FY 2014 Annual Financial Report

Transcription

City of Pismo Beach, California
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2014
Cover photograph reflects the City of Pismo Beach pier.
Photo credit – Kelly Hayes of TJA Advertising
Fiscal Year Ended June 30, 2014
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
Shelly Higginbotham
Edward Waage
Erik Howell
Mary Ann Reiss
Kris Vardas
City Manager
Prepared by
James R. Lewis
Administrative Services Department
www.pismobeach.org
THIS PAGE INTENTIONALLY LEFT BLANK
City of Pismo Beach
Table of Contents
Page
Table of Contents
i-v
Introductory Section
Letter of Transmittal
viii-xiv
List of Principal Officials
xv
Organizational Chart
xvi
GFOA Certificate of Achievement for Excellence in Financial Reporting
xvii
Financial Section
Independent Auditors’ Report
1-3
Management’s Discussion and Analysis
4-13
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position
14-15
Statement of Activities
16-17
Fund Financial Statements:
Balance Sheet – Governmental Funds
18
Reconciliation of the Balance Sheet of Governmental Funds to the
Government-wide Statement of Net Position
Statement of Revenues, Expenditures and Changes in Fund Balance –
Governmental Funds
19-20
21
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balance of Governmental Funds to the Government-wide Statement
of Activities
22-23
Statement of Fund Net Position – Proprietary Funds
24-25
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds
i
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City of Pismo Beach
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Page
Statement of Cash Flows – Proprietary Funds
27-28
Statement of Fiduciary Net Position – Employee Benefit Trust Fund
29
Statement of Changes in Fiduciary Net Position – Employee Benefit Trust Fund
30
Notes to the Basic Financial Statements
31-56
Required Supplementary Information Section
Budgetary Comparison Schedule – General Fund
58-59
Budgetary Comparison Schedule – Housing In Lieu Special Revenue Fund
60
Schedule of Funding Progress for Other Post Employment Benefits (OPEB)
61
Schedule of Employer Contributions for Other Post Employment Benefits (OPEB)
62
Notes to Required Supplementary Information Section
63
Supplementary Information Section
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds
67-70
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance – Nonmajor Governmental Funds
71-74
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual (Budgetary Basis) – Nonmajor Governmental Funds
and the Capital Projects Fund:
Gas Tax Fund
75
Local Transportation Streets Fund
76
PEG Fund
77
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City of Pismo Beach
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Page
Noncapital Grants Fund
78
Local Business Improvement Fund (LBID)
79
Chapman House Estate
80
Public Facilities Fund
81
Park Development Fund
82
Capital Outlay Fund
83
Circulation Improvement Fund
84
Impact Fees Fund
85
Developer Impact Fees Fund
86
Underground Utility Fund
87
City of Pismo Beach Public Financing Authority Fund
88
Indio/El Portal Assessment District Fund
89
Visalia Assessment District Fund
90
Reassessment Districts Fund
91
Combining Statement of Fund Net Position – Nonmajor Proprietary Funds
93
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position –
Nonmajor Proprietary Funds
94
Combining Statement of Cash Flows – Nonmajor Proprietary Funds
95
Other Schedules:
Comparative Schedule of Capital Assets By Source
96
Schedule of Changes in Capital Assets By Source
97
Schedule of Capital Assets By Function and Activity
98
Schedule of Changes in Capital Assets By Function and Activity
99
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City of Pismo Beach
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Page
Statistical Section
Financial Trends Information:
Schedule of Net Position by Component – Last Ten Fiscal Years
Schedule of Changes in Net Position – Last Ten Fiscal Years
102
103-106
Schedule of Fund Balance, Governmental Funds – Last Ten Fiscal Years
Schedule of Revenues, Expenditures and Changes in Fund Balance,
Governmental Funds and Debt Service Ratio – Last Ten Fiscal Years
107
108-109
Revenue Capacity Information:
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years
110
Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years
111
Principal Property Tax Payers – Top Ten Payers – Last Ten Fiscal Years
112-113
Property Tax Levies and Collections – Last Ten Fiscal Years
114
Sales Tax Revenue Base Data – Last Ten Fiscal Years
115
Principal Sales Tax Generators by Industry – Revenue Base Concentration
Data – Last Ten Calendar Years
116-117
Principal Sales Tax Payers – Top 25 – Last Ten Fiscal Years
118-119
Transient Occupancy Tax Revenue Base Data – Last Ten Fiscal Years
120
Principal Transient Occupancy Tax Payers and Other Data – Last Ten Fiscal Years
121
Principal Transient Occupancy Payers – Top Ten in Alphabetical Order – Last Ten Fiscal Years
122
Water and Sewer Rates for Single Family Residents – Last Ten Fiscal Years
123
Principal Water and Wastewater Payers – Revenue Base Concentration
Data – Last Ten Fiscal Years
124
Principal Water Sales Purchasers – Top Ten – Last Ten Fiscal Years
125
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City of Pismo Beach
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Page
Debt Capacity Information:
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years
126
Ratios of General Bonded Debt – Last Ten Fiscal Years
127
Direct and Overlapping Governmental Activities Debt – Current Year
128
Legal Debt Margin Information – Last Ten Fiscal Years
129
Pledged Revenue Coverage – Last Ten Fiscal Years
130-131
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years
Principal Employers – Top Ten – Last Eight Fiscal Years
132
133-134
Full-Time Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years
135
Operating Information:
Operating Indicators by Function/Program – Last Ten Fiscal Years
136
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years
137
Bond Issue Continuing Disclosure Information
Series 2007A Lease Revenue Refunding Bonds
138
Series 2012 Wastewater Refunding Revenue Bonds
139-143
Water Enterprise Fund
144-146
Other Independent Auditors’ Report
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
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148-149
Introductory Section
Administrative Services Department
760 Mattie Road
Pismo Beach CA 93449
Ph: 805-773-4655 Fax: 805-773-7065
December 22, 2014
To the Honorable Mayor,
Members of the City Council, and
Citizens of the City of Pismo Beach
REPORT PURPOSE AND ORGANIZATION
It is our pleasure to present to you the Comprehensive Annual Financial Report (CAFR) of the City of
Pismo Beach, California for the fiscal year ended June 30, 2014. The City follows a policy of preparing
a complete set of financial statements in conformity with U.S. generally accepted accounting principles
(GAAP) after the end of each fiscal year. This report is published to fulfill that policy for the fiscal year
ended June 30, 2014. It is the thirteenth year the City has prepared a CAFR.
Management of the City of Pismo Beach assumes full responsibility for the completeness and reliability
of the information contained in this report, based upon a comprehensive frame-work of internal control
that the City has established for this purpose. Because the cost of internal control should not exceed
anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the
City’s financial statements are free of material misstatements.
Audited Financial Statements
The City’s financial statements have been audited by Glenn Burdette, a firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the City for the fiscal year ended June 30, 2014 are free of material misstatement. The
independent auditor concluded, based upon the audit, that there was reasonable basis for rendering an
unqualified independent auditor’s report that the City of Pismo Beach’s financial statements for the
fiscal year ended June 30, 2014 are fairly presented in conformity with GAAP. The independent
auditors report is located at the front of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). The MD&A complements this letter of transmittal and should be read in conjunction with it.
The City’s MD&A immediately follows the independent auditor’s report.
Report Organization
This report is organized in three sections: introductory, financial, and statistical.
1. The Introductory section includes this transmittal memorandum and general information on the
City’s government structure and the services provided. It includes a list of principal officials, an
organization chart, and the Government Finance Officers Association’s (GFOA) Certificate of
Achievement for Excellence in Financial Report.
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2. The Financial section contains the independent auditor’s report on the financial statement audit, the
Management Discussion & Analysis (MD&A), basic financial statements, Required Supplementary
Information; and combining and individual fund presentations and supplementary information.
3. The Statistical section includes selected financial and demographic information.
PROFILE OF THE CITY OF PISMO BEACH
The City of Pismo Beach was incorporated in 1946. The City is located on the Central Coast of
California about 200 miles north of Los Angeles. The city is visited annually by a substantial number of
tourists seeking to enjoy the area’s moderate climate, ocean views and sunsets, fine restaurants, and
the relaxing atmosphere unique to coastal communities. The City’s downtown core area and hotel
areas are anchored by the City owned Pier extending into the Pacific Ocean. The City is home to about
7,705 individuals, and most of the City is residential with a continuing trend of new homes being built
with spectacular ocean views.
Form of Government
The City operates under a council-manager form of government. Policy making and legislative
authority are vested in the City Council consisting of the elected Mayor and four other elected Council
members. The Council is responsible, among other matters, for passing ordinances, adopting the City
budget, appointing committees, and hiring the City Manager. The City Manager is responsible for
carrying out the policies and ordinances of the City Council, for overseeing the daily operations of the
City, and for appointing other employees and otherwise managing daily operations of the City. The
Mayor is elected to two year terms, and the Council is elected to four year staggered terms, with two
members elected every two years.
City Services
The City provides a full range of municipal services including fire and police protection, construction
and maintenance of City streets, storm drains, bridges, and similar infrastructure type assets; park
maintenance; community recreation activities and public facilities. In terms of business-type activities,
the City provides water, wastewater, parking, pier, and transit services through the operation of its
enterprises.
Budget Process and Budgetary Control
The City’s biennial budget serves as the foundation for the City of Pismo Beach’s financial planning and
control system. All departments of the City submit requests for appropriations to the City Manager.
The City Manager uses these requests as a starting point for developing a proposed budget. The City
Manager presents a proposed budget to the City Council every two years. The Council holds public
hearings on the proposed budget and then ultimately adopts a formal budget. The budget is adopted
by fund, function, department, and object. The Council periodically reviews the City’s actual financial
activity in relationship to the original budget, and as necessary, amends the original budget to reflect
changing conditions during the fiscal year.
ECONOMIC CONDITION
Long-Term Financial Planning
The City incorporates long-term financial planning into its budget process in several ways.
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First, the City has established a set of financial policies that were reviewed by the City Council and
Executive Management Team in April 2013 during the development of the two-year budget and
updated by the Council on June 6, 2013 at the Special Budget Meeting. These policies establish
goals for the allocation of public resources in the manner best suited for the efficient provision of
services to citizens and visitors present within the City. Some of these policies call for maintaining
adequate cash reserves and providing on-going maintenance of infrastructure and buildings, which
are vital to sound fiscal management.
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Second, the Council adopts short-term (2 years), mid-term (4 years), and long-term (5 or more
years) goals and priorities for the organization after taking into account public input.
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Third, the City maintains a five year operating projection for the General Fund and the Water and
Wastewater Enterprise Funds. The General Fund projection is updated quarterly and shared with
the City Council annually. These projections allow management to see what the future could look
like given a set of assumptions and is evaluated in the context of whether decisions are sustainable
over the long term.
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Finally, the City has a ten-year long-range capital planning process that helps drive annual capital
funding decisions as well as periodic bond issues for larger investments.
The general fund’s budget to actual comparison, a major governmental type fund under the reporting
standards, is presented as required supplementary information in a separate section of this report
immediately following the notes to the financial statements. For the City’s other governmental-type
funds, a budget to actual comparison schedule is presented as optional information in the section of
this report containing combining financial statements and individual fund schedules.
Economic Condition and Outlook
The City’s economy is largely driven by visitors and businesses serving visitors. These businesses
include hotels, motels, and recreation vehicle parks and contribute hotel taxes that make up 40.1% of
the City’s General Fund revenues. Sales and use tax revenues make up 20.6%, largely consisting of
revenues from a variety of restaurants, the Pismo Beach Prime Outlet Center for retail purchases of
general consumer goods, and fuel service stations. Other businesses such as hardware and building
supplies stores, grocery stores, and drug stores are supported by visitors and local residential growth in
the area. Other national economic impacts have been felt in the City, but to a lesser extent. Property
values were impacted by the burst in the housing bubble, but to a lesser extent than many cities.
Property values increased by over 10% per year in FY 2005 through FY 2008, then grew at a slower
pace in FY 2009 and FY 2010. Property values declined in FY 2011 and FY 2012 by about 1% per
year, but started climbing during FY 2013 and FY 2014.
Fortunately, due to the City’s Conference and Visitors Bureau promotion efforts, the focus and
investment of our hoteliers and business community, and a variety of external factors, tourism in our
City has flourished during FY 2014; revenues were much higher than expected. Visitors have come to
Pismo Beach, many for the first time, growing our revenues from hotel occupancy, restaurant, and retail
sales. Additionally, during this period, operating costs were maintained at or below budgeted levels.
These unanticipated revenues combined with tightened expenditures have allowed the City to
accumulate a healthy General Fund unassigned fund balance.
To illustrate this revenue growth in FY 2014 compared to the previous year, the City’s tax revenues
have increased from the previous year by 4.4% for all funds and 4.7% for the General Fund. After
removing the one-time repayment of $328 thousand from the State in FY 2013 for borrowing 8% of the
City’s property tax revenues per Proposition 1A in 2009, the increase was actually 6.3% for all funds
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and 6.8% for the General Fund. About 81.8% of the City’s General Fund revenues come from the local
hotel tax, sales tax revenues, and local property taxes. After removing the one-time repayment of $328
thousand from the State in FY 2013 for borrowing 8% of the City’s property tax revenues per
Proposition 1A in 2009, General Fund property tax related revenues increased by 4.0% from FY 2013.
Sales and use tax revenues, including the half-cent transaction sales and use tax, came in at $4,104
thousand compared to $3,906 thousand in FY 2013, or 5.1% higher in FY 2014. If the half-cent
transaction sales and use tax is removed from the equation, sales taxes actually came in at around
$2,761 thousand in FY 2014 compared to $2,589 thousand in FY 2013, or 6.7% higher. The half-cent
sales tax revenues came in at $1,343 thousand, or 2.0% greater than FY 2013 by $26 thousand. The
hotel tax revenues came in at $7,988 thousand, or 9.7% greater than FY 2013 by $709 thousand.
Another significant growth in revenues across several funds was in permit revenues and impact fees
due to development around the City. The largest of these revenues are related to the permitting of the
Vistas at Pismo Village on Wadsworth Avenue, a number of vacant lots that are being developed for
single family homes in tract 2554 and Costa Del Sol and Costa Brava, and 110 Oak Park. Permit
revenues across all funds increased from $836 thousand in FY 2013 to $1,992 thousand in FY 2014, a
$1,155 thousand, or 138% increase. Impact fee revenues across all funds increased from $284
thousand in FY 2013 to $798 thousand in FY 2014, a $514 thousand or 181% increase. These
revenues are considered one-time revenues as the area is now developed.
Other improvements in the City’s economy reflect a positive outlook. According to the Bureau of Labor
Statistics, the unemployment rate in the San Luis Obispo-Paso Robles Metropolitan Statistical Area is
5.4% for the September 2014, which is lower than the 6.4% as reported in September 2013. According
to the California Department of Finance, the population factor for Pismo Beach remained relatively
stable from January 1, 2013 to January 1, 2014 from 7,726 to 7,705.
Relevant Financial Policies
The City of Pismo Beach has adopted a comprehensive set of financial policies to provide guidance for
all fiscal activities and resource allocation decisions. The following policies are particularly relevant to
the City’s financial performance in FY 2014.
Reserves: Establish and maintain a General Fund reserve of 21% of budgeted expenditures in the
General Fund. The City maintained a General Fund reserve of 21% of budgeted operating expenditures
and did not use any of these reserves.
Fiscal Management: Annually consider reduction of long-term debt as a use of revenues. The City
paid the full amount of its California Joint Powers Insurance Authority retrospective payment with
available General Fund unassigned fund balance and avoided interest costs on this amount.
Infrastructure: Contribute annually for the improvement of infrastructure. The City contributed to
various infrastructure improvements in FY 2014, including street paving, the Bello Bridge project, and
design of the Sludge Dewatering Improvements project.
Projects Accomplished in FY 2013-14
Pismo Beach is an active and vibrant community, with a municipal government that is proactive and
prepared to respond to changing community needs. Even with a small staff, the City has accomplished
many projects in FY 2013-14.
The following list highlights some of the most significant
accomplishments in FY 2013-14.
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Infrastructure Maintenance and Beautification
 Completed majority of the design work for the Five Cities Lift Station Replacement Project
 Completed majority of the design work for the Sludge Dewatering Improvement Project
 Approved the City’s Downtown Strategic Plan, a plan to outline future changes to revitalize and
improve the Downtown area
 Purchased undergrounding PG&E credits from SLO County towards undergrounding of utilities on
Shell Beach Road
Housing, Health, and Safety
 Reviewed the City’s Americans with Disabilities Act (ADA) program; updated the City’s selfevaluation and transition plan, programs, policies, notices, and designation of the City’s ADA
Coordinator; and updated the City’s ADA Grievance policy.
 Approved permits for homes on the Vistas at Pismo Village on Wadsworth Avenue, a number of
vacant lots developed for single family homes in tract 2554 and Costa Del Sol and Costa Brava,
and 110 Oak Park.
Preservation of essential services and fiscal health
 Increased the General Fund Reserves from 20% to 21%
 Established a Risk Management Reserve contributing $50,000 each year to fund unanticipated
general liability and workers’ compensation costs
 Successfully negotiated with the Police Officers Association (POA) bargaining unit for a new two
year agreement, including pension reform for employee cost sharing.
 Implemented City Council policy changes and processes to implement Affordable Care Act
compliance requirements.
 Implemented on-line program for City recruitments to improve recruitment process including
efficiencies and communication. Developed job description database and integration to city
website.
Economic Development
 Gained City Council approval of a Downtown Strategic Plan, incorporating downtown visioning and
revitalization efforts
 Re-designed www.pismobeach.org websites, which is now optimized as a mobile-ready website
 Created a new “Guidelines, Application and Fee Schedule” for City wide Special Events
Community Awareness and Communication
 Certified Referendum and Initiative Petitions
 Police Department’s Commission on Accreditation for Law Enforcement Agencies, Inc. (CALEA)
Reaccreditation with Gold Standard
 Police Technology Upgrade systems completed
 Implemented a water conservation program to promote conservation efforts
Major Initiatives
The City Council approved the City’s FY 2015 adopted budget and Mid-Year Budget adjustments,
which will make significant investment in our community over the next year. The future is very bright for
the City of Pismo Beach, its residents, and its visitors. Throughout 2015, we will be making
investments in our community, in our team, and in our future.
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Investing in Our Community
The budget invests heavily in our community. Pismo Beach prides itself on its parks, facilities, paths of
travel, community appearance, and our preparedness in case of disaster. This budget continues to
invest in the community by:
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Investing over $3 million in infrastructure by continuing road paving and rehabilitation projects
throughout the community, planning for modernized storm drain systems to more efficiently move
water off of streets and improving sidewalks
Rehabilitating and improving several public facilities including the Pismo Beach Veterans’ Hall,
Shell Beach Veterans’ Hall and City Hall
Providing bluff protection and stabilization in key areas of Price Street and Shell Beach; to protect
water and sewer infrastructure
Enhancing emergency preparedness efforts by completing the installation of generators at the
City’s radio/communication sites and at City Hall and purchasing an above ground fuel tank to
ensure fuel is always available for the City’s fleet
Increasing funding for popular community events such as Pumpkins on the Pier, the Fourth of July
Celebration, and Holiday Harmony including the purchase of a new and brighter community holiday
tree
Repairing the Price Canyon Road slope failure
Investing in the complete design of the Shell Beach streetscape phase 1 project
Investing in Our Team
The budget also invests in the City team, the staff. The City Council acknowledges its hardworking,
experienced, and dedicated staff team, and I recommend several investments in our team including:
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Improving opportunities for employee education and training that result in more efficient, resourceful
and entrepreneurial operations
Enhancing the environment and culture at City facilities to improve employee morale, development,
and creativity
Implementing new technology in police vehicles and throughout the City organization that allows
quicker access to information, provides greater efficiency in service to the public and develops a
more secure and reliable computing environment
Continuing vehicle replacement of mission critical public safety and public works vehicles to ensure
the City’s fleet is in good working order, maintenance costs remain low, and that there is pride in the
appearance of the City’s fleet
Maintaining competitive salaries and benefits while at the same time ensuring that the City’s
pension and benefit programs are sustainable into the future
Investing in Our Future
Finally, we are not only investing in the people and assets we enjoy today, but we will also make
strategic investments into our future. The budget invests in the future by:
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Increasing the General Fund Reserve by 1% each year over 5 years from 20% to 25%. This will
provide greater financial security and stability for the community should an economic crisis or
disaster strike
Fully funding the 1% operating contingency in the budget allowing for operating flexibility and
opportunity during the year
Establishing a Risk Management Reserve at $50 thousand per year
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Establishing a Debt/Pension reduction Reserve at $1 million to reduce the City’s General Fund
ongoing debt service costs and/or pension contributions.
Implementing a comprehensive downtown revitalization and planning process looking at land use,
parking, circulation, retail uses, streetscape and public amenities aimed at transforming downtown
into the cultural, social and economic center of the community
Involving the public in a planning process to discuss ways that the former City Hall building on Bello
Street can be used and identifying what elements are historically significant to the community
Revising the General Plan Circulation Element to ensure efficient access throughout the community
via a variety of transportation types
Rebuilding the Bello Street Bridge to connect the north and south sections of the community. Once
completed, the bridge will provide better access to and from the junior high, baseball fields and will
provide route alternatives in the event of evacuation either to or from the coastal area
Giving the opportunity for the community to consider renewing the Half-Cent Sales Tax measure.
100% of funds raised by the measure have been reinvested into the community’s roads, sidewalks
and storm drains. In November 2014, the tax measure was approved by an overwhelming majority
for another 12 years.
AWARD AND ACKNOWLEDGMENTS
Award for Excellence in Financial Reporting
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Pismo Beach for its comprehensive annual financial
report (CAFR) for the fiscal year ended June 30, 2013. In order to receive this award, the City
published an easily readable and efficiently organized CAFR. This report satisfies both U.S. generally
accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid
for a one-year period only. We believe that our current CAFR continues to meet the Certificate of
Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility
for another certificate.
Acknowledgments
The preparation of this report would not have been possible without the efficient and dedicated services
of the entire staff of the Administrative Services Department. We would like to express our appreciation
to all members of the departments who assisted and contributed to the preparation of this report.
Credit must also be given to the Mayor and the Members of the City Council, and the City Manager for
their continued support for maintaining the highest standards of professionalism in the management of
the City of Pismo Beach’s financial affairs.
Respectfully submitted,
James R. Lewis
City Manager
Nadia Feeser
Administrative Services Director
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City Council
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
Shelly Higginbotham
Edward Waage
Erik Howell
Mary Ann Reiss
Kris Vardas
Executive Management Team
City Manager
City Clerk
Community Development Director
Fire Battalion Chief
Police Chief
Public Works Director/City Engineer
Conference & Visitors Bureau
Human Resources
James Lewis
Elaina Cano
Nadia Feeser
Jon Biggs
Paul Lee
Jake Miller
Benjamin Fine
Suzen Brasile
Debra Garcia
Year End Audit / Financial Statement Team
Finance Manager
Accountant
Accounting Technician
Office Assistant II
Nadia Feeser
Susan West-Jones
Vanessa Garris
Kristin Bennet
Marla Catalano
Jana Etteddgue
Karin Roda
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City of Pismo Beach
Organizational Chart
Citizens
City Council
Planning Commission
Conference & Visitors
Bureau Board
Chapman Estate Advisory
Commission
City
Manager
Parks, Rec &
Beautification
Commission
Parking Advisory
Committee
City
Attorney
Human
Resources
Conference &
Visitors Bureau
City Manager, HR,
Council Support
City Clerk
Records
Management
Public
Information
Administrative
Services
Finance/
Accounting
Utility
Billing
Information
Technology
Public Works
Department
Community
Development
Engineering
Maintenance/
Operations
Street/Building
Maintenance
Park
Maintenance
Fleet
Maintenance
Water
Operations
Wastewater
Operations
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Fire
Police
Planning
Emergency
Response
Operations
Building
Fire
Prevention
Support
Recreation
Parking
Lifeguards
Junior
Lifegaurds
Weed
Abatement
Financial Section
The Honorable Mayor and Members of the City Council
Pismo Beach, California
Page 2
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 as of June 30, 2014, and the respective changes in financial
position and, where applicable, cash flows thereof for the year then 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 pages 4 through 13, the budgetary information on pages 58 through 60, the
Schedule of Funding Progress for Other Post Employment Benefits on page 61, and the Schedule of Employer
Contributions for Other Post Employment Benefits on page 62 be presented to supplement the basic financial
statements. Such information, although not a basic part of the financial statements, is required by the
Government 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 inquiries 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’s basic financial statements. The introductory section, combining and individual fund
statements and schedules on pages 67 through 95, the other schedules on pages 96 through 99 and the
statistical section are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual fund statements and schedules and the other schedules 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 statement. 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 to 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
combining and individual fund statements and schedules and the other schedules are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
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MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of the City of Pismo Beach's comprehensive annual financial report presents a narrative
overview and analysis of the City’s financial activities during the fiscal year that ended on June 30, 2014.
Please read it in conjunction with the City's transmittal letter (in the Introductory Section) and the audited
financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
The following outlines financial highlights for the year:
• The City's total net position increased by about $5.01 million over the course of this year’s operations
after conducting all City operations and programs. The assets of the City exceeded its liabilities by about
$94.71 million at the end of the 2014 fiscal year. Of that amount, $30.21 million (the unrestricted net
position) may be used to meet the City's ongoing obligations and operating expenses for the next fiscal
year.
• Overall City-wide revenues from all governmental and business-type activities increased by about $3.58
million compared to the 2013 fiscal year. The increase in revenues was primarily in charges for services
of $2.36 million and Transient Occupancy Taxes of $710,000.
• Transient Occupancy Tax Revenues increased by $710,000 in 2014.
• The City's total expense of all programs in the 2014 fiscal year increased by about $80,000 compared to
the 2013 fiscal year.
• The General Fund reported a fund balance of $14.51 million at the end of the 2014 fiscal year; a 36.4
percent increase over the end of the 2013 fiscal year.
• The City also ended the 2014 fiscal year with $12.12 million reported in the proprietary enterprise funds
(the amount of the net position available for use both restricted and unrestricted but excluding the net
investment in capital assets).
• The City's other nonmajor governmental funds ended the 2014 fiscal year with about $4.53 million
available for special purposes.
OVERVIEW OF THE FINANCIAL STATEMENTS
The basic financial statements are comprised of three components: Government-wide Financial
Statements, Fund Financial Statements, and Notes to the Financial Statements. This report also contains
required supplementary information and a section containing combining statements and schedules for
nonmajor governmental funds and proprietary funds.
Government-wide Financial Statements provide both long-term and short-term information about the
City’s overall financial status.
Fund Financial Statements focus on individual parts of the City government, reporting the City's
operations in more detail than the government-wide statements.
•
The governmental funds statements tell how general government services like public safety, general
government, community services, public works, and streets were financed in the short-term as well as
what remains for future spending.
•
Proprietary fund statements offer short and long-term financial information about the activities the
government operates like businesses, such as the City's water, wastewater, parking, pier and transit
systems.
Notes to the Financial Statements explain some of the information in the financial statements and provide
more detailed data.
4
Figure A-1 summarizes the major features of the City's financial statements, including the portion of the
City government they cover and the types of information they contain. The remainder of this overview
section of management’s discussion and analysis explains the structure and contents of each of the
statements.
