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HomeMy WebLinkAboutCC_2018_01_23_AgendaPacket CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, January 23, 2018 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California (Entrance on Lewis Ave.) CITY COUNCIL CLOSED SESSION: 5:00 P.M. 1. CLOSED SESSION -- PUBLIC COMMENT 2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER a. Public Employee Performance Evaluation (Govt. Code 54957) Title: City Manager 4. CLOSED SESSION – ADJOURNMENT 5. COUNCIL RETURNS TO CHAMBERS 6. CLOSED SESSION – REPORT REGULAR SESSION – CALL TO ORDER: 6:00 P.M. City Council Closed Session: 5:00 P.M. City Council Regular Session: 6:00 P.M. Public Financing Authority: Immediately following conclusion of the City Council Regular Session Page 1 of 242 PLEDGE OF ALLEGIANCE: Council Member Bourbeau ROLL CALL: Mayor O’Malley Mayor Pro Tem Fonzi Council Member Bourbeau Council Member Moreno Council Member Sturtevant 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. PRESENTATIONS: 1. Employee Recognition A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non-controversial by City staff and will be approved by one motion if no member of the Council or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the item before action is taken.) 1. City Council Draft Action Minutes – January 9, 2018  Recommendation: Council approve the City Council Draft Action Minutes of the January 9, 2018, City Council meeting. [City Clerk] 2. December 2017 Accounts Payable and Payroll  Fiscal Impact: $2,539,574.04  Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for December 2017. [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.) Page 2 of 242 B. PUBLIC HEARINGS: 1. La Plaza Development Road Closure and Tentative Map  Fiscal Impact: The proposed actions will help facilitate the development and success of the downtown core and the La Plaza Mixed-Use Project will result in a positive economic impact for all business sectors within the downtown. The removal of the right-of-way from City maintenance will slightly reduce the inventory of road right-of-way which in turn will reduce long term maintenance costs.  Recommendation: Council adopt Draft Resolution approving a tentative subdivision map and establishing a road closure of Atascadero Mall and the road abandonment of portions of Atascadero Mall and El Camino Real to allow the development of a public plaza and facilitate the development of the La Plaza Mixed-Use Project. [Community Development] C. MANAGEMENT REPORTS: 1. Approval of Draft Conceptual Plans and Procurement for Playground Replacements and Upgrades at Atascadero Lake Park  Fiscal Impact: Approval of this item will result in expenditures of approximately $280,000 in Housing Related Parks (HRP) grant monies.  Recommendations: Council: 1. Approve draft conceptual plans for replacement of youth playground structure, swing sets, and other upgrades including poured -in-place rubberized surfacing at Atascadero Lake Park. 2. Authorize the City Manager to execute a contract for $280,013.05 with Great Western Recreation to furnish and construct playground replacements and upgrades at Atascadero Lake Park. 3. Authorize the Director of Public Works to file a Notice of Completion with the County Recorder upon satisfactory completion of the project. [Public Works] 2. Fiscal Year 2016-2017 Audit  Fiscal Impact: None.  Recommendation: Council review and accept the financial audit for the period ended June 30, 2017.[Administrative Services] 3. City of Atascadero Marketing Update 2017-2018  Fiscal Impact: None.  Recommendations: Council receive and file Marketing Update 2017 -2018. [City Manager] 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.) Page 3 of 242 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) 6. Ad Hoc Animal Shelter Committee 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. Atascadero Basin Ground Water Sustainability Agency (GSA ) 6. Ad Hoc Animal Shelter Committee Council Member Bourbeau 1. City of Atascadero Design Review Committee 2. Homeless Services Oversight Council 3. City of Atascadero Finance Committee 4. SLO County Water Resources Advisory Committee (WRAC) 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 E. INDIVIDUAL DETERMINATION AND / OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager F. ADJOURN TO MEETING OF 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. Page 4 of 242 I, Amanda Muther, Deputy City Clerk of the City of Atascadero, declare under penalty of perjury that the foregoing agenda for the January 23, 2018 Regular Session of the Atascadero City Council was posted on January 16, 2018, at the Atascadero City Hall, 6500 Palma Avenue, Atascadero, CA 93422 and was available for public review at that location. Signed this 16th day of January 2018, at Atascadero, California. Amanda Muther, Deputy City Clerk City of Atascadero Page 5 of 242 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 Disabilities 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 meeting 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 presentation for the record. Please check in with the City C lerk 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 ident ify the subject, 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 s tep 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. Page 6 of 242 ITEM NUMBER: A-1 DATE: 01/23/18 Atascadero City Council January 9, 2018 Page 1 of 4 CITY OF ATASCADERO CITY COUNCIL DRAFT MINUTES Tuesday, January 9, 2018 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California (Entrance on Lewis Ave.) 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, Sturtevant, Mayor Pro Tem Fonzi and Mayor O’Malley. Absent: None. Staff Present: City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Public Works Director Nick DeBar, Community Development Director Phil Dunsmore, Fire Chief Casey Bryson, City Attorney Brian Pierik, Deputy City Manager/City Clerk Lara Christensen. City Council Regular Session: 6:00 P.M. Successor Agency to the Community Immediately following Redevelopment Agency of Atascadero the conclusion of the City Regular Session: Council Regular Session Page 7 of 242 ITEM NUMBER: A-1 DATE: 01/23/18 Atascadero City Council January 9, 2018 Page 2 of 4 APPROVAL OF AGENDA: MOTION: By Council Member Sturtevant 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 5:0 by a roll-call vote. PRESENTATIONS: None. Mayor O’Malley noted that the presentation originally scheduled for Linda Hendy would be given at the Annual Chamber Dinner later in the month. He welcomed the new Chamber CEO and President Derek Kirk. A. CONSENT CALENDAR: 1. City Council Draft Action Minutes – December 12, 2017  Recommendation: Council approve the City Council Draft Action Minutes of the December 12, 2017, City Council meeting. [City Clerk] 2. November 2017 Accounts Payable and Payroll  Fiscal Impact: $2,401,341.41  Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for November 2017. [Administrative Services] MOTION: By Mayor Pro Tem Fonzi and seconded by Council Member Sturtevant to approve the Consent Calendar. Motion passed 5:0 by a roll-call vote. 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: Vicki Burton (Exhibit A), Randy Rutkowski (Exhibit B), and Susan Funk. Mayor O’Malley closed the COMMUNITY FORUM period. B. PUBLIC HEARINGS: None. Page 8 of 242 ITEM NUMBER: A-1 DATE: 01/23/18 Atascadero City Council January 9, 2018 Page 3 of 4 C. MANAGEMENT REPORTS: 1. Fiscal Year 2017 Annual Road Report  Fiscal Impact: Distribution of the 2017 Community Road Report is estimated to cost approximately $3,500 in budgeted General Funds.  Recommendations: Council: 1. Approve the Fiscal Year 2017 Annual Road Report. 2. Approve the 2017 Community Road Report. [Public Works] Public Works Director DeBar gave the presentation and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Citizens Sales Tax Oversight Committee Members Carol Simonin and Scott Burgess. Mayor O’Malley closed the Public Comment period. MOTION: By Mayor Pro Tem Fonzi and seconded by Council Member Sturtevant to: 1. Approve the Fiscal Year 2017 Annual Road Report. 2. Approve the 2017 Community Road Report. Motion passed 5:0 by a roll-call vote. 2. Implement Policy to Amend the Calculation of the Annual Escalation Factor of the Community Facilities District 2005-1  Fiscal Impact: Staff does not expect that this policy change will have a fiscal impact.  Recommendation: Council adopt Draft Resolution implementing Policy to amend the calculation of the annual escalation factor for the levy of the Special Tax in the City of Atascadero Community Facilities District No. 2005-1. [Administrative Services] Administrative Services Director Rangel gave the presentation and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Vicki Fogelman. Mayor O’Malley closed the Public Comment period. MOTION: By Council Member Moreno and seconded by Council Member Bourbeau to adopt Resolution 2018-001 implementing Policy to amend the calculation of the annual escalation factor for the levy of the Special Tax in the City of Atascadero Community Facilities District No. 2005-1 with the following revision to Section 2: Page 9 of 242 ITEM NUMBER: A-1 DATE: 01/23/18 Atascadero City Council January 9, 2018 Page 4 of 4 Bullet point c is revised to read – Take the lesser of the results from steps a and b above and apply that rate. 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. County Mayors Round Table 2. SLO Council of Governments (SLOCOG) Mayor Pro Tem Fonzi 1. Atascadero Basin Ground Water Sustainability Agency (GSA ) E. INDIVIDUAL DETERMINATION AND / OR ACTION: None. F. ADJOURN Mayor O’Malley adjourned the meeting to a Regular Meeting of the Successor Agency at 7:23 p.m. MINUTES PREPARED BY: ______________________________________ Lara K. Christensen Deputy City Manager / City Clerk The following exhibit is available for review in the City Clerk’s office:  Exhibit A – Photos showing the pot-belly pig rescue on Atascadero Avenue provided by Vick i Burton.  Exhibit B – Letter to Council regarding the pot-belly pig rescue on Atascadero Avenue provided by Randy Rutkowski. APPROVED: Page 10 of 242 ITEM NUMBER: A-2 DATE: 01/23/18 Page 11 of 242 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2017 2779 12/01/2017 STATE DISBURSEMENT UNIT 335.08Payroll Vendor Payment 2780 12/01/2017 HEALTHEQUITY, INC.7,845.00Payroll Vendor Payment 2781 12/01/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 22,513.78Payroll Vendor Payment 2782 12/01/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 36,043.99Payroll Vendor Payment 2783 12/01/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 688.47Payroll Vendor Payment 2784 12/01/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 1,829.33Payroll Vendor Payment 2785 12/01/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,460.41Payroll Vendor Payment 2786 12/01/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,913.84Payroll Vendor Payment 2787 12/01/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 4,405.06Payroll Vendor Payment 2788 12/01/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 7,347.81Payroll Vendor Payment 155008 12/01/2017 ALLSTATE WORKPLACE DIVISION 2,133.31Payroll Vendor Payment 155009 12/01/2017 ANTHEM BLUE CROSS HEALTH 154,270.29Payroll Vendor Payment 155010 12/01/2017 LINCOLN NATIONAL LIFE INS CO 1,511.53Payroll Vendor Payment 155011 12/01/2017 MEDICAL EYE SERVICES 1,710.58Payroll Vendor Payment 155012 12/01/2017 PREFERRED BENEFITS INSURANCE 9,378.30Payroll Vendor Payment 2789 12/05/2017 RABOBANK, N.A.51,401.94Payroll Vendor Payment 2790 12/05/2017 EMPLOYMENT DEV DEPARTMENT 13,216.29Payroll Vendor Payment 2791 12/05/2017 EMPLOYMENT DEV. DEPARTMENT 1,890.92Payroll Vendor Payment 155019 12/05/2017 U.S. BANK 30,814.58Accounts Payable Check 155020 12/07/2017 U.S. POSTMASTER 2,000.00Accounts Payable Check 155021 12/08/2017 A J'S APPLIANCE SERVICE 85.00Accounts Payable Check 155022 12/08/2017 ALTHOUSE & MEADE, INC.1,237.50Accounts Payable Check 155023 12/08/2017 AMERICAN MARBORG 107.20Accounts Payable Check 155024 12/08/2017 AMERICAN WEST TIRE & AUTO INC 737.26Accounts Payable Check 155025 12/08/2017 ANTECH DIAGNOSTICS 400.80Accounts Payable Check 155026 12/08/2017 ASSOCIATED TRAFFIC SAFETY 3,230.00Accounts Payable Check 155027 12/08/2017 AT&T 264.65Accounts Payable Check 155028 12/08/2017 AT&T 33.10Accounts Payable Check 155029 12/08/2017 ATASCADERO HAY & FEED 1,895.34Accounts Payable Check 155031 12/08/2017 ATASCADERO MUTUAL WATER CO.12,638.25Accounts Payable Check 155032 12/08/2017 ATASCADERO PICKLEBALL CLUB 61.50Accounts Payable Check 155033 12/08/2017 ALAN BAKER 64.11Accounts Payable Check 155034 12/08/2017 BANK OF NEW YORK MELLON 1,975.00Accounts Payable Check 155035 12/08/2017 BASSETT'S CRICKET RANCH,INC.693.99Accounts Payable Check 155036 12/08/2017 KEITH R. BERGHER 551.25Accounts Payable Check 155037 12/08/2017 BERRY MAN, INC.1,073.05Accounts Payable Check 155038 12/08/2017 BIG RED MARKETING, INC.3,000.00Accounts Payable Check 155039 12/08/2017 DENA BORDERS 77.00Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/23/18 ATTACHMENT: 1 Page 12 of 242 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2017 155040 12/08/2017 BORJON AUTO CENTER 208.33Accounts Payable Check 155041 12/08/2017 BOUND TREE MEDICAL, LLC 506.44Accounts Payable Check 155042 12/08/2017 BREZDEN PEST CONTROL, INC.93.00Accounts Payable Check 155043 12/08/2017 SHIRLEY R. BRUTON 419.70Accounts Payable Check 155044 12/08/2017 CASEY BRYSON 76.00Accounts Payable Check 155045 12/08/2017 BUTLER BUSINESS MACHINES 122.84Accounts Payable Check 155046 12/08/2017 C3 CONSTRUCTION & DEVELOPMENT 6,139.91Accounts Payable Check 155047 12/08/2017 CA CODE CHECK, INC.4,265.21Accounts Payable Check 155048 12/08/2017 CALPORTLAND CONSTRUCTION 751,236.09Accounts Payable Check 155049 12/08/2017 TAMI CARLISLE 77.00Accounts Payable Check 155050 12/08/2017 CHARTER COMMUNICATIONS 8,830.40Accounts Payable Check 155051 12/08/2017 CHEVRON & TEXACO BUS. CARD 219.25Accounts Payable Check 155052 12/08/2017 KATHLEEN J. CINOWALT 91.70Accounts Payable Check 155053 12/08/2017 CJN EVENT PLANNING 300.00Accounts Payable Check 155054 12/08/2017 CO OF SAN LUIS OBISPO SART PRG 1,040.00Accounts Payable Check 155055 12/08/2017 COASTAL PARK & RECREATION 3,520.00Accounts Payable Check 155056 12/08/2017 MIGUEL A. CORDERO 115.00Accounts Payable Check 155057 12/08/2017 CORELOGIC SOLUTIONS, LLC.125.00Accounts Payable Check 155058 12/08/2017 COUNTY OF SAN LUIS OBISPO 322.00Accounts Payable Check 155059 12/08/2017 CREDIT DATA SOLUTIONS, LLC 20.00Accounts Payable Check 155060 12/08/2017 CRYSTAL SPRINGS WATER 145.75Accounts Payable Check 155061 12/08/2017 CULLIGAN/CENTRAL COAST WTR TRT 70.00Accounts Payable Check 155062 12/08/2017 SHARON J. DAVIS 115.50Accounts Payable Check 155063 12/08/2017 DCS TESTING & EQUIPMENT, INC.2,317.25Accounts Payable Check 155064 12/08/2017 NICHOLAS DEBAR 300.00Accounts Payable Check 155065 12/08/2017 PHILIP DUNSMORE 300.00Accounts Payable Check 155066 12/08/2017 ED'S FLYMEAT LLC 44.95Accounts Payable Check 155067 12/08/2017 EL CAMINO BUILDING SUPPLY 142.02Accounts Payable Check 155068 12/08/2017 ELECTRICRAFT, INC.290.04Accounts Payable Check 155069 12/08/2017 ESCUELA DEL RIO 561.00Accounts Payable Check 155070 12/08/2017 FERGUSON ENTERPRISES, INC.1,042.05Accounts Payable Check 155071 12/08/2017 FERRELL'S AUTO REPAIR 135.10Accounts Payable Check 155072 12/08/2017 FGL ENVIRONMENTAL 288.00Accounts Payable Check 155073 12/08/2017 FILIPPONI CONCRETE PUMPING 297.00Accounts Payable Check 155074 12/08/2017 FOOD FOR LESS 118.24Accounts Payable Check 155075 12/08/2017 GARRY BRILL PRODUCTIONS 150.00Accounts Payable Check 155076 12/08/2017 GAS COMPANY 454.64Accounts Payable Check 155077 12/08/2017 GEM AUTO PARTS 522.23Accounts Payable Check 155078 12/08/2017 MICHAEL GOMEZ 82.00Accounts Payable Check 155079 12/08/2017 GRANITE CONSTRUCTION, INC.13,814.75Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/23/18 ATTACHMENT: 1 Page 13 of 242 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2017 155080 12/08/2017 BRADLEY A. HACKLEMAN 633.00Accounts Payable Check 155081 12/08/2017 HANLEY AND FLEISHMAN, LLP 3,367.00Accounts Payable Check 155082 12/08/2017 HANSEN BRO'S CUSTOM FARMING 16,389.13Accounts Payable Check 155083 12/08/2017 HART IMPRESSIONS PRINTING 841.87Accounts Payable Check 155084 12/08/2017 RYAN HOFSTETTER 198.91Accounts Payable Check 155085 12/08/2017 HOME DEPOT CREDIT SERVICES 1,568.16Accounts Payable Check 155086 12/08/2017 HOP'S BOUNCE HOUSE 100.00Accounts Payable Check 155087 12/08/2017 IMPACT ABSORBENTS, INC.90.69Accounts Payable Check 155088 12/08/2017 INHOUSE SECURITY SERVICE, LLC 552.00Accounts Payable Check 155089 12/08/2017 JK'S UNLIMITED 1,032.51Accounts Payable Check 155090 12/08/2017 KENNETH'S HEATING AND AIR, LLC 196.44Accounts Payable Check 155091 12/08/2017 KAYLA KERRIGAN 82.00Accounts Payable Check 155092 12/08/2017 LEE WILSON ELECTRIC CO. INC 1,583.39Accounts Payable Check 155093 12/08/2017 LIFE ASSIST, INC.1,667.04Accounts Payable Check 155094 12/08/2017 CRAIG C. LOWRIE 46.00Accounts Payable Check 155095 12/08/2017 MADRONE LANDSCAPES, INC.845.00Accounts Payable Check 155096 12/08/2017 BECKY MAXWELL 41.84Accounts Payable Check 155097 12/08/2017 SAMUEL HENRY MCMILLAN, JR.92.00Accounts Payable Check 155098 12/08/2017 MEDPOST URGENT CARE-PASO ROBLE 948.00Accounts Payable Check 155099 12/08/2017 MICHAEL K. NUNLEY & ASSC, INC.3,037.50Accounts Payable Check 155100 12/08/2017 MINER'S ACE HARDWARE 931.72Accounts Payable Check 155101 12/08/2017 MISSION UNIFORM SERVICE 373.72Accounts Payable Check 155102 12/08/2017 REON C MONSON 108.00Accounts Payable Check 155103 12/08/2017 MUNICIPAL MAINT EQUIPMENT, INC 1,015.02Accounts Payable Check 155104 12/08/2017 MV TRANSPORTATION, INC.10,576.17Accounts Payable Check 155105 12/08/2017 MWI ANIMAL HEALTH 72.41Accounts Payable Check 155106 12/08/2017 NATIONAL RECREATION & PARK ASC 170.00Accounts Payable Check 155107 12/08/2017 NEOPOST USA, INC.692.55Accounts Payable Check 155108 12/08/2017 NORTH COAST ENGINEERING INC.3,027.00Accounts Payable Check 155109 12/08/2017 HILLARY ODELL 82.00Accounts Payable Check 155110 12/08/2017 OFFICE DEPOT INC.702.06Accounts Payable Check 155111 12/08/2017 TARA ORLICK 39.06Accounts Payable Check 155114 12/08/2017 PACIFIC GAS AND ELECTRIC 42,241.83Accounts Payable Check 155115 12/08/2017 PASO ROBLES CHEVROLET 258.45Accounts Payable Check 155116 12/08/2017 PRAXAIR DISTRIBUTION, INC.48.50Accounts Payable Check 155117 12/08/2017 PROCARE JANITORIAL SUPPLY,INC.1,190.64Accounts Payable Check 155118 12/08/2017 QUINN RENTAL SERVICES 191.23Accounts Payable Check 155119 12/08/2017 JERI RANGEL 300.00Accounts Payable Check 155120 12/08/2017 RACHELLE RICKARD 500.00Accounts Payable Check 155121 12/08/2017 MICHELLE R. ROGERS 168.00Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/23/18 ATTACHMENT: 1 Page 14 of 242 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2017 155122 12/08/2017 SAFETY DRIVERS ED., LLC.27.30Accounts Payable Check 155123 12/08/2017 SERVICE SYSTEMS ASSC, INC.4,000.00Accounts Payable Check 155124 12/08/2017 SIGNS OF SUCCESS, INC.1,050.97Accounts Payable Check 155125 12/08/2017 DAVID L. SMAW 115.00Accounts Payable Check 155126 12/08/2017 SOUTH COAST EMERGENCY VEH SVC 380.49Accounts Payable Check 155127 12/08/2017 SPEAKWRITE, LLC.623.27Accounts Payable Check 155128 12/08/2017 SPECIES 360 1,356.82Accounts Payable Check 155129 12/08/2017 STANLEY CONVERGENT SECURITY 549.00Accounts Payable Check 155130 12/08/2017 STAPLES CREDIT PLAN 307.43Accounts Payable Check 155131 12/08/2017 STATE BOARD OF EQUALIZATION 314.00Accounts Payable Check 155132 12/08/2017 SUN BADGE COMPANY 152.92Accounts Payable Check 155133 12/08/2017 SUNLIGHT JANITORIAL, INC.2,811.00Accounts Payable Check 155134 12/08/2017 ULTREX BUSINESS PRODUCTS 147.29Accounts Payable Check 155135 12/08/2017 UNITED STAFFING ASSC., INC.2,012.91Accounts Payable Check 155136 12/08/2017 CANDI VAN HORN 1,796.52Accounts Payable Check 155137 12/08/2017 VERIZON WIRELESS 1,791.15Accounts Payable Check 155138 12/08/2017 WCJ PROPERTY SERVICES 1,066.50Accounts Payable Check 155139 12/08/2017 BRANDON J. WELLS 46.00Accounts Payable Check 155140 12/08/2017 WEX BANK - 76 UNIVERSL 9,083.67Accounts Payable Check 155141 12/08/2017 WEX BANK - WEX FLEET UNIVERSAL 6,363.84Accounts Payable Check 155142 12/08/2017 WILKINS ACTION GRAPHICS 1,227.59Accounts Payable Check 155143 12/08/2017 WULFING'S BACKGROUND & POLYGR 1,000.00Accounts Payable Check 155144 12/08/2017 KAREN B. WYKE 359.70Accounts Payable Check 155145 12/08/2017 DEBRA R. BREWER 35.00Accounts Payable Check 155146 12/11/2017 UNIVERSAL PREMIUM FLEETCARD 264.91Accounts Payable Check 155147 12/14/2017 ATASCADERO MID MGRS ORG UNION 40.00Payroll Vendor Payment 155148 12/14/2017 ATASCADERO POLICE OFFICERS 1,305.00Payroll Vendor Payment 155149 12/14/2017 ATASCADERO PROF. FIREFIGHTERS 1,050.85Payroll Vendor Payment 155150 12/14/2017 MASS MUTUAL WORKPLACE SOLUTION 7,500.50Payroll Vendor Payment 155151 12/14/2017 NATIONWIDE RETIREMENT SOLUTION 609.30Payroll Vendor Payment 155152 12/14/2017 NAVIA BENEFIT SOLUTIONS 1,119.22Payroll Vendor Payment 155153 12/14/2017 SEIU LOCAL 620 932.34Payroll Vendor Payment 155154 12/14/2017 VANTAGEPOINT TRNSFR AGT 106099 337.31Payroll Vendor Payment 155155 12/14/2017 VANTAGEPOINT TRNSFR AGT 304633 4,595.81Payroll Vendor Payment 2792 12/15/2017 STATE DISBURSEMENT UNIT 335.08Payroll Vendor Payment 2793 12/15/2017 HEALTHEQUITY, INC.5,785.00Payroll Vendor Payment 2794 12/15/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 22,538.65Payroll Vendor Payment 2795 12/15/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 36,264.72Payroll Vendor Payment 2796 12/15/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 676.41Payroll Vendor Payment ITEM NUMBER: A-2 DATE: 01/23/18 ATTACHMENT: 1 Page 15 of 242 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2017 2797 12/15/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 1,884.46Payroll Vendor Payment 2798 12/15/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,460.41Payroll Vendor Payment 2799 12/15/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,025.67Payroll Vendor Payment 2800 12/15/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 4,405.06Payroll Vendor Payment 2801 12/15/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 7,425.12Payroll Vendor Payment 2802 12/19/2017 RABOBANK, N.A.63,192.55Payroll Vendor Payment 2803 12/19/2017 EMPLOYMENT DEV DEPARTMENT 17,671.77Payroll Vendor Payment 2804 12/19/2017 EMPLOYMENT DEV. DEPARTMENT 1,877.18Payroll Vendor Payment 155156 12/22/2017 AGM CALIFORNIA, INC.350.00Accounts Payable Check 155157 12/22/2017 AGP VIDEO, INC.2,707.50Accounts Payable Check 155158 12/22/2017 AIR-RITE REFRIGERATION 75.00Accounts Payable Check 155159 12/22/2017 ALL SIGNS AND GRAPHICS, LLC 352.34Accounts Payable Check 155160 12/22/2017 ALLIANCE READY MIX, INC.554.91Accounts Payable Check 155161 12/22/2017 AMERICAN WEST TIRE & AUTO INC 3,543.41Accounts Payable Check 155162 12/22/2017 ASSOCIATED TRAFFIC SAFETY 141.26Accounts Payable Check 155164 12/22/2017 AT&T 1,130.70Accounts Payable Check 155165 12/22/2017 AT&T 933.34Accounts Payable Check 155166 12/22/2017 ATASCADERO NEWS 675.00Accounts Payable Check 155167 12/22/2017 BANK OF NEW YORK MELLON 2,470.00Accounts Payable Check 155168 12/22/2017 BORJON AUTO CENTER 2,928.52Accounts Payable Check 155169 12/22/2017 BRISTOLS CIDER HOUSE 949.56Accounts Payable Check 155170 12/22/2017 KEVIN L. BRITT 115.00Accounts Payable Check 155171 12/22/2017 BUTLER BUSINESS MACHINES 352.17Accounts Payable Check 155172 12/22/2017 CA CODE CHECK, INC.1,322.50Accounts Payable Check 155173 12/22/2017 CALLBACK STAFFING SOLUTION,LLC 66.47Accounts Payable Check 155174 12/22/2017 CALPORTLAND CONSTRUCTION 8,655.38Accounts Payable Check 155175 12/22/2017 CASEY PRINTING, INC.5,743.87Accounts Payable Check 155177 12/22/2017 CHARTER COMMUNICATIONS 3,493.01Accounts Payable Check 155178 12/22/2017 KAELAN CLARK 200.00Accounts Payable Check 155179 12/22/2017 CLASSIC BLINDS & DRAPERIES 154.08Accounts Payable Check 155180 12/22/2017 TIMOTHY CLEAVER 200.00Accounts Payable Check 155181 12/22/2017 COASTAL REPROGRAPHIC SERVICES 354.61Accounts Payable Check 155182 12/22/2017 COUNTY OF SAN LUIS OBISPO 359.00Accounts Payable Check 155183 12/22/2017 CRITICAL REACH, INC.285.00Accounts Payable Check 155184 12/22/2017 CRYSTAL SPRINGS WATER 171.55Accounts Payable Check 155185 12/22/2017 MATTHEW J. CURRY 385.00Accounts Payable Check 155186 12/22/2017 D.A.D.S. TILE AND GROUT RESTOR 2,345.00Accounts Payable Check 155187 12/22/2017 DARRYL'S LOCK AND SAFE 79.74Accounts Payable Check 155188 12/22/2017 DEKRA-LITE 19,989.03Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/23/18 ATTACHMENT: 1 Page 16 of 242 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2017 155189 12/22/2017 DEPARTMENT OF JUSTICE 326.00Accounts Payable Check 155190 12/22/2017 DRIVE CUSTOMS 3,300.00Accounts Payable Check 155191 12/22/2017 ELECTRICRAFT, INC.10,317.82Accounts Payable Check 155192 12/22/2017 ESCUELA DEL RIO 68.00Accounts Payable Check 155193 12/22/2017 FASTENAL COMPANY 98.43Accounts Payable Check 155194 12/22/2017 FENCE FACTORY ATASCADERO 201.00Accounts Payable Check 155195 12/22/2017 FERGUSON ENTERPRISES, INC.473.15Accounts Payable Check 155196 12/22/2017 FERRELL'S AUTO REPAIR 460.22Accounts Payable Check 155197 12/22/2017 FOOD FOR LESS 31.36Accounts Payable Check 155198 12/22/2017 GAS COMPANY 346.23Accounts Payable Check 155199 12/22/2017 GEM AUTO PARTS 209.64Accounts Payable Check 155200 12/22/2017 GILBERT'S LANDSCAPES 407.91Accounts Payable Check 155201 12/22/2017 HART IMPRESSIONS PRINTING 342.48Accounts Payable Check 155202 12/22/2017 HERC RENTALS, INC.3,042.51Accounts Payable Check 155203 12/22/2017 RACHEL HUNTER 160.82Accounts Payable Check 155204 12/22/2017 IMPACT ABSORBENTS, INC.264.74Accounts Payable Check 155205 12/22/2017 EVELYN R. INGRAM 588.00Accounts Payable Check 155206 12/22/2017 THE INK CO.126.54Accounts Payable Check 155207 12/22/2017 IRON MOUNTAIN RECORDS MGMNT 168.48Accounts Payable Check 155208 12/22/2017 J. CARROLL CORPORATION 189.60Accounts Payable Check 155209 12/22/2017 JIFFY LUBE 78.10Accounts Payable Check 155210 12/22/2017 JK'S UNLIMITED 2,612.55Accounts Payable Check 155211 12/22/2017 JUICE MEDIA PRODUCTIONS, LLC 2,400.00Accounts Payable Check 155212 12/22/2017 K PENCE CONSULTING 1,552.50Accounts Payable Check 155213 12/22/2017 BRENDAN P. KELSO 336.00Accounts Payable Check 155214 12/22/2017 KIDZ LOVE SOCCER 1,638.00Accounts Payable Check 155215 12/22/2017 KPRL 1230 AM 620.00Accounts Payable Check 155216 12/22/2017 KSBY COMMUNICATIONS, LLC 600.00Accounts Payable Check 155217 12/22/2017 LEE WILSON ELECTRIC CO. INC 1,465.00Accounts Payable Check 155218 12/22/2017 LEHIGH HANSON 2,134.35Accounts Payable Check 155219 12/22/2017 LIFE ASSIST, INC.176.54Accounts Payable Check 155220 12/22/2017 CRAIG C. LOWRIE 230.00Accounts Payable Check 155221 12/22/2017 MADRONE LANDSCAPES, INC.6,468.00Accounts Payable Check 155222 12/22/2017 MAINLINE UTILITY CO.1,100.00Accounts Payable Check 155223 12/22/2017 MARTIN SEAL COATING 8,273.00Accounts Payable Check 155224 12/22/2017 SAMUEL HENRY MCMILLAN, JR.184.00Accounts Payable Check 155225 12/22/2017 SAMUEL H. MCMILLAN, SR.46.00Accounts Payable Check 155226 12/22/2017 MEDPOST URGENT CARE-PASO ROBLE 443.00Accounts Payable Check 155227 12/22/2017 MICHAEL K. NUNLEY & ASSC, INC.5,492.14Accounts Payable Check 155228 12/22/2017 MID-COAST MOWER & SAW, INC.1,525.05Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/23/18 ATTACHMENT: 1 Page 17 of 242 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2017 155229 12/22/2017 MINER'S ACE HARDWARE 79.74Accounts Payable Check 155230 12/22/2017 MATTHEW J. MIRANDA 443.33Accounts Payable Check 155231 12/22/2017 MISSION UNIFORM SERVICE 278.64Accounts Payable Check 155232 12/22/2017 REON C MONSON 60.00Accounts Payable Check 155233 12/22/2017 MUNICIPAL MAINT EQUIPMENT, INC 390.83Accounts Payable Check 155234 12/22/2017 NEW TIMES 464.00Accounts Payable Check 155235 12/22/2017 NORTH COAST ENGINEERING INC.1,137.50Accounts Payable Check 155236 12/22/2017 NOWDOCS INTERNATIONAL, INC.362.04Accounts Payable Check 155237 12/22/2017 OFFICE DEPOT INC.55.45Accounts Payable Check 155238 12/22/2017 ONTRAC 5.35Accounts Payable Check 155239 12/22/2017 O'REILLY AUTOMOTIVE, INC.81.14Accounts Payable Check 155240 12/22/2017 PASO ROBLES FORD LINCOLN MERC 193.77Accounts Payable Check 155241 12/22/2017 PERRY'S PARCEL & GIFT 46.38Accounts Payable Check 155242 12/22/2017 MORGAN PHILLIPS 92.00Accounts Payable Check 155243 12/22/2017 MIKE PIWOWARSKI 200.00Accounts Payable Check 155244 12/22/2017 PRAXAIR DISTRIBUTION, INC.50.08Accounts Payable Check 155245 12/22/2017 PROCARE JANITORIAL SUPPLY,INC.1,200.87Accounts Payable Check 155246 12/22/2017 QUINCY ENGINEERING, INC.22,348.24Accounts Payable Check 155247 12/22/2017 QUINN RENTAL SERVICES 296.08Accounts Payable Check 155248 12/22/2017 RICK ENGINEERING COMPANY 10,886.50Accounts Payable Check 155249 12/22/2017 ROSSI TRANSPORT SERVICE 2,206.72Accounts Payable Check 155250 12/22/2017 SAM'S TREE SERVICE 3,000.00Accounts Payable Check 155251 12/22/2017 SAN LUIS POWERHOUSE, INC.135.00Accounts Payable Check 155252 12/22/2017 DIEGO SEGOVIA 283.34Accounts Payable Check 155253 12/22/2017 SLO COUNTY SHERIFF'S OFFICE 184.00Accounts Payable Check 155254 12/22/2017 SMART AND FINAL 227.12Accounts Payable Check 155255 12/22/2017 DAVID L. SMAW 138.00Accounts Payable Check 155256 12/22/2017 MARY P. SMITH 1,519.01Accounts Payable Check 155257 12/22/2017 BRUCE ST. JOHN 10.00Accounts Payable Check 155258 12/22/2017 STANLEY CONVERGENT SECURITY 540.94Accounts Payable Check 155259 12/22/2017 STATE WATER RES CONTROL BOARD 31,731.00Accounts Payable Check 155260 12/22/2017 SUPERIOR CRANE & TRANSPORT 1,320.00Accounts Payable Check 155261 12/22/2017 TERRA VERDE ENVIRONMENTAL CONS 813.26Accounts Payable Check 155262 12/22/2017 TESCO CONTROLS, INC.1,741.61Accounts Payable Check 155263 12/22/2017 TUCKFIELD & ASSOCIATES 1,147.50Accounts Payable Check 155264 12/22/2017 TYLER TECHNOLOGIES, INC.17,583.03Accounts Payable Check 155271 12/22/2017 U.S. BANK 23,428.58Accounts Payable Check 155272 12/22/2017 ULTREX BUSINESS PRODUCTS 129.22Accounts Payable Check 155273 12/22/2017 ULTREX LEASING 273.80Accounts Payable Check 155274 12/22/2017 UNITED STAFFING ASSC., INC.1,969.13Accounts Payable Check ITEM NUMBER: A-2 DATE: 01/23/18 ATTACHMENT: 1 Page 18 of 242 Check Number Check Date Vendor Description Amount City of Atascadero Disbursement Listing For the Month of December 2017 155275 12/22/2017 UNIVAR USA, INC.11,238.44Accounts Payable Check 155276 12/22/2017 USA BLUE BOOK 85.86Accounts Payable Check 155277 12/22/2017 VERDIN 22,911.47Accounts Payable Check 155278 12/22/2017 VERIZON WIRELESS 440.43Accounts Payable Check 155279 12/22/2017 WELL SEEN SIGN CO., LLC 327.35Accounts Payable Check 155280 12/22/2017 WEST COAST AUTO & TOWING, INC.1,326.01Accounts Payable Check 155281 12/22/2017 WESTERN JANITOR SUPPLY 362.34Accounts Payable Check 155282 12/22/2017 WILKINS ACTION GRAPHICS 28.02Accounts Payable Check 155283 12/22/2017 WONDRIES FLEET GROUP 32,324.05Accounts Payable Check 155284 12/22/2017 WOOLERY, JONATHAN 1,600.00Accounts Payable Check 155285 12/22/2017 WULFING'S BACKGROUND & POLYGR 1,400.00Accounts Payable Check 155286 12/22/2017 KAREN B. WYKE 240.00Accounts Payable Check 155287 12/22/2017 ZEE MEDICAL SERVICES CO.107.64Accounts Payable Check 155288 12/28/2017 ATASCADERO MID MGRS ORG UNION 40.00Payroll Vendor Payment 155289 12/28/2017 ATASCADERO POLICE OFFICERS 1,305.00Payroll Vendor Payment 155290 12/28/2017 ATASCADERO PROF. FIREFIGHTERS 1,050.85Payroll Vendor Payment 155291 12/28/2017 MASS MUTUAL WORKPLACE SOLUTION 10,500.50Payroll Vendor Payment 155292 12/28/2017 NATIONWIDE RETIREMENT SOLUTION 571.23Payroll Vendor Payment 155293 12/28/2017 NAVIA BENEFIT SOLUTIONS 972.74Payroll Vendor Payment 155294 12/28/2017 NAVIA BENEFIT SOLUTIONS 50.00Payroll Vendor Payment 155295 12/28/2017 SEIU LOCAL 620 921.78Payroll Vendor Payment 155296 12/28/2017 VANTAGEPOINT TRNSFR AGT 106099 337.31Payroll Vendor Payment 155297 12/28/2017 VANTAGEPOINT TRNSFR AGT 304633 4,595.81Payroll Vendor Payment 2805 12/29/2017 STATE DISBURSEMENT UNIT 335.08Payroll Vendor Payment 2806 12/29/2017 HEALTHEQUITY, INC.5,775.00Payroll Vendor Payment 2807 12/29/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 22,086.08Payroll Vendor Payment 2808 12/29/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 36,188.21Payroll Vendor Payment 2809 12/29/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 760.85Payroll Vendor Payment 2810 12/29/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 1,846.61Payroll Vendor Payment 2811 12/29/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,460.41Payroll Vendor Payment 2812 12/29/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 2,103.20Payroll Vendor Payment 2813 12/29/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 4,405.06Payroll Vendor Payment 2814 12/29/2017 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEM 7,546.21Payroll Vendor Payment $1,921,547.28 ITEM NUMBER: A-2 DATE: 01/23/18 ATTACHMENT: 1 Page 19 of 242 ITEM NUMBER: B-1 DATE: 01/23/18 Atascadero City Council Staff Report – Community Development Department La Plaza Development Road Closure and Tentative Map RECOMMENDATION: Council adopt Draft Resolution approving a tentative subdivision map and establishing a road closure of Atascadero Mall and the road abandonment of portions of Atascadero Mall and El Camino Real to allow the development of a public plaza and facilitate the development of the La Plaza Mixed -Use Project. DISCUSSION: The Planning Commission approved the La P laza Mixed-Use Project (Project) on November 21, 2017. The Project includes:  One three story building with 9,000 square feet (sf ) of commercial space on the first floor and 40 residential units (condominiums) on the 2nd and 3rs floors; and  One three-story building with commercial space on the ground floor and 9,070 sf of office space on 2nd and 3rd floors. A component of the Project will further the goals of the Downtown Revitalization plan by facilitating the development of a public plaza in the location of Atascadero Mall, directly across from Sunken Gardens Park. This requires the vehicular closure of Atascadero Avenue (Atascadero Mall) to accommodate the plaza improvements. A 20-foot wide vehicular access road would be preserved in order to provide access from El Camino Real to the existing auto repair business at 6700 El Camino Real. The plaza space would remain a publicly owned space. Action by the City Council includes the tentative subdivision map, which includes the action to vacate (Abandon) and close roadways. The completion of the road closure and abandonment of the roadway would occur with recordation of the map following completion of necessary improvements. Tentative Subdivision Map Page 20 of 242 ITEM NUMBER: B-1 DATE: 01/23/18 The applicant is proposing a tentative parcel map that combines the underlying seven (7) lots and proposes to combine them into four (4) parcels, with the ability for two (2) of the four (4) parcels to be further subdivided into air space condominiums through the final map process. A total of 40 air space res idential condominium units and eight (8) air space commercial condominium spaces are proposed. The tentative map has been reviewed for consistency with the Atascadero Municipal Code, the California Subdivision Map Act, and the California Street and Highways Code because of the proposed vacancies of right-of-way. The planning Commission recommended approval of the map at their hearing on November 21, 2017. Road Closure and Road Abandonment There are three different portions of right -of-way that are proposed for either vehicle closure or abandonment. 1. Abandonment of right-of-way that includes a portion of Atascadero Mall, on a parcel that the applicant owns in fee (pays property taxes). 2. Abandonment of excess right-of-way (landscape and sidewalk easement) on El Camino. This portion of right-of-way was recommended for abandonment as part of the former La Plaza Project and is currently an easement on private property. 3. Closure of approximately 66 feet of right-of-way to accommodate the plaza. The plaza would remain publicly owned as right-of-way, but would be closed to vehicular traffic with the exception of a 20-foot wide access road fronting La Rosa’s Automotive. As a part of the 2013 (Hoff) La Plaza Mixed-Use approval, the City Council recommended approval of a road abandonment of a portion of El Camino Real and Atascadero Mall. The recommended action on the current project would help to complete that original recommendation. This abandonment involves an easement along El Camino Real and a portion of righ t-of-way adjacent to Atascadero Avenue. The road abandonment can be completed through the “Road Vacation” procedure, as specified in the Streets and Highways Code, and be completed through recordation of the Parcel Map for the Project. The pedestrian plaza would connect the existing pedestrian undercrossing at Highway 101. The applicant is required to pay Parkland Facilities Impact Fees for all residential units and new office and retail space. Proposed plaza improvements constructed by the applicant would qualify for Park development impact fee credits. The proposed plaza improvements implement the City’s Downtown Revitalization Plan. Page 21 of 242 ITEM NUMBER: B-1 DATE: 01/23/18 A. Vacating a Public Use Easement along El Camino Real Along El Camino Real there is a public easement currently used as a planting strip adjacent to the back of sidewalk. Proposed development of the Project is located within this easement. This easement is no longer needed for public purposes. The property beneath the easement is already privately owned by the owner of the La Plaza property. B. Vacating a portion of right-of-way within Atascadero Avenue The subject portion of right-of-way, along the north side of Atascadero Mall Avenue , has curb, gutter and sidewalk, and a paved street. The abandonment (road vacation) includes the right-of-way (0.24 acres) adjacent to the City owned parcel that housed the Main Street building. This property is already owned by Mike Zappas and the abandonment would simply result in the removal of the road easement (right-of-way). The publicly owned property that included the Main Street building site and the road portion adjacent to La Rosa’s Automotive would remain public property but would be closed to vehicular traffic and improved as plaza space. 