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HomeMy WebLinkAboutCC_2017_01_24_Agenda Packet CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, January 24, 2017 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California (Entrance on Lewis Ave.) REGULAR SESSION – CALL TO ORDER: 6:00 P.M. PLEDGE OF ALLEGIANCE: Mayor O’Malley ROLL CALL: Mayor O’Malley Mayor Pro Tem Fonzi Council Member Bourbeau Council Member Moreno Council Member Sturtevant 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 City Council Regular Session 1 of 210 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. DRAFT MINUTES: Council meeting draft minutes are listed on the Consent Calendar for approval of the minutes. Should anyone wish to request an amendment to draft minutes, the item will be removed from the Consent Calendar and their suggestion will be considered by the City Council. If anyone desires to express their opinion concerning issues included in draft minutes, they should share their opinion during the Community Forum portion of the meeting.) 1. City Council Draft Action Minutes – January 10, 2017  Recommendation: Council approve the City Council Draft Action Minutes of the January 10, 2017 City Council meeting. [City Clerk] 2. December 2016 Accounts Payable and Payroll  Fiscal Impact: $2,354,107.09  Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for December 2016. [Administrative Services] 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. 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 470-3400, or cityclerk@atascadero.org.) B. PUBLIC HEARINGS: None. 2 of 210 C. MANAGEMENT REPORTS: 1. Fiscal Year 2015-2016 Audit  Fiscal Impact: None.  Recommendations: Council review and accept the financial audit for the period ended June 30, 2016. [Administrative Services] COUNCIL ANNOUNCEMENTS AND REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. 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.) D. COMMITTEE REPORTS: (The following represent standing committees. Informative status reports will be given, as felt necessary): Mayor O’Malley 1. City / Schools Committee 2. County Mayors Round Table 3. SLO Council of Governments (SLOCOG) 4. SLO Regional Transit Authority (RTA) 5. Integrated Waste Management Authority (IWMA) Mayor Pro Tem Fonzi 1. Air Pollution Control District 2. Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero 3. SLO Local Agency Formation Commission (LAFCo) 4. City of Atascadero Design Review Committee 5. SLO County Water Resources Advisory Committee (WRAC) Council Member Bourbeau 1. City of Atascadero Design Review Committee 2. Homeless Services Oversight Council 3. City of Atascadero Finance Committee Council Member Moreno 1. California Joint Powers Insurance Authority (CJPIA) Board 2. City of Atascadero Finance Committee (Chair) 3. Economic Vitality Corporation, Board of Directors (EVC) Council Member Sturtevant 1. City / Schools Committee 2. League of California Cities – Council Liaison 3 of 210 E. INDIVIDUAL DETERMINATION AND / OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager F. ADJOURN TO MEETINGS OF THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO AND THE PUBLIC FINANCING AUTHORITY Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that person may be limited to raising those issues addressed at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this public hearing will be distributed to the Council and available for review in the City Clerk's office. I, Amanda Muther, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that the foregoing agenda for the January 24, 2017 Regular Session of the Atascadero City Council was posted on January 17, 2017, at the Atascadero City Hall, 6500 Palma Avenue, Atascadero, CA 93422 and was available for public review at that location. Signed this 17th day of January 2017, at Atascadero, California. Amanda Muther, Deputy City Clerk City of Atascadero 4 of 210 City of Atascadero WELCOME TO THE ATASCADERO CITY COUNCIL MEETING The City Council meets in regular session on the second and fourth Tuesday of each month at 6:00 p.m. Council meetings will be held at the City Hall Council Chambers, 6500 Palma Avenue, Atascadero. Matters are considered by the Council in the order of the printed Agenda. Regular Council meetings are televised live , audio recorded and videotaped for future playback. Charter Communication customers may view the meetings on Charter Cable Channel 20 or via the City’s website at www.atascadero.org. Meetings are also broadcast on radio station KPRL AM 1230. Contact the City Clerk for more information (470-3400). 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 during City Hall business hours at the Front Counter of City Hall, 6500 Palma Avenue, Atascadero, and 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 either read into the record or referred to in their statement will be noted in the minutes and available for review in the City Clerk's office . In compliance with the Americans with Disab ilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Manager’s Office or the City Clerk’s Office, both at (805) 470-3400. Notification at least 48 hours prior to the m eeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. TO SPEAK ON SUBJECTS NOT LISTED ON THE AGENDA Under Agenda item, “COMMUNITY FORUM”, the Mayor will call for anyone from the audience having business with the Council to approach the lectern and be recognized. 1. Give your name for the record (not required) 2. State the nature of your business. 3. All comments are limited to 3 minutes. 4. All comments should be made to the Mayor and Council. 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present This is the time items not on the Agenda may be brought to the Council’s attention. A maximum of 30 minutes will be allowed for Community Forum (unless changed by the Council). If you wish to use a computer presentation to support your comments, you must notify the City Clerk's office at least 24 hours prior to the meeting. Digital presentations must be brought to the meeting on a USB drive or CD. You are required to submit to the City Clerk a printed copy of your presentatio n for the record. Please check in with the City Clerk before the meeting begins to announce your presence and turn in the printed copy. TO SPEAK ON AGENDA ITEMS (from Title 2, Chapter 1 of the Atascadero Municipal Code) Members of the audience may speak on any item on the agenda. The Mayor will identify the s ubject, staff will give their report, and the Council will ask questions of staff. The Mayor will announce when the public comment period is open and will request anyone interested to address the Council regarding the matter being considered to step up to the lectern. If you wish to speak for, against or comment in any way: 1. You must approach the lectern and be recognized by the Mayor 2. Give your name (not required) 3. Make your statement 4. All comments should be made to the Mayor and Council 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present 6. All comments limited to 3 minutes The Mayor will announce when the public comment period is closed, and thereafter, no further public comments will be heard by the Council. 5 of 210 ITEM NUMBER: A-1 DATE: 01/24/17 CITY OF ATASCADERO CITY COUNCIL DRAFT MINUTES Tuesday, January 10, 2017 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California REGULAR SESSION – CALL TO ORDER: 6:00 P.M. Mayor O’Malley called the meeting to order at 6:01 p.m. and Mayor Pro Tem Fonzi led the Pledge of Allegiance. ROLL CALL: Present: Council Members Bourbeau, Moreno, Mayor Pro Tem Fonzi, and Mayor O’Malley Absent: Council Member Sturtevant Others Present: City Clerk Marcia McClure Torgerson Staff Present: City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Community Development Director Phil Dunsmore, Public Works Director Nick DeBar, Police Chief Jerel Haley, Interim Fire Chief Casey Bryson, City Attorney Brian Pierik, and Deputy City Manager Lara Christensen. City Council Regular Session: 6:00 P.M. 6 of 210 ITEM NUMBER: A-1 DATE: 01/24/17 Atascadero City Council January 10, 2017 Page 2 of 7 APPROVAL OF AGENDA: MOTION: By Council Member Bourbeau and seconded by Council Member Moreno to: 1. Approve this agenda; and, 2. Waive the reading in full of all ordinances appearing on this agenda, and the titles of the ordinances will be read aloud by the City Clerk at the first reading, after the motion and before the City Council votes. Motion passed 4:0 by a roll-call vote. (Sturtevant absenet) Council Member Sturtevant arrived at the meeting. PRESENTATIONS: 1. Presentation of Police 10851 Award to Brett Mobley. Police Chief Haley presented Officer Mobley with the award for recovered stolen vehicles. The 10851 Award recognizes an officer that is proficient at recovering stolen vehicles, and is successful in the recovery of at least 12 vehicles within a calendar year. 2. Recognition of Fire and Police Personnel for the San Gabriel Incident. Interim Fire Chief Bryson honored the fire crew members listed below that responded to the structure fire on San Gabriel Road in September 2016, with Chief Commendation Awards. Captain Scott Hallett, Engineer Tom Little, Firefighter Brandon Roberts, Reserve Firefighter Stephen Cochran, Captain Bill White, Engineer Christopher Robinson, Firefighter Zach Jackson, and Reserve Firefighter Nathan Goosens. Police Chief Haley honored the dispatchers and police officers listed below that were involved with the structure fire on San Gabriel Road in September 2016, with Chief Commendation Awards. Dispatcher Shannon Neall, Dispatcher Anjanette Ordonez, Corporal John Taylor, Officer Chris Hall, Officer Steve Stuckey, and Officer Ryan Sloan. 7 of 210 ITEM NUMBER: A-1 DATE: 01/24/17 Atascadero City Council January 10, 2017 Page 3 of 7 3. Employee Recognition. The City Council presented a Proclamation to Mike Hubert to thank him for his service to Atascadero as Interim Fire Chief. 4. Presentation by Friends of Atascadero Lake/EP Aeration – Proposed Atascadero Lake Aeration Project. Rich Dennis of EP Aeration gave a presentation about their aeration system that is being offered to the City by the Friends of Atascadero Lake. Friends of the Lake member Don Lynge explained why they chose this type of system for the first phase. A. CONSENT CALENDAR: 1. City Council Draft Action Minutes – December 13 2016  Recommendation: Council approve the City Council Draft Action Minutes of the December 13, 2016 City Council meeting. [City Clerk] 2. November 2016 Accounts Payable and Payroll  Fiscal Impact: $2,374,101.90  Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for November 2016. [Administrative Services] 3. Measure F-14 – Voter Approved Appointive City Clerk  Fiscal Impact: Estimated savings in the amount of $14,800.  Recommendation: Council adopt on second reading by title only, the Draft Ordinance Amending Title 2, Chapters 6, 14 and 20 of the Atascadero Municipal Code by Stating the City Clerk is Appointive and Authorizing the City Manager to Appoint the City Clerk. [City Clerk] 8 of 210 ITEM NUMBER: A-1 DATE: 01/24/17 Atascadero City Council January 10, 2017 Page 4 of 7 4. Acceptance of Final Map for Tract 2515 – Encino Road (Messer) (FMP 2005-0109 for TTM 2003-0029 & RAB 2003-0012)  Fiscal Impact: None.  Recommendation: Council: 1. Accept Final Map for Tract 2515 (FMP 2005-0109); 2. Reject, without prejudice to future acceptance on behalf of the public by the Council of the City of Atascadero, the offers of dedication for public access and emergency access; and, 3. Authorize and direct the City Clerk to endorse the Council’s approval on the Map. [Community Development] Item #A-1: Council Member Bourbeau asked for clarification from Mayor O’Malley on the Committee appointments for the Design Review Committee. MOTION: By Mayor Pro Tem Fonzi and seconded by Council Member Bourbeau to approve the Consent Calendar. Motion passed 5:0 by a roll-call vote. (#A-3: Ordinance No. 605) UPDATES FROM THE CITY MANAGER: City Manager Rachelle Rickard gave an update on projects and issues within the City. COMMUNITY FORUM: The following citizens spoke during Community Forum: Jim Wilkins. Mayor O’Malley closed the COMMUNITY FORUM period. B. PUBLIC HEARINGS: None. 9 of 210 ITEM NUMBER: A-1 DATE: 01/24/17 Atascadero City Council January 10, 2017 Page 5 of 7 C. MANAGEMENT REPORTS: 1. Side Letters of Agreement for the Atascadero Police Officers Association, Mid-Management/Professional Employees Association, Service Employees International Union Local 620; Resolution for Non- Represented Professional and Management Workers and Confidential Employees; and Memorandum of Understanding for Atascadero Professional Firefighters Local 3600  Fiscal Impact: Total fiscal impact is $212,950.  Recommendations: Council: 1. Approve the Side Letters of Agreement for the Atascadero Police Officers Association, Mid-Management/Professional Employees Association, Service Employees International Union Local 620; and, 2. Adopt the Draft Resolution for Non-Represented Professional and Management Workers and Confidential Employees; and, 3. Approve the Memorandum of Understanding (MOU) for the Atascadero Professional Firefighters Local 3600; and 4. Approve the Salary Schedule for Fiscal Year 2016-2017; and 5. Approve the Salary Schedule for Fiscal Year 2015-2016; and 6. Authorize the Director of Administrative Services to appropriate $113,550 of General Funds for employee services. [City Manager] City Manager Rachelle Rickard gave the staff report and answered questions from the Council. PUBLIC COMMENT: None MOTION: By Council Member Moreno and seconded by Council Member Sturtevant to: 1. Approve the Side Letters of Agreement for the Atascadero Police Officers Association, Mid- Management/Professional Employees Association, Service Employees International Union Local 620; and, 2. Adopt the Draft Resolution for Non-Represented Professional and Management Workers and Confidential Employees; and, 3. Approve the Memorandum of Understanding (MOU) for the Atascadero Professional Firefighters Local 3600; and 4. Approve the Salary Schedule for Fiscal Year 2016 -2017; and 5. Approve the Salary Schedule for Fiscal Year 2015 -2016; and 6. Authorize the Director of Administrative Services to appropriate $113,550 of General Funds for employee services. 10 of 210 ITEM NUMBER: A-1 DATE: 01/24/17 Atascadero City Council January 10, 2017 Page 6 of 7 Motion passed 5:0 by a roll-call vote. (#2: Resolution No. 2017- 001, #3: Contract No. 2017-001) 2. Fiscal Year 2016 Annual Road Report  Fiscal Impact: Distribution of the 2016 Community Road Report is estimated to cost approximately $3,500 in budgeted General Funds.  Recommendations: Council: 1. Approve the Fiscal Year 2016 Annual Road Report; and, 2. Approve the Fiscal Year 2016 Community Road Report. [Public Works] Public Works Director Nick DeBar gave the staff report and answered questions from the Council. PUBLIC COMMENT: None MOTION: By Council Member Moreno and seconded by Council Member Bourbeau to: 1. Approve the Fiscal Year 2016 Annual Road Report; and, 2. Approve the Fiscal Year 2016 Community Road Report. Motion passed 5:0 by a roll-call vote. COUNCIL ANNOUNCEMENTS AND REPORTS: The City Council Members made brief announcements. D. COMMITTEE REPORTS: The following Council Members gave brief update reports on their committees since their last Council meeting: Mayor O’Malley 1. City / Schools Committee – Someday the Fire Station #1 will move because of the value of the property to the future of the Downtown. The School District is also considering the options available to them regarding the future of the property where the Fine Arts Academy now resides. 2. SLO Council of Governments (SLOCOG) – Reviewed Measure J. They also discussed road issues and funding. 11 of 210 ITEM NUMBER: A-1 DATE: 01/24/17 Atascadero City Council January 10, 2017 Page 7 of 7 Mayor Pro Tem Fonzi 1. County Mayors Roundtable Meeting – Discussed emergency mapping, which Atascadero already utilizes. Also, it was shared that there is an increase of car accidents on Highway 101 just south of Avila where the lanes reduce from 3 to 2. It has been determined that younger drivers have not b een taught to pull over if they are involved in a fender bender, causing traffic jams. Mayor Pro Tem Fonzi suggested that we educate our younger drivers on this issue. 2. SLO Local Agency Formation Commission (LAFCo) – Created a Water District in Shannon area to allow them a seat at the table of the Paso Robles Groundwater Basin. 3. City of Atascadero Design Review Committee – Will be hearing at the next meeting a proposal for a mini miniature golf course. 4. SLO County Water Resources Advisory Committee (WRAC) – Discussed new regulations for ag ponds. Council Member Bourbeau 1. Homeless Services Oversight Council – Council Member Bourbeau announced that he will be unable to attend the next meeting as he will be in Sacramento at the League’s New Mayor and Council Member Conference. E. INDIVIDUAL DETERMINATION AND / OR ACTION: 1. City Council Mayor O’Malley asked for Council consensus to have the issue of PACE to be placed on a future agenda. There was Council consensus to direct staff to bring the PACE issue back to the City Council, and encourage interested stakeholders to attend the meeting. F. ADJOURNMENT Mayor O’Malley adjourned the meeting at 8:33 p.m. MINUTES PREPARED BY: ______________________________________ Marcia McClure Torgerson, C.M.C. City Clerk 12 of 210 ITEM NUMBER: A-2 DATE: 01/24/17 13 of 210 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2016 2435 12/02/2016 STATE DISBURSEMENT UNIT 335.08Payroll Vendor Payment 2436 12/02/2016 HEALTHEQUITY, INC.5,513.01Payroll Vendor Payment 151214 12/02/2016 ATASCADERO MID MGRS ORG UNION 40.00Payroll Vendor Payment 151215 12/02/2016 ATASCADERO POLICE OFFICERS 1,149.00Payroll Vendor Payment 151216 12/02/2016 ATASCADERO PROF. FIREFIGHTERS 864.25Payroll Vendor Payment 151217 12/02/2016 HARTFORD LIFE INSURANCE 6,808.50Payroll Vendor Payment 151218 12/02/2016 NATIONWIDE RETIREMENT SOLUTION 518.19Payroll Vendor Payment 151219 12/02/2016 NAVIA BENEFIT SOLUTIONS 1,474.61Payroll Vendor Payment 151220 12/02/2016 SEIU LOCAL 620 986.14Payroll Vendor Payment 151221 12/02/2016 VANTAGEPOINT TRNSFR AGT 106099 335.64Payroll Vendor Payment 151222 12/02/2016 VANTAGEPOINT TRNSFR AGT 304633 2,862.30Payroll Vendor Payment 2437 12/05/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 23,816.34Payroll Vendor Payment 2438 12/05/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 38,395.94Payroll Vendor Payment 2439 12/05/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 1,896.81Payroll Vendor Payment 2440 12/05/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,433.72Payroll Vendor Payment 2441 12/05/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,724.43Payroll Vendor Payment 2442 12/05/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,539.58Payroll Vendor Payment 2443 12/05/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 6,232.52Payroll Vendor Payment 2444 12/06/2016 RABOBANK, N.A.58,440.70Payroll Vendor Payment 2445 12/06/2016 EMPLOYMENT DEV DEPARTMENT 15,840.40Payroll Vendor Payment 2446 12/06/2016 EMPLOYMENT DEV. DEPARTMENT 1,860.07Payroll Vendor Payment 151223 12/06/2016 ALLSTATE WORKPLACE DIVISION 2,463.69Payroll Vendor Payment 151224 12/06/2016 ANTHEM BLUE CROSS HEALTH 140,494.25Payroll Vendor Payment 151225 12/06/2016 LINCOLN NATIONAL LIFE INS CO 1,449.35Payroll Vendor Payment 151226 12/06/2016 MEDICAL EYE SERVICES 1,738.26Payroll Vendor Payment 151227 12/06/2016 PREFERRED BENEFITS INSURANCE 9,289.00Payroll Vendor Payment 151228 12/09/2016 ALL AMERICAN BOUNCE 350.00Accounts Payable Check 151229 12/09/2016 ALL SIGNS AND GRAPHICS, LLC 240.30Accounts Payable Check 151230 12/09/2016 ALTHOUSE & MEADE, INC.1,233.75Accounts Payable Check 151231 12/09/2016 ANDREW BROWN GENERAL ENG, INC.75,494.60Accounts Payable Check 151232 12/09/2016 AT&T 99.82Accounts Payable Check 151233 12/09/2016 AT&T 773.65Accounts Payable Check 151235 12/09/2016 ATASCADERO MUTUAL WATER CO.7,790.40Accounts Payable Check 151236 12/09/2016 BARTEL ASSOCIATES, LLC 3,000.00Accounts Payable Check 151237 12/09/2016 BREZDEN PEST CONTROL, INC.84.00Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/17 ATTACHMENT: 1 14 of 210 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2016 151238 12/09/2016 BRICK MARKERS USA 50.00Accounts Payable Check 151239 12/09/2016 CASEY BRYSON 443.00Accounts Payable Check 151240 12/09/2016 CA CODE CHECK, INC.3,961.25Accounts Payable Check 151241 12/09/2016 CHARTER COMMUNICATIONS 147.51Accounts Payable Check 151242 12/09/2016 CHEVRON & TEXACO BUS. CARD 954.42Accounts Payable Check 151243 12/09/2016 CO OF SAN LUIS OBISPO SART PRG 1,513.00Accounts Payable Check 151244 12/09/2016 COBAN TECHNOLOGIES, INC.518.40Accounts Payable Check 151245 12/09/2016 GUY R. COOPER 450.00Accounts Payable Check 151246 12/09/2016 CRYSTAL SPRINGS WATER 73.00Accounts Payable Check 151247 12/09/2016 MATTHEW J. CURRY 320.00Accounts Payable Check 151248 12/09/2016 CALEB M. DAVIS 179.00Accounts Payable Check 151249 12/09/2016 NICHOLAS DEBAR 300.00Accounts Payable Check 151250 12/09/2016 DIAMONDBACK FIRE & RESCUE, INC 12,312.00Accounts Payable Check 151251 12/09/2016 DRIVE CUSTOMS 6,674.08Accounts Payable Check 151252 12/09/2016 PHILIP DUNSMORE 300.00Accounts Payable Check 151253 12/09/2016 ECOLA SERVICES, INC.5,885.00Accounts Payable Check 151254 12/09/2016 ELECTRONIC GATE SYSTEMS, INC.48.00Accounts Payable Check 151255 12/09/2016 FEDERAL EXPRESS 5.93Accounts Payable Check 151256 12/09/2016 FEDEX OFFICE 1,018.87Accounts Payable Check 151257 12/09/2016 GAS COMPANY 436.34Accounts Payable Check 151258 12/09/2016 GEM AUTO PARTS 494.63Accounts Payable Check 151259 12/09/2016 HEATHER GREEN 140.00Accounts Payable Check 151260 12/09/2016 HAINES & COMPANY, INC.303.78Accounts Payable Check 151261 12/09/2016 SCOTT HALLETT 341.00Accounts Payable Check 151262 12/09/2016 EMILY HARRISON 42.00Accounts Payable Check 151263 12/09/2016 HINDERLITER, DE LLAMAS 4,194.87Accounts Payable Check 151265 12/09/2016 HOME DEPOT CREDIT SERVICES 5,291.22Accounts Payable Check 151266 12/09/2016 LYNDA HOREJSI 22.14Accounts Payable Check 151267 12/09/2016 IMPACT ABSORBENTS, INC.44.23Accounts Payable Check 151268 12/09/2016 THE INK CO.126.84Accounts Payable Check 151269 12/09/2016 J & S STRIPING COMPANY, INC.34,570.62Accounts Payable Check 151270 12/09/2016 JOE A. GONSALVES & SON 3,000.00Accounts Payable Check 151271 12/09/2016 BOB KELLEY 350.54Accounts Payable Check 151272 12/09/2016 KRITZ EXCAVATING & TRUCKNG INC 922.01Accounts Payable Check 151273 12/09/2016 LAUTZENHISER'S STATIONARY 603.25Accounts Payable Check 151274 12/09/2016 COLETTE LAYTON 341.00Accounts Payable Check 151275 12/09/2016 MADRONE LANDSCAPES, INC.99.50Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/17 ATTACHMENT: 1 15 of 210 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2016 151276 12/09/2016 MARTIN & CHAPMAN CO.36.20Accounts Payable Check 151277 12/09/2016 MINER'S ACE HARDWARE 229.52Accounts Payable Check 151278 12/09/2016 MATTHEW J. MIRANDA 245.00Accounts Payable Check 151279 12/09/2016 MISSION UNIFORM SERVICE 226.28Accounts Payable Check 151280 12/09/2016 DAVE MUEHLHAUSEN 144.00Accounts Payable Check 151281 12/09/2016 MV TRANSPORTATION, INC.10,670.10Accounts Payable Check 151282 12/09/2016 OFFICE DEPOT INC.983.75Accounts Payable Check 151283 12/09/2016 TARA ORLICK 52.92Accounts Payable Check 151286 12/09/2016 PACIFIC GAS AND ELECTRIC 43,234.87Accounts Payable Check 151287 12/09/2016 PAPICH CONSTRUCTION CO., INC.80,526.41Accounts Payable Check 151288 12/09/2016 PASO ROBLES FORD LINCOLN MERC 417.85Accounts Payable Check 151289 12/09/2016 DEAN PERICIC 25.00Accounts Payable Check 151290 12/09/2016 PROCARE JANITORIAL SUPPLY,INC.237.22Accounts Payable Check 151291 12/09/2016 JERI RANGEL 300.00Accounts Payable Check 151292 12/09/2016 ANGELA RAYHER 125.00Accounts Payable Check 151293 12/09/2016 RACHELLE RICKARD 500.00Accounts Payable Check 151294 12/09/2016 BRANDON ROBERTS 341.00Accounts Payable Check 151295 12/09/2016 SCOTT O'BRIEN FIRE & SAFETY CO 946.74Accounts Payable Check 151296 12/09/2016 SHELL 1,006.45Accounts Payable Check 151297 12/09/2016 THE SHERWIN-WILLIAMS COMPANY 70.03Accounts Payable Check 151298 12/09/2016 SPEAKWRITE, LLC.389.14Accounts Payable Check 151299 12/09/2016 STANLEY CONVERGENT SECURITY 778.41Accounts Payable Check 151300 12/09/2016 STATE WATER RES CONTROL BOARD 575.00Accounts Payable Check 151301 12/09/2016 STATE WATER RES CONTROL BOARD 230.00Accounts Payable Check 151302 12/09/2016 STATE WATER RES CONTROL BOARD 80.00Accounts Payable Check 151303 12/09/2016 STATE WATER RES CONTROL BOARD 575.00Accounts Payable Check 151304 12/09/2016 SUNLIGHT JANITORIAL, INC.1,497.00Accounts Payable Check 151305 12/09/2016 TEMPLETON UNIFORMS 314.10Accounts Payable Check 151306 12/09/2016 KRISTEN TINSLEY-RUSH 80.00Accounts Payable Check 151307 12/09/2016 TYLER TECHNOLOGIES, INC.17,013.09Accounts Payable Check 151308 12/09/2016 UNITED STAFFING ASSC., INC.875.16Accounts Payable Check 151309 12/09/2016 VERIZON WIRELESS 747.02Accounts Payable Check 151310 12/09/2016 WEST COAST AUTO & TOWING, INC.75.00Accounts Payable Check 151311 12/09/2016 WEX BANK - 76 UNIVERSL 11,093.82Accounts Payable Check 151312 12/09/2016 WILLIAMS FLOORING AMERICA, INC 465.00Accounts Payable Check 151313 12/15/2016 ATASCADERO MID MGRS ORG UNION 40.00Payroll Vendor Payment ITEM NUMBER: A-2 DATE: 01/24/17 ATTACHMENT: 1 16 of 210 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2016 151314 12/15/2016 ATASCADERO POLICE OFFICERS 1,149.00Payroll Vendor Payment 151315 12/15/2016 ATASCADERO PROF. FIREFIGHTERS 864.25Payroll Vendor Payment 151316 12/15/2016 HARTFORD LIFE INSURANCE 6,608.50Payroll Vendor Payment 151317 12/15/2016 NATIONWIDE RETIREMENT SOLUTION 550.38Payroll Vendor Payment 151318 12/15/2016 NAVIA BENEFIT SOLUTIONS 1,473.97Payroll Vendor Payment 151319 12/15/2016 VOID 0.00Payroll Vendor Payment 151320 12/15/2016 SEIU LOCAL 620 986.69Payroll Vendor Payment 151321 12/15/2016 VANTAGEPOINT TRNSFR AGT 106099 335.64Payroll Vendor Payment 151322 12/15/2016 VANTAGEPOINT TRNSFR AGT 304633 2,862.30Payroll Vendor Payment 2447 12/16/2016 STATE DISBURSEMENT UNIT 335.08Payroll Vendor Payment 2448 12/16/2016 HEALTHEQUITY, INC.5,913.01Payroll Vendor Payment 2449 12/16/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 23,856.21Payroll Vendor Payment 2450 12/16/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 37,847.44Payroll Vendor Payment 2451 12/16/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,092.31Payroll Vendor Payment 2452 12/16/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,401.65Payroll Vendor Payment 2453 12/16/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 1,247.17Payroll Vendor Payment 2454 12/16/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 3,469.40Payroll Vendor Payment 2455 12/16/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 6,338.98Payroll Vendor Payment 2456 12/20/2016 RABOBANK, N.A.52,104.70Payroll Vendor Payment 2457 12/20/2016 EMPLOYMENT DEV DEPARTMENT 13,672.11Payroll Vendor Payment 2458 12/20/2016 EMPLOYMENT DEV. DEPARTMENT 1,830.55Payroll Vendor Payment 151323 12/22/2016 5-STAR CONSTRUCTION 200.00Accounts Payable Check 151324 12/22/2016 MATTHEW R. AANERUD 40.00Accounts Payable Check 151325 12/22/2016 KATHRYN ACOSTA 60.00Accounts Payable Check 151326 12/22/2016 AGM CALIFORNIA, INC.105.00Accounts Payable Check 151327 12/22/2016 AGP VIDEO, INC.1,800.00Accounts Payable Check 151328 12/22/2016 ALL SIGNS AND GRAPHICS, LLC 611.86Accounts Payable Check 151329 12/22/2016 ALTHOUSE & MEADE, INC.487.50Accounts Payable Check 151330 12/22/2016 AMERICAN MARBORG 107.25Accounts Payable Check 151331 12/22/2016 AMERICAN WEST TIRE & AUTO INC 1,377.57Accounts Payable Check 151332 12/22/2016 ANTECH DIAGNOSTICS 39.84Accounts Payable Check 151333 12/22/2016 ASAP REPROGRAPHICS 552.96Accounts Payable Check 151334 12/22/2016 ASSC. OF ZOOS & AQUARIUMS 3,612.00Accounts Payable Check 151336 12/22/2016 AT&T 955.66Accounts Payable Check 151337 12/22/2016 AT&T 172.66Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/17 ATTACHMENT: 1 17 of 210 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2016 151338 12/22/2016 ATASCADERO APOSTOLIC CHURCH 25.00Accounts Payable Check 151339 12/22/2016 ATASCADERO HAY & FEED 1,487.07Accounts Payable Check 151340 12/22/2016 ATASCADERO MOOSE LODGE 25.00Accounts Payable Check 151341 12/22/2016 ATASCADERO NEWS 1,676.30Accounts Payable Check 151342 12/22/2016 TERRIE BANISH 41.00Accounts Payable Check 151343 12/22/2016 BANK OF NEW YORK MELLON 2,470.00Accounts Payable Check 151344 12/22/2016 BARNETT COX & ASSOCIATES 273.00Accounts Payable Check 151345 12/22/2016 TATIONA BARNHILL 25.00Accounts Payable Check 151346 12/22/2016 BASSETT'S CRICKET RANCH,INC.603.59Accounts Payable Check 151347 12/22/2016 KEITH R. BERGHER 33.75Accounts Payable Check 151348 12/22/2016 BERRY MAN, INC.590.15Accounts Payable Check 151349 12/22/2016 BIG RED MARKETING, INC.2,500.00Accounts Payable Check 151350 12/22/2016 JOHN BLAIR 152.78Accounts Payable Check 151351 12/22/2016 BOUND TREE MEDICAL, LLC 1,895.01Accounts Payable Check 151352 12/22/2016 SHIRLEY R. BRUTON 643.50Accounts Payable Check 151353 12/22/2016 BURKE,WILLIAMS, & SORENSON LLP 17,349.65Accounts Payable Check 151354 12/22/2016 CA ASSC OF ZOOS & AQUARIUMS 650.00Accounts Payable Check 151355 12/22/2016 CA CODE CHECK, INC.1,437.50Accounts Payable Check 151356 12/22/2016 CALACT 460.00Accounts Payable Check 151357 12/22/2016 CALPORTLAND COMPANY 3,132.50Accounts Payable Check 151358 12/22/2016 KATE CAPELA 40.67Accounts Payable Check 151359 12/22/2016 CAVENAUGH AND ASSC.1,076.00Accounts Payable Check 151360 12/22/2016 CHARTER COMMUNICATIONS 91.02Accounts Payable Check 151361 12/22/2016 LARA CHRISTENSEN 41.94Accounts Payable Check 151362 12/22/2016 KATHLEEN J. CINOWALT 108.50Accounts Payable Check 151363 12/22/2016 CITY CLERKS ASSC OF CALIF 185.00Accounts Payable Check 151364 12/22/2016 CLEVER CONCEPTS, INC.7,000.00Accounts Payable Check 151365 12/22/2016 COAST LINE DISTRIBUTING 153.80Accounts Payable Check 151366 12/22/2016 MIGUEL A. CORDERO 180.00Accounts Payable Check 151367 12/22/2016 CORELOGIC SOLUTIONS, LLC.125.00Accounts Payable Check 151368 12/22/2016 JOHN COUCH 600.00Accounts Payable Check 151369 12/22/2016 CRITICAL REACH, INC.285.00Accounts Payable Check 151370 12/22/2016 CRYSTAL SPRINGS WATER 324.45Accounts Payable Check 151371 12/22/2016 CULLIGAN/CENTRAL COAST WTR TRT 70.00Accounts Payable Check 151372 12/22/2016 SHARON J. DAVIS 276.50Accounts Payable Check 151373 12/22/2016 DEPARTMENT OF FORESTRY & FIRE 5,029.64Accounts Payable Check 151374 12/22/2016 DIVERSIFIED PROJECT SERVICES 1,316.25Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/17 ATTACHMENT: 1 18 of 210 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2016 151375 12/22/2016 EL CAMINO CAR WASH 14.99Accounts Payable Check 151376 12/22/2016 JASON EMFINGER 82.00Accounts Payable Check 151377 12/22/2016 ESCUELA DEL RIO 150.00Accounts Payable Check 151378 12/22/2016 FAILSAFE TESTING 60.00Accounts Payable Check 151379 12/22/2016 FARM SUPPLY COMPANY 48.54Accounts Payable Check 151380 12/22/2016 FDM SOFTWARE LTD.3,520.00Accounts Payable Check 151381 12/22/2016 FOOD FOR LESS 284.97Accounts Payable Check 151382 12/22/2016 GARAGISTE EVENTS, INC.1,000.00Accounts Payable Check 151383 12/22/2016 GAS COMPANY 412.09Accounts Payable Check 151384 12/22/2016 GEM AUTO PARTS 6.05Accounts Payable Check 151385 12/22/2016 GILBERT'S LANDSCAPES 407.91Accounts Payable Check 151386 12/22/2016 GLEN R. LEWIS, TRUSTEE 100,000.00Accounts Payable Check 151387 12/22/2016 GLENN'S REPAIR & RENTAL, INC.147.13Accounts Payable Check 151388 12/22/2016 BRADLEY A. HACKLEMAN 613.05Accounts Payable Check 151389 12/22/2016 HANLEY AND FLEISHMAN, LLP 758.50Accounts Payable Check 151390 12/22/2016 HERC RENTALS, INC.2,087.89Accounts Payable Check 151391 12/22/2016 HINDERLITER, DE LLAMAS 2,995.53Accounts Payable Check 151392 12/22/2016 ANN HOCHSTETLER 25.00Accounts Payable Check 151393 12/22/2016 LARA HUSKEY 19.44Accounts Payable Check 151394 12/22/2016 EVELYN R. INGRAM 644.00Accounts Payable Check 151395 12/22/2016 INHOUSE SECURITY SERVICE, LLC 105.00Accounts Payable Check 151396 12/22/2016 J. CARROLL CORPORATION 166.45Accounts Payable Check 151397 12/22/2016 JIFFY LUBE 77.89Accounts Payable Check 151398 12/22/2016 JK'S UNLIMITED 581.33Accounts Payable Check 151399 12/22/2016 JOE A. GONSALVES & SON 3,000.00Accounts Payable Check 151400 12/22/2016 K PENCE CONSULTING 460.00Accounts Payable Check 151401 12/22/2016 BRENDAN P. KELSO 245.00Accounts Payable Check 151402 12/22/2016 KIDZ LOVE SOCCER 2,712.50Accounts Payable Check 151403 12/22/2016 WADE S. KNOWLES 281.00Accounts Payable Check 151404 12/22/2016 KPRL 1230 AM 320.00Accounts Payable Check 151405 12/22/2016 KSBY COMMUNICATIONS, LLC 2,360.00Accounts Payable Check 151406 12/22/2016 L.N. CURTIS & SONS 35.29Accounts Payable Check 151407 12/22/2016 LAYNE LABORATORIES, INC.1,096.20Accounts Payable Check 151408 12/22/2016 LEE WILSON ELECTRIC CO. INC 2,856.00Accounts Payable Check 151409 12/22/2016 LIFE ASSIST, INC.262.39Accounts Payable Check 151410 12/22/2016 CRAIG C. LOWRIE 100.00Accounts Payable Check 151411 12/22/2016 ANNA LUKE 82.00Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/17 ATTACHMENT: 1 19 of 210 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2016 151412 12/22/2016 MADRONE LANDSCAPES, INC.7,053.52Accounts Payable Check 151413 12/22/2016 WILLIAM H. MANDZIUK 200.00Accounts Payable Check 151414 12/22/2016 BECKY MAXWELL 47.74Accounts Payable Check 151415 12/22/2016 SAMUEL HENRY MCMILLAN, JR.180.00Accounts Payable Check 151416 12/22/2016 SAMUEL H. MCMILLAN, SR.40.00Accounts Payable Check 151417 12/22/2016 MICHAEL K. NUNLEY & ASSC, INC.1,386.25Accounts Payable Check 151418 12/22/2016 MINER'S ACE HARDWARE 723.79Accounts Payable Check 151419 12/22/2016 MISSION UNIFORM SERVICE 332.62Accounts Payable Check 151420 12/22/2016 REON C MONSON 228.00Accounts Payable Check 151421 12/22/2016 MOSS, LEVY, & HARTZHEIM LLP 1,000.00Accounts Payable Check 151422 12/22/2016 PAUL NETZ 465.00Accounts Payable Check 151423 12/22/2016 NEW TIMES 669.00Accounts Payable Check 151424 12/22/2016 NORTH COAST ENGINEERING INC.15,959.78Accounts Payable Check 151425 12/22/2016 OFFICE DEPOT INC.800.83Accounts Payable Check 151426 12/22/2016 ONTRAC 5.35Accounts Payable Check 151427 12/22/2016 ANJANETTE ORDONEZ 25.00Accounts Payable Check 151428 12/22/2016 RON OVERACKER 281.00Accounts Payable Check 151429 12/22/2016 PERRY'S ELECTRIC MOTORS & CTRL 2,840.71Accounts Payable Check 151430 12/22/2016 PROCARE JANITORIAL SUPPLY,INC.1,115.81Accounts Payable Check 151431 12/22/2016 QUINCY ENGINEERING, INC.31,939.62Accounts Payable Check 151432 12/22/2016 R. BURKE CORPORATION 224,683.78Accounts Payable Check 151433 12/22/2016 RANGE MASTER 38.00Accounts Payable Check 151434 12/22/2016 RECOGNITION WORKS 142.56Accounts Payable Check 151435 12/22/2016 RICK ENGINEERING COMPANY 3,208.44Accounts Payable Check 151436 12/22/2016 RACHELLE RICKARD 15.00Accounts Payable Check 151437 12/22/2016 AMANDA C. ROSE 28.24Accounts Payable Check 151438 12/22/2016 ROSSI TRANSPORT SERVICE 2,357.64Accounts Payable Check 151439 12/22/2016 S. LOMBARDI & ASSOCIATES 3,935.00Accounts Payable Check 151440 12/22/2016 SAM'S TREE SERVICE 475.00Accounts Payable Check 151441 12/22/2016 SANTA MARIA SUN, LLC 388.00Accounts Payable Check 151442 12/22/2016 SERVICE SYSTEMS ASSC, INC.2,000.00Accounts Payable Check 151443 12/22/2016 SHORIN-RYU KARATE 224.00Accounts Payable Check 151444 12/22/2016 KATHERYN & NEAL SHOWERS 433.33Accounts Payable Check 151445 12/22/2016 JOHN C. SIEMENS 22.05Accounts Payable Check 151446 12/22/2016 SLO COUNTY SHERIFF'S OFFICE 159.00Accounts Payable Check 151447 12/22/2016 DAVID L. SMAW 120.00Accounts Payable Check 151448 12/22/2016 MARY P. SMITH 1,108.95Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/24/17 ATTACHMENT: 1 20 of 210 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2016 151449 12/22/2016 SOCALZ 5,000.00Accounts Payable Check 151450 12/22/2016 SPECIES 360 1,304.63Accounts Payable Check 151451 12/22/2016 SPECTRUM REACH 335.00Accounts Payable Check 151452 12/22/2016 STAPLES CREDIT PLAN 264.40Accounts Payable Check 151453 12/22/2016 STATE BOARD OF EQUALIZATION 647.00Accounts Payable Check 151454 12/22/2016 STATE BOARD OF EQUALIZATION 315.97Accounts Payable Check 151455 12/22/2016 STATEWIDE TRAFFIC SAFETY&SIGNS 235.66Accounts Payable Check 151456 12/22/2016 KURT W. STONE 800.00Accounts Payable Check 151457 12/22/2016 SUNLIGHT JANITORIAL, INC.1,700.00Accounts Payable Check 151458 12/22/2016 CHRISTOPHER DANIEL THOMAS 80.00Accounts Payable Check 151459 12/22/2016 TRIBUNE 6,130.73Accounts Payable Check 151465 12/22/2016 U.S. BANK 28,846.76Accounts Payable Check 151466 12/22/2016 U.S. POSTMASTER 1,914.37Accounts Payable Check 151467 12/22/2016 U.S. POSTMASTER 45.05Accounts Payable Check 151468 12/22/2016 ULTREX BUSINESS PRODUCTS 472.28Accounts Payable Check 151469 12/22/2016 UNITED STAFFING ASSC., INC.2,625.48Accounts Payable Check 151470 12/22/2016 IWINA M. VAN BEEK 216.00Accounts Payable Check 151471 12/22/2016 VERDIN 11,502.53Accounts Payable Check 151472 12/22/2016 VERIZON WIRELESS 1,270.52Accounts Payable Check 151473 12/22/2016 VISIT SAN LUIS OBISPO COUNTY 1,300.00Accounts Payable Check 151474 12/22/2016 VISITOR TELEVISION LLC 640.00Accounts Payable Check 151475 12/22/2016 WALLACE GROUP 1,579.20Accounts Payable Check 151476 12/22/2016 WEST COAST AUTO & TOWING, INC.943.36Accounts Payable Check 151477 12/22/2016 WESTERN JANITOR SUPPLY 505.98Accounts Payable Check 151478 12/22/2016 WULFING'S BACKGROUND & POLYGR 2,000.00Accounts Payable Check 151479 12/22/2016 KAREN B. WYKE 459.60Accounts Payable Check 151480 12/22/2016 ZOO MED LABORATORIES, INC.981.46Accounts Payable Check 151481 12/29/2016 ATASCADERO PROF. FIREFIGHTERS 864.25Payroll Vendor Payment 151482 12/29/2016 HARTFORD LIFE INSURANCE 6,058.50Payroll Vendor Payment 151483 12/29/2016 NATIONWIDE RETIREMENT SOLUTION 526.19Payroll Vendor Payment 151484 12/29/2016 SEIU LOCAL 620 975.17Payroll Vendor Payment 151485 12/29/2016 VANTAGEPOINT TRNSFR AGT 106099 335.64Payroll Vendor Payment 151486 12/29/2016 VANTAGEPOINT TRNSFR AGT 304633 1,862.30Payroll Vendor Payment 2459 12/30/2016 STATE DISBURSEMENT UNIT 335.08Payroll Vendor Payment 2460 12/30/2016 HEALTHEQUITY, INC.7,005.82Payroll Vendor Payment 2461 12/30/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 24,023.85Payroll Vendor Payment ITEM NUMBER: A-2 DATE: 01/24/17 ATTACHMENT: 1 21 of 210 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2016 2462 12/30/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 37,595.34Payroll Vendor Payment 2463 12/30/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 1,766.32Payroll Vendor Payment 2464 12/30/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,398.97Payroll Vendor Payment 2465 12/30/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 1,332.48Payroll Vendor Payment 2466 12/30/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 3,166.28Payroll Vendor Payment 2467 12/30/2016 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 6,302.29Payroll Vendor Payment $1,508,943.63 ITEM NUMBER: A-2 DATE: 01/24/17 ATTACHMENT: 1 22 of 210 ITEM NUMBER: C-1 DATE: 01/24/17 Atascadero City Council Staff Report – Administrative Services Department Fiscal Year 2015-2016 Audit RECOMMENDATION: Council review and accept the financial audit for the period ended June 30, 2016. 