Figure A-1
Major Features of City of Pismo Beach's Government-Wide and Fund Financial Statements
Fund Statements
Government-Wide
Statements
Governmental Funds
Scope
Entire City government
Required financial
statements
Statement of net position Balance sheet
Statement of activities
The activities of the City
that are not proprietary or
fiduciary, such as police,
fire, streets, general
government, and
community services
Proprietary Funds
Activities the City
operates similar to
private businesses: the
water, wastewater,
parking, pier and transit
systems
Statement of net position
Statement of revenues, Statement of revenues
expenditures, and
expenses, and changes
changes in fund balance in net position
Statement of cash flows
Accounting basis and
measurement focus
Accrual accounting and
Modified accrual
Accrual accounting and
economic resources focus accounting and current economic resources
financial resources focus focus
Type of asset/liability
information
All assets and liabilities,
both financial and capital,
and short-term and longterm
Only assets expected to
be used up and liabilities
that come due during
the year or soon
thereafter; no capital
assets included
All assets and liabilities,
both financial and capital,
and short-term and longterm
Type of inflow/outflow All revenues and
information
expenses during year,
regardless of when cash
is received or paid
Revenues for which cash
is received during or
soon after the end of the
year; expenditures when
goods or services have
been received and
payment is due during
the year or soon
thereafter
All revenues and
expenses during year,
regardless of when cash
is received or paid
5
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide statements report information about the City as a whole using accounting methods
similar to those used by private-sector companies.
The two government-wide statements report the City's net position and how it has changed.
The Statement of Net Position presents information on all the City's assets and liabilities. The Net Position
– the difference between the City's assets and liabilities – is one way to measure the City's financial health,
or position. Over time, increases or decreases in the City's net position are an indicator of whether its
financial health is improving or deteriorating, respectively.
The Statement of Activities includes all of the current year’s revenues and expenses regardless of when
cash is received or paid. This shows how the government’s net assets changed during the most recent
fiscal year.
Both government-wide financial statements of the City are reported in two categories:
• Governmental activities – All of the City’s basic services are included here, such as general government,
police, fire, streets, public works, and community services. Property taxes, sales taxes, transient
occupancy taxes, special and other taxes, user charges and fees and state, local and federal grants help
to finance these activities.
• Business-Type activities - The City charges fees to customers to help cover the costs of certain services.
The City's water, wastewater, parking, pier and transit enterprises are reported here.
FUND FINANCIAL STATEMENTS
The fund financial statements provide more detailed information about the City's most significant funds –
not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources
of funding and spending for particular purposes.
• Some funds are required by State law such as the State Gas Tax Fund and Transportation Development
Act / Local Transportation and Transit Funds.
• The City Council establishes other funds to control and manage money for particular purposes such as
the Capital Project Fund.
• Some funds are maintained to demonstrate that the City is properly using certain specific fees for their
intended purpose such as the Impact Fee Funds.
• Other funds are maintained for similar purposes but in addition demonstrate the City's ability to repay its
long-term debt obligations such as the revenue bonds.
The City has two kinds of funds:
• Governmental funds – The City's basic services are included in governmental funds, which focus on (1)
how cash and other financial assets that can readily be converted to cash flow in and out and (2) the
balances left at year-end that are available for spending. Consequently, the governmental funds
statements provide a detailed short-term view that helps you in determining whether there are more or
fewer financial resources that can be spent in the near future to finance the City's programs. Because
this information does not encompass the additional long-term focus of the government-wide statements,
we provide additional information on the subsequent page that explains the relationship (or differences)
between them.
6
• Proprietary funds - The City maintains two different types of proprietary funds. Enterprise funds are used
to report the same functions reported as business-type activities in the government-wide financial
statements; the City's water, wastewater, parking, pier and transit operations. Internal service funds are
an accounting device used to accumulate and allocate costs internally among the City’s various functions.
The City uses an internal service fund to account for its fleet of vehicles. Because these services
predominately benefit governmental rather than business-type functions, they have been included within
the governmental activities in the government-wide financial statements. Proprietary funds provide the
same type of information as the government-wide statements, only in more detail. The proprietary fund
statements provide separate information for the City's water and wastewater operations, both of which
are considered to be major funds of the City. The vehicle internal service fund is presented in a separate
column alongside the totals for the City's proprietary enterprise funds.
FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Net Position. The City's combined net position increased about $5.01 million between fiscal years 2013
and 2014. (See Table A-1)
Table A-1
City of Pismo Beach's Net Position
(in millions of dollars)
Governmental Activities
2014
Current and other assets
Capital assets
Total assets
2013
$27.14
43.85
70.99
$19.91
47.38
67.29
Deferred Outflows
Long-term obligations
Other liabilities
Total liabilities
Business-type
Activities
2014
2013
Total
Percentage
Change
Total
2014
2013
2013-2014
$12.74
31.64
44.38
$11.55
32.12
43.67
$39.88
75.49
115.37
$31.46
79.50
110.96
26.76%
-5.04%
3.97%
0.26
0.28
0.26
0.28
-7.14%
3.86
3.50
7.36
4.08
2.82
6.90
12.26
1.31
13.57
13.01
1.63
14.64
16.12
4.81
20.93
17.09
4.45
21.54
-5.68%
8.09%
-2.83%
40.20
4.86
18.57
$63.63
40.53
3.16
16.71
$60.40
18.96
0.48
11.64
31.08
12.66
0.98
15.66
$29.30
59.16
5.34
30.21
$94.71
53.19
4.14
32.37
89.70
11.22%
28.99%
-6.67%
5.59%
Net position
Investment in capital assets
Restricted
Unrestricted
Total net position
Net position of the City's governmental and business-type activities increased 5.59 percent to $94.71
million. About 62 percent of the net assets of the City are represented by the City's net investment in its
capital assets such as buildings, land, equipment, street systems, and facilities. The remaining 38 percent
is essentially represented by cash, investments, and receivables. About 77 percent of the City's total
liabilities are represented by long-term obligations including revenue bonds, state revolving fund loans in
the Wastewater Fund, employee compensated absences, and self-insured portions of claims.
7
Changes in Net Position
Revenues: The City's 2014 total revenues of about $32.70 million were about $3.58 million higher than
revenues in 2013, a 12.29 percent increase. (See Table A-2.) About 58 percent of the City's revenue comes
from some type of taxes including property, sales, transient occupancy taxes (the hotel tax) and other taxes.
The rest comes from fees charged for services, state, local and federal aid, and contributions.
Expenses: The total cost of all programs and services in 2014 was about $27.69 million and included a
wide range of services such as police and fire protection, streets, public works, general administration,
community services, water, wastewater and the pier operations.
Table A-2
Changes in the City of Pismo Beach's Net Position
Governmental
Activities
2014
2013
Business-type
Activities
2014
2013
Total
Percentage
Change
Total
2013-2014
2014
2013
$12.74
0.65
0.30
7.99
10.88
0.14
$10.38
0.76
0.25
7.28
10.31
0.14
22.74%
-14.47%
20.00%
Revenues
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Transient occupancy taxes
Property, sales and other taxes
Other
Total revenues
Expenses
General government
Public safety
Streets
Public works
Community services
Water
Wastewater
Other
$8.34
$7.56
$4.40
0.65
0.30
$2.82
0.76
0.25
7.99
9.16
0.14
7.28
8.77
0.14
1.72
1.54
22.64
20.02
10.06
9.10
32.70
29.12
12.29%
5.86
6.97
2.67
1.87
1.98
5.96
7.02
3.06
1.86
1.80
4.29
2.99
0.46
5.86
6.97
2.67
1.87
1.98
4.44
3.33
0.57
5.96
7.02
3.06
1.86
1.80
4.29
2.99
0.63
-1.68%
-0.71%
-12.75%
0.54%
10.00%
3.50%
11.37%
-9.52%
9.75%
5.53%
0.00%
0.15
0.17
4.44
3.33
0.42
$19.50
$19.87
$8.19
$7.74
$27.69
$27.61
0.29%
Excess (deficiency) before transfers/other
Transfers
Prior year restatement
3.14
0.09
0.15
0.02
0.08
1.87
(0.09)
1.36
(0.02)
1.00
5.01
-
1.51
1.08
231.79%
0.00%
-100.00%
Increase (decrease) in net position
3.23
$0.25
$1.78
$2.34
$5.01
2.59
93.44%
Total expenses
8
The sources of the City's major types of revenue and the areas where such resources are used is shown
below in summary graphic form:
Figure A-2
City’s Major Revenue Sources and Uses
Sources
Other Taxes,
6.21%
Charges for
Services,
13.40%
Grants, 2.92%
Other
Revenues,
2.38%
Enterprise
Funds,
25.44%
Sales and Use
Tax, 12.51%
Transient
Occupancy
Tax, 24.36%
Property
Related
Taxes,
12.78%
Community
Services,
All Other, 7.21%
7.35%
Uses
Water and
Sewer,
29.76%
Streets, 9.70%
General
Government,
20.66%
Police and
Fire, 25.33%
Revenues from all governmental activities in the 2014 fiscal year increased by about $2.62 million
compared to the 2013 fiscal year. The primary increase was from charges for services at $1.58 million.
Transient occupancy taxes increased by $710,000 from the previous year. Property, sales, and other taxes
also increased by $391,000 from 2013.
As the above pie chart shows, the City's primary source of revenue comes from some kind of tax. About 58
percent of all City revenues in Governmental Activities come from taxes such as property, sales, transient
occupancy and other taxes.
9
Because the City of Pismo Beach is a tourist community, about 35 percent of all governmental activities
revenues come from transient occupancy taxes (the local hotel tax). Local hotel tax revenues came in
higher than 2013 by 9.75 percent or $710,000. Sales tax revenues, including the Measure “C” Half-Cent
Transactions Sales and Use Tax revenues, came in 5.08 percent higher than 2013. Sales tax revenues
excluding the Measure “C” revenues, came in 6.66 percent higher than 2013. Measure “C” revenues came
in 1.98 percent higher by $26,000 compared to 2013.
The majority of the City's governmental-activities operating expenses are incurred to provide police
protection and fire protection services with these two departments accounting for about 25 percent of the
City's total 2014 governmental operating expenses. Another 10 percent of the City's 2014 governmental
activities operating expenses were incurred to provide street improvements throughout Pismo Beach. A
variety of cultural and recreation services including Planning making up 7 percent of operating expenses,
and the remaining 58 percent was spent on general administration, and public works services.
When all operations were concluded, the governmental activities function generated a $3.23 million
increase in net position for 2014 compared to a $250,000 increase in 2013.
Table A-3 presents the cost of each of the City's governmental activities largest programs – administration
or general government, public safety, community services, and streets.
Table A-3
Cost of City of Pismo Beach's Programs
General Government
Public Safety
Community services
Streets
Public Works
All other
Total
Percentage
Total Cost of
Change
Services
2014
2013
2013-2014
$5.86
$5.96
-1.68%
6.97
7.02
-0.71%
1.98
1.80
10.00%
2.67
3.06
-12.75%
1.87
1.86
0.54%
0.15
0.17
-11.76%
$19.50 $19.87
-1.86%
The cost of all programs this year was $19.50 million, compared to $19.87 million in fiscal 2013.
While users and contributors funded about $5.35 million of the costs of the City's governmental activity
programs through related program revenues, the City still had to make up the short fall from general
revenues such as taxes and this short fall was about $14.15 million. Major sources of program revenues
were:
•
•
Those who directly benefited from or used the programs ($4.4 million), or
Other governments and organizations that subsidized certain programs with grants and contributions
(about $1 million).
The City paid for the $14.15 million “public benefit” portion out of the $17.4 million in general revenues such
as property taxes, transient occupancy taxes, sales taxes, and with other tax revenues and investment
earnings.
Overall, 2014 total cost of services is showing a decrease of 1.86 percent compared to 2013. Expenses
decreased primarily in the General Government, and Streets, and other functions categories. Expenses
increased in Community Services and Public Works categories.
10
Business-Type Activities
The City's business-type activities (primarily water and wastewater) were responsible for about $1.78 million
of the total $5.01 million increase in net position of the City in 2014. Revenues in total increased in 2014
by $950,000. Revenues for basic water services charges increased by 13.3 percent or $462,000 in 2014.
Revenues for basic sewer services charges increased by 7.7 percent or $276,000 in 2014. Parking Kiosk
revenues increased by 6.9 percent or $35,900 in 2014.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As the City completed the year, its governmental funds reported a combined fund balance of $19.69 million,
about $5.53 million higher than the last fiscal year. The City's General Fund operations generated about
$4.36 million more in revenues than was spent on governmental activities. From this excess, the City
transferred a total of $780,000 out of the General Fund and into other funds. About $182,500 was
transferred out to capital projects, $300,600 of those transfers went to the debt service funds for the revenue
bonds, another $271,000 was transferred to the vehicle replacement internal service fund, and another
$21,400 was transferred out to the Pier fund. At year end, the City's General Fund had a fund balance of
about $14.51 million, an increase of $3.88 million from the prior year of $10.63 million. Of the $14.51 million,
about $3.54 million was designated for unanticipated emergencies. The increase in fund balance was the
result of higher revenues in transient occupancy revenues of $710,000, license and permits of $541,000,
sales tax revenues of $198,000, and decreased expenditures of $576,000 and transfers for capital projects
of $2.02 million compared to the prior year.
In addition, the City's non-major governmental funds ended the 2014 fiscal year with a combined fund
balance of $4.53 million. Of this $4.53 million, $209,000 can be used for debt service, $1.54 million in
Special Revenue Funds, and the remaining $2.86 million is set aside for impact fee and capital projects.
The Debt Service Funds consist of Pismo Beach Public Financing Authority and Completed Assessment
District Funds. The Special Revenue Funds consist of the State Gas Tax Fund, the Local Transportation
Street Fund, the Local Business Improvement Fund, the PEG Fund (Public Education Government Access),
the Noncapital Grant Fund, and the new Chapman Estate Fund. The Capital Project Funds consist of the
primarily of the Capital Projects Fund where the City tracks all revenues and expenditures for Governmental
Fund capital projects, the Park Development Fund, the Public Facilities Fund, the Circulation Improvement
Fund, the Impact Fees Fund, Developer Impact Fees Fund, and Underground Utility Fund.
General Fund Budgetary Highlights
Over the course of the year, the City Council revised the City budget several times. These budget
amendments fall into three categories: changes made during the year for unanticipated revenues and costs;
increases in appropriations to prevent budget overruns; and carry over budgets for capital projects. Even
with these adjustments, actual General Fund net expenditures were $3.77 million less than final budget
amounts. Budget amendments that occurred in revenues during the year include an increase of $640,000
in General Fund revenues of various categories. The more significant budget changes for expenses were
for carryovers for capital projects of $1.2 million.
General Fund revenues that came in higher than original estimates include transient occupancy tax by
$552,000, sales tax by $357,000 and licenses and permits by $750,000. The increase in tourism and
developer related revenues were the direct result of the economy coming out of the recession. Revenues
that came in lower than budget estimates include interest revenues as a result of interest rates continuing
to decrease as a result of the Federal bond buying policy. The primary General Fund expenditures that
exceeded budget estimates were in legal, park maintenance and engineering. Legal expense exceeded
budget due to charges for ongoing legal matters. The Park Maintenance exceeded budget estimates as a
result of changes in salary and benefit distributions that were outside of the two-year budget process and
not revised during the year, utility costs, and refuse disposal costs. The Engineering division exceeded
budget estimates as a result of developer contracts for outside inspection and engineering services for
$176,000, which are covered by fees paid by developers. The Engineering division comes in under budget
by $53,000 if you remove the developer payments.
11
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2014, the City had invested $75.48 million in a broad range of capital assets, including land,
vehicles, equipment, the City Pier, water and wastewater system, streets, and other capital assets. (See
Table A-4.) This amount represents a net change (including additions and deductions) of about $2.16 million
or a 2.78 percent decrease from the previous year.
Table A-4
Pismo Beach's Capital Assets
Business-type
Activities
Governmental
Activities
Total
Percentage
Change
Total
(net of depreciation, in
millions of dollars)
2014
Land and right of ways
Construction in progress
Buildings
Capacity Rights
Machinery and equipment
Vehicles
Improvements
Tanks, wells, and system
Pipelines\collection system
Pier
Infrastructure-streets
Accumulated depreciation
Total
2013
2014
$12.03
0.65
5.53
$12.03
2.29
5.53
2.42
4.43
9.67
2.22
3.83
9.67
2013
$0.37
0.80
0.33
1.04
2.22
$0.37
4.31
0.33
1.04
2.09
11.03
32.11
1.92
7.05
32.11
1.92
2014
45.80
(36.69)
43.83
(33.87)
(18.18)
(17.11)
$12.40
1.45
5.86
1.04
4.64
4.43
9.67
11.03
32.11
1.92
45.80
(54.87)
$43.84
$45.53
$31.64
$32.11
$75.48
2013
2013-2014
$12.40
6.60
5.86
1.04
4.31
3.83
9.67
7.05
32.11
1.92
43.83
(50.98)
0.00%
-78.03%
0.00%
0.00%
7.66%
15.67%
0.00%
56.45%
0.00%
0.00%
4.49%
7.63%
$77.64
-2.78%
This year’s major capital asset changes included:
The significant changes in fiscal 2014 were:
•
Completed and capitalized the Pismo Heights Water Project totaling $3.79 million
•
Completed and capitalized the 2012-2013 City-Wide Pavement Project totaling $1.96 million
Additional information on capital assets of the City can be found starting on page 41 of the notes to the
12
Long-Term Debt
At the end of fiscal 2014, the City had $5.35 million in revenue bonds that were issued in 2012 by the Public
Financing Authority to advance refund the 2004 revenue bonds, Series A. The obligation bears interest at
rates of 2 to 5 percent and is payable in semi-annual installments each June and December through 2033.
The 2012 revenue bonds are being retired from Wastewater Enterprise revenues.
At the end of fiscal 2014, the City had $3.65 million in revenue bonds issued in 2007. The 2007 revenue
bonds are being retired from General Fund revenues.
The State Revolving Loans had outstanding balances of $7.21 million, which included $6.52 million for the
Wastewater Treatment Loan, $144,214 for the Park/Cypress Interceptor Loan, and $546,493 for the Pismo
Oaks Lift Station Loan. The outstanding debt for the State Revolving Loans was reduced by $526,144
during the fiscal year. The loans are being retired from Wastewater Fund revenues. Additional information
on the City's long-term debt can be found starting on page 43 of the notes to the financial statements.
Under previous arrangements, the City was self-insured for the first $300,000 for each workers
compensation claim and $50,000 for each general liability claim, the statement of net position also shows
a liability of about $199,209 for estimated claim obligations. The City's General Fund pays all insurance
related costs.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
For the 2015 fiscal year, the following list of items will affect the General Fund:
•
General Fund Reserve will be increased over five years to 25 percent of operating budget expenditures.
•
Continue to fund the Risk Management Reserve contributing $50,000 per year from the General Fund.
•
Establish reserves for Building Depreciation and Pension/Debt Reduction at $0.5 million and $1 million,
respectively from the General Fund.
•
In 2015, all Impact Fees will be adjusted according to various indices for the designated month and
area as indicated by Council Ordinance or Resolution.
•
Completion of the User Fee Study. All User Fees are proposed to be adjusted according to the new
study that is proposed to be adopted by Council Resolution.
•
In 2015, the City will continue to fund the CalPERS Retiree Benefit Trust and is estimated to contribute
$234,000.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors
with a general overview of the City's finances and to demonstrate the City's accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Administrative Services Department, City of Pismo Beach, 760 Mattie Road, Pismo Beach, California,
93449, 805-773-4655.
13
City of Pismo Beach
Statement of Net Position
June 30, 2014
Governmental
Activities
Business-Type
Activities
$ 23,886,663
1,289,447
226,557
331,456
5,418
131,011
25,870,552
$ 10,054,607
Total
Assets
Current assets:
Cash and investments
Taxes receivable
Accounts receivable
Due from other governments
Accrued interest receivable
Prepayments
Total current assets
Noncurrent assets:
Deposits
Note and interest receivable
Net other post employment benefit asset
Capital assets not being depreciated
Capital assets being depreciated, net
Total noncurrent assets
Total assets
3,563
1,397,576
12,744,733
$ 33,941,270
1,289,447
1,515,544
331,456
8,981
1,528,587
38,615,285
14,612
1,214,647
44,000
12,678,020
31,169,129
45,120,408
1,172,138
30,471,678
31,643,816
14,612
1,214,647
44,000
13,850,158
61,640,807
76,764,224
70,990,960
44,388,549
115,379,509
261,715
261,715
1,288,987
Deferred Outflows of Resources
Unamortized loss on refunding
The accompanying notes are an integral part of these financial statements.
14
City of Pismo Beach
Statement of Net Position, Continued
June 30, 2014
Page 2
Governmental
Activities
Business-Type
Activities
Total
Liabilities
Current liabilities:
Accounts payable
Accrued liabilities
Claims
Compensated absences
Deposits
Accrued interest payable
Unearned revenue
Bonds and loans
Total current liabilities
$
Noncurrent liabilities:
Claims, judgments and fines
Bonds and loans
Total noncurrent liabilities
Total liabilities
858,851
1,056,465
60,000
11,000
598,966
12,244
606,412
300,000
3,503,938
$
332,700
75,533
21,529
94,381
61,778
725,642
1,311,563
41,793
$
1,191,551
1,131,998
60,000
32,529
693,347
74,022
606,412
1,025,642
4,815,501
371,864
139,209
3,350,000
3,861,073
12,216,759
12,258,552
413,657
139,209
15,566,759
16,119,625
7,365,011
13,570,115
20,935,126
40,197,149
18,963,130
59,160,279
Net Position
Net investment in capital assets
Restricted for:
Debt service
Capital projects
Affordable housing
Community development
Public safety
Streets
Unrestricted
Total net position
208,989
2,409,193
660,263
632,074
31,541
919,826
18,566,914
11,634,062
208,989
2,892,150
660,263
632,074
31,541
919,826
30,200,976
$ 63,625,949
$ 31,080,149
$ 94,706,098
15
482,957
City of Pismo Beach
Statement of Activities
Functions/Programs
Governmental activities:
General government
Public safety:
Police protection
Fire protection
Streets
Community services
Public works
Redevelopment and housing
Interest on long-term debt
Total governmental activities
Business-type activities:
Water
Wastewater
Transit
Pier
Parking
Total business-type activities
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions Contributions
Expenses
$ 5,860,017
$ 1,762,469
$
4,949,673
2,020,895
2,668,703
1,983,046
1,870,369
500
151,162
19,504,365
134,343
48,104
33,950
838,828
1,511,764
66,410
312,355
206,243
303,229
4,395,868
653,736
303,229
4,438,880
3,332,885
10,762
80,406
326,696
8,189,629
3,920,594
3,848,743
8,103
14,105
551,567
8,343,112
General revenues and transfers:
Property taxes
Sales taxes
Special water taxes
Other taxes
Franchise fees
Unrestricted investment earnings
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
16
30,126
$
-
105,012
-
-
Net Revenues (Expenses) and
Governmental
Activities
Business-type
Activities
$
$
(4,067,422)
(4,710,318)
(1,972,791)
(2,019,169)
(937,975)
(358,605)
65,910
(151,162)
(14,151,532)
-
Total
$
-
(518,286)
515,858
(2,659)
(66,301)
224,871
153,483
4,193,186
4,104,284
(4,067,422)
(4,710,318)
(1,972,791)
(2,019,169)
(937,975)
(358,605)
65,910
(151,162)
(14,151,532)
(518,286)
515,858
(2,659)
(66,301)
224,871
153,483
7,988,237
317,875
545,823
142,180
93,422
17,385,007
(93,422)
1,624,199
4,193,186
4,104,284
1,717,621
7,988,237
317,875
545,823
142,180
19,009,206
3,233,475
1,777,682
5,011,157
60,392,474
29,302,467
89,694,941
$ 63,625,949
$ 31,080,149
$ 94,706,098
1,717,621
17
City of Pismo Beach
Balance Sheet – Governmental Funds
June 30, 2014
General
Housing in
Lieu
Other
Nonmajor
Governmental
Funds
$ 1,190,228
$
4,511,103
27,871
122,240
177,802
1,631
35,000
$ 20,800,134
1,289,447
224,815
331,456
133,061
131,011
1,086,826
$
4,875,647
$ 23,996,750
$
172,339
80,556
97,176
Total
Governmental
Funds
Assets
Taxes receivable
Accounts receivable
Prepayments
Note receivable
Total assets
$ 15,098,803
1,261,576
102,575
153,654
3,609
96,011
127,821
1,086,826
$ 16,716,228
$ 2,404,875
Liabilities, Deferred Inflows of Resources and Fund Balance
Liabilities:
Accounts payable
Accrued liabilities
Deposits
Unearned revenue
Total liabilities
$
472,672
967,314
501,790
267,000
2,208,776
Deferred inflows of resources:
Unavailable revenue, note receivable
Fund balance:
Nonspendable
Restricted for:
Future capital project funding
Streets and highways
Affordable housing
Community business development
Park development
Public safety
Debt service
Committed for:
Debt service
General fund reserve
Capital project funding
Risk management reserve
Unassigned
Total fund balance
Total liabilities, deferred inflows of
resources and fund balance
$
190,553
339,412
529,965
350,071
1,214,647
123,805
1,678,050
919,826
245,094
1,678,050
919,826
245,094
660,263
386,980
731,143
31,541
208,989
386,980
731,143
31,541
208,989
1,000,000
3,548,569
4,994,180
50,000
4,825,898
801
288,152
$ 16,716,228
$ 2,404,875
18
3,088,812
35,000
660,263
660,263
835,564
1,047,870
598,966
606,412
1,214,647
88,805
14,507,452
$
$
1,000,000
3,549,370
5,282,332
50,000
4,825,898
4,525,576
19,693,291
4,875,647
$ 23,996,750
City of Pismo Beach
Reconciliation of the Balance Sheet of Governmental Funds
to the Government-wide Statement of Net Position
June 30, 2014
Total fund balance - governmental funds
$ 19,693,291
Amounts reported for governmental activities in the statement of net position are different
because:
Capital assets are not current financial resources and, therefore, are not reported in the
governmental funds. In the statement of net position, all assets are reported, including
capital assets and accumulated depreciation. Net capital assets relating to governmental
activities consisted of:
Capital assets at estimated historical cost
Accumulated depreciation
$
75,956,214
(33,882,094)
42,074,120
Deposits with insurance pools used in governmental activities are not current financial
resources and, therefore, are not reported in the governmental funds. In the statement of
net position, these deposits are reported as noncurrent assets.
14,612
Long-term receivables used in governmental activities are not current financial resources
and, therefore, are reported as deferred inflows of resources in the governmental funds.
In the statement of net position, long-term receivables are reported as noncurrent assets.
1,214,647
Net other post employment benefit asset is not a current financial resource and,
therefore, is not reported in the governmental funds. In the statement of net position, net
other post employment benefit asset is reported as a noncurrent asset.
