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HomeMy WebLinkAboutCC_2022_01_25_AgendaPacket CITY OF ATASCADERO CITY COUNCIL AGENDA In accordance with City Council Resolution No. 2022-001 and the requirements of AB 361, the City Council Meeting will not be physically open to the public and City Council Members will be teleconferencing into the meeting. HOW TO OBSERVE THE MEETING: To maximize public safety while still maintaining transparency and public access, the meeting will be live-streamed on SLO-SPAN.org, on Spectrum cable Channel 20 in Atascadero, and on KPRL Radio 1230AM and 99.3FM. The video recording of the meeting will repeat daily on Channel 20 at 1:00 am, 9:00 am, and 6:00 pm and will be available through the City’s website or by visiting https://us02web.zoom.us/webinar/register/WN_ZwJ7a031S3KXauEym9ehaA. HOW TO SUBMIT PUBLIC COMMENT: Members of the public are highly encouraged to participate in live public comment through the Zoom platform using the link above or by calling 805-538-2888 to listen and provide public comment via phone. If you wish to comment but not via a live platform, please email public comments to cityclerk@atascadero.org by 12:00 pm on the day of the meeting. Such email comments must identify the Agenda Item Number in the subject line of the email. The comments will be forwarded to the City Council and made a part of the administrative record. If a comment is received after the deadline for submission but before the close of the meeting, the comment will still be included as a part of the administrative record of the meeting but will be forwarded to the City Council the next business day. Please note, email comments will not be read into the record. AMERICAN DISABILITY ACT ACCOMMODATIONS: Any member of the public who needs accommodations should contact the City Clerk’s Office at cityclerk@atascadero.org or by calling 805-470-3400 at least 48 hours prior to the meeting or time when services are needed. The City wil l use their best efforts to provide reasonable accommodations to afford as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests. City Council agendas and minutes may be viewed on the City's website: www.atascadero.org. Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection on our website, www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The Minutes of this meeting will reflect these numbers. All documents submitted by the public during Council meetings that are made a part of the record or referred to in their statement will be noted in the Minutes and available for review by contacting the City Clerk's office. All documents will be available for public inspection by appointment during City Hall business hours. Page 1 of 215 CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, January 25, 2022 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California REGULAR SESSION – CALL TO ORDER: 6:00 P.M. PLEDGE OF ALLEGIANCE: Mayor Pro Tem Newsom ROLL CALL: Mayor Moreno Mayor Pro Tem Newsom Council Member Bourbeau Council Member Dariz Council Member Funk APPROVAL OF AGENDA: Roll Call Recommendation: Council: 1. Approve this agenda; and 2. Waive the reading in full of all ordinances appearing on this agenda, and the titles of the ordinances will be read aloud by the City Clerk at the first reading, after the motion and before the City Council votes. CLOSED SESSION – REPORT (IF ANY) a. January 11, 2022 PRESENTATIONS: None. City Council Regular Session: 6:00 P.M. City Council Closed Session: Immediately following Regular Session Page 2 of 215 A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non-controversial by City staff and will be approved by one motion if no member of the Council or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the Consent Calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the item before action is taken.) 1. City Council Draft Action Minutes – January 11, 2022 ▪ Recommendation: Council approve the January 11, 2022 Draft City Council Regular Meeting Minutes. [City Clerk] 2. December 2021 Accounts Payable and Payroll ▪ Fiscal Impact: $3,783,926.36 ▪ Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for December 2021. [Administrative Services] 3. September 2021 Investment Report ▪ Fiscal Impact: None. ▪ Recommendation: Council receive and file the City Treasurer’s report for quarter ending September 30, 2021. [City Treasurer] UPDATES FROM THE CITY MANAGER: (The City Manager will give an oral report on any current issues of concern to the City Council.) COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Comments will be allowed for the entire 30-minute period so if the final speaker has finished before the 30 minute period has ended and a member of the public wishes to make a comment after the Council has commenced another item, the member should alert the Clerk within the 30 minute period of their desire to make a comment and the Council will take up that comment upon completion of the item which was commenced. Any members of the public who have questions or need information may contact the City Clerk’s Office, between the hours of 8:30 a.m. and 5:00 p.m. at (805) 470- 3400, or cityclerk@atascadero.org.) B. PUBLIC HEARINGS: Page 3 of 215 mitigation, including replanting on site. [Community Development] previously located at 5955 East Mall, subject to conditions of approval and the removal of one, 55-inch DBH, hazardous Heritage Coast Live Oak ▪ Recommendation: Council adopt Draft Resolution ratifying staff’s approval of ▪ Fiscal Impact: None. Ratification of Approval of Hazardous Tree Removal1. C. MANAGEMENT REPORTS: 1. Fiscal Year 2020-2021 Audit ▪ Fiscal Impact: None. ▪ Recommendation: Council review and accept the financial audit for the period ended June 30, 2021. [Administrative Services] 2. Staffing for Adequate Fire and Emergency Response (SAFER) Grant ▪ Fiscal Impact: There is no fiscal impact in applying for the SAFER grant. If awarded the City would receive funding for three firefighters for three years at an estimated $1.5 million. ▪ Recommendation: Council authorize the Fire Chief to apply for and City Manager to execute a grant contract for a SAFER grant that would reimburse the City for the cost of three additional firefighters for three years. [Fire Department] D. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. The following represent standing committees. Informative status reports will be given, as felt necessary): Mayor Moreno 1. City Selection Committee 2. County Mayors Round Table 3. Regional Economic Action Coalition (REACH) 4. SLO Council of Governments (SLOCOG) 5. SLO Regional Transit Authority (RTA) Mayor Pro Tem Newsom 1. City / Schools Committee 2. Design Review Committee 3. League of California Cities – Council Liaison 4. Visit SLO CAL Advisory Committee Council Member Bourbeau 1. City of Atascadero Finance Committee 2. City / Schools Committee 3. Integrated Waste Management Authority (IWMA) 4. SLO County Water Resources Advisory Committee (WRAC) Council Member Dariz 1. Air Pollution Control District 2. California Joint Powers Insurance Authority (CJPIA) Board 3. City of Atascadero Finance Committee Council Member Funk 1. Atascadero Basin Ground Water Sustainability Agency (GSA) 2. Design Review Committee 3. Homeless Services Oversight Council Page 4 of 215 E. INDIVIDUAL DETERMINATION AND / OR ACTION: (Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.) 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager F. RECESS REGULAR MEETING TO CLOSED SESSION COUNCIL CLOSED SESSION: 1. CLOSED SESSION -- PUBLIC COMMENT 2. COUNCIL LEAVES TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER a. Conference with Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): 1 potential case – Bill White sick leave b. Conference with Legal – Anticipated Litigation Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): 1 potential case – California Voting Rights Act 4. CLOSED SESSION – ADJOURNMENT 5. COUNCIL RETURNS 6. CLOSED SESSION – REPORT (IF ANY) Announcement(s) of any reportable action(s) taken in Closed Session that occur(s) after the recess of Regular Session will be made at the beginning of the next Regular City Council meeting as Closed Session is not recorded or videotaped. Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that person may be limited to raising those issues addressed at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this public hearing will be distributed to the Council and available for review in the City Clerk's office. Page 5 of 215 ITEM NUMBER: A-1 DATE: 01/25/22 Atascadero City Council January 11, 2022 Page 1 of 5 CITY OF ATASCADERO CITY COUNCIL DRAFT MINUTES Tuesday, January 11, 2022 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California REGULAR SESSION – CALL TO ORDER: 6:00 P.M. Mayor Moreno called the meeting to order at 6:0 1 p.m. and Council Member Bourbeau led the Pledge of Allegiance. ROLL CALL: Present: By Teleconference - Council Members Bourbeau, Dariz, and Funk, Mayor Pro Tem Newsom, and Mayor Moreno City Council Regular Session: 6:00 P.M. Successor Agency to the Community Immediately following Redevelopment Agency of Atascadero: conclusion of the City Council Regular Session Public Financing Authority: Immediately following conclusion of the Successor Agency to the Community Redevelopment Agency of Atascadero Meeting City Council Closed Session: Immediately following the conclusion of the Public Financing Authority Meeting Page 6 of 215 ITEM NUMBER: A-1 DATE: 01/25/22 Atascadero City Council January 11, 2022 Page 2 of 5 Absent: None Others Present: None Staff Present: By Teleconference – City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Community Development Director Phil Dunsmore, Fire Chief Casey Bryson, Police Chief Bob Masterson, Public Works Director Nick DeBar, City Attorney Brian Pierik, Deputy City Manager/City Clerk Lara Christensen, and IT Manager Luke Knight APPROVAL OF AGENDA: MOTION: By Council Member Funk and seconded by Mayor Pro Tem Newsom to: 1. Approve this agenda; and, 2. Waive the reading in full of all ordinances appearing on this agenda, and the titles of the ordinances will be read aloud by the City Clerk at the first reading, after the motion and before the City Council votes. Motion passed 5:0 by a roll-call vote. CLOSED SESSION – REPORT (IF ANY) a. December 14, 2021 City Attorney Pierik reported that there was a decision by the Council to authorize the City to join as a party in a petition of Writ of Mandate that will be filed against the California Public Employees’ Retirement System based on an issue regarding the employment status of the interim Public Works Director, Doug Breeze, who provided service to the City prior to Nick DeBar be appointed full-time. PRESENTATIONS: None. A. CONSENT CALENDAR: 1. City Council Draft Action Minutes – December 14, 2021 ▪ Recommendation: Council approve the December 14, 2021 Draft City Council Regular Meeting Minutes. [City Clerk] 2. November 2021 Accounts Payable and Payroll ▪ Fiscal Impact: $3,382,213.30 ▪ Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for November 2021. [Administrative Services] 3. Community Facilities District 2005-1 Annexation No. 24 ▪ Fiscal Impact: None. ▪ Recommendation: Council adopt on second reading, by title only, Draft Ordinance, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 24. [Community Development] Page 7 of 215 ITEM NUMBER: A-1 DATE: 01/25/22 Atascadero City Council January 11, 2022 Page 3 of 5 4. Virtual Meetings – AB 361 Requirements ▪ Fiscal Impact: None. ▪ Recommendation: Council adopt Draft Resolution making findings consistent with the requirements of AB 361 to continue to allow for the conduct of virtual meetings. [City Manager] 5. CAD/RMS Software Replacement ▪ Fiscal Impact: Adoption of staff recommendations will result in the expenditure of $914,508 over a period of six years for a Computer Aided Dispatch / Police Records Management System. ▪ Recommendations: Council: 1. Authorize the City Manager to execute a contract with Mark43 in the amount of $864,108.00 for implementation, training and annual support for a new CAD and RMS software system for a six year initial contract. 2. Authorize the City Manager to execute an End User License Agreement with CommSys in the amount of $0 for use of products and programs integrated with the CAD/RMS system provided by Mark43 (price included in the Mark 43 contract). 1. Council authorize the Director of Administrative Services to move $119,744 in budgeted general (D-20) funds from the CAD/RMS Software Project (capital outlay) to Computer Maintenance and Replacement (operations) in the Police Department in fiscal year 2022 -2023 for annual support of the new CAD/RMS system. 2. Council authorize the Director of Administrative Services to carry over any remaining budgeted general (D-20) funds from the CAD/RMS Software Project at June 30, 2023 to be used for annual support for the new CAD/RMS system in fiscal years 2023-2024, 2024-2025, 2025-2026 and 2026-2027. 3. Council authorize the City Manager to appropriate an additional $10,080 of Technology Fund Reserves in fiscal year 2022-2023 for a new, redundant internet connection. [Police] At the request of Mayor Moreno, Chief Masterson briefed the City Council on the CAD/RMS software replacement project. MOTION: By Council Member Bourbeau and seconded by Council Member Funk to approve the Consent Calendar. (#A-3: Ordinance No. 651) (#A-4: Resolution No. 2022-001) (#A-5: Contract Nos. 2022-001 and 2022-002) Motion passed 5:0 by a roll-call vote. UPDATES FROM THE CITY MANAGER: City Manager Rickard gave an update on projects and events within the City. Page 8 of 215 ITEM NUMBER: A-1 DATE: 01/25/22 Atascadero City Council January 11, 2022 Page 4 of 5 COMMUNITY FORUM: The following citizens spoke by telephone or through the webinar on this item: Gary Kirkland and Don Sausserig Mayor Moreno closed the COMMUNITY FORUM period. B. PUBLIC HEARINGS: None. C. MANAGEMENT REPORTS: 1. Fiscal Year 2021 Annual Road Report ▪ Fiscal Impact: Distribution of the 2021 Community Road Report is estimated to cost about $5,000 in budgeted General Funds. ▪ Recommendations: Council: 1. Approve the Fiscal Year 2021 Annual Road Report. 2. Approve the 2021 Community Road Report. [Public Works] Public Works Director DeBar gave the staff report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke by telephone or through the webinar on this item: Geoff Auslen and Debra McKrell Mayor Moreno closed the Public Comment period. MOTION: By Council Member Funk and seconded by Council Member Dariz to: 1. Approve the Fiscal Year 2021 Annual Report 2. Approve the 2021 Community Road Report Motion passed 5:0 by a roll-call vote. D. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS: The following Council Members gave brief update reports on their committees since their last Council meeting: Mayor Moreno 1. County Mayors Round Table 2. SLO Council of Governments (SLOCOG) 3. SLO Regional Transit Authority (RTA) Council Member Bourbeau 1. Integrated Waste Management Authority (IWMA) 2. SLO County Water Resources Advisory Committee (WRAC) Council Member Funk 1. Atascadero Basin Ground Water Sustainability Agency (GSA) 2. Homeless Services Oversight Council Page 9 of 215 ITEM NUMBER: A-1 DATE: 01/25/22 Atascadero City Council January 11, 2022 Page 5 of 5 E. INDIVIDUAL DETERMINATION AND / OR ACTION: None. F. RECESS TO MEETING OF THE SUCCESSOR AGENCY Mayor Moreno recessed the Regular Meeting at 7:09 p.m. to the Meeting of the Successor Agency. G. FOLLOWING THE CONCLUSION OF THE SUCCESSOR AGENCY MEETING AND PUBLIC FINANCING AUTHORITY MEETING RECESS CITY COUNCIL REGULAR MEETING TO CLOSED SESSION Mayor Moreno reconvened the Regular Meeting at 7:21 p.m. and recessed to the Closed Session Meeting at 7:23 p.m. COUNCIL CLOSED SESSION: 1. CLOSED SESSION -- PUBLIC COMMENT 2. COUNCIL LEAVES TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER a. Conference with Legal Counsel – Existing Litigation Government Code Sec. 54956.9(d)(1) Name of Case: Newton v. City of Atascadero San Luis Obispo Superior Court Case No. 21CVP-0168 b. Conference with Legal Counsel – Existing Litigation Government Code Sec. 54956.9(d)(1) Name of Case: Sunderland v. City of Atascadero San Luis Obispo Superior Court Case No. 21CVP-0074 c. Conference with Legal – Anticipated Litigation Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): 1 potential case – California Voting Rights Act 4. CLOSED SESSION – ADJOURNMENT 5. CLOSED SESSION – REPORT (IF ANY) H. ADJOURN Following Closed Session, the meeting was adjourned at 8:45 pm; no reportable action. MINUTES PREPARED BY: ______________________________________ Lara K. Christensen City Clerk APPROVED: Page 10 of 215 ITEM NUMBER: A-2DATE: 01/25/22Page 11 of 215 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2021 169480 12/03/2021 13 STARS MEDIA 880.00Accounts Payable Check 169481 12/03/2021 2M WASTE SOLUTIONS 1,315.00Accounts Payable Check 169482 12/03/2021 ALL ABOUT EVENTS, INC. 1,586.50Accounts Payable Check 169483 12/03/2021 ALL SIGNS AND GRAPHICS, INC. 396.94Accounts Payable Check 169484 12/03/2021 AMERICAN WEST TIRE & AUTO INC 176.43Accounts Payable Check 169485 12/03/2021 ANTECH DIAGNOSTICS 415.95Accounts Payable Check 169486 12/03/2021 AT&T 22.88Accounts Payable Check 169487 12/03/2021 AT&T 770.29Accounts Payable Check 169488 12/03/2021 ATASCADERO CHAMBER OF COMMERCE 60,000.00Accounts Payable Check 169490 12/03/2021 ATASCADERO MUTUAL WATER CO. 10,394.40Accounts Payable Check 169491 12/03/2021 AVILA TRAFFIC SAFETY 227.89Accounts Payable Check 169492 12/03/2021 BRANCH SMITH PROPERTIES 362.00Accounts Payable Check 169493 12/03/2021 BREZDEN PEST CONTROL, INC. 96.00Accounts Payable Check 169494 12/03/2021 CA DEPT OF TAX AND FEE ADMIN. 2,835.61Accounts Payable Check 169495 12/03/2021 CARQUEST OF ATASCADERO 51.13Accounts Payable Check 169496 12/03/2021 CHARTER COMMUNICATIONS 124.98Accounts Payable Check 169497 12/03/2021 COASTAL COPY, INC. 363.60Accounts Payable Check 169498 12/03/2021 CUESTA POLYGRAPH & INVEST. LLC 3,550.00Accounts Payable Check 169499 12/03/2021 NICHOLAS DEBAR 300.00Accounts Payable Check 169500 12/03/2021 DELTA LIQUID ENERGY 865.64Accounts Payable Check 169501 12/03/2021 DIGITAL WEST NETWORKS, INC. 90.00Accounts Payable Check 169502 12/03/2021 PHILIP DUNSMORE 300.00Accounts Payable Check 169503 12/03/2021 EARTH SYSTEMS PACIFIC 18,782.50Accounts Payable Check 169504 12/03/2021 EMERGENCY VEHICLE SPECIALISTS 3,896.51Accounts Payable Check 169505 12/03/2021 EWING IRRIGATION PRODUCTS, INC 108.49Accounts Payable Check 169506 12/03/2021 FERRELL'S AUTO REPAIR 578.59Accounts Payable Check 169507 12/03/2021 GAS COMPANY 1,200.02Accounts Payable Check 169508 12/03/2021 GOERS FAMILY TRUST 3,149.68Accounts Payable Check 169509 12/03/2021 GOLDEN STATE COPIER & MAILING 992.00Accounts Payable Check 169510 12/03/2021 HART IMPRESSIONS PRINTING 2,344.94Accounts Payable Check 169511 12/03/2021 HIGH COUNTRY OUTDOOR, INC. 400.00Accounts Payable Check 169513 12/03/2021 HOME DEPOT CREDIT SERVICES 1,935.39Accounts Payable Check 169514 12/03/2021 JK'S UNLIMITED, INC. 827.30Accounts Payable Check 169515 12/03/2021 L.N. CURTIS & SONS 710.68Accounts Payable Check 169516 12/03/2021 LIFE ASSIST, INC. 216.19Accounts Payable Check 169517 12/03/2021 MADRONE LANDSCAPES, INC. 408.00Accounts Payable Check 169518 12/03/2021 SAMUEL H. MCMILLAN, SR. 75.00Accounts Payable Check 169519 12/03/2021 MICHAEL K. NUNLEY & ASSC, INC. 15,067.72Accounts Payable Check 169520 12/03/2021 MID-COAST GEOTECHNICAL, INC. 300.00Accounts Payable Check 169521 12/03/2021 MID-COAST MOWER & SAW, INC. 33.38Accounts Payable Check 169522 12/03/2021 MIG 4,166.25Accounts Payable Check 169523 12/03/2021 MINER'S ACE HARDWARE 118.66Accounts Payable Check 169524 12/03/2021 MISSION UNIFORM SERVICE 1,287.97Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/25/22 ATTACHMENT: 1 Page 12 of 215 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2021 169525 12/03/2021 MOSS, LEVY, & HARTZHEIM LLP 5,000.00Accounts Payable Check 169526 12/03/2021 MP ANNEX, LLC 98,707.23Accounts Payable Check 169527 12/03/2021 MV TRANSPORTATION, INC. 17,187.38Accounts Payable Check 169528 12/03/2021 OFFICE DEPOT INC. 790.83Accounts Payable Check 169529 12/03/2021 PACIFIC GAS AND ELECTRIC 23,090.53Accounts Payable Check 169530 12/03/2021 PARRISH REPORTING 3,860.00Accounts Payable Check 169531 12/03/2021 KATRINA M. PORTER 276.00Accounts Payable Check 169532 12/03/2021 QUINCY ENGINEERING, INC. 5,103.51Accounts Payable Check 169533 12/03/2021 RAINSCAPE, A LANDSCAPE SVC CO. 350.00Accounts Payable Check 169534 12/03/2021 ANDRES & MICHELLE RAMOS 2,174.21Accounts Payable Check 169535 12/03/2021 JERI RANGEL 300.00Accounts Payable Check 169536 12/03/2021 RECOGNITION WORKS 8.05Accounts Payable Check 169537 12/03/2021 RICK ENGINEERING COMPANY 4,745.07Accounts Payable Check 169538 12/03/2021 RACHELLE RICKARD 300.00Accounts Payable Check 169539 12/03/2021 MARCELES RODRIGUEZ 600.00Accounts Payable Check 169540 12/03/2021 SAFE RESTRAINTS, INC. 3,110.50Accounts Payable Check 169541 12/03/2021 SERVICE SYSTEMS ASSC, INC. 5,000.00Accounts Payable Check 169542 12/03/2021 SPEAKWRITE, LLC. 193.40Accounts Payable Check 169543 12/03/2021 SPECIALTY CONSTRUCTION, INC. 158,268.57Accounts Payable Check 169544 12/03/2021 SUNLIGHT JANITORIAL, INC. 961.00Accounts Payable Check 169545 12/03/2021 SUNSET SERVICE CENTER 36.29Accounts Payable Check 169546 12/03/2021 SUPERION, LLC 54,302.58Accounts Payable Check 169547 12/03/2021 T. HORZEN, INC. 25,000.00Accounts Payable Check 169548 12/03/2021 TARGET SOLUTIONS LEARNING, LLC 186.72Accounts Payable Check 169549 12/03/2021 RONALD R. TARICA 108.00Accounts Payable Check 169550 12/03/2021 TEMPLETON TENNIS RANCH, LLC 1,200.00Accounts Payable Check 169551 12/03/2021 TEMPLETON UNIFORMS, LLC 54.75Accounts Payable Check 169552 12/03/2021 TURF STAR, INC. 96.55Accounts Payable Check 169553 12/03/2021 U.S. POSTMASTER 2,200.00Accounts Payable Check 169554 12/03/2021 ULTREX BUSINESS PRODUCTS 65.61Accounts Payable Check 169555 12/03/2021 ULTREX LEASING 263.18Accounts Payable Check 169556 12/03/2021 VERIZON WIRELESS 114.20Accounts Payable Check 169557 12/03/2021 VINO VICE, INC. 1,237.50Accounts Payable Check 169558 12/03/2021 WEST COAST AUTO & TOWING, INC. 440.00Accounts Payable Check 169559 12/03/2021 WEX BANK - 76 UNIVERSL 11,924.54Accounts Payable Check 169560 12/03/2021 WEX BANK - WEX FLEET UNIVERSAL 8,399.20Accounts Payable Check 169561 12/03/2021 YOUTH EVOLUTION SOCCER 3,510.60Accounts Payable Check 4247 12/09/2021 ANTHEM BLUE CROSS HSA 8,536.82Payroll Vendor Payment 169563 12/09/2021 ANTHEM BLUE CROSS HEALTH 193,442.58Payroll Vendor Payment 169564 12/09/2021 LINCOLN NATIONAL LIFE INS CO 1,923.56Payroll Vendor Payment 169565 12/09/2021 MEDICAL EYE SERVICES 1,737.65Payroll Vendor Payment 169566 12/09/2021 PREFERRED BENEFITS INSURANCE 8,581.30Payroll Vendor Payment 4248 12/10/2021 STATE DISBURSEMENT UNIT 467.07Payroll Vendor Payment ITEM NUMBER: A-2 DATE: 01/25/22 ATTACHMENT: 1 Page 13 of 215 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2021 4249 12/10/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 22,882.80Payroll Vendor Payment 4250 12/10/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 33,365.56Payroll Vendor Payment 4251 12/10/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,199.15Payroll Vendor Payment 4252 12/10/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,924.26Payroll Vendor Payment 4253 12/10/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 5,623.27Payroll Vendor Payment 4254 12/10/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 8,100.48Payroll Vendor Payment 4255 12/10/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 9,644.23Payroll Vendor Payment 4256 12/10/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 14,463.73Payroll Vendor Payment 169567 12/10/2021 ATASCADERO MID MGRS ORG UNION 80.00Payroll Vendor Payment 169568 12/10/2021 ATASCADERO POLICE OFFICERS 1,741.50Payroll Vendor Payment 169569 12/10/2021 ATASCADERO PROF. FIREFIGHTERS 1,027.05Payroll Vendor Payment 169570 12/10/2021 MASS MUTUAL WORKPLACE SOLUTION 7,896.44Payroll Vendor Payment 169571 12/10/2021 NATIONWIDE RETIREMENT SOLUTION 473.05Payroll Vendor Payment 169572 12/10/2021 NAVIA BENEFIT SOLUTIONS 3,426.85Payroll Vendor Payment 169573 12/10/2021 SEIU LOCAL 620 828.99Payroll Vendor Payment 169574 12/10/2021 VANTAGEPOINT TRNSFR AGT 106099 416.88Payroll Vendor Payment 169575 12/10/2021 VANTAGEPOINT TRNSFR AGT 304633 6,055.14Payroll Vendor Payment 169576 12/10/2021 VANTAGEPOINT TRNSFR AGT 706276 185.00Payroll Vendor Payment 4257 12/14/2021 RABOBANK, N.A. 64,910.75Payroll Vendor Payment 4258 12/14/2021 EMPLOYMENT DEV DEPARTMENT 21,104.66Payroll Vendor Payment 4259 12/14/2021 EMPLOYMENT DEV. DEPARTMENT 2,943.44Payroll Vendor Payment 169577 12/15/2021 NOAH C. COLTON 250.00Accounts Payable Check 169578 12/15/2021 AMANDA M. WERNIK 250.00Accounts Payable Check 169579 12/17/2021 13 STARS MEDIA 1,710.50Accounts Payable Check 169580 12/17/2021 A SUPERIOR CRANE, LLC 540.00Accounts Payable Check 169581 12/17/2021 A.P.S. AUTOMOTIVE 133.87Accounts Payable Check 169582 12/17/2021 AGM CALIFORNIA, INC. 625.00Accounts Payable Check 169583 12/17/2021 AIRFLOW FILTER SERVICE, INC. 714.45Accounts Payable Check 169584 12/17/2021 ALL SIGNS AND GRAPHICS, INC. 935.25Accounts Payable Check 169585 12/17/2021 ALLIANT INSURANCE SERVICES INC 182.00Accounts Payable Check 169586 12/17/2021 ALLSTAR FIRE EQUIPMENT, INC. 1,653.65Accounts Payable Check 169587 12/17/2021 ALPHA ELECTRIC SERVICE 361.05Accounts Payable Check 169588 12/17/2021 AMERICAN WEST TIRE & AUTO INC 1,605.55Accounts Payable Check 169590 12/17/2021 AT&T 1,296.67Accounts Payable Check 169591 12/17/2021 AT&T 33.63Accounts Payable Check 169592 12/17/2021 ATASCADERO HAY & FEED 2,108.39Accounts Payable Check 169593 12/17/2021 ATASCADERO PICKLEBALL CLUB,INC 201.90Accounts Payable Check 169594 12/17/2021 ATHLETIC STUFF 4,381.54Accounts Payable Check 169595 12/17/2021 ATM ADVANTAGE PLUS 175.00Accounts Payable Check 169596 12/17/2021 AVILA TRAFFIC SAFETY 1,400.00Accounts Payable Check 169597 12/17/2021 BASSETT'S CRICKET RANCH,INC. 800.26Accounts Payable Check 169598 12/17/2021 BELL'S PLUMBING REPAIR, INC. 325.00Accounts Payable Check 169599 12/17/2021 JOSE R. BENITEZ 120.00Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/25/22 ATTACHMENT: 1 Page 14 of 215 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2021 169600 12/17/2021 KEITH R. BERGHER 573.75Accounts Payable Check 169601 12/17/2021 BERRY MAN, INC. 1,817.50Accounts Payable Check 169602 12/17/2021 CALPORTLAND COMPANY 394.37Accounts Payable Check 169603 12/17/2021 CARQUEST OF ATASCADERO 48.92Accounts Payable Check 169604 12/17/2021 CHARTER COMMUNICATIONS 167.40Accounts Payable Check 169605 12/17/2021 CLEVER CONCEPTS, INC. 47.95Accounts Payable Check 169606 12/17/2021 COAST ELECTRONICS 178.61Accounts Payable Check 169607 12/17/2021 COASTAL REPROGRAPHIC SERVICES 337.13Accounts Payable Check 169608 12/17/2021 MIGUEL A. CORDERO GALARZA 75.00Accounts Payable Check 169609 12/17/2021 COUNTY OF SAN LUIS OBISPO 872.00Accounts Payable Check 169610 12/17/2021 CRYSTAL SPRINGS WATER 20.00Accounts Payable Check 169611 12/17/2021 CULLIGAN/CENTRAL COAST WTR TRT 374.45Accounts Payable Check 169612 12/17/2021 SHARON J. DAVIS 273.00Accounts Payable Check 169613 12/17/2021 DEPARTMENT OF JUSTICE 969.00Accounts Payable Check 169614 12/17/2021 DESTINATION TRAVEL NETWORK 75.00Accounts Payable Check 169615 12/17/2021 EIKHOF DESIGN GROUP, INC. 1,583.63Accounts Payable Check 169616 12/17/2021 EPIC IT SUPPORT 437.50Accounts Payable Check 169617 12/17/2021 ESCROW CLEANING SERVICE 450.00Accounts Payable Check 169618 12/17/2021 ESCUELA DEL RIO 780.00Accounts Payable Check 169619 12/17/2021 EWING IRRIGATION PRODUCTS, INC 89.85Accounts Payable Check 169620 12/17/2021 FARM SUPPLY COMPANY 258.55Accounts Payable Check 169621 12/17/2021 FEDEX 100.75Accounts Payable Check 169622 12/17/2021 FERRELL'S AUTO REPAIR 93.40Accounts Payable Check 169623 12/17/2021 FGL ENVIRONMENTAL 919.00Accounts Payable Check 169624 12/17/2021 GARRY BRILL PRODUCTIONS 150.00Accounts Payable Check 169625 12/17/2021 HAMNER, JEWELL & ASSOCIATES 1,306.48Accounts Payable Check 169626 12/17/2021 HINDERLITER, DE LLAMAS 3,361.83Accounts Payable Check 169627 12/17/2021 JK'S UNLIMITED, INC. 556.31Accounts Payable Check 169628 12/17/2021 JOE A. GONSALVES & SON 3,000.00Accounts Payable Check 169629 12/17/2021 KNECHT'S PLUMBING & HEATING 496.93Accounts Payable Check 169630 12/17/2021 KPRL 1230 AM 320.00Accounts Payable Check 169631 12/17/2021 LAYNE LABORATORIES, INC. 647.06Accounts Payable Check 169632 12/17/2021 LEE WILSON ELECTRIC CO. INC 4,269.04Accounts Payable Check 169633 12/17/2021 LIFE ASSIST, INC. 1,657.32Accounts Payable Check 169634 12/17/2021 CRAIG C. LOWRIE 275.00Accounts Payable Check 169635 12/17/2021 MARBORG INDUSTRIES 62.28Accounts Payable Check 169636 12/17/2021 SAMUEL H. MCMILLAN, SR. 425.00Accounts Payable Check 169637 12/17/2021 MID-COAST MOWER & SAW, INC. 410.76Accounts Payable Check 169638 12/17/2021 MINER'S ACE HARDWARE 171.15Accounts Payable Check 169639 12/17/2021 MISSION UNIFORM SERVICE 274.48Accounts Payable Check 169640 12/17/2021 MOSS, LEVY, & HARTZHEIM LLP 3,000.00Accounts Payable Check 169641 12/17/2021 MUNICIPAL MAINT EQUIPMENT, INC 1,329.85Accounts Payable Check 169642 12/17/2021 MWI ANIMAL HEALTH 27.41Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/25/22 ATTACHMENT: 1 Page 15 of 215 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2021 169643 12/17/2021 NEW TIMES 3,332.00Accounts Payable Check 169644 12/17/2021 DANIELLE NUNES-HAKANSON 66.70Accounts Payable Check 169645 12/17/2021 OASIS EQUIPMENT RENTAL 453.87Accounts Payable Check 169646 12/17/2021 OFFICE DEPOT INC. 204.54Accounts Payable Check 169648 12/17/2021 PACIFIC GAS AND ELECTRIC 19,899.64Accounts Payable Check 169649 12/17/2021 PARRISH REPORTING 2,530.00Accounts Payable Check 169650 12/17/2021 PEAKWIFI, LLC 650.00Accounts Payable Check 169651 12/17/2021 PERRY'S PARCEL & GIFT 35.00Accounts Payable Check 169652 12/17/2021 MATT PIGEON 177.78Accounts Payable Check 169653 12/17/2021 KATRINA M. PORTER 84.00Accounts Payable Check 169654 12/17/2021 PREMIER AG PRODUCTS & SERVICES 3,025.00Accounts Payable Check 169655 12/17/2021 PROCARE JANITORIAL SUPPLY,INC. 1,256.92Accounts Payable Check 169656 12/17/2021 PROFESSIONAL AUTOMOTIVE 32.79Accounts Payable Check 169657 12/17/2021 RAINSCAPE, A LANDSCAPE SVC CO. 6,892.00Accounts Payable Check 169658 12/17/2021 RAMINHA CONSTRUCTION, INC. 129,213.51Accounts Payable Check 169659 12/17/2021 READYREFRESH BY NESTLE 948.72Accounts Payable Check 169660 12/17/2021 RECOGNITION WORKS 340.93Accounts Payable Check 169661 12/17/2021 RICK ENGINEERING COMPANY 26,566.78Accounts Payable Check 169662 12/17/2021 SHANNON SCHMIDT 290.00Accounts Payable Check 169663 12/17/2021 SITEONE LANDSCAPE SUPPLY, LLC 1,412.14Accounts Payable Check 169664 12/17/2021 SLO COUNTY HEALTH AGENCY 84,760.00Accounts Payable Check 169665 12/17/2021 SOUTH COAST EMERGENCY VEH SVC 336.39Accounts Payable Check 169666 12/17/2021 SOUZA CONSTRUCTION, INC. 774,660.56Accounts Payable Check 169667 12/17/2021 SP MAINTENANCE SERVICES, INC. 1,200.00Accounts Payable Check 169668 12/17/2021 SPECIALIZED EQUIPMENT REPAIR 1,503.73Accounts Payable Check 169669 12/17/2021 JENNIFER L. SPOTTEN 144.00Accounts Payable Check 169670 12/17/2021 BRUCE ST. JOHN 145.00Accounts Payable Check 169671 12/17/2021 STANLEY CONVERGENT SECURITY 367.20Accounts Payable Check 169672 12/17/2021 STAPLES CREDIT PLAN 190.91Accounts Payable Check 169673 12/17/2021 SUNLIGHT JANITORIAL, INC. 1,700.00Accounts Payable Check 169674 12/17/2021 THOMSON REUTERS - WEST 175.10Accounts Payable Check 169675 12/17/2021 KARL O. TOERGE 93.75Accounts Payable Check 169676 12/17/2021 TURF STAR, INC. 126.56Accounts Payable Check 169681 12/17/2021 U.S. BANK 32,421.66Accounts Payable Check 169682 12/17/2021 UNITED RENTALS (NORTH AM), INC 12,181.73Accounts Payable Check 169683 12/17/2021 VAN BEURDEN INSURANCE SVC, INC 390.00Accounts Payable Check 169684 12/17/2021 THOMAS F. VELASQUEZ 100.00Accounts Payable Check 169685 12/17/2021 VERDIN 23,439.82Accounts Payable Check 169686 12/17/2021 VERIZON WIRELESS 1,873.98Accounts Payable Check 169687 12/17/2021 VINO VICE, INC. 321.75Accounts Payable Check 169688 12/17/2021 WALLACE GROUP 20,128.45Accounts Payable Check 169689 12/17/2021 WCJ PROPERTY SERVICES 1,516.00Accounts Payable Check 169690 12/17/2021 WEST COAST AUTO & TOWING, INC. 280.00Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/25/22 ATTACHMENT: 1 Page 16 of 215 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2021 169691 12/17/2021 WHITLOCK & WEINBERGER TRANS. 2,827.50Accounts Payable Check 169692 12/17/2021 WILKINS ACTION GRAPHICS 1,105.82Accounts Payable Check 169693 12/17/2021 KAREN B. WYKE 319.20Accounts Payable Check 169694 12/17/2021 ZOOM IMAGING SOLUTIONS, INC. 986.91Accounts Payable Check 4260 12/21/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 500.00Accounts Payable Check 4261 12/21/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 1,360.27Accounts Payable Check 4262 12/22/2021 ANTHEM BLUE CROSS HSA 7,938.21Payroll Vendor Payment 169695 12/22/2021 ATASCADERO MID MGRS ORG UNION 80.00Payroll Vendor Payment 169696 12/22/2021 ATASCADERO POLICE OFFICERS 1,741.50Payroll Vendor Payment 169697 12/22/2021 ATASCADERO PROF. FIREFIGHTERS 1,096.80Payroll Vendor Payment 169698 12/22/2021 MASS MUTUAL WORKPLACE SOLUTION 7,208.14Payroll Vendor Payment 169699 12/22/2021 NATIONWIDE RETIREMENT SOLUTION 605.69Payroll Vendor Payment 169700 12/22/2021 NAVIA BENEFIT SOLUTIONS 3,426.69Payroll Vendor Payment 169701 12/22/2021 SEIU LOCAL 620 822.33Payroll Vendor Payment 169702 12/22/2021 VANTAGEPOINT TRNSFR AGT 106099 416.88Payroll Vendor Payment 169703 12/22/2021 VANTAGEPOINT TRNSFR AGT 304633 6,601.00Payroll Vendor Payment 169704 12/22/2021 VANTAGEPOINT TRNSFR AGT 706276 185.00Payroll Vendor Payment 4263 12/23/2021 STATE DISBURSEMENT UNIT 467.07Payroll Vendor Payment 4264 12/23/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 22,314.88Payroll Vendor Payment 4265 12/23/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 32,873.29Payroll Vendor Payment 4266 12/23/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,098.54Payroll Vendor Payment 4267 12/23/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,650.48Payroll Vendor Payment 4268 12/23/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 5,623.27Payroll Vendor Payment 4269 12/23/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 8,370.95Payroll Vendor Payment 4270 12/23/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 10,319.15Payroll Vendor Payment 4271 12/23/2021 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 14,614.20Payroll Vendor Payment 4272 12/28/2021 RABOBANK, N.A. 69,897.94Payroll Vendor Payment 4273 12/28/2021 EMPLOYMENT DEV DEPARTMENT 22,804.85Payroll Vendor Payment 4274 12/28/2021 EMPLOYMENT DEV. DEPARTMENT 2,846.22Payroll Vendor Payment 169705 12/30/2021 13 STARS MEDIA 3,810.68Accounts Payable Check 169706 12/30/2021 ALL SIGNS AND GRAPHICS, INC. 843.90Accounts Payable Check 169707 12/30/2021 ALTHOUSE & MEADE, INC. 180.00Accounts Payable Check 169708 12/30/2021 AMERICAN WEST TIRE & AUTO INC 35.00Accounts Payable Check 169709 12/30/2021 RICK APPIANO 25.00Accounts Payable Check 169710 12/30/2021 APPLIED CONCEPTS, INC. 630.32Accounts Payable Check 169711 12/30/2021 MICHAEL J. ARRIOLA 1,700.00Accounts Payable Check 169712 12/30/2021 AT&T 22.68Accounts Payable Check 169713 12/30/2021 AT&T 1,158.74Accounts Payable Check 169714 12/30/2021 ATASCADERO HAY & FEED 8.66Accounts Payable Check 169715 12/30/2021 ATASCADERO NEWS 49.95Accounts Payable Check 169716 12/30/2021 ATM ADVANTAGE PLUS 350.00Accounts Payable Check 169717 12/30/2021 BANK OF NEW YORK MELLON 2,420.00Accounts Payable Check 169718 12/30/2021 BASSETT'S CRICKET RANCH,INC. 269.81Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/25/22 ATTACHMENT: 1 Page 17 of 215 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2021 169719 12/30/2021 BATTERY SYSTEMS, INC. 67.21Accounts Payable Check 169720 12/30/2021 BREZDEN PEST CONTROL, INC. 170.00Accounts Payable Check 169721 12/30/2021 C. SKY DEVELOPMENT, LLC 55.00Accounts Payable Check 169722 12/30/2021 CARQUEST OF ATASCADERO 63.97Accounts Payable Check 169723 12/30/2021 CASEY PRINTING, INC. 5,715.32Accounts Payable Check 169724 12/30/2021 CCI OFFICE TECHNOLOGIES 903.69Accounts Payable Check 169725 12/30/2021 GREGORY B. CHAFFE 20.00Accounts Payable Check 169726 12/30/2021 CHARROS OF ROCK, LLC 2,200.00Accounts Payable Check 169728 12/30/2021 CHARTER COMMUNICATIONS 8,259.94Accounts Payable Check 169729 12/30/2021 COASTAL COPY, INC. 546.72Accounts Payable Check 169730 12/30/2021 COASTAL REPROGRAPHIC SERVICES 184.66Accounts Payable Check 169731 12/30/2021 CUESTA POLYGRAPH & INVEST. LLC 15,364.46Accounts Payable Check 169732 12/30/2021 COLIN W. DEAN 1,500.00Accounts Payable Check 169733 12/30/2021 ECONOMIC & PLANNING SYSTEM INC 4,690.00Accounts Payable Check 169734 12/30/2021 CHRISTOPHER J. EDWARDS 750.00Accounts Payable Check 169735 12/30/2021 EMERGENCY VEHICLE SPECIALISTS 2,812.88Accounts Payable Check 169736 12/30/2021 FENCE FACTORY ATASCADERO 2,405.00Accounts Payable Check 169737 12/30/2021 FERRELL'S AUTO REPAIR 76.19Accounts Payable Check 169738 12/30/2021 CODY FERRIS 80.00Accounts Payable Check 169739 12/30/2021 GAS COMPANY 4,185.01Accounts Payable Check 169740 12/30/2021 GOOD TIDES ORGANICS 55.00Accounts Payable Check 169741 12/30/2021 GSOLUTIONZ, INC. 2,167.32Accounts Payable Check 169742 12/30/2021 HANSEN BRO'S CUSTOM FARMING 7,694.37Accounts Payable Check 169743 12/30/2021 HART IMPRESSIONS PRINTING 415.34Accounts Payable Check 169744 12/30/2021 TAMRA HELTON 25.00Accounts Payable Check 169745 12/30/2021 HERC RENTALS, INC. 2,605.16Accounts Payable Check 169746 12/30/2021 HIGH COUNTRY OUTDOOR, INC. 1,038.80Accounts Payable Check 169747 12/30/2021 IRON MOUNTAIN RECORDS MGMNT 251.06Accounts Payable Check 169748 12/30/2021 JK'S UNLIMITED, INC. 16,489.36Accounts Payable Check 169749 12/30/2021 JOE A. GONSALVES & SON 3,000.00Accounts Payable Check 169750 12/30/2021 KEY TERMITE & PEST CONTROL,INC 555.00Accounts Payable Check 169751 12/30/2021 LIFE ASSIST, INC. 1,326.02Accounts Payable Check 169752 12/30/2021 JAMES MANNING 25.00Accounts Payable Check 169753 12/30/2021 MARIACHI VOCES TAPATIAS 2,200.00Accounts Payable Check 169754 12/30/2021 MATERIAL GIRLS 115.00Accounts Payable Check 169755 12/30/2021 MEDINA LIGHT SHOW DESIGNS 2,240.00Accounts Payable Check 169756 12/30/2021 MID-COAST MOWER & SAW, INC. 97.85Accounts Payable Check 169757 12/30/2021 MIG 2,963.30Accounts Payable Check 169758 12/30/2021 MINER'S ACE HARDWARE 525.50Accounts Payable Check 