaneous and Public Employees' Pension Reform Act (PEPRA) Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established by State statute and Town 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.

Item B Page 89 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

10. PUBLIC EMPLOYEES' RETIREMENT SYSTEM, Continued
The Plans' provisions and benefits in effect at June 30, 2022, are summarized as follows:

Miscellaneous
Classic PEPRA
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 67 52 - 67
Monthly benefits, as a % of eligible compensation 2.0 - 2.5% 1.0 - 2.5% Required employee contribution rates 8.0% 6.75%
Required employer contribution rates 12.200% 7.590%
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 CaIPERS. 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 Town is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, the contributions recognized as part of pension expense for each Plan were as follows:

Miscellaneous
Contributions - employer $ 590,923
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, the Town reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share
of Net Pension Liability
Miscellaneous $ 2,395,677
Total Net Pension Liability $ 2,395,677
Item B Page 90 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

10. PUBLIC EMPLOYEES' RETIREMENT SYSTEM, Continued
The Town's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2020, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The Town's proportion of the net pension liability was based on a projection of the Town's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The Town's proportionate share of the net pension liability for each Plan as of June 30, 2019 and 2020 was as follows:

Miscellaneous
Proportion - June 30, 2020 0.03801%
Proportion - June 30, 2021 0.04430%
Change - Increase (Decrease) 0.00629%
For the year ended June 30, 2022, the Town recognized pension expense of $941,663. At June 30, 2022, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 590,923 $ $ - Differences between actual and expected experience 268,649 - Changes in assumptions
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions - (57,586)
Change in employer proportion 46,894 (13,088)
Net differences between projected and actual earnings
on plan investments - (2,091,299)
Total $ 906,466 $ (2,161,973)
Item B Page 91 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

10. PUBLIC EMPLOYEES' RETIREMENT SYSTEM, Continued
$590,923 reported as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as a credit or a reduction to pension expense as follows:

Fiscal Year Ended Annual
June 30 Amortization
2023 $ (383,145)
2024 (414,863)
2025 (470,494)
2026 (577,928)
Total $ (1,846,430)
Miscellaneous
Actuarial Assumptions – The total pension liability was determined by rolling forward the total pension liability determined in the June 30, 2020, actuarial accounting valuation to June 30, 2021. The June 30, 2020, total pension liability was based on the following actuarial methods and assumptions:

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68 Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Payroll Growth Varies by Entry Age and Service
Investment Rate of Return 7.15% (1)
Mortality Rate Table Derived using CalPERS' membership data for all funds (2) Post Retirement Benefit Increase Contract COLA up to 2.50% until Purchasing Power Protection Allowance floor on Purchasing Power applies
(1) Net of pension plan investment expenses, including inflation (2) The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of Scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuations were based on the results of December 2017 actuarial experience study for the period from 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website.

Item B Page 92 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

10. PUBLIC EMPLOYEES' RETIREMENT SYSTEM, Continued
Discount Rate – The discount rate used to measure the total pension liability for the Plan was 7.15%. The projection of cash flows used to determine the discount rate for the 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, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members, Therefore, the long-term expected rate of return on investments was applied to all period of projected benefit payments to determine the total pension liability.

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

The table below reflects the expected real rates of return by asset class by CalPERS.

For Miscellaneous and PEPRA
Asset Class (a)
Assumed
Asset Allocation
Real Return
Years 1 - 10(b)
Real Return
Years 11+(c)
Public Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Estate 13.0% 3.75% 4.93%
Liquidity 1.0% -0.92%
Total 100%
(a) In the CalPERS Annual Comprehensive Financial Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) An expected inflation of 2.00% used for this period. (c) An expected inflation of 2.92% used for this period.

Item B Page 93 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

10. PUBLIC EMPLOYEES' RETIREMENT SYSTEM, Continued
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Town's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the Town's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous
1% Decrease 6.15%
Net Pension Liability 4,620,414 $
Current Discount Rate 7.15%
Net Pension Liability 2,395,677 $
1% Increase 8.15%
Net Pension Liability 556,520 $
Pension Plan Fiduciary Net Position – Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

PARS Trust – During fiscal year 2020, the Town established an irrevocable trust with Public Agency Retirement Services (PARS) to set aside funds for pension liability. The Council reserves the authority to review and amend this funding policy from time to time, in order to ensure that the funding policy continues to best suit the circumstances of the Town. Refer to Note 2, Cash and Investments for more details on the PARS Trust Investment.

As of June 30, 2022, the balance in the PARS trust is $2,157,749.

Due to the interpretation of GASB 68 for the treatment of the secondary trust other than CERBT when Town has pension managed by CalPERS, the PARS trust balance is shown as restricted cash in General Fund, the contributing Fund.

Item B Page 94 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

11. OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description. The Town of Woodside Retiree Healthcare Plan (Plan) is an agent multiple employers defined benefit healthcare plan administered by the Town. The Plan provides access to lifetime healthcare benefits to eligible retirees and their dependents. The Town provides retiree medical benefits through the California Public Employees' Retirement System healthcare program (PEMHCA). For eligible retirees and actives, the Town pays full employee premiums.

Commencing with fiscal year 2011, the Town participated in the California Employers' Retiree Benefit Trust (CERBT) Fund, which is administered by CalPERS. CERBT is a tax-qualified irrevocable trust organized under Internal Revenue Code Section 115 and established to prefund retiree healthcare benefits.

In fiscal year 2020, the Town closed CERBT and transferred the trust balances to the newly established Section 115 irrevocable trust with Public Agency Retirement Services (PARS). The investment balance in the Town's PARS Trust Investment Account (OPEB ) as of June 30, 2022 was $1.1 million. The Town Council elected to invest money through the PARS Trust, in partnership High Mark Capital Management in High Mark Capitals Capital Appreciation Portfolio Index Plus Fund, the same funds as is used for the PARS Trust Investments for purposes of future pension obligations. See below and Note 2 on page 70 for more details of the Town's PARS Trust investments through High Mark Capital.

Eligibility: Employees are eligible to participate in the Town's Retiree Healthcare Plan if they retire directly from the Town under CalPERS with five years of PERS service (there is no minimum service requirement if retirement is due to a service-connected disability.) Since PEMHCA is a community rated plan for most employers, an implied subsidy is not reflected under GASB 45. The Town does not provide dental, vision, life, or Medicare Part B reimbursement to retirees. The Retiree Healthcare Plan does not issue a financial report.

Funding Policy
The contribution requirements of the Plan participants and the Town are established by and may be amended by the Town. The Town funds plan benefits by contributing at least 100% of the Annual Determined Contribution (ADC). For FY 2022, the Town made a total payment of $135,193 to the Plan, including $96,664 for pay-as-go portion of payments unreimbursed by the Trust.

Employees Covered by benefit terms
At June 30, 2022, the following employees were covered by the benefit terms:

Inactive Employees Receiving Benefits 12
Inactive Employees Entitled to But Not Receiving Benefits - Participating Active Employees 22
Total 34
Net OPEB Liability
The Town's net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 based on the following actuarial methods and assumptions:

Item B Page 95 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

11. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
Actuarial Assumptions
Discount Rate 6.25%
Inflation 2.26%
Salary Increases 3.25% per annum
Net Investment Rate of Return 6.25%
Mortality Rate Pre-Retirement: CalPERS 2017 Non-Safety Mortality pre-retirement Post-Retirement: CalPERS 2017 Non-Safety Mortality post-retirement Healthcare Trend Rate Pre-65: 7.05%
Post-65: 5.25%
The long-term expected rate of return on OPEB plan investments was determined by an independent actuary using a building block 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:

CERBT
Strategy 1 Rate of Return
Asset Class Component
Equity 73.00% 5.65%
Fixed income 20.00% 1.39%
REITS 2.00% 5.06%
Cash 5.00% 0.00%
Total 100.00%
The discount rate used by the independent actuary to measure the total OPEB liability was 6.25 percent.

The projection of cash flows used to determine the discount rate assumed that Town contributions will be made at rates equal to the 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.

Item B Page 96 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

11. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
Changes in the OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at June 30, 2021 $ 2,077,506 $ 971,743 $ 1,105,763 Changes Recognized for the Measurement Period:

Service cost 54,972 - 54,972
Interest 129,119 - 129,119
Differences between expected and actual experience (1,862) - (1,862) Changes of assumptions (248,829) - (248,829)
Contributions-Employer - 135,193 (135,193)
Net investment income - 283,084 (283,084)
Benefit payments (135,193) (135,193) -
Administrative expense - (2,760) 2,760
Net changes (201,793) 280,324 (482,117)
Balance at June 30, 2022 $ 1,875,713 $ 1,252,067 $ 623,646 (a) As of June 30, 2022, the Town has an investment balance of $1.1 million in its PARS Trust to prefund its future OPEB liability or obligation. As of June 30, 2022 approximately $1,252,067 is shown in this table as an offset or reduction to the Total OPEB Liability. The difference between the investment balance and reduction is due to a one year timing lag with the measurement date.

Refer to other comments in this section about the PARS investment and Note 2, Cash and Investments.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The discount rate used for the fiscal year end 2022 is 6.25%. The following presents the net OPEB liability of the Town if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021:

Total OPEB Liability/(Asset)
1% Decrease Current Rate 1% Increase
Change in Discount Rate 5.25% 6.25% 7.25%
Net OPEB Liability 875,539 $ $ 623,646 $ 415,724
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the Town if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021:

Total OPEB Liability/(Asset)
Change in Healthcare Cost Trend Rate 1% Decrease Current Trend 1% Increase Net OPEB Liability 391,777 $ $ 623,646 $ 909,476
Item B Page 97 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

11. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

Net difference between projected
and actual earnings on OPEB plan investments 4 Years
All other amounts
Expected average remaining service lifetime (EARSL) (6.26 Years at June 30, 2022)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2022, the Town recognized OPEB expense of $43,375, a decrease of $61,362 or 59% compared to $104,737 in the prior year. As of fiscal year ended June 30, 2022, the Town reported deferred outflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between actual and expected experience $ 78,977 $ 54,720 Changes of assumptions 196,816 410,252
Net difference between projected and actual earnings on plan investments - 166,319 Employer contributions made subsequent to the measurement date 126,498 - Total $ 402,291 $ 631,291
The $126,498 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as a credit or a reduction of OPEB expenses expense as follows:

Year Annual
Ended June 30 Amortization
2023 $ (79,780)
2024 (79,350)
2025 (81,133)
2026 (83,964)
2027 (18,609)
Thereafter (12,662)
Total $ (355,498)
Item B Page 98 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

12. COMMITMENTS AND CONTINGENCIES
The Town is a party to claims and lawsuits arising in the ordinary course of business. The Town's management and legal counsel are of the opinion that the ultimate liability, if any, arising from these claims will not have material adverse impact on the financial position of the Town. The Town participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the Town expects such amounts, if any, to be immaterial.

13. JOINT POWERS AGREEMENT
The town participates in the City/County Association of Governments of San Mateo County (C/CAG), which is governed by a board consisting of a representative from each member. The board controls the operations of C/CAG, including selection of management and approval of operating budgets, independent of any influence by each member beyond member representation of the Board.

C/CAG was established under a 1990 Joint Exercise of Powers Agreement between the Town, San Mateo County and a majority of cities within San Mateo County for the purpose of developing State mandated plans such as an integrated waste management plan. The Town makes annual nonrefundable contributions to C/CAG which is used along with other member contributions to finance C/CAG operations. Audited financial statements may be obtained from the City of San Carlos, 666 Elm Street, San Carlos, CA, 94070.

The Town's payments to C/CAG during the year totaled $1,942. The Town's share of year-end assets, liabilities, or fund equity has not been calculated by C/CAG.

14. NEW ACCOUNTING PRONOUNCEMENTS
GASB Statement No. 91 – Conduit Debt Obligation
The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement clarifies the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. This Statement also addresses arrangements -often characterized as leases - that are associated with conduit debt obligations.

This Statement is effective for reporting periods beginning after December 15, 2021. The Town does not believe this statement will have a significant impact on the Town’s financial statements.

Item B Page 99 Town Council Meeting March 28, 2023
Town of Woodside
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

14. NEW ACCOUNTING PRONOUNCEMENTS, Continued
GASB Statement No. 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements
The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement.

This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction.

This Statement is effective for reporting periods beginning after June 15, 2022. The Town does not believe this statement will have a significant impact on the Town’s financial statements.

GASB Statement No. 96 – Subscription-Based Information Technology Arrangements This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.

The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs.

This Statement is effective for reporting periods beginning after June 15, 2021. The Town does not believe this statement will have a significant impact on the Town’s financial statements.

Item B Page 100 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 101 Town Council Meeting March 28, 2023

REQUIRED SUPPLEMENTARY INFORMATION
Item B Page 102 Town Council Meeting March 28, 2023
Required Supplementary Information
Town of Woodside
Schedule of Changes in the Net OPEB Liability and Related Ratios Agent Multiple Employers Other Post-Employment Benefit (OPEB) Plan For the Measurement Periods Ended June 30,
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
Total OPEB Liability
Service Cost $ 83,302 $ 51,592 $ 54,172 $ 41,260 $ 54,972 Interest 133,804 124,981 129,611 131,467 129,119
Changes in benefit terms - - - - -
Differences between expected and actual experience 118,115 (1,334) 39,938 (68,566) (1,862) Changes of assumptions (328,057) - (74,298) 257,694 (248,829) Benefit payments (89,997) (103,554) (125,283) (96,220) (135,193) Net change in total OPEB liability (82,833) 71,685 24,140 265,635 (201,793) Total OPEB liability - beginning (a) 1,798,879 1,716,046 1,787,731 1,811,871 2,077,506 Total OPEB liability - ending (b) $ 1,716,046 $ 1,787,731 $ 1,811,871 $ 2,077,506 $ 1,875,713 Plan fiduciary net position
Contributions - employer $ 204,065 $ 155,592 $ 161,684 $ 127,487 $ 135,193 Contributions - employee - - - - -
Net investment income 57,576 54,742 50,862 51,727 283,084 Benefit payments (89,997) (103,554) (125,283) (96,220) (135,193) Administrative expense (292) (375) (173) (1,704) (2,760) Net change in plan fiduciary net position 171,352 106,405 87,090 81,290 280,324 Plan fiduciary net position - beginning ( c ) 525,606 696,958 803,363 890,453 971,743 Plan fiduciary net position - ending (d) $ 696,958 $ 803,363 $ 890,453 $ 971,743 $ 1,252,067 Net OPEB liability - beginning (a)-(c) $ 1,273,273 $ 1,019,088 $ 984,368 $ 921,418 $ 1,105,763 Net OPEB liability - ending (b)-(d) $ 1,019,088 $ 984,368 $ 921,418 $ 1,105,763 $ 623,646 Plan fiduciary net position
as a percentage of the total OPEB liability 41% 45% 49% 47% 67% Covered-employee payroll N/A 2,199,508 $ $ 2,214,874 $ 2,417,151 $ 2,500,768 Net OPEB liability as a percentage of covered-employee payroll N/A 45% 42% 46% 25% Notes to Schedules:
* Fiscal year 2018 was the first year of implementation.