44,000
Interest on long-term debt is not recognized in the governmental funds until the period in
which it matures and is paid. In the government-wide statements, it is recognized in the
period that it is incurred. The liability for unmatured interest payable at year-end was:
(12,244)
19
City of Pismo Beach
Reconciliation of the Balance Sheet of Governmental Funds
to the Government-wide Statement of Net Position, Continued
June 30, 2014
Page 2
Long-term liabilities are not current liabilities and, therefore, are not reported in the
governmental funds. In the statement of net position, all liabilities, including long-term
liabilities, are reported. Long-term liabilities relating to governmental activities consisted
of:
Refunding revenue bonds
Claims
$
(3,650,000)
(375,913)
(199,209)
$ (4,225,122)
Internal service funds are used to conduct certain activates for which costs are charged
to other funds on a full cost-recovery basis. Because the internal service fund is
presumed to benefit governmental activities, assets and liabilities of the internal service
fund are reported with governmental activities in the statement of net position. Net
position for the internal service fund was:
Total net position - governmental activities
4,822,645
$ 63,625,949
20
City of Pismo Beach
Statement of Revenues, Expenditures, and
Changes in Fund Balance – Governmental Funds
General
Revenues:
Property taxes
Sales taxes
Other taxes
Licenses and permits
Fines and forfeits
Subventions and grants
Interest and rents
Special assessments
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Highways and streets
Community services
Public works
Housing
Debt service:
Principal
Interest
Capital outlay
Total expenditures
Excess of revenues over
expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total other financing sources (uses)
$ 4,193,186
4,104,284
7,988,237
850,072
1,354,904
67,523
188,760
279,274
239,813
Housing in
Lieu
$
Other
Governmental
Funds
Total
Governmental
Funds
$
$
738,684
7,445
862,002
798,664
197,125
2,603,920
2,131
66,410
646,035
19,912,088
570,409
638,950
4,761,409
6,823,152
591,476
1,503,103
1,876,436
726,659
4,193,186
4,104,284
7,988,237
850,072
1,354,904
67,523
927,444
288,850
1,168,225
798,664
1,413,569
23,154,958
126,497
61,925
5,488,068
6,823,152
717,973
1,565,028
1,876,436
500
290,000
152,006
436,007
17,349,170
500
15,555,576
500
290,000
152,006
436,007
1,793,094
4,356,512
638,450
810,826
5,805,788
528,081
(318,297)
209,784
825,252
(1,098,589)
(273,337)
297,171
(780,292)
(483,121)
-
Net change in fund balance
3,873,391
638,450
1,020,610
5,532,451
Fund balance, beginning of year
10,634,061
21,813
3,504,966
14,160,840
4,525,576
$ 19,693,291
Fund balance, end of year
$ 14,507,452
$
660,263
21
$
City of Pismo Beach
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balance of Governmental Funds
to the Government-wide Statement of Activities
Total net change in fund balance - governmental funds
$ 5,532,451
Amounts reported for governmental activities in the statement of activities are different
because:
Changes in long-term receivables do not provide current financial resources and are not
reported in the governmental funds.
28,296
Changes in deposits with insurance pools do not provide current financial resources and
are not reported in the governmental funds.
(38,200)
Costs of capital assets are reported as expenditures in the governmental funds in the
period when the assets are acquired. In the statement of activities, costs of capital
assets are allocated over their estimated useful lives as depreciation expense. The
difference between capital outlay expenditures and depreciation expense for the year
was:
Capitalized expenditures for capital outlay - governmental funds
Depreciation expense
$
408,989
(2,560,670)
(2,151,681)
Losses on the sale of capital assets such as land do not use current financial resources
and are not reported in the governmental funds.
Changes in the net other post employment benefit (OPEB) asset due to plan changes
and changes in actuarial assumptions do not provide current financial resources and are
not reported in the governmental funds.
Interest on long-term debt is recognized as an expenditure in the governmental funds
when it is due. In the statement of activities, interest expense is recognized as the
interest accrues, regardless of when it is due. The difference between interest expense
paid and interest accrued was:
Repayments of long-term debt are recognized as expenditures in the governmental
funds. In the government-wide statements, repayments of long-term liabilities are
reported as reductions of liabilities. Expenditures for repayment of the principal portion of
long-term debt were:
22
21,000
846
290,000
City of Pismo Beach
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balance of Governmental Funds
to the Government-wide Statement of Activities, Continued
Page 2
Compensated absences are measured by the amounts paid during the period in the
governmental funds. In the statement of activities, compensated absences are measured
by the amounts earned. The differences between compensated absences paid and
compensated absences earned was:
$
(10,931)
Increases in actuarially determined claim liabilities for uninsured claims do not provide
current financial resources and are not reported in the governmental funds.
(37,721)
Repayments of notes receivable are recognized as revenue in the governmental funds
when they are received. In the government-wide statements, repayments of long-term
notes receivable are reported as reductions of assets. Revenue for repayment of the
principal portion of long-term notes receivable was:
(570,409)
Internal service funds are used to conduct certain activities for which costs are charged to
other funds on a full cost-recovery basis. Because the internal service fund is presumed
to benefit governmental activities, internal service activities are reported as governmental
in the statement of activities. The net increase in the internal service fund was:
169,824
Total change in net position - governmental activities
$
23
3,233,475
City of Pismo Beach
Statement of Fund Net Position – Proprietary Funds
June 30, 2014
Enterprise Funds
Water
Assets
Current assets:
Accounts receivable
Prepayments
Noncurrent assets:
Capital assets:
Land
Improvements and buildings
Motor vehicles
Distribution and collection systems
Parking equipment and metering systems
Pier
Capacity rights
Total capital assets
Less accumulated depreciation
Capital assets, net of
accumulated depreciation
Total noncurrent assets
Total assets
$
Other
Enterprise
Funds
Wastewater
4,241,114
672,760
1,240
1,394,339
6,309,453
$
4,004,232
589,273
1,606
125
4,595,236
129,590
262,771
7,767,442
209,759
536,593
7,825,190
29,719,653
$
1,809,261
26,954
717
3,112
1,840,044
33,425
Totals
$
10,054,607
1,288,987
3,563
1,397,576
12,744,733
Governmental
Activities Internal Service
Funds
$
3,086,529
1,742
178
3,088,449
208,853
16,193,846
(6,470,370)
30,466,005
(9,607,068)
2,334,016
(1,272,613)
372,774
799,364
7,767,442
37,544,843
158,038
2,142,553
208,853
48,993,867
(17,350,051)
9,723,476
9,723,476
20,858,937
20,858,937
1,061,403
1,061,403
31,643,816
31,643,816
1,773,029
1,773,029
16,032,929
25,454,173
2,901,447
44,388,549
4,861,478
158,038
2,142,553
Deferred Outflows of Resources
Unamortized loss on refunding
261,715
24
261,715
150,312
4,428,367
4,578,679
(2,805,650)
City of Pismo Beach
Statement of Fund Net Position – Proprietary Funds, Continued
June 30, 2014
Page 2
Enterprise Funds
Water
Liabilities
Accounts payable
Accrued liabilities
Deposits
Accrued interest payable
Bonds and loans
$
101,016
27,264
5,000
93,503
$
Net Position
Restricted for capital improvements
Unrestricted
33,672
16,413
25,380
6,676,839
5,539,920
12,242,139
-
41,793
6,676,839
5,539,920
12,258,552
4,271
243,196
13,293,247
33,672
13,570,115
38,833
9,723,476
8,178,251
482,957
3,761,433
1,061,403
18,963,130
482,957
11,634,062
1,773,029
6,066,257
$
15,789,733
$
217,696
37,314
7,800
878
61,778
725,642
1,051,108
12,422,641
$
Totals
$
1,806,372
$
25
13,988
10,955
8,729
Governmental
Activities Internal Service
Funds
332,700
75,533
21,529
94,381
61,778
725,642
1,311,563
16,413
Total liabilities
Total net position
Wastewater
226,783
Noncurrent liabilities:
Loans
Bonds, net
Total noncurrent liabilities
Other
Enterprise
Funds
2,867,775
$
31,080,149
$
23,287
8,595
2,680
34,562
4,271
3,049,616
$
4,822,645
City of Pismo Beach
Statement of Revenues, Expenses
and Changes in Fund Net Position – Proprietary Funds
Enterprise Funds
Water
Operating revenues:
Sales of water
Service fees
Miscellaneous
Total operating revenues
Operating expenses:
Salaries and benefits
Purchased power
Services and supplies
Customer accounting
Joint operating expenses
Depreciation and amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Property and special taxes
Interest and investment revenue
Interest expense
Total nonoperating revenues
(expenses)
Income (loss) before transfers
Transfers:
Transfers in
Transfers out
Total transfers
Net position, beginning of year
Net position, end of year
$ 3,793,692
57,964
50,920
3,902,576
628,731
121,785
650,493
57,426
2,596,449
383,996
4,438,880
Wastewater
Other
Enterprise
Funds
$
$
3,790,967
50,555
3,841,522
551,567
22,205
573,772
820,967
199,963
1,327,587
21,870
158,949
Totals
$ 3,793,692
4,400,498
123,680
8,317,870
Governmental
Activities Internal
Service Funds
$
458,326
42,023
500,349
635,853
3,006,240
60,936
421,001
1,608,647
321,748
2,179,196
79,296
2,596,449
1,080,785
7,866,121
835,282
152,771
451,749
(228,506)
(536,304)
1,717,621
18,018
201,116
115,956
1,868
350,191
260,840
728,855
7,221
(326,645)
3
3,137
1,717,621
25,242
(323,508)
31,571
-
1,735,639
(319,424)
3,140
1,419,355
31,571
1,199,335
515,858
155,911
1,871,104
(196,935)
(56,615)
(56,615)
(57,825)
(57,825)
21,389
(371)
21,018
21,389
(114,811)
(93,422)
366,759
366,759
1,142,720
458,033
176,929
1,777,682
169,824
14,647,013
11,964,608
2,690,846
29,302,467
4,652,821
$ 15,789,733
$ 12,422,641
$ 2,867,775
$ 31,080,149
26
$
4,822,645
City of Pismo Beach
Statement of Cash Flows – Proprietary Funds
Enterprise Funds
Cash flows from operating activities:
Receipts from customers
Payments to suppliers for goods and services
Payments to other funds for services
Payments from other funds for services
Payments to employees for wages and benefits
Net cash provided by (used in)
operating activities
Cash flows from noncapital financing activities:
Property and special taxes
Transfers from other funds
Transfers to other funds
Net cash provided by (used in) noncapital
financing activities
Cash flows from capital and related
financing activities:
Payments on long-term debt principal
Interest paid on long-term debt
Purchases of capital assets
Net cash used in capital and related
financing activities
Cash flows from investing activities:
Interest on investments
Net cash provided by investing activities
Net change in cash and cash equivalents
Cash and investments, beginning of year
Cash and investments, end of year
Water
Wastewater
$ 3,901,291
(3,579,806)
(285,031)
$ 3,810,416
(1,084,793)
(354,765)
(632,462)
(814,077)
(596,008)
Other
Enterprise
Funds
$
579,144
(202,611)
(159,765)
8,290,851
(4,867,210)
(639,796)
(1,606,304)
216,768
1,177,541
40,502
1,717,621
21,389
(114,811)
366,759
(57,825)
21,389
(371)
(57,825)
21,018
1,624,199
366,759
1,556,781
1,717,621
(56,615)
1,661,006
Totals
(233,533)
(736,403)
(321,914)
(367,143)
(233,533)
(1,425,460)
-
$
(344,370)
499,148
(114,276)
(712,157)
(1,658,993)
(712,157)
7,702
7,702
3,248
3,248
29,246
29,246
849,761
81,198
241,034
1,171,993
3,391,353
3,923,034
1,568,227
8,882,614
$ 4,241,114
$ 4,004,232
$ 1,809,261
$ 10,054,607
$
(736,403)
(321,914)
(600,676)
18,296
18,296
27
Governmental
Activities -Internal
Service Fund
31,859
31,859
(273,037)
3,359,566
$
3,086,529
City of Pismo Beach
Statement of Cash Flows – Proprietary Funds, Continued
Page 2
Enterprise Funds
Water
Reconciliation of operating income (loss) to
net cash provided by (used in) operating activities:
Adjustments to reconcile operating income (loss) to
Change in assets and liabilities:
Accounts receivable
Prepayments
Accounts payable
Accrued liabilities
Deposits
$
$
(536,304)
Wastewater
Other Funds
$
$
835,282
152,771
383,996
635,853
60,936
34,949
(36,055)
(114,983)
(287,646)
(3,731)
(36,234)
(30,939)
(125)
100,233
9,754
6,890
(167)
5,372
(596,008)
$ 1,556,781
$
$
216,768
451,749
$
1,080,785
$
1,177,541
(228,506)
260,840
9,382
(36,180)
(20,978)
(273,159)
2,343
(36,401)
(6,228)
4,733
(816)
Noncash investing, capital or financing activities:
None.
28
Totals
Governmental
Activities -Internal
Service Fund
(1,201)
2,749
4,940
1,680
$
40,502
City of Pismo Beach
Statement of Fiduciary Net Position – Employee Benefit Trust Fund
June 30, 2014
Retired
Employees
Health Care
Plan
Assets
Investments at fair value:
California Employer's Retiree Benefit Trust Program
pooled investments
Total assets
$ 1,504,664
$ 1,504,664
Net Position
Held in trust for other post employment benefits
29
$ 1,504,664
City of Pismo Beach
Statement of Changes in Fiduciary Net Position – Employee Benefit Trust Fund
Retired
Employees
Health Care
Plan
Additions:
Contributions:
Employer
Investment income:
Net appreciation in fair value of investments
Total additions
Deductions:
Administration
Benefits
Total deductions
$
234,000
226,264
460,264
1,825
126,496
128,321
Net change
331,943
Net position held in trust for other post employment benefits:
Beginning of year
1,172,721
$ 1,504,664
End of year
30
City of Pismo Beach
Notes to the Financial Statements
June 30, 2014
Note 1: Summary of Significant Accounting Policies
Description of the Reporting Entity
The City of Pismo Beach (the City) is a municipal corporation governed by an elected Mayor and four City
Council members. The accompanying financial statements present the City (the Primary government) and
its component units, entities for which the government is considered to be financially accountable.
The City of Pismo Beach Public Financing Authority (the Authority) and the Public Facilities Corporation (the
Corporation) are legally separate corporate entities for which the City is financially accountable and they are
governed by the elected City Council. The Authority and Corporation were formed to provide a method of
financing public improvements. The City has identified the Authority and the Corporation as blended
component units in accordance with Governmental Accounting Standards Board (GASB) Statement No. 14,
amended by GASB Statements No. 39 and 61, and they have been included in the accompanying financial
statements. The Authority and the Corporation do not separately issue financial statements.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e. the statement of net position and the statement of changes in
net position) report information on all of the nonfiduciary activities of the City and its component units.
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 is 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.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including
special assessments. Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise, general revenues include all taxes.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
31
City of Pismo Beach
June 30, 2014
Page 2
Note 1: Summary of Significant Accounting Policies (Continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants
and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the
City's water and wastewater function and other functions of the City. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims
and judgments, are recorded only when payment is due.
Property taxes, sales taxes, transient occupancy taxes, licenses, and interest associated with the current
fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the
current fiscal period. Only the portion of special assessments receivable due within the current fiscal period
is considered to be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the government.
The City reports the following major governmental funds:
General Fund is the government’s primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
Housing in Lieu Fund is a special revenue fund used to account for affordable housing. The main
revenue source is an in lieu fee paid by developers at 5% of assessed valuation of building permits.
32
City of Pismo Beach
June 30, 2014
Page 3
Proprietary fund financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded at the time the liabilities are incurred.
The City had one nonmajor proprietary fund, the Transit Fund, with a deficit fund balance of $4,088.
The City reports the following major proprietary funds:
Water Fund accounts for the operations of the City's water treatment and distribution system.
Wastewater Fund accounts for the operation of the City's wastewater treatment plant and collection
facilities.
Additionally, the City has established an internal service fund which is used to account for the City's vehicle
fleet and technology equipment and services provided to other City departments on a cost reimbursement
basis.
The City has also established a fiduciary fund that is a private-purpose trust fund to account for assets held
in trust for retired employees’ health care.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with the proprietary fund's principal ongoing operations. The principal operating revenues of the
City's enterprise and internal service funds are charges to customers for sales and services. Operating
expenses for the enterprise and internal service funds include the costs of sales and services, administration
costs and depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as nonoperating revenues and expenses.
Assets, Liabilities, and Net Position or Equity
Cash and Investments
The City is authorized by its most recent investment policy to invest in the State of California Local Agency
Investment Fund, U.S. Treasury bonds, bills, and notes, obligations issued by US Government agencies,
bankers acceptances, repurchase agreements, and time deposits and savings and demand accounts.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short term
investments with original maturities of three months or less from the date of acquisition.
33
City of Pismo Beach
June 30, 2014
Page 4
Investments for the City are reported at fair value. The State Treasurer’s Investment Pool operates in
accordance with appropriate state laws and regulations. The reported value of the pool is the same as the
fair value of the pool shares.
Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or
“advances to/from other funds” (i.e., the non-current portion of interfund loans). Any residual balances
outstanding between the governmental activities and business-type activities are reported in the governmentwide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve
account in applicable government funds to indicate that they are not available for appropriation and are not
expendable available financial resources.
All trade and property tax receivables are not shown net of an allowance for uncollectibles.
Property taxes are levied as of March 1 on property values assessed as of the same date. State statutes
provide that the property tax rate be limited generally to 1% of market value, be levied by only the County,
and be shared by applicable jurisdictions. The County of San Luis Obispo collects the taxes and distributes
them to taxing jurisdictions on the basis of assessed valuations subject to voter-approved debt. Property
taxes are due on November 1 and March 1, and become delinquent on December 10 and April 10. The City
receives property taxes pursuant to an arrangement with the County known as the “Teeter Plan”. Under the
plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to
the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.
Inventories and Prepayments
The City has no significant inventories. All inventories are valued at cost using the first-in/first-out (FIFO)
method. Inventories of governmental funds are recorded as expenditures when used or consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepayments in the governmental
funds are accounted for using the consumption method.
34
City of Pismo Beach
June 30, 2014
Page 5
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities column
in the government-wide financial statements. Capital assets are defined by the government as assets with
an initial, individual cost of more than $5,000 ($50,000 for infrastructure type assets) and an estimated useful
life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of
donation. The costs of normal maintenance and repairs that do not add to the value of asset or materially
extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as
projects are constructed. Interest incurred during the construction phase of capital assets of the businesstype activities is included as part of the capitalized value of the assets constructed. Property, plant, and
equipment of the City are depreciated using the straight line method over the following estimated useful lives:
Assets
Buildings and improvements
Public domain infrastructure
System infrastructure
Vehicles and equipment
Years
10 - 50
50
15 - 60
5 - 10
Compensated Absences and Other Post Employment Benefit Obligation (Asset)
It is the government’s policy to permit employees to accumulate earned but unused vacation benefits. There
is a liability for unpaid accumulated vacation since the City does have a policy to pay employees for unused
vacation when they separate from service with the City. All vacation pay is accrued when incurred in the
government-wide and proprietary fund financial statements. A liability for these amounts is reported in the
governmental funds only if they have matured and have not been paid when due, for example, as a result of
employee resignations and retirements.
Other post employment benefit asset, such as that related to retiree medical benefit plans, is accrued in the
government-wide financial statements based upon actuarial and other plan information.
Long-term Liabilities
In the government-wide financial statements, and the proprietary fund types in the fund financial statements,
long-term debt and other long-term liabilities are reported as liabilities in the applicable governmental
activities, business-type activities or proprietary fund statement of net position.
35
City of Pismo Beach
June 30, 2014
Page 6
Fund Balances – Governmental Funds
Fund balances for governmental funds are reported in classifications based primarily on the extent to which
the City is bound to honor constraints about the specific purposes for which amounts in those funds can be
spent. These classifications include (1) non-spendable, (2) restricted, (3) committed, (4) assigned and (5)
unassigned amounts.
Non-spendable fund balance includes amounts that cannot be spent because they are either (a) not
spendable in form such as inventories, prepaid items and certain long-term receivables or (b) legally
or contractually required to be maintained intact.
Restricted fund balance includes amounts where constraints placed on the use of resources are
externally imposed by grantors, contributors, other governments or by laws and regulations.
Committed fund balance includes amounts that can only be used for a specific purpose pursuant to
constraints imposed by formal action of the City’s highest level of decision making authority which
includes City Resolutions or legislation. It also includes contractual obligations for which existing
amounts cannot be used for any other purpose unless the City removes or changes the specified
use by taking the same action it employed previously to commit those amounts.
Assigned amounts are fund balance amounts constrained by the City’s intent to be used for a
specific purpose. Such intent should be expressed by the City Manager or Director of Administrative
Services to assign amounts to be used.
Unassigned amounts are the residual amounts reported in the general fund.
When expenditures are incurred for which both restricted and unrestricted (committed, assigned or
unassigned) amounts are available, the City considers restricted amounts to have been spent first.
When expenditures are incurred for which any class of unrestricted fund balance could be used, the City
considers committed amounts would be reduced first, followed by assigned, and then unassigned amounts.
Reconciliation of Government-wide and Fund Financial Statements
A reconciliation between total fund balance of the governmental funds and total net position of the
governmental activities as reported in the government-wide statement of net position is presented on pages
19 through 20.
36
City of Pismo Beach
June 30, 2014
Page 7
A reconciliation between total net change in fund balance of the governmental funds and total change in net
position of governmental activities as reported in the government-wide statement of activities is presented on
pages 22 through 23.
There are no differences between total net position of the proprietary funds and total net position of the
business-type activities as reported in the government-wide statement of net position.
Budgets and Budgetary Accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds. Appropriations lapse at fiscal year-end. The appropriated budget is prepared by fund,
function and department. The City Manager may make transfers of appropriations within a department.
Transfers between departments and other changes require City Council approval. The legal level of control
is the department and fund level. The Council made supplemental appropriations during the fiscal year.
Encumbrance accounting is employed in governmental funds. Encumbrances outstanding at year end are
reported as a reservation of fund balances and do not constitute expenditures or liabilities because the
commitments will be reappropriated and honored during the subsequent year.
Subsequent Events
Events subsequent to June 30, 2014, have been evaluated through December 22, 2014, which is the date
that the financial statements were available to be issued. Management did not identify any subsequent
events that required disclosure.
Note 2: Cash and Investments
At June 30, 2014, cash and investments consisted of the following:
Cash
Investments
$ 6,047,005
27,894,265
Total cash and investments
$ 33,941,270
Custodial Credit Risk – Deposits
Custodial credit risk - deposits is the risk that in the event of a bank failure, the City’s deposits may not be
returned to it. Deposits with financial institutions, including certificates of deposit, totaling $11,066,429 at
June 30, 2014 were insured or collateralized with securities held by the pledging financial institution's trust
department or agent in the City's name.
37
City of Pismo Beach
June 30, 2014
Page 8
Note 2: Cash and Investments (Continued)
For custodial credit risk associated with deposits, the City policy is to follow the California Government Code
which requires California financial institutions to secure the City's deposits by pledging government securities
as collateral. The market 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 June 30, 2014, investments consisted of the following:
State Local Agency Investment Fund (LAIF)
Negotiable certificates of deposit
Federal National Mortgage Association
$ 17,400,265
5,044,000
5,450,000
Total investments
$ 27,894,265
Custodial Credit Risk – Investments
Custodial credit risk – investments is the risk that in the event of the failure of a counterparty, the City will not
be able to recover the value of its investments that are in the possession of an outside party. All of the City’s
investments in securities are insured or registered and held by a counterparty in the City’s name in
accordance with the City’s policies. The City's investment policy specifies that securities are to be held by a
third party, other than the counterparty, in the City's name, whenever possible.
Interest Rate Risk
Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in
general interest rates. As a means of limiting its exposure to fair value losses arising from rising interest
rates, the City's investment policy limits the City's investment portfolio to securities having a maturity date of
five years or less at the date of purchase.
At June 30, 2014, maturities were as follows for the City’s investments:
Average
Maturity
232 Days
1.7 years
4.2 years
38
City of Pismo Beach
June 30, 2014
Page 9
Note 2: Cash and Investments (Continued)
Credit Risk
Credit risk is the risk of loss due to the failure of the security issuer or backer. The City’s policy is to mitigate
this risk by investing in investment grade securities and by diversifying the investment portfolio so that the
failure of any one issuer does not unduly harm the investment portfolio.
At June 30, 2014, credit risk ratings were as follows for the City’s investments:
Rating
Unrated
Unrated
Aaa
Total investments
Fair
Value
$ 17,400,265
5,044,000
5,450,000
$ 27,894,265
Concentration of Credit Risk
The City’s policies in the Investment Management Plan provide 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. Investments in Federal National
Mortgage Association accounted for approximately 20% of the City’s investments at June 30, 2014. These
U.S government-sponsored enterprise agency securities are not explicitly guaranteed by the U.S.
government.
39
City of Pismo Beach
June 30, 2014
Page 10
Note 3: Accounts Receivable
At June 30, 2014, accounts receivable consisted of the following:
Housing
in Lieu
General
Accounts receivable
$ 102,575
153,654
$
Total accounts receivable
$ 256,229
$
Water
Accounts receivable
-
Other
Governmental
Funds
Internal
Service
Total
Governmental
Activities
$
122,240
177,802
$
1,742
$
226,557
331,456
$
300,042
$
1,742
$
558,013
Other
Enterprise
Funds
Wastewater
Total
Business-Type
Activities
$ 672,760
$
589,273
$
26,954
$
1,288,987
$ 672,760
$
589,273
$
26,954
$
1,288,987
Note 4: Note Receivable
In 2012, the City entered into a note receivable agreement for a loan in the amount of $1,657,235 for the
development of affordable housing. The loan bears interest at 3% per annum. Principal and interest are due
and payable in full in 2066. The loan is secured by a deed of trust and a regulatory agreement. At June 30,
2014, the current principal balance on the note receivable was $1,086,826.