169759 12/30/2021 MISSION UNIFORM SERVICE 279.50Accounts Payable Check 169760 12/30/2021 MOTOROLA SOLUTIONS, INC. 480,700.00Accounts Payable Check 169761 12/30/2021 KYLE NAKAZAWA 188.17Accounts Payable Check 169762 12/30/2021 NBS 7,171.39Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/25/22 ATTACHMENT: 1 Page 18 of 215 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2021 169763 12/30/2021 NEW TIMES 1,527.00Accounts Payable Check 169764 12/30/2021 OFFICE DEPOT INC. 730.67Accounts Payable Check 169765 12/30/2021 PACIFIC GAS AND ELECTRIC 31,833.80Accounts Payable Check 169766 12/30/2021 PASO ROBLES SAFE & LOCK, INC. 3,319.31Accounts Payable Check 169767 12/30/2021 PEAKWIFI, LLC 650.00Accounts Payable Check 169768 12/30/2021 VOID 0.00Accounts Payable Check 169769 12/30/2021 PROCARE JANITORIAL SUPPLY,INC. 246.10Accounts Payable Check 169770 12/30/2021 QUINCY ENGINEERING, INC. 2,226.52Accounts Payable Check 169771 12/30/2021 JERI RANGEL 80.00Accounts Payable Check 169772 12/30/2021 EVAN RUSSELL 250.00Accounts Payable Check 169773 12/30/2021 SAN LUIS POWERHOUSE, INC. 990.00Accounts Payable Check 169774 12/30/2021 SANTA MARIA TIRE, INC. 5,542.78Accounts Payable Check 169775 12/30/2021 ENRIQUE M. SANTOS 1,800.00Accounts Payable Check 169776 12/30/2021 SLOFIST 75.00Accounts Payable Check 169777 12/30/2021 SP MAINTENANCE SERVICES, INC. 450.00Accounts Payable Check 169778 12/30/2021 SUNLIGHT JANITORIAL, INC. 961.00Accounts Payable Check 169779 12/30/2021 TARGET SOLUTIONS LEARNING, LLC 186.72Accounts Payable Check 169780 12/30/2021 U.S. POSTMASTER 573.21Accounts Payable Check 169781 12/30/2021 ULTREX BUSINESS PRODUCTS 41.90Accounts Payable Check 169782 12/30/2021 VERIZON WIRELESS 350.79Accounts Payable Check 169783 12/30/2021 VITAL RECORDS CONTROL 169.99Accounts Payable Check 169784 12/30/2021 WALLACE GROUP 12,272.45Accounts Payable Check 169785 12/30/2021 WEST COAST AUTO & TOWING, INC. 241.21Accounts Payable Check 169786 12/30/2021 GEORGE L. WESTLUND 125.00Accounts Payable Check 169787 12/30/2021 ZOOM IMAGING SOLUTIONS, INC. 986.91Accounts Payable Check $ 3,105,239.07 ITEM NUMBER: A-2 DATE: 01/25/22 ATTACHMENT: 1 Page 19 of 215 ITEM NUMBER: A-3DATE: 01/25/22Page 20 of 215 ITEM NUMBER: A-3DATE: 01/25/22Page 21 of 215 ITEM NUMBER: A-3DATE: 01/25/22Page 22 of 215 ITEM NUMBER: A-3 DATE: 01/25/22 Page 23 of 215 ITEM NUMBER: A-3 DATE: 01/25/22 Page 24 of 215 ITEM NUMBER: A-3 DATE: 01/25/22 Page 25 of 215 ITEM NUMBER: A-3 DATE: 01/25/22 Page 26 of 215 ITEM NUMBER: A-3 DATE: 01/25/22 Page 27 of 215 ITEM NUMBER: A-3 DATE: 01/25/22 Page 28 of 215 ITEM NUMBER: A-3 DATE: 01/25/22 Page 29 of 215 ITEM NUMBER: A-3DATE: 01/25/22Page 30 of 215 ITEM NUMBER: A-3DATE: 01/25/22Page 31 of 215 ITEM NUMBER: A-3DATE: 01/25/22Page 32 of 215 ITEM NUMBER: A-3DATE: 01/25/22Page 33 of 215 ITEM NUMBER: B-1 DATE: 01/25/22 Atascadero City Council Staff Report - Community Development Department Ratification of Approval of Hazardous Tree Removal RECOMMENDATION: Council adopt Draft Resolution ratifying staff’s approval of the removal of one, 55-inch DBH, hazardous Heritage Coast Live Oak previously located at 5955 East Mall, subject to conditions of approval and mitigation, including replanting on site. REPORT-IN-BRIEF: An application has been submitted by the property owner to retroactively request the City Council approval for the removal of one 55-inch diameter at breast height (DBH) Coast Live Oak, which was located on the property frontage of Century 21 and Malibu Brew Coffee across from the Sunken Gard ens. The tree was originally planted as part of the historic Atascadero Civic Center, and in the update of the Native Tree Ordinance in February 2018, the tree was one of multiple trees around the park declared as a heritage tree due to its significance. Recently, the tree had been subject to disease and was declared dead by a certified arborist. The consulting arborist identified the condition of the tree by labeling it with a hazard rating of 12 out of 12 possible points indicating a severe danger. The arborist recommended removal and replanting. Following the death of the tree and potential for limb failure, staff approved emergency removal of the tree to eliminate safety hazards to pedestrians, public improvements, and c ars along East Mall. Because this tree is a listed heritage tree, City Council approval for removal and determination of appropriate mitigation is required. DISCUSSION: Background The subject tree was a 55-inch DBH Coast Live Oak located along the property frontage of Century 21 and Malibu Brew on East Mall. The tree was located in front of the parking lot for this building and within a landscape planter on private property. According to the consulting arborist, Steve Alvarez from A&T Arborists, the tree was completely dead when observed on October 20, 2021, and it was a matter of time as to when it would fail and potentially damage cars and public improvements or injure pedestrians. The risk assessment provided with the Tree Hazard Evaluation Form (Attachment 5) listed the tree as being of maximum hazard, or 12 out of 12 possible points indicating great severity. Since the tree was dead, there were no other alternatives besides removal to avoid potential and inevitable hazards. Page 34 of 215 ITEM NUMBER: B-1 DATE: 01/25/22 Analysis City staff consulted with the project arborist to approve the removal of the 55-inch DBH Coast Live Oak tree. Removal of this large dead tree was beneficial due to the severe hazard risk, and high potential for targets, which include pedestrians, property improvements and vehicles in the immediate area. The tree lined streets around the Sunken Gardens are a unique character defining feature for the City. The large Coast Live Oak trees located on the property frontages of West Mall and East Mall were originally planted approximately 100 years ago during construction of the City Hall Administration building. Page 35 of 215 ITEM NUMBER: B-1 DATE: 01/25/22 The Native Tree Ordinance labels these trees, includ ing the removed tree, as “Heritage Trees”, which are defined as any native or non-native tree recognized by the City Council for its age, size, location, historical, and/or cultural significance. Heritage Trees are subject to the same protections as native trees and proposals for their removal must be approved by the City Council. It is the responsibility of the property owner to maintain native trees and, if needed, process removal of the tree. Mitigation and/or installation of required replanting(s) are the responsibility of the property owner. The Atascadero Municipal Code requires mitigation for all trees approved for removal. The Tree Ordinance allows for either replanting of new native trees, payment of mitigation fees to the tree fund, or a combination of both. Mitigation is to be assigned on a case by case basis. Given the prominent location and historical significance of the removal, staff recommends that the applicant mitigate by replanting a new tree in the same location. Given the age of the existing trees around the Sunken Gardens, staff expects that over the next few decades we will continue to see failures and decline of the other 100 -year- old Heritage Trees on these streets. In order to maintain the historic character and ambiance that defines the City core, staff is recommending replacement of these trees one at a time. By staggering the removals and giving the new trees time to grow, we can slowly replace the Coast Live Oaks around the Sunken Gardens and blend the new generation of trees in with the old established trees. Based on the native tree replacement standards, removal of a 55 -inch DBH evergreen native tree would require mitigation of either eighteen (18) new 5 -gallon oak trees planted on site, or payment of $916.67 to the tree fund. The tree ordinance allows multi -family and commercial projects to plant larger size specimens to reduce the quantity of replacements required. Given the limited planting area available on site, there will be an additional cost to the property owner to grind out the stump of the existing tree and prepare the site for replanting. Therefore, for this unique situation, staff is recommending one (1) 36-inch box Coast Live Oak be planted on the West Mall property frontage in the area of the removed tree to fulfil mitigation requirements. Staff is also recommending a minimum height of 10-feet and minimum DBH of 4-inches at the time of planting. A 36- inch box tree is young enough to adapt to the new environment when replanted and will be large enough to look like a tree for appearance purposes in this high traffic area. Irrigation to the new tree, as well as supplemental native shrubs that will help the oak tree thrive, are conditioned to be installed in the existing planter to complete the landscape on the property frontage. Given the visual importance and historic character of the Coast Live Oak trees which line West Mall and East Mall, staff believes that mitigating through strategic replanting efforts is crucial for proper mitigation of the removed tree. In considering any tree removal request, at least one of the required findings must be made. Staff has identified the following finding as appropriate for the application request. The tree is dead, diseased or injured beyond reclamation, as certified by a tree condition report from an arborist. Page 36 of 215 ITEM NUMBER: B-1 DATE: 01/25/22 Conclusion The consulting certified arborist evaluated the subject 55 -inch DBH Coast Live Oak and determined it had died and was a severe hazard risk. The emergency removal of this Heritage Tree was in the best interest of public safety and to limit risks. Since the tree was deemed an emergency removal, there was no permit required but the removal is still subject to mitigation, which staff is recommending as replanting one (1) 36-inch box size tree in place of the removed tree. FISCAL IMPACT: None. The subject 55-inch Coast Live Oak tree is located on private property along the Eat Mall frontage. Per the Atascadero Municipal Code, it is the responsibility of the property owner to maintain the frontages of their property, including native trees. Therefore, it is the property owners’ responsibility to process removal of the tree, including mitigation. ALTERNATIVES: 1. The Council may approve the project with additional or revised project conditions. 2. The Council may continue the hearing and refer the item back to staff for additional information or analysis. Direction should be given to staff and the applicant on required information. ATTACHMENTS: 1. Draft Resolution 2. Location Map 3. Aerial Photo 4. Photo of Tree Pre-Removal 5. Tree Hazard Evaluation Form Page 37 of 215 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/25/22 1 DRAFT RESOLUTION RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, RATIFYING STAFF’S APPROVAL OF THE REMOVAL OF ONE 55-INCH DBH HAZARDOUS HERITAGE COAST LIVE OAK PREVIOUSLY LOCATED AT 5955 EAST MALL WHEREAS, an application was received from Mike Sherer, (Applicant and Owner) 5955 East Mall, Atascadero, CA 93422, to approve the removal of one hazardous Heritage Coast Live Oak totaling 55-inches diameter at breast height (DBH); and WHEREAS, the site’s current General Plan Land Use Designation is Downtown (D); and WHEREAS, the site’s current Zoning Designation is Downtown Commercial (DC); and WHEREAS, Atascadero Municipal Code 9-11.105 exempts emergency tree removals from requiring a tree removal permit and this tree was deemed an immediate hazard by a certified arborist; and WHEREAS, the City Council is required to make decisions regarding all tree removal application requests involving designated heritage trees and therefore, the applicant is subject to required mitigation; and WHEREAS, the subject tree was a 55-inch DBH Coast Live Oak which was planted as part of the design and original construction of the historic Atascadero Civic Center during establishment of the Atascadero Colony, and has helped to create a tree lined streetscape on West Mall and East Mall which is a unique character defining feature of the City’s core; and WHEREAS, the laws and regulations relating to the preparation and public notice of environmental documents, as set forth in the State and local guidelines for implementation of the California Environmental Quality Act (CEQA) have been adhered to. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero: SECTION 1. Recitals: The above recitals are true and correct. SECTION 2. Public Hearing. The City Council of the City of Atascadero, at a Public Hearing held on January 25, 2022, considered the proposed tree removal mitigation. SECTION 3. CEQA. The proposed project is Categorically Exempt (Class 4) from the provisions of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) CEQA pursuant to CEQA Guidelines Section 15304, for minor alterations to land. Page 38 of 215 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/25/22 1 SECTION 4. Facts and Findings. The City Council makes the following findings, determinations and approvals with respect to ratifying the approval of the hazardous Heritage Coast Live Oak tree removal at 5955 East Mall. A. Findings for Approval of Heritage Tree Removal FINDING: The tree is dead, diseased or injured beyond reclamation, as certified by a tree condition report from an Arborist. FACT: An arborist report completed by Steve Alvarez of A&T Arborists, states that the tree is dead and rated at the highest hazard risk of twelve out of twelve. SECTION 2. Approval. The City Council of the City of Atascadero, in a regular session assembled on January 25, 2022, resolved to ratify staff’s approval of the removal of one hazardous Heritage Coast Live Oak totaling 55 inches DBH previously located at 5955 East Mall, subject to the following: EXHIBIT A: Conditions of Approval EXHIBIT B: Replanting Detail PASSED AND ADOPTED at a regular meeting of the City Council held on the ____th day of __________, 2022. On motion by Council Member ___________ and seconded by Council Member _____________, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: CITY OF ATASCADERO ________________________________ Heather Moreno, Mayor ATTEST: Lara K. Christensen, City Clerk APPROVED AS TO FORM: Brian Pierik, City Attorney Page 39 of 215 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/25/22 1A Conditions of Approval TRP21-0098 Century 21 Tree Removal; 5955 East Mall Timing FM; Final Map BL: Business License GP: Grading Permit BP: Building Permit FI: Final Inspection TO: Temporary Occupancy FO: Final Occupancy Responsibility /Monitoring PS: Planning Services BS: Building Services FD: Fire Department PD: Police Department CE: City Engineer WW: Wastewater CA: City Attorney 1. The approval of this application shall become final, subject to the completion of the conditions of approval, fourteen (14) days following the City Council approval unless prior to the time, an appeal to the decision is filed as set forth in Section 9-1.111(b) of the Zoning Ordinance. Tree Removal PS 2. The applicant and/or subsequent owners shall defend, indemnify, and hold harmless the City of Atascadero or its agents, officers, and employees against any claim or action brought to challenge an approval by the City, or any of its entities, concerning the proposed project. Ongoing PS 3. The applicant shall mitigate the tree removal by replanting on site. The applicant shall replant one (1) new 36-inch box size Coast Live Oak that is a minimum of 10-feet tall and has a minimum 4-in DBH along with supportive native shrubs. The existing stump shall be ground out to provide adeq uate area for planting the new tree. To improve tree survival, planting shall be done according to the planting detail in Exhibit B, and verified on site by the consulting arborist. Irrigation shall be provided to the new tree and native shrubs. Tree removal PS 4. The new tree replanted on site shall be monitored by site inspections by the City during a four (4) year establishment period. The applicant shall replant if the original replacement tree does not survive. Ongoing PS 5. Additional landscape plantings, including native shrubs, ground cover and mulch shall be installed in the planter area of the removed tree to complete the frontage landscape and help the new oak tree thrive. Supplemental plant location and species shall be approved by the project arborist to ensure compatibility with the new Coast Live Oak tree. Tree removal PS Page 40 of 215 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/25/22 1B Page 41 of 215 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/25/22 2 Page 42 of 215 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/25/22 3 Page 43 of 215 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/25/22 4 Page 44 of 215 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/25/22 5 Page 45 of 215 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/25/22 5 Page 46 of 215 ITEM NUMBER: C-1 DATE: 01/25/22 Atascadero City Council Staff Report – Administrative Services Department Fiscal Year 2020-2021 Audit RECOMMENDATION: Council review and accept the financial audit for the period ended June 30, 2021. DISCUSSION: The audit firm of Moss, Levy, and Hartzheim has performed a full audit of the financial statements and found that the City presented fairly and accurately the City’s financial position, and further, that the reporting was in conformity with generally accepted accounting principles. Fiscal Year 2020-2021 was another unusual year. Given the circumstances, the City performed relatively well overall. Coronavirus (COVID-19) effects were not as pronounced as they were in the prior fiscal year, but still had an impact on the City. Some one-time and some ongoing revenues were able to offset much of the COVID-19 impact, ultimately enhancing the City’s bottom line. As the City moves toward the future, the Council’s continued focus on economic development, the rebound of the economy, careful budgeting of the Sales Tax Measure D-20 Essential Services Tax funds, and ongoing fiscal stewardship by the Council and staff will continue to be vital to the City’s financial health. General Fund Activity, Excluding Measure F-14 and Measure D-20 Activities Measure F-14 and Measure D-20 Sales Tax activity are included in the General Fund for legal and accounting reasons, but are broken out in this discussion for both transparency and comparability reasons. Part of Council’s long-term Financial Strategy includes projecting out revenues, expenses, and fund balance for seven years. This is to understand estimated trends in the future for the benefit of the City’s fiscal health and ensure there’s no on -going structural deficit or the reserves don’t get too low. This Strategy promotes the use of General Fund reserves during lean revenue years in order to continue to fund essential City services at a steady level. At the start of fiscal year 2020-2021, the adopted budget anticipated the use of $450,500 in General Fund reserves during the fiscal year. The year concluded with a net change in fund balance of $237,000. This is a positive variance from the Projection of about $810,000. The table below shows General Fund activity excluding both tax measures: Page 47 of 215 ITEM NUMBER: C-1 DATE: 01/25/22 Original Budget Actual Amounts Variance Revenues: Secured and unsecured property taxes 10,987,520$ 10,792,509$ (195,011)$ Taxes based on sales and use 4,226,020 4,728,862 502,842 Franchise tax 1,130,330 1,232,615 102,285 Other taxes 1,961,090 1,819,618 (141,472) Licenses and permits 640,460 754,420 113,960 Intergovernmental revenues:324,680 712,940 388,260 Charges for services:2,001,520 3,221,463 1,219,943 Fines and forfeitures 80,330 49,312 (31,018) Use of money and property 56,000 95,125 39,125 Other revenues 1,268,040 1,384,715 116,675 Total revenues 22,675,990 24,791,579 2,115,589 Expenditures: Employee services 17,267,100 16,722,868 544,232 Operating supplies and services 5,909,950 5,592,895 317,055 Special purchases, projects, and community funding 520,320 970,954 (450,634) Capital outlay - 336,627 (336,627) Total expenditures 23,697,370 23,623,344 74,026 Excess of revenues over (under) expenditures (1,021,380) 1,168,235 2,189,615 Other Financing Sources (Uses): - - - - - - Transfers in 698,950 698,950 - Transfers out (250,490) (255,067) (4,577) Total other financing sources and uses 448,460 443,883 (4,577) (572,920) 1,612,118 2,185,038 - (1,375,175) (1,375,175) (572,920)$ 236,943 809,863$ Fund balance - June 30, 2020 12,016,839 Fund balance - June 30, 2021 12,253,782$ Net change in fund balance GENERAL FUND ACTIVITY (excluding tax measures F-14 & D-20) Fiscal year 2020-2021 Settlement agreement- SB 1090 Economic Development Funds (PG&E DCPP)Settlement agreement- SB 1090 Essential Services Mitigation Funds (PG&E DCPP) Net changes in fund balance prior to extraordinary itemExtraordinary gains/(losses)- Write-off of Redevelopment Loans The variance is due to a number of factors, but the largest of these are higher than expected sales tax, gross Mutual Aid revenue, Zoo revenue, Permits and Development revenue, and Intergovernmental revenue. In addition to the revenue increases were salary savings due to unfilled vacancies. As discussed in further detail below, the decrease in costs of employee services were not for the lack of need of those positions; positions often remain vacant for an extended period of time to the difficulty of finding qualified applicants for the positions. Salary savings have a positive impact on the bottom line, but unfo rtunately stretch the existing staff beyond their capacities or alternatively, delay projects, programs, or activities. There were also savings in Operating expenses. Offsetting these positive budget impacts were increases in Special Projects and Capital Outlay ($790,000). These were higher than originally projected, and included some critically needed infrastructure purchases that were approved as part of the 2021 -2023 budget process. Fiscal year 2020-21 also reflects a one-time extraordinary loss. The City General Fund had previously loaned three separate advances to the former Page 48 of 215 ITEM NUMBER: C-1 DATE: 01/25/22 Redevelopment Agency. The total of these three loans was $1,375,175. Through the Dissolution of Redevelopment, new laws became effective that challenged the repayment of these loans by the Redevelopment Agency to the City. The City worked diligently to satisfy the requirements for repayment, but ultimately was unsuccessful. These loans were written-off as uncollectable during the current fiscal year, 2020-2021, and are listed as an Extraordinary Loss on the financial statements. Sales Tax Measure D-20 - Essential Services Tax Fiscal year 2020-2021 is the first year that reflects Sales Tax Measure D-20 revenue. Atascadero taxpayers approved this 1% sales tax measure in November of 2020. A series of well-publicized public meetings were held to develop strategic priorities and key focus areas for not only Measure D-20 funds, but all discretionary City funds. After determining these priorities and focus areas, the st aff worked to develop draft budgets. The budgets were reviewed in detail at a series of well-publicized public Finance Committee meetings. Following those meetings, the two-year budget was presented and adopted at the Council’s June 8, 2021, regular meeting. Revenue from Measure D-20 allows the City to fund many of the community’s and Council’s key priorities. It became effective April 1, 2021, and the 2020-2021 fiscal year includes the first quarter of the tax collections. Measure D-20 tax revenues for this period were $1.4 million, while expenditures for the same period came in around $808,000. While, in the future, Measure D-20 funds will be generally identified and separate reports issued listing the projects and accomplishments, the detailed financial activity will be reported on as part of the General Fund and not called out separately as is done with Measure F-14. General Fund Activity, Measure F-14 Activity Measure F-14 revenue was about $2.8 million for the fiscal year, which is almost 60% of Bradley-Burns sales revenue. Although the Bradley-Burns sales tax rate is 1% and the Measure F-14 sales tax rate is 0.5%, some items that are purchased by Atascadero residents outside of Atascadero still incur the Measure F-14 sales tax rate. Measure F-14 expenditures were about $2.6 million during the fiscal year. Street rehabilitation projects tend to occur during the summer months when the weather is right for paving, but this often causes projects expenditures to cross fiscal years. The project budget that is unused in one fiscal year can be carried over to the next fiscal year for use in that same project. Using Critical Point Management, 29.57 centerline miles of road have been improved since the inception of the Measure F-14. Page 49 of 215 ITEM NUMBER: C-1 DATE: 01/25/22 General Fund Activity, Measure F-14 and non-Measure F-14 All General Fund activity (tax measures and non-tax measures) combined to increase the General Fund by about $1.1 million during the year. The General Fund balance at the end of the year, including the Measure F-14 funds, was $17,336,153. General Fund activity for fiscal year 2020-2021 is summarized in the following chart: General Activity Measure D-20 Measure F-14 Total General Fund Revenues 25,490,529$ 1,415,443$ 2,843,488$ 29,749,460$ Expenditures (23,878,411) (807,930) (2,608,155) (27,294,496) Net changes before extraordinary loss 1,612,118 607,513 235,333 2,454,964 Extraordinary loss (1,375,175) - - (1,375,175) Net changes after extraordinary loss 236,943 607,513 235,333 1,079,789 Beginning fund balance 12,016,839 - 4,239,525 16,256,364 Ending fund balance 12,253,782$ 607,513$ 4,474,858$ 17,336,153$ The following Comparative Income Statement compares revenues and expenditures for the 2019-2020 and 2020-2021 fiscal years. It is difficult to see the long-term trends across these two years as both fiscal years have been atypical due to the COVID impacts, as is discussed in more detail below. Nevertheless, it still provides some perspective with a more typical fiscal year. This Statement does not include the Measure F-14 Activity, nor the Measure D-20 activity. Page 50 of 215 ITEM NUMBER: C-1 DATE: 01/25/22 2019/2020 Actuals 2020/2021 Actuals % Change $ Change REVENUES: Property Tax 10,341,744$ 10,792,509$ 4.4%450,765$ Sales tax 4,188,715 4,728,862 12.9%540,147 Transient Occupancy Tax 1,123,619 1,385,896 23.3%262,277 Cannabis Business Tax 11,331 48,983 332.3%37,652 Other Taxes 1,469,298 1,617,354 10.1%148,056 Intergovernmental 1,182,334 557,292 -52.9%(625,042) Grants 275,882 155,648 -43.6%(120,234) Service Charges Mutual Aid 239,292 1,442,644 502.9%1,203,352 Public safety 212,762 233,544 9.8%20,782 Development 1,246,515 1,443,821 15.8%197,306 Recreation, zoo, parks & pavilion 671,382 790,255 17.7%118,873 Interest 172,410 198,779 15.3%26,369 Adjustment to Market Value-GASB 31 213,138 (103,654) -148.6%(316,792) Interfund charges 1,079,688 1,162,868 7.7%83,180 Other 297,817 336,778 13.1%38,961 Transfers 690,450 698,950 1.2%8,500 Total revenues 23,416,377$ 25,490,529$ 8.9%2,074,152$ EXPENDITURES: Employee services (15,755,553)$ (16,722,868)$ 6.1%(967,315)$ (5,874,437) (5,847,962) -0.5%26,475 Special purchases (585,561) (970,954) 65.8%(385,393) Capital outlay (111,429) (336,627) 202.1%(225,198) Total expenses (22,326,980) (23,878,411) 6.9%(1,551,431)$ Net Income before extraordinary item 1,089,397 1,612,118 - (1,375,175) Net income after extraordinary item 1,089,397 236,943 Fund Balance Beginning of year 10,927,442 12,016,839 FUND BALANCE END OF YEAR 12,016,839$ 12,253,782$ Operating supplies & services GENERAL FUND COMPARATIVE INCOME STATEMENT Excluding Measure F-14 & Measure D-20 Activity Extraordinary gain/(loss)- Write-off of Redevelopment Loans Revenues The most significant dollar amount deviations from the prior year on the revenue side are changes in Property Tax Revenue, Sales Tax Revenue, Intergovernmental Revenue, and Mutual Aid Revenue. Property Tax Revenue Current secured revenues usually make up about 60%-65% of the City’s property tax revenues and are what most people think of when discussing property taxes. Assessed values are established as of January 1 of each year. The values for fiscal year 2020-21 were determined as of January 2020. Page 51 of 215 ITEM NUMBER: C-1 DATE: 01/25/22 Secured property tax grew at a rate of 3.7% from 2019-2020 fiscal year to the 2020-2021 fiscal year. The increase is due to a combination of the inflationary increases and increased economic development activity. Assessed valuations are expected to continue a steady growth trend of 3%-4% each year through fiscal year 2027-2028. Detailed, comparative Property Tax Revenue information for the most recently completed two fiscal years is found below: 2019/2020 Actuals 2020/2021 Actuals % Change $ Change Secured Property Tax 6,453,948$ 6,693,256$ 3.7%239,308$ Property tax in lieu of VLF 3,026,209 3,163,757 4.5%137,548 Unsecured property tax 272,946 275,023 0.8%2,077 Supplemental property tax 143,079 142,452 -0.4%(627) Redevelopment agency distribution 465,449 527,383 13.3%61,934 Prior year secured and unsecured (18,447) (9,053) -50.9%9,394 Property tax penalities and interest (1,440) (309) -78.5%1,131 Total revenues 10,341,744$ 10,792,509$ 4.4%450,765$ GENERAL FUND PROPERTY TAX REVENUE COMPARISON Sales Tax Revenue Many changes have occurred that impact the various components of this revenue source. COVID-19 had unique impacts on different industry sectors that collect the tax. Fuel and service stations were down 4.9% and general consumer goods were down 6.1%. Offsetting those industry sectors were the Building and Construction sector, up 15.1%, and the Autos and Transportation sector, up 29%. In addition, Assembly Bill 147 (AB 147) expanded the collection of sales and use taxes from out -of-state sales via the implementation of the landmark U.S. Supreme Court decision in South Dakota v. Wayfair (2018). AB 147 requires certain online retailers to collect and remit sales tax related to online sales as of April 1, 2019, and requires the same of marketplace facilitators as of October 1, 2019. As a result, cities throughout the state, including Atascadero, have experienced healthy increases in sales tax revenue. This new revenue is distributed by the County through state and local “pools”. Revenue that Atascadero receiv ed in 2020- 21 from the pools was 21% higher than the pool revenue from the prior year due to AB 147. Growth in the pools will slow down in upcoming years as major vendors continue to change their operations, which in turn, affects the distribution of the sales tax revenue across jurisdictions within the state. Sales Tax Measure D-20 is included in General Fund Sales Tax total as presented in the financial statements. Sales Tax Measure D-20 became effective April 1, 2021. Revenue of $1.4 million was collected during the period from April 1, 2021, through June 30, 2021. Although both the Bradley-Burns and Measure D-20 sales tax rates are 1%, some items that are purchased by Atascadero residents outside of Atascadero still incur the Measure D-20 sales tax rate, and therefore projected revenues for Measure D-20 are greater than 100% of Bradley-Burns revenue. Measure D-20 revenues are expected to gradually grow throughout the Seven-Year Projection period. Page 52 of 215 ITEM NUMBER: C-1 DATE: 01/25/22 Intergovernmental Revenues Intergovernmental revenues were down from the prior year by about $625,000. In fiscal year 2019-2020, the City received a one-time payment of about $783,100 for Senate Bill 1090 Economic Development funds to offset the impact of the impending closure of PG&E’s Diablo Canyon Power Plant. The City will continue to receive about $45,500 in each of the next four fiscal years for essential services mitigation. CARES Act funding of about $123,700 was also received in fiscal year 2019-2020 to offset some of the costs incurred due to the COVID-19 pandemic. CARES Act reimbursement funds of $247,408 was recognized in fiscal year 2020-2021. Mutual Aid Revenue The City has agreements with other agencies such as the US Forest Service and the California Department of Forestry to respond to fires and other emergencies upon request. The City receives reimbursement for the costs of its personnel and equipment. Mutual Aid revenues vary greatly from year to year based on the need of emergency response personnel across the State. Mutual Aid revenues and expenses are typically budgeted at an average rate each year. There were a significant number of fires statewide in fiscal year 2020-2021, resulting in a much higher than average response. Mutual Aid revenues were $1.4 million for the fiscal year. Offsetting costs are included in employee services and operating expenditures sections. Expenditures Employee Services Employee Services are the largest portion of General Fund Expenditures, averaging around 70% of General Fund expenses each year. Employee Services actual costs for 2020-2021 were higher than the prior year by about $967,000 and right on target with the June 2021 Seven-Year Projection. The majority of increase in costs over the prior year is due to increases in health care and retirement costs, and these two components are expected to continue to increase employee costs into the future. Both years had salary savings from unplanned vacancies in various departments in the City. Atascadero has historically had significant salary disparities with the surrounding agencies, making is difficult to attract and retain qualified employees. Sales Tax Measure D -20 has provided the means to offer more competitive salaries. All City departments have been affected by this, but the Police Department, in particular, has seen much more success in attracting applicants since the salary changes went into effect July 1, 2021. Operating Supplies and Services When compared to the prior year, 2020-2021 expenditures were lower by about $26,500. Actual results for 2020-2021 were on target with the June 2021 Seven-Year Forecast amounts. Sales Tax Measure D-20 is providing additional General Fund revenue and helps to provide more adequate funding for necessary operating supplies and services to serve the public. Special Purchases and Capital Outlay Special Purchases and Capital Outlay generally do not lend themselves to a predictable trend line. These are usually one -time purchases and/or they have a corresponding revenue source. Both categories vary from year to year, based on the City’s needs at the time. In most cases, when the expenses come in under budget, this means the budgeted Page 53 of 215 ITEM NUMBER: C-1 DATE: 01/25/22 item hasn’t been purchased yet but will still need to be purchased in the future. Less frequently, an alternative to purchasing the items has been identified. Fiscal year 2020- 2021 reflects usage of Sales Tax Measure D-20 funds allocated to various equipment and reserve replacement, among some other adjustments. General Fund Balance The General Fund balance (excluding Measure F-14 Activity) at June 30, 2021, was just under $13 million, or 52% of General Fund expenditures for the year. This continues to be in line with Council’s long-range financial strategy, maintaining a healthy reserve. The General Fund June 2021 Seven-Year Projection estimates the continued use of General Fund reserves through fiscal year 2022-2023. At no time are reserves expected to drop below the Council Policy minimum of 20% of general fund expenditures. Audit Report The audit report summarizes the City’s financial performance for the fiscal year and provides an overview of financial activities. It is a useful big-picture tool to manage long- term fiscal health of the City. The Management Discussion and Analysis reviews the financial highlights, gives an overview of the financial statements, and provides a financial analysis of the City’s funds. Following that, summarized information on all of the City’s funds can be found. The Notes to the Financial Statements include additional details and explanations of the figures in the Statements, giving the reader a better understanding of the complete fiscal performance of the City. The last section of the report includes detailed information on the balance of each of the funds and their activity. The report was audited by a local independent audit firm, Moss, Levy, and Hartzheim, and as seen on the Independent Auditor’s Report on page 1, was found to be in conformity with generally accepted accounting principles. FISCAL IMPACT: None. ATTACHMENTS: 1. Fiscal Year 2020-2021 Audited City Financial Statements 2. Independent Auditors’ Draft Report on Internal Control Page 54 of 215 CITY OF ATASCADERO FINANCIAL STATEMENTS June 30, 2021 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 55 of 215 FINANCIAL STATEMENTS June 30, 2021 Heather Moreno, MAYOR Heather Newsom, MAYOR PRO TEMPORE Charles Bourbeau, COUNCIL MEMBER Mark Dariz, COUNCIL MEMBER Susan Funk, COUNCIL MEMBER Gere W. Sibbach, CITY TREASURER Rachelle Rickard, CITY MANAGER Prepared by the Department of Administrative Services ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 56 of 215 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2021 Independent Auditors' Report……………………...…………………………………………………………………………………………………………………………………………1 Management's Discussion and Analysis…………………………………………………………………………………………………………………………………………………………………………………3 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position……………………………………………………………………….……………………………………………………………………………………………………………………13 Statement of Activities………………………………………………………………………………………………………………………………………………………….15 Fund Financial Statements: Governmental Funds: Balance Sheet……………………………………………………………………………………………………………………………………………………………………16 Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Position…………………………………………………………………18 Statement of Revenues, Expenditures, and Changes in Fund Balances……………………………………………………………………………………..20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities……………………………...……..……………………...……………………………………..22 Proprietary Funds: Statement of Net Position……………………………….…………………………………………………………………………………………………………………………24 Combining Statement of Revenues, Expenses, and Changes in Net Position……………………………………………………………………………………………………….26 Combining Statement of Cash Flows………………………………………………………………………………………...……………………………………………………………28 Private Purpose Trust Funds: Statement of Fiduciary Net Position……………………………….