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HomeMy WebLinkAboutCC_2023_01_24_AgendaPacket CITY OF ATASCADERO CITY COUNCIL AGENDA HYBRID MEETING INFORMATION: In accordance with City Council Resolution No. 2023-001 and the requirements of AB 361, the City Council Meeting will be available via teleconference for those who wish to participate remotely. The City Council meeting will also be held in the City Council Chambers and in-person attendance will be available at that location. HOW TO OBSERVE THE MEETING REMOTELY: To participate remotely, residents can livestream the meeting on Zoom, SLO-SPAN.org, on Spectrum cable Channel 20 in Atascadero, and listen live 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 and on the City’s YouTube Channel. To participate remotely using the Zoom platform please visit https://us02web.zoom.us/webinar/register/WN_ZwJ7a031S3KXauEym9ehaA. HOW TO SUBMIT PUBLIC COMMENT: Individuals who wish to provide public comment in-person may attend the meeting in the City Council Chambers. Individuals who wish to participate remotely may call (669) 900-6833 (Meeting ID: 889 2347 9018) to listen and provide public comment via phone or via the Zoom platform using the link above. If you wish to comment but not via a live platform, please email public comments to cityclerk@atascadero.org. 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. To ensure distribution to the City Council prior to consideration of the agenda, the public is encouraged to submit comments no later than 12:00 p.m. the day of the meeting. Those comments, as well as any comments received after that time, but before the close of the item, will be distributed to the City Council, posted on the City’s website, and will be made part of the official public record of the meeting. 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 will 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/agendas. 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 200 CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, January 24, 2023 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California REGULAR SESSION – CALL TO ORDER: 6:00 P.M. PLEDGE OF ALLEGIANCE: Council Member Dariz ROLL CALL: Mayor Moreno Mayor Pro Tem Funk Council Member Bourbeau Council Member Dariz Council Member Newsom 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. 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 10, 2023 ▪ Recommendation: Council approve the January 10, 2023 Draft City Council Regular Meeting Minutes. [City Clerk] 2. December 2022 Accounts Payable and Payroll ▪ Fiscal Impact: $2,221,466.23 City Council Regular Session: 6:00 P.M. Page 2 of 200 ▪ Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for December 2022. [Administrative Services] 3. Emergency Purchases for January 2023 Storms ▪ Fiscal Impact: $500,000. ▪ Recommendation: Council receive and file report. [Public Works] 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: 1. 2022 California Building and Fire Codes Updates (Continuation) ▪ Fiscal Impact: None. ▪ Recommendation: Council continue the item to February 14, 2023, to allow staff additional time to complete the updates to the Building and Fire Codes. [Community Development and Fire & Emergency Services] C. MANAGEMENT REPORTS: 1. El Camino Real Downtown Infrastructure Enhancement Project Design Public Outreach Kickoff Session ▪ Fiscal Impact: None. ▪ Recommendation: Council provide input and receive information from the public on outreach concepts for the El Camino Real Downtown Infrastructure Enhancement Plan. [Public Works] 2. Fiscal Year 2021-22 Audit ▪ Fiscal Impact: None. ▪ Recommendation: Council review and accept the financial audit for the period ended June 30, 2022. [Administrative Services] D. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their Page 3 of 200 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 Funk 1. Atascadero Basin Ground Water Sustainability Agency (GSA) 2. Design Review Committee 3. Homeless Services Oversight Council 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. Community Action Partnership of San Luis Obispo (CAPSLO) 4. Visit SLO CAL Advisory Committee Council Member Newsom 1. City of Atascadero Finance Committee 2. City / Schools Committee 3. Design Review Committee 4. League of California Cities – Council Liaison 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 ADJOURNMENT Page 4 of 200 **On January 10, 2023, a copy of the Notice of Virtual Meeting was posted at Atascadero City Hall, on the City’s website and social media pages, and was available for public review in the Customer Service Center at that location. CITY OF ATASCADERO CITY COUNCIL DRAFT MINUTES Tuesday, January 10, 2023 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California **VIRTUAL MEETING ONLY** Due to significant and ongoing severe weather conditions including flooding, wind gusts, falling debris, downed trees, landslides, and compromised critical infrastructure as a result of the high winds and substantial rainfall impacting San Luis Obispo County and the City of Atascadero on January 9-10, 2023, this meeting was not physically open to the public and City Council Members and City staff teleconferenced into the meeting. REGULAR SESSION – CALL TO ORDER: 6:00 P.M. Mayor Moreno called the meeting to order at 6:00 p.m. and Council Member Bourbeau led the Pledge of Allegiance. 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 to the Community Redevelopment Agency of Atascadero Session Page 5 of 200 ROLL CALL: Present: BY TELECONFERENCE – Council Members Bourbeau, Dariz, Newsom, Mayor Pro Tem Funk, and Mayor Moreno Absent: None Others Present: BY TELECONFERENCE – Treasurer Sibbach Staff Present: BY TELECONFERENCE – City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Community Development Director Phil Dunsmore, Fire Chief Casey Bryson, Interim Police Chief Jerel Haley, Public Works Director Nick DeBar, City Attorney Brian Pierik, Deputy City Manager/City Clerk Lara Christensen, and Deputy City Manager – IT Luke Knight APPROVAL OF AGENDA: Deputy City Manager/City Clerk Christensen reported that there was a need to add an item to the agenda to ratify the Proclamation of the Existence of an Emergency made by the Director of Emergency Services on January 9, 2023. She gave a brief presentation and answered questions from the Council. MOTION: By Council Member Newsom and seconded by Council Member Bourbeau to determine that an emergency exists and there is a need to add the item to the agenda. Motion passed 5:0 by a roll-call vote. MOTION: By Council Member Bourbeau and seconded by Mayor Pro Tem Funk to: 1. Approve this agenda with the addition (Item #C-2); 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. A. CONSENT CALENDAR: 1. City Council Draft Action Minutes – December 13, 2022 ▪ Recommendation: Council approve the December 13, 2022 Draft City Council Regular Meeting Minutes. [City Clerk] 2. November 2022 Accounts Payable and Payroll ▪ Fiscal Impact: $2,497,042.55. ▪ Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for November 2022. [Administrative Services] 3. September 2022 Investment Report ▪ Fiscal Impact: None. ▪ Recommendation: Council receive and file the City Treasurer’s report for quarter ending September 30, 2022. [City Treasurer] Page 6 of 200 4. Behavioral Health and Wellness Services Contracts for Public Safety Employees ▪ Fiscal Impact: Approximately $30,000 in annually budgeted funds. ▪ Recommendation: Council: 1. Authorize the City Manager to execute a new contract for $30,000 with The Counseling Team International for behavioral health and wellness services for employees of the police and fire departments. 2. Authorize the City Manager to execute an agreement for $14,750 with Lexipol for the CordicoShield Law Enforcement Wellness App for employees of the police and fire departments. [City Manager] 5. AB 361 Requirements for Virtual Meetings ▪ 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] MOTION: By Council Member Dariz and seconded by Mayor Pro Tem Newsom to approve the Consent Calendar Items. (#A-4: Contract Nos. 2023- 001 and 2023-002) (#A-5: Resolution No. 2023-001) 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 and provided information to the City Council on the storm. COMMUNITY FORUM: The following persons spoke by telephone or through the webinar: Geoff Auslen B. PUBLIC HEARINGS: None. C. MANAGEMENT REPORTS: 1. Fiscal Year 2022 Annual Road Report ▪ Fiscal Impact: $5,000 in budgeted General Funds for the distribution of the 2022 Community Road Report. ▪ Recommendation: The Citizens’ Sales Tax Oversight Committee recommends that Council: 1. Approve the Fiscal Year 2022 Annual Road Report. 2. Approve the 2022 Community Road Report. [Public Works and Administrative Services] Administrative Services Director Rangel and Public Works Director DeBar gave the report and answered questions from the Council. Page 7 of 200 PUBLIC COMMENT: The following citizens spoke on this item: Geoff Auslen Mayor Moreno closed the Public Comment period. MOTION: By Mayor Pro Tem Funk and seconded by Council Member Newsom to: 1. Approve the Fiscal Year 2022 Annual Road Report. 2. Approve the 2022 Community Road Report. Motion passed 5:0 by a roll-call vote. 2. Ratify Proclamation of Existence of Local Emergency – additional item added by emergency after agenda posted. ▪ Recommendation: City Council adopt Draft Resolution ratifying proclamation of Existence of Local Emergency by the Director of Emergency Services for the City of Atascadero. [City Manager] Deputy City Manager Christensen gave the report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Geoff Auslen MOTION: By Council Member Bourbeau and seconded by Council Member Newsom to adopt Resolution No. 2023-002 ratifying Proclamation of Existence of Local Emergency by the Director of Emergency Services for the City of Atascadero. Motion passed 5:0 by a roll-call vote. D. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS: Mayor Moreno noted that the only changes to committee assignments for the next two years would be Council Member Dariz taking over as the Visit SLO CAL Advisory Committee member in place of Council Member Newsom and Council Member Newsom taking over as the City of Atascadero Finance Committee representative in place of Council Member Dariz. The following Council Members gave brief update reports on their committees since their last Council meeting: Mayor Moreno 1. SLO Council of Governments (SLOCOG) Mayor Moreno also mentioned attending a Broadband Project group meeting. Mayor Pro Tem Funk 1. Homeless Services Oversight Council Council Member Bourbeau 1. Integrated Waste Management Authority (IWMA) Page 8 of 200 E. INDIVIDUAL DETERMINATION AND / OR ACTION: None F. ADJOURNMENT Mayor Moreno adjourned the meeting at 7:28 p.m. to the Meeting of the Successor Agency. MINUTES PREPARED BY: ______________________________________ Lara K. Christensen City Clerk APPROVED: Page 9 of 200 BaiSgS—!Diair'aai*1.">ilt-TBf•sAtascadero City CouncilStaff Report- Administrative Services DepartmentDecember 2022 Accounts Payable and PayrollRECOMMENDATION:Council approve certified City accounts payable, payroll and payroll vendor checks forDecember 2022.DISCUSSION:Attached for City Council review and approval are the following:PayrollDated 12/8/22 C hecks # 35621-35631Direct DepositsChecks # 35632-35641Direct DepositsDated 12/22/22Accounts PayableDated 12/1/22-12/31/22Checks #172991 -173306& EFTs 4610-4635TOTAL AMOUNT$ 10,935.16369,006.869,865.58332,822.962,221,466.23$ 2,944,096.79FISCAL IMPACT:Total expenditures for all funds is$ 2,944,096.79CERTIFICATION:The undersigned certifies that the attached demands have been released forpayment and that funds are available for these demands.ii- P^ln^P2_^ri/Rangel ^Director of Administrative ServicesATTACHMENT:December 2022 Eden Warrant Register in the amount of$ 2,221,466.23ITEM NUMBER: A-2 DATE: 01/24/23 Page 10 of 200 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2022 172991 12/01/2022 ANTHEM BLUE CROSS HEALTH 213,734.42Payroll Vendor Payment 172992 12/01/2022 BENEFIT COORDINATORS CORP 9,406.20Payroll Vendor Payment 172993 12/01/2022 LINCOLN NATIONAL LIFE INS CO 1,937.77Payroll Vendor Payment 172994 12/01/2022 MEDICAL EYE SERVICES 1,802.71Payroll Vendor Payment 172995 12/02/2022 13 STARS MEDIA 280.78Accounts Payable Check 172996 12/02/2022 AGROMIN HORTICULTURAL PRODUCTS 22,429.69Accounts Payable Check 172997 12/02/2022 ALL SIGNS AND GRAPHICS, INC. 478.50Accounts Payable Check 172998 12/02/2022 ALLIANT INSURANCE SERVICES INC 182.00Accounts Payable Check 172999 12/02/2022 AMERICAN WEST TIRE & AUTO INC 3,385.99Accounts Payable Check 173000 12/02/2022 ANTECH DIAGNOSTICS 52.77Accounts Payable Check 173001 12/02/2022 AT&T 286.51Accounts Payable Check 173002 12/02/2022 AT&T 717.49Accounts Payable Check 173003 12/02/2022 AVILA TRAFFIC SAFETY 472.23Accounts Payable Check 173004 12/02/2022 BARTEL ASSOCIATES, LLC 1,850.00Accounts Payable Check 173005 12/02/2022 BASSETT'S CRICKET RANCH,INC. 215.93Accounts Payable Check 173006 12/02/2022 BELL'S PLUMBING REPAIR, INC. 4,787.00Accounts Payable Check 173007 12/02/2022 KEITH R. BERGHER 855.00Accounts Payable Check 173008 12/02/2022 BERRY MAN, INC. 721.50Accounts Payable Check 173009 12/02/2022 BRANCH SMITH PROPERTIES 374.00Accounts Payable Check 173010 12/02/2022 SARAH B. CARDINALI 72.00Accounts Payable Check 173011 12/02/2022 CARQUEST OF ATASCADERO 639.61Accounts Payable Check 173012 12/02/2022 CHARTER COMMUNICATIONS 229.97Accounts Payable Check 173013 12/02/2022 LARA CHRISTENSEN 402.50Accounts Payable Check 173014 12/02/2022 COLUMBUS ZOO AND AQUARIUM 233.27Accounts Payable Check 173015 12/02/2022 CONSOR NORTH AMERICA, INC. 16,257.03Accounts Payable Check 173016 12/02/2022 COUNTY OF SAN LUIS OBISPO 909.00Accounts Payable Check 173017 12/02/2022 CRISP IMAGING 404.55Accounts Payable Check 173018 12/02/2022 DAN BIDDLE PEST CONTROL SERVIC 135.00Accounts Payable Check 173019 12/02/2022 SHARON J. DAVIS 409.50Accounts Payable Check 173020 12/02/2022 NICHOLAS DEBAR 300.00Accounts Payable Check 173021 12/02/2022 DRIVE CUSTOMS 653.63Accounts Payable Check 173022 12/02/2022 PHILIP DUNSMORE 300.00Accounts Payable Check 173023 12/02/2022 EL CAMINO VETERINARY HOSP 3,951.49Accounts Payable Check 173024 12/02/2022 ESCUELA DEL RIO 1,200.00Accounts Payable Check 173025 12/02/2022 EXECUTIVE JANITORIAL 750.00Accounts Payable Check 173026 12/02/2022 FERRELL'S AUTO REPAIR 691.87Accounts Payable Check 173027 12/02/2022 FGL ENVIRONMENTAL 267.00Accounts Payable Check 173028 12/02/2022 FILIPPIN ENGINEERING, INC. 10,352.50Accounts Payable Check 173029 12/02/2022 FITNESS EDGE EXERCISE EQUIP. 63.06Accounts Payable Check 173030 12/02/2022 GAS COMPANY 2,684.73Accounts Payable Check 173031 12/02/2022 ROBERT GOODMAN 10,000.00Accounts Payable Check 173032 12/02/2022 KELLIE K. HART 525.00Accounts Payable Check 173033 12/02/2022 JK'S UNLIMITED, INC. 4,793.50Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/23 ATTACHMENT: 1 Page 11 of 200 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2022 173034 12/02/2022 JOE A. GONSALVES & SON 3,000.00Accounts Payable Check 173035 12/02/2022 LEE WILSON ELECTRIC CO. INC 5,028.43Accounts Payable Check 173036 12/02/2022 LIN LI 144.00Accounts Payable Check 173037 12/02/2022 LINDE GAS & EQUIPMENT INC. 63.04Accounts Payable Check 173038 12/02/2022 CRAIG C. LOWRIE 150.00Accounts Payable Check 173039 12/02/2022 HONNECKER MANASES RUIZ JIMENEZ 106.00Accounts Payable Check 173040 12/02/2022 MARBORG INDUSTRIES 346.58Accounts Payable Check 173041 12/02/2022 CRAIG MARTINEAU 350.00Accounts Payable Check 173042 12/02/2022 WADE MCKINNEY 486.51Accounts Payable Check 173043 12/02/2022 SAMUEL HENRY MCMILLAN, JR. 200.00Accounts Payable Check 173044 12/02/2022 MICHAEL K. NUNLEY & ASSC, INC. 2,140.58Accounts Payable Check 173045 12/02/2022 MID-COAST FIRE PROTECTION, INC 273.94Accounts Payable Check 173046 12/02/2022 MIG 22,670.00Accounts Payable Check 173047 12/02/2022 MINER'S ACE HARDWARE 395.76Accounts Payable Check 173048 12/02/2022 MISSION UNIFORM SERVICE 339.23Accounts Payable Check 173049 12/02/2022 MIWALL CORPORATION 3,593.07Accounts Payable Check 173050 12/02/2022 MP ANNEX, LLC 138,909.13Accounts Payable Check 173051 12/02/2022 DAVE MUEHLHAUSEN 1,898.99Accounts Payable Check 173052 12/02/2022 NEW TIMES 1,267.00Accounts Payable Check 173053 12/02/2022 OFFICE DEPOT INC. 71.73Accounts Payable Check 173054 12/02/2022 PACIFIC GAS AND ELECTRIC 2,301.84Accounts Payable Check 173055 12/02/2022 PERRY'S PARCEL & GIFT 15.51Accounts Payable Check 173056 12/02/2022 PROCARE JANITORIAL SUPPLY,INC. 1,125.85Accounts Payable Check 173057 12/02/2022 RAINSCAPE, A LANDSCAPE SVC CO. 350.00Accounts Payable Check 173058 12/02/2022 JERI RANGEL 300.00Accounts Payable Check 173059 12/02/2022 READYREFRESH BY NESTLE 128.38Accounts Payable Check 173060 12/02/2022 RECOGNITION WORKS 4.02Accounts Payable Check 173061 12/02/2022 RICK ENGINEERING COMPANY 12,628.50Accounts Payable Check 173062 12/02/2022 RACHELLE RICKARD 300.00Accounts Payable Check 173063 12/02/2022 BRIAN S. RICKS 100.00Accounts Payable Check 173064 12/02/2022 RODMAN REPAIR & FABRICATION 375.00Accounts Payable Check 173065 12/02/2022 SOUTH COAST EMERGENCY VEH SVC 1,066.58Accounts Payable Check 173066 12/02/2022 SP MAINTENANCE SERVICES, INC. 1,100.00Accounts Payable Check 173067 12/02/2022 STANLEY CONVERGENT SECURITY 1,063.31Accounts Payable Check 173068 12/02/2022 STRYKER SALES CORPORATION 4,000.00Accounts Payable Check 173069 12/02/2022 SUNBELT RENTALS, INC. 1,209.70Accounts Payable Check 173070 12/02/2022 RONALD R. TARICA 108.00Accounts Payable Check 173071 12/02/2022 MADELINE M. TAYLOR 81.00Accounts Payable Check 173072 12/02/2022 CHRISTOPHER DANIEL THOMAS 200.00Accounts Payable Check 173073 12/02/2022 TYLER TECHNOLOGIES, INC. 20,522.30Accounts Payable Check 173074 12/02/2022 U.S. BANK 3,088.00Accounts Payable Check 173075 12/02/2022 UNIVAR SOLUTIONS USA, INC. 7,018.56Accounts Payable Check 173076 12/02/2022 THOMAS F. VELASQUEZ 100.00Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/23 ATTACHMENT: 1 Page 12 of 200 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2022 173077 12/02/2022 VERIZON WIRELESS 1,217.77Accounts Payable Check 173078 12/02/2022 VINO VICE, INC. 881.50Accounts Payable Check 173079 12/02/2022 VISIT SLO CAL 6,800.00Accounts Payable Check 173080 12/02/2022 VITAL RECORDS CONTROL 184.09Accounts Payable Check 173081 12/02/2022 WALLACE GROUP 16,710.75Accounts Payable Check 173082 12/02/2022 WEX BANK - 76 UNIVERSL 14,174.86Accounts Payable Check 173083 12/02/2022 WEX BANK - WEX FLEET UNIVERSAL 10,332.02Accounts Payable Check 173084 12/02/2022 KAREN B. WYKE 618.30Accounts Payable Check 173085 12/02/2022 YOUTH EVOLUTION SOCCER 921.60Accounts Payable Check 173086 12/02/2022 ZOOM IMAGING SOLUTIONS, INC. 1,139.54Accounts Payable Check 4610 12/08/2022 ANTHEM BLUE CROSS HSA 8,305.39Payroll Vendor Payment 173087 12/08/2022 ATASCADERO MID MGRS ORG UNION 40.00Payroll Vendor Payment 173088 12/08/2022 ATASCADERO POLICE OFFICERS 2,141.50Payroll Vendor Payment 173089 12/08/2022 ATASCADERO PROF. FIREFIGHTERS 1,151.80Payroll Vendor Payment 173090 12/08/2022 CA FIREFIGHTERS BENEFIT TRUST 1,800.00Payroll Vendor Payment 173091 12/08/2022 MASS MUTUAL WORKPLACE SOLUTION 7,352.69Payroll Vendor Payment 173092 12/08/2022 MISSIONSQUARE 6,671.82Payroll Vendor Payment 173093 12/08/2022 NATIONWIDE RETIREMENT SOLUTION 486.02Payroll Vendor Payment 173094 12/08/2022 NAVIA BENEFIT SOLUTIONS 1,674.10Payroll Vendor Payment 173095 12/08/2022 SEIU LOCAL 620 767.05Payroll Vendor Payment 4611 12/09/2022 STATE DISBURSEMENT UNIT 1,068.60Payroll Vendor Payment 4612 12/09/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 20,272.68Payroll Vendor Payment 4613 12/09/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 33,583.21Payroll Vendor Payment 4614 12/09/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,231.71Payroll Vendor Payment 4615 12/09/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,750.54Payroll Vendor Payment 4616 12/09/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 5,005.31Payroll Vendor Payment 4617 12/09/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 8,738.70Payroll Vendor Payment 4618 12/09/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 12,582.79Payroll Vendor Payment 4619 12/09/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 17,617.75Payroll Vendor Payment 4620 12/13/2022 RABOBANK, N.A. 75,291.31Payroll Vendor Payment 4621 12/13/2022 EMPLOYMENT DEV DEPARTMENT 24,429.91Payroll Vendor Payment 4622 12/13/2022 EMPLOYMENT DEV. DEPARTMENT 2,898.26Payroll Vendor Payment 173096 12/16/2022 13 STARS MEDIA 1,919.26Accounts Payable Check 173097 12/16/2022 2 MEXICANS, LLC 5,733.50Accounts Payable Check 173098 12/16/2022 A.P.S. AUTOMOTIVE 460.50Accounts Payable Check 173099 12/16/2022 JAKE ABBOTT 62.31Accounts Payable Check 173100 12/16/2022 ACCESS PUBLISHING 359.00Accounts Payable Check 173101 12/16/2022 ADAMSKI,MOROSKI,MADDEN, 906.50Accounts Payable Check 173102 12/16/2022 ADDICTION MEDICINE CONSULTANTS 660.00Accounts Payable Check 173103 12/16/2022 AGM CALIFORNIA, INC. 1,026.00Accounts Payable Check 173104 12/16/2022 AKA ENGINEERING COMPANY 21,052.30Accounts Payable Check 173105 12/16/2022 ALL SIGNS AND GRAPHICS, INC. 282.24Accounts Payable Check 173106 12/16/2022 AMERICAN WEST TIRE & AUTO INC 1,103.53Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/23 ATTACHMENT: 1 Page 13 of 200 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2022 173107 12/16/2022 APPLIED TECHNOLOGY GROUP, INC. 41,690.23Accounts Payable Check 173109 12/16/2022 AT&T 1,296.36Accounts Payable Check 173111 12/16/2022 ATASCADERO MUTUAL WATER CO. 10,023.80Accounts Payable Check 173112 12/16/2022 AVILA TRAFFIC SAFETY 51.11Accounts Payable Check 173113 12/16/2022 TERRIE BANISH 51.39Accounts Payable Check 173114 12/16/2022 BANK OF NEW YORK MELLON 2,420.00Accounts Payable Check 173115 12/16/2022 KEITH R. BERGHER 510.00Accounts Payable Check 173116 12/16/2022 BOUND TREE MEDICAL, LLC 148.99Accounts Payable Check 173117 12/16/2022 BRENDLER JANITORIAL SERVICE 1,150.00Accounts Payable Check 173118 12/16/2022 CARQUEST OF ATASCADERO 88.93Accounts Payable Check 173119 12/16/2022 CG VISUAL SOLUTIONS CORP. 457.52Accounts Payable Check 173120 12/16/2022 CHARROS OF ROCK, LLC 2,400.00Accounts Payable Check 173122 12/16/2022 CHARTER COMMUNICATIONS 10,593.87Accounts Payable Check 173123 12/16/2022 LARA CHRISTENSEN 31.37Accounts Payable Check 173124 12/16/2022 CLEVER CONCEPTS, INC. 47.95Accounts Payable Check 173125 12/16/2022 COAST MECHANICAL 989.56Accounts Payable Check 173126 12/16/2022 COASTAL COPY, INC. 314.51Accounts Payable Check 173127 12/16/2022 COLOR CRAFT PRINTING 796.15Accounts Payable Check 173128 12/16/2022 CRISP IMAGING 186.14Accounts Payable Check 173129 12/16/2022 CRYSTAL SPRINGS WATER 20.00Accounts Payable Check 173130 12/16/2022 CULLIGAN SANTA MARIA 162.17Accounts Payable Check 173131 12/16/2022 CULLIGAN/CENTRAL COAST WTR TRT 70.00Accounts Payable Check 173132 12/16/2022 CUMMINS, INC. 2,926.83Accounts Payable Check 173133 12/16/2022 DAVE BANG ASSC., INC. 2,088.14Accounts Payable Check 173134 12/16/2022 JOE DEBRUIN, PH.D. 540.00Accounts Payable Check 173135 12/16/2022 DELTA LIQUID ENERGY 1,267.14Accounts Payable Check 173136 12/16/2022 DESTINATION TRAVEL NETWORK 100.00Accounts Payable Check 173137 12/16/2022 ENGEL AND GRAY, INC. 31,033.45Accounts Payable Check 173138 12/16/2022 ESCROW CLEANING SERVICE 450.00Accounts Payable Check 173139 12/16/2022 FERRAVANTI GRADING & PAVING 2,500.00Accounts Payable Check 173140 12/16/2022 FGL ENVIRONMENTAL 707.00Accounts Payable Check 173141 12/16/2022 FILIPPIN ENGINEERING, INC. 467.50Accounts Payable Check 173142 12/16/2022 GAS COMPANY 16.27Accounts Payable Check 173143 12/16/2022 KELLY GLEASON 48.75Accounts Payable Check 173144 12/16/2022 GOLDEN STATE COPIER & MAILING 992.00Accounts Payable Check 173145 12/16/2022 GREAT PLAINS ZOO & DELBRIDGE M 82.69Accounts Payable Check 173146 12/16/2022 HART IMPRESSIONS PRINTING 280.58Accounts Payable Check 173147 12/16/2022 HINDERLITER, DE LLAMAS 4,327.57Accounts Payable Check 173148 12/16/2022 HOME DEPOT CREDIT SERVICES 3,300.47Accounts Payable Check 173149 12/16/2022 INTEGRATED TACTICAL CONCEPTS 1,700.00Accounts Payable Check 173150 12/16/2022 JIFFY LUBE 101.15Accounts Payable Check 173151 12/16/2022 JK'S UNLIMITED, INC. 727.60Accounts Payable Check 173152 12/16/2022 JOANN HEAD LAND SURVEYING 7,416.70Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/23 ATTACHMENT: 1 Page 14 of 200 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2022 173153 12/16/2022 KPRL 1230 AM 495.00Accounts Payable Check 173154 12/16/2022 KRITZ EXCAVATING & TRUCKNG INC 766.77Accounts Payable Check 173155 12/16/2022 COLETTE LAYTON 498.00Accounts Payable Check 173156 12/16/2022 LEE WILSON ELECTRIC CO. INC 12,389.00Accounts Payable Check 173157 12/16/2022 LIFE ASSIST, INC. 233.89Accounts Payable Check 173158 12/16/2022 CRAIG C. LOWRIE 225.00Accounts Payable Check 173159 12/16/2022 EBONY LUCIEN 125.00Accounts Payable Check 173160 12/16/2022 ANDREW LUERA 498.00Accounts Payable Check 173161 12/16/2022 MARBORG INDUSTRIES 73.05Accounts Payable Check 173162 12/16/2022 MARIACHI MEXICANISIMO 1,000.00Accounts Payable Check 173163 12/16/2022 SAMUEL HENRY MCMILLAN, JR. 275.00Accounts Payable Check 173164 12/16/2022 MEDINA LIGHT SHOW DESIGNS 2,650.00Accounts Payable Check 173165 12/16/2022 MINER'S ACE HARDWARE 122.87Accounts Payable Check 173166 12/16/2022 HECTOR MIRANDA 107.74Accounts Payable Check 173167 12/16/2022 MATTHEW J. MIRANDA 299.00Accounts Payable Check 173168 12/16/2022 MISSION UNIFORM SERVICE 453.72Accounts Payable Check 173169 12/16/2022 MNS ENGINEERS, INC. 6,582.50Accounts Payable Check 173170 12/16/2022 MV TRANSPORTATION, INC. 12,054.59Accounts Payable Check 173171 12/16/2022 NEW TIMES 383.00Accounts Payable Check 173172 12/16/2022 NIELSEN,MERKSAMER,PARRINELLO, 3,614.00Accounts Payable Check 173173 12/16/2022 NORTH COUNTY BACKFLOW 2,400.00Accounts Payable Check 173174 12/16/2022 OASIS EQUIPMENT RENTAL 773.30Accounts Payable Check 173175 12/16/2022 OCCUPATIONAL HEALTH CTRS OF CA 584.00Accounts Payable Check 173178 12/16/2022 PACIFIC GAS AND ELECTRIC 61,010.91Accounts Payable Check 173179 12/16/2022 RICARDO PAZ 325.00Accounts Payable Check 173180 12/16/2022 PC MECHANICAL, INC. 4,507.53Accounts Payable Check 173181 12/16/2022 PEAKWIFI, LLC 650.00Accounts Payable Check 173182 12/16/2022 PERRY'S PARCEL & GIFT 75.00Accounts Payable Check 173183 12/16/2022 PROCARE JANITORIAL SUPPLY,INC. 412.46Accounts Payable Check 173184 12/16/2022 PYRO SPECTACULARS, INC. 2,500.00Accounts Payable Check 173185 12/16/2022 RAINSCAPE, A LANDSCAPE SVC CO. 10,372.00Accounts Payable Check 173186 12/16/2022 JERI RANGEL 40.50Accounts Payable Check 173187 12/16/2022 READYREFRESH BY NESTLE 341.55Accounts Payable Check 173188 12/16/2022 BRIAN S. RICKS 125.00Accounts Payable Check 173189 12/16/2022 SAN DIEGO POLICE EQUIPMENT CO 858.04Accounts Payable Check 173190 12/16/2022 SAN LUIS POWERHOUSE, INC. 185.00Accounts Payable Check 173191 12/16/2022 SANTA MARIA SUN, LLC 274.00Accounts Payable Check 173192 12/16/2022 SITEONE LANDSCAPE SUPPLY, LLC 2,143.18Accounts Payable Check 173193 12/16/2022 SLO COUNTY HEALTH AGENCY 