10 foot road and landscape easement on El Camino Real Right-of-Way abandonment over Atascadero Avenue. (Atascadero Mall) Portion of Atascadero Avenue to be closed to vehicular traffic but remain public right-of-way. A B C Page 22 of 242 ITEM NUMBER: B-1 DATE: 01/23/18 C. Partial vehicular closure of remaining right-of-way within Atascadero Avenue. The City will maintain the right-of-way from the center City owned parcel to the eastern curb edge. A portion of this right-of-way will be developed as a public pedestrian plaza. A 20-foot wide portion will be retained for vehicular use to maintain access to La Rosa’s Automotive, as shown on the exhibit below. Proposed Plaza Plan Abandonment and Vehicular Closure Process Right-of-way abandonments are governed by the California Street s and Highways Code and the Atascadero Municipal Code. In order for the proposed abandonment to be approved, the Project must comply with the provisions and requirements set forth in each code section. 20-foot vehicular access to remain Plaza Page 23 of 242 ITEM NUMBER: B-1 DATE: 01/23/18 Requirements for vacating a road are found in the Streets and Highways Code, Section 8332: 8324 – California Streets and Highways Code (a) At the hearing, the legislative body shall hear the evidence offered by persons interested. (b) If the legislative body finds, from all the evidence submitted, that the street, highway, or public service easement described in the notice of hearing or petition is unnecessary for present or prospective public use, the legislative body may adopt a resolution vacating the street, highway, or public service easement. The resolution of vacation may provide that the vacation occurs only after conditions required by the legislative body have been satisfied and may instruct the clerk that the resolution of vacation not be recorded until the conditions have been satisfied. Requirements for closing a road to vehicular traffic are found in the Streets and Highways Code, Section 1920: 1920 – California Streets and Highways Code: When the governing body of a city by resolution or ordinance removes a street from public use, or closes it to vehicular or pedestrian traffic, such resolution or ordinance may set forth such minimum maintenance requirements, including the maintenance of drainage, for the street as the governing body determines are necessary for the public safety. City Requirements California Government Code Section 65402 requires that all abandonments be consistent with the legislative bodies General Plan, as follows: “If a general plan or part thereof has been adopted…no real property shall be…vacated or abandoned…until the location, purpose and extent of such…street vacation or abandonment…has been submitted to and reported upon by the planning agency as to the conformity with said general plan or part thereof.” El Camino Real is identified in the General Plan Circulation and Bikeway/Trail diagrams as an arterial road. Atascadero Avenue is identified in the General Plan Circulation and Bikeway/Trail diagrams as a local road. Only one business, La Rosa’s Automotive (a non-conforming land use) relies upon Atascadero Avenue for access. The road closure would not eliminate the access to this business. Conclusion: Page 24 of 242 ITEM NUMBER: B-1 DATE: 01/23/18 The Streets and Highways Code regulates the road abandonment process which can also be completed through the subdivision map process. With the La Plaza project, the completion and recordation of the abandonment will be perfected through the subdivision map process with the recordation of the Parcel Map. The action by the Council at this time does two things: 1. Allows the future removal of road easements (abandonment) over private property along El Camino Real and Atascadero Mall. These easements would be removed by the recordation of a final map following completion of necessary improvements. The final map will return to Council for review prior to recorda tion. Since the road easement is on private property, no property would change hands. 2. Allows for the future closure of a portion of Atascadero Mall to allow a public plaza. The road closure would result in the vehicular closure of the southwesterly portion of Atascadero Mall to allow the development of a public plaza. The road closure only relates to vehicle and this land would remain publicly owned and accessible. The Public Works Department has evaluated Atascadero Avenue and has determined that the proposed improvements are sufficient to support the surrounding area at build-out. Therefore, abandonment of the northern portion of the right -of-way would be consistent with the General Plan street classification and would maintain sufficient traffic capacity for future build-out. Project conditions provide for a public access and utility easement across the Atascadero Avenue road area prior to abandonment. This easement has been prepared and will be recorded prior to Council action. A condition has also been added requiring any buildings or structures to be located outside of the easement. Staff has determined that when a right-of-way or portion thereof is abandoned, the zoning shall become the same as the adjacent zoning designation. The requested abandonment will be for the benefit of the adjacent parcel and will become part of the Downtown Commercial zoned parcel. No new parcels will be created as a result of this abandonment as the applicant already owns the land within the area to be abandoned on Atascadero Mall. FISCAL IMPACT: The proposed actions will help facilitate the development and success of the downtown core and the La Plaza Mixed-Use Project will result in a positive economic impact for all business sectors within the downtown. The removal of the right-of-way from City maintenance will slightly reduce the inventory of road right -of-way which in turn will reduce long term maintenance costs. ALTERNATIVES: Page 25 of 242 ITEM NUMBER: B-1 DATE: 01/23/18 1. The Council may determine that more information is necessary prior to taking action and may refer the item back to staff with specific direction to return to Council for action at a later date. 2. The Council may choose to alter the right-of-way closure or abandonment. However, such a decision may have implications to the La Plaza Mixed-Use Project or to the proposed plaza use of the right -of-way. ATTACHMENTS: 1. Draft Resolution 2. La Plaza Development Plans Page 26 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1 DRAFT RESOLUTION RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, APPROVING TENTATIVE PARCEL MAP AT 17-0088, VACATING A PORTION OF RIGHT-OF-WAY FOR ATASCADERO AVENUE AND APPROVING A VEHICULAR CLOSURE OF ATASCADERO AVENUE FOR THE CONSTRUCTION OF A PUBLIC PEDESTRIAN PLAZA PURSUANT TO SECTION 12920 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE LA PLAZA DOWNTOWN DEVELOPMENT Z3 LLC (PLN 2017-1649) WHEREAS, an application has been received from Z3 LLC, Owner / Applicant (8189 San Dimas Lane, Atascadero, CA 93422) to develop the property with a Mixed-Use commercial/residential project, subdivide the property for condominium purposes and abandon an approximate 0.11 acre portion of pedestrian and landscape easement contiguous to the El Camino Real Right-of-Way; abandon a portion of right-of-way, which is approximately 0.24 acres of Atascadero Avenue (also referred to as “Atascadero Mall”) northwest of the existing median as shown on, Atascadero Colony Subdivision, City of Atascadero, County of San Luis Obispo, State of California and filed for record on October 21, 1914 in Book 4 at Page 32 of Maps; and close, to vehicular traffic, the southeasterly portion of Atascadero Avenue (Mall), with the exception of a 20-foot strip contiguous to the southeasterly property; and WHEREAS, the current General Plan Designation and Zoning Designation is Downtown Commercial and right-of-way; and WHEREAS, the Official City of Atascadero Land Use and Zoning Maps reflects a portion of El Camino Real as right-of-way and this portion of right-of-way has been quitclaimed by the City of Atascadero through City Council Resolution 06-95; and WHEREAS, the proposed abandoned portion of the right-of-way on Atascadero Avenue (Mall) is shown as a portion of Lot 18, Block H-B, Atascadero Colony Subdivision, City of Atascadero, County of San Luis Obispo, State of California and filed for record on October 21, 1914 in Book 4 at Page 32 of Maps, approximately 0.24 acres, will become a part of the adjacent property currently zoned Downtown Commercial and is not needed for present or prospective public street purposes; and WHEREAS, the proposed abandoned public use easement, along El Camino Real, which is approximately 0.11 acres was created by an offer of dedication per Official Record 88-O.R.-114 and will become a part of the adjacent property currently zoned Downtown Commercial; and Page 27 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1 WHEREAS, a portion of Atascadero Avenue right of way (width of 20 feet), as shown on said Atascadero Colony Subdivision map, is intended to continue vehicular access to private property currently utilized for La Rosa’s automotive; and WHEREAS, the project is in conformance with the Circulation Element of the General Plan and all other applicable General Plan policies; and WHEREAS, an Initial Study and proposed Mitigated Negative Declaration, Environmental Document No. 2017-0018 was prepared for the project and made available for public review in accordance with the requirements of the California Environmental Quality Act (CEQA); and WHEREAS, the laws and regulations relating to the preparation and public notice of environmental documents, as set forth in the State and local guidelines for implementation of the California Environmental Quality Act (CEQA) have been adhered to; and WHEREAS, the Planning Commission held a duly noticed public hearing to consider the proposed Road Abandonment and closure on November 21, 2017, as part of a tentative subdivision map (AT 17-0088) that included the said abandonments at 6:00 p.m. and considered testimony, reports from staff, the applicants, and the public; and WHEREAS, the City Council held a duly noticed public hearing to consider the proposed Road Abandonment and closure on January 23, 2018, at 6:00 p.m. and considered testimony, reports from staff, the applicants, and the public. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero: SECTION 1. The City Council hereby makes the following findings with respect to approval of a tentative map: A. Findings for Approval of Tentative Parcel Map 1. FINDING: The proposed subdivision, together with the provisions for its design and improvement, is consistent with the General Plan and the proposed Zone Text Change Amendment (Government Code§§ 66473.5 and 66474(a) and (b)). FACT: The proposed subdivision has been designed and includes proposed improvements that are consistent with the City’s adopted General Plan, in addition to the requirements that have been considered for the adoption of the Master Plan of Development. 2. FINDING: The site is physically suitable for the type of development (Government Code§ 66474(c)). FACT: The proposed site is suitable for this type of development as the grades are gently sloping. Based on the existing grades and proposed grading plan, the proposed subdivision contains a number of parcel and ultimately a number of residential air space condominiums and non-residential air space condominiums on Page 28 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1 Parcels 2 and 3 that are consistent with the density of the underlying Downtown Commercial (DC) zoning district. 3. FINDING: The site is physically suitable for the proposed density of development (Government Code § 66474(d)). FACT: The site is a development of formerly developed commercial properties within the City’s Downtown Core. The proposed development is consistent with the proposed density within the Downtown Commercial zoning district with an appropriate mix of uses. Therefore, the project is consistent with the surrounding neighborhood and is suitable for the proposed density. 4. FINDING: The design of the subdivision or the proposed improvements will not cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat (Government Code § 66474(e)). FACT: The proposed project has been analyzed, consistent with the California Environmental Quality Act (CEQA), through certified Mitigated Negative Declaration, Environmental Document No. 2017-0018. With the incorporation of mitigation measures, in addition to project conditions, the proposed project’s impacts will be mitigated to a threshold of less than significant, therefore the proposed project will not create substantial environmental damage. 5. FINDING: The design of the subdivision or the type of improvements will not cause serious health problems (Government Code § 66474(f)). FACT: The proposed project and the types of improvements include the subdivision of seven (7) existing parcels into four (4) parcels with two (2) parcels for future condominium purposes which includes a total 40 air space residential condominiums and eight (8) air-space non-residential condominiums. Because the proposed project is consistent with envisioned downtown development, and the improvements have been reviewed for consistency with the threshold established by the City, through adopted Ordinances, and City policies, the proposed project will not cause serious health problems. 6. FINDING: The design of the subdivision will not conflict with easements for access through or use of property within the proposed subdivision (Government Code § 66474(g)). FACT: The installation of public improvements are necessary, prior to recordation of a Final Map, in order to ensure orderly development of the surrounding area (Government Code § 66411.1(b) (2). 7. FINDING: The proposed project or use satisfies all applicable provisions of Title 9 of the Atascadero Municipal Code. Page 29 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1 FACT: Public improvements that are included, as conditioned by the City Engineer, are required and consistent with the City’s adopted General Plan, Master Facilities Plan, and Municipal Code. Therefore the proposed improvements are necessary to ensure orderly development of the surrounding area. SECTION 2. The City Council hereby makes the following findings with respect to a roadway abandonment pursuant to §8332 and vehicular closure pursuant §1920 to of the California Streets and Highways Code: A. Findings for Roadway Abandonment SHC §8332 1. At the hearing, the legislative body shall hear the evidence offered by persons interested. FACT. The City Council received oral testimony by the project applicant, project representative, and interested persons prior to making a recommendation for vacation of public easements and roadway abandonment. 2. The street, highway, or public service easement described in the notice of hearing or petition is unnecessary for present or prospective public use. FACT. The City Council, after hearing public testimony by persons interested in the vacation of a public easement along El Camino Real, and the abandonment of a portion of right-of-way on Atascadero Avenue, directly adjacent to the proposed project, finds that these portions of right-of-way and public easements are unnecessary for the present or prospective use of the public and therefore should be vacated through recordation of Tentative Parcel Map AT 17-0088. B. Findings for Vehicular Closure SHC §1920 1. The governing body of a city by resolution or ordinance removes a street from public use, or closes it to vehicular or pedestrian traffic, such resolution or ordinance may set forth such minimum maintenance requirements, including the maintenance of drainage, for the street as the governing body determines are necessary for the public safety. FACT. The City Council through approval of a resolution, finds that a portion of Atascadero Avenue shall be closed to vehicular traffic; however, public right-of-way shall be retained for the use of pedestrians, and bicyclists, and shall continue to be maintained by the City as necessary for public safety. SECTION 3. The City Council of the City of Atascadero approves the following with respect to roadway abandonment pursuant to §8332 and partial vehicular closure pursuant §1920 to of the California Streets and Highways Code: A. Abandoning a portion of the right-of-way for Atascadero Avenue (Mall) shown as a portion of Lot 18, Block H-B, Atascadero Colony Subdivision, City of Atascadero, County of San Luis Obispo, State of California and filed for record on October 21, 1914 in Book 4 at Page 32 of Maps, approximately 0.24 acres, converting this portion of property to a General Plan Land Use Designation of Downtown (D), and a Zoning District of Downtown Commercial (DC); Page 30 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1 B. Abandoning a public use easement, approximately 0.11 acres created by an offer of dedication per Official Record 88-O.R.-114 along El Camino Real and reverting this portion of property to a General Plan Land Use Designation of Downtown (D), and a Zoning District of Downtown Commercial (DC); C. Approximately 74-feet of right-of-way, owned and maintained by the City of Atascadero, as shown in Lot 8 of Block H-B, and a portion of Lot 6 Block E-B, Atascadero Colony Subdivision, City of Atascadero, County of San Luis Obispo, State of California and filed for record on October 21, 1914 in Book 4 at Page 32 of Maps shall be closed to vehicular traffic, with the exception of a 20-foot paved section directly southeast of Lot 6, Block E-B to construct a public pedestrian plaza. SECTION 3. Approval. The City Council of the City of Atascadero, in a regular session assembled on January 23, 2018, approved a tentative subdivision map, vacation of a public use easement along El Camino Real and partial Road Abandonment of Atascadero Avenue (Mall) and partial vehicular closure of Atascadero Avenue (Mall) subject to the following Exhibits attached hereto and incorporated herein by this reference: EXHIBIT A: Location Map EXHIBIT B: Road Abandonment Diagram EXHIBIT C: Tentative Parcel Map EXHIBIT D: Conditions of Approval On motion by Council Member ______________ and seconded by Council Member _________________, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO ______________________________ Tom O’Malley, Mayor ATTEST: ______________________________ Lara K. Christensen, City Clerk APPROVED AS TO FORM: ______________________________ Brian A. Pierik, City Attorney Page 31 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1A Exhibit A: Location Map RAB 2013-0020 Project Area Page 32 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1B Exhibit B: Road Abandonment diagram 10 foot road and landscape easement on El Camino Real Right-of-Way Abandonment over Atascadero Avenue. (Atascadero Mall) Portion of Atascadero Avenue to be closed to vehicular traffic. Page 33 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1C Exhibit C: Tentative Parcel Map Page 34 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1D Exhibit D Conditions of Approval City of Atascadero PLN 2017-1649 LA PLAZA DOWNTOWN DEVELOPMENT Tentative Parcel Map ROADWAY ABANDONMENT / PARTIAL VEHICULAR CLOSURE 6500 EL CAMINO REAL PARENT APN 030-193-001,003,017,016, 031,030,033 The following conditions of approval apply to the project referenced above. The conditions of approval are grouped under specific headings that relate to the timing of required compliance. Additional language within a condition may further define the timing of the required compliance. A. General Conditions. 1. The emergency services and facility maintenance costs listed below shall be 100% funded by the project in perpetuity. The service and maintenance costs shall be funded through a community facilities district established by the City at the developer's cost. The funding mechanism must be in place prior to or concurrently with acceptance of the final maps. The funding mechanism shall be app roved by the City Attorney, City Engineer and Administrative Services Director prior to acceptance of any final map. The administration of the above mentioned funds shall be by the City. Developer agrees to participate in the community facilities district and to take all steps reasonably required by the City with regard to the establishment of the district and assessment of the property.  All Atascadero Police Department service costs to the project.  All Atascadero Fire Department service costs to the project.  Off-site common City of Atascadero park facilities maintenance service costs related to the project. ☐ PLN 2. Prior to recordation of the Parcel Map, the Applicant shall establish a benefit maintenance assessment district, Property Owners’ Association, or similar funding mechanism approved by the City, to provide sufficient funds on an annual basis to pay for the operation, maintenance and future replacement of privately owned -in- common subdivision improvements. The engineer of record shall prepare and submit an estimated operating budget and capital improvement replacement analysis for review and approval by the City Engineer, prior to recordation of the Parcel Map. ☐ PLN 3. Prior to recording the Final Map, the Applicant shall have the m ap reviewed by the public utility providers for power, telephone, gas, cable TV, and the A tascadero Mutual Water Company. The Applicant shall obtain a letter from each utility company stating that the easements and rights -of-way shown on the map for public utility purposes are acceptable. ☐ PWD 4. Documents that the City of Atascadero requires to be recorded concurrently with the Final Map (e.g.: off-site rights-of-way dedications, easements not shown on the map, agreements, etc.) shall be listed on the certificate sheet of the map. ☐ PWD 5. The City of Atascadero may require an additional map sheet for information purposes in accordance with the Subdivision Map Act. ☐ PWD 6. The El Camino Real pedestrian entry/exit doors serving any building shall not swing into the public right-of-way more than one foot. ☐ PWD Page 35 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1D 7. The proposed waterfall structure in front of Building A shall be located entirely within the subject property and shall not encroach into the public right-of-way. ☐ PWD 8. Public improvements required of this subdivision may be deferred to the time of development of each parcel. The relocation of the existing public sewer main shall be completed prior to issuance of, or, in conjunction with the issuance of building permits for the southerly most building (Tentative Parcel 3). ☐ PWD 9. Rights-of-way acquisitions and/or abandonments shall be completed in accordance with City regulations, the Streets and Highways Code, the Subdivision Map Act, and to the satisfaction of the City Engineer. Public rights-of-way abandonments completed through the Parcel Map process shall be adequately identified on the certificate sheet of the map as well as on subsequent map sheets. ☐ PWD 10. All plans shall contain the City of Atascadero "Standard Notes for Improvement Plans" on file in the City Engineer's office. ☐ PWD B. Roadway Improvements 11. Construction of the new driveway approach, northwesterly of Building A, requires removal of the existing driveway approach serving the adjacent northwesterly property. Vehicular access to this property shall be combined with the subject property. ☐ PWD 12. Pedestrian ramps on El Camino Real shall be constructed on each side of the street type entrance that provides vehicular access to the existing gas station property (southerly of the subject property). ☐ PWD 13. The 20-feet wide vehicular access proposed on the southerly half of Atascadero Mall shall be extended westerly to a point that provides adequate vehicular access to the adjacent southerly property, to the satisfaction of the City Engineer and Community Development Director. ☐ PWD 14. Improvements within Atascadero Mall shall include pedestrian channelization (including physical barriers such as raised planters, decorative fencing or short walls, planter islands, etc.) necessary to direct pedestrians exiting the tunnel through the open plaza area, to the satisfaction of the City Engineer and Community Development Director. ☐ PWD 15. The applicant shall coordinate with the Regional Transit Authority regarding the relocation and modification to the existing bus shelter and bus stop. Final location shall be approved by the Regional Transit Authority and the City Engineer. ☐ PWD 16. Roadway signing, striping, and traffic signal modifications shall be in accordance with the California Manual on Uniform Traffic Control Devices (CA-MUTCD) and shall be designed and constructed to the satisfaction of the City Engineer. ☐ PWD C. Wastwater Collection System 17. The public gravity sewer system within the subject property shall be modified in accordance with City Standards and to the satisfaction of the City Engineer. The new sewer main system shall be offered to the public and shall include a 20 -feet wide public sewer easement. The wastewater collection system shall be designed and constructed in accordance with City standards and specifications, to the satisfaction of the City Engineer. ☐ PWD 18. Gravity sanitary sewer (SS) mains shall terminate in manholes. ☐ PWD Page 36 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1D 19. The on-site sewer laterals shall be privately owned and maintained by individual lot owners. ☐ PWD 20. Each lot served by the wastewater collection system shall pay all sewer fees prior to the issuance of a building permit. ☐ PWD D. Stormwater 21. The project shall be designed and constructed in accordance with the post - construction storm water management regulations in accordance with City Standards and the State RWQCB Resolution R3-2013-0032. ☐ PWD 22. Common drainage basins (serving multiple lots) shall be designed to desilt, detain and meter storm flows in accordance with City regulations. ☐ PWD 23. Storm Sewer shall be of either cast-in-place or precast reinforced concrete pipe, polyvinyl chloride pipe, high density polyethylene pipe or an approved equal.  Minimum pipe diameter allowable on any storm drain within a roadway or road right-of-way shall be 18" diameter. A lesser size may be used for down drains on fill slopes if approved by the City Engineer.  Minimum design velocity in closed conduits shall be 2 f.p.s. when conduit is flowing to capacity and should not exceed 15 f.p.s.  Closed conduits shall be designed to convey the 10-year storm flow with gravity flow, the 25-year storm flow with head, and provide a safe overland route for the conveyance for the 100-year storm overflow.  Manholes or junction boxes, entry to which does not fall in the gutt er line, must have standard 24" diameter manhole covers. Those falling in the gutter line may use the standard grated manhole cover and serve also as an inlet manhole. ☐ PWD 24. Prior to approval of subdivision improvement plans, the project engineer shall provide calculations and a report confirming compliance with City regulations and the low-impact development requirements. ☐ PWD 25. When a Storm Water Operation - Maintenance Plan (OMP) is required for an individual lot or group of lots, the City Engineer can require the OMP to be recorded as an agreement against each property. When recordation of an OMP agreement is required, the agreement shall contain provisions allowing the City to enter the property, following reasonable notice to the property owner or tenant, to conduct an inspection of the storm water system and post-construction storm water management controls. ☐ PWD 26. When an OMP is required, the OMP shall include a section addressing annual inspection and reporting to the City by a third party, to the satisfaction of the City Engineer. ☐ PWD E. Easements 27. On-site easements for ingress, egress, pedestrian traffic, drainage, utilities, etc., shall be shown on the Parcel Map, or, created by separate easement documents to be recorded concurrently with the Parcel Map. ☐ PWD 28. Driveways serving more than one lot shall require an easement for ingress/egress, public & private utilities, and drainage, to the satisfaction of the City Engineer. ☐ PWD 29. Drainage easements shall be dedicated over areas containing drainage improvements that benefit or serve more than one property. The determination as ☐ PWD Page 37 of 242 ITEM NUMBER: B-1 DATE: ATTACHMENT: 01/23/18 1D to whether the easement is private or offered to the public will be determined by the City Engineer prior to approval of the subdivision improvement plan and Parcel Map. 30. Wherever an easement is created for commonly owned or operated improvements for the benefit of more than one lot, there shall also be created a maintenance and operations agreement, to the satisfaction of the City Engineer and City Attorney. ☐ PWD 31. Easements that are not intended to continue in perpetuity shall not be shown on the Parcel Map and shall be recorded by separate instrument. ☐ PWD F. Utilities 32. New utility distribution systems and services shall be constructed underground, to the satisfaction of the City Engineer. ☐ PWD 33. Each parcel shall be served with separate services for water, sewer, gas, power, telephone and cable TV. Utility laterals shall be located and constructed to each lot in accordance with City Standards and Standard Specifications ☐ PWD The following conditions of approval apply to the project referenced above. The conditions of approval are grouped under specific headings that relate to the timing of required compliance. Additional language within a condition may further define the timing of the required compliance. G. The following conditions shall be satisfied PRIOR to Abandonment of Right -of-Way, or at the time specified in the condition. 1. Rights-of-way acquisitions and/or abandonments shall be completed in accordance with City regulations, the Streets and Highways Code, the Subdivision Map Act, and to the satisfaction of the City Engineer. ☐ PWD 2. Easements that are not intended to continue in perpetuity shall not be shown on the Parcel Map and shall be recorded by separate instrument. ☐ PWD 3. Right-of-Way abandonment and public use easements shall be extinguished upon recordation of Tentative Parcel Map AT 17-0088. ☐ PWD 4. Remaining Right-of-Way shall remain a City Maintained street for maintenance purposes. ☐ PWD **END CONDITIONS** Page 38 of 242 MASTER PLAN OF DEVELOPMENT / SITE PLAN ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 39 of 242 ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 40 of 242 LANDSCAPE PLAN ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 41 of 242 Elevations / Floor Plan / Sections ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 42 of 242 ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 43 of 242 ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 44 of 242 ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 45 of 242 ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 46 of 242 ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 47 of 242 COLORS AND MATERIALS BOARD ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 48 of 242 SIGNAGE ITEM NUMBER: B-1 DATE: 01/23/18 ATTACHMENT: 2 Page 49 of 242 GRADING AND DRAINAGE PLAN ITEM NUMBER: B-1DATE: 01/23/18ATTACHMENT: 2 Page 50 of 242 ITEM NUMBER: C-1 DATE: 01/23/18 Atascadero City Council Staff Report - Public Works Department Approval of Draft Conceptual Plans and Procurement for Playground Replacements and Upgrades at Atascadero Lake Park RECOMMENDATIONS: The Parks and Recreation Commission recommends Council: 1. Approve draft conceptual plans for replacement of youth playground structure, swing sets, and other upgrades including poured -in-place rubberized surfacing at Atascadero Lake Park. 2. Authorize the City Manager to execute a contract for $280,013.05 with Great Western Recreation to furnish and construct playground replacements and upgrades at Atascadero Lake Park. 3. Authorize the Director of Public Works to file a Notice of Complet ion with the County Recorder upon satisfactory completion of the project. DISCUSSION: Background: At their November 28, 2017 meeting, Council allocated $280,000 of Housing Related Parks Grant funds toward replacement of the youth playground equipment and swings at the Lake Park. The youth playground structure is the main playground structure at the Lake Park and is geared toward youth, ages 5 to 12. It is at the end of its useful life (20+ years) and is slowly shrinking in size as components break and replacement parts are no longer available or no longer compliant with current playground standards. The existing swing sets are also nearing the end of their useful lives and are out of compliance for fall protection. Staff has been coordinating design options for playground replacements and upgrades with Great Western Recreation - GameTime playgrounds are designed to “inspire imaginations, and encourage people of all ages and abilities to be more active”. The new playground structure is designed to be much more interactive and to capture imaginations and spark spontaneity; all while contributing to the development of large and small motor skills, problem-solving abilities and muscle tone by getting children moving in a safe but fun environment. Page 51 of 242 ITEM NUMBER: C-1 DATE: 01/23/18 Great Western Recreation prepared several conceptual plan versions for the youth playground unit and swing sets that were reviewed by the Parks and Recreation Commission on December 13, 2017, then revised and reviewed with the Commission again on January 10, 2018. This process was very collaborative and involved detailed discussions on various options and components. The attached conceptual plans reflect the consensus of the Commission and staff, which are further recommended by the Commission for City Council approval. The proposed equipment provides more opportunities for play, while meeting all current safety and fall requirements. The conceptual plans show a youth play structure which is larger than the existing structure and consists of one small and one taller climbing structure connected with an enclosed, flexible rope bridge. Several options for climbing to and from the ground into the structures exist, including floating stepping stones, ladders, stairs, an arch and stumps. The structures contain a total of 5 slides including simple straight slides and longer twisting enclosed slides, allowing children to return to the ground quickly. For challenging a child’s agility, there will be a balance log that leads to a wobbling bridge and twisting rope net unit with a rock boulder feature. Swing sets will include four regular belt swings, two toddler swings, and two adaptive swings which allow two individuals to swing together. This playground will add to the enrichment of the Atascadero Lake Park and provide more opportunities for play. The existing toddler play structure will remain in-place, as-is, while the youth unit and swing sets are proposed to be replaced. The overall perimeter of the playground will not change and a poured-in-place rubberized surface is proposed to be constructed within the concrete perimeter. This surface will comply with fall protection and provide ADA accessibility. Great Western Recreation is the GameTime vendor in our region and the designated vendor on the US Communities Cooperative Purchasing Venture. In accordance with the purchasing policy, the formal bid process may be bypassed when there are other governmental contracts that were competitively bid. US Communities Cooperative Purchasing Venture qualifies under this exemption. The cost of the playground equipment and installation is $333,340.42 plus tax and shipping. If the equipment is ordered prior to January 31, 2018, the City will receive a $72,662 grant from GameTime bringing the total cost to $280,013.05. A representative from Great Western Recreation is anticipated to be present at this meeting to present the draft conceptual plans and answer any questions. FISCAL IMPACT: Approval of this item will result in expenditures of approximately $280,000 in HRP grant monies. Page 52 of 242 ITEM NUMBER: C-1 DATE: 01/23/18 ALTERNATIVE: The Council may suggest modifications or revisions to the conceptual plans. ATTACHMENT: Draft conceptual plans for playground replacements and upgrades Page 53 of 242 Atascadero, CA Lake Park Option 7 Red Roof Great Western Recreation | Tyler Kyriopoulos 435-760-5103 tyler@gwpark.com g ITEM NUMBER: C-1 DATE: 01/23/18 ATTACHMENT: 1 Page 54 of 242 Atascadero, CA Lake Park Option 7 Red Roof Great Western Recreation | Tyler Kyriopoulos 435-760-5103 tyler@gwpark.com ITEM NUMBER: C-1 DATE: 01/23/18 ATTACHMENT: 1 Page 55 of 242 ITEM NUMBER: C-2 DATE: 01/23/18 Atascadero City Council Staff Report – Administrative Services Department Fiscal Year 2016-2017 Audit RECOMMENDATION: Council review and accept the financial audit for the period ended June 30, 2017. 