…………………………………………………………………………………………………………………………30 Statement of Changes in Fiduciary Net Position………………………………………………………………………………………………………………………………….31 Notes to the Basic Financial Statements……………………………………………………………………………………………………………………………………………32 Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Summary ………………………………………………74 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Detail………………………………………………76 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - In Lieu Low/Moderate Income Housing Fund………………………………………………93 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Circulation System Fees Fund………………………………………………94 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Fire Aerial Vehicle Impact Fees Fund………………………………………………95 Schedule of Changes in the Total OPEB Liability and Related Ratios…………………………………………………………………………………………………96 i ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 57 of 215 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2021 Required Supplementary Information (continued): Schedule of OPEB Contributions……………………………………………….…………………………………………………………………………………………………97 Schedule of the Local Government's Proportionate Share of the Net Pension Liability ……………………………………………………………………………………………………98 Schedule of Pension Contributions…………………………………………………………………………………………………………………………………………………………….99 Other Supplementary Information: Major Debt Service Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - 2010 Bond Debt Service Fund………………………………………………100 Nonmajor Governmental Funds Overview………………………………………………………………………………………………………………………………………….101 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds………………………………………………………………………………………………………………105 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds…………………………………..………………110 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Supplemental Law Enforcement Services Fund…………………………………………………………………………………………………………………………….115 Downtown Business Improvement Area Fund……………………………………………………………………………………………………………………………………….116 Atascadero Tourism Business Improvement District Fund……………………………………………………………………………………………………………………………………….117 Community Development Block Grant Fund………………………………………………………………………………………………………………………………..118 Tree Plant Fund………………………………………………………………………………………………………………………………………………………………119 Gas Tax Fund…………………………………………………………………………………………………………………………………………………………………..120 Local Transportation Fund…………………………………………………………………………………………………………………………………………………………………..122 Street Assessment Fund……………………………………………………………………………………………………………………………………………………..124 General Government Facilities Fees Fund……………………………………………………………………………………………………………………………………..125 Storm Drainage Facilities Fees Fund…………………………………………………………………………………………………………………………………………….126 Law Enforcement Facilities Fees Fund…………………………………………………………………………………………………………………………………….127 Fire Facilities Fees Fund…………………………………………………………………………………………………………………………………………………………..128 Open Space Acquisition Fees Fund……………………………………………………………………………………………………………………………………………….129 Parkland Facilities Fees Fund………………………………………………………………………………………………………………………………………………………130 Public Facilities Fees Fund………………………………………………………………………………………………………………………………………………………131 Library Expansion Facilities Fees Fund………………………………………………………………………………………………………………………………………………132 Community Facilities District Fund…………………………...………………..…………………………………………………………………………………………..133 ii ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 58 of 215 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2021 Other Supplementary Information (continued): Combining and Individual Fund Statements and Schedules (continued): Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (continued): Apple Valley Street & Storm Drain Assessment District Fund………….……………………………………………………………………………………………134 Apple Valley Landscape & Lighting Assessment District Fund…………………..…………………………………………………………………………………………135 Las Lomas Street & Storm Drain Assessment District Fund……………………...………………………………………………………………………………………136 Las Lomas Landscape & Lighting Assessment District Fund…………………………...……………………………………………………………………………………137 De Anza Street & Storm Drain Assessment District Fund…………………………..…………………………………………………………………………………138 De Anza Landscape & Lighting Assessment District Fund…………………………...…………………………………………………………………………………139 Capital Projects Fund……………………………………………………………………………………………………………………………………………………………140 2010 Bond Proceeds Master Agreement Fund……………………………………………………………………………………………………………………………………………………………141 Youth Center Construction Fund………………………………………………………………………………………………………………………………………….142 Combining Statement of Net Position - Internal Service Funds……………………………………………………………………………………………………………………143 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds…………………………………………………………………..145 Combining Statement of Cash Flows - Internal Service Funds……………………………………………………………………………………………………………..147 iii ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 59 of 215 Moss, Levy & Hartzheim LLP Certified Public Accountants 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455 Tel 805.925.2579 Fax 805.925.2147 mlhcpas.com BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA INDEPENDENT AUDITORS’ REPORT City Council of the City of Atascadero Atascadero, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atascadero (the City), as of and for the fiscal year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atascadero, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 16 to the financial statements, in January 2021, the World Health Organization has declared COVID-19 to constitute a “Public Health Emergency of International Concern.” Given the uncertainty of the situation, the duration of any financial impact cannot be reasonably estimated at this time. Our opinion is not modified with respect to this matter. 1 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 60 of 215 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on page 3 through 12, the budgetary comparison information on pages 74 through 95, the schedule of changes in the total OPEB liability and related ratios on page 96, the schedule of OPEB contributions on page 97, the schedule of proportionate share of net pension liability on page 98, and the schedule of pension contributions on page 99, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Atascadero’s basic financial statements. The major debt service fund budgetary schedule, combining and individual nonmajor fund financial statements and schedules, and combining internal service funds financial statements, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The major debt service fund budgetary schedule, combining and individual nonmajor fund financial statements and schedules, and combining internal service funds financial statements, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the major debt service fund budgetary schedule, combining and individual non-major fund financial statements and schedules, and combining internal service funds financial statements, are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2021, on our consideration of the City of Atascadero’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Santa Maria, California November 30, 2021 2 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 61 of 215 3 MANAGEMENT’S DISCUSSION AND ANALYSIS Fiscal Year Ended June 30, 2021 INTRODUCTION This discussion and analysis of the City of Atascadero’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2021. For the most complete picture of the City, please read this document in conjunction with the City’s basic financial statements and the accompanying notes to the basic financial statements. The City’s financial statements are available at City Hall offices. FINANCIAL HIGHLIGHTS  City total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of June 30, 2021, by about $185.8 million. Of this amount, $137.3 million is net investment in capital assets, $36.9 million is restricted for various purposes, and $11.6 million is unrestricted.  Capital projects expenditures varied only slightly from the amount spent in the prior fiscal year by about $124,500 due to changes in the various street repair projects and other capital projects.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $52.9 million, an increase of about $1.6 million from the prior fiscal year. Approximately $37 million of the total is not available for more general spending because it represents amounts that are already obligated or restricted. About $15.7 million of the ending fund balance is available for future obligations.  The City’s compensated absences due to employees decreased by about $201,100, and the City’s total liabilities increased by about $1.5 million. This increase was primarily due to the City’s change in CalPERS Net Pension Liability, and offset by the decrease in compensated absences, reduction in bond debt, and workers’ compensation liability. For additional information, see Note 8 in the Notes to the Financial Statements.  At the end of the current fiscal year, unassigned fund balance for the general fund was $16,450,157 or 61% of total general fund expenditures, $4,474,858 of which is related to the Sales Tax Measure F-14 funding. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 62 of 215 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2021 4 OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements presented herein include the activities of the City of Atascadero using the integrated approach as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34. Government-Wide Financial Statements The Government-W ide Financial Statements present a broad overview of the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business-type activities separately. These statements include all assets of the City (including infrastructure) as well as all liabilities (including long-term liabilities). Additionally, certain eliminations have occurred as prescribed by GASB Statement No. 34 in regard to interfund activity, payables, and receivables. The Statement of Net Position presents information on all of the City’s assets, deferred outflows, liabilities, and deferred inflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as an indicator of whether the financial position of the City of Atascadero is improving or declining. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both of the Government-wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees or are required by grantor agencies to be accounted for in this fashion (business-type activities). The governmental activities include police, fire, parks, recreation, community development, public works, and general government activities. Property and sales taxes, user fees, interest income, franchise fees, and state and federal grants finance these activities. The business-type activities include wastewater and transit. As required by accounting principles generally accepted in the United States of America, these financial statements present the City (the primary government). The City previously had a component unit (the Community Redevelopment Agency of Atascadero) through January 31, 2012, for which the government was considered to be financially accountable. Effective February 1, 2012, Assembly Bill AB 1x26, as modified by the California Supreme Court, dissolved redevelopment agencies in California. All assets and liabilities were required to be transferred to the corresponding Successor Agency identified in each community. In Atascadero, the City became the Successor Agency and holds these assets and liabilities in Private Purpose Trust. See Note 15 in the Notes to the Financial Statements for further details on the Successor Agency. The City has no component units that require discrete presentation in accordance with GASB Statement No. 14, as amended by GASB Statements No. 39, No. 61, and No. 80. Fund Financial Statements A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Atascadero, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds of the City are divided into three categories of activities – governmental, proprietary, and private purpose trust funds. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 63 of 215 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2021 5 OVERVIEW OF THE FINANCIAL STATEMENTS (continued) Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial Statements. However, unlike the Government-wide Financial Statements, Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of Governmental Fund Financial Statements is narrower than that of the Government-wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains multiple individual governmental funds. Information for the General Fund is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances. The General Fund, the In Lieu Low/Moderate Income Housing Fund, the Circulation System Fees Fund, the Fire Aerial Vehicle Impact Fees Fund, and the 2010 Bond Debt Service Fund are considered to be the major governmental funds. Data from the other nonmajor governmental funds are combined into a single, aggregated presentation. Individual fund data, including budgetary information, for each of these nonmajor governmental funds is provided in the combining financial statements under the supplementary information section. A budget comparison statement has been provided to demonstrate compliance with the budget. Budgetary information for the major governmental funds has been provided under the required supplementary information section. Proprietary Funds Proprietary Funds provide the same type of information as the business-type activities in the government-wide financial statements, except that the Proprietary Funds provide greater detail. The City maintains two types of Proprietary Funds: Enterprise Funds and Internal Service Funds. The City’s Enterprise Funds are the same as the business-type activities reported in the Government-wide Financial Statements: Transit and Wastewater. The City uses Internal Service Funds to report activities that provide supplies and services for the City’s other programs and activities. The City’s Internal Services Funds include the Technology Fund, the Building Maintenance and Replacement Fund, and the Vehicle and Equipment Replacement Fund. The Internal Service Funds are combined into one column within the Proprietary Funds statements and are combined with governmental activities in the Government- wide Financial Statements. Private Purpose Trust Funds Private Purpose Trust Funds are used to account for monies held on behalf of others in a fiduciary capacity. The City uses private purpose trust funds to account for the Successor Agency of the Former Redevelopment Agency which was dissolved on January 31, 2012, pursuant to state law. All resources of the funds are used to support specified activities. Notes to the Basic Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 64 of 215 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2021 6 GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Atascadero, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by about $185.8 million at the close of the most recent fiscal year. 2020-2021 Governmental Activities 2020-2021 Business-Type Activities 2020-2021 Total 2019-2020 Governmental Activities 2019-2020 Business-Type Activities 2019-2020 Total 66,712,881$ 12,945,049$ 79,657,930$ 63,666,525$ 12,415,323$ 76,081,848$ 137,160,987 14,493,219 151,654,206 135,919,827 13,848,080 149,767,907 Total assets 203,873,868 27,438,268 231,312,136 199,586,352 26,263,403 225,849,755 6,798,729 140,732 6,939,461 6,565,083 131,094 6,696,177 Total deferred outflows 6,798,729 140,732 6,939,461 6,565,083 131,094 6,696,177 3,924,506 1,112,219 5,036,725 3,215,229 442,528 3,657,757 45,890,914 884,485 46,775,399 44,413,485 816,979 45,230,464 Total liabilities 49,815,420 1,996,704 51,812,124 47,628,714 1,259,507 48,888,221 639,031 37,405 676,436 1,107,967 51,990 1,159,957 Total deferred inflows 639,031 37,405 676,436 1,107,967 51,990 1,159,957 122,790,987 14,493,219 137,284,206 121,289,827 13,848,080 135,137,907 36,865,362 - 36,865,362 35,556,171 - 35,556,171 561,797 11,051,672 11,613,469 568,756 11,234,920 11,803,676 Total net position 160,218,146$ 25,544,891$ 185,763,037$ 157,414,754$ 25,083,000$ 182,497,754$ Net position: Net investment in capital assets Restricted Unrestricted Current and other assets Capital assets Current liabilities Noncurrent liabilities Deferred outflows Deferred inflows The largest portion of the City’s net position (74%) reflects its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional 20% of the City’s net position represents resources subject to external restrictions on how they may be used. The remaining 6% ($11,613,469) is considered unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. There was a decrease of $190,207 in unrestricted net position from fiscal year 2019-2020 to 2020-2021. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 65 of 215 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2021 7 GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued) Consistent with the prior fiscal year, as of the end of the current fiscal year, the City is able to report positive balances in both categories of net position, for both the government as a whole, as well as for its separate governmental and business-type activities. During the current fiscal year, the City’s net position increased by about $3.3 million. Information about changes in net position is summarized below: 2020-2021 Governmental Activities 2020-2021 Business-Type Activities 2020-2021 Total 2019-2020 Governmental Activities 2019-2020 Business-Type Activities 2019-2020 Total Revenues: Program Revenues Charges for services 3,840,606$ 3,202,434$ 7,043,040$ 2,564,773$ 2,566,845$ 5,131,618$ Operating grants and contributions 1,675,019 375,145 2,050,164 2,638,542 403,919 3,042,461 Capital grants and contributions 2,944,236 - 2,944,236 3,292,142 - 3,292,142 General Revenues: Secured and unsecured property taxes 11,740,280 - 11,740,280 11,241,453 - 11,241,453 Sales and use taxes 8,976,357 - 8,976,357 6,671,958 - 6,671,958 Other taxes 3,374,198 - 3,374,198 2,873,271 - 2,873,271 Motor Vehicle in Lieu 22,045 - 22,045 24,064 - 24,064 Investment Income 194,021 22,921 216,942 1,535,194 498,668 2,033,862 Gain on disposal of capital assets - 9,525 9,525 - - - Interest from Successor Agency 635,984 - 635,984 745,753 - 745,753 Total Revenues 33,402,746 3,610,025 37,012,771 31,587,150 3,469,432 35,056,582 SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2021 and 2020 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 66 of 215 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2021 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued) 2020-2021 Governmental Activities 2020-2021 Business-Type Activities 2020-2021 Total 2019-2020 Governmental Activities 2019-2020 Business-Type Activities 2019-2020 Total Program Expenses General Government 3,775,014$ -$ 3,775,014$ 4,268,231$ -$ 4,268,231$ Public Safety 14,799,947 - 14,799,947 14,595,102 - 14,595,102 Community Development 2,675,072 - 2,675,072 2,584,305 - 2,584,305 Community, Recreation & Zoo Services 2,437,541 - 2,437,541 2,725,838 - 2,725,838 Parks & Open Space 1,297,724 - 1,297,724 1,385,965 - 1,385,965 Public Works 3,531,980 - 3,531,980 3,588,467 - 3,588,467 Sewer - 2,642,732 2,642,732 - 2,681,730 2,681,730 Transit - 505,402 505,402 - 565,721 565,721 Interest on long-term debt 706,901 - 706,901 716,390 - 716,390 Total Expenses 29,224,179 3,148,134 32,372,313 29,864,298 3,247,451 33,111,749 Change in net position before extraordinary item 4,178,567 461,891 4,640,458 1,722,852 221,981 1,944,833 Extraordinary gain/(loss)- Write-off of Redevelopment Loans (1,375,175) - (1,375,175) - - - Change in net position 2,803,392 461,891 3,265,283 1,722,852 221,981 1,944,833 Net position- beginning 157,414,754 25,083,000 182,497,754 155,691,902 24,861,019 180,552,921 Net position- ending 160,218,146$ 25,544,891$ 185,763,037$ 157,414,754$ 25,083,000$ 182,497,754$ SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2021 and 2020 Governmental activities during the year increased the City’s net position by $2,803,392. Business-type activities increased the City’s net position by $461,891. Fiscal year 2020-2021 includes an extraordinary loss of $1,375,175. The City General Fund loaned three separate advances to the former Redevelopment Agency. The total of these three loans was $1,375,175. Through the Dissolution of Redevelopment, new law became effective that challenged the repayment of these loans by the Redevelopment Agency to the City. The City worked diligently to satisfy the requirements for repayment, but ultimately was unsuccessful. These loans were written-off as uncollectable during the current fiscal year, 2020-2021, and are listed as an Extraordinary Loss on the financial statements. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 67 of 215 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2021 9 FINANCIAL ANALYSIS OF THE CITY’S FUNDS As noted earlier, the City of Atascadero uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. As of June 30, 2021, the City’s governmental funds reported combined ending fund balances of $52,909,393. Of this total, $103,620 cannot be spent because it is in a non-spendable form and/or a non-cash form such as prepaid items, deposits, and inventory. The City’s governmental funds Unassigned Fund Balance is $15,710,316. The General Fund portion of this, $16,450,157, is available for any purpose. The remaining Unassigned Fund Balance is the amount of the Fire Aerial Vehicle Impact Fees Fund where expenditures were made prior to receipt of restricted revenues. The Restricted Fund Balance of $36,864,632 includes amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation. The Assigned fund balance, $230,825, is the amount the City intends to use for road projects. General Fund – The General Fund is the chief operating fund of the City. At June 30, 2021, the total fund balance was $17,336,153 and the spendable unassigned fund balance was 95% of the total. As a measure of the General Fund’s liquidity, it may be useful to compare total fund balance to total fund expenditures. The total General Fund balance represents 64% of fund expenditures. The General Fund balance increased $1,079,789 during the fiscal year. In Lieu Low/Moderate Income Housing Fund – This fund accounts for fees that are paid by developers in lieu of building inclusionary (affordable) housing. These fees are expended on programs that provide and/or promote affordable housing within the City. At June 30, 2021, the fund balance was $5,874,674. Circulation System Fees Fund – This fund accounts for fees that are paid by developers to fund the creation of more lane miles or more efficient lane miles with which to accommodate the additional trips created by new development. These fees are expended for the construction of new/increased/improved roadway and bridge facilities. The fund balance at June 30, 2021, was $2,850,002, up $134,252 from the prior year. Fire Aerial Vehicle Impact Fees Fund – This fund accounts for impact fees imposed on commercial and multi-family residential developments for the purpose of contributing toward the purchase of the Aerial Fire Truck (Ladder Truck). The City purchased this truck in fiscal year 2007-2008 using future revenues, and therefore, the fund had a negative balance of ($739,841) at June 30, 2021. As projects continue to develop over time, Impact Fee revenues should move this negative balance toward zero. 2010 Bond Debt Service Fund – The 2010 Bond Debt Service Fund accounts for all of the advances receivable from the Successor Agency and the debt service payments for the Lease Revenue Bonds that were issued on September 1, 2010. At June 30, 2021, the total fund balance was $15,774,765, which reflects $14.4 million in advances receivable from the Successor Agency. See Notes 8 and 15 to the financial statements for additional information on the Successor Agency and the bond issue. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 68 of 215 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2021 10 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) Other Governmental Funds – These are nonmajor funds of the City and are presented in the basic financial statements in the aggregate and in detail in the supplementary section of this report. At June 30, 2021, these funds had an aggregate fund balance of $11,813,640. Of this total, $730 is non- spendable and $230,825 is assigned for specific uses. The Restricted Fund Balance is $11,582,085. More information about these nonmajor funds can be found in the combining and individual fund financial statements and schedules. Proprietary Funds The City’s two enterprise funds provide the same type of information found in the Government-wide Financial Statements, but in more detail. Highlights of the annual activity for these funds have already been presented in the discussion of the business-type activities. Debt Administration Debt, considered a liability of governmental and business-type activities, increased in FY 2020-2021 by $1,544,935, primarily due to the changes in the Net Pension Liability as required to be reported by GASB 68, and was offset by a decrease in compensated absences, a reduction in bonds payable, and a decrease in workers’ compensation liability. The Net Pension Liability for Governmental Activities at the end of the year was $29,776,861 and $849,200 for Business-type Activities. Compensated absences decreased by $201,072 during the year. Cash Management To obtain flexibility in cash management, the City employs a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds with maturities planned to coincide with cash needs. Idle cash is invested in certain eligible securities as constrained by law and further limited by the City’s Investment Policy. The goals of the City’s Investment Policy are safety, liquidity, and yield. Capital Assets The capital assets of the City are those assets that are used in the performance of the City’s functions, including infrastructure assets. At June 30, 2021, net capital assets of the governmental activities totaled $137,160,987 and the net capital assets of the business-type activities totaled $14,493,219. Depreciation on capital assets is recognized in the Government-wide Financial Statements. The City has elected to depreciate its infrastructure assets. In order to depreciate the infrastructure assets, an estimated useful life for each type of asset was determined using engineering standards, industry standards, as well as discussions with City staff regarding the City’s maintenance program for each asset type. This allowed the estimated useful life of each asset type to be tailored to include the unique attributes of the City of Atascadero. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 69 of 215 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2021 11 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) The following table presents summary information on the City’s capital assets: 2020-2021 Governmental Activities 2020-2021 Business-Type Activities 2020-2021 Total 2019-2020 Governmental Activities 2019-2020 Business-Type Activities 2019-2020 Total Non-Depreciable: Land 41,588,097$ 547,738$ 42,135,835$ 41,586,578$ 547,738$ 42,134,316$ Construction in progress 5,549,723 1,791,495 7,341,218 8,213,095 368,097 8,581,192 Depreciable: Vehicles and equipment 13,127,131 1,232,249 14,359,380 12,620,842 1,319,645 13,940,487 Structures and improvements 55,129,124 29,405,855 84,534,979 54,291,867 29,405,855 83,697,722 Infrastructure 74,009,505 - 74,009,505 69,668,498 - 69,668,498 Accumulated Depreciation (52,242,593) (18,484,118) (70,726,711) (50,461,053) (17,793,255) (68,254,308) Net capital assets 137,160,987$ 14,493,219$ 151,654,206$ 135,919,827$ 13,848,080$ 149,767,907$ General Fund Budgetary Highlights A detailed budgetary comparison schedule for the fiscal year ended June 30, 2021, is presented in the required supplementary information to the basic financial statements. The final budget amounts (which are the focus of this discussion) are different from those presented in the 2020-2021 budget document. This is due to changes that occurred between the time that the budget was prepared and fiscal year-end final budget approvals. The following summarizes the original and final budget compared with actual results for 2020-2021: General Fund Original Budget Final Budget Actual Variance Positive (Negative) Revenues 25,088,680$ 27,430,930$ 29,050,510$ 1,619,580$ Expenditures 28,376,660 31,148,930 27,039,429 4,109,501 Other Sources (Uses)495,460 443,880 443,883 3 Extraordinary gains/(losses)- Write- off of Redevelopment Loans - - (1,375,175) (1,375,175) Fund Balance, beginning 16,256,364 16,256,364 16,256,364 - Fund Balance, ending 13,463,844$ 12,982,244$ 17,336,153$ 4,353,909$ ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 70 of 215 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2021 12 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) Both revenues and expenditure budgets were increased during the year, primarily reflecting adjustments for Public Works activities, Fee Studies, Fire Evacuation Plan, and Inclusionary Housing planning. In addition, Council approved $2,044,260 in expenditures during the fiscal year, primarily for reserves for future equipment purchases, economic development, current equipment purchases, street trees, and workers’ compensation insurance reserves. Although the final budget reduced the fund balance of the General Fund when compared to the original budget, the actual activity during the year increased the fund balance by $4.4 million over the final budget. Economic Factors and Next Fiscal Year’s Budget The City’s revenues are sensitive to the local and national economic environments. After years of downturn, the economy was on a positive trajectory when the Coronavirus hit and negatively impacted the economy. However, trends began to recover in fiscal year 2020-2021. Approximately 45% of the City’s General Fund revenue comes from property tax revenues, which tend to be more stable in times of economic flux than other sources. The City continues to recover from the Coronavirus and is ever-focused on economic development as needs continue to exceed the availability of resources. The voters recently passed Sales Tax Measure D-20, providing additional revenue for the General Fund. Economic factors and key issues and trends that affect the budget include: Sales Tax Measure D-20 This is a general purpose one-cent transaction tax that was effective April 1, 2021. It will be used primarily for essential City services. Annual new revenue is estimated at about $4.5 million. CalPERS Retirement Cost Increases Both the CalPERS normal cost rate and the unfunded accrued liability (UAL) continue to increase through fiscal year 2024-2025 before they are expected to level out again. These costs will impact future fiscal years. Assembly Bill 147 (AB 147) AB 147 (passed April 25, 2019) expanded the collection of sales and use tax to many internet-based purchases. As a result, “new” revenue that was not previously subject to sales tax collection is now being collected and remitted to Atascadero and other agencies. Coronavirus The City and the overall economy continue to recover from the effects of COVID-19. Facility rentals and recreation revenue may still reflect negative impacts, but other revenues such as Zoo admissions and CARES Act Funds are expected to show positive impacts. The 2021-2022 budget is lean, smart, and will make the best of the City’s limited resources. In preparing the budget, the objective was to provide an effective plan to maintain the Council goals and the City’s core services. The Council’s top priorities are:  Economic and Community Vibrancy  Fiscal and Infrastructure Efficiency and Sustainability  Ensuring Public Safety and Providing Exceptional City Services  Quality of Life To accomplish all of these goals, the 2021-2022 budget includes the planned use of $1,915,590 in reserves, in accordance with the Council’s financial strategy. CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Atascadero, Administrative Services Department, 6500 Palma Avenue, Atascadero, CA 93422. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 71 of 215 BASIC FINANCIAL STATEMENTS ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 72 of 215 CITY OF ATASCADERO STATEMENT OF NET POSITION June 30, 2021 Governmental Activities Business-Type Activities Total ASSETS Cash and investments 41,669,148$ 12,621,761$ 54,290,909$ Restricted cash and investments: Cash with fiscal agents 1,404,765 - 1,404,765 Certificates of deposit 85,473 - 85,473 Receivables: Federal distributions due 693,531 194,528 888,059 Due from State of California 2,578,681 - 2,578,681 Due from County of San Luis Obispo 215,401 63,195 278,596 Accrued interest 103,503 31,981 135,484 Accrued interest receivable- 2010 bonds 174,430 - 174,430 Other receivables 820,832 39,050 859,882 Internal balances 7,841 (7,841) - Deposits, prepaid items, and inventory 31,846 2,375 34,221 Notes receivable 4,557,430 - 4,557,430 Advance receivable- Successor Agency 14,370,000 - 14,370,000 Capital assets: Non-depreciable: Land 41,588,097 547,738 42,135,835 Construction in progress 5,549,723 1,791,495 7,341,218 Depreciable: Vehicles and equipment 13,127,131 1,232,249 14,359,380 Structures and improvements 55,129,124 29,405,855 84,534,979 Infrastructure 74,009,505 - 74,009,505 Accumulated depreciation (52,242,593) (18,484,118) (70,726,711) Total assets 203,873,868 27,438,268 231,312,136 DEFERRED OUTFLOWS Deferred outflows related to pensions 6,798,729 140,732 6,939,461 Total deferred outflows 6,798,729 140,732 6,939,461 The notes to the basic financial statements are an integral part of this statement. 13 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 73 of 215 CITY OF ATASCADERO STATEMENT OF NET POSITION (continued) June 30, 2021 Governmental Activities Business-Type Activities Total LIABILITIES Accounts payable 1,418,772$ 808,438$ 2,227,210$ Accrued salaries and benefits 677,500 21,662 699,162 Accrued interest payable 174,430 - 174,430 Other payables 81,651 24,529 106,180 Deposits payable 82,416 - 82,416 Unearned revenue 1,489,737 257,590 1,747,327 Noncurrent liabilities: Due within one year 272,982 - 272,982 Due in more than one year 45,617,932 884,485 46,502,417 Total liabilities 49,815,420 1,996,704 51,812,124 DEFERRED INFLOWS Deferred inflows related to pensions 639,031 37,405 676,436 Total deferred inflows 639,031 37,405 676,436 NET POSITION Net investment in capital assets 122,790,987 14,493,219 137,284,206 Restricted for: Restricted for parks and recreation 2,193,088 - 2,193,088 Restricted for streets, roads, and drainage 9,497,268 - 9,497,268 Restricted for public safety 1,803,205 - 1,803,205 Restricted for economic development 1,722,362 - 1,722,362 Restricted for redevelopment and housing 5,874,674 - 5,874,674 Restricted for debt service 15,774,765 - 15,774,765 Unrestricted 561,797 11,051,672 11,613,469 Total net position 160,218,146$ 25,544,891$ 185,763,037$ The notes to the basic financial statements are an integral part of this statement. 14 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 74 of 215 CITY OF ATASCADERO STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2021 Program Revenues Expenses Charges for Services Operating Contributions and Grants Capital Contributions and Grants Net Governmental Activities Net Business-Type Activities Total Governmental activities: General government 3,775,014$ (182,111)$ 160,769$ -$ (3,796,356)$ -$ (3,796,356)$ Public safety 14,799,947 1,769,062 643,167 126,892 (12,260,826) - (12,260,826) Community development 2,675,072 1,203,073 44,974 175,389 (1,251,636) - (1,251,636) 2,437,541 780,395 49,731 60,767 (1,546,648) - (1,546,648) Parks & open space 1,297,724 17,178 10,423 280,802 (989,321) - (989,321) Public works 3,531,980 253,009 765,955 2,300,386 (212,630) - (212,630) Interest on long-term debt 706,901 - - - (706,901) - (706,901) Total governmental activities 29,224,179 3,840,606 1,675,019 2,944,236 (20,764,318) - (20,764,318) Business-type activities: Sewer 2,642,732 3,187,289 - - - 544,557 544,557 Transit 505,402 15,145 375,145 - - (115,112) (115,112) Total business-type activities 3,148,134 3,202,434 375,145 - - 429,445 429,445 Total government 32,372,313$ 7,043,040$ 2,050,164$ 2,944,236$ (20,764,318) 429,445 (20,334,873) General revenues Taxes: Secured and unsecured property taxes 11,740,280 - 11,740,280 Sales tax and payments in lieu of sales tax 8,976,357 - 8,976,357 Transient lodging tax 1,385,896 - 1,385,896 Franchise taxes 1,232,615 - 1,232,615 Business license tax 170,544 - 170,544 Property transfer tax 214,195 - 214,195 Other taxes 370,948 - 370,948 Motor vehicle in lieu 22,045 - 22,045 Investment income 194,021 22,921 216,942 Interest from Successor Agency 635,984 - 635,984 Gain on sale of capital assets - 9,525 9,525 Total general revenues 24,942,885 32,446 24,975,331 Change in net position before extraordinary item 4,178,567 461,891 4,640,458 Extraordinary gain/(loss)- Write-off of Redevelopment Loans (1,375,175) - (1,375,175) Change in net position 2,803,392 461,891 3,265,283 Net position at beginning of fiscal year 157,414,754 25,083,000 182,497,754 Net position at end of fiscal year 160,218,146$ 25,544,891$ 185,763,037$ Net (Expense) Revenue and Changes in Net Position Community, recreation & zoo services The notes to the basic financial statements are an integral part of this statement. 15 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 75 of 215 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET June 30, 2021 General Fund In Lieu Low / Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund 2010 Bond Debt Service Fund Totals ASSETS Cash and investments 15,281,100$ 1,314,052$ 4,039,345$ -$ -$ 11,060,594$ 31,695,091$ Restricted cash and investments: - - - - 1,404,765 - 1,404,765 Certificates of deposit 85,473 - - - - - 85,473 Receivables: Federal distributions due 113,661 - - - - 579,870 693,531 Due from State of California 2,461,270 - - - - 117,411 2,578,681 181,985 - 24,335 - - 9,081 215,401 Accrued interest 38,542 3,192 10,122 - - 27,931 79,787 Other receivables 719,305 - - - - 101,527 820,832 Due from other funds 214,620 - - - - 739,841 954,461 Deposits, prepaid items, and inventory 17,417 - - - - 730 18,147 Notes receivable - 4,557,430 - - - - 4,557,430 Advances receivable- Successor Agency - - - - 14,370,000 - 14,370,000 Total assets 19,113,373$ 5,874,674$ 4,073,802$ -$ 15,774,765$ 12,636,985$ 57,473,599$ Other NonMajor Governmental Funds Cash and investments with fiscal agent Due from County of San Luis Obispo The notes to the basic financial statements are an integral part of this statement. 