184,027.00Accounts Payable Check 173194 12/16/2022 SLOCOG 5,462.00Accounts Payable Check 173195 12/16/2022 SOUTH COAST EMERGENCY VEH SVC 5,327.76Accounts Payable Check 173196 12/16/2022 SOUZA CONSTRUCTION, INC. 121,614.66Accounts Payable Check 173197 12/16/2022 SPEAKWRITE, LLC. 402.28Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/23 ATTACHMENT: 1 Page 15 of 200 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2022 173198 12/16/2022 CONNER M. SPEARS 6,300.00Accounts Payable Check 173199 12/16/2022 SPECIALIZED EQUIPMENT REPAIR 2,822.77Accounts Payable Check 173200 12/16/2022 BRUCE ST. JOHN 32.50Accounts Payable Check 173201 12/16/2022 STAPLES CREDIT PLAN 140.83Accounts Payable Check 173202 12/16/2022 STATE WATER RES CONTROL BOARD 6,727.00Accounts Payable Check 173203 12/16/2022 SUNLIGHT JANITORIAL, INC. 4,850.00Accounts Payable Check 173204 12/16/2022 TARGET SOLUTIONS LEARNING, LLC 15.56Accounts Payable Check 173205 12/16/2022 TELEWORX, LLC 56,425.00Accounts Payable Check 173206 12/16/2022 TEMPLETON UNIFORMS, LLC 185.63Accounts Payable Check 173207 12/16/2022 CHRISTOPHER DANIEL THOMAS 100.00Accounts Payable Check 173208 12/16/2022 THOMSON REUTERS - WEST 180.35Accounts Payable Check 173213 12/16/2022 U.S. BANK 29,688.70Accounts Payable Check 173214 12/16/2022 U.S. POSTAL SERVICE 3,000.00Accounts Payable Check 173215 12/16/2022 ULTREX BUSINESS PRODUCTS 35.73Accounts Payable Check 173216 12/16/2022 VERDIN 17,786.14Accounts Payable Check 173217 12/16/2022 VERIZON WIRELESS 1,912.73Accounts Payable Check 173218 12/16/2022 VINO VICE, INC. 172.00Accounts Payable Check 173219 12/16/2022 WALLACE GROUP 96,672.44Accounts Payable Check 4623 12/22/2022 ANTHEM BLUE CROSS HSA 7,830.35Payroll Vendor Payment 173220 12/22/2022 ATASCADERO MID MGRS ORG UNION 40.00Payroll Vendor Payment 173221 12/22/2022 ATASCADERO POLICE OFFICERS 2,078.00Payroll Vendor Payment 173222 12/22/2022 ATASCADERO PROF. FIREFIGHTERS 1,151.80Payroll Vendor Payment 173223 12/22/2022 CA FIREFIGHTERS BENEFIT TRUST 1,800.00Payroll Vendor Payment 173224 12/22/2022 MASS MUTUAL WORKPLACE SOLUTION 7,302.82Payroll Vendor Payment 173225 12/22/2022 MISSIONSQUARE 6,594.64Payroll Vendor Payment 173226 12/22/2022 NATIONWIDE RETIREMENT SOLUTION 694.35Payroll Vendor Payment 173227 12/22/2022 NAVIA BENEFIT SOLUTIONS 1,673.78Payroll Vendor Payment 173228 12/22/2022 SEIU LOCAL 620 767.05Payroll Vendor Payment 4624 12/23/2022 STATE DISBURSEMENT UNIT 69.92Payroll Vendor Payment 4625 12/23/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 20,350.53Payroll Vendor Payment 4626 12/23/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 33,149.78Payroll Vendor Payment 4627 12/23/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,253.04Payroll Vendor Payment 4628 12/23/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,750.54Payroll Vendor Payment 4629 12/23/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 5,005.31Payroll Vendor Payment 4630 12/23/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 9,195.53Payroll Vendor Payment 4631 12/23/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 12,482.96Payroll Vendor Payment 4632 12/23/2022 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 17,743.38Payroll Vendor Payment 4633 12/27/2022 RABOBANK, N.A. 65,138.49Payroll Vendor Payment 4634 12/27/2022 EMPLOYMENT DEV DEPARTMENT 20,421.34Payroll Vendor Payment 4635 12/27/2022 EMPLOYMENT DEV. DEPARTMENT 2,756.35Payroll Vendor Payment 173229 12/30/2022 13 STARS MEDIA 888.00Accounts Payable Check 173230 12/30/2022 ADAMSKI,MOROSKI,MADDEN, 2,072.00Accounts Payable Check 173231 12/30/2022 AGP VIDEO, INC. 2,350.00Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/23 ATTACHMENT: 1 Page 16 of 200 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2022 173232 12/30/2022 AIR-RITE HEATING & COOLING 250.00Accounts Payable Check 173233 12/30/2022 AMERICAN WEST TIRE & AUTO INC 1,775.96Accounts Payable Check 173234 12/30/2022 MICHAEL J. ARRIOLA 1,700.00Accounts Payable Check 173235 12/30/2022 AT&T 26.24Accounts Payable Check 173236 12/30/2022 AT&T 785.83Accounts Payable Check 173237 12/30/2022 ATASCADERO HAY & FEED 1,279.65Accounts Payable Check 173238 12/30/2022 TERRIE BANISH 344.38Accounts Payable Check 173239 12/30/2022 BASSETT'S CRICKET RANCH,INC. 674.42Accounts Payable Check 173240 12/30/2022 BELL'S PLUMBING REPAIR, INC. 195.00Accounts Payable Check 173241 12/30/2022 BERRY MAN, INC. 1,386.10Accounts Payable Check 173242 12/30/2022 BOUND TREE MEDICAL, LLC 645.70Accounts Payable Check 173243 12/30/2022 BROOKFIELD ZOO 463.44Accounts Payable Check 173244 12/30/2022 BURKE,WILLIAMS, & SORENSON LLP 27,293.70Accounts Payable Check 173245 12/30/2022 CARQUEST OF ATASCADERO 42.80Accounts Payable Check 173246 12/30/2022 CASEY PRINTING, INC. 7,094.16Accounts Payable Check 173247 12/30/2022 CHARTER COMMUNICATIONS 129.98Accounts Payable Check 173248 12/30/2022 LARA CHRISTENSEN 101.46Accounts Payable Check 173249 12/30/2022 CITY OF ATASCADERO 274.00Accounts Payable Check 173250 12/30/2022 CLASSIC COACH WERKS 3,309.21Accounts Payable Check 173251 12/30/2022 COLOR CRAFT PRINTING 456.96Accounts Payable Check 173252 12/30/2022 CONSOR NORTH AMERICA, INC. 3,609.23Accounts Payable Check 173253 12/30/2022 CUESTA POLYGRAPH & INVEST. LLC 2,450.00Accounts Payable Check 173254 12/30/2022 COLIN W. DEAN 1,900.00Accounts Payable Check 173255 12/30/2022 DEPARTMENT OF JUSTICE 360.00Accounts Payable Check 173256 12/30/2022 DESTINATION TRAVEL NETWORK 200.00Accounts Payable Check 173257 12/30/2022 DOOMSDAY SKATE, LLC 483.00Accounts Payable Check 173258 12/30/2022 CARLOS D. DURAN 1,800.00Accounts Payable Check 173259 12/30/2022 ESCUELA DEL RIO 960.00Accounts Payable Check 173260 12/30/2022 EXECUTIVE JANITORIAL 750.00Accounts Payable Check 173261 12/30/2022 FENCE FACTORY ATASCADERO 585.00Accounts Payable Check 173262 12/30/2022 GAS COMPANY 6,831.50Accounts Payable Check 173263 12/30/2022 HANSEN BRO'S CUSTOM FARMING 17,296.44Accounts Payable Check 173264 12/30/2022 HART IMPRESSIONS PRINTING 591.83Accounts Payable Check 173265 12/30/2022 KELLIE K. HART 420.00Accounts Payable Check 173266 12/30/2022 HERC RENTALS, INC. 2,970.16Accounts Payable Check 173267 12/30/2022 HIGH COUNTRY OUTDOOR, INC. 450.00Accounts Payable Check 173268 12/30/2022 HINDERLITER, DE LLAMAS 1,611.11Accounts Payable Check 173269 12/30/2022 HOME DEPOT CREDIT SERVICES 1,782.37Accounts Payable Check 173270 12/30/2022 IMAGE TREND, INC. 3,500.00Accounts Payable Check 173271 12/30/2022 JOE A. GONSALVES & SON 3,000.00Accounts Payable Check 173272 12/30/2022 LIN LI 144.00Accounts Payable Check 173273 12/30/2022 LIFE ASSIST, INC. 675.80Accounts Payable Check 173274 12/30/2022 MARBORG INDUSTRIES 2,232.63Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/23 ATTACHMENT: 1 Page 17 of 200 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2022 173275 12/30/2022 MINER'S ACE HARDWARE 52.99Accounts Payable Check 173276 12/30/2022 MATTHEW J. MIRANDA 199.00Accounts Payable Check 173277 12/30/2022 MISSION UNIFORM SERVICE 49.80Accounts Payable Check 173278 12/30/2022 MOBILE SMALL ENGINE REPAIR 800.00Accounts Payable Check 173279 12/30/2022 HEATHER MORENO 289.34Accounts Payable Check 173280 12/30/2022 PAUL NETZ 498.00Accounts Payable Check 173281 12/30/2022 NEW TIMES 1,267.00Accounts Payable Check 173282 12/30/2022 PACIFIC CNTRL COAST HLTH CTRS 746.16Accounts Payable Check 173283 12/30/2022 PACIFIC GAS AND ELECTRIC 2,139.96Accounts Payable Check 173284 12/30/2022 PREMIER AG PRODUCTS & SERVICES 3,504.44Accounts Payable Check 173285 12/30/2022 PROCARE JANITORIAL SUPPLY,INC. 559.42Accounts Payable Check 173286 12/30/2022 PROFORCE LAW ENFORCEMENT 3,355.22Accounts Payable Check 173287 12/30/2022 GERALD D. PURIFY JR. 1,200.00Accounts Payable Check 173288 12/30/2022 QUADIENT, INC. 124.46Accounts Payable Check 173289 12/30/2022 READYREFRESH BY NESTLE 109.45Accounts Payable Check 173290 12/30/2022 RECOGNITION WORKS 36.16Accounts Payable Check 173291 12/30/2022 RICK ENGINEERING COMPANY 17,030.50Accounts Payable Check 173292 12/30/2022 SAN LUIS POWERHOUSE, INC. 925.00Accounts Payable Check 173293 12/30/2022 SANTA MARIA TIRE, INC. 5,579.07Accounts Payable Check 173294 12/30/2022 ENRIQUE M. SANTOS 3,400.00Accounts Payable Check 173295 12/30/2022 THE SHERWIN-WILLIAMS COMPANY 20.00Accounts Payable Check 173296 12/30/2022 MARY P. SMITH 1,412.25Accounts Payable Check 173297 12/30/2022 JENNIFER L. SPOTTEN 358.80Accounts Payable Check 173298 12/30/2022 STANLEY CONVERGENT SECURITY 1,063.76Accounts Payable Check 173299 12/30/2022 SUPERION, LLC 57,017.73Accounts Payable Check 173300 12/30/2022 KARL O. TOERGE 168.00Accounts Payable Check 173301 12/30/2022 VERIZON WIRELESS 1,392.90Accounts Payable Check 173302 12/30/2022 VINO VICE, INC. 236.50Accounts Payable Check 173303 12/30/2022 VITAL RECORDS CONTROL 184.09Accounts Payable Check 173304 12/30/2022 WALLACE GROUP 94,899.89Accounts Payable Check 173305 12/30/2022 ZOO MED LABORATORIES, INC. 1,365.89Accounts Payable Check 173306 12/30/2022 ZOOM IMAGING SOLUTIONS, INC. 986.91Accounts Payable Check $2,221,466.23 ITEM NUMBER: A-2 DATE: 01/24/23 ATTACHMENT: 1 Page 18 of 200 ITEM NUMBER: A-3 DATE: 01/24/23 Atascadero City Council Staff Report - Public Works Department Emergency Purchases for January 2023 Storms RECOMMENDATION: Council receive and file report regarding emergency purchases for the January 2023 storms. DISCUSSION: Background: Atascadero has experienced unusually high precipitation since the start of 2023. Atascadero Mutual Water Company (AMWC) reported 15 inches of rain since the start of the year through January 17, 2023 and 25 inches for the season (since July 1, 2022) at the water treatment facility on Sycamore Lane. There have been only two years with more rain for the entire month of January since AMWC began collecting this data in 1915 (16.6 inches in 1969 and 15.5 inches in 1916). AMWC rainfall amounts are typically less than other parts of Atascadero; especially on the west side in the Santa Lucia Range, where rainfall totals are commonly two or three times AMWC recorded amounts. There have also been several storms with very heavy rainfall and high wind events this year. The storm of January 9-10, 2023 delivered 7 to 10 inches of rain and caused major flooding in Atascadero. Creeks swelled and storm drain facilities could not accommodate the runoff, or became plugged from sediment and debris in the runoff stream. The water level of Atascadero Creek infringed on bridge crossings and overtopped several, including San Gabriel Road. Many roads were flooded and resulted in temporary road closures and were left with heavy sediment and debris after the water receded. There were a number of roads that subsided from debris clogged culverts or had slope subsidence from waterlogged soils. Paloma Creek flooded Paloma Park with approximately two feet of water and left heavy mud, debris, flooded restrooms and buildings, and damaged electrical and irrigation facilities. Water damaged occurred at City Hall, Colony Park Community Center, Pavilion, Police Station, and both Fire Stations. Several sanitary sewers were submerged by flood waters and the water reclamation facility and lift stations struggled to keep up with the inflow and infiltration. Private property also sustained flooding, erosion, and other major damage from the storm. Page 19 of 200 ITEM NUMBER: A-3 DATE: 01/24/23 Analysis: City staff was extremely busy responding to dispatch calls, resolving issues, and evaluating infrastructure during and after the January 9-10, 2023 storm event. During and after the storm, residents were advised to shelter in place, and an emergency declaration was enacted by the City the morning of January 9. Due to the high volume of damage and clean-up needed during and after the storm, a handful of independent contractors are being utilized to assist the City with emergency protective measures, storm repairs, debris removal, and other clean-up efforts. In general, Public Works staff focused on the core areas of El Camino Real and central corridors, while contractors were utilized in other areas of the City. The following is a summary of the contractors used by the City in these efforts and work assignments. Raminha Construction Estimated Cost: $ 150,000 Culvert Repair and Replacement 8455 San Rafael Rd 36" CMP Culvert Failure - Replacement 8290 Chandler Ln 18" CMP Culvert Failure - Replacement 8775 Sierra Vista Rd 18" CMP Culvert Failure - Replacement Kirk Construction Estimated Cost: $ 150,000 NW and SE Area – Subsidence Cleanups and Roadway Clearance 13900 Santa Ana Rd Roadway Clearance 9600 Corona Rd Roadway Clearance San Fernando Road Roadway Clearance Cebada Road - Full length Roadway Clearance Corriente Road - Santa Ana to San Fernando Roadway Clearance Monterey Road - Ramona Road to San Fernando Roadway Clearance Castano Ave (7525) Roadway Clearance Cortez Ave - Maleza Ave to north end Roadway Clearance Maleza Ave - Cortez Ave to Castano Ave Roadway Clearance 4505 Traffic Way Roadway Clearance Culvert Clearing 14450 Santa Ana CMP Inlet Clearance 10455 Escondido CMP Inlet Clearance Porter Construction Estimated Cost: $ 75,000 NW Area – Subsidence Cleanups 8705 Santa Cruz Road Roadway Clearance 10300-10600 San Marcos Rd Roadway Clearance 11000 San Marcos Rd Roadway Clearance 13850 Los Altos Rd Roadway Clearance 10630 & 10645 Rialito Rd Roadway Clearance 9560 Laurel Rd Roadway Clearance Cenegal Road west of Laurel Road Roadway Clearance Llano Road Roadway Clearance Page 20 of 200 ITEM NUMBER: A-3 DATE: 01/24/23 Santa Lucia Road (Santa Ana to Laurel) Roadway Clearance Monterey Road - Ramona Road to San Fernando Roadway Clearance 4505 Traffic Way Roadway Clearance Dulzura Road @ San Jacinto Roadway Clearance Culvert Clearing 6000 Llano Road CMP Inlet Clearance KW Construction Estimated Cost: $ 40,000 Central Area – Subsidence Cleanups and Roadway Clearance San Andres Ave Bridge Sewer main infrastructure protection Navarette Road Roadway Clearance San Andres Ave Roadway Clearance Hermosa Road Roadway Clearance Culvert Clearing Tecorida Road - 8200 San Andres Ave CMP Inlet Clearance Azucena Road (Multiple locations) CMP Inlet Clearance 8360 San Diego Road CMP Inlet Clearance SCI Construction Estimated Cost: $ 10,000 Culvert Clearing (Jetting/Vac) Azucena Road CMP Inlet Clearance Orosco Roofing Estimated Cost: $ 15,000 Roof Repairs City Hall East and South Roof City Hall West Roof Central Coast Casualty Restoration Estimated Cost: $ 10,000 Water Damage and Cleanup City Hall Fourth Floor City Hall Third Floor City Hall Second Floor Sam’s Tree 805 Inc Estimated Cost: $ 50,000 Tree Cutting and Cleanup Lomitas Avenue Medium oak tree in roadway Cenegal Road Large oak tree in roadway San Anselmo @ Estrada Avenue Large pine tree in roadway Page 21 of 200 ITEM NUMBER: A-3 DATE: 01/24/23 Due to the urgency of the work, compensation for the work is based upon prevailing wages and current Caltrans equipment rates. Given the progress and unknowns associated with the repairs, debris removal and emergency protective measures, the above work scope and estimated costs will change, but this is staff’s best estimate of the work to date. Staff will be continuing to use emergency contract work to address items that are health- and safety-related or are needed (and able) to be addressed immediately to protect both private and public property from further damage. City staff is also documenting all activities and costs in accordance with FEMA and California OES requirements for reimbursement of eligible costs associated with the January 2023 storms. FISCAL IMPACT: Estimated costs associated with the itemized work schedules above totals $500,000. This estimate will increase as other storm damage and repair work is identified and completed. Future staff reports will be prepared to keep the Council informed of other expenditures related to emergency situations in accordance with the City’s Purchasing Policies. ATTACHMENTS: None Page 22 of 200 ITEM NUMBER: B-1 DATE: 01/24/23 Atascadero City Council Staff Report - Community Development Department / Fire Department 2022 California Building and Fire Codes Update (Continuation) Title 4 Public Safety Text Amendments Title 8 Building Code Text Amendments (City of Atascadero) RECOMMENDATIONS: Council continue the item to February 14, 2023, to allow staff additional time to complete the updates to the Building and Fire Codes. DISCUSSION: Background The 2022 California Building and Fire Codes were adopted by the State of California on July 1, 2022 and became effective throughout the State on January 1, 2023, regardless of adoption by local jurisdictions. Staff is continuing work on the report and applicable ordinances; however additional time is needed to complete the code amendments and staff report and is asking Council to continue the Public Hearing to February 14, 2023. FISCAL IMPACT: No fiscal impact associated with continuing the public hearing to the next regular Council meeting. ATTACHMENTS: None Page 23 of 200 ITEM NUMBER: C-1 DATE: 01/24/23 Atascadero City Council Staff Report – Public Works Department El Camino Real Downtown Infrastructure Enhancement Project Design Public Outreach Kickoff Session RECOMMENDATIONS: Council provide input and receive information from the public on outreach concepts for the El Camino Real Downtown Infrastructure Enhancement Plan. REPORT IN BRIEF: The El Camino Real Downtown Infrastructure Enhancement Plan (the Project) has been developed and refined since the Project was formally initiated in August 2017. From 2017- 2020 multiple options were considered, with preferred design alternatives refined through a process of public input, City department review, Council direction, and technical analysis of traffic modeling and safety considerations. The selected alternative was approved by Council in August 2020. During the summer of 2021, staff received proposals from engineering consultants to prepare design engineering and construction documents for the Project. Wallace Group was awarded the contract for these services by Council in October 2021. Now, a preliminary engineering plan layout has been completed following a topographic survey, geotechnical testing, and utility mapping. A design “working group” has been created that meets biweekly with members of the design team and City staff from the City Manager, Community Development, and Public Works Departments. Now that the preliminary engineering research and background work has been completed, the City is in a position to initiate a public outreach effort. The intent of this effort prior to final engineering design is to include City residents and business owners in the process of exploring the options for how to best utilize the rambla (center median parking/landscape area) spaces and to gather community insight into the desired feel for these public spaces. DISCUSSION: Project Background The approved El Camino Real Downtown Infrastructure Enhancement Plan is a planning level document that outlines recommendations for road improvements, incorporating enhanced pedestrian and bicycle access, along with increased parking opportunities and Page 24 of 200 ITEM NUMBER: C-1 DATE: 01/24/23 safer crosswalks. The primary goal is public safety for all roadway users: pedestrians, bicyclists, and motorists. A second goal is to enhance economic development in the downtown by creating a zone that slows traffic speeds, enhances appearance and safety, and increases parking. The Plan extents include the El Camino Corridor from the intersection of Highway 41 to the intersection of Rosario Avenue. The overall objective for the reconstruction of this segment of roadway has been consistent since inception in 2017: to develop a holistic corridor plan within the Downtown El Camino Real Corridor that considers the needs and goals of all multimodal users, residents, businesses, and City leaders. The Project was formally initiated in 2017, with KTUA of San Diego hired in November 2017 to assist the City in the analysis and development of a corridor plan. Central Coast Transportation Consulting (CCTC) of Morro Bay worked as a sub-consultant to KTUA to provide traffic engineering and operations analysis. Project objectives, identified early in the process, have driven the conceptual design. These objectives include the following: • Provide public safety for all roadway users by incorporating complete streets and “road diet” concepts and principles. • Enhance economic development by supporting existing and future merchants with additional parking. • Support Downtown business synergy through a partnership in crafting a Downtown traffic calming plan. • Enhance the streetscape of El Camino Real by creating a sense of place and arrival into the Downtown. • Create safe pedestrian connections and crossings while enhancing the walkability of Downtown. • Slow vehicular speeds to increase safety and visibility, including an analysis of impacts to level of service (LOS). • Enhance the ability to host more special events in the Downtown area. • Accommodate multi-modal transportation where feasible. After evaluation of multiple options, a traffic analysis was conducted in early 2018, and a series of public outreach/feedback workshops were initiated in August 2018. Twelve workshop events took place, both in person and virtually, that included a presentation and small breakout sessions with City staff. Participants included residents, business owners, and other interested persons who completed feedback survey forms that contained questions to assist the City in determining appropriateness of the draft concept plans. The draft concept plans were revised based upon feedback and presented, along with a summary of public feedback, to the Council at their August 11, 2020 meeting. Council approved the concept plans for the Project at that meeting. In July 2021, staff prepared a Request for Proposal (RFP) and solicited proposals from qualified consultants to provide design services and prepare construction plans and specifications for the Project. While it was understood that the concept plan had already been developed and approved by Council, the design process was expected to be extensive and include an initial phase of work required to refine design concepts, define cohesive design elements and materials types, and identify engineering constraints and opportunities. As part of this refining effort, it was anticipated that the process would Page 25 of 200 ITEM NUMBER: C-1 DATE: 01/24/23 include opportunities for additional public and Council review and input, and significant interdepartmental coordination with the selected consultant design team, to ensure the Project meets current and future needs. After careful review of proposals and interviews with the top consultants, staff determined that the design team led by Wallace Group was best qualified to provide engineering services for this Project. The consultant team includes KTUA, CCTC, Earth Systems Pacific, and Kittelson & Associates. The design team was formally awarded the Project in October 2021, and the City initiated a first phase or preliminary work, including geotechnical testing and investigation, topographic survey, and utility research and mapping. City staff has been working closely with Wallace Group as a base engineering plan has been prepared. Analysis While multiple streetscapes projects from 2008-2012 constructed improvements through the Downtown El Camino Real Corridor, this Project is unique in its size, comprehensive scope, and opportunity. It is envisioned that this Project will build upon recent private developments within the Downtown core, and create a community cohesiveness that was in many ways lost when the original twenty-foot wide El Camino Real was expanded to act as a State highway. This Project is an opportunity to rebuild that sense of community within the downtown, and simultaneously meet a variety of needs such as parking, shade, walkability, and public spaces. While the concept plan approved by Council defined these new “rambla” spaces and the preliminary engineering design has confirmed the viability of the geometric layout, the question now becomes how should these spaces be utilized and what amenities should be incorporated. Among the primary considerations, some of the considerations include: * Amount of landscape and trees vs. parking spaces and activity areas. * The addition of community identity signs. * The addition of lighting and other vertical features. * The type and color of paving for the ramblas areas. * Size and type of trees for the center ramblas areas. * Addition of drop-off zones. * Bicycle parking and other “street furniture” such as seating. The overall goal of the community outreach effort for this Project is to solicit “value- based” input from the community on Project “finishes”. These details will be used to help prepare a refined design concept plan. A total of 10 (Council Meeting plus nine additional session) public outreach sessions are scheduled at different times of the day and different days of the week. Some outreach sessions will be in person and some will be strictly virtual all in an effort to provide maximum flexibility for every interested resident and business to be able to attend at least one session. Page 26 of 200 ITEM NUMBER: C-1 DATE: 01/24/23 All of the outreach sessions will be the same format allowing residents and business operators to attend the one session that is most convenient for them. At each session attendees will be allowed to drop in at any time during the session and will have time to look through three concepts plans, each with differing proposed amenities and designs. There will also be additional materials to better illustrate some of the concepts and opportunities to ask questions to help clarify what the options mean. Once they have browsed the concepts, public participants will be paired with a staff member who will walk them through the open-ended questions intended to find out what is important to each person. Staff will be taking notes and documenting participant responses. Outreach Session Detailed Information Who? All residents will be invited to engage in a series of public open house forums through the City’s social media channels and other outlets. Downtown Merchants will be invited to engage in a series of public open house forums by personal outreach from city staff and through our partners at the Chamber of Commerce. Schools, Churches, ECHO, and other proximate groups will be invited to engage in a series of public open house forums. Invitations will be extended by personal outreach from city staff and via the groups’ newsletters or flyers at the organization. Which Session? Residents, business operators and other interested parties need only to attend ONE of the Outreach Sessions. The same information will be presented and the same questions asked of each individual who attends regardless of which session they choose to attend. Multiple sessions are being offered to public convenience. How? Residents will engage in a value-based exercise at a series of open houses held at different times in various locations (including a virtual option). Format includes facilitated tables with small group discussions to review alternatives and discuss the likes and dislikes of each. Wallace group will train City staff who will facilitate table discussions. Page 27 of 200 ITEM NUMBER: C-1 DATE: 01/24/23 Tuesday, January 31, 2023 2:00 - 4:00 pm In person- City Hall Wednesday, February 1, 2023 6:00 - 8:00 pm In person- City Hall Thursday, February 2, 2023 9:00 - 11:00 am Virtual* Friday, February 3, 2023 Noon - 2:00 pm In person- City Hall Saturday, February 4, 2023 9:00 - 11:00 am In person- City Hall Monday, February 13, 2023 8:30 -10:30 am Virtual* Tuesday, February 14, 2023 Noon - 2:00 pm In person- City Hall Thursday, February 16, 2023 6:00 - 8:00 pm Virtual* Friday, February 17, 2023 10:00 - Noon In person- City Hall When and Where? January and February 2023 Open House Format (Attendees May Drop in Anytime) * Information to join the virtual meetings is as follows: Join Zoom Meeting: https://us02web.zoom.us/j/2580252681 Meeting ID: 258 025 2681 One tap mobile: +16699006833,,2580252681# US Dial by your location: +1 669 900 6833 US (San Jose) Find your local number: https://us02web.zoom.us/u/ketQ6b8PVB Attendees will have the opportunity to review the three alternative concept plans (See Attachment - Alternative Concepts). The three alternative concepts feature various elements that can be used in the final design of the project. Below is a table identifying some of the major differences between the three concepts to help the outreach session attendees/viewers navigate the graphics and determine their preferences to share with the facilitators. 