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 financial performance was better than expected during the fiscal year 2015- 2016. This was due to a number of factors, such as the forward movement in the economy, Council’s focus on economic development and tourism, and the continued efforts with fiscal stewardship by both Council and Staff. While results across City funds were positive, most questions relate to the results of the General Fund. The General Fund is the fund in which property tax revenue and sales tax revenue are collected, and from which a majority of the City’s operational costs are spent. In addition, the revenue from the Sales Tax Measure F-14 is also collected in the General Fund for legal and accounting practice reasons. General Fund Activity, Excluding Measure F-14 Activity General Fund revenues, other than Measure F-14 revenues, were just under $20.2 million for the fiscal year. General Fund expenditures, other than Measure F -14 expenditures, were about $19.4 million during the year. The net change in fund balance for the General Fund excluding the Measure F-14 activity was an increase of about $805,000. The seven- year forecast projected a net loss of $425,000. This is a positive difference between actual and projections of about $1.2 million. 23 of 210 ITEM NUMBER: C-1 DATE: 01/24/17 The City’s two top revenue sources, property tax and sales tax, contributed $182,000 toward the variance between actual and budget figures. Transient Occupancy Tax revenue came in about $272,000 in excess of estimates. Mutual Aid activity contributed another $135,000. While other revenues and expenses were up or down from budget somewhat, the bulk of the remainder of the swing between originally budgeted net loss of $425,000 in the General Fund to the $805,000 gain was due to operating costs including salary savings for unfilled positions, or new employees that came in at salary steps lower than the prior employee. General Fund Activity - Measure F-14 Activity Measure F-14 Sales Tax revenue was about $2.1 million for the fiscal year. Expenditures were about $218,000. The net change in fund balance was $1.9 million. Measure F-14 and non-Measure F-14 activity combined to increase the General Fund by about $2.7 million during the year. The General Fund balance at the end of the year, including the Measure F-14 funds, was $11,638,707. General Fund activity for fiscal year 2015-2016 is summarized in the following chart: Measure F-14 Non-Measure F-14 Total General Fund Revenues 2,125,902$ 20,155,959$ 22,281,861$ Expenditures 217,962 19,350,338 19,568,300 Net changes in Fund balance 1,907,940 805,621 2,713,561 Beginning Fund Balance 465,960 8,459,186 8,925,146 Ending Fund Balance 2,373,900$ 9,264,807$ 11,638,707$ Council’s long-term Financial Strategy, as further detailed in the City’s Seven Year Projection, is to supplement annual revenues with General Fund reserves during the lean years in order to continue to fund City operations at a steady level. As projected, revenues are beginning to trend upwards once again, reducing, but not eliminating, the reliance on General Fund reserves. Fiscal year 2015 -2016 results were beneficial to the General Fund balance. To get a better sense of the trending, the Comparative Income Statement on the next page compares revenues and expenditures for the 2014-2015 and 2015-2016 fiscal years. Not all differences indicate a trend, but it is helpful to view the larger picture in perspective. This Statement does not include the Measure F-14 Activity. 24 of 210 ITEM NUMBER: C-1 DATE: 01/24/17 2014/2015 Actuals 2015/2016 Actuals % Change $ Change REVENUES: Property Tax 7,741,527$ 8,134,278$ 5.1%392,751$ RPTTF 131,077 181,523 38.5%50,446 Sales tax 3,428,731 3,812,457 11.2%383,726 Other Taxes 2,212,563 2,599,953 17.5%387,390 Intergovernmental 203,137 137,993 -32.1%(65,144) Grants 166,837 103,203 -38.1%(63,634) Service Charges Mutual Aid 511,899 758,524 48.2%246,625 Public safety 218,510 188,758 -13.6%(29,752) Development 1,264,017 1,114,383 -11.8%(149,634) Recreation, zoo, parks & pavilion 810,484 866,488 6.9%56,004 Interest 46,309 105,686 128.2%59,377 Interfund charges 673,738 804,164 19.4%130,426 Other 1,326,178 957,459 -27.8%(368,719) Transfers 372,470 391,090 5.0%18,620 Total revenues 19,107,477$ 20,155,959$ 5.5%1,048,482$ EXPENDITURES: Employee services (13,254,966)$ (13,429,637)$ 1.3%(174,671)$ (4,491,737) (4,835,994) 7.7%(344,257) Special purchases (789,322) (370,934) -53.0%418,388 Capital outlay (732,778) (713,773) -2.6%19,005 Total expenses (19,268,803) (19,350,338) 0.4%(81,535)$ NET INCOME (161,326)$ 805,621$ Operating supplies & services GENERAL FUND COMPARATIVE INCOME STATEMENT Excluding Measure F-14 Activity The Seven-Year forecast will be updated as part of the development of the fiscal years 2017-2019 budget process and will give further information on performance and trending of the General Fund. Revenues The most significant deviations from the prior year on the revenue side are changes in Property Tax Revenue, Sales Tax Revenue, Other Taxes, and Other Revenues. 25 of 210 ITEM NUMBER: C-1 DATE: 01/24/17 Property Tax Revenue During the economic downturn, Property Tax Revenue hit the lowest level during fiscal year 2011-2012. During the last four years, assessed valuation has been slowly increasing. Revenue increased less than one percent from fiscal year 2011 -2012 to 2012-2013. These revenues grew additional momentum and saw a 5.6% increase from the 2014-2015 fiscal year to the 2015-2016 fiscal year. The increase is due to a combination of the upswing in the economy, reclaimed value on the Proposition 8 assessed valuation write-downs during the downturn, and increased economic development activity. Assessed valuations are expected to continue a slow and steady growth trend for the next few years. Detailed, comparative Property Tax Revenue information for the most recently completed two fiscal years is found below: 2014/2015 Actuals 2015/2016 Actuals % Change $ Change Secured Property Tax 5,145,669$ 5,403,114$ 5.0%257,445$ Property tax in lieu of VLF 2,316,976 2,450,630 5.8%133,654 Unsecured property tax 141,350 143,166 1.3%1,816 Supplemental property tax 141,555 143,312 1.2%1,757 Redevelopment agency distribution 131,077 181,523 38.5%50,446 Prior year secured and unsecured (3,952) (5,680) 43.7%(1,728) Property tax penalities and interest (71) (264) 271.8%(193) Total revenues 7,872,604$ 8,315,801$ 5.6%443,197$ GENERAL FUND PROPERTY TAX REVENUE COMPARISON Sales Tax Revenue As indicated above, Sales Tax Measure F-14 activity must be included in the General Fund for financial reporting purposes. The Sales Tax Measure F-14 revenue is not included in the following discussion of Sales Tax Revenue. The City’s Bradley-Burns sales tax revenue is up about 11% (about $384,000) over fiscal year 2014-2015, primarily due to a one-time adjustment for the close-out of the State’s “Triple Flip”. Outside of this adjustment, Sales Tax was basically flat. Economic recovery, continued strengthening of existing retail outlets, and the establishment of new retail outlets through the City’s economic development focus are all positive factors that take time to cultivate, but eventually will reflect favorably on Sales Tax Revenue in the long- term. Other Taxes Other Taxes include revenues such as Transient Occupancy Tax (TOT), Franchise Fees, and Business Licenses. TOT revenues were up about $387,000 over the prior year. Other Revenue 26 of 210 ITEM NUMBER: C-1 DATE: 01/24/17 The category of Other Revenue includes a number of revenue sources such as donations and administrative charges. Other Revenue for fiscal year 2015-2016 was about $369,000 less than fiscal year 2014-2015, primarily due to one-time donations that occurred in fiscal year 2014-2015. Expenditures Employee Services Employee Services actual costs for 2015 -2016 were about 1.3% higher than in the prior year. This was also about 4% under the 2015-2016 fiscal year budget. Some of these savings were a result of positions were either vacant for an extended period, and/or were funded at a lower rate than budgeted. Additionally, health care costs for the 2015-2016 did not increase as much as was budgeted for. Operating Supplies and Services Operating budgets in fiscal year 2015-2016 continued to be tight. When compared to fiscal year 2014-2015, 2015-2016 expenditures were about $344,000 higher. The underlying trend is an increase in operating costs to reflect both the increasing prices due to economic recovery and the unsustainably low operating budgets that have been part of the overall Financial Strategy. Special Purchases and Capital Outlay Special Purchases and Capital Outlay generally do not lend themselves to a predictable trend line. These are usually one -time purchases and/or they have a corresponding revenue source. Both categories vary from year to year, based on the City’s needs at the time. In most cases, when the expenses come in under budget, this means the budgeted item hasn’t been purchased yet but will still need to be purchased in t he future. Less frequently, an alternative to purchasing the items has been identified. General Fund Balance As discussed above, the General Fund balance at June 30, 2016, was about $11.6 million, or 59% 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 Seven Year Projection in the current budget document estimates the continued use of General Fund reserves through fiscal year 2019-2020. At no time are reserves expected to drop below the Council Policy minimum of 20% of general fund expenditures. Again, the Seven-Year forecast will be updated during the upcoming budget process. Accounting Standards Changes The City implemented the Government Accounting Standards Board (GASB) Statements No. 68 (GASB 68) and No. 71 (GASB 71) regarding pension reporting during fiscal year 2014-2015. These Statements continue to have an effect on the City’s reported Net Pension Liability. GASB issued the new Statements in the effort to provide additional transparency on long-term pension obligations in annual financial reports. The City now receives two types of actuarial reports for each of its CalPERS pension plans: one type for funding contributions and a second type for accounting valuation for financial reporting. The accounting valuations for financial reporting will use new fiscally conservative pension measurements. Additionally in these reports, economic 27 of 210 ITEM NUMBER: C-1 DATE: 01/24/17 gains/losses and demographic changes will amortize over an accelerated period. However, cash flow and contribution rates are not impacted by the change in accounting standards. As a result of these reporting changes, the City’s Net Pension Liability at the end of the year was $19,099,492. This is an increase of $2.9 million over the prior year, primarily due to changes in the Public Agency Cost-Sharing Multiple Employer Defined Benefit Pension Plan. This figure is used for reporting purposes, and the City’s rates are not defined by this figure but by the actuarial valuations calculated by CalPERS. Other GASB Statements were implemented during the fiscal year, but had minimal impact on reporting. 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. The auditors issued an additional report, the Independent Auditors’ Report on Internal Control. This report follows as Attachment #2 and indicates that the auditors did not identify any deficiencies in internal control that they consider to be material weaknesses and found no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. FISCAL IMPACT: None. ATTACHMENTS: 1. Fiscal Year 2015-2016 Audited City Financial Statements 2. Independent Auditors’ Report on Internal Control 28 of 210 CITY OF ATASCADERO FINANCIAL STATEMENTS June 30, 2016 Item Number: C-1 Date: 01/24/17 Attachment: 1 29 of 210 FINANCIAL STATEMENTS June 30, 2016 Tom O’Malley, MAYOR Heather Moreno, MAYOR PRO TEMPORE Roberta Fonzi, COUNCIL MEMBER Bob Kelley, COUNCIL MEMBER Brian Sturtevant, COUNCIL MEMBER Rachelle Rickard, CITY MANAGER Prepared by the Department of Administrative Services Item Number: C-1 Date: 01/24/17 Attachment: 1 30 of 210 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2016 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 ………………………………………………75 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Detail………………………………………………77 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - In Lieu Low/Moderate Income Housing Fund………………………………………………94 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Circulation System Fees Fund………………………………………………95 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Fire Aerial Vehicle Impact Fees Fund………………………………………………96 Schedule of Funding Progress for Postemployment Benefits Other Than Pensions……………………………………………………………………………………………97 i Item Number: C-1 Date: 01/24/17 Attachment: 1 31 of 210 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2016 Required Supplementary Information (continued): 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………………………………………………………………………………………………………………106 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds…………………………………..………………111 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Supplemental Law Enforcement Services 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……………………………………………………………………………………………………………………………………………..121 Street Assessment Fund……………………………………………………………………………………………………………………………………………………..122 General Government Facilities Fees Fund……………………………………………………………………………………………………………………………………..123 Storm Drainage Facilities Fees Fund…………………………………………………………………………………………………………………………………………….124 Law Enforcement Facilities Fees Fund…………………………………………………………………………………………………………………………………….125 Fire Facilities Fees Fund…………………………………………………………………………………………………………………………………………………………..126 Open Space Acquisition Fees Fund……………………………………………………………………………………………………………………………………………….127 Parkland Facilities Fees Fund………………………………………………………………………………………………………………………………………………………128 Public Facilities Fees Fund………………………………………………………………………………………………………………………………………………………129 Library Expansion Facilities Fees Fund………………………………………………………………………………………………………………………………………………130 Community Facilities District Fund…………………………...………………..…………………………………………………………………………………………..131 ii Item Number: C-1 Date: 01/24/17 Attachment: 1 32 of 210 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2016 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………….……………………………………………………………………………………………132 Apple Valley Landscape & Lighting Assessment District Fund…………………..…………………………………………………………………………………………133 Las Lomas Street & Storm Drain Assessment District Fund……………………...………………………………………………………………………………………134 Las Lomas Landscape & Lighting Assessment District Fund…………………………...……………………………………………………………………………………135 De Anza Street & Storm Drain Assessment District Fund…………………………..…………………………………………………………………………………136 De Anza Landscape & Lighting Assessment District Fund…………………………...…………………………………………………………………………………137 Capital Projects Fund……………………………………………………………………………………………………………………………………………………………138 2010 Bond Proceeds Master Agreement Fund……………………………………………………………………………………………………………………………………………………………139 Historic City Hall Rehabilitation Fund……………………………………………………………………………………………………………………………………………………………140 Youth Center Construction Fund………………………………………………………………………………………………………………………………………….141 Assessment District #4 Debt Service Fund…………………………………………………………………………………………………………………………………….142 1992 Street Assessment Improvement Fund…………………………………………………………………………………………………………………………..143 Combining Statement of Net Position - Internal Service Funds……………………………………………………………………………………………………………………144 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds…………………………………………………………………..146 Combining Statement of Cash Flows - Internal Service Funds……………………………………………………………………………………………………………..148 iii Item Number: C-1 Date: 01/24/17 Attachment: 1 33 of 210 Moss, Levy & Hartzheim LLPCertified Public Accountants 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455 Tel 805.925.2579 Fax 805.925.2147 mlhcpas.com BEVERLY HILLS · CULVER CITY · SANTA MARIA INDEPENDENT AUDITORS’ REPORT City Council of the City of Atascadero Atascadero, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atascadero (the City), as of and for the fiscal year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atascadero, as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Change in Accounting Principles As discussed in note 1 to the basic financial statements effective July 15, 2015, the City of Atascadero adopted Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value 1 Item Number: C-1Date: 01/24/17Attachment: 1 34 of 210 Measurement and Application, Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, and Statement No. 79, Certain External Investment Pools and Pool Participants. The City also early implemented Statement No. 82, Pension Issues-an amendment of GASB Statement No. 67, No. 68, and No. 73, during the fiscal year. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on page 3 through 12, the budgetary comparison information on pages 75 through 96, the schedule of funding progress for post-employment benefits other than pensions on page 97, the schedule of proportionate share of net pension liability on page 98, and the schedule of 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 non-major 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 non-major 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 January 3, 2017, 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 January 3, 2017 2 Item Number: C-1Date: 01/24/17Attachment: 1 35 of 210 3 MANAGEMENT’S DISCUSSION AND ANALYSIS Fiscal Year Ended June 30, 2016 INTRODUCTION This discussion and analysis of the City of Atascadero’s financial performance provides an overview of the City’s financial a ctivities for the fiscal year ended June 30, 2016. 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, 201 6, by about $174.8 million. Of this amount, $129.1 million is net investment in capital assets, $37.9 million is restricted for various purposes, and $7.8 million is unrestricted.  Capital projects expenditures were less than the amount spent in the prior fiscal year by about $400,000 due primarily to the conclusion of the rehabilitation of the Historic City Hall.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $49 million, an increase of $5 million from the prior fiscal year. Approximately $37.9 million of the total is not available for more spending because it represents amounts that are already obligated or restricted, including $17 million in advances receivables from the Successor Agency and $5.2 million in notes receivable for affordable housing. About $9.3 million of the ending fund balance is available for future obligations.  The City’s compensated absences due to employees decreased by $20,078, and the City’s debt increased by about $2.7 million. This increase was primarily due to the City’s change in CalPERS Net Pension 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 w as $10,100,896 or 52% of total general fund expenditures, $2,373,900 of which is related to the Sales Tax Measure F-14 funding. The increase in this unassigned fund balance over the prior year is $2,710,978, $1,907,940 of which is related to Measure F-14 funding. Item Number: C-1 Date: 01/24/17 Attachment: 1 36 of 210 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2016 4 OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements presented herein include the activities of the City of Atascadero using the integrated approach as p rescribed by Governmental Accounting Standards Board (GASB) Statement No. 34. Government-Wide Financial Statements The Government-W ide Financial Statements present a broad overview of the financial picture of the City from the economic resources measuremen t focus using the accrual basis of accounting. They present governmental act ivities and business-type activities separately. These statements include all assets of the City (including infrastructure) as well as all liabilities (including long -term debt). 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 and liabilities, 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 Succes sor Agency identified in each community. In Atascadero, the City became the Successor Agency and holds these assets and liabiliti es in Private Purpose Trust. See Note 14 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 and No. 61. 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 demon strate compliance with finance-related legal requirements. The funds of the City are divided into two categories of activities – governmental and proprietary. Item Number: C-1 Date: 01/24/17 Attachment: 1 37 of 210 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2016 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 maj or 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 Se rvice 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 Intern al 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. Notes to the Basic Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Item Number: C-1 Date: 01/24/17 Attachment: 1 38 of 210 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2016 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, asset s exceeded liabilities by almost $175 million at the close of the most recent fiscal year. 2015-2016 Governmental Activities 2015-2016 Business-Type Activities 2015-2016 Total 2014-2015 Governmental Activities 2014-2015 Business-Type Activities 2014-2015 Total 59,456,836$ 10,643,587$ 70,100,423$ 54,888,641$ 10,042,825$ 64,931,466$ 127,024,659 15,606,829 142,631,488 128,327,725 16,378,502 144,706,227 Total assets 186,481,495 26,250,416 212,731,911 183,216,366 26,421,327 209,637,693 4,173,383 124,516 4,297,899 2,198,251 72,187 2,270,438 Total deferred outflows 4,173,383 124,516 4,297,899 2,198,251 72,187 2,270,438 3,613,478 309,662 3,923,140 4,307,772 228,382 4,536,154 35,571,198 577,310 36,148,508 32,811,456 650,982 33,462,438 Total liabilities 39,184,676 886,972 40,071,648 37,119,228 879,364 37,998,592 2,106,757 62,857 2,169,614 3,954,878 176,551 4,131,429 Total deferred inflows 2,106,757 62,857 2,169,614 3,954,878 176,551 4,131,429 113,511,857 15,606,829 129,118,686 114,888,338 16,378,502 131,266,840 37,874,167 - 37,874,167 35,532,844 - 35,532,844 (2,022,579) 9,818,274 7,795,695 (6,080,671) 9,059,097 2,978,426 Total net position 149,363,445$ 25,425,103$ 174,788,548$ 144,340,511$ 25,437,599$ 169,778,110$ 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 d ebt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional 22% of the City’s net position represents resources subject to external restrictions on how they may be used. The remaining 4% ($7,795,695) is considered unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. There was an increase of $4,817,269 in unrestricted net position from fiscal year 2014-2015 to 2015-2016. Item Number: C-1 Date: 01/24/17 Attachment: 1 39 of 210 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2016 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 $5 million. Information about changes in net position is summarized below: 2015-2016 Governmental Activities 2015-2016 Business-Type Activities 2015-2016 Total 2014-2015 Governmental Activities 2014-2015 Business-Type Activities 2014-2015 Total Revenues: Program Revenues Charges for services 3,331,208$ 2,160,494$ 5,491,702$ 3,226,963$ 2,138,891$ 5,365,854$ Operating grants and contributions 1,734,165 329,378 2,063,543 2,449,301 338,329 2,787,630 Capital grants and contributions 2,927,653 - 2,927,653 4,615,919 64,461 4,680,380 General Revenues: Secured and unsecured property taxes 8,995,183 - 8,995,183 8,528,514 - 8,528,514 Sales and use taxes 5,907,573 - 5,907,573 3,901,009 - 3,901,009 Other taxes 2,886,228 - 2,886,228 2,419,424 - 2,419,424 Motor Vehicle in Lieu 11,769 - 11,769 11,756 - 11,756 Investment Income 1,254,114 179,009 1,433,123 925,073 72,474 997,547 Gain on disposal of capital assets - - - - 1,800 1,800 Total Revenues 27,047,893 2,668,881 29,716,774 26,077,959 2,615,955 28,693,914 SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2016 and 2015 Item Number: C-1 Date: 01/24/17 Attachment: 1 40 of 210 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2016 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued) 2015-2016 Governmental Activities 2015-2016 Business-Type Activities 2015-2016 Total 2014-2015 Governmental Activities 2014-2015 Business-Type Activities 2014-2015 Total Program Expenses General Government 2,722,773$ -$ 2,722,773$ 2,351,957$ -$ 2,351,957$ Public Safety 10,160,806 - 10,160,806 10,835,324 - 10,835,324 Community Development 1,970,389 - 1,970,389 1,593,527 - 1,593,527 Community, Recreation & Zoo Services 2,368,234 - 2,368,234 2,313,255 - 2,313,255 Parks & Open Space 759,621 - 759,621 1,117,854 - 1,117,854 Public Works 3,293,532 - 3,293,532 3,342,661 - 3,342,661 Sewer - 2,237,196 2,237,196 - 2,215,761 2,215,761 Transit - 444,181 444,181 - 444,502 444,502 Interest on long-term debt 749,604 - 749,604 756,828 - 756,828 Total Expenses 22,024,959 2,681,377 24,706,336 22,311,406 2,660,263 24,971,669 Change in net position 5,022,934 (12,496) 5,010,438 3,766,553 (44,308) 3,722,245 Net position- beginning 144,340,511 25,437,599 169,778,110 154,650,559 26,218,787 180,869,346 Prior year adjustment - - - (14,076,601) (736,880) (14,813,481) Adjusted Net position- beginning 144,340,511 25,437,599 169,778,110 140,573,958 25,481,907 166,055,865 Net position- ending 149,363,445$ 25,425,103$ 174,788,548$ 144,340,511$ 25,437,599$ 169,778,110$ SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2016 and 2015 Governmental activities during the year increased the City’s net position by $5,022,934. Business-type activities decreased the City’s net position by $12,496. Item Number: C-1 Date: 01/24/17 Attachment: 1 41 of 210 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2016 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, 2016, the City’s governmental funds reported combined ending fund balances of $49,002,375. Approximately 3% ($1,538,541) of this total amount cannot be spent because it is in a non-spendable form and/or a non-cash form such as prepaid items, long-term notes receivable, and long-term advances receivable. The City’s governmental funds Unassigned Fund Balance is $9,256,033. The General Fund portion of this, $10,100,896, 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 $37,896,430 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, $311,371, 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, 2016, the total fund balance was $11,638,707 and the spendable unassigned fund balance was 87% 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 59.5% of fund expenditures, compared to 46.3% the prior fiscal year. The General Fund balance increased $2,713,561 during the fiscal year, $1,907,940 of which was attributed to the Sales Tax Measure F-14 funding. 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, 2016, the fund balance was $5,711,968. 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, 2016, was $1,896,658, up $377,471 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 ($844,863) at June 30, 2016. As the economy continues to improve and development is reinvigorated over time, Impact Fee revenues should move this negative balance toward zero. Item Number: C-1 Date: 01/24/17 Attachment: 1 42 of 210 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2016 10 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) 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, 2016, the total fund balance was $17,004,836, which reflects $15.6 million in advances receivable from the Successor Agency. See Notes 7 and 14 to the financial statements for additional information on the Successor Agency and the bond issue. 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, 2016, these funds had an aggregate fund balance of $13,595,069. Of this total, $730 is non- spendable and $311,371 is assigned for specific uses. The Restricted Fund Balance is $13,282,968. 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 activities, increased in FY 2015-2016 by $2,686,070, primarily due to the changes in the Net Pension Liability as required to be reported by GASB 68. The Net Pension Liability for Governmental Activities at the end of the year was $18,546,152 and $553,340 for Business-type Activities. Compensated absences decreased by $20,078 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, 2016, net capital assets of the governmental activities totaled $127,024,659 and the net capital assets of the business-type activities totaled $15,606,829. Depreciation on capital assets is recognized in the Government-wide Financial Statements. The City has elected to depreciate its infrastructure assets. In order to depreciate the infrastructure assets, an estimated useful life for each type of asset was determined using engine ering standards, industry standards, as well as discussions with City staff regarding the City’s maintenance program for each asset type. This allowed the estimated useful life of each asset type to be tailored to include the unique attributes of the City of Atascadero. Item Number: C-1 Date: 01/24/17 Attachment: 1 43 of 210 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2016 11 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) The following table presents summary information on the City’s capital assets: 2015-2016 Governmental Activities 2015-2016 Business-Type Activities 2015-2016 Total 2014-2015 Governmental Activities 2014-2015 Business-Type Activities 2014-2015 Total Non-Depreciable: Land 40,855,264$ 442,044$ 41,297,308$ 40,855,264$ 442,044$ 41,297,308$ Construction in progress 3,359,872 65,702 3,425,574 2,383,958 203,027 2,586,985 Depreciable: Vehicles and equipment 9,458,163 717,903 10,176,066 9,192,403 717,903 9,910,306 Structures and improvements 50,114,352 28,985,980 79,100,332 49,895,354 28,816,003 78,711,357 Infrastructure 63,317,903 - 63,317,903 63,241,509 - 63,241,509 Accumulated Depreciation (40,080,895) (14,604,800) (54,685,695) (37,240,763) (13,800,474) (51,041,237) Net capital assets 127,024,659$ 15,606,829$ 142,631,488$ 128,327,725$ 16,378,503$ 144,706,228$ General Fund Budgetary Highlights A detailed budgetary comparison schedule for the fiscal year ended June 30, 2016, 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 2015-2016 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 2015-2016. General Fund Original Budget Final Budget Actual Variance Positive (Negative) Revenues 20,645,660$ 21,416,930$ 21,890,771$ 473,841$ Expenditures 21,454,670 22,406,340 19,566,900 2,839,440 Other Sources (Uses)389,690 389,690 389,690 - Fund Balance, beginning 8,925,146 8,925,146 8,925,146 - Fund Balance, ending 8,505,826$ 8,325,426$ 11,638,707$ 3,313,281$ Item Number: C-1 Date: 01/24/17 Attachment: 1 44 of 210 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2016 12 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) Both revenues and expenditure budgets were increased during the year, primarily reflecting the increases in activity in development, recreation programs, mutual aid, other grants, Council authorized increases for attorney services, Measure F-14 projects, and the Radio Simulcast project. 