16 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 76 of 215 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET (continued) June 30, 2021 General Fund In Lieu Low / Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund 2010 Bond Debt Service Fund Totals LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 845,236$ -$ 33,771$ -$ -$ 432,184$ 1,311,191$ Accrued salaries and benefits 639,132 - - - - 14,159 653,291 Due to other funds - - - 739,841 - 206,779 946,620 Unearned revenue 128,785 - 1,190,029 - - 170,223 1,489,037 Deposits 82,416 - - - - - 82,416 Other payables 81,651 - - - - - 81,651 Total liabilities 1,777,220 - 1,223,800 739,841 - 823,345 4,564,206 Fund Balances: Nonspendable 102,890 - - - - 730 103,620 Restricted 783,106 5,874,674 2,850,002 - 15,774,765 11,582,085 36,864,632 Assigned for road projects - - - - - 230,825 230,825 Unassigned 16,450,157 - - (739,841) - - 15,710,316 Total fund balances 17,336,153 5,874,674 2,850,002 (739,841) 15,774,765 11,813,640 52,909,393 19,113,373$ 5,874,674$ 4,073,802$ -$ 15,774,765$ 12,636,985$ 57,473,599$ Other NonMajor Governmental Funds Total liabilities and fund balances The notes to the basic financial statements are an integral part of this statement. 17 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 77 of 215 CITY OF ATASCADERO RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET TO THE STATEMENT OF NET POSITION Total fund balances - governmental funds 52,909,393$ In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation. Capital assets at historical cost 123,445,454$ Accumulated depreciation (31,961,413) Net 91,484,041 In governmental funds, interest on long-term debt is not recognized until the period in which it matures and is paid. In the government-wide statement of activities, it is recognized in the period that it is incurred.(174,430) In governmental funds, the receivable from the Successor Agency related to interest on the 2010 long-term debt is 174,430 Long-term liabilities: In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities consist of: Bonds payable 14,370,000 Workers' Compensation estimated claims liability in excess of deposits (47,908) Compensated absences payable 1,460,968 CalPERS pension liability 28,724,057 Other Post Employment Benefits 223,297 (44,730,414) The deferred outflows below are not current assets or financial resources; and the deferred inflows are not due and payable in the current period and therefore are not reported in the Governmental Funds. Deferred outflows 6,624,224 Deferred inflows (595,070) In governmental funds, premiums are recognized when the bonds are issued. In the government-wide statement of activities, these are recorded as a liability and amortized over the life of the bond.(57,458) June 30, 2021 not recognized until the period in which it is paid. In the government-wide statement of activities, it is recognized in the period that it is incurred. The notes to the basic financial statements are an integral part of this statement. 18 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 78 of 215 CITY OF ATASCADERO RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET TO THE STATEMENT OF NET POSITION (continued) Internal service funds are used by management to charge the costs of various City activities to individual governmental and enterprise funds. The unrestricted net position of the internal service funds are included in the Governmental Activities in the Statement of Net Position.54,583,430$ Total net position, governmental activities 160,218,146$ June 30, 2021 The notes to the basic financial statements are an integral part of this statement. 19 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 79 of 215 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2021 General Fund In Lieu Low / Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund 2010 Bond Debt Service Fund Other NonMajor Governmental Funds Totals Revenues: Secured and unsecured property taxes 10,792,509$ -$ -$ -$ -$ 1,225,058$ 12,017,567$ Taxes based on sales and use 8,976,357 - - - - - 8,976,357 Franchise tax 1,232,615 - - - - - 1,232,615 Other taxes 1,819,618 - - - - - 1,819,618 Licenses and permits 754,420 175,389 238,790 1,741 - 467,362 1,637,702 Intergovernmental revenues: 22,045 - - - - - 22,045 Grants 155,648 - - - - 851,139 1,006,787 Other governmental revenues 535,247 - 24,335 - - 2,009,471 2,569,053 Charges for services: Public safety 1,676,188 - - - - - 1,676,188 Development 689,401 - - - - - 689,401 Recreation, parks, pavilion, and zoo 790,255 - - - - - 790,255 Other services 65,619 - - - - - 65,619 Fines and forfeitures 49,312 - - - - - 49,312 Use of money and property 106,561 4,819 10,906 - 638,389 53,110 813,785 Other revenues 1,384,715 - - - - 34,987 1,419,702 Total revenues 29,050,510 180,208 274,031 1,741 638,389 4,641,127 34,786,006 Motor vehicle in lieu The notes to the basic financial statements are an integral part of this statement. 20 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 80 of 215 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2021 General Fund In Lieu Low / Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund 2010 Bond Debt Service Fund Other NonMajor Governmental Funds Totals Expenditures: Current: General government 3,323,696$ -$ -$ -$ -$ 10,299$ 3,333,995$ Public safety 13,669,630 - - - - 96,798 13,766,428 Community development 2,299,859 45,400 - - 5,275 163,961 2,514,495 1,996,596 - - - - - 1,996,596 Parks and open space 708,729 - - - - 34,903 743,632 Public works 1,293,007 - - - - 1,173,091 2,466,098 Capital outlay 3,747,912 - 139,779 - - 2,121,752 6,009,443 Debt service: Principal - - - - 260,000 - 260,000 Interest - - - - 712,288 - 712,288 Total expenditures 27,039,429 45,400 139,779 - 977,563 3,600,804 31,802,975 Excess of revenues over (under) expenditures 2,011,081 134,808 134,252 1,741 (339,174) 1,040,323 2,983,031 Other Financing Sources (Uses): Transfers in 698,950 - - - - 353,655 1,052,605 Transfers out (255,067) - - - - (797,538) (1,052,605) Total other financing sources and uses 443,883 - - - - (443,883) - Net change in fund balances prior to extraordinary item 2,454,964 134,808 134,252 1,741 (339,174) 596,440 2,983,031 (1,375,175) - - - - - (1,375,175) Net change in fund balances 1,079,789 134,808 134,252 1,741 (339,174) 596,440 1,607,856 Fund balances - June 30, 2020 16,256,364 5,739,866 2,715,750 (741,582) 16,113,939 11,217,200 51,301,537 Fund balances - June 30, 2021 17,336,153$ 5,874,674$ 2,850,002$ (739,841)$ 15,774,765$ 11,813,640$ 52,909,393$ Community, recreation and zoo services Extraordinary gains/(losses)- Write-off of Redevelopment Loans The notes to the basic financial statements are an integral part of this statement. 21 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 81 of 215 CITY OF ATASCADERO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2021 Total net change in fund balance - governmental funds 1,607,856$ Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which additions to capital assets of $4,881,912 is greater than depreciation expense $(1,741,954) in the period.3,139,958 The sale or deletion of capital assets is not recorded in the governmental financial statements. In the statement of activities, however, the gain or loss from the sale or deletion is recorded as an appropriate program expense.(596,074) In governmental funds, repayments of long-term debt are reported as expenditures. In the government-wide statements, repayments of long-term debt are reported as reductions of liabilities.260,000 In governmental funds, the issuance premiums associated with long-term debt are reported as revenue in the fiscal year debt is issued. In the government-wide statements, the issuance premiums are recorded as liabilities and are amortized over the life of the related debt.2,982 In governmental funds, interest on long-term debt is recognized in the period that it becomes due. In the government-wide statement of activities, it is recognized in the period that it is incurred. Unmatured interest owing at the end of the period, less matured interest paid during the period but owing from the prior period was:(2,405) In governmental funds, reimbursement from the Successor Agency related to interest on the 2010 long-term debt is recognized in the period that it becomes due. In the government-wide statement of activities, it is recognized in the period that it is earned. 2,405 In the statement of activities, compensated absences are measured by the amounts earned during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts paid). This fiscal year, leave amounts used exceeded the amounts earned by:193,210 In governmental funds, pension costs are recognized when employer contributions are made. In the Statement of Activities, pension costs are recognized on the accrual basis. This year, the difference between accrual-basis pension costs and and actual employer contributions was:(1,369,160) In the statement of activities, changes to some claims and judgment liabilities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. 187,580 The notes to the basic financial statements are an integral part of this statement. 22 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 82 of 215 CITY OF ATASCADERO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES (continued) For the Fiscal Year Ended June 30, 2021 In the statement of activities, the long-term liability for Other Post Employment Benefits is recognized. The increase in the long-term liability does not require the use of current financial resources and is not reported in governmental funds.(7,817)$ Internal service funds are used by management to charge the costs of various City activities to individual governmental and enterprise funds. The change in the unrestricted net position of the internal service funds is included in the Governmental Activities in the Statement of Activities. This amount is the net of the change in net position ($1,047,031) less the capital contributions from other governmental funds ($1,414,762).(367,731) Certain revenues in governmental funds are unavailable because they cannot be used to meet current financial obligations. In the Statement of Activites, revenues are recognized when earned.(247,412) Changes in net position - governmental activities 2,803,392$ The notes to the basic financial statements are an integral part of this statement. 23 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 83 of 215 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30, 2021 Wastewater Fund Transit Fund Totals ASSETS Current Assets: Cash and investments 12,621,761$ -$ 12,621,761$ 9,974,057$ Receivables: Federal distributions due - 194,528 194,528 - Due from County of San Luis Obispo 63,150 45 63,195 - Accrued interest 32,129 (148) 31,981 23,716 Other receivables 38,918 132 39,050 - Prepaid expenses - 2,375 2,375 13,699 Total current assets 12,755,958 196,932 12,952,890 10,011,472 Capital Assets: Non-depreciable: Land 547,738 - 547,738 - Construction in progress 1,791,495 - 1,791,495 1,570,114 Depreciable: Vehicles and equipment 878,530 353,719 1,232,249 13,036,415 Structures and improvements 27,933,419 1,472,436 29,405,855 51,351,597 Accumulated depreciation (17,632,414) (851,704) (18,484,118) (20,281,180) Net capital assets 13,518,768 974,451 14,493,219 45,676,946 Total assets 26,274,726 1,171,383 27,446,109 55,688,418 DEFERRED OUTFLOWS Deferred outflows related to pensions 132,151 8,581 140,732 174,505 Total deferred outflows 132,151 8,581 140,732 174,505 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 24 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 84 of 215 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION (continued) June 30, 2021 Wastewater Fund Transit Fund Totals LIABILITIES Current Liabilities: Accounts payable 785,633$ 22,805$ 808,438$ 107,581$ Accrued salaries and benefits 20,397 1,265 21,662 24,209 Unearned revenue - 257,590 257,590 700 Due to other funds - 7,841 7,841 - Other payables 22,603 1,926 24,529 - Noncurrent Liabilities: Noncurrent liabilities 829,074 55,411 884,485 1,103,042 Total liabilities 1,657,707 346,838 2,004,545 1,235,532 DEFERRED INFLOWS Deferred inflows related to pensions 34,881 2,524 37,405 43,961 Total deferred inflows 34,881 2,524 37,405 43,961 NET POSITION Net investment in capital assets 13,518,768 974,451 14,493,219 45,676,946 Unrestricted 11,195,521 (143,849) 11,051,672 8,906,484 Total net position 24,714,289$ 830,602$ 25,544,891$ 54,583,430$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 25 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 85 of 215 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2021 Wastewater Fund Transit Fund Totals Operating Revenues: Service fees 2,879,841$ 15,145$ 2,894,986$ 1,820,100$ Installation, extension, and connection fees 307,448 - 307,448 - Total operating revenues 3,187,289 15,145 3,202,434 1,820,100 Operating Expenses: Salaries and benefits 693,972 44,044 738,016 840,965 Office expense 2,518 486 3,004 441 Advertising 194 - 194 - Computer maintenance and replacement 33,385 23,720 57,105 3,370 Insurance 31,365 6,314 37,679 68,679 Occupancy and rental costs 11,222 2,270 13,492 43,190 Utilities 321,924 - 321,924 90,338 Communications 9,907 1,336 11,243 71,538 Operating supplies 108,919 116 109,035 43,459 Vehicle and equipment operating costs 102,153 27,937 130,090 11,471 Contract services 157,132 118,124 275,256 147,604 Professional development 6,853 60 6,913 3,273 Recruitment - 324 324 - Franchise fees 55,800 - 55,800 - Administrative charges 357,080 164,060 521,140 73,850 Special projects: Shelving/Storage 771 - 771 - Manhole rehabilitation projects 35,351 - 35,351 - Wastewater fee study 12,141 - 12,141 - Sewer System Management Plan Audit 3,530 - 3,530 - Proposition 218 majority protest-rate increase 86 - 86 - Monitors - - - 1,409 Wireless networks - - - 1,102 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 26 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 86 of 215 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2021 Wastewater Fund Transit Fund Totals Operating Expenses (continued): Depreciation 698,429$ 116,611$ 815,040$ 1,950,037$ Total operating expenses 2,642,732 505,402 3,148,134 3,350,726 Operating income (loss)544,557 (490,257) 54,300 (1,530,626) Non-Operating Revenues (Expenses): CARES Act funding - Operations - 373,645 373,645 - Interest income 24,608 (1,687) 22,921 29,425 Bus advertising sales - 1,500 1,500 - Gain / (loss) on sale of capital assets - 9,525 9,525 5,940 Total non-operating revenues 24,608 382,983 407,591 35,365 Change in net position prior to capital contributions 569,165 (107,274) 461,891 (1,495,261) Capital Contributions: Cash contributions from other funds - - - 1,127,530 Capital contributions from other funds - - - 1,414,762 Total capital contributions - - - 2,542,292 Change in net position 569,165 (107,274) 461,891 1,047,031 Total net position, June 30, 2020 24,145,124 937,876 25,083,000 53,536,399 Total net position, June 30, 2021 24,714,289$ 830,602$ 25,544,891$ 54,583,430$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 27 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 87 of 215 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2021 Wastewater Fund Transit Fund Totals Cash Flows From Operating Activities: Receipts from customers 3,182,649$ 16,540$ 3,199,189$ -$ Internal activity - payments from other funds - - - 1,820,100 Payments to suppliers of goods and services (698,128) (330,120) (1,028,248) (477,835) Payments for employee services (654,818) (42,350) (697,168) (798,670) Net cash provided (used) by operating activities 1,829,703 (355,930) 1,473,773 543,595 - 581,530 581,530 - - 1,500 1,500 - - (234,127) (234,127) - Net cash provided by non-capital related financing activities - 348,903 348,903 - Acquisition of capital assets (1,460,179) - (1,460,179) (647,312) Cash contributions for capital purchases - - - 1,127,530 Proceeds from sale of capital assets - 9,525 9,525 5,940 Net cash provided (used) by capital and related financing activities (1,460,179) 9,525 (1,450,654) 486,158 Internal Service Funds Enterprise Funds Cash Flows From Non-Capital Financing Activities: Cash Flows From Capital and Related Financing Activities: Loans / repayments to other funds Receipts from intergovernmental agencies Receipts from bus advertising sales The notes to the basic financial statements are an integral part of this statement. 28 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 88 of 215 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2021 Wastewater Fund Transit Fund Totals Cash Flows From Investing Activities: Interest income 24,323$ (2,498)$ 21,825$ 28,987$ Net cash provided (used) by investing activities 24,323 (2,498) 21,825 28,987 Net increase in cash and cash equivalents 393,847 - 393,847 1,058,740 Cash and cash equivalents - June 30, 2020 12,227,914 - 12,227,914 8,915,317 Cash and cash equivalents - June 30, 2021 12,621,761$ -$ 12,621,761$ 9,974,057$ Operating income (loss)544,557$ (490,257)$ 54,300$ (1,530,626)$ Depreciation expense 698,429 116,611 815,040 1,950,037 Receivables, net (4,640) 1,395 (3,245) - Prepaid expenses 1,890 - 1,890 16,633 Accounts payable 550,313 14,627 564,940 66,723 Accrued salaries and benefits (2,425) (10) (2,435) (813) Deferred outflows (9,230) (408) (9,638) (12,557) Deferred inflows (13,968) (617) (14,585) (19,006) Net pension liability 61,782 2,729 64,511 84,061 Compensated absences 2,995 - 2,995 (10,857) Net cash provided (used) by operating activities 1,829,703$ (355,930)$ 1,473,773$ 543,595$ Change in assets, deferred outflows, liabilities, and deferred inflows: Internal Service Funds Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 29 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 89 of 215 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF FIDUCIARY NET POSITION June 30, 2021 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals ASSETS Cash and investments $ 1,626,972 $ - 1,626,972$ Restricted cash and investments: 873,535 - 873,535 Receivables: Accrued interest 3,814 - 3,814 Other receivables 350 - 350 Notes receivable - 200,000 200,000 Due from Successor Agency - 1,335,322 1,335,322 Total assets 2,504,671 1,535,322 4,039,993 LIABILITIES Accounts payable 2,670 - 2,670 Unearned revenue 474,391 - 474,391 Interest payable 311,581 - 311,581 Due to Successor Agency Housing Fund 1,335,322 - 1,335,322 Premium on bonds payable 22,371 - 22,371 2004 Bonds Payable 8,435,000 - 8,435,000 14,370,000 - 14,370,000 Total liabilities 24,951,335 - 24,951,335 NET POSITION Held in trust for taxing agencies (22,446,664)$ 1,535,322$ (20,911,342)$ Successor Agency to the Atascadero Community Redevelopment Agency Cash with fiscal agent 2010 Bond Reimbursement Agreement Payable to City of Atascadero The notes to the basic financial statements are an integral part of this statement. 30 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 90 of 215 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Fiscal Year Ended June 30, 2021 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals ADDITIONS Contributions: RPTTF Distributions 1,819,716$ -$ 1,819,716$ Investment earnings: Interest (9,824) - (9,824) Total additions 1,809,892 - 1,809,892 DEDUCTIONS Payment on outstanding services contracts 2,420 - 2,420 Administrative costs 47,020 - 47,020 2004 Bond Interest Expense 412,842 - 412,842 2010 Bond Reimbursement Interest Expense 717,563 - 717,563 Total deductions 1,179,845 - 1,179,845 Extraordinary Item 1,375,175 - 1,375,175 Change in net position 2,005,222 - 2,005,222 Net position - June 30, 2020 (24,451,886) 1,535,322 (22,916,564) Net position - June 30, 2021 (22,446,664)$ 1,535,322$ (20,911,342)$ Elimination of Loans Payable to City of Atascadero The notes to the basic financial statements are an integral part of this statement. 31 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 91 of 215 NOTES TO THE BASIC FINANCIAL STATEMENTS ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 92 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The accompanying basic financial statements present the financial activity of the City, which is the primary government . The reporting entity is the City of Atascadero. There are no component units included in this report which meet the reporting entity definition criteria of GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, GASB Statement No. 61, and GASB Statement No. 80. B. Basis of Presentation The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard-setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America. The accompanying financial statements are presented on the basis set forth in Governmental Accounting Standards Board Stateme nts No. 34, Basic Financial Statements—Management’s Discussion and Analysis—for State and Local Governments; No. 36, Recipient Reporting for Certain Non-Exchange Revenues, an Amendment of GASB Statement No. 33; No. 37, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Government – Omnibus; and No. 38, Certain Financial Statement Note Disclosures. These statements require that the financial statements described below be presented. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report inf ormation on the primary government and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment . Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contrib utions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and private purpose trust funds. Major individual governmental funds and m ajor individual enterprise funds are reported as separate columns in the fund financial statements. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 93 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Major Funds GASB Statement No. 34 defines major funds and requires that the City’s major governmental funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund -type. Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund -type total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. The City reported the following major governmental funds in the accompanying financial statements: General Fund This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City. In Lieu Low/Moderate Income Housing Fund This fund accounts for fees that are paid by developers in lieu of building inclusionary (affordable) housing. These fees are expended on programs that provide and/or promote affordable housing within the City. Circulation System Fees Fund This fund accounts for fees that are paid by developers to fund the creation of more lane miles or more efficient lane miles with w hich to accommodate the additional trips created by new development. These fees are expended for the construction of new/increased/improved roadway and bridge facilities. Fire Aerial Vehicle Impact Fees Fund This fund accounts for impact fees imposed on commercial and multi-family residential developments for the purpose of contributing toward the purchase of the Aerial Fire Truck (Ladder Truck). The City purchased this truck in fiscal year 2007-2008 using future revenues. 2010 Bond Debt Service Fund This fund accounts for the debt service payments for the Lease Revenue Bonds that were issued on September 1, 2010. The City reported the following major proprietary funds: Wastewater Fund This fund accounts for the activities associated with the City’s sewer plant operation and maintenance. Transit Fund This fund accounts for the activities associated with the operation and maintenance of transportation services, such as and including the Dial-a-Ride Transit System. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 94 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Internal Service Funds The Internal Service Funds are used to account for services rendered on a cost-reimbursement basis within the City. The City maintains three internal service funds: the Technology Fund, the Vehicle and Equipment Replacement Fund, and the Building Maintenance and Replacement Fund. The Internal Service Funds are presented in total on the Proprietary Funds financial statements. They are included in the governmental activities in the government-wide financial statements since they represent internal governmental activities. E. Private Purpose Trust Funds Private Purpose Trust Funds are used to account for monies held on behalf of others in a fiduciary capacity. The City uses p rivate purpose trust funds to account for the Successor Agency of the Former Redevelopment Agency which was dissolved on January 31, 2012, pursuant to state law. All resources of the funds are used to support specified activities. F. Basis of Accounting The government-wide, proprietary fund financial statements, and the private purpose trust fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of acc ounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after fiscal year end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent that they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under capital leases are reported as other financing sources. Proprietary funds distinguish operating revenues from nonoperating revenues. Operating revenues generally result from providi ng services in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Wastewater Fund and the Transit Fund are charges to customers for services. The Wastewater Fund also recognizes as operating revenue the installation, extension and connections fees intended to recover the cost of connecting new customers to the system. All revenues not meeting these definitions are reported as non-operating revenues, including non- exchange transactions such as local transportation funds and federal Section 5307 revenues. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange , include property taxes, grants, entitlements, and donations. On an accrual basis, revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 95 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Basis of Accounting (continued) Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net assets may be available to finance program expenditures/expenses. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. G. Compensated Absences In compliance with Governmental Accounting Standards Board Statement No. 16, the City has established a liability for accrued vacation, other leave and certain sick leave in relevant funds. For governmental funds, the current liability appears in the respective funds. All vacation, sick, and other leave paid is accrued when incurred in the government-wide and proprietary funds financial statements. This liability is set up for the current employees at the current rates of pay. If vacation and certain other leave are not used by the employee during the term of employment, compensation is payable to the employee at the time of retirement or termination. Such compensation is calculated at the employee’s prevailing rate at the time of retirement or termination. Each fiscal year, an adjustment to the liability is made based on pay rate changes and adjustments for the current portion. The General Fund is primarily responsible for the repayment of the governmental portion of compensated absences. H. Property Taxes California Constitution Article XIII A limits the combined property tax rate to one percent of a property’s assessed valuation. Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property’s fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership or new construction occurs. The state legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions. Property tax revenues are recognized in the fiscal year for which taxes have been levied, and collected within sixty days of fiscal year end. Property taxes are billed and collected as follows: Secured Unsecured Valuation/Lien Date(s) January 1 January 1 Levy Date(s) July 1 July 1 Due Date(s) November 1 (50%) August 1 February 1 (50%) Delinquency Date(s) December 10 (Nov.) August 31 April 10 (Feb.) The City adopted an alternative method of property tax distribution (the “Teeter Plan”). Under this method, the City receives 100% of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives payments as a series of advances made by the County throughout the fiscal year. The secured property tax levy is recognized as revenue upon receipt , including the final payment, which generally is received within 60 days after the fiscal year end. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 96 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I. Capital Assets Additions and Retirements Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contribu ted capital assets are valued at their estimated fair value on the date contributed. The City’s policy is to capitalize all capital assets with costs exceeding a minimum of $2,500, and with useful lives exceeding one year. In the Technology Fund, the City uses a lower cost threshold to capitalize assets due to the nature of the assets . With the implementation of GASB Statement No. 34, the City has recorded all its public domain (infrastructure) capital assets , which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems. The City’s collection of zoo animals is not capitalized. The collection of animals is held for public education purposes, is well cared for, and there is a City commitment to continue the collection. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each fiscal year represents that fiscal year’s pro rata share of the cost of capital assets. GASB Statement No. 34 re quires that all capital assets with limited useful lives be depreciated over their estimated useful lives. Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each fiscal year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets. Structures and Improvements 3-100 years Equipment 3-25 years Infrastructure 15-100 years J. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of A merica, as prescribed by the GASB and the American Institute of Certified Public Accountants, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. K. Cash and Cash Equivalents For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Proprietary Funds’ “deposits” in the Citywide cash management pool are, in substance, demand deposits and ar e, therefore, considered cash equivalents for purposes of the statement of cash flows. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 97 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) L. Performance Bonds The City receives performance bonds from developers to ensure compliance and completion of projects that affect the City’s in frastructure. These commitments may be in the form of cash, certificates of deposit in the City’s name, letters of credit, or surety bonds. Upon receipt, these deposits are recorded both as an asset and a liability. For purposes of simplifying the balance sheet, the performance bonds asset account in the am ount of $10,843,125 was netted against the liability account of $10,900,044 in fiscal year 2021. The net balance in the performance bond deposits liability account at June 30, 2021, was $56,919 and is included with other amounts in the “Deposits” liability reported in the basic financial statements. M. Short-Term Debt The City has no short-term debt. N. Long-Term Contracts The City uses the percentage-of-completion method of accounting for long-term contracts, recognizing the pro rata portion of the contract in the accounting period covered by the contract. O. Fund Balance Categories of Fund Balance In accordance with Government Accounting Standards Board Statement No. 54, the City classifies fund balances as follows: Non-spendable- includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual constraints Restricted- includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, s uch as creditors or amounts constrained due to constitutional provisions or enabling legislation Committed- includes amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council Assigned- includes fund balance amounts that are constrained for specific purposes by the City through formal action of the City Council and does not lapse at fiscal year end Unassigned- includes positive fund balance within the General Fund which has not been classified within the above-mentioned categories and negative fund balances in other governmental funds Non-Spendable Fund Balance The non-spendable fund balance of $103,620 is comprised of amounts reported in non-spendable form and/or not in cash form such as prepaid items and deposits. Restricted Fund Balance The restricted fund balance of $36,864,632 is comprised of $783,106 for economic development to offset the impact of the impending closure of Pacific Gas and Electric’s Diablo Canyon Power Plant, $5,874,674 for affordable housing, $15,774,765 restricted for debt service, and $14,432,087 restricted for other Capital Project Funds and Special Revenue Funds. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 98 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Fund Balance (continued) Assigned Fund Balance The assigned for road projects fund balance of $230,825 is held in the Capital Projects Fund for road rehabilitation projects. These funds remain from the City Council’s action to move funds annually in fiscal years 2001/2002 through 2007/2 008 for these projects, and associated interest earnings. Use of Fund Balance Order The City budgets and expends funds for each project or expense based on specific identified funding sources that are available now and in the future. This means that, at times, the City may use unrestricted funds first for a particular project, leaving the eligible restricted funds available for a spe cific future project; however, it is the City’s general policy to use restricted amounts first when both restricted and unr estricted amounts are available. Similarly, the City would typically first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. Minimum Fund Balance Policy The City adopted a formal fund balance policy stating that as part of the biennial budget process, fund balance shall be evaluated to determine the prudent level of reserves based on eleven key measurements. The policy further states that except in the case of natural or fiscal e mergencies, the City’s general fund balance shall not fall below 20% of General Fund expenditures. The General Fund reserve met this criterion for fiscal year 2020-2021. Major Special Revenue and Capital Projects Funds The purpose for each major fund may be found in Note 1(C); however, each major special revenue and capital projects fund and its revenue source is listed below: Major Special Revenue and Debt Service Funds Revenue Source In Lieu Low/Moderate Income Housing Fund New Developments Circulation System Fees Fund Development Impact Fees Fire Aerial Vehicle Impact Fees Fund Development Impact Fees 2010 Bond Debt Service Fund Successor Agency Tax Increment ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 99 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Fund Balance (continued) Detailed Schedule of Fund Balances A detailed schedule of fund balances is provided below: General Fund In Lieu Low/Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund 2010 Bond Debt Service Fund Totals FUND BALANCES: Nonspendable 102,890$ -$ -$ -$ -$ 730$ 103,620$ Restricted Public Safety - - - - - 1,803,205 1,803,205 Streets, Roads, and Drainage - - 2,850,002 - - 6,646,536 9,496,538 Parks, Open Space, and Recreation - - - - - 2,193,088 2,193,088 783,106 - - - - 939,256 1,722,362 Affordable Housing - 5,874,674 - - - - 5,874,674 Debt Service - - - - 15,774,765 - 15,774,765 Assigned Roads Projects - - - - - 230,825 230,825 Unassigned 16,450,157 - - (739,841) - - 15,710,316 Total Fund Balances 17,336,153$ 5,874,674$ 2,850,002$ (739,841)$ 15,774,765$ 11,813,640$ 52,909,393$ Other NonMajor Governmental Funds Disclosure of Fund Balances Reported on Balance Sheet June 30, 2021 Community Development and Blight Elimination Deposits, prepaid items, and inventory ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 100 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 40 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) P. New GASB Pronouncements GASB Statements listed below will be implemented in future financial statements: Statement No. 87 "Leases"The provisions of this statement are effective for fiscal years beginning after June 15, 2021. Statement No. 89 "Accounting for Interest Cost Incurred before the End of a Construction Period" The provisions of this statement are effective for fiscal years beginning after December 15, 2020. Statement No. 91 "Conduit Debt Obligations"The provisions of this statement are effective for fiscal years beginning after December 15, 2021. Statement No. 92 "Omnibus 2020"The provisions of this statement are effective for fiscal years beginning after June 15, 2021. Statement No. 93 "Replacement of Interbank Offered Rates" The provision of this statement except for paragraphs 11b, 13, and 14 are effective for fiscal years beginning after June 15, 2020. Paragraph 11b is effective for fiscal years beginning after December 31, 2021. Paragraphs years beginning after December 31, 2021. Paragraphs 13 and 14 are effective for fiscal years beginning after June 15, 2021. Statement No. 94 "Public-Private and Public-Public Partnerships and Availability Payment Arrangements"The provisions of this statement are effective for fiscal years beginning after June 15, 2022. Statement No. 96 "Subscription-Based Information Technology Arrangements"The provisions of this statement are effective for fiscal years beginning after June 15, 2022. Statement No. 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"The provisions of this statement are effective for fiscal years beginning December 15, 2019. Q. Deferred Outflows and Inflows of Resources Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position , and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognizes deferred outflows and inflows of resources. In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred ou tflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period. The City has one item which qualifies for reporting in this category; refer to Note 9 for a detailed listing of the deferred outflows of resources the City has recognized. In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of re sources. A deferred inflow of resources is defined as an acquisition of net position by the City that is applicable to a future re porting period. The City has one item which qualifies for reporting in this category; refer to Note 9 for a detailed list of the deferred inflows of revenues the City recognized. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 101 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 41 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) R. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions and pensio n expense, information about the fiduciary net position of the City of Atascadero’s California Employees’ Retirement Syst em (CalPERS) Plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit p ayments (including refunds of employee contributions) are recogn ized when due and payable in accordance with the benefit terms. Investments are reported at fair value. NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information Biennial budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds. After adoption of the final budget, transfers of appropriations within a general fund department, or within other funds, can be made by the City Manager or her appointee. Budget modifications between funds, and increases or decreases to a fund’s overall budget, must be approved by the City Council. Numerous properly authorized amendments were made during the fiscal year. Budgetary control is enhanced by integrating the budget into the general ledger accounts. Encumbrance accounting is employed (e.g., purchase orders) to avoid expenditures over budget. Encumbrances outstanding at fiscal year-end are automatically re-budgeted in the following fiscal year. B. Deficit Fund Balance A deficit fund balance in the following fund exists due to large purchases incurred prior to the receipt of the long-term reimbursing revenues: Deficit Fund Balance Major Governmental Fund Fire Aerial Vehicle Impact Fees Fund (739,841)$ C. Excess of Expenditures over Appropriations Excess Expenditures Major Governmental Fund 2010 Bond Debt Service Fund (2,673)$ Expenditures exceeded projections in the above fund due to costs for insurance coverage per the bond covenants. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 102 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 42 NOTE 3 – CASH AND INVESTMENTS Cash balances from all funds are combined and invested to the extent possible, pursuant to the Investment Policy and Guidelines approved by the City Council, as well as State Government Code. The earnings from these investments are allocated monthly to each fund, based on an average of monthly opening and closing balances of cash and investments. Investments are stated at fair value. Cash and investments at June 30, 2021, consisted of the following: Pooled Cash and Investments: Cash in bank and on hand 186,661$ Investments 33,265,773 Broker Money Market Account 48,686 Local Agency Investment Fund (LAIF)22,502,234 Total Pooled Cash and Investments 56,003,354 Funds with Fiscal Agents: United States Treasury Money Fund 2,278,300 Total Funds with Fiscal Agents 2,278,300 Total Cash and Investments 58,281,654$ Cash and investments are reflected in the accompanying financial statements as follows: Governmental Activities Business- Type Activities Private-Purpose Trust Funds Total Cash and investments 41,669,148$ 12,621,761$ 1,626,972$ 55,917,881$ Cash and investments held by fiscal agents 1,404,765 - 873,535 2,278,300 Restricted certificates of deposit 85,473 - - 85,473 Total Cash and Investments 43,159,386$ 12,621,761$ 2,500,507$ 58,281,654$ ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 103 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 43 NOTE 3 – CASH AND INVESTMENTS (continued) A. Deposits with Financial Institutions For custodial credit risk associated with deposits, the City follows the California Government Code, which requires California financial institutions to secure the City’s deposits by pledging government securities as collateral. The fair value of the pledged securities must equal 110% of the City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes equal to 150% of the City’s deposits. At fiscal year end, the City’s bank account balance was $248,959. The balance was insured by federal depository insurance. Certificates of Deposit totaling $14,055,974 are fully insured. B. State Investment Pool The fair value of the City’s position in the State LAIF pool is the same as the value of the pool shares. The State LAIF pool credit quality is unrated. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. Separate financial statements for LAIF can be obtained by writing Local Agency Investment Fund, Post Office Box 942809, Sacramento, CA 94209-0001. C. Authorized Investments The City’s Investment Policy lists the following as authorized investments: Local Agency Investment Fund (LAIF) U.S. Government Obligations California and California Local Agency Municipal Obligations Other State Municipal Obligations Supranational Securities Bankers’ Acceptances Commercial Paper Certificates of Deposit and Passbook Savings Accounts Money Market Funds D. Marking Investments to Fair Value (GASB Statement No. 31) In fiscal year 1997/98, the City adopted Governmental Accounting Standards Board Statement No. 31, which requires that the City’s investments be carried at fair value instead of cost. Under GASB Statement No. 31, the City must adjust the carrying value of its investments to reflect their fair value at each fiscal year end, and it must include the effects of these adjustments in income for that fiscal year. GASB Statement No. 31 applies to all City investments, even if held to maturity and redeemed at full face value. Since the City’s policy is to hold all investments to maturity, the fair value adjustments required by GASB Statement No. 31 result in accounting gains or losses (called “recognized” gains or losses) which do not reflect actual sales of the investments (called “realized” gains or losses). Thus, recognized gains or losses on an investment purchased at par will now reflect changes in its value at each succeeding fiscal year end, but these recognized gains or losses will net to zero if the investment is held to maturity. By following the requirements of GASB Statement No. 31, the City is reporting the amount of resources which would actually have been available if it had been required to liquidate all of its investments at any fiscal year end. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 104 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 44 NOTE 3 – CASH AND INVESTMENTS (continued) E. Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurements and Application, provides the framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques use d to measure fair value with Level 1 given the highest priority and Level 3 the lowest priority. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the organization has the abi lity to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following: 1. Quoted prices for similar assets or liabilities in active markets. 2. Quoted prices for identical or similar assets or liabilities in markets that are not active. 3. Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default ra tes). 4. Inputs that are derived principally from or corroborated by observable market data by correlation or other means (market -corroborated inputs). Level 3 inputs are unobservable inputs for the asset or liability. Fair value of assets measured on a recurring basis at June 30, 2021, are as follows: June 30, 2021 Fair Value Quoted Prices in Active Markets for Identical Assets (Level1) Significant Other Observable Inputs (Level 2) Uncategorized (Level 3) U. S. Government Obligations 13,443,543$ -$ 13,443,543$ -$ Supranational Securities 3,632,030 - 3,632,030 - Municipal Securities 2,134,226 - 2,134,226 - Certificates of Deposit 14,055,974 - 14,055,974 - Broker Money Market Account 48,686 - 48,686 - United States Treasury Money Fund 2,278,300 - 2,278,300 - 35,592,759 -$ 35,592,759$ -$ Investments measured at amortized cost Local Agency Investment Fund (LAIF)22,502,234 Total investments 58,094,993$ Fair values for investments are determined by using a matrix pricing technique. Matrix pricing is used to value securities ba sed on the security’s relationship to benchmark quoted prices. Uncategorized investments do not fall under the fair value hierarchy as there is no active market for the inve stments. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 105 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 45 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments Investments for the City are summarized below: Investments Fair Value Percent of Portfolio U.S. Government Obligations 13,443,543$ 24% Supranational Securities 3,632,030 7% Municipal Securities 2,134,226 4% Certificates of Deposit 14,055,974 25% Broker Money Market 48,686 0% Local Agency Investment Fund (LAIF)22,502,234 40% Total Investments Managed by City 55,816,693$ 100% Investments Held by Fiscal Agents United States Treasury Money Fund 2,278,300$ 100% Total Investments Held by Fiscal Agents 2,278,300$ 100% Fair Value On Demand Within One Month One Month to One Year One to Five Years Investments U.S. Government Obligations 13,443,543$ -$ -$ 3,035,575$ 10,407,968$ Supranational Securities 3,632,030 - - - 3,632,030 Municipal Securities 2,134,226 - - - 2,134,226 Certificates of Deposit 14,055,974 - - 2,378,320 11,677,654 * Broker Money Market 48,686 - 48,686 - - Local Agency Investment Fund (LAIF)22,502,234 22,502,234 - - - Investments Held by Fiscal Agents 2,278,300 2,278,300 **- - - Total Investments Managed by City 58,094,993$ 24,780,534$ 48,686$ 5,413,895$ 27,851,878$ Percentage of Portfolio 100%43%0%9%48% * $85,473 in certificates of deposit with a local bank, serving as collateral for the Local Road Improvement Loan Program, approved by Council on June 14, 2005. ** Held by fiscal agents for the 2010 Lease Revenue Bonds and the 2004 Tax Allocation Bonds ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 106 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 46 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments (continued) Interest Rate Risk. This is the risk that the market value of securities in the portfolio will fall, due to changes in general interest rates. In accordance with its Investment Policy, the City mitigates interest rate risk by: • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoi ding the need to sell securities on the open market prior to maturity. • Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pool. Credit Risk. This is the risk of loss due to the failure of the security issuer or back er. The City mitigates credit risk by: • Limiting investments to the safest types of securities. • Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business. • Diversifying the investment portfolio so that potential losses on individual securities will be minimized. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by Nationally Recognized Statistical Rating Organizations (NRSROs). It is the City’s policy to limit its investments in these investment types to the top rating issued by NRSROs. Th e City does not hold any commercial paper or corporate bonds. U. S. Government Obligations held by the City are rated AAA, the top rating issued by NRSROs. The City’s investment in the State LAIF pool is unrated, as are the investments in Certificates of Deposit. Fair Value AAA Not Rated Investments U. S. Government Obligations 13,443,543$ 13,443,543$ -$ Supranational Securities 3,632,030 3,632,030 - Municipal Securities 2,134,226 - 2,134,226 Certificates of Deposit 14,055,974 - 14,055,974 Broker Money Market 48,686 - 48,686 Local Agency Investment Fund (LAIF)22,502,234 - 22,502,234 Investments Held by Fiscal Agents 2,278,300 - 2,278,300 Total Investments Managed by City 58,094,993$ 17,075,573$ 41,019,420$ Rating as of June 30, 2021 Custodial Credit Risk. Custodial credit risk is the risk that in the event of failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investments in government securities are held in trust by Union Bank and are exposed to custodial credit risk because these investments are uninsured and collateralized with securities held by the Union Bank’s trust department or agency, but not in the City’s name. The amounts held under this custodial arrangement are not limited by the City’s Investment Policy. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 107 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 47 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments (continued) Concentration Credit Risk. The City’s Investment Policy provides guidelines (by type of investment vehicle that limits either the dollar amount, the percent of the portfolio or the maturity term) for diversifying the investment portfolio so that potential losses on individual securiti es will be minimized. The City’s Investment Policy outlines the following criteria related to portfolio diversification: • No more than thirty percent (30%) of the City’s portfolio shall be invested in California and California local agency municipal obligations, and other state municipal obligations. • Up to forty percent (40%) of the City’s portfolio may be invested in bankers’ acceptances that are defined as bills of exchange or time drafts, drawn on and accepted by a commercial bank, which are eligible for purchase by the Federal Reserve System, although no more t han thirty percent (30%) of the portfolio may be invested in bankers’ acceptances with any one commercial bank. Additionally, the maturity periods cannot exceed 180 days. • A maximum of twenty-five percent (25%) of the City’s portfolio may be invested in highest tier (e.g., A-1, P-1, F-1 or D-1 or higher) commercial paper as rated by Moody’s or Standard and Poor’s rating service. Issuing corporations must be organized and operating in the United States, have $500 million total assets, and have at least an “A” rating (by Mood y’s or Standard and Poor’s) on debt other than commercial paper. The maturity period cannot exceed 270 days . Purchases of eligible commercial paper may not exceed 10% of the outstanding paper of an issuing corporation. • A maximum of thirty percent (30%) of the City’s portfolio may be deposited in certificates of deposit or passbook savings account s. The minimum requirements for certificate of deposit investments shall be: o Investments and accrued interest shall never exceed the FDIC insurance limit in any on e institution. o Qualified institutions must have a minimum equity ratio of 6% and a minimum capitalization of $10,000,000. • Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Secur ities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec 80a-l et seq.) shall not exceed twenty percent (20%) of the agency's surplus money that may be invested pursuant to the City’s Investment Policy. • Up to thirty percent (30%) of the City’s portfolio may be invested in United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this paragraph shall be rated in a rating category of “AA” or its equivalent or better by a nationally recognized statistical rating organization. No more than 10% of the City’s portfolio shall be invested in obligati ons of any one bank. G. Funds with Fiscal Agents The City had $1,404,765 in cash and investments as of June 30, 2021, held by fiscal agents pledged for the payment or security of the 2010 Lease Revenue Bonds. There was an additional $873,535 held by fiscal agents for the 2004 Redevelopment Agency Tax Allocation Bonds in the Successor Agency to the Community Redevelopment Agenc y of Atascadero Private Purpose Trust Fund. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds, certificates, or leases, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of investments its fiscal agents may make. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 108 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 48 NOTE 4 – ADVANCES RECEIVABLE – SUCCESSOR AGENCY Receivable Fund Payable Fund Amount 2010 Bond Debt Service Fund Successor Agency General Fund 14,370,000$ Total 14,370,000$ Advances receivable of $14,370,000 consists of a reimbursement agreement with the City for bond debt service. In September of 2010, the City issued bonds on behalf of the former Redevelopment Agency and entered into a reimbursement agreement at that time whereby the City advanced the former Agency the proceeds of the bond and the former Agency was required to make annual payments to the City in the amount of the debt service on the b onds. With the dissolution of redevelopment, this is now a debt of the Successor Agency and the Successor A gency will continue to make the required payments. See Note 15D – Successor Agency Trust for Assets of Former Redevelopment Agency, Bond Reimbursement Agreement Payable, for additional information. This arrangement meets the criteria of ABX1 26, Section 34171(d)(G)(2): • Written agreement entered into: o At the time of issuance, but no later than December 31, 2010, of indebtedness obligations o Solely for the purpose of securing or repaying those indebtedness obligations • Section 34171(e) defines “indebtedness obligation”: bonds, notes, certificates of participation, or other evidence of indebtedness, issued or deliver ed by the redevelopment agency, or by a joint exercise of powers authority created by the redevelopment agency, to third -party investors or bondholders to finance or refinance redevelopment projects undertaken by the redevelopment agency in compliance with the Community Redevelopment Law. NOTE 5 – NOTES RECEIVABLE Notes Receivable in the amount of $4,557,430 is outstanding in the In Lieu Low/Moderate Income Housing Fund. Developments meeting certain criteria must either pay an In-Lieu fee into the fund or provide “affordably” priced homes for sale to income qualified buyers. These homes are sold by developers at prices below fair market value and the City records notes receivable against the titles in the amounts equal to the difference between the reduced sales prices and the fair market values. The loans are either paid back on a pro-rata share of equity at the time the homes sell, or are forgiven after a period of 30 years of ownership by the same homeowner. The Notes Receivable amount includes loans for 22 homes in the Very Low Income category and 1 0 homes in the Low/Moderate Income category. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 109 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 49 NOTE 6 – CAPITAL ASSETS A. Capital Assets Additions and Retirements Capital assets activity in the Governmental Activities for the fiscal year ended June 30, 2021, was as follows: Balance June 30, 2020 Additions Deletions Transfers Between Assets Balance June 30, 2021 Governmental Activities Non-Depreciable Capital Assets Land 41,586,578$ 1,519$ -$ -$ 41,588,097$ Construction in progress 8,213,095 5,075,512 - (7,738,884) 5,549,723 Total non-depreciable capital assets 49,799,673 5,077,031 - (7,738,884) 47,137,820 Depreciable Capital Assets Vehicles and equipment 12,620,842 452,193 (58,628) 112,724 13,127,131 Structures and improvements 54,291,867 - - 837,257 55,129,124 Infrastructure 69,668,498 - (2,447,896) 6,788,903 74,009,505 Total depreciable capital assets 136,581,207 452,193 (2,506,524) 7,738,884 142,265,760 Less Accumulated Depreciation (50,461,053) (3,691,990) 1,910,450 - (52,242,593) Net depreciable capital assets 86,120,154 (3,239,797) (596,074) 7,738,884 90,023,167 Net governmental capital assets 135,919,827$ 1,837,234$ (596,074)$ -$ 137,160,987$ ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 110 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 50 NOTE 6 – CAPITAL ASSETS (continued) A. Capital Assets Additions and Retirements (continued) Capital assets activity in the Business-Type Activities for the fiscal year ended June 30, 2021, was as follows: Balance June 30, 2020 Additions Deletions Balance June 30, 2021 Business-Type Activities Non-Depreciable Capital Assets Land 547,738$ -$ -$ 547,738$ Construction in progress 368,097 1,423,398 - 1,791,495 Total non-depreciable capital assets 915,835 1,423,398 - 2,339,233 Depreciable Capital Assets Vehicles and equipment 1,319,645 36,781 (124,177) 1,232,249 Structures and improvements 29,405,855 - - 29,405,855 Total depreciable capital assets 30,725,500 36,781 (124,177) 30,638,104 Less Accumulated Depreciation (17,793,255) (815,040) 124,177 (18,484,118) Net depreciable capital assets 12,932,245 (778,259) - 12,153,986 Net business-type capital assets 13,848,080$ 645,139$ -$ 14,493,219$ ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 111 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 51 NOTE 6 – CAPITAL ASSETS (continued) B. Depreciation Allocations Depreciation expense was charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program were as follows: Governmental Activities: General government 347,956$ Public safety 693,646 Community development 226,059 Community, recreation & zoo services 369,082 Parks & open space 262,719 Public works 1,792,528 Total Depreciation Expense- Governmental Activities 3,691,990$ Sewer 698,429$ Transit 116,611 Total Depreciation Expense- Business-Type Activities 815,040$ Business-Type Activities: ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 112 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 52 NOTE 7 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS A. Interfund Receivables and Payables Due to/due from other funds consist of short-term interfund loans made for the purposes of cash flows. They are expected to be repaid by the borrowing fund within one year. The composition of due to/due from balances at June 30, 2021, is as follows: Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Funds 206,779$ General Fund Transit Fund 7,841 Nonmajor Governmental Funds Fire Aerial Vehicle Impact Fees Fund 739,841 Total 954,461$ B. Interfund Transfers Interfund transfers were made as follows: Actual Amount Description $ 250,000 Transfer from the General Fund to the Technology Fund for equipment replacement for Chamber technology upgrades 645,010 Transfer from the General Fund to the Vehicle and Equipment Replacement Fund for equipment replacement 47,000 Transfer from the General Fund to the Vehicle and Equipment Replacement Fund for backhoe tractor 158,120 Transfer from the General Fund to the Vehicle and Equipment Replacement Fund for reserve fund deficit 27,400 Transfer from the General Fund to the Technology Fund for equipment replacement for laserfiche licenses 698,950 Transfer from the Community Facilities District Fund to the General Fund for fire, police and park services 251,817 Transfer from the General Fund to the Gas Tax Fund for the cost of Streets Department operations 98,588 Transfer from the Gas Tax Fund to the Local Transportation Fund for the El Camino Real South Rehabilitation Project 1,850 Transfer from the General Fund to the Las Lomas Landscape & Lighting Fund for open space maintenance 1,400 Transfer from the General Fund to the De Anza Landscape & Lighting Fund for open space maintenance 2,180,135$ Interfund Transfers June 30, 2021 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 113 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 53 NOTE 8 – LONG-TERM LIABILITIES A. Compensated Absences City employees accumulate earned but unused vacation and certain other leave pay benefits which can be converted to cash at termination of employment. In the statement of activities, the expenditure is allocated to each function based on usage. The vested benefits payable in accordance with various collective bargaining agreements at June 30, 2021, total $1,511,206 for governmental activities and $35,285 for business-type activities. B. 2010 Lease Revenue Bonds On September 1, 2010, the City of Atascadero issued $16,010,000 in Lease Revenue Bonds for the former Community Redevelopment Agency of Atascadero. The bonds were issued by the City in order to achieve an overall lower interest rate on the bonds . The bond proceeds were transferred to the former Redevelopment Agency for use on the Historic City Hall Project and other redevelopment blight elimination projects. These bonds mature between fiscal years 2015 and 2041, at interest rates ranging from 3.0% to 5.0%. The Successor Agency makes payments, from tax increment revenues, to the City in amounts equal to the annual debt service payments on the bonds. The bonds will then be repaid by the City using these revenues. The following is a summary of principal and interest payments to be made in future fiscal years: Fiscal Year Ending June 30,Principal Interest 2022 $ 270,000 $ 702,012 2023 275,000 689,737 2024 295,000 676,963 2025 305,000 664,581 2026 315,000 651,800 2027-2031 1,830,000 3,007,750 2032-2036 3,180,000 2,469,500 2037-2041 7,900,000 1,026,250 $ 14,370,000 $ 9,888,593 2010 Lease Revenue Bonds ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 114 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 54 NOTE 8 – LONG-TERM LIABILITIES (continued) C. Changes in Long-Term Liabilities Long-term liability activity for the fiscal year ended June 30, 2021, was as follows: Balance June 30, 2020 Additions Payments Balance June 30, 2021 Due Within One Year Governmental Activities: Bonds Payable: 14,630,000$ -$ (260,000)$ 14,370,000$ 270,000$ Compensated Absences 1,715,273 990,690 (1,194,757) 1,511,206 - Premium on 2010 Lease Revenue Bonds 60,440 - (2,982) 57,458 2,982 139,672 5,867 (193,447) (47,908) - Net Pension Liability 27,652,620 5,387,716 (3,263,475) 29,776,861 - Other Post Employment Benefits Liability 215,480 14,543 (6,726) 223,297 - Total Governmental Activities 44,413,485$ 6,398,816$ (4,921,387)$ $ 45,890,914 272,982$ Business-type Activities: Compensated Absences 32,290$ 39,139$ (36,194)$ 35,235$ -$ Net Pension Liability 784,689 167,572 (103,061) 849,200 - Total Business-type Activity $ 816,979 206,711$ $ (139,255) $ 884,435 -$ 2010 Lease Revenue Bonds Workers' Compensation estimated claims liability in excess of deposits NOTE 9 – EMPLOYEE RETIREMENT BENEFITS A. Public Employees’ Retirement System Summary of Significant Accounting Policies-Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions and pension expense, information about the fiduciary net position of the City of Atascadero’s California Public Employees’ Retirement System (CalPERS) Plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 115 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 55 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) A. Public Employees’ Retirement System (continued) Plan Descriptions All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City of Atascadero sponsors six rate plans (three miscellaneous and three safety.) Benefit provisions under the Plan are established by State statu te and City of Atascadero resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website at www.calpers.ca.gov. 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 services, equal to a fixed percentage of their highest annual salary formula as determined by the benefit program they participate in. 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 spec ified by the Public Employees’ Retirement Law. The rate plan provisions and benefits in effect at June 30, 2021, are summarized as follows: Tier 1 Tier 2 Tier 3 Hire date Prior to July 1, 2012 On or after July 1, 2012 On or after January 1, 2013 Benefit formula 2.5% @ 55 2.0% @ 55 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-63 52-67 Monthly benefits, as a % of eligible compensation 2.0% to 2.5%1.426% to 2.418%1.0% to 2.5% Required employee contribution rates 8.00%7.00%6.50% Required employer contribution rates 13.15%11.20%7.87% Miscellaneous Plan ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 116 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 56 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) A. Public Employees’ Retirement System (continued) Benefits Provided (continued) Tier 1 Tier 2 Tier 3 Hire date Prior to July 1, 2012 On or after July 1, 2012 On or after January 1, 2013 Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50-55 50-57 Monthly benefits, as a % of eligible compensation 3.0%2.4% to 3.0%2.0% to 2.7% Required employee contribution rates 9.00%9.00%12.00% Required employer contribution rates 23.67%20.59%13.04% Safety Plan Contributions- Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all pub lic 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 the Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of the employees. The City’s contributions to the Plan for the fiscal year ended June 30, 2021, were $3,742,162. Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund. The dollar amount was paid at the beginning of the fiscal year. The City of Atascadero’s required contribution for the unfunded liability and side f und was $2,279,885 in fiscal year 2021. B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2021, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $30,626,061. The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the 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 City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to other projected contributions of all participating employers, actuarially determined. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 117 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 57 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) The City’s proportionate share of the net pension liability for the Plan as of measurement dates June 30, 20 20, and 2019, was as follows: June 30, 2021 June 30, 2020 Measurement Date 6/30/2020 6/30/2019 Percentage of Plan (PERF C) Net Pension Liability 0.28148%0.27752%0.00396% Change: Increase/ (Decrease) Percentage share of Plan Proportionate Percentage Share of Net Pension Liability For the fiscal year ended June 30, 2021, the City recognized pension expense of $5,204,109. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 2,037,231$ -$ Changes of assumptions - (151,363) Net differences between projected and actual earnings on plan investments 769,123 - Change in employer's proportion 390,945 (40,444) Differences between the employer's contributions and the employer's proportionate share of contributions - (484,629) Pension contributions subsequent to measurement date 3,742,162 - Total 6,939,461$ (676,436)$ All Plans ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 118 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 58 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) $3,742,162 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended June 30, Deferred Outflows / (Inflows) of Resources 2022 452,375$ 2023 974,591 2024 716,787 2025 377,110 Actuarial Assumptions – For the measurement period ended June 30, 2020, the total pension liabilities were determined by rolling forward the June 30, 2019, total pension liability. The June 30, 2020, total pension liabilities were based on the following actuarial methods and assumptions: Valuation Date Measurement Date Actuarial Assumptions: Discount Rate Inflation Salary Increases Post Retirement Benefit Increase Mortality Plan June 30, 2019 June 30, 2020 7.15% 2.50% Varies by Entry Age and Service Contract COLA up to 2.5% until Purchasing Power Protection Allowance Floor on Purchasing Power Applies Derived using CalPERS' Membership Data for all Funds. The mortality rates include 15 years of projected on-going mortality improvements using 90% of Scale MP 2016 published by the Society of Actuaries. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 119 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 59 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) Actuarial Assumptions (continued) The mortality table used was developed based on CalPERS’ specific data. This table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more detail 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. Discount Rate The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members 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 projec ted to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical 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 equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 120 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 60 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) The following table reflects long-term expected real rate of return by asset class. The rates of return were calculated using the capital market assumptions applied to determine the discount rate and asset allocation. Asset Class Assumed Asset Allocation 1 Real Return Years 1-10 2 Real Return Years 11+ 3 Global equity 50.0%4.80%5.98% Fixed income 28.0%1.00%2.62% Inflation assets 0.0%0.77%1.81% Private equity 8.0%6.30%7.23% Real assets 13.0%3.75%4.93% Liquidity 1.0%0.00%-0.92% Total 100.0% (1) In the CalPERS ACFR, 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. (2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period. Sensitivity of Proportionate Share of Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: 6.15% (1% Decrease) 7.15% (Current Rate) 8.15% (1% Increase) Measurement Date Fiscal Year End Net Pension Liability 45,310,054$ 30,626,061$ 18,539,720$ Discount Rate 6/30/2020 6/30/2021 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 121 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 61 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) Pension Plan Fiduciary Net Position Detailed information about the Plan’s fiduciary net positions is available in separately issued CalPERS financial reports. C. Payable to the Pension Plan The City paid 100% of the required actuarially determined contributions for the fiscal year ending June 30, 2021, and therefore recorded no payables to the pension plan for the same period. D. Defined Contribution Plan The City offers a defined contribution plan, Nationwide Retirement Solutions, for those employees that are excluded from CalPERS membership due to part- time or elected status. The plan is approved as a FICA substitute. Members contribute 5% and the City contributes 2.5%. Total employee contributions for the year were $7,360, and total contributions from the City were $3,680. Nationwide Retirement Solutions is the public employee plan subsidiary of Nationwide Financial Services, Inc. (NYSE: NFS). NOTE 10 – OTHER POST EMPLOYMENT BENEFITS Plan Description In addition to the CalPERS pension benefits described above, the City provides post -retirement health benefits for Executive Management (City Council, City Manager, Deputy City Managers, and Department Heads). The City agreed to reimburse the retiree for retiree and/or retiree’s dependent health (medical/dental/vision) insurance premiums, disability insurance, long-term health care or life insurance premiums up to a maximum of $200 per month. The benefit is available upon retirement from CalPERS or other similar retirement program after age 50, and the employee must hav e served for eight years with the City. The benefit extends between the date of retirement and age 65. Currently, there are five people that received benefits in fiscal year 2020/2021, and thirteen other people that may become eligible for benefits under this program. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. Contributions The City accounts for this benefit on a pay-as-you-go basis. Post employment expenditures are made from the General Fund, which is maintained on the modified accrual basis of accounting. No funds are set aside to pay for benefits and administrat ive costs. These expenditures are paid as they come due. In fiscal year ended June 30, 2021, the City’s total contributions were $6,726. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 122 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 62 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (continued) Employees Covered As of June 30, 2021, the following current and former employees were covered by the benefit under the plan. Active members 13 Inactive members 3 Beneficiaries 5 Total 21 Total OPEB Liability The City has elected to calculate the OPEB liability and related information using the alternative measurement method permitted by GASB Statement 75 for employers in plans with fewer than one hundred total plan members. The City’s OPEB liability was measured as of June 30, 2021, and the total OPEB used to calculate the OPEB liability was from the City’s valuation as of June 30, 2021. Changes in the OPEB Liability Total OPEB Liability Balance at June 30, 2020 (valuation date June 30, 2020)215,480$ Changes recognized for the measurement period: Service cost 8,079 Interest 6,464 Benefit payments (6,726) Net changes 7,817 Balance at June 30, 2021 (valuation date June 30, 2021)223,297$ ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 123 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 63 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (continued) Sensitivity of the OPEB Liability to Changes in the Discount Rate The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (2.00%) or 1-percentage point higher (4.00%) than the current discount rate. 1% Decrease Current 1% Increase 2.00%3.00%4.00% OPEB Liability 224,376$ 223,297$ 222,368$ Discount Rate Sensitivity of the OPEB Liability to Changes in the Healthcare Cost Trend Rate The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using a healthca re cost trend rate that is 1- percentage point lower (2.00%) or 1-percentage point higher (4.00%) than the current Healthcare Trend Rate of 3.0%. 1% Decrease Current 1% Increase 2.00%3.00%4.00% OPEB Liability 222,368$ 223,297$ 224,376$ Healthcare Trend Rate 3% Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the emp loyer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value assets, consistent with the long-term perspective of the calculations. The following simplifying assumptions were made: Retirement age for active employees – Based on the historical average retirement age for the covered group, public safety acti ve plan members were assumed to retire at age 50, or at the first subsequent year in which the member would qualify for benefits and other ac tive plan members were assumed to retire at age 55, or at the first subsequent year in which the member would qualify for benefits. Mortality – All active and inactive plan members were expected to live through age 65 (the age that benefits terminate). Turnover – All active members were expected to remain employed until the assumed retirement/age. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 124 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 64 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (continued) Actuarial Methods and Assumptions (continued) Discount Rate – Based on the historical and expected returns of the City’s short-term investment portfolio, a discount rate of 3.0 percent was used. In addition, a simplified version of the projected unit credit and level cost method was used. The remaining amortization p eriod at June 30, 2021, was twenty-three years. NOTE 11 – REVENUE LIMITATIONS IMPOSED BY CALIFORNIA PROPOSITION 218 Proposition 218, which was approved by voters in November 1996, regulates the City’s ability to impose, increase and extend taxes, assessments , and fees. Any new, increase, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter appro val before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future years by the voters. NOTE 12 – RISK MANAGEMENT A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Atascadero is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers’ agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage . The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. B. Primary Self-Insurance Programs of the Authority Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. Primary Liability Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated rel ative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of th e pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incu rred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 125 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 65 NOTE 12 – RISK MANAGEMENT (continued) B. Primary Self-Insurance Programs of the Authority (continued) Primary Liability Program (continued) The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losse s also have $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/. Primary Workers’ Compensation Program Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2020-21 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. C. Purchased Insurance Pollution Legal Liability Insurance The City of Atascadero participates in the pollution legal liability insurance program which is available thr ough the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Atascadero. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. Property Insurance The City of Atascadero participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Atascadero property is currently insu red according to a schedule of covered property submitted by the City of Atascadero to the Authority. City of Atascadero property currently has all-risk property insurance protection in the amount of $88,590,546. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. Crime Insurance The City of Atascadero purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 126 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 66 NOTE 12 – RISK MANAGEMENT (continued) C. Purchased Insurance (continued) Special Event Tenant User Liability Insurance The City of Atascadero further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Atascadero according to a schedule. The City of Atascadero then pays for the insurance. The insurance is facilitated by the Authority. D. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceed ed pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in fiscal year 2020-21. E. Unemployment The City is fully self-insured for unemployment claims. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 127 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 67 NOTE 12 – RISK MANAGEMENT (continued) F. Self Insurance The City retains the risk for losses incurred prior to joining the Authority. Several member agencies of the now dissolved Central Coast Cities Self -Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance f or claims prior to joining the Authority. Losses are debited and investment income is credited to specific member accounts. The City has not incurred an y losses in excess of insurance coverage. Workers' Compensation Interest earnings and other income 72$ Claims expense 5,867 Estimated liability for reported claims and settlement expenses 112,717 Assets on deposit 160,625 Assets in excess of (less than) liabilities 47,908$ Workers' Compensation Deposits (unpaid claims liability) June 30, 2019 (132,302)$ Claim payments and related expenditures (59,402) Decrease in estimated claims liability June 30, 2020 51,627 Deposits and interest earnings 405 Deposits (unpaid claims liability) June 30, 2020 (139,672) Claim payments and related expenditures (5,867) Decrease in estimated claims liability June 30, 2021 36,375 Deposits and interest earnings 157,072 Deposits (unpaid claims liability) June 30, 2021 47,908$ Self-insurance activity as of and for the year ended June 30, 2021, is summarized as follows: Changes in the balances of claim liabilities during the past two fiscal years are as follows: ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 128 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 68 NOTE 13 – CONTINGENCIES AND COMMITMENTS The City had received state and federal funds for specific purposes that are subject to review and audit by the grantor agenc ies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material. According to the City Attorney, there are two potentially significant issues pending. Andrew Sunderland V. City of Atascadero, San Luis Obispo Superior Court Case No. 21 CVP-0074 On March 24, 2021, Andrew J. Sutherland, Trustee of the Andrew J. Sutherland Trust dated April 26, 2016 (“Sutherland”) filed a Petition for Writ of Mandate and Complaint for Procedural and Substantive Taking of Property (“Petition”) which includes the following allegations. Sunderland owns property located at 6020 Conejo Road in the City of Atascadero and the property has a billboard which was erected in 1953 pursuant to a permit issued by the State of California (“Original Billboard”). On January 22, 2017, a large windstorm blew down the Original Billboard and Outfront Media erected a new billboard by March 7, 2017 (“Outfront Billboard”). Outfront removed its billboard following a demand for removal by the City. In August 2019, Sunderland constructed a new billboard (“Reconstructed Original Billboard”). The Petition alleges that the Original Billboard became vested as a lawful use by virtue of the 1953 State permit and Business and Professions Code Section 5412. The Petition prays for a writ of mandate directing the City to accept the application from Sunderland to permit the Reconstructed Billboard and an award of damages of no less than $600,000 for the taking of the billboard. The City has filed an Answer to the Petition denying the material allegations of the Petition. The City’s Municipal Code does not permit off site signs, including billboards, and the City has not issued a permit for either the Outfront Billboard or the so called Reconstructed Original Billboard. In addition to the pleadings described above, there has been writte n discovery conducted in this case. On December 9, 2021, there was a mediation of the case but there was no resolution to the issue. There is a Case Management Conference set for March 28, 2022. At that time, the Court may set this case for trial. An evaluation of the likelihood of an unfavorable outcome and the amount or range of potential loss is premature at this time due to a number of factors including the scope of the pleadings as may be determined by pre-trial motions and the completion of additional written discovery and depositions of lay and expert witnesses. Scott Newton V. City of Atascadero, San Luis Obispo Superior Court Case No. 21 CVP -0168 On June 25, 2021, Scott Newton (“Newton”) filed a Petition for Writ of Mandate; Complaint for Damages (“Petition”) against the City of Atascadero and City Council Members Heather Newsom and Susan Funk. The Petition challenges the City’s action in not approving a proposed self-storage project and the City’s not processing a proposed General Plan Amendment for housing. The Petition also alleges violation of Substantive Due Process and Equal Protection (42 USC 1983). The Petition prays for a preliminary injury, writ of mandate and for “monetary damages according to proof”. The City sent a letter to the attorney for Scott Newton citing a number of defects in the Petition and then Newton agreed to file a First Amended Petition and Complaint which was filed on or about September 20, 2021 (“FAC”). The FAC only names the City as a defendant. The FAC include the sam e basis allegations and the same Prayer. The City sent another letter to the attorney for Newton stating that the FAC did not cure the defects. However, Newton did not file another amended Petition so the City has filed a Demurrer and Motion to Strike as r esponsive pleadings to the FAC which is set for hearing on January 18, 2022, in San Luis Obispo Superior Court. In addition to the pleadings described above, there has been discovery conducted to date. An evaluation of the likelihood of an unfavorable outcome and the amount or range of potential loss is premature at this time due to a number of factors including the scope of the pleadings as may be determined by pre- trial motions including the City’s Demurrer and Motion to Strike and the completion of written discovery and depositions of lay and expert witnesses. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 129 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 69 NOTE 13 – CONTINGENCIES AND COMMITMENTS (continued) Construction and other significant commitments as of June 30, 2021, including encumbrances outstanding at fiscal year-end, are as follows: 100 General Fund 3,073,029$ 201 Community Facilities District Fund 2,206 202 Apple Valley Street & Storm Drain Assessment District Fund 1,625 203 Apple Valley Landscape & Lighting Assessment District Fund 2,103 204 Las Lomas Street & Storm Drain Assessment District Fund 1,625 205 Las Lomas Landscape & Lighting Assessment District Fund 2,103 206 De Anza Street & Storm Drain Assessment District Fund 1,625 207 De Anza Landscape & Lighting Assessment District Fund 2,103 240 CDBG 52,118 265 Local Transportation Fund 1,459,446 281 Circulation System Fees Fund 313,446 287 Parkland Facilities Fees Fund 176,643 527 Wastewater Fund 4,121,058 680 Vehicle and Equipment Replacement Fund 7,813 690 Technology Fund 61,725 Total 9,278,668$ Capital Commitments Fiscal Year 2020/2021 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 130 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 70 NOTE 14 – NET POSITION GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified as either net investment in capital assets, restricted, or unrestricted. Net position that is net investment in capital assets consist of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt. Restricted net position is the portion of net position that has external constraints placed on it by creditors, granto rs, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislatio n. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position. Net Position Net Position is the excess of all the City’s assets over all its liabilities, regardless o f fund. Net Position is divided into three captions under GASB Statement No. 34. These captions apply only to Net Position, which is determined only at the government-wide level, and are described below: Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets. Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include fees received for use on economic development, capital projects, debt service requirements, and redevelopment funds restricted to low and moderate income purposes. Restricted Net Position includes $36,864,632 restricted by enabling legislation. Unrestricted describes the portion of Net Position which is not restricted as to use. NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1x 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Atascadero , which had previously reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that, upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “s uccessor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution Number 2012 -002. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 131 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 71 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter i nto new projects, obligations or commitments. Subject to the control of the oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and al l assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between r edevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public b ody designated as the successor agency by the Bill. Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the C ity are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011), all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012), from governmental funds of the City to fiduciary funds , was reported in the governmental funds as an extraordinary loss in the governmental fund financial statements in fiscal year 2011-2012. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private purpose trust fund as an extraordinary gain in the fiscal year 2011-2012. The Successor Agency received a Finding of Completion (FOC) from the State Department of Finance on March 8, 2013. In order to be eligible for the FOC, the Successor Agency had to meet the following requirements: • pay the housing fund balance as determined by Due Diligence Review; • pay the non-housing fund balance as determined by Due Diligence Review; and • pay the balance of any outstanding pass-through obligations and residual payments. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 132 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 72 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) A. Notes Receivable The Housing Successor Agency is holding $200,000 in Notes Receivable as part of the Downtown Stimulus Program. The former Redevelopment Agency used the Downtown Stimulus Program as a tool to encourage investors to provide affordable housing in the downtown area. Neither the principal nor interest shall be payable under the Note for the term of 55 years; or until such time as the Program Participant sells or otherwise tr ansfers the site. The Notes will be forgiven in full after the period of 55 years. B. Capital Assets The remainder of the capital assets of the Successor Agency were disposed of during fiscal year 2017 -2018. No capital asset activity was recorded in the Private Purpose Trust Funds for the fiscal year ended June 30, 2021. C. Loans Payable Written-Off The City General Fund loaned three separate advances to the former Redevelopment Agency. The total of these three loans, $1,375,175, was a liability of the Successor Agency through fiscal year 2019-2020. AB 1484 sets forth the criteria for repayment of these loans: • California Department of Finance must issue the Successor Agency a Finding of Completion • Oversight Board must find that the loans were for legitimate redevelopment purposes • Repayment is subject to certain restrictions, including a reduction of the interest rate to the LAIF rate, restrictions on the timing and amount of annual repayments, and a requirement that 20% of the repayment amount must be deposited into a restricted housing set-aside fund • Loan repayments shall not be made prior to the 2013-14 fiscal year. On September 22, 2015, Governor Brown signed Senate Bill 107, a budget bill including, among other things, a modification to Hea lth and Safety Code Section 34191.4(b), concerning the manner in which interest on the loans is to be calculated and limitations on annual loan payment amounts: • All outstanding interest as of the date of dissolution is to be recalculated from the date of origination of the loan as appr oved by the Redevelopment Agency on a quarterly basis, at a simple interest rate of 3 percent. • The amount of property tax available to fund loan repayments is one-half of the difference between the Redevelopment Property Tax Trust Fund (RPTTF) funds available in the current fiscal year and the RPTTF payments to the affected taxing entities in fiscal year 2012-13. Loan repayment was requested on the Required Obligation Payment Schedule 2019-20. The State Department of Finance denied the request to begin repayment of the loans. These loans were written-off as uncollectable during the current fiscal year, 2020-2021. D. Bond Reimbursement Agreement Payable In September of 2010, the City issued $16,010,000 in bonds on behalf of the Redevelopment Agency in order for the Agency to a chieve an overall lower debt service cost. At the time of the bond issuance, a reimbursement agreement was entered into whereby the City advanced the Agency the proceeds of the bond and the Agency is required to make annual payments to the City in the amount of the debt service on the bonds. Annu al principal payments on the advance are required between fiscal years 201 5 and 2041, at interest rates ranging from 3.0% to 5.0%. See Note 8B – Long Term Debt, 2010 Lease Revenue Bonds, for additional information. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 133 of 215 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2021 73 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) E. 2004 Redevelopment Agency Tax Allocation Bonds The former Atascadero Community Redevelopment Agency (Agency) issued $12,490,000 in Tax Allocation bonds for improvements to the downtow n core. These bonds mature between fiscal years 2011 and 2035, at interest rates ranging from 3.00% to 5.00%. Since the Agency was dissolved effective February 1, 2012, the bonds are now a liability of the Successor Agency. The liability is now reflected on the private purpose trust financial statements of the Successor Agency and is no longer found on the financial statements of the City and its component unit. The bonds will be repaid with the Successor Agency’s Tax Allocation Revenues. The following is a summary of principal and interest payments to be made in future fiscal years: Fiscal Year Ending June 30,Principal Interest 2022 $ 435,000 $ 403,930 2023 455,000 383,677 2024 475,000 361,634 2025 500,000 337,869 2026 525,000 312,884 2027-2031 3,030,000 1,143,688 2032-2035 3,015,000 310,625 $ 8,435,000 $ 3,254,307 2004 Redevelopment Agency Tax Allocation Bonds NOTE 16 – SUBSEQUENT EVENTS In early 2021, an outbreak of the novel strain of coronavirus (COVID-19) emerged globally. As a result, there have been mandates from federal, state and local authorities resulting in an overall decline in economic activity. The ultimate impact of COVID-19 on the City’s financial performance is not reasonably estimable at this time. NOTE 17 – EXTRAORDINARY ITEMS The City General Fund loaned three separate advances to the former Redevelopment Agency. The total of these three loans was $1,375,175. Through the Dissolution of Redevelopment, new law became effective that challenged the repayment of these loans by the Redevelopment Agency to the City. The City worked diligently to satisfy the requirements for repayment, but ultimately was unsuccessful. These loans were written -off as uncollectable during the current fiscal year, 2020-2021, and are listed as an Extraordinary Loss on the financial statements. ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 134 of 215 REQUIRED SUPPLEMENTARY INFORMATION ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 135 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - SUMMARY BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Secured and unsecured property taxes 10,987,520$ 10,987,520$ 10,792,509$ (195,011)$ Taxes based on sales and use 6,610,020 7,895,020 8,976,357 1,081,337 Franchise tax 1,130,330 1,130,330 1,232,615 102,285 Other taxes 1,961,090 1,991,340 1,819,618 (171,722) Licenses and permits 640,460 640,460 754,420 113,960 Intergovernmental revenues: Motor vehicle in-lieu and related payments 15,400 15,400 22,045 6,645 Grants 153,330 224,210 155,648 (68,562) Other governmental revenues 155,950 403,360 535,247 131,887 Charges for services: Public safety 443,670 1,118,280 1,676,188 557,908 Development 635,170 635,170 689,401 54,231 Recreation, parks, pavilion, and zoo 866,370 895,400 790,255 (105,145) Other services 56,310 56,310 65,619 9,309 Fines and forfeitures 80,330 80,330 49,312 (31,018) Use of money and property 84,690 84,690 106,561 21,871 Other revenues 1,268,040 1,273,110 1,384,715 111,605 Total revenues 25,088,680 27,430,930 29,050,510 1,619,580 Expenditures: Employee services 17,267,100 17,720,540 16,722,868 997,672 Operating supplies and services 5,909,950 6,120,320 5,592,895 527,425 Special purchases, projects, and community funding 520,320 1,506,020 975,754 530,266 Capital outlay 4,679,290 5,802,050 3,747,912 2,054,138 Total expenditures 28,376,660 31,148,930 27,039,429 4,109,501 Excess of revenues over (under) expenditures (3,287,980) (3,718,000) 2,011,081 5,729,081 Budget Variance with Final Budget Positive (Negative) 74 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 136 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - SUMMARY (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Other Financing Sources (Uses): Transfers in 698,950$ 698,950$ 698,950$ -$ Transfers out (203,490) (255,070) (255,067) 3 Total other financing sources and uses 495,460 443,880 443,883 3 (2,792,520) (3,274,120) 2,454,964 5,729,084 - - (1,375,175) (1,375,175) (2,792,520)$ (3,274,120)$ 1,079,789 4,353,909$ Fund balance - June 30, 2020 16,256,364 Fund balance - June 30, 2021 17,336,153$ Extraordinary gains/(losses)- Write-off of Redevelopment Loans Net change in fund balance Budget Variance with Final Budget Positive (Negative) Net changes in fund balance prior to extraordinary item 75 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 137 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Taxes: Property taxes: Secured property tax 6,939,730$ 6,939,730$ 6,693,256$ (246,474)$ Property tax in lieu of VLF 3,192,070 3,192,070 3,163,757 (28,313) Unsecured property taxes 162,350 162,350 275,023 112,673 Supplemental property taxes 180,220 180,220 142,452 (37,768) 518,400 518,400 527,383 8,983 Prior year secured and unsecured (5,000) (5,000) (9,053) (4,053) Property tax penalties and interest (250) (250) (309) (59) Taxes based on sales: Sales and use taxes 4,226,020 4,226,020 4,728,862 502,842 Measure D-20 sales tax - 1,285,000 1,415,443 130,443 Measure F-14 sales tax 2,384,000 2,384,000 2,832,052 448,052 Transient occupancy tax 1,633,840 1,633,840 1,385,896 (247,944) Franchise taxes: Cable television franchise fees 245,540 245,540 248,690 3,150 Electricity franchise fees 266,680 266,680 289,817 23,137 Garbage disposal franchise fees 453,820 453,820 521,870 68,050 Landfill franchise fees 14,400 14,400 18,261 3,861 Recycling franchise fees 20,250 20,250 9,804 (10,446) Gas franchise fees 73,150 73,150 88,373 15,223 Wastewater franchise fees 56,490 56,490 55,800 (690) Business licenses 175,390 175,390 170,544 (4,846) Property transfer tax 151,860 151,860 214,195 62,335 Cannabis business tax - 30,250 48,983 18,733 Total Taxes 20,688,960 22,004,210 22,821,099 816,889 Licenses and Permits: Construction permits 545,870 545,870 638,264 92,394 Grading and drainage permits 40,340 40,340 55,195 14,855 Encroachment permits 43,020 43,020 52,958 9,938 Tree application fees 8,000 8,000 7,318 (682) Planning Inspections 3,230 3,230 685 (2,545) Total Licenses and Permits 640,460 640,460 754,420 113,960 Budget Variance with Final Budget Positive (Negative) Redevelopment Agency Dissolution- residual distribution 76 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 138 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues (continued): Intergovernmental Revenues: Motor vehicle in-lieu (VLF)15,400$ 15,400$ 22,045$ 6,645$ Federal CARES Act Funds- COVID-19 - 247,410 247,412 2 Homeowners' tax relief 45,950 45,950 44,678 (1,272) State mandated costs 5,000 5,000 13,051 8,051 P.O.S.T. reimbursement 25,000 25,000 4,706 (20,294) Other County reimbursements - - 1,717 1,717 County COVID-19 Vaccine Assistance - - 52,692 52,692 School Resources Officer 80,000 80,000 80,000 - - - 90,991 90,991 Grants: SAFER Federal Fire Grant 48,390 48,390 44,696 (3,694) Assistance to Fire Fighters Grant - 10,880 9,785 (1,095) Fire Safe Council - 2021 Fuel Management - 12,130 30,116 17,986 Office of Traffic Safety-2021 Traffic Police Grant - 10,770 10,763 (7) Office of Traffic Safety-2021 DUI Police Grant - 8,230 8,222 (8) Cal OES 2017 Storms Grants - - (53) (53) Cal OES Nuclear Power Preparation Grant - 5,500 5,500 - - 1,850 1,842 (8) HCD- Housing Element & Inclusionary Policy 104,940 104,940 23,268 (81,672) HCD- LEAP Mixed Use Develop Standards - 10,060 10,058 (2) HCD- REAP Jurisdictional -Zoning Grant - 960 959 (1) HCD- REAP Regional ADU's - 5,620 5,616 (4) Cal Fire- Joint Apprenticeship Committee - 4,880 4,876 (4) Total Intergovernmental Revenues 324,680 642,970 712,940 69,970 Budget Variance with Final Budget Positive (Negative) Settlement agreement- SB 1090 Essential Services Mitigation Funds (PG&E DCPP) Board of State and Community Corrections- Police Grant 77 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 139 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues (continued): Charges for Services: Public safety: First response charges 116,680$ 116,680$ 126,660$ 9,980$ Weed abatement services 37,780 37,780 63,026 25,246 Mutual Aid 250,000 924,610 1,442,644 518,034 Police/Fire false alarms 5,000 5,000 2,586 (2,414) Castlerock Communication Site Lease 3,430 3,430 15,644 12,214 Fingerprints 8,120 8,120 805 (7,315) Vehicle release fees 18,270 18,270 17,287 (983) Other public safety services 4,390 4,390 7,536 3,146 Development: Zoning fees 43,650 43,650 60,940 17,290 Subdivision fees- Planning 32,500 32,500 43,224 10,724 Subdivision fees- Public Works 13,090 13,090 4,521 (8,569) General and specific plans - - 16,382 16,382 Appeals 1,230 1,230 2,905 1,675 Assessment district formations/annexations - - 21,339 21,339 Planning review 41,960 41,960 46,315 4,355 Building plan check fees 311,920 311,920 300,750 (11,170) Public Works plan check fees and inspections 128,510 128,510 140,335 11,825 Fire plan check and inspection fees 59,380 59,380 46,040 (13,340) Record Compilation Service - - 3,197 3,197 Other planning fees 2,930 2,930 3,453 523 Recreation: Advertising 5,200 5,200 - (5,200) Adult sports 37,780 37,780 160 (37,620) Youth sports 59,300 59,300 34,695 (24,605) Classes 125,000 125,000 13,835 (111,165) Special events 62,600 62,600 28,581 (34,019) Teen Center membership 1,960 1,960 715 (1,245) Budget Variance with Final Budget Positive (Negative) 78 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 140 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues (continued): Charges for Services (continued): Rentals and concessions: Pavilion facility rentals 121,870$ 121,870$ 19,990$ (101,880)$ Other Pavilion rents and concessions 6,740 6,740 1 (6,739) Colony Park Community Center rentals 21,360 21,360 - (21,360) Park charges 36,090 36,090 9,860 (26,230) Zoo: Zoo admissions 236,980 236,980 439,413 202,433 Zoo educational programs 12,810 12,810 20,130 7,320 Zoo gift shop 108,680 137,710 185,028 47,318 Special events- Zoo 30,000 30,000 36,616 6,616 Other Zoo revenues - - 1,231 1,231 Administrative: Copy and mailing fees 4,890 4,890 10,801 5,911 Document imaging fee 18,400 18,400 20,572 2,172 Business license application fees 33,020 33,020 34,246 1,226 Total Charges for Services 2,001,520 2,705,160 3,221,463 516,303 Fines and Forfeitures: Motor vehicle fines 50,000 50,000 31,328 (18,672) Misdemeanor and other minor fines 6,040 6,040 2,140 (3,900) Parking fines 4,000 4,000 316 (3,684) Code enforcement and fire fines 11,930 11,930 2,250 (9,680) Business license penalties 7,960 7,960 10,997 3,037 Other penalties 400 400 2,281 1,881 Total Fines and Forfeitures 80,330 80,330 49,312 (31,018) Use of Money and Property: Interest 56,000 56,000 198,779 142,779 Adjustment to Fair Value-GASB 31 - - (103,654) (103,654) Interest on Measure F-14 Funds 28,690 28,690 55,851 27,161 Measure F-14 Funds Adjustment to Fair Value - - (44,415) (44,415) Total Use of Money and Property 84,690 84,690 106,561 21,871 Variance with Final Budget Positive (Negative) Budget 79 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 141 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues (continued): Other Revenues: Interfund administrative charges General overhead charges 446,880$ 446,880$ 446,880$ -$ Staffing charges for other funds 502,850 502,850 491,458 (11,392) Staffing charges for capital projects 132,980 132,980 214,630 81,650 Staffing charges for CDBG administration - - 9,900 9,900 Administrative charges- Third Parties 3,370 3,370 5,003 1,633 Administrative charges- Successor Agency 132,940 132,940 47,020 (85,920) Workers' compensation reimbursement 6,260 6,260 40,205 33,945 Miscellaneous revenue 18,340 18,340 74,547 56,207 Donations: Police - - 65 65 Recreation - - 1,494 1,494 Other donations - 5,070 5,173 103 Friends of Zoo Donations: Memberships 22,800 22,800 47,093 24,293 Other Zoo donations 1,620 1,620 1,247 (373) Total Other Revenues 1,268,040 1,273,110 1,384,715 111,605 Total Revenues 25,088,680 27,430,930 29,050,510 1,619,580 Variance with Final Budget Positive (Negative) Budget 80 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 142 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures: City Council: Salaries and benefits 62,240$ 70,050$ 69,910$ 140$ Office expense 250 470 468 2 Advertising 700 - - - Computer maintenance and replacement 12,200 12,200 12,200 - Occupancy 55,290 55,290 55,290 - Communications 400 440 433 7 Operating supplies 3,710 1,020 1,012 8 Vehicle and equipment operating costs 200 - - - Contract services 36,500 37,000 36,000 1,000 Professional development 23,450 33,630 33,623 7 Community outreach 52,100 37,370 37,369 1 Chamber of Commerce 134,300 133,870 100,814 33,056 Business development 21,260 21,260 5,000 16,260 LAFCO contribution 19,000 19,000 15,805 3,195 Special projects and community funding: Promotions 230,990 230,990 122,422 108,568 Capital outlay: - 250,000 250,000 - Total City Council 652,590 902,590 740,346 162,244 City Clerk: Office expense 640 640 607 33 Advertising 5,300 5,300 2,060 3,240 Contract services 6,100 6,100 1,690 4,410 Professional development 6,270 6,270 491 5,779 Municipal election 40,660 52,860 37,215 15,645 Total City Clerk 58,970 71,170 42,063 29,107 Budget Variance with Final Budget Positive (Negative) Cash Contribution to Technology Fund for Equipment Replacement for Chamber technology upgrades 81 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 143 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): City Treasurer: Salaries and benefits 5,720$ 6,080$ 6,072$ 8$ Contract services 11,040 11,890 11,889 1 Professional development 80 - - - Total City Treasurer 16,840 17,970 17,961 9 City Attorney: Office expense 80 20 20 - Communications 80 80 79 1 Contract services 285,000 280,060 280,056 4 Special projects and community funding: Castlerock litigation costs - 10,500 10,490 10 Total City Attorney 285,160 290,660 290,645 15 City Manager: Salaries and benefits 1,097,750 1,100,480 988,461 112,019 Office expense 7,730 7,730 5,385 2,345 Computer maintenance and replacement 62,870 69,720 69,718 2 Insurance 17,570 17,570 15,878 1,692 Occupancy 37,910 37,910 37,910 - Communications 2,180 2,380 2,374 6 Operating supplies 10,010 9,250 8,540 710 Vehicle and equipment operating costs 6,340 6,340 6,000 340 Contract services 35,020 33,260 6,872 26,388 Professional development 22,270 14,290 6,679 7,611 Citywide training 7,000 7,000 158 6,842 Recruitment 500 1,220 1,215 5 Employee development 1,650 1,650 450 1,200 Contingency 100,000 37,340 - 37,340 Special projects and community funding: Grant assessement and writing - 5,000 - 5,000 Total City Manager 1,408,800 1,351,140 1,149,640 201,500 Budget Variance with Final Budget Positive (Negative) 82 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 144 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Administrative Services: Salaries and benefits 872,420$ 872,420$ 819,288$ 53,132$ Office expense 14,460 11,580 11,573 7 Advertising 300 300 158 142 Computer maintenance and replacement 85,090 85,090 84,856 234 Insurance 20,040 20,040 18,331 1,709 Occupancy 46,490 54,130 54,122 8 Communications 960 960 889 71 Operating supplies 300 300 - 300 Vehicle and equipment operating costs 3,600 3,600 3,600 - Contract services 182,960 177,070 161,612 15,458 Professional development 6,580 6,580 612 5,968 Contingency 5,000 5,000 - 5,000 Special purchases, projects, and studies: Cost Allocation Study Update 30,220 30,220 14,000 16,220 Development Impact Fee Study 7,000 7,000 7,000 - CCCSIF Supplemental Insurance Payment - 157,380 157,000 380 Total Administrative Services 1,275,420 1,431,670 1,333,041 98,629 Police: Salaries and benefits 6,453,540 6,432,160 6,013,850 418,310 Office expense 13,700 15,910 15,906 4 Computer maintenance and replacement 400,800 416,910 416,902 8 Insurance 414,810 335,820 335,817 3 Occupancy 40,330 48,790 48,787 3 Utilities 37,100 44,190 44,183 7 Communications 36,550 36,810 36,804 6 Operating supplies 22,100 32,050 32,047 3 Vehicle and equipment operating costs 305,980 291,370 291,369 1 Contract services 512,100 583,930 583,923 7 Professional development 14,300 6,250 6,247 3 Recruitment 10,200 13,760 13,754 6 Contingency 10,000 10,000 - 10,000 Budget Variance with Final Budget Positive (Negative) 83 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 145 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Police (continued): Special purchases, projects, and studies: Table set and chairs -$ 320$ 310$ 10$ Scanner - 1,330 1,330 - Blinds and drapes - 440 430 10 8,271,510 8,270,040 7,841,659 428,381 Police Grants: Salaries and benefits - 10,320 10,299 21 Operating supplies 1,800 3,920 3,909 11 Contract services 2,320 1,260 1,254 6 Professional development 34,380 37,970 20,427 17,543 Capital Outlay: Vehicle replacement - 7,350 7,351 (1) 38,500 60,820 43,240 17,580 Total Police 8,310,010 8,330,860 7,884,899 445,961 Fire: Salaries and benefits 4,126,990 4,074,860 3,978,828 96,032 Office expense 3,300 3,300 2,971 329 Advertising - 490 488 2 Computer maintenance and replacement 195,830 198,660 198,653 7 Insurance 93,640 85,560 85,555 5 Occupancy 28,350 29,630 29,625 5 Utilities 23,500 26,070 26,062 8 Communications 16,050 20,710 15,209 5,501 Operating supplies 45,550 52,760 47,250 5,510 130,000 148,690 148,688 2 Contract services 20,350 11,030 11,026 4 Professional development 24,900 24,360 23,632 728 Recruitment 2,800 16,810 16,808 2 Contingency 10,000 10,000 - 10,000 Variance with Final Budget Positive (Negative) Vehicle and equipment operating costs Budget 84 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 146 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Fire (continued): Special purchases, projects, and studies: Washing Machine/Dryer -$ 810$ 803$ 7$ Dishwasher - 380 378 2 Fire field equipment- replace chain saws - 4,910 - 4,910 61,970 61,970 61,966 4 EKG machines - 4,850 4,840 10 Ice Machine - 3,360 3,355 5 Roofing Projects - 4,000 - 4,000 Water Heater - 690 690 - Comprehensive Evacuation Plan 62,450 72,450 49,932 22,518 Capital outlay: - 645,010 645,010 - 4,845,680 5,501,360 5,351,769 149,591 Mutual Aid Program: Salaries and benefits 138,730 781,820 775,480 6,340 Operating supplies 15,000 44,290 44,283 7 Vehicle and equipment operating costs 4,000 5,330 5,246 84 Contract services - 900 900 - 157,730 832,340 825,909 6,431 Weed Abatement and Other Fire Programs: Salaries and benefits 113,620 112,670 112,633 37 Office expense 1,400 1,960 1,952 8 Advertising 400 - - - Operating supplies 1,000 - - - Vehicle and equipment operating costs 2,000 - - - Contract services 71,000 99,960 99,955 5 Special purchases, projects, and studies: COVID-19 Emergency protective measures - 10,880 10,872 8 - 5,500 5,500 - Capital outlay: EMS training equipment (maniken)- 4,880 4,876 4 189,420 235,850 235,788 62 Total Fire 5,192,830 6,569,550 6,413,466 156,084 Replace radios Variance with Final Budget Positive (Negative) Budget Cash Contribution to Vehicle and Equipment Replacement Fund for Equipment Replacement Replace radios 85 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 147 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Community Development: Salaries and benefits 1,429,460$ 1,352,000$ 1,333,115$ 18,885$ Office expense 11,700 19,880 19,874 6 Advertising 3,500 6,410 6,406 4 Computer maintenance and replacement 147,120 149,320 149,310 10 Insurance 26,450 26,450 23,906 2,544 Occupancy 60,600 60,600 60,600 - Communications 2,900 4,750 4,743 7 Operating supplies 750 1,140 1,136 4 Vehicle and equipment operating costs 15,550 15,550 13,775 1,775 Contract services 92,000 141,030 141,030 - Professional development 15,700 15,700 10,013 5,687 Recruitment 700 700 425 275 Contingency 5,000 5,000 - 5,000 Special purchases, projects, and studies: Del Rio Specific Plan - 1,660 1,658 2 Housing Element & Inclusionary Policy 104,940 104,940 23,268 81,672 Mixed use development standards - 10,060 9,490 570 Zoning/Subdivision ordinance update - 960 107 853 REAP Regional Grant-ADU Access & Design - 5,620 - 5,620 Total Community Development 1,916,370 1,921,770 1,798,856 122,914 Central Reception: Salaries and benefits 54,940 54,940 32,694 22,246 Office expense 1,170 1,170 217 953 Computer maintenance and replacement 7,950 7,950 7,950 - Insurance 1,540 1,540 1,397 143 Occupancy 44,240 44,240 44,241 (1) Communications 350 390 385 5 Operating supplies 70 30 - 30 Vehicle and equipment operating costs 50 50 - 50 Professional development 250 30 - 30 Recruitment 120 120 - 120 Special purchases, projects, and studies: Small printers - 220 215 5 Total Central Reception 110,680 110,680 87,099 23,581 Variance with Final Budget Positive (Negative) Budget 86 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 148 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Economic and Business Development: Salaries and benefits -$ 26,240$ 24,059$ 2,181$ Special purchases, projects, and studies: Other office furniture - 8,300 4,235 4,065 Emergency small business micro grant program - 260,610 260,610 - SB1090- Bridgeworks expansion project - 125,000 125,000 - Total Economic and Business Development - 420,150 413,904 6,246 Recreation: Salaries and benefits 356,740 357,490 306,408 51,082 Office expense 5,520 3,130 2,101 1,029 Advertising 26,490 26,490 431 26,059 Computer maintenance and replacement 26,410 26,410 25,330 1,080 Insurance 11,780 21,670 20,535 1,135 Occupancy 37,210 37,030 32,720 4,310 Utilities 4,350 3,100 3,095 5 Communications 850 1,080 1,070 10 Operating supplies 34,830 28,890 10,954 17,936 Vehicle and equipment operating costs 3,600 3,600 3,023 577 Contract services 148,810 144,700 18,164 126,536 Professional development 3,700 3,700 1,774 1,926 Recruitment 650 1,270 1,269 1 Contingency 2,500 2,500 - 2,500 Special purchases, projects and studies: Youth scholarships - 2,380 2,371 9 Total Recreation 663,440 663,440 429,245 234,195 Budget Variance with Final Budget Positive (Negative) 87 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 149 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Community Center: Salaries and benefits 43,550$ 43,550$ 6,012$ 37,538$ Office expense 1,380 1,000 996 4 Advertising 400 80 72 8 Computer maintenance and replacement 9,360 9,360 9,360 - Insurance 15,570 17,180 17,176 4 Occupancy 102,220 102,220 102,220 - Utilities 45,970 44,360 30,623 13,737 Communications 2,000 2,800 2,353 447 Operating supplies 12,620 13,220 5,414 7,806 Vehicle and equipment operating costs 1,150 1,280 302 978 Contract services 