Item B Page 103 Town Council Meeting March 28, 2023
Required Supplementary Information
Town of Woodside
Net OPEB Liability Schedule of Contributions
Agent Multiple Employers Other Post-Employment Benefit (OPEB) Plan For the Fiscal Year Ended June 30,
Fiscal Year Ended June 30, 2018 2019 2020 2021 2022
Actuarially determined contribution $ 169,882 $ 127,487 $ 127,187 $ 136,175 $ 137,449 Contributions to the Trust 114,068 52,038 36,401 31,267 - Pay-go Payments by Employer Unreimbursed by the Trust 89,997 73,408 90,786 96,220 96,664 Active Implicit Rate Subsidy Transferred to OPEB - 30,146 34,497 - 38,529 $ 204,065 $ 155,592 $ 161,684 $ 127,487 $ 135,193
Covered-employee payroll N/A 2,199,508 $ $ 2,214,874 $ 2,417,151 $ 2,500,768 Contributions as a percentage of
covered-employee payroll N/A 7.07% 7.30% 5.27% 5.41%
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation.

Item B Page 104 Town Council Meeting March 28, 2023
Required Supplementary Information
Town of Woodside
Schedule of the Town’s Proportionate Share of the Net Pension Liability CalPERS Pension Miscellaneous Plan
Last 10 Fiscal Years*
Measurement Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Plan's proportion of the Net Pension
Liability (Asset) 0.04430% 0.03801% 0.03754% 0.09435% 0.09238% 0.09109% Plan's proportion share of the
Net Pension Liability (Asset) 2,395,677 $ 4,135,509 $ 3,846,278 $ 3,555,942 $ 3,641,516 $ 3,164,365 $ Plan's Covered-Employee Payroll $ 2,354,822 2,496,707 $ $ 2,168,303 $ 1,992,721 $ 2,072,787 $ 1,995,944 Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its
Covered Payroll 95.95% 175.62% 177.39% 178.45% 175.68% 158.54% Plan’s Fiduciary Net Position as a Percentage
of the Total Pension Liability 72.46% 73.17% 72.29% 74.23% 71.89% 72.29% Plan's Proportionate Share of
Aggregate Employer Contribution $ 568,516 $ 526,765 $ 452,056 $ 390,081 $ 352,418 $ 307,486 Notes to Schedule:
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included.
*Due to change in CALPERS reporting, information prior to fiscal year 2016 is not available.

Item B Page 105 Town Council Meeting March 28, 2023
Required Supplementary Information
Town of Woodside
Schedule of Contributions
CalPERS Pension Miscellaneous Plan
Last 10 Fiscal Years*
Fiscal Year Ended June 30, 2022 2021 2020 2019 2018 2017 Contractually required contribution
(actuarially determined) $ 540,208$ 590,923 469,749$ $ 404,929 $ 390,376 $ 323,181 Actuarially determined contributions (590,923) (540,208) (469,749) (404,929) (390,376) (323,181) Contribution deficiency (excess) $ - -$ -$ -$ -$ -$
Covered payroll $ 2,496,707 2,354,822$ 2,168,303$ 1,992,721$ 2,072,787$ $ 1,995,944 Contributions as a percentage of
covered payroll 23.67% 22.94% 21.66% 20.32% 18.83% 16.19% Notes to Schedule:
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included.
*Due to change in CALPERS reporting, information prior to fiscal year 2017 is not available.

Item B Page 106 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 107 Town Council Meeting March 28, 2023

SUPPLEMENTARY INFORMATION
Item B Page 108 Town Council Meeting March 28, 2023
Town of Woodside
Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Capital Projects Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Final Actual (Negative)

REVENUES
Charges for service $ - $ 2,250 $ 2,250
Total revenues - 2,250 2,250

EXPENDITURES
Capital outlay 3,033,930 3,475,896 441,966
Total expenditures 3,033,930 3,475,896 441,966

REVENUES OVER (UNDER)
EXPENDITURES (3,475,896) (3,031,680) 444,216

OTHER FINANCING SOURCES (USES)
Transfers in 3,181,896 2,996,733 (185,163)
Total other financing sources (uses) 2,996,733 3,181,896 (185,163) Net change in funds balances (294,000) (34,947) 259,053 FUND BALANCES:

Beginning of year (313,037) (313,037) -
End of year $ (607,037) $ (347,984) $ 259,053
Capital Projects
Item B Page 109 Town Council Meeting March 28, 2023

NON-MAJOR GOVERNMENTAL FUNDS
Fund Type Description
Special Revenue Funds:

Traffic Safety Accounts for receipts from fines and forfeitures from violations of the California Vehicle Code, utilized to support the Town's Road Program.

Road Impact Fees Fund accounts for receipts from road impact fees, assessed against all building projects and used for road maintenance purposes.

Gas Tax Fund accounts for receipts of State Gas Tax revenue, designated for road maintenance and construction.

Supplemental Law
Enforcement Service
Fund accounts for receipts of State Revenues derived from the Citizens for Public Safety (COPS) Program that can only be spent on direct law enforcement/ public safety activities.

California Law Enforcement
Equipment Program
Measure W
Fund accounts for State of California grant funds available for law enforcement equipment acquisitions.

Fund accounts for County of San Mateo sales tax on all qualified retail transactions.

Item B Page 110 Town Council Meeting March 28, 2023
Special Revenue Funds
Traffic Road Gas
Safety Impact Fees Tax
Cash and investments $ 206,762 $ 402,547 $ 33,575
Receivables:

Interest 285 650 172
Intergovernmental - - 19,925
Other receivable 18,986 - -
Total assets $ 226,033 $ 403,197 $ 53,672
Liabilities:

Accounts payable $ 4,049 $ 14,943 $ 414
Total liabilities 4,049 14,943 414
Fund Balances
Restricted 221,984 388,254 53,258
Total fund balances 221,984 388,254 53,258
Total liabilities and fund balances $ 226,033 $ 403,197 $ 53,672 ASSETS

LIABILITIES AND FUND BALANCES
Town of Woodside
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Item B Page 111 Town Council Meeting March 28, 2023
Special Revenue Funds
Supplemental California Law Total
Law Enforcement Enforcement Non-Major
Program Equipment Program Measure W Governmental Funds
$ 2,802 57,285 $ 54,233 $ 757,204 $
4 78 96 1,285
- - 14,477 34,402
- - - 18,986
$ 2,806 57,363 $ 68,806 $ 811,877 $
$ - - $ - $ 19,406 $
- - - 19,406
2,806 57,363 68,806 792,471
2,806 57,363 68,806 792,471
$ 2,806 57,363 $ 68,806 $ 811,877 $
Item B Page 112 Town Council Meeting March 28, 2023
Town of Woodside
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022
Special Revenue Funds
Traffic Road
Safety Impact Fees Gas Tax

REVENUES
Taxes and assessment $ - $ - $ 234,425
Fines and forfeitures 110,596 - -
Intergovernmental - - -
Use of money and property 519 1,258 178
Charges for services - 410,354 -
Other revenues 20,279 - -
Total revenues 131,394 411,612 234,603

EXPENDITURES
Current:

Safety Services - - -
Public Works 80,339 247,420 85,586
Total expenditures 80,339 247,420 85,586

REVENUES OVER (UNDER)
EXPENDITURES 51,055 164,192 149,017
OTHER FINANCING SOURCES (USES):

Transfers out - (457,371) (154,000)
Total other financing sources (uses) - (457,371) (154,000) NET CHANGES IN FUND BALANCES 51,055 (293,179) (4,983)
FUND BALANCES:

Beginning of year 170,929 681,433 58,241
End of year $ 221,984 $ 388,254 $ 53,258
Item B Page 113 Town Council Meeting March 28, 2023
Supplemental California Law Total
Law Enforcement Enforcement Non-Major
Service Equipment Program Measure W Governmental Funds
$ - $ - $ 162,918 $ 397,343
- - - 110,596
161,285 - - 161,285
191 7 166 2,319
- - - 410,354
- - - 20,279
161,476 7 163,084 1,102,176
175,000 - - 175,000
- - - 413,345
175,000 - - 588,345
(13,524) 7 163,084 513,831
- - (110,746) (722,117)
- - (110,746) (722,117)
(13,524) 7 52,338 (208,286)
70,887 2,799 16,468 1,000,757
$ 57,363 $ 2,806 $ 68,806 $ 792,471
Special Revenue Funds
Item B Page 114 Town Council Meeting March 28, 2023
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Variance w/Final
Positive
Budget Actual (Negative)

REVENUES
Fines and forfeitures $ 75,000 $ 110,596 $ 35,596
Use of money and property 600 519 (81)
Other revenues 4,400 20,279 15,879
Total revenues 80,000 131,394 51,394

EXPENDITURES
Current:

Public works 74,650 80,339 (5,689)
Total expenditures 74,650 80,339 (5,689)

REVENUES OVER (UNDER)
EXPENDITURES 5,350 51,055 45,705
Net change in fund balances 5,350 51,055 45,705
FUND BALANCES:

Beginning of year 170,929 170,929 -
End of year $ 176,279 $ 221,984 $ 45,705
Town of Woodside
Traffic Safety Special Revenue Fund
For the year ended June 30, 2022
Item B Page 115 Town Council Meeting March 28, 2023
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Variance w/Final
Positive
Budget Actual (Negative)

REVENUES
Use of money and property $ 2,750 $ 1,258 $ (1,492)
Charges for services 350,000 410,354 60,354
Other revenues - - -
Total revenues 352,750 411,612 58,862

EXPENDITURES
Current:

Public works 277,300 247,420 29,880
Total expenditures 277,300 247,420 29,880

REVENUES OVER (UNDER)
EXPENDITURES 75,450 164,192 88,742
OTHER FINANCING SOURCES (USES):

Transfers out (488,500) (457,371) 31,129
Total other financing sources (uses) (488,500) (457,371) 31,129 Net change in fund balances (413,050) (293,179) 119,871 FUND BALANCES:

Beginning of year 681,433 681,433 -
End of year $ 268,383 $ 388,254 $ 119,871
Town of Woodside, California
Road Impact Fees Special Revenue Fund
For the year ended June 30, 2022
Item B Page 116 Town Council Meeting March 28, 2023
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Variance w/Final
Positive
Budget Actual (Negative)

REVENUES
Taxes and assessments $ 252,000 $ 234,425 $ (17,575)
Use of money and property 250 178 (72)
Total revenues 252,250 234,603 (17,647)

EXPENDITURES
Current:

Public works 85,820 85,586 234
Total expenditures 85,820 85,586 234

REVENUES OVER (UNDER)
EXPENDITURES 166,430 149,017 (17,413)
OTHER FINANCING SOURCES (USES):

Transfers out (144,000) (154,000) (10,000)
Total other financing sources (uses) (144,000) (154,000) (10,000) Net change in fund balances 22,430 (4,983) (27,413)
FUND BALANCES:

Beginning of year 58,241 58,241 -
End of year $ 80,671 $ 53,258 $ (27,413)
Town of Woodside, California
Gas Tax Special Revenue Fund
For the year ended June 30, 2022
Item B Page 117 Town Council Meeting March 28, 2023
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Supplemental Law Enforcement Services Special Revenue Fund Variance w/Final
Positive
Budget Actual (Negative)

REVENUES
Intergovernmental $ 160,000 $ 161,285 $ 1,285
Use of money and property 600 191 (409)
Total revenues 160,600 161,476 876

EXPENDITURES
Current:

Safety services 175,000 175,000 -
Total expenditures 175,000 175,000 -

REVENUES OVER (UNDER)
EXPENDITURES (14,400) (13,524) 876
Net change in fund balances (14,400) (13,524) 876
FUND BALANCES:

Beginning of year 70,887 70,887 -
End of year $ 56,487 $ 57,363 $ 876
Town of Woodside, California
For the year ended June 30, 2022
Item B Page 118 Town Council Meeting March 28, 2023
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Variance w/Final
Positive
Budget Actual (Negative)

REVENUES
Intergovernmental $ - $ - $ -
Use of money and property 7 7 -
Total revenues - 7 7

REVENUES OVER (UNDER)
EXPENDITURES - 7 7
Net change in fund balances 7 7 -
FUND BALANCES:

Beginning of year $2,799 2,799 -
End of year $ 2,799 $ 2,806 $ 7
Town of Woodside, California
California Law Enforcement Equipment Program Special Revenue Fund For the year ended June 30, 2022
Item B Page 119 Town Council Meeting March 28, 2023
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Variance w/Final
Positive
Budget Actual (Negative)

REVENUES
Intergovernmental $ 140,000 $ 162,918 $ 22,918
Use of money and property 150 166 16
Total revenues 140,150 163,084 22,934

REVENUES OVER (UNDER)
EXPENDITURES 140,150 163,084 22,934

OTHER FINANCING SOURCES (USES)
Transfers out (140,000) (110,746) 29,254
Total other financing sources (uses) (140,000) (110,746) 29,254 Net change in funds balances 150 52,338 52,188
FUND BALANCES:

Beginning of year - 16,468 16,468
End of year $ 150 $ 68,806 $ 68,656
Town of Woodside
Measure W Special Revenue Fund
For the year ended June 30, 2022
Item B Page 120 Town Council Meeting March 28, 2023
This page intentionally left blank
Item B Page 121 Town Council Meeting March 28, 2023

SUPPLEMENTARY SCHEDULES
Item B Page 122 Town Council Meeting March 28, 2023
Town of Woodside
Schedule of Land Assets
For the year ended June 30, 2022
Name/APN Physical Address Date Acquired Value*
Open Space/ APN 072-041-040 Raymundo Drive 9/23/1975 $ 2,500 Equestrian Facility/ APN 072-111-160 3375 Tripp Rd 4/28/1976 53,778 Museum Parking/ APN 073-112-210 2961 Woodside Rd 6/13/1990 1,246,514 Open Space/ APN 069-170-450 Woodside Rd 12/29/1969 14,785 Open Space/ APN 073-082-280 Woodside Rd 2/8/1978 275,982 Woodside Town Hall/ APN 073-112-030 2955 Woodside Rd 12/1/1990 498,740 Town Center Parking/ APN 073-112-330 2955 Woodside Rd 1/7/1991 165,000 Library/ APN 072-162-100 3140 Woodside Rd 6/22/1967 40,340 Open Space/ APN 068-322-390 Woodhill Dr 3/10/1981 33,600 Open Space Joan Olsen Preserve 4/21/1980 120,000
Kite Hill 1/1/1985 280,000
Barkley Fields & Park/ APN 068-322-330 5001 Farm Hill Blvd 12/22/2005 6,737,134 Total Land $ 9,468,373
*Values were derived from historical cost records
Item B Page 123 Town Council Meeting March 28, 2023
INDEPENDENT AUDITOR’S REPORT ON

INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN

AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the Town Council
Town of Woodside
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 basic financial statements of the Town of Woodside (Town), California, as of and for the year ended June 30, 2022, and have issued our report thereon date October 13, 2022.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s internal control over financial reporting (internal control) as a basis for designing 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 the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’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 the Town’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.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town’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. 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 that are required to be reported under Government Auditing Standards.

We have also issued a separate Memorandum on Internal Control dated October 13,2022 which is an integral part of our audit and should be read in conjunction with this report.

Item B Page 124 Town Council Meeting March 28, 2023
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 results of that testing, and not to provide an opinion on the effectiveness of the Town’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 Town’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Pleasant Hill, California
October 13, 2022
Item B Page 125 Town Council Meeting March 28, 2023
INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2021-2022 APPROPRIATIONS LIMIT INCREMENT
Honorable Town Council
Town of Woodside, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet) of the Town of Woodside, California, for the year ended June 30, 2022. The Town’s management is responsible for the Worksheet.

The Town has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of these procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings were as follows:

A. We obtained the Worksheet and determined that the 2021-2022 Appropriations Limit of $5,640,134 and annual adjustment factors were adopted by Resolution No. 2021-7429 of the Town Council.

We also determined that the population and inflation options were selected by a recorded vote of the Town Council.

B. We recomputed the 2021-2022 Appropriations Limit by multiplying the 2020-2021 Prior Year Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by multiplying the population option by the inflation option.

C. For the Worksheet, we agreed the Per Capita Income Factor, Town Population Factor and County Population Factor to California State Department of Finance Worksheets.

We were engaged by the Town to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

Item B Page 126 Town Council Meeting March 28, 2023
ATTACHMENT A2
This report is intended solely for the information and use of management and the Town Council and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.

Pleasant Hill, California
October 13, 2022
Item B Page 127 Town Council Meeting March 28, 2023
Town of Woodside
Measure A Fund
Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes
For the Year Ended June 30, 2022
Item B Page 128 Town Council Meeting March 28, 2023
ATTACHMENT A3
This Page Left Intentionally Blank
Item B Page 129 Town Council Meeting March 28, 2023

INDEPENDENT AUDITOR'S REPORT ON MANAGEMENT’S ASSERTION
Honorable Town Council
Town of Woodside, California
We have examined management of the Town of Woodside’s assertion, included in accompanying Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure A Fund for Local Transportation Purposes (the Agreement) between the Town and the San Mateo County Transportation Authority dated August 22, 1989, that the Town of Woodside (Town) complied with the requirements of the Agreement during the year ended June 30, 2022. Management is responsible for that assertion. Our responsibility is to express an opinion on management’s assertion based upon our examination.

Our examination was conducted in accordance with the attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether management’s assertion that the Town complied with the requirements of the Agreement is fairly stated, in all material respects. An examination involves performing procedures to obtain evidence about management’s assertion. The nature, timing and extent of procedures selected depend on our judgment, including an assessment of the risks of material misstatement of management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.

In our opinion, management’s assertion that the Town complied with the requirements of the Agreement for the year ended June 30, 2022 is fairly stated, in all material respects.

This report is intended solely for the information and use of management, the Town Council and the San Mateo County Transportation Authority and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.

Pleasant Hill, California
October 13, 2022
Item B Page 130 Town Council Meeting March 28, 2023
Town of Woodside, California
Balance Sheet - Measure A Fund
June 30, 2022
Cash and investments 636,206 $
Receivables:

Interest 1,062
Intergovernmental 27,290
Total assets $ 664,558
Liabilities:

Accounts payable 1,371 $
Total liabilities 1,371
Fund balances:

Restricted 663,187
Total fund balances 663,187
Total liabilities and fund balances $ 664,558
ASSETS

LIABILITIES AND FUND BALANCES
Item B Page 131 Town Council Meeting March 28, 2023
Town of Woodside, California
Schedule of Changes in Fund Balance - Measure A Fund
June 30, 2022

REVENUES
Measure A 367,765 $
Interest income 1,983
Total revenues 369,748

EXPENDITURES
Current:

Town-wide road rehabilitation project 200,347
Total expenditures 200,347
REVENUES OVER (UNDER) EXPENDITURES 169,401

OTHER FINANCING SOURCES(USES)
Transfer (out) to General fund for transportation capital projects (149,202) Total other financing sources (uses) (149,202)
Net change in fund balances 20,199
FUND BALANCES:

Beginning of year 642,988
End of year 663,187 $
Item B Page 132 Town Council Meeting March 28, 2023
This Page Left Intentionally Blank
Item B Page 133 Town Council Meeting March 28, 2023
Item B Page 134 Town Council Meeting March 28, 2023
This Page Left Intentionally Blank
Item B Page 135 Town Council Meeting March 28, 2023
Town of Woodside
Measure W Funds
Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for
Local Transportation Purposes in Accordance
with the San Mateo County Congestion Relief Plan
For the Year Ended June 30, 2022
Item B Page 136 Town Council Meeting March 28, 2023
ATTACHMENT A4
This Page Left Intentionally Blank
Item B Page 137 Town Council Meeting March 28, 2023
INDEPENDENT AUDITOR'S REPORT ON MANAGEMENT’S ASSERTION
Honorable Town Council
Town of Woodside, California
We have examined management of the Town of Woodside’s assertion, included in the accompanying Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes in Accordance with the San Mateo County Congestion Relief Plan (the Agreement) between the Town of Woodside and the San Mateo County Transportation Authority dated September 24, 2019, that the Town complied with the requirements of the Agreement during the year ended June 30, 2022. Management is responsible for that assertion. Our responsibility is to express an opinion on management’s assertion about the City’s compliance based upon our examination.

Our examination was conducted in accordance with the attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether management’s assertion that the Town complied with the requirements of the Agreement is fairly stated, in all material respects. An examination involves performing procedures to obtain evidence about management’s assertion. The nature, timing and extent of procedures selected depend on our judgment, including an assessment of the risks of material misstatement of management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.

In our opinion, management’s assertion that the Town complied with the requirements of the Agreement for the year ended June 30, 2022 is fairly stated, in all material respects.

This report is intended solely for the information and use of management, the Town Council and the San Mateo County Transportation Authority and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.

Pleasant Hill, California
October 13, 2022
Item B Page 138 Town Council Meeting March 28, 2023
Town of Woodside, California
Balance Sheet - Measure W Fund
June 30, 2021
Cash and investments 54,233 $
Receivables:

Interest 96
Intergovernmental 14,477
Total assets $ 68,806
Restricted 68,806 $
Total fund balances $ 68,806
ASSETS

FUND BALANCES
Item B Page 139 Town Council Meeting March 28, 2023
Town of Woodside, California
Schedule of Changes in Fund Balance - Measure W Fund
June 30, 2022

REVENUES
Measure W 162,918 $
Interest income 166
Total revenues 163,084

OTHER FINANCING SOURCES(USES)
Transfer (out) to General fund for transportation capital projects (110,746) Total other financing sources (uses) (110,746)
Net change in fund balances 52,338
FUND BALANCES:

Beginning of year 16,468
End of year 68,806 $
Item B Page 140 Town Council Meeting March 28, 2023
This Page Left Intentionally Blank
Item B Page 141 Town Council Meeting March 28, 2023
Item B Page 142 Town Council Meeting March 28, 2023
This Page Left Intentionally Blank
Item B Page 143 Town Council Meeting March 28, 2023

TOWN OF WOODSIDE

REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED JUNE 30, 2022
Item B Page 144 Town Council Meeting March 28, 2023
This Page Left Intentionally Blank
Item B Page 145 Town Council Meeting March 28, 2023

TOWN OF WOODSIDE

REQUIRED COMMUNICATIONS
For The Year Ended June 30, 2022
Table of Contents
Page
Required Communications ................................................................................................................................ 1 Significant Audit Matters:

Qualitative Aspects of Accounting Practices ................................................................................... 1 Difficulties Encountered in Performing the Audit ........................................................................... 2 Corrected and Uncorrected Misstatements ...................................................................................... 2 Disagreements with Management .................................................................................................... 3 Management Representations ............................................................................................................ 3 Management Consultations with Other Independent Accountants ................................................. 3 Other Audit Matters or Issues ............................................................................................................ 3 Other Matters ............................................................................................................................................ 3 Item B Page 146 Town Council Meeting March 28, 2023
This Page Left Intentionally Blank
Item B Page 147 Town Council Meeting March 28, 2023

REQUIRED COMMUNICATIONS
To the Honorable Members of the Town Council
The Town of Woodside, California
We have audited the basic financial statements of the Town of Woodside for the year ended June 30, 2022.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated August 25, 2022. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Town are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. The following pronouncements became effective, but did not have a material effect on the financial statements:

GASB 87 – Leases
GASB 89 – Accounting for Interest Cost Incurred before the End of a Construction Period GASB 90 – Majority Equity Interests (an amendment of GASB Statements No. 14 and No. 61) GASB 92 – Omnibus 2020
GASB 93 – Replacement of Interbank Offered Rates
GASB 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 GASB 99 – Omnibus 2022
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the Town during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the Town’s financial statements were:

Item B Page 148 Town Council Meeting March 28, 2023
Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of resources are disclosed in Note 10 to the financial statements and are based on actuarial studies determined by a consultant, which are based on the experience of the Town. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimated Net OPEB Liabilities: Management’s estimate of the net OPEB liability is disclosed in Note 11 to the financial statements and is based on actuarial study determined by a consultant, which is based on the experience of the Town. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimated Fair Value of Investments: As of June 30, 2022, the Town held approximately $11.7 million of cash and investments as measured by fair value as disclosed in Note 2 to the financial statements. Fair value is essentially market pricing in effect as of June 30, 2021. These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2022.

Estimate of Depreciation: Management’s estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 1 to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimate of Compensated Absences: Accrued compensated absences which are comprised of accrued vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 6 to the financial statements. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Disclosures - The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the Town Council.

Item B Page 149 Town Council Meeting March 28, 2023
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in a management representation letter dated October 13, 2022.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Town’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Matters or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Town’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information.

We were engaged to report on the supplementary information which accompany the financial statements, but are not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Item B Page 150 Town Council Meeting March 28, 2023
We were not engaged to report on the Introductory and Schedule of Land Assets Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. ******
This information is intended solely for the use of Town Council and management and is not intended to be, and should not be, used by anyone other than these specified parties.

Pleasant Hill, California
October 13, 2022
Item B Page 151 Town Council Meeting March 28, 2023

TOWN OF WOODSIDE

TOWN COUNCIL FINANCIAL MANAGEMENT POLICIES
2021-22 ANNUAL COMPLIANCE ASSESSMENT

1. The annual budget must be balanced.

The 2021-22 Adopted Budget, approved by the Town Council on June 22, 2021, was balanced and remained balanced with all subsequent adjustments during the fiscal year.

2. Adequate reserves must be developed and maintained, including a minimum reserve of thirty percent of estimated operating revenues for the Town’s General Fund.

General Fund reserves were $5.9 million as of June 30, 2022, a 12-month averaged amount, which was 60% of operating revenues, above the mandated thirty percent target.

3. One-time revenues and resources should not be used to support ongoing operations.

One-time revenues and resources were not used to support any ongoing operations during 2021-22.

4. The following areas should be self-supporting, including appropriate overhead costs:
⇒ Development services activities
⇒ Recreation
⇒ Maintenance and assessment districts
⇒ Enterprise funds
Except for Development Services, all of these programs and activities were selfsupporting during 2021-22. Development services activities include the functions of the Planning Department and the Public Works Department that support the processing of building permits, site development, and other permits and the approval of permits and applications by the Planning Commission and the Architectural and Site Review Board. The Town Council adopted a new fee schedule for Sewer fees and planning charges which became effective on May 25, 2013 and another Sewer fees review was completed in 2018. Planning review continues to be subsidized by about 30% by the General Fund. On March 14, 2023 the Town Council adopted a new schedule of fees and charges which will take effect on July 1, 2023.

5. Operating and capital budget items should be clearly distinguished and preferably reported separately.

Operating and capital items were clearly distinguished and reported during 2021-22.