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 performed well overall during the fiscal year 2016-2017. The Council’s continued focus on economic development, the forward movement of the economy and ongoing fiscal stewardship by the Council and staff are the primary reasons for the positive results. Compared to the most recent Seven-Year Projection that was adopted in June 2017 as part of the 2017-2019 Budget, the City’s General Fund finished the year very close to expectations. A few of the major revenue sources were down slightly, and others were up slightly. Employee services and operating costs were right on projections. Overall, the City is right on target with the June 2017 Seven-Year Projection. General Fund Activity, Excluding Measure F-14 Activity General Fund revenues were just under $20.5 million for the fiscal year. General Fund expenditures were about $20.7 million during the year. The net change in fund balance for the General Fund was a decrease of about $234,000. The June 2017 Seven-Year Projection estimated a net loss of $545,460. This is a positive difference between actual and projections of about $311,500. These figures exclude Measure F-14 Activity. General Fund Activity - Measure F-14 Activity Measure F-14 Sales Tax activity is included in the General Fund for legal and accounting reasons, but it is broken out in this discussion for more transparency. Measure F-14 revenue was about $2.1 million for the fiscal year. Expenditures were about $2.1 million. The net change in fund balance was $12,000. Page 56 of 242 ITEM NUMBER: C-2 DATE: 01/23/18 All General Fund activity (Measure F-14 and non-Measure F-14) combined to decrease the General Fund by about $246,000 during the year. The General Fund balance at the end of the year, including the Measure F-14 funds, was $11,392,595. General Fund activity for fiscal year 2016-2017 is summarized in the following chart: Measure F-14 Non-Measure F-14 Total General Fund Revenues 2,125,990$ 20,466,086$ 22,592,076$ Expenditures 2,138,147 20,700,041 22,838,188 Net changes in Fund balance (12,157) (233,955) (246,112) Beginning Fund Balance 2,373,900 9,264,807 11,638,707 Ending Fund Balance 2,361,743$ 9,030,852$ 11,392,595$ Council’s long-term Financial Strategy, as further detailed in the City’s June 2017 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 201 6-2017 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 2015-2016 and 2016-2017 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. Page 57 of 242 ITEM NUMBER: C-2 DATE: 01/23/18 2015/2016 Actuals 2016/2017 Actuals % Change $ Change REVENUES: Property Tax 8,315,801$ 8,927,672$ 7.4%611,871$ Sales tax 3,812,457 3,620,027 -5.0%(192,430) Transient Occupancy Tax 1,238,431 1,337,528 8.0%99,097 Other Taxes 1,361,522 1,487,696 9.3%126,174 Intergovernmental 137,993 139,698 1.2%1,705 Grants 103,203 13,455 -87.0%(89,748) Service Charges Mutual Aid 758,524 473,670 -37.6%(284,854) Public safety 188,758 187,713 -0.6%(1,045) Development 1,114,383 1,271,174 14.1%156,791 Recreation, zoo, parks & pavilion 866,488 898,973 3.7%32,485 Interest 57,800 70,811 22.5%13,011 Adjustment to Market Value-GASB 31 47,886 (67,580) -241.1%(115,466) Interfund charges 804,164 936,813 16.5%132,649 Other 957,459 674,246 -29.6%(283,213) Transfers 391,090 494,190 26.4%103,100 Total revenues 20,155,959$ 20,466,086$ 1.5%310,127$ EXPENDITURES: Employee services (13,429,637)$ (14,213,908)$ 5.8%(784,271)$ (4,835,994) (4,897,676) 1.3%(61,682) Special purchases (370,934) (1,351,509) 264.4%(980,575) Capital outlay (713,773) (236,948) -66.8%476,825 Total expenses (19,350,338) (20,700,041) 7.0%(1,349,703)$ NET INCOME 805,621$ (233,955)$ Operating supplies & services GENERAL FUND COMPARATIVE INCOME STATEMENT Excluding Measure F-14 Activity Revenues Some notable deviations from the prior year on the revenue side are changes in Property Tax Revenue, Sales Tax Revenue, Transient Occupancy Tax, Mutual Aid activity and Other Revenues. Property Tax Revenue During the economic downturn, Property Tax Revenue hit the lowest level during fiscal year 2011-2012. Since that time, 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 7.4% increase from the 2015-2016 fiscal year to the 2016-2017 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. Page 58 of 242 ITEM NUMBER: C-2 DATE: 01/23/18 Detailed, comparative Property Tax Revenue information for the most recently completed two fiscal years is found below: 2015/2016 Actuals 2016/2017 Actuals % Change $ Change Secured Property Tax 5,403,114$ 5,712,108$ 5.7%308,994$ Property tax in lieu of VLF 2,450,630 2,596,002 5.9%145,372 Unsecured property tax 143,166 147,249 2.9%4,083 Supplemental property tax 143,312 193,007 34.7%49,695 Redevelopment agency distribution 181,523 283,066 55.9%101,543 Prior year secured and unsecured (5,680) (3,484) -38.7%2,196 Property tax penalities and interest (264) (276) 4.5%(12) Total revenues 8,315,801$ 8,927,672$ 7.4%611,871$ GENERAL FUND PROPERTY TAX REVENUE COMPARISON Sales Tax Revenue As indicated previously, 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 down 5% (about $192,000) over fiscal year 2015-2016. Fiscal year 2015-2016 revenue included a one-time bump for the final payment of the State’s “Triple Flip”. Outside of this adjustment, Sales Tax had a minimal but positive increase. 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 reflect more and more favorably on Sales Tax Revenue in the long-term. Transient Occupancy Taxes Transient Occupancy Tax (TOT) was up about $99,000, or 8%, over the prior year due to the Council’s continued efforts on tourism and coordinating efforts of the Atascadero Tourism Business Improvement District. Mutual Aid Revenue from Mutual Aid activity was down about $285,000 from the prior year, with a corresponding decrease in expenditures. Mutual Aid activity fluctuates based on the fire response needs during the year. Page 59 of 242 ITEM NUMBER: C-2 DATE: 01/23/18 Other Revenue The category of Other Revenue includes a number of rev enue sources such as donations and administrative charges. Other Revenue for fiscal year 2016-2017 was about $283,000 less than fiscal year 2015-2016, primarily due to some generous one- time donations that occurred in fiscal year 2015-2016. Expenditures Employee Services Employee Services actual costs for 2016-2017 were about 5.8% higher than in the prior year and were right on target with the June 2017 Seven -Year Projection. The fact that these costs are coming in as expected is especially relevant given the fact that Employee Services are the largest portion of General Fund Expenditures. Operating Supplies and Services When compared to the prior year, 2016-2017 expenditures were about $62,000 higher. However, actual results for 2016-2017 were only slightly under the June 2017 Seven - Year Forecast amounts. 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 the future. Less frequently, an alternative to purchasing the items has been identified. Included in General Fund Special Purchases is a City Council authorized transfer of $1,000,000 from the General Fund to the Building Maintenance and Replacement Fund. The City was contributing a modest amount of funding annually toward building replacement reserves, but that ceased in fiscal year 2009-2010, in order to close the gap between expenditures and decreasing revenues during the Great Recession. Th e 2016-2017 transfer will be held in the Building Maintenance and Replacement Fund reserves for future needs. General Fund Balance The General Fund balance at June 30, 2017, was about $11.4 million, or 50% 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 June 2017 Seven- Year Projection estimates the continued use of General Fund reserves through fiscal year 2022-2023. At no time are reserves expected to drop below the Council Policy minimum of 20% of general fund expenditures. Page 60 of 242 ITEM NUMBER: C-2 DATE: 01/23/18 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 t heir 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 2016-2017 Audited City Financial Statements 2. Independent Auditors’ Report on Internal Control Page 61 of 242 CITY OF ATASCADERO FINANCIAL STATEMENTS June 30, 2017 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 62 of 242 FINANCIAL STATEMENTS June 30, 2017 Tom O’Malley, MAYOR Roberta Fonzi, MAYOR PRO TEMPORE Charles Bourbeau, COUNCIL MEMBER Heather Moreno, COUNCIL MEMBER Brian Sturtevant, COUNCIL MEMBER Rachelle Rickard, CITY MANAGER Prepared by the Department of Administrative Services ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 63 of 242 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2017 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 ………………………………………………76 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Detail………………………………………………78 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - In Lieu Low/Moderate Income Housing Fund………………………………………………95 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Circulation System Fees Fund………………………………………………96 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Fire Aerial Vehicle Impact Fees Fund………………………………………………97 Schedule of Funding Progress for Postemployment Benefits Other Than Pensions……………………………………………………………………………………………98 i ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 64 of 242 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2017 Required Supplementary Information (continued): Schedule of the Local Government's Proportionate Share of the Net Pension Liability ……………………………………………………………………………………………………99 Schedule of Pension Contributions…………………………………………………………………………………………………………………………………………………………….100 Other Supplementary Information: Major Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - 2010 Bond Debt Service Fund………………………………………………101 Nonmajor Governmental Funds Overview………………………………………………………………………………………………………………………………………….102 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds………………………………………………………………………………………………………………107 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds…………………………………..………………112 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Supplemental Law Enforcement Services Fund…………………………………………………………………………………………………………………………….117 Atascadero Tourism Business Improvement District Fund……………………………………………………………………………………………………………………………………….118 Community Development Block Grant Fund………………………………………………………………………………………………………………………………..119 Tree Plant Fund………………………………………………………………………………………………………………………………………………………………120 Gas Tax Fund…………………………………………………………………………………………………………………………………………………………………..121 Local Transportation Fund……………………………………………………………………………………………………………………………………………..122 Street Assessment Fund……………………………………………………………………………………………………………………………………………………..123 General Government Facilities Fees Fund……………………………………………………………………………………………………………………………………..124 Storm Drainage Facilities Fees Fund…………………………………………………………………………………………………………………………………………….125 Law Enforcement Facilities Fees Fund…………………………………………………………………………………………………………………………………….126 Fire Facilities Fees Fund…………………………………………………………………………………………………………………………………………………………..127 Open Space Acquisition Fees Fund……………………………………………………………………………………………………………………………………………….128 Parkland Facilities Fees Fund………………………………………………………………………………………………………………………………………………………129 Public Facilities Fees Fund………………………………………………………………………………………………………………………………………………………130 Library Expansion Facilities Fees Fund………………………………………………………………………………………………………………………………………………131 Community Facilities District Fund…………………………...………………..…………………………………………………………………………………………..132 ii ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 65 of 242 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2017 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………….……………………………………………………………………………………………133 Apple Valley Landscape & Lighting Assessment District Fund…………………..…………………………………………………………………………………………134 Las Lomas Street & Storm Drain Assessment District Fund……………………...………………………………………………………………………………………135 Las Lomas Landscape & Lighting Assessment District Fund…………………………...……………………………………………………………………………………136 De Anza Street & Storm Drain Assessment District Fund…………………………..…………………………………………………………………………………137 De Anza Landscape & Lighting Assessment District Fund…………………………...…………………………………………………………………………………138 Capital Projects Fund……………………………………………………………………………………………………………………………………………………………139 2010 Bond Proceeds Master Agreement Fund……………………………………………………………………………………………………………………………………………………………140 Youth Center Construction Fund………………………………………………………………………………………………………………………………………….141 1992 Street Assessment Improvement Fund…………………………………………………………………………………………………………………………..142 Combining Statement of Net Position - Internal Service Funds……………………………………………………………………………………………………………………143 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds…………………………………………………………………..145 Combining Statement of Cash Flows - Internal Service Funds……………………………………………………………………………………………………………..147 iii ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 66 of 242 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, 2017, 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, 2017, 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. 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 1 ITEM NUMBER: C-2DATE: 01/23/18ATTACHMENT: 1Page 67 of 242 information on pages 76 through 97, the schedule of funding progress for post-employment benefits other than pensions on page 98, the schedule of proportionate share of net pension liability on page 99, and the schedule of contributions on page 100, 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 12, 2018, 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 12, 2018 2 ITEM NUMBER: C-2DATE: 01/23/18ATTACHMENT: 1Page 68 of 242 3 MANAGEMENT’S DISCUSSION AND ANALYSIS Fiscal Year Ended June 30, 2017 INTRODUCTION This discussion and analysis of the City of Atascadero’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2017. 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, 2017, by about $177.2 million. Of this amount, $130.1 million is net investment in capital assets, $37.7 million is restricted for various purposes, and $9.4 million is unrestricted.  Capital projects expenditures were more than the amount spent in the prior fiscal year by about $3.9 million due primarily to road projects and other capital projects such as the Centennial Bridge and Plaza and the ALPS Three Bridges Trailhead and Parking Lot.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $48.6 million, a decrease of about $428,000 from the prior fiscal year. Approximately $39.2 million of the total is not available for more spending because it represents amounts that are already obligated or restricted, including $16.8 million in advances receivables from the Successor Agency and $5.7 million in notes receivable for affordable housing. About $9.1 million of the ending fund balance is available for future obligations.  The City’s compensated absences due to employees increased by about $148,000, and the City’s debt increased by about $4.4 million. This increase was primarily due to the City’s change in CalPERS Net Pension Liability. For additional information, see Note 9 in the Notes to the Financial Statements.  At the end of the current fiscal year, unassigned fund balance for the general fund was $9,895,669 or 44% of total general fund expenditures, $2,361,743 of which is related to the Sales Tax Measure F-14 funding. The decrease in this unassigned fund balance from the prior year is $205,227, which is primarily due to planned use of reserves as a part of Council’s overall financial strategy. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 69 of 242 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2017 4 OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements presented herein include the activities of the City of Atascadero using the integrated approach as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34. Government-Wide Financial Statements The Government-W ide Financial Statements present a broad overview of the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business-type activities separately. These statements include all assets of the City (including infrastructure) as well as all liabilities (including long-term 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 Successor Agency identified in each community. In Atascadero, the City became the Successor Agency and holds these assets and liabilities in Private Purpose Trust. See Note 15 in the Notes to the Financial Statements for further details on the Successor Agency. The City has no component units that require discrete presentation in accordance with GASB Statement No. 14, as amended by GASB Statements No. 39, No. 61, and No. 80. Fund Financial Statements A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Atascadero, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds of the City are divided into two categories of activities – governmental and proprietary. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 70 of 242 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2017 5 OVERVIEW OF THE FINANCIAL STATEMENTS (continued) Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial Statements. However, unlike the Government-wide Financial Statements, Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of Governmental Fund Financial Statements is narrower than that of the Government-wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains multiple individual governmental funds. Information for the General Fund is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances. The General Fund, the In Lieu Low/Moderate Income Housing Fund, the Circulation System Fees Fund, the Fire Aerial Vehicle Impact Fees Fund, and the 2010 Bond Debt Service Fund are considered to be the major governmental funds. Data from the other nonmajor governmental funds are combined into a single, aggregated presentation. Individual fund data, including budgetary information, for each of these nonmajor governmental funds is provided in the combining financial statements under the supplementary information section. A budget comparison statement has been provided to demonstrate compliance with the budget. Budgetary information for the major governmental funds has been provided under the required supplementary information section. Proprietary Funds Proprietary Funds provide the same type of information as the business-type activities in the government-wide financial statements, except that the Proprietary Funds provide greater detail. The City maintains two types of Proprietary Funds: Enterprise Funds and Internal Service Funds. The City’s Enterprise Funds are the same as the business-type activities reported in the Government-wide Financial Statements: Transit and Wastewater. The City uses Internal Service Funds to report activities that provide supplies and services for the City’s other programs and activities. The City’s Internal Services Funds include the Technology Fund, the Building Maintenance and Replacement Fund, and the Vehicle and Equipment Replacement Fund. The Internal Service Funds are combined into one column within the Proprietary Funds statements and are combined with governmental activities in the Government- wide Financial Statements. Notes to the Basic Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 71 of 242 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2017 6 GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Atascadero, assets exceeded liabilities by about $177.2 million at the close of the most recent fiscal year. 2016-2017 Governmental Activities 2016-2017 Business-Type Activities 2016-2017 Total 2015-2016 Governmental Activities 2015-2016 Business-Type Activities 2015-2016 Total 59,979,533$ 10,693,780$ 70,673,313$ 59,456,836$ 10,643,587$ 70,100,423$ 129,146,060 15,247,271 144,393,331 127,024,659 15,606,829 142,631,488 Total assets 189,125,593 25,941,051 215,066,644 186,481,495 26,250,416 212,731,911 7,600,976 163,195 7,764,171 4,173,383 124,516 4,297,899 Total deferred outflows 7,600,976 163,195 7,764,171 4,173,383 124,516 4,297,899 3,752,417 360,297 4,112,714 3,613,478 309,662 3,923,140 39,886,263 633,743 40,520,006 35,571,198 577,310 36,148,508 Total liabilities 43,638,680 994,040 44,632,720 39,184,676 886,972 40,071,648 957,647 51,412 1,009,059 2,106,757 62,857 2,169,614 Total deferred inflows 957,647 51,412 1,009,059 2,106,757 62,857 2,169,614 114,912,430 15,247,271 130,159,701 113,511,857 15,606,829 129,118,686 37,662,122 - 37,662,122 37,874,167 - 37,874,167 (444,310) 9,811,523 9,367,213 (2,022,579) 9,818,274 7,795,695 Total net position 152,130,242$ 25,058,794$ 177,189,036$ 149,363,445$ 25,425,103$ 174,788,548$ Net position: Net investment in capital assets Restricted Unrestricted Current and other assets Capital assets Current liabilities Noncurrent liabilities Deferred outflows Deferred inflows The largest portion of the City’s net position (74%) reflects its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional 21% of the City’s net position represents resources subject to external restrictions on how they may be used. The remaining 5% ($9,367,214) is considered unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. There was an increase of $1,571,518 in unrestricted net position from fiscal year 2015-2016 to 2016-2017. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 72 of 242 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2017 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 $2.4 million. Information about changes in net position is summarized below: 2016-2017 Governmental Activities 2016-2017 Business-Type Activities 2016-2017 Total 2015-2016 Governmental Activities 2015-2016 Business-Type Activities 2015-2016 Total Revenues: Program Revenues Charges for services 3,228,842$ 2,165,440$ 5,394,282$ 3,331,208$ 2,160,494$ 5,491,702$ Operating grants and contributions 1,500,299 352,750 1,853,049 1,734,165 329,378 2,063,543 Capital grants and contributions 2,241,202 - 2,241,202 2,927,653 - 2,927,653 General Revenues: Secured and unsecured property taxes 9,684,656 - 9,684,656 8,995,183 - 8,995,183 Sales and use taxes 5,739,447 - 5,739,447 5,907,573 - 5,907,573 Other taxes 3,138,020 - 3,138,020 2,886,228 - 2,886,228 Motor Vehicle in Lieu 13,833 - 13,833 11,769 - 11,769 Investment Income 684,068 5,568 689,636 1,254,114 179,009 1,433,123 Total Revenues 26,230,367 2,523,758 28,754,125 27,047,893 2,668,881 29,716,774 SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2017 and 2016 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 73 of 242 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2017 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued) 2016-2017 Governmental Activities 2016-2017 Business-Type Activities 2016-2017 Total 2015-2016 Governmental Activities 2015-2016 Business-Type Activities 2015-2016 Total Program Expenses General Government 2,959,691$ -$ 2,959,691$ 2,722,773$ -$ 2,722,773$ Public Safety 11,365,013 - 11,365,013 10,160,806 - 10,160,806 Community Development 2,201,570 - 2,201,570 1,970,389 - 1,970,389 Community, Recreation & Zoo Services 2,271,284 - 2,271,284 2,368,234 - 2,368,234 Parks & Open Space 716,736 - 716,736 759,621 - 759,621 Public Works 3,206,609 - 3,206,609 3,293,532 - 3,293,532 Sewer - 2,414,933 2,414,933 - 2,237,196 2,237,196 Transit - 475,134 475,134 - 444,181 444,181 Interest on long-term debt 742,667 742,667 749,604 - 749,604 Total Expenses 23,463,570 2,890,067 26,353,637 22,024,959 2,681,377 24,706,336 Change in net position 2,766,797 (366,309) 2,400,488 5,022,934 (12,496) 5,010,438 Net position- beginning 149,363,445 25,425,103 174,788,548 144,340,511 25,437,599 169,778,110 Net position- ending 152,130,242$ 25,058,794$ 177,189,036$ 149,363,445$ 25,425,103$ 174,788,548$ SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2017 and 2016 Governmental activities during the year increased the City’s net position by $2,766,797. Business-type activities decreased the City’s net position by $366,309. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 74 of 242 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2017 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, 2017, the City’s governmental funds reported combined ending fund balances of $48,574,699. Approximately 3% ($1,497,656) 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 $9,055,416. The General Fund portion of this, $9,895,669, 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 $37,737,698 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, $283,929, 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, 2017, the total fund balance was $11,392,595 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 50.3% of fund expenditures, compared to 59.5% the prior fiscal year. The General Fund balance decreased $246,112 during the fiscal year. In Lieu Low/Moderate Income Housing Fund – This fund accounts for fees that are paid by developers in lieu of building inclusionary (affordable) housing. These fees are expended on programs that provide and/or promote affordable housing within the City. At June 30, 2017, the fund balance was $5,688,220. 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, 2017, was $2,072,218, up $175,560 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 ($840,253) at June 30, 2017. 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-2 DATE: 01/23/18 ATTACHMENT: 1 Page 75 of 242 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2017 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, 2017, the total fund balance was $16,770,795, which reflects $15.4 million in advances receivable from the Successor Agency. See Notes 8 and 15 to the financial statements for additional information on the Successor Agency and the bond issue. 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, 2017, these funds had an aggregate fund balance of $13,491,124. Of this total, $730 is non- spendable and $283,929 is assigned for specific uses. The Restricted Fund Balance is $13,206,465. 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 2016-2017 by $4,315,065, 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 $22,951,674 and $606,818 for Business-type Activities. Compensated absences increased by $147,525 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, 2017, net capital assets of the governmental activities totaled $129,146,060 and the net capital assets of the business-type activities totaled $15,247,271. Depreciation on capital assets is recognized in the Government-wide Financial Statements. The City has elected to depreciate its infrastructure assets. In order to depreciate the infrastructure assets, an estimated useful life for each type of asset was determined using engineering standards, industry standards, as well as discussions with City staff regarding the City’s maintenance program for each asset type. This allowed the estimated useful life of each asset type to be tailored to include the unique attributes of the City of Atascadero. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 76 of 242 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2017 11 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) The following table presents summary information on the City’s capital assets: 2016-2017 Governmental Activities 2016-2017 Business-Type Activities 2016-2017 Total 2015-2016 Governmental Activities 2015-2016 Business-Type Activities 2015-2016 Total Non-Depreciable: Land 40,855,264$ 442,044$ 41,297,308$ 40,855,264$ 442,044$ 41,297,308$ Construction in progress 5,130,072 111,118 5,241,190 3,359,872 65,702 3,425,574 Depreciable: Vehicles and equipment 10,976,017 1,102,728 12,078,745 9,458,163 717,903 10,176,066 Structures and improvements 50,194,569 29,018,882 79,213,451 50,114,352 28,985,980 79,100,332 Infrastructure 64,895,103 - 64,895,103 63,317,903 - 63,317,903 Accumulated Depreciation (42,904,965) (15,427,501) (58,332,466) (40,080,895) (14,604,800) (54,685,695) Net capital assets 129,146,060$ 15,247,271$ 144,393,331$ 127,024,659$ 15,606,829$ 142,631,488$ General Fund Budgetary Highlights A detailed budgetary comparison schedule for the fiscal year ended June 30, 2017, 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 2016-2017 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 2016-2017. General Fund Original Budget Final Budget Actual Variance Positive (Negative) Revenues 20,475,030$ 21,002,170$ 22,097,886$ 1,095,716$ Expenditures 23,124,180 25,223,270 22,668,788 2,554,482 Other Sources (Uses)251,530 251,530 324,790 73,260 Fund Balance, beginning 11,638,707 11,638,707 11,638,707 - Fund Balance, ending 9,241,087$ 7,669,137$ 11,392,595$ 3,723,458$ ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 77 of 242 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2017 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 public safety, mutual aid, recreation activities, Measure F-14 projects, and the $1,000,000 contribution toward deferred maintenance costs in the Building Maintenance and Replacement Fund. 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 $3.7 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 is ongoing 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. CalPERS Retirement Cost Increases In December 2016, the CalPERS Board of Directors elected to change the discount rate from 7.5% to 7.0%, to be phased in over a three year time frame. The discount rate is the assumed rate of return on investments, and decreasing this rate assumes that CalPERS will learn less interest income, and consequently, employers like the City will see significant increases in the costs required to fund the Retirement Plan. State impacts and other governmental regulation Impacts from the State such as water restrictions, climate action plans, changes to State building and construction codes, new environmental regulations, heavy reporting requirements and minimum wage increases continue to burden the City’s budget. Animal Control The City contracts with the County of San Luis Obispo for animal control services. Operating costs have been on the rise each year, and the County will be building a new facility for which Atascadero will need to contribute. The County and the cities continue negotiations to find the most affordable and effective solution. The 2017-2018 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  Downtown Revitalization  Employee Resources To accomplish all of these goals, the 2017-2018 budget includes the planned use of $367,600 in reserves, in accordance with the Council’s financial strategy. CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Atascadero, Administrative Services Department, 6500 Palma Avenue, Atascadero, CA 93422. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 78 of 242 BASIC FINANCIAL STATEMENTS ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 79 of 242 CITY OF ATASCADERO STATEMENT OF NET POSITION June 30, 2017 Governmental Activities Business-Type Activities Total ASSETS Cash and investments 30,175,183$ 10,631,121$ 40,806,304$ Restricted cash and investments: Cash with fiscal agents 1,410,793 - 1,410,793 Certificates of deposit 85,473 - 85,473 Receivables: Federal distributions due 3,082,080 187,580 3,269,660 Due from State of California 1,770,781 1,810 1,772,591 Due from County of San Luis Obispo 228,316 27,010 255,326 Accrued interest 54,227 18,274 72,501 Accrued interest receivable- 2010 bonds 183,437 - 183,437 Other receivables 873,136 40,359 913,495 Internal balances 214,243 (214,243) - Deposits, prepaid items and inventory 38,048 1,869 39,917 Notes receivable 5,128,641 - 5,128,641 Advance receivable- Successor Agency 16,735,175 - 16,735,175 Capital assets: Non-depreciable: Land 40,855,264 442,044 41,297,308 Construction in progress 5,130,072 111,118 5,241,190 Depreciable: Vehicles and equipment 10,976,017 1,102,728 12,078,745 Structures and improvements 50,194,569 29,018,882 79,213,451 Infrastructure 64,895,103 - 64,895,103 Accumulated depreciation (42,904,965) (15,427,501) (58,332,466) Total assets 189,125,593 25,941,051 215,066,644 DEFERRED OUTFLOWS Deferred outflows related to pensions 7,600,976 163,195 7,764,171 Total deferred outflows 7,600,976 163,195 7,764,171 The notes to the basic financial statements are an integral part of this statement. 13 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 80 of 242 CITY OF ATASCADERO STATEMENT OF NET POSITION (continued) June 30, 2017 Governmental Activities Business-Type Activities Total LIABILITIES Accounts payable 1,617,794$ 263,587$ 1,881,381$ Accrued salaries and benefits 496,293 15,809 512,102 Accrued interest payable 183,437 - 183,437 Other payables 39,089 24,529 63,618 Deposits payable 63,292 - 63,292 Unearned revenue 1,352,512 56,372 1,408,884 Noncurrent liabilities: Due within one year 237,982 - 237,982 Due in more than one year 39,648,281 633,743 40,282,024 Total liabilities 43,638,680 994,040 44,632,720 DEFERRED INFLOWS Deferred inflows related to pensions 957,647 51,412 1,009,059 Total deferred inflows 957,647 51,412 1,009,059 NET POSITION Net investment in capital assets 114,912,430 15,247,271 130,159,701 Restricted for: Restricted for parks and recreation 3,543,440 - 3,543,440 Restricted for streets, roads and drainage 7,757,638 - 7,757,638 Restricted for public safety 1,479,863 - 1,479,863 Restricted for redevelopment & housing 7,937,823 - 7,937,823 Restricted for debt service 16,943,358 - 16,943,358 Unrestricted (444,310) 9,811,523 9,367,213 Total net position 152,130,242$ 25,058,794$ 177,189,036$ The notes to the basic financial statements are an integral part of this statement. 14 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 81 of 242 CITY OF ATASCADERO STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2017 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 2,959,691$ 270,590$ 14,096$ -$ (2,675,005)$ -$ (2,675,005)$ Public safety 11,365,013 739,438 223,264 399,913 (10,002,398) - (10,002,398) Community development 2,201,570 1,089,445 - 109,467 (1,002,658) - (1,002,658) 2,271,284 864,246 31,575 81,682 (1,293,781) - (1,293,781) Parks & open space 716,736 48,094 - 338,908 (329,734) - (329,734) Public works 3,206,609 217,029 1,231,364 1,311,232 (446,984) - (446,984) Interest on long-term debt 742,667 - - - (742,667) - (742,667) Total governmental activities 23,463,570 3,228,842 1,500,299 2,241,202 (16,493,227) - (16,493,227) Business-type activities: Sewer 2,414,933 2,119,725 - - - (295,208) (295,208) Transit 475,134 45,715 352,750 - - (76,669) (76,669) Total business-type activities 2,890,067 2,165,440 352,750 - - (371,877) (371,877) Total government 26,353,637$ 5,394,282$ 1,853,049$ 2,241,202$ (16,493,227) (371,877) (16,865,104) General revenues Taxes: Secured and unsecured property taxes 9,684,656 - 9,684,656 Sales tax and payments in lieu of sales tax 5,739,447 - 5,739,447 Transient lodging tax 1,337,528 - 1,337,528 Franchise taxes 1,168,572 - 1,168,572 Business license tax 165,542 - 165,542 Property transfer tax 153,582 - 153,582 Other taxes 312,796 - 312,796 Motor vehicle in lieu 13,833 - 13,833 Investment income (54,515) 5,568 (48,947) Interest from Successor Agency 738,583 - 738,583 Total general revenues 19,260,024 5,568 19,265,592 Change in net position 2,766,797 (366,309) 2,400,488 Net position at beginning of fiscal year 149,363,445 25,425,103 174,788,548 Net position at end of fiscal year 152,130,242$ 25,058,794$ 177,189,036$ Net (Expense) Revenue and Changes in Net Position Community, recreation & zoo services The notes to the basic financial statements are an integral part of this statement. 15 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 82 of 242 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET June 30, 2017 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 8,711,098$ 678,420$ 3,012,717$ -$ 2$ 12,373,043$ 24,775,280$ Restricted cash and investments: - - - - 1,410,793 - 1,410,793 Certificates of deposit 85,473 - - - - - 85,473 Receivables: Federal distributions due 72,040 - - - - 1,099,141 1,171,181 Due from State of California 1,030,611 - - - - 103,169 1,133,780 118,421 - - - - 109,895 228,316 Accrued interest 18,416 1,159 5,330 - - 21,513 46,418 Other receivables 737,829 - 2,192 731 - 132,217 872,969 Due from other funds 893,100 - - - - 840,984 1,734,084 Deposits, prepaid items, and inventory 36,278 - - - - 730 37,008 Notes receivable - 5,008,641 - - - 120,000 5,128,641 Advances receivable- Successor Agency 1,375,175 - - - 15,360,000 - 16,735,175 Total assets 13,078,441$ 5,688,220$ 3,020,239$ 731$ 16,770,795$ 14,800,692$ 53,359,118$ Other NonMajor Governmental Funds Cash and investments with fiscal agent Due from County of San Luis Obispo The notes to the basic financial statements are an integral part of this statement. 16 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 83 of 242 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET (continued) June 30, 2017 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 834,126$ -$ 20,245$ -$ -$ 471,436$ 1,325,807$ Accrued salaries and benefits 472,298 - - - - 11,680 483,978 Due to other funds - - - 840,984 - 678,857 1,519,841 Unearned revenue 277,041 - 927,776 - - 147,595 1,352,412 Deposits 63,292 - - - - - 63,292 Other payables 39,089 - - - - - 39,089 Total liabilities 1,685,846 - 948,021 840,984 - 1,309,568 4,784,419 Fund Balances: Nonspendable 1,496,926 - - - - 730 1,497,656 Restricted - 5,688,220 2,072,218 - 16,770,795 13,206,465 37,737,698 Assigned for road projects - - - - - 283,929 283,929 Unassigned 9,895,669 - - (840,253) - - 9,055,416 Total fund balances 11,392,595 5,688,220 2,072,218 (840,253) 16,770,795 13,491,124 48,574,699 Total liabilities and fund balances 13,078,441$ 5,688,220$ 3,020,239$ 731$ 16,770,795$ 14,800,692$ 53,359,118$ Other NonMajor Governmental Funds The notes to the basic financial statements are an integral part of this statement. 17 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 84 of 242 CITY OF ATASCADERO RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET TO THE STATEMENT OF NET POSITION Total fund balances - governmental funds 48,574,699$ 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 111,350,054$ Accumulated depreciation (29,491,510) Net 81,858,544 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.(183,437) In governmental funds, the receivable from the Successor Agency related to interest on the 2010 long-term debt is 183,437 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 15,360,000 Workers' Compensation estimated claims liability in excess of deposits 34,760 Compensated absences payable 1,226,949 PERS pension liability 22,199,826 Other Post Employment Benefits 186,100 (39,007,635) 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 7,397,697 Deferred inflows (894,659) 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.(69,394) June 30, 2017 not recognized until the period in which it is paid. In the government-wide statement of activities, it is recognized in the period that it is incurred. The notes to the basic financial statements are an integral part of this statement. 18 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 85 of 242 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.54,270,990$ Total net position, governmental activities 152,130,242$ June 30, 2017 The notes to the basic financial statements are an integral part of this statement. 