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 $3.3 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 is on a positive trajectory and the effects of the Council’s focus on Economic Development are now even more evident. While revenues are gaining momentum, the effect of economic development projects will not be fully realized for years into the future. The current improvements in revenues have allowed a limited amount of needed expansion of budgeted expenses but needs to continue to exceed the availability of resources. Economic factors and key issues and trends that affect the budget include: Sales Tax Measure F-14 This is a general purpose half-cent transaction tax that became effective April 1, 2015, and will be used primarily for repairing and maintaining neighborhood roads and other roadways. State impacts and other governmental regulation Impacts from the State such as the dissolution of redevelopment and other issues such as water restrictions, climate action plans, changes to State building and construction codes, new environmental regulations, and heavy reporting requirements continue to burden the City’s budget. Regulations Affecting Labor Costs Changes to state and federal regulations affect the cost of labor. Such changes include the Affordable Care Act, the California Healthy Workplace, Healthy Family Act of 2014, the California Minimum Wage increases, and Pension reform. The 2016-2017 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 Development • Connection between the City Council and Community • Common Sense Regulations and Reform • High Quality Public Safety Services • Atascadero Lake Park, Pavilion, Veterans Memorial, and Zoo • Environmental Stewardship • Staffing • Roads Program • Promotions To accomplish all of these goals, the 2016-2017 budget includes the planned use of $750,000 in reserves, in accordance with the Council’s financial strategy. CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Atascadero, Administrative Services Department, 6500 Palma Avenue, Atascadero, CA 93422. Item Number: C-1Date: 01/24/17Attachment: 1 45 of 210 BASIC FINANCIAL STATEMENTS Item Number: C-1 Date: 01/24/17 Attachment: 1 46 of 210 CITY OF ATASCADERO STATEMENT OF NET POSITION June 30, 2016 Governmental Activities Business-Type Activities Total ASSETS Cash and investments 29,085,225$ 10,576,108$ 39,661,333$ Restricted cash and investments: Cash with fiscal agents 1,419,834 - 1,419,834 Certificates of deposit 133,723 - 133,723 Receivables: Federal distributions due 2,467,061 170,119 2,637,180 Due from State of California 2,433,520 1,810 2,435,330 Due from County of San Luis Obispo 239,770 35,521 275,291 Accrued interest 52,038 18,108 70,146 Accrued interest receivable- 2010 bonds 185,101 - 185,101 Other receivables 924,811 57,884 982,695 Internal balances 217,833 (217,833) - Deposits, prepaid items and inventory 33,367 1,870 35,237 Notes receivable 5,304,378 - 5,304,378 Advance receivable- Successor Agency 16,960,175 - 16,960,175 Capital assets: Non-depreciable: Land 40,855,264 442,044 41,297,308 Construction in progress 3,359,872 65,702 3,425,574 Depreciable: Vehicles and equipment 9,458,163 717,903 10,176,066 Structures and improvements 50,114,352 28,985,980 79,100,332 Infrastructure 63,317,903 - 63,317,903 Accumulated depreciation (40,080,895) (14,604,800) (54,685,695) Total assets 186,481,495 26,250,416 212,731,911 DEFERRED OUTFLOWS Deferred outflows related to pensions 4,173,383 124,516 4,297,899 Total deferred outflows 4,173,383 124,516 4,297,899 The notes to the basic financial statements are an integral part of this statement. 13 Item Number: C-1 Date: 01/24/17 Attachment: 1 47 of 210 CITY OF ATASCADERO STATEMENT OF NET POSITION (continued) June 30, 2016 Governmental Activities Business-Type Activities Total LIABILITIES Accounts payable 1,319,114$ 233,356$ 1,552,470$ Accrued salaries and benefits 379,327 12,800 392,127 Accrued interest payable 185,101 - 185,101 Other payables 35,713 26,876 62,589 Deposits payable 82,884 - 82,884 Unearned revenue 1,611,339 36,630 1,647,969 Noncurrent liabilities: Due within one year 227,982 - 227,982 Due in more than one year 35,343,216 577,310 35,920,526 Total liabilities 39,184,676 886,972 40,071,648 DEFERRED INFLOWS Deferred inflows related to pensions 2,106,757 62,857 2,169,614 Total deferred inflows 2,106,757 62,857 2,169,614 NET POSITION Net investment in capital assets 113,511,857 15,606,829 129,118,686 Restricted for: Restricted for parks and recreation 3,681,266 - 3,681,266 Restricted for streets, roads and drainage 7,045,841 - 7,045,841 Restricted for public safety 1,321,872 - 1,321,872 Restricted for redevelopment & housing 8,645,076 - 8,645,076 Restricted for debt service 17,180,112 - 17,180,112 Unrestricted (2,022,579) 9,818,274 7,795,695 Total net position 149,363,445$ 25,425,103$ 174,788,548$ The notes to the basic financial statements are an integral part of this statement. 14 Item Number: C-1 Date: 01/24/17 Attachment: 1 48 of 210 CITY OF ATASCADERO STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2016 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 2,722,773$ 272,881$ 58,595$ 100,631$ (2,290,666)$ -$ (2,290,666)$ Public safety 10,160,806 1,039,352 235,071 612,455 (8,273,928) - (8,273,928) Community development 1,970,389 1,022,482 41,330 578,715 (327,862) - (327,862) 2,368,234 833,504 63,064 160,596 (1,311,070) - (1,311,070) Parks & open space 759,621 44,732 1,912 702,709 (10,268) - (10,268) Public works 3,293,532 118,257 1,334,193 772,547 (1,068,535) - (1,068,535) Interest on long-term debt 749,604 - - - (749,604) - (749,604) Total governmental activities 22,024,959 3,331,208 1,734,165 2,927,653 (14,031,933) - (14,031,933) Business-type activities: Sewer 2,237,196 2,104,580 - - - (132,616) (132,616) Transit 444,181 55,914 329,378 - - (58,889) (58,889) Total business-type activities 2,681,377 2,160,494 329,378 - - (191,505) (191,505) Total government 24,706,336$ 5,491,702$ 2,063,543$ 2,927,653$ (14,031,933) (191,505) (14,223,438) General revenues Taxes: Secured and unsecured property taxes 8,995,183 - 8,995,183 Sales tax and payments in lieu of sales tax 5,907,573 - 5,907,573 Transient lodging tax 1,238,431 - 1,238,431 Franchise taxes 1,047,678 - 1,047,678 Business license tax 169,119 - 169,119 Property transfer tax 144,725 - 144,725 Other taxes 286,275 - 286,275 Motor vehicle in lieu 11,769 - 11,769 Investment income 487,298 179,009 666,307 Interest from Successor Agency 766,816 - 766,816 Total general revenues 19,054,867 179,009 19,233,876 Change in net position 5,022,934 (12,496) 5,010,438 Net position at beginning of fiscal year 144,340,511 25,437,599 169,778,110 Net position at end of fiscal year 149,363,445$ 25,425,103$ 174,788,548$ Net (Expense) Revenue and Changes in Net Position Community, recreation & zoo services The notes to the basic financial statements are an integral part of this statement. 15 Item Number: C-1 Date: 01/24/17 Attachment: 1 49 of 210 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET June 30, 2016 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 8,564,216$ 526,648$ 2,814,691$ -$ 2$ 12,666,318$ 24,571,875$ Restricted cash and investments: - - - - 1,419,834 - 1,419,834 Certificates of deposit 133,723 - - - - - 133,723 Receivables: Federal distributions due 153,864 - - - - 402,298 556,162 Due from State of California 1,693,350 - - - - 103,169 1,796,519 107,790 - - - - 131,980 239,770 Accrued interest 16,357 942 4,977 - - 21,797 44,073 Other receivables 856,005 - - - - 68,806 924,811 Due from other funds 627,149 - - - - 844,863 1,472,012 Deposits, prepaid items, and inventory 28,913 - - - - 730 29,643 Notes receivable - 5,184,378 - - - 120,000 5,304,378 Advances receivable- Successor Agency 1,375,175 - - - 15,585,000 - 16,960,175 Total assets 13,556,542$ 5,711,968$ 2,819,668$ -$ 17,004,836$ 14,359,961$ 53,452,975$ Other NonMajor Governmental Funds Cash and investments with fiscal agent Due from County of San Luis Obispo The notes to the basic financial statements are an integral part of this statement. 16 Item Number: C-1 Date: 01/24/17 Attachment: 1 50 of 210 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET (continued) June 30, 2016 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 881,110$ -$ 13,277$ -$ -$ 201,542$ 1,095,929$ Accrued salaries and benefits 360,770 - - - - 9,786 370,556 Due to other funds - - - 844,863 - 409,316 1,254,179 Unearned revenue 557,358 - 909,733 - - 144,248 1,611,339 Deposits 82,884 - - - - - 82,884 Other payables 35,713 - - - - - 35,713 Total liabilities 1,917,835 - 923,010 844,863 - 764,892 4,450,600 Fund Balances: Nonspendable 1,537,811 - - - - 730 1,538,541 Restricted - 5,711,968 1,896,658 - 17,004,836 13,282,968 37,896,430 Assigned for road projects - - - - - 311,371 311,371 Unassigned 10,100,896 - - (844,863) - - 9,256,033 Total fund balances 11,638,707 5,711,968 1,896,658 (844,863) 17,004,836 13,595,069 49,002,375 Total liabilities and fund balances 13,556,542$ 5,711,968$ 2,819,668$ -$ 17,004,836$ 14,359,961$ 53,452,975$ Other NonMajor Governmental Funds The notes to the basic financial statements are an integral part of this statement. 17 Item Number: C-1 Date: 01/24/17 Attachment: 1 51 of 210 CITY OF ATASCADERO RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET TO THE STATEMENT OF NET POSITION Total fund balances - governmental funds 49,002,375$ 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 107,208,836$ Accumulated depreciation (28,229,704) Net 78,979,132 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.(185,101) In governmental funds, the receivable from the Successor Agency related to interest on the 2010 long-term debt is 185,101 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 15,585,000 Workers' Compensation estimated claims liability in excess of deposits 75,111 Compensated absences payable 1,083,537 PERS pension liability 17,862,733 Other Post Employment Benefits 152,794 (34,759,175) 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 4,019,595 Deferred inflows (2,029,123) 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.(72,376) June 30, 2016 not recognized until the period in which is paid. In the government-wide statement of activities, it is recognized in the period that it is incurred. The notes to the basic financial statements are an integral part of this statement. 18 Item Number: C-1 Date: 01/24/17 Attachment: 1 52 of 210 CITY OF ATASCADERO RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET TO THE STATEMENT OF NET POSITION (continued) Internal service funds are used by management to charge the costs of various City activities to individual governmental and enterprise funds. The unrestricted net position of the internal service funds are included in the Governmental Activities in the Statement of Net Position.54,223,017$ Total net position, governmental activities 149,363,445$ June 30, 2016 The notes to the basic financial statements are an integral part of this statement. 19 Item Number: C-1 Date: 01/24/17 Attachment: 1 53 of 210 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2016 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 8,315,801$ -$ -$ -$ -$ 920,460$ 9,236,261$ Taxes based on sales and use 5,907,573 - - - - - 5,907,573 Franchise tax 1,047,678 - - - - - 1,047,678 Other taxes 1,552,275 - - - - - 1,552,275 Licenses and permits 518,013 553,882 482,262 15,461 - 990,451 2,560,069 Intergovernmental revenues: 11,769 - - - - - 11,769 Grants 103,203 - - - - 528,099 631,302 Other governmental revenues 126,224 - - - - 1,340,585 1,466,809 Charges for services: Public safety 947,282 - - - - - 947,282 Development 596,370 - - - - - 596,370 Recreation, parks, pavilion and zoo 866,488 - - - - - 866,488 Other services 47,591 - - - - - 47,591 Fines and forfeitures 92,007 - - - - - 92,007 Use of money and property 136,472 9,358 48,351 - 768,672 227,779 1,190,632 Other revenues 1,622,025 - - - - 385 1,622,410 Total revenues 21,890,771 563,240 530,613 15,461 768,672 4,007,759 27,776,516 Motor vehicle in lieu The notes to the basic financial statements are an integral part of this statement. 20 Item Number: C-1 Date: 01/24/17 Attachment: 1 54 of 210 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2016 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 2,842,257$ -$ -$ -$ -$ 6,607$ 2,848,864$ Public safety 10,541,688 - - - - 96,987 10,638,675 Community development 1,619,342 45,960 - - 4,525 206,020 1,875,847 2,046,660 - - - - 8,000 2,054,660 Parks and open space 587,632 - - - - 44,555 632,187 Public works 997,586 - - - - 1,197,179 2,194,765 Capital outlay 931,735 - 153,142 - - 470,664 1,555,541 Debt service: Principal - - - - 215,000 - 215,000 Interest - - - - 754,450 - 754,450 Total expenditures 19,566,900 45,960 153,142 - 973,975 2,030,012 22,769,989 Excess of revenues over (under) expenditures 2,323,871 517,280 377,471 15,461 (205,303) 1,977,747 5,006,527 Other Financing Sources (Uses): Transfers in 391,090 - - - - 174,019 565,109 Transfers out (1,400) - - - - (563,709) (565,109) Total other financing sources and uses 389,690 - - - - (389,690) - Net change in fund balances 2,713,561 517,280 377,471 15,461 (205,303) 1,588,057 5,006,527 Fund balances - June 30, 2015 8,925,146 5,194,688 1,519,187 (860,324) 17,210,139 12,007,012 43,995,848 Fund balances - June 30, 2016 11,638,707$ 5,711,968$ 1,896,658$ (844,863)$ 17,004,836$ 13,595,069$ 49,002,375$ Community, recreation, and zoo services The notes to the basic financial statements are an integral part of this statement. 21 Item Number: C-1 Date: 01/24/17 Attachment: 1 55 of 210 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, 2016 Total net change in fund balance - governmental funds 5,006,527$ Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which additions to capital outlay of $1,555,541 is greater than depreciation expense $(1,416,723) in the period.138,818 The donation or contribution of capital assets is not recorded in the governmental financial statements. In the statement of activities, however, the donation is recorded as an appropriate capital grant.18,000 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.(117,755) 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.215,000 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.2,990 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:(1,856) 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. 1,856 In the statement of activities, compensated absences are measured by the amounts earned during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts paid). This fiscal year, leave amounts used exceeded the amounts earned by:27,160 In governmental funds, pension costs are recognized when employer contributions are made. In the Statement of Activities, pension costs are recognized on the accrual basis. This year, the difference between accrual-basis pension costs and and actual employer contributions was:792,089 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. (8,812) The notes to the basic financial statements are an integral part of this statement. 22 Item Number: C-1 Date: 01/24/17 Attachment: 1 56 of 210 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, 2016 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.(9,775)$ 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 ($297,940) less the contributions of cash and capital assets from other governmental funds ($743,368).(1,041,308) Changes in net position - governmental activities 5,022,934$ The notes to the basic financial statements are an integral part of this statement. 23 Item Number: C-1 Date: 01/24/17 Attachment: 1 57 of 210 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30, 2016 Wastewater Fund Transit Fund Totals ASSETS Current Assets: Cash and investments 10,576,108$ -$ 10,576,108$ 4,513,350$ Receivables: Federal distributions due 5,429 164,690 170,119 1,910,899 Due from State of California 1,810 - 1,810 637,001 Due from County of San Luis Obispo 35,476 45 35,521 - Accrued interest 18,501 (393) 18,108 7,965 Other receivables 56,574 1,310 57,884 - Prepaid expenses 1,870 - 1,870 3,724 Total current assets 10,695,768 165,652 10,861,420 7,072,939 Capital Assets: Non-depreciable: Land 442,044 - 442,044 - Construction in progress 65,702 - 65,702 1,380,566 Depreciable: Vehicles and equipment 363,198 354,705 717,903 9,371,411 Structures and improvements 27,565,705 1,420,275 28,985,980 49,144,741 Accumulated depreciation (14,048,843) (555,957) (14,604,800) (11,851,191) Net capital assets 14,387,806 1,219,023 15,606,829 48,045,527 Total assets 25,083,574 1,384,675 26,468,249 55,118,466 DEFERRED OUTFLOWS Deferred outflows related to pension 116,466 8,050 124,516 153,788 Total Deferred Outflows 116,466 8,050 124,516 153,788 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 24 Item Number: C-1 Date: 01/24/17 Attachment: 1 58 of 210 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION (continued) June 30, 2016 Wastewater Fund Transit Fund Totals LIABILITIES Current Liabilities: Accounts payable 215,985$ 17,371$ 233,356$ 223,185$ Accrued salaries and benefits 12,242 558 12,800 8,771 Unearned revenue - 36,630 36,630 - Due to other funds - 217,833 217,833 - Other payables 24,950 1,926 26,876 - Noncurrent Liabilities: Noncurrent liabilities 541,536 35,774 577,310 739,647 Total liabilities 794,713 310,092 1,104,805 971,603 DEFERRED INFLOWS Deferred inflows related to pension 58,793 4,064 62,857 77,634 Total Deferred Inflows 58,793 4,064 62,857 77,634 NET POSITION Net investment in capital assets 14,387,806 1,219,023 15,606,829 48,045,527 Unrestricted 9,958,728 (140,454) 9,818,274 6,177,490 Total net position 24,346,534$ 1,078,569$ 25,425,103$ 54,223,017$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 25 Item Number: C-1 Date: 01/24/17 Attachment: 1 59 of 210 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2016 Wastewater Fund Transit Fund Totals Operating Revenues: Service fees 1,908,340$ 55,914$ 1,964,254$ 1,350,100$ Installation, extension and connection fees 196,240 - 196,240 - Total operating revenues 2,104,580 55,914 2,160,494 1,350,100 Operating Expenses: Salaries and benefits 315,891 22,020 337,911 536,069 Office expense 3,813 1,066 4,879 881 Computer maintenance and replacement 18,894 10,310 29,204 2,490 Insurance 15,806 6,534 22,340 19,259 Occupancy and rental costs 8,751 1,620 10,371 30,790 Utilities 236,430 - 236,430 68,903 Communications 6,874 60 6,934 8,338 Operating supplies 79,764 462 80,226 39,054 Vehicle and equipment operating costs 81,755 53,220 134,975 6,150 Contract services 147,348 136,041 283,389 106,430 Professional development 8,858 - 8,858 16,571 Recruitment 796 1,169 1,965 1,138 Franchise fees 37,121 - 37,121 - Administrative charges 266,370 134,990 401,360 47,330 Special projects: Chairs 1,289 - 1,289 - Refrigerator 1,073 - 1,073 - Manhole Rehabilitation Projects 54,653 - 54,653 - Sewer Line Trench Settlement Repair Project 10,540 - 10,540 - Wastewater Fee Study 31,020 - 31,020 - Sewer System Management Plan Audit 9,199 - 9,199 - Inflow and Infiltration Study 17,227 - 17,227 - Re-rating Study 26,849 - 26,849 - Exterior Paint Project- Police Station - - - 10,123 Parking Lot Repairs- Fire Station #1 - - - 3,500 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 26 Item Number: C-1 Date: 01/24/17 Attachment: 1 60 of 210 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2016 Wastewater Fund Transit Fund Totals Operating Expenses (continued): Depreciation 758,700$ 76,689$ 835,389$ 1,565,920$ Total operating expenses 2,139,021 444,181 2,583,202 2,462,946 Operating income (loss)(34,441) (388,267)(422,708) (1,112,846) Non-Operating Revenues (Expenses): Transportation Development Act Funds - Operations - 164,689 164,689 - Section 5307 Revenues - Operations - 164,689 164,689 - Interest income 181,256 (2,247) 179,009 77,397 Gain / (loss) on sale of capital assets (80,175) - (80,175) (5,859) Total non-operating revenues 101,081 327,131 428,212 71,538 Change in net position prior to capital contributions 66,640 (61,136) 5,504 (1,041,308) Capital Contributions: Cash contributions to other funds (18,000) - (18,000) - Cash contributions from other funds - - - 689,184 Capital contributions from other funds - - - 54,184 Total capital contributions (18,000) - (18,000) 743,368 Change in net position 48,640 (61,136) (12,496) (297,940) Total net position, June 30, 2015 24,297,894 1,139,705 25,437,599 54,520,957 Total net position, June 30, 2016 24,346,534$ 1,078,569$ 25,425,103$ 54,223,017$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 27 Item Number: C-1 Date: 01/24/17 Attachment: 1 61 of 210 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2016 Wastewater Fund Transit Fund Totals Cash Flows From Operating Activities: Receipts from customers 2,102,098$ 56,079$ 2,158,177$ -$ Internal activity - payments from other funds 127,883 - 127,883 1,350,100 Payments to suppliers of goods and services (944,980) (341,769) (1,286,749) (320,711) Payments for employee services (553,495) (41,167) (594,662) (600,424) Net cash provided (used) by operating activities 731,506 (326,857) 404,649 428,965 - 296,661 296,661 - - (19,478) (19,478) - Net cash provided (used) by non-capital related financing activities - 277,183 277,183 - Acquisition of capital assets (143,891) - (143,891) (926,774) Cash contributions for capital purchases (18,000) - (18,000) 689,184 Capital grant proceeds - 51,528 51,528 - Proceeds from sale of capital assets - - - 7,940 Net cash provided (used) by capital and related financing activities (161,891) 51,528 (110,363) (229,650) Internal Service Funds Enterprise Funds Receipts from intergovernmental agencies Cash Flows From Non-Capital Financing Activities: Cash Flows From Capital and Related Financing Activities: Loans / repayments to other funds The notes to the basic financial statements are an integral part of this statement. 28 Item Number: C-1 Date: 01/24/17 Attachment: 1 62 of 210 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2016 Wastewater Fund Transit Fund Totals Cash Flows From Investing Activities: Interest income 176,134$ (1,854)$ 174,280$ 74,994$ Net cash provided (used) by investing activities 176,134 (1,854) 174,280 74,994 Net increase (decrease) in cash and cash equivalents 745,749 - 745,749 274,309 Cash and cash equivalents - June 30, 2015 9,830,359 - 9,830,359 4,239,041 Cash and cash equivalents - June 30, 2016 10,576,108$ -$ 10,576,108$ 4,513,350$ Operating income (loss)(34,441)$ (388,267)$ (422,708)$ (1,112,846)$ Depreciation expense 758,700 76,689 835,389 1,565,920 Change in assets and liabilities: Receivables, net (2,482) 165 (2,317) 281 Prepaid expenses - - - 3,116 Due from other funds 127,883 - 127,883 - Accounts payable 113,965 3,703 117,668 36,849 Accrued salaries and benefits (15,710) (1,346) (17,056) (19,496) Other payables 5,485 - 5,485 - Deferred outflows (49,162) (3,167) (52,329) (89,053) Deferred inflows (105,816) (7,878) (113,694) (80,690) Net pension liability (68,675) (6,756) (75,431) 119,561 Compensated absences 1,759 - 1,759 5,323 Net cash provided (used) by operating activities 731,506$ (326,857)$ 404,649$ 428,965$ Internal Service Funds Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 29 Item Number: C-1 Date: 01/24/17 Attachment: 1 63 of 210 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF FIDUCIARY NET POSITION June 30, 2016 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals ASSETS Cash and investments $ 2,315,522 $ - 2,315,522$ Restricted cash and investments: 879,532 - 879,532 Receivables: Accrued interest 2,878 - 2,878 Other receivables 5,350 - 5,350 Notes receivable - 200,000 200,000 Due from Successor Agency - 1,335,322 1,335,322 Capital assets: Non-depreciable: Land 413,791 - 413,791 Depreciable: Structures and improvements 2,369,216 - 2,369,216 Accumulated depreciation (230,162) - (230,162) Total assets 5,756,127 1,535,322 7,291,449 LIABILITIES Accounts payable 1,937 - 1,937 Interest payable 350,000 - 350,000 Due to Successor Agency Housing Fund 1,335,322 - 1,335,322 Loans payable to City of Atascadero 1,375,175 - 1,375,175 Premium on Bonds Payable 30,816 - 30,816 2004 Bonds Payable 10,350,000 - 10,350,000 15,585,000 - 15,585,000 Total liabilities 29,028,250 - 29,028,250 NET POSITION Held in trust for taxing agencies (23,272,123)$ 1,535,322$ (21,736,801)$ Successor Agency to the Atascadero Community Redevelopment Agency Cash with fiscal agent 2010 Bond Reimbursement Agreement Payable to City of Atascadero The notes to the basic financial statements are an integral part of this statement. 30 Item Number: C-1 Date: 01/24/17 Attachment: 1 64 of 210 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Fiscal Year Ended June 30, 2016 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals Additions Contributions: RPTTF Distributions 2,081,359$ -$ 2,081,359$ Investment earnings: Interest 39,902 - 39,902 Total additions 2,121,261 - 2,121,261 Deductions Payment on outstanding services contracts 2,520 - 2,520 Asset maintenance costs 36,182 - 36,182 Administrative costs 250,000 - 250,000 2004 Bond Interest Expense 498,021 - 498,021 2010 Bond Reimbursement Interest Expense 757,108 - 757,108 Depreciation expense 52,112 - 52,112 Total deductions 1,595,943 - 1,595,943 Change in net position 525,318 - 525,318 Net position - June 30, 2015 (23,797,441) 1,535,322 (22,262,119) Net position - June 30, 2016 (23,272,123)$ 1,535,322$ (21,736,801)$ The notes to the basic financial statements are an integral part of this statement. 31 Item Number: C-1 Date: 01/24/17 Attachment: 1 65 of 210 NOTES TO THE BASIC FINANCIAL STATEMENTS Item Number: C-1 Date: 01/24/17 Attachment: 1 66 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 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 and GASB Statement No. 61. 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 St andards 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 a nd 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-1 Date: 01/24/17 Attachment: 1 67 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 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 c olumn, regardless of their fund-type. Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percen t of their fund-type total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. The City reported the following major governmental funds in the accompanying financial statements: General Fund This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City. In Lieu Low/Moderate Income Housing Fund This fund accounts for fees that are paid by developers in lieu of building inclusionary (affordable) housing. These fees are expended on programs that provide and/or promote affordable housing within the City. Circulation System Fees Fund This fund accounts for fees that are paid by developers to fund the creation of more lane miles or more efficient lane miles with w hich to accommodate the additional trips created by new development. These fees are expended for the construction of new/increased/improved roadway and bridge facilities. Fire Aerial Vehicle Impact Fees Fund This fund accounts for impact fees imposed on commercial and multi-family residential developments for the purpose of contributing toward the purchase of the Aerial Fire Truck (Ladder Truck). The City purchased this truck in fiscal year 2007-2008 using future revenues. 2010 Bond Debt Service Fund This fund accounts for the debt service payments for the Lease Revenue Bonds that were issued on September 1, 2010. The City reported the following major proprietary funds: Wastewater Fund This fund accounts for the activities associated with the City’s sewer plant operation a nd maintenance. Transit Fund This fund accounts for the activities associated with the operation and maintenance of transportation services, such as and including the Dial-a-Ride Transit System. Item Number: C-1 Date: 01/24/17 Attachment: 1 68 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 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 stat e 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. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989 generally are followed in both govern ment-wide, proprietary fund financial statements, and the private purpose trust fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments have the option of following subsequent private-sector guidance for their business-type activities and proprietary funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of acc ounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after fiscal year end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent that they have matured. Capital asset acquisitions are reported as expenditures in governm ental funds. Proceeds of long-term debt and acquisitions under capital leases are reported as other financing sources. Proprietary funds distinguish operating revenues from nonoperating revenues. Operating revenues generally result from providing services in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Wastewater Fund and the Trans it Fund are charges to customers for services. The Wastewater Fund also recognizes as operating revenue the installation, extension and connections fees intended to recover the cost of connecting new customers to the system. All revenues not meeting these definitions are reported as non-operating revenues, including non- exchange transactions such as local transportation funds and federal Section 5307 revenues. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange , include property taxes, grants, entitlements, and donations. On an accrual basis, revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Item Number: C-1 Date: 01/24/17 Attachment: 1 69 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 35 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Basis of Accounting (continued) Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net assets may be available to finance program expenditures/expenses. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. G. Compensated Absences In compliance with Governmental Accounting Standards Board Statement No. 16, the City has established a liability for accrued vacation, other leave and certain sick leave in relevant funds. For governmental funds, the current liability appears in the respective funds. All vacation, sick and other leave paid is accrued when incurred in the government-wide and proprietary funds financial statements. This liability is set up for the current employees at the current rates of pay. If vacation and certain other leave are not used by the employee during the term of employment, compensation is payable to the employee at the time of retirement or termination. Such compensation is calculated at the employee’s prevailing rate at the time of retirement or termination. Each fiscal year, an adjustment to the liability is made based on pay rate changes and adjustments for the current portion. The General Fund is primarily responsible for the repayment of the governmental portion of compensated absences. H. Property Taxes California Constitution Article XIII A limits the combined property tax rate to one percent of a property’s assessed valuatio n. Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property’s fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership or new construction occurs. The state legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions. Property tax revenues are recognized in the fiscal year for which taxes have been levied, and collected within sixty days of fiscal year end. Property taxes are billed and collected as follows: Secured Unsecured Valuation/Lien Date(s) January 1 January 1 Levy Date(s) July 1 July 1 Due Date(s) November 1 (50%) August 1 February 1 (50%) Delinquency Date(s) December 10 (Nov.) August 31 April 10 (Feb.) The City adopted an alternative method of property tax distribution (the “Teeter Plan”). Under this method, the City receives 100% of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives payments as a series of advances made by the County throughout the fiscal year. The secured property tax levy is recognized as revenue upon receipt including the final payment, which generally is received within 60 days after the fiscal year end. Item Number: C-1 Date: 01/24/17 Attachment: 1 70 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 36 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I. Capital Assets Additions and Retirements Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contribu ted capital assets are valued at their estimated fair value on the date contributed. The City’s policy is to capitalize all capital assets with costs exceeding a minimum of $2,500, and with useful lives exceeding one year. In the Technology Fund, the City uses a lower cost threshold to capitalize assets due to the nature of the assets . With the implementation of GASB Statement No. 34, the City has recorded all its public domain (infrastructure) capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems. The City’s collection of zoo animals is not capitalized. The collection of animals is held for public education purposes, is well cared for, and there is a City commitment to continue the collection. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each fiscal year represents that fiscal year’s pro rata share of the cost of capital assets. GASB Statem ent 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 a ffect 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-1 Date: 01/24/17 Attachment: 1 71 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 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 amoun t of $11,541,910 was netted against the liability account of $11,616,730 in fiscal year 2016. The net balance in the performance bond deposits liability account at June 30, 2016, was $74,820 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 con tractual constraints Restricted- includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as c reditors 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 Counci l 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 an d negative fund balances in other governmental funds Non-Spendable Fund Balance The non-spendable fund balance of $1,538,541 is comprised of amounts reported in non-spendable form and/or not in cash form such as prepaid items, long-term notes receivable and long-term advances receivable. Restricted Fund Balance The restricted fund balance of $37,896,430 is comprised of $5,711,968 for affordable housing, $17,004,836 restricted for debt service, and $15,179,626 restricted for other Capital Project Funds and Special Revenue Funds. Item Number: C-1 Date: 01/24/17 Attachment: 1 72 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 38 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Fund Balance (continued) Assigned Fund Balance The assigned fund balance of $311,371 is held in the Capital Projects Fund for major 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. Use of Fund Balance Order The City budgets and expends funds for each project or expense based on specific identified funding sources that are available now and in the future. This means that, at times, the City may use unrestricted funds first for a particular project, leaving the eligible restricted funds available for a spe cific future project; however, it is the City’s general policy to use restricted amounts first when both restricted and unrestricted amounts are available. Similarly, the City would typically first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expen ditures 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 criteria for fiscal year 2015-2016. Major Special Revenue and Capital Projects Funds The purpose for each major fund may be found in Note 1(C); however, each major special revenue and capital projects fund and its revenue source is listed below: Major Special Revenue and Debt Service Funds Revenue Source In Lieu Low/Moderate Income Housing Fund New Developments Circulation System Fees Fund Development Impact Fees Fire Aerial Vehicle Impact Fees Fund Development Impact Fees 2010 Bond Debt Service Fund Successor Agency Tax Increment Item Number: C-1 Date: 01/24/17 Attachment: 1 73 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 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 162,636$ -$ -$ -$ -$ 730$ 163,366$ Advances Receivable 1,375,175 - - - - - 1,375,175 Restricted Public Safety - - - - - 1,321,872 1,321,872 Streets, Roads, and Drainage - - 1,896,658 - - 5,148,453 7,045,111 Parks, Open Space & Recreation - - - - - 3,681,266 3,681,266 - - - - - 2,956,101 2,956,101 Affordable Housing - 5,711,968 - - - - 5,711,968 Debt Service - - - - 17,004,836 175,276 17,180,112 Assigned Streets, Roads, and Drainage - - - - - 311,371 311,371 Unassigned 10,100,896 - - (844,863) - - 9,256,033 Total Fund Balances 11,638,707$ 5,711,968$ 1,896,658$ (844,863)$ 17,004,836$ 13,595,069$ 49,002,375$ Other NonMajor Governmental Funds Disclosure of Fund Balances Reported on Balance Sheet June 30, 2016 Community Development and Blight Elimination Deposits, prepaid items, and inventory Item Number: C-1 Date: 01/24/17 Attachment: 1 74 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 40 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) P. New Accounting Pronouncements Governmental Accounting Standards Board Statement No. 72 For the fiscal year ended June 30, 2016, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 72, “Fair Value Measurement and Application.” This Statement is effective for periods beginning after June 15, 2015. This Statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement provides g uidance for applying fair value to certain investments and disclosures related to all fair value measurements . Implementation of GASB Statement No. 72 and the impact on the City’s financial statements are explained in Note 3 – Cash and Investments. Governmental Accounting Standards Board Statement No. 76 For the fiscal year ended June 30, 2016, the City implemented GASB Statement No. 76, “The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments.” This Statement is effective for periods beginning after June 15, 2015. GASB Statement No. 76 establishes the hierarchy of GAAP for state and local governments. Implementation of this statement did not have a significant impact on the City for the year ended June 30, 2016. Governmental Accounting Standards Board Statement No. 79 For the fiscal year ended June 30, 2016, the City implemented GASB Statement No. 79, “Certain External Investment Pools and P ool Participants.” GASB Statement No. 79 established accounting and financial reporting standards for qualifying external investment pools that elect to measure all their investments at amortized cost. The new standard is effective for periods beginning after June 15, 2015, expect for certain p rovisions that will be effective for reporting periods beginning after December 15, 2015. Implementation of this statement did not have a significant impact on the City for the year ended June 30, 2016. Governmental Accounting Standards Board Statement No. 82 For the fiscal year ended June 30, 2016, the City implemented GASB Statement No. 82, “Pension Issues-an amendment of GASB Statement No. 67, No. 68, and No. 73.” GASB Statement No. 82 address issues regarding (1) the presentation of payroll -related measures in required supplementary information, (2) the selection of assumptions and the restatement of deviations from the guidance in the Actuarial Standard o f Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. As Statement No. 82 changes the classification of these payments, commonly referred to as Emplo yer-Paid Member Contributions, the City reported these accordingly. While the applicable requirements of this Statement are effective for reporting periods beginning after June 15, 2016, the City has elected early implementation for the year ended June 30, 2016. 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 inflo ws of resources. Item Number: C-1 Date: 01/24/17 Attachment: 1 75 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 41 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Q. Deferred Outflows and Inflows of Resources (continued) In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resour ces. 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 8 for a detailed listing of the deferred outflows of resources the City has recognized. In addition to liabilities, the Statement of Net Position will s ometimes 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 one item which qualifies for reporting in this category; refer to Note 8 for a detailed list of the deferred inflows of revenues the City recognized. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pensi on expense, information about the fiduciary net position of the City of Atascadero ’s California Employees’ Retirement System (CalPERS) (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they ar e 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 Deficit fund balances in the following funds exist due to large purchase s incurred prior to the receipt of the long-term reimbursing revenues: Deficit Fund Balance Major Governmental Fund Fire Aerial Vehicle Impact Fees Fund (844,863)$ Item Number: C-1 Date: 01/24/17 Attachment: 1 76 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 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, 2016, consisted of the following: Pooled Cash and Investments: Cash in bank and on hand 734,626$ Investments 27,561,021 Broker Money Market Account 41,414 Local Agency Investment Fund (State Pool)13,773,517 Total Pooled Cash and Investments 42,110,578 Funds with Fiscal Agents: United States Treasury Money Fund 2,299,366 Total Funds with Fiscal Agents 2,299,366 Total Cash and Investments 44,409,944$ 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 29,085,225$ 10,576,108$ 2,315,522$ 41,976,855$ Cash and investments held by fiscal agents 1,419,834 - 879,532 2,299,366 Restricted certificates of deposit 133,723 - - 133,723 Total Cash and Investments 30,638,782$ 10,576,108$ 3,195,054$ 44,409,944$ Item Number: C-1 Date: 01/24/17 Attachment: 1 77 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 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 Californi a financial institutions to secure the City’s deposits by pledging government securities as collateral. The fair value of the pled ged 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 t o 150% of the City’s deposits. At fiscal year end, the City’s bank account balance was $1,411,512. The first $250,000 was insured by federal depository insurance, and the remainder was 110% collateralized. Certificates of Deposit totaling $11,555,282 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 stat ute. 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 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 Ci ty’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 (c alled “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 invest ment purchased at par will now reflect changes in its value at each succeeding fiscal year end, but these recognized gains or losses will net to zero if the investment is held to maturity. By following the requirements of GASB Statement No. 31, the City is reporting the amount of resources which would actually have been available if it had been required to liquidate all of its investments at any fiscal year end. Item Number: C-1 Date: 01/24/17 Attachment: 1 78 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 44 NOTE 3 – CASH AND INVESTMENTS (continued) E. Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurements and Application, provides the framew ork 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 f ollows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the organization has the abi lity to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following: 1. Quoted prices for similar assets or liabilities in active markets. 2. Quoted prices for identical or similar assets or liabilities in markets that are not active. 3. Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default 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, 2016, are as follows: June 30, 2016 Fair Value Quoted Prices in Active Markets for Identical Assets (Level1) Significant Other Observable Inputs (Level 2) Uncategorized (Level 3) U. S. Government Obligations 16,005,739$ -$ 16,005,739$ -$ Certificates of Deposit 11,555,282 - 11,555,282 - Broker Money Market Account 41,414 - 41,414 - United States Treasury Money Fund 2,299,366 - 2,299,366 - 29,901,801$ -$ 29,901,801$ -$ Investments measured at amortized cost LAIF 13,773,517 Total investments 43,675,318$ Fair values for investments are determined by using a matrix pricing technique. Matrix pricing is used to value securities ba sed on the security’s relationship to benchmark quoted prices. Uncategorized investments do not fall under the fair value hierarchy as there is no active market fo r the investments. Item Number: C-1 Date: 01/24/17 Attachment: 1 79 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 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 16,005,739$ 39% Certificates of Deposit 11,555,282 28% Broker Money Market Account 41,414 0% Local Agency Investment Fund (State Pool)13,773,517 33% Total Investments Managed by City 41,375,952$ 100% Investments Held by Fiscal Agents United States Treasury Money Fund 2,299,366$ 100% Total Investments Held by Fiscal Agents 2,299,366$ 100% Fair Value On Demand Within One Month One Month to One Year One to Five Years Six to Ten Years Investments U.S. Government Obligations 16,005,739$ -$ -$ 5,297,237$ 10,708,502$ -$ Certificates of Deposit 11,555,282 - - 1,229,207 10,192,352 133,723 Broker Money Market 41,414 - 41,414 - - - Local Agency Investment Fund (State Pool)13,773,517 13,773,517 - - - - Total Investments Managed by City 41,375,952$ 13,773,517$ 41,414$ 6,526,444$ 20,900,854$ 133,723$ Percentage of Portfolio 100%33%0%16%51%0% * $133,723 in certificates of deposit with a local bank, serving as collateral for the Local Road Improvement Loan Program, approved by Council June 14, 2005. Item Number: C-1 Date: 01/24/17 Attachment: 1 80 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 46 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments (continued) Interest Rate Risk. This is the risk that the market value of securities in the portfolio will fall, due to changes in general interest rates. In accordance with its Investment Policy, the City mitigates interest rate risk by:  Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoi ding the need to sell securities on the open market prior to maturity.  Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pool. Credit Risk. This is the risk of loss due to the failure of the security issuer or backer. The City mitigates credit risk by:  Limiting investments to the safest types of securities.  Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business.  Diversifying the investment portfolio so that potential losses on individual securities will be minimized. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by Nationally Recognized Statistical Rating Organizations (NRSROs). It is the City’s policy to limit its investments in these investment types to the top rating issued by NRSROs. The City does not hold any commercial paper or corporate bonds. U. S. Government Obligations held by the City are rated AAA, the top rating issued by NRSROs. The City’s investment in the State LAIF pool is unrated, as are the investments in Certificates of Deposit. Fair Value AAA Not Rated Investments U. S. Government Obligations 16,005,739$ 16,005,739$ -$ Certificates of Deposit 11,555,282 - 11,555,282 Local Agency Investment Fund (State Pool)13,773,517 - 13,773,517 Total Investments Managed by City 41,334,538$ 16,005,739$ 25,328,799$ Rating as of June 30, 2016 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 l imited by the City’s Investment Policy. Item Number: C-1 Date: 01/24/17 Attachment: 1 81 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 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 secur ities will be minimized. The City’s Investment Policy outlines the following criteria related to portfolio diversification:  No more than forty percent (40%) of the City’s portfolio shall be invested in U.S. government obligations, U.S. government agency obligations, and U.S. government instrumentality obligations, which have a liquid market with a readily determinable market value.  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 an d 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 ot her 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.  There is no limit as to the amount of the investment portfolio that may be deposited in certificates of deposit or passbook s avings 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 Secur ities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec 80a-l et seq.) shall not exceed twenty percent (20%) of the agency's surplus money that may be invested pursuant to the City’s Investment Policy. G. Funds with Fiscal Agents The City had $1,419,834 in cash and investments as of June 30, 2016, held by fiscal agents pledged for the payment or security of the 2010 Lease Revenue Bonds. There was an additional $879,532 held by fiscal agents for the 2004 Redevelopment Agency Tax Allocation Bonds in the Successor Agency to the Community Redevelopment Agency of Atascadero Private Purpose Trust Fund. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds, certificates, or leases, may be inve sted in accordance with the ordinance, resolutions, or indentures specifying the types of investments its fiscal agents may make. Item Number: C-1 Date: 01/24/17 Attachment: 1 82 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 48 NOTE 4 – ADVANCES RECEIVABLE – SUCCESSOR AGENCY Receivable Fund Payable Fund Amount General Fund Successor Agency General Fund 1,375,175$ 2010 Bond Debt Service Fund Successor Agency General Fund 15,585,000 Total 16,960,175$ Advances receivable of $1,375,175 consists of three separate loans made by the City General Fund to the former Redevelopment Agency. These funds are now liabilities of the Successor Agency. AB 1484 sets forth the criteria for repayment of these loans. S ee Note 14C – Successor Agency Trust for Assets of Former Redevelopment Agency, Loans Payable, for additional information. Advances receivable of $15,585,000 consists of a reimbursement agreement with the City for bond debt service. In September of 2010, the City issued bonds on behalf of the former Redevelopment Agency and entered into a reimbursement agreement at that time whereby the City advanced the former Agency the proceeds of the bond and the former Agency was required to make annual payments to the City in the amount of the debt service on the bonds. With the dissolution of redevelopment, this is now a debt of the Successor Agency and the Successor Agency will continue to make the required payment s. See Note 14D – Successor Agency Trust for Assets of Former Redevelopment Agency, Bond Reimbursement Agreement Payable, for additional information. This arrangement meets the criteria of ABX1 26, Section 34171(d)(G)(2):  Written agreement entered into o At the time of issuance, but no later than December 31, 2010, of indebtedness obligations; o Solely for the purpose of securing or repaying those indebtedness obligations  Section 34171(e) defines “indebtedness obligation”: bonds, notes, certificates of participation, or other evidence of indebtedness, issued or delivered by the redevelopment agency, or by a joint exercise of powers authority created by the redevelopment agency, to third -party investors or bondholders to finance or refinance redevelopment projects undertaken by the redevelopment agency in compliance with the Community Redevelopment Law. Item Number: C-1 Date: 01/24/17 Attachment: 1 83 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 49 NOTE 5 – CAPITAL ASSETS A. Capital Assets Additions and Retirements Capital assets activity in the Governmental Activities for the fiscal year ended June 30, 2016, was as follows: Balance June 30, 2015 Additions Deletions Transfers Between Assets Balance June 30, 2016 Governmental Activities Non-Depreciable Capital Assets Land 40,855,264$ -$ -$ -$ 40,855,264$ Construction in progress 2,383,958 1,563,066 (112,225) (474,927) 3,359,872 Total non-depreciable capital assets 43,239,222 1,563,066 (112,225) (474,927) 44,215,136 Depreciable Capital Assets Vehicles and equipment 9,192,403 222,919 (116,765) 159,606 9,458,163 Structures and improvements 49,895,354 5,483 (20,529) 234,044 50,114,352 Infrastructure 63,241,509 19,662 (24,545) 81,277 63,317,903 Total depreciable capital assets 122,329,266 248,064 (161,839) 474,927 122,890,418 Less Accumulated Depreciation (37,240,763) (2,982,640) 142,508 - (40,080,895) Net depreciable capital assets 85,088,503 (2,734,576) (19,331) 474,927 82,809,523 Net governmental capital assets 128,327,725$ (1,171,510)$ (131,556)$ -$ 127,024,659$ Item Number: C-1 Date: 01/24/17 Attachment: 1 84 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 50 NOTE 5 – 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, 2016, was as follows: Balance June 30, 2015 Additions Deletions Transfers Between Assets Balance June 30, 2016 Business-Type Activities Non-Depreciable Capital Assets Land 442,044$ -$ -$ -$ 442,044$ Construction in progress 203,027 122,797 - (260,122) 65,702 Total non-depreciable capital assets 645,071 122,797 - (260,122) 507,746 Depreciable Capital Assets Vehicles and equipment 717,903 - - - 717,903 Structures and improvements 28,816,003 21,093 (111,238) 260,122 28,985,980 Total depreciable capital assets 29,533,906 21,093 (111,238) 260,122 29,703,883 Less Accumulated Depreciation (13,800,474) (835,389) 31,063 - (14,604,800) Net depreciable capital assets 15,733,432 (814,296) (80,175) 260,122 15,099,083 Net business-type capital assets 16,378,503$ (691,499)$ (80,175)$ -$ 15,606,829$ Item Number: C-1 Date: 01/24/17 Attachment: 1 85 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 51 NOTE 5 – 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 327,746$ Public safety 392,152 Community development 240,521 Community, recreation & zoo services 358,142 Parks & open space 147,056 Public works 1,517,023 Total Depreciation Expense- Governmental Activities 2,982,640$ Sewer 758,700$ Transit 76,689 Total Depreciation Expense- Business-Type Activities 835,389$ Business-Type Activities: Item Number: C-1 Date: 01/24/17 Attachment: 1 86 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 52 NOTE 6 – 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, 2016, is as follows: Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Funds 409,316$ General Fund Transit Fund 217,833 Nonmajor Governmental Funds Fire Aerial Vehicle Impact Fees Fund 844,863 Total 1,472,012$ B. Interfund Transfers Interfund transfers were made as follows: Actual Description 391,090$ Transfer from the Community Facilities District Fund to the General Fund for fire, police and park services 1,400 Transfer from the General Fund to the De Anza Landscape & Lighting Fund for open space maintenance 172,619 Transfer from the Historic City Hall Rehabilitation Fund to the 2010 Bond Proceeds Master Agreement Fund for City Hall expenditures in accordance with the Master Agreement between the Successor Agency and the City 565,109$ Interfund Transfers June 30, 2016 Item Number: C-1 Date: 01/24/17 Attachment: 1 87 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 53 NOTE 7 – LONG-TERM DEBT 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, 2016, total $1,139,765 for governmental activities and $23,970 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 will mature between fiscal years 2015 and 2041, at interest rates ranging from 3.0% to 5.0%. The Successor Agency will make 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 th e City using these revenues. The following is a summary of principal and interest payments to be made in future fis cal years: Fiscal Year Ending June 30,Principal Interest 2017 $ 225,000 $ 747,312 2018 235,000 739,825 2019 245,000 730,813 2020 250,000 721,537 2021 260,000 712,288 2022-2026 1,460,000 3,385,094 2027-2031 1,830,000 3,007,750 2032-2036 3,180,000 2,469,500 2037-2041 7,900,000 1,026,250 $ 15,585,000 $ 13,540,369 2010 Lease Revenue Bonds Item Number: C-1 Date: 01/24/17 Attachment: 1 88 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 54 NOTE 7 – LONG-TERM DEBT (continued) C. Changes in Long-Term Liabilities Long-term liability activity for the fiscal year ended June 30, 2016, was as follows: Balance June 30, 2015 Additions Payments Balance June 30, 2016 Due Within One Year Governmental Activities: Bonds Payable: 15,800,000$ -$ (215,000)$ 15,585,000$ 225,000$ Compensated Absences 1,161,602 929,004 (950,841) 1,139,765 - Premium on 2010 Lease Revenue Bonds 75,366 - (2,990) 72,376 2,982 66,299 118,604 (109,792) 75,111 - Net Pension Liability 15,565,170 5,145,150 (2,164,168) 18,546,152 - Other Post Employment Benefits 143,019 14,575 (4,800) 152,794 - Total Governmental Activities 32,811,456$ 6,207,333$ (3,447,591)$ $ 35,571,198 227,982$ Business-type Activities: Compensated Absences 22,211$ 34,073$ (32,314)$ 23,970$ -$ Net Pension Liability 628,771 228,315 (303,746) 553,340 - Total Business-type Activity $ 650,982 262,388$ $ (336,060) $ 577,310 -$ 2010 Lease Revenue Bonds Workers' Compensation estimated claims liability in excess of deposits NOTE 8 - EMPLOYEE RETIREMENT BENEFITS A. Public Employees’ Retirement System Summary of Significant Accounting Policies-Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Atascadero’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Item Number: C-1 Date: 01/24/17 Attachment: 1 89 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 55 NOTE 8 - EMPLOYEE RETIREMENT BENEFITS (continued) A. Public Employees’ Retirement System (continued) Plan Descriptions All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingl y, 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 statue and City of Atascad ero resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited services, equal to a fixed percentage of their highest annual salary formula as determined by the benefit program they participate in. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as spec ified by the Public Employees’ Retirement Law. The rate plan provisions and benefits in effect at June 30, 2016, are summarized as follows: Tier 1 Tier 2 Tier 3 Hire date Prior to July 1, 2012 On or after July 1, 2012 On or after January 1, 2013 Benefit formula 2.5% @ 55 2.0% @ 55 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-63 52-67 Monthly benefits, as a % of eligible compensation 2.0% to 2.5%1.426% to 2.418%1.0% to 2.5% Required employee contribution rates 8.00%7.00%6.50% Required employer contribution rates 10.612%8.844%6.73% Miscellaneous Plan Item Number: C-1 Date: 01/24/17 Attachment: 1 90 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 56 NOTE 8 - 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%11.50% Required employer contribution rates 18.52%15.63%11.15% 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 Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of the employees. The City’s contributions to the Plan for the fiscal year ended June 30, 2016, were $2,255,947. Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as note d 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 $1,073,883 in fiscal year 2016. B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2016, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $19,099,492. 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, 2015, 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, 2014, rolled forward to June 30, 2015 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. The City’s proportionate share of the net pension liability for the Plan as of measurement dates June 30, 2014 and 2015 was as follows: Item Number: C-1 Date: 01/24/17 Attachment: 1 91 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 57 NOTE 8 - EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) June 30, 2016 June 30, 2015 Measurement Date 6/30/2015 6/30/2014 Percentage of Plan (PERF C) Net Pension Liability 0.278260%0.260250%0.018010% Change: Increase/ (Decrease) Percentage share of Risk Pool Proportionate Percentage Share of Net Pension Liability For the fiscal year ended June 30, 2016, the City recognized pension expense of $1,172,222. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 2,255,947$ -$ Differences between actual and expected experience - 141,038 Changes in assumptions - 1,280,921 Change in employer's proportion 1,868,174 100,814 Differences between the employer's contributions and the employer's proportionate share of contributions 173,778 - Net differences between projected and actual earnings on plan investments - 646,841 Total 4,297,899$ 2,169,614$ All Plans Item Number: C-1 Date: 01/24/17 Attachment: 1 92 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 58 NOTE 8 - EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) $2,255,947 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended June 30 Deferred Outflows / (Inflows) of Resources 2017 (318,479)$ 2018 (307,279) 2019 (306,754) 2020 804,850 Actuarial Assumptions – For the measurement period ended June 30, 2015, the total pension liabilities were determined by rolling forward the June 30, 2014 total pension liability. The June 30, 2015 total pension liabilities were based on the following actuarial methods and assumptions: Valuation Date Measurement Date Actuarial Cost Method Acturarial Assumptions: Discount Rate Inflation Salary Increases Post Retirement Benefit Increase Mortality 2.75% Varies by Entry Age and Service Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power Applies, 2.75% thereafter Derived using CalPERS' Membership Data for all Funds Plan June 30, 2014 June 30, 2015 Entry Age Normal in accordance with the requirements of GASB Statement No. 68 7.65% Item Number: C-1 Date: 01/24/17 Attachment: 1 93 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 59 NOTE 8 - 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 20 years of mortality improvements using Society of Actuaries Scale BB. For more detail on this table, please refer to the 2014 Experience Study on the CalPERS website. All other actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study can be found on the CalPERS’ website. Change of Assumption GASB Statement No. 68, paragraph 68 states that the long-term expected rate of return should be demined net of the pension plan investment expense but without reduction for pension plan administrative expense. The discount rate was changed from 7.5 percent (net of administrative expense in 2014) to 7.65 percent as of June 30, 2015 measurement date to correct the adjustment which previously reduced the discount rate for administrative expense. Discount Rate The discount rate used to measure the total pension liability was 7.65% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for public agency plans (including PERF C), CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the plans, the tests revealed the assets would not run out. Therefore, the current 7.65 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.65 percent is to be applied to all plans in the Public Employees Retirement Fund, including PERF C. The stress test results are presented in a detailed report that can be obtained from the CalPERS website under the GASB 68 section. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of 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 (Public Employees’ Retirement Fund) cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. 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 (11-60 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. The expected rate of return was set by calculating the 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 equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The following table reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2014. Item Number: C-1Date: 01/24/17Attachment: 1 94 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 60 NOTE 8 - EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) Asset Class Current Target Allocation Real Return Years 1-10 (a) Real Return Years 11+ (b) Global Equity 51.0%5.25%5.71% Global Debt Securities 19.0%0.99%2.43% Inflation Sensitive 6.0%0.45%3.36% Private Equity 10.0%6.83%6.95% Real Estate 10.0%4.50%5.13% Infrastructure and Forestland 2.0%4.50%5.09% Liquidity 2.0%-0.55%-1.05% Total 100.0% (a) An expected inflation of 2.5% used for this period. (b) An expected inflation of 3.0% used for this period. Sensitivity of the Proportionate Share of the 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: Plan 1% Decrease 6.65% Net Pension Liability 29,653,406$ Current Discount Rate 7.65% Net Pension Liability 19,099,492$ 1% Increase 8.65% Net Pension Liability 10,419,622$ Item Number: C-1 Date: 01/24/17 Attachment: 1 95 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 61 NOTE 8 - 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, 201 6, 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 an FICA substitute. Members contribute 5% and the City contributes 2.5%. Total employee contributions for the year were $13,231, and total contributions from the City were $6,616. Nationwide Retirement Solutions is the public employee plan subsidiary of Nationwide Financial Services, Inc. (NYSE: NFS). NOTE 9 – 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 two people receivi ng benefits and fourteen other people that may become eligible for benefits under this program. Funding Policy The City accounts for this benefit on a pay-as-you-go basis. Postemployment 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, 2016, the City’s total contributions were $4,800. Item Number: C-1 Date: 01/24/17 Attachment: 1 96 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 62 NOTE 9 – OTHER POST EMPLOYMENT BENEFITS (continued) Annual OPEB Cost and Net OPEB Obligation The City‘s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC). The City has elected to calculate the ARC and related information using the alternative measurement method permitted by GASB Statement 45 for employers in plans with fewer than one hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the current year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation for the postemployment healthcare benefits: Annual required contribution 29,465$ Interest on net OPEB obligation 4,291 Adjustment to annual required contribution (19,181) Annual OPEB cost (expense)14,575 Contributions made (4,800) Increase (decrease in net OPEB obligation 9,775 Net OPEB obligation, beginning of year 143,019 Net OPEB obligation, end of year 152,794$ The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal years 2014, 2015, and 2016 were as follows: For Year Ended June 30 Annual OPEB Cost Contributions % of Annual OPEB Cost Contributed Net OPEB Obligation 2014 (9,049)$ 4,800$ n/a 145,177$ 2015 2,642$ 4,800$ 181.7%143,019$ 2016 14,575$ 4,800$ 32.9%152,794$ Item Number: C-1 Date: 01/24/17 Attachment: 1 97 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 63 NOTE 9 – OTHER POST EMPLOYMENT BENEFITS (continued) Funded Status and Funding Progress As of June 30, 2016, the actuarial accrued liability for benefits was $152,794 all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $1,104,621, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 13.8 percent. The projection of future benefit pa yments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents information about the actuarial value of plan assets and the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the emp loyer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value assets, consistent with the long-term perspective of the calculations. The following simplifying assumptions were made: Retirement age for active employees – Based on the historical average retirement age for the covered group, public safety acti ve plan members were assumed to retire at age 50, or at the first subsequent year in which the member would qualify for benefits and other ac tive plan members were assumed to retire at age 55, or at the first subsequent year in which the member would qualify for benefits. Mortality – All active and inactive plan members were expected to live through age 65 (the age that benefits terminate). Turnover – Non-group-specific age-based turnover data from GASB Statement 45 were used as the basis for assigning active members a probability of remaining employed until the assumed retirement/age and for development of an expected future working lifetime assumption for purposes of allocating to periods the present value of total benefits to be paid. 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, 2016, was twenty- four years. Item Number: C-1 Date: 01/24/17 Attachment: 1 98 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 64 NOTE 10 – REVENUE LIMITATIONS IMPOSED BY CALIFORNIA PROPOSITION 218 Proposition 218, which was approved by voters in November 1996, will regulate the City’s ability to impose, increase and extend taxes, assessments , and fees. Any new, increase, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter appro val before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fe es are subject to the voter initiative process and may be rescinded in the future years by the voters. NOTE 11 - 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 Agency (Authority). The Authority is composed of 116 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. 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. Retrospective adjustments are scheduled to continue indefinitely on coverage years 2012 -13 and prior, until all claims incurred during those coverage years are closed, on a pool-wide basis. This subsequent cost re-allocation among members, based on actual claim development, can result in adjustments of either refunds or additional deposits required. Coverage years 2013 -14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self -insurance programs is estimated using actuarial models and pre-funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll ) and experience (claims) relative to other members of the risk -sharing pool. Additional information regarding the cost allocation methodology is provided below. Liability In the 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 $30,000 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 cos ts from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred co sts from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. Item Number: C-1 Date: 01/24/17 Attachment: 1 99 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 65 NOTE 11 - RISK MANAGEMENT (continued) B. Self-Insurance Programs of the Authority (continued) Liability (continued) For 2015-16, the Authority’s pooled retention is $2 million per occurrence, with reinsurance to $20 million, and excess insurance to $50 m illion. The Authority’s reinsurance contracts are subject to the following additional pooled retentions: (a) $2.5 million annual aggregate deductible in the $3 million x/s $2 million layer, and (b) $3 million annual aggregate deductible in the $5 million x/s $10 million layer. There is a third an nual aggregate deductible in the amount of $2.5 million in the $5 million x/s $5 million layer, however it is fully covered under a separate policy and therefore not retained by the Authority. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Costs of covere d claims for subsidence losses have a sub-limit of $30 million per occurrence. Workers’ Compensation In the workers’ compensation program claims are pooled separately between public safety (police and fire) and general governm ent 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 $50,000 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 $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within t he first and second loss layers. For 2015-16 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as p art of a reinsurance policy, 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 $50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2014 through July 1, 2017. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy. 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 $80,638,976. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. Item Number: C-1 Date: 01/24/17 Attachment: 1 100 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 66 NOTE 11 - RISK MANAGEMENT (continued) C. Purchased Insurance (continued) Crime Insurance The City of Atascadero purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments. Special Event Tenant User Liability Insurance The City of Atascadero further protects against liability damages by requiring tenant users of certain property to purchase l ow-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid b y the tenant user and is paid to the City of Atascadero according to a schedule. The City of Atascadero then pays for the insurance. The insurance is arranged by the Authority. D. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2015 -16. E. Unemployment The City is fully self-insured for unemployment claims. F. Self Insurance The City retains the risk for losses incurred prior to joining the Authority. Several member agencies of the now dissolved Ce ntral Coast Cities Self- Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance for claims prior to joining the Authority. Losses are debited and investment income is credited to specific member accounts . The City has not incurred any losses in excess of insurance coverage. Item Number: C-1 Date: 01/24/17 Attachment: 1 101 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 67 NOTE 11 - RISK MANAGEMENT (continued) F. Self Insurance (continued) Self-insurance activity as of and for the fiscal year ended June 30, 2016, is summarized as follows: Workers' Compensation Interest earnings and other income 1,443$ Claims expense 108,349 Estimated liability for reported claims and settlement expenses 386,865 Assets on deposit 311,754 Assets in excess of (less than) liabilities (75,111)$ Workers' Compensation Deposits June 30, 2014 (86,686)$ Claim payments and related expenditures (91,139) (Increase) in estimated claims liability June 30, 2015 110,304 Deposits and interest earnings 1,212 Change in Fair Market Value 10 Deposits (unpaid claims liability) June 30, 2015 (66,299) Claim payments and related expenditures 108,349 (Increase) in estimated claims liability June 30, 2016 (118,604) Deposits and interest earnings 1,443 Deposits (unpaid claims liability) June 30, 2016 (75,111)$ Changes in the balances of claim liabilities during the past two fiscal years are as follows: Item Number: C-1 Date: 01/24/17 Attachment: 1 102 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 68 NOTE 12 – CONTINGENCIES AND COMMITMENTS The U.S. Department of Homeland Security, Office of Inspector General (OIG), issued a report to the Federal Emergency Management Agency (FEMA) in April 2012 regarding reimbursement funding for repair/rehabilitation projects resulting from the 2003 San Sim eon Earthquake. The report questioned $8,014,375 of funding that the FEMA determined as eligible. The OIG report was issued to FEMA and requires that FEMA respond to OIG directly. The City disagrees with OIG’s findings and believes that the expenses were eligible and in compliance with all local, state, and federal regulations. FEMA responded to OIG on December 3, 2012, and disagreed with OIG’s findings to disallow funding of $8,013,063. In that response, FEMA reaffirmed the eligibility of $2,654,978 f or City Hall relocation funding, $2,377,185 for replacement of the Printery Building, clarified that $2,980,900 of architecture and engine ering costs are still being negotiated by FEMA and the City, and agreed that $1,312 of Printery Building replacement c osts will be charged to the Historic City Hall Project instead. On July 29, 2013, the City received formal notice from the Governor’s Office of Emergency Services that FEMA approved a Project Worksheet to deobli gate $2,654,978. On September 17, 2013, the City formally appealed the deobligation decision and is still awaiting response. In a similar case, the United States District Court for the Southern District of Florida recently ruled in favor of South Florida Water Management District (District). The Court ordered FEMA to reinstate $21.8 million in previously deobligated funding to the District citing Section 705(c) of the Stafford Act. This Section of the Stafford Act was enacted by Congress in 2003 to protect recipients of disaster assistance fr om this type of FEMA retroactive claw back of funds. Atascadero’s appeal of the deobligation also cites Section 705(c) of the Stafford Act as a key argument. The full significance of the Florida District Court’s ruling on Atascadero’s appeal is yet to be determined, but this ruling could be beneficial. The City anticipates that it may take years to receive a final decision on the matter. On May 20, 2015, the City received notice from Cal OES that FEMA approved all authorized funding in the amount of $4,204,626 and closed out the Printery project. On November 17, 2015, the City received notice from Cal OES that FEMA approved eligible funding for the City Hall R ehabilitation project in the amount of $17,771,366 and closed out the project. Project Worksheet 239, City Hall Relocation, remains open due to the pending appeal. The City had received state and federal funds for specific purposes that are subject to review and audit by the grantor agenc ies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that other than the above mentioned issue, any required reimbursements will not be material. According to the City's attorney, no contingent liabilities are outstanding and no lawsuits of any significant financial consequence are pending or the risks are covered by the City’s insurance programs. Item Number: C-1 Date: 01/24/17 Attachment: 1 103 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 69 NOTE 12 – CONTINGENCIES AND COMMITMENTS (continued) Construction and other significant commitments as of June 30, 2016, including encumbrances outstanding at fiscal year-end, are as follows: Capital Commitments Fiscal Year 2015/2016 100 General Fund 441,388$ 201 Community Facilities District Fund 1,783 202 Apple Valley Street & Storm Drain Assessment District Fund 1,456 203 Apple Valley Landscape & Lighting Assessment District Fund 1,836 204 Las Lomas Street & Storm Drain Assessment District Fund 1,456 205 Las Lomas Landscape & Lighting Assessment District Fund 1,836 206 De Anza Street & Storm Drain Assessment District Fund 1,456 207 De Anza Landscape & Lighting Assessment District Fund 1,836 235 Atascadero Tourism Business Improvement Fund 19,000 265 Local Transportation Fund 659,947 281 Circulation System Fees Fund 785,956 286 Open Space Acquisition Fund 10,790 310 Capital Projects Fund 425,119 315 2010 Bond Proceeds Master Agreement Fund 129,140 527 Wastewater Fund 439,518 615 Building Maintenance Fund 14,324 680 Vehicle & Equipment Replacement Fund 24,461 820 Successor Agency General Fund 27,933 Total 2,989,235$ Item Number: C-1 Date: 01/24/17 Attachment: 1 104 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 70 NOTE 13 – NET POSITION GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified as either net investment in capital assets, restricted, or unrestricted. Net position that is net investment in capital assets consist of capital assets, net of accumulated depreciation, a nd reduced by the outstanding principal of related debt. Restricted net position is the portion of net position that has external constraints placed on it by creditors, granto rs, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislation. Unrestricted net position consists of net position that does not meet the definiti on 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 are 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 c apital projects, debt service requirements, and redevelopment funds restricted to low and moderate income purposes. Restricted Net Position includes $37,874,167 restricted by enabling legislation. Unrestricted describes the portion of Net Position which is not restricted as to use. NOTE 14 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1x 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Atascadero , which had previously reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that, upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “s uccessor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution Number 2012 -002. Item Number: C-1 Date: 01/24/17 Attachment: 1 105 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 71 NOTE 14 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGE NCY (continued) After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter i nto new project, obligations or commitments. Subject to the control of a newly established 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 o f the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full an d 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 r edevelopment agencies and other public bodies that occurred after January 1, 2011. If the public b ody that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public b ody designated as the successor agency by the Bill. Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceabl e obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial author ity that would resolve this issue unfavorably to the City. 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 govern mental 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 rec eived a Finding of Completion (FOC) from the State Department of Finance on March 8, 2013. In order to be eligible for the FOC, the Successor Agency had to meet the following requirements:  pay the housing fund balance as determined by Due Diligence Review;  pay the non-housing fund balance as determined by Due Diligence Review; and  pay the balance of any outstanding pass-through obligations and residual payments. Item Number: C-1 Date: 01/24/17 Attachment: 1 106 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 72 NOTE 14 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) A. Notes Receivable The Housing Successor Agency is holding $200,000 in Notes Receivable as part of the Downtown Stimulus Program. The former Re development Agency used the Downtown Stimulus Program as a tool to encourage investors to provide affordable housing in the downtown area. Neither the principal nor interest shall be payable under the Note for the term of 55 years; or until such time as the Program Participant sells or oth erwise transfers the site. The Notes will be forgiven in full after the period of 55 years. B. Capital Assets Capital assets activity in the Private Purpose Trust Funds for the fiscal year ended June 30, 2016, was as follows: Balance June 30, 2015 Additions Deletions Balance June 30, 2016 Fiduciary Funds Non-Depreciable Capital Assets Land 413,791$ -$ -$ 413,791$ Total non-depreciable capital assets 413,791 - - 413,791 Depreciable Capital Assets Structures and improvements 2,369,216 - - 2,369,216 Total depreciable capital assets 2,369,216 - - 2,369,216 Less Accumulated Depreciation (178,050) (52,112) - (230,162) Net depreciable capital assets 2,191,166 (52,112) - 2,139,054 Net fiduciary-type capital assets 2,604,957$ (52,112)$ -$ 2,552,845$ Item Number: C-1 Date: 01/24/17 Attachment: 1 107 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 73 NOTE 14 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) C. Loans Payable The City General Fund loaned three separate advances to the former Redevelopment Agency. The total of these three loans is $1,375,175 and is now a liability of the Successor Agency. 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. 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 th e 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 201 5 and 2041, at interest rates ranging from 3.0% to 5.0%. See Note 7B – Long Term Debt, 2010 Lease Revenue Bonds, for additional inform ation. E. 2004 Redevelopment Agency Tax Allocation Bonds The former Atascadero Community Redevelopment Agency (Agency) issued $12,490,000 in Tax Allocation bonds for improvements to the downtow n core. These bonds mature between fiscal years 2011 and 2035, at interest rates ranging from 3.00% to 5.00%. Since the Agenc y 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. Item Number: C-1 Date: 01/24/17 Attachment: 1 108 of 210 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2016 74 NOTE 14 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) E. 2004 Redevelopment Agency Tax Allocation Bonds (continued) The following is a summary of principal and interest payments to be made in future fiscal years: Fiscal Year Ending June 30,Principal Interest 2017 $ 355,000 490,323$ 2018 365,000 475,375 2019 380,000 459,167 2020 400,000 441,808 2021 415,000 423,262 2022-2026 2,390,000 1,799,995 2027-2031 3,030,000 1,143,688 2032-2035 3,015,000 310,625 $ 10,350,000 $ 5,544,243 2004 Redevelopment Agency Tax Allocation Bonds Item Number: C-1 Date: 01/24/17 Attachment: 1 109 of 210 REQUIRED SUPPLEMENTARY INFORMATION Item Number: C-1 Date: 01/24/17 Attachment: 1 110 of 210 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, 2016 Original Final Actual Amounts Revenues: Secured and unsecured property taxes 8,228,060$ 8,228,060$ 8,315,801$ 87,741$ Taxes based on sales and use 5,623,550 5,624,840 5,907,573 282,733 Franchise tax 1,035,500 1,035,500 1,047,678 12,178 Other taxes 1,269,600 1,269,600 1,552,275 282,675 Licenses and permits 540,900 540,900 518,013 (22,887) Intergovernmental revenues: Motor vehicle in-lieu and related payments 11,500 11,500 11,769 269 Grants 23,710 106,900 103,203 (3,697) Other governmental revenues 201,260 201,830 126,224 (75,606) Charges for services: Public safety 487,830 866,710 947,282 80,572 Development 509,130 610,210 596,370 (13,840) Recreation, parks, pavilion and zoo 800,660 805,030 866,488 61,458 Other services 44,200 44,200 47,591 3,391 Fines and forfeitures 102,120 102,120 92,007 (10,113) Use of money and property 62,270 62,270 136,472 74,202 Other revenues 1,705,370 1,907,260 1,622,025 (285,235) Total revenues 20,645,660 21,416,930 21,890,771 473,841 Expenditures: Employee services 13,839,730 13,993,820 13,429,637 564,183 Operating supplies & services 4,755,580 5,094,360 4,834,594 259,766 Special purchases, projects and community funding 403,700 536,450 370,934 165,516 Capital outlay 2,455,660 2,781,710 931,735 1,849,975 Total expenditures 21,454,670 22,406,340 19,566,900 2,839,440 Excess of revenues over (under) expenditures (809,010) (989,410) 2,323,871 3,313,281 Budget Variance with Final Budget Positive (Negative) 75 Item Number: C-1 Date: 01/24/17 Attachment: 1 111 of 210 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, 2016 Original Final Actual Amounts Other Financing Sources (Uses): Transfers in 391,090$ 391,090$ 391,090$ -$ Transfers out (1,400) (1,400) (1,400) - Total other financing sources and uses 389,690 389,690 389,690 - Net changes in fund balance (419,320)$ (599,720)$ 2,713,561 3,313,281$ Fund balance - June 30, 2015 8,925,146 Fund balance - June 30, 2016 11,638,707$ Budget Variance with Final Budget Positive (Negative) 76 Item Number: C-1 Date: 01/24/17 Attachment: 1 112 of 210 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, 2016 Original Final Actual Amounts Revenues: Taxes: Property taxes: Secured property tax 5,378,740$ 5,378,740$ 5,403,114$ 24,374$ Property tax in lieu of VLF 2,432,830 2,432,830 2,450,630 17,800 Unsecured property taxes 148,020 148,020 143,166 (4,854) Supplemental property taxes 141,100 141,100 143,312 2,212 132,370 132,370 181,523 49,153 Prior year secured and unsecured (5,000) (5,000) (5,680) (680) Property tax penalties and interest - - (264) (264) Taxes based on sales: Sales and use taxes 3,038,450 3,038,450 3,108,843 70,393 Sales tax in-lieu payments 680,000 680,000 703,614 23,614 Measure F-14 Sales Tax 1,905,100 1,906,390 2,095,116 188,726 Transient occupancy tax 966,220 966,220 1,238,431 272,211 Franchise taxes: Cable television franchise fees 224,010 224,010 228,309 4,299 Electricity franchise fees 226,670 226,670 242,278 15,608 Garbage disposal franchise fees 356,850 356,850 364,965 8,115 Landfill franchise fees 38,630 38,630 39,163 533 Recycling franchise fees 17,870 17,870 19,042 1,172 Gas franchise fees 135,000 135,000 116,800 (18,200) Wastewater franchise fees 36,470 36,470 37,121 651 Business licenses 160,000 160,000 169,119 9,119 Property transfer tax 143,380 143,380 144,725 1,345 Total Taxes 16,156,710 16,158,000 16,823,327 665,327 Licenses and Permits: Construction permits 456,530 456,530 447,951 (8,579) Grading and drainage permits 29,240 29,240 23,310 (5,930) Encroachment permits 43,860 43,860 32,322 (11,538) Tree application fees 8,770 8,770 11,748 2,978 Planning Inspections 2,500 2,500 2,682 182 Total Licenses and Permits 540,900 540,900 518,013 (22,887) Redevelopment Agency Dissolution- residual distribution Budget Variance with Final Budget Positive (Negative) 77 Item Number: C-1 Date: 01/24/17 Attachment: 1 113 of 210 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, 2016 Original Final Actual Amounts Revenues (continued): Intergovernmental Revenues: Motor vehicle in-lieu (VLF)11,500$ 11,500$ 11,769$ 269$ Homeowners' tax relief 45,000 45,000 45,197 197 State mandated costs 131,260 131,260 54,428 (76,832) P.O.S.T. reimbursement 25,000 25,570 26,599 1,029 Grants: Fire Safe Council grant 22,140 22,140 4,087 (18,053) 2015 OTS Traffic Enforcement Grant - 11,000 10,995 (5) 2015 OTS DUI Enforcement Grant - 14,160 14,157 (3) BSCC Realignment - 58,030 53,896 (4,134) Bulletproof Vest Grant 1,570 1,570 - (1,570) FEMA earthquake funding - - 12,233 12,233 CalEMA earthquake funding - - 7,835 7,835 Total Intergovernmental Revenues 236,470 320,230 241,196 (79,034) Charges for Services: Public safety: First response charges 111,180 111,180 111,782 602 Weed abatement services 93,000 93,000 41,394 (51,606) Mutual Aid 250,000 623,680 758,524 134,844 Police/Fire false alarms 2,200 2,200 2,197 (3) Fire classes - 5,200 5,200 - Fingerprints 11,000 11,000 7,316 (3,684) Vehicle release fees 16,000 16,000 16,198 198 Other public safety services 4,450 4,450 4,671 221 Budget Variance with Final Budget Positive (Negative) 78 Item Number: C-1 Date: 01/24/17 Attachment: 1 114 of 210 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, 2016 Original Final Actual Amounts Revenues (continued): Charges for Services (continued): Development: Zoning fees 35,000$ 35,000$ 22,836$ (12,164)$ Subdivision fees- Planning 25,000 25,000 20,046 (4,954) Subdivision fees- Public Works 6,120 6,120 6,674 554 General and specific plans 11,490 11,490 3,836 (7,654) EIR and annexations fees 80,000 133,560 133,565 5 Appeals 950 950 1,535 585 Assessment District Formation & Annexes - - 31,288 31,288 Planning review 33,550 33,550 31,957 (1,593) Building plan check fees 190,050 237,570 240,710 3,140 Public Works plan check fees 52,630 52,630 55,807 3,177 Fire plan check & inspection fees 52,630 52,630 46,016 (6,614) Public improvements revenue 20,170 20,170 144 (20,026) Other planning fees 1,540 1,540 1,956 416 Recreation: Advertising - - 5,149 5,149 Aquatics 29,900 29,900 27,915 (1,985) Adult sports 40,800 40,800 34,903 (5,897) Youth sports 57,000 58,720 61,959 3,239 Classes 124,000 124,000 128,618 4,618 Special events 32,000 34,650 59,963 25,313 Special events- Zoo 2,500 2,500 25,859 23,359 Teen Center membership 2,500 2,500 2,614 114 Rentals & concessions: Pavilion facility rentals 85,360 85,360 86,854 1,494 Other Pavilion rents and concessions 27,410 27,410 26,965 (445) Colony Park Community Center rentals 18,550 18,550 18,592 42 Historic City Hall Rentals - - 320 320 Other facility rentals 2,400 2,400 3,401 1,001 Park charges 28,480 28,480 32,984 4,504 Zoo: Zoo admissions 240,000 240,000 233,701 (6,299) Zoo educational programs 10,000 10,000 13,270 3,270 Zoo gift shop 99,760 99,760 102,249 2,489 Other Zoo revenues - - 1,172 1,172 Budget Variance with Final Budget Positive (Negative) 79 Item Number: C-1 Date: 01/24/17 Attachment: 1 115 of 210 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, 2016 Original Final Actual Amounts Revenues (continued): Charges for Services (continued): Administrative: Copy and mailing fees 5,660$ 5,660$ 4,397$ (1,263)$ Document imaging fee 17,540 17,540 14,575 (2,965) Business license application fees 21,000 21,000 28,619 7,619 Total Charges for Services 1,841,820 2,326,150 2,457,731 131,581 Fines and Forfeitures: Motor vehicle fines 70,000 70,000 60,602 (9,398) Traffic school fines 2,500 2,500 - (2,500) Misdemeanor and other minor fines 8,390 8,390 10,453 2,063 Parking fines 1,400 1,400 227 (1,173) Fire and code enforcement fines 400 400 500 100 Business license penalties 7,200 7,200 8,122 922 Other penalties 12,230 12,230 12,103 (127) Total Fines and Forfeitures 102,120 102,120 92,007 (10,113) Use of Money and Property: Interest 59,000 59,000 105,686 46,686 Interest on Measure F-14 Funds 3,270 3,270 30,786 27,516 Total Use of Money and Property 62,270 62,270 136,472 74,202 Other Revenues: Interfund administrative charges General overhead charges 356,960 356,960 356,960 - Staffing charges for other funds 394,080 394,080 381,656 (12,424) Staffing charges for capital projects 200,000 200,000 59,234 (140,766) Staffing charges for CDBG administration 13,000 13,000 6,314 (6,686) Administrative charges- Third Parties 1,720 1,720 2,657 937 Administrative charges- Successor Agency 250,000 250,000 250,000 - Workers' comp reimbursement 15,000 15,000 20,440 5,440 Miscellaneous revenue 10,430 10,430 18,207 7,777 Dove Creek commercial agreement 40,000 40,000 40,000 - Budget Variance with Final Budget Positive (Negative) 80 Item Number: C-1 Date: 01/24/17 Attachment: 1 116 of 210 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, 2016 Original Final Actual Amounts Revenues (continued): Other Revenues (continued): Donations: Police -$ 2,320$ 2,310$ (10)$ Fire 398,180 579,440 401,465 (177,975) Other donations 1,000 3,560 3,760 200 Friends of Zoo Donations: Memberships 23,000 23,000 45,121 22,121 Zoo Wine Festival Donations: New Madagascar Exhibit - 15,750 18,265 2,515 Other Zoo donations 2,000 2,000 15,636 13,636 Total Other Revenues 1,705,370 1,907,260 1,622,025 (285,235) Total Revenues 20,645,660 21,416,930 21,890,771 473,841 Variance with Final Budget Positive (Negative) Budget 81 Item Number: C-1 Date: 01/24/17 Attachment: 1 117 of 210 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, 2016 Original Final Actual Amounts Expenditures: City Council: Salaries and benefits 27,580$ 27,580$ 27,346$ 234$ Office expense 500 500 2 498 Advertising 500 560 560 - Computer maintenance and replacement 3,560 3,560 3,560 - Occupancy 39,420 39,420 39,420 - Communications 350 350 314 36 Operating supplies 3,640 4,380 4,372 8 Vehicle & equipment operating costs 200 - - - Contract services 36,000 36,210 36,206 4 Professional development 22,950 30,050 29,948 102 Community outreach 50,720 39,700 39,552 148 Chamber of Commerce 77,150 80,260 80,259 1 Business development 16,260 16,260 5,000 11,260 LAFCO contribution 18,670 18,670 17,477 1,193 Special projects & community funding: Promotions 200,000 200,000 181,394 18,606 Total City Council 497,500 497,500 465,410 32,090 City Clerk: Salaries and benefits 2,510 5,370 5,348 22 Office expense 630 350 342 8 Advertising 5,200 10,390 10,385 5 Contract services 6,070 2,540 2,537 3 Professional development 6,210 4,870 4,870 - Municipal election 150 100 99 1 Total City Clerk 20,770 23,620 23,581 39 Budget Variance with Final Budget Positive (Negative) 82 Item Number: C-1 Date: 01/24/17 Attachment: 1 118 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): City Treasurer: Salaries and benefits 3,150$ 3,150$ 3,117$ 33$ Contract services 10,000 10,190 10,184 6 Professional development 310 120 77 43 Total City Treasurer 13,460 13,460 13,378 82 City Attorney: Office expense 90 90 39 51 Communications 70 70 57 13 Contract services 254,900 404,900 372,102 32,798 Total City Attorney 255,060 405,060 372,198 32,862 City Manager: Salaries and benefits 940,760 940,760 875,242 65,518 Office expense 7,680 7,750 7,748 2 Computer maintenance and replacement 37,820 37,830 37,825 5 Insurance 9,250 9,250 8,316 934 Occupancy 27,030 27,030 27,030 - Communications 2,150 2,150 1,870 280 Operating supplies 9,900 9,900 6,859 3,041 Vehicle & equipment operating costs 6,260 6,420 6,416 4 Contract services 34,020 32,400 10,716 21,684 Professional development 21,830 21,830 13,755 8,075 Citywide training 19,000 19,000 2,804 16,196 Recruitment 500 1,880 1,874 6 Employee development 1,650 1,650 1,401 249 Contingency 100,000 21,100 - 21,100 Total City Manager 1,217,850 1,138,950 1,001,856 137,094 Budget Variance with Final Budget Positive (Negative) 83 Item Number: C-1 Date: 01/24/17 Attachment: 1 119 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Administrative Services: Salaries and benefits 722,570$ 722,570$ 655,666$ 66,904$ Office expense 15,310 15,310 10,850 4,460 Advertising 380 380 288 92 Computer maintenance and replacement 72,390 72,730 72,729 1 Insurance 13,500 13,500 12,266 1,234 Occupancy 41,540 41,540 40,536 1,004 Communications 950 950 902 48 Operating supplies 200 200 20 180 Vehicle & equipment operating costs 3,650 3,670 3,661 9 Contract services 175,880 174,510 155,685 18,825 Professional development 7,970 7,970 5,557 2,413 Recruitment 300 300 130 170 Safety Committee 500 500 - 500 Contingency 5,000 5,000 - 5,000 Special purchases, projects & studies: Chairs 2,300 2,300 - 2,300 Development Impact Fee Study 42,000 42,000 7,000 35,000 Capital Outlay: Computer Equipment 850 850 - 850 Total Administrative Services 1,105,290 1,104,280 965,290 138,990 Police: Salaries and benefits 5,018,430 5,018,430 4,833,242 185,188 Office expense 14,130 16,400 16,203 197 Computer maintenance and replacement 273,170 270,900 270,650 250 Insurance 219,790 219,790 219,790 - Occupancy 39,870 43,870 43,866 4 Utilities 39,750 35,750 34,280 1,470 Communications 30,400 47,600 47,596 4 Operating supplies 19,930 19,930 17,837 2,093 Vehicle & equipment operating costs 290,750 267,400 245,736 21,664 Contract services 282,350 257,690 254,895 2,795 Professional development 9,380 11,060 11,050 10 Recruitment 9,050 3,950 493 3,457 Contingency 10,000 10,000 - 10,000 Budget Variance with Final Budget Positive (Negative) 84 Item Number: C-1 Date: 01/24/17 Attachment: 1 120 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Police (continued): Special purchases, projects & studies: Other Office Furniture -$ 440$ 432$ 8$ Oven/range - 720 711 9 Small printers - 270 270 - Personal protective vests - 4,350 4,342 8 Security fencing 3,110 3,110 - 3,110 Flooring projects - 5,100 5,100 - Capital Outlay: Interior office construction 6,500 6,500 - 6,500 - 23,350 23,349 1 6,266,610 6,266,610 6,029,842 236,768 Police Grants: Salaries and benefits - 22,930 22,922 8 Operating supplies 2,000 2,770 2,761 9 Contract services 2,040 1,910 1,910 - Professional development 33,710 38,190 38,190 - Special purchases, projects & studies: Personal protective vests 3,130 3,130 - 3,130 Capital Outlay: - 58,030 53,895 4,135 40,880 126,960 119,678 7,282 Total Police 6,307,490 6,393,570 6,149,520 244,050 Fire: Salaries and benefits 3,506,830 3,506,450 3,333,446 173,004 Office expense 5,280 10,400 10,395 5 Computer maintenance and replacement 156,390 169,200 169,194 6 Insurance 64,750 58,540 58,537 3 Occupancy 27,350 31,380 31,380 - Utilities 22,300 20,930 20,924 6 Communications 16,280 10,190 10,185 5 Operating supplies 43,550 52,200 52,168 32 137,000 121,020 121,014 6 Vehicle and equipment operating costs Budget Variance with Final Budget Positive (Negative) Cash contribution to Vehicle & Equipment Maintenance Fund for Command Vehicle Cash contribution to Vehicle & Equipment Maintenance Fund for Radio Simulcast 85 Item Number: C-1 Date: 01/24/17 Attachment: 1 121 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Fire (continued): Contract services 20,000$ 21,250$ 21,242$ 8$ Professional development 24,980 16,300 16,295 5 Recruitment 400 950 944 6 Contingency 10,000 9,220 - 9,220 Special purchases, projects & studies: Chairs - 990 989 1 Refrigerator - 4,610 2,747 1,863 Capital outlay: Tablet Computers - 1,100 1,094 6 210,000 210,000 186,609 23,391 4,245,110 4,244,730 4,037,163 207,567 Mutual Aid Program: Salaries and benefits 139,600 507,010 506,917 93 Office expenses 30 - - - Operating supplies 27,200 33,120 33,119 1 Vehicle & equipment operating costs - 1,380 1,374 6 Contract services 1,000 - - - 167,830 541,510 541,410 100 Weed Abatement and Other Fire Programs: Salaries and benefits - 1,860 1,847 13 Office expense 6,100 3,100 1,793 1,307 Advertising 500 440 - 440 Communications 2,500 2,500 - 2,500 Operating supplies 5,530 5,330 1,151 4,179 Vehicle & equipment operating costs - 600 594 6 Contract services 70,000 75,580 70,308 5,272 Special purchases, projects & studies: San Marcos shaded fuel break 6,910 6,910 - 6,910 ALPS/Chandler Ranch fuel break 9,930 9,930 112 9,818 Fire hose 2,770 2,770 2,737 33 Budget Variance with Final Budget Positive (Negative) Cash contribution to Vehicle & Equipment Maintenance Fund for Breathing Apparatus 86 Item Number: C-1 Date: 01/24/17 Attachment: 1 122 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Weed Abatement and Other Fire Programs (continued): Capital outlay: EKG Monitors -$ 145,500$ -$ 145,500$ Disaster response trailer enclosure - 800 800 - 132,380 132,380 132,380 - - 35,760 31,999 3,761 255,000 255,000 231,647 23,353 491,620 678,460 475,368 203,092 Total Fire 4,904,560 5,464,700 5,053,941 410,759 Community Development: Salaries and benefits 1,113,110 990,510 990,490 20 Office expense 14,140 16,510 16,179 331 Advertising 4,160 6,140 6,138 2 Computer maintenance and replacement 83,900 78,610 78,602 8 Insurance 16,210 14,570 14,569 1 Occupancy 43,210 43,210 43,210 - Communications 1,870 2,670 2,667 3 Operating supplies 1,040 670 665 5 Vehicle operations 15,440 12,160 12,158 2 Contract services 94,040 264,300 264,292 8 Professional development 12,220 11,890 11,882 8 Recruitment 1,040 7,180 7,177 3 Contingency 5,000 - - - Special purchases, projects & studies: Eagle Ranch EIR 80,000 80,000 27,755 52,245 Eagle Ranch Specific Plan - 58,040 58,031 9 Capital outlay: Tablet Computers 850 850 - 850 Total Community Development 1,486,230 1,587,310 1,533,815 53,495 Budget Variance with Final Budget Positive (Negative) Cash contribution to Vehicle & Equipment Maintenance Fund for Breathing Apparatus Cash contribution to Vehicle & Equipment Maintenance Fund for Radio Simulcast Cash contribution to Vehicle & Equipment Maintenance Fund for Fire Engines 87 Item Number: C-1 Date: 01/24/17 Attachment: 1 123 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Central Reception: Salaries and benefits 43,140$ 44,780$ 44,779$ 1$ Office expense 1,130 1,140 1,138 2 Computer maintenance and replacement 6,260 6,260 6,260 - Insurance 1,360 1,220 1,220 - Occupancy 31,540 31,540 31,540 - Communications 360 260 256 4 Operating Supplies - 30 22 8 Vehicle & equipment operating costs 210 - - - Professional development 160 - - - Recruitment 100 - - - Total Central Reception 84,260 85,230 85,215 15 Recreation: Salaries and benefits 277,280 315,090 315,014 76 Office expense 4,260 7,290 7,266 24 Advertising 28,300 24,570 24,556 14 Computer maintenance and replacement 12,110 12,110 12,110 - Insurance 12,020 12,500 12,491 9 Occupancy 39,020 37,330 37,314 16 Utilities 5,130 4,000 3,991 9 Communications 380 550 542 8 Operating supplies 26,790 24,190 24,170 20 Vehicle and equipment operating costs 1,090 1,090 1,087 3 Contract services 138,360 129,480 129,439 41 Professional development 1,350 3,460 3,452 8 Recruitment 500 1,720 1,710 10 Contingency 2,500 - - - Special purchases, projects & studies: Senior Scholarships - 30 21 9 Youth Scholarships - 1,620 1,619 1 Total Recreation 549,090 575,030 574,782 248 Budget Variance with Final Budget Positive (Negative) 88 Item Number: C-1 Date: 01/24/17 Attachment: 1 124 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Community Center: Salaries and benefits 52,370$ 52,370$ 50,572$ 1,798$ Office expense 1,040 1,310 1,305 5 Advertising 400 130 - 130 Computer maintenance and replacement 9,380 9,380 9,380 - Insurance 6,000 6,000 5,706 294 Occupancy 85,380 85,380 85,280 100 Utilities 44,750 44,750 43,512 1,238 Communications 1,940 1,940 1,155 785 Operating supplies 15,100 14,480 9,344 5,136 Vehicle and equipment operations 2,640 2,640 203 2,437 Contract services 18,180 18,180 7,391 10,789 Professional development 1,440 1,440 - 1,440 Recruitment 250 250 32 218 Special purchases, projects & studies: Folding chairs and tables - 620 615 5 Total Community Center 238,870 238,870 214,495 24,375 Pavilion: Salaries and benefits 127,670 135,760 135,739 21 Office expense 1,320 1,110 979 131 Advertising 5,000 2,340 2,243 97 Computer maintenance and replacement 7,170 7,170 7,170 - Insurance 3,700 3,700 3,409 291 Occupancy 34,270 34,270 34,270 - Utilities 24,300 19,430 18,843 587 Communications 1,220 1,250 1,249 1 Operating supplies 9,360 6,070 5,814 256 Vehicle and equipment operating costs 1,250 1,250 6 1,244 Contract services 26,730 28,730 24,300 4,430 Professional development 680 680 395 285 Recruitment 210 320 312 8 Business development - 800 795 5 Total Pavilion 242,880 242,880 235,524 7,356 Budget Variance with Final Budget Positive (Negative) 89 Item Number: C-1 Date: 01/24/17 Attachment: 1 125 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Zoo: Salaries and benefits 669,940$ 662,650$ 662,593$ 57$ Office expense 1,690 1,600 1,592 8 Advertising 1,000 1,700 1,695 5 Computer maintenance and replacement 29,050 32,370 32,365 5 Insurance 9,660 8,870 8,866 4 Occupancy 36,410 36,510 36,503 7 Utilities 41,530 42,540 42,526 14 Communications 570 860 851 9 Operating supplies 83,250 82,270 82,262 8 Vehicle and equipment operating costs 5,820 5,880 5,879 1 Contract services 58,930 94,400 94,390 10 Professional development 10,400 14,530 14,519 11 Recruitment 100 140 136 4 Gift Shop retail 35,000 35,000 32,495 2,505 Special purchases, projects & studies: Animal acquisition - 3,090 3,085 5 Zoo exhibit improvements - 1,500 1,500 - Deferred maintenance projects - 530 530 - Capital outlay: New Madagascar radiated tortoise exhibit 2,520 18,270 18,265 5 New keel billed toucan exhibit 4,290 4,290 - 4,290 New wallaby exhibit 3,960 7,120 7,113 7 Aviary rehabilitation project 3,910 4,090 4,088 2 Water utility renovation - 10,320 10,319 1 Electrical upgrade project 500 910 910 - Total Zoo 998,530 1,069,440 1,062,482 6,958 Variance with Final Budget Positive (Negative) Budget 90 Item Number: C-1 Date: 01/24/17 Attachment: 1 126 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Public Works Administration: Salaries and benefits 633,240$ 503,850$ 493,899$ 9,951$ Office expense 6,200 3,370 3,235 135 Advertising 300 - - - Computer maintenance and replacement 40,450 45,780 45,777 3 Insurance 10,080 9,070 9,068 2 Occupancy charges 17,710 17,710 17,710 - Communications 2,400 2,360 2,357 3 Operating supplies 13,500 12,050 12,045 5 Vehicle operations 6,470 6,810 6,808 2 Contract services 15,500 151,540 151,538 2 Professional development 4,350 2,320 2,316 4 Recruitment 1,000 1,570 1,562 8 Contingency 7,000 - - - Special purchases, projects & studies: Storm water permits 24,200 24,200 21,131 3,069 Five-Year Capital Improvement Plan 8,670 10,440 1,763 8,677 Capital Outlay: Computers- New 850 850 - 850 - 12,440 11,305 1,135 Total Public Works Administration 791,920 804,360 780,514 23,846 Variance with Final Budget Positive (Negative) Budget Cash contribution to Vehicle & Equipment Maintenance Fund for Command Vehicle 91 Item Number: C-1 Date: 01/24/17 Attachment: 1 127 