6. Assessment districts must be reported separately by fund.

The Town's two assessment districts (Town Center Sewer and Woodside Road-Whiskey Hill Road Parking Assessment Districts) were reported separately by fund.

7. Overhead costs should be allocated to all functions on a fair basis.

The Town developed and implemented an overhead allocation process during 1992-93 Item B Page 152 Town Council Meeting March 28, 2023

ATTACHMENT B
that has been fairly applied in each ensuing fiscal year, including 2021-22.

8. Interfund transfers and loans, regardless of duration, should be explicitly authorized by formal Council action and incorporated into the budget approval process.

All interfund transfers were formally authorized by Town Council action during 2021-

22. There was one $775,000 interfund loan during 2016-17 from the General Fund to the Town Center Sewer Pump Station Fund for improvements. Town Council adopted resolution 2016-7135 on December 13, 2016 approving a 9-year re-payment schedule with the last payment on 6/30/2026.

10.Debt should be issued only to support capital costs and not operating expenses of the Town.

No debt was issued during the fiscal year.

11.Revenues and expenditures should be estimated on the basis of reasonable and conservative assumptions.

This policy was applied to all revenue and expenditure assumptions used to develop and update the 2021-22 budget, for all funds.

12.The Town Council should conduct a comprehensive review of the fiscal status of the Town on a quarterly basis.

The Town Council conducted the 2021-22 First Quarterly Budget Review on November 16, 2021, the 2021-22 Mid-Year Budget Review on February 22, 2022, the 2021-22 Third Quarterly Budget Review on May 24, 2022, and the May Budget Review on July 12, 2022.

13. Modifications to the Town Budget should be made only by resolution of the Town Council and should only be considered within the context of a formal monthly or quarterly review of the Town’s budget status.

The 2021-22 budget was modified on July 12, 2022 (adding $8,000 to support new lighting and landscaping for new parking spaces at the Town Library), via formal resolution on the Town Council's agenda, in tandem with the review of the Town’s budget status.

14.The Town will incorporate a five-year financial planning model into all of its fiscal and programmatic decisions.

The Town developed a Five-year General Fund Forecast Model as the 1993-94 Proposed Budget was developed. It has been incorporated into the financial planning and management processes of the Town. Additionally, a similar five-year model has been developed for the five funds that comprise the Town's road program. Both models are updated two to three times a year, as revised forecast data is developed. The models are used to determine the long-range impact of current financial decisions.

15.The five-year model will be updated and reviewed by the Town Council on at least a semi-annual basis and whenever a significant proposal that will impact Town finances is considered.

Item B Page 153 Town Council Meeting March 28, 2023
The five-year model was updated and reviewed by the Town Council on three occasions during 2021-22. The first update was during the Mid-Year Budget Review in February of 2022, the second update was during the Third Quarterly Budget Review May 2022, third was in tandem with review of the 2021-22 Proposed Budget in June of 2022.

16.A detailed financing plan will be adopted by the Town Council prior to the final approval of any capital project.

A complete financing plan was developed and approved in conjunction with the approval of each of the Town's capital projects.

17.The Town's compliance with these financial management policies will be assessed on an annual basis as part of the annual audit and presentation of the audited General Purpose Financial Statements and Management Letter.

This report represents the Town's assessment of its compliance with the financial management policies during 2021-22.

18.No phase of a capital project should be initiated until all the resources required for its completion are available to the Town.

The Town Council approved specific budgets for capital improvement projects, incorporating all necessary phases and identifying the supporting funding prior to the initiation of any individual phase, in keeping with this policy.

19.A Request for Proposal (RFP) shall be issued whenever the Town desires to obtain outside services of significant scope, unless specifically waived by the Town Council, in order to ensure that the Town can obtain the highest quality service at the most competitive cost level. The Town Manager will ensure that decisions regarding the issuance of an RFP are brought to the Town Council in a timely manner.

The Town complied with this requirement during 2021-22.

20.The annual budget must include an appropriation for the interest expense on all shortterm debt and must be amended, as required, at the time of debt issuance to provide for this cost.

All short-term debt was retired as of June 30, 1997 and no new short-term debt was assumed during 2021-22.

Dated: March 22, 2023
Item B Page 154 Town Council Meeting March 28, 2023

TOWN OF WOODSIDE

MEMORANDUM
TO: MAYOR AND MEMBERS OF THE TOWN COUNCIL
FROM: KEVIN BRYANT, TOWN MANAGER
DATE: MARCH 28, 2023
RE: ITEM C: RESOLUTION TO BAN PESTICIDES ON TOWN-OWNED PROPERTY AND

DISCOURAGE THEIR USE AND SALE BY WOODSIDE RESIDENTS AND BUSINESSES ____________________________________________________________________________ On November 17, 2022, the Environment: Open Space, Conservation & Sustainability Committee voted unanimously to recommend that the Town Council consider a resolution to ban the use of pesticides on Town-owned property and to discourage their use and sale by Woodside residents and business.

Attached are: (A) a Proposal to the Woodside Town Council to Adopt a Pesticide-Free Resolution and (B) a Draft Resolution.

Members of the Environment Committee will be at the March 28th Council meeting to present the Committee proposal and answer questions.

Item C Page 1 Town Council Meeting March 28, 2023
Proposal to Woodside Town Council to
Adopt Pesticide-Free Resolution
Submitted by the Environment, Open Space, and Sustainability Committee Introduction
Insecticides, herbicides, rodenticides and other poisons—collectively referred to as pesticides—have been proven to be a leading cause of death in wildlife in northern California, as well as a threat to human health. Give the Town of Woodside’s historic support for wildlife, The Environment, Open Space and Sustainability Committee proposes that the Town of Woodside adopt a resolution banning all pesticides on city-owned property and discouraging their use and sale by Woodside residents and businesses, respectively. Nineteen northern California jurisdictions have adopted similar resolutions, including Portola Valley, Menlo Park, and Belmont.

Proposed Solution
The alternative to the use of pesticides is commonly referred to as Earth Friendly Management. Earth Friendly Management promotes problem-solving to champion pest prevention and landscape enrichment strategies that lead to healthy soil, plant life, wildlife, and structure protection.

Practices like Integrated Pest Management (which emphasizes natural prevention, monitoring and control of pests) and Organic Land Management are considered Earth Friendly Management if performed in the right way. The following principles are important elements in all such strategies and are practical alternatives to pesticide use.
• Repel: apply non-toxic repellants, such as garlic, castor oil, soap, or tabasco, to name a few examples. Traps can also be used as a way to eradicate pests that cannot be repelled. • Exclude: seal possible entryways and ensure any wildlife attractants are removed and securely stored. It is important to note here that pests are attracted to garbage; appropriate local Dumpster Ordinances can help ensure that garbage is maintained in a fashion that does not invite pests.
• Deter: remove artificial food sources for wildlife and consider embracing the presence of predator species. To that end, the Environment, Open Space, and Sustainability Committee regularly hosts webinars and/or in-person talks to help Woodside community members learn more about living with predator species in our community. There are also resources available to community members on the Town website.

Effective and safe replacements for dangerous herbicides and insecticides are also available. For example, termite extermination can be done with orange oil, or less toxic chemical products such as Sentricon. The herbicides on this list can be replaced with a host of DIY or commercial organic weed killers that use vinegar, essential oils, and/or herbicidal soaps.

Item C Page 2 Town Council Meeting March 28, 2023

ATTACHMENT A
Adoption of the proposed resolution would have implications for the Town, local businesses and residents, and the Environment, Open Space, and Sustainability Committee, as follows:
• The Town would NOT need to make changes to any landscape management products currently in use. After reviewing the list of products used as of March 2022, the Environment, Open Space, and Sustainability Committee deemed them to be safe. The resolution would, however, prevent the ability of Town contractors to switch to poisonbased products in the future. • The resolution would encourage (but not require) that pesticides be phased out by local businesses and residents.
• The Environment, Open Space, and Sustainability Committee would be responsible for outreach to local businesses and residents, informing them of the example set by the Town and helping them to learn about potential alternatives. This outreach would be conducted through flyers, events, and additional information on the website.

Pesticide Summary & Impacts
There are many types of pesticides, with varying effects on animal and human health. While many insecticides and herbicides have been shown to have negative health impacts, rodenticides have been proven to be the most harmful.

There are two types of rodenticides: anticoagulant and non-anticoagulant. Blood anticoagulant rodenticides cause internal bleeding and hemorrhaging which ultimately is fatal in rats and mice.

Anticoagulant rodenticides have been shown to be the most lethal to carnivorous animal populations, including mountain lions, coyotes bobcats, foxes, raptors, and fishers. Anticoagulant rodenticides can be either second generation or first generation. Second generation anticoagulant rodenticides are the most advanced and dangerous poisons. They kill very gradually, so rodents continue eating them after they’ve already ingested a lethal dose. By the time the rodent dies, its body contains multiple times the lethal dose and can therefore be deadly to predators, scavengers, and pets. First generation anticoagulant rodenticides are less potent but are deadly if ingested more than once by a rodent, which is common.

While non-anticoagulant rodenticides are less severe, they still pose serious dangers to the wildlife ecosystem and are especially dangerous to pets since they are easily ingested and have no antidotes.

The EPA has published the Risk Mitigation Decision for Ten Rodenticides,1 which includes both first and second generation anticoagulant rodenticides and non-anticoagulant rodenticides. This report summarizes the 2008 EPA decision that all rodenticide bait products be limited to bait stations to reduce risk to children, and also puts in place measures to prevent general consumers from purchasing bait products containing the ten rodenticides that pose the greatest risk to wildlife. However, because of the proven negative effects of all types of pesticides, the Environment, Open Space and Sustainability Committee proposes that the pesticide-free resolution cover not only these rodenticides, but also insecticides and herbicides.

Wildlife can be exposed to pesticides through either direct or indirect ingestion. In other words, wildlife like bees, birds or small mammals may ingest the pesticide directly, while large carnivorous species 1 Rodenticides Final Risk Mitigation Decision; Notice of Availability. The Federal Register. June 4, 2008. https://www.federalregister.gov/documents/2008/06/04/E8-12493/rodenticides-final-risk-mitigation-decision-notice-ofavailability Item C Page 3 Town Council Meeting March 28, 2023
typically only ingest it via their prey. In exposed animals, pesticide exposure is linked to cancer, endocrine disruption, reproductive effects, neurotoxicity, kidney and liver damage, birth defects, and developmental and behavioral changes. Exposure to poisons also increase the likelihood that animals will die from other diseases, such as mange. Because pesticides have negative effects throughout the food chain, including bees, pollinators, and other beneficial organisms—and on local water quality— they cause harm to the entire ecosystem. A demonstration of how poison spreads throughout ecosystem is included in the figure below.

In California countless studies have been conducted that show the detrimental effects of rodenticides on predatory species in particular. Together, these studies have demonstrated that the vast majority of predators have been exposed to pesticides, but also that increased pesticide exposure is linked to decreased survival rate (the percentage of individuals that live from one year to the next) and therefore decreased animal populations. Here are a few of the findings our committee finds the most compelling; note that this is not an exhaustive list.
• Of 252 mountain lions tested for poisons between 2016 and 2018 in 37 California counties, 96% had been exposed to one or more poisons and 72% to 3 or more poisons.2 • Since 2012, eight California mountain lions have been documented as dying directly from poison exposure. These mountain lions were all found to have been exposed to five to six different anticoagulant rodent poisons, including both first generation and second generation varieties. Some of these animals were discovered by hikers, and most made local news. Many other mountain lions have likely died from poison exposure (based on exposure levels shown in the first bullet above), but were not found or tested. 2 “An Investigation of Anticoagulant Rodenticide Data Submitted to the Department of Pesticide Regulation.” Department of Pesticide Regulation, Pesticide Registration Branch. November 16, 2018. https://www.cdpr.ca.gov/docs/registration/reevaluation/2018_investigation_anticoagulant.pdf Item C Page 4
Town Council Meeting March 28, 2023
• The Mid-Peninsula Open Space District linked the illness and death of many bobcats found in its preserves to second generation anticoagulant rodenticides3 • Bobcats have been completely eradicated from the Conejo Valley in southern California due to increased vulnerability to the deadly disease mange, which is commonly linked to pesticide exposure.4
• Of 195 bobcats tested in five southern California counties, first generation anticoagulant pesticides were found in 77% of the individuals.5
• As of 2010, 92% of raptors (owls and hawks) collected in San Diego County and 79% collected in the Central Valley contained anticoagulant rodenticides.6 • In a 2014 study of 68 kit foxes texted near Bakersfield, 74% were exposed to anticoagulant rodenticides. This is particularly disappointing because kit foxes are listed on the federal Endangered Species list and as threatened in California.7 Beyond the demonstrated detrimental effects on wildlife, pesticides have also been shown to be harmful to humans (particularly children, elderly, and individuals with health problems) and pets. It is estimated that 10,000 children per year are accidentally exposed to mouse and rat baits.8 There is a wide range of effects to human and pet health of exposure to pesticides, from mild symptoms like eye and skin irritation or vomiting and diarrhea, to severe symptoms like increased risk of cancer, birth defects, and even death (from ingesting zinc phosphide, for example).

Regional Examples
Pesticide-free resolutions have been passed in eighteen northern California jurisdictions: Albany, Belmont, Berkeley, Brisbane, Davis, El Cerrito, Emeryville, Fairfax, Foster City, Humboldt County, Marin County, Menlo Park, Portola Valley, Richmond, San Anselmo, San Francisco (City and County), Santa Cruz County.