4. CONCEPT COMPARISON MATRIX Concept #1 Concept #2 Concept #3 Concept Name Parking with Flex Space Mid-Concept with Intersection Medallions Plaza Plan Parking (Total Spaces) 280 262 225 Pavement Treatment Stamped Concrete Pavers Asphalt Paving Center Space Lighting String Lights Hanging pendant Lights Pedestrian level street light poles Plaza/Flex Space Area Flex Space North of Traffic Way None Plaza across from Sunken Gardens Parklet near Bru Coffee North Gateway Sign Gateway Arch Pole Sign #1 Monument Sign South Gateway Sign Gateway Arch Centennial Plaza Arch Sign Pole Monument Sign #2 Page 28 of 200 ITEM NUMBER: C-1 DATE: 01/24/23 Center Plantings Potted Trees #1 Potted Trees #2 Raised Planter with concrete seat wall Stormwater Runoff Planter Concept #1 Traffic Way NW Concept #2 Traffic Way NW None Plants Chinese Pistache Tree Provence Lavender White Crepe Myrtle Small Cape Rush Purple Robe Locust Tree Howard McMinn Manzanita Benches City Downtown Black Bench Green Metal Benches Concrete seat wall Loading Zone Wilkins Printing SLODoCo LaPlaza B Building North of Hush Harbor Carlton Tent City Brewing Uber Eats Sylvester’s Burgers North of Hush Harbor ECR Bridge – west side Carlton Vino Inn LaPlaza B Bldg Bike Parking Sidewalk metal bike hoops In streets Rambla bike lockers East Mall Crosswalk Hybrid beacon Hybrid beacon Pedestrian Traffic Signal Intersection Treatment Traditional Crosswalk Markings Brick circle similar to City Hall +1 similar Decorative Intersection Crosswalks 1. OUTREACH QUESTIONS/FEEDBACK APPROACH The one-on-one interviews with attendees are designed to solicit the preferences and values of the attendees. The following prompting questions will be asked to facilitate discussion: 1. Which of the concept plans do you like most? 2. Why do you like that concept plan the most? 3. Which of the concept plans do you like least? 4. Why do you like that concept plan the least? 5. What else would you like to share with us? These broad prompting questions require both forced ranking (which do you like most/least) and an opportunity for attendees to talk about the features that are important to the attendee (why do you like/not like). The public can find information on the City’s Website for DIEP Outreach Sessions at www.atascadero.org/DIEP Page 29 of 200 ITEM NUMBER: C-1 DATE: 01/24/23 Once input is gathered from all 10 Outreach Sessions, staff and the consultant will take all of the input received and use it to refine, adjust and eventually prepare a revised concept plan. FISCAL IMPACT: No direct fiscal impact as a result of Council action on this item. ATTACHMENT: Three Alternative Concepts for discussion at January/February Open House Series Page 30 of 200 ITEM NUMBER: C-1 DATE: ATTACHMENT: 01/24/23 1 Page 31 of 200 ITEM NUMBER: C-1 DATE: ATTACHMENT: 01/24/23 1 Page 32 of 200 ITEM NUMBER: C-1 DATE: ATTACHMENT: 01/24/23 1 Page 33 of 200 ITEM NUMBER: C-2 DATE: 01/24/23 Atascadero City Council Staff Report – Administrative Services Department Fiscal Year 2021-22 Audit RECOMMENDATION: Council review and accept the financial audit for the period ended June 30, 2022. 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. The City’s fiscal year 2021-22 ended much better than expected; the fiscal year saw strong revenues in several categories and Federal COVID-related funding, all of which positively impacted revenues for the year. Expenditures came in at or under estimates in most funds and divisions. As the City moves toward the future, the Council’s continued focus on economic development, 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, Including Measure D-20 and Measure F-14 All General Fund activity (including Measure D-20 and Measure F-14) combined to increase the General Fund by about $8 million during the year. The General Fund balance at the end of the year, including the Measure F-14 funds, was $25,332,470. General Fund activity for fiscal year 2021-22 is summarized in the following chart: Measure F-14 All Other General Fund Total General Fund Revenues 3,095,813$ 36,098,581$ 39,194,394$ Expenditures 3,363,273 27,834,804 31,198,077 Net changes in Fund balance (267,460) 8,263,777 7,996,317 Beginning Fund Balance 4,474,858 12,861,295 17,336,153 Ending Fund Balance 4,207,398$ 21,125,072$ 25,332,470$ Page 34 of 200 ITEM NUMBER: C-2 DATE: 01/24/23 Sales Tax Measure F-14 Activity Measure F-14 Sales Tax activity is included in the General Fund for legal and accounting reasons, but is broken out in this discussion for more transparency. Measure F-14 revenue was about $3.2 million for the fiscal year, which is about 62% 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 $3.4 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, over 45 centerline miles of road have been improved since the inception of the Measure F-14. General Fund Activity, Excluding Measure F-14 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 fiscal sustainability and that the reserve balances remain in an acceptable range. This Strategy promotes the use of General Fund reserves during lean years, and saving of reserves during healthy years, in order to continue to fund essential City services at a steady level. At the start of fiscal year 2021-22, the adopted budget anticipated the use of $1,915,590 in General Fund reserves during the fiscal year. The year concluded with a net change in fund balance of $8,260,000. This is a positive variance from the Projection of about $10,175,590. The variance is due to a number of factors, but the largest of these are an increase in Sales Tax due to the first full year of Measure D-20 funds and Intergovernmental Revenues due to funding from the COVID-related American Rescue Plan Act (ARPA). Page 35 of 200 ITEM NUMBER: C-2 DATE: 01/24/23 The following Comparative Income Statement compares revenues and expenditures for the 2020-21 and 2021-22 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. Nevertheless, it still provides some perspective. 2020/2021 Actuals 2021/2022 Actuals % Change $ Change REVENUES: Property Tax 10,792,509$ 11,213,632$ 3.9%421,123$ Sales tax 6,144,305 11,409,598 85.7%5,265,293 Transient Occupancy Tax 1,385,896 2,049,160 47.9%663,264 Cannabis Business Tax 48,983 50,505 3.1%1,522 Other Taxes 1,617,354 1,705,449 5.4%88,095 Intergovernmental 557,292 3,829,654 587.2%3,272,362 Grants 155,648 385,671 147.8%230,023 Service Charges Mutual Aid 1,442,644 693,598 -51.9%(749,046) Public safety 233,544 230,548 -1.3%(2,996) Development 1,443,821 1,430,866 -0.9%(12,955) Recreation, zoo, parks & pavilion 790,255 1,237,355 56.6%447,100 Interest 198,779 177,972 -10.5%(20,807) Adjustment to Market Value-GASB 31 (103,654) (703,306) 578.5%(599,652) Interfund charges 1,162,868 1,308,368 12.5%145,500 Other 336,778 375,941 11.6%39,163 Transfers 698,950 703,570 0.7%4,620 Total revenues 26,905,972$ 36,098,581$ 34.2%9,192,609$ EXPENDITURES: Employee services (16,722,868)$ (18,665,393)$ 11.6%(1,942,525)$ (5,847,962) (7,522,538) 28.6%(1,674,576) Special purchases (975,754) (610,243) -37.5%365,511 Capital outlay (1,139,757) (1,036,630) -9.0%103,127 Total expenses (24,686,341) (27,834,804) 12.8%(3,148,463)$ Net Income before extraordinary item 2,219,631 8,263,777 (1,375,175) - Net income after extraordinary item 844,456 8,263,777 Fund Balance Beginning of year 12,016,839 12,861,295 FUND BALANCE END OF YEAR 12,861,295$ 21,125,072$ Operating supplies & services GENERAL FUND COMPARATIVE INCOME STATEMENT Excluding Measure F-14 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, Mutual Aid Revenue, Transient Occupancy Tax, and the Adjustment to Market Value- GASB31. Page 36 of 200 ITEM NUMBER: C-2 DATE: 01/24/23 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 2021-22 were determined as of January 2021. Secured property tax grew at a rate of 4.5% from 2020-21 fiscal year to the 2021-22 fiscal year. The increase is due to a combination of the inflationary increases and increased economic development activity. Assessed valuations are expected to have stronger growth in the current fiscal year of about 5.5%, and then continue a steady growth trend of 3%-4% each year in future years. Detailed, comparative Property Tax Revenue information for the most recently completed two fiscal years is found below: 2020/2021 Actuals 2021/2022 Actuals % Change $ Change Secured Property Tax 6,693,256$ 6,992,373$ 4.5%299,117$ Property tax in lieu of VLF 3,163,757 3,290,304 4.0%126,547 Unsecured property tax 275,023 262,581 -4.5%(12,442) Supplemental property tax 142,452 186,227 30.7%43,775 Redevelopment agency distribution 527,383 497,884 -5.6%(29,499) Prior year secured and unsecured (9,053) (15,094) 66.7%(6,041) Property tax penalities and interest (309) (643) 108.1%(334) Total revenues 10,792,509$ 11,213,632$ 3.9%421,123$ GENERAL FUND PROPERTY TAX REVENUE COMPARISON Sales Tax Revenue Atascadero now has three separate revenue components that make up the 8.75% sales tax rate: 1. The City receives 1% of the California basic sales tax rate of 7.25% (referred to as Bradley-Burns); 2. Measure F-14, which adds 0.5% and is used for repair of local roads; and 3. Measure D-20, which adds 1.0% to the General Fund for essential services. The impacts of COVID-19 were historically unique and unpredictable, particularly in regard to sales tax revenue. While sales tax revenue is discussed as a single revenue source, it is collected on products in a variety of industries. COVID restrictions and the new world we now live in impacts the industries in different ways. Revenues from the Fuel and Service Station industry group were up 35% over the prior year, primarily due to the higher prices at the pump and the increased demand once the economy opened back up. The Autos and Transportation industry group was up 14% over the prior year, along with Building and Construction at a 7% increase. Offsetting Page 37 of 200 ITEM NUMBER: C-2 DATE: 01/24/23 those industry sectors was the Business and Industry group with an 8% decrease from the prior year, and the General Consumer Goods industry group with a decrease of 3%. In addition, Assembly Bill 147 (AB 147) expanded the collection of sales and use taxes from out-of-state sales. AB 147 began requiring certain online retailers and marketplace facilitators to collect and remit sales tax related to online sales starting in 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”. Growth in the pools has been significant since 2019. While it slowed down in fiscal year 2021-22, it was still about 16% of total Bradley-Burns sales tax revenue. Overall Bradley-Burns sales tax revenues were almost $5.2 million for the 2021-22 fiscal year. Sales Tax Measure D-20 is the new “Essential Services Transaction and Use Tax”. Because Measure D-20 is a general tax, related revenues and expenditures are included in the City’s General Fund. While the nature of the expenditures doesn’t easily allow for separate tracking of each D-20 purchase, the revenue can be tracked separately, and trends similar to the Bradley-Burns revenue. Measure D-20 Revenue of about $6.2 million was collected during fiscal year 2021-22. Although both the Bradley-Burns and Measure D-20 sales tax rates are each 1% of sales, similar to Measure F-14, 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. Intergovernmental Revenues Included in intergovernmental revenue is the first of two payments from the Federal government under the American Rescue Plan Act, Coronavirus State and Local Fiscal Recovery Funds, for additional financial relief in the wake of the COVID-19 pandemic. The City received the first payment of $3,597,290 in July 2021. Funds may be used for specific purposes as designated in the U.S. Department of Treasury’s Final Rule. The Final Rule offers a standard allowance for revenue loss of up to $10 million. Recipients, such as Atascadero, that select the standard allowance may use the funds for government services. The second of the two payments was received in July 2022, and is included in General Fund Deferred Inflows in the 2021-22 financial statements and will be recognized as revenue in fiscal year 2022-23. Mutual Aid Revenue The City has agreements with other agencies such as the U.S. 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 2020-21, resulting in a much higher than average response in that year. By comparison, fiscal year 2021-22 was about $749,000 less than the prior year. Mutual Aid revenues were $693,000 for fiscal year 2021-22. Offsetting costs are included in employee services and operating expenditures sections. Page 38 of 200 ITEM NUMBER: C-2 DATE: 01/24/23 Transient Occupancy Tax Revenue The Transient Occupancy Tax (TOT) Revenues were steadily trending up through February 2020, but then began to decline in March 2020 due to impacts of COVID-19. As restrictions began to loosen, revenue picked up again in fiscal year 2020-21, where it came back up to 2018-19 levels. In fiscal year 2021-22, TOT revenue broke the two-million-dollar mark for the first time ever and ended the year at $2,049,160, or 48% over the prior (COVID impacted) year. Interest Adjustment to Fair Market Value Governmental accounting standards require that the City report investments at Fair Market Value as of the last day of the reporting period. It’s the City’s policy to hold investments to maturity except under certain circumstances, therefore the gain or loss that is reported as an adjustment to Fair Market Value is typically not realized. The loss reported in the 2021-22 financial statements was about $703,000, however, since the City will hold these investments to maturity, this adjustment will not be recognized and is expected to fluctuate with the market. 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 2021-22 were higher than the prior year by about $1.9 million but lower than final budget by almost $756,000. Sales Tax Measure D-20 has provided the means to offer more competitive salaries to staff for retention of existing, and attraction of new, professional employees. All City departments have been affected by this, but the Police Department, in particular, has seen much more success in attracting new applicants since the salary changes went into effect July 1, 2021. Additionally, Measure D-20 provided funds for five additional police officer positions, one additional public safety dispatch position, a fire Battalion Chief, and a firefighter position that was previously funded through a grant. Increases in retirement costs and health care are also included in the larger number for fiscal year 2021-22. 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, which accounts for the difference between the actual costs and the final budget. Operating Supplies and Services When compared to the prior year, 2021-22 expenditures were higher by about $1.7 million. Actual results for 2021-22 were on target with the final budget and the June 2021 Seven-Year Forecast amounts. Sales Tax Measure D-20 is providing additional resources to allow for 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 Page 39 of 200 ITEM NUMBER: C-2 DATE: 01/24/23 time. In most cases, when the expenses come in under budget, this means the budgeted 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. The final budget for Special Purchases and Capital Outlay in fiscal year 2021-22 included a number of ongoing projects including the General Plan Update, the Broadband Enhancement Project, Computer Aided Dispatch/Records Management System Software Upgrade, Fire Station #1 Replacement, Radio Repeater upgrades, and more. General Fund Balance The General Fund balance (excluding Measure F-14 Activity) at June 30, 2022, was just over $21 million, or 76% 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. The next Seven-Year Projection will be updated with the 2023-2025 budget process. 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 2021-22 Audited City Financial Statements 2. Independent Auditors’ Draft Report on Internal Control Page 40 of 200 CITY OF ATASCADERO FINANCIAL STATEMENTS June 30, 2022 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 41 of 200 FINANCIAL STATEMENTS June 30, 2022 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 42 of 200 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2022 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 43 of 200 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2022 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 44 of 200 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2022 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 45 of 200 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 the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the major funds, and the aggregate remaining fund information of the City of Atascadero, as of and for the fiscal year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Atascadero’s basic financial statements as listed in the table of contents. 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, the major funds, and the aggregate remaining fund information of the City of Atascadero, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Atascadero and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Atascadero’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Atascadero’s internal control. Accordingly, no such opinion is expressed. 1 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 46 of 200 • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Atascadero’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 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 OPEB liability and related ratios on page 96, the schedule of OPEB contributions on page 97, the schedule of the local government’s 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 December 12, 2022, 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 December 12, 2022 2 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 47 of 200 3 MANAGEMENT’S DISCUSSION AND ANALYSIS Fiscal Year Ended June 30, 2022 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, 2022. 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, 2022, by about $197.8 million. Of this amount, $146.4 million is net investment in capital assets, $35.9 million is restricted for various purposes, and $15.5 million is unrestricted. • Capital projects expenditures were about $2.9 million more than the amount spent in the prior fiscal year due primarily to additional road rehabilitation projects that were ongoing through the fiscal year. • As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $60 million, an increase of about $7.1 million from the prior fiscal year. Approximately $35.9 million of the total is not available for more general spending because it represents amounts that are already obligated or restricted. About $24 million of the ending fund balance is available for future obligations. • The City’s compensated absences due to employees increased by about $365,000, and the City’s total liabilities decreased by about $11.7 million. This decrease was primarily due to the City’s change in CalPERS Net Pension Liability. It was further decreased by a reduction in bonds payable, but was offset by an increase in compensated absences 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 $24,730,061 or 80% of total general fund expenditures, $4,207,398 of which is related to the Sales Tax Measure F-14 funding. • The American Rescue Plan Act (ARPA) funds were allocated to the City in two tranches of $3,597,290 each for economic recovery from the effects of COVID-19. The first tranche was received in July 2021 and the second in July 2022. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 48 of 200 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2022 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-Wide 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, No. 80, and No. 90. 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 49 of 200 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2022 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 50 of 200 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2022 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 $197.8 million at the close of the most recent fiscal year. 2021-2022 Governmental Activities 2021-2022 Business-Type Activities 2021-2022 Total 2020-2021 Governmental Activities 2020-2021 Business-Type Activities 2020-2021 Total 79,367,406$ 9,432,772$ 88,800,178$ 66,712,881$ 12,945,049$ 79,657,930$ 141,953,052 18,498,423 160,451,475 137,160,987 14,493,219 151,654,206 Total assets 221,320,458 27,931,195 249,251,653 203,873,868 27,438,268 231,312,136 7,114,260 148,427 7,262,687 6,798,729 140,732 6,939,461 Total deferred outflows 7,114,260 148,427 7,262,687 6,798,729 140,732 6,939,461 4,845,345 1,082,305 5,927,650 3,924,506 1,112,219 5,036,725 34,539,006 501,972 35,040,978 45,890,914 884,485 46,775,399 Total liabilities 39,384,351 1,584,277 40,968,628 49,815,420 1,996,704 51,812,124 17,273,069 458,936 17,732,005 639,031 37,405 676,436 Total deferred inflows 17,273,069 458,936 17,732,005 639,031 37,405 676,436 127,853,052 18,498,423 146,351,475 122,790,987 14,493,219 137,284,206 35,948,188 - 35,948,188 36,865,362 - 36,865,362 7,976,058 7,537,986 15,514,044 561,797 11,051,672 11,613,469 Total net position 171,777,298$ 26,036,409$ 197,813,707$ 160,218,146$ 25,544,891$ 185,763,037$ 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 18% of the City’s net position represents resources subject to external restrictions on how they may be used. The remaining 8% ($15,514,044) is considered unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. There was an increase of $3,900,575 in unrestricted net position from fiscal year 2020-2021 to 2021-2022. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 51 of 200 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2022 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 $12.1 million. Information about changes in net position is summarized below: 2021-2022 Governmental Activities 2021-2022 Business-Type Activities 2021-2022 Total 2020-2021 Governmental Activities 2020-2021 Business-Type Activities 2020-2021 Total Revenues: Program Revenues Charges for services 3,788,440$ 3,683,596$ 7,472,036$ 3,840,606$ 3,202,434$ 7,043,040$ Operating grants and contributions 5,143,736 487,295 5,631,031 1,675,019 375,145 2,050,164 Capital grants and contributions 4,467,886 - 4,467,886 2,944,236 - 2,944,236 General Revenues: Secured and unsecured property taxes 12,221,064 - 12,221,064 11,740,280 - 11,740,280 Sales and use taxes 14,621,612 - 14,621,612 8,976,357 - 8,976,357 Other taxes 4,258,578 - 4,258,578 3,374,198 - 3,374,198 Motor vehicle in lieu 34,222 - 34,222 22,045 - 22,045 Investment Income (1,446,897) (302,298) (1,749,195) 194,021 22,921 216,942 Gain on disposal of capital assets 2,178 - 2,178 - 9,525 9,525 Interest from Successor Agency 706,695 - 706,695 635,984 - 635,984 Total Revenues 43,797,514 3,868,593 47,666,107 33,402,746 3,610,025 37,012,771 SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2022 and 2021 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 52 of 200 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2022 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued) 2021-2022 Governmental Activities 2021-2022 Business-Type Activities 2021-2022 Total 2020-2021 Governmental Activities 2020-2021 Business-Type Activities 2020-2021 Total Program Expenses General Government 3,831,315$ -$ 3,831,315$ 3,775,014$ -$ 3,775,014$ Public Safety 16,170,995 - 16,170,995 14,799,947 - 14,799,947 Community Development 3,287,824 - 3,287,824 2,675,072 - 2,675,072 Community, Recreation & Zoo Services 2,978,346 - 2,978,346 2,437,541 - 2,437,541 Parks & Open Space 1,266,469 - 1,266,469 1,297,724 - 1,297,724 Public Works 4,007,045 - 4,007,045 3,531,980 - 3,531,980 Sewer - 2,738,529 2,738,529 - 2,642,732 2,642,732 Transit - 638,546 638,546 - 505,402 505,402 Interest on long-term debt 696,368 - 696,368 706,901 - 706,901 Total Expenses 32,238,362 3,377,075 35,615,437 29,224,179 3,148,134 32,372,313 Change in net position before extraordinary item 11,559,152 491,518 12,050,670 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 11,559,152 491,518 12,050,670 2,803,392 461,891 3,265,283 Net position- beginning 160,218,146 25,544,891 185,763,037 157,414,754 25,083,000 182,497,754 Net position- ending 171,777,298$ 26,036,409$ 197,813,707$ 160,218,146$ 25,544,891$ 185,763,037$ SUMMARY OF CHANGES IN NET POSITION (continued) For the Fiscal Years Ended June 30, 2022 and 2021 Governmental activities during the year increased the City’s net position by $11,559,152. Business-type activities increased the City’s net position by $491,518. American Rescue Plan Act (ARPA) The Federal American Rescue Plan Act (ARPA) was signed into law on March 11, 2021, to provide additional financial relief in the wake of the COVID-19 pandemic. ARPA includes a significant amount of “Coronavirus State and Local Fiscal Recovery Funds” (SLFRF) for state and local governments. The funds are being distributed in two equal installments. Atascadero received the first distribution in July 2021 and the second in July 2022. Funds may be used for specific purposes as designated in the U.S. Department of Treasury’s Final Rule. The Final Rule offers a standard allowance for revenue loss of up to $10 million. Recipients that select the standard allowance may use the funds for government services. The City is eligible to use the standard deduction for revenue use and may use all funding for general government purposes. The City’s total ARPA allocation is $7,194,580, half of which was received and used in fiscal year 2021-2022. The second half is in General Fund Deferred Inflows. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 53 of 200 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2022 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, 2022, the City’s governmental funds reported combined ending fund balances of $60,003,541. Of this total, $116,283 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 $24,011,916. The General Fund portion of this, $24,730,061, 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 $35,651,208 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, $224,134, 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, 2022, the total fund balance was $25,332,470 and the spendable unassigned fund balance was 98% 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 82% of fund expenditures. The General Fund balance increased $7,996,317 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, 2022, the fund balance was $5,849,423. 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, 2022, was $2,817,013, down $32,989 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 ($718,145) at June 30, 2022. 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, 2022, the total fund balance was $15,506,310, which reflects $14.1 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 54 of 200 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2022 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, 2022, these funds had an aggregate fund balance of $11,216,470. Of this total, $730 is non- spendable and $224,134 is assigned for specific uses. The Restricted Fund Balance is $10,991,606. 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, decreased in FY 2021-2022 by $11,734,421, primarily due to the large decrease in the CalPERS Net Pension Liability, as required to be reported by GASB 68. It was further decreased by a reduction in bonds payable, but was offset by an increase in compensated absences and workers’ compensation liability. The Net Pension Liability for Governmental Activities at the end of the year was $18,270,558 and $488,641 for Business-type Activities. Compensated absences increased by $364,926 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, 2022, net capital assets of the governmental activities totaled $141,953,052 and the net capital assets of the business-type activities totaled $18,498,423. Depreciation on capital assets is recognized in the Government-wide Financial Statements. The City has elected to depreciate its infrastructure assets. In order to depreciate the infrastructure assets, an estimated useful life for each type of asset was determined using engineering standards, industry standards, as well as discussions with City staff regarding the City’s maintenance program for each asset type. This allowed the estimated useful life of each asset type to be tailored to include the unique attributes of the City of Atascadero. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 55 of 200 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2022 11 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) The following table presents summary information on the City’s capital assets: 2021-2022 Governmental Activities 2021-2022 Business- Type Activities 2021-2022 Total 2020-2021 Governmental Activities 2020-2021 Business- Type Activities 2020-2021 Total Non-Depreciable: Land 41,659,554$ 547,738$ 42,207,292$ 41,588,097$ 547,738$ 42,135,835$ Construction in progress 5,163,296 5,717,647 10,880,943 5,549,723 1,791,495 7,341,218 Depreciable: Vehicles and equipment 14,048,430 1,232,249 15,280,679 13,127,131 1,232,249 14,359,380 Structures and improvements 56,796,873 30,307,997 87,104,870 55,129,124 29,405,855 84,534,979 Infrastructure 79,161,466 - 79,161,466 74,009,505 - 74,009,505 Accumulated Depreciation (54,876,567) (19,307,208) (74,183,775) (52,242,593) (18,484,118) (70,726,711) Net capital assets 141,953,052$ 18,498,423$ 160,451,475$ 137,160,987$ 14,493,219$ 151,654,206$ General Fund Budgetary Highlights A detailed budgetary comparison schedule for the fiscal year ended June 30, 2022, 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 2021-2022 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 2021-2022: General Fund Original Budget Final Budget Actual Variance Positive (Negative) Revenues 30,931,560$ 31,536,200$ 38,490,824$ 6,954,624$ Expenditures 36,372,140 38,223,190 30,986,044 7,237,146 Other Sources (Uses)293,260 293,260 491,537 198,277 Fund Balance, beginning 17,336,153 17,336,153 17,336,153 - Fund Balance, ending 12,188,833$ 10,942,423$ 25,332,470$ 14,390,047$ ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 56 of 200 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2022 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, Broadband Projects, the General Plan Update, and legal services. 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 $14.4 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 have continued to recover in fiscal year 2021-2022. Approximately 30% 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. 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 in fiscal year 2021-22 was about $6.2 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. Some City revenues still reflect negative impacts, but other revenues such as Zoo admissions and American Rescue Plan Act Funds show positive impacts. The 2022-2023 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 2022-2023 budget includes the planned use of $881,950 in reserves, in accordance with the Council’s financial strategy. CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Atascadero, Administrative Services Department, 6500 Palma Avenue, Atascadero, CA 93422. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 57 of 200 BASIC FINANCIAL STATEMENTS ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 58 of 200 CITY OF ATASCADERO STATEMENT OF NET POSITION June 30, 2022 Governmental Activities Business-Type Activities Total ASSETS Cash and investments 50,588,295$ 9,060,492$ 59,648,787$ Restricted cash and investments: Cash with fiscal agents 1,406,310 - 1,406,310 Certificates of deposit 85,473 - 85,473 Receivables: Federal distributions due 3,745,769 430,635 4,176,404 Due from State of California 2,855,376 - 2,855,376 Due from County of San Luis Obispo 692,004 61,510 753,514 Accrued interest 172,014 31,725 203,739 Accrued interest receivable- 2010 bonds 171,767 - 171,767 Other receivables 1,199,307 38,350 1,237,657 Internal balances 196,010 (196,010) - Deposits, prepaid items, and inventory 64,710 6,070 70,780 Notes receivable 4,090,371 - 4,090,371 Advance receivable- Successor Agency 14,100,000 - 14,100,000 Capital assets: Non-depreciable: Land 41,659,554 547,738 42,207,292 Construction in progress 5,163,296 5,717,647 10,880,943 Depreciable: Vehicles and equipment 14,048,430 1,232,249 15,280,679 Structures and improvements 56,796,873 30,307,997 87,104,870 Infrastructure 79,161,466 - 79,161,466 Accumulated depreciation (54,876,567) (19,307,208) (74,183,775) Total assets 221,320,458 27,931,195 249,251,653 DEFERRED OUTFLOWS Deferred outflows related to pensions 7,114,260 148,427 7,262,687 Total deferred outflows 7,114,260 148,427 7,262,687 The notes to the basic financial statements are an integral part of this statement. 13 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 59 of 200 CITY OF ATASCADERO STATEMENT OF NET POSITION (continued) June 30, 2022 Governmental Activities Business-Type Activities Total LIABILITIES Accounts payable 1,981,806$ 749,153$ 2,730,959$ Accrued salaries and benefits 887,991 22,257 910,248 Accrued interest payable 171,767 - 171,767 Other payables 200,365 1,926 202,291 Deposits payable 62,079 - 62,079 Unearned revenue 1,541,337 308,969 1,850,306 Noncurrent liabilities: Due within one year 277,982 - 277,982 Due in more than one year 34,261,024 501,972 34,762,996 Total liabilities 39,384,351 1,584,277 40,968,628 DEFERRED INFLOWS Deferred inflows related to ARPA 3,597,290 - 3,597,290 Deferred inflows related to pensions 13,675,779 458,936 14,134,715 Total deferred inflows 17,273,069 458,936 17,732,005 NET POSITION Net investment in capital assets 127,853,052 18,498,423 146,351,475 Restricted for: Restricted for parks and recreation 2,549,465 - 2,549,465 Restricted for streets, roads, and drainage 8,335,087 - 8,335,087 Restricted for public safety 1,861,898 - 1,861,898 Restricted for economic development 1,846,005 - 1,846,005 Restricted for redevelopment and housing 5,849,423 - 5,849,423 Restricted for debt service 15,506,310 - 15,506,310 Unrestricted 7,976,058 7,537,986 15,514,044 Total net position 171,777,298$ 26,036,409$ 197,813,707$ The notes to the basic financial statements are an integral part of this statement. 14 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 60 of 200 CITY OF ATASCADERO STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2022 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 3,831,315$ 85,086$ 116,873$ -$ (3,629,356)$ -$ (3,629,356)$ Public safety 16,170,995 1,013,009 3,961,531 266,340 (10,930,115) - (10,930,115) Community development 3,287,824 1,225,982 225,899 101,533 (1,734,410) - (1,734,410) 2,978,346 1,188,776 71,922 163,946 (1,553,702) - (1,553,702) Parks & open space 1,266,469 56,846 11,000 587,878 (610,745) - (610,745) Public works 4,007,045 218,741 756,511 3,348,189 316,396 - 316,396 Interest on long-term debt 696,368 - - - (696,368) - (696,368) Total governmental activities 32,238,362 3,788,440 5,143,736 4,467,886 (18,838,300) - (18,838,300) Business-type activities: Sewer 2,738,529 3,648,700 - - - 910,171 910,171 Transit 638,546 34,896 487,295 - - (116,355) (116,355) Total business-type activities 3,377,075 3,683,596 487,295 - - 793,816 793,816 Total government 35,615,437$ 7,472,036$ 5,631,031$ 4,467,886$ (18,838,300) 793,816 (18,044,484) General revenues Taxes: Secured and unsecured property taxes 12,221,064 - 12,221,064 Sales tax and payments in lieu of sales tax 14,621,612 - 14,621,612 Transient lodging tax 2,049,160 - 2,049,160 Franchise taxes 1,301,298 - 1,301,298 Business license tax 173,525 - 173,525 Property transfer tax 230,626 - 230,626 Other taxes 503,969 - 503,969 Motor vehicle in lieu 34,222 - 34,222 Investment income (1,446,897) (302,298) (1,749,195) Interest from Successor Agency 706,695 - 706,695 Gain on sale of capital assets 2,178 - 2,178 Total general revenues 30,397,452 (302,298) 30,095,154 Change in net position 11,559,152 491,518 12,050,670 Net position at beginning of fiscal year 160,218,146 25,544,891 185,763,037 Net position at end of fiscal year 171,777,298$ 26,036,409$ 197,813,707$ 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 61 of 200 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET June 30, 2022 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 23,330,190$ 1,752,924$ 4,407,854$ -$ -$ 10,139,801$ 39,630,769$ Restricted cash and investments: - - - - 1,406,310 - 1,406,310 Certificates of deposit 85,473 - - - - - 85,473 Receivables: Federal distributions due 3,622,717 - - - - 123,052 3,745,769 Due from State of California 2,647,130 - - - - 208,246 2,855,376 58,872 - - - - 633,132 692,004 Accrued interest 78,405 6,128 14,873 - - 34,939 134,345 Other receivables 1,075,453 - - - - 123,854 1,199,307 Due from other funds 243,686 - - - - 718,145 961,831 Deposits, prepaid items, and inventory 30,080 - - - - 730 30,810 Notes receivable - 4,090,371 - - - - 4,090,371 Advances receivable- Successor Agency - - - - 14,100,000 - 14,100,000 Total assets 31,172,006$ 5,849,423$ 4,422,727$ -$ 15,506,310$ 11,981,899$ 68,932,365$ 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 62 of 200 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET (continued) June 30, 2022 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 1,128,157$ -$ 263,922$ -$ -$ 512,337$ 1,904,416$ Accrued salaries and benefits 845,469 - - - - 12,847 858,316 Due to other funds - - - 718,145 - 47,676 765,821 Unearned revenue 135,954 - 1,212,014 - - 192,569 1,540,537 Deposits 62,079 - - - - - 62,079 Other payables 70,587 - 129,778 - - - 200,365 Total liabilities 2,242,246 - 1,605,714 718,145 - 765,429 5,331,534 DEFERRED INFLOWS Deferred inflows related to ARPA funding 3,597,290 - - - - - 3,597,290 Total deferred inflows 3,597,290 - - - - - 3,597,290 Fund Balances: Nonspendable 115,553 - - - - 730 116,283 Restricted 486,856 5,849,423 2,817,013 - 15,506,310 10,991,606 35,651,208 Assigned for road projects - - - - - 224,134 224,134 Unassigned 24,730,061 - - (718,145) - - 24,011,916 Total fund balances 25,332,470 5,849,423 2,817,013 (718,145) 15,506,310 11,216,470 60,003,541 31,172,006$ 5,849,423$ 4,422,727$ -$ 15,506,310$ 11,981,899$ 68,932,365$ 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 63 of 200 CITY OF ATASCADERO RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET TO THE STATEMENT OF NET POSITION Total fund balances - governmental funds 60,003,541$ 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 129,545,100$ Accumulated depreciation (32,732,871) Net 96,812,229 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.(171,767) In governmental funds, the receivable from the Successor Agency related to interest on the 2010 long-term debt is 171,767 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 14,100,000 Workers' Compensation estimated claims liability in excess of deposits (17,734) Compensated absences payable 1,841,084 CalPERS pension liability 17,792,025 Other Post Employment Benefits 233,620 (33,948,995) 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 6,927,500 Deferred inflows (12,960,443) 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.(54,476) June 30, 2022 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 64 of 200 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 net position of the internal service funds are included in the Governmental Activities in the Statement of Net Position.54,997,942$ Total net position, governmental activities 171,777,298$ June 30, 2022 The notes to the basic financial statements are an integral part of this statement. 19 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 65 of 200 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2022 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 11,213,632$ -$ -$ -$ -$ 1,417,084$ 12,630,716$ Taxes based on sales and use 14,621,612 - - - - - 14,621,612 Franchise tax 1,301,298 - - - - - 1,301,298 Other taxes 2,503,816 - - - - - 2,503,816 Licenses and permits 787,086 101,533 613,683 21,696 - 1,031,891 2,555,889 Intergovernmental revenues: 34,222 - - - - - 34,222 3,597,290 - - - - - 3,597,290 Grants 385,671 - - - - 271,473 657,144 Other governmental revenues 198,142 - - - - 3,212,141 3,410,283 Charges for services: Public safety 924,146 - - - - - 924,146 Development 643,780 - - - - - 643,780 Recreation, parks, pavilion, and zoo 1,237,355 - - - - - 1,237,355 Other services 70,945 - - - - - 70,945 Fines and forfeitures 58,580 - - - - 933 59,513 Use of money and property (641,535) (46,286) (129,024) - 709,358 (299,339) (406,826) Other revenues 1,554,784 - - - - 31,213 1,585,997 Total revenues 38,490,824 55,247 484,659 21,696 709,358 5,665,396 45,427,180 Motor vehicle in lieu American Rescue Plan Act Funds- COVID-19 The notes to the basic financial statements are an integral part of this statement. 20 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 66 of 200 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2022 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 3,495,944$ -$ -$ -$ -$ 10,295$ 3,506,239$ Public safety 15,393,654 - - - - 130,649 15,524,303 Community development 2,659,600 80,498 - - 5,800 290,383 3,036,281 2,516,081 - - - - 8,820 2,524,901 Parks and open space 948,473 - - - - 29,040 977,513 Public works 1,572,389 - - - - 1,294,323 2,866,712 Capital outlay 4,399,903 - 517,648 - - 4,007,519 8,925,070 Debt service: Principal - - - - 270,000 - 270,000 Interest - - - - 702,013 - 702,013 Total expenditures 30,986,044 80,498 517,648 - 977,813 5,771,029 38,333,032 Excess of revenues over (under) expenditures 7,504,780 (25,251) (32,989) 21,696 (268,455) (105,633) 7,094,148 Other Financing Sources (Uses): Transfers in 703,570 - - - - 1,629,234 2,332,804 Transfers out (212,033) - - - - (2,120,771) (2,332,804) Total other financing sources and uses 491,537 - - - - (491,537) - Net change in fund balances 7,996,317 (25,251) (32,989) 21,696 (268,455) (597,170) 7,094,148 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 Fund balances - June 30, 2022 25,332,470$ 5,849,423$ 2,817,013$ (718,145)$ 15,506,310$ 11,216,470$ 60,003,541$ Community, recreation and zoo services The notes to the basic financial statements are an integral part of this statement. 21 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 67 of 200 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, 2022 Total net change in fund balance - governmental funds 7,094,148$ 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 $8,848,860 is greater than depreciation expense $(1,798,901) in the period.7,049,959 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.(354,893) 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.270,000 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:(2,663) 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. 2,663 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 earned exceeded the amounts used by:(380,116) 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 actual employer contributions was:(1,130,065) 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. (30,174) The notes to the basic financial statements are an integral part of this statement. 22 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 68 of 200 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, 2022 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.(10,323)$ 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 $414,512 less the capital contributions from other governmental funds ($1,366,878).(952,366) Changes in net position - governmental activities 11,559,152$ The notes to the basic financial statements are an integral part of this statement. 23 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 69 of 200 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30, 2022 Wastewater Fund Transit Fund Totals ASSETS Current Assets: Cash and investments 9,060,492$ -$ 9,060,492$ 10,957,526$ Receivables: Federal distributions due - 430,635 430,635 - Due from County of San Luis Obispo 61,465 45 61,510 - Accrued interest 32,332 (607) 31,725 37,669 Other receivables 37,585 765 38,350 - Prepaid expenses 3,695 2,375 6,070 33,900 Total current assets 9,195,569 433,213 9,628,782 11,029,095 Capital Assets: Non-depreciable: Land 547,738 - 547,738 - Construction in progress 5,717,647 - 5,717,647 335,214 Depreciable: Vehicles and equipment 878,529 353,720 1,232,249 13,957,714 Structures and improvements 28,835,561 1,472,436 30,307,997 52,991,591 Accumulated depreciation (18,339,147) (968,061) (19,307,208) (22,143,696) Net capital assets 17,640,328 858,095 18,498,423 45,140,823 Total assets 26,835,897 1,291,308 28,127,205 56,169,918 DEFERRED OUTFLOWS Deferred outflows related to pensions 139,526 8,901 148,427 186,760 Total deferred outflows 139,526 8,901 148,427 186,760 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 24 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 70 of 200 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION (continued) June 30, 2022 Wastewater Fund Transit Fund Totals LIABILITIES Current Liabilities: Accounts payable 731,117$ 18,036$ 749,153$ 77,390$ Accrued salaries and benefits 20,825 1,432 22,257 29,675 Unearned revenue - 308,969 308,969 800 Due to other funds - 196,010 196,010 - Other payables - 1,926 1,926 - Noncurrent Liabilities: Noncurrent liabilities 461,529 40,443 501,972 535,535 Total liabilities 1,213,471 566,816 1,780,287 643,400 DEFERRED INFLOWS Deferred inflows related to pensions 438,912 20,024 458,936 715,336 Total deferred inflows 438,912 20,024 458,936 715,336 NET POSITION Net investment in capital assets 17,640,328 858,095 18,498,423 45,140,823 Unrestricted 7,682,712 (144,726) 7,537,986 9,857,119 Total net position 25,323,040$ 713,369$ 26,036,409$ 54,997,942$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 25 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 71 of 200 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2022 Wastewater Fund Transit Fund Totals Operating Revenues: Service fees 3,386,326$ 34,896$ 3,421,222$ 2,824,895$ Installation, extension, and connection fees 262,374 - 262,374 - Total operating revenues 3,648,700 34,896 3,683,596 2,824,895 Operating Expenses: Salaries and benefits 647,087 47,179 694,266 936,552 Office expense 3,766 309 4,075 1,131 Advertising 104 575 679 - Computer maintenance and replacement 40,784 25,159 65,943 3,700 Insurance 46,677 9,289 55,966 84,154 Occupancy and rental costs 21,436 3,290 24,726 55,010 Utilities 355,821 - 355,821 90,319 Communications 9,360 1,408 10,768 73,997 Operating supplies 96,028 679 96,707 47,250 Vehicle and equipment operating costs 80,148 59,804 139,952 13,524 Contract services 217,175 196,742 413,917 132,658 Professional development 3,995 - 3,995 2,838 Recruitment 1,875 25 1,900 302 Franchise fees 66,722 - 66,722 - Administrative charges 405,320 177,730 583,050 74,370 Special projects: Manhole rehabilitation projects 30,711 - 30,711 - Sewer System Management Plan Audit 2,912 - 2,912 - Proposition 218 majority protest-rate increase 1,875 - 1,875 - Desks - - - 2,075 Monitors - - - 265 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 26 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 72 of 200 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2022 Wastewater Fund Transit Fund Totals Operating Expenses (continued): Depreciation 706,733$ 116,357$ 823,090$ 2,026,908$ Total operating expenses 2,738,529 638,546 3,377,075 3,545,053 Operating income (loss)910,171 (603,650) 306,521 (720,158) Non-Operating Revenues (Expenses): Transportation Development Act Funds - Operations - 67,136 67,136 - Section 5307 Revenues - Operations - 64,060 64,060 - CARES Act funding - Operations - 223,593 223,593 - American Rescue Plan Act - Operations - 131,006 131,006 - Interest income (301,420) (878) (302,298) (318,635) Bus advertising sales - 1,500 1,500 - Gain / (loss) on sale of capital assets - - - 10,217 Total non-operating revenues (301,420) 486,417 184,997 (308,418) Change in net position prior to capital contributions 608,751 (117,233) 491,518 (1,028,576) Capital Contributions: Cash contributions from other funds - - - 76,210 Capital contributions from other funds - - - 1,366,878 Total capital contributions - - - 1,443,088 Change in net position 608,751 (117,233) 491,518 414,512 Total net position, June 30, 2021 24,714,289 830,602 25,544,891 54,583,430 Total net position, June 30, 2022 25,323,040$ 713,369$ 26,036,409$ 54,997,942$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 27 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 73 of 200 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2022 Wastewater Fund Transit Fund Totals Cash Flows From Operating Activities: Receipts from customers 3,651,718$ 34,263$ 3,685,981$ -$ Internal activity - payments from other funds - - - 2,824,895 Payments to suppliers of goods and services (1,465,523) (479,779) (1,945,302) (631,885) Payments for employee services (617,548) (44,800) (662,348) (839,473) Net cash provided (used) by operating activities 1,568,647 (490,316) 1,078,331 1,353,537 - 301,067 301,067 - - 1,500 1,500 - - 188,169 188,169 - Net cash provided by non-capital related financing activities - 490,736 490,736 - Acquisition of capital assets (4,828,294) - (4,828,294) (142,091) Cash contributions for capital purchases - - - 76,210 Proceeds from sale of capital assets - - - 28,400 Net cash used by capital and related financing activities (4,828,294) - (4,828,294) (37,481) 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 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 28 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 74 of 200 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2022 Wastewater Fund Transit Fund Totals Cash Flows From Investing Activities: Interest income (301,622)$ (420)$ (302,042)$ (332,587)$ Net cash provided (used) by investing activities (301,622) (420) (302,042) (332,587) Net increase (decrease) in cash and cash equivalents (3,561,269) - (3,561,269) 983,469 Cash and cash equivalents - June 30, 2021 12,621,761 - 12,621,761 9,974,057 Cash and cash equivalents - June 30, 2022 9,060,492$ -$ 9,060,492$ 10,957,526$ Operating income (loss)910,171$ (603,650)$ 306,521$ (720,158)$ Depreciation expense 706,733 116,357 823,090 2,026,908 Receivables, net 3,018 (633) 2,385 - Prepaid expenses (3,695) - (3,695) (20,201) Accounts payable (54,516) (4,769) (59,285) (30,191) Accrued salaries and benefits 428 167 595 5,466 Unearned revenue - - - 100 Other payables (22,603) - (22,603) - Deferred outflows (7,375) (320) (7,695) (12,255) Deferred inflows 404,031 17,500 421,531 671,375 Net pension liability (345,591) (14,968) (360,559) (574,271) Compensated absences (21,954) - (21,954) 6,764 Net cash provided (used) by operating activities 1,568,647$ (490,316)$ 1,078,331$ 1,353,537$ 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 75 of 200 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF FIDUCIARY NET POSITION June 30, 2022 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals ASSETS Cash and investments $ 1,579,446 $ - 1,579,446$ GASB 31 Adjustment to market (43,375) - (43,375) Restricted cash and investments: 851,598 - 851,598 Receivables: Accrued interest 4,669 - 4,669 Other receivables 350 - 350 Notes receivable - 200,000 200,000 Due from Successor Agency - 1,335,322 1,335,322 Total assets 2,392,688 1,535,322 3,928,010 LIABILITIES Accounts payable 2,538 - 2,538 Unearned revenue 604,698 - 604,698 Interest payable 302,428 - 302,428 Due to Successor Agency Housing Fund 1,335,322 - 1,335,322 Premium on bonds payable 20,683 - 20,683 2004 Bonds payable 8,000,000 - 8,000,000 14,100,000 - 14,100,000 Total liabilities 24,365,669 - 24,365,669 NET POSITION Held in trust for taxing agencies (21,972,981)$ 1,535,322$ (20,437,659)$ 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 76 of 200 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Fiscal Year Ended June 30, 2022 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals ADDITIONS Contributions: RPTTF distributions 1,677,711$ -$ 1,677,711$ Investment earnings: Interest (51,216) - (51,216) Total additions 1,626,495 - 1,626,495 DEDUCTIONS Payment on outstanding services contracts 2,420 - 2,420 Administrative costs 49,490 - 49,490 2004 Bond interest expense 395,753 - 395,753 2010 Bond reimbursement interest expense 705,149 - 705,149 Total deductions 1,152,812 - 1,152,812 Change in net position 473,683 - 473,683 Net position - June 30, 2021 (22,446,664) 1,535,322 (20,911,342) Net position - June 30, 2022 (21,972,981)$ 1,535,322$ (20,437,659)$ The notes to the basic financial statements are an integral part of this statement. 31 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 77 of 200 NOTES TO THE BASIC FINANCIAL STATEMENTS ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 78 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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, GASB Statement No. 80, and GASB Statement No. 90. 