19 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 86 of 242 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2017 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 8,927,672$ -$ -$ -$ -$ 1,024,491$ 9,952,163$ Taxes based on sales and use 5,739,447 - - - - - 5,739,447 Franchise tax 1,168,572 - - - - - 1,168,572 Other taxes 1,656,652 - - - - - 1,656,652 Licenses and permits 542,181 109,467 296,570 4,610 - 602,778 1,555,606 Intergovernmental revenues: 13,833 - - - - - 13,833 Grants 13,455 - - - - 1,056,991 1,070,446 Other governmental revenues 125,865 - - - - 1,231,364 1,357,229 Charges for services: Public safety 661,383 - - - - - 661,383 Development 728,993 - - - - - 728,993 Recreation, parks, pavilion and zoo 898,973 - - - - - 898,973 Other services 56,654 - - - - - 56,654 Fines and forfeitures 76,981 - - - - - 76,981 Use of money and property 9,801 (83,434) 4,885 - 740,247 21,567 693,066 Other revenues 1,477,424 - - - - 58,000 1,535,424 Total revenues 22,097,886 26,033 301,455 4,610 740,247 3,995,191 27,165,422 Motor vehicle in lieu The notes to the basic financial statements are an integral part of this statement. 20 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 87 of 242 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2017 General Fund In Lieu Low / Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund 2010 Bond Debt Service Fund Other NonMajor Governmental Funds Totals Expenditures: Current: General government 3,213,988$ -$ -$ -$ -$ 6,866$ 3,220,854$ Public safety 11,174,013 - - - - 124,743 11,298,756 Community development 1,761,188 49,781 - - 1,975 232,639 2,045,583 2,389,306 - - - - 8,068 2,397,374 Parks and open space 598,761 - - - - 26,797 625,558 Public works 1,156,437 - - - - 1,096,280 2,252,717 Capital outlay 2,375,095 - 125,895 - - 2,278,953 4,779,943 Debt service: Principal - - - - 225,000 - 225,000 Interest - - - - 747,313 - 747,313 Total expenditures 22,668,788 49,781 125,895 - 974,288 3,774,346 27,593,098 Excess of revenues over (under) expenditures (570,902) (23,748) 175,560 4,610 (234,041) 220,845 (427,676) Other Financing Sources (Uses): Transfers in 494,190 - - - - 193,240 687,430 Transfers out (169,400) - - - - (518,030) (687,430) Total other financing sources and uses 324,790 - - - - (324,790) - Net change in fund balances (246,112) (23,748) 175,560 4,610 (234,041) (103,945) (427,676) 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 Fund balances - June 30, 2017 11,392,595$ 5,688,220$ 2,072,218$ (840,253)$ 16,770,795$ 13,491,124$ 48,574,699$ Community, recreation and zoo services The notes to the basic financial statements are an integral part of this statement. 21 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 88 of 242 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, 2017 Total net change in fund balance - governmental funds (427,676)$ 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 $4,779,943 is greater than depreciation expense $(1,427,052) in the period.3,352,891 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.(89,328) 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.225,000 In governmental funds, the issuance premiums associated with long-term debt are reported as revenue in the fiscal year debt is issued. In the government-wide statements, the issuance premiums are recorded as liabilities and are amortized over the life of the related debt.2,982 In governmental funds, interest on long-term debt is recognized in the period that it becomes due. In the government-wide statement of activities, it is recognized in the period that it is incurred. Unmatured interest owing at the end of the period, less matured interest paid during the period but owing from the prior period was:(1,664) 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. 1,664 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:(143,412) 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:175,473 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. 40,351 The notes to the basic financial statements are an integral part of this statement. 22 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 89 of 242 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, 2017 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.(33,306)$ 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 $47,973 less the contributions of cash and capital assets from other governmental funds ($384,151).(336,178) Changes in net position - governmental activities 2,766,797$ The notes to the basic financial statements are an integral part of this statement. 23 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 90 of 242 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30, 2017 Wastewater Fund Transit Fund Totals ASSETS Current Assets: Cash and investments 10,631,121$ -$ 10,631,121$ 5,399,903$ Receivables: Federal distributions due 5,429 182,151 187,580 1,910,899 Due from State of California 1,810 - 1,810 637,001 Due from County of San Luis Obispo 26,965 45 27,010 - Accrued interest 18,659 (385) 18,274 7,809 Other receivables 39,237 1,122 40,359 167 Prepaid expenses 1,869 - 1,869 1,040 Total current assets 10,725,090 182,933 10,908,023 7,956,819 Capital Assets: Non-depreciable: Land 442,044 - 442,044 - Construction in progress 111,118 - 111,118 586,748 Depreciable: Vehicles and equipment 748,023 354,705 1,102,728 10,889,265 Structures and improvements 27,598,607 1,420,275 29,018,882 49,224,958 Accumulated depreciation (14,794,875) (632,626) (15,427,501) (13,413,455) Net capital assets 14,104,917 1,142,354 15,247,271 47,287,516 Total assets 24,830,007 1,325,287 26,155,294 55,244,335 DEFERRED OUTFLOWS Deferred outflows related to pensions 152,897 10,298 163,195 203,279 Total Deferred Outflows 152,897 10,298 163,195 203,279 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 24 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 91 of 242 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION (continued) June 30, 2017 Wastewater Fund Transit Fund Totals LIABILITIES Current Liabilities: Accounts payable 242,683$ 20,904$ 263,587$ 291,987$ Accrued salaries and benefits 14,935 874 15,809 12,315 Unearned revenue - 56,372 56,372 100 Due to other funds - 214,243 214,243 - Other payables 22,603 1,926 24,529 - Noncurrent Liabilities: Noncurrent liabilities 594,862 38,881 633,743 809,234 Total liabilities 875,083 333,200 1,208,283 1,113,636 DEFERRED INFLOWS Deferred inflows related to pensions 48,012 3,400 51,412 62,988 Total Deferred Inflows 48,012 3,400 51,412 62,988 NET POSITION Net investment in capital assets 14,104,917 1,142,354 15,247,271 47,287,516 Unrestricted 9,954,892 (143,369) 9,811,523 6,983,474 Total net position 24,059,809$ 998,985$ 25,058,794$ 54,270,990$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 25 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 92 of 242 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2017 Wastewater Fund Transit Fund Totals Operating Revenues: Service fees 1,958,527$ 45,715$ 2,004,242$ 2,413,970$ Installation, extension and connection fees 161,198 - 161,198 - Other - - - 250 Total operating revenues 2,119,725 45,715 2,165,440 2,414,220 Operating Expenses: Salaries and benefits 575,287 41,196 616,483 664,506 Office expense 5,244 623 5,867 296 Computer maintenance and replacement 25,364 11,270 36,634 2,710 Insurance 16,451 6,564 23,015 27,008 Occupancy and rental costs 8,556 1,660 10,216 31,550 Utilities 256,504 - 256,504 77,202 Communications 8,273 61 8,334 37,555 Operating supplies 102,428 201 102,629 40,723 Vehicle and equipment operating costs 77,530 55,259 132,789 5,535 Contract services 96,296 138,391 234,687 128,008 Professional development 11,500 460 11,960 8,957 Recruitment 515 - 515 - Franchise fees 38,251 - 38,251 - Administrative charges 276,810 142,780 419,590 49,720 Special projects: Tables - - - 2,270 Chairs - - - 1,604 Refrigerator - - - - Treatment Plant Minor Road Repairs 8,850 - 8,850 - Manhole Rehabilitation Projects 74,881 - 74,881 - Sewer Line Trench Settlement Repair Project 29,715 - 29,715 - Wastewater Collection System Video Taping 306 - 306 - Salt and Nutrient Management Plan 7,962 - 7,962 - Wastewater Fee Study 5,079 - 5,079 - Inflow and Infiltration Study 23,797 - 23,797 - Re-rating Study 19,302 - 19,302 - Termite Repairs- Police Station - - - 5,885 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 26 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 93 of 242 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2017 Wastewater Fund Transit Fund Totals Operating Expenses (continued): Depreciation 746,032$ 76,669$ 822,701$ 1,670,831$ Total operating expenses 2,414,933 475,134 2,890,067 2,754,360 Operating income (loss)(295,208) (429,419)(724,627) (340,140) Non-Operating Revenues (Expenses): Transportation Development Act Funds - Operations - 179,500 179,500 - Section 5307 Revenues - Operations - 173,250 173,250 - Interest income 8,483 (2,915) 5,568 3,422 Gain / (loss) on sale of capital assets - - - 540 Total non-operating revenues 8,483 349,835 358,318 3,962 Change in net position prior to capital contributions (286,725) (79,584) (366,309) (336,178) Capital Contributions: Cash contributions from other funds - - - 95,829 Capital contributions from other funds - - - 288,322 Total capital contributions - - - 384,151 Change in net position (286,725) (79,584) (366,309) 47,973 Total net position, June 30, 2016 24,346,534 1,078,569 25,425,103 54,223,017 Total net position, June 30, 2017 24,059,809$ 998,985$ 25,058,794$ 54,270,990$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 27 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 94 of 242 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2017 Wastewater Fund Transit Fund Totals Cash Flows From Operating Activities: Receipts from customers 2,145,573$ 45,903$ 2,191,476$ -$ Internal activity - payments from other funds - - - 2,414,220 Payments to suppliers of goods and services (1,069,263) (353,736) (1,422,999) (347,604) Payments for employee services (566,479) (40,685) (607,164) (655,511) Net cash provided (used) by operating activities 509,831 (348,518) 161,313 1,411,105 - 355,031 355,031 - - (3,590) (3,590) - Net cash provided (used) by non-capital related financing activities - 351,441 351,441 - Acquisition of capital assets (463,143) - (463,143) (624,499) Cash contributions for capital purchases - - - 95,829 Capital grant proceeds - - - - Proceeds from sale of capital assets - - - 540 Net cash provided (used) by capital and related financing activities (463,143) - (463,143) (528,130) 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-2 DATE: 01/23/18 ATTACHMENT: 1 Page 95 of 242 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2017 Wastewater Fund Transit Fund Totals Cash Flows From Investing Activities: Interest income 8,325$ (2,923)$ 5,402$ 3,578$ Net cash provided (used) by investing activities 8,325 (2,923) 5,402 3,578 Net increase in cash and cash equivalents 55,013 - 55,013 886,553 Cash and cash equivalents - June 30, 2016 10,576,108 - 10,576,108 4,513,350 Cash and cash equivalents - June 30, 2017 10,631,121$ -$ 10,631,121$ 5,399,903$ Operating income (loss)(295,208)$ (429,419)$ (724,627)$ (340,140)$ Depreciation expense 746,032 76,669 822,701 1,670,831 Change in assets and liabilities: Receivables, net 25,848 188 26,036 (167) Prepaid expenses - - - 2,684 Accounts payable 26,698 3,533 30,231 68,802 Accrued salaries and benefits 2,694 316 3,010 3,544 Unearned revenue - - - 100 Other payables (2,347) - (2,347) - Deferred outflows (36,431) (2,248) (38,679) (49,491) Deferred inflows (10,781) (664) (11,445) (14,646) Net pension liability 50,371 3,107 53,478 68,430 Compensated absences 2,955 - 2,955 1,158 Net cash provided (used) by operating activities 509,831$ (348,518)$ 161,313$ 1,411,105$ Internal Service Funds Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 29 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 96 of 242 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF FIDUCIARY NET POSITION June 30, 2017 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals ASSETS Cash and investments $ 2,127,302 $ - 2,127,302$ Restricted cash and investments: 858,130 - 858,130 Receivables: Accrued interest 3,323 - 3,323 Other receivables 350 - 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 2,360,929 - 2,360,929 Accumulated depreciation (278,509) - (278,509) Total assets 5,485,316 1,535,322 7,020,638 LIABILITIES Accounts payable 14,819 - 14,819 Interest payable 343,628 - 343,628 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 29,128 - 29,128 2004 Bonds Payable 9,995,000 - 9,995,000 15,360,000 - 15,360,000 Total liabilities 28,453,072 - 28,453,072 NET POSITION Held in trust for taxing agencies (22,967,756)$ 1,535,322$ (21,432,434)$ Successor Agency to the Atascadero Community Redevelopment Agency Cash with fiscal agent 2010 Bond Reimbursement Agreement Payable to City of Atascadero The notes to the basic financial statements are an integral part of this statement. 30 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 97 of 242 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Fiscal Year Ended June 30, 2017 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals Additions Contributions: RPTTF Distributions 1,883,589$ -$ 1,883,589$ Investment earnings: Interest 381 - 381 Total additions 1,883,970 - 1,883,970 Deductions Payment on outstanding services contracts 2,470 - 2,470 Asset maintenance costs 53,145 - 53,145 Administrative costs 250,000 - 250,000 2004 Bond Interest Expense 483,927 - 483,927 2010 Bond Reimbursement Interest Expense 733,427 - 733,427 Depreciation expense 52,112 - 52,112 Total deductions 1,575,081 - 1,575,081 Change in net position before extraordinary items 308,889 - 308,889 Loss on Sale of Assets (4,522) - (4,522) Net assets - June 30, 2016 (23,272,123) 1,535,322 (21,736,801) Net position - June 30, 2017 (22,967,756)$ 1,535,322$ (21,432,434)$ The notes to the basic financial statements are an integral part of this statement. 31 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 98 of 242 NOTES TO THE BASIC FINANCIAL STATEMENTS ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 99 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The accompanying basic financial statements present the financial activity of the City, which is the primary government. The reporting entity is the City of Atascadero. There are no component units included in this report which meet the reporting entity definition criteria of GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, GASB Statement No. 61, and GASB Statement No. 80. B. Basis of Presentation The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard-setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America. The accompanying financial statements are presented on the basis set forth in Governmental Accounting Standards Board Statements No. 34, Basic Financial Statements—Management’s Discussion and Analysis—for State and Local Governments; No. 36, Recipient Reporting for Certain Non-Exchange Revenues, an Amendment of GASB Statement No. 33; No. 37, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Government – Omnibus; and No. 38, Certain Financial Statement Note Disclosures. These statements require that the financial statements described below be presented. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on the primary government and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and private purpose trust funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 100 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 33 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Major Funds GASB Statement No. 34 defines major funds and requires that the City’s major governmental funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund-type. Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-type total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. The City reported the following major governmental funds in the accompanying financial statements: General Fund This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City. In Lieu Low/Moderate Income Housing Fund This fund accounts for fees that are paid by developers in lieu of building inclusionary (affordable) housing. These fees are expended on programs that provide and/or promote affordable housing within the City. Circulation System Fees Fund This fund accounts for fees that are paid by developers to fund the creation of more lane miles or more efficient lane miles with which to accommodate the additional trips created by new development. These fees are expended for the construction of new/increased/improved roadway and bridge facilities. Fire Aerial Vehicle Impact Fees Fund This fund accounts for impact fees imposed on commercial and multi-family residential developments for the purpose of contributing toward the purchase of the Aerial Fire Truck (Ladder Truck). The City purchased this truck in fiscal year 2007-2008 using future revenues. 2010 Bond Debt Service Fund This fund accounts for the debt service payments for the Lease Revenue Bonds that were issued on September 1, 2010. The City reported the following major proprietary funds: Wastewater Fund This fund accounts for the activities associated with the City’s sewer plant operation and maintenance. Transit Fund This fund accounts for the activities associated with the operation and maintenance of transportation services, such as and including the Dial-a-Ride Transit System. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 101 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 34 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Internal Service Funds The Internal Service Funds are used to account for services rendered on a cost-reimbursement basis within the City. The City maintains three internal service funds: the Technology Fund, the Vehicle and Equipment Replacement Fund, and the Building Maintenance and Replacement Fund. The Internal Service Funds are presented in total on the Proprietary Funds financial statements. They are included in the governmental activities in the government- wide financial statements since they represent internal governmental activities. E. Private Purpose Trust Funds Private Purpose Trust Funds are used to account for monies held on behalf of others in a fiduciary capacity. The City uses private purpose trust funds to account for the Successor Agency of the Former Redevelopment Agency which was dissolved on January 31, 2012, pursuant to state law. All resources of the funds are used to support specified activities. F. Basis of Accounting The government-wide, proprietary fund financial statements, and the private purpose trust fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989 generally are followed in both government-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 accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after fiscal year end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent that they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under 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 Transit Fund are charges to customers for services. The Wastewater Fund also recognizes as operating revenue the installation, extension and connections fees intended to recover the cost of connecting new customers to the system. All revenues not meeting these definitions are reported as non-operating revenues, including non- exchange transactions such as local transportation funds and federal Section 5307 revenues. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 102 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 35 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Basis of Accounting (continued) Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net assets may be available to finance program expenditures/expenses. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. G. Compensated Absences In compliance with Governmental Accounting Standards Board Statement No. 16, the City has established a liability for accrued vacation, other leave and certain sick leave in relevant funds. For governmental funds, the current liability appears in the respective funds. All vacation, sick and other leave paid is accrued when incurred in the government-wide and proprietary funds financial statements. This liability is set up for the current employees at the current rates of pay. If vacation and certain other leave are not used by the employee during the term of employment, compensation is payable to the employee at the time of retirement or termination. Such compensation is calculated at the employee’s prevailing rate at the time of retirement or termination. Each fiscal year, an adjustment to the liability is made based on pay rate changes and adjustments for the current portion. The General Fund is primarily responsible for the repayment of the governmental portion of compensated absences. H. Property Taxes California Constitution Article XIII A limits the combined property tax rate to one percent of a property’s assessed valuation. Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property’s fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership or new construction occurs. The state legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions. Property tax revenues are recognized in the fiscal year for which taxes have been levied, and collected within sixty days of fiscal year end. Property taxes are billed and collected as follows: Secured Unsecured Valuation/Lien Date(s) January 1 January 1 Levy Date(s) July 1 July 1 Due Date(s) November 1 (50%) August 1 February 1 (50%) Delinquency Date(s) December 10 (Nov.) August 31 April 10 (Feb.) The City adopted an alternative method of property tax distribution (the “Teeter Plan”). Under this method, the City receives 100% of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives payments as a series of advances made by the County throughout the fiscal year. The secured property tax levy is recognized as revenue upon receipt, including the final payment, which generally is received within 60 days after the fiscal year end. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 103 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 36 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I. Capital Assets Additions and Retirements Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair value on the date contributed. The City’s policy is to capitalize all capital assets with costs exceeding a minimum of $2,500, and with useful lives exceeding one year. In the Technology Fund, the City uses a lower cost threshold to capitalize assets due to the nature of the assets. With the implementation of GASB Statement No. 34, the City has recorded all its public domain (infrastructure) capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems. The City’s collection of zoo animals is not capitalized. The collection of animals is held for public education purposes, is well cared for, and there is a City commitment to continue the collection. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each fiscal year represents that fiscal year’s pro rata share of the cost of capital assets. GASB Statement No. 34 requires that all capital assets with limited useful lives be depreciated over their estimated useful lives. Depreciation is provided using the straight line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each fiscal year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets. Structures and Improvements 3-100 years Equipment 3-25 years Infrastructure 15-100 years J. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, as prescribed by the GASB and the American Institute of Certified Public Accountants, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. K. Cash and Cash Equivalents For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Proprietary Funds’ “deposits” in the Citywide cash management pool are, in substance, demand deposits and are, therefore, considered cash equivalents for purposes of the statement of cash flows. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 104 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 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 perform ance bonds asset account in the amount of $10,592,735 was netted against the liability account of $10,649,654 in fiscal year 2017. The net balance in the performance bond deposits liability account at June 30, 2017, was $56,919 and is included with other amounts in the “Deposits” liability reported in the basic financial statements. M. Short-Term Debt The City has no short-term debt. N. Long-Term Contracts The City uses the percentage-of-completion method of accounting for long-term contracts, recognizing the pro rata portion of the contract in the accounting period covered by the contract. O. Fund Balance Categories of Fund Balance In accordance with Government Accounting Standards Board Statement No. 54, the City classifies fund balances as follows: Non-spendable- includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual constraints Restricted- includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation Committed- includes amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council Assigned- includes fund balance amounts that are constrained for specific purposes by the City through formal action of the City Council and does not lapse at fiscal year end Unassigned- includes positive fund balance within the General Fund which has not been classified within the above mentioned categories and negative fund balances in other governmental funds Non-Spendable Fund Balance The non-spendable fund balance of $1,497,656 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 $37,737,698 is comprised of $5,688,220 for affordable housing, $16,770,795 restricted for debt service, and $15,278,683 restricted for other Capital Project Funds and Special Revenue Funds. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 105 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 38 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Fund Balance (continued) Assigned Fund Balance The assigned fund balance of $283,929 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 specific future project; however, it is the City’s general policy to use restricted amounts first when both restricted and unrestricted amounts are available. Similarly, the City would typically first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. Minimum Fund Balance Policy The City adopted a formal fund balance policy stating that as part of the biennial budget process, fund balance shall be evaluated to determine the prudent level of reserves based on eleven key measurements. The policy further states that except in the case of natural or fiscal emergencies, the City’s general fund balance shall not fall below 20% of General Fund expenditures. The General Fund reserve met this criteria for fiscal year 2016-2017. Major Special Revenue and Capital Projects Funds The purpose for each major fund may be found in Note 1(C); however, each major special revenue and capital projects fund and its revenue source is listed below: Major Special Revenue and Debt Service Funds Revenue Source In Lieu Low/Moderate Income Housing Fund New Developments Circulation System Fees Fund Development Impact Fees Fire Aerial Vehicle Impact Fees Fund Development Impact Fees 2010 Bond Debt Service Fund Successor Agency Tax Increment ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 106 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 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 121,751$ -$ -$ -$ -$ 730$ 122,481$ Advances Receivable 1,375,175 - - - - - 1,375,175 Restricted Public Safety - - - - - 1,479,863 1,479,863 Streets, Roads, and Drainage - - 2,072,218 - - 5,684,690 7,756,908 Parks, Open Space & Recreation - - - - - 3,543,440 3,543,440 - - - - - 2,325,909 2,325,909 Affordable Housing - 5,688,220 - - - - 5,688,220 Debt Service - - - - 16,770,795 172,563 16,943,358 Assigned Streets, Roads, and Drainage - - - - - 283,929 283,929 Unassigned 9,895,669 - - (840,253) - - 9,055,416 Total Fund Balances 11,392,595$ 5,688,220$ 2,072,218$ (840,253)$ 16,770,795$ 13,491,124$ 48,574,699$ Other NonMajor Governmental Funds Disclosure of Fund Balances Reported on Balance Sheet June 30, 2017 Community Development and Blight Elimination Deposits, prepaid items, and inventory ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 107 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 40 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) P. New Accounting Pronouncements Governmental Accounting Standards Board Statement No. 73 For the fiscal year ended June 30, 2017, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. This Statement is effective for periods beginning after June 15, 2016. This Statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing these pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement 68. It also amends certain provisions of Statement No. 67, “Financial Reporting for Pension Plans,” and Statement 68 for pension plans and pensions that are within their respective scopes. The requirements of this Statement extend the approach to accounting and financial reporting established in Statement 68 to all pensions, with modifications as necessary to reflect that for accounting and financial reporting purposes, any assets accumulated for pensions that are provided through pension plans that are not administered through trusts that meet the criteria specified in Statement 68 should not be considered pension plan assets. It also requires that information similar to that required by Statement 68 be included in notes to financial statements and required supplementary information by all similarly situated employers and nonemployer contributing entities. Implementation of this Statement did not have a significant impact on the City for the year ended June 30, 2017. Governmental Accounting Standards Board Statement No. 74 For the fiscal year ended June 30, 2017, the City implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This Statement is effective for periods beginning after June 15, 2016. This Statement replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. It also includes requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, as amended, Statement 43, and Statement No. 50, Pension Disclosures. This Statement establishes new accounting and financial reporting requirements for governments whose employees are provided with OPEB, as well as for certain nonemployer governments that have a legal obligation to provide financial support for OPEB provided to the employees of other entities. Implementation of this Statement did not have a significant impact on the City for the year ended June 30, 2017. Governmental Accounting Standards Board Statement No. 77 For the fiscal year ended June 30, 2017, the City implemented GASB Statement No. 77, Tax Abatement Disclosures. This Statement is effective for periods beginning after December 15, 2015. This Statement requires governments that enter into tax abatement agreements to disclose tax abatement information about (1) a reporting government’s own tax abatement agreements and (2) those that are entered into by other governments and that reduce the reporting government’s tax revenues. Implementation of this Statement did not have a significant impact on the City for the year ended June 30, 2017. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 108 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 41 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) P. New Accounting Pronouncements (continued) Governmental Accounting Standards Board Statement No. 78 For the fiscal year ended June 30, 2017, the City implemented GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. This Statement is effective for periods beginning after December 15, 2015. This Statement amends the scope and applicability of Statement 68 to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension plan that (1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions both to employees of state or local governmental employers and to employees of employers that are not state or local governmental employers, and (3) has no predominant state or local governmental employer (either individually or collectively with other state or local governmental employers that provide pensions through the pension plan). This Statement establishes requirements for recognition and measurement of pension expense, expenditures, and liabilities; note disclosures; and required supplementary information for pensions that have the characteristics described above. Implementation of this Statement did not have a significant impact on the City for the year ended June 30, 2017. Governmental Accounting Standards Board Statement No. 80 For the fiscal year ended June 30, 2017, the City implemented GASB Statement No. 80, Blending Requirements for Certain Component Units-An Amendment of GASB Statement No. 14. This Statement is effective for periods beginning after June 15, 2016. This Statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does not apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units. Implementation of this Statement did not have a significant impact on the City for the year ended June 30, 2017. Q. Deferred Outflows and Inflows of Resources Pursuant to GASB Statement No. 63, “Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position,” and GASB Statement No. 65, “Items Previously Reported as Assets and Liabilities,” the City recognizes deferred outflows and inflows of resources. In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period. The City has one item which qualifies for reporting in this category; refer to Note 9 for a detailed listing of the deferred outflows of resources the City has recognized. In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. A deferred inflow of resources is defined as an acquisition of net position by the City that is applicable to a future reporting period. The City has one item which qualifies for reporting in this category; refer to Note 9 for a detailed list of the deferred inflows of revenues the City recognized. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 109 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 42 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Q. Deferred Outflows and Inflows of Resources (continued) Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions and pension expense, information about the fiduciary net position of the City of Atascadero’s California Employees’ Retirement System (CalPERS) Plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information Biennial budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds. After adoption of the final budget, transfers of appropriations within a general fund department, or within other funds, can be made by the City Manager or her appointee. Budget modifications between funds, and increases or decreases to a fund’s overall budget, must be approved by the City Council. Numerous properly authorized amendments were made during the fiscal year. Budgetary control is enhanced by integrating the budget into the general ledger accounts. Encumbrance accounting is employed (e.g., purchase orders) to avoid expenditures over budget. Encumbrances outstanding at fiscal year-end are automatically re-budgeted in the following fiscal year. B. Deficit Fund Balance Deficit fund balances in the following funds exist due to large purchases incurred prior to the receipt of the long-term reimbursing revenues: Deficit Fund Balance Major Governmental Fund Fire Aerial Vehicle Impact Fees Fund (840,253)$ ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 110 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 43 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, 2017, consisted of the following: Pooled Cash and Investments: Cash in bank and on hand 1,161,058$ Investments 25,790,250 Broker Money Market Account 41,182 Local Agency Investment Fund (State Pool)16,026,589 Total Pooled Cash and Investments 43,019,079 Funds with Fiscal Agents: United States Treasury Money Fund 2,268,923 Total Funds with Fiscal Agents 2,268,923 Total Cash and Investments 45,288,002$ 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 30,175,183$ 10,631,121$ 2,127,302$ 42,933,606$ Cash and investments held by fiscal agents 1,410,793 - 858,130 2,268,923 Restricted certificates of deposit 85,473 - - 85,473 Total Cash and Investments 31,671,449$ 10,631,121$ 2,985,432$ 45,288,002$ ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 111 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 44 NOTE 3 – CASH AND INVESTMENTS (continued) A. Deposits with Financial Institutions For custodial credit risk associated with deposits, the City follows the California Government Code, which requires California financial institutions to secure the City’s deposits by pledging government securities as collateral. The fair value of the pledged securities must equal 110% of the City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes equal to 150% of the City’s deposits. At fiscal year end, the City’s bank account balance was $1,161,058. The first $250,000 was insured by federal depository insurance, and the remainder was 110% collateralized. Certificates of Deposit totaling $12,299,032 are fully insured. B. State Investment Pool The fair value of the City’s position in the State LAIF pool is the same as the value of the pool shares. The State LAIF pool credit quality is unrated. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. Separate financial statements for LAIF can be obtained by writing Local Agency Investment Fund, Post Office Box 942809, Sacramento, CA 94209-0001. C. Authorized Investments The City’s Investment Policy lists the following as authorized investments: Local Agency Investment Fund (LAIF) U.S. Government Obligations Bankers’ Acceptances Commercial Paper Certificates of Deposit and Passbook Savings Accounts Money Market Funds D. Marking Investments to Fair Value (GASB Statement No. 31) In fiscal year 1997/98, the City adopted Governmental Accounting Standards Board Statement No. 31, which requires that the City’s investments be carried at fair value instead of cost. Under GASB Statement No. 31, the City must adjust the carrying value of its investments to reflect their fair value at each fiscal year end, and it must include the effects of these adjustments in income for that fiscal year. GASB Statement No. 31 applies to all City investments, even if held to maturity and redeemed at full face value. Since the City’s policy is to hold all investments to maturity, the fair value adjustments required by GASB Statement No. 31 result in accounting gains or losses (called “recognized” gains or losses) which do not reflect actual sales of the investments (called “realized” gains or losses). Thus, recognized gains or losses on an investment purchased at par will now reflect changes in its value at each succeeding fiscal year end, but these recognized gains or losses will net to zero if the investment is held to maturity. By following the requirements of GASB Statement No. 31, the City is reporting the amount of resources which would actually have been available if it had been required to liquidate all of its investments at any fiscal year end. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 112 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 45 NOTE 3 – CASH AND INVESTMENTS (continued) E. Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurements and Application, provides the framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value with Level 1 given the highest priority and Level 3 the lowest priority. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the organization has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following: 1. Quoted prices for similar assets or liabilities in active markets. 2. Quoted prices for identical or similar assets or liabilities in markets that are not active. 3. Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). 4. Inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). Level 3 inputs are unobservable inputs for the asset or liability. Fair value of assets measured on a recurring basis at June 30, 2017, are as follows: June 30, 2017 Fair Value Quoted Prices in Active Markets for Identical Assets (Level1) Significant Other Observable Inputs (Level 2) Uncategorized (Level 3) U. S. Government Obligations 13,491,218$ -$ 13,491,218$ -$ Certificates of Deposit 12,299,032 - 12,299,032 - Broker Money Market Account 41,182 - 41,182 - United States Treasury Money Fund 2,268,923 - 2,268,923 - 28,100,355$ -$ 28,100,355$ -$ Investments measured at amortized cost LAIF 16,026,589 Total investments 44,126,944$ Fair values for investments are determined by using a matrix pricing technique. Matrix pricing is used to value securities based on the security’s relationship to benchmark quoted prices. Uncategorized investments do not fall under the fair value hierarchy as there is no active market for the investments. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 113 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 46 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments Investments for the City are summarized below: Investments Fair Value Percent of Portfolio U.S. Government Obligations 13,491,218$ 32% Certificates of Deposit 12,299,032 30% Broker Money Market Account 41,182 0% Local Agency Investment Fund (State Pool)16,026,589 38% Total Investments Managed by City 41,858,021$ 100% Investments Held by Fiscal Agents United States Treasury Money Fund 2,268,923$ 100% Total Investments Held by Fiscal Agents 2,268,923$ 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 13,491,218$ -$ -$ 499,986$ 12,991,232$ -$ Certificates of Deposit 12,299,032 - - 1,959,519 10,254,040 85,473 * Broker Money Market 41,182 - 41,182 - - - Local Agency Investment Fund (State Pool)16,026,589 16,026,589 - - - - Total Investments Managed by City 41,858,021$ 16,026,589$ 41,182$ 2,459,505$ 23,245,272$ 85,473$ Percentage of Portfolio 100%38%0%6%56%0% * $85,473 in certificates of deposit with a local bank, serving as collateral for the Local Road Improvement Loan Program, approved by Council June 14, 2005. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 114 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 47 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments (continued) Interest Rate Risk. This is the risk that the market value of securities in the portfolio will fall, due to changes in general interest rates. In accordance with its Investment Policy, the City mitigates interest rate risk by:  Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.  Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pool. Credit Risk. This is the risk of loss due to the failure of the security issuer or backer. The City mitigates credit risk by:  Limiting investments to the safest types of securities.  Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business.  Diversifying the investment portfolio so that potential losses on individual securities will be minimized. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by Nationally Recognized Statistical Rating Organizations (NRSROs). It is the City’s policy to limit its investments in these investment types to the top rating issued by NRSROs. The City does not hold any commercial paper or corporate bonds. U. S. Government Obligations held by the City are rated AAA, the top rating issued by NRSROs. The City’s investment in the State LAIF pool is unrated, as are the investments in Certificates of Deposit. Fair Value AAA Not Rated Investments U. S. Government Obligations 13,491,218$ 13,491,218$ -$ Certificates of Deposit 12,299,032 - 12,299,032 Local Agency Investment Fund (State Pool)16,026,589 - 16,026,589 Total Investments Managed by City 41,816,839$ 13,491,218$ 28,325,621$ Rating as of June 30, 2017 Custodial Credit Risk. Custodial credit risk is the risk that in the event of failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investments in government securities are held in trust by Union Bank and are exposed to custodial credit risk because these investments are uninsured and collateralized with securities held by the Union Bank’s trust department or agency, but not in the City’s name. The amounts held under this custodial arrangement are not limited by the City’s Investment Policy. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 115 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 48 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments (continued) Concentration Credit Risk. The City’s Investment Policy provides guidelines (by type of investment vehicle that limits either the dollar amount, the percent of the portfolio or the maturity term) for diversifying the investment portfolio so that potential losses on individual securities will be minimized. The City’s Investment Policy outlines the following criteria related to portfolio diversification:  No more than 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 and operating in the United States, have $500 million total assets, and have at least an “A” rating (by Moody’s or Standard and Poor’s) on debt other than commercial paper. The maturity period cannot exceed 270 days. Purchases of eligible commercial paper may not exceed 10% of the outstanding paper of an issuing corporation.  There is no limit as to the amount of the investment portfolio that may be deposited in certificates of deposit or passbook savings accounts. The minimum requirements for certificate of deposit investments shall be: o Investments and accrued interest shall never exceed the FDIC insurance limit in any one institution. o Qualified institutions must have a minimum equity ratio of 6% and a minimum capitalization of $10,000,000.  Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec 80a-l et seq.) shall not exceed twenty percent (20%) of the agency's surplus money that may be invested pursuant to the City’s Investment Policy. G. Funds with Fiscal Agents The City had $1,410,793 in cash and investments as of June 30, 2017, held by fiscal agents pledged for the payment or security of the 2010 Lease Revenue Bonds. There was an additional $858,130 held by fiscal agents for the 2004 Redevelopment Agency Tax Allocation Bonds in the Successor Agency to the Community Redevelopment Agency of Atascadero Private Purpose Trust Fund. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds, certificates, or leases, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of investments its fiscal agents may make. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 116 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 49 NOTE 4 – ADVANCES RECEIVABLE – SUCCESSOR AGENCY Receivable Fund Payable Fund Amount General Fund Successor Agency General Fund 1,375,175$ 2010 Bond Debt Service Fund Successor Agency General Fund 15,360,000 Total 16,735,175$ 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. See Note 15C – Successor Agency Trust for Assets of Former Redevelopment Agency, Loans Payable, for additional information. Advances receivable of $15,360,000 consists of a reimbursement agreement with the City for bond debt service. In September of 2010, the City issued bonds on behalf of the former Redevelopment Agency and entered into a reimbursement agreement at that time whereby the City advanced the former Agency the proceeds of the bond and the former Agency was required to make annual payments to the City in the amount of the debt service on the bonds. With the dissolution of redevelopment, this is now a debt of the Successor Agency and the Successor Agency will continue to make the required payments. See Note 15D – Successor Agency Trust for Assets of Former Redevelopment Agency, Bond Reimbursement Agreement Payable, for additional information. This arrangement meets the criteria of ABX1 26, Section 34171(d)(G)(2):  Written agreement entered into: o At the time of issuance, but no later than December 31, 2010, of indebtedness obligations o Solely for the purpose of securing or repaying those indebtedness obligations  Section 34171(e) defines “indebtedness obligation”: bonds, notes, certificates of participation, or other evidence of indebtedness, issued or delivered by the redevelopment agency, or by a joint exercise of powers authority created by the redevelopment agency, to third-party investors or bondholders to finance or refinance redevelopment projects undertaken by the redevelopment agency in compliance with the Community Redevelopment Law. NOTE 5 – NOTES RECEIVABLE Notes receivable in the amount of $120,000 is due from the Atascadero Land Preservation Society (ALPS) for the construction of the Three Bridges Trail Project. The loan shall be repaid after ALPS receives grant funding from the California Natural Resources Agency and the moneys are no longer needed for construction activities of the Project or within 180 days after the completion of the Project. No interest shall accrue on the loan. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 117 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 50 NOTE 6 – CAPITAL ASSETS A. Capital Assets Additions and Retirements Capital assets activity in the Governmental Activities for the fiscal year ended June 30, 2017, was as follows: Balance June 30, 2016 Additions Deletions Transfers Between Assets Balance June 30, 2017 Governmental Activities Non-Depreciable Capital Assets Land 40,855,264$ -$ -$ -$ 40,855,264$ Construction in progress 3,359,872 4,947,686 (10,370) (3,167,116) 5,130,072 Total non-depreciable capital assets 44,215,136 4,947,686 (10,370) (3,167,116) 45,985,336 Depreciable Capital Assets Vehicles and equipment 9,458,163 349,909 (108,567) 1,276,512 10,976,017 Structures and improvements 50,114,352 4,752 - 75,465 50,194,569 Infrastructure 63,317,903 6,265 (244,204) 1,815,139 64,895,103 Total depreciable capital assets 122,890,418 360,926 (352,771) 3,167,116 126,065,689 Less Accumulated Depreciation (40,080,895) (3,097,883) 273,813 - (42,904,965) Net depreciable capital assets 82,809,523 (2,736,957) (78,958) 3,167,116 83,160,724 Net governmental capital assets 127,024,659$ 2,210,729$ (89,328)$ -$ 129,146,060$ ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 118 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 51 NOTE 6 – CAPITAL ASSETS (continued) A. Capital Assets Additions and Retirements (continued) Capital assets activity in the Business-Type Activities for the fiscal year ended June 30, 2017, was as follows: Balance June 30, 2016 Additions Deletions Transfers Between Assets Balance June 30, 2017 Business-Type Activities Non-Depreciable Capital Assets Land 442,044$ -$ -$ -$ 442,044$ Construction in progress 65,702 45,416 - - 111,118 Total non-depreciable capital assets 507,746 45,416 - - 553,162 Depreciable Capital Assets Vehicles and equipment 717,903 384,825 - - 1,102,728 Structures and improvements 28,985,980 32,902 - - 29,018,882 Total depreciable capital assets 29,703,883 417,727 - - 30,121,610 Less Accumulated Depreciation (14,604,800) (822,701) - - (15,427,501) Net depreciable capital assets 15,099,083 (404,974) - - 14,694,109 Net business-type capital assets 15,606,829$ (359,558)$ -$ -$ 15,247,271$ ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 119 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 52 NOTE 6 – CAPITAL ASSETS (continued) B. Depreciation Allocations Depreciation expense was charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program were as follows: Governmental Activities: General government 327,224$ Public safety 499,695 Community development 238,224 Community, recreation & zoo services 359,070 Parks & open space 145,868 Public works 1,527,802 Total Depreciation Expense- Governmental Activities 3,097,883$ Sewer 746,032$ Transit 76,669 Total Depreciation Expense- Business-Type Activities 822,701$ Business-Type Activities: ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 120 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 53 NOTE 7 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS A. Interfund Receivables and Payables Due to/due from other funds consist of short-term interfund loans made for the purposes of cash flows. They are expected to be repaid by the borrowing fund within one year. The composition of due to/due from balances at June 30, 2017, is as follows: Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Funds 678,857$ General Fund Transit Fund 214,243 Nonmajor Governmental Funds Fire Aerial Vehicle Impact Fees Fund 840,984 Total 1,734,084$ B. Interfund Transfers Interfund transfers were made as follows: Actual Description 494,190$ Transfer from the Community Facilities District Fund to the General Fund for fire, police and park services 168,000 Transfer from the General Fund to the Gas Tax Fund for the cost of Streets Department operations 1,400 Transfer from the General Fund to the De Anza Landscape & Lighting Fund for open space maintenance 23,840 Transfer from the Local Transportation Fund to the Capital Projects Fund for the Highway 41 Multipurpose Pathway Project 687,430$ Interfund Transfers June 30, 2017 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 121 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 54 NOTE 8 – 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, 2017, total $1,284,335 for governmental activities and $26,925 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 the City using these revenues. The following is a summary of principal and interest payments to be made in future fiscal years: Fiscal Year Ending June 30,Principal Interest 2018 $ 235,000 $ 739,825 2019 245,000 730,813 2020 250,000 721,537 2021 260,000 712,288 2022 270,000 702,012 2023-2027 1,520,000 3,320,331 2028-2032 1,920,000 2,914,000 2033-2037 4,190,000 2,285,250 2038-2041 6,470,000 667,000 $ 15,360,000 $ 12,793,056 2010 Lease Revenue Bonds ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 122 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 55 NOTE 8 – LONG-TERM DEBT (continued) C. Changes in Long-Term Liabilities Long-term liability activity for the fiscal year ended June 30, 2017, was as follows: Balance June 30, 2016 Additions Payments Balance June 30, 2017 Due Within One Year Governmental Activities Bonds Payable: 15,585,000$ -$ (225,000)$ 15,360,000$ 235,000$ Compensated Absences 1,139,765 1,057,039 (912,469) 1,284,335 - Premium on 2010 Lease Revenue Bonds 72,376 - (2,982) 69,394 2,982 75,111 - (40,351) 34,760 - Net Pension Liability 18,546,152 6,636,455 (2,230,933) 22,951,674 - Other Post Employment Benefits 152,794 41,106 (7,800) 186,100 - Total Governmental Activities 35,571,198$ 7,734,600$ (3,419,535)$ $ 39,886,263 237,982$ Business-type Activities Compensated Absences 23,970$ 36,099$ (33,144)$ 26,925$ -$ Net Pension Liability 553,340 78,492 (25,014) 606,818 - Total Business-type Activity $ 577,310 114,591$ $ (58,158) $ 633,743 -$ 2010 Lease Revenue Bonds Workers' Compensation estimated claims liability in excess of deposits NOTE 9 - EMPLOYEE RETIREMENT BENEFITS A. Public Employees’ Retirement System Summary of Significant Accounting Policies-Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions and pension expense, information about the fiduciary net position of the City of Atascadero’s California Public Employees’ Retirement System (CalPERS) Plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 123 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 56 NOTE 9 - EMPLOYEE RETIREMENT BENEFITS (continued) A. Public Employees’ Retirement System (continued) Plan Descriptions All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City of Atascadero sponsors six rate plans (three miscellaneous and three safety.) Benefit provisions under the Plan are established by State statue and City of Atascadero resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website at www.calpers.ca.gov. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited services, equal to a fixed percentage of their highest annual salary formula as determined by the benefit program they participate in. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The rate plan provisions and benefits in effect at June 30, 2017, 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 10.808%9.055%6.93% Miscellaneous Plan ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 124 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 57 NOTE 9 - EMPLOYEE RETIREMENT BENEFITS (continued) A. Public Employees’ Retirement System (continued) Benefits Provided (continued) Tier 1 Tier 2 Tier 3 Hire date Prior to July 1, 2012 On or after July 1, 2012 On or after January 1, 2013 Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50-55 50-57 Monthly benefits, as a % of eligible compensation 3.0%2.4% to 3.0%2.0% to 2.7% Required employee contribution rates 9.00%9.00%11.50% Required employer contribution rates 19.54%16.66%12.08% Safety Plan Contributions- Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of the employees. The City’s contributions to the Plan for the fiscal year ended June 30, 2017, were $2,489,485. Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund. The dollar amount was paid at the beginning of the fiscal year. The City of Atascadero’s required contribution for the unfunded liability and side fund was $1,208,132 in fiscal year 2017. B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2017, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $23,558,492. 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, 2016, 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, 2015, rolled forward to June 30, 2016 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, 2015 and 2016 was as follows: ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 125 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 58 NOTE 9 - EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) June 30, 2017 June 30, 2016 Measurement Date 6/30/2016 6/30/2015 Percentage of Plan (PERF C) Net Pension Liability 0.272255%0.278260%-0.006005% Change: Increase/ (Decrease) Percentage share of Risk Pool Proportionate Percentage Share of Net Pension Liability For the fiscal year ended June 30, 2017, the City recognized pension expense of $2,321,658. At June 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between actual and expected experience -$ 82,877$ Changes of assumptions - 769,690 Net differences between projected and actual earnings on plan investments 3,869,349 - Change in employer's proportion 1,200,969 156,492 Differences between the employer's contributions and the employer's proportionate share of contributions 204,368 - Pension contributions subsequent to measurement date 2,489,485 - Total 7,764,171$ 1,009,059$ All Plans ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 126 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 59 NOTE 9 - EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) $2,489,485 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended June 30, Deferred Outflows / (Inflows) of Resources 2018 758,770$ 2019 751,023 2020 1,750,592 2021 1,005,242 Actuarial Assumptions – For the measurement period ended June 30, 2016, the total pension liabilities were determined by rolling forward the June 30, 2015 total pension liability. The June 30, 2016 total pension liabilities were based on the following actuarial methods and assumptions: Valuation Date Measurement Date Actuarial Cost Method Actuarial 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, 2015 June 30, 2016 Entry Age Normal in accordance with the requirements of GASB Statement No. 68 7.65% ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 127 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 60 NOTE 9 - EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) Actuarial Assumptions (continued) The mortality table used was developed based on CalPERS’ specific data. This table includes 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, 2015 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 There were no changes of assumptions during the measurement period ended June 30, 2016. Deferred inflows of resources for changes of assumptions presented in the Schedule of Collective Pension Amounts represents the unamortized portion of the changes of assumptions related to prior measurement periods. Discount Rate The discount rate used to measure the total pension liability was 7.65%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for public agency plans (including PERF C), the amortized and smoothing periods recently adopted by the CalPERS Board were used. For the Plan, the crossover test was performed for a miscellaneous agent rate plan and a safety agent rate plan selected as being more at risk of failing the crossover test and resulting in a discount rate that would be different from the long-term expected rate of return on investments. Based on the testing of the rate plans, the tests revealed the assets would not run out. Therefore, the long-term expected rate of return on pension plan investment was applied to all periods of projected benefit payments to determine the total pension liability for PERF C. The crossover test results are presented in the detailed report called, “GASB Crossover Testing Report” that can be obtained on 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. 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. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 128 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 61 NOTE 9 - EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) The following table reflects long-term expected real rate of return by asset class. The rates of return were calculated using the capital market assumptions applied to determine the discount rate and asset allocation. Asset Class Assumed Asset Allocation Real Return Years 1-10 (a) Real Return Years 11+ (b) Global Equity 51.0%5.25%5.71% Global Debt Securities 20.0%0.99%2.43% Inflation Assets 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 1.0%-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: 6.65% (1% Decrease) 7.65% (Current Rate) 8.65% (1% Increase) Measurement Date Fiscal Year End Net Pension Liability 34,807,244$ 23,558,492$ 14,297,563$ Discount Rate 6/30/2016 6/30/2017 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 129 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 62 NOTE 9 - EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued) Pension Plan Fiduciary Net Position Detailed information about the Plan’s fiduciary net positions is available in separately issued CalPERS financial reports. C. Payable to the Pension Plan The City paid 100% of the required actuarially determined contributions for the fiscal year ending June 30, 2017, 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 $12,678, and total contributions from the City were $4,339. Nationwide Retirement Solutions is the public employee plan subsidiary of Nationwide Financial Services, Inc. (NYSE: NFS). NOTE 10 – OTHER POST EMPLOYMENT BENEFITS Plan Description In addition to the CalPERS pension benefits described above, the City provides post-retirement health benefits for Executive Management (City Council, City Manager, Deputy City Managers, and Department Heads). The City agreed to reimburse the retiree for retiree and/or retiree’s dependent health (medical/dental/vision) insurance premiums, disability insurance, long-term health care or life insurance premiums up to a maximum of $200 per month. The benefit is available upon retirement from CalPERS or other similar retirement program after age 50, and the employee must have served for eight years with the City. The benefit extends between the date of retirement and age 65. Currently, there are four people receiving benefits and sixteen 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, 2017, the City’s total contributions were $7,800. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 130 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 63 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (continued) Annual OPEB Cost and Net OPEB Obligation The City‘s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC). The City has elected to calculate the ARC and related information using the alternative measurement method permitted by GASB Statement 45 for employers in plans with fewer than one hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the current year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation for the postemployment healthcare benefits: Annual required contribution 29,442$ Interest on net OPEB obligation 4,584 Adjustment to annual required contribution 7,080 Annual OPEB cost (expense)41,106 Contributions made (7,800) Increase (decrease in net OPEB obligation 33,306 Net OPEB obligation, beginning of year 152,794 Net OPEB obligation, end of year 186,100$ The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal years 2015, 2016, and 2017 were as follows: For Fiscal Year Ended June 30, Annual OPEB Cost Contributions % of Annual OPEB Cost Contributed Net OPEB Obligation 2015 2,642$ 4,800$ 181.7%143,019$ 2016 14,575$ 4,800$ 32.9%152,794$ 2017 41,106$ 7,800$ 19.0%186,100$ ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 131 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 64 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (continued) Funded Status and Funding Progress As of June 30, 2017, the actuarial accrued liability for benefits was $186,100 all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $1,114,922, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 16.7 percent. The projection of future benefit payments 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 employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value assets, consistent with the long-term perspective of the calculations. The following simplifying assumptions were made: Retirement age for active employees – Based on the historical average retirement age for the covered group, public safety active plan members were assumed to retire at age 50, or at the first subsequent year in which the member would qualify for benefits and other active plan members were assumed to retire at age 55, or at the first subsequent year in which the member would qualify for benefits. Mortality – All active and inactive plan members were expected to live through age 65 (the age that benefits terminate). Turnover – 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, 2017, was twenty- seven years. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 132 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 65 NOTE 11 – 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 approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future years by the voters. NOTE 12 - RISK MANAGEMENT A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Atascadero is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 117 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. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. Primary Liability Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $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 costs 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 costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. For 2016-17 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to $20 million, and excess insurance to $50 million. The Authority’s reinsurance contracts are subject to the following additional pooled retentions: (a) $2.5 million annual aggregate deductible in the $3 million in excess of $2 million layer, and (b) $3 million annual aggregate deductible in the $5 million in excess of $10 million layer. There is a third annual aggregate deductible in the amount of $2.5 million in the $5 million in excess of $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 covered claims for subsidence losses have a sub-limit of $30 million per occurrence. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 133 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 66 NOTE 12 - RISK MANAGEMENT (continued) B. Self-Insurance Programs of the Authority (continued) Workers’ Compensation Program Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $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 the first and second loss layers. For 2016-17 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 part 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 an aggregate 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 policy term. 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 $80,979,968. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. Crime Insurance The City of Atascadero purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Special Event Tenant User Liability Insurance The City of Atascadero further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Atascadero according to a schedule. The City of Atascadero then pays for the insurance. The insurance is facilitated by the Authority. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 134 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 67 NOTE 12 - RISK MANAGEMENT (continued) D. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2016-17. E. Unemployment The City is fully self-insured for unemployment claims. F. Self Insurance The City retains the risk for losses incurred prior to joining the Authority. Several member agencies of the now dissolved Central Coast Cities Self- Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance for claims prior to joining the Authority. Losses are debited and investment income is credited to specific member accounts. The City has not incurred any losses in excess of insurance coverage. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 135 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 68 NOTE 12 - RISK MANAGEMENT (continued) F. Self Insurance (continued) Self-insurance activity as of and for the fiscal year ended June 30, 2017, is summarized as follows: Workers' Compensation Interest earnings and other income 1,844$ Claims expense 44,362 Estimated liability for reported claims and settlement expenses 303,768 Assets on deposit 269,008 Assets in excess of (less than) liabilities (34,760)$ Workers' Compensation Deposits 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) Claim payments and related expenditures (44,362) (Increase) in estimated claims liability June 30, 2017 82,869 Deposits and interest earnings 1,844 Deposits (unpaid claims liability) June 30, 2017 (34,760)$ Changes in the balances of claim liabilities during the past two fiscal years are as follows: ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 136 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 69 NOTE 13 – 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 Simeon Earthquake. The report questioned $8,014,375 of funding that the FEMA determined as eligible. FEMA responded to OIG on December 3, 2012, and disagreed with OIG’s findings to disallow funding of $8,013,063. FEMA later changed their response on the Temporary Relocation Item and deobligated funding in the amount of $2,654,978. On September 17, 2013, the City formally appealed the Temporary Relocation deobligation decision and requested reinstatement of funding of $2,654,978. On September 20, 2017, the City received notice that the appeal had been partially approved and FEMA reinstated $2,281,382 in Temporary Relocation funding for Project Worksheet 239. All other projects have been completed and the City is awaiting final payment of Temporary Relocation funding and project contingencies. The City had received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that other than the above mentioned issue, any required reimbursements will not be material. According to the City's attorney, no contingent liabilities are outstanding and no lawsuits of any significant financial consequence are pending or the risks are covered by the City’s insurance programs. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 137 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 70 NOTE 13 – CONTINGENCIES AND COMMITMENTS (continued) Construction and other significant commitments as of June 30, 2017, including encumbrances outstanding at fiscal year-end, are as follows: Capital Commitments Fiscal Year 2016/2017 100 General Fund 308,374$ 201 Community Facilities District Fund 1,802 202 Apple Valley Street & Storm Drain Assessment District Fund 1,465 203 Apple Valley Landscape & Lighting Assessment District Fund 1,888 204 Las Lomas Street & Storm Drain Assessment District Fund 1,465 205 Las Lomas Landscape & Lighting Assessment District Fund 1,888 206 De Anza Street & Storm Drain Assessment District Fund 1,465 207 De Anza Landscape & Lighting Assessment District Fund 1,888 265 Local Transportation Fund 1,131,011 281 Circulation System Fees Fund 664,774 285 Fire Impact Fees Fund 11,365 288 Public Facilities Fund 16,080 315 2010 Bond Proceeds Master Agreement Fund 1,889,285 527 Wastewater Fund 93,269 529 Transit 73,978 680 Vehicle & Equipment Replacement Fund 39,328 690 Technology 261,586 Total 4,500,911$ ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 138 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 71 NOTE 14 – NET POSITION GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified as either net investment in capital assets, restricted, or unrestricted. Net position that is net investment in capital assets consist of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt. Restricted net position is the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislation. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position. Net Position Net Position is the excess of all the City’s assets over all its liabilities, regardless of fund. Net Position is divided into three captions under GASB Statement No. 34. These captions apply only to Net Position, which is determined only at the government-wide level, and are described below: Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets. Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include fees received for use on capital projects, debt service requirements, and redevelopment funds restricted to low and moderate income purposes. Restricted Net Position includes $37,662,122 restricted by enabling legislation. Unrestricted describes the portion of Net Position which is not restricted as to use. NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1x 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Atascadero, which had previously reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that, upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution Number 2012-002. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 139 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 72 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of 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 of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. 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 authority 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 governmental fund financial statements in fiscal year 2011-2012. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private purpose trust fund as an extraordinary gain in the fiscal year 2011-2012. The Successor Agency received a Finding of Completion (FOC) from the State Department of Finance on March 8, 2013. In order to be eligible for the FOC, the Successor Agency had to meet the following requirements:  pay the housing fund balance as determined by Due Diligence Review;  pay the non-housing fund balance as determined by Due Diligence Review; and  pay the balance of any outstanding pass-through obligations and residual payments. ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 140 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 73 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) A. Notes Receivable The Housing Successor Agency is holding $200,000 in Notes Receivable as part of the Downtown Stimulus Program. The former Redevelopment Agency used the Downtown Stimulus Program as a tool to encourage investors to provide affordable housing in the downtown area. Neither the principal nor interest shall be payable under the Note for the term of 55 years; or until such time as the Program Participant sells or otherwise transfers the site. The Notes will be forgiven in full after the period of 55 years. B. Capital Assets Capital assets activity in the Private Purpose Trust Funds for the fiscal year ended June 30, 2017, was as follows: Balance June 30, 2016 Additions Deletions Balance June 30, 2017 Fiduciary Funds Non-Depreciable Capital Assets Land 413,791$ -$ -$ 413,791$ Total non-depreciable capital assets 413,791 - - 413,791 Depreciable Capital Assets Structures and improvements 2,369,216 - (8,287) 2,360,929 Total depreciable capital assets 2,369,216 - (8,287) 2,360,929 Less Accumulated Depreciation (230,162) (52,112) 3,765 (278,509) Net depreciable capital assets 2,139,054 (52,112) (4,522) 2,082,420 Net fiduciary-type capital assets 2,552,845$ (52,112)$ (4,522)$ 2,496,211$ ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 141 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 74 NOTE 15 – 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 the Agency the proceeds of the bond and the Agency is required to make annual payments to the City in the amount of the debt service on the bonds. Annual principal payments on the advance are required between fiscal years 2015 and 2041, at interest rates ranging from 3.0% to 5.0%. See Note 8B – Long Term 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 downtown 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-2 DATE: 01/23/18 ATTACHMENT: 1 Page 142 of 242 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2017 75 NOTE 15 – 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 2018 $ 365,000 $ 475,375 2019 380,000 459,168 2020 400,000 441,808 2021 415,000 423,262 2022 435,000 403,930 2023-2027 2,505,000 1,682,746 2028-2032 3,180,000 990,256 2033-2035 2,315,000 177,375 $ 9,995,000 $ 5,053,920 2004 Redevelopment Agency Tax Allocation Bonds ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 143 of 242 REQUIRED SUPPLEMENTARY INFORMATION ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 144 of 242 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, 2017 Original Final Actual Amounts Revenues: Secured and unsecured property taxes 8,570,640$ 8,570,640$ 8,927,672$ 357,032$ Taxes based on sales and use 5,492,690 5,492,690 5,739,447 246,757 Franchise tax 1,042,450 1,042,450 1,168,572 126,122 Other taxes 1,260,080 1,260,080 1,656,652 396,572 Licenses and permits 698,540 698,540 542,181 (156,359) Intergovernmental revenues: Motor vehicle in-lieu and related payments 11,500 11,500 13,833 2,333 Grants 22,470 22,470 13,455 (9,015) Other governmental revenues 77,680 157,680 125,865 (31,815) Charges for services: Public safety 488,940 700,310 661,383 (38,927) Development 529,890 639,880 728,993 89,113 Recreation, parks, pavilion and zoo 810,430 884,050 898,973 14,923 Other services 50,100 50,100 56,654 6,554 Fines and forfeitures 132,640 132,640 76,981 (55,659) Use of money and property 65,080 65,080 9,801 (55,279) Other revenues 1,221,900 1,274,060 1,477,424 203,364 Total revenues 20,475,030 21,002,170 22,097,886 1,095,716 Expenditures: Employee services 14,215,660 14,678,440 14,213,908 464,532 Operating supplies & services 4,911,150 4,917,300 4,728,276 189,024 Special purchases, projects and community funding 279,970 1,439,450 1,351,509 87,941 Capital outlay 3,717,400 4,188,080 2,375,095 1,812,985 Total expenditures 23,124,180 25,223,270 22,668,788 2,554,482 Excess of revenues over (under) expenditures (2,649,150) (4,221,100) (570,902) 3,650,198 Budget Variance with Final Budget Positive (Negative) 76 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 145 of 242 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, 2017 Original Final Actual Amounts Other Financing Sources (Uses): Transfers in 494,190$ 494,190$ 494,190$ -$ Transfers out (242,660) (242,660) (169,400) 73,260 Total other financing sources and uses 251,530 251,530 324,790 73,260 Net changes in fund balance (2,397,620)$ (3,969,570)$ (246,112) 3,723,458$ Fund balance - June 30, 2016 11,638,707 Fund balance - June 30, 2017 11,392,595$ Budget Variance with Final Budget Positive (Negative) 77 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 146 of 242 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2017 Original Final Actual Amounts Revenues: Taxes: Property taxes: Secured property tax 5,593,890$ 5,593,890$ 5,712,108$ 118,218$ Property tax in lieu of VLF 2,530,140 2,530,140 2,596,002 65,862 Unsecured property taxes 149,500 149,500 147,249 (2,251) Supplemental property taxes 152,710 152,710 193,007 40,297 149,400 149,400 283,066 133,666 Prior year secured and unsecured (5,000) (5,000) (3,484) 1,516 Property tax penalties and interest - - (276) (276) Taxes based on sales: Sales and use taxes 3,543,690 3,543,690 3,620,027 76,337 Measure F-14 Sales Tax 1,949,000 1,949,000 2,119,420 170,420 Transient occupancy tax 954,700 954,700 1,337,528 382,828 Franchise taxes: Cable television franchise fees 221,770 221,770 354,668 132,898 Electricity franchise fees 231,200 231,200 247,698 16,498 Garbage disposal franchise fees 360,420 360,420 390,215 29,795 Landfill franchise fees 38,630 38,630 39,941 1,311 Recycling franchise fees 18,230 18,230 20,302 2,072 Gas franchise fees 135,000 135,000 77,497 (57,503) Wastewater franchise fees 37,200 37,200 38,251 1,051 Business licenses 162,000 162,000 165,542 3,542 Property transfer tax 143,380 143,380 153,582 10,202 Total Taxes 16,365,860 16,365,860 17,492,343 1,126,483 Licenses and Permits: Construction permits 591,280 591,280 455,874 (135,406) Grading and drainage permits 37,340 37,340 33,483 (3,857) Encroachment permits 56,010 56,010 38,070 (17,940) Tree application fees 11,370 11,370 11,114 (256) Planning Inspections 2,540 2,540 3,640 1,100 Total Licenses and Permits 698,540 698,540 542,181 (156,359) Redevelopment Agency Dissolution- residual distribution Budget Variance with Final Budget Positive (Negative) 78 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 147 of 242 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, 2017 Original Final Actual Amounts Revenues (continued): Intergovernmental Revenues: Motor vehicle in-lieu (VLF)11,500$ 11,500$ 13,833$ 2,333$ Homeowners' tax relief 45,680 45,680 45,289 (391) State mandated costs 7,000 7,000 576 (6,424) P.O.S.T. reimbursement 25,000 25,000 - (25,000) School Resources Officer - 80,000 80,000 - Grants: Fire Safe Council grant 16,730 16,730 9,315 (7,415) BSCC Realignment 4,140 4,140 4,140 - Bulletproof Vest Grant 1,600 1,600 - (1,600) Total Intergovernmental Revenues 111,650 191,650 153,153 (38,497) Charges for Services: Public safety: First response charges 112,290 112,290 113,179 889 Weed abatement services 93,000 93,000 34,055 (58,945) Mutual Aid 250,000 455,520 473,670 18,150 Police/Fire false alarms 2,200 2,200 5,763 3,563 Fire classes - 5,850 8,314 2,464 Fingerprints 11,000 11,000 7,779 (3,221) Vehicle release fees 16,000 16,000 13,377 (2,623) Other public safety services 4,450 4,450 5,246 796 Budget Variance with Final Budget Positive (Negative) 79 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 148 of 242 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, 2017 Original Final Actual Amounts Revenues (continued): Charges for Services (continued): Development: Zoning fees 35,530$ 35,530$ 52,982$ 17,452$ Subdivision fees- Planning 25,380 25,380 52,409 27,029 Subdivision fees- Public Works 7,470 7,470 13,491 6,021 General and specific plans 11,490 11,490 - (11,490) EIR and annexations fees - 26,730 53,236 26,506 Appeals 960 960 4,570 3,610 Assessment District Formation & Annexes - 10,130 10,130 - Planning review 43,490 47,740 47,740 - Building plan check fees 246,370 301,650 301,653 3 Public Works plan check fees 67,220 80,820 130,118 49,298 Fire plan check & inspection fees 67,220 67,220 57,282 (9,938) Public improvements revenue 23,030 23,030 1,691 (21,339) Other planning fees 1,730 1,730 3,691 1,961 Recreation: Advertising - 7,440 7,445 5 Aquatics 29,900 29,900 3,702 (26,198) Adult sports 40,800 40,800 41,845 1,045 Youth sports 57,000 63,370 66,448 3,078 Classes 125,000 130,390 167,250 36,860 Special events 32,000 54,830 54,836 6 Special events- Zoo 2,500 30,530 33,200 2,670 Teen Center membership 2,500 2,500 2,871 371 Rentals & concessions: Pavilion facility rentals 86,640 86,640 108,143 21,503 Other Pavilion rents and concessions 27,830 30,830 10,669 (20,161) Colony Park Community Center rentals 18,550 18,550 18,395 (155) Historic City Hall Rentals - - 656 656 Other facility rentals 3,400 3,400 6,435 3,035 Park charges 28,990 25,990 32,546 6,556 Zoo: Zoo admissions 243,600 243,600 231,566 (12,034) Zoo educational programs 10,500 10,500 9,716 (784) Zoo gift shop 101,220 101,220 99,682 (1,538) Other Zoo revenues - 3,560 3,568 8 Budget Variance with Final Budget Positive (Negative) 80 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 149 of 242 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, 2017 Original Final Actual Amounts Revenues (continued): Charges for Services (continued): Administrative: Copy and mailing fees 5,730$ 5,730$ 7,078$ 1,348$ Filming Permit - - 2,253 2,253 Document imaging fee 22,740 22,740 18,528 (4,212) Business license application fees 21,630 21,630 28,795 7,165 Total Charges for Services 1,879,360 2,274,340 2,346,003 71,663 Fines and Forfeitures: Motor vehicle fines 70,000 70,000 51,059 (18,941) Traffic school fines 2,500 2,500 - (2,500) Misdemeanor and other minor fines 8,540 8,540 6,386 (2,154) Parking fines 1,500 1,500 1,722 222 Fire and code enforcement fines 400 400 100 (300) Business license penalties 7,200 7,200 8,137 937 Other penalties 42,500 42,500 9,577 (32,923) Total Fines and Forfeitures 132,640 132,640 76,981 (55,659) Use of Money and Property: Interest 61,000 61,000 70,811 9,811 Adjustment to Market Value-GASB 31 - - (67,580) (67,580) Interest on Measure F-14 Funds 4,080 4,080 27,947 23,867 Measure F-14 Funds Adjustment to Market Value - - (21,377) (21,377) Total Use of Money and Property 65,080 65,080 9,801 (55,279) Other Revenues: Interfund administrative charges General overhead charges 361,790 361,790 361,790 - Staffing charges for other funds 418,580 416,650 412,564 (4,086) Staffing charges for capital projects 206,000 206,000 155,800 (50,200) Staffing charges for CDBG administration 10,790 10,790 6,659 (4,131) Administrative charges- Third Parties 100 100 202 102 Administrative charges- Successor Agency - - 250,000 250,000 Workers' comp reimbursement 15,300 15,300 28,476 13,176 Miscellaneous revenue 10,730 12,660 19,651 6,991 Budget Variance with Final Budget Positive (Negative) 81 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 150 of 242 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, 2017 Original Final Actual Amounts Revenues (continued): Other Revenues (continued): Donations: Police -$ 1,990$ 1,865$ (125)$ Fire 172,610 217,230 212,751 (4,479) Recreation - 1,390 1,882 492 Other donations 1,000 1,000 1 (999) Friends of Zoo Donations: Memberships 23,000 23,000 20,091 (2,909) Zoo Wine Festival Donations: New Madagascar Exhibit - 4,160 4,158 (2) Other Zoo donations 2,000 2,000 1,534 (466) Total Other Revenues 1,221,900 1,274,060 1,477,424 203,364 Total Revenues 20,475,030 21,002,170 22,097,886 1,095,716 Variance with Final Budget Positive (Negative) Budget 82 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 151 of 242 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, 2017 Original Final Actual Amounts Expenditures: City Council: Salaries and benefits 42,210$ 41,520$ 38,371$ 3,149$ Office expense 520 520 466 54 Advertising 500 - - - Computer maintenance and replacement 3,870 3,870 3,870 - Occupancy 40,420 40,420 40,420 - Communications 350 360 356 4 Operating supplies 3,710 3,940 3,936 4 Vehicle & equipment operating costs 200 - - - Contract services 36,500 36,500 36,000 500 Professional development 23,450 31,390 31,384 6 Community outreach 52,100 35,310 35,308 2 Chamber of Commerce 88,360 106,950 106,941 9 Business development 16,260 6,980 5,000 1,980 LAFCO contribution 19,000 19,000 16,637 2,363 Special projects & community funding: Promotions 200,000 225,660 225,651 9 Total City Council 527,450 552,420 544,340 8,080 City Clerk: Salaries and benefits 2,510 8,140 6,114 2,026 Office expense 640 680 676 4 Advertising 5,300 5,260 3,835 1,425 Contract services 6,100 6,100 4,441 1,659 Professional development 6,270 6,270 3,157 3,113 Municipal election 30,160 30,160 20,923 9,237 Total City Clerk 50,980 56,610 39,146 17,464 Budget Variance with Final Budget Positive (Negative) 83 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 152 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): City Treasurer: Salaries and benefits 3,190$ 4,380$ 4,373$ 7$ Office expense 100 - - - Contract services 10,000 10,480 10,475 5 Professional development 420 1,090 1,089 1 Total City Treasurer 13,710 15,950 15,937 13 City Attorney: Office expense 90 80 2 78 Communications 70 70 65 5 Contract services 260,000 334,320 334,314 6 Total City Attorney 260,160 334,470 334,381 89 City Manager: Salaries and benefits 851,690 870,460 829,063 41,397 Office expense 7,730 7,710 6,925 785 Computer maintenance and replacement 41,160 45,920 45,918 2 Insurance 10,160 10,160 8,354 1,806 Occupancy 27,710 27,710 27,710 - Communications 2,180 2,180 1,980 200 Operating supplies 10,080 10,050 7,203 2,847 Vehicle & equipment operating costs 6,270 6,270 6,220 50 Contract services 35,070 30,330 10,824 19,506 Professional development 22,270 22,270 12,649 9,621 Citywide training 4,000 4,000 2,203 1,797 Recruitment 500 500 236 264 Employee development 1,650 1,680 1,676 4 Contingency 100,000 - - - Total City Manager 1,120,470 1,039,240 960,961 78,279 Budget Variance with Final Budget Positive (Negative) 84 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 153 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Administrative Services: Salaries and benefits 763,820$ 751,360$ 722,793$ 28,567$ Office expense 16,690 12,710 12,428 282 Advertising 390 390 185 205 Computer maintenance and replacement 75,970 76,590 76,585 5 Insurance 14,720 14,720 12,375 2,345 Occupancy 42,380 42,380 40,856 1,524 Communications 1,030 1,030 812 218 Operating supplies 240 240 46 194 Vehicle & equipment operating costs 3,650 3,650 3,625 25 Contract services 179,620 167,710 167,706 4 Professional development 7,890 6,520 4,847 1,673 Recruitment - 310 301 9 Safety Committee 500 500 - 500 Contingency 5,000 - - - Special purchases, projects & studies: Desks - 430 427 3 Chairs 2,300 2,300 - 2,300 Development Impact Fee Study 35,000 35,000 - 35,000 Total Administrative Services 1,149,200 1,115,840 1,042,986 72,854 Police: Salaries and benefits 5,312,800 5,426,070 5,252,844 173,226 Office expense 14,820 16,620 16,617 3 Computer maintenance and replacement 293,320 298,230 298,222 8 Insurance 241,550 241,550 235,858 5,692 Occupancy 40,520 51,450 51,444 6 Utilities 39,750 39,750 36,366 3,384 Communications 30,400 31,370 31,362 8 Operating supplies 20,530 27,800 27,800 - Vehicle & equipment operating costs 284,740 218,580 218,579 1 Contract services 282,350 272,220 266,342 5,878 Professional development 10,000 18,950 18,944 6 Recruitment 10,050 13,890 13,882 8 Contingency 10,000 10,000 - 10,000 Budget Variance with Final Budget Positive (Negative) 85 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 154 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Police (continued): Special purchases, projects & studies: Desks -$ 3,710$ 3,708$ 2$ Other office furniture - 3,230 3,221 9 Refrigerator - 870 862 8 Personal protective vests - 10,010 10,008 2 Flooring projects - 15,960 15,955 5 Capital outlay: - 7,980 7,980 - 6,590,830 6,708,240 6,509,994 198,246 Police Grants: Operating supplies 2,080 1,850 1,850 - Contract services 2,040 2,420 2,414 6 Professional development 34,380 36,220 28,213 8,007 Special purchases, projects & studies: Personal protective vests 3,190 3,190 - 3,190 Capital outlay: 4,140 - - - 45,830 43,680 32,477 11,203 Total Police 6,636,660 6,751,920 6,542,471 209,449 Fire: Salaries and benefits 3,488,960 3,578,540 3,578,518 22 Office expense 4,880 8,300 8,291 9 Computer maintenance and replacement 169,700 185,030 185,027 3 Insurance 70,500 61,980 61,977 3 Occupancy 27,740 22,980 22,978 2 Utilities 22,300 22,390 22,383 7 Communications 16,300 18,410 18,401 9 Operating supplies 43,900 47,550 47,549 1 148,880 122,250 122,242 8 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 86 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 155 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Fire (continued): Contract services 20,000$ 19,530$ 19,525$ 5$ Professional development 24,980 21,890 21,883 7 Recruitment 400 8,210 8,205 5 Contingency 10,000 - - - Special purchases, projects & studies: Dishwasher - 1,060 1,054 6 Television - 630 632 (2) Sheds - 1,370 1,367 3 Capital outlay: 21,010 21,010 1,281 19,729 4,069,550 4,141,130 4,121,313 19,817 Mutual Aid Program: Salaries and benefits 139,640 361,190 361,178 12 Office expenses 30 - - - Operating supplies 27,720 7,830 7,822 8 Vehicle & equipment operating costs - 5,560 5,558 2 Contract services 1,000 - - - Special purchases, projects & studies: Fire hose - 1,590 1,582 8 168,390 376,170 376,140 30 Weed Abatement and Other Fire Programs: Salaries and benefits - 1,630 1,620 10 Office expense 800 1,300 1,297 3 Advertising 500 - - - Communications - - - - Operating supplies - 2,610 2,599 11 Vehicle & equipment operating costs - 2,220 2,207 13 Contract services 70,000 79,780 62,788 16,992 Special purchases, projects & studies: San Marcos shaded fuel break 6,910 6,910 - 6,910 ALPS/Chandler Ranch fuel break 9,820 5,510 5,030 480 Budget Variance with Final Budget Positive (Negative) Cash contribution to Vehicle & Equipment Maintenance Fund for Breathing Apparatus 87 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 156 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Weed Abatement and Other Fire Programs (continued): Capital outlay: Rescue equipment -$ 12,320$ 12,312$ 8$ EKG monitors 145,500 145,500 141,053 4,447 Disaster response trailer enclosure - 7,840 7,840 - 3,760 7,760 7,759 1 23,350 39,880 39,869 11 260,640 313,260 284,374 28,886 Total Fire 4,498,580 4,830,560 4,781,827 48,733 Community Development: Salaries and benefits 1,154,760 1,166,030 1,126,201 39,829 Office expense 14,430 16,700 16,700 - Advertising 4,240 3,580 3,573 7 Computer maintenance and replacement 90,350 83,790 83,790 - Insurance 17,800 14,640 14,634 6 Occupancy 44,310 44,310 44,310 - Communications 1,910 2,760 2,754 6 Operating supplies 1,060 1,720 1,715 5 Vehicle operations 15,570 15,570 15,303 267 Contract services 94,320 173,140 173,133 7 Professional development 12,460 18,820 18,819 1 Recruitment 1,060 1,060 884 176 Contingency 5,000 2,170 - 2,170 Special purchases, projects & studies: Eagle Ranch EIR - 17,480 16,320 1,160 Eagle Ranch Specific Plan - 3,160 3,153 7 Total Community Development 1,457,270 1,564,930 1,521,289 43,641 Budget Variance with Final Budget Positive (Negative) Cash contribution to Vehicle & Equipment Maintenance Fund for Radio Simulcast Cash contribution to Vehicle & Equipment Maintenance Fund for Fire Engines 88 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 157 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Central Reception: Salaries and benefits 44,910$ 47,760$ 39,665$ 8,095$ Office expense 1,160 1,160 1,043 117 Computer maintenance and replacement 6,780 6,780 6,780 - Insurance 1,490 1,490 1,225 265 Occupancy 32,340 32,340 32,339 1 Communications 370 370 344 26 Operating supplies - - 89 (89) Vehicle & equipment operating costs 210 210 - 210 Professional development 160 160 - 160 Recruitment 110 110 - 110 Total Central Reception 87,530 90,380 81,485 8,895 Recreation: Salaries and benefits 281,200 300,860 297,854 3,006 Office expense 4,410 6,100 6,004 96 Advertising 28,300 22,650 22,635 15 Computer maintenance and replacement 13,170 13,170 13,170 - Insurance 12,730 13,150 13,140 10 Occupancy 39,730 37,740 37,435 305 Utilities 5,250 5,250 4,347 903 Communications 380 920 913 7 Operating supplies 27,850 33,730 29,563 4,167 Vehicle and equipment operating costs 1,090 1,080 1,061 19 Contract services 141,370 151,340 134,041 17,299 Professional development 1,350 4,230 4,224 6 Recruitment 500 1,180 1,176 4 Contingency 2,500 - - - Special purchases, projects & studies: Desks - 1,210 1,212 (2) Youth Scholarships - 1,390 1,382 8 Total Recreation 559,830 594,000 568,157 25,843 Budget Variance with Final Budget Positive (Negative) 89 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 158 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Community Center: Salaries and benefits 52,330$ 46,260$ 46,255$ 5$ Office expense 1,060 330 325 5 Advertising 400 - - - Computer maintenance and replacement 10,090 10,490 10,482 8 Insurance 6,420 7,490 7,490 - Occupancy 88,010 88,060 88,055 5 Utilities 45,400 46,450 46,446 4 Communications 1,990 2,130 1,553 577 Operating supplies 15,370 9,130 9,125 5 Vehicle and equipment operations 2,750 180 - 180 Contract services 18,790 12,210 11,210 1,000 Professional development 1,440 210 - 210 Recruitment 260 260 - 260 Special purchases, projects & studies: Folding chairs and tables - 330 326 4 Total Community Center 244,310 223,530 221,267 2,263 Pavilion: Salaries and benefits 129,720 143,500 143,484 16 Office expense 1,340 1,340 952 388 Advertising 5,000 3,680 3,675 5 Computer maintenance and replacement 7,790 7,790 7,790 - Insurance 4,020 4,020 3,874 146 Occupancy 35,510 35,510 35,510 - Utilities 24,730 22,070 19,339 2,731 Communications 1,230 1,310 1,306 4 Operating supplies 9,680 9,680 6,370 3,310 Vehicle and equipment operating costs 1,270 1,270 990 280 Contract services 22,740 16,220 16,218 2 Professional development 690 690 250 440 Recruitment 210 210 32 178 Total Pavilion 243,930 247,290 239,790 7,500 Budget Variance with Final Budget Positive (Negative) 90 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 159 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Zoo: Salaries and benefits 682,880$ 691,750$ 640,316$ 51,434$ Office expense 1,820 1,670 1,666 4 Advertising 1,000 270 261 9 Computer maintenance and replacement 31,660 34,980 34,975 5 Insurance 10,570 9,320 9,315 5 Occupancy 37,410 37,410 37,406 4 Utilities 41,550 48,040 48,030 10 Communications 580 990 982 8 Operating supplies 85,620 82,380 82,369 11 Vehicle and equipment operating costs 5,860 7,780 7,774 6 Contract services 58,930 58,500 58,486 14 Professional development 10,400 11,740 11,733 7 Recruitment 100 620 615 5 Gift shop retail 35,000 35,000 34,107 893 Special purchases, projects & studies: Animal acquisition - 2,180 2,180 - Zoo exhibit improvements - 7,270 7,262 8 Deferred maintenance projects - 1,290 1,286 4 Capital outlay: New Madagascar exhibit - 4,160 4,158 2 New keel billed toucan exhibit 4,290 4,290 - 4,290 New wallaby exhibit - 690 686 4 Aviary rehabilitation project - 4,760 4,752 8 Electrical upgrade project - 3,550 3,542 8 Total Zoo 1,007,670 1,048,640 991,901 56,739 Variance with Final Budget Positive (Negative) Budget 91 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 160 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Public Works Administration: Salaries and benefits 689,860$ 704,900$ 674,316$ 30,584$ Office expense 6,200 6,620 6,617 3 Advertising 300 - - - Computer maintenance and replacement 45,400 44,670 44,662 8 Insurance 11,070 9,110 9,108 2 Occupancy charges 18,160 18,160 18,160 - Communications 2,400 2,400 2,391 9 Operating supplies 13,650 15,540 15,539 1 Vehicle operations 5,800 7,070 7,061 9 Contract services 14,500 25,480 25,472 8 Professional development 4,350 5,140 5,136 4 Recruitment 1,000 280 277 3 Contingency 7,000 - - - Special purchases, projects & studies: NPDES/Water Control Basin Plan - 520 514 6 LAMP - 50,000 31,750 18,250 Five-Year Capital Improvement Plan 8,680 8,680 998 7,682 Capital outlay: 1,140 2,380 2,374 6 Total Public Works Administration 829,510 900,950 844,375 56,575 Variance with Final Budget Positive (Negative) Budget Cash contribution to Vehicle and Equipment Replacement Fund for Radio Simulcast Project 92 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 161 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Public Works Operations: Salaries and benefits 196,050$ 197,550$ 197,541$ 9$ Office expense 3,360 2,020 2,011 9 Computer maintenance and replacement 9,410 9,410 9,410 - Insurance 3,390 3,130 3,123 7 Occupancy charges 10,820 10,030 10,024 6 Utilities 8,100 8,660 8,655 5 Communications 750 1,660 1,651 9 Operating supplies 650 1,570 1,570 - Vehicle & equipment operating costs 1,640 1,500 1,496 4 Contract services - 1,800 1,800 - Professional development 1,500 2,570 2,562 8 Recruitment - 90 87 3 Capital outlay: Iron working tool - 3,350 3,342 8 Total Public Works Operations 235,670 243,340 243,272 68 Parks: Salaries and benefits 379,130 336,540 253,402 83,138 Computer maintenance and replacement 7,760 7,760 7,760 - Insurance 7,960 7,960 6,841 1,119 Occupancy 20,760 20,760 20,760 - Utilities 164,050 148,590 120,715 27,875 Communications 1,600 1,600 1,471 129 Operating supplies 39,540 39,840 39,835 5 Vehicle and equipment operations 27,470 27,470 19,308 8,162 Contract services 23,500 70,040 70,039 1 Professional development 1,200 1,200 981 219 Recruitment - 320 315 5 Special purchases, projects & studies: Blade grinder - 700 698 2 Lake boat dock repair - 3,690 3,682 8 Lake fill line protection project - 180 179 1 Backflow valve replacement - 9,870 9,870 - Total Parks 672,970 676,520 555,856 120,664 Budget Variance with Final Budget Positive (Negative) 93 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 162 of 242 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, 2017 Original Final Actual Amounts Expenditures (continued): Measure F-14 Sales Tax: Capital outlay: Pavement Maintenance Projects 231,030$ 231,030$ 216,874$ 14,156$ Pavement Rehabilitation Projects 1,404,300 1,812,700 1,569,599 243,101 16/17 Pavement Resurfacing Projects 286,530 286,530 230,337 56,193 16/17 Pavement Rehabilitation Projects 1,592,350 1,592,350 121,337 1,471,013 Total Measure F-14 Sales Tax 3,514,210 3,922,610 2,138,147 1,784,463 Non-Departmental: Special purchases, projects & studies: - 1,000,000 1,000,000 - Security camera equipment 14,070 14,070 - 14,070 Storm debris removal - - 1,200 (1,200) Total Non-Departmental 14,070 1,014,070 1,001,200 12,870 Total expenditures 23,124,180 25,223,270 22,668,788 2,554,482 Excess of revenues over (under) expenditures (2,649,150) (4,221,100) (570,902) 3,650,198 Other Financing Sources (Uses): 494,190 494,190 494,190 - (241,260) (241,260) (168,000) 73,260 - - - - (1,400) (1,400) (1,400) - Total other financing sources (uses)251,530 251,530 324,790 73,260 Excess of revenues and other sources over (under) expenditures and other uses (2,397,620)$ (3,969,570)$ (246,112) 3,723,458$ Fund balance, June 30, 2016 11,638,707 Fund balance, June 30, 2017 11,392,595$ - Variance with Final Budget Positive (Negative) Transfer from Community Facilities District Fund Cash contribution to Building Maintenance and Replacement Fund for Deferred Maintenance Transfer to De Anza Landscape & Lighting District for open space maintenance Budget Transfer to Gas Tax Fund for streets maintenanceTransfer to Building Maintenance and Replacement Fund for Deferred Contributions District for open space maintenance 94 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 163 of 242 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 -$ -$ 89,232$ 89,232$ Affordable Housing Program Loans - - 20,235 20,235 Interest income 3,500 3,500 766 (2,734) Gain / (Loss) on Inclusionary Housing Program Loans - - (84,200) (84,200) Total revenues 3,500 3,500 26,033 22,533 Expenditures: Contract services 5,000 2,220 500 1,720 Administrative charges 46,510 46,510 46,510 - Special projects: Closing Cost Program Expense - 2,780 2,771 9 Total expenditures 51,510 51,510 49,781 1,729 Net change in fund balance (48,010)$ (48,010)$ (23,748) 24,262$ Fund balance, June 30, 2016 5,711,968 Fund balance, June 30, 2017 5,688,220$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2017 95 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 164 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 502,010$ 502,010$ 296,570$ (205,440)$ Mitigation Fees- Del Rio Interchange 1,619,420 1,619,420 - (1,619,420) Interest income 34,150 34,150 4,885 (29,265) Total revenues 2,155,580 2,155,580 301,455 (1,854,125) Expenditures: Capital outlay: 101 @ Del Rio Interchange Project 750,630 750,630 125,895 624,735 Total expenditures 750,630 750,630 125,895 624,735 Net change in fund balance 1,404,950$ 1,404,950$ 175,560 (1,229,390)$ Fund balance, June 30, 2016 1,896,658 Fund balance, June 30, 2017 2,072,218$ Budget Variance with Final Budget Positive (Negative) 96 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 165 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 11,180$ 11,180$ 4,610$ (6,570)$ Total revenues 11,180 11,180 4,610 (6,570) Net change in fund balance 11,180$ 11,180$ 4,610 (6,570)$ Fund balance, June 30, 2016 (844,863) Fund balance, June 30, 2017 (840,253)$ Budget Variance with Final Budget Positive (Negative) 97 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 166 of 242 CITY OF ATASCADERO SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS For the Fiscal Year Ended June 30, 2017 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 6/30/2015 -$ 143,019$ 143,019$ 0.0%921,329$ 15.5% 6/30/2016 -$ 152,794$ 152,794$ 0.0%1,104,621$ 13.8% 6/30/2017 -$ 186,100$ 186,100$ 0.0%1,114,922$ 16.7% 98 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 167 of 242 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, 2017 6/30/2017 6/30/2016 6/30/2015 Measurement Date 6/30/2016 6/30/2015 6/30/2014 City's proportion of the net pension liability 0.272255%0.278260%0.260250% City's proportionate share of the net pension liability 23,558,492$ 19,099,492$ 16,193,941$ City's covered - employee payroll **8,658,607$ 8,348,164$ 8,181,272$ 272.08%228.79%197.94% 33,358,627,624$ 31,771,217,402$ 30,829,966,631$ 24,705,532,291$ 24,907,305,871$ 24,607,502,515$ Plan's fiduciary net position as a percentage of the plan's total pension liability 74.06%78.40%79.82% * Fiscal year 2015 was the first year of implementation, therefore, only three years are shown ** For the year ending on the measurement date Fiscal Year End City's proportionate share of the net pension liability as percentage of covered- employee payroll Plan's total pension liability Plan's fiduciary net position 99 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 168 of 242 CITY OF ATASCADERO SCHEDULE OF PENSION CONTRIBUTIONS Cost-Sharing Multiple-Employer Defined Pension Plan - Last 10 Years* As of June 30, 2017 Contributions for the fiscal year ending:6/30/2017 6/30/2016 6/30/2015 Contractually required contribution (actuarially determined)2,489,485$ 2,255,947$ 2,227,093$ Contributions in relation to the actuarially determined contributions (2,489,485) (2,255,947) (2,227,093) Contribution deficiency (excess)-$ -$ -$ Covered-employee payroll **10,102,742$ 8,658,607$ 8,348,164$ Contributions as a percentage of covered-employee payroll 24.64%26.05%26.68% Notes to Schedule Valuation Date 06/30/16 06/30/15 06/30/14 Methods and assumptions used to determine contribution rates: Actuarial cost method Asset valuation method Amortization method Discount rate 7.65%7.65%7.50% Price inflation Salary increases Investment rate of return 7.0% Net of Pension Plan Investment and Administrative Expenses; includes inflation 7.50% Net of Pension Plan Investment and Administrative Expenses; includes inflation 7.50% Net of Pension Plan Investment and Administrative Expenses; includes inflation Mortality Post retirement benefit * Fiscal year 2015 was the first year of implementation, therefore, only three years are shown ** For the fiscal year ending on the date shown Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter Entry age 5-year smoothed market Level percentage of payroll, closed 2.75% Varies by entry age and service Derived using CalPERS' Membership data for all funds 100 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 169 of 242 OTHER SUPPLEMENTARY INFORMATION ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 170 of 242 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, 2017 Original Final Actual Amounts Revenues: Interest income- cash & investments 5,000$ 5,000$ 5,155$ 155$ 747,320 747,320 733,117 (14,203) 2,240 2,240 1,975 (265) Total revenues 754,560 754,560 740,247 (14,313) Expenditures: Contract Services 2,240 2,240 1,975 265 Principal 225,000 225,000 225,000 - Interest 747,320 747,320 747,313 7 Total expenditures 974,560 974,560 974,288 272 Net change in fund balance (220,000)$ (220,000)$ (234,041) (14,041)$ Fund balance, June 30, 2016 17,004,836 Fund balance, June 30, 2017 16,770,795$ 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 101 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 171 of 242 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. 102 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 172 of 242 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. 103 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 173 of 242 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 Colony Park Community Center.Future additional residential units will increase the City's population,placing ever greater demands on existing community use facilities,and new or expanded community center space will be necessary to extend the current level of service to new residents.Because the need for these new facilities is directly related to new construction,a Public Facilities Fee is charged on all new residential development.These fees are deposited into this fund and then used for expanded/new community use facilities as listed in the Atascadero Master Facilities Plan, updated February 2006. Library Expansion Facilities Fees Fund The County Public Library System currently owns and maintains a library facility within the City limits.While the City is not the library service provider,the City's residents and businesses have an interest in maintaining the library service levels.Additional development within the City will increase the demand for a larger sized library and for more volumes within the library.Because the need for expanded library services is directly related to new construction,a Library Facilities Fee is charged on all new development.These fees are deposited into this fund and then are used for the expansion of the amount of library facility space and the expansion of the library collection as listed in the Atascadero Master Facilities Plan,updated February 2006.In December 2010,the County purchased a new library facility at 6555 Capistrano Avenue.The City contributed a total of $315,180 toward the library expansion during the period spanning December 2010 through June 2014. This amount was a combination of impact fees and other funds that had been set aside for library expansion. Community Facilities District Fund This fund is used to account for fees assessed in the Community Facilities District.This district was established in 2005 in order to provide funding for expansion of police,fire,and parks services as the City's population increases.Developments that must obtain Planning Commission approval are subject to annexation into the city-wide district. Apple Valley Street & Storm Drain Assessment District Fund This fund is used to account for fees assessed in a development known as The Colony at Apple Valley.This assessment district was established in 2005 in order to maintain the street and storm drain related improvements in the development. Apple Valley Landscape & Lighting Assessment District Fund This fund is used to account for fees assessed in a development known as The Colony at Apple Valley.This assessment district was established in 2005 in order to maintain the landscape & 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. 104 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 174 of 242 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. Youth Center Construction Fund This fund accounts for funds received for and expended on the construction of the Colony Park Community Center. 105 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 175 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) DEBT SERVICE FUND The City has established the debt service fund to account for the payment and accumulation of resources related to long-term debt principal and interest for the following debt issues: 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 $180,000 in aggregate principal bonds on September 2, 1995. 