40
City of Pismo Beach
June 30, 2014
Page 11
Note 5: Capital Assets
Capital assets activity for the year ended June 30, 2014 was as follows:
Balance
June 30, 2013
Capital assets not being depreciated:
Land
Rights of way - street system
Total capital assets not
being depreciated
Capital assets being depreciated:
Buildings
Vehicles
Improvements
Infrastructure - street system
being depreciated
Accumulated depreciation:
Buildings
Vehicles
Improvements
Infrastructure - street system
Total accumulated
depreciation
Total capital assets being
depreciated, net
Net capital assets,
governmental activities
$ 6,957,295
5,068,528
2,294,708
Additions
$
14,320,531
Deductions
Balance
June 30, 2014
$
$
412,344
(2,054,855)
6,957,295
5,068,528
652,197
412,344
(2,054,855)
12,678,020
5,531,963
2,223,058
3,833,386
9,672,667
43,832,210
1,966,685
65,093,284
2,763,589
(2,430,199)
(1,165,103)
(2,544,810)
(2,826,775)
(24,899,347)
(109,083)
(107,344)
(260,840)
(486,062)
(1,858,181)
(33,866,234)
(2,821,510)
-
(36,687,744)
(57,921)
-
31,169,129
31,227,050
$ 45,547,581
41
5,531,963
2,424,981
4,428,367
9,672,667
45,798,895
201,923
594,981
$
354,423
-
67,856,873
(2,539,282)
(1,272,447)
(2,805,650)
(3,312,837)
(26,757,528)
$ (2,054,855)
$ 43,847,149
City of Pismo Beach
June 30, 2014
Page 12
Note 5: Capital Assets (Continued)
Balance
June 30, 2013
Capital assets not being depreciated:
Land
Total capital assets not
being depreciated
Capital assets being depreciated:
Buildings
Capacity rights
Tanks, wells and improvements
Equipment
Pipelines and collection system
Pier
being depreciated
Accumulated depreciation:
Buildings
Capacity rights
Tanks, wells and improvements
Equipment
Pipelines and collection system
Pier
Total accumulated
depreciation
Total capital assets being
depreciated, net
Net capital assets,
business-type activities
$
372,775
4,310,538
Additions
$
4,683,313
Deductions
Balance
June 30, 2014
$
$
281,013
(3,792,188)
372,775
799,363
281,013
(3,792,188)
1,172,138
333,726
1,044,264
7,048,018
2,086,789
32,110,081
1,922,411
3,975,003
136,847
44,545,289
4,111,850
333,726
1,044,264
11,023,021
2,223,636
32,110,081
1,922,411
-
48,657,139
(333,726)
(783,198)
(5,122,403)
(753,462)
(8,941,056)
(1,176,300)
(52,214)
(381,603)
(94,234)
(502,633)
(44,632)
(17,110,145)
(1,075,316)
-
(18,185,461)
27,435,144
3,036,534
-
30,471,678
$ 32,118,457
42
$
3,317,547
(333,726)
(835,412)
(5,504,006)
(847,696)
(9,443,689)
(1,220,932)
$ (3,792,188)
$ 31,643,816
City of Pismo Beach
June 30, 2014
Page 13
Note 5: Capital Assets (Continued)
Depreciation expense was charged to functions/programs as follows:
General government
Public safety
Community services
Infrastructure - streets
Vehicles - internal service fund
Total depreciation, governmental activities
Water
Wastewater
Parking
Pier
Total depreciation, business-type activities
$
45,042
156,286
411,900
1,947,442
260,840
$
2,821,510
$
383,996
630,383
16,304
44,633
$
1,075,316
Note 6: Long-Term Debt
Long-term debt activity for the year ended June 30, 2014 was as follows:
Balance
June 30, 2013
Revenue refunding bonds
Claims
Total long-term debt,
governmental activities
Revenue refunding bonds
Unamortized bond premium
State revolving loans
Total long-term debt,
business-type activities
Additions
$ 3,940,000
370,253
161,488
$
$ 4,471,741
$
50,332
$
60,979
5,535,000
405,179
7,738,625
$
2,343
$ 13,739,783
$
Balance
June 30, 2014
Due Within
One Year
$ (290,000)
$ 3,650,000
382,864
199,209
$
300,000
11,000
60,000
$ (290,000)
$ 4,232,073
$
371,000
$
$
21,529
190,000
Deductions
12,611
37,721
43
2,343
63,322
5,345,000
384,920
7,212,481
$
(190,000)
(20,259)
(526,144)
$ (736,403)
$ 13,005,723
$
535,642
747,171
City of Pismo Beach
June 30, 2014
Page 14
Note 6: Long-Term Debt (Continued)
2007A Lease Revenue Refunding Bonds
In 2007, the Authority issued lease revenue refunding bonds (2007A bonds) in the amount of $5,185,000 to
advance refund and retire prior revenue bonds. The Authority entered into a lease arrangement with the City
wherein the City is obligated to make all debt service payments on the 2007A bonds. The transactions
between the Authority and the City have been eliminated from these financial statements. The debt is
reported within the governmental activities and related debt service payments are reported within the
General fund. The 2007A bonds are secured by a covenant of the City to make provisions in its annual
budget to provide for funding the retirement of principal and payment of interest. The bonds maturing on or
after December 1, 2018 are subject to redemption prior to maturity as specified in the bond resolution. The
2007A bonds bear interest at rates from 3.5 to 5%. Principal and interest are payable in semi-annual
installments each June 1 and December 1 through 2025.
At June 30, 2014, future minimum principal and interest payments on the 2007A bonds were as follows:
For the Year Ending June 30,
2015
2016
2017
2018
2019
2020-2024
2025
$
Total
$
44
Principal
300,000
310,000
325,000
335,000
355,000
1,785,000
240,000
Interest
$ 146,931
136,431
120,931
108,906
96,344
260,761
10,050
3,650,000
$ 880,354
$
Total
446,931
446,431
445,931
443,906
451,344
2,045,761
250,050
$ 4,530,354
City of Pismo Beach
June 30, 2014
Page 15
State Revolving Fund Loans
The City entered into an agreement with the State Water Resources Control Board for a $10,154,284 loan
with an effective interest rate of approximately 1.8% for the purpose of financing wastewater system
improvements.
At June 30, 2014, future minimum principal and imputed interest payments on this loan payable were as
follows:
2015
2016
2017
2018
2019
2020-2024
2025-2026
$
Total
$
Principal
491,672
500,537
509,561
518,749
528,102
2,786,814
1,186,339
Interest
$ 117,588
108,723
99,698
90,511
81,158
259,483
32,179
6,521,774
$ 789,340
$
Total
609,260
609,260
609,259
609,260
609,260
3,046,297
1,218,518
$ 7,311,114
The City entered into a second agreement with the State Water Resources Control Board for a $231,904
loan with an effective interest rate of approximately 1.8% for the purpose of financing additional
improvements.
follows:
2015
2016
2017
2018
2019
2020-2024
2025-2026
Total
45
Principal
$
11,916
12,141
12,371
12,605
12,844
67,962
14,375
Interest
$
2,731
2,505
2,275
2,041
1,802
5,270
274
Total
$
14,647
14,646
14,646
14,646
14,646
73,232
14,649
$
$
$
144,214
16,898
161,112
City of Pismo Beach
June 30, 2014
Page 16
The City also entered into third agreement with the State Water Resources Control Board for an additional
$847,763 loan with an effective interest rate of approximately 1.8% for the purpose of financing additional
improvements.
follows:
2015
2016
2017
2018
2019
2020-2024
2025-2029
$
Total
$
Principal
32,054
32,631
33,220
33,819
34,428
181,679
198,662
546,493
$
$
Interest
9,853
9,275
8,687
8,088
7,478
27,853
10,874
82,108
$
$
Total
41,907
41,906
41,907
41,907
41,906
209,532
209,536
628,601
The City has pledged future wastewater system revenues, net of specified operating expenses, to repay the
State Revolving Fund Loans. Proceeds from the loans were used to complete a major upgrade to the City’s
wastewater treatment plant and related facilities. The loans are payable solely from wastewater customer
net revenues and are payable through 2026. Annual principal and interest payments on the loans are
expected to require less than 54% of net revenues as defined. For the year ended June 30, 2014, principal
and imputed interest paid and total system net revenues were $665,812 and $1,471,135, respectively.
Wastewater Refunding Revenue Bonds, Series 2012
In 2012, the Authority issued revenue refunding bonds (2012 bonds) in the amount of $5,710,000 to advance
refund the 2004 revenue bonds, series A. The Authority entered into a lease arrangement with the City
wherein the City is obligated to make all debt service payments on the 2012 bonds. The transactions
between the Authority and the City have been eliminated from these financial statements and the debt and
related debt service payments are reported within the Wastewater fund. The 2012 bonds bear interest at
rates of 2.0 to 5%. Principal and interest are payable in semi-annual installments each June 30 and
December 30 through 2033.
46
City of Pismo Beach
June 30, 2014
Page 17
At June 30, 2014, future minimum principal and imputed interest payments on the 2012 bonds were as
follows:
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2033
Total
$
$
Principal
190,000
195,000
205,000
215,000
220,000
1,280,000
1,575,000
1,465,000
Interest
$ 198,063
192,288
185,263
176,863
168,163
675,390
370,651
100,383
5,345,000
$ 2,067,064
$
Total
388,063
387,288
390,263
391,863
388,163
1,955,390
1,945,651
1,565,383
$ 7,412,064
In the statement of net position, the 2012 bonds include the related unamortized premium which is being
amortized and charged to expense over the term of the 2012 bonds. At June 30, 2014, the unamortized
premium was $384,920.
The City has also pledged future wastewater system revenues, net of specified operating expenses, to repay
the 2012 bonds. The bonds are payable solely from wastewater customer net revenues. The principal and
interest payments on the bonds are expected to require less than 38% of net revenues. For the year ended
June 30, 2014, principal and interest paid and total customer net revenues were $392,813 and $1,471,135,
respectively.
The advance refunding resulted in a difference $289,264 between the reacquisition price and the net
carrying value of the old debt. This loss on refunding is reported as a deferred outflow of resources in the
statement of net position and is being amortized to expense through 2033. The City completed the refunding
to reduce its total debt service payments over the next 21 years by $991,751 and to obtain an economic gain
of $800,743 (difference between the present values of the old and the new debt service payments).
The City’s internal service fund predominately serves the governmental funds. Accordingly, long-term
liabilities of the internal service fund are included in governmental activities in the statement of net position.
At June 30, 2014, compensated absences of the internal service fund were $6,951.
For the governmental activities, claims and judgments and compensated absences are generally liquidated
by the General fund. See Note 11 for further discussion on claims liability.
47
City of Pismo Beach
June 30, 2014
Page 18
Note 7: Other Post Employment Benefits (OPEB)
Plan Description
The City administers the City’s Retired Employees Healthcare Plan (the Plan), a single employer defined
benefit healthcare plan. The Plan provides medical insurance benefits to eligible retirees and their spouses.
City resolutions and agreements assign the authority to establish and amend benefit provisions to the City.
Separate financial statements of the Plan are not issued by the City. A separate other post employment
benefits (OPEB) trust has been established by the City.
Funding Policy
The contribution requirements of Plan members and the City are established by and may be amended by the
City. The required contribution is based on projected pay-as-you-go financing requirements, with additional
amounts to prefund benefits as determined annually by the City Council. For the year ended June 30, 2014,
the City contributed $126,496 for current year premiums (100% of total premiums) and $234,000 to prefund
benefits. Plan members receiving benefits contributed no amounts of the total premiums.
Annual OPEB Cost and Net OPEB Obligation (Asset)
The City’s annual OPEB cost (expense) is calculated based on the annual required contribution of the
employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement
No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal
cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years.
The following table shows components of the City’s annual OPEB cost for the year, the amount actually
contributed to the Plan, and changes in the City’s net OPEB obligation (asset):
Annual required contribution (ARC)
Interest on net OPEB obligation
Adjustment to annual required contributions
Annual OPEB cost
Contributions made
Change in net OPEB obligation
Net OPEB asset, beginning of year
$
214,000
(2,000)
1,000
213,000
(234,000)
(21,000)
(23,000)
Net OPEB asset, end of year
$
(44,000)
48
City of Pismo Beach
June 30, 2014
Page 19
Note 7: Other Post Employment Benefits (OPEB) (Continued)
The City’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the Plan, and the net
OPEB obligation (asset) for the last three years were as follows:
Fiscal Year
6/30/2014
6/30/2013
6/30/2012
Annual
OPEB
Cost
$ 213,000
$ 211,000
$ 221,067
Actual
Contributions
$
234,000
$
234,000
$
211,067
% of Annual
OPEB Cost
Contributed
109.9%
110.9%
95.5%
Net OPEB
Obligation
(Asset)
$
(44,000)
$
(23,000)
$
-
Funding Status and Funding Progress
The funded status of the Plan as of June 30, 2013, the Plan’s most recent actuarial valuation, was as follows:
Actuarial accrued liability
Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL)
Funded ratio
Covered payroll
UAAL as a percentage of covered payroll
$
2,670,000
1,153,000
$ 1,517,000
43.18%
$ 6,153,000
24.65%
Actuarial valuations of an ongoing plan involve estimates of the reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the health care cost trend. 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 multiyear trend information about whether the actuarial value of Plan assets is
increasing or decreasing over time relative to actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projection of benefits for financial reporting purposes are based on the substantive Plan (the Plan as
understood by the employer and the Plan members) includes 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
to that point. The actuarial methods and assumptions used include techniques that are designed to reduce
the effects of short term volatility in actuarial liabilities and the actuarial value of plan assets, consistent with
the long-term perspective of the calculations.
49
City of Pismo Beach
June 30, 2014
Page 20
Note 7: Other Post Employment Benefits (OPEB) (Continued)
In the June 30, 2013 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial
assumptions included a 6.75% investment rate of return which is a blended rate of the expected long-term
invested returns on plan assets and on the employers own investments calculated based on the funded level
of the plan at the valuation date, a general inflation rate of 3%, and an annual health care cost trend of 8.5 to
8.9% initially, reduced to an ultimate rate of 5.0% after eight years. The UAAL is being amortized as a level
percentage of projected payroll over 25 years, the remaining amortization period as of June 30, 2013. The
amortization period is closed.
Note 8: Interfund Receivables, Payables and Transfers
There were no interfund receivables and payables at June 30, 2014.
Interfund transfers for the year ended June 30, 2014 were as follows:
Transfers In
Governmental Funds:
General Fund
Other Governmental Funds:
Capital Projects Fund
State Gas Tax Fund
Impact Fee Fund
Underground Utility
Enterprise Funds:
Water Fund
Wastewater Fund
Other Enterprise Funds:
Pier Fund
Parking Fund
Internal Service Funds
Total interfund transfers
$
297,171
Transfers Out
$
227,100
780,292
1,987
171,052
124,132
126
21,000
300,981
56,615
57,825
21,389
371
366,759
$
1,213,400
$
1,213,400
The primary purpose of interfund transfers is to move unrestricted fund revenues to finance various
programs that the government must account for in other funds in accordance with budgetary authorizations,
including capital outlay expenditures. Interfund transfers were made from the General Fund to the City of
Pismo Beach Public Financing Authority Fund as debt service principal and interest payments become due.
Interfund transfers were made from various funds to the Internal Service Fund for vehicle replacement
contributions.
50
City of Pismo Beach
June 30, 2014
Page 21
Note 9: Public Employees Retirement System
Plan Description
The City contributes to the California Public Employees Retirement System (PERS), a cost sharing multipleemployer public employee defined benefit pension plan. PERS provides retirement and disability benefits,
annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a
common investment and administrative agent for participating public entities within the State of California.
Benefit provisions and all other requirements are established by the State statute and City ordinance. PERS
issues publicly available financial reports that include the financial statements and required supplementary
information for the PERS. Copies of the PERS annual financial report may be obtained from their executive
office, 400 “P” Street, Sacramento, California 95814.
Funding Policy and Annual Pension Cost
The contribution requirements of plan members and the City are established by and may be amended by
PERS. Regular plan members are required to contribute 8.0% of their annual covered salary and safety
members are required to contribute 9.0% of their annual covered salary. The City is required to contribute at
an actuarially determined rate based upon the plan and tier the employee was hired under, which are
determined by hire date. During the year ended June 30, 2014, the City’s actuarially determined employer
contributions rates for covered payroll for regular employees was 18.05% for tier 1, 7.85% for tier 2, and
6.25% for tier 3; for police employees was 45.66% for tier 1, 20.31% for tier 2, and 11.5% for tier 3; and for
fire employees was 51.73% for tier 1, and 11.5% for tier 3. There was no tier 2 for fire employees.
The City's annual pension cost for the most recent three year period was as follows:
Plan
Fiscal Year
Regular employees:
6/30/2014
6/30/2013
6/30/2012
Annual
Pension
Cost (APC)
Actual
Contributions
% of APC
Contributed
Net Pension
Obligation
$
$
$
705,984
727,469
733,750
$
$
$
705,984
727,469
733,750
100.0%
100.0%
100.0%
$
$
$
-
6/30/2014
6/30/2013
6/30/2012
$
$
$
781,680
837,403
892,449
$
$
$
781,680
837,403
892,449
100.0%
100.0%
100.0%
$
$
$
-
6/30/2014
6/30/2013
6/30/2012
$
$
$
16,191
28,620
37,366
$
$
$
16,191
28,620
37,366
100.0%
100.0%
100.0%
$
$
$
-
Police employees:
Fire employees:
51
City of Pismo Beach
June 30, 2014
Page 22
Note 10: Jointly Governed Organizations and Operating Agreements
Jointly governed organizations are legal entities or other organizations that result from a contractual
arrangement and that are owned, operated, or governed by two or more participants as a separate and
specific activity subject to joint control in which the participants retain an ongoing financial interest or ongoing
financial responsibility.
The City is a participant in the following organizations:
South County Area Transit and San Luis Obispo Regional Transit Authority
The City is a member of South County Area Transit and San Luis Obispo Regional Transit Authority, which
were formed to provide fixed route and regional transit services within the member cities and the County.
The City's obligation to these entities is limited to the assignment of its Local Transportation Fund allocations
to the joint powers agencies.
The City has the following water treatment and supply agreements:
Water Treatment and Facilities Agreement
The City has an agreement with the San Luis Obispo County Flood Control and Water Conservation District
(the District) wherein the District and the Central Coast Water Authority (the Water Authority) constructed
and operate a joint water treatment facility and water conveyance system. The Water Authority financed the
facility and system by selling revenue bonds, and in 1997, issued $198 million in refunding revenue bonds.
In 2006, the Water Authority issued refunding bonds to take advantage of lower market interest rates. The
agreement is a take-or-pay obligation, and the City is obligated to pay amounts specified in the agreement
whether or not water is treated or delivered. The amounts paid by the City are pledged by the Water
Authority for repayment of the Water Authority's debt obligations. The City recorded these payments as
operating expenses of $141,957 and $1,440,238 to the District and Water Authority, respectively, in its Water
Fund.
Water Supply Agreement
The City has entered into a water supply agreement with the District for the purpose of obtaining additional
water for municipal purposes. The City is obligated to make payments even if the City fails or refuses to
accept water deliveries. The District's source for such additional water supplies is the California State Water
Project (SWP). The SWP has constructed facilities to extend the California Aqueduct to the Central Coast
and to the facilities owned by the Water Authority. The City has recorded as long-term prepayments in its
Water Fund payments made under this agreement while the SWP expansion was under construction and
prior to its ability to convey water under the arrangement. These prepayments are being amortized to
expense as operating expenses over the term of the agreement.
52
City of Pismo Beach
June 30, 2014
Page 23
Note 10: Jointly Governed Organizations and Operating Agreements (Continued)
Lopez Dam Agreement
The City has entered into a Lopez Dam agreement with the District related to the Lopez Dam storage
reservoir, water treatment plant, main conduits, and related facilities built for the primary purpose of providing
a municipal water supply to cities in the County. This agreement is also a take-or-pay arrangement and the
City is obligated to make payments regardless of water deliveries. In 2000, voters in Zone 3 of the District,
authorized the District to issue $13.2 million in general obligation bonds to provide funds to construct seismic
improvements to the Lopez Dam and facilities. The District is to receive such tax revenues under the voter
approved arrangement and is to also receive payments from the City and other participating governments in
amounts sufficient to pay debt service on the bonds and related operating and capital costs. The City
recorded these payments of $1,014,254 as expenses in its Water Fund.
Note 11: Risk Management
Self Insurance
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters for which the City carries insurance. The City, due to the costs
of available coverage, participated as a member in the Central Coast Cities Self-Insurance Fund (CCCSIF)
through June 30, 2003 for general liability insurance and through June 30, 2004 for workers compensation
insurance. Thereafter, the City joined the California Joint Powers Insurance Authority (California JPIA). The
California JPIA provides general liability insurance to the City with a $50 million per occurrence and $50
million per year aggregate limit and workers compensation insurance with statutory benefits and $10 million
employer’s liability coverage. The risk of loss is transferred to the California JPIA. The City is subject to
retrospective premium adjustments under the arrangement. Claims liabilities in the governmental funds are
generally liquidated by the General Fund.
The City is responsible for payment of its respective claims that were outstanding with the CCCSIF at the
time the City elected to insure with the California JPIA. The uninsured risk for these claims, referred to as
tail-end claims, retained by the City was $300,000 per incident for workers compensation claims, $50,000
per incident for general liability claims, and $5,000 per property damage claim. The CCCSIF periodically
obtains actuarial studies and valuations of the tail-end claim liabilities, and the City reports such estimated
amounts payable as claim liabilities in the statement of net position.
Liabilities of the City are reported in the statement of net position for the governmental activities when it is
probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities
include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to
estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation,
changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to
53
City of Pismo Beach
June 30, 2014
Page 24
Note 11: Risk Management (Continued)
consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs),
and other economic and social factors.
The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related
to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims.
Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability
estimate. Settlements have not exceeded coverage for each of the past three fiscal years.
The estimated liability at June 30, 2014 was calculated as follows:
Interest earnings
Claims expense
$
Estimated liability for reported claims and settlement expenses
Assets on deposit
Estimated unpaid claims liabilities at June 30, 2014
47
(38,247)
(213,821)
14,612
$ (199,209)
Changes in the balances of claims liabilities during the past two fiscal years were as follows:
Deposits at June 30, 2012
Claim payments and related expenditures reimbursement
Increase in estimated claims liability for year ended June 30, 2013
Interest earnings
Claim payments and related expenditures reimbursement
Increase in estimated claims liability for year ended June 30, 2014
Interest earnings
$ (198,759)
(86,374)
123,655
(10)
(161,488)
(38,247)
479
47
$ (199,209)
The City made a payment to CCCSIF of $161,488 on July 3, 2014 to cover a portion of the unpaid claims
liability. This amount was included in expenditures and accounts payable at June 30, 2014.
54
City of Pismo Beach
June 30, 2014
Page 25
Note 12: Commitments and Contingencies
Litigation
The City is involved in litigation incurred in the normal course of conducting City business. Although the
outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of
these matters will not have a material adverse effect on the financial condition of the City.
Grants and Allocations
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be
disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any,
to be immaterial.
Note 13: New Accounting Pronouncements
In March 2012, GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities, which
establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or
deferred inflows of resources, certain items that were previously reported as assets and liabilities and
recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as
assets and liabilities. The provisions of Statement No. 65 are effective for periods beginning after
December 15, 2012. Early implementation of this Statement during the year ended June 30, 2013 caused
net position in the Wastewater Fund to decrease by $156,037 for the write-off of bond issuance costs and
underwriter’s discount that had previously been amortized over the life of the bonds.
In March 2012, GASB issued Statement No. 66, Technical Corrections-2012-an amendment of GASB
Statements No. 10 and No. 62. This Statement improves accounting and financial reporting for a
governmental financial reporting entity by resolving conflicting guidance. The provisions of Statement No. 66
are effective for periods beginning after December 15, 2012. Implementation of this Statement did not have
a significant impact on the financial statements of the City.
In June 2012, GASB issued Statement No. 67, Financial Reporting for Pension Plans – an amendment of
GASB Statement No. 25, which revises existing standards of financial reporting for most pension plans. The
provisions of Statement No. 67 are effective for periods beginning after June 15, 2013. Since this
pronouncement is only applicable to pension plans, it does not apply to the City.
55
City of Pismo Beach
June 30, 2014
Page 26
Note 13: New Accounting Pronouncements (Continued)
In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions—an
amendment of Statement No. 27, that addresses accounting and financial reporting for pensions that are
provided to the employees of state and local governmental employers. The provisions of Statement No. 68
are effective for fiscal years beginning after June 15, 2014. Management has not yet determined the impact
of this Statement on its financial statements.
In January 2013, GASB issued Statement No. 69, Government Combinations and Disposals of Government
Operations. This Statement requires disclosures to be made about government combinations and disposals
of government operations to enable financial statement users to evaluate the nature and financial effects of
those transactions. The provisions of this Statement are effective for periods beginning after December 31,
2013. Management has not yet determined the impact of this Statement on its financial statements.
In April 2013, GASB issued Statement No. 70, Accounting and Financial Reporting for Non-exchange
Financial Guarantees. This Statement specifies the information required to be disclosed by governments
that extend non-exchange financial guarantees. In addition, this Statement requires new information to be
disclosed by governments that receive non-exchange financial guarantees. The provisions of Statement No.
70 are effective for periods beginning after June 15, 2013. Implementation of this Statement did not have a
significant impact on the financial statements of the City.
In November 2013, GASB issued Statement No. 71, Pension Transition for Contributions Made Subsequent
to the Measurement Date –an amendment of GASB Statement No. 68. This Statement addresses an issue
regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for
Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local
government employer on non- employer contributing entity to a defined benefit pension plan after the
measurement date of the government’s beginning net pension liability. The provisions of Statement No. 71
are required to be applied simultaneously with the provisions of Statement No. 68. Management has not yet
determined the impact of this Statement on its financial statements.
.
56
Required Supplementary
Information Section
City of Pismo Beach
Budgetary Comparison Schedule – General Fund
Budgetary Basis
June 30, 2014
Budgeted Amounts
Original
Final
Fund balance - beginning of year
Resources (inflows):
Property taxes
Sales taxes
Other taxes
License and permits
Fines and forfeits
Interest and rents
Intergovernmental
Miscellaneous
Transfers in
Actual
Amounts
$ 10,634,061
$ 10,634,061
$ 10,634,061
3,970,000
3,630,000
7,344,000
774,000
579,650
75,000
319,140
152,296
132,575
597,011
233,793
4,183,262
3,746,952
7,436,000
795,766
604,650
75,000
319,140
207,901
138,575
622,811
316,973
4,193,186
4,104,284
7,988,237
850,072
1,354,904
67,523
279,274
188,760
239,813
646,035
297,171
Amounts available for
charges to appropriations
28,441,526
29,081,091
30,843,320
Charges to appropriations:
General Government:
City Council
Administration
Human Resources
Legal
Conference and Visitors Bureau
Finance
Nondepartmental - other
Nondepartmental - capital outlay
Nondepartmental - retiree medical
Government buildings
295,652
613,598
238,824
186,800
563,333
709,433
1,658,884
98,334
354,616
440,203
295,522
658,863
238,999
228,505
589,493
727,358
1,650,088
180,822
354,616
1,073,716
260,873
624,505
211,673
384,334
558,170
680,434
1,280,377
65,963
351,153
343,927
See notes to required supplementary information.
58
Variance with
Final Budget
Positive
(Negative)
$
9,924
357,332
552,237
54,306
750,254
(7,477)
(39,866)
(19,141)
101,238
23,224
(19,802)
1,762,229
34,649
34,358
27,326
(155,829)
31,323
46,924
369,711
114,859
3,463
729,789
City of Pismo Beach
Budgetary Comparison Schedule – General Fund, Continued
Budgetary Basis
June 30, 2014
Page 2
Actual
Amounts
Budgeted Amounts
Original
Final
Public Safety:
Police
Fire
Weed Abatement
Lifeguards
$
5,042,357
1,986,641
12,200
142,627
$
5,184,071
1,987,716
13,700
142,613
$
4,832,934
1,858,493
20,491
111,234
Variance with
Final Budget
Positive
(Negative)
$
351,137
129,223
(6,791)
31,379
Public Works
Park maintenance
823,212
864,393
928,484
(64,091)
Community Services:
Building
Planning
Recreation City Supported
Recreation Fee Supported
Pismo Beach Veterans Hall
Shell Beach Veterans Hall
Margo Dodd Park
Facilities Maintenance
Engineering
601,397
829,913
277,564
66,596
38,941
18,946
1,893
117,305
515,494
614,082
896,908
332,539
66,622
38,949
18,948
1,894
120,607
518,925
567,897
732,098
344,711
49,859
40,054
15,340
2,175
122,480
576,441
46,185
164,810
(12,172)
16,763
(1,105)
3,608
(281)
(1,873)
(57,516)
Streets:
Maintenance and construction
554,985
762,098
591,476
170,622
1,709,143
3,816,605
780,292
3,036,313
17,898,891
21,378,652
16,335,868
5,042,784
7,702,439
$ 14,507,452
Transfers out
Total charges to appropriations
Fund balance - end of year
$ 10,542,635
59
$
$
6,805,013
City of Pismo Beach
Schedule of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual
Housing In Lieu Fund
June 30, 2014
Budgeted Amounts
Original
Final
Revenues:
Interest
Miscellaneous
Total revenues
$
20,000
20,000
Expenditures:
Housing
Total expenditures
Excess(deficiency) of revenues over
(under) expenditures
$
$
20,000
20,000
Actual
$
66,410
2,131
570,409
638,950
Variance
with Final Budget
Positive (Negative)
$
46,410
2,131
570,409
618,950
500
500
500
500
500
500
19,500
19,500
638,450
618,950
19,500
19,500
638,450
618,950
21,813
21,813
21,813
41,313
60
$
41,313
$
660,263
-
$
618,950
City of Pismo Beach
Schedule of Funding Progress for
Other Post Employment Benefits (OPEB)
June 30, 2014
Actuarial
Valuation Date
6/30/2013
6/30/2011
1/1/2009
Actuarial
Value
of Assets
$ 1,153,000
$ 837,000
$
-
Actuarial
Accrued
Liability (AAL)
$ 2,670,000
$ 2,243,000
$ 1,463,000
Unfunded
AAL (UAAL)
$ 1,517,000
$ 1,406,000
$ 1,463,000
61
Funded
Ratio
43.2%
37.3%
0.0%
Covered
Payroll
$ 6,153,000
$ 6,529,000
$ 5,975,000
UAAL as a %
of Covered
Payroll
24.65%
21.53%
24.49%
City of Pismo Beach
Schedule of Employer Contributions for
Other Post Employment Benefits (OPEB)
June 30, 2014
Fiscal Year
6/30/2014
6/30/2013
6/30/2012
Annual
OPEB
Cost
$ 213,000
$ 211,000
$ 221,067
Actual
Contributions
$
234,000
$
234,000
$
211,067
62
% of Annual
OPEB Cost
Contributed
109.9%
110.9%
95.5%
Net OPEB
Obligation
(Asset)
$
(44,000)
$
(23,000)
$
-
City of Pismo Beach
Notes to Required Supplementary Information
June 30, 2014
Note 1: Budgetary Comparison Schedule – General Fund
Explanations of differences between budgetary inflows and outflows and revenues and expenditures under
the modified accrual basis of accounting in accordance with generally accepted accounting principles are as
follows:
Sources/inflows of resources:
Actual "amounts available for charges to appropriations" from budgetary comparison
schedule:
$
Differences - budgetary basis to GAAP:
Fund balance at the beginning of the year is a budgetary resource but is not a
current year revenue for financial reporting purposes.