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Public Works Operations: Salaries and benefits 192,150$ 192,150$ 190,992$ 1,158$ Office expense 3,360 2,810 2,736 74 Computer maintenance and replacement 8,670 8,670 8,670 - Insurance 3,110 3,110 2,847 263 Occupancy charges 10,570 10,910 10,907 3 Utilities 8,100 7,710 7,705 5 Communications 750 1,490 1,486 4 Operating supplies 650 1,820 1,779 41 Vehicle & equipment operating costs 1,600 960 959 1 Professional development 1,200 530 215 315 Total Public Works Operations 230,160 230,160 228,296 1,864 Parks: Salaries and benefits 369,400 340,550 280,466 60,084 Computer maintenance and replacement 7,140 7,140 7,140 - Insurance 7,280 7,280 6,537 743 Occupancy 19,760 19,760 19,760 - Utilities 160,500 110,140 109,595 545 Communications 1,600 1,600 1,382 218 Operating supplies 39,380 43,440 43,434 6 Vehicle and equipment operations 27,470 26,460 18,784 7,676 Contract services 22,290 51,140 51,138 2 Professional development 1,200 1,360 1,355 5 Special purchases, projects & studies: Memorial Park Benches - 1,410 1,404 6 Repair Utility Vehicle 6,610 6,610 - 6,610 Lake Fill Line Protection Project - 30,370 30,362 8 Lake Water Quality Improvements - 16,280 16,275 5 Total Parks 662,630 663,540 587,632 75,908 Budget Variance with Final Budget Positive (Negative) 92 Item Number: C-1 Date: 01/24/17 Attachment: 1 128 of 210 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, 2016 Original Final Actual Amounts Expenditures (continued): Measure F-14 Sales Tax Capital outlay: Alamo Avenue Pavement Project 36,710$ 36,900$ 36,893$ 7$ Honda Avenue Pavement Project 36,710 37,810 37,809 1 Pavement Maintenance Projects 223,780 241,740 10,713 231,027 Pavement Rehabilitation Projects 1,536,850 1,536,850 132,547 1,404,303 Total Measure F-14 Sales Tax 1,834,050 1,853,300 217,962 1,635,338 Non-Departmental: Special purchases, projects & studies: Moving into & furnishings for City Hall - 1,010 1,009 1 Security Camera Equipment 14,070 14,070 - 14,070 Total Non-Departmental 14,070 15,080 1,009 14,071 Total expenditures 21,454,670 22,406,340 19,566,900 2,839,440 Excess of revenues over (under) expenditures (809,010) (989,410) 2,323,871 3,313,281 Other Financing Sources (Uses): 391,090 391,090 391,090 - (1,400) (1,400) (1,400) - Total other financing sources (uses)389,690 389,690 389,690 - Excess of revenues and other sources over (under) expenditures and other uses (419,320)$ (599,720)$ 2,713,561 3,313,281$ Fund balance, June 30, 2015 8,925,146 Fund balance, June 30, 2016 11,638,707$ Variance with Final Budget Positive (Negative) Transfer from Community Facilities District Fund Transfer to De Anza Landscape & Lighting District for open space maintenance Budget 93 Item Number: C-1 Date: 01/24/17 Attachment: 1 129 of 210 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 -$ -$ 784,082$ 784,082$ Affordable Housing Program Loans - - (230,200) (230,200) Interest income 3,910 3,910 9,358 5,448 Total revenues 3,910 3,910 563,240 559,330 Expenditures: Contract services 5,000 5,000 - 5,000 Administrative charges 45,960 45,960 45,960 - Total expenditures 50,960 50,960 45,960 5,000 Net change in fund balance (47,050)$ (47,050)$ 517,280 564,330$ Fund balance, June 30, 2015 5,194,688 Fund balance, June 30, 2016 5,711,968$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2016 94 Item Number: C-1 Date: 01/24/17 Attachment: 1 130 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 704,160$ 704,160$ 482,262$ (221,898)$ Mitigation Fees- Del Rio Interchange 850,000 850,000 - (850,000) Interest income 20,250 20,250 48,351 28,101 Total revenues 1,574,410 1,574,410 530,613 (1,043,797) Expenditures: Capital outlay: 101 @ Del Rio Interchange Project 403,770 403,770 153,142 250,628 Total expenditures 403,770 403,770 153,142 250,628 Net change in fund balance 1,170,640$ 1,170,640$ 377,471 (793,169)$ Fund balance, June 30, 2015 1,519,187 Fund balance, June 30, 2016 1,896,658$ Budget Variance with Final Budget Positive (Negative) 95 Item Number: C-1 Date: 01/24/17 Attachment: 1 131 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 19,440$ 19,440$ 15,461$ (3,979)$ Total revenues 19,440 19,440 15,461 (3,979) Net change in fund balance 19,440$ 19,440$ 15,461 (3,979)$ Fund balance, June 30, 2015 (860,324) Fund balance, June 30, 2016 (844,863)$ Budget Variance with Final Budget Positive (Negative) 96 Item Number: C-1 Date: 01/24/17 Attachment: 1 132 of 210 CITY OF ATASCADERO SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS For the Fiscal Year Ended June 30, 2016 The following table provides required supplementary information regarding the City's postemployment healthcare benefits. SCHEDULE OF FUNDING PROGRESS Valuation Date Actuarial Asset Value Actuarial Accrued Liability (AAL) Unfunded Liability (Excess Assets)Funded Ratio Annual Covered Payroll UAAL as a % of Covered Payroll 6/30/2014 -$ 145,177$ 145,177$ 0.0%802,548$ 18.1% 6/30/2015 -$ 143,019$ 143,019$ 0.0%921,329$ 15.5% 6/30/2016 -$ 152,794$ 152,794$ 0.0%1,104,621$ 13.8% 97 Item Number: C-1 Date: 01/24/17 Attachment: 1 133 of 210 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, 2016 6/30/2016 6/30/2015 Measurement Date 6/30/2015 6/30/2014 City's proportion of the net pension liability 0.278260%0.260250% City's proportionate share of the net pension liability 19,099,492$ 16,193,941$ City's covered - employee payroll **8,348,164$ 8,181,272$ 228.79%197.94% 31,771,271,402$ 30,829,966,631$ 24,907,305,871$ 24,607,502,515$ Plan's fiduciary net position as a percentage of the plan's total pension liability 78.40%79.82% * Fiscal year 2015 was the first year of implementation, therefore, only two years are shown ** For the year ending on the measurement date City's proportionate share of the net pension liability as percentage of covered- employee payroll Fiscal Year End Plan's total pension liability Plan's fiduciary net position 98 Item Number: C-1 Date: 01/24/17 Attachment: 1 134 of 210 CITY OF ATASCADERO SCHEDULE OF PENSION CONTRIBUTIONS Cost-Sharing Multiple-Employer Defined Pension Plan - Last 10 Years* As of June 30, 2016 Contributions for the fiscal year ending:6/30/2016 6/30/2015 Contractually required contribution (actuarially determined)2,255,947$ 2,227,093$ Contributions in relation to the actuarially determined contributions (2,255,947) (2,227,093) Contribution deficiency (excess)-$ -$ Covered-employee payroll **8,658,607$ 8,348,164$ Contributions as a percentage of covered-employee payroll 26.05%26.68% Notes to Schedule Valuation Date 06/30/14 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age Asset valuation method 5-year smoothed market Amortization method Level percentage of payroll, closed Discount rate 7.50% Price inflation 2.75% Salary increases Varies by entry age and service Investement rate of return Mortality Post retirement benefit Valuation Date 06/30/15 Discount rate 7.65% * Fiscal year 2015 was the first year of implementation, therefore, only two years are shown ** For the year ending on the measurement date Derived using CalPERS' Membership data for all funds Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter 7.50% Net of Pension Plan Investment and Administrative Expenses; includes inflation 99 Item Number: C-1 Date: 01/24/17 Attachment: 1 135 of 210 OTHER SUPPLEMENTARY INFORMATION Item Number: C-1 Date: 01/24/17 Attachment: 1 136 of 210 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, 2016 Original Final Actual Amounts Revenues: Interest income- cash & investments 5,000$ 5,000$ 9,708$ 4,708$ 754,450 754,450 754,438 (12) 2,130 4,630 4,526 (104) Total revenues 761,580 764,080 768,672 4,592 Expenditures: Contract Services 2,130 4,630 4,525 105 Principal 215,000 215,000 215,000 - Interest 754,450 754,450 754,450 - Total expenditures 971,580 974,080 973,975 105 Net change in fund balance (210,000)$ (210,000)$ (205,303) 4,697$ Fund balance, June 30, 2015 17,210,139 Fund balance, June 30, 2016 17,004,836$ Budget Variance with Final Budget Positive (Negative) Interest income- 2010 reimbursement agreement with the Successor Agency to the RDA Other 2010 Lease Revenue from Successor Agency 100 Item Number: C-1 Date: 01/24/17 Attachment: 1 137 of 210 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. 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. 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. 101 Item Number: C-1 Date: 01/24/17 Attachment: 1 138 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) 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. 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. 102 Item Number: C-1 Date: 01/24/17 Attachment: 1 139 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) Public Facilities Fees Fund The City currently has existing community use facilities,such as the Lake Pavilion and the Youth 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 & lighting related improvements in the development. 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. 103 Item Number: C-1 Date: 01/24/17 Attachment: 1 140 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) AND CAPITAL PROJECTS FUNDS 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. Historic City Hall Rehabilitation Fund The Historic City Hall Building sustained severe damage as a result of the San Simeon Earthquake on December 22,2003.This fund is used to track all the costs and reimbursements related to the rehabilitation of the building.The building was re-opened to the public in August 2013 and the project is now complete.The fund was closed in fiscal year 2015-2016. Youth Center Construction Fund This fund accounts for funds received for and expended on the construction of the new Colony Park Community Center. 104 Item Number: C-1 Date: 01/24/17 Attachment: 1 141 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) DEBT SERVICE FUNDS The City has established the debt service funds to account for the payment and accumulation of resources related to long-term debt principal and interest for the following debt issues: Assessment District #4 Debt Service Fund This fund is used to account for fees assessed in Assessment District #4,and the related debt service payments.This assessment district was established in 1986 in order to construct sewer improvements in the area known as Separado/Cayucos.The final payment on the debt service was made and there were remaining funds. The remaining funds were refunded to elgiible property owners. The fund was closed in fiscal year 2015-2016. 1992 Street Assessment Improvement Fund This fund is used to account for fees assessed in the 1992 Street Improvement Assessment District and the related debt service payments.This assessment district was formed in 1992 in order to construct street improvements in two non-contiguous sections of the City:the Las Encinas area and the 3F Meadows area. In accordance with the original bond agreement, the District called $180,000 in aggregate principal bonds on September 2, 1995. 105 Item Number: C-1 Date: 01/24/17 Attachment: 1 142 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET June 30, 2016 Supplemental Law Enforcement Services Fund Atascadero Tourism Business Improvement District Fund Community Development Block Grant Fund Tree Plant Fund Gas Tax Fund Local Transportation Fund ASSETS Cash and investments 79,385$ 291,140$ -$ 157,379$ 215,606$ 3,290,721$ Receivables: Federal distributions due - - 11,074 - - 31,040 Due from State of California - - - - - - Due from County of San Luis Obispo - - - - - - Accrued interest 147 - - 280 334 5,643 Other receivables - 68,128 363 - - - Due from other funds - - - - - - Prepaid items - - - - 730 - Notes receivable - - - 120,000 - - Total assets 79,532$ 359,268$ 11,437$ 277,659$ 216,670$ 3,327,404$ LIABILITIES AND FUND BALANCES Accounts payable 13,022$ 29,419$ -$ 12,451$ 71,022$ 8,760$ Accrued salaries and benefits 692 - - - 9,094 - Due to other funds - - 11,437 - - - Unearned revenue 64,071 - - - - - Total liabilities 77,785 29,419 11,437 12,451 80,116 8,760 Fund Balances: Nonspendable - - - - 730 - Restricted 1,747 329,849 - 265,208 135,824 3,318,644 Assigned for road projects - - - - - - Total fund balances 1,747 329,849 - 265,208 136,554 3,318,644 Total liabilities and fund balances 79,532$ 359,268$ 11,437$ 277,659$ 216,670$ 3,327,404$ Special Revenue Funds 106 Item Number: C-1 Date: 01/24/17 Attachment: 1 143 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2016 Special Revenue Funds Street Assessment Fund General Government Facilities Fees Fund Storm Drainage Facilities Fees Fund Law Enforcement Facilities Fees Fund Fire Facilities Fees Fund Open Space Acquisition Fees Fund ASSETS Cash and investments 69,448$ 22,956$ 522,397$ 145,325$ 101,169$ 861,339$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo 11 - - - - - Accrued interest 123 37 925 186 167 1,536 Other receivables - - - - 315 - Due from other funds - - - - 844,863 - Prepaid items - - - - - - Notes receivable - - - - - - Total assets 69,582$ 22,993$ 523,322$ 145,511$ 946,514$ 862,875$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ -$ -$ 25$ 14,221$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - - - - - - Total liabilities - - - - 25 14,221 Fund Balances: Nonspendable - - - - - - Restricted 69,582 22,993 523,322 145,511 946,489 848,654 Assigned for road projects - - - - - - Total fund balances 69,582 22,993 523,322 145,511 946,489 848,654 Total liabilities and fund balances 69,582$ 22,993$ 523,322$ 145,511$ 946,514$ 862,875$ 107 Item Number: C-1 Date: 01/24/17 Attachment: 1 144 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2016 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 Apple Valley Landscape & Lighting Assessment District Fund ASSETS Cash and investments 1,456,988$ 586,145$ 111,611$ 223,897$ 359,346$ 185,288$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo - - - 3,900 502 952 Accrued interest 2,574 1,039 197 328 630 319 Other receivables - - - - - - Due from other funds - - - - - - Prepaid items - - - - - - Notes receivable - - - - - - Total assets 1,459,562$ 587,184$ 111,808$ 228,125$ 360,478$ 186,559$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ -$ -$ 247$ 5,497$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - - - - - 75,000 Total liabilities - - - - 247 80,497 Fund Balances: Nonspendable - - - - - - Restricted 1,459,562 587,184 111,808 228,125 360,231 106,062 Assigned for road projects - - - - - - Total fund balances 1,459,562 587,184 111,808 228,125 360,231 106,062 Total liabilities and fund balances 1,459,562$ 587,184$ 111,808$ 228,125$ 360,478$ 186,559$ Special Revenue Funds 108 Item Number: C-1 Date: 01/24/17 Attachment: 1 145 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2016 Las Lomas Street & Storm Drain Assessment District Fund Las Lomas Landscape & Lighting Assessment District Fund De Anza Street & Storm Drain Assessment District Fund De Anza Landscape & Lighting Assessment District Fund Capital Projects Fund 2010 Bond Proceeds Master Agreement Fund ASSETS Cash and investments 277,592$ 182,510$ 348,497$ 120,511$ 274,823$ 2,607,280$ Receivables: Federal distributions due - - - - 55,868 - Due from State of California - - - - 1,730 - Due from County of San Luis Obispo 599 2,294 361 158 123,203 - Accrued interest 490 321 610 212 751 4,637 Other receivables - - - - - - Due from other funds - - - - - - Prepaid items - - - - - - Notes receivable - - - - - - Total assets 278,681$ 185,125$ 349,468$ 120,881$ 456,375$ 2,611,917$ LIABILITIES AND FUND BALANCES Accounts payable 247$ 5,007$ 247$ 910$ 31,809$ 8,658$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - - - - - - Total liabilities 247 5,007 247 910 31,809 8,658 Fund Balances: Nonspendable - - - - - - Restricted 278,434 180,118 349,221 119,971 113,195 2,603,259 Assigned for road projects - - - - 311,371 - Total fund balances 278,434 180,118 349,221 119,971 424,566 2,603,259 Total liabilities and fund balances 278,681$ 185,125$ 349,468$ 120,881$ 456,375$ 2,611,917$ Special Revenue Funds Capital Projects Funds 109 Item Number: C-1 Date: 01/24/17 Attachment: 1 146 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2016 Historic City Hall Rehabilitation Fund Youth Center Construction Fund Assessment District #4 Debt Service Fund 1992 Street Assessment Improvement Fund TOTALS ASSETS Cash and investments -$ -$ -$ 174,965$ 12,666,318$ Receivables: Federal distributions due - 304,316 - - 402,298 Due from State of California - 101,439 - - 103,169 Due from County of San Luis Obispo - - - - 131,980 Accrued interest - - - 311 21,797 Other receivables - - - - 68,806 Due from other funds - - - - 844,863 Prepaid items - - - - 730 Notes receivable - - - - 120,000 Total assets -$ 405,755$ -$ 175,276$ 14,359,961$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ -$ -$ 201,542$ Accrued salaries and benefits - - - - 9,786 Due to other funds - 397,879 - - 409,316 Unearned revenue - 5,177 - - 144,248 Total liabilities - 403,056 - - 764,892 Fund Balances: Nonspendable - - - - 730 Restricted - 2,699 - 175,276 13,282,968 Assigned for road projects - - - - 311,371 Total fund balances - 2,699 - 175,276 13,595,069 Total liabilities and fund balances -$ 405,755$ -$ 175,276$ 14,359,961$ Capital Projects Funds Debt Service Funds 110 Item Number: C-1 Date: 01/24/17 Attachment: 1 147 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For Fiscal Year Ended June 30, 2016 Supplemental Law Enforcement Services Fund Atascadero Tourism Business Improvement District Fund Community Development Block Grant Fund Tree Plant Fund Gas Tax Fund Local Transportation Fund Revenues: Taxes and assessments -$ 241,078$ -$ -$ -$ -$ Licenses and permits - - - 27,933 - - Intergovernmental revenues 82,959 - 15,431 - 662,270 715,688 Use of money and property 1,312 5,458 - 2,839 3,815 55,498 Other revenues - - - - 385 - Total revenues 84,271 246,536 15,431 30,772 666,470 771,186 Expenditures: Salaries and benefits 34,801 - - - 361,017 - Supplies and services 44,331 206,020 6,607 36,155 526,861 - Special projects and studies 466 - 8,000 8,400 1,017 22 Capital outlay 3,361 - 824 - - 44,150 Total expenditures 82,959 206,020 15,431 44,555 888,895 44,172 Excess of revenues over (under) expenditures 1,312 40,516 - (13,783) (222,425) 727,014 Other Financing Sources (Uses): Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 1,312 40,516 - (13,783) (222,425) 727,014 Fund balance, June 30, 2015 435 289,333 - 278,991 358,979 2,591,630 Fund balance, June 30, 2016 1,747$ 329,849$ -$ 265,208$ 136,554$ 3,318,644$ Special Revenue Funds 111 Item Number: C-1 Date: 01/24/17 Attachment: 1 148 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2016 Street Assessment Fund General Government Facilities Fees Fund Storm Drainage Facilities Fees Fund Law Enforcement Facilities Fees Fund Fire Facilities Fees Fund Open Space Acquisition Fees Fund Revenues: Taxes and assessments 2,160$ -$ -$ -$ -$ -$ Licenses and permits - 150,835 59,319 102,918 71,445 112,802 Intergovernmental revenues - - - - - - Use of money and property 1,212 41 9,113 2,014 12,250 14,845 Other revenues - - - - - - Total revenues 3,372 150,876 68,432 104,932 83,695 127,647 Expenditures: Salaries and benefits - - - - - - Supplies and services - - - - - - Special projects and studies - - 3,600 - 12,370 - Capital outlay - - 19,662 - - 26,853 Total expenditures - - 23,262 - 12,370 26,853 Excess of revenues over (under) expenditures 3,372 150,876 45,170 104,932 71,325 100,794 Other Financing Sources (Uses): Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 3,372 150,876 45,170 104,932 71,325 100,794 Fund balance, June 30, 2015 66,210 (127,883) 478,152 40,579 875,164 747,860 Fund balance, June 30, 2016 69,582$ 22,993$ 523,322$ 145,511$ 946,489$ 848,654$ Special Revenue Funds 112 Item Number: C-1 Date: 01/24/17 Attachment: 1 149 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2016 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 Apple Valley Landscape & Lighting Assessment District Fund Revenues: Taxes and assessments -$ -$ -$ 504,785$ 35,000$ 66,500$ Licenses and permits 341,341 85,462 38,396 - - - Intergovernmental revenues - - - - - - Use of money and property 24,460 10,031 1,835 2,834 6,181 3,101 Other revenues - - - - - - Total revenues 365,801 95,493 40,231 507,619 41,181 69,601 Expenditures: Salaries and benefits - - - - - - Supplies and services - - - 5,019 4,587 52,343 Special projects and studies - - - - - - Capital outlay - 1,927 - - - - Total expenditures - 1,927 - 5,019 4,587 52,343 Excess of revenues over (under) expenditures 365,801 93,566 40,231 502,600 36,594 17,258 Other Financing Sources (Uses): Transfers in - - - - - - Transfers out - - - (391,090) - - Total other financing sources (uses)- - - (391,090) - - Net change in fund balances 365,801 93,566 40,231 111,510 36,594 17,258 Fund balance, June 30, 2015 1,093,761 493,618 71,577 116,615 323,637 88,804 Fund balance, June 30, 2016 1,459,562$ 587,184$ 111,808$ 228,125$ 360,231$ 106,062$ Special Revenue Funds 113 Item Number: C-1 Date: 01/24/17 Attachment: 1 150 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2016 Las Lomas Street & Storm Drain Assessment District Fund Las Lomas Landscape & Lighting Assessment District Fund De Anza Street & Storm Drain Assessment District Fund De Anza Landscape & Lighting Assessment District Fund Capital Projects Fund 2010 Bond Proceeds Master Agreement Fund Revenues: Taxes and assessments 12,051$ 46,350$ 40,090$ 15,875$ -$ -$ Licenses and permits - - - - - - Intergovernmental revenues - - - - 246,516 - Use of money and property 4,843 3,159 5,976 2,102 6,818 44,991 Other revenues - - - - - - Total revenues 16,894 49,509 46,066 17,977 253,334 44,991 Expenditures: Salaries and benefits - - - - - - Supplies and services 5,164 52,911 4,538 18,971 - - Special projects and studies - - - - 158,378 - Capital outlay - - - - 346,494 21,910 Total expenditures 5,164 52,911 4,538 18,971 504,872 21,910 Excess of revenues over (under) expenditures 11,730 (3,402) 41,528 (994) (251,538) 23,081 Other Financing Sources (Uses): Transfers in - - - 1,400 - 172,619 Transfers out - - - - - - Total other financing sources (uses)- - - 1,400 - 172,619 Net change in fund balances 11,730 (3,402) 41,528 406 (251,538) 195,700 Fund balance, June 30, 2015 266,704 183,520 307,693 119,565 676,104 2,407,559 Fund balance, June 30, 2016 278,434$ 180,118$ 349,221$ 119,971$ 424,566$ 2,603,259$ Special Revenue Funds Capital Projects Funds 114 Item Number: C-1 Date: 01/24/17 Attachment: 1 151 of 210 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2016 Historic City Hall Rehabilitation Fund Youth Center Construction Fund Assessment District #4 Debt Service Fund 1992 Street Assessment Improvement Fund TOTALS Revenues: Taxes and assessments -$ -$ (43,429)$ -$ 920,460$ Licenses and permits - - - - 990,451 Intergovernmental revenues 145,820 - - - 1,868,684 Use of money and property 546 (842) 270 3,077 227,779 Other revenues - - - - 385 Total revenues 146,366 (842) (43,159) 3,077 4,007,759 Expenditures: Salaries and benefits - - - - 395,818 Supplies and services - - 7,770 - 971,277 Special projects and studies - - - - 192,253 Capital outlay 5,483 - - - 470,664 Total expenditures 5,483 - 7,770 - 2,030,012 Excess of revenues over (under) expenditures 140,883 (842) (50,929) 3,077 1,977,747 Other Financing Sources (Uses): Transfers in - - - - 174,019 Transfers out (172,619) - - - (563,709) Total other financing sources (uses)(172,619) - - - (389,690) Net change in fund balances (31,736) (842) (50,929) 3,077 1,588,057 Fund balance, June 30, 2015 31,736 3,541 50,929 172,199 12,007,012 Fund balance, June 30, 2016 -$ 2,699$ -$ 175,276$ 13,595,069$ Capital Projects Funds Debt Service Funds 115 Item Number: C-1 Date: 01/24/17 Attachment: 1 152 of 210 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, 2016 Original Final Actual Amounts Revenues: S.L.E.S.F. Grant 60,830$ 136,260$ 82,959$ (53,301)$ Interest income - - 1,312 1,312 Total revenues 60,830 136,260 84,271 (51,989) Expenditures: Employee services 11,760 55,680 34,801 20,879 Computer maintenance & replacement - 340 335 5 Communications - 10,000 5,240 4,760 Operating supplies 22,070 33,680 22,169 11,511 Contract services - 7,630 7,619 11 Professional development 5,000 8,970 8,968 2 Special projects and purchases: Video surveillance equipment - 470 466 4 Radio Replacement 22,000 2,270 - 2,270 Capital outlay: Tablet computers - 3,370 3,361 9 - 13,850 - 13,850 Total expenditures 60,830 136,260 82,959 53,301 Net change in fund balance -$ -$ 1,312 1,312$ Fund balance, June 30, 2015 435 Fund balance, June 30, 2016 1,747$ Cash Contribution to Vehicle and Equipment Replacement Fund for Vehicle Purchase Budget Variance with Final Budget Positive (Negative) 116 Item Number: C-1 Date: 01/24/17 Attachment: 1 153 of 210 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, 2016 Original Final Actual Amounts Revenues: Tourism assessments 183,030$ 183,030$ 241,078$ 58,048$ Interest income 2,690 2,690 5,458 2,768 Total revenues 185,720 185,720 246,536 60,816 Expenditures: Office expense 2,000 5,170 5,164 6 Advertising 85,000 86,920 86,914 6 Operating Supplies - 1,220 1,217 3 Contract services 155,000 143,100 105,314 37,786 Business Development - 5,000 5,000 - Administration 1,830 2,420 2,411 9 Total expenditures 243,830 243,830 206,020 37,810 Net change in fund balance (58,110)$ (58,110)$ 40,516 98,626$ Fund balance, June 30, 2015 289,333 Fund balance, June 30, 2016 329,849$ Budget Variance with Final Budget Positive (Negative) 117 Item Number: C-1 Date: 01/24/17 Attachment: 1 154 of 210 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, 2016 Original Final Actual Amounts Revenues: Community Development Block Grant 422,900$ 414,050$ 15,431$ (398,619)$ Total revenues 422,900 414,050 15,431 (398,619) Expenditures: Administration: CDBG general administration 33,040 38,030 6,607 31,423 Special projects and studies: El Camino Homeless Organization 7,120 16,740 - 16,740 R.I.S.E. of San Luis Obispo County 22,630 990 - 990 Loaves & Fishes Groceries 8,000 8,000 - 8,000 Youth Scholarships 8,000 8,000 8,000 - Capital outlay: Lake Park Walkway Barrier Removal 144,300 142,480 - 142,480 Barrier Removal Phase VIII - South ECR - 830 824 6 Miscellaneous Barrier Removal 199,810 198,980 - 198,980 Total expenditures 422,900 414,050 15,431 398,619 Net change in fund balance -$ -$ - -$ Fund balance, June 30, 2015 - Fund balance, June 30, 2016 -$ Budget Variance with Final Budget Positive (Negative) 118 Item Number: C-1 Date: 01/24/17 Attachment: 1 155 of 210 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, 2016 Original Final Actual Amounts Revenues: Permits and fees 3,200$ 3,200$ 27,933$ 24,733$ Interest income 2,320 2,320 2,839 519 Total revenues 5,520 5,520 30,772 25,252 Expenditures: Office expense 620 620 - 620 Utilities 400 400 - 400 Operating Supplies 500 500 51 449 Contract services 50,000 50,000 26,894 23,106 Administrative charges 9,210 9,210 9,210 - Special projects Native Tree Replanting 25,000 25,000 8,400 16,600 Total expenditures 85,730 85,730 44,555 41,175 Net change in fund balance (80,210)$ (80,210)$ (13,783) 66,427$ Fund balance, June 30, 2015 278,991 Fund balance, June 30, 2016 265,208$ Budget Variance with Final Budget Positive (Negative) 119 Item Number: C-1 Date: 01/24/17 Attachment: 1 156 of 210 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, 2016 Original Final Actual Amounts Revenues: Section 2103 highway users tax 129,890$ 142,280$ 149,840$ 7,560$ Section 2105 highway users tax 163,830 163,830 163,769 (61) Section 2106 highway users tax 89,260 89,260 129,411 40,151 Section 2107 highway users tax 223,980 223,980 213,250 (10,730) Section 2107.5 highway users tax 6,000 6,000 6,000 - Interest income 2,140 2,140 3,815 1,675 Other revenues - - 385 385 Total revenues 615,100 627,490 666,470 38,980 Expenditures: Salaries and benefits 370,430 361,150 361,017 133 Computer maintenance & replacement 4,010 4,010 4,010 - Insurance 10,250 9,260 9,252 8 Utilities 69,000 107,070 107,067 3 Communications 1,750 1,240 1,232 8 Operating supplies and equipment 40,000 37,150 37,142 8 Vehicle and equipment operations 54,210 38,360 38,353 7 Contract services 123,650 127,860 127,854 6 Professional development 3,100 1,670 1,661 9 Department Service Allocation 111,620 111,620 111,620 - Administrative charges 88,670 88,670 88,670 - Special projects: Replace Radios - 1,020 1,017 3 Traffic Signal Controller 4,000 4,000 - 4,000 Total expenditures 880,690 893,080 888,895 4,185 Net change in fund balance (265,590)$ (265,590)$ (222,425) 43,165$ Fund balance, June 30, 2015 358,979 Fund balance, June 30, 2016 136,554$ Budget Variance with Final Budget Positive (Negative) 120 Item Number: C-1 Date: 01/24/17 Attachment: 1 157 of 210 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, 2016 Original Final Actual Amounts Revenues: Local Transportation Tax- Article 3 Bike Paths 22,060$ 22,060$ 22,065$ 5$ Local Transportation Tax- Article 8 Streets 569,480 569,480 656,250 86,770 HBRR Grant - Via Avenue Bridge 176,060 176,060 17,742 (158,318) HBRR Grant - Santa Lucia Bridge 200,000 200,000 19,631 (180,369) USHA Grants- El Camino Real Pavement Rehabilitation 338,000 338,000 - (338,000) Interest income 24,140 24,140 55,498 31,358 Total revenues 1,329,740 1,329,740 771,186 (558,554) Expenditures: Special projects: Minor Bridge Repair 8,090 8,090 22 8,068 Roadway Traffic Safety Improvements 50,000 50,000 - 50,000 Capital outlay: East Front Overlay 34,930 34,930 - 34,930 Santa Barbara Road West Overlay Project 18,160 18,160 1,675 16,485 San Anselmo CIR Rehabilitation Project 440,380 440,380 1,010 439,370 San Lucas Road Landslide Repair 89,630 89,630 - 89,630 El Camino Real CIR Rehabilitation Project 702,150 702,150 1,794 700,356 Via Avenue Bridge Project 198,940 198,940 20,040 178,900 Santa Lucia Bridge Project 200,000 200,000 19,631 180,369 Total expenditures 1,742,280 1,742,280 44,172 1,698,108 Excess of revenues over (under) expenditures (412,540) (412,540) 727,014 1,139,554 Other Financing Sources (Uses): (11,450) (11,450) - 11,450 Total other financing sources (uses)(11,450) (11,450) - 11,450 Net change in fund balance (423,990)$ (423,990)$ 727,014 1,151,004$ Fund balance, June 30, 2015 2,591,630 Fund balance, June 30, 2016 3,318,644$ Budget Variance with Final Budget Positive (Negative) Transfer to Capital Projects Fund for the Atascadero Creek Trail Enhancement Project 121 Item Number: C-1 Date: 01/24/17 Attachment: 1 158 of 210 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, 2016 Original Final Actual Amounts Revenues: Taxes and special assessments- Lobos Lane 280$ 280$ 280$ -$ Taxes and special assessments- Sonora / Pinal 360 360 380 20 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 430 430 1,212 782 Total revenues 2,570 2,570 3,372 802 Expenditures: Special projects and studies: Street maintenance projects 50,000 50,000 - 50,000 Total expenditures 50,000 50,000 - 50,000 Net change in fund balance (47,430)$ (47,430)$ 3,372 50,802$ Fund balance, June 30, 2015 66,210 Fund balance, June 30, 2016 69,582$ Budget Variance with Final Budget Positive (Negative) 122 Item Number: C-1 Date: 01/24/17 Attachment: 1 159 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 114,960$ 114,960$ 150,835$ 35,875$ Interest income (expense)(740) (740) 41 781 Total revenues 114,220 114,220 150,876 36,656 Net change in fund balance 114,220$ 114,220$ 150,876 36,656$ Fund balance, June 30, 2015 (127,883) Fund balance, June 30, 2016 22,993$ Variance with Final Budget Positive (Negative) Budget 123 Item Number: C-1 Date: 01/24/17 Attachment: 1 160 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 73,320$ 73,320$ 59,319$ (14,001)$ Interest income 4,120 4,120 9,113 4,993 Total revenues 77,440 77,440 68,432 (9,008) Expenditures: Special projects: Culvert Drainline Project 3,600 3,600 3,600 - Capital projects: Culvert Replacement & Inlet Improvement Program 16,400 16,400 19,662 (3,262) El Camino Real Culvert Relining 150,000 150,000 - 150,000 Total expenditures 170,000 170,000 23,262 146,738 Net change in fund balance (92,560)$ (92,560)$ 45,170 137,730$ Fund balance, June 30, 2015 478,152 Fund balance, June 30, 2016 523,322$ Budget Variance with Final Budget Positive (Negative) 124 Item Number: C-1 Date: 01/24/17 Attachment: 1 161 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 58,880$ 58,880$ 102,918$ 44,038$ Interest income 490 490 2,014 1,524 Total revenues 59,370 59,370 104,932 45,562 Net change in fund balance 59,370$ 59,370$ 104,932 45,562$ Fund balance, June 30, 2015 40,579 Fund balance, June 30, 2016 145,511$ Budget Variance with Final Budget Positive (Negative) 125 Item Number: C-1 Date: 01/24/17 Attachment: 1 162 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 94,570$ 94,570$ 71,445$ (23,125)$ Rental income 10,800 10,800 10,800 - Interest income 470 470 1,450 980 Total revenues 105,840 105,840 83,695 (22,145) Expenditures: Special projects and studies: Personal Protective Equipment 14,520 14,520 12,370 2,150 Total expenditures 14,520 14,520 12,370 2,150 Net change in fund balance 91,320$ 91,320$ 71,325 (19,995)$ Fund balance, June 30, 2015 875,164 Fund balance, June 30, 2016 946,489$ Variance with Final Budget Positive (Negative) Budget 126 Item Number: C-1 Date: 01/24/17 Attachment: 1 163 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 165,650$ 165,650$ 112,802$ (52,848)$ Donation for Three Bridges Trailhead 58,000 58,000 - (58,000) Interest income 6,880 6,880 14,845 7,965 Total revenues 230,530 230,530 127,647 (102,883) Expenditures: Capital Projects ALPS Three Bridges Trailhead and Parking Lot 305,740 305,740 26,853 278,887 Total expenditures 305,740 305,740 26,853 278,887 Net change in fund balance (75,210)$ (75,210)$ 100,794 176,004$ Fund balance, June 30, 2015 747,860 Fund balance, June 30, 2016 848,654$ Variance with Final Budget Positive (Negative) Budget 127 Item Number: C-1 Date: 01/24/17 Attachment: 1 164 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 469,100$ 469,100$ 341,341$ (127,759)$ Interest income 9,210 9,210 24,460 15,250 Total revenues 478,310 478,310 365,801 (112,509) Expenditures: Capital Projects Atascadero Lake Pipeline Repair 200,000 200,000 - 200,000 Total expenditures 200,000 200,000 - 200,000 Excess of revenues over (under) expenditures 278,310 278,310 365,801 87,491 Other Financing Sources (Uses): (460,000) (460,000) - 460,000 Total other financing sources (uses)(460,000) (460,000) - 460,000 Net change in fund balance (181,690)$ (181,690)$ 365,801 547,491$ Fund balance, June 30, 2015 1,093,761 Fund balance, June 30, 2016 1,459,562$ Budget Variance with Final Budget Positive (Negative) Transfer to 2010 Bond Proceeds Master Agreement Fund for Centennial Bridge & Plaza Project 128 Item Number: C-1 Date: 01/24/17 Attachment: 1 165 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 106,480$ 106,480$ 85,462$ (21,018)$ Interest income 4,580 4,580 10,031 5,451 Total revenues 111,060 111,060 95,493 (15,567) Expenditures: Capital projects: Zoo Garden Event Center 90,000 90,000 1,927 88,073 Total expenditures 90,000 90,000 1,927 88,073 Net change in fund balance 21,060$ 21,060$ 93,566 72,506$ Fund balance, June 30, 2015 493,618 Fund balance, June 30, 2016 587,184$ Variance with Final Budget Positive (Negative) Budget 129 Item Number: C-1 Date: 01/24/17 Attachment: 1 166 of 210 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, 2016 Original Final Actual Amounts Revenues: Impact fees 53,610$ 53,610$ 38,396$ (15,214)$ Interest income 600 600 1,835 1,235 Total revenues 54,210 54,210 40,231 (13,979) Expenditures: Capital projects: Library Expansion Contribution 60,000 60,000 - 60,000 Total expenditures 60,000 60,000 - 60,000 Net change in fund balance (5,790)$ (5,790)$ 40,231 46,021$ Fund balance, June 30, 2015 71,577 Fund balance, June 30, 2016 111,808$ Budget Variance with Final Budget Positive (Negative) 