Conclusion
In conclusion, the Environment, Open Space, and Sustainability Committee asks that the Town Council consider adopting a pesticide-free resolution. The primary drivers for such a resolution are the proven fatal impact that high pesticide exposure can have on wildlife; the negative impacts of pesticides on human health; and the availability of alternative strategies to repel, exclude, and deter pests. We hope 3 https://www.openspace.org/what-we-do/projects/integrated-pest-management?utm_campaign=ENews&utm_medium=email&_hsmi=232438337&_hsenc=p2ANqtz9RNAhP8PZqYijs0qFMdU0gIwSjXsk3XWSBjU1vZhZwTzMhrFHjot6pmttwyIVsvbqoCVQ5MePutl8KocHwxkLP6gvew&utm_content=232438337&utm_source=hs_email#rodenticides 4 Riley SPD, Boydston EE, Crooks KR, Lyre, LM. In book Urban Carnivores edited by SD Gehrt, SPD Riley, BL Cypher. Baltimore, MD: The Johns Hopkins University Press. pp. 121-138 (2010). 5 Serieys, Laurel E.K., Mathew S. Rogan, Stephani S. Matushima, and Christopher C. Wilmers. “Road-crossings, vegetative covr, land use and poisons interact to influence corridor effectiveness.” Biological Conservation, Volume 253. January 2021, 108930. https://www.sciencedirect.com/science/article/abs/pii/S0006320720309885 6 Lima, L.L., and Salmon, T.P. “Assessing some potential environmental impacts from agricultural anticoagulant uses.” Proceedings of the Vertebrate Pest Conference 24:199-203 (2010). 7 https://poisonfreemalibu.org/rodent-poisons/#poisoned-animals 8 McClure, Robert. “Rat Poisons Endanger 10,000 Children Every Year in the U.S.” Environmental Health news. December 14, 2010. https://www.scientificamerican.com/article/rat-poisons-endanger-10000-children/ Item C Page 5
Town Council Meeting March 28, 2023
the resolution will communicate the urgency of the pesticide threat; urge businesses to no longer sell pesticides; urge property owners to cease purchasing and using pesticides and/or to encourage their professional landscape management companies to do so; and commits the Town to avoiding pesticide use in perpetuity. The Environment, Open Space, and Sustainability will take responsibility for outreach and engagement efforts following resolution adoption.

Item C Page 6
Town Council Meeting March 28, 2023
Attachment 1: List of proposed banned
products
Organized by pesticide type
Insecticides
• Chlorpyrifos
o Chlorpyrifos is an organophosphate insecticide, acaricide and miticide used primarily to control foliage and soil-borne insect pests.
o All use on food crops was banned by the EPA as of Feb, 2022 due to excessive risks to pregnant women and children, including long-term harm to children s brain function, including loss of IQ and impaired working memory. Non-agricultural, non-food uses are unaffected by this rule, but will be considered as EPA completes its registration review of this chemical.1
o A draft biological evaluation by the Environmental Protection Agency found that chlorpyrifos is likely to adversely affect” 97 percent of all threatened and endangered wildlife, including more than 100 listed bird species.2 o Example product brands: Lorsban® and Dursban® from Corteva™ Agriscience • Naphthalene
o The chemical naphthalene is an effective pesticide found in mothballs and other pest control products. Its strong odor also makes it a pest repellant. o Animal studies have suggested that naphthalene can cause cancer. The International Agency for Research on Cancer (IARC) of the World Health Organization (WHO) concluded that naphthalene is possibly carcinogenic to humans. The U.S. EPA classified naphthalene as a possible human carcinogen, also based on animal studies3 o In humans, women who ate naphthalene mothballs or inhaled the vapors while pregnant gave birth to babies with hemolytic anemia. Naphthalene is also considered moderately toxic to several species of fish, water fleas, and Pacific oysters.4 o Mothballs are hazardous to young children. Mothballs can easily be mistaken for candy, or simply tempt young children to touch and play with them.

Herbicides
• Atrazine
o Atrazine is a chlorinated triazine systemic herbicide that is used to selectively control annual grasses and broadleaf weeds before they emerge. Pesticide products containing atrazine are registered for use on several agricultural crops, with the highest use on field corn, sweet corn, sorghum, and sugarcane.
o Atrazine is a widespread pollutant of groundwater and drinking water, has been linked to increased risk of cancer and endocrine and reproductive problems in people. The EPA 1 https://www.epa.gov/newsreleases/epa-takes-next-step-keep-chlorpyrifos-out-food-protecting-farmworkersand-childrens 2 https://www.epa.gov/endangered-species/biological-evaluation-chapters-chlorpyrifos-esa-assessment 3 https://www.epa.gov/sites/default/files/2016-09/documents/naphthalene.pdf 4 http://npic.orst.edu/factsheets/naphgen.html
Item C Page 7 Town Council Meeting March 28, 2023
ATTACHMENT A1
also reports that, “Based on the results from hundreds of toxicity studies on the effects of atrazine on plants and animals, over 20 years of surface water monitoring data,and higher tier aquatic exposure models, this risk assessment concludes that aquatic plant communities are impacted in many areas where atrazine use is heaviest, and there is potential chronic risk to fish, amphibians, and aquatic invertebrates in these same locations5,6
o Atrazine is the active ingredient in dozens of consumer pesticide products • Clopyralid
o Clopyralid is a toxic persistent herbicide used to control broadleaf weeds on lawns and turf, range, pastures, right-of ways, and on several crops. o Clopyralid has low toxicity if individuals accidentally eat, touch, or inhale residues and is considered relatively non-toxic to bees
o Clopyralid causes environmental and property damage through drift, runoff, use of treated plant material (such as straw or grass clippings) for mulch or compost, contaminated irrigation water, and urine or manure from animals consuming treated vegetation.
o Example product brands: Stinger, Transline, Reclaim, Curtail, Confront, Clopyr AG, Lontrel, Millennium Ultra, Millenium Ultra Plus and Redeem • Glyphosate
o Glyphosate is a widely used herbicide that can kill certain weeds and grasses.

Glyphosate works by blocking an enzyme essential for plant growth. The product is used primarily in agriculture, but also in forestry and lawn and garden care. o Products containing glyphosate may cause eye or skin irritation. People who breathed in spray mist from products containing glyphosate felt irritation in their nose and throat.

Swallowing products with glyphosate can cause increased saliva, burns in the mouth and throat, nausea, vomiting, and diarrhea.
o People may also be exposed to glyphosate through the food they eat. Many farmers use glyphosate products in their fields and orchards. It is used on GMO and non-GMA crops and gets into foods early in the food chain, before raw food is harvested and before it s processed.
o Cancer: The U.S. Environmental Protection Agency (EPA) says there s no evidence that glyphosate causes cancer in humans.” The European Food Safety Authority agrees. The World Health Organization s (WHO) International Agency for Research on Cancer, however, stated in 2015 that glyphosate is probably carcinogenic to humans.”7 o Example product brand: Roundup
• Picloram
o Picloram is a systemic herbicide used for general woody plant control. It also controls a wide range of broad-leaved weeds, but most grasses are resistant. o Picloram is not thought to be carcinogenic, but does cause eye and skin irritation. It is chemically very stable, so can be passed through animal feces to non-target plants. o No picloram products are registered for homeowner use or have residential applications.
o Example product brand: Tordon
5 https://www.regulations.gov/document/EPA-HQ-OPP-2013-0266-0315 6 https://www.panna.org/resources/atrazine
7 https://www.iarc.who.int/featured-news/media-centre-iarc-news-glyphosate/ Item C Page 8
Town Council Meeting March 28, 2023
• Triclopyr
o Triclopyr TEA and BEE products are used as selective herbicides to control broad leaf weeds and brush on a variety of sites-- rights-of-way, pasture and rangelands, forests, rice, and turf, including home lawns
o Triclopyr has low toxicity if individuals accidentally eat, touch, or inhale residues.

Triclopyr is slightly irritating to the eyes, nonirritating to the skin, and causes skin sensitization.
o Triclopyr acid was found to be slightly toxic to birds and practically non- toxic to mammals, insects, freshwater fish and invertebrates8
o Example product brands: Access, Crossbow, ET, Garlon, Grazon, PathFinder, Redeem, Rely, Remedy, and Turflon
• 2,4-D
o 2,4-D controls broadleaf weeds and is the most widely used herbicide in the world. It is used in many places including turf, lawns, rights-of-way, aquatic sites, forestry sites, and a variety of field, fruit and vegetable crops. It may also be used to regulate the growth of citrus plants.
o Pure 2,4-D is low in toxicity if eaten, inhaled, or if it contacts the skin, and some forms are low in toxicity to the eyes. However, the acid and salt forms of 2,4- D can cause severe eye irritation. People who drank products containing 2,4- D vomited, had diarrhea, headaches, and were confused or aggressive9
o 2,4-D generally has moderate toxicity to birds and mammals, is slightly toxic to fish and aquatic invertebrates, and is practically nontoxic to honeybees o Example product brands: Trimec, Triplet, End Run, and Q4 Plus Rodenticides
• Anticoagulant
o Second generation
▪ Brodifacoum
• Covered by EPA Risk Mitigation Decision for Ten Rodenticides • Brodifacoum works by preventing the clotting of blood by decreasing Vitamin K levels in the blood
• It was registered as a pesticide in 1979 in the United States although in 2008 it was made a restricted use pesticide by the Environmental Protection Agency
• Structurally it is similar to warfarin, but it is many times more potent, with the ability to cause severe bleeding in humans10
• Species of raptors which include owls, bald eagles, golden eagles, falcons, buzzards, and hawks, seem to be a group that are vastly affected by secondary poisoning due to brodifacoum11
• Example product brands: d-CON, Rattex, Talon
▪ Bromadiolone
• Covered by EPA Risk Mitigation Decision for Ten Rodenticides 8 https://www3.epa.gov/pesticides/chem_search/reg_actions/reregistration/fs_G-82_1-Oct-98.pdf 9 http://npic.orst.edu/factsheets/24Dgen.html
10 https://mmsl.cz/pdfs/mms/2013/01/03.pdf
11 https://duquark.com/2019/12/23/secondary-poisoning-and-ecological-effects-of-anticoagulant-rodenticides/ Item C Page 9
Town Council Meeting March 28, 2023
• Bromadiolone works by preventing the blood from clotting • To reduce the risk of accidental poisonings of children and wildlife, bromadiolone products are only intended for sale to professionals.

Most applications also require the use of a bait station to discourage access
• Bromadiolone can be highly toxic to humans and most mammals and birds, and is moderately to highly toxic to fish and other aquatic life12 • Example product brands: Resolv, Kaput Doom, Wilco soft bait ▪ Difethialone
• Covered by EPA Risk Mitigation Decision for Ten Rodenticides • Similar in mechanism to Bromadiolone and Brodifacoum
• High risk of secondary poisoning to birds and non-target mammals13 • Example product brands: Assasin, Contrax-D, Ditrac, and Eagles 7 Final Bit
▪ Difenacoum
• Covered by EPA Risk Mitigation Decision for Ten Rodenticides • Similar in mechanism to Difethiolone, Bromadiolone and Brodifacoum • Risk to wild animals and birds who eat this chemical directly, also high secondary risk to birds and non-target mammals who eat poisoned prey animals.14
• Example product brand: Victor V Multi-kill
o First generation
▪ Chlorophacinone
• Chlorophacinone is an anticoagulant rodenticide used to control rats, mice, voles, and other wild rodents. It is formulated as ready-to-use baits based on whole, cracked, or milled grain
• Covered by EPA Risk Mitigation Decision for Ten Rodenticides • Example product brands: Mouse Killer, Flatline, Final ▪ Diphacinone
• Diphacinone is most commonly used as a dry rodenticide bait to control common rodent pests, such as rats and mice.
• Covered by EPA Risk Mitigation Decision for Ten Rodenticides • Similar in toxicity to Chlorphacinone
• Example product brands: Ramik Mouser, Ramik Green, Motomco Tomcat
▪ Warfarin
• In addition to its use as a blood anticoagulant to kill rodents, Warfarin is also used to prevent blood clots from forming or growing larger in your blood and blood vessels
• Covered by EPA Risk Mitigation Decision for Ten Rodenticides • Warfarin was used widely as a rodenticide, but today its use is declining as many rodents have grown resistant to it.
• Example product brand: Kaput Rat and Mouse Bait
12 http://npic.orst.edu/factsheets/bromadgen.html
13 http://npic.orst.edu/factsheets/rodenticides.html
14 https://www3.epa.gov/pesticides/chem_search/reg_actions/registration/fs_PC-011901_01-Sep-07.pdf Item C Page 10 Town Council Meeting March 28, 2023
• Non-anticoagulant
o Bromethalin
▪ Bromethalin is not an anticoagulant but is a highly potent rodenticide that provides a lethal dose to rodents in a single feeding. Death occurs within 24 to 36 hours after ingestion
▪ Covered by EPA Risk Mitigation Decision for Ten Rodenticides ▪ Because only small amounts are needed to kill a rodent, a predator is unlikely to be harmed by consuming a bromethalin-poisoned rodent. This is good news for owls, hawks, and other rat-consuming wildlife. For dogs and cats, however, this is only a small advantage as pets commonly consume the insecticide directly.

Bromethalin has no antidote and bromethalin products are readily palatable to dogs and cats.
▪ With anticoagulant rodenticides becoming less available, bromethalin has captured the home rat poison market and has created a new hazard for pets to contend with.
▪ Example product brands: Fastrac Blox, Fastrac Pellets, and Talpirid Mole Bait o Cholecalciferol
▪ Rodenticides containing cholecalciferol (vitamin D3) are emerging as a popular consumer choice for eliminating rats and mice resistant to anticoagulant rodenticides. Ingestion of cholecalciferol rodenticides by dogs and cats can result in death.
▪ Covered by EPA Risk Mitigation Decision for Ten Rodenticides ▪ Example product brands: Quintox, True Grit Rampage, and Ortho Rat-B-Gone o Zinc phosphide
▪ Zinc phosphide is only used as a rodenticide. It is made into bait that will attract the pest, such as gophers, ground squirrels, or field mice. There are over 80 products containing zinc phosphide registered for use in the United States. ▪ Zinc phosphide is highly toxic in acute exposure to humans. It may be consumed accidentally or intentionally as means of suicidal or homicidal acts. Other routes of entry into the body could be via inhalation or through the skin. Zinc phosphide is hydrolysed by the gastric acid and is transformed into phosphine gas.
▪ Covered by EPA Risk Mitigation Decision for Ten Rodenticides ▪ Example product brand: Prozap Mole and Gopher
Molluscicide
• Sodium Ferric EDTA
o Sodium Ferric EDTA is a broad-spectrum molluscicide and the active ingredient in Slug & Snail Killer. The end-use product is a pelleted bait intended for use as a molluscicide in agricultural, nursery, greenhouse, and home and garden applications. o No risks to humans or the environment are expected when pesticide products containing pelargonic acid are used according to the label directions. o Low toxicity to dogs, and much safer than metaldehyde o Example product brand: Corry's Slug & Snail Killer
• Metaldehyde
Item C Page 11 Town Council Meeting March 28, 2023
o Metaldehyde is an ingredient in slug and snail killers. It is considered highly toxic to pets and other mammals and will be banned in the UK in 2023. o Metaldehyde can affect you when breathed in. Contact can irritate the skin and eyes.