(10,634,061)
Transfers in from other funds are inflows of budgetary resources but are not
revenues for financial reporting purposes.
Total General Fund revenues as reported in the statement of revenues, expenditures
and changes in fund balance - governmental funds
Uses/outflows of resources:
Actual "total charges to appropriations" from the budgetary comparison schedule
(297,171)
$
19,912,088
$
16,335,868
Differences - budgetary basis to GAAP:
Transfers to other funds are outflows of budgetary resources but are not
expenditures for financial reporting purposes
Total General Fund expenditures as reported in the statement of revenues,
expenditures and changes in fund balance - governmental funds
30,843,320
(780,292)
$
15,555,576
Note 2: Excess of Expenditures Over Appropriations
In the General Fund, expenditures exceeded appropriations as follows:
Variance with Final
Budget (Negative)
General Government:
Legal
Public Safety:
Weed Abatement
Public Works:
Park Maintenance
Community Services:
Recreation City Supported
Pismo Beach Veterans Hall
Margo Dodd Park
Facilities Maintenance
Engineering
Expenditures did not exceed appropriations in the Housing In Lieu Fund.
63
$
(155,829)
$
(6,791)
$
(64,091)
$
$
$
$
$
(12,172)
(1,105)
(281)
(1,873)
(57,516)
Supplementary
Information Section
City of Pismo Beach
Nonmajor Governmental Funds
June 30, 2014
The City maintains the following nonmajor governmental funds:
Special Revenue Funds
State Gas Tax Fund is used to account for revenues allocated by the State of California and restricted as to
use for only street and highway purposes.
Local Transportation Streets Fund is used to account for revenues allocated under the Transportation
Development Act and restricted in use for street related purposes.
PEG Fund is used to account for fees collected from cable television operators in the City limits that are set
aside for Government cable access.
Noncapital Grants Fund is used to account for specific grant revenues allocated to the City for operational
programs and activities.
Local Business Improvement Fund is used to account for monies raised to promote City lodging businesses.
Chapman House Estate Fund is used to account for the fees collected and maintenance costs for the
Chapman Estate.
Capital Projects Funds
Public Facilities Fund is used to account for resources restricted for the financing of improvements to public
facilities.
Park Development Fund is used to account for the financing of major improvements to City parks and related
facilities.
Circulation Improvement Fund is used to account for impact fees to be used for major improvements to the
City’s street and highway infrastructures.
Capital Projects Fund is used to accumulate resources for use in financing major capital improvement
projects.
Impact Fees Fund is used to account for impact fees restricted for use in making major capital improvements
to different types of City facilities.
Developer Impact Fees Fund is used to account for impact fees to be used for specific development related
capital projects.
65
City of Pismo Beach
Nonmajor Governmental Funds, Continued
June 30, 2014
Page 2
Underground Utility Fund is used to account for fees collected from developers for the purpose of converting
overhead utilities to underground utilities.
Debt Service Funds
City of Pismo Beach Public Financing Authority Fund is used to account for the accumulation of monies for
payment of principal and interest on the 2007A Lease Revenue Refunding Bonds.
Indio/El Portal Assessment District, Visalia Assessment District, and Reassessment Districts Funds are used
to account for special assessments levied and collected for payment of principal and interest on assessment
bonds.
66
City of Pismo Beach
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2014
Local
Transportation
Streets
State Gas
Tax
PEG
Assets
Taxes receivable
Accounts receivable
Prepayments
Total assets
$
$
356,894
27,871
153
384,918
$
448,817
$
1,686
4,091
168
$
454,762
106,036
43
$
106,079
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued liabilities
Deposits
$
Total liabilities
Fund balance:
Nonspendable
Restricted for:
Community business promotion
Park development
Public safety
Debt service
Committed for capital projects
Assigned for:
Capital projects
Future contingencies
$
-
-
384,918
454,762
-
106,079
Total fund balance
Total liabilities and fund balance
$
384,918
$
67
384,918
454,762
$
454,762
106,079
$
106,079
Noncapital
Grants
Local
Business
Improvement
$
$
$
10,023
406,791
21,500
98,901
18
166
35,000
31,541
$
Chapman
House
Estate
$
140,743
Public
Facilities
$
66
53,779
Park
Development
Circulation
Improvement
$
$
22
$
540,858
$
140,809
$
$
117,963
915
$
1,794
$
53,801
872,746
334
$
873,080
$
80,114
32
$
80,146
$
155
-
118,878
1,794
-
155
-
35,000
80,146
139,015
386,980
731,143
31,541
36,725
31,541
$
31,541
421,980
$
540,858
139,015
$
140,809
$
53,000
801
105,057
53,801
872,925
53,801
$
873,080
80,146
$
80,146
Continued
68
City of Pismo Beach
Combining Balance Sheet – Nonmajor Governmental Funds, Continued
June 30, 2014
Page 2
Capital
Projects
Impact Fees
Developer
Impact Fees
Underground
Utility
$ 1,637,344
$
$
403
$
403
Assets
Taxes receivable
Accounts receivable
Prepayments
Total assets
$
33,462
155,047
173,711
634
$
207,173
$
34,162
79,641
63
$ 1,637,978
$
$
$
155,110
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued liabilities
Deposits
$
97,021
Total liabilities
113,803
Fund balance:
Nonspendable
Restricted for:
Community business promotion
Park development
Public safety
Debt service
Committed for capital projects
Assigned for:
Capital projects
Future contingencies
18,420
97,021
-
1,619,558
58,089
403
93,370
1,619,558
58,089
403
207,173
$ 1,637,978
93,370
Total fund balance
Total liabilities and fund balance
18,420
$
69
$
155,110
$
403
City of Pismo
Beach Public
Financing
Authority
Debt Service Funds
Indio /
El Portal
Visalia
Assessment Assessment
District
District
Reassessment
Districts
Total
Nonmajor
Governmental
Funds
$
$
$
$
4,511,103
27,871
122,240
177,802
1,631
35,000
$
4,875,647
$
172,339
80,556
97,176
-
11,499
$
5
$
-
$
$
11,504
$
-
93,760
103,645
38
$
93,798
$
-
42
$
103,687
$
-
-
350,071
35,000
11,504
93,798
1,678,050
919,826
245,094
386,980
731,143
31,541
208,989
36,725
103,687
251,427
801
$
-
11,504
$
11,504
93,798
$
93,798
103,687
$
103,687
70
4,525,576
$
4,875,647
City of Pismo Beach
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance – Nonmajor Governmental Funds
June 30, 2014
Special Revenue
Local
Transportation
Streets
State Gas
Tax
Revenues:
Special assessments
Miscellaneous
Interest
Total revenues
$
303,229
$
200,085
PEG
$
13,626
5,000
705
205,790
659
303,888
Expenditures:
Current:
Community promotion
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
197
13,823
14,902
5,327
Excess (deficiency) of revenues over
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
-
14,902
5,327
303,888
190,888
8,496
-
-
(171,052)
(171,052)
132,836
190,888
8,496
252,082
263,874
97,583
$
384,918
71
$
454,762
$
106,079
Special Revenue
Noncapital
Grants
Local
Business
Improvement
$
$
100,000
Capital Projects
Chapman
House Estate
Public
Facilities
$
Park
Development
Circulation
Improvement
$
$
600
614,010
798,664
80
100,080
192,125
238
192,963
684
799,348
96
96
1,255
615,265
142
142
726,659
53,948
1,650
-
726,659
53,948
-
1,650
-
100,080
72,689
139,015
96
613,615
142
(124,132)
-
-
-
-
-
(24,052)
72,689
139,015
96
613,615
142
55,593
349,291
-
53,705
259,310
80,004
(124,132)
$
31,541
$
421,980
$
139,015
$
53,801
$
872,925
$
80,146
Continued
72
City of Pismo Beach
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance – Nonmajor Governmental Funds, Continued
June 30, 2014
Page 2
Capital Projects
Capital
Projects
Revenues:
Special assessments
Miscellaneous
Interest
Total revenues
$
Developer
Impact Fees
Underground
Utility
$
$
$
233,766
135,370
Expenditures:
Current:
Community promotion
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
2,722
236,488
275
275
6
6
1,000
-
-
235,488
275
6
107,014
1,000
436,007
543,021
(407,651)
Transfers in
Transfers out
sources (uses)
227,100
(1,987)
(126)
225,113
(126)
$
(21,000)
-
(21,000)
235,362
275
(20,994)
275,908
1,384,196
57,814
93,370
$ 1,619,558
(182,538)
135,370
Impact Fees
73
$
58,089
21,397
$
403
City of Pismo
Beach Public
Financing
Authority
Debt Service
Indio /
El Portal
Visalia
Assessment Assessment
District
District
Reassessment
Districts
Total
Nonmajor
Governmental
Funds
$
$
$
$
15
15
$
21
21
166
166
184
184
4,581
126,497
726,659
61,925
290,000
152,006
446,587
(446,572)
-
-
-
290,000
152,006
436,007
1,793,094
21
166
184
810,826
300,981
528,081
(318,297)
300,981
(145,591)
145,591
$
738,684
862,002
798,664
197,125
7,445
2,603,920
-
$
-
-
-
209,784
21
166
184
1,020,610
11,483
93,632
103,503
3,504,966
11,504
$
93,798
$
103,687
74
$
4,525,576
City of Pismo Beach
Gas Tax Fund
Budgeted Amounts
Original
Final
Revenues:
Intergovernmental
Interest
Total revenues
$
Transfers out
sources (uses)
$
258,497
258,497
258,497
303,229
659
303,888
258,497
258,497
303,888
45,391
(140,000)
(193,212)
(171,052)
22,160
(140,000)
(193,212)
(171,052)
22,160
118,497
65,285
132,836
67,551
252,082
252,082
252,082
-
370,579
75
$
$
258,497
Actual
317,367
$
Variance
with Final Budget
Positive (Negative)
$
384,918
$
$
44,732
659
45,391
67,551
City of Pismo Beach
Local Transportation Streets Fund
Budgeted Amounts
Original
Final
Revenues:
Intergovernmental
Miscellaneous
Interest
Total revenues
$
Expenditures:
Total expenditures
Transfers in
Transfers out
sources (uses)
$
$
202,975
1,000
203,975
$
200,085
5,000
705
205,790
$
(2,890)
4,000
705
1,815
14,902
14,902
14,902
14,902
14,902
14,902
-
189,073
189,073
190,888
1,815
-
202,975
1,000
203,975
Actual
Variance
with Final Budget
Positive (Negative)
(1,143)
-
1,143
(1,143)
-
1,143
189,073
187,930
190,888
2,958
263,874
263,874
263,874
-
452,947
76
$
451,804
$
454,762
$
2,958
City of Pismo Beach
PEG Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
15,000
15,000
13,626
197
13,823
Expenditures:
Total expenditures
7,500
7,500
19,500
19,500
5,327
5,327
-
7,500
(4,500)
8,496
(1,177)
-
-
-
-
-
-
-
-
7,500
(4,500)
8,496
(1,177)
97,583
97,583
97,583
-
Transfers in
sources (uses)
$
15,000
105,083
77
$
Actual
$
15,000
93,083
$
Variance
with Final Budget
Positive (Negative)
$
106,079
$
$
(1,374)
197
(1,177)
(1,177)
City of Pismo Beach
Budgeted Amounts
Original
Final
Revenues:
Intergovernmental
Interest
Total revenues
$
Transfers out
sources (uses)
$
100,000
100,000
100,000
100,000
80
100,080
100,000
100,000
100,080
80
(93,793)
(123,761)
(124,132)
(371)
(93,793)
(123,761)
(124,132)
(371)
6,207
(23,761)
(24,052)
(291)
55,593
55,593
55,593
61,800
78
$
$
100,000
Actual
31,832
$
Variance
with Final Budget
Positive (Negative)
$
31,541
$
80
80
$
(291)
City of Pismo Beach
Local Business Improvement Fund
Budgeted Amounts
Original
Final
Revenues:
Special assessments
Interest
Total revenues
$
Expenditures:
Community promotion
Total expenditures
734,400
$
734,400
734,400
798,664
684
799,348
644,997
644,997
735,317
735,317
726,659
726,659
8,658
8,658
$
$
64,264
684
64,948
89,403
(917)
72,689
73,606
89,403
(917)
72,689
73,606
349,291
-
349,291
$
734,400
Actual
Variance
with Final Budget
Positive (Negative)
438,694
79
349,291
$
348,374
$
421,980
$
73,606
City of Pismo Beach
Chapman House Estate
Budgeted Amounts
Original
Final
Revenues:
Charges for services:
Interest
Miscellaneous
Total revenues
$
Actual
-
192,600
192,600
600
238
192,125
192,963
Expenditures:
Professional services
Capital Outlay
Total expenditures
-
40,000
152,600
192,600
53,948
53,948
98,652
98,652
-
-
139,015
99,015
-
-
139,015
99,015
-
-
$
-
$
Variance
with Final Budget
Positive (Negative)
-
$
80
-
$
$
139,015
600
238
(475)
363
$
99,015
City of Pismo Beach
Public Facilities Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Actual
$
-
$
96
96
-
Transfers out
sources (uses)
-
(53,000)
-
(53,000)
53,705
53,705
$
$
53,705
81
$
705
96
96
96
96
(53,000)
Variance
with Final Budget
Positive (Negative)
53,000
-
53,000
96
53,096
53,705
$
53,801
$
53,096
City of Pismo Beach
Park Development Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
$
25,000
Expenditures:
Capital outlay
Total expenditures
4,315
Transfers out
sources (uses)
25,000
$
25,000
25,000
4,315
40,437
6,345
46,782
20,685
(21,782)
Actual
$
614,010
1,255
615,265
Variance
with Final Budget
Positive (Negative)
$
1,650
589,010
1,255
590,265
1,650
38,787
6,345
45,132
613,615
635,397
(60,000)
-
60,000
-
(60,000)
-
60,000
20,685
(81,782)
613,615
259,310
259,310
259,310
279,995
82
$
177,528
$
872,925
695,397
$
695,397
City of Pismo Beach
Capital Outlay Fund
Budgeted Amounts
Original
Final
Revenues:
Intergovernmental
Miscellaneous:
Total revenues
Expenditures:
Capital outlay
Total expenditures
Transfers in
Transfers out
sources (uses)
$
$ 2,262,214
Actual
2,262,214
135,370
(2,126,844)
(2,126,844)
866,441
820,796
1,687,237
968,936
4,587,033
5,555,969
107,014
436,007
543,021
861,922
4,151,026
5,012,948
(1,687,237)
(3,293,755)
(407,651)
2,886,104
941,000
3,290,345
227,100
(1,987)
(3,063,245)
(1,987)
941,000
3,290,345
225,113
(3,065,232)
-
(746,237)
(3,410)
275,908
$ (470,329)
83
$
272,498
$
(182,538)
275,908
$
135,370
Variance
with Final Budget
Positive (Negative)
(179,128)
275,908
$
93,370
$
(179,128)
City of Pismo Beach
Circulation Improvement Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Actual
$
$
-
-
$
-
-
80,004
80,004
80,004
84
$
80,004
142
142
Variance
with Final Budget
Positive (Negative)
$
142
142
142
142
80,004
$
142
142
80,146
$
142
City of Pismo Beach
Impact Fees Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
$
Actual
3,000
3,000
3,000
3,000
$
233,766
2,722
236,488
Expenditures:
Community Development
Total expenditures
1,000
1,000
1,000
1,000
1,000
1,000
2,000
2,000
235,488
Variance
with Final Budget
Positive (Negative)
$
233,766
(278)
233,488
-
233,488
Transfers out
sources (uses)
(25,000)
(540,000)
(126)
539,874
(25,000)
(540,000)
(126)
539,874
(23,000)
(538,000)
1,384,196
$ 1,361,196
85
$
235,362
1,384,196
1,384,196
846,196
$ 1,619,558
773,362
$
773,362
City of Pismo Beach
Developer Impact Fees Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Actual
$
-
$
-
$
-
-
57,814
57,814
57,814
86
$
57,814
275
275
Variance
with Final Budget
Positive (Negative)
$
275
275
275
275
57,814
$
275
275
58,089
$
275
City of Pismo Beach
Underground Utility Fund
Budgeted Amounts
Original
Final
Revenues:
Miscellaneous
Interest
Total revenues
$
Actual
$
-
Variance
with Final Budget
Positive (Negative)
$
-
-
$
-
6
6
6
6
6
6
Transfers out
sources (uses)
-
(21,000)
(21,000)
-
-
(21,000)
(21,000)
-
-
(21,000)
(20,994)
6
21,397
$
-
$
87
(21,000)
$
403
$
6
City of Pismo Beach
Budgeted Amounts
Original
Final
Revenues:
Loan interest
Loan proceeds
Interest
Total revenues
$
Expenditures:
Highways and Streets
Debt service:
Principal
Interest
Total expenditures
Transfers in
sources (uses)
$
152,006
148,624
300,630
$
Variance
with Final Budget
Positive (Negative)
Actual
152,006
148,624
300,630
$
-
$
15
15
(152,006)
(148,624)
15
(300,615)
2,331
2,331
4,581
2,250
290,000
152,006
444,337
290,000
152,006
444,337
290,000
152,006
446,587
2,250
(143,707)
(143,707)
(446,572)
(302,865)
-
-
300,981
300,981
-
-
300,981
300,981
(143,707)
(143,707)
(145,591)
(1,884)
145,591
145,591
145,591
-
1,884
88
$
1,884
$
-
$
(1,884)
City of Pismo Beach
Indio/El Portal Assessment District Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Actual
$
-
$
-
$
-
-
11,483
11,483
11,483
89
$
Variance
with Final Budget
Positive (Negative)
11,483
21
21
$
21
21
21
21
11,483
$
21
21
11,504
$
21
City of Pismo Beach
Visalia Assessment District Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Actual
-
$
-
$
166
166
-
-
166
Variance
with Final Budget
Positive (Negative)
$
166
166
166
Transfers out
sources (uses)
-
(85,000)
-
85,000
-
(85,000)
166
85,166
93,632
93,632
(85,000)
$
93,632
90
$
8,632
85,000
93,632
$
93,798
$
85,166
City of Pismo Beach
Reassessment Districts Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Actual
$
-
$
-
-
-
103,503
$
103,503
91
103,503
$
103,503
184
184
Variance
with Final Budget
Positive (Negative)
$
184
184
184
184
103,503
$
184
184
103,687
$
184
City of Pismo Beach
Nonmajor Proprietary Funds
June 30, 2014
The City maintains the following nonmajor proprietary funds:
Transit Fund is used to account for financial operations of the City’s subsidized transit system.
Pier Fund is used to account for operations and maintenance of the City’s pier located on the ocean front in
downtown Pismo Beach.
Parking Fund is used to account for parking revenues, downtown parking pay stations and metering
equipment, and related maintenance and operations.
92
City of Pismo Beach
Combining Statement of Fund Net Position – Nonmajor Proprietary Funds
June 30, 2014
Enterprise
Transit
Pier
Parking
Total
Nonmajor
Enterprise
Funds
$ 1,803,068
26,454
716
3,112
1,833,350
$ 1,809,261
26,954
717
3,112
1,840,044
Assets
Current assets:
Accounts receivable
Prepayments
$
5,058
$
1,135
500
1
5,059
Capital assets:
Land
Equipment
Pier
Less accumulated depreciation
Net capital assets
1,635
33,425
158,038
2,142,553
2,175,978
(1,220,933)
955,045
-
Total assets
158,038
(51,680)
106,358
33,425
158,038
2,142,553
2,334,016
(1,272,613)
1,061,403
5,059
956,680
1,939,708
2,901,447
5,056
4,091
1,134
9,147
1,134
7,798
6,864
8,729
23,391
13,988
10,955
8,729
33,672
9,147
1,134
23,391
33,672
955,045
501
106,358
1,809,959
1,061,403
1,806,372
955,546
$ 1,916,317
$ 2,867,775
Liabilities
Accounts payable
Accrued liabilities
Total liabilities
Net Position
Unrestricted
Total net position
(4,088)
$
(4,088)
93
$
City of Pismo Beach
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position – Nonmajor Proprietary Funds
Enterprise
Transit
Operating revenues:
Parking fees
Other operating revenues
Total operating revenues
Pier
$
Parking
$
Operating expenses:
Salaries and benefits
Maintenance and operations
Depreciation and amortization
Total operating expenses
Nonoperating revenues (expenses):
Loss on disposal of capital assets
Interest and investment revenue
Interest expense
Total nonoperating revenues (expenses)
$
8,100
8,100
14,105
14,105
551,567
551,567
22,205
573,772
10,762
10,762
35,774
44,632
80,406
158,949
154,580
16,304
329,833
158,949
201,116
60,936
421,001
(2,662)
(66,301)
221,734
152,771
3,137
3,137
3
3,137
3,140
224,871
155,911
3
3
Net income (loss) before
transfers
-
(2,659)
Transfers:
Transfers in
Transfers out
Total transfers
(66,301)
21,389
-
21,389
(2,659)
(44,912)
Net position - beginning of year
(1,429)
Net position - end of year
551,567
$
(4,088)
94
Total
Nonmajor
Enterprise
Funds
$
(371)
(371)
$
21,389
(371)
21,018
224,500
176,929
1,000,458
1,691,817
2,690,846
955,546
$ 1,916,317
$ 2,867,775
City of Pismo Beach
Combining Statement of Cash Flows – Nonmajor Proprietary Funds
Enterprise
Transit
Cash flows from operating activities:
Receipts from customers
Payments to employees for wages and benefits
Payments to suppliers for goods and services
$
Pier
8,100
$
Total
Nonmajor
Enterprise
Funds
Parking
14,386
$
(4,640)
(36,260)
556,658
(159,765)
(161,711)
3,460
(21,874)
235,182
$
579,144
(159,765)
(202,611)
216,768
Cash flows from noncapital financing activities:
Transfers in
Transfers out
noncapital financing
-
21,389
Cash flows from capital financing activities:
Purchases of capital assets
Net cash used in capital financing activities
-
-
-
-
Cash flows from investing activities:
Interest on investments
Net cash used in investing activities
2
2
-
3,246
3,246
3,248
3,248
238,057
241,034
1,620
1,565,011
1,568,227
$ 1,803,068
$ 1,809,261
$
$
21,389
Net change in cash and cash equivalents
3,462
Cash and cash equivalents - beginning of year
(485)
1,596
Cash and cash equivalents - end of year
$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities:
$
Adjustments to reconcile operating income (loss) to
Change in assets and liabilities:
Receivables
Prepayments
Accounts payable
Accrued liabilities
$
95
5,058
$
1,135
(2,662)
$
(66,301)
2,387
3,735
3,460
$
(371)
21,389
(371)
(371)
21,018
221,734
152,771
44,632
16,304
60,936
281
5,091
(486)
(8,129)
998
(816)
5,372
(6,228)
4,733
(816)
(21,874)
$
235,182
$
216,768
City of Pismo Beach
Comparative Schedule of Capital Assets
By Source
June 30, 2014
Capital assets used in government-wide activities:
Land
Buildings
Improvements
Equipment
Vehicles - internal service
Infrastructure - street system:
Right of way
Pavement system
Medians
Curbs and gutters
Sidewalks
Traffic signals
Street lights
Highway 101 interchange
Bridges
Infrastructure - beach stairways
Total capital assets used in government-wide activities
Investment in capital assets from:
General fund
Contributions from developers
Special revenue funds
Internal service fund
Capital projects fund
Total investment in capital assets
used in government-wide activities
96
2014
2013
$ 6,957,295
5,531,963
9,672,667
2,424,981
4,428,367
$ 6,957,295
5,531,963
9,672,667
2,223,058
3,833,386
5,068,528
40,382,479
73,232
521,095
313,961
229,723
1,212,168
2,726,214
26,829
313,194
652,197
5,068,528
38,415,794
73,232
521,095
313,961
229,723
1,212,168
2,726,214
26,829
313,194
2,294,708
$ 80,534,893
$ 79,413,815
$ 1,938,753
7,348,370
3,617,183
4,578,678
63,051,909
$ 1,857,433
7,348,370
3,617,183
3,866,500
62,724,329
$ 80,534,893
$ 79,413,815
City of Pismo Beach
Schedule of Changes in Capital Assets
By Source
June 30, 2014
Government-wide capital assets
June 30, 2013
Add:
Expenditures from:
Capital projects
Internal service
Deduct:
Retired/transferred
Government-wide capital assets
June 30, 2014
Right of Way
and Land
Infrastructure
Buildings
$ 12,025,823
$ 43,832,210
$ 5,531,963
Equipment,
Vehicles,
Improvements,
and CIP
$
1,966,685
$ 12,025,823
$ 45,798,895
97
18,023,819
$ 79,413,815
614,267
594,981
614,267
594,981
(2,054,855)
$ 5,531,963
$
Total Cost
17,178,212
(88,170)
$ 80,534,893
City of Pismo Beach
Schedule of Capital Assets
By Function and Activity
June 30, 2014
Function and Activity
General government:
General operations
Public safety
Parks and recreation
Street system and CIP
Beach stairway
Open space
Right of Way
and Land
$
319,942
5,566
4,376,379
5,068,529
Infrastructure
Buildings
Equipment,
Vehicles,
Improvements,
and CIP
Total Cost
$ 1,747,590
2,844,973
939,400
$
1,621,662
2,661,789
6,856,802
6,037,959
$
3,689,194
5,512,328
12,172,581
52,422,692
4,482,691
2,255,407
$ 5,531,963
$
17,178,212
$
80,534,893
41,316,204
4,482,691
2,255,407
$ 12,025,823
$ 45,798,895
98
City of Pismo Beach
Schedule of Changes in Capital Assets
By Function and Activity
June 30, 2014
Function and Activity
General government:
General operations
Public safety
Parks and recreation
Streets and CIP
Beach stairway
Open space
Balance
June 30, 2013
$
Additions
3,689,194
4,797,261
12,090,745
52,098,517
4,482,691
2,255,407
$
$ 79,413,815
$
99
Deletions
715,067
81,836
2,379,030
$
-
3,175,933
$ (2,054,855)
Balance
June 30, 2014
$
3,689,194
5,512,328
12,172,581
52,422,692
4,482,691
2,255,407
$
80,534,893
(2,054,855)
Statistical Section
City of Pismo Beach
Statistical Section
June 30, 2014
This part of the City of Pismo Beach’s comprehensive annual financial report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the city’s overall financial health.