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 Statements 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 information 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 contributions 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 major individual enterprise funds are reported as separate columns in the fund financial statements. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 79 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 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. 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 80 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 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. 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 accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after 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 leases are reported as other financing sources. Proprietary funds distinguish operating revenues from nonoperating revenues. Operating revenues generally result from providing 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 81 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 position 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 82 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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. Contributed 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 requires 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 America, 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 are, therefore, considered cash equivalents for purposes of the statement of cash flows. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 83 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 infrastructure. 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 amount of $16,127,605 was netted against the liability account of $16,186,439 in fiscal year 2022. The net balance in the performance bond deposits liability account at June 30, 2022, was $58,834 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, such 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 $116,283 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 $35,651,208 is comprised of $486,856 for economic development to offset the impact of the impending closure of Pacific Gas and Electric’s Diablo Canyon Power Plant, $5,849,423 for affordable housing, $15,506,310 restricted for debt service, and $13,808,619 restricted for other Capital Project Funds and Special Revenue Funds. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 84 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Fund Balance (continued) Assigned Fund Balance The fund balance assigned for road projects of $224,134 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 2007/2008 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 specific future project; however, it is the City’s general policy to use restricted amounts first when both restricted and unrestricted 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 emergencies, 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 2021-2022. 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 85 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 115,553$ -$ -$ -$ -$ 730$ 116,283$ Restricted Public Safety - - - - - 2,865,440 2,865,440 Streets, Roads, and Drainage - - 2,817,013 - - 4,360,110 7,177,123 Parks, Open Space, and Recreation - - - - - 2,459,235 2,459,235 486,856 - - - - 1,306,821 1,793,677 Affordable Housing - 5,849,423 - - - - 5,849,423 Debt Service - - - - 15,506,310 - 15,506,310 Assigned Roads Projects - - - - - 224,134 224,134 Unassigned 24,730,061 - - (718,145) - - 24,011,916 Total Fund Balances 25,332,470$ 5,849,423$ 2,817,013$ (718,145)$ 15,506,310$ 11,216,470$ 60,003,541$ Other Nonmajor Governmental Funds Disclosure of Fund Balances Reported on Balance Sheet June 30, 2022 Community Development and Blight Elimination Deposits, prepaid items, and inventory ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 86 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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. 91 "Conduit Debt Obligations"The provisions of this statement are effective for fiscal years beginning after December 15, 2021. Statement No. 93 "Replacement of Interbank Offered Rates"The provisions 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 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. 98 "The Annual Comprehensive Financial Report" The provisions of this statement are effective for fiscal years beginning after December 15, 2021. Statement No. 99 "Omnibus 2022"The provisions of this statement are effective in April 2022 except for the provisions related to leases, PPPs, SBITAs, financial guarantees and derivative instruments. The provisions related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022. The provisions related to financial guarantees and derivative instruments are effective for fiscal years beginning after June 15, 2023. Statement No. 100"Accounting Changes and Error Corrections - an amendment of GASB Statement No. 62" The provisions of this statement are effective for fiscal years beginning after June 15, 2023. Statement No. 101"Compensated Absences"The provisions of this statement are effective for fiscal years beginning after December 15, 2023. 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 outflows 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 resources. A deferred inflow of resources is defined as an acquisition of net position by the City that is applicable to a future reporting period. The City has two items which qualify 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 87 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 pension expense, information about the fiduciary net position of the City of Atascadero’s California 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. 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 (718,145)$ ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 88 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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, 2022, consisted of the following: Pooled Cash and Investments: Cash in bank and on hand 639,543$ Investments 33,911,088 Local Agency Investment Fund (LAIF)26,719,700 Total Pooled Cash and Investments 61,270,331 Funds with Fiscal Agents: United States Treasury Money Fund 2,257,908 Total Funds with Fiscal Agents 2,257,908 Total Cash and Investments 63,528,239$ 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 50,588,295$ 9,060,492$ 1,536,071$ 61,184,858$ Cash and investments held by fiscal agents 1,406,310 - 851,598 2,257,908 Restricted certificates of deposit 85,473 - - 85,473 Total Cash and Investments 52,080,078$ 9,060,492$ 2,387,669$ 63,528,239$ ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 89 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 $366,055. The balance was insured by federal depository insurance. Certificates of Deposit totaling $13,150,112 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 90 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 used 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 ability 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 rates). 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, 2022, are as follows: June 30, 2022 Fair Value Quoted Prices in Active Markets for Identical Assets (Level1) Significant Other Observable Inputs (Level 2) Uncategorized (Level 3) U. S. Government Obligations 13,789,879$ -$ 13,789,879$ -$ Supranational Securities 3,465,320 - 3,465,320 - Municipal Securities 3,505,777 - 3,505,777 - Certificates of Deposit 13,150,112 - 13,150,112 - United States Treasury Money Fund 2,257,908 - 2,257,908 - 36,168,996 -$ 36,168,996$ -$ Investments measured at amortized cost Local Agency Investment Fund (LAIF)26,719,700 Total investments 62,888,696$ Fair values for investments are determined by using a matrix pricing technique. Matrix pricing is used to value securities based 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 investments. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 91 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 13,789,879$ 23% Supranational Securities 3,465,320 6% Municipal Securities 3,505,777 6% Certificates of Deposit 13,150,112 21% Local Agency Investment Fund (LAIF)26,719,700 44% Total Investments Managed by City 60,630,788$ 100% Investments Held by Fiscal Agents United States Treasury Money Fund 2,257,908$ 100% Total Investments Held by Fiscal Agents 2,257,908$ 100% Fair Value On Demand Within One Month One Month to One Year One to Five Years Investments U.S. Government Obligations 13,789,879$ -$ -$ 2,801,414$ 10,988,465$ Supranational Securities 3,465,320 - - 1,498,855 1,966,465 Municipal Securities 3,505,777 - - - 3,505,777 Certificates of Deposit 13,150,112 - - 2,365,221 10,784,891 * Local Agency Investment Fund (LAIF)26,719,700 26,719,700 - - - Investments Held by Fiscal Agents 2,257,908 2,257,908 **- - - Total Investments Managed by City 62,888,696$ 28,977,608$ -$ 6,665,490$ 27,245,598$ Percentage of Portfolio 100%46%0%11%43% * Included here is $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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 92 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 avoiding 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 backer. 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. The 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 13,789,879$ 13,789,879$ -$ Supranational Securities 3,465,320 3,465,320 - Municipal Securities 3,505,777 - 3,505,777 Certificates of Deposit 13,150,112 - 13,150,112 Local Agency Investment Fund (LAIF)26,719,700 - 26,719,700 Investments Held by Fiscal Agents 2,257,908 - 2,257,908 Total Investments Managed by City 62,888,696$ 17,255,199$ 45,633,497$ Rating as of June 30, 2022 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 93 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 securities 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 than 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 Moody’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 accounts. The minimum requirements for certificate of deposit investments shall be: o Investments and accrued interest shall never exceed the FDIC insurance limit in any one 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 Securities 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 obligations of any one bank. G. Funds with Fiscal Agents The City had $1,406,310 in cash and investments as of June 30, 2022, held by fiscal agents pledged for the payment or security of the 2010 Lease Revenue Bonds. There was an additional $851,598 held by fiscal agents for the 2004 Redevelopment Agency Tax Allocation Bonds in the Successor Agency to the Community Redevelopment Agency of Atascadero Private Purpose Trust Fund. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds, certificates, or leases, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of investments its fiscal agents may make. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 94 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 48 NOTE 4 – ADVANCES RECEIVABLE – SUCCESSOR AGENCY Receivable Fund Payable Fund Amount 2010 Bond Debt Service Fund Successor Agency General Fund 14,100,000$ Total 14,100,000$ Advances receivable of $14,100,000 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 bonds. With the dissolution of redevelopment, this is now a debt of the Successor Agency and the Successor Agency 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 delivered 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 $4,090,371 is outstanding in the In Lieu Low/Moderate Income Housing Fund. Developments meeting certain criteria must either pay an In-Lieu fee into the fund or provide “affordably” priced homes for sale to income qualified buyers. These homes are sold by developers at prices below fair market value and the City records notes receivable against the titles in the amounts equal to the difference between the reduced sales prices and the fair market values. The loans are either paid back on a pro-rata share of equity at the time the homes sell, or are forgiven after a period of 30 years of ownership by the same homeowner. The Notes Receivable amount includes loans for 22 homes in the Very Low Income category and 8 homes in the Low/Moderate Income category. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 95 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 49 NOTE 6 – CAPITAL ASSETS A. Capital Assets Additions and Retirements Capital assets activity in the Governmental Activities for the fiscal year ended June 30, 2022, was as follows: Balance June 30, 2021 Additions Deletions Transfers Between Assets Balance June 30, 2022 Governmental Activities Non-Depreciable Capital Assets Land 41,588,097$ 71,457$ -$ -$ 41,659,554$ Construction in progress 5,549,723 7,920,214 - (8,306,641) 5,163,296 Total non-depreciable capital assets 47,137,820 7,991,671 - (8,306,641) 46,822,850 Depreciable Capital Assets Vehicles and equipment 13,127,131 907,128 (182,576) 196,747 14,048,430 Structures and improvements 55,129,124 58,690 - 1,609,059 56,796,873 Infrastructure 74,009,505 33,462 (1,382,336) 6,500,835 79,161,466 Total depreciable capital assets 142,265,760 999,280 (1,564,912) 8,306,641 150,006,769 Less Accumulated Depreciation (52,242,593) (3,825,809) 1,191,835 - (54,876,567) Net depreciable capital assets 90,023,167 (2,826,529) (373,077) 8,306,641 95,130,202 Net governmental capital assets 137,160,987$ 5,165,142$ (373,077)$ -$ 141,953,052$ ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 96 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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, 2022, was as follows: Balance June 30, 2021 Additions Deletions Transfers Between Assets Balance June 30, 2022 Business-Type Activities Non-Depreciable Capital Assets Land 547,738$ -$ -$ -$ 547,738$ Construction in progress 1,791,495 4,686,924 - (760,772) 5,717,647 Total non-depreciable capital assets 2,339,233 4,686,924 - (760,772) 6,265,385 Depreciable Capital Assets Vehicles and equipment 1,232,249 - - - 1,232,249 Structures and improvements 29,405,855 141,370 - 760,772 30,307,997 Total depreciable capital assets 30,638,104 141,370 - 760,772 31,540,246 Less Accumulated Depreciation (18,484,118) (823,090) - - (19,307,208) Net depreciable capital assets 12,153,986 (681,720) - 760,772 12,233,038 Net business-type capital assets 14,493,219$ 4,005,204$ -$ -$ 18,498,423$ ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 97 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 345,684$ Public safety 710,634 Community development 227,429 Community, recreation & zoo services 383,352 Parks & open space 301,332 Public works 1,857,378 Total Depreciation Expense- Governmental Activities 3,825,809$ Sewer 706,733$ Transit 116,357 Total Depreciation Expense- Business-Type Activities 823,090$ Business-Type Activities: ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 98 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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, 2022, is as follows: Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Funds 47,676$ General Fund Transit Fund 196,010 Nonmajor Governmental Funds Fire Aerial Vehicle Impact Fees Fund 718,145 Total 961,831$ B. Interfund Transfers Interfund transfers were made as follows: Actual Amount Description 703,570$ Transfer from the Community Facilities District Fund to the General Fund for fire, police and park services 208,033 Transfer from the General Fund to the Gas Tax Fund for the cost of Streets Department operations 1,417,201 Transfer from the Gas Tax Fund to the Local Transportation Fund for the El Camino Real South Rehabilitation Project 2,600 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 2,332,804$ ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 99 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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, 2022, total $1,898,086 for governmental activities and $13,331 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 2023 $ 275,000 $ 689,737 2024 295,000 676,963 2025 305,000 664,581 2026 315,000 651,800 2027 330,000 637,250 2028-2032 1,920,000 2,914,000 2033-2037 4,190,000 2,285,250 2038-2041 6,470,000 667,000 $ 14,100,000 $ 9,186,581 2010 Lease Revenue Bonds ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 100 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 54 NOTE 8 – LONG-TERM LIABILITIES (continued) C. Changes in Long-Term Liabilities Long-term liability activity for the fiscal year ended June 30, 2022, was as follows: Balance June 30, 2021 Additions Payments Balance June 30, 2022 Due Within One Year Governmental Activities: Bonds Payable: 14,370,000$ -$ (270,000)$ 14,100,000$ 275,000$ Compensated Absences 1,511,206 1,423,391 (1,036,511) 1,898,086 - Premium on 2010 Lease Revenue Bonds 57,458 - (2,982) 54,476 2,982 (47,908) 35,254 (5,080) (17,734) - Net Pension Liability 29,776,861 - (11,506,303) 18,270,558 - Other Post Employment Benefits Liability 223,297 17,680 (7,357) 233,620 - Total Governmental Activities 45,890,914$ 1,476,325$ (12,828,233)$ $ 34,539,006 277,982$ Business-type Activities: Compensated Absences 35,285$ 31,180$ (53,134)$ 13,331$ -$ Net Pension Liability 849,200 - (360,559) 488,641 - Total Business-type Activities $ 884,485 31,180$ $ (413,693) $ 501,972 -$ 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 101 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 others). 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 statute 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 specified by the Public Employees’ Retirement Law. The rate plan provisions and benefits in effect at June 30, 2022, 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%7.25% Required employer contribution rates 12.99%11.06%7.73% Miscellaneous Plan ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 102 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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%13.00% Required employer contribution rates 23.71%20.64%13.13% Safety Plan Contributions- Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for 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, 2022, were $4,236,582. 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 fund was $2,618,886 in fiscal year 2022. B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $18,759,199. 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, 2021, 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, 2020, rolled forward to June 30, 2021, 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 103 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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, 2021, and 2020, was as follows: June 30, 2022 June 30, 2021 Measurement Date 6/30/2021 6/30/2020 Percentage of Plan (PERF C) Net Pension Liability 0.34686%0.28148%0.06538% Change: Increase/ (Decrease) Percentage share of Plan Proportionate Percentage Share of Net Pension Liability For the fiscal year ended June 30, 2022, the City recognized pension expense of $5,504,773. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 2,751,569$ -$ Net differences between projected and actual earnings on plan investments - (13,310,464) Change in employer's proportion 274,536 - Differences between the employer's contributions and the employer's proportionate share of contributions - (824,251) Pension contributions subsequent to measurement date 4,236,582 - Total 7,262,687$ (14,134,715)$ All Plans ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 104 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 58 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) $4,236,582 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended June 30, Deferred Outflows / (Inflows) of Resources 2023 (2,091,194)$ 2024 (2,408,906) 2025 (2,937,818) 2026 (3,670,692) Actuarial Assumptions – For the measurement period ended June 30, 2021, the total pension liabilities were determined by rolling forward the June 30, 2020, total pension liability. The June 30, 2021, 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 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. Plan June 30, 2020 June 30, 2021 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 105 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 projected 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 returns of 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 106 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 Public equity 50.0%4.80%5.98% Fixed income 28.0%1.00%2.62% Inflation assets 0.0%0.77%1.81% Private equity 8.0%6.30%7.23% Real assets 13.0%3.75%4.93% Liquidity 1.0%0.00%-0.92% Total 100.0% (1) Figures are based on previous 2017 ALM. (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 34,072,278$ 18,759,199$ 6,145,537$ Discount Rate 6/30/2021 6/30/2022 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 107 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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, 2022, 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 $14,594, and total contributions from the City were $7,297. 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 have served for eight years with the City. The benefit extends between the date of retirement and age 65. Currently, there are four people that received benefits in fiscal year 2021/2022, and fourteen 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 administrative costs. These expenditures are paid as they come due. In fiscal year ended June 30, 2022, the City’s total contributions were $7,357. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 108 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 62 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (continued) Employees Covered As of June 30, 2022, the following current and former employees were covered by the benefit under the plan. Active members 11 Inactive members 3 Beneficiaries 4 Total 18 Total OPEB Liability The City has elected to calculate the OPEB liability and related information using the alternative measurement method permitted by GASB Statement 75 for employers in plans with fewer than one hundred total plan members. The City’s OPEB liability was measured as of June 30, 2022, and the total OPEB used to calculate the OPEB liability was from the City’s valuation as of June 30, 2022. Changes in the OPEB Liability Total OPEB Liability Balance at June 30, 2021 (valuation date June 30, 2021)223,297$ Changes recognized for the measurement period: Service Cost 10,981 Interest 6,699 Benefit payments (7,357) Net changes 10,323 Balance at June 30, 2022 (valuation date June 30, 2022)233,620$ ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 109 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 234,397$ 233,620$ 232,959$ 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 healthcare 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 232,959$ 233,620$ 234,397$ 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 employer 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 active 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 active 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 110 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 period at June 30, 2022, was twenty-two 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 approval 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 124 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 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 $100,000 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 $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) Incurred 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 111 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 losses also have a $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 2021-22 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 through 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 insured 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 $94,864,771. 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 $2,500 deductible. The fidelity coverage is provided through the Authority. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 112 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 66 NOTE 12 – RISK MANAGEMENT (continued) C. Purchased Insurance (continued) Special Event Tenant User Liability Insurance The City of Atascadero further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Atascadero according to a schedule. The City of Atascadero then pays for the insurance. The insurance is facilitated by the Authority. D. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2021-22. E. Unemployment The City is fully self-insured for unemployment claims. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 113 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 67 NOTE 12 – RISK MANAGEMENT (continued) F. Self Insurance The City retains the risk for losses incurred prior to joining the Authority. Several member agencies of the now dissolved Central Coast Cities Self-Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance for claims prior to joining the Authority. Losses are debited and investment income is credited to specific member accounts. The City has not incurred any losses in excess of insurance coverage. Workers' Compensation Interest earnings and other income 194$ Claims expense 35,254 Estimated liability for reported claims and settlement expenses (106,681) Assets on deposit 124,415 Assets in excess of (less than) liabilities 17,734$ Workers' Compensation Deposits 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 Claim payments and related expenditures (35,254) Decrease in estimated claims liability June 30, 2022 4,684 Deposits and interest earnings 396 Deposits (unpaid claims liability) June 30, 2022 17,734$ Self-insurance activity as of and for the year ended June 30, 2022, is summarized as follows: Changes in the balances of claim liabilities during the past two fiscal years are as follows: ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 114 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 agencies. 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 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 either the Outfront Billboard or the so-called Reconstructed Original Billboard. A hearing on the Plaintiff’s Motion for a Writ of Mandate is set for May 23, 2023 at 9:00 am in Department P2 located at the Paso Robles branch of the San Luis Obispo Superior Court. 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 Section 1983). The Petition prays for a preliminary injury, writ of mandate and monetary damages. The City sent a letter to the attorney for Newton citing a number of defects in the Petition and the attorney agreed to file a First Amended Petition and Complaint which was filed on or about September 20, 2021 which only names the City as a defendant and includes the same basic allegations and the same Prayer as the Petition. The City filed an Answer to the First Amended Petition denying the material allegations and raising appropriate affirmative defenses. The City prepared the Administrative Record which has been filed with the Court. The Administrative Record includes records of the City relating to the self-storage and General Plan Amendment issues. There is a hearing set for March 10, 2023 at 10:30 am in Department P2 located at the Paso Robles branch of the San Luis Obispo Superior Court. This hearing is on the first two causes of action for a writ of mandate regarding the denial of the self-storage project and the General Plan amendment issue. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 115 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 69 NOTE 13 – CONTINGENCIES AND COMMITMENTS (continued) Construction and other significant commitments as of June 30, 2022, including encumbrances outstanding at fiscal year-end, are as follows: 100 General Fund 5,202,884$ 201 Community Facilities District Fund 2,498 202 Apple Valley Street & Storm Drain Assessment District Fund 1,738 203 Apple Valley Landscape & Lighting Assessment District Fund 2,222 204 Las Lomas Street & Storm Drain Assessment District Fund 1,738 205 Las Lomas Landscape & Lighting Assessment District Fund 2,222 206 De Anza Street & Storm Drain Assessment District Fund 1,738 207 De Anza Landscape & Lighting Assessment District Fund 2,222 240 Community Development Block Grant Fund 3,355 265 Local Transportation Fund 586,418 281 Circulation System Fees Fund 576,792 284 Law Enforcement Facilities Fees Fund 138,262 527 Wastewater Fund 538,640 680 Vehicle and Equipment Replacement Fund 616,177 690 Technology Fund 166,075 Total 7,842,981$ Capital Commitments Fiscal Year 2021/2022 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 116 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 consists 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, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislation. 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 of 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 $35,948,188 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 “successor 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 117 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 into 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 all 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 redevelopment 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 body 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 City 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 118 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 transfers 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, 2022. 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 Health 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 approved 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 2020-2021 fiscal year. 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 achieve 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. Annual principal payments on the advance are required between fiscal years 2015 and 2041, at interest rates ranging from 3.0% to 5.0%. See Note 8B – Long Term Liabilities, 2010 Lease Revenue Bonds, for additional information. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 119 of 200 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2022 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 downtown 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 2023 $ 455,000 $ 383,677 2024 475,000 361,634 2025 500,000 337,869 2026 525,000 312,884 2027 550,000 286,681 2028-2032 3,180,000 990,258 2033-2035 2,315,000 177,375 $ 8,000,000 $ 2,850,378 2004 Redevelopment Agency Tax Allocation Bonds NOTE 16 – American Rescue Plan Act The Federal American Rescue Plan Act (ARPA) was signed into law on March 11, 2021, to provide additional financial relief in the wake of the COVID-19 pandemic. ARPA includes a significant amount of “Coronavirus State and Local Fiscal Recovery Funds” (SLFRF) for state and local governments to use over a period of several years. The funds are being distributed in two equal installments, or “tranches”. Atascadero received the first distribution in July 2021 and the second in July 2022. Smaller cities like Atascadero that are not considered “metropolitan”, are referred to as non-entitlement units of local government, or “NEUs”. Funds may be used for specific purposes as designated in the U.S. Department of Treasury’s Final Rule. The Final Rule offers a standard allowance for revenue loss of up to $10 million. Recipients that select the standard allowance may use the funds for government services. The City is eligible to use the standard deduction for revenue loss and may use all funding for general government purposes. The City’s total ARPA allocation is $7,194,580, half of which was received and used in fiscal year 2021-2022. The second half is in General Fund Deferred Inflows. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 120 of 200 REQUIRED SUPPLEMENTARY INFORMATION ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 121 of 200 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - SUMMARY BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2022 Original Final Actual Amounts Revenues: Secured and unsecured property taxes 11,162,380$ 11,162,380$ 11,213,632$ 51,252$ Taxes based on sales and use 12,328,040 12,328,040 14,621,612 2,293,572 Franchise tax 1,235,260 1,235,260 1,301,298 66,038 Other taxes 1,828,010 1,828,010 2,503,816 675,806 Licenses and permits 667,470 667,470 787,086 119,616 Intergovernmental revenues: Motor vehicle in-lieu and related payments 22,370 22,370 34,222 11,852 American Rescue Plan Act Funds- COVID-19 - - 3,597,290 3,597,290 Grants 93,950 384,760 385,671 911 Other governmental revenues 185,260 185,260 198,142 12,882 Charges for services: Public safety 466,600 733,280 924,146 190,866 Development 589,950 589,950 643,780 53,830 Recreation, parks, pavilion, and zoo 808,920 843,810 1,237,355 393,545 Other services 58,420 58,420 70,945 12,525 Fines and forfeitures 60,500 60,500 58,580 (1,920) Use of money and property 112,320 112,320 (641,535) (753,855) Other revenues 1,312,110 1,324,370 1,554,784 230,414 Total revenues 30,931,560 31,536,200 38,490,824 6,954,624 Expenditures: Employee services 19,310,500 19,421,040 18,665,393 755,647 Operating supplies and services 7,480,670 7,600,060 7,310,505 289,555 Special purchases, projects, and community funding 1,167,810 2,064,960 610,243 1,454,717 Capital outlay 8,413,160 9,137,130 4,399,903 4,737,227 Total expenditures 36,372,140 38,223,190 30,986,044 7,237,146 Excess of revenues over (under) expenditures (5,440,580) (6,686,990) 7,504,780 14,191,770 Budget Variance with Final Budget Positive (Negative) 74 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 122 of 200 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, 2022 Original Final Actual Amounts Other Financing Sources (Uses): Transfers in 703,570$ 703,570$ 703,570$ -$ Transfers out (410,310) (410,310) (212,033) 198,277 Total other financing sources and uses 293,260 293,260 491,537 198,277 (5,147,320)$ (6,393,730)$ 7,996,317 14,390,047$ Fund balance - June 30, 2021 17,336,153 Fund balance - June 30, 2022 25,332,470$ Excess of revenue and other sources over (under) expenditures and other uses Budget Variance with Final Budget Positive (Negative) 75 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 123 of 200 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, 2022 Original Final Actual Amounts Revenues: Taxes: Property taxes: Secured property tax 6,940,740$ 6,940,740$ 6,992,373$ 51,633$ Property tax in lieu of VLF 3,296,480 3,296,480 3,290,304 (6,176) Unsecured property taxes 271,260 271,260 262,581 (8,679) Supplemental property taxes 170,000 170,000 186,227 16,227 483,900 483,900 497,884 13,984 Prior year secured and unsecured - - (15,094) (15,094) Property tax penalties and interest - - (643) (643) Taxes based on sales: Sales and use taxes 4,474,040 4,474,040 5,169,751 695,711 Measure D-20 sales tax 5,236,000 5,236,000 6,239,847 1,003,847 Measure F-14 sales tax 2,618,000 2,618,000 3,212,014 594,014 Transient occupancy tax 1,461,600 1,461,600 2,049,160 587,560 Franchise taxes: Cable television franchise fees 257,930 257,930 254,115 (3,815) Electricity franchise fees 297,060 297,060 290,103 (6,957) Garbage disposal franchise fees 515,000 515,000 565,400 50,400 Landfill franchise fees 15,080 15,080 18,691 3,611 Gas franchise fees 83,950 83,950 106,267 22,317 Wastewater franchise fees 66,240 66,240 66,722 482 Business licenses 175,550 175,550 173,525 (2,025) Property transfer tax 160,000 160,000 230,626 70,626 Cannabis business tax 30,860 30,860 50,505 19,645 Total Taxes 26,553,690 26,553,690 29,640,358 3,086,668 Licenses and Permits: Construction permits 570,200 570,200 682,877 112,677 Grading and drainage permits 42,130 42,130 36,150 (5,980) Encroachment permits 44,940 44,940 57,161 12,221 Tree application fees 8,200 8,200 7,994 (206) Planning inspections 2,000 2,000 2,904 904 Total Licenses and Permits 667,470 667,470 787,086 119,616 Budget Variance with Final Budget Positive (Negative) Redevelopment Agency Dissolution- residual distribution 76 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 124 of 200 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, 2022 Original Final Actual Amounts Revenues (continued): Intergovernmental Revenues: Motor vehicle in-lieu 22,370$ 22,370$ 34,222$ 11,852$ American Rescue Plan Act Funds- COVID-19 - - 3,597,290 3,597,290 Homeowners' tax relief 44,760 44,760 43,812 (948) State mandated costs 5,000 5,000 14,148 9,148 P.O.S.T. reimbursement 10,000 10,000 14,686 4,686 School Resources Officer 80,000 80,000 80,000 - 45,500 45,500 45,496 (4) Grants: Assistance to Fire Fighters Grant - 6,610 6,606 (4) SAFER Federal Fire Grant 12,280 12,280 11,346 (934) - 82,000 82,000 - Office of Traffic Safety-2021 Traffic Police Grant - 2,760 2,755 (5) Office of Traffic Safety-2021 DUI Police Grant - 4,630 4,621 (9) Office of Traffic Safety-2022 STEP Grant-Traffic - 10,020 10,012 (8) Office of Traffic Safety-2022 DUI Police Grant - 3,040 3,032 (8) Fire Safe Council - Fuel Management - 30,780 30,771 (9) Fire Safe Council - Wildfire Consultations - 7,270 11,135 3,865 - 1,660 1,659 (1) HCD- Housing Element & Inclusionary Policy 81,670 81,670 62,431 (19,239) HCD- LEAP Mixed Use Develop Standards - 150 148 (2) HCD- REAP Jurisdictional Zoning Grant - 16,270 19,348 3,078 HCD- REAP Regional ADU's - 125,620 139,807 14,187 Total Intergovernmental Revenues 301,580 592,390 4,215,325 3,622,935 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 Office of Traffic Safety-2022 Fire Dept Extrication Equipment Grant 77 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 125 of 200 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, 2022 Original Final Actual Amounts Revenues (continued): Charges for Services: Public safety: First response charges 128,550$ 128,550$ 129,126$ 576$ Weed abatement services 37,780 60,260 60,263 3 Mutual Aid 250,000 494,200 693,598 199,398 Police/Fire false alarms 6,200 6,200 8,004 1,804 Castlerock Communication Site Lease 16,020 16,020 16,041 21 Fingerprints 5,500 5,500 420 (5,080) Vehicle release fees 16,000 16,000 11,590 (4,410) Other public safety services 6,550 6,550 5,104 (1,446) Development: Zoning fees 44,300 44,300 27,837 (16,463) Subdivision fees- Planning 33,000 33,000 55,365 22,365 Subdivision fees- Public Works 2,030 2,030 12,198 10,168 Appeals 1,250 1,250 2,430 1,180 Assessment district formations/annexations - - 5,613 5,613 Planning review 44,940 44,940 54,876 9,936 Building plan check fees 280,890 280,890 308,423 27,533 Public Works plan check fees and inspections 123,590 123,590 113,232 (10,358) Stormwater permit compliance inspection 5,000 5,000 - (5,000) Fire plan check and inspection fees 51,740 51,740 48,821 (2,919) Record compilation service - - 28 28 Other development fees 3,210 3,210 14,957 11,747 Recreation: Advertising 3,900 3,900 2,983 (917) Adult sports 35,000 35,000 19,535 (15,465) Youth sports 55,000 58,510 72,605 14,095 Classes 100,000 100,000 96,810 (3,190) Special events 49,500 80,880 84,373 3,493 Teen Center membership 350 350 6,282 5,932 Budget Variance with Final Budget Positive (Negative) 78 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 126 of 200 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, 2022 Original Final Actual Amounts Revenues (continued): Charges for Services (continued): Rentals and concessions: Pavilion facility rentals 73,120$ 73,120$ 132,590$ 59,470$ Other Pavilion rents and concessions 4,040 4,040 1 (4,039) Colony Park Community Center rentals 16,260 16,260 26,956 10,696 Zoo Event Center rental - - 638 638 Outdoor court rentals - - 180 180 Park charges 21,890 21,890 48,852 26,962 Zoo: Zoo admissions 311,150 311,150 469,900 158,750 Zoo educational programs 2,000 2,000 12,220 10,220 Zoo gift shop 109,710 109,710 213,999 104,289 Special events- Zoo 27,000 27,000 49,060 22,060 Other Zoo revenues - - 371 371 Administrative: Copy and mailing fees 7,410 7,410 7,801 391 Filming permit - - 273 273 Document imaging fee 16,010 16,010 21,086 5,076 Business license application fees 35,000 35,000 41,785 6,785 Total Charges for Services 1,923,890 2,225,460 2,876,226 650,766 Fines and Forfeitures: Motor vehicle fines 42,000 42,000 28,487 (13,513) Misdemeanor and other minor fines 3,140 3,140 425 (2,715) Parking fines 2,000 2,000 630 (1,370) Code enforcement and fire fines 4,800 4,800 600 (4,200) Business license penalties 7,960 7,960 13,543 5,583 Other penalties 600 600 14,895 14,295 Total Fines and Forfeitures 60,500 60,500 58,580 (1,920) Use of Money and Property: Interest 56,000 56,000 177,972 121,972 Adjustment to fair value-GASB 31 - - (703,306) (703,306) Lease Revenue- 2010 Bonds 5,000 5,000 - (5,000) Variance with Final Budget Positive (Negative) Budget 79 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 127 of 200 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, 2022 Original Final Actual Amounts Revenues (continued): Use of Money and Property (continued): Interest on Measure F-14 Funds 51,320$ 51,320$ 41,533$ (9,787)$ Measure F-14 Funds adjustment to fair value - - (157,734) (157,734) Total Use of Money and Property 112,320 112,320 (641,535) (753,855) Other Revenues: Interfund administrative charges General overhead charges 445,690 445,690 445,690 - Staffing charges for other funds 629,210 629,210 622,254 (6,956) Staffing charges for capital projects 135,470 135,470 230,398 94,928 Staffing charges for CDBG administration - - 10,026 10,026 Administrative charges- Third Parties 3,020 3,020 6,225 3,205 Administrative charges- Successor Agency 49,490 49,490 49,490 - Workers' compensation reimbursement 6,390 6,390 36,215 29,825 Miscellaneous revenue 18,340 18,340 89,097 70,757 Donations: Police - - 1,418 1,418 Fire - 130 123 (7) Recreation - 1,250 1,248 (2) Parks - 6,830 6,826 (4) Other donations - 20 17 (3) Friends of Zoo Donations: Memberships 23,000 23,000 49,468 26,468 Other Zoo donations 1,500 5,530 6,289 759 Total Other Revenues 1,312,110 1,324,370 1,554,784 230,414 Total Revenues 30,931,560 31,536,200 38,490,824 6,954,624 Variance with Final Budget Positive (Negative) Budget 80 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 128 of 200 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, 2022 Original Final Actual Amounts Expenditures: City Council: Salaries and benefits 75,320$ 77,200$ 77,187$ 13$ Office expense 150 350 347 3 Advertising 800 10 3 7 Computer maintenance and replacement 13,360 13,360 13,360 - Occupancy 80,230 80,230 80,230 - Communications 420 210 205 5 Operating supplies 3,770 3,220 3,213 7 Vehicle and equipment operating costs 610 80 - 80 Contract services 37,230 37,230 36,000 1,230 Professional development 24,030 24,030 14,440 9,590 Community outreach 52,840 52,840 39,304 13,536 LAFCO contribution 19,380 19,380 16,758 2,622 Special projects and community funding: Essentialism Evaluation 60,000 60,000 - 60,000 Total City Council 368,140 368,140 281,047 87,093 City Clerk: Office expense 650 650 479 171 Advertising 5,410 5,410 2,168 3,242 Contract services 6,100 5,960 3,015 2,945 Professional development 6,380 6,380 415 5,965 Municipal election 300 440 437 3 Total City Clerk 18,840 18,840 6,514 12,326 City Treasurer: Salaries and benefits 5,700 6,540 6,095 445 Contract services 11,340 11,890 11,890 - Total City Treasurer 17,040 18,430 17,985 445 Budget Variance with Final Budget Positive (Negative) 81 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 129 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): City Attorney: Office expense 80$ 80$ 1$ 79$ Occupancy 5,810 5,810 5,810 - Communications 80 80 37 43 Contract services 290,700 236,040 223,069 12,971 Special projects and community funding: Castlerock litigation costs - 1,900 1,900 - Newton litigation costs - 128,290 128,286 4 Sunderland litigation costs - 8,670 8,663 7 California Voting Rights Act litigation costs - 15,800 15,798 2 Total City Attorney 296,670 396,670 383,564 13,106 City Manager: Salaries and benefits 1,242,500 1,145,110 1,110,127 34,983 Office expense 8,380 9,480 9,480 - Computer maintenance and replacement 68,190 68,340 68,334 6 Insurance 24,420 24,420 24,386 34 Occupancy 55,010 55,010 54,830 180 Communications 2,220 2,220 1,816 404 Operating supplies 10,210 10,210 9,345 865 Vehicle and equipment operating costs 6,470 4,890 3,636 1,254 Contract services 41,090 28,700 6,946 21,754 Professional development 23,050 22,200 9,276 12,924 Citywide training 510 7,140 100 7,040 Recruitment 7,140 1,690 1,684 6 Employee development 1,680 1,990 1,156 834 Contingency 100,000 38,130 - 38,130 Special projects and community funding: Grant assessement and writing 35,000 35,000 - 35,000 Senate Bill 1383 consulting services - 10,000 10,000 - Opportunities Fund 70,000 70,000 - 70,000 Desks - 2,080 2,075 5 Budget Variance with Final Budget Positive (Negative) 82 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 130 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): City Manager (continued): Capital Outlay: Computer- new 1,100$ 1,100$ -$ 1,100$ Total City Manager 1,696,970 1,537,710 1,313,191 224,519 Promotions, Marketing and Outreach Salaries and benefits 690 360 352 8 Office expense 6,050 6,050 6,035 15 Advertising 80,270 81,770 81,763 7 Computer maintenance and replacement 230 240 240 - Operating supplies 52,510 52,510 52,497 13 Vehicle and equipment operating costs 470 470 454 16 Contract services 70,000 91,820 91,812 8 Professional development 1,360 3,720 3,720 - Total Promotions, Marketing and Outreach 211,580 236,940 236,873 67 Administrative Services: Salaries and benefits 914,290 914,040 838,792 75,248 Office expense 14,040 14,670 14,661 9 Advertising 400 3,040 3,037 3 Computer maintenance and replacement 93,420 93,430 93,424 6 Insurance 25,490 25,530 25,525 5 Occupancy 75,320 75,280 75,280 - Communications 1,000 870 843 27 Operating supplies 300 2,380 2,372 8 Vehicle and equipment operating costs 3,600 3,600 3,600 - Contract services 173,530 182,060 182,055 5 Professional development 7,350 1,120 1,115 5 Recruitment 600 2,070 2,066 4 Contingency 5,000 5,000 - 5,000 Special purchases, projects, and studies: Cost allocation study update 16,220 16,220 14,000 2,220 Development impact fee study 10,000 10,000 - 10,000 Budget Variance with Final Budget Positive (Negative) 83 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 131 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): Administrative Services (continued): Capital Outlay: Credit card acceptance program 40,000$ 40,000$ -$ 40,000$ Total Administrative Services 1,380,560 1,389,310 1,256,770 132,540 Police: Salaries and benefits 7,582,790 7,596,140 7,069,748 526,392 Office expense 13,700 15,640 15,632 8 Computer maintenance and replacement 468,380 483,090 483,082 8 Insurance 344,640 344,640 344,576 64 Occupancy 57,290 66,350 66,343 7 Utilities 45,220 52,000 51,995 5 Communications 36,850 36,850 30,487 6,363 Operating supplies 21,960 26,570 26,568 2 Vehicle and equipment operating costs 477,760 477,760 470,436 7,324 Contract services 701,350 624,380 566,663 57,717 Professional development 15,110 17,510 17,503 7 Recruitment 11,200 38,570 38,569 1 Contingency 10,000 10,000 - 10,000 Capital Outlay: CAD/RMS software 600,000 600,000 133,011 466,989 Communications system upgrade - 9,900 9,899 1 Replace radios 227,700 244,290 244,284 6 10,613,950 10,643,690 9,568,796 1,074,894 Police Grants: Salaries and benefits - 11,000 10,979 21 Operating supplies 1,800 2,740 2,724 16 Contract services 2,320 - - - Professional development 34,380 37,260 35,792 1,468 Capital Outlay: Radar trailer - 9,800 9,799 1 38,500 60,800 59,294 1,506 Total Police 10,652,450 10,704,490 9,628,090 1,076,400 Budget Variance with Final Budget Positive (Negative) 84 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 132 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): Fire: Salaries and benefits 4,351,580$ 4,441,510$ 4,441,476$ 34$ Office expense 3,750 4,020 4,019 1 Computer maintenance and replacement 236,310 227,010 227,008 2 Insurance 117,060 116,920 116,919 1 Occupancy 81,900 77,970 77,964 6 Utilities 24,000 30,270 30,264 6 Communications 16,350 14,340 14,334 6 Operating supplies 62,150 66,020 66,010 10 502,450 522,470 522,470 - Contract services 21,350 22,860 22,860 - Professional development 23,250 28,460 28,455 5 Recruitment 2,000 740 730 10 Contingency 10,000 - - - Special purchases, projects, and studies: Cabinets - 200 199 1 Washing machine/dryer - 590 585 5 Fire field equipment- replace chain saws 4,910 4,910 2,688 2,222 - 490 489 1 Roofing projects 4,000 4,000 3,875 125 Comprehensive evacuation plan 22,520 22,520 9,301 13,219 EMS system valuation study - 3,030 3,022 8 Capital outlay: 180,000 180,000 - 180,000 60,000 60,000 59,888 112 253,000 236,420 236,416 4 750,000 750,000 - 750,000 - 4,470 4,470 - 6,726,580 6,819,220 5,873,442 945,778 Mutual Aid Program: Salaries and benefits 138,140 385,460 385,434 26 Operating supplies 15,000 16,970 16,966 4 Vehicle and equipment operating costs 5,200 - - - 158,340 402,430 402,400 30 Radio repeater project Ice machine Budget Variance with Final Budget Positive (Negative) Vehicle and equipment operating costs Vehicle replacement Replace radios Fire station #1 rebuild Cash contribution to Vehicle and Equipment Replacement Fund for replacement vehicle 85 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 133 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): Weed Abatement and Other Fire Programs: Salaries and benefits 37,820$ 44,550$ 42,604$ 1,946$ Office expense 900 3,360 3,353 7 Advertising 400 - - - Operating supplies - 190 175 15 Contract services 71,430 128,950 128,939 11 Special purchases, projects, and studies: COVID-19 emergency protective measures - 7,340 7,340 - Capital outlay: Extrication equipment - 82,000 82,000 - 110,550 266,390 264,411 1,979 Total Fire 6,995,470 7,488,040 6,540,253 947,787 Community Development: Salaries and benefits 1,556,410 1,500,770 1,487,078 13,692 Office expense 11,780 20,270 20,261 9 Advertising 4,700 5,610 5,605 5 Computer maintenance and replacement 158,410 158,900 158,895 5 Insurance 38,210 38,210 38,171 39 Occupancy 83,910 83,910 83,910 - Communications 2,800 4,780 4,770 10 Operating supplies 3,250 1,570 1,561 9 Vehicle and equipment operating costs 15,040 17,310 17,308 2 Contract services 96,500 128,350 128,345 5 Professional development 13,400 10,690 10,688 2 Recruitment 570 1,160 1,157 3 Contingency 5,000 2,690 - 2,690 Special purchases, projects, and studies: Desks - 4,310 4,310 - SB2-Planning grants program 100,000 100,000 - 100,000 General Plan update 450,000 591,800 53,710 538,090 Housing Element and Inclusionary Policy 81,670 81,670 59,856 21,814 LEAP Mixed Use Development Standards - 150 148 2 REAP Jurisdictional Zoning grant - 16,270 16,269 1 REAP Regional ADU's - 125,620 125,613 7 Capital outlay: Electronic plan review equipment 10,000 11,020 11,015 5 Total Community Development 2,631,650 2,905,060 2,228,670 676,390 Budget Variance with Final Budget Positive (Negative) 86 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 134 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): Central Reception: Salaries and benefits 78,360$ 78,590$ 58,250$ 20,340$ Office expense 1,000 960 489 471 Computer maintenance and replacement 19,550 19,550 19,550 - Insurance 2,310 2,310 2,302 8 Occupancy 64,190 64,190 64,190 - Communications 380 380 282 98 Operating supplies 50 90 87 3 Vehicle and equipment operating costs 50 50 - 50 Professional development 250 250 - 250 Recruitment 150 150 25 125 Capital outlay: Computer- new 2,200 2,200 1,334 866 Scanner/Printer- new 2,000 2,000 - 2,000 Total Central Reception 170,490 170,720 146,509 24,211 Economic and Business Development: Salaries and benefits 149,960 180,030 159,220 20,810 Computer maintenance and replacement 3,290 3,290 3,290 - Occupancy 4,060 4,060 4,060 - Chamber of Commerce 120,000 120,000 120,000 - Business development 21,490 21,490 10,200 11,290 Special purchases, projects, and studies: Broadband enhancement project - 388,110 - 388,110 Total Economic and Business Development 298,800 716,980 296,770 420,210 Recreation: Salaries and benefits 373,430 367,600 358,785 8,815 Office expense 4,450 10,270 10,240 30 Advertising 23,730 17,640 17,575 65 Computer maintenance and replacement 27,170 26,710 26,710 - Insurance 20,250 24,170 24,164 6 Occupancy 47,950 45,410 45,404 6 Utilities 3,740 4,920 4,912 8 Communications 1,120 820 805 15 Operating supplies 28,500 30,770 28,329 2,441 Budget Variance with Final Budget Positive (Negative) 87 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 135 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): Recreation (continued): Vehicle and equipment operating costs 4,360$ 3,920$ 3,918$ 2$ Contract services 123,000 128,530 107,708 20,822 Professional development 4,890 4,520 4,293 227 Recruitment 650 2,240 2,233 7 Contingency 2,500 - - - Special purchases, projects and studies: Youth scholarships - 250 248 2 Total Recreation 665,740 667,770 635,324 32,446 Community Center: Salaries and benefits 52,280 46,900 46,886 14 Office expense 1,350 1,470 1,467 3 Advertising 200 10 2 8 Computer maintenance and replacement 10,150 10,150 10,150 - Insurance 20,980 21,320 21,313 7 Occupancy 140,010 140,010 140,010 - Utilities 46,700 51,570 51,565 5 Communications 2,450 2,530 2,513 17 Operating supplies 13,720 13,460 13,439 21 Vehicle and equipment operating costs 1,400 - - - Contract services 16,080 18,210 18,192 18 Professional development 950 - - - Recruitment 270 80 75 5 Special purchases, projects and studies: Parking lot repairs - 1,930 1,921 9 Capital outlay: Shade sail replacement 24,670 24,670 16,024 8,646 Total Community Center 331,210 332,310 323,557 8,753 Pavilion: Salaries and benefits 168,440 164,960 157,230 7,730 Office expense 1,180 1,100 829 271 Advertising 4,740 4,740 3,695 1,045 Computer maintenance and replacement 11,620 11,620 11,620 - Insurance 9,070 9,150 9,147 3 Occupancy 54,770 54,770 54,770 - Variance with Final Budget Positive (Negative) Budget 88 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 136 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): Pavilion (continued): Utilities 26,250$ 26,250$ 24,260$ 1,990$ Communications 3,780 3,780 3,193 587 Operating supplies 7,580 7,580 5,429 2,151 Vehicle and equipment operating costs 2,650 2,650 37 2,613 Contract services 21,880 21,880 18,053 3,827 Professional development 100 100 - 100 Recruitment 310 310 222 88 Total Pavilion 312,370 308,890 288,485 20,405 Zoo: Salaries and benefits 