130 Item Number: C-1 Date: 01/24/17 Attachment: 1 167 of 210 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 443,130$ 443,130$ 504,785$ 61,655$ Interest income 1,330 1,330 2,834 1,504 Total revenues 444,460 444,460 507,619 63,159 Expenditures: Contract services 5,500 5,500 5,019 481 Total expenditures 5,500 5,500 5,019 481 Excess of revenues over (under) expenditures 438,960 438,960 502,600 63,640 Other Financing Sources (Uses): (391,090) (391,090) (391,090) - Total other financing sources (uses)(391,090) (391,090) (391,090) - Net change in fund balance 47,870$ 47,870$ 111,510 63,640$ Fund balance, June 30, 2015 116,615 Fund balance, June 30, 2016 228,125$ For the Fiscal Year Ended June 30, 2016 Budget Variance with Final Budget Positive (Negative) Transfer to the General Fund for police, fire and parks services 131 Item Number: C-1 Date: 01/24/17 Attachment: 1 168 of 210 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 35,000$ 35,000$ 35,000$ -$ Interest income 3,380 3,380 6,181 2,801 Total revenues 38,380 38,380 41,181 2,801 Expenditures: Advertising 800 800 247 553 Contract services 6,800 6,730 2,880 3,850 Administration 1,400 1,470 1,460 10 Total expenditures 9,000 9,000 4,587 4,413 Net change in fund balance 29,380$ 29,380$ 36,594 7,214$ Fund balance, June 30, 2015 323,637 Fund balance, June 30, 2016 360,231$ Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2016 Budget 132 Item Number: C-1 Date: 01/24/17 Attachment: 1 169 of 210 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 66,500$ 66,500$ 66,500$ -$ Interest income 690 690 3,101 2,411 Total revenues 67,190 67,190 69,601 2,411 Expenditures: Advertising 700 700 93 607 Utilities 15,720 15,720 5,031 10,689 Operating supplies 900 900 - 900 Contract services 57,300 57,300 45,638 11,662 Administration 2,120 2,120 1,581 539 Total expenditures 76,740 76,740 52,343 24,397 Net change in fund balance (9,550)$ (9,550)$ 17,258 26,808$ Fund balance, June 30, 2015 88,804 Fund balance, June 30, 2016 106,062$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2016 133 Item Number: C-1 Date: 01/24/17 Attachment: 1 170 of 210 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 12,050$ 12,050$ 12,051$ 1$ Interest income 2,600 2,600 4,843 2,243 Total revenues 14,650 14,650 16,894 2,244 Expenditures: Advertising 800 800 247 553 Contract services 29,970 29,460 3,193 26,267 Administration 1,220 1,730 1,724 6 Total expenditures 31,990 31,990 5,164 26,826 Net change in fund balance (17,340)$ (17,340)$ 11,730 29,070$ Fund balance, June 30, 2015 266,704 Fund balance, June 30, 2016 278,434$ For the Fiscal Year Ended June 30, 2016 Budget Variance with Final Budget Positive (Negative) 134 Item Number: C-1 Date: 01/24/17 Attachment: 1 171 of 210 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 46,350$ 46,350$ 46,350$ -$ Interest income 1,430 1,430 3,159 1,729 Total revenues 47,780 47,780 49,509 1,729 Expenditures: Advertising 700 700 93 607 Utilities 5,060 5,060 4,358 702 Operating supplies 6,900 6,900 - 6,900 Contract services 69,720 68,650 46,138 22,512 Administration 1,260 2,330 2,322 8 Special projects: Planting and landscape project 10,000 10,000 - 10,000 Total expenditures 93,640 93,640 52,911 40,729 Net change in fund balance (45,860)$ (45,860)$ (3,402) 42,458$ Fund balance, June 30, 2015 183,520 Fund balance, June 30, 2016 180,118$ Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2016 Budget 135 Item Number: C-1 Date: 01/24/17 Attachment: 1 172 of 210 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 40,090$ 40,090$ 40,090$ -$ Interest income 3,120 3,120 5,976 2,856 Total revenues 43,210 43,210 46,066 2,856 Expenditures: Advertising 900 900 247 653 Contract services 8,970 8,970 2,880 6,090 Administration 1,600 1,600 1,411 189 Special projects: Minor Road Repair Projects 15,000 15,000 - 15,000 Total expenditures 26,470 26,470 4,538 21,932 Net change in fund balance 16,740$ 16,740$ 41,528 24,788$ Fund balance, June 30, 2015 307,693 Fund balance, June 30, 2016 349,221$ For the Fiscal Year Ended June 30, 2016 Budget Variance with Final Budget Positive (Negative) 136 Item Number: C-1 Date: 01/24/17 Attachment: 1 173 of 210 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$ 15,875$ (5)$ Interest income 1,120 1,120 2,102 982 Total revenues 17,000 17,000 17,977 977 Expenditures: Advertising 700 700 93 607 Utilities 500 500 308 192 Operating supplies 800 800 - 800 Contract services 19,120 19,120 16,789 2,331 Administration 1,880 1,880 1,781 99 Special projects: Landscape Improvements 10,000 10,000 - 10,000 Total expenditures 33,000 33,000 18,971 14,029 Excess of revenues over (under) expenditures (16,000) (16,000) (994) 15,006 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 (14,600)$ (14,600)$ 406 15,006$ Fund balance, June 30, 2015 119,565 Fund balance, June 30, 2016 119,971$ Transfer from the General Fund for open space maintenance For the Fiscal Year Ended June 30, 2016 Budget Variance with Final Budget Positive (Negative) 137 Item Number: C-1 Date: 01/24/17 Attachment: 1 174 of 210 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, 2016 Original Final Actual Amounts Revenues: Proposition 1B Funding- Lake View Overlay 62,260$ 62,260$ 62,255$ (5)$ STP - RSHA Grant - Route 41 Corridor Study 162,110 162,110 158,378 (3,732) STIP Grant- Highway 41 Multipurpose Pathway 495,760 495,760 25,883 (469,877) State River Parkways Grant- Creek Trail Project 418,560 418,560 - (418,560) Interest income 5,040 5,040 6,818 1,778 Total revenues 1,143,730 1,143,730 253,334 (890,396) Expenditures: Special projects and purchases: Annual Crack Fill Program 41,000 41,000 - 41,000 Route 41 Corridor Study 162,110 162,110 158,378 3,732 Capital outlay: Lake View Overlay Project 397,080 397,080 318,811 78,269 Highway 41 Multipurpose Pathway Project 487,400 487,400 27,683 459,717 Atascadero Creek Trail Enhancement Project 430,010 430,010 - 430,010 Total expenditures 1,517,600 1,517,600 504,872 1,012,728 Excess of revenues over (under) expenditures (373,870) (373,870) (251,538) 122,332 Other Financing Sources: 11,450 11,450 - (11,450) Total other financing sources (uses)11,450 11,450 - (11,450) Net change in fund balance (362,420)$ (362,420)$ (251,538) 110,882$ Fund balance, June 30, 2015 676,104 Fund balance, June 30, 2016 424,566$ Variance with Final Budget Positive (Negative) Budget Transfer from the Local Transportation Fund for the Atascadero Creek Trail Enhancement Project 138 Item Number: C-1 Date: 01/24/17 Attachment: 1 175 of 210 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, 2016 Original Final Actual Amounts Revenues: Interest income 25,110$ 25,110$ 44,991$ 19,881$ Total revenues 25,110 25,110 44,991 19,881 Expenditures: Capital outlay: Centennial Bridge and Plaza Project 375,000 375,000 21,910 353,090 Maiden Statue Placement 50,000 50,000 - 50,000 Total expenditures 425,000 425,000 21,910 403,090 Excess of revenues over (under) expenditures (399,890) (399,890) 23,081 422,971 Other Financing Sources: 176,190 176,190 172,619 (3,571) 460,000 460,000 - (460,000) Total other financing sources (uses)636,190 636,190 172,619 (463,571) Net change in fund balance 236,300$ 236,300$ 195,700 (40,600)$ Fund balance, June 30, 2015 2,407,559 Fund balance, June 30, 2016 2,603,259$ Budget Variance with Final Budget Positive (Negative) Transfer from Historic City Hall Rehabilitation Fund Transfer from Parkland Facilities Fees Fund for Centennial Bridge & Plaza Project 139 Item Number: C-1 Date: 01/24/17 Attachment: 1 176 of 210 CITY OF ATASCADERO HISTORIC CITY HALL REHABILITATION FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2016 Original Final Actual Amounts Revenues: CalOES- Earthquake Repair Funds 40,260$ 40,260$ 36,456$ (3,804)$ FEMA- Earthquake Repair Funds 120,790 120,790 109,364 (11,426) Interest income - - 546 546 Total revenues 161,050 161,050 146,366 (14,684) Expenditures: Capital outlay: Historic City Hall Rehabilitation (City)24,880 24,880 5,483 19,397 Total expenditures 24,880 24,880 5,483 19,397 Excess of revenues over (under) expenditures 136,170 136,170 140,883 4,713 Other Financing Sources (Uses): (176,190) (176,190) (172,619) 3,571 Total other financing sources (uses)(176,190) (176,190) (172,619) 3,571 Net change in fund balance (40,020)$ (40,020)$ (31,736) 8,284$ Fund balance, June 30, 2015 31,736 Fund balance, June 30, 2016 -$ Transfer to the Master Agreement Fund Budget Variance with Final Budget Positive (Negative) 140 Item Number: C-1 Date: 01/24/17 Attachment: 1 177 of 210 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, 2016 Original Final Actual Amounts Revenues: Donations 1,410$ 1,410$ -$ (1,410)$ Interest income (1,810) (1,810) (842) 968 Total revenues (400) (400) (842) (442) Expenditures: Special projects and purchases: Other Minor Equipment 6,150 6,150 - 6,150 Total expenditures 6,150 6,150 - 6,150 Net change in fund balance (6,550)$ (6,550)$ (842) 5,708$ Fund balance, June 30, 2015 3,541 Fund balance, June 30, 2016 2,699$ Budget Variance with Final Budget Positive (Negative) 141 Item Number: C-1 Date: 01/24/17 Attachment: 1 178 of 210 CITY OF ATASCADERO ASSESSMENT DISTRICT #4 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2016 Original Final Actual Amounts Revenues: Taxes and assessments (refunds)(46,110)$ (43,550)$ (43,429)$ 121$ Interest income 260 270 270 - Total revenues (45,850) (43,280) (43,159) 121 Expenditures: District Administration - 270 270 - Contract Services 5,200 7,500 7,500 - Total expenditures 5,200 7,770 7,770 - Net change in fund balance (51,050)$ (51,050)$ (50,929) 121$ Fund balance, June 30, 2015 50,929 Fund balance, June 30, 2016 -$ Budget Variance with Final Budget Positive (Negative) 142 Item Number: C-1 Date: 01/24/17 Attachment: 1 179 of 210 CITY OF ATASCADERO 1992 STREET ASSESSMENT IMPROVEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2016 Original Final Actual Amounts Revenues: Interest income 860$ 860$ 3,077$ 2,217$ Total revenues 860 860 3,077 2,217 Expenditures: Services 2,450 2,450 - 2,450 Street repairs 171,000 171,000 - 171,000 Total expenditures 173,450 173,450 - 173,450 Net change in fund balance (172,590)$ (172,590)$ 3,077 175,667$ Fund balance, June 30, 2015 172,199 Fund balance, June 30, 2016 175,276$ Variance with Final Budget Positive (Negative) Budget 143 Item Number: C-1 Date: 01/24/17 Attachment: 1 180 of 210 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2016 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals ASSETS Current Assets: Cash and investments 1,794,558$ 2,508,409$ 210,383$ 4,513,350$ Receivables: Federal distributions due 1,109 3,850 1,905,940 1,910,899 Due from State of California 406 1,284 635,311 637,001 Accrued interest 3,144 4,457 364 7,965 Prepaid expenses 3,724 - - 3,724 Total current assets 1,802,941 2,518,000 2,751,998 7,072,939 Capital Assets: Non-depreciable: Construction in progress 57,674 1,201,662 121,230 1,380,566 Depreciable: Vehicles - 4,040,910 - 4,040,910 Equipment 2,383,969 2,925,508 21,024 5,330,501 Structures and improvements - - 49,144,741 49,144,741 Accumulated depreciation (2,121,742) (4,328,084) (5,401,365) (11,851,191) Net capital assets 319,901 3,839,996 43,885,630 48,045,527 Total assets 2,122,842 6,357,996 46,637,628 55,118,466 DEFERRED OUTFLOWS Deferred outflows related to pensions 79,069 - 74,719 153,788 Total deferred outflows 79,069 - 74,719 153,788 LIABILITIES Current Liabilities: Accounts payable 68,776 128,112 26,297 223,185 Accrued salaries and benefits 6,168 - 2,603 8,771 Noncurrent Liabilities: Noncurrent liabilities 380,394 - 359,253 739,647 Total liabilities 455,338 128,112 388,153 971,603 144 Item Number: C-1 Date: 01/24/17 Attachment: 1 181 of 210 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION (continued) June 30, 2016 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals DEFERRED INFLOWS Deferred inflows related to pensions 39,915$ -$ 37,719$ 77,634$ Total deferred inflows 39,915 - 37,719 77,634 NET POSITION Net investment in capital assets 319,901 3,839,996 43,885,630 48,045,527 Unrestricted 1,386,757 2,389,888 2,400,845 6,177,490 Total net position 1,706,658$ 6,229,884$ 46,286,475$ 54,223,017$ 145 Item Number: C-1 Date: 01/24/17 Attachment: 1 182 of 210 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2016 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating Revenues: Charges for services 710,300$ 169,550$ 470,250$ 1,350,100$ Total operating revenues 710,300 169,550 470,250 1,350,100 Operating Expenses: Salaries and benefits 278,129 - 257,940 536,069 Office expense 881 - - 881 Computer maintenance, software and replacement - - 2,490 2,490 Insurance - - 19,259 19,259 Occupancy and rental costs 30,790 - - 30,790 Utilities - - 68,903 68,903 Communications 6,199 - 2,139 8,338 Operating supplies and services 14,110 - 24,944 39,054 Vehicle and equipment operating costs 171 - 5,979 6,150 Contract services 73,220 - 33,210 106,430 Professional development 14,539 - 2,032 16,571 Recruitment 118 - 1,020 1,138 Administrative charges - - 47,330 47,330 Special projects: Exterior Paint Project- Police Station - - 10,123 10,123 Parking Lot Repairs- Fire Station #1 - - 3,500 3,500 Depreciation 133,031 362,081 1,070,808 1,565,920 Total operating expenses 551,188 362,081 1,549,677 2,462,946 Operating income (loss)159,112 (192,531) (1,079,427) (1,112,846) 146 Item Number: C-1 Date: 01/24/17 Attachment: 1 183 of 210 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2016 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Non-Operating Revenues (Expenses): Interest income 30,804$ 43,079$ 3,514$ 77,397$ Gain (loss) on sale of capital assets - 98 (5,957) (5,859) Total non-operating revenues (expenses)30,804 43,177 (2,443) 71,538 Change in net position prior to capital contributions 189,916 (149,354) (1,081,870) (1,041,308) Capital Contributions: Cash contributions from other funds 18,000 671,184 - 689,184 Capital contributions from other funds 4,455 800 48,929 54,184 Total capital contributions 22,455 671,984 48,929 743,368 Change in net position 212,371 522,630 (1,032,941) (297,940) Total net position, June 30, 2015 1,494,287 5,707,254 47,319,416 54,520,957 Total net position, June 30, 2016 1,706,658$ 6,229,884$ 46,286,475$ 54,223,017$ 147 Item Number: C-1 Date: 01/24/17 Attachment: 1 184 of 210 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2016 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Cash Flows From Operating Activities: Internal activity - payments from other funds 710,300$ 169,550$ 470,250$ 1,350,100$ Payments to suppliers of goods and services (98,852) (12,122) (209,737) (320,711) Payments for employee services (376,154) - (224,270) (600,424) Net cash provided (used) by operating activities 235,294 157,428 36,243 428,965 Acquisition of capital assets (143,792) (780,184) (2,798) (926,774) Cash contributions received for capital purchases 18,000 671,184 - 689,184 Proceeds from sale of capital assets - 7,940 - 7,940 Net cash provided (used) by capital and related financing activities (125,792) (101,060) (2,798) (229,650) Cash Flows From Investing Activities: Interest income 29,860 41,759 3,375 74,994 Net cash provided (used) by investing activities 29,860 41,759 3,375 74,994 Net increase in cash and cash equivalents 139,362 98,127 36,820 274,309 Cash and cash equivalents - June 30, 2015 1,655,196 2,410,282 173,563 4,239,041 Cash and cash equivalents - June 30, 2016 1,794,558$ 2,508,409$ 210,383$ 4,513,350$ Cash Flows From Capital and Related Financing Activities: 148 Item Number: C-1 Date: 01/24/17 Attachment: 1 185 of 210 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2016 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating income (loss)159,112$ (192,531)$ (1,079,427)$ (1,112,846)$ Depreciation expense 133,031 362,081 1,070,808 1,565,920 Receivables, net 281 - - 281 Prepaid expenses 3,116 - - 3,116 Accounts payable 37,779 (12,122) 11,192 36,849 Accrued salaries and benefits (13,363) - (6,133) (19,496) Deferred outflows (39,522) - (49,531) (89,053) Deferred inflows (56,804) - (23,886) (80,690) Net pension liability 6,918 - 112,643 119,561 Compensated absences 4,746 - 577 5,323 Net cash provided (used) by operating activities 235,294$ 157,428$ 36,243$ 428,965$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Change in assets and liabilities: 149 Item Number: C-1 Date: 01/24/17 Attachment: 1 186 of 210 Moss, Levy & Hartzheim LLP Certified Public Accountants 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455 Tel 805.925.2579 Fax 805.925.2147 mlhcpas.com BEVERLY HILLS · CULVER CITY · SANTA MARIA INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council City of Atascadero Atascadero, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atascadero (the City), as of and for the fiscal year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated January 3, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Santa Maria, California January 3, 2017 Item Number: C-1 Date: 01/24/17 Attachment: 2 187 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 Atascadero City Council Staff Report – City Manager’s Office City of Atascadero Marketing Plan Update 2016: Sept - December & Recap of Year RECOMMENDATION: Council receive and file marketing plan update. DISCUSSION: The City of Atascadero Marketing plan is designed to support our vision and brand that has been defined as Classic Americana, simply genuine, hometown feel and a “California as it used to be” experience. The go als for the City’s Marketing plan is to promote the City’s assets and events that appeal to local and county residents as well as encourage visitors who are already here, to “stay, spend and enjoy”. The plan has been designed to implement these goals by keeping our City’s businesses and assets top -of-mind through an ongoing advertising campaign, growing existing events as well as establishing new events that appeal to our target audience. Th is update captures what we have accomplished from September through December and present 2016 Year End results from our advertising efforts. The promotions portion will review the overall advertising campaign highlighting what was accomplished September through December as well as recap 2016. We will also to uch on the upcoming campaign that will highlight what and how we are promoting through the first quarter of 2017. The events portion will review events that transpired the last half of the year, a summary of events in 2016 and upcoming events for the first quarter of 2017. We will recap overall attendance, associated costs and their success in the presentation. The last marketing update presentation was given to Council on September 13th with a recap of the marketing and events from June through August 2016. This update will include ongoing marketing efforts for September through December and a snapshot of what we accomplished over 2016. 188 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 Promotions Recap:  Television Commercials o Commercials for KSBY and Charter were put in place beginning late October through December giving holiday focus to the ads to promote the variety of events going on from Holiday Boutique to Holiday Lighting to Holiday Walk Around the Lake to Winter Wonderland and the Zoo’s Holiday Magic. The creative for this ad showed a variety of things happening in Atascadero. We targeted channels like the Hallmark Channel and we scheduled time frames during prime time hours to make sure viewers saw our commercials. The geographic area covered SLO County and northern Santa Barbara County.  Digital Advertising o Digital banner ads with retargeting creative have been targeted to Downtown ads with Cider tasting and Historic City Hall that published from September through December. These ads have also run on sanluisobispo.com and ksby.com through September along with new Zoo creative. These ads are targeted to specific keyword searches, such as zoo, travel, craft beers, and a variety of targeted keywords through users search habits, what they are reading and when they are on our site, with the same geographic target as defined in SEM that follows. o Search Engine Marketing (SEM) has been ongoing monthly with the geographic target of Northern Santa Barbara County, all of SLO County, Monterey/Salinas, and the Central Valley. o In November and December, we primarily ran Winter Wonderland ads through December 9th and began Tamale Festival ads through January on ksby.com, sanluisobispo.com and added atowndailynews.com and pasoroblesdailynews.com for Tamale Festival. We ran an “E-Blast” campaign in September to target potential Tamale Vendors in the Northern Santa Barbara area out to Bakersfield, Fresno and SLO County up to King City to assist us in getting the word out to any and all tamale vendors for our Jan 21st event.  Social Media o We continue on a daily or as-needed basis with our Social Media posts on the Visit Atascadero and City of Atascadero Facebook pages, as well as on Instagram and Twitter for City of Atascadero and the Charles Paddock Zoo. o Press releases are distributed for all City and Zoo events and newsworthy happenings, which are also posted on the City’s website, Facebook pages , VisitSLOCounty.com, Atascadero Chamber website, and media event calendars throughout the county. 189 of 210 ITEM NUMBER: C-2 DATE: 01/24/17  Billboards & Bus Signs o We have billboard ads up at Highway 46/Lost Hills (facing east), along with our City Billboard panels which are located here in town. New creative for the Lost Hills billboard went up 12/5/16. o The Zoo, Historic City Hall & Faces of Freedom Veterans Memorial interior bus signs at Hearst Castle have been renewed through the end of February 2017. New Zoo bus signs were swapped out the week of 12/26/16.  Newspaper Advertising o Tribune newspaper ads are being utilized to promote the Downtown and events through event sponsorship. All newspaper ads include additional digital display ads on www.SanLuisObispo.com. o We’re running promotional print ads in the Tribune Magazines and Special Sections, i.e., Vintages magazine mid-September & the Jingle Holiday section that published on Thanksgiving. Since then, we have been promoting events from October through December to promote the holidays and most recently to promote January’s Restaurant Month. o We’re using New Times newspaper advertising for events with our sponsorship programs for Zoo Boo and Holiday Magic, as well as to promote Winter Wonderland in December; Restaurant Month in January. o Ad placements in the Atascadero News have been event specific with Corn Toss Tournament, Winter Wonderland and Tamale Festival. o Ongoing is our distribution of the Charles Paddock Zoo brochure in the Certified Rack Displays located in visitor racks throughout SLO hotels and the Welcome Center in Pismo Beach. Visit Atascadero brochures are ongoing and can be found in visitor racks located at all SLO hotels, Welcome Centers in Pismo Beach, Monterey, Oxnard, Merced; and the airports located in San Jose & Santa Barbara. We are working to move this to an ATBID Marketing Plan expense for Visit Atascadero in 2017.  Radio Advertising o American General Media radio station ads have primarily been used to highlight event sponsorship. Corn Toss Tournament and Winter Wonderland aired across AGM radio networks KJUG, KZOZ & COAST104.5. Currently, we are promoting Tamale Festival. o We’ve used Grape Encounters to air continuous spots and live promotion on the Quickbites program on station 92.5, along with commercials supporting events. Digital banner ads have also been added on the website for Grape Encounters.  Other o We have a commercial running on “Visitor TV” in the SLO Airport and in SLO County Hotels. o Galaxy Theatre in Atascadero ran Winter Wonderland in the month of November on the movie screens before a show. o www.VisitAtascadero.com website relaunch announced to the media and the public 12.19.16. 190 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 Events:  September through December Event o Cow Parade SLO – This event is the largest traveling art exhibit coming to San Luis Obispo County. Our cow has been ongoing and promoted from September 30th at its “Cow Tail Block Party” welcoming the cow through April 2017. There are 101 Cows on display from mid-September until the end of April 2017. This event provides our City the opportunity to showcase and promote our downtown along with the variety of attractions we have to offer. This event is part of a countywide effort to draw visitors into and from around the county to come out and view the variety of Cows on display. We chose the “Cow who wanted to be a Turtle” as it complements and promotes our Turtle in Trouble program at the Charles Paddock Zoo. It is also an opportunity for visitors to come over to the Zoo and enjoy our animals as well as learn about how the Zoo is involved in a long term research program of the Turtle and Tortoise species in the hopes of helping to save these animals from extinction. The artist of the Turtle Cow is Susan Schafer of Santa Margarita. This will provide Susan a local platform to showcase her talent as well. Two additional cows have managed to stay in the downtown adding to the Cow Parade program. The location of the two additional cows are strategically placed to give folks an opportunity to walk around and see our downtown area. o The “ShowDown” CornToss Tournament & Fun Day – October 22, 2016 Sunken Gardens from 10 am – 6 pm. This event was a well-received community event. The City partnered with the Knights of Columbus to bring the largest CornToss Tournament to the Central Coast and with Kiwanis for their assistance in building the cornhole boards. The tournament was made up of 32 teams. A Fun Day was included with it with a variety of games and bounce houses along with food trucks and craft breweries. o Holiday Events & Attendance – Holiday Lighting, Winter Wonderland, Holiday Walk Around the Lake and Holiday Magic all have incredible response and attendance. Holiday Boutique competed with another event, so in 2017 we will move the event up to the first weekend in November. Advertising efforts worked to support the growth and provide solid exposure to reach people to come to our town. o Other Community Events: Atascadero Showcase Mixer (9.17.16); Madagascar Exhibit Ribbon Cutting (11.5 .16) and Red Panda Ground Breaking (11.18.16). 191 of 210 ITEM NUMBER: C-2 DATE: 01/24/17  Upcoming Events and Event Ideas: o Tamale Festival: 2nd Annual event expanding to include over 50 vendors with 30 of them being Tamale Vendors. The amount of tamales available for purchase will be well over 21,000 this year vs. only 3,500 the first year (and 8 tamale vendors). Expansion includes the Mexican Dancing Horses and a Tamale Eating contest in addition to the regular “Best Tamale” contest and entertainment with the Mariachi band and Folklorico dancers. o Other Event Ideas for 2017: Expanding the annual Holiday Lighting event in 2018; Encouraging Farmers Market to move back downtown and then helping them build their event with promotions, etc.  Special Events upcoming and in progress: o Z-Day Car Show March 18th, 2017 o Cider Fest, May 13th, 2017 o Race Atascadero 2018 (date TBD) There will be an oral presentation given that reviews the above information and how well our marketing efforts have performed. We will also have an oral presentation from Verdin Marketing providing an update on the ATBID Tourism Marketing efforts. The marketing plan provides the original plan with updates highlighted in yellow. The updates also include where we are with budget. FISCAL IMPACT: None. ALTERNATIVES: 1. The City Council may provide staff direction on any desired adjustments to the current approved Marketing Plan. ATTACHMENTS: 1. September – December & 2016 YE Marketing Plan Updates 2. Special Event Sponsorship Criteria and Application Form 3. 2017 Events Calendar 192 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 1 City of Atascadero 2015-16 Draft Marketing Plan Update UPDATES Highlighted Capture Sept - December 2016 Executive Summary The City of Atascadero Marketing Plan is designed to promote the City’s assets and events that appeal to local and County residents as well as encourage visitors who are already here to stay, spend and enjoy. The Plan is designed with a focus on local businesses to at tract and promote shopping local. Growth in retail and restaurant sales will help attract more business to the area, which would then foster economic growth. This Marketing Plan integrates and compliments the information from the Atascadero Tourism & Promotion Game Plan by the Coraggio Group and the Atascadero Tourism (ATBID) Marketing Plan by Verdin Marketing. The City’s assets are defined as the Downtown core with historic City Hall, Galaxy Theater, Charles Paddock Zoo, Faces of Freedom Veterans Memorial, Atascadero Lake Park, Pavilion on the Lake, A- Town Skate Park and Chalk Mountain Golf Course. Target Audience Visitors, Local residents, SLO County residents Geographic Markets  In Market: Local & County Residents  Outer Market: o Primary Market: Central Valley, Northern Santa Barbara County & Salinas/ Monterey County o Secondary Market: Reflects County tourism efforts to reach South Bay/ Bay Area & Ventura/ LA/ OC markets. Behavioral Target  Market to the local and County residents across all ages, families, active retirees, children  Follows Atascadero ATBID Marketing Plan “Personas” defined by Trip Advisor that present the most opportunity for travel in 2015 for Visitors coming from outside of our area: o Millenials with no children from 28-35 years old. o Families aged 25-54 with more than one school aged child. 193 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 1 o Retirees and Baby Boomers over 55, either couples or social groups often “inter- generationally” traveling with extended family (but often paying for family members). o Childless couples from 30-54 years old. o “Bleisure” travelers who combine work travel with extra days with family or friends at a destination. o Key event travelers While most Destination Marketing Organizations (DMOs) want to target millennial travelers, research continues to show that 40-60 year olds still travel the most and have the most discretionary income. However, future travelers will come from the Millennial age groups and they still have strong preferences for their vacations:  36% of Millennials want a beach vacation this year  35% of Millenials want a “culture–oriented” trip  24% of Millenials want adventure-oriented trips  7 out of 10 Millenials report they have FOMO (Fear of Missing Out!) o Secondary Research – California Tourism Trends – California travel is at an all-time high due to road trips being more popular. (Please refer to the ATBID Marketing Plan)  Food & wine enthusiasts  Outdoor enthusiasts Unique Selling Proposition We have previously defined Atascadero in both the Coraggio Group Ten Year Vision and in the Verdin Marketing Creative Brief as follows: Atascadero is a beautiful and authentic city of outdoor recreation, culinary adventures, and welcoming hospitality. It’s a safe place where the arts and history thrive, and the diversity of experience, generosity of spirit, and small-town ambiance are here to be enjoyed by visitors and residents alike. – by City Council at 8/31/14 Strategic Planning Session with Coraggio Group Atascadero is California as it used to be. With classic roots, Atascadero is a traditional American town that offers authentic experiences with a blend of affordability and access to family friendly activities. – by Verdin Marketing 194 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 1 In Summary, Atascadero’s Unique Selling Proposition (USP): Atascadero is a classic American, family friendly town offering something for the whole family to enjoy from community events to historic attractions, a Veteran’s memorial, A-Town Skate Park and the Charles Paddock Zoo. Atascadero is known for warm summer evenings where locals can enjoy coming together for picnicking, playing horseshoes, walking around the Lake, hiking, golfing, biking and horseback riding. Downtown Atascadero offers a growing craft brewery and specialty spirits scene, along with fabulous food from surrounding restaurants. Take a stroll through the beautiful Sunken Gardens which is home to the historic City Hall that is surrounded by angel fountains that complement the architectural era of the structure. Nearby your walk will take you to the newest movie theater in the County, the Galaxy Theater. Marketing Strategy Goals 1. Keep the City’s businesses and assets top-of-mind through an ongoing advertising plan that spans the year to local and County residents and visitors to our area. 2. Establish new events and grow existing events that appeal to local and County residents as well as attract visitors. 3. Continually measure the success of the Marketing Plan through website growth, Sales Tax, TOT revenues and increase of social media followers Objectives Objective #1: Establish a top-of-mind advertising campaign and a promotional plan that spans the year highlighting the City’s businesses and assets of things to do and see while in Atascadero that appeal to local and County residents, as well as visitors while they are in our market. Promotion Plan Annual and on-going promotion of the City of Atascadero Businesses & Assets. Assets are defined as: Charles Paddock Zoo, Chalk Mountain Golf Course, Faces of Freedom, City Hall, Downtown, Galaxy Theater, A-town Skate Park, Pavilion on the Lake, Atascadero Lake Park. Themed promotions would apply to some of the tactics to promote local businesses and shopping local. Promotion Tactics  Broadcast TV Combo with KSBY/ KCOY ~ tailored to promote Key Events and to stay top of mind in the County with City assets and promoting our local businesses. o KSBY: :30 commercial spots with holiday event focus ran late October – early December 195 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 1 o Charter: :30 commercial spots with holiday event focus targeted to the Hallmark Channel and then sponsorship for Holiday Boutique on the “Countdown to Christmas”  Outdoor Advertising - o Outdoor advertising captures people as they are outside the home and on–the-go in public places. It provides reach and exposure to travelers coming into our market to be top-of-mind with things to do as well as while they are in our market as a reminder to what we have to offer.  Billboards in feeder markets: King City/ Salinas Corridor and/ or Santa Maria Corridor & consider Transit billboards inside Hearst Castle Busses and SLO County airport that markets to tourism as well as local residents.  Billboard in place March 1-March 2017 in Lost Hills. New creative in place 12.5.16. Other prime billboard locations have not been available.  Update panels of six Atascadero billboards – keeps our City’s assets top-of-mind while travelers are in our market and to local/County residents as a reminder of things to do.  Three panels in place. Waiting on the others to renew their creative. The sixth panel is in contract with Rossi Law firm.  Digital Media Focus on growing website traffic across VisitAtascadero.com and Atascadero.org reaching consumers living in San Luis Obispo County as well as looking to plan a trip to San Luis Obispo County. Integrates with the Atascadero ATBID Marketing Plan that includes digital and social media. o SEM & RETARGETING Contextual/Search/Site (4 months) ~  Zip Code Targeted: SLO County, Northern Santa Barbara County & South Monterey County; SEM to be used as asset (Zoo) and event targeted.  Annual Program in place for SEM & Retargeting.  Keywords can include City businesses and assets including the microbrew & specialty drinks scene plus coastal, culinary and historical to encourage visits to Atascadero so visitors stay and spend.  