Metaldehyde can cause nausea, vomiting, diarrhea and abdominal pain. Exposure to Metaldehyde can cause irritability, sleepiness, fever, muscle twitching, convulsions, coma, and death.
o Dogs, cats, birds, and other wildlife can all be affected by metaldehyde. Metaldehyde may cause signs of poisoning even when very small amounts are ingested. o Example product brands: Southern Ag Slug and Snail Bait, Deadline Slug & Snail Slayer.

Broad Spectrum
• Methyl Bromide
o Methyl bromide is an odorless, colorless gas used to control a wide variety of pests in agriculture and shipping, including fungi, weeds, insects, nematodes (or roundworms), and rodents.
o It has been banned in the US due to toxicity and damage to the ozone layer. Exception are made for Critical uses and Quarantine and pre-shipment uses. o In California, it was long used by strawberry growers but was phased out at the end of 2016, holding out until then by using the Critical Use exemption. o Example product brands: Brom-o-Gas, Bromomethane, Celfume, Embafume, Haltox, MB, MeBr, Methogas, Profume, Terr-o-Gas, and Zytox
• Sulfuryl Fluoride (also a rodenticide)
o Sulfuryl fluoride is a structural and commodity fumigant used to control a wide variety of pests, including termites, powder post beetles, old house borers, bedbugs, carpet beetles, moths, cockroaches, rats and mice
o It is a restricted-use pesticide, meaning it can only be used by a certified applicator or someone under the certified applicator s direct supervision. o Sulfuryl Fluoride can cause nausea, vomiting, diarrhea, abdominal pain and loss of appetite. Repeated high exposure can cause weakness, muscle twitching, seizures and convulsions. Sulfuryl Fluoride may damage the liver and kidneys. o Sulfuryl fluoride has replaced many uses of methyl bromide. Methyl bromide is classified as a Class I Ozone Depleting Substance” by the EPA. o Example product brand: Vikane Gas Fumigant
Item C Page 12 Town Council Meeting March 28, 2023
RESOLUTION NO. 2023 –

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WOODSIDE

BANNING PESTICIDES ON TOWN-OWNED PROPERTY AND DISCOURAGING THEIR

USE AND SALE BY WOODSIDE RESIDENTS AND BUSINESSES
WHEREAS, there is significant evidence illustrating the harmful and often fatal impacts of pesticides on wildlife; and
WHEREAS, there is scientific proof of the harmful health impacts of pesticides on children, the elderly, and other at-risk populations and pets; and
WHEREAS, there are safer and equally effective alternatives to pesticide use for pest control; and
WHEREAS, the Town of Woodside currently uses pesticide-free solutions on Town properties; and
WHEREAS, several other San Mateo County jurisdictions have adopted similar resolutions, including Portola Valley, Menlo Park, and Belmont.

NOW, THEREFORE, IT IS HEREBY RESOLVED, that the Town Council of the Town of Woodside:

1. Urges Woodside businesses to discontinue the sale of all pesticides;

2. Urges Woodside residents to avoid buying and utilizing pesticides and bait products, and instead use safer and more effective integrated pest management to control the pest population; and

3. Commits to use pesticide-free methods of rodent control on all Town properties.
* * * * * * *
Passed and adopted by the Town Council of the Town of Woodside, California, at a meeting thereof held on the 28th day of March, 2023, by the following vote of the members thereof:

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

Mayor of the Town of Woodside
ATTEST:

Clerk of the Town of Woodside
Item C Page 13 Town Council Meeting March 28, 2023

ATTACHMENT B
From: Woodside CA
To: Town Hall Email
Subject: Form submission from: Contact Us
Date: Tuesday, March 28, 2023 2:58:46 PM
[CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Submitted on Tuesday, March 28, 2023 - 2:58pm
Submitted by anonymous user: 108.233.47.228
Submitted values are:

First Name Christina
Last Name Romano Puckett
Email
Question/Comment
Dear Council Members
I urge you to vote yes on the pesticide-free resolution.

One reason is that Resident's gardeners are increasingly using herbicides along town right of ways.

My street, Rocky Way, has a dead border along both sides, sad for insects, birds, and ugly.

Thank you,
Christina
The results of this submission may be viewed at:
https://www.woodsidetown.org/node/7/submission/20301

TOWN COUNCIL MEETING
03/28/2023
DESK ITEM: ITEM C
From: melinda stoker
To: Town Hall Email
Cc: Kevin Bryant
Subject: Please support proposal to ban pesticides on town property & roads Date: Tuesday, March 28, 2023 4:33:51 PM
[CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

To the Mayor and Town Council Members of Woodside,
The Environment, Open Space, and Sustainability Committee has asked you to consider adopting a pesticide-free resolution to protect residents, their pets and livestock, and the wildlife in this area from the harmful and sometimes fatal affects of pesticides. There is wide availability of alternative solutions to repel, exclude, and deter pests that are effective and much healthier for our community.

We hope that this evening you vote to support this resolution and urge businesses to no longer sell pesticides and property owners to cease purchasing and using pesticides and/or to encourage their landscape management resources to refrain from using pesticides and weed killers such as Roundup, etc.

My understanding is that The Environment, Open Space, and Sustainability Committee will take responsibility for outreach and engagement efforts following resolution adoption.

We and other residents appreciate your support in protecting our health and the health of our livestock, pets, and the wonderful wildlife in this area.

Best regards,
Melinda and Tom Stoker
Woodside Ca 94062

TOWN OF WOODSIDE
Report to Town Council Agenda Item D
From: Kevin Bryant, Town Manager March 28, 2023
SUBJECT: REVIEW OF DRAFT 2023 SEWER RATE STUDY AND DIRECTION TO CONDUCT A PROPOSITION 218 PROTEST HEARING

RECOMMENDATION
It is recommended that the Town Council review the draft 2023 sewer rate study, take public comment, and direct staff to proceed with the Proposition 218 protest public hearing process to adopt sewer rates for the Town Center Sewer Assessment District for 2023-24 to 2027-28.

BACKGROUND AND DISCUSSION
The Town of Woodside provides sewer service to approximately 145 residential parcels and 22 non-residential accounts located within the Town Center Sewer Assessment District (TCSAD), formed in 1987.

Wastewater is transported from the Town first through pipelines owned by the Fair Oaks Sewer Maintenance District (operated by San Mateo County), then through Redwood City’s sewer system, and ultimately to Silicon Valley Clean Water (SVCW) for treatment and disposal.

Town Financial Policy #4 states that the TCSAD should be selfsupporting. To implement that policy, the Town has retained Bartle Wells Associates to prepare a sewer rate study to establish sewer rates for the next five years (2023-24 through 2027-28) (Attachment 1). Bartle Wells Associates will attend the March 28th meeting to review the sewer rate study.

NEXT STEPS
If directed by the Town Council, the Town will proceed with a Proposition 218 protest public hearing process. The Town will send a Notice of Public Hearing on the proposed sewer rate increases to all TCSAD ratepayers. The Notice will include the amount of the proposed rates and explain the process for their adoption. The protest hearing date will be set before the Town Council on May 23, 2023. In accordance with California law for setting utility rates, the rates will not be adopted if written protests are received by more than 50% of affected parcels with one written protest counted per parcel.

Protests must be received by the close of the public hearing.

CONCLUSION
Adoption of new sewer rates will ensure that the TCSAD continues to be financially self-supporting in compliance with Town Financial Policy #4.

Item D Page 1 Town Council Meeting March 28, 2023

ATTACHMENTS

1. 2023 Sewer Rate Study
Item D Page 2 Town Council Meeting March 28, 2023
2023 Sewer Rate Study
Town of Woodside
Town Center Sewer Assessment District
Draft 3/23/23
Item D Page 3
Town Council Meeting March 28, 2023
1 Town of Woodside
TCSAD Sewer Rate Study
Key Findings & Recommendations
Background
The Town of Woodside provides sewer service to 143 residential parcels and 22 non-residential accounts located within the Town Center Sewer Assessment District (TCSAD). Wastewater is transported from the Town first through pipelines owned by the Fair Oaks Sewer Maintenance District (operated by San Mateo County), then through Redwood City’s sewer system, and ultimately to Silicon Valley Clean Water (SVCW) for treatment and disposal. SVCW is currently in the process of completing an $800+ million capital improvement program to rebuild and upgrade its aging wastewater conveyance and treatment facilities.

The TCSAD is accounted for as a self-supporting enterprise and is funded primarily by sewer service charges. As such, the Town’s sewer rates need to be set at levels adequate to fund the TCSAD’s annual operating, maintenance, debt service, and capital funding needs. These costs include not only the costs of administration, operation, maintenance and rehabilitation of the Town’s local sewer collection system, but also contractual costs for wastewater conveyance and treatment including the Town’s share of debt service for SVCW’s capital program.

Historically, the Town adopted minimal to no rate increases for roughly 20 years from the early 1990s through 2012. Over this time the TCSAD’s residential sewer charges only increased by $1 per year and had fallen behind the cost of service. Over the past 10 years, the Town phased in a series of more substantial annual sewer rate increases to reflect the cost of providing service and support the TCSAD’s funding needs.

The Town last adopted sewer rate increases for the TCSAD in 2018. The adopted rates included five years of sewer rate increases effective July 1, 2018 through July 1, 2022. These rate increases have helped keep revenues in line with the escalating costs for wastewater conveyance and treatment and put the TSCAD on a stronger financial footing.

Item D Page 4
Town Council Meeting March 28, 2023
2 Rate Study Objectives
In 2023, the Town retained Bartle Wells Associates (BWA) to develop a new rate study with the goal of setting TCSAD sewer rates for the next five years. Key objectives of the study include:
 Develop updated financial projections to identify future funding needs for:
a) TCSAD wastewater collection system operations and maintenance b) Capital improvements to TCSAD’s aging infrastructure c) Wastewater conveyance provided by Fair Oaks Sewer Maintenance District d) The TCSAD’s allocated share of Redwood City’s costs for wastewater treatment at SVCW including the Town’s share of debt service paid by Redwood City for rebuilding SVCW’s treatment and conveyance facilities.
 Recommend sewer rates for the next five fiscal years designed to support future annual funding needs, recover the costs of providing service, and support balanced budgets.  Phase in rate increases gradually over the next five years to minimize the annual impact on TCSAD customers.
 Update the Town’s Grease Maintenance Charge and calculation of wastewater pumping costs.

This memo provides a summary of key findings and recommendations. Recommendations were developed with input from Town staff.

Sewer Rates
Most residential parcels served by the TCSAD pay a flat rate of $2,300 per year for sewer service.

Residential parcels within the Cañada Corridor Sanitary Sewer Service Area pay a slightly lower rate that reflects that the wastewater from this area flows by gravity and does not get pumped by the Town Center Pump Station, resulting in a lower cost of service.

Non-residential accounts pay volumetric rates based on metered water use and customer type, with higher rates for customers with higher-strength wastewater. Non-residential rates are subject to an annual minimum charge currently set at 80% the standard residential rate, to ensure all accounts contribute toward the Town’s fixed costs of providing service.

High-strength accounts (restaurants and markets) also pay a Grease Maintenance Surcharge to recover costs for additional pipeline flushing and maintenance needs caused predominantly by highstrength wastewater discharge.

Customers are billed annually for sewer service on the San Mateo County property tax rolls.

Item D Page 5
Town Council Meeting March 28, 2023
3 Modest Financial Challenges
The rate increases implemented over the past five years have substantially improved TCSAD finances.

Looking forward, the TSCAD is facing some modest financial challenges that can be supported by relatively small annual rate increases over the next five years. Key financial challenges include:
 Escalating costs for SVCW wastewater treatment and debt repayment – The TCSAD pays Redwood City for its share of SVCW operating and debt service based on its proportionate share of total wastewater flow from Redwood City to the SVCW treatment plant. SVCW’s wastewater treatment operating costs are projected to gradually increase in upcoming years. In addition, debt service issued to support SVCW’s $900+ million capital to rebuild and upgrade its aging wastewater conveyance and treatment facilities is projected to almost double over the next five years. Together, the TCSAD’s allocated costs for SVCW operations and debt service are projected to increase 40% over the next five years.
 Escalating costs for wastewater conveyance – Pursuant to a contract with San Mateo County, the TCSAD pays one-third of Fair Oaks Sewer Maintenance District’s rates in order to reimburse the County for wastewater conveyance through Fair Oaks SMD facilities. Fair Oaks SMD rates are projected to continue increasing in upcoming years.
 Capital improvements to aging TSCAD sewer system infrastructure – In 2022, the Town completed a condition assessment of the sewer force main between the Town Center pump station and the Chevron station. The cast iron force main was constructed in 1974, is reaching the end of its working life, and needs to be replaced. Other ongoing capital funding needs include spot repairs of damaged and/or leaking sections of sewer main pipelines throughout the sewer collection system.
 Ongoing inflationary cost increases – For financial planning purposes, financial projections assume the TSCAD’s operating costs escalate at the annual rate of 4%. Small annual rate adjustments are needed to keep up with cost inflation and keep rates from falling behind the cost of providing service.