Financial Trends – Schedules 1-4
These schedules contain trend information to help understand how the City’s financial performance and wellbeing have changed over time.
Revenue Capacity – Schedules 5-8F
These schedules contain information to help assess the City’s most significant local revenue source, the
revenues realized from the local transient occupancy tax. The City has also elected to provide revenue
capacity information about property tax revenues, sales tax revenues, water enterprise revenues, and
service fees of its wastewater enterprise.
Debt Capacity – Schedules 9-13
These schedules present information to help assess the affordability of the City’s current levels of
outstanding debt and the city’s ability to issue additional debt in the future.
Demographic and Economic Information – Schedules 14-16
These schedules offer demographic and economic indicators to help understand the environment within
which the City’s financial activities take place.
Operating Information – Schedules 17-18
These schedules contain service and infrastructure data to help understand how the information in the City’s
financial report relates to services the City provides and the activities it performs.
Bond Issue Continuing Disclosure – Schedules 19-21
These schedules contain continuing disclosure information for bond issuance.
101
Schedule 1
City of Pismo Beach
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
For the Fiscal Year Ended June 30
2009
2010
2005
2006
2007
2008
Restricted
Unrestricted
2011
2012
2013
2014
$ 30,089,956
8,331,642
7,682,459
$ 31,506,428
8,203,443
8,724,282
$ 31,385,546
10,340,434
10,323,815
$ 34,470,555
8,989,440
11,113,495
$ 40,830,144
7,506,507
10,862,199
$ 44,259,898
5,552,350
9,844,952
$ 42,143,882
5,502,365
12,818,923
$ 41,532,098
4,580,838
14,033,568
$ 41,657,581
3,157,166
15,577,727
$ 40,197,149
4,861,886
18,566,914
Total governmental activities net position
$ 46,104,057
$ 48,434,153
$ 52,049,795
$ 54,573,490
$ 59,198,850
$ 59,657,200
$ 60,465,170
$ 60,146,504
$ 60,392,474
$ 63,625,949
Restricted
Unrestricted
$ 14,962,938
590,373
4,310,707
$ 15,279,814
677,773
4,734,016
$ 14,936,177
780,233
5,275,531
$ 14,395,737
867,618
6,512,589
$ 14,913,641
964,062
9,239,666
$ 14,846,635
996,529
9,635,848
$ 14,555,227
1,006,954
10,172,270
$ 14,168,786
1,046,950
11,754,782
$ 18,715,142
979,157
9,608,168
$ 18,963,130
482,957
11,634,062
Total business-type activities net position
$ 19,864,018
$ 20,691,603
$ 20,991,941
$ 21,775,944
$ 25,117,369
$ 25,479,012
$ 25,734,451
$ 26,970,518
$ 29,302,467
$ 31,080,149
Primary government (City wide totals):
Restricted
Unrestricted
$ 45,052,894
8,922,015
11,993,166
$ 46,786,242
8,881,216
13,458,298
$ 46,321,723
11,120,667
15,599,346
$ 48,866,292
9,857,058
17,626,084
$ 55,743,785
8,470,569
20,101,865
$ 59,106,533
6,548,879
19,480,800
$ 56,699,109
6,509,319
22,991,193
$ 55,700,884
5,627,788
25,788,350
$ 60,372,723
4,136,323
25,185,895
$ 59,160,279
5,344,843
30,200,976
Total primary government net position
$ 65,968,075
$ 69,125,756
$ 73,041,736
$ 76,349,434
$ 84,316,219
$ 85,136,212
$ 86,199,621
$ 87,117,022
$ 89,694,941
$ 94,706,098
Note:
The City implemented GASB Statement No. 34 in the 2003 fiscal year. The information in this schedule is therefore set forth prospectively from the year of implementation.
102
Schedule 2
City of Pismo Beach
2005
Expenses:
General government
Police
Fire
Public works
Streets
Community Services
Redevelopment and Housing
Interest on long-term debt
Total governmental activities expenses
$
2,539,424
3,832,070
1,495,581
719,645
1,632,643
1,306,349
35,018
393,703
2006
$
3,028,986
4,095,962
1,673,442
732,548
1,901,366
2,053,754
168,091
324,013
2007
$
2,856,244
4,412,843
1,568,265
785,851
2,191,893
2,408,546
99,146
332,231
2008
$
3,379,303
4,533,502
1,621,824
878,172
2,679,287
2,479,015
195,906
344,477
For The Fiscal Year Ended June 30
2009
2010
$
3,880,596
5,184,560
1,665,396
1,408,778
1,543,671
3,655,274
694,471
249,067
$
4,572,394
4,370,052
1,749,148
756,867
1,965,141
2,773,862
992,959
198,015
2011
$
4,599,550
5,015,781
1,674,882
1,059,384
2,505,562
2,628,374
413,839
186,256
2012
$
5,510,343
5,220,437
1,697,174
860,974
2,649,438
2,929,011
97,790
175,533
2013
$
6,053,693
5,276,282
1,743,101
1,863,593
3,063,624
1,802,310
1,000
161,092
2014
$
5,860,017
4,949,673
2,020,895
1,870,369
2,668,703
1,983,046
500
151,162
11,954,433
13,978,162
14,655,019
16,111,486
18,281,813
17,378,438
18,083,628
19,140,700
19,964,695
19,504,365
Water
Wastewater
Pier
Parking
Transit
3,081,788
1,804,309
73,588
18,610
3,223,335
2,266,259
82,928
7,359
3,363,195
3,041,583
82,661
1,848
3,485,116
2,823,572
93,591
2,297
3,408,747
2,713,322
198,006
229,037
2,274
4,465,850
2,940,176
107,074
265,889
6,077
4,722,232
3,161,602
287,367
299,100
6,532
4,346,199
3,022,147
111,824
284,659
8,740
4,293,748
2,991,561
91,199
364,146
8,755
4,438,880
3,332,885
80,406
326,696
10,762
Total business-type activities expenses
4,978,295
5,579,881
6,489,287
6,404,576
6,551,386
7,785,066
8,476,833
7,773,569
7,749,409
8,189,629
$ 16,932,728
$ 19,558,043
$ 21,144,306
$ 22,516,062
$ 24,833,199
$ 25,163,504
$ 26,560,461
$ 26,914,269
$ 27,714,104
$ 27,693,994
Total City government expenses
Continued
103
Schedule 2
City of Pismo Beach
Changes in Net Position, Continued
Page 2
2005
Program Revenues:
General government
Police protection
Fire protection
Public works
Streets
Community Services
Redevelopment and Housing
$
Total governmental activities program revenues
Water
Wastewater
Pier
Parking
Transit
$
4,272,212
$
Total business-type activities programs revenues
Total City government program revenues
369,459
254,525
55,942
285,855
1,101,284
413,236
645,873
1,146,038
2006
2,482,658
2,294,407
13,810
6,886
519,000
351,129
9,940,102
$
4,257,320
$
5,667,890
$
446,454
276,477
33,174
143,034
1,067,802
285,503
629,776
1,375,100
2007
$
2,446,613
2,599,567
18,216
1,451
12,000
370,198
285,598
254,371
55,216
444,420
1,286,228
253,407
756,024
1,447,217
2008
$
4,782,481
$
2,748,466
2,911,775
20,037
977
12,000
5,980
363,937
198,014
10,024
404,988
1,271,359
264,851
1,041,554
858,709
2009
2010
$
4,413,436
$
3,064,099
3,012,292
16,845
960
7,238
163,964
349,405
193,897
60,672
414,064
1,579,236
156,920
640,334
5,306,814
$
8,701,342
$
3,375,620
3,186,444
13,918
649,184
1,602
1,167,565
1,020,708
126,702
25,136
146,656
1,049,444
91,804
475,389
676,094
2011
$
3,611,933
$
3,101,850
3,110,960
17,654
693,461
3
-
1,301,669
167,006
10,886
22,992
650,435
5,098
446,036
1,683,554
2012
$
4,287,676
$
3,391,156
3,323,502
15,113
521,227
(3)
-
1,462,725
115,155
10,576
144,198
1,135,056
86,264
692,373
1,333,881
2013
$
4,980,228
$
3,711,537
3,537,357
13,361
567,892
31,700
1,561,512
119,945
28,251
859,602
11,151
232,068
5,507
758,435
245,533
2014
$
3,822,004
$
3,459,033
3,572,531
14,024
515,675
6,505
-
1,762,469
134,343
48,104
1,511,764
33,950
838,828
66,410
653,736
303,229
5,352,833
$
3,920,594
3,848,743
14,105
551,567
8,103
-
5,448,045
5,699,235
6,265,398
8,394,333
6,923,928
7,250,995
7,861,847
7,567,768
8,343,112
9,705,365
$ 10,481,716
$ 10,678,834
$ 17,095,675
$ 10,535,861
$ 11,538,671
$ 12,842,075
$ 11,389,772
$ 13,695,945
Continued
104
Schedule 2
City of Pismo Beach
Page 3
2005
2006
2007
2008
2009
2010
Net Revenues (Expenses):
Governmental activities
Business-type activities
$
(7,682,221)
689,595
$
(9,720,842)
(131,836)
$
(9,872,538)
(790,052)
$ (11,698,050)
(139,178)
$
(9,580,471)
1,842,947
Total City government
$
(6,992,626)
$
(9,852,678)
$ (10,662,590)
$ (11,837,228)
$
(7,737,524)
$
2,937,753
570,689
2,134,638
5,295,777
738,257
58,595
201,501
34,751
78,977
-
$
$
$
3,910,044
760,156
2,813,264
5,906,838
759,922
341,644
25,049
(311,086)
-
General Revenues and Other Changes in Net Position:
Taxes:
Property taxes
$ 2,012,536
Incremental property taxes
428,709
Sales taxes
2,014,060
4,921,356
Other taxes
692,511
Unrestricted grants and contributions
707,015
Investment earnings
Miscellaneous
129,044
Transfers
(74,206)
Extraordinary item - RDA
Total governmental activities
10,831,025
12,050,938
3,449,754
626,984
2,375,881
5,912,443
733,950
51,793
302,603
34,772
13,488,180
3,660,083
648,468
2,402,092
6,175,013
751,763
321,612
36,559
226,155
14,221,745
2011
2012
2013
2014
$ (13,766,505)
(861,138)
$ (13,795,952)
(1,225,838)
$ (14,160,472)
88,278
$ (16,142,691)
(181,641)
$ (14,151,532)
153,483
$ (14,627,643)
$ (15,021,790)
$ (14,072,194)
$ (16,324,332)
$ (13,998,049)
$
$
$
$
$
3,846,298
334,095
3,136,677
5,779,601
710,977
394,594
32,205
(9,592)
-
3,803,530
346,178
3,379,575
6,269,608
707,450
272,846
44,214
(219,479)
-
14,205,831
14,224,855
14,603,922
3,763,419
172,829
3,511,091
6,931,197
778,402
233,627
143,770
(1,692,529)
13,841,806
4,015,999
3,905,814
7,279,501
848,095
137,101
26,409
16,212,919
4,193,186
4,104,284
7,988,237
863,698
142,180
93,422
17,385,007
Special Water Taxes
Transfers
569,039
74,206
1,038,399
(78,977)
1,125,162
(34,772)
1,149,336
(226,155)
1,187,392
311,086
1,213,189
9,592
1,261,798
219,479
1,291,559
(143,770)
1,543,588
(26,409)
1,717,621
(93,422)
Total business-type activities
643,245
959,422
1,090,390
923,181
1,498,478
1,222,781
1,481,277
1,147,789
1,517,179
1,624,199
$ 11,474,270
$ 13,010,360
$ 14,578,570
$ 15,144,926
$ 15,704,309
$ 15,447,636
$ 16,085,199
$ 14,989,595
$ 17,730,098
$ 19,009,206
Continued
105
Schedule 2
City of Pismo Beach
Page 4
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Change in net position:
Governmental activities
$
3,148,804
1,332,840
$
2,330,096
827,586
$
3,615,642
300,338
$
2,523,695
784,003
$
4,625,360
3,341,425
$
458,350
361,643
$
807,970
255,439
$
(318,666)
1,236,067
$
70,228
1,335,538
$
3,233,475
1,777,682
$
4,481,644
$
3,157,682
$
3,915,980
$
3,307,698
$
7,966,785
$
819,993
$
1,063,409
$
917,401
$
1,405,766
$
5,011,157
Note:
The City implemented GASB Statement No. 34 in the 2003 fiscal year. The information in this schedule is therefore set forth prospectively from the year of implementation.
106
Schedule 3
City of Pismo Beach
Fund Balance, Governmental Funds
2005
General fund:
Reserved
Unreserved
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds:
Reserved
Unreserved reported in:
Special revenue funds
Capital projects funds
Debt service funds
Nonspendable
Restricted
Committed
Assigned
Total all other governmental
funds
Total all governmental funds
$
329,866
5,507,435
-
2006
$
495,570
5,684,945
-
2007
$
412,243
6,897,149
-
2008
$
327,779
7,856,880
-
For the Fiscal Year Ended June 30
2009
2010
$
830,542
8,058,030
-
$
1,171,483
8,345,169
-
2011
$
2012
768,088
190,575
7,265,958
714,379
$
2013
462,005
141,756
7,665,163
2,141,222
$
2014
965,312
204,139
6,103,064
3,361,546
$
88,805
9,592,749
4,825,898
5,837,301
6,180,515
7,309,392
8,184,659
8,888,572
9,516,652
8,939,000
10,410,146
10,634,061
14,507,452
969,723
828,046
1,185,985
1,121,665
606,929
606,763
-
-
-
-
3,172,562
3,729,906
318,451
-
3,681,329
3,608,605
323,327
-
4,696,475
5,114,969
354,902
-
5,292,650
2,991,373
101,390
-
4,423,051
3,051,831
105,231
-
1,640,880
3,752,951
117,314
-
5,502,365
126,295
368,032
2,873,709
276,240
40,000
3,157,166
236,068
35,000
4,861,886
288,953
-
8,190,642
8,441,307
11,352,331
9,507,078
8,187,042
6,117,908
5,996,692
3,149,949
3,433,234
5,185,839
$ 14,027,943
$ 14,621,822
$ 18,661,723
$ 17,691,737
$ 17,075,614
$ 15,634,560
$ 14,935,692
$ 13,560,095
$ 14,067,295
$ 19,693,291
107
Schedule 4
City of Pismo Beach
Revenues, Expenditures and Changes in Fund Balance, Governmental Funds
and Debt Service Ratio
(In Rounded Thousands of Dollars)
(Modified Accrual Basis of Accounting)
Revenues:
Taxes
Licenses and permits
Fines and forfeits
Special assessments
Intergovernmental
Investment earnings
Other revenues
Total revenues
Expenditures:
General government
Public safety
Parks
Planning and
Public Works
Recreation
Capital outlay
Debt service:
Payment to escrow agent
Costs of issuance
Principal
Interest
Total expenditures
2008
2009
2010
2011
2005
2006
2007
2012
2013
2014
$ 10,069
848
122
884
1,317
307
40
$ 11,677
497
142
1,289
36
950
511
219
$ 13,099
972
139
1,083
35
2,054
850
29
$ 13,637
950
149
1,029
16
1,138
826
669
$ 14,150
1,231
137
904
1,487
724
64
$ 13,456
872
100
951
411
1,247
447
41
$ 14,506
477
97
873
624
2,190
332
12
$ 15,157
886
82
1,147
686
1,984
269
110
$ 16,369
814
64
320
728
1,129
261
616
$ 17,136
1,355
67
1,168
799
927
289
1,414
13,587
15,321
18,261
18,414
18,697
17,525
19,111
20,321
20,301
23,155
2,529
5,231
2,844
5,728
3,114
5,898
3,392
6,074
3,624
6,317
4,635
6,445
4,801
6,574
4,860
6,792
5,926
6,856
5,488
6,823
3,805
1,007
27
3,526
3,524
4,077
4,950
4,772
4,187
5,659
3,791
4,160
1,576
1,754
5,197
1,941
2,369
3,258
3,115
2,508
436
-
221
328
26
212
225
243
130
340
260
259
280
200
250
187
270
176
275
162
290
152
12,599
14,223
14,996
19,210
17,351
18,701
19,257
20,872
19,518
17,349
Continued
108
Schedule 4
City of Pismo Beach
Revenues, Expenditures and Changes in Fund Balance, Governmental Funds
and Debt Service Ratio, Continued
(In Rounded Thousands of Dollars)
(Modified Accrual Basis of Accounting)
Page 2
2005
Excess of revenues
over(under)
expenditures
Other Financing
Sources(Uses):
Proceeds from borrowing
Payments to escrow agent
Early redemption of bonds
Transfers in
Transfers out
2006
988
8,105
(6,355)
2,552
(2,433)
sources(uses)
1,869
Extraordinary item:
Dissolution of RDA
-
Net change in fund
balance
Debt service as a
percentage of noncapital
expenditures
$ 2,857
0.00%
1,098
3,265
1,937
(2,444)
5,185
(4,045)
2,592
(2,956)
(507)
$
2008
2009
2010
2011
2007
130
4,962
(5,265)
776
-
-
591
$ 4,041
4.54%
(796)
3.73%
(173)
-
$
(969)
3.47%
109
2012
2013
2014
1,346
(1,176)
(146)
(551)
1,438
1,769
(2,292)
2,862
(3,127)
2,689
(3,242)
2,686
(2,819)
2,825
(3,101)
825
(1,099)
(265)
(553)
(133)
(276)
(274)
915
-
$ 2,261
3.49%
-
$ (1,441)
3.03%
-
$
783
(692)
(699)
$ (1,376)
2.81%
2.58%
$
5,806
-
-
507
$ 5,532
2.64%
2.68%
Schedule 5
City of Pismo Beach
Assessed Value and Estimated Actual Value of Taxable Property
(In Thousands of Dollars)
Fiscal
Year
Assessed Taxable Values
Real
Personal
Property
Property
Totals
Total Direct
Tax Rate
Estimated
Actual
Taxable Value
Assessed Value
as a Percentage
of Actual Value
2004-2005
1,614,178
23,067
1,637,245
1.00%
4,068,398
40.24%
2005-2006
1,799,044
34,393
1,833,437
1.00%
4,546,743
40.32%
2006-2007
2,009,954
38,802
2,048,756
1.00%
5,080,316
40.33%
2007-2008
2,219,577
41,672
2,261,249
1.00%
5,608,474
40.32%
2008-2009
2,381,414
37,444
2,418,858
1.00%
6,007,026
40.27%
2009-2010
2,400,005
37,086
2,437,091
1.00%
6,052,993
40.26%
2010-2011
2,389,311
37,245
2,426,556
1.00%
6,026,485
40.26%
2011-2012
2,364,711
36,417
2,401,128
1.00%
5,963,802
40.26%
2012-2013
2,374,635
36,736
2,411,371
1.00%
5,989,068
40.26%
2013-2014
2,454,598
39,670
2,494,268
1.00%
6,193,166
40.27%
Source: SLO County Assessors Office, and HDL Reports. Amounts for Fiscal years 2005 through 2007
adjusted to data from HDL reports in Fiscal year 2008.
110
Schedule 6
City of Pismo Beach
Direct and Overlapping Property Tax Rates
(Rates per $100 of Assessed Value)
Fiscal
Year
Basic
Rate
Direct Rate
General
Obligation
Debt Rate
Overlapping Rates
Total
School
Districts
Special
Districts
Total
2004-2005
1.00%
0.00%
1.00%
0.0325%
0.0161%
1.0485%
2005-2006
1.00%
0.00%
1.00%
0.0202%
0.0133%
1.0335%
2006-2007
1.00%
0.00%
1.00%
0.0193%
0.0124%
1.0317%
2007-2008
1.00%
0.00%
1.00%
0.0285%
0.0119%
1.0404%
2008-2009
1.00%
0.00%
1.00%
0.0285%
0.0119%
1.0404%
2009-2010
1.00%
0.00%
1.00%
0.0285%
0.0119%
1.0404%
2010-2011
1.00%
0.00%
1.00%
0.0291%
0.0126%
1.0418%
2011-2012
1.00%
0.00%
1.00%
0.0298%
0.0127%
1.0426%
2012-2013
1.00%
0.00%
1.00%
0.0395%
0.0139%
1.0534%
2013-2014
1.00%
0.00%
1.00%
0.0399%
0.0139%
1.0539%
Note:
The direct property tax rates can only be changed with specific voter approval. Updated
information dating back to FY 2000.
Source: HDL Reports.
111
Schedule 7
City of Pismo Beach
Principal Property Tax Payers – Top Ten
(Dollar Amounts in Thousands)
2014
Taxpayer
Martin Resorts, Inc.
Prime Outlets of Pismo Beach
Pismo Beach Mobilehome Park
Core Pismo, LLC
Spalding G. Wathen, Inc.
Heron Crest Development
Cliffs Resort, LLC
Pismo Coast Plaza, LLC
K Partners Pismo Beach LP
Pismo Development Group, LLC
Taxable
Assessed
Value
$
33,959
28,919
24,645
23,620
21,058
15,648
14,948
14,862
11,773
10,610
Total
$
2013
Rank
1
2
3
4
5
6
7
8
9
10
200,042
Percentage of
Total City
Taxable
Assessed Value
1.36%
1.16%
0.99%
0.95%
0.84%
0.63%
0.60%
0.60%
0.47%
0.43%
8.02%
Taxpayer
Spalding G. Wathen
Core Pismo, LLC
Cliffs Resort, LLC
Pismo Coast Plaza LLC
Kingfisher Canyon Development
Taxable
Assessed
Value
$
33,311
27,485
23,600
22,778
19,335
15,341
14,675
13,532
12,068
11,798
Total
$
2012
Taxpayer
Spalding G. Wathen
Core Pismo, LLC
Cliffs Resort, LLC
Taxable
Assessed
Value
$
32,676
27,068
23,888
22,827
19,335
15,041
14,406
13,335
12,108
11,524
Total
$
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total City
Taxable
Assessed Value
1.36%
1.13%
0.99%
0.95%
0.81%
0.63%
0.60%
0.56%
0.50%
0.48%
8.00%
Taxpayer
Spalding G. Wathen
Core Pismo, LLC
Cliffs Resort, LLC
Taxable
Assessed
Value
$
33,751
26,867
24,243
23,710
22,575
14,928
14,306
13,262
12,197
11,343
Total
$
2010
Taxpayer
Spalding G. Wathen
Core Pismo, LLC
Cliffs Resort, LLC
MP Pismo Investments LLC
Total
$
196,726
193,923
8.04%
2011
192,208
Taxable
Assessed
Value
$
33,829
26,930
23,904
23,766
22,716
14,964
14,338
13,285
11,628
11,366
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total City
Taxable
Assessed Value
1.38%
1.14%
0.98%
0.94%
0.80%
0.64%
0.61%
0.56%
0.50%
0.49%
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total City
Taxable
Assessed Value
1.39%
1.11%
1.00%
0.98%
0.93%
0.62%
0.59%
0.55%
0.50%
0.47%
197,182
8.13%
2009
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total City
Taxable
Assessed Value
1.39%
1.11%
0.98%
0.98%
0.93%
0.61%
0.59%
0.55%
0.48%
0.47%
8.07%
Taxpayer
Spalding G. Wathen
Core Pismo, LLC
Cliffs Resort, LLC
175 Pomeroy, LLC
Pismo Hotel Properties
Taxable
Assessed
Value
$
33,184
25,203
23,300
22,290
22,026
15,141
14,176
13,093
12,000
11,173
Total
$
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total City
Taxable
Assessed Value
1.37%
1.04%
0.96%
0.92%
0.91%
0.63%
0.59%
0.54%
0.50%
0.46%
191,586
7.92%
Continued
112
Schedule 7
City of Pismo Beach
Principal Property Tax Payers – Top Ten, Continued
Page 2
2008
Taxpayer
Second Horizon Group
Pismo Coast Plaza
Pacplaza Properties LP
Pismo Medical Campus
Pismo Hotel Properties
921 Oak Park Investors
Nicholas J. & Kathleen Tompkins
Osh Properties LLC
Coastal Surgical Specialists
Spalding G. Wathen
Taxable
Assessed
Value
$
24,531
12,905
7,807
6,386
6,367
4,714
4,110
3,953
3,336
22,843
Total
$
2007
Rank
1
2
3
4
5
6
7
8
9
10
96,952
Percentage of
Total City
Taxable
Assessed Value
1.08%
0.57%
0.35%
0.28%
0.28%
0.21%
0.18%
0.17%
0.15%
1.01%
4.29%
Taxpayer
Pismo Medical Campus LLC
921 Oak Park Investors
Nicholas J. & Kathleen Tompkins
Osh Properties LLC
Five Cities Company Brand LLC
Taxable
Assessed
Value
$
24,052
12,720
7,654
6,261
30,692
4,622
4,029
3,876
3,279
2,826
Total
$
2006
Taxpayer
Second Horizon Group LP
Pismo Medical Campus LLC
Big 5 Corporation
Osh Properties LLC
Radiology Associates of SLO
Taxable
Assessed
Value
$
21,100
12,540
10,669
7,504
30,781
26,929
3,950
3,920
3,089
2,974
Total
$
123,456
Rank
1
2
3
4
5
6
7
8
9
10
100,011
Percentage of
Total City
Taxable
Assessed Value
1.17%
0.62%
0.37%
0.31%
1.50%
0.23%
0.20%
0.19%
0.16%
0.14%
4.88%
2005
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total City
Taxable
Assessed Value
1.15%
0.68%
0.58%
0.41%
1.68%
1.47%
0.22%
0.21%
0.17%
0.16%
6.73%
113
Taxpayer
Second Horizon Group LP
Nicholas & Kathleen Tomkins
Charles H. Kamm
Martin Resorts Inc.
Orchard Supply Hardware
Pismo Beach Mobile Home Park
Longs Drugs Stores
John A. Benson Trust
Robert & Tracie Tachovsky
Taxable
Assessed
Value
$
19,000
10,354
7,647
7,357
30,196
3,829
22,553
2,976
2,702
2,400
Total
$
109,014
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total City
Taxable
Assessed Value
1.16%
0.63%
0.47%
0.45%
1.84%
0.23%
1.38%
0.18%
0.17%
0.15%
6.66%
Schedule 8
City of Pismo Beach
Property Tax Levies and Collections
Fiscal
Year
Collected Within The
Fiscal Year of The Levy
Percentage
of
Amount
Levy
Taxes Levied
For The
Fiscal Year
2004-2005
2,012,536
2,012,536
100.00%
2005-2006
2,937,753
2,937,753
100.00%
2006-2007
3,449,754
3,449,754
100.00%
2007-2008
3,660,083
3,660,083
100.00%
2008-2009
3,910,044
3,910,044
100.00%
2009-2010
3,494,959
3,494,959
100.00%
2010-2011
3,803,530
3,803,530
100.00%
2011-2012
3,763,419
3,763,419
100.00%
2012-2013
4,015,999
4,015,999
100.00%
2013-2014
4,193,186
4,193,186
100.00%
Note:
Property taxes are levied and collected pursuant to an
arrangement commonly referred to as the Teeter Plan. Under the
Teeter Plan, the County allocates and remits to the City the full
amount of each years tax levy, and the County then retains any
delinquencies as collected by the County. Amount for 2010 is
less the Prop 1A Loan in the amount of $351,339.
Source: City of Pismo Beach Tax Collection records and San
Luis Obispo County Assessor records.