17,880 16,880 12,171 4,709 Professional development 1,150 - - - Recruitment 510 100 - 100 Special purchases, projects and studies: Tables - 1,730 1,722 8 Shade sail replacement - 25,000 331 24,669 Total Community Center 253,760 278,760 188,752 90,008 - - Pavilion: Salaries and benefits 152,430 152,430 118,890 33,540 Office expense 1,340 1,210 226 984 Advertising 4,740 4,350 3,006 1,344 Computer maintenance and replacement 10,610 10,610 10,610 - Insurance 7,390 7,470 7,465 5 Occupancy 38,300 38,300 38,300 - Utilities 24,730 24,730 16,326 8,404 Communications 2,010 2,010 1,871 139 Operating supplies 9,250 9,250 3,954 5,296 Vehicle and equipment operating costs 1,270 1,270 6 1,264 Contract services 23,080 23,080 4,116 18,964 Professional development 400 400 - 400 Recruitment 310 310 123 187 Business Development - 440 435 5 Special purchases, projects, and studies: Chairs - 1,540 1,497 43 Folding wall replacement - 7,280 7,279 1 Minor painting projects - 6,400 6,400 - Total Pavilion 275,860 291,080 220,504 70,576 Variance with Final Budget Positive (Negative) Budget 88 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 150 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Zoo: Salaries and benefits 772,490$ 738,520$ 738,349$ 171$ Office expense 1,780 1,450 1,339 111 Advertising 500 - - - Computer maintenance and replacement 45,530 46,630 46,630 - Insurance 19,180 18,050 18,044 6 Occupancy 40,850 40,880 40,872 8 Utilities 43,500 57,780 57,770 10 Communications 1,390 2,900 2,892 8 Operating supplies 95,930 105,080 103,571 1,509 Vehicle and equipment operating costs 6,170 7,120 7,118 2 Contract services 58,500 63,020 63,013 7 Professional development 10,000 9,650 9,649 1 Recruitment 100 640 631 9 Gift shop retail 35,000 65,050 65,041 9 Special purchases, projects, and studies: Animal acquisition - 3,180 3,176 4 Capital outlay: Zoo electrical upgrade - 30,000 - 30,000 Total Zoo 1,130,920 1,189,950 1,158,095 31,855 Budget Variance with Final Budget Positive (Negative) 89 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 151 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Public Works Administration: Salaries and benefits 940,700$ 940,160$ 845,729$ 94,431$ Office expense 5,000 4,780 4,774 6 Advertising - 490 490 - Computer maintenance and replacement 63,810 66,180 66,177 3 Insurance 14,840 13,420 13,415 5 Occupancy charges 24,840 24,840 24,840 - Communications 3,000 2,790 2,788 2 Operating supplies 17,000 15,540 15,531 9 Vehicle and equipment operating costs 10,250 10,950 10,945 5 Contract services 25,000 29,280 29,279 1 Professional development 12,900 8,200 8,190 10 Recruitment 340 1,050 1,046 4 Contingency 7,000 7,000 - 7,000 Special purchases, projects, and studies: Lake dam inundation mapping study - 25,000 20,958 4,042 Total Public Works Administration 1,124,680 1,149,680 1,044,162 105,518 Public Works Operations: Salaries and benefits 223,640 217,410 177,754 39,656 Office expense 2,150 2,150 886 1,264 Computer maintenance and replacement 12,470 12,470 12,470 - Insurance 6,220 6,220 6,077 143 Occupancy charges 12,360 16,370 16,367 3 Utilities 8,500 9,600 9,593 7 Communications 1,600 1,600 1,350 250 Operating supplies 1,280 1,600 1,591 9 Vehicle and equipment operating costs 1,710 1,710 1,328 382 Contract Services 500 500 450 50 Professional development 1,200 1,200 1,000 200 Recruitment - 800 791 9 Special purchases, projects, and studies: Corporate yard building minor remodel - 10,000 - 10,000 California Conservation Corp Projects 22,750 22,750 11,297 11,453 Downtown street tree renewal program - 75,000 5,550 69,450 Computers- new - 1,100 - 1,100 Towable boom lift - 30,000 - 30,000 Skid steer loader - 50,000 - 50,000 Total Public Works Operations 294,380 460,480 246,504 213,976 Variance with Final Budget Positive (Negative) Budget 90 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 152 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Parks: Salaries and benefits 422,140$ 376,940$ 365,037$ 11,903$ Computer maintenance and replacement 9,220 9,220 9,220 - Insurance 12,450 12,450 11,969 481 Occupancy 25,490 25,490 25,490 - Utilities 149,000 168,100 168,096 4 Communications 2,000 2,000 1,361 639 Operating supplies 43,120 43,120 42,280 840 Vehicle and equipment operating costs 28,640 32,240 32,231 9 Contract services 30,150 44,200 44,197 3 Professional development 3,500 3,500 120 3,380 Recruitment 950 950 299 651 Special purchases, projects, and studies: Barbeque grills - 570 562 8 Park lights - 7,150 7,142 8 Creek maintenance projects - 730 725 5 Turf mower - 75,000 - 75,000 Capital outlay: 47,000 47,000 47,000 - Total Parks 773,660 848,660 755,729 92,931 Measure F-14 Sales Tax: Capital outlay: 2019 Pavement Rehabilitation Projects 53,340 53,340 3,636 49,704 2020 Pavement Rehabilitation Projects 2,620,860 2,620,860 2,375,316 245,544 2021 Pavement Resurfacing Projects 300,000 300,000 1,056 298,944 2021 Pavement Rehabilitation Projects 1,608,090 1,608,090 197,016 1,411,074 2022 Pavement Rehabilitation Projects 50,000 50,000 31,131 18,869 Total Measure F-14 Sales Tax 4,632,290 4,632,290 2,608,155 2,024,135 Budget Variance with Final Budget Positive (Negative) Cash contribution to Vehicle and Equipment Fund for purchase of a backhoe tractor 91 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 153 of 215 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Expenditures (continued): Non-Departmental: Special purchases, projects, and studies: Groundwater sustainability plan -$ 2,350$ 2,341$ 9$ COVID-19 Emergency protective measures - 28,510 28,502 8 Capital outlay: - 158,120 158,120 - - 27,400 27,400 - Total Non-Departmental - 216,380 216,363 17 Total expenditures 28,376,660 31,148,930 27,039,429 4,109,501 Excess of revenues over (under) expenditures (3,287,980) (3,718,000) 2,011,081 5,729,081 Other Financing Sources (Uses): 698,950 698,950 698,950 - (200,240) (251,820) (251,817) 3 (1,850) (1,850) (1,850) - (1,400) (1,400) (1,400) - Total other financing sources and uses 495,460 443,880 443,883 3 (2,792,520) (3,274,120) 2,454,964 5,729,084 - - (1,375,175) (1,375,175) (2,792,520)$ (3,274,120)$ 1,079,789 4,353,909$ Fund balance - June 30, 2020 16,256,364 Fund balance - June 30, 2021 17,336,153$ Extraordinary gains/(losses)- Write-off of Redevelopment Loans Net change in fund balance Transfer to Las Lomas Landscape and Lighting District for open space maintenance Transfer to De Anza Landscape and Lighting District for open space maintenance Transfer to Gas Tax Fund for streets maintenance Net changes in fund balance prior to extraordinary item Variance with Final Budget Positive (Negative) Transfer from Community Facilities District Fund Cash contribution to Vehicle and Equipment Fund for reserve fund deficit Cash contribution to Technology Replacement Fund for Laserfiche licenses Budget 92 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 154 of 215 CITY OF ATASCADERO IN LIEU LOW/MODERATE INCOME HOUSING FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Affordable Housing In Lieu Fees -$ -$ 175,389$ 175,389$ Interest income 7,410 7,410 4,819 (2,591) Total revenues 7,410 7,410 180,208 172,798 Expenditures: Contract services 5,000 5,000 - 5,000 Administrative charges 45,400 45,400 45,400 - Special projects: PSHHC Del Rio Ridge Affordable Housing Project 400,000 400,000 - 400,000 Total expenditures 450,400 450,400 45,400 405,000 Net change in fund balance (442,990)$ (442,990)$ 134,808 577,798$ Fund balance, June 30, 2020 5,739,866 Fund balance, June 30, 2021 5,874,674$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2021 93 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 155 of 215 CITY OF ATASCADERO CIRCULATION SYSTEM FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 794,850$ 794,850$ 238,790$ (556,060)$ 80,190 80,190 24,335 (55,855) Interest income 37,800 37,800 10,906 (26,894) Total revenues 912,840 912,840 274,031 (638,809) Expenditures: Capital outlay: 101 @ Del Rio Interchange Project 1,061,480 1,061,480 115,444 946,036 Downtown Infrastructure Enhancement Program 93,170 93,170 24,335 68,835 Total expenditures 1,154,650 1,154,650 139,779 1,014,871 Net change in fund balance (241,810)$ (241,810)$ 134,252 376,062$ Fund balance, June 30, 2020 2,715,750 Fund balance, June 30, 2021 2,850,002$ Budget Variance with Final Budget Positive (Negative) USHA Grant-Downtown Infrastructure Enhancement Program 94 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 156 of 215 CITY OF ATASCADERO FIRE AERIAL VEHICLE IMPACT FEES FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 30,300$ 30,300$ 1,741$ (28,559)$ Total revenues 30,300 30,300 1,741 (28,559) Net change in fund balance 30,300$ 30,300$ 1,741 (28,559)$ Fund balance, June 30, 2020 (741,582) Fund balance, June 30, 2021 (739,841)$ Budget Variance with Final Budget Positive (Negative) 95 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 157 of 215 CITY OF ATASCADERO SCHEDULE OF CHANGES IN THE OPEB LIABILITY AND RELATED RATIOS Last 10 Years* For the Fiscal Year Ended June 30, 2021 The following table provides required supplementary information regarding the City's postemployment healthcare benefits. 2021 2020 2019 2018 Total OPEB Liability Service Cost 8,079$ 9,582$ 13,252$ 7,820$ Interest on total OPEB liability 6,464 6,190 5,763 5,583 Benefit payments (6,726) (6,610) (4,800) (7,400) Net change in total OPEB liability 7,817 9,162 14,215 6,003 OPEB liability, beginning of year 215,480 206,318 192,103 186,100 OPEB liability, end of year 223,297$ 215,480$ 206,318$ 192,103$ Covered payroll 1,200,858$ 1,200,858$ 1,200,858$ 1,126,865$ Total OPEB liability as a percentage of covered payroll 18.59%17.94%17.18%17.05% Notes to Schedule: There were no changes in assumptions reflected above. * Fiscal year 2018 was the first year of implementation, therefore, only four years are shown. Measurement Period 96 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 158 of 215 CITY OF ATASCADERO SCHEDULE OF OPEB CONTRIBUTIONS Last 10 Years As of June 30, 2021 As of June 30,2021,the plan is not administered through a qualified trust.Therefore,there is no Actuarially Determined contribution (ADC).Benefit payments of $6,726 were made on a pay-as-you-go basis for the fiscal year ended June 30,2021.Benefit payments of $6,610 were made on a pay-as-you-go basis for the fiscal year ended June 30, 2020.Benefits payments of $4,800 were made on a pay-as-you-go basis for the fiscal year ended June 30,2019.Benefit payments of $7,400 were made on a pay-as-you-go basis for the fiscal year ended June 30, 2018. 97 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 159 of 215 CITY OF ATASCADERO SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Cost-Sharing Multiple-Employer Defined Pension Plan - Last 10 Years* As of June 30, 2021 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 City's proportion of the net pension liability 0.281480%0.277520%0.275210%0.270324%0.272255%0.278260%0.260250% City's proportionate share of the net pension liability 30,626,061$ 28,437,309$ 26,519,899$ 26,808,749$ 23,558,492$ 19,099,492$ 16,193,941$ City's covered payroll **10,024,682$ 9,541,259$ 9,337,993$ 10,102,742$ 8,658,607$ 8,348,164$ 8,181,272$ 305.51%298.05%284.00%265.36%272.08%228.79%197.94% 43,702,930,887$ 41,426,453,489$ 38,944,855,364$ 37,161,348,332$ 33,358,627,624$ 31,771,217,402$ 30,829,966,631$ 32,822,501,335$ 31,179,414,067$ 29,308,589,559$ 27,244,095,376$ 24,705,532,291$ 24,907,305,871$ 24,607,502,515$ 75.10%75.26%75.26%73.31%74.06%78.40%79.82% * Fiscal year 2015 was the first year of implementation, therefore, only seven years are shown. ** For the year ending on the measurement date. City's proportionate share of the net pension liability as percentage of covered payroll Plan's total pension liability Plan's fiduciary net position Plan's fiduciary net position as a percentage of the plan's total pension liability Fiscal Year End 98 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 160 of 215 CITY OF ATASCADERO SCHEDULE OF PENSION CONTRIBUTIONS Cost-Sharing Multiple-Employer Defined Pension Plan - Last 10 Years* As of June 30, 2021 Contributions for the fiscal year ending:6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Contractually required contribution (actuarially determined)3,742,162$ 3,366,536$ 2,982,660$ 2,685,953$ 2,489,485$ 2,255,947$ 2,227,093$ Contributions in relation to the actuarially determined contributions (3,742,162) (3,366,536) (2,982,660) (2,685,953) (2,489,485) (2,255,947) (2,227,093) Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ Covered payroll **9,943,967$ 10,024,682$ 9,541,259$ 9,337,993$ 10,102,742$ 8,658,607$ 8,348,164$ Contributions as a percentage of covered payroll 37.63%33.58%31.26%28.76%24.64%26.05%26.68% Notes to Schedule Valuation Date 06/30/18 06/30/17 06/30/16 06/30/15 06/30/14 06/30/13 06/30/12 Methods and assumptions used to determine contribution rates: Actuarial cost method Asset valuation method Amortization method Discount rate 7.150%7.150%7.375%7.650%7.650%7.500%7.500% Price inflation 2.50%2.50%2.50%2.75%2.75%2.75%2.75% Salary increases Mortality Post retirement benefit * Fiscal year 2015 was the first year of implementation, therefore, only seven years are shown. ** For the fiscal year ending on the date shown. Entry age 5-year smoothed market Level percentage of payroll, closed Varies by entry age and service Derived using CalPERS' Membership data for all funds Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies 99 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 161 of 215 OTHER SUPPLEMENTARY INFORMATION ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 162 of 215 CITY OF ATASCADERO 2010 BOND DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Interest income- cash and investments 5,000$ 5,000$ (1,194)$ (6,194)$ 712,290 712,290 639,583 (72,707) 2,600 2,600 - (2,600) Total revenues 719,890 719,890 638,389 (81,501) Expenditures: Insurance - - 3,350 (3,350) Contract services 2,600 2,600 1,925 675 Principal 260,000 260,000 260,000 - Interest 712,290 712,290 712,288 2 Total expenditures 974,890 974,890 977,563 (2,673) Net change in fund balance (255,000)$ (255,000)$ (339,174) (84,174)$ Fund balance, June 30, 2020 16,113,939 Fund balance, June 30, 2021 15,774,765$ Budget Variance with Final Budget Positive (Negative) Interest income- 2010 reimbursement agreement with the Successor Agency to the RDA Other 2010 Lease Revenue from Successor Agency 100 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 163 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW SPECIAL REVENUE FUNDS The City has established the following special revenue funds in order to account for the proceeds from revenue sources that are restricted to expenditures for specified purposes: Supplemental Law Enforcement Services Fund This fund is used for Supplemental Law Enforcement Services grant monies received and to account for the allowed expenditures of these funds. Downtown Business Improvement Area Fund The City established a Downtown Business Improvement Area (BIA)in 1986 for the purpose of acquisition,construction,and/or maintenance of parking facilities, decoration of public places,promotion of public events,and the general promotion of business activities in the downtown area.An annual assessment is placed on all businesses in the downtown area,and this fund accounts for the revenues and expenses associated with these BIA monies.The assessment was reduced to $0.00 in 2010 at the behest of downtown landlords as part of a program to encourage downtown business.In January 2018,the Atascadero Colony District Committee requested that the assessment be reinstituted. The assessment was reinstituted effective January 2019. Atascadero Tourism Business Improvement District Fund The City established the Atascadero Tourism Business Improvement District (ATBID)effective June 1,2013,for the purpose of funding tourism promotion and increasing stays at the lodging businesses in Atascadero.A two percent (2%)assessment is placed on the nightly rent of all occupied rooms or spaces for all transient occupancies in Atascadero. Community Development Block Grant Fund This fund is used for Community Development Block Grant monies received from the federal government.These funds must be used for low or moderate income projects,or to eliminate blight in the community.The City receives an annual allocation from the federal government,based on the number of qualified persons in the City. The City holds an annual hearing to determine how this money is to be spent. Tree Plant Fund This fund accounts for Tree Mitigation Fees and the expenditure thereof.A fee may be paid by a developer in lieu of planting a tree on improved property.These funds are then used for the preservation and planting of the City's native trees. Gas Tax Fund This fund accounts for gas tax monies received from the State, which are expended to maintain various streets within the City. Local Transportation Fund This fund accounts for Local Transportation funds that can be used for streets projects.Local Transportation Funds (LTF)must first be spent to meet any reasonable community transit need.The City uses LTF monies to run the City's bus system and to contribute to San Luis Obispo Regional Transit Authority.Any remaining funds are accounted for in this fund and must be used for bikepath projects and streets projects. Street Assessment Fund This fund accounts for assessments collected to maintain various streets within the City. 101 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 164 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) General Government Facilities Fees Fund General Facilities are those limited to office or work buildings and equipment used by City staff to undertake their daily duties.As the City increases in both population and new businesses,City Hall and the City maintenance yard will increasingly become overcrowded with growing staff.New facilities and equipment are necessary to extend the current level of service to these new residents and businesses.Because the need for these new facilities and additional equipment is directly related to new construction,a General Government Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for expanded/new facilities and equipment as listed in the Atascadero Master Facilities Plan, updated February 2006. Storm Drainage Facilities Fees Fund As vacant land is developed and bare dirt or turf is replaced with impervious rooftop,parking lots,driveways,pools and sidewalks,water runoff increases;the cumulative effects of this additional runoff is managed by constructing the appropriate capital facilities.Because the need for these capital facilities is directly related to new construction,a Storm Drainage Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for the construction of the new/increased/improved capital facilities as listed in the Atascadero Master Facilities Plan, updated February 2006. Law Enforcement Facilities Fees Fund Residents and businesses benefit from both direct (response to a call for service)and indirect (crime prevention programs,patrol,etc.)law enforcement services. The addition of new residential units and new businesses necessarily increase the demand upon the law enforcement service level by creating more direct calls for service,more area requiring preventive patrol,and in general,more opportunities for crimes to be committed.If law enforcement capabilities are not expanded, then the increasing number of calls for service will reduce the amount of time available for preventive patrol.Because the need for additional police officers,as well as the need for these officers to be equipped and housed,is directly related to new construction,a Law Enforcement Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for the purchase/construction of equipment/stations for these additional officers as listed in the Atascadero Master Facilities Plan, updated February 2006. Fire Facilities Fees Fund In addition to providing fire prevention programs,the Fire Department responds to calls for fire and medical services from two existing fire stations.Each new residential and business development creates more calls for service,increasing the likelihood of simultaneous (and thus competing)calls for service.Additionally, as development spreads further from the existing stations,response times will necessarily increase,taking the existing engine companies out of service for greater periods of time.These developments create the need for additional facilities and equipment.Because the need for these new facilities and additional equipment is directly related to new construction,a Fire Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for the relocation/construction of fire stations, as well as the purchase of additional equipment, as listed in the Atascadero Master Facilities Plan, updated February 2006. Open Space Acquisition Fees Fund Future residential development, by increasing the City's population, will by definition impact the City's available land and decrease open space. Without open space acquisition,the City's remaining available land will be developed and the City will lose much of its historic charm that is so valuable to residents.Because the need for land acquisition is directly related to new construction,an Open Space Acquisition Fee is charged on all new development.These fees are deposited into this fund and then used for land acquisitions as listed in the Atascadero Master Facilities Plan, updated February 2006. 102 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 165 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) Parkland Facilities Fees Fund Residential development,by increasing the City's population,necessarily impacts the City's park system.Without future parkland and continued development of currently owned,but underutilized parkland,the City's parks become overcrowded and overused with the ultimate result becoming a negative experience for park users.Because the need for new facilities and land acquisitions is directly related to new construction,a Parkland Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for expanded/new facilities and land acquisitions as listed in the Atascadero Master Facilities Plan, updated February 2006. Public Facilities Fees Fund The City currently has existing community use facilities,such as the Pavilion on the Lake and the Colony Park Community Center.Future additional residential units will increase the City's population,placing ever greater demands on existing community use facilities,and new or expanded community center space will be necessary to extend the current level of service to new residents.Because the need for these new facilities is directly related to new construction,a Public Facilities Fee is charged on all new residential development.These fees are deposited into this fund and then used for expanded/new community use facilities as listed in the Atascadero Master Facilities Plan, updated February 2006. Library Expansion Facilities Fees Fund The County Public Library System currently owns and maintains a library facility within the City limits.While the City is not the library service provider,the City's residents and businesses have an interest in maintaining the library service levels.Additional development within the City will increase the demand for a larger sized library and for more volumes within the library.Because the need for expanded library services is directly related to new construction,a Library Facilities Fee is charged on all new development.These fees are deposited into this fund and then are used for the expansion of the amount of library facility space and the expansion of the library collection as listed in the Atascadero Master Facilities Plan,updated February 2006.In December 2010,the County purchased a new library facility at 6555 Capistrano Avenue.The City contributed a total of $315,180 toward the library expansion during the period spanning December 2010 through June 2014. This amount was a combination of impact fees and other funds that had been set aside for library expansion. Community Facilities District Fund This fund is used to account for fees assessed in the Community Facilities District.This district was established in 2005 in order to provide funding for expansion of police,fire,and parks services as the City's population increases.Developments that must obtain Planning Commission approval are subject to annexation into the city-wide district. Apple Valley Street & Storm Drain Assessment District Fund This fund is used to account for fees assessed in a development known as The Colony at Apple Valley.This assessment district was established in 2005 in order to maintain the street and storm drain related improvements in the development. Apple Valley Landscape & Lighting Assessment District Fund This fund is used to account for fees assessed in a development known as The Colony at Apple Valley.This assessment district was established in 2005 in order to maintain the landscape and lighting related improvements in the development. 103 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 166 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) AND CAPITAL PROJECTS FUNDS Las Lomas Street & Storm Drain Assessment District Fund This fund is used to account for fees assessed in a development known as Las Lomas.This assessment district was established in 2005 in order to maintain the street and storm drain related improvements in the development. Las Lomas Landscape & Lighting Assessment District Fund This fund is used to account for fees assessed in a development known as Las Lomas.This assessment district was established in 2005 in order to maintain the landscape and lighting related improvements in the development. De Anza Street & Storm Drain Assessment District Fund This fund is used to account for fees assessed in a development known as De Anza Estates.This assessment district was established in 2005 in order to maintain the street and storm drain related improvements in the development. De Anza Landscape & Lighting Assessment District Fund This fund is used to account for fees assessed in a development known as De Anza Estates.This assessment district was established in 2005 in order to maintain the landscape and lighting related improvements in the development. The City has established the following capital projects funds in order to account for expenditures for specific capital project purposes: Capital Projects Fund This fund is typically used to account for the financial resources used in the construction or acquisition of major capital facilities or equipment obtained by special funding such as grants or dedicated reimbursements. It is also used as a type of clearinghouse for projects with many different sources of funding. 2010 Bond Proceeds Master Agreement Fund On September 1,2010,the City issued $16,010,000 in lease revenue bonds to be used for various redevelopment public improvement projects within the downtown area.As part of June 2011 state legislation,all redevelopment agencies throughout the State were dissolved.At that time,the Redevelopment Agency was in the process of expending the 2010 bond proceeds in accordance with the bond covenants which require the funds to be spent on the Historic City Hall Rehabilitation Project with the remaining funds to be spent on other eligible redevelopment projects.The Historic City Hall Rehabilitation Project has been completed,leaving remaining 2010 bond proceeds.In accordance with redevelopment dissolution law,in August of 2014,the City and the Successor Agency entered into a Master Agreement,transferring all remaining bond proceeds to the City to be spent on projects for which the bonds were originally sold.This fund accounts for the expenditure of those 2010 bond funds transferred to the City under the Master Agreement. Youth Center Construction Fund This fund accounts for funds received for and expended on the construction of the Colony Park Community Center. 104 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 167 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET June 30, 2021 Supplemental Law Enforcement Services Fund Downtown Business Improvement Area Fund Atascadero Tourism Business Improvement District Fund Community Development Block Grant Fund Tree Plant Fund Gas Tax Fund ASSETS Cash and investments 156,397$ 14,545$ 321,741$ -$ 195,657$ 1,007,910$ Receivables: Federal distributions due - - - 350,050 - - Due from State of California - - - - - 101,540 Due from County of San Luis Obispo - - - - - - Accrued interest 363 36 792 - 523 2,042 Other receivables - - 100,778 362 - - Due from other funds - - - - - - Prepaid items - - - - - 730 Total assets 156,760$ 14,581$ 423,311$ 350,412$ 196,180$ 1,112,222$ LIABILITIES AND FUND BALANCES Accounts payable 30,643$ -$ 22,442$ 143,633$ 1,351$ 57,307$ Accrued salaries and benefits 2,294 - - - - 11,865 Due to other funds - - - 206,779 - - Unearned revenue 118,141 - 99 - - - Total liabilities 151,078 - 22,541 350,412 1,351 69,172 Fund Balances: Nonspendable - - - - - 730 Restricted 5,682 14,581 400,770 - 194,829 1,042,320 Assigned for road projects - - - - - - Total fund balances 5,682 14,581 400,770 - 194,829 1,043,050 Total liabilities and fund balances 156,760$ 14,581$ 423,311$ 350,412$ 196,180$ 1,112,222$ Special Revenue Funds 105 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 168 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2021 Special Revenue Funds Local Transportation Fund Street Assessment Fund General Government Facilities Fees Fund Storm Drainage Facilities Fees Fund Law Enforcement Facilities Fees Fund Fire Facilities Fees Fund ASSETS Cash and investments 3,188,828$ 86,992$ 220,583$ 438,112$ 352,503$ 645,550$ Receivables: Federal distributions due 229,820 - - - - - Due from State of California 15,871 - - - - - Due from County of San Luis Obispo 528 33 - - - - Accrued interest 7,588 221 524 1,048 868 1,571 Other receivables - - - - - 387 Due from other funds - - - - - 739,841 Prepaid items - - - - - - Total assets 3,442,635$ 87,246$ 221,107$ 439,160$ 353,371$ 1,387,349$ LIABILITIES AND FUND BALANCES Accounts payable 107,524$ -$ -$ -$ -$ 29$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - - - - - - Total liabilities 107,524 - - - - 29 Fund Balances: Nonspendable - - - - - - Restricted 3,335,111 87,246 221,107 439,160 353,371 1,387,320 Assigned for road projects - - - - - - Total fund balances 3,335,111 87,246 221,107 439,160 353,371 1,387,320 Total liabilities and fund balances 3,442,635$ 87,246$ 221,107$ 439,160$ 353,371$ 1,387,349$ 106 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 169 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2021 Open Space Acquisition Fees Fund Parkland Facilities Fees Fund Public Facilities Fees Fund Library Expansion Facilities Fees Fund Community Facilities District Fund Apple Valley Street & Storm Drain Assessment District Fund ASSETS Cash and investments 793,009$ 509,280$ 6,144$ 233,761$ 50,436$ 488,592$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo - - - - 6,210 276 Accrued interest 1,972 1,942 543 580 186 1,217 Other receivables - - - - - - Due from other funds - - - - - - Prepaid items - - - - - - Total assets 794,981$ 511,222$ 6,687$ 234,341$ 56,832$ 490,085$ LIABILITIES AND FUND BALANCES Accounts payable -$ 51,089$ 2,006$ -$ -$ -$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - - - - - - Total liabilities - 51,089 2,006 - - - Fund Balances: Nonspendable - - - - - - Restricted 794,981 460,133 4,681 234,341 56,832 490,085 Assigned for road projects - - - - - - Total fund balances 794,981 460,133 4,681 234,341 56,832 490,085 Total liabilities and fund balances 794,981$ 511,222$ 6,687$ 234,341$ 56,832$ 490,085$ Special Revenue Funds 107 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 170 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2021 Capital Projects Funds Apple Valley Landscape & Lighting Assessment District Fund Las Lomas Street & Storm Drain Assessment District Fund Las Lomas Landscape & Lighting Assessment District Fund De Anza Street & Storm Drain Assessment District Fund De Anza Landscape & Lighting Assessment District Fund Capital Projects Fund ASSETS Cash and investments 244,054$ 635,282$ 190,310$ 479,174$ 131,126$ 364,371$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo 451 706 503 216 158 - Accrued interest 618 1,533 482 1,206 336 951 Other receivables - - - - - - Due from other funds - - - - - - Prepaid items - - - - - - Total assets 245,123$ 637,521$ 191,295$ 480,596$ 131,620$ 365,322$ LIABILITIES AND FUND BALANCES Accounts payable 11,401$ -$ 4,259$ -$ 500$ -$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue 50,770 - - - - - Total liabilities 62,171 - 4,259 - 500 - Fund Balances: Nonspendable - - - - - - Restricted 182,952 637,521 187,036 480,596 131,120 134,497 Assigned for road projects - - - - - 230,825 Total fund balances 182,952 637,521 187,036 480,596 131,120 365,322 Total liabilities and fund balances 245,123$ 637,521$ 191,295$ 480,596$ 131,620$ 365,322$ Special Revenue Funds 108 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 171 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2021 2010 Bond Proceeds Master Agreement Fund Youth Center Construction Fund TOTALS ASSETS Cash and investments 302,020$ 4,217$ 11,060,594$ Receivables: Federal distributions due - - 579,870 Due from State of California - - 117,411 Due from County of San Luis Obispo - - 9,081 Accrued interest 778 11 27,931 Other receivables - - 101,527 Due from other funds - - 739,841 Prepaid items - - 730 Total assets 302,798$ 4,228$ 12,636,985$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ 432,184$ Accrued salaries and benefits - - 14,159 Due to other funds - - 206,779 Unearned revenue - 1,213 170,223 Total liabilities - 1,213 823,345 Fund Balances: Nonspendable - - 730 Restricted 302,798 3,015 11,582,085 Assigned for road projects - - 230,825 Total fund balances 302,798 3,015 11,813,640 Total liabilities and fund balances 302,798$ 4,228$ 12,636,985$ Capital Projects Funds 109 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 172 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For Fiscal Year Ended June 30, 2021 Supplemental Law Enforcement Services Fund Downtown Business Improvement Area Fund Atascadero Tourism Business Improvement District Fund Community Development Block Grant Fund Tree Plant Fund Gas Tax Fund Revenues: Taxes and assessments -$ 12,971$ 277,287$ -$ -$ -$ Licenses and permits - - - - 15,800 - Intergovernmental revenues 139,125 - - 348,937 - 1,240,022 Use of money and property 1,369 21 2,027 - (19) 10,962 Other revenues - - - - - 34,987 Total revenues 140,494 12,992 279,314 348,937 15,781 1,285,971 Expenditures: Salaries and benefits 64,427 - - - - 406,101 Supplies and services 20,421 11,750 152,211 10,299 34,903 542,996 Special projects and studies 6,800 - - - - 620 Capital outlay 47,477 - - 338,638 - - Total expenditures 139,125 11,750 152,211 348,937 34,903 949,717 Excess of revenues over (under) expenditures 1,369 1,242 127,103 - (19,122) 336,254 Other Financing Sources (Uses): Transfers in - - - - - 251,817 Transfers out - - - - - (98,588) Total other financing sources (uses)- - - - - 153,229 Net change in fund balances 1,369 1,242 127,103 - (19,122) 489,483 Fund balances, June 30, 2020 4,313 13,339 273,667 - 213,951 553,567 Fund balances, June 30, 2021 5,682$ 14,581$ 400,770$ -$ 194,829$ 1,043,050$ Special Revenue Funds 110 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 173 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2021 Local Transportation Fund Street Assessment Fund General Government Facilities Fees Fund Storm Drainage Facilities Fees Fund Law Enforcement Facilities Fees Fund Fire Facilities Fees Fund Revenues: Taxes and assessments -$ 2,160$ -$ -$ -$ -$ Licenses and permits - - 41,074 37,320 22,993 36,954 Intergovernmental revenues 1,133,242 - - - - - Use of money and property 27,413 197 1,172 1,506 1,075 12,915 Other revenues - - - - - - Total revenues 1,160,655 2,357 42,246 38,826 24,068 49,869 Expenditures: Salaries and benefits - - - - - - Supplies and services - - - - - - Special projects and studies 54,613 - - - - - Capital outlay 710,357 - - - - - Total expenditures 764,970 - - - - - Excess of revenues over (under) expenditures 395,685 2,357 42,246 38,826 24,068 49,869 Other Financing Sources (Uses): Transfers in 98,588 - - - - - Transfers out - - - - - - Total other financing sources (uses)98,588 - - - - - Net change in fund balances 494,273 2,357 42,246 38,826 24,068 49,869 Fund balances, June 30, 2020 2,840,838 84,889 178,861 400,334 329,303 1,337,451 Fund balances, June 30, 2021 3,335,111$ 87,246$ 221,107$ 439,160$ 353,371$ 1,387,320$ Special Revenue Funds 111 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 174 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2021 Open Space Acquisition Fees Fund Parkland Facilities Fees Fund Public Facilities Fees Fund Library Expansion Facilities Fees Fund Community Facilities District Fund Apple Valley Street & Storm Drain Assessment District Fund Revenues: Taxes and assessments -$ -$ -$ -$ 625,724$ 38,500$ Licenses and permits 62,252 180,302 40,372 20,395 - - Intergovernmental revenues - - - - - - Use of money and property 2,612 (8,427) (5,044) 805 (2,444) 1,418 Other revenues - - - - - - Total revenues 64,864 171,875 35,328 21,200 623,280 39,918 Expenditures: Salaries and benefits - - - - - - Supplies and services - - - - 5,150 5,987 Special projects and studies - - - - - - Capital outlay - 938,263 85,498 - - - Total expenditures - 938,263 85,498 - 5,150 5,987 Excess of revenues over (under) expenditures 64,864 (766,388) (50,170) 21,200 618,130 33,931 Other Financing Sources (Uses): Transfers in - - - - - - Transfers out - - - - (698,950) - Total other financing sources (uses)- - - - (698,950) - Net change in fund balances 64,864 (766,388) (50,170) 21,200 (80,820) 33,931 Fund balances, June 30, 2020 730,117 1,226,521 54,851 213,141 137,652 456,154 Fund balances, June 30, 2021 794,981$ 460,133$ 4,681$ 234,341$ 56,832$ 490,085$ Special Revenue Funds 112 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 175 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2021 Capital Projects Funds Apple Valley Landscape & Lighting Assessment District Fund Las Lomas Street & Storm Drain Assessment District Fund Las Lomas Landscape & Lighting Assessment District Fund De Anza Street & Storm Drain Assessment District Fund De Anza Landscape & Lighting Assessment District Fund Capital Projects Fund Revenues: Taxes and assessments 63,000$ 92,933$ 66,048$ 30,561$ 15,874$ -$ Licenses and permits 9,900 - - - - - Intergovernmental revenues - - - - - (716) Use of money and property 239 2,559 314 1,280 242 383 Other revenues - - - - - - Total