Rate Projections
Bartle Wells Associates developed 10-year cash flow projections to identify future TSCAD funding needs and evaluate rate increases. The financial projections are based on the Town’s 2022/23 budget and incorporate the latest cost projections for SVCW/Redwood City, and Fair Oaks SMD.

Item D Page 6
Town Council Meeting March 28, 2023
4 Based on the cash flow projections, gradual $50 annual sewer rate increases are projected over the next five years to the Town’s residential customers. These $50 annual increases equate to slightly over 2% annual rate adjustments as shown on the table below. Non-Residential sewer usage charges would increase by the same roughly 2% annual adjustment as standard residential parcels.

Customers in the Cañada Corridor area, whose wastewater is not pumped, pay a discounted rate that excludes costs related to the Town Center Sewer Pump Station. These excluded costs include pump station operating and maintenance expenses as well as costs for repayment of a loan from the Town’s General Fund that financed a major upgrade of the pump station. This interfund loan accounts for a large portion of the discount provided to Cañada Corridor sewer customers. The interfund loan will be fully paid off in three years in fiscal year 2025/26 and will result in a corresponding reduction to the discount provided to Cañada Corridor. Customers in the Cañada Corridor will still benefit from discounted rates, however the discount will be substantially reduced.

Current
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

RESIDENTIAL
Fixed Annual Charge per Residential Parcel
Residential Parcels (Town Center Area) $2,300 $2,350 $2,400 $2,450 $2,500 $2,550 Cañada Corridor Sewer Service Area 1,670 1,719 1,769 1,941 2,335 2,379

NON-RESIDENTIAL
Usage Charge per hcf*
Retail Commercial, Institutions & Public 28.61 29.23 29.85 30.47 31.09 31.71 Restaurants & Bakeries 39.66 40.52 41.38 42.24 43.10 43.96 Food Markets 39.00 39.85 40.70 41.55 42.40 43.25
Grease Treatment (Rests/Ba keri es/Food Mkts) 3.00 3.10 3.22 3.35 3.48 3.62 Minimum Annual Charge 1,725 1,763 1,800 1,838 1,875 1,913 * 1 hcf = one hundred cubic feet or approximately 748 gallons.

Non-residential sewer usage charges are billed based on annualized water use from the prior winter period.

Projected Sewer Rates Effective
Projected TCSAD Sewer Rates
Current
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Fixed Annual Charge $2,300 $2,350 $2,400 $2,450 $2,500 $2,550 Annual Increase $50 $50 $50 $50 $50
% Increase 2.2% 2.1% 2.1% 2.0% 2.0%
Projected Sewer Rates Effective
Projected TCSAD Residential Sewer Rates
Item D Page 7
Town Council Meeting March 28, 2023

TSCAD Sewer Rate Study Tables
Item D Page 8
Town Council Meeting March 28, 2023
Town of Woodside
Sewer Flow Diagram
Town Center Sewer Assessment District
Pump
Station
Fair Oaks Sewer Maintenance District
Woodside pays 1/3 of Fair Oaks' charge per EDU for conveyance (Total Woodside flow est. at 38,600 gpd or 18,830 hcf)
Redwood City
Woodside is charged based on its share of total flow from Redwood City to the SVCW treatment plant
(Projected share of flow = about 0.54% but varies annually) Silicon Valley Clean Water (SVCW)
Regional Wastewater Treatment Plant
SVCW is in process of completing a $1 billion capital program to rebuild its aging treatment plant and 8-mile conveyance pipeline Cañada Corridor
27 Residential Units
Est. 4,050 gpd or 1,975 hcf
Other Town Residential
121 Residential Units
Est. 18,150 gpd or 8,855 hcf
Town Center Commercial
22 Commercial Parcels
Est. 16,400 gpd or 8,000 hcf
Treated wastewater effluent is mostly discharged to the San Francisco Bay but a portion is converted to recycled water for non-potable use in Redwood City.

Item D Page 9
Town Council Meeting March 28, 2023
Table 1
Town of Woodside
Sewer Rates
2018/19 2019/20 2020/21 2021/22 2022/23

RESIDENTIAL
Fixed Annual Charge per Residential Parcel
Residential Parcels $1,750 $1,900 $2,050 $2,200 $2,300
Cañada Corridor Sanitary Sewer Service Area 1,353 1,353 1,420 1,570 1,670

NON-RESIDENTIAL
Usage Charge per hundred cubic feet (hcf)
Retail Commercial, Institutions, Public 21.76 23.63 25.50 27.37 28.61 Restaurants & Bakeries 30.17 32.76 35.35 37.94 39.66
Food Markets 29.68 32.22 34.76 37.30 39.00
Grease Treatment 2.56 2.66 2.77 2.88 3.00
Applies to Restaurants, Bakeries & Food Markets
Minimum Annual Charge 1,313 1,425 1,538 1,650 1,725
____________
* 1 hcf = one hundred cubic feet or approximately 748 gallons.

Non-residential sewer usage charges are billed based on annualized water use from the prior wet-weather period.

Item D Page 10 Town Council Meeting March 28, 2023
425 433 405 405 432 426 426 426 426 426 426 426 426 426 426 426 426 426 426 830 9801,1601,3501,450 1,7501,9002,0502,200 2,300 $0
$500
$1,000
$1,500
$2,000
$2,500 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Town of Woodside
Residential Sewer Rate History
Annual Charge per Residential Parcel
1994/95 Charge + 6.22% Escalation
Item D Page 11 Town Council Meeting March 28, 2023
Table 2
Town of Woodside
Sewer Accounts & Wastewater Flow
2018/19 2019/20 2020/21 2021/22 2022/23 Projected

RESIDENTIAL
Number of Parcels
Cañada Corridor Sanitary Sewer Service Area 26 26 26 27 27 27 All Other Residential Parcels 118 117 118 118 121 121
Total 144 143 144 145 148 148
Est. Average Sewer Flow per Residence (gpd)1 150 150 150 150 150 150 Residential Sewer Flow (hcf)
Cañada Corridor Sanitary Sewer Service Area 1,903 1,903 1,903 1,976 1,976 1,976 All Other Residential Parcels 8,636 8,563 8,636 8,636 8,856 8,856 Total (hcf) 10,539 10,466 10,539 10,613 10,832 10,832
Total (gpd) 21,600 21,450 21,600 21,750 22,200 22,200

TCSAD NON-RESIDENTIAL
Number of Metered Accounts2,3
Retail Commercial, Institutional & Public 17.31 17.31 17.31 17.31 17.31 17.31 Restaurants & Bakeries 3.94 3.94 3.94 3.94 3.94 3.94
Food Markets 0.75 0.75 0.75 0.75 0.75 0.75
Total 22.00 22.00 22.00 22.00 22.00 22.00
Billed Sewer Consumption (hcf) based on water use from wet-weather months of prior fiscal year Estimated Retail Commercial, Institutional & Public 4,503 2,436 3,426 4,264 5,082 4,000 Restaurants & Bakeries 4,036 3,579 3,583 1,835 3,657 3,500 Food Markets 609 693 651 549 465 500
Non-Residential Sewer Flow (hcf) 9,148 6,708 7,660 6,648 9,204 8,000 Non-Residential Sewer Flow (gpd) 18,748 13,748 15,699 13,625 18,863 16,396 Total Estimated Sewer Flow (hcf) Excludes I/I 19,687 17,174 18,199 17,261 20,036 18,832 Total Estimated Sewer Flow (gpd) Excludes I/I 40,348 35,198 37,299 35,375 41,063 38,596 Total Estimated Sewer Flow (mgd) Excludes I/I 0.0403 0.0352 0.0373 0.0354 0.0411 0.0386 1 Estimated based on metered flow data from the Town's sewer pump station. 2 Includes two mixed use meters for which water use is apportioned between two customer classes. 3 Some parcels have more than one metered account.

Item D Page 12 Town Council Meeting March 28, 2023
Table 3
Town of Woodside
Flow and Billing History with Redwood City
Wastewater Treatment Charge
Payment for
Fiscal Year Payment
Woodside Flow
Est. (MGD)
Redwood City
Flow (MGD)
Woodside % of
Total Flow
Total RC
SVCW Payment
Sewer
Treatment
Rental
Capacity
Transmission
Fee
Semi-Annual
Payment
Total Annual
Payment
FY16-17 1st 0.0391 6.39 0.61% $ 27,815.19 $ 180.68 $ 295.00 $ 28,290.87 2nd 0.0364 8.01 0.46% $ 11,629,316 $ 25,101.87 $ 409.66 $ 295.00 $ 25,806.52 $ 54,097.39 FY17-18 1st 0.0364 8.01 0.46% $ 26,458.53 $ 295.17 $ 295.00 $ 27,048.70 2nd 0.0327 7.23 0.45% $ 12,566,859 $ 30,433.89 $ 715.30 $ 295.00 $ 31,444.19 $ 58,492.89 FY18-19 1st 0.0327 7.23 0.45% $ 28,446.21 $ 505.24 $ 295.00 $ 29,246.44 2nd 0.0365 7.68 0.48% $ 12,444,746 $ 30,683.52 $ 1,413.36 $ 295.00 $ 32,391.88 $ 61,638.31 FY19-20 1st 0.0365 7.68 0.48% $ 29,564.86 $ 959.30 $ 295.00 $ 30,819.16 2nd 0.0300 7.11 0.42% $ 13,328,614 $ 26,620.08 $ 365.06 $ 295.00 $ 27,280.14 $ 58,099.30 FY20-21 1st 0.0300 7.11 0.42% $ 28,092.47 $ 662.18 $ 295.00 $ 29,049.65 2nd 0.0300 7.03 0.43% $ 14,393,356 $ 33,248.76 $ (296.42) $ 295.00 $ 33,247.34 $ 62,296.99 FY21-22 1st 0.0300 7.03 0.43% $ 30,670.62 $ 182.88 $ 295.00 $ 31,148.50 2nd 0.0350 7.07 0.49% $ 16,558,701 $ 51,189.25 $ 110.47 $ 295.00 $ 51,594.72 $ 82,743.22 FY22-23 1st 0.0350 7.07 0.49% $ 40,929.94 $ 146.67 $ 295.00 $ 41,371.61 2nd Projected 0.0400 7.20 0.56% $ 18,270,655 $ 60,573.70 $ 1,853.33 $ 295.00 $ 62,722.03 $ 104,093.64 SVCW Debt Repayment
Payment for
Fiscal Year Payment
Woodside Flow
Est. (MGD)
Redwood City
Flow (MGD)
Woodside % of
Total Flow
Total RC
Debt Service
Woodside
Debt Allocation
FY16-17 Annual 0.0363 8.01 0.45% $ 5,701,084 $ 25,871
FY17-18 Annual 0.0327 7.23 0.45% $ 5,675,766 $ 25,695
FY18-19 Annual 0.0365 7.68 0.48% $ 10,218,566 $ 48,578
FY19-20 Annual 0.0300 7.11 0.42% $ 10,885,435 $ 45,886
FY20-21 Annual 0.0300 7.03 0.43% $ 10,344,942 $ 44,088
FY21-22 Annual 0.0350 7.07 0.49% $ 10,297,242 $ 50,906
FY22-23 Annual (Est.) 0.0400 7.20 0.56% $ 10,334,733 $ 57,415 Note: Woodside is billed in arrears for each payment.

Item D Page 13 Town Council Meeting March 28, 2023
Table 4
Town of Woodside
Projected Payments to Redwood City & Fair Oaks SMD
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33

SVCW OPERATING & CAPITAL EXPENSES (REDWOOD CITY)
Operating & Maintenance Expenses $16,313,000 $16,960,000 $17,640,000 $18,350,000 $19,080,000 $19,850,000 $20,640,000 $21,470,000 $22,320,000 $23,220,000 $24,150,000 Capital Outlay & Other Non-Operating 682,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000 3,890,000 4,130,000 4,370,000 Cash-Funded Capital Improvements 0 0 0 6,870,000 1,800,000 1,430,000 1,090,000 1,090,000 0 0 0 Reserve Contributions 1,276,000 1,520,000 1,770,000 2,010,000 2,260,000 2,500,000 2,750,000 3,000,000 80,000 90,000 90,000 Subtotal 18,271,000 19,210,000 20,140,000 27,960,000 23,870,000 24,510,000 25,210,000 26,290,000 26,290,000 27,440,000 28,610,000

SVCW DEBT SERVICE (REDWOOD CITY)
Wastewater Revenue Bonds 9,420,000 9,410,000 9,410,000 9,410,000 9,410,000 9,410,000 9,400,000 9,390,000 9,030,000 9,020,000 9,010,000 SRF Loans 920,000 920,000 4,320,000 4,320,000 4,320,000 4,320,000 4,320,000 4,320,000 4,320,000 4,320,000 4,320,000 Line of Credit Interest 0 900,000 0 0 0 0 0 0 0 0 0
WIFIA Loans 0 0 0 0 0 5,400,000 5,400,000 6,130,000 6,130,000 6,130,000 6,130,000 Subtotal 10,340,000 11,230,000 13,730,000 13,730,000 13,730,000 19,130,000 19,120,000 19,840,000 19,480,000 19,470,000 19,460,000 Total SVCW Charges to Redwood City 28,611,000 30,440,000 33,870,000 41,690,000 37,600,000 43,640,000 44,330,000 46,130,000 45,770,000 46,910,000 48,070,000 Redwood City Flow to SVCW (mgd) 7.20 7.20 7.20 7.20 7.20 7.20 7.20 7.20 7.20 7.20 7.20