106 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 176 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET June 30, 2017 Supplemental Law Enforcement Services Fund Atascadero Tourism Business Improvement District Fund Community Development Block Grant Fund Tree Plant Fund Gas Tax Fund Local Transportation Fund ASSETS Cash and investments 74,061$ 296,913$ -$ 133,578$ 68,437$ 3,730,956$ Receivables: Federal distributions due - - 106,311 - - 214,105 Due from State of California - - - - - - Due from County of San Luis Obispo - - - - - - Accrued interest 140 540 - 238 97 6,540 Other receivables - 77,108 362 - - - Due from other funds - - - - - - Prepaid items - - - - 730 - Notes receivable - - - 120,000 - - Total assets 74,201$ 374,561$ 106,673$ 253,816$ 69,264$ 3,951,601$ LIABILITIES AND FUND BALANCES Accounts payable 5,614$ 9,120$ 360$ 6,413$ 56,762$ 86,754$ Accrued salaries and benefits 243 - - - 11,437 - Due to other funds - - 106,313 - - - Unearned revenue 67,418 - - - - - Total liabilities 73,275 9,120 106,673 6,413 68,199 86,754 Fund Balances: Nonspendable - - - - 730 - Restricted 926 365,441 - 247,403 335 3,864,847 Assigned for road projects - - - - - - Total fund balances 926 365,441 - 247,403 1,065 3,864,847 Total liabilities and fund balances 74,201$ 374,561$ 106,673$ 253,816$ 69,264$ 3,951,601$ Special Revenue Funds 107 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 177 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2017 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 71,688$ 74,158$ 573,254$ 143,189$ 205,675$ 476,442$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo 22 - - - - - Accrued interest 127 126 1,008 250 284 835 Other receivables - 2,022 843 36,238 1,822 12,809 Due from other funds - - - - 840,984 - Prepaid items - - - - - - Notes receivable - - - - - - Total assets 71,837$ 76,306$ 575,105$ 179,677$ 1,048,765$ 490,086$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ -$ -$ 8,646$ 23,831$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - - - - - - Total liabilities - - - - 8,646 23,831 Fund Balances: Nonspendable - - - - - - Restricted 71,837 76,306 575,105 179,677 1,040,119 466,255 Assigned for road projects - - - - - - Total fund balances 71,837 76,306 575,105 179,677 1,040,119 466,255 Total liabilities and fund balances 71,837$ 76,306$ 575,105$ 179,677$ 1,048,765$ 490,086$ 108 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 178 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2017 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 1,652,219$ 627,907$ 135,573$ 256,488$ 381,787$ 201,550$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo - - - 2,275 402 1,002 Accrued interest 2,895 1,105 237 378 670 345 Other receivables - - 1,013 - - - Due from other funds - - - - - - Prepaid items - - - - - - Notes receivable - - - - - - Total assets 1,655,114$ 629,012$ 136,823$ 259,141$ 382,859$ 202,897$ LIABILITIES AND FUND BALANCES Accounts payable -$ 4,320$ -$ -$ 247$ 6,522$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - - - - - 75,000 Total liabilities - 4,320 - - 247 81,522 Fund Balances: Nonspendable - - - - - - Restricted 1,655,114 624,692 136,823 259,141 382,612 121,375 Assigned for road projects - - - - - - Total fund balances 1,655,114 624,692 136,823 259,141 382,612 121,375 Total liabilities and fund balances 1,655,114$ 629,012$ 136,823$ 259,141$ 382,859$ 202,897$ Special Revenue Funds 109 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 179 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2017 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 283,072$ 183,496$ 383,253$ 116,451$ 23,840$ 2,106,801$ Receivables: Federal distributions due - - - - 474,409 - Due from State of California - - - - 1,730 - Due from County of San Luis Obispo 109 505 361 158 105,061 - Accrued interest 499 310 670 205 (296) 4,002 Other receivables - - - - - - Due from other funds - - - - - - Prepaid items - - - - - - Notes receivable - - - - - - Total assets 283,680$ 184,311$ 384,284$ 116,814$ 604,744$ 2,110,803$ LIABILITIES AND FUND BALANCES Accounts payable 247$ 11,341$ 247$ 705$ 23,666$ 226,641$ Accrued salaries and benefits - - - - - - Due to other funds - - - - 174,665 - Unearned revenue - - - - - - Total liabilities 247 11,341 247 705 198,331 226,641 Fund Balances: Nonspendable - - - - - - Restricted 283,433 172,970 384,037 116,109 122,484 1,884,162 Assigned for road projects - - - - 283,929 - Total fund balances 283,433 172,970 384,037 116,109 406,413 1,884,162 Total liabilities and fund balances 283,680$ 184,311$ 384,284$ 116,814$ 604,744$ 2,110,803$ Special Revenue Funds Capital Projects Funds 110 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 180 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2017 Capital Projects Funds Debt Service Fund Youth Center Construction Fund 1992 Street Assessment Improvement Fund TOTALS ASSETS Cash and investments -$ 172,255$ 12,373,043$ Receivables: Federal distributions due 304,316 - 1,099,141 Due from State of California 101,439 - 103,169 Due from County of San Luis Obispo - - 109,895 Accrued interest - 308 21,513 Other receivables - - 132,217 Due from other funds - - 840,984 Prepaid items - - 730 Notes receivable - - 120,000 Total assets 405,755$ 172,563$ 14,800,692$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ 471,436$ Accrued salaries and benefits - - 11,680 Due to other funds 397,879 - 678,857 Unearned revenue 5,177 - 147,595 Total liabilities 403,056 - 1,309,568 Fund Balances: Nonspendable - - 730 Restricted 2,699 172,563 13,206,465 Assigned for road projects - - 283,929 Total fund balances 2,699 172,563 13,491,124 Total liabilities and fund balances 405,755$ 172,563$ 14,800,692$ 111 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 181 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For Fiscal Year Ended June 30, 2017 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 -$ 267,507$ -$ -$ -$ -$ Licenses and permits - - - 8,992 - - Intergovernmental revenues 125,976 - 109,284 - 615,182 962,506 Use of money and property (44) 724 - - (1,104) 5,962 Other revenues - - - - - - Total revenues 125,932 268,231 109,284 8,992 614,078 968,468 Expenditures: Salaries and benefits 33,749 - - - 380,694 - Supplies and services 51,188 232,639 6,866 26,797 536,873 - Special projects and studies 5,250 - 8,068 - - - Capital outlay 36,566 - 94,350 - - 398,425 Total expenditures 126,753 232,639 109,284 26,797 917,567 398,425 Excess of revenues over (under) expenditures (821) 35,592 - (17,805) (303,489) 570,043 Other Financing Sources (Uses): Transfers in - - - - 168,000 - Transfers out - - - - - (23,840) Total other financing sources (uses)- - - - 168,000 (23,840) Net change in fund balances (821) 35,592 - (17,805) (135,489) 546,203 Fund balance, June 30, 2016 1,747 329,849 - 265,208 136,554 3,318,644 Fund balance, June 30, 2017 926$ 365,441$ -$ 247,403$ 1,065$ 3,864,847$ Special Revenue Funds 112 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 182 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2017 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 - 53,286 50,823 33,890 111,875 69,611 Intergovernmental revenues - - - - - - Use of money and property 95 27 960 276 11,252 (868) Other revenues - - - - - 58,000 Total revenues 2,255 53,313 51,783 34,166 123,127 126,743 Expenditures: Salaries and benefits - - - - - - Supplies and services - - - - - - Special projects and studies - - - - 29,497 - Capital outlay - - - - - 509,142 Total expenditures - - - - 29,497 509,142 Excess of revenues over (under) expenditures 2,255 53,313 51,783 34,166 93,630 (382,399) Other Financing Sources (Uses): Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 2,255 53,313 51,783 34,166 93,630 (382,399) Fund balance, June 30, 2016 69,582 22,993 523,322 145,511 946,489 848,654 Fund balance, June 30, 2017 71,837$ 76,306$ 575,105$ 179,677$ 1,040,119$ 466,255$ Special Revenue Funds 113 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 183 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2017 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 -$ -$ -$ 530,871$ 28,000$ 70,000$ Licenses and permits 196,777 52,797 24,727 - - - Intergovernmental revenues - - - - - - Use of money and property 2,940 998 288 (606) 516 149 Other revenues - - - - - - Total revenues 199,717 53,795 25,015 530,265 28,516 70,149 Expenditures: Salaries and benefits - - - - - - Supplies and services - - - 5,059 6,135 54,836 Special projects and studies - - - - - - Capital outlay 4,165 16,287 - - - - Total expenditures 4,165 16,287 - 5,059 6,135 54,836 Excess of revenues over (under) expenditures 195,552 37,508 25,015 525,206 22,381 15,313 Other Financing Sources (Uses): Transfers in - - - - - - Transfers out - - - (494,190) - - Total other financing sources (uses)- - - (494,190) - - Net change in fund balances 195,552 37,508 25,015 31,016 22,381 15,313 Fund balance, June 30, 2016 1,459,562 587,184 111,808 228,125 360,231 106,062 Fund balance, June 30, 2017 1,655,114$ 624,692$ 136,823$ 259,141$ 382,612$ 121,375$ Special Revenue Funds 114 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 184 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2017 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$ 57,938$ 40,090$ 15,874$ -$ -$ Licenses and permits - - - - - - Intergovernmental revenues - - - - 475,407 - Use of money and property 363 97 551 107 (3,063) 1,731 Other revenues - - - - - - Total revenues 12,414 58,035 40,641 15,981 472,344 1,731 Expenditures: Salaries and benefits - - - - - - Supplies and services 7,415 65,183 5,825 21,243 - - Special projects and studies - - - - 15,147 - Capital outlay - - - - 499,190 720,828 Total expenditures 7,415 65,183 5,825 21,243 514,337 720,828 Excess of revenues over (under) expenditures 4,999 (7,148) 34,816 (5,262) (41,993) (719,097) Other Financing Sources (Uses): Transfers in - - - 1,400 23,840 - Transfers out - - - - - - Total other financing sources (uses)- - - 1,400 23,840 - Net change in fund balances 4,999 (7,148) 34,816 (3,862) (18,153) (719,097) Fund balance, June 30, 2016 278,434 180,118 349,221 119,971 424,566 2,603,259 Fund balance, June 30, 2017 283,433$ 172,970$ 384,037$ 116,109$ 406,413$ 1,884,162$ Special Revenue Funds Capital Projects Funds 115 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 185 of 242 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2017 Capital Projects Funds Debt Service Fund Youth Center Construction Fund 1992 Street Assessment Improvement Fund TOTALS Revenues: Taxes and assessments -$ -$ 1,024,491$ Licenses and permits - - 602,778 Intergovernmental revenues - - 2,288,355 Use of money and property - 216 21,567 Other revenues - - 58,000 Total revenues - 216 3,995,191 Expenditures: Salaries and benefits - - 414,443 Supplies and services - - 1,020,059 Special projects and studies - 2,929 60,891 Capital outlay - - 2,278,953 Total expenditures - 2,929 3,774,346 Excess of revenues over (under) expenditures - (2,713) 220,845 Other Financing Sources (Uses): Transfers in - - 193,240 Transfers out - - (518,030) Total other financing sources (uses)- - (324,790) Net change in fund balances - (2,713) (103,945) Fund balance, June 30, 2016 2,699 175,276 13,595,069 Fund balance, June 30, 2017 2,699$ 172,563$ 13,491,124$ 116 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 186 of 242 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, 2017 Original Final Actual Amounts Revenues: S.L.E.S.F. Grant 53,300$ 193,400$ 125,976$ (67,424)$ Interest income - - (44) (44) Total revenues 53,300 193,400 125,932 (67,468) Expenditures: Employee services 20,870 57,050 33,749 23,301 Computer maintenance & replacement 10 - - - Communications 4,760 7,330 2,441 4,889 Operating supplies 11,510 60,150 40,368 19,782 Contract services 20 8,380 8,379 1 Special projects and purchases: Personal Protective Vests - 5,250 5,250 - Radio Replacement 2,270 - - - Capital outlay: Tablet computers 10 - - - 13,850 55,240 36,566 18,674 Total expenditures 53,300 193,400 126,753 66,647 Net change in fund balance -$ -$ (821) (821)$ Fund balance, June 30, 2016 1,747 Fund balance, June 30, 2017 926$ Cash Contribution to Vehicle and Equipment Replacement Fund for Vehicle Purchase Budget Variance with Final Budget Positive (Negative) 117 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 187 of 242 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, 2017 Original Final Actual Amounts Revenues: Tourism assessments 186,690$ 186,690$ 267,507$ 80,817$ Interest income 2,110 2,110 724 (1,386) Total revenues 188,800 188,800 268,231 79,431 Expenditures: Office expense 2,200 2,200 - 2,200 Advertising 90,000 91,010 91,005 5 Operating Supplies - 120 120 - Contract services 155,000 152,630 138,414 14,216 Professional Development - 430 425 5 Administration 1,870 2,680 2,675 5 Total expenditures 249,070 249,070 232,639 16,431 Net change in fund balance (60,270)$ (60,270)$ 35,592 95,862$ Fund balance, June 30, 2016 329,849 Fund balance, June 30, 2017 365,441$ Budget Variance with Final Budget Positive (Negative) 118 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 188 of 242 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, 2017 Original Final Actual Amounts Revenues: Community Development Block Grant 313,970$ 313,970$ 109,284$ (204,686)$ Total revenues 313,970 313,970 109,284 (204,686) Expenditures: Administration: CDBG general administration 26,270 22,090 6,866 15,224 Special projects and studies: Youth Scholarships 8,070 8,070 8,068 2 Capital outlay: Barrier Removal- Atascadero Mall/Ardilla 104,890 159,640 13,159 146,481 South El Camino Real Barrier Removal 174,740 124,170 81,191 42,979 Total expenditures 313,970 313,970 109,284 204,686 Net change in fund balance -$ -$ - -$ Fund balance, June 30, 2016 - Fund balance, June 30, 2017 -$ Budget Variance with Final Budget Positive (Negative) 119 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 189 of 242 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, 2017 Original Final Actual Amounts Revenues: Permits and fees 54,170$ 54,170$ 8,992$ (45,178)$ Interest income 1,790 1,790 - (1,790) Total revenues 55,960 55,960 8,992 (46,968) Expenditures: Office expense 630 630 - 630 Utilities 400 400 - 400 Operating Supplies 500 500 - 500 Contract services 50,000 50,000 17,397 32,603 Administrative charges 9,400 9,400 9,400 - Special projects Native Tree Replanting 41,600 41,600 - 41,600 Total expenditures 102,530 102,530 26,797 75,733 Net change in fund balance (46,570)$ (46,570)$ (17,805) 28,765$ Fund balance, June 30, 2016 265,208 Fund balance, June 30, 2017 247,403$ Budget Variance with Final Budget Positive (Negative) 120 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 190 of 242 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, 2017 Original Final Actual Amounts Revenues: Section 2103 highway users tax 103,910$ 103,910$ 82,418$ (21,492)$ Section 2105 highway users tax 163,830 163,830 173,507 9,677 Section 2106 highway users tax 89,260 109,080 133,279 24,199 Section 2107 highway users tax 223,980 223,980 219,978 (4,002) Section 2107.5 highway users tax 6,000 6,000 6,000 - Interest income (950) (950) (1,104) (154) Total revenues 586,030 605,850 614,078 8,228 Expenditures: Salaries and benefits 379,030 380,710 380,694 16 Computer maintenance & replacement 4,350 4,350 4,350 - Insurance 11,230 9,520 9,512 8 Utilities 69,000 112,420 112,418 2 Communications 1,750 1,640 1,637 3 Operating supplies and equipment 40,000 49,090 49,090 - Vehicle and equipment operations 54,210 49,030 49,030 - Contract services 129,150 103,120 103,112 8 Professional development 3,190 1,850 1,844 6 Department Service Allocation 116,890 116,890 116,890 - Administrative charges 88,990 88,990 88,990 - Special projects: Traffic Signal Controller 4,000 4,000 - 4,000 Total expenditures 901,790 921,610 917,567 4,043 Excess of revenues over (under) expenditures (315,760) (315,760) (303,489) 12,271 Other Financing Sources (Uses): 241,260 241,260 168,000 (73,260) Total other financing sources (uses)241,260 241,260 168,000 (73,260) Net change in fund balance (74,500)$ (74,500)$ (135,489) (60,989)$ Fund balance, June 30, 2016 136,554 Fund balance, June 30, 2017 1,065$ Transfer from General Fund for street maintenance Budget Variance with Final Budget Positive (Negative) 121 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 191 of 242 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, 2017 Original Final Actual Amounts Revenues: Local Transportation Tax- Article 3 Bike Paths 22,060$ 22,060$ 22,289$ 229$ Local Transportation Tax- Article 8 Streets 457,610 457,610 593,893 136,283 HBRR Grant - Via Avenue Bridge 335,320 335,320 166,467 (168,853) HBRR Grant - Santa Lucia Bridge 380,370 380,370 179,857 (200,513) Interest income 20,770 20,770 5,962 (14,808) Total revenues 1,216,130 1,216,130 968,468 (247,662) Expenditures: Special projects: Minor Bridge Repair 8,070 8,070 - 8,070 Roadway Traffic Safety Improvements 50,000 - - - Capital outlay: East Front Overlay 241,910 241,910 1,104 240,806 Santa Barbara Road Overlay Project 116,490 290,760 13,932 276,828 San Anselmo CIR Rehabilitation Project 439,370 439,370 7,684 431,686 San Lucas Road Landslide Repair 89,630 - - - El Camino Real CIR Rehabilitation Project 700,360 700,360 348 700,012 Viejo Camino Road Rehabilitation Project 78,000 78,000 - 78,000 Santa Lucia Road Rehabilitation Project 292,500 292,500 1,200 291,300 Santa Lucia Road and Culvert Repairs - - 6,265 (6,265) Via Avenue Bridge Project 378,900 407,460 188,035 219,425 Santa Lucia Bridge Project 380,370 380,370 179,857 200,513 Total expenditures 2,775,600 2,838,800 398,425 2,440,375 Excess of revenues over (under) expenditures (1,559,470) (1,622,670) 570,043 2,192,713 Other Financing Sources (Uses): - (23,840) (23,840) - Total other financing sources (uses)- (23,840) (23,840) - Net change in fund balance (1,559,470)$ (1,646,510)$ 546,203 2,192,713$ Fund balance, June 30, 2016 3,318,644 Fund balance, June 30, 2017 3,864,847$ Budget Variance with Final Budget Positive (Negative) Transfer to Capital Projects Fund for the Highway 41 Multipurpose Pathway Project 122 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 192 of 242 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, 2017 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 200 200 95 (105) Total revenues 2,340 2,340 2,255 (85) 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 (47,660)$ (47,660)$ 2,255 49,915$ Fund balance, June 30, 2016 69,582 Fund balance, June 30, 2017 71,837$ Variance with Final Budget Positive (Negative) Budget 123 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 193 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 66,780$ 66,780$ 53,286$ (13,494)$ Interest income (expense)(70) (70) 27 97 Total revenues 66,710 66,710 53,313 (13,397) Net change in fund balance 66,710$ 66,710$ 53,313 (13,397)$ Fund balance, June 30, 2016 22,993 Fund balance, June 30, 2017 76,306$ Variance with Final Budget Positive (Negative) Budget 124 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 194 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 60,440$ 60,440$ 50,823$ (9,617)$ Interest income 3,880 3,880 960 (2,920) Total revenues 64,320 64,320 51,783 (12,537) Expenditures: Special projects: Culvert Drainline Project 16,740 16,740 - 16,740 Capital projects: El Camino Real Culvert Relining 150,000 150,000 - 150,000 Total expenditures 166,740 166,740 - 166,740 Net change in fund balance (102,420)$ (102,420)$ 51,783 154,203$ Fund balance, June 30, 2016 523,322 Fund balance, June 30, 2017 575,105$ Budget Variance with Final Budget Positive (Negative) 125 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 195 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 44,900$ 44,900$ 33,890$ (11,010)$ Interest income 1,020 1,020 276 (744) Total revenues 45,920 45,920 34,166 (11,754) Net change in fund balance 45,920$ 45,920$ 34,166 (11,754)$ Fund balance, June 30, 2016 145,511 Fund balance, June 30, 2017 179,677$ Budget Variance with Final Budget Positive (Negative) 126 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 196 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 70,860$ 72,180$ 111,875$ 39,695$ Rental income 10,800 10,800 10,800 - Interest income 1,260 1,260 452 (808) Total revenues 82,920 84,240 123,127 38,887 Expenditures: Special projects and studies: Personal Protective Equipment 2,150 3,470 3,465 5 Station Needs Assessment 32,000 32,000 26,032 5,968 Total expenditures 34,150 35,470 29,497 5,973 Net change in fund balance 48,770$ 48,770$ 93,630 44,860$ Fund balance, June 30, 2016 946,489 Fund balance, June 30, 2017 1,040,119$ Variance with Final Budget Positive (Negative) Budget 127 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 197 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 103,060$ 103,060$ 69,611$ (33,449)$ Donation for Three Bridges Trailhead 58,000 58,000 58,000 - Interest income 5,800 5,800 (868) (6,668) Total revenues 166,860 166,860 126,743 (40,117) Expenditures: Capital Projects ALPS Three Bridges Trailhead and Parking Lot 528,890 528,890 509,142 19,748 Total expenditures 528,890 528,890 509,142 19,748 Net change in fund balance (362,030)$ (362,030)$ (382,399) (20,369)$ Fund balance, June 30, 2016 848,654 Fund balance, June 30, 2017 466,255$ Budget Variance with Final Budget Positive (Negative) 128 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 198 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 285,510$ 285,510$ 196,777$ (88,733)$ Interest income 9,430 9,430 2,940 (6,490) Total revenues 294,940 294,940 199,717 (95,223) Expenditures: Capital Projects Atascadero Lake Pipeline Repair 250,000 250,000 4,165 245,835 Total expenditures 250,000 250,000 4,165 245,835 Excess of revenues over (under) expenditures 44,940 44,940 195,552 150,612 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 (415,060)$ (415,060)$ 195,552 610,612$ Fund balance, June 30, 2016 1,459,562 Fund balance, June 30, 2017 1,655,114$ Budget Variance with Final Budget Positive (Negative) Transfer to 2010 Bond Proceeds Master Agreement Fund for Centennial Bridge & Plaza Project 129 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 199 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 64,810$ 64,810$ 52,797$ (12,013)$ Interest income 3,880 3,880 998 (2,882) Total revenues 68,690 68,690 53,795 (14,895) Expenditures: Capital projects: Zoo Garden Event Center 318,070 568,070 16,287 551,783 Total expenditures 318,070 568,070 16,287 551,783 Net change in fund balance (249,380)$ (499,380)$ 37,508 536,888$ Fund balance, June 30, 2016 587,184 Fund balance, June 30, 2017 624,692$ Variance with Final Budget Positive (Negative) Budget 130 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 200 of 242 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, 2017 Original Final Actual Amounts Revenues: Impact fees 34,870$ 34,870$ 24,727$ (10,143)$ Interest income 750 750 288 (462) Total revenues 35,620 35,620 25,015 (10,605) 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 (24,380)$ (24,380)$ 25,015 49,395$ Fund balance, June 30, 2016 111,808 Fund balance, June 30, 2017 136,823$ Budget Variance with Final Budget Positive (Negative) 131 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 201 of 242 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 466,120$ 466,120$ 530,871$ 64,751$ Interest income 2,160 2,160 (606) (2,766) Total revenues 468,280 468,280 530,265 61,985 Expenditures: Contract services 5,500 5,500 5,059 441 Total expenditures 5,500 5,500 5,059 441 Excess of revenues over (under) expenditures 462,780 462,780 525,206 62,426 Other Financing Sources (Uses): (494,190) (494,190) (494,190) - Total other financing sources (uses)(494,190) (494,190) (494,190) - Net change in fund balance (31,410)$ (31,410)$ 31,016 62,426$ Fund balance, June 30, 2016 228,125 Fund balance, June 30, 2017 259,141$ Transfer to the General Fund for police, fire and parks services For the Fiscal Year Ended June 30, 2017 Budget Variance with Final Budget Positive (Negative) 132 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 202 of 242 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$ 28,000$ (7,000)$ Interest income 3,680 3,680 516 (3,164) Total revenues 38,680 38,680 28,516 (10,164) Expenditures: Advertising 800 800 247 553 Contract services 5,890 4,320 2,920 1,400 Administration 1,400 2,970 2,968 2 Total expenditures 8,090 8,090 6,135 1,955 Net change in fund balance 30,590$ 30,590$ 22,381 (8,209)$ Fund balance, June 30, 2016 360,231 Fund balance, June 30, 2017 382,612$ For the Fiscal Year Ended June 30, 2017 Variance with Final Budget Positive (Negative) Budget 133 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 203 of 242 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 70,000$ 70,000$ 70,000$ -$ Interest income 610 610 149 (461) Total revenues 70,610 70,610 70,149 (461) Expenditures: Advertising 700 700 139 561 Utilities 16,030 16,030 7,510 8,520 Operating supplies 1,200 1,200 - 1,200 Contract services 57,300 56,720 44,467 12,253 Administration 2,140 2,720 2,720 - Total expenditures 77,370 77,370 54,836 22,534 Net change in fund balance (6,760)$ (6,760)$ 15,313 22,073$ Fund balance, June 30, 2016 106,062 Fund balance, June 30, 2017 121,375$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2017 134 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 204 of 242 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 34,760$ 34,760$ 12,051$ (22,709)$ Interest income 2,530 2,530 363 (2,167) Total revenues 37,290 37,290 12,414 (24,876) Expenditures: Advertising 800 800 247 553 Contract services 30,030 27,020 2,920 24,100 Administration 1,240 4,250 4,248 2 Total expenditures 32,070 32,070 7,415 24,655 Net change in fund balance 5,220$ 5,220$ 4,999 (221)$ Fund balance, June 30, 2016 278,434 Fund balance, June 30, 2017 283,433$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2017 135 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 205 of 242 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 69,530$ 69,530$ 57,938$ (11,592)$ Interest income 1,170 1,170 97 (1,073) Total revenues 70,700 70,700 58,035 (12,665) Expenditures: Advertising 700 700 139 561 Utilities 5,160 5,160 4,277 883 Operating supplies 6,800 6,800 - 6,800 Contract services 64,890 60,730 55,331 5,399 Administration 1,280 5,440 5,436 4 Special projects: Planting and landscape project 15,000 15,000 - 15,000 Total expenditures 93,830 93,830 65,183 28,647 Net change in fund balance (23,130)$ (23,130)$ (7,148) 15,982$ Fund balance, June 30, 2016 180,118 Fund balance, June 30, 2017 172,970$ Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2017 Budget 136 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 206 of 242 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 3,130 3,130 551 (2,579) Total revenues 43,220 43,220 40,641 (2,579) Expenditures: Advertising 600 600 247 353 Contract services 14,160 13,100 2,920 10,180 Administration 1,600 2,660 2,658 2 Special projects: Minor Road Repair Projects 15,000 15,000 - 15,000 Slurry Seal 40,000 40,000 - 40,000 Total expenditures 71,360 71,360 5,825 65,535 Net change in fund balance (28,140)$ (28,140)$ 34,816 62,956$ Fund balance, June 30, 2016 349,221 Fund balance, June 30, 2017 384,037$ For the Fiscal Year Ended June 30, 2017 Budget Variance with Final Budget Positive (Negative) 137 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 207 of 242 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 17,780$ 17,780$ 15,874$ (1,906)$ Interest income 1,010 1,010 107 (903) Total revenues 18,790 18,790 15,981 (2,809) Expenditures: Advertising 700 700 139 561 Utilities 500 500 395 105 Operating supplies 840 840 - 840 Contract services 19,530 18,820 18,087 733 Administration 1,920 2,630 2,622 8 Special projects: Landscape Improvements 15,000 15,000 - 15,000 Total expenditures 38,490 38,490 21,243 17,247 Excess of revenues over (under) expenditures (19,700) (19,700) (5,262) 14,438 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 (18,300)$ (18,300)$ (3,862) 14,438$ Fund balance, June 30, 2016 119,971 Fund balance, June 30, 2017 116,109$ Transfer from the General Fund for open space maintenance For the Fiscal Year Ended June 30, 2017 Budget Variance with Final Budget Positive (Negative) 138 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 208 of 242 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, 2017 Original Final Actual Amounts Revenues: STP - RSHA Grant - Route 41 Corridor Study 3,730$ 5,530$ 5,528$ (2)$ STIP Grant- Highway 41 Multipurpose Pathway 469,880 469,880 469,879 (1) Interest income 3,030 3,030 (3,063) (6,093) Total revenues 476,640 478,440 472,344 (6,096) Expenditures: Special projects and purchases: Annual Crack Fill Program 66,000 66,000 9,619 56,381 Route 41 Corridor Study 3,730 5,530 5,528 2 Capital outlay: Lake View Overlay Project 20,000 20,000 15,632 4,368 Highway 41 Multipurpose Pathway Project 459,720 483,560 483,558 2 Total expenditures 549,450 575,090 514,337 60,753 Excess of revenues over (under) expenditures (72,810) (96,650) (41,993) 54,657 Other Financing Sources: - 23,840 23,840 - Total other financing sources (uses)- 23,840 23,840 - Net change in fund balance (72,810)$ (72,810)$ (18,153) 54,657$ Fund balance, June 30, 2016 424,566 Fund balance, June 30, 2017 406,413$ Variance with Final Budget Positive (Negative) Budget Transfer from the Local Transportation Fund for the Highway 41 Multipurpose Pathway Project 139 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 209 of 242 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, 2017 Original Final Actual Amounts Revenues: Interest income 13,180$ 13,180$ 1,731$ (11,449)$ Total revenues 13,180 13,180 1,731 (11,449) Expenditures: Capital outlay: Centennial Bridge and Plaza Project 3,003,160 3,003,160 720,828 2,282,332 Maiden Statue Placement 50,000 50,000 - 50,000 Total expenditures 3,053,160 3,053,160 720,828 2,332,332 Excess of revenues over (under) expenditures (3,039,980) (3,039,980) (719,097) 2,320,883 Other Financing Sources: 460,000 460,000 - (460,000) Total other financing sources (uses)460,000 460,000 - (460,000) Net change in fund balance (2,579,980)$ (2,579,980)$ (719,097) 1,860,883$ Fund balance, June 30, 2016 2,603,259 Fund balance, June 30, 2017 1,884,162$ Budget Variance with Final Budget Positive (Negative) Transfer from Parkland Facilities Fees Fund for Centennial Bridge & Plaza Project 140 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 210 of 242 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, 2017 Original Final Actual Amounts Revenues: Donations 6,150$ 6,150$ -$ (6,150)$ Total revenues 6,150 6,150 - (6,150) 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 -$ -$ - -$ Fund balance, June 30, 2016 2,699 Fund balance, June 30, 2017 2,699$ Budget Variance with Final Budget Positive (Negative) 141 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 211 of 242 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, 2017 Original Final Actual Amounts Revenues: Interest income -$ -$ 216$ 216$ Total revenues - - 216 216 Expenditures: Special projects and purchases: Street repairs 171,000 171,000 2,929 168,071 Total expenditures 171,000 171,000 2,929 168,071 Net change in fund balance (171,000)$ (171,000)$ (2,713) 168,287$ Fund balance, June 30, 2016 175,276 Fund balance, June 30, 2017 172,563$ Variance with Final Budget Positive (Negative) Budget 142 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 212 of 242 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2017 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals ASSETS Current Assets: Cash and investments 1,772,243$ 2,433,590$ 1,194,070$ 5,399,903$ 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 Other receivables 167 - - 167 Accrued interest 3,174 4,296 339 7,809 Prepaid expenses 1,040 - - 1,040 Total current assets 1,778,139 2,443,020 3,735,660 7,956,819 Capital Assets: Non-depreciable: Construction in progress 403,971 - 182,777 586,748 Depreciable: Vehicles - 4,976,298 - 4,976,298 Equipment 2,438,784 3,453,159 21,024 5,912,967 Structures and improvements - - 49,224,958 49,224,958 Accumulated depreciation (2,252,542) (4,686,873) (6,474,040) (13,413,455) Net capital assets 590,213 3,742,584 42,954,719 47,287,516 Total assets 2,368,352 6,185,604 46,690,379 55,244,335 DEFERRED OUTFLOWS Deferred outflows related to pensions 103,889 - 99,390 203,279 Total deferred outflows 103,889 - 99,390 203,279 LIABILITIES Current Liabilities: Accounts payable 272,084 - 19,903 291,987 Accrued salaries and benefits 6,943 - 5,372 12,315 Unearned revenue - - 100 100 Noncurrent Liabilities: Noncurrent liabilities 415,489 - 393,745 809,234 Total liabilities 694,516 - 419,120 1,113,636 143 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 213 of 242 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION (continued) June 30, 2017 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals DEFERRED INFLOWS Deferred inflows related to pensions 32,569$ -$ 30,419$ 62,988$ Total deferred inflows 32,569 - 30,419 62,988 NET POSITION Net investment in capital assets 590,213 3,742,584 42,954,719 47,287,516 Unrestricted 1,154,943 2,443,020 3,385,511 6,983,474 Total net position 1,745,156$ 6,185,604$ 46,340,230$ 54,270,990$ 144 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 214 of 242 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2017 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating Revenues: Charges for services 770,890$ 159,220$ 483,860$ 1,413,970$ Contribution from General Fund - - 1,000,000 1,000,000 Other - 250 - 250 Total operating revenues 770,890 159,470 1,483,860 2,414,220 Operating Expenses: Salaries and benefits 408,037 - 256,469 664,506 Office expense 296 - - 296 Computer maintenance, software and replacement - - 2,710 2,710 Insurance - - 27,008 27,008 Occupancy and rental costs 31,550 - - 31,550 Utilities - - 77,202 77,202 Communications 35,057 - 2,498 37,555 Operating supplies and services 21,768 - 18,955 40,723 Vehicle and equipment operating costs 204 - 5,331 5,535 Contract services 93,425 - 34,583 128,008 Professional development 8,957 - - 8,957 Administrative charges - - 49,720 49,720 Special projects: Tables 2,270 - - 2,270 Chairs 1,604 - - 1,604 Termite Repairs-Police Station - - 5,885 5,885 Depreciation 131,383 466,773 1,072,675 1,670,831 Total operating expenses 734,551 466,773 1,553,036 2,754,360 Operating income (loss)36,339 (307,303) (69,176) (340,140) 145 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 215 of 242 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2017 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Non-Operating Revenues (Expenses): Interest income 2,119$ 2,147$ (844)$ 3,422$ Gain (loss) on sale of capital assets 40 500 - 540 Total non-operating revenues (expenses)2,159 2,647 (844) 3,962 Change in net position prior to capital contributions 38,498 (304,656) (70,020) (336,178) Capital Contributions: Cash contributions from other funds - 95,829 - 95,829 Capital contributions from other funds - 164,547 123,775 288,322 Total capital contributions - 260,376 123,775 384,151 Change in net position 38,498 (44,280) 53,755 47,973 Total net position, June 30, 2016 1,706,658 6,229,884 46,286,475 54,223,017 Total net position, June 30, 2017 1,745,156$ 6,185,604$ 46,340,230$ 54,270,990$ 146 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 216 of 242 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2017 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Cash Flows From Operating Activities: Internal activity - payments from other funds 770,890$ 159,470$ 1,483,860$ 2,414,220$ Payments to suppliers of goods and services 10,694 (128,112) (230,186) (347,604) Payments for employee services (404,333) - (251,178) (655,511) Net cash provided (used) by operating activities 377,251 31,358 1,002,496 1,411,105 Acquisition of capital assets (401,695) (204,814) (17,990) (624,499) Cash contributions received for capital purchases - 95,829 - 95,829 Proceeds from sale of capital assets 40 500 - 540 Net cash provided (used) by capital and related financing activities (401,655) (108,485) (17,990) (528,130) Cash Flows From Investing Activities: Interest income 2,089 2,308 (819) 3,578 Net cash provided (used) by investing activities 2,089 2,308 (819) 3,578 Net increase (decrease) in cash and cash equivalents (22,315) (74,819) 983,687 886,553 Cash and cash equivalents - June 30, 2016 1,794,558 2,508,409 210,383 4,513,350 Cash and cash equivalents - June 30, 2017 1,772,243$ 2,433,590$ 1,194,070$ 5,399,903$ Cash Flows From Capital and Related Financing Activities: 147 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 217 of 242 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2017 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating income (loss)36,339$ (307,303)$ (69,176)$ (340,140)$ Depreciation expense 131,383 466,773 1,072,675 1,670,831 Receivables, net (167) - - (167) Prepaid expenses 2,684 - - 2,684 Accounts payable 203,308 (128,112) (6,394) 68,802 Accrued salaries and benefits 775 - 2,769 3,544 Unearned revenue - - 100 100 Deferred outflows (24,820) - (24,671) (49,491) Deferred inflows (7,346) - (7,300) (14,646) Net pension liability 34,319 - 34,111 68,430 Compensated absences 776 - 382 1,158 Net cash provided (used) by operating activities 377,251$ 31,358$ 1,002,496$ 1,411,105$ 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: 148 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 1 Page 218 of 242 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, 2017, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated January 12, 2018. 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 12, 2018 ITEM NUMBER: C-2 DATE: 01/23/18 ATTACHMENT: 2 Page 219 of 242 ITEM NUMBER: C-3 DATE: 01/23/18 Atascadero City Council Staff Report – City Manager’s Office City of Atascadero Marketing Update 2017-2018 RECOMMENDATION: Council receive and file Marketing Update 2017-2018. DISCUSSION: The City of Atascadero’s Marketing plan is designed to support a vision and brand that has been defined as Classic Americana, simply genuine, hometown feel and a “California as it used to be” experience. The goal of the City’s Marketing plan is to promote both private and public assets, and events that appeal to local and county residents as well as encourage visitors who are already here , to “stay, spend and enjoy” our City. The plan is designed to implement these goals by keeping the City’s businesses and assets top-of-mind through an ongoing advertising campaign, growing existing events, and establishing new events that appeal to our target audience. This marketing update will capture what has been accomplished over the last six months as well as provide a year-over-year review for the 2017/16 timeframe for both the Atascadero Tourism Business Improvement District (ATBID) and the City. There will be an oral review of ATBID’s marketing efforts showcasing results over the past six months plus annual year-over-year results. The marketing plan is in full swing with new creative, as well as a new video to be shared at the meeting. The City’s marketing update will review the promotions area and event portfolio. The promotions area reviews the overall advertising campaign, highlighting what was accomplished July through December 2017, and an overview of 2017 vs. 2016. The events portion will feature events that transpired over the past six months along with the results of these events and what lies ahead for 2018. Performance metrics and budget updates will also be presented. Page 220 of 242 ITEM NUMBER: C-3 DATE: 01/23/18 The last marketing update presentation was given to Council on July 11, 2017 with a recap of events from January through June 2017, a review of the fiscal year for 2016-17 and a presentation of the new Marketing Plan 2017-18. The current update reviews where we are with the 2017-18 Marketing plan, the events that have taken place and tracking of these efforts. Promotions Recap:  Television Commercials o Targeted commercials through KSBY and Charter focus on our major events, Cruisin’ Weekend and Holiday Events. In addition, specific commercials ran on Charter with Shark Week and the Food Network to promote our new Farmers Market “Chef of the Week” summer event series.  