revenues 73,139 95,492 66,362 31,841 16,116 (333) Expenditures: Salaries and benefits - - - - - - Supplies and services 72,665 6,119 62,105 5,971 15,914 - Special projects and studies - - - - - - Capital outlay - - - - - - Total expenditures 72,665 6,119 62,105 5,971 15,914 - Excess of revenues over (under) expenditures 474 89,373 4,257 25,870 202 (333) Other Financing Sources (Uses): Transfers in - - 1,850 - 1,400 - Transfers out - - - - - - Total other financing sources (uses)- - 1,850 - 1,400 - Net change in fund balances 474 89,373 6,107 25,870 1,602 (333) Fund balances, June 30, 2020 182,478 548,148 180,929 454,726 129,518 365,655 Fund balances, June 30, 2021 182,952$ 637,521$ 187,036$ 480,596$ 131,120$ 365,322$ Special Revenue Funds 113 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 176 of 215 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2021 2010 Bond Proceeds Master Agreement Fund Youth Center Construction Fund TOTALS Revenues: Taxes and assessments -$ -$ 1,225,058$ Licenses and permits - - 467,362 Intergovernmental revenues - - 2,860,610 Use of money and property 527 8 53,110 Other revenues - - 34,987 Total revenues 527 8 4,641,127 Expenditures: Salaries and benefits - - 470,528 Supplies and services - - 946,491 Special projects and studies - - 62,033 Capital outlay 1,519 - 2,121,752 Total expenditures 1,519 - 3,600,804 Excess of revenues over (under) expenditures (992) 8 1,040,323 Other Financing Sources (Uses): Transfers in - - 353,655 Transfers out - - (797,538) Total other financing sources (uses)- - (443,883) Net change in fund balances (992) 8 596,440 Fund balances, June 30, 2020 303,790 3,007 11,217,200 Fund balances, June 30, 2021 302,798$ 3,015$ 11,813,640$ Capital Projects Funds 114 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 177 of 215 CITY OF ATASCADERO SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: S.L.E.S.F. Grant 70,930$ 139,130$ 139,125$ (5)$ Interest income - - 1,369 1,369 Total revenues 70,930 139,130 140,494 1,364 Expenditures: Employee services 35,640 64,430 64,427 3 Computer maintenance & replacement - 7,800 7,800 - Operating supplies - 3,780 3,778 2 Contract services 1,290 6,840 6,843 (3) Professional development - 2,000 2,000 - Special projects and purchases: Personal Protective Vests - 6,800 6,800 - Capital outlay: Radio Repeater Project - 47,480 47,477 3 34,000 - - - Total expenditures 70,930 139,130 139,125 5 Net change in fund balance -$ -$ 1,369 1,369$ Fund balance, June 30, 2020 4,313 Fund balance, June 30, 2021 5,682$ Cash Contribution to Vehicle and Equipment Replacement Fund for Vehicle Purchase Budget Variance with Final Budget Positive (Negative) 115 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 178 of 215 CITY OF ATASCADERO DOWNTOWN BUSINESS IMPROVEMENT AREA FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Tourism assessments 10,600$ 11,550$ 12,971$ 1,421$ Interest income 190 190 21 (169) Total revenues 10,790 11,740 12,992 1,252 Expenditures: Main Street Administration 10,800 11,750 11,750 - Total expenditures 10,800 11,750 11,750 - Net change in fund balance (10)$ (10)$ 1,242 1,252$ Fund balance, June 30, 2020 13,339 Fund balance, June 30, 2021 14,581$ Budget Variance with Final Budget Positive (Negative) 116 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 179 of 215 CITY OF ATASCADERO ATASCADERO TOURISM BUSINESS IMPROVEMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Tourism assessments 326,770$ 326,770$ 277,287$ (49,483)$ Interest income 4,670 4,670 2,027 (2,643) Total revenues 331,440 331,440 279,314 (52,126) Expenditures: Office expense 1,000 1,000 - 1,000 Advertising 160,000 160,000 43,142 116,858 Operating Supplies 500 500 - 500 Contract services 151,250 151,250 106,295 44,955 Professional Development 430 430 - 430 Administration 3,270 3,270 2,774 496 Total expenditures 316,450 316,450 152,211 164,239 Net change in fund balance 14,990$ 14,990$ 127,103 112,113$ Fund balance, June 30, 2020 273,667 Fund balance, June 30, 2021 400,770$ Budget Variance with Final Budget Positive (Negative) 117 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 180 of 215 CITY OF ATASCADERO COMMUNITY DEVELOPMENT BLOCK GRANT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Community Development Block Grant 303,590$ 477,260$ 348,937$ (128,323)$ Total revenues 303,590 477,260 348,937 (128,323) Expenditures: Administration: CDBG general administration - 10,300 10,299 1 Special projects and studies: Youth Scholarships - 12,500 - 12,500 Capital outlay: Traffic Way and El Camino Real Barrier Removal 303,590 334,190 334,186 4 Santa Rosa Barrier Removal - 120,270 4,452 115,818 Total expenditures 303,590 477,260 348,937 128,323 Net change in fund balance -$ -$ - -$ Fund balance, June 30, 2020 - Fund balance, June 30, 2021 -$ Budget Variance with Final Budget Positive (Negative) 118 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 181 of 215 CITY OF ATASCADERO TREE PLANT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Permits and fees 10,000$ 10,000$ 15,800$ 5,800$ Interest income 920 920 (19) (939) Total revenues 10,920 10,920 15,781 4,861 Expenditures: Office expense 100 100 - 100 Operating supplies 200 200 - 200 Contract services 19,000 19,000 17,473 1,527 Professional development 500 500 - 500 Administrative charges 17,430 17,430 17,430 - Special projects and studies: Native Tree Replanting 9,000 9,000 - 9,000 Total expenditures 46,230 46,230 34,903 11,327 Net change in fund balance (35,310)$ (35,310)$ (19,122) 16,188$ Fund balance, June 30, 2020 213,951 Fund balance, June 30, 2021 194,829$ Budget Variance with Final Budget Positive (Negative) 119 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 182 of 215 CITY OF ATASCADERO GAS TAX FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Section 2103 highway users tax 283,280$ 283,280$ 200,532$ (82,748)$ Section 2105 highway users tax 184,220 184,220 153,130 (31,090) Section 2106 highway users tax 138,220 138,220 116,363 (21,857) Section 2107 highway users tax 240,620 240,620 207,211 (33,409) Section 2107.5 highway users tax 6,000 6,000 6,000 - SB1- Section 2031 Road Maintenance & Rehabilitation 568,200 568,200 557,213 (10,987) FEMA Revenue- 2017 Storms - - (427) (427) Other revenues - - 34,987 34,987 Interest income 3,620 3,620 10,962 7,342 Total revenues 1,424,160 1,424,160 1,285,971 (138,189) Expenditures: Salaries and benefits 460,030 460,030 406,101 53,929 Computer maintenance & replacement 3,690 3,690 3,690 - Insurance 17,850 17,850 16,511 1,339 Utilities 110,000 115,640 115,635 5 Communications 1,500 1,500 1,442 58 Operating supplies and equipment 45,000 46,740 20,318 26,422 Vehicle and equipment operations 51,570 51,570 42,135 9,435 Contract services 112,500 112,500 91,355 21,145 Professional development 3,450 3,450 1,500 1,950 Recruitment 200 200 - 200 Department service allocation 140,570 140,570 140,570 - Administrative charges 109,840 109,840 109,840 - Special projects Portable Generator - 620 620 - Total expenditures 1,056,200 1,064,200 949,717 114,483 Excess of revenues over (under) expenditures 367,960 359,960 336,254 (23,706) Budget Variance with Final Budget Positive (Negative) 120 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 183 of 215 CITY OF ATASCADERO GAS TAX FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Other Financing Sources (Uses): 200,240$ 208,240$ 251,817$ 43,577$ (1,045,310) (1,045,310) (98,588) 946,722 Total other financing sources (uses)(845,070) (837,070) 153,229 990,299 Net change in fund balance (477,110)$ (477,110)$ 489,483 966,593$ Fund balance, June 30, 2020 553,567 Fund balance, June 30, 2021 1,043,050$ Transfer out to Local Transportation Fund for El Camino Real Rehabilitation South (SB1) Budget Variance with Final Budget Positive (Negative) Transfer from General Fund for street maintenance 121 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 184 of 215 CITY OF ATASCADERO LOCAL TRANSPORTATION FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Local Transportation Tax- Article 3 Bike Paths 28,860$ 28,860$ 22,448$ (6,412)$ Local Transportation Tax- Article 8 Streets 882,480 882,480 701,851 (180,629) HBRR Grant - Via Avenue Bridge 3,100,580 3,100,580 76,957 (3,023,623) HBRR Grant - Santa Lucia Bridge 1,717,710 1,717,710 286,120 (1,431,590) USHA- Traffic Way/Ardilla Ave Rehabilitation 285,270 285,270 528 (284,742) Local Roadway Safety Plan 72,000 72,000 46,635 (25,365) RSHA- Hwy 41 Complete Streets 118,510 118,510 - (118,510) OES Revenue- 2017 Storms - - (1,297) (1,297) Interest income 37,660 37,660 27,413 (10,247) Total revenues 6,243,070 6,243,070 1,160,655 (5,082,415) Expenditures: Special projects: Pavement Crack Sealing Preservation Program 60,000 60,000 - 60,000 Hwy 41 Complete Streets 118,510 118,510 - 118,510 Citywide Pavement Condition Evaluation Update 7,160 7,160 508 6,652 25,000 25,000 - 25,000 Balboa Road Emergency Access Repairs 2,750 2,750 - 2,750 Local Roadway Safety Plan 85,820 85,820 54,105 31,715 Capital outlay: Viejo Camino Road Rehabilitation Project 33,040 33,040 - 33,040 Santa Lucia Road Rehabilitation Project 152,420 152,420 - 152,420 2019 Pavement Resurfacing Project- Multiple Roads 33,690 33,690 - 33,690 San Anselmo Rehabilitation Project- West 90,010 90,010 330 89,680 El Camino Real Rehabilitation Project- South 1,250,000 1,250,000 98,588 1,151,412 Traffic Way/Ardilla Avenue Rehabilitation 285,270 285,270 528 284,742 2020 Pavement Resurfacing - Multiple Roads 283,290 283,290 26,773 256,517 San Gabriel Road Rehabilitation 51,000 96,900 93,452 3,448 San Marcos Road Rehabilitation 44,000 84,200 70,802 13,398 San Marcos Road Embankment Subsidence Repair 275,000 275,000 1,675 273,325 Via Avenue Bridge Replacement 3,502,300 3,502,300 86,927 3,415,373 Santa Lucia Road Bridge Replacement 1,717,710 1,717,710 331,282 1,386,428 Total expenditures 8,016,970 8,103,070 764,970 7,338,100 Excess of revenues over (under) expenditures (1,773,900) (1,860,000) 395,685 2,255,685 Budget Variance with Final Budget Positive (Negative) Bridge Evaluations and Studies 122 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 185 of 215 CITY OF ATASCADERO LOCAL TRANSPORTATION FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Other Financing Sources (Uses): 1,045,310$ 1,045,310$ 98,588$ (946,722)$ Total other financing sources (uses)1,045,310 1,045,310 98,588 (946,722) Net change in fund balance (728,590)$ (814,690)$ 494,273 1,308,963$ Fund balance, June 30, 2020 2,840,838 Fund balance, June 30, 2021 3,335,111$ Transfer from Gas Tax Fund for El Camino Real Rehabilitation Project South (SB1) Budget Variance with Final Budget Positive (Negative) 123 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 186 of 215 CITY OF ATASCADERO STREET ASSESSMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Taxes and special assessments- Lobos Lane 280$ 280$ 280$ -$ Taxes and special assessments- Sonora / Pinal 380 380 380 - Taxes and special assessments- Maleza 180 180 180 - Taxes and special assessments- San Fernando 580 580 580 - Taxes and special assessments- Aguila 100 100 100 - Taxes and special assessments- Pinal / Escarpa 180 180 180 - Taxes and special assessments- Cayucos 220 220 220 - Taxes and special assessments- Falda 240 240 240 - Interest income 590 590 197 (393) Total revenues 2,750 2,750 2,357 (393) Net change in fund balance 2,750 2,750 2,357 (393) Fund balance, June 30, 2020 84,889 Fund balance, June 30, 2021 87,246$ Variance with Final Budget Positive (Negative) Budget 124 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 187 of 215 CITY OF ATASCADERO GENERAL GOVERNMENT FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 127,270$ 127,270$ 41,074$ (86,196)$ Interest income 5,020 5,020 1,172 (3,848) Total revenues 132,290 132,290 42,246 (90,044) Net change in fund balance 132,290$ 132,290$ 42,246 (90,044)$ Fund balance, June 30, 2020 178,861 Fund balance, June 30, 2021 221,107$ Variance with Final Budget Positive (Negative) Budget 125 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 188 of 215 CITY OF ATASCADERO STORM DRAINAGE FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 63,450$ 63,450$ 37,320$ (26,130)$ Interest income 810 810 1,506 696 Total revenues 64,260 64,260 38,826 (25,434) Expenditures: Special projects and studies: Drainage Improvement Program 50,000 50,000 - 50,000 Capital projects: Culvert Replacement & Inlet Improvement Program 185,500 185,500 - 185,500 Total expenditures 235,500 235,500 - 235,500 Net change in fund balance (171,240)$ (171,240)$ 38,826 210,066$ Fund balance, June 30, 2020 400,334 Fund balance, June 30, 2021 439,160$ Variance with Final Budget Positive (Negative) Budget 126 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 189 of 215 CITY OF ATASCADERO LAW ENFORCEMENT FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 61,740$ 61,740$ 22,993$ (38,747)$ Interest income 6,740 6,740 1,075 (5,665) Total revenues 68,480 68,480 24,068 (44,412) Net change in fund balance 68,480$ 68,480$ 24,068 (44,412)$ Fund balance, June 30, 2020 329,303 Fund balance, June 30, 2021 353,371$ Budget Variance with Final Budget Positive (Negative) 127 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 190 of 215 CITY OF ATASCADERO FIRE FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 89,740$ 89,740$ 36,954$ (52,786)$ Rental income 10,800 10,800 10,800 - Interest income 10,960 10,960 2,115 (8,845) Total revenues 111,500 111,500 49,869 (61,631) Net change in fund balance 111,500$ 111,500$ 49,869 (61,631)$ Fund balance, June 30, 2020 1,337,451 Fund balance, June 30, 2021 1,387,320$ Budget Variance with Final Budget Positive (Negative) 128 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 191 of 215 CITY OF ATASCADERO OPEN SPACE ACQUISITION FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 162,710$ 162,710$ 62,252$ (100,458)$ Interest income 15,130 15,130 2,612 (12,518) Total revenues 177,840 177,840 64,864 (112,976) Net change in fund balance 177,840$ 177,840$ 64,864 (112,976)$ Fund balance, June 30, 2020 730,117 Fund balance, June 30, 2021 794,981$ Budget Variance with Final Budget Positive (Negative) 129 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 192 of 215 CITY OF ATASCADERO PARKLAND FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 398,670$ 398,670$ 180,302$ (218,368)$ Interest income 18,740 18,740 (8,427) (27,167) Total revenues 417,410 417,410 171,875 (245,535) Expenditures: Capital Projects: Atascadero Lake Pipeline Repair 144,610 144,610 7,341 137,269 La Plaza Park Project 440,890 1,057,590 922,139 135,451 Pickleball Courts @ Colony Park - 15,000 8,783 6,217 Total expenditures 585,500 1,217,200 938,263 278,937 Net change in fund balance (168,090)$ (799,790)$ (766,388) 33,402$ Fund balance, June 30, 2020 1,226,521 Fund balance, June 30, 2021 460,133$ Budget Variance with Final Budget Positive (Negative) 130 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 193 of 215 CITY OF ATASCADERO PUBLIC FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 103,280$ 103,280$ 40,372$ (62,908)$ Interest income 2,360 2,360 (5,044) (7,404) Total revenues 105,640 105,640 35,328 (70,312) Expenditures: Capital projects: Zoo Garden Event Center 157,240 157,240 85,498 71,742 Total expenditures 157,240 157,240 85,498 71,742 Net change in fund balance (51,600)$ (51,600)$ (50,170) 1,430$ Fund balance, June 30, 2020 54,851 Fund balance, June 30, 2021 4,681$ Budget Variance with Final Budget Positive (Negative) 131 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 194 of 215 CITY OF ATASCADERO LIBRARY EXPANSION FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Impact fees 56,930$ 56,930$ 20,395$ (36,535)$ Interest income 4,550 4,550 805 (3,745) Total revenues 61,480 61,480 21,200 (40,280) Net change in fund balance 61,480$ 61,480$ 21,200 (40,280)$ Fund balance, June 30, 2020 213,141 Fund balance, June 30, 2021 234,341$ Budget Variance with Final Budget Positive (Negative) 132 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 195 of 215 CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 603,080$ 603,080$ 625,724$ 22,644$ Interest income 1,580 1,580 (2,444) (4,024) Total revenues 604,660 604,660 623,280 18,620 Expenditures: Contract services 5,950 5,950 5,150 800 Total expenditures 5,950 5,950 5,150 800 Excess of revenues over (under) expenditures 598,710 598,710 618,130 19,420 Other Financing Sources (Uses): (698,950) (698,950) (698,950) - Total other financing sources (uses)(698,950) (698,950) (698,950) - Net change in fund balance (100,240)$ (100,240)$ (80,820) 19,420$ Fund balance, June 30, 2020 137,652 Fund balance, June 30, 2021 56,832$ Transfer to the General Fund for police, fire and parks services For the Fiscal Year Ended June 30, 2021 Budget Variance with Final Budget Positive (Negative) 133 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 196 of 215 CITY OF ATASCADERO APPLE VALLEY STREET & STORM DRAIN ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 38,500$ 38,500$ 38,500$ -$ Interest income 5,490 5,490 1,418 (4,072) Total revenues 43,990 43,990 39,918 (4,072) Expenditures: Advertising 300 300 99 201 Contract services 18,510 17,630 3,775 13,855 Administration 1,240 2,120 2,113 7 Total expenditures 20,050 20,050 5,987 14,063 Net change in fund balance 23,940$ 23,940$ 33,931 9,991$ Fund balance, June 30, 2020 456,154 Fund balance, June 30, 2021 490,085$ Budget For the Fiscal Year Ended June 30, 2021 Variance with Final Budget Positive (Negative) 134 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 197 of 215 CITY OF ATASCADERO APPLE VALLEY LANDSCAPE & LIGHTING ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 63,000$ 63,000$ 63,000$ -$ Contributions from developer 9,900 9,900 9,900 - Interest income 2,510 2,510 239 (2,271) Total revenues 75,410 75,410 73,139 (2,271) Expenditures: Advertising 500 500 323 177 Utilities 13,220 18,150 18,143 7 Operating supplies 2,500 2,500 96 2,404 Contract services 60,230 55,050 51,757 3,293 Administration 2,100 2,350 2,346 4 Total expenditures 78,550 78,550 72,665 5,885 Net change in fund balance (3,140)$ (3,140)$ 474 3,614$ Fund balance, June 30, 2020 182,478 Fund balance, June 30, 2021 182,952$ For the Fiscal Year Ended June 30, 2021 Budget Variance with Final Budget Positive (Negative) 135 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 198 of 215 CITY OF ATASCADERO LAS LOMAS STREET & STORM DRAIN ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 92,240$ 92,240$ 92,933$ 693$ Interest income 6,180 6,180 2,559 (3,621) Total revenues 98,420 98,420 95,492 (2,928) Expenditures: Advertising 300 300 99 201 Contract services 17,830 17,380 3,775 13,605 Administration 1,800 2,250 2,245 5 Special projects and studies: Slurry Seal 394,000 394,000 - 394,000 Total expenditures 413,930 413,930 6,119 407,811 Net change in fund balance (315,510)$ (315,510)$ 89,373 404,883$ Fund balance, June 30, 2020 548,148 Fund balance, June 30, 2021 637,521$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2021 136 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 199 of 215 CITY OF ATASCADERO LAS LOMAS LANDSCAPE & LIGHTING ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 66,050$ 66,050$ 66,048$ (2)$ Interest income 2,550 2,550 314 (2,236) Total revenues 68,600 68,600 66,362 (2,238) Expenditures: Advertising 500 500 323 177 Utilities 4,800 6,930 6,923 7 Operating supplies 1,080 1,080 123 957 Contract services 76,900 73,790 52,406 21,384 Administration 1,360 2,340 2,330 10 Special projects and studies: Planting and landscape project 4,000 4,000 - 4,000 Total expenditures 88,640 88,640 62,105 26,535 Excess of revenues over (under) expenditures (20,040) (20,040) 4,257 24,297 Other Financing Sources (Uses): 1,850 1,850 1,850 - Total other financing sources (uses)1,850 1,850 1,850 - Net change in fund balance (18,190)$ (18,190)$ 6,107 24,297$ Fund balance, June 30, 2020 180,929 Fund balance, June 30, 2021 187,036$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2021 Transfer from the General Fund for open space maintenance 137 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 200 of 215 CITY OF ATASCADERO DE ANZA STREET & STORM DRAIN ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 30,560$ 30,560$ 30,561$ 1$ Interest income 6,500 6,500 1,280 (5,220) Total revenues 37,060 37,060 31,841 (5,219) Expenditures: Advertising 300 300 99 201 Contract services 19,100 18,680 3,856 14,824 Administration 1,600 2,020 2,016 4 Total expenditures 21,000 21,000 5,971 15,029 Net change in fund balance 16,060$ 16,060$ 25,870 9,810$ Fund balance, June 30, 2020 454,726 Fund balance, June 30, 2021 480,596$ For the Fiscal Year Ended June 30, 2021 Budget Variance with Final Budget Positive (Negative) 138 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 201 of 215 CITY OF ATASCADERO DE ANZA LANDSCAPE & LIGHTING ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 15,880$ 15,880$ 15,874$ (6)$ Interest income 1,730 1,730 242 (1,488) Total revenues 17,610 17,610 16,116 (1,494) Expenditures: Advertising 500 500 323 177 Utilities 500 1,180 1,171 9 Operating supplies 840 840 96 744 Contract services 20,790 20,110 12,216 7,894 Administration 2,180 2,180 2,108 72 Special projects and studies: Landscape Improvements 5,200 5,200 - 5,200 Total expenditures 30,010 30,010 15,914 14,096 Excess of revenues over (under) expenditures (12,400) (12,400) 202 12,602 Other Financing Sources (Uses): 1,400 1,400 1,400 - Total other financing sources (uses)1,400 1,400 1,400 - Net change in fund balance (11,000)$ (11,000)$ 1,602 12,602$ Fund balance, June 30, 2020 129,518 Fund balance, June 30, 2021 131,120$ Transfer from the General Fund for open space maintenance For the Fiscal Year Ended June 30, 2021 Budget Variance with Final Budget Positive (Negative) 139 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 202 of 215 CITY OF ATASCADERO CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: OES Revenue- 2017 Storms -$ -$ (716)$ (716)$ Interest income 6,450 6,450 383 (6,067) Total revenues 6,450 6,450 (333) (6,783) Net change in fund balance 6,450$ 6,450$ (333) (6,783)$ Fund balance, June 30, 2020 365,655 Fund balance, June 30, 2021 365,322$ Variance with Final Budget Positive (Negative) Budget 140 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 203 of 215 CITY OF ATASCADERO 2010 BOND PROCEEDS MASTER AGREEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Interest income -$ -$ 527$ 527$ Total revenues - - 527 527 Expenditures: Capital outlay: Purchase East Mall Tax Default Properties - 1,520 1,519 1 Centennial Bridge and Plaza Project 256,570 255,050 - 255,050 Maiden Statue Placement 15,000 15,000 - 15,000 Downtown Parking Wayfinding Signage 15,000 15,000 - 15,000 Total expenditures 286,570 286,570 1,519 285,051 Net change in fund balance (286,570)$ (286,570)$ (992) 285,578$ Fund balance, June 30, 2020 303,790 Fund balance, June 30, 2021 302,798$ Budget Variance with Final Budget Positive (Negative) 141 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 204 of 215 CITY OF ATASCADERO YOUTH CENTER CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2021 Original Final Actual Amounts Revenues: Interest income -$ -$ 8$ 8$ Total revenues - - 8 8 Net change in fund balance -$ -$ 8 8$ Fund balance, June 30, 2020 3,007 Fund balance, June 30, 2021 3,015$ Budget Variance with Final Budget Positive (Negative) 142 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 205 of 215 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2021 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals ASSETS Current Assets: Cash and investments 1,860,464$ 4,088,303$ 4,025,290$ 9,974,057$ Receivables: Accrued interest 4,236 9,180 10,300 23,716 Prepaid expenses 13,699 - - 13,699 Total current assets 1,878,399 4,097,483 4,035,590 10,011,472 Capital Assets: Non-depreciable: Construction in progress 544 154,258 1,415,312 1,570,114 Depreciable: Vehicles - 5,378,795 - 5,378,795 Equipment 3,746,631 3,889,965 21,024 7,657,620 Structures and improvements - - 51,351,597 51,351,597 Accumulated depreciation (2,839,463) (6,493,932) (10,947,785) (20,281,180) Net capital assets 907,712 2,929,086 41,840,148 45,676,946 Total assets 2,786,111 7,026,569 45,875,738 55,688,418 DEFERRED OUTFLOWS Deferred outflows related to pensions 89,892 - 84,613 174,505 Total deferred outflows 89,892 - 84,613 174,505 LIABILITIES Current Liabilities: Accounts payable 52,035 37,351 18,195 107,581 Accrued salaries and benefits 15,297 - 8,912 24,209 Unearned revenue - - 700 700 Noncurrent Liabilities: Noncurrent liabilities 597,308 - 505,734 1,103,042 Total liabilities 664,640 37,351 533,541 1,235,532 143 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 206 of 215 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION (continued) June 30, 2021 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals DEFERRED INFLOWS Deferred inflows related to pensions 21,679$ -$ 22,282$ 43,961$ Total deferred inflows 21,679 - 22,282 43,961 NET POSITION Net investment in capital assets 907,712 2,929,086 41,840,148 45,676,946 Unrestricted 1,281,972 4,060,132 3,564,380 8,906,484 Total net position 2,189,684$ 6,989,218$ 45,404,528$ 54,583,430$ 144 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 207 of 215 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2021 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating Revenues: Charges for services 993,030$ 222,110$ 604,960$ 1,820,100$ Total operating revenues 993,030 222,110 604,960 1,820,100 Operating Expenses: Salaries and benefits 545,945 - 295,020 840,965 Office expense 441 - - 441 Computer maintenance, software and replacement - - 3,370 3,370 Insurance - - 68,679 68,679 Occupancy and rental costs 43,190 - - 43,190 Utilities - - 90,338 90,338 Communications 69,132 - 2,406 71,538 Operating supplies and services 19,421 - 24,038 43,459 Vehicle and equipment operating costs 124 - 11,347 11,471 Contract services 108,045 - 39,559 147,604 Professional development 3,273 - - 3,273 Administrative charges 21,770 - 52,080 73,850 Special projects: Monitors 1,409 - - 1,409 Wireless networks 1,102 - - 1,102 Depreciation 226,407 572,183 1,151,447 1,950,037 Total operating expenses 1,040,259 572,183 1,738,284 3,350,726 Operating income (loss)(47,229) (350,073) (1,133,324) (1,530,626) 145 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 208 of 215 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2021 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Non-Operating Revenues (Expenses): Interest income 7,515$ 14,611$ 7,299$ 29,425$ Gain (loss) on sale of capital assets - 5,940 - 5,940 Total non-operating revenues (expenses)7,515 20,551 7,299 35,365 Change in net position prior to capital contributions (39,714) (329,522) (1,126,025) (1,495,261) Capital Contributions: Cash contributions from other funds 277,400 850,130 - 1,127,530 Capital contributions from other funds - 59,704 1,355,058 1,414,762 Total capital contributions 277,400 909,834 1,355,058 2,542,292 Change in net position 237,686 580,312 229,033 1,047,031 Total net position, June 30, 2020 1,951,998 6,408,906 45,175,495 53,536,399 Total net position, June 30, 2021 2,189,684$ 6,989,218$ 45,404,528$ 54,583,430$ 146 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 209 of 215 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2021 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Cash Flows From Operating Activities: Internal activity - payments from other funds 993,030$ 222,110$ 604,960$ 1,820,100$ Payments to suppliers of goods and services (224,207) 35,884 (289,512) (477,835) Payments for employee services (515,930) - (282,740) (798,670) Net cash provided by operating activities 252,893 257,994 32,708 543,595 Acquisition of capital assets (210,566) (436,746) - (647,312) Cash contributions received for capital purchases 277,400 850,130 - 1,127,530 Proceeds from sale of capital assets - 5,940 - 5,940 Net cash provided by capital and related financing activities 66,834 419,324 - 486,158 Cash Flows From Investing Activities: Interest income 7,265 14,287 7,435 28,987 Net cash provided by investing activities 7,265 14,287 7,435 28,987 Net increase in cash and cash equivalents 326,992 691,605 40,143 1,058,740 Cash and cash equivalents - June 30, 2020 1,533,472 3,396,698 3,985,147 8,915,317 Cash and cash equivalents - June 30, 2021 1,860,464$ 4,088,303$ 4,025,290$ 9,974,057$ Cash Flows From Capital and Related Financing Activities: 147 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 210 of 215 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2021 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating income (loss)(47,229)$ (350,073)$ (1,133,324)$ (1,530,626)$ Depreciation expense 226,407 572,183 1,151,447 1,950,037 Prepaid expenses 16,633 - - 16,633 Accounts payable 27,067 37,351 2,305 66,723 Accrued salaries and benefits 1,385 (1,467) (731) (813) Deferred outflows (7,816) - (4,741) (12,557) Deferred inflows (11,831) - (7,175) (19,006) Net pension liability 52,325 - 31,736 84,061 Compensated absences (4,048) - (6,809) (10,857) Net cash provided by operating activities 252,893$ 257,994$ 32,708$ 543,595$ Reconciliation of operating income (loss) to net cash provided by operating activities: Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Change in assets, deferred outflows, liabilities, and deferred inflows: 148 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 1 Page 211 of 215 Moss, Levy & Hartzheim LLP Certified Public Accountants 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455 Tel 805.925.2579 Fax 805.925.2147 mlhcpas.com BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA INDEPENDENT AUDITORS' 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 City Council City of Atascadero Atascadero, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atascadero (the City), as of and for the fiscal year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated November 30, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’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 entity’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. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’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 or other matters that are required to be reported under Government Auditing Standards. 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Santa Maria, California November 30, 2021 ITEM NUMBER: C-1 DATE: 01/25/22 ATTACHMENT: 2 Page 212 of 215 ITEM NUMBER: C-2 DATE: 01/25/22 Atascadero City Council Staff Report – Atascadero Fire & Emergency Services Department Staffing for Adequate Fire and Emergency Response (SAFER) Grant RECOMMENDATION: Council authorize the Fire Chief to apply for and City Manager to execute a grant contract for a SAFER grant that would reimburse the City for the cost of three additional firefighters for three years. DISCUSSION: The Department of Homeland Security (DHS) Federal Emergency Management Agency (FEMA) is responsible for the implementation and administration of the Staffing for Adequate Fire and Emergency Response (SAFER) Grants. SAFER is a competitive, discretionary grant program. It provides financial assistance to help fire departments hire new firefighters. The goal is to help departments improve staffing levels to ensure they have adequate personnel to respond and safely perform at incident scenes; providing protection from fire and fire-related hazards in their communities. This grant program provides three-year grants to assist fire departments by paying all salaries and benefits of the SAFER-funded positions. In Fiscal Year (FY) 2021, Congress appropriated a total of $560 million to DHS for SAFER grants. The City has applied and has been selected to receive SAFER grants in both 2011 and 2018. The 2018 grant was completed in 2021 and that firefighter position was then included in the 2021-2023 City Budget. Grantees must maintain their staffing at the level that existed at the time of award as well as the SAFER-funded staffing for the three-year period of performance, unless the grantee has been afforded a waiver of this requirement. The layoff of firefighters duri ng the three-year period of performance will result in the termination of the grant award. If a SAFER grantee loses a firefighter for any reason (such as attrition or termination) during the three-year period of performance, the department must fill the position or lose funding for the position until the vacancy is filled. The only exception is for grantees that receive waivers from FEMA for the vacated positions that have been lost due to documentable economic hardship. Page 213 of 215 ITEM NUMBER: C-2 DATE: 01/25/22 Currently, Atascadero Fire and Emergency Services has 18 full-time firefighters assigned to shift work and daily emergency response. They are divided into three shifts o f six firefighters each. Each shift works 48 straight hours on duty, with three firefighters at each of the two fire stations. A daily staffing level of three fire personnel per engine helps to provide an effective, safe response for the majority of emergencies that may occur. Currently, to maintain this number of six firefighters per day, a significant amount of overtime money is relied on to cover absences from vacation, illness or training. Staff is recommending that the City apply for three SAFER grant firefighters, which equals one additional firefighter per shift. Adding one additional fire personnel per shift increases on-duty staff per shift to seven from the current level of six firefighters. This additional firefighter will help maintain staffing levels of three per engine, while significantly reducing overtime expenditures.. The City currently budgets $344,000 per year in overtime spending, which has historically been mostly used for shift coverage. Adding one firefighter per shift to increase current staffing level will help to ensure that there are six personnel on duty every day, even during times of: • Long Term injuries –Our workforce has experienced multiple back injuries, knees, shoulders and more. In 2021, a shoulder surgery kept a firefighter off duty for eight months. • COVID illness or quarantining requirements. • Vacations and holiday time. • Lengthy training courses such as those required for Paramedic and Haz Mat Specialist. Staff estimates adding three SAFER positions could cut the Fire Department’s shift coverage overtime expenditures by 50 to 70%. The National Fire Protection Association makes staffing recommendations that may be helpful to look at: • NFPA 1710– Current standard establishes a minimum of four firefighters per engine. (5.2.3.1.1) • NFPA 1710 – Current standard establishes initial first alarm as a minimum of 16 firefighters deployed in less than eight minutes to the fireground of a single- family structure fire. (5.2.4.1.1) • NFPA – National average number of career firefighters per 1,000 population of a City our size is 1.62 for fire departments with similar work schedules. The Western region ratio is 0.97 career firefighters per 1,000. Atascadero is currently at 0.7 firefighters per 1,000. While it is understood that industry standards and national averages are currently beyond our reach, it is also important to understand the underlying safety factors that drive these numbers. High performance CPR is far more effective when initiated by three trained personnel and equates to more lives saved after cardiac arrest. Addition ally, a three- person engine company is able to perform a more aggressive fire attack during a structure fire which also saves lives and property. Staffing both engines with three personnel provides a more robust response to the community, increasing survivability of victims from a medical emergency or a fire. Page 214 of 215 ITEM NUMBER: C-2 DATE: 01/25/22 Atascadero continues to grow with many housing and commercial projects in the building or development phase. With this growth comes an increased volume of calls for service. At some point in the future, Atascadero will need to address the increasing incidence of overlapping emergencies. To alleviate the incidence of stacked or overlapping calls and to continue to provide the level of service this City has come to expect, plans include adding a 2-person squad in the future to our response model. The 2-person squad could be utilized in lieu of the second engine for a dual response, maintaining availability of a fire engine in the City. With a squad responding to a portion of emergency calls, the fire engines would become more available, which will result in fewer overlapping calls and lower response times. If Atascadero is able to secure three SAFER positions, this would be half of the staffing necessary to add a squad to our response model. While the grant would allow the City to add three new fire personnel at a minimal cost, thus improving service to the community, accepting the grant if awarded to the City has some potential down sides. What happens at the end of the three-year grant period, when there are no identified funds to pay the estimated $530,000 in annual cost for the three fire positions? The SAFER grant does require the City to maintain staffing levels during the course of the grant, but does not require the City to keep the three positions at the conclusion of the grant. At the end of the grant period, the City will have to do one of the following: • Find and prioritize funding in the City budget in order to use City General Funds to pay for one or more the fire personnel hired through the SAFER grant. • Keep the three fire fighter positions by successfully obtaining another SAFER grant or other grant. (It is unlikely that the City will be competitive for additional grants to maintain the positions.) • Consider laying off one or more of the three fire personnel hired through the SAFER grant, and reducing service levels back down to existing service levels. Staff recommends that Council authorize applying for and, if awarded receiving, a SAFER grant to reimburse the City for adding three new firefighter positions for a period of three years. The addition of three firefighter positions could significantly reduce overtime costs and would generally improve community and fire personnel safety. The SAFER grant would require the City to maintain existing staffing levels (plus the additional SAFER positions) throughout the life of the grant or risk terminating th e grant. The grant does not require the City to keep the three additional positions at the end of the grant period and there is currently no identified funding to maintain the positions when the grant expires. FISCAL IMPACT: There is no fiscal impact in applying for the SAFER grant. If awarded the City would receive funding for three firefighters for three years at an estimated $1.5 million. ALTERNATIVES: The City Council may instruct staff to not apply for the grant. ATTACHMENTS: None. Page 215 of 215