Annual Program in place with Keywords – adding to those as we add events (i.e. classic cars, car shows, etc.)  Reputation Management provides an email database from SEM that can be used for newsletters and marketing efforts.  Annual tracking with our dashboard is up and tracking our success. o E-Marketing 100,000 emails (6 email drops)  Targets desired audience and geography depending on the event or promotion. For instance, if we only want Cal Poly for Brew at the Zoo, we can send out that promotion to specific zip codes. If we want to promote Buy Local, we can e-blast to defined recipient that is a local resident, between ages of 25-40 and likes to golf, etc.  Email marketing executed to solicit Tamale Vendors mid- September for our Tamale Festival. o Sponsored Content – Specific opportunity to tell our story and showcase our businesses, the Zoo, City Hall, and the Downtown. Compliments retargeting efforts with content targeting.  Sponsored content on hold.  Social Media o Work on introducing Twitter, Foursquare & Google+ to City’s Social Media platform to assist in getting the word out. Twitter, Facebook & Instagram in place o Continually post with event information on City’s Facebook page.  Ongoing 196 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 1 o Establish a Social Media Calendar.  Social Media calendar follows Visit Atascadero calendar for events and posting, which is ongoing. Post for the Charles Paddock Zoo Facebook pages is also ongoing. In addition, City Facebook posts are done for City Council meetings, restaurant openings and events vs. just event/ tourism related topics.  Print o Magazines – Focus on Assets with magazines that have solid reach and in-market focus like Access’s Quarterly Visitors Guide and work on sharing advertising expenses with ATBID on magazines that have multi-market distribution, like Vintages.  Vintages 2x per year - March 2016 & September 2016 – shared September with ATBID.  Visitors Guide – quarterly in place for 2016 – split with ATBID o Newspapers – local & daily newspapers for reach and frequency of community events.  Ongoing advertising in Tribune, Atascadero News/ Paso Robles Press and New Times for events and event sponsorship plus across major media websites.  Giveaways – Permission to work with radio stations and other media to provide necessary giveaways to help promotion efforts (i.e., Radio remote includes 4 family packs of 4 tickets to the Zoo) - None needed for the Holiday Events.  Right Angle Inc.: Uncorked and Quick Bites Grape Encounters Radio Show o Provides focused content to promote events across SLO County (92.5 The KRUSH Wine Radio), Santa Maria, Bakersfield and Fresno.  Quick Bites radio show specific to promoting our events have aired for Tamale Festival in January. o Provides exposure across 60 US markets  Ongoing generic Atascadero spots and digital ads on their site are currently airing through the summer highlighting Atascadero across all markets.  Promotional flyers and banners have been executed for all major events through Q4.  Certified Brochure Distribution o Welcome Centers have a strong presence across the State and provide an excellent outlet to provide content in the form of personal travel advice and increase the length of stay and spend. Increased footprint to feeder markets that are traveling our direction. Expanded distribution includes Monterey Bay Welcome Center, San Jose Airport and Santa Barbara Airport added to existing SLO County area hotels and Pismo Beach, Oxnard and Merced Welcome Centers.  Visit Atascadero brochures in circulation throughout the Summer as described above (started early June 2016).  Zoo brochures distributed to all the SLO County hotels & Pismo Visitors Center (out since mid-February and ongoing). 197 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 1 Objective #2: Special Event Sponsorship Program to assist our growth efforts to attract events to Atascadero.  Atascadero would be an option for current events, traveling shows, and as a location to expand existing events. Special Event examples:  Attract from other areas (i.e., Quilt Show)  Expand events held across the County to add our City (i.e., Festival Mosaic)  Attract traveling shows (i.e., Cheerleading competitions, Cactus show)  Implement Special Event Criteria.  Two upcoming events: Corn Toss Tournament was initiated and added with the proposal from Knights of Columbus and qualified with our Special Event criteria due to the growth potential and aligning with our City’s Marketing goals.  Establish consistent Sponsorship criteria where possible, especially with our media partners. (Approved and in place) Objective #3: Develop and implement Event portfolio to grow and expand existing events and establish new events based on market trends and interest. Following recaps how our events are classified:  Tier1: Large Signature Events (1-2 night stay)  Tier 2: Signature Event (overnight stay)  Tier 3: Single Day Event Event Plan Tier 1 Events: Large Signature Events (1-2 Night Hotel Stay) - Identify existing trademark events that have the potential and interest to expand to a longer weekend stay for visitors and that encourage local and County residents to participate. Work with ATBID on Event ideas. o Hot El Camino Cruise Nite & Car Show Weekend – introduce “Dancing in the Streets” to promote a grand event on Saturday night that people will stay to enjoy. Coordinate with Main Street Association and Mid State Cruizers Car Club.  NEW 2016: Dancing in the Streets to add onto Cruise Nite. o SAVOR Adventure Tour & Main Event – New and engaging event in store from the Bristol Cider Adventure Tour to an interactive booth at the Main Event to highlight local culinary offerings unique to our city - cider, microbreweries, lavender, local restaurants, etc.  Done in the Spring - Staff worked with ATBID to execute and promote local flair to the booth with beer, cider, caterers, restaurants bread, vinegar, olive oil, sausage all from the Local businesses in Atascadero. o Atascadero Lakeside Wine Festival – promoting the evening wine tasting event combined with Sunday “Fun-Day” activities at the individual wineries to encourage festival attendees to visit local wineries the day after the wine festival and extend their stay.  Working with the Chamber & Hotels to expand event in 2017; 2016 was a “Stroll through the Zoo” where you will have a unique experience with the Zoo educators and the animals they bring out! 198 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 1 Tier 2 Events: Signature Events -Expand existing events and introduce new events to offer more activities that increases interest and participation both locally and across the County. o Colony Days – working with committee to add “Tent City After Dark” event which will highlight local brewery scene & add dancing to extend celebration of Colony Days.  Staff executed and assisted Tent City Committee on the Tent City After Dark addition in 2015. Committee building on its success in 2016. o Winter Wonderland – New for the City this year, this family event was created and established by our Main Street Assn., and we are working to continue an event enjoyed by families both locally and across the County with over 15,000 in attendance.  Executed new event in 2015 for the City and working on improving in 2017. o Holiday Lighting – grow from a lighting of the Sunken Gardens trees and expand it to a hospitality night type of event with merchants offering hot cider and sweets to encourage local residents to start your shopping early.  Work to minimally expand event in 2016 with the help of Cal Poly students; 2017 working to move date to day after Thanksgiving and include Christmas trees, reindeer and horse and buggy experience Tier 3 Events: Single Day Events - consider events that have an established trend in other markets and make sense to introduce to our market. Idea is to encourage growth to an overnight stay. o New Events:  “The ShowDown” CornToss Tournament & Fun Day – October 22nd, 2016  Tamale Festival – 3rd weekend in January, January 21st, 2017 – starting to work on 2017 Tamale vendors.  Brew at the Zoo Event – Spring 2017, April 29th o Food Truck Event –One day trial event in the fall with a plan to be weekly in the summer “Food Mania Mondays” or “Food Truck Fridays”  Dancing in the Streets was a success – adding it to Cruising Weekend for 2017. o Other Ideas - Ongoing:  Taste of Home – Cooking Evening, local eats, features local celebrity chefs.  Trading Day or Flea Market  Art in the Park Community “Locals Favorite” Events – Typically promoted through PR Tactics with press releases, mailings, flyer distribution and targeted print, radio and online advertising. Defined as follows: o Seasonal Events  Tuesday’s BBQ in the Park; Movies in the Gardens; Summer Concert series at the Atascadero Lake Bandstand mid June through August. o 2016-17 One-time Events:  Chamber Business Expo/ Showcase Mixer  Madagascar Exhibit Ribbon Cutting  Red Panda Ground Breaking  CowParadeSLO – Welcome Party, September 30, 2016; Continuing to market the Cow – In November, Taco Day on Traffic Way Cow Bingo for the kids. 199 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 1 Event Tactics – In place  Work on ongoing Public Relations Plan per event.  Promote event with assistance of sponsorship revenue. Potential revenue not reflected in the event expenses.  Advertise in Traditional media (print, radio & TV) and digital based on the type of event (i.e., If Brew at the Zoo – Cal Poly’s Mustang Daily News and Radio promo with 92.5 the KRUSH Combo) Event expense includes advertising. Objective #4: Outreach to merchants, Atascadero Chamber of Commerce, Atascadero Main Street to work together on promotions that focus on shopping local.  Restaurant Promotions o Themed promotions - Restaurant Month, Greyhound Month, Health Month, etc.  January Restaurant Month – promoted along with ATBID & VisitSLOCounty in January via print ads and online digital ads via New Times & Tribune’s Ticket Entertainment section.  March – April – promoting Zoo and Zoo events; June – September – promoting Downtown and Zoo.  April – June – Menus publication promoting Downtown and things to do in Atascadero.  Focusing to promote CowParade with Cows Downtown that tie into events like Taco Day on Traffic Way.  Local Retail ~ Shop Local Focus o Buy Local Promotions - Frequent Visitor Card, Passport Weekends, etc.  Business Focused Events – Designed to drive traffic to Atascadero o Event ideas: Food Truck event, Art in the Park, Date Night, Farmers Market (move to a different location ~ Atascadero Lake Park or Sunken Gardens), Taco Day on Traffic Way, etc.  Traffic Way businesses – working with committee of business owners to promote their events, i.e. – Taco Day on Traffic Way – November 12th 2-5 pm; and implementation of light pole banners  Atascadero Alliance – working with committee to capture the events in our area that span through non-profits, business events, etc. Recent meeting had SPOKES there on grant writing.  Main Street Association – working with them to assist with Sweetheart Stroll. Objective #5: Establish measurement metrics for promotions, events and a combination of the two that gauge the success of our promotions.  Websites - Utilize information from our current website traffic on www.visitatascadero.com, www.atascadero.org and www.charlespaddockzoo.org as a benchmark to gauge success with our Marketing Plan to see growth in traffic with page views, unique visitors and bounce rate. o Established a dashboard and website metrics to gauge performance of marketing dollars. 200 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 1  Zoo - Utilize the Zoo’s zip code information to understand where people are visi ting from and use attendance figures to gauge success with a consistent marketing effort to grow Zoo attendance. (i.e., in August, 3,400 visitors were in County and 2,000 were out of the area). In progress.  Transient Occupancy Tax (TOT) to gauge increase in hotel stays year over year. This will be off until Springhill Suites Marriott come upon its one year anniversary in June/ July. In progress.  Sales Tax to gauge increase across different business categories. Specific categories: Restaurants & Retail Categories contingent upon authorization to release. In progress.  Colony Park Community Center Increase in participation of sign ups to the variety of activities In progress.  Pavilion on the Lake – growth in weddings and events and website traffic. In progress.  Community feedback with the Chamber’s Business Walk, Main Street Association, Traffic Way Business Group Meetings. Increase in visitor activity with Chamber insight and travel brochure activity. In progress. Net Budget Actual Expenditures Revenue Net Actual Event Budget Details Charles Paddock Zoo: One time: 60th Anniversary $ 1,500 $ (2,316.71)-$ $ (2,316.71) Brew at the Zoo – Spring 2016 10,000 (7,051.27)13,495.00 6,443.73 SAVOR 10,000 (11,312.10)- (11,312.10) Winter Wonderland 20,000 (28,454.85)17,055.00 (11,399.85) Tamale Fest (Food Event/Annual) 10,000 (5,932.83)1,000.00 (4,932.83) Dancing in the Streets (Cruisin Weekend) 10,000 - - - Taste of Home - Cooking Event 10,000 - - - Miscellaneous Existing Event/Event Ideas (Wine Fest,Holiday Lighting,Walk Around Lake,Art &Wine, Cow Parade, Movies) 10,000 (8,009.13)1,000.00 (7,009.13) Reactive Event Costs (equipment needs, unplanned costs, decor)10,000 (11,437.71) - (11,437.71) Total Event Costs 91,500 (74,514.60) 32,550.00 (41,964.60) Promotion Budget Details Broadcast TV (KSBY/ KCOY) 15,000 (5,725.00)- (5,725.00) Digital Media 10,500 (8,287.56)- (8,287.56) Outdoor Advertising 26,000 (15,095.23)- (15,095.23) Print/ Newspapers & Magazines 6,000 (12,960.49)- (12,960.49) Brochure Distribution/Printing 12,000 (11,212.14) (11,212.14) Professional Fees/ Contract Services - Right Angle Inc. (Radio Show/ Graphics) 16,500 (16,500.00)- (16,500.00) Agency Costs (branding /graphics) 17,500 (31,782.56) (31,782.56) City Hall Tours – Staff Saturday 5,000 (4,966.69) (4,966.69) Miscellaneous (local chapter dues, etc.) (350.00) (350.00) Total Promotions Costs 108,500 (106,879.67) - (106,879.67) Total Events & Promotions Costs $ 200,000 $ (181,394.27) $32,550.00 $ (148,844.27) City of Atascadero Marketing Plan 2015-16 Budget Details – Update Budget vs. Actual (as of 6/30/16) 201 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 2 2016 City of Atascadero Special Event Sponsorship Criteria The purpose of establishing Special Event Sponsorship Criteria is to be able to attract a variety of events and travel shows to the City. These events might already be established with another location in the County; would have an interest to add an event to our City that would be new; or bring media value that reaches a considerable amount of people in and outside the County. The venue would be offered as part of the value of the sponsorship program being considered. Special Event Sponsorship Guidelines To be able to qualify for sponsorship, the event would need to follow certain criteria for consideration. Following are the Sponsorship criteria:  New and emerging events may be considered based on these criteria: o Regional appeal. o National or Tourism appeal. o Event has promotional ability:  Secured marketing funds to promote event that provides exposure.  Requires measureable media exposure with City logo. Includes City logo on event website, mention and/or logo in brochures; logo identification and mention in print and online banner ads.  Other sponsors o Potential for growth and sustainability.  If the event qualifies, the City would provide the following as part of the sponsorship: o Venue of choice (i.e., The Pavilion, Sunken Gardens, Atascadero Lake Bandstand). o City Press Release to promote the even to the Media for Editorial exposure. If the special event does not meet the above guidelines, we would provide the regular Rental Rates that apply to the venue being considered for the inquiring organization. Any questions or interest in our Special Event Sponsorship Program, please call Terrie Banish (805) 470-3490. 202 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 2 2016 City of Atascadero Special Event Application Form Requesting Organization: _______________________________________________ Contact: _________________________ Phone Number: _______________________ Email: ____________________________ Mailing Address: ____________________ City, State, Zip: ________________________________________________________ Name of Event: ________________________________________________________ Event Description: _____________________________________________________ ______________________________________________________________________ Event Dates/Times: _____________________________________________________ Event Website: ___________ _____________________________________________ Total Anticipated Attendees: ________ % From Outside SLO County: ___________ Support Requested (desired monetary amount or in-kind marketing support): _______ ______________________________________________________________________ Additional Details: _____________________________________________________ ______________________________________________________________________ Please feel free to attach additional information for consideration 203 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 2 2016 City of Atascadero Special Event Application Form EXHIBIT A Organization Obligation:  Event at the Venue being considered will receive the following: o Listing on organization website: YES or NO (Circle one) o Mention in Social Media: YES or NO (Circle one), If YES, how many posts, and boosts? o Mention at the Event: YES or NO (Circle one) o Tickets to the Event: YES or NO (Circle one), If YES, how many tickets & value: o Booth Space: YES or NO (Circle one), If YES, please include value:  Ad promoting the Venue on will be included in the following (please include value): o Print Ads Include: o Commercial Spot on following TV stations: o Commercial Spot on following Radio stations: o Online Banner Ad included: YES or NO, (Circle One). If YES, How many impressions & value:  Total value/ cost: EXHIBIT B City of Atascadero Obligation:  Venue being considered: (Agreement with detail of usage must be filled out and accommodate this agreement.  Agrees to give use of the following Venue:  Use of sound system & electricity: Yes or No  Total value/ cost: Signature Date Signature Date ORGANIZATION: CITY: City of Atascadero Contact: Contact: Terrie Banish Phone: Phone: 805-470-3490 E-mail: E-mail: tbanish@atascadero.org Address: 6500 Palma Ave. Atascadero, CA 93422 204 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 3 CITY OF ATASCADERO ~ EVENT CALENDAR 2017  January o 2nd Annual Tamale Festival, January 21st, 12-4 pm at the Sunken Gardens in Downtown Atascadero! This year, the festival will feature a wide variety of tamale vendors offering sweet, gourmet and traditional tamales. The first event was extremely popular and so ld out of tamales within the first two hours of the event, so for this year, we are ready with plenty of tamales for everyone to purchase! Prepare for a new Tamale Eating contest for ages under 18 & 18 and over! A Best Tamale Contest amongst the vendors participating in the event from People’s Choice to Judges Favorite! The event is FREE to attend and will feature the Mariachi Mexicanismo band, traditional Folklorico dancers, bounce houses, face painting and fun for all ages! Rain or shine! For information call (805) 470-3360 or www.VisitAtascadero.com  February o Father Daughter Dance, Pavilion on the Lake; Feb 3rd 6:30-9:30 pm (Ages 11 and under) & Feb 4th 7-10 pm (12 and up), Show her how special she really is...Fathers, uncles, grandfathers, or anyone with a special girl is invited to spend a semiformal evening full of music, dancing, refreshments, desserts & more! A professional photographer will be on - site with affordable picture packages. Guests are welcome to purchase tickets for either night, no matter what your age. Dance is held at the Pavilion on the Lake and tickets may be purchased at the Colony Park Community Center, 5599 Traffic Way. For more information, please call 470-3178 or visit www.atascadero.org - NO TICKETS WILL BE SOLD AT THE DOOR. $30/couple residents, $35/couple non-residents, $5 additional daughters. For ticket information contact (805) 470-3360 or www.Atascadero.org o Sweetheart Stroll, February 11th, 1-4 pm, Tickets will be available in front of Historic City Hall, 6500 Palma Ave.; $20/ ticket includes wine glass, over 15 wineries pouring at the different merchant locations downtown! We will also be hosting complementary tours at Historic City Hall! For more information, www.VisitAtascadero.com! o North County Wedding Faire, Pavilion on the Lake, February 19th, 3:30 – 7:30 pm; presented by Atascadero News. For the Bride-to-Be this is a must attend event to gain all the information in one place of that special day! For information www.VisitAtascadero.com  March o Slider Day on Traffic Way, March 11th, 1-4 pm. Traffic Way in Downtown Atascadero. Come for a taste of the Irish with a variety of merchants hosting a fun-filled afternoon for all ages! Sliders are the food theme for this year! Tickets on sale at The Carlton. Presented by Traffic Way Collaborators. Rain or Shine! For more information contact www.AtascaderoArtsDistrict.com o Dancing with Our Stars! Pavilion on the Lake – March 23, 24 & 25th, 5 – 10 pm! 205 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 3 o NEW Z-Day California Atascadero, March 18th from 10 am – 4 pm. SoCalZ’s are coming to Downtown Atascadero for the Annual Car Show! Z-Day California is back again for its third annual premier Datsun/Nissan Z car show being hosted by Fast Intentions. We are committed to making the show even bigger and better than before. The show will include Z cars from all generations from across the state, music, entertainment, racing simulators, a mobile dyno machine, trophies, models, raffles, food trucks, vendors, a beer island, media coverage and special guest appearance by Formula Drift Champion Chris Forsberg. For more information, stay tuned on www.VisitAtascadero.com! o Art & Wine Tour, March 24th 5:30 – 8:30 pm Downtown Atascadero $15/ ticket includes wine glass, tastings among downtown merchants, tours of Historic City Hall. Presented by Main Street Association.  April o El Dorado Broadcasters 9th Annual Easter Egg Hunt – Atascadero Lake Park – April 9th 10 am – 2 pm! o Spring Festival @ the Charles Paddock Zoo April 9th through April 23rd, 2017. Zoo hours 10 am - 5 pm! Spring will be spectacular this year because your favorite backyard friends are back! Come enjoy fur and feathers for a limited time. In addition, check out the new Madagascar exhibit and the new home that is in progress for the Red Panda’s! The Spring Festival is included with General Admission to the Zoo. For more information call (805) 461-5080; www.charlespaddockzoo.com o Charles Paddock Zoo Conservation Celebration Day, April 15th, 10 – 2 pm at the Zoo. Activities are included with admission. o Children’s Day in the Park – April 22nd 11 am -3 pm at Atascadero Lake Park. Tons of fun for all ages! For more information, call (805) 470-3360. o 3rd Annual Brew at the Zoo at the Charles Paddock Zoo, April 29th from 5:30-8:30 pm, tickets include a commemorative beer glass, microbrewery and cider tasting & live music – Presale $30/ticket; $35/ ticket at the door. Must be 21 years and over. Tickets go on sale April 1st at the Zoo. Visit www.VisitAtascadero.com or call (805) 461-5080. o Colony Home Tour – April 29th, 1-4 pm, Colony House, corner East Mall & Palma. For more information contact atascaderocolonymuseum@gmail.com or (805) 466-8341. Presented by the Atascadero Historical Society.  May o Art & Wine Tour, presented by Atascadero Chamber of Commerce – May 12th, 5:30 – 8:30 pm Downtown Atascadero $15/ ticket includes wine glass, tastings among downtown merchants, tours of Historic City Hall. Atascadero Historical Society Docents will take you on a journey back in time covering the beginning through the restoration process that followed after the San Simeon Earthquake. For more information, www.AtascaderoChamber.org or www.AtascaderoColonyMuseum.org, (805) 466-8341. o 2nd Annual Cider Festival – May 13th 5-8:30 at the Pavilion on the Lake! Tune into www.VisitAtascadero.com for more information! o Cookie Adventure at the Charles Paddock Zoo - May 14th from 11 am to 2 pm. Enjoy a variety of cookies this Mother’s Day at the Zoo! 206 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 3 o 2nd Annual Lake Fest – May 20th from 10-5 pm at Atascadero Lake Park. Activities for all ages starting in the morning with a 5k Family Fun Run and Walk, cardboard & duct tape boat races, canoe races, rubber ducky races and more! All proceeds benefit special projects for the Lake. Presented by Friends of Atascadero Lake. o Veterans Memorial Day Ceremony & BBQ, May 29th from 12-3 pm at the Faces of Freedom Veterans Memorial on Hwy 41 at Atascadero Lake Park.  June o Saturday in the Park ~ Summer Concert Series Kicks Off with an Evening of Jazz –June 17th at the Atascadero Lake Park Bandstand from 6:30 – 9:30 pm! Concerts are FREE to the Public! Food is available! Stay tuned for the band line-up. For more information visit www.VisitAtascadero.com or call (805) 470-3360 Saturday in the Park ~ Summer Concert Series Kicks Off with an Evening of Jazz on June 17th at the Atascadero Lake Park Bandstand from 6:30 – 8:30 pm! Concerts will be every Saturday through August 12th - only exception is June 24th. Following are the dates to mark on your calendar: June 17th: Evening of Jazz! July 1st, July 8th, July 15th, July 22nd, July 29th, August 5th, August 12th: Concerts are FREE to the Public! Food is available for purchase! For more information, visit www.VisitAtascadero.com/events or call (805) 470-3360 o Tuesday in the Park BBQ– Tuesdays June 20th through August 29th! Every Tuesday from 5- 7 pm enjoy a tri tip and chicken BBQ dinner complete with all the fixins and then sit back and enjoy the Atascadero Community Band from 7-8 pm. Adults 12 & over $12, Seniors over 60 $10, Children 11 & under $6 – take out also available! For more information contact (805) 466-2044 or www.AtascaderoChamber.org. o Atascadero Wine Festival Weekend! June 23rd – June 25th:  Kiwanis & Mayors’ Winemaker Dinner – Pavilion on the Lake ~ June 23rd at 6 pm proceeds benefit the Atascadero Boys & Girls Club.  Wine Festival Morning Golf Tournament – June 24th presented by Atascadero Optimist Club and Chalk Mountain Golf Course  Atascadero Lakeside Wine Festival – June 24th at Atascadero Lake Park from 4-8 pm. Includes wine tasting featuring Central Coast Wineries, Art and culinary vendors and Charles Paddock Zoo admission. Presented by the Atascadero Chamber of Commerce.  Sunday Fun Day – June 25th – “Wine” down with your local favorite local wineries. Enjoy exclusive winery discounts and waived tastings at participating wineries! For more information: http://www.atascaderochamber.org/wine-festival/ 207 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 3  July o Saturday in the Park ~ Summer Concert Series at the Atascadero Lake Park Bandstand! July 1, 8, 15, 22, 29 from 6:30 – 8:30 pm. Concerts are FREE to the Public! Food is available! Stay tuned for the band line-up. For more information visit www.VisitAtascadero.com or call (805) 470-3360 o NEW Colony Days 4th of July Bluegrass Freedom Festival at Atascadero Lake Park – stay tuned…. more to come! o Tuesday in the Park BBQ – Tuesdays July 11th through August 29th! Every Tuesday from 5- 7 pm enjoy a tri tip and chicken BBQ dinner complete with all the fixin’s and then sit back and enjoy the Atascadero Community Band from 7-8 pm. Adults 12 & over $12, Seniors over 60 $10, Children 11 & under $6 – take out also available! For more information contact (805) 466-2044 or www.AtascaderoChamber.org. o Ice Cream Zoofari at the Charles Paddock Zoo! July 15th 5:30 pm – 8:30 pm, Come enjoy lots of Ice Cream along with the animals! $12/ person 12+; $8/ person 3 -11 years old; Free – 2 years and under, Members $2 discount on each ticket. Visit www.VisitAtascadero.com or call (805) 461-5080. o Mid State Fair: July 19th – July 30th Paso Robles – for more info: www.midstatefair.com  August o Movies in the Gardens at Sunken Gardens: August 5, 12, 26 & Sept 2nd, 8 pm – 11 pm – Come see your favorite movie with the family under the stars! Movies are Free to the Public! Food is available! For more information, visit www.VisitAtascadero.com or call (805) 470-3360 o Saturday in the Park ~ Summer Concert Series at the Atascadero Lake Park Bandstand! August 5 & 12th from 6:30 – 8:30 pm. Concerts are FREE to the Public! Food is available! Stay tuned for the band line-up. For more information visit www.VisitAtascadero.com or call (805) 470-3360 o Tuesday in the Park BBQ– Tuesdays in August from 5-7 pm (ends August 29th). Enjoy a tri tip and chicken BBQ dinner complete with all the fixins and then sit back and enjoy the Atascadero Community Band from 7-8 pm. Adults 12 & over $12, Seniors over 60 $10, Children 11 & under $6 – take out also available! For more information contact (805) 466- 2044 or www.AtascaderoChamber.org. o Enjoy a Cruisin’ Weekend in Atascadero: August 18th – August 19th  Hot El Camino Cruise Night Kicks off the weekend on Friday, August 18th starting at 6:30 – 8:30 pm throughout Atascadero down El Camino Real. For pre- registration visit www.VisitAtascadero.com or call (805) 470-3360 for more information.  28th Annual Atascadero Lake Car Show – Saturday, August 19th 10:00 a.m. – 3:00 p.m. - Mid-State Cruizers presents a fabulous Car Show! For information on participating contact: Duane Powell @ (805) 466 – 3853 or Larry Wilson @ (805) 466 - 2265 or www.midstatecruizers.org (participation is first come, first served) 208 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 3  2nd Annual Dancing in the Streets, Saturday, August 19th 5-9 pm Downtown Atascadero. Enjoy an evening with performances and bands scattered throughout our downtown area and a variety of antique cars on display. Be prepared to dance in the streets and enjoy the variety of restaurants we have to offer! For info: (805) 470-3360, www.VisitAtascadero.com o Art & Wine Tour – August 25th 5:30 – 8:30 pm Downtown Atascadero $15/ ticket includes wine glass, tastings among downtown merchants, tours of Historic City Hall. For more information contact (805) 466-2044 or www.AtascaderoChamber.org.  September o Movies in the Gardens at Sunken Gardens: Sept 2nd, 8 pm – 11 pm – Come see your favorite movie with the family under the stars! Movies are Free to the Public! Food is available! For more information visit www.VisitAtascadero.com or call (805) 470-3360 o 2nd Annual Showdown Cornhole Tournament – Saturday, September 30th, 9 am – 5 pm Sunken Gardens, Atascadero, for more information visit www.VisitAtascadero.com  October o Colony Days – October 21st downtown Atascadero ~ Join us for a day and evening of activities!  Colony Days Parade & Festivities – begins at 10 am through 3 pm, event is Free to the public, special parade down El Camino Real followed by a variety of activities throughout Tent City and Sunken Gardens, tours of City Hall, the Colony House and more! Experience life the way it used to be during the early days of the Colony of Atascadero!  Tent City After Dark – a special evening in Tent City with special music, dancing & beer tasting under the stars. Tickets available for purchase. All proceeds benefit Tent City. o Zoo Boo at the Charles Paddock Zoo, October 28th from 5-8:30 pm, Regular Admission $10 per person; Members $9 per person; Ages 2 and Under Free. Visit www.VisitAtascadero.com or call (805) 461-5080.  November o Holiday Boutique at the Pavilion on the Lake, November 4th, 10-3 pm. Over 50 vendors await you for this one-day craft show where all items are handmade! Get a head start on your holiday shopping or buy something special just for you! www.VisitAtascadero.com or call (805) 470-3178. o Veteran’s Day at the Faces of Freedom Veterans Memorial, Atascadero Lake Park November 11th 11 am! Visit www.facesoffreedom.com. Plus, Armed Forces Day at the Charles Paddock Zoo, 10-4 pm - All Active Duty Armed Forces men, women and their immediate families (spouses and children) receive free admission to the Zoo. Just bring your Military ID! Visit www.VisitAtascadero.com or call (805) 461-5080. o 3rd Annual Taco Day on Traffic Way – November 18th 2-5 pm, Downtown Atascadero along Traffic Way – shop and eat your way down Traffic Way and see the cool businesses 209 of 210 ITEM NUMBER: C-2 DATE: 01/24/17 ATTACHMENT: 3 along the way! Family Friendly! Tickets available at The Carlton, $10 for 5 Tacos. For more information contact www.AtascaderoArtsDistrict.com  December o Annual Holiday Tree Lighting & Art & Wine! - December 1st, beginning at 5:30 pm in the Sunken Gardens in downtown Atascadero. We will kick off the Art & Wine event along with the Atascadero Chamber of Commerce. To participate in this portion of the event, the charge is $15/ ticket and includes a wine glass, wine tastings among participatin g downtown merchants! This event will then be followed by the lighting of our Sunken Gardens. Children can enjoy a visit with Santa following the lighting as well as enjoy a complementary tour of Historic City Hall and hot chocolate. This portion of the event is free and everyone is invited to bring their family and friends to enjoy an evening of Holiday fun! www.VisitAtascadero.com or call (805) 470-3360. To participate in the Art & Wine, information is available at (805) 466-2044 or www.AtascaderoChamber.org. o Holiday Musical Walk Around the Lake – December 2nd, 5:30 – 9:30 pm at Atascadero Lake Park. Enjoy a special evening walk around the lake with musical groups, carolers, Santa, community singing, holiday decorations and more! Presented by the Atascadero Lake Neighborhood Association. Visit www.atascaderolake.net for more information. o Winter Wonderland ~ one of Central Coasts Largest Holiday Event! December 8th, from 5-9 pm, Atascadero’s Sunken Gardens & Downtown. A winter paradise indeed for all ages! Massive snow slide, snow play areas, rock climbing wall, bounce houses, Joe’s Little Train, Santa and Mrs. Claus and over 50 food and craft vendors await you! Have fun and get some shopping in all in one evening! www.VisitAtascadero.com or call (805) 470- 3360. o Holiday Magic at the Charles Paddock Zoo - December 16th from 11-2 pm. Experience the magic of the holiday season as the zookeepers step in as Santa’s Elves to prepare gifts for the animals. Santa will be there too! Something for everyone! www.VisitAtascadero.com or call (805) 461-5080. o Annual Fireman’s Ball – December 31st starting at 7 pm, The Carlton. Dress is tuxedos and black tie, however semi-formal attire is welcomed! We will be serving heavy hours d’ oeuvres, picture opportunities on the Red Carpet, DJ music, drinks and dancing until 2017! Presented by the Atascadero Firefighters Association. For more information contact (805) 470-3300 or www.Atascadero.org January 2018  3rd Annual Tamale Festival - Saturday, January 20, 2018 from 10-4 pm, Downtown Atascadero and Sunken Gardens! Longer hours and much MORE Tamales than last year! This event will feature homemade tamales from a variety of tamale vendors, “Best Tamale” contest, mariachi bands, dancers and a variety of entertainment including with bounce houses, face painting, balloon animals and plenty of activities for the kids. Rain or shine! For information call (805) 470-3360 or www.VisitAtascadero.com 210 of 210