114
Schedule 8 A
City of Pismo Beach
Sales Tax Revenue Base Data
Fiscal
Year
Revenue Base
City-Wide
Retail Sales
Subject to Tax
Total
Retail
Sales
Tax Rate
City
Direct
Tax Rate
City
Transaction
Tax Rate
Revenue
Recognized
By the City
2004-2005
177,224,300
7.25%
1.00%
0.00%
2,014,060
2005-2006
185,660,400
7.25%
1.00%
0.00%
2,134,638
2006-2007
217,126,100
7.25%
1.00%
0.00%
2,375,881
2007-2008
194,413,600
7.25%
1.00%
0.00%
2,402,092
2008-2009
206,556,700
8.25%
1.00%
0.50%
2,813,264
2009-2010
190,984,200
8.25%
1.00%
0.50%
3,136,677
2010-2011
192,386,300
8.25%
1.00%
0.50%
3,379,575
2011-2012
214,465,200
7.25%
1.00%
0.50%
3,511,091
2012-2013
248,116,800
7.50%
1.00%
0.50%
3,905,814
2013-2014
268,253,800
7.50%
1.00%
0.50%
4,104,284
Note:
The City's direct retail sales tax rate is established pursuant to the City's Municipal
Code. Any increase in the City's direct tax rate requires voter approval. Transaction Tax
approved by voters in June 2008, effective October 1, 2008.
Source: Revenue Base Information provided by HDL. Revenue information from City of
Pismo Beach records.
115
Schedule 8 B
City of Pismo Beach
Principal Sales Tax Generators by Industry – Revenue Base Concentration Data
Last Ten Calendar Years
2013
Industry
Apparel Stores
Restaurants
All Other Outlets
Other Retail Stores
Service Stations
Food Stores
Retail
Sales
Generated
$
70,849
65,271
42,195
40,864
35,189
7,543
Total
$
2012
Rank
1
2
3
4
5
6
261,911
Percentage of
Total City
Retail
Sales Dollars
27.05%
24.92%
16.11%
15.60%
13.44%
2.88%
100.00%
Industry
Apparel Stores
Restaurants
All Other Outlets
Service Stations
Other Retail Stores
Food Stores
Retail
Sales
Generated
$
67,119
62,275
37,372
36,562
35,176
5,191
Total
$
2011
Industry
Apparel Stores
Restaurants
All Other Outlets
Other Retail Stores
Service Stations
Food Stores
Retail
Sales
Generated
$
61,101
57,789
37,913
35,410
35,319
6,586
Total
$
Rank
1
2
3
4
5
6
Percentage of
Total City
Retail
Sales Dollars
26.10%
24.68%
16.19%
15.12%
15.09%
2.81%
100.00%
Industry
Apparel Stores
Restaurants
Other Retail Stores
All Other Outlets
Service Stations
Food Stores
Retail
Sales
Generated
$
55,409
54,681
33,842
33,354
29,592
6,709
Total
$
2009
Industry
Apparel Stores
Restaurants
Other Retail Stores
All Other Outlets
Service Stations
Food Stores
Total
$
210,201
243,695
100.00%
2010
234,118
Retail
Sales
Generated
$
53,576
52,845
36,225
34,234
26,249
7,072
Rank
1
2
3
4
5
6
Percentage of
Total City
Retail
Sales Dollars
27.54%
25.55%
15.34%
15.00%
14.43%
2.13%
Rank
1
2
3
4
5
6
213,587
Percentage of
Total City
Retail
Sales Dollars
25.94%
25.60%
15.84%
15.62%
13.85%
3.14%
100.00%
2008
Rank
1
2
3
4
5
6
Percentage of
Total City
Retail
Sales Dollars
25.49%
25.14%
17.23%
16.29%
12.49%
3.36%
100.00%
Industry
Restaurants
Apparel Stores
Other Retail Stores
All Other Outlets
Service Stations
Food Stores
Retail
Sales
Generated
$
54,014
49,407
47,617
40,107
33,186
7,472
Total
$
231,803
Rank
1
2
3
4
5
6
Percentage of
Total City
Retail
Sales Dollars
23.30%
21.31%
20.54%
17.30%
14.32%
3.22%
0.00%
100.00%
Continued
116
Schedule 8 B
City of Pismo Beach
Principal Sales Tax Generators by Industry – Revenue Base Concentration Data, Continued
Last Ten Calendar Years
Page 2
2007
Industry
Restaurants
Apparel Stores
Other Retail Stores
All Other Outlets
Service Stations
Food Stores
Retail
Sales
Generated
$
56,581
48,324
45,204
41,341
32,011
7,843
Total
$
2006
Rank
1
2
3
4
5
6
231,304
Percentage of
Total City
Retail
Sales Dollars
Industry
24.46% Restaurants
20.89% Other Retail Stores
19.54% Apparel Stores
17.87% All Other Outlets
13.84% Service Stations
3.39% Food Stores
100.00%
Total
Retail
Sales
Generated
$
55,469
47,210
45,304
41,505
28,205
7,996
$
2005
Industry
Restaurants
Other Retail Stores
Apparel Stores
All Other Outlets
Service Stations
Food Stores
Retail
Sales
Generated
$
53,214
45,792
38,295
35,046
27,944
7,622
Total
$
207,913
Rank
1
2
3
4
5
6
225,689
Percentage of
Total City
Retail
Sales Dollars
24.58%
20.92%
20.07%
18.39%
12.50%
3.54%
100.00%
2004
Rank
1
2
3
4
5
6
Percentage of
Total City
Retail
Sales Dollars
25.59%
22.02%
18.42%
16.86%
13.44%
3.67%
100.00%
Industry
Restaurants
Other Retail Stores
Apparel Stores
All Other Outlets
Service Stations
Food Stores
Retail
Sales
Generated
$
48,126
44,166
34,715
31,643
25,312
9,837
Total
$
193,799
Source: HDL Reports. Changed years from fiscal to calendar in FY 2011 report.
Amounts for CY 2012 reflect a change in reporting by HDL to reflect fewer differentiated Categories.
Amounts for CY 2013 reflect a change in reporting by HDL to reflect fewer differentiated Categories for all years.
117
Rank
1
2
3
4
5
6
Percentage of
Total City
Retail
Sales Dollars
24.83%
22.79%
17.91%
16.33%
13.06%
5.08%
100.00%
Schedule 8 B-1
City of Pismo Beach
Principal Sales Tax Payers – Top 25
(In Alphabetical Order)
Fiscal Year Ended June 30
2014
Arco
Brads Restaurant
California Fresh
Calvin Klein
Cliffs at Shell Beach
Coach
Cracked Crab
CVS Pharmacy
Dolphin Bay Hotel & Lido Rest.
McLintocks
Five Cities Chevron
Giuseppes Cucina
Miller 76
Nike Retail
Orchard Supply Hardware #1
Orchard Supply Hardware #2
Oshkosh B Gosh
Ralph Lauren
Ross
Shell
Sky River RV
Splash Café
Spyglass Shell
Vans
Ventana Grill
2013
2012
7 Eleven
Arco
Bass Outlet
Brads Restaurant
Coach
Cracked Crab
CVS Pharmacy
Five Cities Chevron
Giuseppes Cucina
McLintocks
Miller 76
Nike Retail
Oshkosh B Gosh
Panchos Surf Shop
Pierside Restaurant
Polo Ralph Lauren
Ross
Scolari's
Shell
Sky River RV
Splash Café
Spyglass Shell
Ventana Grill
7 Eleven
Arco
Bass Outlet
Brads Restaurant
Calvin Klein
Coach
Cracked Crab
CVS Pharmacy
Five Cities Chevron
Giuseppes Cucina
McLintocks
Miller 76
Nike Retail
Oshkosh B Gosh
Panchos Surf Shop
Ralph Lauren
Ross
Shell
Sky River RV
Splash Café
Spyglass Shell
Ventana Grill
2011
7 Eleven
Arco
Bass Outlet
Brads Restaurant
Cracked Crab
CVS Pharmacy
Five Cities Chevron
Giuseppes Cucina
McDonalds
McLintocks
Miller 76
Nike Retail
Oshkosh B Gosh
Pacific Coast RV
Panchos Surf Shop
Polo Ralph Lauren
Rite Aid
Ross
Scolaris
Shell
Splash Café
Spyglass Shell
Ventana Grill
2010
7 Eleven
Arco
Bass Outlet
Brads Restaurant
Calvin Klein
Cracked Crab
CVS Pharmacy
Five Cities Chevron
Giuseppes Cucina
McLintocks
Miller 76
Nike Retail
Oshkosh B Gosh
Pacific Sunwear Outlet
Panchos Surf Shop
Pismo RV Outlet
Polo Ralph Lauren
Rite Aid
Ross
Scolar'is
Splash Café
Spyglass Shell
Valley Convenience Stores
2009
2008
7 Eleven
Arco
Brads Restaurant
Cracked Crab
Five Cities Chevron
Giuseppes Cucina
Longs Drug
F McLintocks
Miller's Unocal
Oshkosh B Gosh
Pancho's Surf Shop
Pierside Seafood
Polo Ralph Lauren
Ross
Scolari's
Shelter Cove Lodge
Splash Café
Spyglass Shell
Trailer Hitch RV Center
Van Heusen Direct
Yanagi Sushi & Grill
7 Eleven
Arco
Bass Outlet
Brads Restaurant
Cracked Crab
Five Cities Chevron
Giuseppes Cucina
Jones New York
McLintocks
Miller 76
Oshkosh B Gosh
Panchos Surf Shop
Pismo RV Outlet
Polo Ralph Lauren
Rite Aid
Ross
Scolari's
Shelter Cove Lodge
Splash Café
Spyglass Shell
2007
7 Eleven
Arco
Brad's Restaurant
Central Coast Oil
Cliffs At Shell Beach
Five Cities Chevron
Giuseppe's Cucina
Longs Drug
F McLintocks
Miller's Unocal
Oshkosh B Gosh
Pancho's Surf Shop
Pierside Seafood
Polo Ralph Lauren
Ross
Scolari's
Shell Beach Motel
Splash Café
Van Heusen Direct
Westinghouse Electric
Continued
118
Schedule 8 B-1
City of Pismo Beach
Principal Sales Tax Payers – Top 25
Page 2
2006
7 Eleven
Brad's Restaurant
Five Cities Chevron
Giuseppe's Cucina
Jones New York
Longs Drug
Marie Callenders
F McLintocks
Miller's Unocal
Pancho's Surf Shop
Pierside Seafood
Pismo Beach AM PM
Rite Aid
Rosa's Ristorante Italiano
Ross
Scolari's
Shell Beach Motel
Van Heusen Direct
Walt's Mobil
2005
7 Eleven
Brad's Restaurant
F McLintocks
Five Cities Chevron
Giuseppe's Cucina
Jones New York
Levis Outlet
Longs Drug
Marie Callenders
Miller's Unocal
Pancho's Surf Shop
Pierside Seafood
Pismo Beach AM PM
Rite Aid
Scolari's
Shell Beach Motel
Splash Café
Spyglass Shell
Van Heusen Direct
Walt's Mobil
Note: Principal Sales Tax payers provided by HDL.
119
Schedule 8 C
City of Pismo Beach
Transient Occupancy Tax Revenue Base Data
Fiscal
Year
Revenue Base
Room Revenues
Subject to Tax
City
Direct
Tax Rate
Revenue
Recognized
By the City
2004-2005
49,213,560
10.00%
4,921,356
2005-2006
52,954,765
10.00%
5,295,476
2006-2007
59,124,431
10.00%
5,912,443
2007-2008
61,750,130
10.00%
6,175,013
2008-2009
59,068,380
10.00%
5,906,838
2009-2010
57,795,945
10.00%
5,779,594
2010-2011
62,696,071
10.00%
6,269,607
2011-2012
69,311,970
10.00%
6,931,197
2012-2013
72,795,011
10.00%
7,279,501
2013-2014
79,882,370
10.00%
7,988,237
Note:
The transient occupancy tax can only be changed by
approval of the voters, and the rate was increased in 1992.
Source: Revenue information provided by City of Pismo
Beach records.
120
Schedule 8 D
City of Pismo Beach
Principal Transient Occupancy Tax Payers and Other Data
Transient Occupancy Tax Revenues
In Dollars
Concentration By Hotel Size
Based on Number of Rooms
Number Hotels
Number Hotels
50 or More Rooms
Under 50 Rooms
Fiscal
Year
City-Wide
Occupancy
Rate
Average
Daily Room
Rates
2004-2005
No Data
No Data
$
2005-2006
No Data
No Data
$
2006-2007
No Data
No Data
$
2007-2008
No Data
No Data
$
2008-2009
No Data
No Data
$
2009-2010
No Data
No Data
$
2010-2011
No Data
No Data
$
2011-2012
No Data
No Data
$
2012-2013
No Data
No Data
$
2013-2014
No Data
No Data
$
4,159,280
22
4,482,261
20
4,678,552
16
5,234,272
18
4,681,899
16
4,864,506
17
5,286,868
17
5,867,792
17
6,165,294
17
6,754,657
17
$
$
$
$
$
$
$
$
$
$
474,156
19
525,028
20
645,499
14
392,052
14
643,383
16
340,365
14
375,674
15
417,423
15
411,261
15
418,059
12
Transient Occupancy Tax Revenues
In Dollars
Concentration By Size
RV Park/Vacation Rentals
Based on Number of Units
Number Units
Number Units
50 or More
Under 50
2006-2007
No Data
No Data
$
2007-2008
No Data
No Data
$
2008-2009
No Data
No Data
$
2009-2010
No Data
No Data
$
2010-2011
No Data
No Data
$
2011-2012
No Data
No Data
$
2012-2013
No Data
No Data
$
2013-2014
No Data
No Data
$
520,058
6
493,617
4
524,140
5
407,793
4
419,010
4
434,233
4
446,792
4
570,224
5
Note:
Data prior to 2004 not available in this format.
Data not available for City-Wide Occupancy Rate and Average Daily Room Rates.
Data for Motels/Hotels separated from RV Park/Vacation Rentals in 2007 and 2008.
121
$
$
$
$
$
$
$
$
68,335
8
55,072
9
165,081
11
166,931
12
188,055
15
211,749
15
256,154
15
245,297
17
Schedule 8 D-1
City of Pismo Beach
Principal Transient Occupancy Tax Payers – Top Ten
2014
Cliffs of Shell Beach
Cottage Inn
Dolphin Bay Hotel
Hilton Garden Inn
Kon Tiki Motel
Pismo Coast Village
Pismo Lighthouse Suites
Sandcastle Inn
Seacrest Motel
Shorecliff Inn
2013
2012
Cottage Inn
Cottage Inn
Dolphin Bay Hotel
Dolphin Bay Hotel
Hilton Garden Inn
Hilton Garden Inn
Kon Tiki Motel
Kon Tiki Motel
Pismo Coast Village
Pismo Coast Village
Sandcastle Inn
Sandcastle Inn
Seacrest Motel
Seacrest Motel
Shorecliff Inn
Shorecliff Inn
2011
Cottage Inn
Dolphin Bay Hotel
Kon Tiki Motel
Oxford Suites Resort
Pismo Coast Village
Sandcastle Inn
Seacrest Motel
Shorecliff Inn
2010
Cottage Inn
Dolphin Bay Hotel
Kon Tiki Motel
Pismo Coast Village
Sandcastle Inn
Seacrest Motel
Shorecliff Inn
2009
2008
Cottage Inn
Cottage Inn
Dolphin Bay Hotel
Kon Tiki Motel
Kon Tiki Motel
Pismo Coast Village
Pismo Coast Village
Sandcastle Inn
Sandcastle Inn
Seacrest Motel
Seaventure Motel
Seaventure Motel
Shorecliff Inn
Shorecliff Inn
2007
Cottage Inn
Kon Tiki Motel
Pismo Coast Village
Sandcastle Inn
Seacrest Motel
Seaventure Motel
Shorecliff Inn
2006
2005
Cottage Inn
Cottage Inn
Kon Tiki Motel
Kon Tiki Motel
Pismo Coast Village
Pismo Coast Village
Pismo Coast Village
Sandcastle Inn
Seacrest Motel
Sandcastle Inn
Seaventure Motel
Seacrest Motel
Shorecliff Inn
Seaventure Motel
Spyglass Inn Motel
Shorecliff Inn
Source: Principal Transient Occupancy Tax Payers provided by City of Pismo Beach records.
122
Schedule 8 E
City of Pismo Beach
Water and Sewer Rates for Single Family Residents
Fiscal
Year
Water
Monthly
Rate
Base
Per 1000
Rate
Gallons
Sewer
Monthly
Rate
Base
Per 1000
Rate
Gallons*
2004-2005
10.77
1.27
24.00
-
2005-2006
11.63
1.38
25.61
-
2006-2007
12.29
1.45
28.48
-
2007-2008
13.37
1.64
29.54
-
2008-2009
14.60
1.94
31.74
-
2009-2010
15.26
2.11
36.72
-
2010-2011
15.95
2.30
39.49
-
2011-2012
16.29
2.35
40.32
-
2012-2013
16.29
2.35
40.32
-
2013-2014
12.17
2.49
36.88
-
Source: City of Pismo Beach Financial System Rate Records
*Sewer rate is based on Fixed Rate only. In 2013-2014, rates
changed per rate study completed in August 2013.
123
Schedule 8 F
City of Pismo Beach
Principal Water and Wastewater Payers – Revenue Base Concentration Data
Water Revenue Concentration Data
Class of Customer
Single
Family
NonResidential
Fiscal
Year
Construction
City
Irrigation
Revenue in Dollars and Number of Customers
2004-2005
$
2005-2006
$
2006-2007
$
2007-2008
$
2008-2009
$
2009-2010
$
2010-2011
$
2011-2012
$
2012-2013
$
2013-2014
$
589,014
3,592
609,897
3,607
700,337
3,656
823,615
3,676
919,105
3,689
927,856
3,696
948,979
3,702
1,065,941
3,706
1,055,078
3,719
1,062,275
3,733
$
$
$
$
$
$
$
$
$
$
538,536
699
561,182
709
646,592
712
632,329
645
602,872
626
612,810
639
668,959
642
729,416
647
767,291
646
888,085
641
$
$
$
$
$
$
$
$
$
$
12,774
50
11,755
61
11,874
37
12,099
38
11,012
30
9,635
24
4,722
18
4,989
27
13,103
26
12,402
27
$
$
$
26,338
71
55,832
71
49,126
72
53,741
82
59,911
81
75,576
80
100,766
83
Totals
$
$
$
90,631
122
197,665
124
173,885
127
198,223
125
213,392
123
217,164
125
306,762
130
$
$
$
$
$
$
$
$
$
$
1,140,324
4,341
1,182,834
4,377
1,358,803
4,405
1,585,012
4,552
1,786,486
4,540
1,773,312
4,558
1,874,624
4,569
2,073,649
4,584
2,128,212
4,596
2,370,290
4,614
Wastewater Revenue Concentration Data
Class of Customer
Other
Residential
Residential
Fiscal
Year
Hotel/Motel
Commercial
Other
Revenue in Dollars and Number of Customers
2004-2005
$
2005-2006
$
2006-2007
$
2007-2008
$
2008-2009
$
2009-2010
$
2010-2011
$
2011-2012
$
2012-2013
$
2013-2014
$
746,381
3,580
796,798
3,595
858,962
3,646
956,004
3,667
1,075,481
3,681
1,166,657
3,692
1,269,866
3,695
1,369,613
3,699
1,397,950
3,712
1,261,612
3,728
$
$
$
$
$
$
$
$
$
$
236,870
292
254,830
296
235,162
291
252,967
300
279,018
325
286,706
326
299,033
322
313,537
323
319,937
326
297,433
325
$
$
$
$
$
$
$
$
$
$
344,788
38
366,812
37
390,110
39
418,120
38
401,835
38
383,347
38
400,072
38
421,547
38
434,845
37
497,113
37
124
$
$
$
$
$
$
$
$
$
$
418,290
245
522,817
249
552,668
246
538,780
244
538,316
246
540,874
263
551,518
263
566,462
271
578,342
268
591,462
269
Totals
$
$
$
$
$
$
$
$
$
$
95,837
7
96,410
8
128,591
11
136,430
26
154,115
35
128,250
32
130,805
33
130,161
33
158,153
34
192,830
35
$
$
$
$
$
$
$
$
$
$
1,842,166
4,162
2,037,667
4,185
2,165,493
4,233
2,302,301
4,275
2,448,765
4,325
2,505,834
4,351
2,651,294
4,351
2,801,320
4,364
2,889,227
4,377
2,840,450
4,394
Schedule 8 F-1
City of Pismo Beach
Principal Water Sale Purchasers – Top Ten
2014
City of Pismo Beach
Cliffs Shell Beach
Dolphin Bay Hotel, Inc.
Hilton Garden Inn
Motel 6 Inc.
Pismo Coast Village, Inc.
Pismo Mobile Hm Pk
Shorecliff Lodge
Toucan I HOA
Fiscal Years Ended June 30
2013
2012
City of Pismo Beach
Cliffs Shell Beach
Cliffs Shell Beach
Hacienda Del Pismo
Hilton Garden Inn
Kon Tiki
Judkins Middle School-LMUSD
Motel 6 Inc.
Motel 6 Inc.
Pismo Mobile Hm Pk
Pismo Mobile Hm Pk
Quality Inn - Pismo Beach
Seacrest Resort
Seacrest Resort
Shorecliff Lodge
Shorecliff Lodge
2011
Cliffs of Shell Beach-Hotel
Motel 6 Inc.
Pismo Mobile Hm Pk
Rose Garden Inn
Seacrest Motel
Shell Beach School-LMUSD
Shorecliff Lodge
Sunset Palisades HOA
2010
Cliffs of Shell Beach-Hotel
Cliffs of Shell Beach-Restaurant
Motel 6 Inc.
Pismo Mobile Hm Pk
Rose Garden Inn
Seacrest Motel
Shorecliff Lodge
2009
2008
Baycliff Homeowner's Assc
Hacienda Del Pismo
Motel 6 Inc.
Motel 6 Inc.
Pismo Dunes Travel
Pismo Mobile Hm Pk
Pismo Mobile Hm Pk
Shorecliff Lodge
Shorecliff Lodge
Sunset Palisades HOA
2007
Baycliff Homeowner's Assc
Hacienda Del Pismo
Kon Tiki
Motel 6
Oxford Suites
Pismo Mobile Hm Pk
Seacrest Motel
Shorecliff Lodge
2006
2005
Cal Trans
Hacienda Del Pismo
Kon Tiki
Hacienda Del Pismo
Motel 6
Kon Tiki
Oxford Suites
Lucia Mar School Dist
Motel 6
Pismo Mobile Hm Pk
Oxford Suites
Seacrest Motel
Pismo Mobile Hm Pk
Seaventure Motel
Seacrest Motel
Shorecliff Lodge
Shorecliff Lodge
125
Schedule 9
City of Pismo Beach
Ratios of Outstanding Debt by Type
(Dollars in Thousands except for Per Capita)
Fiscal
Year
General
Obligation
Bonds
Lease
Revenue
Bonds
Special
Reassessment
Assessment
& COP Revenue
Bonds
Bonds
Tax
Allocation
Bonds
Business-Type Activities
Capital
Lease
Lease
Revenue
Obligations
Bonds
Capital
Lease
Obligations
State of
California and
Other Loans
Total
City
Debt
Total
City Debt as
Percentage of
Personal
Income
Total
City Debt
Per
Capita
From CAFR
Per Capita
Personal
Population
Income
2004-2005
-
4,285
141
-
1,610
58
5
7,455
5,926
19,480
7.25%
2,235
8716
30835
2005-2006
-
4,140
110
-
1,565
-
-
7,300
9,995
23,110
8.65%
2,668
8662
30835
2006-2007
-
5,185
85
-
1,515
-
-
7,145
9,945
23,875
9.06%
2,794
8545
30835
2007-2008
-
5,160
60
-
1,465
100
-
6,985
9,744
23,514
8.86%
2,733
8603
30835
2008-2009
-
4,985
30
-
-
-
57
6,825
9,752
21,649
8.11%
2,500
8660
30835
2009-2010
-
4,735
-
-
-
-
12
6,655
9,263
20,665
7.70%
2,374
8704
30835
2010-2011
-
4,485
-
-
-
-
-
6,480
8,765
19,730
5.45%
2,577
7655
47262
2011-2012
-
4,215
-
-
-
-
-
5,710
8,255
18,180
4.79%
2,369
7675
49459
2012-2013
-
3,940
-
-
-
-
-
5,535
7,739
17,214
5.02%
2,231
7717
44456
2013-2014
-
3,650
-
-
-
-
-
5,345
7,212
16,207
5.14%
2,103
7705
40940
126
Schedule 10
City of Pismo Beach
Ratios of General Bonded Debt Outstanding
Fiscal
Year
General
Obligation
Bonds
General Bonded Debt Outstanding
Lease
Tax
Allocation
Revenue
Bonds
Bonds
Total
Percentage of
Actual Taxable
Value of
Property
Per
Capita
2004-2005
-
4,285,000
1,610,000
5,895,000
0.36%
676.34
2005-2006
-
4,140,000
1,565,000
5,705,000
0.31%
658.62
2006-2007
-
5,185,000
1,515,000
6,700,000
0.34%
784.08
2007-2008
-
5,160,000
1,465,000
6,625,000
0.30%
770.08
2008-2009
-
4,985,000
-
4,985,000
0.21%
575.64
2009-2010
-
4,735,000
-
4,735,000
0.19%
544.00
2010-2011
-
4,485,000
-
4,485,000
0.18%
585.89
2011-2012
-
4,215,000
-
4,215,000
0.18%
549.19
2012-2013
-
3,940,000
-
3,940,000
0.16%
510.56
2013-2014
-
3,650,000
-
3,650,000
0.15%
473.72
Note:
Debt service on the lease revenue bonds and tax allocation bonds is financed by the use of general
governmental financial resources available in the general fund and special revenue funds of the City.
Assessed Taxable Value of Real Property provided by Cal Muni. Tax Allocation Bonds retired early in
Fiscal Year 2009.
127
Schedule 11
City of Pismo Beach
Direct and Overlapping Governmental Activities Debt
June 30, 2014
Debt
Outstanding
Governmental Unit
Estimated
Percentage
Applicable
Estimated
Share of
Overlapping
Debt
OVERLAPPING DEBT REPAID WITH PROPERTY TAXES:
San Luis Obispo County Certificates of Participation
San Luis Obispo County Pension Obligations
San Luis Obispo Community College District Certificates of Participation
Lucia Mar Unified School District Certificates of Participation
$
29,685,000
111,234,398
19,660,000
8,620,000
6.154%
6.154%
6.131%
18.200%
TOTAL OVERLAPPING DEBT REPAID WITH PROPERTY TAXES
$
1,826,815
6,845,365
1,205,355
1,568,840
$ 11,446,374
OVERLAPPING TAX AND ASSESSMENT DEBT:
San Luis Obispo County Flood Control and Water Conservation District, Zone No. 3
Lucia Mar Unified School District
9,530,000
31,080,175
32.429%
18.200%
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
3,090,484
5,656,592
$
8,747,076
$
3,650,000
TOTAL DIRECT DEBT
$
3,650,000
TOTAL OVERLAPPING DEBT
$ 20,193,450
CITY DIRECT DEBT - GOVERNMENTAL ONLY:
City of Pismo Beach General Fund Obligations
3,650,000
TOTAL DIRECT AND OVERLAPPING DEBT
Ratios to Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt
Total Direct Debt ($3,650,000)
Combined Total Debt
100.00%
$ 23,843,450
0.35%
0.15%
0.96%
Note:
Overlapping debt is based on the percentage of overlapping agency's assessed valuation located within the boundaries of the City.
Source: California Municipal Statistics, Inc.