PROJECTED WOODSIDE PAYMENTS TO REDWOOD CITY (WITHOUT PAYMENT LAG) Estimated TCSAD Flow (gpd) 40,000 38,600 38,600 38,600 38,600 38,600 38,600 38,600 38,600 38,600 38,600 Est. % of Total Flow to SVCW 0.56% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% Projected LAIF quarterly rate Dec-31 2.07% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Projected LAIF quarterly rate Jun-30 2.75% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Treatment & Disposal Fee $101,506 $102,987 $107,973 $149,897 $127,970 $131,401 $135,154 $140,944 $140,944 $147,109 $153,381 Sewer Transmission Fee 590 590 590 590 590 590 590 590 590 590 590 Capacity Rental ($2.18/gpd x LAIF rate) 2,398 2,524 2,524 2,524 2,524 2,524 2,524 2,524 2,524 2,524 2,524 Subtotal 104,494 106,101 111,087 153,011 131,084 134,515 138,268 144,058 144,058 150,223 156,496 SVCW Debt Service Contribution 57,444 60,205 73,608 73,608 73,608 102,558 102,504 106,364 104,434 104,381 104,327 Redwood City Loan Repayment 7,000 6,610 6,430 6,250 6,080 0 0 0 0 0 0 Total Charges from Redwood City 168,938 172,917 191,125 232,869 210,772 237,073 240,772 250,422 248,492 254,604 260,823

PROJECTED WOODSIDE PAYMENTS TO REDWOOD CITY (WITH PAYMENT LAG) Payment (typically billed October) $52,000 $63,494 $53,855 $58,037 $97,467 $54,579 $68,973 $71,010 $74,924 $72,029 $78,194 Final calculated payment from prior year
Payment (typically billed April) 41,000 52,247 53,051 55,544 76,506 65,542 67,258 69,134 72,029 72,029 75,112 Set at half of prior year total payment
Subtotal with Payment Lag 93,000 115,740 106,905 113,580 173,973 120,121 136,231 140,144 146,953 144,058 153,306 Debt Service Contribution 51,000 57,444 60,205 73,608 73,608 73,608 102,558 102,504 106,364 104,434 104,381 Redwood City Loan Repayment 6,500 6,600 6,400 6,300 6,100 0 0 0 0 0 0 Subtotal Debt Service 57,500 64,044 66,605 79,908 79,708 73,608 102,558 102,504 106,364 104,434 104,381 Total Payments in Fiscal Year 135,000 168,291 183,150 189,306 214,250 236,618 224,394 240,612 249,404 251,387 251,522 Annual Change % 24.7% 8.8% 3.4% 13.2% 10.4% -5.2% 7.2% 3.7% 0.8% 0.1%

PROJECTED FAIR OAKS SMD WASTEWATER TRANSPORTATION CHARGE Projected Rate Increase Adopted Adopted 8% 8% 8% 5% 5% 5% 5% 5% 5% Fair Oaks SMD Rate per RUE (projected) 985 1,015 1,096 1,184 1,279 1,343 1,410 1,480 1,554 1,632 1,713 Residential Unit Equivalents (RUEs) 148 148 148 148 148 148 148 148 148 148 148 Non-Residential RUEs 82 82 82 82 82 82 82 82 82 82 82
Wastewater Transmission Charges 75,517 77,817 84,042 90,765 98,027 102,928 108,074 113,478 119,152 125,110 131,365 Item D Page 14 Town Council Meeting March 28, 2023
Table 5 - Woodside Town Center Sewer Assessment District Cash Flow Projections Working Draft 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Residential Sewer Charge $2,300 $2,350 $2,400 $2,450 $2,500 $2,550 $2,600 $2,650 $2,700 $2,750 $2,800 Residential Sewer Charge, Canada 1,670 1,719 1,769 1,941 2,335 2,379 2,430 2,480 2,530 2,580 2,630 Operating Cost Escalation 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Interest Earnings Rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% TCSAD % of Redwood City flow to SBSA 0.56% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% Fair Oaks SMD Annual Charge per ERU $985 $1,015 $1,096 $1,184 $1,279 $1,343 $1,410 $1,480 $1,554 $1,632 $1,713 Beginning Fund Reserves $552,600 $609,000 $598,000 $587,000 $579,000 $583,000 $640,000 $696,000 $741,000 $768,000 $790,000

REVENUES
Sewer Service Charges
Canada Corridor Residential 45,100 46,400 47,700 52,400 63,100 64,200 65,600 67,000 68,300 69,700 71,000 Town Center & Other Residential 278,300 284,400 290,400 296,500 302,500 308,600 314,600 320,700 326,700 332,800 338,800 Town Center Non-Residential 308,600 278,700 284,600 290,500 296,400 302,300 308,200 314,200 320,100 326,000 331,900 Grease Maintenance Surcharges 12,400 12,400 12,840 13,280 13,760 14,240 14,800 15,400 16,000 16,640 17,320 ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ Subtotal 644,400 621,900 635,540 652,680 675,760 689,340 703,200 717,300 731,100 745,140 759,020 Property Taxes 64,000 65,000 66,000 67,000 68,000 69,000 70,000 71,000 72,000 73,000 74,000 Interest Income 11,100 12,200 12,000 11,700 11,600 11,700 12,800 13,900 14,800 15,400 15,800 Connection Fees/Other - - - - - - - - - - - ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ Total Revenues 719,500 699,100 713,540 731,380 755,360 770,040 786,000 802,200 817,900 833,540 848,820 Loan from General Fund

EXPENSES
Operating & Maintenance
Salaries & Benefits 45,000 47,300 49,700 52,200 54,800 57,500 60,400 63,400 66,600 69,900 73,400 Overhead Charges 60,000 63,000 66,200 69,500 73,000 76,700 80,500 84,500 88,700 93,100 97,800 Wastewater Treatment (Redwood City) 93,000 115,700 106,900 113,600 174,000 120,100 136,200 140,100 147,000 144,100 153,300 Share of SVCW Debt & RC Loan (Redwood City) 57,500 64,000 66,600 79,900 79,700 73,600 102,600 102,500 106,400 104,400 104,400 Wastewater Transmission (Fair Oaks SMD) 75,500 77,800 84,000 90,800 98,000 102,900 108,100 113,500 119,200 125,100 131,400 Contract Maintenance Services 95,000 99,800 104,800 110,000 115,500 121,300 127,400 133,800 140,500 147,500 154,900 Utilities/Other 10,700 12,000 12,600 13,200 13,900 14,600 15,300 16,100 16,900 17,700 18,600 ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ Subtotal 436,700 479,600 490,800 529,200 608,900 566,700 630,500 653,900 685,300 701,800 733,800 Capital & Other Non-Operating
Capital Improvements (w/ 3% escalation) 126,300 130,100 134,000 138,000 142,100 146,400 100,000 103,000 106,100 109,300 112,600 Loan Repayment to General Fund 100,000 100,000 100,000 72,400 - - - - - - - ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ Subtotal 226,300 230,100 234,000 210,400 142,100 146,400 100,000 103,000 106,100 109,300 112,600 Total Expenses 663,000 709,700 724,800 739,600 751,000 713,100 730,500 756,900 791,400 811,100 846,400 Revenues Less Expenses 56,500 (10,600) (11,260) (8,220) 4,360 56,940 55,500 45,300 26,500 22,440 2,420 Ending Fund Reserves 609,100 598,400 586,740 578,780 583,360 639,940 695,500 741,300 767,500 790,440 792,420 Item D Page 15 Town Council Meeting March 28, 2023
105,000 110,300 115,900 121,700 127,800 134,200 140,900 147,900 155,300 163,000 105,700 111,800 117,400 123,200 129,400 135,900 142,700 149,900 157,400 165,200 93,000 115,700 106,900 113,600 174,000 120,100 136,200 140,100 147,000 144,100
57,500
64,000 66,600 79,900
79,700
73,600
102,600 102,500 106,400 104,400
75,500
77,800 84,000
90,800
98,000
102,900
108,100 113,500 119,200 125,100
126,300
130,100 134,000
138,000
142,100
146,400
100,000 103,000
106,100 109,300
100,000
100,000 100,000 72,400
0 200,000
400,000
600,000
800,000
1,000,000
1,200,000 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2031/32 2032/33 Loan Repymt to Gen Fund
Capital Improvement Projects
WW Transmission (FOSMD)
SVCW Debt Repayment
WW Treatment (RC/SVCW)
Contract Maint/Other
Staffing & Overhead
Revenues
Town Center Sewer Assessment District
Historical & Projected Sewer Revenues & Expenses
Item D Page 16 Town Council Meeting March 28, 2023
Table 6
Town of Woodside
Projected Sewer Rates
Current
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

RESIDENTIAL
Fixed Annual Charge per Residential Parcel
Residential Parcels (Town Center Area) $2,300 $2,350 $2,400 $2,450 $2,500 $2,550 Cañada Corridor Sewer Service Area 1,670 1,719 1,769 1,941 2,335 2,379

NON-RESIDENTIAL
Usage Charge per hcf*
Retail Commercial, Institutions & Public 28.61 29.23 29.85 30.47 31.09 31.71 Restaurants & Bakeries 39.66 40.52 41.38 42.24 43.10 43.96 Food Markets 39.00 39.85 40.70 41.55 42.40 43.25
Grease Treatment (Rests/Bakeries/Food Mkts) 3.00 3.10 3.22 3.35 3.48 3.62 Minimum Annual Charge 1,725 1,763 1,800 1,838 1,875 1,913 * 1 hcf = one hundred cubic feet or approximately 748 gallons.

Non-residential sewer usage charges are billed based on annualized water use from the prior winter period.

Projected Sewer Rates Effective
Projected TCSAD Sewer Rates
Item D Page 17 Town Council Meeting March 28, 2023
425 433 405 405 432 426 426 426 426 426 426 426 426 426 426 426 426 426 426 8309801,1601,3501,4501,7501,9002,0502,200 2,300 2,350 2,400 2,450 2,500 2,550 $0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Town of Woodside
Historical & Projected Annual Residential Sewer Charges Historical Charges
1994/95 Charge + 5.52% Escalation
Projected
Charges
Current
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Fixed Annual Charge $2,300 $2,350 $2,400 $2,450 $2,500 $2,550 % Increase 2.2% 2.1% 2.1% 2.0% 2.0%
Projected Sewer Rates Effective
Item D Page 18 Town Council Meeting March 28, 2023

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WOODSIDE

TEMPORARILY PROHIBITING TRUCKS LONGER THAN TWENTY-FIVE FEET FROM

USING OLD LA HONDA ROAD FOR THE SAFETY AND PROTECTION OF THOSE

USING THE ROAD
WHEREAS, Caltrans closed portions of Highway 84 on March 11, 2023, due to storm-related damage to the road; and
WHEREAS, the closure of Highway 84 left Old La Honda Road as the only route available to traffic passing between Skyline Boulevard and Portola Road; and WHEREAS, Old La Honda Road is a small road that is not suitable for regular use by larger trucks; and
WHEREAS, through Section 71.05 of the Woodside Municipal Code, the Town has prohibited trucks larger than 35 feet in length or 13 feet in height from using Old La Honda Road without first obtaining a Transportation Permit from the Town; and WHEREAS, on the afternoon of March 23, 2023, a heavy-duty tow truck overturned on Old La Honda Road and was in danger of rolling into the ravine near 736 Old La Honda Road; and
WHEREAS, additional storms were forecasted for the week of March 26, 2023, raising the likelihood that the overturned truck may have fallen into the ravine; and WHEREAS, on March 26, 2023, the Town permitted a rotator tow truck to recover the overturned truck, which caused Old La Honda Road to be closed for the full day and caused damage to the roadway; and
WHEREAS, the damage caused to Old La Honda Road has made it increasingly dangerous for large vehicles to safely travel; and
WHEREAS, it is imperative that Old La Honda remain open and safely passable for those that live and pass through the area, particularly because of the closure of Highway 84; and
WHEREAS, California Vehicle Code section 21101(e) allows the Town to temporarily close a portion of any street when it finds, by resolution, that “the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing”; and
WHEREAS, the danger of another truck overturning or causing damage to the roadway on Old La Honda Road poses a safety risk to other drivers accessing the road and those who rely on Old La Honda Road for ingress and egress from their homes; and
WHEREAS, in the interest of protecting the health and safety of those using Old La Honda Road, the Town Manager directed on March 27, 2023, that on an emergency basis the Town’s existing prohibition of trucks longer than 35 feet using Old La Honda would be applied to trucks longer than 25 feet; and
WHEREAS, Bay Area Transportation Services (BATS) flaggers were stationed at both the Skyline Boulevard and Portola Road intersections to notify and enforce the emergency restriction against trucks over 25 feet entering onto Old La Honda Road; and
WHEREAS, California Government Code section 54954.2(b)(2) allows the Town Council to take action on items of business not appearing on the posted agenda upon a 2/3 vote that there is a need to take immediate action on an issue that came to the Town’s attention after the agenda was posted; and
WHEREAS, prior to considering this resolution, the Town Council voted by more than 2/3 to consider this resolution as an item that required immediate action and that the damage to Old La Honda Road requiring this action occurred after the agenda for the Town Council’s regular meeting of March 28, 2023 had been posted; and WHEREAS, the Town Council finds that, in the interest of protecting the safety of those using Old La Honda Road, the Town must temporarily restrict trucks longer than 25 feet from accessing Old La Honda Road.

NOW, THEREFORE, BE IT RESOLVED by the Town Council that, on a temporary basis, the prohibition against large vehicles using Old La Honda Road under Woodside Municipal Code section 71.06 shall apply to vehicles exceeding 25 feet in length. The existing exceptions for public utility vehicles, emergency vehicles, Townowned vehicles, and vehicles that have received a Transportation Permit from the Town shall apply to the temporary restriction.

BE IT FURTHER RESOLVED that this temporary restriction shall continue until rescinded by resolution once repairs are completed to Old La Honda Road which would allow 35-foot-long trucks.

BE IT FURTHER RESOLVED that the Town shall erect signs at the Skyline Boulevard and Portola Road intersections of Old La Honda Road, which shall provide notice of this temporary restriction, and which shall remain displayed until the restriction is rescinded or ended.

PASSED AND ADOPTED as a resolution of the Town Council of the Town of Woodside at the regular meeting held on the 28th day of March, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
__________________, MAYOR
ATTEST:
______________________________

CLERK OF THE TOWN OF WOODSIDE