840,420 776,230 771,539 4,691 Office expense 1,650 1,720 1,713 7 Advertising 200 - - - Computer maintenance and replacement 49,720 49,640 49,635 5 Insurance 28,180 28,240 28,232 8 Occupancy 45,560 45,590 45,585 5 Utilities 63,000 62,930 62,914 16 Communications 1,320 2,420 2,418 2 Operating supplies 125,990 129,270 128,791 479 Vehicle and equipment operating costs 5,940 6,810 6,801 9 Contract services 80,060 94,280 94,270 10 Professional development 14,550 12,510 10,948 1,562 Recruitment 100 790 784 6 Gift shop retail 37,000 77,230 77,227 3 Special purchases, projects, and studies: Animal acquisition - 3,890 3,882 8 Capital outlay: Sheds - 4,250 4,241 9 Freezer 40,000 40,000 - 40,000 Zoo electrical upgrade 30,000 30,000 - 30,000 Total Zoo 1,363,690 1,365,800 1,288,980 76,820 Budget Variance with Final Budget Positive (Negative) 89 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 137 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): Public Works Administration: Salaries and benefits 1,051,400$ 1,038,310$ 997,982$ 40,328$ Office expense 5,320 8,550 8,543 7 Advertising 250 250 238 12 Computer maintenance and replacement 76,480 76,480 75,405 1,075 Insurance 21,040 21,040 21,017 23 Occupancy charges 36,040 36,040 36,040 - Communications 3,000 3,000 2,024 976 Operating supplies 16,400 18,550 18,546 4 Vehicle and equipment operating costs 10,090 13,730 13,726 4 Contract services 25,750 8,700 8,696 4 Professional development 13,100 12,850 10,200 2,650 Recruitment 500 860 858 2 Contingency 7,000 7,000 - 7,000 Special purchases, projects, and studies: Lake dam inundation mapping study 4,040 4,040 - 4,040 City engineering standards 25,000 25,000 - 25,000 Total Public Works Administration 1,295,410 1,274,400 1,193,275 81,125 Public Works Operations: Salaries and benefits 239,650 240,950 240,865 85 Office expense 2,180 970 965 5 Computer maintenance and replacement 16,410 16,420 16,420 - Insurance 6,910 6,960 6,952 8 Occupancy charges 26,260 30,300 30,297 3 Utilities 8,790 12,150 12,140 10 Communications 1,150 1,240 1,236 4 Operating supplies 6,500 3,030 3,028 2 Vehicle and equipment operating costs 8,260 7,870 7,867 3 Contract services 500 - - - Professional development 1,330 130 121 9 Special purchases, projects, and studies: Welding equipment-manual pinch roller - 2,030 2,025 5 California Conservation Corp projects - 5,950 5,949 1 Corp yard building minor remodel 10,000 10,000 450 9,550 Downtown street tree renewal program 69,450 69,450 50,799 18,651 Capital Outlay: Computers- new 1,100 1,340 1,334 6 Variance with Final Budget Positive (Negative) Budget 90 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 138 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): Public Works Operations (continued): Capital Outlay (continued): Radio repeater project 90,000$ 90,000$ -$ 90,000$ Towable boom lift 30,000 30,000 26,096 3,904 Skid steer loader 50,000 50,000 49,971 29 Total Public Works Operations 568,490 578,790 456,515 122,275 Parks: Salaries and benefits 451,320 404,790 404,764 26 Computer maintenance and replacement 10,100 10,100 10,100 - Insurance 18,170 18,210 18,203 7 Occupancy 33,780 33,780 33,780 - Utilities 153,910 192,110 192,107 3 Communications 2,150 1,150 1,140 10 Operating supplies 63,520 63,270 63,267 3 Vehicle and equipment operating costs 48,080 50,340 50,332 8 Contract services 79,750 101,970 101,961 9 Professional development 3,500 750 745 5 Recruitment 900 310 310 - Special purchases, projects, and studies: Parks repair and replacement 150,000 150,000 - 150,000 Tree trimming and replacement - 16,500 15,424 1,076 Creek maintenance projects 55,000 55,000 49,481 5,519 Memorial benches - 6,870 6,859 11 Capital outlay: 75,000 75,110 75,108 2 200,000 200,000 - 200,000 59,580 59,580 59,580 - Total Parks 1,404,760 1,439,840 1,083,161 356,679 Measure F-14 Sales Tax: Capital outlay: 2020 Pavement Rehabilitation (East)9,000 9,000 8,942 58 2021 Pavement Resurfacing (East/South)550,000 550,000 446,757 103,243 Budget Variance with Final Budget Positive (Negative) Cash contribution to Vehicle and Equipment Fund for repeater and other equipment Turf mower Slurry seal and strip parking lots 91 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 139 of 200 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, 2022 Original Final Actual Amounts Expenditures (continued): Measure F-14 Sales Tax (continued): Capital outlay (continued): 2021 Pavement Rehabilitation (South)3,098,940$ 3,098,940$ 2,663,536$ 435,404$ 2022 Pavement Rehabilitation (West)1,968,870 2,568,870 209,785 2,359,085 2023 Pavement Rehabilitation (North)60,000 60,000 34,253 25,747 Total Measure F-14 Sales Tax 5,686,810 6,286,810 3,363,273 2,923,537 Non-Departmental: Contract servcies 5,000 - - - Special purchases, projects, and studies: COVID-19 emergency protective measures - 5,080 5,078 2 Capital outlay: - 12,170 12,160 10 Total Non-Departmental 5,000 17,250 17,238 12 Total expenditures 36,372,140 38,223,190 30,986,044 7,237,146 Excess of revenues over (under) expenditures (5,440,580) (6,686,990) 7,504,780 14,191,770 Other Financing Sources (Uses): 703,570 703,570 703,570 - (406,310) (406,310) (208,033) 198,277 (2,600) (2,600) (2,600) - (1,400) (1,400) (1,400) - Total other financing sources and uses 293,260 293,260 491,537 198,277 (5,147,320)$ (6,393,730)$ 7,996,317 14,390,047$ Fund balance - June 30, 2021 17,336,153 Fund balance - June 30, 2022 25,332,470$ Excess of revenue and other sources over (under) expenditures and other uses 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 Variance with Final Budget Positive (Negative) Transfer from Community Facilities District Fund Cash contribution to Technology Replacement Fund for backup power supply for city hall Budget 92 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 140 of 200 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 -$ -$ 101,533$ 101,533$ Interest income 15,970 15,970 (48,464) (64,434) Gain / (Loss) on inclusionary housing program loans - - 2,178 2,178 Total revenues 15,970 15,970 55,247 39,277 Expenditures: Contract services 5,000 3,080 - 3,080 Administrative charges 73,450 73,450 73,450 - Special projects: Closing cost program expense - 1,920 7,048 (5,128) PSHHC Del Rio Ridge affordable housing project 400,000 400,000 - 400,000 Total expenditures 478,450 478,450 80,498 397,952 Net change in fund balance (462,480)$ (462,480)$ (25,251) 437,229$ Fund balance, June 30, 2021 5,874,674 Fund balance, June 30, 2022 5,849,423$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2022 93 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 141 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 210,000$ 210,000$ 613,683$ 403,683$ - - - - Interest income 44,580 44,580 (129,024) (173,604) Total revenues 254,580 254,580 484,659 230,079 Expenditures: Capital outlay: Purchase of 6009 Del Rio - 71,460 71,457 3 101 @ Del Rio Interchange Project 1,486,960 1,406,400 437,096 969,304 Downtown Infrastructure Enhancement Program 68,840 68,840 - 68,840 Realignment of Ramona Road - 9,100 9,095 5 Total expenditures 1,555,800 1,555,800 517,648 1,038,152 Net change in fund balance (1,301,220)$ (1,301,220)$ (32,989) 1,268,231$ Fund balance, June 30, 2021 2,850,002 Fund balance, June 30, 2022 2,817,013$ Budget Variance with Final Budget Positive (Negative) USHA Grant-Downtown Infrastructure Enhancement Program 94 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 142 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 8,000$ 8,000$ 21,696$ 13,696$ Total revenues 8,000 8,000 21,696 13,696 Net change in fund balance 8,000$ 8,000$ 21,696 13,696$ Fund balance, June 30, 2021 (739,841) Fund balance, June 30, 2022 (718,145)$ Budget Variance with Final Budget Positive (Negative) 95 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 143 of 200 CITY OF ATASCADERO SCHEDULE OF CHANGES IN THE OPEB LIABILITY AND RELATED RATIOS Last 10 Years* For the Fiscal Year Ended June 30, 2022 The following table provides required supplementary information regarding the City's postemployment healthcare benefits. 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost 10,981$ 8,079$ 9,582$ 13,252$ 7,820$ Interest on total OPEB liability 6,699 6,464 6,190 5,763 5,583 Benefit payments (7,357) (6,726) (6,610) (4,800) (7,400) Net change in total OPEB liability 10,323 7,817 9,162 14,215 6,003 OPEB liability, beginning of year 223,297 215,480 206,318 192,103 186,100 OPEB liability, end of year 233,620$ 223,297$ 215,480$ 206,318$ 192,103$ Covered payroll 1,173,780$ 1,200,858$ 1,200,858$ 1,200,858$ 1,126,865$ Total OPEB liability as a percentage of covered payroll 19.90%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 five years are shown. Measurement Period 96 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 144 of 200 CITY OF ATASCADERO SCHEDULE OF OPEB CONTRIBUTIONS Last 10 Years As of June 30, 2022 As of June 30,2022,the plan is not administered through a qualified trust.Therefore,there is no Actuarially Determined contribution (ADC).Benefit payments of $7,357 were made on a pay-as-you-go basis for the fiscal year ended June 30,2022.Benefit payments of $6,726 were made on a pay-as-you-go basis for the fiscal year ended June 30, 2021.Benefits payments of $6,610 were made on a pay-as-you-go basis for the fiscal year ended June 30,2020.Benefit payments of $4,800 were made on a pay-as-you-go basis for the fiscal year ended June 30, 2019. Benefit payments of $7,400 were made on a pay-as-you-go basis for the fiscal year ended June 30, 2018. 97 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 145 of 200 CITY OF ATASCADERO SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Cost-Sharing Multiple-Employer Defined Pension Plan - Last 10 Years* As of June 30, 2022 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Measurement Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 City's proportion of the net pension liability 0.346860%0.281480%0.277520%0.275210%0.270324%0.272255%0.278260%0.260250% City's proportionate share of the net pension liability 18,759,199$ 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 **9,943,967$ 10,024,682$ 9,541,259$ 9,337,993$ 10,102,742$ 8,658,607$ 8,348,164$ 8,181,272$ 188.65%305.51%298.05%284.00%265.36%272.08%228.79%197.94% 46,174,942,264$ 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$ 40,766,653,876$ 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$ 88.29%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 eight years are shown. ** For the year ending on the measurement date. Fiscal Year End 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 98 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 146 of 200 CITY OF ATASCADERO SCHEDULE OF PENSION CONTRIBUTIONS Cost-Sharing Multiple-Employer Defined Pension Plan - Last 10 Years* As of June 30, 2022 Contributions for the fiscal year ending:6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 4,236,582$ 3,742,162$ 3,366,536$ 2,982,660$ 2,685,953$ 2,489,485$ 2,255,947$ 2,227,093$ (4,236,582) (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 **11,164,515$ 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 37.95%37.63%33.58%31.26%28.76%24.64%26.05%26.68% Notes to Schedule Valuation Date 06/30/19 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%7.150%7.375%7.650%7.650%7.500%7.500% Price inflation 2.50%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 eight years are shown. ** For the fiscal year ending on the date shown. Contractually required contribution (actuarially determined) Contributions in relation to the actuarially determined contributions Varies by entry age and service Entry age 5-year smoothed market Level percentage of payroll, closed 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 147 of 200 OTHER SUPPLEMENTARY INFORMATION ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 148 of 200 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, 2022 Original Final Actual Amounts Revenues: Interest income- cash and investments 5,000$ 5,000$ 1,545$ (3,455)$ 697,020 697,020 702,013 4,993 6,300 6,300 5,800 (500) Total revenues 708,320 708,320 709,358 1,038 Expenditures: Insurance 3,800 3,880 3,875 5 Contract services 2,500 2,420 1,925 495 Principal 270,000 270,000 270,000 - Interest 702,020 702,020 702,013 7 Total expenditures 978,320 978,320 977,813 507 Net change in fund balance (270,000)$ (270,000)$ (268,455) 1,545$ Fund balance, June 30, 2021 15,774,765 Fund balance, June 30, 2022 15,506,310$ 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 149 of 200 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 150 of 200 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 151 of 200 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 152 of 200 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 $16,010,000 in lease revenue bonds to be used for various redevelopment public improvement projects within the downtown area.As part of June 2011 state legislation,all redevelopment agencies throughout the State were dissolved.At that time,the Redevelopment Agency was in the process of expending the 2010 bond proceeds in accordance with the bond covenants which require the funds to be spent on the Historic City Hall Rehabilitation Project with the remaining funds to be spent on other eligible redevelopment projects.The Historic City Hall Rehabilitation Project has been completed,leaving remaining 2010 bond proceeds.In accordance with redevelopment dissolution law,in August of 2014,the City and the Successor Agency entered into a Master Agreement,transferring all remaining bond proceeds to the City to be spent on projects for which the bonds were originally sold.This fund accounts for the expenditure of those 2010 bond funds transferred to the City under the Master Agreement. Youth Center Construction Fund This fund accounts for funds received for and expended on the construction of the Colony Park Community Center. 104 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 153 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET June 30, 2022 Supplemental Law Enforcement Services Fund Downtown Business Improvement Area Fund Atascadero Tourism Business Improvement District Fund Community Development Block Grant Fund Tree Plant Fund Gas Tax Fund ASSETS Cash and investments 139,874$ 13,746$ 420,378$ -$ 207,157$ 100,064$ Receivables: Federal distributions due - - - 47,313 - - Due from State of California 16,100 - - - - 166,781 Due from County of San Luis Obispo - - - - - - Accrued interest 512 47 1,469 - 704 504 Other receivables - - 123,100 363 - - Due from other funds - - - - - - Prepaid items - - - - - 730 Total assets 156,486$ 13,793$ 544,947$ 47,676$ 207,861$ 268,079$ LIABILITIES AND FUND BALANCES Accounts payable 2,284$ -$ 20,737$ -$ 3,175$ 40,599$ Accrued salaries and benefits 1,502 - - - - 11,345 Due to other funds - - - 47,676 - - Unearned revenue 152,700 - 99 - - - Total liabilities 156,486 - 20,836 47,676 3,175 51,944 Fund Balances: Nonspendable - - - - - 730 Restricted - 13,793 524,111 - 204,686 215,405 Assigned for road projects - - - - - - Total fund balances - 13,793 524,111 - 204,686 216,135 Total liabilities and fund balances 156,486$ 13,793$ 544,947$ 47,676$ 207,861$ 268,079$ Special Revenue Funds 105 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 154 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2022 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 2,711,828$ 85,796$ 258,105$ 501,184$ 378,880$ 731,851$ Receivables: Federal distributions due 75,739 - - - - - Due from State of California 25,365 - - - - - Due from County of San Luis Obispo 622,785 33 - - - - Accrued interest 9,185 298 859 1,702 1,245 2,487 Other receivables - - - - - 391 Due from other funds - - - - - 718,145 Prepaid items - - - - - - Total assets 3,444,902$ 86,127$ 258,964$ 502,886$ 380,125$ 1,452,874$ LIABILITIES AND FUND BALANCES Accounts payable 427,686$ -$ -$ -$ -$ 29$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - - - - - - Total liabilities 427,686 - - - - 29 Fund Balances: Nonspendable - - - - - - Restricted 3,017,216 86,127 258,964 502,886 380,125 1,452,845 Assigned for road projects - - - - - - Total fund balances 3,017,216 86,127 258,964 502,886 380,125 1,452,845 Total liabilities and fund balances 3,444,902$ 86,127$ 258,964$ 502,886$ 380,125$ 1,452,874$ 106 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 155 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2022 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 900,723$ 590,124$ 88,015$ 272,597$ 22,604$ 506,488$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo - - - - 6,324 552 Accrued interest 3,083 1,957 275 925 - 1,749 Other receivables - - - - - - Due from other funds - - - - - - Prepaid items - - - - - - Total assets 903,806$ 592,081$ 88,290$ 273,522$ 28,928$ 508,789$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ -$ -$ -$ -$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - - - - - - Total liabilities - - - - - - Fund Balances: Nonspendable - - - - - - Restricted 903,806 592,081 88,290 273,522 28,928 508,789 Assigned for road projects - - - - - - Total fund balances 903,806 592,081 88,290 273,522 28,928 508,789 Total liabilities and fund balances 903,806$ 592,081$ 88,290$ 273,522$ 28,928$ 508,789$ Special Revenue Funds 107 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 156 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2022 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 ASSETS Cash and investments 221,498$ 568,302$ 187,989$ 489,311$ 124,680$ Receivables: Federal distributions due - - - - - Due from State of California - - - - - Due from County of San Luis Obispo 902 716 510 900 410 Accrued interest 766 2,238 645 1,698 435 Other receivables - - - - - Due from other funds - - - - - Prepaid items - - - - - Total assets 223,166$ 571,256$ 189,144$ 491,909$ 125,525$ LIABILITIES AND FUND BALANCES Accounts payable 3,857$ 6,842$ 4,318$ -$ 2,810$ Accrued salaries and benefits - - - - - Due to other funds - - - - - Unearned revenue 39,770 - - - - Total liabilities 43,627 6,842 4,318 - 2,810 Fund Balances: Nonspendable - - - - - Restricted 179,539 564,414 184,826 491,909 122,715 Assigned for road projects - - - - - Total fund balances 179,539 564,414 184,826 491,909 122,715 Total liabilities and fund balances 223,166$ 571,256$ 189,144$ 491,909$ 125,525$ Special Revenue Funds 108 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 157 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2022 Capital Projects Fund 2010 Bond Proceeds Master Agreement Fund Youth Center Construction Fund TOTALS ASSETS Cash and investments 353,501$ 265,106$ -$ 10,139,801$ Receivables: Federal distributions due - - - 123,052 Due from State of California - - - 208,246 Due from County of San Luis Obispo - - - 633,132 Accrued interest 1,231 925 - 34,939 Other receivables - - - 123,854 Due from other funds - - - 718,145 Prepaid items - - - 730 Total assets 354,732$ 266,031$ -$ 11,981,899$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ -$ 512,337$ Accrued salaries and benefits - - - 12,847 Due to other funds - - - 47,676 Unearned revenue - - - 192,569 Total liabilities - - - 765,429 Fund Balances: Nonspendable - - - 730 Restricted 130,598 266,031 - 10,991,606 Assigned for road projects 224,134 - - 224,134 Total fund balances 354,732 266,031 - 11,216,470 Total liabilities and fund balances 354,732$ 266,031$ -$ 11,981,899$ Capital Projects Funds 109 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 158 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For Fiscal Year Ended June 30, 2022 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 -$ 14,131$ 409,652$ -$ -$ -$ Licenses and permits - - - - 44,992 - Intergovernmental revenues 126,726 - - 69,008 - 1,334,102 Fines and forfeitures - - 933 - - - Use of money and property (4,308) (439) (11,341) - (6,095) (6,966) Other revenues - - - - - - Total revenues 122,418 13,692 399,244 69,008 38,897 1,327,136 Expenditures: Salaries and benefits 54,039 - - - - 369,108 Supplies and services 51,004 14,480 275,903 10,295 27,115 575,775 Special projects and studies 17,248 - - 8,820 1,925 - Capital outlay 5,809 - - 49,893 - - Total expenditures 128,100 14,480 275,903 69,008 29,040 944,883 Excess of revenues over (under) expenditures (5,682) (788) 123,341 - 9,857 382,253 Other Financing Sources (Uses): Transfers in - - - - - 208,033 Transfers out - - - - - (1,417,201) Total other financing sources (uses)- - - - - (1,209,168) Net change in fund balances (5,682) (788) 123,341 - 9,857 (826,915) Fund balances, June 30, 2021 5,682 14,581 400,770 - 194,829 1,043,050 Fund balances, June 30, 2022 -$ 13,793$ 524,111$ -$ 204,686$ 216,135$ Special Revenue Funds 110 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 159 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2022 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 - - 105,391 78,219 70,183 76,853 Intergovernmental revenues 1,953,778 - - - - - Fines and forfeitures - - - - - - Use of money and property (86,315) (2,561) (7,408) (14,493) (11,142) (11,328) Other revenues - - - - - - Total revenues 1,867,463 (401) 97,983 63,726 59,041 65,525 Expenditures: Salaries and benefits - - - - - - Supplies and services - - - - - - Special projects and studies 30,115 718 - - 3,420 - Capital outlay 3,572,444 - 60,126 - 28,867 - Total expenditures 3,602,559 718 60,126 - 32,287 - Excess of revenues over (under) expenditures (1,735,096) (1,119) 37,857 63,726 26,754 65,525 Other Financing Sources (Uses): Transfers in 1,417,201 - - - - - Transfers out - - - - - - Total other financing sources (uses)1,417,201 - - - - - Net change in fund balances (317,895) (1,119) 37,857 63,726 26,754 65,525 Fund balances, June 30, 2021 3,335,111 87,246 221,107 439,160 353,371 1,387,320 Fund balances, June 30, 2022 3,017,216$ 86,127$ 258,964$ 502,886$ 380,125$ 1,452,845$ Special Revenue Funds 111 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 160 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2022 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 -$ -$ -$ -$ 681,909$ 38,500$ Licenses and permits 134,913 377,607 85,688 47,045 - - Intergovernmental revenues - - - - - - Fines and forfeitures - - - - - - Use of money and property (26,088) (18,085) (2,079) (7,864) (1,305) (14,978) Other revenues - 30,000 - - - - Total revenues 108,825 389,522 83,609 39,181 680,604 23,522 Expenditures: Salaries and benefits - - - - - - Supplies and services - - - - 4,938 4,818 Special projects and studies - - - - - - Capital outlay - 257,574 - - - - Total expenditures - 257,574 - - 4,938 4,818 Excess of revenues over (under) expenditures 108,825 131,948 83,609 39,181 675,666 18,704 Other Financing Sources (Uses): Transfers in - - - - - - Transfers out - - - - (703,570) - Total other financing sources (uses)- - - - (703,570) - Net change in fund balances 108,825 131,948 83,609 39,181 (27,904) 18,704 Fund balances, June 30, 2021 794,981 460,133 4,681 234,341 56,832 490,085 Fund balances, June 30, 2022 903,806$ 592,081$ 88,290$ 273,522$ 28,928$ 508,789$ Special Revenue Funds 112 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 161 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2022 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 Revenues: Taxes and assessments 63,000$ 94,322$ 66,975$ 30,561$ 15,874$ Licenses and permits 11,000 - - - - Intergovernmental revenues - - - - - Fines and forfeitures - - - - - Use of money and property (6,858) (16,898) (5,718) (14,505) (3,786) Other revenues - - - - - Total revenues 67,142 77,424 61,257 16,056 12,088 Expenditures: Salaries and benefits - - - - - Supplies and services 60,555 13,682 66,067 4,743 19,554 Special projects and studies 10,000 136,849 - - 2,339 Capital outlay - - - - - Total expenditures 70,555 150,531 66,067 4,743 21,893 Excess of revenues over (under) expenditures (3,413) (73,107) (4,810) 11,313 (9,805) Other Financing Sources (Uses): Transfers in - - 2,600 - 1,400 Transfers out - - - - - Total other financing sources (uses)- - 2,600 - 1,400 Net change in fund balances (3,413) (73,107) (2,210) 11,313 (8,405) Fund balances, June 30, 2021 182,952 637,521 187,036 480,596 131,120 Fund balances, June 30, 2022 179,539$ 564,414$ 184,826$ 491,909$ 122,715$ Special Revenue Funds 113 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 162 of 200 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2022 Capital Projects Fund 2010 Bond Proceeds Master Agreement Fund Youth Center Construction Fund TOTALS Revenues: Taxes and assessments -$ -$ -$ 1,417,084$ Licenses and permits - - - 1,031,891 Intergovernmental revenues - - - 3,483,614 Fines and forfeitures - - - 933 Use of money and property (10,590) (8,151) (38) (299,339) Other revenues - - 1,213 31,213 Total revenues (10,590) (8,151) 1,175 5,665,396 Expenditures: Salaries and benefits - - - 423,147 Supplies and services - - - 1,128,929 Special projects and studies - - - 211,434 Capital outlay - 28,616 4,190 4,007,519 Total expenditures - 28,616 4,190 5,771,029 Excess of revenues over (under) expenditures (10,590) (36,767) (3,015) (105,633) Other Financing Sources (Uses): Transfers in - - - 1,629,234 Transfers out - - - (2,120,771) Total other financing sources (uses)- - - (491,537) Net change in fund balances (10,590) (36,767) (3,015) (597,170) Fund balances, June 30, 2021 365,322 302,798 3,015 11,813,640 Fund balances, June 30, 2022 354,732$ 266,031$ -$ 11,216,470$ Capital Projects Funds 114 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 163 of 200 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, 2022 Original Final Actual Amounts Revenues: S.L.E.S.F. Grant 100,920$ 126,740$ 126,726$ (14)$ Interest income - 1,710 (4,308) (6,018) Total revenues 100,920 128,450 122,418 (6,032) Expenditures: Employee services 64,060 54,060 54,039 21 Computer maintenance & replacement - 7,800 7,800 - Communications - 10,550 10,543 7 Operating supplies 10,300 25,220 25,212 8 Contract services 15,000 7,750 7,449 301 Professional development - - - - Special projects and purchases: Lockers and cabinets - 1,110 1,104 6 Personal protective vests - 6,010 6,006 4 Taser equipment - 10,140 10,138 2 Capital outlay: Radio repeater project 11,560 5,810 5,809 1 Total expenditures 100,920 128,450 128,100 350 Net change in fund balance -$ -$ (5,682) (5,682)$ Fund balance, June 30, 2021 5,682 Fund balance, June 30, 2022 -$ Budget Variance with Final Budget Positive (Negative) 115 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 164 of 200 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, 2022 Original Final Actual Amounts Revenues: Tourism assessments 12,750$ 13,690$ 14,131$ 441$ Interest income 70 70 (439) (509) Total revenues 12,820 13,760 13,692 (68) Expenditures: Main Street Administration 14,480 15,420 14,480 940 Total expenditures 14,480 15,420 14,480 940 Net change in fund balance (1,660)$ (1,660)$ (788) 872$ Fund balance, June 30, 2021 14,581 Fund balance, June 30, 2022 13,793$ Budget Variance with Final Budget Positive (Negative) 116 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 165 of 200 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, 2022 Original Final Actual Amounts Revenues: Tourism assessments 292,320$ 292,320$ 409,652$ 117,332$ Tourism assessment penalties - - 933 933 Interest income 6,950 6,950 (11,341) (18,291) Total revenues 299,270 299,270 399,244 