128
Schedule 12
City of Pismo Beach
Legal Debt Margin Information
Fiscal
Year
Total Debt
Applicable
To Limit as
Percentage
of Debt Limit
Total Debt
Applicable
To Limit
Debt
Limit
2004-2005
61,395,387
-
0%
2005-2006
68,754,189
-
0%
2006-2007
76,827,129
-
0%
2007-2008
84,765,446
-
0%
2008-2009
90,707,179
-
0%
2009-2010
91,390,902
-
0%
2010-2011
90,995,113
-
0%
2011-2012
90,038,272
-
0%
2012-2013
90,426,011
-
0%
2013-2014
93,534,313
-
0%
Legal Debt Margin Calculation for Fiscal Year 2014
Assessed value
$
Conversion Percentage (25%)
2,494,248,353
25%
Adjusted Assessed Valuation
623,562,088
Debt Limit Percentage (15%)
15%
Debt Limit
93,534,313
Less debt applicable to limit:
General obligation bonds
-
Total debt applicable to limit
Legal debt margin
$
Total debt applicable to the limit as a percentag
Note:
The Government Code of the State of California provides for a legal debt limit of
15% of gross assessed valuation. However, this provision was enacted when
assessed valuation was based upon 15% of market value. Effective with the
1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of
the most recent change in ownership for that parcel). The computations shown
above reflect a conversion of assessed valuation data for each fiscal year from the
current full valuation perspective to the 25% level that was in effect at the time that
the legal debt margin was enacted by the State of California for local governments
located within the State.
Source: California Municipal Statistics
129
93,534,313
0%
Schedule 13
City of Pismo Beach
Pledged Revenue Coverage
Fiscal
Year
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Special
Assessment
Collections
45,447
36,494
34,762
15,938
-
Capital
Impact
Fees
Capital
Impact
Fees
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Wastewater
Service
Revenues
2,214,107
2,424,053
2,595,967
2,784,458
2,966,726
3,037,459
3,224,548
3,518,213
3,571,850
3,841,522
Special Assessment Bonds
Debt Service
-
Principal
31,000
31,000
25,000
25,000
30,000
-
Interest
10,403
8,370
6,523
4,866
3,030
-
-
2004 Revenue Bonds
Less
Net
Operating
Available
Expenses
Revenue
1,477,945
736,162
1,646,359
777,694
2,249,798
346,169
1,677,462
1,106,996
1,620,054
1,346,672
1,853,902
1,183,557
1,909,617
1,314,931
1,912,039
1,606,174
1,909,756
1,662,094
2,370,387
1,471,135
Coverage
1.10
0.93
1.10
0.53
-
Debt Service
Principal
45,000
155,000
155,000
160,000
160,000
170,000
175,000
175,000
-
Interest
256,109
300,405
297,305
293,472
291,005
285,535
282,330
262,174
-
Coverage
2.44
1.71
0.77
2.44
2.99
2.60
2.88
3.67
-
Note:
Wastewater revenues include service fees only. Data for wastewater shown in fiscal 2005 and thereafter when
proceeds of State of California SRF loan first where drawn down.
Operating expenses exclude depreciation and amortization.
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Wastewater
Service
Revenues
2,595,967
2,784,458
2,966,726
3,037,459
3,224,548
3,518,213
3,571,850
3,841,522
State of California Wastewater Construction Loan-WWTP
Debt Service
Capital
Less
Net
Impact
Operating
Available
Fees
Expenses
Revenue
Principal
Interest
2,249,798
346,169
426,178
183,081
1,677,462
1,106,996
433,862
175,398
1,620,054
1,346,672
461,684
167,575
1,853,902
1,183,557
449,648
159,612
1,909,617
1,314,931
457,755
151,505
1,912,039
1,606,174
466,008
143,251
1,909,756
1,662,094
474,410
134,849
2,370,387
1,471,135
482,964
126,295
Coverage
0.57
1.82
2.14
1.94
2.16
2.64
2.73
2.41
Continued
130
Schedule 13
City of Pismo Beach
Pledged Revenue Coverage, Continued
Page 2
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Wastewater
Service
Revenues
2,595,967
2,784,458
2,966,726
3,037,459
3,224,548
3,518,213
3,571,850
3,841,522
State of California Wastewater Construction Loan-Park/Cypress Project
Debt Service
Capital
Less
Net
Available
Impact
Operating
Fees
Expenses
Revenue
Principal
Interest
2,249,798
346,169
10,009
4,638
1,677,462
1,106,996
10,209
4,438
1,620,054
1,346,672
10,413
4,234
1,853,902
1,183,557
10,621
4,025
1,909,617
1,314,931
10,834
3,814
1,912,039
1,606,174
12,433
2,214
1,909,756
1,662,094
11,271
3,375
2,370,387
1,471,135
11,694
2,952
Coverage
23.63
75.58
91.94
80.81
89.77
109.66
113.48
100.45
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Wastewater
Service
Revenues
2,784,458
2,966,726
3,037,459
3,224,548
3,518,213
3,571,850
3,841,522
State of California Wastewater Construction Loan-Pismo Oaks Lift Station Project
Debt Service
Capital
Less
Net
Available
Impact
Operating
Fees
Expenses
Revenue
Principal
Interest
1,677,462
1,106,996
1,620,054
1,346,672
1,853,902
1,183,557
29,319
12,588
1,909,617
1,314,931
29,948
11,959
1,912,039
1,606,174
30,950
10,957
1,909,756
1,662,094
31,020
10,887
2,370,387
1,471,135
31,486
10,421
Coverage
28.24
31.38
38.33
39.66
35.10
Note:
For all State of CA SRF Loans, Wastewater revenues include service fees only.
2011-2012
2012-2013
2013-2014
Wastewater
Service
Revenues
3,518,213
3,571,850
3,841,522
Capital
Impact
Fees
-
2012 Revenue Bonds
Less
Net
Available
Operating
Expenses
Revenue
1,912,039
1,606,174
1,909,756
1,662,094
2,370,387
1,471,135
Note:
Wastewater revenues include service fees only.
No Debt Service paid in FY 11-12 as 2004 Bonds were refunded by this issue.
131
Debt Service
Principal
175,000
190,000
Interest
211,089
202,813
Coverage
4.30
3.75
Schedule 14
City of Pismo Beach
Demographic and Economic Statistics
Fiscal
Year
Population
Personal
Income
Per Capita
Personal
Income
Unemployment
Rate
2004-2005
8,716
268,757,860
30,835
3.50%
2005-2006
8,662
267,092,770
30,835
3.20%
2006-2007
8,545
263,485,075
30,835
3.90%
2007-2008
8,603
265,273,505
30,835
4.10%
2008-2009
8,660
267,031,100
30,835
7.80%
2009-2010
8,704
268,387,840
30,835
9.70%
2010-2011
7,655
361,790,610
47,262
9.40%
2011-2012
7,675
379,597,825
49,459
9.50%
2012-2013
7,717
343,066,952
44,456
6.80%
2013-2014
7,705
315,442,700
40,940
5.30%
Source:
California Labor Market Info. Data Library as of Nov of each year.
Per Capita Personal Income based on Census Data.
132
Schedule 15
City of Pismo Beach
Principal Employers – Top Ten
Last Eight Fiscal Years
Employer
The Cliff's of Shell Beach
Dolphin Bay Resort
U.S. Postal Service
Keller-Williams
Brad's Restaurant
City of Pismo Beach
Sea Venture
McClintock's
Steamer's
Shore Cliff Lodge
Total
Number
Employees
Rank
Percentage
of Total City
Employment
220
197
105
98
85
85
73
66
53
50
1
2
3
4
5
6
7
8
9
10
4.40%
3.94%
2.10%
1.96%
1.70%
1.70%
1.46%
1.32%
1.06%
1.00%
Dolphin Bay Resort
U.S. Postal Service
Keller-Williams
City of Pismo Beach
Brad's Restaurant
Sea Venture
McClintock's
Steamer's
Shore Cliff Lodge
20.64%
Total
1,032
Employer
Number
Employees
Rank
Dolphin Bay Resort
Keller-Williams
City of Pismo Beach
U.S. Postal Service
McClintock's
Steamer's
Sea Venture
Brad's Restaurant
Shore Cliff Lodge
213
180
90
85
82
70
68
67
60
49
1
2
3
4
5
6
7
8
9
10
4.44%
3.75%
1.88%
1.77%
1.71%
1.46%
1.42%
1.40%
1.25%
1.02%
Total
964
20.08%
222
195
102
92
86
75
70
68
62
49
1
2
3
4
5
6
7
8
9
10
4.53%
3.98%
2.08%
1.88%
1.76%
1.53%
1.43%
1.39%
1.27%
1.00%
1,021
20.84%
Number
Employees
Rank
Percentage
of Total City
Employment
Dolphin Bay Resort
Keller-Williams
City of Pismo Beach
U.S. Postal Service
McClintock's
Brad's Restaurant
Sea Venture
Steamer's
Shore Cliff Lodge
160
110
110
88
78
76
65
64
60
45
1
2
3
4
5
6
7
8
9
10
3.48%
2.39%
2.39%
1.91%
1.70%
1.65%
1.41%
1.39%
1.30%
0.98%
Total
856
Employer
18.61%
Number
Employees
Rank
Percentage
of Total City
Employment
McClintock's
Keller-Williams
Steamer's
Brad's Restaurant
City of Pismo Beach
Shore Cliff Lodge
Sea Venture
U.S. Postal Service
Pelican Point Restaurant
160
125
107
100
90
90
85
80
75
75
1
2
3
4
5
6
7
8
9
10
3.52%
2.75%
2.36%
2.20%
1.98%
1.98%
1.87%
1.76%
1.65%
1.65%
Total
987
21.74%
Employer
Rank
Percentage
of Total City
Employment
Percentage
of Total City
Employment
Employer
Number
Employees
Number
Employees
Rank
Percentage
of Total City
Employment
City of Pismo Beach
Keller-Williams
Martin Resorts
Dolphin Bay Resort
McClintock's
U.S. Postal Service
Brad's Restaurant
Sea Venture
Steamer's
158
131
121
106
105
83
80
57
56
52
1
2
3
4
5
6
7
8
9
10
3.43%
2.85%
2.63%
2.30%
2.28%
1.80%
1.74%
1.24%
1.22%
1.13%
Total
949
Employer
20.63%
Continued
133
Schedule 15
City of Pismo Beach
Principal Employers – Top Ten, Continued
Last Eight Fiscal Years
Page 2
Employer
Martin Resorts
City of Pismo Beach
Keller-Williams
U.S. Postal Service
McClintock's
Sea Venture
Brad's Restaurant
Steamer's
United Staffing Associates
Total
Number
Employees
Rank
Percentage
of Total City
Employment
204
183
128
102
100
84
77
57
57
54
1
2
3
4
5
6
7
8
9
10
4.43%
3.98%
2.78%
2.22%
2.17%
1.83%
1.67%
1.24%
1.24%
1.17%
Martin Resorts
The Cliff's
City of Pismo Beach
Keller-Williams
McClintock's
Sea Venture
Brad's Restaurant
U.S. Postal Service
Steamer's
22.74%
Total
1,046
Employer
Employer
McClintock's
City of Pismo Beach
Keller- Williams
U.S. Postal Service
Steamer's
Pelican Pointe
Brad's Restaurant
Sea Venture
Total
Number
Employees
Rank
Percentage
of Total City
Employment
192
130
125
120
100
88
85
83
75
75
1
2
3
4
5
6
7
8
9
10
4.17%
2.83%
2.72%
2.61%
2.17%
1.91%
1.85%
1.80%
1.63%
1.63%
1,073
23.33%
Note:
Source: City of Pismo Beach provided information by contacting employers for all years except 2010.
HDL provided the information for 2010.
134
Number
Employees
Rank
Percentage
of Total City
Employment
203
200
125
110
92
88
86
75
75
64
1
2
3
4
5
6
7
8
9
10
4.41%
4.35%
2.72%
2.39%
2.00%
1.91%
1.87%
1.63%
1.63%
1.39%
1,118
24.30%
Schedule 16
City of Pismo Beach
Full-Time Equivalent City Government Employees by Function/Program
2005
Function/Program
General government:
Administration
Human Resources
City Council
City Attorney - Contract
CVB
Administrative Services
Information Technology
2006
5
4
1
5
1
2
7
5
1
2
7
Full-Time Equivalent Employees as of June 30
2008
2009
2010
2011
2012
2007
4
1
5
1
2
7
4
1
5
1
2
6
4
1
5
1
2
6
4
1
5
1
2
6
4
1
5
1
2
6
2013
4
1
5
1
2
6
2014
4
1
5
1
2
6
4
1
5
1
2
6
1
-
-
-
-
-
-
-
-
-
34.00
-
34.00
-
34.00
-
34.00
-
34.00
-
34.00
-
34.00
-
33.00
-
33.00
-
34.00
-
Community Development:
Planning
Building
Recreation
RDA
Parking
4.60
4.10
1.70
0.10
-
4.60
4.10
1.70
0.10
-
4.60
4.10
1.70
0.10
-
4.60
4.10
1.20
0.10
1.00
4.60
4.10
1.20
0.10
1.00
4.60
4.10
1.20
0.10
1.00
4.60
4.10
1.20
0.10
1.00
4.60
4.20
1.20
1.00
4.60
4.20
1.20
1.00
4.60
4.10
1.20
1.10
Public Works/Engineering:
Engineering
Streets and Govt Bldgs
Park Maintenance/Fac.
Vets Halls
4.95
4.83
6.52
-
4.95
7.23
7.52
-
4.95
7.23
7.52
-
3.70
4.78
7.52
-
3.70
4.78
7.52
-
3.70
4.78
7.52
-
3.70
4.78
7.52
-
3.70
4.78
7.52
-
3.70
4.78
7.52
-
3.60
3.03
7.32
-
Water:
Treatment and distribution
Billing
4.63
0.67
4.63
0.67
4.63
0.67
6.25
0.67
6.00
0.67
6.00
0.67
6.00
0.67
5.00
0.67
5.00
0.67
6.00
0.50
Wastewater:
Collection and treatment
Billing
8.58
0.33
8.58
0.33
8.58
0.33
7.78
0.33
8.05
0.33
8.05
0.33
8.05
0.33
8.05
0.33
8.05
0.33
8.10
0.50
Motor Vehicle Operations:
Motor Vehicle Operations
2.05
2.05
2.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
97.05
100.45
100.45
95.98
96.00
96.00
96.00
94.00
94.00
95.00
Public safety:
Police
Fire
Totals
Note:
The City contracted with CDF in FY 2001-02, therefore, no staffing is listed for years thereafter.
Source: City of Pismo Beach payroll records.
135
Schedule 17
City of Pismo Beach
Operating Indicators by Function/Program
2005
Function/Program:
Police:
Physical arrest
Traffic violations
2006
2007
2008
2009
2010
2011
2012
2013
2014
748
1,865
590
1,052
963
1,371
978
1,451
1,081
2,129
953
2,398
998
2,490
875
2,199
974
1,612
1,001
2,590
Fire:
Emergency responses
Fires extinguished
987
36
946
34
1,161
37
1,202
38
1,343
20
890
22
1,081
19
1,022
22
1,084
25
1,175
16
Building:
Building permits issued
Other permits issued
288
704
289
597
222
500
298
609
214
460
210
552
177
471
213
455
246
436
209
478
Public works:
Miles streets resurfaced
-
0.10
-
3.15
2.62
38.00
4.10
6.03
6.08
-
no data
no data
186
2,639
125
1,983
148
2,100
1,179
1,681
302
1,540
187
3,000
255
1,500
274
2,000
216
2,000
no data
1.90
33
1.90
15
1.98
40
2.04
39
1.91
15
1.76
59
1.71
20
1.78
21
1.84
5
1.91
1.70
1.70
1.79
1.80
1.73
1.55
1.48
1.59
1.63
1.72
no data
1.13
20
1.18
9
1.21
30
1.21
39
1.21
18
1.13
4
1.08
6
1.14
7
1.07
33
1.07
Parks and Recreation:
Number of facility rentals
Number of class admissions
Water:
Number new connections
Daily average water
production in MGD
Daily average water
consumption in MGD
Wastewater:
Number new connections
Daily average treatment
in millions gallons(MGD)
Note:
Park and Recreation information unavailable prior to fiscal year 2006.
Water and Wastewater connections data not able to locate prior to 2006.
Source: City of Pismo Beach Departments
136
Schedule 18
City of Pismo Beach
Capital Asset Statistics by Function/Program
2005
2006
2008
2009
2010
2011
2007
2012
2013
2014
Function/Program:
Police:
Stations
Patrol units
1
6
1
6
1
6
1
6
1
6
1
6
1
6
1
6
1
6
1
6
Fire
Stations
Engines
2
2
2
2
2
2
2
2
2
2
2
2
2
3
2
3
2
3
2
3
Public works:
Miles of streets
Streetlights
Traffic signals
37
757
3
37
757
3
37
757
3
37
757
3
37
757
3
38
757
3
38
757
3
46
828
3
46
828
3
46
828
3
Parks and recreation:
Community centers
Parks
Park acreage
2
18
205
2
18
205
2
18
205
2
18
205
2
18
205
2
18
205
2
18
205
2
18
205
2
18
205
2
18
205
Water:
Miles of mains
Number connections
Maximum plant capacity
in millions gallons
53
4,405
2.40
53
4,443
2.40
53
4,458
2.16
53
4,713
2.16
54
4,698
2.16
54
4,684
2.16
54
4,757
2.16
55
4,777
2.16
55
4,777
2.16
56
4,819
2.16
Wastewater:
Miles of sewers
Number connections
Maximum plant capacity
in millions gallons
39
4,162
1.75
39
4,182
1.90
39
4,191
1.90
39
4,233
1.90
40
4,336
1.90
40
4,354
1.90
40
4,363
1.90
40
4,366
1.90
40
4,367
1.90
40
4,400
1.90
Note:
Source: City of Pismo Beach Departments.
137
Schedule 19
City of Pismo Beach
Continuing Disclosure Annual Report Information for Fiscal Year 2013-14
$5,185,000
PISMO BEACH PUBLIC FINANCING AUTHORITY
(SAN LUIS OBISPO COUNTY, CALIFORNIA)
SERIES 2007A LEASE REVENUE REFUNDING BONDS
(CITY HALL REFUNDING PROJECT)
Content of Annual Reports
(i) Audited financial statements of the City:
This exhibit is attached to the City’s audited financial statements.
(ii) Operating data, including the following information with respect to the City’s preceding Fiscal Year (to the
extent not included in the audited financial statements described in paragraph (a) above):
(a) Outstanding indebtedness and lease obligations;
Please see information in the audited financial statements.
(b) General fund budget and actual results;
(c) Assessed valuations; and
(d) Largest local secured taxpayers.
Reporting of Significant Events
There were no significant events that occurred during the Fiscal Year ended June 30, 2014. According to the
Continuing Disclosure Certificate, significant events include:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
principal and interest payment delinquencies.
non-payment related defaults.
modifications to rights of Bondholders.
optional, contingent or unscheduled bond calls.
defeasances.
rating changes.
adverse tax opinions or events affecting the tax-exempt status of the Bonds.
unscheduled draws on the debt service reserves reflecting financial difficulties.
unscheduled draws on the credit enhancements reflecting financial difficulties.
substitution of the credit or liquidity providers or their failure to perform.
release, substitution or sale of property securing repayment of the Bonds.
138
Schedule 20
$5,710,000
(City of Pismo Beach, California)
SERIES 2012 WASTEWATER REFUNDING REVENUE BONDS
(Wastewater Project of 2004)
Content of Annual Reports
(i) Audited financial statements of the City:
This exhibit is attached to the City’s audited financial statements.
(ii) information with respect to the City’s wastewater enterprise (the “Wastewater Enterprise”) showing:
(a) Annual wastewater service structure and pricing, together with adopted rates in a format comparable
to Table 6 of the Official Statement for the prior Fiscal Year:
BI-MONTHLY FIXED RATES
BASED ON WATER METER SIZE
Meter Size
(In Inches)
2014
5/8”
3/4”
1”
1 ½”
2”
3”
4”
6”
$21.72
$30.61
$48.40
$92.87
$146.24
$270.78
$448.68
$1,071.34
BI-MONTHLY RESIDENTIAL
FIXED CONSUMPTION CHARGES[1]
Customer
Classification
2014
Single Family
Multifamily
Mobile Home
$52.05
$35.11
$31.41
139
Schedule 20
$5,710,000
SERIES 2012 WASTEWATER REFUNDING REVENUE BONDS, Continued
Page 2
BI-MONTHLY
VARIABLE CONSUMPTION CHARGES[2]
Customer
Classification
Commercial
Dual Residential/Restaurant
Dual Residential/Commercial
Grocery
Hotel
Hotel w/ Rest.
School w/Cafeteria
School
Shopping Center
Shopping Center w/Restaurant
Trailer/RV
Service Station
Restaurant/Bakery
Municipal
2014
$5.29
$8.04
$5.10
$10.66
$4.93
$8.08
$5.28
$3.82
$5.41
$8.14
$3.56
$4.86
$10.97
$5.28
[1] Apartments, Multifamily and Mobile Home are charged by the dwelling unit.
[2] Charge based on water consumption (dollars per hundred cubic feet of water
billed for each two-month billing period).
140
Schedule 20
$5,710,000
Page 3
(b) Largest ten users of the Wastewater Enterprise, based on annual billings for the prior fiscal year
(largest customer based on water consumption):
Ten Largest Wastewater Customers by Revenue
2014
Revenue
Customer Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Pismo Beach Mobile Home Park, Inc.
Cliff’s Shell Beach
Pismo Coast Village, Inc.
Motel 6, Inc.
Hilton Garden Inn
Shorecliff Lodge
Dolphin Bay Hotel, Inc.
Seacrest Resort
Lucia Mar School District
Total Wastewater Revenue from
Ten Largest Customers
Total Wastewater Revenue from
all Other Customers
Total Wastewater Service Charges
Percent
of Total
$46,094
$89,118
$44,431
$34,497
$33,648
$33,043
$32,837
$24,195
$29,146
$21,098
1.2%
2.35%
1.17%
.91%
.89%
.87%
.87%
.77%
.77%
.56%
$388,107
10.24%
$3,402,861
89.76%
$3,790,967
100%
(c) Any additional indebtedness incurred during the prior Fiscal Year which is payable from revenues of
the Wastewater Enterprise on a parity with the Bonds:
141
Schedule 20
$5,710,000
Page 4
(d) Debt Service Coverage Projections for the Series 2012 Wastewater Refunding Revenue Bonds:
Historical Operating Results and Debt Service Coverage
Audited
FY 2013-14
Gross Revenues
Charges for Services
Miscellaneous
Interest and Investment Revenue
Total Gross Revenues
$3,790,967
$
50,555
$
7,221
$3,848,743
Operating Expenses[1]
Salaries and Benefits
Purchased Power
Customer Accounting
Services and Supplies
Total Operating Expenses
$ 820,967
$ 199,963
$ 21,870
$1,327,587
$2,370,387
Net Revenues
$1,478,356
Total Debt Service
2004 State Loan-WWTP
2006 State Loan-Park/Cypress
2008 State Loan-Pismo Oaks
2012 Wastewater Refunding Bonds
Total Debt Service
$609,259
$14,646
$41,907
$392,813
$1,058,625
Debt Service Coverage
1.40
[1] Excludes depreciation, amortization, loss on capital assets, and debt service
expenses.
142
Schedule 20
$5,710,000
Page 5
Reporting of Significant Events
There were no significant events that occurred during the Fiscal Year ended June 30, 2014. According to the
Continuing Disclosure Certificate, significant events include:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
Principal and interest payment delinquencies;
Non-payment related defaults, if material;
Unscheduled draws on debt service reserves reflecting financial difficulties;
Unscheduled draws on credit enhancements reflecting financial difficulties;
Substitution of credit or liquidity providers, or their failure to perform;
Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of
taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with
respect to the tax status of the security, or other material events affecting the tax status of the security;
Modifications to rights of security holders, if material;
Optional, contingent or unscheduled bond calls, if material;
Defeasances;
Release, substitution, or sale of property securing repayment of the Bonds, if material;
Rating changes;
Bankruptcy, insolvency, receivership or similar event of the City;
The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or
substantially all of the assets of the City, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a definitive agreement relating to any
such actions, other than pursuant to its terms, if material; and
Appointment of a successor or additional trustee or the change of name of a trustee, if material.
143
Schedule 21
City of Pismo Beach
Continuing Disclosure for Water Enterprise Fund
Table 1: Five Largest Customers of Water Enterprise
Five Largest Customers
Water
Annual
% of Total
Customer
Volume (ccf) Payment Payments
Pismo Beach Mobile Home Park
14,603
$42,040
1.11%
Cliff's Shell Beach
13,547
$39,247
1.03%
Pismo Coast Village
12,168
$23,060
0.61%
Toucan I HOA
8,354
$27,633
0.73%
Motel 6
7,389
$21,585
0.57%
Table 2: Changes in the Service Area and Customer Base for Water Enterprise/Statement of
Connections and Sales Revenues for Water Enterprise
Customer Base & Water Sales Revenue
Number of Customers
Customer Base
Residential
3,733
Apartments
325
Commercial/Industrial
343
Other
213
4,614
Total All Customers
Water Sales Revenue
$3,793,692__
Table 3: Rates and Charges for Water Deliveries for Fiscal Year Most Recently Concluded
Water Service Rates
Minimum Monthly Service Charge: $24.33
Additional Charge per 100 Cubic Feet of Water Used:
$2.49 0-10; $3.08 11-20; $3.64 21-35; $4.98 Over 35
Water Set-up Fee per Account: $38.00
Re-connection Fees:
During Business Hours: $30.00
After Hours: $132.00
144
Schedule 21
City of Pismo Beach
Continuing Disclosure for Water Enterprise Fund, Continued
Page 2
Table 4: In addition to the above information, please provide the following:
Additional Information
Number for actual water deliveries :
2,144.70 Acre Feet
Impact Fees/Utility Tax:
Type: Water Tax
Revenue Received: $1,272,141
Type: Impact Fees
Revenue Received: $
145
445,480
Schedule 21
City of Pismo Beach
Continuing Disclosure for Water Enterprise Fund, Continued
Page 3
FISCAL YEAR 2014 WATER ENTERPRISE FUND OPERATING RESULTS
The following table is a summary of operating results of the water system of the City for FY 2013/14. These results
have been derived from the City’s financial statements but exclude certain non-cash items and include certain other
adjustments. The table has not been audited by the City’s auditor.
CITY OF PISMO BEACH
REVENUES
June 30,
2014
$3,793,692
445,480
18,018
1,272,141
108,884
$5,638,215
Water Service Charge
State Water Impact Fee
Interest
Assessments
Other Reveues
TOTAL REVENUES:
OPERATING EXPENSES
Administration and General
*Lopez Contract Payments 1
Operations & Maintenance
Utilities
TOTAL OPERATING EXPENSES:
686,157
1,156,211
707,108
121,785
2,671,261
NET REVENUES
2,966,954
State Water Payments
Total Contract Payments
1,440,238
1,440,238
Coverage Ratio:
2.06
Available for Capital improvements and
other purposes
1
$1,526,716
The Lopez obligation was previously reported as parity debt in the 1996 Revenue Bond official statement. The City has
determined that this is not a debt obligation but is instead a contract obligation. Therefore, the amount is presented as an
operating expense.
146
Other Independent Auditors’ Report
147
glennburdette.com
SAN LUIS OBISPO
1150 Palm Street
San Luis Obispo, CA 93401
p 805 544 1441
f 805 544 4351
PASO ROBLES
102 South Vine Street, Ste. A
Paso Robles, CA 93446
p 805 237 3995
f 805 239 9332
SANTA MARIA
2222 South Broadway, Ste. A
Santa Maria, CA 93454
p 805 922 4010
f 805 922 4286

FY 2014 Annual Financial Report

Transcription

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