Digital Advertising Tactics o Targeted digital banner ad impressions continued running with three different creative ads highlighting the Downtown by featuring cider tasting, Historic City Hall, and the Zoo. The ads are targeted to specific keyword searches, such as Zoo, travel, craft beers, and a variety of other keywords based on user’s search habits on our website, with the same geographic target as defined in the Search Engine Marketing (SEM) program. o SEM has been an annual commitment to keep our City populating in the top listings when folks are googling different key words. The geographic area includes SLO County and Northern Santa Barbara County. The geography changed in the 2017-18 fiscal year in an effort to avoid duplicating ATBID’s marketing efforts that focus on the outer market areas. o Local digital ads were published for Cruisin’ Weekend and Winter Wonderland events across sanluisobispo.com and the local ad networks that include our local websites like ksby.com plus in market across Food Network, CNN, major newspaper sites, etc. Farmers Market ads ran continually through the summer on A-Town Daily News/ Paso Daily News websites.  Social Media/ Websites o Posts are made on a weekly basis across the Visit Atascadero Facebook & Instagram pages, City of Atascadero Facebook pages, Instagram, Twitter, and the Charles Paddock Zoo Facebook page. Events are kept current on all social media platforms. o Websites are kept current with events and latest news information on VisitAtascadero.com and Atascadero.org. Other major websites are kept current including Visit SLOCAL, KSBY, Tribune, and New Times. o Press releases were distributed for City and Zoo events and newsworthy happenings, and were are also posted on the City’s website and social media pages. Page 221 of 242 ITEM NUMBER: C-3 DATE: 01/23/18  Billboards & Bus Signs o The billboard location on the Cuesta Grade (facing northbound traffic) started the first week of August and is in place through January 16, 2018. City Billboard panels located off Hwy 101 are also in place. o Interior bus signs inside the Hearst Castle buses are in place and promote the Zoo, Historic City Hall and the Faces of Freedom Veterans Memorial.  Newspaper Advertising o Tribune newspaper ads are being utilized to promote events through event sponsorship. All newspaper ads include additional digital display ads on www.SanLuisObispo.com. Major events are promoted as part of this sponsorship including Tamale Festival, Brew at the Zoo, Cruisin Weekend and Winter Wonderland. o Promotional print ads are published in major Tribune Magazines like Mid State Fair Guide and Vintages (ATBID budget) as well as in the SLO County Visitors Guide. o New Times newspaper advertising published to promote Ice Cream Zoofari, Zoo Boo and Holiday Magic as well as Cruisin Weekend and Winter Wonderland. o Ad placements in the Atascadero News have been event specific including Holiday events and Farmers Market via front page strip ads. 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 are a part of the ATBID budget in the new fiscal year.  Radio Advertising o American General Media radio station ads have primarily been used to highlight event sponsorship. Saturday in the Park Summer Concert Series, Cruisin Weekend and our Holiday events. Stations include KJUG, KZOZ & COAST104.5. o Grape Encounters aired continuous spots and live promotion on the Quickbites program on station 92.5 with emphasis on the Chef Summer Sizzle Farmers Market promotion each week from the first of July through mid August. The Quickbites program ended in December 2017. The Uncorked program still airs across 70+ markets across the country. The closest stations are in Fresno.  Other o Infomercials continue to run on “Visitor TV” in the SLO Airport and in SLO County Hotels. The video is being replaced with the new ATBID video. o Commercials run before the movies at the Galaxy Theatre in Atascadero, Merced & Tulare for the larger events like Cruisin weekend and Winter Wonderland. Page 222 of 242 ITEM NUMBER: C-3 DATE: 01/23/18 Events:  July through December Event Recap o NEW Chef’s Summer Sizzle @ Farmers Market – This new series started Wednesdays from June 28 through August 16th. The seven-week series was a success keeping the market top-of-mind during the slower summer months. On average, the market grew an average of 20% in revenue each week. This summer the promotion will run from when school is out for the summer through when it begins (mid June – mid August). A new 2018 Farmers Market Calendar of events is in the works. o Cruisin’ Weekend – Cruise Nite registrations came in at 401 cars for 2016 vs. 415 cars in 2017. Although the numbers didn’t exceed last year, revenue exceeded last year by $1,615 for Car Registrations for Cruise Nite. Dancing in the Streets sold 1,849 beer/margaritas, several food vendors sold out and Margarita Man and several of the breweries came close to selling out. Overall attendance doubled that of 2016. Based on alcohol sales, attendance is guestimated at 3-4,000 people vs. approx. 2,000 in 2016. o 2nd Annual “Showdown” Cornhole Tournament – September 30, 2017, Sunken Gardens from 10 am – 6 pm. Event grew from 32 teams to 64 teams and is targeted to grow to a two-day event. The City collaborates with the Knights of Columbus and Kiwanis to bring the largest Cornhole Tournament to the Central Coast. o Holiday Event Series – The holiday event series kicked off with the highest attended “Light up the Downtown” Holiday Celebration yet! New holiday lights adorned Historic City Hall and horse drawn hayrides were added. Attendance grew by 19.6%. The Walk around the Lake was up 18.9% and the Zoo’s attendance that evening was up 25%. Winter Wonderland showed an increase of 15% and the Zoo’s Holiday Magic had the best attendance since 2006. o Other City Events: Saturday in the Park Summer Concert Series, Movies in the Gardens and our popular Zoo events like Ice Cream Zoofari, Zoo Boo and Holiday Magic continue to grow and be successful.  Upcoming Events and Event Ideas: o Tamale Festival: The 3rd Annual event will include over 45 vendors with 25 of them being Tamale Vendors. The amount of tamales available for purchase will be upwards of 15-20,000. In 2017, approximately 15,000 tamales were sold. This year we added the Los Gatos Locos band and will continue to feature the Mexican Dancing Horses, Soloist Manuel Enrique, Mariachi Mexicanisimo band, the Folklorico Dancers, and Tamale Eating contest in addition to the regular “Best Tamale” contest! Event is Free to attend. Page 223 of 242 ITEM NUMBER: C-3 DATE: 01/23/18 o Sweetheart Stroll – The City has teamed up with the Atascadero Chamber of Commerce to promote the Downtown with this popular, annual event. Feb 10th 1-4 pm, Tours of City Hall, Ricky Montijo serenading folks at Grape Encounters Empourium, roses for couples purchasing the Wine Stroll ticket and over 15 merchants participating in the wine pouring and providing special Valentine’s items for the patrons that visit their stores as part of this event. o Farmer’s Market – The City is teaming up with the North County Market team to create an annual event calendar starting with Valen tines week, celebrating the one-year Anniversary move to Sunken Gardens in April, Chef Summer Sizzle and Trick or Treating at the Market. There is quite a bit in store for the market this year. o City & ATBID Sponsored Events: Z-Day California Car Show (March 10th Central Coast Craft Beer Festival (March 24th); Tent City Marathon (March 25th) and Cider Festival (May 12th). o City Sponsored Events: Children’s Day in the Park (April 21st); Lake Fest (May 21st); Chamber Art & Wine Tours (March 23rd; August 24th; Nov 30th), and Atascadero Lakeside Wine Festival (June 23rd); and 4th of July Bluegrass Festival & Colony Days (July 4th / Oct 6th).  Upcoming Events and Event Ideas: 2018 Event Calendar (Handout) o Spring Festival at the Zoo: March 24th – April 8th o A Party for the Planet – Earth Day Celebration – April 21st at the Zoo – re-theming from Conservation Celebration. o Summer Concert Series: June 16th – August 11th o Farmers Market: Chef’s Summer Sizzle – mid June – mid August o Cruisin’ Weekend: August 17th & 18th o Movies in the Gardens: August 4th – September 1st o Other Event Ideas for 2018: Continue to expand lights for the “Light up the Downtown” Holiday Celebration.  Special Events upcoming and in progress: o Wine Speak Paso: Jan 9th – 11th o Z-Day California: March 10th o Central Coast Craft Beer Festival: March 24th o Tent City Marathon 2018: March 25th o Leadership SLO – March 9th There will be an oral presentation to review the above information and a report on how the marketing efforts have performed. There will also be an oral presentation from Verdin Marketing providing an update on the ATBID Tourism Marketing efforts. The budget updates to both the 2016-17 and the 2017-18 marketing plans are included and provide actual numbers (not final) to where the plan is performing to budget. Page 224 of 242 ITEM NUMBER: C-3 DATE: 01/23/18 FISCAL IMPACT: None. ALTERNATIVE: The City Council may provide staff direction on feedback on the 2017-18 Marketing Plan along with any desired adjustments to the advertising or the event schedule. ATTACHMENTS: 1. 2017-18 Marketing Plan 2. Marketing Budget Actuals Fiscal 2016-17 and YTD 2017-18 3. 2018 Events Calendar Page 225 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT: 01/23/18 1 City of Atascadero 2017-18 Marketing Plan 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 attract 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 complements 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, both private and public, 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. These assets complement our key selling points being a value destination, easy access to beaches and near the Paso Robles Wine Country as well as having the only Zoo on the Central Coast. Target Audience Visitors, Local residents, SLO County residents Geographic Market specific to City’s Marketing Plan  Local & County Residents  Tourists visiting our area  Outer Market defined in the ATBID Marketing Plan, which focuses on “Come, Sleep, Spend,” and allows the City to focus on its goal, “Stay, Spend, Enjoy.” Behavioral Target  Market to Local and County residents across all ages, families, active retirees, children.  Follows Atascadero ATBID Marketing Plan defined as families, culinary connoisseurs, leisure seekers and outdoor enthusiasts. Unique Selling Proposition 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 Page 226 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT: 01/23/18 1 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 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 or a game of cornhole or bocce ball, walking around the Lake, hiking, golfing, biking and horseback riding. Downtown Atascadero offers a growing craft brewery, cider 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. Measure the success of advertising efforts through website growth, Sales Tax, TOT revenues and increase of social media followers Objectives Objective #1: Develop two main advertising campaigns for the 2017-18 fiscal year focused around the Downtown core and the Charles Paddock Zoo. Campaigns are designed to promote the downtown, our local businesses, assets and events. Promotion Tactics  Broadcast TV Commercials ~ tailored messaging tagging key events.  Outdoor Advertising ~ Exposure as people are traveling through our county. o Billboard location during prime times of year in prime locations – Cuesta Grade. o In-market City Panels – Directional signage to visit our town and a reminder of things to do. o Transit billboards  Update and introduce new graphics on the back of the City’s Rideshare buses.  Hearst Castle Buses - Interior Signage Page 227 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT: 01/23/18 1  Digital Media Focus on growing website traffic across VisitAtascadero.com and Atascadero.org reaching consumers living in San Luis Obispo (SLO) County as well as things to do if visiting our area. Integrates with the Atascadero ATBID Marketing Plan that includes digital and social media. o Banner Ads  Target to local sites and geographically target Ad Networks (i.e., HGTV, Food Network, CNN, etc.) on all devices. o SEM (paid Search) & RETARGETING (Monthly) ~  Zip Code Targeted: Change zip codes to SLO County to Northern Santa Barbara County for the City and allow ATBID to focus on areas outside the county. SEM to follow same geographic focus.  Keywords include City businesses and assets including cider, craft breweries, wine, culinary, historical, entertainment, etc. to encourage visits to Atascadero. o E-Marketing (event specific) -  Targeting major events, like Brew at the Zoo, Dancing in the Streets, Winter Wonderland.  Social Media o Work to grow Instagram and continue growth on Facebook and Twitter. o Ongoing posts with event information across Visit Atascadero, Charles Paddock Zoo and City’s Facebook page. Boost posts where appropriate for events. o Follow and incorporate Visit Atascadero’s content calendar into other social media pages for the Zoo and the City.  Website Development – Charles Paddock Zoo website o Remodel the current website enhancing the content and having a tool to allow quick updates, as well as relevant event information for Zoo visitors. This will strengthen the site and provide a platform to better market the Zoo’s events and exhibits.  Print o Magazines – Brand advertising with focus to City’s assets and events with a strong in- market and tourism focus like Access’s Quarterly Visitors Guide and identify other magazines that have a strong, multi-market distribution, like Vintages, to be funded by the ATBID. o Newspapers – Premium ad positions that provide reach and frequency of advertising message.  Giveaways – Media sponsorship specific promotions designed to assist with increased advertising exposure (i.e., Radio giveaway for “Brew at the Zoo” tickets for listeners who call in, media tickets to help with gaining more advertising)  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 plus exposure over 60 US markets  Certified Brochure Distribution o Continued distribution of Charles Paddock Zoo brochure to be placed in local SLO County hotels with a coupon offer that is trackable. Visit Atascadero brochure to move to ATBID Marketing Plan. Page 228 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT: 01/23/18 1 Objective #2: Special Event Sponsorship to attract events to Atascadero. o Continue to seek out event opportunities to attract shows to our market and expand our event portfolio. Recent Special Event examples:  Attract from other areas: Z California Car Show (March 2017 & 2018)  Expand events held across the County to add our City: SLO Jazz Festival (11.11.17), Festival Mosaic (2016 & 2018)  Introduce new events: The Showdown Cornhole Tournament (Oct 22, 2016 & Sept 30, 2017); Tent City Marathon (March 25, 2018). o Continue to refine Special Event Sponsorship Program and implement special event criteria. Updated Special Event Sponsorship Form attached. Objective #3: Continue to grow and expand Event portfolio to grow and establish new events based on market trends and interest. Follow Event Tier Classification Guide – most emphasis on Tier 1:  Tier1: Large Signature Events (encourages overnight stay)  Tier 2: Signature Event (minimal overnight stay)  Tier 3: Single Day Event Event Plan Tier 1 Events: Large Signature Events (1-2 Night Hotel Stay) – Refine and continue to grow existing trademark events that encourage a longer weekend stay for visitors and that encourage local and County residents to participate. Continue to work with ATBID on Event ideas. o Atascadero Lakeside Wine Festival – Refine and grow the Zoo’s participation in the event and work with the Wine Festival Committee on ideas to continue to expand the weekend for extended stay. o Cruisin’ Weekend – Grow “2nd Annual Dancing in the Streets” along with Friday evenings Hot El Camino Cruise Nite and the Mid State Cruizers Car Show. Tier 2 Events: Signature Events -Expand existing events and introduce new events to offer more activities that increase interest and participation both locally and across the County. o Tamale Festival – Expand 3rd Annual festival into the Downtown area. Add musical entertainment. o Colony Days – continue to work with the Colony Days Committee on refining and growing this event. Continue to assist in marketing the event and the recent additions like “Tent City After Dark.” o Holiday Lighting – Target this year is to build on this event and launch the Holidays in Atascadero with synchronized lighting attracting visits from across the County all month long. On the evening of the lighting, leverage the Art & Wine Tour the Atascadero Chamber of Commerce hosts in our marketing efforts. Expand to include horse-drawn hay rides for all ages. Continue to offer hot cider, hot chocolate, a visit with Santa & Mrs. Claus, and rides on the Model-A Firetruck. A hospitality night with downtown merchants participating and attracting early holiday shopping in a fun and enjoyable setting. o Winter Wonderland – Continue to refine the event enjoyed by families both locally and across the County with over 10,000 in attendance. o New Events: Cider Festival (2nd – 2017), Z Day California Car Show (1st – 2017), Tent City Marathon (New - 2018); SLO Jazz Festival (New - Fall Jazz Fest: 11.11.17, Pavilion). Page 229 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT: 01/23/18 1 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 The Showdown Cornhole Tournament – Goal is to work with Knights of Columbus to pull this into a two-day event in 2018. This year, the California Cornhole Association is joining the tournament that will assist in that effort. o Brew at the Zoo Event – 3rd Annual, 2018 – work to grow the number of breweries in 2018. o Olive Oil Festival & Education Forum – Working with the Central Coast Olive Growers on interest in a Spring 2018 festival to bring to the educational portion to the Central Coast and work in the Farm to Table potential with local celebrity chefs, etc. 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  Farmer’s Market Promotions: Community Day – 1st Wed of Each Month & Chef’s Summer Sizzle (Newest); Movies in the Gardens; Saturday in the Park Summer Concert series. o One-time Events:  2016/17: SLO Cow Parade, Grand Opening of Farmer’s Market  2015: 60th Anniversary of the Zoo; Lighting of City Hall Event Tactics  Ongoing Public Relations and social media posts per event.  Secure sponsorship revenue with support from local businesses and with the media on sponsored matching programs.  Traditional media mix (print, radio & TV) and digital campaigns to promote each event. Objective #4: Outreach to merchants, Atascadero Chamber of Commerce, Atascadero Alliance, Traffic Way business co-op, Main Street Association and the Colony District organization to work together on promotions that focus on shopping local.  Restaurant Promotions o Themed promotions - Restaurant Month, Farmer’s Market, etc.  Local Retail ~ Shop Local Focus o Buy Local Promotions: Combination ads with discounts to drive traffic (i.e., Vintages ad).  Business Focused Events – Designed to drive traffic to Atascadero o Examples include Cow Parade, Farmers Market, Slider Day and Taco Day on Traffic Way, etc. Future ideas: Brews & Blues, Food Truck Event and adding to expand existing events that include downtown restaurants and tasting rooms. Page 230 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT: 01/23/18 1 Objective #5: Measurement of 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 Plans (City & ATBID) to see growth patterns in page views, unique visitors and geography.  Zoo - Utilize the Zoo’s zip code information and attendance figures to gauge success with consistent marketing efforts to grow Zoo attendance and traffic into our City.  Transient Occupancy Tax (TOT) to gauge increase in hotel stays year over year.  Sales Tax to gauge increase across different business categories. Specific categories to watch: Restaurants & Retail.  Colony Park Community Center - Increase in participation of sign ups to the variety of activities  Pavilion on the Lake – growth in weddings and events and website traffic.  Community feedback through partnering with the Chamber of Commerce as well as the various business meetings like breakfast@TheCarlton, Atascadero Alliance and downtown business organizations.  Chamber of Commerce through increase in visitor walk-ins and website traffic. Page 231 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT: 01/23/18 1 City of Atascadero Marketing Plan – 2017-18 Budget Details (July 1-June 30, 2018) Event Budget Details Includes advertising based on the scope of the event. Budget does not include sponsors that offset expenses.* Farmers Market – Event Promotions/ Summer Sizzle & Community Days $ 5,000 Dancing in the Streets – Cruisin’ Weekend – August 19, 2017 $13,000 The Showdown Cornhole Tournament – September 30, 2017 $ 3,500 SLO Jazz Festival – Fall Fest (Split with ATBID – Nov 11, 2017) $ 6,075 Holiday Lighting (NEW!) $15,400 Winter Wonderland Event - December 8th, 2017 $23,000 Tamale Festival – January 20, 2018 $12,000 Charles Paddock Zoo: Brew at the Zoo – April 28, 2018 $ 8,000 Miscellaneous Events $ 3,525 (Art & Wine Tour, Walk Around the Lake, Sweetheart Stroll, Lake Fest, CDIP/ Earth Day, etc.) Event Staff Summer Intern & Reactive Event Costs (i.e., Equipment, décor, etc.) $ 4,000 Total Event Costs $93,500 Promotion Budget Details  Broadcast TV (KSBY/ Charter) $14,000 (Promotes Shop Local/ City assets/ events/ seasonal - 6 months)  Digital Media $16,000 (Promotes over locally targeted ad networks, retargeting, local websites)  Outdoor Advertising (Includes misc. signage, Hearst & Ride Share Buses) $37,500  Print/ Newspapers & Magazines (Vintages, Visitors Guide) $10,000  Brochures Distribution & Printing (Roads, Zoo, Business brochure) $ 4,000  Right Angle Inc.: Uncorked and Quick Bites Grape Encounters Radio Show $16,000  Graphics $ 4,000  Website Development (Zoo – NEW!) $ 5,000 Total Promotions Costs $106,500 TOTAL Event & Promotions Estimate: $200,000* Page 232 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT: 01/23/18 2 City of Atascadero Marketing Budget YTD 2017-18 & 2016-17 Final Budget Details City of Atascadero Marketing Plan – 2017-18 Budget Details (July 1-June 30, 2018) Event Budget Details Includes advertising based on the scope of the event. Budget does not include sponsors that offset expenses.* Farmers Market – Event Promotions/ Summer Sizzle & Community Days $ 5,000 Dancing in the Streets – Cruisin’ Weekend – August 19, 2017 $13,000 The Showdown Cornhole Tournament – September 30, 2017 $ 3,500 SLO Jazz Festival – Fall Fest (Split with ATBID – Nov 11, 2017) $ 6,075 Holiday Lighting (NEW!) $15,400 Winter Wonderland Event - December 8th, 2017 $23,000 Tamale Festival – January 20, 2018 $12,000 Charles Paddock Zoo: Brew at the Zoo – April 28, 2018 $ 8,000 Miscellaneous Events $ 3,525 (Art & Wine Tour, Walk Around the Lake, Sweetheart Stroll, Lake Fest, CDIP/ Earth Day, etc.) Event Staff Summer Intern & Reactive Event Costs (i.e., Equipment, décor, etc.) $ 4,000 Total Event Costs $93,500 Promotion Budget Details Broadcast TV (KSBY/ Charter) $14,000 (Promotes Shop Local/ City assets/ events/ seasonal - 6 months) Digital Media $16,000 (Promotes over locally targeted ad networks, retargeting, local websites) Outdoor Advertising (Includes misc. signage, Hearst & Ride Share Buses) $37,500 Print/ Newspapers & Magazines (Vintages, Visitors Guide) $10,000 Brochures Distribution & Printing (Roads, Zoo, Business brochure) $ 4,000 Right Angle Inc.: Uncorked and Quick Bites Grape Encounters Radio Show $16,000 Graphics $ 4,000 Website Development (Zoo – NEW!) $ 5,000 Total Promotions Costs $106,500 TOTAL Event & Promotions Estimate: $200,000* Page 233 of 242 Net Budget Year-to-Date Actual Expenditures Year-to-Date Estimated Revenue Net Actual Event Budget Details Charles Paddock Zoo: Brew at the Zoo – Spring 2018 $ 8,000 $ - 250$ $ 250 Fall Fest 6,075 - - - Winter Wonderland 23,000 (27,335)*14,710 * (12,625) Light up the Downtown - Holiday Celebration 15,400 (23,770)300 Tamale Fest (Food Event/Annual) 12,000 (5,306)*1,000 * (4,306) Cruise Nite - Dancing in the Streets 13,000 (25,912)3,900 (22,012) Corn Toss Showdown at Sunken Gardens 3,500 (907)*- (907) Miscellaneous Existing Event/Event Ideas (Walk Around Lake, Art & Wine/ Ideas, Farmer's Market) 8,525 (18,142)*- (18,142) Reactive Event Costs (equipment needs, unplanned costs, decor)4,000 (1,804) - (1,804) Total Event Costs 93,500 (103,176) 20,160 (59,546) Promotion Budget Details Broadcast TV (KSBY/ KCOY) 14,000 (5,830)- (5,830) Digital Media 16,000 (5,080)- (5,080) Outdoor Advertising 37,500 (24,723)- (24,723) Print/ Newspapers & Magazines 10,000 (5,943)- (5,943) Brochure Distribution/Printing 4,000 (3,755) (3,755) Professional Fees/ Contract Services: Right Angle Inc.16,000 (16,500)- (16,500) Agency Costs (branding /graphics)4,000 (2,917)- (2,917) Miscellaneous (local chapter dues, website development, etc.)5,000 (288)- (288) Total Promotions Costs 106,500 (65,035)- (65,035) Total Events & Promotions Costs $ 200,000 $ (168,211) $ 20,160 $ (124,581) * Events & Sponsors have not been closed out City of Atascadero Marketing Plan 2017-18 Budget Details – Update Budget vs. Actual (as of 12/31/17) ITEM NUMBER: C-3 DATE: 01/23/18 ATTACHMENT: 2 Page 234 of 242 Net Budget Actual Expenditures Actual Revenue Net Actual Event Budget Details Charles Paddock Zoo: One time: 60th Anniversary $ 1,500 $ - $ - $ - Brew at the Zoo – Spring 2017 10,000 (9,171)16,470 7,299 SAVOR 10,000 - - - Winter Wonderland 20,000 (25,903)15,545 (10,358) Tamale Fest (Food Event/Annual) 10,000 (20,665)2,275 (18,390) Cruise Nite - Dancing in the Streets 10,000 (22,448)3,060 (19,388) Corn Toss Showdown at Sunken Gardens 10,000 (7,662)260 (7,402) Miscellaneous Existing Event/Event Ideas (Walk Around Lake, Art & Wine/ Ideas, Cow Parade, Food Trucks) 10,000 (15,073)1,000 (14,073) Reactive Event Costs (equipment needs, unplanned costs, decor)10,000 (1,162) - (1,162) Total Event Costs 91,500 (102,083) 38,610 (63,473) Promotion Budget Details Broadcast TV (KSBY/ KCOY) 15,000 (21,925)- (21,925) Digital Media 10,500 (18,328)- (18,328) Outdoor Advertising 26,000 (32,013)- (32,013) Print/ Newspapers & Magazines 6,000 (18,013)- (18,013) Brochure Distribution/Printing 12,000 (9,746)- (9,746) Professional Fees/ Contract Services: Right Angle Inc.16,500 (20,000)- (20,000) Agency Costs (branding /graphics)17,500 (2,313)- (2,313) City Hall Tours – Staff Saturday 5,000 (1,130)- (1,130) Miscellaneous (local chapter dues, etc.)- (100)- (100) Total Promotions Costs 108,500 (123,568)- (123,568) Total Events & Promotions Costs $ 200,000 $ (225,652) $ 38,610 $ (187,042) City of Atascadero Marketing Plan 2016-17 Budget Details – Final ITEM NUMBER: C-3 DATE: 01/23/18 ATTACHMENT: 2 Page 235 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT 01/23/18 3 CITY OF ATASCADERO EVENT CALENDAR 2018 Farmers Market ~ Every Wednesday Sunken Gardens, Downtown Atascadero Daylight Savings Hours 3-6 pm Mid March – October; Fall Hours 3-5 pm November – Mid March Market Event Calendar: www.VisitAtascadero.com January 2018 o 3rd Annual Tamale Festival - Saturday, January 20, 2018 from 11-4 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 February 2018 o Father Daughter Dance ~ Enchanted Evening! Pavilion on the Lake; Feb 2nd 6:30- 9:30 pm (Ages 11 and under) & Feb 3rd 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. TICKETS WILL NOT BE SOLD AT THE DOOR. $31/couple residents, $36/couple non- residents, $5 additional daughters. For ticket information contact (805) 470-3360 or www.Atascadero.org o Sweetheart Stroll, February 10th, 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! Presented by the Atascadero Chamber of Commerce and the City of Atascadero. o North County Wedding Faire, Pavilion on the Lake, February 25th, 3:30 – 6:30 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 Page 236 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT 01/23/18 3 March 2018 o 4th Annual Z-Day California Atascadero, March 10th 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. 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 23rd 5:30 – 8:30 pm Downtown Atascadero $15/ ticket includes wine glass, tastings among downtown merchants, tours of Historic City Hall. Presented by the Atascadero Chamber of Commerce. o Dancing with Our Stars! Pavilion on the Lake – March 22, 23 & 24th, 5 – 10 pm! o Spring Festival @ the Charles Paddock Zoo March 24th – April 8th! Spring will be spectacular this year because your favorite backyard friends are back! Come enjoy fur and feathers for a limited time! The Spring Festival is included with General Admission to the Zoo. For more information call (805) 461 -5080; www.charlespaddockzoo.org o NEW Central Coast Craft Brewery Festival, March 24 th, 10-5 pm, Sunken Gardens! More to come on this new event! Tickets available at www.centralcoastcraftbeerfest.com o NEW Tent City Marathon, March 25th, 6:30 am – 6 pm Sunken Gardens! For information and registration for this event, www.tentcitymarathon.com April 2018 o Spring Festival @ the Charles Paddock Zoo – NOW through – April 8th! Spring will be spectacular this year because your favorite backyard friends are back! Come enjoy fur and feathers for a limited time! The Spring Festival is included with General Admission to the Zoo. For more information call (805) 461-5080; www.charlespaddockzoo.org o “A Party for the Planet” Earth Day at the Charles Paddock Zoo - AND Children’s Day in the Park! Both events are teaming up to bring you a great day of education, conservation and fun for all ages! Mark your calendar for Saturday, April 21st, 10 – 3 pm at the Zoo and Atascadero Lake Park. For more information, call (805) 461-5080. o 4th Annual BREW AT THE ZOO at the Charles Paddock Zoo, Saturday, April 28th from 5:30-9:00 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 and at www.AtasacderoChamber.org . Visit www.VisitAtascadero.com or call (805) 461- 5080. Page 237 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT 01/23/18 3 May 2018 o 3rd Annual Cider Festival – May 12th 5-8:30 at the Pavilion on the Lake! Tune into www.centralcoastciderfestival.com for tickets and more information! o Cookie Adventure at the Charles Paddock Zoo - May 13th from 11 am to 2 pm. Enjoy a variety of cookies this Mother’s Day at the Zoo! o 3rd Annual Lake Fest – May 19th from 12-5 pm at Atascadero Lake Park. Activities for all ages starting with 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 28th from 12-3 pm at the Faces of Freedom Veterans Memorial on Hwy 41 at Atascadero Lake Park. June 2018  Farmers Market ~ CHEF’S SUMMER SIZZLE! Every Wednesday from 3-6 pm June 20th through August 8th! o Saturday in the Park ~ Summer Concert Series Kicks Off with an Evening of Jazz –June 16th 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 Concerts will be every Saturday through August 11th - only exception is June 23rd. Following are the dates to mark on your calendar: June 16th: Evening of Jazz! June 30th, July 7th, July 14th, July 21st, July 28th, August 4th, August 11th: Concerts are FREE to the Public! Food is available for purchase! o Tuesday in the Park BBQ– Tuesdays June 19th through August 28th! 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. For more information contact (805) 466-2044 or www.AtascaderoChamber.org. o Atascadero Wine Festival Weekend! June 22nd – June 24th:  Kiwanis & Mayors’ Winemaker Dinner – Pavilion on the Lake ~ June 22nd at 6 pm proceeds benefit a local non-profit.  Wine Festival Morning Golf Tournament – June 23rd presented by Atascadero Optimist Club and Chalk Mountain Golf Course  Atascadero Lakeside Wine Festival – June 23rd 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 24th – “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/ Page 238 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT 01/23/18 3 July 2018  Farmers Market ~ CHEF’S SUMMER SIZZLE! Every Wednesday from 3-6 pm NOW through August 8th! Saturday in the Park ~ Summer Concert Series at the Atascadero Lake Park Bandstand! July 7th, July 14th, July 21st, July 28th, August 4th, August 11th 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 2nd Annual Colony Days 4th of July Bluegrass Freedom Festival at Atascadero Lake Park – Presented by Colony Days & Colony Media, the 4th of July Bluegrass Freedom Festival is an exciting new addition to the City of Atascadero! This year plan your 4th of July Celebration at Atascadero Lake Park where you can enjoy music, boating, bounce houses and games! Admission is free and there will be food, beer and wine available for purchase. If you have plans for Fireworks, you can enjoy this event on your way out to the Coast! For more information visit www.atascaderofourthofjuly.com o Tuesday in the Park BBQ – Tuesdays July 10th through August 28th! 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. For more information contact (805) 466-2044 or www.AtascaderoChamber.org. o Ice Cream Zoofari at the Charles Paddock Zoo! July 14th 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 18th – July 29th Paso Robles – for more info: www.midstatefair.com August 2018  Farmers Market ~ CHEF’S SUMMER SIZZLE! Every Wednesday from 3-6 pm NOW through August 8th! o Movies in the Gardens at Sunken Gardens: August 4, 11, 25 & Sept 1st, 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 info call (805) 470-3360. o Saturday in the Park ~ Summer Concert Series at the Atascadero Lake Park Bandstand! August 4 & 11th 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 28th). 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. For more information contact (805) 466-2044 or www.AtascaderoChamber.org. Page 239 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT 01/23/18 3 August 2018 (Continued) o Cruisin’ Weekend in Atascadero: August 17th – August 18th  Hot El Camino Cruise Night Kicks off the weekend on Friday, August 17th 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 18th 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)  3rd Annual Dancing in the Streets, Saturday, August 18th 5-10 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 24th 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 2018 o Movies in the Gardens at Sunken Gardens: Sept 1st, 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 3rd Annual Showdown Cornhole Tournament – Saturday & Sunday, September 22nd & 23rd, 9 am – 5 pm Sunken Gardens, Atascadero, for more information visit www.VisitAtascadero.com October 2018 o Colony Days – October 6th 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! o Zoo Boo at the Charles Paddock Zoo, October 27th 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. Page 240 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT 01/23/18 3 November 2018 o Armed Forces Day - November 10th, 10-4 pm - All Active Duty Armed Forces men, women and their immediate families (spouses and children) receive free admission to the Zoo. Bring your valid military ID to enjoy a visit to the only Zoo on the central coast. We are grateful for this opportunity to say ‘THANK YOU’ to the men and women serving here and abroad! o Veteran’s Day at the Faces of Freedom Veterans Memorial, Atascadero Lake Park November 11th 11 am! Visit www.facesoffreedom.com. o Holiday Boutique at the Pavilion on the Lake, November 17th, 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 4th Annual Taco Day on Traffic Way – November 17th 1-4 pm, Downtown Atascadero along Traffic Way – shop and eat your way down Traffic Way and see the cool businesses along the way! Family Friendly! Ticket information at the Carlton! o Annual Light Up the Downtown Holiday Celebration! - November 30th, 5:00 pm – 8 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 participating downtown merchants! This event will then be followed by the lighting of our Historic City Hall at 6 pm. Children can enjoy a visit with Santa following the lighting as well as enjoy a complementary tour of Historic City Hall, horse drawn hayrides, Model A fire truck rides 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! December 2018 o Holiday Musical Walk Around the Lake – December 1st, 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. o Winter Wonderland ~ one of Central Coasts Largest Holiday Events! December 7th, 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! o Holiday Magic at the Charles Paddock Zoo - December 15th from 10-1 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! Page 241 of 242 ITEM NUMBER: C-3 DATE: ATTACHMENT 01/23/18 3 2018 Farmers Market Event Calendar! Wednesdays, Sunken Gardens Downtown Atascadero 3-6 pm mid March - October; 3-5 pm November – mid March Date Featured Event February 14 Valentine’s Bouquet Giveaway March 14 Celebrate St. Patrick’s Day! PLUS Daylight Savings Time Begins: 3-6 pm! April 4th One Year Anniversary Sunken Gardens! Kick off Community Day – 1st Wednesday of each month through September! May 2nd Community Day! Includes special Music and Hop’s bounce house! June 6th Community Day! Includes special Music and Hop’s bounce house! June 20th Chef’s Summer Sizzle BEGINS! Each Wed. through August 8th! Free Chef Samples (while supplies last); Chef’s secret recipe & buy ingredients direct that day from the Farmers! Plus a featured music artist and a bounce house for the kids from Hop Bounce House! July 4th 4th of July Market: PLUS Community Day & Chef’s Summer Sizzle August 1st Community Day PLUS Chef’s Summer Sizzle! August 8th LAST Chef’s Summer Sizzle! September 5th Last Community Day of 2018! October 31st Halloween at the Market – come dressed in Costume for a special treat from the Farmers! November 7th Fall/ Winter Hours Begin 3-5 pm December 5th Holiday Market – special treats and music! Community Day (1st Wed. of each month, April – September): Complementary invitation to non-profit organizations, as well as vendors from merchandise to wine, cider and beer to come down to the market to sell their merchandise & promote their business! PLUS listen to a featured music artist and enjoy a bounce house for the kids from Hop’s Bounce House! For more information on featured music artists and chefs, go to www.VisitAtascadero.com Page 242 of 242