99,974 Expenditures: Office expense 250 270 264 6 Advertising 165,000 159,980 127,366 32,614 Operating supplies - - - - Contract services 140,000 143,440 143,436 4 Professional development 430 740 731 9 Administration 2,860 4,110 4,106 4 Total expenditures 308,540 308,540 275,903 32,637 Net change in fund balance (9,270)$ (9,270)$ 123,341 132,611$ Fund balance, June 30, 2021 400,770 Fund balance, June 30, 2022 524,111$ Budget Variance with Final Budget Positive (Negative) 117 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 166 of 200 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, 2022 Original Final Actual Amounts Revenues: Community Development Block Grant 156,660$ 246,280$ 69,008$ (177,272)$ Total revenues 156,660 246,280 69,008 (177,272) Expenditures: Administration: CDBG general administration - 10,300 10,295 5 Special projects and studies: Youth scholarships - 10,700 8,820 1,880 Capital outlay: Traffic Way and El Camino Real barrier removal 40,720 40,720 15,852 24,868 Santa Rosa barrier removal 115,940 115,940 34,041 81,899 Viejo Camino barrier removal - 68,620 - 68,620 Total expenditures 156,660 246,280 69,008 177,272 Net change in fund balance -$ -$ - -$ Fund balance, June 30, 2021 - Fund balance, June 30, 2022 -$ Budget Variance with Final Budget Positive (Negative) 118 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 167 of 200 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, 2022 Original Final Actual Amounts Revenues: Permits and fees 12,000$ 12,000$ 44,992$ 32,992$ Interest income 1,210 1,210 (6,095) (7,305) Total revenues 13,210 13,210 38,897 25,687 Expenditures: Office expense 80 80 - 80 Operating supplies 200 200 - 200 Contract services 10,000 10,000 9,055 945 Professional development 300 300 - 300 Administrative charges 18,060 18,060 18,060 - Special projects and studies: Native tree replanting 5,000 5,000 1,925 3,075 Total expenditures 33,640 33,640 29,040 4,600 Net change in fund balance (20,430)$ (20,430)$ 9,857 30,287$ Fund balance, June 30, 2021 194,829 Fund balance, June 30, 2022 204,686$ Budget Variance with Final Budget Positive (Negative) 119 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 168 of 200 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, 2022 Original Final Actual Amounts Revenues: Section 2103 highway users tax 231,620$ 231,620$ 234,748$ 3,128$ Section 2105 highway users tax 170,150 170,150 164,897 (5,253) Section 2106 highway users tax 126,040 126,040 128,249 2,209 Section 2107 highway users tax 216,400 216,400 197,252 (19,148) Section 2107.5 highway users tax 6,000 6,000 6,000 - SB1- Section 2031 Road Maintenance & Rehabilitation 577,400 577,400 602,956 25,556 Interest income 9,880 9,880 (6,966) (16,846) Total revenues 1,337,490 1,337,490 1,327,136 (10,354) Expenditures: Salaries and benefits 494,390 494,390 369,108 125,282 Office expense - 130 125 5 Computer maintenance & replacement 4,040 4,040 4,040 - Insurance 23,220 23,250 23,246 4 Utilities 119,150 121,900 121,895 5 Communications 1,500 1,500 1,395 105 Operating supplies and equipment 42,000 38,770 35,749 3,021 Vehicle and equipment operations 70,840 70,840 57,281 13,559 Contract services 133,550 133,550 54,281 79,269 Professional development 2,000 2,000 1,741 259 Recruitment 300 620 612 8 Department service allocation 163,870 163,870 163,870 - Administrative charges 111,540 111,540 111,540 - Total expenditures 1,166,400 1,166,400 944,883 221,517 Excess of revenues over (under) expenditures 171,090 171,090 382,253 211,163 Budget Variance with Final Budget Positive (Negative) 120 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 169 of 200 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, 2022 Original Final Actual Amounts Other Financing Sources (Uses): 406,310$ 406,310$ 208,033$ (198,277)$ (1,564,360) (1,564,360) (1,417,201) 147,159 Total other financing sources (uses)(1,158,050) (1,158,050) (1,209,168) (51,118) Net change in fund balance (986,960)$ (986,960)$ (826,915) 160,045$ Fund balance, June 30, 2021 1,043,050 Fund balance, June 30, 2022 216,135$ 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 170 of 200 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, 2022 Original Final Actual Amounts Revenues: Local Transportation Tax- Article 3 Bike Paths 30,370$ 30,370$ 30,366$ (4)$ Local Transportation Tax- Article 8 Streets 708,100 708,100 1,199,523 491,423 HBRR Grant - Via Avenue Bridge 1,771,880 1,771,880 44,376 (1,727,504) HBRR Grant - Santa Lucia Bridge 1,533,880 1,533,880 31,363 (1,502,517) USHA- Traffic Way/Ardilla Ave Rehabilitation 371,970 371,970 276,015 (95,955) USHA- San Gabriel Road Rehabilitation 346,770 346,770 346,770 - Local Roadway Safety Plan 15,880 15,880 25,365 9,485 Interest income 44,320 44,320 (86,315) (130,635) Total revenues 4,823,170 4,823,170 1,867,463 (2,955,707) Expenditures: Special projects: Roadway Traffic Safety Improvements 30,000 30,000 - 30,000 Citywide Pavement Condition Evaluation Update 6,650 6,650 - 6,650 25,000 25,000 - 25,000 Local Roadway Safety Plan 31,710 31,710 30,115 1,595 Capital outlay: Downtown Infrastructure Enhancement Plan 650,000 3,650,000 138,226 3,511,774 El Camino Real Rehabilitation Project- South 1,751,010 1,751,010 1,417,201 333,809 Traffic Way/Ardilla Avenue Rehabilitation 371,970 371,970 276,015 95,955 San Marcos Road Embankment Subsidence Repair 123,330 123,330 - 123,330 San Gabriel Road Rehabilitation 958,550 958,550 825,255 133,295 San Marcos Road Rehabilitation 786,700 786,700 655,264 131,436 Traffic Way/US 101 Alleyway Rehabilitation 200,000 200,000 89,981 110,019 Downtown District Pavement Rehabilitation 150,000 150,000 2,339 147,661 Storm Drainage Improvement Projects 75,000 75,000 24,521 50,479 Via Avenue Bridge Replacement 2,001,450 2,001,450 54,907 1,946,543 Santa Lucia Road Bridge Replacement 1,533,880 1,533,880 88,735 1,445,145 Total expenditures 8,695,250 11,695,250 3,602,559 8,092,691 Excess of revenues over (under) expenditures (3,872,080) (6,872,080) (1,735,096) 5,136,984 Budget Variance with Final Budget Positive (Negative) Bridge Evaluations and Studies 122 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 171 of 200 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, 2022 Original Final Actual Amounts Other Financing Sources (Uses): 1,564,360$ 1,564,360$ 1,417,201$ (147,159)$ Total other financing sources (uses)1,564,360 1,564,360 1,417,201 (147,159) Net change in fund balance (2,307,720)$ (5,307,720)$ (317,895) 4,989,825$ Fund balance, June 30, 2021 3,335,111 Fund balance, June 30, 2022 3,017,216$ Transfer from Gas Tax Fund for El Camino Real Rehabilitation Project South (SB1) Budget Variance with Final Budget Positive (Negative) 123 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 172 of 200 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, 2022 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 1,610 1,610 (2,561) (4,171) Total revenues 3,770 3,770 (401) (4,171) Expenditures: Special projects and studies: Street maintenance projects 20,000 20,000 718 19,282 Total expenditures 20,000 20,000 718 19,282 Net change in fund balance (16,230)$ (16,230)$ (1,119) 15,111$ Fund balance, June 30, 2021 87,246 Fund balance, June 30, 2022 86,127$ Variance with Final Budget Positive (Negative) Budget 124 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 173 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 40,000$ 40,000$ 105,391$ 65,391$ Interest income (660) (660) (7,408) (6,748) Total revenues 39,340 39,340 97,983 58,643 Expenditures: Capital projects: Asset management software 420,000 420,000 - 420,000 New Fire department vehicle 65,000 65,000 60,126 4,874 New Parks department vehicle 45,000 45,000 - 45,000 Total expenditures 530,000 530,000 60,126 469,874 Net change in fund balance (490,660)$ (490,660)$ 37,857 528,517$ Fund balance, June 30, 2021 221,107 Fund balance, June 30, 2022 258,964$ Variance with Final Budget Positive (Negative) Budget 125 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 174 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 35,000$ 35,000$ 78,219$ 43,219$ Interest income 9,270 9,270 (14,493) (23,763) Total revenues 44,270 44,270 63,726 19,456 Net change in fund balance 44,270$ 44,270$ 63,726 19,456$ Fund balance, June 30, 2021 439,160 Fund balance, June 30, 2022 502,886$ Variance with Final Budget Positive (Negative) Budget 126 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 175 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 40,000$ 40,000$ 70,183$ 30,183$ Interest income 5,950 5,950 (11,142) (17,092) Total revenues 45,950 45,950 59,041 13,091 Expenditures: Special projects and studies: Equipment for new police officers 36,000 36,000 3,420 32,580 Capital Projects: Generator for new Templeton repeater 100,000 100,000 28,867 71,133 New police department vehicles 184,000 184,000 - 184,000 Total expenditures 320,000 320,000 32,287 287,713 Net change in fund balance (274,050)$ (274,050)$ 26,754 300,804$ Fund balance, June 30, 2021 353,371 Fund balance, June 30, 2022 380,125$ Budget Variance with Final Budget Positive (Negative) 127 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 176 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 30,000$ 30,000$ 76,853$ 46,853$ Rental income 10,800 10,800 9,900 (900) Interest income 13,470 13,470 (21,228) (34,698) Total revenues 54,270 54,270 65,525 11,255 Net change in fund balance 54,270$ 54,270$ 65,525 11,255$ Fund balance, June 30, 2021 1,387,320 Fund balance, June 30, 2022 1,452,845$ Budget Variance with Final Budget Positive (Negative) 128 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 177 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 55,000$ 55,000$ 134,913$ 79,913$ Interest income 16,620 16,620 (26,088) (42,708) Total revenues 71,620 71,620 108,825 37,205 Net change in fund balance 71,620$ 71,620$ 108,825 37,205$ Fund balance, June 30, 2021 794,981 Fund balance, June 30, 2022 903,806$ Budget Variance with Final Budget Positive (Negative) 129 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 178 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 145,000$ 145,000$ 377,607$ 232,607$ Interest income 5,030 5,030 (18,085) (23,115) Donations- Pickleball Club - 44,240 30,000 (14,240) Total revenues 150,030 194,270 389,522 195,252 Expenditures: Capital Projects: Atascadero Lake pipeline repair 137,890 137,890 - 137,890 Atascadero Mall Plaza project 135,450 135,450 67,878 67,572 Pickleball courts at Colony Park 141,220 231,220 189,696 41,524 Total expenditures 414,560 504,560 257,574 246,986 Net change in fund balance (264,530)$ (310,290)$ 131,948 442,238$ Fund balance, June 30, 2021 460,133 Fund balance, June 30, 2022 592,081$ Budget Variance with Final Budget Positive (Negative) 130 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 179 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 34,000$ 34,000$ 85,688$ 51,688$ Interest income 520 520 (2,079) (2,599) Total revenues 34,520 34,520 83,609 49,089 Net change in fund balance 34,520$ 34,520$ 83,609 49,089$ Fund balance, June 30, 2021 4,681 Fund balance, June 30, 2022 88,290$ Budget Variance with Final Budget Positive (Negative) 131 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 180 of 200 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, 2022 Original Final Actual Amounts Revenues: Impact fees 16,000$ 16,000$ 47,045$ 31,045$ Interest income 4,860 4,860 (7,864) (12,724) Total revenues 20,860 20,860 39,181 18,321 Net change in fund balance 20,860$ 20,860$ 39,181 18,321$ Fund balance, June 30, 2021 234,341 Fund balance, June 30, 2022 273,522$ Budget Variance with Final Budget Positive (Negative) 132 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 181 of 200 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 680,220$ 680,220$ 681,909$ 1,689$ Interest income 1,020 1,020 (1,305) (2,325) Total revenues 681,240 681,240 680,604 (636) Expenditures: Contract services 5,240 5,240 4,938 302 Total expenditures 5,240 5,240 4,938 302 Excess of revenues over (under) expenditures 676,000 676,000 675,666 (334) Other Financing Sources (Uses): (703,570) (703,570) (703,570) - Total other financing sources (uses)(703,570) (703,570) (703,570) - Net change in fund balance (27,570)$ (27,570)$ (27,904) (334)$ Fund balance, June 30, 2021 56,832 Fund balance, June 30, 2022 28,928$ Transfer to the General Fund for police, fire and parks services For the Fiscal Year Ended June 30, 2022 Budget Variance with Final Budget Positive (Negative) 133 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 182 of 200 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 10,070 10,070 (14,978) (25,048) Total revenues 48,570 48,570 23,522 (25,048) Expenditures: Office expense - 30 27 3 Advertising 200 170 100 70 Contract services 18,690 18,690 3,562 15,128 Administration 1,800 1,800 1,129 671 Total expenditures 20,690 20,690 4,818 15,872 Net change in fund balance 27,880$ 27,880$ 18,704 (9,176)$ Fund balance, June 30, 2021 490,085 Fund balance, June 30, 2022 508,789$ Budget For the Fiscal Year Ended June 30, 2022 Variance with Final Budget Positive (Negative) 134 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 183 of 200 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 11,000 11,000 11,000 - Interest income 3,570 3,570 (6,858) (10,428) Total revenues 77,570 77,570 67,142 (10,428) Expenditures: Office expense - 30 27 3 Advertising 580 550 321 229 Utilities 14,160 14,160 12,553 1,607 Operating supplies 2,500 2,500 69 2,431 Contract services 61,860 61,860 46,355 15,505 Administration 2,100 2,100 1,230 870 Special projects and studies: Tree trimming and replacement 10,000 10,000 10,000 - Infrastructure improvements 24,000 24,000 - 24,000 Total expenditures 115,200 115,200 70,555 44,645 Net change in fund balance (37,630)$ (37,630)$ (3,413) 34,217$ Fund balance, June 30, 2021 182,952 Fund balance, June 30, 2022 179,539$ For the Fiscal Year Ended June 30, 2022 Budget Variance with Final Budget Positive (Negative) 135 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 184 of 200 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 94,320$ 94,320$ 94,322$ 2$ Interest income 13,300 13,300 (16,898) (30,198) Total revenues 107,620 107,620 77,424 (30,196) Expenditures: Office expense - 80 72 8 Advertising 300 220 100 120 Contract services 18,840 18,840 12,382 6,458 Administration 1,800 1,800 1,128 672 Special projects and studies: Slurry seal 394,000 394,000 136,849 257,151 Total expenditures 414,940 414,940 150,531 264,409 Net change in fund balance (307,320)$ (307,320)$ (73,107) 234,213$ Fund balance, June 30, 2021 637,521 Fund balance, June 30, 2022 564,414$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2022 136 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 185 of 200 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 66,980$ 66,980$ 66,975$ (5)$ Interest income 3,200 3,200 (5,718) (8,918) Total revenues 70,180 70,180 61,257 (8,923) Expenditures: Office expense - 80 72 8 Advertising 510 430 321 109 Utilities 6,000 7,180 7,175 5 Operating supplies 2,000 2,000 - 2,000 Contract services 88,230 87,050 57,269 29,781 Administration 1,380 1,380 1,230 150 Special projects and studies: Planting and landscape project 9,000 9,000 - 9,000 Total expenditures 107,120 107,120 66,067 41,053 Excess of revenues over (under) expenditures (36,940) (36,940) (4,810) 32,130 Other Financing Sources (Uses): 2,600 2,600 2,600 - Total other financing sources (uses)2,600 2,600 2,600 - Net change in fund balance (34,340)$ (34,340)$ (2,210) 32,130$ Fund balance, June 30, 2021 187,036 Fund balance, June 30, 2022 184,826$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2022 Transfer from the General Fund for open space maintenance 137 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 186 of 200 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 9,790 9,790 (14,505) (24,295) Total revenues 40,350 40,350 16,056 (24,294) Expenditures: Office expense - 20 18 2 Advertising 310 290 100 190 Contract services 19,690 19,690 3,496 16,194 Administration 1,600 1,600 1,129 471 Total expenditures 21,600 21,600 4,743 16,857 Net change in fund balance 18,750$ 18,750$ 11,313 (7,437)$ Fund balance, June 30, 2021 480,596 Fund balance, June 30, 2022 491,909$ For the Fiscal Year Ended June 30, 2022 Budget Variance with Final Budget Positive (Negative) 138 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 187 of 200 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 2,410 2,410 (3,786) (6,196) Total revenues 18,290 18,290 12,088 (6,202) Expenditures: Office expense - 20 18 2 Advertising 500 480 317 163 Utilities 1,000 1,410 1,402 8 Operating supplies 500 500 - 500 Contract services 17,740 17,330 16,587 743 Administration 2,220 2,220 1,230 990 Special projects and studies: Landscape improvements 7,700 7,700 2,339 5,361 Total expenditures 29,660 29,660 21,893 7,767 Excess of revenues over (under) expenditures (11,370) (11,370) (9,805) 1,565 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 (9,970)$ (9,970)$ (8,405) 1,565$ Fund balance, June 30, 2021 131,120 Fund balance, June 30, 2022 122,715$ Transfer from the General Fund for open space maintenance For the Fiscal Year Ended June 30, 2022 Budget Variance with Final Budget Positive (Negative) 139 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 188 of 200 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, 2022 Original Final Actual Amounts Revenues: Interest income 7,520$ 7,520$ (10,590)$ (18,110)$ Total revenues 7,520 7,520 (10,590) (18,110) Net change in fund balance 7,520$ 7,520$ (10,590) (18,110)$ Fund balance, June 30, 2021 365,322 Fund balance, June 30, 2022 354,732$ Variance with Final Budget Positive (Negative) Budget 140 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 189 of 200 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, 2022 Original Final Actual Amounts Revenues: Interest income 2,790$ 2,790$ (8,151)$ (10,941)$ Total revenues 2,790 2,790 (8,151) (10,941) Expenditures: Capital outlay: Centennial Bridge and Plaza project 275,420 275,420 23,257 252,163 Maiden statue placement 15,000 15,000 861 14,139 Downtown parking wayfinding signage 20,000 20,000 4,498 15,502 Total expenditures 310,420 310,420 28,616 281,804 Net change in fund balance (307,630)$ (307,630)$ (36,767) 270,863$ Fund balance, June 30, 2021 302,798 Fund balance, June 30, 2022 266,031$ Budget Variance with Final Budget Positive (Negative) 141 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 190 of 200 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, 2022 Original Final Actual Amounts Revenues: Interest income -$ -$ (38)$ (38)$ Donations 1,220 1,220 1,213 (7) Total revenues 1,220 1,220 1,175 (45) Expenditures: Capital outlay: Colony Park outdoor lighting project 4,300 4,300 4,190 110 Total expenditures 4,300 4,300 4,190 110 Net change in fund balance (3,080)$ (3,080)$ (3,015) 65$ Fund balance, June 30, 2021 3,015 Fund balance, June 30, 2022 -$ Budget Variance with Final Budget Positive (Negative) 142 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 191 of 200 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2022 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals ASSETS Current Assets: Cash and investments 2,007,054$ 4,717,325$ 4,233,147$ 10,957,526$ Receivables: Accrued interest 6,862 16,208 14,599 37,669 Prepaid expenses 33,900 - - 33,900 Total current assets 2,047,816 4,733,533 4,247,746 11,029,095 Capital Assets: Non-depreciable: Construction in progress 161,369 60,126 113,719 335,214 Depreciable: Vehicles - 5,490,740 - 5,490,740 Equipment 3,816,281 4,629,669 21,024 8,466,974 Structures and improvements - - 52,991,591 52,991,591 Accumulated depreciation (3,092,000) (6,912,702) (12,138,994) (22,143,696) Net capital assets 885,650 3,267,833 40,987,340 45,140,823 Total assets 2,933,466 8,001,366 45,235,086 56,169,918 DEFERRED OUTFLOWS Deferred outflows related to pensions 97,898 - 88,862 186,760 Total deferred outflows 97,898 - 88,862 186,760 LIABILITIES Current Liabilities: Accounts payable 48,624 8,021 20,745 77,390 Accrued salaries and benefits 21,478 - 8,197 29,675 Unearned revenue - - 800 800 Noncurrent Liabilities: Noncurrent liabilities 231,291 - 304,244 535,535 Total liabilities 301,393 8,021 333,986 643,400 143 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 192 of 200 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION (continued) June 30, 2022 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals DEFERRED INFLOWS Deferred inflows related to pensions 460,276$ -$ 255,060$ 715,336$ Total deferred inflows 460,276 - 255,060 715,336 NET POSITION Net investment in capital assets 885,650 3,267,833 40,987,340 45,140,823 Unrestricted 1,384,045 4,725,512 3,747,562 9,857,119 Total net position 2,269,695$ 7,993,345$ 44,734,902$ 54,997,942$ 144 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 193 of 200 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2022 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating Revenues: Charges for services 1,137,870$ 769,285$ 917,740$ 2,824,895$ Total operating revenues 1,137,870 769,285 917,740 2,824,895 Operating Expenses: Salaries and benefits 650,293 - 286,259 936,552 Office expense 1,131 - - 1,131 Computer maintenance, software and replacement - - 3,700 3,700 Insurance - - 84,154 84,154 Occupancy and rental costs 55,010 - - 55,010 Utilities - - 90,319 90,319 Communications 71,990 - 2,007 73,997 Operating supplies and services 28,379 - 18,871 47,250 Vehicle and equipment operating costs 285 - 13,239 13,524 Contract services 96,247 - 36,411 132,658 Professional development 2,838 - - 2,838 Recruitment 53 - 249 302 Administrative charges 6,410 - 67,960 74,370 Special projects: Desks 2,075 - - 2,075 Monitors 265 - - 265 Depreciation 252,537 583,162 1,191,209 2,026,908 Total operating expenses 1,167,513 583,162 1,794,378 3,545,053 Operating income (loss)(29,643) 186,123 (876,638) (720,158) 145 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 194 of 200 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2022 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Non-Operating Revenues (Expenses): Interest income (59,100)$ (134,626)$ (124,909)$ (318,635)$ Gain (loss) on sale of capital assets - 10,217 - 10,217 Total non-operating revenues (expenses)(59,100) (124,409) (124,909) (308,418) Change in net position prior to capital contributions (88,743) 61,714 (1,001,547) (1,028,576) Capital Contributions: Cash contributions from other funds 12,160 64,050 - 76,210 Capital contributions from other funds 156,594 878,363 331,921 1,366,878 Total capital contributions 168,754 942,413 331,921 1,443,088 Change in net position 80,011 1,004,127 (669,626) 414,512 Total net position, June 30, 2021 2,189,684 6,989,218 45,404,528 54,583,430 Total net position, June 30, 2022 2,269,695$ 7,993,345$ 44,734,902$ 54,997,942$ 146 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 195 of 200 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2022 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Cash Flows From Operating Activities: Internal activity - payments from other funds 1,137,870$ 769,285$ 917,740$ 2,824,895$ Payments to suppliers of goods and services (288,295) (29,330) (314,260) (631,885) Payments for employee services (579,538) - (259,935) (839,473) Net cash provided by operating activities 270,037 739,955 343,545 1,353,537 Acquisition of capital assets (73,880) (61,731) (6,480) (142,091) Cash contributions received for capital purchases 12,160 64,050 - 76,210 Proceeds from sale of capital assets - 28,400 - 28,400 Net cash provided (used) by capital and related financing activities (61,720) 30,719 (6,480) (37,481) Cash Flows From Investing Activities: Interest income (61,727) (141,652) (129,208) (332,587) Net cash used by investing activities (61,727) (141,652) (129,208) (332,587) Net increase in cash and cash equivalents 146,590 629,022 207,857 983,469 Cash and cash equivalents - June 30, 2021 1,860,464 4,088,303 4,025,290 9,974,057 Cash and cash equivalents - June 30, 2022 2,007,054$ 4,717,325$ 4,233,147$ 10,957,526$ Cash Flows From Capital and Related Financing Activities: 147 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 1 Page 196 of 200 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2022 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating income (loss)(29,643)$ 186,123$ (876,638)$ (720,158)$ Depreciation expense 252,537 583,162 1,191,209 2,026,908 Prepaid expenses (20,201) - - (20,201) Accounts payable (3,411) (29,330) 2,550 (30,191) Accrued salaries and benefits 6,181 - (715) 5,466 Unearned revenue - - 100 100 Deferred outflows (8,006) - (4,249) (12,255) Deferred inflows 438,597 - 232,778 671,375 Net pension liability (375,161) - (199,110) (574,271) Compensated absences 9,144 - (2,380) 6,764 Net cash provided by operating activities 270,037$ 739,955$ 343,545$ 1,353,537$ 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-2 DATE: 01/24/23 ATTACHMENT: 1 Page 197 of 200 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 Moss, Levy & Hartzheim LLP Certified Public Accountants 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, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 12, 2022. 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. We did identify deficiencies in internal controls, described in the accompanying schedule of findings and questioned costs, see Finding 2022-001. 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. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 2 Page 198 of 200 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 December 12, 2022 ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 2 Page 199 of 200 City of Atascadero Schedule of Findings and Recommendations June 30, 2022 FINDING 2022-001 CASH RECEIPTS Criteria: Internal control procedures for cash receipts should be in place to ensure all fees match current Council approved rates. Condition: During our testing of cash receipts, we found that certain facility use permits were not updated to the proper Council approved rates for the fiscal year ended June 30, 2022 that were approved by the City Council on August 24, 2021. Effect: Certain facility use permit fees collected between after the August 24, 2021 update to the fee schedule were understated as they were charged based on the older fee schedule approved July 16, 2019. Cause: The City did not properly update all the rates in the system and ensure that all employees involved in fee collection are aware of rate changes upon Council’s adoption of a new schedule. Repeat Finding: No. Recommendation: Ensure that internal control procedures are in place to input fee rate updates into the City’s financial systems and ensure that all employees involved in fee collection are aware of rate changes immediately and for those rates to be reviewed. Also, a control should be created to at least periodically recalculate the fees on receipts manually and match to the latest Council approved Master Fee Schedule. Corrective Action Plan: Staff in two different departments will independently verify that the new updated rates per the Council approved Fee Schedules are in place as of the effective date. Staff in the Finance Department will also periodically sample receipts for testing to verify the fees are being correctly charged. ITEM NUMBER: C-2 DATE: 01/24/23 ATTACHMENT: 2 Page 200 of 200